Bloomberg Daybreak: August 29, 2022 - Hour 2 (Radio)

as Wall Street braces for Friday's payrolls report. NASA's on Man Artemis one space capsule is expected to blast off to the moon. Plus u N Nuclear Watchdog monitors are on their way to Ukraine's power plant. Michael bar More ahead, I'm John Stashower and sports The Mets and the Yankees lost. The Jets beat the Giants. Rory McIlroy won the golf

in the US Open begins today. That's all s Trady Ahead on Bloomberg Daybreak on Bloomberg Eliving Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Syrius XM one nineteen and around the world. Old on Bloomberg Radio dot com and via the Bloomberg Business app. Good morning, I'm Nathan Hagar and I'm Karen Moscow. US dot Indix futures are lower

this morning. We are coming up to six oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg s and P futures down about thirty six points this morning. Down features down two D fifty three and NASDACK futures down one thirties seven. Ten year Treasury down nineteen thirty seconds. Yeld three point one one percent, and they yield on the

two year at three point four or five percent. Nathan, Karen, we're still feeling the impact of a hawk is J. Powell. This morning, global stocks are at a one month low. The last time we saw the yield on the two year treasury this level was two thousand seven. This morning slump follows the worst day for US stocks since June. The major index has all fell at least three percent,

with the NASTAC plunging almost four percent. The catalyst for the sell off Chairman Powell signaling interest rates will stay higher for some time. Trina l Senior economist and Moodies

Analytics says the FED shares comments have broad implications. It makes sense to say that US recession odds have also increased because that lays a sharp focus on trying to bring down inflation is really the priority of the FED at this point, and so as a consequence of that, I mean, domestic demand just really has to to come down. Katrina L with Moody's Analytics says the FED is also

uncomfortable with the current tightness in the labor market. One point to trillion dollars in market value was wiped out on Friday. Well, Nathan, A strong message by j. Powell and the Fed last week has some on Capitol Hill pushing back. Senator Elizabeth Moore and says she's worried the central Bank will tip the US economy into recession. Do you know what's worth than high prices and a strong economy. It is high prices and millions of people out of work.

I'm very worried that the FED is going to tip this economy into recession. Senator Elizabeth Wore Intel CNN she does not believe higher interest rates will curb current inflationary pressures. J Palen the FED get another key economic reports to evaluate this week, Karen. On Friday, we see the August jobs report here with the preview is Bloomberg City tell Judas economists at US payroll growth moderated after scoring a

July gain in more than a half million. Technology firms have been trimming payrolls and freezing hiring, but job openings continue at historic kis. The US unemployment rate is also one of the lowest in decades. More numbers. This one's conference board. Consumer confidence and dex couldn't prove thanks to

lower gasoline prices. While I s M data may show modest factory gains, they eat Judas Bloomberg Day break, right, Fanny, thank you, while the Wall Street sell off is spreading overseas this Monday morning, and we begin our team coverage at the Bloomberg's Danny Berger, who joins us live from London. Danny, good morning, Good morning, Karen. Yeah, European stocks continue to be under pressure. Forget another trading day down more than one percent, not two dissimilar from what we're seeing from

US equities. It's just continuing this risk asset pain as we just a fetcher j Powell who says that they are going to continue to have that restrictive policy stands for some time. Perhaps stocks didn't expect that, maybe bonds did. Maybe that's why there was less movement on Friday. But today we are seeing stocks starting to join that sell off. Two year yields those are hired by about seven basis points.

The hyacinths two thousand seven also under pressure some of the currencies, with a very strong dollar Euro dollar that's blow parody. The pound that's down half a percent. So really that desire for havens means the only thing really buying today is the dollar. The one spot perhaps where there isn't pain. UK markets. UK stocks are closed, with a bank holiday taking place throughout the country today. Live in London, I'm Danny Burger, Bloomberg day Break. All right, Danny,

thank you. Stocks also fell in Asia over night. Japan's NIEK led declines with a drop of more than two and a half percent. We get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet, Good morning, Nathan and Karen. The m s c I Asia Pacific Index lumped as much as two point three percent, the most since June, with a financials and industrials the worst performing sectors. Key equity gauges in Japan and Taiwan led regional losses,

sliding close to three percent each. The p BOC said the on show You unfixed stronger for a fourth session, as the off shore slid through six point nine to the dollar for the first time in two years, and South Korea is one fell the most in eleven weeks to hold it its lowest level since April two thousand and nine. In Singapore. Juliet Sally Bloomberg daybreak Right, Juliette, thank you are staying. In Asia, economists are turning more

bearish on China. According to Bloomberg's latest quarterly survey, China's economy is now projected to grow just three and a half percent this year. That's down from a previous forecast of three point nine percent. Economists see lingering risks as turmoil and China's property marketing COVID outbreaks persist. And one

other note out of Asia this morning, Karen. Despite China and the US reaching a preliminary deal to resolve a standoff over audits, Goldman Sex says markets are still pricing in a fifty percent chance of Chinese companies being delisted from US exchanges. Goldman says the risk of delisting has come down, but more still needs to be done as

execution risk remains. While there is uncertainty about the future of Chinese stocks in the US, Nathan meme stocks are here to stay, according to our latest survey we get the details from Bloomberg's Jeff Bellinger. Wall Street says stocks like Game Stop, AMC Entertainment, and bed Beth and Beyond are here to stay. Nearly two thirds of the more than five hundred respondents in the latest M Live Pulse survey expect some version of the meme stock mania to

stick around. Speculating in meme stocks has been painful this year. A basket of thirty seven retail trader favorites tracked by Bloomberg is down nearly forty percent in twenty two. The M Live Pulse survey found that while the meme stock phenomenon is likely to stick around, sixty nine percent said it is unlikely to see the trading volumes that did during its January twenty twenty one high, nor are such stocks seen as a good bet for the remainder of

the year. Jeff Bellinger Bloomberg daybreak. Thanks Jeff. We're seeing bitcoin fall stocks lower this morning, the digital tokens trading below twenty thousand as concerns about Fed policy way on sentiment. Before this weekend, Bitcoin hadn't been below twenty thousand since July. It had even crossed above twenty five thousand earlier this month. Straight ahead, we have your latest local headlines and a check of sports. This is Bloomberg six o seven on

Wall Street, seventy five degrees in Central Park. Still got that closure on the westbound cross Bronx at White Plains Road. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Michael, thank you very much. Nathan. A few leak interrupted NASA's launch countdown for its new Moon rocket early this morning. Were you appearing in the same place and saw a see pitch during a dress rehearsal back in the spring?

Launch controllers hold it the tanking operation, which already was running an hour late because of thunderstorms off shore, asked for the excitement over the mission. Taylor Leonard helped build part of the Moon rocket that will eventually of Americans back on the Moon. I'm very pumped. So I was actually a part of the test team that tested the functionality of the rocketed a be on it. So it's super exciting. Um like seeing your work right here. You know,

it's pretty cool, Nassas Taylor Leonard. The plan is for O'rian, with three test dummies on board, to loop around the Moon and come back to Earth. The head of the International Atomic Energy Agency says that the u N Nuclear watch dogs long awaited expert mission to the power plan in Ukraine is now on its way. Russia and Ukraine have traded claims of strikes at or near the plant in recent days, intensifying fears that the fighting could cause

a massive radiation leak. It was a violent weekend in New York City after more than a dozen people were shot, several fatally. That includes a shooting at the board walk on Coney Island that left one person dead and four others hurt. Police in Bend, Oregon confirmed three people are dead following a shooting at the grocery store. The meal shooter killed two people at a Costco. All officers then

entered the store and found the suspected shooter dead. Bend Police chief Mike Rantz says the suspect was armed with an a R fifteen style rifle. We have officers from every agency in central Oregon, as well as the FBI, Ben Fire and Rescue and other agencies on scene and assistant. We are very precisive of this home Ben Police Chief Mike Krantz, send up a Georgia leader, Chuck Schumer, welcome

President Joe Biden's federal student Loan Forgiveness Plan. Schumer urged loan processors to prepare for a wave of inquiries about the program. Fall on all of the loan processors to be at the ready for the wave of calls that's starting to come in and let students know how they apply and what their rights are sending to Schumer of New York says, college used to be a ladder up, but student dead has become an anchor around the ankles

of our students. Global News twenty four hours a day on air and on Bloomberg Quicktake power by more than the journalist and analysts in more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. Nathan. Thanks Michael. Almost six cent on Wall Streets. Time for the Bloomberg Sports

Update with John shot all right, Nathan. When the Yankees were slumping, going three and fourteen, they were not hitting, and then they won five in a row with those offense of woe was resurfaced and open only one hit in in eleven Aning lost Saturday, only four singles. Yesterday, the A's won four to one. The Yanks visit the Angels tonight. Mets man is only three hits, all of them singles against air Man Marquez and two relievers. Colorado scored in the seventh and he love Max jers or in.

The Rockies won one nothing the salvage of game in the series, Atlanta lost in St. Louis. The Mets remained three games ahead. The annual Jets Giants preseason game not decide until the final minute of Chris Straveler touchdown passed to Calvin Jackson in the thirty one to twenties seven victory for the Jets, who went three and oh in the preseason Giants for two and one. They did not use Daniel Jones. They started Tyrod Taylor and then he heard his back. It's not believed to be a serious injury.

Golf season ended with a Torch Championship in Atlanta and a big comeback by Rory McElroy. Back on Thursday, he was ten shots behind Scott the Jefe only trailed by six when the final round began, mat for Roy one by one. I was really giving myself much of a

John's tin off and the fourth roned. I thought, you know, silver lining was I was playing in the last group so I could at least keep an eye on what he was doing if if things didn't quite work out for him, and um, you know, thankfully I was in that last group because you know, I was able to put some pressure on him early on. Chef we struggled with seventy three at Rory's third FedEx Cup title, and that comes with the first place prize eighteen billion dollars.

The US Open Tennis begins today Flushing Meadows. Serena Williams plays tennight. Can she beat Donka covinage or will this do the final match with Sereno's career, John Stay were Bloomberg Sports Okay, John thanks SMP futures down thirty six points down, Futures down two D sixty two, NASAC futures down A hundred thirty seven points, the tenure Treasury down twenty thirty seconds, yield three point one one percent. Yield on the two year now close to three point four

six x per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather morning clouds give way to sunshine and upper eighties today, mostly sunny. Tomorrow of the late they shower, possible upper eighties. Who has some storms tomorrow night, but mostly sunny again Wednesday with hides in the upper eighties Right now seventy five degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. He's

a Bloomberg Business Flash and I'm Karen Moscow. Bolt In Europe are leading a global sell off that lifted the two year treasury yield to levels last scenes in two thousands seven, as European central bank policy makers join their Federal Reserve counterparts and signaling aggressive tightening songs are sinking along with US futures and dollars climbing. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Right Now, s and p futures are down of out

thirty nine points down. Futures are down two hundred seventy four, nastack futures down one d forty four, and the decks in Germany's down one point four percent ten. Your treasury

is down twenty thirty seconds. You'll three point one one percent yield on the two year three point four or five percent nine max Screwed oil is up seven tenths per cent or sixty six cents, and ninety three dollars seventy two cents of arrol comex s go down night tenths per cent or fifteen dollars forty cents at seventeen

thirty four forty announced. The euro is at point nine nine six seven against the dollar, British bound one point one six eight two, and the yet at one thirty eight point five to the Bitcoin this morning is down seven tenths of a percent in nineteen thousand, eight hundred thirty dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world.

Michael Karen, thank you very much. The Artemis Moon rocket launch is open to proceed toward a morning lifts off from the Kennedy Space Center in Florida. The goal is for the Orion capsule, with three test dummies on board, to loop around the Moon and come back to Earth. Top intelligence officials are working with the Justice Department to conduct a quote risk assessment to see if former President Trump's handling of classified documents founded as Mara Lago Home

compromise national security. In baseball, the Yankees lost to the A's for one. The Mats lost along with the Red Sox, Orioles and Giants the Nationals one. In the final preseason NFL game, the Jets beat the Giants seven. Tennis, the

US Open begins today. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist and analysts more than a hundred, twenty countries high Michael Barr And this is Bloomberg, Nathan, this is the Big Take, the best of Bloomberg's in depth original reporting from around the globe. This is a really fast moving story that's caused off to outrage among investors. This is so fascinating. The market shutdown in a way

it's never done before. That's gonna have consequences for years to come. The Day Take on Bloomberg Rate six twenty on Wall Street Live from the Bloomberg Interacted Brooker Studios. This is Bloomberg day Break. Good morning. I'm Nathan Hagar with a look at our big take this morning on central banks around the world showing a determination to fight inflation through higher interest rates, even as we're starting to see some signs that the price pressures around the world

are at least beginning to cool off. Joining us now, one of the authors of today's Big take, Bloomberg News Chief Asia Economics correspondent and the current and a good morning. We're seeing a play out in the markets that the that they're starting to get the message here from FED Chairman Powell and the rest of the central bankers from Jackson Hole last week that their fight against inflation is

far from over. You start from over there. Two things are going on here, Nates and economists are looking at a turn in commodity markets, and what they're seeing there is all the prices obviously coming off, their high prices for other key commodities they like weet and copper coming back. Food prices in general actually came back a lot over July and thinking that there that perhaps the commodity market

now is signaling maybe a peak in headline inflation. Put your point, nobody is expecting that those prices are a few people expecting those prices to come back to where they would be, say typically around central banks targets of two or three percent, any time soon. So it's a case of maybe we're seeing a turning point for headline inflation, but nobody's nobody is thinking that the global price shock

is over just yet. And that's why central banks are saying what they are saying, which they have to keep pushing a boring costs, keep putting a weight on broader demanding the economy is try and get in placements back to where it should be. So that speaks to the challenge, doesn't it that in a large way, central banks don't have a whole lot of control about what commodity prices do, what supply chains do. No, they don't need when we

break down this this breakdown is inflation. Let's just say that the world is at a turning point for peaking headline inflation. Argument take you only have to look around the world where you see ongoing pockets of stress and for example, Europe's chronic energy crisis. There's no there's no let up and energy costs there, and obviously rising interest rates can't do any to bring down the cost of gas or other sources of energy of both. This is

what central bankers keep saying. They can't do that, but they can try and bring down the rest of demanding the broader comming. By doing that, you bring off price pressures, you know, across the board, so speak. And that's what that's what they're trying to do, and that's what ultimately they will get their inflations back down to target. But

as you say, it is a multilar story. And I think one of the other areas that people keeping a very close silent what happens in plomate markets around the world, probably speaking, jobs markets are holding up their labor shortages in several majored lout economies. So I think when you see data points such as this week's US jobs that on Friday, these are key metrics when it comes to how we have a proper turning point in inflation and then as such, what will that mean for boring costs

in a few months from now. Yeah, that was a big part of the Chairman Pal's short but sharp message at Jackson Hole last week. He did put a lot of focus on the labor market. What's the concern among the FED officials that we could be in the midst of a wage price spiral. That's part of this inflation story because because they want to anger inflation expectations, a central bankers aren't really fighting the prices that we're paying

here now today. It's all that medium term expectations and a longer term expectations and longer consumers for where prices are going in. A big part of that is, of course wage demands. And if you get into a cycle or wage price spirals, or by every sector and every employee in every company to look at the harder wages, that's where you starts to see these sties inflations might get entrenched, and that's put in the central banquets are trying to get ahead of. Now you mentioned the US,

we will see the job that on Friday. I think if that if that comes in on the strong side, it will certainly, you know, add the idea that the FED is a lot more work to do. But if does, if it comes in on the softer side, might be more that might be a bigger news story because it might suggested a broader economy to come off, which is

what the decided once. It's not just the US, by the way, central bankers around the warlock complaining, but labor shortages in New Zealand central banker everything described a chronic labor shorlder which which is of course putting up with pressure on prices. And as I say above, all of

central bankers want to keep inflation expectations anchored. Now, thanks for this said the great having on with us this morning, and the current chief Asia Economics correspondent for Bloomberg News, one of the authors of this morning's Bloomberg Big Take story breaking inflation fever is no relief for central bank ankst You can read more on Bloomberg dot com, Slash Big Take or NI Big Take go on the Bloomberg terminal. SMP futures showing some banks this morning down thirty six points,

STOW futures down two hundred sixty two. Nasdaq futures are lower by a hundred thirty six points. Two year Treasury yield right now three point four five percent of fifteen year high. This is Bloomberg. Bloomberg eleventh, three oh weather turning mostly sunny today with highs in the upper eighties. Chips for a late days shower on an otherwise mostly sunny Tuesday. Oper eighties once again will be sunny opper eighties for Wednesday. Right now seventy five degrees. Broadcasting live

from the Bloomberg Interactive Broker's studio in New York. Bloomberg E Living freem to Washington, d C, Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg sixt to the Country, Sirius XM to one nine ten, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. We are just about three hours away from the open

of US trading. Time for the five things that you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers charges margin loan rates from two point three percent to three point a three percent. Their clients can also earn extra income by lending their fully paid shares of stock. Rates subject to change. Learn more at ibk R dot com slash compare. At first, we're

still feeling the impact of a hawk ish FED. This morning, US futures are falling in Global stocks are at a one month low. That's after Friday's major drop, the worst day for US stocks and Student thirteenth the catalyst for the sell off, J Powell signaling that interest rates will stay higher. Katrina L senior economist at Moody, says the

fed shares comments have broad implications. The speech really brought home the fact that the Fed is taking no prisoners when it comes to wanting to fight inflation and sustainably bring it back down as a consequence of a recession. Results of that, then I mean, so be it. Katrina L with Moody says the Fed is also uncomfortable with the current tight labor market the meantime. Karen one of all streets biggest bears, says weak earnings, not higher rates,

is the largest threat to US stocks. Morgan Stanley's Michael Wilson says the path for stocks will be determined by earnings. He has repeatedly warned that the recent equity rally will be temporary due to tighter monetary policy. And the outlook for corporate profits well, Nathan, The Wall Street sell off is also spreading overseas. European stocks are extending last week's drop, with most indicries down more than one percent, and in Asia over night, Japan's Nika lad declines, or the drop

of more than two and a half percent. An economists are turning more barrish about China's economy care and that's due to risks and its property market and potential COVID lockdowns. According to Bloomberg's latest quarterly survey, China's economy is now projected to grow just three and a half percent this year. Tyrant Cam, head of China Property at Fitch Rating, says defaults could cause even more problems. What we really need is that the government to come in in the bigger way.

They also are now showing that they want to rely on market based mechanism. They're not trying to battle the sector at all cost. That remains the problems that we still monitoring and firing Cam with FIT Rating says he still thinks China is fully committed to stabilizing its property sector and back here in the US, MEME stocks are here to stay. Nathan that's according to nearly two thirds of the more than respondents in our latest m Live

Pulse survey. Respondents expect some version of the meme. Stock may need a stick around, even if the outlook for stocks remains the league. And that's the five things that you need to notice start your day. Brought to you by Interactive Brokers. Again, Futures are moving lower this morning, and a straight ahead your latest local headlines plus a check of sports. And this is Bloomberg all right, Karen, thank you. Six thirty three on Wall Street, seventy five

degrees in Central Park. Could still see the lays after an accident investigation on the westbound Cross Bronx Expressway, but it is back open now. We'll get the details in traffic. First, Michael Bark with what else is going on in New York and around the world. Good morning, Michael, Good morning, Nathan. NASA is dealing with a fuel leak as it prepares its new Moon rocket for liftoff on its first test flight at Florida's Kennedy Space Center. No one is inside

the Orion capsule, just three test dummies. At least one hundred thousand people are expected to watch on the beaches as the powerful rocket hopefully we'll lift off, including Taylor Leonard. She helped build part of the Moon rocket that will eventually put Americans back on the Moon. I'm really not sure what to expect. I'm kind of anticipating in myself. UM, but I think it's just gonna be a lot of energy, a lot of people. Um just really excited about the

space program. Taylor Leonard was part of the team that tested the functionality of the rocket Driver's Eyes on the Road for school Children's students are heading back to school in some parts of the Tri State area. Children returned to the classroom in Connecticut and also parts of Long Island today, the head of the International Atomic Energy Agency says that the U and nuclear watch dogs long awaited expert mission to the power plant in Ukraine is now

on its way. Russia and Ukraine have traded claims of strikes at or near the plant in recent days, intensifying fears that the fighting could cause a massive radiation leak. Ukrainian Foreign Ministre Demetroklba, we should all be united in demanding one thing, the withdrawal of Russia from Zaporisin nuclear power plant. For a minister Klaiba was visiting Swedish leaders in Stockholm today. A weekend of gun violence in New York City has left more than a dozen people shots.

Some incidents were fatal. A woman in Brooklyn died after she was shot in the head at the board of Walk on the Coney Island. One person was killed, four others were shot. The gunman still on the loose. The FBI is joining the investigation into a deadly shooting at a supermarket in Bend, Oregon. Bend Police Chief Mike Krantz says a gunman armed with an a R fifteen style rifle killed at least two people inside the supermarket last night.

Our hearts got to the victims and the families and this incident, and we know that this is a frightening thing for our community and something that we would never want to happen in our city. Chief Mike rand says the suspected gunman was found dead at the scene when officers arrived. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than hundred journalists and analysts more than a hundred twenty countries.

Michael Barr and this is Bloomberg Nathan, Thanks Michael, almost six thirty six on Wall Street. John stash Hours got the Bloomberg Sports Update. Thanks Nathan. The Mets and Yankees yesterday combined for only one run, only seven hits, all singles for the Yankees second game in a row where they failed to hit, a four one loss in Oakland, so A was split of the four game series. Aaron

Judge yesterday over four three strike acts. Tampa Bay won its game in Boston the Rais or seven a half games on the Yanks, Mets Stilly, the Braves by three. Atlanta lost in St. Louis. The Mets loss of the Rockies. One did not think campaign Max Scherzer. He struck out eleven but beaten by Colorado's Hairman Marquez. And Mets are off tonight and then the Dodgers come to town. L A fifty games over five hundred, Jets and Giants tied four different times. Jets scored in the final minute. They

won thirty one to twenty seven. The Jets these three quarterbacks, so Old Flacco through an early pick six. It was Chris Traveler who through the game winning teeny pass to Calvin Jackson. The same thing happened two weeks ago, the Giants did not use Daniel Jones, and then Tyrod Taylor heard his back. Not believed to be a serious injury, the third stringer Davis Webb came in. He went thirty to thirty eight. What I win for Rory McIlroy. He has had some disappointments and majors, but he's now won

the FedEx Cup title three times. At the season ending Torch Championship in Atlanta, McElroy had to dig out as a big hole in credible day, incredible week, you know, four over through two holes, atten shot side of the league at that point. To to call my way back and end up winning the winning the tournament. Um incredible, just uh, just a real um it really probably to my resilience. Rory finished twenty one on the part one by one one eighteen million dollars. Will tonight be the

last time we see Serena Williams. It's her first round match of the US Open, which is the final tournament of her career. John stactually were Boomberg Sports, Nathan all Right, John, thank you sixty seven on Wall Street. Time to take a look at stocks. Some of the names moving in the pre market Bloomberg Radio and TV Markets correspondent Krety is watching a lot of stocks move lower on the back of Chairman Palell's comments cretty, good morning, good morning.

A lot of a broad market sell off, and that really it's going to be the theme of the day. Even overnight in Asia, you did see essentially just investors catching up to what you saw on Friday. So I guess the question is how much of the hangover is going to continue in the equity market. A good proxy for that it's going to be Apple shares a a p LS. You're taker shares down one point two in the pre market. And you love to look at this specific proxy, Nathan, because of course we know the Apple

is going to be the consumer proxy. Everyone uses an iPhone, use the luxury product, especially in the United States, so this is going to be something significant when it comes to the growth of the economy driven by consumer spending. A people also look at it from the rates factor, the idea that higher rate or even a stronger dollar is going to affect the bottom line of a lot of these big tech naimes, not just Apple. And then you have a third kind of proxy here as well.

The idea of that Apple has a lot of exposure to China, so as you see China return to someone that's kind of COVID policy that it had seemed to be loosening just to touch looks like it's going back on it. All of those factors are going to show up in Apple shares right now. So ap l once again as a proxy for broader tech under a little

bit of pressure this morning. Yeah, along with the rest of the tech sector more broadly, interesting to see even when we are seeing all this selling creedy that when you look at our m Live Pulse survey, the latest one, a lot of investors we talked to her thinking the meme stock frenzy is here to stay. Yeah, a little bit of deja vu from the start of one who thought that we would still be here a year and

a half later. Bed Bath and Beyond is serving to be the poster child for that story, at least this time around. B B B. Why is your Taker shares

actually up two point six percent? It really shows you, Nathan, as you justly pointed out that in a kind of market where a lot of risk off sentiment driving a lot of the sales, well, the retail folks are still actually able to push up those single names, and this is going to be significant as we talk about whether or not a rally in the equity market is actually sustainable, because there are arguments and there are some data out there that this last rally that we've seen has mostly

been driven by retail sailors traders excuse me, um, and that is going to actually perhaps not be sustainable as they revert back to investing in single names instead of the macrosphere. Nevertheless, today b b B Y up two point six percent in the last few seconds. Here, crety,

how are crypto related stocks doing? With Bitcoin back below now well back below twenty and some of the pain is being magnified in the cryptocurrency because if you look at what's happening with bitcoin on percentage basis, it's not that big of a move. But then you take a look some of the miners are IoT. For example, for Riot blockchain, it's down three point two percent, and so once again a little bit of a magnification of what

you're seeing in crypto. All right, Bloomberg Radio and TV Markets correspondent Pretty Gupta with us this morning as we continue to watch the selling SMP future down thirty four points. Now, DEALT Future is down two NASAC Future is lower by a hundred thirty points. That's the drop of one percent. Ten year Treasury is down nine thirty seconds, the yield three point one one percent, and the yield on the

two year up to three point four five percent. This is Bloomberg Bloomberg eleven three oh weather turning mostly sunny today, upper eighties, could see a late day shower, otherwise mostly sunny Tomorrow, up eighties once again, and we'll be in the upper eighties mostly sunny Wednesday as well. Right now seventy five degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, at the Bloomberg Business at and at Bloomberg Ricktape. He's a Bloomberg Business

Flash and I'm Karen Moscow, and futures are falling. This morning, we get to the first word breaking news dance for today's morning call, and is Bill Maloney. Bill, good morning and good morning, Karen. That's right. US features are under pressure after Friday self with deaf features down two hundred and fifty two points, says to be dropped thirty five one. NASA futures are down by a hundred and thirty the US ten year old at three point one two percent.

Note the tree yield hit its highest level since two thousand and seven. Gold is down twelve, oil trading higher, and bitcoin falls below twenty thousand. Japan dropped two point six percent overnight, while European markets are also in the red this morning, and back in the US on the

economic front at ten thirty the Dallas Fed. In other news, Goldman Sachs said recent drops in commodities offer a great entry point, while European gas natural gas features plunged twent Wrapping things up, downlink was cut to underweight over at key Bank Live from the First Breaking news desk on Bill Maloney karn all right, Bill, thank you to here live breaking news over your Bloomberg type squawk on your terminal scue you a w K. That's a Bloomberg business flash.

Now here's Michael Barr with more. I'm what's going on around the world. Michael Aaron, thank you very much. A federal judge will hear arguments on Thursday about possibly appointing an autsider to look at classified documents that ex President Trump claims are covered under executive privilege. Separately Intelligence Agency specialists are looking at possible national security risks involved in

Trump's taking and handling of classified material. US Navy warships traveled through the Taiwan Strait for the first time since our Speaker Nancy Pelosi's visit to the self ruled island, testing ties between Washington and Beijing. In baseball, the Yankees lost to the A's four one. The Mets lost along with the Red Sox Orioles and Giants the Nationals one. In the final preseason NFL game, the Jets beat the

Giants seven. Tennis, Today, it's the US Open that starts Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts in more than a hundred twenty countries. I'm Michael barn This is Bloomberg. The following commentary is from Bloomberg Opinion. New York is beating Texas in carbon free electricity, but maybe not for long. I'm Justin Fox,

a columnist for Bloomberg Opinion. New York and other Northeastern states has some of the nation's smallest per person carbon footprints. Residents live less energy intensive lives and work in less energy intensive industries. Electricity generation is light on coal and

reasonably heavy on emissions free sources such as hydropower. Because of nuclear plant closures, the Northeast has become more dependent on fossil fuels over the past decade, though, and a recent M I T study projected that without emission's limits, the region's power supply will just keep getting more carbon intensive. By contrast, Texas, because it's so well suited for solar and wind energy, was projected to see a seventy eight percent decline in carbon dioxide emissions per kilo at hour.

Northeastern states are enacting tough climate policies, so emissions will decline, but it may be tough to keep up with Texas. I'm justin Fox. For more opinion, please go to Bloomberg dot com slash Opinion, where O P I N go on the Bloomberg terminal. These has been Bloomberg Opinion. Bloomberg Opinion commentaries can be heard every weekday at this time, and terminal customers can read more at O P I N Go. It is six fifty on Wall Street and we turned to News and Science and Technology Now with

a Bloomberg and j i T Stem Report. It has brought to you by New Jersey Institute of Technology and j i T is dedicated to bolstering support for female and minority students pursuing careers and high paying STEM industries. Learn more at n j I T dot e DU and Here's what's making news and science, technology, engineering and math.

A few leak interrupted now. This launched countdown for its new Moon rocket early today, reappearing in the same place that saw seepage during address rehearsal back in the spring. Two foot rocket is the most powerful ever built by NASA, howd, muscling even the Saturn five that carried astronauts to the Moon half century ago. This test flight is successful, would put a crew capsule into lunar orbit for the first

time in fifty years. The next launch attempt wouldn't be until Friday at the earliest, and California Governor Gavin Newsom is introduced a bill to keep the state's last nuclear plant open. News argues that keeping pg NS Diablo Canyon plant operating pastage plan closure is needed as the state transitions away from fossil fuels. Still Knewsome fellow Democrats in the legislature are skeptical and if history is any indication,

could be a tough September for Apple investors. The iPhone maker stock has declined in seven of the past ten September since it has lost one point six percent on average. By the way Apples stock climb this quarter is nearly tripled out of the SNPI index and as a Bloomberg n j I t STEM report Nathan all right, Karen,

thank you. We are live from the Bloomberg Interactive Broker Studios or at his six fifty two on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include a bold prediction from Democratic National Committee chairman Jamie Harrison head of the November midterms. The Democrats are gonna keep their majorities in the House, that they're going to grow the majorities in the United States Senate, and we're gonna

pick up some governor's mansions along the way. Jamie Harrison tells CBS has faced the nation. Abortion rights and the new climate and tax law will put voters on their side, but Republican Senator Roy Blunt sees a potential Achilles heel for Democrats in President Biden's student loan relief. I just

thought it was monumentally unfair. Unfair to people who didn't go to college because they didn't think they could afford it, Unfair to people who had paid their loans back, unfair to people who got higher education in an area that the government didn't make loans. But for Progressive Senator Bernie Sanders, I don't hear any of these Republicans walking when we give massive tax bricks to billionaires. We have major corporations, you don't pay a nickel in federal taxes, that's okay.

But suddenly when we do something for working people, and it's a terrible idea. Senator Sanders and Blunt were on ABC's this Week. Also making news, a federal judge leaning toward an independent review of documents taken from former President Donald Trump's home in Florida. That's after a heavily redacted affidavit showed hundreds of pages of highly classified documents seized

there this year. Republican Congressman and Trump critic Adam Kinzinger tells NBC's Meet the Press, if any of us walked out intentionally with even one document from the stiff, which is where we can go see classified documents at And you know, our organization came to us, the House came to us and said you have to give this document back, and we refused to do it for years. We'll be in real trouble. Meet the press this week and face the nation. Can all be heard every Sunday right here

on Bloomberg Radio. Let's get more on all the political news happening this morning from the nation's capital. Bloomberg Government reporter Emily Wilkins joins us, So, yeah, Emily, Democrats are sounding pretty confident ahead of the mid terms. At the same time, one other thing we heard from another the Sunday Shows is some pretty tough talk from a progressive Democrat when it comes to the FED going tough on inflation. Yeah. Senator Elizabeth Warren is not happy with the Fed's announcement

on Friday. Remember John Powell, of course, gave his much anticipated speech in Jackson Hole, Wyoming, and really single that the FED is going to continue it's aggressive series of infest rate hikes and keep rates elevated. Warren says that this is gonna hurt jobs, that this is gonna hurt

small businesses, um. She says that she's worried that this could potentially lead to a recession, and instead of our current economy where you've got high inflation and low unemployment, that you could potentially see a scenario where it's both high inflation and high employment. Now that FED has really pushed back on this idea that they're going to lead to her recession. Atlanta FED President Raphael Bostick, he told Bloomberg Television just last week that the economy has to

weakend first before inflation begins to move down. And so you see the FED really kind of sticking with the plan that they have. But then at the same point, you are hearing, at least from from one senator a lot of concerns that what their moves are are are doing are is actually going to leave the country in the wrong direction. And another point of debate for several other senators, Emily and adding to the debate about inflation is President Biden's student loan relief and whether that's going

to add to price pressures. Absolutely. I mean, you heard those concerns from from economist Larry Summers and Jason Furman, but now you're also hearing them from a number of Democrats were in very tough Senate races. Uh. Tim Ryan, he's running for the Senate seat in Ohio as a Democrat. He accept his distance from Biden throughout most of this race, and he really took the issue of the student loan forgiveness uh to kind of come out and say, look, college is too high. We do need to find a

way to reduce the price of college. Um, but that you know this isn't the way to do it. There's a lot of concern that you know, there are many folks out there who did not go to college, either because they felt they couldn't afford it or because they took a job that did not require a college education. Lots of blue collar workers who are now having to see their take their taxpayer dollars go and forgive folks who had gone to college. It's not just Tim Ryan either.

You've also seen criticism in Nevada. There's a competitive senator race there from current Democratic Senator Catherine Cortez Mastow and also Michael Bennett of Colorado, another sitting Democratic senator, who says that he does not agree with Biden's plan. So this is really something where you are seeing a number of lawmakers in these competitive states kind of recognized that that, you know, this is something they're not going to be

aligned on the administration with. This is something where they are openly pushing back against Biden. It's gonna be interesting to continue to watch that as we get ever closer to the November mid term election. Bloomberg Government reporter Emily Wilkins with us this morning as always, and you can read more about these stories on Bloomberg dot com or on the Bloomberg terminal, and follow all the latest on

Bloomberg Radio in Washington. Bloomberg and one oh five point seven FM HD two markets this morning moving lower, adding to their losses after FED chair j. Powell's hawk ish message from Jackson Hole. We have SMP futures right now down thirty six points, DAL futures down two at sixty five. Nasdaq futures are lower by a hundred thirty four points. The tenure Treasury is down sixteen thirty seconds. The yield three point one zero percent yield on the two year

three point four four percent. Quick look at bitcoins still trading below twenty thousand, nineteen thousand, eight hundred dollars. Bloomberg surveillances. Next for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg