Bloomberg Daybreak: August 30, 2022 - Hour 1 (Radio)

resources for pregnant women. Plus Ukraine has launched a southern offensive. As inspector said to a nuclear plant, I like the bar. More ahead, I'm drying. Stature and sports, Aaron Judges fifty a film, Rod Game, and a Yankee Loss of the Angel. Serena Williams advances at the US Open. That's all trained ahead on Bloomberg day Break on Bloomberg Eliving, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius XM

one nine Team and around the world. Old on Bloomberg Radio dot Com and via The Bloomberg Business. Good morning, I'm Nathan Hager and I'm Karen Moscow u S stock Index futures on the rise this morning. We're coming up to fundle one on Wall Street, and we check the

markets every fifteen minutes through on the trading day. On Bloomberg, SNP futures up thirty five points down, futures of two hundred twenty and Nasdaq futures of one forty four ten year Treasury up thirteen thirty seconds three point oh five percent, and they yield on the two year three point four one percent. And NIMEX screwed oil is down three tenths of a percent Nathan Well, Karen. The rise in futures

follows two straight days of losses on Wall Street. In fact, the SMP five hundred and NASDAC one hundred posted their worst two day tumble since mid June, following FIT chair J. Powell's hawk Is comments on Friday. Aaron Kennon is CEO

at Clear Harbor Asset Management. There has been a belief since perhaps mid June, that the FIT, at some point, perhaps even by the end of the year, would be in a position where they are looking at data and decelerating inflation, and that they may in fact be in a position to pivot, and I think what we heard on Friday was that's not accurate. Do not fight the Fed. You know, if you're predicting a pivot soon, please do

not bet on it. Naron Kennon with Clear Harbor Asset Management says equities could experience a rough patch as the FED continues battling inflation. Well. Investors may have been rattled by the stock market reaction to Powell's speech Nathan. Minneapolis FED President Neil Cash Cary says it was good bye him.

I assumably it was not exciting to see the stock market rallying after our last photo Open Market Committee meeting, because I know how committed we all are to getting inflation down, and I somehow think the markets were misunderstanding that. And I was actually happy to see how share Powell's Jackson Hole speech was received. You know, people now understand the seriousness of our commitment to getting inflation back down to two. Cary said, the US Central Bank is determined

to contain inflation. The most costly mistake we will make is if we get fooled thinking, oh, we've got inflation licked. Now let's go cut interest rates. Because the economy is showing signs of weakening easy. So the way to deal with the lags for me is just to get somewhere and sit there until we're really convinced that we've got inflation licked. Minneapolis Fed President Neil cash Cary made the comments on the Odd Lots podcast with The Bloomberg's Tracy

Alloway and Joe Wassenthal. Listen to the entire interview wherever you get your podcasts well. Interest rates are also in focus in Europe here and ECB Chief Economist Philip Blane is urging a steady pace of rate hikes to fight record inflation. He thinks it will help minimize any negative consequences.

Where we are now, where the polls fate is zero is below annie verse from off the terminal race, we said in July, and it's fairly obvious, and the market believes that the surveys anticipators is there will be a

series of hikes coming off. But of course what the big debate is exactly how high should the accuminated increased fe ECB Chief Economist Philip Blaines comments seemed to push back against some of his colleagues who floated the idea of a seventy five basis point hike at next week's meeting. But the Corporate News now Nathan. Microsoft is outline plan changes to the terms of its software licensing agreements in Europe,

and Bloomberg's Charlie Pellett has that story. It follows complaints to antitrust regulators from some European cloud computing service providers that the company's practices put rivals at a competitive disadvantage. Microsoft says the changes will make it simpler for customers of rival cloud service companies in Europe to move their

existing software to these other networks. It says the new terms will also ensure that cloud partners quote have access to the products necessary to sell cost effective solutions that customers want. In New York, Charlie Pellett, Bloomberg Day Break, All right, Charlie, thanks on the earnings front, we get quarterly results later this morning from best Buy. Bloomberg's Tom

Busby has a preview. After cutting its annual profit and sales forecast in July, It's expected to be a dismal second quarter earnings report from the Minnesota based retailer, as if contends with weakening demand for PCs laptops, and other consumer electronics u S COMP sales forecast to tumble more than eleven percent last quarter. The big focus though, for investors the chain's outlook for the all important holiday shopping season.

Consensus calls for adjusted earnings per share of a dollar thirty eight revenue of ten point three five billion dollars. I'm Tom Busby, Bloomberg Daybreak. All right, Tom, thank you to politics. Now. Bloomberg News has learned the Biden administration is preparing to sell one point one billion dollars in missiles and ratear support to Taiwan. It would be the largest transfer of US weapons to Taiwan in almost two years.

Although the sale does not offer Taiwan any new military capacity, it's still likely to lead to more protests from China. And we're watching for a primetime speech later this week from President Biden and Karen he'll escalate his criticism of what he calls extreme MAGA Republicans. Let's get a preview now from Amy Morris and our Bloomberg newsroom in Washington.

White House officials tell Bloomberg News and in Biden will speak about the battle for the soul of the nation and will warn that the country's core values, including democracy itself,

are at stake. Thursday's address from Philadelphia's Independence National Historical Park will condemn the GOP for what Biden regards is their threats to US rights and freedoms, and sharpen his attacks on Republicans as he works to reframe the mid term elections, which are traditionally punishing for first term presidents. In Washington, I'm Amy Morris Bloomberg Day break Right, Amy Thanks.

President Biden's approval ratings have been on the rise. The poll tracking website five thirty eight now says Democrats are now slightly favored to keep control of the Senate in November. Republicans, meanwhile, are dealing with multiple investigations against former President Donald trumb Bloomberg political contributor Jeanie shehan Zano says the more the former president is in the news, the better it is for Democrats. Republicans know that they would like to turn

their focus on Joe Biden. They'd like to talk about inflation. They'd like to talk about his age. They'd like to talk about a whole bunch of things. They haven't gotten oxygen in the room because Donald Trump takes it all up. Bloomberg Politics contributor Jeanie Sheehan Zeno spoke with our Washington corresponded Joe Matthew on Bloomberg Sound On. Catch the program weekdays at five pm Eastern on Bloomberg Radio Straight Ahead your latest local headlines plus a check of sports. And

this is Bloomberg com Sparing. It's five oh seven on Wall Street where a seventy five degrees in Central Park got some late road work at Scott the northbound New Jersey turned quite car lanes closed between exit six and twelve. With the details Shortland traffic. First, Michael Bars here with what else is going on in New York and around the world. Good morning Michael, Good morning Nathan. New York City will get pregnant women more support and expanded access

to resources. It's an effort to address health disparities and make pregnancy safer. New York City Mayor Eric Adams says that he is signing seven bills into law making pregnancy safer and bridged the gap for maternal healthcare for black women and the numbers of clear Black women are nine times more likely to die of pregnancy. Of your Lady coises than white women in New York City that is

an alarming unacceptable number. Mayor Adams says the bills will do several things, including establishing a maternal Bill of Rights and for women to be free from discrimination. A team lost an arm after an impact in the New York City subway. The fifteen year old's arm was severed after he struck a north bound our train in Jackson Hides, Queens. He's currently in stable condition at Bellevue Hospital. Police at the team is not believed to have been the victim

of a crime, and they're looking at surveillance footage. Ukraine's military says it is advancing in Russian held territory just north of the Crimea Peninsula. Ukrainian forces launched ground assaults in the Kershawon region. It comes as the International Atomic Energy Agency heads to the Russian occupied nuclear power plant to the northeast in Ukraine. There is no safe water to drink from the tap for up to a hundred

eighty thousand people in Jackson, Mississippi. Flood waters from the Pearl River are going down, knocking out the main pumping station. Mississippi Governor Tate reeves we are drafting a state of emergency declaration with regards to Jackson's failure to produce running water, Governor Reeves says that also means there is less or

no water to fight fires and flush toilets. Climate researchers are sounding the alarm morning that Greenland's melting ice sheet will eventually raise global sea levels by about ten inches. According to the report in the journal Nature, The fear now is that it may be inevitable. Author and science journalists Guy Events says, nations have to start planning now for future climate refugees and mass migration. People will not be able to adapt in certain places, they will have

to move. Author Guy Events Global Needs twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists now listen more than twenty countries. High Michael Barr and this is Bloomberg Maintain. Thanks Michael. Front to five ten on Wall Street. Time for the Bloomberg Sports Update. Good morning, John Stanshammer, Good morning Nathan Yankees.

After a couple of losson's in Oakland, began a series in Anaheim and in the eighth inning, a milestone will be one one to judge the pitch swung on a hit deep center field twelve on the run judge number fifty, end of the rock pile in center field in Anaheim. It's four three angels after home run number fifty. Per Aaron John am to call, he's only the tenth player in baseball history to have two fifty home run seasons.

And he gets there before even get into September. And the question now is if Judge Ken break Roger Marris's Yankee and American League record of sixty one homers angels one four three on the show, Ohtani two run homer his twenty nine that came off Frankie Mantash's record with the Yanks in the ages just four and eleven. The Dodgers with a tenant and win in Miami, they've got

a record that's fifty one games over five hundred. Dodgers start a series tonight with the Mets at City Field, where across the parking lot at the US Open last night a hot ticket to see Serena Williams not the final match of her career. She beat Donka Covinet and straight says, so she'll be back tomorrow night for a second round match with a net count of right and

she is the tournament's second seed. The Knicks are said to be close to an agreement with R. J. Barrett a four year, one hundred and twenty million dollar extensions, So if they are to make a trade with Utah for Donovan Mitchell, it will not include Barrett. NFL teams must cut their rosters today, and it's surprise the forty Niners are keeping Jimmy Garoppolo as a backup quarterback. John stash were Bloomberg Sports Nathan Okay, John, Thanks, futures moving

back up. I got SMP futures up thirty points, South futures up a hundred ninety two. Nest At futures are higher by one d eight points, a gain of one percent. Let's in your treasury, you'll right now three point zero five percent. This is Bloomberg Bloomberg eleven three oh Weather mostly sunny, maybe a late day shower going up to near ninety degrees and he showers and early tomorrow clearing eyes in the upper eighties. Sunny, less humid for Thursday.

With the eight five Right Now, markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg quicktape. He's a Bloomberg business flash, and I'm Karen. Moscow stops rising this morning, and US futures are as well as investor sentiments stabilizes following a route sparked by the Federal Reserve signal of a sustained period of restrictive monetary polictic qual inflation, Treasury

yields in the dollar declining. We checked the markets every fifteen minutes throughout the trading day on Bloomberg SNP futures at twenty nine points, now futures up a hundred eighty nast egg futures up one hundred twenty. The decks in Germany's at one point three percent. The ten year treasury of eleven thirty seconds you have three point oh five percent. They yield on the two year three point four one percent.

Nimex Scrude oil is down one point six percent on a dollar fifty and ninety five dollars fifty three cents of barrel comics gold down a quarter percent or four dollars thirty cents at seventeen forty five forty announce. The euro is at one point zero zero three three against the dollar. British found one point one seven four two and the end at one thirty eight point three one and bitcoin is at one point one percent at twenty

thousand and three hundred ninety dollars. Today, we are watching for several reports on home prices at at nine a m. Wall Street time at tennis, a Jolts jobs report, and consumer confidence and best buy in Hewlett Packard Enterprise among companies scheduled to report earnings today. That's a Bloomberg business flash. Now here's Muchael Barr with more unless going on around

the world. Muncle, Good morning, Good morning, Karen. Ukrainian Force has launched ground assaults in the Curson region of southern Ukraine. It comes as an inspector's add to the nuclear plant to the northeast from the latest defensive. President Joe Biden plans to deliver a prime time speech Thursday in Philadelphia, sailing Republicans for what he regards as their threats to US rights and freedom. Retirement will have to wait at the US Open. Serena Williams advanced after her first round

win last night over Nanka Kovin. In baseball, the Yankees lost to the Angels for three, but Aaron Judge did his fiftieth home run of the season, Judge became one of ten players in Major League history with multiple fifty homer seasons. Alright, a run the Red Sox and Giants lost. Global News twenty four hours a day on air and on Bloomberg Quit Take, powered by more journalists endlist, more than a hundred twenty countries. Michael barn this is Bloomberg, Nathan,

the verdict is in. Thank you, Michael. We're coming up to five twenty on Wall Street Life in the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We want to turn now to politics because, as Michael mentioned, we are expecting a rare primetime speech from President Biden later on this week that really could set the tone for the mid term elections. Bloomberg Government reporter Emily Wilkins joins us now, Emily, good morning. As Michael mentioned, the President is expected to

blast Republicans in this address. What more do we know about what the president plans to say on Thursday night? So Biden is dusting off his playbook. He's going to come in and start talking again about the battle for the soul of the nation. He's going to slam Republicans for what he says is a threat to US rights

and freedoms. I think abortion rights, think things that deal with elections, access to elections, access to the ballot box, and think as well the thought addressing the fact that there are still some Republican candidates out there as well as some Republicans who have continually pushed the false claim that the election was stolen. And so expect Biden to mention all of that. This is coming at a point

where things are up for the Democrats. Um, it's still going to be a stretch for them to potentially hold the House, but things are looking much better for them to continue to hold the Senate. UM. Biden's poll numbers have ticked slightly up they were on the love of July. There's still only at pent so less than fifty, but once again better than they were. And so this is really a moment where Biden's trying to seize the momentum to get out there to be in front of the

American people and the message that he's pushing. This isn't a new one. Democrats have been talking about the maga Republicans and the threat that Republicans posed really for months at this point, and I think that the fact the President is really getting out there on the campaign trail kind of shows that we're at the point where things are very much shifting from thoughts of legislating to thoughts of campaigning. We're really going to see things get underway

after Labor Day. It is interesting, though, because, as you mentioned, the Democrats are sort of writing this wave of momentum that's driven in large part, one could argue by the legislative wins that Democrats have seen over the last several weeks. Uh, is there a risk for the president to sort of go back to this message of Republicans being anti democratic, the semi fascism line that a number of Republicans have

seized on is going too far. I mean, certainly they're always going to be criticisms of the president after any sort of speech, and I think that, you know, there's definitely debate to be had over exactly how far there should it should go. Biden came in and really expressed himself as a president who was going to be bipartisan, who was going to work across the aisle. He does have some things he can point to, right He has that infrastructure bill, he has the semiconductor bill. Both of

those were done with bipartisan support. At the same point, when Democrats look at their strategy and look at the playbook, what they see is that what they really need to do is kind of cast the Republican Party as just something that's not in the best interest of Americans. Republicans, of course, have pushed back, saying that if you look at high inflation prices, you look at gas prices that are still a way too high, this is the Democrats fall and they are going to rally behind a number

of policies to really help the economy. Uh, They've been very focused on on the issues. When I've talked to Republican candidates and tried to get them to talk about the election or abortion, they're very quite quickly paid it back to the overall agenda. And that's what Republicans are really banking on in their messaging. In our last minute here, Emily, we've had a pretty significant geopolitical development word of a

pretty sizeable arms sale coming from the US to Taiwan. Yeah, we are hearing that the State Department is prepared to sell one point one billion dollars and missiles and radar support to Taiwan. Now, Congress has to sign off on this package, but it's very likely that they're going to do so given the wide bipartisan support we've seen from Taiwan.

I mean, we've seen a Democratic Senator at Market go there, We've seen Republicans Senator Marsha Blackburn go there just in the recent weeks, and of course there was a Speaker Pelosi's historic trip earlier this month. So you're really seeing this wide support. And this comes at a time where, you know, China and the relationship between Beijing and Washington

has really ratcheted up in terms of tension. China has continued to send warships and aircraft to the Taiwan Strait on a daily basis, and you're seeing this willingness for Congress to continue to engage, even though tensions in the region have been particularly high, even before Speaker Pelosi's trapping and certainly afterwards. Thanks Emily good having on with us

this morning. Bloomberg Government reporter Emily Wilkins keeping track of all the developments for US from the nation's capital, looking at developments on Wall Street. Futures are bouncing back. We've got SMP futures up thirty two points right now, DAL futures highed by two hundred nine NASTAC futures up a hundred thirty four points, and the tenure treasury is up eleven thirty seconds now the yield three point zero six

per cent coming up. More on the market recovery and why one prominent fed voice is saying he's happy about the two day market slide. That's all straight ahead. On Bloomberg Daybreak, Bloomberg eleven three oh weather, sunshine, chance for a late day shower today going up to near ninety degrees, any showers and early tomorrow will have highs in the uper eighties once again, mid eighties, sunny and less humid

for Thursday. Right now seventy five in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living frem to Washington, d C. Bloomberg on to Boston, Bloomberg one O six one does San Francisco, Bloomberg nine sixty to the country, Sirius XM to the one nineteen and around the globe, the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning, I'm Nathan Hager and

I'm Karen Moscow. We are just about four hours away from the open of US trading. Let's get you up to date on the news you need to know. At the sour futures are bouncing back after two straight days of losses. On Wall Street. The n P five NASDACK one hundred posted their worst two day tumbles since mid June. Following a FED chair J Powell's hawkish comments on Friday, Terry Spath, as chief investment officer, was Zumo Wealth, the markets are suits because they're afraid that the FED could

create a hard landing. Looking forward into September, what we're gonna want to try and anticipate is if we see a seventy five bases rise, which I think is a very high probability and increasing probability, is that digested as bad news or as good news? Zuma Wealth ce IO Terry Spath says she expects continued market volatility in the short term. While the market may have been rattled by powell speech care and Minneapolis Fed President Neil cash Car,

he says he was comforted by the sell off. I was actually happy to see how share Pell's Jackson Hole speech was received. People now understand the seriousness of our commitment to getting inflation back down to two. Minneapolis FED President Neil cash Cary spoke on The Odd Lots podcast with Bloomberg's Tracy Alway and Joe Wis and Thal. Listen to the entire interview wherever you get your podcasts well, Nathan.

Interest rates are in focus in Europe. ECB Chief economist Philip Lane seemed to question the idea of a seventy five basis point hike at next week's meeting. We think about the next couple of years, We're not necessarily going to be the longer and study stace. We may have ciclical forces in either direction. Let's say that the policy rates should be evolved in neutual rates. We may have cixlical forces that may say, at the past rates should

be below that race. ECB Chief Economist Philip Lane is urging a steady pace of rate hikes to fighting record inflation. To politics now, Karen Bloomberg News has learned the Biden administrations preparing to sell one point one billion dollars in missiles and radar support to Taiwan, which will likely increase tensions with China. Back at home, Nathan President Biden will deliver a prime time speech this week, escalating criticism of

what he calls extreme Maga Republicans. It comes as the President is seeing his approval ratings improve ahead of a November midter arms. Bloomberg political contributor Genie shehan Zeno says, for Democrats, one strategy will be keeping former President Trump in the news. The political reality is the more Donald Trump is in the news, the better for Democrats. And that's been reality, So you know, the more Trump, the

better for them. Bloomberg Politics, a contributor to Genie shehan Zeno, spoke to Joe Matthew on Bloomberg Sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio, Futures Higher This Morning, straight Ahead, your latest local headlines, plus a check of sports, and this is Bloomberg. Thank you. Caring on Wall Street seventy five degrees in Central Park, got some emergency work in Jersey City, Root for forties

closed both ways at Dan Fourth Avenue. Details and traffic. First, Michael Barr with what else is going on in New York and around the world, Michael Nathan, thank you very much. New York Mayor Eric Adams says he is signing several bills to expand access and resources to pregnant women. Mayor Adams says these bills will promote and expand access to maternal healthcare. From the overturning of Road versus Wade to state efforts to criminalize those who seek abortions, reproductive healthcare

is in danger. The health choices should be made by women and their bodies. They should make the decisions on these important medical moments. Me Or Adams says, one of the bills established as a maternal Bill of Rights. More bus loads of migrants are coming to New York City today from Texas. The city continues to try and find

places for the asylum seekers. Authorities say of the twenty year old who opened fire in a band Oregon supermarket, killing two before he turned the gun on himself was a loner who was known for getting into fights at the high school where he graduated in Meanwhile, the vigil was held last nine for the victims who were shot at the Safeway store Sunday night. Flooding has caused a worst case scenario to hit the drinking water supply for Jackson, Mississippi.

One of the main pumps at the city's main water treatment facility failed earlier than predicted. The city can no longer provide enough running water for everyone. Mississippi Governor Tate Reeves, Please stay safe, do not drink the water. In too many cases, it is raw water from the reservoir being pushed through the pipes. Governor Reeves says. Jackson's mayor declared a state of emergency. Ukraine's military says it is advancing in Russian held territory just north of the Crimea Peninsula.

President Zelinski didn't talk specifically about the operation there in the region. He said Ukrainian forces were retaking this country's territory and he had a message for Russian forces. If you want to survive, it's time to flee. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and analysts more than a hundred twenty countries. At Michael bar This is Bloomberg. Thanks Michael wall Street. Time for the Bloomberg Sports Update.

Here's John Stesshower. Thanks Nathan Night of home runs, the Yankees and Angels and Anaheim. The Angels hit three won by x Yank Mike Ford and other by show Hey O Tony two runshot his twenty nine. Yankees got solo home runs from Anthony Rizzo fourth fitting his twenty nine and then in the eight patented Aaron Judge blast a straightaway centfield Judges fifty at home. Ron Wickhams, only the ten to have done it twice for the Angels won four three. The Yanks thirst day loss after winning five

in a row. The Mets were off. They host the high flying Dodgers tonight. L as on the last thirty one. Serena Williams has never actually used the word Retiringngine missed it being vague, said last night she'll continue to be vague in her career. Definitely not over yet. You want her first round match the US Open, straight sets over Donka Ka Vintage, much to the delight of a big crowd. When I walked out the the reception was really overwhelming.

Um it was, it was loud, and it was it was I could fill it in my chest and it was a really good or you'll be back tomorrow and I for figures would be a tougher match with second seed in net contivit opening day upsets. Dominic team who won the Open two years ago, lost, so did fourth seeded Stefano sits upast Taylor Fritz, the highest seed American, beaten by fellow American Brandon Holding, the son of one time US Open champ Tracy Austin. Simona hallup stunned by

Darius snygera twenty year old from Ukraine. She's a qualifier. She had never before won a professional match. R J. Barnley twenty two years old, and yet on the verge of a contract extension with the Knicks four years, one hundred and twenty million dollars. John Stashdward Bloomberg Sports Nathan. Thanks John. It's five thirty seven on Wall Street time for the Tri State Business Report. Here's Bloomberg sad Cory. New York City continues to be the priziest place in

the country to be a tenant. Median one bedroom rent for August is up forty percent here over here. That's according to the Zumper National Rent Index. Medium rent for two bedroom apartments was up about forty seven percent. Manhattan leads the Burrs with monthly rent climbing to hundred twelve dollars. New Jersey is cutting an automotive fuel tanks by one cent per gallant after consumer demand was higher than expected.

Petroleum products gross receipt charge will drop to thirty point nine cents for gasoline thirty four point nine cents for diesel. In October, as tennis icon Serena Williams prepared for her final US Open tournament, she also readied herself for the next stage of her career away from the tennis court. William says she'll focus on her family and her venture capital firm after tennis. That your Bloomberg Trying State Business report.

I'm in Corey, thanks said, It's on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. On wh F and Louisville, toyotas Global output Frank for a fourth straight month. On the semiconductor shortage, I'm Steves Podascan

on K and X in Los Angeles. We're talking about California, not exporters turning to the Port of l A as an alternative to the backed up Port of Oakland. I'm callin head gom PIMPEG DAB digital radio in London. We're putting on British pubs on the brink of going bust without support for energy bills. Just the latest sector demanding more government help. I'm in Corey on w J in Detroit. I'm rewarding Michigan Red Durant who still having enough time

finding workers. Those are some of the stories our twenty hundred Bloomberg journalist and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. As Russia's war with Ukraine, plants on a pencer movement is advancing towards

British households this winter. The price of natural gas so skyrocketed since the invasion, boosting electricity costs and pushing up prices from manu acturing inputs, food and pretty much everything else. With UK energy demands set to rise in the colder months, the financial pressure on millions of households could soon prove intolerable. Unfortunately, this looming emergency has gotten too little attention during the

Conservative Party's leadership race. The winner of the election will need to deliver both short term relief and longer term reforms to bolster energy security. By any measure, Britain is likely to face a long hard winterer. The next Prime Minister will need foresight and ambition to forestall the worst. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or ope I n go on the Bloomberg terminal.

This has been Bloomberg opinion and you can hear Bloomberg opinion editorials every week at this time. Terminal customers can read more at op I n go Latin. Two days slide following Chairman Powell's comments, Futures are moving higher this morning. SMP futures are up thirty seven point, Staff futures up two one. NASTAC futures leading the games this morning, up a hundred fifty one points. Steed Wack, chief investment officer

at Flow Bank, joins us next. This is Bloomberg Bloomberg eleventh three oh Weather sunny, chance for light day shower today, upper eighties for highs and he showers and early tomorrow clearing highs in the opper eighties once again, sunny, less, humid, mid eighties for Thursday. Right now seventy five in Central

Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business at and at Bloomberg Quicktape is a Bloomberg Business Flash and I'm Karen Moscow stops other rise this morning along with you as Stoock Index futures has investors sentiments stabilizes following our routes sparked by the Federal Reserve signal of a sustained period of restrictive monetary policy to quel inflation. Treasury yields

and the dollar are declining. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures are up thirty five points this morning, DEW futures up two hundred thirty two and NASDACK futures up a hundred forty four. The decks in Germany's at one point seven percent, the ten year treasury of eleven thirty seconds. You three point oh six percent. They yield on the

two year three point four zero percent. Night mack screwed oil is down one point nine percent on a dollar eighty and ninety five dollars twenty two cents of barrel. Comic School that a quarter percent or four dollar sixty

cents is seventeen forty five ten announced. The euro one point zero zero three five against the dollar, the British pound one point one seven three three and the yen one thirty eight point three seven and bitcoin is up one point two percent at twenty thousand, four hundred dollars. Now's at Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank

you very much. Karen You. Military says it is advancing in Russian hell Territory just north of the Crimea Peninsula. It comes as the International Atomic Energy Agency heads to the Russian occupied nuclear power plant to the northeast in Ukraine. Tony Ronado, the senior Secret Service official whose name was at the center of controversy during the January six hearings, has retired at the US Open Hold on retirement. Serena Williams advanced after her first round win last night over

Danka Kovinich. In baseball, the Yankees lost to the Angels four three, but Aaron Judge hit his fiftieth home run of the season. Judge became only one of ten players in MLB history to have multiple fifty homer seasons. The Red Sox and Giants lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists analysts more than a hundred twenty countries. Michael bar this is Bloomberg Naked and it's

not even September yet. Thank you, Michael. It is on Wallst Live from the Bloomberg Interactive Broker Studios. This is Bloomberg day Break. Let's jump into these markets now. Sti Dwek joins, us chief investment officer at Flow Bank. St Good morning. We're seeing futures rise after the two days slide following Jackson Hole. Do you buy this step? Good morning? UM?

I think I would. Um. You know, there's a lot of talk about this FED pivot that wasn't happening, but I don't think we were ever going to get an actual pivot. The market wasn't expecting the Fed to start cutting now or to stop hiking. The FED is clearly past the most aggressive part of his tightening cycle. We're probably going to get fifty basis points unless we get a really bad inflation number for August, which indicators don't seem to be pointing that way, and then we'll have

a couple more basis points. But we're moving intour into the end of the tightening cycle, and I think the FED needed to re anchor those medium to long term expectation sins reaffirm it was going to keep fighting inflation because it felt the market maybe got a little too complacent over the summer. But I don't think this speech should be that much of a surprise and change the perspectives. And you can see you didn't see that much of a move in the bond market. You're getting right into

the heart of the debate, aren't you. Whether the Fed is going to pivot I guess to slower rate hikes. Dig a little deeper into your call here, Why do you think the Fed is going to start slowing down next month? We saw in the July minutes that they know it takes three to six months for the rate hikes to feed through into the economy. We started to see a couple of data points showing that growth is gradually slowing, although not yet so much in the labor

market of course. And we're continuing to get these disinflation indicators. Hopefully August comes in lower than July. And again, most of these indicators are pointing that way. One month doesn't make a trap, and but two, three, four months in

a row. If this continues into the end of the year, that gives a little confidence that inflation is coming down, and they need to let the big, big rate hikes that they did in the second and third quarter have an impact on growth, bring demand down slowly, and let that feed through into next year. I'm sure by now you've heard the comments to our Odd Lots podcast here on Bloomberg News from Minneapolis FED President Neil cash Cary saying that he was pretty happy with the market reaction

following Chairman pal speech on Friday. He says, it's a sign that the message from Powell on higher for longer rates was received by markets. Is the market sending a different message here, I don't think. Again, if you look at the bone market, you had more of a reaction before the speech, then after the terminal rate didn't change

so much. The odds of seventy five basis points versus fifty for September went up, but they sort of retreated already since I think the Fed also wanted to send a message that the rate cut expectations that were coming in sort of earlier and earlier in three weren't going to happen. So I'm not sure it was so much

about September or into the end of the year. I think it was a view that they are going to get restrictive, as we've already known, and they're going to stay restrictive for longer, and even if growth slows, it's kind of what they're hoping for. So they're not going to jump in at the first sign of a disappointing non farm peril's number or a softer p m I number.

They're going to stay tighter for longer. So, given all that you're saying here, I see in our last minute or so, how are you advising your clients to add to risk? Are you making a certain recommendations on sectors or styles through the rest of this year. Well, we think that technology is going to resume its out performance in the coming months and lead the market higher into

the end of the year. Now, it doesn't mean we don't get more speed bumps like we did just now, and September for sure can be tricky at least at some point uh during the month. So it's not there's certainly no all clear signal, but some of these more some of the cyclical sectors should start to recover if growth holds up. And again I think technology growth and earnings are going to continue to support the sector and

that will help lead the market higher. Great to get your thoughts this morning, St. Thanks for this, really appreciate you joining us. That's St. Dwack, chief investment officer at Flow Bank. Karen. All right, Nathan, it is Stroctor three on Wall Straight time for the Bloomberg The Law Report. Let's get to the llegal stories we're watching this morning.

From Bloomberg's Jeff Bellinger. A federal judge in Pennsylvania rejected Walmart's attempt to dismiss part of a lawsuit to ldging that employees were not paid for working through meal breaks. A former New York City police officer filed the federal lawsuit, charging that his dismissal over his personal relationships with Roger Stone and members of the Proud Boys by lated his rights. Kaeshiva University is asking the U. S. Supreme Court to intervene in a dispute over the establishment of a pied

student group. It is the latest national legal clash over LGBTQ protections and the free exercise of religion. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, thank you. Now

another legal story we're watching this morning. The US Department of Justice said it already screened documents seized from Donald Trump's Florida home for attorney client privilege, potentially counting doubt in the former president's lawsuits seeking third party review of the records. For more, Bloomberg News legal reporter Zoe Tilman

joined Kimberly Robinson to discuss the new developments. You know, we learned a couple of key things, the first being that investigators are quite far along in going through the documents that received to the point that they could tell a judge in Florida their privileged team had gone through the documents that were seized had identified that some were potentially attorney client privileged material, and that they were already going through the process that they had previously laid out

for what to do with that information. It was a strong suggestion to the judge perhaps that this is all moot and far too late in the game to bring in someone now to to unring the belt of giving investigators access to these documents. So, putting aside the special master issue, what's the normal procedure that the d o

J goes through when dealing with privileged documents like this? Yeah, so it's pretty common for a federal investigation, especially one like this, to have what's known as a taint team or filter team or privileged team, which is a collection of usually FBI agents and prosecutors who are not the

lead prosecutors in case, agents and an investigation. And the purpose of that is so that the folks were ultimately prosecuting the case, they don't see something that could get them disqualified or knocked out of the investigation at some later critical phase or i think, worst case scenario for the Justice Department, jeopardize the entire integrity of the investigation.

Was less clear here is uh this the concept of executive privilege and whether that type of privilege is something that the Justice Department could or should filter for as they're going through these documents. That's not typically what a taint team would be looking for. So that's a big question mark, and the Justice Department did not address that issue, which Trump has raised in the filing today and as Bloomberg News legal reporter Zoe Tillman speaking to Kimberly Robinson.

Catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b law Go. And we can look at the markets

this morning. The futures on the rise. SNP futures up about thirty six points down futures have two hundred thirty one and NASTAG futures have a one hundred forty five or about one point two percent. Ten Your treasury is up ten thirty seconds. He had three point oh six percent. They yield on the two year three point four zero percent nine x screwed. Oil is falling down one point seven percent at a dollar sixty seven at ninety thirty

four cents of barrel comes. Gold is down to ten percent or three dollars ten cents at seventeen forty six sixty an ounce. The euro one point zero zero three three against the dollar, the en one thirty eight point three four and still ahead on Bloomberg Daybreak and check on the business headlines and all the news you need to start your day. And this is Bloomberg