Bloomberg Daybreak: August 30, 2022 - Hour 2 (Radio)

futures up two points. As if he's gained thirty three one nest that futures are up by one two he was ten year old. At three point oh six percent, Gold is little changed, oil is in the red, and bitcoin is traded higher by one point four percent. Japan rose one point one percent overnight, while European markets are also in the green this morning, and back in the US. On the economic front, at nine o'clock, the House price Index and at ten o'clock, consumer confidence in dean lows.

Elon Musk sent a letter to Twitter, adding to reasons to terminate the deal, and you have politics. The U S is for Parent to sell one point one billion in missiles and radar support to Taiwan. In other news, Goldman Sachs said the downturn in the US housing market has further to run and wrapping things up still there was raised to neutral. Well read Hip Morgan Live from

the First to Breaking News descom Bill Maloney. Karen, all right, Bill, thank you while you mentioned that letter from Elon Musk to Twitter. Twitter shares or down one point two percent in early trading right now, and we continue to watch Tesla up two point three first cent. And here live breaking news over your Bloombergy type squawk on your terminal scue you a w u K. That's a Bloomberg business flash. Now here's Minchel Barr with more on what's going on

around the world. Michael, Karen, thank you very much. Ukrain's military says it is advancing in Russian held 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 Ornado, the senior Secret Service official whose name was at the center of controversy during the January sixth hearings, has retired at the US Open Serena Williams, who announced this will likely be her last open Advanced after her first round win last night over Donavin. In baseball, the Yankees lost to the Angels for three, but Aaron Judge hit his fiftieth home run of the season. Judge became one of ten MLB

players to have multiple fifty homer seasons. The Red Sox and Giants lost. Global Needs twenty four hours a day on here and on Bloomberg Quick Takes, powered by more than hundred journalists and analysts more than a hundred twenty countries. Michael Barn, This is Bloomberg, Karen Orry, Michael Barr, thank you at a sixte on Wall Street, and we turned to news and science and technology now with the 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 in high paying STEM industries. Learn more at n j I T. Dont e d U and here's it's making news and science, technology, engineering, and math.

China's battling COVID in every province, despite its use of the world's strictest measures to keep the virus out, all thirty one mainland provinces recorded at least one local COVID case over the past ten days. That's the broadest exposure to the virus since early. Restrictions have been increasing around Beijing and in Shenzen, China's southern technology hub. The European Union is set to meet its gas storage filling goal

two months ahead of target. The block is bracing for a tough winter with Russia limiting supplies and energy prices. Soaring gas storage helps absorb supply shocks and provides up to of the fuel consumed in winter and South Korean battery maker l G and Japanese automaker Honda are investing four point four billion dollars and a joint venture in the US to produce batteries for Honda electric vehicles in

the North American market. The planned side is still undecided, but construction will begin in early three with mass produce. Should not have advanced lithium I on battery sales to start by the end of and as the Bloomberg n

j I t STEM report Nathan, thank you, Karen. We are live from the Bloomberg Interactive Brokers studios where it's just about six fifty one on Wall Street now it's time to check what's going on in VC, where some of the top stories include President Biden preparing a rare prime time speech on the threat he sees from the Republican Party, the Biden administration getting set to give one point one billion dollars in arms sales to Taiwan, the

Justice Department raising doubts on former President Trump's Special Master request, and the Secret Service agent at the center of January sixth testimony resigning Bloomberg. Government reporter Emily Wilkins is back with US now for more on some of these stories. Emily, the President is going to be spending a lot of time in Pennsylvania over the next two days. He is, He's gonna go back to uh, back to his roots.

He'll be in Wilkes Bar today. He's also gonna have Pittsburgh and then of course his big prime time speech this Thursday in Philadelphia. Pennsylvania, Nathan really really critical state for the upcoming midterms. And not only is there a competitive governor race there, which of course really doesn't decide the balance of Congress, but could meet a lot to Pennsylvanians. UH, there's also a competitive Senate race and numerous competitive House races.

He's headed up to Congressman Matt Cartwright's district today. He's a Democrat who has got elected several times in a Trump district, but of course this year as they're not in democrats favor. So this is really part of Biden get trying to get out more on the campaign trail. He said he was going to do this at the beginning of the year, to get out more, to talk

to the public more. There's a sense that Biden does better when he is away from the bubble that is Washington, d c. And is actually kind of able to get out and talk with folks one on one. So definitely expect to see more of that as we get closer to the election, and it will be very interesting to hear his speech tonight. You know, Biden kind of presented himself as a candidate, the Democratic candidate who could work with Republicans, who could build bridges, make things happen, and

to an extent he has. But he's also trying to at the same time push this message that Republicans have become too radical and that they are now a threat to democracy. He's dusting off that playbook and expect to kind of hear more about him sort of pitching Democrats as as the party that you know, would would save Americans and continue democracy and set that at odds with Republicans.

It is the playbook, as you mentioned, Emily, I guess the question is whether that kind of playbook is gonna work for congressional candidates on the Democratic Party looking to take or keep control of Congress in two Well, certainly a number of them are leaning in that direction. Wouldn't you talk with the head of the Democrats campaign arm,

Congressman Sean Patrick Maloney. I mean, every time I've talked with him, it's it's almost like you can like count the number of times that he says mega Republicans, Like that's just become a part of his speech now. And even when I went up to Congressman mac Cartwright's district in the last couple of days and spoke with him, you know, he very much tied his Republican opponent to

more extreme policies, particularly those on abortion. That's really something that Democrats see as a winning issue for them, especially if they can paint Republicans as being pretty radical on that and not having any sort of exceptions. Uh So, that's something that that Democrats are really focused on right now, and it's something that they do believe could make a difference for them when it comes to keeping the House and keeping the Senate. Let's turn to geo politics. There's

a lot of focus right now still on Taiwan. Emily, Yes, we've got since speak House speaking, Nancy Pelosi went on that trip. We've seen other lawmakers from both sides of the aisles. Senator Ed Markey a Democrat, Senator Marshall Blackburn a Republican, go ahead and visit the island. We also just have a new alert crossing the terminal that Arizona's governor uh Doocy is going to be visiting Taiwan and

meet shipmakers there. And this also comes as the White House is planning a one point one billion dollar in missiles and surveillance radar to Taiwan. This is the largest sense Spliden took office. These aren't any sort of new weapons, that doesn't really change Taiwan's capabilities as far as military is concerned, but it really continues to kind of send a strong message to Beijing that the US is supportive of Taiwan. And it comes, you know, as there are

height intentions. China's has continued to send warships and aircraft into the Taiwan straight. Remember there were those missile launches and flyovers after Pelosi's trip. Uh, So certainly the there's there's been no sort of de escalation from from Washington. They have you know, continued to show their support for Taiwan. Uh,

with this missile sale of course being being the latest. Yeah, we've had some developments as well in the FBI search at Mara Lago, former President Donald Trump's home and the classified material found there. What's the latest when it comes to the former president's request for an independent review of the documents. So there was a federal the federal judge has kind of been open to his request to have this third party, the special Master, reviews some of the documents.

But the Justice Department came out and said that it's actually already screened the documents that they got from mar Lago. Uh. Potentially, you know that that might sort of eliminate the need for a third party to sort of look over and say, you know, this is something that the FBI should have and this is something that they shouldn't. Frump's really kind of pushed back on the documents that that were taken

from his home. We still don't have a good sense of exactly what they contain, but it is clear that you know, this is certainly a part of a wider Department of Justice investigation. UM, and this was something that will probably continue to play out in the news. UM. Certainly just just a huge story, lots of unprecedented parts in here, all right, Bloomberg Government reporter Emily Wilkins keeping on all the developments in the nation's capital for US. Emily,

Thanks as always. Read more about these stories on Bloomberg dot com or on the Bloomberg terminal. And a reminder, you can follow all the latest on Bloomberg Radio in Washington Bloomberg and one oh five point seven fm h D two a red headline just across the Bloomberg terminal.

The National Congress of the Communist Party of China is going to hold its leadership selection meeting October sixte Chinese President Shi Jinping is expected to his extent his decade in power at that event, with an unprecedented third presidential term. This was all according to the shin Watt News Agency.

And we're still keeping an eye on Twitter and Tesla shares, with Elon Musk putting in that new filing sitting a whistleblower claim as another reason why he should be allowed to back out of his forty four billion dollar takeover offered. Twitter shares right now down one in the third percent. In pre market trading, Tesla is moving higher by a bit more than two percent. Futures moving higher as well. SMP futures up thirty four points, Staff futures up two

twenty two. Nastack futures are higher by one hundred forty three points. Bloomberg Surveillance is next with Tom Keene, Jonathan Farrell, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hager, and this is Bloomberg broadcasting live from the Bloomberg Interactive Brokers Studio in New York. Bloomberg and Loving Free to Washington, d C. Bloomberg to Boston, Bloomberg one O six one

to San Francisco Bloomberg No. Sixteen to the Country Sirius XM Chado one nineteen and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It is six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow. We are just about three hours away from the open of US trading. Time to the five things that you need to notice start

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dot com. Slash compare well at first. Twitter shares are down one percent in early trading after Elon Musk sent a termination letter to Twitter, as the test La founder tries to back out of his deal for the social media giant. Meanwhile, Tesla shares are higher, up two point two percent in early trading. As for the broader market, Karen futures are bouncing back following two straight days of losses on Wall Street following Fed Chair J Powell's hawk

ish comments Friday. Terry Spath is chief investment officer at Zooma Wealth. The marketer as spooks 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 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? ZOOMA Wealth ce io Terry Spath says she expects continued market volatility in

the short term. Well, the market may have been rattled by Powell's speech Nathan. Minneapolis Fed President Neil cash Cary says he was comforted by the sell off. I was actually happy to see how share Powell'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 made the comments on the Odd Lots podcast with Bloomberg's Tracy Alloway and Joe Washenthal. Listen to

the entire interview wherever you get your podcast. Interest rates are in focus in Europe here and ECB chief economist Philip Blaine seems to question the idea of a seventy five basis point hike next week, He's urging a steady pace of increases to fight record inflation. To politics now, Nathan, President Biden will deliver a prime time speech this week, escalating criticism of what he calls extreme mega Republicans. It comes as the president is seeing his approval ratings improve

ahead of the November midterms. Bloomberg Political contributor Jeanie sheehan Zeno says, for Democrats, one strategy will be keeping former President Trump and 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. And Bloomberg Politics contributor Jennie Sheehan Zeno spoke to Joe Matthew on Bloomberg Sound On Catch the program weekdays at five pm Eastern on Bloomberg Radio.

And that's the five things that you need to know to start your day, brought to you by Interactive Brokers, straight ahead, your latest local headlines, plus a check of sports. And this is Bloomberg. Thank you. Karen sixty three on Wall Street, seventy five degrees in Central Park. Kind of broken down vehicle headed the JFK Airport. It's on the southbound van wake at Linden Boulevard. More coming up in traffic. First, Michael Barr with what else is going on in New

York and around the world. Good morning Michael, Good morning Nathan. New York Mayor Eric Adam says he is signing several bills to expand access and resources to pregnant women. Mayor Adams says these bills will promote annex fan access to maternal healthcare from the Overturnyi Road vertss 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. Mayor Adams says one of the bills establishes 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. Mayor Adams says more than seventy migrants have

arrived in New York from Texas. Authorities say the twenty year old who opened fire in a Bend, 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 me And. While a vigil was held last night for the victims who were shot at the Safe Waste store Sunday night. Reverend Erica's Spade attended the vigil. Is stead growing um dissatisfaction with why should we be afraid to go to the

grocery store? Why should be afraid to send our children to school? And so um deep grief but also deep anger. Two others were wounded in Sunday shooting. Flooding has caused a worst case scenarioto 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 Zelenski 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 Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Thanks Michael. Almost six thirty six on Wall Street, John stash hours got the Bloomberg Sports updates thanks to day Than. It was a night of home run so the Yankees and

Angels and Annahan. The Angels had three, won by x Yank Mike Ford, another by show Hey Otani two run shot his twenty nine. Yankees got solo home runs from Anthony Rizzo fourth inning, his twenty ninth, and then in the eighth a patented errand Judge blast is straightaway center field judges fifty f home run. He becomes only the ten to have done it twice. For the Angels one four to three, and it's the Yanks third straight loss after winning five and row. The Mets were off. They

host the high flying Dodgers tonight. L A comes in having won in the last thirty one Serena Williams has never actually used the word for retirement. She admits to being vague. Said last night k to me to be vague, and her career is definitely not over yet. She won her first round match with the US Open straight sets over Donka Covinage much to the light of the Big Craft and 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 filling. Very We'll be back to mar and I went for what figure would be a tougher match in the second round with second seed, and that count divide opening day upsets, plenty of them. Dominic team, who won the Open two years ago, lost, so did fourth seeded Stefano sits Upon Taylor Fritz, the tenth seed, highest American seed. He was beaten by another American, Brandon Halt.

He's the son of one time US Open champ Tracy Austin. Simona Hallet stunned by Darius Snygora, twenty year old from Ukraine. She's a qualifier. She had never won a professional match before. R J Barrett on the verge of a big contract extensions with the next four years a hundred and twenty million dollars. Don Stashar Boomberg Sports, Nathan all Right, John, thanks six seven on Wall Street. Time to take a

look at stock. Some of the names moving in the pre market with Bloomberg Radio and TV Markets correspondent created Gupta and all of a sudden createy Tesla and Twitter shares are on the move. They are, They're back in the news, back in focus. Really, just moments ago you had Elon Musk sending a letter to Twitter adding reasons to terminate the deal. Now, remember this is the other two companies that are starting to deal with the legal fallout.

A lot of this has is expected, I should say, to end by October a five day trial, I believe, which is what Twitter had advocated for Elon Musk, Gett advocated for more time. Ultimately, the judge had favored in Twitter's favor. So as we start to see some of these developments in the court case, uh, the stock is likely to move and that such development is coming out

this morning. Elon Musk, like I said, sending a letter to Twitter, adding recent allegations from a Twitter whistleblower on further reasons why he believes he can cancel his forty four billion dollar deal with the social media company. Musk lawyer so that they wrote the additional termination notice in the event that the July eight termination notice was determined to be invalid for any reason. So here's what he added on Nathan. He said there's no alleged violation of

a consent degree with the FTC. He says that they're sec filing containing alleged untrue statements around privacy and data protection, failure to discuss conduct from the CEO Parague Auger Wall, as well around statements he had made to his Twitter's board. He's also talking about resulting lawsuits from the whistleblower complaint and alleged intellectual property infringements. That's a lot of legal talk for saying there is way way more that Elon Musk has in his toolbox here to throw a Twitter

to really to to end this deal. And really, after we saw those headlines, Twitter shares actually dropped there down at one point four percent. And this is interesting because that negative correlation between Twitter and Tesla it is still there because though when Twitter shares drop, Tesla shares rise, and Tesla shares are indeed up two point three percent. Yeah, it's interesting to watch as well, and it's going to make that dell we're hearing all the more interesting to

keep an eye on as well. And I know you're keeping an eye on Meme stocks again this morning, creating. I mean, it's kind of wild where I'm having a really severe bat of deja vu here, Nathan, because Bed Bath and Beyond once again, it is up, and it's up by a lot. Remember it is in line with the broader market. You are seeing the entire market rebound.

The Bed Bathroom Beyond is going the extra mile here, up about ten percent in pre market trading b b B. Why is your taker once again no real newspack, So that really screams retail trader to you. And they are showing up in lines of Bed Bath and Beyond. The question is doesn't show up on the macro front all right? Bloomberg Radio and TV Markets correspondent Crety Gupta keeping an eye on a lot of name by name volatility this morning,

for sure. Looking at the broader market. We're seeing that bounce back following the two days slide from FED chair j Pal's comments at Jackson whole SMP futures on the rise now by thirty four points. Staff futures up two or twenty NASTAC futures leading those gains up a hundred forty five points. The tenure treasury is up ten thirty seconds. The yield three point zero six percent. Yield on the

two year right now three point four zero percent. And you're listening to Bloomberg Daybreak Bloomberg eleven three oh weather, mostly sunny, chance for late they shower, upper eighties. Showers lend early tomorrow, clearing, hides in the opper eighties once again, sunny, less, humid Thursday, high near eighty five right now seventy five in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business

at and at Bloomberg Quicktake. This is a Bloomberg Business Flash. And I'm Karen Moscow, and we continue to watch shares of Twitter this morning. They're down almost two and a half percent in early trading. Ys Elon Musk sent a letter to the social media company highlighting additional reasons to terminate a merger agreement. Test Las shares meanwhile, are rising this morning, up more than two percent. Future is on the rise of this morning as well. S and P

future is up thirty five points down. Futures have two hundred twenty four nasday futures have one hundred forty six and we check the markets every fifteen minutes throughout the trading day. On Bloomberg ten, your treasury up ten thirty seconds. You have three point oh six percent. They yield on

the two year three point four zero percent. Nine Mack screwed oils down one point six percent on a dollar fifty five at ninety five dollars forty six cents of barrel call make schooled at a quarter percent, or four dollars thirty cents at seventeen forty five forty announced. The euro is at one point zero zero four two against the dollar, British found one point one seven to eight and the yen one thirty eight point three one. And bitcoin is up one point three percent at twenty thousand,

four hundred fifty dollars. That's a Bloomberg business flows. Now here's Michael bar with more on what's going on around the world. Michael Karen, thank you very much. Ukrainian forces launched round assaults in the Curson region of southern Ukraine. It comes as inspector's head to the nuclear plant to the northeast from the latest offensive. President Joe Biden plans to deliver a prime time speech Thursday in Philadelphia the 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 hit his fiftieth home run of the season. Judge became one of ten players in Major League history with 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 twenty seven hundred journalists analysts more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan. Thanks Michael. It is six nineteen on Wall Street Live

from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak or pleased to be joined this morning by Mark Vitner's senior economist at Wells fargo as we continue to kind of assess the market reaction to FED chair j Pale's hawky ish tone at the end of last week at the Jackson Hoole Economic Symposium, Mark, good morning. Do you think the market has fully priced in what FED chair pal had to say about higher for longer interest rates? Well,

I think we're getting there. It's um, we probably still have a little ways to go. I think the folks who are underestimating how much more the FED is going to have to do to bring inflation down, they don't have to do it all at once. And I think that everybody's gotten hugging upon whether they're gonna go fifty or seventy five in September. And the real question is do they go to four or are they gonna have

to go higher than four percent? And how long are they going to have to hold interest rates that high? And I think the message from from Jackson all was, you know, we're not quite sure ourselves, but it's probably gonna be for a little bit higher than four and don't count the rate cuts next year, and so rates are going to be a little higher for a little longer.

And I don't think that's fully priced it. What do you think the Fed has to see to get to a point where it can say that we can at least start slowing down the pace of rate hiks, Well, I think they have to have a better idea that the that the economy's momentum has slowed away, that aggregate demand is going to cool off inflation, and I think

we're making progress on that. And a lot of people are probably scratching their heads and say, wait a minute, we had two declines in GDP in the first quarter and second quarter. Isn't that enough And those declines are a little lousory. I think that we're going to see later in September and September twenty nine we get the benchmark revisions. The g D gigros was actually positive in the first two quarters of the year, so that we are losing momentum, but we're coming from a little bit

more strength than people accounted for. Counta on the employment

numbers have been real strong. We still see a lot of pressure on wages, so we probably need to see a definitive rollover in wages before the FET is going to feel that they can at the at the at the end and their eight heights is is in sight, and then we need to see some improven on the supply side, which the set has less control over um in terms of the supply chain bottlenecks and and and seeing agget production pick up in the US, and that that's going to be longer that that imbalanced thems like

it's going to carry well over into three fed. Chapel did put a lot of emphasis on the tightness of the labor market in his speech on Friday. Do you think we're going to start to see some signs of that rollover and wage price pressure in the print that we get on Friday. We're not looking for for it there, although I do think that that there that we were topping out. We're looking for about a half a percentage quite increase in average early earnings and should be up

about five three percent year to year UM. It's probably too soon, although we are seeing some improvement. You know, anybody who's taken over or or lift, we'll see that there's been a notable increase in drivers coming back, and so I think that's a that's one of those real life things that you can that I think handsome carry over to the broader economy. And you think people are

coming back in the workforce. It may be though, that they're coming back because they're getting squeezed by by higher food dinner two prices and they they need a little bit more bit more income. We got about a minute left here, Mark, what kind of economic impact are you looking for from the Fed? Beginning it's balance sheet online this week? Well, they in terms of their their balance sheet online, and this is uh at an ongoing impact

on the market. And we've seen that the spread on mortgage rates relative to the tenure treasury as has wide and considerably. And I don't know that all of that is because of me, just a patient of the FED reducing their mortgage holdings um in the but but I know some of it is. And the mortgage market and housing is the biggest transmission mechanism for one of the biggest picture transmission mechanisms for monetary policy, and that's one

part of the accounty that has clearly slowed. And I think what we'll see some evidence of that in the case showing numbers that come out this morning that home prices have clearly rolled over and most of the country is now seeing a great kill of discounting in the housing markets. So so the balancing runoff is having an impact. Mean, it's one of the one of the things that drove asset prices up, and we've clearly see that asset prices

are reversing. The real question going forward is when they ramp up as they're they're doing now, as they ramp up the run the runoff of securities that have an increasing the impact on asset prices. And I certainly hope not that I think that we're liking to see that. This Mary's all. As always, Thanks Mark for your thoughts. Mark Vitner, senior economist at Wells Fargo with us this morning as we continue to watch futures move higher. Right now,

SMP futures up thirty four points. This is Bloomberg Bloomberg eleven three oh weather, mostly sunny, late day shower possible tonight. We'll get to the upper eighties and he showers end early tomorrow, hides in the upper eighties once again. We'll be sunny, less, humid, mid eighties for Thursday. Right now, seventy five degrees Live from the Bloomberg Interactive Berger Studios. This is Bloomberg day Break for Tuesday, August thirty. It's

two coming up this hour. Futures rise following the worst two day stock selloff since June. A top FED official says he was happy how the market reacted to j. Powell's Jackson Hoole speech and the Biden administration said to be preparing to sell a billion dollars in arms to Taiwan. New York Mayor Adams provides more resources for pregnant women, Blush grained launched Southern Offensive. As inspector said to a nuclear plant, I'd like the bar more ahead, I'm down

Stats and sports. Aaron Judges fifty ft film, Ron game in a Yankee loss of the Angel. Serena Williams advances at the US Open. That's all Trading ahead on Bloomberg day Break on Bloomberg eleven Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nine team and around the world on Bloomberg Radio dot com and via the

Bloomberg Business App. Good morning, I'm Nathan Hager and I'm Karen Moscow and ust Index Futures on the rise this morning. We are coming up to six o one on Wall Street. I mean check the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures at thirty four points, Staff futures have two hundred twenty two and nownesday futures

up one hundred thirty six ten. Your treasury up nine thirty seconds, you have three point six percent, that yield on the two years at three point four zero percent, and NIMEX screwed oil is down one point seven percent Nathan Karen. The rise in futures follows two straight days of losses on Wall Street. In fact, the SMP five hundred and NASTAC one hundred posted their worst to day tumble since mid June, following FIT Share J. Powell's hawk ish comments on Friday. Aaron Kennan is CEO at Clear

Harborsset Management. There has been a belief since perhaps mid June, that the FIT at some point, perhaps by the end of the year, would be in a position where they're 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. Darin Kennon with Clear Harborasset Management says equities could experience a

rough patch as the FED continues battling inflation. Well, Nathan, and while investors may have been rattled by the stock market reaction to Powell's speech, Minneapolis Fed President Neil cash Cary says it was good by him. I from me was not excited 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 Cheri Pal's Jackson Hole speech was received. You know, people now understand the seriousness of our commitment to getting inflation back down to two percent. Cash Curry 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 weakendings, and 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. Anapolis Fed President Neil cash Carey made the comments on the Odd Lots podcast with Bloomberg's Tracy Alloway and Joe Rosenthal. Listen to the entire interview wherever you get your podcasts. Interest rates are also in focus in Europe.

Parent E c V chief economist Philip Lane is urging a steady pace of eight hikes to fight record inflation. He thinks that will help minimize any negative consequences. Where we are now, where the poti fate is zero, is below Annie verse and off the terminal race we said in July, and it's fairly obvious, and the market believe at 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 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 outlined plan changes to the terms of its software licensing agreements in Europe,

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

exist software to these other networks. It says the new terms will also ensure the cloud partners quote have access to the products necessary to sell cost effective solutions that customers want. In New York, Charlie Pellett, Bloomberg Daybreak, All right, Charlie, thank you on the earning stront We get quarterly results 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 it 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 consess. This 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 budding administration is preparing to sell one point one billion dollars in missiles and radar support to Taiwan. It would be the largest transfer of US weapons to Taiwan, and almost two years of the sale does not offer Taiwan any new military capacity, still likely to lead to more protests from China to meantime, Karen. President Biden will deliver a primetime speech this week, escalating

his criticism of what he calls extreme MAGA Republicans. A preview now from Amy Morris and our Bloomberg newsroom in Washington. White House officials tell Bloomberg News President 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 Daybreak. All right, Amy, thanks, and 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 Shrump. Bloomberg political contributor Jeanie shehan Zeno 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 the oxygen in the room because Donald Trump takes it all up. Bloomberg Politic politics contributor Genie shehan Zeno spoke at Our Washington corresponded Joe Matthew on Bloomberg Sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio. Again, Future is on the rise this morning, straight ahead, your latest local headlines, plus a

check of sports. And this is Bloomberg. All right, Karen, thank you. It is uh six oh seven on Wall Street. Now. We's seventy five degrees in Central Park, getting heavy on the westbound l I E from the Van Wick through Woodhaven Boulevard. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York City will give pregnant women more support and expanded

access to resources. It's an effort to address health disparities. New York City Mayor Eric Adam says that he is signing seven bills into law making pregnancy safer and bridge the gap for maternal healthcare for black women and the numbers of clear. Black women are nine times more likely to die of pregnancy re lady causes than white women in New York City. That is an alarming, unacceptable number.

Mayor Adam says the bills will do several things, including established 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 being struck by a northbound our train in Jackson Heights, Queens. He's currently in stable condition at bell of View Hospital that set the

team was trying to subway serve. Ukraine's military says it is advancing in Russian hell Territory just north of the Crimea Peninsula. Ukrainian forces launched ground assaults in the Kirchhean 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 that Greenland's melting ice sheet will eventually raised global sea levels by about ten inches. According to the report in the journal Nature. The fear now oh 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 News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalists analysts more than a hundred twenty countries. Michael Barn this is Bloomberg, Nathan. Thank you, Michael. Almost six cent

on Wall Street time for the Bloomberg Sports Update. Here's John Stashower back to Nathan Yankees after a couple of lossons in Oakland, YA series in Anaheim and in the eighth in eight Milestone, the pitch swung on it hit deep center field, trouvel the run John number fifty, end of the war file in center field in Anaheim. It's four play angels after the whole run number fifty. John

at the f an at the call. He's only the tenth player in baseball history to have had two fifty home run seasons, and he gets there before even getting to September. The question now is if Judge can break Roger Marris's Yankee and American League record of sixty one homers angels one three on a show Heyo Tani two run homers. It's twenty night that came up Frankie Mantas, who has four and eleven record between the Yankees and Oakland.

The Dodgers, with a Tenny Winman Miami, are now fifty one games over five hundred as they started series tonight with the Mets at City Field across the parking lot for the US Open. Last night hot ticket to see Serena Williams not the final match of her career. She beat Duncan Covinett straight Sesslo. She would be back tomorrow night for a second round match for the net count

of Night and g is the tournament's second seed. The next said to be close to an agreement with R. J. Barrett only twenty two years old and he's getting a four year, one hundred and twenty million dollar extension, So if they are to make a trade with Utah for Donovan Mitchell, it will not include Barrett. NFL teams including Jackson Giants, have to cut their rosters down today. In a surprise, the forty Niners who are starting Trey Lands

are keeping Jimmy Garoppolo is the backup quarterback. John Stashar Bloomberg Sports. All right, John, thanks for red headline just causing the Bloomberg terminal. Elon Musk has sent a letter to Twitter adding reasons to terminate his forty four billion dollar buyout offer. Twitter shares right now are down almost three percent. Tesla shares are up more than two percent.

Futures are higher. This is Bloomberg. Good morning, Bloomberg, eleven three oh Weather, mostly sunny, chance for a late day shower today, upper eighties, any showers and early tomorrow Clearing. Hides in the upper eighties for Wednesday, sunny, less humid, mid eighties for Thursday. Right now seventy five in Central Park