Bloomberg Daybreak: September 1, 2022 - Hour 1 (Radio)

begin today. Plus former President Trump's lawyers and the d o J go to court the plassified documents in Mari Lango, I'm Michael barr More, I'm John stand Shown sports a Raino Williams put on a show and advanced the third round of the US Open. The Mets me the Dodgers.

The Yankees lost to the Angel That's All's trading ahead on Bloomberg Day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Syrius x M one nine team, and around the world on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning, I'm Amy Morris and I'm Karen Moscow any West dock in next. Futures

are lower this morning. We are coming up to five oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, S and P futures are down thirty one points down. Futures down a D eight, Nastack futures down one thirty nine. Ten year treasury down one thirty second. The yel three point one nine per cent, and they yield on the

two year three point four nine percent. Amy Karen. Stocks are beginning September with the way they ended August with losses. In fact, global equities are trading at a six week low this morning. Bonds are also selling off to your Treasury yields touched three and a half percent for the first time in fifteen years. Brian levitts global market strategist at Investco. The economy has slowed pretty considerably. Inflationary pressure still remain elevated, so the Federal Reserve is tightening into

a slowdown. We had a nice rally in July into the beginning of August, but the markets are recognizing that tighter policy is still ahead of US, and we still don't have certainty on where the terminal rate is going to be for the FED. That creates volatility and some pressure on markets. Investco Global strategist Brian Lovitt says he doesn't think the FED will keep rights elevated as long as most. Pierre well Amy, one prominent Wall Street bear,

says there is more pain ahead for equity investors. Morgan Stanley chief US equity strategist Mike Wilson says earnings risks are still not priced in. The earnings risk is now US right. We're cutting numbers and we think the numbers are gonna come down even further the next two quarters. So bottom line for US is pe multiple is wrong again, not because the FED is going to be hawkish, but because the equity market is being too optimistic about the

earnings outward. And Morgan Stanley's Mike Wilson says he sees major indexes quote down for at least the next quarter or two. And the sell off on Wall Street has spreading overseas. Starts and Asia fell to a six week low overnight. Let's get the recap from Bloomberg's Juliette Sally in Singapore, Good morning Juliette, Good morning Amy and Karen. China moved to lockdown cheng Do, a city of twenty one million residents, from Thursday night, to tackle COVID, and

that weighed on market sentiment. Tech firms also declined following Loretta misters hawk Is commentary. A stronger dollar saw the yen fall to a low, while the offshore Chinese currency weaken further despite the PBOC of fixing yuan reference rates stronger for a seventh session in Singapore. Juliette Sally Bloomberg Daybreak a Julie if thank you. All stocks are also

under pressure in Europe. This morning we go live to London and get the latest with the Bloomberg's You in parts good morning You and good morning Karen and Amy in the red will be the best way to describe the GMM screen on the Bloomberg today. With every major European stock market underwater. This morning's losses following month which saw the benchmark SOCIS hundred shed five point three percent on worries about soaring inflation, are looming energy crisis and

tightening central banks. All those factors and more also in play in the UK. Brutal August for markets here in London, with stocks down and Sterling losing almost five cents, the most since the Brexit vote six years ago. UK government bond deals meanwhile posted their biggest monthly jump on records Live in London. I'm your potspoon bag day break, all

right you and thank you. The weakness in the markets comes after JPL's hawk ish speech at Jackson Hole almost a week ago, and since then we have seen several officials, including Dallas FED President Lauria Logan, hammer hold the message on fighting inflation, hearing from central bankers and academics around the world. Um, the clear priority was bringing inflation down,

and that really lines up with my own priority. Um, being president of the Dallas Fed and as a policymaker, our number one priority has to be to restore price stability. Those were Dallas FED President Laura Logan's first public remarks since taking office last week. She previously worked the New York Fed for more than two decades. Well, I mean defense aggressive battle against inflation has sparked fears of recession

and higher unemployment. Well, this morning we get the second of this week reports and the labor market, initial jobless claims, and we get a preview from Bloomberg's Michael McKee. Jobless claims are seen as a canary in an economic coal mine. They should start to rise somewhat significantly if the unemployment rate is going up and if a recession is near. So far they haven't. After a brief and small summer rise, claims have stabilized, endless remain on guard. However, as the

Fed's interest rate moves begin to slow the economy. What may be more important now is following continuing claims those who continue to get jobless benefits after their initial week. So far, those have remained relatively flat, suggesting people who do lose their jobs are able to get new ones rather quickly. Michael McKee, Bloomberg Daybreak. All right, thank you, Michael. Another note on the labor market this morning, more job cuts. Three M is planning to eliminate positions. We get that

story from bloom Works Doug Prisoner. It's in reaction to a challenging macro economic environment. Three M says it's taking decisive actions to position the company for continued growth. The scope of the cuts could not be immediately determined three M employed about ninety people. At the end of the head of three M Safety and Industrial Division disclosed the plans. In a message to employees of the unit, he said,

the business can't avoid this tough necessity. In New York, I'm Prisoner Bloomberg Daybreak, right, Doug Banks, and in politics today, President Biden jumping into the midterm election campaign at the prime timeage rest of the nation. Tonight, we get a preview from Bloomberg Daybreak anchor Nathan Hancher. The White House has built this as a speech on the continued battle for the soul of our nation. Press Secretary Karine Jean Pierre.

As president, it is important for the President of the United States to have the strongest voice when we talk about fighting for our democracy, and the President has been ramping up that fight in recent weeks, referring to extreme mega Republicans and what he calls a semi fascist GOP agenda.

He'll deliver this speed tonight from Independence National Historical Park in Philadelphia, the home of the Liberty Bell and the signing of the Declaration of Independence and the Constitution in Washington. I'm Nathan Hagar, Bloomberg Daybreak, Allry, Nathan, thank you. Future is lower this morning, straight ahead, your latest local headlines, plus a check of sports, and this is Bloomberg. Thank you, Karen.

Five oh seven on Wall Street. Let's bring in Michael Barr with more on what else is going on in New York and around the world. Good morning, Michael, Good morning Amy. New gun laws take effect in New York this week, following the June Supreme Court decisions driking down a one year old state law restricting who can carry

a weapon. At a news conference, Governor Kathy Oakel says, among other things, residents must beat when he wanted to purchase a semi automatic weapons, strength in the background checks and the gun safety training requirements for him, concealed carry in secure sensitive locations, and require permit renewals every three years instead of five years. The gun location restrictions in New York City take effect today and will include Times Square.

Mayor Eric Adams, licensed gun carriers and others may not enter with the gun unless otherwise specifically authorized by law. Meanwhile, New York defeated an attempt by gun rights proponents to stop it from enforcing new restrictions on who and where people can carry concealed weapons. The U. S. District Judge and Syracuse rejected the request by gun Owners of America and others. A hearing today in a Florida federal court takes place over classified material found at the home of

former President Trump. Trump's lawyers will argue for a special master in what was seized from his Mara Lago home. The Justice Department has said the material seized do not belong to Trump, but to the government. Democrat Mary Peltola beat former Republican Alaska Governor Sarah Palin for the state's loan House seat in a special election. Peltola will fill the seat replaced the late Representative Don Young at least

until the end of the year. A team of UN inspectors is expected to reach Ukraine's nuclear power plant, hoping to secure the facility, which is in Russian held territory. International Autonic Energy Agency chief Raphael Grocy says they're seeking to establish a permanent presence at the plant to prevent a potential nuclear disaster. Waiting the pros and cons and having come so far, we are not stopping. We are moving now. The I a e A. S Raphael Grocy.

The cost of the new York City area Gateway rail tunnel project climbed to sixteen point one billion dollars, and the expected start of construction was pushed too. The plan is to seek more federal aid to cover the rising costs. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg Gaming. All right, Thank you, Michael. It's five

o nine on Wall Street. Time now for the Bloomberg Sports Update. Here's John's dash. How thanks Amy. What a performance by Serena Williams. She put off her retirement again. She played like it was nine nine and the years she first won the US Open. Serena Surns forty one later this month, mother of a five year old. He had struggled to win matches all summer, and yet now with the crowd at ash Stadium going wild with every point she wins, she's into the third round. She'd beat

the net continent. Who's the open second seed? Seven six two six six too. I think you can only have this experience, you know, once in a lifetime for sure. Um, I'm playing pretty good. I feel like like I saw the court up and practicing really well, but it hasn't been coming together and matches um. But you know, now it's kind of coming together, I guess. I mean, I had to bring it together today. So it worked out. Serena will be back at ASH tomorrow. She'll actually be

there tonight playing doubles with their sister Venus. While she was doing her thing, Jay from the Ground was doing his just across the boardwalk in City Fielding Ground one seventies allowed only a Mookie Bets home run Darling Marte and early two run shot. Mets beat the Dodgers two to one. Brandon Nemo saved the day with a seventh inning catch over the wall, taking the home run from the Dodgers Justin Turner. Edwin Diaz then got the actual save.

All season, they have played his theme song when he enters. Last night, it was a live performance by Tim he Trumpet in Adaheim. Yankees lost for the Angels three to two when Shoeotani had a three run home in the sixth inning off Garrett Cole. Seventy seven year old White Sox manager Tony Larusa taking tom offer of medical issue, John Stash were Bloomberg Sports team. All right, thank you, John,

And now let's check the markets. S and P features down twenty nine points, DAL features down one hundred seventy eight, Nasdaq features down one hundred thirty five points. A ten year treasury down to thirty seconds to yield at three point two. Much more still to come on Bloomberg Daybreak on this Thursday morning. Stay with us. This is Bloomberg, Bloomberg eleven three oh weather. We've got sunny and less humid conditions today. We're going up to eighty five degrees.

Up to eighty degrees tomorrow and then on Saturday, plenty of sunshine for your weekend, going up to eighty five degrees. Markets headlines and breaking new twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick takes a Bloomberg Business Flash and I'm Karen Moscow knocks and bonds extending their sell off as a hawkish drum beat from central banks and a lockdown in China further freight investor nerves. We checked the markets every fifteen

minutes throughout the trading day on Bloomberg. Right now U S and P futures are down thirty two points and down futures down a hundred nineties seven and NASDACK futures down one forty seven. That's down one point two percent. Adacks in Germany is down one and a half per set. Ten year treasury down to thirty seconds, held three point two percent yield on the two year three point four

eight percent. DIMX Screwed oil is down one point seven percent, down a dollar forty nine at eighty eight dollars six cents of arrol comex school is down half percent or eight dollars ninety cents is seventeen seventeen thirty announced. The euro one point zero zero three seven against the dollar in British found one point one five nine nine and an one thirty nine point two four. And look at a bitcoin it's lower down one point seven percent and

nineteen thousand, eight hundred fifty dollars. Today we are watching for the weekly report on initial jobless claims is at an eight thirty Wall Street time at ten it's hsen manufacturing and construction spending. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on. Around

the world. Michael, good morning, Good morning Karen, A Florida Federal court judge today a will decide whether a special master will carry out a third party review of those classified materials seized from former President Trump's mora lago with State. The Department of Justice has called the special master request unnecessary. President Biden will give a prime time address to the nation tonight. The White House says it will focus on what he calls the soul of the nation, including the

threats of political violence. Not retired yet. Serena Williams continues her magical run at the US Open, winning round two. In baseball, the Yankees lost with the Angels three to The Mets beat the Dodgers too one, the Red Sox and Orioles one. The Nationals beat the A's five one, the Giants lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts, are more than a

hundred twenty countries. I'm Michael Barr, and this is Bloomberg Gaming. All right, thank you, Michael. It is five nineteen on Wall Street, where live from the Bloomberg Interactive Broker studios. This is Bloomberg Daybreak. President Biden making the big prime time speech to the nation tonight. We want to get a preview of that and a few other things. Bloomberg Government reporter Jack Fitzpatrick joins us. Now, Jack, it's pleasure,

thanks for taking the time with us this morning. We know the pre resident will be in Philadelphia delivering that speech on what he is calling a battle for the soul of the nation. What will you be listening for, Well, you know we got a preview of this because he's spending a lot of time in Pennsylvania. You just had another speech that had a very similar focus, UH, in

Pennsylvania a couple of days ago, on Tuesday. I I think the key takeaway here is that clearly the president is trying to get aggressive on the campaign trail and seemingly maybe shift the focus away from inflation, economic concerns, the possibility of a recession, UH, and drive home the

message that that Republicans were, in his view, irresponsible. On January six, that the search of maral Lago and the the allegations that the former president Donald Trump kept top secret documents was also irresponsible, and and that the republic can party has gone awry. That's essentially the message Biden

is taking out on the campaign trail. I don't know how much that digs in to the supposed advantage that Republicans have in this kind of mid term environment, especially where the economy is a concern, but you know, it's really I think the key is it's interesting to see the President gets so focused in one particular state in Pennsylvania, which as a swing state, uh, Senate race, and and try to redirect the message in that sense. Yeah, this is his third trip to Pennsylvania in just the past week.

Is that significant? Well, it highlights the significance of Pennsylvania. They are trying to win the Senate race, trying to win the gubernatorial race coming up. Uh. He just showed up to wilkes Bury to also campaign for a swing seat in the House. Matt Cartwright, where he talked to the President, talked quite a bit about sort of tying in the port for police and police funding, local police

funding with the idea that to support law enforcement. You you could not have had any doubts about the former president's role on January six, kind of tying these these democracy related arguments together into one package and for one reason or another. Obviously Pennsylvania is a very competitive state in a few races, but for one reason or another, Pennsylvania is the major focus right now for the president.

Let's just briefly, if we could to Alaska, Democrats were able to flip Alaska's House seat, Mary Peltola defeating Sarah Palin in the special election fifty So yeah, a close race. But is there a message there for the GOP? I would I would mitigate any message that you think is clearly there for the Republicans. Uh, this is a really interesting race, but maybe a confusing one. This is ranked choice voice voting. Uh. Mary Paltola did win the first ballot,

the you know, the people's first choice. She got about forty of the vote, So it then came down to uh, the second choice. Sarah Palin obviously is somebody with a significant following, but you probably wouldn't be surprised to learn she's not exactly a lot of people's second choice, sort of a lover or hater kind of political figure. And only about half of the people who chose the other Republican nick bagas uh for their first choice then chose

Palin for their second choice. The rest either chose Mary Paltola the Democrat, or didn't choose anyone at all. So this tells us quite a bit about how ranked choice voting works, the possibilities that it can create for maybe a more moderate minority party at a Democrat running in Alaska in this case, um and she did run on abortion access to a significant degree. The Roe v. Wade decision to strike down Roe v. Wade was a significant

factor in this. I don't know that that means this is going to be a great result for Democrats and all the other races, but it really is an interesting case study in ranked choice voting. All right, thank you so much, Bloomberg Government reporter Jack Fitzpatrick. Always a pleasure.

We want to talk to you later again this morning, getting more information about tonight's speech from President Biden on what he is calling a battle for the soul of the nation, a theme that he has repeated pretty much repeatedly since Charlotte's Bill in seventeen. That's the first time we've heard him use that reference. So we'll be talking

with Jack a little bit later in the program. Let's check the markets now, SMP futures down thirty five, Dal futures down two hundred, ten NASDAC futures down one hundred sixty five points. Ten year treasury down one thirty second, the yield at three point two percent, still ahead. On Bloomberg Daybreak, we'll be checking the markets and bringing you the latest in business economics and finance. Day with us. This is a Bloomberg Bloomberg eleven three oh weather sunny,

less humid today, a break from that humidity. We're going up to eighty five today, down to eighty to grow down to eighty tomorrow and then on Saturday plenty of

sunshine going up to eighty five. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg e living three on to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg NAM sixty to the country, Sirius XM Chadle one nine ten, 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 Amy Morris and

I'm Karen Moscow. We're just about four hours away from the open of US trading. Let's catch you up to date on the news you need to know at this hour. While stocks are beginning September the way they ended August with losses, Morgan Stanley Chief US equity strategist Mike Wilson tells US there's likely more pain ahead. The index usually is the lasting to fall, so meaning June probably was the low for the average stock, but the index we

think still has to take out those June lows. We've used thirty four d for kind of the quote unquote growth recession or soft landing is you but I want to call it or a proper recession would be something closer to three thousand. The S and P five hundred is currently more than nine hundred points above that three thousand mark. Morgan Stanley's Mike Wilson says the market is not pricing in earnings risks, and global stocks are trading at a six week low as stocks in Europe and

Asia post sharp declines. There are also fresh COVID concerns in China. The government is locking down the city of shang Do. Bloomberg's Colin Murphy in Beijing says the city of twenty one million people will experience the biggest lockdown since Shanghai earlier this year. Popely there will have been some lessons learned from Shanghai, because that was the complete

chaotic handling of the crisis. And this is really an emerging hub in the western part of the country and had been pretty much immune until recently from COVID, So this is quite a disturbing development. Bloomberg's Callum Murphy says the Shindo lockdown comes after reporting one fifty seven new COVID cases yesterday. Meantime, this morning, Amy U S shipmakers

stocks are sliding. That's after in video warned new roles governing the export of artificial intelligence ships to China could cost millions in revenue, and right now and video is down five and a half percent in early trading. Markets will also price in fresh economic data today. Weekly jobless claims come in at eight thirty a m. Wall Street time, followed by I S M manufacturing data at ten am,

and it all comes before tomorrow morning's jobs report. To politics now, Amy President Biden is jumping into the mid term election campaign with a primetime address to the nation tonight. Bloomberg Political contributor Genie shehan Zeno says, the speech comes at a critical time. This is a big test for him.

This is going to be a peek into the closing argument that the Democrats are going to be making as they move into this really, really tough election year in which they're likely going to lose the House and may in fact lose the Senate. But they're giving it a really good try, and he's going to be leading that charge. Political contributor Genie shehan Zeno made the comments on Bloomberg Sound on Catch the program weeknates at five pm Eastern

on Bloomberg Radio. And this is Bloomberg. Thank you, Karen. It's five thirty three on Wall three. Let's bring in Michael Barr with more on what else is going on in New York and around the world. Thank you very much. Amy. New gun laws take effect in New York this week, following the June Supreme Court decision striking down a one year old state law restricting who can carry a weapon. Governor Kathy Oakel says they include gun free zones. The whole concept that a good guy with a gun will

stop the bad guys with a gun. It doesn't hold up, It doesn't hold up, and the data bears us up. New York City Mayor Eric Adams says the location restrictions take effect today. The city is posted signers around Times Square informing people that the area is a gun free zone. Meanwhile, a U. S. District judge and Syracuse defeated an attempt by gun rights proponents stop New York State from enforcing

new restrictions on concealed weapons. You and inspectors are hoping to gain access to Europe's largest nuclear power plant today, after making their way through the war zone in Ukraine. The plant, recently hit by shelling, remains under Russian control. International Atomic Energy Agency chief Raphael Grossi, we have a very important mission to accomplish. As you know, we are going to start immediately an assessment of the security and the safety situation at the plan. The I A e. A. S.

Raphael Grossy. Democrat Mary Peltola flipped Alaska's lone House seat in a special election, expanding the Democrats majority in the narrowly divided chamber. Peltola beat former Republican Governor Sarah Palin for the seat, and it sets up a rematch in November. In the end, Peltola got fifty one percent of the votes to Palin's. The Department of Justice and former President Trump's legal team meet in federal court in Florida today over last month's FBI surge and seizure of classified documents.

They will be battling over Trump's request for a special master to review all those documents. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty hundred journalist and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg Gaming. All right, thank you, Michael. On Wall Street. Time now for the Bloomberg Sports Update. Here's John's dash our. Alright, any the greatest of all time not done yet, retirement awaits.

But Serena Williams still going at the US Open, a stirring seven six two six six to second round victory over net Kantovitch eat the Open. Second scene. So if Serena can beat her, could she actually win the Open? I cannot think that far. I I don't. I'm here just like I said, it's I don't. I'm having fun and I'm enjoying it. And then um Honestly, I've had so many tough matches the last I don't know how

long that. I just feel like just being prepared for everyone that I play is just gonna be really, really difficult and get through those moments. Tomorrow will bring another huge crowd at ash Stadium. They'll go wildly each winning point of Serena will take on Odda, Tom Jonovitch, Rant, Andy Murray thirty five. He's into the men's third round,

lost the first set, drop only four games. After that easy win last night for the top seed in defending Champton Neil Medvedev, there was a playoff atmosphere at City Field Mets and Dodgers could meet. In the end, lcs them. That's one two to one, with Jacob Ground allowing only a Mookie Bets home run. Justin Turner nearly hit a game tie in homer off the ground seventh any, but Brandon Nimo went over the wall to make the catch.

Darlene Markday provided the offense with a two run shot early on, and Edwin Diaz got to save his entering theme song, this time performed live by Timmy Trumpet and Anna. I'm Garrett Cole cruising along to five innings. Then in the sixth and infield single and error at a three run homer by the Amazing Show Ao Tani is three of the year. The Angels tought the Yankees three to two. John Stashwar Bloomberg Sports seem all right, Thank you, John. It is seven on Wall Street time now for the

Try State Business Report. Here with that, Bloomberg's ed Corey Frontier Communications has agreed to expand high speed internet access in poor communities and an Internet surcharge and improved marketing and customer service. It's part of a sixty million dollar settlement announced Wednesday by Connecticut's attorney general. New Jersey state lawmakers this summer approved that tem Porker's Bill of Rights.

It calls for staffing firms to register with the state, offer enhanced benefits, and provide pay equal to what full time workers at their workplaces receive. The legislation now sits on the desk of Governor Phil Murphy. Reports of five thousand dollar tickets for Bruce Springsteen's upcoming tour have upset a New Jersey congressman. He's demanding that Live Nation Entertainment explained what he calls its exorbitant markups and secretive pricing practices.

Representative Bill Pascal alleges the company's ticket price practices rip off consumers. That's your Bloomberg Try State Business Report. I'm Ed Corey. All right, thank you, Ed. 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.

I'm Steve Potaskan ont X in Los Angeles. We're talking about reports of Disney consider ring an Amazon Prime style membership program. Um corney Tannahuan kerl d in Dallas. Sam's Club is raising its membership fee for the first time

in nine years. Him Caroline had Bloomberg DAV Digital Radio in Londovot putting on the bond market sell off as markets price in bigger Great Heights from E C B. Bid coryon w w J in Detroit, I'm reporting this city plans to reopen it's adult use marijuana application process this week. And those are some of the stories our Bloomberg journalists 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 sedatorial was written by the Bloomberg Editorial Board. Mikhail Gorbachoff, who died this week at age ninety one, defied convention throughout some of the most tumultuous years of the Cold War. When he assumed leadership of the Soviet Union in he inherited the country that was economically moribund, stubbornly corrupt, and suffering through the final spasms of ideological failure. A lesser leader

might have tried to ignore such challenges. Gorbachev took many of them head on. Perhaps his greatest achievement was overseeing the largely bloodless dissolution of his own empire. Millions of people across Central and Eastern Europe gained freedom as a result. Gorbachev's legacy is complex, to be sure. The final leader of the Soviet Union failed at most of his ambitions, but the world was better for them all the same.

The senatorial was written by the Bloomberg Editorial Board. For more Bloomberg Opinion, please go to Bloomberg dot com, slash Opinion or opie I n go on the Bloomberg terminal.

This has been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every weekday at this time, and terminal customers can read more at opie I n oh SMP futures down thirty points, DAL futures down one hundred seventy five points, NASTAD futures down one hundred forty five points, the ten year treasury one thirty second higher, the yield at three point one eight per cent. Still ahead on Bloomberg Daybreak and check on all the news you need to start

your day. This is Bloomberg. Bloomberg eleven three oh weather, sunny, less, humid today, going up to eighty five degrees. We'll get up to eighty degrees to start your weekend tomorrow, and then plenty of sunshine on Saturday going up to eighty five. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at

Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm Karen Moscow stocks in Voluns extending their sell off as a hawk issue, drum dead from central banks in a lockdown in China. Further phrase investor nerves. Europe Stock six hundred index is sliding one and a half percent, led by miners in real estate, and US ship makers are falling in pre market trading, dragging down NASTAC futures after a sales warning from Nvidia, who checked the markets

every fifteen minutes throughout the trading day. On Bloomberg right now, NASDAG futures, they're down one hundred thirty one point sets down about one point one percent, SMP futures down twenty five and down futures down a hundred forty two Tenure Treasury up one thirty second Yell three point one eight percent. They yield on the two year three point four seven percent.

Nine Max screwed oils down one point six percent at a dollar forty five and eighty eight dollars ten cents of barrel call mex School down half percent or eight dollars forty cents at seventeen seventeen seventy an ounce. The euro is at one point zero zero three zero against the dollar, British pound one point one five nine seven and the end one thirty nine point one five, and Bitcoin is down one point four percent at nineteen thousand

and nine hundred dollars as a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael darn, thank you very much. President Biden will deliver a national address tonight that will focus on

what he calls the soul of the nation. The White House says he might discuss Republicans threatening violence if the Justice Department and Night's former President Trump the federal judge who signaled a preliminary intent to appoint a special master to oversee the review of the documents the FBI sees from Trump's Florida home as scheduled a hearing today. Serena Williams has advanced to the third round in the US Open. And baseball, the Yankees lost to the Angels three two.

The Mets beat the Dodgers to one, the Red Sox and Orioles one. The Nationals beat the A's five one. The Giants lost. Global Needs twenty four hours a day on air and on Bloomberg Weikdake, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. On Michael bar this is Bloomberg gaming, all right. Thank you. Michael. It is nine on Wall Street and we're live from the Bloomberg Interactive Broker Studios. This is

Bloomberg Daybreak. We are joined live now by Michael Houston, Chief market an Analyst with CMC Markets. Michael, it is a pleasure. Thank you for taking the time with us this morning, as we just heard from here and the markets have gotten hammered since fed Share Poel's speech at Jackson Hall, and we just asking about your view first on this first trading day of September. Yeah, it's certainly not go off to a positive start. Hasard ain't here.

I think it's like someone switched a light switch on Friday, because what we've seen with respect to equity markets has been quite start But I think most of the action has actually been in the bomb market, particularly here in Europe, or we've seen massive jumps in yields, not only on the long end but also on the short end. I think there's been a significant change in sentiment when it comes to the reaction function of not only the Bank

of England but also the European Central Bank. I think people are now starting the price in the possibility seventy five basis points by the ECB next week. But also here in the UK, the markets are starting the price four point to five bank base rate from the Bank

of England. Now we're at one point seven five at the moment, so I think market pricing has got slightly out ahead of its skis because even though inflation is high here, I'm struggling to think of any sort of scenario that would cause the Bank of England the hype rates to that extent. I see. So as we do start this new month, though you talked about barns, where do we go next for the equity markets, Well, I think it's quite likely that we're going to retest the loads.

Um Certainly, I think that is going that's my base case for the US. Here in Europe, we're already back at July levels for the docks has seen some significant declines over the course of the past few days and has the potential to go a little bit lower. But certainly, I think we're going to retest the tune loads for the docks potentially the next week or so. Um As for the as the US markets, I think again we're probably going to see a retest of the loads at

some point. Michael, is this a buying opportunity. Do we see a bartom coming anytime soon? I'm not inclined to buy at this point. No, And I think one of the reasons for that is until we get a clearer idea of what central banks are likely to do over the course of the next few months, I think it's going to be very, very choppy. I think it also depends on what energy prices are going to be doing. I think there's an awful lot of uncertainty around them.

One of the good things I think over the course of the past few days, as we have seen a big drop not only in crude oil prices, but we also seen sharp falls in natural gas prices on both sides of the antic. But the problem with that is is there's still at very very high levels, even accounting for the twenty nine or drop that we've seen in the past week or so. You mentioned getting a clearer indication from the central Bank. What is it you're looking for.

What are some of the flags out there? I think for me, the flags are first and foremost, what's going to happen in September. What's the Fed going to do

in September? I think tomorrow's payrolls report is a little bit of a distraction, because I think ultimately we will get a seventy five basis point very high from the Fed in September Milly on the basis of the tone of pal speech last Friday, I think it's what happens after that, what is what is what is the inflation outlook likely to look like as we head into twenty three.

They've indicated that they're not going to be cutting rates anytime soon, and I think for me, it's really about how fast inflation starts to fall back and how that influences central banks as they head into twenty three. I think September and October a very difficult months for equity markets historically, and I think that's likely to continue to

be the case. So I think for me, it's really about what the outlook looked like looks like at the end of September, because I think before that it's going to be very, very difficult to really make a clear decision given the current sets of uncertainty that we've got with respect to not only monetary policy but also fiscal policy going forward. So do you anticipate inflation falling back? Maybe we buckle up for September October and then things will start to ease off. I think we will start

to ease off. The problem we've got here in the UK is we've got a broken energy market and it's very, very difficult to really extrapolate what energy prices are going to look like three months out from now. We're already looking at an eight percent rise in energy prices here in the UK for October. Now, that's going to be very difficult. In fact, it's going to be impossible for consumers here in the UK to absorb. Next week we

get a new Prime minister. The big question landing in that Prime Minister's inbox will be how do you mitigate some of the worst effects of that energy price spike and what happens to energy prices going forward. We still don't know whether or not pouting will allow gays from to reopen North Streme one, So what will the affect that I have energy process set against windsor in Europe? Just an incredible amount of uncertainty. We're gonna watch it

with you. Michael Houston, Chief market analyst with CMC Markets. Always a pleasure to talk to you, sir. Thank you so much for joining us. Karen Amy. It is five fifty four on Wall Street Time. Now for the Bloomberg Law Report. Let's get to the legal stories we are watching this morning. From Bloomberg Jeff Bellinger. The Federal Circuit ruled that smartphones made by Apple and other tech companies do not infringe on patents held by I, n VT

and U S. Sales of the devices can continue. The Second Amendment Foundation filed a federal lawsuit over California's ghost gun law that restricts individuals from making their own firearms. A federal appeals court rule that Burger King affiliates must face antitrust litigation over a pack that barred the fast food company and its franchisees from recruiting one another's employees. 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 that we're watching this morning. The expansion of the so called metaverse, accessible through immersive headsets is generating concerns about the information that's collected on people who wear the devices and how to protect it. For more, Bloomberg's Lydia Wheelers spoke with Bloomberg's law reporter Andrea Vittorio.

There are a lot of potential applications UM. Gaming is definitely one of them. UM. That is learning. There are schools that are experimenting with virtual reality for students. There's also corporate training that can happen in virtual reality. You can help firefighters or doctors learned their craft UM just by practicing an additional environment. UM. And they're just a lot of different use cases that were kind of are seeing explored, but UM could broad now like theme parks,

travel shopping. There's a lot going on there in the metaverse. So what kinds of data are our companies collecting from people who use these sorts of extended reality devices? And is any of its sensitive information? The data collected can depend on the device or how you're using it UM, But there are a lot of potential collection points, like when you wear a headset, can gather information about like

how your head is moving, what you're looking at. UM. You can sometimes hold devices in your hands that will track your hands are moving or what sides they are even so UM these are all considered UM pretty personal pieces of information because they really varied by person um and can even the sort of amount to identifying the person if you have enough information about done than how

they move and what they look like. So uh, prior to the advocates or concerned just about the um physical characteristics or traits that are being gathered about people as they use these devices. And that's Bloomberg the Law reporter Andrea Vittorio speaking at the Bloomberg so Lydio Wheeler. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law podcast or downloading

this 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 Futures lower this morning and so ahead on Bloomberg Daybreak, I checked on the business headlines and all the news you need to start your day. And this is Bloomberg