Bloomberg Daybreak: September 13, 2022 - Hour 1 (Radio)

plans to introduce national abortion restrictions on Michael Barr. More ahead, I'm Don Stage toward swards, the Mets Walk of the Cuve. The Yankees visit the Red Sox Tonight Monday Night Football Seattle Top, Denver. That's all s. Tradyhead on Bloomberg Daybreak on Bloomberg. He Live in Free on New York Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via

the Bloomberg Business App. Good Morning, I'm Nathan Hagar and I'm Karen Moscow. US DOT Index futures on the rise this morning. We're coming up to five o one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures up sixteen points down, futures of a hundred seventeen and nasday futures up forty six. The tenure treasury up ten thirty seconds. You have three point three one per cent, Nathan Karen

for markets today it is all about inflation. We get the latest read on US consumer prices at eight thirty am. Wall Street Time forecast call for inflation to ease, but Crawl Institute chief economist Megan Green says there is a risk prices go in the other direction. Well, I think we'll see headline inflation coming down thanks to lower gas crisis, but in terms of core inflation, we might see a take up very moderately. I actually think the risks are

on the downside. There's a possibility it could fall, but generally I think it will take up very moderately, and that's good news that it's increasing at a slower rate. But I don't think that the fig can breathe a sigh of relief just yet. Megan Green at kral says an energy crunch could push prices higher in the coming months. Economist surveyed by Bloomberg expect inflation for August to come

in an annual rate of eight point one. I headed that a report Nathan the mood and equity markets is risk on Stalks in the Asia Pacific climbed over night and Bloomberg. Juliette Sally joins us with the recap from Sydney, Australia. Good morning, Juliette, Good morning, Karen. Text stalks led the games, with Apple suppliers rallying amid strong preorder data for the latest iPhones South Korea has cost me rose more than two and a half percent as investors played catch up

after Monday's holiday. If You'll show you one weekend. Despite yet another strong fixed from the PBOC four in a row, the bias was below two hundred PIPSLO for the first time in a week. M Life strategist highlighting this suggests that PBOC could be easing off slightly in its battering of you one bearish bits in Sydney. Juliette Sally Bloomberg Daybreak, Right, Juliet, thanks back here in the US. Couple of corporate names we're watching this morning. Shares of Peloton are down more

than two percent in early trading. That's afterwards chairman and co founder John Folly is stepping down from the company. His resignation takes effect on Monday. Well, on the flip side, Nathan, we're seeing shares of Oracle Game. They're up almost two percent after earnings are in line with estimates. Sales for Oracle jumped eight percent in the recent quarter thanks to strength and cloud computing. Elsewhere on Wall Street, job cuts

are in focus this morning. Goldman Sachs is going ahead with its biggest round of cutback since the start of the pandemic. Sources say the bank plans to eliminate several hundred roles starting this month. Bloomberg's Valerie Titel says the cuts will be based on performance. They usually have an annual calling cycle, but I think what's notable about this one is that they are resuming normal activity after the pandemic.

This comes after some pretty steep declines and investment banking activities, notably I P O S and junk debt issuance, creating, you know, quite some conditions for some significant layoffs to begin post pandemic. Bloomberg's Valerie tits Hele says Goldman will use the cuts to weed out low performers. The move could signal a chill setting in across the finance industry as revenue slumps from record highs. Let's turn to politics now, Nathan.

We're an investigation into the election is heating up. The Justice Department is ramping up its probe into the plot to overturn the presidential election, issuing dozens of subpoenas targeting

campaign operatives and allies of former President Trump. Bloomberg's Amy Morris has details from our newsroom in Washington about forty new subpoenas were issued, the focus appearing to be the alleged scheme to have fake or alternate electors come to Washington to delay the certification of Joe Biden as president. The New York Times reports the Justice Department also seized the phones from Trump's lawyer Boris Epstein and campaign strategist

Mike Roman. At the time says some of the new subpoenas focus on activities of the Save America political action Committee, which is the main political fundraising arm for Trump since he left office in Washington. Maybe more as Bloomberg Day Break. Okay, Amy, thank you, Let's turn our attention to Ukraine now. The country is asking for even more weapons to build on

its recent successes in retaking territory from Russia. President vladimir's Lensky says forces have recaptured more than twenty three hundred square miles this month. Former US Defense Secretary Leon Panetta says this could market turning point in the war. I would say it's both pivotal and dangerous. It's pivotal because to have Ukraine conducting a strong offensive that's working is incredibly important to putting real pressure on both Putin and

the Russians. It's dangerous because Putin, if he's boxed in, obviously will have to strike that. Former Defense Secretary Leon Panetta spoke with David Weston on Bloomberg's Balance of Power. Catch the program weekdays at noon Eastern on Bloomberg Radio and Television, plus the Balance of Power podcast on Apple,

Spotify and anywhere else you get your podcasts. And finally, Nathan to the Okay, where ceremony is remembering Queen Elizabeth continue this week Morners in Scotland are paying respect to the Queen this morning and here with more is Bloombergley and Garran's. Thousands of people have been queuing through the night to see the queen's coffin at St Charles Cathedral in Edinburgh. The Queen's coffin will rest in the cathedral until about five pm local time today before beginning the

journey back to London. It will then be taken to Buckingham Palace and then to Westminster Hall, where the Queen will lie in state for four days. A National Minutes silence will be held at eight pm on Sunday, the night before the Queen's funeral in Westminster Abbey. And Bloombergley and Garan's reporting from London. We'll bring you live coverage to the Queen's funeral coming up Monday, right here on bloomberg Daybreak. All right, Karen, thank you. Let's look ahead

to the market open now. Futures are moving higher. We have SMP futures up eighteen points now, futures up a hundred thirty five now. Stack futures are higher by fifty three points. The tenure treasury is up nine thirty seconds yield three point nimex crude on the rise by one and a quarter percent of a dollar nine eighty eight dollars eighty seven cents of barrel the euro one point one zero five five against the dollar. Local headlines and

a check of sports. Just ahead. This is Bloomberg and it's now five oh seven on Wall Street, seventy one rainy degrees in Central Park early dealing with accidents all these wet roads southbound west side highways. Got a crash on 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 Attorney in A warning is just expired for people in the Breezy

Point area. That's New York's Queen's County in King's County. It was issued until five am. So far, no early word yet of any damage. Keep in mind though flood warnings are in effect for a lot of the New York area. The mother of three children who were found dead at Coney Island Beach was questioned by the YPD for about six hours before she was taken to a

hospital for a psychological evaluation. Yesterday, police found the bodies of seventy year old Zachary Murdy, four year old Liliana, and three month old Oliver Bunderev in yp D. Chief of Department Kenneth Corey says the thirty year old mother was found two miles down the board of walk from her home in what appeared to be a catatonic state. She was wet, she was barefoot, um, and she was

not um communicative to the officers. The community was left in shock over the depths of the children into somebody, take them to somebody, police say. Family members claimed the mother confessed that she drowned her children, but she has not said anything directly to investigators. Republican Senator Lindsey Graham plans to introduce legislation to restrict abortion nationally. The South Carolina senator is scheduled an announcement at the capital for

later today. Graham's action raises the profile of abortion rights as an issue for the midterm elections. Negotiations between the unions representing railroad workers and management have stalled. This means some amtrack riders could experience delays and could cause the rebounding economy to lose momentum. The deadline for a deal is just after midnight Frinday. And last night's Emmys on NBC, HBO took home the Top award for the sixth time in eight years, thanks to succession for Top Drama and

White Lotus for Best Limited Series. Apple's Ted Lasso repeated as Best Comedy. Kawang Dong Yuk made history as the fourth South Korean director to win for Best Drama for Squid Game since Kid Game got footing nomination at the Emmy's. People keep telling me like I made a history, But I don't think I made a history by myself, because it was you who opened up the doors for Skid Game in Balios. Here tonight at the Emmys, Squid Games

Lee Jung j One Outstanding Actor in a Drama. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists and analyst for more than twenty countries. Michael Barron, This is Bloomberg, Nathan. Thanks Michael. Coming up to five ten on Wall Street time for the Bloomberg Sports Update. Good morning, John, Station morning. Nathan mets back home from a road trip that saw them win two or three in Pittsburgh two or three.

In Miami, now facing another subpar team, the Cubs, but Chicago got to Chris Bassett pair of early home runs. Bassett gone on the fourth inning having allowed five runs. The Cubs won five to two, but Atlanta lost in San Francisco three to two. Brads third loss in a row. Mets remain game and a half ahead Yankees and Red Sox.

Tonight in Boston, Garrett Cole on the mount, the two teams behind the Yanks met Toronto on a bow Buchette Ain't Sennying homer top Tampa Bay three to two, so the Blue Jays now in second place, five and a half games behind the Yanks and the race trail by six. The first NFL Sunday saw three teams Cleveland, Pittsburgh, New Orleans win games with last second field goals of over fifty yards. Last night in Seattle, Denver tried to win

with a sixty four yard field goal it missed. In the Seahawks one seventeen sixteen, Broncos had time to try and get a first down move closer, but elected to try the long kicks of Russell Wilson loses in his return to Seattle in his first game with Denver. The Jets Sunday bring their thirteen game month of September, losing with Drake that Cleveland Jets offense struggled in the loss of Baltimore, but took rob Sala feels it will improve those little errors on the offense. Was was having the

first half stop happening. It's going to be explosive and none it carries out in the second half. You're you're just gonna feel it. Uh and and in a way it does just click where you're just stacking up there after day after day and um and it's really really cool when it does happen because it just absolutely pops off the tape. Had Sunday facing the Brown's team that just wanted season open for the first time. It's two thousand four. Giants got their first in two thousand sixteen.

This Sunday, they host Carolina. John stash were Bloomberg Sports, Thank you, John SMP futures right now up seventeen points. South futures of A hundred twenty three futures are higher by forty seven points. Ahead of August cp I, we preview the latest read on inflation next with Bloomberg's Michael McKee, This is Bloomberg Bloomberg eleven three oh weather. Showers and

storms should end by right around lunchtime. We'll get up to the low eighties today, sunshine, low eighties tomorrow, sunny Thursday, but cooler with a high your seventy five degrees right now, some showers seventy one degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com. The Bloomberg Business at end at Bloomberg Quick Tape is a Bloomberg Business Flash and I'm Karen Moscow. And US dot

index futures are advancing ahead of key inflation data. Treasury yield to dipping in the dollar extending at a climb. Contracts on the SNP five and nausdack on rising this after the SNP completed its best four days search since June, following robust reordered data for Apple's iPhone fourteen pro Max. We check the markets every fifteen minutes throughout the trading day on Bloomberg s and P Future is up sixteen points right now, down futures up a hundred twenty NASDAG

features up forty five. The decks in Germany's up a tenth of upper set ten, Your treasury up nine thirty seconds. You have three point three two percent. The yield on the two year three point five two percent. Ni Max Screwed oil is up one percent or eighty three cents at eighty eight dollars sixty one cents a barrel. Comics called down a quarter percent or four dollars forty cents is seventeen thirty six twenty announced the euro one point

five zero against the dollar. British found one point one seven oh seven the end at one forty two points to eight, and Bitcoin and lower down a third of u percent at twenty two thousand, three hundred and thirty dollars, and a consumer price index is at an e thirty Wall Street time as a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Uncle, good morning, Good morning Karen. The coffin of Queen Elizabeth

the Second will head from Edinburgh, Scotland to London. The Queen will lion state in Westminster Hall for four days. In London. More than thirty people associated with former as a been Trump and efforts to influence the election results.

Have receive federal grand jury subpoenas. Meanwhile, Trump and the Department of Justice agreed that Judge Raymond Derry would be a suitable choice for an outside special master to review the documents taken from Trump's tomorrow law go Home as part of an investigation into his handling of government records. Monday Night Football, the Seahawks upset the Broncos seventeen sixteen in baseball, the mental loss to the Cubs five to

the Giants. One Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan, Michael. Thanks, It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and for markets this morning, it is all about inflation. We are just about three hours or so away from the release of

the August Consumer Price Index. Read that is going to be very important. We assume for the Federal Reserve, it's fight against inflation. Joining us now ahead of the CPI print. Michael McKee, Bloomberg's economics and policy correspondent from Bloomberg Radio and Television, Mike, Good to have you with us in studio this morning. You look at the ECO screen, ECO go on the Bloomberg terminal. Looks like we're expecting a drop in overall inflation, but a slight uptick in the

core reading. What the FED really cares about? Why is that? Well, the car gives you a better picture of where inflation is going, because, of course the headline is influenced by commodity prices, particularly energy, which is the reason we're going to see drop today. Probably is because energy prices, particularly gasoline prices in the US fell significantly during the month of August seven point seven. So we should see a

drop in the headline. But there are a number of categories in the core where there is still strength, including housing. The rental price cost that goes into CPI is likely to keep that boosted. Plus there is a base effect high inflation last year so at this time, so the Fed is probably going to look at this as progress but not nearly sufficient. Is there anything that I mean that there's isn't anything that the FED can do about base effects that's going to roll into the reading. We

get today. What can the FED do at this point to get more of a handle on that core inflation. Well, it's interesting because a lot of people on Wall Street are saying, it's not what the Fed does in reaction

to this CPI report, but what the markets do. If the markets think the Fed is going to back off and react positively to dropping the headline cp I, the feeling is that might be a mistake because the FED seems committed to seventy basis points at the next meeting, and their view is going to be not you know, necessary, but not sufficient in terms of the drop in prices. They're gonna want to see continued progress and significant progress,

particularly in the core. As to how they can bring that about, basically by keeping rates high enough that demands slows some and then waiting. There isn't much you can do about the speed with which housing goes into the CPI. It could be a year before we see the current declines, you know, prices and rents start to impact the CPI report. So the Fed's gotta keep the pedal to the metal and uh, keep their eyes on inflation and not celebrate

too much. You talk to Fed speakers, central bankers, regularly, Mike. Have they given you any reason to think that if we did see a drop in the overall inflation print that it would give them reason to let up on the gas. Yeah. They they're not saying that they're basically

committed to seventy five. The feeling at the Fed seems to have shifted over the last couple of weeks to UH, from reacting to the data on a month by month basis to deciding we're going to get to a slightly restrictive rate just some above neutral, which different members defined different ways. Some say that's four, some say it's just under. But the feeling is they're gonna get there, and then

they're gonna turn data dependent. They're gonna want to have the economy UH contracting somewhat, maybe not shrinking, but growing at a much lower pace, and that should bring down some of the other price pressures out there. Then they leave it there for a while until they're convinced that

inflation is definitely going down towards their two percent target. There, last minute here, Mike, Given all the factors that go into course cp I, what are you seeing, what are you looking for as the main drivers of core inflation and the reading we could get later this morning. Housing

is going to be the main driver. It's of the CPI, so it has a huge weight, which is one of the differences between that and the feds pc index that they tend to watch has a lower weight out housing, but also new cars prices are still expected to be rising, and then we'll have to see if there's some categories where supply chains are still causing problems. That's hoping that's starting to normalize but hasn't so far, Yeah, or it cons back to that h T word. We we don't

say anymore, right. Mike McKie are economics and policy correspondent for Bloomberg Radio and Television, helping us get ready for the all important August Consumer Price Index. The overall reading expected to drop four tenths percent, according to economist surveyed by Bloomberg, to an annual reading of eight point one percent, while the core that excludes food and energy is expected to rise just a bit, by two tenths of a

percent to six point one year over year. Looking ahead to the market, open futures are showing a little bit of resilience. You've got us in p futures right now. Have fifteen points down, futures up A hundred fourteen and NASTAC futures are higher by forty two points tenure treasury

up nine thirty seconds. The yield three point three. This is Bloomberg Bloomberg eleven three oh Whether any showers and storms should end by mid day today We'll get into the low eighties, sunshine low eighties tomorrow, sunny, mid seventies by Thursday. Right now seventy two degrees in Central Park.

Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixteen to the Country Sirius XM SHDO one nineteen and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. We're 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 this shour you futures are higher ahead of the latest data on inflation. We get a reading on US consumer prices for August at eight thirty am. Wall Street Time forecast call for inflation to ease to an annual rate of eight point one per cent, and here with Moore is Bloomberg Economics correspondent Michael McKee. Falling energy prices likely held down headline inflation in August, but higher costs for housing and education or

forecast to have pushed core inflation higher. Beneficials have all but said they're locked in on a three quarters percentage point increase for interest rates next week. Higher core rate won't affect their thinking, but it will serve as a reminder the fight against inflation is far from over. Michael McKee, Bloomberg Gay break all right, Mike, thanks. Global stocks are slightly higher ahead of that CPI report, stocks in Europe and Asia posting moderate gains. S ANDP futures are up

sixteen points well elsewhere on Wall Street. Nathan job cuts are in focus this morning. Goldman Sachs is going ahead with its biggest round of cutback since the start of the pandemic. Sources tell us the bank plans to will eliminate several hundred roles starting this moth. Bloombery Sly big Well says the move could signal h hills setting in across the industry. The other investment banks they faced similar challenges.

They're battling inflation. They have also seen a slump in dealmaking in investment banking, and we understand that a lot of the cuts with Goldman Sex were in that division. And so we can expect that this sets the tone a little bit for broader Wall Street and that week we might start see other banks following suit and Bloombery say big Well says the cursed Goldman will be used to weed out low performers. Let's turn our attention to

Ukraine now, Karen. The country is asking for more weapons to build on its recent successory taking territory from Russia. President Vladimir Zleinsky says forces recaptured more than twenty three hundred square miles this month. AGNEYA. Gregis, as a senior fellow at the Atlantic Council, I do believe the spells a turning point, and at this point we could suggest that either Russia is facing defeat or it's facing a stalemate. Agneagregas with the Atlantic, so says the areas Ukraine is

securing could give them a strategic advantage over Russia. And finally, in politics this morning, Nathan, the Justice Department is ramping up its probe into the plot to overturn the presidential election. The d o J is issuing about forty new subpoenas to campaign operatives and allies of former President Donald Trump. The New York Times is also reporting that phone records were seized from a Trump lawyer and a campaign strategist.

And again, futures are moving higher this morning, and straight ahead, we had your latest local headlines, plus the check of sports, and this is Bloomberg. Thanks in Wall Street, seventy degrees in Central Park flooding as East found Belt Parkway closed at Fourth Avenue. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Michael, thank you very much, Nathan.

The thirty year old mother who is accused of drowning her three young children at Coney Island Beach remains hospitalized under psychiatric evaluation this morning. Yesterday, the budies of seven year old Zachary Murdy, four year old La Lana, and three month old Oliver Banderev were found on the shore of the beach. The NYPD s as the woman, who has not yet been identified, was found soaking wet, nearly catatonic, and barefoot, about two miles down the board of walk

from the section of Kilney Island where she lived. The community is reacting to the news. Zachary's school football coach says it's hard to believe Sally kid really good kid, always smiling on a football field. Police say. Family members claim she confessed to the killings, but has not said anything to police. Republican Senator Lindsey Graham of South Carolina will once again try to introduce legislation to restrict abortion nationally.

Graham as scheduled an announcement for later today at the Capitol. The politically explosive debate is emerging as one of the central issues in the midterm election campaign. The White House is working to revert a rail workers strike. President Biden has reached out to both the unions and railroad companies. If a deal isn't made by Friday, it could lead

to major rail disruptions. Amtrack already announced it will be suspending several routes the Association of American Railroads says a nationwide rail work stoppage could result in a two billion dollar daily economic hit. Jason Today Because this comedy ted Lasso air and on Apple claimed the Top Comedy prize at last night's Emmy Awards. The show is about good and evil, and so the show is about like the

truth and lies. This show is about all that stuff, but it's mostly about our response to those things, and your response to our show has been overwhelming. HBO Succession took home the Top Drama honor. Another HBO show, White Lotus, was named the Best Limited Series. Lee Jung j of Squid Game won the Best Drama Actor. The Emmys were aired on NBC Global Needs twenty four hours a day on air, and on Bloomberg Quick Take, powered by more than twenty seven hundre journalist and analysts in more than

a twenty countries. I'm Michael bar This is Bloomberg Naked. Thanks Michael wall Street. Time for the Bloomberg Sports Update with John stanhow all Right, Nathan NFL Week one end with Denver at Seattle. So Russell Wilson's first game with the Broncos was against his old team. He wanted to get traded. That's why he got booed. Wilson through a three yards but twice to the second half. The Broncos fumbled at the Seattle one yard line, then they missed

a long field goal Seattle one, seventeen sixteen. The new Seahawks QB is Gino Smith, the former Jet and Giant. He played well, especially in the first half. Jets did not play well and the loss of the Ravens their thirteenth loss in a row in September, so plenty of critics, but Jets coach Rob Sala thinks he will have the last lack. I know what's gonna happen, and I'm and I'm taking We're all taking receipts on all the people who continually mock and say that we aren't gonna do anything.

I'm taking receipts. I'm gonna be more than half to sharing with all ye old one. It's all of a a sudden Yet Sunday visit Cleveland. The Browns just wanted Carolina the one on old Giants host the fan through Sunday. Week three, they played Dallas. The big NFL injury at a Week one Dak Prescott already had surgery on an injured hand. Expected to keep the Cowboys keeb out six to eight weeks. City Field covered with the Mets five

to two. Not a good atting for Chris Bassett gave up all five gone in the fourth any with Atlanta has suddenly lost three in a row. Mets state game and a half ahead. Yankees and Red Sox tonight in Boston. Just a two game series. They'll play four times next weekend in New York. Mike Trout homeward for the Angels seventh game in a row. He can try the Major League record Tonight. MLB told the Dodgers that if they won Sunday, they plans to play out for US, so

they wanted. They celebrated, and then MLB informed them they had made a mistake. So they celebrated again after a win last night, and they may celebrate again tonight they can clinch the division. John stash Award Bloomberg Sports Nathan. Thanks John. It's five thirty seven on Wall Street time for the Tri State Business Report. Here's Bloomberg's cory. Hundreds of New York Times employees are defining the company's return

to office push. More than twelve hundred journalists and tech workers represented by the News Guild of New York pledged not to return to the office Monday, and an effort to get The Times to negotiate return to office plans. New Jersey has won its third credit rating upgrade this year, putting the state in better standing than when Governor Phil Murphy came into office in two thousand and eighteen. Fitch Ratings raised the rating one notch to A, the sixth

highest investment grade, from A minus. Connecticut's Governor Ned Lamont has requested disaster declarations for Litchfield and New Haven Counties because of the difficulty agricultural producers face with the ongoing drought. Lamont side of the high route level for the county's officials approved primary disaster declarations for New London and Windham Counties in August. That's your Bloomberg Trying State Business Report. I'm Ed Corey. Thanks that It's five thirty eight 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 Potos content ten Wins in New York. We're talking about New York Times staffers challenging the papers returned to office policy. M Corney Donahoe on wh S and Louisville. Starbucks is offering new perks for

non union stores. I'm Caroline Head Gone Bloomberg. D A. B. Disowjo in Lontomove Poto on the latest UK jobs numbers showing the unemployment rate dropping to the lowest this kind. Corey on W T A M. In Cleveland. I'm reporting Energy Focus has a new CEO. And those are some of the stories. Are twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's nine on Wall Street. The following is an editorial from

Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Negotiations to revive the twenty fifty nuclear agreement with Iran have reached yet another impass, with Tehran pressing for last minute concessions. Most observers now expect talk to languish until after the US midterm elections in November. Further delay is risky. The I A E. A. Estimates Iran already has enough

enriched uranium to build a nuclear weapon. Iran has also blocked the agency from monitoring how many advanced centrifuges its manufacturing, raising the possibility it could continue enriching secretly even if the deal is revived. That means the US will need to take many of the same actions to contain the threat, whether the deal is resurrected or not. Shifting to so called Plan B now could persuade Iran to back off its most unreasonable demands, and would help the US deal

with the consequences if it doesn't. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or O P I N go on the Bloomberg Terminal. This has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday at this time, terminal customers can read more at O P I N go. Ahead of the market open. Ahead of August, CPI futures are higher, SMP futures up

fifteen points now futures up a hundred fifteen. NASTAC futures are higher by forty points. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather. Some lingering showers should end by around lunchtime. Low eighties for an afternoon high sunshine low eighties tomorrow, sunny, mid seventies by Thursday. Right now cloudy seventy degrees in Central Park. Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com,

the Bloomberg Business at and at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Karen. Moscow and US Dock Index futures on the rises morning ahead of key inflation data do out later, Treasury yields dipping and the

dollar extending a decline. Who checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P future is up about sixteen points now, Futures of a hundred nineteen NASDACK futures up forty The decks in Germany's up a quarter percent ten, Your treasury up ten thirty seconds. You have three point three one percent they yield on

the two year three point five two percent. Nine X Screwed oil is up one and a third percent of a dollar seventeen at eighty eight dollars nine five cents of barrel co makes gold down a tenth of upper cent or two dollars at seventeen thirty eight sixty ounce, the euro one point one six three against the dollar, British pround one point one seven oh nine and the end one forty two point to five. And looking at bitcoin this morning, it's little change at twenty two thousand,

three hundred ninety dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. Final farewell from Scotland to their longest serving monarch. A stream of visitors believed to be a mile long, lined up to pay their last respects as the queen lies and rest in Edinburgh for twenty four hours. The Queen's coffin will later be taken to London to lye in state for

four days. Ukrainian troops continue to pile unrelenting pressure on retreating Russian forces. They are seeking to hold on to their sudden momentum that has produced major territorial games. Monday Night football, the Seahawks upset the Broncos seventeen sixteen and baseball the Men's lost to the Cubs five to the Giants.

One Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Blare and this is Bloomberg. Nathan. Okay, Michael, thank you are coming up to five forty nine on Wall Street Live from the Bloomberg Interacted Brokers studios. This is Bloomberg Daybreak on a morning where we're seeing a major development in one of the many investigations surrounding former

President Donald Trump. For details, we turned to Joe Matthew, our Washington correspondent, host of Sound on Here on Bloomberg Radio, joining us live from our Bloomberg studios in the nation's capital. Joe Uh tell us more about this major escalation. We're hearing dozens of subpoenas. What's this. It's it's pretty incredible, and you know, it's getting to be difficult to keep

all of the investigations straight here. This is the Justice Department, which is of course investigating attempts to overturn the presidential election. Were dozens of campaign operatives, allies of former President Donald Trump, receiving these subpoenas over the past couple of days. One of them was Bernie Carrick meth In, the former police

commissioner New York City Police commissioner. And we know, of course that that he was in the so called war room at the Willard Hotel block or two away from the White House, and his loom large in this whole investigation. They are specifically, as we understand, and the New York Times has done some good reporting on this, asking for information about efforts to create fake electors in a number of swing states who would resist remember certification of Joe Biden.

That was the plan. This is what they are looking into now. As you say, it is kind of difficult at this point to sort of keep track of the multiple investigations surrounding the former president. So this is separate from the other Justice Department investigation into the into the boxes of documents at marl Lago, right, Yes, and and

we need to we need to keep this straight. Also progressing as we speak here, the Justice Department accepting the Trump nominee, if you will, uh, the individual the judge who the Trump legal team asked for to be a so called special master. Judge Raymond Deary is the name of former chief federal judge in New York. Is apparently acceptable to all parties, and so that is going to be who's digging through, uh these potentially thousands of documents,

at least hundreds as we understand it. That is a separate track, and the January six Committee on Capitol Hill is conducting its own uh investor gation will call it, but it's not one that will end in charges because it's congressional. By the way, Nathan, they're talking about doing

another hearing as soon as this month. Yeah, And I wonder, Joe, what, given that word that we did get that the House January six committee hearings are going to resume later this month, whether this latest development, first reported by The New York Times about the subpoenas, is going to play into that. It's it's they're they're kind of parallel investigations. Well, there's a lot of overlap here, that is for sure, and

that's why it is difficult to delineate. It's it's up to the Department of Justice, of course, how they want to proceed. On this, and it's difficult once they really get going here, as we've seen with the Moral Lago investigation, sometimes it's unclear exactly what they're doing in real time. That's by design. It's only because of Donald Trump, who has issued any number of of social media posts and statements that have really brought us the most information that

that we have received on this. And on top of all this, Joe, we're hearing that there could be yet another line of inquiry on Capitol Hill based on this new book that's coming out today. You just want to go deeper, Nathan, Yes, this is true. And by the way, there are any number of books about Donald Trump. This was attention of Dick Durban, who is at least as of now, of course, the chair of the Judiciary Committee,

and it certainly got his attention. Here allegations that President Trump's Justice Department went after critics of the of the president tried to prosecute them, and specifically Greg Craig, who you might remember that name, a former Clinton administration official, one of one of the White House he was White House counsel, one of the lawyers in the Clinton White House prosecuted for political reasons. According to this report having

found no reason to bring charges. He was later acquitted in a case that he was in which he was accused of lying about work on behalf of the Ukrainian government. But but Nathan, it led to nothing. Lots to keep track of, Lots to follow. From Bloomberg Washington correspondent Joe Matthew.

We didn't even get to the policy or the announcements happening on the White House on Capitol Hill today, but we'll do that in our next hour as Bloomberg Daybreak continues here Joe Matthew, our Washington correspondent, joining us from our Bloomberg studios in the nation's capital. Karen Alry Nathan, thank you. It is five fifty three on Wall Street. It's time for the Bloomberg Law Report, brought to you

by American Arbitration Association. This is Disputes are Inevitable, Resolve Faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a d R dot org. Let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger. New York Governor Kathy hokel is allowing her pandemic related the emergency powers to expire. She says COVID cases are under control.

New York Federal court records show that IBM has tentatively settled to leading class actions that accused the company of getting rid of older employees and replacing them with younger ones. Records from a California will coord Indicata Starbucks customer settled her claims that the coffee Chains hot chocolate, advertised as ethically sourced, is produced with child labor. 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 Banks, and now another legal story we're watching this morning brings us to Ball Street, where a federal appeals court has saved City Group from a nearly billion dollar mistake. Last August, City mistakenly paid out more than nine hundred million dollars of its own money to a group of lenders, expecting an interest payment

on behalf of Revlon. Initially, a judge ruled that Revlon only needed to send back half the money to City, but now a second circuit judge has reversed that ruling. For more in the case, Bloomberg's June grass So speaks with Eric Talley, a professor at Columbia Law School. Eric, you compared this appellate process to an episode of the

Twilight Zone. Tell us why. But one of the things that was difficult, especially after the trial court's opinion, was that we knew that this issue was being appealed to the Second Circuit, and we didn't know what the Second Circuit was going to do with it, whether they were going to affirm it, whether they were going to reverse it, where they're going to contract out the job to the New York court system, which they might have done. And

in the interim, what happened is that Revlon filed for bankruptcy. Well, bankruptcy is a process that requires absolute clarity about who is owed what, and here we were in the middle of not knowing who, if anyone, was owed this money by Revlon or by City Bank, and the bankruptcy process was going forward without having any resolution from the Second Circuit.

So that's why it was a little bit in the Twilight Zone, because there was just kind of a surprising and almost disabling amount of uncertainty having to do with what was the status of this mistaken payment, whether City Bank could qui it back, whether City Bank became a lender since they paid off the other lend, or they get to step in their shoes, or whether the debt of Revalon just mysteriously disappeared. And we sat waiting for a year to figure out how the Second Circuit was

going to rule on this. The trial judges decision allowing the creditors to keep the more than half a billion dollars accidentally sent to them was a surprise. So was the second Circuit's decision reversing that opinion not a surprise. I think it depends whom you asked to me. It was not surprising on the overall merits of the case itself.

It seems highly implausible that someone that you're about to sue will suddenly, without trying to get a settlement agreement with you or a standstill agreement, suddenly just pay off the money. It just kind of taxes one's common sense

to think that that would even be possible. And that's important because this limited finders keeper's doctrine requires as an absolute necessity that the person that gets the mistaken payment doesn't know or doesn't even have eason to know that it's a mistake, and that just didn't seem likely here.

And that's Ary Tallyer, professor at Columbia Law School, speaking at the Bloomberg sto in grass So catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast are downloading the show at Bloomberg dot com slash podcasts. 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 futures are higher this morning, SMP futures up about eighteen points down futures of A hundred thirty two and NASDAGG futures up fifty one and still ahead. On Bloomberg daybreak, we would check on the business headlines and all the news you need to start your day. And this is Bloomberg