Bloomberg Daybreak: September 14, 2022 - Hour 1 (Radio)

farm products and autos. Former New York Governor Cuomo files and ethics complain against the A G blush Ukrainian troops keep up the pressure on fleeing Russian forces. I'm Michael blarn More and I'm John Stashower. And sports. Another big night for Aaron Judge, two Armbrons and the Yankee win

over the Red Sox. The Mets lost again to the cub That's all straight ahead on Bloomberg Day Break on Bloomberg eleven Freoo, New York, Bloomberg one, Washington, d C, Bloomberg one or six one, Boston, Bloomberg nine sixty seven, Francisco, Syrius x M one nineteen and around the world on Bloomberg Radio dot Com. And via the Bloomberg Business Act. Good morning, I'm Nathan Hagar and I'm Karen Moscow and

US futures are on the rise 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, SNP future is up twenty four points this morning, down features of a hundred fifty three and NASDAG futures up seventy eight. Ten year treasury down six thirty seconds. You have three point four three percent and they yield on the two year at three point seven six percent.

Nathan well Karen stocks are coming off their worst day since twenty twenty. The SMP five hundred dropped four point three while the NAZDAC plunged more than five percent. It was all fueled by hotter than expected inflation data, which is increasing bets for bigger rate hikes from the Fed.

Carol Schlife, his deputy chief investment officer at Beimo Family Office, the market desperately wants to figure out a bullish tone, and they've been fighting the Fed all year, and the it's been unequivocal saying we're gonna you know, they communicated pretty clearly that it's the three quarters of basis point rise. And I think this number took everybody by surprise, but the data has been really sloppy month a month. Carol Schleife at BEMO Family Office says next week's FED meeting

will be crucial for markets. Well, Nathan, the selloff spread to Asia over and night, but the price action was more muted than what we saw in the US. Japan's Nika dropped two point eight percent, while Hongo Kong's Hang Sang fell two and a half percent. We get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette,

Good morning Karen. The yen rallied further away from the closely watched a hundred and forty five per dollar level after the NICK reported the Bank of Japan conducted a so called rate check in the currency market, a move considered a precursor for intervention. Officials in South Korea also ramped up verbal intervention, while China Central Bank sent the daily reference rate on the one at the strongest bias

on record. Asian stocks had their biggest drop since June entre day, with Australian Chinese tech stocks and Phonetias, the laggs in Sydney Juliette Sally Blimber Daybreak juliet Thanks his inflation and higher rates continue to weigh on markets, the Fed still has a long way to go. That's according to legendary investor Mark Mobius, who says the feds benchmark interest rate could hit nine percent. Their game plan is to make sure that the interest rate is higher than inflation.

That's the way they believe the way to kill inflation. So you have eight percent CPI, that means you have to have nine percent interest rates. If that forecaster Mark Mobius is right, rates would climb significantly higher than the current two and a half percent target rate. Well, Nathan the broad based Sell Office putting more pressure on the Fed to keep up aggressive policy. But when it comes to politics, President Biden says he's not worried about the

threat of inflation. The stock market doesn't necessarily reflect the state of the economy, as you well know, and the economy is still strong. Unemployments, low jobs are up, manufacturing is could so I think it's uh. I think we're gonna be fine. Worried about the inflation number those No, I'm not the President spoke after hosting a celebration at the White House for the Inflation Reduction Act. After those remarks, Bloomberg political contributor Rick Davis said Democrats are starting to

look out of touch on the economy. It says they cannot get out of their own way. This is a ad ready to be made. Every Republican is going to have this SNAr quiver and frankly, they give back Republicans a message that was starting to dwindle, which is, oh my god, we we gotta quit talking about inflation. Well not now. Rick Davis spoke with our Washington correspondent Joe Matthew on Bloomberg Sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio. In the UK, care

and there's some slightly positive news on inflation. Prices have gone down a bit, easing off the highest rate in four decades. Today's consumer price index rose at an annual rate of nine point nine. That's a drop from ten point one in July. The Bank of England meets next week. It's expected to raise interest rates either fifty or seventy five basis points. Well, Nathan the bigger story in England

right now centers on Queen Elizabeth the Second. Her confin is now at Buckingham Palace as people queue up to pay their respect to the Queen, and we go live to London and get the latest from Bloomberg's You and Parts You and Good Morning, Good Morning, Karen and Nathan. Queen Elizabeth is said to leave bucking In Palace today for the very last time, departing at two twenty two pm. He Majesy's coffee will be transported by horse drawn gun

carriage through St James's Park and onto Westminster. Walking behind his mother's coffin will be the new King, King Charles the Third, followed by the senior members of the royal family. The Queen's coffin will line states in Westminster Hall, the ancient heart of the British Parliament, for four days until her funeral on Monday. As many as a million people are expected to join the line to walk past her caskets in London. I'm You and Part Spin by Daybreak,

all Right, You and thank You. Geo politics is also in focus this morning. President Shi jin Ping is making his first trip outside China in more than two years. Gives him a chance to meet Vladimir Putin in person for the first time since Russia began its invasion of Ukraine. We get more from Bloomberg Stephen Angle in Hong Kong. Obviously, for Putin he needs China's support. Perhaps the war, according

to many calculations, is not going as planned. And for you know, Shed and Ping, he is again steadfastly sticking to this plan of decentralizing Western institutions and creating a narrative from a Chinese perspective. Bloomberg Stephen Angle reports she and Putin meet tomorrow in Uzbekistan on the sidelines of a security forum. First President, she makes a stop in Kazakhstan today and back here in the US, Nathan, a

big labor fight is making head lines. A strike set for tomorrow could prevent American railroads from transporting firm products and other key goods, and could cost the US economy two billion dollars a day. President Biden is personally trying to break the long jam between railroads and labor unions. Labor Secretary Murdie Walsh, We'll meet with railroad and union

representatives today. Futures moving higher care and we have SMP futures up twenty five points right now after yesterday's route down. Futures up a hundred sixty one. NASTAC futures on the rise by eighty three points. The tenure treasury is down seven thirty seconds. The three point three NIMEX screwed is up four tenths per cent or thirty one cents at eighty seven sixty two a barrel. The euro just below parody against the dollar. Local headlines and a check of sports.

Just ahead. This is Bloomberg at five oh seven on Wall Street. Were sixty five degrees in Central Park. Got a water main break Scott southbound Root Tuo two closed by Henry Street, Morristown. 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.

Former New York Governor Andrew Cuomo filed and ethics complain against State Attorney General Letitia James about the way she handled a sexual harassment investigation that led to his resignation last year. Cuomo questioned the accuracy and credibility of the investigations findings, a legend. James, a fellow Democrat used the probe to tarnish him and further her own political interests. Cuomo says James, who briefly ran for governor, had her

own politically motivated and self interest driven agenda. Cuomo resigned in August of last year. Rhode Island Governor Dan McKee. On Tuesday's Democratic gubernatorial primary, he thanks supporters, so I have to stand here before you tonight, not just as your governor, but as the Democratic nomination nominee for governor of Rhode Island. Governor McKee at the most with thirty three percent. In the fall, McKee will face Republican Ashley Kellis,

who got eighty four. In New Hampshire, the Republican contest for Senate remains a tight race between conservative Donald Baldock and the more moderate Chuck Morrise. Republicans see Democratic incumbent Senator Maggie Hassan as beatable in the general election. Primaries were also held in Delaware. The Mayor of Boston is thanking law enforcement for a speedy response last night after a package exploded on the campus of Northeastern University injuring

at AFT member. The forty five year old man suffered minor injuries to his hand and was taken to a local hospital. Mayor Michelle Woo, I just want to thank all of our first responders for very, very swift, coordinated and effective response. Within minutes, our police department and E M S and Fire department were here. Mayor wu says the search revealed a second similar package that was ultimately

rendered safe by the bomb squad. Ukrainian troops continue to pressure retreating Russian forces, pressing deeper into occupied territory and sending more Kremlin troops fleeing. Pentagon spokesman Brigadier General Pat Writer on Russia, Clearly they've demonstrated their intent to keep fighting uh In in Ukraine into prolong their illegal occupation. General Writer. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists

and analysts more than twenty countries. Michael Barren, this is Bloomberg. Nathan. Hi, Michael, thank you. Almost five ten on Wall Street, time for the Bloomberg Sports Update. Good morning, johns Teshun, all right, good morning, Nathan. Aaron Boone was asked last night to describe Aaron Judge's performance in this remarkable season. He said, I have run out of adjectives in Boston, Judge and a solo home run in the sixth that need to tie the game at three, and then he came up

too and inans later on one swung on. There it goes Jeep love Field. It is hot. Let us far head us God out of the building, over the high green monster, over the monster seats out on Sir Landsbane. He is phenomenal. The second home run of the night for Judge, his fifty seventh of the year, and we're all tied at four. Game is still four four tenth inning when labor Tora has delivered a three run double. The Red Sox got two back bottomed the tenth, but

one deep Peralta struck out Rafe Devers. The Yanks held on to win seven six. It's the tenth multi home run game of the season for Judge. The record is eleven Hank Greenberg ninety eight, and with fifty seven homers, he is incheon closer to Roger Marris's sixty one at City Field. Second straight Mets loss to the Low Lea Cubs four to one, or air loss for Jacob de Graham, and the Mets didn't help by getting only four hits in Atlanta, won five one at San Francisco. The Braves

are only a half game behind the Mets. Mike Draft did not homer for the Angels. He was trying to tie the record with a home run in eighth straight games. The twins against the Royals were two outs, some of combined no hit or didn't get it. W NBA Playoffs, Las Vegas eighty five, Connecticut seventy one, aces up to nothing. They can win the championship tomorrow with them, and he gets sung. John Stashower, Bloomberg Sports. Nathan all Right, John,

thank you. SMP futures up twenty one points right now, death futures up a hundred thirty six. Danstack futures up sixty eight points. The tenure treasuries down seven thirty seconds. Deal three point four three percent. Markets looking to make a little bit of recovery after yesterday's route. We'll check in next with st Dwack, the chief investment officer at Flow Bank. This is Bloomberg Bloomberg Day Break, brought to

you by Pepack Private Wealth Management. Pepack Private Wealth Management knows that a portfolio is more than a collection of assets. It's a path to your future, visit pepack private dot com and begin your financial legacy Today, 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 when I'm Karen Moscow. US knock Index future is rallying this morning after shares had their biggest drop in more than two years yesterday, with the S and P five hundred following more than four percent, of the nastacks sliding more than five percent and gave to the dollar retreating after jumping the motion in three months and attendue. Your treasury yelled is taking higher, hovering near a decade peak. We checked the markets every fifteen

minutes about the trading day on Bloomberg. Right now, SNP futures are up twenty one points down futures of A hundred twenty eight and nasdack future is up sixty six. The decks in Germany's down three tenths of upper set ten. Your treasury down seven thirty seconds. You have three point four three percent they yield on the two year three point seven seven percent. NIMEX Scrude oil is up a quarter percent or twenty three cents at eighty seven dollars

fifty four cents a barrel. Comicsch down two tenths percent or three dollars sixty cents is seventeen thirteen ninety. Announce the euro point one against the dollar British pound one point one five four zero the end one forty three point three seven And look at a bitcoin, it's up half percent at twenty thousand, three hundred fifty dollars. 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. Queen Elizabeth the Seconds Coffin has arrived at Buckingham Palace ahead of today's procession through London to Westminster Hall. She will lie in state for four days until her funeral. NBA team owner Robert Sarver has ben from representing the league in any capacity for one year. There were calls for tougher punishment for alleged racism and massaseni. In baseball, the Yankees beat the Red Sox seven six and ten innings, New York's Serin Jodge at two homer's

to reach fifty seven this season. The Mets lost, the Orioles beat the Nationals for three, the A's and Giants lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts and more than a hundred twenty countries. Michael Barren, this is Bloomberg, Nathan. Thanks Michael. It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios.

This is Bloomberg day Break. Let's try to make sense of this market after yesterday's inflation read Sti Dweck joins US Live, chief investment officer at Flow Bank ste Good morning. We are seeing futures in a bit of recovery mode after yesterday's route. Is this a debut by not today? No? Uh, you know, we we are going. I mean, we had a very big movie yesterday, write down almost four across most indicase, and we basically erased most of what happened

last week. I think as we digest this, we'll see that maybe it was a little bit of an overreaction, but the fact that the August month on month print was positive and not negative was clearly a problem. And markets are now repricing a lot more rate hikes into the end of the year, and I think that's going to have an impact on markets for a couple more days. Interesting that you term it a little bit of an overreaction. I mean, it was a four point drop for the

most more than two years. Can you sort of explain a little bit more why you think it might have been just a little bit of an overreaction rather than it was a significant drop yesterday? SD It was. It was a very big drop yesterday, for sure, But if you think of it in the context of the previous few sessions where we've had this big run up in markets basically expecting the softer inflation print, reversing a lot of that in one go was also maybe not as surprising.

So I think that's why I'd say a bit of an overreaction. Some of the reaction is also in a way justified because the inflation prints are not coming down as fast as we'd like h some of the stickier components are proving sticky, and that means that the FED is far from being over So we're also sort of deep pricing a little bit of that hope of a FED pivot, even though Powell had already done a very

good job at removing that expectation at Jackson Hole. Oh, we're certainly seeing the market now removing that expectation of a pivot, with swaps markets now fully pricing in seventy five basis points. Let's get into that debate a little bit. What do you think the Fed's gonna do next week? I think they're gonna do seventy five. I think we the market is between seventy five and a hundred, so clearly up from where we were just a couple of days or weeks ago. Um, I think a hundred could

scare everyone. I think they know they've done a couple of seventy five, they know it takes three to six months for this to filter through into the economy. They're gonna do seventy five. They're gonna signal that they're going to keep going. So we already see that the two

November December are getting repriced higher as well. UM, I'm not sure three four or five months in on one inflation print, when you have a lot of other data pointing towards this inflation, that a hundred is the right signal. What does it mean for stock valuations if we do get that seventy five basis point move, or if the FED potentially surprises and comes in even stronger. I don't

think the seventy five surprises markets. It's priced in at this point, and you know, even before the print, we were between fifty and seventy five, so we knew more

hikes were coming. I think it's more about the terminal rates, which was, you know, may now be shifting to four or four and a half as an expectation for the end of the year and then probably either more hikes at the beginning of next year, or is she've been shifting further back any rate cuts um that markets still had priced in for the end of So from a valuation perspective, in the short term, not a huge move. Even if we get seventy five hundred scares markets a

little more, so we get another drop there. But if we get the seventy five and we get an indication that more is coming, I think a lot of that is priced in or will be priced in by next week. So in our last minute here asking what could the stronger FED potentially mean for stock valuations? What could it mean for earnings expectations going forward for the rest of the year. There was a view that earnings expectations had to dip for the end of the year, and for

three they've proved relatively resilient. I think some of these prints are showing you that the earnings are going to stay relatively resilient. So that's not where I'd be more worried. I think you had a bond market that's saying inflation expectations are coming down, market actations are coming down. Hopefully consumer expectations will see on Friday what what the Michigan

survey says. So we need to see if those get completely repriced and if that has an impact on the equity market, because the equity market has been the more negative in terms of those of pricing in those tightening expectations so far. Thanks for this st as always great having you with us. S D. Dwag, chief investment Officer at Flow Bank. After the sell off yesterday, we are seeing a bit of recovery in the futures contracts. We have SMP futures right now higher by twenty four points.

Staff futures are up one hundred sixty NASTAC futures up eighty two points. The tenure. Treasury is down eight thirty seconds, yield three point four three percent, yield on the two year three point seven seven percent. Crews getting a bit of a lift this morning as well. We have nime X screwed up four tenths per cent or thirty five cents eighty seven dollars seventy cents a barrel. The euro right now point nine eight against the dollar. You're listening

to Bloomberg Taper and at five on Wall Street. Bloomberg Daybreak is brought to you by pe Pack Private Wealth Management. A portfolio is more than a collection of assets, it's a path to your future. Visit pe Pack Private dot Com. Broadcasting live from the Bloomberg Interactive Brokery Studio in New York.

Bloomberg Eloving Freedom to Washington, d C, Bloomberg N one to Boston, Bloomberg one O six one does Ent Francisco, Bloomberg Now sixty to the Country, Sirius xm Cho one nine Tea and around the globe, the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager, and I'm Karen Moscow, We're just about four hours away from the open of US trading. Let's get you up to

date of the news. You need to know what this show. Our US futures are higher in the wake of yesterday's sell off, which saw the SNP five hundred drop more than four percent and an AZDAC plunge over five percent. Carol Schleef, Deputy Chief Investment Officer at BIMO Family Office, says it may be startling, but we should keep it in perspective. But I know that the down days are scary, but I watched seven happened. That was twenty three percent

in a day and the year still closed up. Carol Schleif at BIMO Family Office says next week's FED meeting will be crucial for market sentiment. Sell off Karen splared virtually no corner of equity markets and also cost America's richest billionaires dearly. We get more on that from Bloomberg's Doug Krisner. Jeff Bezo suffered the biggest hit. Data from the Bloomberg Billionaire's Index show his wealth plunged by nine

point eight billion dollars. Elon Musk's net worth fell by eight point four billion, and the fortunes of Mark Zuckerberg, Larry Page, Sir Gey Brenn, and Steve Balmer all declined by more than four billion dollars. In total, the fortunes of a America's richest tumbled by ninety three billion dollars. You know, just last month the same group lost seventy eight billion dollars in a day. After an eight minute speech from fed share J Powell in New York, I'm

duck prisoner Blueberg daybreak, All right, Doug, thank you. In the UK, there's some slightly positive news on inflation. Prices have gone down slightly, easing off the highest rate in four decades. Today's consumer Price index rose at an annual rate of nine point nine percent. That's a drop from ten point one in July. Well, the bigger story in England,

of course, Karen centers on Queen Elizabeth the Second. Her coffin is at Buckingham Palace now will soon be taken to Westminster Hall where it will line state for four days until her funeral Monday. The UK Army is helping police and London authorities get ready for the event. London Mayor City con says it is a massive job. We will have almost three hundred world leaders and that team's lo trologies out of the l cities ever seen the sort of present is going to say over the next

few days. If you think about a marathon carnival, previous rule wedd ends the impics in one London mayor city consas rail companies have announced extra service as thousands of mourners head into the city. Well nacome backing around the U S. A strike set for tomorrow threatens to hit supply chains hard. They could prevent railroads from transporting farm products and other key goods and coust the U S

economy two billion dollars a day. President Biden is personally trying to break the long jam between railroads and labor unions. Labor Secretary Murdie Walsh will meet with railroad and union representatives today. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg, Thanks Caring. It's five thirty three on Wall Street, sixty four degrees in Central Parks. Still dealing with that water main break in Morristown. It's

got southbound two oh two closed at Henry Street. More coming up in traffic first, Michael Barr with what else is going on in New York and around the world, Michael Nathan, thank you very much. Former New York Governor Andrew Cuomo filed and ethics complain against State Attorney General Letitia James about the way she handled the sexual harazon

An investigation that led to his resignation last year. Cuomo questioned the accuracy and credibility of the investigations findings, alleging James, a fellow Democrat, used the probe to tarnish him and further her own political interests. The final primaries for two ended with voters in the Republican Racist choosing between moderates

and far right candidates. In the New Hampshire US House race, former Trump White House aide Carolinline Lovett beat out fellow Trump administration official Matt Mowers with thirty four point six percent of the vote. She will face Democrat Chris Pappas in November in the race for governor of New Hampshire. Democratic nominee doctor Tom Sherman, who ran uncontested, will challenge GOP incumbent Kris and new Knew, who won his primary with nearly seventy of the vote. In Rhode Island, Governor

Dan McKee won the Democratic gubernatorial primary Tuesday. He thanked his supporters the world is gonna change tonight for Rhode Island. It did for us, and oh we're gonna take full advantage, but thank you so much. Governor McKee will face Republican Ashley Kellis in November. Ukrainian forces have shown a remarkable ability to take advantage of opportunities that present themselves on the battlefield. That's according to Pentagon spokesman Brigadier General Pat Rider.

We've seen a number of Russian forces, especially in the northeast in the Kharkiev region, cross over the border back into Russia as they retreated from the Ukrainian counter offensive. General Writers has based on the abilities demonstrated by the Ukrainians in the field. It came as no surprise former Independent Consul ken Starr, who led the investigation into Bill Clinton's affair where the Monica Lewinski has died in Houston.

He died after complications from surgery. Ken Star was seventy six 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. Michael Barr and this is Bloomberg, Nathan, Michael, thank you. On Wall Street. John Stanshower has a Bloombridge sports update. Dathan Yankees and Red Sacks first of a mini two game series in Boston, where there are a lot of

empty seats. The Socks are, after all in the last place. But quite a game Boston. At three different leads, Yanks kept coming back to tie. Both teams hit three home runs and the game was tied at four tent thinning on one line is a fix shit in the right center field in the alley'll go all the way of the wall. Kind of all love the scores. Judge scores, and the throw home is late three run score Floriale scores. It is a basis clearing three run double for Glaver Retre.

Socks got two back bottle, but samp Yanks held on to win seven six. The Yankee home run from Marwin Gonzalez and two solo shots for Aaron Judge six inning off Vic Pavetta that tie the game at three. Eighth inning off Garrett Whitlock to tie the game at four. That one left Fenway landed on lands down streets, so Judge took a big step towards Roger Marris. Nineteen games left, he's at fifty seven homer's twenty, more than anyone else

in the majors. This was supposed to be the easy part of the Mets schedule, but against Washington, Pittsburgh, Miami, and now the Cubs, the Mets just four and six in their last ten games at City Field. They had only four hits. They lost four to one as Adrian Sampson out pitched Jacob de Graham. Atlanta won. The Braves were only a half game behind NFL two big Week one injuries, both perhaps not as serious. A Sphere Dallas QB Dak Prescott will be back in a month from

his injured hand. Pittsburgh's t J Watt torn peck muscle, but he might return in six weeks. Denver coach Nathaniel Hackett now admits he should not have tried a failed game winning sixty four yard field goal in the lost Monday Night in Seattle. John Staphward Bloomberg sports Nathan. Thank you John, five thirty seven on Wall Street Time for the Tri State Business Report. Here's Bloomberg said, Corey related Companies has landed du tenants at fifty Hudson Yards ahead

of its opening later this year. The three point eight billion dollar skyscraper counts Meta Platforms is a major tenant. It has new and expanded leases with companies including the Truest Financial Business, Vista Equity Partners, and Service Now. Uber has agreed to pay New Jersey one hundred million dollars in back taxas the status said the righthling company misclassified

drivers as independent contractors. The settlement appears to be a retreat from the company's claim that drivers should not be classified as employees. About fifty thou people who left New York City for Connecticut during the pandemic or staying put despite calls by big banks and other Manhattan employers to bring workers back to the office, Governor Ned Lamont says for now there's been no sign of a major exodus of transplants from his state. That your Bloomberg Try State

Business Report, my mid Corey Thanks 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 Podas Kant and X in Los Angeles. We're talking about a report that Paramount Global is considering merging at showtime streaming service into Paramount Plus. Um Corney Donahoe on

w h A S and Louisville. Starbucks is investing an additional four hundred fifty million dollars to revampant stores. I'm Ginas Servetti in for w b B b M in Chicago. I'm reporting that Chicago Land consumer inflation is up eight point eight percent year over year in August. That's a faster pace than the national rate. I'm Stephen Carroll and Bloomberg d a B Digital Radio in London. We've been reporting on a slight easing of inflation in the UK ahead of next week's Bank of England decision. I made

Corey on w w J in Detroit. I'm reporting General Motors Help Driving Car Unit is developing its own computer chims 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 five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial

was written by the Bloomberg Editorial Board. Russian President Vladimir Putin told a gathering last week that his country had not lost anything and will not lose anything in the Ukraine War. He may be less certain of victory today, unoffensive by Ukraine's armed forces has made spectacular progress, reversing gains that took Russia months to achieve. Whatever happens next, there's no question that the charge has been a major

strategic and operational defeat for the Kremlin. Allied nations must help Ukraine make the most of it by accelerating weapons deliveries and holding the line on trade and sanctions. Of course, Putin isn't defeated yet, but however, the conflict unfolds from here. All wars end at the negotiating table. The West should ensure that Ukraine is in a strong position when it gets there. This editorial 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. Listen for Bloomberg Opinion editorials every weekday. At this time, terminal customers can read more at opie I n go. Futures moving higher this morning. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather, sunny, less human today, highs in the low eighties. Is gonna

be now. I send to the week actually with abundant sunshine Tomorrow and Friday, both days in the upper seventies. Right now sixty four 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. This

is a Bloomberg Business blash and I'm camerin Moscow. US Dock Index Future is rallying this morning after shares had their biggest drop in more than two years yesterday, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg SNP Future is up nineteen points down. Futures have a hundred eighteen nasdack Futures up sixty five. The decks in Germany's down a third of up percent.

Ten year Treasury down seven thirty seconds. You have three point four three percent they yield on the two year three point seven seven percent. Ni Max. Screwed oil is up two tens per cent or sixteen cents at eighty seven dollars forty eight cents of barrel comics. Gold is down two tens per cent or two dollars eighty cents at seventeen fourteen sixty and ounce. The euro is at one point zero zero zero five against the dollar. And that's of Bloomberg Business Flash. Now here's Michael Barr with

more on what's going on around the world. Michael Karen, thank you very much, Queen Elizabeth. The seconds Coffin will lie in state for four days from this afternoon in London. It comes amid warnings that members of the public wishing to attend to pay their respects at Westminster Hall could face up to a thirty hour wait. The final primaries

for twenty two are over. In the New Hampshire US House race, former Trump right House aid Caroline Levitt beat out fellow Trump administration official Matt Mowers with thirty four point six percent of the vote. She will face Democrat Chris Peppis in November. Grhode Island Democratic governor Dan McKee faces off against Republican Ashley Kellis in the fall. In baseball, the Yankees beat the Red Sox seven six and ten innings. New York's Are and Judge hit two homers to reach

fifty seven. The Men's lost, The Orioles beat the Nationals for three, The A's and 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 more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael, thank you. We're coming up to five forty nine on Wall Street Live from

the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Want to get more now on the hotter than expected read on consumer prices we saw yesterday and the market reaction joining us now. Drew Maddis, chief market strategist at MetLife Investment Management, Drew, Good morning, four percent drop for the SMP five hundred after the CPI print. Did the route match what we got in the data? Uh? It did, and it didn't. The what people are responding to is

not necessarily that we're gonna go. The Fed's gonna go seventy five next week versus fifty, but the fact that if they go seventy five next week, it means that

they really can't drop down to media. After that, they have to probably drop down to fifty if they think it's possible, and then they can drop down again to So it actually didn't add just twenty five basis points of rate hikes to this to the whole expectations, but rather something closer to a hundred basis points of expectations, a hundred basis points of expectations over the next two meetings,

or could we see a hundred basis points next week. Well, a hundred basis point move next week would probably send the wrong signal for the FED if if they're thinking about, you know, we need to contain inflation, but we need to make sure people understand that we aren't just trying to rush to a recession um than you know, seventy five sends that signal because it's a continuation of what they've done previously, whereas if they went to a hundred,

then people would begin to think, is the next meeting a hundred hundred and fifty? You know, where does it end? What is the risk for a recession Now, is it baked in at this point? And how long does it last? I mean, our baseline view is that there will be a recession next year. Uh, and it will not be one will be debating about what. You'll know it when

you see it. Um. I think that the risk of recession is growing because as much as inflation is something you want to get under control, we have to remember that. You know, if the FED wants to get inflation under control or the US govern want to get inflation under control, you can just shut the economy down, right. That is what we learned from the pandemic. Inflation is containable if you're aggressive enough. However, Uh, it comes with a cost.

And so you know, for the FED, uh, the idea is to actually contain inflation with the lowest cost possible. And I think, you know, going seventy next week, when you already have housing in a pretty bad situation, when there are hints that you know, maybe something's not entirely right with the consumer, um, you know, maybe we're rushing into a place instead of just letting things play out a little bit. All those rate hyps we've seen, we haven't seen the full impact from yet, are we seeing

higher inflation expectations getting baked into this market. And is the FED going to be able at some point to get to that two percent inflation target or is the target going to have to change? Well that you know, quite frankly, when they target expectations, what they're targeting is pretty much gas and food prices because that's what sets consumer expectations for inflation, because that's what you and I

buy frequently, um and repetitively. UM. So you know, every week, I know I have to go to the gas station, I know roughly how much it costs, and I go the next week it costs more. I understand there's inflation in the economy. Um. You know. I think the FED needs to back off from looking at inflation expectations from consumers and look more at whether people in financial markets are asking to be compensated for inflation. And there the data is a lot more mixed in terms of um,

you know, whether or not the FEDS contained inflation. In fact, there's you could argue that the FED never lost containment of inflation expectations. From a perfecsional inflation traders standpoint, we're getting producer prices the I guess the last read on inflation before next week's meeting. Is the final print on inflation going to make any difference for what the Fed

decides next week. No. I think the only thing they can really make a difference at this point, and it would have to be something truly spectacular, almost so spectacular that you might not believe it if you saw it would be something really bad and retail sales, it's not what we're expecting, But I think that could maybe push them back down to the fifty level if you got something that was both bad and credible. So in our last minute here, Drew, what about the effect of the

route we saw yesterday on financial conditions? Does that make any difference for central bankers? I think it should make a difference to central bankers. I think it's it's telling you that, you know, as much as everyone wants to see inflation contains, that there is a cost to be paid for containing inflation. And I think that's important to remember, is you know, it's about containing inflation over a certain timeframe at the lowest cost possible. It's not just about

containing inflation because that's easy. Actually, thanks Drew great having gone with us this morning. Drew Madis, chief market strategist at MetLife Investment Management. Karen Nathan, it is five or fifty three on Wall Street time for the Bloomberg Law Report. It has brought to you by American Arbitration Association. Business 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. And now to a legal story we're watching this morning and his first public comments since the Supreme Court eliminated the constitutional right to abortion, Chief the Justice John Roberts express concern that criticism of the Supreme court our controversial decisions has veered into attacks on its legitimacy as an institution. Poul since that decision have shown that the public's confidence in the

Court is at its lowest in modern times. For more, Bloomberg student Grosso speaks to constitutional law scholar Harold Krent, a professor at the Chicago Kent College of Law. Poles do show that public confidence in the Court is at an all time low. So should the Chief Justice be

concerned about people questioning the Court's legitimacy? The Chief Justice should be concerned about the legitimacy of the court, and I believe that he's generally concerned about it, and he has staked much of his reputation as Chief Justice on appolling in diligimacy of the court. But I think he is also partly to blame for the dip in court popularity and for the faith in the court as well. His vote carries no more way than any of the other justices. Explain why you think he's partly to blame

for the dipping confidence in the court. Well, there are a number of things that the Court has done, and obviously not all of his doing. Every time there is an era of politicization, people look at the court and say it's more political because people see riffs all the time. And of course he can't do anything about the risks

between the conservatives and the liberals. But in many cases he has seemingly hipped to the court by trying to take cases that they don't have to take in order to reach certain principles, by not be consistent in methodology, and those types of moves that he probably can control undermine the legitimacy of the Court. And of course the most everybody's minds. Is the abortion case. He would have upheld rovers way, but limited it. He couldn't control the court,

and the court pushed it back. And there's other cases where precedents seem to be willynily transcended by the court because the court wants to basically put their own stamp on the law and not be concerned with reliance interests, not be concerned with looking like an incremental court. You mentioned precedents, and the court seems to be changing the law,

not respecting precedent. And the Chief Justice was in the majority in the opinions that struck down New York's hundred year old gun law, the case limiting the e p as ability to address climate change, the cases breaking down the wall between church and states, voting rights cases, He's

in the majority in all those cases. He is in those cases and others I think suggest quite clearly that the quote is concerned with the having their moment in history as opposed to being conservative in the old fashioned sense of moving incrementally, of moving carefully. And I'll just give you one example of the Chief Justice as well. He has tried to impose a robust view of a unitary or strong chief executive under Article two of our

Constitution on the country. And he's done so in the face not only of precedent, but in the face of even history, because the first kind has created many structures that were not unitary. As Harold Grent, a professor at the Chicago Kent College of Laws, speaking with Bloomberg's Done Grosso.

Catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time or subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com. Futures this morning are on the rise. SNP futures up about eighteen points down futures they're up a hundred seven and NASDAG futures of

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