Bloomberg Daybreak: September 14, 2022 - Hour 2 (Radio)

Former New York Governor Cuomo files and ethics complain against the a G BLUs Ukrainian troops keep up the pressure on fleeing Russian forces. I'm Michael blarn More and I'm John Steward's fourth Another big night for Aaron Judge. Two arm runs in the Yankee win over the Red Sox.

The Mets lost again to the cold. That's all straight ahead on Bloomberg Day Break on Bloomberg Eliven Frio, New York, Bloomberg one, Washington, d C, Bloomberg one, O six one, Boston, Bloomberg nine sixty, Francisco, Syrius x M one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business Act and Good morning. I'm Karen Moscow,

I'm Nathan Hagar. Bloomberg Daybreak is brought to you by B and Y Melon's Pershing learned why the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent and manager risk at Pershing, dot Com and US futures are higher

this morning six oh one on Wall Street. We checked the markets every fifteen minutes throughout the trading day on Bloomberg, SNP futures up nineteen points and down, futures of A hundred twelve NASDACK futures up sixties seven and the ten year treasury down seven thirty seconds. You have three point four or three percent, and they yield on the two year three point seven seven percent. Nathan Karen's stocks are

coming off their worst day since twenty twenty. The SNP five hundred dropped four point three percent, while the NASTAC plunged more than five percent. It was all fueled by hotter than expected inflation data, increasing bets for bigger rate hikes from the Fed. Carol Schleiche, 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 FED has 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 to month. Carol Schlife at Bimo Family Office, says next week's FED meeting will be crucial

for markets. Well. Nathan Masseloff spread to Asia overnight, but the price action was more muted than what we saw in the US. Japan's NK dropped two point eight percent, while Hong Kong's Hang Sang fell two and a half percent. They get the recap from Bloomberg's Juliette Sally and Sydney.

Good morning, Juliette, Good morning, Karen. The yan 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 RT check in the currency market, a move considered a precursor for intervention. Officials in South Korea also ramped up verbal intervention. Well, China Central Bank said the day the reference rate on the one at

the strongest bias on record. Asian stocks had their biggest drop since June Intra Day, with Australian, Chinese, tex Stalks, and Japanese es the lagged's in Sydney Juliette Sally Bloomber daybreak Our Juliet thanks his inflation and higher rates continued away on markets. The FEDS 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. 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 interest rates. If that forecast from 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 off is 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 comedy is still strong. Unemployment slow, jobs are up, Manufacturing is good. So I think it's uh. I think we're gonna be fine. Worried about the inflation number. Those are no, I'm not. The President spoke after hosting a celebration at the White House for the Inflation Reduction Act.

After those are marks, Bloomberg political contributor Rick Davis says Democrats are starting to look out of touch on the economy. It's just they cannot get out of their own way. This is a ad ready to be made. Every Republican is going to have this near quiver and frankly, they give back Republicans a message that was starting to dwindle, which is, oh my god, we gotta quit talking about inflation.

Well not now. Rick Davis spoke at their Washington correspondent Joe Matthew on Bloomberg Sound on Catch the program week days at five pm Eastern on Bloomberg Radio. In the UK, there's some slightly positive news on inflation. Karen prices went down a bit, easing off the highest rate in four decades. Today's consumer price index in the UK rose at an annual rate of nine point nine percent, up from ten point one in July. The Bank of England meets next week.

It is expected to raise interest rates either fifty or seventy five basis points. But the bigger story in England right now, Nathan centers on Queen Elizabeth the Second. Her coffin is now at Buckingham Palace as people queue up to pay their respect to the Queen, and we go to London and get the latest from Bloombergy's un pass. Good morning, un Good morning, Karen and Nathan. Queen Elizabeth is set to leave bucking Palace today for the very

last time, departing at two twenty two pm. Her Majesty'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 other scenior 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 yourn part Splin by daybreak, thanks you, and geo politics is also in focus this morning. President she Jin Ping is making his first trip outside China in more than two years. It gives him a chance to beat 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, she didn 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 is in Kazakhstan today and Nathan back here in the U s a big labor fight is

making headlines. A threatened strike could prevent American railroads from transporting farm products and other key goods as soon as tomorrow and could cost the US economy two billion dollars a day. President Inviting is personally trying to break the long jam between railroads and labor unions. Labor Secretary Murty Walsh will meet with Railroad and you and representatives today. Futures are moving higher. Care and S and P futures up nineteen points, STOW futures up a hundred ten, NASTEC

futures up sixty five points. The tenure treasuries down seven thirty seconds, the yield three point for three, nim X screwed up four ten percent. At eighty seven sixty seven of Barrel. Local headlines in the check of Sports. Next, this is Bloomberg. It is uh six oh seven on Wall Street, sixty four degrees in Central Park. Got an accident at westbound l I E at Maurice Avenue. We're 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 an 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 allegend James, the fellow Democrat, used the probe to turnish him. Cuomo says James, who briefly ran for governor, had her own

politically mode ofvate it and self interest driven agenda. Rhode Island Governor Dan McKee won Tuesday's Democratic gubernatorial primary. He thanks supporters 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 eight In New Hampshire. The Republican contest for Senate remains a tight race between conservative Donald Buldock and the more moderate Chuck Morrise. Republicans see Democratic incumbent Senator Maggie Hassan as beatable in the general election. The final primaries two were also held in Delaware. The Mayor of Boston this thanking law enforcement for a speedy response last night after a package exploded on the campus

of Northeastern University, injuring a staff member. The forty five year old man suffered minor injuries to his hand and was taken to a local hospital their 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. We're here. Mayor wo says. A 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, depending on spokesman, Brigadier General Pat Writer on Russia, Clearly they've demonstrated their intent to keep fighting uh IN in Ukraine and to prolong their illegal occupation. General Writer says the progress by

the Ukrainians in the field came as no surprise. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan, Thank you. Michael six O nine on Wall Street Time for the Bloomberg Sports Update with John stashwar Pathan. 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 hit a solo home run six sitting and tied the game at three, and then came up two innings later, one long swung on there it goes. Keep the field. It is hot. Yous far head has got 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 an the game is still four four tenth inning when Glabor Torres delivered a three run double. The Red Sox got two back bottle the tenth, but Wandy Peralta struck at Raphael Devers and the Yanks won seven six. It's the tenth multi home

run game of the season for Judge. The record is eleven Hank Greenberg n thirty eight and with fifty seven homers, Judges inching closer to Roger Merris is sixty one at City Field. Second straight Mets loss of the low Ley Cubs four to one. Rare loss for Jacob de Graham. Mets didn't help gaining only four hits in Atlanta won five one at San Francisco. The Braids are only a half game behind. Mike Trout did not homer for the Angels. He was trying to tie the record for the homer

in eighth straight games. The Twins came up two out short of a combined no hitter against Kansas City w NBA Playoffs Las Vegas eighty five, Connecticut seventy one. So the Aces are up two games to none. They can win the w NBA Championship tomorrow night at the Mahigan Sun. John stash Award, Bloomberg Sports Okay, John, thank you. SMP futures moving higher by twenty one point, staff futures up a hundred twenty seven. Nastack futures are higher by seventy

two points now. The tenure treasury is down seven thirty seconds. The yield three point for three percent yield on the two year three point seven seven percent. Context on this market after yesterday's hotter than expected inflation, Sam stoveall of cfr A with US next Bloomberg eleven three oh Weather mostly sunny, turning less humid today with highs in the low eighties. Abundant sunshine tomorrow upper seventies, sunny upper seventies for Friday as well. Right now sixty four under a

clear sky in Central Park. Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com and Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Cameron Moscow. US stock index futures set to recoup some of the losses brought on by a hotter than expected inflation or fourth that wiped out more than one and a half trillion dollars from the SNP five hundred nearly are racing a four

day rally. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP future is up twenty two points this morning. Dal futures of a hundred thirty two, Nashtack futures up seventy six, and the jacks in Germany's down three tenths of uppercent ten. Your treasury down six 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 third of percent, or twenty nine cents at eighty seven dollar sixty cents in barrel Comic School, down a tenth of a percent on a dollar eighty at seventeen fifteen sixty announced the euro one point zero zero one eight against the dollar, British found one point one five six three and again one forty three point one three and Bitcoin this morning is up seven tenths percent at twenty thousand and three hundred

seventy dollars. As a Bloomberg Business flash, Now here's Michael Barr with Moore on what's going on around the world. Michael Karen, thank you very much. Queen Elizabeth, the seconds Coffin has arrived at Buckingham Palace ahead of today's procession through London to Westminster Hall. She reily in state for four days until her funeral. The final primaries for this year are over. Rhode Island Democrat Dan McKee now has the chance to be elected to his first full term

as governor. McKee assumed the states top office a year and a half ago after Gina Romando joined the Biden administration as Commerce Secretary. McKy got the most with thirty three percent. The key is the favorite as he faces off against Republican Ashley Kellis. In November. Primaries were also held in Delaware and New Hampshire. In baseball, the Yankees beat the Red Sox seven, six and ten innings. New York's Serin judge at two homers to reach fifty seven.

The Mets lost, The Orioles beat the Nationals for three. The A's and Giants lost. Global Needs 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 lar This is Bloomberg. Nathan Okay, Michael, thank you. At his six nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak. As we continue to assess the market reaction to yesterday's

hotter than expected Consumer Price Index. Were joined live this morning by Sam Stovall, chief investment strategist at c f R A. It's great to speak with you. Sam. Was at the right reaction for market to drop four the SNP or was it an overreaction? Good morning, Nathan, No, I think it was an overreaction. Um. Interesting how when you compare the eight point three percent for August with the eight five in July and nine one. In a sense, the direction is correct, but when you do look at

the monthly numbers, there were surprises. Um. So I think just too many people were leaning to an optimistic print from c p I, and as a result, they just bailed all at once. So what does this mean for the Federal Reserve? We're getting into this debate now about whether we're gonna see seventy five basis points again next week, whether the Fed could go as high as a hundred. What do you think the Fed's gonna do, sam? Um?

I think they're gonna go seventy basis points in September, follow it up with fifty in November, and then right now the estimate is in December. Uh. Since Alan Greenspan started to offer transparency to FED rate moves, we've never had anything higher than seventy five basis points. You have to go back to the late nineties, seventies, early eighties. Uh, and then we actually had seven times in which the FED raised rates by a hundred basis points, but that

was with the discount rate. What's the precedent for the kind of market reaction that we could see to this kind of aggressive tightening we're seeing from this Federal Reserve and to the persistent inflation that we've been seeing over the last several months. Well, first, I think, you know, let's talk about inflation. I mean, our expectation is, uh

that inflation will be coming down. Our belief is will probably end up seeing inflation come in around six point three percent at the end of this year on headline cp I and then dropped to about two point four percent by December of three, So the trajectory is still favorable in our opinion. The Fed will be pushing rates up to about four in Fed funds. Uh. So certainly that is a target that has already been or will

soon be built into share prices. The real question, I think will be what kind of erosion will occur in earnings estimates? Right now, for all of this year, growth is projected at six point nine, but it was eight point nine, and for next year up seven four, but it was eight point eight. So the real question I think is what kind of an effect will happen to forward earnings estimates? What is your call for forward earnings estimates?

How much further erosion could we see this year? Well, Traditionally, we have seen an erosion of about one third in terms of PE ratios during bear markets. Since World War Two. We've pretty much already seen much of that when you look to what's happening in the sector area, the market itself.

You know, we're still trading at a slight premium to the long term average for the SMP five hundred, about a four percent premium, you know, So we could end up seeing that UH seventeen point seven pe uh come down to the high fifteens, as we did back in June before. I think that the all clear might be sounded a last minute here, Sam, with the Fed potentially on the gas pressing the gas down on interest rate hikes, what's the possibility of recession? Can the Feds still pull

off a soft landing? Do you think? I think that's a pretty big estimate. If if we were to say that every time since World War Two that we have had a six point six, six point five increase in headline cp I, and remember we peeked out at nine point one, we have had both a bear market and a recession. So the real question is not whether we will end up with the recession, but how deep or shallow will it become um Our economists right now are still pointing to a soft landing, but I still think

that there is the possibility of at least a mild recession. Alright, Sam, as always great to get your thoughts. Looking forward to getting more perspective from you on Bloomberg surveillance as well. Sam Stovall, chief investment strategist at CFR a with us this morning looking ahead to the market open. We are seeing a bit of recovery after yesterday's slide. SMP futures are up twenty one points. It's a game of about a half percent right now. Deal futures are up six

NASDAC futures higher by seventy five points. The tenure Treasury is down six thirty seconds. The three point for three percent yield on the two year three point seven seven percent. NIMEX crude is moving a bit higher, up four tents percent, eighty seven dollars sixty five cents of barrel. The euro just around parody at against the dollar at one point zero zero. To you, you're listening to Bloomberg daybreak Bloomberg eleven three oh weather mostly sunny, less humid today, glow

eighties abundant sunshine tomorrow for seventies for highs. We'll keep it sunny upper seventies for Friday as well. Sixty four is the current temperature. 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 does San Francisco, Bloomberg nine sixty to the country, Sirius XM Cho one nine ten, and around the globe the Bloomberg Business at and Bloomberg Radio dot com. This is

Bloomberg Daybreak. It is six thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow. We are just about three hours away from the open to US trading. Time for the five things that you need to notice start your day. Brought to you by I b KR.

Investment Advisers switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at I b k R dot com slash r i a U First US futures higher in the wake of yesterday's sell off, which saw the s and P five hundred dropped more than four percent, and then ASDAC plunge over five Carol's schlife, 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 watch seven happened that was pent in a day and the years still closed up. Carol's Life at BIMO Family Office says next week's FED meeting will be crucial for market sentiment. Well, yesterday sell off spread virtually no corner of equity markets. Karen. It also cost America's richest billionaires dearly. We get more on that from Bloomberg's stug. Prisoner Jeff Bezo suffered the

biggest hit. Data from the Bloomberg Billionaire's Index show here is 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 Gay Brenn, and Steve Ballmer all declined by more than four billion dollars. In total, the fortunes of 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 fit Share J Powell in New York. I'm Dick Chrisener, Bloomberg Daybreak. All right, Dick, 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 percent in July. The bigger story in England right now, Karen centers on Queen Elizabeth the Second. Her coffin has arrived at Buckingham Palace that will soon be taken to Westminster Hall to lion state for four days until her funeral Monday. The Army is helping police and London authorities get ready for the event. London Mayor City Khan says, it is a massive job.

We will have almost three hundred world leaders and their team's law entorologies out thin else cities ever seen the sort of presents are going to see over the next few days. If you think about a marathon, carnival, previous rule wedings the Olympics. It's all in one. London mayor city concepts, rail companies of announced extra services. Thousands of mourners head into the city. I'm back here in the US,

Nathan A threatened strike make his supply chains hard. He could prevent railroads from transporting farm products and other key goods as soon as tomorrow. That's the five things you need to notice start your day. Brought to you by Interactive Brokers than Thank you, Karing six thirty three Now on Wall Street, sixty four degrees in Central Park. Still in with that accident on the westbound l I at

Maurice Avenue. Details in traffic. First Michael Bart 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. Cuomo questioned the accuracy and credibility of the investigations findings, allegend James, a fellow Democrat, used the probe to tarnish him and further her own political interests. Cuomo resigned in August of last year. The final primaries for twenty two ended with voters in Republican

races choosing between moderates and far right candidates. In the New Hampshire US House race, former Trump White House Aid Caroline Lovett beat out fellow Trump administration official Matt Mowers with thirty four point six percent of the vote. She will face Democrat Chris Pappis in November. In the race for governor of New Hampshire, Democratic nominee Tom Sherman, who ran uncontested, will challenge GOP incumbent Kristinnu, who won his primary with nearly seventy of the vote. And Rhode Island

Governor Dan McKee won the Democratic gubernatorial primary. He thanked his supporters the world is gonna change tonight for Rhode Island. It did for us, and now we're gonna take full avengement. Thank you so much. Governor McKee will face Republican Ashley

call Us in November. Ukrainian forces have shown a remarkable ability to take advantage of opportunities that present themselves on the battlefield, as according to depending On spokesman, Brigadier General pat Ryder, We've seen a number of Russian forces, especially in the northeast in the Karkeev region, cross over the border back into Russia as they've retreated from the Ukrainian counter offensive. General Rider says the abilities demonstrated by the

Ukrainians in the field came as no surprise. Senator Lindsey Graham says he's introducing a bill de ban abortions before four months gestination, with a few exceptions. I feel comfortable at fifteen weeks the science tells us that the nerve endings are developed to the point that the unborn child fills pay Senator Graham says the mid term elections will probably determine whether his bill comes up for a vote.

Former into pended Console Ken Starr, who led the investigation into Bill Clinton's affair with Monica Lewinsky, has died in Houston. He died after complications from surgery. Again star with seventy six Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan, all right, Michael, thank you. Just about six thirty six on Wall Street.

John stash Hour has the Bloomberg Sports Update. All right, Nathan Yankees and Red Sox first of a mini two game series in Boston. There are a lot of empty seats. The Stocks are, after all in the last place. But quite a game. Socks had three different leads, Yanks kept coming back to tie. Both teams hit three home runs, and the game is tied at four tenth and at one one line. There is a face at the right side of field in the alley will go all the way to the wall, kind of full of the scores.

Judge scores, and the throw home is late three run score floor Real scores. It is a facist clear three run double w f A and the Socks got two back bottom of the tamp. Gangs held on to win seven six the Yankee home run from Marwin Gonzalez and two solo seans for Aaron George sixth inning off Vic Pavetta. That side the game at three, eighth inning off Garrett Whitlock. That tide of the game at four. It left Fenway, It landed on LANs Down Street, so Judge took a

big step towards Roger Marris nineteen games left. He's now at fifty seven home runs. That's twenty more than anyone else in baseball. This was supposed to be the easy part of the Mets schedule, but against Washington, Pittsburgh, Miami, and now the Cubs, Mets just four and six of their last ten games at City Field. They had only four hits. They lost four to one. Is Adrian Sampson

outfits Jacob mc graham and Atlanta won. The Braves are only a half game behind two big NFL Week one injuries, both perhaps not as serious his fear Dallas QB Dak Prescott could be back in a month from his injured hand. In Pittsburgh, t J. Watt has a torn peck muscle,

but he might be returned in six weeks. Denver coach Nathaniel Hackett now admits he should not have tried a failed game winning sixty four yard few role at the end of their loss Monday night in Stata, John Stanard Bloomberg Sports Nathan all Right, John thanks sixty seven on Wall Street Time to take a look at stocks some of the names moving in the pre market. Bloomberg Radio and TV Markets correspondent Creaty Gupta is with us this

morning after the route. Can we call this recovery creaty a little bit of pick up on the futures contracts? What do you look at this point? Just a touch about four tenths of one percent when you're looking at SMP five features. I mean, look, yesterday was I believe the worst day since going all the way back into so um. There is a little bit of I want

to call it a spring effect. Almost essentially, when you have a spring and you push it down really really hard, it will have like a little bit of a technical bounce back. That being said, one of major stock movers this morning is the Starbucks story. S b u X is the taker. It's up about two point six percent, Nathan. And of course, you know Starbucks has had quite a bit of movement in the last I want to say a year or so, especially with their new CEO that's

now incoming. Howard Schulz, who had been the CEO and and founders Starbucks for ages had kind of taken that role as an interim position and then passed it on. I think what's significant here though, is the fact that is rising this morning because it raises three year outlook for profit and sales. UH that's coming at an annual presentation to investors. Of course, it's a big deal. We know that their China sales have really been suffering spinecifically

because of the COVID lockdowns. We know China is also one of their major growth markets, so that's really where you see of that Starbucks exposure. Analysts though, talking pretty positively about the upgrades. They are optimistic on that Starbucks company. Jeffreys also finding the new three year targets achievable and that is high praise coming from Jeffrey. So that is all good news on star on Starbucks. Remember, this is still going to be a question of global chains of

f X as well. The dollar story will impact Starbucks. Remember in their last earnings call they warned about the f X impact. So, Nathan, that is the stock I have my eye on this morning. All right. Well, it's interesting because we've been watching coffee prices of themselves as well, and they've been hit pretty hard, a big rally in UH in some coffee prices on the commodities market. So you're also taking a look at Oracle. They just reported

some pretty solid earnings this week, didn't they They did? Um, if I was to make a quick note on Starbucks, really quick, because because we brought up you browed commodities is really your fault. He browsed the commodities inflation type about wage inflation as well as Starbucks dealing with a lot of union issues, something to keep its eye on. You talked about Oracle though, and that's a very important

stock to get to remember. Oracles seen as the old guard of sorts O R c L when it comes to tech investing down about six tenths of one percent. It was initiated as a hold over a Barrenberg as the broker saw some bowsed opportunities and risks for the software fir. Remember Oracle is trying to get their foot into cloud services at the moment and trying to get more people to adapt kind of their hybrid system. So right now it looks like just initiative as a whole

of Barenburg. Nothing super exciting, but they're not expecting a major rerating in the medium term. All right, Boomberg Radio on TV Markets correspondent Pretty Gupta always juiced on the caffeine. Thanks for being here in the pre market and as we take a look at stocks as a whole, Yeah, I will call it a bit of recovery. SMP futures

up seventeen points right now. Now future is up a hundred one Nastack futures up fifty eight points ten, Your treasuries down seven thirty seconds, yield three point three percent and the yield on the two year three point seven eight per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather, sunshine, less humid today, low eighties for afternoon highs. We'll get into the upper seventies maybe eighty tomorrow and Friday with sunshine all around. Right now, sixty

to Grace in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. This is a Bloomberg business blash and I'm fair in Moscow and futures are gaining. This morning we got to the first word breaking news dance for today's morning call in here. Tatiana,

Daria Tardiana, good morning, Good morning, Karen. Like you said, it's green on the screen this morning after that big sell off with the doll features up eighty six points, s and piece up sixteen and nas jack up fifty two. Treasuries however, remain under pressure, extending glasses for a third session. The tenure yield up three basis points through three spot

forty three percent. Looking process at the dollar is weaker, while the Japanese yen is stronger After officials they're suggested that they will respond to recent moves back in the US. On the economic front, NBA mortgage applications at seven and

the Producer Price Index at eight thirty. In early trading this morning, Starbucks up three percent after raising its three or outlook, and Nicollege shares hired by five after an upgrade from bt I G. In other news, Google lost its bid to toppily record four billion dollar antitrust finding Europe and IBM will take a five point nine a billion one time pretext charged this quarter due to a pension agreement and wrapping things up here here Oracle was

initiated at hold at Boomberg, Well Novartists and Bristol Myers were cut to hold live from the first and Breaking news desk. I'm Tatianataria, Karen, alright, Tatiana, thank you, ed here lie breaking news of your Bloomberg type squawk on your terminal, s U U A W K and that's a Bloomberg business flash. Now here's Michael Barr with Moore and 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 a mid 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 whine now said Caroline Lovett beat out fellow Trump administration official Matt mauer Is with thirty four point six percent of the vote. She will

face Democrat Chris Pappas. In November. Rhode Island Democratic Governor Dan McKee faces off against Republican Ashley Kellis in the full In baseball, the Yankees beat the Red Sox seven six and ten innings, New York's Erin Jodge at two homers to reach fifty seven the 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 journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Karonry, Michael, thank you at at sixty nine on Wall Street, and we turned to news and science and technology now at the Bloomberg and j I t Stem Report, and here's just making news in science, technology, engineering, and math. Hong Kong will

quit moving travelers with COVID to isolation hotels or quarantine camps. Instead, they will be allowed to remain in designated quarantine hotels and marks, another easing in the city's travel policy. The move comes as Hong Kong prepares for several high profile events, including a summit for global bankers at an international rugby tournament.

European Commissioned President Ursula vunder Lyon will call for a radic goal steps today to send the energy crisis that will edge closer to ratcheting measures and higher taxes on energy companies. The key question is whether Vonda Leon's proposal for a five percent reduction and gas consumption survives various negotiations and with weather disasters costing two hundred million dollars

a day and irreversible climate catastrophe looming. A new report by the United Nations says the world is quote heading in the wrong direction. The World Meteorology Meteorological Organization, in the latest stark warning about global warming, says weather related disasters have increased fivefold over the last fifty years and are killing a hundred fifteen per day on average, and the fallout is poised to worsen. That's a Bloomberg and j I p Stem report. Nathan, all right, Karen, thank you.

We are live from the Bloomberg Interactive Brokers studios where it's just about six fifty one on Wall Street time

now to check what's going on in BC. Some of the top stories in our nation's capital include President Biden sank he's not worried about inflation after hotter than expected consumer prices for on, the White House considering an emergency decree in case of a railroad strike, the Justice Department saying former President Trump is undercutting himself and his Mara Lago secrets argument, and the Senate to wrestle with a bill that would boost US ties with Taiwan, springing Bloomberg

government reporter Emily Wilkins joining us from the Nation's Capital. Emily. So the data didn't go President Biden's way, but when it comes to this economy, it sounds like he's at least trying to stay on message. Yeah, Nathan, the White House central the celebration for the Inflation Reduction Act. Remember that was that healthcare, tax and climate bill that passed

UH back way back in August. But now the lawmakers are back in town, the White House has got a hold a celebration really say hey, look we did it. But of course, on the same day that they're passing a bill with the name the Inflation Reduction Act UH, inflation for the previous month was reported to be higher than it was expected. Consumer price is increased by point one percent, for inflation increased by point six percent um. I mean. Biden did note that these aren't exactly giant numbers.

He said he wasn't worried it was only a tenth of a percent. But if that inflation continues to be the issue that is really defining these mid terms. There are a couple other ones, but if you talk with folks, the economy just continually comes up as a big thing that they're concerned about. And this is really showing that for Democrats, it's not like inflation is suddenly going to go down ahead of November. They're probably going to have

to deal with high inflation as they go into the election. Uh. And even though they tried to name this bill inflation reduction, this isn't something that Americans are seen. And even if this bill does reduce this inflation, it's not going to happen quickly within the next few weeks. And now we're seeing this threat of a nationwide railroad strike, causing the potential if it happens to add to price pressures even further.

What's the White House doing about that? So the White House is beginning to prepare for a potential use of emergency powers to ensure that critical materials that these railways usually transport can still be delivered even if there's a strike. They think things like chlorine that are neither for wastewater treatment plants. It's something that if they don't get it, they're not going to be able to put out water that we can all drink. So there's a lot of

really critical materials here. Also, this goes back to the inflation thing. If certain materials can't get out, can't get delivered. That's going to lower the supply and jack up prices. It's really something the White House needs to avoid. They have until Friday to come up with an agreement for these unions, unless Congress wants to bump that deadline back. Um, but at this point, it's both the White House as well as UH Congress is trying to prepare for a

potential strike for what that would mean. UM, it's fairly really a big story right now. UH, as far as what the implications could be if we hit Friday and these two major unions still haven't reached a deal, and all this is coming, of course, just less than two months before a mid term election. What's the level of concern at the White House about whether Democrats are going to be able to try to stem any losses against Republicans and the control or the fight for control of Congress.

I mean, certainly, if this robot strike happens, if these materials aren't able to get out there, this is going to impact Biden and this is going to impact Democrats. I mean Biden came into the White House say that he was a dealmaker. He is now meaning personally involved in these negotiations. A lot really rests on him the kind of show that that he can avert this potential

pricess um. You know, the mid terms, Democrats have gotten a little bit of momentum that that that they didn't have before, but that could easily be lost if something like this occurred. Um, and we see some wide ranging impacts on the economy up just because again they could. Things are getting delivered when they need to be. All right, let's turn to some of our other stories and watched

in DC. We got this new court filing in the Moral Lago investigation, the Justice Department looking into that classified material sees from former President Trump's home. What's the latest. Yeah, so a lot of back and forth here, but basically, what the Justice Department is trying to do is they're trying to evince a federal judge to exclude about a hundred classified documents from her order halting the Justice Department from using the thousands of records, uh, while a special

Master reviews them. Remember that special master is that third party. They're going to review the document with the intention of making sure that that all of them do fit what the Department of Justice is allowed to have um that and that none of them are personal records as Trump has claimed. The Department of Justice also kind of tried to point out what they see as a bit of a flaw in former President Trump's argument about these documents.

They're saying that if he did declassify them um as his personal break hers, then he can't assert executive privilege over those records um and the kind of saying that, you know, this, this dual argument that that Trump is making really doesn't hold water. Again, this is something that works seen a lot of back and forth in the courts over We saw it over the special Master. Now we're seeing what over this special Master is allowed to review.

Of course, the Justice Department has said that there are a lot of security concerns on the line, including national security if they cannot review these documents assess what kind of information was in mar A Lago and who might have had access to that information. Just thirty seconds left here, Emily, But tell us more about this Senate bill coming up

on Taiwan today. Yeah, So this bill is going to be having a mark up today in the Foreign Affairs Panel, and among other things, would give Taipe a four point five billion for defense over four years as well as recognized it's democratically elected government as a legitimate representative of the people of Taiwan. Uh. This is just continuing what we've already seen lawmakers at being very support of of Taiwan for both parties, even at the risk of of

ingreen China and the government in Beijing. Thanks Emily good having gone with us. Bloomberg Government reporter Emily Wilkins read war at Bloomberg dot com or on the Bloomberg terminal, and follow all the latest on Bloomberg Radio in Washington, Bloomberg and one oh five point seven FM HD two. Right now, SMP futures are hired by seventeen points down, futures up a hundred six, Nasdaq futures up sixty one points.

The tenure Treasury is down seven thirty seconds. The yield three point three percent, yield on the two year three point seven seven percent. Bloomberg Surveillance is straight ahead with Tom Keene, Jonathan Farroll, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg