Bloomberg Daybreak: September 15, 2022 - Hour 1 (Radio)

Cuomo of sexual harassment is suing him. Plushoom Braine assesses damage liberated cities from Russia's occupation on my foolar more ahead boards Another winds of the Yankees in Boston. Another loss for the Mets that comes finished the city fields. Weel that's all straight ahead on Bloomberg day Break on Bloomberg Eliven Trio, New York, Bloomberg one, Washington, d C Bloomberg one oh six one, Boston, Bloomberg nine six seven, Francisco, Sirius x M one ninet and around the world on

Bloomberg Radio. To come and via the Bloomberg Business app. Good morning, I'm Nathan Hagar and I'm Karen Moscow. US stock index futures. They're little change this morning. We are coming up to five oh one on Wall Street. We checked the markets to every fifteen minutes throughout the trading day. On Bloomberg. Right now, SNP futures again are little changed and so are down in Nasdack future is pretty much the decks in Germany is up a quarter of a percent.

Ten year Treasury down ten thirty seconds, yield three point four four percent, and the yield on the two year three point eight one percent. Nathan, Karen, We're seeing equities continue to stabilize following Tuesday's sell off. Yesterday's late day rally saw the SNP five close up a third of a percent. As for bonds, the US two to thirty year curve has reached the most inverted level this century. Megan Horneman is chief investment officer Adverdence Capital. You're gonna

see a lot of this choppings. It's just going to be an ugly market over the next week. The markets just waiting for that FED report, and then even between now and then, we have quite a bit of economic data to digest, So I think you're just going to see a very sideways choppy market until we get a little bit more clarity on exactly what the Fed's going to do Burden's capitals. Megan Hornaman says we're all waiting for Wednesday's FED decision. Market surprising in a seventy five

basis point rate hike. Well, Nathan. A gloomy prediction for equities this morning from Ray Dalio, the billionaire founder of Bridgewater Associate, says stocks could fall about twenty percent as if the Fed's target rate reaches four and a half percent. The comments and a LinkedIn article followed this week's hotter than expected inflation data. Well, busy week on the economic front continues this morning, Karen. With the release of US retail sales for August, we get a preview from Bloomberg's

Michael McKee. As it did with the CPI report, gasoline will have a major impact on the August retail report. Retail sales are reported in dollars, and the drop in gas prices will mean a big drop in service station sales. The question is whether consumers redirected any of their savings to spending on other things. It is back to school season,

retailers expect a jump in sales. Beyond that, the issue is whether Americans continued their switch to spending on services, which, with the exception of bars and restaurants, aren't included in this number. The retail figures aren't adjusted for inflation, so sales will look stronger than they actually were. Michael McKay, Bloomberg Daybreak, Right, MC, thank you. Another major story where following this morning could have big implications for the economy

and the market's a possible freight rail strike. Rail and union negotiators are still at the table, but it is not clear yet if there's been any progress in averting a strike set to begin as early as tomorrow. They get the latest from Bloomberg's Amy Morris from our newsroom in Washington. Talks led by Labor Secretary Marty Waltz, continued

through the night. Still, officials are making contingency plans in case one five thousand freight rail workers walk off the job, which some estimates say could cost the US more than two billion dollars a day. This setdown would be the largest of its kinds and would impact travel and the supply chain. Now, industry groups want Congress to step in to help avoid In their words, a catastrophic shutdown of

the freight rail system in Washington. I'm anymore as Bloomberg Daybreak thanks Amy, the strike could have a wide ranging impact. Treasury Secretary Janet Yellen is warning about the potential economic damage from a labor stoppage. It would be a significant impediment to shipping goods and to create supply chain challenges.

It's certainly something we don't want to see happen. In an interview with CBS, Secretary Yellen also says she thinks inflation will improve substantially over the next year due to current actions by the Fed. And we turn overseas now, Nathan to geopolitics, where Chinese President Sheijin Ping and Russian President Vladimir Putin our center stage. The leaders are taking a new step today and there are no limits friendship. Bloomberg Daybreak Asia anchor Bryan Curtis has more from Hong Kong.

Putin probably shouldn't expect to much at his first meeting, was she Since the Winter Olympics, China was caught off guard when Russia invaded Ukraine a few weeks later. Beijing struggled to offer support while avoiding endorsing a clear violation of sovereignty, but China came to grips with it, especially after Nancy Pelosi visited Taiwan. Now, China says it fully

understands all measures by Russia to protect his interests. Beijing has stopped short of military support for Russia, but the Alliance will continue to serve as a check on the West in Hong Kong. Brian Curtis Bloomberg Daybreak. All right, Brian, thank you in the UK Tota eight man all week. Really, it's all about the Queen. Queen Elizabeth's coffin is now in Westminster as she lies in state for four days. Let's get the latest live with Bloomberg's You and Potts.

Good morning, Good morning, Nathan and Karen. The British are famous for waiting in line, and that is exactly what thousands are doing right now as they wait patiently to pay their respects to the late Queen Elizabeth, the country's longest ever serving monarch. Imagine these coffein is now lying in state at the Hearts of the Palace of Westminster, where it will remain until Monday morning ahead of the funeral.

Morna is a big omitted twenty four hours a day, but with hundreds of thousands of people expected, the line currently stretching three miles could grow very much longer. In London, I'm you and part spoon by daybreak, all right, new and thank you. Well, we have some corporate news out of Europe this morning. The CEO of shell will step down at the end of the year. Ben Van Burden has been at the energy giant for almost forty years and it's been CEO for the past eight will now

be replaced by Shells Head of Gas and Renewables. Well el so on well. The annual list of top business schools in the country is out from Bloomberg Business Week Karen, and this year Stanford is again number one. Its results remained consistent with past years, as it scored highest in compensation, networking in entrepreneurship. The University of Chicago's Booth School and

Harvard Business School tied for second place. And speaking of Chicago, Nathan, when it comes to housing, that city, along with New York, and the most vulnerable to price to clients in a potential economic downturn. That's according to a report by real estate data analytics firm ADAM. Of the fifty counties most at risk, nine are in and around New York and six are in the Chicago metropolitan area. Straight I had your latest local headlines, plus a check of sports, and

this is Bloomberg and itsself. Five oh seven on Wall Street or sixteenth degrees in Central Park. Got a tractor trailer fire clean up underway in the North Bend New Jersey Turnpike, passed eggs and eight details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good

morning Nathan. One time, a to former New York Governor Andrew Cuomo sued him, saying he sexually harassed her and then smeared her reputation after she became the second moment to publicly accuse him of misconduct. Charlotte Bennett's lawsuit, filed in a federal court in New York City, repeats many of the allegations she has talked about publicly. She said the governor subjected her to unwanted advances, including telling her that he was lonely and on the hunt for a girlfriend.

The New York City Commissioner of Immigration Affairs says that many of the vigrants who are being bussted from Texas did not want to go to New York. Commissioner Manuel Castro says the city is helping them get to other states. Castro told Fox five many want to go to places like Florida, where the largest community of Venezuelans live. A charter flight with about fifty Venezuelan migrants, including children, landed

on Martha's Vineyard. Yesterday's charter flight was arranged by Florida Governor around the Santas's office, saying they sent the immigrants from Texas to sanctuary states as part of their relocation program. Officials on the islands say they had no prior notice, but as soon as they learned what was happening, they rallied.

Berbera Rush is with St. Andrew's Parish. We've received calls from restaurants offering food, stores offering food, people offering space, you know, private people showing up saying what can I do to help? But it's been amazing. Barbara Rush with St. Andrew's Parish. Some state officials in Massachusetts have blasted the scantists,

calling it a political stunt. A Brooklyn mother has been officially charged with drownding of three children who were later found on the beach in Coney Island, and when Murdy faces several charges, including three counts of murder, President Voladimir Zelenski went outside the capital of Kiev to assess the damage in cities once again in Ukrainian control. He says, Isium was left largely devastated, with apartment buildings blackened by fire and pock marked by artillery strikes. The main thing

that not me here, our soldiers here. That is very important thing that its supports supports people. I see how people UH meet them. That is you know, uh, we are a sensitive moment, President Zelenski. Global name is twenty four hours a day on air and on Bloomberg quick take power by more than twenties, have a hundred journalists, analysts, more than a hundred, twenty countries. Michael bar this is Bloomberg Nather. All right, Michael, thank you, very important. Red

headline just crossing the Bloomberg terminal. The Labor Department says, US rail companies and union negotiators have come to a tentative agreement to avert a nationwide freight rail strike. We will have much more details coming up for you in minutes. Here on Bloomberg Daybreak five ten on Wall Street. Now time for the Bloomberg Sports Update with John Stashower. Thanks Nathans so much for the Mats being able to take

advantage of playing inferior opponents. Last eleven games have been against Washington, Pittsburgh, Miami, and the Cubs for the worst in the league in those games, and that's just four and seven swept at home by the lowly Cubs. Last night's Chicago had six to nothing in the first inning, David Peterson Phase six batters got only one out. Cubs went on to win sixth three. That's still in first place only because Atlanta has suddenly lost four out of five ments lead by a half game that host the

Pirates Tonight. Yankees with a sweep of the many two game series in Boston. No Aaron Judge home runs, but the big night for Glaver tore As he had the winning hit Tuesday. Three more hits last night, the one in the fifth inning snapped a scoreless tie, and when Boston capture Connor Wong through the ball wildly, three runs scored in putting Torres circling in the bases. The Yanks one five to three. Donovan Mitchell introduced in Cleveland, traded

by Utah. The New York native was asked about a trade to the next I thought for sure I was going back home, not gonna lie about that. But you know, when I found out where I was headed, who I was playing with, the group, the team, the coaching staff, I couldn't be more happier to be here, to be a part of this organization, to be a part of this group, to join these phenomenal guys man and adds who you know. And I think that for me is

what I'm truly excited. The meanwhile, controversy in the NBA, Lebron James critical of Commissioner Adam Silver's decision to to spend Phoenix Suns owner Robert Sarver for only one year. Starver was found up conducted racist and misogynistic behavior. John Stashward, Bloomberg Sports Nathan all Right, John, thanks again. The breaking news tentative deal reached between freight rail companies and the

union to potentially avert a nationwide rail strike. Will at the details next with Bloomberg Government's Jack Fitzpatrick in Washington. This is Bloomberg Bloomberg eleven three oh Weather mostly sunny today with higher seventy five degrees sunshine up or seventies tomorrow. We'll get into the low eighties Saturday and bring in some clouds Sunday with a high near eighty five. Right now sixty eight in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com,

the Bloomberg Business Outland at Bloomberg Quick Tape. He's a Bloomberg Business Flash And I'm Karen Moscow, and we're watching futures this morning as they drift. This is investors await the latest batch of economic data met expectations of large interest rate hikes by the Federal Reserve. Treasury yields are rising the Dollar study, and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now,

S and P futures again are little change. DAL futures are higher of forty, while Nastack futures are little chain. The decks in Germany's up three tenths of upper set. Can your treasury down ten thirty seconds you have three point four or four percent and they yield on the

two year three point eight two percent. Ninemex screwed oil down two tenths per cent, or fifteen cents at eighty eight dollars, thirty five cents of barrel comics goal down three quarters of a percent on twelve dollars eighty cents at sixteen ninety six thirty announced. The euro is at point seven against the dollar, British found one point one five oh four, the yen one forty three point four too, and Bitcoin is of nine tenths of upper cent at

twenty thousand, one d twenty five dollars. That's a Bloomberg business flash. Now here's Michael Barr with more I'm going on around the world. Uncle, good morning, Good morning Karen. This just in. It looks like a freight rail strike will be averted. The Labor Department says US reel companies and union negotiators have reached a tentative agreement. The statement says they have an agreement that balances the needs of workers, businesses,

and the economy. Strike had been looming as soon as tomorrow, which could have cost the U. S economy as much as two billy and dollars a day. Mourners continue to file past the casket of Queen Elizabeth at Westminster Hall in London. Some people have waited in long lines were

up to thirty hours. Baseball, the Yankees beat the Red Sox five three, the Mets lost, The Orioles beat the Nationals six two, the A's and Giants one Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analyists more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Michael, thank you. It's five nineteen on Wall Street Live from

the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak, and let's get more now on the news that just broke minutes ago, the White House and the Labor Department announcing at tentative agreement reached between freight rail companies and their unions that could potentially avert a nationwide rail strike that could have taken effect as soon as midnight tonight. Let's

bring in Bloomberg. Government Congressional reporter Jack Fitzpatrick has been following these negotiations from the nation's capital and joins us now from our Bloomberg ninety on one studios in Washington, d C. Jack, Good morning, Uh, this couldn't have come at a better time for the Viden administration and I guess for the U. S. Economy as a whole. Yeah,

not a moment too soon. Essentially, the statement from Labor Secretary Marty Walsh that just came out a few minutes ago said this happened after more than twenty consecutive hours of negotiations. Uh. They just announced this a little after

five am this morning. Uh. The the deadline was tonight and it appears that you know, they're they're calling this attentative agreement, but it appears that there will not have to be a strike and that there's enough of an agreement in place so that we have a statement from the White House. Uh it says the rail workers are going to get better pay, improved working conditions, and in the presence were uh, peace of mind around their healthcare costs.

A big part of this was about paid medical leave and work time flexibility and the demands that have been put on rail workers uh during the pandemic about having to come into work on very short notice. Uh. So it would appear there's going to be something in there for them that goes beyond the initial recommendations from the President's Emergency Board. But it's it's very big news and it you know, they could not have waited much longer

before a strike would have happened. And I have to imagine it's pretty important news as well for President Biden himself, who we've heard many times from the President that he wants to be the most pro union president in history, and now it looks like, uh, he's potentially gotten a big win for a major labor union in this country. Yeah, and especially this close to the midterm elections. One, this was an issue that threatened to, uh, potentially undermine President

Biden's standing with unions if this all fell apart. The fact that they did not immediately wholeheartedly sign on to the emergency boards recommendations was was not a good thing. But also, even more broadly, the the possibility of economic damage from this so close to the mid terms was another big threat for the president and for Democrats on

the campaign trail. Uh. The real officials had estimated this would cause about two billion dollars per day of economic damage that would probably be significantly worse than even if there were a government shut down. Uh. It just for the context of the deadlines that that that we're coming up. Uh. So it's it's a big crisis averted. It seems as long as they're not putting the cart before the horse,

and this tentative agreement becomes a wholehearted agreement. Yeah. It's a significant news as well, coming on the heels of the inflation print we just got this week that shows that higher prices continue to be an issue in this economy and potentially politically for the president as well. Yeah, you know it. It's a bit of a case study on the inflation uh impact on on wages and what

the wage demands are. UH. Significant pay increases offered in this deal, even before the tentative deal that they're discussing now. It also it gets to what workers are demanding in terms of time time off, paid, time off, flexibility, that kind of thing, UH, and how much pushback there are there is from uh from critical workers like rail workers, UH against the constraints that were put on them during

the pandemic. So these are very unique economic times right now, and this is a bit of a case study in how these negotiations go forward and show what workers demand and what workers can realistically get UH in a time with continued significant inflation and questions about what the workplace looks like for a lot of people during the pandemic. Only about thirty seconds left here, Jack, But again, we've just gotten this tentative agreement announced just minutes ago. What

are you looking for next? Uh? Does it go through? Because there's not a clear path for Congress to step in? This came up yesterday. There there's not clear willingness for Congress to pass something to force both sides to accept a certain offer. Uh, you know, can the White House get this absolutely across the finish line? Uh? Does it not only get the thumbs up from labor leaders, but do the labor votes from the workers get this across

the board? Does a tentative agreement turn into an agreement? Agreement? Thanks? Jack, great having one with us, as always been our government Congressional reporter Jack Fitzpatrick with us from our Bloomberg studios in Washington, d C. On the breaking news a tentative agreement announced by the White House and the Labor Department to potentially avert a nationwide freight rail strike that could have snarled of the U S supply chain if that

strike had gone into effect around midnight tonight, but again tentative agreement announced between the unions and the freight rail companies. This is Bloomberg Bloomberg eleven three oh weather, mostly sunny, mid seventies today, sunny, upper seventies Tomorrow, low eighties Saturday and Sunday with a mix of sun and clouds. Right now sixty eight in Central Park, broadcasting live from the

Bloomberg Interactive Broker Studio in New York. Bloomberg E Living free to Washington, d C. Bloomberg on to Boston, Bloomberg one oh six, one to San Francisco, Bloomberg nun sixty to the country, Sirius XM Chando one nine ten, and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and 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 hour. We have breaking news this morning. As we've been telling you, it looks like Afraid rail strike will not happen tomorrow. The Labor Department says US rail companies and union negotiators have reached a tentative deal to avert of strike. Bloomberg Government reporter Jack That's Patrick joins us with the latest. The real officials had estimated this would cause about two billion

dollars per day of economic damage. That would probably be significantly worse than even if there were a government shut down. It's a big crisis averted, it seems as long as they're not putting the cart before the horse, and this tentative agreement becomes a wholehearted agreement. Bloomberg's Jack Fitzpatrick says, the Labor Department believes the agreement balances the needs of workers, businesses,

and the economy. And we'll keep you up to date on those details throughout the morning here on Bloomberg Radio. But first let's get you caught up on markets. Equities are stabilizing in the wake up Tuesdays sell off right now, SMP futures are little changed. Still, Concerns over inflation and

the Fed remain front and center. Robert Teeters, head of investment policy with Silver Crest, asked that management overall, it really took us back just about a week in terms of where the SMP had been, and so that says that there was a lot of optimism built into that report. Didn't come through quite as planned, But I think the CPI print wasn't quite as bad as numbers in isolation would have made it out to be really more reversal

of the prior week. So again this concept of patients and sort of looking through the numbers a little bit, things are going to take some time to settle down. Robert Teoter with Silver Crest says markets could rebound if we get a few positive inflation readings in the coming months. Meantime, Nathan, we're getting a gloomy prediction for equities this morning from a billionaire. Raid Dalio, the founder of Bridgewater Associate, says stocks could fallow about twenty if interest rates increased to

about four and a half percent. Kealio made the prediction in a linked in article. In A busy week on the economic front continues today, Karen, with the release of monthly retail sales. We get those numbers this morning at eight thirty Wall Street time, along with data on Empire manufacturing and weekly jobless claims and turning overseas now, Nathan, GEO politics is also front and Center. This morning, Chinese President Hijin Ping and Russian President Vladimir Huton meet today

for the first time since Russia's invasion of Ukraine. Surely before the war that you bound to have no forbidden areas of cooperation, but Beijing has stopped short of sending military supplies or financial support. And futures this morning are on the rise. S ANDP futures up about six points down, futures up fifty nine, and nazdeg futures are a little change. So we're starting to see some strength there in the

futures market. Ten year treasury down nine thirty seconds. He Hall three point four or three percent straight ahead, relatest local headlines plus a check of sports, and this is Bloomberg. Thanks on Wall Street, sixty seven degrees in Central Park, problems piling up on the North Founder Jersey Turnpike, truck planes. Michael Barr has more on what's going on in New York and around the world. Michael Nathan, thank you very much.

At one time, Aye to former New York Governor Andrew Cuomo sued him saying he's sexually harassed her and then smeared her reputation after she became the second woman to publicly accused him of misconduct. CHARLTT Bennett's lawsuit, filed in the Federal Court in New York City, repeats many of the allegations she has talked about publicly. She said the

governor subjected her to unwanted advances. Ukrainians president made a rare foray outside the capitol to assess the damage in cities once again in Ukrainian control for vladimir'sz Lensky says, after almost six months under Russian occupation, Isium was left largely devastated. The view is where he's shocking, but it's not shocked for me because we began to see the same pictures from Bucha from the first occupied it Teractors

destroyed buildings, killed people. President Zelenski says, so far, prosecutors have found six bodies with traces of torture in recently retaken Kharki regions in the villages. Chinese President Shi Jingping, Russia's Vladimir Putin, and leaders from India and Central Asian nations are headed to Uzbekistan for a summit of a security group seen by Beijing and Moscow as a counterwey

to US influence. Prosecutors in Chicago say singer R. Kelly could receive an additional ten to ninety years behind bars after a jury convicted him of producing child pornography and enticing girls for sex outside the court room. Kelly's attorney, Jennifer boon Jean, said prosecutors overreached after the documentary Surviving R. Kelly sparked the public outcry. The government wanted to um, as I said during my closing arguments, be um greedy um.

And they charged counts they couldn't win and that they shouldn't have. Kelly's attorney, Jennifer bong Jeen. The verdict comes months after a federal judge in New York sentence Kelly to thirty years in prison for racketeering and sex trafficking. 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, thank Michael on Wall Street time for the Bloomberg Sports Update, which on Stash. All right, neither of the Mets don't win the n L East. They might look back at this recent stretch. Unable to take advantage of playing teams they should be able to beat. Swept at home by the Cubs, who outscored the Mets in the three game series fifteen to five.

It was six to three last night it was six nothing in the first guning is David Peterson got lit up. Metsos the Pirates. Tonight they lead Atlanta by a half game, as the Braves have lost four out of five. Yankees and Red Sox scoreless. Fifth inning in Boston, Yanks had two on Labor Torres at the plate. Labor lines another basi to right field, rounding third is six. Here comes a throw home. It is not in time, and they have all the balls from the right field scoring is Judge.

All the way to third is Clabor. He round start not coming home. The thrower is not in god. Torres circled the basis. Two more Boston errors led to a Yankee run of the ninth Yanks beat the Socks five to three. In Esther cortege sharp and five inning's got his tenth win. Clark Schmidt followed him. He threw two perfect frames of relief. Yanks off Tonight they played tomorrow in Milwaukee. The two teams behind the Yankees met Toronto Bee Tampa Bay. Career home run number one hundred for

Vladimir Guerrero at age twenty three. I went for the Cardinals and a record, said Adam Wayne right on the Mountain. Yadier Molina was his catcher for the three d time. That's the most ever. Chargers in Chiefs kickoff Week two tonight in Kansas City. The Giants Sunday host Carolina will see if white out Kadarius Tony gets more plain time. Last year's top draft pick, only on the field last week for seven snaps. Asked about it, Tony said, I get paid to play, not coach. Jet Sunday visn't Cleveland.

Joe Flacco will again be the quarterback, though Zack Wilson is now backpracticing. John Stashward Bloomberg Sports Nathan Thank you John thirty seven on Wall Street time for the Tri State Business Report. Here's Bloomberg's at Corty. The US has recovered all of the jobs that lost during the pandemic, but New York City is still missing one hundred seventies six thousand. The Times reports job growth slowed this summer

and sectors like hotels and restaurants. Compared with a year ago, Businesses in technology, healthcare, and finance increased employment at a faster pace. A union election at an Amazon facility and up state New York has been scheduled for October, setting up another company showdown with workers trying to build on

a landmark union victory this year. The vote at the facility near Albany is set to be held in person between October twelfth and October sevente Hilton has tapped a major development project in Times Square to build a boutique hotel brand, while Three Journal says the hotel will be the first under the new tempo by Hilton flag. It's part of the t SX Broadway at two an a half billion dollar tower. At your Bloomberg Trying to day 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 Potas Content and Wins in New York. We're talking about Barney's New York being brought back to life in the form of a beauty and wellness brand. Um Corney Danahoe on who Who in Fort Wayne now Coha says that's getting squeets by

lower lunum prices. I'm Gina Serretti and for w W VDUM in Chicago, I'm talking about a new report showing that homes in and around Chicago, then New York City, are most vulnerable to price drops in a potential economic downturn. Alisa Mateo and kyw in Philadelphia, I'll be reporting on why Amazon shoppers we'll be getting more spam emails. I'm Caroline head Kilm Blue may Dab Distols, and we've been reporting on the government considering lifting the cape on bankers bonuses.

I'm Ed Corey on w W Jane Detroit. I'm reporting Lear both of my general motors with bart for its Olvium battery platform. And those are some of the stories our tyred Bloomberg journalists and analysts 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. A modern currency must meet the needs of a modern economy, Yet in an important way, the US dollar is in danger of falling behind. In recent decades, countries from the UK to China have introduced payment systems enabling people to transact instantly

directly from their bank accounts at extremely low cost. The transition to real time payments has already boosted global economic output by tens of billions of dollars a year, but in the US, fewer than one percent of all transactions settle in real time. To its credit, the Federal Reserve is trying to address at least part of the problem, but more needs to be done. The next iteration of money has the potential to benefit billions. The U s

should not let itself get left behind. Mind. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or opie I am go on the Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials every week at this time. Terminal customers can read more at O. P I N go Bloomberg eleven three oh weather sunny, mid

seventies today, upper seventies in the sunshine tomorrow. We'll keep it sunny, low eighties by Saturday, bringing some clouds von Sunday with a high near eighty five. Right now sixty seven 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 flash and I'm teraren Moscow and futures are starting

to show some strength this morning. This is investors await the latest batch of economic data mat expectations of large interest rate hikes by the Federal Reserve. Check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, S and P futures are up eight points now, futures of seventy one and NASDAGG futures are up thirteen. The decks in Germany is up for tenths of a percent.

The ten year treasury is down eight thirty seconds, you know, three point four or three percent, and they yield on the two year three point eight one percent. Dimex screwed oil is down sixtensive a percent on fifty one cents at eighty seven dollars, five cents of Barrel Comic School down seven tenths percent or eleven dollars thirtyes cents at

sixteen ninety seven eighty announced. The euro point against the dollar British found one point one five one four and the en at one three point three three and Bitcoin this morning is up one percent at twenty thousand, one 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 Karen, thank you very much. President Joe Biden says a tenetive railway labor agreement has been read, diverting a

potentially devastating strike before the pivotal midterm elections. Biden said in a statement this morning that the Tenetive deal will keep our critical rail system working and avoid disruption of our economy. Biden says the rail workers will get better pay, improved working conditions, and peace of mind around their healthcare costs.

In London, the public continues to pay their respects to the late Queen Elizabeth as she lies in state in Westminster home authorities estimate the line to enter the building stretches two point six miles. In baseball, the Yankees be the Red Sox five three, The Mets lost, The Orioles beat the National six two. The A's and Giants won. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and

analysts more than a hundred twenty countries. Him Michael Barr, and this is Bloomberg, Nathan, Michael, thank you. It's five forty nine on Wall Street Life from the Bloomberg Interactive

Broker Studios. This is Bloomberg Daybreak. And it may be crisis averted for a major piece of the US supply chain with that tentative agreement just announced this morning between freight rail operators and their union's Bloomberg Radio and TV Markets correspondent Pretty Gupta is with us live this morning from the Greenville Yard in Jersey City, New Jersey, a major point in that supply chain between the ports and

the rails. Pretty good morning. You see any signs of renewed activity now that we've heard this news this morning, Well, good morning, Nathan. You know what's interesting here is that in preparation of a potential strike. So much with halted, you had something like I believe auto shipments or were already paused. I mean, as we were coming in towards Greenville Yard, we saw trailers and shrucks full of just

new vehicles just standing on the sidelines. Think about it, if you have a new car manufactured in Detroit or manufactured in Mexico that has done shipped or I should say transported, be afraid, because that is the most efficient way across the country to the dealerships will be people can actually buy it. Another example, if hazard as materials, for example, we're halted, think of ethanol seventy percent of which in this country is shipped by freight, So ethanol

things that are extremely flammable if left by themselves. Um on, say an idle car, which was the threat if indeed the strike goes through, those kind of things were put on pause. And on top of that, Amtrack even canceling their long distance flights. So right network train trips, I should say, Nathant. Right now, there isn't going to be

an immediate effect. Right now you are still seeing, uh, the normal things you would see in a rail art Essentially rail cars being filled, being transported, but not necessarily moving. And that's what we're waiting to hear. And once again I should really emphasize this feel is still tentative. It is not officially yet. Well, what are you hearing about the deal at this point? What were the sticking points between the union workers and the freight rail companies. What

were the union workers looking for. You know, at the end of the day that everyone is looking for a higher salary, but for railroad workers it was different. They are coming from a life of long hours. They're coming from a legacy where COVID has has meant that a lot of their industry has actually left working in railroads. What's important to note here is that their biggest issue was getting sickly, but was getting medically even during the pandemic.

A lot of these railroads have implemented a point based system. Essentially, you are on call. If we call you, you have ninety minutes to two hours to report to work, and if you don't, you will be penalized, you will be deducted in some way. That kind of policy is what these workers were potentially striking against, in addition to of course higher pay. Now some of the new details we

are getting in terms of what the contract. This agreement actually looks like includes a twenty four percent wage increase during the five year period from twenty twenty through four. So that does mean back pay going into the COVID era as well as an immediate payout of an average of eleven thousand dollars upon the ratification of the deal.

What that means, I think this is the new change in the language, Nathan, is that if this deal is indeed approved, those workers get eleven thousand dollars on average right off the bat. So in our last thirty seconds here, Crety, what are you looking for next? Now that we do have this tentative agreement announced, well, we are still waiting for the union membership. Though they have to approve it,

they have to agree with it. I mean, look, they had tentstive agreements for Ford History rail strike and they have still ended up going on strike. So really it's it's anyone's same here, all right, Bloomberg Radio and TV Markets correspondent Credy Group to keeping on top of any further developments. Now that we do have this tentative agreement reached between the unions and the freight rail operators as a creaty rightly noted. They're the union workers themselves are

going to have to ratify this thing. So we'll be staying on top of it for you ahead of that midnight strike deadline. Keep it right here on Bloomberg Radio. Karen Well, Nathan, it is five fifty two on Wall Street. It's time for the Bloomberg Law Report. Browns to you buy. American Arbitration Association business disputes are inevitable result fester 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. The Occupational Safety and Health Administration is looking at new helmet designs to replace the traditional hardheads worn at job sites by its inspectors. The sporting events video streamer Flow Sports is facing a class lawsuit. Plaintiffs accused the company of sharing subscribers personal

information with Facebook without their consent. Wegman's Food Markets is accused of infringing on an Israeli firms technology for distributing coupons via its mobile at 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, thanks, Now, another legal story we're watching.

Trevor Milton, the founder of the automaker Nicola, went on trial this week on charges that he lied to investors about his startup company's ability to produce trucks that run on electricity or hydrogen fuel cells and duped them into

buying Nicolas stock. First witness, the former Nicola contractor whose allegations are fraud at the company helped spur a criminal investigation, made a startling admission to the jury yesterday admitting he made six hundred thousand dollars off a short seller's report on Nicola. For more, Bloomberg's during grounds speaks to Bloomberg's

at the Ludlow who's covering the trial. Is the defense hanging its case on materiality, saying that Milton's statements weren't material to investors decisions to buy the stock, or is there another thread to their defense? What the defense has argued in opening statement is that the government's case is complete distortion. For one that they're trying to make Milton out to be a criminal with a sinister agenda to defraud.

What they will argue is interesting that he genuinely believed in what he was doinging that his goals were genuine. The other part of it is that the defense, in its early arguments basically say this is the CEO's job right to market the company, to talk it up, to get its name out there, and help it on its way to achieve its ultimate goal. There's also gonna be

a debate here around linguistics. What does the word prototype mean, what does the word timeline and manufacturing or develop actually mean? And we believe the defense will poke holes at the prosecution's argument about the meaning of what it was that Milton said. Tell us about the first witness who made a startling admission during the cross examination. Paul Lackey was a contract engineer that worked with and for Milton in ten developing the early prototype of the Nicola one, which

was the first iteration of Nicholas truck. He gave testimony that Milton, at a launch event in December two thousand sixteen, made misread presentations about the truck's capabilities but also the status of the truck. According to the witness, it was missing all of the key components that would have made it capable of functioning anyway. Now here's the key part. The witness told the jury that he received six hundred thousand U S. Dollars in compensation, effectively from a short seller,

Hindenburg Research. Hindenburg Research published its short report on Nikola in September of twenty which hit the company's stock and ultimately was another catalyst in the chain of events which led to Milton's first resigning and then being indicted. And the defense put questions to him about his knowledge of what happened with Nikola after six and he said, of course he didn't have any because he no longer worked

with the company. They also, on the issue of the six hundred thousand dollars, asked questions about his motivation, whether he was motivated to speak out against Nikola for money. So it will be interesting to see where that witness his testimony land tape with the jury. And that's Bloomberg's

Ed Ludlow speaking at the Bloomberg's John Garrosso. Catch more of that interview plus analysis of the latest illegal news by subscribing to the Bloomberg Law Podcast or downloading this show at Bloomberg dot com, Slash podcast, and 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 this morning, they're showing a little

more strength. SMP futures up six points down, futures of fifty six, nastay futures they're a little changed right now. And ten year treasuries down nine third day seconds, you know, three point four four per cent. So ahead on Bloomberg day Break and check on the business headlines and all the news you need to start your day, including that tentative pack between the US railroads and their unions. And this is Bloomberg