Bloomberg Daybreak: September 15, 2022 - Hour 2 (Radio)

of sexual harassment is suing him. Plus Ukraine, the senses damage liberated cities from Russia's occupation on Michael larn bore ahead and corns went for the Yankees and Boston another loss for the meth that comes whinis the city fields lea. That's all straight ahead on Bloomberg day Break on Bloomberg Eleving Trio, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Syrius x M one nine and around the world on

Bloomberg Radio. To come and via the Bloomberg Business apt And good morning. I'm Karen Moscow I'm Nathan Hagar Bloomberg Dave Right, 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 manage risk at Pershing dot Com. And futures this morning are moving higher. We're coming up to six o one on Wall Street, and we check

the markets every fifteen minutes throughout the trading day. On bloomberg S and p Future is up six points right now, dal Future is of fifty five and nastagg futures they're little change. The decks in Germany's up three tenths of a percent. Ten year Treasury down nine thirty seconds here three point for three percent. Nathan and Karen, we begin with breaking news this morning. It looks like a freight

rail strike will not happen tomorrow. The Labor Department says US rail companies and union negotiators have reached a tentative deal that could avert a strike that threatened to disrupt rail service nationwide. Bloomberg's Amy Morris has the latest developments from newsroom in Washington. After more than twenty consecutive hours of negotiations. The Department of Labor says they've helped him are out in agreement that, in their words, balances the

needs of workers, businesses, and the economy. President Biden released a statement thanking the parties for negotiating in good faith and reaching a deal to keep the rail system working and avoiding a disruption of the economy that would have cost the US two billion dollars a day. Rail workers will get better pay and improved working conditions. The companies will be able to recruit and retain more rail workers. So far, no word from the company's nor the labor

unions about this deal in Washington. I maybe more as Bloomberg Daybreak. All right, Amy, thank you. We'll keep you up to date on those details throughout the morning here on Bloomberg Radio. But first let's get you a caught up on the markets. Equities are stabilizing in the wake of Tuesday's sell off. Yesterday's late day rallies on the SNP five hundred, it flows up a third of up per cent. As for bonds, the US two to thirty year curve has reached the most inverted level this century.

Megan Hornman, as chief investment officer at Verden's Capital. You're going to see a lot of this chopping is 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 digests. 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. And Verden's Capitals Megan Horman says,

we're all waiting for Wednesday's FED decision. Markets are pricing in a seventy five basis point rate hike. Now there's a gloomy prediction for requities this morning from Ray Dalio. Karen, the billionaire founder of Bridgewater Associate, says stocks could fall about that's if the Fed's target rate reaches four and a half percent. The comments in a LinkedIn article follow this week's hotter than expected inflation data. Nathan. A busy week on the economic front continues this morning with the

release of US retail sales for August. We get a preview from Bloomberg's Muscle 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 McKee Bloomberg Daybreak. Okay, Mike, thanks, let's turn overseason at at geopolitics. Who are Chinese President Shi Jinping and Russian President Vladimir Putin our center stage?

The leaders are taking a new step today in their no limits friendship. Bloomberg Daybreak Asia anchor Brian Curtis has more from Hong Kong. Putin probably shouldn't expect too much at his first meeting with she since the Winter Olympics. China was caught off guard when Russia invaded Ukraine, a few weeks later, making struggles to offer support while avoiding endorsing a clear violation of sovereignty, but China in the grips worth it, especially after an empty Polos He visited Taiwan.

Now China says it fully understands all measures by Russia to protect his interest. 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, Brain, Curtis Bloomberg, Debreak, Brian, thank you in the UK today and are we really it's all about the Queen. Queen Elizabeth's caffin is now in Westminster as she lies in state for four days, and we get the latest from Bloomberg's You and Parts in London. Good morning You, and

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, and Majesty's coffin is now lying in state at the heart of the Palace of Westminster, where it

will remain until Monday morning ahead of the funeral. Monas are 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, an Anu spoin Bay Day breaking. All right you and thank you. 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 Borden has been at the energy giant for almost forty years. He's been CEO for

the past date. He'll now be replaced by Shell's head of Gas and Renewables while Swan. The annual list of top business schools in the country by Bloomberg Business Week is out, Nathan, and this year Stanford is again number one. Its results remain consistent with past years, as its scored highest in compensation, networking in entrepreneurship. The University of Chicago's Booth School and Harvard Business School time for second place.

And speaking of Chicago, careen. When it comes to housing, that city, along with New York, are the most vulnerable to price declines in a potential economic downturn. That's according to a report by Real Estate Data Analytics from Adam. Of the fifty counties most at risk, nine are in and around New York, six are in the Chicago metropolitan area, thirteen are spread throughout California. These counties all have high

levels of unaffordable housing, underwater mortgages, foreclosures, and unemployment. Futures of moving a touch higher now with SMP futures up six points, staff futures of fifty three, NASTAC futures higher by nine points. The tenure treasury is down nine thirty seconds. Yield three point four three percent, yield on the two year three point eight one percent. Straight ahead, your latest local headlines and a check of sports. This is Bloomberg and it sounds six o seven on Wall Street where

it's sixties seven degrees in Central Park. Still doing with issues on the North Bend New Jersey Turnpike. Will fill you in traffic shortly. First, Michael Bark with what else is going on in New York and around the world. Good morning, Michael, Good morning. Nathan, a one time any to former New York Governor Andrew Cuomo, sued him, saying he sexually harassed her and then smeared her reputation after she became the second woman to publicly accuse him of misconduct.

Charlett 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, including telling her he was lonely and on the hunt for a girlfriend. The New York City Commissioner of Immigration Affairs says that many of the migrants who are being bussed from Texas did not want to go to New York. Commissioner Manuel Castro says the city is helping them get

to other states. Castro to at Fox five, many want to go to places like Florida, where the largest community of Venezuelans live. A turner flight with about fifty Venezuelan migrants, including children, landed on Martha's Vineyard. Yesterday's turner flight was arranged by Florida Governor Around de Santence'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. Barbara Rushes with St. Andrew's parents. 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. It's been amazing, Barbara rush with St. Andrew's parish. Some state officials in Massachusetts

have blasted the Santis, calling it a political stunt. A Brooklyn mother has been officially charged with drowning her three children, who were later found on the beach in Coney Island. Aaron Murdy faces several charges, including three accounts of murder. President Voladimir Zolensky went outside the capitol of Kiev to assess the damage in cities once again in Ukrainian control. He says Isiam was left largely devastated, with apartment buildings

blackened by fire and pock marked by artillery strikes. The main thing did not mean here our soldiers here. That is very important thing that its supports supports people. I see how people meet them, that is, you know who

are a sensitive moment. Meanwhile, President Zelenski says Russian cruise missiles hit a reservoir in his hometown in an apparent attempt to flood the City Global News twenty four was a day on air and on Bloomberg Quicktake powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan, Thanks Michael almost six ten on Wall Street Time for

the Bloomberg Sports Update with John Stashaw. Nathan. So much for the Mets being able to take advantage of playing inferior opponents. Last eleven games have been against Washington, Pittsburgh in Miami the Cubs four, the worst teams in the league. In those games, the Mets just four and seven, swept at home by the low lea Cubs, and last night Chicago led six to nothing in the first didn't David Peterson phase six batters got only one out. Cubs went

on to win six three. Mets still in first place only because Atlanta has suddenly lost four out of five. Mets lead by a half game. Host the Pirates tonight Yankees for the sweep for the mini two games series in Boston. No Aeron Judge home runs, but another big

night for Labor. Torre has had the winning hit Tuesday, had three more hits last night, the one in the fifth that Ain't snapped the scoreless tie, and when Boston capture Connor Wong through the ball wildly three runs scoring, including Torres circling the basis the yanksllentce buy at the three Donovan Mitchell introduced in Cleveland, traded by Utah. The New York native was asked about a trade to the NIXT. I thought for sure I was going back home. I'm

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 guysman and add to it, you know. And I think that for me is what I'm truly excited to. Meanwhile, controversy in the NBA Lebron James critical of Commissioner Adam Silver's decisions to suspend Phoenix Suns owner

Robert Sarver for only one year. Starver was found to have conducted racist and misogynistic behavior. Tom Brady, of course, changed his mind about retirement. Serena Williams on ABC said maybe Brady started a cool trend. Asked if she might do likewise. Serena said, you never know. John Stashward Bloomberg sports Nathan and does seem to be the trend, just saying you never know, Thank you, John S andp Futures moving a higher up six point, Staff futures up fifty five.

Dancetat futures higher by nine points. So take a look at the market. Next with Liz Anne Saunders of Charles Schwab. This is Bloomberg Bloomberg eleven three oh weather, mostly sunny, mid seventies today. We'll get into the upper seventies tomorrow at the sunshine probably the mostly sunny low eighties Saturday, mid eighties under a mix of sun and clouds on

Sunday right now sixty seven in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business Attend at Bloomberg Quick Take. This is a Bloomberg Business lash and I'm Karen Moscow and futures are well, they're higher, They've been showing more strength as investor sentiment we have been wavering just a bit between hopes and inflation is peak and concern that large interest rate hused by the feder reservell hamper economic growth.

Treasury yields are on the rise, the dollar is steady, and we checked the markets every fifteen minutes throughout the trading day. From Bloomberges and peef you churers up about seven points down, Future is up fifty five. Nasday features up twelve the decks in Germany's up three tenths of a per cent ten, Your treasury down nine thirty seconds. You'll three point four four percent. They yield on the

two year three point eight one percent. NIAX Screwed oil is down seven tenths per cent or sixty cents at eighty seven dollars, eighty eight cents of barrel comic school down six tenths per center, ten dollars thirty cents at six eighty announce the euro point nine zero against the dollar, British pound one point one five oh eight and the yen one forty three point three eight and Bitcoin this morning of one point two percent at twenty thousand, one

nine dollars as of Bloomberg Business Flow Show. Here's Michael Barr with more on what's going on around the world. Michael Parin, Thank you very much. It looks like a freight rail strike will be averted. The Labor Department says US rail companies and union negotiators have reached a tentative agreement. Stephens 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 billion dollars a day. Mourners continue to file fast casket of Queen Elizabeth at Westminster Hall in London. Some people have waited in long lines for up to thirty hours. In baseball, the Yankees beat the Red Sox five three, the Mets lost, The Orioles beat the Nationals six to the A's and Giants.

One Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael Barron, This is Bloomberg. Nathan Okay, Michael. Thanks at six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg day Break. Let's get you set for the market. Open this morning, liz Anne Saunders joins US now chief investment strategist at Charles Schwab. Liz Anne,

it's great as always to speak with you. We've been focusing, of course, this morning on the breaking news of this tentative agreement reached between the freight rail operators and the unions. Are you looking for any market reaction depending on whether this yield does go forward and become a done deal. Well, we we know we have a looks like a bit of a positive opening. How much that is tied to this news, It's hard to say. I think there was

always hope that there would be some negotiated settlement. I think what would have been worse is the market reaction where they or not, or if there is not, just because of how many goods move over the rail lines, between energy and food, agriculture, retail goods. So I think this would have been a pretty significant economic hit. So fingers crossed, Yeah, certainly that is the case. Is this a market that's data dependent? As much as the FED says it's data dependent, Is it really all about the

FED for this market right now? I think this is incredibly data driven, macro driven market right now. Uh, and very much about the FED. It is quite extraordinary. Given that just about every economic data point, even inflation data point, has enough leading indicators associate with them, you can get a sense whether you're going to see a significant upside or a significant downside move. And yes, we saw upside to c p I, but it wasn't as extreme I

think is maybe the market reaction was so um. I also think it's the impact of some of the cohorts who are in the market on a day to day basis driven by algorithms, quant race strategies that are you know, keying off very very short term metrics, and I think that that can cause some of these day to day and even intradace swings to be a bit wilder than the data and or fundamentals would suggest. What do you think it's going to take to get the market to

be more focused on fundamentals? What's it going to take to shake this focus from what the Fed does. I mean, it seems like it's been an overwhelming focus for this market for some time. Well near term, I think we probably have to get through the September f O m C meeting, and as is always the case, the press conference will at least as important as the announcement that is made to see what Powell might telegraph as we

head to the November and December meetings. I think that was the more important outcome of the slightly hotter cp I report. You know, there's there's been a debate is it gonna be seventy is it gonna be a hundred? And I honestly don't know. However, I think the to me, the likely there is more on the seventy end, just because I'm not sure at this stage in the game Powell wants to be seen as putting forth shock and

aw kind of policy. I think more likely is keeping both November and December firmly on the table and really pushing back on this notion that even existed a month ago that after a September hike, the Fed might have the green light to pause. And I think any any green light to pause is probably a story, not a story. And then earning season, you know, typically an earning season you get little more of a fundamental basis to what at least individual stocks are going will have a few

weeks to wait before that starts. Are you looking for further earnings revisions given the hotter than expected inflation we saw this week. Now, I think you know, we've seen the trend in estimates for the second half of this year and into the first half the next year start to move down. But I think there's more to go. In dollar terms. You still have the consensus at about twenty five for US and pearentings in compared to two

o eight. I wouldn't be surprised if the number drips down to something more in line with last year's, if not even a bit of a discount to last year. So that's still some more room to go on the downside, given that we're seeing the demand side weekend at the same time labor costs, which is a significant uh wait in terms of the revenue um outlook of of SP five.

If you just do the simple historical math of where labor costs are relative to revenues, that suggests profit margins more in the twelve to thirteen percent range versus the fifteen percent or so that we saw in the last couple of quarters. So I think it's both a weaker profit story to come as well as a weaker margins story to come. All right, As always, good to get your thoughts Lizianne, thanks again for being with us this morning.

Lizzie Saunders, chief investment strategist at Charles Schwab. Futures slightly higher, we'll call it. SMP futures up five points right now. DAL futures up forty two. NASTAC futures little change to the upside, up eight points. The tenure Treasury is down nine thirty seconds for a yield of three point four four percent yield on the two year three point eight

two percent. Nim X crew moving a bit lower, down seven tenths percent or sixty cents at eighty seven dollars eighty eight cents of barrel, and uh comex s Gold is down six tenths per center ten dollars twenty cents at sixteen ninety eight eighty announce still ahead. We'll get you the latest details on this tentative agreement reached that could avert a nationwide rail stri as Bloomberg daybreak continues.

This is Bloomberg, Bloomberg eleven three oh weather, mostly sunny, mid seventies today, upper seventies, sunshine to end the week, probably the mostly sunny Saturday, low eighties. We'll get into

the mid eighties. On Sunday right now sixty four in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Living Freedom to Washington, d C, Bloomberg On to Boston, Bloomberg one O six one to San Francisco, Bloomberg NUN sixteen to the Country Sirius XM CHO one nineteen and around the globe, the Bloomberg Business apt and Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar

and I'm Karen Moscow. We're just about three hours away from the open of US trading. Time for the five things you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers charges margin loan rates from two point three percent to three point three percent. Their clients can also ear an extra income by letting their fully paid shares of stock rates subject to change.

Learn more at I d k R dot com slash compare. First, it looks like a freight rail strike will not happen tomorrow. The Libor Department says US rail companies and union negotiators have reached a tentative deal to avert a strike, and Bloomberg Government reporter Jack Fitzpatrick has 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, and Bloombery Jack Fitzpatrick says the Labor Department believes the agreement balances the needs of workers, businesses, and the economy. Now will continue keeping up to date on those details caring throughout the morning here on Bloomberg Radio. But first let's get you caught up on markets. Equities are stabilizing in the wake of

Tuesday sell off. Right now, SMP futures are little changed. Concerns over inflation and the Fed remain front and center. Robert Teeter has head of Investment Policy with Silver Crest Asset 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 Teeter at Silvercrest 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 equitation this morning from billionaire Ray Dalio, the founder of Bridgewater Associate, says stocks could fall about twenty percent if interest rates increased to about four and a half percent. Nalio made the prediction in a LinkedIn article. A busy week on the economic front continues today, Karen, with the release of monthly retails. Say else, we get the numbers this morning at a thirty Wall Street time,

along with data on Empire manufacturing and weekly jobless claims. Well, we turn overseas now, Nathan, and geopolitics is also front and center. Chinese President she Jin Ping and Russian President Vladimir Putin meet today for the first time since Russia's invasion of Ukraine. Beijing has so far stopped short of sending military supplies or financial support to aid Russia's invasion. And that's the five things that you need to notice

start your day. Brought to you by Interacted Brokers, Straight Ahead, your latest local headlines, plus a check of sports. And this is Bloomberg. Thank you. Karen sixty three on Wall Street, sixty six degrees in Central Park Gotta crash in northbound Cross Island Parkway at the l I E. 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, A one time aide former New York Governor Andrew Cuomo, sued him saying he sexually a raster her and then smeared her reputation after she became the sack and a woman to publicly accused him of misconduct. Charlotte Bennett's lawsuit, filed in the federal court in New York City, repeats many of the allegations she has talked about publicly. New York's Attorney General is considering suing one

of former President Trump's children. According to The New York Times, a g Letitia James rejected an offer from Trump's lawyers to settle a civil investigation into the family's real estate business. It sets the stage for a lawsuit accusing Trump of fraud. Ukrainian Presidents Vlodomir Zelensky made a rare foray outside the capital to assess the damage in cities once again in Ukrainian control. Zelenski says, after almost six months under Russian occupation,

euseum was left largely devastated. The view is we're shocking, but it's not shocked for me because we began to see the same pictures from Bucha from the first occupied it charactors destroyed buildings, he old people. President Zelinski a turner flight with about fifty Venezuelan migrants landing on Martha's Vineyard Wednesday. It was arranged by Florida government around the Santiss 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. Massachusetts States Senator Julian Seys said he understands why the migrants come to the US, and then blasted the senters, they're looking just for a better life. Um and and and to see the gotcha moment. This stunt really used for political gain is is pretty disgusting. Massachusetts State Senator Julian Serve.

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 porn and enticing girls for sex outside the courtroom. Kelly's attorney, Jennifer Buing, said prosecutors overreached after the documentary Surviving R. Kelly sparked a 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. The verdiet 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, analysts more than a hundred twenty countries' MICHAELA. Barr, this

is Bloomberg, Nathan, thank you, Michael. Just about six thirty six on Wall Street John Stashower as the Bloomberg Sports Update. All right, Nathan and the Mets don't win the n l e s, they might look back at this recent stretch. Unable to take advantage of playing teams. They should be able to be swept in a three game series for the first time all year, swept at home by the Cubs, who outscore the Mets in the three games set fifteen

to six. It was six three last night. Six nothing in the first inning is David Peterson got lit up. Mets the lead Atlanta by a half game. Yankees and Red Soft scoreless. Fifth inning in Boston, Yanks had two on Labored Torres. The plate ibra lines another basit to right field, rounding third is Hix. Here comes a flow home. It is not in time and they have all the bullets thrown. The right field scoring is Judge. All the way to third is Glabor. He runs third, coming home.

The thrower is cutting down on w f ANSA Torres circled the bases, and then two more Boston errors later, a Yankee running the nine. Yanks beat this up five to three, and Esther Cortez sharp and five and he's got his tent. When Clark Schmidt followed him through two perfect frames of belief. The two teams behind the Yanks met Toronto beat Tampa Bay. It's the Blue Jayson Trail the Yanks now by six. Career home run number one hundred for Vladimir Guerrero gets there at age three. I

win for the Cardinals, a record set. Adam Wainwright on the mount Yadier Molina his catcher for the three hundred and twenty fifth time most ever charges in Cheans kick off Week two tonight in Kansas City Giants Sundays Carolina will see if white out Kadarius Tony gets more play 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 visit Cleveland.

Joe Flacco again at quarterback. Zack Wilson is, however, back practicing. John stastually Bloomberg Sports Nathan all Right, John, thank you sixty seven on Wall Street Time now to take a look at stock, some of the names moving in the pre market. Bloomberg TV anchor Markets correspondent Danny Burger is with US this morning watching railroad stocks on where of that tentative agreement between the unions and the freight rail operators. Danny, what are they looking like? Well, we are seeing gains

pre market. I mean this comes after they were beaten up pretty significantly, falling four and one percent on Tuesday and Wednesday for a lot of these rail operators. Uh so companies like c s X that's getting more than two percent, Norfolk Southern more than one and a half percent, Union Pacific up almost five percent. And again, you know, this is the news coming this morning that the railroads

and unions have reached a tentative agreement. So again, stock price could change depending on what that actually looks like the contours of it. But at least now we can price we can price out some of the pessimism around a potential strike from the US rail unions. Yeah, we'll be keeping an eye on those stocks, I'm sure throughout the day as we continue to get more details on this tentative agreement. In the meantime, Danny, a bullish call

on some hotel chains, Yeah, exactly. This one's from Barrenberg. There there are a couple they've noted here. Um, I would just Flag, marry At, Hyatt, and Hilton because these ones they've actually upgraded to buy. We've seen immediate reaction in the share price Marriott for example, about up one and eighth fifth percent. They basically said, look, it doesn't the price doesn't reflect the recovery we've seen and Ladging. People are going out, they're traveling again, they're going to hotels.

They write, even if we have a recession into three, the price still should be higher. There's no structural risk on on things like disruption from Airbnb. So just simply put, these are cheap. They're not fairly valued, they say, by these stocks. In our last thirty seconds here, Danny, we've gotten word that the mega city in China, chang Do, is starting to ease its COVID lockdowns. What effect is

that having on individual names? Yeah, so just some of the reopening stocks, I mean these are mostly Chinese stocks listed as a d r S in the US. UM China, for example, which which operates a lot of those chain of fast food fast casual type restaurants, starts up two point four percent. Again, this is their China operator of Yum. So any of those reopening plays on China doing better

in the pre market session. All right, thanks for this, Bloomberg TV anchor and markets correspondent Danny Burger, keeping an eye on early market movers for us this morning. Going to pass along this red headline that just crossed the Bloomberg terminal out of China. The yuan has weakened to seven against the dollar for the first time since July of Checking the offshore yuan right now, it's at seven

point zero one zero eight. As for the stock market, futures are turning lower now, led by tech heavy NASDAC features down four tense percent or forty four points. SMP futures are down eight. DAL future is down forty two, and the tenure Treasury is down twelve thirty seconds. Of the yield three point four or five percent yield on

the two year three point eight three per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather mostly sunny, mid seventies today upper seventies to end the week, sunny and pleasant. We probably the mostly sunny, little warmer Saturday, low eighties, mid eighties by Sunday right now sixty six 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 is a Bloomberg Business

Last and I'm Karen Moscow. We're watching futures swing between gains and losses as they're now moving lower. We go to the first word breaking news dash for today's morning call, and here's Bill Maloney. Bill, good morning and good morning, Karen.

That's right. US futures with a recent fade here with doubt futures now down fifty seven points, as IF drop ten and NASDEK futures declined by fifty the US chen yel at three point four five percent, Gold is down eleven, Oil trading lower, and Bigcoin is trading higher by one percent. Shanghai felt one point two percent overnight, while Europan markets are trading mixed this morning. And back in the US on the economic Frinday thirty retail sales initial job as claims,

Empire Manufacturing and Philly fed. In other news, the US rail companies and the Union came to a tentative agreement, and Disney may merge Hulu and Disney Plus to create a single streaming service. Wrapping things up. Netflix was raised to outperform at evercore I s I Coles was cut to hold Brad Jeffreys live from the first breaking news dost gomb Bill Maloney can all right, Bill, thank you to here lie breaking news of your Bloomberg type squawk on your terminal. Sq you a w U K and

that's a Bloomberg business flash. Now Here is Michael Barr with more on what's going on around the world. Michael Baron, thank you very much. President Joe Biden says Attendantive Railway, the labor agreement has been reached, diverting a potentially devastating strike before the pivotal mid term elections. Bidens and in a statement this morning, the tentative 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 almost three miles. In baseball, the Yankees beat the Red

Sox five three. The Mets lost. The Orioles beat the Nationals six to the A's and Giants won global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalist and analyst more than a hundred twenty countries. Michael Barn, this is Bloomberg, Karon, all right,

michaelbar thank you well. At six forty nine on Wall Street, and we turned to news and science and technology now with the Bloomberg and j I T Stem Report, And here's what's making news and science, technology, engineering and math. Samsung Electronics is shifting away from fossil fuels and aiming to entirely power its global operations with clean electricity by

twenty fifty. This Auth Korea based company is a top producer of computer memory, ships and smartphones, and by some estimates, the biggest energy consumer among hundreds of global companies that have joined the campaign to get a hundred percent of their electricity from renewable sources like wind or solar power.

For its Glitzee, introduction of a redesigned Mustang sports car powered by fossil fuels runs counter to the industry narrative of ditching gas burning cars to make way for electrified models. Ford is betting there's enough life left in the fifty eight year old Mustang to help pay for the company's electric powered future. Forward is investing fifty billion dollars to build two million ev annually by and crypto's most important

commercial highway, Ethereum, just got repaved. The blockchain Network completed the crypto world's biggest and most ambitious software upgrade to date. As according to its co founder, the upgrade is called the Merge. It replaces power hungry computers that were used to order transactions on the network with a more energy efficient set up. And that's a Bloomberg and j I t Stem report. Nathan, thank you, Karen rely from the

Bloomberg Interactive broker Studios. Where at six fifty on Wall Street Time now to check what's going on in DC. Some of the top stories in our nation's capital include at tentative deal reached between freight rail companies and unions that could avert an asianwide rail strike. Senator Graham's abortion bill creating midterm term wall for Republicans, the January six Committee receiving secret service text messages and social media firms

to unveil anti hate actions at the White House. Let's bring back Bloomberg Government congressional reporter at Jack Fitzpatrick starting a course with the breaking news Jack, crisis on the rail's potential tentatively averted. Yeah, it's significant enough so that

the President has put out a statement. The Labor Secretary, Marty Walsh, who was in these conversations between the two parties, Uh, it put out a statement this This seems to be pretty significant, but they are calling it a tentative agreement reached after I believe about thirty hours of negotiations to avoid a strike. Uh. The key issue there was not really about pay. It was about paid medical leave and the lack of flexibility and heads up about when workers

would be needed. Uh, the issues of people being only given ninety minutes to two hours notice that they need to be in at work, even sort of in the middle of the night or early morning. Uh. That has been addressed to some degree as we look for the details. You know, the President said, uh, peace of mind around

their healthcare costs, it's part of this agreement. So it's it's a bullet dodged for the Biden administration that did not want to see a strike given the possible economic uh impact of that and also the fact that it would not be positive for the President's relationship with the unions, and UH, potentially averting a crisis that's coming less than

two months before the mid term elections as well. We got to talk about the political ramifications, jack Exactly, this close to the mid term elections, it would be a really really significant negative thing for this strike to happen under the president's watch. He's played up his relationship with unions in support for unions, UH, and the rail officials have said this would have been about a two billion

dollar per day hit on the economy. So depending on how long it goes, it would have been a really negative thing. UH. You know it just by comparison, because there's a government funding deadline coming up, this would be I think significantly worse than a government shutdown. UH, and less than two months before the the mid term would

have been very very negative. So UH, as long as the tentative agreement becomes an agreement period, UH, this is very good news for the Biden administration and Democrats on the campaign trail and coming into a mid term election that could potentially hinge on the economy. Jackets really interesting this week to see a Senator Lindsey Graham put out this abortion bill, uh and potentially open up some differences

in strategy within the Republican Party. Yes, or just a lack of strategy really, you know, Lindsay Graham put out this bill that would put forward a ban on abortion after fifteen weeks of pregnancy. UM. You know, I think the most obvious sign that that was not put out, uh with the blessing of everybody in the party heading towards the mid terms, was when Mitch McConnell was asked about it and said he thinks that that's something that

should be left to the states. Uh. There is pressure on some Republicans from uh, anti abortion groups to take this kind of step. He maybe he wasn't just focused on moderate voters in swing states, but this is something that is a pretty significant inconvenience for Republicans on the campaign trail. Right now, let's turn to some of the

developments around the January six Committee. We've heard that they're going to be holding it another meeting at the end of this month, and it looks like they may have gotten uh some key evidence that they've been asking for for just about a month. I think, right, yes, they had been seeking text messages among Secret Service personnel. Uh that is among a big influx of information they've gotten recently.

The chair of the committee, Benny Thompson, said, they got a combination of text messages, radio traffic, and other things that amount to thousands of exhibits, he said from the Secret Service. Uh So they have been talking about the

possibility of a September hearing. That's not set in stone, but they seem to certainly have a lot of information to sift through from the Secret Services perspective around h January six, and I saw some interesting news come down from the Capitol Hill news service punch Bowl News that the that the January six Committee is no longer wanting to cooperate with the Justice Department investigation into January six. Do we know anything more about that? Well, that's not

really a change in their position. They have said that they're the news and punch Bowl today is they're not going to be cooperating with d o J, at least not yet. They had previously said there's some information they could share, but there's not some formal relationship of information sharing. The report today is that they're they're not cooperating with d o J. At this time. Uh, it's not shocking to to hear that as uh, the FBI, M D

o J investigate uh, people involved with January sixth. January six and the interaction at the Capitol and also the mar Lago search issues of classified documents being taken by the former president. That that's going on in a separate way from this more political process of understanding everything around January six. So it doesn't mean that there's going to be absolutely no communication between those two parties, but there's

not um a collaborative effort there. Okay, just thirty seconds left here, Jack, But what's going on with social media companies at the White House today? Yes, they're going to be at the White House. A number of big names You've got uh Meta which of course has Facebook and Instagram and other big names in social media that are going to have an announcement on what they're doing to stop hate speech and related activities. They're going to be

federal announcements. Is sort of in conjunction with that, Uh, clearly a high priority for the Biden administration. Touching on, you know, broader context around the white supremacist screed by the shooter that killed people in Buffalo. Uh, it plays into some broader White House initiatives, but there will be some announcements from those companies today at the White House.

All right, we'll be following that as well. Bloomberg Government reporter Jack Fitzpatrick with us from our Bloomberg nine one studios in the nation's capital. Read more at Bloomberg dot com or on the Bloomberg terminal, and listen to Bloomberg Radio in Washington Bloomberg one and one oh five point seven FM HD two. Bloomberg Surveillance is next for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg