Bloomberg Daybreak: September 16, 2022 - Hour 1 (Radio)

Plus preparations continue for Queen Elizabeth's funeral on Monday. I'm Michael bar More Ahead, I'm Don Stashard Sports. The Mets beat the Pirates, The Yankees visit Milwaukee tonight Thursday Night Football,

That Jeeves beat the Charger. That's all straight ahead on Bloomberg Daybreak on Bloomberg Elimen Frio, New York, Bloomberg Washington, d C, Bloomberg one six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio Dot Come and via the Bloomberg Business Add Good morning. I'm Nathan Hager, and I'm Karen Moscow and US DOT Index futures are lower this morning.

We are coming up to five oh one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, U S and P futures down thirty seven points down, futures down two fifty four and Astack futures down one dty eight. The decks in Germany's down one point eight percent, ten year treasury down four thirty seconds. You're three point four six percent yield on the two year three point eight nine percent, Nathan hearing.

This stock slide is deepening as we close out a trading week on track to be the worst since June. European equities are down for a fourth straight day as our stocks in Asia. Two year treasury yields are climbing to their highest level in fifteen years, deepening the curve in version that's seen as a recession signal. But Brent Shooty, chief investment strategist with Northwestern Mutual, thinks we may be

seeing a bottom. Sentiment is already awful. People have sold already thrown at fifty percent, retracing of blows that we had, and I think you have the basis to the market having put in the bottom. That doesn't mean it won't be a grinding, back and forth advance, but I don't think we're going to go below those tune blows. Prince Duty with Northwestern Mutual says stocks usually hit a bottom

when inflation peaks. We'll make an investors get another key economic report to digest before we head into the weekend. At ten am Wall Street time, we get September sentiment numbers from the University of Michigan and Bloomberg, so Michael McKee has more The sustained slide in gasoline prices should lift the headline sentiment index as well as consumers view of current economic conditions. The numbers that matter most, however,

it will be the expected inflation gauges. The FED wants to ensure expectations stay anchored so a wage price spiral doesn't develop. Expected yearhead inflation should continue to drop along with gasoline prices. The rate was four point eight percent in July. That was down from five point two percent in June to the lowest in eight months. Michael McKee Bloomberg Daybreak. All right, Mike, thanks The sentiment report caps off of busy week of data, highlighted by Tuesday's hotter

than expected inflation report. Traders now during their attention to next week's FED meeting, the debate is whether the Central Bank raises rates by seventy five basis points or a full one per cent. Liz and Saunders is chief investment strategist at Charles Schwab. To me, the likelihood is more on the seventy five end, just because I'm not sure at the 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. Now when it comes to market volatility, liz An Saunders or Charles Schaub says, high speed traders maybe driving some of the wild swings we've seen this week. Well, and this Maurin's equity action. Nathan Shares a FedEx or down

nine cent in early trading. The company said preliminary results for the quarter fell short of expectations. Let me get this story from Bloomberg's Charlie Pellett The Courier said adjusted earnings for the fiscal first quarter were three forty four share, well short of the five ten average est about of analyst. CEO Raj Supermannian said in the statement, global volumes declined as macro economic trends significantly worsened later in the quarter,

both internationally and in the US. In addition to withdrawing its fiscal three earnings outlook provided in June, FedEx also said it expects conditions to worsen in its fiscal second quarter. In New York, Charlie Pellett Bloomberg Daybreak. Okay, Charlie, thank you. Another stock falling this morning is General Electric. Those shares you down four percent in early trading. Gees finance chief is warning supply chain challenges will weigh on its third

quarter performance. Well, Nathan, the rails are still on the move this morning. A tentative labor agreement is in place between freight rail companies and unions, and that aversus strike. President Biden reportedly told both sides failure was not an option. Bloomberg political contributor Rick Davis says the president deserves the victory lab and we had a big run up to this.

Everybody was looking a lot of concerns about the impact on the economy, and the team and the president came through and and this is what you wanted to have happened, and they deserve a right to celebrate. Rig Davis spoke at our Washington correspondent Joe Matthew on Bloomberg's sound on. Stay tuned for more on the tentative deal when we speak with the Labor Secretary Marty Walsh. That's coming up on Bloomberg's Balance of Power Live at noon Eastern on

Bloomberg Radio and Television. Staying with Politics Caring, there's news on the Justice Department's legal battle with former President Trump. A special Master has been named to review documentsies from our lago while denying a request from the d o J to keep using the documents in their probe. Bloomberg's

Amy Morris has details from our newsroom in Washington. Both the Justice Department and the Trump legal team agreed retired federal Court judge Raymond Deary would be a suitable candidate for Special Master, but the government won't be allowed to keep using about one hundred documents listed as classified until after the Special Master reviews all eleven thous and documents to determine if any should be withheld because of attorney

client or executive privilege. D o J also asked for a deadline of October seventeenth, but the court gave Deery until November thirty to complete his review, and the court ordered Trump to cover those costs. In Washington, I'm anymore as Bloomberg daybreak a right amy thank you Meantime in the Middle East, it's a meeting of two and battled leaders. Russian President Vladimir Putin told Chinese leader she Jan Ping he understands Beijing's questions and concerns about his invasion of Ukraine.

Begin More from Bloomberg Stephen Angle in Hong Kong, this relationship is not as rosy and positive as it seems on the surface. The war does not necessarily play to China's needs, and any hope for a quick invasion and quick resolution of the Ukraine war is long. In the review of Mirror right now, it's been going for more than six months, and Bloomberg Stephen Angle says it was the first in person talks between President's Putin and she

since the start of the war were in Ukraine. S ANDP future is now down thirty four points down, futures down two thirty three, Nastack futures are lower by a hundred thirty points the ten. Your treasury is down three thirty seconds. You'ld three point four or six percent. You'ld on the two year three point eight nine percent. Straight ahead your latest local headlines into check of sports. This

is Bloomberg five oh seven on Wall Street. We're dealing with a truck fire this morning, south found of Jersey Turnpike Nearics and twelve. Details coming up in traffic. First Michael Byer with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York is reassessing the city's right to shelter practice following an influx of more than eleven thousand asylum seekers

who have been busted from Texas. That's according to Mayor Eric Adams, chief Council, who says the city is nearing a breaking point with asylum seekers and the homeless. Council Brendan McGuire has said, though the law itself is staying put, obviously, none of those practices developed with anyone contemplating that they were going to be over ten thousand individuals bust into New York with no connection to New York from from overseas.

Mayor Adams says the city will not be like those municipalities and states that fly people to Massachusetts or put people on buses. Are Adams spoke while touring an asylum seeker resourced navigation center, it doesn't matter if you came here on a Mayflower or on a bus. At the port authority, you deserve the dignity and respect that this city continues to show. Texas Governor Greg Abbott has been

sending migrants from his state to New York City. Ukrainian authorities have found a mass burial site near a recaptured northeastern city previously occupied by Russian forces. President of Voladimir z Lensky announced the discovery in his nightly addressed to the nation. In the UK, preparations are ongoing for the

funeral of Queen Elizabeth the Second next week. Rehearsals are underway as hundreds of soldiers and bagpipers are practicing for what is expected to be the biggest international event the UK has hosted in decades. In Westminster Hall. Meanwhile, thousands continue to wait hours in long lines to pay their respects to the Queen as she lies in state, including this woman. We were talking before we came, so we

can't see, do we fow? But when we s stood there, she didn't know what to do to one another, and we both just about and then it's just that really overwhelming feeling. That Special coverage of Monday's funeral can be heard live on Bloomberg Radio starting at six am Wall Street Time. The U S National Hurricane Center is keeping a close eye on the newly formed tropical storm Piona

in the Caribbean. Forecasters say if the storm stays on its current track, it will move through the Leland Islands today as it heads toward the Virgin Islands and Puerto Rico. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts and more than a hundred twenty countries. Michael Barn This is Bloomberg Natham. Thank you, Michael. Almost five ten on Wall Street Time for the Bloomberg Sports Update. Good Morning,

John Stann Show, Morning Nathan, All Around Baseball. It was Roberto Clemente day and nearly fifty years after his death in a plane crash. The ceremony took place in New York. The Tampa Bay Rays started ten Latin players, first time that's happened in City field. The Mets all war Clement's number twenty one the eighth the Pirates Clemente's team six to one to snap a three game loving three. Daniel vogelback with the Mets acquired from Pittsburgh, had two h

three RB I s fifteen twin for Carlos Carrasco. The Mets now lead Atlanta by one. Dame Yankees a left Frankie Montas on the mount tonight in Milwaukee. He's made seven starts with the Yankees, only one once Thursday Night Football to kick off Wake two. Chargers lead in Kansas City by ten. The Chiefs scored the next twenty and included that ninety nine yard interception returned by Jalen Watson with ten and a half minutes to go. That's not the tie case won seven twenty four cost the injury

for Sea at all their stars safety Jamal Adams. The ex Jet done for the year. Wren Quad w NBA Finals the Connecticut Sons stayed alive, outscored Las Vegas to seven. In the fourth quarter, they went by twenty nine. The Aces still lead the best of five series to to one. Roger Federer third on the list of most brand slams

one with twenty. He was passed by both Rapiano dal and Novak Djokovit, but Federer obviously had a brilliant career, ranked number one for two hundred and thirty seven consecutive weeks. He's retiring at age forty one. When my love of tennis started, I was a bull kid in my hometown of Bozel. I used to watch the players with a sense of wonder. They were like giants to me, and I began to dream. My dreams led me to work harder, and I started to believe in myself. Federal play one

more event, the Labor Cup in London next week. John Stashward Bloomberg Sports Nathan Thanks John, SFP Futures now down thirty five points down, Futures down tundred forty two. Nastack Futures leading the declines this morning, down one hundred thirty four points. Seeing dollar strength this morning with the euro

below parody at point nine. Will check in on this market next with Michael Houston of CMC Bloomberg eleven three oh weather mostly sunny today with the upper seventies sunshine to start the weekend with a high near eighty Tomorrow might hit ninety by Sunday. Right now fifty eight in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Tape, He's a Bloomberg Business Flash

and I'm Karen Moscow. And equities are extending to clins, with an index of global stocks on track for the worst week since June, while engage of the dollar sourced to a fresh record reflecting vets for outside Federal Reserve interest rate hikes. US stuck index futures are dropping, suggesting the cell off that drove the SNP five hundred to its lowest clothes in about two months yesterday isn't over yet. We checked the markets every fifteen minutes throughout the trading

day on Bloomberg. Right now, US in P futures are done about thirty seven points down, futures down two hundred fifty four, and NASTAC futures down one hundred thirty seven. The decks in Germany's down one point seven percent, the ten year treasury down to thirty seconds you three point four or five percent they yield on the two year

three point eight nine percent. Nim X screwde oil is little change at eighty five dollar seventeen cents of barrel comexs golled down four tenths per cent or seven dollars thirty cents at seventeen sixty announce or make that sixteen seventy announced Rather the euro point zero against the dollar British found one point one three seven seven and the yen one forty three point to five. And look at a big coin this morning, down half percent at nineteen thousand,

seven hundred fifty dollars as of Bloomberg Business Flash. Now. Here's Michael Barr with more on what's going on around the world. Munchael, Good morning, Good morning Karen. In the UK, preparations are ongoing for the funeral of Queen Elizabeth the second next week me while thousands continue to wait for hours to pay their respects to the Queen is she

lies in state in Westminster Home. Coverage of Monday's funeral can be heard live on Bloomberg Radio starting at six am Wall Street Time, a federal judge as a pointed veteran New York jurist Raymond Derry to serve as a special Master in the criminal investigation into the presence of classified documents at Donald Trump's Florida home. In baseball, the Mets beat the Pirates seven one, The A's Lost Farrisday

Night Football, the Chiefs beat the Chargers. Four. Global News twenty four hours a day on are and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. Nathan all right, Michael, thank you. It is five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Want to go right now to Michael Howson joining his live chief market Analyst

at CMC Markets. Michael, it is rough out there this morning. Does the gloom match what we're seeing in this economy? Yeah? I think think that's really the question that an awful lot of investors will be wrestling with as we look towards today's US open. I think if we look back at what FedEx said at the end of its last fiscal year, they were actually quite optimistic that despite rising costs, operating margins would improve because they upgraded their four year

profit guidance of three. Here we are three months later and they pulled it completely. Now that suggests to me that something drastic has happened in the last three months. And certainly, I think if you look at the statement that they released last night, they've been caught out quite significantly. But really should we be surprised by this when we look at what energy prices have been doing in Europe,

what's been happening in China. Um, it seems to me that obviously FedEx overstated their optimism in June and now are really cutting back quite significantly, and that really, I think should be worrying for an awful lot of investors. And I think as we head towards the end of the quarter and we looked towards October and the upcoming earning season, I think we could see quite a few more downgrades, and I think that's what we're seeing being

reflected in the price action. How significant do you think those downgrades could be, Michael ah Well, as significant as probably the FedEx one that we've seen today. I mean, we're going to have to wait two or three weeks, but I don't think the market is going to wait for that. Um. I think the fact that Apple didn't increase its prices was telling. I think they feel that perhaps they won't be able to pass on those price increases. Having said that, I mean, Apple is a cash machine.

They will still make plenty of profit. The bigger question will be will it be as much as people think? I mean, not for nothing. Is Apple not given any guidance for the past two or three years. So I think whatever the markets pricing market, Apple will comfortably beat. But I think it's going to be a very difficult six months UM for um con, humors and probably investors as well. Does this kind of market reaction we're seeing to the commentary that we're getting from some of these

major companies have any effect on the Federal Reserve? Does it steers central bankers away from going for a jumbo? Says red hikes something bigger than seventy five basis points to try to achieve that soft landing that investors are looking for. Yeah, I don't think we're going to get a soft landing. I think it became much less likely. I don't think the Federal Reserve will do a hundred basis points next week. My base case has always been seventy five. I think when I spoke to you guys

earlier this month, my base case was seventy five. That hasn't changed. What might change is what comes after that. So we could get fifty basis points perhaps in November, and potentially another fifty basis points in December. Ultimately, I think the Federal Reserve has it within its purview to manage its message so that it so that it doesn't unduly free the markets out. But I think seventy five

basis points is a done deal. I don't think and these this this prediction could come back and hold me. I don't think I'll do our last minute here, Michael. The FED has said that it's gonna keep rates elevated for quite some time. What do you think it's gonna take for the Fed to pivot toward pulling back on rate hikes? Do you think it's I mean, how long

do you think A while is going to be? I think they'll stop hiking the end of this year, and then we're going to have to get used to probably elevated rates for the next twelve to eighteen months before fed even considers a pivot. I think we could get a right cut if we get a recession that turns into a depression. Hopefully we won't get to that now. Indeed, thanks for this, Michael, I was always good to get your thoughts UH this morning. Michael Houston is the chief

market analyst at CMC Markets. As we look at the market, it's UH pretty much read across the board around the world. Just thinking about what FedEx had to say about its outlook, pulling its outlook after raising it just three months ago. As Michael mentioned, it seems to be pervading into the

market this morning. SMP futures are down thirty five points right now, DAL futures down two thirty nine and NASDAC futures leading the declines in a US futures contracts down a hundred thirty two points, a drop of one point one percent. Germany's DAX is down one point six percent, the CACK in Paris is lower by one point four percent. The tenure treasuries down three thirty seconds, yield three point

four six percent. The yield on the two year three point eight nine uh dimex scrude little changed up about a tenth percent at eighty five dollars nineteen cents. The Beryl comex gold is down a third percent or five dollar sixty cents sixteen seventy seventy ounce Euro just below parody against the dollar at point nine nine seven two, and Bitcoin below twenty thousand at nineteen thousand, seven hundred

fifty dollars. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather mostly sunny, upper seventies today, partly the mostly sunny with a high near eighty Tomorrow sun shines of afternoon cloud Sunday with highs in the upper eighties to

around ninety. Right now prodcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixteen to the Country, Sirius XM chant A one nineteen and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm kerin Moscow. We're just about

four hours away from the open of US trading. Let's catch you up to date on the news. You need to know what the sour. The stock slide is deepening as we close out one of the worst trading weeks since June. S and P futures are down about thirty seven points this morning, and Lisa Erickson had a public markets with US Bank Wealth Management says that shoppy nous

is likely to continue. We've got the stock market and what I would call no man's land, and it's really because we are in a horse race to see how quickly inflation can come down and to what level. Lisa Ericson with US Bank says she expects the FED to keep tightening until inflation slows the meantime. Karen we get September sentiment numbers from the University of Michigan today, capping a busy week of data highlighted by a hotter than

expected inflation report. Iniquity markets this morning, FedEx is the name on the move. Shares are down more than ninetent this morning after the company announced preliminary results for the quarter that missed expectations. Bloomberg's Ed Ludlow says macro economic weakness is weighing on FedEx. This is a company that's involved on cost production measures, right, and what they're saying is that the global slowdown in volume is outpacing, that

they're monitoring closely fuel prices. But what they're saying is we can't keep up, Bloomberg said. Ludlow says FedEx expects financial pressures to continue in the short term, if not longer, and another stock falling in the pre market Care and is General Electric. We get the details on why from Bloomberg's Doug Prisner, g CFO Carolina died Back help sited persistent constraints and obtaining parts from suppliers. Happa also said those snags are pushing plan shipments further out on GES

delivery timeline. The supply chain strain is also putting pressure on free cash flow. Happa said the company now expects it to be in line with or slightly better than the roughly one D sixty two million dollars g E generated in Q two in New York. I'm Doug Krisner, Bloomberg Daybreak. Okay, Doug thank you in this morning. Shoes

of ge are down four percent. Well, the rails are still on the move this morning, Nathan with a tentative labor agreement in place between freight rail companies and unions that a versus strap. Stick with us for full coverage today, We're speaking with Labor Secretary Marty Walsh live at newn Eastern on Bloomberg Radio and Television. And the geopolitical note today brings us to that meeting between Russian President Jijin Ping and I'm sorry, but Russian President Vladimir Putin In

Chinese leader hi Jinping. Putin told she he understands Beijing's questions and concerns about his invasion of Ukraine. The two met in their first in person meeting since Russia's invasion. SMP Future is right now down thirty eight points, Style Futures down two dred sixty three, straight ahead, your latest local headlines and a check of sports. This is Bloomberg and Wall Street fifty eight degrees in Central Park. Still dealing with that truck fire in the South. Founder of

Jersey Turnpike truck Lanes. Michael Barr has more on what's going on in New York and around the world. Michael, thank you very much, Nathan. New York Mayor Eric Adam says he does not make a difference whether you came here on the Mayflower or on a bus. You deserve

the dignity and respect this city continues to show. Mayor Adams spoke on touring an asylum seeker resource Navigation center and we are not going to be like those municipalities and state where we fly people to market's venue, where we put people on buses and have them failed to get the basic items they need. This is the crisis. Meanwhile, New York is reassessing the city's right to shelter practice following an influx more than eleven thousand asylum seekers who

have been bussed from Texas. That's according to Mayor Adams Chief Council, who says the city is nearing a breaking point with asylum seekers and the homeless. In the UK, thousands are waiting in line to pay their respects to the country's longest serving monarch. Let's go to London and get the latest with Bloomberg's human potts. The line to walk past the Queen's Coffee now stretches to five miles

along the river Thames. Many thousands have already had the chance to pay their respects as Queen Elizabeth lies in state at the Palace of Westminster ahead of Monday his funeral, but today a warning from the authorities that the queue may need to be closed or at least paused, if it reaches capacity. The current wait time is already estimated

at fourteen hours. In London immu and part Sploomberg day Break, you can hear live coverage of the Queen's funeral on Monday, starting at six am Wall Street Time right here on Bloomberg Radio. President Biden is set to meet today with the families of w NBA star Brittney Grinder and US Marine veteran Paul Wheeland, both of whom are imprisoned in Russia. Biden spoke by phone in July with Grinder's wife and with Wheeland's sister, but both families have since requested in

person meetings. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan. Thanks Michael five on Wall Street Time the Bloomberg Sports Update with John stash Hour. Thanks Nathan. Much needed to win for the Mets after seven losses in eleven games. Swept by the Cubs, Mets took it out on the Pirates at City Field. Up

six one fourth inning, they won seven to one. Daniel Vogel back the ex Pirate had two HS, three rb i s, two run homer for Francisco Thendoor fifteenth win for Carlos Carrasco, and the Mets now lead Atlanta by one game. Meanwhile, Sandy Alderson announced he's stepping down as the Mets team president. Alders in his seventy four a cancer survivor. He left the team once before, but was brought back by Steve Cohen when he bought the Mets.

Alderson will remain as an advisor. Yankees play tonight in Milwaukee. Tampa Baby Toronto eleven to nothing. The Raised on Roberto Clemente Day had an unprecedented all Latin lineup. They trailed the Yanks by seven games. The Blue Jays trail by six and a half NFL for the first time ever on Amazon and a good one in the a f C West in Kansas City. The Chiefs came from ten points down to the fourth quarter beat the Chargers twenty seven twenty four. They snapped the tie with a ninety

nine yard pick six. The Giants, hoping to have rookie linebacker Cavon Thibodeau Sunday against Carolina, missed the o whenever the knee injury. The Giants took Pivota with the fifth pick of the draft. Roger Federer will play for Team Europe and the Labor Cup next week in London, and then retire from tennis at the age of what he wants. This is a bit of street decision because I will miss everything the tour has given me. But at the same time, there's so much to celebrate. I consider myself

one of the most fortunate people on Earth. I was given a special talent to play tennis, and I did it at a level that I never imagined for much longer than I ever thought possible, better or always enormously popular. One twenty Grand Slams, just behind Rafa, Nadal and Novak joke Off. It's still certainly in the conversation for Greeds played it ever John Sash Bloomberg Sports Nathan all right, John, thank you it is five thirty seven on Wall Street

time for the Tri State Business Report. Here's Bloomberg Scott Car. Nearly all of New York City's retail sectors have rebounded back to pre pandemic levels of ownership and activity. That's according to executive managing director at Cushman and Wakefield Stephen souten Dyke, who estimates they've handled about sixty retail deals this year, mostly what he calls the driving force of

food and beverage deals. LPGA Commissioner Molly Marcos Salmon will give a ted style presentation on the last day of the New Jersey Women Business Leaders Forum later this month. This year's forums being held at Caesar's in Atlantic City. A prominent Waterbury, Connecticut based family business recently paid four point eight million for the sixteen acre Colonial Plaza on Thomaston Avenue in the city, with promises to rehabilitate it

into a thriving retail and commercial center. Officials with Cornerstone real detail of the Hartford Business Journal. The family was inspired to buy the long struggling property given its prime location and recent investment in development by the city. That's the Bloomberg Christ State Business Report. I'm Scott Carr. Thanks Scott. 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 Potaskan K and X in Los Angeles. Lists We're talking about the plunge of imports moving through the giant porte of l A. I'm Cornitanaho on kat r H in Houston. Popular a d H D drug adderall was experiencing shortages across the US. I'm Gina Servetti and for w b B, I'm in Chicago.

I'm talking about the finger pointing between the f A A and the airlines when it comes to who's responsible for all of the airline delays this year. I'm Stephen Carroll on Bloomberg d A B Digital Radio in London. We've been reporting on the pans slumping to its lowest level since after retail sales figures for August disappointed. I'm

Scott Carr on w d c H in Washington. I'm reporting the owners of Natz Park will have to beat a Zony deadline to keep operating the park, and those are some of the stories are twenty hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by

the Bloomberg Editorial Board. Since Sha launched its invasion of Ukraine in February, China has consistently refused to criticize President Vladimir Putin. Instead, it has amplified Russian misinformation and bought huge quantities of Russian oil and gas on the cheap. The West should ensure Chinese President jij and Ping understands

the price of allying too closely with Putin. If the US and Chinese leaders meet as expected at the G twenty summit in November, Biden should stress the growing Chinese investments in Russia could spur new penalties. The U s should also strengthen ties with countries threatened by a Sino Russian alliance, including India and Vietnam. Such moves won't end China and Russia's partnership, but with commitment, patience, and unity of purpose, the US and its allies can limit both

countries ability to threaten the global order. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or opie I n go on the Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials every weekday at this time. Terminal customers can read more at O P I n go. This is Bloomberg Bloomberg eleven three oh other.

Sunshine to when the week highs in the upper seventies will get to near eighty tomorrow under a party to mostly sunny sky sunshine for Sunday's afternoon clouds warmer with highs near ninety Right now fifty eight in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Karen Moscow.

Equity is extending to clients with an index of global stocks on track for the worst week since June, while I gat to the dollars wars to a fresh record, reflecting vets for outsize Federal Reserve interest rate hikes. We checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and p future is down thirty nine points this morning. Down futures down two hundred seventy four and nastack futures down. On the decks in Germany's down

one point nine percent. Ten your treasury down four thirty seconds, You're three point four six percent. They yield on the two year three point eight nine percent. NI make screwed oil little change at eighty five dollars four cents of barrel co makes goal down half percent or eight dollars sixty cents is sixteen sixty eight ninety announced the euro point seven five against the dollar, British found one point one three h two and the n one forty three

point three two. And Bitcoin this morning is down half percent in nineteen thousand, seven hundred fifty dollars as a Bloomberg Business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much. Karen. In the UK, preparations are ongoing for the funeral of Queen Elizabeth the second next week. Meanwhile, thousands continue to wait hours in long lines at Webminster Hall to pay their respects to the Queen as she lies in state.

The government said it was temporarily stopping people from joining the line because it has reached capacity. You can hear the Queen's funeral on Monday live on Bloomberg Radio starting at six a on Wall Street Time. A third party arbiter has been named by a federal judge to the FBI Trump document seizure case. Semi retired Judge Raymond Deerry has a deadline of November to finish his review of the documents. In baseball, the Mets beat the Pirate A

seven one. The A's lost. Thursday Night Football, the Chiefs beat the Chargers. Twenty seven twenty four Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. Michael barn This is Bloomberg. Nathan Okay, Michael. Thanks, It's nine on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak.

As we continue to assess this rough market this morning, we are joined by Audia level, senior US equity strategist at UBS. Nadia. It's great to speak with you again. It's interesting earlier this week when we got the hotter than expected inflation, we saw a big sell off. Now we're hearing gloomy warnings from the likes of FedEx in general Electric and seeing stocks sell off once again. I wonder what you make of this market reaction. Is it warranted? It is warranted. I mean, this is a market that

is going to remain chopping under pressure. It's a market that is disgusting and more restrictive monetary policy. And so this is sort of the monetary policy that we haven't seen in decades, and so the market will continue to be going through this painful process as the economy UM digestive more restrictive monetary policy. You know, of course there's a lot, but as you notice, we're starting to see some of those crociform companies you know, on the house

and side. We have this negative pre announcement and guidance full. So we suck that slowdown to broaden out and come and quarters and really put downward pressure on earn. His estimate UM will still need to come down back to Earth and even below. So we're looking for a more range bound market, no roll upside, But I would say that doesn't necessarily mean that there aren't things to do

the position in such a market. Now from a relative standpoint, we continue like the defensive sectors like healthcare and consumer staples, and we continue to see opportunities within energy as we think that all prices will move higher. Yet, so if the market remains range bound, you're not thinking that we see uh, further testing perhaps of the June low. I mean, the SNP has got a way to go before it gets there. Yeah, it's possible that we could see a

retest of the June low. And just given the fact that we do think that the earnest estimates still need to come down. And you know, if we see you next week while we're here from the FED, we are in the seventi five basis points camp, but we can't roll out a hundred basis points either. And we'll get the dot plus as well as a summary of economic productions next weekend, so that will give us some clues on the path, the hiking pathfor and forward and with

the termalment will event really end up. And so there is risks to the soundside from the to the market, depending on where the feed ends up and what impact it ultimately has on the ecomomy. What are you looking at that could help you determine whether we do see seventy five or a hundred from the Fed next week?

What data points are you looking at? Were? Of course, you know, we got the hot CPI this past week, and so um that puts upward risk um to a hundred basis points, you know, but I would say we also watched in long term inflation expectations. You know, that's what caused the FAT to pivot back in June. You know, more recently we saw from the New York and Atlanta and Michigan survey all showing a downtake in expectations. But we'll get another Michigan survey later this morning, so you know,

we can't completely rule out a hundred basis points. I mean, Powell kind of left the door open for that um as well. What's the impact of these rising short term yields that we're seeing this deep inversion in the yield curve on stocks? You know, I think that you know, when norm really when the curve inverts two tens or you know, it's the three month ten year which hasn't inverted yet. Um, there's concerns about procession, and so if we do end up in our recession, that likely means

that the earnest turns negative. Um, you know, recession, and the question remains like how much negative do they get? Right now, we're in that camp of thinking that we get a selfish landing, and so we're looking for a low sign digits earnest growth for next year. But again that you know, as monetary policy moves growther into restrictive territory, the risk of recession does increase and that will likely need that you could see potentially negative earners in twenty

three if we end up in a recession. I'm looking a head certainly to that FED decision coming up in just a few days on Wednesday. Thanks for this, Naughty again, great speaking with you this morning. Naughtia level senior US equity strategist at UB Yes, Karen Heavin, thank you. It is five fifty three on Wall Street at this time. Now for the Bloomberg a Lot report. It has brought to you buy American Arbitration Association business disputes are inevitable.

Brazil faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a dr dot org. Let's say to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, the Federal Trade Commission is looking into so called dark patterns, digital design practices that businesses can deploy to manipulate consumer behavior and possibly compromise privacy. Problems facing gig workers are also

on the FTC's radar. The Commission will crack down on pay and our deception, unfair contract terms, and anti competitive wage fixing. The Ohio Supreme Court ruled that police can keep a thirty one dollar pickup truck seized from a man who was arrested for drunk driving. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff Banks. Now another legal

story we're watching. In a new book, the top federal prosecutor in Manhattan for half of Donald Trump's presidency says he was repeatedly pressured by Justice Department officials he used his office to help them politically demanding that Trump's critics be prosecuted, and the Chairman of the Senate Judiciary Committee,

Dick Durbin says, we'll investigate the allegations. In the book by Jeffrey Burman, the former U S Attorney for the Southern District of New York whose outstair raised questions about political interference from her Bloomberg, jun Grosso speaks to William Banks, the professor at Syracuse University College of Law. Burman writes, in this book, throughout my tenure as U S attorney, Trump's Justice Department kept demanding that I used my office to aid them politically, and I kept declining in ways

just tactful enough to keep me from being fired. I walked this tight rope for two and a half years. Should he have been walking this tight rope or should he have exposed this or quit? Well? I think you know it was highly inappropriate the pressure that was brought to bear on Berman by the what he calls main Justice in Washington and by the White House. But it was not unlawful. The norms Involveteer that we respect the independence of prosecutors, of course, and of U S attorneys

in the federal system. But Berman, of course, as a Republican, he was appointed by President Trump. He thought that it would be a traditional appointment where he'd be allowed to do the cases and to arrive at just prosecutions using his judgment, and when that came to be less and less often in the case, I think, as he says,

he was walking a tight rope, it's highly inappropriate. And as we know, eventually he was fired by the president, and the President has the legal discretion to be able to fire a U. S. Attorney just on a whim, as he so often did. Senator Dick Durbin of the Senate Judiciary Committee said, if accurate, Mr Berman's claims indicate multiple instances of political interference in the department's investigative and

prosecutorial decisions. As you say, it's not against the law, it's just custom and a set of very important, longstanding norms. If they cross the line into illegality if it happens to obstruct justice in a given case. So if the effect of interference from main Justice or from the White House on the U. S. Attorney is to obstruct the prosecution in a substantive way, then that's a law violation.

That's obstruction of justice, and the course we're considering obstruction in every kind of way now involving for President Trump, so he's no stranger to that. And as William Banks, a professor at Syracuse University College of Law, speaking with Bloombery student Grosso. Catch more of that interview plus analysis of the late legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com

slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b law Go. Futures this morning are falling. SMB Future is down about thirty five points down, features down two hundred thirty eight and NASDAC features down one twenty five. The ten year Treasury is down four thirty seconds, the yell three point four six percent, and the yield on the two year is at three point nine zero percent.

Nimex Screde oil is it will change at eighty five dollar six cents of barrel, and comex gold is down about six tenths of upper cent. Still ahead on Bloomberg Daybreak and check on the business headlines and all the news you need to start your day, and this is Bloomberg.