Bloomberg Daybreak: September 16, 2022 - Hour 2 (Radio)

Plus preparations continue for Queen Elizabeth's funeral on Monday. I'm Michael bar More Ahead, I'm John stash owd Sports, The Met's Meat, the Pirates, The Yankees visit Milwaukee Tonight Thursday Night Football, the Jeans beat the Charger. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Trio, New York, Bloomberg Washington, d C, Bloomberg one six one, Boston, Bloomberg nine six, San Francisco, Sirius x M one nineteen and around the world on Bloomberg Radio Dot Come and via

the Bloomberg Business Act. Good morning, I'm Nathan Higer, and I'm Karen, Moscow and US Dock Index futures are lower this morning. 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 SMP futures down about thirty seven points down, futures down two D fifty two, and NASDAG futures down one D thirty seven, and the tenure treasury down four thirty seconds, the yield three point

four six percent. They yield on the two year at three point nine zero percent. Nathan Well, Karen, 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, so we're stocks in Asia. Two year treasury yields are climbing to their highest level in fifteen years, deepening a curve inversion that

is seen as a recession signal. But Brent Shooty, chief investment strategist with Northwestern Mutual Things, we may be seeing a bottom. Sentiment is already awful. People have sold already throwing the fifty present retraction 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 tunew French Shooty with Northwestern Mutual says stocks usually hit a bottom when inflation peaks Well. Nathan Investors get another key economic report

to digest before we headed to the weekend. At Tenneham Wall Street time, we get September sentiment numbers from the University of Michigan and Bloomberg's 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 a busy week of data highlighted by two days hotter than expected inflation report. Traders

now turn 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 percent. Lizzie 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 this stage in the game Powell wants to be seen as is 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 when it comes to market volatility. Liza and Saunders of Charles Schwab says high speed traders may be driving some of the wild swings we've seen this week well. In this more axequity action, Nathan Shares a fed exor down nineteen and a half

percent in early trading. The company said preliminary results for the quarter fell short of expectations. We get the story from Bloomberg. Charlie Pellett, The Courier said adjusted earnings for the fiscal first water were three forty four share, well short of the five ten average about of analysts. 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, thanks. Another stock following this morning is General Electric. Those shares down two percent in early trading. G S finance chief is warning supply chain challenges away in its third quarter performance.

The rails are still on the move this morning, Nathan. A tentative labor agreement is in place between freight rail companies and unions that averts a strike. President Biden reportedly told both sides failure was not an option. Bloomberg political contributor Rick Davis said, 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. Great Davis spoke with our Washington corresponded Joe Matthew on Bloomberg Sound On. Stay tuned for more on the tentative deal when we speak live with 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, Karen, there's news on the Justice Department's legal battle with former President Trump. A special Master has been named to review documents sees from our lago while the judges denied a request from the d o J to keep using the documents in their probe. Bloomberg's Amy Morris has details from our news

room 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 thousand 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 Deary until November thirty to complete his review, and the court ordered Trump to cover those costs. In Washington, I'm anymore as Bloomberg daybreak right Amy, thank you meantime in the Middle East, it's a meeting of two embattled 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 Bloomberry 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 Bloomberry Stephen Angle says it was the first in person talks between presidents Putin and she since the start of the war in Ukraine. U S and P futures are now down thirty eight points. Stown futures down two undred sixty two, NASDAC futures of lower

by a hundred forty two points. The tenure treasury is down five thirty seconds yield three point four six nimex crewed down four tenths percent at eighty four dollars seventy nine cents of barrel. Straight ahead, local headlines and a check of sports. This is Bloomberg six oh seven on Wall Street, fifty seven degrees in Central Park. We're still dealing with that truck firing the southbound of Jersey Turnpike

truck lanes. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Michael, thank you very much. Nathan, New York is reassessing the city's right to shelter practice following an influx of more than eleven thousand migrants who have been bussed from Texas. That's according to Mayor Eric Adams, chief concil, who says the city is nearing a breaking point with asylum seekers and the homeless. Council Brendan McGuire

says 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. 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. Mayor Adams and Council McGuire made their comments while touring an asylum seeker Resource Navigation center. 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 and as nightly addressed to the nation. The grave was found close to Ilium in the Kharkiv region. Rehearsals are underway as hundreds of soldiers and bagpipers are practicing for Queen Elizabeth the Second's funeral on Monday. Meanwhile, people are being told not to join in the line to view the queen's coffin after a surge in numbers.

British officials said this morning that the organized line was at capacity and no one will be allowed to join it for at least six hours. Thousands have been awaiting hours in long lines to pay their respects to the Queen as she lies in state at Westminster Hall, including this woman. We were talking before we came, do we

curn't see? Do we file? But when we insisted that, she didn't know what to do, and we both slipped to one another and we both just about and then it's just that really overwhelming feeling, but you can explain. 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 Fiona in the Caribbean.

Forecasters say it is on track to move through the Leland Islands today as it heads toward the Virgin Islands and Puerto Rico. Global News twenty four hours a day on airand on Bloomberg quick Take, powered by more than d journalists and analysts more in a hundred twenty countries. I'm Michael bar This is Bloomberg. Nathan, Thanks Michael. Coming up to six ten on Wall Street. Time for the

Bloomberg Sports update. Here's John Stenshower. Thanks Nathan. All around Baseball, it was Roberto Clemente Day, nearly fifty years after his death in the plane crash. The ceremony took place in New York to Tampa. Bay Rays started all Latin players,

first time that's ever happened in City field. The Mets all wore Clemente's number twenty one day beat the Pirates Clemente's team seven to one to snap at three game moving speak, Daniel Vogelback, who the Mets acquired from Pittsburgh, had two hits, three rb i s fifteen twin for Carlos Carrasco. The Mets now lead Atlanta by one game. The Yankees left Frankie Montas on the Mount tonight in Milwaukee. He's made seven starts with the Yanks. He's only one

once Thursday Night Football kick him off. Week two, the Chargers led in Kansas City by ten. The Chiefs stored the next twenty, including a ninety nine yard interception returned by Jalen Watson with ten and a half minutes ago. That's not the tie case won twenty seven twenty four

costly injury for Seattle of Stars safety Jamal Adams. The X yet done for the year torn quad w NBA Finals Annecticut Son stayed a lot outscored Las Vegas twenty eight to seven and the fourth quarter and one by twenty nine, and the Ace is still in the best of five series to one. Roger Federer third on the list of most Grand Slams one with twenties, been passed by both Ralph Nadal and no back joke of it, but Federer obviously had a brilliant career, ract number one

for two hundred and thirty seven consecutive weeks. He's retiring at age started. I was a bull kid in my hometown of Bosl. 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. Stature Bloomberg sports okay, John, thank you right now. S

and P futures are lower by thirty eight points. South futures down two to sixty six NASAC futures on the decline by a hundred forty three points in the tenure treasuries down five thirty seconds, the yield three point four seven percent. This is Bloomberg Bloomberg eleven three oh weather sunshine today with him for seventies, will hit eighty tomorrow under partly mostly sunny sky sunshine for Sunday with some afternoon clouds coming in highs in the upper eighties. 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. And equities are extending declines, with an index of global stocks on track for the worst week since June. Will engage of the dollar stores to a fresh record, reflecting vets for

outsized federal reserved interest rate hikes. US futures are dropping, suggesting to sell off that drove the SNP five hundred to its lowest clothes in about two months. Yesterday is not over yet. We checked the markets every fifteen minutes throughout the trail eating day on Bloomberg. As in p future is down thirty nine points this morning, down futures down two hundred sixty seven and NASDAC futures down one

d forty seven. The decks in Germany's down one point six percent, the ten year treasury down four thirty seconds. He'll three point four six percent yield on the two year three point eight nine percent. Ninemex s hered oil is up tenth of a percent, or nine cents at eighty five dollars. Nineteen cents of barrel comes called down half percent or nine dollars at sixteen sixty eight thirty announced.

The euro point seven one against the dollar, British found one point one three seven eight, the n one forty three point to eight. And look at a bit coin, it's down half percent at nineteen thousand, seven hundred fifty dollars. That's a Bloomberg business flashdown. 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, people are being told not to join the line to view the queen's golfin after a surge in numbers. British officials said this morning that the organized line was at capacity and no one will be allowed to join it for at least six hours. Coverage of Monday's funeral can be heard live on Bloomberg Radio starting at six am

Wall Street Time. The federal Judge as appointed 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 Matt's beat the Pirate at seven one. The A's lost. Thursday Night football, the Chiefs beat the Chargers. Four 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. How Michael Barr and this is Bloomberg. Nathan all right, Michael, Thanks at six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. And as we continue the march to the next FED decision coming up on Wednesday, we keep following the data and we get another read today that could tell us more about inflation expectations. Bloomberg Economics and Policy correspondent Michael McKee is with us live this

morning from our Interactive Brokers studios. Mike, there's been so much attention, of course, on this week's hotter than expected inflation print. How much is University of Michigan sentiment gonna matter for this Fed? Well, it's not gonna matter for this coming week's FED meeting because the Fed's pretty much told us they're gonna do seventy and the surprise factor from that June reading at the in the Michigan numbers that caused them to go seventy five and the first

place has gone so um. They're gonna look at it and uh, and they'll incorporate it into their thinking. But we've already had. The New York Fed does a similar survey on expectations with consumers that came out earlier this week and showed that consumer expectations for inflation had fallen.

And that is probably gonna be the case with Michigan because gas prices have been falling for two months now, and the Michigan survey would have been all but taken before the the CPI came out, so, uh, it probably isn't going to have as big an effect as it

had back in June. Part of what I think I hear you saying here, Mike, is that because gas prices are so much a part of consumer inflation expectations, that maybe this doesn't matter as much for the Fed because it's focused so much on the inflation factors that are more under its control, the core of piece of inflation. Yes, the Fed is knows it can't do anything about energy prices other than to weaken the overall economy, So people drive a little bit less, which is going to be

a side effect of their raising rates. Uh. The Michigan survey is highly responsive to gasoline prices into stock market moves, where the Conference Board numbers are much more reactive to the state of the labor market. And the economists who follow this they know that, so they do a little

bit of discounting when we get the figures. Now, since you mentioned market moves, we're seeing plenty of those this morning to the downside, and we saw it again of course after we got that cp I read on Tuesday. Does that make any difference for the Federal Reserve and its decision making to see the expectations in the market. I'm already pricing in the possibility of outsized rate moves. Does that give the Fed some kind of room to

consider taking a pause? It would give them room to consider taking not a pause, but to go higher if they felt they wanted to do a hundred basis points. Now most people don't think they're gonna do that. It would it would be uncharted territory for the markets, and we're not sure how the markets would react. Now. The Fed in a sense doesn't care about the stock market

as long as it's functioning. If you can make a trade and you can deliver your securities and you can get your money back, then the Fed is fine with that, even if the market is going down. If it goes down too fast or it starts to seize up, then the Fed would have some concerns. But at this point everything seems to be working fine. Makes you you've seen these numbers, It makes you want to go back to

bed instead of really work today. But um, it's not going to bother the Fed too much, and not that it matters since so many of us working from home still anyway, But in our last minute, here Mike. I wonder if the strong retail sales numbers we got yesterday complicates the Fed's mansion, does it. Well, they weren't all that strong, because you have to remember they were just you have to adjust those for inflation. So a lot of the spending that we saw is UH is taken

away by that. We're buying less stuff, just paying more money for it. The question is do we buy are we spending more on services? We've seen a switch to more service oriented spending, and we did see a big rising in bars and restaurants. That's the only services category in the retail sales report. So at the end of the month we'll get a report that incorporates both goods and services and we'll see But at this point that the retail sales number sure of tell the Fed we're

having an effect. We're slowing the economy alright. Bloomberg's Michael McKee are economics and policy correspondent. As we UH keep a very close eye on the data ahead of that Wednesday FED decision. University of Michigan index comes out ten am Wall Street Time. One more factor for the FED to consider as it looks to UH possibly raised by

seventy five basis points. Markets holding out the possibility maybe a hundred, but as Mike was mentioning, the Fed is pretty much telegraphed that seventy five is in the books. Here we get that decision. Of course, Wednesday afternoon, we'll have full coverage for you here on Bloomberg Radio. SMP futures right now down thirty four points, Staff futures down two hundred forty, Nasdaq futures are lower by a hundred thirty two points, and the tenure Treasury is down three

thirty seconds. The yield three point four six percent, and the yield on the two year right now three point eight nine percent. Your list to Bloomberg Daybreak, Bloomberg eleven three oh weather, sunshine, highs near eighty today, We'll get up to around eighty tomorrow as well, some afternoon clouds on an otherwise sunny Sunday with highest close to ninety right now fifty eight degrees in Central Park. Broadcasting live

from the Bloomberg Interactive Broker Studio in New York. Bloomberg eloving three on to Washington, d C, Bloomberg nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine six to the country, Sirius XM chto one nineteen and around the globe the Bloomberg Business apt in Bloomberg Radio dot com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. Here just about three hours away from

the open of US trading. Time for the five things you need to know to start your day, Brought to you by I v k R Investment Advisors switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at i v k R dot com slash r I A up First be A stock slide is deepening as we close out one of the worst trading weeks since June.

SNP futures are lower down thirty five points, and Lisa Ericson, had of public markets with US Bank Wealth Management, says that choppiness 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. Meantime, we get September sentiment numbers from the University of Michigan At ten am Wall Street time the inequity markets Karen, fed X is on the move lower. The shares are down twenty percent after the company announced preliminary results for the court of the missed expectations. Bloomberg said, Ludlow says macro weakness is

weighing on FedEx. This is a company that's invoked on cost reduction 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. And Bloomberg said. Ludlow says FedEx expects financial pressures to continue. Another stock falling in the pre market Nathan is General Electric. We get the details on why from Bloomberg's dun Kristner g E CFO Carolina died Back

help cited persistent constraints and obtaining parts from suppliers. Happa also said those snags are pushing planned 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 ge generated in Q two in New York. I'm Doug Chrisner,

Bloomberg Daybreak. All right, Doug, thanks, and this morning, shares of ge or on four and a half percent and the rails are still on the move this morning, Karen, with a tenant of labor agreement in place between freight rail companies and unions that averts the strike. Stick with us for full coverage today, we speak with Labor Secretary Martie Walsh live at noon Eastern on Bloomberg Radio and Television.

And a geo political note today brings us to that meeting between Russian President of Vladimir Putin and Chinese leader she Jan Ping. Putin told she he understands Beijing's questions and concerns about his invasion of Ukraine. That you met in their first in person meeting since Russia invaded Ukraine. And that's the five things that you need to know

to start your day. Brought to you by Interactive Brokers and at six thirty three on Wall Street where fifty degrees in Central Park de Laser may and after an earlier accident on the eastbound cross Brox details coming up in traffic. First Michael Bark with what else is going on in New York and around the world. Good morning, Michael, Good morning, Nathan. New York Mayor Eric Adams says it does not make a difference whether you came here on the Mayflower or on a bus. You deserve the dignity

and respect. This to continues to show. Mayor Adams spoke while touring an asylum seeker Resource Navigation center, and we are not going to be like those municipalities and states when we fly people to Martha's Vinya where we put people on buses uh 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 of 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. The governors of Texas and Arizona have sent thousands of migrants on buses to New York, Chicago, and Washington in recent months. Florida government around the Santists signed off on sending two charter plane loads of migrants from Texas the Martha's Vineyard.

The Santists yesterday says it's about time others in the nation began helping overwhelmed border states, every community in America because should be sharing in the burdens and shouldn't all fall on a handful of red states. Meanwhile, critics called it in humane political theater. Massachusetts State Representative Dylan Fernandez is a Democrat whose district includes Martha's Vineyard. That's pure cowardless, there's nothing tough about using women and children for your

own political gain. Rhonda santis Is is a coward state representative. Fernandez spoke to a DC in the UK, Thousands are waiting in line to pay their respects to the country's longest serving monarch. However, the government has stopped adding people to the line for at least six hours. Authorities say it has reached capacity. Let's go to London and get the latest with Bloomberg human pots. 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's funeral. The current wait time is already estimated at fourteen hours in London Immune Parts Bud. You can hear live coverage of

the Queen's funeral on Monday starting at six am. Wall Street Time Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barn This is Bloomberg, Nathan, Thanks Michael. Almost six thirty six on Wall Street Time four of the Bloomberg Sports Update with John stash Our. All right, Nathan, much needed win for the Mets after seven losses in

eleven games. Just got swept by the Cubs. Bets took it out on the fire and s steady Field are up six to one on the fourth inning. They won seven one. Daniel Vogel back the ex pirate at two. It's three r BIS two on homer for Francisco Indoor, fifteenth win for Carlos Carrasco and the Mets now lean Atlanta by one game. Meanwhile, Sandy Alderson announced he's stepping down as the Mets team president. Alderson is 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 played tonight in Milwaukee Tampa Baby Toronto. He leveled the nut in the Rays on Roberto Clemente Day had an unprecedented all Latin

lineup by trailed the Yanks by seven games. The Boue Jays trail by six and a half NFL but 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 beat the Chargers twenty four. They snapped a fourth quarter tie with a ninety nine yard pick six. Giants. Hoping that rookie linebacker Cavan Thibodeau Sunday against Carolina, he missed the opener with a knee injury, Giants took Tibodau 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 one. This is a bitter Street decision because I will miss everything the tour has given me. But at the same time, there's so much to celebrate. I could sider 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, paddled injuries lately, feder always enormously popular, won twenty Grand Slams, just behind Rafa Ndland. Novak Djokovic still certainly in the converse Asian our greatest player ever. John Scure, 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. Lots of red this morning for Bloomberg Radio and TV Markets correspondent Creaty gooped at to help us sift through this morning. A lot of it, I guess Createy led by FedEx and it's new guidance. You know, this is such an interesting story. Nathan and I'm gonna spend the next three minutes nord ing out about it. Prepare yourself because this is so important. This is a global bell weather. And I say global because when you will have FedEx earnings, they tend to be

kind of this high frequency UM. I want to say, indicator of what the global economy is doing. Think about it. If you are a business that's doing a lot of work in different country, if you are shipping things, if you are buying things, if you have a lot of economic activity, like think about like the buzz the global economy is buzzing. That is good news, and that means you are going to be shipping a lot of things, moving things, transporting things. It means the economy is growing

um and functioning in a very healthy way. When you're not doing that, you kind of reverse engineered that logic. The idea here being that if FedEx is saying global shipment volume is actually declining, that means economic activity is declining. That means people are actually more cautious about the future. Now, Nathan, none of these themes are new. I think what's new here is the timing of it all, because so far we've seen a lot of these logistics companies actually excel

because the supply chain issues. To hear them say, well, hold on a second, we're actually feeling the heat now that new f d X is your taker for FedEx though shares down about after that guidance and basically they said, what we all know, macro headwinds. It's hitting them as specifically in China that's kind of been their big growth business with the COVID lockdowns, with decelerated imports, especially a lot of that idea of bringing a lot of manufacturing

back home. The outlook doesn't actually look great for international shipping on that front, so FDx giving that warning. But the ripple effect is crucial here because UPS is also down to the tune about seven percent this morning. UPS is also the ticker as well as company name and Nathan. This is important. FedEx and UPS are competitors, but FedEx try to kind of tackle supply chain issues early by saying we're going to hire more people and we're gonna

pay them more so we don't have any disruptions. UPS came out and said something a little bit different. They said, we're actually going to focus on smaller customers and then increase our prices so that we get profit margins and we don't have to deal with bulk shipping. We'll get the same volume, but just make more on the individual transactions.

And right now, the UPS strategy seems to be working better than FedEx is, even though FedEx had a better UH system when it came to the supply chain disruptions. I'm gonna throw one more at you in ten seconds. Amazon a m z N down two point six percent. We know it's also a major shipping company. A third of Amazon packages actually go through UPS, so they're all connected. If you've seen pain and FedEx, you're going to see

it in UPS and Amazon as well. Yeah, the focus on logistics this morning, on a morning after we got that tentative rail agreement that could implicate the picture as well. We're gonna talk about more about that actually what it took to get that at tentative deal struck with the Bloomberg Government's Emily Wilkins joining us from the nation's capital. As Bloomberg Daybreak continues, but ahead of the market open,

we are watching futures move lower. You're listening to Bloomberg Daybreak, Bloomberg eleven three oh weather, sunshine today, upper seventies will get to near eighty to start the weekend. Tomorrow could see ninety by Sunday, with afternoon clouds coming in Right now fifty eight degrees in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, Blo Bloomberg Business at and at Bloomberg Quick Jade, He's

a Bloomberg business lash and I'm Karen Moscow. Futures are falling this morning. We got to the first Word breaking news desk for today's morning call, and here's Bill Maloney Bell good morning and good morning, Karen. That's right. US features are under pressure. Although off their worst levels down future still down a hundred ninety seven points. Estipes dropped twenty nine, Nastik futures declined by a hundred and ten.

The US ten yeld at three point four seven percent, Gold is down three, oil is trading higher, and bitcoin

is down boy point two percent. Japan fell one point one percent overnight, while europ markets are also under pressure this morning, and back in the US on the economic front, it sent o'clock Michigan sentiment after the bell Ust night, FedEx withdrew its earnings forecast, setting worsening macro trends, shares a plunging in the pre market, and and O there's g E one that supply chain woes could weigh on performance.

Wrapping things up, Adobe was cut to equate at Barkley's, FedEx could neutral at JP Morgan and International Paper was cut to underperform over at Jefferies Live. From the first to Breaking News desk on Bill Maloney. Karen, all right, Bill, thanks to you here live breaking news over her Bloomberg type squawk on your terminal. Ascue you a w K and that's a Bloomberg business flash. And here's Michael Barr with more. I'm much going on around the world, Michael, Karen,

thank you very much. In the UK, preparations are ongoing for the funeral of Queen Elizabeth the second next week. Meanwhile, thousands continue to wait hours and long lines at Westminster Hall to pay their respects to the queen. Issue lines in state, but the government said it is 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 am all Street time. A third party arbiter has been named by a federal judge to the FBI Trump document seizure case. Semi retired judge Raymond Derry has a deadline of November to finish his review of the documents. In baseball, the Mets beat the Pirate at seven one. The A's lost Thursday Night Football,

The Chiefs beat the Chargers twenty twenty four. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael barn. This is Bloomberg. Karen all right, Michael bar thank you. It is sixty nine on Wall Street. Returned to news and science and technology now at the Bloomberg and j I. T. Stammer Report, And here's US making news and science, technology,

engineering and math. Apple is counting on upscale shoppers to make the latest iPhone a hit when it goes on sale today. The iPhone fourteen lineup reserves the best features for the high end pro models costing at least a thousand dollars, based on pre order sales that strategies working consumers have turned the most expensive new iPhone into the most popular version, and europe A new car sales rose for the first time in thirteen months. Registrations increased three

point four percent in August. Mercedes Benz was among the best performers with a rise. Still, the good news for automakers may not last long. Record inflation and an unprecedented energy crisis threatened to discourage buyers. And it's more, companies make the return to office push, many employees feel like they have no choice. According to a survey from productivity software company oh Slash, almost eight percent of remote workers think they would be five or if they said no

near really. Sixty percent of employers say they'd be okay with them resigning instead of returning to the office. And as a Bloomberg and j I T Stem report, Nathan all right, Karen, thank you. We are live from the Bloomberg Interactive Broker Studios where it's six fifty on Wall Street.

Time not to check what's going on in d C. Some of the top stories in our nation's capital included all nighter helped to seal a deal on the rails, President Biden accusing Republicans of using migrants as props, a retiring judge appointed to review documents, seizes at marl Lago, and the same sex marriage vote in the Senate apparently gonna have to wait till after the mid terms. Let's bring in Bloomberg Government reporter Emily Wilkins for more on

all these stories. Emily, good morning. So we're getting more details on just how involved the Biden administration was and getting this tentative labor agreement done with freight Rail. Yes, President Biden, there was actually, I think, as you mentioned, Nathan, this twenty hour marathon where they brought in union leaders, industry leaders, got Labor Secretary More Walsh involved. Apparently they ordered everyone a bunch of big ZiT trying to work

through this marathon session. And they also made sure that President Joe Biden was video chatted into the room that he continued to encourage things. I mean, this was a huge, huge, potential crisis for President Joe Biden. I mean, if these workers were to strike, if you were to see rail service cut off, supplies not getting into places they needed.

There was an estimated impact of two billion dollars on the economy, um if this would have gone through, And to be clear, it's still might We're now at this stage where we need the thousand workers UH a part of the twelve unions to actually agree to what was hashed out between the industry leaders and the union leaders, and there's some indication that they might not do that. I mean, they wanted to have six days that wasn't

granted to them. They have a little more flexibility now if they need to take an absence for medical reasons, But there are a lot of concerns that do remain um and at the same time, right now things seem to be in favor of the workers due to labor shortages. We've seen a lot of successful unions make their cases gain footing in a variety of industries. So I think this is something we're still going to have to watch

to see exactly how this deal shapes up. But there's also a sense that because President Biden has been so pro union, pro labor throughout his presidency, during his candidacy even that he does have influence within this community and will be able to find ways to keep things running. Oh, we did see that sort of victory lap yesterday at the White House Rose Garden with the President congratulating and

thanking the negotiators. Is there a risk here that because we are now in this extended cooling off period, that he may have taken this victory lap a little too soon. I mean, I think for for President Biden and most presidents, they like to take victory laps when they get them, especially right now in the run up to an election, because if this just gets ratified, there might not be

the same build up that we've seen. So it's capitalizing a bit on the news cycle here, But I think, yeah, at this point, we are not out of the woods yet. We're in this phase of a cooling off period, but we really have to keep a close eye, as Bloomberg reporters are on what is happening with the actual vote from the unions on whether or not to agree to

this steal. Oh it's interesting as well to see a Republican governor sort of trying to reclaim control of the news cycle with further reports and further evidence of migrants being bust in from border states to places like Martha's vineyard and now Vice President Kamala Harris's doorstep. Yeah, this isn't. This isn't. We've seen this this going on for a little bit here. I think at this point about ten

thousand migrants alone have been sent from Texas. Of the Democratic Cities d C New York Chicago Governor Greg Abbott says it's to send a message that they really need more border security and more border enforcement. But a lot of Democrats, and I think we heard a little bit of this just earlier in the show, are saying that they're using these migrants as political ponds. Migrants don't always know when they get on a bus exactly where they'll

be going. And while volunteers and cities including Martha's Vineyard and Washington, d C have stepped up to help with the influx of migrants, a lot of that these cities are saying, wait a second, we don't have the infrastructure

to handle this. We haven't even given any preparation. Vice President Kamala Harris pointed out that Texas Governor Gregg greg Abbott allegedly called Fox News to let them know that these buses were arriving, but he didn't bother to reach out to the Department of Homeland Security or other agencies in the area that could actually help the migrants when they arrived. Uh So, I think at this point we're

expecting to see this continue. Um. I will say California Governor Newsom is asking the Justice Department now to open an investigation into this practice. But I think this very much dovetails with what message Republicans are trying to push this mid terms, which is a lot about border security, a lot about immigration. That message worked very well for them in previous elections, and they're picking it back up again. Interesting. Let's get to the latest down the maral Lago investigation.

We now have a special master in place. We have a special Master in place, and it's actually one of the few things that both sides have agreed on. They've named US just District Court Judge Raymond Deary as a special Master to review all eleven thousand documents that were taken from maral Lago. But there's still some tension between

the Justice Department and the Trump camp. The Justice Department is asking that certain documents not be included in the special Master review because of the national security risk they pose and how they could impede their pending investigation on it. Um. We'll have to just have to keep an eye on

the courts as far as what's going to be happening there. Um. But there's a sort of a question of how long a potential review from a special Master would take, and if there is sensitive information in some of these documents, if there is a national security risk, how much longer do we want to spend before the Justice Department is able to address that? Yeah, leven thus in pages is a lot emily. Finally looks like the vote on the same sex marriage bill in the Senate is going to

have to wait. Yeah. A lawmakers announced yesterday that they are going to postpone that until after mid term elections in November. At this point needsan To be honest, we're not even clear that they actually have enough votes to pass. We know there are some Republicans who have come out said that they would vote with Democrats on passing, uh, this piece of legislation to reaffirm federal protections for same

sex marriage. But it's not clear that we have the needed tend that that must be there to pass any sort of legislation. UM. But this delay, you know, the lawmakers who are working on it say that it's in hopes that maybe after the midterms they'll be able to get more members on board and actually pass something. But other Democrats are pretty upset they're saying, hey, look, voters are about to go to the polls. If they have a senator who does not believe that same sex marriage

should be legal, they should know about it. We should put this on the floor, and we should try and get a vote. So you're seeing a bit of a battle between the policy and the politics of the moment on this particular issue. But Nathan, the other thing to keep in mind here is that we don't have a lot of days left. I think the House has about seventies and Session said it has a little bit more, but it's not a lot of time. And they got to keep the government from shutting down at the end

of the month too. And we've got to shut this conversation down for now because we're at a time. Bloomberg Government reporter Emily Wilkins with us. Thank you as always. Read more at Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington. Bloomberg and one oh five point seven f m h D two SMB futures now down twenty eight points down. Futures down a hundred ninety five, NASTAC futures lower by a hundred six Bloomberg.

Surveillance is next for Karen Moscow. I'm Nathan Hagar. This is Bloomberg.