My from the Bloomberg Interacted Burger Studios is Bloomberg day Break for two day, September twenty. It's two coming up this hour, the Fed kicks off It's two day meeting with another seventy five basis point rate hike on the table. Treasury two year yields are poised to crack about four percent for the first time in fifteen years. British Prime Minister Liz trust is pessimistic about a trade deal with the US, and four chairs drop on concerns of higher
supply costs. New York City is looking at legal action involving the influx of migrants from Texas. Plus Hurricane Fiona strengthens after devastating Puerto Rico. I'm Michael Barr More Ahead, I'm John Stashower and sports the Mets cliff to playoff Berth Max Scherzer picks them to victory, and Milwaukee Aaron
judge the Yankees tonight host Big Burg. That's all straight Ahead on Bloomberg day Break on Bloomberg eleven, Treeo, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine, San Francisco, sirius x M one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business Actor. Good morning, I'm Nathan Hagart and I'm Karen Moscow and US dot Index futures are moving
lower this morning. We are coming up to five oh one on Wall Street and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP futures are down five points down, futures down nineteen, NAS day futures down thirty one, and the decks in Germany's down a third of u percent. The ten year treasury down seven thirty seconds, you know, three point five one percent, and they yield on the two year three
point nine to six percent. Nathan here in the SMP five hundred snaffed to two day losing Street guest today. But right now futures are falling just a bit. Ten year treasury yields are hovering near three and a half percent, while the yield on the two years poised to crack four percent for the first time since two thousand seven. Jake Jolly is a senior investment strategist at B and Y. Melon I think it's going to be pretty toppy this week, right,
We're all waiting for Wednesday. We're all very attentive to you know, what's going to be coming. Most notably, I think in the summary of economic projections. I think everybody feels like a FED watcher these days. But until then, I think it's going to be a little bit choppy. And the FED meeting mentioned by b n Y Melons Jake Jolly, kicks off today. According to economists surveyed by Bloomberg, the Central Bank will high grades by three quarters of
a percentage point for the third straight time. Lori Calvacina's head of US equity strategy at RBC Capital Markets, they're still in the seventy days this point camp that they've certainly said that a hundred is on the table, and it does seem like there's been pains to make that messaging out there. It was a brutal day last week after that CPI print, we had a five percent drop
in the mastack. So I do think that a lot is baked in at this point in time, and I think what the market continues to struggle with is not just the aggressive action from the FED, but there were economic ramification Lourie Calvacina at RBC says more companies could downgrade their earnings forecast and that could lead to more uncertainty for the markets. In Japan, Karen, inflation accelerated to its fastest pace in more than three decades, and that's
creating headaches for the Bank of Japan. It will try to explain why it needs to continue with monetary stimulus when inflation is above its two percent goal. Consumer prices excluding fresh food rose at an annual rate of two point eight percent in August. Meantime, Nathan across Asia stocks snapped a five day losing streak. Hopes at Hong Kong will ease COVID restrictions helped boost sentiment, and we get the recap from Bloomberg's Juliette Sally and Singapore. Good morning, Juliet,
Good morning, Nathan, and Karen. Indexes in Hong Kong, we're up more than one percent one key gauge, climbing from the edge of a bear market. As Hong Kong's chief executive said, the city wants to relax COVID travel curbs after nearly three years of restrictions. They off show you one weekend despite the p BOC setting a stronger than expected fix for a nineteenth day, and Chinese lenders kept their loan prime rates unchanged. In Singapore, Juliet Sally Bloomberg Daybreak.
All right, Juliet, thank you. Let's turn to gel politics. Now there's word this morning a trade deal between the UK and the US is not likely anytime soon. Let's go live to London and get the details from Bloomberg's un Parts. Good morning, Good morning, Nathan and Karen. It's the first foreign trip for Liz trust since she became British Prime Minister two weeks ago, but touching down in New York for the UN General Assembly, she told reporters a trade deal between the UK and the US is
unlikely in the short all the medium term. An agreement with the world's biggest economy has been an ambition for post Brexit trade policy, but for now the new PM accepts it's not going to happen anytime soon. In London, Immune Parts in Bag Daybreak, are you and thank you? Now to the latest and the war in Ukraine, the country's foreign minister dimitro Ko le Bas calling on Western allies to send even more weapons to Cement the gains
from this month's counter offensive against Russia. He says it's been successful so far. It wasn't expected for some, but it was a thoroughly planned and well thought military operation. Um the next phase will be to continue liberating our territories. We will continue our counter offensive in the east of the country and Ukrainian Foreign Minister Dimitrio Kuleba spoke with Bloomberg in New York ahead of the UN General Assembly's
annual meeting. Last week, President Biden announced another six hundred million dollar drawn down from US military stock biles to provide aid to Ukraine. In Corporate News this morning, Karen, a big legal battle is back in the spotlight. We have new developments in the lawsuit found by Twitter against Elon Musk. Twitter co founder Jack Dorsey will now be questioned under oath as part of the case, and we
get the story from Bloomberg. Stud prisoner. Dorsey has been an energetic booster of Musk's fort four billion dollar bid for the company, but in July Musk retreated from his offer and accused the company of not providing information to assess the prevalence of bots. Twitter is now suing Musk to enforce the takeover agreement, even though Dorsey was subpoenaed last month by Musk. He will be question by attorneys
from both sides via zoom. The push to gather information and interview key players comes ahead of an expedited schedule for a trial. It's lated to begin October sevent and last for five days in New York. I'm duck, prisoner Bloomberg daybreak, all right, Doug, thank you well for it is also front and center this morning. Shares down almost five percent in early training after the automaker said inflation is pushing supplier costs a billion dollars higher than expected
in the current quarter. Ford expects adjusted earnings to be well below the three point seven billion it reported last quarter, and General Motors is getting a vote of confidence this morning. Karen from one big investor, Cathy Woods Fund, has scooped up shares of GM for the first time in more
than four months. Following a fifty percent draw down this year through July, GM shares have been gradually recovering as the company bets on selling affordable electric vehicles, and Apple unveiled major increases to its price tiers on apps and app purchases from Europe to Asia, protecting its margins as major currencies tumble against the US dollar. Customers and nations that use the Euro, as well as those in Sweden, Japan, South Korea, Chile, Egypt, to Malaysia, Pakistan and Vietnam, we'll
all see price six as early as October five. Futures are lower your local headlines straight ahead. This is Bloomberg, right, Karen, Thank you. It's five oh seven on Wall Street. We're at sixty nine degrees in Central Park, already dealing with an accident on the westbound Cross Bronx Expressway. It's by the Shared In Expressway. 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.
More migrants arrived by bus to New York from Texas yesterday, following six additional buses over the weekend. Mayor Eric Adams says this city is considering potential legal action. The situation in New York at certain tragic, with Mayor Adams confirming that an asylum seeker took her own life at a facility over the weekend. The failure was the governors that sent people on a multi day bus ride without of
proper food, without medical care, without the basic necessities. Mayor Adams says, eleven thousand, six hundred asylum seekers and migrants are here in the city. Meanwhile, of Texas Democratic sheriff announced the criminal investigation has been opened into who was behind the recruitment of dozens of migrants in San Antonio to be flown on a charter plane to Florida and
Martha's Vineyard in Massachusetts. Bear County Sheriff Javier Salazaras says they were lured, they were promised work, they were promised the solution to several of their problems. They were taken to Martha's Vineyard from what from what we can gather for nothing, for a little more than a photo video op and then they were unceremoniously stranded in Martha's Vineyard.
Saraff Salazaris says it's believed that a Venezuelan migrant was paid what would be called a bird dog fee to recruit people from the area around a migrant resource center. Fiona strengthened to a Category three hurricane overnight with winds of a hundred fifteen miles per hour as it approached the Turks and Caicos Islands. In Puerto Rico, more than a million people are without power, and officials say roughly thirty five inches of rain could fall on some areas.
In New York, Governor Cathy Hocle says, Puerto Rico needs assistance like any other state going through a natural disaster. Is our citizens, fellow citizens, and that is why we do this mutual late, as we would do if there were, you know, the flooding in Kentucky. Governor Hocle says, utility crews are ready to go down to help. UN Secretary General Antonio Guterres is warning that the world is in
great peril. He says. World leaders, meeting in person for the first time in three years at the UN General Assembly in New York, must tackle conflicts and climate catastrophes. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analyst and more than a hundred twenty countries. Michael Are this is Bloomberg Natham. Thanks. Michael turned up to five ten on Wall Street time to the Bloomberg
Sports Update. Good morning, John Stenshown, Good morning, Nathan. The Mets are now officially in the playoffs, and they are hoping that next month it's there one two punch that will take them for the night. After Jacob mcgraham began his start with five perfect innings and thirteen strike ats, it was Max Serser's turn. Came off the injured list in Milwaukee to hurl six perfect in as nine cages. Jersey has been taken out. Brewers scored twice in the
seventh off. Tyler McGill, also just back from injury, but the Mets one seven to two, ers two hundredth career win Peter Alonso at the three run homers thirty six. The Braves also won. They remain a game behind even in the lost column. Yankees back home tonight to play Pittsburgh, and the hot ticket is for a seat in the bleachers, a chance to catch a ball hit out by Aaron Judge, sitting on fifty nine home runs is next one matches Babe Ruth from seven, and then it's on too Roger Marris.
Judge continues to say it's not on his I'm focus to go out there and win a game. Numbers unless there is numbers, and you know I'm focused on newing. I can to be a good teammate, help the team win. That means homer and then it means the homer. But never never been more focus, ever been. You know, I managed I play this game in the Astros last night clinch the a L West. The Guardians won. They leave the Ale Central by four games para Monday night blowouts.
Buffalo forty one to seven over Tennessee. Josh Allen and Stefan Diggs hooked up for touchdowns three times. Philadelphia all over Minnesota twenty four to seven. Jalen Hurts ran for two touchdowns through a fifty three rd TD pass. The Bills and Eagles both too and oh Jets go to Rob Sala, says Zach Wilson. Looks good in practice, but Jets might stick with last Sunday zero Joe Flacco for
at least one more game Sunday against Cincinnati. John stash I Wenter Bloomberg Sports, Nathan Okay, John thanks SMP future is moving lower now down ten points, Stown futures down fifty four Nance deck futures, adding to their declines down fifty two points in the ten year Treasury yield right now three point five to per cent. You're listening to Bloomberg Day Bread Bloomberg eleven three oh weather. Sunshine today and hides in the low eighties, mostly sunny with a
high near eighty tomorrow. By Thursday showers lightly hides them in the upper seventies. Right now sixty nine degrees in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Brictake. This is a Bloomberg Business flash and I'm Karen. Moscow stocks giving up early gains as traders gear up for another supersized US rate high, committed rising anxiety the Federal Reserve could overtighten and raise the
odds of a hard landing. Fed policymakers open a two day meeting today with a decision on interest rates scheduled four tomorrow, and U S Dock index futures are lower. We checked the markets every fifteen minutes throughout the trading day. On Bomberg, SNP future is down about twelve points this morning, down features down fifty six and NASDAC futures down fifty three. The decks in Germany's down half percent. Ten year treasury down ten thirty seconds. You have three point five two percent.
They yield on the two year three point nine seven percent. Nine X Screwed oil is up half percent or forty six cents at eighty six dollars. Nineteen cents of barrel. Comic school is down a tenth of upper cent or two dollars at sixteen seventy six twenty an ounce. The euro is at one point zero zero one zero against the dollar, British pound one point one three two and again one forty three point seven. To look at a bit coin, it's down one point two percent and nineteen thousand,
two hundred ninety dollars. And today we are looking for reports on housing starts and building permits at a eight thirty Wall Street time. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning, Kerin. Hurricane Fiona has strengthened into a Category three storm as it now heads towards the Turks and Caicos Islands. It continues to
cause heavy winds and rain in the Dominican Republic. In Puerto Rico, where floodwaters rushed through the streets and many are without power. Border Crossing Sword In August, US Customs and Border Protections reported an increase in migrants from Venezuela, Cuba and Nickarava, stopping about fifty six thousand last month. It was a Monday night football doubleheader. The Bills put on What four and Why Women on the Titans forty one seven. The Eagles beat the Vikings twenty four seven.
In baseball, the Mats one clinching a playoff birth the Nationals and Orioles lost the Giants one. 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 bar this is Bloomberg Nager. Okay, Michael, thank you. We're coming up to five twenty on Wall Street Live from the Bloomberg Interactive
Broker Studios. This is Bloomberg Daybreak. We've got sd Dweck with us this morning, chief investment officer at Flow Bank, with the focus on central banks this week and a FED decision tomorrow. See good morning. We're watching futures move lower the two year yield getting ever closer to four percent, Does this market have more pricing into whatever the Fed's gonna do tomorrow? Good morning, Well, it's certainty, certainly seems
to be the case. I think the market is worried, is that the terminal rate in the dot plot that we're going to get tomorrow is going to be higher than um, you know, four four point five or something like that, And so there's a little bit of readjustment, especially well a lot of readjustment, especially at at the two year yields, waiting for the announcement tomorrow. So how much further do you think these this market could go? In the stock market, how much further could we see
treasury yields go? Well, you know, it really depends if we get an even more hawkish uh surprise from the Fed or something as hawkish as uh Powell was it at Jackson Hole, or whether we have a dots plots that shows below four and a half, which is already basically priced in by the markets. Um, we've broken through those June highs on the tenure, so there is some room to the upside, but it is starting to feel again unless the Fed again resets those terminal rate expectations.
It is starting to get a little bit stretched on the yield front. Now, we did get a hawkish surprise this morning from Sweden Central Bank coming in with a hundred basis point move. Does that have any impact on your expectations for the Fed tomorrow? I don't think so. The Fed is most likely going to do seventy five at this point again, even if they went a hundred, because they are trying to frontload these these rate hikes. UM, I think the market might not necessarily see it as
a negative again, depending on how that terminal rate ends up. Uh, it's really a question of how high do we go and for how long do we stay there? UM the past higher Now we know it's going to be a lot of big hikes. We have seventy five basis points mostly planned in for November already, so we know a few of these are coming. Now, what does that mean for corporations going forward? Here we're hearing a number of
earnings downgrades. Of course, you got that big report from FedEx last week and more gloomy picture from Ford as well this morning. Are we in uh setting ourselves up here for even further earnings downgrades? From companies getting into the last quarter. It's something we definitely need to watch. The Ford one is more question was more question of waiting for UH some parts and then UH they think
their Q four deliveries are going to be fine. So we saw that with some other carmakers a few quarters ago. So the full year twenty two wasn't changed. FedEx was definitely a warning, but so far it's one of the only companies that has been as negative about the rest of the year. But we have to watch that and if it starts to become very big downgrades to the outlook and not just some downward adjustment, then I think
that can be another worry for markets. So in our last minute, here SD what's the risk of economic slowdown or even recession given the strongest stance we're seeing from the FED, And where do you put your money at this point? Well, it's interesting because you you have a labor market that's holding up, you have growth data that appears to be holding up so far, so it doesn't feel like we're sort of stirling towards a recession and that's very elusive. Soft landing seems like a possibility at
this point. Well, it's certainly going to have to watch that over the next few months. But in the short term, sentiment is negative. I think we probably have at least a few more weeks of downside risks. So for now, I mean, you know, dollar is still king, cash is obviously paying so uh for the Again for the short term, certainly more on the cautious side, and certainly are seeing even more dollars strength this morning as well. Thanks for this, s D. Again, great having you back on with us
this morning. S D. Dwack, chief investment Officer at Flow Bank. As we watched the market this morning, we're seeing futures add to their declines. Right now, We've got SMP futures lower by fifteen points down, futures down eighty three, and Nasdaq future is a drop of six tenths percent sixty
seven point decline on the tech heavy NASTAC futures. The ten year Treasury is down ten thirty seconds, with the yield close to three point five three percent, the yield on the two year getting ever closer to four percent right now at three point nine eight nime X screwed is up a half percent, or forty six cents eighty six dollars nineteen cents of barrel and looking at that dollar strength once again, the euro pretty much at parody against the dollar at one point zero zero zero around nine.
This is Bloomberg and Bloomberg Daybreak is brought to you by Peapack Private Wealth Management. Peapack Private Wealth Management knows that the portfolio is more than a collection of assets, It's a path to your future. Visit Peapack Private dot
com and begin your financial legacy today. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Loving Freed to Washington, d C, Bloomberg on to Boston, Bloomberg one O six one to San Francisco, Bloomberg non sixteen to the Country Sirius XM to A one nineteen and around the globe the Bloomberg Business apt and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm
Karen Moscow. We are just about four hours away from the open of US trading. Let's get you up to date on the news. You need to know what this show or US futures are lower following a late day rally on Wall Street and US tenure reel yields rose to the highest, and the SNP five hundred snapped two
day losing streak after sledding much of last week. The market uncertainty comes as the Fed cakes off it's to day policy meeting at The question now is whether the Central Bank hikes interest rates by seventy five or a
hundred basis points. William Houston, as chief investment officer at Bay Street Capital, as soon as that trend reversed this course, you know, we stopped seeing this inversion in the yield curve where investors are being actually rewarded at a higher rate on these sorter term yields as opposed to longer term reels. As long as that's the case, Yeah, equity, they're going to perform poorly. William Houston with Bay Street Capital, thanks the Federal raise rates seventy five basis points tomorrow.
An economists recently surveyed by Bloomberg degree trains for life coverage to that Fed decision tomorrow on a special edition of Bloomberg Surveillance starting at one thirty pm Wall Street time on Bloomberg Radio and television. The Fed is the only central bank making policy decisions this week Karen and Europe. Sweden central Bank high rates a larger than expected hundred
basis points. Over in Asia, the Bank of Japan will have to decide whether to continue monetary stimulus this week after inflation accelerated to the fastest pace in more than three decades. We also get a Bank of England decision on Thursday. And the geo politics now Nathan where world leaders meeting at the u n this week or in the spawn line and ahead of her meeting with President Joe Biden, UK Prime Minister Liz Trust says she does not expect a trade deal between the two countries anytime soon.
I meantime, the war in Ukraine rages on Karen in that country's Foreign Minister to meetro Kuleba, says Ukraine will continue its counter offensive against Russia in the East. He's calling on Western allies to send more weapons. Sometimes I'm being asked whether there is enough of weapons that we have received. I always say I will be able to say it was enough only after Ukraine wins. Until then
we will be asking for more. Ukrainian Foreign Minister to meetro Kuleba spoke with Bloomberg ahead of the UN General Assembly's annual meeting last week, as an in Biden announced another six hundred million dollar drawn down from US military stockpiles to provide aid to Ukraine. Incorporate News Now, Nathan.
Twitter co founder Jack Dorsey will be questioned under oath today in the lawsuit filed by Twitter against Tesla founder Elon Musk and shares a Ford are down five percent in early trading, Karen, after the automaker announced inflation is pushing supplier costs a billion dollars higher than expected in the current quarter. And again futures are lower with US and P futures down about ten points. And straight ahead your latest local headlines plus a check of sports, and
this is Bloomberg. Thank you. Caring five thirty three on Wall Street, sixty nine degrees in Central Park, still dealing with the accident westbound prossproxitly shared an expressway. More 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 Mayor Eric Adam says he will soon have a plan to deal with the bus loads migrants arriving in the city from the
southern border. Mayor Adams says he'll first examine the issues than to come up with a plan to deal with the migrant crisis landing in the city. We are not telling anyone that New York can accommodate every migrant in the city. We're not encouraging people to send eight nine buses a day. That is not what we're doing. Mayor Adams says the city has taken in more than eleven thousand asylum seekers and migrants, processing undred of them while
opening twenty three emergency shelters. But Adams says among the many next steps could be litigation. We are strongly in supportive rights right to shelter, but there's aspects of it that we want to look at, and so we're looking at our legal options on all of what we are seeing how to address this. Mayor Adams also confirms one migrants sent to New York committed suicide over the weekend. Hurricane Fienna is barreling toward the Turks and Caicos Islands
as it strengthens into a Category three storm. The intensifying storm also kept dropping rain over the Dominican Republican Puerto Rico. One person has died and more than a million people remain without power in Puerto Rico. In New York, Governor Kathy HOCl said, crews are ready to go down to help. We are continuing to monitor the situation. We have assets ready to be deployed. We are anxious to provide the support that the people of Puerto Rico and the Dominican
Republic need at this time. Governor HOCl says, the people in Puerto Rico are our fellow citizens and need aid. UN Secretary General Antonio good Terrorist is warning that the world is in great peril, he says. World leaders, meeting in person for the first time in three years at the UN General Assembly in Manhattan, must tackle conflicts and climate catastrophes, increasing poverty and inequality, and divisions among major powers.
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. Nathan. Thanks Michael on streetch On Stenshire as the bloom Bridge Sports something all right, Nathan? After the Yankee he spent this past weekend in Milwaukee. The Mets went there. They took Max shows Are off
the injured list. He went for his two career victory of the Mets, seeking one more win to assure them a playoff birth. Mets and Brewers scoreless fourth inning. To pitch, Alonso tried to deep philipp Field. This bull's fair and it's way out of here. Three run shot Pete Alonzo and the Mets strike first in Milwaukee. It's three nothing at the top of the four pennings. Alonso's thirty six w CBS Adam. Mets went on to win seven to two.
Shots are brilliant, taken out after six perfect hintings. The playoff birth is the Mets tenth in team history, first in two thousand and sixteen. Of course, they'd like to go in as Division champ ear a first round by, but Atlanta continues in hot pursuit. The Braves one to remain one game behind. The Pirates just lost four times with the Mets and City Field. Now they visit the
Yankees with all eyes on Aaron Judge. The question now is not if he breaks Roger Marris's Yankee in American League home lun w rep, but when he needs three, could he do it? During this sixth game homestand week two in the books, impressive home wins for Buffalo and Philadelphia. The Bills all over Tennessee one to seven. Josh Allen four touchdown passes, three went to Stefon Dick. Titan's loss means that in the a f C South, the four teams have combined for the one victory. The Eagles easily
over Minnesota to seven. Jalen hurts in on three filling touchdowns just in the first half. Next Monday, it's the two and oh Giants hosting Dallas, and that's the night after the Jets welcome in Cincinnati. Bengals are owing to both of the losses on last second field goals. Johns Dashword Bloomberg Sports Nathan thanks John seven on Wall Street Time for the Tri State Business Report with Bloomberg's head.
Cory Investors, led by New York City's pension funds, final to shareholder proposal calling for an audit of workers rights at Starbucks. The resolution urges Starbucks directors to commission and release a third party assessment of the company's compliance with
commitments to honor workers. Collective bargaining rights. New Jersey teach years in the state's school employees health benefits program will be paying over fifteen percent more for health coverage in three similar though slightly less than the increased imposed on municipal and county workers. Teachers did not avoid the big hike like state workers did. Connecticut's Attorney General met Monday with the M and T Bank executive who oversees the
New England region. He made a series of demands he hopes will resolve problems with a computer system conversion designed to combine People's United Bank and the Buffalo based financial institution. That your Bloomberg Trying State Business Report. I'm Ed Corey, thank you at eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our
three hundred affiliate radio stations around the world. I'm Steve Potas Content and Wins in New York. We're talking about the Lord and Taylor brand looking to aggressively reintroduce itself to consumers. M Cornetana how on ktr H in Houston, Halloween spending is expected to hit a record of ten point six billion dollars. I'm Gina Servetti in for w c c O in Minneapolis. I'm reporting that a Minnesota based self storage company has taken its property tax fight
to the U. S. Supreme Court. I'm Stephen Carol on DAB Digital Radio and London. We've been reporting on the ricks bank hiking rates by a hundred basis points as the Swedish Central Bank kicks off a massive week of right to sais. I'm Abe Corey on w w J in Detroit. I'm reporting seven Midwestern states are teaming up
to promote frank regen is, the clean energy alternative. And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Among the many crowd pleasing elements of the Inflation Reduction Act, which President Iiden signed into law last month is a measure to cap the cost
of insulin from Medicare recipients. Lawmakers from both parties now want to widen that benefit to millions of others who rely on the life saving drug Insulin. Affordability is a problem. Americans pay roughly eight times more for the century old drug than people in the rest of the developed world. But while limiting out of pocket costs for insulin has obvious political appeal, it does nothing to contain the overall
price of the drug. Rather than attempting to manipulate prices, Congress should marshal the forces of competition to bring down costs. That sort of strategy would benefit consumers and taxpayers alike. The editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or OPI n go on the Bloomberg terminal. This has been bloom Urg Opinion. Listen for Bloomberg opinion editorials
every weekday. At this time, terminal customers can read more at O P I n go. SMP features down thirteen points down, futures down seventy three, Naszac features lower by fifty nine points. The tenure Treasury yield three point five three percent. This is Bloomberg Bloomberg eleven three oh weather, mostly sunny, low eighties today, will get near eighty tomorrow under mostly sunny sky by Thursday, showers likely upper seventies.
Right now sixty nine degrees in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, of Bloomberg Business at and at Bloomberg Tricktap, He's a Bloomberg Business flash and I'm Karen Moscow. And stocks giving up early gains as traders gear up for another supersized US rate high commid rising anxiety the Federal Reserve could overtighten and raise the odds of a hard landing.
FED policymakers opening up a two day meeting today. US dock index futures they're extending their declines, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P Future is now down about eighteen points down, futures down a hundred six, and NASTAC futures down sixties seven. The decks in Germany's down eight tenths of a percent, ten, Your treasury down twelve thirty seconds, you'll three point five three percent, and they yield on
the two year three point nine seven percent. Ni Max screwed oil is up tenth of a percent or twelve cents at eighty five dollars eighty five cents of barrel call Max School down two tenths per cent or two dollars ninety cents at sixteen seventy five thirty an ounce. The Euro one point zero zero zero four against the dollar, British found one point one four one five and again one forty three point seven four and Bitcoin this morning is down one and a half percent in nineteen thousand,
two hundred twenty dollars. And as a Bloomberg Business flash down, here's Michael Barre with more on what's going on around the world. Muchaele Karen, thank you very much. Every Tame Fiona's strengthened to a category three storm with winds of a hundred fifteen miles per hour as it barrels towards the Turks and Caicos Islands in Puerto Rico, more than
a million people are in the dark. Former President Donald Trump's legal team appears before the new Special Master Raymond Deary today, but they are opposing one of Deery's requests. Trump's legal team has refused a request by Derry to clarify actions taken to declassify material sees at the former presidents of our Lango State. It was a Monday night football doubleheader. The Bills put on What four and Why, whipping on the Titans seven. The Eagles beat the Vikings seven.
In baseball, the Mets one, clinching of playoff birth the Nationals and Orioles lost the Giants. One. 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 Barr And this is Bloomberg. Nathan, Okay, Michael, thank you. It's five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studios.
This is a Bloomberg daybreak. And the Federal Reserve is beginning it's two day policy meeting for September this morning. Determined to put a whipping on inflation second, I mean yet more supersized rate hikes. Let's bringing Carl Ricka Donna for more on this. Chief US economist at BNP party BA Carl Good to speak with you again ahead of the FED decision. The markets pricing in seventy five basis points.
We just heard from Sweden's central bank they went ahead and did a hundred what's the chance of a FED surprise tomorrow, Carl, Well, good morning. There's there's about a fifteen chance of a hundred basis point moved from the FED that priced into FED plus futures. However, I think that this is more of a hedging US footprint in the markets, and I think there's a pretty clear cut case to continue with more of the same. These what we'll call jumbo sized seventy five basis point moves. That
is still an exceptional pace of tightening. Even if they downshifted to fifty, this is still an exceptional pace of tightening. So we should not view another seventy move is some kind of indication that the FED is not making herculean efforts to combat the inflation problem in the economy at the moment. So our seventy five basis point moves here to stay. Do you think we see a pivot toward slower jumbo size moves this year? Well, the FED has tested some of the language or or maybe laid the
groundwork for a downshift. Chair Powell talked about the appropriateness of downshifting policy once monetary policy tightened a bit further and financial conditions of tightened further. That's not this meeting. Clearly, it could have been this meeting if the cc I data showed some signs of cooperating or responding to the tightening of financial conditions we've seen over the course of the year. That certainly was not the case. November remains
an open question. Now you can make the case that there's a limited supply of data between now and the November rate decision. That would be one more jobs report, one more inflation report, So that sounds like not too much. But if we if we look at the totality of data, as Chairpel describes it, that will have another g DP princes or the first look at Q three the e
c i UH. We'll have a lot of corporate earnings data, and then a lot of other data points that inform our decision making, like the I S M surveys for instance, and industrial production. So there really is a lot of data to digest between now and November. That said, given the momentum that the heat we're seeing in the economic data, it will be hard to make that turn unless we
really do see a pronounced downshift in the data. That said, we know from the macro landscape that growth is de seller rating very aggressively, and this ultimately will take a toll in all of those indicators I mentioned, including the inflation numbers. We're talking about. Last year, at this time, growth registering twelve percent as it was last reported, So one year later, growth decelerating to below two UH, and our forecast by year end is something below even a
half a percent on GDP. That is a very dramatic slowdown. And so as that becomes more evident in the data, I think both policy makers and market participants will be more comfortable UH proceeding at a slower pace. Carl, just thirty seconds left here, But are you expecting any big changes from the FEDS economic projections this week? We will see some pretty substantial changes to the forecast. So we'll
we'll see growth marked down. UH. Looks like policy makers are going to lean harder on the brake pedal, so we'll see UH. You know, a higher interest rate that trajectory, this should create more slack in the economy, So UH slightly marked up trajectory for the unemployment rate. UH, and of course an acknowledgement that we're seeing more inflation uh and less improvement in the inflation than what they were
previously anticipating. So you'll see a lot of markups in that summary of economic projections if they will be releasing alongside with the meeting statement. Thanks Carl, always good talking with you. Carl Ricka don and out, chief US economist at BNP Party, Karen Very Nathan, thank you. At five three on Wall Street, time for the Bloomberg The Law Report,
brought to you by American Arbitration Association. Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader and alternative dispute resolution for over ninety years. More at a d R downt Org. Let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, the Internal Revenue Service is extending some filing and payment deadlines for individuals and businesses in Puerto Rico that have been
affected by Hurricane in Fiona. A bill passed by Congress directs the Labor Department to look into the obstacles facing skilled immigrants who seek employment in the US. A federal judge in New York rule that Jeff bloom must face disability discrimination claims from an asthmatic former groundworker. The workers says the carrier refused to administer a saliva test instead
of a breathalyzer test after a luggage vehicle accident. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, Thanks, Now another legal story we're watching. Yeshiva University has decided to temporarily suspend all undergraduate club activities after the U. S. Supreme Court refused to step into a legal fight over
its refusal to recognize a campus LGBTQ student group. The ruling split the justices five to four, but the descent appears to indicate that the win for the student group may just be a temporary one for more Bloomberg student grasses. East Richard Garnett a professor at the University of Notre
Dame Law School. So the descent written by Justice Samuel Alito, at least four of us are likely to vote to grant Sir Sharrari if Yeshiva's first amendment arguments are rejected on appeal, and Yeshiva would likely win if its case came before us. Isn't he deciding the case before it's even been argued? Well, you only need four justices to grant sirt, you know, and there were four justices on
the descent there. But it was interesting that extra bit where Justice Leader does pretty clearly suggest to the parties below that he thinks it wouldn't just be the four on Yeshiva side. And I think he's probably right about that. I mean, I suspect that it wouldn't even be just five or even six, that if the case were to actually get to the Supreme Court, that Yeshiva would win.
But for you know, whatever reason, a majority of the justices wanted to have this thing sort of play out more slowly and to play out fully in the state court system before the Supreme Court comes in on the ultimate merits questions, Why do you think that it's such a clear cut case on the merits? So the doctrine that the Supreme courts settled on in recent years is that a law that is not generally applicable, but that Burden's religion is subject to what's called strict scrutiny, and
that's a very demanding standard. And it seems pretty clear that the New York anti discrimination regulation that's being applied here has lots of exceptions. There's all kinds of civic groups and clubs and other organizations that are not subject to this particular anti discrimination norm, but Yeshiva is, and so Yeshiva is going to be able to say the application of this law is a burden on our religious
freedom rights. And because it's a burden that's being imposed by a law that's not general, then that burden has to be evaluated under this very demanding standard. And generally speaking, when strict scrutiny is applied to a law, the law loses. And I think it'd be again more than just Bob or even six justices who would think that that was true.
Because if New York is willing to allow various other nonprofits to have internal rules that reflect their values and their missions on I think the Court's going to say
that they can't deny that to Yeshiva. And that's Richard Garnett, a professor at the University of Notre Dame Law School, speaking at the Bloomberg Student Grosso catch more of that interview plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading this show at Bloomberg dot com, slash Podcasts, Attorneys Confined, exceptional legal research and business development tools at Bloomberg Law dot com and
on the Bloomberg terminal at b law Go. And coming up straight ahead, we have check on the business headlines and all the news you need to start your day. And this is Bloomberg