Bloomberg Daybreak: September 20, 2022 - Hour 2 (Radio)

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 bar More Ahead, I'm John Stashower and sports, The Mets clifts the playoff Berth, Max scherz Or pitts them to victory, and Milwaukee Aaron Judge

The Yankees Tonight host Picksberg. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, Trio, New York, Bloomberg one, Washington, d C, Bloomberg one six one, Boston, Bloomberg nine six, San Francisco Sirius XM one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business at Good Morning, I'm Nathan Hagar and I'm Karen Moscow.

US documentis futures are lower this morning, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Yes we come up to six oh one on Wall Street SMP futures down about eighteen points now, futures down a hundred thirteen nast day futures down at sixty five, and the decks in Germany's down about eight tens of percent. Ten year treasury down eleven thirty seconds, YELD three point five three percent, and they yield on the two year

three point nine six percent. Nathan Karen, the SMP five hundred stamped a two day losing street yesterday, but we are watching futures fall this morning and ten year treasury yields are hovering above three and a half percent. Yields on the two year pois to crack four percent for the first time since two thousand seven. Jake Jolly is a senior investment strategistic bing y Melon. I think it's going to be pretty choppy 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. Well, the FED meeting mentioned by b n Y Melons Jay Jolly kicks off today. According to economist survey by Bloomberg, this central Bank will high rates by three quarters of a

percentage point for the third straight time. Lori Calvacinos, head of US Equity Strategy at RBC Capital Markets, Look, they're still in the seventy daysis point camp that they certainly said that a hundred is on the table, and it does seem like there's some 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 mask back. 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 economic ramification. And Lori Calvasin at RBC says more companies could downgrade their earnings forecasts, and that could lead to more uncertainty for the market. Man, it's not just the Fed boosting

rates this week, Karen. We got a surprising Europe this morning when Sweden Central Bank raised rates a larger than expected hundred basis points. The bank also said rates will continue to go up over the next six months. In Japan, Nathan, inflation has accelerated to the fastest pace in more than three decades. 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. Well meantime, across Asia, Karen stocks snapped a five day losing streak. Hopes that Hong Kong will move east or to East COVID restrictions helped the boost sentiment. Let's get the recap down from

Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good morning, Nathan, and Karen Indexes in Hong Kong, We're up more than one 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 cubs often nearly three years of restrictions on weekend to spot. The pbo A c 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, Right, Julia, thank you. We turned to geopolitics now, and there's word this morning that a trade deal between the UK and the US it's not likely anytime soon. We go to London and get the details from Bloomberg's UN parts. Good morning, Uen, 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 shorts 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, Blomberg debreak. All right you and thanks now to the latest on the war in Ukraine. The country's foreign minister Demetro Klebs, calling on Western allies to send even more weapons to cement the games from this month's counter offensive against Caleb, says it has been successful so far. It wasn't expected for some, but it was as 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. Ukrainian Foreign Minister Demitro Caleb 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 stockpiles to provide aid to Ukraine. Well incorporate news this morning, Nathan, A big legal battles back in the spotlight. We have new developments in the

lawsuit filed by Twitter against Elon Musk. Twitter co founder Jack Dorrisey will now be questioned under oath today as part of the case. And we get the story from Bloomberg's Doug Christner Dorsey has been an energetic booster of Musk's forty 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 questioned 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 sevente and last for five days in New York. I'm Doug Chrisner Bloomberg Daybreak, All right, Doug, thank you for it is also front and center this morning. The shares are down more than four and a half

percent in early trading. The automaker says inflation is pushing its 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 dollars it reported last quarter, and Nathan General Motors is getting a vote of confidence this morning from one big investor, Cathy Woods Fund has scooped up shares of GM for the first time in

more than four months. Following a draw down this year through July, GM shares have been gradually recovering as the company bets on selling affordable electric vehicles and futures are lower. SNP futures are down about twenty points down, futures down a hundred thirty three, NASDACK futures down seventy three, and the Tenuere treasury down eleven thirty seconds. He had three point five three percent straight ahead, your latest, the local headlines,

plus a check of sports, and this is Bloomberg. I can't thank you to six oh seven on wall street work, sixty degrees in Central Park. Got a lot of closures around the U. N may have heard they've got a general Assembly session this week. Michael Barr has more on what's going on in New York and around the world. Corny Michael, Good morning, Nathan. More migrants arrived by bus to New York from Taxas yesterday, following six additional buses over the weekend. Mayor Eric Adams as his city is

considering potential legal action. The situation in New York has turned tragic, with Mayor Adams, confirming that an asylum secret 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 Adam says, eleven thousand, six

hundred asylum seekers and migrants are here in the city. Meanwhile, the Texas Democratic Sheriff announced the criminal investigation has been opened into who was behind the recruitment of dozens of migrants in San Antonio. It'll be flown on a charter plane to Florida and Martha's Vineyard in Massachusetts. Bear County Sheriff Javier Salazar 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. Sheriff Salazar says it's believed that a Venezuelan migrant was paid what is called a bird dog fee to recruit people from around a migrant re source center Fiona strengthened to a Gatacori 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 Kathy Hokel says Puerto Rico needs assistance like any other state going through a natural disaster. These 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 Hokel says, utility

crews are ready to go down to help. U N 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

journalists analysts more than a hundred twenty countries. Michael bar this is one Burg, Nathan Michael, thank you Almost six ten on Wall Street time for the Bloomberg Sports Update with John Stenshowner. Thanks Nathan. The Mets now officially in the playoffs and they're hoping that next month it's there. One two punts they could take them for the night. After Jacob Gron began his start with five perfect dtings,

it was Max Scherzer's turn. Came off the injured list in Milwaukee in to hurl six perfect and Ain't Serger was then taken out. Brewer's scored twice in the seventh thought Tyler McGill, also just back from injury, but the Mets one seven to two. Sherzer's two d career victory Pete 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 taking this for a seat in the bleachers, chance to catch a ball hit out by Aaron Judge, sitting on fifty nine home runs. His next one match's Babe Ruth from seven and then it's on the Roger Marri's. Judge continues to say it's not on his mind. Games, there is numbers, you know, focus on doing. I can to be a good teammate, help the team win, but that means hitting Homer, and then it means sitting Homer.

But never been my focus, ever been. You know. The Astros last night clinch the Als. The Guardians won. They leave the Ale Central by four games. Parent Mother 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 and through a fifty three r TV passed.

Rob Sala says, Zach Wilson looks good in practice, but the Jets might stick with last Sunday's hero Joe Blaco for at least one more games. Sunday in Cincinnati the four. Wilson returns from his Injurney Bloomberg Sports Nathan all Right, John, thanks for watching futures fall ahead of the FED decision tomorrow. Right now, S and P futures are down twenty points. Stown futures down a hundred forty. NASTAC futures are lower

by seventy six points. We talked about this market next with Daniel Morris, chief market strategist at BNP part he bought asset management. This is Bloomberg Bloomberg day Break brought to you by Jewish Communal Fund. For fifty years, j c F Stoner Advised Funds have been helping families create charitable legacies. Start now and open to j c F fund before your end. Visit j c F n y dot org. Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, The Bloomberg business at

hand at Bloomberg Quick Day. She's a Bloomberg business flash and I'm Karen Moscow. Stocks are falling, with US Stock index futures giving up early games as trader's race for another supersized US rate high commid rising anxiety that the Fed could overtighten and raise the odds of a hard landing.

We checked the markets every fifteen minutes throughout the trading day on Bloomberg, U S and P futures down twenty one point, staff futures done a hundred forty four, NASDAG futures down sent three and the decks in Germany's down nine tenths of a percent ten Your treasury down twelve thirty seconds, yell three point five three percent yield on

the two year three point nine seven percent. Ninemex crude oil lit'tle change at eighty five dollar seventy eight cents a barrel, Pomex go down to tens per cent or three dollars seventy cents at sixteen seventy four fifty ounce. The Euro one point zero zero zero three against the dollar British found one point one four one nine and the yen one forty three point seven two. Looking at Bitcoin this morning, down one and a half percent at

nineteen thousand, two hundred twenty dollars. That's a Bloomberg business flash down. Here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. Hurricane Fiona strengthened into a Category three storm as it now heads towards the Churchs and Cacos Islands. It continues to cause heavy winds and rain in the Dominican Republic in Puerto Rico, where flood of waters 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 Nicaragua, stopping about fifty six thousand last month. It was a Monday night football doubleheader. The Bills down the Titans with a giant win forty one to seven. The Eagles beat the Vikings seven. In baseball, the Mets one, clinching a playoff birth. The Nationals and

Orioles lost the Giants one. Global 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 BLOOMBERGA okay, Michael, thank you. The six nineteen on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak as we keep our focus on this market ahead of the Fed decision tomorrow. We're joined by Daniel Morris, chief market

strategist at BNP Party Asset Management. Daniel, good morning, Look at the futures, it looks like stocks could give back most of the modest gain we saw yesterday. What do you think is driving this uh in a gloomy move we're seeing right now. Uh, fear and loathing though I think that that might be a book title. I mean, clearly, the markets are gonna be nervous until we get an actual number from the fet UH and the story behind it.

So just anxiety is what you're going to see, volatility in the swings and so you've got it until you've got a bit more concrete information. All right, Well, what's the concrete information you're expecting from the FT. Obviously we've got the markets pricing in a seventy five basis point move we heard from the Swedish Central Bank surprising with a hundred basis points. Could we see a surprise from

the Fed tomorrow, Well, of course we always could. I think that's the bit of information that we want to definitively have that it's only only seventy series of UD turned out to be unwarranted. Uh, and you know, our expectation is that it will be seventy five, but you never know. And I think what's also important to keep in mind is, you know we especially with this next hike, that's a lot of moves, a lot of hikes from

the FT over a relatively brief period of time. And that's as yet really not had any input, not any, but not its full impact on the economy. So even though of course we're very much focused on inflation and focused on growth, you know, the real import of all these hikes is yet to be felt. So that's why we need to balance. Okay, what's been done so far, what is that going to do to growth and inflation? And then how you know does the FED then respond

to that? Do they pause and say we've done enough, or do they keep going? Yeah, I guess that raises the question as you say, what we could expect from the FED in the subsequent meetings in November and December. What's your outlook there? Well? As always, the debate with central banks is is what you think they should do and what they will do, And what they've been messaging is they want to see some real declines in the

inflation rate, so ideally inflation cooperates on that line. In particular, leave we want to remember we need to focus on core inflation, on headline inflation, and if we do start to see a reduction in those pressures, which is possible, then that would allow the F maybe not to start cutting rates. We think there is going to be a pivot for quite a while yet, but at least to slow down on the hikes or on the pace hikes.

So that's going to be the key thing. I'm sure they're going to mention data dependent because really that is what they're highlighting, and that's what we're also going to be paying attention to as well. So how do you advise clients to position given the uncertainty we are seeing around the federal reserve right now? How do you balance

the portfolio in this environment? Yeah, well, there's certainly not only is I think it's always challenging, but particularly challenging this year, given that you've had negative returns, and not only for equities, but of course for fixed income, and and anyone who's had a sixty forty portfolio starts to

wonder if that's really the right allocation. The overall we're neutral inequities, but overweight outside of the markets with that face these monetary pressure, So we're underweighting New York for example, and we're overweight in China and Japan. So I think one, uh,

it's geographical diversification. And then even within fixed income, and we're still short duration in the US, but we do like Euro's own investment in great credit where spreads are actually fairly high and we think attractive relatives to the risk that you're taking. So, you know, as in any market, there is opportunity, you've got to look at the risk reward, and we are finding some good opportunities even with this environment.

Other than geographical diversification. Do you see any opportunities some alternative investments in in the US? Well, and always and if anything, if you think about you know what UH you know, publicly treated UH portfolios have gone through this year. You know, I think we've all been looking about and thinking about private equity, private at those types of alternative investments for a long time. But their value I think

has really come through this year. Is it really does give you some diversification, and you know, I think that's that's really what everyone is looking for right now now, last thirty seconds here, Daniel. Are there certain in sectors that are more insulated from the risk of an economic

slowdown in the US than others? Well, typically you're gonna look towards defensive sectors, and you know that's always been the case, and I think that well, the cases you start to see growth slow down in the US, and at some point, though not necessarily right away, I think you are going to want to look to growth because if we do start moving into a recession, growth comes out of premium. So I think that's going to be the other area we're gonna be looking at interesting. Thanks

for this, Daniel, as always good speaking with you. Daniel Morris, chief market strategist at BNP Party Asset Management. Right now, futures are moving lower across the board. SMP futures are down nineteen points now down futures down a hundred thirty

and NASDAC futures are lower by sixties six points. The tenure Treasury is down twelve thirty seconds, the old three point five three percent yield on the two year edging close to the four right now three point nine seven per cent dollar strength once again this morning, the Euro at one point zero zero zero eight to the en one forty three point five nine. Are listening to Bloomberg Daybreak Bloomberg eleven three oh weather. Sunshine today, low eighties,

will be near eighty under mostly sunny sky. Tomorrow showers likely Thursday, upper seventies. Right now sixty nine degrees in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Loving Freedom to Washington, d C, Bloomberg nine to Boston, Bloomberg one O six one does San Francisco, Bloomberg N sixty to the Country, Sirius XM chto one nine ten, and around the globe the Bloomberg Business app and Bloomberg Radio dot com. This is Bloomberg

Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow. We're just about three hours away from the open of U West Rating. Time to the five things that you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers Simple ibk our Global Trader app, deposit in your local currency and trade stocks in the US, Europe and Asia. Start your free trial at ibk r dot com Slash Global Trader.

First futures are lower following a late day rally on Walls Street. It comes as the Fed kicks off as two day policy meeting, and 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 at Bay Street Capital. Thanks the Federal race rates seventy five basis points tomorrow and join us for live coverage of the FED decision

tomorrow on special edition of Bloomberg Surveillance. It starts at one. I'm all Street time here on Bloomberg Radio and Television. Well, the FED isn't the only central bank making policy decisions this week, Karen. In Europe, Sweden central bank high grades are larger than expected hundred basis points. And 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. But a geopolitics now, Nathan, where world leaders meeting at the u n this week or in the Spotlight, 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 and the country's Foreign Minister Demetro 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 de Metro culebus oak with Bloomberg ahead of the UN General Assembly's annual meeting. Last week, President Biden announced another six hundred million dollar drawn down from US military stockpiles

to provide aid to Ukraine. And to Corporate News Now, Nathan Shares a four down about five percent in early trading after the automaker announced inflation is pushing supplier costs a billion dollars higher than expected in the current quarter. That's the five things that you need to know to start your day. Brought to you by Interactive Brokers. Again, futures are lower this morning, and straight ahead we have your latest local headlines, plus a check of sports, and

this is Bloomberg. I think your caring. It is six thirty three on Wall Street, word sixty nine degrees in Central Park dealing with an accident by the meadow Lands eastbound three in Patterson Plank Road. 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. New York Mayor Eric Adams says he will soon have a plan to deal with the bus loads of migrants arriving in the city from the southern border.

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. Adams says. The city has taken in more than eleven thousand asylum seekers and migrants while opening twenty three emergency shelters. But Adam says among the many next

steps could be litigation. We are strongly as 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 an asylum seeker who was sent to New York committed suicide over the weekend. Hurricane Fiona is barreling towards the Turks and Caicos Islands

as it strengthens into a Category three storm. The intensifying storm also kept dropping rain over the Dominican Republic and Puerto Rico. One person has died and more than a million people remain without power in Puerto Rico. In New York, Governor Kathy Hoacle 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 Hokel says the people in Puerto Rico are our fellow citizens and need aid U. N 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 Manhattan must tackle conflicts and climate catastrophes. Mexico was shaking again on the

anniversary of two devastating quakes. At least one person was killed when a seven point six magnitude quake struck Mexico specific coast yesterday. This woman visiting Mexico from Los Angeles spoke to ABC. You feel kind of like a whiplash when it's about to end, and that's the scariest filling of all, because it's like, oh God, is it? Is it happening all over again. Before yesterday's quake, Mexico held ceremonies marking the anniversaries of quakes that killed thousands of people.

On September nine, and Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan, Thanks Michael. Almost six thirty six on Wall Street, John stash Ower has the Bloomberg Sports Update, Thanks Nathan. After the Yankees spent this past weekend in Milwaukee, the Mets went there,

they took Max Scherzer off the interlist. He went for his two hundredth career victory, and the met seeking one more win to assure themselves a playoff birth. The Mets and Brewers scoreless. Fourth in here's the pitch Alonso drive to deep fill left field. This bulls there that is 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 Penn thirty six for alons O. W CVS had met the call. Mets went on to

win seven to two. Shirtzer was brilliant, taken out after six perfect innings. The playoff birth the Mets tenth in team history, first and two thousand and sixteen. Of course, they'd like to go in as Division champ for in the first round by but Atlanta continues in hot pursuit. The Braves one to have made one game behind. The Pirates just lost four times in the Mets of city field. They're still in New York. They visit the Yankees. All

eyes on Aaron Judge. The question now not so much if he breaked Roger Marris's Yankee and American Thing home run record, but when he needs three, could he do it? During this six game homestand week two is in the books. Impressive home wins for Buffalo and Philadelphia. The Bills all over Tennessee forty one to seven. Josh Allen four touchdown passes, three went to stefon dig The Titans loss means that in the a f C South, the four teams have

combined for only one victory. The Eagles easily over Minnesota seven Jalen hurts in on three Philly touchdowns just in the first half. Next Monday, it's the two and a Giant toasting Dallas, and that will come the night after the Jets welcome in Cincinnati. Angles are owing to both The losses came on last second field goals. John stactually went bloom Group Sports Nathan, Thank you John. At sixty seven on Wall Street Time Now to take a look at stock, some of the names moving in the pre

market Bloomberg Radio on TV. Markets correspondent Crety Gupta is with us this morning on a market focused on the FED and another big individual name focused on a potentially gloomy economic outlook. Creaty. I mean, that seems to be the theme here, Nathan. We started the FedEx McDonald saying it. Now you just have more and more people talking about the earnings picture instead of the macro and that seems to be where Ford is running into a little bit

of trouble. This morning, f is the ticker for the car maker down about four point seven percent in the pre market. I should mention this is in the context of futures down about four tenths of one percent, So was some extra pain in the carmaker shares this morning. It was down as much as five point two percent earlier in the session. It came as the after that he said that the third quarter supply costs were running

one billion dollars above expectations. Nathan, that is not a number to scoff at and warned that their EBIT could be in the one point four billion to one point seven billion dollar range. Basically, what that means is those supply chain issues, those inflation issues, while it is hitting them hard at a time when they're really trying to ramp up some of their EV production as well. So

this is going to cost them quite a bit of money. Remember, when you have a lot of EV production getting scaled up, you have things like chips that are required. More chips are needed for the vehicle EV vehicles than uh than ev EV's I'm gonna vs Electric vehicles. I'm sorry about that, but more chips are needed for electric vehicles than they

are needed um for for a regular engine. Um. You also need things like cobalt, things like lithium for example, for the batteries, and those are all things that are running extremely high right now, just given the global rise in commodities. And in line with that forward movie, you're also seeing General Motor shares uh, just drop on sympathy, and remember General Motors and Ford have both been trying

to kind of compete. When it comes to market cap down one point eight percent, um, GM is your taker, almost down two percent. The other one you want to keep an eye on is US listed Macau casino stocks, Nathan. They are rising in pre market rating. Where what happened? Where are we? What's going on? Well, there's so much pain here when it comes to the Hong Kong story. They're trying to be easier COVID restrictions. To remember, that is one of their major major hubs when it comes

to casino stocks. So Las Vegas stance is going to be one of them. LVS is your ticker when it comes to that company, and those shares are actually hired by three percent. And once again that is in the context of a futures market that's down four tents of one percent. A similar story when it comes to Win Resource w y n N is your ticker there, those shares also up three percent. And I'm gonna give you one last one. Nathan MGM Resorts, which is also the ticker as well as the name of the company, um

that those shares are up four tons of one percent. Okay, so one bright spot with COVID restrictions potentially eased. You gotta love it that you're looking at casino stocks on that headline. Boomberg Radio and TV Markets correspondent Pretty Gupta with us this morning, looking ahead to the market open. On Wall Street, futures are pointed lower, with SMP futures right now down fifteen points, STOUT futures down a hundred four.

NASAC futures are lower by fifty five points. In the tenure treasury is down eleven thirty seconds, the yield three point five three percent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather sunshine today, low eighties, will be near eighty tomorrow. Under a mostly sunny sky. By Thursday, we could see some showers cooler hides in the up for seventies right now sixty nine in Central Park Markets.

Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm Cameron Moscow futures lower this morning. We get to the first Word Breaking news desk for today's morning call, and here's Bill Maloney. A Bill, good morning, and good morning Karen. That's right. US futures are under pressure as the two year yield

closes in on four percent down. Futures current lay down a hundred and thirty two points, SUPs dropped nineteen well. Neza futures are off by sixty nine. The US ten yel at three point five four percent, Gold is down seven, oil is trading higher, and bitcoin is down by one point three percent. Hong Kong rose one point two percent overnight, while European markets are in the red this morning, led

by losses in France and Italy. Back in the US on the economic Frinday thirty housing starts and at building permits after develous night Ford warned on higher supply costs and a deal news. United Health won a court approval for its seven point eight billion dollar acquisition of Change Healthcare. In other news, a drastic drop in demand for crypto as a payment method has been spotted by JP Morgan in the past six months. And wrapping things up, Humanity

was raised to overweight up Morgan Stanley. Western Digital was cut over at Deutsche Bank Live from the first breaking news Tascomb, Bill Maloney care right, Bill, thank you to hear live breaking news overa Bloomberg type squawk on your terminal squ a w K and that's a Bloomberg business flash. Now here's Michael bar with more on what's going on

around the world. Michael Karen, thank you very much. Hurricane Fiona has 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 Derry today, but they are opposing one of Derry's requests Trump's legal team has refused a request by Derry to clarify actions taken to declassify material sees that the former president's Maria Lago of state. It was a Monday

night football doubleheader. The Bills down the Titans seven, the Eagles beat the Vikings seven, and baseball the Mats one, clenching a playoff birth the Nationals and Orioles lost the Giants one. Global News twenty four hours a day on air and on Bloomberg Quit Take powered by more than seven hundred journalist and analysts more than a d twenty countries. Michael Barr, This is Bloomberg. Can ray Michael, thank you

at A sixty nine on Wall Street. Returned to news and science and technology now with the Bloomberg and j I T STEM Report, brought to you buy New Jersey Institute of Technology and j I T is ranked top ten nationally on Money's Best Engineering Colleges list and what will You Make It n j I T. Learn more at n j I T dot E d U And here's just making news in science, technology, engineering, and math. The busiest port in the US is facing calls to

lower its carbon footprint. The mayor of Long Beach, California says that community is near the Port of Long Beach and the adjacent Los Angeles Port are suffering from the health and environmental impacts. Robert Garcia says there are a lot of jobs tied to the port, but the impact on the pollution side is real. To Hong Kong wants to relax COVID rules like mandatory hotel quarantines that have made travel difficult since as according to the city's chief executive,

John Lee. The South China Morning Post reports at quarantine will be replaced with seven days of home health monitoring. And ANNASA lander on Mars has captured the vibrations and sounds of four meteoroids striking the planet's surface. According to the journal Nature, Geo Science, scientists report that Mars Insight detected seismic and acoustic waves from a series of impacts in satellite orbiting the red planet confirmed the impact locations as far as a hundred eighty miles from the lander.

Scientists are delighted by the detections. First for another planet, Nuts of Bloomberg, n j I t Stem report it gets more interesting. Nathan Boom, Thank you, Karen. We're live

from the Bloomberg Interactive Broker Studios. It's almost six fifty one on Wall Street Time now to check what's going on in d C. Some of the top stories in our nation's capital include President Biden making a policy shift explicit with about a defend Taiwan, the UK's new prime minister sounding doubtful on the US trade deal anytime soon, the Justice Department calling for a month long special master review at Marra Lago, and a Texas sheriff opening a

criminal investigation into migrant flights to Martha's vineyard. Let's bring in Joe Matthew, Now, our Washington correspondent, host of sound On on Bloomberg Radio from More on what's happening in Washington, d C. Joe, So, how much of a policy shift did we hear from President Biden on Taiwan when he spoke to sixty minutes. Well, if you ask the White House,

they'd say none. And but you know this is getting to be a repeat here is It's the fourth time we've been through this with Joe Biden suggesting that the United States will actually militarily defend Taiwan if there were what he calls an unprecedented invasion from China sixty minutes said, though as soon as the interview was done, the White House reached out to clarify those remarks that it represented

no change in our one China policy. But this is getting to be, like I said, a bit of a rerun movie here, and and it's interesting as the White House tries to get its arms around this. There's an effort on Capitol Hill to codify what the President is saying in the Taiwan Policy Act. The White House doesn't want any part of this though, as it would designate the island a major non NATO ally and that would

smack of a change in policy. You know, this whole idea of of strategic ambiguity continues until you do something like that and put pen to paper. That's what the White House does not want to see. In the meantime, we keep talking in circles. Well, that's interesting because when you say that the White House is sort of pushing back against the Taiwan Policy Act, and we hear a sort of different rhetoric from President Biden. Are we're seeing a disconnect between what the what the White House is

saying and what it's doing here. And a lot of a lot of analysts see it that way. There's a disconnect. I think you could even argue inside the White House. And Joe Biden has evolved on this issue. He wrote an op ed during the George W. Bush administration UH condemning the former president for making similar remarks when George Bush said, whatever it takes to defend Taiwan, this is something that is really grating on the nerves in Beijing.

President and she gets very upset on the statement that we saw from the Foreign Ministry following Joe Biden's comments on sixty Minutes. We're stark. I mean, they're warning the United States to back off here, that this is not status quo, that this does in fact represent a change in policy, as Joe Biden not only talks about defending Taiwan militarily UH and under certain conditions at least, but also the idea that the United States is open to

an independent Taiwan. He said, we're not encouraging independence, but obviously we're there to recognize that it sounds like if Taiwan wanted to go that far. Are we expecting more developments on the U S China relationship? When President Biden heads to New York for the UN General Assembly this week. Look, it's gonna be in the air, it's gonna be a major point of discussion, But I don't think you're gonna

see any bilaterals or meetings on this. In fact, there's a lot of doubt right now, Nathan, about whether President Biden and President she will end up meeting. As we had heard just about a month ago, following these remarks on Taiwan, and what we heard from She in Uzbekistan last week when he met with Vladimir Putin. This is this is a very strained relationship and it is not warming up as we go. Well, what are we expecting

to hear from the U n General Assembly. I mean, we spoke with the Foreign Minister of Ukraine, Dimitro Clabe yesterday calling for more weapons. I would imagine that the Ukraine situation is gonna play in a pretty heavily in New York this week. It certainly will. Uh. This is the seventy seven session of the UN General Assembly, and Nathan, has been a couple of years since we've done it this way as as there have been a lot of

restrictions around COVID. So you get everybody in the room here and there's not a lot of good to talk about. We've got a war raging in Ukraine, We've got this standoff here between the US and China, We've got a potential global recession looming. And so Joe Biden's got his work cut out for him. He's not speaking today, He's gonna go later today this afternoon. He'll speak tomorrow. And one of the most important sort of tangible items that will be looking for on his schedule as his meeting

with Liz Trust. It will be their first opportunity, even though Joe Biden was in London for the Queen's funeral, this is the first opportunity to sit down and explore the future of this so called special relationship. Yeah, and interesting to point that out as well, because we just heard from the new u K new UK Prime Minister and she's sort of throwing cold water on this idea of something that her predecessor, Boris Johnson, really pushed for a bilateral trade deal with the US, and it doesn't

look like that's coming anytime soon. I think it's it's really more about what what they're hearing from Washington, and nobody's asking for that right now. In d C. And there's a bit of a reluctance to open formal negotiations with a post brexit UK here. But look, they'll probably talk about it, they'll they'll they'll probably talk about a lot of issues here. But when you do the first sit down, it's not like they were gonna be hammering

out a lot of big agreements. They need to feel each other out and hopefully UH promote the special relationship in a new way. They did have a chance to meet UH at the White House months before Liz trust became Prime Ministers, so it won't be the first time that Joe Biden is shaking her hand, but certainly as they meet as two world leaders, that will be a first kind about a minute left here Joe. Also happening in New York, of course, the Special Master review of

the documents at marl Lago. What's the latest there, Well, this is really something. First of all, we understand it's going to take about a month. That was new UH and and you know, the Special Master who was just appointed apparently be able to get through about five hundred pages a day of these eleven thousand pages. It's just

it's a massive homework assignment. But the Justice Department and Donald Trump's lawyers are now arguing about the idea here, uh that the president could have declassified these documents on his own. Remember that was his claim, but it was never specific and the Special Master would like to find

out more about that. Trump's legal team, though suggesting in writing that the former president could be indicted, is asking that this uh, this defense if you will not be answered specifically at this point in the case, the Special feel Master is going to have to go through these documents apparently on his own accord. Wow, well, if that does get done in about a month, that puts it right before the November You know, timing is everything. Thanks for this, Joe, as always good to speak with you.

Joe Matthew Are Washington correspondent, host of Sound On. You can catch it every weekday five pm Wall Street Time on Bloomberg Radio and listen to Bloomberg Radio in Washington Bloomberg and one oh five point seven FM HD two. Looking ahead to the market, open, futures are moving lower, with SMP futures down fifteen points, STOW futures down a hundred two, Nasdaq futures lowered by fifty five points. The tenure Treasury down eleven thirty seconds yield three point five

three percent. Bloomberg surveillance is straight ahead for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg