Bloomberg Daybreak: September 23, 2022 - Hour 1 (Radio)

legionnaire's disease. Plus referendums begin today in Russian occupied Ukrainian cities. I'm Michael barr more ahead, and I'm Scott Sladenburg. The chase for sixty one will have to wait another day. All that and more coming up in sports. That's all strain ahead on Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XAM one nineteen and around the world Old on Bloomberg Radio

dot Com and via the Bloomberg Business. Good Friday morning, I'm Amy Morris, I'm Nathan Hagar. Futures are moving lower this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes during the trading day. On bloomberg SMP futures are down twenty four point, Staff futures down a hundred sixty three.

Nastack futures are lower by ninety points. The tenure Treasury is up one thirty second yield three point seven one yield on the two year, four point one five British pound at one point one one against the dollar. Maymy, Nathan, it is all about the markets this morning. V S and P five is on track for a second straight weekly loss. Yesterday had closed at the level lowest levels in June ten. Your treasury yields trading near its highest level in a decade, to your rate climb for eleven

straight sessions. Ryan D. Trichet's chief market strategist at The Carson Group, September is the worst months of the year when you're week heading into it like down fifteen percent for the year like we were this year. Septembers are really really rough and can be dicey, So sure the Fed matters. We're not ignoring that, but the stage was set,

honestly for some for some potential weakness. Carson Group Chief market strategist Ryan Dietrich says the SMP five hundred is just two and a half percent above the low setback in June, and there could be more pain ahead. Amy one Wall Street firm is saying the selling is still not over. Let's get that story from Bloomberg's Lisa Matteo. Goldman Saxes slashing its year end target for the SMP five index to thirty six hundred from forty three hundred.

That implies a four point two percent drop from yesterday's close. Goldman says a dramatic shift in the outlook for interest rates moving higher will weigh on valuations for equities. The higher interest rate scenario in Goldman's valuation model supports a price earnings multiple of fifteen times compared with eighteen times previously.

Goldman said the risks to its latest forecast are still skewed to the downside because of the rise odds of recession, a scenario that would reduce corporate earnings and wide in the yield gap. However, the bank strategists say a year end rally to is possible if inflation shows clear signs of easing. In New York, Lisa Mateo Bloomberg Daybreak. All right,

thank you, Lisa. Meantime, cash is king. Bank of America strategists say investors are flocking to cash and shunning almost every other asset class as they turned the most pessimistic since the global financial crisis. The banks has cash had inflows of thirty billion dollars this week, while global global equity funds saw outflows of seven point eight billion dollars. Now we saw more losses overnight in Asia. Amy stocks in Hong Kong led the declines. Let's get the latest

from Bloomberg's Juliette Sally. In Singapore, the m s c I Asia Pacific Index posted its sixth weekly declined, the longest streak since May. Equities with down Friday in Hong Kong, China, Australia and South Korea. Japan was closed for a holiday. Alsie bondi old spiked the two year up by as

much as twenty eight basis point into the hyacinths. April twelve and the off show you one continue to hold past seven to the dollar, despite the PBOC setting a strongerly unfixed for a record twenty second day in Singapore. Juliet Sally Bloomberg Daybreak, Thanks Juliet. The stellarf is also continuing in Europe, where the region is poised for another weekly last for starts. Let's get those details live with bloom Bloomberg's un parts in London. Good morning you, Good

morning Karen Nathan. European stocks declining today at the end of a week that made very clear that central banks are not done yet. You have stocks the hundred now down one percentage points, with energy shares leading losses. Adding to that decline not for the first time, credits sweet shares slumping to a record load today. That's after the troubled Swiss bank was forced suits and I report that it's considering exiting the US markets and banking also and focus.

In the UK government's mini budget today, the cap on bankers bonuses inherited from the European Union is to be scrapped, a planned increase in corporation tax also to be scrapped, and the top rate of inc tacks that is going

as well in London. Immuno Spoobook day breaking. All right, you and thank you higher interest rates around the world have oil on track for a fourth weekly declined crude rings on track for its first quarterly loss in more than two years, as concerns about a global economic slowdown way on demand. Checking prices now, NIMEX Screwed is down two point two per center a dollar eighty five at

eighty one dollar sixty four cents of barrel. Brent is down two percent at eighty eight dollars sixty nine cents, But those losses for oil may be short lived. Some of Wall Street's biggest banks see crewed rebounding in the fourth quarter. JP Morgan Chase is forecasting Brent CREWD at a hundred one dollars about the final three months of the year. Goldman Sacks targeting one twenty five dollars. Brent

is trading around ninety dollars today. Analysts say low inventories and sustained demand will keep prices elevated despite concerns of a global flowdown. All right, let's turn to corporate news now. Amy Boeing is in focus this morning. Companies agreed to settle an SEC investigation into safety issues on its seven thirty seven Max planes. Get the details from Bloomberg's Jeff Bellinger.

Boeing has agreed to pay two hundred million dollars to settle sec allegations that the company and former CEO Dennis Mullenberg failed to disclose issues with the seven thirty seven Max jetliner. Muhlenberg will pay one million dollars as part of the agreement. Regulators say Bowing and Muhllenberg did not reveal safety problems with the seven thirty seven Max, which was involved in two crashes that killed three hundred forty six people. The twin tragedies prompted one of the longest

groundings in aviation history. Boeing previously paid a two hundred forty three million dollar fine as part of a two and a half billion dollar settlement with the US Justice Department to end a criminal investigation that was in January of one. Jeff Bullinger Bloomberg daybreak. All right, thank you, Jeff. FedEx cutting costs and increasing its rates. The giant package carrier is looking for as much as two point seven billion dollars in savings to deal with flowing demand and

a tight labor mark. Get Last week, FedEx chair suffered their worst one day and forty years after the company pointed out worsening economic conditions and the futures are worsening. This morning Amy with SMP futures down twenty five points, now to own futures down a hundred seventy Nastack futures are lower by nine points. Straight ahead your latest local headlines and a check of sports. This is Bloomberg. Thank you, Nathan,

five oh seven on Wall Street. Now we bring in Michael Barr with more on what else is going on in New York and around the world. Thank you very much, aamie. New York City's health officials believe fine people have died in the Manhattan nursing home of Legionnaire's disease. The outbreak over the past year took place at the Amsterdam Nursing Home in Morningside Heights. Authorities say four deaths have been confirmed to be connected to the legionnaire's disease. Officials are

investigating the fifth death. Florida Governor Around the Santis, is being sued by a state lawmaker for allegedly wasting hundreds of thousands of dollars and state funds to fly dozens of Venezuelan migrants to Martha's vineyard in Massachusetts and what critics have called a political stunt that tricked vulnerable immigrants. Florida State Democratic Senator Jason Piso from Miami also asked the court to stop the Santists from transporting any more

migrants to other states. Meanwhile, the Santis says about ten thousand dollars paid to an aviation company to fly migrants to Delaware has not been put to use. He was vague, though, about payments for sending migrants north. The policy is we want to voluntarily transport away from Florida so that we don't have to bear the costs, and that there's a vendor that is doing that for US. Governor de Santis made his comments at a news conference in Miami Dade.

Voting has begun in Moscow held regions of Ukraine or referendums to become part of Russia. Ukraine and the West have denounced them as shams without any legal force. The referendums follow President Vladimir Putin's order of a partial mobilization that could at about three hundred thousand Russian troops to the fight. Former US Ambassador to Ukraine William Taylor says Putin is looking for a way out of the war now that Ukrainian advances have made peace talks less likely.

He's running out of soldiers. He thinks by instituting this draft or this call up, he may be able to replace these soldiers that he's losing day after day on the battlefield. Former Ambassador Taylor spoke to ABC. NASA plans the slam a small harmless asteroid as an experiment. A spacecraft named Dart will zero win on the asteroid Monday and tent on slamming it head on at fourteen thousand

miles per hour. Scientists say the impact should be just enough to nudge the asteroid into a slightly tighter orbit around its companion, Space Rock. NASA scientist Tom Stadler, at the end of the day, the real question is how effectively did we move the asteroid and can this technique of kinectic impact be used in the future if we ever needed to. NASA Tom Stadler says the asteroid is

about six point eight million miles away. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalist and analysts more than twenty countries Michael barn This is Bloomberg Gaming. All right, thank you, Michael. Five ten on Wall Street. Time now for the Bloomberg Sports Update with Scott Seidenberg. Good morning, Amy. Yankees fans will have to wait another day before seeing Aaron Judge hit home run number sixty one.

Judge went over to last night with three walks and a strikeout, but the Yanks got the win five four over the Red Sox in ten innings on Josh Donaldson's fourth walk off hit of the season. It's the yankees sixteenth walk off win. That's one shy for the most walk off wins in a single season in the Yankees franchise history. Here was Donaldson after the game a couple

of times this year. Doesn't it doesn't disap. With the win, the Yankees officially clinched a postseason spot, and Aaron Boone becomes the first manager to reach the postseason in each of his first five seasons. The Yankees have a seven and a half game lead in the Al East over the Toronto Blue Jays. NBA news, the Boston Celtics have suspended head coach eMate Udoka for the upcoming season that team citing violations of team policies. In its announcement, Assistant

coach Joe Missoula takes over in the interim. Week three of the NFL kicked off last night, the Browns defeating the Steelers seventeen. On Sunday, the Jets will welcome in the Bengals. The Giants host the Cowboys on Monday Night Football. I'm Scott Seedinberg with Bloomberg Sports. Amy all right, thank you, Scott. Checking futures. They're lower. S and P futures down twenty six DAL futures down one two points, Nasdaq futures down one hundred points. The ten year treasury unchanged, the yield

at three point. Much more come on Bloomberg Daybreak, look at markets and risk of recession. This is Bloomberg Bloomberg eleven three oh weather. Sunny and breezy today. We're going up to sixty five degrees plenty of sunshine tomorrow, going up to seventy five and then eighty degrees with partial sun on Sunday. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quick Take. This is a Bloomberg

Business Flash I'm Nathan Hagar. Stocks and futures are extending declines at the end of a week that has underscored expectations for tighter monetary policy and a slowing global economy. We checked the markets every fifteen minutes during the trading day. On bloomberg SMP futures are down twenty five points, Stown futures down four Nasdaq futures down nine points. The stock six hundred in Europe is poised for a bear market

down one point two percent. The decks in Germany down one percent, the CAC in Paris down nine tenths percent. The foot scene in London is down one point three percent. Tenure Treasury right now little changed at three point seven one percent for the ten year yield. The yield on the two year four point one five percent. Nim X screwed is down two percent or a dollar sixty seven at eighty one dollar seventy eight cents. A barrel comes golled down seven tenths per cent, or eleven dollars forty

cents at sixteen sixty nine seventy announced. The euro point nine seven five nine against the dollar British pound one point one eight seven. The end is at one forty two point nine one bitcoin down seven tenths percent at nineteen thousand, one hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on

around the world. Good morning, Michael, Good morning. Nathan. The special master in the case of documents sees from Donald Trump's Florida home says the former president's lawyers have to state in a court filing whether they believe the FBI and line about the audience. Judge Raymond Deery told Trump's legal team that they have until September. Residents and occupied parts of Ukraine began voting today in a Russian run referendum on joining Russia. The vote has been widely condemned

as a sham. In baseball, the Yankees beat the Red Sox five four, clinching a playoff birth He came close, but Aaron Judge fell short of tying Roger Maris his a L record of sixty one home runs. The Orioles and Giants won the a's lost. Thursday Night football, the Browns beat the Steelers twenty nine and seventeen. 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. Michael Barr and this Bloomberg Amy. All right, thank you, Michael. It's five nineteen on Wall Street where live from the Bloomberg Interactive Broker's studios. This is Bloomberg Daybreak. Stocks in US equity futures extended their declines at the end of a week, underscoring expectations for tighter monetary policy and a slowing global economy. We're joined now by global market strategist Ben Laylor with Toro

and Ben, I was looking at your Twitter feed. You tweeted that report that said not all recessions are equal. Hawk is FED making US recession in out of inevitable. So what should we expect? Well, unfortunately, at this point, I think the US recession is pretty much inevitable. Um and not our word is the scariest word in finance.

But you know, not all recessions are created equal. And you know, if there is a silver lining here, it's that I think the recession that is coming in the US is going to be a sort of plain vanilla um one driven by just the FED hike in interest rates, you know, without the shots of COVID, without the sort of systemic collapse like we saw in the global financial crisis. We're just not seeing you know, imbalances like that. So the silver lining is, I think this will be a

relatively mild recession. It will be painful, but I don't think it's uninvestable. Um And I think we've you know, the other silver lining here is I think markets have priced a lot in. I think we've through the peak in inflation. I think this week we've priced in, hopefully the peaking interest rate expectations. Recession worry's obviously going through the roof, so I think we're pricing that in, and

investor sentiment, you know, it's already terrible. So I guess that's my sort of glass half full review of the world of what is has been a pretty brutal few weeks. What's driving all of this? What's driving the moves mainly? Um, I mean, what's driving it? It's just inflation is high and sticky, and the FED is responding to that, and J. Powell is channeling his some channeling his Vulcan He's responding to that, and he's basically saying he's not going to

let up until the job is done. Um. You know, that's what's been I mean, we're now pricing in four and a half percent as the peak FED funds rate for early next year. That's clearly quite a long way from where we are right now. That's what's been driving the latest move down. That's why we're getting pretty close to retesting the June lows, on on on on the

s and P five hundred. Um. I would just say, you know, let's look out for that sort of next catholyst here I mean, which is the quarter earnings which are coming up in a couple of weeks. And let's just not forget it was less bad second quarter earnings that helped drive that June rally, and I think we're being set up for something similar going into third quarter owning season. Yeah, that's what I was going to ask about. Inflationary pressures. Would they wind up easing and how long

that might take? Ah, I think it's going to take some time. If we look at inflation around the world. The problem the US has is that it's driven by a lot of these sort of stickier areas light wages like housing. So I think it's going to take some time to come down. But you know, markets are always forward looking, and you know we've priced a lot of bad news in here. I think we're beginning to see the top of the sort of interest rate cycle early

next year. And I think the sort of closer we get to that, and the more these sort of lead inflation indicators, whether it be commodity prices or just the weakening economy, begin to sort of cool off a little bit, I think I think the bull cases the markets begin to sort of sniff out um sort of top of the interest right cycle and begin to sort of price that in. I want to throw you a bit of

a little curveball if I could. You were talking about how this could be a mild investival your word of vanilla recession, But I want to ask about consumer sentiment. Wouldn't that depend on how consumers are spawn to it. If consumer sentiment then drops because of it's it's a recession, is there a risk that could wind up feeding on itself. Absolutely, there's definitely a riskless sort of becomes a sort of

self fulfilling prophecy. I guess the you know, the big picture of you is if you look at those uninvestable recessions, you know, the ones were earnings for you know, and markets do something similar. You see households which you know are carrying huge amounts of debt. You see the very weak labor markets. You see companies carrying too much debt or not being very profitable. You know your banks which

aren't well capitalized. None of those things apply here. So absolutely the consumer is going to soften and probably does need to soften for inflation to come down a bit. But I think, um again that I think is a relatively mild recession compared to some of those big uninvestable recessions we've seen, you know, as recently as as twenty twenty or or two thousand and eight. And then we've got about thirty seconds here. I just want to know what you're going to be watching for in the coming quarter.

I think the two keys are inflation, you know, I think we've seen the peak. We need to see keep drifting down to take that pressure off those four interest rates. And as I say, dug quarter oraining season, which starts in a couple of weeks, looking for us some less bad earning season to drive, to drive a little bit of relief. Similar to what we saw in second quarter. All right, thank you Ben so much for taking the time with us on this Friday morning. Global market strategists.

Then Laydler is with the Toro checking the markets now. Futures are lower, SMP down twenty seven points down, futures down, Nasdaq futures down one d one points ten. Your treasury unchanged to yield at three point seven one much want to come on Bloomberg Daybreak, Stay with us. This is Bloomberg Bloomberg eleven three oh weather sunny and breezy today. We're going up to sixty five degrees only going up to stephany degrees tomorrow, but plenty of sunshine and a

chance of rain on Sunday. Going up to broadcasting live from the Bloomberg Interacted Broker's studio in New York, Bloomberg E living free on to Washington, d C, Bloomberg nine nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixteen to the country, Sirius XM Todo one nineteen and around the globe the Bloomberg Business app in Bloomberg Radio dot com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good Friday morning. I'm

Amy Morris, I'm Nathan Hager. We're about four hours away from the open of US trading. Let's getch you up to date on the news you need to know. At this hour. The s P five hundred is on track for a second straight weekly loss. Yesterday, the index closed at its lowest level since June, as higher interest rates continue to hit sentiment. Jess meant And covers equities for

Bloomberg News technology sector, looking at discretionary shares. Also industrial companies really coming under pressure following what happened with that sell off after the Fed's move, but also more globally, this isn't even just the Fed. Investors are really trying to digest what's happening because it's been over five hundred basis point moved by global central banks right now getting aggressive to tackle what's happening with inflation, and traders really

trying to reprice. Bloomberg Jeff sment And says it looks like investors aren't expecting the FED to cut rates till sometime next year, and there could be more pain ahead. When Wall Street firm says the selling is not over Goldman Status slashing its year end target for the SMP five D thirty six hundred. That's down from forty three hundred now. With that in mind, Amy Cash is king.

Bank of America strategist say investors they're flocking to cash as they turn the most pessimistic since the global financial crisis. Jennifer Lee, senior economists with BEMO Cap the Market, says firms like hers are lowering growth forecasts, but she says there's still strength in the labor market. We've actually been lowering our growth forecast sadly like everyone else, and we've actually got euro growth now three we still have only one quarter of negative growth. I guess the big difference

here in terms of recession is the labor market. You know, anyone who has multiple job offers out there, you don't take one because it's not gonna last. This is all from personal with what happens when there's a central bank who is aggressively tightening. You're gonna see that slower growth, You're gonna see it hit consumers spending, and you're going to see the doubles rate to caire. Jennifer Lee with BEMO Capital Market says she expects unemployment to continue to

rise in the coming months. Stocks in Europe and Asia are lower this morning, so is oil Crewed is on track for a fourth weekly decline and could record its first quarterly loss in more than two years. Turning to corporate news, now FedEx is making cuts the shipping companies, slashing flights, differring projects, and closing offices to increase savings. That comes after last week's announcement that FedEx would miss earnings forecasts. And Hong Kong is announcing plans to cut

COVID restrictions, scrapping hotel coren teens for inbound travelers. Starting Monday, those flying to the city will no longer need to take a PCR test before departure. Instead, a rapid test will do. However, they still need to take a PCR test upon arrival in Hong Kong. It's a sign that more easing of COVID restrictions could soon come to the city. Now, let's get to these latest red numbers. Amy SMP futures are down thirty one point, style futures down two nineteen

NASTAC futures down a hundred fifteen points. The tenure treasuries down four thirty seconds yield three point seven three cent yield on the two year, four point one six straight ahead, your latest local headlines, and a check of sports. This is Bloomberg. Thank you, Nathan, five thirty three on Wall Street. Let's bring in Michael bar with more on what else is going on in New York and around the world.

Good morning, Michael, Good morning Amy. Health officials suspect five people have dying in the Manhattan nursing home of legionnaire's disease. The outbreak over the past year. It took place at the Amsterdam Nursing Home in Morningside. Heights for deaths have been confirmed, while a fifth is being investigated. Residents in Russian occupied parts of Ukraine began voting today and a referendum on joining Russia. The vote has been widely condemned as a sham. It comes as Vladimir Putin called up

three hundred thousand reservists to fight the war. Former US Ambassador to Ukraine, William Taylor says Putin is looking for a way to bolster support for the war inside Russia. This is because Putin is losing support for this war that he wants to do some sleight of hand that says, well, actually this is really Russia. So now it's really the Ukrainians and the West against US. Former Ambassador Taylor spoke

to ABC. A man charged with assault for allegedly slapping former New York Mayor Rudolph Juliani on the back and using a derogatory term filed a notice of claim against the city for two million dollars for false arrest. Daniel Gill was seen on a video in June touching Juliani on the back with an open hand while Giuliani was at a Staten Island shop rights wh Per Market supporting

his son Andrew's campaign for New York governor. According to the notice of claim, Gill was jailed for more than twenty four hours and lost his job at the market. Hurricane Fiona has founding Bermuda with heavy rain and winds as it sweeps by the island. Forecasters say it is still on track to approach northeastern Canada as a still powerful storm late today. A new poll shows, despite his

legal issues, support for former President Trump remains unmoved. According to a New York Times Siena College survey, about forty four percent of voters viewed Trump favorably, about the same as an earlier poll in the summer. Meanwhile, Republicans strategist Doug High discussed the release of the House Republicans Commitment to America agenda ahead of the midterm elections. I think Republicans have opportunities here to define themselves on three issues

even further inflation, UH, crime, and the border. And if if we're if the conversations on those three issues, even if Republicans don't have a fully fleshed out plan on inflation they don't and neither does the White House, then if that's what we're talking about, Republicans are going to do well. GPS trying to just duck. I spoke on sound On, which hairs at five pm on Bloomberg Global News twenty four hours a day on air end on Bloomberg Quick Take, powered by more than twenty seven hundred

journalists analysts more than a hundred twenty countries. Michael bar this is Bloomberg Gaming. All right, Thank you, Michael. It's six on Wall Street. Time now for the Bloomberg Sports Update. Here Scott Seidenberg, Good morning, Amy. Some excitement in the Bronx last night, as fans thought Aaron judge head home run number sixty one, although it felt shy being caught at the wall. The Yankees would go on to win in tenantings over the Red Sox five four, thanks to

Josh Donaldson's fourth walk off hit of the season. Here was Aaron Judge after the game. I was hoping maybe it was blowing out in the time I was hiding, But you know he just missed it. But I'll lined up for a nice little Jad walk off us for sure. It was the sixteen walk off win for the Yankees this season, one shy of the most in a single season in franchise history. Tonight, Judge will get another crack at number sixty one when the Yankees and Red Sox

face off again. Garrett Cole gets the start Rich Hill for the Red Sox. NBA Who's The Boston Celtics have suspended head coachma Udoka for the upcoming season the team's citing violations of team policies in its announcement. Assistant coach Joe Missoula takes over in the interim. Week three of the NFL kicked off last night, the Browns defeating the Steelers seventeen. On Sunday, the Jets will welcome in the Bengals. The Giants host the Cowboys on Monday Night Football. I'm

Scott Seedinberg with Bloomberg Sports. Amy all right, thank you, Scotti seven now on Wall Street time for the Tri State Business Report. Here with that is Bloomberg's head Cory. In a letter to black Rock CEO Larry Fink, New York City's controller says he's reassessing the Big Apple's business with the asset management company. The reason, brad Lander claims black Rock abdicates responsibility and not pushing corporations to do

more to fight global warming. Women who work for the New York City government see an even bigger gender pay gap than the average worker in the state. Report from the New York City Council says female municipal employees make about seventy three cents for every dollar paid to mail workers. Beginning October third, Newark Liberty International Airport will no longer be considered a New York City airport by the I A t A. Airlines will not be required to give

passengers options to or from the other two New York airports. Currently, many airlines offer passengers the option to change flights within a city code without a penalty. That your Bloomberg trying state business report. I'm d Corey, Thank you Ed 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 refiliate radio stations

around the world. I'm Steve Podas kan K and EX in Los Angeles. We're talking about a top Fox Enter England executive jumping to Rokum Corney's Anaho on w h A S and Louisville. FedEx is cutting flights and deferring projects to save money. I'm Gina Servetti and for double w BBM in Chicago, I'm reporting that the city comes in twelve final list of the world's top twenty financial centers. I'm Stephen Carol on Bloomberg d A B Digital Radio in London. We've been reporting on massive tax cuts being

announced by the UK's new Chancellor, Quasi Quarte. I made Corey on w w J in Detroit. I'm reporting Michigan's first self board tap room opens next month in Royal Oak Those are some of the stories are twenty Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This sedaitorial was written by

Bloomberg Editorial Board. The campaign by several Republican governors to transport asylum seekers to Democratic controlled areas such as Washington, d C. Has been a national embarrassment. Whatever point Republicans may have had about migration, they have forfeited their moral authority by treating vulnerable people as props. But while President Biden has rightly denounced the relocation stunts, his administration and the Democratic controlled Congress should do more to fix the

underlying problem. They can start by boosting support for the Federal Emergency Management Agency's Migrant Assistance program and fixing the nation's perennially underfunded immigration courts. Biden might not want to call attention to the issue in an election year, but it's his responsibility to work to fix it. The editorial was written by the Bloomberg Editorial Board. For more Bloomberg inn please go to Bloomberg dot com, Slash Opinion or opie I n go on the Bloomberg Terminal. This has

been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every weekday at this time, and terminal customers can read more at Opie I n Go. Futures are lower. This is Bloomberg Bloomberg eleven three oh weather sunny and breezy today only going up to sixty five and then seventy degrees tomorrow with plenty of sunshine. Could see some rain on Sunday going up to seventy five degrees. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com,

the Bloomberg Business at and at Bloomberg crick Tape. This is a Bloomberg Business Flash Nathan Hagar. The dash to cash continues this morning, with futures and stocks extending declines at the end of the week, underscoring expectations for tighter monetary policy and a slowing global economy. Bloomberg Dollar Index has risen to another record tenure. Treasury yields are holding

near their highest level in a decade. We checked the markets every fifteen minutes during the trading day on Bloomberg. Right now, SMP futures are extending their declines down thirty five point. Stawle futures down two fifty two. NASDAC futures down one point one percent, a drop of a hundred twenty nine points. The decks in Germany is down one and a third percent. Cat in Paris down down one point one percent. The tenure treasury is down eleven thirty seconds.

The yeld three point seven six percent yield on the two year now just shy a four point to one. Nimex screwed down two point one percent, or a dollar seventy five at eighty one dollar seventy three cents of arrol comes gold is down nine tenths per cent, or fifteen dollar sixty cents at sixteen sixty five thirty announced. The euro point nine seven four four against the dollar, the British pound one point one zero nine eight. The end is at one forty three point one nine and

bit point right around nineteen thousand dollars. That's a bloomberg business flash. Now here's Michael Barr with what else is going on around the world. Michael, thank you very much. Nathan and Russia, traffic is jammed at border crossing and crowds are packed at airports. Most of those trying to get out our young men of military age fleeing Vladimir Putin's draft after he called up three hundred thousand reserves for the war in Ukraine. Protests were also taking place

in the streets. In the NBA, the Boston Celtics suspended head coach in the Udoka for a year for violating team policies. In baseball, the Yankees beat the Red Sox five for clinching a playoff berth. It hit the warning track, but Aaron Judge fell short of tying rogermarrass a l record sixty one home runs. The Orioles and Giants won the A's lost. Thursday Night football, the Browns beat the

Steelers twenty nine seventeen. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyst more than a hundred twenty countries. Michael Barn this is Bloomberg Gaming, all right, Thank you, Mike Well. It is five forty nine on Wall Street, Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. The Federal reserves more hawkish stance reflects

more tightening to come, we get market reaction. Now we turn to global market strategist Brian Leavitt at Investco. Brian, good morning, Thank you for taking the time with us today. So what is next four markets after this fat decision? What's your takeaway? I think we have to be realistic about the near term. We we have challenges now just because we're just because of these challenges, I still think we want to be have more optimism over an intermediate term,

call it six months to two years. What we need to see here is for inflation to come down more rapidly in the Federal Reserve to be able to provide more clarity on what the terminal rate is going to be for the Fed funds rate. Until we get there, we should expect volatility and markets policy and certainty creates market volatility um, and we should expect some pressure on equities because said is tightening to a week weakening economic environment, and you know that starts to create some some um

likely recessionary output outcomes. So it's a challenge. Um, we'll get through it, but but it's certainly a challenge in the news term. Now, you called this, you anticipated the stricter policy stance from the Fed after the latest CPI report. So what do you anticipate comes next? How much tighter can they go? You mean at some point, um, you know they're they're going to tighten the Fed funds rate to above where the core personal consumption expenditure is on

a EUROBA your basis. Um. I know a lot of people look at core CPI, but the core pc IS is already in the mid fours on a EUBA your basis. So you know, the markets pricing in a terminal rate of call it four six, um, So we're getting there to pricing it in. And my expectation as inflation will start to come down. You see in the bond market, I mean that the break evens um, the tips break even to the bond markets expectation for inflation are all

the two percent range across maturities. So look at the process. This is a unique pandemic cycle. Too much stimulus has now led to too much tightening. Um. You know it's it tends to bring forward recessions ends of cycles unfortunately. UM. But there will be another side to this. I know we got word this morning Goldman slashing it's year end target for the SMPTY and they're blaming the FED rate trajectory.

But I wonder if you agree with that. Well, we're almost there, right, I mean, if you look at the SMP, we're in the thirty seven hundred range. UM. I think thirty six hundred is a reasonable one. You know, if you if you consider that earnings are still climbing, peak earnings are likely to be around to twenty in a recession, they tend to follow out, so that would take you to around one eight on earnings UM, And then what ultiple are you willing to pay for that UM? When

interest rates are going up, there's pressure on multiples. If if the economy starts to slow more meaningfully, which we suspected will, rates will start to come down UM, and multiples can start to go up. So you think are at one eight UM with a twenty multiple, then you're looking at thirty six hundred. Of course, if rates stay, if inflation stays elevated, and rates stay higher, than I think that multiple goes down. So that's the challenge right

now in trying to consider a bottom. But but I do understand that thirty six hundred number UM, and and quite frankly we're moving closer to that. I think quicker than people have expected. All Right, Brian, thank you so much for taking the time with us on this Friday morning. Brian Leavitt, Global market strategist at Investco. Nathan all Right, Amy, thank you. It's three on Wall Street. Time for our Bloomberg Law Report, brought to you by American Arbitration Association.

Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a d R dot org. Let's get to the legal stories we're watching this morning. Here's Bloomberg's Jeff Bellinger. Bloomberg Law reports the compromised deal that averted a nationwide rail strike includes a concession allowing unpaid but job protected

medical leave. Washington d C Is suing Liberty Tax. The district accuses the tax prep service of misleading low income taxpayers with deceptive offers. A federal trial court barred Rhode Island from operating a unique bridge polling system that would have targeted large commercial trucks registered in other states. 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. Now another legal story we're watching. The Justice Departments want a critical attle and its dispute over about a hundred documents with classified marketings seized from

former President Donald Trump's Marral Law go home. The Eleventh Circuit Court of Appeals, one of the most conservative appellate courts in the country, put a Florida federal judges order on hold, ordering that the Justice Department can use the materials and its ongoing criminal investigation into whether Trump mishandled

sensitive government records after he left office. For more, Bloomberg's June Grosso speaks with national security law expert Bradley Moss, a partner at Mark's Aid, explain why did this three judge appeals court panel with two judges nominated by Trump intervene here? This was the Eleventh Circuit bringing everyone back to reality on what the case law actually says and

how this is actually supposed to work. Mainly, this was a civil litigant Mr Trump, who is now a private citizen, suing to try to regain access to a control over records that had been seized from him by the FBI pursuance to a search warrant, and in the particular context of this appeal, it concerned one documents with classification markets.

At no point in the lower court litigation had he ever provided any evidence that the documents were not classified, that he had declassified him, or that the markings were

not valid. The burden was on him, and all of the case law that applies in this context, most of which has been dealt with in the context of either Breame Information Act or First Amendment litigation for manuscripts of former employees, always makes clear that the burden to gain access to documentation that the government still thinks it is classified, that burden is going to be on the plaintiff to

disprove essentially that the classification is valid. And Mr Trump had never done anything to create a genuine issue of material dispute on that front. That's why the Circuit intervened. Did you see a review to Trump here, the panel said, quote. For our part, we cannot discern why the plaintiff would have an individual interest in or need for any of the one documents with classification markings. I saw it as more of a very polite and professional rebute to Judge Cannon,

more so than to Mr Trump. Mr Trump is trying to put forth whatever arguments he can, which is why he civil litigan does in this context, trying to create a material controversy in order to try to delay in gain access to the records. The judge, Judge Cannon, should have known better. And that's what the Eleventh Circuit I think was really focusing on. It was more of a response of what were you thinking here? There's no possible basis in law for him to have a possessory interest

in these documents. That's Bradley Moss, a partner in marks Ad, speaking with Bloomberg's June gross How. Catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show at Bloomberg dot com. Slash pod casts and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b law Go. SMP future is down down thirty one point, Style futures

down two twenty seven. Nasdaq futures are lower by a hundred fourteen points. Germany's decks down one point three percent. The cat in Paris is down one point one. The foot scene London down one point six percent. The Tenure Treasury is down nine thirty seconds. You'ld three point seven five percent yield on the two year four point one nine Nimex crewed down two point one percent or a dollar seventy five at eighty one dollar seventy six cents. A baril Comex Gold is down eight tenths percent at

sixteen sixty six seventy announced. The euro point seven five eight against the dollar British pound one point one one two six. Bloomberg day break continues. This is Bloomberg