Bloomberg Daybreak: September 27, 2022 - Hour 1 (Radio)

Double Line Capital's Jeffrey Gunlack thinks the worst global bond route in decades maybe over, and traders increased bets the pound could fall to parody with the dollar hurricaney and his gaining strength as it heads toward Florida. Plus, we've learned that it was a small tornado that sets down late Sunday on Long Island. I'm Michael barn More. I'm down fash Our in sports, the Giant Stuff for their first lost being Yankees lost in extrainnings in Toronto. That's

all s Tradyhead on Bloomberg day Break on Bloomberg. He live in Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nine team and around the World Old on Bloomberg Radio dot Com and via the Bloomberg Business App. And good morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg Daybreak is brought to you by SEI. Asset managers don't get results that are off the charts when their

solutions are off the shelf. Learn how SEI is operating platform can turn infrastructure into a competitive advantage at s E i C dot Com, slash Tech and US futures are higher this morning five oh one on Wall Street. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SMP future is up thirty nine points. DAL futures have two hundred forty five and NASDACK future is

up on thirty nine. The decks in Germany is up a quarter percent and the tenure treasury of twenty three thirty seconds three point eight two percent Nathan Karen. The rise in futures this morning follows the lowest clothes for the SMP five hundred since December of twenty twenty ten. Year treasury yields are holding their their highest level since while the dollar has snapped a five day gain still.

Daniel Gerard, multi assets strategist at State Streets sees more strength for the dollar ahead as we get more bad news that's going to really hit the earnings growth and the earning growth potential, margins, etcetera. And there were just isn't um. There aren't a lot of good stories to find out here, and I think that we're in a relative world. We've got to do our best. But US dollar looks like the uh the asset to hold right now,

State Streets. Daniel Gerard favors equities over bonds going forward well as fears of a global recession continue to swirl. Nathan, we have a couple more bearish calls on equities this morning, and we get the details from Bloomberg's Lisa Mateo. Goldman Sacks and black Rock are both warning that markets are yet to price and the risk of a global recession. Goldman strategists, flagging rising real yields as a major headwind, cut equities to underweight in the US investment banks global

allocation over the next three months. It's staying overweight in cash. Meantime, black Rock is advising investors to shun most stocks. It's that it is tactically underweight developed market shares and the first credit in the short term. In New York Lisa Mateo Bloomberg Daybreak, Lisa, thank you. The turmoil and market shows little sign of turning Fed officials away from hawkish policy.

Boston Fed President Susan Collins and her Cleveland counterpart Lorette Smester say additional tightening is still needed to slow inflation. Here's Collins in her first public speech since taking office. Returning inflation to our two percent target will require further tightening of monetary policy, as signaled in the recent f O MC projections. It will be important to see clear

and convincing signs that inflation is falling. At the same time, Boston FED President Susan Collins says it is quite likely inflation may have peaked. Well, there's at least one major investor who thinks the worst global bond route in decades is creating a buying opportunity. Nathan and a tweet double line Capitals. Jeffrey Gunlow says, quote the US treasury bond market is rallying. He says he's been dying. The British pound is stronger today, Karen, after hitting a record low

on Monday. Still traders are increasing bet sterling could fold a parody with the dollar. Let's go to London and get the latest with Bloomberg's Human Parts. Good morning, Karen, Nathan. The pounds and guilt recovering some ground today after that historic sell off. Sterling rallying after collapsing to a record

low against the dollar on Monday. The UK markets still vulnerable after the plunge that followed when new Chancellor quas quarteing unveiled the country's biggest fiscal giveaway in half a century. He said to meet top bankers later today. It may not be the warm reception that he was originally hoping for in London. I'm you and parts sploom Boke, daybreak for you and thank you and Asia. Overnight, starks traded slightly higher despite yesterday's sell off. In the US, we

get the recount from Bloomberg's Juliette Sally and Singapore. Good morning, Juliet, Good morning Karen. A gage of the region's equities fluctuated as shares edged higher in Japan and Australia, while Hong Kong stocks traded at an eleven year low. Bonds from under pressure in Australia and Japan, where the yield on the twenty year topped one percent for the first time since, prompting the Bank of Japan to announce another unscheduled bond buying operation, this time at the long end in Singapore,

Juliet Sally Bloomber daybreak. All right, Juliet, thank you. Back here in the US, gasoline prices have fallen from their peak this summer, but they're still weighing on the White House, and that has President Biden sending a message to fuel companies prices now. President Biden spoke at a meeting of his White House Competition Council. Oil prices fell more than nine percent last month. Gas has followed suit, but the President says prices are uneven across the country, especially in

the West, due to low refining capacity. Checking oil now NIMEX crewed is up one percent, or eighty nine cents at seventy seven dollars sixty one cents a barrel. Brent is at eighty five dollars fifteen cents meantime on Capitol Hill and they than the possibility of a government shutdown looms this week and now Senate Democrats have released a short term funding bill to try to avoid a shutdown. Bloomberg's Amy Morris has the details from our newsroom in Washington.

The bill would keep the government open through December sixteenth. It includes a measure that will speed up energy project permits, something that's opposed by Republicans and some Democrats. Congress can strip that out if it's a deal breaker. It provides twelve point four billion dollars in Ukraine aid. It includes two billion dollars for disaster aid and another billion dollars for home heating assistance. It allows the FDA to collect user fees for five years to prevent a funding shortfall

at the Food and Drug Administration. Congress must pass the measure by midnight Friday in Washington. I'm Amy Morris, Bloomberg Daybreak. All right, Amy, thank you, and incorporate news of Biogen whistleblower will collect almost two undred fifty million dollars for exposing a kickback scheme. The company agreed to resolve the matter by paying the US and state government's nine hundred million dollars. The False Claims Act allows individuals to sue on behalf of the US and get a cut of

any money received. Right now, SMP futures are up thirty four points down, futures up two twenty NASTAC futures are higher by a hundred twenty four points, and the tenure treasury is up one seconds. The yield three point eight three percent. Straight ahead, your latest local headlines and a check of sports. This is Sploomberg. It's south five oh seven on Wall Street. We're at sixty two degrees in Central Park. You've got a broken down vehicle on the

southbounded Jersey Turnpike truck lanes. Bags at ten. 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. Hurricane Ian is gaining strength thick Cuba on a path towards Florida. It is threatening to become the worst storm to hit Tampa in over a century. The National Hurricane Center says Ian is now a Category three storm. Mandatory evacuations are in parts of Florida. State

Emergency Management Director Kevin Guthrie is in Penellas County. We do have telephone companies on standby ready to for a critical cellular service of power's loss, but in the meantime, Florida should be prepared to have a communications plan in place with her families. Bloomberg meteorologist Rob Caroline has the latest on Ian Michael. Hurricane Ian made landfall over western Cuba earlier this morning. Is a major hurricane with sustained

winds of a hundred and fifteen miles an hour. It will re emerge in the eastern Gulf of Mexico later this morning and then restrengthen and work its way up towards the Tampa area. Looks like it will be making landfalls somewhere in Pinellas County late Wednesday night or early Thursday morning, and the problem with the storm is it will be very strong at that time. It's also going to stall out, and it looks like it is going to rake the Tampa area for maybe twenty four to

thirty six hours with high winds, heavy rain and storm searches. Michael, Rob, thank you, sir. We're learning that a small tornado touchdown on Long Island last Sunday night, the National Weather Service says and e of zero twister hit part of the Suffolk County area around eleven pm. They say the tornado had an estimated peak wind of about seventy five miles per hour. When he hit the town of Matatuck, no

serious damage. Five days after President Vladimir Putin announced the partial mobilization to call up hundreds of thousands of reservists to fight in Ukraine, the move continues to trigger outrage protests across Russia. It has also led to an exodus of men of fighting age from the country and acts of violence. NASA deliberately crashed a dark spacecraft into the small moon of an asteroid seven million miles away from

Earth in an attempt to change its orbit. Planetary scientists Emily Lackadoo says that this is the first time that humans have altered the path of another object in the Solar System. Well, this one poses no threat to us. It does give us the first experience and understanding how we could prevent a civilization devastating threat if discovered in the future. Pardon the Planetary scientist Emily Lackadawa says it will take NASA a couple of months to determine exactly

how much the asteroids path was changed. Global He was twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenties seven hundre. Journalist and analysts more than a twenty countries. Michael Barr, This is Bloomberg Nick. Thanks Michael. Just about five ten on Wall Street, time for the Bloomberg Sports Update with John

Shower Banks Nathan. The Giants we're looking for their first three and stars in two thousand nine and when s Kwan Barkley score in the thirty six yard run on the third cour of the Giants at a seven point lead, but Dallas score the next seventeen and the Cowboys won three to sixteen, both teams with two and one. Big Blue done in by a familiar problem, the inability to protect the quarterback. Daniel Jones was sacked, hit, or at least harassed over twenty times. Jones was coach is Brian

day Ball. He did a good job, so he made a lot of loose plays. I only had what about eight yards Russian. I thought he did a good job keeping his eyes down feel when he could get out. You know, he made a couple of plays there at the end. You know that we couldn't quite convert on and hit some drop passes. Um you know the last play that that Digs picked off show spell down and it was a time and throw that was the interception

that sealed the win for the Cowboys. It was the only turnover of the night, and on that place, Sterling Shepard suffered a serious knee knee injury appears to be season ending. The white out is the longest tenure Giant. He has made it back from an achilles injury suffered last year. The NFL and has no more Pro Bowl. They'll play a flag football game, have a skills competition instead. Ain't Toronto. The champagne that was on ice and the Yankee Lapper Room will have to wait to be pop Cophen.

The Yanks did not clinch the a l East. He had a too nothing lead but lost in a let of ins in the Blue Jays three to two ends the Yanks seven game winning drink. It's the sixth rate game where Aaron Judge has noted a home run. His mother and Roger Marris June will be back again tonight. See if Judge hits home run number sixty one to time Harris. Atlanta want eight nothing at Washington, so with eight games ago, the Braves are one game behind the Mets,

who hosts Miami tonight. They'll go to Atlanta this weekend. That will obviously go a long way towards deciding who wins the division. Johns Gashawer Bloomberg Sports, Nathan all Right, John, thank you. Futures are moving higher after yesterday's big drop. We check in neck so Jeff you of b n y Melon. This is Bloomberg Bloomberg eleven three oh weather mostly sunny, low seventies today, mid fifties tonight, little cooler in the sunshine tomorrow with the high near seventy, upper sixties.

Mostly sunny on Thursday. Right now sixty one in Central Park. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com of Bloomberg Business Outland at Bloomberg Quick Take, this is a Bloomberg business lash and I'm Karen Moscow. And global markets are made on edges. Investors race for a heightened risk of global recession even as dip buyers emerge. Stocks are mixed as Goldman, Sachs and black Rocks sour inequities for the short term, and city groups said bearish

position and continues to rise. Europe stock six hundred rebounding with US stock index futures, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg Guess and p futures, they're higher up thirty two points, DAL futures up one hundred ninety one and nastag future is up a hundred twenty three. That's up one point one per cent, and the decks in Germany's up to tenths

of a percent. Ten year treasury of twenty thirty seconds, he'll three point eight four percent, the yell done the two year four point to seven percent. Nine x Screwede oil is up one point one percent of eighty seven cents at seventy seven dollars, fifty eight cents of barrel comes gold up half percent or eight dollar sixty cents at sixteen forty two an ounce. The euro point nine six two three against the dollar, British pound one point oh seven eight six and a yen one forty four

point four three. I'm looking at it. Bitcoin it's up more than five percent at twenty thousand, one hundred thirty dollars and as of Bloomberg Business Flash now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning, Karen. Hurricane and makes landfall in Cuba on routes of Florida's West coast in as a Category three storm and is forecast grow into a Cat four with top winds of one hundred forty miles an hour.

In Japan, world leaders and members of the public are paying tribute to former Prime Minister Shinzo Abe, who was assassinated in July, but thousands are protesting the large scale state funeral, saying taxpayer money should instead be used to address widening economic disparities they say were caused by Abe's policies. In Monday Night Football, the Giants lost with Cowboys twenty three sixteen. In baseball, the Yankees lost to the Blue

Jay's three too and ten innings. Aaron Jodd still stuck at sixty home runs as he chases Roger Merris sixty one a l record. The Orioles beat the Red Sox fourteen eight. The Nationals lost. Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than dred journalists analysts more than a hundred twenty countries. I'm Michael Barn, this is Bloomberg. Nathan all right, Michael, thank you for coming up to five twenty on Wall

Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we're joined now by Jeffrey You, senior strategist at b n y Melon. Do you see a bit of dip buying in this mark it after yesterday's

continued route, jeff would you buy this? Well? At this point, I think it's some better to um air on the side of caution, right So a buying a dip sentiment right now is I'm just reflection that we've had three trading days of I wouldn't call cartnerge, but no quite a bit chaotic ever since the Waker, the stead decision, so intervention from the Bank of Japan, and we've had the supposing mini budget, you know from the UK government, and the lack of a high guest today from the

v o E. So Marcus and we're sawing around. You're right at But ultimately, if you think that the FED is going to go very high in sraterminal rates and say there, then your bias should be towards the downside and risk aside. Now, what's your car and what the FED is going to do in the next few months. One of the FED few in the next few months of the first time, we actually think the market pricing for the FED heading towards five percent terminal and that's

where we think the FED will head to. That is just about adequate and the next phases, of course states independency. If the FED um start to observe that data is decelerating, you know, let's take a cue from durable goods today and for example, then you know, maybe markets will start to price in a slowdown or an easy or something like that. We would still push back against those things. You know, we're going to stay eternal for some time. Um, but maybe the narrative can start to change from there

into how high the Federal will high too? How long will the FED stay at very high levels? So would you push back against the narrative that we're hearing now from Goldman Saxon, black Rock. Both of those banks have soured on equities, both saying that the risk of a global recession hasn't been fully priced into this market. UM, I would separate those two things, you know, because of the US is so separate, you know, from how the

rest of the world is behaving right now. So if we have a global recession, that's the key word that how much would impact the US as a global non US recession directly and push the US into a recession. We want to go that far yet, Having said that, equity is relative to inflation, may be relative to discount rate from right now still, um, I wouldn't say expensive, but certainly not cheap yet. So further downward adjustment is definitely possible. But I think the narrative of peak rates, um,

now that is a bit more justifiable. It's a question of how long are we going to stay at peak rates? And I think that's going to be longer. Level markets are anticipation right now, where are you expecting the market

to bottom out at? You have a level on target for the sp no major targets, you know, at this some point, right, so we always know go convergence and there's always dynamic and of inflation you know, comes off faster than expected, then we would actually start to say, okay, then maybe at around these levels the mess and people be adequately by the price. Right, So it's not just a price versus earning story. It's a relative to the

wider macro fundamentals. The one thing we all say is, you know, for international investors, they're looking at the dollar right now and they're asking when is the dollar going to peek? And that will start to impact as allocation into the US. Are more hedges going to take into place to people want to take the exerty risk but not the dollar risk. This will start to come up

the radar very very soon international investors. Of course, there's a lot of attention on the pound right now, inspect reculation about whether sterling is going to reach parody against the dollar. Do you think that's a possibility. Absolutely, it's a pulp It's absolutely a possibility. You know. I've also my views on this sun because right now, in one word, we need transparency. We need transparency you know, from the

Treasury on how this is going to be costed. And yesterday the statement was released by I believe the end of November we are going to see a full costing you know of the tax cuts. But that's going to be after the next Bank of England decision as well.

So even if you don't believe that Bank of England are going to do an inter meeting, hike that even still, you know, the November meeting, the bobs heading into that without full information, right so the bias is going to be towards in their caution um and selling of guilt higher inflation expectations. So we just need to hear more from the government on how all of this is going to work out. Until then, I don't think people are

going to be dashing back into the pound. Are you looking for even more of a jumbo interest rate hike from the Bank of England than the jumbo hikes that they've already delivered? Yes, yes, right, because you know with the status quo, the amount of jump tho stimulus that is being delivered, then you are going to need a jumbo hike, you know, to offset back all right's restrain conditions. So market is pricing into and the basis points by November.

I think that is adequately at this point that they probably definitely needs to go into the triple digits at least, if not more um and if not then certainly a sterling riskers into the downside. Of course, if there's some adjustments in the fiscal plan then we can discuss, but as they stand, we need a jumbo heights offset a jumbo stimulus. So good to get your thoughts this morning, Jeff,

really appreciate you having to come on with us. Jeffrey, you, senior strategist at B and Y, melon with us this morning as we watch futures continue to move higher after yesterday's drop. SMP futures are up twenty nine points down futures have a hundred seventy one and NASTAC futures are higher by a hundred nine points. The tenure treasury getting a bit up twenty thirty seconds, yield three point eight three percent, and the yield on the two year right

now two or four point to seven percent. Checking the British pound one point zero seven nine one against the dollar. You're listening to Bloomberg day Break Bloomberg eleven three. Or whether sunshine low seventies today will get down to the mid fifties tonight a little bit Cooler's still sunny tomorrow with a high near seventy, upper sixties by Thursday. Right now sixty one in Central Park, broadcasting live from the

Bloomberg Interacted Broker Studio in New York. Bloomberg E living freed to Washington, d C. Bloomberg nine to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM tod A one nine team, and around the globe, the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow. We're 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 at this hour. Global markets remain on edge as concerns swirl about a global recession. Futures are higher following the lowest clothes for the SNP five in December. Bononds remain under pressure from the worst selloff in decades or the ten year treasury yelled, holding near the highest level since meantime. The British pound is stronger today care and after hitting a record low Monday.

Still speculators are betting sterling will slide to a level virtually unthinkable in recent decades a dollar or even less. Kit Jukes his chief Effects Strategistic associated General. This is a loss of confidence, at least to some degree, in policy because normally, I mean President Reagan and Paul Volca managed to put rates up in the enormous amount of Theese fiscal policy dramatically and sent the dollar to the moon. At one level, the UK Chancellor in the Bank of

England doing the same thing. I'm sending you out to the floor. Those comments from kid Jukes come as bets against the pound now show a forty three chance of parody with the dollar before year's end. Meantime, Nathan Goman Saxon black Rock are turning more bearish on US equities, at least for the short term. Both were in that markets have yet to price in the risk of a global recession. Coleman is cutting equities to underweight over the next three months, black Rock is advising investors to shun

most stocks. And the turmoil and markets shows little sign of turning FED officials away from hawkish policy. Karen Boston FED President Susan Collins and her Cleveland counterpart Lorettamester say additional tightening is still needed and here's the latest roew of Frommester. So the FMC is committed to using its tools to bring inflation back down to our long run golf two percent. Last week, we took another decisive action to remove monetary policy accommodation. We raised the FED funds

rate by seventy five basis points. Cleveland Fed President Lorena Master says she'd like to see inflation cool for several months before concluding that it's peaked. And there's at least one major investor who thinks the worst global bond route in decades may be ending. Nathan and a tweet double line capitals. Jeffrey Gunlock says, quote, the US treasury bond market is rallying, and he says he has been buying

futures this morning. As we said around the rise. SMP futures up almost twenty eight points down, futures up one hundred sixty one, and NASDAG futures have one hundred five. They are off their highs in the morning. The decks in Germany is up tenth of a percent. Ten. Your treasury up twenty thirty seconds. You have three point eight four percent and a yield on the two year four point to seven percent. Nine Max Scrude oil is up one percent or seventy nine cents. It's seventy seven dollars

fifty cents of barrel. The euro point nine six one nine against the dollars. Straight ahead, your latest local headlines, plus a check of sports and this is Bloomberg. Thanks here in five thirty three on Wall Street sixty one degrees in Central Park. Out of crash, he's found Nassau Expressway at the Van Wick More coming up on that in traffic first Michael Barr with what else is going on in New York and around the world. Michael, thank

you very much, Nathan. Hurricane in has made landfall in Cuba as it roars on a path that could see it hit Florida's west coast as a Category four Hurricane Ian is now a Cat three as its forecast to hit Florida by late Wednesday early Thursday. It's threatening to become the worst storm they hit Tampa in over a century, and Key West Mayor Terry Johnston says FIMA has been

deploying food, water, and generators to the storm zone. We have started our preparations about two days ago, and of course all of our residents are buttoning up their homes and that including storm shutters and taking anything that could be a flying projectile and high winds out of their yard.

Mayor Johnston says they have shut down city home. We're learning that a small tornado touchdown on Long Island last Sunday night, The National Weather Service says an e F zero twister hit part of Suffolkone in the town of Mattatuck, no serious damage. Vice President Kamala Harris continues their Asian trip today, meeting with regional leaders in Tokyo, Japan and attending the state funeral of assassinated Japanese Reministration Zohabe last night.

In fact, we celebrated his life with a dinner that was hosted by the current Prime Minister of Japan, where there were wonderful stories being told by people who spend time with him about his life and his legacy. However, more than half of the Japanese public opposed abbe state funeral over the cost and the close ties that have emerged between Abbe and more than half of the ruling

Liberal Democratic Party and the Unification Church. NASA intentionally crashed the spacecraft into an asteroid in hopes of altering its orbit. In November of last year, NASA launched the dark spacecraft, the size of a refrigerator. Merely a year and seven million miles later, Dart slammed into the asteroid last night. NASA says it will take a couple of months to

determine exactly how much the asteroid's path was changed. Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenty seven hundred journalists and analyists more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan, Thank you, Michael. Five on Wall Street time for the Bloomberg Sports Update with John Stesshow thanks dath mother that they put well at a white out at Midlife State and see the Giants trying to

get to three. You know they had a third quarter lead after sake one park these thirty six yard touchdown run, but Dallas came back at Cooper Rush TV passed to Cede Lamb where the eight hal minutes left gave the Cowboys the league. They won twenty three to sixteen. Lamb dropped a past that would have been a long touchdown on the first half, but he more than made up for it with the game winner that he caught one

hand at. Dallas is now one ten of the last eleven versus Big Blue Giants or two in one plays Chicago Sunday. The offensive line needs to do a better job in pass protection. Daniel Jones last night SAT five times. They're a good front, they're a good defense. You gotta

get credit for them. Um, they played hard. Uh, but yeah, I think there's things we can all do better with with that, and uh, that starts with me and you know, finding space to step up, finding space to move around the pocket and and make some moment late in the game. Sterling Shephard, the Giant's longest tenure Giant, who made it back from last year's Achilles injuries, suffered what appears to

be a serious, perhaps season ending knee injury. Patriots Gibby mac Jones as what's been called the severe high ankle Sprainhill miss multiple games. Big games Sunday Kansas City at Tampa Bay. It's not known where that game will be played to the impending hurricane in Tampa. In Toronto, blue Jay's beat the Yankees three to Tenannans that prevents the yanksom clints to the a l E's another chance tonight. Add another chance for Aaron Judge to hit home on

number six. You had to hit two walks, but now six straight games without a homer. Mets host Miami tonight. Their lead over Atlanta now just one game with eight Games to Go, John Stashward Bloomberg Sports Nathan Thanks John seven on Wall Street time for the tri State Business Report with Bloomberg's Corey. Three people involved with one million dollar public company built around a New Jersey Delhi are

charged with market manipulation. Federal prosecutors Monday accused to three of artificially inflating the price of two companies one rant your hometown Delhi in Paulsboro, New Jersey. The Port of New York and New Jersey outpaced competitors in California to finish August as the busiest container operation in the US. The East Coast Complex moved eight hundred and forty three thousand,

one d twenty ft equivalent units last month. Cryptocurrency lending platform next So has been accused by New York Attorney General Letitia James falsely claiming it was a licensed broker dealer. Suit filed Monday alleges next So fail to register is required by state law, while telling inventors it was fully in compliance that your Bloomberg tries State Business Report. My mid Cory, Thanks, said 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 Go on wf L A, Tampa Bay. We're talking about how the post Hurricane Ian construction costs could top a quarter trillion dollars. I'm corney Dona Hall kt R H in Houston. Remote worked over over sixty of the increase in health prices during the pandemic. I'm Gina

Servetti in for w c CEO in Minneapolis. I'm reporting that a federal court has tossed most but not all, of a lawsuit alleging that target copied a digital room planning app. I'm Stephen Carol and Bloomberg d A B Digital Radio in London. We've been reporting on the Chancellor Quasi quartet meeting tough financiers after his tax cut, plants and the pounds plum as I made Cory on w

w J in Detroit. I'm reporting environmental regulators have laid out enforcement actions against Atlantis for air quality problems in Detroit. And those are some of the stories our twenty seven hundred Bloomberg journalist and analyst are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial

was written by the Bloomberg Editorial Board. Mexican President and dress Manuel Lopez Obrador is taking steps to increase the military's role in public security. In doing so, he hopes to contain a surge in drug related violence. But degrading the power of Mexico's drug cartels will require more than that. The Mexican government needs to devote more resources toward identifying and dismantling drug laboratories and address the weaknesses of its

criminal justice system. And even more importantly, Mexico should reinvigorate security cooperation with the US and ease restrictions on American anti drug operations. The US and Mexico have a shared interest in combating drug trafficking and violence. Closer security cooperation is necessary to protect civilians on both sides of the border.

This editorial was written by the Bloomberg Editorial Board. For more Bloomberg Opinion, please go to Bloomberg dot com, Slash Opinion or O P I N go on the Bloomberg terminal. This has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at O P I n GO SMP future is now up thirty points down, futures up a hundred eighty NASTACK futures are highed by a hundred seventeen points.

We speak next with Daniel Morris of BNP Party Mob. This is Bloomberg Bloomberg eleven three oh weather sunshine, low seventies today, mid fifties tonight. We'll get up to near seventy tomorrow under a sunny sky, mostly sunny, upper sixties by Thursday. Right now sixty one in Central Park markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, BLO Bloomberg Business Out and at Bloomberg Quick Take. This is a Bloomberg Business Flash and I'm

Karen Moscow. Global markets remain on edges. Investors brace for a hunting risk of global recession even as dip years emerged. We checked the markets every fifteen minutes throughout the trading day on Bloomberg, and futures are higher. SNP futures of thirty one points. DAL futures have one hundred eighty two

and NASDAC futures have one hundred twenty. The decks in Germany's have three tenths of upper sent ten year treasury of twenty one thirty seconds three point eight three percent yield on the two year four point two seven percent. Nimex screwed oil up one point four percent of a dollar eleven at seventy seven dollars eighty two cents a barrel. Comex gold up half percent or eight dollars twenty cents

at sixteen forty one sixty and ounce. The euro point nine six two four against the dollar, British pound one point oh seven nine nine, and the en one forty four point four two and looking at bitcoin, it's up five and a half percent at twenty thousand, one hundred seventy dollars. That's a bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael Karen, thank you very much. Florida is bracing for

Hurricane Ian, now a category three storm. Forecasters expect Ean to make landfall on Florida's Gulf Colt, possibly as a Category four hurricane late tomorrow or early Thursday, dumping up to sixteen inches of rain and bringing a storm surge of up to ten feet to the Tampa area. Senate Democrats released a short term government funding bill late last night that included a measure to speed up energy project permit.

It is opposed by most Republicans and some Democrats. Monday Night football, the Giants lost to the Cowboys twenty three sixteen. In baseball, the Yankees lost to the Blue Jays and ten innings three to Aaron Judge still stuck at sixty home runs as he chases Roger Marris is sixty one, a l record. The Orioles beat the Red Sox fourteen eight.

The Nationals lost. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven journalists and analysts more than a hundred twenty countries. Michael bar this is Bloomberg. Nathan alright, Michael, thank you were at nine on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak, and we're joined now by Danie Morris, chief market strategist at

BNP Party Asset Management. Daniel, it's good to speak with you this morning as we watched this rally after yesterday's big drop for the SNP five. Do you think this market's found bottom or could it have further to fall? Well, of course, the trick is to propose a level and date, but never both at the same time. So for now, I think it is certainly possible we do get a

bit of amounts. It was quite steep fall, and we want to step back and think about the current macroeconomic data, which for the most part in the US is still pretty supportive, so I think that would make sense. We're going into the third quarter earning season, I think again, given that growth for now is good, really anticipating the numbers will be fine, So I think that could provide could provide some support in the short term, but we still got to realize that that by second quarter next

year you may have negative GDP growth. Alright, So in the medium term, what is your outlook as we head into this earning season here? Well, if if you look at what's supposed to happen in the US, I mean, really, the point of what this FET is doing is to significantly slow down growth to bring in placing down That really doesn't seem to be any other way to make that happen, and that's got to have an impact on corporators at some point. So the medium from outlook for

US equities, we still think is challenged. But that's why we're looking for overweights and other regions and countries in the world. Given what you see ahead in the US interesting looking for overweights and other regions given the strength we've seen in the dollar. Obviously on the session it's pulling back a bit, but that's got to be difficult for other markets. Whether you have this kind of outsized

dollar strength in the market, doesn't it well. I mean, certainly you need to think about your currency exposure alongside the equity exposure because you generally are going to need to hedge it. But you know, if you think of markets particularly like Japan and in the good old days the UK, you know it's a strong dollar and weak local currency normally translated into two above average returns for those markets. So you certainly in Japan more see the

benefit from the weaker yet on the market. But then you of course have to take into account the currency side. What about the call that we've got from Goldman Sacks and black Rock out overnight. They're both looking pretty sour on equities, at least in the short to medium term,

given the risk of global recession. What's your view on that, well, and wouldn't you know, Again, it comes down to the time, and wouldn't I wouldn't think disagree in the medium term if there is a so fur lining to any of this, I mean it is possible that the real rates have have topped out. I mean we've had a big move in expectations for the FED at the same time that inflation expectations are pretty stable. Now up to now they increase. We've had in real rates this year, which has just

been huge and very quick. Has been the catastrophic for gross talks. But now if we have some stability in row rates, at least on a relative basis, I think you could start seeing better performance of growth versus value. So given your call on real rates, so you're thinking inflations peaked at this point, that the FED could pivot pretty soon to at least slower rate hikes, Well, I think we need to differentiate between realized inflation and inflation expectation.

So in terms of realized inflation. Yes, it actually probably has peaked, and certainly at a headline basis. And if you look at most estimates for the level of inflation a year from now, be it from the FED itself, be it from the market, being from economists, it should be you know, around three or three and a half, which you know is clearly a pretty big deceleration from here. But what's good a matter in terms of longer term barn yields are inflation expectations, and they've really been quite

stable for a while. I mean, because of the credibility that Fed has that they are going to get inflation back down the target, inflation expectations have remained very well anchored. All right, Daniel, thanks as always for your thoughts. Really appreciated. Daniel Morris joining us this morning, Chief market strategist at BNP Pariva Asset Management, Karen Orry, Nathan, thank you. It is five three on Wall Street. It is time now for the Bloomberg Law Report. Let's get to the legal

stories we're watching this morning. From Bloomberg's Jeff Bellinger. Big tech companies including Google, Apple, and Microsoft, reached a deal to end claims that their phones and laptops infringe a semiconductor patent owned by an Irish company. A proposed class action charges the benefits of Walmart's Paige subscription service are

misleading and the automatic renewal option is deceptive. Lilly USA is being sued by the Equal Employment Opportunity Commission for allegedly intentionally failing to hire older workers because of their age. 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, thank you.

Now another legal story we're watching. Tom Barrick, the founder of Colony Capital and a close ally of Donald Trump, is on trial for using his access to the former president to secretly help the United Arab Emirates try to gain influence over American foreign policy. Prosecutors say Barrick and his former assistant Matthew Grimes for the eyes and ears and voices of the UAE, providing the country with sensitive information and access to the highest levels of US government.

But the defense says Barrick was merely a globe trotting businessman who ran a forty billion dollar investment fund and has a spotless record of only pursuing legitimate business and political interests. For more in the case, June Grassos faced to Bloomberg Legal reporter Patricia Hurtado. So is the defense he didn't do it or he didn't get money for it. It's both that he didn't do it, and if he got money, it was because of investments that were separate

and apart from any kind of activity. Basically that he denies any wrongdoing. He denies being an unregistered foreign agent, he denies acting and lobbying on behalf of the United Arab Emirates, And in fact, he's argued that there are actually points where he was advocating for Cutter and they were basically sworn enemies. So why would you support one country and then support another country when their enemies? What would you say? From the opening statements is the best

piece of evidence the prosecution has. Well, I mean, the other thing that he's charged with is lying to the FBI about this investigation when they questioned him point blank. Now, a lot of the evidence has been alluded to, but it's under steal because it's classified. So half of the documents that get filed or blacked out according to the defense, but they expect to call people in the former Trump administration to discuss that Trump and high ranking officials and

the Trump administration. We're aware that Barrick was talking to the Emiratis and this was just the way they did business, and they were using Barrack because he was well known to them. There's some possibility that high ranking members of former Trump administration could be called in to testify, including Jared Kushner and former Secretary of State Rex Hillerson and former Treasury Secretary Steve the Nuchin about what did Barrick

say and what did you know about it? Lyne to the FBI is one of the prosecutions sort of fallbacks in these cases, and that's an easy case for the prosecution to make because the FBI usually has the answers before they asked the questions. Yeah, but it's interesting because they're arguing the same defense Martha Stewart made, which is, I mean, you took notes by hand, but you didn't record it. How do you know you didn't write the

questions down? How do we know that the answer was on when you don't have the question in the answer, And so how's the jury supposed to infer the worst possible interpretation and as Bloomberg Legal reporter Patricia Hurtado speaking with the June Grasso. Catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time or subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional

legal research and business development tools at Bloomberg Law dot com. Again, futures are on the rise. S ANDP futures of twenty six points now, futures of one and nasday futurists are of one hundred five still ahead. On Bloomberg Daybreak, I check on the business headlines and all the news you need to start your day. And this is Bloomberg