Bloomberg Daybreak: September 28, 2022 - Hour 1 (Radio)

for the lowest level in almost two years. Ten year treasury yields breached four percent, and the dollar rises after the White House tops down the prospect of a currency agreement, mixed reaction to the so called tent City for migrants and the Bronx plus Ukrainian President Zelenski dismisses the Krumlin run referendum as a farce. I'm Michael blar more a hand, I'm John Stash Edwards, the Yankees one ofto and clips the Al East. The Met's lost in an outide for

first with Atlanta. That's all Strady Ahead on Bloomberg Day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one O 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. Good morning, I'm Nathan Hagar and

I'm Karen Moscow. US stock index futures are lower this morning, and we are coming up to five out one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. SNP futures down twenty five, boys at own futures down a hundred forty nine, nasdack futures down a hundred twenty two, and the tenure treasury down ten thirty seconds. You know, three point nine eight percent. They yield on the two year four point to three percent. Nathan, Karen.

We'll have much more on the market turmoil in just a minute, but first you want to bring you up to date on Hurricane Ian. It has just been upgraded to a dangerous category four storm with top winds at a hundred forty min taking him at Florida's Gulf coast. Bloomberg Meteorologist Rob Carroll and joins US now with the latest on the track of the storm. Good morning, Rob, Nathan and Karen. Hurricane Ian continues to move north northeast and around ten miles an hour this morning. Is a

dangerous hurricane. The winds in excess of a hundred and twenty miles an hour. We were seeing wind gus over sixty miles an hour earlier this morning in Key West. The store will make landfall later today somewhere north of Fort Myers, who as far north as Tampa, and then it will start to move inland. We're expecting the hurricane force winds to extend out at least forty five miles from the center of circulation, so there's gonna be a lot of damage across that portion of West Florida between

Fort Myers and the Tampa area. Storm surge is probably going to be an excess of ten feet. We'll see wind us over a hundred and twenty five miles an hour, and along the path of the storm, anywhere from five to ten inches of rain is likely to fall over the course of the next forty eight hours. Nathan and

Karen alright, Rob, thank you, of course. He'll be checking in with Bloomberg meteorologist robbed Caroline throughout the morning, well ahead of the store, and Disney SeaWorld and Universal Orlando have shut their Florida theme parks through at least tomorrow. Tampa's main airport closed up yesterday. Orlando plans to do the same later this morning. Governor Rhonda Santis says about two and a half million Floridians need to get out of harm's way. If you are in an evacuation zone,

particularly in those southwest Florida counties. Uh, you know your time to evacuate is coming to an end. Uh. You need to evacuate now. Governor around to Santas spoke with the President Biden last night. The President says FEMA has deployed seven hundred people to Florida and up to seven thousand members of the National Guard are being activated. The storm has also forced the House January six Committee to postpone its latest public hearing this afternoon. No new date

has been set. All right, Karen, Let's get back to the markets now. The equity sell off continues this morning. Global stocks are heading for their lowest level in almost two years. The yield on tenure treasuries breached four percent for the first time since two thousand eight, and the dollar is soaring After the White House talked down the prospect of a currency agreement to weaken the green back.

White House National Economic Council Director Briand says he does not expect another five type deal among major economies to counter dollar strength. Do you see any possibility of a global cord to kind of adjust uh currency values the way there was with the Plaza qarders. That's just not something you're focused on. I don't anticipate that. That's UH. That that's that, that's where we're headed. White House National Economic Council Director Brian d spoke there with David Rubinstein

on peer to peer conversations on Bloomberg Television. Well Naked. An aggressive FED has also a few of the dollars rally. A chorus of central bankers is doubling down in the need to keep raising rates in the face of inflation. San Francisco FED President Mary Daley says the hikes could

have an impact on the labor market gap. To balance that off with our dual mandate with full employment and trying to navigate that to bring inflation down while we do so as gently as possible, not to tip unnecessarily the economy into a downturn that actually influences the full employment part of our mandate is a struggle in San Francisco. FED President Mary Daily is currently not a voting member on the f O m C well the dollars. Recent gains against the euro and the pound accelerated after the

UK announced massive tax cuts last week. Bank of England chief economist Hugh Phill says a significant monetary policy response is needed in a context where there is a rebalancing of the macro policy environment and an anticipation of loose, looser fiscal policy. I think it's hard not to draw the conclusion that all this will require a significant monetary policy response. Bo e's chief economist hub Phill says the best time to act is at the institution's next meeting

in November. Meanwhile, Nathan, global criticism of the UK's fiscal plan is growing this morning, and let's go to London and get the details from Bloomberg's un parts. Good morning U, and good morning Nathan and Karen. The i m F has delivered a stinging rebuke of the UK's new unfunded tax plans. The International Monetary Funds says the government's package of tax cuts, the biggest in fifty years, are excessive

and in need of revision. It says physical policy should not work across purposes with monetary to see Charles Laquasi Quos meets with top Bullstreet bankers in London. Later today, Hill sets up by his UK gowth plan is still the right thing to do in London, Amun puts splin Bok day break, Are you and thanks? Back in the US, the White House may be getting ready to shake up its economic team. According to Axios, officials are preparing for

Treasury Secretary Janet Yelling to depart after the midterms. A White House spokesperson says the Secretary does not plan to leave, and top economic advisor Brian Deese also says he has no plans to depart either. Melon Capitol Hill Nathan House Democrats have released a bill that would restrict stock ownership for high ranking government officials that includes members of Congress, the president, vice president, Supreme Court justices, and their spouses

and dependent children. It covers commodities, futures, cryptocurrency, or other digital assets. Public officials would have to put them in a blind trust or divest their whol things. And we're watching shares of Biogen this morning. They are soaring up forty six percent in the pre market. Biogen and its partner, as I say, they're drugs significantly slow to Alzheimer's disease.

That would make it the first medicine to blunt progression of the most common dementia in a definitive, large scale trial. Bloomber day Break is brought to you by se I Imagine your asset management firms. Operational infrastructure is a competitive advantage that see I show you how at se I c dot com slash I m s. This is Bloomberg. Thank you, Karen. It's five oh seven on wall Stream. We got an accident on the South New York State through a It's close to the tapan Zee Bridge and

it's fifty four degrees in Central Park. Michael Barr has more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. This controversy over a temporary humanitarian relief center being built in the Bronx as more immigrants arrived from Texas. The so called Tent City and Orchard Beach will be heated and can house up to a thousand migrants. Mayor Eric Adams says the tents are supposed to be a temporary stopped from migrants.

Says they get on their feet. We want to make sure that we bring people into a safe, clean environment as we process them for a few days to figure out their knees and move them to the right location. But immigrant rights advocates say this is a terrible location, far from mass transit or other services the migrants might need, and some residents say they are fearful. New York Mayor Eric Adams talked about his return from Puerto Rico and

the Dominican Republic and the aftermath of Hurricane Fiona. New York lawmakers are calling for more federal aid to help with recovery for the island. New York City Council Member Oswald pholice, what's happening in Puerto Rico and the Dominican Republic is extremely sad. It's a horrible tragedy. These are communities that have worked for everything that they have, those

small businesses, those homes, they have worked for it. Council Member Police says the City of New York will be with Puerto Rico and the Dominican Republic every step of the way. Moscow backed officials declared that all four occupied regions in Ukraine voted in favor of joining Russia. Ussia conducted what Ukrainian leader Voladimir Zelenski called a sham referendum.

US Ambassador Linda Thomas Greenfield the United States will never recognize any territory Russia attempts to seize are allegedly annex as anything other than part of Ukraine. Ambassador Thomas Greenfield the US will allow a limited number of refugees in three. President Biden said he would welcome up to a hundred twenty five thousand refugees this year and will let in the same number in the next one of the January sixth rioters who attack police officer Michael Phone has been

sentenced more than seven years in prison. Kyle Young a Vama began crying and begging for forgiveness during his sentencing. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. How Michael Barr and this is Bloomberg, Nathan, Thank you, Michael five O nine on Street Time for the Blueberg

Sports Update. Good Morning, John stenshow in Morning Night. Then the Yankees open last night's celebration in Toronto not the only one they'll have. They beat the Blue Jays five to two. Is Labor Torres at three hit three RBIs, and Jamison ti Own pitched into the eighth inning, got his team leading fourteenth win for Aaron Judge, a line

out in the first inning, then four straight walks. So again, no home run numbers sixty one, but a division title for the Yanks there twenty, and they take advantage of the new format where the top two teams get a first round by into the division series. So in the a L, that's the Yanks and Astros. In the NL, the Dodgers will be joined by whoever wins the NL East. And right now that's a flat footed tie between the

Mets and Bray's Atlanta one eight two at Washington. The Mets lost at City Field in Miami, six to four. Carlos Carrasco lasted just three innings, gave up four runs, Trevor Williams allowed two more, peele Lonzo and defeat a three run homer is forty. He leads the majors with a hundred and thirty one rb I seven games ago, including three this weekend in Atlanta. If the two teams finished in a tie, it's the Mets who will almost

certainly won the tie break. For the only way Atlanta wins the season series is if they sweep this weekend, and if they do, it's unlikely the two teams will

finished tie. The Giants made official the knee injury suffered by Sterling Shepard Monday night is a season and being torn intl all as well in Brooklyn after at Turtlene off season where Kevin Rant demand of the Nets trader unless they fire coach neednt knowing Kevin, as long as I haven't didn't really bother me the way, maybe everyone would think, you know, that's a part of being competitors.

I wasn't like um overly surprised, and I wasn't even said the next are like a family, and all families have issues, John Stature, that were Bloomberg Sports all right, John, thanks SMP futures right now down thirty five points, Sound Futures down two and at thirty three. Nastack futures leading the declines this morning, down one or a hundred forty nine points. Tenure Treasury down fourteen thirty seconds. The yield back at four percent yield on the two year four

to five. As we continue to track Category four Hurricane Ian taking aim at Fars Gulf Coast. We check in next with Bloomberg senior insurance analist, Matthew Palazola Bloomberg eleven three oh weather sunny today in New York I near seventy degrees up for sixties tomorrow and Friday. Right now, it's fifty four under a clear sky in Central Park. Good morning, markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at

and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow. The dollars soaring into another record after the White House talked down the prospect of weakening the currency, the continuing global bond route, pushing ten year treasury yields to the highest and S two thousand eight and UK thirty year yields to the highest. Since we checked the markets every fifteen minutes throughout the trading

day on Bloomberg, and futures are lower. SNP futures down forty two points down, futures down two hundred seventy four, nasdack futures down one hundred seventy seven. The decks in Germany is down two point one percent ten Your treasury down fourteen thirty seconds yield four percent. The yield on

the two year four point to five percent. Nine X Screwed oil is down to ten percent or thirteen cents and seventy eight dollars thirty eight cents of barrel comes goal down seven tenths per cent or ten dollars seventy cents at sixteen twenty five fifty announce. The euro is at point nine five four two against the dollar British found one point oh six seven zero and the yen

four point seven nine. Looking at bitcoin, it's down two and a half percent at eighteen thousand, five hundred eighty dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much. Timer and hurricane and it's churning in the Gulf of Mexico and is about seventy five miles from Naples, Florida. The National Hurricane Center says e n

has strengthened to a category four storm. Thousands of nights have been canceled At the United Nations stop diplomats are dismissing the results of staged referendums in Russia's occupied areas of Ukraine. Some Ukrainians say they were forced to vote at gunpoint. In baseball, the Yankees clinched the A L East, beating the Blue Jay's five to Aaron Judge was walked four times and remains at sixty home runs, one shy

of Rojermari's one a L record. The Mats lost, the Red Sox down, the Orioles thirteen nine, the Nationals and A's lost. The Giants won Global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan all right, Michael, thank you. It's five nineteen on Wall Street Life from the Bloomberg Interactive Brokers Studios.

This is Bloomberg Daybreak. Also want to pass along some headlines crossing the Bloomberg terminal from Japan and South Korea saying that North Korea has apparently fired an unidentified ballistic missile towards the East Sea off the Korean peninsula. Will can can you monitoring those developments for you. Let you know any further details as soon as we get them. In the meantime, we do want to keep our focus on hurricane in taking aim at the Florida Gulf Coast.

Joining us now is Matthew Palazzola. He's a senior insurance analyst for Bloomberg Intelligence, and we bring him on this morning because this storm is shaping up to be one of the costliest potentially in US history. Particularly we're talking about a Category four storm. If it keeps up that strength and takes him at a center of population, we're talking serious potential damages here. Matthew. Yeah. So you know, there's there's a slight bit of good news just this morning.

There's the five am forecast from the National Hurricane Center. And if we're talking you know, this is certainly going to be a large event, but if we're talking dollar value property damage, it looks like the path is shifted even further south. So the worst case scenario was a direct hit on Tampa Bay from a property much point of view, and it looks like at least, you know, as of five am this morning, we might avoid that

worst case scenario people were talking about in the industry. Uh, property values and damages in the hundred billion dollar range in a in a worst case scenario. But it looks like we're actually going to avoid that, all right, So what's the base case scenario? Based on the forecast that

we're getting now the current track of the storm. Are we still expecting that it could touchdown make landfall on the Gulf coast to Florida as a category for I think these storms usually weekend kind of right before they get there. But it still looks like the forecast is a category three or four as it makes landfall um south of Tampa. So yes, definitely going to make landfall there. Um. What we try to do is insurance analysts is look at analog storm, So what what storms took a similar path?

How much do they cost insurance companies? Uh, what I'm looking now is two thousand four Hurricane Charlie, which took a pretty similar path. It was a category four when it made landfall. It was actually a little further south at that time. It costs insures eleven billion dollars um. There's estimates out there from insurance brokers that say similar events could be in the fifteen to thirty five billion dollar range. Now, that's that's the kind of level that

the insurance industry in Florida can handle, isn't it. I mean it's not like hurricanes or anything new for the Sunshine Stain certainly not. So. These are companies. This is their bread and butter um. I would say at the high end of that, the thirty five billion dollar lock. Uh. The California market is made up of mutual players like State Farm, It's made up of a state fund which is essentially funded by the taxpayers, and then you have

large national players and small regional players. At the thirty five billion dollar are lost. The small regional players could be in trouble, but the large companies that I cover, like All State, chub Progressive, this is not going to be a small thing for them, but a very manageable ef that even at the high end. You got about a minute left here, Matthew. How long of a recovery could we be looking at from this? And talk a little bit more about the reinsurance market, because they've been

having some struggles in Florida, haven't they. Yeah, there's been a significant problem in Florida with being able to obtain reinsurance, which is insurance for insurance companies. So the smaller companies that I talked about have not been able to get affordable reinsurance and some of them have actually gone insolvent or left the state. And what this has done is caused problems for homeowners in the States, so they can't

even get insurance if their insurance company can't get reinsurance. UM. As far as the recovery, you know, the insurers are on the ground almost immediately right away trying to work with people like this is a home business, is a short tail business. Insurers are are complaying out pretty soon. So you know, I, without seeing where it's hitting and how strong, I can't really talk too much about the recovery, but you know, certainly going to be a big event. Yeah,

we're going to continue monitoring it, of course. Matthew Palazola,

thanks again for being with us necessarily morning hour. Matthew Palazola as a senior insurance analyst for Bloomberg Intelligence who will be very busy for the next several days here with Hurricane Ian now a dangerous category four store maximum wins a hundred forty miles an hour according to the National Hurricane Center Last Check Center about seventy five miles away from Naples, Florida, and it is currently on track to come ashore on the Florida Gulf Coast near the

Tampa Bay area sometime late today. Looking at the market's futures are selling off. S and P futures down forty four points, Dow futures down two NASDAC futures down a hundred seventy eight points. This is Bloomberg Bloomberg eleven three oh weather for the city. Nice for the rest of the week. Sunshine near seventy today, will be in the upper sixties of sunny skies tomorrow and Friday. Right now fifty four in Central Park, broadcasting live from the Bloomberg

Interactive Brook Studio in New York. Bloomberg E living freed to Washington, d C, Bloomberg N one to Boston, Bloomberg one O six one does San Francisco, Bloomberg sixt to the country, Sirius XM chant A one nine te and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak and it's five thirty on Wall Street. Good morning. I'm Nathan Hager, and I'm Karen Moscow. We are just about four hours away from the open of US trading. Let's get you up to

date in the news. You need to know what the shower. Hurricane Ian is now a dangerous Category four storm taking aim at Florida's Gulf coast and threatening to do serious damage. Bloomberg meteorologists Robbed Caroline is tracking the storm. Rob Karen and Nathan. The eye of the hurricane very apparent on the radar out of the Key West area. We can see it working its way north northeast. It's paralleling the

coast of western Florida. At some point today it will turn more towards the northeast and that allow it across the coast somewhere north of Fort Myers to as far north as about Tampa. Looks like the storm surge is going to be in excess of ten feet. Will be seeing wind gusts probably over a hundred and twenty five miles now with the storm, and excessive rain of five to ten inches along the path over the next twenty four hours. Karen and Nathan. Okay, Rob, Thanks, We're gonna

be checking back with you throughout the morning. Ahead of the storm, thousands of flights have been canceled. Disney SeaWorld and Universal Orlando are all shutting their theme parks through at least tomorrow, and Florida Governor round the Santas is activating five thousand members of the National Guard. Another two thousand are coming in from out of state Nate Now to the turbulent markets, the dollar is trading at a record after the White House talked down the prospect of

weakening the currency. The on shore you want has fallen to the weakest level against the dollars since the financial crisis in two thousand and eight, and the global bond route continues as a tenure. Treasury yields touched the highest level since two thousand and eight. A slew of hawkish Federal Reserve speakers, including Minneapolis Fed President Neil cash cry are stoking fears about the economicccount. Look, we are moving very, very aggressively. There's a lot of tightening in the pipeline.

We are committed to restoring price stability, but we're also we also recognize, given these lags, there is the risk of overdoing it. Minneapolis Fed President Neil cash Cary said the Fed is united and getting inflation back to two in Europe, hearing a stinging rebuke of the UK's new unfunded tax cuts, the International Monetary Fund calls an excessive and in need of revision. And in corporate news, Nathan Bloomberg News has learned that Apple is back off plans

to increase production of its new iPhones this year. The company had expected to serve gin demand, but that hasn't happened. Apple aimed to produce ninety million handsets in the second half of the year, roughly the same level as last year, and futures this morning are lower. SNP Future is down forty one points down, futures down two hundred seventy one

and NASDACK futures down one hundred seventy four ten. Your treasury down twelve thirty seconds, you'll three point nine they yield on the two year four point to four percent, and NIMEX screwed oil is down a quarter percent. And as straight ahead, we have your latest local headlines plus a check of sports. And this is Bloomberg. Thank you Caring.

It's five thirty three and Wall Street fifty four degrees in Central Park at that accident on the South and New York State thru Way near the Cuomos Happenzee Bridge. More coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Michael Nathan, thank you very much. There's sharp debate as New York City officials say a humanitarian relief center will be built in the Bronx as more immigrants arrived from Texas.

It's being built in the Orchard Beach, but some Africans say the shelters location could create issues. This Orchard Beach resident had some words for the city. If you want to put something in our community, you need permission from us. The so called ten city being built will be heated and can house up to a thousand migrants. New York Mayor Eric Adams discussed his trip to Puerto Rico and

the Dominican Republic ravaged by Hurricane Fiona. Adams says Puerto Rico has a significant population in the city, and what affects Puerto Rico affects New York. This is the international city. This is America's city. People like it or not, this is America's city. What we do is going to impact what happens across the globe and how people are going to perceive us across the across the globe. Mayor Adams says about half of the people in Puerto Rico are

still without power and fresh water. Russian leaders declared victory in a series of u N condemned referendums as the Crumblin moved to annex a large chunk of occupied Ukrainian territory. Meanwhile, the White House says Russian men fleeing the military draft are welcome to apply for asylum in the US Press Secretary Kerin Jean Pierre, we are seeing protests in the

streets of Russia. We are seeing people sign petitions, and I think the message that they're sending to us very clearly is that this war that Putin started, this war that was started by the Kremlin, is unpopular. White House spokesperson Karaine Jean Pierre. A January six rioter who attacked the police officer, was sentenced to eighty six months in prison. Kyle Young, who is thirty eight, was captured on the body cam a former DC police officer, Michael Phone, as

the violent mob pushed towards him. Young and Court broke down in tears and begged for forgiveness. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries. Michael Barrn, this is Bloomberg, Nathan. Thanks Michael on Wall Street. John Stashower has a Bloomberg Sports Sunday. All right, Nathan. Mets and Yankees both heading to the MLB postseason. The Yanks as

a division Champa. Will the Mets win the NL East? It's the only division still up for grabs. The Cardinals last night clints the NL Central. The Mets lost at home to Miami six to four, a pet Alonzo three run homer is forty if not enough to overcome a rough start by Carlos Carrasco Atlanta one eighth to two at Washington. The Mets and Braves have identical records now of nineties seven and fifty eight, seven games to go, and including the three game series this weekend in Atlanta.

The Yankee Division clinching win was five to two at Toronto. The Red Hunt labor Torres with three hits, three RBIs to back the pitching of Jamison Tyon. He served up a leadoff homer to George Springer, but dominated after that. Aaron Judge had only one official at bat, he walked four times, refuses to chase bad pitches even as he tries to tie Roger Marris's home run record. Now seven games without a homer. Judge still stuck on sixty, but in a good mood as he was sprayed with champagne.

What are yours so far? Um, We're definitely not done, but this is a great first step in to you know, don't go you know, got out there and winning a World Series and don't get a chance of you know, clinching them into this room. Guy. Uh, there's definitely something special Jets. Last night on the Yes Network, Sterling Shepherd's season is indeed over a freak knee and dream Monday Night, have the MetLife Turk where he was simply wanting a pass pattern comes just as Shepherd made it back him

last year's Achilles injury. He was the Giants top receiver. They were counting on Kenny Galladay, a high price free agent and first round draft pick, and Darius Tony, but so far those two had combined probably two catchers. John statually, we're Bloomberg Sport Snapen. All right, John, thank you. It's five thirty seven on Wall Street, time for the Tri State Business Report with Bloomberg's Ed Corey. After surging in the week following Labor Day, office occupancy dipped a bit

of New York last week. New York offices were forty six percent fool for the weekended nuberwenty one, according to Castle Systems. That's down slightly from close to forty seven percent the previous week. The trend was the same across the country. Manhattan based law firm Epstein, Becker and Green is suing former client Princeton Holdings. It claims Princeton failed

to pay an early nine hundred thousand dollar bill. In the lawsuit, Epstein claims Princeton CEO Don Williams hired the firm in March two thousand twenty for work on various corporate transactional matters. Governor Phil Murphy says New Jersey will spend forty nine million dollars to renovate the new Brunswick train station. Murphy says the new funding will be used to extend and replace passenger platforms and revamp elevators and escalators.

That's your Bloomberg trying state business report. I'm in Corey. Thanks 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 Potasc on w f L A, Tampa Bay. We're talking about the surge in private jet flights out of Florida ahead of Hurricane. I'm Corney's Nahoe on ktr H in Houston. Shall me

build two plants to produce sustainable aviation fuel. I'm Caroline had Combloomberg d D Dishradio in London. We're reporting on the I M s telling the UK to v think it's tax cup plans as the thirty year guilt yields it's the highest since I'm Ed Gory on w w J in Detroit. I'm reporting Southfield's Jack's car Wash is looking to expand. Those are some of the stories are twenty hundred Bloomberg journalists and analysts working on this morning around the world. It's five thirty nine on Wall Street.

The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Amid the stir caused by President Biden's plan to cancel student loan debts, too little attention has been paid to another far reaching reform, the administration's change to a lending program known as income driven Repayment. If widely applied, Biden's proposal would incentivize students to take out bigger loans and increase overall student loan debt. Worse,

it would only encourage colleges to continue raising tuition. It would be better for the government to expand targeted aid through federal pell grants, which would limit the amount that poor students have to borrow in the first place. Reducing the cost of higher education, particularly for low income students, is a goal worth pursuing, but this plan is the wrong way to go about it. 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. Listen for Bloomberg Opinion editorials every weekday. At this time terminal. Customers can read more at O P I n go. As the sell off continues around the world, SMP futures or down forty two points now futures down to it at seven, the Nasdaq futures down a hundred

seventy five points. The tenure Treasury is down eleven thirty seconds. The yield just back below four percent at three ninety nine. Yield on the two year four point to three, the euro at point nine five five seven against the dollar. Matt Mayleie of Miller Tabac joins us. Next. This is Bloomberg Bloomberg eleven three oh weather sunny with a high near seventy today, will be in the upper sixties tomorrow and Friday, with sunshine expected through the rest of the week.

Right now fifty four and clear in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg tricktakee He's a Bloomberg Business lash and I'm Karen Moscow. The dollar staring into another record after the White House talked down the prospect of weakening the currency and it containing global bond route, pushing ten year treasury yields to the highest its two thousand eight and UK thirty year

yields to the highest since nineteen and ninety eight. Check the markets every fifteen minutes throughout the trading day on Bloomberg Guess and p future is down thirty nine points down, futures down two hundred forty seven and Nasdaq futures down one hundred sixty seven. The decks in Germany's down one point nine percent, ten year treasury down twelve thirty seconds. You'll three point nine nine percent. They yield on the

two year four point two three percent. Nine Max screwed oils down at thirty percent or twenty seven cents at seventy eight dollars, twenty five cents a barrel co makes goal down sixtents percent or ten dollars ten cents at sixteen twenty six and ounce. The euro is at point nine five six zero against the dollar, British found one point oh six nine four and the end one four point six eight. Bitcoin down two point two percent at

eighteen thousand, six hundred and sixty dollars. As 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. Hurricane in is now a category four storm as it's ends toward Florida, ME and it's about seventy five miles from Naples. Storm knocked out power to the entire island of Cuba. North Korea fire do ballistic missile off its

eastern coast today. A statement from South Korea's Joint Chief of Staff comes a day before US Vice President Kamala Harris is set to visit the de militarized zone dividing the nation's In baseball, the Yankees clinched the a L East, beating the Blue Jays five to Aaron Judge was walked four times and remains at sixty home runs one shy of Rojamaris sixty one, a L record. The Mats lost, the rat Sox down, the Orioles thirteen nine, the Nationals

and A's lost the Giants. One. Global news twenty four hours a day on air end on Bloomberg Quicktake power by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries. Michael bar And this is Bloomberg, Nathan. Thanks Michael. It's five forty nine on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and Matt Mayley joins US now chief market strategist at Miller Taya, Matt, I want to get

your thoughts on this market sell off. But first, we've got a storm headed Florida's way. What kind of economic damage could we see from hurricanean Well, one of the things, uh, that we have to worry about, Nathan. Of course, it's all the damage that that will be done. And you know, we obviously are our thoughts and prayers are with everybody

in Florida. Um. And and it's kind of funny because I've been somebody who's been, you know, worried about the economy for quite some time, saying that we were very likely headed to recession. I was talking about that, you know, in the winter and spring. However, this thing is it's funny because even though the people are talking about demand destruction, it will you know, cause even more demand destruction. Uh.

They have to rebuild. I mean, these hurricanes both through rather quickly, uh, and it can cause all sorts of devastation, but the rebuilding usually actually helps the economy at least in the local economy, and of course Governor De Santis is very much eyeing a run for the for the presidency, so he knows all eyes are gonna be how and how he reacts to this, and he's gonna want to be able to turn things around as quickly as possible.

So I actually think this is gonna be something that's be slightly bullish for the economy at least for over a near term basis, and something that's gonna be a serious, serious problem. So I guess I'm usually a contrary, and I'm a little bit of a contrarian here too. Yeah. I wonder whether just sort of looking under the hood on a sector basis, whether you're thinking what like construction stocks might do well after this exactly you know somebody

like home Depot Lows. These these are types of of of of companies of that should do you actually did should do quite well. And you look at both of those stocks company home people on Lows, I mean they're flat on their back though they're oversold on a technical basis, and they look quite enticing here. So these you can see a surprising rally in some of these names. What about more broadly, are you are you looking at the

bottom for this market overall. I mean we're looking at futures well below one percent and adding to the loss as we've seen over the last several sessions. Yeah, I mean, the one thing we have to worry about. I mean again, I've I've been negative all all year long. I mean I I starting in December, I was telling people to raise cash and yet over and during the summer, during the during the rally, I said it was a you know, it was a bear market rally, and said raise cash

there too. The one thing that we worry about that, you know, And I do think that that we will eventually get down to the three thousand, probably three thousand, certainly three thousand again, something I've been saying all year, but uh, we should see, if not at some point soon. The one thing I'm concerned about, of course, is we need people say we need this people wash out trade or we get some sort of a blow up with

a hedge fund blowing up or something like that. But the market is is really starting to get quite oversold. And it's not just the stock market. The bomb market is very very oversold, and the dollar is just the oppos getting extremely overbought. And the sentiment and all those things. The sentiment for the bomb market and the stock market are very very low. People are very bearish and very

very bullish on the dollar. These are the types of things that usually, uh create at least short term release defense. So I look for a rally at some point soon in the bond market, in the stock market, you know, the bond market. A rally would mean that race, of course would come down and the dollar calling back. I

think it's gonna surprise some people. Uh, but there's just everybody is on one side of the boat right now, and uh, we're getting ripe for for at least a relatively sharp even if it's even if it's a relatively short term bounce. So are you saying fight the Fed, Matt? I mean you hear from Fed officials. They're really doubling down on the idea that if not rates going up even further, that at least they're going to have to stay high for quite some time to get a handle

on inflation. No I I I I don't want to stay fight the Fed. The two things on this number one, and I've been saying saying that, oh you're long, don't fight the Fed. Don't fight the FED. Why people keep fighting the Fed? Um, But I just so it's really just more of a short term a rally and in others I wouldn't be shorting the rally. Here, I wouldn't be buying the dollar here, I wouldn't be shorting the

bond market here. I just think that that although we could get one big wash out here in the next few days, I think we're gonna see a bounce that lasts for for a week or two or maybe even three. But but but that will probably another opportunity to to uh to to take you know, race race some cash. But one thing I will say though about the FED is that you know, definitely don't fight the FED. But they are getting there's a few of them getting a

little bit less hawkish. I mean we saw that yesterday with Evans and last night uh Sanrcisco president Daily saying she's saying that, you know, we don't want to push it into recession. So there, you know, sometimes they're a little market markets, uh market dependent when it comes on when it comes to the rhetoric, and some of them are starting to ease off a little bit, so that could give the market a little bit of relief at some point soon as well. So it's just thirty seconds

left here. Matter. Are you looking for a FED pivot to slower rates sometime this year? Definitely not. I think anything we're saying now is just trying to calm things down. They don't want the market to go straight night and down on the straight line, but I would. I do not see them pivoting at all. I think that if we do get the bounce, and I'm talking about, it will be another opportunity to raise cash. I think the sp is headed, We're gonna we're headed towards three thousand

or very close to that level. So I do not see a pivot at all. And again, the SMP closed yesterday thirty six forty seven. Thanks for this as always, Matt, good speaking with you. Matt Maylee, Chief market strategist at Miller tay Back, Karen A. Ry Nathan, thank you. It

is five fifty four on Wall Street. Let's get to a legal story where watching this morning while the Justice Department is taking American Airlines in Jet Blue Airways to court challenging their partnership, which allows the airlines to share

flights and customers. The d o J is under pressure to have something to show for its trust busting efforts after the collapse last week of two of its cases, one targeting United Health Groups seven point eight billion dollar acquisition of Change Healthcare and a second between two of the US's largest sugar refiners for more Bloomberg's doing. Grosso speaks to Bloomberg Intelligence senior litigation analyst Jennifer Ree. Did anything stand out to you in the opening statements? You know?

I think what stands out to me in the opening statements is just how they're really incompletely and totally opposite ends. I mean, to hear the Department of Justice attorney, this is absolutely the worst possible thing that could happen. It's

going to cost millions of dollars. It's a consolidation. It's essentially a merger of two airlines in an industry where we have terrible trouble now, too much consolidation already, far too concentrated, passengers that are treated horribly, fares that are going up, and this is only going to contribute to that. And then to hear the other side, it's wildly pro competitive. If it's going to be fantastic, we're going to be able to compete much better against Delta and United. It's

going to cause everybody to compete. And then the Department of Justice attorney has to ask, American is the biggest airline in the United States, possibly in the world, So why does it need Jet Blue in order to compete against Delta and United? And I think, you know, there's a really good point there, but they're they're just really why at opposite ends of what the impact of this

alliance is. American and Jet Blue have a year and a half of records to show what's happened so far, even though they knew that they were under the microscope. But the Justice Department is just going to have theory, that's right, And that's absolutely the difficulty of it. Now in every merger case, all they really have is theory.

Here to some extent, they have a presumption of potential anti competitive effects because if you just purely look at market shares and an airline deal, you know, the way they look at them are the different numbers of airlines and their share in city of the city. So you look at a route, let's say it's New York to Miami, Florida. You look at that route, you look at the competition in the route, and that's how you basically look at

market shares. So there's this big table and long list of market shares, and under the merger guidelines at the Department of Justice uses you can do some basic maths and the judges use those guidelines and they follow those guidelines. So the DJ has I would say, just a tinge more than just theory going in, because they do have some market shares that show that these are concentrated markets that of course will rely on or depend on whether the judge actually views this as a merger or not.

And as Bloomberg Intelligence Senior litigation analyst Jennifer Rees speaking with Bloomberg 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.

Futures this morning moving lower, SMP futures down forty four points, now futures down two hundred eighty two, nasday futures down one eighty three and still ahead. On Bloomberg Day Break, I check on the business headlines and all the news you need to start your day. This is Bloomberg.