This is Bloomberg day Break Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world, and straight ahead on the program, here comes some big retail earnings. I'm Tom Busby in New York.
I'm Stephen Carroll in London, where we're looking ahead to the next CPI print for the UK amid a gloomy economic forecast from a leading think tank.
I'm Derek Krisner. We'll look at the most rapidly growing ev market in the world.
I'm Kaylie Lines in Washington, where all eyes are on Georgia ahead of a potential fourth indictment for former President Trump.
That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg E love Them for your owner, York, bloombergon ninety nine to one, Washington, d C Bloomberg one O six one, Boston, Bloomberg nine sixty, San Francisco, DAB Digital Radio, London, Sirius XM one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business App.
Well, good day to yank you. I'm Tom Busby, and we begin today's program with a big week ahead for retail earnings with a look at what that tells us about the US consumer and maybe what to expect in the months ahead. Now, this week we hear from three giants, Home Depot on Tuesday, Target on Wednesday, and the biggest of them all, Walmart on Thursday. There are other familiar names TJX, Ross Stores, Teen Retailer, Buckle, but we're going to focus on the biggies now for what we can
expect to see. We're joined by Bloomberg News retail reporter Brendan Case. Brendan, thank you so much for joining us.
Thanks for having me on, Tom.
Well, let's start get right into it. Home Depot HD cut its financial forecast in May as shoppers finally post pandemic kind of tap the brakes on spending on their homes and yards. What do we expect to see from Home Depot.
Yeah, we're going to be looking closely for any clues on how the home improvement market is doing. That had been such a strong area of consumer spending during the pandemic, and even the you know, the few quarters coming out of the pandemic, it finally slowed down in the first quarter. There were also some some sort of temporary issues like weather, but definitely you are starting to see some softness in that in that category, and of course the whole outlook
for housing is wrapped up an interest rates. There's a lot of different signals coming out of the sector. What Home Depot is going to tell us is, above all, how how much people are spending on home improvement projects, both in terms of do it yourself projects and also contractors, which is an area where Home Depot is really strong.
Yeah, and it's really a proxy for in a way, for the entire housing market because, like you said, the home improvement, but also all that building going on the contractors, and we have seen, despite the ups and downs in the housing market, home construction consistently strong.
Yeah, that's exactly right. And Home Depot likes to say that it can prosper whatever the environment is. If there's not a whole lot of new construction, there's going to be a lot more renovations. And they went either way that are given weekend a little bit in the first quarter, especially as the home improvement projects, you know, the remodelings kind of you know, there were signs that that it was slowing down, especially as reflected in Home Depots business.
The new construction is certainly something that's going to help them though, and we should get a little more information from them about how they see that mix kind of evolving throughout the year and what their expectations are for the remodels and also for the new homes.
Now, I do have a question about Lows. For a long time number two to Home Depot. Home Depot obviously the leader and the do it yourself market, but they've been making some pretty big gains. They don't report to the following week, but are we seeing Lows kind of evening the playing field with Home Depot.
Yeah, and this adds a company specific issue for Home Depots earnings next week. Certainly they're going to reflect a lot of what's going on in a macro sense, but just from a company from a competitive standpoint. You know, they've been such a leader for so long, but one of the general themes in that part of the retail market is that Low's really has been catching up. You know, it followed Home Depot by launching same day delivery last month.
It's trying really hard to get more professional contractors on board, which would help Lows make inroads. And what's been a real stronghold for Home Depot. There's a lot of signs that it's gaining traction, and you know, that's a real sort of direct head to head rivalry. And so just as we'll be looking for macro clues in Home Depot, we also want to know, you know, if there's any kind of signals in there about any ground they might be losing to their chief rival.
Next there's Target. It's likely to post its big a sales drop in more than six years. A lot of Americans starting to pull back on discretionary spending things like toys, apparel, electronics. That shift began abruptly last year. Still weighing heavily on Target.
Yes, this could be a real milestone quarter for Target in a lot of different ways, not necessarily negatively, but you know, there is this expectation on Wall Street that sales are going to decline in the neighborhood of about three or four percent. There are some indications that the drop could be could be even worse. People are going to be watching that number really closely. And you know, the big picture here is that Target was one of the big winners in the pandemic. A lot of demand,
a lot of people buying stuff from Target. They did a great job of sort of shifting to e commerce as well as stores during the pandemic, and they did really well. That really seems to be running out. And problem number one is exactly what you said, the pullback and consumer spending from discretionary goods, electronics, toys, apparel, home goods, all the type of products that Target is typically so good at merchandising, with their whole sort of cheap chic
approach to to to their their product lines. That's just been a real tough part of the market for more than a year now. People bought so much during the pandemic that there's less demand than there was, you know, just because they don't need as much new stuff number one and number two, with inflation having been so high last year and into the into the beginning of this year, a lot of consumers had to just focus on, you know,
buying the essentials, the groceries. That's a business that Target you know, does have in some significance, but not to the extent that Walmart has or obviously grocery chants have. And then, of course the third pressure on their sales is the shift in spending towards services.
And they're also coming off calls for a boycott. This is related to their LGBTQ merchandise collection for Pride month and that that may have really hurt things.
Yes, and this is something that we will learn a lot more about next week. In detail, the company really hasn't commented on exactly what the effect on sales was. But as you'll recall, back in May, towards the end of May, they got caught up in a big kind of culture war controversy where you know, they've always had a pretty a pretty big, a pretty significant collection of merchandise for Pride months. In June this year, there were some some criticisms on social media, particularly around some of
their their products. There was a bathing suit that that that caused a lot of controversy, and there was a misinformation there were there There were some some criticism of the bathing suit supposedly being designed for kids, which was not accurate. It was a it was an adult product, but nonetheless it turned into sort of a public relations fiasco for Target and a real hit to its brand among some shoppers. There were calls in certain parts of social media and online, you know, to do a boycott.
As you said, we do not know exactly what kind of hit that delivered. Was it big, was it small, was it noticeable, was it you know, we just don't know, and we should learn a lot more next week. But that you know, clearly had some effect, and so that'll be another headwind for them.
Now Walmart, if there's any chain that's going to benefit from high inflation and a pullback in consumer spending, it's going to be Walmart. What do we see happening there?
So Walmart's really been hitting the cover off the ball for about a year now. They had a huge problem last year, as did Target in terms of getting overstocked on inventories. They both companies guessed wrong and really badly wrong on how much of the discretionary products they were going to need, and so you know, for both of them that led to a lot of markdowns last year
and a big hit to profits. But for Walmart, at the same time, with inflation going up, a lot of people were thinking themselves, well, where do I get the best prices? You know, prices are going up, but where can I find the best prices on food, on other basic goods? And a lot of them shows Walmart Walmart has talked a lot about upper income households, households with incomes over one hundred thousand dollars accounting for you know, half to three quarters of the gains in their comparable
store sales. And so they've been getting a lot of trade down activity even as they see some weakness in their core customer and in kind of the middle income or lower income of consumers. But if you net it all out, what they've gotten at the big uptick in sales that's expected to continue, But the question is going to be how much with inflation coming down, you know, one challenge for Walmart is going to be whether they can hold on to some of the more affluent shoppers
that they've gotten at the same time. You know, with obviously we're not in a recession. The job market is still strong, but there's a lot of pressure on lower income consumers right now, and for Walmart, you know, it's going to be sort of a question mark how well they can hold up well.
A lot to look forward to. Brendan Case, Bloomberg Retail Reporter, thank you so much for joining us and coming up on Bloomberg Daybreak weekend. Leading UK think tanks as Britain must confront reality rather than reject it when it comes to its economic flight. We'll explain. I'm Tom Busby and this is Bloomberg. This is Bloomberg Daybreak weekend, our global look ahead at the top stories for investors in the coming week. I'm Tom Busby in New York. Up later
in our program. Former President Trump could be in the headlines again this coming week. But first, a leading UK think tank says Britain must confront reality rather than rejected when it comes to its economic plight. This ahead of the latest UK inflation data coming in the next few days, expected to show price increases continuing to plague the UK for more. Let's head to London and bring in Bloomberg Daybreak Europe anchors Caroline Hepger and Stephen.
Carroll Tom we get the next set of consumer price inflation data in the coming few days. Prime Minister Rishi Sinak, of course, has set himself the goal of harving inflation by the end of the year from a starting point at that time of ten point seven percent. There was a point earlier in the year where that looked really quite tricky, like a really tall order. The last inflation
print has shown prices cooling. The Bank of England Governor Andrew Bailey, who spoke to Bloomberg pretty recently, was warning Stephen that the last male in the inflation fight is, you know, looking very difficult. He was very committed to it, but it looks like quite a long mile Carolin.
This is something we've heard over and over from the likes of Dan Hanson from Bloomberg Economics, who tells us that the easy bit is coming down the higher level inflation. When that number starts to get closer to that two percent level, that's going to be the really difficult part, and that's the part where you enter into the risk
of overtightening by the Bank of England. Now, the latest forecast from Bloomberg Economics does see the UK CPI coming below five percent by the end of this year, but as you say, it's a very shaky path and there are lots of quite gloomy opinions out there about the trajectory for the UK economy.
Absolutely so. That includes the National Institute of Economic and Social Research, a think tank here in London, which came out in the last few days with a major bit of reporting around where they see inflation. Economic growth, inequality and on all of those funds, it's pretty bad news. NISA sees the UK economy stagnating for years, says the UK is actually unlikely to return to pre pandemic levels of activity before twenty twenty four.
Yeah.
Look, that's something that makes the UK economy an outlier in the G seven as well. The outlook for inflation as well as a very slow climb down. They're saying they're still seeing inflation at two point three percent in twenty twenty five. They've also pointed to rising inequality among the regions of the UK, falling wages in some places, and a government whose hands are tied because if it's
continually spending more than it's bringing in. We've been speaking to the director of NISER, jag Jit Chada about this latest report.
It's not a very pleasant picture. And I think in as an economy, as a set of decision makers and policymakers, particularly with the election in front of us next year, I think it's time to come. The time has come to confront reality rather than reject it. So if we could think of the report as a plane of another description of where we are and where we're likely to go, I think our ultimate hope is that could prompt better policy.
So what we have is an economy that went into COVID with a weak structural supply side, as well as having just affected Brexit breaking relations with our nearest and richest trading neighbors. The COVID crisis revealed all kinds of weaknesses in our health service that still haven't been addressed that seemed to me to be intimately linked with labour supply and the economy. Subsequently, that labour supply has been hampered because people fearing ill health haven't returned to labor force.
That's older people, but as well, we find ourselves short in many sectors, with vacancies still at elevated left levels. The food and energy crisis, created by the increase in by Russia's invasion of Ukraine led to a large increase in energy and food prices, which we don't produce largely on the margin. That meant that as an economy, we suffered a fall in income what economists call the terms
of trade shock. That was not the same for example, for the United States, that is a net producer of energy and food, but for us it meant that we were importing goods that had become more expensive, and for a large time at an exchange rate that had depreciated. You remember sterling was in decline for much of twenty twenty two. This then upward pressure on inflation as well as the constricted supply side. That's meant the Bank of had to respond very rapidly to that and raise interest rates.
And when we had all this up, it leads to an economy that on average is not likely to grow very much at all, and I think that's something we all need to think about hard except and address.
You are tearing strips off the government as far as I can see in this report. You talk about facing reality. How much of this is the government's fault.
Well, we've had an immense amount of political churn in the last three or four years. You don't need me to go through all the episodes, but I would say the height of that was the mini budget crisis of September twenty twenty two, which is certainly scarred in my memory, if not yours. That demonstrated that there are no quick fixes to the problems that we face in the economy.
Nurturing the supply side, whether it's in the public sector, the health sector, transport, or in the private sector by getting firms to invest, to encourage them to invest both in physical and intangible capital, but also in their workers' skills is something that will take a generation or so to achieve. No quick boost is going to work here, and I think we're kind of at the end of those short run political plans a dash for growth or
some announcement that will quickly lead to growth. It's not really the way the supply side of the economy works. And we really need our political classes and decision makers to accept that the decisions that they now may make, ultimately they're going to help the supply side of the economy, ones that won't necessarily lead to benefits over the political cycle.
And one of the problems we have is that we're focused always on the next election, which means we're looking for quick fixes, which we can see time and time and again episode after episode political cycle of the political cycle just haven't worked to have five years without growth
on average, and alongside that widening disparitied. If we look, for example, that where we think that on average workers in London will be by the end of next year, their real wages will be seven percent above the pre COVID peak, whereas if I take one region at random, the West Midlands, they will be five percent below. There's widening disparities when we take the average of That is the reason we have such low growth in the economy.
We need consistency of planning to help the other parts of the economy outside of London and the Southeast catch up, create productivity, high level, high income jobs that will propel this economy onto a better path. And we've been stuck at this level for quite some time.
There are a couple of points that I think are really important though, to pull out of your report. One the idea that the UK is at nearly full employment, a very very low unemployment, and that we still haven't managed to grow, and that also there isn't actually much fiscal leeway, are you The amount of money that the government is bringing in in order to achieve its goals because we're not growing is very very little, And that crunch I'm not sure people necessarily understand. Why is that
so important? You know, to understand that, I mean that we would be a real outlier in the G seven, you know, to have so little fiscal headroom.
I think that's absolutely right, and that's the critical question that any government will have to face when it wins the election next year. We see unemployment rising a bit, something like just slightly over five percent in a year and a half or so. That's not high by historical standards at all, and what you would expect under the circumstances if we were at full employment, with people paying taxes on their income, that we were then being in
fiscal balance or a small fiscal surplus. Sadly, of course, because in part because of these income inequalities that I've been talking about, even those high levels of employment don't generate sufficient taxes to lead to the balance budget or the fiscal surplus that we would require that would then give us funds to address the fundamental lack of public investment in the economy and also to help grow the skills base that we see around the country.
That was Professor jag Jitchado, who is director of the National Institute of Economic and Social Research, speaking to us here on Bloomberg Radio as we get ready, of course for the next UK inflation reading at what it means for the economy.
I'm Stephen Carroll.
And I'm Caroline Hepgar here in London.
You can catch us every weekday warning here for Bloomberg Daybreak Europe, beginning at six am in London and one am on Wall Streets.
Tom, thank you, Steven and Caroline, and coming up on Bloomberg day Break weekend. Former President Trump in the headlights once again. I'm Tom Busby. This is Bloomberg.
Broadcasting live from the Bloomberg Interactive Brokers Studio in New York. Bloomberg Elemon three oh to Washington, d C, Bloomberg ninety nine one to Boston, Bloomberg one oh six one to San Francisco, Bloomberg nine sixty to the country, Serrius XM Channel one nineteen to London DAB Digital Radio, and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak Weekend.
I'm Tom Busby in New York with your global look ahead at the top stories for investors in the coming week. Another indictment could be coming for President Trump. For more, let's add to our Bloomberg ninety nine one newsroom in Washington and Bloomberg Sound On. Co host Kaylee Lines.
That's right, Tom, the former president has already been indicted three times, first in the state of New York related to hush money payments to adult film actress Stormy Daniels, then in Florida, where he was shit with federal charges in the classified documents case, and most recently another federal indictment brought in Washington over efforts to overturn the results of the twenty twenty election and obstruct the transition of power.
And now a fourth indictment could be coming. The district attorney in Fulton County, Georgia, Fannie Willis, is widely expected to bring charges related to efforts to overturn the election results in that state. President Trump was actually talking about that this past week in an interview on Newsmax.
And I don't know what she'said.
I really don't know.
All I know is she could have done it two and a half years ago if she was going to do something. And this is about a perfect phone call, a call where I'm questioning the election. I'm telling them that in my op the election was rigged, and this saying that I was I did something in Greek I didn't do or anything wrong. I believe I won that election by many, many votes.
Of course, he's referring to that phone call between himself and Brad Raffensberger, the Georgia Secretary of State, in which he said, quote, I just want to find eleven seven and eighty votes. So let's get more on this potential indictment that is seemingly just around the corner. David Wriaco's Bloomberg Legal reporter and Wendy benjamins in Bloomberg Washington Senior editor are joining me now. So David, just to you first, what are we expecting this coming week in Fulton County?
What charges could we be looking at here?
Well, the prosecutors who work for Fulton County District Attorney Fannie Willis have been investigating this case for two and a half years and they are expected in the coming week to present evidence to a grand jury that could return an indictment against Trump and his ally as it could be this coming week or the week after that. But they have spent a lot of time assembling evidence.
There was an advisory grand jury convened last year that heard from seventy five different witnesses, and so now they're presenting it to a different grand jury that can actually
bring criminal charges. And what we're hearing is that Fannie Willis could go big, as many legal observers in Atlanta believe she will, and in so doing, she would probably bring charges under the state racketeering law, or perhaps just under election fraud and conspiracy laws, and such an indictment could involve Trump and a number of his allies, as many as twelve different people, we have heard, and there's a variety of different incidents that they're looking at.
Yeah, and we've also heard from the sheriff in Fulden County who's indicated that the former president would be treated just like anyone else, mugshot included, and David, that could make this case a little different than the others we have seen.
Right in the other cases in which he was criminally charged in federal court in Washington and in Florida, and in the state case in New York, he was not mugshotted. And I would just say that the sheriff said that that would be their plan unless the judge who receives the case tells them otherwise.
So Wendy to bring you in here on kind of the political implications of all of this. This, if the pattern follows, is likely just going to fire up the former president's base even more. He has said multiple times in the last week and change that he just needs one more indictment to since the twenty twenty four race.
Yeah, and like I said before, I don't think he's necessarily wrong on that, at least on the presidential nomination. He has a you know, raised more money every time he's indicted, or raised money every time he's indicted. It does seem to be tapering off as they become sadly routine for him to do this, but it's you know, it seems like the indictments are emboldening him. But I think the more he talks about the case, the more that things happen not in his favor, either through pre
trial rulings or later on convictions. If those happen, that may begin to chip away at everything but the die hard base, which is still only about a third of Republican primary voters.
But he's still going to face the challenge even if there are people who want to show up and vote for him in the primaries, that he's going to be trying to campaign in all of these primary states that are critically important at the same time that he's also going to be dealing with court dates with trials and Wendy, that's just calendar wise, very difficult.
Calendar wise, very difficult. Although Trump is not a traditional candidate, and that he'll stand next to a buttercow at the Iowa State Fair and all of that. He likes to do his rallies. He likes to fly in on his jet, you know, keep the jet in the background, do the rally and all of that. And so he may be able to, you know, given his wealth and private jet and all that, be able to maintain both schedules, although it's going to be nutty and completely unprecedented in American history.
But I think one of the larger issues for him, and why his attorneys are talking so much in their defense about this was my first Amendment right to say all of this is because they know they will not be able to control him on the campaign trail. And if the first Amendment is their defense, then he can call the judges nasty women, he can call the prosecutor deranged, he can talk about the case in a way that you know, we'll probably drive everyone with a law degree
absolutely crazy. But Hill insists it's his first Amendment right until a judge, and David, you may predict this better than I can slaps a gag order on him.
Judges are loath to put a gag order on a defendant, but Trump has a long career of pushing the boundaries, and he's trying to push the boundaries now in this case. I mean, as you said, when his defenses so far that he's articulated are mostly First Amendment. In the Jack Smith case relating to the election, Jack Smith said, this goes well beyond his free speech rights. But judges want to be careful not to put two title leash on Trump.
And so that makes him much different than your average criminal defendant because he has such a big platform, and it's quite extraordinary and unprecedented for a defendant to be attacking the prosecutors, attacking the judges, attacking witnesses in the way that Trump is. And you know, it presents a real challenge for everyone in the criminal justice system to know how to deal with that.
Well, there's so many ways in which this is unprecedented. Because also I may be wrong on this, but this could be the first time that we could see Theoretically, we're still a long ways out from November of twenty twenty four, but the defendant in all of these cases, if found guilty, could be in a position to pardon himself in the future. But David, there is a distinction to be made there. That's not the case in Georgia with the state indictment, right.
Right, he cannot pardon himself on state charges in either Georgia or New York. He could do it on the federal charges, and so those two cases loom over him and present a real threat to him and his future in the way that the federal cases don't.
Wendy, it seemed like you had a thought on that.
Actually, David said exactly what I was thinking is that I think there will be an exploration if he becomes president again and if there are convictions on his record, there will be a real study of the so called absolute powers of pardoning of the president, because the Constitution says a president can grant a pardon, and that will take some judicial interpretation to decide if you can grant a pardon to yourself. If there's any president who would
do that, it is certainly Donald Trump. But on state that's only on federal cases. On a state case, there's not a thing he can do about it.
Well, of course, all of this is assuming he may be found guilty of any of these allegations, and he still has to go through the full judicial process that everyone else is entitled to here in this country. Thank you so much, Wendy benjamins In Bloomberg Washington Senior editor and David Voorakis, Bloomberg Legal Reporter. We appreciate it. And Tom all our eyes turned to Georgia this coming week.
Thank you, Kaylee. That was Bloomberg's sound on co host Kaylee Lines reporting from our Bloomberg ninety nine to one newsroom in Washington, and you can hear sound on weekdays one to three pm on Bloomberg Radio. I'm Tom Busby. This is Bloomberg. This is Bloomberg day Break, Weekend, our global look ahead at the top stories for investors in the coming week. I'm Tom Busby in New York. China's
EV market is fast growing. We just had Chinese electric car maker Lee Auto reporting better than expected quarterly results earlier in the week. Let's get to Doug Krisner, co host of Bloomberg Daybreak Asia.
Tom and the week ahead. We'll get earnings from the Chinese ev maaker x Pong. So we thought it would be a good time to check in on China is EV market, where the adoption of electric cars has been rapidly growing. You know, in twenty twenty two, more than half of all global EV sales occurred in China. For a closer look, I'm joined now by Bloomberg's Danny Lee Bloomberg Asia Transport Reporter, joining us from our studios in
Hong Kong. Danny, It's always a pleasure, and I want to begin with the big picture first, the domestic EV producers in China are clearly beating their foreign rivals. Eighty percent of all battery evs in China are now coming from domestic producers. And among the top sellers, I think that only the top ten. I think only Tesla is in the ranks, and German brands no longer play any role in the top ten. We can remember a time when foreign car makers were setting up joint ventures in China.
Now they seem to be fading into the background. How did we get here?
Yeah, it's a bit of a role reversal from the time, maybe they said twenty years ago, where you saw a lot of the foreign auto makers like your Volkswagens, looking at China as a huge growth market potential, but they had fossil fuel engines, and then we've seen the Chinese auto makers coming in with big bets, spurred on by
the central government to look at new technologies. This is why we've seen huge state support in the likes of battery technology and the future, which is battery electric powered vehicles. And what China has done is managed to have a huge headstart ten fifteen years ahead of anyone else in the market to develop initially not the best looking, not
the best spec powered electric vehicles. Now they have market leading, very stylish, very affordable at scale, very affordable evs and you look at where the competention is now in globally, they're nowhere to be seen in terms of in terms of matching up to what China has to offer, apart from Tesla, who's made a lot of the same kind of footprints of early bets into battery electric technology and battery evs.
Wondering now about how sales are distributed. If you look at the premium category we just heard from Liato in the last week, the numbers seem to be very good. In revenue guidance was also very strong. More of a mainstream brand, and I'm thinking, like a Byd or a Glie, is there a real like split in the market here premium versus mainstream?
I think there is a There is a consistent group of brands in particularly around the top ten, who in the last month in July reported sales that are near record hised or were record highsed. So you saw your Byds, you saw your your NEOs, and your your Li Auto's touching those highs. And then if you look at the wider market, even in just the wider auto space, the figures we saw in China showed the market contracting two
point two percent. So you and yes, So in a way, there's a sales are coalescing around major brands because they have either the best price or the best lineup. And it's helped that some of the ev makers of late, like your Li Auto's and your Neo's have brought out new and more appealing models. And it's been quite a trial and error phase for them of late where they've brought out new models and they haven't always been well received or they haven't added in technology that everyone always likes.
So with their most recent models they have been well received and what we have seen is higher numbers of sales coming through, so which is why you see someone like the Li Auto, who's gaining the confidence of raising its revenue guidance into the third quarter, also estimating higher sales in the third quarter. Although as we've seen in the market reaction last week, Le Auto's le Auto's stock reaction was pretty lackluster.
Right, good stuff. Danny Lee is Bloomberg's Asia Transport reporter. I'm Doug Prisner. You can join Brian Curtison myself weekdays here for Bloomberg day Break Asia beginning at six am in Hong Kong six pm on Wall Street.
Tom, Thank you, Doug, and that does it for this edition of Bloomberg day Break Weekend. Join us again Monday morning at five am Wall Street time for the latest on markets overseas and the news you need to start your day. I'm Tom Buzzby. Stay with us. Top stories and global business headlines are coming up right now.