Bloomberg Audio Studios, Podcasts, Radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today, Dared.
We begin with the rebound in markets, and we're joined by Bloomberg's Critty goup to quite the bounce back in Asia overnight.
Critty a massive bounce back go start on the Japanese stock market. There the top x a wopping nine point three percent to do even better than ni K two to twenty five, closing over ten percent hired. This of course compared to the twelve percent drop yesterday, So in about twenty four hours, in two sessions time, you did not see a complete pairing back of the losses, but pretty close, some pretty good volatility that is likely to
sustain throughout the week. You're also going to see a similar story, Nathan, over in the South Korea index member chips is still very much the story. So any index with exposure there was saking a lot of the extra turmoil. Today they are seeing extra gain. So the COSTPI over in South Korea hired by three point three percent, COSDAK closing up over six percent.
And what are we seeing as far as European trading goes critty, so.
A little bit of a mixed picture when it comes to Europe. You would think some of the positivity would kind of feed on over and it's doing the exact opposite. Actually, So when you do look at say the Eurostock fifty, it's actually down by two tens of one percent. You're not seeing that same optimism. To be fair, you also didn't see that same drop to that extent yesterday, but still a two percent drop yesterday. About on average across from the indexes today you are seeing most of these
indexes about flat. The French index, however, down about half percent, taking the biggest hit off all the major indices.
All right, Bloomberry's Cretti, Gupta and Credie will be checking in with you throughout the morning, of course. And as we said earlier, we are seeing a bit of a bounce back in US futures following yesterday's sell off. The SNP five hundred lost three percent, extending a tumble from its peak to eight and a half percent. The tech heavy Nasdaq one hundred also lost three percent. It is now after its worst start to a month since two
thousand and eight. Lindsay Rosner is head of a multi sector investing at Goldman's Sacces asset manage.
The market is getting into a healthier zone and markets don't move, even though I think we've been pretty used to it recently in a straight lineup. We have to understand that these kind of drawdowns and replacements happen, and this is why from an active management seat where we are, we want to have the steady hands in the market to add where it makes.
Sense, golmans I said. Management s Lindsay Rosner. Wall Street's fear gauge, the VIS was above sixty five at one point yesterday. Today it's recouping and is around thirty three.
Karen is. Speculation grows on whether the Federal Reserve will cut rates ahead of its September meeting. Some are throwing cold water on the idea, including Bloomberg opinion contributor Mohammad al Aarian.
I am of the view.
That this will We will look back on this and say it was an overreaction in certain parts of the markets and the market got carried away by demanding into meeting cuts, by demanding seventy five basis points in September.
It's not going to happen. That's Bloomberg opinion columnist muhammadel Arian.
Nathan FED officials are also dousing hopes of a rate cut before September. San Francisco FED president Mary Daily is indicating that cuts should begin in coming quarters.
You know, from my mind, we've now confirmed that the labor market is slowing, and it's extremely important that we not let it slow so much that it tips the that tips itself into a downturn.
San Francisco FED president Mary Daily added she still sees the labor market as reasonably solid, as most employers are not cutting jobs.
Well, Karen.
One of the hardest hit tech stocks during the recent sell off was in Vidia. It is down about twenty five percent from its recent high, and we've learned in Vidia CEO Jensen Wang has been unloading shares. He sold nearly three hundred and twenty three million dollars worth in July. Combined with shares sold in June, Jensen Wang is unwound almost a half billion dollars in his in Vidia steak since the stock hit its peak amid the AI fueled rally.
Nathan investor Kathy Wood is defending her sale of Nvidia shares before the company's huge rally, we cut up with the Arc Investment ceo.
We wrote it up one hundredfold. Would we have liked another triple? Sure, But here is the most important question for Nvidia to be. To deserve where it is right now from a valuation point of view, other companies out there must be having phenomenal results.
Our investment CEO Kapy Wood made the comments on the Bloomberg Tiger Money podcast.
Now, Karen's the latest on the presidential race. It is officially a race now. Vice President Kamala Harris has clinched the Democratic nomination for president. We get the very latest from Bloomberg Steve Potisk in Washington.
The virtual roll call vote wrapped up last night and the Democratic National Committee says the Vice president won ninety nine percent of the delegates votes. The process was a formality. No one else was on the ballot. Now the question is who will join Harris on the ticket. She's expected to announce her running mate today. Over the weekend, she met with at least three contenders, Mark Kelly of Arizona,
Pennsylvania's Josh Shapiro, and Tim Walls from Minnesota. Harris is kicking off a seven battleground state tour this afternoon in Shapiro's home state in Philadelphia. She'll formerly accept the nomination later this month at the Democratic National Convention in Washington. Steve Potisk Bloomberg Radio.
All right, Steve, thanks well. Back in Washington. It's going to be a very long couple of days for Boeing. The planemaker is facing its most extensive hearing yet into the fuselage blowout back in January that exposed multiple quality lapses at its factories. The National Transportation Safety Board is spreading the questioning over twenty hours today and tomorrow since
the accident. Boeing is named a new CEO, has agreed to buy back its supplier, Spirit Aerosystems, and it's pleaded guilty to a conspiracy charge from two previous seven thirty seven MAX crashes in Karen.
Illegal loss for Alphabet. This morning, a federal judge has ruled Google illegally monopolized the search market through exclusive deals. Google made twenty six billion dollars in payments to be the default search engine on smartphones and web browsers. The judge ruled those payments effectively blocked any other competitor from succeeding in the search market. This is the government's first major antitrust victory against a tech giant in more than two decades.
And it's time now for a look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's John Tucker. John, Good morning, and good morning, Karen.
Debbie is now a killer downgraded from hurricane to tropical storm. It damaged homes of businesses, sent floodwaters rising across sweeping power outages across Florida and Georgia. It led to several fatalities in Georgia. The mayor of Savannah issue to curfew.
It's going to catch a whole lot of people by surprise.
Bloomberg meteorologist Rob Carolyn is tracking the storm.
John Trockle, Storm Debbie is located on the coast of Georgia this morning, and this system is going to be responsible for some very heavy rainfall over the Eastern Carolinas in Georgia over the next several days. Some places are going to receive an excessive two feet of rain from this system.
Bloomberg Meteorologist Rob Carolyn. Several US personnel were injured in a suspected rocket attack at a military base in Iraq. The attack comes its Tensions across the Mideast are spiking following the killings last week of a senior hensbela commander at Lebanon and Hamas's top political leader in Iran. The US and its allies are working to head off a wider conflict. On Bloomberg's Nancy Allons is more from.
Washington, Secretary of State Anthony Lincoln says he's been speaking with leaders from Cutter and Egypt, the two countries who've been helping lead negotiations for a ceasefire.
It is a critical moment. We are engaged in intense diplomacy pretty much round the clock with a very simple message.
All parties must refrain from escalation. Iran has said it wants to avoid an all out war, but to create deterrence against Israel. Israel says its forces are on a hair trigger alert to carry out defensive and offensive missions. In Washington, Nancy Lyons Bloomberg Radio.
Most New York City restaurants taking part in the city's pandemic here outdoor dining program haven't sought permits to make their sheds permanent, meaning they'll have to be dismantled. The critics called the outdoor structure's eye sores that attracted rats and took up parking spaces, while proponents say they inject life into the urban landscape. Michigan voters today will decide which Republicated Democratic candidates will compete in November for the
state's highly coveted open US Senate seat. In addition to several of the nation's most competitive US House races, many Democrats have coalesced around REPRESENTATIVELYSSA slot Giny, and the Senate race, while Republicans have united behind former Congressman Mike Rodgers, who received an endorsement from Donald Trump earlier this year. Both candidates vying for the seat left open by longtime Democratic Senator Debbie Stabenhaw's retirement, but they must first defeat underdog challengers.
In today's voting, Global News twenty four hours a day and whatever you wanted with Bloomberg News Now, I'm John Tucker. This is Bloomberg, Nathan and Karen.
All right, John, thank you any time now for the Bloomberg Scores update with John Stashauer.
John, Good morning, Yah morning.
Karen.
Was already going to be a long road trip for the Mets, with games in Anaheim, Denver, Cy, Adam. Then they had a rainout in Saint Louis. Had to make it up yesterday. They stopped in, got great pitching from Sean Menia, broke the game open in the fifth inning.
Is one two line down the right field lie.
That's a face hit by Taylor.
Going into the corner.
Alvarez is in, Peter is in never getting waved around toward the plate.
The throat of the plate is not in time.
Three run doubled all right for Tyrone Taylor WCBS. The Met's won six to nothing. What a free age and signing man I has been his last two starts. He's pitched fourteen scoreless innings, allowing only eight hits with one walk twenty one strikeaffs. Yankees were off home tonight for the Angels. Yanks tied for first with Baltimore Red Sox eighteen hits, one, nine to five at Kansas City. The Giants got to five hundred with a four to one win in Washington. Then there are the White Sox, a
model of consistency. They just keep losing five to one in Oakland, the thirty second time this season. Chicago has failed to score even two onns in a game. Losing streak is at twenty one, going back to July tenth. It's tied to the longest skid in modern American League history. The Major League record is twenty three. Two gold medals for the US gives them twenty one, tied with China,
US way ahead and overall medals won. Valerie Allman won the women's discus, just as she did three years ago, and Caroline Marks one gold in the surfing that's taking place in Tahiti. In Paris today, h's the US and Brazil men's basketball quarterfinals. US takes on Germany in the women's soccer. That means the men's soccer gold medal game
will be Friday, Spain against France. Post Nation won at semifinal game with Egypt and extra time, so were world champion Chiefs have woped up in all pro kicker Harrison Bucker will make six and a half million a year. Bucker this past spring made news with a controversial commencement speech johns Dashawa Bloomberg Sports carry.
Maybe coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world. On Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. It's a better morning.
Some calm may be settling back into the market after yesterday's plunge for stocks around the world. A whole host of factors came together to send investors fleeing to safety. This morning, we are seeing a bit of recovery. But is this a calm before another storm joining us now? Janet Mooey, head of Market analysis at RBC, brewin Dolphin, Janet, good morning is the worst over?
Hi?
I'm Money and Nathan, thanks for having me well. It is hard to say, to be honest, I think the market narrative has shifted from focus on inflation to concern on growth. So unless we have the clarity on the growth side of things, I don't think we can be sure or you know, when is this end or volatility? Physically, we still have geopolitical atention and of course the US
election where the race is pretty tight at the moment. Though, I having said that, we do feel that valuations have become more attractive, so certainly paving the way for a better entry point for investors.
More attractive valuations. Where specifically, where are you advising clients to buy in at this point?
Yeah, so currently we are not, you know, exactly advising clients to buy in at this particular point. But overall, our portfolio strategy has been overweighted in US and also with favor semiconductor stocks. Now those areas of the market has obviously seen a correction and particularly some of those semiconductor stocks have slummed. I think irrespective of fundamentals, it's
more sentiment and position drivening. So we feel that that could open up opportunities because we still view those sectors as you know, very good long term prospects.
Are you looking for the market to test further lows? What other catalysts should we be looking at in terms of where this volatility could go from here?
I think there is a real possibility. So our base case is still a stock blending even though that recession risk admittedly has risen. I think the key risk here is I think it's oil prices. We have seen actually all prices falling because of those recession risks, But don't
forget we still have geopolitical rests on the background. The tension between Israel and Iran is still high, so if our prices rise from here, that could be a pretty bad scenario for market is because that would mean staculation.
Does your soft landing thesis rely on the FED delivering more aggressive rate cuts than it's been telegraphing.
I think yes at this stage it does. So I think if the fat were to cut a couple of times this year and more next year, I think we are we have the pathway to avoid our recessions. So yes, it is conditioned on the fat cutting, and the fact is we're I think the thing is the fat does have the leeway to cut. I think that's pretty clear because first of all, the rates are at five and a half percent and inflation is heading in the right direction.
I think those are the very important assumption in inflation reaccelerates, which is not what we're expecting, by the way, I think that would be more difficult.
Backdrop, Does the FED need to cut before September? I know a number of FED officials have been pushing back at that idea, But is that something that the FED needs to consider?
I think it could be risky mode. Actually, I think so far, as you mentioned at the beginning, we're actually having a bit of a normality, and I think it's a bit it's a bit of a best signaling. If they were to cut in between meetings, it shows a bit of desperation in my view, and I think, you know, we have just we just need to wait one month's time. I think nothing major is likely to happen in between.
We I like to get some more economic data that could induce the polity, but I think it's worked out to wait until September eighteen.
This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
Look for us on your podcast feed at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts.
You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one six to one in Boston, and Bloomberg nine sixty in San Francisco.
Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Plus listen coast to coast on the Bloomberg Business app, SERIUSXM, the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow.
Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak