Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 3: We begin with the Group of twenty summit in India,
Speaker 3: which wrapped this week and leaders reached compromises on Russia's
Speaker 3: warn Ukraine and a new multilateral rail and sea root deal.
Speaker 3: Chinese Premier Lee Chiong stood in place of President Shi Jinping,
Speaker 3: but did meet with President Biden. A Chinese spokeswoman says
Speaker 3: Lee told the President China's development is an opportunity for
Speaker 3: the United States. Speaking in Vietnam on his way back
Speaker 3: from the summit, President Biden said he thinks the US
Speaker 3: and the world are better off if China does well,
Speaker 3: but he did raise doubts on the chances China invades
Speaker 3: Taiwan given China's economic woes.
Speaker 4: China has a difficult economic problem right now for whole
Speaker 4: range of reasons that relate to the international growth and
Speaker 4: black thereof and the policies that China has followed, and
Speaker 4: so I don't think this is going to cause China
Speaker 4: to invade Taiwan. As a matter of fact, the oppos
Speaker 4: are probably going to have the same capacity that it
Speaker 4: had before.
Speaker 3: And President Biden hasn't met with China's president since November
Speaker 3: of last year. US China relations have stalled amid a
Speaker 3: number of incidents, including export bands and the alleged Chinese
Speaker 3: spy balloon incident.
Speaker 2: And Today Nathan, on his way back from the G twenty,
Speaker 2: President Biden will mark the twenty second anniversary of the
Speaker 2: September eleventh terrorist attacks in Alaska. He'll visit one thousand
Speaker 2: vers responders and their families at a military base and Anchorage.
Speaker 2: Vice President Kamala Harris will visit the National September eleventh
Speaker 2: Memorial and Museum in Lower Manhattan to honor lives lost
Speaker 2: in the terror attack, and she'll be joined by US
Speaker 2: Secretary of Homeland Security Alejandro Majorcis. First Lady Jill Biden
Speaker 2: visits the National nine to eleven Pentingon Memorial in Arlington, Virginia.
Speaker 3: Turning from politics to the economy now Karen Treasury Secretary
Speaker 3: Janet Yellen joined President Biden at the G twenty. She's
Speaker 3: expressing confidence the US will stick a soft landing. On
Speaker 3: her way back from India, Yellen told reporters she confident
Speaker 3: the US can contain inflation without damaging the job market.
Speaker 3: She says she's feeling very good the US will avoid
Speaker 3: a recession, but no one's declaring victory just yet. Bloomberg
Speaker 3: opinion columnist Muhammad Larian says the Federal Reserve faces more
Speaker 3: complications ahead of its next policy decision next week.
Speaker 5: CPI next week and definitely change it not September, but
Speaker 5: can change the next rate hike at the end of
Speaker 5: October beginning of November. This is a very complicated time
Speaker 5: for the Fed, and Marcus should not jump to conclusion
Speaker 5: too easy as to what's going to happen beyond September.
Speaker 3: Bloomberg Opinion columnist Muhammadlarian says we'll learn more on Wednesday
Speaker 3: when we get the August Consumer Price Index.
Speaker 2: Meanwhile, Nathan, a growing threat to the economy is emerging
Speaker 2: in Detroit. New analysis says that even a brief United Autoworkers'
Speaker 2: strike will cause billions in economic damage, and Bloomberg's add
Speaker 2: Baxter reports that the strike could begin as soon as Thursday.
Speaker 6: This is coming just when US automakers on the broader
Speaker 6: are starting to recover from the effects of the pandemic
Speaker 6: and then semiconductor shortages, and along with a thread of
Speaker 6: even a brief strike, Anderson Economic Group, a consultancy in Lansing,
Speaker 6: says if it went on longer, it could really dent
Speaker 6: the economy. It says even a ten day strike would
Speaker 6: reduce the US GDP by five point six billion dollars
Speaker 6: and likely would push the Michigan economy into recession. It
Speaker 6: also says it could make some models scarce and push
Speaker 6: prices up just as they had started coming down. I'm
Speaker 6: Ed Baxter, Bloomberg Radio.
Speaker 4: Thanks Ed.
Speaker 3: Meantime, traders will be watching for earnings growth whether this
Speaker 3: year's rally can be sustained through this month. Bloomberg's Charlie Pellett.
Speaker 7: Reports September has historically been a rocky month for US equities,
Speaker 7: and now traders and investors are questioning the outlook for
Speaker 7: earnings growth given rising bond yields. Jake Jolly is head
Speaker 7: of Investment Analysis, Bank of New York Mellon.
Speaker 8: I would describe earnings results so far this year is
Speaker 8: basically being better than feared.
Speaker 9: Right.
Speaker 8: We marked down expectations quite a bit from kind of
Speaker 8: mid last year, and so far this year earnings have
Speaker 8: again been better than feared, so it hasn't derailed the rally.
Speaker 7: Among the companies reporting earnings this week. Adobe on Thursday
Speaker 7: in New York, Charlie Pellot Bloomberg Radio.
Speaker 2: All right, Charlie, thanks, So we also have a couple
Speaker 2: of key IPOs we're following this week. Online grocery store
Speaker 2: delivery company Instacart is planning to start its investors show
Speaker 2: as early as today and is weighing pricing its listing
Speaker 2: next week. The Wall Street Journal says Instacart's targeting evaluation
Speaker 2: of as much as nine point three billion dollars, and.
Speaker 3: ARM Holdings is considering raising its IPO price range for
Speaker 3: what looks like the largest listing in the world. This year,
Speaker 3: ARM filed for its IPO at forty seven to fifty
Speaker 3: one dollars a share, that would have valued the company
Speaker 3: at fifty four and a half billion at the high
Speaker 3: end of the range.
Speaker 2: Well elsewhere in company news this morning, Nathan Sources say
Speaker 2: UBS is set to cut hundreds of wealth jobs in
Speaker 2: Asia as activity slows in the region. The move comes
Speaker 2: months after UBS completed its takeover of rival Credits Swiss,
Speaker 2: and the majority of roles being cut come are within
Speaker 2: teams acquired from the Swiss Lander.
Speaker 3: In Queens this weekend, Karen nineteen year old Coco Goff
Speaker 3: became the first American teenager to win the US Open
Speaker 3: since Serena Williams in two thousand and one.
Speaker 2: I've been coming to this tournament.
Speaker 9: My dad took me to this tournament, sitting right there
Speaker 9: watching Venus as Serena compete.
Speaker 10: So it's really incredible.
Speaker 6: To be on this stage.
Speaker 3: Coco Goff was interviewed after the game on the court.
Speaker 3: That sound courtesy of ESPN marks the first major of
Speaker 3: Goff's career. On the men's side, Novak Djokovic claimed his
Speaker 3: twenty fourth major championship, matching Margaret Court for the most
Speaker 3: Grand Slam singles titles in tennis history. Look at some
Speaker 3: of the other stories making news around the world. We
Speaker 3: are joined by Bloomberg's John Tuckery. Good morning, John and Nathan.
Speaker 11: It's a race against time in Morocco to find survivors
Speaker 11: under the rubble after Friday's devastating six point eight magnitude earthquake.
Speaker 11: If we'll say more than twenty one hundred people have
Speaker 11: been killed, over twenty four hundred injured. American tourist Mohammad
Speaker 11: Attadi was visiting Marra Cash.
Speaker 8: There is a lot of damage that happened to a
Speaker 8: lot of buildings. Some of them are mosques, some of
Speaker 8: them are houses.
Speaker 2: A lot of communities got heard well.
Speaker 11: President Beiines sending his condolences and offers of help. Twinking
Speaker 11: on our hostess brands closing in a sale to j M. Smucker.
Speaker 11: It's a move that would marry the two big names
Speaker 11: and snacks. The Wall Street Journal reports a deal likely
Speaker 11: worth something in the neighborhood of four billion dollars, could
Speaker 11: be announced as early as today. After avoiding recession for
Speaker 11: longer than many thought possible, the US consumer may finally
Speaker 11: be about to crack. More of this report from Bloomberg's
Speaker 11: Jeff Bellinger.
Speaker 9: More than half of the five hundred and twenty six
Speaker 9: respondents to Bloomberg's latest Markets Live Pulse survey said that
Speaker 9: personal consumption, the most important driver of economic growth, will
Speaker 9: shrink early next year. That would mark the first quarterly
Speaker 9: decline since the one of the pandemic. Another twenty one
Speaker 9: percent said the reversal will happen even sooner in the
Speaker 9: last quarter of this year, as high borrowing costs eat
Speaker 9: into household budgets while COVID era savings run down. Jeff
Speaker 9: Bellinger Bloomberg Radio.
Speaker 11: Hurricane Lee, barreling through the open waters northeast of the
Speaker 11: Carabbean I have expected to cause rip currents a rough
Speaker 11: surf along the entire US Eastern seaboard this week. As
Speaker 11: it makes its way towards Nova Scotian. Along the whole
Speaker 11: east coast, we may see danger swript currents starting today.
Speaker 11: Authorities in Pennsylvania have released new images of escaped inmate
Speaker 11: Danello Cavalcanti as the man Hut continues with the convicted killer.
Speaker 11: The fugitive, now clean shaven and wearing a hoodie, enter
Speaker 11: slipping through a perimeter that was manned by up to
Speaker 11: four hundred officers. The thirty four year old was convicted
Speaker 11: of killing his ex girlfriend in front of her two children,
Speaker 11: and New Mexico gun owners op in arms over Governor
Speaker 11: Michelle Grisham's recent actions. On Friday, the state's democratic governor
Speaker 11: declared gun violence a public health emergency has suspended to
Speaker 11: open and concealed carry laws in cities and counties based
Speaker 11: on crime stats now. The National Association for Gun Rights
Speaker 11: and the Gun to Owners of America have both filed lawsuits.
Speaker 11: Global News twenty four hours a day, Power by more
Speaker 11: than twenty seven hundred journalists and analysts in more than
Speaker 11: one hundred and twenty countries. I'm John Tucker. This he
Speaker 11: is Bloomberg, Nathan.
Speaker 12: Thank you John.
Speaker 3: Time now for the Bloomberg Sports Update. With that, here's
Speaker 3: John Stenshawer.
Speaker 13: Thanks Nathan.
Speaker 14: The Giants have had plenty of lopsided losses of the
Speaker 14: Cowboys over the years, but none this bad. Now when
Speaker 14: getting shut out, Giants coach Brian Dabole not soon going
Speaker 14: to forget last night's season opening final score.
Speaker 8: We just got.
Speaker 10: We got skonked here, forty to nothing. So there's you know,
Speaker 10: when you play a game like that and coach a
Speaker 10: game like that, there's nothing that's good enough. And then
Speaker 10: you know look at it with a critical odge, just
Speaker 10: like we would do in any game. But you know,
Speaker 10: forty to nothing is not a good score. Obviously, a
Speaker 10: lot to work on, and that's.
Speaker 7: What we'll do.
Speaker 14: Dallas had special teams and defensive touchdowns in the first quarter.
Speaker 14: The halftime score of twenty six to zing the second
Speaker 14: most lopsided in NFL history for a Week one game.
Speaker 14: With the home team trailing and getting shut out, Giants
Speaker 14: have a lot to work on, especially protecting the quarterback.
Speaker 14: Andrew Jones has got sacked seven times and no one
Speaker 14: in Week one, more impressive than the Cowboys. The forty
Speaker 14: nine ers were closed. They won thirty to seven in Pittsburgh.
Speaker 14: Eagles a quick start in New England, up sixteen nothing
Speaker 14: first quarter, Philly held on beat the Patriots twenty five
Speaker 14: to twenty. Mac Jones through fifty four passes in defeat.
Speaker 14: That's with Tom Brady in attendance. That's how Brady spent
Speaker 14: his first NFL Sunday of retirement. The Commanders first games,
Speaker 14: it's the ownership change. They beat Arizona twenty to sixteen.
Speaker 14: The Ravens beat Houston twenty five to nine. Week one
Speaker 14: ends tonight, another prime time game at MetLife. It's the
Speaker 14: Jets in Buffalo and the highly anticipated Jets debut.
Speaker 3: Of Aaron Rodgers.
Speaker 14: Bizarre win for the Yankees. They were two outs from
Speaker 14: being the first team to ever get no hit in
Speaker 14: an eleven inning game, and they end up beating Milwaukee
Speaker 14: four to three and thirteen. That's with two of a
Speaker 14: night one two nothing in Minnesota. Red Sox avoid getting swept.
Speaker 14: They beat Baltimore seven to three. Giants last night beat
Speaker 14: the Rockies sixty three. John Stashawen Bloomberg.
Speaker 12: Sports from coast to coast, from New York to San Francisco,
Speaker 12: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg
Speaker 12: Business app, and Bloomberg dot Com.
Speaker 3: This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. We
Speaker 3: are watching stocks climb in Europe. Futures are pointing to
Speaker 3: a higher open on Wall Street this morning as well.
Speaker 3: There is optimism in this market that China's economy may
Speaker 3: be stabilizing and that the US will be able to
Speaker 3: pull off a soft landing for the American economy. Let's
Speaker 3: bring in Dennis Gartman to kickoff this trading week for UST.
Speaker 3: Dennis Coursus, chairman of the University of Akron and Doowmined
Speaker 3: Investment Committee, and the former publisher of the Gartman Letter. Dennis,
Speaker 3: it's great to speak with you. As always, it has
Speaker 3: been very interesting to see this continued strong US data
Speaker 3: ahead of the Federal Reserve's next decision. Do you share
Speaker 3: some of this optimism at least that we're seeing this morning.
Speaker 13: I haven't shared optimism for quite some period of time,
Speaker 13: and as the great American poet William Carlos Williams once said,
Speaker 13: so much depends upon a red wheelbarrow, So much depends
Speaker 13: upon the coming CPI and PPI numbers on Wednesday and
Speaker 13: Thursday this week. I have my doubts as to whether
Speaker 13: the Set is going to tighten monetary policy again this month.
Speaker 13: Probably more likely, though they'll take some action in November.
Speaker 13: But I think this is going to be a fairly
Speaker 13: quiet week. It's been a month and a half since
Speaker 13: they've seen highs in the DOW and the SMP and
Speaker 13: the NASDAC, and you're actually seeing some trend lines being broken.
Speaker 13: So I'm not optimistic, other as the vast majority of
Speaker 13: people seem to be. I'm rather a tad more pessimistic,
Speaker 13: not demonstrably, so, just a tad more.
Speaker 3: How does that pessimism play out into the portfolio that
Speaker 3: you're managing at the University of Akron.
Speaker 13: We're all you universities have to be long an abundant
Speaker 13: amount of stocks. I mean, it's just the nature of
Speaker 13: the beast. We are less long than most universities are.
Speaker 13: I took about ten percent. Well, actually it was a
Speaker 13: committee decision two and a half years ago. We took
Speaker 13: ten percent of the portfolio out to guarantee spending for
Speaker 13: the next two or three years. And we've actually moved
Speaker 13: a little bit of money out of China, We've moved
Speaker 13: a little bit of money into gold, and we're doing
Speaker 13: reasonably well. We're probably in the upper quartile, not leading
Speaker 13: the attack, but doing quite well to be and we're
Speaker 13: a tad more defensive than most other universities are.
Speaker 3: We heard from a Treasury Secretary, Janet Yellen. She's been
Speaker 3: saying for some time that she thinks that the US
Speaker 3: can pull off a soft landing. It sounds as though
Speaker 3: you don't think that's the case.
Speaker 13: I tend not to think that's the case. If I
Speaker 13: could only choose one leading one economic indicator to follow,
Speaker 13: it's the relationship between the conference sports leading economic indicators
Speaker 13: and their own coincidence and indicators when the leaders fall
Speaker 13: below the coincidence. Since nineteen seventy, every time it's happened,
Speaker 13: it's happened. I believe seventeen times we've had we've been
Speaker 13: in recessionary circumstances. So it's an indication that things seem
Speaker 13: to be slowing down. I would like to think that
Speaker 13: we could have a soft landing. Certainly that's better for
Speaker 13: everybody involved, but I have my doubts as to whether
Speaker 13: that can occurs. And Miss Yellen has been not the
Speaker 13: greatest economists of all time, and she's made some terrible,
Speaker 13: terrible decisions over the past many years. I think she's
Speaker 13: probably a little too optimistic. I'm a little more pessimistic,
Speaker 13: but the operative wars here are a little more so.
Speaker 3: Do you think that we could see some economic damage
Speaker 3: then from the rate hiking cycle that we've already seen
Speaker 3: from this Federal Reserve? Because, as I mentioned, the economic
Speaker 3: data tend to say otherwise, at least at this point.
Speaker 13: Yes, with long and and with long lags, rising interest
Speaker 13: rates are always deliterious economic circumstances. I think the Feed
Speaker 13: is probably done with raising of rates. As I said earlier,
Speaker 13: we won't get an increase in the September meeting. We'll
Speaker 13: probably get if we get any further increase in the
Speaker 13: overnight set funds rate, it'll happen in November, but it'll
Speaker 13: be a long time before the Fed begins the process
Speaker 13: of the easing monetary policy, at least into late twenty
Speaker 13: twenty four, maybe into early twenty twenty five. The feat
Speaker 13: has made it abundantly clear and tend to fight inflation,
Speaker 13: and they'll be very slow in allowing rates to come down.
Speaker 13: So I think we're going to see a long period
Speaker 13: of time before rates begin there, before policy shifts in
Speaker 13: another direction. It'll be a long time.
Speaker 3: So do you think that that means that we're going
Speaker 3: to see a stock market breakout of its range to
Speaker 3: the downside, And if so, by how much We've got
Speaker 3: about a minute left?
Speaker 13: Yes, I think we're in the process of breaking some
Speaker 13: important trend lines in the NASDAK, some important trend lines
Speaker 13: in the down, some important trend lines in the S
Speaker 13: and P. We've broken an important trend line in the russell.
Speaker 13: And what bothers me greatly is that volume seems to
Speaker 13: be coming in on the exchanges on down days and
Speaker 13: coming in and leading on updays, and that's not an
Speaker 13: internally strong sign. So yes, I think we're going to
Speaker 13: be a little bit lower, maybe five to ten percent
Speaker 13: below where we are right now, before I turn bullish
Speaker 13: again on share prices. That'll be sometime in the future.
Speaker 1: This is Bloomberg Day Break today, your morning brief on
Speaker 1: the stories making news from Wall Street to Washington and
Speaker 1: beyond look for us.
Speaker 2: On your podcast feed at six am Eastern each morning,
Speaker 2: on Apple, Spotify, and anywhere else you get your podcasts.
Speaker 1: You can also listen live each morning starting at five
Speaker 1: am Wall Street Time, on Bloomberg eleven three to zero
Speaker 1: in New York, Bloomberg ninety nine to one in Washington,
Speaker 1: Bloomberg one six to one in Boston, and Bloomberg ninety
Speaker 1: sixty in San Francisco.
Speaker 2: Our flagship New York station is also available on your
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
Speaker 1: Plus listen coast to coast on the Bloomberg Business app,
Speaker 1: serious XM Channel one nineteen, the iHeartRadio app, and on
Speaker 1: Bloomberg dot com. I'm Nathan Hager and I'm Karen Moscow.
Speaker 2: Join us again tomorrow morning for all the news you
Speaker 2: need to start your day right here on Bloomberg Daybreak