Investors Brace for Triple-Witching; Trump Beats Biden in Fundraising

Bloomberg Audio Studios, podcasts, radio news. 0:00:11.000 --> 0:00:11.559 Good morning. 0:00:11.600 --> 0:00:14.400 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:14.440 --> 0:00:15.920 stories we're following today. 0:00:16.079 --> 0:00:18.279 Karen, it could be a volatle day on Wall Street. 0:00:18.280 --> 0:00:22.200 As we close out this holiday disrupted trading week, investors 0:00:22.280 --> 0:00:25.480 are bracing for the quarterly event known as triple witching, 0:00:25.560 --> 0:00:29.440 in which derivatives contracts tied to equities, index options and 0:00:29.680 --> 0:00:33.400 futures mature. About five and a half trillion dollars in 0:00:33.440 --> 0:00:36.640 options are set to expire. As for yesterday, the AI 0:00:36.840 --> 0:00:40.080 rally lost steam as the tech heavy NASDAC dropped eight 0:00:40.120 --> 0:00:43.440 tenths of one percent. New Edge twelfth Chief investment Officer 0:00:43.479 --> 0:00:46.400 Cameron Dawson says tech stocks are at a lofty level. 0:00:47.080 --> 0:00:49.560 I note with the tech sector though, we are now 0:00:49.640 --> 0:00:52.640 as overbought as we have been at any point in 0:00:52.680 --> 0:00:55.720 recent years. We're trading twenty seven percent above our two 0:00:55.840 --> 0:00:59.400 hundred day moving average. The only time we've seen the 0:00:59.440 --> 0:01:03.080 index trade much above that level was during the final 0:01:03.120 --> 0:01:06.800 blowoff top phases of the tech bubble in the late nineties. 0:01:07.120 --> 0:01:10.720 So something to watch because we are extraordinarily overbought. 0:01:10.959 --> 0:01:14.319 New Edges. Cameron Dawson says while tech stocks may be overbought, 0:01:14.360 --> 0:01:17.440 they are the one group that has strong earnings momentum. 0:01:18.120 --> 0:01:22.160 Well Nathan. Leading the losses yesterday was Ai Darling. Nvidia 0:01:22.440 --> 0:01:25.639 shares drop three and a half percent. They're down another 0:01:25.680 --> 0:01:26.679 two and a third percent. 0:01:26.720 --> 0:01:27.279 This morning. 0:01:27.640 --> 0:01:30.240 CEO Jensen Wong unloaded some of his stake in the 0:01:30.240 --> 0:01:33.400 world's second most valuable company. He sold almost thirty two 0:01:33.480 --> 0:01:36.880 million dollars of shares and one other note. Paul Wick 0:01:36.880 --> 0:01:40.280 of Seligman Investment says he's been trimming his holdings of 0:01:40.400 --> 0:01:44.720 Nvidia in recent weeks after questioning the company's earnings growth prospects. 0:01:44.840 --> 0:01:44.960 Well. 0:01:45.000 --> 0:01:47.680 Another stock on the move this morning, karen is Serrepta. 0:01:47.760 --> 0:01:51.440 Those shares are surging nearly thirty five percent. The drug 0:01:51.440 --> 0:01:56.320 company's controversial gene therapy has received expanded FDA approval. More 0:01:56.360 --> 0:01:57.800 from Bloomberg's Doug Krisner. 0:01:58.080 --> 0:02:02.560 The treatment is a Levitus's in cases of Duschen muscular dystrophe. 0:02:02.760 --> 0:02:05.720 Last year, the FDA initially cleared it for use in 0:02:05.800 --> 0:02:09.359 four and five year olds only. Now, the expanded approval 0:02:09.400 --> 0:02:12.520 means patients four years and above can receive the therapy. 0:02:13.000 --> 0:02:16.959 Initial approval of Elevetus came through an accelerated pathway. It's 0:02:17.000 --> 0:02:20.440 a shortcut, but it's often based on preliminary data, so 0:02:20.639 --> 0:02:24.400 a confirmation trial is required. If it doesn't show a benefit, 0:02:24.600 --> 0:02:27.360 the FDA can pull the treatment from the market. In 0:02:27.400 --> 0:02:29.200 New York, I'm Doug Prisner, Bloomberg Radio. 0:02:29.520 --> 0:02:32.359 All right, Doug, thank you well. Turning to the economy. Now, 0:02:32.440 --> 0:02:35.000 add this to bets on the Fed's rate cut plans. 0:02:35.080 --> 0:02:38.800 Minneapolis Fed President neilcash Curry says, inflation is on the 0:02:38.840 --> 0:02:42.040 way back down to two percent, but getting there we'll 0:02:42.040 --> 0:02:42.639 take a while. 0:02:43.160 --> 0:02:45.800 It'll probably take a year or two to get all 0:02:45.800 --> 0:02:48.360 the way back down to our two percent target. The 0:02:48.400 --> 0:02:50.359 good news in all of this is that the labor 0:02:50.400 --> 0:02:52.120 market has remained remarkably strong. 0:02:52.520 --> 0:02:56.200 Manlee, Minneapolis Fed chief neilkash Curry says wage growth is 0:02:56.240 --> 0:02:58.880 still good for workers, but maybe too good to bring 0:02:58.880 --> 0:03:01.560 inflation down to that target. He spoke at the Michigan 0:03:01.639 --> 0:03:03.799 Bankers Association Annual Conference. 0:03:03.919 --> 0:03:06.359 Well, Karen Letstern. Now to the race for the White House, 0:03:06.480 --> 0:03:10.079 specifically the fundraising race. The latest figures are in and 0:03:10.120 --> 0:03:13.160 the gap may be narrowing in the Biden Trump rematch. 0:03:13.240 --> 0:03:15.840 Bloomberg Steve Potis cast the story from Washington. 0:03:16.280 --> 0:03:19.120 For the second month in a row, Former President Trump 0:03:19.160 --> 0:03:22.680 and the Republican National Committee out raised President Biden and 0:03:22.720 --> 0:03:26.160 the Democrats. The former president took in one hundred forty 0:03:26.160 --> 0:03:29.720 one million dollars in May, compared to Biden's eighty five million. 0:03:29.960 --> 0:03:33.639 Trump's fundraising has taken off since his conviction on thirty 0:03:33.639 --> 0:03:34.720 four felony counts. 0:03:34.720 --> 0:03:35.320 In New York. 0:03:35.680 --> 0:03:38.960 Investor Timothy Mellon gave fifty million dollars to his Make 0:03:39.000 --> 0:03:41.880 America Great Again pack the day he was found guilty. 0:03:42.160 --> 0:03:44.880 President Biden still has a record amount of cash on 0:03:45.000 --> 0:03:47.240 hand for a Democrat at this point in the cycle. 0:03:47.400 --> 0:03:50.240 He entered May with two hundred twelve million dollars in 0:03:50.240 --> 0:03:53.680 the bank. Trump and the RNC report one hundred seventy 0:03:53.720 --> 0:03:57.480 one million dollars in their war chest in Washington. Steve 0:03:57.560 --> 0:03:59.520 Potis Bloomberg Radio Right. 0:03:59.560 --> 0:04:02.000 Steve, Thanks, We'll staying in Washington. We are waiting to 0:04:02.000 --> 0:04:04.440 hear from the Supreme Court later this morning as the 0:04:04.680 --> 0:04:08.400 Justice is prepared to hand down more major decisions. Bloomberg's 0:04:08.400 --> 0:04:09.840 Amy Morris has a preview. 0:04:10.120 --> 0:04:14.320 The Justice is handed down four decisions yesterday, leaving nineteen 0:04:14.440 --> 0:04:17.320 more rulings to issue before the court is expected to 0:04:17.360 --> 0:04:19.960 recess at the end of the month. Now, among them 0:04:20.040 --> 0:04:22.680 a ruling on former President Trump's claim that he is 0:04:22.680 --> 0:04:26.480 immune from prosecution for alleged crimes committed while in office, 0:04:26.560 --> 0:04:29.280 and the court is expected to rule on weather States 0:04:29.279 --> 0:04:32.760 that prohibit social media companies from removing posts based on 0:04:32.800 --> 0:04:36.160 a political view violate free speech. But there is a 0:04:36.160 --> 0:04:38.479 lot to do before the court is in recess, so 0:04:38.600 --> 0:04:41.680 after today, the Court has now added this coming Wednesday 0:04:41.800 --> 0:04:46.240 to hand down more decisions. In Washington, Amy Morris Bloomberg Radio. 0:04:46.200 --> 0:04:48.920 Okay, Amy, thank you Bye. Dan says TikTok has gone 0:04:48.920 --> 0:04:52.520 to courts challenge the US Force divestiture legislation. More on 0:04:52.560 --> 0:04:53.880 that from Bloomberg's at Maxter. 0:04:54.960 --> 0:04:57.479 In the filing, the company says it has a negotiated 0:04:57.560 --> 0:05:01.599 ninety page national security agreement with the US government to 0:05:01.680 --> 0:05:06.760 offer multi layered safeguards and enforcement mechanisms, but says Congress 0:05:07.120 --> 0:05:11.040 disregarded the agreement and the groundwork when considering the ban. 0:05:11.600 --> 0:05:14.120 The Justice Department then issued a statement saying that the 0:05:14.200 --> 0:05:19.240 legislation addresses critical national security concerns in a matter that 0:05:19.360 --> 0:05:23.520 is consistent with a First Amendment and other constitutional limitations 0:05:23.920 --> 0:05:27.239 and says that it will defend the legislation in court. 0:05:27.720 --> 0:05:29.359 At Baxter, Bloomberg. 0:05:29.000 --> 0:05:32.120 Radio granted thanks well. In Banking News, City Group CEO 0:05:32.200 --> 0:05:35.919 Jane Fraser's plans to improve risk controls may have suffered 0:05:35.960 --> 0:05:39.320 a setback. Bloomberg has learned the bank's blueprint for a 0:05:39.400 --> 0:05:42.360 hypothetical wind down known as a living will, has come 0:05:42.440 --> 0:05:45.320 up short for a majority of board members on the FDIC. 0:05:45.880 --> 0:05:48.200 The FED A reserve would have to make a similar 0:05:48.240 --> 0:05:50.880 finding for City to face a penalty. The bank has 0:05:50.880 --> 0:05:53.560 been trying to improve its wind down plans for years. 0:05:53.720 --> 0:05:56.160 The FED in the FDIC found issues with the plans 0:05:56.160 --> 0:05:57.280 in late twenty twenty two. 0:05:57.680 --> 0:06:00.640 In Staying in Banking care in Japan's Nornschook Bank is 0:06:00.680 --> 0:06:04.520 not rolling out further gyrations to its soured bond investments 0:06:04.560 --> 0:06:07.400 after the firm warned earlier this week that its losses 0:06:07.400 --> 0:06:10.520 could swell to nine and a half billion dollars. Japan's 0:06:10.520 --> 0:06:13.560 biggest agricultural bank surprise the market by saying it would 0:06:13.560 --> 0:06:16.600 sell sixty three billion in low yielding bonds that had 0:06:16.640 --> 0:06:20.720 become unprofitable after the firm's shorter term funding costs jumped 0:06:21.040 --> 0:06:24.800 at Norn Chuckin's annual meeting, shareholders approved all the bank's resolutions, 0:06:24.800 --> 0:06:26.680 including the reappointment of management. 0:06:29.920 --> 0:06:31.200 And it's time now for a look at some of 0:06:31.240 --> 0:06:33.320 the other stories making news in New York and around 0:06:33.320 --> 0:06:36.400 the world. For that, we're joined by Bloomberg's Michael Barr. Michael, 0:06:36.400 --> 0:06:37.919 Good morning, Good morning, Karen. 0:06:38.000 --> 0:06:41.240 The heat will remain in the Northeast and Midwest today. 0:06:41.760 --> 0:06:44.239 In New York City, a heat advisory is an effect 0:06:44.240 --> 0:06:49.160 from twelve pm this afternoon until eight pm Saturday. Temperatures 0:06:49.200 --> 0:06:51.760 will hit around ninety five degrees again, as the heat 0:06:51.800 --> 0:06:56.520 played a factor in causing train delays yesterday, New Jersey 0:06:56.560 --> 0:06:59.640 Transit and Amtrak service has resumed in and out of 0:06:59.720 --> 0:07:04.120 Pens after a circuit breaker malfunctioned. Earlier this week, low 0:07:04.200 --> 0:07:08.040 wires caused train delays. This man told ABC seven he 0:07:08.120 --> 0:07:10.200 has been late to his job because of it. 0:07:10.520 --> 0:07:12.880 I had to get a letter to present to my 0:07:12.960 --> 0:07:13.560 job for me. 0:07:13.560 --> 0:07:16.400 Not to get fired, because every we got keep getting late, late, 0:07:16.480 --> 0:07:16.880 late late. 0:07:17.240 --> 0:07:19.920 If I didn't bring this letter today, I'm gonna get fired. 0:07:20.480 --> 0:07:23.960 In New Hampshire, outdoor workers battle the ninety degree heat. 0:07:24.280 --> 0:07:28.560 The Occupational Safety and Health Administration conducts checks when they 0:07:28.600 --> 0:07:32.880 have heat advisories. Joseph LaRose is New Hampshire's OSHA Director. 0:07:33.280 --> 0:07:39.320 OSHA conducts heat inspections in certain industries like construction. 0:07:40.040 --> 0:07:44.680 We're housing in Philadelphia. A heat emergency has been declared 0:07:44.880 --> 0:07:49.520 through Saturday, and cooling centers are opened. The Pentagon acknowledges 0:07:49.640 --> 0:07:53.360 Ukraine can expand their strikes into Russia using US weapons. 0:07:53.680 --> 0:07:57.680 It's a significant change in the Biden administration's limited permission 0:07:58.040 --> 0:08:02.320 to strike into Russia near Kark. Earlier this week, National 0:08:02.360 --> 0:08:06.240 Security Advisor Jake Sullivan indicated that the US agreed to 0:08:06.320 --> 0:08:11.280 allow Ukraine to fire into Russia wherever Russian forces were 0:08:11.320 --> 0:08:16.080 attempting to invade Ukraine. Pentagon Press Secretary General Pat Ryder 0:08:16.320 --> 0:08:19.480 repeated Sullivan's language during Thursday's Pentagon briefing. 0:08:19.840 --> 0:08:24.880 The National Security Advisor put it in great words here 0:08:24.920 --> 0:08:27.240 in the sense that it's not about geography, it's about 0:08:27.320 --> 0:08:29.520 common sense, right, being able to fire back if you're 0:08:29.560 --> 0:08:30.080 fired upon. 0:08:30.560 --> 0:08:36.000 Meanwhile, Ukraine is experiencing rolling blackouts as Russia intensified strikes 0:08:36.040 --> 0:08:39.880 targeting energy infrastructure over the past three months. New York 0:08:39.920 --> 0:08:43.640 City is releasing a new five billion dollar plan to 0:08:43.720 --> 0:08:47.480 fix a deteriorating stretch of the Brooklyn Queens Expressway, which 0:08:47.480 --> 0:08:50.120 carries about one hundred and thirty thousand cars and trucks 0:08:50.160 --> 0:08:53.360 per day. It is in such poor shape that censors 0:08:53.480 --> 0:08:56.760 way trucks crossing the deck in real time to prevent 0:08:56.880 --> 0:09:01.520 heavy vehicles from collapsing the highway. The city's plan would 0:09:01.559 --> 0:09:04.360 replace a less than a half mile portion of the 0:09:04.360 --> 0:09:07.600 seventy five year old BQE that hugs the east rivers 0:09:07.640 --> 0:09:11.439 south of the Brooklyn Bridge, known as the Triple Cantilever. 0:09:11.840 --> 0:09:14.760 It stacks two decks on top of each other, both 0:09:14.800 --> 0:09:19.280 suspended above street level, and it's crowned by a pedestrian promenade. 0:09:19.600 --> 0:09:22.040 Global news twenty four hours a day and whenever you 0:09:22.040 --> 0:09:24.800 wanted with the Bloomberg News Now. I'm Michael Barr, and 0:09:24.880 --> 0:09:26.400 this is Bloomberg. 0:09:25.880 --> 0:09:27.320 Karen Ray, Michael bar Thanks. 0:09:27.360 --> 0:09:29.120 So we do bring a news throughout the day right 0:09:29.160 --> 0:09:31.199 here on Bloomberg Radio. But now you can get the 0:09:31.240 --> 0:09:34.480 latest news on demand whenever you want it. Just subscribe 0:09:34.520 --> 0:09:36.920 to Bloomberg News Now to get the latest headlines right 0:09:36.920 --> 0:09:39.800 at the click of a button. Get informed on your schedule. 0:09:39.840 --> 0:09:42.360 You can listen and subscribe to Bloomberg News now on 0:09:42.400 --> 0:09:46.160 the Bloomberg Business app, Bloomberg dot com, plus Apple, Spotify, 0:09:46.440 --> 0:09:53.679 and anywhere else you get your podcasts. Time now for 0:09:53.720 --> 0:09:56.960 the Bloomberg Sports Update with John stash Hour. John, Good Morning, 0:09:57.000 --> 0:09:57.760 Good Morning, Karen. 0:09:57.840 --> 0:10:01.040 Summer begins with the Yankees Major League fifty one and 0:10:01.120 --> 0:10:04.320 twenty six, but the Orioles are forty nine and twenty five, 0:10:04.400 --> 0:10:06.840 only half game behind, but actually won fewer loss at 0:10:06.880 --> 0:10:10.600 the Stadium in Baltimore, won seventeen to five. Orioles at 0:10:10.760 --> 0:10:13.240 nineteen hit scored in every geting but one scored six 0:10:13.320 --> 0:10:16.040 in the second when they knocked out Luis Heel. Every 0:10:16.120 --> 0:10:18.440 Yankee start of the season had gone at least four innings. 0:10:18.440 --> 0:10:21.280 Heel only got four outs, gave up seven runs. He 0:10:21.320 --> 0:10:24.199 had made six starts in May and had only allowed 0:10:24.200 --> 0:10:26.720 a total of three runs. His manager is Aaron Boom. 0:10:27.000 --> 0:10:28.680 I mean, obviously he's in the midst of a great 0:10:28.760 --> 0:10:33.440 year and this doesn't change that. You know, this is 0:10:33.679 --> 0:10:36.240 this is one bump in the road, and frankly, you 0:10:36.280 --> 0:10:39.920 know it's always an opportunity to grow and learn from 0:10:40.080 --> 0:10:42.000 which he's done a great job all year. You know, 0:10:42.080 --> 0:10:44.679 he hasn't had you know, the level you know because 0:10:44.679 --> 0:10:47.920 he's been so dominant, there's still been things in the 0:10:47.960 --> 0:10:50.440 course of outing that he's really learned and grown from. 0:10:50.600 --> 0:10:53.200 Yanks tonight hosted Atlanta Mets visit the Cubs. What a 0:10:53.240 --> 0:10:55.520 scene last night at one hundred and fourteen year old 0:10:55.600 --> 0:10:58.959 Rick Woodfield in Birmingham MLB honoring the Negro Leagues. Ninety 0:10:59.040 --> 0:11:02.200 nine year old Bill Reeson, who Black Bearns, was a 0:11:02.280 --> 0:11:04.560 teammate of the late William Mays, then became a minister 0:11:04.640 --> 0:11:07.720 in Birmingham. He threw out the first pitch. Mays's son 0:11:07.840 --> 0:11:10.880 was there, so was his godson, Barry Bonds. Cardinals won 0:11:10.880 --> 0:11:12.560 the game, beat the Giant six to five, and what 0:11:12.720 --> 0:11:15.679 was not a well kept secret, the Lakers hiring Jj 0:11:15.800 --> 0:11:19.040 Reddick as their new coach. Played fifteen years, became a broadcaster. 0:11:19.120 --> 0:11:21.520 He's never coached, but he does do a podcast with 0:11:21.720 --> 0:11:24.640 Lebron James. He's the seventh different Laker coach in the 0:11:24.760 --> 0:11:28.200 last thirteen years. The Stanley Cup getting some frequent flyer miles. 0:11:28.200 --> 0:11:30.560 It was in Edmonton, made the long trip to South Florida. 0:11:30.600 --> 0:11:33.400 Now back in Edmonton, and if Connor McDavid and the 0:11:33.400 --> 0:11:36.120 Oilers beat the Panthers again tonight, the Cup and everyone 0:11:36.120 --> 0:11:38.040 else headed back to Florida for a Game seven on 0:11:38.160 --> 0:11:41.439 Monday opening round of the Travelers Golf just south of Hartford, 0:11:41.440 --> 0:11:44.280 and Tom Kim, who turns twenty two today, shot an 0:11:44.280 --> 0:11:46.920 eight under sixty two, leads by two. Scottie Scheffer, the 0:11:46.960 --> 0:11:49.719 world number one, who turns twenty eight today and who 0:11:49.760 --> 0:11:51.960 struggled last week at the US Open, is only three 0:11:51.960 --> 0:11:55.559 shots behind Johns Stasha went Bloomberg Sportscarry Naked. 0:11:57.440 --> 0:12:01.560 Coast to Coast on Bloomberg Radio Nation on Sirius XM, 0:12:01.679 --> 0:12:04.560 and around the world on Bloomberg dot Com and the 0:12:04.600 --> 0:12:08.040 Bloomberg Business app. This is Bloomberg Daybreak. 0:12:08.240 --> 0:12:11.600 Good morning, I'm Nathan hager Well this morning. Notwithstanding, it's 0:12:11.640 --> 0:12:14.120 not just the market that's been on a hot streak, 0:12:14.480 --> 0:12:17.360 so is the actual heat. The first day of summer 0:12:17.760 --> 0:12:20.760 had around one hundred million people across the country dealing 0:12:20.800 --> 0:12:23.480 with ninety plus degree temperature. So if it feels like 0:12:23.600 --> 0:12:26.160 July or August, now, what does the rest of the 0:12:26.200 --> 0:12:29.160 summer have in store for us? For some answers, let's 0:12:29.160 --> 0:12:32.800 bring in Bloomberg meteorologist Rob carrolln Well. First off, Rob, 0:12:32.840 --> 0:12:35.560 good morning, and where is the worst of this heat 0:12:35.559 --> 0:12:36.240 wave right now. 0:12:36.520 --> 0:12:38.200 Well, the worst of it, Nathan, is going to be 0:12:38.200 --> 0:12:41.240 the Ohio River Valley and into the northern mid Atlantic States, 0:12:41.280 --> 0:12:43.400 the New York City area and western New England. That's 0:12:43.440 --> 0:12:46.640 where we'll see temperatures again today above ninety factor in 0:12:46.640 --> 0:12:48.360 two points above seventy and it's going to feel like 0:12:48.400 --> 0:12:49.920 it's one hundred to one hundred and ten in that 0:12:50.000 --> 0:12:50.720 region today. 0:12:51.240 --> 0:12:54.760 So when can that region, when can the rest of 0:12:54.840 --> 0:12:57.360 us who have been, you know, really feeling the heat 0:12:57.400 --> 0:13:00.559 the last few days, start to find some relief September. 0:13:01.640 --> 0:13:04.040 It's going to take a while to break this, and no, 0:13:04.400 --> 0:13:07.800 I'm serious. The fact that it's starting early, it's going 0:13:07.880 --> 0:13:09.720 to have the tendency to hang around the while. We've 0:13:09.720 --> 0:13:12.840 got a big Bermuda High stretching from Tennessee out into 0:13:12.840 --> 0:13:15.640 the Atlantic. You know, we've heard the term now heat dome. 0:13:15.679 --> 0:13:18.760 It's just a typical Bermuda high that's developed early in 0:13:18.800 --> 0:13:21.280 response the fact that the western Atlantic is very, very 0:13:21.320 --> 0:13:24.880 warm now folks in the Great Lake States today, across 0:13:25.000 --> 0:13:27.560 northern New York and New England, we'll see a break 0:13:27.559 --> 0:13:29.800 in the heat. There's a coal front dropping southward at 0:13:29.920 --> 0:13:32.160 Quebec that will break the heat there, but it's expected 0:13:32.200 --> 0:13:34.640 to stall just south of the New York City area, 0:13:34.679 --> 0:13:38.240 out towards Columbus, Ohio, and then Springfield, Illinois. North of it. 0:13:38.280 --> 0:13:41.160 We'll see lots of showers and thunderstorms this weekend south 0:13:41.200 --> 0:13:43.240 of the boundary, though the heat will persist not only 0:13:43.360 --> 0:13:45.400 this weekend but right into next week. 0:13:45.720 --> 0:13:48.240 You drop those words heat domb Those two words we've 0:13:48.280 --> 0:13:50.280 heard quite a lot over the last few days. Can 0:13:50.320 --> 0:13:53.520 you explain to us what exactly you mean by heat dumb? 0:13:53.920 --> 0:13:55.719 Well, it's one of those terms that's now come up, 0:13:55.760 --> 0:13:58.120 like the polar vortex that we use in the winter 0:13:58.200 --> 0:14:00.560 to talk about at upper level low pressure city that's 0:14:00.640 --> 0:14:03.040 just been always there during the winter months. It's just 0:14:03.080 --> 0:14:05.320 a different name for the Bermuda high. So what happens 0:14:05.440 --> 0:14:07.199 is high pressure sets up off the coast of the 0:14:07.240 --> 0:14:09.960 southeastern United States in the summer months. We get a 0:14:09.960 --> 0:14:12.960 broad southwesterly flow that brings hot and humid weather up 0:14:12.960 --> 0:14:15.520 from the Gulf Coast and pushes it northward into the 0:14:15.559 --> 0:14:19.040 mid Atlantic States and then into the Northeast. Usually we 0:14:19.120 --> 0:14:22.600 see these form June, July and into September. This one 0:14:22.640 --> 0:14:25.400 has developed earlier than normal and it's quite strong. So 0:14:25.440 --> 0:14:27.920 what we're seeing is that warm, humid air that develops 0:14:27.960 --> 0:14:30.560 along the Gulf coast in April and may moving northward 0:14:30.640 --> 0:14:32.000 up towards the Canadian border. 0:14:32.120 --> 0:14:34.120 Well, why is it forming earlier? 0:14:34.280 --> 0:14:34.520 Rob? 0:14:34.600 --> 0:14:36.960 Does that cause concern for you that we're seeing this 0:14:37.040 --> 0:14:39.840 kind of phenomenon happen this time in the summer. 0:14:40.200 --> 0:14:42.040 Well, we really didn't have much in the way of 0:14:42.120 --> 0:14:44.480 cold weather over the winter, Nathan, because of the El 0:14:44.600 --> 0:14:47.520 Nino that places the jet stream further north than normal, 0:14:47.760 --> 0:14:49.760 so we didn't get cool air out over the Gulf 0:14:49.760 --> 0:14:52.040 of Mexico this winter. It didn't move off the coast 0:14:52.160 --> 0:14:55.040 of the southeastern United States very much. So the Atlantic 0:14:55.080 --> 0:14:58.000 and Gulf are very warm, much warmer than they should 0:14:58.000 --> 0:15:00.800 be this time of year. You find hype pressure developing 0:15:00.800 --> 0:15:03.720 above warm water. So that's why things are developing the 0:15:03.720 --> 0:15:06.560 way they are this season. We knew, since we're making 0:15:06.560 --> 0:15:09.800 that transition from the al Nino into Align Nina, that 0:15:09.880 --> 0:15:13.160 the water temperatures would be warm. Usually those summers are warm, 0:15:13.320 --> 0:15:16.120 and the forecast day is for both June July and 0:15:16.200 --> 0:15:19.560 into August for temperatures to run above normal across much 0:15:19.640 --> 0:15:20.280 of the country. 0:15:20.560 --> 0:15:22.600 So in our last thirty seconds, Rob, I mean, we've 0:15:22.600 --> 0:15:25.360 been dealing with these above normal temperatures pretty much all 0:15:25.400 --> 0:15:27.840 week long. Is it normal for hot spells like this 0:15:27.960 --> 0:15:29.480 to last this long? This time here? 0:15:29.840 --> 0:15:31.880 They can. You got to keep in mind, since we're 0:15:31.960 --> 0:15:34.480 very close to the summer solstice, which was yesterday, the 0:15:34.520 --> 0:15:36.520 sun gets no stronger than it is right now. The 0:15:36.560 --> 0:15:38.320 days are very long. If you can set a high 0:15:38.400 --> 0:15:40.200 up at this time of year, Nathan, you're going to 0:15:40.280 --> 0:15:42.800 end up with some very warm temperatures. And that's exactly 0:15:42.840 --> 0:15:43.480 what's happening. 0:15:43.720 --> 0:15:46.640 This is Bloomberg day Break Today, your morning brief on 0:15:46.720 --> 0:15:50.320 the story's making news from Wall Street to Washington and beyond. 0:15:50.520 --> 0:15:53.280 Look for us on your podcast feed at six am 0:15:53.360 --> 0:15:57.040 Eastern each morning, on Apple, Spotify, and anywhere else you 0:15:57.080 --> 0:15:58.240 get your podcasts. 0:15:58.360 --> 0:16:01.080 You can also listen live each morning starting at five 0:16:01.120 --> 0:16:03.760 am Wall Street time on Bloomberg eleven three to zero 0:16:03.760 --> 0:16:07.240 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:16:07.240 --> 0:16:10.240 one oh sixty one in Boston, and Bloomberg ninety sixty 0:16:10.400 --> 0:16:11.360 in San Francisco. 0:16:11.720 --> 0:16:14.880 Our flagship New York station is also available on your 0:16:14.920 --> 0:16:20.360 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:16:20.400 --> 0:16:23.960 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:24.120 --> 0:16:27.880 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager 0:16:27.960 --> 0:16:29.240 and I'm Karen Moscow. 0:16:29.320 --> 0:16:32.080 Join us again tomorrow morning for all the news you 0:16:32.200 --> 0:16:35.440 need to start your day right here on Bloomberg Daybreak