Rising in yield, around five basis points. 4. 1522 is your spot. Oil adding . 72 a barrel to 83. 52. What are you watching . Jon the bullish commentary from the iea which is helping oil and energy stocks. You have seen green in things like also dental. But you do have the underlying we this in technology and heavyweights like nvidia now under pressure for the first day in a row. Then we have corporate stories we continue to track. Ubs is moving away from Government Support as part of the Credit Suisse after transaction which has sat well with investors globally with ubs at this hour of 5 . Now, we talked about the big deal between espn and 10 and penn. They shifted from barstool. David portnoy will be taking over again. Matt interesting move as well as ubs. Lets switch to hawaii. Rescue crews and aid on the way to lahaina, hawaii where wildfires killed at least 55 people and 7000 people remain unaccounted for. Lets bring in the associated administrative constructor. First of all, what do we know about efforts to find these thousand people that are missing. Anne thank you for having me. Our hearts go out to the families that have lost loved ones to this tragic incident and this wildfire that cause devastation through the lahaina community. There is a lot of effort underway. We are in the first phase of the disaster which means searchandrescue is ongoing, life safety. Ensuring people have food, water, cots. We have a Distribution Center in oahu that has millions of water, readytoeat meals, and food and blankets. All has been moved to hawaii to ensure we have what we need for survivors. Matt how has this much damage been done . I had previously never heard of wildfires in hawaii. Is it all about the increased heat over the last month . As that made everything dry and ripe for damage . Anne there are wildfires in hawaii. They typically have brush fires each year. This part of maui is on the dryer side of the alley. Over the past few decades, they have seen less rainfall than traditional. Some factors came into play with the fire spread as well as impacts of the Hurricane Force went from a system 700 miles Hurricane Force winds from a system around 700 miles away from the coast. Jon maybe you can shed light financially because that is an immediate question are many people in hawaii. The federal disaster declaration essentially and what the federal disaster declaration essentially a lot for you in terms of resources. Anne it unlocks federal resources including money which provides funding for home repair, services, Disaster Unemployment and crisis counseling. It also unlocks Small Business association loans for Small Businesses and homes that had damage due to fire. This is a Business District and towards the location. Not only will assistance flow to individuals and the team to build back infrastructure but also to businesses and homeowners in the form of loans. Jon there is a high priority on the situation right now. There was a fema report very recently showing the Disaster Fund would run entirely out of money by september with a 4 billion deficit. If you think ahead, how does the recovery effort in hawaii play into this . Are there limitations . Is there some kind of Budget Transfer Authority that can be tapped . Anne we have what we need in our response efforts to support hawaii. But the administration is working with congress to ensure the Disaster Relief fund can be replenished to ensure we will continue to have resources for other disasters as they occur. Matt kansas city, was formerly the capital of hawaii, be rebuilt dashcam this city can this city, once formerly the capital of hawaii, be read else . Anne that is one of the first things we are looking at. But we are also looking at hotels and those kinds of things which will eventually turn into longterm housing. We will be with hawaii until the job is done and will take time. This was a devastating impact and will take time to read the old but we will support the state and community. Matt thank you for joining us. Anne bink, associate administrator of response and recovery at fema, talking about the disaster in hawaii. Lets get to u. S. Politics with breaking news. U. S. Attorney general Merrick Garland is appointing an special counsels counsel to oversee the governments ongoing criminal investigation into president joe bidens son hunter. Writing as is kailey leinz. Kailey u. S. Attorney in delaware david weiss since 2019 has been conducting a criminal investigation into beau bidens son joe bidens son. He reached an initial plea agreement earlier this summer but fell apart in court and no new agreement has been. He is now being given special counsel designation and will now not be overseen on a daytoday basis by the justice department. Basically a difference in the chain of command. A sign they are trying to show independence to push back against criticism there has been political influence by ministration officials into this matter because that has been the messaging to this point from republicans. That there is a two tier system in the justice department. That it is being weaponized against former President Donald Trump while protecting the biden family. Donald trump said in a statement that the entire cricket biden family had been protected for decades. We also saw a republican representative james comer said the move by garland as part of their efforts to attempt a biden family cover up. He spoke about what they currently have on going into the entire biden family dealings. He should note that while we know hunter biden has received millions of dollars from overseas companies, there is no evidence that President Biden when Vice President was aware or benefited in any way or was influenced. But this is great political difficulty not just for a sitting president , but one seeking reelection in 2024. Now an ongoing congressional investigation into his son. The president has been reluctant to speak about hunter publicly. The white house has declined to speak to bloomberg about this and has not put out a statement, and has referred to the and Hunter Bidens own representatives. Jon thank you. We will continue to track the story as we are watching the latest on the recent and data showing a big Week Celebration when it comes to Producer Prices. Well talk about investor reaction and what fed plans Going Forward to look like. This is bloomberg. Welcome to the place where people go to learn about their Medicare Options before theyre on medicare. Come on in. Youre turning 65 soon . Yep. And youre retiring at 67 . Thats the plan well, youve come to the right place. Nows the time to plan ahead. Learn about an aarp Medicare SupplementInsurance Plan from unitedhealthcare. And how a plan like this helps you take charge of your health care with lower outofpocket costs. Heres why. Medicare alone doesnt pay for everything. Your deductibles and copays could add up to hundreds, even thousands of dollars a year. Everyones a little surprised to learn that one. Adding a Medicare Supplement plan helps pay some of what medicare doesnt. And that could mean fewer surprises and more predictable outofpocket costs. Call unitedhealthcare and ask for your free decision guide. Or talk with a licensed Insurance Agent or producer to learn more about plan benefits, options and rates. Medicare supplement plans let you choose any doctor, any specialist, anywhere in the us who accepts medicare patients. You dont have to deal with any networks or referrals. This kind of plan also goes with you anywhere you travel in the country. If youre turning 65 soon or over 65 and planning to retire. Find out more about the only Medicare Supplement plans endorsed by aarp. Thumbs up to that remember, the time to prepare is before you go on medicare dont wait. Get started today. Take charge of your health care. Call unitedhealthcare for your free decision guide and learn more about lowering your outofpocket medicare costs and seeing any doctor who accepts medicare patients. Oh, and happy birthday. Or retirement. In advance. Where is the reacceleration going to come from . We have moderating growth, unemployment is low but starting to edge of. Wage increases are starting to moderate. You cannot get it through the credit channel because credit is tight and tightening. Globally, we have real weakness coming from china and europe. I am wondering where this big reading celebration in inflation will come from outside of energy. Jon i am Jon Erlichman with matt miller. We were just hearing from kathy jones, reacting to the july ppi report which came in stronger than x did. We are joined from washington with more. Ask were story outlines, we had seen improvements for producers over the last year or a portion of the last year and now we are starting to talk about fresh headwind. Reid absolutely. That picture, you have seen Producer Prices move back toward the prepandemic trend. Todays report shows decent prices moved more than x acted Producer Prices moved more than expected because of different flows. This went into the fed preferred inflation gauge which is the pce at the end of the month. 40 of the increase of Services Prices came from Portfolio Management fees, something that feeds both into the core pce at the end of the month and the super core measure folks looked at closely. Compared to what we saw yesterday in terms of the sustained progress 22 goal, at the end of the month, we could get a jump scare as prices feed into these figures. Matt what are we looking at in terms of expectations for factory prices Going Forward . What could them higher . Reade Rising Oil Prices is a concern. One thing on the porch is 8 in food prices, most notably from meat. As this moves toward consumers, that is the earning. Grocery prices are on the rise and if there is more food inflation in the pipeline, that is something that could hit consumers in a way rising gasoline prices go as well. Matt i thought you said a pop in food prices from me, but you said meat. Thank you very much for joining us on this inflation that we have been covering closely. Reade pickert. Lets continue with bill adams, chief economist from america. We have heard we could see more food inflation and Airline Ticket prices could go higher. Medical costs could rise. Home prices continue to rise. Even though economists say in the shortterm it does not have an effect on the, in the long term, it does. Bill you can look at what has happened with the wages in the monthly jobs report since spring where we have seen average Hourly Earnings at a stable 4. 34 yearoveryear. That is higher than prior to the pandemic. The last couple years, 2018, 2019, when unemployment was normal, we saw average Hourly Earnings. There is a possibility we could see wage pressures feeding into a higher inflation of Service Pressures into 2024. That is one of the big upside risks. Jon lets talk about your own expectations on rate policy. If i am not mistaken, you would not be surprised if there was another rate hike. Moving into next year, the idea of rate cuts is something you are thinking strongly about. Bill into the next fed decision, i think it is highly likely they will pause again. It is likely that they will pass come away for more data and then consider more seriously and another hike at the november decision. I think we have seen high increases of housing and since the spring. Wage inflation is still an issue. I see it more likely than not that the that airs on the sides of more restraint rather than airing by not tightening race enough which says another rate hike is a little more likely than not in november area even with that said, we are seeing a lot of relief on infraction thats inflation pressures. We have a huge wave of multifamily units under construction. Renting households will see a lot of relief end lot of bedrooms to take on new leases over the next release and incentives to take on new leases. Even though we still see upside risk to inflation, there is Downside Risk as well. The fed is more likely than not going to switch to rate cuts by the first half of next year. I have one penciled into my forecast in march. Jon kind of like a gradual reduction . Bill i have 25 basis points for quarter per quarter in my 2024 forecast. That is a pretty slow pace of rate cuts and slower than it is priced into Financial Markets the last i looked. I think that is the learned that the economy operating with a relatively small margin of Spare Capacity and with signs of wage growth is so very robust in the u. S. That we still can see inflation pressures revised because of this. I think that is why they will be relatively has relatively hesitant to take the foot off the brake, even though we are seeing a lot of fun inflation. Annualized pci is up 2 . That is good news and core inflation looks like it will slow through you and day through year end. I think slower pace production in 2024 if they do not want to make these a mistake again. The mistake until now as they were not aggressive enough on controlling inflation. Matt why cut at all . If we are still seeing growth . At 3. 5 unemployment. What will push them to cut . A jump to four or 4. 5 . Bill keeping it under 4 for two months in a road is really low. In a row is really low. We are seeing disinflationary pressures in a lot of parts of the economy. The Housing Market operated at a much lower clip that we saw in 2021 and 2022. It seems like we should translate over time. It is an obvious call to think we should move toward the fed target. The fed has been making that call for a couple years. All the tools the Economic Forecasters disposal say it makes sense to expect cooler inflation but those tools have not armed as well lately and that is why the cautious. Jon helpful insight. Thank you for your time on this friday. Bill adams from the comerica economics team. Coming up, United Auto Workers demands possibly forcing u. S. Carmakers to nearly triple the hourly cost for union wages. This is bloomberg. 76 of 23andme Health Customers surveyed reported taking healthier actions. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. And your store was also the first time you realized. Well, we can do anything. Cheesecake cookies . The chookie manage all your sales from one place with a partner that always puts you first. we did it start today at godaddy. Com jon this is bloomberg markets. I am Jon Erlichman with matt miller. Time for our stock of the hour. The automakers shares at gm have been lower the last four sessions as the United Automakers Union is calling for changes that could add more than 80 billion of expenses. The union wants a 46 wage increase, restoration of pensions, costofliving increases, and shorter work week and better retirement benefits. A lot on the agenda and the market is paying close attention. Matt absolutely, especially considering gm and ford with union wages pay workers so much more than competitors out of asia to produce cars in the u. S. , and a lot more than tesla does. Lets discuss this with bloomberg chief damon welch. The analysis i read suggested gm paced around 64 an hour but the unions want it to go up to 100 two over 100 an hour. How does this work . David this includes benefits the union wants. Tarantino pension benefits and Retirement Health care. Those are big ticket items that they probably will not get. There is a huge fund that pays for Retiree Health care and does it well. On the pension side, that is something the companies will never give in on. If you take those away, this will not be as much of an incident agreement and the Company Knows that especially after holding the line on pay raises and not getting a costofliving allowance while we had tough inflation the past few years. We have seen record profits from the auto companies. They want to get paid. But a lot of bigticket items, the companies will not do. You will see a lot coming out of this. Jon we only have 30 seconds but this comes at complicated time. These automakers going through a big tv transition. David that is right. It is costing billions for all these companies to convert over from electric to write electric. Gm has not given us numbers but it will not be profitable until 2025. These Big Companies are spending money and losing money in the early days and you did wants bigger pay so it is a tense time. Matt great reporting. David . David welch, his team writing about this. Jon erlichman, i am matt miller. This is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Its an amazing thing when you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. We have been able to reach over 100 Million People impacted and affected, and at risk of hiv. The rocket fund takes all of the work that were doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. The idea that we have saved five Million Peoples lives, its overwhelming. Its everything. A second down week for u. S. Equities. Im romaine bostick. Im katie greifeld. About two hours to go to the closing bell. You are looking at a down market. The s p off by. 2 . Big tech taking the brunt of the selling. The treasury selloff continuing. You take a lok