WEBVTT - Bloomberg Daybreak: September 28, 2022 - Hour 2 (Radio) 0:00:02.120 --> 0:00:05.560 Live from the Bloomberg Interactive Brooker Studios is Bloomberg day 0:00:05.600 --> 0:00:10.360 Break for Wednesday, September two. Coming up this hour. Evacuations 0:00:10.360 --> 0:00:12.920 are underway and theme parks are shutting their doors as 0:00:13.000 --> 0:00:16.000 hurricaney And aims at Florida. Global stocks are heading for 0:00:16.040 --> 0:00:19.160 the lowest level in almost two years. Ten year treasury 0:00:19.200 --> 0:00:22.319 yields breached four percent, and the dollar rises after the 0:00:22.320 --> 0:00:25.080 White House talks down the prospect of a currency agreement, 0:00:25.239 --> 0:00:28.000 Mixed reaction to the so called tent city for migrants 0:00:28.000 --> 0:00:31.840 and the Bronx plus Ukrainian President Zelenski dismisses the Krumlin 0:00:32.040 --> 0:00:35.400 run referendum as a farce. I'm Michael Blar more ahead, 0:00:35.479 --> 0:00:38.159 I'm John Stash awards towards the Yankees wanted Toronto and 0:00:38.240 --> 0:00:40.599 clips the a l Etham that's lost in an out 0:00:40.640 --> 0:00:45.879 tied for first with Atlanta. That's all training ahead on 0:00:45.960 --> 0:00:51.640 Bloomberg Daybreak on Bloomberg eleven, TREEO, New York, Bloomberg one, Washington, 0:00:51.760 --> 0:00:55.360 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.400 --> 0:00:59.240 sixties and Francisco Sirius x M one nine Team and 0:00:59.320 --> 0:01:02.040 around the World Old on Bloomberg Radio Dot com and 0:01:02.200 --> 0:01:08.800 via the Bloomberg Business app. Good morning, I'm Nathan Higger 0:01:09.080 --> 0:01:12.119 and I'm Karen Moscow. US DOT Index futures are lower 0:01:12.200 --> 0:01:14.040 this morning. We are coming up to six oh one 0:01:14.080 --> 0:01:16.119 on Wall Street, and we check the markets every fifteen 0:01:16.160 --> 0:01:19.600 minutes throughout the trading day. On Bloomberg SMP futures down 0:01:19.680 --> 0:01:22.399 forty six points down, futures down two hundred ninety six 0:01:22.720 --> 0:01:25.640 and as deck futures down one hundred ninety. Ten year 0:01:25.680 --> 0:01:29.160 treasury down fifteen thirty seconds, yield four percent, and they 0:01:29.240 --> 0:01:32.040 yield on the two year four point to three percent. 0:01:32.200 --> 0:01:34.319 Nathan Karen will have much more on the market term 0:01:34.319 --> 0:01:35.880 well in just a minute, but first we want to 0:01:35.880 --> 0:01:38.680 bring up to speed on Hurricane Ian, now a dangerous 0:01:38.760 --> 0:01:41.440 Category four storm with top winds at a hundred forty 0:01:41.440 --> 0:01:45.039 miles an hour taking aim at Florida's Gulf Coast. Bloomberg 0:01:45.080 --> 0:01:47.680 Meteorologist Robed Carolyn joins US now with the latest on 0:01:47.720 --> 0:01:50.160 the track of the storm. Good morning, Rob, Nathan and Karen. 0:01:50.280 --> 0:01:53.320 Hurricane Ian continues to move north northeast and around ten 0:01:53.360 --> 0:01:56.680 miles an hour this morning. Is a dangerous hurricane. The 0:01:56.680 --> 0:01:59.000 winds in excess of a hundred and twenty miles an hour. 0:01:59.120 --> 0:02:01.120 We were seeing wind gus over sixty miles an hour 0:02:01.160 --> 0:02:03.560 earlier this morning in Key West. The store will make 0:02:03.640 --> 0:02:06.440 landfall later today somewhere north of Fort Myers too, as 0:02:06.440 --> 0:02:09.000 far north as Tampa, and then it will start to 0:02:09.040 --> 0:02:11.840 move inland. We're expecting the hurricane force winds to extend 0:02:11.840 --> 0:02:14.080 down at least forty five miles from the center of circulation, 0:02:14.240 --> 0:02:16.080 so there's gonna be a lot of damage across that 0:02:16.120 --> 0:02:20.120 portion of West Florida between Fort Myers and the Tampa area. 0:02:20.520 --> 0:02:22.560 Storm surge is probably going to be an excess of 0:02:22.600 --> 0:02:25.120 ten feet. We'll see win us over a hundred and 0:02:25.160 --> 0:02:27.440 twenty five miles an hour, and along the path of 0:02:27.480 --> 0:02:29.560 the storm, anywhere from five to ten inches of rain 0:02:29.720 --> 0:02:31.720 is likely to fall over the course of the next 0:02:32.400 --> 0:02:35.280 forty eight hours. Nathan and Karen alright, Rob, thank you. 0:02:35.360 --> 0:02:37.840 Of course. He'll be checking in with Bloomberg meteorologist robbed 0:02:37.880 --> 0:02:40.640 Caroline throughout the morning. Well ahead of the storm. Disney 0:02:40.720 --> 0:02:43.919 Sea World and Universal Orlando have shut their Florida theme 0:02:43.960 --> 0:02:47.680 parks through at least tomorrow. Tampa's main airport closed up yesterday. 0:02:47.919 --> 0:02:50.680 Orlando plans to do the same later this morning, Governor 0:02:50.760 --> 0:02:53.880 Rhonda Santis says about two and a half million Floridians 0:02:54.200 --> 0:02:56.639 need to get out of harm's way. If you are 0:02:56.760 --> 0:03:01.840 in an evacuation zone, particularly in those South It's Florida counties. Uh, 0:03:01.880 --> 0:03:05.640 you know your time to evacuate is coming to an end. Uh, 0:03:05.720 --> 0:03:09.200 you need to evacuate now. Governing around to Santis spoke 0:03:09.240 --> 0:03:11.920 with the President Biden last night. The President says FEMA 0:03:11.960 --> 0:03:14.239 has deployed seven hundred people to Florida and up to 0:03:14.320 --> 0:03:17.440 seven thousand members of the National Guard are being activated. 0:03:17.680 --> 0:03:20.440 The storm has also forced the House January six Committee 0:03:20.480 --> 0:03:23.600 to postpone its latest public hearing this afternoon. No new 0:03:23.680 --> 0:03:25.440 date has been set. All right, Let's get back to 0:03:25.480 --> 0:03:28.560 markets now, Karen, where the equities sell off continues. Global 0:03:28.600 --> 0:03:31.160 stocks are heading for their lowest level in almost two years, 0:03:31.360 --> 0:03:34.280 The yield on ten year treasuries breached four percent for 0:03:34.320 --> 0:03:36.960 the first time since two thousand eight, and the dollar 0:03:37.080 --> 0:03:39.560 is soaring. After the White House talk down the prospect 0:03:39.760 --> 0:03:41.960 of a currency agreement to week in the green Back, 0:03:42.200 --> 0:03:45.200 White House, National Economic Council Director Briand says he does 0:03:45.240 --> 0:03:49.000 not expect another five type deal among major economies to 0:03:49.120 --> 0:03:52.080 counter dollar strength. Do you see any possibility of a 0:03:52.160 --> 0:03:55.360 global accord the kind of adjust UH currency values the 0:03:55.400 --> 0:03:57.440 way there was with the pump plaza corners that just 0:03:57.520 --> 0:04:00.920 not pumping are focused on. I want to anticipate that 0:04:01.040 --> 0:04:04.360 that's UH, that that's that, that's where we're headed. White 0:04:04.400 --> 0:04:07.320 House National Economic Council Director Brian Deese made those comments 0:04:07.320 --> 0:04:09.680 in an interview on the David Rubinstein Show, Peer to 0:04:09.720 --> 0:04:13.560 peer conversations on Bloomberg Television and aggressive. FED is also 0:04:13.600 --> 0:04:16.160 a feel the dollars rally, Nathan. Of course, the central 0:04:16.200 --> 0:04:18.920 bankers is doubling down on the need to keep raising 0:04:19.040 --> 0:04:22.120 rates in the face of inflation. San Francisco FED President 0:04:22.160 --> 0:04:24.600 Mary Daily says the hikes could have an impact on 0:04:24.640 --> 0:04:27.040 the labor market. Have to balance that off with our 0:04:27.120 --> 0:04:30.599 dual mandate with full employment and trying to navigate that 0:04:30.839 --> 0:04:35.200 to bring inflation down while we do so as gently 0:04:35.240 --> 0:04:39.320 as possible, not to tip unnecessarily the economy into a 0:04:39.800 --> 0:04:43.200 down turn that actually influences the full employment part of 0:04:43.200 --> 0:04:46.560 our mandate is a struggle. San Francisco FED President Mary 0:04:46.640 --> 0:04:48.800 Daily is currently not a voting member on the f 0:04:48.920 --> 0:04:51.479 O m C. The dollars recent gains against the Euro 0:04:51.520 --> 0:04:54.840 and the pound accelerated, Karen after the UK announced massive 0:04:54.880 --> 0:04:57.840 tax cuts last week. Bank of England chief economist Hugh 0:04:57.880 --> 0:05:01.120 Phill says a significant monetary paul See response is needed 0:05:01.240 --> 0:05:04.919 in a context where there is a rebalancing of the 0:05:04.960 --> 0:05:10.720 macro policy environment and an anticipation of looser fiscal policy. 0:05:11.000 --> 0:05:14.200 I think it's hard not to draw the conclusion that 0:05:14.320 --> 0:05:20.279 all this will require a significant monetary policy response. Bioi's 0:05:20.320 --> 0:05:22.599 chief economist h Hill says the best time to act 0:05:22.680 --> 0:05:26.039 is at the institution's next meeting in November. Meanwhile, Nathan, 0:05:26.080 --> 0:05:29.400 global criticism of the UK's fiscal plan is growing this morning, 0:05:29.400 --> 0:05:30.920 and let's go to learn it and get the details 0:05:30.960 --> 0:05:33.320 from Bloomberris U and parts. Good morning you and good 0:05:33.320 --> 0:05:35.400 morning Nathan and Karen. The I m F has delivered 0:05:35.400 --> 0:05:38.640 a stinging rebuke of the UK's new unfunded tax plans. 0:05:38.880 --> 0:05:41.839 The International Monetary Fund says the government's package of tax cuts, 0:05:41.880 --> 0:05:45.320 the biggest in fifty years, are excessive and in need 0:05:45.480 --> 0:05:48.839 of revision. It says physical policy should not work across 0:05:48.880 --> 0:05:52.320 purposes with monetary policy. Chance l Quasi Quote meets with 0:05:52.400 --> 0:05:55.279 top Wall Street bankers in London later today. Hill set 0:05:55.360 --> 0:05:57.600 up by his UK go plan is still the right 0:05:57.640 --> 0:05:59.960 thing to do in London. I'm you in part Splinberg 0:06:00.120 --> 0:06:01.960 break are you in Thanks? Back in the US, the 0:06:01.960 --> 0:06:03.840 White House may be getting ready to shake up its 0:06:03.839 --> 0:06:06.719 economic team, according to Axe, As, officials are preparing for 0:06:06.760 --> 0:06:09.840 Treasury Secretary Janet Yelling to depart after the mid terms. 0:06:10.120 --> 0:06:12.719 A White House spokesperson says the Secretary does not plan 0:06:12.800 --> 0:06:15.839 to leave. Top economic advisor Brian Deese also says he 0:06:15.920 --> 0:06:18.560 has no plans to the part On Capitol Hill, Nathan 0:06:18.600 --> 0:06:21.159 House Democrats have released a bill that would restrict stock 0:06:21.200 --> 0:06:24.560 ownership for a high ranking government officials that includes members 0:06:24.600 --> 0:06:28.039 of Congress, the President, Vice president, Supreme Court justices, and 0:06:28.120 --> 0:06:32.800 their spouses and dependent children. It covers commodities, futures, cryptocurrency, 0:06:32.880 --> 0:06:35.599 or other digital assets. Public officials would have to put 0:06:35.600 --> 0:06:38.120 them in a blind trust or divest their holdings and 0:06:38.200 --> 0:06:41.560 shares of Biogen are Soaring care in their upto percent. 0:06:41.800 --> 0:06:45.160 Biogen and its partner as I say their drug significantly 0:06:45.200 --> 0:06:49.200 slowed Alzheimer's disease, making it the first medicine to blunt 0:06:49.200 --> 0:06:52.279 progression of the most common dementia. In a definitive, large 0:06:52.279 --> 0:06:54.680 scale trial, and this update brought to you by b 0:06:54.839 --> 0:06:57.359 on why Melon's Perishing. Learn why the world's most sophisticated 0:06:57.400 --> 0:07:00.120 wealth management and institutional firms rely on perishing to help 0:07:00.160 --> 0:07:03.920 them improve profitability, create efficiency, attract talent, and managed risk 0:07:03.960 --> 0:07:07.040 at pershing dot com. And we are watching these headlines 0:07:07.080 --> 0:07:09.640 with UK bonds surging and the pound rising after the 0:07:09.640 --> 0:07:11.800 Bank of England said it's going to carry out temporary 0:07:11.880 --> 0:07:16.080 purchases of elongdated UK bonds and your local headlines are 0:07:16.240 --> 0:07:23.840 straight ahead and this is Bloomberg I, Karen, thank you 0:07:23.960 --> 0:07:26.440 to six oh seven on Wall Street where fifty four 0:07:26.440 --> 0:07:29.040 degrees in Central Park and still dealing with an accident 0:07:29.040 --> 0:07:30.800 on the southbound New York State through Way near the 0:07:30.840 --> 0:07:33.600 Tapanzee Bridge. Michael bar is here with more on what's 0:07:33.640 --> 0:07:35.720 going on in New York and around the world. Michael, 0:07:35.800 --> 0:07:38.880 thank you very much. Nathan. There's controversy over a temporary 0:07:38.920 --> 0:07:42.400 humanitarian relief center being built in the Bronx has more 0:07:42.480 --> 0:07:46.200 immigrants arrived from Texas. The so called tent city in 0:07:46.440 --> 0:07:49.200 Orchard Beach will be heated and can house up to 0:07:49.240 --> 0:07:53.200 a thousand migrants. Mayor Adams said the tents are supposed 0:07:53.200 --> 0:07:55.920 to be a temporary stop for migrants as they get 0:07:55.960 --> 0:07:58.000 on their feet. We want to make sure that we 0:07:58.120 --> 0:08:02.720 bring people into UH a safe, clean environment as we 0:08:02.760 --> 0:08:05.800 process them for a few days to figure out their 0:08:05.840 --> 0:08:08.320 knees and move them to the right location. But immigrant 0:08:08.400 --> 0:08:11.520 rights advocates say this is a terrible location, far from 0:08:11.560 --> 0:08:14.960 mass transit or other services the migrants might need, and 0:08:15.000 --> 0:08:18.640 some residents say they are fearful. New York Mayor Adams 0:08:18.680 --> 0:08:21.240 talked about his return from Puerto Rico and the Dominican 0:08:21.280 --> 0:08:24.920 Republic in the aftermath of Hurricane Fiona. New York lawmakers 0:08:24.920 --> 0:08:27.640 are calling for more federal aid to help with recovery 0:08:27.680 --> 0:08:30.880 for the island. New York City Council Member Oswald police, 0:08:31.320 --> 0:08:34.640 what's happening in Puerto Rico and the Dominican Republic is 0:08:34.679 --> 0:08:39.160 extremely sad. It's a horrible tragedy. These are communities that 0:08:39.240 --> 0:08:43.480 have worked for everything that they have, those small businesses, 0:08:43.960 --> 0:08:47.400 those homes, they have worked for it. Council Member Police 0:08:47.520 --> 0:08:49.720 says the City of New York will be with Puerto 0:08:49.800 --> 0:08:52.640 Rico and the Dominican Republic every step of the way. 0:08:53.280 --> 0:08:56.520 Moscow backed officials declare that all four occupied regions in 0:08:56.679 --> 0:09:00.040 Ukraine voted in favor of joining Russia. Russia conducted with 0:09:00.200 --> 0:09:04.600 Ukrainian leader voladimir's Alinsky called a sham referendum. US Ambassador 0:09:04.600 --> 0:09:08.720 at Linda Thomas Greenfield the United States will never recognize 0:09:08.840 --> 0:09:14.000 any territory Russia attempts to seize are allegedly annex as 0:09:14.120 --> 0:09:18.520 anything other than part of Ukraine. Ambassador Thomas Greenfield the 0:09:18.640 --> 0:09:22.480 US will allow a limited number of refugees in three. 0:09:22.720 --> 0:09:25.120 President Biden said it would welcome up to a hundred 0:09:25.120 --> 0:09:28.120 twenty five thousand refugees this year, and we'll let him 0:09:28.160 --> 0:09:30.880 the same number in the next. One of the January 0:09:30.920 --> 0:09:34.040 six rioters who attack police officer Michael Panone has been 0:09:34.080 --> 0:09:37.400 sentenced to more than seven years in prison. Kyle Young 0:09:37.480 --> 0:09:40.800 of Viola began crying and begging for forgiveness during his sentence. 0:09:41.360 --> 0:09:43.840 Global News twenty four hours a day on air and 0:09:43.960 --> 0:09:47.240 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:47.280 --> 0:09:50.040 journalists and analysts in more than a hundred twenty countries. 0:09:50.080 --> 0:09:57.440 I'm Michael Barr. This is Bloomberg, Nathan. Thanks Michael six 0:09:57.480 --> 0:09:59.480 o nine on Wall Street time for the Bloomberg Sports 0:09:59.480 --> 0:10:02.640 Something with on Thanks Naton. The Yankees hoping. Last night's 0:10:02.640 --> 0:10:07.320 division clinching celebration in Toronto, the first of many Champagne celebrations, 0:10:07.360 --> 0:10:09.440 they beat the Blue Jays five to two. Labor Torres 0:10:09.480 --> 0:10:12.800 had three hits, three irbis, and Jamisonion pitched into the eighth. 0:10:12.800 --> 0:10:15.680 Didn't get a fourtteenth win for Aaron Judge, a line 0:10:15.679 --> 0:10:18.439 out in the first inning and then four straight walks. 0:10:18.480 --> 0:10:22.360 So still not home run number six and one, but 0:10:22.800 --> 0:10:26.320 a division champ yanks twentieth from team history. They take 0:10:26.360 --> 0:10:28.640 advantage of the new format where the top two teams 0:10:28.640 --> 0:10:31.240 get a first rand by into the division series. In 0:10:31.280 --> 0:10:32.920 the a L, that'll be the Yanks and Astros, and 0:10:32.960 --> 0:10:35.040 the NL Dodgers will be joined by whoever wins the 0:10:35.120 --> 0:10:37.480 n L East. And right now, that's the flat footed 0:10:37.520 --> 0:10:40.240 tie between the Mets and Braves Atlanta one at Washington, 0:10:40.280 --> 0:10:43.320 the Mets loss at City Field in Miami six to four. 0:10:43.360 --> 0:10:46.840 Carlos Carrasco lasted just three innings, gave up four runs, 0:10:46.880 --> 0:10:49.360 Trevor Williams gave up two more. Peter Alonzo and defeat 0:10:49.360 --> 0:10:51.599 at three run over is forty leads the Majors with 0:10:51.640 --> 0:10:53.839 a hundred and thirty one RBI seven games to go 0:10:54.320 --> 0:10:57.360 and including this weekend three games series in Atlanta. If 0:10:57.400 --> 0:10:59.240 the two teams finished in the tie, the Mets will 0:10:59.240 --> 0:11:01.960 almost certainly win the five breaker. The only way Atlanta 0:11:02.000 --> 0:11:04.319 wins the season series is if they sweep this weekend, 0:11:04.360 --> 0:11:07.200 and if they do, they'll probably win the division outright. 0:11:07.200 --> 0:11:09.600 All is well in Brooklyn after a turbulent off season 0:11:09.679 --> 0:11:12.960 where Kevin Durant demanded that the Nets trade him unless 0:11:13.000 --> 0:11:15.599 they fire Coachdeed. Nat knowing Kevin, as long as I 0:11:15.640 --> 0:11:18.600 haven't didn't really bother me the way maybe everyone would think, 0:11:18.920 --> 0:11:22.000 you know, that's a part of being competitors. I wasn't 0:11:22.040 --> 0:11:26.319 like um overly surprised, and I wasn't even overly concerned. 0:11:26.480 --> 0:11:27.880 You know, this is something that I thought we would 0:11:27.880 --> 0:11:30.960 address and in time, and we did, and and here 0:11:30.960 --> 0:11:33.079 we are, and we're looking forward. I think that's uh, 0:11:33.240 --> 0:11:34.679 you know, there's something in this that we can all 0:11:34.720 --> 0:11:36.719 gle all from as well. Nash said, the Nets are 0:11:36.920 --> 0:11:39.320 like a family, and all families have issues. John Stash 0:11:39.360 --> 0:11:42.880 award Bloomberg's Boys, Okay, John, thanks. SB futures down twenty 0:11:42.880 --> 0:11:45.400 one point, Sound futures down a hundred eight. Nastact futures 0:11:45.400 --> 0:11:49.160 are lower by a hundred twelve points. The British pound 0:11:49.200 --> 0:11:52.640 is trading at one point zero six eight two against 0:11:52.720 --> 0:11:54.719 the dollar after the Bank of England announced it will 0:11:54.720 --> 0:11:59.440 carry out temporary purchases of long dated guilt starting today 0:11:59.520 --> 0:12:03.480 to door order league market conditions. You're listening to Bloomberg 0:12:03.520 --> 0:12:09.240 ca Bread Bloomberg eleven three oh weather sunny today with 0:12:09.280 --> 0:12:11.679 a hind year seventy degrees, mid fifties Tonight, We'll get 0:12:11.720 --> 0:12:16.360 into the upper sixties with sunshine tomorrow and Friday. Right 0:12:16.360 --> 0:12:23.760 now fifty four in Central Park Markets, headlines and breaking 0:12:23.760 --> 0:12:26.680 news twenty four hours a day at Bloomberg dot Com, 0:12:26.800 --> 0:12:31.000 the Bloomberg Business Out and at Bloomberg Quicktap's a Bloomberg 0:12:31.080 --> 0:12:40.319 Business Clash. And I'm Karen Moscow. And the dollar is 0:12:40.360 --> 0:12:42.800 soaring to another record after the White House talked down 0:12:42.840 --> 0:12:45.760 the prospect of weakening the currency, while the continuing global 0:12:45.800 --> 0:12:48.400 bond route pushed ten year treasury yields to the hyacinths. 0:12:48.440 --> 0:12:51.120 Two thousand and eight. UK bonds are searching after the 0:12:51.120 --> 0:12:53.880 Bank of England said it would carry out temporary purchases 0:12:53.920 --> 0:12:56.480 of long dated UK bonds and delay planned sales of 0:12:56.559 --> 0:13:00.839 debt and Asian stocks are made in April lows, while 0:13:00.840 --> 0:13:03.160 the dollars sword after the White House talked down the 0:13:03.160 --> 0:13:06.040 prospect of a currency agreement to weaken the greenback. We 0:13:06.120 --> 0:13:09.840 get more unmapped with Bloomberg's Juliette Sally, Good Morning, Karen. 0:13:09.880 --> 0:13:12.559 The dollars rally brought further losses to e m f X, 0:13:12.600 --> 0:13:15.120 with China's on showy one falling to the weakest level 0:13:15.120 --> 0:13:17.880 against the greenbacks since the global financial crisis in two 0:13:17.880 --> 0:13:20.960 thousand and eight and the offshore hitting a record low. 0:13:21.320 --> 0:13:23.480 The yen remained near the key one for five mark 0:13:23.559 --> 0:13:25.640 against the dollar and within side of levels that have 0:13:25.720 --> 0:13:29.240 drawn intervention from Japan. Australia's ten ure yield reached a 0:13:29.320 --> 0:13:32.880 three month high. Japan's benchmark yield untraded after closing at 0:13:32.880 --> 0:13:35.640 the upper limit of the Central Banks target band. On Tuesday, 0:13:36.000 --> 0:13:38.880 Apple supplies in the region fell after Bloomberg reported the 0:13:38.880 --> 0:13:41.480 company is backing off from plans to increase production of 0:13:41.480 --> 0:13:44.000 its new iPhones this year. A lot of them traded 0:13:44.000 --> 0:13:47.040 on South Korea's Cosby, which fell to July twenty twenty 0:13:47.080 --> 0:13:51.200 lows in Singapore. Juliet Sally Bloomberg Daybreak Right, Juliet Thank you, 0:13:51.240 --> 0:13:53.959 and futures are lower, with SMP futures down thirteen points 0:13:53.960 --> 0:13:56.839 and DOWN futures down forty two. Nowday futures down ninety 0:13:56.920 --> 0:13:59.439 two and a ten year treasury up eleven thirty seconds. 0:13:59.520 --> 0:14:02.199 Year three nine zero percent held on the two year 0:14:02.280 --> 0:14:04.680 four point one six percent. And we continue to watch 0:14:04.679 --> 0:14:07.160 shares of Biogen of more than forty three percent in 0:14:07.240 --> 0:14:11.000 early trading after it said it drugs significantly slowed Alzheimer's disease. 0:14:11.280 --> 0:14:13.760 That's a Bloomberg business flash. Now here's Michael Barr with 0:14:13.840 --> 0:14:16.439 more on what's going on around the world. Michael Karen, 0:14:16.480 --> 0:14:18.440 thank you very much. Hurricane e And is turning in 0:14:18.440 --> 0:14:21.360 the Gulf of Mexico and is about seventy five miles 0:14:21.360 --> 0:14:24.920 from Naples, Florida. The National Hurricane Center says he And 0:14:24.960 --> 0:14:29.080 has strengthened to a Category four storm. Thousands of flights 0:14:29.080 --> 0:14:32.760 have been canceled. At the United Nations, top diplomats are 0:14:32.840 --> 0:14:37.760 dismissing the early results of staged referendums in Russian occupied 0:14:37.800 --> 0:14:41.040 areas of Ukraine. Some Ukrainians say they were forced to 0:14:41.120 --> 0:14:44.880 vote at gunpoint. North Korea fire do ballistic missile off 0:14:44.920 --> 0:14:48.200 its eastern coast today that's according to South Korea's Joint 0:14:48.240 --> 0:14:50.560 chiefs of Staff. That comes the day before US Vice 0:14:50.560 --> 0:14:54.440 President Kamala Harris was set to visit the demilitarized Zone 0:14:54.480 --> 0:14:57.480 dividing the nations. The missile is the second launch by 0:14:57.480 --> 0:15:00.240 North Korea this week. In baseball, the Yankees to the 0:15:00.280 --> 0:15:03.120 Al East, beating the Blue Days five to Aaron Judge 0:15:03.480 --> 0:15:05.920 was walked four times, remains at sixty home runs, one 0:15:05.920 --> 0:15:09.080 shy of Roger Mara's sixty one record. The Mets lost, 0:15:09.120 --> 0:15:12.080 the Red Sox down the Orioles, thirteen nine a's and 0:15:12.200 --> 0:15:15.000 National's lost Giants. One. Global news twenty four hours a 0:15:15.040 --> 0:15:17.120 day on aerand on Bloomberg Quick Take power by more 0:15:17.120 --> 0:15:20.120 than twentie hunder journalist analysts, more than twenty countries. And 0:15:20.200 --> 0:15:22.680 Michael Barb this is Bloomberg, Nathan, Thanks Michael. Six twenty 0:15:22.720 --> 0:15:25.280 on Wall Street Life in the Bloomberg Interactive Broker Studios, 0:15:25.360 --> 0:15:27.440 this is Bloomberg Daybreak. We want to focus now on 0:15:27.440 --> 0:15:30.040 the auto industry at a big new product release from 0:15:30.120 --> 0:15:33.440 Ford Motor Company, The automaking giant has unveiled to redesign 0:15:33.560 --> 0:15:37.480 F series super duty truck at Churchill Downs in Louisville. Kentucky. 0:15:37.840 --> 0:15:41.880 Ford CEO Jim Farley says traditional gas powered vehicles will 0:15:41.920 --> 0:15:44.920 be a profit and cash engine that finances the company's 0:15:45.000 --> 0:15:48.640 electric car ambitions. Jim Farley spoke more about the truck 0:15:48.760 --> 0:15:52.200 and Ford's long term strategy with Bloomberg's David Weston. Let's 0:15:52.200 --> 0:15:55.240 listen in to that conversation. Now, the Super Duty, this 0:15:55.360 --> 0:15:58.520 new F series, it is one big truck. Tell us 0:15:58.560 --> 0:16:01.760 how it is different from what we've seen before, David. 0:16:01.800 --> 0:16:05.760 You have more towing, more hauling, you know, more power 0:16:05.760 --> 0:16:08.200 out of the motors. We have four motor options. But 0:16:08.280 --> 0:16:11.760 I think the real change here is the technology. It's 0:16:11.760 --> 0:16:14.360 the first truck to have five G integrated. We have 0:16:14.480 --> 0:16:17.480 all sorts of trailer features. Even you can even set 0:16:17.520 --> 0:16:21.680 the navigation to a preferred route for for trailers because 0:16:21.680 --> 0:16:24.880 that navigation would be totally different than our retail customers. 0:16:24.880 --> 0:16:28.080 So it's really investing in technology. We can now ship 0:16:28.160 --> 0:16:31.680 software to this truck um where we haven't before and 0:16:31.680 --> 0:16:34.640 our competitors haven't, and that's becoming a bigger and bigger 0:16:34.640 --> 0:16:38.760 issue opportunity for us. We have a Ford Pro business 0:16:38.800 --> 0:16:42.600 and our software sales are growing about a quarter because 0:16:42.640 --> 0:16:45.840 we can ship software to the car. What about electric biggles? 0:16:45.880 --> 0:16:48.400 Is there going to be a version that this electric fiels? Ever? 0:16:49.160 --> 0:16:52.160 You know, look, we're the we're the number two electric 0:16:52.160 --> 0:16:54.280 brand in the US right now thanks to F one 0:16:54.360 --> 0:16:58.200 fifty a Lightning and many of our other electric vehicles. 0:16:58.520 --> 0:17:01.200 And so there there are truck summers who who find 0:17:01.240 --> 0:17:04.840 that electric going electric is interesting. The last customer who 0:17:04.840 --> 0:17:07.400 would probably do that would be a super duty customer. 0:17:07.600 --> 0:17:10.520 As soon as you you know, most of our super 0:17:10.600 --> 0:17:14.640 duties are are towing heavy towing like ten thousand towns. 0:17:14.680 --> 0:17:16.960 And for a battery electric vehicle, it's not it's not 0:17:17.000 --> 0:17:20.359 a great vehicle. It's uh so you you wind up 0:17:20.480 --> 0:17:23.880 sacrificing range a lot, like cut your range in half 0:17:23.880 --> 0:17:26.640 with towing. So this is this is not the kind 0:17:26.680 --> 0:17:29.600 of vehicle that we would use for electric. We don't 0:17:29.600 --> 0:17:32.560 think the segments going electric anytime soon. So when you 0:17:32.600 --> 0:17:35.320 bring a new vehicle forward, like the super Duty, do 0:17:35.359 --> 0:17:36.960 you have to take into account in a way you 0:17:37.000 --> 0:17:39.240 didn't before the supply chain. I mean, do you actually 0:17:39.280 --> 0:17:42.280 engineer the product to some extent to anticipate a more 0:17:42.320 --> 0:17:44.280 resilient supply chain the way you have in the past. 0:17:44.640 --> 0:17:47.320 It is a great question because there's no more complex 0:17:47.440 --> 0:17:50.240 if you're number one in the super duty business. It's 0:17:50.280 --> 0:17:53.680 all about complexity in this business. You know, um bucket 0:17:53.720 --> 0:17:57.920 trucks and cabin chassisas and two fifties, four fifties, six fifties, 0:17:58.359 --> 0:18:01.480 very complex business, different acts or a geos, all sorts 0:18:01.480 --> 0:18:04.040 of different features. So the number one thing we can 0:18:04.119 --> 0:18:08.440 do to limit that risk is reduced complexity. And we've 0:18:08.440 --> 0:18:11.200 been driving down complexity as well as going to almost 0:18:12.080 --> 0:18:16.000 order to delivery. We don't really deliver vehicles off of 0:18:16.080 --> 0:18:19.119 inventory and the dealers anymore. We ship directly to the 0:18:19.200 --> 0:18:22.679 customer through the dealers. Now is specific orders so they 0:18:23.160 --> 0:18:26.120 order their own truck and so we can have visibility 0:18:26.240 --> 0:18:29.360 of the supply chain we need. But the number one 0:18:29.560 --> 0:18:32.720 leverage and de risking our supply chain is going to 0:18:32.840 --> 0:18:36.399 be reducing complexity. What about the financing part of the business, 0:18:36.400 --> 0:18:38.840 what about Ford motor credit? Do you anticipate some hit there? 0:18:39.560 --> 0:18:41.920 Ford credit is really important. I'm glad you asked that. 0:18:42.560 --> 0:18:46.320 Uh yes, uh, you know, obviously borrowing costs that are 0:18:46.400 --> 0:18:49.080 very important to a credit company. So many of our 0:18:49.119 --> 0:18:52.080 customers finance to forward credit are borrowing costs are going 0:18:52.160 --> 0:18:54.480 up a little bit not huge, but they are going 0:18:54.560 --> 0:18:58.199 up that cost more money um as well as use 0:18:58.320 --> 0:19:00.879 car values when when those use courts trade in like 0:19:00.920 --> 0:19:03.320 an at least we own those vehicles, we sell them. 0:19:03.359 --> 0:19:05.800 You know they're they're not worth what they were. We 0:19:05.800 --> 0:19:09.040 were very careful and reserves, but you know that that's 0:19:09.040 --> 0:19:12.920 a reality. So we are seeing headwinds for our finance company. 0:19:13.040 --> 0:19:15.320 Is not huge right now. We're still at like peat 0:19:15.400 --> 0:19:18.760 profitability for a finance company, but but they're definitely the 0:19:18.800 --> 0:19:20.800 inflation is hitting all of us in all parts of 0:19:20.800 --> 0:19:24.320 our business. And that was the CEO of Ford Voter Company, 0:19:24.400 --> 0:19:27.160 Jim Farley, speaking with Bloomberg's David Weston about the newly 0:19:27.160 --> 0:19:30.640 designed F series Super Duty. They spoke at the Churchill 0:19:30.640 --> 0:19:33.560 Downs Racetrack in Louisville, Kentucky, and you can catch the 0:19:33.600 --> 0:19:37.520 full conversation online at Bloomberg dot com or on the 0:19:37.520 --> 0:19:40.359 Bloomberg terminal. Quick check of Ford shares in the pre 0:19:40.440 --> 0:19:45.240 market there down a half percent. Futures are making a 0:19:45.280 --> 0:19:47.520 little bit of a turnaround right now. We've got SMP 0:19:47.720 --> 0:19:52.080 futures up three points, STOW futures up sixty five. NASTAC 0:19:52.119 --> 0:19:55.160 futures are still lower but well off session lows down 0:19:55.359 --> 0:19:58.160 thirty one points. The tenure Treasury is at three point 0:19:58.240 --> 0:20:02.840 eight nine percent. Stay with us. You're listening to Bloomberg 0:20:02.880 --> 0:20:09.040 day Break Bloomberg eleven three oh weather, sunshine, a high 0:20:09.080 --> 0:20:12.159 near seventy today. We'll get down to the mid fifties tonight, sunny, 0:20:12.240 --> 0:20:15.560 upper sixties tomorrow and Friday before we get the remnants 0:20:15.600 --> 0:20:26.000 of n Right now fifty four in Central Park, broadcasting 0:20:26.080 --> 0:20:29.800 live from the Bloomberg Interactive Broker's Studio in New York. 0:20:29.880 --> 0:20:34.560 Bloomberg E Loving Freedom to Washington, d C. Bloomberg to Boston, 0:20:34.680 --> 0:20:38.080 Bloomberg one O six one to San Francisco, Bloomberg NAM 0:20:38.160 --> 0:20:41.399 sixteen to the Country, Sirius XM Chado one nine and 0:20:41.480 --> 0:20:45.800 around the globe to Bloomberg Business and Bloomberg Radio dot Com. 0:20:45.840 --> 0:20:54.400 This is Bloomberg Daybreak six thirty on Wall Street. Good 0:20:54.400 --> 0:20:57.320 morning up, Nathan Hager and I'm Karen Moscow, and we're 0:20:57.359 --> 0:20:59.880 just about three hours away from the open of US trade. 0:21:00.000 --> 0:21:01.600 In time to the five things that you need to 0:21:01.600 --> 0:21:04.600 know to start your day. A first Hurricane Ian is 0:21:04.600 --> 0:21:08.119 now a dangerous Category four storm, taking him at Florida's 0:21:08.160 --> 0:21:12.240 Gulf coast and threatening to do serious damage. Bloomberg meteorologist 0:21:12.359 --> 0:21:15.639 Rob Carolyn is tracking the storm. Rob, Karen and Nathan. 0:21:15.720 --> 0:21:18.240 The eye of the hurricane very apparent on the radar 0:21:18.320 --> 0:21:20.399 out of the Key West area. We can see it 0:21:20.440 --> 0:21:23.760 working its way north northeast. It's paralleling the coast of 0:21:23.800 --> 0:21:26.520 western Florida. At some point today it will turn more 0:21:26.600 --> 0:21:29.000 towards the northeast and that allow it across the coast 0:21:29.359 --> 0:21:31.959