WEBVTT - Bloomberg Daybreak: November 7, 2022 - Hour 2 (Radio) 0:00:02.520 --> 0:00:05.920 Live from the Bloomberg Interactive Brokers studios. This is Bloomberg 0:00:05.960 --> 0:00:09.680 day Break for Monday, November seven two. Coming up the shower, 0:00:09.880 --> 0:00:13.080 Apple expects to produce at least three million fewer iPhone 0:00:13.119 --> 0:00:16.120 four teens than originally planned. Thousands of job cuts are 0:00:16.120 --> 0:00:19.080 reportedly on the way at Facebook, Pair and meta platforms. 0:00:19.200 --> 0:00:22.239 The investors grace for this week's key report on inflation, 0:00:22.400 --> 0:00:24.439 and we take you to Egypt, where a big climate 0:00:24.520 --> 0:00:27.840 change summit is underway. It's the final post for campaigning 0:00:27.880 --> 0:00:30.440 in New York's governor's race hand the mid terms. Plus 0:00:30.640 --> 0:00:33.680 the CDC warns of the surgeon, COVID flew and RSV 0:00:34.000 --> 0:00:37.000 on Michael bar more ahead, I'm done Stair Sharon sports 0:00:37.000 --> 0:00:39.120 big wins for the Jets and upset of the bills. 0:00:39.159 --> 0:00:42.920 The Rangers lost on mats re signed their closer. That's 0:00:42.960 --> 0:00:46.960 all straight ahead on Bloomberg day Break on Bloomberg eleven 0:00:47.000 --> 0:00:51.480 three O New York, Bloomberg one, Washington, d C, Bloomberg 0:00:51.479 --> 0:00:55.240 one O six one, Boston, Bloomberg nine six, San Francisco, 0:00:55.600 --> 0:00:58.880 Sirius x M one nineteen and around the world on 0:00:59.000 --> 0:01:08.160 Bloomberg Radio. Come and via the Bloomberg Business and good morning. 0:01:08.160 --> 0:01:11.039 I'm Karen Moscow, I'm Nathan Hegar. Bloomberg day Break brought 0:01:11.040 --> 0:01:12.840 to you by B and Y Melon's Pershing Learned by 0:01:12.880 --> 0:01:16.199 the world's most sophisticated wealth management and institutional firms rely 0:01:16.280 --> 0:01:19.840 on Pershing to help them improve profitability, create efficiency, attract talent, 0:01:19.920 --> 0:01:23.319 and manage risk at Pershing dot com. Well US futures 0:01:23.319 --> 0:01:25.760 are higher this morning six oh one on Wall Street, 0:01:25.760 --> 0:01:28.039 and we check the markets every fifteen minutes throughout the 0:01:28.040 --> 0:01:30.600 trading day on Bloomberg S and P Future is up 0:01:30.640 --> 0:01:33.640 twenty one points. DAL Futures up a hundred sixty two 0:01:33.680 --> 0:01:36.920 and ASDAG Future is up sixty two Tenure Treasury up 0:01:36.920 --> 0:01:40.080 four thirty seconds, yield four point one three percent, and 0:01:40.120 --> 0:01:42.440 they yield on the two year four point six eight 0:01:42.480 --> 0:01:46.040 percent Nathan Karen. The rise in futures follows Friday's rally 0:01:46.120 --> 0:01:48.639 on Wall Street, which saw the SNP five hundred snap 0:01:48.640 --> 0:01:51.280 of four day losing Street. Still, the index is down 0:01:51.320 --> 0:01:54.160 twenty one percent in twenty two and on track for 0:01:54.160 --> 0:01:56.880 its worst year in at least a decade. Alan Zaffron 0:01:56.960 --> 0:01:59.480 is founding partner in co CEO at i e Q Capital. 0:01:59.720 --> 0:02:02.760 What we are fearful of and if your barish is 0:02:02.800 --> 0:02:04.640 that the FED is only going to pivot when the 0:02:04.840 --> 0:02:07.280 p M is the Purchasing Manager Index, which is a 0:02:07.280 --> 0:02:10.760 broad measure of economic activity. If it were to really plummet, 0:02:11.280 --> 0:02:13.320 the FED would have no choice but to do so, 0:02:13.360 --> 0:02:17.480 and that probably only happens coincidentally with the labor markets 0:02:17.480 --> 0:02:20.120 starting to get out of control. I e Q Capital's 0:02:20.120 --> 0:02:22.440 Alan Zafferan says FED rate hikes will take six to 0:02:22.480 --> 0:02:25.440 twelve months to work their way through the economy. Well, Nathan, 0:02:25.480 --> 0:02:28.120 the attention this week turns to inflation, and let's take 0:02:28.160 --> 0:02:30.680 a look at the economic calendar, with Bloomberries Vinny Dell 0:02:30.800 --> 0:02:34.280 Judai's topping this week's list, the October Consumer Price and 0:02:34.440 --> 0:02:37.799 exceet for Thursday, and tracking the ever rising cost of 0:02:37.880 --> 0:02:42.000 living post pandemic. Economists the inflation running hot at about 0:02:42.000 --> 0:02:45.040 eight percent year over a year, keeping the federal reserve 0:02:45.160 --> 0:02:47.880 on the offense. Now wages are on the rise, but 0:02:47.960 --> 0:02:51.600 inflation is outstripping the games. Hence a lack of confidence 0:02:51.600 --> 0:02:55.400 in America's economy and the University of Michigan consumer sentiment 0:02:55.440 --> 0:02:58.600 and except once again to run their record low that's 0:02:58.560 --> 0:03:02.400 set for Friday, they eat judaic Is Bloomberg Daybreak. All right, Vinny, thanks, 0:03:02.400 --> 0:03:05.040 another busy week for earnings as well. It's gonna preview 0:03:05.080 --> 0:03:08.480 there from Bloomberg's Charlie Pellett. With about four hundred thirty 0:03:08.480 --> 0:03:13.040 companies in the SMP five hundred reporting so far have 0:03:13.240 --> 0:03:17.560 reported positive earning surprises, according to data compound by Bloomberg. 0:03:17.760 --> 0:03:22.320 Peter Oppenheimer is chief Global equity strategist at Goldman Sachs International. 0:03:24.040 --> 0:03:26.960 And not a disastrous serving season, but certainly not nearly 0:03:27.000 --> 0:03:29.560 as strong as we've seen previously. And the key thing 0:03:29.600 --> 0:03:32.080 that's happening, and we've been arguing this for some time, 0:03:32.520 --> 0:03:35.160 is that margins are starting to come under pressure as 0:03:35.160 --> 0:03:38.240 a result of these high input costs. Among the company's 0:03:38.280 --> 0:03:43.040 schedule to report this week, Activision Blizzard asked Roseneca, BioNTech, 0:03:43.240 --> 0:03:47.720 Occidental Petroleum, and Ribbean Automotive in New York. Charlie Pellet, 0:03:47.720 --> 0:03:50.520 Bloomberg Daybreak and Charlie, we're just getting earnings crossing the 0:03:50.520 --> 0:03:53.600 Bloomberg terminal from BioNTech, raising its forecast for the COVID 0:03:53.680 --> 0:03:56.680 vaccine itsels with Feiser, saying they've invoiced some three hundred 0:03:56.720 --> 0:03:59.960 million doses of an omicron adapted version as of mid October, 0:04:00.680 --> 0:04:03.000 and Nathan, we look to earnings in a long term now, 0:04:03.080 --> 0:04:06.280 Goldman sacks lowering his estimates for the SNP five hundred 0:04:06.320 --> 0:04:09.920 for each year till four. The bank strategists say margin 0:04:09.960 --> 0:04:13.600 contraction in the third quarters signals more pain ahead. Goldman 0:04:13.720 --> 0:04:16.080 is not changing its year end targets for the SNP 0:04:16.480 --> 0:04:18.440 still thinks the indext will drop another four and a 0:04:18.480 --> 0:04:21.440 half percent this year to thirty six hundred before rising 0:04:21.480 --> 0:04:26.040 to four thousand three. Meantime, Karen Morgan, Stanley's Michael Wilson 0:04:26.080 --> 0:04:28.600 says investors should stay bullish on equities ahead of this 0:04:28.640 --> 0:04:32.000 week's midterms. Wilson correctly predicted this year's slump in stocks. 0:04:32.040 --> 0:04:34.719 He says if Republicans win at least one chamber of Congress, 0:04:34.720 --> 0:04:37.039 it could provide a catalyst for lower bond fields and 0:04:37.200 --> 0:04:40.279 higher equity prices well. Turning to corporate news, now, Nathan, 0:04:40.360 --> 0:04:42.920 we're watching shares of Apple this morning. They're down one 0:04:43.000 --> 0:04:45.800 percent in early trading. The company expects to produce at 0:04:45.839 --> 0:04:50.040 least three million fewer iPhone fourteen handsets than originally planned 0:04:50.080 --> 0:04:53.719 this year. Bloombergy Daybreak Asia anchor Brian Curtis has more 0:04:53.800 --> 0:04:56.760 from Hong Kong. Bloomberg. Sources say the company and its 0:04:56.800 --> 0:05:00.120 suppliers now aimed to make about eighty seven million devices. 0:05:00.120 --> 0:05:02.760 That's down from ninety million. The reduction is due to 0:05:02.800 --> 0:05:06.599 softer demand for the iPhone fourteen and fourteen plus that 0:05:06.680 --> 0:05:10.040 adds to supply issues in places like Jung Cho, China. 0:05:10.360 --> 0:05:13.360 The plant there is under a COVID lockdown. You Know Kong, 0:05:13.440 --> 0:05:16.440 Brian Curtis, Bloomberg Daybreak, Brian thanks to continue to see 0:05:16.480 --> 0:05:19.480 job cuts in corporate America. Facebook Para meta Platforms will 0:05:19.520 --> 0:05:22.760 reportedly start laying off thousands of workers this week. According 0:05:22.800 --> 0:05:24.600 to The Wall Street Journal, the cuts could come as 0:05:24.640 --> 0:05:27.719 early as Wednesday. Met has been struggling with growing losses 0:05:27.760 --> 0:05:31.400 and investing heavily in its metaverse business. Meta shares, which 0:05:31.400 --> 0:05:35.040 are down sev this year, are up nearly four percent 0:05:35.120 --> 0:05:38.200 in early trading on the news. Well Nathan, Twitter brought 0:05:38.200 --> 0:05:40.560 the acts down hard less week on close to thirty 0:05:40.560 --> 0:05:43.479 seven hundred of its employees. Now it's asking dozens of 0:05:43.520 --> 0:05:46.320 them to come back. Sources tell us the company decided 0:05:46.360 --> 0:05:49.480 the employees where either fired by mistake or are too 0:05:49.720 --> 0:05:52.400 essential to the changes new owner Elon Musk wants to 0:05:52.440 --> 0:05:56.520 make one of those changes, adding verification checkmarks for subscribers 0:05:56.680 --> 0:06:00.120 to Twitter's monthly blue service that's being delayed till Wednesday 0:06:00.160 --> 0:06:03.120 to avoid mid term election chaos. Well, the world's focus 0:06:03.160 --> 0:06:04.600 for the next couple of weeks, Karen will be on 0:06:04.720 --> 0:06:07.480 the health of the planet. The cop twenty seven summit 0:06:07.600 --> 0:06:10.920 is underway in Egypt. The United Nations Annual Climate change 0:06:10.920 --> 0:06:14.799 event is beginning with discussions on reparations or compensating poorer 0:06:14.880 --> 0:06:18.080 nations for the damage caused by emissions produced elsewhere. We 0:06:18.120 --> 0:06:21.000 get more from Bloomberg's use of Kamal Eldin in Charmel Shake. 0:06:21.480 --> 0:06:24.520 We've got over one hundred heads of state to hund 0:06:24.520 --> 0:06:27.680 delegations from all across the world, and they've set apart 0:06:27.680 --> 0:06:29.920 a little bit lower. I would say they admit that 0:06:30.160 --> 0:06:32.200 because of some of the risk everything of the Ukraine 0:06:32.200 --> 0:06:34.680 War to be ongoing, to your political spat between China 0:06:34.720 --> 0:06:37.679 and the US, it's gonna be harder to get things going. 0:06:38.279 --> 0:06:41.520 But nonetheless they want to show some results and they 0:06:41.600 --> 0:06:45.000 are ready to get contraction on adding a little bit 0:06:45.040 --> 0:06:47.000 of a controversial items to the attenda, the loss and 0:06:47.120 --> 0:06:51.359 Damage items that this is related to unchecked crossial fuel 0:06:51.520 --> 0:06:56.760 use that cause economic destruction in disproportioned ways. Bloombergs use 0:06:56.760 --> 0:06:59.359 of kamal Eldin reports. The leaders of Germany, France, and 0:06:59.400 --> 0:07:02.560 the UK are appearing at the start of copy. US 0:07:02.640 --> 0:07:05.839 President Joe Biden and Brazil's President elect Louis and Nacio 0:07:05.920 --> 0:07:08.520 Lula da Silva are due to appear later on, and 0:07:08.640 --> 0:07:11.440 futures are higher this morning. Nathan SMP future is up 0:07:11.480 --> 0:07:14.640 twenty four points to down futures of eighty three, nasday 0:07:14.760 --> 0:07:23.200 futures of seventy seven. And this is Bloomberg. Thanks sharing 0:07:23.240 --> 0:07:25.240 at six oh seven on Wall Street, sixty seven degrees 0:07:25.280 --> 0:07:27.360 in Central Park. Gotta crash on the northbound hutch By 0:07:27.400 --> 0:07:30.320 exit eleven. More coming up in traffic. First Michael Barr 0:07:30.400 --> 0:07:31.880 with what else is going on in New York and 0:07:31.960 --> 0:07:34.080 around the world. Michael, thank you very much. Nathan. It 0:07:34.360 --> 0:07:38.800 was the final weekend of campaigning before Tuesday's mid term elections. 0:07:39.160 --> 0:07:42.520 President Joe Biden campaign for New York Governor Kavie Hokel 0:07:42.840 --> 0:07:46.000 and a rally in Yonkers Sunday. Biden is hoping to 0:07:46.000 --> 0:07:49.480 give the incumbent the last minute boost against Republican challenger 0:07:49.560 --> 0:07:52.640 Lee's Eldon Poles show the race between the two narrowing. 0:07:53.120 --> 0:07:57.080 Biden criticized former President Trump and the Republican Party's record 0:07:57.120 --> 0:08:00.200 on the economy. What's going to happen the next couple 0:08:00.360 --> 0:08:03.160 years is going to have more to do with what 0:08:03.240 --> 0:08:06.400 this country looks like twenty years from now than anything else. 0:08:06.680 --> 0:08:10.840 Congressman Zelden campaign and a rally near Rochester, promising if 0:08:10.880 --> 0:08:14.000 he's elected governor, he's going to crack down on crime 0:08:14.080 --> 0:08:17.400 and those state employees in charge of fighting it. We 0:08:17.480 --> 0:08:21.120 are going to clear a climb emergency here in the 0:08:21.160 --> 0:08:25.320 state of New York. Meanwhile, former President Trump urged Florida 0:08:25.400 --> 0:08:29.680 voters to support Republican candidates in Tuesday's mid term elections. 0:08:29.920 --> 0:08:32.160 This is a year we are going to take back 0:08:32.240 --> 0:08:35.000 the House. We're going to take back the Senate. We're 0:08:35.000 --> 0:08:40.120 going to take back America. We're going to take Trump 0:08:40.240 --> 0:08:43.320 spoke in the rally in Miami with Florida Senators Marco 0:08:43.440 --> 0:08:46.920 Rubio and Rick Scott, a former director of the f 0:08:47.000 --> 0:08:50.200 d A, is concerned that the US is not prepared 0:08:50.280 --> 0:08:53.600 for the current virus season. Bloomberg said Baxter as the 0:08:53.640 --> 0:08:56.920 story the US has Center in cold flew RSV and 0:08:57.000 --> 0:09:00.600 COVID season and former director Scott gott lab On CBS 0:09:00.679 --> 0:09:03.600 has heard here on Bloomberg says some past mistakes are 0:09:03.600 --> 0:09:05.720 getting in the way of new policies. We know wearing 0:09:05.720 --> 0:09:07.560 a mask if you have the flu rs V when 0:09:07.600 --> 0:09:10.840 you go out is effective at preventing forward transmission. Nobody 0:09:10.840 --> 0:09:12.440 wants to say that. So I think that there's a 0:09:12.440 --> 0:09:14.920 lot of reluctance now, in part because of the failures 0:09:14.920 --> 0:09:17.079 of public health messaging during the pandemic and things we 0:09:17.200 --> 0:09:19.480 got wrong and the backlash toys. So we don't have 0:09:19.520 --> 0:09:21.720 a good solution for what we're entering right now. Godlee 0:09:21.840 --> 0:09:24.360 says mistakes should have been made during COVID should not 0:09:24.400 --> 0:09:28.080 affect medical policy going forward. In San Francisco, I'm at 0:09:28.080 --> 0:09:31.360 Baxter Bloomberg. Gay break authorities continue to investigate the New 0:09:31.440 --> 0:09:34.080 York City high rise fire over the weekend and injured 0:09:34.120 --> 0:09:36.640 over three dozen people and was traced to a faulty 0:09:36.800 --> 0:09:39.800 lithium ion battery. It is the latest and a fast 0:09:39.880 --> 0:09:43.760 growing series of battery blazes that have fire officials concerned. 0:09:44.000 --> 0:09:47.760 The fire spurred a dramatic and rare rope rescue. Twenty 0:09:47.760 --> 0:09:51.319 stories above Manhattan's East fifty second Street, a few blocks 0:09:51.320 --> 0:09:54.520 from the u N headquarters. Global News twenty four hours 0:09:54.520 --> 0:09:57.560 a day on air and on Bloomberg Quicktake, powered by 0:09:57.600 --> 0:10:01.840 more than journalists and analysts more than twenty countries. Michael Barren, 0:10:01.920 --> 0:10:09.080 this is Bloomberg Nathin. Thank you, Michael. Almost six ten 0:10:09.160 --> 0:10:11.120 on Wall Street. Time for the Bloomberg Sports Update, brought 0:10:11.120 --> 0:10:13.280 to you by twice State Daddy. Here's John sansh Our, 0:10:13.360 --> 0:10:15.920 Thanks Days and the Jets of it underdogs almost every week. 0:10:15.960 --> 0:10:19.079 They were eleven point underdogs that met Life Buffalo came 0:10:19.120 --> 0:10:21.480 in an a f C best six and one three 0:10:21.840 --> 0:10:24.160 three wins by at least three touchdowns, but the Jets 0:10:24.520 --> 0:10:27.480 sat Josh Allen five times, intercept with him twice and 0:10:27.520 --> 0:10:31.520 twice got themselves into the end takes the snout harder 0:10:31.600 --> 0:10:39.679 run up the middle of the five. Jetlist motions Herson goal, 0:10:39.800 --> 0:10:43.000 the second Bactus Crozack Wilson screen, ro Cobbinson at the 0:10:43.120 --> 0:10:49.199 ten half the five. He's across the goal touch the 0:10:49.520 --> 0:10:51.800 ESPN New York that calls the game was tied when 0:10:51.800 --> 0:10:54.760 the Jets won on a thirteen play eighties six yard 0:10:54.840 --> 0:10:57.480 drive ended with a Greg zir Wine go ahead field goal. 0:10:57.520 --> 0:11:00.400 They upset the Bills twenty and seventeen, only a half 0:11:00.480 --> 0:11:02.600 game behind Buffalo. The game last night to a FC 0:11:02.720 --> 0:11:06.040 Division leaders and went to overtime. Kansas City beat Tennessee. 0:11:06.040 --> 0:11:09.440 Patrick Mahomes through the ball sixty eight times. Tom Brady 0:11:09.480 --> 0:11:12.160 threw at fifty eight, the last one of teen passed. 0:11:12.160 --> 0:11:13.760 Tamba Bay has only touched down of the day. They 0:11:13.760 --> 0:11:16.079 beat the Rams in the battle of the last two 0:11:16.160 --> 0:11:18.880 Super Bowl winners, both of whom are struggling this year 0:11:18.920 --> 0:11:21.960 and Green Bay really struggling. Lost with the Jets and 0:11:22.040 --> 0:11:26.080 Giants just lost to lowly Detroit. Aaron Rodgers intercepted three times. 0:11:26.080 --> 0:11:28.559 It's the Packard's fifth loss in a row. The sound 0:11:28.640 --> 0:11:31.679 of Timmy Trumpet playing Narco continue to be heard at 0:11:31.679 --> 0:11:33.480 City Fields for the years to come. The Mets have 0:11:33.600 --> 0:11:36.480 locked up all star closer Edwin Diaz, who was a 0:11:36.520 --> 0:11:39.480 free agent five years hundred two million, most ever for 0:11:39.520 --> 0:11:42.640 a reliever. The Nets laid down six requirements that Tyrie 0:11:42.679 --> 0:11:45.920 Irving must meet before they consider lifting his suspension. The 0:11:46.080 --> 0:11:49.160 Rangers lost to Detroit three two and overtime. John Stashward 0:11:49.200 --> 0:11:52.440 Bloomberg Sports Nathan thank you, John SMP futures right now 0:11:52.600 --> 0:11:55.960 twenty three points, Stown futures up an eighty Nastact futures 0:11:55.960 --> 0:11:58.920 are higher by seventy two points, and the tenure Treasury's 0:11:58.960 --> 0:12:01.079 up four thirty seconds for a yield a four point 0:12:01.120 --> 0:12:08.200 one four percent. This is Bloomberg. Bloomberg Sports was brought 0:12:08.240 --> 0:12:10.320 to you by Audie. Don't let someone else drive off 0:12:10.320 --> 0:12:12.880 in the autie model you've always wanted. Visit your local 0:12:12.880 --> 0:12:14.880 tri state autie dealer to get behind the wheel of 0:12:14.880 --> 0:12:22.600 yours today, or visit autie Offers dot com for more information, markets, 0:12:22.679 --> 0:12:25.800 headlines and breaking news twenty four hours a day at 0:12:25.800 --> 0:12:29.800 Bloomberg dot com, the Bloomberg Business Out and at Bloomberg Victaque. 0:12:30.000 --> 0:12:39.040 This is a Bloomberg Business Flash and I'm Karin Moscow 0:12:39.080 --> 0:12:41.040 and us dot in Next Future is on the rise 0:12:41.160 --> 0:12:44.640 this morning as some investors that a period of disinflation 0:12:44.679 --> 0:12:47.280 has already begun and the midterm election results will be 0:12:47.320 --> 0:12:50.439 favorable to markets. We checked the markets every fifteen minutes 0:12:50.480 --> 0:12:53.640 throughout the trading day. On Bloomberg, SMP Future is up 0:12:53.640 --> 0:12:56.079 twenty foinds Now futures have a hundred sixty three and 0:12:56.160 --> 0:12:59.200 nasdack Future is up sixty three the decks in Germany's 0:12:59.240 --> 0:13:01.920 up about nine ten of upper cent. Ten year treasury 0:13:01.960 --> 0:13:04.440 up four thirty seconds, held four point one four percent. 0:13:04.480 --> 0:13:07.880 They yield on the two year four point six eight percent. Nine. Next, 0:13:07.920 --> 0:13:10.920 Scrude oil is of less than a tenth of upper cent, 0:13:10.960 --> 0:13:13.200 up six cents at ninety two dollars sixty seven cents, 0:13:13.240 --> 0:13:15.800 and barrel comics gold up two tens percent or three 0:13:15.840 --> 0:13:18.320 dollars ten cents at sixty and seventy nine seventy an 0:13:18.360 --> 0:13:21.959 ounce the euro point nine you against the dollar British 0:13:22.000 --> 0:13:24.400 found one point one four or five seven and again 0:13:24.440 --> 0:13:27.520 one forty six point six nine, and bitcoin is down 0:13:27.520 --> 0:13:30.440 one point eight percent at twenty thousand and seven hundred 0:13:30.440 --> 0:13:34.040 fifty dollars and again. Biotech bi on Tech raising its 0:13:34.040 --> 0:13:37.000 forecast with the COVID nineteen vaccine it sales, with Fiser 0:13:37.360 --> 0:13:39.839 saying that the partners have invoiced some three hundred million 0:13:39.880 --> 0:13:42.720 doses of an omicron adapted version of the shot as 0:13:42.720 --> 0:13:45.640 of mid October. As a Bloomberg business flash, now here's 0:13:45.679 --> 0:13:48.200 Michael Barr with more on what's going on around the world. 0:13:48.320 --> 0:13:51.920 Michael Karen, thank you very much. Election Day is tomorrow, 0:13:51.960 --> 0:13:56.080 but already more than forty million Americans have cast early ballots. 0:13:56.400 --> 0:14:00.360 Republicans are optimistic about winning enough seats to retake troll 0:14:00.440 --> 0:14:03.880 of both the House and the Senate, while Democrats insist 0:14:03.920 --> 0:14:06.720 they are poised for a better night than many expect. 0:14:07.240 --> 0:14:10.720 The COP twenty seven u N Climate talks began in Egypt, 0:14:10.960 --> 0:14:13.560 with a deal to discuss how rich countries can help 0:14:13.600 --> 0:14:16.840 pay for the damage is caused by global warming. Elsewhere, 0:14:17.200 --> 0:14:20.960 recent climate disasters, such as the floods in Pakistan have 0:14:21.120 --> 0:14:24.040 put the issue back into focus. In the NFL, the 0:14:24.120 --> 0:14:28.200 Jets upset the Bills twenty seventeen, The Patriots won, the 0:14:28.200 --> 0:14:31.720 Commanders lost. The Ravens play the Saints tonight. In the NHL, 0:14:31.800 --> 0:14:34.480 the Rangers lost in overtime to the Red Wings three two. 0:14:34.920 --> 0:14:38.360 In the NBA, the Wizards lost. Global news twenty four 0:14:38.400 --> 0:14:42.280 hours a day on air and on Bloomberg Quicktake, powered 0:14:42.280 --> 0:14:45.240 by more than twenty seven hundred journalists and analysts more 0:14:45.240 --> 0:14:47.680 than a hundred twenty countries. How Michael Barr and this 0:14:47.760 --> 0:14:49.960 is Bloomberg. Nathan, all right, Michael, thank you for coming 0:14:50.040 --> 0:14:51.640 up to six twenty on Wall Street Life from the 0:14:51.680 --> 0:14:54.880 Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We want 0:14:54.880 --> 0:14:57.400 to take a closer focus now on those COP twenty 0:14:57.400 --> 0:15:00.800 seven climate tucks underway in Egypt. Bloomberg use of Kamal L. 0:15:00.840 --> 0:15:04.080 Dean is part of our team of reporters and correspondence 0:15:04.320 --> 0:15:07.960 covering the discussions from Charmel, Shake and useus with US 0:15:08.080 --> 0:15:10.440 Live now, Good morning, use of thanks for being here. 0:15:10.640 --> 0:15:13.520 As Michael mentioned, it did begin with a deal to 0:15:13.840 --> 0:15:18.960 discuss reparations for climate damage. But this is just a 0:15:19.080 --> 0:15:21.920 deal on actually talking about it. That's that's kind of 0:15:21.920 --> 0:15:27.200 what we're looking at the moment right correct. So basically 0:15:27.400 --> 0:15:29.800 you've got over one d heads of state here to 0:15:29.840 --> 0:15:33.600 one of the the delegations, forty five thousand ecodited people. I've 0:15:33.600 --> 0:15:36.480 found a bit of shade in a midsummer day here 0:15:36.480 --> 0:15:39.440 in Charmer shaky. It's far harder than it would usually be, 0:15:40.240 --> 0:15:42.760 and yes we did get a bit of a diplomatic breakthrough. 0:15:43.360 --> 0:15:46.760 It's been added to the agenda the loss and damage component, 0:15:47.120 --> 0:15:49.760 which is the reparations, but it isn't because it takes 0:15:49.760 --> 0:15:54.760 out the liability component, but assures a level of coordination 0:15:55.320 --> 0:16:00.000 and integration between developed and developing countries around moving forward 0:16:00.040 --> 0:16:02.760 with with the Climate agenda. So it was a positive 0:16:02.760 --> 0:16:05.000 note to start, but people here on the ground tell 0:16:05.040 --> 0:16:07.200 me there's a long way to go until we can 0:16:07.200 --> 0:16:10.560 call the summit a success. Well, what kind of progress 0:16:10.600 --> 0:16:12.800 are we looking for from this summit? Use if it 0:16:12.840 --> 0:16:16.960 seems like every year when the COP gathering gets under way, 0:16:17.680 --> 0:16:22.120 the benchmarks for success seemed to get lowered and lowered 0:16:22.160 --> 0:16:25.960 with each passing year. I think he hit the nail 0:16:26.000 --> 0:16:27.880 on the head, and that's why the Egyptian hosts here 0:16:27.880 --> 0:16:31.000 are labeling this the implementation COP. So he had the 0:16:31.080 --> 0:16:34.280 COP of lofty ambitions, the COP twenty six Glasgow, and 0:16:34.360 --> 0:16:36.320 now they just want to, you know, make a little 0:16:36.320 --> 0:16:38.360 bit of tangible progress. And that's why it was so 0:16:38.400 --> 0:16:41.240 important that we didn't get that addition to the agenda 0:16:41.560 --> 0:16:43.440 in terms of what else they can do well, in 0:16:43.520 --> 0:16:46.720 many ways, live up to existing promises like the Copenhagen Pledge, 0:16:47.080 --> 0:16:50.160 which is a hundred billion dollars annually, need to help 0:16:50.360 --> 0:16:54.920 with adaptation and mitigation from developed countries to developing countries, 0:16:55.200 --> 0:16:58.640 and just firming up the framework for discussions. You have 0:16:58.760 --> 0:17:02.320 no idea how complex this process is. Once you sit 0:17:02.360 --> 0:17:04.800 in one of these hauled I mean you're going into 0:17:04.840 --> 0:17:08.919 the far corners of U N bureaucracy. That's kind of 0:17:08.960 --> 0:17:12.200 the layers that need to be considered, and the amount 0:17:12.280 --> 0:17:16.480 of sort of diplomatic uh, I don't know, maneuvering that 0:17:16.560 --> 0:17:19.640 needs to be done. And all this is coming, of course, 0:17:19.640 --> 0:17:21.960 at the backdrop of the war in Ukraine and the 0:17:22.000 --> 0:17:25.720 potential for an energy crunch coming this winter and a 0:17:25.880 --> 0:17:31.959 spike in demand with global commodities potentially being disrupted dramatically 0:17:32.640 --> 0:17:36.480 by the war unfolding. How is that affecting what we 0:17:36.600 --> 0:17:41.160 get from these talks? It affected very much. I mean 0:17:41.200 --> 0:17:43.879 they're not beaning around the bush here. So you know, 0:17:43.920 --> 0:17:46.960 the Ukraine war, You've got the geopolitical file up between 0:17:47.000 --> 0:17:50.359 the US and China. All these things are weighing on 0:17:51.000 --> 0:17:53.600 the relative optimism that you would normally have at an 0:17:53.640 --> 0:17:56.400 event like this. And even here in Egypt, were Egyptians 0:17:56.400 --> 0:18:00.040 are feeling climate change, there's a question of financing it. 0:18:00.520 --> 0:18:04.200 So you're already dealing with double digit inflation, your local 0:18:04.240 --> 0:18:08.280 currency is down fifty over the last year. Who's going 0:18:08.320 --> 0:18:10.879 to pay for the move to cleaner energy? Right if 0:18:10.880 --> 0:18:13.480 you're trying to make ends meet? Not the end of 0:18:13.520 --> 0:18:15.000 the months we're talking about the end of the day. 0:18:15.240 --> 0:18:16.600 So those are some of the core issues that are 0:18:16.600 --> 0:18:19.199 going to be discussed with the delegations from over two 0:18:19.240 --> 0:18:22.119 hundred people of the course of two weeks, so a 0:18:22.160 --> 0:18:24.840 lot to cut through. We'll see how far we get 0:18:24.840 --> 0:18:26.199 with all of this. And I know a lot of 0:18:26.240 --> 0:18:29.040 European leaders are there now. We're expecting President Biden to 0:18:29.160 --> 0:18:32.399 arrive after the mid term elections have come and gone. 0:18:32.640 --> 0:18:36.080 What are the expectations once President Biden comes in when 0:18:36.080 --> 0:18:38.639 we could potentially see a shift in the balance of 0:18:38.680 --> 0:18:43.960 power in Washington and the corresponding changes to the kinds 0:18:44.000 --> 0:18:46.760 of commitments that potentially the US could make at a 0:18:46.800 --> 0:18:48.679 summit like this. You've only got about a minute left here, 0:18:48.760 --> 0:18:52.360 use I mean, the French President of Manuel Macros said 0:18:52.400 --> 0:18:55.200 that the US and China need to pay their share 0:18:55.240 --> 0:18:58.160 to help poor nations deal with climate change. They need 0:18:58.160 --> 0:19:00.400 the U S and China to step up as let's 0:19:00.320 --> 0:19:03.360 just tin accounts of emissions. I think there's more hope 0:19:03.440 --> 0:19:05.960 that the US can take a leadership role, and with 0:19:06.000 --> 0:19:08.320 the mid terms out of the way, it allows this 0:19:08.440 --> 0:19:12.640 administration in Washington to really focus on what has been 0:19:13.040 --> 0:19:15.639 one of its top priorities since it came into office, 0:19:15.960 --> 0:19:18.480 and that is something that is giving people here underground 0:19:18.480 --> 0:19:21.200 a lot of confidence that much more can be done 0:19:21.240 --> 0:19:24.240 with US leadership. Thanks for your time use of looking 0:19:24.280 --> 0:19:26.160 forward to your coverage over the next couple of weeks 0:19:26.200 --> 0:19:28.880 here from Charmel Shake Bloomberg's use of Kamal L Dean 0:19:29.240 --> 0:19:32.440 with us this morning, as the Copy seven summit has 0:19:32.600 --> 0:19:35.359 just gotten underway, and we will have full coverage for 0:19:35.440 --> 0:19:38.159 you throughout the next couple of weeks here as the 0:19:38.200 --> 0:19:41.280 summit unfolds. Looking ahead to the market open on Wall 0:19:41.320 --> 0:19:44.399 Street this morning, futures are pointing a little bit higher. 0:19:44.800 --> 0:19:47.399 SMP futures are up nineteen points right now Down futures 0:19:47.480 --> 0:19:49.760 up a hundred fifty seven, and Nasdaq futures are higher 0:19:50.000 --> 0:19:52.920 by fifty seven points ten. Your Treasury is up three 0:19:52.960 --> 0:19:55.800 thirty seconds the old four point one percent. Look at 0:19:55.840 --> 0:19:59.040 the commodities market and I'm ex screwed down two tenths percent. 0:19:59.119 --> 0:20:02.840 Ninety two dollars forty three cents a barrel. This is 0:20:02.880 --> 0:20:09.640 Bloomberg Bloomberg eleventh three oh weather a brief shower this morning, 0:20:09.680 --> 0:20:12.320 otherwise clearing, breezy and mild today. Highs in the mid 0:20:12.400 --> 0:20:15.639 seventies will be back in the mid fifties for highs 0:20:15.760 --> 0:20:18.480 on Election Day tomorrow and Wednesday as well. Right now 0:20:18.560 --> 0:20:24.719 sixty eight in Central Park, broadcasting live from the Bloomberg 0:20:24.800 --> 0:20:29.240 Interactive Broker's studio in New York, Bloomberg Living Free to Washington, 0:20:29.320 --> 0:20:33.200 d C, Bloomberg N one to Boston Bloomberg one six 0:20:33.280 --> 0:20:36.040 one to San Francisco Bloomberg, and I'm sixty to the 0:20:36.080 --> 0:20:39.600 country Sirius XM chto one nine and around the globe 0:20:39.640 --> 0:20:43.280 the Bloomberg Business apt in Bloomberg Radio dot com. This 0:20:43.600 --> 0:20:52.479 is Bloomberg Daybreak. It's six thirty on Wall Street. Good 0:20:52.520 --> 0:20:55.240 morning of Nathan Hagar and I'm Karen Moscow and we 0:20:55.280 --> 0:20:57.520 are just about three hours away from the open of 0:20:57.640 --> 0:20:59.920 US trading. Time to the five things you need to 0:21:00.040 --> 0:21:02.639 notice start your day. Brought to you by i b 0:21:02.840 --> 0:21:06.600 KR Investment Advisors switched to Interactive Brokers for lowest cost 0:21:06.680 --> 0:21:10.760 global trading and turn key custody solutions, no ticket charges 0:21:10.760 --> 0:21:13.560 and no conflicts of your interests at ibkr dot com 0:21:13.640 --> 0:21:17.520 slash r i A First. Investors are keeping a close 0:21:17.520 --> 0:21:21.040 eye on key economic data. The October Consumer Price indexes 0:21:21.080 --> 0:21:24.880 out on Thursday, and University of Michigan Consumers Sentiment Index 0:21:25.000 --> 0:21:28.800 out Friday. Paiden and Regal Chief US economist Jeffrey Cleveland 0:21:28.880 --> 0:21:32.320 says jobs data from Friday suggests the Feds still in 0:21:32.359 --> 0:21:35.280 the thick of its inflation battle. The wage growth data 0:21:35.320 --> 0:21:37.760 has slowed maybe a little bit a point four a month, 0:21:37.760 --> 0:21:40.720 and month is still pretty strong. We're hanging out around 0:21:40.720 --> 0:21:43.760 five percent year on year wage growth, and that is 0:21:43.800 --> 0:21:47.040 not consistent, in my view, with two percent inflation. I 0:21:47.080 --> 0:21:48.520 think it's far too soon for the Fed to say 0:21:48.560 --> 0:21:51.159 they're putting the brakes on here and paid in regals. 0:21:51.200 --> 0:21:53.920