WEBVTT - Bloomberg Daybreak: September 20, 2022 - Hour 2 (Radio) 0:00:02.560 --> 0:00:05.880 My from the Bloomberg Interacted Burger Studios is Bloomberg day 0:00:05.880 --> 0:00:09.319 Break for two day September twenty two. Coming up this hour, 0:00:09.640 --> 0:00:12.000 the Fed kicks off it's two day meeting with another 0:00:12.080 --> 0:00:14.920 seventy five basis point rate hike on the table. Treasury 0:00:14.920 --> 0:00:17.280 two year yields are poised to crack about four percent 0:00:17.360 --> 0:00:20.160 for the first time in fifteen years. British Prime Minister 0:00:20.200 --> 0:00:23.200 Liz trust is pessimistic about a trade deal with the US, 0:00:23.440 --> 0:00:26.520 and four chairs drop on concerns of higher supply costs. 0:00:26.760 --> 0:00:29.080 New York City is looking at legal action involving the 0:00:29.120 --> 0:00:32.840 influx of migrants from Texas. Plus Hurricane Fiona strengthens after 0:00:32.880 --> 0:00:36.360 devastating Puerto Rico. I'm Michael bar More Ahead, I'm John 0:00:36.360 --> 0:00:38.960 Stashower and sports, The Mets clifts the playoff Berth, Max 0:00:38.960 --> 0:00:41.320 scherz Or pitts them to victory, and Milwaukee Aaron Judge 0:00:41.360 --> 0:00:45.120 The Yankees Tonight host Picksberg. That's all straight ahead on 0:00:45.280 --> 0:00:51.040 Bloomberg day Break on Bloomberg eleven, Trio, New York, Bloomberg one, Washington, 0:00:51.159 --> 0:00:55.000 d C, Bloomberg one six one, Boston, Bloomberg nine six, 0:00:55.280 --> 0:00:59.640 San Francisco Sirius XM one nineteen and around the world 0:00:59.720 --> 0:01:03.080 on Bloomberg Radio dot com and via the Bloomberg Business 0:01:03.120 --> 0:01:10.399 at Good Morning, I'm Nathan Hagar and I'm Karen Moscow. 0:01:10.560 --> 0:01:14.120 US documentis futures are lower this morning, and we checked 0:01:14.120 --> 0:01:17.120 the markets every fifteen minutes throughout the trading day on Bloomberg. 0:01:17.200 --> 0:01:18.759 Yes we come up to six oh one on Wall 0:01:18.800 --> 0:01:22.399 Street SMP futures down about eighteen points now, futures down 0:01:22.440 --> 0:01:25.319 a hundred thirteen nast day futures down at sixty five, 0:01:25.400 --> 0:01:27.959 and the decks in Germany's down about eight tens of percent. 0:01:28.319 --> 0:01:31.039 Ten year treasury down eleven thirty seconds, YELD three point 0:01:31.080 --> 0:01:33.480 five three percent, and they yield on the two year 0:01:33.600 --> 0:01:37.400 three point nine six percent. Nathan Karen, the SMP five 0:01:37.480 --> 0:01:40.080 hundred stamped a two day losing street yesterday, but we 0:01:40.120 --> 0:01:43.200 are watching futures fall this morning and ten year treasury 0:01:43.280 --> 0:01:46.560 yields are hovering above three and a half percent. Yields 0:01:46.600 --> 0:01:49.360 on the two year pois to crack four percent for 0:01:49.360 --> 0:01:52.360 the first time since two thousand seven. Jake Jolly is 0:01:52.360 --> 0:01:55.200 a senior investment strategistic bing y Melon. I think it's 0:01:55.200 --> 0:01:58.040 going to be pretty choppy this week, right, we're all 0:01:58.080 --> 0:02:02.200 waiting for Wednesday. We're all very attentive to you know, 0:02:02.240 --> 0:02:04.480 what's going to be coming. Most notably, I think in 0:02:04.480 --> 0:02:07.120 the summary of economic projections. I think everybody feels like 0:02:07.160 --> 0:02:09.839 a FED watcher these days. But until then, I think 0:02:09.840 --> 0:02:11.720 it's going to be a little bit choppy. Well, the 0:02:11.760 --> 0:02:14.560 FED meeting mentioned by b n Y Melons Jay Jolly 0:02:14.720 --> 0:02:17.959 kicks off today. According to economist survey by Bloomberg, this 0:02:18.080 --> 0:02:20.600 central Bank will high rates by three quarters of a 0:02:20.680 --> 0:02:24.560 percentage point for the third straight time. Lori Calvacinos, head 0:02:24.560 --> 0:02:29.600 of US Equity Strategy at RBC Capital Markets, Look, they're 0:02:29.600 --> 0:02:32.000 still in the seventy daysis point camp that they certainly 0:02:32.040 --> 0:02:34.120 said that a hundred is on the table, and it 0:02:34.160 --> 0:02:36.359 does seem like there's some pains to make that messaging 0:02:36.400 --> 0:02:39.200 out there. It was a brutal day last week after 0:02:39.240 --> 0:02:41.799 that CPI print, we had a five percent drop in 0:02:41.880 --> 0:02:44.320 the mask back. So I do think that a lot 0:02:44.360 --> 0:02:46.120 is baked in at this point in time, and I 0:02:46.160 --> 0:02:48.880 think what the market continues to struggle with is not 0:02:49.000 --> 0:02:52.600 just the aggressive action from the FED, but there economic ramification. 0:02:52.919 --> 0:02:56.560 And Lori Calvasin at RBC says more companies could downgrade 0:02:56.560 --> 0:02:59.240 their earnings forecasts, and that could lead to more uncertainty 0:02:59.320 --> 0:03:01.560 for the market. Man, it's not just the Fed boosting 0:03:01.600 --> 0:03:03.920 rates this week, Karen. We got a surprising Europe this 0:03:04.000 --> 0:03:07.040 morning when Sweden Central Bank raised rates a larger than 0:03:07.080 --> 0:03:10.359 expected hundred basis points. The bank also said rates will 0:03:10.400 --> 0:03:13.800 continue to go up over the next six months. In Japan, Nathan, 0:03:13.840 --> 0:03:16.839 inflation has accelerated to the fastest pace in more than 0:03:16.919 --> 0:03:19.920 three decades. That's creating headaches for the Bank of Japan. 0:03:20.280 --> 0:03:22.560 It will try to explain why it needs to continue 0:03:22.560 --> 0:03:26.200 with monetary stimulus when inflation is above its two percent goal. 0:03:26.520 --> 0:03:29.960 Consumer prices excluding fresh food rose at an annual rate 0:03:30.000 --> 0:03:33.239 of two point eight percent in August. Well meantime, across Asia, 0:03:33.360 --> 0:03:36.440 Karen stocks snapped a five day losing streak. Hopes that 0:03:36.560 --> 0:03:39.920 Hong Kong will move east or to East COVID restrictions 0:03:39.920 --> 0:03:42.040 helped the boost sentiment. Let's get the recap down from 0:03:42.080 --> 0:03:45.760 Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good morning, Nathan, 0:03:45.800 --> 0:03:47.920 and Karen Indexes in Hong Kong, We're up more than 0:03:47.960 --> 0:03:50.600 one one key gauge climbing from the edge of a 0:03:50.680 --> 0:03:53.440 bear market, as Hong Kong's chief executive said, the city 0:03:53.480 --> 0:03:56.760 wants to relax COVID travel cubs often nearly three years 0:03:56.800 --> 0:04:00.160 of restrictions on weekend to spot. The pbo A c 0:04:00.320 --> 0:04:03.080 setting a stronger than expected fix for a nineteenth day, 0:04:03.320 --> 0:04:07.640 and Chinese lenders kept their loan prime rates unchanged in Singapore. 0:04:07.720 --> 0:04:11.040 Juliet Sally Bloomberg Daybreak, Right, Julia, thank you. We turned 0:04:11.040 --> 0:04:13.720 to geopolitics now, and there's word this morning that a 0:04:13.760 --> 0:04:17.080 trade deal between the UK and the US it's not 0:04:17.200 --> 0:04:19.760 likely anytime soon. We go to London and get the 0:04:19.800 --> 0:04:23.120 details from Bloomberg's UN parts. Good morning, Uen, Good morning 0:04:23.200 --> 0:04:25.760 Nathan and Karen. It's the first foreign trip for Liz 0:04:25.760 --> 0:04:28.799 trust since she became British Prime Minister two weeks ago, 0:04:29.240 --> 0:04:32.120 but touching down in New York for the UN General Assembly, 0:04:32.200 --> 0:04:34.880 she told reporters a trade deal between the UK and 0:04:34.960 --> 0:04:39.120 the US is unlikely in the shorts all the medium term. 0:04:39.160 --> 0:04:41.440 An agreement with the world's biggest economy has been an 0:04:41.480 --> 0:04:44.560 ambition for post Brexit trade policy, but for now the 0:04:44.640 --> 0:04:47.520 new PM accepts it's not going to happen anytime soon 0:04:47.839 --> 0:04:50.320 in London, Immune parts, Blomberg debreak. All right you and 0:04:50.360 --> 0:04:52.320 thanks now to the latest on the war in Ukraine. 0:04:52.360 --> 0:04:55.560 The country's foreign minister Demetro Klebs, calling on Western allies 0:04:55.600 --> 0:04:58.280 to send even more weapons to cement the games from 0:04:58.279 --> 0:05:01.520 this month's counter offensive against Caleb, says it has been 0:05:01.560 --> 0:05:05.160 successful so far. It wasn't expected for some, but it 0:05:05.279 --> 0:05:11.800 was as thoroughly planned and well thought military operation. Um. 0:05:11.839 --> 0:05:15.160 The next phase will be to continue liberating our territories. 0:05:15.240 --> 0:05:18.200 We will continue our counter offensive in the east of 0:05:18.200 --> 0:05:21.680 the country. Ukrainian Foreign Minister Demitro Caleb spoke with Bloomberg 0:05:21.680 --> 0:05:24.400 in New York ahead of the UN General Assembly's annual meeting. 0:05:24.600 --> 0:05:27.600 Last week, President Biden announced another six hundred million dollar 0:05:27.720 --> 0:05:31.240 drawn down from US military stockpiles to provide aid to Ukraine. 0:05:31.640 --> 0:05:35.040 Well incorporate news this morning, Nathan, A big legal battles 0:05:35.160 --> 0:05:37.320 back in the spotlight. We have new developments in the 0:05:37.400 --> 0:05:41.000 lawsuit filed by Twitter against Elon Musk. Twitter co founder 0:05:41.080 --> 0:05:44.040 Jack Dorrisey will now be questioned under oath today as 0:05:44.080 --> 0:05:45.640 part of the case. And we get the story from 0:05:45.720 --> 0:05:49.279 Bloomberg's Doug Christner Dorsey has been an energetic booster of 0:05:49.360 --> 0:05:51.920 Musk's forty four billion dollar bid for the company, but 0:05:52.040 --> 0:05:55.200 in July Musk retreated from his offer and accused the 0:05:55.200 --> 0:05:59.320 company of not providing information to assess the prevalence of bots. 0:05:59.600 --> 0:06:02.760 Twitter is now suing Musk to enforce the takeover agreement, 0:06:02.920 --> 0:06:06.159 even though Dorsey was subpoenaed last month by Musk. He 0:06:06.240 --> 0:06:09.760 will be questioned by attorneys from both sides via zoom. 0:06:09.760 --> 0:06:13.360 The push to gather information and interview key players comes 0:06:13.400 --> 0:06:16.280 ahead of an expedited schedule for a trial. It's lated 0:06:16.320 --> 0:06:19.919 to begin October sevente and last for five days in 0:06:19.960 --> 0:06:22.599 New York. I'm Doug Chrisner Bloomberg Daybreak, All right, Doug, 0:06:22.640 --> 0:06:25.200 thank you for it is also front and center this morning. 0:06:25.200 --> 0:06:27.599 The shares are down more than four and a half 0:06:27.640 --> 0:06:31.000 percent in early trading. The automaker says inflation is pushing 0:06:31.000 --> 0:06:33.960 its supplier costs a billion dollars higher than expected in 0:06:33.960 --> 0:06:36.760 the current quarter. Ford expects adjusted earnings to be well 0:06:36.800 --> 0:06:40.159 below the three point seven billion dollars it reported last quarter, 0:06:40.680 --> 0:06:43.440 and Nathan General Motors is getting a vote of confidence 0:06:43.480 --> 0:06:46.760 this morning from one big investor, Cathy Woods Fund has 0:06:46.760 --> 0:06:49.320 scooped up shares of GM for the first time in 0:06:49.360 --> 0:06:52.920 more than four months. Following a draw down this year 0:06:52.960 --> 0:06:56.640 through July, GM shares have been gradually recovering as the 0:06:56.640 --> 0:07:01.400 company bets on selling affordable electric vehicles and futures are lower. 0:07:01.600 --> 0:07:04.720 SNP futures are down about twenty points down, futures down 0:07:04.720 --> 0:07:07.520 a hundred thirty three, NASDACK futures down seventy three, and 0:07:07.560 --> 0:07:10.480 the Tenuere treasury down eleven thirty seconds. He had three 0:07:10.520 --> 0:07:14.040 point five three percent straight ahead, your latest, the local headlines, 0:07:14.440 --> 0:07:23.120 plus a check of sports, and this is Bloomberg. I 0:07:23.200 --> 0:07:25.720 can't thank you to six oh seven on wall street work, 0:07:25.800 --> 0:07:28.680 sixty degrees in Central Park. Got a lot of closures 0:07:28.680 --> 0:07:30.800 around the U. N may have heard they've got a 0:07:30.840 --> 0:07:34.000 general Assembly session this week. Michael Barr has more on 0:07:34.080 --> 0:07:35.480 what's going on in New York and around the world. 0:07:35.520 --> 0:07:38.600 Corny Michael, Good morning, Nathan. More migrants arrived by bus 0:07:38.600 --> 0:07:42.320 to New York from Taxas yesterday, following six additional buses 0:07:42.320 --> 0:07:45.440 over the weekend. Mayor Eric Adams as his city is 0:07:45.480 --> 0:07:49.160 considering potential legal action. The situation in New York has 0:07:49.200 --> 0:07:52.880 turned tragic, with Mayor Adams, confirming that an asylum secret 0:07:52.920 --> 0:07:55.160 took her own life at a facility over the weekend. 0:07:55.840 --> 0:08:00.560 The failure was the governors that sent people on a 0:08:00.680 --> 0:08:06.920 multi day bus ride without of proper food, without medical care, 0:08:07.240 --> 0:08:11.040 without the basic necessities. Mayor Adam says, eleven thousand, six 0:08:11.080 --> 0:08:15.240 hundred asylum seekers and migrants are here in the city. Meanwhile, 0:08:15.280 --> 0:08:18.800 the Texas Democratic Sheriff announced the criminal investigation has been 0:08:18.840 --> 0:08:22.320 opened into who was behind the recruitment of dozens of 0:08:22.360 --> 0:08:25.280 migrants in San Antonio. It'll be flown on a charter 0:08:25.400 --> 0:08:29.840 plane to Florida and Martha's Vineyard in Massachusetts. Bear County 0:08:29.920 --> 0:08:33.760 Sheriff Javier Salazar says they were lured, they were promised work, 0:08:33.880 --> 0:08:36.320 they were promised the solution to several of their problems. 0:08:36.840 --> 0:08:40.800 They were taken to Martha's Vineyard from what from what 0:08:40.880 --> 0:08:44.360 we can gather for nothing, for a little more than 0:08:44.960 --> 0:08:49.400 a photo video op and then they were unceremoniously stranded 0:08:49.800 --> 0:08:53.280 in Martha's Vineyard. Sheriff Salazar says it's believed that a 0:08:53.360 --> 0:08:56.920 Venezuelan migrant was paid what is called a bird dog 0:08:57.040 --> 0:09:00.280 fee to recruit people from around a migrant re source 0:09:00.360 --> 0:09:04.680 center Fiona strengthened to a Gatacori three hurricane overnight, with 0:09:04.800 --> 0:09:07.320 winds of a hundred fifteen miles per hour as it 0:09:07.360 --> 0:09:10.640 approached the Turks and Caicos islands. In Puerto Rico, more 0:09:10.640 --> 0:09:13.400 than a million people are without power, and officials say 0:09:13.480 --> 0:09:17.040 roughly thirty five inches of rain could fall on some areas. 0:09:17.400 --> 0:09:20.720 In New York, Governor Kathy Hokel says Puerto Rico needs 0:09:20.760 --> 0:09:23.760 assistance like any other state going through a natural disaster. 0:09:24.200 --> 0:09:27.400 These our citizens, fellow citizens, and that is why we 0:09:27.679 --> 0:09:29.400 do this mutual late, as we would do if there were, 0:09:29.440 --> 0:09:33.360 you know, the flooding in Kentucky. Governor Hokel says, utility 0:09:33.400 --> 0:09:35.839 crews are ready to go down to help. U N 0:09:35.880 --> 0:09:39.400 Secretary General Antonio Guterres is warning that the world is 0:09:39.440 --> 0:09:43.000 in great peril. He says. World leaders, meeting in person 0:09:43.040 --> 0:09:44.960 for the first time in three years at the UN 0:09:45.000 --> 0:09:49.640 General Assembly in New York, must tackle conflicts and climate catastrophes. 0:09:50.040 --> 0:09:52.640 Global News twenty four hours a day on air and 0:09:52.760 --> 0:09:56.120 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:56.160 --> 0:09:59.240 journalists analysts more than a hundred twenty countries. Michael bar 0:09:59.400 --> 0:10:06.520 this is one Burg, Nathan Michael, thank you Almost six 0:10:06.520 --> 0:10:08.880 ten on Wall Street time for the Bloomberg Sports Update 0:10:08.880 --> 0:10:11.800 with John Stenshowner. Thanks Nathan. The Mets now officially in 0:10:11.880 --> 0:10:14.160 the playoffs and they're hoping that next month it's there. 0:10:14.240 --> 0:10:16.560 One two punts they could take them for the night. 0:10:16.559 --> 0:10:19.760 After Jacob Gron began his start with five perfect dtings, 0:10:19.840 --> 0:10:22.480 it was Max Scherzer's turn. Came off the injured list 0:10:22.559 --> 0:10:25.320 in Milwaukee in to hurl six perfect and Ain't Serger 0:10:25.440 --> 0:10:28.120 was then taken out. Brewer's scored twice in the seventh 0:10:28.120 --> 0:10:30.160 thought Tyler McGill, also just back from injury, but the 0:10:30.200 --> 0:10:33.520 Mets one seven to two. Sherzer's two d career victory 0:10:33.520 --> 0:10:35.800 Pete Alonso at the three run homers thirty six. The 0:10:35.880 --> 0:10:38.880 Braves also won. They remain a game behind even in 0:10:38.920 --> 0:10:41.240 the lost column. Yankees back home tonight to play Pittsburgh 0:10:41.280 --> 0:10:43.679 and the hot taking this for a seat in the bleachers, 0:10:44.080 --> 0:10:46.400 chance to catch a ball hit out by Aaron Judge, 0:10:46.400 --> 0:10:49.400 sitting on fifty nine home runs. His next one match's 0:10:49.440 --> 0:10:52.720 Babe Ruth from seven and then it's on the Roger Marri's. 0:10:52.800 --> 0:10:57.560 Judge continues to say it's not on his mind. Games, 0:11:01.160 --> 0:11:03.760 there is numbers, you know, focus on doing. I can 0:11:03.840 --> 0:11:06.240 to be a good teammate, help the team win, but 0:11:06.760 --> 0:11:09.040 that means hitting Homer, and then it means sitting Homer. 0:11:09.080 --> 0:11:14.079 But never been my focus, ever been. You know. The 0:11:14.160 --> 0:11:17.040 Astros last night clinch the Als. The Guardians won. They 0:11:17.080 --> 0:11:19.200 leave the Ale Central by four games. Parent Mother Night 0:11:19.200 --> 0:11:22.880 blowouts Buffalo forty one to seven over Tennessee. Josh Allen 0:11:22.880 --> 0:11:25.600 and Stefan Diggs hooked up for touchdowns three times. Philadelphia 0:11:25.800 --> 0:11:28.640 all over Minnesota twenty four to seven. Jalen Hurts ran 0:11:28.760 --> 0:11:31.880 for two touchdowns and through a fifty three r TV passed. 0:11:32.040 --> 0:11:34.440 Rob Sala says, Zach Wilson looks good in practice, but 0:11:34.480 --> 0:11:37.400 the Jets might stick with last Sunday's hero Joe Blaco 0:11:37.480 --> 0:11:39.920 for at least one more games. Sunday in Cincinnati the four. 0:11:40.000 --> 0:11:44.920 Wilson returns from his Injurney Bloomberg Sports Nathan all Right, John, 0:11:44.960 --> 0:11:48.160 thanks for watching futures fall ahead of the FED decision tomorrow. 0:11:48.280 --> 0:11:50.679 Right now, S and P futures are down twenty points. 0:11:50.679 --> 0:11:53.640 Stown futures down a hundred forty. NASTAC futures are lower 0:11:53.720 --> 0:11:56.960 by seventy six points. We talked about this market next 0:11:56.960 --> 0:12:00.040 with Daniel Morris, chief market strategist at BNP part he 0:12:00.120 --> 0:12:08.160 bought asset management. This is Bloomberg Bloomberg day Break brought 0:12:08.200 --> 0:12:10.319 to you by Jewish Communal Fund. For fifty years, j 0:12:10.480 --> 0:12:13.040 c F Stoner Advised Funds have been helping families create 0:12:13.120 --> 0:12:15.719 charitable legacies. Start now and open to j c F 0:12:15.800 --> 0:12:18.280 fund before your end. Visit j c F n y 0:12:18.400 --> 0:12:24.959 dot org. Markets headlines and breaking news twenty four hours 0:12:24.960 --> 0:12:27.920 a day at Bloomberg dot com, The Bloomberg business at 0:12:28.000 --> 0:12:37.360 hand at Bloomberg Quick Day. She's a Bloomberg business flash 0:12:37.960 --> 0:12:41.120 and I'm Karen Moscow. Stocks are falling, with US Stock 0:12:41.200 --> 0:12:44.200 index futures giving up early games as trader's race for 0:12:44.240 --> 0:12:47.960 another supersized US rate high commid rising anxiety that the 0:12:48.000 --> 0:12:51.120 Fed could overtighten and raise the odds of a hard landing. 0:12:51.120 --> 0:12:53.439 We checked the markets every fifteen minutes throughout the trading 0:12:53.520 --> 0:12:56.440 day on Bloomberg, U S and P futures down twenty 0:12:56.440 --> 0:12:59.200 one point, staff futures done a hundred forty four, NASDAG 0:12:59.240 --> 0:13:02.040 futures down sent three and the decks in Germany's down 0:13:02.080 --> 0:13:05.000 nine tenths of a percent ten Your treasury down twelve 0:13:05.040 --> 0:13:08.400 thirty seconds, yell three point five three percent yield on 0:13:08.440 --> 0:13:11.880 the two year three point nine seven percent. Ninemex crude 0:13:11.880 --> 0:13:14.280 oil lit'tle change at eighty five dollar seventy eight cents 0:13:14.280 --> 0:13:16.680 a barrel, Pomex go down to tens per cent or 0:13:16.720 --> 0:13:19.800 three dollars seventy cents at sixteen seventy four fifty ounce. 0:13:20.200 --> 0:13:23.000 The Euro one point zero zero zero three against the 0:13:23.080 --> 0:13:25.280 dollar British found one point one four one nine and 0:13:25.320 --> 0:13:28.200 the yen one forty three point seven two. Looking at 0:13:28.240 --> 0:13:30.480 Bitcoin this morning, down one and a half percent at 0:13:30.559 --> 0:13:33.959 nineteen thousand, two hundred twenty dollars. That's a Bloomberg business 0:13:34.000 --> 0:13:36.400 flash down. Here's Michael Barr with more on what's going 0:13:36.400 --> 0:13:38.679 on around the world. Michael Karen, thank you very much. 0:13:38.760 --> 0:13:42.600 Hurricane Fiona strengthened into a Category three storm as it 0:13:42.640 --> 0:13:46.959 now heads towards the Churchs and Cacos Islands. It continues 0:13:47.000 --> 0:13:49.760 to cause heavy winds and rain in the Dominican Republic 0:13:49.800 --> 0:13:52.320 in Puerto Rico, where flood of waters rushed through the 0:13:52.360 --> 0:13:56.120 streets and many are without power. Border crossing sword in 0:13:56.160 --> 0:14:00.280 august US Customs and Border Protections reported an increase in 0:14:00.400 --> 0:14:04.560 migrants from Venezuela, Cuba, and Nicaragua, stopping about fifty six 0:14:04.600 --> 0:14:08.880 thousand last month. It was a Monday night football doubleheader. 0:14:09.000 --> 0:14:12.880 The Bills down the Titans with a giant win forty 0:14:12.920 --> 0:14:17.160 one to seven. The Eagles beat the Vikings seven. In baseball, 0:14:17.280 --> 0:14:20.480 the Mets one, clinching a playoff birth. The Nationals and 0:14:20.560 --> 0:14:24.440 Orioles lost the Giants one. Global twenty four hours a 0:14:24.520 --> 0:14:27.600 day on air and on Bloomberg Quicktake, powered by more 0:14:27.640 --> 0:14:29.960 than twenty seven hundred journalists and analysts more than a 0:14:30.040 --> 0:14:33.680 hundred twenty countries. I'm Michael Barn. This is BLOOMBERGA okay, Michael, 0:14:33.720 --> 0:14:36.320 thank you. The six nineteen on Wall Street Live from 0:14:36.320 --> 0:14:40.400 the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak as 0:14:40.440 --> 0:14:42.640 we keep our focus on this market ahead of the 0:14:42.680 --> 0:14:46.240 Fed decision tomorrow. We're joined by Daniel Morris, chief market 0:14:46.320 --> 0:14:50.600 strategist at BNP Party Asset Management. Daniel, good morning, Look 0:14:50.600 --> 0:14:54.160 at the futures, it looks like stocks could give back 0:14:54.560 --> 0:14:57.880 most of the modest gain we saw yesterday. What do 0:14:57.880 --> 0:15:00.760 you think is driving this uh in a gloomy move 0:15:00.800 --> 0:15:04.840 we're seeing right now. Uh, fear and loathing though I 0:15:04.840 --> 0:15:07.560 think that that might be a book title. I mean, clearly, 0:15:07.600 --> 0:15:09.600 the markets are gonna be nervous until we get an 0:15:09.600 --> 0:15:12.520 actual number from the fet UH and the story behind it. 0:15:12.600 --> 0:15:15.479 So just anxiety is what you're going to see, volatility 0:15:15.520 --> 0:15:17.360 in the swings and so you've got it until you've 0:15:17.360 --> 0:15:20.320 got a bit more concrete information. All right, Well, what's 0:15:20.480 --> 0:15:24.600 the concrete information you're expecting from the FT. Obviously we've 0:15:24.640 --> 0:15:27.400 got the markets pricing in a seventy five basis point 0:15:27.560 --> 0:15:31.160 move we heard from the Swedish Central Bank surprising with 0:15:31.200 --> 0:15:34.240 a hundred basis points. Could we see a surprise from 0:15:34.240 --> 0:15:37.800 the Fed tomorrow, Well, of course we always could. I 0:15:37.840 --> 0:15:40.960 think that's the bit of information that we want to 0:15:41.120 --> 0:15:44.800 definitively have that it's only only seventy series of UD 0:15:45.160 --> 0:15:47.880 turned out to be unwarranted. Uh, and you know, our 0:15:47.960 --> 0:15:50.960 expectation is that it will be seventy five, but you 0:15:51.040 --> 0:15:53.480 never know. And I think what's also important to keep 0:15:53.480 --> 0:15:56.560 in mind is, you know we especially with this next hike, 0:15:56.720 --> 0:15:59.520 that's a lot of moves, a lot of hikes from 0:15:59.560 --> 0:16:02.760 the FT over a relatively brief period of time. And 0:16:02.800 --> 0:16:06.840 that's as yet really not had any input, not any, 0:16:06.880 --> 0:16:09.320 but not its full impact on the economy. So even 0:16:09.320 --> 0:16:11.920 though of course we're very much focused on inflation and 0:16:11.960 --> 0:16:15.760 focused on growth, you know, the real import of all 0:16:15.800 --> 0:16:17.960 these hikes is yet to be felt. So that's why 0:16:18.000 --> 0:16:20.480 we need to balance. Okay, what's been done so far, 0:16:20.960 --> 0:16:22.960 what is that going to do to growth and inflation? 0:16:23.040 --> 0:16:25.720 And then how you know does the FED then respond 0:16:25.720 --> 0:16:27.720 to that? Do they pause and say we've done enough, 0:16:27.840 --> 0:16:30.600 or do they keep going? Yeah, I guess that raises 0:16:30.640 --> 0:16:32.880 the question as you say, what we could expect from 0:16:32.880 --> 0:16:37.920 the FED in the subsequent meetings in November and December. 0:16:38.320 --> 0:16:42.600 What's your outlook there? Well? As always, the debate with 0:16:42.640 --> 0:16:44.840 central banks is is what you think they should do 0:16:44.920 --> 0:16:47.040 and what they will do, And what they've been messaging 0:16:47.160 --> 0:16:49.280 is they want to see some real declines in the 0:16:49.320 --> 0:16:54.080 inflation rate, so ideally inflation cooperates on that line. In particular, 0:16:54.480 --> 0:16:56.320 leave we want to remember we need to focus on 0:16:56.440 --> 0:16:59.920 core inflation, on headline inflation, and if we do start 0:17:00.040 --> 0:17:02.680 to see a reduction in those pressures, which is possible, 0:17:03.040 --> 0:17:06.320 then that would allow the F maybe not to start 0:17:06.359 --> 0:17:08.080 cutting rates. We think there is going to be a 0:17:08.119 --> 0:17:10.560 pivot for quite a while yet, but at least to 0:17:10.680 --> 0:17:13.439 slow down on the hikes or on the pace hikes. 0:17:13.480 --> 0:17:15.160 So that's going to be the key thing. I'm sure 0:17:15.160 --> 0:17:17.560 they're going to mention data dependent because really that is 0:17:17.920 --> 0:17:20.159 what they're highlighting, and that's what we're also going to 0:17:20.200 --> 0:17:23.240 be paying attention to as well. So how do you 0:17:23.400 --> 0:17:28.200 advise clients to position given the uncertainty we are seeing 0:17:28.240 --> 0:17:31.000 around the federal reserve right now? How do you balance 0:17:31.040 --> 0:17:35.800 the portfolio in this environment? Yeah, well, there's certainly not 0:17:35.840 --> 0:17:38.480 only is I think it's always challenging, but particularly challenging 0:17:38.520 --> 0:17:40.479 this year, given that you've had negative returns, and not 0:17:40.520 --> 0:17:43.040 only for equities, but of course for fixed income, and 0:17:43.040 --> 0:17:45.480 and anyone who's had a sixty forty portfolio starts to 0:17:45.520 --> 0:17:48.840 wonder if that's really the right allocation. The overall we're 0:17:48.880 --> 0:17:54.080 neutral inequities, but overweight outside of the markets with that 0:17:54.200 --> 0:17:57.680 face these monetary pressure, So we're underweighting New York for example, 0:17:57.720 --> 0:18:01.280 and we're overweight in China and Japan. So I think one, uh, 0:18:01.280 --> 0:18:05.199 it's geographical diversification. And then even within fixed income, and 0:18:05.240 --> 0:18:07.600 we're still short duration in the US, but we do 0:18:07.840 --> 0:18:11.160 like Euro's own investment in great credit where spreads are 0:18:11.200 --> 0:18:15.199 actually fairly high and we think attractive relatives to the 0:18:15.280 --> 0:18:17.800 risk that you're taking. So, you know, as in any market, 0:18:17.800 --> 0:18:20.080 there is opportunity, you've got to look at the risk reward, 0:18:20.359 --> 0:18:24.200 and we are finding some good opportunities even with this environment. 0:18:24.640 --> 0:18:29.639 Other than geographical diversification. Do you see any opportunities some 0:18:29.760 --> 0:18:35.000 alternative investments in in the US? Well, and always and 0:18:35.080 --> 0:18:37.439 if anything, if you think about you know what UH 0:18:37.720 --> 0:18:41.280 you know, publicly treated UH portfolios have gone through this year. 0:18:41.560 --> 0:18:43.399 You know, I think we've all been looking about and 0:18:43.440 --> 0:18:47.240 thinking about private equity, private at those types of alternative 0:18:47.280 --> 0:18:49.840 investments for a long time. But their value I think 0:18:49.880 --> 0:18:52.440 has really come through this year. Is it really does 0:18:52.560 --> 0:18:55.400 give you some diversification, and you know, I think that's 0:18:55.440 --> 0:18:57.760 that's really what everyone is looking for right now now, 0:18:57.840 --> 0:19:00.720 last thirty seconds here, Daniel. Are there certain in sectors 0:19:00.720 --> 0:19:02.960 that are more insulated from the risk of an economic 0:19:03.000 --> 0:19:06.800 slowdown in the US than others? Well, typically you're gonna 0:19:06.840 --> 0:19:09.479 look towards defensive sectors, and you know that's always been 0:19:09.520 --> 0:19:11.040 the case, and I think that well, the cases you 0:19:11.119 --> 0:19:13.720 start to see growth slow down in the US, and 0:19:13.840 --> 0:19:16.440 at some point, though not necessarily right away, I think 0:19:16.440 --> 0:19:18.120 you are going to want to look to growth because 0:19:18.160 --> 0:19:20.840 if we do start moving into a recession, growth comes 0:19:20.840 --> 0:19:22.399 out of premium. So I think that's going to be 0:19:22.480 --> 0:19:25.040 the other area we're gonna be looking at interesting. Thanks 0:19:25.040 --> 0:19:27.760 for this, Daniel, as always good speaking with you. Daniel Morris, 0:19:27.800 --> 0:19:32.320 chief market strategist at BNP Party Asset Management. Right now, 0:19:32.400 --> 0:19:35.439 futures are moving lower across the board. SMP futures are 0:19:35.480 --> 0:19:38.520 down nineteen points now down futures down a hundred thirty 0:19:38.640 --> 0:19:42.199 and NASDAC futures are lower by sixties six points. The 0:19:42.280 --> 0:19:45.120 tenure Treasury is down twelve thirty seconds, the old three 0:19:45.119 --> 0:19:48.280 point five three percent yield on the two year edging 0:19:48.320 --> 0:19:51.440 close to the four right now three point nine seven 0:19:51.600 --> 0:19:54.639 per cent dollar strength once again this morning, the Euro 0:19:54.720 --> 0:19:57.399 at one point zero zero zero eight to the en 0:19:57.560 --> 0:20:01.840 one forty three point five nine. Are listening to Bloomberg 0:20:01.920 --> 0:20:09.879 Daybreak Bloomberg eleven three oh weather. Sunshine today, low eighties, 0:20:09.920 --> 0:20:13.480 will be near eighty under mostly sunny sky. Tomorrow showers 0:20:13.560 --> 0:20:17.600 likely Thursday, upper seventies. Right now sixty nine degrees in 0:20:17.720 --> 0:20:29.200 Central Park, broadcasting live from the Bloomberg Interactive Broker Studio 0:20:29.320 --> 0:20:32.480 in New York, Bloomberg E Loving Freedom to Washington, d C, 0:20:32.680 --> 0:20:36.640 Bloomberg nine to Boston, Bloomberg one O six one does 0:20:36.640 --> 0:20:40.320 San Francisco, Bloomberg N sixty to the Country, Sirius XM 0:20:40.440 --> 0:20:43.280 chto one nine ten, and around the globe the Bloomberg 0:20:43.280 --> 0:20:47.200 Business app and Bloomberg Radio dot com. This is Bloomberg 0:20:47.280 --> 0:20:55.480 Daybreak six thirty on Wall Street. Good morning, I'm Nathan 0:20:55.520 --> 0:20:58.639 Hager and I'm Karen Moscow. We're just about three hours 0:20:58.680 --> 0:21:00.600 away from the open of U West Rating. Time to 0:21:00.680 --> 0:21:02.760 the five things that you need to notice start your day. 0:21:02.760 --> 0:21:07.120 Brought to you by Interactive Brokers. Interactive Brokers Simple ibk 0:21:07.240 --> 0:21:10.080 our Global Trader app, deposit in your local currency and 0:21:10.119 --> 0:21:12.720 trade stocks in the US, Europe and Asia. Start your 0:21:12.720 --> 0:21:15.960 free trial at ibk r dot com Slash Global Trader. 0:21:16.680 --> 0:21:19.560 First futures are lower following a late day rally on 0:21:19.640 --> 0:21:21.920 Walls Street. It comes as the Fed kicks off as 0:21:21.920 --> 0:21:24.800 two day policy meeting, and the question now is whether 0:21:24.840 --> 0:21:27.480 the Central Bank hikes interest rates by seventy five or 0:21:27.520 --> 0:21:31.000 a hundred basis points. William Houston as Chief Investment Officer 0:21:31.080 --> 0:21:34.600 at Bay Street Capital. As soon as that trend reversed 0:21:34.680 --> 0:21:37.359 this course, you know, we stopped seeing this inversion in 0:21:37.440 --> 0:21:41.000 the yield curve where investors are being actually rewarded at 0:21:41.000 --> 0:21:44.240 a higher rate on these sorter term yields as opposed 0:21:44.280 --> 0:21:47.160 to longer term reels. As long as that's the case, Yeah, equity, 0:21:47.160 --> 0:21:50.680 they're going to perform poorly. William Houston at Bay Street Capital. 0:21:50.680 --> 0:21:53.640 Thanks the Federal race rates seventy five basis points tomorrow 0:21:53.680 --> 0:21:55.639 and join us for live coverage of the FED decision 0:21:55.720 --> 0:21:59.399