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Speaker 1: From the Bloomberg Interact Dave Berger Studios. This is Bloomberg

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Speaker 1: day Break for Tuesday, October eleven two. Coming up this hour,

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Speaker 1: stocks drop and yields rise on concerns the Fed will

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Speaker 1: remain hackish. The Bank in England is forced to expand

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Speaker 1: its emergency measures to tackle chaos in the bond market.

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Speaker 1: The route in chip stocks continues around the world, and

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Speaker 1: he Seven leaders way their response to Russia's missile garage

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Speaker 1: on Ukraine. The woman has been arrested in the fatal

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Speaker 1: attack on a man on a Bronx Bux. Plus a

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Speaker 1: feisty debate between the two Senate candidates in Ohio. I'm

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Speaker 1: Michael barr More, Ah, I'm John Stash Howard sports that

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Speaker 1: Chiefs Rallied the Top the Raiders. The Yankees begin their

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Speaker 1: playoff series with Cleveland and the Topeny Night for the Rangers.

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Speaker 1: That's all s traded ahead on Bloomberg day Break on

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Speaker 1: Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C,

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Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and

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Speaker 1: Francisco Sirius x M one nine Team and around the

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Speaker 1: World Old on Bloomberg radio dot com and via the

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Speaker 1: Bloomberg Business app. Good morning, I'm Nathan Hager and I'm

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Speaker 1: Karen Moscow and US dot Index futures are lower this morning.

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Speaker 1: We're coming up to five o one on Wall Street

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Speaker 1: and we check the markets every fifteen minutes throughout the

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Speaker 1: trading day on Bloomberg. U S and P future is

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Speaker 1: down thirty four points now futures down two eight and

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Speaker 1: NASTAG futures down. In ten year treasury down fifteen thirty seconds,

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Speaker 1: you know, three point nine four percent, and they yield

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Speaker 1: on the two year four point three two percent, and

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Speaker 1: nine x screwed oil is down two point seven percent

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Speaker 1: Nathan Karen. Today's dropping futures follows four straight losing sessions

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Speaker 1: on Wall Street this morning. Yields on two year treasuries

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Speaker 1: are trading at the highest level since two thousand seven,

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Speaker 1: and ten yere yields are flirting with four percent thirty

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Speaker 1: years searched to their highest since. Jordan Cohn is chief

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Speaker 1: investment officer at a c M Funds. A lot of

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Speaker 1: these areas of the market and the fixed income market

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Speaker 1: are really getting older soldier that come down quite a bit.

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Speaker 1: Yields are much higher than we've seen in years, and

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Speaker 1: so I think as soon as the market gets a

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Speaker 1: spense that inflation is peaking um and and tenure yield

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Speaker 1: start to stabilize more, you know, I think there could

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Speaker 1: be a lot of good buying opportunities. But for us now,

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Speaker 1: we're not going to put the part before the horse.

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Speaker 1: Jordan Conn of a c M fund says, the mood

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Speaker 1: remains fragile. I had a Thursday's inflation data. Well. As

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Speaker 1: for equities, Nathan, perhaps the hardest sector hit in the

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Speaker 1: recent sell off has been chip stocks. In fact, more

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Speaker 1: than two hundred forty billion dollars in market value has

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Speaker 1: been wiped out since the White House impost curbs on

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Speaker 1: China's access to semiconductor technology. They get more from Bloomberg's

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Speaker 1: Charlie Pellett. The industry sold off globally after fresh US

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Speaker 1: curbs on China's access to American technology added to a

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Speaker 1: disappointing start to the earning season, stoking concern that the

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Speaker 1: industry's downturn is far from over. The Philadelphia Stock Exchange

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Speaker 1: Semiconductor Index fell three and a half percent, closing at

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Speaker 1: its lowest level since No member of the index has

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Speaker 1: dropped nearly ten percent over the past three trading days

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Speaker 1: and is now down more than forty so far this year.

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Speaker 1: In New York, Charlie Pellette Bloomberg, Debrie. Al Right, Charlie,

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Speaker 1: thank you, and the chip sell off continued overnight, leading

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Speaker 1: stocks lower in Asia. Let's get more on that from

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Speaker 1: Bloomberg's Juliette Sally in Singapore, Good morning, Juliet, Good morning,

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Speaker 1: Nathan and Karen. Some of the biggest losses were in

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Speaker 1: ship related equities in Japan, South Korea, and Taiwan, where

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Speaker 1: traders returned from holidays to join the global sell off

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Speaker 1: in semiconductor shares. Taiwan's tie X traded at November twenty

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Speaker 1: twenty lows, while t s MC shares fell as much

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Speaker 1: as eight and a half percent, the most on record

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Speaker 1: to July twenty twenty lows began traded within sight of

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Speaker 1: the original level that spurred Japanese authorities to defend the

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Speaker 1: currency in September, and they want slid as warri mounts

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Speaker 1: at Beijing will uphold its COVID zero policy well after

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Speaker 1: the Chinese Communist Party Congress this month. In Singapore, Juliette

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Speaker 1: Sally Bloomberg Daybreak, All right, Juliette, thank you well. In

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Speaker 1: Europe this morning, the Bank of England has been forced

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Speaker 1: to spend its emergency measures as in response to chaos

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Speaker 1: and the bond market. And let's go live to London

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Speaker 1: and get the latest from Bloomberg's U and Pass. Good morning,

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Speaker 1: you w Good morning karenen Nathan. It's the second time

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Speaker 1: this week the UK Central Bank has moved to calm

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Speaker 1: the bond market. This morning, the banking that expanded the

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Speaker 1: scope of its guilt purchases to include inflation linked debt

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Speaker 1: in an effort to avert what it called a fire sale.

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Speaker 1: The intervention comes after a severe set off on Monday

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Speaker 1: that saw UK inflation yields surging by the most on

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Speaker 1: record in London, Immune part Sploomberg daybreak, are you and thanks?

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Speaker 1: The risk of a global recession is now rising thanks

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Speaker 1: to higher rates. That's according to the head of the

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Speaker 1: International Monetary Fund and World Bank President David Malpass. There's

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Speaker 1: the risk and the real danger of a world recession

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Speaker 1: next year. The advanced economies are are slowing in Europe.

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Speaker 1: The debt levels for the developing countries are getting more

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Speaker 1: and more burdensome. The rise in interest rates puts added

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Speaker 1: weight on it, and inflation is still a major problem

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Speaker 1: for for everyone, but especially for the poor. Those comments

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Speaker 1: from World Bank President David Malpass are being echoed by

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Speaker 1: JP Morgan CEO Jamie Diamond. He says here serious headwinds

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Speaker 1: are likely to push the U S and global economies

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Speaker 1: into recession by the middle of next year. Meantime, Nathan,

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Speaker 1: the FED keeps banging the drum for higher rates. Still,

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Speaker 1: Vice chair Lyle Brainerd say lays out a case for

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Speaker 1: caution as the Central Bank works to curb inflation in

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Speaker 1: light of elevated global economic and financial uncertainty. Moving forward

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Speaker 1: deliberately and in a data dependent manner will enable us

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Speaker 1: to learn how economic activity, employment, and inflation are adjusting

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Speaker 1: to the cumulative tightening in order to inform our assessment

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Speaker 1: of the path of the policy rate. Fed Vice Chair

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Speaker 1: Lyle Brainerd made the comments yesterday at a meeting of

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Speaker 1: the National Association for Business Economics in Chicago. Despite some

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Speaker 1: coution Karen, it's too early for a FED policy pivot.

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Speaker 1: That's according to strategistic Goldman Sachs, who say the economic

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Speaker 1: outlook is not bad enough yet and eight markets remain

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Speaker 1: two volatile economist predict the FED is on track to

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Speaker 1: deliver its fourth straight seventy five basis point hike at

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Speaker 1: next month's meeting. Now, let's get the latest on the

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Speaker 1: war in Ukraine. Nathan Russia has launched even more strikes

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Speaker 1: in the country, just a day after the most intense

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Speaker 1: barrages since the early days of the invasion. President Biden

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Speaker 1: will speak with a group of seven leaders this morning.

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Speaker 1: He's fledging to impose more costs on the Kremlin and

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Speaker 1: to keep providing support to Kiev. John Herbs is a

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Speaker 1: former US Ambassador to Ukraine and now Senior director of

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Speaker 1: the Atlantic Council's Eurasia Center. Who's objective is not to

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Speaker 1: take a bit of territory Ukraine's east. Is objective today

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Speaker 1: is to take political control of Ukraine. Is objective tomorrow

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Speaker 1: once he has Ukraine in his pocket, is to go

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Speaker 1: after other states, including Allen NATO Allas. So he is

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Speaker 1: coming for our NATO Allas, we are about to defend

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Speaker 1: with American troops. Farmer. Ambassador to Ukraine John Herbs spoke

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Speaker 1: with our Washington correspondent Joe Matthew on Bloomberg's sound on

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Speaker 1: Catch the program weekdays at five pm eastern on Bloomberg right.

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Speaker 1: SMP futures right now are down thirty two points. Staff

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Speaker 1: futures down two or to thirty eight. Nastack futures are

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Speaker 1: lower by nine points. The tenure treasury is down fifteen

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Speaker 1: thirty seconds. The yield three point nine four nimex crew

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Speaker 1: trading at eighty eight dollar sixty four cents of barrel.

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Speaker 1: Local headlines and the check of sports up next. This

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Speaker 1: is Bloomberg. He's out five oh seven on Wall Street

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Speaker 1: work fifty four degrees in Central Park. Got an issue

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Speaker 1: in Neptune, New Jersey. Route thirty five is closed both

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Speaker 1: ways by Lake Avenue. Tell you why shortly. First, Michael

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Speaker 1: bars here with what else is going on in New

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Speaker 1: York and around the world. The morning Michael, Good morning Nathan.

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Speaker 1: A woman has been arrested in the fatal stabbing of

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Speaker 1: a man during an argument aboard and mt A bus

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Speaker 1: in the Bronx. Lamont Barkley, who was fifty five, is

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Speaker 1: the eighth person to be killed in the transit system

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Speaker 1: this year. The NMPDS has Barkley got into a verbal

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Speaker 1: dispute with a man and a woman believed to be

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Speaker 1: boyfriend and girlfriend on a bus Sunday night. Authorities say

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Speaker 1: the argument escalated and the man stab Barkley multiple times

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Speaker 1: in the stomach. Detectives yesterday said forty two year old

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Speaker 1: Ebony Jackson was arrested in connection to the stabbing. The

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Speaker 1: man is still on the loose. It was a feisty

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Speaker 1: debate in Ohio last night between two Senate candidates. Democratic

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Speaker 1: Congressman Tim Ryan and Republican j D. Vans were on

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Speaker 1: Ohio's Next Our Media. President Trump endorsed Vans. He talks

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Speaker 1: about wanting to support a stronger border. He talks about

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Speaker 1: wanting to be bipartisan and get things done. Tim, You've

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Speaker 1: been in Congress for twenty years, and the border problem

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Speaker 1: has got worse and worse and worse. Bryan on his opponent, JD.

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Speaker 1: Vans raised money for the legal defense Fund of the insurrectionists.

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Speaker 1: This is the kind of extremism, j D, that we

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Speaker 1: wholly reject. You have video post. Don't even try to

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Speaker 1: The yat the race could determine which party controls the U. S. Senate.

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Speaker 1: A pro Russia hacker group that has targeted several government

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Speaker 1: websites at second responsibility for coordinated attacks targeting dozens of

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Speaker 1: US airports, including LaGuardia. John On hold Quist, head of

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Speaker 1: intelligence analysis at cybersecurity firm Mandian, says kill net has

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Speaker 1: been targeting mainly US government websites and all the systems globally. Previously,

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Speaker 1: they carried out attacks all over Europe. It carried attacks

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Speaker 1: in Japan. Even so, it's sort of a global problem,

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Speaker 1: but you know, a lot of it is a lot

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Speaker 1: of it is tied to the war in Ukraine. Hold

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Speaker 1: Quist told ABC no flights were disrupted as a result

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Speaker 1: of the attacks. The Supreme Court will hear arguments today

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Speaker 1: over at California animal cruelty law that could raise the

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Speaker 1: cost of bacon and other pork products nationwide and involves

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Speaker 1: the California law that says porks sold in the state

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Speaker 1: needs to become from pigs treated humanely. A majority of

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Speaker 1: unionized railroad workers voted to reject a tentative labor agreement

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Speaker 1: broken in park last month by President Joe Biden. Global

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Speaker 1: News twenty four hours a day on air and on

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Speaker 1: Bloomberg Quicktake, powered by more than twenty seven hundred journalist

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Speaker 1: and analysts more than a hundred twenty countries. Michael Barr

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Speaker 1: and this is Bloomberg Nathan, Thanks Michael, going up to

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Speaker 1: five ten on Wall Street time for the Bloomberg Sports

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Speaker 1: Uptake and morney John stanshow Morning the eighth and the

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Speaker 1: Mets post season is over. Now the Yankees post season

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Speaker 1: begins Game one with Cleveland ten night. It'll be Garrett

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Speaker 1: cole Ver says the Guardians cal Quandrill eighteen years ago.

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Speaker 1: His father, Paul was a Yankee reliever who served up

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Speaker 1: the David Ortiz game winning omer in Game four the

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Speaker 1: Alcs that began that Red Sox come back from pretting

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Speaker 1: nothing down. Aaron Boone met the media yesterday was asked

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Speaker 1: if the crowd will be like it was when Aaron

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Speaker 1: Judge was Jason Roger Magankee Stadium in the playoffs. It's

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Speaker 1: gonna be pretty raucous. I would imagine tomorrow night, a

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Speaker 1: lot of energy in the building, a lot of anticipation,

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Speaker 1: certainly when Aaron's up because he's Aaron Judge and and

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Speaker 1: what he can do. But no, I don't think it

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Speaker 1: will be necessarily similar to you know, when he was

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Speaker 1: sixty sixty one and stuff like that. I think it's

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Speaker 1: gonna be the playoffs, the three other division series, all

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Speaker 1: just that intro Division, Phillies and Brains in Atlanta, Mariners

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Speaker 1: and Astros in Houston thirty nine year old justin Verland.

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Speaker 1: It will start for the Astros coming off a brilliant

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Speaker 1: regular season, Padres and Dodgers and l A. The Dodgers

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Speaker 1: won the season series with San Diego fifteen to four.

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Speaker 1: The Mets offseason underway, a lot of decisions to be made.

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Speaker 1: Mets could have as many as ten free agents and

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Speaker 1: the list will include Jacob de Graham, Edwin Diaz and

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Speaker 1: Brandon Nimmo and the last other Rangers. They were losing

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Speaker 1: to Tampa Bay and the Stanley Cup Conference Final Rangers

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Speaker 1: in lightning tonight at the Garden, the beginning to do

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Speaker 1: season wild Monday Night at the Calf, Week five, Raider

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Speaker 1: has led the chief seventeen nothing. Casey came back, Patrick

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Speaker 1: Mahomes and Travis hel Kelsey Cook hooked up for four touchdowns.

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Speaker 1: Raiders scored with the game time TV with four and

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Speaker 1: Chiefs held on to win thirty ton stash were Bloomberg Sports,

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Speaker 1: Nathan john thanks SMP Futures Down Down twenty nine points,

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Speaker 1: the Bloomberg Business At and at Bloomberg Quick Tape. This

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Speaker 1: is a Bloomberg Business lash and I'm Carrot Moscow and

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Speaker 1: stocks are falling, pressured by rising treasury yields and signs

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Speaker 1: that company earnings are set to disappoint. Engage of the

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Speaker 1: fragile ahead of Thursday's US inflation data, with a case

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Speaker 1: for another seventy five basis point rate high likely to

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Speaker 1: be strong if the reading comes in higher than forecast.

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Speaker 1: And we check the markets every fifteen minutes throughout the

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Speaker 1: trading day on Bloomberg. SNP futures down twenty eight points down,

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Speaker 1: futures down two hundred five nasdack futures down eighty five.

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Speaker 1: The decks in Germany's down eight tens of a percent.

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Speaker 1: Ten year treasury down fourteen thirty seconds, you know, three

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Speaker 1: point one zero seven zero and the yen one forty

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Speaker 1: down eight tens of uppercent at nineteen thousand dollars. And

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Speaker 1: that's a bloomberg business flash. Now here's Michael Barr with

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Speaker 1: Moore on what's going on around the world. Michael, good morning,

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Speaker 1: Good morning, Karen, President Biden and g Sevenly, there's will

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Speaker 1: hold a virtual meeting to discuss how to support Ukraine

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Speaker 1: and hold Russian President Putin accountable. For Russia's aggression. This

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Speaker 1: comes as Russia recently carried out missile strying across Ukraine,

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Speaker 1: hitting major cities like Kiv. The U s Supreme Court

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Speaker 1: could hear arguments in a high stakes case today involving pork.

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Speaker 1: The nation's twenty billion dollar pork industry is asking the

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Speaker 1: justices to strike down California's Proposition twelve that would ban

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Speaker 1: the sale of all pork that comes from pigs raised

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Speaker 1: in spaces that aren't large enough for them to turn

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Speaker 1: around in In football, the Chiefs beat the Raiders thirty

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Speaker 1: twenty nine. In baseball, Game one of the a LDS

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Speaker 1: begins tonight. For the Yankees, they play the Guardians. The

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Speaker 1: NHL season begins tonight. The Rangers take on the Lightning.

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Speaker 1: Global News twenty four hours a day on airrand on

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Speaker 1: Bloomberg Quicktake, powered by more than twenty seven hundred journalists

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Speaker 1: and analysts more than a hundred twenty countries. I'm Michael Barron.

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Speaker 1: This is Bloomberg, Nathan. Thanks Michael. It's five nineteen on

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Speaker 1: Wall Street Live from the Bloomberg Interactive Broker Studios. This

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Speaker 1: is Bloomberg Daybreak and let's get more now on what's

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Speaker 1: happening in Ukraine following Russia's barage on Kiva and other cities,

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Speaker 1: and as the G seven gets set to meet joining

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Speaker 1: us now, Bloomberg News Executive editor for International Government Rosalind mathieson,

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Speaker 1: so get us up to speed on what's been happening

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Speaker 1: since that barrage. I understand a lot of the attention

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Speaker 1: now as far as developments on the ground is back

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Speaker 1: in the so called annexed territories in the south and east. Well,

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Speaker 1: that's right. So after yesterday's missile attacks which really struck

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Speaker 1: across a wide swath of Ukraine from the south to

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Speaker 1: the east, Dikiev also across to Levov in the west,

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Speaker 1: sending the message that nowhere really in Ukraine remains totally

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Speaker 1: safe at this point from Russia's reach. This morning we

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Speaker 1: had fresh strikes on Zaparitzia, which is of course the

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Speaker 1: area of annexed Ukraine that houses the key nuclear power plant.

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Speaker 1: Has been a lot of focus on that plant since

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Speaker 1: the war broke out, of course, the safety of the

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Speaker 1: plant's inability to keep operating um in difficult circumstances and

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Speaker 1: so on. So really we're seeing a string of attacks

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Speaker 1: around that area in recent weeks. But certainly the message

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Speaker 1: that we're getting from Russia as this war takes an

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Speaker 1: even darker turn, is that Vladimir Putin is not going

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Speaker 1: to give up. He's not he's not willing to seed

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Speaker 1: mobilizing his troops and now of course stepping up his

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Speaker 1: and wanted to get a little deeper into where this

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Speaker 1: could go from here. Given the pressure that Vladimir putinize,

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Speaker 1: I understand his feeling from hardliners within his own country,

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Speaker 1: and the continued morale issues that we've been witnessing on

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Speaker 1: the part of Russian troops in Ukraine. Well, that's right.

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Speaker 1: You can see a real chorus coming from Russia. In

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Speaker 1: recent weeks, military bloggers, military hardliners and others criticizing this

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Speaker 1: war quite publicly saying that they frustrated at the way

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Speaker 1: it's going, at the level of organization, obviously the shambolic

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Speaker 1: really sort of disappointed that Russia hasn't made better ground,

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Speaker 1: and that's put a lot of pressure of Vladimir Putin

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Speaker 1: be seen to be backing down. So the missile strikes

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Speaker 1: yesterday during drawing some praise from those quarters inside Russia,

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Speaker 1: and that really reinforces the fact again that it's very

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Speaker 1: difficult to find an off ramp at this point, because

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Speaker 1: any sort of exit does require the Russian president to

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Speaker 1: something for all of this and claims some kind of victory,

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Speaker 1: however small that might be. In equally, Ukraine's not going

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Speaker 1: to seed territory in order to make that happen. So

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Speaker 1: we're really at a at a difficult point in this conflict,

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Speaker 1: and that puts attention, of course on the US and

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Speaker 1: the G seven leaders. After President Biden just a few

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Speaker 1: days ago had said that the US was looking for

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Speaker 1: that off ramp for Vladimir Putin. Now the G seven

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Speaker 1: is getting ready to meet in just a couple hours. Here,

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Speaker 1: what are you looking for their? Well, what we're expecting

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Speaker 1: a continued state monts obviously of unity for Ukraine, of

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Speaker 1: support for Ukraine, pledging to continue to send Ukraine financially,

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Speaker 1: which is really helping the government to continue to operate,

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Speaker 1: but also to provide them weapons. What they are cautious

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Speaker 1: about is providing the sorts of ever more powerful weapons

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Speaker 1: that Ukraine says on a daily basis that really now

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Speaker 1: needs to press its advantage, and that sort of NATO's

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Speaker 1: standard weaponry, tanks, fighter jets um and the very long

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Speaker 1: range missile systems that they're asking for. And there's been

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Speaker 1: a lot of caution about sending any of that in because,

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Speaker 1: of course, the fear is that that would be seen

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Speaker 1: as a direct provocation of the Russian president, perhaps NATO

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Speaker 1: really putting itself into this confrontation, and in a climate

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Speaker 1: where the Russian president is dangling the potential use of

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Speaker 1: nuclear weapons is at a place you want to go to.

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Speaker 1: So it's unlikely to be tangible statements in terms of

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Speaker 1: more advanced weapons, but certainly expressions of continued support for

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Speaker 1: Ukraine in its fight against Russia, and will of course

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Speaker 1: be monitoring that G seven meeting and passing along any

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Speaker 1: developments as they come in. Bloomberg's Rosalind Matheson, our executive

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Speaker 1: editor for International Government, keeping us apprised of all that's

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Speaker 1: happening in Ukraine and the global response ros as always

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Speaker 1: great to have you with us. Right looking ahead to

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Speaker 1: the market open this morning, we're poised for another session

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Speaker 1: of losses potentially, with SMP futures right now down twenty

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Speaker 1: eight points down, futures down two eight. Nasdaq futures are

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Speaker 1: also lowered, down eighty three points uh. The selling continues

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Speaker 1: in the bond market as well, with the tenure Treasury

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Speaker 1: down fourteen thirty seconds, with the yield at three point

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Speaker 1: nine three percent, yield on the two year at four

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Speaker 1: point three one p Nimex cruds plunging down two and

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Speaker 1: a half percent or two dollars twenty six cents at

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Speaker 1: eighty eight dollars eighty five cents of barrel, and the

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Speaker 1: euro right now trading at point nine seven one zero

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Speaker 1: against the dollar. Stay with us, you're listening to Bloomberg

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Speaker 1: Daybreak Bloomberg eleventh three oh weather sunny today with a

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Speaker 1: high near seventy degrees apache fog possible tonight, but it's

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Speaker 1: gonna be mostly sunny again tomorrow with a high near

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Speaker 1: seventy chance for showers Thursday. Right now fifty four in

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Speaker 1: Central Park, broadcasting live from the Bloomberg Interactive Broker Studio

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Speaker 1: in New York, Bloomberg E Living Freedom to Washington, d C,

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Speaker 1: Bloomberg to Boston, Bloomberg on a six one to San Francisco,

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Speaker 1: Bloomberg nine sixty to the country, Sirius XM Channel one

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Speaker 1: nine team and around the blood the Bloomberg business in

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Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five

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Speaker 1: thirty on Wall Street. Good morning. I'm Nathan Hager and

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Speaker 1: I'm kerin Moscow and we're just about four hours away

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Speaker 1: from the open of US trading. Let's get you up

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Speaker 1: to date on the news. You need to know what

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Speaker 1: this show our well. US futures are lower yet again

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Speaker 1: after four straight and losing sessions. Earnings and inflation data

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Speaker 1: will be key this week. Some analysts expect a significant

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Speaker 1: earnings drop, but that may not come to pass if

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Speaker 1: inflation usays. That's according to Bloomberg Intelligence Chief equity strategist

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Speaker 1: Gina Martin Adams, the reality of the earning stream is

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Speaker 1: an Inflation has been a big pain point for earnings.

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Speaker 1: Revenues have been growing, but margins have been contracting amid

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Speaker 1: the rising input cost pressure. Even though companies have been

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Speaker 1: able to pass on some price increases, so we might

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Speaker 1: be somewhat surprised by the degree to which to drop

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Speaker 1: an inflation can actually soothe some of those margin pressures.

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Speaker 1: Gina Martin Adams at Bloomberg Intelligence says she expects quote

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Speaker 1: earnings confusion to continue into the next quarter. Chip stocks

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Speaker 1: have been hit particularly hard in this recent sell off, Karen.

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Speaker 1: More than two ordered forty billion dollars in global market

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Speaker 1: values been wiped away after the White House and Post

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Speaker 1: curbs on China's access to semiconductor technology. Meantime, Nathan warnings

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Speaker 1: of a global down here and are growing louder. The

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Speaker 1: heads of the International Monetary Fund and World Bank weren't

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Speaker 1: of rising risks of a global recession, and JP Morgan

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Speaker 1: CEO Jamie Diamond is joining in, says saying serious headwinds

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Speaker 1: could push the U S and global economies into recession

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Speaker 1: by the middle of next year. The Fed still raising rates, Karen,

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Speaker 1: but Vice chair Laile Brainerd is echoing some of Diamond's concerns,

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Speaker 1: noting global tightening could spill back into the US. We're

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Speaker 1: starting to see the effect on some sectors, but it's

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Speaker 1: going to take some time for that cumulative tightening to

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Speaker 1: transmit throughout the economy and for inflation to come down.

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Speaker 1: FED Vice chair law Brainerd made those comments yesterday at

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Speaker 1: a meeting of the National Association for Business Economics in Chicago.

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Speaker 1: Let me turned out to the war in Ukraine, Nathan,

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Speaker 1: where Russia is ramping up attacks and now G seven

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Speaker 1: leaders are holding an emergency meeting to discuss continue support

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Speaker 1: to Ukraine. Bloomberg's and Baxter has the story. The White House,

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Speaker 1: in a statement says the other aim will be to

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Speaker 1: hold Russian President of Vladimir Putin accountable for Russia's aggression.

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Speaker 1: Ukraine's President of Vladimir's alone, Ski will participate at the

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Speaker 1: top of the meeting. The group has already openly condemned

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Speaker 1: the Russian missile attacks, but we'll discuss whether more military

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Speaker 1: support will be forthcoming, as well as any potential economic

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Speaker 1: sanctions on Vladimir Putin and Russia. In San Francisco, I'm

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Speaker 1: at Baxter Bloomberg daybreak, all right, and thank you, and

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Speaker 1: futures this morning or lower SNP futures down thirty two

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Speaker 1: points down, futures down two one and NASDACK futures down

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Speaker 1: and a tenure Treasury down sixteen thirty seconds. You have

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Speaker 1: three point nine four percent. Try to head your latest

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Speaker 1: local headlines plus a check of sports. This is Bloomberg.

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Speaker 1: Thanks on Wall Street, fifty three degrees in Central Park

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Speaker 1: westbound four forties closed near the outer bridge crossing on

430
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Speaker 1: Staten Island, and Michael Barr's got more on what's going

431
00:23:46,240 --> 00:23:48,320
Speaker 1: on in New York and around the world. Michael, thank

432
00:23:48,320 --> 00:23:50,159
Speaker 1: you very much. Nathan. With less than a month to

433
00:23:50,240 --> 00:23:54,080
Speaker 1: go until the mid term elections, Democratic Representative Tim Ryan

434
00:23:54,160 --> 00:23:58,399
Speaker 1: squared off with Trump backed Republican candidate Jade Events in

435
00:23:58,560 --> 00:24:02,280
Speaker 1: a FEISTI Senate debate last night. Ryan, speaking on next

436
00:24:02,359 --> 00:24:06,280
Speaker 1: Our Media about Vance, Donald Trump said that jd Vance

437
00:24:06,520 --> 00:24:08,880
Speaker 1: all you do is kiss my host to get my support.

438
00:24:09,560 --> 00:24:12,840
Speaker 1: Vance responded, You're gonna take lecturers on dignity and self

439
00:24:12,880 --> 00:24:15,440
Speaker 1: respect from a guy caught on video kissing up the

440
00:24:15,520 --> 00:24:19,159
Speaker 1: Chuck Schumer. Both candidates in Ohio are pulling close in

441
00:24:19,160 --> 00:24:22,639
Speaker 1: a race that could determine which party controls the U. S. Senate.

442
00:24:23,119 --> 00:24:26,080
Speaker 1: A woman was arrested yesterday, and Sunday's fatal stabbing of

443
00:24:26,119 --> 00:24:28,040
Speaker 1: a man during an argument aboard an m T A

444
00:24:28,119 --> 00:24:31,040
Speaker 1: bus and the Bronx detectives say forty two year old

445
00:24:31,040 --> 00:24:34,399
Speaker 1: Amoni Jackson was arrested in connection to the stabbing. Police

446
00:24:34,440 --> 00:24:38,000
Speaker 1: A Jackson's apparent boyfriend allegedly stabbed Lamont Barkley, who was

447
00:24:38,040 --> 00:24:41,200
Speaker 1: fifty five. It is the eighth person to be killed

448
00:24:41,240 --> 00:24:44,119
Speaker 1: in the transit system this year, and the third within

449
00:24:44,200 --> 00:24:46,959
Speaker 1: ten days. The man is still on the loose. At

450
00:24:47,040 --> 00:24:51,080
Speaker 1: least fourteen airports around the US, including LaGuardia, reported their

451
00:24:51,240 --> 00:24:56,000
Speaker 1: internal communications and advertising systems were hit by hackers believed

452
00:24:56,000 --> 00:24:58,800
Speaker 1: to be Russian based. The group known as killed Net

453
00:24:58,800 --> 00:25:02,600
Speaker 1: claim responsibility for the attack. John Holdquist had of intelligence

454
00:25:02,640 --> 00:25:06,680
Speaker 1: analysis that cybersecurity firm Mendiant says it was a denial

455
00:25:06,760 --> 00:25:11,440
Speaker 1: of service attack on the airport websites. It's essentially superficial.

456
00:25:12,160 --> 00:25:16,040
Speaker 1: It doesn't necessarily mean that any back end resources are

457
00:25:16,080 --> 00:25:21,800
Speaker 1: being affected, or dad has been lost or anything exactument

458
00:25:21,960 --> 00:25:26,760
Speaker 1: operations that have been affected in any way. John hold

459
00:25:26,800 --> 00:25:29,280
Speaker 1: Quist with Mandy and told a d C no flights

460
00:25:29,280 --> 00:25:33,960
Speaker 1: were affected. James Brennan, the San Antonio officer that shot

461
00:25:34,000 --> 00:25:36,520
Speaker 1: an unarmed teenager who was eating inside of his car

462
00:25:36,600 --> 00:25:40,840
Speaker 1: and the McDonald's sparking lot, has been fired. Global News

463
00:25:40,840 --> 00:25:43,840
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,

464
00:25:44,080 --> 00:25:47,359
Speaker 1: powered by more than journalists and analysts more than a

465
00:25:47,440 --> 00:25:51,879
Speaker 1: hundred twenty countries. Michael Barr and this is Bloomberg. Nathan hiiight, Michael,

466
00:25:51,920 --> 00:25:59,520
Speaker 1: thanks on Wall Street time for the Bloomberg Sports Something.

467
00:25:59,680 --> 00:26:02,840
Speaker 1: Here's j Stash all right, Nathan. Yankees in Cleveland meeting

468
00:26:02,880 --> 00:26:05,640
Speaker 1: in the postseason for the six times often nineties seven

469
00:26:05,680 --> 00:26:07,680
Speaker 1: Yankees have won three of the five, included two games

470
00:26:07,680 --> 00:26:09,720
Speaker 1: sweep in a wild card series. Two years ago. Yanks

471
00:26:09,720 --> 00:26:12,119
Speaker 1: went five and one with the Guardians of the regular season.

472
00:26:12,160 --> 00:26:15,280
Speaker 1: But Cleveland just won a wild card series with Tampa

473
00:26:15,320 --> 00:26:18,040
Speaker 1: Bay where they allowed only one run in twenty four

474
00:26:18,080 --> 00:26:21,760
Speaker 1: And as the Guardians start, Cal Quantrill Tonight Stadium, Aaron

475
00:26:21,760 --> 00:26:24,760
Speaker 1: Boone starts his eights a scary cole And because he

476
00:26:24,840 --> 00:26:28,840
Speaker 1: came here and signed a huge contract, and you know

477
00:26:29,080 --> 00:26:33,000
Speaker 1: the long term and the ace of this staff, the

478
00:26:33,000 --> 00:26:37,000
Speaker 1: New York Yankee staff, you know, nothing will ever be

479
00:26:37,320 --> 00:26:43,280
Speaker 1: necessarily good enough. Um, but I think he's had a

480
00:26:43,359 --> 00:26:45,480
Speaker 1: very strong year. Cal said a New Yankee Record to

481
00:26:45,560 --> 00:26:47,520
Speaker 1: s breakouts of the season with Big Yankee. Concerned with

482
00:26:47,600 --> 00:26:50,680
Speaker 1: Cleveland's Jose Ramirez, he had a hundred and twenty six RBIs.

483
00:26:50,720 --> 00:26:53,399
Speaker 1: Only Aaron Judge had more in the American League. Had

484
00:26:53,480 --> 00:26:55,879
Speaker 1: the Mets won one more game they had won the division,

485
00:26:55,920 --> 00:26:58,240
Speaker 1: they'd be hosting the Phillies today. They went fourteen and

486
00:26:58,320 --> 00:27:01,199
Speaker 1: five against them. Instead, the Phillies are in Atlanta. The

487
00:27:01,200 --> 00:27:04,920
Speaker 1: Films got hot after they fired Joe Girardi promoted Rob Thompson.

488
00:27:04,960 --> 00:27:08,080
Speaker 1: They've now given Thompson the job full time day football

489
00:27:08,119 --> 00:27:11,240
Speaker 1: in Kansas City, Las Vegas led seventeen to nothing. Patrick

490
00:27:11,280 --> 00:27:14,520
Speaker 1: Mahomes brought the Chiefs back four touchdown passes, all the

491
00:27:14,520 --> 00:27:17,880
Speaker 1: Travis Kelsey. The Chiefs won thirty to twenty nine. Casey

492
00:27:17,880 --> 00:27:20,000
Speaker 1: has four in one Vegas one and four, all four

493
00:27:20,080 --> 00:27:23,080
Speaker 1: losses by fewer than seven points. When the Giants were

494
00:27:23,119 --> 00:27:25,800
Speaker 1: looking for a coach in nineteen, they were interested in

495
00:27:25,840 --> 00:27:29,080
Speaker 1: Matt Rowley. Instead was hired by Carolina. The Panthers just

496
00:27:29,160 --> 00:27:31,600
Speaker 1: fired him. They dropped the puck on a new NHL

497
00:27:31,640 --> 00:27:35,080
Speaker 1: season tonight, first game at the Guard and Rangers in Tampa. There,

498
00:27:35,359 --> 00:27:38,159
Speaker 1: John Stay, actually Humbert Sports maybe can't wait? Thank you?

499
00:27:38,240 --> 00:27:40,920
Speaker 1: John seven on Wall Street time for the Tri State

500
00:27:40,960 --> 00:27:44,760
Speaker 1: Business Report with Bloomberg, Scott Carr, New York based software

501
00:27:44,800 --> 00:27:48,560
Speaker 1: maker Alchemies raised twenty one million dollars in Series eight funding,

502
00:27:48,760 --> 00:27:51,920
Speaker 1: bringing its total finances to twenty six million. The maker

503
00:27:52,000 --> 00:27:55,800
Speaker 1: of software that helps business automate data workflows, says they'll

504
00:27:55,880 --> 00:27:59,000
Speaker 1: use the funds to expand hiring and product development and

505
00:27:59,160 --> 00:28:02,680
Speaker 1: go to markets rategies to Family owned New Jersey based

506
00:28:02,720 --> 00:28:05,560
Speaker 1: businesses have come together to create a one stop full

507
00:28:05,600 --> 00:28:10,439
Speaker 1: service interior exterior cleaning maintenance business for commercial customers. Ja

508
00:28:10,520 --> 00:28:14,000
Speaker 1: Don Cleaning and award winning full service commercial cleaning business

509
00:28:14,000 --> 00:28:17,840
Speaker 1: has announced the acquisition of Pico Services Property Maintenance, which

510
00:28:17,840 --> 00:28:22,240
Speaker 1: handles landscaping and property management. The Arizona College of Nursing's

511
00:28:22,280 --> 00:28:25,040
Speaker 1: plans to enter the Connecticut market could be in trouble

512
00:28:25,160 --> 00:28:27,639
Speaker 1: in the face of allegations against the school regarding a

513
00:28:27,720 --> 00:28:31,720
Speaker 1: lack of transparency, combined with pushback from some local colleges

514
00:28:31,920 --> 00:28:34,560
Speaker 1: in the Arizona College had plans to open a campus

515
00:28:34,600 --> 00:28:38,280
Speaker 1: in East Hartford. That's the Bloomberg Try State Business Report.

516
00:28:38,520 --> 00:28:41,120
Speaker 1: I'm Scott Carr. Thank you Scott. It's five thirty eight

517
00:28:41,120 --> 00:28:43,160
Speaker 1: on Wall Street. Bloomberg Radio is on the air from

518
00:28:43,160 --> 00:28:46,200
Speaker 1: San Francisco to New York, London to Hong Kong. Let's

519
00:28:46,280 --> 00:28:48,120
Speaker 1: check in with our global news team for some of

520
00:28:48,120 --> 00:28:50,600
Speaker 1: the top stories heard on our three hundred affiliate radio

521
00:28:50,680 --> 00:28:56,760
Speaker 1: stations around the world. I'm Steve Poda Scott ten ten

522
00:28:56,840 --> 00:28:59,800
Speaker 1: Wins in New York. We're talking about clothing maker Alpha

523
00:29:00,080 --> 00:29:02,840
Speaker 1: the Street is opening its first brick and mortar store

524
00:29:02,960 --> 00:29:05,960
Speaker 1: up pop up in Soho. I'm calin head Girl bloom

525
00:29:05,960 --> 00:29:08,400
Speaker 1: Big Deby Digital Medio in London. We've been reporting on

526
00:29:08,440 --> 00:29:11,800
Speaker 1: some signs of calm in the UK market after another

527
00:29:11,880 --> 00:29:16,040
Speaker 1: intervention from the Bank of England in guilds using extraordinary

528
00:29:16,120 --> 00:29:19,320
Speaker 1: language on Ginas Servetti in for w c c O

529
00:29:19,400 --> 00:29:22,440
Speaker 1: in Minneapolis. I'm talking about the Mayo Clinic getting a

530
00:29:22,440 --> 00:29:26,200
Speaker 1: one million dollar gift. Um Corney Donahoan Cafe by and

531
00:29:26,240 --> 00:29:29,840
Speaker 1: Omaha Crop Giant car Gil sees developing nations cutting their

532
00:29:29,880 --> 00:29:33,000
Speaker 1: demand for green I'm Scott Carr on w t A

533
00:29:33,200 --> 00:29:35,480
Speaker 1: M in Cleveland. I'm reporting on the hope that a

534
00:29:35,560 --> 00:29:39,320
Speaker 1: post season run by the Guardians translates into better attendance

535
00:29:39,360 --> 00:29:43,000
Speaker 1: at Progressive Field Andree And those are some of the

536
00:29:43,040 --> 00:29:45,880
Speaker 1: stories our twenty seven hundred Bloomberg journalists and analysts are

537
00:29:45,880 --> 00:29:48,280
Speaker 1: working on this morning around the world. It's five thirty

538
00:29:48,360 --> 00:29:51,520
Speaker 1: nine on Wall Street. The following is an editorial from

539
00:29:51,600 --> 00:29:56,920
Speaker 1: Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board.

540
00:29:57,320 --> 00:30:01,520
Speaker 1: Climate changes adding to the danger of severe storms, as

541
00:30:01,600 --> 00:30:06,240
Speaker 1: Hurricane Ian in Florida recently made clear. Yet America's card

542
00:30:06,240 --> 00:30:11,640
Speaker 1: approach to flood insurance discourages responsible choices about what gets

543
00:30:11,680 --> 00:30:15,560
Speaker 1: built and where. When the hybrid public and private insurance

544
00:30:15,560 --> 00:30:21,040
Speaker 1: market meets current disaster relief policy, the result is mispriced risk,

545
00:30:21,440 --> 00:30:26,720
Speaker 1: misallocated investment, and amounting toll of suffering and cost. In essence,

546
00:30:26,760 --> 00:30:30,520
Speaker 1: the government is subsidizing people to live places that put

547
00:30:30,560 --> 00:30:35,040
Speaker 1: them in danger. It's time for a rethink. After climate

548
00:30:35,080 --> 00:30:38,840
Speaker 1: related disasters strike, getting back to normal should no longer

549
00:30:38,920 --> 00:30:42,560
Speaker 1: be the overriding goal. Help the victims to be sure,

550
00:30:42,920 --> 00:30:46,160
Speaker 1: but take actions so that next time there will be

551
00:30:46,440 --> 00:30:49,840
Speaker 1: fewer of them. This editorial was written by the Bloomberg

552
00:30:49,960 --> 00:30:53,400
Speaker 1: Editorial Board. For more Bloomberg opinion, please go to Bloomberg

553
00:30:53,440 --> 00:30:56,720
Speaker 1: dot com, slash Opinion or ope I n go on

554
00:30:56,840 --> 00:31:00,480
Speaker 1: the Bloomberg terminal. This has been Bloomberg Open and listen

555
00:31:00,520 --> 00:31:03,680
Speaker 1: for Bloomberg Opinion editorials every weekday. At this time terminal.

556
00:31:03,720 --> 00:31:06,680
Speaker 1: Customers can read more at O P I n GO.

557
00:31:07,360 --> 00:31:10,120
Speaker 1: Future is following once again. SMP futures down thirty three

558
00:31:10,120 --> 00:31:12,640
Speaker 1: points down, futures down two to thirty eight, NASDAK futures

559
00:31:12,680 --> 00:31:15,479
Speaker 1: lower by ninety nine points. We'll talk about this market

560
00:31:15,480 --> 00:31:22,560
Speaker 1: next with Linda Distle, senior equity strategist at Federated Hermes Bloomberg.

561
00:31:22,560 --> 00:31:25,400
Speaker 1: Eleven three oh weather. Sunshine today, maybe some patchee fog overnight.

562
00:31:25,440 --> 00:31:27,640
Speaker 1: We'll get up to near seventy degrees, mostly sunny, high

563
00:31:27,640 --> 00:31:31,280
Speaker 1: near seventy Tomorrow showers, maybe a thundershower Thursday, with highs

564
00:31:31,320 --> 00:31:34,120
Speaker 1: once again near seventy degrees. Right now fifty three in

565
00:31:34,200 --> 00:31:40,240
Speaker 1: Central Park markets. Headlines and breaking news twenty four hours

566
00:31:40,240 --> 00:31:43,400
Speaker 1: a day at Bloomberg dot Com. A Bloomberg Business Allan

567
00:31:43,560 --> 00:31:53,000
Speaker 1: at Bloomberg Quick Tape, He's a Bloomberg Business Flash and

568
00:31:53,120 --> 00:31:56,680
Speaker 1: I'm Karen Moscow. And stocks are falling, pressured by rising

569
00:31:56,720 --> 00:31:59,640
Speaker 1: treasury yields and signs that company earnings are set to

570
00:31:59,680 --> 00:32:01,880
Speaker 1: diste point e gauge of the dollar climbing to the

571
00:32:01,960 --> 00:32:04,760
Speaker 1: highest this month. Who checked the markets every fifteen minutes

572
00:32:04,760 --> 00:32:07,840
Speaker 1: throughout the trading day on Bloomberg futures are lower, SMP

573
00:32:08,000 --> 00:32:11,200
Speaker 1: futures down thirty six points, now futures down two hundred

574
00:32:11,280 --> 00:32:14,200
Speaker 1: fifty six and NASTAG futures down one hundred six. The

575
00:32:14,320 --> 00:32:16,959
Speaker 1: decks in Germany's down one point three percent, the ten

576
00:32:17,040 --> 00:32:20,680
Speaker 1: year treasury down nineteen thirty seconds three point nine six percent,

577
00:32:20,760 --> 00:32:22,560
Speaker 1: and they yield in the two year four point three

578
00:32:22,600 --> 00:32:25,600
Speaker 1: three percent. Nine X Screwed oil is down two point

579
00:32:25,640 --> 00:32:28,080
Speaker 1: four percent, down two dollars sixteen cents at eighty eight

580
00:32:28,120 --> 00:32:30,960
Speaker 1: dollars ninety nine cents of barrel comes. Gold is down

581
00:32:30,960 --> 00:32:33,600
Speaker 1: a third percent, or five dollars fifty cents at sixteen

582
00:32:33,680 --> 00:32:37,200
Speaker 1: sixty nine fifty announced. The euro point nine six nine

583
00:32:37,280 --> 00:32:39,920
Speaker 1: nine against the dollar. British found one point one is

584
00:32:40,040 --> 00:32:42,960
Speaker 1: zero four one and they en one forty five point

585
00:32:43,040 --> 00:32:45,280
Speaker 1: seven four. And look at a bitcoin, it is down

586
00:32:45,400 --> 00:32:49,600
Speaker 1: one percent, had nineteen thousand dollars. That's of Bloomberg business flash.

587
00:32:49,600 --> 00:32:51,720
Speaker 1: Now here's Michael Barr with more on what's going on

588
00:32:51,800 --> 00:32:54,400
Speaker 1: around the world. Michael Karen, thank you very much. US

589
00:32:54,440 --> 00:32:57,960
Speaker 1: officials are condemning the barrage of Russian missiles that struck

590
00:32:58,000 --> 00:33:01,680
Speaker 1: several cities across Ukraine. Yes to one of Moscow's largest

591
00:33:01,760 --> 00:33:05,479
Speaker 1: attacks in months. President Biden will meet virtually later today

592
00:33:05,520 --> 00:33:09,160
Speaker 1: with members of the G seven, senior administration officials, says.

593
00:33:09,200 --> 00:33:12,280
Speaker 1: The group of world leaders are expected to discuss ways

594
00:33:12,320 --> 00:33:16,960
Speaker 1: to aid Ukraine and continue punishing Russia. Today marks four

595
00:33:17,000 --> 00:33:19,920
Speaker 1: weeks until the critical November mid term elections, which will

596
00:33:19,920 --> 00:33:23,960
Speaker 1: dessign which party controls Congress. US Senate candidates in Ohio

597
00:33:24,280 --> 00:33:27,600
Speaker 1: held their first debate last night. In football, the Chiefs

598
00:33:27,600 --> 00:33:31,000
Speaker 1: meet the Raiders thirty nine. In baseball, Game one of

599
00:33:31,040 --> 00:33:33,760
Speaker 1: the a l Ds begins to night. For the Yankees,

600
00:33:33,800 --> 00:33:37,400
Speaker 1: they play the Guardians. The NHL season begins tonight. The

601
00:33:37,600 --> 00:33:41,040
Speaker 1: Arrangers take on the Lightning global news twenty four hours

602
00:33:41,040 --> 00:33:44,040
Speaker 1: a day on a or and on Bloomberg Quicktake, powered

603
00:33:44,040 --> 00:33:46,880
Speaker 1: by more than twenty seven hundred journalist and analysts in

604
00:33:46,920 --> 00:33:49,360
Speaker 1: more than a hundred twenty countries. I'm Michael Barr, and

605
00:33:49,400 --> 00:33:51,800
Speaker 1: this is Bloomberg. Nathan all right, Michael, thank you. It's

606
00:33:51,800 --> 00:33:54,480
Speaker 1: five forty nine on Wall Street Live from the Bloomberg

607
00:33:54,520 --> 00:33:58,600
Speaker 1: Interactive Brokers studios. This is Bloomberg Daybreak, and we are

608
00:33:58,680 --> 00:34:01,480
Speaker 1: joined now by Linda This all senior equity strategist that

609
00:34:01,600 --> 00:34:05,520
Speaker 1: federated Herme's as we watch yet another sell off on

610
00:34:05,680 --> 00:34:08,600
Speaker 1: Wall Street. Linda, good morning. We may be poised for

611
00:34:08,800 --> 00:34:12,560
Speaker 1: five straight losing sessions for the SMP. Is this market

612
00:34:12,600 --> 00:34:16,839
Speaker 1: pricing in a recession? Yes? Hi, good morning, Athan, Uh,

613
00:34:17,280 --> 00:34:20,319
Speaker 1: great to talk to you today. And is it? Is

614
00:34:20,320 --> 00:34:23,120
Speaker 1: it pricing in a recession? Really not much of a

615
00:34:23,160 --> 00:34:26,560
Speaker 1: recession if at all here in the United States. We

616
00:34:26,600 --> 00:34:29,920
Speaker 1: look at the earnings risk premium, it's generally correlated to

617
00:34:29,960 --> 00:34:32,640
Speaker 1: earnings growth. You had to think that with all the

618
00:34:32,680 --> 00:34:36,440
Speaker 1: concerns are going on out there, that investors would require

619
00:34:36,920 --> 00:34:39,440
Speaker 1: more of a premium to buy stocks. But that really

620
00:34:39,480 --> 00:34:43,840
Speaker 1: hasn't moved that much in recent weeks. So the stock market,

621
00:34:44,600 --> 00:34:47,120
Speaker 1: you know, it's it's going and fits and starts, to

622
00:34:47,120 --> 00:34:51,120
Speaker 1: be sure, and it's still reasonably stronger than what we

623
00:34:51,160 --> 00:34:53,319
Speaker 1: had federated. Hermi's think it will have to end up

624
00:34:53,360 --> 00:34:57,160
Speaker 1: doing before we can, you know, can really find some

625
00:34:57,440 --> 00:35:01,160
Speaker 1: buying bottom, some good some good buying bottom. Here. Where

626
00:35:01,160 --> 00:35:03,439
Speaker 1: are you seeing signs of strength? What are you looking

627
00:35:03,480 --> 00:35:06,840
Speaker 1: for in what particular sectors? Well, you know, if you

628
00:35:06,840 --> 00:35:10,000
Speaker 1: look at the sectors of the stock market and relative

629
00:35:10,120 --> 00:35:12,839
Speaker 1: pees to the stock market in general over the last

630
00:35:12,880 --> 00:35:16,919
Speaker 1: thirty years, still the energy path remained the least expensive

631
00:35:17,000 --> 00:35:19,400
Speaker 1: of them all. Of course, that's where the best earnings

632
00:35:19,400 --> 00:35:22,240
Speaker 1: growth is coming. And if you strip out the strong

633
00:35:22,239 --> 00:35:24,880
Speaker 1: earnings growth from the energy sector, the rest of the

634
00:35:24,920 --> 00:35:28,120
Speaker 1: marketplace is really pretty tepid here in terms of kind

635
00:35:28,120 --> 00:35:31,759
Speaker 1: of maybe looking at a mild economic recession. So to us,

636
00:35:31,800 --> 00:35:35,399
Speaker 1: that's our favorite one, But in general, those those more

637
00:35:35,920 --> 00:35:38,560
Speaker 1: defensive value oriented sectors, the ones that give you the

638
00:35:38,560 --> 00:35:41,680
Speaker 1: good dividend yields. That whole dividend space was ignored for

639
00:35:41,760 --> 00:35:45,239
Speaker 1: five years, so it really looks inexpensive to still, even

640
00:35:45,280 --> 00:35:48,080
Speaker 1: if it's gotten punished a bit in the month of September.

641
00:35:48,920 --> 00:35:51,440
Speaker 1: As this rotation keeps running around back and forth, you

642
00:35:51,440 --> 00:35:54,600
Speaker 1: know where should I whould I sell? M? Should I buy? Yeah?

643
00:35:55,360 --> 00:35:57,960
Speaker 1: I guess some of the rotation, Yeah, I guess some

644
00:35:58,000 --> 00:36:00,279
Speaker 1: of that rotation is being driven, of course by the

645
00:36:00,360 --> 00:36:03,239
Speaker 1: speculation about what the Fed's gonna do, whether we could

646
00:36:03,239 --> 00:36:06,960
Speaker 1: see a pivot toward at least slower interest rate hikes,

647
00:36:06,960 --> 00:36:10,080
Speaker 1: and we continue to get that drumbeat from Federal Reserve

648
00:36:10,120 --> 00:36:12,839
Speaker 1: officials that rates have to stay higher for longer. What's

649
00:36:12,840 --> 00:36:17,040
Speaker 1: your outlook on where rates go from here? Yes? And

650
00:36:17,040 --> 00:36:18,799
Speaker 1: and actually mas and that's kind of what we've been

651
00:36:18,800 --> 00:36:21,800
Speaker 1: saying for months, that Federated Hervey's is higher for longer.

652
00:36:22,200 --> 00:36:25,719
Speaker 1: And I think that the marketplaces has to slowly, slowly

653
00:36:26,200 --> 00:36:29,920
Speaker 1: come to realize that that, you know, whatever that terminal

654
00:36:30,000 --> 00:36:32,799
Speaker 1: rate is, if it's four and a half percent, Uh,

655
00:36:32,840 --> 00:36:34,759
Speaker 1: that's that could be a victory because it might have

656
00:36:34,800 --> 00:36:37,840
Speaker 1: to go five percent and you know, usually you needed

657
00:36:37,920 --> 00:36:41,960
Speaker 1: five percent FED funds to really start to hit employment.

658
00:36:42,200 --> 00:36:45,120
Speaker 1: Employment in this country is just too strong. And we

659
00:36:45,239 --> 00:36:48,640
Speaker 1: talk about rate, but we're not talking enough probably about

660
00:36:48,719 --> 00:36:51,600
Speaker 1: quantitative tightening, which I guess actually is what they're talking

661
00:36:51,600 --> 00:36:54,319
Speaker 1: about over in the United Kingdom just today, you know,

662
00:36:54,440 --> 00:36:57,120
Speaker 1: and uh what that means for liquidity and maybe the

663
00:36:57,200 --> 00:37:00,279
Speaker 1: quantitative tightening maybe they should stop. We might come to

664
00:37:00,280 --> 00:37:02,280
Speaker 1: that point here in the U. S as well, moment

665
00:37:02,800 --> 00:37:06,880
Speaker 1: where the FED needs to stop their tightening campaign. Um

666
00:37:07,080 --> 00:37:10,399
Speaker 1: get as it really starts to hit this economy hard. Yeah.

667
00:37:10,400 --> 00:37:12,239
Speaker 1: I wanted to ask you whether there's a risk that

668
00:37:12,280 --> 00:37:14,759
Speaker 1: the FED goes too far on interest rate hikes. What

669
00:37:14,800 --> 00:37:16,360
Speaker 1: do you think it would take for the FED to

670
00:37:16,960 --> 00:37:21,239
Speaker 1: stop with the interest rate increases? Uh? Yeah, I think

671
00:37:21,239 --> 00:37:24,279
Speaker 1: that the Fed, well, the FED is really focused on

672
00:37:24,520 --> 00:37:28,279
Speaker 1: the unemployment situation in general, not so worried about the

673
00:37:28,400 --> 00:37:32,000
Speaker 1: markets unless there's a financial accident. And I think that's

674
00:37:32,000 --> 00:37:34,880
Speaker 1: what the really the developed markets are on the globe

675
00:37:34,880 --> 00:37:37,880
Speaker 1: we're going to be watching now for the next number

676
00:37:37,880 --> 00:37:42,200
Speaker 1: of months. Is is the weakness that might that might

677
00:37:42,239 --> 00:37:45,400
Speaker 1: show up somewhere? Is it a two strong dollar? Is

678
00:37:45,520 --> 00:37:49,359
Speaker 1: its central banks tightening too much in liquidity? Is not there?

679
00:37:49,360 --> 00:37:53,680
Speaker 1: That whole liquidity idea is really the big concern out there.

680
00:37:54,160 --> 00:37:57,439
Speaker 1: So uh So, you know, FED funds need to keep

681
00:37:57,480 --> 00:38:00,680
Speaker 1: going up and quantity of trying need to happen. But

682
00:38:00,760 --> 00:38:04,200
Speaker 1: if at a moment it looks like there's a financial

683
00:38:04,239 --> 00:38:08,719
Speaker 1: accident on its way in any particular country, they'll probably

684
00:38:08,719 --> 00:38:14,200
Speaker 1: stop on a dime now and reverse that tightening. Well,

685
00:38:14,239 --> 00:38:16,320
Speaker 1: what's it gonna mean for earnings? We've got the kickoff

686
00:38:16,360 --> 00:38:19,040
Speaker 1: of earning season coming up later this week. If we

687
00:38:19,160 --> 00:38:21,960
Speaker 1: continue with this tighter FED cycle and a stronger dollar,

688
00:38:22,080 --> 00:38:25,600
Speaker 1: what's that going to mean for the earnings outlook? That's

689
00:38:25,719 --> 00:38:28,400
Speaker 1: that's really the very interesting kind of the perverse situation

690
00:38:28,440 --> 00:38:31,040
Speaker 1: that we find ourselves in now. It's not it's not

691
00:38:31,160 --> 00:38:33,680
Speaker 1: just the US, but the US as we as we

692
00:38:33,760 --> 00:38:37,960
Speaker 1: look for earning season is extremely highly employed, you know

693
00:38:38,200 --> 00:38:41,360
Speaker 1: are we have record job levers at this moment with

694
00:38:41,760 --> 00:38:44,560
Speaker 1: very low unemployment rate in this country, as we do

695
00:38:44,600 --> 00:38:48,319
Speaker 1: around the world. So we all complain about the costs

696
00:38:48,360 --> 00:38:49,960
Speaker 1: for whatever we want to buy going up and then

697
00:38:50,000 --> 00:38:53,480
Speaker 1: we pay for it. So up until this last quarter,

698
00:38:53,960 --> 00:38:58,960
Speaker 1: corporate America has enjoyed really continued strong earnings growth because

699
00:38:59,080 --> 00:39:02,319
Speaker 1: the margins held up. Margins is starting to slip, and

700
00:39:02,360 --> 00:39:04,640
Speaker 1: that is true, so the earnest growth will start to

701
00:39:04,680 --> 00:39:08,160
Speaker 1: come down and maybe go negative here, but maybe not

702
00:39:08,360 --> 00:39:10,840
Speaker 1: nearly as negative as the rest of the world because

703
00:39:11,200 --> 00:39:14,759
Speaker 1: we're just too strong. I saw a statement just the

704
00:39:14,760 --> 00:39:18,200
Speaker 1: other day. So the economy is weirdly resilient, but we've

705
00:39:18,239 --> 00:39:21,680
Speaker 1: got going on here. It's weird, but it's resilient. So

706
00:39:21,880 --> 00:39:25,239
Speaker 1: there's a very decent chance that earnings could beat expectations

707
00:39:25,280 --> 00:39:28,920
Speaker 1: I see going into this third quarter season. Seven percent

708
00:39:29,200 --> 00:39:33,600
Speaker 1: decline in earnings is the expectation normally that's for and

709
00:39:34,200 --> 00:39:37,279
Speaker 1: usually the market rebounds when you you have an over

710
00:39:37,360 --> 00:39:40,839
Speaker 1: an over reduction. There. Weird but resilient. We'll leave it there.

711
00:39:40,920 --> 00:39:43,520
Speaker 1: Thanks so much Linda for this. Linda distal with us

712
00:39:43,560 --> 00:39:47,400
Speaker 1: this morning senior equity strategist at Federated Hermes, Karen Alli, Nathan,

713
00:39:47,480 --> 00:39:49,959
Speaker 1: thank you. It is five or fifty five on Wall

714
00:39:49,960 --> 00:39:52,680
Speaker 1: Street Time Now for our daily of Bloomberg Law Brief,

715
00:39:52,680 --> 00:39:55,480
Speaker 1: exploring legal issues in the news. And today we're looking

716
00:39:55,480 --> 00:39:58,640
Speaker 1: at Dreamers remaining in limbo after a federal Appeals Corps

717
00:39:58,640 --> 00:40:01,840
Speaker 1: dealt another blow to their legal status. DACA, or Deferred

718
00:40:01,880 --> 00:40:05,879
Speaker 1: Action for Childhood Arrivals, is an Obama era program that's

719
00:40:05,880 --> 00:40:08,799
Speaker 1: preventing a deportation the hundreds of thousands of immigrants brought

720
00:40:08,840 --> 00:40:11,640
Speaker 1: into the US as children, known as dreamers. Now, the

721
00:40:11,640 --> 00:40:13,880
Speaker 1: Fifth Circuit Court of Appeals has ruled that the data

722
00:40:14,000 --> 00:40:17,560
Speaker 1: program contradicts federal immigration law. For more on the issue,

723
00:40:17,600 --> 00:40:21,120
Speaker 1: Bloomberry S Judent Grosso speaks to immigration law expertly on Fresco,

724
00:40:21,200 --> 00:40:23,680
Speaker 1: a partner at Holland and night Lee on the Fifth

725
00:40:23,760 --> 00:40:26,799
Speaker 1: Circuit decision covers a lot of legal territory. Tell us

726
00:40:26,840 --> 00:40:30,000
Speaker 1: about the broad parameters of it. Well. The Fifth Circuit

727
00:40:30,040 --> 00:40:33,960
Speaker 1: decision is very interesting because it mails a lot of

728
00:40:34,000 --> 00:40:38,279
Speaker 1: different concepts solids the one decision. But basically what it

729
00:40:38,400 --> 00:40:42,760
Speaker 1: says is that data is illegal, but we're not gonna

730
00:40:43,080 --> 00:40:46,680
Speaker 1: end doctor today go back District Court and tell us

731
00:40:46,719 --> 00:40:50,440
Speaker 1: whether we're right about the new rule that was issued

732
00:40:50,520 --> 00:40:54,600
Speaker 1: by the federal government while the original doctor case was

733
00:40:54,719 --> 00:40:59,920
Speaker 1: pending changes something so that it makes the program converted

734
00:41:00,120 --> 00:41:03,719
Speaker 1: from being illegal to legal. Does the new rule do

735
00:41:03,800 --> 00:41:07,320
Speaker 1: anything different or does it fail for the same two reasons,

736
00:41:07,400 --> 00:41:10,600
Speaker 1: which are that it contributes the statute and that it

737
00:41:10,680 --> 00:41:14,040
Speaker 1: regulates in a place where they're is that clear regulatory authority?

738
00:41:14,360 --> 00:41:17,399
Speaker 1: And if it does, will strike it then and then

739
00:41:17,400 --> 00:41:19,360
Speaker 1: it will be up to the Supreme Court to determine

740
00:41:19,400 --> 00:41:22,440
Speaker 1: what happens. Sax. It sounds like sending it back to

741
00:41:22,520 --> 00:41:25,160
Speaker 1: the lower court is not a good omen for the

742
00:41:25,280 --> 00:41:29,040
Speaker 1: dreamers because it's a legal question. The Fifth Circuit is

743
00:41:29,080 --> 00:41:33,160
Speaker 1: sending back to the Texas judge to decide, and this

744
00:41:33,239 --> 00:41:38,360
Speaker 1: is a judge who already ruled that data was unconstitutional. Correct.

745
00:41:38,680 --> 00:41:42,440
Speaker 1: What this means is that they're sending back basically the

746
00:41:42,520 --> 00:41:47,560
Speaker 1: same legal questions they just answered in the memo case

747
00:41:47,760 --> 00:41:51,480
Speaker 1: and basically asking the District court does this new regulations

748
00:41:51,760 --> 00:41:55,239
Speaker 1: the rule do anything different than the memos? And if

749
00:41:55,239 --> 00:41:58,200
Speaker 1: it does something different than the memo, tell us that

750
00:41:58,320 --> 00:42:01,319
Speaker 1: maybe then the data we CIPI in the win. But

751
00:42:01,400 --> 00:42:04,680
Speaker 1: if it doesn't, then the dotor recipient bloom And the

752
00:42:04,719 --> 00:42:07,040
Speaker 1: truth of the matter is the whole point of the

753
00:42:07,080 --> 00:42:10,760
Speaker 1: regulation was just to eliminate the notice and common argument.

754
00:42:10,840 --> 00:42:14,160
Speaker 1: It wasn't to change anything else. And so I would

755
00:42:14,200 --> 00:42:19,439
Speaker 1: say with thirty that the District Court and the Fifth

756
00:42:19,480 --> 00:42:23,240
Speaker 1: Circuit are going to invalidate the rule. And as Leon Fresco,

757
00:42:23,280 --> 00:42:25,640
Speaker 1: a partner at Holland and Night speaking with Bloomberg jun

758
00:42:25,680 --> 00:42:28,600
Speaker 1: Grosso catch where that interview plus analysis of the latest

759
00:42:28,680 --> 00:42:31,759
Speaker 1: legal news by subscribing to the Looom Bloomberg Law podcast

760
00:42:31,920 --> 00:42:34,880
Speaker 1: or downloading the show at Bloomberg dot com slash podcast.

761
00:42:35,120 --> 00:42:38,280
Speaker 1: Attorneys can find exceptional legal research and business development tools

762
00:42:38,320 --> 00:42:41,200
Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal

763
00:42:41,280 --> 00:42:44,480
Speaker 1: at b law Go. And our top stories are straight

764
00:42:44,480 --> 00:42:46,160
Speaker 1: ahead and this is Bloomberg