Speaker 1: Live from the Bloomberg Interactive Burgers Studios. Is is is Bloomberg
Speaker 1: day Break for Thursday, October two. Coming up this hour,
Speaker 1: stocks drop. I concerned strong inflation and hawkish monetary policy
Speaker 1: will further hit growth. We hear from two more FETE
Speaker 1: officials about the path of rate heights, Tesla shares fall
Speaker 1: as sales misestimates. Can we take it to London released?
Speaker 1: Trust's government looks close to in floating. Justice Department prosecutors
Speaker 1: believe they have enough evidence to George Donald Trump. Plus
Speaker 1: doctors are concerned about children and R s V. I'm
Speaker 1: Michael bar More Ahead, I'm John Stashtown Sports. The Yankees
Speaker 1: lost Game one of the Alcs and used to the
Speaker 1: Nixon Nets. Both lost their season opening. That's all Train
Speaker 1: ahead on Bloomberg day Break on Bloomberg eleven three, on
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh
Speaker 1: six one, Boston, Bloomberg nine sixties, San Francisco, Sirius XM
Speaker 1: one nineteen and around the world on Bloomberg Radio dot
Speaker 1: Com and via the Bloomberg Business app. And Good Morning.
Speaker 1: I'm Karen Moscow. I'm Nathan Hager Bloomberg Daybreak is brought
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Speaker 1: futures are lower this morning. It is six o one
Speaker 1: on Wall Street, and we check the markets every fifteen
Speaker 1: minutes throughout the trading day on Bloomberg. Right now, SMP
Speaker 1: futures are done about twelve points down. Futures are little change.
Speaker 1: NASDACK futures down seventy or about six tenths of a percent.
Speaker 1: Ten year Treasury down one thirty second yield four point
Speaker 1: one four percent, and they yield on the two year
Speaker 1: four point five eight percent. Nathan, we'll hear in. This
Speaker 1: morning's drop in futures comes after stocks snap the two
Speaker 1: day winning streak on Wall Street. Treasury yields are trading
Speaker 1: your multi year highs on Mountain. Concerned that a hawk
Speaker 1: ish Fed will raise the odds of a hard landing
Speaker 1: market veteran then it's Artman says, don't expect the Fed
Speaker 1: to change course anytime soon. So when once the Fed
Speaker 1: begins to change its policies, it moves rates farther and
Speaker 1: lasts longer than anybody ever wants to anticipate. When they
Speaker 1: when they ease monetary policy, they take rate slower than
Speaker 1: anybody believes for a longer period of time. When they tighten,
Speaker 1: they take rates higher for a longer period of time
Speaker 1: than anybody wants to anticipate. I think it's going to
Speaker 1: be at least until late in maybe four before the
Speaker 1: long awaited pivot occurs. Dennis Gartman, the former publisher of
Speaker 1: the Gartment Letter, thinks stocks will remain in a bear
Speaker 1: market for some time. Well to be another busy day
Speaker 1: for FED speak Nathan, with four different officials talking at
Speaker 1: separate events yesterday. Chicago FED President Charles Evans said he's
Speaker 1: hopeful the current path for interest rates will be enough
Speaker 1: to bring down inflation. Wages are going up, and that's
Speaker 1: not that's not a bad thing, but if it gets
Speaker 1: caught up in costs price uh, you know, spiral, that
Speaker 1: that would be bad. And so making sure that we've
Speaker 1: got monetary policy at a sufficiently restrictive dance so that
Speaker 1: we're not inducing inflation. We're trying to get it down.
Speaker 1: Chicago FED President Charles Evans and his colleagues have aggressively
Speaker 1: raged benchmark interest rates this year from nearly zero to
Speaker 1: just above three percent, and expect another big rate increase
Speaker 1: in next month's meeting. Karen. We spoke about the move
Speaker 1: with St. Louis Federal Reserve Bank President James Bullard. The
Speaker 1: November meeting has been more or less priced in the
Speaker 1: market at at the seventy basis point number. Again, you know,
Speaker 1: I think you do want to wait till you actually
Speaker 1: get to the meeting, see what the situation is there.
Speaker 1: The December meeting is a little farther away. We will
Speaker 1: have more data at that point. St. Louis FED President
Speaker 1: James Bullard made the comments in an exclusive interview with
Speaker 1: Bloomberg's Kathleen Hayes here. More of that conversation coming up
Speaker 1: in minutes here on Bloomberg Daybreak, I'll we turned to
Speaker 1: earnings now, Nathan. We get results from nearly two dozen
Speaker 1: companies in the S and p fon hunry today, disappointing
Speaker 1: numbers from Tesla after the bell has shares down almost
Speaker 1: six perst and this morning sales fell short of estimates,
Speaker 1: and that's being blamed on delivery and production bottlenecks still
Speaker 1: CEEO Elon Musko says demand for his company's cars remains strong.
Speaker 1: Looking forward to a record breaking pupil so it really,
Speaker 1: you know, knock on wood, it looks like we'll have
Speaker 1: an epic end of her. Elon Musk said Tesla could
Speaker 1: repurchase five to ten billion dollars of its shares, subject
Speaker 1: to board approval and review. The stock has lost more
Speaker 1: than a third of its value so far this year.
Speaker 1: It's different story this morning at IBM Karen that stock
Speaker 1: is up about three percent. Company reported better than expected
Speaker 1: sales and affirmed its cash flow forecasts. Analysts say that's
Speaker 1: a signed Demand for software mainframe computers and hybrid cloud
Speaker 1: services remains steady and Asia. Overnight, Nathan stocks fell that
Speaker 1: came off their lowest levels. That's after Bloomberg News reported
Speaker 1: China is considering relaxing quarantine rules. We get the recap
Speaker 1: from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good
Speaker 1: morning Nathan and Karen. The off show you one gained
Speaker 1: from record lows against the gre back on the news. Well,
Speaker 1: China CS three hundred erased earlier losses. Chinese text talks
Speaker 1: in Hong Kong also paired earlier steep losses on news
Speaker 1: China is holding emergency talks with chip firms after US curbs.
Speaker 1: The Ozzy dollar declined as hiring down under almost stalled
Speaker 1: in September, and Japan's benchmark bond yield climbed above the
Speaker 1: Central Banks policy ceiling, prompting monetary authorities to announce an
Speaker 1: unscheduled bond purchase to rain it back in in Singapore.
Speaker 1: Juliet Sally Bloomberg Daybreak, Juliet Banks and Europe. This morning,
Speaker 1: it's all about politics, UK Prime Minister of Liz Trust
Speaker 1: as government could be on the brink of collapse. Let's
Speaker 1: go to London and get the latest with bloombergs You
Speaker 1: and Parts. Good morning You, and good morning Nathan and Karen.
Speaker 1: It has been a chaotic twenty four hours at Westminster.
Speaker 1: One of the most senior members of the British government
Speaker 1: has been fired. As she went, she criticized the Prime
Speaker 1: Minister and accused list Trust of breaking key pledges. Later,
Speaker 1: dramatic scenes in Parliament with the ports of lawmakers man
Speaker 1: handled into voting with the governments. Just weeks after she
Speaker 1: took over. Many members of her own set the policy
Speaker 1: are openly saying they want Liz Trust to go. Who
Speaker 1: would replace a is another question in London. Immuno sin
Speaker 1: by Daybreak very new and thanks now to the latest
Speaker 1: in the war in Ukraine, President Vladimir'szlenski is now urging
Speaker 1: people to use as little electricity as possible. He says
Speaker 1: Russia has destroyed much of the country's power infrastructure with
Speaker 1: Iranian made explosive drones. Ukraine is assembling its own army
Speaker 1: of drones to monitor the front lines. It's enlisted actor
Speaker 1: Mark Hamill to help bring it together through Ukraine's United
Speaker 1: twenty four fundraising arm The Star Wars actor tells Bloomberg
Speaker 1: President Zelenski asked him to join the effort very simply.
Speaker 1: Ukraine needs drones, and you know they define war outcomes.
Speaker 1: They are they protect their land, their people there, They
Speaker 1: monitor the border, their their eyes in the sky. And
Speaker 1: Mark Hamill's spoke of our Washington correspondent Joe Matthew on
Speaker 1: Bloomberg Sound on Catch the show weekdays at five pm
Speaker 1: Eastern on Bloomberg Radio SMP futures right now are down
Speaker 1: ten points. Dal futures are higher now up seven. NASTAC
Speaker 1: futures are lower by sixty nine points ten. Your treasuries
Speaker 1: down two thirty seconds. The yield four point one four.
Speaker 1: Straight ahead your latest local headlines in the check of sports.
Speaker 1: This is Bloomberg six oh seven on Wall Street, forty
Speaker 1: five degrees in Central Park, still dealing with the crash
Speaker 1: westbound Jackie Robinson Parkway Union Turnpike. Michael barrs here with
Speaker 1: Warre on what's going on in New York and around
Speaker 1: the world. Good morning, Michel, Good morning Nathan. A group
Speaker 1: of Justice Department prosecutors believe there is sufficient evidence to
Speaker 1: charge Donald Trump with obstruction of justice. Bloomberg sources say
Speaker 1: they are building other cases as well. Sources say they
Speaker 1: believe all charges should be complete by the end of
Speaker 1: the year. Former President Trump has finished his deposition in
Speaker 1: the case brought by a woman who claims he sexually
Speaker 1: assaulted her and then defamed her online, saying she was
Speaker 1: a liar. Trump has claimed the entire defamation lawsuits should
Speaker 1: be dismissed because he was president and was immune to charges.
Speaker 1: In New York, Trump once again said E. Gene Carroll
Speaker 1: was lying and quote not his type. Former Vice President
Speaker 1: Mike Pence said he would not necessarily vote for Donald
Speaker 1: Trump if he runs for president in twenty four Pence
Speaker 1: has been visiting early voting states, fueling speculation he might
Speaker 1: run for president. At an appearance at Georgetown University, a
Speaker 1: student asked Pence if he would vote for his former
Speaker 1: running mate in the next presidential election. If Donald Trump
Speaker 1: is the Republican nominee for presidents in Twente treunch, fool,
Speaker 1: will you vote for him? Well, there might be somebody
Speaker 1: else I'd prefer more. The former Vice president predicted Republican
Speaker 1: wins in the mid term elections, but took veiled jabs
Speaker 1: at candidates who run on opposition to Democrats without offering
Speaker 1: policy alternatives. Hospitals and that least twenties six states and
Speaker 1: the District of Columbia say they are struggling with an
Speaker 1: early surge in pediatric respiratory illnesses like r S, V
Speaker 1: flu and the common cold. Connecticut Children's Hospital physician in
Speaker 1: chief Dr. Je Salazar says two years of COVID pandemic
Speaker 1: measures may have left kids immune systems unprepared for the
Speaker 1: usual respiratory viruses, which has dramatically altered the normal epidemiology
Speaker 1: of this virus RS specifically, and the other viruses rhinovirus,
Speaker 1: adnavirus and the introvirus which have been We're more severe
Speaker 1: than they normally are. Dr Salazar says the timing is
Speaker 1: off generally. This is something seen in late winter early spring.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalists and analysts more than a hundred twenty countries. Michael
Speaker 1: bar this is Bloomberg, Nathan, Thanks Michael, six o nine
Speaker 1: on Wall Street. Time for the Bloomberg sport stuff they
Speaker 1: brought you by Fry State OUTI. Here's John Stansharks. All right, Nathan,
Speaker 1: the Alcs underway and Houston. Good start for the Yankee.
Speaker 1: Seconding home run for Harrison Vader, who kids you just
Speaker 1: to provide surprising power, his fourth homer of the postseason.
Speaker 1: Astros tied it up. Game one was one one, sixth
Speaker 1: inning OH two and Garry L. Cranks it's left. Stanton
Speaker 1: is going back at the wall looking up silet UTAs
Speaker 1: and the Astros leading to the one they'll pitch to McCormick.
Speaker 1: It's ash rise is pretty deep to right center. Touch
Speaker 1: is going back at the wall. Look it up. It's
Speaker 1: a good bye. Chas McCormick ghost teach the Astros go up.
Speaker 1: K b Amy both homers off Clark Schmidt inning later,
Speaker 1: Jeremy Painia homer off Frankie Montas Astro's one four to
Speaker 1: fromain unbeaten the postseason. Justin Verlander gave up the Bader
Speaker 1: home run, but only two other hits. He struck out eleven.
Speaker 1: The Astros of the team struck the Yanks out seventeen times.
Speaker 1: Game two is tonight. Luis Sevareino on him on for
Speaker 1: the yankst San Diego. The Phillies, having won the NLCS
Speaker 1: opener to nothing, led for nothing, but the Podres came
Speaker 1: back to win eight to five or five on fifth
Speaker 1: and ain't one. Soto had a big hit, so did
Speaker 1: Padres Capcher Austin Nola. He was facing his brother Nix
Speaker 1: and Nets lost their openers in different fashion. Tight game
Speaker 1: in Memphis after the Knicks rally from nineteen down, but
Speaker 1: the Grizzlies one in overtime one fifteen to one twelve.
Speaker 1: John Moran thirty four points. Julius Randall led the Knicks
Speaker 1: with twenty four gruff opener for R. J. Barry shot
Speaker 1: three of eighteen and in Brooklyn and Kyrie Irving was
Speaker 1: six of nineteen. Pelicans all over the next one thirty
Speaker 1: to one oh eight. Zion Williamson back from New Orleans.
Speaker 1: He scored twenty five. John's dash are Bloomberg Sports nank okay, John,
Speaker 1: thank you? Has it be? Futures down down thirteen point
Speaker 1: staff futures lower again, They're down fifteen points. Dance next,
Speaker 1: Futures leading the declines. UH down seventy nine points now
Speaker 1: for a drop of seven tenths of one. The ten
Speaker 1: year treasuries down three thirty seconds, yield four point one
Speaker 1: four percent yield on the two year right now four
Speaker 1: point five eight. You're listening to Bloomberg Daybreak. The Bloomberg
Speaker 1: Sports Report was brought to you by Audie. Don't let
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Speaker 1: news twenty four hours a day at Bloomberg dot com,
Speaker 1: The Bloomberg Business at and at Bloomberg Quick Tape is
Speaker 1: a Bloomberg business flash, and I'm Karen Moscow. European stocks
Speaker 1: and US DOT Index futures are lower amid rising bond yields,
Speaker 1: with investors concerned that strong inflation and hawkish monetary policy
Speaker 1: will further slow the global economy. We check the markets
Speaker 1: every fifteen minutes throughout the trading day on Bloomberg. Right now,
Speaker 1: U s and P futures are down about thirteen points down.
Speaker 1: Futures are little changed, and as DAGG futures are down
Speaker 1: seventy six, down about seven tents of upper set. The
Speaker 1: decks in Germany is down about eight tens of upper cent,
Speaker 1: and your treasury down to thirty seconds yield four point
Speaker 1: one four percent, the yield on the two year four
Speaker 1: point five eight percent. Nimex screwed oil up one point
Speaker 1: seven percent of a dollar forty three at eighty six
Speaker 1: dollars ninety eight cents of barrel comic scold up two
Speaker 1: tens per cent or three dollars sixty cents at sixteen
Speaker 1: thirty seven ninety ounce. The euro point four against the dollar,
Speaker 1: British found one point one two oh one and the
Speaker 1: end one forty nine point eight four and bigit coin
Speaker 1: is down a quarter percent. It's at nineteen thousand, one
Speaker 1: hundred fifty dollars. That's a Bloomberg Business Flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world.
Speaker 1: Michael Karen, thank you very much. Russia has declared its
Speaker 1: intention to increase its targeting of Ukraine's power, water, and
Speaker 1: other vital infrastructure in its latest phase of the nearly
Speaker 1: eight month old war. Ukrainian President volodimir's Lensky says that
Speaker 1: Moscow's forces have the story thirty percent of the country's
Speaker 1: power stations since October ten. In baseball, the Yankees lost
Speaker 1: Game one of the ALCS against the Astros. In the NLCS,
Speaker 1: Padres even the series at a game of piece after
Speaker 1: beating the Phillies eight five. NBA mix nets lost their
Speaker 1: season openers the Wizards. One Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven hundred journalists and analysts in more
Speaker 1: than one hundred twenty countries. I'm Michael Barr, and this
Speaker 1: is Bloomberg. Nathan. Thanks Michael. Six nineteen on Wall Street
Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: Daybreak and now we want to bring you our exclusive
Speaker 1: interview with St. Louis Federal Reserve President Jim Bullard. Bloomberg's
Speaker 1: Kathleen Hayes sat down with Bollard yesterday for a conversation
Speaker 1: about inflation and the FEDS rate hike path. They talked
Speaker 1: about the data the FEDS considering in its inflation fight,
Speaker 1: what's to come at next month's f o MC meeting,
Speaker 1: and why twenty three could be eight deflation every year
Speaker 1: let's listen in It seems like every time we get
Speaker 1: together there's something in the background, there's something big going on,
Speaker 1: and I would say this time it is the fact
Speaker 1: that the latest inflation in data have been disappointing. You've
Speaker 1: done three hundred basis points of rate highs since March.
Speaker 1: The headline CPI is stalling out just over eight percent
Speaker 1: year over a year, core number continuing to rise, and
Speaker 1: the employment market still tight in terms of jobs and
Speaker 1: the economy not slowing down. So what's gone wrong? All
Speaker 1: those rate highs? What have they done? Uh? Well, I
Speaker 1: do think they will have an impact and in some
Speaker 1: ways have had an impact I would cite the housing
Speaker 1: market in particular where it appears left. Uh, you know,
Speaker 1: increase in rates has has really changed the dynamics there.
Speaker 1: So that's someplace that I would say they are not
Speaker 1: long and variable legs there. You know, that market anticipated
Speaker 1: fed moves that before they were even in train the spring,
Speaker 1: and so that that's a place where we've seen impact
Speaker 1: right away. But you know, it's a big ship and
Speaker 1: it takes a while to steer the ship. And so
Speaker 1: the housing market is not the whole economy. So it
Speaker 1: certainly isn't and it's certainly not the main one of
Speaker 1: the main things driving inflation. Now. Of course, prices have fallen,
Speaker 1: but our rents are important though they certainly aren't. They
Speaker 1: certainly aren't. And in fact, that's one reason why people
Speaker 1: are so worried about inflation staying high. Next here is
Speaker 1: that those rents are the way they are calculator, they're
Speaker 1: gonna spread out over several months. Yeah, but we're aware
Speaker 1: of the legs and the calculation, and so we'll take
Speaker 1: that on on board and take a look at that.
Speaker 1: But yeah, you're right, the core measure of PC inflation
Speaker 1: is still on the high fours, and the Dallas Fed
Speaker 1: trim mean four point seven five or so UM, so
Speaker 1: pretty high inflation in the US, even if you try
Speaker 1: to trim out some of the more volatile components. So
Speaker 1: we're gonna have to get that turned around, moving in
Speaker 1: the right direction back towards two percent. You know, there's
Speaker 1: an old actiment monitory policy, especially when you have inflation
Speaker 1: like this that's very high, that hasn't cooled off, that
Speaker 1: to get it under control, you have to get the
Speaker 1: funds rate above the rate of inflation. You're pretty far
Speaker 1: from there now. Another reason to think that maybe again
Speaker 1: that the tell of risks here is that you're going
Speaker 1: to have to do more. Some people are talking about
Speaker 1: five percent and have been for a while. If we
Speaker 1: get driven to that, it will be because of the data.
Speaker 1: I mean, the markets are expecting inflation to fall. We've
Speaker 1: been expecting inflation to fall. I've been expecting inflation to fall,
Speaker 1: and it hasn't so far. But I think in the
Speaker 1: first half of three that's still the expectation. And so
Speaker 1: you will get to some point where inflation has come
Speaker 1: down some and and you might get to this situation
Speaker 1: where the policy rates above the inflation rate. Is one
Speaker 1: of the reasons that you are still, you know, looking
Speaker 1: betting on this this inflation coming down is and not
Speaker 1: having to the rate move the rate a lot more
Speaker 1: restricted is because you're gonna stay aggressive with great heights
Speaker 1: right now. Uh, seventy five basis points uh in November,
Speaker 1: and then there's seventy in December. I know you don't
Speaker 1: like your prejudge meetings. However, if you look at how
Speaker 1: the factors are stacking up, is that a likely outcome
Speaker 1: in terms of what you're going to vote for? The
Speaker 1: November meeting has been more or less priced in the markets.
Speaker 1: Uh at at the seventy five basis point number. Again,
Speaker 1: you know, I think you do want to wait till
Speaker 1: you actually get to the meetings, see what the situation
Speaker 1: is there. The December meetings a little farther away, we
Speaker 1: will have more data at that point. I don't want
Speaker 1: to prejudge exactly. UH. You know what I'd what i'd
Speaker 1: support at that meeting. Uh. And then in I think
Speaker 1: we'll be closer to the point where we can run
Speaker 1: what I would call ordinary monetary policy or an uh
Speaker 1: A monetary policy where now you're at the right level
Speaker 1: of the policy rate, you're putting downward shround inflation, but
Speaker 1: you can adjust as the data come in in three
Speaker 1: and so I think up to now we've been uh,
Speaker 1: you know, we started off at a very low level.
Speaker 1: That's why we've moved so fast, so far, so quickly.
Speaker 1: But at some point we'll get to a level that
Speaker 1: the Committee judges will be sufficient to put meaningful downward
Speaker 1: pressure on inflation. Then we'll be able to adjust from there.
Speaker 1: Not that there wouldn't be further adjustments, but they would
Speaker 1: be dated. They would be more based on the data
Speaker 1: coming in, as opposed to us trying to get off
Speaker 1: zero enough to some level that's reasonable. That was St.
Speaker 1: Louis FED President James Bullard speaking with Bloomberg's Kathleen Hayes.
Speaker 1: You can catch the full interview on Bloomberg dot com
Speaker 1: or on the Bloomberg terminal. Right now, SMP futures are
Speaker 1: down eleven points. Now. Futures have been swinging between gains
Speaker 1: and losses this morning. Right now they're up by three points.
Speaker 1: NASDAC future is still lower, down sixty five points ten.
Speaker 1: Your treasuries down to thirty seconds, the yield four point one.
Speaker 1: This is Bloomberg Bloomberg eleven three oh weather, sunny, breezy,
Speaker 1: upper fifties. That's all we'll get to today, low sixties,
Speaker 1: sunshine Tomorrow, milder Saturday, the hind near seventy degrees, low
Speaker 1: sixties Sunday with showers moving in right now forty four
Speaker 1: in Central Park. Broadcasting live from the Bloomberg Interactive Broker's
Speaker 1: studio in New York. Bloomberg E Living Free On to Washington,
Speaker 1: d C. Bloomberg On to Boston, Bloomberg one O six one,
Speaker 1: to San Francisco, Bloomberg nine sixty to the country Sirius
Speaker 1: XM Cho one nineteen and around the globe the Bloomberg
Speaker 1: Business apt in Bloomberg Radio dot com. This is Bloomberg
Speaker 1: Daybreak six thirty on Wall Street. Good morning, I'm Nathan
Speaker 1: Hager and I'm Karen Moscow, and we're just about three
Speaker 1: hours away from the open of US training time to
Speaker 1: the five Things so you need to notice start your
Speaker 1: day to you buy Interactive Brokers. Interactive Brokers charges margin
Speaker 1: loan rates from three point five eight percent to four
Speaker 1: point five eight per cent rates subject to change. Learn
Speaker 1: more at ibkr dot com. Slash compare up first markets
Speaker 1: enter today after stock snapped a two day winning streaky Yesterday,
Speaker 1: concerns continue to swirl about hawk ish FED policy. Silver
Speaker 1: Crest head of Investment Policy Robert Teeter says timing will
Speaker 1: be everything. The timeline question, I think is in focus
Speaker 1: here and it's a matter of do we get inflation
Speaker 1: under control? Do we get the Fed pausing before you
Speaker 1: start to see some of that pass through, whether it's
Speaker 1: lagged effects or otherwise, onto the consumer and onto earnings.
Speaker 1: And so that's really the race that's in place right
Speaker 1: now is which happens first, the break in inflation or
Speaker 1: a break in the economy. Robert Teeter with Silver Crust
Speaker 1: Asset Management says, if consumer spending says strong, it will
Speaker 1: help the Fed bring down inflation. And today I'll be
Speaker 1: another busy one for FED speakers, Karen. Four different officials
Speaker 1: or at separate events today yesterday are Kathleen Hayes sat
Speaker 1: down with St. Louis FED President James Bullard, who indicated
Speaker 1: there's still no clue your timeline for a FED pivot.
Speaker 1: We started off at a very low level. That's why
Speaker 1: we've moved so fast, so far, so quickly. But at
Speaker 1: some point we'll get to a level that the Committee
Speaker 1: judges will be sufficient to put meaningful downloard pressure on inflation,
Speaker 1: then we'll be able to adjust from there. Catch our
Speaker 1: full interview with St. Louis President James Bullard on Bloomberg
Speaker 1: dot com or on the Bloomberg terminal. The Fed gets
Speaker 1: another key data point this morning, with weekly jobless claims
Speaker 1: due out at eight thirty am. All Street Time. Let's
Speaker 1: turn earnings now, Nathan. Nearly two dozen companies in the
Speaker 1: U S and P five port today anytime shares a.
Speaker 1: Tesla down five and a half percent after sales game
Speaker 1: insured of estimates. Still, CEO Elon Must said demand remains strong.
Speaker 1: Desmite bottlenecks. There were enough trains, there were enough car carriers.
Speaker 1: Do you actually support the wave? Has it got too big?
Speaker 1: CEO Elon Must said Tesla could repurchase up to ten
Speaker 1: billion dollars of it share, subject to board approval and review.
Speaker 1: It's a different story at IBM this morning, Karen, that
Speaker 1: stock is up about three percent after reporting better than
Speaker 1: expected sale and affirming its cash flow forecast. Now we're
Speaker 1: in Europe today, Nathan, UK Prime Minister list Trust's government
Speaker 1: could be on the brink of collapse. Trust fired one
Speaker 1: minister over security breach, and two others were heard resigning
Speaker 1: before reserving that decision. There are growing calls from her
Speaker 1: party for Trust to resign immediately. And that's the five
Speaker 1: things that you need to know to start your day,
Speaker 1: brought to you by Interactive Brokers. SMP futures are down
Speaker 1: seven points right now down, futures remain little change and
Speaker 1: nowsday futures down fifty one. Straight ahead your latest local
Speaker 1: headlines plus the check of sports. And this is Bloomberg
Speaker 1: Experience six thirty three on Wall Street, forty four degrees
Speaker 1: in Central Park, out of crash in the outbound lower
Speaker 1: level of the George Washington Bridge. And Michael Barr is
Speaker 1: here with more on what's going on in New York
Speaker 1: and around the world. Good morning, Michael, Good morning Nathan.
Speaker 1: A group of Justice Department prosecutors believe there is sufficient
Speaker 1: evidence to charge Donald Trump with obstruction of justice, Bloomberg,
Speaker 1: said Baxter. As the story, prosecutors and FBI involved in
Speaker 1: the investigations further, Department of Justice feel there is now
Speaker 1: enough evidence to move forward with a case for obstruction.
Speaker 1: Bloomberg sources say they are building other cases though as well,
Speaker 1: but are looking at all the angles before moving forward
Speaker 1: on them. The sources say they feel all charges should
Speaker 1: be complete by the end of the year, and if
Speaker 1: nothing else, they can proceed with obstruction. In San Francisco,
Speaker 1: I'm at Baxter Bloomberg Daybreak, former Vice President Mike Pence
Speaker 1: more in conservatives against embracing populism in upcoming elections. In
Speaker 1: the speech at the Conservative Heritage Foundation in Washington, d C.
Speaker 1: Pence made some veiled critiques, apparently taking jabs at midterm
Speaker 1: candidates who rally around former President Trump's unfounded claims of
Speaker 1: a stolen twenty twenty election. I think the American people
Speaker 1: are gonna be looking to looking to Republicans in these
Speaker 1: new majorities, and they're gonna be looking for results, not posturing,
Speaker 1: not just going on television shows and saying what's wrong
Speaker 1: with the decided to saying here's what we're for, here's
Speaker 1: what we're passing. Former Vice President Pence has been visiting
Speaker 1: early voting states, fueling speculation he might run for president.
Speaker 1: President Biden is back campaigning again today, this time in Pennsylvania,
Speaker 1: where one race could decide which party controls the U. S.
Speaker 1: Senate next year. The President is heading to Pittsburgh Democratic
Speaker 1: Senate candidate John Fetterman will join him. In addition to
Speaker 1: the flu and COVID, there's another illness kids should be
Speaker 1: mindful of. It's called r s V. It causes running noses,
Speaker 1: decrease in appetite, coughing, sneezing, fever, and wheezing. Yale You
Speaker 1: Health University Pediatric infectious diseases specialists Dr Thomas Murray says
Speaker 1: COVID has weakened kids immune systems, not because of the
Speaker 1: virus itself, but because kids have been isolated for so long.
Speaker 1: I think their new system just hasn't seen the number
Speaker 1: of viruses a typical child prior to the pandemic would
Speaker 1: have seen. And therefore, when you have five or six
Speaker 1: different IRUs, says, you can become sick with one right
Speaker 1: after the other. Dr Murray says RSV is straining the
Speaker 1: hospital system. Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quittake, powered by more than twere
Speaker 1: journalists and analysts more than a hundred twenty countries. Michael Barr,
Speaker 1: this is Bloomberg, Nathan. Thanks Michael. Almost six thirty six
Speaker 1: on Wall Street time for the Bloomberg Sports Up they
Speaker 1: brought to you by Tri State out. He here's John
Speaker 1: Stenshawn all right, a for the Houston Astros in the
Speaker 1: America League Championship Series for the sixth year in a
Speaker 1: row that includes two a LCS wins over the Yankees.
Speaker 1: Astros made it to the World Series last year without
Speaker 1: the injured Justin Verlander. Back at age thirty nine, he
Speaker 1: had a brilliant regular season and in Game one in Houston, Verlander,
Speaker 1: when six innings allowed just three hits, struck out eleven
Speaker 1: at one point six in a row. The Astros hit
Speaker 1: three solo home runs off the Yankee bullpen, and they
Speaker 1: beat the Yanks four to two. After Verlander left, the
Speaker 1: Houston bullpen added six more strikeouts, so they had seventeen
Speaker 1: for the game. And Aaron Judge well aware of how
Speaker 1: good the Astros pitching. He got a great staff of
Speaker 1: you know that's out the bottom. Um tell they got
Speaker 1: great arms out of the pen. You know that can
Speaker 1: are effected on both sides of the plate, righty's and
Speaker 1: left ees. And you know, I starting pitchers that can work.
Speaker 1: You know, not only one two pictually, but you know
Speaker 1: mixing you know, three or four pitches. So it's uh,
Speaker 1: it's a tough matchup. That's you know, you want to
Speaker 1: play against the best. You want to compete against the best.
Speaker 1: So we got in front of us. Judge made a
Speaker 1: terrific catch in right field, saving a couple of runs,
Speaker 1: but the Yanks squandered some early scoring chances. They also
Speaker 1: at the time run on in the eighth Matt Carpenter
Speaker 1: and Josh Donaldson in particular had rough nights. They combined
Speaker 1: to strike out seven times. Game two tonight, the NLCS
Speaker 1: tied at one. Padres came from four nothing down beat
Speaker 1: the Phillies eight to five. The next open the season
Speaker 1: in Memphis, trailed by nineteen, came back. A Cam Reddish
Speaker 1: three pointer sent the game to overtime. Reddish, at his
Speaker 1: best game as a nick twenty two points off the bench,
Speaker 1: but the Grizzlies one one fifteen to one twelve. John
Speaker 1: Brant scored thirty four Nick said. Their home opener to
Speaker 1: Marrow at Barkley's, All Pelicans blew out the Nets one
Speaker 1: thirty to one. Oh Ay, Kevin Durant led Brooklyn with
Speaker 1: thirty two d Dash sports John thanks sixty seven on
Speaker 1: Wall Street. Time to take a look at stock some
Speaker 1: of the names moving in the pre market. Lots to
Speaker 1: get to this morning with Bloomberg Radio on TV markets
Speaker 1: correspondent Creety Goopta, including A T and T just coming
Speaker 1: in with better than expected earnings. Creaty, Yeah, and a
Speaker 1: beat that's showing up in the stock fairly quickly. Let
Speaker 1: let Tiger here is just the letter t uh. The
Speaker 1: shares popped up over two percent. They've not paired that
Speaker 1: gain to two percent. But to your point, Nathan, they
Speaker 1: did beat those earnings. And this is such an important
Speaker 1: time because last quarter, on the previous course, A T
Speaker 1: and T and Verizon, we're both talking about kind of
Speaker 1: a slowdown in consumer demand. This time around A T
Speaker 1: and T showing a little bit of resilience. They're saying
Speaker 1: that they saw not only a profit beat, but a
Speaker 1: subscriber beat as well. That's becoming the number three US
Speaker 1: wireless carrier. And get this, they added nine hundred and
Speaker 1: sixty four thousands subscribers in the third quarter of the
Speaker 1: estimate was only nine hundir teen thousand, So actually doing
Speaker 1: better at a time when perhaps a lot of people
Speaker 1: are pulling back. Yeah, I've still gotta call people, right,
Speaker 1: We still got to talk about Tesla as well, because
Speaker 1: those earnings did disappoint and the shares are are getting
Speaker 1: punished for it. Do people still call people, Nathan, I
Speaker 1: don't know that. I don't think I've been on a
Speaker 1: phone call texts. Oh they do do that. That's true,
Speaker 1: that no one writes letters anymore, almost speaking of a
Speaker 1: slowdown in demand or at least a little bit of
Speaker 1: scare in demand. Tesla shares t s l A down
Speaker 1: about five and a half percent. They actually did miss
Speaker 1: their earnings, and Elon Must specifically said the demand is
Speaker 1: quote a little harder to come by, so almost a
Speaker 1: pretty similar theme that you are seeing when it comes
Speaker 1: to a T and T shares for example. But Tesla,
Speaker 1: what's interesting here is a massive heavyweight in the s
Speaker 1: MB five dred in the nastack as well. Their third
Speaker 1: core sALS. They did rise about fifty percent, but the
Speaker 1: estimates were high. The expectations were high. To me, what
Speaker 1: there is crucial here is that they're expecting to come
Speaker 1: up just short a fifty percent of delivery growth. So
Speaker 1: the growth is still there. The pace of growth is
Speaker 1: the problem, and that's what is pressuring the shares this morning.
Speaker 1: And I want to go to Alcoha here a A
Speaker 1: is the taker. This is the aluminum giant reporting worse
Speaker 1: than expected results in the third quarter. I remember this
Speaker 1: is something you're seeing in the commodity space broadly. Those
Speaker 1: shares are thinking about ten percent in the pre market.
Speaker 1: I'm gonna go the speed around here because it's just
Speaker 1: so many to get through. Ally, financial, we talked about
Speaker 1: this a little bit yesterday. This is one of the
Speaker 1: largest auto lending companies in the country. They missed their
Speaker 1: earnings yesterday. Today they are downgraded by Morgan's down Stanley
Speaker 1: a l l wise or tickers down about two and
Speaker 1: a half percent in the pre market, where is the
Speaker 1: only downgrading the company to an equal weight from an
Speaker 1: overweight based on those third quarter results. Essentially, they warn
Speaker 1: Nathan that they actually have to are worried about building
Speaker 1: out their credit provisions because they think auto lending is
Speaker 1: going to collapse in America once again, because of that
Speaker 1: overarching theme that things are going to get bad. A
Speaker 1: recession is on the horizon. Yeah, and lots more to
Speaker 1: get to as we get through this earning season. I
Speaker 1: think we have quite a few lightning rounds, aren't we.
Speaker 1: With Bloomberg Radio and TV Markets correspondent Creety Goop, does
Speaker 1: we keeping on what's happen pending in the pre market?
Speaker 1: Stocks as a whole turning mixed. SMP future is now
Speaker 1: little changed. Dow futures are higher now by fifty points.
Speaker 1: NASAC futures still lower, but not quite by as much,
Speaker 1: down thirty three. You're listening to Bloomberg Daybreak and the
Speaker 1: Bloomberg Sports Report was brought to you by Audie. Don't
Speaker 1: let someone else drive off in the autie model. You've
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Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com.
Speaker 1: A Bloomberg business outland at Bloomberg Quick Take, He's a
Speaker 1: Bloomberg business lash and I'm ter in Moscow, and futures
Speaker 1: are little change. Now we go to the first word
Speaker 1: breaking news dash for today's morning call. Here's vill Maloney, Bill,
Speaker 1: Good morning, Hey, good morning, Karen. US futures are trading
Speaker 1: mixed right now. Death futures up sixty six points. Sesapes
Speaker 1: are a little changed and as that futures are lower
Speaker 1: by thirty the US ten yeld at four point one
Speaker 1: one percent, gold is up four oil is climbing, and
Speaker 1: bitcoin is down by point two percent. Hong Kong fell
Speaker 1: one point four percent overnight, while eup markets are trading
Speaker 1: mixed this morning and back in the US on the
Speaker 1: economic Frinday thirty initial jobs claims the Philly Fed and
Speaker 1: at ten o'clock existing home sales after the Bellas night
Speaker 1: TESTA sales missed estimates, shares it down five and a
Speaker 1: half percent pre market, and IBM sales toped estimates regarding earnings.
Speaker 1: This morning, a T and T profit and subscriber numbers beat.
Speaker 1: In other news, Elon must says he's obviously overpaying for
Speaker 1: Twitter and a deal news Philip Morris raised it's offered
Speaker 1: by Sweetish Match to fifteen point eight billion. Wrapping things up,
Speaker 1: Northern Trust was cut to hold joy Jabank ally Financial
Speaker 1: cut the equate at Morgan Stanley and Oracle was raised
Speaker 1: to neutral over Red Piper Live from the first Breaking
Speaker 1: News deskm B Maloney, Karen, all right, Bill, thank you
Speaker 1: and to hear live breaking news over your Bloomberg type
Speaker 1: squawk on your terminal s q U A w K
Speaker 1: and that's a Bloomberg Business Flash. Now here's Michael Barr
Speaker 1: with more on what's going on around the world. Michael Karen,
Speaker 1: thank you very much. Starting today, Russian President Putin has
Speaker 1: declared martial law and the four border regions of Ukraine
Speaker 1: and Russia illegally annexed, giving authorities they're more power to
Speaker 1: crackdown on the population. This has Ukraine braces today for
Speaker 1: four hour blackouts in response to recent Russian missile and
Speaker 1: drone attacks on the country's power infrastructure. Liz Trust's UK
Speaker 1: premiership is on the brink of collapse. Tory MPs openly
Speaker 1: said she should go a tumultuous day in Parliament. Yesterday
Speaker 1: saw Trust fire as Senior Minister. In baseball, the Yankees
Speaker 1: lost Game one of the a l c S against
Speaker 1: the Astros four two. In the NLCS, the Padres even
Speaker 1: the series of the Game of Peace after beating the
Speaker 1: Phillies eight five. In the NBA, the Next and Nets
Speaker 1: lost their season openers the Wizards. One Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalist analysts in
Speaker 1: more than a hundred twenty countries. I'm Michael Barr. This
Speaker 1: is Bloomberg. Karen all right, Michael, thank you. It is
Speaker 1: sixty nine on Wall Street. Returned to news and science
Speaker 1: and Technology now with a Bloomberg and j I T
Speaker 1: STEM report brought to you. Buy New Jersey Institute of
Speaker 1: Technology n j I T makes transferring easy. Leverage your
Speaker 1: associate's degree into a STEM focused bachelor's Learn more at
Speaker 1: n j I T dot E d U slash transfer.
Speaker 1: Here's US making news and science, technology, engineering, and math.
Speaker 1: Bloomberg News has learned Chinese officials are debating whether to
Speaker 1: reduce the amount of time people coming into the country
Speaker 1: must spend in mandatory quarantine. Sources say bureaucrats are looking
Speaker 1: at cutting the quarantine period to two days in a
Speaker 1: hotel and then five days at home. Currently, China requires
Speaker 1: ten days of isolation. The Bill and Melinda Gates Foundation
Speaker 1: is making grants of more than a billion dollars as
Speaker 1: part of a sweeping national plan to improve math education
Speaker 1: the next four years. It's goal to help students land
Speaker 1: well paying jobs. Given research that shows the connection between
Speaker 1: strong math skills and career success. The foundations said that
Speaker 1: to put more money into math. It will cut grants
Speaker 1: to other subjects like reading, writing, and the arts. And
Speaker 1: this may not be a surprise, but it's costing you
Speaker 1: more money for your early morning meal. In England, a
Speaker 1: breakfast which consists of sausages, bacon, eggs, bread, butter, tomatoes, mushrooms, milk,
Speaker 1: tea and coffee is more expensive than a year ago.
Speaker 1: According to the latest Bloomberg Breakfast Index, coffee is about
Speaker 1: twenty two percent, milk has lived from a year ago well,
Speaker 1: butter has increased twenty seven percent, and eggs have gained
Speaker 1: twenty three And as the Bloomberg and j I. T
Speaker 1: Stem report, Nathan's if there weren't enough turmoil in the UK,
Speaker 1: thank you, Karen. We are live from the Bloomberg Interactive
Speaker 1: Broker Studios or at six fifty one on Wall Street
Speaker 1: Time Now to check what's going on in d C or.
Speaker 1: Some of the tough stories include President Biden hinting it
Speaker 1: more oil releases to had gas prices, the January six
Speaker 1: Committee to get Eastman emails showing likely fraud, and President
Speaker 1: Biden heading to battleground Pennsylvania today with the control of
Speaker 1: the Senate in the balance, joining US now from another
Speaker 1: mid term battle ground, Ohio is Boomberg. Government congressional reporter
Speaker 1: Jack Fitzpatrick. I'd love to get to what you're doing
Speaker 1: when it comes to the mid term races, Jack, but
Speaker 1: let's start with what's happening in d C, including this
Speaker 1: announcement of a final tranche of releases from the Strategic
Speaker 1: Reserve and President Biden saying even more maybe coming. Of course,
Speaker 1: this is coming less than three weeks before a mid
Speaker 1: term election. Yeah, and that has led to some some
Speaker 1: responses from Republicans saying this, uh, their their concerned, this
Speaker 1: is politically motivated, and it's a kind of convenient timing
Speaker 1: to use a national asset such as the Strategic Petroleum
Speaker 1: Reserve uh to try to drive down gas prices uh
Speaker 1: so close to the election. But the President has said
Speaker 1: he he's told his team at the White House, in
Speaker 1: his words, to be prepared to look for further releases
Speaker 1: UH if needed. So he didn't put out too much
Speaker 1: of a specific plan beyond this next fifteen million barrels.
Speaker 1: He announced that release from the U S reserves and
Speaker 1: is still sort of leaving open the option for more.
Speaker 1: Of course, we have seen gas prices in a lot
Speaker 1: of the country go down from their highs over the
Speaker 1: last year or so, but still relatively high. And uh,
Speaker 1: it is I guess a political liability for a lot
Speaker 1: of Democrats and the President. Yeah, particularly when we're this
Speaker 1: close to an election. Here are is the White House
Speaker 1: still keeping the door open to a fuel export band.
Speaker 1: That's something that could have some serious implications as well. Yeah,
Speaker 1: they have not ruled that out. Um. The Brian Deese
Speaker 1: was asked about that on Bloomberg TV. Uh. He cited
Speaker 1: that the uncertainty around the situation around the global supply
Speaker 1: of petroleum products. So the export band is another, uh,
Speaker 1: you know, more of a significant measure, um, that they
Speaker 1: have on the table, more significant than just an SPR
Speaker 1: reserve release. And that is something that at least for now,
Speaker 1: they have not ruled out. All right, let's turn to
Speaker 1: another pretty significant story out of the nation's capital having
Speaker 1: to do with the January six Committee and a federal
Speaker 1: judge talking about potential evidence of criminal activity by the
Speaker 1: former president. Yes, so there's a U. S. District judge
Speaker 1: who ordered the disclosure of more documents. Uh that John Eastman, uh,
Speaker 1: former President Trump's former attorney, had argued should not be
Speaker 1: forced to be given to the January six Committee in Congress.
Speaker 1: Uh the district district judge at least said that these
Speaker 1: are related to possible criminal conduct. Uh. He he is
Speaker 1: the judge that said Trump probably attempted to obstruct Congress's
Speaker 1: certification of the election. So this plays into the amount
Speaker 1: of information that is going to that January six committee.
Speaker 1: It doesn't require prosecutors to take action or anything like
Speaker 1: that to charge anybody with crimes, but is it is
Speaker 1: a significant step forward just for the amount of uh
Speaker 1: information and the number of documents being made available from
Speaker 1: Trump's former lawyer to that January six committee. I want
Speaker 1: to turn back to the mid term campaign battle grounds.
Speaker 1: Of course, you are in Ohio right now. President Biden
Speaker 1: is going to be on both sides of Pennsylvania. Talk
Speaker 1: a little bit about what you've been covering, what voters
Speaker 1: are telling you right now, Jacke, You know in Ohio
Speaker 1: it's an interesting one because the polls show a very
Speaker 1: competitive race, but it has broken toward the Republican Party
Speaker 1: in elections so much recently that you have not seen
Speaker 1: a ton of help from national Democratic organizations in favor
Speaker 1: of Tim Ryan. So he is trying to keep it
Speaker 1: close against the Republican nominee J. D. Vance, and some
Speaker 1: polls he's got a very slight lead over the last
Speaker 1: month or so. UM. But he is very much trying
Speaker 1: to separate himself in a pretty conservative electorate from the
Speaker 1: national Democratic leadership. UH. In the debate recently, he was
Speaker 1: trying to sort of prove his independence from someone like
Speaker 1: Nancy Pelosi and tie Vans to Trump. Of course, Trump
Speaker 1: made some comments about how how loyal Vance was to him,
Speaker 1: So there's really a debate between the two sides over
Speaker 1: how loyal the other side is to less popular national figures. UH.
Speaker 1: And of course, in addition to that, there's a huge
Speaker 1: focus on inflation, uh, the state of the economy. UH. Interestingly,
Speaker 1: Ryan campaigning on a middle class and working class tax
Speaker 1: cut in response to inflation. UM. So focus on the economy,
Speaker 1: but also really a major focus on who is independent
Speaker 1: of those national political figures. Just about thirty seconds left here,
Speaker 1: and speaking of the economy, with the President talking about
Speaker 1: these strategic oil releases and now slated to speak about
Speaker 1: the bipartisan Infrastructure law, how is that message resonating? You know,
Speaker 1: the infrastructure law is something they can tout Democrats seem
Speaker 1: to appreciate it. It was a bipartisan bill. Uh. That
Speaker 1: is not the huge focus that I've heard or that's
Speaker 1: played into a lot of TV spending or anything along
Speaker 1: those lines. A lot of the debate what you hear
Speaker 1: from voters, in which you hear from candidates is a
Speaker 1: bit more politically charged than the infrastructure bill, and that
Speaker 1: kind of thing. You hear more of a debate over
Speaker 1: the Inflation Reduction Act and whether it did anything on inflation,
Speaker 1: a little bit more on taxes and some cultural issues,
Speaker 1: obviously abortion. But if Democrats were hoping that the bipartisan
Speaker 1: infrastructure bill I guess carved through the partisan divide in
Speaker 1: any particular state, it does not seem to have been
Speaker 1: the case in Ohio at least all right. Bloomberg Government
Speaker 1: congressional reporter Jack Fitzpatrick covering the campaigns for US this
Speaker 1: morning from Ohio. Bloomberg Surveillance is next with Tom King,
Speaker 1: Jonathan Faroh, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar.
Speaker 1: This is Bloomberg