Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is is Bloomberg
Speaker 1: day Break for Thursday, November three two. Coming up, the
Speaker 1: shower stocks drop as the Fed continues it's aggressive battle
Speaker 1: against inflation. The Bank of England set to deliver its
Speaker 1: figish rate increase in thirty three years. Massive job cuts
Speaker 1: may be coming at Twitter, and China locks down the
Speaker 1: world's largest iPhone factory. The man accused of shooting to
Speaker 1: Newark police officers has been arrested. Plus President Biden warrens
Speaker 1: voters democracy is at stake in the mid terms. I'm
Speaker 1: Michael blarer More and I'm John Stas Showers boards baseball history,
Speaker 1: the Astros that combine no hitter on the Phillies that
Speaker 1: tie the World Series than Knicks lost to the Hawks.
Speaker 1: That's all s traded. Head on Bloomberg day Break on
Speaker 1: Bloomberg e Live in Free on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine
Speaker 1: sixties and Francisco Sirius x M one nineteen and around
Speaker 1: the world Old on Bloomberg Radio dot Com and via
Speaker 1: the Bloomberg Business Up and good morning. I'm Nathan Hagar
Speaker 1: and I'm Karen Moscow and U Stock Index futures are
Speaker 1: following this morning. We're coming up to six o one
Speaker 1: on Wall Street, and we check the markets every fifteen
Speaker 1: minutes throughout the trading day. On Bloomberg, SNP futures down
Speaker 1: five points down, futures down twenty six, NASDAG futures down
Speaker 1: twenty four and the ten year treasury down twenty thirty seconds.
Speaker 1: He'll four point one eight per set and the yield
Speaker 1: on the two year four point seven zero percent. Nathan, Karen,
Speaker 1: we begin with the Fed fueled sell off on Wall Street.
Speaker 1: The SNP five hundred suffered its worst route on a
Speaker 1: FED decision day since January one. The index plunged two
Speaker 1: and a half percent. As expected, the Fed did raise
Speaker 1: rates seventy five basis points for a fourth straight time,
Speaker 1: but stocks sold off. During j Powell's news conference, the
Speaker 1: FED chair made it clear more rate hikes are coming.
Speaker 1: It is very premature to be thinking about pausing. So
Speaker 1: people when they hear legs, they think about the about
Speaker 1: a pause. It's very premature in my view to to
Speaker 1: to think about or be talking about pausing our rate hip.
Speaker 1: We we haven't. We have a ways to go. Our
Speaker 1: policy we need ongoing rate hikes to get to UM
Speaker 1: to that level. The move by j Powell and the
Speaker 1: FED lifts the benchmark to a three and three quarter
Speaker 1: to four percent range from nearly zero in March, Well
Speaker 1: Nathan reaction poured into the FED keeping its aggressive tone.
Speaker 1: Scott Minored, as chief investment Officer, ed Guggenheim, the message
Speaker 1: is loud and clear. You know, we're going to keep
Speaker 1: raising rates until we get price stability, and that's probably
Speaker 1: gonna go into and Guggenheim. Scott Minor had said the
Speaker 1: FED may raise rates significantly higher than the five to
Speaker 1: five and a half percent markets are expecting in the
Speaker 1: first half of next year. We also cut up with
Speaker 1: black Rock senior portfolio manager Jeffrey Rosenberg. The FED does
Speaker 1: not want to see a replay of what we saw
Speaker 1: in July. It does not want to see premature financial
Speaker 1: condition easing on the sign of any FED pivot. Black
Speaker 1: Rocks Senior portfolio manager Jeffrey Rosenberry sentiments were echoed by
Speaker 1: former Philadelphia FED President Charles Plosser. They know they can't
Speaker 1: they can't just stop because it won't work. It's a
Speaker 1: story who experience teaches us that so um, they don't
Speaker 1: have much choice if they really wanted to come yet
Speaker 1: to Laura inflation. Former Philadelphia Fed President Charles Plaster made
Speaker 1: the comments in an interview with The Bloomberg's Kathleen Hayes.
Speaker 1: Not carrying the focus on monetary policy turns to Europe.
Speaker 1: The Bank of England's expected to deliver its biggest rate
Speaker 1: increase in thirty three years. We get a preview from
Speaker 1: Bloomberg's uin Plants in London. Another day, another jumbo rate hike,
Speaker 1: a seventy five basis point increase in the key UK
Speaker 1: industrates is now almost fully priced in by money markets.
Speaker 1: That would take the base rate from two and a
Speaker 1: quarter to three, the highest since two thousand and eight
Speaker 1: and the biggest single hike since Governor Andrew Bailey will
Speaker 1: give a press conference shortly after the announcement, which comes
Speaker 1: at midday. Investors also be watching out for the banks
Speaker 1: reports on the economic outlook, likely to confirm our session
Speaker 1: is now on the way. A loss has changed since
Speaker 1: the last forecast. The beginning of August beached up Government
Speaker 1: support for household energy bills will restrain inflation over the winter.
Speaker 1: After April the government is yet as set out as
Speaker 1: a plan. In London, I'm you in ports Back Daybreak,
Speaker 1: are you in? Thanks? In Asia, China has lockdown the
Speaker 1: world's largest iPhone factory, and Bloombergy Daybreak Asia anchor Brian
Speaker 1: Curtis has more from Hong Kong, China is not playing
Speaker 1: games with COVID zero. Authorities swooped in and put the
Speaker 1: zone around the jung Jo of fox Con plant off limits.
Speaker 1: It's the last thing that Apple needed, or that fox
Speaker 1: Con wanted, given the upcoming holiday season. First a COVID outbreak,
Speaker 1: then an enforced quarantine, and then an exodus of workers.
Speaker 1: They literally walked twenty miles to get home or to
Speaker 1: a train. Some two hundred thousand people work here. It's
Speaker 1: a stark reminder of the dangers for Apple in a
Speaker 1: COVID zero mindset. The lockdown runs until November nine, but
Speaker 1: it could go longer. In Hong Kong, Brian Curtis, Bloomberg
Speaker 1: day Break, All right, Brian, thank you. In corporate news,
Speaker 1: big job cuts are on the way at Twitter, Bloomberg
Speaker 1: News has learned new owner Elon Musk plans to eliminate
Speaker 1: about half the social media company's workforce. That's about thirty
Speaker 1: seven hundred jobs. We get more from Ed Ludlow and
Speaker 1: our Bloomberg nine sixty news room in San Francisco. Sources
Speaker 1: say that's the plan. The layoff list will be confirmed
Speaker 1: Friday and those affected will be informed. We we kind
Speaker 1: of knew this was coming, right. We reported over the
Speaker 1: weekend that manages across product teams have been asked to
Speaker 1: drop a list of candidates that would reduce headcount by
Speaker 1: um you know, and Musk has making his mark on
Speaker 1: this company. Bloomberg's Ed Ludlow says Musk also intends to
Speaker 1: reverse the company's existing work from Anywhere policy asking remaining
Speaker 1: employees to report to officers and Nathan. Job cuts may
Speaker 1: also be on the way at Morgan Stanley Writers is
Speaker 1: reporting the financial firm wilst are layoffs globally in the
Speaker 1: coming weeks. Several stocks are on the move this morning, Karen.
Speaker 1: Following earning, shares of Qualcom right now are down more
Speaker 1: than seven percent. The company delivered a far weaker forecast
Speaker 1: than expected. We get the details from Bloomberg's Charlie Pellett.
Speaker 1: Qualcom is the biggest maker of smartphone processors, and it
Speaker 1: says revenue will be nine point two to ten billion
Speaker 1: dollars in the fiscal first quarter. Now that compares with
Speaker 1: an average annalysts estimate of twelve billion dollars. The outlook
Speaker 1: suggests that the slumping market for consumer devices is eroding
Speaker 1: even faster than expected. Even before the report, the stock
Speaker 1: was down thirty eight percent this year, hurt by concerns
Speaker 1: that smartphone demand was on shaky ground In New York.
Speaker 1: Charlie Pellet Bloomberg daybreak. All right, Charlie, thank you. Some
Speaker 1: other movers this morning. Shares of Alts USA down more
Speaker 1: than twenty three percent, the broadband of video services providers
Speaker 1: earnings missing analysts estimate, shares of Roku down twenty The
Speaker 1: maker of set top boxes consumers used to watch stream services,
Speaker 1: forecast a wider than expected fourth quarter loss, and shares
Speaker 1: of Etsy up ten percent. The online marketplace for crafts
Speaker 1: and vintage items posted third quarter revenue and gross merchandise
Speaker 1: sales that top to analysts estimates. Straight ahead, we have
Speaker 1: your latest local headlines, plus a check of sports, and
Speaker 1: this is Bloomberg. Karen six, House seven on Wall Street,
Speaker 1: fifty four degrees in Central Park and overturned vehicleized northbound
Speaker 1: Nichols Road closed between Furrows Road and the l I E.
Speaker 1: We're coming up in traffic first Michael Barr with more
Speaker 1: on what's going on in New York and around the world. Michael,
Speaker 1: thank you very much. Nathan. Authorities say they got him.
Speaker 1: A two day man hunt ended in Newark, New Jersey,
Speaker 1: with the arrest of the suspects of police a shot
Speaker 1: to officers Tuesday. Police arrested thirty year old Kendall Howard yesterday,
Speaker 1: the suspect and the shooting of the two officers while
Speaker 1: they were serving a warrant swat storming a Newark apartment building,
Speaker 1: going door to door until they found him and brought
Speaker 1: him out. Essex County Acting prosecut to Ted Stephens says
Speaker 1: Howard will face charges. Mr. Howard has been charged with
Speaker 1: two counts of attempted murder of north police officers. Prosecuted
Speaker 1: Ted Stephens says the injured officers are hospitalized in stable condition.
Speaker 1: The convicted shooter in the Parkland, Florida High school massacre
Speaker 1: has been sentenced. Bloomberg's Ed Baxter reports Nicholas Crew sentenced
Speaker 1: for each of the students, whom seventeen for the murder
Speaker 1: in the first degree of Peter Way. The court incluses
Speaker 1: a mandatory life sentence without the possibility of parole. Judge
Speaker 1: Elizabeth Sharer handing down seventeen life sentences connected to the
Speaker 1: students involved. Those sentences are to be run consecutively, so
Speaker 1: seventeen lifetimes in total. There were thirty four sentences in
Speaker 1: San Francisco. I'm at Baxter Bloomberg Gaybreak. With the mid
Speaker 1: term elections just five days away, President Biden is warning
Speaker 1: about political violence and the speech last night, Biden said
Speaker 1: voters are choosing tween democracy and extremism and pointed the
Speaker 1: finger directly at former President Trump. American Democrats Center attacked
Speaker 1: because the defeated former president of the United States refused
Speaker 1: to accept the results election. President Biden then linked violence
Speaker 1: at the Capitol on January six to the recent attack
Speaker 1: on how speaker Nancy Pelosi's husband. Former President Donald Trump
Speaker 1: has settled a lawsuit filed by a group of protesters
Speaker 1: who say they were roughed up by the Republican's private
Speaker 1: security guards during his presidential campaign. The two sides settled
Speaker 1: as a jury was being selected in the New York
Speaker 1: court room for a civil trial the tales of the
Speaker 1: settlement were not divulged. The lawsuit alleges Trump's bodyguards attacked
Speaker 1: him outside his Manhattan skyscraper in September off as they
Speaker 1: protested negative comments Trump made about Mexico and Mexican immigrants.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloombergy Quick Take, powered by more than twenty seven
Speaker 1: hunder journalists and analysts more than twenty countries. I'm Michael Barren.
Speaker 1: This is Bloomberg, Nathan. All right, Michael, thanks six o
Speaker 1: nine on Wall Street. Time for the Bloomberg Sports upthing,
Speaker 1: brought to you by Tri State Out He with John
Speaker 1: stash Ower. All right, Nathan, Astros and Phillies Game four
Speaker 1: the World Series, the night after the Phillies won with
Speaker 1: US shut out. The Astros had a shutout, and that's
Speaker 1: not all they had. They have the pitch from Pressley
Speaker 1: is swinging a groundball to third. Pregnant has it the
Speaker 1: throw to first, and that will do it. The Astros
Speaker 1: even up the World Series with a five to nothing win.
Speaker 1: Did I and four of their pictures combined to no
Speaker 1: hit the Philadelphia Phillies. Yes, Pressley finishes off what Christian
Speaker 1: Javier started as being at the call. Houston scored all
Speaker 1: the games five runs on five hits in the fifth
Speaker 1: and in and the Phils could not touch Javier, who's
Speaker 1: on an amazing role, allowed only one hit in that start.
Speaker 1: Versus the Yankees in the ALCS and Xavier's last six starts,
Speaker 1: covering thirty four innings, he has not allowed to ron.
Speaker 1: He's never allowed more than two hits. The only previous
Speaker 1: World Series no hit of Don Larson's perfect game nineteen
Speaker 1: fifty six Pivotal Game five. Tonight, Houston's justin Verlands, still
Speaker 1: seeking his first World Series win. He's oh and six.
Speaker 1: The x met Noah Synderguard starts for the films. The
Speaker 1: game will be played while the NFL teams from Houston
Speaker 1: and Philly also meet at the Garden. Nick's led Atlanta
Speaker 1: by twenty three and then trailed by nineteen got outscored
Speaker 1: seventy nine to thirty seven. The Hawks one nine nine,
Speaker 1: led by off season pick up Demonte Murray scort a
Speaker 1: career high thirty six points. The Nets and Kyrie Irving
Speaker 1: jointly announced both will donate five hundred thousand dollars to
Speaker 1: anti hate causes. Irving last Saturday, somewhat double down on
Speaker 1: that posting of an anti Semitic video. He has natalist
Speaker 1: a statement that said he takes responsibility meant no harm,
Speaker 1: opposes all forms of hatred. John stash Netward, Bloomberg Sports, Stephen,
Speaker 1: thank you, John SMP futures down down nine points, Staff
Speaker 1: Futures down fifty seven. NAZAC Future is lower by thirty
Speaker 1: four points. The tenure Treasury down twenty three thirty seconds.
Speaker 1: Now the yield four point one nine per cent. You're
Speaker 1: listening to Bloomberg Daybreak and Bloomberg Sports was brought to
Speaker 1: you by Audie. Don't let someone else drive off in
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Speaker 1: Quick Tape He's a Bloomberg Business Flash and I'm Karen Moscow.
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Speaker 1: Resne Health clients recognize the opportunities. Learn more at Cone
Speaker 1: Resnick dot com. Future is lower this morning with SMP
Speaker 1: future is down fourteen points now, futures down a hundred,
Speaker 1: nasdack futures down fifty and a tenure Treasury down twenty
Speaker 1: seconds held four point one nine percent. They yield on
Speaker 1: the two year four point seven n I'm excret oil
Speaker 1: down one and a half percent on a dollar thirty
Speaker 1: seven at eighty eight dollar sixty five cents a barrel.
Speaker 1: That's a Bloomberg business flash. Now here's Michael Barr with
Speaker 1: Moore on what's going on around the world. Michael Karen,
Speaker 1: thank you very much. President Joe Biden asked voters to
Speaker 1: consider the future of democracy when they vote in the
Speaker 1: next mid term elections next week. During last night's speech,
Speaker 1: Biden nerge voters to reject Donald Trump's big line, denying
Speaker 1: is defeat that fuel political extremism and violence. Christian Navier
Speaker 1: and the Astros Bullpen combined for just the second no
Speaker 1: hitter in World Series history Houston one Game four against
Speaker 1: the Phillies five zip to even the series at two
Speaker 1: games apiece. The NFL's Washington Commanders could be soon for sale.
Speaker 1: Owners Dan and Tennas Snyder say that they have hired
Speaker 1: Bank of America Securities to consider potential transactions in the NBA.
Speaker 1: The Knickson Celtics lost the Wizards won. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than a hundred twenty countries. Michael Barr, this is Bloomberg.
Speaker 1: Nathan all right, Michael, thank you. It is six nineteen
Speaker 1: on Wall Street Live from the Bloomberg Interactive Broker Studios.
Speaker 1: This is Bloomberg Daybreak as we continue to get market
Speaker 1: reaction to the FED decision and await the next move
Speaker 1: from the Bank of England. Were joined this morning by
Speaker 1: Bloomberg Opinion calumnist Marcus Ashworth. Marcus, good morning. So we
Speaker 1: got a lot of changes to the FED statement obviously,
Speaker 1: Chairman Powell now saying rates could go higher than previously expected,
Speaker 1: though the pace could slow soon. Does anything really change
Speaker 1: given that the market has been starting to price in
Speaker 1: slower rate moves from the Fed? Um SI difficult aslant
Speaker 1: it does. Things have changed in perceptions change, but the
Speaker 1: actual reality is no, not a lot of change in
Speaker 1: the sense that rates are higher. Uh, Pal, I'm looking
Speaker 1: for the far I actually think we catch has caught
Speaker 1: a lot of flak perhaps stateside, but you know, as
Speaker 1: far as handling the markets and expressing what they're up
Speaker 1: to and why, he does a far better job, I
Speaker 1: think than anyone in Europe, UK or whatever it does
Speaker 1: by comparison. So you know, slower, higher, longer is the
Speaker 1: three word synopsis. But you know he switched the debate
Speaker 1: from this sort of short sharp get the great heights
Speaker 1: in early two. You know you're going to have higher
Speaker 1: rates for a longer period, but we're not going to
Speaker 1: go at it quite as man. I think the Bank
Speaker 1: of England's recent having to step in and defend the
Speaker 1: guilt market is clearly reverber and through the FED thinking.
Speaker 1: But they're not. They have not changed their approach in
Speaker 1: the broader sense. They've just gone about it in a
Speaker 1: different way and signaled to that markets to the markets
Speaker 1: very effectively. Obviously, we saw initial reactions to those wording
Speaker 1: change with their right to note this king to tightening
Speaker 1: will have some kicking effect. However, they managed to switch
Speaker 1: the debate straight back to take away from what would
Speaker 1: ruin it all, which is markets expressing this pivot and
Speaker 1: loosening financial conditions is exactly what the FED doesn't want
Speaker 1: to happen. Very skillful. I think you raise a question there,
Speaker 1: I think of FED credibility. Obviously a lot of people
Speaker 1: think that the FED last credibility with the talk of
Speaker 1: the T word that we no longer say about inflation.
Speaker 1: Has the FED started to gain back some of its
Speaker 1: credibility with the tightening path that it's set out here.
Speaker 1: I think so. I mean, I mean, to my mind,
Speaker 1: I think they've been handling it very well. The big
Speaker 1: difference here is that a lot of people may say
Speaker 1: that too many FED speakers and whatever, but they are
Speaker 1: all pretty much in unison with each other. And that's
Speaker 1: again the other thing. You don't get that sense from
Speaker 1: other bank coming on obviously, you'd be that everyone's on
Speaker 1: the same page where the Fed we do now we
Speaker 1: know daily said a couple of slightly more moderate things.
Speaker 1: Brain art possibly as well, but really it's pretty mild. Uh.
Speaker 1: And I think that they're showing a united response, and
Speaker 1: clearly how Powell has phrased it last night was was
Speaker 1: I think you know a master class. Well, what's the
Speaker 1: policy path going to do for the economy. And I
Speaker 1: think now the debate turns to whether the FED is
Speaker 1: going to be able to achieve a soft landing with
Speaker 1: this kind of tightening and raising the possibility of slower
Speaker 1: hikes now while at the same time we're still seeing
Speaker 1: this tightness in the labor market. Yeah, and I think
Speaker 1: sput on there. But the point is is that what
Speaker 1: what power has basically moved away from a a soft
Speaker 1: landing and basically saying they're going to have to be
Speaker 1: a recession. What he's trying to say is we are
Speaker 1: not going to go out. This is hard to break
Speaker 1: things as clearly things that broke in the UK we
Speaker 1: don't want that. We see and hear the warriors and
Speaker 1: wobbles in the U S troasury market in particular. That's
Speaker 1: why it's going to be slower but longer, but probably higher,
Speaker 1: but I don't sure it will be higher. But the
Speaker 1: point is is he's having to have his his cake
Speaker 1: and eat it, as we can often say, out of here,
Speaker 1: because he's managed to get the effect he wanted, which
Speaker 1: is to keep bonnels high and not see financial positions loosen,
Speaker 1: all the stock market to go all sudden on a tear,
Speaker 1: thinking that it's all over the rates, the rate hikings
Speaker 1: turned because that's not what he wants. He wants to
Speaker 1: keep the mark, get on edge, on point for as
Speaker 1: long as possible, and when they're ready to slow things
Speaker 1: down and when they're ready to possibly stop hiking, it
Speaker 1: will be on the fence terms. And that I think
Speaker 1: is is police stable. But unfortunately the many of that
Speaker 1: is probably that there will be some form of recession
Speaker 1: in the US. I think about a minute left here,
Speaker 1: in about thirty seven minutes before the Bank of England decision,
Speaker 1: you kind of set out the challenge here for the
Speaker 1: policy makers. What are you looking for? I think they
Speaker 1: have to do semi five just because the ECB has
Speaker 1: done semi five. The said done semi five last time around,
Speaker 1: they went and went fifty. They could a lot of
Speaker 1: flat from it. Obviously, the world of other problems came in,
Speaker 1: but I don't think they've got much room to or
Speaker 1: desire to do any other than seventy five. There's a
Speaker 1: risk of fifty. They're gonna have to justify that though,
Speaker 1: But again I think they probably will be slightly more
Speaker 1: dublished on the back end as far as Hi raids
Speaker 1: will go open here and just quickly does the chaos
Speaker 1: of Rieshi soon act. Picking up the pieces from Liz
Speaker 1: Trust play into the day's decision for the b o E.
Speaker 1: I'm gonna say no, it shouldn't do this all the reasons.
Speaker 1: I think that's why they want to do seventy five,
Speaker 1: to make sure that they're sending a message that they
Speaker 1: are in control and they're doing what they think is
Speaker 1: needed to be on inflation. On the fiscal side. Now
Speaker 1: they can relax a bit on but it doesn't it
Speaker 1: means they could focus that for away from the fiscal concept.
Speaker 1: Sellu the monetary ways to keeping control on the great
Speaker 1: to talk with you this morning, Marcus. Thanks for this.
Speaker 1: Marcus Ashworth, columnist for Bloomberg Opinion. Find his stuff and
Speaker 1: I Ashworth go on the Bloomberg terminal. All our opinion
Speaker 1: pieces are on O, P, I N Go and at
Speaker 1: Bloomberg dot com Slash Opinion. Looking ahead to the market
Speaker 1: open this morning, Wall Street moving lower after the route
Speaker 1: yesterday following Chairman Palace comments. S and P futures are
Speaker 1: down sixteen points, Dow futures down a hundred eight NASDAC
Speaker 1: futures are lower by fifty seven points ten, Your treasuries
Speaker 1: down twenty three thirty seconds. The yield of four point
Speaker 1: one nine percent on the benchmark two year yield now
Speaker 1: at four point seven two British pound ahead of the
Speaker 1: b o E decision one point one to four five
Speaker 1: against the dollar. This is Bloomberg Bloomberg Daybreak, brought to
Speaker 1: you by ancient accountants and advisors, the right fit tax
Speaker 1: and accounting firm that you need to succeed. Visit the
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Speaker 1: That's Ancient dot com slash v i P broadcasting live
Speaker 1: from the Bloomberg Interactive Broker Studio in New York. Bloomberg
Speaker 1: E Loving Freedom to Washington, d C, Bloomberg to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg N
Speaker 1: sixty to the Country Sirius XM Chado one ninet and
Speaker 1: around the globe the Bloomberg Business app and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Daybreak. It's six thirty on
Speaker 1: Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow.
Speaker 1: We are just about three hours away from the Open
Speaker 1: of US training It's time for the five things that
Speaker 1: you need to notice start your day. Brought to you
Speaker 1: by Interactive Brokers ib k R, event Trader offers a
Speaker 1: new way to trade futures. Use event contracts to trade
Speaker 1: your opinion on yes or no questions and key CME
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Speaker 1: dot com. At first, US futures are lower after a
Speaker 1: hawk ish FED led to a Wall Street sell off Yesterday.
Speaker 1: As expected, at Central Bank raised interest rates seventy five
Speaker 1: basis points, but stock sold off when Fed chair J
Speaker 1: Powell made clear monetary tightening still has a ways to go.
Speaker 1: We still have some ways to go, and incoming data
Speaker 1: since our last meeting suggests that the ultimate level of
Speaker 1: interest rates will be higher than previously expected to move
Speaker 1: by J. Powell. I'm a FED lifts the benchmark to
Speaker 1: a three point seven five percent to four percent range
Speaker 1: from nearly zero in March. Well reaction poured into the
Speaker 1: Fed's aggressive tone. Karen I Capital chief investment strategist Anastasia
Speaker 1: Murosso says traders are left with an uncertain path ahead. Initially,
Speaker 1: the markets got what they wanted, which is it seems
Speaker 1: like we are going to slow the path of rating increases.
Speaker 1: But then in the same breath that your Powell mentioned
Speaker 1: that we have ways to go before we actually can pause,
Speaker 1: and NATS was really unsettled the markets. The hope going
Speaker 1: into is that we can maybe start to see the
Speaker 1: beginning of the end of the tightening cycle. We cannot
Speaker 1: draw that conclusion right now and the stage Mrosa with
Speaker 1: Eye Capital says, economic indicators show the chances of a
Speaker 1: recession around well. Nathan. Former Philadelphia Fed president Charles Plaster says,
Speaker 1: the probability of the Fed achieving a soft landing maybe slimmer,
Speaker 1: that that should be very likely, and achieve a sort
Speaker 1: of somewhat soft landing, it's a very fine you know,
Speaker 1: and it will take a lot of luck, not just
Speaker 1: a policy instision, but luck to achieve that. At this point,
Speaker 1: Former Philadelphia Fed President Charles Plaster says j. Powell should
Speaker 1: still consider another seventy five basis point hike at next
Speaker 1: month's f o MC meeting. Monetary policies from focus over
Speaker 1: in Europe, Karen and the next hour. The Bank of
Speaker 1: England's expected to deliver its biggest rate increase in thirty
Speaker 1: three years. Labor in Asia and Nathan China lockdown the
Speaker 1: world's largest iPhone factory and chang Zoo area to cut
Speaker 1: COVID spread. The lockdowns expected to last until next week.
Speaker 1: In time, Bloomberg News has learned Elon Musk plans to
Speaker 1: eliminate about half of Twitter's work for US about thirty
Speaker 1: seven hundred jobs, and job cuts may also be on
Speaker 1: the way at Morgan Stanley Ruters is reporting the financial
Speaker 1: for almost start layoffs globally in the coming weeks. And
Speaker 1: that's the five things you need to notice start your day.
Speaker 1: Brought to you by Interactive Brokers. Futures this morning are
Speaker 1: moving lower and straight ahead. We had your latest local
Speaker 1: headlines plus the check of sports, and this is Bloomberg. Thanks. Karen.
Speaker 1: At sixty three on Wall Street, fifty three degrees now
Speaker 1: in Central Park. Got an accident southbound New York stayed
Speaker 1: through way before the Spring Valley tolls. Details coming up
Speaker 1: in traffic. First Michael Barr with what else is going
Speaker 1: on in New York and around the world. Good morning, Michael,
Speaker 1: Good morning. Nathan. The man who auth already said wounded
Speaker 1: to Newark police officers as they attempted to serve a
Speaker 1: warrant was taken into custody Yesterday. Kendall Howard, whose thirty
Speaker 1: years charged with the attempted murder of the two officers.
Speaker 1: State Attorney General Matt Platkin provided an update on the
Speaker 1: officers shot. I had the opportunity to visit with them
Speaker 1: last night. Thank god, they are recovering and will recover.
Speaker 1: A g plantin and authorities say one officer was shot
Speaker 1: in the leg and the other was shot in the next. Tuesday,
Speaker 1: with just days to go before major midterm elections, President
Speaker 1: Joe Bladen is imploring voters to save American democracy. Biden
Speaker 1: brought up ultra Maga Republicans and mounting concerns over political violence.
Speaker 1: I believe the voices excusing are calling for violence and
Speaker 1: intimidation our distinct minority in America. But they're loud and
Speaker 1: they are determined. Last night's speech came a few days
Speaker 1: after a man seeking to kidnap house speaker Nancy Pelosi
Speaker 1: severely injured her husband Paul Pelosi in their San Francisco home. Meanwhile,
Speaker 1: New Jersey's governor says it will be a tough fight
Speaker 1: in the midterm elections. Governor Phil Murphy, you've got the
Speaker 1: normal reality of a midterm election with an incumbent party
Speaker 1: in the White House. So you begin in a in
Speaker 1: a tough place, and then you add to that recovering
Speaker 1: from a pandemic, inflation, affordability, It won't make the races
Speaker 1: any easier. Governor Murphy made his comments with David Weston
Speaker 1: on Bloomberg's Balance of Power. Former President Trump asked Florida
Speaker 1: court to shield some of his wealth from the New
Speaker 1: York Attorney General, who has filed a two fifty million
Speaker 1: dollar civil lawsuit against Trump and his family. Trump's civil lawsuit,
Speaker 1: filed in a Florida court, is laden with grievances about
Speaker 1: a g Letitia James and her investigation of his business.
Speaker 1: He accused her of making repeated attempts to steal, destroy,
Speaker 1: or control all things Trump. Get your lottery tickets out.
Speaker 1: It's time to play America's favorite jackpot game. This is
Speaker 1: Power Evolved. The bad news is you didn't win the
Speaker 1: big one, but the good news is no one else
Speaker 1: did either. Nobody hit the nobody hit the magic and
Speaker 1: life changing numbers to win the one point two billion
Speaker 1: dollar power ball jackpot. That means Nathan the next jackpot
Speaker 1: Saturday is estimated to be one point five billion dollars.
Speaker 1: Could be someone's weekend global news. I have a weekend
Speaker 1: twenty more hours a day on air and on Bloomberg
Speaker 1: Quicktake power by more than seven hundred journalist analysts, more
Speaker 1: than a hundred, twenty countries. I'm Michael Barr. This is
Speaker 1: Bloomberg Nathan. Thank you, Michael. Just about six thirty six
Speaker 1: on Wall Street. Time for the Bloomberg Sports Update, brought
Speaker 1: to you by Trice State. Out of Here's John stash Our.
Speaker 1: Athan a World Series no hitter, and it only happened
Speaker 1: once before Don Larson's perfect game against the Brooklyn Dodgers
Speaker 1: nineteen fifty six. Yankee stady pitchers don't throw complete games anymore,
Speaker 1: so it was a combined no hitter. It started with
Speaker 1: the Astros Christian Javier and ended with Ryan Pressley, just
Speaker 1: like the combined no hitter the Astro's hat at Yankee
Speaker 1: Stadium back in June, Astro's blank the Phillies five nothing.
Speaker 1: The World Series is tied at two heading to Game
Speaker 1: five tonight. The Houston manager, it's Dusty Baker that they
Speaker 1: have a great offensive club over there, and they've got
Speaker 1: a lot of energy in this ballpark and uh so
Speaker 1: it's uh man, it's a strange series. I mean they
Speaker 1: hit five home runs yesterday and then no hits today.
Speaker 1: I mean, this is a daily game. And the only
Speaker 1: other postseason no hitter was in that was also a
Speaker 1: Citizens Bank Park in Philly by Royality against the Reds,
Speaker 1: where they managed five akre att The garden Nicks were rolling,
Speaker 1: led the Ops by twenty three. They got outscored the
Speaker 1: third quarter thirty two to ten. They had more turnovers
Speaker 1: than points. Atlanta one one ninety nine, led by DeMont
Speaker 1: Je Murray's career high thirty six points. He had nine assists,
Speaker 1: six deals. The Nets and Kyrie Irving will both donate
Speaker 1: five hundred thousand dollars to anti hate causes. They released
Speaker 1: a statement with the Anti Defamation League and what Driving
Speaker 1: said He's learning and is willing to listen. Last week
Speaker 1: posted a link to an anti Semitic video. Is Dan
Speaker 1: Snyder going to sell of Washington Commanders? Their fans are
Speaker 1: be hoping, so he's hired Bank of America Health quote,
Speaker 1: consider all options? Do statam sports? All right? John? Thank you?
Speaker 1: Six thirty seven on Wall Street. Time to take a
Speaker 1: look at stocks. Some of the names moving in the
Speaker 1: pre market. Lots to get to with Bloomberg Radio and
Speaker 1: TV Markets correspondent Crety Gupta this morning with some of
Speaker 1: the highlights and low lights from the latest and earning season.
Speaker 1: And you're starting with a pretty big low light here, Crety. Yeah,
Speaker 1: a real hit to Qualcom shares this morning. Q c
Speaker 1: o M is your ticker down but eight point two
Speaker 1: percent in the pre market. This is the biggest maker
Speaker 1: of smartphone processors. It's of course in the Apple supply chain,
Speaker 1: massive presence in China. When we're talking about just the
Speaker 1: supply chain issues that you're seeing around the world. They
Speaker 1: came out and they gave a far weaker forecast than expected.
Speaker 1: A lot of this coming up from just the macroeconomic
Speaker 1: slowdown that you're seeing, but really emphasizing the pain of
Speaker 1: those COVID nineteen lockdowns in China making As you'll remember,
Speaker 1: just a couple of days ago, we heard about uh
Speaker 1: the region of China where four to five iPhones are made.
Speaker 1: That area completely shut down because the COVID lockdowns in
Speaker 1: a week. By the way, that there are rumors that
Speaker 1: this COVID zero policy may abage or at least be
Speaker 1: considered to to abait at some point. Nevertheless, Qualcom coping
Speaker 1: with the slowdown in part by freezing hiring. That seems
Speaker 1: to be the big kind of red flag from a
Speaker 1: lot of these companies reporting earnings. Coming from executives during
Speaker 1: the conference call, they're also talking about a build up
Speaker 1: of extra inventory, inventory that they're gonna say that they
Speaker 1: say it's going to take at least two quarters to clear.
Speaker 1: So that of course something that you're not just seeing
Speaker 1: the retail space from the chip space as well. Speaking
Speaker 1: of a retail I guess we've got some positive news
Speaker 1: on the e commerce side. We did eBay. You know,
Speaker 1: I don't know if you use eBay. I have never been.
Speaker 1: It's been a while, but they are still kicking e
Speaker 1: b a y is your taker. It's up about four
Speaker 1: tenths of one percent. Now, this is a company that
Speaker 1: is really rallying the top end of their profit forecast,
Speaker 1: exceeding estimates from the street. It's potentially evidence that this
Speaker 1: is a company, this is an online market ace that
Speaker 1: could shift to luxury items and refurbish goods. Now, you
Speaker 1: don't really associate eBay with luxury items per se, but
Speaker 1: if you're actually looking at the retail space. Think Nordstrom.
Speaker 1: Think Macy's are actually thriving because they have that luxury
Speaker 1: exposure and are catering to a higher clientele or a
Speaker 1: higher income clientele. I should say so, uh, eBay potentially
Speaker 1: getting in on that. But it's not alone at seas
Speaker 1: when you want to watch as well, e T s
Speaker 1: Y is your taker. It's up about eleven, this one
Speaker 1: actually climbing on third quarter growth rates in the fourth
Speaker 1: quarter guidance. Those numbers just impressing Wall Street across the
Speaker 1: board and Nathan and throw one more low light at you.
Speaker 1: Roku shares taking it on the chin. Are okay used
Speaker 1: to take her down about twenty in the pre market
Speaker 1: this coming after they report third cor results that miss
Speaker 1: and issued a pretty scary warning about the ad market.
Speaker 1: Full disclosure, Roku's got a weird ol movie coming out tomorrow,
Speaker 1: really looking forward to and thank you create a Bloomberg
Speaker 1: Radio TV Markets corresponding Crety cooped up with us this morning.
Speaker 1: Stocks as a whole taking it on the chin after
Speaker 1: the FED decision in Sherman Powell's news conference, more losses
Speaker 1: in store, potentially with SMP futures down twenty one point.
Speaker 1: Staff futures down a hundred forty three. Nastack futures are
Speaker 1: lower by seventy five points ten Your treasury down twenty
Speaker 1: two thirty seconds yield four point one. This is Bloomberg
Speaker 1: Bloomberg Sports, brought to you by Audie. Don't let someone
Speaker 1: else drive off in the autie model. You've always wanted
Speaker 1: to visit your local price state autie dealer to get
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Speaker 1: dot com for more information, markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot com, the
Speaker 1: Bloomberg Business apt and at Bloomberg Quick Takes a Bloomberg
Speaker 1: Business Flash and I'm Karen Moscow and futures are following
Speaker 1: this morning. Let's go to the First Word breaking news
Speaker 1: desk for today's morning call. And here's Bill Loney. Bill,
Speaker 1: good morning, Hey, good morning. Can that's right. US futures
Speaker 1: are under pressure right now A death futures down a
Speaker 1: hundred and sixty seven points, subs drop twenty five and
Speaker 1: as that futures are off by eight, the US ten
Speaker 1: year old jumps to four point one nine percent. Gold
Speaker 1: is down fourteen. Oil is in the red and Bitcoin
Speaker 1: is training higher by half a percent. Hong Kong fell
Speaker 1: three percent overnight, while European markets are firmly in the
Speaker 1: red this morning and back in the US. On the
Speaker 1: economic Frinday, thirty initial jobs claims at services and Composite
Speaker 1: p m I s and at ten o'clock factory orders
Speaker 1: and durable goods orders. After the bellas night, Clawcom gave
Speaker 1: a downbeat forecast and regarding earnings. This morning, Signal raised
Speaker 1: its outlook and Marriott EPs was in line and other
Speaker 1: news people familiar said that Elon Musk plans to eliminate
Speaker 1: half of Twitter's workforce to cut costs and wrapping things up,
Speaker 1: Cognizant was cut the sector perform at RBC Live from
Speaker 1: the first breaking news vescm Bill Maloney, Karen, all right, Phil,
Speaker 1: thank you, and to hear live breaking news of your
Speaker 1: Bloomberg type squawd on your rman. I'll scue you a
Speaker 1: w K and that's a Bloomberg business flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world. Michael, Karen,
Speaker 1: thank you very much. There were three more missile tests
Speaker 1: by North Korea, including a suspected intercontinental ballistic missile that
Speaker 1: reportedly failed midflight. People in northern Japan awoke to sirens
Speaker 1: and were instructed to seek shelter. Christian Navier and the
Speaker 1: Astros bullpen combined for just the second no hitter in
Speaker 1: World Series history. Houston won Game four against the Phillies
Speaker 1: five zip to even the series of two games. Apiece
Speaker 1: Thursday Night Football, the undefeated Eagles take on the Houston Texans.
Speaker 1: The NFL's Washington Commanders could be soon for sale. Owners
Speaker 1: Dan and Tenna Snyder say that they have hired Bank
Speaker 1: of America Securities to consider potential transactions. NBA at the
Speaker 1: Knicks and Celtics lost. The Wizards won Global news twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Tank,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than a hundred twenty countries. I'm Michael Barr, and
Speaker 1: this is Bloomberg car all right, Michael bar thank you.
Speaker 1: It is six forty nine on Wall Street and returned
Speaker 1: to news and Science and Technology Now with a Bloomberg
Speaker 1: and j I T Stem report brought to you buy
Speaker 1: New Jersey Institute of Technology ranked a top one hundred
Speaker 1: national university by US News and World Report and number
Speaker 1: fourteen in the nation on Money's Best Colleges list. Learn
Speaker 1: more at n j I, T dot, E d U
Speaker 1: and here's let's making news and science, Technology, engineering and math.
Speaker 1: Big job cuts on the way at Twitter, Bloomberg News
Speaker 1: has learned that new owner Elon Musk plans to eliminate
Speaker 1: about half the social media company's workforce, about thirty seven
Speaker 1: hundred jobs. Musk intends to inform the affected staffers on Friday. Meanwhile,
Speaker 1: remaining Twitter employees will be asked to return to the office.
Speaker 1: And China, the National Health Commission says the nations zero
Speaker 1: tolerance approach remains a strategy to fight COVID. That comes
Speaker 1: after unverified social media posts boosted hopes the policy would
Speaker 1: be eased. Yesterday, China reported the most new COVID cases
Speaker 1: in more than two months. And nature has given the
Speaker 1: British government a break. The unusually warm weather in the
Speaker 1: UK last month brought down the cost of the government's
Speaker 1: energy subsidies by almost two ninety six million dollars. The
Speaker 1: unseasonably high temperatures meant households have not switched on their
Speaker 1: heating as early as they would in a normal year,
Speaker 1: and that's the Bloomberg and j I T Stem Report. Nathan,
Speaker 1: Thanks Karen. We're lie from the Bloomberg Interactive Brokers studios,
Speaker 1: where it is six fifty on Wall Street timed now
Speaker 1: to check what's going on in DC. Some of the
Speaker 1: top stories in our nation's capital include President Biden asking
Speaker 1: voters to spurn what he calls Trump's big lie and
Speaker 1: a speech on democracy. The US Chamber of Commerce defending
Speaker 1: its CEO midtentions with Republicans, aggressive medicare advantage ads accused
Speaker 1: of misleading seniors, and Biden's inflation advisors include CEO s
Speaker 1: old pals and field hockey parents. Let's bring in Bloomberg
Speaker 1: Government Congressional reporter Jack Fitzpatrick for more on some of
Speaker 1: these stories, starting of course, with the speech last night
Speaker 1: from President Biden that was built by Democrats and the
Speaker 1: White House as a major address US on democracy. It's
Speaker 1: something that he's been talking about quite a bit on
Speaker 1: the campaign trail, and now it sounds like he might
Speaker 1: be making a closing argument here. Yeah, as we get
Speaker 1: closer to the midterm election date. Uh, it's interesting to
Speaker 1: hear the president focus on this is a closing argument,
Speaker 1: especially when you had heard I think other instances of
Speaker 1: Democrats trying to shift towards an economic message. There are
Speaker 1: Democratic pollsters who have said, uh, shifting toward the economy,
Speaker 1: what you're going to do to respond to inflation, that
Speaker 1: kind of thing, and and and that's something that Democrats
Speaker 1: have gotten on TV with and on the campaign trail.
Speaker 1: But this is a a very high profile, uh late
Speaker 1: speech near the capital, very focused on on essentially January
Speaker 1: six democracy. Uh. It may run the risk of making
Speaker 1: it a little unclear to voters exactly what the closing
Speaker 1: messages from Democrats because it's a bit of a multi
Speaker 1: pronged approach. But he he definitely wanted to emphasize shortly
Speaker 1: before the election, just a week now, uh that you know,
Speaker 1: in races for Congress, for state level secretary of state,
Speaker 1: that kind of thing. As he said, he warned of
Speaker 1: a path to chaos in America, uh and unlawful on
Speaker 1: American issues essentially around January six, as well as the
Speaker 1: assault on Paul Pelosi recently. I guess it remains to
Speaker 1: be seen whether this speech will have any impact on voters,
Speaker 1: especially since we're already into early voting in many states.
Speaker 1: But there's also an analysis, uh from Bloomberg News this
Speaker 1: morning that when it comes to election denial, that's a
Speaker 1: message that does seem to be resonating on the Republican side. Uh. Yeah,
Speaker 1: you know, it's a little tough to predict what this
Speaker 1: kind of thing is going to do, uh, in terms
Speaker 1: of the results in in these mid terms. Of course,
Speaker 1: you know this this is something that can motivate people. Uh,
Speaker 1: this is clearly Uh, I think would you call a
Speaker 1: motivation speech rather than just a persuasion persuasion speech. Um,
Speaker 1: there have been votes cast, millions of vote casts already,
Speaker 1: mail in ballots and early voting around the country. But
Speaker 1: if if you are trying to push turnout late. This
Speaker 1: is something that a number of Democrats in swing states
Speaker 1: have brought up, especially when they're speaking to Democrats. Uh
Speaker 1: so yeah, it's look, the results are, the polling is
Speaker 1: not looking fantastic for congressional Democrats around the country, But
Speaker 1: if they're trying to urge their supporters to take this seriously,
Speaker 1: that seems to be the kind of thing that this
Speaker 1: speech is aimed toward. And now there's a little bit
Speaker 1: of gaming out of what a Republican takeover of Congress
Speaker 1: could mean if it does turn out that way, tell
Speaker 1: us about these tensions we're seeing between Republicans and the
Speaker 1: US Chamber of Commerce. This is a lobby that used
Speaker 1: to be aligned pretty closely with the Republican Party, right. Yeah,
Speaker 1: there there have been a number of instances in which
Speaker 1: we've seen Republicans kind of move away from I guess
Speaker 1: what you'd call their their corporate uh, their alliance with
Speaker 1: corporate America in recent years. Uh. Definitely some uh, some
Speaker 1: tensions lately as we see Kevin McCarthy and others complaining
Speaker 1: about the newer CEO, Suzanne Clark. Axios originally reported that
Speaker 1: Kevin McCarthy is is telling the Chambers Board UH and
Speaker 1: its leaders at the state level that uh they would
Speaker 1: have to replace Clark and have a new se YO. Uh.
Speaker 1: There seems to be some pushback, uh and and the
Speaker 1: organization is uh sticking with Suzanne Clark at least, standing
Speaker 1: by her initially and saying they completely support her. But
Speaker 1: there have been comments from McCarthy, uh from UM other
Speaker 1: members in the Republican Study Committee that about essentially a broader,
Speaker 1: longer term plan to have a less cozy relationship with
Speaker 1: the groups like the Chamber of Commerce and essentially corporate
Speaker 1: America than they did in previous years. And this seems
Speaker 1: seems to be probably the highest profile, most personal, uh
Speaker 1: sort of potentially vendetta within that broader issue. In our
Speaker 1: last minute here, Jack, I've got to turn to this
Speaker 1: great story on the Bloomberg terminal this morning about President
Speaker 1: Biden's wide and rather unorthodox circle of economic advisors. Yes, uh,
Speaker 1: you know some names you might expect. Obviously, he has
Speaker 1: talked lately to Larry Summers, that is, um, uh, somebody
Speaker 1: who has been critical of of uh, some decisions that
Speaker 1: Democrats have made. Lately. He's checked in with some of
Speaker 1: the classic Democratic economic advisors and people who have had
Speaker 1: a role in uh past past administrations, Tim Geitner, Hank Paulson,
Speaker 1: that kind of thing. Um, you know, you see a
Speaker 1: very wide list of names as a president who has
Speaker 1: um come in with an economic vision to to respond
Speaker 1: to a certain set of circumstances and then very quickly
Speaker 1: responding to the unexpectedly high levels of inflation. Somebody who
Speaker 1: maybe came in trying to get a little bit of everything. Uh,
Speaker 1: Marty Walsh, a high profile person from the left. We
Speaker 1: initially went to but you know it probably a little
Speaker 1: less from the Wall Street types that some recent Democrats
Speaker 1: have gone with, I think, essentially to take away a
Speaker 1: very wide range of voices. Yeah, and the interesting anecdotes
Speaker 1: in this story as well about the president kind of
Speaker 1: getting random encounters with people and that sort of feeding
Speaker 1: into his economic outlook as well. Jack Fitzpatrick of Bloomberg Government,
Speaker 1: thanks for this. You can read all about these stories
Speaker 1: on Bloomberg dot com or on the Bloomberg terminal. Listen
Speaker 1: to Bloomberg Radio in Washington Bloomberg and one oh five
Speaker 1: point seven f m HD two futures pointing to a
Speaker 1: lower open this morning. Bloomberg Surveillance up next, taking you
Speaker 1: to the Bank of England decision for Karen Moscow. I'm
Speaker 1: Nathan Hager, and this is Bloomberg