WEBVTT - Bloomberg Daybreak: November 3, 2022 - Radio (Hour 2) 0:00:02.640 --> 0:00:06.000 Live from the Bloomberg Interactive Burgers Studios. This is is Bloomberg 0:00:06.080 --> 0:00:09.520 day Break for Thursday, November three two. Coming up, the 0:00:09.560 --> 0:00:13.520 shower stocks drop as the Fed continues it's aggressive battle 0:00:13.520 --> 0:00:16.320 against inflation. The Bank of England set to deliver its 0:00:16.320 --> 0:00:20.000 figish rate increase in thirty three years. Massive job cuts 0:00:20.000 --> 0:00:22.400 may be coming at Twitter, and China locks down the 0:00:22.440 --> 0:00:25.960 world's largest iPhone factory. The man accused of shooting to 0:00:26.160 --> 0:00:29.800 Newark police officers has been arrested. Plus President Biden warrens 0:00:29.880 --> 0:00:33.159 voters democracy is at stake in the mid terms. I'm 0:00:33.200 --> 0:00:37.159 Michael blarer More and I'm John Stas Showers boards baseball history, 0:00:37.200 --> 0:00:39.720 the Astros that combine no hitter on the Phillies that 0:00:39.800 --> 0:00:42.400 tie the World Series than Knicks lost to the Hawks. 0:00:44.520 --> 0:00:47.320 That's all s traded. Head on Bloomberg day Break on 0:00:47.479 --> 0:00:51.600 Bloomberg e Live in Free on New York, Bloomberg one, Washington, 0:00:51.720 --> 0:00:55.320 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.400 --> 0:00:59.640 sixties and Francisco Sirius x M one nineteen and around 0:00:59.640 --> 0:01:02.360 the world Old on Bloomberg Radio dot Com and via 0:01:02.440 --> 0:01:08.959 the Bloomberg Business Up and good morning. I'm Nathan Hagar 0:01:09.240 --> 0:01:12.120 and I'm Karen Moscow and U Stock Index futures are 0:01:12.160 --> 0:01:14.200 following this morning. We're coming up to six o one 0:01:14.200 --> 0:01:16.240 on Wall Street, and we check the markets every fifteen 0:01:16.280 --> 0:01:20.119 minutes throughout the trading day. On Bloomberg, SNP futures down 0:01:20.160 --> 0:01:23.720 five points down, futures down twenty six, NASDAG futures down 0:01:23.800 --> 0:01:26.959 twenty four and the ten year treasury down twenty thirty seconds. 0:01:26.959 --> 0:01:29.679 He'll four point one eight per set and the yield 0:01:29.720 --> 0:01:33.160 on the two year four point seven zero percent. Nathan, Karen, 0:01:33.200 --> 0:01:36.119 we begin with the Fed fueled sell off on Wall Street. 0:01:36.120 --> 0:01:38.600 The SNP five hundred suffered its worst route on a 0:01:38.640 --> 0:01:42.880 FED decision day since January one. The index plunged two 0:01:42.880 --> 0:01:45.760 and a half percent. As expected, the Fed did raise 0:01:45.880 --> 0:01:48.760 rates seventy five basis points for a fourth straight time, 0:01:49.000 --> 0:01:52.120 but stocks sold off. During j Powell's news conference, the 0:01:52.120 --> 0:01:54.600 FED chair made it clear more rate hikes are coming. 0:01:54.840 --> 0:01:57.920 It is very premature to be thinking about pausing. So 0:01:58.040 --> 0:02:00.200 people when they hear legs, they think about the about 0:02:00.200 --> 0:02:03.200 a pause. It's very premature in my view to to 0:02:03.200 --> 0:02:06.320 to think about or be talking about pausing our rate hip. 0:02:06.360 --> 0:02:08.040 We we haven't. We have a ways to go. Our 0:02:08.160 --> 0:02:12.079 policy we need ongoing rate hikes to get to UM 0:02:12.320 --> 0:02:14.840 to that level. The move by j Powell and the 0:02:14.840 --> 0:02:16.880 FED lifts the benchmark to a three and three quarter 0:02:16.960 --> 0:02:19.919 to four percent range from nearly zero in March, Well 0:02:20.000 --> 0:02:23.240 Nathan reaction poured into the FED keeping its aggressive tone. 0:02:23.320 --> 0:02:27.480 Scott Minored, as chief investment Officer, ed Guggenheim, the message 0:02:27.560 --> 0:02:30.360 is loud and clear. You know, we're going to keep 0:02:30.480 --> 0:02:35.560 raising rates until we get price stability, and that's probably 0:02:35.600 --> 0:02:39.600 gonna go into and Guggenheim. Scott Minor had said the 0:02:39.639 --> 0:02:42.520 FED may raise rates significantly higher than the five to 0:02:42.560 --> 0:02:44.720 five and a half percent markets are expecting in the 0:02:44.760 --> 0:02:46.840 first half of next year. We also cut up with 0:02:46.919 --> 0:02:50.839 black Rock senior portfolio manager Jeffrey Rosenberg. The FED does 0:02:50.919 --> 0:02:53.079 not want to see a replay of what we saw 0:02:53.120 --> 0:02:56.920 in July. It does not want to see premature financial 0:02:56.960 --> 0:03:02.200 condition easing on the sign of any FED pivot. Black 0:03:02.280 --> 0:03:06.000 Rocks Senior portfolio manager Jeffrey Rosenberry sentiments were echoed by 0:03:06.040 --> 0:03:10.000 former Philadelphia FED President Charles Plosser. They know they can't 0:03:10.360 --> 0:03:13.880 they can't just stop because it won't work. It's a 0:03:13.919 --> 0:03:18.160 story who experience teaches us that so um, they don't 0:03:18.200 --> 0:03:20.760 have much choice if they really wanted to come yet 0:03:20.919 --> 0:03:25.000 to Laura inflation. Former Philadelphia Fed President Charles Plaster made 0:03:25.000 --> 0:03:27.760 the comments in an interview with The Bloomberg's Kathleen Hayes. 0:03:28.080 --> 0:03:30.960 Not carrying the focus on monetary policy turns to Europe. 0:03:30.960 --> 0:03:33.560 The Bank of England's expected to deliver its biggest rate 0:03:33.600 --> 0:03:36.160 increase in thirty three years. We get a preview from 0:03:36.200 --> 0:03:40.119 Bloomberg's uin Plants in London. Another day, another jumbo rate hike, 0:03:40.200 --> 0:03:43.160 a seventy five basis point increase in the key UK 0:03:43.280 --> 0:03:46.240 industrates is now almost fully priced in by money markets. 0:03:46.480 --> 0:03:48.200 That would take the base rate from two and a 0:03:48.280 --> 0:03:51.800 quarter to three, the highest since two thousand and eight 0:03:52.040 --> 0:03:56.240 and the biggest single hike since Governor Andrew Bailey will 0:03:56.240 --> 0:03:58.840 give a press conference shortly after the announcement, which comes 0:03:58.880 --> 0:04:02.120 at midday. Investors also be watching out for the banks 0:04:02.120 --> 0:04:05.720 reports on the economic outlook, likely to confirm our session 0:04:05.920 --> 0:04:08.000 is now on the way. A loss has changed since 0:04:08.000 --> 0:04:11.360 the last forecast. The beginning of August beached up Government 0:04:11.400 --> 0:04:15.320 support for household energy bills will restrain inflation over the winter. 0:04:15.720 --> 0:04:18.120 After April the government is yet as set out as 0:04:18.120 --> 0:04:20.679 a plan. In London, I'm you in ports Back Daybreak, 0:04:20.880 --> 0:04:23.560 are you in? Thanks? In Asia, China has lockdown the 0:04:23.560 --> 0:04:27.040 world's largest iPhone factory, and Bloombergy Daybreak Asia anchor Brian 0:04:27.120 --> 0:04:30.320 Curtis has more from Hong Kong, China is not playing 0:04:30.320 --> 0:04:33.560 games with COVID zero. Authorities swooped in and put the 0:04:33.640 --> 0:04:36.560 zone around the jung Jo of fox Con plant off limits. 0:04:36.960 --> 0:04:39.599 It's the last thing that Apple needed, or that fox 0:04:39.680 --> 0:04:43.640 Con wanted, given the upcoming holiday season. First a COVID outbreak, 0:04:43.920 --> 0:04:47.640 then an enforced quarantine, and then an exodus of workers. 0:04:47.920 --> 0:04:50.760 They literally walked twenty miles to get home or to 0:04:50.920 --> 0:04:54.560 a train. Some two hundred thousand people work here. It's 0:04:54.560 --> 0:04:57.320 a stark reminder of the dangers for Apple in a 0:04:57.400 --> 0:05:01.240 COVID zero mindset. The lockdown runs until November nine, but 0:05:01.279 --> 0:05:04.320 it could go longer. In Hong Kong, Brian Curtis, Bloomberg 0:05:04.400 --> 0:05:06.640 day Break, All right, Brian, thank you. In corporate news, 0:05:06.680 --> 0:05:09.120 big job cuts are on the way at Twitter, Bloomberg 0:05:09.120 --> 0:05:11.680 News has learned new owner Elon Musk plans to eliminate 0:05:11.680 --> 0:05:15.279 about half the social media company's workforce. That's about thirty 0:05:15.279 --> 0:05:17.600 seven hundred jobs. We get more from Ed Ludlow and 0:05:17.600 --> 0:05:20.719 our Bloomberg nine sixty news room in San Francisco. Sources 0:05:20.800 --> 0:05:24.159 say that's the plan. The layoff list will be confirmed 0:05:24.200 --> 0:05:28.120 Friday and those affected will be informed. We we kind 0:05:28.120 --> 0:05:30.800 of knew this was coming, right. We reported over the 0:05:30.839 --> 0:05:35.240 weekend that manages across product teams have been asked to 0:05:35.320 --> 0:05:39.520 drop a list of candidates that would reduce headcount by 0:05:40.480 --> 0:05:45.479 um you know, and Musk has making his mark on 0:05:45.520 --> 0:05:48.839 this company. Bloomberg's Ed Ludlow says Musk also intends to 0:05:48.880 --> 0:05:52.400 reverse the company's existing work from Anywhere policy asking remaining 0:05:52.400 --> 0:05:55.800 employees to report to officers and Nathan. Job cuts may 0:05:55.800 --> 0:05:58.360 also be on the way at Morgan Stanley Writers is 0:05:58.400 --> 0:06:01.400 reporting the financial firm wilst are layoffs globally in the 0:06:01.440 --> 0:06:04.000 coming weeks. Several stocks are on the move this morning, Karen. 0:06:04.040 --> 0:06:07.880 Following earning, shares of Qualcom right now are down more 0:06:07.920 --> 0:06:11.200 than seven percent. The company delivered a far weaker forecast 0:06:11.240 --> 0:06:14.040 than expected. We get the details from Bloomberg's Charlie Pellett. 0:06:14.120 --> 0:06:17.800 Qualcom is the biggest maker of smartphone processors, and it 0:06:17.920 --> 0:06:21.280 says revenue will be nine point two to ten billion 0:06:21.320 --> 0:06:24.200 dollars in the fiscal first quarter. Now that compares with 0:06:24.279 --> 0:06:28.440 an average annalysts estimate of twelve billion dollars. The outlook 0:06:28.440 --> 0:06:31.760 suggests that the slumping market for consumer devices is eroding 0:06:32.000 --> 0:06:35.800 even faster than expected. Even before the report, the stock 0:06:35.880 --> 0:06:39.160 was down thirty eight percent this year, hurt by concerns 0:06:39.200 --> 0:06:43.520 that smartphone demand was on shaky ground In New York. 0:06:43.600 --> 0:06:46.599 Charlie Pellet Bloomberg daybreak. All right, Charlie, thank you. Some 0:06:46.640 --> 0:06:49.760 other movers this morning. Shares of Alts USA down more 0:06:49.760 --> 0:06:53.040 than twenty three percent, the broadband of video services providers 0:06:53.080 --> 0:06:57.279 earnings missing analysts estimate, shares of Roku down twenty The 0:06:57.360 --> 0:07:00.640 maker of set top boxes consumers used to watch stream services, 0:07:00.880 --> 0:07:04.159 forecast a wider than expected fourth quarter loss, and shares 0:07:04.160 --> 0:07:07.520 of Etsy up ten percent. The online marketplace for crafts 0:07:07.520 --> 0:07:11.080 and vintage items posted third quarter revenue and gross merchandise 0:07:11.160 --> 0:07:14.560 sales that top to analysts estimates. Straight ahead, we have 0:07:14.640 --> 0:07:17.560 your latest local headlines, plus a check of sports, and 0:07:17.760 --> 0:07:24.720 this is Bloomberg. Karen six, House seven on Wall Street, 0:07:24.760 --> 0:07:27.840 fifty four degrees in Central Park and overturned vehicleized northbound 0:07:27.920 --> 0:07:30.440 Nichols Road closed between Furrows Road and the l I E. 0:07:30.760 --> 0:07:33.120 We're coming up in traffic first Michael Barr with more 0:07:33.120 --> 0:07:35.320 on what's going on in New York and around the world. Michael, 0:07:35.360 --> 0:07:38.520 thank you very much. Nathan. Authorities say they got him. 0:07:38.520 --> 0:07:41.400 A two day man hunt ended in Newark, New Jersey, 0:07:41.400 --> 0:07:43.880 with the arrest of the suspects of police a shot 0:07:43.880 --> 0:07:48.200 to officers Tuesday. Police arrested thirty year old Kendall Howard yesterday, 0:07:48.280 --> 0:07:51.280 the suspect and the shooting of the two officers while 0:07:51.320 --> 0:07:55.400 they were serving a warrant swat storming a Newark apartment building, 0:07:55.400 --> 0:07:57.560 going door to door until they found him and brought 0:07:57.640 --> 0:08:01.040 him out. Essex County Acting prosecut to Ted Stephens says 0:08:01.080 --> 0:08:04.920 Howard will face charges. Mr. Howard has been charged with 0:08:05.400 --> 0:08:10.840 two counts of attempted murder of north police officers. Prosecuted 0:08:10.840 --> 0:08:14.680 Ted Stephens says the injured officers are hospitalized in stable condition. 0:08:15.040 --> 0:08:18.080 The convicted shooter in the Parkland, Florida High school massacre 0:08:18.160 --> 0:08:22.440 has been sentenced. Bloomberg's Ed Baxter reports Nicholas Crew sentenced 0:08:22.440 --> 0:08:26.040 for each of the students, whom seventeen for the murder 0:08:26.040 --> 0:08:29.920 in the first degree of Peter Way. The court incluses 0:08:29.960 --> 0:08:34.920 a mandatory life sentence without the possibility of parole. Judge 0:08:34.960 --> 0:08:39.480 Elizabeth Sharer handing down seventeen life sentences connected to the 0:08:39.520 --> 0:08:44.040 students involved. Those sentences are to be run consecutively, so 0:08:44.520 --> 0:08:49.880 seventeen lifetimes in total. There were thirty four sentences in 0:08:49.960 --> 0:08:52.640 San Francisco. I'm at Baxter Bloomberg Gaybreak. With the mid 0:08:52.760 --> 0:08:55.880 term elections just five days away, President Biden is warning 0:08:55.880 --> 0:08:59.000 about political violence and the speech last night, Biden said 0:08:59.080 --> 0:09:02.240 voters are choosing tween democracy and extremism and pointed the 0:09:02.240 --> 0:09:07.160 finger directly at former President Trump. American Democrats Center attacked 0:09:07.200 --> 0:09:11.040 because the defeated former president of the United States refused 0:09:11.080 --> 0:09:15.600 to accept the results election. President Biden then linked violence 0:09:15.600 --> 0:09:18.240 at the Capitol on January six to the recent attack 0:09:18.360 --> 0:09:22.040 on how speaker Nancy Pelosi's husband. Former President Donald Trump 0:09:22.080 --> 0:09:25.120 has settled a lawsuit filed by a group of protesters 0:09:25.120 --> 0:09:28.680 who say they were roughed up by the Republican's private 0:09:28.679 --> 0:09:33.439 security guards during his presidential campaign. The two sides settled 0:09:33.520 --> 0:09:35.880 as a jury was being selected in the New York 0:09:35.880 --> 0:09:38.439 court room for a civil trial the tales of the 0:09:38.480 --> 0:09:42.280 settlement were not divulged. The lawsuit alleges Trump's bodyguards attacked 0:09:42.360 --> 0:09:46.480 him outside his Manhattan skyscraper in September off as they 0:09:46.520 --> 0:09:50.720 protested negative comments Trump made about Mexico and Mexican immigrants. 0:09:51.000 --> 0:09:53.319 Global News twenty four hours a day on air and 0:09:53.480 --> 0:09:56.200 on Bloombergy Quick Take, powered by more than twenty seven 0:09:56.240 --> 0:09:59.480 hunder journalists and analysts more than twenty countries. I'm Michael Barren. 0:09:59.600 --> 0:10:06.679 This is Bloomberg, Nathan. All right, Michael, thanks six o 0:10:06.800 --> 0:10:08.800 nine on Wall Street. Time for the Bloomberg Sports upthing, 0:10:08.840 --> 0:10:10.559 brought to you by Tri State Out He with John 0:10:10.600 --> 0:10:13.360 stash Ower. All right, Nathan, Astros and Phillies Game four 0:10:13.400 --> 0:10:15.400 the World Series, the night after the Phillies won with 0:10:15.520 --> 0:10:18.000 US shut out. The Astros had a shutout, and that's 0:10:18.040 --> 0:10:21.960 not all they had. They have the pitch from Pressley 0:10:22.000 --> 0:10:24.720 is swinging a groundball to third. Pregnant has it the 0:10:24.880 --> 0:10:27.720 throw to first, and that will do it. The Astros 0:10:27.800 --> 0:10:31.000 even up the World Series with a five to nothing win. 0:10:31.080 --> 0:10:35.400 Did I and four of their pictures combined to no 0:10:35.679 --> 0:10:41.240 hit the Philadelphia Phillies. Yes, Pressley finishes off what Christian 0:10:41.360 --> 0:10:44.000 Javier started as being at the call. Houston scored all 0:10:44.040 --> 0:10:46.320 the games five runs on five hits in the fifth 0:10:46.320 --> 0:10:48.760 and in and the Phils could not touch Javier, who's 0:10:48.800 --> 0:10:51.880 on an amazing role, allowed only one hit in that start. 0:10:52.000 --> 0:10:55.600 Versus the Yankees in the ALCS and Xavier's last six starts, 0:10:55.679 --> 0:10:58.240 covering thirty four innings, he has not allowed to ron. 0:10:58.240 --> 0:11:01.040 He's never allowed more than two hits. The only previous 0:11:01.080 --> 0:11:03.600 World Series no hit of Don Larson's perfect game nineteen 0:11:03.679 --> 0:11:07.439 fifty six Pivotal Game five. Tonight, Houston's justin Verlands, still 0:11:07.480 --> 0:11:09.480 seeking his first World Series win. He's oh and six. 0:11:09.840 --> 0:11:12.240 The x met Noah Synderguard starts for the films. The 0:11:12.280 --> 0:11:15.040 game will be played while the NFL teams from Houston 0:11:15.080 --> 0:11:18.000 and Philly also meet at the Garden. Nick's led Atlanta 0:11:18.040 --> 0:11:21.319 by twenty three and then trailed by nineteen got outscored 0:11:21.440 --> 0:11:24.920 seventy nine to thirty seven. The Hawks one nine nine, 0:11:25.160 --> 0:11:27.439 led by off season pick up Demonte Murray scort a 0:11:27.480 --> 0:11:30.320 career high thirty six points. The Nets and Kyrie Irving 0:11:30.440 --> 0:11:33.280 jointly announced both will donate five hundred thousand dollars to 0:11:33.360 --> 0:11:36.520 anti hate causes. Irving last Saturday, somewhat double down on 0:11:36.600 --> 0:11:39.440 that posting of an anti Semitic video. He has natalist 0:11:39.440 --> 0:11:43.040 a statement that said he takes responsibility meant no harm, 0:11:43.320 --> 0:11:47.120 opposes all forms of hatred. John stash Netward, Bloomberg Sports, Stephen, 0:11:47.360 --> 0:11:50.240 thank you, John SMP futures down down nine points, Staff 0:11:50.280 --> 0:11:53.920 Futures down fifty seven. NAZAC Future is lower by thirty 0:11:53.960 --> 0:11:57.320 four points. The tenure Treasury down twenty three thirty seconds. 0:11:57.320 --> 0:12:00.920 Now the yield four point one nine per cent. You're 0:12:00.960 --> 0:12:08.599 listening to Bloomberg Daybreak and Bloomberg Sports was brought to 0:12:08.640 --> 0:12:10.680 you by Audie. Don't let someone else drive off in 0:12:10.679 --> 0:12:13.000 the Audi model. You've always wanted to visit your local 0:12:13.000 --> 0:12:15.000 try state autie dealer to get behind the wheel of 0:12:15.040 --> 0:12:22.520 yours today, or visit autie Offers dot com for more information, markets, 0:12:22.600 --> 0:12:25.679 headlines and breaking news twenty four hours a day at 0:12:25.720 --> 0:12:29.079 Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg 0:12:29.200 --> 0:12:39.000 Quick Tape He's a Bloomberg Business Flash and I'm Karen Moscow. 0:12:39.040 --> 0:12:42.439 And this updates brought to you by Cone Resnick Advisory Assurance, 0:12:42.520 --> 0:12:46.079 Tax before e s g Reshape Private Equity Investing. Cone 0:12:46.080 --> 0:12:49.880 Resne Health clients recognize the opportunities. Learn more at Cone 0:12:49.920 --> 0:12:53.320 Resnick dot com. Future is lower this morning with SMP 0:12:53.520 --> 0:12:56.160 future is down fourteen points now, futures down a hundred, 0:12:56.280 --> 0:12:59.520 nasdack futures down fifty and a tenure Treasury down twenty 0:13:00.160 --> 0:13:02.599 seconds held four point one nine percent. They yield on 0:13:02.679 --> 0:13:06.240 the two year four point seven n I'm excret oil 0:13:06.320 --> 0:13:08.160 down one and a half percent on a dollar thirty 0:13:08.200 --> 0:13:10.640 seven at eighty eight dollar sixty five cents a barrel. 0:13:10.920 --> 0:13:13.640 That's a Bloomberg business flash. Now here's Michael Barr with 0:13:13.679 --> 0:13:16.280 Moore on what's going on around the world. Michael Karen, 0:13:16.280 --> 0:13:18.719 thank you very much. President Joe Biden asked voters to 0:13:18.760 --> 0:13:21.600 consider the future of democracy when they vote in the 0:13:21.640 --> 0:13:26.480 next mid term elections next week. During last night's speech, 0:13:26.760 --> 0:13:30.160 Biden nerge voters to reject Donald Trump's big line, denying 0:13:30.240 --> 0:13:35.040 is defeat that fuel political extremism and violence. Christian Navier 0:13:35.200 --> 0:13:38.200 and the Astros Bullpen combined for just the second no 0:13:38.320 --> 0:13:42.000 hitter in World Series history Houston one Game four against 0:13:42.000 --> 0:13:44.160 the Phillies five zip to even the series at two 0:13:44.200 --> 0:13:48.120 games apiece. The NFL's Washington Commanders could be soon for sale. 0:13:48.640 --> 0:13:52.040 Owners Dan and Tennas Snyder say that they have hired 0:13:52.040 --> 0:13:56.120 Bank of America Securities to consider potential transactions in the NBA. 0:13:56.240 --> 0:13:59.640 The Knickson Celtics lost the Wizards won. Global News twenty 0:13:59.679 --> 0:14:03.000 four hours a day on air and on Bloomberg Quick Take, 0:14:03.280 --> 0:14:06.360 powered by more than twenty seven hundred journalists and analysts 0:14:06.400 --> 0:14:09.400 more than a hundred twenty countries. Michael Barr, this is Bloomberg. 0:14:09.480 --> 0:14:11.720 Nathan all right, Michael, thank you. It is six nineteen 0:14:11.800 --> 0:14:15.000 on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:15.040 --> 0:14:17.800 This is Bloomberg Daybreak as we continue to get market 0:14:17.840 --> 0:14:20.440 reaction to the FED decision and await the next move 0:14:20.520 --> 0:14:22.720 from the Bank of England. Were joined this morning by 0:14:22.760 --> 0:14:26.760 Bloomberg Opinion calumnist Marcus Ashworth. Marcus, good morning. So we 0:14:26.840 --> 0:14:29.280 got a lot of changes to the FED statement obviously, 0:14:29.360 --> 0:14:33.400 Chairman Powell now saying rates could go higher than previously expected, 0:14:33.440 --> 0:14:39.200 though the pace could slow soon. Does anything really change 0:14:39.360 --> 0:14:41.840 given that the market has been starting to price in 0:14:42.080 --> 0:14:46.720 slower rate moves from the Fed? Um SI difficult aslant 0:14:46.840 --> 0:14:49.840 it does. Things have changed in perceptions change, but the 0:14:49.920 --> 0:14:52.840 actual reality is no, not a lot of change in 0:14:52.880 --> 0:14:56.560 the sense that rates are higher. Uh, Pal, I'm looking 0:14:56.600 --> 0:14:59.320 for the far I actually think we catch has caught 0:14:59.320 --> 0:15:02.520 a lot of flak perhaps stateside, but you know, as 0:15:02.600 --> 0:15:05.480 far as handling the markets and expressing what they're up 0:15:05.520 --> 0:15:07.720 to and why, he does a far better job, I 0:15:07.840 --> 0:15:12.160 think than anyone in Europe, UK or whatever it does 0:15:12.480 --> 0:15:17.640 by comparison. So you know, slower, higher, longer is the 0:15:17.760 --> 0:15:21.040 three word synopsis. But you know he switched the debate 0:15:21.160 --> 0:15:23.520 from this sort of short sharp get the great heights 0:15:23.560 --> 0:15:27.160 in early two. You know you're going to have higher 0:15:27.240 --> 0:15:28.720 rates for a longer period, but we're not going to 0:15:28.760 --> 0:15:30.320 go at it quite as man. I think the Bank 0:15:30.400 --> 0:15:33.440 of England's recent having to step in and defend the 0:15:33.480 --> 0:15:36.840 guilt market is clearly reverber and through the FED thinking. 0:15:37.200 --> 0:15:40.040 But they're not. They have not changed their approach in 0:15:40.360 --> 0:15:42.640 the broader sense. They've just gone about it in a 0:15:42.720 --> 0:15:45.280 different way and signaled to that markets to the markets 0:15:45.400 --> 0:15:48.880 very effectively. Obviously, we saw initial reactions to those wording 0:15:49.000 --> 0:15:52.400 change with their right to note this king to tightening 0:15:52.640 --> 0:15:55.560 will have some kicking effect. However, they managed to switch 0:15:55.640 --> 0:15:58.640 the debate straight back to take away from what would 0:15:58.720 --> 0:16:01.840 ruin it all, which is markets expressing this pivot and 0:16:02.720 --> 0:16:05.640 loosening financial conditions is exactly what the FED doesn't want 0:16:05.680 --> 0:16:09.080 to happen. Very skillful. I think you raise a question there, 0:16:09.160 --> 0:16:12.040 I think of FED credibility. Obviously a lot of people 0:16:12.160 --> 0:16:14.480 think that the FED last credibility with the talk of 0:16:14.560 --> 0:16:17.640 the T word that we no longer say about inflation. 0:16:17.960 --> 0:16:20.760 Has the FED started to gain back some of its 0:16:20.800 --> 0:16:23.480 credibility with the tightening path that it's set out here. 0:16:24.400 --> 0:16:25.920 I think so. I mean, I mean, to my mind, 0:16:25.960 --> 0:16:28.080 I think they've been handling it very well. The big 0:16:28.160 --> 0:16:29.960 difference here is that a lot of people may say 0:16:30.040 --> 0:16:33.240 that too many FED speakers and whatever, but they are 0:16:33.320 --> 0:16:36.640 all pretty much in unison with each other. And that's 0:16:36.680 --> 0:16:38.880 again the other thing. You don't get that sense from 0:16:39.280 --> 0:16:41.120 other bank coming on obviously, you'd be that everyone's on 0:16:41.160 --> 0:16:43.440 the same page where the Fed we do now we 0:16:43.520 --> 0:16:45.640 know daily said a couple of slightly more moderate things. 0:16:45.880 --> 0:16:49.160 Brain art possibly as well, but really it's pretty mild. Uh. 0:16:49.280 --> 0:16:51.400 And I think that they're showing a united response, and 0:16:51.480 --> 0:16:55.520 clearly how Powell has phrased it last night was was 0:16:55.680 --> 0:16:58.480 I think you know a master class. Well, what's the 0:16:58.560 --> 0:17:00.760 policy path going to do for the economy. And I 0:17:00.840 --> 0:17:04.159 think now the debate turns to whether the FED is 0:17:04.200 --> 0:17:06.359 going to be able to achieve a soft landing with 0:17:06.560 --> 0:17:10.240 this kind of tightening and raising the possibility of slower 0:17:10.320 --> 0:17:13.119 hikes now while at the same time we're still seeing 0:17:13.200 --> 0:17:16.119 this tightness in the labor market. Yeah, and I think 0:17:16.800 --> 0:17:18.800 sput on there. But the point is is that what 0:17:19.080 --> 0:17:21.640 what power has basically moved away from a a soft 0:17:21.760 --> 0:17:23.720 landing and basically saying they're going to have to be 0:17:23.760 --> 0:17:26.119 a recession. What he's trying to say is we are 0:17:26.160 --> 0:17:28.040 not going to go out. This is hard to break 0:17:28.160 --> 0:17:30.520 things as clearly things that broke in the UK we 0:17:30.640 --> 0:17:33.240 don't want that. We see and hear the warriors and 0:17:33.280 --> 0:17:36.240 wobbles in the U S troasury market in particular. That's 0:17:36.240 --> 0:17:39.520 why it's going to be slower but longer, but probably higher, 0:17:39.640 --> 0:17:41.600 but I don't sure it will be higher. But the 0:17:41.640 --> 0:17:43.840 point is is he's having to have his his cake 0:17:43.880 --> 0:17:45.399 and eat it, as we can often say, out of here, 0:17:45.720 --> 0:17:47.880 because he's managed to get the effect he wanted, which 0:17:47.920 --> 0:17:51.720 is to keep bonnels high and not see financial positions loosen, 0:17:51.840 --> 0:17:54.440 all the stock market to go all sudden on a tear, 0:17:54.520 --> 0:17:57.040 thinking that it's all over the rates, the rate hikings 0:17:57.200 --> 0:17:59.480 turned because that's not what he wants. He wants to 0:17:59.560 --> 0:18:01.760 keep the mark, get on edge, on point for as 0:18:01.880 --> 0:18:04.640 long as possible, and when they're ready to slow things 0:18:04.680 --> 0:18:07.320 down and when they're ready to possibly stop hiking, it 0:18:07.320 --> 0:18:09.080 will be on the fence terms. And that I think 0:18:09.240 --> 0:18:12.680 is is police stable. But unfortunately the many of that 0:18:12.960 --> 0:18:15.120 is probably that there will be some form of recession 0:18:15.119 --> 0:18:17.000 in the US. I think about a minute left here, 0:18:17.040 --> 0:18:19.719 in about thirty seven minutes before the Bank of England decision, 0:18:19.760 --> 0:18:22.040 you kind of set out the challenge here for the 0:18:22.160 --> 0:18:25.879 policy makers. What are you looking for? I think they 0:18:26.000 --> 0:18:28.520 have to do semi five just because the ECB has 0:18:28.560 --> 0:18:31.720 done semi five. The said done semi five last time around, 0:18:31.760 --> 0:18:33.600 they went and went fifty. They could a lot of 0:18:33.640 --> 0:18:36.080 flat from it. Obviously, the world of other problems came in, 0:18:36.560 --> 0:18:40.000 but I don't think they've got much room to or 0:18:40.119 --> 0:18:42.159 desire to do any other than seventy five. There's a 0:18:42.280 --> 0:18:44.800 risk of fifty. They're gonna have to justify that though, 0:18:45.000 --> 0:18:47.320 But again I think they probably will be slightly more 0:18:47.359 --> 0:18:49.480 dublished on the back end as far as Hi raids 0:18:49.480 --> 0:18:51.960 will go open here and just quickly does the chaos 0:18:52.080 --> 0:18:54.320 of Rieshi soon act. Picking up the pieces from Liz 0:18:54.400 --> 0:18:56.720 Trust play into the day's decision for the b o E. 0:18:57.920 --> 0:19:00.560 I'm gonna say no, it shouldn't do this all the reasons. 0:19:00.600 --> 0:19:02.160 I think that's why they want to do seventy five, 0:19:02.240 --> 0:19:04.280 to make sure that they're sending a message that they 0:19:04.320 --> 0:19:06.000 are in control and they're doing what they think is 0:19:06.320 --> 0:19:08.760 needed to be on inflation. On the fiscal side. Now 0:19:08.840 --> 0:19:11.159 they can relax a bit on but it doesn't it 0:19:11.280 --> 0:19:14.200 means they could focus that for away from the fiscal concept. 0:19:14.480 --> 0:19:18.160 Sellu the monetary ways to keeping control on the great 0:19:18.160 --> 0:19:20.080 to talk with you this morning, Marcus. Thanks for this. 0:19:20.240 --> 0:19:23.639 Marcus Ashworth, columnist for Bloomberg Opinion. Find his stuff and 0:19:23.840 --> 0:19:27.800 I Ashworth go on the Bloomberg terminal. All our opinion 0:19:27.880 --> 0:19:30.880 pieces are on O, P, I N Go and at 0:19:30.920 --> 0:19:34.920 Bloomberg dot com Slash Opinion. Looking ahead to the market 0:19:34.960 --> 0:19:38.679 open this morning, Wall Street moving lower after the route 0:19:38.760 --> 0:19:42.439 yesterday following Chairman Palace comments. S and P futures are 0:19:42.520 --> 0:19:46.080 down sixteen points, Dow futures down a hundred eight NASDAC 0:19:46.160 --> 0:19:49.280 futures are lower by fifty seven points ten, Your treasuries 0:19:49.320 --> 0:19:52.200 down twenty three thirty seconds. The yield of four point 0:19:52.280 --> 0:19:55.280 one nine percent on the benchmark two year yield now 0:19:55.359 --> 0:19:58.680 at four point seven two British pound ahead of the 0:19:58.720 --> 0:20:01.240 b o E decision one point one to four five 0:20:01.280 --> 0:20:08.480 against the dollar. This is Bloomberg Bloomberg Daybreak, brought to 0:20:08.480 --> 0:20:11.000 you by ancient accountants and advisors, the right fit tax 0:20:11.080 --> 0:20:13.520 and accounting firm that you need to succeed. Visit the 0:20:13.600 --> 0:20:16.000 manacion dot com slash v i P to learn more. 0:20:16.080 --> 0:20:23.200 That's Ancient dot com slash v i P broadcasting live 0:20:23.400 --> 0:20:27.320 from the Bloomberg Interactive Broker Studio in New York. Bloomberg 0:20:27.359 --> 0:20:31.399 E Loving Freedom to Washington, d C, Bloomberg to Boston, 0:20:31.520 --> 0:20:34.800 Bloomberg one O six one to San Francisco, Bloomberg N 0:20:35.040 --> 0:20:38.280 sixty to the Country Sirius XM Chado one ninet and 0:20:38.359 --> 0:20:41.720 around the globe the Bloomberg Business app and Bloomberg Radio 0:20:41.840 --> 0:20:50.840 dot Com. This is Bloomberg Daybreak. It's six thirty on 0:20:50.920 --> 0:20:54.160 Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. 0:20:54.280 --> 0:20:56.600 We are just about three hours away from the Open 0:20:56.640 --> 0:20:58.440 of US training It's time for the five things that 0:20:58.560 --> 0:21:00.520 you need to notice start your day. Brought to you 0:21:00.680 --> 0:21:04.440 by Interactive Brokers ib k R, event Trader offers a 0:21:04.520 --> 0:21:07.600 new way to trade futures. Use event contracts to trade 0:21:07.680 --> 0:21:10.240 your opinion on yes or no questions and key CME 0:21:10.400 --> 0:21:14.440 futures markets. Learn more at event trader dot Interactive Brokers 0:21:14.600 --> 0:21:17.800 dot com. At first, US futures are lower after a 0:21:17.920 --> 0:21:20.800 hawk ish FED led to a Wall Street sell off Yesterday. 0:21:21.160 --> 0:21:24.000 As expected, at Central Bank raised interest rates seventy five 0:21:24.000 --> 0:21:27.080 basis points, but stock sold off when Fed chair J 0:21:27.280 --> 0:21:30.879 Powell made clear monetary tightening still has a ways to go. 0:21:31.560 --> 0:21:34.480 We still have some ways to go, and incoming data 0:21:34.560 --> 0:21:37.600 since our last meeting suggests that the ultimate level of 0:21:37.680 --> 0:21:41.040 interest rates will be higher than previously expected to move 0:21:41.119 --> 0:21:43.440 by J. Powell. I'm a FED lifts the benchmark to 0:21:43.560 --> 0:21:46.200 a three point seven five percent to four percent range 0:21:46.240 --> 0:21:49.240 from nearly zero in March. Well reaction poured into the 0:21:49.280 --> 0:21:53.320 Fed's aggressive tone. Karen I Capital chief investment strategist Anastasia 0:21:53.440 --> 0:21:57.120 Murosso says traders are left with an uncertain path ahead. Initially, 0:21:57.400 --> 0:21:59.800