1 00:00:02,040 --> 00:00:05,320 Speaker 1: Live from a Bloomberg interactive Burger Studios. This is Bloomberg 2 00:00:05,360 --> 00:00:09,120 Speaker 1: Day Right for Thursday, October six two. Coming up this hour. 3 00:00:09,440 --> 00:00:13,760 Speaker 1: Beneficials say the expectation for rate cuts next year is misplaced. 4 00:00:14,000 --> 00:00:17,160 Speaker 1: The U S slams OPEC's decision to kur production. Elon 5 00:00:17,239 --> 00:00:20,160 Speaker 1: must have wanted to slash his takeover price for Twitter, 6 00:00:20,239 --> 00:00:22,800 Speaker 1: and hundreds of billions of dollars in market value have 7 00:00:22,920 --> 00:00:26,200 Speaker 1: it wiped away? In the first month of this trust's government. 8 00:00:26,360 --> 00:00:29,040 Speaker 1: New York City Council members are calling for housing asylum 9 00:00:29,120 --> 00:00:32,360 Speaker 1: seekers and hotels and churches instead of Randall's Island. Plus 10 00:00:32,400 --> 00:00:34,960 Speaker 1: more missile launches from North Korea on Mike Blood Blown 11 00:00:35,040 --> 00:00:37,920 Speaker 1: More Ahead, I'm John Stash Howard. Sports the baseball regular 12 00:00:37,920 --> 00:00:40,519 Speaker 1: season and then the Yankees lost the Mets one. They 13 00:00:40,560 --> 00:00:45,839 Speaker 1: begin the postseason tomorrow night. That's all trading ahead on 14 00:00:45,920 --> 00:00:49,320 Speaker 1: Bloomberg Day Break on Bloomberg eleven, Free on New York, 15 00:00:49,520 --> 00:00:54,160 Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 16 00:00:54,480 --> 00:00:58,640 Speaker 1: Bloomberg nine sixty, San Francisco, Sirius x AM one nine 17 00:00:58,640 --> 00:01:01,560 Speaker 1: Team and around the world. Old on Bloomberg Radio dot 18 00:01:01,600 --> 00:01:07,959 Speaker 1: Com and via the Bloomberg Business app and good morning. 19 00:01:08,000 --> 00:01:11,039 Speaker 1: I'm Kared Moscow. I'm Nathan Haygar. Bloomberg Daybreak is brought 20 00:01:11,080 --> 00:01:13,000 Speaker 1: to you by B and Y Melon's Pershing Learned why 21 00:01:13,040 --> 00:01:16,520 Speaker 1: the world's most sophisticated wealth management and institutional firms rely 22 00:01:16,600 --> 00:01:20,600 Speaker 1: on Pershing to help them improve profitability, create efficiency, attract talent, 23 00:01:20,720 --> 00:01:24,160 Speaker 1: and manage risk at Pershing dot Com and US futures 24 00:01:24,200 --> 00:01:26,520 Speaker 1: are lower this morning six o one on Wall Street. 25 00:01:26,560 --> 00:01:29,120 Speaker 1: We checked the markets every fifteen minutes throughout the trading day. 26 00:01:29,200 --> 00:01:32,360 Speaker 1: On Bloomberg, SMP futures down twenty five points now futures 27 00:01:32,360 --> 00:01:35,319 Speaker 1: down a hundred seventy eight and NASDACK futures are down 28 00:01:35,319 --> 00:01:38,520 Speaker 1: eighty one. Tenure treasury down to thirty seconds here three 29 00:01:38,560 --> 00:01:41,240 Speaker 1: point seven six percent, Nathan, we're caring. The drop in 30 00:01:41,319 --> 00:01:44,200 Speaker 1: futures follows a late day come back on Wall Street yesterday. 31 00:01:44,200 --> 00:01:46,120 Speaker 1: It fell as much as one point eight percent, but 32 00:01:46,319 --> 00:01:49,120 Speaker 1: ended the session for the SMP five hundred down two 33 00:01:49,120 --> 00:01:52,680 Speaker 1: tenths percent, fueled by a big options trade. Aaron Kennon, 34 00:01:52,760 --> 00:01:55,280 Speaker 1: CEO at Clear Harbor Asset Management, says a drop in 35 00:01:55,360 --> 00:01:57,640 Speaker 1: earnings is not being priced in yet. I think a 36 00:01:58,040 --> 00:02:01,800 Speaker 1: very shallow recession, I would argue is probably priced in. 37 00:02:02,040 --> 00:02:04,920 Speaker 1: But if we are seeing some sort of double digit 38 00:02:05,120 --> 00:02:10,520 Speaker 1: decline and let's say sparnings next year, that's probably not 39 00:02:10,639 --> 00:02:15,360 Speaker 1: yet priced into the market. Aaron Kennon A clear Heartborasset Management, 40 00:02:15,360 --> 00:02:17,960 Speaker 1: says tomorrow's jobs report will be a key indicator for 41 00:02:18,000 --> 00:02:21,240 Speaker 1: the path ahead well Nathan Feder Reserve officials are repeating 42 00:02:21,280 --> 00:02:24,360 Speaker 1: the mantra that they don't plan to cut interest rates 43 00:02:24,400 --> 00:02:27,320 Speaker 1: next year. San Francisco FED President Mary Daily and Atlanta 44 00:02:27,360 --> 00:02:29,840 Speaker 1: FED chief Raphael Bostick are the latest to bang the 45 00:02:29,919 --> 00:02:32,600 Speaker 1: drum on the need to keep tightening. We spoke yesterday 46 00:02:32,680 --> 00:02:35,840 Speaker 1: with Daily, by c U says raising to a level 47 00:02:35,919 --> 00:02:39,959 Speaker 1: that we believe is restrictive enough to bring inflation down, 48 00:02:40,240 --> 00:02:43,560 Speaker 1: and then holding it there until we see inflation truly 49 00:02:43,600 --> 00:02:48,160 Speaker 1: get close to two and and demonstrate that price stability 50 00:02:48,200 --> 00:02:51,840 Speaker 1: is restored. Mary Dailey's comments are being echoed by Atlanta 51 00:02:51,880 --> 00:02:54,840 Speaker 1: Fed President Raphael Bostick, who says rates still need to 52 00:02:54,880 --> 00:02:57,160 Speaker 1: go much higher. I'd like to reach a point where 53 00:02:57,240 --> 00:03:00,320 Speaker 1: policy is moderately restrictive, somewhere between four at four and 54 00:03:00,360 --> 00:03:02,200 Speaker 1: a half percent by the end of this year, and 55 00:03:02,240 --> 00:03:04,800 Speaker 1: then hold of that level and see how the economy 56 00:03:04,960 --> 00:03:08,480 Speaker 1: and prices react. Now. The NFL president Raphael Bostake says 57 00:03:08,520 --> 00:03:11,440 Speaker 1: there are encouraging signs on inflation, but he still sees 58 00:03:11,480 --> 00:03:14,640 Speaker 1: the overall picture is challenging. Let's turn to oil now Karen, 59 00:03:14,680 --> 00:03:17,840 Speaker 1: where a production cut by OPEC is making waves. Prices 60 00:03:17,840 --> 00:03:20,359 Speaker 1: are currently steady a day after OPEC agreed to the 61 00:03:20,400 --> 00:03:23,919 Speaker 1: biggest production cut since twenty twenty. The Alliance plans to 62 00:03:23,960 --> 00:03:27,239 Speaker 1: slash daily output by two million barrels. Saw the Energy 63 00:03:27,240 --> 00:03:29,760 Speaker 1: Minister Prince Abdulaz he has been salmon, spoke with us 64 00:03:29,760 --> 00:03:33,320 Speaker 1: in Vienna. I don't want people to think that this 65 00:03:33,440 --> 00:03:37,040 Speaker 1: is when waste in this case. No, it's a variety 66 00:03:37,160 --> 00:03:41,920 Speaker 1: of conbluting uncertainties. And they could go yesterday altogether and 67 00:03:41,960 --> 00:03:44,560 Speaker 1: to the positive side or to the negative side, or 68 00:03:44,560 --> 00:03:47,720 Speaker 1: it could be accompanition. Saw the Energy Minister, Prince Abdulazi 69 00:03:47,760 --> 00:03:50,160 Speaker 1: has been salmon, says the US lead initiative to slap 70 00:03:50,200 --> 00:03:53,080 Speaker 1: a price camp on Russian oil is adding to market uncertainty. 71 00:03:53,320 --> 00:03:55,640 Speaker 1: Checking prices now, they moved to take lower now with 72 00:03:55,840 --> 00:03:57,960 Speaker 1: nime ex screwed down a tenth percent or ten cents 73 00:03:57,960 --> 00:04:00,640 Speaker 1: at eighty seven dollar sixty seven cents of barrel. Brent 74 00:04:00,920 --> 00:04:04,720 Speaker 1: is little changed, down six cents at thirty one cents. Well, 75 00:04:04,760 --> 00:04:07,400 Speaker 1: the White House is pushing back against opex decision occur 76 00:04:07,560 --> 00:04:11,240 Speaker 1: production Nathan, calling the move unnecessary and short sighted. We 77 00:04:11,320 --> 00:04:14,680 Speaker 1: discussed the matter with National Economic Council Director Brian D's. 78 00:04:14,880 --> 00:04:17,560 Speaker 1: As the President mentioned, we think it's unnecessary if you 79 00:04:17,680 --> 00:04:21,800 Speaker 1: look at the global environment, where supply continues to be 80 00:04:21,960 --> 00:04:25,280 Speaker 1: the predominant challenge. We've been working for some time to 81 00:04:25,880 --> 00:04:29,600 Speaker 1: take action and encourage action globally to make sure that 82 00:04:29,680 --> 00:04:33,480 Speaker 1: supply actually matches demand. White House Economic Advisor Brian d 83 00:04:33,680 --> 00:04:36,040 Speaker 1: said the US or release ten million barrels from the 84 00:04:36,080 --> 00:04:39,720 Speaker 1: Strategic Petroleum Reserve this month. He's also calling on gasoline 85 00:04:39,720 --> 00:04:42,600 Speaker 1: companies to close the gap between wholesale and retail prices 86 00:04:42,640 --> 00:04:44,800 Speaker 1: at the pump. Let's turn to the UK, now Karen, 87 00:04:44,800 --> 00:04:48,520 Speaker 1: where political turmoil is still weighing on investor sentiment. Hundreds 88 00:04:48,520 --> 00:04:50,800 Speaker 1: of billions of dollars have been wiped from the nation's 89 00:04:50,839 --> 00:04:53,320 Speaker 1: stock and bond markets in the first month of Liz 90 00:04:53,400 --> 00:04:56,400 Speaker 1: Trust's government. Let's get more from Bloomberg's U and Potts 91 00:04:56,440 --> 00:04:59,120 Speaker 1: in London. Good morning, good morning, night and Karen three 92 00:04:59,160 --> 00:05:02,680 Speaker 1: hundred and aty billion dollars. That's the total knocked off 93 00:05:02,720 --> 00:05:05,360 Speaker 1: the value of UK stocks and bonds over the past month. 94 00:05:05,640 --> 00:05:08,520 Speaker 1: While I said's globally have been royal by central banks tightening, 95 00:05:08,760 --> 00:05:11,920 Speaker 1: confidence in the UK has taken a real battering. The 96 00:05:11,960 --> 00:05:14,679 Speaker 1: September set off on the new government's unfounded tax cuts 97 00:05:14,680 --> 00:05:17,080 Speaker 1: saw the pound hits a record low against the dollar, 98 00:05:17,360 --> 00:05:19,960 Speaker 1: interventioned by the Bank of England and a swift climbed 99 00:05:20,000 --> 00:05:23,240 Speaker 1: down by the Chancellor One Strategies, though, says some investors 100 00:05:23,279 --> 00:05:27,080 Speaker 1: currently consider the UK as uninvestable. In London, i'mun part 101 00:05:27,120 --> 00:05:29,200 Speaker 1: spin Back, Day break, hery new and thank you. Back 102 00:05:29,240 --> 00:05:31,320 Speaker 1: Here in the US, we're learning more about the details 103 00:05:31,320 --> 00:05:34,279 Speaker 1: behind Elon must takeover of Twitter. Turns out he was 104 00:05:34,279 --> 00:05:36,400 Speaker 1: pushing for a lower price behind the scenes, and we 105 00:05:36,440 --> 00:05:40,160 Speaker 1: get the details from Bloomberg's Lisa Mateo. Sources say Musks 106 00:05:40,240 --> 00:05:43,320 Speaker 1: representatives and Twitter held talks in the past few weeks 107 00:05:43,360 --> 00:05:45,559 Speaker 1: about a buy out for less than fifty four dollars 108 00:05:45,600 --> 00:05:48,040 Speaker 1: and twenty cents of share, but they didn't go anywhere. 109 00:05:48,240 --> 00:05:50,839 Speaker 1: The New York Times reported Musk had sought a thirty 110 00:05:50,880 --> 00:05:53,839 Speaker 1: percent reduction in the price. This week must set in 111 00:05:53,839 --> 00:05:55,840 Speaker 1: a letter to Twitter that he would be willing to 112 00:05:55,880 --> 00:05:59,039 Speaker 1: complete the deal for the original price. In another development, 113 00:05:59,120 --> 00:06:02,000 Speaker 1: the two sides of greed to postpone the billionaires long 114 00:06:02,040 --> 00:06:05,920 Speaker 1: awaited deposition today in the company's lawsuit aimed at forcing 115 00:06:06,000 --> 00:06:09,039 Speaker 1: him to go through with the forty four billion dollar buyout. 116 00:06:09,320 --> 00:06:12,599 Speaker 1: Lisa Mateo Bloomberg Daybreak. Thanks Lisa, We have word of 117 00:06:12,600 --> 00:06:16,080 Speaker 1: more corporate job cuts. This morning. General Electric is slashing 118 00:06:16,080 --> 00:06:20,120 Speaker 1: positions that it's onshore wind turbine manufacturing business. Bloomberg News 119 00:06:20,160 --> 00:06:23,760 Speaker 1: has learned GE will reduce its US onshore windworkforce by 120 00:06:24,200 --> 00:06:27,760 Speaker 1: that's hundreds of jobs, moves designed to counter mounting losses 121 00:06:27,800 --> 00:06:30,800 Speaker 1: at its renewable energy unit. And finally, news on the 122 00:06:30,880 --> 00:06:34,200 Speaker 1: pandemic this morning, Nathan American Express ending our requirement that 123 00:06:34,279 --> 00:06:37,280 Speaker 1: employees need to be vaccinated against COVID nineteen to enter 124 00:06:37,360 --> 00:06:40,120 Speaker 1: the office. We get the story from Bloomberg's Charlie Pellett. 125 00:06:40,480 --> 00:06:44,320 Speaker 1: This takes effect November one, stand It applies to offices 126 00:06:44,360 --> 00:06:48,560 Speaker 1: across the United States, Canada, Australia, and New Zealand, all 127 00:06:48,600 --> 00:06:51,960 Speaker 1: according to an internal memo two staff seen by Bloomberg. 128 00:06:52,160 --> 00:06:54,720 Speaker 1: The New York based credit card company has been one 129 00:06:54,720 --> 00:06:58,400 Speaker 1: of the few financial firms to embrace remote work in 130 00:06:58,480 --> 00:07:02,000 Speaker 1: the aftermath of the pandemic in New York. Charlie Pellette 131 00:07:02,000 --> 00:07:05,240 Speaker 1: Bloomberg day Break, Charlie, Thanks, futures are moving lower now, 132 00:07:05,400 --> 00:07:07,880 Speaker 1: S and P futures down twenty six point. Staff futures 133 00:07:07,880 --> 00:07:10,320 Speaker 1: down a hundred seventy one. Nastack futures are lower by 134 00:07:10,360 --> 00:07:13,080 Speaker 1: eighty four points. In the tenure treasuries down five thirty 135 00:07:13,080 --> 00:07:17,040 Speaker 1: seconds yield three point seven seven percent. Local headlines and 136 00:07:17,080 --> 00:07:23,040 Speaker 1: a check of sports up next, This is Bloomberg and 137 00:07:23,080 --> 00:07:24,880 Speaker 1: at six oh seven on Wall Street where fifty four 138 00:07:24,880 --> 00:07:27,520 Speaker 1: degrees in Central Park still got that overturned tractor trailer 139 00:07:27,520 --> 00:07:29,720 Speaker 1: on the northbound New Jersey Turnpike on ran from Roote 140 00:07:29,760 --> 00:07:32,840 Speaker 1: eight team more coming up in traffic first, Michael Barr 141 00:07:32,840 --> 00:07:34,680 Speaker 1: with what else is going on in New York and 142 00:07:34,720 --> 00:07:37,000 Speaker 1: around the world. Michael, thank you very much. Nathan, New 143 00:07:37,080 --> 00:07:40,280 Speaker 1: York City Council members are proposing housing asylum seekers and 144 00:07:40,360 --> 00:07:44,360 Speaker 1: hotels and churches. The ideas from last night's council meet 145 00:07:44,400 --> 00:07:48,040 Speaker 1: income after Mayor Eric Adams now wants to house migrants 146 00:07:48,040 --> 00:07:51,920 Speaker 1: in a tent city at Randall's Island. Mayor Adams scrapped 147 00:07:51,920 --> 00:07:54,480 Speaker 1: the original idea of having the migrant relief center in 148 00:07:54,640 --> 00:07:58,840 Speaker 1: Orchard Beach after opposition from both sides of the debate. However, 149 00:07:58,920 --> 00:08:02,680 Speaker 1: critics say the new Andal's Island location will still have 150 00:08:02,760 --> 00:08:06,560 Speaker 1: the same problems, including access from migrants to get jobs, healthcare, 151 00:08:06,880 --> 00:08:10,520 Speaker 1: and schools. President Biden will be in New York State today. 152 00:08:10,640 --> 00:08:13,640 Speaker 1: You will visit a jobs event at an IBM campus 153 00:08:13,640 --> 00:08:17,280 Speaker 1: in Poughkeepsie. IBM will announce plans to invest twenty billion 154 00:08:17,320 --> 00:08:20,320 Speaker 1: dollars over the next decade of the campus. The President 155 00:08:20,360 --> 00:08:23,960 Speaker 1: will also attend a Democratic fundraiser in New Jersey. Yesterday, 156 00:08:24,000 --> 00:08:28,520 Speaker 1: President Biden visited southwest Florida, pledging support for storm victims 157 00:08:28,520 --> 00:08:31,680 Speaker 1: who lost everything to Hurricane Ian. I promise you we're 158 00:08:31,680 --> 00:08:33,840 Speaker 1: gonna be with you every step of the way. The 159 00:08:33,880 --> 00:08:37,040 Speaker 1: people of Florida to all of you, We're in this together. 160 00:08:37,280 --> 00:08:41,600 Speaker 1: The President got a warm welcome from Florida Governor Rhonda Santis. Mr. President, 161 00:08:41,600 --> 00:08:46,040 Speaker 1: Welcome to Florida. We appreciate working together across various levels 162 00:08:46,040 --> 00:08:49,080 Speaker 1: of government. Biden said. He and to Santists have put 163 00:08:49,160 --> 00:08:52,400 Speaker 1: politics aside, focused on the storm, and have been in 164 00:08:52,440 --> 00:08:56,680 Speaker 1: complete lockstep. More than thirty people, primarily children, were killed 165 00:08:56,679 --> 00:08:58,960 Speaker 1: today when a gunman opened fun here in a child 166 00:08:59,040 --> 00:09:03,000 Speaker 1: care center in northeastern Thailand. Authorities said the gunman took 167 00:09:03,040 --> 00:09:06,280 Speaker 1: his own life. It's a tragic discovery and a horrific 168 00:09:06,320 --> 00:09:10,200 Speaker 1: crime for family members kidnapped from a business in central 169 00:09:10,240 --> 00:09:14,319 Speaker 1: California have been found dead. Merce Head County Sheriff Vernon 170 00:09:14,360 --> 00:09:18,600 Speaker 1: Warnkers said last night that one suspect is hospitalized after 171 00:09:18,640 --> 00:09:21,359 Speaker 1: trying to kill himself, but there may be other suspects 172 00:09:22,280 --> 00:09:25,360 Speaker 1: just lived inside. Because this was completely totally senseless. We 173 00:09:25,400 --> 00:09:27,960 Speaker 1: have a whole family wiped out and for what we 174 00:09:28,000 --> 00:09:31,040 Speaker 1: don't know yet. Authorities have released surveillance video of a 175 00:09:31,080 --> 00:09:34,120 Speaker 1: man kidnapping a baby, the child's mother, father, and uncle 176 00:09:34,160 --> 00:09:37,480 Speaker 1: on Monday. North Korea fire to suspect a short range 177 00:09:37,480 --> 00:09:41,600 Speaker 1: ballistic missiles today towards waters where a US aircraft carrier 178 00:09:41,679 --> 00:09:43,959 Speaker 1: had been deployed to ratcheting up tensions in the region. 179 00:09:44,320 --> 00:09:47,400 Speaker 1: It came shortly after North Korea condemned the Biden administration 180 00:09:47,440 --> 00:09:50,840 Speaker 1: for redeploying the U S. S. Ronald Reagan aircraft carrier 181 00:09:50,880 --> 00:09:54,040 Speaker 1: to waters east of the Peninsula. Global News twenty four 182 00:09:54,040 --> 00:09:57,120 Speaker 1: hours a day on air and on Bloomberg Quicktake, powered 183 00:09:57,120 --> 00:09:59,719 Speaker 1: by more than hundred journalists and analysts more than a 184 00:09:59,800 --> 00:10:03,319 Speaker 1: hundre twenty countries. I'm Michael Barron. This is Bloomberg, Nathan. 185 00:10:03,400 --> 00:10:10,000 Speaker 1: Thanks Michael almost six cent on All Street time for 186 00:10:10,040 --> 00:10:12,800 Speaker 1: the Bloomberg Sports Update with John Stenshown all right. Eight 187 00:10:12,840 --> 00:10:15,480 Speaker 1: to The baseball regular season is over. The Dodgers won 188 00:10:15,520 --> 00:10:17,840 Speaker 1: a hundred eleven games, the most of the National late 189 00:10:17,920 --> 00:10:20,720 Speaker 1: since the nineteen oh six Cubs. The Mets and Braves 190 00:10:20,760 --> 00:10:23,439 Speaker 1: both won a hundred and one finished tied for first, 191 00:10:23,440 --> 00:10:26,560 Speaker 1: but Atlanta won the season series ten to nine, and 192 00:10:26,559 --> 00:10:28,360 Speaker 1: that's why the Braves at the first round by and 193 00:10:28,360 --> 00:10:30,280 Speaker 1: the Mets have to play a best of three wild 194 00:10:30,280 --> 00:10:33,360 Speaker 1: card series with San Diego. All the games at City Field. 195 00:10:33,400 --> 00:10:36,120 Speaker 1: The openers tomorrow night with a terrific pitching matchup. It 196 00:10:36,120 --> 00:10:39,160 Speaker 1: will be match ters or against the Pondres, You Darvers. 197 00:10:39,160 --> 00:10:41,400 Speaker 1: Mets finished up and in Washington nine to two. Jeff 198 00:10:41,480 --> 00:10:43,640 Speaker 1: McNeill got the day off and he was able to 199 00:10:43,720 --> 00:10:46,640 Speaker 1: just barely hold off Freddie Freeman and win the National 200 00:10:46,760 --> 00:10:49,439 Speaker 1: League Batting until I don't Neil hit three twenty six. 201 00:10:49,800 --> 00:10:52,720 Speaker 1: He hit two forty nine last season kind of hard 202 00:10:52,720 --> 00:10:55,640 Speaker 1: work and um, you know, trying to get back to 203 00:10:56,080 --> 00:10:57,520 Speaker 1: you know, the player I knew I could be, you 204 00:10:57,520 --> 00:10:59,559 Speaker 1: know after last year and the last year wasn't a 205 00:10:59,600 --> 00:11:01,920 Speaker 1: great year for me, so um, you know, kind of 206 00:11:02,000 --> 00:11:04,120 Speaker 1: wanted to you know, get back to you know who 207 00:11:04,120 --> 00:11:06,719 Speaker 1: I am, and um, you know, it was lucky enough 208 00:11:06,720 --> 00:11:08,920 Speaker 1: to be rewarded for that. Aaron Judge didn't play the 209 00:11:09,000 --> 00:11:11,600 Speaker 1: Yankee season ending for to loss of Texas, did not 210 00:11:11,679 --> 00:11:13,720 Speaker 1: win the batting Tyler would have given him the Triple 211 00:11:13,800 --> 00:11:16,679 Speaker 1: Crown judgment. A second of the twin. Luisa Ray is 212 00:11:16,720 --> 00:11:18,800 Speaker 1: the guy who caught the ball that Judge hit for 213 00:11:18,800 --> 00:11:21,240 Speaker 1: his record breaking sixty second home run, has already been 214 00:11:21,240 --> 00:11:24,160 Speaker 1: offered two million dollars by a sports member of Billia. 215 00:11:24,200 --> 00:11:27,920 Speaker 1: Aption now at Giants practice before they leave today for London. 216 00:11:27,960 --> 00:11:30,440 Speaker 1: A welcome sighte the return of center Nick Gates, who 217 00:11:30,480 --> 00:11:33,560 Speaker 1: in Week two last year supper Day fracture leg injury 218 00:11:33,559 --> 00:11:36,200 Speaker 1: that required seven surgeries. It was feared that it was 219 00:11:36,200 --> 00:11:38,199 Speaker 1: going to end Gates's career. It's not known when he'll 220 00:11:38,480 --> 00:11:41,160 Speaker 1: actually playing a game. Daniel Jones limited in practice with 221 00:11:41,200 --> 00:11:43,480 Speaker 1: his ankle injury, but Jones has not yet been ruled 222 00:11:43,480 --> 00:11:46,360 Speaker 1: out first Sunday's game of Green Day, John Stashu or 223 00:11:46,440 --> 00:11:49,920 Speaker 1: Bloomberg Sports Nathan, Thank you, John stp. Futures are moving 224 00:11:49,960 --> 00:11:53,240 Speaker 1: lower now down seven tenths per center, twenty six points down. 225 00:11:53,360 --> 00:11:56,440 Speaker 1: Futures are down a hundred seventy six points. Nasdaq Future 226 00:11:56,480 --> 00:11:59,040 Speaker 1: is lower by eighty six points. We'll talk about this 227 00:11:59,080 --> 00:12:03,000 Speaker 1: market next if Liz Ann Saunders of Charles Schwab, this 228 00:12:03,559 --> 00:12:09,600 Speaker 1: is Bloomberg Bloomberg eleven three oh weather sunshine low seventies 229 00:12:09,600 --> 00:12:12,600 Speaker 1: today and tomorrow. Lots of sun on Saturday, but cooler 230 00:12:12,640 --> 00:12:15,280 Speaker 1: only near sixty degrees will be in the low sixties 231 00:12:15,320 --> 00:12:18,160 Speaker 1: in the sunshine by Sunday. Right now fifty four in 232 00:12:18,200 --> 00:12:25,120 Speaker 1: Central Park markets. Headlines and breaking news twenty four hours 233 00:12:25,120 --> 00:12:28,079 Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business Out 234 00:12:28,160 --> 00:12:38,000 Speaker 1: and at Bloomberg Quicktape's a Bloomberg Business Flash and I'm 235 00:12:38,080 --> 00:12:40,880 Speaker 1: Karen Moscow. US Dock Index futures are falling as the 236 00:12:40,880 --> 00:12:45,160 Speaker 1: OPEC close alliances planned to cut oil supply, stokes inflation fears, 237 00:12:45,160 --> 00:12:47,400 Speaker 1: and as traders await labor market data e gage to 238 00:12:47,440 --> 00:12:50,200 Speaker 1: the risk over session. We checked the markets every fifteen 239 00:12:50,200 --> 00:12:52,559 Speaker 1: minutes throughout the trading day on Bloomberg get us in 240 00:12:52,600 --> 00:12:55,199 Speaker 1: p futures are down twenty six points, dal Future is 241 00:12:55,240 --> 00:12:57,600 Speaker 1: down one seventy two and as deck Future is down 242 00:12:57,640 --> 00:13:00,160 Speaker 1: eighties seven. The decks in Germany is down for were 243 00:13:00,160 --> 00:13:02,800 Speaker 1: tense of Upper said the tenure Treasury down three thirty 244 00:13:02,880 --> 00:13:05,840 Speaker 1: seconds three point seven six percent in a yield on 245 00:13:05,840 --> 00:13:08,679 Speaker 1: the two year four point one six percent. Nine X 246 00:13:08,720 --> 00:13:10,880 Speaker 1: Screwed oil is down to tens per cent or twelve 247 00:13:10,960 --> 00:13:13,240 Speaker 1: cents at eighty seven dollars sixty four cents of barrel 248 00:13:13,480 --> 00:13:15,400 Speaker 1: comes gold up a tenth of upper cent or two 249 00:13:15,440 --> 00:13:18,520 Speaker 1: dollars thirty cents. A seventeen twenty three ten announced the 250 00:13:18,600 --> 00:13:21,839 Speaker 1: euro point two against the dollar, British found one point 251 00:13:21,840 --> 00:13:25,000 Speaker 1: one to five five and the yen at one four 252 00:13:25,040 --> 00:13:28,040 Speaker 1: point seven to In bitcoin this morning, it's up seven 253 00:13:28,040 --> 00:13:31,240 Speaker 1: tenths percent to twenty thousand, one twenty five dollars as 254 00:13:31,240 --> 00:13:33,800 Speaker 1: a Bloomberg Business Flash. Now here's Michael Barr with more 255 00:13:33,840 --> 00:13:36,439 Speaker 1: on what's going on around the world. Michael Karen, thank 256 00:13:36,480 --> 00:13:39,559 Speaker 1: you very much. More than thirty people, primarily children, were 257 00:13:39,640 --> 00:13:42,360 Speaker 1: killed today when a gunman opened fire in a child 258 00:13:42,400 --> 00:13:46,160 Speaker 1: care center in northeastern Thailand. Authority said the attacker later 259 00:13:46,160 --> 00:13:49,719 Speaker 1: took his own life. President Biden visited Florida yesterday to 260 00:13:49,800 --> 00:13:53,000 Speaker 1: offer support for the victims of Hurricane Ian. The President 261 00:13:53,080 --> 00:13:55,840 Speaker 1: told victims that we are with you every step of 262 00:13:55,920 --> 00:13:58,600 Speaker 1: the way. In baseball, on the last day of the 263 00:13:58,600 --> 00:14:01,600 Speaker 1: regular season, the Yankee Is lost the Mats one over 264 00:14:01,600 --> 00:14:04,960 Speaker 1: the Nationals nine to the Red Sox lost the Orioles 265 00:14:04,960 --> 00:14:07,200 Speaker 1: split a double head over the Blue Jays, the Giants, 266 00:14:07,200 --> 00:14:10,120 Speaker 1: and as one Global News twenty four hours a day 267 00:14:10,120 --> 00:14:12,920 Speaker 1: on air and on Bloomberg Quick Take, powered by more 268 00:14:13,240 --> 00:14:15,679 Speaker 1: than twenty seven hundred journalist and analyst and more than 269 00:14:15,679 --> 00:14:19,239 Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg. 270 00:14:19,320 --> 00:14:22,120 Speaker 1: Nathan Okay, Michael. Thanks at six nineteen on Wall Street 271 00:14:22,200 --> 00:14:26,120 Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, 272 00:14:26,160 --> 00:14:28,760 Speaker 1: and we're joined now by liz Anne Saunders, chief investment 273 00:14:28,840 --> 00:14:32,120 Speaker 1: strategist at Charles Schwab. As you watch futures take another 274 00:14:32,200 --> 00:14:35,720 Speaker 1: leg lower this morning. We started this quarter off so well, 275 00:14:35,920 --> 00:14:39,280 Speaker 1: liz Anne, but it looks perhaps like investor sentiment is 276 00:14:39,320 --> 00:14:41,360 Speaker 1: back to where it started. Or is that taking it 277 00:14:41,400 --> 00:14:46,560 Speaker 1: too far? Um? You know you're actually talking about sentiment indicators. 278 00:14:46,560 --> 00:14:48,480 Speaker 1: It don't quite swing as wildly on a day to 279 00:14:48,560 --> 00:14:51,320 Speaker 1: day basis as you see the market. I think it's 280 00:14:51,360 --> 00:14:54,720 Speaker 1: just the the nature of the beast. And when you 281 00:14:54,800 --> 00:14:58,400 Speaker 1: have a significant two day move like that the last 282 00:14:59,080 --> 00:15:02,280 Speaker 1: four times we had back to back two and a 283 00:15:02,320 --> 00:15:06,680 Speaker 1: half percent plus updates, we're all in the fall um 284 00:15:06,720 --> 00:15:09,960 Speaker 1: into the winter of two thousand and eight, and so 285 00:15:10,000 --> 00:15:12,560 Speaker 1: to see a bit of a reprieve in that case, 286 00:15:12,640 --> 00:15:16,880 Speaker 1: you had unfortunately still double digit declines left ahead of 287 00:15:16,920 --> 00:15:19,040 Speaker 1: you before you hit the March O nine bottom. And 288 00:15:19,040 --> 00:15:22,640 Speaker 1: I'm not suggesting that that we're repeating that, but um 289 00:15:22,920 --> 00:15:25,760 Speaker 1: to to have some profit taking kicking after such a 290 00:15:25,760 --> 00:15:28,880 Speaker 1: strong two day move is not surprising, especially in this 291 00:15:28,920 --> 00:15:31,560 Speaker 1: type of market. Now, I'll talk a little bit more 292 00:15:31,600 --> 00:15:34,760 Speaker 1: about this type of market. What's predominating. I mean, we've 293 00:15:34,760 --> 00:15:38,600 Speaker 1: heard of, particularly from the Federal Reserve officials, continuing to 294 00:15:38,640 --> 00:15:41,520 Speaker 1: bang the drum about higher for longer interest rates. Is 295 00:15:42,080 --> 00:15:45,720 Speaker 1: that the main focus for you? It is? But you also, 296 00:15:46,080 --> 00:15:50,920 Speaker 1: um see the equity market moving somewhat in inverse lockstep 297 00:15:51,000 --> 00:15:55,320 Speaker 1: with what bondyields are are doing. So even going back 298 00:15:55,360 --> 00:15:58,200 Speaker 1: to the mid June low and the rally between mid 299 00:15:58,280 --> 00:16:01,360 Speaker 1: June and mid August had a lot to do with 300 00:16:01,400 --> 00:16:03,760 Speaker 1: what was happening in in bond yields, and I think 301 00:16:03,760 --> 00:16:07,200 Speaker 1: more recently too, you had to reprieve both in bond 302 00:16:07,280 --> 00:16:10,360 Speaker 1: yields and the dollar that I think was the called 303 00:16:10,360 --> 00:16:13,480 Speaker 1: the fundamental set up for the two day rally that 304 00:16:13,600 --> 00:16:15,960 Speaker 1: we have. So yes, I think it's it's it's rate 305 00:16:16,080 --> 00:16:18,560 Speaker 1: and rates and Fed policy that are that are in 306 00:16:18,560 --> 00:16:21,080 Speaker 1: the driver's seat in terms of market behavior. Do you 307 00:16:21,120 --> 00:16:24,960 Speaker 1: see any further moves UH in bond yields given the 308 00:16:25,000 --> 00:16:29,360 Speaker 1: message we're hearing from the FED, were of the view 309 00:16:29,440 --> 00:16:32,200 Speaker 1: that at least the recent move on an intra day 310 00:16:32,240 --> 00:16:35,280 Speaker 1: basis up to a little north of four percent on 311 00:16:35,400 --> 00:16:39,520 Speaker 1: the ten year, that there's probably not a lot more 312 00:16:39,680 --> 00:16:43,600 Speaker 1: upside beyond that, and we we we are not not 313 00:16:43,680 --> 00:16:46,160 Speaker 1: definitively of the view that the Fed may be able 314 00:16:46,200 --> 00:16:53,040 Speaker 1: to at least lower the pace of rate hikes UM 315 00:16:53,200 --> 00:16:57,200 Speaker 1: sooner maybe than um. Some of the pessimists this this 316 00:16:57,280 --> 00:16:59,640 Speaker 1: is distinct from a pivot. I think the notion of 317 00:16:59,680 --> 00:17:01,880 Speaker 1: a p it to the extent that you define that 318 00:17:02,000 --> 00:17:05,119 Speaker 1: as a shift from rate hikes to rate cuts. I 319 00:17:05,119 --> 00:17:08,560 Speaker 1: think the set is appropriately tried to push way back 320 00:17:08,720 --> 00:17:11,000 Speaker 1: on that notion, and that certainly sat behind the mid 321 00:17:11,119 --> 00:17:14,760 Speaker 1: June to mid August rally, but they may not have 322 00:17:14,960 --> 00:17:18,040 Speaker 1: to go to the mid four percent range, which is 323 00:17:18,080 --> 00:17:23,000 Speaker 1: what the latest projections and dot spots showed. Um. You know, 324 00:17:23,080 --> 00:17:25,720 Speaker 1: I think you're at about a sixty likelihood of a 325 00:17:25,800 --> 00:17:28,800 Speaker 1: seventy basis point hike in November, but I wouldn't surprise 326 00:17:28,840 --> 00:17:35,520 Speaker 1: if they started to telegraph maybe lower hikes, meaning fifty um, 327 00:17:35,560 --> 00:17:38,480 Speaker 1: even if we get seventy five in November. Interesting you 328 00:17:38,520 --> 00:17:40,840 Speaker 1: say that because we just heard from Raphael Boston from 329 00:17:40,840 --> 00:17:43,359 Speaker 1: the Atlanta Fed yesterday saying that he'd be okay with 330 00:17:43,400 --> 00:17:45,280 Speaker 1: four to four and a half percent. I mean, you 331 00:17:45,320 --> 00:17:47,120 Speaker 1: put the four and a half percent number out there, 332 00:17:48,359 --> 00:17:52,239 Speaker 1: So that's one FED speaker, and that's the stance I 333 00:17:52,280 --> 00:17:54,679 Speaker 1: think that many of them have right now. We just 334 00:17:54,760 --> 00:17:59,640 Speaker 1: think with the leading indicators of inflation in many cases 335 00:17:59,760 --> 00:18:03,000 Speaker 1: have significantly rolled over. You saw it in both I 336 00:18:03,200 --> 00:18:08,200 Speaker 1: s M manufacturing and I s M services prices paid. Um. 337 00:18:08,240 --> 00:18:12,119 Speaker 1: This is leaving aside oil. Obviously, given the recent news 338 00:18:12,160 --> 00:18:16,119 Speaker 1: there that there may be a point at which the 339 00:18:16,200 --> 00:18:19,719 Speaker 1: FED can just lift its foot off the brake um. 340 00:18:20,400 --> 00:18:24,520 Speaker 1: I also think, though importantly, as they really have been emphasizing, 341 00:18:25,440 --> 00:18:28,600 Speaker 1: whenever they get to their destination, whether it's four in 342 00:18:28,640 --> 00:18:31,120 Speaker 1: a quarter or four and a half four and three quarters, 343 00:18:31,400 --> 00:18:33,560 Speaker 1: they're going to stay there for a while, that this 344 00:18:33,640 --> 00:18:37,880 Speaker 1: isn't going to be a one eight two rate cuts, 345 00:18:38,400 --> 00:18:43,280 Speaker 1: other than if the economic deterioration that they're actually trying 346 00:18:43,320 --> 00:18:46,960 Speaker 1: to engineer here a bit in order to bring inflation 347 00:18:47,040 --> 00:18:52,600 Speaker 1: down sustainably, or financial instability really kicking in. I think 348 00:18:52,640 --> 00:18:56,560 Speaker 1: the Fed gets to their destination and they stay a while. 349 00:18:56,760 --> 00:18:59,040 Speaker 1: Just about thirty seconds left here. Do you think tomorrow's 350 00:18:59,119 --> 00:19:02,760 Speaker 1: jobs report helps the Fed get to that destination? Depends 351 00:19:02,800 --> 00:19:05,480 Speaker 1: on what it is. I think some of the labor 352 00:19:05,520 --> 00:19:08,560 Speaker 1: market data, not least being the huge drop in job openings, 353 00:19:08,560 --> 00:19:12,800 Speaker 1: which is something they've specifically cited, is what they want 354 00:19:12,800 --> 00:19:15,640 Speaker 1: to see some contraction in, but they would ideally love 355 00:19:15,640 --> 00:19:19,520 Speaker 1: it to happen exclusive of a significant increase in the 356 00:19:19,600 --> 00:19:22,720 Speaker 1: unemployment rate or significant deterioration in pay rolls. I think 357 00:19:22,760 --> 00:19:26,760 Speaker 1: a hotter than expected number from a stock market perspective 358 00:19:26,880 --> 00:19:30,960 Speaker 1: is probably not a good thing. Thanks as always, Lizanne, 359 00:19:31,000 --> 00:19:34,480 Speaker 1: great getting your thoughts. Liz Ane Saunders, chief investment strategist 360 00:19:34,560 --> 00:19:37,240 Speaker 1: at Charles Schwab with us this morning as we watch 361 00:19:37,320 --> 00:19:40,680 Speaker 1: futures move lower. Now, SMP futures are down twenty six 362 00:19:40,720 --> 00:19:43,680 Speaker 1: points down, futures down a hundred seventy five and NASDAC 363 00:19:43,720 --> 00:19:47,040 Speaker 1: futures are lower by eighty six points ten. Your treasuries 364 00:19:47,080 --> 00:19:49,800 Speaker 1: down four thirty seconds for yield of three point seven 365 00:19:49,920 --> 00:19:53,160 Speaker 1: seven percent. NIMEX crude moving a bit lower now, down 366 00:19:53,200 --> 00:19:55,720 Speaker 1: two tenths per cent, or fourteen cents at eighty seven 367 00:19:55,720 --> 00:19:59,880 Speaker 1: dollars sixty two cents of barrel. Stay with us. You're 368 00:20:00,040 --> 00:20:08,720 Speaker 1: listening to Bloomberg Daybreak Bloomberg eleven three oh weather, sunshine, 369 00:20:08,760 --> 00:20:12,119 Speaker 1: low seventies today and tomorrow. We're gonna keep it sunny 370 00:20:12,119 --> 00:20:14,480 Speaker 1: for the weekend, but it's gonna be cooler, only around 371 00:20:14,480 --> 00:20:18,000 Speaker 1: sixty for Saturday, low sixties for Sunday. Right now in 372 00:20:18,040 --> 00:20:25,760 Speaker 1: Central Park, broadcasting ve from the Bloomberg Interactive Broker Studio 373 00:20:25,840 --> 00:20:29,040 Speaker 1: in New York. Bloomberg e Living Freedom to Washington, d C. 374 00:20:29,240 --> 00:20:32,680 Speaker 1: Bloomberg ninety nine one to Boston, Bloomberg on OH six 375 00:20:32,760 --> 00:20:35,960 Speaker 1: one to San Francisco, Bloomberg nine sixteen to the country. 376 00:20:36,040 --> 00:20:38,679 Speaker 1: Sirius XM to the one nine team and around the 377 00:20:38,680 --> 00:20:42,760 Speaker 1: bloom the Bloomberg Business and Bloomberg Radio dot com. This 378 00:20:43,080 --> 00:20:51,680 Speaker 1: is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. 379 00:20:51,680 --> 00:20:54,560 Speaker 1: I'm Nathan Hagar and I'm Karen Moscow, and we're just 380 00:20:54,640 --> 00:20:57,200 Speaker 1: about three hours away from the open of US trading. 381 00:20:57,240 --> 00:20:58,960 Speaker 1: Time to the five things that you need to notice 382 00:20:58,960 --> 00:21:03,080 Speaker 1: start your day. Brought to you by Interactive Brokers. Interactive 383 00:21:03,119 --> 00:21:05,600 Speaker 1: Brokers clients are an interest of up to two point 384 00:21:05,640 --> 00:21:08,440 Speaker 1: five eight percent on the idle cash and their brokerage accounts. 385 00:21:08,680 --> 00:21:11,119 Speaker 1: That's just one of the many reasons clients use interactive 386 00:21:11,160 --> 00:21:14,720 Speaker 1: brokers to trade stocks, options, futures, currencies, bonds, funds, crypto 387 00:21:14,800 --> 00:21:18,080 Speaker 1: and more. Visit ibkr dot com slash interest rates to 388 00:21:18,240 --> 00:21:21,800 Speaker 1: learn more. At first, US futures are lower this morning, 389 00:21:21,800 --> 00:21:24,840 Speaker 1: and that's after stocks and after two day winning streaky yesterday. 390 00:21:25,080 --> 00:21:28,600 Speaker 1: Mainstay Capital Management founder David could Law says, right now 391 00:21:28,680 --> 00:21:32,680 Speaker 1: it's time to be defensive. The classic sixty portfolio this 392 00:21:32,840 --> 00:21:37,080 Speaker 1: down more than this year. Liquid alternatives that offer an 393 00:21:37,080 --> 00:21:40,679 Speaker 1: opportunity for a positive return because of the strategies of 394 00:21:40,760 --> 00:21:45,040 Speaker 1: shorting stocks actually generate positive returns. David could law with 395 00:21:45,080 --> 00:21:48,280 Speaker 1: Mainstay Capital says it's wishful thinking to believe that rate 396 00:21:48,359 --> 00:21:52,080 Speaker 1: heights will bring down inflation anytime soon. Stealth Karen FED 397 00:21:52,160 --> 00:21:55,359 Speaker 1: officials keep banging the drum for tighter policy, insisting they 398 00:21:55,400 --> 00:21:58,359 Speaker 1: do not plan to cut rates next year. San Francisco 399 00:21:58,480 --> 00:22:01,879 Speaker 1: FED President Mary Daly's oak with Bloomberg yesterday, it's also 400 00:22:02,040 --> 00:22:05,280 Speaker 1: very damaging to the economy to have this level of inflation, 401 00:22:05,359 --> 00:22:08,040 Speaker 1: so we're committed to bringing it down in staying the 402 00:22:08,040 --> 00:22:11,119 Speaker 1: course until we're well and truly done. Mary Daly's comments 403 00:22:11,160 --> 00:22:14,680 Speaker 1: about inflation are being echoed by Atlanta FED President Raphael Bostick. 404 00:22:14,680 --> 00:22:17,600 Speaker 1: He says rates still need to go higher. Meantime, Nathan, 405 00:22:17,600 --> 00:22:19,960 Speaker 1: the price of oil is holding steady after Opak a 406 00:22:20,000 --> 00:22:23,159 Speaker 1: great to slash daily output by two million barrel Saudi 407 00:22:23,280 --> 00:22:27,360 Speaker 1: Energy Minister Prince Abdulazie has been Salmon, says he sat 408 00:22:27,400 --> 00:22:29,359 Speaker 1: down with us in Vienna and says the move does 409 00:22:29,440 --> 00:22:32,200 Speaker 1: not necessarily mean the market should price in more cunts 410 00:22:32,240 --> 00:22:34,879 Speaker 1: in the future. We wanted to give the market a 411 00:22:35,000 --> 00:22:39,119 Speaker 1: creed direction, a creed input. That's why we extended the 412 00:22:39,119 --> 00:22:43,560 Speaker 1: agreement to end. But we still have the same tools 413 00:22:43,600 --> 00:22:47,920 Speaker 1: in our guide this to the market. Is Saudi Energy 414 00:22:47,960 --> 00:22:51,000 Speaker 1: Minister Prince Abdulazie has been Salmon says the US led 415 00:22:51,040 --> 00:22:53,840 Speaker 1: initiative to slap a price camp on Russian oil is 416 00:22:53,840 --> 00:22:56,879 Speaker 1: adding uncertainty to the market and checking prices now not 417 00:22:57,080 --> 00:22:59,520 Speaker 1: like screwed oil down about a tenth of a percent 418 00:22:59,640 --> 00:23:01,600 Speaker 1: now it's at eighty seven dollars sixty three cents of 419 00:23:01,640 --> 00:23:04,040 Speaker 1: barrel Brent also done about the same and ninety three 420 00:23:04,040 --> 00:23:07,480 Speaker 1: dollars twenty two cents. The Biden administration's calling OPEX move 421 00:23:07,560 --> 00:23:11,960 Speaker 1: unnecessary and shortsighted, saying it aligns OPEC with Russia. In response, 422 00:23:12,000 --> 00:23:14,640 Speaker 1: Economic advisor Brian d says the US will release ten 423 00:23:14,680 --> 00:23:17,760 Speaker 1: million barrels from the Strategic Petroleum Reserve this month. And 424 00:23:17,800 --> 00:23:20,200 Speaker 1: in corporate news this morning, Nathan, it turns out billionaire 425 00:23:20,200 --> 00:23:22,840 Speaker 1: Elon Musk was reportedly pushing to buy Twitter for a 426 00:23:22,880 --> 00:23:25,479 Speaker 1: lower price than previously a great upon he'll now go 427 00:23:25,560 --> 00:23:28,080 Speaker 1: through with a deal on its original terms. That's the 428 00:23:28,119 --> 00:23:30,240 Speaker 1: five things that you need to know to start your day, 429 00:23:30,280 --> 00:23:34,280 Speaker 1: brought to you by Interactive Brokers. And this is Bloomberg. 430 00:23:38,040 --> 00:23:40,680 Speaker 1: Thanks Karen. Six three on Wall Street, fifty four degrees 431 00:23:40,720 --> 00:23:43,760 Speaker 1: in Central Park, still got that mess on the northbound 432 00:23:43,840 --> 00:23:46,920 Speaker 1: New Jersey Turnpike on ramp from Route eighteen in East Brunswick. 433 00:23:47,119 --> 00:23:49,240 Speaker 1: We'll tell you more in Traffic First. Michael Barr has 434 00:23:49,240 --> 00:23:50,960 Speaker 1: more on what's going on in New York and around 435 00:23:50,960 --> 00:23:53,680 Speaker 1: the world. Good morning, Michael, Good morning, Nathan late Words. 436 00:23:53,680 --> 00:23:57,439 Speaker 1: South Korea says twelve North Korean war planes have flown 437 00:23:57,480 --> 00:24:00,760 Speaker 1: near their border, prompting it to launch warplane in response. 438 00:24:01,400 --> 00:24:04,400 Speaker 1: This after North Korea launched two ballistic missiles into its 439 00:24:04,440 --> 00:24:08,119 Speaker 1: eastern waters today. It comes after the U. S redeployed 440 00:24:08,119 --> 00:24:12,040 Speaker 1: in aircraft carrier in response to the North launched tuesday 441 00:24:12,359 --> 00:24:16,160 Speaker 1: of a nuclear capable missile over Japan. Secretary of State 442 00:24:16,200 --> 00:24:19,679 Speaker 1: Anthony Lincoln, you're taking appropriate defense and to turn steps 443 00:24:19,680 --> 00:24:22,240 Speaker 1: with allies and partners. We called for UN Security Council 444 00:24:22,280 --> 00:24:25,960 Speaker 1: meeting UH and we're consulting with our partners on the 445 00:24:26,000 --> 00:24:28,240 Speaker 1: next steps UM. But I also want to make very 446 00:24:28,240 --> 00:24:31,680 Speaker 1: clear that our commitment to the defense of our allies 447 00:24:31,680 --> 00:24:36,520 Speaker 1: and partners free in Japan is is ironclad. Secretary b 448 00:24:36,560 --> 00:24:40,320 Speaker 1: Lincoln spoke in chilean IBM will announce plans to invest 449 00:24:40,359 --> 00:24:43,480 Speaker 1: twenty billion dollars over the next decade during a visit 450 00:24:43,520 --> 00:24:46,720 Speaker 1: by President Joe Biden to the company's campus in Poughkeepsie, 451 00:24:46,800 --> 00:24:49,760 Speaker 1: New York. President Biden will also be in New Jersey 452 00:24:49,800 --> 00:24:54,240 Speaker 1: today for a Democratic fundraiser. Yesterday, President Biden was in Florida. 453 00:24:54,680 --> 00:24:57,199 Speaker 1: President Biden laid out some of the benefits available to 454 00:24:57,280 --> 00:25:00,520 Speaker 1: storm victims who lost property during hurricane And if you 455 00:25:00,560 --> 00:25:03,800 Speaker 1: don't have in shorts, or if you're under insured and 456 00:25:03,840 --> 00:25:06,320 Speaker 1: you found a place to rent where your car has 457 00:25:06,320 --> 00:25:09,439 Speaker 1: been destroyed, you're entitled up maybe entitle up to thirty 458 00:25:09,440 --> 00:25:13,399 Speaker 1: seven thousand, nine hundred dollars in federal funds. Biden received 459 00:25:13,400 --> 00:25:16,159 Speaker 1: a warm welcome from Florida Governor Ron Descantis, who has 460 00:25:16,200 --> 00:25:19,200 Speaker 1: clashed in the past with a Biden administration. New York 461 00:25:19,200 --> 00:25:22,720 Speaker 1: City Council members are proposing housing asylum seekers in hotels 462 00:25:22,760 --> 00:25:26,600 Speaker 1: and churches. The ideas from last night's council meet income 463 00:25:26,920 --> 00:25:29,840 Speaker 1: after Mayor Eric Adams now wants to house migrants in 464 00:25:29,880 --> 00:25:33,720 Speaker 1: a tent city at Randall's Island after scrapping the Orchard 465 00:25:33,760 --> 00:25:37,800 Speaker 1: Beach location. However, critics say the new Randall's Island location 466 00:25:37,840 --> 00:25:41,240 Speaker 1: will still have the same problems, including access from migrants 467 00:25:41,280 --> 00:25:44,680 Speaker 1: to get jobs, healthcare, and schools. More than thirty people, 468 00:25:44,760 --> 00:25:48,160 Speaker 1: primarily children, were killed today when a gunman opened fire 469 00:25:48,280 --> 00:25:51,440 Speaker 1: in a child care center in northeastern Thailand. Au already 470 00:25:51,480 --> 00:25:53,920 Speaker 1: say that the the gunman took his own life. A Connecticut 471 00:25:54,000 --> 00:25:56,560 Speaker 1: jury is expected to hear closing arguments today in a 472 00:25:56,640 --> 00:25:59,960 Speaker 1: trial to determine how much Info Wars hosts Alex Joe 473 00:26:00,000 --> 00:26:02,879 Speaker 1: Own should pay for persuading his audience that the twenty 474 00:26:02,960 --> 00:26:05,760 Speaker 1: twelve shooting at Sandy Hook Elementary School was a hoax 475 00:26:06,000 --> 00:26:09,760 Speaker 1: to impose more gun control laws. Global News twenty four 476 00:26:09,800 --> 00:26:13,040 Speaker 1: hours a day on air and on Bloomberg Quicktake, powered 477 00:26:13,040 --> 00:26:15,800 Speaker 1: by more than twenty seven hundred journalists and analysts more 478 00:26:15,800 --> 00:26:20,119 Speaker 1: than a hundred twenty countries. Michael Laren, this is Bloomberg. Nathan, okay, Michael, 479 00:26:20,160 --> 00:26:27,320 Speaker 1: thank you. Almost six thirty six on Wall Street. Time 480 00:26:27,359 --> 00:26:30,000 Speaker 1: for the Bloomberg Sports Update with Johnstowns shown all right to. 481 00:26:30,080 --> 00:26:32,720 Speaker 1: The baseball regular season is over. The new playoff format 482 00:26:32,880 --> 00:26:35,680 Speaker 1: has twelve teams, the most ever. It includes the Phillies, 483 00:26:35,720 --> 00:26:37,399 Speaker 1: who had not been to the postseason for the two 484 00:26:37,480 --> 00:26:39,800 Speaker 1: thousand and eleven and the Mariners who hadn't gone to 485 00:26:39,920 --> 00:26:42,320 Speaker 1: two thousand and one. It also includes the Yankees and 486 00:26:42,400 --> 00:26:45,440 Speaker 1: meth Yanks one games. They want just forty two and 487 00:26:45,560 --> 00:26:47,840 Speaker 1: thirty two. After the Allstar Great they lost the finale 488 00:26:47,880 --> 00:26:50,600 Speaker 1: at Texas for to two. They'll now await the winner 489 00:26:50,720 --> 00:26:53,800 Speaker 1: of the wild Cards series between Cleveland and Sampa Bay. 490 00:26:53,880 --> 00:26:55,840 Speaker 1: The Mets won a hundred and one games, but because 491 00:26:55,880 --> 00:26:58,040 Speaker 1: they got swept in Atlanta last weekend, they have to 492 00:26:58,119 --> 00:27:01,240 Speaker 1: play a wild card series against San Diego. The open 493 00:27:01,359 --> 00:27:03,480 Speaker 1: to the best of three is tomorrow night at City Field, 494 00:27:03,520 --> 00:27:07,119 Speaker 1: with Matchers are opposing the Padres. Hugh Darvis Mets finished 495 00:27:07,200 --> 00:27:09,640 Speaker 1: up for the nine to one over Washington. James McCann 496 00:27:09,760 --> 00:27:11,560 Speaker 1: hit u three run homer, Francisco den Door a three 497 00:27:11,600 --> 00:27:14,440 Speaker 1: run double. Jeff McNeil did not play, finished with a 498 00:27:14,520 --> 00:27:17,360 Speaker 1: three twenty six average that one McNeil the nash League 499 00:27:17,400 --> 00:27:20,000 Speaker 1: batting title. He hit just two forty nine a year ago. 500 00:27:20,080 --> 00:27:24,160 Speaker 1: The Royals fired manager Mike Mffini. The Angels announced Phil Nevin, 501 00:27:24,160 --> 00:27:26,560 Speaker 1: who took over when Joe Madden was fired, will return 502 00:27:26,680 --> 00:27:30,240 Speaker 1: next season. Big five NFL begins with Coats and Broncos 503 00:27:30,320 --> 00:27:33,920 Speaker 1: tonight in Denver. The Giants lead today for London to 504 00:27:34,080 --> 00:27:39,000 Speaker 1: play the Packers Sunday at Tottenham Stadium still in Jersey. Yesterday, 505 00:27:39,080 --> 00:27:42,159 Speaker 1: giant stob Daniel Jones gave an update. I was Inna 506 00:27:42,200 --> 00:27:44,680 Speaker 1: Juan Sunday's a little bit, a little bit away. So 507 00:27:44,760 --> 00:27:46,920 Speaker 1: I think I'll continue to progress throughout the week and 508 00:27:47,160 --> 00:27:50,359 Speaker 1: see how i feel. But uh confidence my ability to 509 00:27:51,119 --> 00:27:53,199 Speaker 1: uh throw from the pocket, throw outside of the pocket, 510 00:27:53,280 --> 00:27:56,120 Speaker 1: and and uh take place from boat of Jones can't play. 511 00:27:56,200 --> 00:27:59,479 Speaker 1: It's likely third stringer Davis Webbill starts with Tyrod Taylor's 512 00:27:59,520 --> 00:28:01,440 Speaker 1: and can cut from protocol. Web has never thrown a 513 00:28:01,520 --> 00:28:04,639 Speaker 1: pass in the NFL. Readulus using game Ron scratch. I 514 00:28:04,680 --> 00:28:09,320 Speaker 1: went Bloomberg Court thanks set on Wall Street time down 515 00:28:09,359 --> 00:28:10,720 Speaker 1: to take a look at stock some of the names 516 00:28:10,800 --> 00:28:12,960 Speaker 1: moving in the pre market with Bloomberg Radio and TV 517 00:28:13,080 --> 00:28:17,200 Speaker 1: Markets correspondent created goof tub once again watching Twitter as 518 00:28:17,320 --> 00:28:20,200 Speaker 1: the saga continues with Elon Musk creat Yeah, we gotta 519 00:28:20,280 --> 00:28:22,879 Speaker 1: come back to a fan favorite here t W t 520 00:28:23,240 --> 00:28:25,920 Speaker 1: R is your ticker, Nathan down one point three percent 521 00:28:26,200 --> 00:28:28,119 Speaker 1: and to your point, the saga does continue. You know, 522 00:28:28,240 --> 00:28:30,960 Speaker 1: we were talking about this massive litigation battle between Elon 523 00:28:31,080 --> 00:28:33,479 Speaker 1: Musk and between the folks over at Twitter. They were 524 00:28:33,560 --> 00:28:36,359 Speaker 1: trial was supposed to start in October seventeenth. It was 525 00:28:36,400 --> 00:28:38,960 Speaker 1: something that UM a lot of the street had said 526 00:28:38,960 --> 00:28:42,520 Speaker 1: that Twitter would undeniably have the advantage, and just given 527 00:28:42,600 --> 00:28:45,680 Speaker 1: that the trial was being done in the Delaware Chancery court, 528 00:28:46,120 --> 00:28:48,200 Speaker 1: that being that which tends to favor UM kind of 529 00:28:48,920 --> 00:28:52,120 Speaker 1: more of the deals that already being made, UM, it 530 00:28:52,280 --> 00:28:56,400 Speaker 1: tends to favor the uh whoever is being acquisitioned UM 531 00:28:56,480 --> 00:28:59,240 Speaker 1: so in this case Twitter. So Twitter shares UM actually 532 00:28:59,320 --> 00:29:02,360 Speaker 1: down now because in the last couple of days we've 533 00:29:02,440 --> 00:29:06,240 Speaker 1: heard stories that Elon Musk is actually looking to bid 534 00:29:06,320 --> 00:29:09,280 Speaker 1: for Twitter at the offer price of fifty four dollars 535 00:29:09,360 --> 00:29:11,440 Speaker 1: and twenty cents. The idea here being that their legal 536 00:29:11,520 --> 00:29:13,840 Speaker 1: team dudes not think that they have much of a 537 00:29:13,960 --> 00:29:16,480 Speaker 1: shot when it comes to UH this this trial that's 538 00:29:16,480 --> 00:29:18,520 Speaker 1: going to unfold, So they're just going to kind of 539 00:29:18,560 --> 00:29:21,640 Speaker 1: settle in what the original agreement was. But since then, 540 00:29:21,680 --> 00:29:24,200 Speaker 1: you've had some major players who have actually tried to 541 00:29:24,280 --> 00:29:26,760 Speaker 1: help Elon Must get some of that financing thirteen billion 542 00:29:26,800 --> 00:29:29,920 Speaker 1: dollars of that financing start to back out. Think Apollo, 543 00:29:30,040 --> 00:29:32,560 Speaker 1: for example, which was really the leader and helping Elon 544 00:29:32,640 --> 00:29:35,040 Speaker 1: Must get that financing. Now the question is if he 545 00:29:35,280 --> 00:29:37,600 Speaker 1: is to spend that money or to give the offer 546 00:29:37,680 --> 00:29:40,000 Speaker 1: price fifty four dollars twenty cents and think of forty 547 00:29:40,080 --> 00:29:42,400 Speaker 1: three billion dollar deal, where how is he going to 548 00:29:42,480 --> 00:29:44,959 Speaker 1: pay for it? And it's those concerns that are now 549 00:29:45,080 --> 00:29:47,640 Speaker 1: waiting or weighing, I should say. On on Twitter shares 550 00:29:47,680 --> 00:29:50,520 Speaker 1: this morning, t w t R down one point three percent. 551 00:29:50,640 --> 00:29:53,640 Speaker 1: How's that for Saga, Nathan? Well done? Of course we've 552 00:29:53,680 --> 00:29:57,160 Speaker 1: been keeping so much attention on Twitter, but it looks 553 00:29:57,240 --> 00:30:00,840 Speaker 1: like analysts are looking at social media or broadly, it's 554 00:30:00,920 --> 00:30:02,720 Speaker 1: not the only company that they're looking at. It's not 555 00:30:02,840 --> 00:30:04,280 Speaker 1: the only company that they're looking at. And this is 556 00:30:04,320 --> 00:30:06,600 Speaker 1: a really important mover here because the entire market, i 557 00:30:06,600 --> 00:30:08,560 Speaker 1: should say, is down to the tune about seven tenths 558 00:30:08,560 --> 00:30:11,080 Speaker 1: of one percent. Pinterest, on the other hand, p I 559 00:30:11,320 --> 00:30:14,840 Speaker 1: n AS is up about four percent, jumping after Goldman 560 00:30:14,880 --> 00:30:17,760 Speaker 1: sacks Up basically gave them their standpard approval. They upgraded 561 00:30:17,840 --> 00:30:20,800 Speaker 1: the social networking site to a buy from a neutral, 562 00:30:21,000 --> 00:30:23,800 Speaker 1: saying that they're seeing those improving user growth patterns, better 563 00:30:23,920 --> 00:30:27,880 Speaker 1: engagement trends, even as the backdrop for digital advertising remains 564 00:30:28,000 --> 00:30:30,160 Speaker 1: kind of uncertain. And this is going to be crucial 565 00:30:30,200 --> 00:30:33,040 Speaker 1: because social media companies broadly have always kind of been 566 00:30:33,120 --> 00:30:35,120 Speaker 1: this um I want to say bell Weather if for 567 00:30:35,160 --> 00:30:38,360 Speaker 1: a lot of kind of economic indicators of this idea 568 00:30:38,440 --> 00:30:39,880 Speaker 1: here being that if you believe in the strength of 569 00:30:39,880 --> 00:30:42,680 Speaker 1: the economy, you're going to spend more on advertising. You're 570 00:30:42,680 --> 00:30:44,640 Speaker 1: going to spend more trying to get the consumer and 571 00:30:44,760 --> 00:30:47,360 Speaker 1: therefore feed into the bottom line of the likes of pinterest. 572 00:30:47,920 --> 00:30:50,800 Speaker 1: Good to get a macro perspective on some of these 573 00:30:50,840 --> 00:30:54,000 Speaker 1: individual movers. Thanks as always, Pretty Bloomberg Radio and TV 574 00:30:54,120 --> 00:30:58,600 Speaker 1: Markets correspondent Pretty Gupta. Watching the early morning trade, looking 575 00:30:58,640 --> 00:31:00,600 Speaker 1: at stocks as a whole, they are moving lower. SMP 576 00:31:00,720 --> 00:31:03,400 Speaker 1: futures down twenty five points, Stown futures down a hundred 577 00:31:03,440 --> 00:31:06,560 Speaker 1: eighty Nasdaq futures are lower by eighty one points, and 578 00:31:06,680 --> 00:31:09,160 Speaker 1: the tenure Treasury is down four thirty seconds. You'ld three 579 00:31:09,200 --> 00:31:12,080 Speaker 1: point seven six percent. It's like a crude once again, 580 00:31:12,160 --> 00:31:14,480 Speaker 1: little change down about a ten percent on the nimax 581 00:31:14,560 --> 00:31:18,560 Speaker 1: at eighty seven sixty five a barrel. This is Bloomberg 582 00:31:21,760 --> 00:31:24,120 Speaker 1: Bloomberg eleven three oh Weather sunshine for the rest of 583 00:31:24,160 --> 00:31:26,080 Speaker 1: this weekend into the weekend will be in the low 584 00:31:26,200 --> 00:31:30,640 Speaker 1: seventies today and tomorrow low sixties. Saturday and Sunday right now, 585 00:31:30,760 --> 00:31:37,720 Speaker 1: fifty four degrees at a clear sky in Central Park. Markets, 586 00:31:37,840 --> 00:31:40,920 Speaker 1: headlines and breaking news twenty four hours a day at 587 00:31:40,960 --> 00:31:44,320 Speaker 1: Bloomberg dot Com, bloo Bloomberg Business at and at Bloomberg 588 00:31:44,400 --> 00:31:53,840 Speaker 1: Quick Tape. He's a Bloomberg Business Flash and I'm Karin 589 00:31:53,880 --> 00:31:56,200 Speaker 1: Moscow future is lower this morning. We get to the 590 00:31:56,240 --> 00:31:58,600 Speaker 1: first Word breaking news desk for today's morning call, and 591 00:31:58,680 --> 00:32:01,880 Speaker 1: here's Bill Maloney. Bill, good morning, and good morning, Karen. 592 00:32:01,960 --> 00:32:03,800 Speaker 1: That's right. US futures are in the red right now. 593 00:32:03,920 --> 00:32:05,960 Speaker 1: Deaf futures down a hundred eighty two points, as if 594 00:32:06,000 --> 00:32:08,680 Speaker 1: he's dropped twenty seven and as that futures dropped by 595 00:32:08,760 --> 00:32:12,000 Speaker 1: eighties six the US ten years at three point seven 596 00:32:12,120 --> 00:32:14,920 Speaker 1: seven percent, Gold is little changed, Oil is in the red, 597 00:32:15,240 --> 00:32:18,440 Speaker 1: and bitcoin is training higher by one percent. Shanghai fil 598 00:32:18,480 --> 00:32:21,040 Speaker 1: half percent overnight, while your pay markets are also in 599 00:32:21,080 --> 00:32:23,240 Speaker 1: the red this morning and back in the US on 600 00:32:23,320 --> 00:32:27,760 Speaker 1: the economic Friday thirty initial jobs claims Regarding earnings, McCormick 601 00:32:27,800 --> 00:32:30,560 Speaker 1: EPs Speed S, Smiths and also look for Constellation brands 602 00:32:30,600 --> 00:32:33,320 Speaker 1: to report in the pre market. Wrapping things up, Auto 603 00:32:33,400 --> 00:32:36,239 Speaker 1: Nation was cut neutral at JP Morgan pinches raced by 604 00:32:36,240 --> 00:32:39,640 Speaker 1: a Goldman, Sachs and verizoner was raced to outperform. Over 605 00:32:39,680 --> 00:32:44,280 Speaker 1: at Oppenheimer Live from the first Breaking News deskm Bill Maloney, Karen, right, Bill, 606 00:32:44,320 --> 00:32:46,640 Speaker 1: thanks to your live breaking news over your Bloomberg type 607 00:32:46,640 --> 00:32:49,400 Speaker 1: squawk on your terminal squ a w u K. That's 608 00:32:49,400 --> 00:32:52,120 Speaker 1: a Bloomberg business flash. Now here's Michael Barr with more 609 00:32:52,200 --> 00:32:54,800 Speaker 1: on what's going on around the world. Michael, Karen, thank 610 00:32:54,840 --> 00:32:57,800 Speaker 1: you very much. South Korea says twelve North Korean war 611 00:32:57,960 --> 00:33:00,360 Speaker 1: planes have flown near their border, prom to get to 612 00:33:00,480 --> 00:33:04,560 Speaker 1: launch warplanes in response. It comes after North Korea launched 613 00:33:04,560 --> 00:33:08,440 Speaker 1: two ballistic missiles into its eastern waters. Pyong Yang criticized 614 00:33:08,440 --> 00:33:13,320 Speaker 1: the US redeployed an aircraft carrier after the North's earlier 615 00:33:13,400 --> 00:33:17,360 Speaker 1: launch of a nuclear capable missile over Japan. Authorities say 616 00:33:17,400 --> 00:33:20,280 Speaker 1: a former police officer killed at least twenty four children 617 00:33:20,400 --> 00:33:23,320 Speaker 1: and eleven adults in a gun and knife attack that 618 00:33:23,400 --> 00:33:27,440 Speaker 1: began at a child care center in Thailand. The assailant 619 00:33:27,520 --> 00:33:29,880 Speaker 1: fled the first scene, shooting from his car as he 620 00:33:30,040 --> 00:33:33,440 Speaker 1: drove home, before killing his wife and child and taking 621 00:33:33,520 --> 00:33:36,200 Speaker 1: his own life. In baseball, on the last day of 622 00:33:36,240 --> 00:33:38,680 Speaker 1: the regular season, the Yankees lost, Mets one over the 623 00:33:38,760 --> 00:33:42,000 Speaker 1: Nationals nine to the Red Sox lost, the Orioles split 624 00:33:42,080 --> 00:33:44,520 Speaker 1: a double head over the Blue Jays, the Giants and 625 00:33:44,600 --> 00:33:47,520 Speaker 1: as one Global News twenty four hours a day on 626 00:33:47,680 --> 00:33:51,320 Speaker 1: air and on Bloomberg Quittake, powered by more than twenty 627 00:33:51,400 --> 00:33:55,320 Speaker 1: seven hundred journalists and analysts on twenty countries. Michael bar 628 00:33:55,480 --> 00:33:59,880 Speaker 1: and this is Bloomberg. Karen alright, Nchaolbar thank you on walls. 629 00:34:00,200 --> 00:34:02,520 Speaker 1: Let's turn to news and science and technology now with 630 00:34:02,560 --> 00:34:05,120 Speaker 1: the Bloomberg and j I T Stam report. It brought 631 00:34:05,200 --> 00:34:08,560 Speaker 1: to uba New Jersey Institute of Technology, whose n j 632 00:34:08,880 --> 00:34:12,680 Speaker 1: II unit has joined with pharmaceutical giant Murk to establish 633 00:34:12,760 --> 00:34:17,040 Speaker 1: the Mark Digital Sciences Studio to support drug discovery and development. 634 00:34:17,360 --> 00:34:19,279 Speaker 1: More at n j I T DOT E d U 635 00:34:19,760 --> 00:34:23,040 Speaker 1: and here's just making news and science, technology, engineering and math. 636 00:34:23,440 --> 00:34:26,520 Speaker 1: American Express is ending a requirement that employees need to 637 00:34:26,520 --> 00:34:30,680 Speaker 1: be vaccinated again to enter offices. The decision, which takes 638 00:34:30,760 --> 00:34:33,960 Speaker 1: effect November first, applies to offices across the US, Canada, 639 00:34:34,080 --> 00:34:37,279 Speaker 1: Australia and New Zealand. Staffers also will no longer have 640 00:34:37,400 --> 00:34:41,040 Speaker 1: to be vaccinated to attend companies sponsored in person events, 641 00:34:41,400 --> 00:34:44,560 Speaker 1: and of course they're talking about vaccinations for COVID nineteen. 642 00:34:45,040 --> 00:34:48,160 Speaker 1: IBM will announce plans to invest twenty billion dollars over 643 00:34:48,200 --> 00:34:50,640 Speaker 1: the next decade during a visit by President Joe Biden 644 00:34:50,719 --> 00:34:53,719 Speaker 1: to the company's campus in Poughkeepsie, New York. The investments 645 00:34:53,760 --> 00:34:56,239 Speaker 1: will go toward research and development and the manufacturing of 646 00:34:56,280 --> 00:35:01,759 Speaker 1: Semiconductor's mainframe technology, artificial intelligence, and wantum computing. According to 647 00:35:01,840 --> 00:35:04,960 Speaker 1: a new studied route that stretched across three continents, this 648 00:35:05,080 --> 00:35:07,640 Speaker 1: summer drying out large parts of Europe, the United States, 649 00:35:07,680 --> 00:35:10,720 Speaker 1: and China was made twenty times more likely by climate 650 00:35:10,840 --> 00:35:14,240 Speaker 1: change researchers from World Weather Arbitration, a group of scientists 651 00:35:14,280 --> 00:35:16,400 Speaker 1: from around the world. You study a link between extreme 652 00:35:16,440 --> 00:35:19,040 Speaker 1: weather and climate change. See this type of drought would 653 00:35:19,080 --> 00:35:22,360 Speaker 1: only happen once every four years across the northern hemisphere 654 00:35:22,560 --> 00:35:25,440 Speaker 1: if not for human cause climate change. Now to expect 655 00:35:25,480 --> 00:35:28,120 Speaker 1: these conditions to repeat every twenty years, given how much 656 00:35:28,200 --> 00:35:31,000 Speaker 1: the climate has warmed. And that's the Bloomberg n j 657 00:35:31,200 --> 00:35:34,680 Speaker 1: I T STEM Report. Nathan, Thanks Karen. We are live 658 00:35:34,760 --> 00:35:37,479 Speaker 1: from the Bloomberg Interactive Brokers studios where it's just about 659 00:35:37,480 --> 00:35:40,120 Speaker 1: six fifty one on Wall Street time now to check 660 00:35:40,160 --> 00:35:42,200 Speaker 1: what's going on in VC. Some of the top stories 661 00:35:42,239 --> 00:35:45,360 Speaker 1: in our nation's capital include President Biden, Governor to Santis 662 00:35:45,400 --> 00:35:49,279 Speaker 1: playing nice and Ian ravaged Florida President facing a new 663 00:35:49,320 --> 00:35:53,280 Speaker 1: political headache with opex production cut, IBM unveiling that twenty 664 00:35:53,280 --> 00:35:56,200 Speaker 1: billion dollar investment in New York when the President makes 665 00:35:56,239 --> 00:35:59,399 Speaker 1: a stop there, and Janet Yellen calling for a World 666 00:35:59,480 --> 00:36:03,320 Speaker 1: Bank over hall speaking Bloomberg Government reporter Jack Fitzpatrick for 667 00:36:03,400 --> 00:36:05,960 Speaker 1: more on some of these stories, Jack, Good morning. So 668 00:36:06,239 --> 00:36:09,680 Speaker 1: the President and the governor of Florida managed to bury 669 00:36:09,760 --> 00:36:12,840 Speaker 1: the hatchet at least for a bit yesterday. Yeah, it 670 00:36:13,000 --> 00:36:16,359 Speaker 1: was clearly in both of their interests to be seen 671 00:36:16,440 --> 00:36:20,279 Speaker 1: as being as responsive as possible to the destruction from 672 00:36:20,360 --> 00:36:24,480 Speaker 1: Hurricane Ian. Uh. This went off without too much of 673 00:36:24,560 --> 00:36:27,200 Speaker 1: a hitch. You could read into the tea leaves of 674 00:36:27,719 --> 00:36:32,040 Speaker 1: them potentially preparing to face each other in four in 675 00:36:32,080 --> 00:36:35,680 Speaker 1: the presidential race. But there there even was some praise. 676 00:36:36,080 --> 00:36:38,239 Speaker 1: Biden said he thought that De Santis had done a 677 00:36:38,280 --> 00:36:43,000 Speaker 1: good job. They said they'd been working hand in glove together. Uh. 678 00:36:43,080 --> 00:36:48,120 Speaker 1: And the President extended the authorization for full federal assistance 679 00:36:48,480 --> 00:36:52,960 Speaker 1: on emergency needs. So this largely went off the way 680 00:36:53,040 --> 00:36:56,879 Speaker 1: you would expect the president to act in any circumstance 681 00:36:56,920 --> 00:37:00,080 Speaker 1: in which a really destructive hurricane hit any state. How 682 00:37:00,120 --> 00:37:03,040 Speaker 1: how long can we expect this sort of at least 683 00:37:03,320 --> 00:37:07,480 Speaker 1: show of cooperation to last. And I obviously they've got 684 00:37:07,560 --> 00:37:10,480 Speaker 1: a long recovery ahead in I en, but there's not 685 00:37:10,719 --> 00:37:14,239 Speaker 1: much time until we have a midterm election. Jack, Yeah, 686 00:37:14,640 --> 00:37:18,840 Speaker 1: you know, the recovery from this kind of disaster comes 687 00:37:18,880 --> 00:37:22,719 Speaker 1: in stages. There's things like getting water bottles to people 688 00:37:22,760 --> 00:37:26,440 Speaker 1: who don't have access to water, making sure electric lines 689 00:37:26,880 --> 00:37:32,360 Speaker 1: are are are repaired and electricity is available throughout the state, 690 00:37:32,640 --> 00:37:36,560 Speaker 1: those short term concerns. And then in the meantime, FEMA 691 00:37:36,680 --> 00:37:39,839 Speaker 1: assesses the damage and and they get into a bit 692 00:37:39,880 --> 00:37:44,880 Speaker 1: of a rebuilding conversation through grants. Uh. Democrats in Congress, 693 00:37:45,239 --> 00:37:47,640 Speaker 1: who still control the House and Senate, and obviously the 694 00:37:47,680 --> 00:37:51,520 Speaker 1: presidents of Democrat very much make a point of saying 695 00:37:51,920 --> 00:37:55,640 Speaker 1: we support federal aid for any scenario like this. Sometimes 696 00:37:55,680 --> 00:37:57,320 Speaker 1: they say that with a bit of a chip on 697 00:37:57,360 --> 00:38:01,880 Speaker 1: their shoulder, because some Republicans, including the opposed certain measures 698 00:38:02,320 --> 00:38:08,200 Speaker 1: after Hurricane Sandy. But there would very likely be clear 699 00:38:08,320 --> 00:38:11,880 Speaker 1: support in Congress for federal funds, not only for the 700 00:38:12,080 --> 00:38:16,360 Speaker 1: short term stuff, but the long term rebuilding grants. I 701 00:38:16,400 --> 00:38:19,080 Speaker 1: would not expect that to change at any point in 702 00:38:19,160 --> 00:38:21,480 Speaker 1: the future. Now, while the President was on his way 703 00:38:21,520 --> 00:38:24,080 Speaker 1: to Florida, we got that word from OPEC plus that 704 00:38:24,239 --> 00:38:27,080 Speaker 1: they're going to cut production by two million barrels a day. 705 00:38:27,239 --> 00:38:29,719 Speaker 1: Does this have the potential to be the kind of 706 00:38:29,800 --> 00:38:36,320 Speaker 1: October surprise that this president doesn't want. It's definitely bad news. 707 00:38:36,480 --> 00:38:39,880 Speaker 1: I don't know if this would constitute an October surprise 708 00:38:40,120 --> 00:38:44,680 Speaker 1: in the sense of one single event, Uh that that 709 00:38:44,880 --> 00:38:48,360 Speaker 1: really shocks people right before an election. Uh, this is 710 00:38:48,440 --> 00:38:52,120 Speaker 1: the kind of thing that you know, OPEC production being 711 00:38:52,239 --> 00:38:56,080 Speaker 1: limited can have somewhat of a delayed effect. Uh, we'll 712 00:38:56,120 --> 00:38:59,960 Speaker 1: see exactly how quickly this might lead to an increase 713 00:39:00,040 --> 00:39:03,759 Speaker 1: some and gas prices. Uh. It really adds a weight 714 00:39:03,880 --> 00:39:06,880 Speaker 1: to something that's already been an issue. Cost of living 715 00:39:07,000 --> 00:39:10,719 Speaker 1: is an issue broadly that that Republicans are hitting Democrats 716 00:39:10,760 --> 00:39:14,000 Speaker 1: on in these mid term elections. If gas prices go up, 717 00:39:14,600 --> 00:39:17,600 Speaker 1: it's not a new issue. It's something that's already been 718 00:39:17,680 --> 00:39:20,160 Speaker 1: debated that a lot of people have already felt. Uh. 719 00:39:20,360 --> 00:39:24,160 Speaker 1: So it is bad news. It's bad news for the 720 00:39:24,280 --> 00:39:27,200 Speaker 1: US economy. It's bad news for Democrats, certainly on the 721 00:39:27,280 --> 00:39:31,879 Speaker 1: campaign trail. It's hard to tell exactly how and when 722 00:39:32,120 --> 00:39:35,800 Speaker 1: this hits everyday people, but it's not something that Democrats 723 00:39:35,840 --> 00:39:37,960 Speaker 1: are happy about. Well, is there anything more that the 724 00:39:38,040 --> 00:39:40,160 Speaker 1: White House can do besides saying that they're going to 725 00:39:40,280 --> 00:39:43,000 Speaker 1: put out more from the strategic reserve and kind of 726 00:39:43,280 --> 00:39:47,600 Speaker 1: hammer gasoline companies about the gap between wholesale and retail prices. 727 00:39:47,719 --> 00:39:50,080 Speaker 1: Is there anything further the White House can do? I mean, 728 00:39:50,160 --> 00:39:53,759 Speaker 1: in this case, there have been hints at how they 729 00:39:54,120 --> 00:39:58,560 Speaker 1: might respond to OPEC countries. You know, you saw Senator 730 00:39:58,680 --> 00:40:02,680 Speaker 1: Chris Murphy, who's close with the White House, among other lawmakers, 731 00:40:03,680 --> 00:40:09,200 Speaker 1: raising the issue of US military aid to UH Saudi 732 00:40:09,239 --> 00:40:13,960 Speaker 1: Arabia as a point of leverage. That would be uh, 733 00:40:14,600 --> 00:40:17,320 Speaker 1: you know, a real point of tension if the US 734 00:40:17,440 --> 00:40:21,440 Speaker 1: tried to open up those negotiations and those talks and 735 00:40:21,800 --> 00:40:25,200 Speaker 1: and cast out as to the US is UH sort 736 00:40:25,239 --> 00:40:29,000 Speaker 1: of defense and security relationship with a country like Saudi Arabia? 737 00:40:29,880 --> 00:40:32,120 Speaker 1: But that that would be an option, that would be 738 00:40:32,719 --> 00:40:36,600 Speaker 1: a heavier option than just releasing more oil from the 739 00:40:36,680 --> 00:40:40,799 Speaker 1: Strategic Petroleum Reserve. That's not something that the the White 740 00:40:40,840 --> 00:40:43,600 Speaker 1: House has commented on though, Well, I guess the President 741 00:40:43,680 --> 00:40:46,400 Speaker 1: is going to try to take the reins on the 742 00:40:46,480 --> 00:40:50,440 Speaker 1: economic message with this trip to New York and IBM facility. 743 00:40:50,520 --> 00:40:54,320 Speaker 1: Tell us more about that. Yeah, In this case, IBM 744 00:40:54,520 --> 00:40:58,080 Speaker 1: is going to announce plans to invest twenty billion dollars 745 00:40:58,239 --> 00:41:01,640 Speaker 1: in the next decade. This is going to happen during 746 00:41:01,680 --> 00:41:06,120 Speaker 1: a visit today by the President to their campus in Poughkeepsie. Uh. 747 00:41:06,360 --> 00:41:10,160 Speaker 1: This ties in very clearly to the Chips Act that 748 00:41:10,520 --> 00:41:14,560 Speaker 1: was enacted earlier this summer. That is something that the 749 00:41:14,840 --> 00:41:17,680 Speaker 1: President is going to be touting on the campaign trail. 750 00:41:17,760 --> 00:41:21,439 Speaker 1: That's that's one of the big accomplishments that Democrats want 751 00:41:21,520 --> 00:41:24,360 Speaker 1: people to know about. That's a bit a bit abstract 752 00:41:24,480 --> 00:41:27,719 Speaker 1: your everyday people in terms of what semiconductors are in 753 00:41:27,760 --> 00:41:30,600 Speaker 1: their importance to the economy. But when you hear a 754 00:41:30,760 --> 00:41:34,759 Speaker 1: significant number like that U twenty billion dollar investment by 755 00:41:34,840 --> 00:41:39,719 Speaker 1: IBM among other companies with with similar announcements, that's something 756 00:41:39,800 --> 00:41:41,319 Speaker 1: that the President is going to want to play up. 757 00:41:41,600 --> 00:41:44,960 Speaker 1: And just thirty seconds left here, what's this overhaul at 758 00:41:45,000 --> 00:41:47,520 Speaker 1: the World Bank that Treasury Secretary Yellen is gonna be 759 00:41:47,560 --> 00:41:51,040 Speaker 1: talking about tonight. She is going to make the case 760 00:41:51,160 --> 00:41:54,040 Speaker 1: that I know some other people have made that the 761 00:41:54,160 --> 00:41:58,759 Speaker 1: World Bank is unnecessarily limited in the way it lends UH, 762 00:41:59,160 --> 00:42:04,319 Speaker 1: specifically saying that they should move beyond country specific loans UH, 763 00:42:04,440 --> 00:42:08,680 Speaker 1: and that in cases of UH supporting clean energy projects 764 00:42:08,800 --> 00:42:11,600 Speaker 1: where the benefit could go beyond the borders of a 765 00:42:11,719 --> 00:42:15,360 Speaker 1: single country, they should not be quite as limited in 766 00:42:15,680 --> 00:42:19,400 Speaker 1: in focusing on lending to a single country and requiring 767 00:42:19,800 --> 00:42:22,759 Speaker 1: that country to bear the costs and and UH and 768 00:42:22,960 --> 00:42:27,160 Speaker 1: focus on the benefits of each project. So for pushing 769 00:42:27,200 --> 00:42:28,960 Speaker 1: for the World Bank to take a broader view and 770 00:42:29,160 --> 00:42:32,840 Speaker 1: lend more as well, especially for clean energy. Thanks Jack Bloomberg. 771 00:42:32,880 --> 00:42:37,400 Speaker 1: Government Congressional reporter Jack Fitzpatrick with US this morning. Bloomberg 772 00:42:37,480 --> 00:42:40,920 Speaker 1: Surveillance is up next with Tom Keene, Jonathan Farrell, and 773 00:42:41,040 --> 00:42:45,120 Speaker 1: Lisa Bramowitz for Karen Moscow. I'm Nathan Hagar, and this 774 00:42:45,840 --> 00:42:46,880 Speaker 1: is Bloomberg