WEBVTT - Bloomberg Daybreak: October 6, 2022 - Hour 2 (Radio) 0:00:02.040 --> 0:00:05.320 Live from a Bloomberg interactive Burger Studios. This is Bloomberg 0:00:05.360 --> 0:00:09.120 Day Right for Thursday, October six two. Coming up this hour. 0:00:09.440 --> 0:00:13.760 Beneficials say the expectation for rate cuts next year is misplaced. 0:00:14.000 --> 0:00:17.160 The U S slams OPEC's decision to kur production. Elon 0:00:17.239 --> 0:00:20.160 must have wanted to slash his takeover price for Twitter, 0:00:20.239 --> 0:00:22.800 and hundreds of billions of dollars in market value have 0:00:22.920 --> 0:00:26.200 it wiped away? In the first month of this trust's government. 0:00:26.360 --> 0:00:29.040 New York City Council members are calling for housing asylum 0:00:29.120 --> 0:00:32.360 seekers and hotels and churches instead of Randall's Island. Plus 0:00:32.400 --> 0:00:34.960 more missile launches from North Korea on Mike Blood Blown 0:00:35.040 --> 0:00:37.920 More Ahead, I'm John Stash Howard. Sports the baseball regular 0:00:37.920 --> 0:00:40.519 season and then the Yankees lost the Mets one. They 0:00:40.560 --> 0:00:45.839 begin the postseason tomorrow night. That's all trading ahead on 0:00:45.920 --> 0:00:49.320 Bloomberg Day Break on Bloomberg eleven, Free on New York, 0:00:49.520 --> 0:00:54.160 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:58.640 Bloomberg nine sixty, San Francisco, Sirius x AM one nine 0:00:58.640 --> 0:01:01.560 Team and around the world. Old on Bloomberg Radio dot 0:01:01.600 --> 0:01:07.959 Com and via the Bloomberg Business app and good morning. 0:01:08.000 --> 0:01:11.039 I'm Kared Moscow. I'm Nathan Haygar. Bloomberg Daybreak is brought 0:01:11.080 --> 0:01:13.000 to you by B and Y Melon's Pershing Learned why 0:01:13.040 --> 0:01:16.520 the world's most sophisticated wealth management and institutional firms rely 0:01:16.600 --> 0:01:20.600 on Pershing to help them improve profitability, create efficiency, attract talent, 0:01:20.720 --> 0:01:24.160 and manage risk at Pershing dot Com and US futures 0:01:24.200 --> 0:01:26.520 are lower this morning six o one on Wall Street. 0:01:26.560 --> 0:01:29.120 We checked the markets every fifteen minutes throughout the trading day. 0:01:29.200 --> 0:01:32.360 On Bloomberg, SMP futures down twenty five points now futures 0:01:32.360 --> 0:01:35.319 down a hundred seventy eight and NASDACK futures are down 0:01:35.319 --> 0:01:38.520 eighty one. Tenure treasury down to thirty seconds here three 0:01:38.560 --> 0:01:41.240 point seven six percent, Nathan, we're caring. The drop in 0:01:41.319 --> 0:01:44.200 futures follows a late day come back on Wall Street yesterday. 0:01:44.200 --> 0:01:46.120 It fell as much as one point eight percent, but 0:01:46.319 --> 0:01:49.120 ended the session for the SMP five hundred down two 0:01:49.120 --> 0:01:52.680 tenths percent, fueled by a big options trade. Aaron Kennon, 0:01:52.760 --> 0:01:55.280 CEO at Clear Harbor Asset Management, says a drop in 0:01:55.360 --> 0:01:57.640 earnings is not being priced in yet. I think a 0:01:58.040 --> 0:02:01.800 very shallow recession, I would argue is probably priced in. 0:02:02.040 --> 0:02:04.920 But if we are seeing some sort of double digit 0:02:05.120 --> 0:02:10.520 decline and let's say sparnings next year, that's probably not 0:02:10.639 --> 0:02:15.360 yet priced into the market. Aaron Kennon A clear Heartborasset Management, 0:02:15.360 --> 0:02:17.960 says tomorrow's jobs report will be a key indicator for 0:02:18.000 --> 0:02:21.240 the path ahead well Nathan Feder Reserve officials are repeating 0:02:21.280 --> 0:02:24.360 the mantra that they don't plan to cut interest rates 0:02:24.400 --> 0:02:27.320 next year. San Francisco FED President Mary Daily and Atlanta 0:02:27.360 --> 0:02:29.840 FED chief Raphael Bostick are the latest to bang the 0:02:29.919 --> 0:02:32.600 drum on the need to keep tightening. We spoke yesterday 0:02:32.680 --> 0:02:35.840 with Daily, by c U says raising to a level 0:02:35.919 --> 0:02:39.959 that we believe is restrictive enough to bring inflation down, 0:02:40.240 --> 0:02:43.560 and then holding it there until we see inflation truly 0:02:43.600 --> 0:02:48.160 get close to two and and demonstrate that price stability 0:02:48.200 --> 0:02:51.840 is restored. Mary Dailey's comments are being echoed by Atlanta 0:02:51.880 --> 0:02:54.840 Fed President Raphael Bostick, who says rates still need to 0:02:54.880 --> 0:02:57.160 go much higher. I'd like to reach a point where 0:02:57.240 --> 0:03:00.320 policy is moderately restrictive, somewhere between four at four and 0:03:00.360 --> 0:03:02.200 a half percent by the end of this year, and 0:03:02.240 --> 0:03:04.800 then hold of that level and see how the economy 0:03:04.960 --> 0:03:08.480 and prices react. Now. The NFL president Raphael Bostake says 0:03:08.520 --> 0:03:11.440 there are encouraging signs on inflation, but he still sees 0:03:11.480 --> 0:03:14.640 the overall picture is challenging. Let's turn to oil now Karen, 0:03:14.680 --> 0:03:17.840 where a production cut by OPEC is making waves. Prices 0:03:17.840 --> 0:03:20.359 are currently steady a day after OPEC agreed to the 0:03:20.400 --> 0:03:23.919 biggest production cut since twenty twenty. The Alliance plans to 0:03:23.960 --> 0:03:27.239 slash daily output by two million barrels. Saw the Energy 0:03:27.240 --> 0:03:29.760 Minister Prince Abdulaz he has been salmon, spoke with us 0:03:29.760 --> 0:03:33.320 in Vienna. I don't want people to think that this 0:03:33.440 --> 0:03:37.040 is when waste in this case. No, it's a variety 0:03:37.160 --> 0:03:41.920 of conbluting uncertainties. And they could go yesterday altogether and 0:03:41.960 --> 0:03:44.560 to the positive side or to the negative side, or 0:03:44.560 --> 0:03:47.720 it could be accompanition. Saw the Energy Minister, Prince Abdulazi 0:03:47.760 --> 0:03:50.160 has been salmon, says the US lead initiative to slap 0:03:50.200 --> 0:03:53.080 a price camp on Russian oil is adding to market uncertainty. 0:03:53.320 --> 0:03:55.640 Checking prices now, they moved to take lower now with 0:03:55.840 --> 0:03:57.960 nime ex screwed down a tenth percent or ten cents 0:03:57.960 --> 0:04:00.640 at eighty seven dollar sixty seven cents of barrel. Brent 0:04:00.920 --> 0:04:04.720 is little changed, down six cents at thirty one cents. Well, 0:04:04.760 --> 0:04:07.400 the White House is pushing back against opex decision occur 0:04:07.560 --> 0:04:11.240 production Nathan, calling the move unnecessary and short sighted. We 0:04:11.320 --> 0:04:14.680 discussed the matter with National Economic Council Director Brian D's. 0:04:14.880 --> 0:04:17.560 As the President mentioned, we think it's unnecessary if you 0:04:17.680 --> 0:04:21.800 look at the global environment, where supply continues to be 0:04:21.960 --> 0:04:25.280 the predominant challenge. We've been working for some time to 0:04:25.880 --> 0:04:29.600 take action and encourage action globally to make sure that 0:04:29.680 --> 0:04:33.480 supply actually matches demand. White House Economic Advisor Brian d 0:04:33.680 --> 0:04:36.040 said the US or release ten million barrels from the 0:04:36.080 --> 0:04:39.720 Strategic Petroleum Reserve this month. He's also calling on gasoline 0:04:39.720 --> 0:04:42.600 companies to close the gap between wholesale and retail prices 0:04:42.640 --> 0:04:44.800 at the pump. Let's turn to the UK, now Karen, 0:04:44.800 --> 0:04:48.520 where political turmoil is still weighing on investor sentiment. Hundreds 0:04:48.520 --> 0:04:50.800 of billions of dollars have been wiped from the nation's 0:04:50.839 --> 0:04:53.320 stock and bond markets in the first month of Liz 0:04:53.400 --> 0:04:56.400 Trust's government. Let's get more from Bloomberg's U and Potts 0:04:56.440 --> 0:04:59.120 in London. Good morning, good morning, night and Karen three 0:04:59.160 --> 0:05:02.680 hundred and aty billion dollars. That's the total knocked off 0:05:02.720 --> 0:05:05.360 the value of UK stocks and bonds over the past month. 0:05:05.640 --> 0:05:08.520 While I said's globally have been royal by central banks tightening, 0:05:08.760 --> 0:05:11.920 confidence in the UK has taken a real battering. The 0:05:11.960 --> 0:05:14.679 September set off on the new government's unfounded tax cuts 0:05:14.680 --> 0:05:17.080 saw the pound hits a record low against the dollar, 0:05:17.360 --> 0:05:19.960 interventioned by the Bank of England and a swift climbed 0:05:20.000 --> 0:05:23.240 down by the Chancellor One Strategies, though, says some investors 0:05:23.279 --> 0:05:27.080 currently consider the UK as uninvestable. In London, i'mun part 0:05:27.120 --> 0:05:29.200 spin Back, Day break, hery new and thank you. Back 0:05:29.240 --> 0:05:31.320 Here in the US, we're learning more about the details 0:05:31.320 --> 0:05:34.279 behind Elon must takeover of Twitter. Turns out he was 0:05:34.279 --> 0:05:36.400 pushing for a lower price behind the scenes, and we 0:05:36.440 --> 0:05:40.160 get the details from Bloomberg's Lisa Mateo. Sources say Musks 0:05:40.240 --> 0:05:43.320 representatives and Twitter held talks in the past few weeks 0:05:43.360 --> 0:05:45.559 about a buy out for less than fifty four dollars 0:05:45.600 --> 0:05:48.040 and twenty cents of share, but they didn't go anywhere. 0:05:48.240 --> 0:05:50.839 The New York Times reported Musk had sought a thirty 0:05:50.880 --> 0:05:53.839 percent reduction in the price. This week must set in 0:05:53.839 --> 0:05:55.840 a letter to Twitter that he would be willing to 0:05:55.880 --> 0:05:59.039 complete the deal for the original price. In another development, 0:05:59.120 --> 0:06:02.000 the two sides of greed to postpone the billionaires long 0:06:02.040 --> 0:06:05.920 awaited deposition today in the company's lawsuit aimed at forcing 0:06:06.000 --> 0:06:09.039 him to go through with the forty four billion dollar buyout. 0:06:09.320 --> 0:06:12.599 Lisa Mateo Bloomberg Daybreak. Thanks Lisa, We have word of 0:06:12.600 --> 0:06:16.080 more corporate job cuts. This morning. General Electric is slashing 0:06:16.080 --> 0:06:20.120 positions that it's onshore wind turbine manufacturing business. Bloomberg News 0:06:20.160 --> 0:06:23.760 has learned GE will reduce its US onshore windworkforce by 0:06:24.200 --> 0:06:27.760 that's hundreds of jobs, moves designed to counter mounting losses 0:06:27.800 --> 0:06:30.800 at its renewable energy unit. And finally, news on the 0:06:30.880 --> 0:06:34.200 pandemic this morning, Nathan American Express ending our requirement that 0:06:34.279 --> 0:06:37.280 employees need to be vaccinated against COVID nineteen to enter 0:06:37.360 --> 0:06:40.120 the office. We get the story from Bloomberg's Charlie Pellett. 0:06:40.480 --> 0:06:44.320 This takes effect November one, stand It applies to offices 0:06:44.360 --> 0:06:48.560 across the United States, Canada, Australia, and New Zealand, all 0:06:48.600 --> 0:06:51.960 according to an internal memo two staff seen by Bloomberg. 0:06:52.160 --> 0:06:54.720 The New York based credit card company has been one 0:06:54.720 --> 0:06:58.400 of the few financial firms to embrace remote work in 0:06:58.480 --> 0:07:02.000 the aftermath of the pandemic in New York. Charlie Pellette 0:07:02.000 --> 0:07:05.240 Bloomberg day Break, Charlie, Thanks, futures are moving lower now, 0:07:05.400 --> 0:07:07.880 S and P futures down twenty six point. Staff futures 0:07:07.880 --> 0:07:10.320 down a hundred seventy one. Nastack futures are lower by 0:07:10.360 --> 0:07:13.080 eighty four points. In the tenure treasuries down five thirty 0:07:13.080 --> 0:07:17.040 seconds yield three point seven seven percent. Local headlines and 0:07:17.080 --> 0:07:23.040 a check of sports up next, This is Bloomberg and 0:07:23.080 --> 0:07:24.880 at six oh seven on Wall Street where fifty four 0:07:24.880 --> 0:07:27.520 degrees in Central Park still got that overturned tractor trailer 0:07:27.520 --> 0:07:29.720 on the northbound New Jersey Turnpike on ran from Roote 0:07:29.760 --> 0:07:32.840 eight team more coming up in traffic first, Michael Barr 0:07:32.840 --> 0:07:34.680 with what else is going on in New York and 0:07:34.720 --> 0:07:37.000 around the world. Michael, thank you very much. Nathan, New 0:07:37.080 --> 0:07:40.280 York City Council members are proposing housing asylum seekers and 0:07:40.360 --> 0:07:44.360 hotels and churches. The ideas from last night's council meet 0:07:44.400 --> 0:07:48.040 income after Mayor Eric Adams now wants to house migrants 0:07:48.040 --> 0:07:51.920 in a tent city at Randall's Island. Mayor Adams scrapped 0:07:51.920 --> 0:07:54.480 the original idea of having the migrant relief center in 0:07:54.640 --> 0:07:58.840 Orchard Beach after opposition from both sides of the debate. However, 0:07:58.920 --> 0:08:02.680 critics say the new Andal's Island location will still have 0:08:02.760 --> 0:08:06.560 the same problems, including access from migrants to get jobs, healthcare, 0:08:06.880 --> 0:08:10.520 and schools. President Biden will be in New York State today. 0:08:10.640 --> 0:08:13.640 You will visit a jobs event at an IBM campus 0:08:13.640 --> 0:08:17.280 in Poughkeepsie. IBM will announce plans to invest twenty billion 0:08:17.320 --> 0:08:20.320 dollars over the next decade of the campus. The President 0:08:20.360 --> 0:08:23.960 will also attend a Democratic fundraiser in New Jersey. Yesterday, 0:08:24.000 --> 0:08:28.520 President Biden visited southwest Florida, pledging support for storm victims 0:08:28.520 --> 0:08:31.680 who lost everything to Hurricane Ian. I promise you we're 0:08:31.680 --> 0:08:33.840 gonna be with you every step of the way. The 0:08:33.880 --> 0:08:37.040 people of Florida to all of you, We're in this together. 0:08:37.280 --> 0:08:41.600 The President got a warm welcome from Florida Governor Rhonda Santis. Mr. President, 0:08:41.600 --> 0:08:46.040 Welcome to Florida. We appreciate working together across various levels 0:08:46.040 --> 0:08:49.080 of government. Biden said. He and to Santists have put 0:08:49.160 --> 0:08:52.400 politics aside, focused on the storm, and have been in 0:08:52.440 --> 0:08:56.680 complete lockstep. More than thirty people, primarily children, were killed 0:08:56.679 --> 0:08:58.960 today when a gunman opened fun here in a child 0:08:59.040 --> 0:09:03.000 care center in northeastern Thailand. Authorities said the gunman took 0:09:03.040 --> 0:09:06.280 his own life. It's a tragic discovery and a horrific 0:09:06.320 --> 0:09:10.200 crime for family members kidnapped from a business in central 0:09:10.240 --> 0:09:14.319 California have been found dead. Merce Head County Sheriff Vernon 0:09:14.360 --> 0:09:18.600 Warnkers said last night that one suspect is hospitalized after 0:09:18.640 --> 0:09:21.359 trying to kill himself, but there may be other suspects 0:09:22.280 --> 0:09:25.360 just lived inside. Because this was completely totally senseless. We 0:09:25.400 --> 0:09:27.960 have a whole family wiped out and for what we 0:09:28.000 --> 0:09:31.040 don't know yet. Authorities have released surveillance video of a 0:09:31.080 --> 0:09:34.120 man kidnapping a baby, the child's mother, father, and uncle 0:09:34.160 --> 0:09:37.480 on Monday. North Korea fire to suspect a short range 0:09:37.480 --> 0:09:41.600 ballistic missiles today towards waters where a US aircraft carrier 0:09:41.679 --> 0:09:43.959 had been deployed to ratcheting up tensions in the region. 0:09:44.320 --> 0:09:47.400 It came shortly after North Korea condemned the Biden administration 0:09:47.440 --> 0:09:50.840 for redeploying the U S. S. Ronald Reagan aircraft carrier 0:09:50.880 --> 0:09:54.040 to waters east of the Peninsula. Global News twenty four 0:09:54.040 --> 0:09:57.120 hours a day on air and on Bloomberg Quicktake, powered 0:09:57.120 --> 0:09:59.719 by more than hundred journalists and analysts more than a 0:09:59.800 --> 0:10:03.319 hundre twenty countries. I'm Michael Barron. This is Bloomberg, Nathan. 0:10:03.400 --> 0:10:10.000 Thanks Michael almost six cent on All Street time for 0:10:10.040 --> 0:10:12.800 the Bloomberg Sports Update with John Stenshown all right. Eight 0:10:12.840 --> 0:10:15.480 to The baseball regular season is over. The Dodgers won 0:10:15.520 --> 0:10:17.840 a hundred eleven games, the most of the National late 0:10:17.920 --> 0:10:20.720 since the nineteen oh six Cubs. The Mets and Braves 0:10:20.760 --> 0:10:23.439 both won a hundred and one finished tied for first, 0:10:23.440 --> 0:10:26.560 but Atlanta won the season series ten to nine, and 0:10:26.559 --> 0:10:28.360 that's why the Braves at the first round by and 0:10:28.360 --> 0:10:30.280 the Mets have to play a best of three wild 0:10:30.280 --> 0:10:33.360 card series with San Diego. All the games at City Field. 0:10:33.400 --> 0:10:36.120 The openers tomorrow night with a terrific pitching matchup. It 0:10:36.120 --> 0:10:39.160 will be match ters or against the Pondres, You Darvers. 0:10:39.160 --> 0:10:41.400 Mets finished up and in Washington nine to two. Jeff 0:10:41.480 --> 0:10:43.640 McNeill got the day off and he was able to 0:10:43.720 --> 0:10:46.640 just barely hold off Freddie Freeman and win the National 0:10:46.760 --> 0:10:49.439 League Batting until I don't Neil hit three twenty six. 0:10:49.800 --> 0:10:52.720 He hit two forty nine last season kind of hard 0:10:52.720 --> 0:10:55.640 work and um, you know, trying to get back to 0:10:56.080 --> 0:10:57.520 you know, the player I knew I could be, you 0:10:57.520 --> 0:10:59.559 know after last year and the last year wasn't a 0:10:59.600 --> 0:11:01.920 great year for me, so um, you know, kind of 0:11:02.000 --> 0:11:04.120 wanted to you know, get back to you know who 0:11:04.120 --> 0:11:06.719 I am, and um, you know, it was lucky enough 0:11:06.720 --> 0:11:08.920 to be rewarded for that. Aaron Judge didn't play the 0:11:09.000 --> 0:11:11.600 Yankee season ending for to loss of Texas, did not 0:11:11.679 --> 0:11:13.720 win the batting Tyler would have given him the Triple 0:11:13.800 --> 0:11:16.679 Crown judgment. A second of the twin. Luisa Ray is 0:11:16.720 --> 0:11:18.800 the guy who caught the ball that Judge hit for 0:11:18.800 --> 0:11:21.240 his record breaking sixty second home run, has already been 0:11:21.240 --> 0:11:24.160 offered two million dollars by a sports member of Billia. 0:11:24.200 --> 0:11:27.920 Aption now at Giants practice before they leave today for London. 0:11:27.960 --> 0:11:30.440 A welcome sighte the return of center Nick Gates, who 0:11:30.480 --> 0:11:33.560 in Week two last year supper Day fracture leg injury 0:11:33.559 --> 0:11:36.200 that required seven surgeries. It was feared that it was 0:11:36.200 --> 0:11:38.199 going to end Gates's career. It's not known when he'll 0:11:38.480 --> 0:11:41.160 actually playing a game. Daniel Jones limited in practice with 0:11:41.200 --> 0:11:43.480 his ankle injury, but Jones has not yet been ruled 0:11:43.480 --> 0:11:46.360 out first Sunday's game of Green Day, John Stashu or 0:11:46.440 --> 0:11:49.920 Bloomberg Sports Nathan, Thank you, John stp. Futures are moving 0:11:49.960 --> 0:11:53.240 lower now down seven tenths per center, twenty six points down. 0:11:53.360 --> 0:11:56.440 Futures are down a hundred seventy six points. Nasdaq Future 0:11:56.480 --> 0:11:59.040 is lower by eighty six points. We'll talk about this 0:11:59.080 --> 0:12:03.000 market next if Liz Ann Saunders of Charles Schwab, this 0:12:03.559 --> 0:12:09.600 is Bloomberg Bloomberg eleven three oh weather sunshine low seventies 0:12:09.600 --> 0:12:12.600 today and tomorrow. Lots of sun on Saturday, but cooler 0:12:12.640 --> 0:12:15.280 only near sixty degrees will be in the low sixties 0:12:15.320 --> 0:12:18.160 in the sunshine by Sunday. Right now fifty four in 0:12:18.200 --> 0:12:25.120 Central Park markets. Headlines and breaking news twenty four hours 0:12:25.120 --> 0:12:28.079 a day at Bloomberg dot Com, the Bloomberg Business Out 0:12:28.160 --> 0:12:38.000 and at Bloomberg Quicktape's a Bloomberg Business Flash and I'm 0:12:38.080 --> 0:12:40.880 Karen Moscow. US Dock Index futures are falling as the 0:12:40.880 --> 0:12:45.160 OPEC close alliances planned to cut oil supply, stokes inflation fears, 0:12:45.160 --> 0:12:47.400 and as traders await labor market data e gage to 0:12:47.440 --> 0:12:50.200 the risk over session. We checked the markets every fifteen 0:12:50.200 --> 0:12:52.559 minutes throughout the trading day on Bloomberg get us in 0:12:52.600 --> 0:12:55.199 p futures are down twenty six points, dal Future is 0:12:55.240 --> 0:12:57.600 down one seventy two and as deck Future is down 0:12:57.640 --> 0:13:00.160 eighties seven. The decks in Germany is down for were 0:13:00.160 --> 0:13:02.800 tense of Upper said the tenure Treasury down three thirty 0:13:02.880 --> 0:13:05.840 seconds three point seven six percent in a yield on 0:13:05.840 --> 0:13:08.679 the two year four point one six percent. Nine X 0:13:08.720 --> 0:13:10.880 Screwed oil is down to tens per cent or twelve 0:13:10.960 --> 0:13:13.240 cents at eighty seven dollars sixty four cents of barrel 0:13:13.480 --> 0:13:15.400 comes gold up a tenth of upper cent or two 0:13:15.440 --> 0:13:18.520 dollars thirty cents. A seventeen twenty three ten announced the 0:13:18.600 --> 0:13:21.839 euro point two against the dollar, British found one point 0:13:21.840 --> 0:13:25.000 one to five five and the yen at one four 0:13:25.040 --> 0:13:28.040 point seven to In bitcoin this morning, it's up seven 0:13:28.040 --> 0:13:31.240 tenths percent to twenty thousand, one twenty five dollars as 0:13:31.240 --> 0:13:33.800 a Bloomberg Business Flash. Now here's Michael Barr with more 0:13:33.840 --> 0:13:36.439 on what's going on around the world. Michael Karen, thank 0:13:36.480 --> 0:13:39.559 you very much. More than thirty people, primarily children, were 0:13:39.640 --> 0:13:42.360 killed today when a gunman opened fire in a child 0:13:42.400 --> 0:13:46.160 care center in northeastern Thailand. Authority said the attacker later 0:13:46.160 --> 0:13:49.719 took his own life. President Biden visited Florida yesterday to 0:13:49.800 --> 0:13:53.000 offer support for the victims of Hurricane Ian. The President 0:13:53.080 --> 0:13:55.840 told victims that we are with you every step of 0:13:55.920 --> 0:13:58.600 the way. In baseball, on the last day of the 0:13:58.600 --> 0:14:01.600 regular season, the Yankee Is lost the Mats one over 0:14:01.600 --> 0:14:04.960 the Nationals nine to the Red Sox lost the Orioles 0:14:04.960 --> 0:14:07.200 split a double head over the Blue Jays, the Giants, 0:14:07.200 --> 0:14:10.120 and as one Global News twenty four hours a day 0:14:10.120 --> 0:14:12.920 on air and on Bloomberg Quick Take, powered by more 0:14:13.240 --> 0:14:15.679 than twenty seven hundred journalist and analyst and more than 0:14:15.679 --> 0:14:19.239 a hundred twenty countries. Michael Barr and this is Bloomberg. 0:14:19.320 --> 0:14:22.120 Nathan Okay, Michael. Thanks at six nineteen on Wall Street 0:14:22.200 --> 0:14:26.120 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, 0:14:26.160 --> 0:14:28.760 and we're joined now by liz Anne Saunders, chief investment 0:14:28.840 --> 0:14:32.120 strategist at Charles Schwab. As you watch futures take another 0:14:32.200 --> 0:14:35.720 leg lower this morning. We started this quarter off so well, 0:14:35.920 --> 0:14:39.280 liz Anne, but it looks perhaps like investor sentiment is 0:14:39.320 --> 0:14:41.360 back to where it started. Or is that taking it 0:14:41.400 --> 0:14:46.560 too far? Um? You know you're actually talking about sentiment indicators. 0:14:46.560 --> 0:14:48.480 It don't quite swing as wildly on a day to 0:14:48.560 --> 0:14:51.320 day basis as you see the market. I think it's 0:14:51.360 --> 0:14:54.720 just the the nature of the beast. And when you 0:14:54.800 --> 0:14:58.400 have a significant two day move like that the last 0:14:59.080 --> 0:15:02.280 four times we had back to back two and a 0:15:02.320 --> 0:15:06.680 half percent plus updates, we're all in the fall um 0:15:06.720 --> 0:15:09.960 into the winter of two thousand and eight, and so 0:15:10.000 --> 0:15:12.560 to see a bit of a reprieve in that case, 0:15:12.640 --> 0:15:16.880 you had unfortunately still double digit declines left ahead of 0:15:16.920 --> 0:15:19.040 you before you hit the March O nine bottom. And 0:15:19.040 --> 0:15:22.640 I'm not suggesting that that we're repeating that, but um 0:15:22.920 --> 0:15:25.760 to to have some profit taking kicking after such a 0:15:25.760 --> 0:15:28.880 strong two day move is not surprising, especially in this 0:15:28.920 --> 0:15:31.560 type of market. Now, I'll talk a little bit more 0:15:31.600 --> 0:15:34.760 about this type of market. What's predominating. I mean, we've 0:15:34.760 --> 0:15:38.600 heard of, particularly from the Federal Reserve officials, continuing to 0:15:38.640 --> 0:15:41.520 bang the drum about higher for longer interest rates. Is 0:15:42.080 --> 0:15:45.720 that the main focus for you? It is? But you also, 0:15:46.080 --> 0:15:50.920 um see the equity market moving somewhat in inverse lockstep 0:15:51.000 --> 0:15:55.320 with what bondyields are are doing. So even going back 0:15:55.360 --> 0:15:58.200 to the mid June low and the rally between mid 0:15:58.280 --> 0:16:01.360 June and mid August had a lot to do with 0:16:01.400 --> 0:16:03.760 what was happening in in bond yields, and I think 0:16:03.760 --> 0:16:07.200 more recently too, you had to reprieve both in bond 0:16:07.280 --> 0:16:10.360 yields and the dollar that I think was the called 0:16:10.360 --> 0:16:13.480 the fundamental set up for the two day rally that 0:16:13.600 --> 0:16:15.960 we have. So yes, I think it's it's it's rate 0:16:16.080 --> 0:16:18.560 and rates and Fed policy that are that are in 0:16:18.560 --> 0:16:21.080 the driver's seat in terms of market behavior. Do you 0:16:21.120 --> 0:16:24.960 see any further moves UH in bond yields given the 0:16:25.000 --> 0:16:29.360 message we're hearing from the FED, were of the view 0:16:29.440 --> 0:16:32.200 that at least the recent move on an intra day 0:16:32.240 --> 0:16:35.280 basis up to a little north of four percent on 0:16:35.400 --> 0:16:39.520 the ten year, that there's probably not a lot more 0:16:39.680 --> 0:16:43.600 upside beyond that, and we we we are not not 0:16:43.680 --> 0:16:46.160 definitively of the view that the Fed may be able 0:16:46.200 --> 0:16:53.040 to at least lower the pace of rate hikes UM 0:16:53.200 --> 0:16:57.200 sooner maybe than um. Some of the pessimists this this 0:16:57.280 --> 0:16:59.640 is distinct from a pivot. I think the notion of 0:16:59.680 --> 0:17:01.880 a p it to the extent that you define that 0:17:02.000 --> 0:17:05.119 as a shift from rate hikes to rate cuts. I 0:17:05.119 --> 0:17:08.560 think the set is appropriately tried to push way back 0:17:08.720 --> 0:17:11.000 on that notion, and that certainly sat behind the mid 0:17:11.119 --> 0:17:14.760 June to mid August rally, but they may not have 0:17:14.960 --> 0:17:18.040 to go to the mid four percent range, which is 0:17:18.080 --> 0:17:23.000 what the latest projections and dot spots showed. Um. You know, 0:17:23.080 --> 0:17:25.720 I think you're at about a sixty likelihood of a 0:17:25.800 --> 0:17:28.800 seventy basis point hike in November, but I wouldn't surprise 0:17:28.840 --> 0:17:35.520 if they started to telegraph maybe lower hikes, meaning fifty um, 0:17:35.560 --> 0:17:38.480 even if we get seventy five in November. Interesting you 0:17:38.520 --> 0:17:40.840 say that because we just heard from Raphael Boston from 0:17:40.840 --> 0:17:43.359 the Atlanta Fed yesterday saying that he'd be okay with 0:17:43.400 --> 0:17:45.280 four to four and a half percent. I mean, you 0:17:45.320 --> 0:17:47.120 put the four and a half percent number out there, 0:17:48.359 --> 0:17:52.239 So that's one FED speaker, and that's the stance I 0:17:52.280 --> 0:17:54.679 think that many of them have right now. We just 0:17:54.760 --> 0:17:59.640 think with the leading indicators of inflation in many cases 0:17:59.760 --> 0:18:03.000 have significantly rolled over. You saw it in both I 0:18:03.200 --> 0:18:08.200 s M manufacturing and I s M services prices paid. Um. 0:18:08.240 --> 0:18:12.119 This is leaving aside oil. Obviously, given the recent news 0:18:12.160 --> 0:18:16.119 there that there may be a point at which the 0:18:16.200 --> 0:18:19.719 FED can just lift its foot off the brake um. 0:18:20.400 --> 0:18:24.520 I also think, though importantly, as they really have been emphasizing, 0:18:25.440 --> 0:18:28.600 whenever they get to their destination, whether it's four in 0:18:28.640 --> 0:18:31.120 a quarter or four and a half four and three quarters, 0:18:31.400 --> 0:18:33.560 they're going to stay there for a while, that this 0:18:33.640 --> 0:18:37.880 isn't going to be a one eight two rate cuts, 0:18:38.400 --> 0:18:43.280 other than if the economic deterioration that they're actually trying 0:18:43.320 --> 0:18:46.960 to engineer here a bit in order to bring inflation 0:18:47.040 --> 0:18:52.600 down sustainably, or financial instability really kicking in. I think 0:18:52.640 --> 0:18:56.560 the Fed gets to their destination and they stay a while. 0:18:56.760 --> 0:18:59.040 Just about thirty seconds left here. Do you think tomorrow's 0:18:59.119 --> 0:19:02.760 jobs report helps the Fed get to that destination? Depends 0:19:02.800 --> 0:19:05.480 on what it is. I think some of the labor 0:19:05.520 --> 0:19:08.560 market data, not least being the huge drop in job openings, 0:19:08.560 --> 0:19:12.800 which is something they've specifically cited, is what they want 0:19:12.800 --> 0:19:15.640 to see some contraction in, but they would ideally love 0:19:15.640 --> 0:19:19.520 it to happen exclusive of a significant increase in the 0:19:19.600 --> 0:19:22.720 unemployment rate or significant deterioration in pay rolls. I think 0:19:22.760 --> 0:19:26.760 a hotter than expected number from a stock market perspective 0:19:26.880 --> 0:19:30.960 is probably not a good thing. Thanks as always, Lizanne, 0:19:31.000 --> 0:19:34.480 great getting your thoughts. Liz Ane Saunders, chief investment strategist 0:19:34.560 --> 0:19:37.240 at Charles Schwab with us this morning as we watch 0:19:37.320 --> 0:19:40.680 futures move lower. Now, SMP futures are down twenty six 0:19:40.720 --> 0:19:43.680 points down, futures down a hundred seventy five and NASDAC 0:19:43.720 --> 0:19:47.040 futures are lower by eighty six points ten. Your treasuries 0:19:47.080 --> 0:19:49.800 down four thirty seconds for yield of three point seven 0:19:49.920 --> 0:19:53.160 seven percent. NIMEX crude moving a bit lower now, down 0:19:53.200 --> 0:19:55.720 two tenths per cent, or fourteen cents at eighty seven 0:19:55.720 --> 0:19:59.880 dollars sixty two cents of barrel. Stay with us. You're 0:20:00.040 --> 0:20:08.720 listening to Bloomberg Daybreak Bloomberg eleven three oh weather, sunshine, 0:20:08.760 --> 0:20:12.119 low seventies today and tomorrow. We're gonna keep it sunny 0:20:12.119 --> 0:20:14.480 for the weekend, but it's gonna be cooler, only around 0:20:14.480 --> 0:20:18.000 sixty for Saturday, low sixties for Sunday. Right now in 0:20:18.040 --> 0:20:25.760 Central Park, broadcasting ve from the Bloomberg Interactive Broker Studio 0:20:25.840 --> 0:20:29.040 in New York. Bloomberg e Living Freedom to Washington, d C. 0:20:29.240 --> 0:20:32.680 Bloomberg ninety nine one to Boston, Bloomberg on OH six 0:20:32.760 --> 0:20:35.960 one to San Francisco, Bloomberg nine sixteen to the country. 0:20:36.040 --> 0:20:38.679 Sirius XM to the one nine team and around the 0:20:38.680 --> 0:20:42.760 bloom the Bloomberg Business and Bloomberg Radio dot com. This 0:20:43.080 --> 0:20:51.680 is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. 0:20:51.680 --> 0:20:54.560 I'm Nathan Hagar and I'm Karen Moscow, and we're just 0:20:54.640 --> 0:20:57.200 about three hours away from the open of US trading. 0:20:57.240 --> 0:20:58.960 Time to the five things that you need to notice 0:20:58.960 --> 0:21:03.080 start your day. Brought to you by Interactive Brokers. Interactive 0:21:03.119 --> 0:21:05.600 Brokers clients are an interest of up to two point 0:21:05.640 --> 0:21:08.440 five eight percent on the idle cash and their brokerage accounts. 0:21:08.680 --> 0:21:11.119 That's just one of the many reasons clients use interactive 0:21:11.160 --> 0:21:14.720 brokers to trade stocks, options, futures, currencies, bonds, funds, crypto 0:21:14.800 --> 0:21:18.080 and more. Visit ibkr dot com slash interest rates to 0:21:18.240 --> 0:21:21.800 learn more. At first, US futures are lower this morning, 0:21:21.800 --> 0:21:24.840 and that's after stocks and after two day winning streaky yesterday. 0:21:25.080 --> 0:21:28.600 Mainstay Capital Management founder David could Law says, right now 0:21:28.680 --> 0:21:32.680 it's time to be defensive. The classic sixty portfolio this 0:21:32.840 --> 0:21:37.080 down more than this year. Liquid alternatives that offer an 0:21:37.080 --> 0:21:40.679 opportunity for a positive return because of the strategies of 0:21:40.760 --> 0:21:45.040 shorting stocks actually generate positive returns. David could law with 0:21:45.080 --> 0:21:48.280 Mainstay Capital says it's wishful thinking to believe that rate 0:21:48.359 --> 0:21:52.080 heights will bring down inflation anytime soon. Stealth Karen FED 0:21:52.160 --> 0:21:55.359 officials keep banging the drum for tighter policy, insisting they 0:21:55.400 --> 0:21:58.359 do not plan to cut rates next year. San Francisco 0:21:58.480 --> 0:22:01.879 FED President Mary Daly's oak with Bloomberg yesterday, it's also 0:22:02.040 --> 0:22:05.280 very damaging to the economy to have this level of inflation, 0:22:05.359 --> 0:22:08.040