WEBVTT - Bloomberg Daybreak: November 2, 2022 - Hour 1 (Radio) 0:00:01.800 --> 0:00:05.080 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.160 --> 0:00:08.879 day Break for Wednesday, November two. Coming up this hour, 0:00:09.080 --> 0:00:12.440 Wall Street prepares for today's FED decision and news conference. 0:00:12.600 --> 0:00:16.279 Amazon freezes hiring and one of its profitable businesses, three 0:00:16.320 --> 0:00:19.319 big pharmacy chains reach a multibillion dollar settlement in the 0:00:19.360 --> 0:00:23.360 opioid crisis, and financial leaders take stock at a global economy. 0:00:23.400 --> 0:00:26.400 At a summit in Hong Kong, two Newark police officers 0:00:26.400 --> 0:00:29.120 were shot as the suspect remains on the loose. Plus 0:00:29.160 --> 0:00:32.240 campaigning with only six days until the mid term elections. 0:00:32.440 --> 0:00:35.320 I'm Michael Blarr more Ahead, I'm John Stashower and sports 0:00:35.320 --> 0:00:37.479 the Next Way That co chief change and then lost. 0:00:37.520 --> 0:00:40.040 The local hockey teams all warned the Philly jut out 0:00:40.040 --> 0:00:44.720 the Astros in Game three of the World Series. That's 0:00:44.760 --> 0:00:48.680 all trading ahead on Bloomberg Daybreak on Bloomberg eleven three, 0:00:48.720 --> 0:00:53.000 on New York Bloomberg nine one, Washington d C, Bloomberg 0:00:53.000 --> 0:00:56.720 one oh six one, Boston, Bloomberg nine sixties and Francisco 0:00:57.200 --> 0:01:00.240 Syrius Exam one nine team and around the world on 0:01:00.400 --> 0:01:07.800 Bloomberg Radio dot Com and by the Bloomberg Business up thy, 0:01:07.800 --> 0:01:10.680 Good morning. I'm Nathan Hager and I'm Kared Moscow and 0:01:10.800 --> 0:01:13.600 US DOT index futures are higher this morning. We are 0:01:13.600 --> 0:01:15.360 coming up to five oh one on Wall Street. Iv 0:01:15.360 --> 0:01:17.840 ME checked the markets every fifteen minutes throughout the trading 0:01:17.920 --> 0:01:21.400 day on Bloomberg S and P futures up about thirteen 0:01:21.440 --> 0:01:24.920 points and Down futures up seventy six. Nastack futures up 0:01:24.959 --> 0:01:28.000 forty seven. The decks in Germany's up tenth of upper set. 0:01:28.160 --> 0:01:30.880 Can your treasury a little change? Yield four point oh 0:01:30.880 --> 0:01:33.520 four percent and a yield on the two year four 0:01:33.560 --> 0:01:36.760 point five zero percent, Nathan Karen, We begin this morning 0:01:36.760 --> 0:01:39.880 with today's FED decision and news conference from J. Powell. 0:01:39.920 --> 0:01:42.560 Wall Street has been waiting for it all week. Let's 0:01:42.560 --> 0:01:45.880 get a preview now from Bloomberg Economics correspondent Michael McKee. 0:01:46.040 --> 0:01:48.600 The focus of the November FED meeting is going to 0:01:48.640 --> 0:01:51.840 be the December FED meeting once again. Central bankers have 0:01:51.920 --> 0:01:54.200 told us they intend to raise interest rates by three 0:01:54.280 --> 0:01:57.480 quarters of a percentage point to four percent this week, 0:01:57.680 --> 0:02:00.160 but there have also been some hints from some AT 0:02:00.200 --> 0:02:03.320 officials and some data that they might dial back to 0:02:03.400 --> 0:02:06.480 a half point rise in December at a quarter point rise. 0:02:06.520 --> 0:02:09.320 After that. Much will depend on how the economy develops, 0:02:09.360 --> 0:02:12.000 but markets would like a better idea of just how 0:02:12.080 --> 0:02:15.280 high the Fed will go. Answering that question without creating 0:02:15.320 --> 0:02:18.840 more market volatility will be Chairman J Powell's main job 0:02:18.960 --> 0:02:22.720 after Wednesday's meeting. Michael McKay Bloomberg Daybreak. All'm Mike. Thanks 0:02:22.720 --> 0:02:25.600 and stay with Bloomberg Radio and Television for live analysis 0:02:25.680 --> 0:02:28.280 of the Fed decision. It all begins at one thirty 0:02:28.360 --> 0:02:31.880 pm Wall Street Time on a special edition of Bloomberg Surveillance. 0:02:32.320 --> 0:02:35.080 And as we await that policy decision, Nathan, the chorus 0:02:35.160 --> 0:02:37.920 is growing louder that rate hikes will eventually lead to 0:02:37.960 --> 0:02:41.400 a recession. Luke Ellis is chief executive officer of Man Group. 0:02:41.600 --> 0:02:43.560 You're going to get a recession in the US. That's 0:02:43.639 --> 0:02:46.840 sort of inevitable. They want to get rid of inflection. 0:02:46.880 --> 0:02:48.520 If they want to get inflestion down to a two 0:02:48.600 --> 0:02:51.239 percent target, then yes, I was sorry. There is a 0:02:51.360 --> 0:02:56.080 theoretical soft banding runway, but it's so thin you wouldn't 0:02:56.080 --> 0:02:58.000 want to try to land a plane in a hurricane 0:02:58.000 --> 0:03:00.760 in it. Man Group ce l look as ces US 0:03:00.800 --> 0:03:03.320 inflation slowing to three and a half to four percent 0:03:03.400 --> 0:03:05.520 as soon as next year. Well, Karen m and A 0:03:05.639 --> 0:03:08.560 on Wall Street has been slowing down, but David Solomon 0:03:08.600 --> 0:03:11.519 expects that to change. The Goldman Sax CEO sees a 0:03:11.600 --> 0:03:14.680 recovery in deal making next year. He makes remarks about 0:03:14.680 --> 0:03:18.000 that and the current state of financial markets. Generally speaking, 0:03:18.000 --> 0:03:20.560 when we've had these periods in the past, it takes 0:03:20.680 --> 0:03:24.160 somewhere between two and four quarters, sometimes maybe six quarters, 0:03:24.440 --> 0:03:26.920 you know, to rebalance. I think we're going through that 0:03:26.960 --> 0:03:30.560 rebalancing period. I think there's still a significant amount of uncertainty, 0:03:30.560 --> 0:03:32.720 but as we get at three and we start to 0:03:32.720 --> 0:03:36.040 have a clear understanding of the trajectory of capital markets. 0:03:36.720 --> 0:03:39.920 Goldman Sax CEO David Solomon spoke at today's Global Financial 0:03:39.920 --> 0:03:43.080 Investment Summit in Hong Kong. But Solomon is one of 0:03:43.120 --> 0:03:47.720 several financial leaders attending that summit. Nathan HSBC CEO nol 0:03:47.800 --> 0:03:49.960 Quinn is also there and we got up with them 0:03:49.960 --> 0:03:52.840 to discuss the impact COVID as having on the Chinese economy. 0:03:53.320 --> 0:03:56.040 The COVID is a big story because with with a 0:03:56.120 --> 0:03:59.360 restriction and movement into anoda China, it's very odd for 0:03:59.400 --> 0:04:03.240 the insiductional and community to reconnect with the economy. But 0:04:03.360 --> 0:04:06.360 it will rebound and China will open up at some 0:04:06.440 --> 0:04:08.960 points inside. But I think it is important for the 0:04:09.000 --> 0:04:11.800 economy for China eventually to find the solutions of the 0:04:11.840 --> 0:04:16.240 COVID strategy. HSBC's Noel Quinn sees Asia as a strong 0:04:16.320 --> 0:04:18.839 platform for growth. Stay tuned for more of that interview 0:04:18.880 --> 0:04:21.880 coming up shortly right here on Bloomberg Daybreak. Turning back 0:04:21.920 --> 0:04:25.159 to markets, Karen, Stocks in Asia rose again overnight on 0:04:25.200 --> 0:04:27.960 optimism COVID restrictions will lease. Let's get the recap from 0:04:27.960 --> 0:04:31.359 Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good morning, Nathan, 0:04:31.360 --> 0:04:33.680 and Karen. Afternoon trade in Hong Kong was halted due 0:04:33.720 --> 0:04:36.279 to a storm. However, the Han Sang index still posted 0:04:36.320 --> 0:04:39.480 its best two day games since March. Mainland shares also 0:04:39.520 --> 0:04:42.280 climbed as investors tried to waste speculation that China may 0:04:42.320 --> 0:04:45.719 scrap its COVID zero policy. In Taipei, on high shares 0:04:45.839 --> 0:04:48.960 rose despite China looking down the Jangel Airport economy zone 0:04:49.080 --> 0:04:52.279 where fox CON's iPhone plant is located, to cut the 0:04:52.320 --> 0:04:55.160 COVID spread and the end strengthened for a second straight day, 0:04:55.200 --> 0:04:57.480 with traders considering the risk that a hawk ish bed 0:04:57.560 --> 0:05:00.880 may boost the dollar to levels that trigger Russian intervention. 0:05:01.240 --> 0:05:05.279 On a Japanese holiday in Singapore, Juliette Sale Bloomba Daybreak. 0:05:05.440 --> 0:05:08.400 All right, Juliet, thanks so staying in China now. Bloomberg 0:05:08.440 --> 0:05:11.640 News has learned that Teslash at its flagship showroom in 0:05:11.760 --> 0:05:14.560 Beijing last month. The electric car maker has a number 0:05:14.560 --> 0:05:17.479 of showrooms in China's capital, and the one now shuttered 0:05:17.680 --> 0:05:20.240 was in a shopping center in a residential area. For 0:05:20.279 --> 0:05:23.239 the most part, Tesla sales cars via an online direct 0:05:23.279 --> 0:05:26.839 sales model, rather than through dealerships or showrooms. And other 0:05:26.839 --> 0:05:30.440 corporate news Karen, Amazon's taking more measures to align expenses 0:05:30.440 --> 0:05:32.960 with a slowdown in sales. We get the details from 0:05:33.000 --> 0:05:36.440 Bloomberg's Lisa Mateo. Bloomberg News has learned that the world's 0:05:36.520 --> 0:05:39.720 largest e commerce company is freezing staffing levels and it's 0:05:39.800 --> 0:05:43.560 profitable advertising business. The decision to keep the advertising unit 0:05:43.600 --> 0:05:46.760 workforce at its current level shows Amazon is looking to 0:05:46.760 --> 0:05:49.600 squeeze more profit out of the fast growing business and 0:05:49.640 --> 0:05:54.240 the busy holiday quarter. Amazon's advertising business largely sponsored search 0:05:54.320 --> 0:05:56.760 results on its web store generated more than nine and 0:05:56.760 --> 0:06:00.920 a half billion dollars last quarter. Lisa Mateo, Boomberg Daybreak. 0:06:01.200 --> 0:06:03.440 Al rightly, so thank you. I'll shares of Airbnb or 0:06:03.520 --> 0:06:05.600 on the Move this morning down five and a half 0:06:05.640 --> 0:06:08.719 percent in early trading. That's after a disappointing outlook for 0:06:08.800 --> 0:06:11.280 bookings in the fourth quarter. We get the details from 0:06:11.320 --> 0:06:16.000 Bloomberg Shirley Pellett. It suggests that consumer preferences are shifting 0:06:16.000 --> 0:06:19.640 away from higher cost rentals of thrive during the pandemic 0:06:19.839 --> 0:06:23.560 and back to urban and cross border destinations. The San 0:06:23.640 --> 0:06:27.360 Francisco based home sharing platform said it expects the pace 0:06:27.480 --> 0:06:31.440 of nights and experiences booked will quote moderate slightly in 0:06:31.480 --> 0:06:34.120 the fourth quarter compared with the third quarters gain of 0:06:34.160 --> 0:06:38.480 twenty five percent. Airbnb reported ninety nine point seven million 0:06:38.640 --> 0:06:42.320 nights and experiences booked in the three months ended in September, 0:06:42.680 --> 0:06:45.839 falling short of analy ass estimates of ninety nine point 0:06:45.920 --> 0:06:50.400 nine million. In New York. Charlie Pellett Bloomberg Daybreak, Charlie, thanks, 0:06:50.400 --> 0:06:52.719 and finally, it's one of the last big settlements over 0:06:52.720 --> 0:06:56.479 the opioid epidemic. Sources tell Us, CVS Health, Walgreen's Boots 0:06:56.480 --> 0:06:59.919 Alliance and Walmart have tentatively agreed to pay twelve billion 0:07:00.040 --> 0:07:03.400 dollars to resolve state and local lawsuits over mishandling of 0:07:03.400 --> 0:07:06.240 addictive pain killers. Were told the deal won't be finalized 0:07:06.320 --> 0:07:10.119 until enough states, cities, and counties agree to it. SMP 0:07:10.240 --> 0:07:12.760 Futures are hired by ten points. Stout Futures up fifty 0:07:12.760 --> 0:07:15.800 six nanstack Futures up thirty nine points. Straight ahead your 0:07:15.840 --> 0:07:18.640 latest local headlines in the check of sports. This is 0:07:18.640 --> 0:07:24.920 Bloomberg South five oh seven on Wall Street where at 0:07:24.920 --> 0:07:27.360 fifty eight degrees in Central Park got an accident on 0:07:27.400 --> 0:07:31.200 the westbound Grand Central Park Weights by Street. Details coming 0:07:31.280 --> 0:07:33.800 up in Traffic First Michael Barr with more on what's 0:07:33.840 --> 0:07:36.000 going on in New York and around the world. Good morning, Michael, 0:07:36.160 --> 0:07:40.080 Good morning Nathan. To Newark police officers were found wounded 0:07:40.120 --> 0:07:42.680 in a shooting in a residential neighborhood not far from 0:07:42.680 --> 0:07:46.680 the city's airport, the Eskis County Prosecutor's office. As the 0:07:46.720 --> 0:07:50.120 officers were being treated for injuries at a nearby hospital. 0:07:50.480 --> 0:07:53.000 One was shot in the leg, the other in the neck. However, 0:07:53.040 --> 0:07:55.480 both are said to be in stable condition. Es Sex 0:07:55.600 --> 0:08:00.800 County acting Prosecutor Ted Stevens says the suspected shooter, Ndel Howard, 0:08:01.040 --> 0:08:03.960 faces charges and remains on the loose two counts of 0:08:03.960 --> 0:08:08.000 attempted murder on the officers, as well as unauthorized possession 0:08:08.000 --> 0:08:11.360 of a weapon and unauthorized possession of a weapon for 0:08:11.880 --> 0:08:16.480 unlawful purposes. Prosecutor Stephen says the gunmen opened fire on 0:08:16.720 --> 0:08:19.680 police as they were serving to search board. A New 0:08:19.760 --> 0:08:23.000 York appeals court upheld a new state law allowing absentee 0:08:23.040 --> 0:08:26.239 ballots to be reviewed before election day. The court says 0:08:26.320 --> 0:08:30.000 it would be extremely disruptive to change the rules with 0:08:30.080 --> 0:08:35.040 absentee voting already underway. Republicans challenged the law. Former President 0:08:35.040 --> 0:08:38.120 Obama stump for Democrats last night in Las Vegas, with 0:08:38.320 --> 0:08:41.880 less than a week to the midterm elections. Obama campaigned 0:08:41.920 --> 0:08:47.200 for incumbent Katherine Cortes Masto in Nevada's Senate race. Obama 0:08:47.280 --> 0:08:51.360 was critical of Republicans. They want to gut social security 0:08:52.120 --> 0:08:57.960 at Medicare and then give They're Welsley friends and big 0:08:58.000 --> 0:09:02.280 corporations more tax cuts. Poles show a debt eat between 0:09:02.400 --> 0:09:07.520 Mastow and Republican Adam Laxalt. Another closely watched Senate race 0:09:07.800 --> 0:09:12.160 is Pennsylvania between Democrat John Fetterman and Republican Memit Oz 0:09:12.600 --> 0:09:15.480 dr Oz at the campaign TRIOI in Lower Bucks County. 0:09:15.559 --> 0:09:17.920 Speaking at a get out the vote rally in Ben 0:09:17.960 --> 0:09:22.800 Salem Township last night, Washington's getting the wrong because of 0:09:22.880 --> 0:09:27.600 the extreme positions that they're accepting of, and they need 0:09:27.679 --> 0:09:33.240 a dose of Pennsylvania reality. Fetterman's lead over Oz is shrinking, 0:09:33.280 --> 0:09:38.320 with supporting Fetterman to forcent for Oz. Former Israeli Prime 0:09:38.320 --> 0:09:41.520 Minister Benjamin Nettan Yahoo appears to be heading towards victory 0:09:41.520 --> 0:09:45.560 in national elections. Brasilian President John Eyre Bolsonaro vow to 0:09:45.600 --> 0:09:48.920 respect the constitution and authorized the government to start the 0:09:48.960 --> 0:09:53.040 political transition after his loss to Luis Ignatio Lula Da Silva. 0:09:53.400 --> 0:09:55.920 Global News twenty four hours a day on air and 0:09:56.080 --> 0:09:59.200 on Bloomberg Quick Tank, powered by more than twenty seven 0:09:59.280 --> 0:10:02.199 hundred journalists Mentalist more than a hundred twenty countries. I'm 0:10:02.240 --> 0:10:09.679 Michael Barron. This is Bloomberg, Nathan. Thank you, Michael. Coming 0:10:09.760 --> 0:10:11.199 up to five ten on Wall Street time for the 0:10:11.200 --> 0:10:14.000 Bloomberg Sports Update. Procy by tri State Autie. Good morning, 0:10:14.040 --> 0:10:17.439 John Stenshower Morny Nathan. These are good times in Philadelphia. 0:10:17.480 --> 0:10:19.920 The Eagles are seven oh and the Phillies are two 0:10:19.920 --> 0:10:22.680 wins from what would be just their third ever World 0:10:22.760 --> 0:10:25.400 Series title. They won Game three over the heavily favored 0:10:25.440 --> 0:10:29.160 Astros seven to nothing. The Phillies hit five home runs, 0:10:29.200 --> 0:10:31.920 Houston had only five hits. The series is to one. 0:10:32.400 --> 0:10:35.000 Game four in Philly. Tonight a whirlwind day and Brooklyn, 0:10:35.040 --> 0:10:37.040 the Nets had a quote party of the ways with 0:10:37.120 --> 0:10:40.120 coach Steve Nash just seven games into the season. Then 0:10:40.160 --> 0:10:43.760 came multiple reports there on the verge of replacing Nash 0:10:43.800 --> 0:10:46.760 with m a U Doka, nash assistant in Brooklyn, who 0:10:46.760 --> 0:10:49.760 then coached the Celtics to the NBA Finals last season, 0:10:49.880 --> 0:10:53.000 but it's now serving a team imposed year long suspension 0:10:53.400 --> 0:10:56.760 for an improper relationship with the Celtics employee Jacques Vaughan. 0:10:56.840 --> 0:10:58.800 Coach the Nets. Last night at Barkley's, they blew the 0:10:58.920 --> 0:11:01.719 lead Chicago one one O eight to ninety nine. Zach 0:11:01.760 --> 0:11:04.400 Lavina scored the Nets by himself in the fourth quarter. 0:11:04.800 --> 0:11:07.559 Kavina ran scored thirty two, also at seven turnovers, and 0:11:07.679 --> 0:11:10.880 Kyrie Irving shot two of twelve, missed all six of 0:11:10.920 --> 0:11:12.560 his three pointers the nets of all the two and 0:11:12.679 --> 0:11:16.560 six at the Garden. Rangers and Flyers scoreless for sixty 0:11:16.640 --> 0:11:19.640 four minutes. Here's Hee's and to the Rangers should now 0:11:19.640 --> 0:11:22.520 have the right shide back out connecting shots, which was 0:11:22.559 --> 0:11:25.439 a hit. Carrots all the way around. They're up, Clevatta, 0:11:25.520 --> 0:11:29.280 daft let Craft break away, Chris prodder Oga and over 0:11:29.400 --> 0:11:35.280 time dates score ESPN New York to call the Chris 0:11:35.360 --> 0:11:37.800 Crider game winner. Rangers third straight win after the four 0:11:37.880 --> 0:11:39.880 game skid. Devils are hot. They won five two in 0:11:40.000 --> 0:11:42.840 Vancouver and the Islanders won three one at Chicago. First 0:11:42.960 --> 0:11:45.440 Rankings from the College Football Playoff Committee. The top four 0:11:45.480 --> 0:11:49.240 are Tennessee, Ohio, State, Georgia and Clemson. John Stash thatwar, 0:11:49.280 --> 0:11:52.480 Bloomberg Sports Nathan John Thanks SMP Futures now have six 0:11:52.520 --> 0:11:55.240 point staff features of twenty six. Nestack Future is also 0:11:55.360 --> 0:11:58.360 higher by twenty six points. The tenure treasuries little change 0:11:58.440 --> 0:12:01.959 now the yield four point zero four percent. You're listening 0:12:02.000 --> 0:12:08.559 to Bloomberg day Break and the Bloomberg Sports Report was 0:12:08.600 --> 0:12:10.640 brought to you by Audie. Don't let someone else drive 0:12:10.679 --> 0:12:13.040 off in the Audi model. You've always wanted visit your 0:12:13.080 --> 0:12:15.439 local price state Audie Dealer to get behind the wheel 0:12:15.480 --> 0:12:18.240 of yours today, or visit Autie Offers dot com for 0:12:18.280 --> 0:12:25.200 more information, markets, headlines and breaking news twenty four hours 0:12:25.240 --> 0:12:28.199 a day at Bloomberg dot Com, the Bloomberg Business Out 0:12:28.320 --> 0:12:38.240 and at Bloomberg Quick takes a Bloomberg Business Flash and 0:12:38.280 --> 0:12:40.719 I'm fair in Moscow A butties are advancing ahead of 0:12:40.760 --> 0:12:43.840 the federal reserves policy meeting, a gage of the dollar falling, 0:12:43.920 --> 0:12:46.880 gold rising. We checked the markets every fifteen minutes throughout 0:12:46.880 --> 0:12:49.760 the trading day on Bloomberg as in the Future is 0:12:49.840 --> 0:12:52.440 up seven points this morning, Down Future is up thirty one, 0:12:52.800 --> 0:12:54.920 and now's deck Future is up twenty eight. The decks 0:12:54.960 --> 0:12:57.400 in Germany's down a tenth of a percent. Ten your 0:12:57.440 --> 0:13:00.079 treasury little change. You'll four point oh four percent to 0:13:00.120 --> 0:13:03.240 the yield them a two year four point five zero percent. Now, 0:13:03.320 --> 0:13:05.280 I make screwed oil is up four tenths per cent, 0:13:05.400 --> 0:13:07.840 or thirty eight cents at eighty eight dollars seventy seven cents. 0:13:07.880 --> 0:13:10.199 In Barrel Co makes gold up half per cent or 0:13:10.240 --> 0:13:13.520 seven dollars seventy cents at sixteen fifty seven. Forty announced 0:13:13.920 --> 0:13:17.120 the euro point nine one against the dollar. British found 0:13:17.160 --> 0:13:20.160 one point one nine nine and again one forty seven 0:13:20.240 --> 0:13:24.080 point one four bitcoin this morning. That'll change at twenty thousand, 0:13:24.320 --> 0:13:27.040 about twenty thousand, five hundred dollars now, and that's a 0:13:27.080 --> 0:13:29.839 Bloomberg business flash. Now here's Michael Barr with more on 0:13:29.920 --> 0:13:33.040 what's going on around the world. Michael the Morning, Good morning, Karen. 0:13:33.080 --> 0:13:36.719 Brazilian president John Eyre Bolsonaro reportedly told members of the 0:13:36.760 --> 0:13:40.280 country Supreme Court that his election battle against leftist rival 0:13:40.400 --> 0:13:43.840 Louis Ignatio Lula da Silva has come to an end, 0:13:43.920 --> 0:13:47.520 marking one step closer toward a concession after his defeat, 0:13:48.120 --> 0:13:51.640 Israel's fifth election in four years looks set to return 0:13:51.720 --> 0:13:54.920 Benjamin Etan Yahoo to power, with exit polls adjusting a 0:13:55.000 --> 0:13:57.600 strategy of forming an alliance with the nation's far right 0:13:57.720 --> 0:14:00.319 has succeeded. Game three of the World Series raise the 0:14:00.400 --> 0:14:04.000 Philly shut out the Astros seven zip. Philadelphia now leads 0:14:04.080 --> 0:14:06.720 the series two games to one. In the NBA, after 0:14:06.800 --> 0:14:09.760 the firing of head coach Steve Nash, the Nets lost 0:14:09.800 --> 0:14:12.119 to the Bowls one of eight ninety nine. The Warriors 0:14:12.240 --> 0:14:15.400 lost NHL, the Rangers won in overtime against the Flyers 0:14:15.760 --> 0:14:18.920 one Zip, the Islanders, Devils and Capitals all one, the 0:14:18.960 --> 0:14:22.280 Bruins one in OT six, five over the Penguins. Globals 0:14:22.320 --> 0:14:24.840 twenty four hours a day on air and on Bloomberg 0:14:24.920 --> 0:14:27.840 Quick Tank, powered by more than twenty seven journalists and 0:14:27.840 --> 0:14:31.080 analysts and more than one hundred twenty countries. I'm Michael Barr, 0:14:31.200 --> 0:14:35.120 and this is Bloomberg. Nathan, Michael. Thanks. It's five nineteen 0:14:35.160 --> 0:14:38.160 on Wall Street Live from the Bloomberg Interactive Brokers Studios. 0:14:38.200 --> 0:14:41.000 This is Bloomberg Daybreak. Good morning. I'm Nathan Haker. The 0:14:41.080 --> 0:14:43.800 heads of some of the world's top financial institutions are 0:14:43.840 --> 0:14:46.560 descending on Hong Kong this week for the Global Financial 0:14:46.640 --> 0:14:49.120 Investment Summit. It's an effort by the city to show 0:14:49.160 --> 0:14:52.840 it is still Asia's premier financial hub after a tumultuous 0:14:52.880 --> 0:14:56.880 few years. The CEO of HSBC, Noel Quinn, talked about 0:14:56.920 --> 0:14:59.840 Hong Kong and China with Bloomberg's Evon Men and d 0:15:00.040 --> 0:15:02.840 been in glaze, and he also talked about their economic prospect. 0:15:03.280 --> 0:15:05.320 What did you make of what happened inside and we 0:15:05.480 --> 0:15:07.680 know the messages that came through from policy makers in 0:15:07.720 --> 0:15:09.560 Hong Kong and alto me. And then China. Well, it's 0:15:09.560 --> 0:15:11.080 great to be back in Hong Kong. It's great to 0:15:11.080 --> 0:15:13.560 see colleagues from around the world back here in Hong Kong. 0:15:13.880 --> 0:15:19.360 It's my third visit this year, so thank you Quarantine Warrior, 0:15:19.600 --> 0:15:21.760 and it's good not to be in quarantine this time. 0:15:21.800 --> 0:15:23.560 And I think that's the story for Hong Kong. Hong 0:15:23.600 --> 0:15:25.800 Kong is now rebounding, is coming back out of the 0:15:25.880 --> 0:15:30.200 COVID problems. There's a very determined attitude from the government 0:15:30.280 --> 0:15:32.880 here to make sure Hong Kong can rebound, that the 0:15:32.960 --> 0:15:36.160 economy is open to the international community, and it's important 0:15:36.200 --> 0:15:38.760 for us, the international community to actually support Hong Kong 0:15:38.840 --> 0:15:41.320 on that journey. What do you think has been for 0:15:41.480 --> 0:15:43.760 you the biggest of it. You want to get away 0:15:43.800 --> 0:15:46.240 from this conference a hk may or even a government, 0:15:46.400 --> 0:15:48.880 what is your immediate Really very clear policy statements this 0:15:49.000 --> 0:15:52.720 morning from the Chief Executive on how he and the 0:15:52.800 --> 0:15:55.680 government and mainland want Hong Kong to be an international 0:15:55.760 --> 0:15:58.760 financial center, to remain as they've launched a number of 0:15:58.800 --> 0:16:00.680 policies to try and make sure all that Hong Kong 0:16:00.760 --> 0:16:04.200 remains open to the world. They've made determine progress on 0:16:04.400 --> 0:16:08.240 unlock in Hong Kong following COVID since the summer, and 0:16:08.320 --> 0:16:10.920 it's great to see that progress. More still to come. 0:16:11.200 --> 0:16:13.520 It's great to see it. And I think what we 0:16:13.680 --> 0:16:16.560 know is to do as institutions is support Hong Kong REBA. 0:16:17.280 --> 0:16:20.400 It's an important international financial center. I have absolutely no 0:16:20.560 --> 0:16:23.120 doubt it will remain as such for the long term. 0:16:23.280 --> 0:16:26.360 Does it mean more staff from as ME moving to 0:16:26.440 --> 0:16:28.840 Hong Kong. We're investing more in Asia and that's in 0:16:29.000 --> 0:16:31.960 Hong Kong. We're continuing to grow our business. I take 0:16:32.000 --> 0:16:34.880 our trade business. This year, it's up over fift of 0:16:34.960 --> 0:16:37.200 the half year, so that's that's the wing why it 0:16:37.320 --> 0:16:40.200 was up fifteen percent last year. We're continuing to invest 0:16:40.240 --> 0:16:42.720 in China and our wealth business in China, but I'm 0:16:42.760 --> 0:16:46.080 also invested in Singapore and India. I still see Asia 0:16:46.160 --> 0:16:48.880 as a strong platform for growth, connecting Asia to the 0:16:48.920 --> 0:16:50.360 rest of the world and the rest of the world 0:16:50.440 --> 0:16:53.640 to Asia. Do you think China just needs to adjust 0:16:53.720 --> 0:16:57.920 this cos policy just quickly. The governments to determine their 0:16:57.960 --> 0:17:00.720 COVID policy. And when I look at China, I look 0:17:00.760 --> 0:17:03.000 at China over the long term, and I think China 0:17:03.040 --> 0:17:05.960 will emerge from COVID as every other country in the 0:17:06.000 --> 0:17:09.000 world has done, it will be important economically to do 0:17:09.200 --> 0:17:12.760 so um and we'll be ready and willing to help 0:17:12.840 --> 0:17:15.439 them then rebound their economy. I think that's why we're 0:17:15.480 --> 0:17:17.639 seeing this this tremail and Chinese markets here right now. 0:17:17.760 --> 0:17:20.360 Is it purely based on what this whole reopening story 0:17:20.359 --> 0:17:22.479 are there are other matters too, I think there are. 0:17:23.160 --> 0:17:25.879 The COVID is a big story because with with a 0:17:26.000 --> 0:17:28.760 restriction in movement into an ARA of China, it's very 0:17:28.880 --> 0:17:32.560 hard for the international community to reconnect with the economy. 0:17:33.040 --> 0:17:36.119 But it will rebound and China will open up at 0:17:36.160 --> 0:17:39.760 some point in time. But I think it is important 0:17:39.800 --> 0:17:42.520 for the economy for China eventually to find a solution 0:17:42.640 --> 0:17:46.160 to the COVID strategy. But we're still trading well in China. 0:17:46.960 --> 0:17:49.240 Our trade into an ARA of China's up year on year, 0:17:49.440 --> 0:17:51.679 and we continue to invest in our wealth business. We've 0:17:51.720 --> 0:17:55.200 got over increased over one thousand, three hundred wealth managers 0:17:55.320 --> 0:17:58.240 in the Greater Bay Area focused on tapping into the 0:17:58.280 --> 0:18:01.680 mass affluent wealth opportunity China. We've continued to do that 0:18:01.920 --> 0:18:04.320 during COVID. Can you give us a number in terms 0:18:04.359 --> 0:18:06.720 of a staffing and headcount. How much do you do 0:18:06.840 --> 0:18:09.840 you want to see increase? That always said that we 0:18:09.920 --> 0:18:12.040 want to take our wealth managers in China to around 0:18:12.080 --> 0:18:15.359 three thousand over the near two mediums. So we're over 0:18:15.400 --> 0:18:18.159 a third of the way through that. Okay, how are 0:18:18.160 --> 0:18:21.120 you managing your exposure to the property market in China? 0:18:21.200 --> 0:18:25.159 Obviously we did see your provisions increase. Uh here in 0:18:25.359 --> 0:18:28.280 your latest earnings. Do you foresee a big spike in 0:18:28.400 --> 0:18:30.200 real estate losses in China? At what point does this 0:18:30.280 --> 0:18:32.600 damage your balance in anyways, the challenge sector at the 0:18:32.640 --> 0:18:36.080 moment is going through significant policy change, is going through 0:18:36.160 --> 0:18:39.480 significant adjustments as a as a sector, and I'm not 0:18:39.560 --> 0:18:42.000 going to in the state that we have provided well, 0:18:42.960 --> 0:18:46.480 we believe that it will take some time still before 0:18:46.600 --> 0:18:49.600 that sector stabilizes. But I'm encouraged by some of the 0:18:49.640 --> 0:18:52.840 policy changes that have been introduced recently to put liquidity 0:18:52.920 --> 0:18:57.120 back into that sector domestically um to complete the projects 0:18:57.200 --> 0:18:59.800 that need to be completed, and I'm hoping then that 0:19:00.080 --> 0:19:02.119 starts to stabilize the sector. But I think I just 0:19:02.200 --> 0:19:04.239 think it will still take some time before we can 0:19:04.280 --> 0:19:07.520 see the roots out of the current challenges on China. 0:19:09.040 --> 0:19:10.920 There now seems to be some uncertainty know what this 0:19:11.000 --> 0:19:13.800 new economic team, that changing team might put in place. 0:19:14.320 --> 0:19:18.480 Do you think everyone is overly pessimistic on China or 0:19:18.560 --> 0:19:20.600 is there something there? I thought. I can speak for 0:19:20.640 --> 0:19:23.679 myself and I'm still confident of the Chinese economy. They 0:19:23.720 --> 0:19:27.960 would emerge from COVID, they will stabilize following COVID, and 0:19:28.080 --> 0:19:31.160 there is strong economic growth potentially in China, and that's 0:19:31.200 --> 0:19:33.680 why we continue to invest in it. And that was 0:19:33.840 --> 0:19:37.520 hs DCS CEO Noel Quinn speaking with Bloomberg at the 0:19:37.560 --> 0:19:40.719 Global Financial Investment Summit. You can catch the full interview 0:19:40.800 --> 0:19:44.600 on Bloomberg dot com and on the Bloomberg terminal. Focus 0:19:44.720 --> 0:19:46.800 this morning, of course on the US economy and the 0:19:46.880 --> 0:19:50.600 FED decision. This afternoon, the press conference from Chairman J Powell. 0:19:50.760 --> 0:19:53.480 What will the Central Bank signal that the path of 0:19:53.560 --> 0:19:56.879 rate hikes ahead of it? Futures are moving just a 0:19:57.040 --> 0:19:59.560 touch higher now with S and P futures up two points, 0:19:59.800 --> 0:20:02.680 or our futures, NASTACK futures are higher by twelve. This 0:20:03.560 --> 0:20:09.720 is Bloomberg Bloomberg eleven three oh weather mostly sunny, upper 0:20:09.760 --> 0:20:11.520 sixties for highest today. We'll get down to the low 0:20:11.600 --> 0:20:14.560 fifties tonight, sunny, mid sixties tomorrow, and a mix of 0:20:14.600 --> 0:20:17.800 sun and cloud's upper sixties on Friday. Currently fifty eight 0:20:17.880 --> 0:20:24.960 degrees in Central Park. Broadcasting live from the Bloomberg Interactive 0:20:25.040 --> 0:20:28.880 Broker Studio in New York, Bloomberg E Living Freedom to Washington, 0:20:28.960 --> 0:20:32.800 d C, Bloomberg On to Boston, Bloomberg on All six 0:20:32.920 --> 0:20:36.080 one to San Francisco, Bloomberg Name sixty to the country, 0:20:36.200 --> 0:20:39.359 Sirius XM chto one nineteen and around the globe the 0:20:39.400 --> 0:20:43.280 Bloomberg Business at and Bloomberg Radio dot com. This is 0:20:43.320 --> 0:20:52.399 Bloomberg Daybreak and it's five thirty on Wall Street. Good morning, 0:20:52.480 --> 0:20:55.800 I'm Karen Moscow, I'm Nathan Hager. Bloomberg Daybreak is brought 0:20:55.840 --> 0:20:58.560 to you by SEI, built on advanced technologies and fifty 0:20:58.640 --> 0:21:02.000 years of innovation. SEI offers asset Managers are comprehensive and 0:21:02.080 --> 0:21:05.440 flexible operations outsourcing platform. Go to S E I C 0:21:05.720 --> 0:21:09.240 dot com slash Managers. And we're just about four hours 0:21:09.320 --> 0:21:11.440 away from the open of US trading. Let's get you 0:21:11.480 --> 0:21:12.800 have to date in the news you need to know 0:21:12.920 --> 0:21:15.480 at this hour. Well less in p futures are little 0:21:15.600 --> 0:21:19.359 change ahead of today's Federal Reserve decision. Consensus calls for 0:21:19.400 --> 0:21:22.439 the Central Bank to high grades by seventy five basis points. 0:21:22.680 --> 0:21:26.159 Ste Feld chief economist Lindsay Pexa says forward guidance for 0:21:26.240 --> 0:21:29.119 the FED will be very important. I do expect that 0:21:29.320 --> 0:21:32.040 given the backdrop of a five decade low in the 0:21:32.119 --> 0:21:35.200 unemployment rate and in your four decade high and inflation, 0:21:35.440 --> 0:21:39.040 the Fed will continue to revise higher expectations beyond what 0:21:39.160 --> 0:21:41.840 the market is anticipating in terms of that terminal rate. 0:21:41.920 --> 0:21:46.120 Come three, and that's Stifl's Lindsay Pexa. Stick with Bloomberg 0:21:46.240 --> 0:21:48.760 Radio and Television for a complete coverage of the FED, 0:21:49.119 --> 0:21:51.920