WEBVTT - Bloomberg Daybreak: October 10, 2022 - Hour 1 (Radio) 0:00:00.680 --> 0:00:04.439 Five from the Bloomberg Interactive Brooker Studios. Is this Bloomberg 0:00:04.519 --> 0:00:08.400 day Break for Monday, October ten two Coming up this hours, 0:00:08.560 --> 0:00:11.719 stocks tick lower following a volatile week on Wall Street. 0:00:11.760 --> 0:00:15.120 Investors await key inflation data and the kickoff of earning season. 0:00:15.200 --> 0:00:18.240 Good earning sends stocks even lower. We'll have the results 0:00:18.239 --> 0:00:21.520 of a Bloomberg cold and Rockets strike keif after Vladimir 0:00:21.520 --> 0:00:25.160 Putin blames Ukraine for targeting a crucial bridge to crimea 0:00:25.280 --> 0:00:27.760 shots rang out near the Long Island home of Republican 0:00:27.800 --> 0:00:31.320 Boolin atorial candidate Lee's Eldt, plus demonstrations growing the run 0:00:31.400 --> 0:00:34.920 involving the so called morality police on Michael barn More ahead, 0:00:35.000 --> 0:00:37.480 I'm down station in sports, the Mets season is over, 0:00:37.600 --> 0:00:40.160 shut out by the pad Rays of the decisive game 0:00:40.200 --> 0:00:45.400 three wins with the Giants and Jeff that's all's trading 0:00:45.400 --> 0:00:49.320 ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, 0:00:49.520 --> 0:00:54.200 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.480 --> 0:00:59.200 Bloomberg nine sixties and Francisco Sirius Exam one nineteen and 0:00:59.280 --> 0:01:02.040 around the world Old on Bloomberg Radio dot Com and 0:01:02.200 --> 0:01:09.319 via the Bloomberg Business. Good morning, I'm Nathan Hagar and 0:01:09.319 --> 0:01:12.399 I'm Karen Moscow, and US stock index futures are lower 0:01:12.480 --> 0:01:14.399 this morning. We are coming up to five out one 0:01:14.400 --> 0:01:16.360 on Wall Street, and we check the markets every fifteen 0:01:16.400 --> 0:01:18.880 minutes throughout the trading day on Bloomberg. Right now, U, 0:01:18.880 --> 0:01:21.480 S and P futures are down twenty one points. Now 0:01:21.680 --> 0:01:25.480 futures down one thirty three At nowsday futures down seventy six. 0:01:25.720 --> 0:01:28.240 The US bond market is closed today and observis of 0:01:28.240 --> 0:01:32.000 the Columbus Day or Indigenous People's Day holiday. NIMEX screwed 0:01:32.080 --> 0:01:34.520 oil is down night tens of percent. It's down eighty 0:01:34.520 --> 0:01:38.000 three cents at five cents of barrel, and Comex school 0:01:38.040 --> 0:01:40.320 down more than one per cent at down twenty one 0:01:40.360 --> 0:01:44.880 dollars at announced Nathan, we'll caring. The drop in futures 0:01:44.880 --> 0:01:47.120 follows a volatile week on Wall Street. The S and 0:01:47.160 --> 0:01:49.400 P five hundred began the week with its biggest two 0:01:49.480 --> 0:01:52.320 day rally since the onset of the pandemic, only to 0:01:52.440 --> 0:01:55.080 fall in the final three days, capped off by Friday's 0:01:55.120 --> 0:01:58.160 jobs report. Investors are now betting the Fed will continue 0:01:58.160 --> 0:02:02.200 it's aggressive hiking trail. Brian Jacobson is senior investment strategist 0:02:02.200 --> 0:02:05.320 at all Spring Global Investments. You know Ned Davis was 0:02:05.400 --> 0:02:08.799 famous for a lot of his wisdom, the trend is 0:02:08.840 --> 0:02:11.960 your friend, and don't fight the Fed. But now you 0:02:11.960 --> 0:02:14.519 can kind of paraphrase that by saying, don't fight the 0:02:14.639 --> 0:02:18.320 trend because the Fed isn't your friend and the trend, unfortunately, 0:02:18.480 --> 0:02:21.919 is towards weakness. All Spring Global Investments Brian Jacobson thinks 0:02:21.960 --> 0:02:25.200 the Fed will keep going with hawkish policy tightening. Well 0:02:25.240 --> 0:02:29.520 in Asia, Nathan Shares tumbled amid intensifying concern over rising 0:02:29.520 --> 0:02:32.760 global interest rates, and as Chinese investors returned from a 0:02:32.800 --> 0:02:36.440 week long holiday to tighter restrictions on American technology. We 0:02:36.520 --> 0:02:40.200 get the recap from Bloomberg's Juliet Sally in Singapore. Good Morning, 0:02:40.240 --> 0:02:42.600 Nathan and Karen. Chinese stokes fail on their return from 0:02:42.639 --> 0:02:45.239 the Golden Week holiday, hurt by a global equity sell 0:02:45.280 --> 0:02:49.000 off and blake holiday spending data that deepened concerns about 0:02:49.000 --> 0:02:51.840 the economic recovery. The cs I three hundred was trying 0:02:51.919 --> 0:02:55.400 at April twenty twenty. Lows Tech Stokes fell amid renewed 0:02:55.520 --> 0:02:58.720 Sino US tensions with the hang, saying Tech indexit January 0:02:58.720 --> 0:03:01.840 twenty nineteen lows, they'll show you one strengthened after the 0:03:01.840 --> 0:03:04.040 p BOC set are stronger. You want fixed. For a 0:03:04.120 --> 0:03:07.239 record twenty eight day, the ARSI dollar failed to April 0:03:07.280 --> 0:03:11.639 twenty lows. Markets in Japan, South Korea and Taiwan were closed. 0:03:11.919 --> 0:03:15.160 In Singapore, Julie at Sally Bloomberg daybreak. All right, Juliet, 0:03:15.200 --> 0:03:17.120 thanks and starts for following in Europe as well. To 0:03:17.120 --> 0:03:19.320 begin this week, let's go live to London and get 0:03:19.320 --> 0:03:22.639 the latest with Bloomberg's you in parts. Good morning, Good morning, 0:03:22.720 --> 0:03:25.360 Nathan and Karen a Gloomy started trading here in Europe 0:03:25.400 --> 0:03:27.600 as well, with every major stock markets in the red 0:03:27.639 --> 0:03:31.160 this morning. Consumer products, tech and utilities among the mixed 0:03:31.160 --> 0:03:34.119 bag of sectors for feeling the precious most so far. 0:03:34.560 --> 0:03:36.640 The Bank of England meanwhile, says it's stepping up its 0:03:36.640 --> 0:03:39.360 support for the UK bond market, which sold off after 0:03:39.400 --> 0:03:42.880 the government's disastrous mini budget statements. The Bank's aim is 0:03:42.880 --> 0:03:45.360 to provide longer term support for a wider range of 0:03:45.400 --> 0:03:47.880 securities over the coming weeks. In London, I'm you and 0:03:47.920 --> 0:03:50.320 parts Pinberg daybreak, All right, you and thank you. Back, 0:03:50.320 --> 0:03:53.440 you're in the u wear Salian's chief economic advisor, Muhammad 0:03:53.480 --> 0:03:56.680 hilaria And is continuing his criticism are the FAED. He 0:03:56.840 --> 0:03:59.080 is blaming the central Bank for what he calls the 0:03:59.280 --> 0:04:02.320 very high risk of our recession. Not only does it 0:04:02.400 --> 0:04:05.800 have to overcome inflation, but it has to withstore credibility. 0:04:05.880 --> 0:04:10.120 So yes, I fear that we with a very high 0:04:10.160 --> 0:04:14.200 probability of a damaging recession that was totally avoidable. Alan's 0:04:14.240 --> 0:04:17.720 chief economic advisor and Bloomberg contributor, Mohammed hilary And made 0:04:17.760 --> 0:04:20.600 the comments on CBS Face the Nation. Catch the program 0:04:20.680 --> 0:04:23.760 Sundays on Bloomberg Radio on the economic front this week 0:04:23.760 --> 0:04:25.919 here when we get minutes from the Fed September meeting 0:04:25.960 --> 0:04:28.800 as well as key ratings on inflation. The Producer Price 0:04:28.839 --> 0:04:32.200 Index comes out on Wednesday, followed by consumer prices Thursday. 0:04:32.600 --> 0:04:35.120 Earning season begins this week as well, and we get 0:04:35.120 --> 0:04:39.360 a preview from Bloomberg's Charlie Pellett. Banks including JP Morgan, Chase, 0:04:39.400 --> 0:04:42.640 City Group, Wells Fargo, and Morgan Stanley will be front 0:04:42.680 --> 0:04:45.960 and centator as companies report third quarter results amid a 0:04:46.160 --> 0:04:51.880 rising rate environment, higher energy costs, and geopolitical uncertainty. Jessica Biemers, 0:04:51.880 --> 0:04:57.040 portfolio manage at Easterly Investment Partners. I'm actually really excited 0:04:57.080 --> 0:05:00.080 to hear from companies because they are able to to 0:05:00.120 --> 0:05:03.240 really give us obviously some perhaps short term negatives, but 0:05:03.680 --> 0:05:06.000 long term guidance on how they plan to react to 0:05:06.000 --> 0:05:08.320 the current environment that tends to be a good thing 0:05:08.400 --> 0:05:10.920 for stocks. This week will also hear from black Rock, 0:05:10.960 --> 0:05:15.680 Delta Airlines, PepsiCo p n C, and United Health in 0:05:15.839 --> 0:05:18.800 New York Charlie Pellett, Bloomberg day Break. All right, Charlie, 0:05:18.839 --> 0:05:21.719 thank you well. Investors do not expect this earning season 0:05:21.760 --> 0:05:24.440 to be a pretty one. More than six responds to 0:05:24.480 --> 0:05:27.840 the latest Bloomberg and Live Paul's survey say this earning 0:05:27.880 --> 0:05:30.200 season will push the S and P five hundred index 0:05:30.279 --> 0:05:34.159 even lower. About half of pull participants also expect equity 0:05:34.240 --> 0:05:37.080 valuations to pull back even further from their average of 0:05:37.160 --> 0:05:39.760 the past decade. The strong dollar is also likely to 0:05:39.800 --> 0:05:42.360 be a headwin during this earning season, Karen. That's according 0:05:42.400 --> 0:05:47.440 to strategistic Goldman Sachs, who say US companies generate revenues overseas. 0:05:47.760 --> 0:05:51.360 The bank also says elevated inflation and high inventories pose 0:05:51.480 --> 0:05:55.599 risks to earnings and geo political news Nathan Kiev has 0:05:55.680 --> 0:05:58.960 been hit by explosions this morning, two days after an 0:05:59.000 --> 0:06:02.760 attack on a key bridge between Crimea and Russia. Ukrainian 0:06:02.760 --> 0:06:05.160 officials says at least eight people have been killed in 0:06:05.240 --> 0:06:09.360 another twenty four wounded in today's strikes. Russian President Vladimir 0:06:09.400 --> 0:06:12.240 Putin is blaming Ukraine for the bridge attack. He meets 0:06:12.240 --> 0:06:16.440 with a security council today. Ukrainian President vladimir's Alenski appeared 0:06:16.440 --> 0:06:18.640 to make a not so subtle mention of the bridge 0:06:18.680 --> 0:06:21.960 attack in his daily address. Today was a good and 0:06:22.040 --> 0:06:25.360 mostly sunny day on the territory of our state. Unfortunately 0:06:25.440 --> 0:06:29.320 it was cloudy in Crimea, although it is also warm. 0:06:29.360 --> 0:06:31.839 But no matter how cloudy it is, Ukrainians know what 0:06:31.960 --> 0:06:34.440 to do and they know that our future is sunny. 0:06:34.800 --> 0:06:38.919 Ukrainian President vladimir's Lenski spoke there through a translator. Onto 0:06:38.920 --> 0:06:42.560 another geopolitical flashpoint, Karen Taiwan says there will be no 0:06:42.680 --> 0:06:46.560 compromise on its sovereignty or democracy. That came hours after 0:06:46.640 --> 0:06:49.520 Elon Musk tweeted that the self rule of island should 0:06:49.520 --> 0:06:53.480 adopt a Hong Kong style governance model. China is hailing 0:06:53.520 --> 0:06:57.120 the idea, but Taiwan President Signing Wen says Beijing should 0:06:57.120 --> 0:07:00.240 not make any misjudgment on account of Taiwan's vig rist 0:07:00.279 --> 0:07:03.720 democratic system. And again, futures are lower this morning, s 0:07:03.760 --> 0:07:06.840 and P Future is down sixteen points. Now Future is 0:07:06.880 --> 0:07:10.840 down ninety four and nasdays futures are down sixties six 0:07:11.160 --> 0:07:14.000 nix screwed oil down half per cent, and straight ahead 0:07:14.040 --> 0:07:17.440 your latest local headlines plus a check of sports. And 0:07:17.760 --> 0:07:24.640 this is Bloomberg. Thanks Karen. Five oh seven on Wall 0:07:24.680 --> 0:07:26.920 Street fifty two degrees in Central Park. Already got an 0:07:26.960 --> 0:07:29.320 accident at westbound l A. It's at the lower level 0:07:29.360 --> 0:07:32.000 near the b que. Details coming up in traffic. First, 0:07:32.000 --> 0:07:33.920 Michael bar with what else is going on in New 0:07:33.960 --> 0:07:36.480 York and around the world. Good morning, Michael, Good morning, Nathan. 0:07:36.480 --> 0:07:39.200 Police say there is no apparent connection between the shooting 0:07:39.200 --> 0:07:42.920 outside Lee's Eldon's home in Shirley Long Island Sunday afternoon 0:07:43.240 --> 0:07:47.120 and the Republican nominee for New York governor. Investigators say 0:07:47.160 --> 0:07:50.120 two teenage boys tried to hide in this Elden's front 0:07:50.200 --> 0:07:54.360 porch after a drive my shooting. Zelden says His twin 0:07:54.360 --> 0:07:57.160 teenage daughters were home at the time, and when they 0:07:57.240 --> 0:07:59.880 heard the gunshots, they had locked themselves in the bathroom 0:07:59.920 --> 0:08:03.400 and called nine one one. Speaking to reporters outside his home, 0:08:03.480 --> 0:08:06.520 the New York congressman said the shooting is representative of 0:08:06.560 --> 0:08:09.880 a larger problem with society. At what point are we 0:08:09.920 --> 0:08:12.200 supposed to talk about the crime on our own streets. 0:08:12.560 --> 0:08:14.920 I'm standing in front of crime scene tape in front 0:08:14.920 --> 0:08:19.880 of my own house. You can't get me more outraged 0:08:19.920 --> 0:08:24.160 than right now. Zelden sends his security cameras photographed the people. 0:08:24.640 --> 0:08:28.280 The two people shot were taken to hospitals. More Republicans 0:08:28.320 --> 0:08:31.640 are pledging support for Herschel Walker, the Senate GOP candidate, 0:08:31.720 --> 0:08:34.600 and George is facing fall out over reports that he 0:08:34.640 --> 0:08:39.000 once paid for next girlfriend's abortion. The Republican Senatorial Committee 0:08:39.040 --> 0:08:42.000 chair at Senator Rick Scott, who campaign with Walker, who 0:08:42.080 --> 0:08:46.560 is a staunch anti abortion candidate. Democratic Senator Raphael Warnock 0:08:46.840 --> 0:08:48.960 holds a slight lead in the polls in the state, 0:08:49.559 --> 0:08:52.959 Violent anti government protests are intensifying and spreading. It a 0:08:53.040 --> 0:08:55.920 run sparked by anger over the killing of a woman 0:08:55.960 --> 0:08:59.040 who was arrested by the so called morality police and 0:08:59.080 --> 0:09:02.480 then dying in East custody. The protest started four weeks 0:09:02.480 --> 0:09:05.040 ago with the death of twenty two year old Masha 0:09:05.160 --> 0:09:09.400 Amini for allegedly wearing her head job improperly. One woman 0:09:09.440 --> 0:09:13.640 protesting in Iran's has enough is enough. Iran analysts Holly 0:09:13.760 --> 0:09:17.760 Dagru says, these demonstrations are extraordinary. They're changing death to 0:09:17.800 --> 0:09:21.480 the dictator, death to hominy. They're removing their head scarves. 0:09:21.480 --> 0:09:26.240 There's been viral videos of Iranian girls flipping the bird 0:09:26.600 --> 0:09:30.439 at the supreme meter of Iran's photo or stomping on 0:09:30.520 --> 0:09:35.240 his photo in classrooms. Panelist Holly Dogress. North Korean leader 0:09:35.320 --> 0:09:37.600 Kim John Un said he launched a new ballistic missile 0:09:37.640 --> 0:09:42.079 and simulated tactical nuclear strikes during recent military drills. It's 0:09:42.120 --> 0:09:44.360 a sign that North Korea is preparing for its first 0:09:44.400 --> 0:09:47.640 atomic test in five years. Global News twenty four hours 0:09:47.679 --> 0:09:50.280 a day on air end on Bloomberg Quicktake, powered by 0:09:50.280 --> 0:09:53.120 more than undred journalists and analysts more than a d 0:09:53.240 --> 0:09:56.560 twenty countries. Michael barn this is Bloombird, Nathan. Thank you. 0:09:56.600 --> 0:10:03.120 Michael five O nine on Wall Street time for the 0:10:03.160 --> 0:10:06.000 Bloomberg Sports up Take. Good morning, John Stanshower morning night. 0:10:06.080 --> 0:10:08.640 Then only one Mets team in their history won more 0:10:08.720 --> 0:10:11.920 games than this one. That was ES six, which also 0:10:12.000 --> 0:10:13.640 happens to be the last time the Mets won the 0:10:13.679 --> 0:10:15.679 World Series. This team won a hundred and one games, 0:10:15.679 --> 0:10:18.120 but that was not enough to even win the division, 0:10:18.120 --> 0:10:19.840 and a concern was that the Mets were now going 0:10:19.880 --> 0:10:22.640 to have to play a short, best of three wildcard 0:10:22.720 --> 0:10:24.880 series where they can run into some good pitching be 0:10:24.920 --> 0:10:28.200 out quickly, and that's exactly what happened the Padres. You 0:10:28.320 --> 0:10:30.600 Darvis shut him down in Game one, and Joe Musgrove 0:10:30.800 --> 0:10:33.520 was dominant in last night's Game three. In fact, his 0:10:33.559 --> 0:10:37.080 stat line seven scoreless stings only one hit allowed, the 0:10:37.160 --> 0:10:40.719 best in postseason history. In a winner takeoff games, San 0:10:40.760 --> 0:10:44.079 Diego won six nothing. Padres advanced to play the Dodgers 0:10:44.080 --> 0:10:46.120 the Yankees Game one with leeld at the stadium tomorrow night. 0:10:46.160 --> 0:10:48.960 Yanks had a mandatory workout last Friday or oldest Chapman 0:10:49.000 --> 0:10:51.400 did not show up. There was talk the Yanks we're 0:10:51.400 --> 0:10:53.360 not gonna put them on their playoff roster now they 0:10:53.360 --> 0:10:55.800 definitely won't. Chapman's gonna be a free agent, and safe 0:10:55.800 --> 0:10:58.600 to say his Yankee career was over. As for New 0:10:58.679 --> 0:11:01.360 York Football Jets for three two blew out in Miami 0:11:01.480 --> 0:11:03.880 forty to seventeen, their first home win, their first win 0:11:03.960 --> 0:11:06.840 within a division in three years. Rookie running back Brace 0:11:06.920 --> 0:11:09.320 Hall rush for ninety seven yards, also had a seventy 0:11:09.320 --> 0:11:12.000 non yards reception. The Giants are four and one. They 0:11:12.040 --> 0:11:15.520 went four and thirteen last season in London. They came 0:11:15.559 --> 0:11:18.520 from two touchdowns down against the Packers six twenty three 0:11:18.520 --> 0:11:21.800 to go, Kan tied to twenty first and Gold Giants 0:11:21.880 --> 0:11:26.319 at the two wildcat wildcat formation with Parkley and right Well. 0:11:26.400 --> 0:11:29.760 This time Jones lined up loud take one, takes the 0:11:29.800 --> 0:11:33.640 snaff sake one quartly put a touchdown PA. The Giants 0:11:33.640 --> 0:11:36.040 have to leave with six go w f A and 0:11:36.160 --> 0:11:38.400 Giants stands stopped green Bay on a late drive and 0:11:38.400 --> 0:11:41.000 one tent seven twenty two. Daniel Jones at least in 0:11:41.040 --> 0:11:43.880 the second half, I would play Aaron Rodgers, John stash 0:11:43.920 --> 0:11:47.200 Award Bloomberg Sports, Nathan all Right, John Thanks, SMP futures 0:11:47.200 --> 0:11:49.640 are down sixteen points right now, DAL futures are down 0:11:49.679 --> 0:11:52.720 ninety two. NSSECT futures are lower by sixty seven points. 0:11:52.960 --> 0:11:56.360 No bond trading today for the Columbus Day. Indigenous people 0:11:56.440 --> 0:11:59.440 stay holiday. We'll get more on this market next with 0:11:59.600 --> 0:12:04.640 Dennis Gardman, former publisher of the Gartment Letter. This is Bloomberg, 0:12:07.000 --> 0:12:09.800 Bloomberg eleven three oh weather. Mostly sunny today with highs 0:12:09.800 --> 0:12:12.400 in the upper six. He's plenty of sunshine tomorrow as well. 0:12:12.400 --> 0:12:15.720 We'll get up to near seventy Wednesday, partly sunny with 0:12:15.760 --> 0:12:18.320 a high near seventy degrees. Right now fifty two in 0:12:18.400 --> 0:12:25.160 Central Park markets. Headlines and breaking news twenty four hours 0:12:25.160 --> 0:12:28.120 a day at Bloomberg dot Com, the Bloomberg Business at 0:12:28.240 --> 0:12:37.520 and at Bloomberg Quick Take. He's a Bloomberg Business Flash 0:12:38.000 --> 0:12:41.200 and I'm Cameron. Moscow and European stocks are following Asian 0:12:41.280 --> 0:12:45.120 piers lower as concern over inflation, higher rates, and recession 0:12:45.160 --> 0:12:48.959 intensify before earning season kicks off. US stock index futures 0:12:48.960 --> 0:12:51.920 are also dropping. We check the markets every fifteen minutes 0:12:51.960 --> 0:12:54.160 throughout the trading day on Bloomberg. Right now is in 0:12:54.200 --> 0:12:58.200 P futures down fourteen points down, futures down seventy, NASDAG 0:12:58.280 --> 0:13:01.920 futures down fifty nine. The decks in Germany is moving higher. 0:13:01.920 --> 0:13:04.520 It's up about two tenths of upper cent. The US 0:13:04.559 --> 0:13:07.600 bond market is closed today in observance of Columbus Day 0:13:07.679 --> 0:13:10.960 or Indigenous People's Day. NIMEX screwed oil is down about 0:13:10.960 --> 0:13:13.000 seven tenths of upper cent or sixty three cents, and 0:13:13.080 --> 0:13:15.880 ninety two dollars four cents of barrel comex school there 0:13:15.920 --> 0:13:17.840 is down more than one per cent, or down eighteen 0:13:17.840 --> 0:13:22.079 dollars forty cents. A sixt announced the euro point nine 0:13:22.160 --> 0:13:24.480 seven oh six against the dollar, British pound one point 0:13:24.520 --> 0:13:27.160 one zero seven three, the n one forty five point 0:13:27.200 --> 0:13:29.840 four three, and look at a big coin. It's down 0:13:29.880 --> 0:13:33.319 one per cent in nineteen thousand, two hundred eighty dollars. 0:13:33.320 --> 0:13:35.880 That's a bloomberg business flash. Now here's Michael Barr with 0:13:35.920 --> 0:13:38.480 more on what's going on around the world. Muchael, Good morning, 0:13:38.559 --> 0:13:41.720 Good morning, care and several explosions were heard in Ukraine's 0:13:41.760 --> 0:13:45.280 capital Kiev today. It comes as Russian leader of Vladimir 0:13:45.320 --> 0:13:48.120 Putin will meet with his top security officials in Moscow 0:13:48.160 --> 0:13:52.280 today following the bombing of Europe's longest bridge linking annexed 0:13:52.360 --> 0:13:56.760 Crimea to the Russian mainland. North Korea has revealed its 0:13:56.800 --> 0:14:01.199 recent series of missile tests were tactical new lear weapon drills. 0:14:01.559 --> 0:14:05.040 According to North Korean state media, the country's seven missile 0:14:05.080 --> 0:14:10.040 tests across just two weeks were exercises to simulate nuclear 0:14:10.120 --> 0:14:13.520 strikes on South Korea. In baseball, the season is over 0:14:13.600 --> 0:14:15.880 for the Mats. They lost to the Padres six nothing 0:14:16.120 --> 0:14:19.160 in the deciding game three of their INNL Wild Card Series. 0:14:19.400 --> 0:14:22.240 And football, the Giants lost in London the Jets one, 0:14:22.320 --> 0:14:25.760 along with the Patriots Ravens and forty nine. The Commanders lost. 0:14:26.040 --> 0:14:28.720 Global dumes twenty four hours a day on air and 0:14:28.880 --> 0:14:31.920 on Bloomberg Quick Take, powered by more than twenty seven 0:14:31.960 --> 0:14:35.160 hundred journalist and analysts in more than a hundred twenty countries. 0:14:35.160 --> 0:14:37.720 How Michael Barr, this is Bloomberg, Nathan. Thanks Michael. It's 0:14:37.760 --> 0:14:40.800 five nineteen on Wall Street Live from the Bloomberg Interactive 0:14:40.800 --> 0:14:44.480 Bookers Studios. This is Bloomberg Daybreak, and we get the 0:14:44.520 --> 0:14:47.680 trading weeks started this morning with Dennis Gartman, former publisher 0:14:47.720 --> 0:14:49.960 of The Gartman Letter, now Chairman of the University of 0:14:50.000 --> 0:14:53.320 Akron Endowment Investment Committee, on a morning where the only 0:14:53.360 --> 0:14:57.360 asset really showing any signs of strength, Dennis, is the dollar. 0:14:57.840 --> 0:14:59.760 I think the last time we talked. You were saying 0:14:59.800 --> 0:15:02.480 you're thinking about going long stocks. Are you sticking with 0:15:02.520 --> 0:15:05.840 that call? Well, actually I said I would be a 0:15:05.920 --> 0:15:08.040 buyers stock just for a couple of days because we 0:15:08.320 --> 0:15:10.560 were due for a technical bounce. I've been very barish 0:15:10.600 --> 0:15:14.240 with stocks on non balance since January this year and 0:15:14.240 --> 0:15:17.960 haven't changed my opinion at all except we we get bounces, 0:15:18.040 --> 0:15:19.680 we get dead cat bounces, and we had a nice 0:15:19.800 --> 0:15:22.960 dead cat bounce early last week. It lasted less than 0:15:23.120 --> 0:15:26.560 forty eight hours, and the bear market continues at this point. 0:15:26.600 --> 0:15:30.440 So yes, I was bullish for about oh a day 0:15:30.480 --> 0:15:33.080 and a half at most, And all I said at 0:15:33.080 --> 0:15:35.240 the time was that if you if you had a bounce, 0:15:35.280 --> 0:15:37.160 which we've got, we got that bounce, you should use 0:15:37.200 --> 0:15:40.360 that bounce in which to become less involved in the market, reduced, 0:15:40.360 --> 0:15:42.960 to use that strength to reduce your long positions. And 0:15:43.000 --> 0:15:45.320 I think that that's been consistent since January five. The 0:15:45.320 --> 0:15:49.400 set is continuing to be monetarily tighter. That we've had 0:15:49.800 --> 0:15:52.240 years of monetary expansion. Now we're going to have years 0:15:52.240 --> 0:15:56.280 and beginning already years of monetary contraction as the FED 0:15:56.280 --> 0:15:58.840 reduces the size of this balance sheet. And if they're 0:15:58.840 --> 0:16:01.040 taking the fuel away that it's sponsor the bull market. 0:16:01.120 --> 0:16:03.320 So yes, for a day or two I had become 0:16:03.760 --> 0:16:07.240 slightly less barrish. I think I would call it that, 0:16:07.800 --> 0:16:11.160 not bullish at all. But and I was very succinct 0:16:11.240 --> 0:16:12.960 and saying, used the strength in the wish to sell 0:16:14.280 --> 0:16:17.920 years of monetary tightening from the federal Reserve. What does 0:16:17.960 --> 0:16:20.600 that look like? What does that mean to you? It 0:16:20.640 --> 0:16:23.320 means that the fuel that they had used to sponsor 0:16:23.360 --> 0:16:25.600 the bull market, the fuel that had they had used 0:16:25.960 --> 0:16:28.880 to sponsor strengthen the economy as they had added the 0:16:28.920 --> 0:16:30.920 size of their balance sheet, that had had taken its 0:16:31.160 --> 0:16:34.120 its assets from nine billion dollars to nine trillion dollars 0:16:34.120 --> 0:16:36.640 over the course of the last decade. They've got they 0:16:36.920 --> 0:16:39.800 have promised, and I think I believe they're promised, that 0:16:39.800 --> 0:16:41.760 they're going to reduce the size of that balance sheet 0:16:42.080 --> 0:16:46.040 by dollars a month as they allow old assets to 0:16:46.160 --> 0:16:49.400 roll off, to mature off. And in essence, the fuel 0:16:49.400 --> 0:16:51.440 has been taken away. There the foot that had been 0:16:51.440 --> 0:16:53.840 put on the on the on the gas pedal is 0:16:53.840 --> 0:16:55.520 now off and the foot is now on the brake 0:16:55.560 --> 0:16:57.960 pedal instead. And this is something that will last for 0:16:58.000 --> 0:17:00.360 several years, not for several weeks, not for some months, 0:17:00.360 --> 0:17:02.520 but for several years, perhaps even a decade or more. 0:17:02.920 --> 0:17:04.520 It had been a decade that they had added to 0:17:04.560 --> 0:17:06.520 their balance sheet. Now they're going to have a decade 0:17:06.520 --> 0:17:08.240 when they subtract from the size of the balance sheet. 0:17:08.280 --> 0:17:10.960 So the fuel that has sponsored things is being taken away, 0:17:11.080 --> 0:17:13.720 and that can only be deleterious to share prices. If 0:17:13.760 --> 0:17:16.840 you're saying that the federal state type for a decade 0:17:16.880 --> 0:17:18.720 or more. Are you talking just about the balance sheet? 0:17:18.720 --> 0:17:20.679 Are you talking about rate hikes as well? What does 0:17:20.720 --> 0:17:23.920 the rate path look like to you? The rate path 0:17:23.960 --> 0:17:25.879 continues to be upward. There they're going to take the 0:17:25.880 --> 0:17:28.520 Fed funds rate at least another seventy five basis points 0:17:28.520 --> 0:17:30.560 before the year, and I think that at the at 0:17:30.560 --> 0:17:33.320 the November meeting they'll take the overnight Fed Funds rate 0:17:33.359 --> 0:17:35.919 seventy five basis points then, and I believe that in 0:17:35.920 --> 0:17:37.760 the December meeting, which the Fed does not like to 0:17:37.800 --> 0:17:40.520 be Scrooge McDuck for the for Christmas, but at the 0:17:40.560 --> 0:17:42.720 December meeting, I think they'll also move the Fed funds 0:17:42.800 --> 0:17:45.280 rate by another fifty basis points. So I think an 0:17:45.280 --> 0:17:48.040 aggregate between now and the year end, the overnight said 0:17:48.040 --> 0:17:50.399 funds right moves up a hundred twenty five basis points, 0:17:50.800 --> 0:17:52.360 and I think that will probably get one or two 0:17:52.359 --> 0:17:54.359 more tightenings of the overnight FED funds rate in the 0:17:54.359 --> 0:17:56.520 first two or three meetings of the fol MC, meeting 0:17:56.720 --> 0:17:59.240 of the FLMC after the turn of the year. So 0:17:59.640 --> 0:18:02.800 on balance, FED funds are going higher on balance, the 0:18:02.800 --> 0:18:05.919 Fed's assets are going lower on balance. This is deleterious 0:18:05.920 --> 0:18:10.080 to share prices on balance, This is deleterious to the economy. Well, 0:18:10.119 --> 0:18:13.000 you get another read on inflation this week, producer prices 0:18:13.080 --> 0:18:15.880 and consumer prices. What's your call there? Does that move 0:18:15.920 --> 0:18:18.840 the Fed? I think you're gonna get a moderation in 0:18:18.880 --> 0:18:21.800 the in the numbers. We've had Crude oil prices, except 0:18:21.840 --> 0:18:23.560 for the past two weeks, have been under pressure for 0:18:23.560 --> 0:18:27.560 the past several months. Uh. The you had grain prices 0:18:27.560 --> 0:18:30.480 that had tumbled rather dramatically, taken a week from thirteen 0:18:30.520 --> 0:18:33.440 dollars a barrel down to eight bushel down to about 0:18:33.480 --> 0:18:35.680 seven dollars and fifty cents of bustel. But now even 0:18:35.760 --> 0:18:38.800 we weed is starting to rally back up. The livestock 0:18:38.840 --> 0:18:41.480 prices have fallen rather precipitously from their highs as grain 0:18:41.520 --> 0:18:44.399 prices had been under pressure, and so there will be 0:18:44.560 --> 0:18:46.960 some moderation in the CPI numbers this week, but I 0:18:46.960 --> 0:18:50.320 don't think it will be material in essence, and I 0:18:50.320 --> 0:18:53.240 think that the FED will will look past those numbers 0:18:53.240 --> 0:18:55.960 and be more concerned about the fact that that labor 0:18:56.040 --> 0:18:58.679 rates are high and labor prices are continuing to move higher. 0:18:58.720 --> 0:19:01.320 So you've had some commodit prices have been under pressure, 0:19:01.320 --> 0:19:03.920 but and that that may moderate the CPI number this week, 0:19:04.280 --> 0:19:06.760 but I don't think it'll be material. We're gonna continue 0:19:06.760 --> 0:19:10.040 this conversation with Dennis Gartman later on this hour, so 0:19:10.200 --> 0:19:13.399 stay with us here on Bloomberg Daybreak. Dennis Gartman, former 0:19:13.440 --> 0:19:16.200 publisher of The Gartman Letter, now chairman of the University 0:19:16.200 --> 0:19:19.320 of Akron Endowment Investment Committee, get his thoughts as well 0:19:19.359 --> 0:19:22.000 on the kickoff of earning season what that could potentially 0:19:22.040 --> 0:19:25.679 mean in an environment where the FED is continuing, possibly 0:19:25.880 --> 0:19:30.680 with continued monetary policy tightening. Looking ahead to the market 0:19:30.720 --> 0:19:34.080 open this morning, we see futures moving lower once again, 0:19:34.080 --> 0:19:37.800 with SMP futures down fourteen points down, futures down seventy one, 0:19:38.320 --> 0:19:42.040 Nasdaq futures are lower by sixty two points. No trading 0:19:42.119 --> 0:19:45.040 in the treasury market this morning. It is a federal holiday. 0:19:45.280 --> 0:19:47.760 Then i'm x crude is down six tenths percent at 0:19:47.840 --> 0:19:50.920 ninety two dollars nine cents of barrel Coomax gold down 0:19:51.080 --> 0:19:54.600 one and a quarter percent at seven fifty announced. The 0:19:54.640 --> 0:19:57.800 euro right now trading at point nine seven zero three 0:19:57.920 --> 0:20:01.080 against the dollar. Much more to come. You're listening to 0:20:01.160 --> 0:20:08.600 Bloomberg Day Bred Bloomberg eleven three oh weather. Sunshine in 0:20:08.680 --> 0:20:11.040 a high near seventy today. We'll get up to near 0:20:11.080 --> 0:20:15.359 seventy tomorrow and the next day as well, with sunshine prevailing. 0:20:15.840 --> 0:20:18.720 Right now, it's cloudy in Central Park and fifty two degrees. 0:20:21.960 --> 0:20:26.520 Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.640 --> 0:20:30.560 Bloomberg Elving Freedom to Washington, d C, Bloomberg N one 0:20:30.680 --> 0:20:33.920 to Boston, Bloomberg one O six one to San Francisco, 0:20:34.000 --> 0:20:37.200 Bloomberg N sixty to the Country, Sirius XM to the 0:20:37.280 --> 0:20:40.600 one nineteen and around the globe, the Bloomberg Business and 0:20:40.720 --> 0:20:50.480 Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five 0:20:50.480 --> 0:20:53.119 thirty on Wall Street. Good morning, I'm Nathan Hagar and 0:20:53.160 --> 0:20:56.160 I'm Karen Moscow. We're just about four hours away from 0:20:56.160 --> 0:20:57.920 the open of US trading. Let's get you up to 0:20:58.000 --> 0:20:59.680 date on the news you need to know at this hour. 0:20:59.840 --> 0:21:02.520 The up in futures follows a volatile week on Wall 0:21:02.560 --> 0:21:05.879 Street that ended with a three days skid. Brian Jacobson, 0:21:06.040 --> 0:21:09.560 senior investment strategist at all Spring Global Investments, saying that 0:21:09.600 --> 0:21:13.160 investors are betting the feder Reserve will continue it's aggressive 0:21:13.240 --> 0:21:16.439 hiking trail. I think the Fed pivot that's not going 0:21:16.520 --> 0:21:18.840 to happen until they take the blinders off right, and 0:21:18.880 --> 0:21:21.560 I don't think that they really want to even contemplate 0:21:22.320 --> 0:21:24.159 changing their tune until they get the four and a 0:21:24.160 --> 0:21:27.800