1 00:00:03,000 --> 00:00:06,240 Speaker 1: Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg 2 00:00:06,320 --> 00:00:10,240 Speaker 1: day Break for Friday, October fourteen two. Coming up the Shower, 3 00:00:10,560 --> 00:00:14,440 Speaker 1: Stocks Rise. Following the historic rally on Wall Street Banker 4 00:00:14,560 --> 00:00:18,120 Speaker 1: Niece kick off this morning, Speculation grows the UK government 5 00:00:18,120 --> 00:00:21,480 Speaker 1: will abandon its tax cut plan, and Twitter says Elon 6 00:00:21,560 --> 00:00:25,520 Speaker 1: Musk is being investigated over his attempted acquisition. The January 7 00:00:25,640 --> 00:00:28,800 Speaker 1: six Panel has voted to subpoena former President Trump lost. 8 00:00:28,880 --> 00:00:31,600 Speaker 1: The shooting in the Raleigh, North Carolina neighborhood has left 9 00:00:31,680 --> 00:00:35,760 Speaker 1: five dead. I'm Michael blomer More, I'm John Stashower and sports. 10 00:00:35,760 --> 00:00:38,400 Speaker 1: The Yankees and Guardians played name two this afternoon. Either 11 00:00:38,479 --> 00:00:40,920 Speaker 1: went for the Astros, the Rangers one the Devil's in 12 00:00:41,000 --> 00:00:47,400 Speaker 1: Islanders Laws. That's all Train ahead on Bloomberg Daybreak on 13 00:00:47,520 --> 00:00:51,640 Speaker 1: Bloomberg eleven three, on New York, Bloomberg ninety nine one, Washington, 14 00:00:51,720 --> 00:00:55,360 Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine 15 00:00:55,400 --> 00:00:59,240 Speaker 1: sixties and Francisco Syrius x M one nine team and 16 00:00:59,280 --> 00:01:02,040 Speaker 1: around the world Old on Bloomberg Radio dot Com and 17 00:01:02,240 --> 00:01:08,919 Speaker 1: via The Bloomberg business Man. Good morning, I'm Nathan Hagar, 18 00:01:09,200 --> 00:01:12,080 Speaker 1: and I'm Karen Moscow US Dock Index futures are lower 19 00:01:12,120 --> 00:01:15,080 Speaker 1: this morning, with SMP future is down sixteen points down, 20 00:01:15,120 --> 00:01:18,240 Speaker 1: futures down a hundred two, NASDAG futures down seventy seven. 21 00:01:18,440 --> 00:01:21,040 Speaker 1: The decks in Germany is up six tents of percent. 22 00:01:21,280 --> 00:01:23,959 Speaker 1: Ten year Treasury up seven thirties seconds. You're three point 23 00:01:24,000 --> 00:01:26,480 Speaker 1: nine one percent and a yield on the two year 24 00:01:26,600 --> 00:01:30,160 Speaker 1: four point four two percent. Nimex screwde oil is down 25 00:01:30,240 --> 00:01:33,000 Speaker 1: three quarters of a percent. It's at eighty eight dollars 26 00:01:33,080 --> 00:01:35,640 Speaker 1: forty two cents a barrel. Nathan Karen, We enter this 27 00:01:35,720 --> 00:01:38,160 Speaker 1: final trading day of the week coming off a truly 28 00:01:38,240 --> 00:01:41,320 Speaker 1: historic day. After falling two point four percent, the SMP 29 00:01:41,440 --> 00:01:44,880 Speaker 1: five hundred reversed course and closed up two point six 30 00:01:44,920 --> 00:01:48,880 Speaker 1: percent according to Bloomberg data, going back to never before 31 00:01:49,040 --> 00:01:52,640 Speaker 1: as the market experienced such extreme readings in both directions 32 00:01:52,640 --> 00:01:55,440 Speaker 1: in one day. Dave don Obedient, as chief investment officer 33 00:01:55,640 --> 00:01:58,480 Speaker 1: at CIBC Private Wealth, Yeah, I don't think a day 34 00:01:58,520 --> 00:02:01,680 Speaker 1: like this signifies a much at bottom. Obviously, we had 35 00:02:01,760 --> 00:02:04,680 Speaker 1: a really strong market from mid June to mid August 36 00:02:04,720 --> 00:02:07,480 Speaker 1: and it was just a bear market rally. But um, yeah, 37 00:02:07,520 --> 00:02:10,040 Speaker 1: I think we're certainly closer to the end than the 38 00:02:10,040 --> 00:02:12,560 Speaker 1: beginning of this bowl. Market Dave down Obedien at c 39 00:02:12,680 --> 00:02:17,200 Speaker 1: IBC believes triggered automated buying helped fuel yesterday's turnaround, but 40 00:02:17,240 --> 00:02:20,400 Speaker 1: the turnaround maybe short lived. Nathan Bank of America says 41 00:02:20,400 --> 00:02:23,200 Speaker 1: stock markets in the US economy will have to experience 42 00:02:23,320 --> 00:02:26,519 Speaker 1: more pain before the Fed pivots away from aggressive policy. 43 00:02:26,760 --> 00:02:29,280 Speaker 1: Strategist at the Bank's sake quote, it was a decent 44 00:02:29,360 --> 00:02:32,680 Speaker 1: counter rally, but Low's won't be reached until next year. 45 00:02:32,800 --> 00:02:35,600 Speaker 1: They say more economic and market pain will be necessary 46 00:02:35,639 --> 00:02:38,240 Speaker 1: before the Fed backs down. Well, Karen, the White House 47 00:02:38,280 --> 00:02:41,600 Speaker 1: was grasping for upside after yesterday's inflation report that's core 48 00:02:41,680 --> 00:02:45,639 Speaker 1: CPI rise to a forty year high. President Biden discussed 49 00:02:45,639 --> 00:02:49,200 Speaker 1: the reading with reporters in Los Angeles. Americans are squeezed 50 00:02:49,240 --> 00:02:51,639 Speaker 1: by the cost of living. It's been true for years, 51 00:02:51,639 --> 00:02:53,880 Speaker 1: and folks don't need to be a report to fell 52 00:02:53,919 --> 00:02:56,480 Speaker 1: them and be a squeeze. Fighting this battle every day 53 00:02:56,560 --> 00:02:59,600 Speaker 1: is the key reason why I ran for president United States. However, 54 00:02:59,680 --> 00:03:02,440 Speaker 1: President and Inviiden did note overall inflation was just two 55 00:03:02,440 --> 00:03:04,839 Speaker 1: percent over the last three months. He said, quote that's 56 00:03:04,880 --> 00:03:07,960 Speaker 1: down from eleven percent over the prior three months. Well 57 00:03:08,000 --> 00:03:10,560 Speaker 1: over the weekend, Nathan the President conceded that a slight 58 00:03:10,639 --> 00:03:14,680 Speaker 1: recession is possible, but one administration official notes that it's 59 00:03:14,840 --> 00:03:18,560 Speaker 1: not inevitable. We spoke to US Commerce Secretary Gina Ramondo. 60 00:03:19,000 --> 00:03:21,720 Speaker 1: I talked to CEOs of the biggest companies and the 61 00:03:21,760 --> 00:03:26,840 Speaker 1: smallest companies every day in every industry. Yes, they're anxious. 62 00:03:26,880 --> 00:03:31,519 Speaker 1: Global markets are unstable. The war in Ukraine obviously makes 63 00:03:31,600 --> 00:03:35,960 Speaker 1: everything unstable. But they're also telling me customers are buying. 64 00:03:36,080 --> 00:03:40,680 Speaker 1: Consumers are buying, they are still hiring, American companies are innovating. 65 00:03:41,000 --> 00:03:43,960 Speaker 1: Commerce Secretary Gena Raimondo made the comments and an interview 66 00:03:43,960 --> 00:03:47,720 Speaker 1: on Bloomberg Radio and television. Catch the full conversation online 67 00:03:47,760 --> 00:03:50,560 Speaker 1: at Bloomberg dot com. No one of those CEOs does 68 00:03:50,600 --> 00:03:52,680 Speaker 1: appear to have a more tepid outlook on the economy. 69 00:03:52,760 --> 00:03:56,800 Speaker 1: Karen JP Morgan Chase CEO Jamie Diamond discussed inflation and 70 00:03:56,840 --> 00:03:59,400 Speaker 1: the FED at a conference in Washington yesterday. I don't 71 00:03:59,400 --> 00:04:01,720 Speaker 1: know if he could be a soft landing. I don't 72 00:04:01,760 --> 00:04:05,520 Speaker 1: think so. But in my mild recession or tough recession. 73 00:04:06,360 --> 00:04:09,840 Speaker 1: My point in the tough recession, yeah, you expect the market. 74 00:04:10,520 --> 00:04:13,200 Speaker 1: I'm not gonna keep eyes across those three things. But 75 00:04:13,760 --> 00:04:15,560 Speaker 1: for all of us who have to worry about risk, you, 76 00:04:15,680 --> 00:04:17,919 Speaker 1: of course you should plant for those things. Jamie Diamond 77 00:04:17,960 --> 00:04:20,240 Speaker 1: says his gut tells him the Federal Reserve will have 78 00:04:20,279 --> 00:04:22,520 Speaker 1: to raise rates higher than four and a half percent 79 00:04:22,560 --> 00:04:25,760 Speaker 1: in order to detain inflation. Well. Nathan Diamond's bank is 80 00:04:25,800 --> 00:04:28,719 Speaker 1: among several schedule to kick off earning season today, and 81 00:04:28,760 --> 00:04:32,080 Speaker 1: we get a preview from Bloomberg's Jeff Bellinger. By the 82 00:04:32,120 --> 00:04:34,919 Speaker 1: time the markets opened this morning, investors will have heard 83 00:04:34,920 --> 00:04:38,840 Speaker 1: from JP Morgan, Chase, City Group, Morgan Stanley, and Wells Fargo. 84 00:04:39,160 --> 00:04:42,480 Speaker 1: Investors will be interested in the results from the last quarter, 85 00:04:42,600 --> 00:04:45,120 Speaker 1: but they'll likely be even more interested to hear what 86 00:04:45,200 --> 00:04:49,480 Speaker 1: banking executives expect going forward. Bloomberg says the big banks 87 00:04:49,480 --> 00:04:52,679 Speaker 1: will announce they're setting aside billions of dollars to protect 88 00:04:52,720 --> 00:04:56,480 Speaker 1: against expected loan losses as growing numbers of customers get 89 00:04:56,520 --> 00:05:00,279 Speaker 1: squeezed by inflation and high interest rates. Jeff well Inger, 90 00:05:00,440 --> 00:05:03,720 Speaker 1: Bloomberg Daybreak, Thanks Jeff. We also get more economic data 91 00:05:03,839 --> 00:05:07,200 Speaker 1: this morning in the form of retail sales and consumer sentiment, 92 00:05:07,360 --> 00:05:09,880 Speaker 1: with more on that is Bloomberg's Inney del Judais. The 93 00:05:09,920 --> 00:05:13,840 Speaker 1: prior report covering August showed US retail sales rebounded from 94 00:05:13,839 --> 00:05:17,320 Speaker 1: the July slump. Bloomberg Economics as today's data will most 95 00:05:17,360 --> 00:05:20,880 Speaker 1: likely indicates spending on consumer goods move toward pre pandemic 96 00:05:21,000 --> 00:05:25,480 Speaker 1: levels in September. That's taking inflation into account. Also today, 97 00:05:25,520 --> 00:05:28,720 Speaker 1: the University of Michigan issues it's US consumer Sentiment and 98 00:05:28,880 --> 00:05:33,200 Speaker 1: next for early October, and Bloomberg Economics anticipates another sluggish reading. 99 00:05:33,560 --> 00:05:36,320 Speaker 1: The sentiment index set a record low earlier in the year. 100 00:05:36,560 --> 00:05:39,400 Speaker 1: We eat Dealt Judas Bloomberg daybreak right, Benny, thank you. 101 00:05:39,440 --> 00:05:42,359 Speaker 1: In Europe this morning, speculation is growing the UK government 102 00:05:42,400 --> 00:05:45,360 Speaker 1: will abandon its plans for massive tax cuts. And let's 103 00:05:45,360 --> 00:05:47,560 Speaker 1: go live to London and get the latest from Bloomberg's 104 00:05:47,640 --> 00:05:51,320 Speaker 1: James Wilcock, Good morning, James, Good morning Kowen. Nathan Decas 105 00:05:51,360 --> 00:05:54,240 Speaker 1: Chancellor quasi class said to London, London in the next hour, 106 00:05:54,600 --> 00:05:57,440 Speaker 1: un especially cut in short his trip to Washington, UK 107 00:05:57,520 --> 00:05:59,400 Speaker 1: ask that's the stage a comeback on the news. It's 108 00:05:59,400 --> 00:06:01,440 Speaker 1: try to act a youth sound is down the right. 109 00:06:01,720 --> 00:06:04,039 Speaker 1: The yield Antenia bonds pledged to be a full presentment 110 00:06:04,040 --> 00:06:05,719 Speaker 1: of the market opens and it all comes as the 111 00:06:05,720 --> 00:06:08,640 Speaker 1: Bank of England to rap up their emergency bond buying program. 112 00:06:08,760 --> 00:06:12,080 Speaker 1: Late today in London, James Wilcock, Bloomberg day Break, James, 113 00:06:12,080 --> 00:06:14,120 Speaker 1: thank you, And in Corporate News this morning, lawyers for 114 00:06:14,160 --> 00:06:17,680 Speaker 1: Twitter say Elon Musk is being investigated by authorities over 115 00:06:17,760 --> 00:06:20,280 Speaker 1: his attempt to take Twitter private. We get the details 116 00:06:20,279 --> 00:06:23,680 Speaker 1: from Bloomberg's Doug Prisoner. In April, the SEC sent a 117 00:06:23,760 --> 00:06:26,880 Speaker 1: query to Musk over how he initially disclosed his nine 118 00:06:26,880 --> 00:06:29,680 Speaker 1: percent stake in Twitter. He did so a week later 119 00:06:29,760 --> 00:06:33,280 Speaker 1: than regulations allow, and he used a filing typically reserved 120 00:06:33,320 --> 00:06:37,120 Speaker 1: for passive investors. Then in June, the SEC wanted information 121 00:06:37,160 --> 00:06:40,240 Speaker 1: on Musk tweeting the deal cannot move forward until he 122 00:06:40,279 --> 00:06:44,120 Speaker 1: was given more information about spam and fraudulent accounts. Now 123 00:06:44,160 --> 00:06:47,240 Speaker 1: in a court filing in Delaware, Twitter's lawyers say Musk 124 00:06:47,320 --> 00:06:51,960 Speaker 1: has exchanged substantive correspondence with federal authorities as they look 125 00:06:52,000 --> 00:06:54,919 Speaker 1: into his conduct, and they say, this game of hide 126 00:06:54,920 --> 00:06:57,400 Speaker 1: the ball must end. In New York, I'm Doug Prisner, 127 00:06:57,440 --> 00:07:00,240 Speaker 1: Bloomberg day Break, Right, thank you, and Bloomberg Gay Break 128 00:07:00,320 --> 00:07:03,040 Speaker 1: is brought to you by SEI. Acid managers don't get 129 00:07:03,120 --> 00:07:05,320 Speaker 1: results that are off the charts when their solutions are 130 00:07:05,360 --> 00:07:08,400 Speaker 1: off the shelf. Learn how SEI is operating platform canern 131 00:07:08,480 --> 00:07:12,240 Speaker 1: infrastructure into a competitive advantage at se i C dot com, 132 00:07:12,360 --> 00:07:15,440 Speaker 1: slash Tech Straight to head, your latest local headlines, plus 133 00:07:15,440 --> 00:07:23,720 Speaker 1: a check of sports, and this is Bloomberg. All right, Karen, 134 00:07:23,760 --> 00:07:25,680 Speaker 1: thanks a lot. It is five oh seven on Wall 135 00:07:25,680 --> 00:07:28,160 Speaker 1: Street where fifty three degrees in Central Park and dealing 136 00:07:28,160 --> 00:07:31,320 Speaker 1: with an accident in Queen's westbound Jackie Robinson Parkway at 137 00:07:31,360 --> 00:07:35,040 Speaker 1: Metropolitan Avenue. Details coming up in traffic. First Michael Barr 138 00:07:35,080 --> 00:07:36,880 Speaker 1: with more on what's going on in New York and 139 00:07:36,960 --> 00:07:40,480 Speaker 1: around the world. Happy Friday, Michael, Happy Friday to you, Nathan. 140 00:07:40,600 --> 00:07:44,520 Speaker 1: The final January six Committee hearing's theme was that Donald 141 00:07:44,520 --> 00:07:47,760 Speaker 1: Trump began the plan to stay in office as early 142 00:07:47,800 --> 00:07:52,240 Speaker 1: as July Bloomberg, said Baxter, as the story to remain 143 00:07:52,440 --> 00:07:55,160 Speaker 1: no matter what the vote showed in November. Coach are 144 00:07:55,240 --> 00:07:58,720 Speaker 1: List Cheney says, what's left we must seek the testimony 145 00:07:58,920 --> 00:08:03,880 Speaker 1: under oath of January six Central player Donald Trump, followed 146 00:08:03,880 --> 00:08:07,120 Speaker 1: by a unanimous vote to subpoena from the committee. Meanwhile, 147 00:08:07,120 --> 00:08:09,600 Speaker 1: the Supreme Court has refused to get involved in Trump's 148 00:08:09,600 --> 00:08:13,640 Speaker 1: request to return seized documents from our lago. It also 149 00:08:13,680 --> 00:08:17,440 Speaker 1: refused to reinstate a special master. A major victory for 150 00:08:17,560 --> 00:08:20,920 Speaker 1: the Department of Justice in San Francisco. I'm at Baxter, 151 00:08:20,920 --> 00:08:26,119 Speaker 1: Bloomberg Daybreak ed Baxter. Connecticut Governor Need Lamont has ordered 152 00:08:26,120 --> 00:08:28,840 Speaker 1: flags flown at half staff in the state after three 153 00:08:28,880 --> 00:08:31,760 Speaker 1: officers were shot in the line of duty in Bristol. 154 00:08:32,120 --> 00:08:36,160 Speaker 1: Two of the officers are dead. Governor Lamont said there 155 00:08:36,200 --> 00:08:39,560 Speaker 1: are too many illegal guns and not enough cops on 156 00:08:39,600 --> 00:08:44,000 Speaker 1: the streets. I hope when you see your policeman woman 157 00:08:44,320 --> 00:08:45,880 Speaker 1: on the street corner, you go up and say thank 158 00:08:45,920 --> 00:08:47,719 Speaker 1: you for what you do. I hope you show a 159 00:08:47,760 --> 00:08:51,880 Speaker 1: little respect for the folks that are there. Governor Lamont. 160 00:08:52,160 --> 00:08:54,480 Speaker 1: State Police said in a release that the nine one 161 00:08:54,640 --> 00:08:57,880 Speaker 1: one call Wednesday night about the dispute between two siblings 162 00:08:58,200 --> 00:09:01,000 Speaker 1: appears to have been a deliberate act lower law enforcement 163 00:09:01,080 --> 00:09:04,800 Speaker 1: to the scene in Bristol. In North Carolina, Raleigh police 164 00:09:04,840 --> 00:09:08,160 Speaker 1: say a male juvenile is in custody hours after a 165 00:09:08,240 --> 00:09:11,080 Speaker 1: mass shooting that left five people dead, including an off 166 00:09:11,160 --> 00:09:15,320 Speaker 1: duty police officer, in the neighborhood. Raleigh Mayor Maryanne Baldwin 167 00:09:15,400 --> 00:09:18,480 Speaker 1: praise the responding officers, saying they put their lives at 168 00:09:18,480 --> 00:09:21,840 Speaker 1: a risk to protect the city. You know, you pray 169 00:09:21,960 --> 00:09:25,960 Speaker 1: that something like this will never happen here. It did, 170 00:09:26,840 --> 00:09:31,040 Speaker 1: and I want to thank all the officers who responded 171 00:09:31,400 --> 00:09:34,920 Speaker 1: in the way they did. Raleigh Mayor Baldwin. Police say 172 00:09:34,960 --> 00:09:37,800 Speaker 1: there is no word on a motive. North Korea has 173 00:09:37,800 --> 00:09:40,960 Speaker 1: fired yet another ballistic missile. This launch came as North 174 00:09:41,040 --> 00:09:44,520 Speaker 1: Korea also flew war planes near the border with South Korea. 175 00:09:45,080 --> 00:09:47,520 Speaker 1: Global News twenty four hours a day on air and 176 00:09:47,679 --> 00:09:52,079 Speaker 1: on Bloomberg Quicktake, powered by more than journalists and analyst 177 00:09:52,160 --> 00:09:56,200 Speaker 1: more than a hundred twenty countries. Michael Varren, this is Bloomberg, Nathan. 178 00:09:56,200 --> 00:10:02,920 Speaker 1: Thanks Michael five o nine on Wall Street. Time for 179 00:10:02,920 --> 00:10:05,480 Speaker 1: the Bloomberg Sports Update. Good morning, John Stashow, All right, 180 00:10:05,520 --> 00:10:08,640 Speaker 1: good morning, Nathan. Yankees and Guardians. Two days off between 181 00:10:08,679 --> 00:10:10,720 Speaker 1: games one and two, but set to go one o'clock 182 00:10:10,760 --> 00:10:13,360 Speaker 1: at the stadium, so unless there's another rain out, no 183 00:10:13,520 --> 00:10:16,200 Speaker 1: more days off. The rain was expected and Aaron Bruin 184 00:10:16,320 --> 00:10:19,160 Speaker 1: was asked before and the effect of a postponement, and 185 00:10:19,200 --> 00:10:21,559 Speaker 1: it would probably affect the pitching rotation if you went 186 00:10:21,720 --> 00:10:24,320 Speaker 1: five games and you had to play four in a row. Sure, 187 00:10:25,040 --> 00:10:30,280 Speaker 1: Um the lineup, No, I mean we play, that's what 188 00:10:30,360 --> 00:10:32,640 Speaker 1: you do is in baseball as you play every day, 189 00:10:32,679 --> 00:10:37,680 Speaker 1: So shouldn't affect that. Um, you know, that's more who 190 00:10:37,679 --> 00:10:40,640 Speaker 1: we're going up against, matchups things like that. Today starts, 191 00:10:40,720 --> 00:10:43,840 Speaker 1: yes the court Shane Bieber for Cleveland. Houston's up to nothing. 192 00:10:43,880 --> 00:10:45,760 Speaker 1: In the other a l d S, the Astros had 193 00:10:45,760 --> 00:10:47,800 Speaker 1: their slugger You're Don Alvarez to fact you get the 194 00:10:47,800 --> 00:10:50,240 Speaker 1: game winning three run over in game one, he hit 195 00:10:50,280 --> 00:10:52,560 Speaker 1: the go ahead two run shots six, inning the game 196 00:10:52,600 --> 00:10:55,760 Speaker 1: to a four two Astros win over Seattle two game threes. 197 00:10:55,840 --> 00:10:58,600 Speaker 1: Today tonight in the n LDS, both series tied to one. 198 00:10:58,640 --> 00:11:02,480 Speaker 1: Week six underway in Chicago, Washington won twelve to seven 199 00:11:02,559 --> 00:11:05,360 Speaker 1: and to four game losings. The only Commander's touchdown scored 200 00:11:05,360 --> 00:11:08,200 Speaker 1: by rookie running back Brian Robinson, who has made a 201 00:11:08,240 --> 00:11:11,280 Speaker 1: remarkable comeback. In August, he was shot twice in the 202 00:11:11,440 --> 00:11:14,840 Speaker 1: leg in attempted robbery in DC. Jetson Giants looked to 203 00:11:14,880 --> 00:11:17,040 Speaker 1: keep their winning ways going Sunday to Jets visit Green 204 00:11:17,080 --> 00:11:20,520 Speaker 1: Bay Giants home for Baltimore and the Giants punter is 205 00:11:20,600 --> 00:11:24,120 Speaker 1: back home safety. The native Scott Jamie Gillen was unable 206 00:11:24,160 --> 00:11:26,480 Speaker 1: to fly home with the team do a visa issue. 207 00:11:26,960 --> 00:11:30,400 Speaker 1: He was staying at an airbnb in London. Rangers already 208 00:11:30,400 --> 00:11:32,800 Speaker 1: two and oh they wont seven three at Minnesota. Chris Cryer, 209 00:11:32,840 --> 00:11:34,840 Speaker 1: the big season last year, scored his first two of 210 00:11:34,840 --> 00:11:37,600 Speaker 1: the year, the first and last Ranger goals Islander season 211 00:11:37,640 --> 00:11:40,280 Speaker 1: opener three one Home lost the Floorida. The Devil's lost 212 00:11:40,320 --> 00:11:44,680 Speaker 1: five to a Philadelphia John Stashward, Bloomberg Sports, Nathan all Right, John, 213 00:11:44,720 --> 00:11:48,000 Speaker 1: thank you. SMP. Futures are moving lower down thirteen points down. 214 00:11:48,080 --> 00:11:51,679 Speaker 1: Futures down, nastack. Futures down sixty two points ten. Your 215 00:11:51,720 --> 00:11:55,880 Speaker 1: treasuries up six thirty seconds yield three point nine one percent. 216 00:11:56,120 --> 00:11:59,920 Speaker 1: As we await bank earnings this morning, we'll get a 217 00:12:00,000 --> 00:12:07,920 Speaker 1: preview next with Bloomberg. Shinali Bassk. This is Bloomberg, Bloomberg 218 00:12:07,920 --> 00:12:10,080 Speaker 1: eleven three oh. Weather. Rain will end this morning, It'll 219 00:12:10,120 --> 00:12:13,360 Speaker 1: turn clear this afternoon. Upper sixties for highs sunny near 220 00:12:13,400 --> 00:12:16,960 Speaker 1: seventy Tomorrow, partly sunny, upper sixties for Sunday. Right now, 221 00:12:17,000 --> 00:12:23,440 Speaker 1: Claudie in fifty three in Central Park Markets, Headlines and 222 00:12:23,559 --> 00:12:26,840 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 223 00:12:26,960 --> 00:12:30,559 Speaker 1: the Bloomberg Business atand at Bloomberg Quicktape. This is a 224 00:12:30,600 --> 00:12:39,640 Speaker 1: Bloomberg Business Flash and I'm Karen Moscow. And US dot 225 00:12:39,720 --> 00:12:44,440 Speaker 1: Index futures are moving lower this morning, while equities in 226 00:12:44,480 --> 00:12:47,480 Speaker 1: Europe are extending a rebound that saw US stocks were 227 00:12:47,559 --> 00:12:50,760 Speaker 1: back from losses sparked by a hot inflation rating. We 228 00:12:50,880 --> 00:12:53,320 Speaker 1: checked the markets every fifteen minutes throughout the trading day 229 00:12:53,400 --> 00:12:56,640 Speaker 1: on Bloomberg, and P futures are down twelve points down, 230 00:12:56,679 --> 00:12:59,560 Speaker 1: Future is down eighty five. Nowesdays futures down fifty eight. 231 00:12:59,559 --> 00:13:02,200 Speaker 1: The Daks in Germany up six tents of a percent. 232 00:13:02,440 --> 00:13:04,880 Speaker 1: Ten your treasury at five thirty seconds, you're three point 233 00:13:04,960 --> 00:13:06,800 Speaker 1: nine two f cent. The yield on the two year 234 00:13:06,920 --> 00:13:10,080 Speaker 1: four point four three percent. Nine X Screwed oil is 235 00:13:10,120 --> 00:13:12,480 Speaker 1: down half percent or forty four cents at eighty eight 236 00:13:12,480 --> 00:13:15,439 Speaker 1: dollars sixty seven cents of barrel comes goaled down three 237 00:13:15,520 --> 00:13:17,920 Speaker 1: quarters of a percent or twelve dollars forty cents at 238 00:13:17,960 --> 00:13:21,080 Speaker 1: sixty and sixty four sixty an ounce. The euro point 239 00:13:21,200 --> 00:13:23,840 Speaker 1: nine seven four four against the dollar. British found one 240 00:13:23,840 --> 00:13:26,440 Speaker 1: point one two seven zero and the end one forty 241 00:13:26,480 --> 00:13:29,560 Speaker 1: seven point six eight and Bitcoin this morning is at 242 00:13:29,559 --> 00:13:33,120 Speaker 1: one point one percent and nineteen thousand, six hundred dollars. 243 00:13:33,120 --> 00:13:34,920 Speaker 1: It is a busy day for earnings a big Wall 244 00:13:34,920 --> 00:13:38,040 Speaker 1: Street banks reporting including JP, Morgan Chase, and City Group. 245 00:13:38,280 --> 00:13:40,720 Speaker 1: He also get a report on September retail sales at 246 00:13:40,760 --> 00:13:43,640 Speaker 1: eight thirty Wall Street Time as a Bloomberg Business Flash. 247 00:13:43,720 --> 00:13:45,880 Speaker 1: Now here's Michael Barr with more on what's going on 248 00:13:45,960 --> 00:13:48,560 Speaker 1: around the world. Munchael, Good morning, Good morning, Karen. The 249 00:13:48,640 --> 00:13:52,640 Speaker 1: House January six Committee voted unanimously to subpoena former President 250 00:13:52,640 --> 00:13:56,680 Speaker 1: Donald Trump for his testimony about the one Capital attack. 251 00:13:57,160 --> 00:13:59,920 Speaker 1: Earlier in the hearing, the panel presented new video of 252 00:14:00,000 --> 00:14:03,559 Speaker 1: final speaker Nancy Pelosi and other congressional leaders pleading for help. 253 00:14:04,080 --> 00:14:09,000 Speaker 1: It also outlined Trump's multipart plan to overturn his election loss. 254 00:14:09,440 --> 00:14:13,840 Speaker 1: President Joe Biden again criticized high US gas prices and 255 00:14:13,920 --> 00:14:17,720 Speaker 1: said he'd announced new actions to combat what he described 256 00:14:17,800 --> 00:14:21,160 Speaker 1: as a key driver of inflation. In baseball, the Yankees 257 00:14:21,200 --> 00:14:23,520 Speaker 1: will play the Guardians in Game two of the a 258 00:14:23,760 --> 00:14:27,720 Speaker 1: LDS after last night's rain out. The Astros lead two 259 00:14:27,720 --> 00:14:30,640 Speaker 1: games to zip over the Mariners in their a lbs 260 00:14:30,720 --> 00:14:33,480 Speaker 1: after last night's four to win. In the NHL, the 261 00:14:33,560 --> 00:14:37,880 Speaker 1: Rangers won, the Devil's Islanders and Capitals all lost. Thursday 262 00:14:37,960 --> 00:14:40,640 Speaker 1: night football, the Commanders beat the Bears in an action 263 00:14:40,720 --> 00:14:45,000 Speaker 1: back game twelve seven Sorry too soon. Global News twenty 264 00:14:45,000 --> 00:14:48,280 Speaker 1: four hours a day on airand on Bloomberg Quick Take 265 00:14:48,320 --> 00:14:52,040 Speaker 1: Forward by more than journalists analysts more than twenty countries. 266 00:14:52,240 --> 00:14:54,560 Speaker 1: I'm Michael bar this is Bloomberg NA. If you love 267 00:14:54,640 --> 00:14:57,760 Speaker 1: defense Man, what a game. Thank you, Michael. We're coming 268 00:14:57,840 --> 00:14:59,720 Speaker 1: up to five twenty on Wall Street Live from the 269 00:14:59,720 --> 00:15:03,520 Speaker 1: Blue Brig Interactive Broker Studios. This is Bloomberg Daybreak, and 270 00:15:03,600 --> 00:15:06,400 Speaker 1: Karen said it, this is a busy day for bank earnings. 271 00:15:06,400 --> 00:15:08,800 Speaker 1: We're gonna hear from four of the big six Wall 272 00:15:08,880 --> 00:15:11,720 Speaker 1: Street firms and starting in just a couple of hours 273 00:15:11,800 --> 00:15:15,800 Speaker 1: here Bloomberg Global Finance correspondent Shannelly Bassic's been up all 274 00:15:15,920 --> 00:15:19,080 Speaker 1: night getting ready for these earnings. I'm sure joining us 275 00:15:19,160 --> 00:15:22,920 Speaker 1: live this morning. So we got JP Morrigan, Wells, Fargo, Morgan, 276 00:15:23,040 --> 00:15:27,080 Speaker 1: Stanley City Group all opening their books this morning, Shanally. 277 00:15:27,160 --> 00:15:30,240 Speaker 1: And we've already heard from JP Morgan's Jamie Diamond doubling 278 00:15:30,280 --> 00:15:33,240 Speaker 1: down on The idea that a recession is coming makes 279 00:15:33,240 --> 00:15:36,280 Speaker 1: you wonder how much these banks are preparing for this 280 00:15:36,640 --> 00:15:38,200 Speaker 1: and whether we're going to see it play out in 281 00:15:38,200 --> 00:15:40,240 Speaker 1: the earnings. It's true because you have two things going 282 00:15:40,240 --> 00:15:43,040 Speaker 1: on at the same time. One Wall Street is expecting 283 00:15:43,080 --> 00:15:45,600 Speaker 1: these banks to start provisioning at a greater rate for 284 00:15:45,720 --> 00:15:48,760 Speaker 1: loan losses as they expect the economy to get worse. 285 00:15:48,920 --> 00:15:51,480 Speaker 1: The question is how much are they factoring in now 286 00:15:51,520 --> 00:15:54,440 Speaker 1: at the end of the third quarter into the fourth quarter. 287 00:15:54,920 --> 00:15:56,280 Speaker 1: Is it going to get worse from here? Are they're 288 00:15:56,280 --> 00:15:58,960 Speaker 1: going to need to add more provisions as time goes on. 289 00:15:59,200 --> 00:16:01,120 Speaker 1: The other thing about it is Jamie Diamond, and you 290 00:16:01,200 --> 00:16:04,000 Speaker 1: heard him talk about this a lot, having to really 291 00:16:04,320 --> 00:16:08,840 Speaker 1: uh boost their regulatory burdens here and how old more 292 00:16:08,880 --> 00:16:11,280 Speaker 1: capital due to to do to rules that he feels 293 00:16:11,520 --> 00:16:14,560 Speaker 1: is arbitrary here. That from him a lot. But you know, 294 00:16:14,960 --> 00:16:18,520 Speaker 1: the issue here is are the bank's gonna constrain lending 295 00:16:18,920 --> 00:16:21,080 Speaker 1: in the face of higher interest rates. It's a double 296 00:16:21,200 --> 00:16:23,600 Speaker 1: edged sword here they're really facing. And I mean that's 297 00:16:23,640 --> 00:16:25,520 Speaker 1: the story that we've been seeing over the last few 298 00:16:25,600 --> 00:16:27,760 Speaker 1: quarters here coming out of the pandemic. This idea of 299 00:16:27,760 --> 00:16:30,280 Speaker 1: provisioning for loan losses. The banks have been doing it 300 00:16:30,360 --> 00:16:34,360 Speaker 1: for months now. We've seen the stocks get hammered throughout 301 00:16:34,480 --> 00:16:37,000 Speaker 1: this year. I mean, how much more loan provision can 302 00:16:37,040 --> 00:16:39,920 Speaker 1: they do? Is there a possibility that we could see 303 00:16:40,000 --> 00:16:41,960 Speaker 1: some kind of surprise when it comes to that? We 304 00:16:42,080 --> 00:16:44,520 Speaker 1: sure can. Right now the street is expecting one point 305 00:16:44,520 --> 00:16:46,960 Speaker 1: two billion dollars worth of provisions over at JP Morten. 306 00:16:47,240 --> 00:16:49,160 Speaker 1: The other thing I would watch for is if charge 307 00:16:49,160 --> 00:16:53,400 Speaker 1: offs start to rise and loan quality therefore starts to deteriorate. 308 00:16:53,600 --> 00:16:56,480 Speaker 1: People are worried about credit cards, for example, but I 309 00:16:56,480 --> 00:16:58,160 Speaker 1: say in the face of higher interest rates, because the 310 00:16:58,160 --> 00:17:00,680 Speaker 1: banks want to be lending right now because they're making 311 00:17:00,680 --> 00:17:04,960 Speaker 1: more money from doing so. However, they are worried about consumers. 312 00:17:04,960 --> 00:17:08,120 Speaker 1: They are worried about credit quality, and are we going 313 00:17:08,160 --> 00:17:11,040 Speaker 1: to hear a little bit more of that? Well not. 314 00:17:11,080 --> 00:17:14,159 Speaker 1: Another thing Jamie Diamond said yesterday in Washington at the 315 00:17:14,160 --> 00:17:17,560 Speaker 1: International Institute of Finance was that consumers are fine now, 316 00:17:17,640 --> 00:17:19,119 Speaker 1: but there could be a bit of a six and 317 00:17:19,200 --> 00:17:22,480 Speaker 1: nine month lag here in terms of that total inflation 318 00:17:22,520 --> 00:17:24,919 Speaker 1: impact on their wallet. Yeah, it's been kind of a 319 00:17:25,000 --> 00:17:27,600 Speaker 1: mixed picture, hasn't it. When it comes to the consumer. 320 00:17:27,640 --> 00:17:29,879 Speaker 1: You mentioned Jamie Diamond's comments. I know we're not going 321 00:17:29,880 --> 00:17:32,360 Speaker 1: to hear from Bank of America until Monday, but we've 322 00:17:32,400 --> 00:17:35,720 Speaker 1: also heard from the CEO there, Brian moynihan, saying that 323 00:17:35,760 --> 00:17:38,760 Speaker 1: the consumer for the most part, is remaining resilient through this. 324 00:17:39,040 --> 00:17:42,080 Speaker 1: Where do you expect some of that consumer lending story 325 00:17:42,200 --> 00:17:44,840 Speaker 1: to particularly play out in the results we get today. 326 00:17:44,960 --> 00:17:47,280 Speaker 1: There's gonna be a huge focus on mortgages, and that 327 00:17:47,359 --> 00:17:50,280 Speaker 1: has been the case. The other question is consumers are 328 00:17:50,359 --> 00:17:53,800 Speaker 1: not feeling higher savings rates very meaningfully, so are the 329 00:17:53,840 --> 00:17:56,480 Speaker 1: banks going to start doing that? And now that rates 330 00:17:56,480 --> 00:17:58,399 Speaker 1: are higher? I would also say that a lot of 331 00:17:58,400 --> 00:18:01,160 Speaker 1: the stress is not even even us on the consumer side. 332 00:18:01,400 --> 00:18:06,040 Speaker 1: It's also on the side of large investors in large corporations. 333 00:18:06,320 --> 00:18:08,600 Speaker 1: People are worried about credit spreads and where they go 334 00:18:08,720 --> 00:18:11,600 Speaker 1: from here. People are also worried about markdowns tied to 335 00:18:11,720 --> 00:18:15,159 Speaker 1: leverage loans. There's already been about two billion dollars of 336 00:18:15,200 --> 00:18:18,600 Speaker 1: markdowns globally after the second quarter, but things have gotten 337 00:18:18,640 --> 00:18:21,240 Speaker 1: worse since then, and there's some large deals the banks 338 00:18:21,280 --> 00:18:24,680 Speaker 1: have to contend with Twitter, Citrix, Nielsen where they might 339 00:18:24,720 --> 00:18:27,560 Speaker 1: have to mark down hundreds of millions more. Where do 340 00:18:27,600 --> 00:18:29,280 Speaker 1: you think things are going to play out when it 341 00:18:29,280 --> 00:18:32,720 Speaker 1: comes to the trading desks. There's been so much volatility 342 00:18:32,800 --> 00:18:35,560 Speaker 1: in this market. I mean we saw it just yesterday 343 00:18:35,640 --> 00:18:38,320 Speaker 1: and could the trading desks kind of come to the rescue. Well, 344 00:18:38,359 --> 00:18:41,400 Speaker 1: that's been the case most of last year into this year, 345 00:18:41,400 --> 00:18:44,400 Speaker 1: and even during the pandemic as an activity really boosted 346 00:18:44,400 --> 00:18:47,880 Speaker 1: in terms of underwriting and new issue and really fixed 347 00:18:47,920 --> 00:18:51,320 Speaker 1: income trading and currencies and commodities also held up. But 348 00:18:51,400 --> 00:18:54,400 Speaker 1: now they're clients, The bank's clients are under a lot 349 00:18:54,880 --> 00:18:58,720 Speaker 1: more pressure, and you don't see that same try to 350 00:18:58,800 --> 00:19:02,920 Speaker 1: it's kind of trading tailwind that they had just over 351 00:19:02,960 --> 00:19:06,920 Speaker 1: the last several months. Really it's already started to wane, 352 00:19:07,000 --> 00:19:10,040 Speaker 1: and there's an expectation that it starts to have more 353 00:19:10,280 --> 00:19:12,720 Speaker 1: fractures in it as you see even parts of the 354 00:19:12,760 --> 00:19:16,280 Speaker 1: more healthy businesses come under pressure. If mortgages in the 355 00:19:16,280 --> 00:19:20,119 Speaker 1: real economy are under pressure, and there's more problems in 356 00:19:20,200 --> 00:19:22,960 Speaker 1: that market. Frankly, the trading of mortgages is also a 357 00:19:23,040 --> 00:19:25,920 Speaker 1: question mark. Lots to pass through as we get ready 358 00:19:25,960 --> 00:19:29,280 Speaker 1: for those earnings starting with JP Morgan and Wells Fargo 359 00:19:29,359 --> 00:19:32,119 Speaker 1: do out around seven am Wall Street time, then Morgan 360 00:19:32,200 --> 00:19:36,199 Speaker 1: Stanley follows and City Group for the Big Six getting 361 00:19:36,200 --> 00:19:39,480 Speaker 1: earning season kicking off here on Wall Street. Bloomberg Global 362 00:19:39,520 --> 00:19:43,200 Speaker 1: Finance correspondent Shinelli Bask, thanks for being here this morning 363 00:19:43,240 --> 00:19:47,040 Speaker 1: as we await those results. Looking ahead to the market, 364 00:19:47,080 --> 00:19:49,920 Speaker 1: open futures are moving a bit lower. SMP futures down 365 00:19:49,920 --> 00:19:53,040 Speaker 1: ten points, STAFF futures down sixty nine, NASTAC futures are 366 00:19:53,080 --> 00:19:56,399 Speaker 1: lower by fifty four points ten. Your treasury is up 367 00:19:56,440 --> 00:20:00,360 Speaker 1: six thirty seconds, the yield three point nine one. You're 368 00:20:00,400 --> 00:20:08,959 Speaker 1: listening to Bloomberg Daybreak Bloomberg eleven three oh. Weather clearing 369 00:20:09,000 --> 00:20:11,959 Speaker 1: this afternoon. We'll get up to the upper sixties, sunny 370 00:20:11,960 --> 00:20:14,359 Speaker 1: near seventy tomorrow. By Sunday will be in the upper 371 00:20:14,400 --> 00:20:17,960 Speaker 1: sixties once again under a partney sunny sky. Current semperature 372 00:20:18,000 --> 00:20:23,760 Speaker 1: in Central Park fifty three degrees. Broadcasting live from the 373 00:20:23,880 --> 00:20:27,800 Speaker 1: Bloomberg Interacted Broker Studio in New York. Bloomberg E Living 374 00:20:27,880 --> 00:20:32,480 Speaker 1: Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one 375 00:20:32,480 --> 00:20:35,439 Speaker 1: All six one to San Francisco Bloomberg and M sixty 376 00:20:35,600 --> 00:20:38,359 Speaker 1: to the Country Sirius XM Chado one nine tea and 377 00:20:38,480 --> 00:20:41,840 Speaker 1: around the globe, the Bloomberg Business APT and Bloomberg Radio 378 00:20:41,960 --> 00:20:51,399 Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on 379 00:20:51,440 --> 00:20:54,720 Speaker 1: Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. 380 00:20:54,800 --> 00:20:57,000 Speaker 1: Were just about four hours away from the open of 381 00:20:57,119 --> 00:20:59,080 Speaker 1: US trading. Let's get you up to date on the news. 382 00:20:59,080 --> 00:21:00,879 Speaker 1: You need to know what this sour. We enter the 383 00:21:00,920 --> 00:21:03,720 Speaker 1: week's final trading session coming off a volatile day. The 384 00:21:03,920 --> 00:21:06,960 Speaker 1: S and P fell two point four percent after yesterday's 385 00:21:07,000 --> 00:21:10,400 Speaker 1: CPI reading, only to close up two point six percent. 386 00:21:10,760 --> 00:21:14,439 Speaker 1: Data going back to has never seen such extreme readings 387 00:21:14,440 --> 00:21:17,640 Speaker 1: in both directions in a single day. Lori Calvacino's head 388 00:21:17,640 --> 00:21:21,040 Speaker 1: of US equity strategy at RBC Capital Markets, you have 389 00:21:21,119 --> 00:21:23,679 Speaker 1: to really look stock by stocks, sector by sector, different 390 00:21:23,680 --> 00:21:25,440 Speaker 1: parts of the market, figure out where you think most 391 00:21:25,440 --> 00:21:27,320 Speaker 1: of the bad news is baked and where you want 392 00:21:27,320 --> 00:21:29,240 Speaker 1: to be for the longer term, and start layering in 393 00:21:29,400 --> 00:21:31,560 Speaker 1: and it may go down more before it goes back up. 394 00:21:31,840 --> 00:21:34,880 Speaker 1: Lori Calvasino with RBC says we likely have not seen 395 00:21:34,920 --> 00:21:37,800 Speaker 1: a bottom yet. She expects volatility to continue as the 396 00:21:37,840 --> 00:21:41,879 Speaker 1: FED keeps hiking rates and yesterday's turnaround maybe short lived, Karen. 397 00:21:41,920 --> 00:21:44,520 Speaker 1: That's according to the Bank of America. The firm strategists 398 00:21:44,560 --> 00:21:46,840 Speaker 1: say stock markets and the US economy will have to 399 00:21:46,880 --> 00:21:51,120 Speaker 1: experience more pain before the Fed pivots away from aggressive tightening. 400 00:21:51,359 --> 00:21:54,200 Speaker 1: They don't expect the bottom until next year. The White House, 401 00:21:54,280 --> 00:21:58,200 Speaker 1: Nathan Meantime, was grasping for upside after US inflation rose 402 00:21:58,240 --> 00:22:00,639 Speaker 1: to a forty year high last month, and President Biden 403 00:22:00,680 --> 00:22:03,679 Speaker 1: spoke to reporters in Los Angeles, we also need to 404 00:22:03,720 --> 00:22:06,560 Speaker 1: make more progress bringing down the prices across the board. 405 00:22:07,040 --> 00:22:10,359 Speaker 1: That's why I just couldn't disagree more of my Republican 406 00:22:10,440 --> 00:22:13,280 Speaker 1: friends who say the biggest problem on our economy right 407 00:22:13,320 --> 00:22:16,760 Speaker 1: now is it working. Folks are making too much money. 408 00:22:16,920 --> 00:22:20,200 Speaker 1: President Biden also says too many Americans are being squeezed 409 00:22:20,240 --> 00:22:22,479 Speaker 1: by the current cost of living, though he notes overall 410 00:22:22,520 --> 00:22:25,200 Speaker 1: inflation was just two percent over the past three months. 411 00:22:25,480 --> 00:22:28,440 Speaker 1: Let's talk corporate earnings now, Karen, JP. Morgan City Group, 412 00:22:28,440 --> 00:22:31,800 Speaker 1: Morgan Stanley, and Wells Fargo all report before the market 413 00:22:31,880 --> 00:22:34,800 Speaker 1: opens today. Banks are expected to post the biggest profit 414 00:22:34,840 --> 00:22:37,840 Speaker 1: decline of any sector this quarter, as analysts turned sour 415 00:22:37,880 --> 00:22:40,439 Speaker 1: on the outlook for financials. Outside of results, will be 416 00:22:40,440 --> 00:22:42,800 Speaker 1: watching for how much cash firms are setting aside for 417 00:22:42,880 --> 00:22:47,840 Speaker 1: potentially bad loans turning overseas. Nathan's speculation is growing the 418 00:22:47,920 --> 00:22:50,960 Speaker 1: UK government will abandoned its plans for massive tax cuts. 419 00:22:51,040 --> 00:22:53,879 Speaker 1: Chancellor Quasi Quar Tang is heading home early from I 420 00:22:54,040 --> 00:22:56,520 Speaker 1: m F meetings in Washington as the Bank of England 421 00:22:56,600 --> 00:22:59,639 Speaker 1: ends its emergency bond buying program today. He spoke with 422 00:22:59,720 --> 00:23:03,120 Speaker 1: former bo E member Martin Wheeley about the move. Andrew 423 00:23:03,160 --> 00:23:06,159 Speaker 1: Bailey has given some thought to the question of what 424 00:23:06,359 --> 00:23:10,280 Speaker 1: help might be needed next week and in what circumstances 425 00:23:10,400 --> 00:23:14,639 Speaker 1: that could probably be done without continuing the current scheme 426 00:23:14,680 --> 00:23:18,400 Speaker 1: in operation. Former Bank of England member Martin Wheeley says 427 00:23:18,480 --> 00:23:21,280 Speaker 1: reversing the plan for massive tax cuts would restore the 428 00:23:21,359 --> 00:23:25,040 Speaker 1: UK government's credibility. Futures this morning are lower S and 429 00:23:25,119 --> 00:23:28,520 Speaker 1: P futures are down sixteen points and straight ahead we 430 00:23:28,600 --> 00:23:32,320 Speaker 1: have your latest local headlines plus a check of sports 431 00:23:32,359 --> 00:23:40,440 Speaker 1: and this is Bloomberg. Thanks on Wall Street fifty three 432 00:23:40,440 --> 00:23:42,800 Speaker 1: degrees in Central Park Still didn't with that crash wise 433 00:23:42,800 --> 00:23:46,439 Speaker 1: found Jackie Robinson Parkway Metropolitan Avenue. Michael Bars here with 434 00:23:46,480 --> 00:23:48,080 Speaker 1: what else is going on in New York and around 435 00:23:48,080 --> 00:23:50,200 Speaker 1: the world. Michael, thank you very much, Nathan. The House 436 00:23:50,200 --> 00:23:54,119 Speaker 1: committee investigating last year's attack on the US Capitol voted 437 00:23:54,160 --> 00:23:57,760 Speaker 1: to subpoena Donald Trump. The committee and a unanimous vote 438 00:23:57,760 --> 00:24:01,119 Speaker 1: agree to demand documents and testament on me from Trump 439 00:24:01,119 --> 00:24:04,520 Speaker 1: about his role in the January sixth attack. Committee chairman 440 00:24:04,560 --> 00:24:08,679 Speaker 1: Bennie Thompson, he is the one person at the center 441 00:24:08,760 --> 00:24:13,239 Speaker 1: of the story of what happened on January six so 442 00:24:13,280 --> 00:24:16,000 Speaker 1: you want to hear from him. In a post on 443 00:24:16,080 --> 00:24:19,399 Speaker 1: his Truth social platform overnight, Trump said, I will be 444 00:24:19,440 --> 00:24:23,280 Speaker 1: putting out my response to the Unselect Committee of Political 445 00:24:23,320 --> 00:24:27,720 Speaker 1: Hacks and Thugs tomorrow morning at eight am. Authorities in 446 00:24:27,760 --> 00:24:30,520 Speaker 1: the Connecticut say to Bristol police officers who were shot 447 00:24:30,600 --> 00:24:33,639 Speaker 1: dead had apparently been drawn into an ambush by an 448 00:24:33,680 --> 00:24:38,040 Speaker 1: emergency call about possible domestic violence. The third officer was 449 00:24:38,080 --> 00:24:41,560 Speaker 1: wounded in the gunfire. Late Wednesday night, Governor Need Lamont 450 00:24:41,640 --> 00:24:44,520 Speaker 1: said there are too many illegal guns and not enough 451 00:24:44,560 --> 00:24:48,040 Speaker 1: cops on the streets. It's just a reminder what the 452 00:24:48,040 --> 00:24:50,880 Speaker 1: men in blue, men and women in blue do every 453 00:24:50,920 --> 00:24:52,919 Speaker 1: day on our behalf to keep us safe and the 454 00:24:53,000 --> 00:24:57,040 Speaker 1: risk they take. Governor Lamont ordered all US and state 455 00:24:57,160 --> 00:25:00,760 Speaker 1: flags Lord to half staff a you are opened fund. 456 00:25:00,800 --> 00:25:03,200 Speaker 1: They are along a walking trail in a Raleigh, North 457 00:25:03,200 --> 00:25:07,240 Speaker 1: Carolina neighborhood, killing an off duty police officer and four others. 458 00:25:07,520 --> 00:25:10,560 Speaker 1: Police say the suspect led police on an hour's long 459 00:25:10,600 --> 00:25:14,000 Speaker 1: man hunt before he was cornered in a home and arrested. 460 00:25:14,240 --> 00:25:17,720 Speaker 1: North Carolina Governor Roy Cooper said terror has come to running. 461 00:25:18,280 --> 00:25:27,480 Speaker 1: This is a senseless, horrific, an infuriating active violence that 462 00:25:27,600 --> 00:25:32,560 Speaker 1: has been committed. Authorities would only describe the suspected shooter 463 00:25:32,640 --> 00:25:36,040 Speaker 1: as a white male juvenile. Florida jury rejected the death 464 00:25:36,040 --> 00:25:40,360 Speaker 1: penalty for the person responsible for the Parkland Schools shooting 465 00:25:40,560 --> 00:25:44,560 Speaker 1: that left seventeen students and staff dead. The jury instead 466 00:25:44,640 --> 00:25:47,840 Speaker 1: recommended the sentence of life without parole. Many family members 467 00:25:47,840 --> 00:25:50,879 Speaker 1: of the victims were stunned. Global News twenty four hours 468 00:25:50,880 --> 00:25:54,200 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 469 00:25:54,240 --> 00:25:56,959 Speaker 1: more than twenty seven hundred journalists and analysts more than 470 00:25:57,000 --> 00:26:00,359 Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, 471 00:26:00,400 --> 00:26:08,119 Speaker 1: Thanks Michael on Wall Street. Time for the Bloomberg Sports 472 00:26:08,160 --> 00:26:10,640 Speaker 1: Update with John Sennshower. All right, Nat the day baseball 473 00:26:10,640 --> 00:26:13,720 Speaker 1: in the Bronx one o'clock start today, Yankees Guardians game too, 474 00:26:13,920 --> 00:26:16,760 Speaker 1: Estra Cortez, Shane Bieber. Last night's rain now means no 475 00:26:16,840 --> 00:26:19,600 Speaker 1: more off days in the series. Astros and Mariners Game 476 00:26:19,640 --> 00:26:22,000 Speaker 1: two in Houston. Seattle, who blew a four one lead 477 00:26:22,040 --> 00:26:24,640 Speaker 1: in Game one, had a lead sixth in a one 478 00:26:25,560 --> 00:26:28,960 Speaker 1: albats huntas just want to let Phil just said good 479 00:26:29,080 --> 00:26:35,200 Speaker 1: five and the late this Crawford boxes Britty, so you're 480 00:26:35,240 --> 00:26:37,960 Speaker 1: not does it again? Baby Amy Albert has had the 481 00:26:38,000 --> 00:26:40,080 Speaker 1: walk off free run shot to win the opener. Astros 482 00:26:40,080 --> 00:26:42,600 Speaker 1: won four to lead the series to nothing. Game three 483 00:26:42,640 --> 00:26:45,119 Speaker 1: tomorrow will be the first postseason game in Seattle in 484 00:26:45,200 --> 00:26:47,919 Speaker 1: twenty one years. This afternoon is the first one in 485 00:26:47,920 --> 00:26:50,960 Speaker 1: Philadelphia in eleven years. Phillies and Brains retied at once, 486 00:26:51,040 --> 00:26:54,360 Speaker 1: so the Dodgers and Padres. They played tonight in San Diego. 487 00:26:54,400 --> 00:26:58,080 Speaker 1: The day began for the Washington Commanders with an explosive 488 00:26:58,320 --> 00:27:00,919 Speaker 1: ESPN report of the team's owner Dan Snyder has not 489 00:27:01,119 --> 00:27:04,439 Speaker 1: been forced out by fellow owners because he has dirt 490 00:27:04,520 --> 00:27:07,480 Speaker 1: on several of them and on Commissioner Roger Goodell, and 491 00:27:07,480 --> 00:27:09,920 Speaker 1: that he can quote blow up the NFL if they 492 00:27:09,920 --> 00:27:12,399 Speaker 1: try to force them out. Snyder has already been fined 493 00:27:12,480 --> 00:27:15,280 Speaker 1: and suspended for his actions as team owners. The Commanders 494 00:27:15,280 --> 00:27:17,640 Speaker 1: then played the Thursday Night Gave in Chicago. They held 495 00:27:17,680 --> 00:27:20,200 Speaker 1: on to win twelve to seven. Bears at a first 496 00:27:20,200 --> 00:27:22,200 Speaker 1: and goal to Washington five in the final minute, but 497 00:27:22,240 --> 00:27:24,959 Speaker 1: couldn't score. Both teams are two and four. Rangers are 498 00:27:24,960 --> 00:27:27,520 Speaker 1: two and oh seven three Route in Minnesota three goals 499 00:27:27,520 --> 00:27:30,399 Speaker 1: in the first period, three more in the third. Islanders 500 00:27:30,440 --> 00:27:32,800 Speaker 1: opener was a three one home loss the Floorida. The 501 00:27:32,800 --> 00:27:34,960 Speaker 1: Devil's gave up four straight goals. They lost five to 502 00:27:35,080 --> 00:27:38,560 Speaker 1: at Philadelphia. Nicks and Nets have their preseason finales tonight. 503 00:27:38,720 --> 00:27:41,600 Speaker 1: Nicks host Washington, the Nets to visit in Minnesota. John 504 00:27:41,640 --> 00:27:45,119 Speaker 1: Stash Howard Bloomberg Sports Nathan Thank you, John seven on 505 00:27:45,160 --> 00:27:47,440 Speaker 1: Wall Street time for the Trice State Business Report with 506 00:27:47,520 --> 00:27:52,159 Speaker 1: Bloomberg stot Car construction started on Hatch Life Sciences Longfellow 507 00:27:52,160 --> 00:27:55,400 Speaker 1: Real Estate Partners New Life Sciences facility on twenty third 508 00:27:55,440 --> 00:27:58,760 Speaker 1: Street in Queens, New York. Business Journal reports the developers 509 00:27:58,760 --> 00:28:01,960 Speaker 1: anticipating a two hundred twenty five million dollar investment into 510 00:28:01,960 --> 00:28:05,520 Speaker 1: the property. Twenty four technology and biotech companies still in 511 00:28:05,560 --> 00:28:08,959 Speaker 1: their building and investing Stages have been approved to participate 512 00:28:09,040 --> 00:28:12,080 Speaker 1: in New Jersey's Net Operating Loss Program. They are a 513 00:28:12,080 --> 00:28:14,280 Speaker 1: prooved to receive a total of a combined seventy five 514 00:28:14,320 --> 00:28:16,919 Speaker 1: million dollars to fund working capital or R and D. 515 00:28:17,240 --> 00:28:20,840 Speaker 1: The program enables participants to sell their net operating losses 516 00:28:21,000 --> 00:28:24,560 Speaker 1: and unused R and D tax credits to unrelated profitable 517 00:28:24,600 --> 00:28:28,520 Speaker 1: companies for cash. Brokers Frederick Ekland and John Comes expect 518 00:28:28,560 --> 00:28:31,760 Speaker 1: to sell out their newest condo development in Manhattan's Greenwich 519 00:28:31,880 --> 00:28:34,679 Speaker 1: Village before a single unit is formally put on the market. 520 00:28:34,960 --> 00:28:37,520 Speaker 1: The pair and anticipate that even with home sales slowing 521 00:28:37,520 --> 00:28:39,960 Speaker 1: in New York, buyers will quickly snap up all twenty 522 00:28:40,000 --> 00:28:43,400 Speaker 1: eight apartments at sixty four University Place. That's the Bloomberg 523 00:28:43,440 --> 00:28:46,960 Speaker 1: Tri State Business Report. I'm Scott Carr. Thank you, Scott 524 00:28:47,200 --> 00:28:49,240 Speaker 1: on Wall Street. Bloomberg Radio is on the air from 525 00:28:49,240 --> 00:28:51,960 Speaker 1: San Francisco to New York, London to Hong Kong. Let's 526 00:28:52,000 --> 00:28:53,720 Speaker 1: check in with our global news team for some of 527 00:28:53,760 --> 00:28:56,440 Speaker 1: the top stories heard on our three hundred affiliate radio 528 00:28:56,480 --> 00:29:02,080 Speaker 1: stations around the world. I'm Steve Podas kan K and 529 00:29:02,280 --> 00:29:05,680 Speaker 1: X in Los Angeles. We're talking about Littell unveiling a 530 00:29:05,800 --> 00:29:09,520 Speaker 1: Tina Turner Barbie doll as part of its music series. 531 00:29:09,880 --> 00:29:13,280 Speaker 1: I'm Corney's Dona Hellan ktr H in Houston mortgage rate 532 00:29:13,320 --> 00:29:15,840 Speaker 1: search to the highest in twenty years at six point 533 00:29:15,920 --> 00:29:20,600 Speaker 1: nine on Gina Servetti. And for w c CEO in Minneapolis, 534 00:29:20,640 --> 00:29:23,920 Speaker 1: I'm reporting a Twin Cities area inflation is rising at 535 00:29:23,920 --> 00:29:27,160 Speaker 1: a slower pace than the national rate. I'm Scott Carr 536 00:29:27,600 --> 00:29:29,960 Speaker 1: w w J in Detroit term reporting a on the 537 00:29:30,000 --> 00:29:33,960 Speaker 1: first new development at Detroit City Airport in thirty years. 538 00:29:34,360 --> 00:29:36,680 Speaker 1: Those are some of the stories our twenty seven hundred 539 00:29:36,720 --> 00:29:40,120 Speaker 1: Bloomberg journalists and in less working on this morning around 540 00:29:40,120 --> 00:29:42,479 Speaker 1: the world. It's five thirty nine on Wall Street. The 541 00:29:42,520 --> 00:29:47,000 Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was 542 00:29:47,040 --> 00:29:50,960 Speaker 1: written by the Bloomberg Editorial Board in Beijing. Next week, 543 00:29:51,160 --> 00:29:54,560 Speaker 1: Shijin Ping will almost certainly claim a third term as 544 00:29:54,600 --> 00:29:57,960 Speaker 1: head of the ruling Communist Party, cementing his status as 545 00:29:57,960 --> 00:30:02,360 Speaker 1: the most powerful Chinese leader since Mao Zedong. The precedents 546 00:30:02,360 --> 00:30:06,600 Speaker 1: shattering move is fraught with risks, from economic instability at 547 00:30:06,640 --> 00:30:11,120 Speaker 1: home to adventurism abroad. To guard against them, the US 548 00:30:11,280 --> 00:30:15,680 Speaker 1: must remain disciplined and focused on building up its own strengths. 549 00:30:16,040 --> 00:30:20,400 Speaker 1: That means bolstering its defenses against economic disruptions, for example, 550 00:30:20,720 --> 00:30:25,440 Speaker 1: by continuing to reduce dependence on Chinese supply chains. The 551 00:30:25,560 --> 00:30:29,000 Speaker 1: US also should embrace the advantages of its more open 552 00:30:29,080 --> 00:30:34,280 Speaker 1: system rather than trying to emulate China's command economy. By 553 00:30:34,360 --> 00:30:38,440 Speaker 1: clinging to power, she is leading China into uncharted territory. 554 00:30:38,880 --> 00:30:41,760 Speaker 1: That's all the more reason for the US to maintain 555 00:30:41,960 --> 00:30:45,760 Speaker 1: a steady course. This editorial was written by the Bloomberg 556 00:30:45,840 --> 00:30:49,160 Speaker 1: Editorial Board. For more Bloomberg opinion, please go to Bloomberg 557 00:30:49,200 --> 00:30:52,640 Speaker 1: dot com, slash opinion or OPI N go on the 558 00:30:52,640 --> 00:30:57,120 Speaker 1: Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg 559 00:30:57,160 --> 00:31:00,760 Speaker 1: opinion editorials every weekday. At this time, terminal customers can 560 00:31:00,800 --> 00:31:04,520 Speaker 1: read more at O P I N. Gold futures are 561 00:31:04,560 --> 00:31:07,200 Speaker 1: adding to their declines now we have SMP futures down 562 00:31:07,200 --> 00:31:10,480 Speaker 1: fourteen points, STAFF futures down nineties seven NASDAK futures down 563 00:31:10,520 --> 00:31:13,560 Speaker 1: seventy one points. We'll talk about the wild swings in 564 00:31:13,640 --> 00:31:18,160 Speaker 1: this market next with Andrew Sheets, chief cross assets strategist 565 00:31:18,200 --> 00:31:23,280 Speaker 1: at Morgan Stanley. This is Bloomberg Bloomberg eleven three oh 566 00:31:23,360 --> 00:31:25,640 Speaker 1: weather clearing this afternoon, We'll get up to the upper 567 00:31:25,760 --> 00:31:28,960 Speaker 1: sixties today, sunshine high near seventy to start the weekend. 568 00:31:28,960 --> 00:31:31,000 Speaker 1: Tomorrow will be partly sunny Sunday with highs in the 569 00:31:31,040 --> 00:31:33,960 Speaker 1: upper sixties once again. Right now fifty three in Central 570 00:31:34,000 --> 00:31:40,480 Speaker 1: Park Markets. Headlines and breaking news twenty four hours a 571 00:31:40,560 --> 00:31:43,600 Speaker 1: day at Bloomberg dot com, the Bloomberg Business apt and 572 00:31:43,760 --> 00:31:53,120 Speaker 1: at Bloomberg Quick Tape. He's a Bloomberg Business large and 573 00:31:53,160 --> 00:31:55,800 Speaker 1: I'm camera in Moscow. This updates brought to you by SEI, 574 00:31:55,960 --> 00:31:59,120 Speaker 1: built on advanced technologies and fifty years of innovation. SEI 575 00:31:59,200 --> 00:32:03,640 Speaker 1: offers at A managers are comprehensive and flexible operations outsourcing platform. 576 00:32:03,880 --> 00:32:07,080 Speaker 1: Go to s i C dot com slash managers. And 577 00:32:07,160 --> 00:32:10,360 Speaker 1: futures this morning are lower. SMP futures down about nineteen 578 00:32:10,400 --> 00:32:12,680 Speaker 1: points and now features down a hundred twenty seven and 579 00:32:12,760 --> 00:32:15,400 Speaker 1: NASDAC futures down ninety three. The ten year treasury of 580 00:32:15,520 --> 00:32:18,280 Speaker 1: seven thirties seconds yield three point on one percent, and 581 00:32:18,280 --> 00:32:21,080 Speaker 1: they yield on a two year four point for three percent. 582 00:32:21,360 --> 00:32:24,240 Speaker 1: And bitcoin is at nineteen thousand, six hundred dollars. That's 583 00:32:24,320 --> 00:32:27,200 Speaker 1: up one point one percent. That's a Bloomberg business flash. 584 00:32:27,200 --> 00:32:29,280 Speaker 1: Now here's Michael Barr with more on what's going on 585 00:32:29,320 --> 00:32:31,880 Speaker 1: around the world. Michael Karen, thank you very much. The 586 00:32:32,000 --> 00:32:35,360 Speaker 1: House January six Committee wrapped up yesterday's public hearing with 587 00:32:35,440 --> 00:32:39,640 Speaker 1: the call to subpoena former President Trump. Trump responded saying 588 00:32:39,680 --> 00:32:43,960 Speaker 1: the Unselect Committee is a giant scam presided over by 589 00:32:44,000 --> 00:32:48,560 Speaker 1: a group of radical left losers and two field Republicans. Meanwhile, 590 00:32:48,640 --> 00:32:51,760 Speaker 1: former President Trump has suffered another setback in the Mara 591 00:32:51,880 --> 00:32:55,480 Speaker 1: Lago documents investigation. The Supreme Court has refused to get 592 00:32:55,480 --> 00:32:58,000 Speaker 1: involved in a dispute over whether a third party should 593 00:32:58,040 --> 00:33:02,760 Speaker 1: review those classified documents seized by the FBI. In baseball, 594 00:33:02,800 --> 00:33:05,080 Speaker 1: the Yankees will play the Guardians in Game two of 595 00:33:05,240 --> 00:33:08,640 Speaker 1: the A l B S after last night's rain out. 596 00:33:08,920 --> 00:33:11,560 Speaker 1: The Astros lead two games to zip over the Mariners 597 00:33:11,600 --> 00:33:13,920 Speaker 1: in their A l B S. After last night's Sports 598 00:33:14,000 --> 00:33:17,040 Speaker 1: You Win. Thursday Night Football, the Commanders beat the Bears 599 00:33:17,080 --> 00:33:20,720 Speaker 1: twelve seven. In the NHL, the Rangers won, the Devil's 600 00:33:20,760 --> 00:33:24,760 Speaker 1: Islanders and Capitals all lost. Global News twenty four hours 601 00:33:24,760 --> 00:33:28,040 Speaker 1: a day on here and on Bloomberg Quick Take, powered 602 00:33:28,040 --> 00:33:31,000 Speaker 1: by more than seven hundred journalists and analyists more than 603 00:33:31,040 --> 00:33:33,960 Speaker 1: a hundred twenty countries. I'm Michael Barr, and this is 604 00:33:33,960 --> 00:33:36,520 Speaker 1: Bloomberg Nathan. Thanks Michael. We're coming up to five forty 605 00:33:36,600 --> 00:33:39,640 Speaker 1: nine on Wall Street Life from the Bloomberg Interactive Broker Studios. 606 00:33:39,720 --> 00:33:42,640 Speaker 1: This is Bloomberg Daybreak. We're very pleased to be joined 607 00:33:42,640 --> 00:33:46,000 Speaker 1: this morning by Andrew Sheets, chief cross Assets strategist at 608 00:33:46,000 --> 00:33:49,880 Speaker 1: Morgan Stanley, as we try to assess these wild swings 609 00:33:50,000 --> 00:33:53,600 Speaker 1: in the market. Uh, Andrew, good morning. We know from 610 00:33:53,880 --> 00:33:56,840 Speaker 1: data going back as far as Bloomberg has been around 611 00:33:56,840 --> 00:33:59,560 Speaker 1: that there's never been an intra day move like what 612 00:33:59,640 --> 00:34:04,360 Speaker 1: we saw yesterday in the SMP five. What was behind that? 613 00:34:06,200 --> 00:34:09,480 Speaker 1: Good morning? Well, I think what we are dealing with 614 00:34:09,719 --> 00:34:13,600 Speaker 1: is just another extraordinary data point in an extraordinary year. 615 00:34:13,680 --> 00:34:15,879 Speaker 1: You know, this year is the first year that you've 616 00:34:15,880 --> 00:34:19,160 Speaker 1: seen both equities and bonds down more than ten percent, 617 00:34:19,400 --> 00:34:22,680 Speaker 1: you know, going back over the last almost a hundred years. 618 00:34:22,719 --> 00:34:26,279 Speaker 1: So we we need to get used to. We have 619 00:34:26,360 --> 00:34:29,160 Speaker 1: gotten used to on precedented moves. But I think another 620 00:34:29,440 --> 00:34:30,959 Speaker 1: you know, thing that we need to keep in mind 621 00:34:31,000 --> 00:34:33,120 Speaker 1: is that in bear markets, and I think we are 622 00:34:33,120 --> 00:34:35,959 Speaker 1: still in a bear market. You two, you do tend 623 00:34:36,000 --> 00:34:39,000 Speaker 1: to get these quite violent reversals. And so if we 624 00:34:39,040 --> 00:34:42,840 Speaker 1: look back to prior reversals of close to this, we 625 00:34:42,840 --> 00:34:44,879 Speaker 1: saw a number in two thousand and two, we saw 626 00:34:44,920 --> 00:34:47,920 Speaker 1: some in two thousand and eight. So while it's welcome 627 00:34:48,040 --> 00:34:50,280 Speaker 1: that we saw some relief, I think it it doesn't 628 00:34:50,320 --> 00:34:53,279 Speaker 1: necessarily change the broader backdrop. Well, when you say we 629 00:34:53,360 --> 00:34:56,200 Speaker 1: have to get used to these kinds of wild moves, 630 00:34:56,800 --> 00:34:58,480 Speaker 1: dig into that a little bit more. What do you 631 00:34:58,520 --> 00:35:00,600 Speaker 1: mean by that? How much longer do you think we 632 00:35:00,640 --> 00:35:04,239 Speaker 1: have to get used to this kind of volatility? Well, 633 00:35:04,320 --> 00:35:06,480 Speaker 1: I ironically, you know that the data point that I 634 00:35:06,560 --> 00:35:10,240 Speaker 1: think people were pointing to yesterday that was associated with 635 00:35:10,239 --> 00:35:14,040 Speaker 1: with the rally in the market, this upside surprise to inflation, 636 00:35:14,360 --> 00:35:17,400 Speaker 1: I think is actually still a driver of that volatility. 637 00:35:17,440 --> 00:35:21,600 Speaker 1: I think as long as core inflation is surprised into 638 00:35:21,600 --> 00:35:24,319 Speaker 1: the upside, as long as core inflation is still uncomfortably 639 00:35:24,400 --> 00:35:27,800 Speaker 1: high for the FED, the FED and other central banks 640 00:35:27,800 --> 00:35:30,799 Speaker 1: by extension can't pivot and can't provide the type of 641 00:35:30,840 --> 00:35:33,640 Speaker 1: relief that I think markets are are hoping. And so 642 00:35:34,120 --> 00:35:35,920 Speaker 1: you know, when we think about the market backdrop, I 643 00:35:35,960 --> 00:35:39,200 Speaker 1: think it's still a sequencing issue. First, the market needs 644 00:35:39,239 --> 00:35:42,800 Speaker 1: to get comfortable that rate volatility is coming down. Then 645 00:35:43,040 --> 00:35:45,960 Speaker 1: markets need to get comfortable with the level of economic volatility. 646 00:35:46,000 --> 00:35:47,839 Speaker 1: And I think we're still going through that first part. 647 00:35:47,960 --> 00:35:49,920 Speaker 1: So I think until we start to see some more 648 00:35:49,960 --> 00:35:52,239 Speaker 1: relief on the on the inflation front, which again we 649 00:35:52,360 --> 00:35:55,600 Speaker 1: didn't get this month, I think we still face heightened 650 00:35:55,640 --> 00:35:59,279 Speaker 1: uncertainty in the backdrop. Now we saw traders pretty much 651 00:35:59,360 --> 00:36:02,799 Speaker 1: a price seventy five basis point move next month. What's 652 00:36:02,800 --> 00:36:07,560 Speaker 1: your thinking on where the Fed goes in subsequent meetings. 653 00:36:07,560 --> 00:36:11,040 Speaker 1: Are we looking at even more jumbo sized rate hikes 654 00:36:11,040 --> 00:36:15,200 Speaker 1: on the back of that inflation print. Yeah, so, so 655 00:36:15,239 --> 00:36:17,520 Speaker 1: we we do think that this makes you a seventy 656 00:36:17,560 --> 00:36:21,040 Speaker 1: five basis point rate hike quite likely. And I think 657 00:36:21,040 --> 00:36:23,080 Speaker 1: the challenge here is that, you know, this is the 658 00:36:23,160 --> 00:36:29,799 Speaker 1: second straight CPI report that's been well above consensus expectations, 659 00:36:30,160 --> 00:36:33,640 Speaker 1: and so I think as long as we're seeing that tattern, 660 00:36:34,120 --> 00:36:37,160 Speaker 1: the FED will be under more pressure or the market 661 00:36:37,200 --> 00:36:40,239 Speaker 1: will certainly think it's more likely that the Fed errors 662 00:36:40,320 --> 00:36:42,680 Speaker 1: on the side of caution. So our our interest rate 663 00:36:42,719 --> 00:36:45,640 Speaker 1: strategist of Organ Stanley have been of the view that 664 00:36:45,719 --> 00:36:48,120 Speaker 1: the curve will invert more that we'll see the one 665 00:36:48,200 --> 00:36:51,360 Speaker 1: year rate underperformed the ten year rate, and that's a 666 00:36:51,440 --> 00:36:55,040 Speaker 1: function of the market, you know, potentially just assigning more 667 00:36:55,160 --> 00:36:58,360 Speaker 1: risk premium to a higher terminal rate for Fed funds 668 00:36:58,760 --> 00:37:00,640 Speaker 1: as we get these upsides of RISS to c p 669 00:37:00,800 --> 00:37:02,920 Speaker 1: I And what impact is that going to have on 670 00:37:03,000 --> 00:37:05,880 Speaker 1: the stock market if we do see an even deeper 671 00:37:05,880 --> 00:37:10,879 Speaker 1: reversion in the yield curve. Yes, I think it's it's 672 00:37:10,880 --> 00:37:14,279 Speaker 1: still it's still a valuation challenge, you know. I think 673 00:37:14,360 --> 00:37:17,319 Speaker 1: you have a market where the earnings yield for the 674 00:37:17,440 --> 00:37:21,719 Speaker 1: smp is is around US six percent UH and the 675 00:37:21,800 --> 00:37:25,320 Speaker 1: yield on investment grade corporate bonds is around six percent. 676 00:37:25,400 --> 00:37:28,560 Speaker 1: You know, in that environment, equities are not obviously a 677 00:37:28,640 --> 00:37:32,600 Speaker 1: cheap asset, even though they have de rated and cheapened 678 00:37:32,600 --> 00:37:35,040 Speaker 1: a lot a year to date. And so, you know, 679 00:37:35,120 --> 00:37:37,520 Speaker 1: I think the higher that the front end rate goes, 680 00:37:37,560 --> 00:37:40,879 Speaker 1: that obviously puts upward pressure on longer end yields. At 681 00:37:40,920 --> 00:37:43,239 Speaker 1: a time when when my colleague Michael Wilson in the 682 00:37:43,360 --> 00:37:45,640 Speaker 1: U S and my colleague Graham Sector in Europe are 683 00:37:45,680 --> 00:37:49,440 Speaker 1: our equity strategist at Morgan Stanley still think earnings estimates 684 00:37:49,520 --> 00:37:52,439 Speaker 1: come down so I think this is an environment where 685 00:37:52,480 --> 00:37:55,880 Speaker 1: the equities valuations have improved, But actually it's often in 686 00:37:55,920 --> 00:37:59,000 Speaker 1: the fixed income markets, the investment grade credit markets where 687 00:37:59,000 --> 00:38:01,840 Speaker 1: we think that valuation is currently better. Just thirty seconds 688 00:38:01,880 --> 00:38:03,960 Speaker 1: left here, Andrew. But other certain sectors of the market 689 00:38:04,000 --> 00:38:08,759 Speaker 1: that are looking oversold to you, well, I think at 690 00:38:08,760 --> 00:38:12,840 Speaker 1: the moment the challenges the defensives are you know, usually 691 00:38:12,880 --> 00:38:15,680 Speaker 1: work in this environment, but they're well owned. So healthcare 692 00:38:15,760 --> 00:38:18,240 Speaker 1: is the sector that we like, although it's performed well 693 00:38:18,280 --> 00:38:21,200 Speaker 1: in Europe. We think energy looks attractive. And we also 694 00:38:21,239 --> 00:38:23,759 Speaker 1: think banks while perform cyclicals in Europe going into this 695 00:38:23,800 --> 00:38:26,640 Speaker 1: earning season, and we'll see how banks in the US do. 696 00:38:27,200 --> 00:38:29,560 Speaker 1: And um, just a couple hours here. As a bank 697 00:38:29,600 --> 00:38:32,240 Speaker 1: earning season gets underweight, we gotta leave it there for now. Andrew, 698 00:38:32,280 --> 00:38:35,240 Speaker 1: thanks so much for the time. Andrew Sheets, chief cross 699 00:38:35,239 --> 00:38:39,200 Speaker 1: assets strategist at Morgan Stanley with us this morning. Karen Nathan, 700 00:38:39,239 --> 00:38:41,920 Speaker 1: thank you. It is five fifty three on Wall Straight. 701 00:38:41,960 --> 00:38:44,960 Speaker 1: Now to a legal story where watching this morning, Judge 702 00:38:45,120 --> 00:38:47,879 Speaker 1: James Hoe, a conservative judge on the Fifth Circuit Court 703 00:38:47,920 --> 00:38:51,840 Speaker 1: of Appeals, is boycotting a Yale law students, saying he 704 00:38:51,880 --> 00:38:54,640 Speaker 1: will no longer hire law clerks from Yale because of 705 00:38:54,680 --> 00:38:58,040 Speaker 1: what he called the school's cancel culture. The Trump appointee 706 00:38:58,120 --> 00:39:02,160 Speaker 1: cited instances where students pro chesti conservative speakers on campus. 707 00:39:02,440 --> 00:39:05,239 Speaker 1: Judge Elizabeth Branch of the Eleventh Circuit Court of Appeals 708 00:39:05,239 --> 00:39:08,040 Speaker 1: and other Trump appointee so she will join the boycott, 709 00:39:08,080 --> 00:39:11,240 Speaker 1: although other judges have criticized the policy. For more. Bloomberg 710 00:39:11,280 --> 00:39:14,759 Speaker 1: student Grosso speaks to judiciary expert Professor Carl Tobias of 711 00:39:14,800 --> 00:39:18,160 Speaker 1: the University of Richmond Law School, Can you explain the 712 00:39:18,200 --> 00:39:24,000 Speaker 1: reasons why Judge Hoe is essentially blacklisting Yale students? Well, 713 00:39:24,360 --> 00:39:28,239 Speaker 1: he says himself that he's concerned about the lack of 714 00:39:28,280 --> 00:39:33,200 Speaker 1: civility I think at Yale, especially where they are outside 715 00:39:33,200 --> 00:39:37,040 Speaker 1: speakers who come who might be pretty conservative politically. In 716 00:39:37,640 --> 00:39:41,640 Speaker 1: some incidents have happened at Yale that troubled him, and 717 00:39:41,760 --> 00:39:46,280 Speaker 1: so he has said he will not consider Yale students 718 00:39:46,320 --> 00:39:50,320 Speaker 1: going forward, which is unfortunately regrettable, as his colleague Jerry 719 00:39:50,320 --> 00:39:55,000 Speaker 1: Smith said, who is equally conservative, but says he enjoys 720 00:39:55,280 --> 00:39:58,960 Speaker 1: hiring the Yale clerks and the recent ones have been excellent. 721 00:39:59,280 --> 00:40:05,280 Speaker 1: Do most conservative judges and conservative Supreme Court justices, higher 722 00:40:06,000 --> 00:40:10,960 Speaker 1: clerks who are conservatives, yes to some extent, but not exclusively, 723 00:40:11,760 --> 00:40:17,720 Speaker 1: and judges whom everyone respects, like Justice Scalia, often wanted 724 00:40:17,760 --> 00:40:22,160 Speaker 1: to have what one clerk called counter clerks who took 725 00:40:22,320 --> 00:40:26,360 Speaker 1: very different views. Professor Steinfeld, I think at Michigan was 726 00:40:26,400 --> 00:40:29,080 Speaker 1: saying he was such a clerk for Justice Scalia, and 727 00:40:29,080 --> 00:40:33,600 Speaker 1: they hardly ever agreed on anything politically. But he enjoyed 728 00:40:33,960 --> 00:40:37,640 Speaker 1: the back and forth, and I think Justice Scalia did too. 729 00:40:37,719 --> 00:40:41,279 Speaker 1: It may be counter productive to not have clerks, as 730 00:40:41,320 --> 00:40:44,279 Speaker 1: many judges like to do, who will take the opposite 731 00:40:44,480 --> 00:40:47,880 Speaker 1: perspective from the judge and sometimes went over the judge 732 00:40:47,920 --> 00:40:51,120 Speaker 1: on the argument to put in perspective. Some of the 733 00:40:51,160 --> 00:40:56,439 Speaker 1: Supreme Courts most conservative conservatives went to Yale. Clarence Thomas, 734 00:40:56,480 --> 00:41:02,360 Speaker 1: Samuel Alito, Brett Kavanaugh, Senator Josh Hall, very conservative JD. Vance, 735 00:41:02,440 --> 00:41:05,520 Speaker 1: even Stewart Rose, the leader of the oath Keepers, went 736 00:41:05,600 --> 00:41:09,560 Speaker 1: to Yale. So there are conservatives coming out of Yale, 737 00:41:09,760 --> 00:41:13,640 Speaker 1: and by doing this, the judges punishing them. Well, I 738 00:41:13,680 --> 00:41:17,120 Speaker 1: think that's true to some expend Judge Smith, his colleague 739 00:41:17,120 --> 00:41:19,279 Speaker 1: on the Fifth Circuits that I'm happy to hire them, 740 00:41:19,440 --> 00:41:22,480 Speaker 1: please send more. And I think a number of judges 741 00:41:22,520 --> 00:41:26,319 Speaker 1: feel very similarly. So it is regrettable and unfortunate for 742 00:41:26,360 --> 00:41:29,399 Speaker 1: the school and Ford students and the judges who may 743 00:41:29,400 --> 00:41:32,879 Speaker 1: not take excellent students because of that. Do you think 744 00:41:32,880 --> 00:41:36,719 Speaker 1: a student would ever turn down Yale Law School if 745 00:41:36,760 --> 00:41:41,720 Speaker 1: they were admitted because certain conservative judges would not take 746 00:41:41,760 --> 00:41:46,680 Speaker 1: them as clerks. I doubt. They probably have many, many opportunities, 747 00:41:47,040 --> 00:41:51,560 Speaker 1: And it's really the judges loss because they received such 748 00:41:51,600 --> 00:41:55,879 Speaker 1: a fine education and they're extremely well qualified, and so 749 00:41:56,000 --> 00:42:00,080 Speaker 1: they often write their own tickets anyway, And as Professor 750 00:42:00,080 --> 00:42:03,240 Speaker 1: Carl Tobias of the University of Richmond Law School speaking 751 00:42:03,239 --> 00:42:06,080 Speaker 1: with the Bloomberg's Doing Grosso, catch more of that interview, 752 00:42:06,120 --> 00:42:09,000 Speaker 1: plus analysis of the latest legal news by subscribing to 753 00:42:09,000 --> 00:42:12,400 Speaker 1: the Bloomberg Law Podcast. Are downloading the show at Bloomberg 754 00:42:12,440 --> 00:42:16,440 Speaker 1: dot com slash podcast. Attorneys can find exceptional legal research 755 00:42:16,440 --> 00:42:19,480 Speaker 1: and business development tools at Bloomberg Law dot com and 756 00:42:19,520 --> 00:42:23,279 Speaker 1: on the Bloomberg terminal at b law Go. Futures this 757 00:42:23,360 --> 00:42:27,120 Speaker 1: morning are moving lower. SMP futures down about nine points down, 758 00:42:27,120 --> 00:42:30,800 Speaker 1: futures down thirty, nowsday futures down forty h the decks 759 00:42:30,800 --> 00:42:33,560 Speaker 1: in Germany's up seven tenths of upper sent pen Your 760 00:42:33,600 --> 00:42:36,760 Speaker 1: treasury up nine thirty seconds here three point nine zero percent, 761 00:42:36,800 --> 00:42:39,000 Speaker 1: and they yield on the two year four point four 762 00:42:39,120 --> 00:42:42,760 Speaker 1: two percent, And Nimex screwede oil is down seven tenths 763 00:42:42,760 --> 00:42:46,400 Speaker 1: of a percent, and top stories straight ahead. This is 764 00:42:46,400 --> 00:42:47,000 Speaker 1: Bloomberg