Speaker 1: Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg
Speaker 1: day Break for Friday, October fourteen two. Coming up the Shower,
Speaker 1: Stocks Rise. Following the historic rally on Wall Street Banker
Speaker 1: Niece kick off this morning, Speculation grows the UK government
Speaker 1: will abandon its tax cut plan, and Twitter says Elon
Speaker 1: Musk is being investigated over his attempted acquisition. The January
Speaker 1: six Panel has voted to subpoena former President Trump lost.
Speaker 1: The shooting in the Raleigh, North Carolina neighborhood has left
Speaker 1: five dead. I'm Michael blomer More, I'm John Stashower and sports.
Speaker 1: The Yankees and Guardians played name two this afternoon. Either
Speaker 1: went for the Astros, the Rangers one the Devil's in
Speaker 1: Islanders Laws. That's all Train ahead on Bloomberg Daybreak on
Speaker 1: Bloomberg eleven three, on New York, Bloomberg ninety nine one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine
Speaker 1: sixties and Francisco Syrius x M one nine team and
Speaker 1: around the world Old on Bloomberg Radio dot Com and
Speaker 1: via The Bloomberg business Man. Good morning, I'm Nathan Hagar,
Speaker 1: and I'm Karen Moscow US Dock Index futures are lower
Speaker 1: this morning, with SMP future is down sixteen points down,
Speaker 1: futures down a hundred two, NASDAG futures down seventy seven.
Speaker 1: The decks in Germany is up six tents of percent.
Speaker 1: Ten year Treasury up seven thirties seconds. You're three point
Speaker 1: nine one percent and a yield on the two year
Speaker 1: four point four two percent. Nimex screwde oil is down
Speaker 1: three quarters of a percent. It's at eighty eight dollars
Speaker 1: forty two cents a barrel. Nathan Karen, We enter this
Speaker 1: final trading day of the week coming off a truly
Speaker 1: historic day. After falling two point four percent, the SMP
Speaker 1: five hundred reversed course and closed up two point six
Speaker 1: percent according to Bloomberg data, going back to never before
Speaker 1: as the market experienced such extreme readings in both directions
Speaker 1: in one day. Dave don Obedient, as chief investment officer
Speaker 1: at CIBC Private Wealth, Yeah, I don't think a day
Speaker 1: like this signifies a much at bottom. Obviously, we had
Speaker 1: a really strong market from mid June to mid August
Speaker 1: and it was just a bear market rally. But um, yeah,
Speaker 1: I think we're certainly closer to the end than the
Speaker 1: beginning of this bowl. Market Dave down Obedien at c
Speaker 1: IBC believes triggered automated buying helped fuel yesterday's turnaround, but
Speaker 1: the turnaround maybe short lived. Nathan Bank of America says
Speaker 1: stock markets in the US economy will have to experience
Speaker 1: more pain before the Fed pivots away from aggressive policy.
Speaker 1: Strategist at the Bank's sake quote, it was a decent
Speaker 1: counter rally, but Low's won't be reached until next year.
Speaker 1: They say more economic and market pain will be necessary
Speaker 1: before the Fed backs down. Well, Karen, the White House
Speaker 1: was grasping for upside after yesterday's inflation report that's core
Speaker 1: CPI rise to a forty year high. President Biden discussed
Speaker 1: the reading with reporters in Los Angeles. Americans are squeezed
Speaker 1: by the cost of living. It's been true for years,
Speaker 1: and folks don't need to be a report to fell
Speaker 1: them and be a squeeze. Fighting this battle every day
Speaker 1: is the key reason why I ran for president United States. However,
Speaker 1: President and Inviiden did note overall inflation was just two
Speaker 1: percent over the last three months. He said, quote that's
Speaker 1: down from eleven percent over the prior three months. Well
Speaker 1: over the weekend, Nathan the President conceded that a slight
Speaker 1: recession is possible, but one administration official notes that it's
Speaker 1: not inevitable. We spoke to US Commerce Secretary Gina Ramondo.
Speaker 1: I talked to CEOs of the biggest companies and the
Speaker 1: smallest companies every day in every industry. Yes, they're anxious.
Speaker 1: Global markets are unstable. The war in Ukraine obviously makes
Speaker 1: everything unstable. But they're also telling me customers are buying.
Speaker 1: Consumers are buying, they are still hiring, American companies are innovating.
Speaker 1: Commerce Secretary Gena Raimondo made the comments and an interview
Speaker 1: on Bloomberg Radio and television. Catch the full conversation online
Speaker 1: at Bloomberg dot com. No one of those CEOs does
Speaker 1: appear to have a more tepid outlook on the economy.
Speaker 1: Karen JP Morgan Chase CEO Jamie Diamond discussed inflation and
Speaker 1: the FED at a conference in Washington yesterday. I don't
Speaker 1: know if he could be a soft landing. I don't
Speaker 1: think so. But in my mild recession or tough recession.
Speaker 1: My point in the tough recession, yeah, you expect the market.
Speaker 1: I'm not gonna keep eyes across those three things. But
Speaker 1: for all of us who have to worry about risk, you,
Speaker 1: of course you should plant for those things. Jamie Diamond
Speaker 1: says his gut tells him the Federal Reserve will have
Speaker 1: to raise rates higher than four and a half percent
Speaker 1: in order to detain inflation. Well. Nathan Diamond's bank is
Speaker 1: among several schedule to kick off earning season today, and
Speaker 1: we get a preview from Bloomberg's Jeff Bellinger. By the
Speaker 1: time the markets opened this morning, investors will have heard
Speaker 1: from JP Morgan, Chase, City Group, Morgan Stanley, and Wells Fargo.
Speaker 1: Investors will be interested in the results from the last quarter,
Speaker 1: but they'll likely be even more interested to hear what
Speaker 1: banking executives expect going forward. Bloomberg says the big banks
Speaker 1: will announce they're setting aside billions of dollars to protect
Speaker 1: against expected loan losses as growing numbers of customers get
Speaker 1: squeezed by inflation and high interest rates. Jeff well Inger,
Speaker 1: Bloomberg Daybreak, Thanks Jeff. We also get more economic data
Speaker 1: this morning in the form of retail sales and consumer sentiment,
Speaker 1: with more on that is Bloomberg's Inney del Judais. The
Speaker 1: prior report covering August showed US retail sales rebounded from
Speaker 1: the July slump. Bloomberg Economics as today's data will most
Speaker 1: likely indicates spending on consumer goods move toward pre pandemic
Speaker 1: levels in September. That's taking inflation into account. Also today,
Speaker 1: the University of Michigan issues it's US consumer Sentiment and
Speaker 1: next for early October, and Bloomberg Economics anticipates another sluggish reading.
Speaker 1: The sentiment index set a record low earlier in the year.
Speaker 1: We eat Dealt Judas Bloomberg daybreak right, Benny, thank you.
Speaker 1: In Europe this morning, speculation is growing the UK government
Speaker 1: will abandon its plans for massive tax cuts. And let's
Speaker 1: go live to London and get the latest from Bloomberg's
Speaker 1: James Wilcock, Good morning, James, Good morning Kowen. Nathan Decas
Speaker 1: Chancellor quasi class said to London, London in the next hour,
Speaker 1: un especially cut in short his trip to Washington, UK
Speaker 1: ask that's the stage a comeback on the news. It's
Speaker 1: try to act a youth sound is down the right.
Speaker 1: The yield Antenia bonds pledged to be a full presentment
Speaker 1: of the market opens and it all comes as the
Speaker 1: Bank of England to rap up their emergency bond buying program.
Speaker 1: Late today in London, James Wilcock, Bloomberg day Break, James,
Speaker 1: thank you, And in Corporate News this morning, lawyers for
Speaker 1: Twitter say Elon Musk is being investigated by authorities over
Speaker 1: his attempt to take Twitter private. We get the details
Speaker 1: from Bloomberg's Doug Prisoner. In April, the SEC sent a
Speaker 1: query to Musk over how he initially disclosed his nine
Speaker 1: percent stake in Twitter. He did so a week later
Speaker 1: than regulations allow, and he used a filing typically reserved
Speaker 1: for passive investors. Then in June, the SEC wanted information
Speaker 1: on Musk tweeting the deal cannot move forward until he
Speaker 1: was given more information about spam and fraudulent accounts. Now
Speaker 1: in a court filing in Delaware, Twitter's lawyers say Musk
Speaker 1: has exchanged substantive correspondence with federal authorities as they look
Speaker 1: into his conduct, and they say, this game of hide
Speaker 1: the ball must end. In New York, I'm Doug Prisner,
Speaker 1: Bloomberg day Break, Right, thank you, and Bloomberg Gay Break
Speaker 1: is brought to you by SEI. Acid managers don't get
Speaker 1: results that are off the charts when their solutions are
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Speaker 1: slash Tech Straight to head, your latest local headlines, plus
Speaker 1: a check of sports, and this is Bloomberg. All right, Karen,
Speaker 1: thanks a lot. It is five oh seven on Wall
Speaker 1: Street where fifty three degrees in Central Park and dealing
Speaker 1: with an accident in Queen's westbound Jackie Robinson Parkway at
Speaker 1: Metropolitan Avenue. Details coming up in traffic. First Michael Barr
Speaker 1: with more on what's going on in New York and
Speaker 1: around the world. Happy Friday, Michael, Happy Friday to you, Nathan.
Speaker 1: The final January six Committee hearing's theme was that Donald
Speaker 1: Trump began the plan to stay in office as early
Speaker 1: as July Bloomberg, said Baxter, as the story to remain
Speaker 1: no matter what the vote showed in November. Coach are
Speaker 1: List Cheney says, what's left we must seek the testimony
Speaker 1: under oath of January six Central player Donald Trump, followed
Speaker 1: by a unanimous vote to subpoena from the committee. Meanwhile,
Speaker 1: the Supreme Court has refused to get involved in Trump's
Speaker 1: request to return seized documents from our lago. It also
Speaker 1: refused to reinstate a special master. A major victory for
Speaker 1: the Department of Justice in San Francisco. I'm at Baxter,
Speaker 1: Bloomberg Daybreak ed Baxter. Connecticut Governor Need Lamont has ordered
Speaker 1: flags flown at half staff in the state after three
Speaker 1: officers were shot in the line of duty in Bristol.
Speaker 1: Two of the officers are dead. Governor Lamont said there
Speaker 1: are too many illegal guns and not enough cops on
Speaker 1: the streets. I hope when you see your policeman woman
Speaker 1: on the street corner, you go up and say thank
Speaker 1: you for what you do. I hope you show a
Speaker 1: little respect for the folks that are there. Governor Lamont.
Speaker 1: State Police said in a release that the nine one
Speaker 1: one call Wednesday night about the dispute between two siblings
Speaker 1: appears to have been a deliberate act lower law enforcement
Speaker 1: to the scene in Bristol. In North Carolina, Raleigh police
Speaker 1: say a male juvenile is in custody hours after a
Speaker 1: mass shooting that left five people dead, including an off
Speaker 1: duty police officer, in the neighborhood. Raleigh Mayor Maryanne Baldwin
Speaker 1: praise the responding officers, saying they put their lives at
Speaker 1: a risk to protect the city. You know, you pray
Speaker 1: that something like this will never happen here. It did,
Speaker 1: and I want to thank all the officers who responded
Speaker 1: in the way they did. Raleigh Mayor Baldwin. Police say
Speaker 1: there is no word on a motive. North Korea has
Speaker 1: fired yet another ballistic missile. This launch came as North
Speaker 1: Korea also flew war planes near the border with South Korea.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than journalists and analyst
Speaker 1: more than a hundred twenty countries. Michael Varren, this is Bloomberg, Nathan.
Speaker 1: Thanks Michael five o nine on Wall Street. Time for
Speaker 1: the Bloomberg Sports Update. Good morning, John Stashow, All right,
Speaker 1: good morning, Nathan. Yankees and Guardians. Two days off between
Speaker 1: games one and two, but set to go one o'clock
Speaker 1: at the stadium, so unless there's another rain out, no
Speaker 1: more days off. The rain was expected and Aaron Bruin
Speaker 1: was asked before and the effect of a postponement, and
Speaker 1: it would probably affect the pitching rotation if you went
Speaker 1: five games and you had to play four in a row. Sure,
Speaker 1: Um the lineup, No, I mean we play, that's what
Speaker 1: you do is in baseball as you play every day,
Speaker 1: So shouldn't affect that. Um, you know, that's more who
Speaker 1: we're going up against, matchups things like that. Today starts,
Speaker 1: yes the court Shane Bieber for Cleveland. Houston's up to nothing.
Speaker 1: In the other a l d S, the Astros had
Speaker 1: their slugger You're Don Alvarez to fact you get the
Speaker 1: game winning three run over in game one, he hit
Speaker 1: the go ahead two run shots six, inning the game
Speaker 1: to a four two Astros win over Seattle two game threes.
Speaker 1: Today tonight in the n LDS, both series tied to one.
Speaker 1: Week six underway in Chicago, Washington won twelve to seven
Speaker 1: and to four game losings. The only Commander's touchdown scored
Speaker 1: by rookie running back Brian Robinson, who has made a
Speaker 1: remarkable comeback. In August, he was shot twice in the
Speaker 1: leg in attempted robbery in DC. Jetson Giants looked to
Speaker 1: keep their winning ways going Sunday to Jets visit Green
Speaker 1: Bay Giants home for Baltimore and the Giants punter is
Speaker 1: back home safety. The native Scott Jamie Gillen was unable
Speaker 1: to fly home with the team do a visa issue.
Speaker 1: He was staying at an airbnb in London. Rangers already
Speaker 1: two and oh they wont seven three at Minnesota. Chris Cryer,
Speaker 1: the big season last year, scored his first two of
Speaker 1: the year, the first and last Ranger goals Islander season
Speaker 1: opener three one Home lost the Floorida. The Devil's lost
Speaker 1: five to a Philadelphia John Stashward, Bloomberg Sports, Nathan all Right, John,
Speaker 1: thank you. SMP. Futures are moving lower down thirteen points down.
Speaker 1: Futures down, nastack. Futures down sixty two points ten. Your
Speaker 1: treasuries up six thirty seconds yield three point nine one percent.
Speaker 1: As we await bank earnings this morning, we'll get a
Speaker 1: preview next with Bloomberg. Shinali Bassk. This is Bloomberg, Bloomberg
Speaker 1: eleven three oh. Weather. Rain will end this morning, It'll
Speaker 1: turn clear this afternoon. Upper sixties for highs sunny near
Speaker 1: seventy Tomorrow, partly sunny, upper sixties for Sunday. Right now,
Speaker 1: Claudie in fifty three in Central Park Markets, Headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business atand at Bloomberg Quicktape. This is a
Speaker 1: Bloomberg Business Flash and I'm Karen Moscow. And US dot
Speaker 1: Index futures are moving lower this morning, while equities in
Speaker 1: Europe are extending a rebound that saw US stocks were
Speaker 1: back from losses sparked by a hot inflation rating. We
Speaker 1: checked the markets every fifteen minutes throughout the trading day
Speaker 1: on Bloomberg, and P futures are down twelve points down,
Speaker 1: Future is down eighty five. Nowesdays futures down fifty eight.
Speaker 1: The Daks in Germany up six tents of a percent.
Speaker 1: Ten your treasury at five thirty seconds, you're three point
Speaker 1: nine two f cent. The yield on the two year
Speaker 1: four point four three percent. Nine X Screwed oil is
Speaker 1: down half percent or forty four cents at eighty eight
Speaker 1: dollars sixty seven cents of barrel comes goaled down three
Speaker 1: quarters of a percent or twelve dollars forty cents at
Speaker 1: sixty and sixty four sixty an ounce. The euro point
Speaker 1: nine seven four four against the dollar. British found one
Speaker 1: point one two seven zero and the end one forty
Speaker 1: seven point six eight and Bitcoin this morning is at
Speaker 1: one point one percent and nineteen thousand, six hundred dollars.
Speaker 1: It is a busy day for earnings a big Wall
Speaker 1: Street banks reporting including JP, Morgan Chase, and City Group.
Speaker 1: He also get a report on September retail sales at
Speaker 1: eight thirty Wall Street Time as a Bloomberg Business Flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Munchael, Good morning, Good morning, Karen. The
Speaker 1: House January six Committee voted unanimously to subpoena former President
Speaker 1: Donald Trump for his testimony about the one Capital attack.
Speaker 1: Earlier in the hearing, the panel presented new video of
Speaker 1: final speaker Nancy Pelosi and other congressional leaders pleading for help.
Speaker 1: It also outlined Trump's multipart plan to overturn his election loss.
Speaker 1: President Joe Biden again criticized high US gas prices and
Speaker 1: said he'd announced new actions to combat what he described
Speaker 1: as a key driver of inflation. In baseball, the Yankees
Speaker 1: will play the Guardians in Game two of the a
Speaker 1: LDS after last night's rain out. The Astros lead two
Speaker 1: games to zip over the Mariners in their a lbs
Speaker 1: after last night's four to win. In the NHL, the
Speaker 1: Rangers won, the Devil's Islanders and Capitals all lost. Thursday
Speaker 1: night football, the Commanders beat the Bears in an action
Speaker 1: back game twelve seven Sorry too soon. Global News twenty
Speaker 1: four hours a day on airand on Bloomberg Quick Take
Speaker 1: Forward by more than journalists analysts more than twenty countries.
Speaker 1: I'm Michael bar this is Bloomberg NA. If you love
Speaker 1: defense Man, what a game. Thank you, Michael. We're coming
Speaker 1: up to five twenty on Wall Street Live from the
Speaker 1: Blue Brig Interactive Broker Studios. This is Bloomberg Daybreak, and
Speaker 1: Karen said it, this is a busy day for bank earnings.
Speaker 1: We're gonna hear from four of the big six Wall
Speaker 1: Street firms and starting in just a couple of hours
Speaker 1: here Bloomberg Global Finance correspondent Shannelly Bassic's been up all
Speaker 1: night getting ready for these earnings. I'm sure joining us
Speaker 1: live this morning. So we got JP Morrigan, Wells, Fargo, Morgan,
Speaker 1: Stanley City Group all opening their books this morning, Shanally.
Speaker 1: And we've already heard from JP Morgan's Jamie Diamond doubling
Speaker 1: down on The idea that a recession is coming makes
Speaker 1: you wonder how much these banks are preparing for this
Speaker 1: and whether we're going to see it play out in
Speaker 1: the earnings. It's true because you have two things going
Speaker 1: on at the same time. One Wall Street is expecting
Speaker 1: these banks to start provisioning at a greater rate for
Speaker 1: loan losses as they expect the economy to get worse.
Speaker 1: The question is how much are they factoring in now
Speaker 1: at the end of the third quarter into the fourth quarter.
Speaker 1: Is it going to get worse from here? Are they're
Speaker 1: going to need to add more provisions as time goes on.
Speaker 1: The other thing about it is Jamie Diamond, and you
Speaker 1: heard him talk about this a lot, having to really
Speaker 1: uh boost their regulatory burdens here and how old more
Speaker 1: capital due to to do to rules that he feels
Speaker 1: is arbitrary here. That from him a lot. But you know,
Speaker 1: the issue here is are the bank's gonna constrain lending
Speaker 1: in the face of higher interest rates. It's a double
Speaker 1: edged sword here they're really facing. And I mean that's
Speaker 1: the story that we've been seeing over the last few
Speaker 1: quarters here coming out of the pandemic. This idea of
Speaker 1: provisioning for loan losses. The banks have been doing it
Speaker 1: for months now. We've seen the stocks get hammered throughout
Speaker 1: this year. I mean, how much more loan provision can
Speaker 1: they do? Is there a possibility that we could see
Speaker 1: some kind of surprise when it comes to that? We
Speaker 1: sure can. Right now the street is expecting one point
Speaker 1: two billion dollars worth of provisions over at JP Morten.
Speaker 1: The other thing I would watch for is if charge
Speaker 1: offs start to rise and loan quality therefore starts to deteriorate.
Speaker 1: People are worried about credit cards, for example, but I
Speaker 1: say in the face of higher interest rates, because the
Speaker 1: banks want to be lending right now because they're making
Speaker 1: more money from doing so. However, they are worried about consumers.
Speaker 1: They are worried about credit quality, and are we going
Speaker 1: to hear a little bit more of that? Well not.
Speaker 1: Another thing Jamie Diamond said yesterday in Washington at the
Speaker 1: International Institute of Finance was that consumers are fine now,
Speaker 1: but there could be a bit of a six and
Speaker 1: nine month lag here in terms of that total inflation
Speaker 1: impact on their wallet. Yeah, it's been kind of a
Speaker 1: mixed picture, hasn't it. When it comes to the consumer.
Speaker 1: You mentioned Jamie Diamond's comments. I know we're not going
Speaker 1: to hear from Bank of America until Monday, but we've
Speaker 1: also heard from the CEO there, Brian moynihan, saying that
Speaker 1: the consumer for the most part, is remaining resilient through this.
Speaker 1: Where do you expect some of that consumer lending story
Speaker 1: to particularly play out in the results we get today.
Speaker 1: There's gonna be a huge focus on mortgages, and that
Speaker 1: has been the case. The other question is consumers are
Speaker 1: not feeling higher savings rates very meaningfully, so are the
Speaker 1: banks going to start doing that? And now that rates
Speaker 1: are higher? I would also say that a lot of
Speaker 1: the stress is not even even us on the consumer side.
Speaker 1: It's also on the side of large investors in large corporations.
Speaker 1: People are worried about credit spreads and where they go
Speaker 1: from here. People are also worried about markdowns tied to
Speaker 1: leverage loans. There's already been about two billion dollars of
Speaker 1: markdowns globally after the second quarter, but things have gotten
Speaker 1: worse since then, and there's some large deals the banks
Speaker 1: have to contend with Twitter, Citrix, Nielsen where they might
Speaker 1: have to mark down hundreds of millions more. Where do
Speaker 1: you think things are going to play out when it
Speaker 1: comes to the trading desks. There's been so much volatility
Speaker 1: in this market. I mean we saw it just yesterday
Speaker 1: and could the trading desks kind of come to the rescue. Well,
Speaker 1: that's been the case most of last year into this year,
Speaker 1: and even during the pandemic as an activity really boosted
Speaker 1: in terms of underwriting and new issue and really fixed
Speaker 1: income trading and currencies and commodities also held up. But
Speaker 1: now they're clients, The bank's clients are under a lot
Speaker 1: more pressure, and you don't see that same try to
Speaker 1: it's kind of trading tailwind that they had just over
Speaker 1: the last several months. Really it's already started to wane,
Speaker 1: and there's an expectation that it starts to have more
Speaker 1: fractures in it as you see even parts of the
Speaker 1: more healthy businesses come under pressure. If mortgages in the
Speaker 1: real economy are under pressure, and there's more problems in
Speaker 1: that market. Frankly, the trading of mortgages is also a
Speaker 1: question mark. Lots to pass through as we get ready
Speaker 1: for those earnings starting with JP Morgan and Wells Fargo
Speaker 1: do out around seven am Wall Street time, then Morgan
Speaker 1: Stanley follows and City Group for the Big Six getting
Speaker 1: earning season kicking off here on Wall Street. Bloomberg Global
Speaker 1: Finance correspondent Shinelli Bask, thanks for being here this morning
Speaker 1: as we await those results. Looking ahead to the market,
Speaker 1: open futures are moving a bit lower. SMP futures down
Speaker 1: ten points, STAFF futures down sixty nine, NASTAC futures are
Speaker 1: lower by fifty four points ten. Your treasury is up
Speaker 1: six thirty seconds, the yield three point nine one. You're
Speaker 1: listening to Bloomberg Daybreak Bloomberg eleven three oh. Weather clearing
Speaker 1: this afternoon. We'll get up to the upper sixties, sunny
Speaker 1: near seventy tomorrow. By Sunday will be in the upper
Speaker 1: sixties once again under a partney sunny sky. Current semperature
Speaker 1: in Central Park fifty three degrees. Broadcasting live from the
Speaker 1: Bloomberg Interacted Broker Studio in New York. Bloomberg E Living
Speaker 1: Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one
Speaker 1: All six one to San Francisco Bloomberg and M sixty
Speaker 1: to the Country Sirius XM Chado one nine tea and
Speaker 1: around the globe, the Bloomberg Business APT and Bloomberg Radio
Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on
Speaker 1: Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow.
Speaker 1: Were just about four hours away from the open of
Speaker 1: US trading. Let's get you up to date on the news.
Speaker 1: You need to know what this sour. We enter the
Speaker 1: week's final trading session coming off a volatile day. The
Speaker 1: S and P fell two point four percent after yesterday's
Speaker 1: CPI reading, only to close up two point six percent.
Speaker 1: Data going back to has never seen such extreme readings
Speaker 1: in both directions in a single day. Lori Calvacino's head
Speaker 1: of US equity strategy at RBC Capital Markets, you have
Speaker 1: to really look stock by stocks, sector by sector, different
Speaker 1: parts of the market, figure out where you think most
Speaker 1: of the bad news is baked and where you want
Speaker 1: to be for the longer term, and start layering in
Speaker 1: and it may go down more before it goes back up.
Speaker 1: Lori Calvasino with RBC says we likely have not seen
Speaker 1: a bottom yet. She expects volatility to continue as the
Speaker 1: FED keeps hiking rates and yesterday's turnaround maybe short lived, Karen.
Speaker 1: That's according to the Bank of America. The firm strategists
Speaker 1: say stock markets and the US economy will have to
Speaker 1: experience more pain before the Fed pivots away from aggressive tightening.
Speaker 1: They don't expect the bottom until next year. The White House,
Speaker 1: Nathan Meantime, was grasping for upside after US inflation rose
Speaker 1: to a forty year high last month, and President Biden
Speaker 1: spoke to reporters in Los Angeles, we also need to
Speaker 1: make more progress bringing down the prices across the board.
Speaker 1: That's why I just couldn't disagree more of my Republican
Speaker 1: friends who say the biggest problem on our economy right
Speaker 1: now is it working. Folks are making too much money.
Speaker 1: President Biden also says too many Americans are being squeezed
Speaker 1: by the current cost of living, though he notes overall
Speaker 1: inflation was just two percent over the past three months.
Speaker 1: Let's talk corporate earnings now, Karen, JP. Morgan City Group,
Speaker 1: Morgan Stanley, and Wells Fargo all report before the market
Speaker 1: opens today. Banks are expected to post the biggest profit
Speaker 1: decline of any sector this quarter, as analysts turned sour
Speaker 1: on the outlook for financials. Outside of results, will be
Speaker 1: watching for how much cash firms are setting aside for
Speaker 1: potentially bad loans turning overseas. Nathan's speculation is growing the
Speaker 1: UK government will abandoned its plans for massive tax cuts.
Speaker 1: Chancellor Quasi Quar Tang is heading home early from I
Speaker 1: m F meetings in Washington as the Bank of England
Speaker 1: ends its emergency bond buying program today. He spoke with
Speaker 1: former bo E member Martin Wheeley about the move. Andrew
Speaker 1: Bailey has given some thought to the question of what
Speaker 1: help might be needed next week and in what circumstances
Speaker 1: that could probably be done without continuing the current scheme
Speaker 1: in operation. Former Bank of England member Martin Wheeley says
Speaker 1: reversing the plan for massive tax cuts would restore the
Speaker 1: UK government's credibility. Futures this morning are lower S and
Speaker 1: P futures are down sixteen points and straight ahead we
Speaker 1: have your latest local headlines plus a check of sports
Speaker 1: and this is Bloomberg. Thanks on Wall Street fifty three
Speaker 1: degrees in Central Park Still didn't with that crash wise
Speaker 1: found Jackie Robinson Parkway Metropolitan Avenue. Michael Bars here with
Speaker 1: what else is going on in New York and around
Speaker 1: the world. Michael, thank you very much, Nathan. The House
Speaker 1: committee investigating last year's attack on the US Capitol voted
Speaker 1: to subpoena Donald Trump. The committee and a unanimous vote
Speaker 1: agree to demand documents and testament on me from Trump
Speaker 1: about his role in the January sixth attack. Committee chairman
Speaker 1: Bennie Thompson, he is the one person at the center
Speaker 1: of the story of what happened on January six so
Speaker 1: you want to hear from him. In a post on
Speaker 1: his Truth social platform overnight, Trump said, I will be
Speaker 1: putting out my response to the Unselect Committee of Political
Speaker 1: Hacks and Thugs tomorrow morning at eight am. Authorities in
Speaker 1: the Connecticut say to Bristol police officers who were shot
Speaker 1: dead had apparently been drawn into an ambush by an
Speaker 1: emergency call about possible domestic violence. The third officer was
Speaker 1: wounded in the gunfire. Late Wednesday night, Governor Need Lamont
Speaker 1: said there are too many illegal guns and not enough
Speaker 1: cops on the streets. It's just a reminder what the
Speaker 1: men in blue, men and women in blue do every
Speaker 1: day on our behalf to keep us safe and the
Speaker 1: risk they take. Governor Lamont ordered all US and state
Speaker 1: flags Lord to half staff a you are opened fund.
Speaker 1: They are along a walking trail in a Raleigh, North
Speaker 1: Carolina neighborhood, killing an off duty police officer and four others.
Speaker 1: Police say the suspect led police on an hour's long
Speaker 1: man hunt before he was cornered in a home and arrested.
Speaker 1: North Carolina Governor Roy Cooper said terror has come to running.
Speaker 1: This is a senseless, horrific, an infuriating active violence that
Speaker 1: has been committed. Authorities would only describe the suspected shooter
Speaker 1: as a white male juvenile. Florida jury rejected the death
Speaker 1: penalty for the person responsible for the Parkland Schools shooting
Speaker 1: that left seventeen students and staff dead. The jury instead
Speaker 1: recommended the sentence of life without parole. Many family members
Speaker 1: of the victims were stunned. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven hundred journalists and analysts more than
Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan,
Speaker 1: Thanks Michael on Wall Street. Time for the Bloomberg Sports
Speaker 1: Update with John Sennshower. All right, Nat the day baseball
Speaker 1: in the Bronx one o'clock start today, Yankees Guardians game too,
Speaker 1: Estra Cortez, Shane Bieber. Last night's rain now means no
Speaker 1: more off days in the series. Astros and Mariners Game
Speaker 1: two in Houston. Seattle, who blew a four one lead
Speaker 1: in Game one, had a lead sixth in a one
Speaker 1: albats huntas just want to let Phil just said good
Speaker 1: five and the late this Crawford boxes Britty, so you're
Speaker 1: not does it again? Baby Amy Albert has had the
Speaker 1: walk off free run shot to win the opener. Astros
Speaker 1: won four to lead the series to nothing. Game three
Speaker 1: tomorrow will be the first postseason game in Seattle in
Speaker 1: twenty one years. This afternoon is the first one in
Speaker 1: Philadelphia in eleven years. Phillies and Brains retied at once,
Speaker 1: so the Dodgers and Padres. They played tonight in San Diego.
Speaker 1: The day began for the Washington Commanders with an explosive
Speaker 1: ESPN report of the team's owner Dan Snyder has not
Speaker 1: been forced out by fellow owners because he has dirt
Speaker 1: on several of them and on Commissioner Roger Goodell, and
Speaker 1: that he can quote blow up the NFL if they
Speaker 1: try to force them out. Snyder has already been fined
Speaker 1: and suspended for his actions as team owners. The Commanders
Speaker 1: then played the Thursday Night Gave in Chicago. They held
Speaker 1: on to win twelve to seven. Bears at a first
Speaker 1: and goal to Washington five in the final minute, but
Speaker 1: couldn't score. Both teams are two and four. Rangers are
Speaker 1: two and oh seven three Route in Minnesota three goals
Speaker 1: in the first period, three more in the third. Islanders
Speaker 1: opener was a three one home loss the Floorida. The
Speaker 1: Devil's gave up four straight goals. They lost five to
Speaker 1: at Philadelphia. Nicks and Nets have their preseason finales tonight.
Speaker 1: Nicks host Washington, the Nets to visit in Minnesota. John
Speaker 1: Stash Howard Bloomberg Sports Nathan Thank you, John seven on
Speaker 1: Wall Street time for the Trice State Business Report with
Speaker 1: Bloomberg stot Car construction started on Hatch Life Sciences Longfellow
Speaker 1: Real Estate Partners New Life Sciences facility on twenty third
Speaker 1: Street in Queens, New York. Business Journal reports the developers
Speaker 1: anticipating a two hundred twenty five million dollar investment into
Speaker 1: the property. Twenty four technology and biotech companies still in
Speaker 1: their building and investing Stages have been approved to participate
Speaker 1: in New Jersey's Net Operating Loss Program. They are a
Speaker 1: prooved to receive a total of a combined seventy five
Speaker 1: million dollars to fund working capital or R and D.
Speaker 1: The program enables participants to sell their net operating losses
Speaker 1: and unused R and D tax credits to unrelated profitable
Speaker 1: companies for cash. Brokers Frederick Ekland and John Comes expect
Speaker 1: to sell out their newest condo development in Manhattan's Greenwich
Speaker 1: Village before a single unit is formally put on the market.
Speaker 1: The pair and anticipate that even with home sales slowing
Speaker 1: in New York, buyers will quickly snap up all twenty
Speaker 1: eight apartments at sixty four University Place. That's the Bloomberg
Speaker 1: Tri State Business Report. I'm Scott Carr. Thank you, Scott
Speaker 1: on Wall Street. Bloomberg Radio is on the air from
Speaker 1: San Francisco to New York, London to Hong Kong. Let's
Speaker 1: check in with our global news team for some of
Speaker 1: the top stories heard on our three hundred affiliate radio
Speaker 1: stations around the world. I'm Steve Podas kan K and
Speaker 1: X in Los Angeles. We're talking about Littell unveiling a
Speaker 1: Tina Turner Barbie doll as part of its music series.
Speaker 1: I'm Corney's Dona Hellan ktr H in Houston mortgage rate
Speaker 1: search to the highest in twenty years at six point
Speaker 1: nine on Gina Servetti. And for w c CEO in Minneapolis,
Speaker 1: I'm reporting a Twin Cities area inflation is rising at
Speaker 1: a slower pace than the national rate. I'm Scott Carr
Speaker 1: w w J in Detroit term reporting a on the
Speaker 1: first new development at Detroit City Airport in thirty years.
Speaker 1: Those are some of the stories our twenty seven hundred
Speaker 1: Bloomberg journalists and in less working on this morning around
Speaker 1: the world. It's five thirty nine on Wall Street. The
Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was
Speaker 1: written by the Bloomberg Editorial Board in Beijing. Next week,
Speaker 1: Shijin Ping will almost certainly claim a third term as
Speaker 1: head of the ruling Communist Party, cementing his status as
Speaker 1: the most powerful Chinese leader since Mao Zedong. The precedents
Speaker 1: shattering move is fraught with risks, from economic instability at
Speaker 1: home to adventurism abroad. To guard against them, the US
Speaker 1: must remain disciplined and focused on building up its own strengths.
Speaker 1: That means bolstering its defenses against economic disruptions, for example,
Speaker 1: by continuing to reduce dependence on Chinese supply chains. The
Speaker 1: US also should embrace the advantages of its more open
Speaker 1: system rather than trying to emulate China's command economy. By
Speaker 1: clinging to power, she is leading China into uncharted territory.
Speaker 1: That's all the more reason for the US to maintain
Speaker 1: a steady course. This editorial was written by the Bloomberg
Speaker 1: Editorial Board. For more Bloomberg opinion, please go to Bloomberg
Speaker 1: dot com, slash opinion or OPI N go on the
Speaker 1: Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg
Speaker 1: opinion editorials every weekday. At this time, terminal customers can
Speaker 1: read more at O P I N. Gold futures are
Speaker 1: adding to their declines now we have SMP futures down
Speaker 1: fourteen points, STAFF futures down nineties seven NASDAK futures down
Speaker 1: seventy one points. We'll talk about the wild swings in
Speaker 1: this market next with Andrew Sheets, chief cross assets strategist
Speaker 1: at Morgan Stanley. This is Bloomberg Bloomberg eleven three oh
Speaker 1: weather clearing this afternoon, We'll get up to the upper
Speaker 1: sixties today, sunshine high near seventy to start the weekend.
Speaker 1: Tomorrow will be partly sunny Sunday with highs in the
Speaker 1: upper sixties once again. Right now fifty three in Central
Speaker 1: Park Markets. Headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot com, the Bloomberg Business apt and
Speaker 1: at Bloomberg Quick Tape. He's a Bloomberg Business large and
Speaker 1: I'm camera in Moscow. This updates brought to you by SEI,
Speaker 1: built on advanced technologies and fifty years of innovation. SEI
Speaker 1: offers at A managers are comprehensive and flexible operations outsourcing platform.
Speaker 1: Go to s i C dot com slash managers. And
Speaker 1: futures this morning are lower. SMP futures down about nineteen
Speaker 1: points and now features down a hundred twenty seven and
Speaker 1: NASDAC futures down ninety three. The ten year treasury of
Speaker 1: seven thirties seconds yield three point on one percent, and
Speaker 1: they yield on a two year four point for three percent.
Speaker 1: And bitcoin is at nineteen thousand, six hundred dollars. That's
Speaker 1: up one point one percent. That's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael Karen, thank you very much. The
Speaker 1: House January six Committee wrapped up yesterday's public hearing with
Speaker 1: the call to subpoena former President Trump. Trump responded saying
Speaker 1: the Unselect Committee is a giant scam presided over by
Speaker 1: a group of radical left losers and two field Republicans. Meanwhile,
Speaker 1: former President Trump has suffered another setback in the Mara
Speaker 1: Lago documents investigation. The Supreme Court has refused to get
Speaker 1: involved in a dispute over whether a third party should
Speaker 1: review those classified documents seized by the FBI. In baseball,
Speaker 1: the Yankees will play the Guardians in Game two of
Speaker 1: the A l B S after last night's rain out.
Speaker 1: The Astros lead two games to zip over the Mariners
Speaker 1: in their A l B S. After last night's Sports
Speaker 1: You Win. Thursday Night Football, the Commanders beat the Bears
Speaker 1: twelve seven. In the NHL, the Rangers won, the Devil's
Speaker 1: Islanders and Capitals all lost. Global News twenty four hours
Speaker 1: a day on here and on Bloomberg Quick Take, powered
Speaker 1: by more than seven hundred journalists and analyists more than
Speaker 1: a hundred twenty countries. I'm Michael Barr, and this is
Speaker 1: Bloomberg Nathan. Thanks Michael. We're coming up to five forty
Speaker 1: nine on Wall Street Life from the Bloomberg Interactive Broker Studios.
Speaker 1: This is Bloomberg Daybreak. We're very pleased to be joined
Speaker 1: this morning by Andrew Sheets, chief cross Assets strategist at
Speaker 1: Morgan Stanley, as we try to assess these wild swings
Speaker 1: in the market. Uh, Andrew, good morning. We know from
Speaker 1: data going back as far as Bloomberg has been around
Speaker 1: that there's never been an intra day move like what
Speaker 1: we saw yesterday in the SMP five. What was behind that?
Speaker 1: Good morning? Well, I think what we are dealing with
Speaker 1: is just another extraordinary data point in an extraordinary year.
Speaker 1: You know, this year is the first year that you've
Speaker 1: seen both equities and bonds down more than ten percent,
Speaker 1: you know, going back over the last almost a hundred years.
Speaker 1: So we we need to get used to. We have
Speaker 1: gotten used to on precedented moves. But I think another
Speaker 1: you know, thing that we need to keep in mind
Speaker 1: is that in bear markets, and I think we are
Speaker 1: still in a bear market. You two, you do tend
Speaker 1: to get these quite violent reversals. And so if we
Speaker 1: look back to prior reversals of close to this, we
Speaker 1: saw a number in two thousand and two, we saw
Speaker 1: some in two thousand and eight. So while it's welcome
Speaker 1: that we saw some relief, I think it it doesn't
Speaker 1: necessarily change the broader backdrop. Well, when you say we
Speaker 1: have to get used to these kinds of wild moves,
Speaker 1: dig into that a little bit more. What do you
Speaker 1: mean by that? How much longer do you think we
Speaker 1: have to get used to this kind of volatility? Well,
Speaker 1: I ironically, you know that the data point that I
Speaker 1: think people were pointing to yesterday that was associated with
Speaker 1: with the rally in the market, this upside surprise to inflation,
Speaker 1: I think is actually still a driver of that volatility.
Speaker 1: I think as long as core inflation is surprised into
Speaker 1: the upside, as long as core inflation is still uncomfortably
Speaker 1: high for the FED, the FED and other central banks
Speaker 1: by extension can't pivot and can't provide the type of
Speaker 1: relief that I think markets are are hoping. And so
Speaker 1: you know, when we think about the market backdrop, I
Speaker 1: think it's still a sequencing issue. First, the market needs
Speaker 1: to get comfortable that rate volatility is coming down. Then
Speaker 1: markets need to get comfortable with the level of economic volatility.
Speaker 1: And I think we're still going through that first part.
Speaker 1: So I think until we start to see some more
Speaker 1: relief on the on the inflation front, which again we
Speaker 1: didn't get this month, I think we still face heightened
Speaker 1: uncertainty in the backdrop. Now we saw traders pretty much
Speaker 1: a price seventy five basis point move next month. What's
Speaker 1: your thinking on where the Fed goes in subsequent meetings.
Speaker 1: Are we looking at even more jumbo sized rate hikes
Speaker 1: on the back of that inflation print. Yeah, so, so
Speaker 1: we we do think that this makes you a seventy
Speaker 1: five basis point rate hike quite likely. And I think
Speaker 1: the challenge here is that, you know, this is the
Speaker 1: second straight CPI report that's been well above consensus expectations,
Speaker 1: and so I think as long as we're seeing that tattern,
Speaker 1: the FED will be under more pressure or the market
Speaker 1: will certainly think it's more likely that the Fed errors
Speaker 1: on the side of caution. So our our interest rate
Speaker 1: strategist of Organ Stanley have been of the view that
Speaker 1: the curve will invert more that we'll see the one
Speaker 1: year rate underperformed the ten year rate, and that's a
Speaker 1: function of the market, you know, potentially just assigning more
Speaker 1: risk premium to a higher terminal rate for Fed funds
Speaker 1: as we get these upsides of RISS to c p
Speaker 1: I And what impact is that going to have on
Speaker 1: the stock market if we do see an even deeper
Speaker 1: reversion in the yield curve. Yes, I think it's it's
Speaker 1: still it's still a valuation challenge, you know. I think
Speaker 1: you have a market where the earnings yield for the
Speaker 1: smp is is around US six percent UH and the
Speaker 1: yield on investment grade corporate bonds is around six percent.
Speaker 1: You know, in that environment, equities are not obviously a
Speaker 1: cheap asset, even though they have de rated and cheapened
Speaker 1: a lot a year to date. And so, you know,
Speaker 1: I think the higher that the front end rate goes,
Speaker 1: that obviously puts upward pressure on longer end yields. At
Speaker 1: a time when when my colleague Michael Wilson in the
Speaker 1: U S and my colleague Graham Sector in Europe are
Speaker 1: our equity strategist at Morgan Stanley still think earnings estimates
Speaker 1: come down so I think this is an environment where
Speaker 1: the equities valuations have improved, But actually it's often in
Speaker 1: the fixed income markets, the investment grade credit markets where
Speaker 1: we think that valuation is currently better. Just thirty seconds
Speaker 1: left here, Andrew. But other certain sectors of the market
Speaker 1: that are looking oversold to you, well, I think at
Speaker 1: the moment the challenges the defensives are you know, usually
Speaker 1: work in this environment, but they're well owned. So healthcare
Speaker 1: is the sector that we like, although it's performed well
Speaker 1: in Europe. We think energy looks attractive. And we also
Speaker 1: think banks while perform cyclicals in Europe going into this
Speaker 1: earning season, and we'll see how banks in the US do.
Speaker 1: And um, just a couple hours here. As a bank
Speaker 1: earning season gets underweight, we gotta leave it there for now. Andrew,
Speaker 1: thanks so much for the time. Andrew Sheets, chief cross
Speaker 1: assets strategist at Morgan Stanley with us this morning. Karen Nathan,
Speaker 1: thank you. It is five fifty three on Wall Straight.
Speaker 1: Now to a legal story where watching this morning, Judge
Speaker 1: James Hoe, a conservative judge on the Fifth Circuit Court
Speaker 1: of Appeals, is boycotting a Yale law students, saying he
Speaker 1: will no longer hire law clerks from Yale because of
Speaker 1: what he called the school's cancel culture. The Trump appointee
Speaker 1: cited instances where students pro chesti conservative speakers on campus.
Speaker 1: Judge Elizabeth Branch of the Eleventh Circuit Court of Appeals
Speaker 1: and other Trump appointee so she will join the boycott,
Speaker 1: although other judges have criticized the policy. For more. Bloomberg
Speaker 1: student Grosso speaks to judiciary expert Professor Carl Tobias of
Speaker 1: the University of Richmond Law School, Can you explain the
Speaker 1: reasons why Judge Hoe is essentially blacklisting Yale students? Well,
Speaker 1: he says himself that he's concerned about the lack of
Speaker 1: civility I think at Yale, especially where they are outside
Speaker 1: speakers who come who might be pretty conservative politically. In
Speaker 1: some incidents have happened at Yale that troubled him, and
Speaker 1: so he has said he will not consider Yale students
Speaker 1: going forward, which is unfortunately regrettable, as his colleague Jerry
Speaker 1: Smith said, who is equally conservative, but says he enjoys
Speaker 1: hiring the Yale clerks and the recent ones have been excellent.
Speaker 1: Do most conservative judges and conservative Supreme Court justices, higher
Speaker 1: clerks who are conservatives, yes to some extent, but not exclusively,
Speaker 1: and judges whom everyone respects, like Justice Scalia, often wanted
Speaker 1: to have what one clerk called counter clerks who took
Speaker 1: very different views. Professor Steinfeld, I think at Michigan was
Speaker 1: saying he was such a clerk for Justice Scalia, and
Speaker 1: they hardly ever agreed on anything politically. But he enjoyed
Speaker 1: the back and forth, and I think Justice Scalia did too.
Speaker 1: It may be counter productive to not have clerks, as
Speaker 1: many judges like to do, who will take the opposite
Speaker 1: perspective from the judge and sometimes went over the judge
Speaker 1: on the argument to put in perspective. Some of the
Speaker 1: Supreme Courts most conservative conservatives went to Yale. Clarence Thomas,
Speaker 1: Samuel Alito, Brett Kavanaugh, Senator Josh Hall, very conservative JD. Vance,
Speaker 1: even Stewart Rose, the leader of the oath Keepers, went
Speaker 1: to Yale. So there are conservatives coming out of Yale,
Speaker 1: and by doing this, the judges punishing them. Well, I
Speaker 1: think that's true to some expend Judge Smith, his colleague
Speaker 1: on the Fifth Circuits that I'm happy to hire them,
Speaker 1: please send more. And I think a number of judges
Speaker 1: feel very similarly. So it is regrettable and unfortunate for
Speaker 1: the school and Ford students and the judges who may
Speaker 1: not take excellent students because of that. Do you think
Speaker 1: a student would ever turn down Yale Law School if
Speaker 1: they were admitted because certain conservative judges would not take
Speaker 1: them as clerks. I doubt. They probably have many, many opportunities,
Speaker 1: And it's really the judges loss because they received such
Speaker 1: a fine education and they're extremely well qualified, and so
Speaker 1: they often write their own tickets anyway, And as Professor
Speaker 1: Carl Tobias of the University of Richmond Law School speaking
Speaker 1: with the Bloomberg's Doing Grosso, catch more of that interview,
Speaker 1: plus analysis of the latest legal news by subscribing to
Speaker 1: the Bloomberg Law Podcast. Are downloading the show at Bloomberg
Speaker 1: dot com slash podcast. Attorneys can find exceptional legal research
Speaker 1: and business development tools at Bloomberg Law dot com and
Speaker 1: on the Bloomberg terminal at b law Go. Futures this
Speaker 1: morning are moving lower. SMP futures down about nine points down,
Speaker 1: futures down thirty, nowsday futures down forty h the decks
Speaker 1: in Germany's up seven tenths of upper sent pen Your
Speaker 1: treasury up nine thirty seconds here three point nine zero percent,
Speaker 1: and they yield on the two year four point four
Speaker 1: two percent, And Nimex screwede oil is down seven tenths
Speaker 1: of a percent, and top stories straight ahead. This is
Speaker 1: Bloomberg