WEBVTT - Bloomberg Daybreak: October 7, 2022 - Hour 1 (Radio) 0:00:01.800 --> 0:00:05.119 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.160 --> 0:00:08.680 day Break for Friday, October seven two. Coming up this hour, 0:00:09.039 --> 0:00:12.039 we await US jobs data as stocks try to avoid 0:00:12.039 --> 0:00:15.320 a three day slide. FED officials overwhelmingly pushed back against 0:00:15.360 --> 0:00:18.160 the idea of cutting rates next year. The trial between 0:00:18.200 --> 0:00:20.720 Elon Musk and Twitter gets delayed and helps the deal 0:00:20.760 --> 0:00:23.720 will close. An oil poise for a big weekly rally 0:00:23.800 --> 0:00:26.799 after Opex announced cutting. Judges ruling is a blow to 0:00:26.840 --> 0:00:30.040 New York State's new gun law. Plus an n y 0:00:30.160 --> 0:00:33.720 p D cruiser crashes onto a sidewalk injuring ten people 0:00:33.760 --> 0:00:36.320 by Michael barn More ahead, I'm down Station where the 0:00:36.320 --> 0:00:39.040 Colts beat the Broncos it over time. The medicine Padres 0:00:39.080 --> 0:00:42.080 begin their wild Card playoff series tonight at City Field. 0:00:44.479 --> 0:00:47.320 That's all s trendy head on Bloomberg day Break on 0:00:47.440 --> 0:00:51.560 Bloomberg eleven three on New York, Bloomberg nine one, Washington 0:00:51.680 --> 0:00:55.800 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.800 --> 0:00:59.680 San Francisco, Sirius x M one nineteen and around the 0:00:59.680 --> 0:01:03.040 world on Bloomberg Radio dot Com and via the Bloombird 0:01:03.040 --> 0:01:09.640 Business app Good morning. I'm Nathan Hagar and I'm Karen 0:01:09.720 --> 0:01:13.720 Moscow and US Dock Index futures are lower this morning. 0:01:13.800 --> 0:01:15.440 We're coming up to five oh one on Wall Street, 0:01:15.480 --> 0:01:17.440 and we checked the markets every fifteen minutes throughout the 0:01:17.480 --> 0:01:20.240 trading day. On bloomberg S and P futures are down 0:01:20.240 --> 0:01:23.720 about six points. Own futures are little change. Nowsday future 0:01:23.800 --> 0:01:25.920 is down forty four. In the ten year treasury down 0:01:25.959 --> 0:01:28.440 to thirty seconds. He had three point eight three for 0:01:28.640 --> 0:01:31.360 sent Nathan Karen. Let's begin this morning with talk from 0:01:31.360 --> 0:01:33.920 the FED. Central bankers are coming out in full force 0:01:34.000 --> 0:01:36.959 to talk down expectations of a turn to more devilish policy. 0:01:37.120 --> 0:01:40.560 We heard hawkish comments from no less than five officials yesterday, 0:01:40.680 --> 0:01:44.280 including Minneapolis Fed President Neil cash Carry. Until I see 0:01:44.319 --> 0:01:48.280 some evidence that underlying inflation has solidly peaked and there's 0:01:48.280 --> 0:01:51.360 hopefully headed back down, I'm not ready to declare pause. 0:01:51.520 --> 0:01:54.840 Minneapolis Fed President Neil cash Cary said he expects losses 0:01:54.880 --> 0:01:58.000 and failures around the global economy as we transition to 0:01:58.040 --> 0:02:01.840 a higher interest rate environment. Likewise, Fed Governor Christopher Waller 0:02:01.880 --> 0:02:04.240 says he sees no signs of a FED pivot either. 0:02:04.280 --> 0:02:08.280 This or next year. I anticipate additional rate hikes into 0:02:08.320 --> 0:02:11.400 early next year, and I'll be watching the data carefully 0:02:11.440 --> 0:02:14.760 to decide the appropriate pace of tightening as we continue 0:02:14.800 --> 0:02:18.000 to move into more and more restrictive territory. FED Governor 0:02:18.080 --> 0:02:20.800 Christopher Waller emphasized the need to fight inflation, and we 0:02:20.880 --> 0:02:24.120 heard similar remarks yesterday from Cleveland FED Chief Or at Amester, 0:02:24.280 --> 0:02:28.000 FED Governor Lisa Cook, and Chicago's Charles Evans. Well, let's 0:02:28.000 --> 0:02:30.079 take a look at the markets now, nathan Us dot 0:02:30.120 --> 0:02:33.399 Indix futures are mostly lower in that hawk ish FED 0:02:33.440 --> 0:02:36.399 talk in some weak earning sham chipmakers are hitting sentiment. 0:02:36.520 --> 0:02:40.799 Jessica Biemers, portfolio manager with Easterly Investment Partners. I think 0:02:40.880 --> 0:02:44.320 we all have to understand that, um, we're only going 0:02:44.400 --> 0:02:48.040 to get early hints of the FED full impact. A 0:02:48.040 --> 0:02:50.600 lot of the efforts that they put out there obviously 0:02:50.760 --> 0:02:53.119 huge increatures in the interest rate, but that takes time 0:02:53.160 --> 0:02:55.720 to work its way through the economy and certainly on 0:02:55.760 --> 0:02:58.280 the jobs numbers that we're going to see. Jessica b 0:02:58.720 --> 0:03:02.160 with Easterly Investment Partner says FED policy could start hitting 0:03:02.200 --> 0:03:04.840 earnings in the coming months. That job's report is the 0:03:04.919 --> 0:03:07.120 key event on the agenda today, Karen, we get the 0:03:07.120 --> 0:03:10.600 employment figures for September at eight thirty am Wall Street Time. 0:03:10.720 --> 0:03:14.120 Here with a preview is Bloomberg Economics correspondent Michael McKee. 0:03:14.280 --> 0:03:16.600 Employment is one of the Fed's two mandates, and this 0:03:16.720 --> 0:03:18.839 job's report will be one of the key numbers as 0:03:18.880 --> 0:03:22.040 policymakers decide on a rate hike next month. What they'd 0:03:22.040 --> 0:03:24.000 like to see is job growth in the neighborhood of 0:03:24.000 --> 0:03:27.520 the Bloomberg Consensus, which would suggest the economy is slowing 0:03:27.800 --> 0:03:31.960 but not crashing. Unemployment is also key. No change is expected, 0:03:32.000 --> 0:03:34.720 but historically a jump in the jobless is a sign 0:03:34.720 --> 0:03:38.800 of recession ahead. Stronger job creation or lower unemployment would 0:03:38.840 --> 0:03:41.400 suggest the Fed will push interest rates higher for longer, 0:03:41.600 --> 0:03:45.360 disappointing investors. A consensus like report would turn attention to 0:03:45.440 --> 0:03:48.840 next week's consumer price index, a final decision point for 0:03:48.880 --> 0:03:51.880 the Fed. Michael McKey Bloomberg Daybreak, All right, Mike, thank you. 0:03:51.960 --> 0:03:54.040 Sick with us all morning for live coverage of the 0:03:54.080 --> 0:03:57.560 September jobs report, plus a conversation with Marty Walsh. We 0:03:57.560 --> 0:03:59.840 speak with the US Labor Secretary. Coming up in the 0:04:00.040 --> 0:04:03.200 nine am hour on Bloomberg Radio and Television. We'll turning 0:04:03.200 --> 0:04:05.400 to oil now, Nathan. We're seeing crewde head for its 0:04:05.440 --> 0:04:08.800 biggest weekly game since March. After sliding on concerns over 0:04:08.800 --> 0:04:12.360 a global slowdown, oil has rallied since Opek announced plans 0:04:12.400 --> 0:04:15.600 for a large production cut and checking prices now nine 0:04:15.760 --> 0:04:17.800 x screwed oil is up half per cent, is at 0:04:17.800 --> 0:04:20.360 eighty eight dollars ninety three cents. Of Barrel brand is 0:04:20.440 --> 0:04:23.320 up about the same at ninety four dollars nine cents. Now, 0:04:23.400 --> 0:04:26.000 let's get the latest on Elon Musk and Twitter, Karen, 0:04:26.040 --> 0:04:28.520 there is uncertainty creeping into Musk's plans to buy the 0:04:28.560 --> 0:04:32.159 company afterward his offers contingent on thirteen billion dollars in 0:04:32.240 --> 0:04:35.640 debt financing, Bloomberg said. Ludlow has more. The concern is 0:04:35.680 --> 0:04:38.080 that Musque has this twelve point five billion dollars of 0:04:38.320 --> 0:04:41.200 debt split between a six point five billions dollar alone, 0:04:41.240 --> 0:04:43.719 three billion of un secured, three billion of secured bonds. 0:04:43.760 --> 0:04:46.960 There's also revolving credit line in their times have changed 0:04:47.000 --> 0:04:49.560 since that deal in that package was agreed in April, 0:04:49.960 --> 0:04:52.160 and so I guess the concern in the background is 0:04:52.200 --> 0:04:55.360 the viability of that debt. Bloomberg's Had Ludlow reports to 0:04:55.480 --> 0:04:58.240 judges halting the court case to allow the deal to close. 0:04:58.320 --> 0:05:01.240 He says that the transaction isn't done by five pm October, 0:05:02.200 --> 0:05:04.960 new trial dates will be set for November. Shares of 0:05:05.040 --> 0:05:07.760 Twitter rose in late trading yesterday. Right now they are 0:05:07.880 --> 0:05:11.279 little changed. I'll see hum incorporate news, Nathan. We're seeing 0:05:11.320 --> 0:05:14.800 possible signs of a bigger downturn intech. Shipmakers are warning 0:05:14.800 --> 0:05:18.279 of slowing demand. Samsung and a MD reported earnings within 0:05:18.320 --> 0:05:21.839 hours of each other that widely missed estimates. The numbers 0:05:21.920 --> 0:05:25.280 come after Micron Technology slash spending and output in hopes 0:05:25.320 --> 0:05:30.200 of stabilizing plunging prices, and Amazon's abandoning its home delivery robot. 0:05:30.240 --> 0:05:33.320 It just the latest cut to the company's experimental projects. 0:05:33.320 --> 0:05:36.160 Bloomberg's Charlie Pellett has more on that story. It is 0:05:36.200 --> 0:05:38.919 the latest sign that the e commerce giant is starting 0:05:38.920 --> 0:05:43.720 to wind down experimental projects amidst slowing sales growth. According 0:05:43.760 --> 0:05:47.520 to a source, work on Scout, an autonomous machine launched 0:05:47.520 --> 0:05:50.839 about three years ago, has already been halted. An Amazon 0:05:51.000 --> 0:05:54.640 spokesperson said the Scout team was being disbanded and would 0:05:54.680 --> 0:05:58.120 be offered new jobs in the organization. A source says 0:05:58.160 --> 0:06:01.479 about four hundred people were working on the project globally 0:06:02.000 --> 0:06:05.440 in New York, Charlie Pelt Bloomberg Daybreak, All right, Charlie, 0:06:05.440 --> 0:06:08.320 thank you, let's talk politics now. In the conflict in Ukraine, 0:06:08.360 --> 0:06:11.000 President Biden weighing in on the war at a fundraiser 0:06:11.040 --> 0:06:14.279 in New York, expressing concern of our Vladimir Putin's threats 0:06:14.320 --> 0:06:17.479 to use nuclear weapons. Biden called the threats real and 0:06:17.520 --> 0:06:19.600 says the US is trying to find an off ramp 0:06:19.600 --> 0:06:22.719 for Putin. Biden warrant it if Putin deployed nuclear weapons, 0:06:22.760 --> 0:06:25.120 it could lead to armageddon. At the same time, caring 0:06:25.160 --> 0:06:27.839 the president's making announcements back here at home, he announced 0:06:27.839 --> 0:06:31.320 the pardon for any American convicted of simple marijuana possession 0:06:31.360 --> 0:06:33.919 under the law. Too many lives have been upended because 0:06:33.920 --> 0:06:36.800 of our failed approach to marijuana. It's time that we 0:06:36.920 --> 0:06:40.320 right these wrongs. President Biden's all surging governors to issue 0:06:40.360 --> 0:06:44.400 similar partis for state offenses involving marijuana. And we are 0:06:44.480 --> 0:06:48.680 just getting word that a lesbia Latsky of Belarus, known 0:06:48.720 --> 0:06:51.599 for his work in civil rights, is the winner of 0:06:51.640 --> 0:06:54.599 the Nobel Peace Prize again at just crossing the Bloomberg 0:06:55.000 --> 0:06:58.320 SMP futures are now little change, so are Dow futures, 0:06:58.320 --> 0:07:01.000 while Nousdack futures are moving low. Were this morning down 0:07:01.000 --> 0:07:04.839 about thirty three points. Ten year treasury down to thirty seconds. 0:07:04.880 --> 0:07:07.640 You had three point eight three percent and a yield 0:07:07.640 --> 0:07:10.160 on the two year four point to five percent, and 0:07:10.280 --> 0:07:13.040 I make screwed oil again up about half percent. Traight 0:07:13.080 --> 0:07:16.240 ahead your latest local headlines plus a check of sports. 0:07:16.720 --> 0:07:24.480 And this is Bloomberg the deparent. It's five oh seven 0:07:24.480 --> 0:07:27.200 on Wall Street where at sixty one degrees in Central Park, 0:07:27.440 --> 0:07:30.480 starting out with delays on path of signal issues between 0:07:30.560 --> 0:07:33.520 Journal Square through thirty third Street. Details coming up in traffic. 0:07:33.720 --> 0:07:35.640 First Michael Barr with what else is going on in 0:07:35.640 --> 0:07:38.320 New York and around the world. Good morning, Michael, Good morning, Nathan. 0:07:38.400 --> 0:07:41.240 Authorities in New York City say ten people were injured, 0:07:41.280 --> 0:07:44.640 including two young children and win a police cruiser collided 0:07:44.680 --> 0:07:48.040 with another vehicle and crashed onto a sidewalk. It happened 0:07:48.120 --> 0:07:51.640 yesterday afternoon in the Bronx at Westchester and the Whole Avenues. 0:07:52.120 --> 0:07:55.960 NYPD Chief of Patrol Jeffrey Madrey said The patrol car 0:07:56.120 --> 0:07:58.600 was responding to a call and trying to get around 0:07:58.640 --> 0:08:01.240 a vehicle at an inter side should when the crash happened. 0:08:01.600 --> 0:08:03.880 The officers crossed over the double yellow line to go 0:08:04.000 --> 0:08:08.480 around the vehicle, but the vehicle made a left hand term, 0:08:08.520 --> 0:08:13.400 at which point the department vehicle and a civilian vehicle 0:08:14.040 --> 0:08:18.040 they clicked each other. Police say there are no major injuries. 0:08:18.400 --> 0:08:21.320 Officials in New York are looking at their next options 0:08:21.360 --> 0:08:23.920 after a federal judge struck down the state's new law 0:08:24.280 --> 0:08:27.760 banning guns in certain public areas. The law was created 0:08:27.760 --> 0:08:31.000 in response to a Supreme Court ruling striking down another 0:08:31.080 --> 0:08:34.200 New York law that restricted who could own a gun. Now, 0:08:34.240 --> 0:08:37.360 officials are concerned about guns being carried into crowded areas 0:08:37.440 --> 0:08:40.520 like Times Square. The judge issued a three days stay 0:08:40.559 --> 0:08:43.400 on his own order, allowing the state to appeal it 0:08:43.440 --> 0:08:46.960 in Governor HOCl vows to do just that. An extremist 0:08:47.040 --> 0:08:49.920 group leader is now the first plead guilty to seditious 0:08:49.960 --> 0:08:53.400 conspiracy in the January six attack. The senior member of 0:08:53.400 --> 0:08:56.240 the Proud Boys admitted to planning of island assault on 0:08:56.280 --> 0:09:00.800 the Capitol days before the January six insurrection. Jeremy Bertino 0:09:00.880 --> 0:09:04.960 has agreed to cooperate with federal investigators. Gruesome crime on 0:09:05.040 --> 0:09:08.600 the Las Vegas Strip, where police say eight people were stabbed. 0:09:08.640 --> 0:09:11.800 At least two of the victims died. Las Vegas Metropolitan 0:09:11.840 --> 0:09:15.160 and Police Deputy Chief James la Rochelle said the string 0:09:15.200 --> 0:09:19.439 of attacks began with an apparently unprovoked attack. That stabbing 0:09:19.520 --> 0:09:23.960 occurs quickly and in A suspect subsequently goes a self 0:09:24.000 --> 0:09:27.800 bound on the sidewalk area and status additional victims UH. 0:09:27.920 --> 0:09:31.520 Five victims there and um uh and there was an 0:09:31.520 --> 0:09:35.120 additional victim on the south side of Sands. Also, Deputy 0:09:35.200 --> 0:09:39.000 Chief Labrochelle says a suspect is in custody. Grieving relatives 0:09:39.040 --> 0:09:41.600 are placing flowers at a day care center in rural 0:09:41.840 --> 0:09:46.080 northeastern Thailand. A day earlier, a fired police officer killed 0:09:46.080 --> 0:09:50.000 thirty six people, including children. Several media outlets are reporting 0:09:50.000 --> 0:09:52.800 the FBI has gathered what it believes is enough evidence 0:09:53.000 --> 0:09:56.640 to support charging President Biden's son Hunter with crimes related 0:09:56.679 --> 0:09:59.319 to his taxes and a gun purchase. Global Need was 0:09:59.320 --> 0:10:01.960 twenty four hours a day on a rand on Bloomberg Quicktake, 0:10:02.160 --> 0:10:04.520 powered by more than the seven hundred journalists and analyst 0:10:04.559 --> 0:10:07.480 world than a hundred twenty countries. Michael bar this is Bloomberg, Nathin. 0:10:07.520 --> 0:10:14.120 Thank you, Michael. Almost five ten on Wall Street time 0:10:14.120 --> 0:10:16.960 for the Bloomberg Sports Updated. Morney Johns, Good morning, Nathan. 0:10:17.000 --> 0:10:18.880 It's the game the Mets did not want to play. 0:10:18.920 --> 0:10:20.680 Did I think they were gonna have to play for 0:10:20.720 --> 0:10:23.000 most of the season, but they finished tied for first 0:10:23.000 --> 0:10:25.720 with Atlanta, who won the season series ten to nine. 0:10:25.840 --> 0:10:28.360 That's the Braves sitting home today and the Mets getting 0:10:28.360 --> 0:10:29.880 ready to play Game one of the best of three 0:10:29.880 --> 0:10:32.520 wild Card series at Citi Field with San Diego and 0:10:32.600 --> 0:10:34.680 Max sers Or will be on the mound for the Mets. 0:10:34.840 --> 0:10:36.679 You're just anxious to get out there. You're anxious to 0:10:36.679 --> 0:10:39.400 go out there and compete. Uh, you know everything's online, 0:10:39.400 --> 0:10:42.120 win or go home. Um, you know that's the i 0:10:42.200 --> 0:10:43.719 C you have to have. You have to win. I mean, 0:10:43.840 --> 0:10:45.840 you get in the postseason and every day feels like 0:10:45.840 --> 0:10:48.760 a must win that you know, must win the game. Um, 0:10:48.880 --> 0:10:51.600 whether it's an elimination game or not. He always show 0:10:51.679 --> 0:10:53.440 up the part like we got to win today. Hugh 0:10:53.559 --> 0:10:55.959 Darvish starts to the Padres, who won the season series 0:10:55.960 --> 0:10:58.079 with the Mets spoor to two. The game tonight comes 0:10:58.120 --> 0:11:00.880 after three day games starting with Sam the Bay at Cleveland. 0:11:00.920 --> 0:11:04.240 Whether that series then faces the Yankees, the Phillies playing St. 0:11:04.320 --> 0:11:07.000 Louis c Attle. Seattle is in Toronto, NFL, and Denver 0:11:07.120 --> 0:11:10.560 went to overtime. There were twelve Mounts, ten sacks, four 0:11:10.600 --> 0:11:14.199 interceptions and no touchdowns. Indianapolis came four field goals. The 0:11:14.280 --> 0:11:17.040 Broncos had three Indie one twelve to nine to get 0:11:17.080 --> 0:11:18.679 at second one of the year. Denver drops to two 0:11:18.720 --> 0:11:21.600 and three. Russell Wilson has struggled as his new team 0:11:21.800 --> 0:11:24.679 landed Collins back with his old time team. Three time 0:11:24.720 --> 0:11:26.920 Pro Bowl safety while with the Giants, he then signed 0:11:26.920 --> 0:11:29.920 as a free agent with Washington. He was unsigned and 0:11:29.960 --> 0:11:32.400 though Collins won't play Sunday, he did fly with his 0:11:32.400 --> 0:11:34.960 new teammates to London for Sunday's game of Green Bay. 0:11:35.320 --> 0:11:38.040 So in preseason last night, the Islanders beat the Devil's 0:11:38.080 --> 0:11:42.280 five to two. NHL season begins next Tuesday, and at Barkley's, 0:11:42.320 --> 0:11:44.640 the Net's blown out by the Heat Miami one by 0:11:44.679 --> 0:11:48.079 twenty nine. Johns Dashward bloom Brook Sports Nick thank you, 0:11:48.160 --> 0:11:51.040 John right now SMP futures are down one point down. 0:11:51.120 --> 0:11:54.600 Futures are higher by thirty four points. Dan Stack futures 0:11:54.640 --> 0:11:57.199 on the decline, down twenty nine points, about a quarter 0:11:57.240 --> 0:12:00.640 of one percent. Ahead of September jobs will preview the 0:12:00.640 --> 0:12:08.000 payroll data with Jennifer Lee of bemo Next Bloomberg eleven 0:12:08.040 --> 0:12:10.720 three oh weather sunshine pleasant today with behind your seventy 0:12:10.720 --> 0:12:13.400 five degrees. It's gonna be cooler this weekend though. Tomorrow's 0:12:13.480 --> 0:12:17.120 high near sixty, low sixties and sunny for Sunday currently 0:12:17.160 --> 0:12:24.360 sixty one in Central Park Markets. Headlines and breaking news 0:12:24.440 --> 0:12:27.040 twenty four hours a day at Bloomberg dot Com, The 0:12:27.120 --> 0:12:30.520 Bloomberg Business at and at Bloomberg Quick Take, This is 0:12:30.559 --> 0:12:39.640 a Bloomberg business clash and I'm Karen Moscow. US dot 0:12:39.720 --> 0:12:42.520 Index futures are little change this morning ahead of the 0:12:42.600 --> 0:12:45.160 latest paved hours report, and investors will be looking for 0:12:45.280 --> 0:12:48.800 clues on the path of monetary policy. European stocks also 0:12:48.840 --> 0:12:51.400 a little change this morning, well now a little change 0:12:51.400 --> 0:12:53.559 to higher and we checked the markets every fifteen minutes 0:12:53.559 --> 0:12:57.240 throughout the trading day on Bloomberg s andp futures little 0:12:57.320 --> 0:13:00.000 change down. Futures of forty two and NAS day future 0:13:00.160 --> 0:13:02.959 is down twenty four the decks in Germany's up a 0:13:03.000 --> 0:13:06.040 tenth of a percent. Ten year treasury down to thirty seconds. 0:13:06.040 --> 0:13:08.199 He'll three point three percent. They yield on the two 0:13:08.280 --> 0:13:11.360 year four point to five percent. Ni Max Screwed oil 0:13:11.480 --> 0:13:13.520 is up six ten percent or fifty one cents at 0:13:13.559 --> 0:13:16.400 eighty eight dollars ninety nine cents a barrel. Comics schooled 0:13:16.400 --> 0:13:18.320 the tenth of a percent of a dollar eighty at 0:13:18.360 --> 0:13:22.320 seventeen twenty two sixty announce the euro point nine eight 0:13:22.400 --> 0:13:24.959 o two against the dollar British found one point one 0:13:24.960 --> 0:13:27.160 two oh six and a yen one forty four point 0:13:27.160 --> 0:13:29.720 eight seven. And look at a bitcoin this morning, down 0:13:29.720 --> 0:13:32.720 about two tens of a percent at twenty thousand dollars. 0:13:32.920 --> 0:13:34.960 The sepembent jobs reported by the Way how at eight 0:13:34.960 --> 0:13:37.440 thirty Wall Street Time, and that's a bloomberg business flash. 0:13:37.480 --> 0:13:39.920 Now here's Michael Barr with more unless going on around 0:13:39.920 --> 0:13:42.800 the world. Munchael, Good morning, Good morning, Karen. President Joe 0:13:42.800 --> 0:13:45.520 Biden said the US is trying to find an off 0:13:45.679 --> 0:13:49.720 ramp for Russian President Vladimir Putin vorious. His threats to 0:13:49.800 --> 0:13:52.840 use tactical nuclear weapons are real and could lead to 0:13:53.160 --> 0:13:56.760 Armageddoniden made his comments at a fundraiser in New York City. 0:13:57.160 --> 0:14:00.240 This year's Nobel Peace Prize has been awarded to Al 0:14:00.400 --> 0:14:05.319 Belarus Rites activists ales B. A. Leotsky, the Russian group Memorial, 0:14:05.400 --> 0:14:09.200 and the Ukrainian Organization Center for Civil Liberties. In baseball, 0:14:09.200 --> 0:14:12.320 the Matt Santa Padre started their wild Card playoff series 0:14:12.360 --> 0:14:15.720 tonight Thursday Night Football. The Colts be the Broncos twelve 0:14:15.840 --> 0:14:20.080 nine in a game where no touchdowns were scored. Global 0:14:20.120 --> 0:14:22.640 News twenty four hours a day on air and on 0:14:22.720 --> 0:14:26.920 Bloomberg Quicktake, powered by more than hundred journalists and analysts 0:14:26.960 --> 0:14:30.360 more than a hundred twenty countries. Michael bar this is Bloomberg, Nathan. 0:14:30.400 --> 0:14:32.680 Thank you, Michael. It's five nineteen on Wall Street Live 0:14:32.720 --> 0:14:36.520 from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak, 0:14:36.600 --> 0:14:38.800 and we are indeed counting down to the release of 0:14:38.840 --> 0:14:41.920 the September payrolls report at eight thirty am Wall Street time. 0:14:41.960 --> 0:14:44.480 Ahead of that, it's time to talk with Jennifer Lee, 0:14:44.680 --> 0:14:47.720 senior economist at BEMO Capital. Market's always great to speak 0:14:47.760 --> 0:14:51.080 with you on a job's day, Jennifer. We have seen 0:14:51.200 --> 0:14:54.000 signs of cooling in this jobs market. Do you think 0:14:54.000 --> 0:14:57.120 they're gonna pan out when we get the actual data 0:14:57.520 --> 0:15:00.560 later on this morning? Good morning, And I'm going to 0:15:00.600 --> 0:15:02.800 say yes, I believe they will. Man. Of course we 0:15:02.920 --> 0:15:06.280 said that last month and we had that big figure again. 0:15:06.360 --> 0:15:09.600 But no, I think, well, we're roughly in line with expectations, 0:15:09.960 --> 0:15:14.320 looking for about a two increase UH for September. Job 0:15:14.440 --> 0:15:16.960 was right to stay steady, is shut around three point seven, 0:15:17.960 --> 0:15:20.360 and earnings to continue to take a little bit higher, 0:15:20.440 --> 0:15:23.240 which I think is probably the key number, um, just 0:15:23.320 --> 0:15:26.760 because you would probably determine and you know how much stronger, 0:15:26.760 --> 0:15:31.360 how much you know how much incomes workers are still getting, 0:15:31.400 --> 0:15:33.200 and whether this is going to be a soft landing 0:15:33.280 --> 0:15:34.840 or a hard landing, or if there's gonna be any 0:15:34.880 --> 0:15:37.760 landing at all. Is that the key metric that the 0:15:37.800 --> 0:15:41.360 FEDS looking at in terms of getting a handle on inflation. 0:15:42.040 --> 0:15:46.640 What's behind that wage number? Call for you? So, I 0:15:46.640 --> 0:15:50.480 mean again, just remains a very very tight labor market, 0:15:50.480 --> 0:15:53.160 no matter what UM. It used to be tighter, but 0:15:53.320 --> 0:15:57.080 still tight. And the tighter it is, the more employers 0:15:57.080 --> 0:15:58.960 are gonna be half we're going to be forced to 0:15:59.440 --> 0:16:01.320 pay out more are in wages and then that's going 0:16:01.360 --> 0:16:03.800 to feel some inflation area theaters. So I think the 0:16:04.640 --> 0:16:06.920 fetters gonna be looking at the entire report, but I 0:16:06.960 --> 0:16:09.360 think the earnings number will be one of the ones 0:16:09.400 --> 0:16:12.080 that they're play going to be zooming on a students 0:16:12.160 --> 0:16:14.760 numbers are out. In terms of sectors, where are you 0:16:14.920 --> 0:16:19.320 looking at the biggest signs of wage pressure in the 0:16:19.400 --> 0:16:23.240 labor market, I'm going to see transportation um construction as well, 0:16:23.280 --> 0:16:26.760 because those that's two areas that continues to continue to 0:16:27.040 --> 0:16:31.960 have a very hard time finding skilled labor, qualified labor um. 0:16:32.040 --> 0:16:34.600 You know, we've we've we've already been seeing come back 0:16:34.640 --> 0:16:39.800 in in leisure and hospitality and in retail. But I 0:16:39.800 --> 0:16:44.200 think transportation constructions are again to sectors that continue to 0:16:44.200 --> 0:16:47.680 struggle to find workers, and because of that there are 0:16:47.680 --> 0:16:49.880 going to be forced to pay out more in terms 0:16:49.920 --> 0:16:52.840 of wages and for benefits to attract workers. Okay, so 0:16:52.920 --> 0:16:56.040 transportations of one side, but we have seen a number 0:16:56.040 --> 0:16:59.960 of reports from individual companies that they're beginning to think 0:17:00.000 --> 0:17:02.840 think about layoffs again. Is that something that could pervade 0:17:02.840 --> 0:17:07.639 into the broader report that we see later this morning. Um, possibly, 0:17:07.680 --> 0:17:09.520 but I still think it might be a bit too early. 0:17:09.560 --> 0:17:11.359 I mean, we we've already been seeing the headlines and 0:17:11.400 --> 0:17:14.120 it was interesting actually that you know, the Challenger grant 0:17:14.200 --> 0:17:16.879 Christmas layoffs ers don't get usually get too much airplay, 0:17:16.920 --> 0:17:19.120 but they got a little bit more yesterday, just given 0:17:19.200 --> 0:17:22.000 that there was a big over sixty sixty seven percent 0:17:22.200 --> 0:17:26.120 jump yevery year and announced layoffs, but also the hiring 0:17:26.400 --> 0:17:30.000 intentions robles also still people are still hiring, computers are 0:17:30.000 --> 0:17:32.560 still hiring, for sure, but it's definitely at a floor 0:17:32.600 --> 0:17:34.600 paste in what we've seen in the past. Where do 0:17:34.640 --> 0:17:37.840 you see labor force participation at this point given the 0:17:37.920 --> 0:17:41.200 dynamics that you're talking about in the labor market, there 0:17:41.200 --> 0:17:43.880 has been there was a nice pick up last month, 0:17:43.920 --> 0:17:46.439 and I think we should probably continue to see the 0:17:46.440 --> 0:17:49.359 part rate tick hire. You know, when with prices on 0:17:49.400 --> 0:17:51.879 the rise and station still you know, at at multi 0:17:51.920 --> 0:17:54.240 decade highs, you know, people are gonna be coming off 0:17:54.240 --> 0:17:56.520 of the sidelines, you know, and I say this month 0:17:56.520 --> 0:17:58.840 after month, if you're entertaining you know a number of 0:17:58.920 --> 0:18:01.200 job offerings, you know, to take one now because it's 0:18:01.240 --> 0:18:03.000 not gonna last. So I think it's gonna all of 0:18:03.000 --> 0:18:06.760 this is attracting people to come back onto into the workforce, um, 0:18:06.800 --> 0:18:08.600 and that will help push the part ry a little 0:18:08.600 --> 0:18:11.480 bit higher. Of course, we keep hearing from FED officials 0:18:11.560 --> 0:18:14.520 that rates are going to keep staying higher for longer, 0:18:14.560 --> 0:18:18.480 if not continuing to see outsized interest rate hikes in 0:18:18.520 --> 0:18:20.320 the next couple of meetings. Here, what do you think 0:18:20.359 --> 0:18:23.159 it's going to take in the labor market for the 0:18:23.160 --> 0:18:27.159 FED to consider pulling back a bit on the aggressive 0:18:27.200 --> 0:18:29.600 tightening stance it's taken, well, it's going to be more 0:18:29.640 --> 0:18:32.080 than justice one report. It's going to be several reports. 0:18:32.119 --> 0:18:33.720 It's going to be and it's not just the labor 0:18:33.760 --> 0:18:35.639 market is going to be They're gonna be looking at everything. 0:18:35.680 --> 0:18:39.600 And I think once they see inflation start buckling, um, 0:18:39.640 --> 0:18:41.320 and it's going to take some time before that is, 0:18:41.359 --> 0:18:44.080 before they start to pull back a little bit. I mean, 0:18:44.240 --> 0:18:47.080 and we're we're we continually look for study increases with 0:18:47.160 --> 0:18:49.520 other semi five basis points next one. But I think 0:18:49.760 --> 0:18:51.560 and I don't think this report today is going to 0:18:51.720 --> 0:18:54.680 change that view, but it's going to give a good 0:18:54.720 --> 0:18:57.520 sign of how much further into that they're going to 0:18:57.560 --> 0:19:00.000 continue hiking. I thought it was very interesting yesterday. I mean, 0:19:00.080 --> 0:19:03.560 the messaging from the FEED officials quit consistent. But I 0:19:03.560 --> 0:19:06.040 thought it was very interesting last night when Cleveland Side 0:19:06.040 --> 0:19:08.040 Semester actually came out and said, you know, we are 0:19:08.119 --> 0:19:11.400 not cutting rates next year, which was a pretty strong statement. 0:19:11.600 --> 0:19:14.000 Um um. I don't think anyone's ever has been put 0:19:14.000 --> 0:19:16.560 a timeline on rate cuts just you know, they've been 0:19:16.600 --> 0:19:18.359 saying no, not yet, it's too soon. But the fact 0:19:18.359 --> 0:19:20.400 that she actually said we're not doing it next year 0:19:20.520 --> 0:19:23.400 was I thought quite telling. Yeah, very interesting to see 0:19:23.440 --> 0:19:25.840 someone get on the record to that extent. It will 0:19:25.840 --> 0:19:29.359 be interesting to watch whether other feed officials fall into 0:19:29.400 --> 0:19:31.800 that line or sort of pushed back against it. Thanks 0:19:31.840 --> 0:19:34.000 for this as always, gen great to get your thoughts. 0:19:34.040 --> 0:19:38.159 Jennifer Lee, senior economist at BMO Capital Markets. As we 0:19:38.280 --> 0:19:42.240 await the September payrolls reported eight thirty am Wall Street Time, 0:19:42.560 --> 0:19:45.160 we will be breaking down the numbers for you live 0:19:45.280 --> 0:19:48.560 here on Bloomberg Radio, and we will get reaction from 0:19:48.640 --> 0:19:51.640 Labor Secretary Marty Walls. She joins us in the nine 0:19:51.680 --> 0:19:55.360 am hour across Bloomberg Radio and television. You'll definitely want 0:19:55.359 --> 0:19:58.440 to tune in for that. Ahead of all that, Futures 0:19:58.440 --> 0:20:01.960 are trading mixed at the moment. You're listening to Bloomberg 0:20:02.040 --> 0:20:09.960 Daybreak Bloomberg eleven three oh weather sunny and pleasant today 0:20:09.960 --> 0:20:13.040 with a hind your seventy five degrees cooler tomorrow and 0:20:13.160 --> 0:20:16.160 for the all weekend long hides in the low sixties. 0:20:16.200 --> 0:20:18.560 But it's still gonna be sunny right now. Sixty one 0:20:18.600 --> 0:20:25.600 in Central Park, Broadcasting live from the Bloomberg Interactive Broker 0:20:25.720 --> 0:20:29.120 Studio in New York, Bloomberg E Living FREEO to Washington, 0:20:29.200 --> 0:20:33.080 d C, Bloomberg nine to Boston, Bloomberg one O six 0:20:33.119 --> 0:20:36.320 one to San Francisco, Bloomberg N sixty to the Country, 0:20:36.440 --> 0:20:39.600 Sirius XM Chado one nine and around the globe the 0:20:39.640 --> 0:20:44.680 Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:50.240 --> 0:20:52.399 It's five thirty on Wall Street. Good morning. I'm Nathan 0:20:52.440 --> 0:20:55.480 Hager and I'm Karen Moscow. We're just about four hours 0:20:55.520 --> 0:20:57.600 away from the open of US trading. Let's get you 0:20:57.640 --> 0:20:58.879 up to date on the news you need to know 0:20:58.960 --> 0:21:01.600 at this hour. Beginning a talk from the Fed Central 0:21:01.640 --> 0:21:04.120 bankers are coming out in full force. The talk down 0:21:04.160 --> 0:21:07.720 expectations of a turn to more devilish policy. We heard 0:21:07.760 --> 0:21:11.560 hawkish comments from no less than five officials yesterday, including 0:21:11.560 --> 0:21:15.320 Minneapolis Fed President Neil cash Cary. I fully expect that 0:21:15.359 --> 0:21:18.000