Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: day Break for Tuesday, November one, two. Coming up this hour,
Speaker 1: stock teachers rise as we begin a new trading month.
Speaker 1: Can President Biden deliver on promises to impost higher taxes
Speaker 1: on big oil? Says the bank is not for sale.
Speaker 1: We'll talk with the Swisslanders chairman, and the Fed begins
Speaker 1: its two day policy meeting. A salary transparency law takes
Speaker 1: effect today in New York City. Plus God the Supreme
Speaker 1: Court in affirmative action at universities and colleges. I'm Michael Barr.
Speaker 1: More Ahead, I'm John Stave Showard sports much didn't win
Speaker 1: for the Nets, the Browns upset the Bengals. The World
Speaker 1: Series got reined out. That's all. Trade ahead on Bloomberg
Speaker 1: day Break, on Bloomberg Eliving Free on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty,
Speaker 1: San Francisco, Sirius x AM one nineteen and around the
Speaker 1: world on Bloomberg Radio dot Com and by other Bloomberg
Speaker 1: Business Good Tuesday morning. I'm Any Morris. I'm Nathan Hagar
Speaker 1: futures are moving higher this morning. We're coming up to
Speaker 1: five oh one on Wall Street, and we checked the
Speaker 1: markets every fifteen minutes during the trading day. On Bloomberg,
Speaker 1: SMP futures are up twenty eight points down futures up
Speaker 1: a hundred sixty seven. Nastack futures are higher by a
Speaker 1: hundred two points. Sen Your Treasury is up fifteen thirty seconds.
Speaker 1: The yield three point nine eight percent yield on the
Speaker 1: two year four point for three percent. NIMEX crude is
Speaker 1: up one point three percent this morning at eighty seven
Speaker 1: dollar sixty five cents of barrel Amy Nathan's Dock Center.
Speaker 1: The first day of November moving higher. If history is
Speaker 1: any indication, equities may build on October's gains, which saw
Speaker 1: the SMP five d rise eight percent. Bespoke investment groups
Speaker 1: as the SMP five hundred has registered an average gain
Speaker 1: of eight tenths of a percent in November. Amanda Gotti
Speaker 1: is chief investment officer at p n C Set Management.
Speaker 1: We're still playing a little bit of defense. We're leaning
Speaker 1: US over international, larger over smaller capitalization. We kind of
Speaker 1: neutralize our growth and value bets here um. But with
Speaker 1: valuations following six plus multiple points since the beginning of
Speaker 1: the year, just on the SMP five. You have to
Speaker 1: start getting interested um in opportunities at these levels. The
Speaker 1: n C Asset Managements Amanta Agatti says markets will rally
Speaker 1: if the FED gives a clear message on when rate
Speaker 1: hikes will end. Well. It's been a big trading day
Speaker 1: in Asia, and each Chinese stock surged overnight as speculation
Speaker 1: grows the government there is making preparations to exit stringent
Speaker 1: COVID restrictions. The Hang Sang in Hong Kong rows five
Speaker 1: per cent, while stocks in China gained three point six percent.
Speaker 1: And we continue to see historic profit from oil companies.
Speaker 1: VP this morning reported its second highest quarterly profit on
Speaker 1: record and announced two and a half billion dollars of
Speaker 1: share buybacks. Bloomberg's at Steven Sabzinski says it's a banner
Speaker 1: year for big oil. It's really hard to see anyone
Speaker 1: who is really losing out on this surgeon prices, and
Speaker 1: you've seen it across the board over the last week.
Speaker 1: You've seen you know, Shell total x on h VP
Speaker 1: is is joining this larger group not just in Europe,
Speaker 1: in the United States, but you're also seeing this in
Speaker 1: you know, Saudi Aramco posted their second best quarterly profit ever. Now,
Speaker 1: when it comes to Saudi Aramco, Bloomberg's Steven Stepzinski reports
Speaker 1: the company posted its second highest earnings on record this morning.
Speaker 1: The results from big oil this quarter are do largely
Speaker 1: the surging prices at the pump. Yeah, we've also seen
Speaker 1: record profits from x On Mobile and Chevron. Of course,
Speaker 1: amy they amassed more than thirty billion dollars in combined
Speaker 1: net income last quarter, and that has President Biden calling
Speaker 1: on Congress to impose higher taxes on oil companies. If
Speaker 1: they're not reinvesting in production. They don't, they're gonna pay
Speaker 1: a higher tax on their excess profits and face other restrictions.
Speaker 1: My team will work with Congress to look at these
Speaker 1: up these options that are available to us and others.
Speaker 1: It's time for these comedies to stop for profit cheering
Speaker 1: by President Biden's promised to impose higher taxes will be
Speaker 1: hard to deliver. Democrats have unsuccessfully sought a so called
Speaker 1: windfall profit tax for more than a decade. Such a
Speaker 1: proposal would have a hard time passing the Senate and
Speaker 1: its current makeup. And Nathan Central Banks are also in focus.
Speaker 1: This morning, the Fed begins it's two day policy meeting.
Speaker 1: It is expected to hike rates another seventy basis points.
Speaker 1: At the same time, Australia's Central Bank has raised interest
Speaker 1: rates by a quarter percentage point. It looks like the
Speaker 1: r b A is pivoting away from larger hikes. That's
Speaker 1: according to Bloomberg's that Garfield Reynolds, it's definitely a pivot
Speaker 1: for the r b A. The question is whether other
Speaker 1: central banks are going to be as concerned about the
Speaker 1: growth side of the mandate as the AVA is signaling
Speaker 1: that it is. It's still concerned about inflation. It says
Speaker 1: more hikes are to come, but reading between the lines,
Speaker 1: it's concerned about growth mean that it's not wanting to
Speaker 1: go more than twenty five basis points of time. Bloom
Speaker 1: Chief Rates correspond and Garfield Reynolds says the cash rate
Speaker 1: in Australia now stands at two. That's the highest level
Speaker 1: since In corporate news this morning, Amy we're focused on
Speaker 1: credit suits again. The Swiss Bank is not for sale.
Speaker 1: That's what the firm's chairman Axel Leman is saying, after
Speaker 1: shares have fallen more than fifty percent this year. He
Speaker 1: spoke to us in Hong Kong. We're going to you know,
Speaker 1: to swife again, so we don't have any take over
Speaker 1: the conscience and at that point we truly believe we
Speaker 1: want to stay independent. Credit Swiss chairman Excel Layman made
Speaker 1: the comments in an interview with Bloomberg News. Stay tuned
Speaker 1: for more of that conversation coming up later this hour.
Speaker 1: And back here in the US, the airline and travel
Speaker 1: recovery continues as the busy holiday season approaches. Dert Delta
Speaker 1: air pilots have voted to authorize a strike. Let's get
Speaker 1: the story from Bloomberg's Charlie Pellett. It gives union leaders
Speaker 1: the authority to call for a work stoppage once they
Speaker 1: have gone through steps set by federal labor law. The
Speaker 1: Delta unit of the Airline Pilots Association says about ninety
Speaker 1: nine percent of pilots who voted approved the proposal. The
Speaker 1: participation rate among Delta's roughly fifteen thousand pilots was ninety
Speaker 1: six percent. While aviators must follow steps set by the
Speaker 1: Railway Labor Act and can't randomly walk off the job,
Speaker 1: the strength of the vote represents pilot's view about the
Speaker 1: lack of progress in negotiations in New York. Charlie Palot
Speaker 1: Bloomberg Daybreak, Charlie thanks in another note on the airline industry.
Speaker 1: For the first time since COVID cut air travel, US
Speaker 1: airline passenger traffic has been running above twenty nineteen levels.
Speaker 1: Just over fifteen million people went through t s A
Speaker 1: security portals in the past seven days. That's about thirty
Speaker 1: nine thousand more than and On the political front, the
Speaker 1: midterm elections are set for a week from today, which
Speaker 1: means a policy change from Twitter. The social media company
Speaker 1: has frozen some employee access to internal tools used for
Speaker 1: content moderation and other policy enforcement, curbing the staff's ability
Speaker 1: to clamp down on misinformation ahead of the election. Bloomberg
Speaker 1: News has learned most people who work in Twitter's Trust
Speaker 1: and Safety organization are currently unable to alter or penalize
Speaker 1: most accounts that break rules around misleading information, offensive posts,
Speaker 1: and hate speech futures are higher. This is Bloomberg five
Speaker 1: oh seven on Wall Street. Let's bring in Michael Barr
Speaker 1: with more on what else is going on in New
Speaker 1: York and around the world. Good morning Michael, Good morning Amy.
Speaker 1: A salary transparency law. It takes affect today in New
Speaker 1: York City. It requires most companies in the nation's largest
Speaker 1: job market to include minimum and maximum salary ranges when
Speaker 1: they post job openings. The law supporters say it intends
Speaker 1: to close the pay gap for women and people of color,
Speaker 1: but critics argue it will do just the opposite. The
Speaker 1: Supreme Court kicked off hearing arguments over affirmative action at universities.
Speaker 1: Conservative groups have sued both Harvard University and the University
Speaker 1: of North Caroline up claiming that their admissions processes aren't
Speaker 1: fair to white or Asian applicants. The courts three liberal
Speaker 1: justices cast a doubt on whether race is the sole
Speaker 1: indicator and admissions processes. Attorney Patrick Strawbridge represents students for
Speaker 1: Fair Admissions in the U n C case and says
Speaker 1: that race should only be used in a broader context
Speaker 1: of an application. Racial classifications are wrong. That principle was
Speaker 1: enshrined in our law at great cost Following the Civil War.
Speaker 1: Justice Helena Kagan encountered, the race is part of the culture,
Speaker 1: and the culture is part of the race, isn't it.
Speaker 1: I mean that's slicing the Boloney awfully since. Meanwhile, conservative
Speaker 1: justices have been casting doubt on whether the affirmative action
Speaker 1: programs are needed. A correction officer inside Rikers Island was
Speaker 1: injured after being stabbed over a dozen times. The New
Speaker 1: York City Department of Corrections says it happened yesterday afternoon.
Speaker 1: The officer is said to be in stable condition at
Speaker 1: Elmhurst Hospital. Court documents say the mancus of entering the
Speaker 1: San Francisco home of how speaker Nancy Pelosi wanted to
Speaker 1: break her kneecaps. Speaker was not home. Police say forty
Speaker 1: two year old David pop attacked her husband, Paul Pelosi. Meanwhile,
Speaker 1: Democratic Congresswoman Debbie Dingle of Michigan discussed the attack on
Speaker 1: Paul Pelosi and heightened tensions over political rhetoric and violence.
Speaker 1: She referred to recent Elon Musk tweets on Pelosi. The
Speaker 1: conspiracy theories are also adding to this and putting kerosene
Speaker 1: on and people won't read it. So yeah, you know what,
Speaker 1: I will go after somebody. I thinks a new owner
Speaker 1: of Twitter's got some responsibilities too, and was horrified that
Speaker 1: he would participate in some of this conspiracy theory has
Speaker 1: no to it, no truth to wit. Congresswoman Dingle spoke
Speaker 1: on sound On, which airs at five pm on Bloomberg
Speaker 1: Global News twenty four hours a day on air, and
Speaker 1: on Bloomberg Quittake, powered by more than hundred journalist and
Speaker 1: analyists in more than a hundred twenty countries. On Michael
Speaker 1: bar this is Bloomberg Gaming. All right, thank you, Michael.
Speaker 1: It's fun. Ten on Wall Street. Time now for the
Speaker 1: sports report, brought to you by Try State Audi. Here's
Speaker 1: John stash Our. All right, Amy, the Brooklyn Nets have
Speaker 1: become some of them was soap opera, and very often
Speaker 1: it has to do with Kyrie Irving. Seems as if
Speaker 1: it's always something with Kyrie. The latest was his posting
Speaker 1: on social media of a link to an anti Semitic video.
Speaker 1: It's also the team's early season performance one in five
Speaker 1: record worst defense in the NBA. So how much needed
Speaker 1: win at Barkley's One, sixteen to one on night over Indiana.
Speaker 1: Kyrie scored points, Kevin Durant had thirty six Milwaukee one
Speaker 1: again the Bucks are six and oh. The Monday night
Speaker 1: game an upset win for Cleveland thirty two to thirteen
Speaker 1: over Cincinnati. The Browns led to nothing in the fourth quarter.
Speaker 1: NFL trade deadline four o'clock today, Giants could be looking
Speaker 1: for a wide receiver. Jets white out Elijah Moore has
Speaker 1: asked to be traded. No quarterback change for the Jets
Speaker 1: despite Zack Wilson's three interceptions and the loss of the Patriots.
Speaker 1: The Jet coach Robert Salad, I've got full confidence insa
Speaker 1: we all do. Um um. You know, it's not like
Speaker 1: he hasn't had bad games before and he stepped up
Speaker 1: and has followed over with good days. So you know,
Speaker 1: with the way he preps and the way he practices
Speaker 1: and the questions he asks, we've got faith that will
Speaker 1: continue continue to find ways to get better. From Jets
Speaker 1: to have a tough one Sunday against six and one
Speaker 1: Buffalo College football Auburn fired coach Brian Harrison, so he
Speaker 1: didn't finish the second season of a six year contract
Speaker 1: alone about fifteen million dollars. They're also still playing the
Speaker 1: previous Coach World Series resumed Tonither in Philadelphia after last
Speaker 1: night's rain out. The Phillies have changed their Game three
Speaker 1: starter out is the x met Noah Synder Guard in
Speaker 1: his Rangers swore as the Astros are sticking with Lance
Speaker 1: mccullor's The World Series is tied at one. John stash
Speaker 1: with Bloomberg Sports in all right, Thank you, John. Futures
Speaker 1: are higher, SMP futures up by twenty five points, Staal
Speaker 1: future is a hundred fifty two points higher, and Nasdaq
Speaker 1: features higher by almost nine two points. Much more ahead
Speaker 1: on Bloomberg Day Break. This is Bloomberg. The Bloomberg Sports
Speaker 1: Report was brought to you by Audie. Don't let someone
Speaker 1: else drive off in the Audi model you've always wanted.
Speaker 1: Visit your local try state autie dealer to get behind
Speaker 1: the wheel of yours today, or visit Autie Offers dot
Speaker 1: com for more information, markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business at and at Bloomberg Rictape. He's a Bloomberg Business Flash.
Speaker 1: I'm Nathan Hagar. Stocks and futures are rallying. The dollar
Speaker 1: and treasury yields are falling as investors await the Federal
Speaker 1: Reserves policy meeting. It kicks off today. We checked the
Speaker 1: markets every fifteen minutes during the trading day on Bloomberg,
Speaker 1: SMP futures are up twenty six points down futures up
Speaker 1: a hundred sixty one. Nastact futures are higher by ninety
Speaker 1: six points. The tenure treasury is up sixteen thirty seconds.
Speaker 1: The yield at three point yield on the two year
Speaker 1: four point four three percent. NIMEX screwed is higher by
Speaker 1: eight tenths percent, or seventy two cents at eighty seven dollars.
Speaker 1: Twenty five cents of barrel comic gold is up a
Speaker 1: half percent or eight dollars ten cents at six eighty announced.
Speaker 1: The euro is trading at point nine six against the dollar,
Speaker 1: British pound one point one eight. The yen is at
Speaker 1: one seven point six nine. Ten am Wall Street Time,
Speaker 1: we get jolts job openings in I S M manufacturing data.
Speaker 1: Nearly fifty companies on the S and P five index
Speaker 1: reporternings today. That's a Bloomberg business flatch. Now with more
Speaker 1: on what's going on around the world, here's Michael bar
Speaker 1: Good morning, Michael, Good morning, Nathan. The Supreme Court heard
Speaker 1: arguments in cases challenging the consideration of a student's race
Speaker 1: and college admissions. The cases involving Harvard and the University
Speaker 1: of North Carolina could end affirmative action at public end
Speaker 1: private schools across the country. Airline passenger traffic in the
Speaker 1: US has been running above the comparable levels of twenty nineteen.
Speaker 1: The t s A says it's the first time that's
Speaker 1: happened since COVID nineteen dramatically cut air travel. They'll try
Speaker 1: to make up Game three of the World Series in Philadelphia.
Speaker 1: Last night's Phillies and Astro's game was postponed because of rain.
Speaker 1: In the NBA, the Nets won, the Wizards lost. In
Speaker 1: the NHL, the Capital is lost in a shootout with
Speaker 1: the Hurricanes three to The Browns beat the Ravens thirteen
Speaker 1: and Monday Night Football. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalists and analysts, are more than
Speaker 1: a hundred twenty countries. I'm Michael Barr, and this is
Speaker 1: Bloomberg Gaming. All right, thank you, Michael. It is five
Speaker 1: twenty on Wall Street where live from the Bloomberg Interactive
Speaker 1: Broker Studios. This is Bloomberg Daybreak. Now. For months, the
Speaker 1: White House has been calling on oil companies to invest
Speaker 1: more in oil production. Bloomberg data show the biggest companies
Speaker 1: like Exxon, Shell and Chevron are handing a lot of
Speaker 1: that money over to shareholders and just reinvesting only a
Speaker 1: fraction of their windfall. Now, President Biden has announced as
Speaker 1: planned who raise taxes on oil companies that record those
Speaker 1: windfall profits without reinvesting the money back into production. We're
Speaker 1: joined now by the founder of Pangea Policy, Terry Haines.
Speaker 1: It's gonna help us make sense of it all. Terry,
Speaker 1: thank you for taking the time with us this morning.
Speaker 1: First of all, the presidents also gonna need congressional support
Speaker 1: to do this. Is he going to get it? Good morning, Amy.
Speaker 1: Uh No, he's not. Uh this you know, this strikes
Speaker 1: me politically above all as uh kind of what the
Speaker 1: soccer fans call an own goal. Uh. You know, the
Speaker 1: President's may have been talking about this off and on
Speaker 1: for for a while, but he touts his major legislative
Speaker 1: achievement this year is being the Inflation Reduction Act, Uh,
Speaker 1: something with which you know he wasn't so much involved
Speaker 1: as uh Leader Schumer and Senator Mansion were. And you
Speaker 1: know that was the windfall profits taxes. Not only nowhere
Speaker 1: in that bill, but it was not even discussed at
Speaker 1: that particular time. Uh So what it seems what it
Speaker 1: seems like is a situation where uh, you know, they
Speaker 1: pull out this windfall profits tax narrative whenever they think
Speaker 1: convenient politically, but they're not actually committed to it at all.
Speaker 1: And you know, and frankly, I think voters are gonna
Speaker 1: wonder why so well, not just that, but I'm wondering
Speaker 1: if it's too little too late. I mean, we are
Speaker 1: eyeball deep in the mid term season. Some places are
Speaker 1: already holding early voting in their district. So is this
Speaker 1: coming way too little, way too late? Oh? Yeah, absolutely.
Speaker 1: The you know, the this line might have had some
Speaker 1: public residents six or more months ago, and if you,
Speaker 1: as a communications device, allowed it to develop, and you know,
Speaker 1: you make your case and try to bring the public
Speaker 1: with you. And that's probably how you bring Congress with you.
Speaker 1: But but that's not that's not happening. And the other
Speaker 1: thing I've mentioned briefly is that, you know, the Biden
Speaker 1: legislative achievements, whatever else they are, generally have not featured
Speaker 1: Biden's direct involvement. As I say, the Inflation Reduction Act
Speaker 1: is much more of a mansion product and president that
Speaker 1: was told the White House was told by the bipartisan
Speaker 1: people developing the infrastructure bill frankly, to stay out of negotiations.
Speaker 1: I mean that was publicly known at the time. So, um,
Speaker 1: you've got a White House here who has no persuasive
Speaker 1: ability to actually bring the Congress along with them, and
Speaker 1: you know, certainly not going to bring a lame duck
Speaker 1: Congress of along. And next year's is whether it's a
Speaker 1: whether it's Republican majorities or a split Congress is not
Speaker 1: is not a Congress that's going to do anything about
Speaker 1: this or react to Biden's proposals at all. Did you
Speaker 1: get the impression that the President is sort of holding
Speaker 1: his own party accountable for not doing this sooner because
Speaker 1: Democrats have been pushing for this for months, well exactly. Uh.
Speaker 1: You know, one reason I think of it as an
Speaker 1: own goal is you know, it is I'm not sure
Speaker 1: the White House understands the optics of this, frankly, And
Speaker 1: what it looks like is the president blaming his own
Speaker 1: rational party for not getting uh for not getting something done.
Speaker 1: I don't think that's a good look, and it's certainly uh,
Speaker 1: it certainly undermines the seriousness of what he says he wants,
Speaker 1: but it undermines the seriousness of Biden and Democrats politically.
Speaker 1: If they mean, if they're not on all fours and
Speaker 1: can't get anything done, now I've you know, why why
Speaker 1: vote for them to be blunted? But what would this
Speaker 1: then mean for the other business of government on Congress
Speaker 1: isn't going to be coming back until after the midterms
Speaker 1: are over with, But they still have spending bills they
Speaker 1: have to work on, they have the budget, they have
Speaker 1: all sorts of other issues that are on their plate.
Speaker 1: Is this gonna, I don't know, throw a little smoke
Speaker 1: up in the air and causes some confusion or cause
Speaker 1: them to be able to things to to actually grind
Speaker 1: to an even slower halt when I'm trying to say, yeah,
Speaker 1: well no, I think you're absolutely right. But the the
Speaker 1: the last business of this Congress, which will happen, you know,
Speaker 1: after Thanksgiving into December, is trying to come up with
Speaker 1: UH fiscal year three spending bills. UH in English, what
Speaker 1: that means is that the government will be three months
Speaker 1: behind on its own fiscal spending for this year, and
Speaker 1: we'll try to come up with full year spending bills.
Speaker 1: I never thought they'd be able to do that before
Speaker 1: the end of the year for a variety of reasons.
Speaker 1: I mean, they just don't seem ready. There's uh, there's
Speaker 1: squawking back and forth about whether or not they can
Speaker 1: uh add some debt limit, that ceiling language to it. Uh.
Speaker 1: This was already going to get kicked into uh with
Speaker 1: temper with another temporary spending bill get kicked into three
Speaker 1: and the new Congress, and that was even that's even
Speaker 1: more likely with this windfall profits tax value. All right,
Speaker 1: Terry Hayes, founder of Panagia Policy, I want to thank
Speaker 1: you for your perspective on this, and of course we're
Speaker 1: gonna keep watching it with you, particularly as the mid
Speaker 1: terms come right around the corner. SMP futures twenty seven
Speaker 1: points higher, DALF futures higher by one D sixty five points,
Speaker 1: now that futures one hundred three points higher. Much more
Speaker 1: still to come on Bloomberg day Break, Stay with us
Speaker 1: on this Tuesday morning. This is Bloomberg. Bloomberg Daybreak is
Speaker 1: brought to you by the New York Community. Trust your
Speaker 1: name will live on as a champion of the causes
Speaker 1: you care about four years to come through a charitable
Speaker 1: bequest to the New York Community Trust. Learned more at
Speaker 1: Philanthropist dot NYC. Broadcasting live from the Bloomberg the Interactive
Speaker 1: Broker Studio in New York, Bloomberg E Living Freedom to Washington,
Speaker 1: d C, Bloomberg to Boston, Bloomberg one O six one
Speaker 1: does San Francisco, Bloomberg nine sixty to the country Sirius
Speaker 1: XM Cho one nineteen and around the globe, the Bloomberg
Speaker 1: Business app and Bloomberg Radio dot Com. This is Bloomberg
Speaker 1: Daybreak and it's five thirty on Wall Street. Good morning.
Speaker 1: I'm Nathan Hager. Hi'm Amy Morris. Bloomberg day Break is
Speaker 1: brought to you by s E I imagine your asset
Speaker 1: management firms, operational infrastructure as a compet of advantage. Let
Speaker 1: s E I show you how at s E I
Speaker 1: C dot com slash I M S and we're just
Speaker 1: about four hours away from the open of US trading.
Speaker 1: Let's get you up to date on the news you
Speaker 1: need to know at this hour. US Futures are hired
Speaker 1: to start the week as investors Europe for this week's
Speaker 1: FED meeting and the October jobs report. The Fed, especially
Speaker 1: as front and center. According to Bloomberg macro strategist Vince Signarella,
Speaker 1: the Fed made pivots sooner than expected. I think that's
Speaker 1: what the markets are hoping for, some indication that the
Speaker 1: Fed acknowledges that their work is starting to find its
Speaker 1: way through to the economy, specifically in housing, as we
Speaker 1: saw last week pending home sales down over on a
Speaker 1: month over month basis. That's what the market is hoping for.
Speaker 1: Bloomberg's Vince Signerella says markets will respond negatively if the
Speaker 1: Fed does not forecast easing monetary policy in the near future.
Speaker 1: Expectations are for the FED to raise rates seventy five
Speaker 1: basis points tomorrow, followed by fifty in December. Meantime, in Australia,
Speaker 1: the Central bank hike to interest rates today by just
Speaker 1: a quarter percentage point sparked bets that the r b
Speaker 1: A is pivoting away for large types. Well, it has
Speaker 1: been a big day in Asia. Any Chinese stocks surged overnight,
Speaker 1: a speculation grows the government's making preparations to exit COVID restrictions.
Speaker 1: The Hang Sing in Hong Kong rose five percent, while
Speaker 1: stocks in China gained three point six percent, and Nathan,
Speaker 1: we're also seeing historic profits from big oil. Saudi Aramco
Speaker 1: and BP posted their second highest quarterly earnings this morning.
Speaker 1: That's after record profit from Exxon and Chevron. It has
Speaker 1: President Biden calling on Congress to impose higher taxes on
Speaker 1: big oil. Rather than increasing our investments in America or
Speaker 1: giving American consumers of break their excess profits, you're going
Speaker 1: back to their shareholders and buying back their stocks and
Speaker 1: the executive pays. I'm going to skyrocket, give me a break.
Speaker 1: Enough is enough by President Biden's promise to impose higher
Speaker 1: taxes will be hard to deliver. Democrats have unsuccessfully sought
Speaker 1: a windfall profit tax for more than a decade. In
Speaker 1: corporate news this morning, Amy, we were talking Credit Swiss again.
Speaker 1: Sherman Axel Layman tells us the Swiss Bank is not
Speaker 1: for sale if we pick it out where we need
Speaker 1: to go. And we took some bold and we the
Speaker 1: very important decisions for the group and it's now really
Speaker 1: about looking forward and to execute that plan. Credit Suis
Speaker 1: chairman Aga Lehman made the comments in an interview with Bloomberg,
Speaker 1: and you can hear more of that conversation shortly here
Speaker 1: on Bloomberg day break and had to travel. Note US
Speaker 1: airline passenger traffic has now passed pre pandemic levels. Just
Speaker 1: over fifteen million people went through t ESA over the
Speaker 1: past week, now higher than the same time, and futures
Speaker 1: are higher. Amy S and P futures are up thirty points,
Speaker 1: staff futures up one, nest Act futures higher by a
Speaker 1: hundred thirteen. Straight ahead your latest local headlines and the
Speaker 1: check of sports. This is Bloomberg. Thank you, Nathan. It's
Speaker 1: five thirty three on Wall Street. Let's bring in Michael
Speaker 1: bar with more on what else is going on in
Speaker 1: New York and around the world. Good morning Michael, Good
Speaker 1: morning Amy. A salary transparency law takes effect today in
Speaker 1: New York City. It requires most companies to include salary
Speaker 1: ranges when they post a job opening. Supporters say it's
Speaker 1: intended to close the pay gap for women and people
Speaker 1: of color, but critics argue it will do just the opposite.
Speaker 1: Maria Colla Curcio is CEO of Cindio, a company that
Speaker 1: makes software to analyze pay equity. As a company, if
Speaker 1: you have a philosophy of start low, stay low, or
Speaker 1: pay top dollar to the best negotiator that's going to
Speaker 1: very quickly catch up with you. From a pay equity
Speaker 1: and meeting pay gap perspective, a recent study found women
Speaker 1: are paid seventy three cents on the dollar compared to men.
Speaker 1: A deeply divided Supreme Court as art arguments that could
Speaker 1: end affirmative action policies at universities, Bloomberg said Baxter as
Speaker 1: the story the Conservative majority suggesting a readiness to abolish
Speaker 1: the practice. Chief Justice John Roberts, I don't see how
Speaker 1: you can say that the program will ever end. Your
Speaker 1: position is that race matters because it's necessary for diversity,
Speaker 1: which is necessary for the sort of education you want.
Speaker 1: It's not going to stop mattering. The affirmative action proponents
Speaker 1: at North Carolina and Harvard, arguing that the policies and
Speaker 1: sure diversity. Justice Clarence Thomas said he doesn't even know
Speaker 1: what diversity means in this context. In San Francisco, I'm
Speaker 1: a Baxter Bloomberg day Break, federal prosecutors say the man
Speaker 1: accused of attacking Paul Pelosi, the husband of House Speaker
Speaker 1: Nancy Pelosi, told police he wanted to hold the speaker
Speaker 1: hostage and breaker kneecaps if it depop has been charged
Speaker 1: with two federal crimes and a state count of attempted murder.
Speaker 1: Fans wearing fight anti Semitism shirts occupied some court side
Speaker 1: seats at the Brooklyn, Indiana game last night. Days after
Speaker 1: NETS guard Kyrie Irving tweeted out a link to a
Speaker 1: documentary film that includes anti Jewish tropes. Irving deleted tweet
Speaker 1: Sunday after a huge outcry, including criticism from NETS owner
Speaker 1: Joe Sian. Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty
Speaker 1: seven hundred journalists and analysts more than a hundred twenty countries.
Speaker 1: Michael barn this is Bloomberg Gaming. All right, Thank you, Michael.
Speaker 1: It's a thirty five on Wall Street time now for
Speaker 1: the sports. Were fourth brought to you by Tri State. Audie.
Speaker 1: Here's John stash Houart. Alright, Amy, thanks Nets and Pacers.
Speaker 1: We just heard they played a home at home finished
Speaker 1: up at Barkley's Indiana one the other night, and that
Speaker 1: was the nets fourth loss in rowan and three of
Speaker 1: them they allowed at least under twenty five points. At Barkley's.
Speaker 1: The Nets blew much of a point leave they held
Speaker 1: on beat. The Pacers won sixteen one on nine, just
Speaker 1: a second win of the season. The coach Steve net
Speaker 1: that was the message after the game. That was a
Speaker 1: message on film this morning. That was the message in
Speaker 1: in UH our walkthrough. Um, you know we we had
Speaker 1: a disastrous defensive game Saturday night, and so the guys responded.
Speaker 1: Proud of him. Now that effort energy. There were several
Speaker 1: uh Kevin Uran led the Nets with thirty six points
Speaker 1: Kyrie Irving as the Nets end of their four game
Speaker 1: losing streets at the Cleveland Browns, they upset the Bengals
Speaker 1: thirty two to thirteen. Nick Chub hundred yards rushing, two
Speaker 1: touchdowns and Marty Cooper hundred thirty two yards receiving. He
Speaker 1: scored a TV in the Browns five sacks of Baltimore
Speaker 1: now his sole possession of first a f C north
Speaker 1: of The Ravens just acquired linebacker Roquan Smith from Chicago.
Speaker 1: Smith leads the entire NFL and tackles. We'll see what
Speaker 1: happens today NFL trade deadline at four o'clock tonight, we're
Speaker 1: here for the first time from the College Football Playoff Committee.
Speaker 1: They will unveil the rankings. This week's a Pepole has
Speaker 1: Georgia and Tennessee ranked one two, and they meet Saturday
Speaker 1: in Athens. Michigan State suspending four football players that they're
Speaker 1: involving in a post game brawl the other night at Michigan,
Speaker 1: criminal charges could be coming. Phillies and Astro's Game three
Speaker 1: of the World Series tonight. Last night's rain out means
Speaker 1: Game five will now be Thursday, and if the series
Speaker 1: is still untill going, Friday will be an off day.
Speaker 1: John Stellar, Bloomberg Sports Team. All right, thank you, John.
Speaker 1: It's seven on Wall Street time now for the Tri
Speaker 1: State Business Report. And with that, here is Bloomberg's Denny
Speaker 1: spell Agree. A judge is blocking Penguin Random Houses more
Speaker 1: than two billion dollar acquisition of rivals Simon and Schuster.
Speaker 1: The federal judge agreed with the Justice Department that the
Speaker 1: merger would love and competition. Penguin Random Houses owner Bertelsman
Speaker 1: plans to appeal. Manhattan based Tornado Realty Trust reporting a
Speaker 1: drop in third quarter profit, but it's still beat estimates
Speaker 1: by some measures. Connecticut's xbo is spinning off its truck
Speaker 1: brokerage unit. Today. The Granwich based logistics business is one
Speaker 1: of the world's largest freight transporters. The r XO unit
Speaker 1: being spun off today makes a spot market and matching
Speaker 1: available trucks with loads and businesses revving at Parsippany, New
Speaker 1: Jersey based Avis, AVIS budget reporting earnings that beat even
Speaker 1: the highest estimates, and that's thanks to a travel rebound,
Speaker 1: especially overseas. Even so, AVIS could be vulnerable now to
Speaker 1: falling used car prices as it appreciates the value of
Speaker 1: its fleet with the Triestate Business Report on Denis Pellegrini.
Speaker 1: Thank you, Denise. It is five thirty eight on Wall Street.
Speaker 1: Bloomberg Radio is on the air from San Francisco to
Speaker 1: New York, London to Hong Kong. Let's check in with
Speaker 1: our global news team for some of the top stories
Speaker 1: heard on our three hundred affiliate radio stations around the world.
Speaker 1: UM Courtney Donaho on CAREL Dan Dallas. The airline passenger
Speaker 1: traffic has surged past levels. I'm Gina Serretti and for
Speaker 1: w w BBM in Chicago, I'm reporting that Boing has
Speaker 1: defeated a pilot's suit for lost wages after the seven
Speaker 1: thirty seven Max crashes. I'm Jeff Bellinger and on Wy
Speaker 1: o D in Miami. I'm reporting Florida has been dethroned
Speaker 1: on the annual list of Best places to retire From
Speaker 1: U S News and World Report. I'm Stephen Carol and
Speaker 1: Bloomberg d AD Digital Radio in London. We've been reporting
Speaker 1: on VP and dancing, a two point five billion dollars
Speaker 1: share buy back as it reports more bumper profits and
Speaker 1: those are some of the stories. Are hundred Bloomberg journalists
Speaker 1: and analysts are working on this morning around the world.
Speaker 1: It's nine on Wall Street. The following is an editorial
Speaker 1: from Bloomberg Opinion. This editorial was written by the Bloomberg
Speaker 1: Editorial Board. The migrants known as Dreamers, who were brought
Speaker 1: to the US as children, have long lived under the
Speaker 1: threat of deportation. With the mid terms looming, lawmakers may
Speaker 1: not get another chance to protect them. The DACA program
Speaker 1: allows these undocumented immigrants to study and work legally in
Speaker 1: the U S. DACA households paid billions in taxes but
Speaker 1: still lack clarity about their legal status. An impending court
Speaker 1: ruling could immediately revoke some enrollees right to work, which
Speaker 1: would be devastating for businesses. To the house has already
Speaker 1: passed a bill that would shield a DACA recipients from
Speaker 1: deportation and given them a path to citizenship. By partisan
Speaker 1: effort in the Senate would do much the same. The
Speaker 1: drama has gone on far too long for the dreamers
Speaker 1: and the families who live in fear. This editorial was
Speaker 1: written by the Bloomberg Editorial Board. For more Bloomberg opinion,
Speaker 1: please go to Bloomberg dot com, slash Opinion or O
Speaker 1: P I n go on the Bomberg terminal. These has
Speaker 1: been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every
Speaker 1: weekday at this time, and terminal customers can read more
Speaker 1: at opie I n go. SMP futures up by thirty
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Speaker 1: the markets every fifteen minutes during the trading day on Bloomberg,
Speaker 1: and futures are moving higher. SMP futures up thirty one
Speaker 1: point DAL futures up a D eighty eight, NASTACT futures
Speaker 1: higher by a hundred twenty points ten. Your treasury is
Speaker 1: up twenty two thirty seconds, the yield three point nine,
Speaker 1: and nime X screwed is up one point three at
Speaker 1: eighty seven dollar sixty three cents apparel. That's the Bloomberg
Speaker 1: Business Flash. Now here's Michael Barr with more on that's
Speaker 1: going on around the world. Michael, thank you very much. Nathan.
Speaker 1: The Supreme Court heard arguments involving Harvard and the University
Speaker 1: of North Carolina that could end the affirmative action process
Speaker 1: in college admissions. Former Israeli prem Minister Benjaminett and Yahoo
Speaker 1: cast his vote into Jerusalem is rarely the voting in
Speaker 1: their fifth parliamentary election in less than four years. They'll
Speaker 1: try to make up Game three of the World Series
Speaker 1: in Philadelphia. It reigned out between the Phillies and Astros.
Speaker 1: Last Night, Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quicktake, powered by more than twenty
Speaker 1: seven hundred journalists and analysts in more in one twenty countries.
Speaker 1: On Michael Barr and this is Bloomberg. All right, thank you, Michael.
Speaker 1: It's five forty eight on Wall Street. We're now going
Speaker 1: to bring you our interview with Credit Suis chairman Acte Lehman.
Speaker 1: Any bargain Huller is hoping to snap up Credit Suite
Speaker 1: may find themselves getting short shift in Zurich. Lehman spoke
Speaker 1: exclusively with Bloomberg Yvonne Man, saying that although it's stuck
Speaker 1: is down yet again, the lender is not open to
Speaker 1: take over discussions. He talked about the firm's plans moving
Speaker 1: forward and now he hopes to ease concerns over stability.
Speaker 1: All our questions about whether Credits Space is now a
Speaker 1: takeover target. Would you be open to any kind of
Speaker 1: takeover offers given some might find your share price got
Speaker 1: attractive right now? No, Look, we clearly have said this
Speaker 1: is a fantastic franchise you should not forget has a
Speaker 1: hunted sixty six years of regacy. You get fantastic businesses too.
Speaker 1: Else management business to business if you have asset management.
Speaker 1: So this is the core of the group and we
Speaker 1: are going to you know, to slife again, so we
Speaker 1: don't have any take over discussions. And at that point
Speaker 1: we truly believe we want to stay independent. Speaking about
Speaker 1: wealth management, which has always been your historic strength. Um,
Speaker 1: it seems to be now some investors that are still
Speaker 1: quite nervous about the stability of the bank. Many are
Speaker 1: holding off from bringing in new money business with cress
Speaker 1: suits until you have your health in order. What happens
Speaker 1: if those clients don't come back meaningfully before? Look, first
Speaker 1: of all, yes, there were a lot of rumors about
Speaker 1: the credits that was spreading the world that was really
Speaker 1: I think unfunded. Do you look to our liquidity, the ratious,
Speaker 1: look to the balance sheet strengths and now even more
Speaker 1: so as the strengths and the balance sheet and you
Speaker 1: clearly saw the reaction, which was one of the key
Speaker 1: objectives of the announcement was that, you know, eighty one
Speaker 1: spread sedious prints came significantly ly down, so that's a
Speaker 1: very strong signal of comfort. There was a significant amount
Speaker 1: of outflows the first two weeks of October. The firm
Speaker 1: has said that things are stabilized, but not quite reversed.
Speaker 1: Are you expecting those outflows to reverse y stable the reverse?
Speaker 1: It's true the beginning of October, with that social media storm,
Speaker 1: we had outflows. That has clearly stabilized. We even see
Speaker 1: some inflows coming, and I would anticipate that we will
Speaker 1: have further inflows in the weeks and months to come.
Speaker 1: Things like you're exiting out of businesses where maybe where
Speaker 1: profits are coming from. What's the logic in cutting cutting,
Speaker 1: cutting going forward? Criticism is really the wealth management centric
Speaker 1: franchise centered around entrepreneurs, wealthy clients and we don't need
Speaker 1: you know, that type of businesses that has quite isolated
Speaker 1: from the rest of the group. As you know, we
Speaker 1: are in the exclusive discussions with Apollo and with Pincross.
Speaker 1: I'm highly confident that over the next week we will
Speaker 1: come to agreement. What about for the asset management side,
Speaker 1: is there a sale or parts of it? All? These
Speaker 1: were all rumors. You know, we are the wealth manager
Speaker 1: and you know asset management goes very well alongside. We
Speaker 1: need to have and we are a multi specialist asset management,
Speaker 1: so we don't need to be the biggest globally, but
Speaker 1: we need to have those capabilities that we need also
Speaker 1: from a product and product provider perspective for our wealth
Speaker 1: mentioned clients and for institutional clients. This restructuring is being
Speaker 1: funded by a new investor of the Saudies. There are
Speaker 1: some questions being raised around the Swiss government and allowing
Speaker 1: this sort of steak just given the saudiest human rights record.
Speaker 1: How do you address this sort of geopolitical conflicts. First
Speaker 1: of all, we are very happy that we have an
Speaker 1: investors like the Saudi National Bank. It's a private institution
Speaker 1: and I think you know, this is also a region
Speaker 1: that is that is growing, sprawling reach, and so we
Speaker 1: are very happy that we could really secure that type
Speaker 1: of investment into you know, what they believe is a
Speaker 1: great franchise. Credit sists in terms of just the year
Speaker 1: that you've had. Are you joined in January and how
Speaker 1: has it been for you as a chairman and dealing
Speaker 1: with all this. No. Look when I took over, I
Speaker 1: joined the board of Creditist a year ago, first as
Speaker 1: the chair of the Risk Committee, and then you know,
Speaker 1: I took over as the chairman in January. It was
Speaker 1: quite busy, as you can imagine now twenty two last
Speaker 1: year was a nightmare year for Credits with the whole
Speaker 1: banking industry had super results and we had our biggest
Speaker 1: loss ever five billion, So you can imagine that that
Speaker 1: keeps a very very business. We had just too many
Speaker 1: shortcomings in the past and call it too many crisis
Speaker 1: as well as they were all popping up. So it
Speaker 1: was some two very very challenging years for the group.
Speaker 1: And yeah, but you know, I'm on one hand also
Speaker 1: excited about the progress that we're making with a new board,
Speaker 1: the new CEO, the executive board is largely new. I
Speaker 1: think we refined the strategy. We addressed some of the
Speaker 1: core issue that criticis was facing since the Grand Financial
Speaker 1: Crisis in really reposition in the organization. Making clear here
Speaker 1: that the Swiss business wealths management, the multi specialist asset management,
Speaker 1: this is at the court of the franchise is obviously
Speaker 1: special access to capital market capabilities. I think we figured
Speaker 1: out where we need to go, and we took some
Speaker 1: bold and really very important decisions for the group and
Speaker 1: it's now really about, you know, looking forward and to
Speaker 1: execute that plan. Credits with Chairman at A Lemon speaking
Speaker 1: with Bloomberg Van Man in Hong Kong. You can catch
Speaker 1: the full interview on Bloomberg dot com and on the
Speaker 1: Bloomberg terminal. Nathan all Right, Amy, thank you for coming
Speaker 1: up to five fifty four on Wall Street time for
Speaker 1: the Bloomberg LAWBREF brought to you by American Arbitration Association.
Speaker 1: Business disputes are inevitable, resolve faster with the American Arbitration Association,
Speaker 1: the global leader in alternative dispute resolution for over ninety years.
Speaker 1: More at a d R dot org. The Supreme Court's
Speaker 1: conservative majority has suggested they're ready to abolish the use
Speaker 1: of race in university admissions during oral arguments in cases
Speaker 1: challenging affirmative action programs at the Versity of North Carolina
Speaker 1: and at Harvard College. Opponents of affirmative action are seeking
Speaker 1: to overturn the courts two thousand three Grutter Versus Bollinger
Speaker 1: decision that reaffirmed that universities can consider race and admissions
Speaker 1: to bolster campus diversity. Justices were divided down ideological lines
Speaker 1: on the question of affirmative action. From Are Bloomberg's June
Speaker 1: Grosso speaks to Audrey Anderson, head of the higher education
Speaker 1: practice at Bassburian SIMS. Coming into this argument, most legal
Speaker 1: experts thought that affirmative action was on the cutting block.
Speaker 1: Did anything in the oral arguments indicate otherwise? No, not really.
Speaker 1: The only little asterisk I put on that is, you know,
Speaker 1: there were a lot of questions June about this twenty
Speaker 1: five year deadline of sorts language in the Grutter case,
Speaker 1: where Justice O'Connor, who wrote the majority opinion that it
Speaker 1: was the court's expectant sation that affirmative action would not
Speaker 1: be necessary in twenty five years, and there were a
Speaker 1: lot of questions to both sides about what does that mean?
Speaker 1: What should we make of that? And at one point
Speaker 1: Justice Barrett said, well, you know, it's not twenty five
Speaker 1: years yet. That was a kind of only ray of
Speaker 1: sunshine I saw if you were a supporter of affirmative action,
Speaker 1: that maybe she would think about, well, we should let
Speaker 1: it hang in there for a few more years. Other
Speaker 1: than that, I didn't hear anything that made me think
Speaker 1: that will get any decision other than an overruling of Grutter.
Speaker 1: Are the challengers here sort of swinging for the fences.
Speaker 1: Do they want no reference at all to race in
Speaker 1: the college admissions process. Well, that's where it's interesting. They
Speaker 1: want college admissions systems to be color blind, not race conscious.
Speaker 1: I was actually a little bit encouraged, frankly, to hear
Speaker 1: so many members of the court agreeing that if Rutter's overrule,
Speaker 1: universities could take into account race if an applicant brought
Speaker 1: it up in their essay. I've been very afraid that
Speaker 1: the next step that students for Fair Admissions and others
Speaker 1: like them would take would be to say that color
Speaker 1: blind means color blind, that if somebody talks about race,
Speaker 1: university really cannot consider it at all. Almost like you'd
Speaker 1: have to first have a clean team goes through the
Speaker 1: applications and redact anything that had race in it. And
Speaker 1: I'm so much sure we won't see that if Grutter's overturned.
Speaker 1: But you know, the court here was saying, well, no,
Speaker 1: it's not going to be that crazy. But what we're
Speaker 1: saying is not that crazy, everybody. I think that's where
Speaker 1: they were going with these questions. And that was Audrey Anderson,
Speaker 1: head of the higher education practice at Bassberry and Simms,
Speaker 1: speaking with Bloomberg's June Gross Up. You can catch more
Speaker 1: of that interview, plus analysis of the latest legal news
Speaker 1: by subscribing to the Bloomberg Law podcast or downloading the
Speaker 1: show at Bloomberg dot com. Slash podcasts, and attorneys can
Speaker 1: find exceptional legal research and business development tools at Bloomberg
Speaker 1: Law dot com and on the Bloomberg terminal at b Logo.
Speaker 1: Right now, futures are moving higher as the Fed gets
Speaker 1: ready to begin it's to day policy decision making meeting.
Speaker 1: S and p futures are up thirty three points, DAL
Speaker 1: futures up a hundred ninety eight and NASTAC futures are
Speaker 1: on the rise by a hundred twenty four points. Tenure
Speaker 1: Treasury is up twenty one thirty seconds. The yield three
Speaker 1: point nine five percent yield on the two year four
Speaker 1: point four one percent. Nimex screws higher by one point
Speaker 1: three percent or a dollar eleven at eighty seven dollar
Speaker 1: sixty four cents of barrel comics gold up eight tenths
Speaker 1: percent or twelve dollar sixty cents at sixteen fifty three
Speaker 1: thirty announced and the euro right now is training at
Speaker 1: point nine nine three zero against the dollar. You're listening
Speaker 1: to Bloomberg day Break