WEBVTT - Bloomberg Daybreak: September 28, 2022 - Hour 1 (Radio) 0:00:02.120 --> 0:00:05.320 Live from the Bloomberg Interactive Brooker Studios. This is is Bloomberg 0:00:05.400 --> 0:00:09.240 Day Bright for Wednesday, September two. Coming up this sour 0:00:09.520 --> 0:00:12.680 evacuations are underway and theme parks are shutting their doors 0:00:12.720 --> 0:00:15.920 as hurricaney and aims at Florida. Global stocks are heading 0:00:15.920 --> 0:00:18.640 for the lowest level in almost two years. Ten year 0:00:18.680 --> 0:00:22.200 treasury yields breached four percent, and the dollar rises after 0:00:22.239 --> 0:00:25.080 the White House tops down the prospect of a currency agreement, 0:00:25.239 --> 0:00:27.960 mixed reaction to the so called tent City for migrants 0:00:27.960 --> 0:00:31.840 and the Bronx plus Ukrainian President Zelenski dismisses the Krumlin 0:00:32.000 --> 0:00:35.400 run referendum as a farce. I'm Michael blar more a hand, 0:00:35.479 --> 0:00:38.560 I'm John Stash Edwards, the Yankees one ofto and clips 0:00:38.600 --> 0:00:41.040 the Al East. The Met's lost in an outide for 0:00:41.159 --> 0:00:46.680 first with Atlanta. That's all Strady Ahead on Bloomberg Day 0:00:46.720 --> 0:00:51.600 Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, 0:00:51.720 --> 0:00:55.840 d C, Bloomberg one O six one, Boston, Bloomberg nine sixties, 0:00:55.840 --> 0:00:59.600 San Francisco, Sirius x M one nine Team and around 0:00:59.640 --> 0:01:02.360 the World Old on Bloomberg Radio dot Com and via 0:01:02.440 --> 0:01:09.200 the Bloomberg Business app. Good morning, I'm Nathan Hagar and 0:01:09.280 --> 0:01:13.080 I'm Karen Moscow. US stock index futures are lower this morning, 0:01:13.200 --> 0:01:14.640 and we are coming up to five out one on 0:01:14.680 --> 0:01:16.960 Wall Street, and we checked the markets every fifteen minutes 0:01:17.000 --> 0:01:20.759 throughout the trading day on Bloomberg. SNP futures down twenty five, 0:01:20.800 --> 0:01:23.520 boys at own futures down a hundred forty nine, nasdack 0:01:23.600 --> 0:01:26.759 futures down a hundred twenty two, and the tenure treasury 0:01:26.800 --> 0:01:29.880 down ten thirty seconds. You know, three point nine eight percent. 0:01:30.000 --> 0:01:33.959 They yield on the two year four point to three percent. Nathan, Karen. 0:01:34.000 --> 0:01:36.280 We'll have much more on the market turmoil in just 0:01:36.400 --> 0:01:37.920 a minute, but first you want to bring you up 0:01:37.920 --> 0:01:40.520 to date on Hurricane Ian. It has just been upgraded 0:01:40.560 --> 0:01:43.399 to a dangerous category four storm with top winds at 0:01:43.400 --> 0:01:47.160 a hundred forty min taking him at Florida's Gulf coast. 0:01:47.400 --> 0:01:50.240 Bloomberg Meteorologist Rob Carroll and joins US now with the 0:01:50.360 --> 0:01:52.480 latest on the track of the storm. Good morning, Rob, 0:01:53.280 --> 0:01:56.560 Nathan and Karen. Hurricane Ian continues to move north northeast 0:01:56.600 --> 0:01:58.720 and around ten miles an hour this morning. Is a 0:01:58.920 --> 0:02:01.920 dangerous hurricane. The winds in excess of a hundred and 0:02:02.040 --> 0:02:04.080 twenty miles an hour. We were seeing wind gus over 0:02:04.160 --> 0:02:06.360 sixty miles an hour earlier this morning in Key West. 0:02:06.760 --> 0:02:09.359 The store will make landfall later today somewhere north of 0:02:09.440 --> 0:02:12.200 Fort Myers, who as far north as Tampa, and then 0:02:12.240 --> 0:02:14.760 it will start to move inland. We're expecting the hurricane 0:02:14.800 --> 0:02:16.840 force winds to extend out at least forty five miles 0:02:16.880 --> 0:02:18.760 from the center of circulation, so there's gonna be a 0:02:18.840 --> 0:02:21.560 lot of damage across that portion of West Florida between 0:02:22.280 --> 0:02:25.400 Fort Myers and the Tampa area. Storm surge is probably 0:02:25.400 --> 0:02:27.639 going to be an excess of ten feet. We'll see 0:02:27.720 --> 0:02:30.200 wind us over a hundred and twenty five miles an hour, 0:02:30.520 --> 0:02:32.480 and along the path of the storm, anywhere from five 0:02:32.520 --> 0:02:34.920 to ten inches of rain is likely to fall over 0:02:35.000 --> 0:02:37.560 the course of the next forty eight hours. Nathan and 0:02:37.639 --> 0:02:40.200 Karen alright, Rob, thank you, of course. He'll be checking 0:02:40.240 --> 0:02:43.639 in with Bloomberg meteorologist robbed Caroline throughout the morning, well 0:02:43.639 --> 0:02:46.760 ahead of the store, and Disney SeaWorld and Universal Orlando 0:02:46.919 --> 0:02:49.919 have shut their Florida theme parks through at least tomorrow. 0:02:50.200 --> 0:02:53.679 Tampa's main airport closed up yesterday. Orlando plans to do 0:02:53.760 --> 0:02:56.680 the same later this morning. Governor Rhonda Santis says about 0:02:56.720 --> 0:02:59.320 two and a half million Floridians need to get out 0:02:59.360 --> 0:03:02.760 of harm's way. If you are in an evacuation zone, 0:03:02.840 --> 0:03:06.680 particularly in those southwest Florida counties. Uh, you know your 0:03:06.720 --> 0:03:10.079 time to evacuate is coming to an end. Uh. You 0:03:10.200 --> 0:03:13.679 need to evacuate now. Governor around to Santas spoke with 0:03:13.720 --> 0:03:16.600 the President Biden last night. The President says FEMA has 0:03:16.639 --> 0:03:19.480 deployed seven hundred people to Florida and up to seven 0:03:19.560 --> 0:03:22.720 thousand members of the National Guard are being activated. The 0:03:22.960 --> 0:03:25.760 storm has also forced the House January six Committee to 0:03:25.800 --> 0:03:29.519 postpone its latest public hearing this afternoon. No new date 0:03:29.600 --> 0:03:31.440 has been set. All right, Karen, Let's get back to 0:03:31.480 --> 0:03:34.360 the markets now. The equity sell off continues this morning. 0:03:34.400 --> 0:03:36.880 Global stocks are heading for their lowest level in almost 0:03:36.920 --> 0:03:40.400 two years. The yield on tenure treasuries breached four percent 0:03:40.520 --> 0:03:42.720 for the first time since two thousand eight, and the 0:03:42.880 --> 0:03:45.600 dollar is soaring After the White House talked down the 0:03:45.680 --> 0:03:48.840 prospect of a currency agreement to weaken the green back. 0:03:49.120 --> 0:03:52.200 White House National Economic Council Director Briand says he does 0:03:52.280 --> 0:03:56.040 not expect another five type deal among major economies to 0:03:56.200 --> 0:03:59.360 counter dollar strength. Do you see any possibility of a 0:03:59.480 --> 0:04:02.680 global cord to kind of adjust uh currency values the 0:04:02.720 --> 0:04:04.880 way there was with the Plaza qarders. That's just not 0:04:05.040 --> 0:04:09.000 something you're focused on. I don't anticipate that. That's UH. 0:04:09.160 --> 0:04:11.560 That that's that, that's where we're headed. White House National 0:04:11.640 --> 0:04:14.760 Economic Council Director Brian d spoke there with David Rubinstein 0:04:14.920 --> 0:04:18.799 on peer to peer conversations on Bloomberg Television. Well Naked. 0:04:18.839 --> 0:04:21.680 An aggressive FED has also a few of the dollars rally. 0:04:21.760 --> 0:04:24.000 A chorus of central bankers is doubling down in the 0:04:24.080 --> 0:04:26.600 need to keep raising rates in the face of inflation. 0:04:26.920 --> 0:04:29.960 San Francisco FED President Mary Daley says the hikes could 0:04:30.080 --> 0:04:32.720 have an impact on the labor market gap. To balance 0:04:32.800 --> 0:04:35.480 that off with our dual mandate with full employment and 0:04:35.560 --> 0:04:39.320 trying to navigate that to bring inflation down while we 0:04:39.520 --> 0:04:44.360 do so as gently as possible, not to tip unnecessarily 0:04:44.480 --> 0:04:48.720 the economy into a downturn that actually influences the full 0:04:48.760 --> 0:04:52.160 employment part of our mandate is a struggle in San Francisco. 0:04:52.240 --> 0:04:55.080 FED President Mary Daily is currently not a voting member 0:04:55.160 --> 0:04:57.200 on the f O m C well the dollars. Recent 0:04:57.240 --> 0:05:00.280 gains against the euro and the pound accelerated after the 0:05:00.440 --> 0:05:04.159 UK announced massive tax cuts last week. Bank of England 0:05:04.240 --> 0:05:08.040 chief economist Hugh Phill says a significant monetary policy response 0:05:08.240 --> 0:05:12.400 is needed in a context where there is a rebalancing 0:05:12.520 --> 0:05:16.400 of the macro policy environment and an anticipation of loose, 0:05:16.720 --> 0:05:20.400 looser fiscal policy. I think it's hard not to draw 0:05:20.480 --> 0:05:26.200 the conclusion that all this will require a significant monetary 0:05:26.279 --> 0:05:29.680 policy response. Bo e's chief economist hub Phill says the 0:05:29.760 --> 0:05:32.440 best time to act is at the institution's next meeting 0:05:32.520 --> 0:05:36.839 in November. Meanwhile, Nathan, global criticism of the UK's fiscal 0:05:36.960 --> 0:05:39.599 plan is growing this morning, and let's go to London 0:05:39.640 --> 0:05:42.440 and get the details from Bloomberg's un parts. Good morning U, 0:05:42.600 --> 0:05:44.520 and good morning Nathan and Karen. The i m F 0:05:44.640 --> 0:05:47.680 has delivered a stinging rebuke of the UK's new unfunded 0:05:47.760 --> 0:05:50.960 tax plans. The International Monetary Funds says the government's package 0:05:51.000 --> 0:05:54.080 of tax cuts, the biggest in fifty years, are excessive 0:05:54.400 --> 0:05:57.719 and in need of revision. It says physical policy should 0:05:57.760 --> 0:06:01.359 not work across purposes with monetary to see Charles Laquasi 0:06:01.400 --> 0:06:04.440 Quos meets with top Bullstreet bankers in London. Later today, 0:06:04.680 --> 0:06:07.040 Hill sets up by his UK gowth plan is still 0:06:07.120 --> 0:06:09.600 the right thing to do in London, Amun puts splin 0:06:09.600 --> 0:06:11.679 Bok day break, Are you and thanks? Back in the US, 0:06:11.760 --> 0:06:13.640 the White House may be getting ready to shake up 0:06:13.640 --> 0:06:17.400 its economic team. According to Axios, officials are preparing for 0:06:17.480 --> 0:06:21.200 Treasury Secretary Janet Yelling to depart after the midterms. A 0:06:21.279 --> 0:06:24.320 White House spokesperson says the Secretary does not plan to leave, 0:06:24.360 --> 0:06:27.320 and top economic advisor Brian Deese also says he has 0:06:27.400 --> 0:06:30.560 no plans to depart either. Melon Capitol Hill Nathan House 0:06:30.600 --> 0:06:33.520 Democrats have released a bill that would restrict stock ownership 0:06:33.600 --> 0:06:37.000 for high ranking government officials that includes members of Congress, 0:06:37.160 --> 0:06:41.160 the president, vice president, Supreme Court justices, and their spouses 0:06:41.320 --> 0:06:45.360 and dependent children. It covers commodities, futures, cryptocurrency, or other 0:06:45.400 --> 0:06:48.440 digital assets. Public officials would have to put them in 0:06:48.520 --> 0:06:51.320 a blind trust or divest their whol things. And we're 0:06:51.320 --> 0:06:53.960 watching shares of Biogen this morning. They are soaring up 0:06:54.040 --> 0:06:57.200 forty six percent in the pre market. Biogen and its partner, 0:06:57.320 --> 0:07:01.359 as I say, they're drugs significantly slow to Alzheimer's disease. 0:07:01.680 --> 0:07:04.200 That would make it the first medicine to blunt progression 0:07:04.240 --> 0:07:07.479 of the most common dementia in a definitive, large scale trial. 0:07:07.960 --> 0:07:10.000 Bloomber day Break is brought to you by se I 0:07:10.160 --> 0:07:13.840 Imagine your asset management firms. Operational infrastructure is a competitive 0:07:13.840 --> 0:07:16.400 advantage that see I show you how at se I 0:07:16.440 --> 0:07:19.520 c dot com slash I m s. This is Bloomberg. 0:07:23.480 --> 0:07:25.480 Thank you, Karen. It's five oh seven on wall Stream. 0:07:25.480 --> 0:07:27.200 We got an accident on the South New York State 0:07:27.240 --> 0:07:29.720 through a It's close to the tapan Zee Bridge and 0:07:29.800 --> 0:07:32.720 it's fifty four degrees in Central Park. Michael Barr has 0:07:32.800 --> 0:07:34.559 more on what's going on in New York and around 0:07:34.560 --> 0:07:37.280 the world. Good morning, Michael, Good morning Nathan. This controversy 0:07:37.360 --> 0:07:40.720 over a temporary humanitarian relief center being built in the 0:07:40.760 --> 0:07:44.400 Bronx as more immigrants arrived from Texas. The so called 0:07:44.440 --> 0:07:47.320 Tent City and Orchard Beach will be heated and can 0:07:47.400 --> 0:07:50.680 house up to a thousand migrants. Mayor Eric Adams says 0:07:50.760 --> 0:07:53.320 the tents are supposed to be a temporary stopped from migrants. 0:07:53.320 --> 0:07:55.360 Says they get on their feet. We want to make 0:07:55.400 --> 0:07:59.920 sure that we bring people into a safe, clean environment 0:08:00.280 --> 0:08:03.320 as we process them for a few days to figure 0:08:03.320 --> 0:08:05.360 out their knees and move them to the right location. 0:08:06.040 --> 0:08:09.120 But immigrant rights advocates say this is a terrible location, 0:08:09.280 --> 0:08:13.080 far from mass transit or other services the migrants might need, 0:08:13.480 --> 0:08:16.600 and some residents say they are fearful. New York Mayor 0:08:16.880 --> 0:08:19.680 Eric Adams talked about his return from Puerto Rico and 0:08:19.800 --> 0:08:23.440 the Dominican Republic and the aftermath of Hurricane Fiona. New 0:08:23.520 --> 0:08:26.200 York lawmakers are calling for more federal aid to help 0:08:26.280 --> 0:08:29.160 with recovery for the island. New York City Council Member 0:08:29.280 --> 0:08:32.920 Oswald pholice, what's happening in Puerto Rico and the Dominican 0:08:33.000 --> 0:08:37.640 Republic is extremely sad. It's a horrible tragedy. These are 0:08:37.760 --> 0:08:41.880 communities that have worked for everything that they have, those 0:08:41.920 --> 0:08:46.040 small businesses, those homes, they have worked for it. Council 0:08:46.120 --> 0:08:48.559 Member Police says the City of New York will be 0:08:48.800 --> 0:08:52.040 with Puerto Rico and the Dominican Republic every step of 0:08:52.080 --> 0:08:56.079 the way. Moscow backed officials declared that all four occupied 0:08:56.120 --> 0:09:00.280 regions in Ukraine voted in favor of joining Russia. Ussia 0:09:00.360 --> 0:09:04.479 conducted what Ukrainian leader Voladimir Zelenski called a sham referendum. 0:09:04.880 --> 0:09:09.000 US Ambassador Linda Thomas Greenfield the United States will never 0:09:09.200 --> 0:09:14.560 recognize any territory Russia attempts to seize are allegedly annex 0:09:14.920 --> 0:09:19.360 as anything other than part of Ukraine. Ambassador Thomas Greenfield 0:09:19.720 --> 0:09:23.520 the US will allow a limited number of refugees in three. 0:09:23.640 --> 0:09:26.280 President Biden said he would welcome up to a hundred 0:09:26.280 --> 0:09:28.800 twenty five thousand refugees this year and will let in 0:09:28.880 --> 0:09:31.880 the same number in the next one of the January 0:09:32.000 --> 0:09:35.240 sixth rioters who attack police officer Michael Phone has been 0:09:35.320 --> 0:09:38.400 sentenced more than seven years in prison. Kyle Young a 0:09:38.480 --> 0:09:42.000 Vama began crying and begging for forgiveness during his sentencing. 0:09:42.520 --> 0:09:44.920 Global News twenty four hours a day on air and 0:09:45.120 --> 0:09:48.439 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:48.480 --> 0:09:51.280 journalists and analysts in more than a hundred twenty countries. 0:09:51.320 --> 0:09:53.959 How Michael Barr and this is Bloomberg, Nathan, Thank you, 0:09:54.080 --> 0:10:01.160 Michael five O nine on Street Time for the Blueberg 0:10:01.240 --> 0:10:03.840 Sports Update. Good Morning, John stenshow in Morning Night. Then 0:10:03.840 --> 0:10:06.559 the Yankees open last night's celebration in Toronto not the 0:10:06.640 --> 0:10:08.439 only one they'll have. They beat the Blue Jays five 0:10:08.480 --> 0:10:10.840 to two. Is Labor Torres at three hit three RBIs, 0:10:10.880 --> 0:10:13.160 and Jamison ti Own pitched into the eighth inning, got 0:10:13.200 --> 0:10:16.360 his team leading fourteenth win for Aaron Judge, a line 0:10:16.400 --> 0:10:19.559 out in the first inning, then four straight walks. So again, 0:10:19.720 --> 0:10:22.280 no home run numbers sixty one, but a division title 0:10:22.640 --> 0:10:25.559 for the Yanks there twenty, and they take advantage of 0:10:25.559 --> 0:10:28.120 the new format where the top two teams get a 0:10:28.200 --> 0:10:30.400 first round by into the division series. So in the 0:10:30.440 --> 0:10:32.959 a L, that's the Yanks and Astros. In the NL, 0:10:33.040 --> 0:10:36.360 the Dodgers will be joined by whoever wins the NL East. 0:10:36.400 --> 0:10:38.599 And right now that's a flat footed tie between the 0:10:38.679 --> 0:10:41.199 Mets and Bray's Atlanta one eight two at Washington. The 0:10:41.280 --> 0:10:44.120 Mets lost at City Field in Miami, six to four. 0:10:44.200 --> 0:10:47.200 Carlos Carrasco lasted just three innings, gave up four runs, 0:10:47.480 --> 0:10:50.240 Trevor Williams allowed two more, peele Lonzo and defeat a 0:10:50.320 --> 0:10:53.160 three run homer is forty. He leads the majors with 0:10:53.200 --> 0:10:55.600 a hundred and thirty one rb I seven games ago, 0:10:56.160 --> 0:10:58.920 including three this weekend in Atlanta. If the two teams 0:10:59.000 --> 0:11:01.640 finished in a tie, it's the Mets who will almost 0:11:01.679 --> 0:11:03.480 certainly won the tie break. For the only way Atlanta 0:11:03.520 --> 0:11:06.079 wins the season series is if they sweep this weekend, 0:11:06.120 --> 0:11:08.640 and if they do, it's unlikely the two teams will 0:11:08.679 --> 0:11:11.280 finished tie. The Giants made official the knee injury suffered 0:11:11.280 --> 0:11:14.040 by Sterling Shepard Monday night is a season and being 0:11:14.080 --> 0:11:17.040 torn intl all as well in Brooklyn after at Turtlene 0:11:17.040 --> 0:11:19.240 off season where Kevin Rant demand of the Nets trader 0:11:19.440 --> 0:11:22.240 unless they fire coach neednt knowing Kevin, as long as 0:11:22.280 --> 0:11:24.839 I haven't didn't really bother me the way, maybe everyone 0:11:24.880 --> 0:11:27.760 would think, you know, that's a part of being competitors. 0:11:27.840 --> 0:11:32.280 I wasn't like um overly surprised, and I wasn't even 0:11:33.360 --> 0:11:35.400 said the next are like a family, and all families 0:11:35.480 --> 0:11:38.880 have issues, John Stature, that were Bloomberg Sports all right, John, 0:11:38.920 --> 0:11:41.880 thanks SMP futures right now down thirty five points, Sound 0:11:41.920 --> 0:11:44.600 Futures down two and at thirty three. Nastack futures leading 0:11:44.640 --> 0:11:47.680 the declines this morning, down one or a hundred forty 0:11:47.760 --> 0:11:51.120 nine points. Tenure Treasury down fourteen thirty seconds. The yield 0:11:51.160 --> 0:11:53.319 back at four percent yield on the two year four 0:11:53.400 --> 0:11:58.160 to five. As we continue to track Category four Hurricane 0:11:58.280 --> 0:12:01.319 Ian taking aim at Fars Gulf Coast. We check in 0:12:01.400 --> 0:12:08.240 next with Bloomberg senior insurance analist, Matthew Palazola Bloomberg eleven 0:12:08.280 --> 0:12:10.319 three oh weather sunny today in New York I near 0:12:10.360 --> 0:12:14.600 seventy degrees up for sixties tomorrow and Friday. Right now, 0:12:14.679 --> 0:12:17.920 it's fifty four under a clear sky in Central Park. 0:12:18.080 --> 0:12:25.200 Good morning, markets, headlines and breaking news twenty four hours 0:12:25.240 --> 0:12:28.199 a day at Bloomberg dot Com, the Bloomberg Business at 0:12:28.320 --> 0:12:31.680 and at Bloomberg Quick Tape. This is a Bloomberg Business 0:12:31.720 --> 0:12:40.520 Flash and I'm Karen Moscow. The dollars soaring into another 0:12:40.640 --> 0:12:42.920 record after the White House talked down the prospect of 0:12:43.040 --> 0:12:46.360 weakening the currency, the continuing global bond route, pushing ten 0:12:46.440 --> 0:12:48.600 year treasury yields to the highest and S two thousand 0:12:48.720 --> 0:12:51.760 eight and UK thirty year yields to the highest. Since 0:12:53.080 --> 0:12:55.319 we checked the markets every fifteen minutes throughout the trading 0:12:55.440 --> 0:12:59.480 day on Bloomberg, and futures are lower. SNP futures down 0:12:59.600 --> 0:13:02.520 forty two points down, futures down two hundred seventy four, 0:13:03.000 --> 0:13:06.319 nasdack futures down one hundred seventy seven. The decks in 0:13:06.400 --> 0:13:09.720 Germany is down two point one percent ten Your treasury 0:13:09.760 --> 0:13:12.520 down fourteen thirty seconds yield four percent. The yield on 0:13:12.600 --> 0:13:15.280 the two year four point to five percent. Nine X 0:13:15.280 --> 0:13:18.040 Screwed oil is down to ten percent or thirteen cents 0:13:18.080 --> 0:13:20.720 and seventy eight dollars thirty eight cents of barrel comes 0:13:20.760 --> 0:13:23.080 goal down seven tenths per cent or ten dollars seventy 0:13:23.120 --> 0:13:27.000 cents at sixteen twenty five fifty announce. The euro is 0:13:27.080 --> 0:13:29.880 at point nine five four two against the dollar British 0:13:29.920 --> 0:13:33.360 found one point oh six seven zero and the yen 0:13:34.360 --> 0:13:37.880 four point seven nine. Looking at bitcoin, it's down two 0:13:37.880 --> 0:13:42.120 and a half percent at eighteen thousand, five hundred eighty dollars. 0:13:42.200 --> 0:13:44.640 That's a bloomberg business flash. Now here's Michael Barr with 0:13:44.720 --> 0:13:47.160 more on what's going on around the world. Michael, thank 0:13:47.200 --> 0:13:49.559 you very much. Timer and hurricane and it's churning in 0:13:49.600 --> 0:13:52.160 the Gulf of Mexico and is about seventy five miles 0:13:52.240 --> 0:13:55.760 from Naples, Florida. The National Hurricane Center says e n 0:13:55.880 --> 0:14:00.160 has strengthened to a category four storm. Thousands of nights 0:14:00.200 --> 0:14:03.520 have been canceled At the United Nations stop diplomats are 0:14:03.559 --> 0:14:08.320 dismissing the results of staged referendums in Russia's occupied areas 0:14:08.360 --> 0:14:11.160 of Ukraine. Some Ukrainians say they were forced to vote 0:14:11.200 --> 0:14:14.960 at gunpoint. In baseball, the Yankees clinched the A L East, 0:14:15.040 --> 0:14:18.120 beating the Blue Jay's five to Aaron Judge was walked 0:14:18.160 --> 0:14:21.360 four times and remains at sixty home runs, one shy 0:14:21.480 --> 0:14:25.280 of Rojermari's one a L record. The Mats lost, the 0:14:25.360 --> 0:14:28.760 Red Sox down, the Orioles thirteen nine, the Nationals and 0:14:28.960 --> 0:14:32.680 A's lost. The Giants won Global news twenty four hours 0:14:32.720 --> 0:14:35.160 a day on air and on Bloomberg Quick Take, powered 0:14:35.200 --> 0:14:37.920 by more than twenty seven hundred journalists and analysts and 0:14:37.960 --> 0:14:40.400 more than a hundred twenty countries. Michael Barr and this 0:14:40.640 --> 0:14:42.840 is Bloomberg. Nathan all right, Michael, thank you. It's five 0:14:42.920 --> 0:14:46.000 nineteen on Wall Street Life from the Bloomberg Interactive Brokers Studios. 0:14:46.080 --> 0:14:48.520 This is Bloomberg Daybreak. Also want to pass along some 0:14:48.600 --> 0:14:51.840 headlines crossing the Bloomberg terminal from Japan and South Korea 0:14:51.920 --> 0:14:56.160 saying that North Korea has apparently fired an unidentified ballistic 0:14:56.240 --> 0:14:59.800 missile towards the East Sea off the Korean peninsula. Will 0:14:59.800 --> 0:15:03.200 can can you monitoring those developments for you. Let you 0:15:03.280 --> 0:15:05.240 know any further details as soon as we get them. 0:15:05.440 --> 0:15:07.520 In the meantime, we do want to keep our focus 0:15:07.680 --> 0:15:10.880 on hurricane in taking aim at the Florida Gulf Coast. 0:15:11.160 --> 0:15:14.440 Joining us now is Matthew Palazzola. He's a senior insurance 0:15:14.480 --> 0:15:18.240 analyst for Bloomberg Intelligence, and we bring him on this 0:15:18.360 --> 0:15:22.400 morning because this storm is shaping up to be one 0:15:22.440 --> 0:15:26.760 of the costliest potentially in US history. Particularly we're talking 0:15:26.760 --> 0:15:29.560 about a Category four storm. If it keeps up that 0:15:29.640 --> 0:15:32.960 strength and takes him at a center of population, we're 0:15:33.000 --> 0:15:38.760 talking serious potential damages here. Matthew. Yeah. So you know, 0:15:38.960 --> 0:15:41.680 there's there's a slight bit of good news just this morning. 0:15:41.760 --> 0:15:45.200 There's the five am forecast from the National Hurricane Center. 0:15:45.360 --> 0:15:47.880 And if we're talking you know, this is certainly going 0:15:47.920 --> 0:15:50.400 to be a large event, but if we're talking dollar 0:15:50.600 --> 0:15:54.480 value property damage, it looks like the path is shifted 0:15:54.680 --> 0:15:57.760 even further south. So the worst case scenario was a 0:15:57.840 --> 0:16:00.440 direct hit on Tampa Bay from a property much point 0:16:00.440 --> 0:16:02.800 of view, and it looks like at least, you know, 0:16:02.960 --> 0:16:05.880 as of five am this morning, we might avoid that 0:16:06.200 --> 0:16:10.560 worst case scenario people were talking about in the industry. Uh, 0:16:11.400 --> 0:16:15.200 property values and damages in the hundred billion dollar range 0:16:15.440 --> 0:16:17.640 in a in a worst case scenario. But it looks 0:16:17.680 --> 0:16:19.960 like we're actually going to avoid that, all right, So 0:16:20.160 --> 0:16:24.720 what's the base case scenario? Based on the forecast that 0:16:24.800 --> 0:16:27.360 we're getting now the current track of the storm. Are 0:16:27.400 --> 0:16:31.240 we still expecting that it could touchdown make landfall on 0:16:31.360 --> 0:16:35.480 the Gulf coast to Florida as a category for I 0:16:35.640 --> 0:16:38.640 think these storms usually weekend kind of right before they 0:16:38.680 --> 0:16:41.360 get there. But it still looks like the forecast is 0:16:41.360 --> 0:16:45.160 a category three or four as it makes landfall um 0:16:45.760 --> 0:16:49.600 south of Tampa. So yes, definitely going to make landfall there. Um. 0:16:50.160 --> 0:16:52.600 What we try to do is insurance analysts is look 0:16:52.680 --> 0:16:56.120 at analog storm, So what what storms took a similar path? 0:16:56.240 --> 0:16:59.560 How much do they cost insurance companies? Uh, what I'm 0:16:59.600 --> 0:17:03.560 looking now is two thousand four Hurricane Charlie, which took 0:17:03.800 --> 0:17:06.879 a pretty similar path. It was a category four when 0:17:06.920 --> 0:17:09.320 it made landfall. It was actually a little further south 0:17:09.840 --> 0:17:15.359 at that time. It costs insures eleven billion dollars um. 0:17:16.119 --> 0:17:19.640 There's estimates out there from insurance brokers that say similar 0:17:19.680 --> 0:17:23.119 events could be in the fifteen to thirty five billion 0:17:23.200 --> 0:17:27.320 dollar range. Now, that's that's the kind of level that 0:17:27.560 --> 0:17:30.879 the insurance industry in Florida can handle, isn't it. I 0:17:30.960 --> 0:17:33.760 mean it's not like hurricanes or anything new for the 0:17:33.840 --> 0:17:38.119 Sunshine Stain certainly not. So. These are companies. This is 0:17:38.119 --> 0:17:40.800 their bread and butter um. I would say at the 0:17:40.960 --> 0:17:43.919 high end of that, the thirty five billion dollar lock. Uh. 0:17:44.000 --> 0:17:48.760 The California market is made up of mutual players like 0:17:48.880 --> 0:17:51.480 State Farm, It's made up of a state fund which 0:17:51.600 --> 0:17:54.600 is essentially funded by the taxpayers, and then you have 0:17:54.840 --> 0:17:59.160 large national players and small regional players. At the thirty 0:17:59.240 --> 0:18:03.720 five billion dollar are lost. The small regional players could 0:18:03.760 --> 0:18:07.520 be in trouble, but the large companies that I cover, 0:18:08.000 --> 0:18:11.960 like All State, chub Progressive, this is not going to 0:18:12.000 --> 0:18:14.360 be a small thing for them, but a very manageable 0:18:14.400 --> 0:18:16.320 ef that even at the high end. You got about 0:18:16.320 --> 0:18:19.080 a minute left here, Matthew. How long of a recovery 0:18:19.200 --> 0:18:21.600 could we be looking at from this? And talk a 0:18:21.640 --> 0:18:24.119 little bit more about the reinsurance market, because they've been 0:18:24.160 --> 0:18:27.240 having some struggles in Florida, haven't they. Yeah, there's been 0:18:27.359 --> 0:18:32.000 a significant problem in Florida with being able to obtain reinsurance, 0:18:32.280 --> 0:18:36.120 which is insurance for insurance companies. So the smaller companies 0:18:36.160 --> 0:18:38.840 that I talked about have not been able to get 0:18:38.920 --> 0:18:42.480 affordable reinsurance and some of them have actually gone insolvent 0:18:42.640 --> 0:18:45.159 or left the state. And what this has done is 0:18:45.440 --> 0:18:48.560 caused problems for homeowners in the States, so they can't 0:18:48.600 --> 0:18:52.719 even get insurance if their insurance company can't get reinsurance. UM. 0:18:53.280 --> 0:18:55.639 As far as the recovery, you know, the insurers are 0:18:55.960 --> 0:18:59.320 on the ground almost immediately right away trying to work 0:18:59.359 --> 0:19:02.200 with people like this is a home business, is a 0:19:02.320 --> 0:19:06.800 short tail business. Insurers are are complaying out pretty soon. 0:19:07.000 --> 0:19:10.560 So you know, I, without seeing where it's hitting and 0:19:10.680 --> 0:19:13.480 how strong, I can't really talk too much about the recovery, 0:19:13.640 --> 0:19:16.720 but you know, certainly going to be a big event. Yeah, 0:19:16.840 --> 0:19:20.119 we're going to continue monitoring it, of course. Matthew Palazola, 0:19:20.200 --> 0:19:22.800 thanks again for being with us necessarily morning hour. Matthew 0:19:22.840 --> 0:19:26.200 Palazola as a senior insurance analyst for Bloomberg Intelligence who 0:19:26.200 --> 0:19:28.360 will be very busy for the next several days here 0:19:28.400 --> 0:19:32.840 with Hurricane Ian now a dangerous category four store maximum 0:19:32.920 --> 0:19:35.440 wins a hundred forty miles an hour according to the 0:19:35.560 --> 0:19:39.640 National Hurricane Center Last Check Center about seventy five miles 0:19:39.960 --> 0:19:43.640 away from Naples, Florida, and it is currently on track 0:19:43.760 --> 0:19:47.040 to come ashore on the Florida Gulf Coast near the 0:19:47.119 --> 0:19:51.639 Tampa Bay area sometime late today. Looking at the market's 0:19:51.880 --> 0:19:55.359 futures are selling off. S and P futures down forty 0:19:55.440 --> 0:19:59.399 four points, Dow futures down two NASDAC futures down a 0:19:59.520 --> 0:20:08.400 hundred seventy eight points. This is Bloomberg Bloomberg eleven three 0:20:08.440 --> 0:20:10.879 oh weather for the city. Nice for the rest of 0:20:10.920 --> 0:20:13.080 the week. Sunshine near seventy today, will be in the 0:20:13.200 --> 0:20:16.600 upper sixties of sunny skies tomorrow and Friday. Right now 0:20:16.720 --> 0:20:24.320 fifty four in Central Park, broadcasting live from the Bloomberg 0:20:24.400 --> 0:20:27.960 Interactive Brook Studio in New York. Bloomberg E living freed 0:20:28.240 --> 0:20:32.119 to Washington, d C, Bloomberg N one to Boston, Bloomberg 0:20:32.160 --> 0:20:35.520 one O six one does San Francisco, Bloomberg sixt to 0:20:35.600 --> 0:20:38.240 the country, Sirius XM chant A one nine te and 0:20:38.359 --> 0:20:41.680 around the globe the Bloomberg Business app in Bloomberg Radio 0:20:41.800 --> 0:20:50.760 dot Com. This is Bloomberg Daybreak and it's five thirty 0:20:50.800 --> 0:20:53.399 on Wall Street. Good morning. I'm Nathan Hager, and I'm 0:20:53.480 --> 0:20:56.200 Karen Moscow. We are just about four hours away from 0:20:56.240 --> 0:20:58.040 the open of US trading. Let's get you up to 0:20:58.119 --> 0:20:59.800 date in the news. You need to know what the shower. 0:21:00.240 --> 0:21:04.240 Hurricane Ian is now a dangerous Category four storm taking 0:21:04.280 --> 0:21:08.040 aim at Florida's Gulf coast and threatening to do serious damage. 0:21:08.200 --> 0:21:12.520 Bloomberg meteorologists Robbed Caroline is tracking the storm. Rob Karen 0:21:12.560 --> 0:21:15.040 and Nathan. The eye of the hurricane very apparent on 0:21:15.080 --> 0:21:17.439 the radar out of the Key West area. We can 0:21:17.480 --> 0:21:20.720 see it working its way north northeast. It's paralleling the 0:21:20.800 --> 0:21:23.400 coast of western Florida. At some point today it will 0:21:23.440 --> 0:21:25.919 turn more towards the northeast and that allow it across 0:21:25.960 --> 0:21:28.720 the coast somewhere north of Fort Myers to as far 0:21:28.880 --> 0:21:31.840 north as about Tampa. Looks like the storm surge is 0:21:31.880 --> 0:21:33.320 going to be in excess of ten feet. Will be 0:21:33.320 --> 0:21:35.320 seeing wind gusts probably over a hundred and twenty five 0:21:35.359 --> 0:21:38.000 miles now with the storm, and excessive rain of five 0:21:38.040 --> 0:21:40.320 to ten inches along the path over the next twenty 0:21:40.359 --> 0:21:43.160 four hours. Karen and Nathan. Okay, Rob, Thanks, We're gonna 0:21:43.160 --> 0:21:45.320 be checking back with you throughout the morning. Ahead of 0:21:45.400 --> 0:21:48.680 the storm, thousands of flights have been canceled. Disney SeaWorld 0:21:48.720 --> 0:21:51.560 and Universal Orlando are all shutting their theme parks through 0:21:51.560 --> 0:21:54.359 at least tomorrow, and Florida Governor round the Santas is 0:21:54.400 --> 0:21:57.560 activating five thousand members of the National Guard. Another two 0:21:57.680 --> 0:22:00.239 thousand are coming in from out of state Nate Now 0:22:00.320 --> 0:22:02.879 to the turbulent markets, the dollar is trading at a 0:22:03.000 --> 0:22:05.359 record after the White House talked down the prospect of 0:22:05.440 --> 0:22:08.440