WEBVTT - Bloomberg Daybreak: October 13, 2022 - Hour 2 (Radio) 0:00:02.840 --> 0:00:06.240 Live from the Bloomberg Interactive Berger Studios is Bloomberg Day 0:00:06.320 --> 0:00:10.680 Right for Thursday, October two. Coming up this shower, Investors 0:00:10.680 --> 0:00:14.319 brace for this morning's reading on inflation. The International Energy 0:00:14.360 --> 0:00:18.000 Agency warns about global recession. US official sphere. They're planned 0:00:18.040 --> 0:00:21.320 to cap Russian oil prices made backfire, and the deadline 0:00:21.320 --> 0:00:23.799 approaches for the Bank of England to end its emergency 0:00:23.880 --> 0:00:27.200 bond buying program. New York's gunlog it's a reprieve from 0:00:27.200 --> 0:00:30.240 a federal appeals court. Plus Russia is at Ukraine's key 0:00:30.400 --> 0:00:34.560 area by Iranian made Kamikaze drone. I'm Michael war More. 0:00:35.200 --> 0:00:37.840 I'm trying stash our In sports, the Braves and Padres 0:00:37.880 --> 0:00:41.000 one of the nationally playoffs Yankees and Guardians scheduled to 0:00:41.040 --> 0:00:46.480 play game two tonight. That's all's train ahead on Bloomberg 0:00:46.560 --> 0:00:51.640 Daybreak on Bloomberg eleven, Free on New York, Bloomberg one, Washington, 0:00:51.760 --> 0:00:55.880 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.880 --> 0:01:00.000 San Francisco, Sirius x M one nineteen and around the world. 0:01:00.000 --> 0:01:03.080 Old on Bloomberg Radio dot Com and via the Bloomberg 0:01:03.120 --> 0:01:10.080 Business APT And Good Morning, I'm Kared Moscow. I'm Nathan Haygar. 0:01:10.120 --> 0:01:12.959 Bloomberg Day Break brought to you by Interactive Brokers. Interactive 0:01:12.959 --> 0:01:15.640 Brokers charges marginal rates from three point five eights of 0:01:15.720 --> 0:01:18.280 four point five eight percent rates subject to change. Learn 0:01:18.319 --> 0:01:21.120 more at ib k R, dot com, slash Compare and 0:01:21.240 --> 0:01:23.720 US dot Index. Future is on the rise this morning, 0:01:23.800 --> 0:01:25.600 six so went on Wall Street. We checked the markets 0:01:25.600 --> 0:01:28.480 every fifteen minutes throughout the trading day. On Bloomberg SMP 0:01:28.600 --> 0:01:31.080 future is up sixteen points down, futures have a hundred 0:01:31.080 --> 0:01:33.880 thirty five and NASDAG features up twenty two. The ten 0:01:33.959 --> 0:01:36.840 year treasury little change yield three point eight to nine percent, 0:01:37.200 --> 0:01:39.560 yield on the two year four point to nine percent. 0:01:39.720 --> 0:01:42.640 Nathan Karen Well, we wait for today's inflation reports. Stocks 0:01:42.680 --> 0:01:45.200 under the session at their lowest level since November twenty 0:01:45.640 --> 0:01:47.720 The S and P five hundreds declined for six straight 0:01:47.800 --> 0:01:50.600 days now. Victoria Green is chief investment officer at G 0:01:50.720 --> 0:01:53.200 Squared Private Wealth. The biggest thing an investor can do 0:01:53.240 --> 0:01:55.760 is don't panic or don't need jerk on data. We've 0:01:55.800 --> 0:01:59.040 seen wild moves off of some of these data releases 0:01:59.160 --> 0:02:01.120 or fed moves, and a lot of times it's a 0:02:01.160 --> 0:02:02.920 one or two day move and comes back to trent. 0:02:03.080 --> 0:02:05.400 So I would say, like one day, one week, does 0:02:05.440 --> 0:02:07.880 not a market make like be a little bit patient 0:02:08.000 --> 0:02:10.400 g squared Private Wealth. Victoria Green says she does not 0:02:10.480 --> 0:02:13.960 expect the Fed to pivot anytime soon. Still, Nathan, the 0:02:13.960 --> 0:02:17.160 Fed will be watching today's inflation data closely. The Consumer 0:02:17.200 --> 0:02:19.600 Price Indix for September comes out at eight thirty am 0:02:19.639 --> 0:02:22.440 All Street time, and we get a preview from Bloomberg Economics. 0:02:22.520 --> 0:02:26.800 Corresponded Michael McKee. Only minor progress on inflation is forecast, 0:02:26.880 --> 0:02:30.000 with headline CPI rising at a faster rate in September, 0:02:30.240 --> 0:02:33.919 while core inflation slows but only to a still strong level. 0:02:33.960 --> 0:02:36.600 Housing is the biggest problem. Shelter makes up about a 0:02:36.639 --> 0:02:39.440 third of the overall basket of consumer prices and an 0:02:39.440 --> 0:02:42.720 even larger share of the core overall Rents have only 0:02:42.919 --> 0:02:47.560 started to stabilize. Some categories should see pullbacks, particularly used cars. 0:02:47.760 --> 0:02:51.080 Retailers are also discounting to clear out inventory ahead of 0:02:51.080 --> 0:02:53.560 the holidays. But the ultimate message to the Fed will 0:02:53.600 --> 0:02:57.919 be keep raising interest rates. Michael McKee, Bloomberg Daybreak. Alright, Mike, thanks, 0:02:57.919 --> 0:03:00.320 speaking of interest rates, more big hikes are on the 0:03:00.320 --> 0:03:02.679 way from the FED unless there's a significant change in 0:03:02.720 --> 0:03:05.560 the data. That's according to Fed Governor Michelle Bowman. If 0:03:05.560 --> 0:03:08.960 we do not see signs that inflation is moving down, 0:03:09.760 --> 0:03:13.360 my view continues to be that sizeable increases in the 0:03:13.400 --> 0:03:16.280 target range for the Federal funds rate should remain on 0:03:16.280 --> 0:03:21.440 the table. However, if inflation starts to decline, I believe 0:03:21.480 --> 0:03:25.240 a slower pace of rate increases would be appropriate. FED 0:03:25.240 --> 0:03:28.400 Governor Michelle Bowman's comment suggests she supports another seventy five 0:03:28.440 --> 0:03:31.400 basis point move when officials meet next month. Well, I 0:03:31.520 --> 0:03:34.079 s are on the Fed, Nathan, But starting tomorrow earnings 0:03:34.120 --> 0:03:37.160 come back into play. To Bank of America reports on Monday, 0:03:37.240 --> 0:03:40.400 and CEO Brian moynahan is out with optimistic words ahead 0:03:40.400 --> 0:03:43.400 of the results. He says consumers are in good shape 0:03:43.440 --> 0:03:46.440 and his bank only expects a slight recession in the US. 0:03:46.720 --> 0:03:50.920 They have this court positive real GDP next quarter just 0:03:51.040 --> 0:03:53.680 above zero positive and three straight quarters of negative and 0:03:53.720 --> 0:03:57.280 so effectively, depending what the NVR does, you know, that's 0:03:57.280 --> 0:04:00.640 that's a slight recession, but it's shallow. And Ryan Monahan 0:04:00.720 --> 0:04:03.760 spoke at the Institute of International Finance meeting in Washington. 0:04:03.840 --> 0:04:07.040 Stay tuned for more from Moynahan on Monday when we 0:04:07.080 --> 0:04:09.800 speak live with the Bank of America CEO on Bloomberg 0:04:09.880 --> 0:04:13.640 Radio and Television. Bank of America at leastees a slight recession, Karen, 0:04:13.680 --> 0:04:17.360 the International Energy Agencies warning about a worldwide contraction. I 0:04:17.560 --> 0:04:20.240 A says OPEC decision to cut oil production threatens to 0:04:20.240 --> 0:04:23.440 push prices two levels that tipped the global economy into 0:04:23.440 --> 0:04:26.080 a downturn. In checking prices down NIMEX s crews up 0:04:26.080 --> 0:04:28.560 three tenths per cent at eighty seven dollars fifty eight 0:04:28.600 --> 0:04:32.440 cents of barrel meantime, Nathan President Biden finds himself walking 0:04:32.480 --> 0:04:35.040 a tiderope over the world's demand for oil and gas, 0:04:35.040 --> 0:04:37.480 and that says the administration considers a price camp on 0:04:37.560 --> 0:04:40.000 Russian oil. Bloomberg's Amy Morris has a look at the 0:04:40.080 --> 0:04:43.840 strategy from our newsroom in Washington. The idea is to 0:04:43.920 --> 0:04:46.680 keep enough Russian supplies on the global market to prevent 0:04:46.720 --> 0:04:49.239 a spike in oil prices, but the move by OPEC 0:04:49.279 --> 0:04:51.960 plus to slash production by two million barrels a day 0:04:52.080 --> 0:04:56.000 could undermine the plan. Sources tell Bloomberg that administration officials 0:04:56.000 --> 0:04:59.919 are worried Russia may retaliate by cutting off supplies Russia. 0:05:00.000 --> 0:05:02.640 President Putin has said he will not sell oil to 0:05:02.760 --> 0:05:06.240 any nation that participates in the price cap plan. Still, 0:05:06.320 --> 0:05:08.440 the US is going ahead with it, seen as the 0:05:08.480 --> 0:05:12.000 best choice among bad options to curb Russia's oil revenues. 0:05:12.279 --> 0:05:15.280 In Washington, I mayby Moore as Bloomberg Daybreak, Thanks Amy 0:05:15.320 --> 0:05:18.040 on Capitol Hill the House January six committees getting ready 0:05:18.080 --> 0:05:20.680 to present new evidence. Today's hearing will focus on Donald 0:05:20.680 --> 0:05:22.640 Trump's state of mind the day of the attack of 0:05:22.680 --> 0:05:25.600 the Capitol, Bloomberg said. Baxter has more. This is the 0:05:25.680 --> 0:05:28.440 last hearing before the midterms, and the committee is endeavoring 0:05:28.440 --> 0:05:31.760 to reinforce its contention that Donald Trump remains what they 0:05:31.760 --> 0:05:35.080 are saying is a clear and present danger to democracy. 0:05:35.480 --> 0:05:38.440 Congresswoman Zoe Loughran says what they discovered through their work 0:05:38.480 --> 0:05:42.679 this summer make clear Donald Trump's intentions, what he knew, 0:05:43.120 --> 0:05:46.880 what he did, what others did. She says there will 0:05:46.920 --> 0:05:49.760 be no live witnesses, but they will have testimony from 0:05:49.920 --> 0:05:53.880 new witnesses. In San Francisco, I'm at Baxter Bloomberg Daybreak. 0:05:54.320 --> 0:05:56.240 All Right, at Thanks in Europe this morning, it's all 0:05:56.279 --> 0:05:59.320 about the turmoil and financial markets. The deadline is nearing 0:05:59.320 --> 0:06:01.799 for the Bank of Land to end its bond buying program, 0:06:01.800 --> 0:06:03.240 and we go to London and get the latest of 0:06:03.279 --> 0:06:06.239 Bloomberg's un pots. Good Morning You and good morning Nathan 0:06:06.240 --> 0:06:08.919 and Karen. Investors having watching this story all week, but 0:06:09.040 --> 0:06:12.680 tomorrow afternoon, the UK's Central Bank will finally end its 0:06:12.680 --> 0:06:16.000 support for the country's bond markets. Ahead of that deadline, 0:06:16.040 --> 0:06:18.359 the government now appears to be at loggerheads with the 0:06:18.360 --> 0:06:21.840 Bank of England's. Asked about any fresh market turmoil, the 0:06:21.880 --> 0:06:24.760 government's chance that said that would be a matter for 0:06:24.800 --> 0:06:27.000 the governor in London. On you in Ports bloom Boke, 0:06:27.040 --> 0:06:29.200 day Break, You and thanks. In corporate news this morning, 0:06:29.279 --> 0:06:32.000 shares of applied Materials are down seven tenths per cent. 0:06:32.080 --> 0:06:35.160 The maker of chip manufacturing equipment is slashing its forecast 0:06:35.279 --> 0:06:38.600 for the fourth quarter, says new export regulations will hurt 0:06:38.640 --> 0:06:41.479 sales to China. And this update is run to you 0:06:41.560 --> 0:06:44.120 by b n Y Melons Pershing. Learn why the world's 0:06:44.160 --> 0:06:47.839 most sophisticated wealth management and institutional firms rely on Pershing 0:06:47.880 --> 0:06:51.640 to help them improve profitability, create efficiency, attract talent, and 0:06:51.760 --> 0:06:56.000 manage risk at pershing dot Com. Futures this morning are 0:06:56.040 --> 0:06:59.320 on the rise. SMP futures at fourteen points down. Futures 0:06:59.320 --> 0:07:02.880 have a hundred team NASDAG features up fifteen ten. Your 0:07:02.920 --> 0:07:06.000 treasury little change you'll three point nine percent they yield 0:07:06.000 --> 0:07:08.719 on the two year four point two and nine percent. 0:07:09.120 --> 0:07:11.720 Looking at the euro at point in nine seven two 0:07:11.920 --> 0:07:15.120 six against the dollar British found one point five three 0:07:15.440 --> 0:07:18.520 straight ahead, your latest local headlines plus the check of sports. Sam. 0:07:18.640 --> 0:07:24.600 This is Bloomberg. Thanks Karen. Six O seven on Wall 0:07:24.640 --> 0:07:27.120 Street sixty three degrees in Central Park. Still dealing with 0:07:27.160 --> 0:07:30.600 the accident investigation in Secaucus. Westbound three is closed at 0:07:30.600 --> 0:07:32.840 Harmon Metal Bull of our details come up in traffic. 0:07:32.920 --> 0:07:34.640 Michael Barr is here with more on what's going on 0:07:34.680 --> 0:07:36.600 in New York and around the world. Good morning, Michael, 0:07:36.640 --> 0:07:39.679 Good morning Nathan. A federal appeals judge put on hold 0:07:39.680 --> 0:07:42.400 of lower court ruling that's struck down many of New 0:07:42.480 --> 0:07:46.800 York's gun bands and public places as constitutional. The judge 0:07:46.800 --> 0:07:50.280 granted New York Attorney General Letitia James a temporary order 0:07:50.320 --> 0:07:54.280 preventing in October sixth decision by US District Judge Glenn 0:07:54.360 --> 0:07:57.960 Suttoby in Syracuse from going into effect, a three judge 0:07:58.000 --> 0:08:01.880 panel of the same Appeals Corps must still decide whether 0:08:01.960 --> 0:08:06.480 to state Sonaby's decision for the entire appeal process. Abortion 0:08:06.520 --> 0:08:09.200 providers in New York are seeing such an influx of 0:08:09.240 --> 0:08:12.640 pregnant women from other states that they are struggling financially 0:08:12.720 --> 0:08:15.840 to meet demand. Governor Kathy Hokeles has the state is 0:08:15.880 --> 0:08:19.280 giving more than thirteen million dollars to organizations that operate 0:08:19.360 --> 0:08:24.640 clinics throughout New York. They include hospital based providers, independent clinics, 0:08:25.040 --> 0:08:27.360 as well as many who are receiving state assistance for 0:08:27.400 --> 0:08:30.360 the very first time because the need is that dire. 0:08:30.760 --> 0:08:33.760 Governor Hocle says the state will protect a woman's right 0:08:33.880 --> 0:08:37.080 to a safe and legal abortion. Meanwhile, the new poll 0:08:37.160 --> 0:08:40.160 shows Governor Hocle retaining a lead over her opponent in 0:08:40.200 --> 0:08:44.520 the gubernatorial race. According to Amerist College Pole, hocal leads 0:08:44.520 --> 0:08:48.480 a Republican challenger, Congressman LEAs Elden, by ten points. It's 0:08:48.520 --> 0:08:51.080 the narrowest in the New York governor's race in about 0:08:51.120 --> 0:08:55.120 three decades. New York's Health commissioner says monkey pox is 0:08:55.160 --> 0:08:57.880 no longer the threat to the city that it initially was. 0:08:58.400 --> 0:09:01.440 Dr Ashewan Bassan, we have turned a corner that I 0:09:01.480 --> 0:09:04.040 hope indicates that we now have the upper hand on 0:09:04.080 --> 0:09:08.000 this outbreak. Meanwhile, Dr Vasan says asked for polio traces 0:09:08.040 --> 0:09:10.640 of the disease were found in wastewater samples in the 0:09:10.679 --> 0:09:13.920 city and across the state. For the fourth day in 0:09:13.920 --> 0:09:16.680 a row, residence of Key were awakened to the sound 0:09:16.720 --> 0:09:20.440 of Air AID sirens as Russian bombardment of Ukraine's critical 0:09:20.440 --> 0:09:23.520 infrastructure continues. What he's saying that a village was hit 0:09:23.600 --> 0:09:27.760 overnight by a so called kamikaze drone, probably supplied by Iran. 0:09:28.200 --> 0:09:31.480 A Connecticut jury has ordered conspiracy theorist Alex Jones to 0:09:31.520 --> 0:09:34.720 pay nine sixty five million dollars to the relatives of 0:09:34.760 --> 0:09:38.440 Sandy Hook Elementary School shooting victims and an FBI agent. 0:09:38.880 --> 0:09:41.640 They said Jones tormented their lives by promoting the lie 0:09:41.720 --> 0:09:44.400 that the rampage was a hoax. Robert Parker lost his 0:09:44.480 --> 0:09:47.800 daughter Emily in the shooting. I couldn't be more proud 0:09:48.440 --> 0:09:51.520 to stand here and with all of these people, and 0:09:52.520 --> 0:09:54.600 I've really missed my wife and daughters right now they 0:09:54.640 --> 0:09:57.200 can't be here with me. Robert Parker's daughter was one 0:09:57.240 --> 0:09:59.640 of twenty children and six adults killed in the massacre. 0:10:00.000 --> 0:10:01.880 Global News twenty four hours a day on air, rand 0:10:01.920 --> 0:10:04.880 on Bloomberg Quick Take, powered by more than journalists and 0:10:04.880 --> 0:10:07.360 analysts more than a hundred twenty countries. Michael Barr, this 0:10:07.360 --> 0:10:14.160 is Bloomberg, Nathan, Thank you, Michael. Almost six ten on 0:10:14.160 --> 0:10:16.280 Wall Street. Time for the Bloomberg Sports Update with John 0:10:16.280 --> 0:10:18.880 stash Our. All right, Nathan, A little unusual schedule in 0:10:18.920 --> 0:10:21.520 the American League Division Series. Yankees and Guardians with a 0:10:21.640 --> 0:10:24.040 night off in between the two games of the stadium 0:10:24.080 --> 0:10:27.240 schedule to resume their series tonight, rains in the forecast. 0:10:27.360 --> 0:10:30.240 They can't play tonight. They'll play tomorrow with Nestor Cortez 0:10:30.280 --> 0:10:33.640 going against Cleveland Shane Baber. Both nlds or tied to one. 0:10:33.679 --> 0:10:36.640 Atlanta shut out the Phillies three nothing behind Kyle Right 0:10:36.720 --> 0:10:39.080 twenty one game, winning the regular season. The Padres beat 0:10:39.120 --> 0:10:41.520 the Dodgers by the same five to three score that 0:10:41.640 --> 0:10:43.400 l A won. The Openers bought, Nix and Nets getting 0:10:43.400 --> 0:10:45.960 ready to tip off their seasons next week. Nicks lost 0:10:46.000 --> 0:10:49.000 at Indiana, the Nets one in Milwaukee. Ben Simmons acquired 0:10:49.080 --> 0:10:51.160 last season, but he never played. He is playing now 0:10:51.559 --> 0:10:53.720 and while Simmons doesn't score much last night, he had 0:10:53.720 --> 0:10:56.720 tennisis eight emails. Can the Giants keep it going? Off 0:10:56.920 --> 0:10:59.480 to us surprising four and one start? They host Baltimore 0:10:59.600 --> 0:11:02.240 Sunday as new coach Brian day Ball continues to be 0:11:02.280 --> 0:11:05.360 impressed by his quarterback Daniel Jones. And he comes in. 0:11:05.520 --> 0:11:07.920 He does a great job with the players around him 0:11:07.960 --> 0:11:11.280 of of leading game, of of helping them with the offense. 0:11:11.520 --> 0:11:12.880 And you know, each week I think you get a 0:11:12.880 --> 0:11:16.680 little bit more comfortable again for five weeks into really 0:11:16.760 --> 0:11:19.280 live competition. Um so, I think you learn a lot 0:11:19.320 --> 0:11:22.800 about players, not just Daniel, but everybody. And he's done. 0:11:22.840 --> 0:11:24.400 He's done a good job for us. Jones led the 0:11:24.400 --> 0:11:26.960 Giants to that upset win in London over Green Bay, 0:11:26.960 --> 0:11:29.760 and now the Jets visit Green Bay this Sunday. Aaron 0:11:29.840 --> 0:11:32.679 Rodgers heard his thumb in that game with the Giants. 0:11:32.720 --> 0:11:34.679 They hit him on that last play. He didn't practice. 0:11:34.720 --> 0:11:37.920 He is gonna play Sunday as rookie Skyler Thompson faced 0:11:37.920 --> 0:11:39.520 the Jets last week to a time to below. The 0:11:39.520 --> 0:11:41.640 remains out in Miami with the kid cushion. The Dolphins 0:11:41.679 --> 0:11:44.679 are gonna start Thompson against Minnesota Big Games Sunday night, 0:11:44.760 --> 0:11:48.000 Dallas at Philadelphia. The Cowboys expected to stick with Cooper Rush. 0:11:48.080 --> 0:11:50.760 He's four no Dak Prescott's does that with a thumbing dream. 0:11:51.040 --> 0:11:53.880 Johns dashwar of Bloomberg Sports, Nathan, thank you, john SMP 0:11:54.000 --> 0:11:56.640 futures are higher by fourteen point. Stuff features up a 0:11:56.679 --> 0:11:59.480 hundred sixteen nants that features up nineteen points ahead of 0:11:59.520 --> 0:12:03.559 cp HY data. Bloomberg's Michael McKee previews the numbers. Next. 0:12:03.640 --> 0:12:08.480 This is Bloomberg Bloomberg eleven three oh weather rainy, breezy 0:12:08.520 --> 0:12:10.200 today with a high near seventy degrees. It will be 0:12:10.200 --> 0:12:13.679 mostly sunny up for sixties tomorrow. Same deal Saturday. Clouds 0:12:13.720 --> 0:12:16.880 will increase by Sunday with high still in the upper sixties. 0:12:16.960 --> 0:12:23.400 Right now sixty three in Central Park Markets. Headlines and 0:12:23.559 --> 0:12:26.559 breaking news twenty four hours a day at Bloomberg dot 0:12:26.600 --> 0:12:30.000 com and Bloomberg Business at and at Bloomberg Quicktape. This 0:12:30.440 --> 0:12:38.920 is a Bloomberg Business slash and I'm Karen Moscow. This 0:12:39.040 --> 0:12:42.560 updates brought to you by Interactive Brokers. Interactive Brokers clients 0:12:42.559 --> 0:12:44.240 are an interest of up to two point five eight 0:12:44.240 --> 0:12:47.160 percent on the idle cash and their brokerage accounts. That's 0:12:47.160 --> 0:12:50.360 just one of the many reasons clients use interactive brokers 0:12:50.360 --> 0:12:54.040 to trade stocks, options, futures, currencies, bonds, funds, crypto and more. 0:12:54.440 --> 0:12:57.960 Visit ibker dot com slash interest rates to learn more. 0:12:58.400 --> 0:13:00.880 US stock index futures on the is this morning ahead 0:13:00.880 --> 0:13:03.480 of key US inflation data that could determine how much 0:13:03.559 --> 0:13:07.000 further the federal reserves policying tightening cycle will run, and 0:13:07.040 --> 0:13:09.600 we check the markets every fifteen minutes throughout the trading day. 0:13:09.640 --> 0:13:12.160 On bloomberg S and P future is up about fifteen 0:13:12.200 --> 0:13:15.400 points down. Futures have a hundred thirteen NASTAG futures up 0:13:15.440 --> 0:13:18.440 eighteen the decks in Germany's up six tenths of up percent. 0:13:18.559 --> 0:13:21.120 Ten year treasury down one thirty second heal three point 0:13:21.360 --> 0:13:23.880 eight nine percent. They yield on the two year four 0:13:23.920 --> 0:13:26.960 point to nine percent. Ninemex screwed oil is up tenth 0:13:26.960 --> 0:13:29.120 of upper cent or ten cents at eighty seven dollars 0:13:29.120 --> 0:13:31.319 thirty eight cents of barrel call makes gold up a 0:13:31.360 --> 0:13:34.560 quarter percent or four dollars fifty cents at sixteen eighty two. Announced. 0:13:34.920 --> 0:13:37.320 The euro point nine seven three one against the dollar. 0:13:37.400 --> 0:13:39.719 British found one point one five nine, and they had 0:13:39.720 --> 0:13:43.199 one forty six point eight one and Bitcoin down one 0:13:43.240 --> 0:13:46.199 percent at eighteen thousand, nine hundred dollars. And that's a 0:13:46.200 --> 0:13:48.920 Bloomberg business flash. Now here's Michael Barr with more on 0:13:49.000 --> 0:13:51.640 what's going on around the world. Michael Karen, thank you 0:13:51.760 --> 0:13:55.040 very much. The House Select Committee investigating the January sixth 0:13:55.080 --> 0:13:58.559 attack on the Capitol will hold its final hearing today. 0:13:59.000 --> 0:14:03.760 Members are promised substantial new footage and significant witness testimony. 0:14:04.200 --> 0:14:07.720 Since the last hearing, multiple members of Trump's cabinet have 0:14:07.840 --> 0:14:12.719 testified behind closed doors. Millions of Social Security recipients will 0:14:12.760 --> 0:14:15.840 soon learned just how high a boost they'll get in 0:14:15.880 --> 0:14:19.440 their benefits next year. The increase to be announced today 0:14:19.560 --> 0:14:22.400 is expected to be the highest and forty years, maybe 0:14:22.520 --> 0:14:25.760 up to nine. In the NHL, the Bruins beat the 0:14:25.800 --> 0:14:30.560 Capitols five two. In Baseball's n LDS Playoffs, the Braves 0:14:30.600 --> 0:14:33.080 beat the Phillies three zip to even their series at 0:14:33.080 --> 0:14:35.960 a game of piece. The Padres beat the Dodgers five 0:14:36.080 --> 0:14:39.160 three to tie their series at one. One. Global News 0:14:39.240 --> 0:14:42.440 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:42.760 --> 0:14:45.760 powered by more than twenty seven hundred journalists and analysts 0:14:45.800 --> 0:14:48.720 more than a hundred twenty countries. Michael Barr And this 0:14:48.760 --> 0:14:51.080 is Bloomberg, Nathan. Thank you, Michael. We're coming up to 0:14:51.120 --> 0:14:53.880 six twenty on Wall Street Life from the Bloomberg Interactive 0:14:53.880 --> 0:14:56.680 Brokers Studios. This is Bloomberg Daybreak. It's brought to you 0:14:56.720 --> 0:15:00.080 by s e I imagine your asset management firms operation 0:15:00.200 --> 0:15:03.720 infrastructure as a competitive advantage. Let se I show you 0:15:03.800 --> 0:15:07.680 how at se I c dot com slash I m s. 0:15:07.720 --> 0:15:10.080 So we're just about two hours, ten minutes away from 0:15:10.120 --> 0:15:14.200 the latest reading on inflation. September consumer prices do out 0:15:14.240 --> 0:15:16.440 at eight thirty Wall Street time. Ahead of it, We're 0:15:16.520 --> 0:15:20.680 joined this morning by Bloomberg International Economics and Policy correspondent 0:15:21.080 --> 0:15:24.640 Michael McKee. So, Mike, the consensus from the economists we've 0:15:24.680 --> 0:15:28.760 surveyed calls for a dip in the headline, but a 0:15:28.840 --> 0:15:31.560 slight increase in the core. Where's that going to leave 0:15:31.560 --> 0:15:36.160 the FED? Leaves the Fed where they are today. We've 0:15:36.160 --> 0:15:39.560 talked about how the all CPI is all important, but 0:15:39.640 --> 0:15:41.520 it's not really in the sense that the Fed is 0:15:41.760 --> 0:15:44.120 pretty much decided they're going to do seventy five basis 0:15:44.120 --> 0:15:46.720 points because we see the tight labor market, they see 0:15:46.840 --> 0:15:49.680 energy prices with the possibility of going up again after 0:15:49.760 --> 0:15:53.440 OPEC plus, and so they've pretty much told us that's 0:15:53.480 --> 0:15:55.560 what they want to do. The real question is what 0:15:55.600 --> 0:15:58.440 do they do after that at the December meeting, And 0:15:58.520 --> 0:16:02.800 that will depend on the trajectory of inflation, particularly core inflation, 0:16:03.200 --> 0:16:06.480 which according to the economist we've surveying, is likely to 0:16:06.480 --> 0:16:11.000 go up this month UH, at least a slightly slower pace, 0:16:11.160 --> 0:16:13.360 but way above where the FED wants to be. And 0:16:13.400 --> 0:16:15.680 of course that is the metric that the FED is 0:16:15.880 --> 0:16:19.120 focused like a laser on. Where what Let's get a 0:16:19.160 --> 0:16:22.120 little bit deeper into the numbers that we're expecting though, 0:16:22.160 --> 0:16:25.960 where are we expecting to see potential signs that we 0:16:26.040 --> 0:16:30.080 could have hit peak inflation? Well, energy is going to 0:16:30.120 --> 0:16:34.480 be a big drag on the index once again because 0:16:34.560 --> 0:16:38.000 gasoline prices did go down in September. But the concern 0:16:38.160 --> 0:16:40.800 is what about the ancillary things that you profinde by 0:16:40.880 --> 0:16:44.200 jet fuel and heating oil. UH? Did those go up 0:16:44.320 --> 0:16:48.040 or down? And what about natural gas? Uh? The problem 0:16:48.080 --> 0:16:50.520 is there are just as many things that could go down. 0:16:50.640 --> 0:16:55.120 Air pairs because the summer travel season is over and 0:16:55.240 --> 0:16:59.560 use cars. But beyond that, a lot of service services 0:16:59.600 --> 0:17:03.000 are going up in price. Uh. And that's what worries 0:17:03.080 --> 0:17:05.440 defend at this point is that there was supposed to 0:17:05.480 --> 0:17:09.240 be a handoff two services and services would slow down, 0:17:09.280 --> 0:17:11.560 but they're not at the moment. Well, how does that 0:17:11.600 --> 0:17:15.200 plan to inflation expectations? We got the Fed minutes yesterday 0:17:15.240 --> 0:17:17.480 and that's seemed to be a pretty big concern for 0:17:17.560 --> 0:17:22.159 central anchors. It's been their concern overall. It's underlying belief 0:17:22.200 --> 0:17:26.560 that inflation expectations shape future inflation. If you think that 0:17:26.600 --> 0:17:28.399 inflation is going to keep going up, you're going to 0:17:28.720 --> 0:17:31.840 ask your boss for a bigger raise. But so far, 0:17:32.119 --> 0:17:36.639 surveys show inflation expectations are relatively contained. We're waiting until 0:17:36.680 --> 0:17:39.439 Friday to get the latest University of Michigan survey, but 0:17:39.520 --> 0:17:42.160 the New York Fed survey came out earlier this week, 0:17:42.200 --> 0:17:46.400 and so that inflation over a one year period, expectations 0:17:46.400 --> 0:17:49.639 had dropped. Over a three year period, they've gone up 0:17:49.720 --> 0:17:56.080 attempts so not very much. And market purpising tips at 0:17:56.080 --> 0:17:58.919 this point, yields are still restrained. There's not a feeling that, 0:17:59.600 --> 0:18:01.280 at least how Wall Street, but the Fed isn't going 0:18:01.320 --> 0:18:03.679 to get this under control. The only question is how 0:18:03.960 --> 0:18:07.200 is when? Of course, when it comes to consumer prices, 0:18:07.240 --> 0:18:10.840 one of the biggest pieces in the basket is housing. 0:18:11.320 --> 0:18:13.800 When are we going to start to see the effect 0:18:13.800 --> 0:18:16.520 of higher interest rates on housing prices that have been 0:18:16.560 --> 0:18:20.879 so high for quite some time? Unfortunately, that's going to 0:18:20.920 --> 0:18:25.199 take a while. The housing component of the CPI has 0:18:25.200 --> 0:18:28.000 been going up about seven tenths per cent per month 0:18:28.119 --> 0:18:30.359 for a while, and let's think if that's going to 0:18:30.359 --> 0:18:35.080 continue into next year because our prices turned over so slowly. Uh, 0:18:35.119 --> 0:18:38.920 they're only now just beginning to fall with the impact 0:18:38.960 --> 0:18:41.560 of higher mortgage rates. And it will take a while 0:18:41.560 --> 0:18:44.040 because you don't buy a house every day for that 0:18:44.160 --> 0:18:46.760 to get into the CPI. Now, the FAT knows that. 0:18:47.240 --> 0:18:49.960 And while it may lead to slightly higher CPI numbers 0:18:49.960 --> 0:18:52.800 that worry the public or worry Wall Street, it won't 0:18:52.800 --> 0:18:54.560 worry the FED as much as long as they see 0:18:54.600 --> 0:18:58.160 the trajectory is down. Only about thirty seconds left here, Mike. 0:18:58.200 --> 0:19:01.120 But are we expecting that the higher and expected producer 0:19:01.240 --> 0:19:03.560 prices that we saw yesterday to have a read through 0:19:03.600 --> 0:19:07.480 into this morning's print. They don't have a direct read 0:19:07.520 --> 0:19:10.600 through their middlemen in the way that have their own markups, etcetera. 0:19:11.400 --> 0:19:14.679 But it does tell you the trajectory of inflation hasn't 0:19:14.760 --> 0:19:17.600 changed all that much yet. And yesterday I spoke with 0:19:17.640 --> 0:19:20.240 a number of economists who said, basically, all it's telling 0:19:20.320 --> 0:19:23.880 us is this is going to continue. Yeah, that's been 0:19:23.920 --> 0:19:27.719 the drumbeat from Fed officials. Thanks Mike, as always, Bloomberg 0:19:27.880 --> 0:19:31.840 International Economics and Policy correspondent Michael McKee, who will be 0:19:31.880 --> 0:19:34.920 back with us throughout the morning as we await those 0:19:34.920 --> 0:19:37.159 CPI numbers. He'll be breaking them down for us at 0:19:37.200 --> 0:19:39.560 eight thirty am Wall Street time. So check back with 0:19:39.560 --> 0:19:43.560 Bloomberg Radio and Television for complete coverage of the inflation 0:19:43.720 --> 0:19:47.159 story and its effect on markets. Futures right now are 0:19:47.200 --> 0:19:49.960 moving higher ahead of cp I s, and P futures 0:19:49.960 --> 0:19:52.600 are up sixteen point, Staff futures up a DRED twenty five, 0:19:52.600 --> 0:19:55.639 and NASTAC futures are higher by twenty three points. Little 0:19:55.720 --> 0:19:58.359 change to the tenure Treasury the yield their three point 0:19:58.440 --> 0:20:01.960 eight nine per cent. And you're listening to Bloomberg Daybreak, 0:20:06.960 --> 0:20:08.840 Bloomberg eleven three oh weather today is gonna be the 0:20:08.920 --> 0:20:12.520 rainy day. We'll get up to seventy degrees. Sunshine returns tomorrow, 0:20:12.560 --> 0:20:15.919 u last into the weekend, with highs each day in 0:20:15.960 --> 0:20:19.000 the upper sixties. Right now sixty three degrees in Central Park. 0:20:22.240 --> 0:20:26.800 Broadcasting live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.920 --> 0:20:30.280 Bloomberg E Living free to Washington, d C, Bloomberg nine 0:20:30.960 --> 0:20:34.200 to Boston, Bloomberg one O six one to San Francisco, 0:20:34.280 --> 0:20:37.760 Bloomberg nine sixty to the Country, Sirius XM Chado one 0:20:37.800 --> 0:20:41.520 nine and around the globe the Bloomberg Business and Bloomberg 0:20:41.600 --> 0:20:51.199 Radio dot com. This is Bloomberg Daybreak six thirty on 0:20:51.240 --> 0:20:54.560 Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow. 0:20:54.720 --> 0:20:56.840 We are just about three hours away from the open 0:20:56.840 --> 0:20:58.840 of US trading. Time for the five things that you 0:20:58.920 --> 0:21:01.040 need to notice start your a Brought to you by 0:21:01.119 --> 0:21:04.280 Interactive Brokers ib k R. Event Trader offers a new 0:21:04.320 --> 0:21:07.120 way to trade futures. Use it end contracts to trade 0:21:07.119 --> 0:21:10.640 your opinion on yes or no questions and KEYCME futures markets. 0:21:10.920 --> 0:21:14.240 Learn more at event trader dot Interactive Brokers dot com. 0:21:14.920 --> 0:21:17.960 First US futures are higher ahead of today's inflation report. 0:21:18.040 --> 0:21:20.600 Stocks entered the session at their lowest levels in November 0:21:20.640 --> 0:21:24.560 of Economist Hugh Johnson tells US it's unclear if we're 0:21:24.600 --> 0:21:27.359 nearing a bottom. If we get into a recession in 0:21:27.400 --> 0:21:29.680 the first and second quarter, which I think we're gonna do, 0:21:29.920 --> 0:21:32.239 that's gonna be set up the time at which we're 0:21:32.240 --> 0:21:34.600 gonna start to get better news or news that the 0:21:34.720 --> 0:21:36.800 recession is going to end and the recovery is going 0:21:36.880 --> 0:21:38.879 to begin, maybe news that the Federal Reserve is going 0:21:38.920 --> 0:21:40.920