WEBVTT - Bloomberg Daybreak: October 4, 2022 - Hour 1 (Radio) 0:00:02.600 --> 0:00:05.800 My from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:05.880 --> 0:00:09.200 day Break for a Tuesday, October four two. Coming up 0:00:09.240 --> 0:00:12.879 this hour, the Global Equity Ramley continues for a second day. 0:00:12.920 --> 0:00:15.840 We are in Europe and Asia with the latest. Investors 0:00:15.840 --> 0:00:19.360 are wagering central banks may slow the pace of monetary tightening, 0:00:19.640 --> 0:00:23.079 and the Biden administration plans new restrictions on China's access 0:00:23.160 --> 0:00:26.560 to U S semiconductor technology. New York City is relocating 0:00:26.560 --> 0:00:30.680 a humanitarian relief center intended for asylum seekers and queens. Plus, 0:00:30.720 --> 0:00:34.360 North Korea launches a missile test over Japan. I'm Michael 0:00:34.400 --> 0:00:37.760 bar More Ahead, I'm John Stashower and sports A Yankee 0:00:37.840 --> 0:00:40.000 flirted with a no hitter to win at Texas one. 0:00:40.040 --> 0:00:44.760 That I Football, the forty nine beat the Rams. That's 0:00:44.760 --> 0:00:48.720 all training ahead on Bloomberg Daybreak on Bloomberg eleven three 0:00:48.720 --> 0:00:53.159 on New York, Bloomberg one, Washington, d C, Bloomberg one 0:00:53.200 --> 0:00:57.680 oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 0:00:57.840 --> 0:01:00.360 x M one nineteen and around the world Old on 0:01:00.400 --> 0:01:07.520 Bloomberg Radio dot Com and via The Bloomberg Business. And 0:01:07.600 --> 0:01:11.000 Good Morning. I'm Karin Moscow. I'm Nathan Hager. Bloomberg Daybreak 0:01:11.040 --> 0:01:13.360 is brought to you by se I. Imagine your asset 0:01:13.400 --> 0:01:17.360 management firms. Operational infrastructure is a competitive advantage. Let s 0:01:17.360 --> 0:01:19.240 e I show you how at s e I C 0:01:19.480 --> 0:01:22.400 dot Com slash I m S and US Future is 0:01:22.440 --> 0:01:24.679 on the rise this morning five o one on Wall Street. 0:01:24.720 --> 0:01:27.320 We checked the markets every fifteen minutes throughout the trading day. 0:01:27.440 --> 0:01:30.240 On Bloomberg, SMP Future is a fifty six points to 0:01:30.280 --> 0:01:33.400 down futures up three hundred seventy one and NASDAG futures 0:01:33.440 --> 0:01:36.319 up two hundred twelve. And attend your treasury of fourteen 0:01:36.400 --> 0:01:39.440 thirty seconds, you have three point five eight percent. Nathan 0:01:39.560 --> 0:01:41.720 here in. This morning's gain in the futures follows the 0:01:41.720 --> 0:01:44.480 best day for US stocks in two months. The SMP 0:01:44.600 --> 0:01:47.880 five D index closed up two point six percent. Week 0:01:47.960 --> 0:01:50.960 manufacturing data helps spur the rally. Some see it as 0:01:50.960 --> 0:01:53.680 a signed the Fed could soften its approach to rate hikes. 0:01:53.880 --> 0:01:58.320 Ab Dish Ponde's chief investment officer at Center Stone, the fundamentals, 0:01:58.360 --> 0:02:01.240 as far as the ound work for a new bolt 0:02:01.240 --> 0:02:04.640 market are there, you just don't have evaluations are quite 0:02:04.640 --> 0:02:06.639 there yet, and he certainly don't want the catalyst yet. 0:02:06.960 --> 0:02:09.000 But I don't see I don't see, you know, a 0:02:09.080 --> 0:02:12.120 huge collapse or a calamity or anything like that. Center 0:02:12.160 --> 0:02:15.679 Stones Abonde thinks core inflation is already peaked, hitting a 0:02:15.760 --> 0:02:19.440 high point in February. Despite some optimism that the Fed 0:02:19.480 --> 0:02:22.520 may turn in Devish Nathan, central bank officials continue to 0:02:22.520 --> 0:02:24.839 bang the drum for more rate hikes. New York Fed 0:02:24.880 --> 0:02:28.079 President John Williams says tightening still has a significant way 0:02:28.120 --> 0:02:30.840 to go. He's one of thigh FED officials speaking at 0:02:30.840 --> 0:02:34.240 events today here at any research president and you're Denny 0:02:34.320 --> 0:02:36.800 says the Fed is should hike one more time and 0:02:36.840 --> 0:02:42.280 then end it's tightening cycle. I'm totally stumped, mystified surprise 0:02:43.040 --> 0:02:47.800 that Fed officials don't seen too acknowledge that just focusing 0:02:47.800 --> 0:02:50.040 on the FED funds rate as part of the monetary 0:02:50.080 --> 0:02:52.959 tightening cycle is a mistake when you also have q 0:02:53.160 --> 0:02:56.519 T two and you have a soaring dollar. These are 0:02:57.200 --> 0:03:01.080 very restrictive monetary developments. Here, it didn't Research president here 0:03:01.080 --> 0:03:03.960 here Danny says the Fed's final rate hikes should be 0:03:04.080 --> 0:03:07.200 next month. Well, stocks are rolling across the globe this morning. 0:03:07.280 --> 0:03:10.440 Karen in Asia overnight, equities posted their biggest daily advanced 0:03:10.440 --> 0:03:13.600 since March. Let's get the recap from Bloomberg's Juliette Sally 0:03:13.680 --> 0:03:16.160 in Singapore. Good morning, Juliet, Good morning Nathan and Karen. 0:03:16.200 --> 0:03:19.160 Australia's benchmark jumped as much as three point six percent, 0:03:19.280 --> 0:03:21.800 the most in more than two years, after the country's 0:03:21.800 --> 0:03:24.639 central Bank delivered a smaller than expected interest rate hike, 0:03:24.919 --> 0:03:27.120 while three year bond yields slumped the most since the 0:03:27.200 --> 0:03:30.079 rb A cut rates heading into the global financial crisis 0:03:30.120 --> 0:03:32.880 in two thousand and eight. Japanese stock surge, with the 0:03:32.919 --> 0:03:36.480 benchmark topics rising around three percent. Liquidity in the region 0:03:36.560 --> 0:03:39.680 was relatively thin, with China and Hong Kong markets closed 0:03:39.760 --> 0:03:44.400 for a holiday. In Singapore. Juliette Sally Bloomberg Daybreak A right, Juliet, 0:03:44.440 --> 0:03:46.560 thank you. We are also seeing a rally in Europe 0:03:46.560 --> 0:03:48.320 this morning, and we go to London and get the 0:03:48.360 --> 0:03:51.280 latest live from Bloomberg's U and Parts. Good morning, U 0:03:51.440 --> 0:03:54.480 and good morning Kanathan. European stocks in the green for 0:03:54.680 --> 0:03:57.440 a third day to day the benchmark stocks under touching 0:03:57.520 --> 0:04:01.600 its biggest gain since June. Travel all technology and retail 0:04:01.680 --> 0:04:04.640 companies posting some of the biggest jumps today. A quick 0:04:04.640 --> 0:04:07.200 look at the GRR function on the Bloomberg shows that 0:04:07.280 --> 0:04:10.440 all twenty sectors are lovely shade of green today, and 0:04:10.520 --> 0:04:13.280 Credit Swiss also gained this morning, a day after those 0:04:13.280 --> 0:04:16.760 wild durations in the troubled lenders share price in London. 0:04:16.800 --> 0:04:19.080 I'm your in parts bog Daybreak, All right, you in thanks. 0:04:19.120 --> 0:04:20.719 Let's stay in the UK now where it is the 0:04:20.800 --> 0:04:24.240 third day of the Conservative Party's conference. Questions are swirling 0:04:24.240 --> 0:04:26.840 over whether Prime Minister Liz Trust can rebound from the 0:04:26.839 --> 0:04:30.520 political crisis created by last week's budget announcement. Let's go 0:04:30.600 --> 0:04:32.679 to Birmingham, England to get the latest from the conference 0:04:32.720 --> 0:04:35.800 with Bloomberg day Break. You're a banker, Caroline Hepgurg, Good morning, Caroline, 0:04:36.000 --> 0:04:39.119 Good morning, Nathan Karen. Some of Liz Trust's top team 0:04:39.160 --> 0:04:41.719 have been telling Bloomberg that her project is dead in 0:04:41.720 --> 0:04:45.000 the water already. A humiliating u turn on the top 0:04:45.120 --> 0:04:48.039 rate of tax from the Chancellor Quasi Quatte has led 0:04:48.080 --> 0:04:51.040 her own party to question her leadership, which puts her 0:04:51.080 --> 0:04:54.680 agenda in jeopardy. The Chancellor has promised to bring forwards 0:04:54.720 --> 0:04:58.839 details of his fiscal plan, and the independent watchdogs assessment 0:04:58.880 --> 0:05:02.320 so that it comes sly. But one former cabinet minister 0:05:02.320 --> 0:05:04.600 who spoke to Bluebog predicted the Prime Minister would be 0:05:04.640 --> 0:05:07.359 gone within a year. Now. The question is how the 0:05:07.440 --> 0:05:10.280 government can afford the tax cuts that it has promised, 0:05:10.440 --> 0:05:13.440 and will the poorest in society see their wealthfare payments 0:05:13.440 --> 0:05:16.840 sacrifice in order to balance the books. In Birmingham, I'm 0:05:16.839 --> 0:05:20.000 Carolan hed carefferably big daybreak, All right, Caroline, thank you. 0:05:20.040 --> 0:05:22.680 Back here in the US, US China relations are back 0:05:22.720 --> 0:05:25.440 in focus. Bloomberg News has learned the White House plans 0:05:25.440 --> 0:05:28.200 to announce the new restrictions on Beijing's access to U 0:05:28.240 --> 0:05:32.320 S semiconductor technology. Details now from Bloomberg's Amy Morris in 0:05:32.320 --> 0:05:35.920 our news room in Washington. Members of Congress have been 0:05:35.960 --> 0:05:39.800 pushing the White House to tighten controls around semiconductor equipment 0:05:39.800 --> 0:05:43.200 of China. Now, sources tell Bloomberg News the Commerce Department 0:05:43.200 --> 0:05:46.360 will roll out a package of rules this week, including 0:05:46.400 --> 0:05:50.600 formalizing restrictions on technology to produce chips that are designated 0:05:50.640 --> 0:05:54.239 as fourteen nanometer or better. It will prohibit the sale 0:05:54.240 --> 0:05:57.119 of tools for logic and memory chip production in China 0:05:57.440 --> 0:06:00.479 and restrict access to chips used in SuperComp puting and 0:06:00.640 --> 0:06:05.360 artificial intelligence. In Washington, I maybe Morris Bloomberg Daybreak, Amy thanks. 0:06:05.480 --> 0:06:08.120 As the war in Ukraine rages on, Elon Musk is 0:06:08.160 --> 0:06:11.479 weighing in. Recent Twitter posts have the Testa CEO drawing 0:06:11.520 --> 0:06:15.839 the wrath of Ukrainians, including President Vladimir's Lensky. Bloomberg's Charlie 0:06:15.880 --> 0:06:20.679 Pellet explains those post surge Ukraine to seek a negotiated 0:06:20.760 --> 0:06:24.440 solution to the invasion by Russia and to seed Crimea 0:06:24.640 --> 0:06:28.280 for good Must also launched a Twitter poll asking citizens 0:06:28.279 --> 0:06:32.679 of occupied areas of eastern Ukraine plus Crimea to decide 0:06:32.680 --> 0:06:36.080 if they want to live in Russia or Ukraine. The 0:06:36.160 --> 0:06:40.320 survey comes as Ukraine, Europe, and the US denounced President 0:06:40.400 --> 0:06:44.600 Vladimir Putin's move to annex four regions and declare them 0:06:44.760 --> 0:06:50.280 Russian territory. In New York, Charlie Pellet Bloomberg Daybreak, All right, Charlie, 0:06:50.320 --> 0:06:53.440 thank you. As for Elon Musk's company, Tesla plunge the 0:06:53.440 --> 0:06:57.120 most in four months yesterday after third quarter deliveries missed estimates, 0:06:57.120 --> 0:06:59.360 and it looks like investor canthy Wood took that as 0:06:59.360 --> 0:07:02.920 a buying opera. Tunity Funds backed by Woods. Arc Investment 0:07:02.960 --> 0:07:05.800 Management bought more than one hundred two thousand shares of 0:07:05.839 --> 0:07:09.279 Tesla yesterday and marked the firm's first purchase of Tesla 0:07:09.400 --> 0:07:12.239 since mid June. And we're watching Tesla this morning, shares 0:07:12.280 --> 0:07:15.640 around more than three in early trading. And are straight 0:07:15.640 --> 0:07:18.400 ahead your latest local headlines plus a check of sports. 0:07:18.400 --> 0:07:24.600 This is Bloomberg. It's carried its five oh seven on 0:07:24.640 --> 0:07:27.520 Wall Street, rain forty five degrees in Central Park. Got 0:07:27.600 --> 0:07:30.720 a crash northbound West Side Highway to hundred fifty Details 0:07:30.800 --> 0:07:32.960 coming up in traffic. First Michael Barr with what else 0:07:33.040 --> 0:07:34.640 is going on in New York and around the world. 0:07:34.680 --> 0:07:37.520 Morning Michael, Good Morning Nathan. New York City is relocating 0:07:37.560 --> 0:07:41.480 a humanitarian relief center intended for asylum seekers bust stuff 0:07:41.480 --> 0:07:45.200 from Texas and southern border states. The tenn City and 0:07:45.360 --> 0:07:48.760 Orchard Beach has become a magnet for anti immigration protests 0:07:49.160 --> 0:07:51.640 and for people who are concerned about the migrants. The 0:07:51.640 --> 0:07:55.000 city plans the house at Fat Facility. New York Mayor 0:07:55.160 --> 0:07:57.760 Eric Adams says the city is exploring solutions for the 0:07:57.760 --> 0:08:00.920 incoming asylum seekers. We are not want to be afraid 0:08:01.080 --> 0:08:06.000 to try different things to solve these unprecedented um problems 0:08:06.040 --> 0:08:08.800 that we're facing in the city. Mayor Adams says the 0:08:08.800 --> 0:08:12.000 migrants will be sent to Randall's Island after concerns about 0:08:12.000 --> 0:08:16.800 flooding issues and Orchard Beach. At least sixteen thousand asylum 0:08:16.840 --> 0:08:19.160 seekers so far for the last couple of months have 0:08:19.200 --> 0:08:23.080 been busted up, primarily from Texas. North Korea has fired 0:08:23.120 --> 0:08:25.440 a ballistic missile over Japan for the first time in 0:08:25.520 --> 0:08:30.600 five years, forcing Japan to issue evacuation notices and suspend 0:08:30.720 --> 0:08:33.839 trains during the flight of the nuclear capable weapon that 0:08:33.880 --> 0:08:36.880 could reach the U. S. Territory of Guam and beyond. 0:08:37.440 --> 0:08:41.120 The US said it strongly condemns North Korea's dangerous and 0:08:41.240 --> 0:08:45.079 reckless decision. President Biden and First Lady Jill Biden tour 0:08:45.240 --> 0:08:50.079 the Puerto Rico ravaged area by Hurricane Fiona. The President 0:08:50.200 --> 0:08:53.720 offered reassurance the federal government will help the U. S. 0:08:53.800 --> 0:08:57.800 Territory rebuild. We're gonna make sure you get every single 0:08:57.840 --> 0:09:01.120 dollar promise. I'm to term it help Puerto Rico bill 0:09:01.280 --> 0:09:04.520 faster than in the past and stronger and better prepared 0:09:04.559 --> 0:09:08.400 for the future. Tomorrow, President Biden plans to visit Florida, 0:09:08.480 --> 0:09:11.679 hit by Hurricane Ian. Florida Governor RHND De Santists pushed 0:09:11.679 --> 0:09:15.199 back when asked about evacuation measures in Lee County ahead 0:09:15.280 --> 0:09:18.560 of Ian. County officials have come unto question for ordering 0:09:18.600 --> 0:09:22.400 evacuations too late after Ian storm track made a late 0:09:22.480 --> 0:09:27.120 turn south for a more direct hit. Stop stop stop. Okay, 0:09:27.360 --> 0:09:29.640 it's been this has been dealt with. The Lee County 0:09:29.679 --> 0:09:32.920 has explained what they did. They went through that. Governor 0:09:32.960 --> 0:09:35.480 De Santists later said the state will, of course look 0:09:35.520 --> 0:09:38.320 over the evacuations. More than one hundred people have been 0:09:38.400 --> 0:09:41.280 killed from Ian. A half a million residents remained without 0:09:41.320 --> 0:09:45.679 power in Florida. Former President Donald Trump suited CNN for defamation, 0:09:45.720 --> 0:09:49.080 accusing the network of smearing him to undermine a potential 0:09:49.160 --> 0:09:53.440 run for re election. In Global News twenty four hours 0:09:53.440 --> 0:09:56.560 a day on air and on Bloomberg Quittank, powered by 0:09:56.600 --> 0:09:59.080 more than twenty seven hundred journalists and analysts more than 0:09:59.080 --> 0:10:02.160 a hundred twenty count Michael Barr, this is Bloomberg, NA. 0:10:02.480 --> 0:10:09.720 Thank you. Michael's come up to find ten on Wall Streets. 0:10:09.760 --> 0:10:12.079 Time for the Bloomberg Sports Up. Thank you, Morny John Stenshower. 0:10:12.160 --> 0:10:15.320 Your morning to the Yankees first series in Arlington, Texas 0:10:15.400 --> 0:10:18.439 since Corey Kluber through a no hitter there last season. 0:10:18.520 --> 0:10:22.640 Almost another Yankee note hitter, Luis Severino, would have taken 0:10:22.679 --> 0:10:25.040 it into the eighth inning, but Aaron Boone took Severino 0:10:25.120 --> 0:10:28.280 out of the game after ninety four pitches. Rangers broke 0:10:28.360 --> 0:10:29.960 up the no hitter, but the Yanks one three to one. 0:10:30.000 --> 0:10:32.640 Home runs were John Carlos Stanton and Marwin Gonzalez. Not 0:10:32.720 --> 0:10:35.800 Aaron Judge, He's still at sixty one. Yanks and Rangers 0:10:35.800 --> 0:10:38.280 play a double header today. The Mets and Nationals played 0:10:38.320 --> 0:10:41.360 two at City Field after last night's rain out. Atlanta 0:10:41.440 --> 0:10:43.360 off the suite with the Mets had only four hits 0:10:43.440 --> 0:10:46.600 lost in Miami for nothing, but the Braves magic number 0:10:46.600 --> 0:10:48.640 when the n L East is still only one, which 0:10:48.679 --> 0:10:51.319 would mean to met wild Card series this weekend in 0:10:51.400 --> 0:10:54.040 City Field, Mets hope that Starling Marte will be able 0:10:54.080 --> 0:10:56.439 to play. They have missed his bat since he went 0:10:56.440 --> 0:10:59.239 out with the broken finger. Tony Lrusa says this retirement 0:10:59.360 --> 0:11:01.520 is final. He was out of managing for a decade. 0:11:01.840 --> 0:11:04.400 Wint of the Hall of Fame returned to manage the 0:11:04.400 --> 0:11:07.079 White Sox, now stepping down. He's had health issues. Mother 0:11:07.200 --> 0:11:12.720 Night Football big plays carried the car Gibow Sage bikes 0:11:12.720 --> 0:11:17.760 a tackle forty Tibow thirty five, twenty five twenty pricks 0:11:18.440 --> 0:11:29.319 tackle said sis kay nba are the call that fifty 0:11:29.400 --> 0:11:32.120 seven yard touchdown came after a thirty two yard TV 0:11:32.280 --> 0:11:34.959 run by Jeff Wilson and before a fifty two yard 0:11:35.000 --> 0:11:38.360 pick six meat. The Rams nine giants getting ready to 0:11:38.360 --> 0:11:40.480 fly to London to play Green Bay on Sunday. QB 0:11:40.600 --> 0:11:44.160 Daniel Jones's ankle injury said to be improving. John Staff, 0:11:44.440 --> 0:11:47.880 Bloomberg Sports Nathan, thank you, John SMP futures up forty 0:11:47.920 --> 0:11:50.240 seven points right now, dal future is surging by three 0:11:50.600 --> 0:11:53.480 eight points. Nastack futures are higher by a hundred ninety points. 0:11:53.720 --> 0:11:57.640 British pound one point one three five five strengthening against 0:11:57.679 --> 0:12:01.640 the dollar as the Conservative Party can friends continues in Birmingham. 0:12:01.640 --> 0:12:07.760 We check in live with Bloomberg's Caroline Hecker. Next Bloomberg 0:12:07.760 --> 0:12:10.320 eleven three oh weather cloudy, occasional showers and rain today. 0:12:10.400 --> 0:12:12.840 Highs only in the upper fifties. Showers will end tomorrow. 0:12:12.840 --> 0:12:16.120 We'll get into the low sixties. Low seventies are back 0:12:16.360 --> 0:12:23.400 by Thursday. Right now, rain forty five degrees, markets headlines 0:12:23.440 --> 0:12:26.439 and breaking news twenty four hours a day at Bloomberg 0:12:26.480 --> 0:12:30.560 dot Com, The Bloomberg Business Outland at Bloomberg Quick takes 0:12:30.600 --> 0:12:39.800 a Bloomberg Business Lash and I'm Karen Moscow. A rally 0:12:39.840 --> 0:12:42.840 and global markets extending into a second day, lifting US 0:12:42.920 --> 0:12:46.520 DUNK Index futures and European shares as investors wagers central 0:12:46.559 --> 0:12:49.040 banks will have to slow the pace of monetary tightening. 0:12:49.320 --> 0:12:51.920 We check the markets every fifteen minutes throughout the trading day. 0:12:52.040 --> 0:12:54.959 On Bloomberg s and P futures, they're up about forty 0:12:55.000 --> 0:12:57.760 seven points. Dow futures have three hundred two and NASDAGG 0:12:57.800 --> 0:13:01.200 futures have one hundred eighty six decks. In Germany's up 0:13:01.200 --> 0:13:03.760 almost two and a half percent. Ten year treasury of 0:13:03.840 --> 0:13:06.400 fourteen thirty seconds, he had three point five eight percent. 0:13:06.440 --> 0:13:08.880 They yield on the two year four point one percent. 0:13:09.320 --> 0:13:11.400 NIMEX Screwed oil is up a third of upper cent 0:13:11.480 --> 0:13:13.840 or thirty cents at eighty three dollars nine four cents 0:13:13.840 --> 0:13:16.040 of barrel co make school that three quarters of a 0:13:16.080 --> 0:13:19.000 percent or thirteen dollars ten cents at seventeen fifteen ten 0:13:19.040 --> 0:13:22.800 and ounce the euro point seven against the dollar British 0:13:22.800 --> 0:13:24.880 found one point one three four two and the yen 0:13:24.960 --> 0:13:28.240 one forty four point seven seven bitcoin this morning up 0:13:28.240 --> 0:13:31.079 one point two percent in nineteen thousand, eight hundred dollars. 0:13:31.240 --> 0:13:33.960 Today we're watching for reports on factory orders and durable 0:13:33.960 --> 0:13:36.240 goods orders out of ten o'clock Wall Street time, along 0:13:36.280 --> 0:13:39.400 with the Jolts jobs report. And that's a Bloomberg business flash. 0:13:39.400 --> 0:13:41.600 Now here's Munchael Bar with Moore on what's going on 0:13:41.679 --> 0:13:44.400 around the world. Muncle, good morning, Good morning, Karen. North 0:13:44.480 --> 0:13:47.160 Korea fired a missile over Japan for the first time 0:13:47.200 --> 0:13:51.080 in five years, further ratcheting up tensions over Kim John 0:13:51.160 --> 0:13:54.400 UN's nuclear program and prompting a rare public safety warning 0:13:54.400 --> 0:13:57.880 to be issued by Tokyo. The bodies of Russian soldiers 0:13:57.960 --> 0:14:01.000 were lying in the streets of a key eastern Ukrainian 0:14:01.080 --> 0:14:04.960 city today. It follows the retreat that marked the latest 0:14:04.960 --> 0:14:08.800 defeat from Moscow. In baseball, the Yankees one Aaron Judge 0:14:08.840 --> 0:14:11.360 still at sixty one homers with the time running out, 0:14:11.679 --> 0:14:15.360 The Red Sox and the A's won, the Orioles and 0:14:15.480 --> 0:14:19.240 Giants lost. The Meds and Nationals were postponed because of rain, 0:14:19.520 --> 0:14:22.120 and we'll try to make it up today Monday Night Football. 0:14:22.200 --> 0:14:25.240 The forty nine is Beat the Rams nine Global news 0:14:25.320 --> 0:14:28.200 twenty four hours a day on here and on Bloomberg Quicktake, 0:14:28.520 --> 0:14:31.400 powered by more than twenty seven hundred journalists and analyist 0:14:31.520 --> 0:14:33.920 more than a hundred twenty countries. How Michael Barr, this 0:14:33.960 --> 0:14:36.640 is Bloomberg. Gave it Okay? Michael. Thanks, It's five nineteen 0:14:36.640 --> 0:14:40.120 on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:40.120 --> 0:14:42.240 This is Bloomberg Daybreak. We want to turn down to 0:14:42.280 --> 0:14:45.640 the latest in UK politics. Prime Minister Liz Trust has 0:14:45.960 --> 0:14:48.760 given in on one aspect of her budget, but there 0:14:48.840 --> 0:14:52.920 may be new points of contention within her own Conservative Party. 0:14:53.000 --> 0:14:55.960 Let's head right over to the Conservative Party conference down 0:14:56.040 --> 0:14:59.840 today three in Birmingham, England. Bloomberg day Break. You're a banker, 0:15:00.000 --> 0:15:03.320 Caroline Hepgert joins us live. So what is the latest, 0:15:03.360 --> 0:15:06.800 Caroline Nathan, Good morning. Yes, we are building up to 0:15:07.000 --> 0:15:10.480 Liz Trust is big speech, the Prime Minister's speech tomorrow morning. 0:15:10.680 --> 0:15:15.200 But the bone of contention is this Universal Credit. It's 0:15:15.200 --> 0:15:18.160 a welfare payment worth about three d and thirty four 0:15:18.160 --> 0:15:21.560 pounds per month to a single recipient and it's whether 0:15:21.680 --> 0:15:24.000 or not that benefit will go up in line with 0:15:24.080 --> 0:15:27.280 inflation or not. This from the Prime Minister this morning 0:15:27.280 --> 0:15:30.680 on a media interview. No decision has been made yet 0:15:30.840 --> 0:15:35.680 on the benefit uprating. This is potentially explosive for the government. 0:15:35.680 --> 0:15:38.840 You're talking about the poorest people in society and whether 0:15:38.960 --> 0:15:41.560 or not the government actually comes through with something that 0:15:41.600 --> 0:15:45.440 the previous administration had promised to do. And it comes, 0:15:45.520 --> 0:15:48.040 Nathan on the back of a u turn around the 0:15:48.080 --> 0:15:52.880 top rate of tax yesterday. But this welfare payment issue 0:15:53.280 --> 0:15:56.000 is really perhaps the next you to drop for the government. Well, 0:15:56.000 --> 0:15:59.280 if she's saying that there's no decision made on this 0:15:59.560 --> 0:16:02.560 cruise all aspect of the budget, given the cost of 0:16:02.640 --> 0:16:06.000 living crisis in the UK, I mean, what comes next? 0:16:06.000 --> 0:16:09.960 How can the trust government rebuild its credibility? Yeah, this 0:16:10.160 --> 0:16:12.560 is the problem. I mean we saw that Bronco write 0:16:12.560 --> 0:16:16.320 of sterling and guilt because of the Mini Budget, an 0:16:16.360 --> 0:16:20.680 announcement on a huge set of tax cutting policies without 0:16:20.680 --> 0:16:23.720 a real plan as to how that would be funded. 0:16:24.120 --> 0:16:27.120 Um and it came also without the Fiscal Watchdog giving 0:16:27.160 --> 0:16:31.280 its judgment, the independent organization that gives its view on 0:16:31.400 --> 0:16:34.440 government tax and spending plans. Look, there was a bit 0:16:34.480 --> 0:16:38.920 of movement because Quasi quarteng Um has talked now about 0:16:38.960 --> 0:16:43.080 bringing forwards the o b R predictions so that that 0:16:43.160 --> 0:16:47.360 report on the government's fiscal plans would come sooner. The 0:16:47.400 --> 0:16:50.280 FT says it could come before the end of this month. 0:16:50.360 --> 0:16:53.760 Our own Bloomberg reports have been pressing ministers on this issue, 0:16:54.240 --> 0:16:56.680 and I was speaking to the MP Anthony Brownie, sits 0:16:56.680 --> 0:16:58.640 on the Treasury Select Committee, and he was saying it 0:16:58.640 --> 0:17:01.640 would be a great idea if we actually knew the 0:17:01.720 --> 0:17:04.480 costings for the government's plans before the next Bank of 0:17:04.480 --> 0:17:07.639 England decision on the third of November. But again we 0:17:07.680 --> 0:17:10.320 still don't know, and that is also part of the 0:17:10.359 --> 0:17:14.520 credibility issue. It's about messaging, it's about timing, and it's 0:17:14.560 --> 0:17:18.160 fundamentally also about policy. So this is a very very 0:17:18.200 --> 0:17:21.159 difficult moment for this government. You know, the Conservatives have 0:17:21.200 --> 0:17:24.080 been in power for twelve years, Nathan, and of course 0:17:24.119 --> 0:17:26.080 those trust has only been in power for just about 0:17:26.080 --> 0:17:28.440 a month here. But are we expecting that we could 0:17:28.480 --> 0:17:31.560 get further details from the Prime Minister when she makes 0:17:31.600 --> 0:17:34.960 that speech. Is that's something that could come down at 0:17:35.000 --> 0:17:38.600 the conference itself, Well, that is possible. I mean, the 0:17:38.640 --> 0:17:41.600 whole point of the Conservative Party conference is to gather 0:17:42.119 --> 0:17:46.960 together MPs, counselors, lobbyists, think tanks. It's the sort of 0:17:47.040 --> 0:17:51.400 whole Conservative universe here at the i c C. It's 0:17:51.440 --> 0:17:54.480 in in Birmingham this year, in the North of England. 0:17:54.920 --> 0:17:57.399 So yes, there will be pressure on the Prime Minister 0:17:57.480 --> 0:18:00.679 to say more. And yet they've been it's slow in 0:18:00.760 --> 0:18:04.600 terms of releasing the details, and they have um you know, 0:18:04.680 --> 0:18:07.760 downplayed the market impact in a lot of ways. They've 0:18:07.760 --> 0:18:12.600 blamed largely still the problems of the government on the 0:18:12.640 --> 0:18:15.520 inflation shot from the war in Ukraine, and they wanted 0:18:15.560 --> 0:18:18.719 to take very little responsibility you know, for the unfunded 0:18:18.720 --> 0:18:21.399 tax cut plans. So yes, all eyes will be on 0:18:22.720 --> 0:18:25.879 Liz Trust tomorrow. She speaks sometime between ten a and 0:18:26.000 --> 0:18:28.880 twelve lunchtime, and they'll be of course a big build 0:18:28.920 --> 0:18:31.480 up before we get to her speech. Quasi kwarteng speech 0:18:31.520 --> 0:18:33.920 was only twenty minutes long. It was very very brief 0:18:34.000 --> 0:18:38.840 by conference standards, Nathan, only about a minute left here, Caroline. 0:18:38.840 --> 0:18:42.280 But what's the level of support among Conservatives for Liz 0:18:42.359 --> 0:18:46.520 Trust right now? Well, I was speaking to itself this morning. 0:18:47.080 --> 0:18:50.359 Amongst the voters, extremely dubious is how I'd put it. 0:18:50.800 --> 0:18:53.800 The latest polling from Savanta Comras puts the Labor Party 0:18:53.840 --> 0:18:57.600 twenty five point lead over the Conservatives. That is the 0:18:57.680 --> 0:19:01.720 highest vote share for Labor since Converse started polling. It 0:19:01.840 --> 0:19:05.080 feels very much in the country as if the polling 0:19:05.119 --> 0:19:08.640 and voters have tipped towards the Labor Party in a 0:19:08.640 --> 0:19:12.040 big way versus concernations, and that has happened very quickly, 0:19:12.080 --> 0:19:14.240 just in the last couple of weeks, as it is 0:19:14.280 --> 0:19:17.280 just and quasi cassang of come into office. Yeah, it's 0:19:17.280 --> 0:19:19.359 been pretty stunning to watch, even from this side of 0:19:19.400 --> 0:19:21.520 the pond. Thanks for this, Caroline. Great having you on 0:19:21.560 --> 0:19:24.160 with us this morning from Birmingham, England, where the conference 0:19:24.160 --> 0:19:27.200 of the Conservative Party continues and we will be watching 0:19:27.320 --> 0:19:30.719 very closely as Prime Minister Liz Trust gives that speech 0:19:30.720 --> 0:19:33.240 to the culmination of the conference. You want to keep 0:19:33.240 --> 0:19:36.159 it with Bloomberg Radio to get all the latest on 0:19:36.240 --> 0:19:39.760 the turmoil within the UK government right now. Looking at 0:19:39.760 --> 0:19:42.919 the British pound, it's gaining strength against the dollar right 0:19:42.960 --> 0:19:46.000 now at one point one three zero. As far as 0:19:46.040 --> 0:19:48.480 futures go, those are gaining strength as WELLS and p 0:19:48.680 --> 0:19:51.120 futures up forty nine points. Now future is up three 0:19:51.480 --> 0:19:55.680 twenty three and NASDAC futures are higher by one points. 0:19:55.680 --> 0:19:58.840 The tenure Treasury is up thirteen thirty seconds. You'll do 0:19:59.160 --> 0:20:08.320 three point five eight. This is Bloomberg Bloomberg eleven three 0:20:08.320 --> 0:20:10.960 oh weather clouds, occasional showers and rain. Today breezy with 0:20:11.000 --> 0:20:14.719 mines only in the upper fifties. Showers line tomorrow low sixties. 0:20:14.920 --> 0:20:17.520 We'll be back in the low seventies by Thursday. Right now, 0:20:17.600 --> 0:20:23.840 raining forty five in Central Park. Broadcasting live from the 0:20:23.920 --> 0:20:27.880 Bloomberg Interactive Broker's studio in New York. Bloomberg E Living 0:20:27.920 --> 0:20:32.320 Free to Washington, d C. Bloomberg on to Boston, Bloomberg 0:20:32.359 --> 0:20:35.520 one O six one to San Francisco, Bloomberg N sixty 0:20:35.640 --> 0:20:38.879 to the country Sirius XM Cho one nine and around 0:20:38.920 --> 0:20:42.840 the globe the Bloomberg Business app in Bloomberg Radio dot Com. 0:20:42.880 --> 0:20:51.880 This is Bloomberg Daybreak thirty on Wall Street. Good morning, 0:20:51.880 --> 0:20:54.960 I'm Nathan Hagar and I'm Karen Mosko. Our just about 0:20:55.000 --> 0:20:57.480 four hours away from the open of US trading. Let's 0:20:57.520 --> 0:20:58.920 get you have to date in the news you need 0:20:58.960 --> 0:21:01.720 to know at this hour. US futures rising this morning 0:21:01.760 --> 0:21:03.720 on the heels of the best day for stocks in 0:21:03.760 --> 0:21:07.040 two months. Still there's room to go lower from here, 0:21:07.119 --> 0:21:10.480 and that's according to Wealth Enhancement Group Senior VP Nicole Web, 0:21:10.760 --> 0:21:13.280 the market may come down to kind of that thirteen 0:21:13.320 --> 0:21:16.960 times to fifteen times multiplier, and when we get there, 0:21:17.160 --> 0:21:20.359 the SMP looks more fairly priced within reason, closer to 0:21:20.440 --> 0:21:22.920 three thousand and so we do think when you come 0:21:22.960 --> 0:21:26.440 through that support of thirty, there's there's probably still room 0:21:26.600 --> 0:21:30.240 below that to go. Wealth Enhancement Groups Nicole Web says 0:21:30.280 --> 0:21:33.280 the US is likely and during a period of structurally 0:21:33.560 --> 0:21:37.000 slower growth. I meantime, Karen FED speakers continue the drumbeat 0:21:37.080 --> 0:21:39.920 for higher rates. New York Fed President John Williams says 0:21:39.920 --> 0:21:42.960 tightening still has a significant way to go. Williams is 0:21:42.960 --> 0:21:45.720 one of five FED officials speaking at events today. Priam 0:21:45.800 --> 0:21:48.440 iSER ahead of Global Rate Strategy A TV Securities thinks 0:21:48.480 --> 0:21:51.280 the Fed won't stop hiking anytime soon. We should be 0:21:51.320 --> 0:21:53.280 pricing in a a session. I think the recession is 0:21:53.320 --> 0:21:55.359 pretty much baked in the cake for next year in 0:21:55.359 --> 0:21:59.280 the US, and I don't buy the shallow short recession argument. 0:21:59.480 --> 0:22:02.520 This could much longer lasting because the fight is going 0:22:02.560 --> 0:22:05.000 to be reluctant to start to ease. They're so worried 0:22:05.040 --> 0:22:07.080 about the nineteen seventies that I think they're going to 0:22:07.160 --> 0:22:10.200 be late on the way to easing policy. So the 0:22:10.320 --> 0:22:13.760 Tanya is attractive as a risk hedge. A miserable with 0:22:13.800 --> 0:22:16.720 TV security says rate hikes could continue into next year 0:22:17.160 --> 0:22:20.879 despite the hawkish rhetoric Nathan. Global stocks are rallying this morning. 0:22:20.920 --> 0:22:24.240 The MSCI Asia Pacific Index ros more than two percent overnight, 0:22:24.240 --> 0:22:26.880 and You're up. Stock six is currently up two point 0:22:26.960 --> 0:22:29.399