WEBVTT - Bloomberg Daybreak: November 14, 2022 - Hour 1 (Radio) 0:00:01.400 --> 0:00:04.720 By from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:04.800 --> 0:00:08.119 day Break for a Monday, November fourteen two. Coming up 0:00:08.160 --> 0:00:11.280 this hour, President Biden meets with China's she Jing Ping, 0:00:11.320 --> 0:00:13.800 has tensions between the two countries simmer. A win for 0:00:13.840 --> 0:00:17.119 Democrats is the party cements control of the Senate. Stocks 0:00:17.120 --> 0:00:19.640 start the day coming off their best week since June, 0:00:19.800 --> 0:00:22.360 and a top Fed official says there's still a ways 0:00:22.400 --> 0:00:25.960 to go before stopping interest rate heights. Sandy Hook Memorial 0:00:26.040 --> 0:00:28.320 for the twenty six people killed opens to the public, 0:00:28.360 --> 0:00:31.000 plus the t s A is investigating Howlman got on 0:00:31.040 --> 0:00:34.600 off Frontier Airlines flight with two box cutters. I'm Michael 0:00:34.640 --> 0:00:37.239 blar More, I'm John stash Our on Sports eight one 0:00:37.280 --> 0:00:40.159 Barkley with the Giants to victory over Euston the Nixon 0:00:40.200 --> 0:00:45.320 Nets lost to win for the Rangers. That's all Strady 0:00:45.360 --> 0:00:48.720 Ahead on Bloomberg day Break on Bloomberg eleven Free on 0:00:48.800 --> 0:00:53.120 New York, Bloomberg N one, Washington, d C, Bloomberg one 0:00:53.120 --> 0:00:57.639 oh six one, Boston, Bloomberg nine sixties, San Francisco, Syrius 0:00:57.760 --> 0:01:00.880 x M one nineteen and around the world on Bloomberg 0:01:00.960 --> 0:01:08.040 Radio dot Com and via the Bloomberg Business app. Good morning, 0:01:08.080 --> 0:01:11.400 I'm Nathan Hagar and I'm Karen Moscow. US DOT index 0:01:11.440 --> 0:01:14.399 futures are lower this morning. We're coming up to five 0:01:14.440 --> 0:01:16.119 o one on Wall Street, and we checked the markets 0:01:16.160 --> 0:01:18.960 every fifteen minutes throughout the trading day. On Bloomberg. U 0:01:18.959 --> 0:01:21.400 S and P Future is down about twenty points this morning. 0:01:21.640 --> 0:01:24.080 Down Future is down a hundred twenty and NASDAG Future 0:01:24.120 --> 0:01:28.279 is down eighty nine ten. Your treasury, Treasury down thirty seconds, 0:01:28.640 --> 0:01:31.119 three point eight nine percent. They yield on the two 0:01:31.200 --> 0:01:34.440 year four point three eight percent. Nathan, Karen, we begin 0:01:34.520 --> 0:01:36.880 this morning with a high powered meeting underway between the 0:01:36.959 --> 0:01:40.800 leaders of the US and China. Discussions have begun between 0:01:40.840 --> 0:01:44.520 Presidents Joe Biden and Shi Jinping in Bali, Indonesia. They 0:01:44.520 --> 0:01:46.760 are meeting on the sidelines of the G twenty summit. 0:01:46.840 --> 0:01:49.560 Bloomberg Stephen Angel is there and has the very latest. 0:01:49.800 --> 0:01:52.280 They're high stakes. Obviously, is the first face to face 0:01:52.360 --> 0:01:55.960 meeting since Joe Biden became president between himself and s jn. Ping. 0:01:56.040 --> 0:01:59.120 They've met many times before. They've had five conversations over 0:01:59.120 --> 0:02:01.760 the phone or video ofference since he became president. They've 0:02:01.800 --> 0:02:05.840 accumulated some sixty seven hours face to face over the years. 0:02:06.000 --> 0:02:08.960 Of course, as Joe Biden was Vice president under Obama, 0:02:09.240 --> 0:02:11.200 so they know each other. But there are so many 0:02:11.280 --> 0:02:14.200 sticking issues as the relationship between China and the United 0:02:14.280 --> 0:02:17.800 States has in many accounts deteriorated to the point where 0:02:17.919 --> 0:02:20.839 they've cut off military to military dialogue. They've cut off 0:02:20.960 --> 0:02:25.120 some climate change cooperation. Following that controversial visit by the 0:02:25.120 --> 0:02:28.800 House Speaker Nancy Pelosi to Taiwan Bloomberg, Stephen angle in 0:02:28.840 --> 0:02:32.600 Bali says the Biden administrations played down expectations for this meeting, 0:02:32.680 --> 0:02:37.760 casting it as a first step rather than a decisive showdown. Still, Nathan, 0:02:37.840 --> 0:02:40.639 President Biden says he's coming into this meeting with President 0:02:40.720 --> 0:02:43.440 She in a strong position after a better than expected 0:02:43.480 --> 0:02:46.519 mid term election. Democrats have retained control of the Senate. 0:02:46.760 --> 0:02:50.200 Afterword that Katherine Cortez Master won re election in Nevada, 0:02:50.520 --> 0:02:53.280 the Red Way for Republicans did not come to pass. 0:02:53.440 --> 0:02:56.760 We get more from Bloomberg, said Baxter. There's growing thought 0:02:56.800 --> 0:03:00.960 that it was voters repudiating extremism and a election deniers. 0:03:01.280 --> 0:03:04.600 Republican Governor Chris Sanunu on ABC says the party needs 0:03:04.639 --> 0:03:06.920 to stand up and take notice. There's a sense of 0:03:06.919 --> 0:03:09.400 extremism that I think a lot of Republicans were painted with, 0:03:09.520 --> 0:03:12.359 rightfully or not, and senna majority of Leader Truck Schumer. 0:03:12.480 --> 0:03:17.359 Many Republican leaders actually encouraged the threats of violence, the violence, 0:03:17.440 --> 0:03:19.799 the denial of an election. The House is still in 0:03:19.840 --> 0:03:22.320 the balance, but Democrats pretty much need to run the 0:03:22.360 --> 0:03:25.920 table to win the House. In San Francisco, I'm at 0:03:25.960 --> 0:03:29.000 Baxter Bloomberg day break. Thanks to turning to markets now, 0:03:29.080 --> 0:03:32.080 stocks are coming off their best week since June. Tech 0:03:32.240 --> 0:03:34.720 was the big winner following last week's inflation report. The 0:03:34.800 --> 0:03:38.720 NASTAC one hundred climbed nine point eight percent on Thursday 0:03:38.720 --> 0:03:41.040 and Friday for its best to day games since two 0:03:41.080 --> 0:03:44.240 thousand eight. Ryan Dietrich is chief market strategist at the 0:03:44.280 --> 0:03:47.800 Carson Group. But we are optimistic. We made another major 0:03:47.920 --> 0:03:51.720 market low in October. Six of the last seventeen bear 0:03:51.760 --> 0:03:56.120 markets ended in October. M could be another one, and again, 0:03:56.200 --> 0:03:59.720 expectations are so low that any good news can continue 0:03:59.760 --> 0:04:02.880 to push this beach ball higher. The Carson Groups. Ryan 0:04:02.880 --> 0:04:06.120 Dietrich says the SMP fire is up eleven percent since 0:04:06.160 --> 0:04:08.840 the end of September. Well. At the same time, Nathan 0:04:08.960 --> 0:04:12.320 stocks are likely to end next year almost unchanged from 0:04:12.320 --> 0:04:15.560 their current level. That's according to Morgan Stanley's Michael Wilson, 0:04:15.680 --> 0:04:18.279 the top rated strategists a volatile path to get to 0:04:18.320 --> 0:04:22.600 his three year end SNP target. It's about two percent 0:04:22.640 --> 0:04:26.120 below where stocks closed on Friday. Wilson expects equities to 0:04:26.200 --> 0:04:29.039 fall as earnings estimates come down, before rebounding in the 0:04:29.120 --> 0:04:31.880 second half of next year. Well Many strategist Karen say 0:04:31.920 --> 0:04:34.040 the key for the markets will be the FED pivoting 0:04:34.080 --> 0:04:37.640 from its rate hike cycle. However, FED Governor Christopher Waller 0:04:37.680 --> 0:04:39.760 says there is still a ways to go before they 0:04:39.800 --> 0:04:42.840 stop raising interest rates. Waller told a conference in Sydney 0:04:42.839 --> 0:04:44.919 this morning the rates will stay high for a while 0:04:45.000 --> 0:04:47.960 until inflation gets closer to the Fed's target. Well. Nathan 0:04:48.000 --> 0:04:51.160 Goleman Sacks sees a significant decline in inflation next year. 0:04:51.240 --> 0:04:53.880 The firm expects the core PC measure to decline to 0:04:53.880 --> 0:04:57.440 two point nine percent by December three. It's currently at 0:04:57.480 --> 0:05:00.599 five point one percent. Goleman points to saw fitting supply 0:05:00.680 --> 0:05:03.560 chain problems that peak and a shelter inflation and slower 0:05:03.640 --> 0:05:05.440 wage growth. All Right, we want to bring you up 0:05:05.440 --> 0:05:09.200 to date now on the latest developments involving FTX. Authorities 0:05:09.200 --> 0:05:12.400 in the Bahamas are investigating whether there was criminal misconduct 0:05:12.680 --> 0:05:16.000 in the collapse of the crypto exchange. Police and regulators 0:05:16.000 --> 0:05:19.240 interviewed co founder Sam BigMan Freed on Saturday. They're growing 0:05:19.279 --> 0:05:22.760 signs f t X customers have little chance of recovering 0:05:22.839 --> 0:05:26.480 their deposits. The head of rival exchange, Binance cz Jau, 0:05:26.600 --> 0:05:30.120 says the industry can't leave it to regulators to police wrongdoing. 0:05:30.360 --> 0:05:32.920 No one can protect a backlayer. To be very frank, 0:05:33.040 --> 0:05:35.760 if a guy is very good at lying and very 0:05:35.760 --> 0:05:38.040 good at just pretending to be well, he's not somebody 0:05:38.040 --> 0:05:39.760 wants to vital let the law. The law is not 0:05:39.760 --> 0:05:42.919 going to prevent that. The law can help to reduce 0:05:42.960 --> 0:05:45.040 that um as the industry players wish would be more 0:05:45.120 --> 0:05:47.440 vocal about it, which is that very strong standards for 0:05:47.480 --> 0:05:50.160 the industry finances. C z Jaw was involved in a 0:05:50.200 --> 0:05:52.560 public feud with Sam Bankman Fried's f t X, a 0:05:52.600 --> 0:05:54.760 dispute that played out as part of the collapse of 0:05:54.839 --> 0:05:57.680 f t X last week. We turn our attention now 0:05:57.720 --> 0:06:00.440 to Elon Musk, the world's richest man, as he has 0:06:00.480 --> 0:06:03.200 too much work on his plate. Is currently the CEO 0:06:03.279 --> 0:06:06.520 of Twitter, Tesla, and SpaceX, plus a few other ventures. 0:06:06.800 --> 0:06:09.680 Speaking at a business conference running alongside the G twenty, 0:06:09.800 --> 0:06:12.679 must says the amount that he tortures himself is quote 0:06:12.800 --> 0:06:15.800 next level. I mean, I'm really working at the absolute 0:06:15.960 --> 0:06:18.800 most amount that I can work from mordingful nine seven 0:06:18.880 --> 0:06:23.320 days a week. Um, so there's not something I'd recommend. Frankly, 0:06:23.800 --> 0:06:29.040 Um yeah. Moscow took over Twitter earlier this month, has 0:06:29.080 --> 0:06:31.560 already fired around half the firm staff and into the 0:06:31.600 --> 0:06:34.960 company's work from home policy. Not to another corporate story 0:06:35.000 --> 0:06:38.880 this morning, Roche says along awaited experimental drug for Alzheimer's 0:06:38.880 --> 0:06:41.800 disease failed in a pair of large studies. It is 0:06:41.800 --> 0:06:44.880 another disappointment in a research field that's been marred with failures. 0:06:45.160 --> 0:06:49.280 Rose shares right now are down five in Europe and finally, 0:06:49.360 --> 0:06:52.800 Nathan London has lost its crown as Europe's biggest stock market. 0:06:52.839 --> 0:06:57.000 It's now behind Paris as economic growth continued, concerns way 0:06:57.000 --> 0:07:01.400 on UK assets. Meantime, China's relaxation COVID rules is boosting 0:07:01.400 --> 0:07:05.480 French luxury shares. Currency movements have also been an advantage 0:07:05.480 --> 0:07:08.520 for Parish as the pounds week in against the dollar. 0:07:08.640 --> 0:07:12.240 This year, the euro has spared slightly better, weakening around nine. 0:07:13.040 --> 0:07:15.640 And straight ahead, we have your latest local headlines plus 0:07:15.680 --> 0:07:23.600 the check of sports, and this is Bloomberg. Thank you, Karen. 0:07:23.600 --> 0:07:25.640 It's five oh seven on Wall Street with thirty nine 0:07:25.640 --> 0:07:28.360 degrees in Central Park, head only to the upper forties today. 0:07:28.400 --> 0:07:30.480 We gotta crash northbound New York State through way in 0:07:30.480 --> 0:07:33.560 your exit ten. Michael Bars here with what else is 0:07:33.600 --> 0:07:35.800 going on in New York and around the world. Good morning, Michael, 0:07:35.920 --> 0:07:38.880 Good morning Nathan. The long awaited memorial to the victims 0:07:38.920 --> 0:07:42.320 of the Sandy Hook Elementary School shooting officially open to 0:07:42.360 --> 0:07:45.480 the public as today, drawing visitors steadily throughout the day. 0:07:45.920 --> 0:07:49.000 The circular memorial pool stood in front of the engraved 0:07:49.160 --> 0:07:52.720 names of the twenty first graders and six educators killed 0:07:52.720 --> 0:07:56.160 a short distance from the Connecticut school nearly ten years ago. 0:07:56.760 --> 0:07:59.720 There was no ceremony, in keeping with New Town tradition 0:07:59.800 --> 0:08:03.440 of marking anniversaries and other remembrances of the shooting with 0:08:03.560 --> 0:08:07.240 quiet reflection, just what Jenny Hubbard and other Sandy Hook 0:08:07.320 --> 0:08:09.920 parents and families were hoping for. When you have a 0:08:10.000 --> 0:08:14.240 tragedy like Sandy Hook, or any other tragedy that rocks 0:08:14.400 --> 0:08:17.840 any community. It's nice to have a place that marks 0:08:18.120 --> 0:08:21.280 that moment. It will be ten years next month at 0:08:21.320 --> 0:08:24.680 Jenny's daughter Katherine Hubbard, just six, was killed in the 0:08:24.720 --> 0:08:28.160 Sandy Hook shooting. Former Vice President Mike Pence is talking 0:08:28.200 --> 0:08:31.760 about what happened during the January six attack ahead of 0:08:31.760 --> 0:08:35.280 his new book released. Pence on ABC condemned then President 0:08:35.320 --> 0:08:38.840 Trump's actions that day, saying he endangered his family and 0:08:38.880 --> 0:08:41.880 everyone in the Capitol. He says the President's words were 0:08:41.960 --> 0:08:44.640 reckless and it was clear he decided to be part 0:08:44.679 --> 0:08:46.839 of the problem. But I turned to my daughter, who 0:08:46.920 --> 0:08:50.319 was standing nearby, when I said, it doesn't encouraged to 0:08:50.360 --> 0:08:54.320 break the law. Takes courage to uphold the law. Mike 0:08:54.320 --> 0:08:57.960 Pence's new book, entitled So Help Me God, comes out tomorrow. 0:08:58.400 --> 0:09:01.720 More hospitals are reporting a surge of patients young and 0:09:01.880 --> 0:09:05.600 old with RSV and the flu, the most and earliest 0:09:05.600 --> 0:09:09.720 in years. Connecticut hospitals are considering asking for National Guard help. 0:09:10.080 --> 0:09:15.280 Dr Ian Michaelo, Connecticut Children's med Center Hartford says that 0:09:15.320 --> 0:09:18.600 there e r is full with longer wait times. Some 0:09:18.679 --> 0:09:21.600 people are putting a twin Dammi the younger children. Unfortunately, 0:09:21.679 --> 0:09:24.160 the sixth of some morning air ways, they can't deal 0:09:24.200 --> 0:09:27.559 with the secretions as easily as older children, so those 0:09:27.679 --> 0:09:30.840 tends to be the sicker children. Dr Michaelo says older 0:09:30.880 --> 0:09:35.439 patients potentially getting pneumonia is also a concern. There are 0:09:35.480 --> 0:09:38.079 new concerns about airport security after what happened on the 0:09:38.160 --> 0:09:41.760 Frontier Airlines plane late last week. The t s A 0:09:41.760 --> 0:09:44.000 is sending some agents back to training after a man 0:09:44.040 --> 0:09:47.160 board at a Frontier Airlines flight in northern Kentucky with 0:09:47.240 --> 0:09:50.559 two box cutters and reportedly threatened to harm other passengers. 0:09:51.000 --> 0:09:53.440 Global News twenty four hours a day on air and 0:09:53.559 --> 0:09:56.440 on Bloomberg Quick Take, powered by more than twenty seven 0:09:56.520 --> 0:09:58.800 under journalists and analysts more than a hundred twenty countries. 0:09:59.120 --> 0:10:06.280 Michael Barne, this is Berg NA. Thanks Michael. Almost five 0:10:06.280 --> 0:10:08.600 ten on Wall Street time for the Bloomberg Sports Update Party. 0:10:08.640 --> 0:10:11.280 If I try state outing. Good morning, John Stashup, Good Morning. 0:10:11.360 --> 0:10:13.280 Eighth of the Day began with a report that during 0:10:13.320 --> 0:10:15.960 the bye week, the Giants held contract tops with Sa 0:10:16.040 --> 0:10:18.280 Kwan Barkley, but the two sides are far apart and 0:10:18.320 --> 0:10:20.959 won't talk again until after the season. Barkley is having 0:10:21.280 --> 0:10:24.840 a terrific season. Yesterday he was busy, thirty five carries 0:10:24.880 --> 0:10:27.080 a hundred and fifty two yards of the Giants went 0:10:27.160 --> 0:10:33.360 to him late in the game, handoff, Barkley runs right again, 0:10:33.440 --> 0:10:36.880 don't touch down. Giants sick kan Berkley put two yards out. 0:10:39.160 --> 0:10:42.640 It's just six rushing touchdown of the season, and the 0:10:42.760 --> 0:10:46.400 Giants answer Houston with seven of their own with one 0:10:46.440 --> 0:10:49.000 to come. Fan to call. Barkley now leads the NFL, 0:10:49.040 --> 0:10:51.040 and Roschi is a big reason why the Giants are 0:10:51.160 --> 0:10:53.040 seven and two. They meet used to the met like 0:10:53.200 --> 0:10:56.640 twenty four to sixteen couple of Daniel Jones t D passes. 0:10:56.679 --> 0:10:59.440 The defense allowed only one t D and another winnable 0:10:59.480 --> 0:11:03.160 game for Blew this Sunday at home against Detroit Giantstown's 0:11:03.160 --> 0:11:06.320 sole possession of second place NFC East as Dallas lost 0:11:06.320 --> 0:11:09.160 in overtime at Green Bay Packers end of five game, 0:11:09.240 --> 0:11:12.040 losing three game of the day, maybe the season. In Buffalo, 0:11:12.200 --> 0:11:14.760 the Bills led Minnesota by seventeen of the second half. 0:11:14.760 --> 0:11:17.679 The game appeared over, went up four. They stopped the 0:11:17.800 --> 0:11:20.280 Vikings of the one yard line, but Josh Allen fumbled 0:11:20.280 --> 0:11:22.680 a snap. The Vikes recovered for a go ahead touchdown. 0:11:22.720 --> 0:11:25.320 The Bills still tied the game of Minnesota one thirty 0:11:25.360 --> 0:11:27.439 three thirty and overtime. The Vikings are eight and one 0:11:27.840 --> 0:11:29.920 two games at the Garden. First. The next they got 0:11:29.920 --> 0:11:33.440 outscored by Oklahoma City one forty five to one thirty five. 0:11:33.520 --> 0:11:36.559 The thundershot sixty three percent Rangers then beat Arizona four 0:11:36.600 --> 0:11:39.600 to one. Neat's the second straight game with the Staples Center. 0:11:39.640 --> 0:11:41.480 They beat the Clippers, but they lost to the Lakers, 0:11:41.520 --> 0:11:44.160 who were without Lebron James Anthony Davis scored thirty seven. 0:11:44.480 --> 0:11:47.640 The Lakers won won sixteen one oh three. John Stash Downward, 0:11:47.640 --> 0:11:51.240 Bloomberg Sports, Okay, John, thank you. SMP futures right now 0:11:51.240 --> 0:11:54.319 are down seventeen points, sound features down a hundred. NASDAC 0:11:54.320 --> 0:11:56.960 futures are lower by eighty points. We look at the 0:11:56.960 --> 0:12:00.680 path ahead for this market. Lori Calvacina, head of US 0:12:00.720 --> 0:12:04.160 Equity Strategy at RBC Capital Markets, durin US. Next, this 0:12:04.240 --> 0:12:09.199 is Bloomberg. Bloomberg Sports was brought to you by Audie. 0:12:09.200 --> 0:12:11.240 Don't let someone else drive off in the Outie model. 0:12:11.280 --> 0:12:14.520 You've always wanted visit your local price state. Audie Wheeler 0:12:14.679 --> 0:12:16.800 kept behind the Wheel of Yours today, or visit autie 0:12:16.800 --> 0:12:23.800 Offers dot com for more information, markets, headlines and breaking 0:12:23.840 --> 0:12:26.720 news twenty four hours a day at Bloomberg dot com, 0:12:26.840 --> 0:12:30.360 the Bloomberg Business at and at Bloomberg picktap. This is 0:12:30.400 --> 0:12:39.400 a Bloomberg Business flash and I'm Karen Moscow. US dot 0:12:39.440 --> 0:12:42.640 Index futures are falling while a European benchmark takes higher, 0:12:42.760 --> 0:12:45.720 Treasury yields advancing. The dollar flipped to a gain after 0:12:45.760 --> 0:12:49.599 weekend comments from Federal Reserve Governor Christopher Waller that policymakers 0:12:49.640 --> 0:12:52.120 had a ways to go before ending interest rate hikes. 0:12:52.400 --> 0:12:54.560 And we checked the markets every fifteen minutes throughout the 0:12:54.559 --> 0:12:58.439 trading day. On Bloomberg, SNP futures down at seventeen points 0:12:58.440 --> 0:13:00.839 this morning down futures down a hundred and nastack future 0:13:00.880 --> 0:13:03.600 is down seventy eight The decks in Germany's up four 0:13:03.679 --> 0:13:06.800 tenths of upper cent ten year treasury down seventeen thirty 0:13:06.840 --> 0:13:09.240 seconds he three point eight seven percent. They yield on 0:13:09.280 --> 0:13:12.400 the two year four point three six percent. Nimex screwn 0:13:12.440 --> 0:13:15.120 oil is down one on the dollar, six and eighty 0:13:15.160 --> 0:13:18.160 seven dollars ninety cents a barrel. Comex School down six 0:13:18.160 --> 0:13:20.720 tenths percent or ten dollars ten cents at seventeen fifty 0:13:20.800 --> 0:13:24.160 nine forty announced the euro one point two nine five 0:13:24.240 --> 0:13:26.800 against the dollar, British found one point one seven six 0:13:26.840 --> 0:13:29.760 five and the end one forty point three four. And 0:13:29.760 --> 0:13:32.040 look at a bitcoin this morning is higher of more 0:13:32.080 --> 0:13:35.480 than two percent at sixteen thousand, seven hundred dollars. That's 0:13:35.480 --> 0:13:38.160 a Bloomberg business flash. Now here's Michael Barr with more 0:13:38.240 --> 0:13:40.480 on what's going on around the world. Michael cool Big, 0:13:40.760 --> 0:13:44.000 Good morning, Karen. President Joe Biden is meeting right now 0:13:44.040 --> 0:13:46.920 with Chinese President Chi Jing pay for their first in 0:13:47.080 --> 0:13:50.439 person meeting since the US president took office nearly two 0:13:50.520 --> 0:13:52.760 years ago. Their meeting on the sidelines of the G 0:13:52.960 --> 0:13:57.360 twenty seven in Indonesia. Both men entered the highly anticipated 0:13:57.400 --> 0:14:01.520 meeting with Bolster political standing at home. A bomb in 0:14:01.600 --> 0:14:04.880 this den Bull's popular tourist district killed at least six 0:14:04.920 --> 0:14:08.120 people and wounded eighty one, with Turkish officials saying day 0:14:08.200 --> 0:14:11.679 suspect the terror attack. In the NFL, the Giants one 0:14:11.880 --> 0:14:15.520 Forts were also winners. In the NBA, the Knicks, Nets 0:14:15.520 --> 0:14:19.160 and Warriors lost the Wizards one. In hockey, the Rangers 0:14:19.200 --> 0:14:22.200 and Bruins One Global News twenty four hours a day 0:14:22.240 --> 0:14:25.560 on air and on Bloomberg Quicktake Power by more than 0:14:25.640 --> 0:14:28.640 twenty seven hundred journalists and analyst more than twenty countries. 0:14:29.000 --> 0:14:31.720 Michael mar this is Bloomberg, Nathan. Thanks Michael. It's five 0:14:31.800 --> 0:14:34.920 nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:34.960 --> 0:14:36.960 This is Bloomberg Day Breaking as we get the new 0:14:36.960 --> 0:14:40.000 trading weeks started. We're joined by Lori Calvacina, head of 0:14:40.080 --> 0:14:43.520 US Equity Strategy at RBC Capital Markets. Lori, it's great 0:14:43.520 --> 0:14:45.840 to speak with you. As always, this week is getting 0:14:45.960 --> 0:14:48.880 started with this meeting now under way between Presidents Biden 0:14:48.880 --> 0:14:52.600 and she on the G twenty sidelines. Could this meeting 0:14:52.600 --> 0:14:55.880 between the world's two biggest economic leaders be a catalyst 0:14:55.920 --> 0:14:59.600 for markets? Well, thanks for having me as always. You know, 0:14:59.600 --> 0:15:01.760 I think it depends on what actually ends up coming 0:15:01.840 --> 0:15:04.640 out of the meeting. I think right now, all focus 0:15:04.680 --> 0:15:06.760 is still on the said, We're still digesting a lot 0:15:06.760 --> 0:15:10.040 of earnings reports and of course Russia Ukraine. UM So, 0:15:10.160 --> 0:15:11.880 you know, I think that this is an issue that 0:15:11.960 --> 0:15:15.200 investors are watching, but for now, I think it's probably 0:15:15.200 --> 0:15:17.440 more of a B story than in a story. Okay, well, 0:15:17.480 --> 0:15:20.560 let's look at what could be the potential a story. 0:15:20.600 --> 0:15:23.960 This morning, I got to think that it's the cooler 0:15:24.040 --> 0:15:27.280 that expected inflation print we got that last week, especially 0:15:27.600 --> 0:15:30.120 the rally that it sparked. I wonder what you make 0:15:30.120 --> 0:15:34.440 of that rally and whether it has legs. So, you know, 0:15:34.480 --> 0:15:37.000 it's a great question. You know. I think there was 0:15:37.040 --> 0:15:39.000 a lot that happened last week. It felt like it 0:15:39.040 --> 0:15:41.320 was one of the busiest weeks we've had from major 0:15:41.360 --> 0:15:43.280 news events in quite some time. And I think the 0:15:43.360 --> 0:15:46.280 issue of cooling inflation implications, you know, I think on 0:15:46.400 --> 0:15:48.800 net it's very good for markets. But at the same time, 0:15:48.800 --> 0:15:51.360 I do think this is a complicated story. And one 0:15:51.360 --> 0:15:53.000 of the things we said in our weekly that came 0:15:53.040 --> 0:15:55.200 out this morning, and we wrote this even before you know, 0:15:55.240 --> 0:15:57.880 we saw the news that came out last night on 0:15:58.000 --> 0:15:59.960 from of the new said commentary. But we said, you know, 0:16:00.040 --> 0:16:02.920 we we just expect a return of hawkish rhetoric um 0:16:02.960 --> 0:16:04.720 even if there is more of a more of a 0:16:04.720 --> 0:16:07.160 debate between the hawks and the doves. But we think 0:16:07.160 --> 0:16:09.200 that hawkish rhetoric will serve to keep a little on 0:16:09.240 --> 0:16:11.920 equity prices and can keep conditions volatile for a while. 0:16:12.320 --> 0:16:13.760 So I do think that this was a step in 0:16:13.760 --> 0:16:16.080 the right direction, and the FED narrative and the economic 0:16:16.160 --> 0:16:17.960 narrative just the idea that we can keep this to 0:16:18.000 --> 0:16:20.600 a short, shallow, near term recession as opposed to a longer, 0:16:20.680 --> 0:16:23.160 nastier one that hits later next year. Um, but I 0:16:23.200 --> 0:16:25.360 do think we have to contend with the rhetoric. Yeah, 0:16:25.360 --> 0:16:27.800 we did hear from a FED governor Waller saying that 0:16:27.840 --> 0:16:30.760 it's too soon to think about stopping rate hikes. I 0:16:30.800 --> 0:16:33.160 didn't hear him say that it's too soon to talk 0:16:33.200 --> 0:16:37.920 about slowing rate hikes. What does this inflation print mean 0:16:38.440 --> 0:16:41.960 for the FEDS rate hiking path in your view? So 0:16:42.200 --> 0:16:44.320 in in my in my mind, and you know, really 0:16:44.360 --> 0:16:46.880 thinking about the views of our economists. Um, you know, 0:16:46.920 --> 0:16:49.000 they did sort of raise their estimate on terminal, but 0:16:49.080 --> 0:16:51.520 they also do have a step down baked in. And 0:16:51.560 --> 0:16:53.360 I think that that is, you know, sort of the 0:16:53.480 --> 0:16:55.160 light at the end of the tunnel, so to speak, 0:16:55.200 --> 0:16:57.160 that you know, things are headed in the right direction 0:16:57.200 --> 0:16:59.560 from an equity market perspective. So I still think it's 0:16:59.560 --> 0:17:02.880 good news. We heard from Mike Wilson as well from 0:17:02.920 --> 0:17:05.880 Morgan Stanley. Of course, one of the top rated strategists 0:17:05.880 --> 0:17:08.840 on Wall Street. He's saying that he doesn't think stocks 0:17:08.840 --> 0:17:11.840 are going to really move much in terms of the 0:17:11.920 --> 0:17:15.359 level into next year, maybe going up a bit before 0:17:15.359 --> 0:17:18.560 going or going down bit before going back up. What 0:17:18.720 --> 0:17:21.320 kind of volatility are you looking for in this market 0:17:21.320 --> 0:17:24.480 into next year? So, you know, I probably agree with 0:17:24.600 --> 0:17:26.480 Mice on this to some extent. We've got a forty 0:17:26.480 --> 0:17:28.560 one hundred target bake. Then at the end of next year, 0:17:28.600 --> 0:17:31.000 we've been assuming we'd end this year around thirty eight hundred. 0:17:31.080 --> 0:17:33.480 Of course we're a little bit about that right now. Um, 0:17:33.520 --> 0:17:35.760 But really, one of the things we found that's remarkable 0:17:35.800 --> 0:17:37.560 is that the stock market, if you look at SMP 0:17:37.680 --> 0:17:40.880 five hundred pricing, has been trading in line with two 0:17:40.880 --> 0:17:43.840 thousand twos trading and bast when you saw January peak, 0:17:43.880 --> 0:17:47.919 summer low, big October low, you rallied pretty seriercely into Thanksgiving, 0:17:47.920 --> 0:17:49.560 and then you turned around and gave it all back 0:17:49.560 --> 0:17:52.720 and retested the October low the following March. And when 0:17:52.720 --> 0:17:54.719 I think about the earning stock drop, I think that 0:17:54.720 --> 0:17:56.720 that is a reasonable way to think about how this 0:17:56.880 --> 0:18:00.000 path may unfold, simply because we've done some work in terms, 0:18:00.080 --> 0:18:03.200 just softening EPs expectations for next year, but we still 0:18:03.240 --> 0:18:05.000 have a lot of work to do to get those 0:18:05.080 --> 0:18:06.399 right sides, and I think you're not going to do 0:18:06.440 --> 0:18:10.240 that until March. It's possible for equities to bottom well 0:18:10.280 --> 0:18:14.240 in advance of earnings revisions, stopping their downward aisen. In fact, 0:18:14.280 --> 0:18:16.560 that's usually what happens. But at the same time, we 0:18:16.600 --> 0:18:19.120 do think investors need certainty on the e to really 0:18:19.160 --> 0:18:22.080 understand where pees are and to feel comfortable stepping in. 0:18:22.240 --> 0:18:23.919 So I would say buckle up. I think it's going 0:18:23.960 --> 0:18:26.520 to be challenging. Yeah, And I know also you've been 0:18:27.040 --> 0:18:29.680 thinking a lot about what the impact of the mid 0:18:29.760 --> 0:18:31.960 term elections is going to be for several weeks. Even 0:18:32.000 --> 0:18:35.280 into these mid terms, given that we still don't have 0:18:35.480 --> 0:18:38.560 a firm idea of how the majorities are going to 0:18:38.640 --> 0:18:42.439 shake out next year, is there more pricing for in 0:18:42.520 --> 0:18:45.600 terms of politics for this market. So I think there 0:18:45.600 --> 0:18:47.320 could be. I think that if we end up with 0:18:47.359 --> 0:18:49.639 a narrow house majority, you know, to be honest, I 0:18:49.640 --> 0:18:51.719 think that is largely big don at this point, and 0:18:51.760 --> 0:18:54.080 we thought that equities a lot of that move off 0:18:54.080 --> 0:18:56.280 the October low was driven by the improvement in the 0:18:56.320 --> 0:18:59.920 polling data and the betting market data for Republicans. Republicans 0:19:00.000 --> 0:19:03.280 a disappoint expectations, So I think that can potentially damp 0:19:03.280 --> 0:19:06.040 in some of the enthusiasm for the race. I don't 0:19:06.040 --> 0:19:07.399 know if that's the right way to think about it, 0:19:07.440 --> 0:19:09.200 but I think that's how people feel at the moment 0:19:09.200 --> 0:19:12.040 based on my conversations. UM, I think if the House 0:19:12.160 --> 0:19:14.360 ends up not going to the Republican because I think 0:19:14.359 --> 0:19:17.040 that's a negative market event, you know. For now, I 0:19:17.080 --> 0:19:19.480 know one of your competitors I've used outlets is still 0:19:19.520 --> 0:19:23.320 projecting that the Republicans will take that narrowly. So you know, 0:19:23.440 --> 0:19:25.520 I see if downside if that doesn't pan out, But 0:19:25.600 --> 0:19:27.879 I think the upside based on the election itself is 0:19:27.880 --> 0:19:30.240 pretty limited, you know, if if the Republicans have that 0:19:30.359 --> 0:19:33.359 narrow majority. Thanks as always, Lorie, good talking with you 0:19:33.400 --> 0:19:36.800 this morning. Lorie Calvacina, head of US Equity Strategy at 0:19:36.920 --> 0:19:40.960 RBC Capital Markets, And right now, futures are pointing to 0:19:41.040 --> 0:19:43.880 a modestly lower open, with SMP futures right now down 0:19:43.960 --> 0:19:47.600 sixteen points, Stown futures down ninety six. Nasdaq futures are 0:19:47.640 --> 0:19:51.320 lower by seventy nine points. Ten Your Treasuries down seventeen 0:19:51.359 --> 0:19:53.920 thirty seconds, the yield at three point eight seven percent, 0:19:53.960 --> 0:19:56.159 a gain of about six basis points yield on the 0:19:56.200 --> 0:19:59.600 two year four point three six just at shy of 0:19:59.680 --> 0:20:07.840 four point three seven. You're listening to Bloomberg Daybreak. Bloomberg 0:20:07.880 --> 0:20:10.240 day Break is brought to you by Peepack Private Wealth Management. 0:20:10.280 --> 0:20:13.120 Peapack Private Wealth Management knows that the portfolio is more 0:20:13.160 --> 0:20:15.280 than a collection of assets. It's a path to your 0:20:15.320 --> 0:20:17.800 future because at Pepack Private dot Com. And begin your 0:20:17.840 --> 0:20:25.560 financial legacy today. Broadcasting live from the Bloomberg Interactive Broker 0:20:25.680 --> 0:20:29.080 Studio in New York, Bloomberg ev In Freedom to Washington, 0:20:29.160 --> 0:20:32.600 d C, Bloomberg nine one to Boston, Bloomberg one O 0:20:32.800 --> 0:20:36.280 six one to San Francisco, Bloomberg sixty to the country, 0:20:36.359 --> 0:20:39.000 Sirius XM to the one nine team, and around the 0:20:39.000 --> 0:20:42.840 globe the Bloomberg Business apt and Bloomberg Radio dot Com. 0:20:42.880 --> 0:20:51.919 This is Bloomberg Daybreak and it's Final thirty on Wall Street. 0:20:51.960 --> 0:20:55.439 Good morning. I'm Karen Moscow, I'm Nathan Hager. Bloomberg Daybreak 0:20:55.520 --> 0:20:58.400