Speaker 1: Live from the Bloomberg Interact at Brooker Studios. This is
Speaker 1: Bloomberg day Break for Thursday, October twenty seven two. Coming
Speaker 1: up this hour, shares of Metap plunge on another big
Speaker 1: tech earnings disappointment. Apple and Amazon are up next. Set
Speaker 1: to report this afternoon. Credit Sweet sunveils a massive overhaul.
Speaker 1: We speak to the Bank CEO, and the European Central
Speaker 1: Bank is set to raise rates to the highest level
Speaker 1: in more than a decade. New Jersey Senator Menendez faces
Speaker 1: another federal investigation. Plus President Biden ones Russia any nuclear
Speaker 1: attack but being an incredibly serious mistake. I'm Michael bar More. Ahead,
Speaker 1: I've done Statshowering sports overtime at the Garden, the Nix
Speaker 1: speech Charlotte, the Nets lost in Milwaukee, the Islanders shut
Speaker 1: out the Rangers. That's all's training. Ahead on Bloomberg day
Speaker 1: Break on Bloomberg Elving Free on New York, Bloomberg nine one,
Speaker 1: Washington d C, Bloomberg one oh six one, Boston, Bloomberg
Speaker 1: nine sixties and Francisco Sirius x M one nineteen and
Speaker 1: around the world. Old on Bloomberg Radio dot Com and
Speaker 1: via the Bloomberg Business app. Good morning, I'm Nathan Hagar
Speaker 1: and I'm Karen Moscow. SMP future is little change this morning,
Speaker 1: while Nowsdack future is fall where coming up to six
Speaker 1: oh one on Wall Street. We check the markets every
Speaker 1: fifteen minutes throughout the trading day. On Bloomberg. Right now again,
Speaker 1: SMP futures are a little change down futures have one one,
Speaker 1: while Nastack futures are down fifty one. The decks in
Speaker 1: Germany's down about six tenths of uppercent ten year treasury
Speaker 1: down thirteen thirty seconds, yield four point oh five percent
Speaker 1: in the yield on the two year four point four
Speaker 1: three percent. Nathan, Karen, we begin with another tech earnings
Speaker 1: disappointment to day after Microsoft and Google shares plunge. We're
Speaker 1: watching shares of meta platforms faullent. This morning, the Facebook
Speaker 1: owner gave a revenue forecast on the low end of estimates.
Speaker 1: We get more from Bloomberg, said Ludlow in our nine
Speaker 1: sixty news room in San Francisco. What spooked investors, at
Speaker 1: least in the first instance, was the tepid forecast met
Speaker 1: a gay for sales in the current period. Revenue will
Speaker 1: be between ty and thirty two point five billion dollars
Speaker 1: in the final three months of this year, below street expectations.
Speaker 1: And the story is when we know the softening ad
Speaker 1: market is hurting Meta. We went into this knowing that
Speaker 1: would be the case, but as the cool started and
Speaker 1: went on, it became clear that actually what spooking investors
Speaker 1: is Meta and Zuckerberg's commitment to fuel and fund this
Speaker 1: transition to the metaverse. Zuckerberg said that actually, on a
Speaker 1: year on year basis, Meta reality labs would continue to
Speaker 1: have growing losses above lowth For Bloomberg News in San Francisco,
Speaker 1: great things and big keek Ernie's continue today. We have
Speaker 1: a pair of giants reporting this afternoon, and Bloomberg's Jeff
Speaker 1: Bellinger has more. Apple and Amazon are both scheduled to
Speaker 1: report after the market's closed today. Analysts went Bush Securities
Speaker 1: say higher iPhone prices and an improving supply chain may
Speaker 1: have helped Apple beat revenue forecast. The Ease Securities says
Speaker 1: Amazon likely posted faster revenue growth for online stores and
Speaker 1: third party solers, but both companies face headwinds. Ample is
Speaker 1: dealing with the stronger dollar and weakness in China, and
Speaker 1: a whole hume Second Prime Day event at Amazon suggested
Speaker 1: more spending is going offline. Jeff Belinger Bloom Bird Day
Speaker 1: break alright, Jeff, thanks back to the market now. Futures
Speaker 1: are mixed ahead of those earnings and despite disappointing results
Speaker 1: from Meta. Morgan Stanley's Mike Wilson is a well known
Speaker 1: stock market skeptic who correctly predicted this year's slump. Now
Speaker 1: he thinks the bear market in US equities could conclude
Speaker 1: sooner than any think. Ultimately, the bear market will be over,
Speaker 1: probably some time in the first quarter. Now, all this
Speaker 1: is you know, subject to revision, right, So I want
Speaker 1: to make it perfectly clear. If the market starts to
Speaker 1: trade off again and the SMP breaks down and blows
Speaker 1: through thirty six fifty on the down side, will be
Speaker 1: bears again. Morgan Stanley's Mike Wilson was ranked the number
Speaker 1: one portfolio strategist in the latest Institutional Investor survey. Well
Speaker 1: in Europe, nathan A Bank and turmoil is front and center.
Speaker 1: This morning. Shares our credit suites are down almost eleven
Speaker 1: percent after posting its fourth straight quarterly lost. The Swiss
Speaker 1: Bank is unveiling a massive turnaround plan which includes a
Speaker 1: four billion dollar capital raise, a curve out of its
Speaker 1: investment bank, and thousands of job cuts. It's the most
Speaker 1: urgent attempting yet to repair credit sweezed after huge losses
Speaker 1: and management chaos. We spoke this morning with CEO Alrick Kerner.
Speaker 1: What is the new Credits fiz. You know, it's a
Speaker 1: much simpler, more stable, much more focused bank going forward
Speaker 1: which will deliver sustainably profitable results to our shareholders. Credits Free.
Speaker 1: CEO Alreck Kerner may have a come as in an
Speaker 1: interview with Bloomberg's Francy Lagoise. Stay tuned for more in
Speaker 1: that conversation coming up shortly on Bloomberg daybreak. Staying in Europe, Karen,
Speaker 1: it is a big day for the European Central Bank.
Speaker 1: The e c V is expected to lift its main
Speaker 1: interest straight to the highest level in more than a decade.
Speaker 1: We get a preview from Bloomberg's leand Garns. A seventy
Speaker 1: five basis point hike is a consensus view for today's
Speaker 1: policy decision from the e c B. Anything else would
Speaker 1: be a big surprise, so looking past the recession fears
Speaker 1: to keep a targeting inflation. Less clear though, is whether
Speaker 1: we'll get any indications around a timeline for quantitative tightening
Speaker 1: and something investors are watching closely. Any moves to limit
Speaker 1: the gains banks on making from the ECB's crisis program
Speaker 1: of cheap loans in London. I'm Leanne Geron's Bloomboat Daybreak
Speaker 1: lean thanks Becker. In the US, economic growth isn't focused.
Speaker 1: The government issues data on third quarter GDP this morning
Speaker 1: forecast call for again at two point four percent, and
Speaker 1: Bloomberg's Vinydale Judais has more GDP posted back to back
Speaker 1: losses in the first and second quarters. Bloomberg Economics says
Speaker 1: the third quarters headline rebound may conceal trouble in the
Speaker 1: details such as sales and business inventorys. There are other
Speaker 1: U s data on tap today. Manufacturing data factory owners
Speaker 1: for durable goods may indicate moderation reflecting US inflation fears
Speaker 1: in the US labor market. Bloomberg Economics as weekly jobless
Speaker 1: will probably continue to cover around historic close the Bloomberg
Speaker 1: day Break. Okay, Vinny, thank you. Let's turn to geopolitics
Speaker 1: now and the potential setback for President Biden's economic pressure
Speaker 1: on Russia. The administration is now being forced to rework
Speaker 1: its plans for price caps on Russian oil, Bloomberg said,
Speaker 1: Baxter has the story. It looks like they're going to
Speaker 1: have to scale back their plans and light of the
Speaker 1: volatility in the markets. Instead of strangling the Kremlin's oil
Speaker 1: revenues by imposing a strict lid on prices, US and
Speaker 1: European Union are likely to have to settle for more
Speaker 1: loosely police cap at a higher price than once in vision.
Speaker 1: An earlier iteration of the plan had the cap and
Speaker 1: the range of forty to sixty dollars per barrel, but
Speaker 1: now it looks like it will have to be much higher.
Speaker 1: In San Francisco, I'm at Baxter Bloomberg Daybreak and thanks. Finally,
Speaker 1: the world's richest man is telling Twitter employees he does
Speaker 1: not plan to cut of staff. Bloomberg News has learned
Speaker 1: that Elon Musk denied those numbers and an address to
Speaker 1: workers at the company's San Francisco office. Still, the billionaires
Speaker 1: still expect you to cut some staff when he takes
Speaker 1: over the company. The four billion dollar deal is expected
Speaker 1: to close tomorrow. Yeah. Bloomberg day Break is brought to
Speaker 1: you by Sei, built on advanced technologies and fifty years
Speaker 1: of Innovation. SEI offers asset managers a comprehensive and flexible
Speaker 1: operations outsourcing platform. Go to se i C dot com
Speaker 1: slash managers. This is Bloomberg and it is now six
Speaker 1: oh seven on Wall Street. It's fifty seven degrees in
Speaker 1: Central Park. So got that overturn tractor trailer in Rockaway
Speaker 1: westbound Route eighty. We'll tell you more in traffic First,
Speaker 1: Michael Barr is here with what else is going on
Speaker 1: in New York and around the world. Michael, thank you
Speaker 1: very much. Nathan, New Jersey Democratic Senator Robert Menendez faces
Speaker 1: another federal investigation about five years after a trial on
Speaker 1: federal corruption charges ended in a mistrial. A Menendez advisor
Speaker 1: says Senator Menendez is aware of an investigation, However, he
Speaker 1: does not know the scope of the investigation. The probe
Speaker 1: is being conducted by federal prosecutors in the Southern District
Speaker 1: of New York. President Biden warned Russia's of Vladimir Putin
Speaker 1: that any use of a nuclear weapon would be an
Speaker 1: incredibly serious mistake. It comes as Russia says it carried
Speaker 1: out military exercises simulating a retaliatory nuclear strike. Meanwhile, former
Speaker 1: U s Special Representative for Ukraine negotiations and former ambassador
Speaker 1: to NATO Kurt Volker talked about Russia's claims without evidence
Speaker 1: that Kiev's forces intend to use a so called dirty bomb.
Speaker 1: But what Putin is doing is he is trying to
Speaker 1: get inside the heads of leaders in the West to
Speaker 1: make them feel that this is too dangerous and we
Speaker 1: have to tell the Ukrainians to surrender somehow, give up territory,
Speaker 1: you know, concede to putin something. Former NATO ambassador Kurt
Speaker 1: Volkers spoke on sound on which airs at five pm
Speaker 1: on Bloomberg. Iranian security forces opened fire on protesters in
Speaker 1: the past forty days. Thousands of people have taken to
Speaker 1: the streets to denounce the depth of a twenty two
Speaker 1: year old woman in custody of the country's morality police.
Speaker 1: She was accused of breaking iron strict dress code. State
Speaker 1: Department spokesperson Dant Patel reiterated u S efforts to support
Speaker 1: protesters in more than a hundred cities in Iran. The
Speaker 1: regime's ongowing violent crackdown, pervasive surveillance of citizens and disruption
Speaker 1: of communications are the latest reminder of the Islamic Republic's
Speaker 1: flavorance disregard for the fundamental freedoms and human rights of
Speaker 1: her audience. Spokesman Patel says Iran's leadership is facing a
Speaker 1: problem of its own making. With just weeks until the
Speaker 1: midterm elections, a second woman has come forward claiming that
Speaker 1: she got pregnant and then had an abortion paid for
Speaker 1: by Georgia GOP senate candidate Herschel Walker. Walker addressed Jane
Speaker 1: Doe's allegations during a campaign event, saying he is done
Speaker 1: with his foolishness and denied the allegations. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than seven under journalists analyst more than
Speaker 1: twenty countries. I'm Michael Barr and this is Bloomberg Nathan,
Speaker 1: Thanks Michael. Almost six ten on All Street Time with
Speaker 1: the Bloomberg Sports Update. Bryant you by tri stayed out.
Speaker 1: He with John Stah all right, Nathan and Knicks back
Speaker 1: this season with pretty much the same roster, with one
Speaker 1: exception the edition of Jalen Brunts in the new Knick
Speaker 1: point guard on display at the guard and twenty seven
Speaker 1: points third seen assists seven rebounds. Knick speech Charlotte one one,
Speaker 1: thirty one and overtime. They're up to a three and
Speaker 1: one start. Worth noting they began last season five and
Speaker 1: one and still ended up with down here missing the playoffs.
Speaker 1: And that's just one in three. Lost in Milwaukee one
Speaker 1: ten to ninety nine. Too much Jannis done to the
Speaker 1: compo forty three points. Kevin Duran had thirty three. Steve
Speaker 1: Nash got objected the first time his coaching career. Lebron
Speaker 1: James had not started the season oh and four since
Speaker 1: his rookie year in Cleveland twenty years ago. The Lakers
Speaker 1: are owing four. They lost in Denver. Rangers started three
Speaker 1: and one. They've lost their last four. They've score only
Speaker 1: five goals over those four games. Shut out at the
Speaker 1: ES Arena by the Islanders. Zelia Surokan, Kyle Palm Mary
Speaker 1: scored twice the Isles one three nothing. Week eight starts
Speaker 1: tonight at Tampa Bay, where Tom Brady the Bucks just
Speaker 1: three and four. They take on Baltimore Giants. Look for
Speaker 1: US seven and one start Sunday in Seattle. A lot
Speaker 1: of reasons for the Giants improvement, but one certainly Daniel Jones,
Speaker 1: having thrown only two in their steps. We're trying to
Speaker 1: make quicker decisions, trying to get the ball out my
Speaker 1: hands as as soon as possible. I don't think that's
Speaker 1: any different from things I've done in the past. I
Speaker 1: think you know, you're you're better at it every week
Speaker 1: and and I'm certainly better at it and I've been
Speaker 1: in the past. So uh, that's the goal for me,
Speaker 1: is that can continue to be quicker and and uh
Speaker 1: make the right decision get the ball in the hand.
Speaker 1: Jones was just named NFC Offensive Player of the Week.
Speaker 1: How Steinbrenner's first comment since the end of the season,
Speaker 1: the Yankees owner said he doesn't see the Yanks not
Speaker 1: keeping manager Aaron Boom John stas Sports Thanks john SMP
Speaker 1: futures up three point, staff features up a hundred nine,
Speaker 1: nastac features lower by forty three points. Meta platform shares
Speaker 1: down almost twenty points. We'll talk about the numbers with
Speaker 1: Alex Webb of Bloomberg. Quick Take. This is Bloomberg and
Speaker 1: the Bloomberg Sports Report was brought to you by Audie.
Speaker 1: Don't let someone else drive off in the autie model.
Speaker 1: You've always wanted to visit your local Tri state autie
Speaker 1: dealer to get behind the wheel of yours today, or
Speaker 1: visit autie Offers dot com for more information, markets, headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot com. The Bloomberg Business Outland at Bloomberg Quick Tape
Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. NASDACK
Speaker 1: futures lower this morning as Meta Platforms drops almost twenty
Speaker 1: percent in early trading after reporting earnings. NASDAG futures are
Speaker 1: down forty two points s and P futures they're little changed.
Speaker 1: DAL future is up one six and the decks in
Speaker 1: Germany's down seven tenths of a percent. Ten year treasury
Speaker 1: down fourteen thirty seconds, held four point six percent yield
Speaker 1: up a two year four point for a three percent
Speaker 1: Nimex fruit oil is up a tenth of upper sent
Speaker 1: now of eighth cents at eighty seven dollars ninety nine cents,
Speaker 1: and Barrel Kovec called up two tenths per cent or
Speaker 1: three dollars at sixty and sixty six twenty announced and
Speaker 1: the euro is at one point zero zero four three
Speaker 1: against the dollar. That's a Bloomberg Business Flying show. Here's
Speaker 1: Michael Barr with more on what's going on around the world,
Speaker 1: Michael Karen, thank you very much. Russia carried out military
Speaker 1: exercises simulating a retaliatory nuclear strike, as President Joe Biden
Speaker 1: warned Vladimir Putin that any use of a nuclear weapon
Speaker 1: would be an incredibly serious mistake. Secretary of State Anthony
Speaker 1: Blincoln accused China of undermining the decades long status quo
Speaker 1: that has kept both nations from going to war over Taiwan,
Speaker 1: saying Beijing was trying to speed up at seizure of
Speaker 1: the island. A second woman has come forward claiming Georgia
Speaker 1: Senate candidate Herschel Walker paid for her to have an aborship.
Speaker 1: Walker denied the allegations, saying I am done with this foolishness.
Speaker 1: In the end, YEA the next one. In overtime over
Speaker 1: the Hornets on one, the Net's lost in hockey, The
Speaker 1: Islanders blanked Rangers. Three Zip Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than under journalists and lest more than twenty countries.
Speaker 1: Michael Barr and this is Bloomberg. Thanks Michael. Six nineteen
Speaker 1: Now on Wall Street Live from the Bloomberg Interactive Brokers Studios.
Speaker 1: This is Bloomberg Daybreak as we continue to keep our
Speaker 1: focus on meta platforms. The latest big tech company to
Speaker 1: report earnings, and the shares this morning are down nearly twenty.
Speaker 1: It's a disappointing revenue forecast and the prospect for soaring
Speaker 1: costs as the CEO Mark Zuckerberg continues his pivot away
Speaker 1: from Facebook to the metaverse. Let's bring back Bloomberg Quick
Speaker 1: Take correspondent Alex Webb for more on this. And it
Speaker 1: really is a cost story, isn't it. Alex. Yes, we
Speaker 1: knew that the revenue was not was going to decline.
Speaker 1: It actually beat analyst expectations. The shock was really on
Speaker 1: the bottom line, where on most of the profit measures
Speaker 1: itself short of expectations, and that clearly reflects the the
Speaker 1: capital that Facebook is now spending on new products that is,
Speaker 1: of course metaverse hardware and software, but it's also like
Speaker 1: efforts defend off TikTok, which is, you know, tearing into
Speaker 1: its core market of uh online ads, particularly online ads
Speaker 1: that target that lucative eighteen to thirty five year old demographics.
Speaker 1: And we're seeing the difficulty that not just Facebook, but
Speaker 1: a lot of other social media companies are finding now
Speaker 1: getting that ad revenue in this difficult economic environment, and
Speaker 1: that's supposed to be the underpinning for Zuckerberg's plans to
Speaker 1: build out the metaverse. I mean, what's the challenge going forward?
Speaker 1: The challenging basis is using the capital to invest in
Speaker 1: something which he can convince investors is going to the
Speaker 1: live a growth ultimately and then really delivering that growth
Speaker 1: in order for the product to be appealing, and not
Speaker 1: only has to be good technologically, but it needs to
Speaker 1: be a platform. It needs to be a gateway into
Speaker 1: loads of other fun, interesting experiences, and those experiences only
Speaker 1: really come about if you've got a rich uh community
Speaker 1: of developers and companies building products for your platform. That's
Speaker 1: what Apple has um for um iOS, That's what Google
Speaker 1: has for Android, and Apple has been laying the groundwork
Speaker 1: for whatever it's augmented virtual reality product ends up looking
Speaker 1: like for several years, so maybe five or six years,
Speaker 1: where you can do augmented reality things on a fairly
Speaker 1: rudimentary level. You can do augmented reality things with your iPhone.
Speaker 1: The some of those products will then presumably be reported
Speaker 1: into that new product that Apple will envailed, perhaps as
Speaker 1: soon as next years. Facebook doesn't have those millions of developers.
Speaker 1: So even if It's products is blockbuster when you know,
Speaker 1: really matures, unless it has all of those opportunities within
Speaker 1: its platform, it'll struggle to compete. Well, if we do,
Speaker 1: I see Apple and more of a solid footing. Could
Speaker 1: that mode well for the earnings that Apple reports after
Speaker 1: the bell today? I think probably, given the cadence of
Speaker 1: negative news that we've had from earning seasons so far,
Speaker 1: expectations probably not all that high for Apple. We already
Speaker 1: have reporting from our colleagues Mark German and Debbie Woo
Speaker 1: about the number of iPhones they had planned to produce
Speaker 1: in this quarter that they and that some of those
Speaker 1: have maybe been tamped back a little bit already, so
Speaker 1: we have some signals about how well it's going to do.
Speaker 1: You know, Apple has managed to build a pretty resilient
Speaker 1: business by beefing up its services offering that includes things
Speaker 1: like iCloud, the app store, Apple Music, Apple TV, plus
Speaker 1: all those sort of products. And the net effect of
Speaker 1: those is that it blues people more tightly to their iPhones,
Speaker 1: and so it makes it way harder to say, actually,
Speaker 1: I'm going to scrap my iPhone and go to Android
Speaker 1: because you've invested so heavily in ecosystem and that means
Speaker 1: that even in these sort of climates where it can
Speaker 1: be harder to sell the products, Apple manages it to
Speaker 1: kind of do pretty well. So the optimism around Apple
Speaker 1: is perhaps a little bit brighter happening recent weeks. Yeah,
Speaker 1: we heard as well that Apple is going to be
Speaker 1: raising prices on some of those services that so many
Speaker 1: of those customers are glued to. We'll get those official numbers,
Speaker 1: as I say, after the bell later this afternoon. Alex
Speaker 1: Webb of Bloomberg Quicktake. As always, thanks for the double
Speaker 1: duty this morning on Bloomberg Daybreak and once again checking
Speaker 1: shares of meta platforms in the pre market. Karen, they
Speaker 1: are down nineteen and a half percent. Well, Nathan, it
Speaker 1: is on Wall Street and now we're going to bring
Speaker 1: you back to our interview with credits Sweet CEO Ulray Kerner,
Speaker 1: the banks unveiled a plan that includes a multibillion dollar
Speaker 1: capital raised, massive job cuts, had a carve out of
Speaker 1: the investment bag. CEO Ulrich kurr R talked about the
Speaker 1: three year restructuring plan with the Bloomberg's Francy in laqua.
Speaker 1: This is, as you say, a big day. We are
Speaker 1: all there, that we are there, it's a big day
Speaker 1: also for all our people when we're announcing now today
Speaker 1: what is basically new credits with and what is new
Speaker 1: credits wizz You know, it's a much simpler, more stable,
Speaker 1: much more focused bank going forward which will deliver sustainably
Speaker 1: profitable results to our shareholders. And what is very important
Speaker 1: if we'm at here, how we how we came here,
Speaker 1: so to say, we take a very hard look, you know,
Speaker 1: at the needs of our clients and designed everything around
Speaker 1: the needs of our clients. So what was your overarching theme?
Speaker 1: How did you come up with this plan? What was
Speaker 1: your reasoning and getting here? Many different reasons. I think
Speaker 1: the as I said, the bank is slightly too complicated
Speaker 1: it today the bank has parts which are not profitable enough,
Speaker 1: as we all know from the share the perspective, and
Speaker 1: that's why we came up with, you know, the need
Speaker 1: of taking very decisive affections in mainly three different areas.
Speaker 1: The one is radical restructuring off the investment bank. The
Speaker 1: second one is significant reducing costs going forward as you
Speaker 1: have seen, and the third one it is time for
Speaker 1: the five things that you need to notice start your day.
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Speaker 1: Interactive Brokers dot com up first. Shares of Meta Platforms
Speaker 1: are down about nineteen and a half percent in early
Speaker 1: trading after the company gave a disappointing outlook. It also
Speaker 1: revealed ballooning costs to fund its virtual reality project, the Metaverse.
Speaker 1: CEO Mark Zuckerberg pleaded patients on a call with investors,
Speaker 1: I think we're going to resolve each of these things
Speaker 1: over a different parents of time, and I appreciate the
Speaker 1: patients and I think that those were patient and invest
Speaker 1: with us to end up being rewarded. Mark Zuckerberg says
Speaker 1: Meta's long term bets will pay off, but did not
Speaker 1: explain further ill Sticking with big tech, Karen, we get
Speaker 1: two massive earnings reports after the bell today when Apple
Speaker 1: and Amazon report. Looking at Twitter, Bloomberg News has learned
Speaker 1: Testas CEO Elon Moscow, set to take over the company tomorrow,
Speaker 1: told employees. He does not plan to cut seventy of them,
Speaker 1: as previously reported. Bloomberg's at Ludlow has more it didn't
Speaker 1: explicitly rule out layoffs. Generally speaking, Um, he walked in
Speaker 1: the Market Street office carrying a kitchen sinter there, and
Speaker 1: I think that the joke was, this is really happening.
Speaker 1: We should all let that same time, Bloomberg's aid Ludlow
Speaker 1: says Elon Musk will meet with staff tomorrow, when his
Speaker 1: forty four billion dollar deal to buy Twitter is set
Speaker 1: to close. Nathan turning to the markets this morning, US
Speaker 1: futures are mixed as earning season continues. Notorious bear Mike
Speaker 1: Wilson says his team at Morgan Stanley believes the downward
Speaker 1: trend in US equities may include soon. We're still bearish
Speaker 1: in the intermediate term. We don't think the bear markets over,
Speaker 1: but we do think this Tactico rally is going to
Speaker 1: be big enough to try and pivot and trade it.
Speaker 1: Morgan Stanley Chief equity strategist Mike Wilson says that outlook
Speaker 1: could still change. Traders will also be watching economic data today.
Speaker 1: We get are reading on third quarter US g d
Speaker 1: P at eight thirty am well straight time over in Europe,
Speaker 1: Karen banks are in focus, with Credit Suits down twelve
Speaker 1: percent after posting its fourth straight quarterly loss. The bank
Speaker 1: also unveiled a massive turnaround plan that includes a multibillion
Speaker 1: dollar capital raise, a carve out of its investment bank,
Speaker 1: and massive job cuts. CEO Rick Kerner spoke with us
Speaker 1: about the plans. We want to go through the transformation
Speaker 1: of the next three years with a very very strong
Speaker 1: capital base. It will become profited with definitely from twenty
Speaker 1: four onwards. CEO Rick Kerner says Credit Suits does plan
Speaker 1: to be profitable again starting and we are watching earnings
Speaker 1: cross the Bloomberg. Right now, we are hearing from Caterpillar.
Speaker 1: It reported a third quarter profit beat analysts estimates. Southwest
Speaker 1: also reporting its profit, beating analysts estimates as well. In
Speaker 1: the third quarter. MERC also beast beating analysts estimates, and
Speaker 1: it boosted its sales forecast for the fiscal year. Taking
Speaker 1: a look at futures this morning, right now, S and
Speaker 1: P futures are of about three points and now futures
Speaker 1: of one thirty two and NASDAG futures are down forty
Speaker 1: three and that's the five things that you need to
Speaker 1: know to start your day. Brought to you by Interactor
Speaker 1: Brokers and straight Ahead. Your latest local headlines, plus a
Speaker 1: check of sports and this is Bloomberg. Thank you. Karen
Speaker 1: sixe on Wall Street fifty seven degrees in Central Park.
Speaker 1: Still got that overturned tractor trailer westbound eight in Rockaway.
Speaker 1: Michael Barr is still here too. One on what's going
Speaker 1: on in New York and around the world. Good morning,
Speaker 1: like all, Good morning Nathan. Democratic Senator Bob and Ndez
Speaker 1: of New Jersey, who avoided conviction on corruption charges five
Speaker 1: years ago, is reportedly the subject of a new federal instication.
Speaker 1: An adviser for the senator, Michael Suliman, says Senator Menendez
Speaker 1: is aware of an investigation and whever he does not
Speaker 1: know the scope of the investigation. No word on what
Speaker 1: sort of alleged wrong doing was involved. Russia carried out
Speaker 1: military exercises simulating a retaliatory nuclear strike, as President Joe
Speaker 1: Biden warned Vladimir Putin that any use of a nuclear
Speaker 1: weapon would be an incredibly serious mistake. Echoing Biden's warning
Speaker 1: of grave consequences, Secretary of State Anthony Blincoln spoke in
Speaker 1: an interview with Bloomberg. We haven't seen reason to change
Speaker 1: our own nuclear posture, but it's something that we're tracking
Speaker 1: very carefully. And we've also uh communicated directly and very
Speaker 1: clearly to h to the Russians, to President Putin about
Speaker 1: the consequences that would fall from any use of a
Speaker 1: nuclear device. The Pentagon says the US had been notified
Speaker 1: that Russia would conduct the exercise and compliance with arms
Speaker 1: control obligations. New York City is expected to make a
Speaker 1: historic appointment this morning. Laura Keimeno will be the first
Speaker 1: woman f d n Y commissioner. Kevanaugh, who was the
Speaker 1: second in command, has been acting commissioners since Daniel nigros
Speaker 1: retirement in February. New York City will slash the number
Speaker 1: of middle schools that rely on competitive admission criteria known
Speaker 1: as screens, by nearly seventy in the coming academic year,
Speaker 1: and increased the use of lotteries. According to the New
Speaker 1: York City Department of Education, the number of screened middle
Speaker 1: schools will decrease to fifty nine from one. School Chancellor
Speaker 1: David Banks called it a simpler and favor process. This
Speaker 1: is all alive. That's the response from the US Senate
Speaker 1: candidate Herschel Walker to a second accusation from a former
Speaker 1: girlfriend who says Walker paid for her to get an abortion.
Speaker 1: Walker appearing at the campaign stop and Dillard George had
Speaker 1: dismissed the matter as nothing more than a stunt brought
Speaker 1: on by his political opponents. They got crushed at the debate.
Speaker 1: Now the Democrats are doing say whatever they can. The
Speaker 1: wind is five, wind is the seen. But I'll then
Speaker 1: to know they don't know Hershel Walker Walker at and
Speaker 1: I'm done with this foolishness. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quick Take, powered
Speaker 1: by more than twenty seven hundred journalists analysts more than
Speaker 1: a hundred twenty countries. Michael Barr, this is Bloomberg. Nathan,
Speaker 1: Thanks Michael. Six thirty six on Wall Street Time with
Speaker 1: the Bloomberg Sports Undate, brought to you by Try stayed
Speaker 1: out here with John stash Our. All right, Nathan Nixt
Speaker 1: who began their seasonal and overtime loss, had themselves an
Speaker 1: overtime win at the Guard against Charlotte Knicks, led by
Speaker 1: twelve and then trailed by five and just over two
Speaker 1: minutes left. Janlon Brunson big three point and o t
Speaker 1: and the Nicks one one thirty four, one thirty one.
Speaker 1: Big night for Brunts in the new point guard scored
Speaker 1: twenty seventy at thirteen assists, seven REBA. When we're not
Speaker 1: playing our best and when we give up leads, how
Speaker 1: can we respond? And those are signs of good teams
Speaker 1: that we can do it consistently. I think we're gonna
Speaker 1: pren our southen position where you can be the best
Speaker 1: team we can be. But um, this is a good
Speaker 1: step for us. We definitely gotta continue a better but
Speaker 1: this is this is a good step after three home wins.
Speaker 1: It'll be tougher for the next tomorrow in Milwaukee, Bucks
Speaker 1: or three. You know, they just beat the Nets one
Speaker 1: ten to ninety nine. Nets had a big second quarter.
Speaker 1: They were up twelve with a half man outscored second
Speaker 1: half sixty seven to forty four. The second half is
Speaker 1: where Jana sent At the compos scored thirty four of
Speaker 1: his forty three points. The U bas Arena Islanders shut
Speaker 1: out the slumping Rangers three nothing, forty one saves for
Speaker 1: Ilias Sirokan. Kyle Palmary scored twice. Rangers have scored only
Speaker 1: five goals in their last four games. NFL Tonight, Baltimore
Speaker 1: at slumping Tampa Bay Bucks just three and four. Tom
Speaker 1: Brady hasn't had erected like that since forty years ago.
Speaker 1: In New England's baking of the Patriots, They've visited the
Speaker 1: Jets Sunday. The Pats have won the last twelve meetings
Speaker 1: and Mac Jones will reportedly be their starting QB despite
Speaker 1: getting bench the other night, the Giants Sunday in Seattle,
Speaker 1: Giants has had two starting offensive linemen suffered knee injuries,
Speaker 1: but Nick Gates has been act Evadi how sins Week
Speaker 1: two last season when Gates suffered a gruesome leg injury
Speaker 1: that needed seven surgery. But I'm stay Actually were Bloomberg Sports,
Speaker 1: Thanks John sixty seven on Wall Street Time to take
Speaker 1: a look at stock some of the names moving in
Speaker 1: the pre market, Bloomberg radio and TV markets corresponding creating
Speaker 1: gout is watching earnings crossed the Bloomberg just this morning.
Speaker 1: But Meta Platforms is still overshadowing everything Creating. Oh absolutely,
Speaker 1: it is taking the cake in terms of simply the
Speaker 1: the story to know. Meta Platforms M E. T. A
Speaker 1: is your taker formally known as Facebook. We should add
Speaker 1: down about twenty in the pre market. But it's interesting
Speaker 1: because there's a little bit of a ripple effect here,
Speaker 1: and I'm no surprise they did say they're dealing with
Speaker 1: a lot of the issues that you heard in Alphabet
Speaker 1: and Microsoft's earnings as well, inflation, higher costs as well,
Speaker 1: but they really emphasize this idea about just how much
Speaker 1: they're investing on the metaverse and just how much that's
Speaker 1: going to cost and eat into their bottom line. But
Speaker 1: Mark Zuckerberg coming out and saying, you know what, guys
Speaker 1: stick with us, have faith in the long term process,
Speaker 1: trying to reassure investors it's not really working out for
Speaker 1: the shares this morning. And remember shares were already down
Speaker 1: about this year now and down another in the pre market,
Speaker 1: so that's going to be significant. But what's also interesting
Speaker 1: is as he talked about these kind of skyrocketing costs,
Speaker 1: these investments into the metaverse, there's another company that benefited
Speaker 1: off of that, and that is in Video n v
Speaker 1: D A your taker up two point nine percent. Now
Speaker 1: we know a lot of these type of chip companies,
Speaker 1: and Video specifically have been trying to branch out and
Speaker 1: diversify a little bit, and Video specifically also makes chips
Speaker 1: for data warehouses, data warehouses that one day could power
Speaker 1: the metaverse. So the idea here being that if Facebook
Speaker 1: UH or Meta now known as Meta actually invests more
Speaker 1: and more in their kind of metaverse technology, and the
Speaker 1: underlying servers and video actually benefits because they get that
Speaker 1: business from Facebook. So kind of a little interesting domino effect. Well,
Speaker 1: let's talk about some of these earnings that just crossed
Speaker 1: a few beats this morning, creating a few beats this more.
Speaker 1: And I'm gonna start with Southwest here because some good
Speaker 1: numbers coming out of there, up about four percent in
Speaker 1: the pre market. The tickers l u V now they
Speaker 1: did come out and they said they're actually seeing a
Speaker 1: passenger revenue come out about five point six billion dollars UH.
Speaker 1: The estimate was five point six six, so about in line,
Speaker 1: which is good news for a lot of these airlines
Speaker 1: that are perhaps looking at a consumer that is less
Speaker 1: willing to spend perhaps. Nevertheless, it is boosting those shares.
Speaker 1: You also have Mark by the way, m r K
Speaker 1: is your ticker, another beat for them, up about six
Speaker 1: tenths of one percent. And what's great about this company
Speaker 1: is that they not only beat their estimates, they boosted
Speaker 1: their full year sales forecast. That is not something you
Speaker 1: hear very often going into Like I said, what's expected
Speaker 1: to be a leaner Christmas, a leaner holiday season. Nevertheless,
Speaker 1: Mark really benefiting, I should say very quickly, honeywell as well,
Speaker 1: h o N spiking about seven percent in the pre market.
Speaker 1: All right, Bloomberg Radio and TV Markets corresponding. Crety cooked
Speaker 1: out with us this morning. As we continue to watch
Speaker 1: the market as a whole ahead of the open, futures
Speaker 1: are mixed. SMP futures little change to the downside now
Speaker 1: Doubt futures are still higher, up a hundred forty five points,
Speaker 1: NASTAG futures still on the decline. They are down sixty
Speaker 1: five points, and the tenure treasury now down fifteen thirty seconds,
Speaker 1: the yield four point zero six percent. This is Bloomberg.
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Speaker 1: Business lash. It's another busy morning for corporate earnings. SMP
Speaker 1: futures are that will change, while NASDAG futures are falling.
Speaker 1: Let's go to the Sword breaking newsdesk for today's morning call,
Speaker 1: and here's Bill Maloney. Bill, good morning, Good morning, Karen
Speaker 1: u s features are mixed amid the plunge in Facebook
Speaker 1: this morning. If you just currently hired by a hundred
Speaker 1: and fifty six points, smps are a little change, like
Speaker 1: you said, and NASDA futures are lower by sixties seven.
Speaker 1: The US ten year old at four point eight percent,
Speaker 1: Gold is down three, oil is trading in the green,
Speaker 1: and Bitcoin is lower by one percent. Hong Kong rose
Speaker 1: point seven percent overnight, while RPM markets are trading mostly
Speaker 1: lower this morning and back in the US on the
Speaker 1: economic Frinday thirty g d P initial jobs claims and
Speaker 1: durable goods orders. After about US night, Facebook did reports
Speaker 1: she has it down twenty percent in the pre market,
Speaker 1: and Ford trimmed its outlook regarding some of the earnings
Speaker 1: this morning, merket boosted its fiskey your just DPS forecast,
Speaker 1: and Caterpillar beat estimates and other news people familiar said
Speaker 1: that Elon must told Twitter staff he doesn't plan to
Speaker 1: cut seventy five of jobs and wrapping things up, Ferrari
Speaker 1: was raised to buy HSBC Facebook cut to Eco Weight
Speaker 1: and Morgan Stanley Live from the First to breaking news,
Speaker 1: descam boo maloney care all right, Bill, thank you, and
Speaker 1: to hear like breaking news over your Bloomberg type squawk
Speaker 1: on your terminal SKU you a wuk, that's a Bloomberg
Speaker 1: business flash. Now here's Michael Barr with more on what's
Speaker 1: going on around the world. Michael Karen, thank you very much.
Speaker 1: Russian President Vladimir Putin personally oversaw Moscow's first major nuclear
Speaker 1: drills since he invaded Ukraine, simulating a massive nuclear strike.
Speaker 1: Western allies warned Russia could use such an event as
Speaker 1: a false flag to blame Ukraine for an attack that
Speaker 1: Moscow carries out itself. The International Energy Agency says it
Speaker 1: believes global emissions will peak. In the group's annual World
Speaker 1: Energy Outlook report finds that the global energy crisis, triggered
Speaker 1: by Russia's invasion of Ukraine and the ensuing increase in
Speaker 1: fuel prices are propelling investment in renewable energy in the NBA.
Speaker 1: The next one in overtime over the Hornets one four
Speaker 1: one the Nets lost in hockey. The Island is Blank,
Speaker 1: Rangers three Zip Thursday Night Football to Night, The Ravens
Speaker 1: take on the Buccaneers. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Take, powered by
Speaker 1: more than seven hundred journalist and analysts more than twenty countries.
Speaker 1: Michael Blair and this is Bloomberg keron Ry, Michael Berg.
Speaker 1: Thank you on Wall Street, and we turned to news
Speaker 1: and science and technology now with the Bloomberg n j
Speaker 1: I T. Stemmer Report, brought to you by New Jersey
Speaker 1: Institute of Technology, ranked a top one hundred national university
Speaker 1: by US News and World Report and ever fourteen in
Speaker 1: the nation on Money's Best Colleges List. Learn more at
Speaker 1: n j I T dot E d U and here's
Speaker 1: just making news in science, Technology, engineering, and math. The
Speaker 1: World Meteorological Organization says three main greenhouse gasses hit record
Speaker 1: high levels in the atmosphere last year. The U N
Speaker 1: Weather Agency said of the three main types of heat
Speaker 1: trapping greenhouse gases, carbon dioxide, methane, and nitrous oxide. The
Speaker 1: biggest jump from twenty twenty one was in methane. It
Speaker 1: says methanes concentrations in the air came in with the
Speaker 1: biggest year on year increase since regular measurements began four
Speaker 1: decades ago. Tesla faces a US criminal investigation into its
Speaker 1: self driving system. Bloomberg News has learned that the Justice
Speaker 1: Department is investigating whether the company made misleading claims about
Speaker 1: Tesla's cars ability to drive themselves. Neither the government nor
Speaker 1: Tesla are commenting. And nearly four hundred school districts across
Speaker 1: the country are receiving roughly one billion dollars in grants
Speaker 1: to purchase about two thousand, five hundred clean school buses
Speaker 1: under a new federal program. The Budden Administration is making
Speaker 1: the grants available as part of a wider effort to
Speaker 1: accelerate the transition to zero emission vehicles and reduce air
Speaker 1: pollution near schools and communities. And that's the Bloomberg and
Speaker 1: j I T Stem Report. Nathan, Thanks Karen. We're live
Speaker 1: from the Bloomberg Interactive Brokers Studios or at six fifty
Speaker 1: one on Wall Street Time Now to check what's going
Speaker 1: on in d C. Some of the top stories in
Speaker 1: our nation's capital include the Biden administration reworking its plan
Speaker 1: to cap Russian oil prices. House Republicans launching a probe
Speaker 1: into President Biden's oil reserve releases, the President honing his
Speaker 1: economic message in the waning days of the mid term campaign,
Speaker 1: and Treasury Secretary Yelling playing a more political role with
Speaker 1: a visit to battleground Ohio. Let's bring in Bloomberg Government
Speaker 1: Congressional reporter Jack Fitzpatrick to get more on some of
Speaker 1: these stories, including some really important work by our economic team.
Speaker 1: Jack on the Biden administration now being forced to rework
Speaker 1: it's a plan on a Russian oil price cap. Yeah,
Speaker 1: this is uh not a great sign for the White
Speaker 1: Houses ambitions for that cap. They're they're essentially scaling back
Speaker 1: what they have talked about. Uh. They originally talked about
Speaker 1: a forty to sixty dollar preparal UH price on Russian oil.
Speaker 1: Are report or colleagues are reporting this is going to
Speaker 1: end up being somewhere in the upper range of that UH.
Speaker 1: And they were trying to see how many countries they
Speaker 1: could get involved in this UH, and as of now
Speaker 1: it's looking like it's the Group of seven nations plus Australia,
Speaker 1: and our collegs are reporting that South Korea has also
Speaker 1: privately said that it's it's going to comply UH, and
Speaker 1: that there is an attempt to see if New Zealand
Speaker 1: and Norway could get on board. But it's going to
Speaker 1: be a smaller group of countries UH. That makes the
Speaker 1: Russian threat that they will refuse to sell to the
Speaker 1: country's involved more legitimate. UM. So it's sort of a
Speaker 1: reduction of the US's expectations on how much this can
Speaker 1: do after Russia has continued to make money off of
Speaker 1: oil sales and and essentially continue to fund its war
Speaker 1: in Ukraine. Of course, this is coming after the OPEC
Speaker 1: plus nations came in with that two million barrel a
Speaker 1: day oil production target cut announcement, and I guess signs
Speaker 1: that perhaps Saudi Arabia, the leading OPEC nation, still have
Speaker 1: a lot of sway in this global oan market. Yeah,
Speaker 1: that was a significant factor in UH sort of tamping
Speaker 1: down the the US's expectations for how much good could
Speaker 1: be done with this. A lot of frustration from American
Speaker 1: officials in both parties with the Opeque Nations and with
Speaker 1: Saudi Arabia, especially as you see uh President Biden sort
Speaker 1: of maintaining the relationship there. Uh, you know there there
Speaker 1: was quite a bit of frustration with Saudi Arabia, which
Speaker 1: is that that that plays into this and was the
Speaker 1: Opeque plus uh cut in production, Uh definitely undermined this
Speaker 1: attempt to to I guess hold Russia's feet to the fire.
Speaker 1: And on top of this, Jack this word this morning
Speaker 1: that Republicans on the House Oversight Committee are going to
Speaker 1: start an investigation into the strategic oil reserve releases that
Speaker 1: President Biden has been doing for the last couple of months. Here,
Speaker 1: what's going on with that? Yes, they have sent a
Speaker 1: letter the Republicans on the House Oversight Committee seeking documents
Speaker 1: relating to the decisions to release oil from the Strategic
Speaker 1: Petroleum Reserve. And this is something that Republicans had criticized,
Speaker 1: saying that those releases seemed to be politically motivated, especially
Speaker 1: the ones that have occurred in the lead up to
Speaker 1: the mid terms, as it obviously benefits Democrats and the
Speaker 1: party in power to see gas prices go down. But
Speaker 1: in addition to just being opposed to that. This, this
Speaker 1: move by the Oversight Committee Republicans kind of previews the
Speaker 1: ways that Republicans would act if they win the House
Speaker 1: and or Senate. Is going to be a significant amount
Speaker 1: of focus on oversight and investigations of the Biden administration. Uh.
Speaker 1: And so this is you know, almost I guess a
Speaker 1: move from a House Republican majority before it's a majority already. Uh,
Speaker 1: this will clearly be uh, sort of an issue on
Speaker 1: the campaign trail already. But if they do take the majority,
Speaker 1: this will be something they'll they'll be focusing on in
Speaker 1: in trying to rein in the Biden administration. And with
Speaker 1: all this in the backdrop, Jack, we have President Biden
Speaker 1: going back on the campaign trail to end this week.
Speaker 1: What's he going to be focused on? Uh, He's definitely
Speaker 1: gonna be focused on the economy. Today this afternoon, he's
Speaker 1: going to Syracuse, New York. He's talking about an investment
Speaker 1: by Micron UH, a microchip manufacturer that is a pretty
Speaker 1: significant focus for Democrats after the Chips Act that was passed.
Speaker 1: He's also going to be headed to Philadelphia on Friday.
Speaker 1: So there's a very clear sort of federal investment and
Speaker 1: jobs message that he is he is pushing in certain states.
Speaker 1: There's certain places he's not going so much, Arizona, for example,
Speaker 1: but you see him going to New York State and
Speaker 1: then again another trip to Pennsylvania, where he's been a
Speaker 1: number of times recently. And in just a thirty seconds here, Jack,
Speaker 1: I guess I'll focus on the economy. May be part
Speaker 1: of the reason why we've got Treasury Secretary Janet Yellen
Speaker 1: hitting the campaign trail in Ohio today right going to
Speaker 1: northeast Ohio. She's gonna be talking in Cleveland about rust
Speaker 1: belt issues and investments, gonna raise production of parts that
Speaker 1: go into electric vehicles there. It's interesting to see a
Speaker 1: Biden administration official, uh, sort of making a play where
Speaker 1: Tim Ryan is involved in the Senate race there he's
Speaker 1: sort of distanced himself from National Democratic figures, but that
Speaker 1: very much is also his message on the quote unquote
Speaker 1: battery belt. So that's a that's another high profile push
Speaker 1: from the Biden administration. Now. Also interesting to see someone
Speaker 1: who you think of more as a steeped in the
Speaker 1: economy rather than potentially a political speaker going out and
Speaker 1: hitting the stump. But we'll leave it there. For now.
Speaker 1: Jack Fitzpatrick of Bloomberg Government, as always, thanks for the
Speaker 1: update from Washington, and you can read more at Bloomberg
Speaker 1: dot com or on the Bloomberg terminal. Listen for updates
Speaker 1: on all those appearances today on Bloomberg Radio in Washington
Speaker 1: Bloomberg and one oh five point seven FM h D two,
Speaker 1: and tune into Bloomberg Daybreak tomorrow. We're gonna wrap up
Speaker 1: tech earnings and get reaction to the results after the
Speaker 1: belt today from Apple and Amazon. Gene Munster, the co
Speaker 1: founder of Loup Ventures, will join us tomorrow morning to
Speaker 1: recap big tech. Looking ahead to the market open this morning,
Speaker 1: futures are now mixed. S and P futures little change
Speaker 1: to lower down futures up a hundred forty two, Nasdaq
Speaker 1: futures down seventy points. For Karen Moscow. I'm Nathan Hager,
Speaker 1: and this is Bloomberg