Speaker 1: Live from the Bloomberg Interacted Berger Studios. This is Bloomberg
Speaker 1: day Break for Friday, November eleven two. Coming up this
Speaker 1: shour Stocks followed Yesterday's powerful rally with war games Chinese
Speaker 1: in Hong Kong. Stocks search after Beijing is is quarantine
Speaker 1: rules at the X dot COM's assets are frozen by
Speaker 1: authorities in the Bahamas and Elon Musk lawrence of a
Speaker 1: possible bankruptcy at Twitter. New York City Mayor Adams defends
Speaker 1: his focus on crime. Plus the remnants of Hurricane Nicole
Speaker 1: leave at least two people dead in Florida. Michael Barr
Speaker 1: More ahead, I'm John Stashower. In sports, mid third period
Speaker 1: for the Rangers to win. In Detroit, the Islanders were
Speaker 1: shot out. The Devils won their eighth in a row.
Speaker 1: That's all straight ahead on Bloomberg day Break on Bloomberg eleven,
Speaker 1: Free on New York, Bloomberg Washington, d C, Bloomberg one
Speaker 1: or six one, Boston, Bloomberg nine sixty, San Francisco, Sirius
Speaker 1: XM one nineteen and around the world on Bloomberg Radio.
Speaker 1: Come and via the Bloomberg Business Set. Good Friday morning.
Speaker 1: I'm Amy Morris and I'm Karen Moscow in US. Dock
Speaker 1: Index futures are higher this morning here coming up to
Speaker 1: five oh one on Wall Street, and we checked the
Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg
Speaker 1: right now, S and P futures up twenty three points.
Speaker 1: DAL futures have one hundred seventy six and as day
Speaker 1: futures have one hundred one. There is no trading on
Speaker 1: the bond market today and observance of the Veterans Day holiday.
Speaker 1: Nine X screwde oil is up two point eight percent,
Speaker 1: Amy Karen, US futures are building on yesterday's historic rally.
Speaker 1: The S and P five hundred, coming off of five
Speaker 1: and a half percent, game for the best first day
Speaker 1: reaction to a CPI report since at least two thousand three,
Speaker 1: when records began. Headline inflation came in at seven point
Speaker 1: seven percent. That's the lowest since January. DoD Cioca is
Speaker 1: CEO at Covar Capital. You think what ended the bear
Speaker 1: market top two weeks ago, it's when the FED came
Speaker 1: out of the press conference. So if the Fed now
Speaker 1: and in the redemester being one of the head hawks,
Speaker 1: is talking a little less strongly the market. Way take
Speaker 1: that as a higher probability that this may not be
Speaker 1: a bear market bounce, but something start of the next
Speaker 1: legable market. Despite the rally k of our capitals, Dougs
Speaker 1: notes the sp is still down this year. Well, Amy,
Speaker 1: we saw an immediate reaction and FED funds future is
Speaker 1: following the report. Rates traders now see just a half
Speaker 1: point rate hike next month instead of another three quarter
Speaker 1: point increase. The Fed appears to be backing a down
Speaker 1: shift in rate hikes. And here's Dallas FED President Lorie
Speaker 1: Logan and Philadelphia Fed President Patrick Harker what. I believe
Speaker 1: it may be appropriate to slow the pace of rate
Speaker 1: increases so we can better assess how financial and economic
Speaker 1: conditions are evolving. I also believe a slower pace should
Speaker 1: not be taken to represent easier policy the upcoming month,
Speaker 1: to light of the Kumlici fighting we have achieved, I
Speaker 1: expect we will slow the pace of our rate hikes
Speaker 1: as we approach a sufficiently restrictive stance. But I want
Speaker 1: to be clear a rate hike of fifty basis points,
Speaker 1: which still be significant. Philadelphia Fed President Patrick Harker and
Speaker 1: Dallas Fed Sheef of Lori Logan spoke at separate events
Speaker 1: yesterday after the latest inflation reading. The softer consumer price
Speaker 1: brined coupled with China's move to eastern COVID rules, fueled
Speaker 1: a rally in Asia. Overnight starts in the region jumped
Speaker 1: by the most since March. Let's get the recap from
Speaker 1: Bloomberg's Juliet Sally. In Singapore, Good Morning, Juliette, Good Morning
Speaker 1: Avian Karen. The m c I Asia Pacific Index climbed
Speaker 1: more than four and a half percent, also on track
Speaker 1: for its best weekly gain since March twenty twenty. Hong
Speaker 1: Kong's benchmark search more than seven percent after China reduced
Speaker 1: its quarantine time for inbound travelers and scrapped COVID flat suspensions,
Speaker 1: adding to the positive sentiment around top leaders calling for
Speaker 1: a more targeted approach to controlling the coronavirus Regionally, chipmakers
Speaker 1: also saw that drove benchmarks in Taiwan, South Korea and
Speaker 1: Japan highm and local currency has got to boost as
Speaker 1: the dollus off at its worst day since two thousand
Speaker 1: and nine, the Korean one jumping the most since October
Speaker 1: two thousand and eight. In Singapore, Juliette Sally Bloomberg Daybreak,
Speaker 1: Very juliet Thanks in Europe today we have data on
Speaker 1: the British economy g d P and the UK shrank
Speaker 1: in the third quarter, marking the startup was expected to
Speaker 1: be a protracted recession. Gross domestic product fell two tenths
Speaker 1: of one percent. Consumers spending in business investment both fell.
Speaker 1: The Bank of England sees a recession persisting into the
Speaker 1: middle of and new developments this morning involving FTX, dot
Speaker 1: Com and the crypto collapse that it sparked. A securities
Speaker 1: regulator in the Bahamas has now frozen the assets of
Speaker 1: ft X and related parties. We get more from Bloomberg's
Speaker 1: Doug Krisner. The Bahamas Securities Commission said a freeze was
Speaker 1: the prudent course of action to preserve assets and stabilize
Speaker 1: the company, and an attorney has been appointed provisional liquidator
Speaker 1: as commission aims to place the beleaguered crypto exchange into receivership.
Speaker 1: The Commission also said it's aware of statements suggesting client's
Speaker 1: assets were mishandled, mismanaged, and or transferred to Alameda Research.
Speaker 1: Alameda is the trading house at the heart of bankmn
Speaker 1: Freed's digital asset Empire. He is the founder and CEO
Speaker 1: of ft X dot Com based in the Bahamas in
Speaker 1: New York. I'm Doug Prisoner, Bloomberg day Break. All right, Doug,
Speaker 1: thank you about Twitter is in the spotlight once again
Speaker 1: today Bloomberg News has learned that Elon Musk is telling
Speaker 1: employees that bankruptcy is a possibility for the company. We
Speaker 1: get the story from Bloomberg Shirley Pellett. Word came in
Speaker 1: his first address to Twitter employees since buying the company
Speaker 1: for forty four billion dollars. The social network has a
Speaker 1: significant debt burden from the acquisition and has seen a
Speaker 1: pullback from some advertisers that are concerned about Musk's plans
Speaker 1: for content moderation. Musk also told staff on the call
Speaker 1: that the days of free food and other perks are
Speaker 1: over at Twitter's offices in New York. Charlie Pellets Bloombird
Speaker 1: day Break. Thank you, Charlie. One other note on Twitter,
Speaker 1: the social media network has reinstated official badges for high
Speaker 1: profile accounts to combat a growing problem of users impersonating
Speaker 1: major brands. The gray badge reappeared below the profiles of
Speaker 1: businesses and major media outlets this morning, and Alet's get
Speaker 1: you have to date on politics Amy and the race
Speaker 1: for the Senate control still undecided three days after the election.
Speaker 1: All comes down to three states counts and ongoing in
Speaker 1: Arizona and Nevada. And the race in Georgia is going
Speaker 1: to a runoff in December. President Biden says Democrats face
Speaker 1: long odds to keep control of the House, but says
Speaker 1: it's not impossible. Oh you know if still is staw
Speaker 1: like broad Gardge spirits there stole. Republicans are on page
Speaker 1: to win at least two hundred ten seats so far
Speaker 1: compared to Democrats one ninety two. Two hundred eighteen seats
Speaker 1: are required for a majority. And it is a blow
Speaker 1: for the Biden administration. Of Federal Judge and Texas has
Speaker 1: struck down the president's plan to forgive student loans. The
Speaker 1: judge called it one of the largest exercises of legislative
Speaker 1: power without congressional authority in the history of the country.
Speaker 1: Justice says it will appeal. The plan is already on
Speaker 1: hold under an emergency state. This is Bloomberg. It's five
Speaker 1: oh seven on Wall Street. Let's bring in Michael Barr
Speaker 1: with more on what else is going on in New
Speaker 1: York and around the world. Good morning, Michael, Good morning Amy.
Speaker 1: New York City Mayor Eric Adams says he won't stop
Speaker 1: talking about crime. Pushing back on criticism that he helped
Speaker 1: fuel the momentum of Republican candidates across the state in
Speaker 1: the midterm elections, Adam says that the system is broken
Speaker 1: and no one wanted to hear that. Adams later spoke
Speaker 1: at a community event on public safety. He talked about
Speaker 1: removing the homeless off the streets. When I started in January,
Speaker 1: I went out and visited those camps and those encampments,
Speaker 1: and I saw inside there was in humane human waste,
Speaker 1: stale food, dirty clothing, drug pal phernalia. Some people will
Speaker 1: buy folk by Polo schizophrenic. That is inhumane to allow
Speaker 1: people to live that way. And I said, as the
Speaker 1: mayor of this city, is not happening under our watch.
Speaker 1: Republican candidate seized upon crime as a central issue in
Speaker 1: the mid terms, including Representative Lee Zelden, who ran closer
Speaker 1: than expected in his failed bids unseat New York's Democratic
Speaker 1: Governor Kathy Hokel. President Biden left last night for his
Speaker 1: foreign country tour. The President will be joining world leaders
Speaker 1: in Egypt next week for the United Nations Global Climate Summit,
Speaker 1: also known as COP Meanwhile, the bilateral meeting between President
Speaker 1: Shi Jing Ping and Joe Biden has been set for
Speaker 1: the sidelines of the G twenty early next week, Bloomberg said.
Speaker 1: Baxter reports. US National Security Adviser Jake Sullivan says the
Speaker 1: US will brief Taiwanese officials before and after the President's
Speaker 1: talk they sit down Monday. Sullivan says, face to face,
Speaker 1: he will get to sit in the same room with
Speaker 1: Shi Jimping, be directed straightforward with him as he always is,
Speaker 1: and expect the same in return from she, and then
Speaker 1: he can make his judgments on that basis about how
Speaker 1: to take things forward. Sullivan says he's confidence Taipei will
Speaker 1: feel secure about its support from the United States. Sullivan
Speaker 1: repeated the US Commitment to Taiwan Relations Act and Peace
Speaker 1: and Stability in the Strait. In San Francisco, I'm at
Speaker 1: Baxter Bloomberg Daybreak. Tropical depression Nicole is in Georgia this
Speaker 1: morning after a day of causing havoc in Florida as
Speaker 1: a hurricane and then a tropical storm Nicole had cut
Speaker 1: across central Florida after making landfall near Vero Beach. The
Speaker 1: storm caused at least two deaths and sent homes along
Speaker 1: Florida's coast toppling into the ocean. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: and more than a hundred twenty countries. I'm Michael Barr,
Speaker 1: and this is Bloomberg Amy. All right, thank you, Michael.
Speaker 1: It's five ten on Wall Street. Time now for the
Speaker 1: sports report. Rocks do you by tri State OUTI here's
Speaker 1: John dash Our saying me. The Rangers went to Detroit
Speaker 1: having recently lost to the Red Wings, part of a
Speaker 1: three game losing speak and they trailed to to one.
Speaker 1: It was to to third period of the Rangers errupted
Speaker 1: six goals and ten and a half minutes, six different
Speaker 1: goal scorers, Rangers one, eight to two. Islanders shot out
Speaker 1: by Arizona to nothing. Devil's stay hot in overtime with
Speaker 1: Ottawa power play, game winner for the Devils at the
Speaker 1: winning street is at eight. His radio call him a Nico.
Speaker 1: He shear Tippin for the fourth three victory. Nike boss
Speaker 1: Phil Knight says his company likely ending its relationship with Kyrie. Irving,
Speaker 1: now serving a suspension with the Nets posting to the
Speaker 1: anti semitic video, was refused to apologize. Although NBA Commissioner
Speaker 1: Adam Silver, who recently met with Irvine, told The New
Speaker 1: York Times he does not believe Irving anti semitic. Lebron
Speaker 1: James wants an Irving teammate, said he should be out
Speaker 1: to play. Lebron said the requirements the Nets have put
Speaker 1: in place for reinstatement are excessive. NFL Carolina being Atlanta
Speaker 1: fifteen Panthers at three and seven, Falcons are four and six.
Speaker 1: The entire NFC South is under five hundred, as opposed
Speaker 1: to the Jets division the a f C East, where
Speaker 1: everyone is over five hundred. Jets are office Make Giants
Speaker 1: Sunday host Houston Giants also in a tough division, battling
Speaker 1: Dallas and unbeaten Philadelphia. As for Washington, the problems there continue,
Speaker 1: the DC Attorney General finding a civil lawsuit against the
Speaker 1: team in order Dan Snyder, as well as Roger Goodell
Speaker 1: in the NFL for covering up and deceiving fans of
Speaker 1: what was going on in a toxic workplace. Recently indications
Speaker 1: Snyder maybe finally looking to sell the team. John dash Howard,
Speaker 1: Bloomberg Sports, AM all right, thank you, John. Let's check
Speaker 1: the futures now. S andb features up a half percent
Speaker 1: at nineteen point seven five points down, futures up at nastack,
Speaker 1: futures up eighty four. The decks in Germany of four
Speaker 1: tenths of apresent, cak in Paris of sixtenth sever percent,
Speaker 1: foots in London down three tenths of a percent. This
Speaker 1: is Bloomberg. The Bloomberg Sports Report was brought to you
Speaker 1: by Audie. Don't let someone else drive off in the
Speaker 1: Audi model that you've always wanted. Visit your local Tri
Speaker 1: state autie dealer to get behind the wheel of yours today,
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Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quicktake.
Speaker 1: This is a Bloomberg Business lash find I'm Cameron. Moscow
Speaker 1: and US stock index futures and European shares are rallying
Speaker 1: as they euphoria over falling inflation in the world's largest
Speaker 1: economy extends into a second day, and China relaxes some
Speaker 1: COVID restrictions. We checked the markets every fifteen minutes throughout
Speaker 1: the trading day. On Bloomberg, SNP futures up about twenty
Speaker 1: five points down futures of A hundred seventy three and
Speaker 1: NASDACK futures have one hundred six that ecs in Germany's
Speaker 1: up about half percent. No trading on the bond market
Speaker 1: today and observance of the Veterans Day holiday. NIMEX Screwed
Speaker 1: oil is a three point four percent, up two dollars
Speaker 1: ninety four cents at eighty nine dollars forty one cents
Speaker 1: of barrel comics gold up nine tenths per cent or
Speaker 1: fifteen dollars eighties cents at seventeen sixty nine forty announced.
Speaker 1: The euro one point two seven four against the dollar,
Speaker 1: British found one point one seven six five and again
Speaker 1: one thirty nine point one eight and looking at bitcoint
Speaker 1: it's down three point two percent at seventeen thousand, two
Speaker 1: hundred dollars And as a Bloomberg business flash, now here's
Speaker 1: Michael Barr with more on what's going on around the world.
Speaker 1: Michael could good morning. A fast moving missile has struck
Speaker 1: an apartment building in the south of the Ukraine. People
Speaker 1: in Michelaive woke to find the building in ruins. Rescuers
Speaker 1: raced with the same digging through debris for survivors. A
Speaker 1: federal judge in Texas struck down the Biden administration sweeping
Speaker 1: student loan forgiveness plan. US District Judge Mark Pittman and
Speaker 1: a pointee of President Trump called it one of the
Speaker 1: largest exercises of legislative power without congressional authority in the
Speaker 1: history of the United States. In the NHL, the Devil's
Speaker 1: won in overtime against the Senators for three. The Rangers
Speaker 1: and Bruins also won. The Islanders lost. In the NBA
Speaker 1: the Wizards. One Thursday Night football, the Panthers beat the Falcons.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than d journalist and
Speaker 1: analysts more than a hundred twenty countries. I'm Michael Barr.
Speaker 1: This is Bloomberg Gaming. All right, Thank you, Michael. It
Speaker 1: is five nineteen on Wall Street Live from the Bloomberg
Speaker 1: Interactive Broker Studios. This is Bloomberg Daybreak. We're joined now
Speaker 1: by global market strategists Ben Leidler with Toro. Ben. Good
Speaker 1: morning to you. Thank you for taking the time with
Speaker 1: us today. We are watching the markets. Is this a
Speaker 1: bear market rally we're seeing? Yes, I think it is,
Speaker 1: but I think it's very well supported and and this
Speaker 1: is stet one right that. Um, I think we've seen
Speaker 1: the bottom and off has happened, and we're beginning to
Speaker 1: sort of see the inflation fever breaking. And this is
Speaker 1: sort of the necessary precondition I think to set us
Speaker 1: up for the next bull market. I don't think we're
Speaker 1: quite there yet, but I do think we're beginning to
Speaker 1: build those necessary foundations. Well that's a that's good news.
Speaker 1: Then if you're talking about eliminating inflation or at least
Speaker 1: crawling out of that inflation spike, how much longer could
Speaker 1: this last as far as the bear market before it
Speaker 1: actually becomes full? So this is our fifth bear market
Speaker 1: rally of the year. Historically you've seen up to ten,
Speaker 1: so we could well have a sort of a few
Speaker 1: more to go. But I do think the key is
Speaker 1: that with the bottom in here, this is a very
Speaker 1: investable market, and the next big move I think we'll
Speaker 1: be up rather than down. And I think, you know,
Speaker 1: Christmas is definitely coming early. We've seen less bad third
Speaker 1: quarter earnings. We've got valuations which are now follow average
Speaker 1: after the sell off this year, We've got wild cards
Speaker 1: like China improving, and now we've beginning to see um
Speaker 1: inflation easing, and we're beginning to see the top of
Speaker 1: this sort of Fed interest rate cycle. We're not there yet.
Speaker 1: There's a long way to go, but but again these
Speaker 1: are sort of very positive early signs. When you say
Speaker 1: there's a long way to go, do you see this
Speaker 1: as sort of an incremental over a long term, a
Speaker 1: little bit at a time, crawling out of this, or
Speaker 1: do you see it a little bit faster. I think
Speaker 1: this is two steps forward. Once they're back, you know,
Speaker 1: we need much lower inflation and a start of Fed
Speaker 1: interest rate cuts, not just a sort of view of
Speaker 1: the top of the cycle. So I think, you know,
Speaker 1: that's all a story for later in three but markets
Speaker 1: sort of, you know, move up on incremental information. We're
Speaker 1: very depressed, UM investor sentiments very poor, and again these
Speaker 1: are sort of the first steps in the right direction
Speaker 1: and the markets reacting to that. I think the big
Speaker 1: relief rally you saw yesterday tells us three very important things.
Speaker 1: One that it's all about inflation, to how depressed investors are,
Speaker 1: and three that you need to be invested um to
Speaker 1: capture these sort of market moves when when they do
Speaker 1: stopped moving up. Let's shift just a little bit away
Speaker 1: from inflation and look at the election in the mid terms.
Speaker 1: I'm wondering if the markets also priced in the outcome
Speaker 1: of the election. Those are still beingcountered, some races are
Speaker 1: yet to be decided. Is that going to have more
Speaker 1: of an impact as we learn more maybe a little
Speaker 1: bit so you know, actually firm up the election results
Speaker 1: and as we probably get gridlock. I think the short
Speaker 1: term impact there is a is a small positive. That's
Speaker 1: one less thing for markets to worry about. And if
Speaker 1: you look at the historic data, market sort of rewarded
Speaker 1: rewarded gridlock um. But but again, I think the bigger
Speaker 1: story is the fundamentals. What's happening inflation, what's happening with
Speaker 1: earnings um, and also seasonality. I mean, as I say,
Speaker 1: Christmas is coming early November December, traditionally your best months
Speaker 1: of the year as investors sort of look ahead to
Speaker 1: the year ahead. And I think that's particularly important after
Speaker 1: the sort of unparalleled losses we've had in both equities
Speaker 1: and bonds this year. I think the outlook for three
Speaker 1: is apts lutely for a less bad year, and I
Speaker 1: would expect this sort of year end effects to be
Speaker 1: quite powerful this year as investors look ahead for that,
Speaker 1: as we look ahead to that. As far as cooling
Speaker 1: off the Fed's aggressive rate hikes, when will they pivot?
Speaker 1: When can we see that? So step one is to slowdown, um,
Speaker 1: and it could could well come. For the December meeting.
Speaker 1: We we stepped down from seventy five basis point hikes
Speaker 1: the fifty basis point hikes. That's that one. Step two
Speaker 1: is they actually pause. I think that's the first quarter
Speaker 1: three story. And then step three, which I think is
Speaker 1: the catalyst for the next bull market, is when they
Speaker 1: actually start cutting interest rate. We may need to wait
Speaker 1: longer for that, you know, right to the end of
Speaker 1: next year, but markets are gonna start discounting that before
Speaker 1: it actually happens. Are there any sectors you like? So?
Speaker 1: I think the story for now is to be invested
Speaker 1: but reasonably defensive as they say, this is going to
Speaker 1: be two steps forward, one step back. So you know, healthcare,
Speaker 1: high dividends UM. You know, more defensive international markets by
Speaker 1: the UK UM. And you know, as we get more
Speaker 1: validation than the inflations coming down, we get closer to
Speaker 1: these interest rate cuts UM start adding, you know, more
Speaker 1: risk of the portfolios that's tech, that's real estate, things
Speaker 1: like financials. Are there any X factors we need to
Speaker 1: be watching for a goat about thirty seconds here in
Speaker 1: the next few weeks, it's gonna remain a volatile ride inflation.
Speaker 1: You know, we're not out of the woods yet, that
Speaker 1: that inflection point is sort of coming, but it's again
Speaker 1: it's going to be a rocky road. And the reminder
Speaker 1: yesterday it's all about inflation. So just just keep watching that.
Speaker 1: That's driving the FED, that's driving recession and learnings risk.
Speaker 1: Now we're gonna keep watching it with you. Thank you
Speaker 1: so much for taking the time with us to this
Speaker 1: Friday morning. Global market strategists Ben Laidler with E Toro
Speaker 1: watching the markets with us. Look looking at the futures now,
Speaker 1: SMP futures up twenty one, DAL futures up one, DRED
Speaker 1: sixty points. NASDAK futures up eight five points, DAX in
Speaker 1: Germany up four tenths of a percent, CAC in Paris
Speaker 1: up five tenths of a percent. Foot See in London
Speaker 1: down four tenths of a percent. Much more to come
Speaker 1: on this Friday morning edition of Berg Daybreak. This is
Speaker 1: Bloomberg Bloomberg eleven three oh weather becoming rady and breezy today.
Speaker 1: We're going up to seventy degrees, down to six five
Speaker 1: the rain and Wednesday with us tonight and tomorrow. The
Speaker 1: rain ends in the morning with a sunny afternoon going
Speaker 1: up to seventy Broadcasting live from the Bloomberg Interactive Broker
Speaker 1: Studio in New York, Bloomberg E Living Freedom to Washington,
Speaker 1: d C. Bloomberg to Boston, Bloomberg one O six one
Speaker 1: to San Francisco, Bloomberg now sixty to the country Sirius
Speaker 1: XM Chad A one nine and around the globe the
Speaker 1: Bloomberg Business app in Bloomberg Radio dot Com. This is
Speaker 1: Bloomberg Daybreak. It's five thirty on Wall Street. Good morning.
Speaker 1: I may be Morris and I'm Karen Moscow. We are
Speaker 1: just about four hours away from the open of US
Speaker 1: trading must get you up to date on the news
Speaker 1: you need to know at this hour. US future is
Speaker 1: building on yesterday's games, which saw the S and P
Speaker 1: five hundreds surge more than five percent. Slowing inflation was
Speaker 1: a catalyst, but Investment Co Chief investment Officer Dana Daria
Speaker 1: conscience there's still a bumpy road ahead. The FED is
Speaker 1: a lot more concerned about a stop and go policy
Speaker 1: error than they are about pushing a little too hard. Still,
Speaker 1: all else, Equel, I think you still should be prepping
Speaker 1: for potentially top conditions investments. Dana Daria says the likelihood
Speaker 1: of recession next year is still high. It is not
Speaker 1: clear of October CPI print will flow the FED space
Speaker 1: of tightening. San Francisco FED President Mary Daily addressed that
Speaker 1: issue yesterday. Stepping down is an appropriate thing to think about.
Speaker 1: I support a more gradual approach of getting to and
Speaker 1: so we can be discovering the right rate as we go.
Speaker 1: San Francisco FED President Mary Daily one of three officials
Speaker 1: signaling a downshift in right hikes as possible. On new
Speaker 1: crypto developments this morning, I focused on FTX dot Com
Speaker 1: maybe as securities regulator in the Bahama US has now
Speaker 1: frozen the company's amsets. The crypto exchange Binance head trying
Speaker 1: to acquire f t X, but the deal fell through. Now,
Speaker 1: Finance CEO c z Jaw is addressing the matter from
Speaker 1: a technology or product perspective. They don't have anything that
Speaker 1: we don't have, So our original intention was let's save
Speaker 1: the users. But then the news of misappropriate user phones
Speaker 1: and especially US regulatory agency's investigations, we're like, okay, we
Speaker 1: can't touch that anymore. Finance CEO c z Jaw spoke
Speaker 1: at the Indonesia Fintech summit today and Karen, there's another
Speaker 1: possible buyer for f t X. Tron founder Justin Sun
Speaker 1: tells us he's looking at providing the crypto exchange with
Speaker 1: billions of dollars. We need do a food, do dedigence
Speaker 1: at the same time to evaluate the situation, to have
Speaker 1: a full picture of like what's going on, how serious
Speaker 1: is the liquidity cronh Tron founder Justin Sun sells us
Speaker 1: he's still evaluating whether to pursue a deal for FDx.
Speaker 1: Well twitters in the spotlight again. Amy Bloomberg News has
Speaker 1: learned Elon Musk told employees that bankruptcy is a possibility
Speaker 1: for the company. The social media platform this morning has
Speaker 1: also reinstated official badges for high profile accounts to combat
Speaker 1: users impersonating major brands. And a note from overseas. The
Speaker 1: British economy strike and the third quarter marking the start
Speaker 1: of what's expected to be a protracted procession. G d
Speaker 1: P fell two tenths of a percent in the period,
Speaker 1: and again futures are moving higher. This morning, straight ahead,
Speaker 1: your latest local headlines, plus a check of sports, and
Speaker 1: this is Bloomberg by thirty three on Wall Street. Let's
Speaker 1: bring in Michael bar with moreen what else is going
Speaker 1: on in New York and around the world. Good morning, Michael,
Speaker 1: Good morning Amy. New York City Mayor Eric Adams says
Speaker 1: he won't stop talking about crime. Pushing back on criticism
Speaker 1: that he helped fuel the momentum of Republican candidates across
Speaker 1: the state in the midterm elections, Adams says, the system
Speaker 1: is broken and Wilkins and need to talk about that
Speaker 1: until we get it right. Adams later spoke at a
Speaker 1: community gathering on public safety. The person I sat down
Speaker 1: and get their portrait done and had a scar on
Speaker 1: their face. They told the artists that I know you
Speaker 1: noticed my scar, but remember I have a face, and
Speaker 1: I'm saying that to New York City. We have scars,
Speaker 1: but we have a face. Every day, on average, we
Speaker 1: have six felonies on our subway system a day, but
Speaker 1: we also have a face. Three point five million people
Speaker 1: use that subway every day, and they get to and
Speaker 1: from the Police of employment without any incident at all.
Speaker 1: Republican candidates in the US, he eased upon crime as
Speaker 1: a central issue in Tuesday's election. At least two people
Speaker 1: are dead in the wake of Hurricane to Cole in Florida,
Speaker 1: now a tropical depression, the storm weakened overnight as it
Speaker 1: barreled into Georgia. President Biden heads overseas through the middle
Speaker 1: of next week to speak with foreign leaders about climate change,
Speaker 1: the war in Ukraine, and America's competent station with China.
Speaker 1: The President's national security adviser, Jake Sullivan, says his boss
Speaker 1: has been boosted by the better than expected performance of
Speaker 1: his party in the mid term elections. He feels very
Speaker 1: good about where things stand, and he feels like he
Speaker 1: is going out on this trip with the wind very
Speaker 1: much at his back, and um that gives him an
Speaker 1: excellent opportunity both to deal with competitors from a strong
Speaker 1: position and to rally allies in Indonesia. On Monday, President
Speaker 1: Biden sits with his Chinese counterpart on the sidelines of
Speaker 1: the G twenty summit. Today, New York City will hold
Speaker 1: its Veterans Day Parade. Nearly two hundred thousand participants will
Speaker 1: be marching up Manhattan's Fifth Avenue. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than seven hundred journalist and analyst more than
Speaker 1: a hundred twenty countries. Michael Barr, this is Bloomberg Gaming.
Speaker 1: All right, Thank you, Michael on Wall Street. Time now
Speaker 1: for the sports report, brought to you by Try State
Speaker 1: out of Here. John Alright, Amy. Busy night in local hockey,
Speaker 1: Rangers ended a three game slide. They wanted Detroit eight
Speaker 1: to two. They scored six goals in a ten and
Speaker 1: a half minute span of the third period. Islanders in
Speaker 1: Arizona scoreless into the third period. The Coyotes won to nothing.
Speaker 1: Devil's hosted Ottawa, and like the Gay the other night,
Speaker 1: Nico each year scored the game winner in overtime. Devil's
Speaker 1: won four three, They've won eight in a row, eleven
Speaker 1: of twelve and in all eleven they have not allowed
Speaker 1: more than three goals. And the Devils have given Marty
Speaker 1: bro Dur a new job. There, a long time Hall
Speaker 1: of Fame goalie was working as a team advisor, more
Speaker 1: on the business side. Now he becomes VP of Hockey
Speaker 1: Operations GM. Tom Fitzgerald will report to bro Dur. Nixt
Speaker 1: look to get back to five dred Tonight they host Detroit.
Speaker 1: NFL Week ten began with Carolina's to fifteen win over Atlanta.
Speaker 1: Sunday morning, it's Seattle and Tampa Bay in the first
Speaker 1: ever game in Germany. Giants Sunday host housed in a
Speaker 1: team with only one victory. Giants before the bye had
Speaker 1: that loss in Seattle. Their coach Brian Dable, important game.
Speaker 1: You know at home, you're gonna have to play well.
Speaker 1: We came off of b I feel like we're arrested
Speaker 1: the guys. I've had a lot of good energy here
Speaker 1: in these last couple of days, and we need to
Speaker 1: go out there and have a good week, and like
Speaker 1: we do every week. Former Giants linebacker Blake Martinez was
Speaker 1: playing for the Raiders. He had eleven tackles just as
Speaker 1: fast Sunday, and Martinez suddenly yesterday announced his retirement that
Speaker 1: age twenty eight, said he wants to focus on his
Speaker 1: family and gut your passions. Mets picked up the fourteen
Speaker 1: million dollar option on Carlos Carrasco, just had a fifteen
Speaker 1: win season. Justin Verlander declined the twenty five million dollar
Speaker 1: option in Houston becomes a free agent. The Dodgers in
Speaker 1: a long time based Clayton Kershaw said to be close
Speaker 1: to a new one year John Stashiell Bloomberg Sports in
Speaker 1: All right, thank you, John. It's five seven on Wall
Speaker 1: Street time now for the Tri State Business Report. With that,
Speaker 1: here is Bloomberg's Denise Pellegrini, Jersey City based Block five
Speaker 1: now embroiled in the crypto crisis. It's pausing client with Charles,
Speaker 1: the digital asset lender, also asking customers to refrain from
Speaker 1: depositing funds into Block five wallets because of all the
Speaker 1: problems we're add to the collapse of supporters. Sam Bank
Speaker 1: win Fried's ft X crypto Empire Connecticut expects to collect
Speaker 1: five hundred seventy one million dollars more general fund revenue
Speaker 1: this fiscal year. The Legislature's Office of Fiscal Analysis says
Speaker 1: sales and investment tax collections have been improving. Alloy Development
Speaker 1: could power New York City's first all electric tower. Ally
Speaker 1: plans to power the tower with renewable energy projects. This
Speaker 1: would be a forty four story tower on Ali Block
Speaker 1: on Flat Push Avenue in downtown Brooklyn. And attention vegans.
Speaker 1: Time for the New Jersey Vegan Food Fest. It's a
Speaker 1: two day celebration kicking off at the Meadow Ends Exposition
Speaker 1: Center tomorrow featuring local vegan food and also plant based
Speaker 1: fashion with the Tri State Business Report. I'm Denise Pellegrini.
Speaker 1: Thank you, Denise. It's about thirty eight on Wall Street.
Speaker 1: Bloomberg Radio is on the air from San Francisco to
Speaker 1: New York, London to Hong Kong. Let's check in with
Speaker 1: our global news team bar some of the top stories
Speaker 1: and on our three hundred affiliate radiozzations around the world.
Speaker 1: I'm Steve Podascan K and X in Los Angeles. We're
Speaker 1: talking about cracks beginning to form in the willingness of
Speaker 1: luxury consumers to keep paying ever rising prices. I'm Gina Servetti.
Speaker 1: And for w w b B. I'm in Chicago. I'm
Speaker 1: reporting the United Airline says it will give pilots a
Speaker 1: five percent pay hike next month instead of waiting until May,
Speaker 1: as a show of good faith after pilots rejected a
Speaker 1: proposed contract. I'm Caroline Head comploom Bag d a B
Speaker 1: Digital Radium in London. We've been putting on the new
Speaker 1: figure showing the UK economy contracted in the third quarter,
Speaker 1: but not by as much as had been expected. I'm
Speaker 1: Denise Pelligrini and I'm w w J in Detroit. I'm
Speaker 1: reporting on Little Caesar's honoring veterans today and also boosting
Speaker 1: foot traffic. And those are some of the stories our
Speaker 1: Bloomberg journalists and analysts are working on this morning around
Speaker 1: the world. It's five thirty nine on Wall Street. The
Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was
Speaker 1: written by the Bloomberg Editorial Board. Cryptocurrencies were supposed to
Speaker 1: usher in a new and better era of finance, but
Speaker 1: instead of revolutionizing it, crypto is largely repeating its mistakes.
Speaker 1: If further evidence was required, the travails of cryptocurrency exchange
Speaker 1: FTX dot com this week have demonstrated just how far
Speaker 1: from ideal crypto remains. Over the decades, various mechanisms have
Speaker 1: emerged to make traditional financial institutions more resilient, including deposit insurance,
Speaker 1: leverage limits, and liquidity requirements. If crypto intermediaries want to
Speaker 1: act as reliable conduits for investment, they'll have to submit
Speaker 1: to much of the same. Until then, beware, they're not
Speaker 1: worthy of your trust. This editorial was written by the
Speaker 1: Bloomberg Editorial Board. For more Bloomberg opinion, please go to
Speaker 1: Bloomberg dot com, slash Opinion or p I n go
Speaker 1: on the Bloomberg terminal. This has been Bloomberg Opinion. Bloomberg
Speaker 1: Opinion editorials can be heard every weekday at this time.
Speaker 1: Terminal customers can read more at op I n go.
Speaker 1: Futures are higher. This is Bloomberg. The Bloomberg Sports Report
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Speaker 1: for more information, markets, headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com at the Bloomberg
Speaker 1: Business Outland at Bloomberg Quicktape. This is a Bloomberg Business
Speaker 1: lash and I'm Karen Moscow. This update brought to you
Speaker 1: by se I. Imagine your asset management firms operational infrastructure
Speaker 1: as a competitive advance. Che let se I show you
Speaker 1: how at s C I C, dot Com, slash I
Speaker 1: m S and US dot Index. Future is on the
Speaker 1: rise this morning, along with European shares as the euphoria
Speaker 1: over falling inflation and the world's largest economy extends into
Speaker 1: a second day and China relaxes some COVID restrictions. We
Speaker 1: checked the markets every fifteen minutes throughout the trading day.
Speaker 1: On Bloomberg SNP Future is up sixteen points this morning,
Speaker 1: down features of a hundred twenty nine NASDAG futures up
Speaker 1: sixty five the decks in Germany's up a third of uppercent.
Speaker 1: No trading on the US bond market today. That's due
Speaker 1: to the Veterans Day holiday. Nine x screwed oil up
Speaker 1: three and a quarter percent of two dollars eighty one
Speaker 1: cents at eighty nine dollars twenty eight cents of barrel
Speaker 1: coll mix Schold up three quarters of a percent, or
Speaker 1: thirteen dollars twenty cents at seventeen sixty six ten and ounce.
Speaker 1: The euro is at one point two seven two against
Speaker 1: the dollar. British found one point one seven three seven
Speaker 1: the yen one thirty nine point three three. Bitcoin down
Speaker 1: two point nine percent at seventeen thousand, two hundred ninety dollars.
Speaker 1: And that's a Bloomberg business flash. Now here's Michael Barr
Speaker 1: with more on let's go. Thank you very much, Karen.
Speaker 1: In Arizona, the races for U S. Senate and governor
Speaker 1: are still too early to call. Democratic Senator Mark Kelly
Speaker 1: Leeds Republican Blake Masters by five point six percentage points.
Speaker 1: Democrat Katie Hobbs was one point four points ahead of
Speaker 1: Republican Kerry Lake in the governor's race. Vice President Kamala
Speaker 1: Harris will be filling in for many of President Joe
Speaker 1: Biden's traditional duties on this Veteran's Day. Biden will be
Speaker 1: in Egypt at the UN Climate Conference and meeting with
Speaker 1: Southeast Asian leaders in Cambodia, and then to a G
Speaker 1: twenty summit in Indonesia. Today, Harris will deliver remarks at
Speaker 1: Arlington Cemetery and lay a wreath at the tomb of
Speaker 1: the unknown Soldier. In the NHL, the Devils won in
Speaker 1: overtime against the Senators for three. The Rangers and Bruins
Speaker 1: also won. The Islanders lost in the NBA the Wizards
Speaker 1: one Thursday Night football. The Panthers beat the Falcon Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quicktake, powered by more than under journalist and analysts
Speaker 1: more than countries. Michael Barr and this is Bloomberg Amy
Speaker 1: all right, thank you, Michael. It is five forty nine
Speaker 1: on Wall Street Lie from the Bloomberg Interactive Broker Studios.
Speaker 1: This is Bloomberg Daybreak, keeping an eye on markets and
Speaker 1: the response to yesterday's CPI data futures building on yesterday's
Speaker 1: historic rally. But is that rally for real? Eric Friedman's
Speaker 1: chief investment officer at US Bank Asset Management Group and
Speaker 1: joins US Now, So, Eric, is yesterday's rally for real?
Speaker 1: Do you think this might be a bear market rally?
Speaker 1: I mean, we put this more in the beer market
Speaker 1: rally camp than a more sustainable rally. The reasons for that,
Speaker 1: as we do think that ultimately this spoils down to
Speaker 1: economic performance next year, and we also think that there's
Speaker 1: gonna be risk to earnings revisions coming down. We do
Speaker 1: think that there's a bias for companies to be a
Speaker 1: little skittish on guidance right now. That's why we don't
Speaker 1: think that the numbers have come in as much as
Speaker 1: they need to. So this is something that probably have
Speaker 1: some legs in the near terms, so that we think
Speaker 1: that there's probably some resistance around for the SMP. But
Speaker 1: we do think ultimately the economy slowing down earnings coming
Speaker 1: down will be a bigger story as we turn the
Speaker 1: page into next year. So you think we might retest
Speaker 1: the lows, I think that the lows being retested maybe
Speaker 1: a little bit premature. We do think that, you know,
Speaker 1: we were just a thirty six hundred, not two, not
Speaker 1: too long ago, but our biases that markets are probably lower,
Speaker 1: not higher. I do think that the catalyst to get
Speaker 1: retest to the lows would be number one, that earnings
Speaker 1: revisions I just mentioned that would be the first party,
Speaker 1: but the other would be more persistent inflation. So the
Speaker 1: message from literally eight days ago from Shara Pole was
Speaker 1: was just again take us seriously. We are in a
Speaker 1: in a tightening mode. And so if we do see
Speaker 1: that persistence of inflation, which we think is probably gonna
Speaker 1: gonna happen, that you could see a retests. We don't
Speaker 1: get to happen anytime soon, but it's probably more of
Speaker 1: an early Q one story as opposed to something eminent
Speaker 1: the next couple of weeks. The market has been betting
Speaker 1: that the CPI data is going to help cool the
Speaker 1: FEDS aggressive rate hikes. Is the market getting it right?
Speaker 1: We think the market is in the very near term.
Speaker 1: Was was a bit overly barish um so anything that
Speaker 1: was even on the whispered number heading into the CPI
Speaker 1: print yesterday perceived to be better than expected. So I
Speaker 1: do think that the persistence of inflation is really the
Speaker 1: thing the market has to focus on next. Yes, we
Speaker 1: may be in this this peaking formation right now, but
Speaker 1: the durability of inflation we think will be a bigger story.
Speaker 1: That's what we think is going to keep the Fed
Speaker 1: more focused on rates higher for longer, as opposed to
Speaker 1: trying to guess when exactly CPI or PPI or the
Speaker 1: measures may actually top out. So we do think that
Speaker 1: some incremental improvement is a good thing, but we need
Speaker 1: to know several more prints like we saw yesterday before
Speaker 1: saying that you know what inflation is actually tame. The
Speaker 1: other thing and point out is that in terms of
Speaker 1: the the absolute level of where the Fed may make
Speaker 1: hap interest rates, in the words, the goal they have
Speaker 1: for their terminal rate, that's still very much in question
Speaker 1: again the volatility of the last couple of days. We
Speaker 1: saw that terminal rate build from five two down to
Speaker 1: four point eight yesterday in a in a very short
Speaker 1: period of time. So I think the market is still
Speaker 1: trying to figure out is it more important than we
Speaker 1: focus on peak inflation or the durability of inflation. We
Speaker 1: think ultimately durability is more important than peak. That's why
Speaker 1: we think the Fed will be a little more stringent
Speaker 1: on interest rates than the market currently. Thanks, and uh,
Speaker 1: I just very quickly got about a half a minute here. Uh,
Speaker 1: let's talk about the mid terms, the election. Those votes
Speaker 1: are still being counted, raises. You have to be decided
Speaker 1: has the market priced in the outcome of the election.
Speaker 1: Is that a factor? It's not a huge factor any
Speaker 1: The biggest thing is that the debt ceiling is a
Speaker 1: big deal that's gonna be more of a political football
Speaker 1: for next year. We don't think that the tax policy
Speaker 1: is going to really move, so you know, probably death
Speaker 1: ceiling the biggest catalysts. But you know, most stuff is
Speaker 1: priced in, most of the sector stuff is levant, but
Speaker 1: the headline basis, we think that it's larger than PRISTI. Yes,
Speaker 1: all right, Eric Friedman, chief investment Officer at US Bank
Speaker 1: Asset Management Group, Karen all right, Amy, thank you. It
Speaker 1: is currently five fifty three on Wall Street. Time for
Speaker 1: the Bloomberg Law Report. Let's get to the legal stories
Speaker 1: we're watching this morning. From Bloomberg's Jeff Bellinger. Meta platforms
Speaker 1: escaped to trademark infringement lawsuit. Federal judge in San Francisco
Speaker 1: rule that metas infinity loop is not similar in shape
Speaker 1: or color to a logo used by a Swiss blockchain group.
Speaker 1: A lobster industry group from Maine asked the d C
Speaker 1: Circuit to reverse a lower court ruling the tightened fishing
Speaker 1: restrictions in order to protect whales. Two of three plaintiffs
Speaker 1: and a wage suit against Alta Beauty will have to
Speaker 1: submit their claims to arbitration. Bloomberg Law Everything you need,
Speaker 1: all on one legal research platform, including Guiding Analysis and
Speaker 1: Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. Harry, Jeff, Thanks, Now,
Speaker 1: another legal story we're watching. The Supreme Court has signal
Speaker 1: that may open a new avenue for companies and people
Speaker 1: to fight off complaints by the Securities and Exchange Commission
Speaker 1: and the Federal Trade Commission. The Justices are considering whether
Speaker 1: those facing agency claims can go straight to federal court,
Speaker 1: with constitutional challenges, including attacks on the use of in
Speaker 1: house judges to handle cases. For more of Bloomberg's doing,
Speaker 1: Grosso speaks to Jonathan Macy, a professor at he A
Speaker 1: Law School. In a Supreme Court ruling invalidated similar protections
Speaker 1: for members of the public company accounting oversight board. So
Speaker 1: why wouldn't this just fall along that line. That's a
Speaker 1: great question. I think it's probably will actually, but there's
Speaker 1: you know, certain small differences in the underlying legislation, and
Speaker 1: so we have separate proceedings for the SEC and the FCC.
Speaker 1: I think it's likely to go the same way. You know,
Speaker 1: the SEC and the SEC can litigate and often do
Speaker 1: litigated court. And one of the things that bothers a
Speaker 1: lot of people about the use of these administrative courts
Speaker 1: is the fear that when the FTC or the sec
Speaker 1: believe they have weaker cases, they take them to the
Speaker 1: administrative courts where they have an easier path to victory.
Speaker 1: You know, I think that justices seem to be fairly
Speaker 1: skeptical of, you know, the propriety or the legitimacy of
Speaker 1: these administrative hearings. Has the Supreme Court been sort of
Speaker 1: chipping away at the federal administrative state with a line
Speaker 1: of decisions? Definitely if this is another and an important
Speaker 1: fast and of a general feeling I think on the
Speaker 1: part of the conservative justices on the Court that the
Speaker 1: administrative state has sort of run amuck since the Night
Speaker 1: the thirties. There's been just a general, you know, incrematous
Speaker 1: rise in the breadth and power of the administrative state,
Speaker 1: and you know, the lawmaking power of unelected, unaccountable bureaucrats,
Speaker 1: and conservatives are concerned about that hasn't gotten worse. I
Speaker 1: think that's just sort of a sense that there's just
Speaker 1: been a relentless expansion of the power of the administrative state.
Speaker 1: I think that's the concern. Is there a middle ground,
Speaker 1: because Justice Kavanov indicated that he read the courts precedents
Speaker 1: as offering a narrow way to resolve the cases. Is
Speaker 1: that possible? It might be, I mean, you know that.
Speaker 1: The bottom line, though, is that there's either going to
Speaker 1: be some you know, immediate appeal by litigants from these
Speaker 1: administrative courts or there isn't. So there's limited room, I
Speaker 1: think for a middle ground, just in terms of trying
Speaker 1: to figure out a narrow set of paces in which
Speaker 1: there would be a right to an immediate appeal before
Speaker 1: the litigation is concluded. And I think that's what Kavanaugh
Speaker 1: was searching for. And that's sound of that. Macy, a
Speaker 1: professor at Yale Law School, speaking with the Bloomberg's June Grosso.
Speaker 1: Catch more of that interview, plus analysis of the latest
Speaker 1: legal news by subscribing to the Bloomberg Law Podcast are
Speaker 1: downloading the show at Bloomberg dot com slash podcast. Attorneys
Speaker 1: can find exceptional legal research and business development tools at
Speaker 1: Bloomberg Law dot com and on the Bloomberg terminal at
Speaker 1: b Law. Go s andp futures of seventeen points this morning.
Speaker 1: Down futures have a hundred thirties seven and nasdag futures
Speaker 1: of seventy three and again no trading on the US
Speaker 1: bond market today and observance and the Veterans Day holiday,
Speaker 1: and still ahead on Bloomberg Daybreak, we have a check
Speaker 1: off the business headlines and all the news you need
Speaker 1: to start your day. And this is Bloomberg