WEBVTT - Bloomberg Daybreak: November 11, 2022 - Hour 1 (Radio) 0:00:02.360 --> 0:00:05.680 Live from the Bloomberg Interacted Berger Studios. This is Bloomberg 0:00:05.720 --> 0:00:09.200 day Break for Friday, November eleven two. Coming up this 0:00:09.240 --> 0:00:13.960 shour Stocks followed Yesterday's powerful rally with war games Chinese 0:00:13.960 --> 0:00:17.160 in Hong Kong. Stocks search after Beijing is is quarantine 0:00:17.239 --> 0:00:20.560 rules at the X dot COM's assets are frozen by 0:00:20.600 --> 0:00:23.800 authorities in the Bahamas and Elon Musk lawrence of a 0:00:23.880 --> 0:00:27.840 possible bankruptcy at Twitter. New York City Mayor Adams defends 0:00:27.840 --> 0:00:30.720 his focus on crime. Plus the remnants of Hurricane Nicole 0:00:30.880 --> 0:00:33.920 leave at least two people dead in Florida. Michael Barr 0:00:34.080 --> 0:00:37.080 More ahead, I'm John Stashower. In sports, mid third period 0:00:37.120 --> 0:00:39.440 for the Rangers to win. In Detroit, the Islanders were 0:00:39.520 --> 0:00:41.599 shot out. The Devils won their eighth in a row. 0:00:42.640 --> 0:00:46.839 That's all straight ahead on Bloomberg day Break on Bloomberg eleven, 0:00:46.960 --> 0:00:51.599 Free on New York, Bloomberg Washington, d C, Bloomberg one 0:00:51.680 --> 0:00:56.000 or six one, Boston, Bloomberg nine sixty, San Francisco, Sirius 0:00:56.200 --> 0:00:59.760 XM one nineteen and around the world on Bloomberg Radio. 0:01:00.160 --> 0:01:09.000 Come and via the Bloomberg Business Set. Good Friday morning. 0:01:09.040 --> 0:01:12.000 I'm Amy Morris and I'm Karen Moscow in US. Dock 0:01:12.080 --> 0:01:14.880 Index futures are higher this morning here coming up to 0:01:14.959 --> 0:01:16.640 five oh one on Wall Street, and we checked the 0:01:16.640 --> 0:01:19.640 markets every fifteen minutes throughout the trading day on Bloomberg 0:01:19.720 --> 0:01:21.959 right now, S and P futures up twenty three points. 0:01:22.200 --> 0:01:24.880 DAL futures have one hundred seventy six and as day 0:01:25.000 --> 0:01:27.959 futures have one hundred one. There is no trading on 0:01:28.000 --> 0:01:30.920 the bond market today and observance of the Veterans Day holiday. 0:01:31.160 --> 0:01:33.960 Nine X screwde oil is up two point eight percent, 0:01:34.200 --> 0:01:38.479 Amy Karen, US futures are building on yesterday's historic rally. 0:01:38.560 --> 0:01:40.679 The S and P five hundred, coming off of five 0:01:40.720 --> 0:01:43.200 and a half percent, game for the best first day 0:01:43.240 --> 0:01:47.000 reaction to a CPI report since at least two thousand three, 0:01:47.080 --> 0:01:50.480 when records began. Headline inflation came in at seven point 0:01:50.600 --> 0:01:54.720 seven percent. That's the lowest since January. DoD Cioca is 0:01:54.760 --> 0:01:59.200 CEO at Covar Capital. You think what ended the bear 0:01:59.320 --> 0:02:03.040 market top two weeks ago, it's when the FED came 0:02:03.040 --> 0:02:05.680 out of the press conference. So if the Fed now 0:02:05.760 --> 0:02:09.320 and in the redemester being one of the head hawks, 0:02:09.560 --> 0:02:12.720 is talking a little less strongly the market. Way take 0:02:12.800 --> 0:02:15.720 that as a higher probability that this may not be 0:02:16.440 --> 0:02:18.760 a bear market bounce, but something start of the next 0:02:18.800 --> 0:02:22.639 legable market. Despite the rally k of our capitals, Dougs 0:02:23.320 --> 0:02:28.040 notes the sp is still down this year. Well, Amy, 0:02:28.080 --> 0:02:30.919 we saw an immediate reaction and FED funds future is 0:02:30.960 --> 0:02:34.400 following the report. Rates traders now see just a half 0:02:34.440 --> 0:02:37.200 point rate hike next month instead of another three quarter 0:02:37.280 --> 0:02:40.000 point increase. The Fed appears to be backing a down 0:02:40.040 --> 0:02:43.040 shift in rate hikes. And here's Dallas FED President Lorie 0:02:43.080 --> 0:02:46.919 Logan and Philadelphia Fed President Patrick Harker what. I believe 0:02:46.960 --> 0:02:49.000 it may be appropriate to slow the pace of rate 0:02:49.040 --> 0:02:52.440 increases so we can better assess how financial and economic 0:02:52.440 --> 0:02:56.160 conditions are evolving. I also believe a slower pace should 0:02:56.200 --> 0:02:59.959 not be taken to represent easier policy the upcoming month, 0:03:00.040 --> 0:03:03.560 to light of the Kumlici fighting we have achieved, I 0:03:03.600 --> 0:03:06.760 expect we will slow the pace of our rate hikes 0:03:06.880 --> 0:03:10.560 as we approach a sufficiently restrictive stance. But I want 0:03:10.600 --> 0:03:13.600 to be clear a rate hike of fifty basis points, 0:03:13.800 --> 0:03:17.840 which still be significant. Philadelphia Fed President Patrick Harker and 0:03:17.919 --> 0:03:20.880 Dallas Fed Sheef of Lori Logan spoke at separate events 0:03:21.040 --> 0:03:25.240 yesterday after the latest inflation reading. The softer consumer price 0:03:25.280 --> 0:03:28.880 brined coupled with China's move to eastern COVID rules, fueled 0:03:28.880 --> 0:03:32.200 a rally in Asia. Overnight starts in the region jumped 0:03:32.240 --> 0:03:35.640 by the most since March. Let's get the recap from 0:03:35.680 --> 0:03:39.080 Bloomberg's Juliet Sally. In Singapore, Good Morning, Juliette, Good Morning 0:03:39.080 --> 0:03:41.840 Avian Karen. The m c I Asia Pacific Index climbed 0:03:41.840 --> 0:03:43.760 more than four and a half percent, also on track 0:03:43.840 --> 0:03:46.920 for its best weekly gain since March twenty twenty. Hong 0:03:47.000 --> 0:03:50.720 Kong's benchmark search more than seven percent after China reduced 0:03:50.760 --> 0:03:55.160 its quarantine time for inbound travelers and scrapped COVID flat suspensions, 0:03:55.200 --> 0:03:58.120 adding to the positive sentiment around top leaders calling for 0:03:58.160 --> 0:04:02.200 a more targeted approach to controlling the coronavirus Regionally, chipmakers 0:04:02.200 --> 0:04:04.920 also saw that drove benchmarks in Taiwan, South Korea and 0:04:05.000 --> 0:04:07.560 Japan highm and local currency has got to boost as 0:04:07.600 --> 0:04:09.600 the dollus off at its worst day since two thousand 0:04:09.640 --> 0:04:12.720 and nine, the Korean one jumping the most since October 0:04:12.720 --> 0:04:16.599 two thousand and eight. In Singapore, Juliette Sally Bloomberg Daybreak, 0:04:16.839 --> 0:04:19.359 Very juliet Thanks in Europe today we have data on 0:04:19.400 --> 0:04:21.880 the British economy g d P and the UK shrank 0:04:21.880 --> 0:04:24.400 in the third quarter, marking the startup was expected to 0:04:24.440 --> 0:04:28.320 be a protracted recession. Gross domestic product fell two tenths 0:04:28.320 --> 0:04:31.840 of one percent. Consumers spending in business investment both fell. 0:04:32.120 --> 0:04:34.960 The Bank of England sees a recession persisting into the 0:04:35.000 --> 0:04:39.880 middle of and new developments this morning involving FTX, dot 0:04:39.920 --> 0:04:43.040 Com and the crypto collapse that it sparked. A securities 0:04:43.040 --> 0:04:45.839 regulator in the Bahamas has now frozen the assets of 0:04:45.880 --> 0:04:49.040 ft X and related parties. We get more from Bloomberg's 0:04:49.080 --> 0:04:52.240 Doug Krisner. The Bahamas Securities Commission said a freeze was 0:04:52.279 --> 0:04:55.520 the prudent course of action to preserve assets and stabilize 0:04:55.520 --> 0:04:59.400 the company, and an attorney has been appointed provisional liquidator 0:04:59.720 --> 0:05:04.280 as commission aims to place the beleaguered crypto exchange into receivership. 0:05:04.600 --> 0:05:08.200 The Commission also said it's aware of statements suggesting client's 0:05:08.240 --> 0:05:13.039 assets were mishandled, mismanaged, and or transferred to Alameda Research. 0:05:13.400 --> 0:05:16.200 Alameda is the trading house at the heart of bankmn 0:05:16.240 --> 0:05:19.479 Freed's digital asset Empire. He is the founder and CEO 0:05:19.720 --> 0:05:22.840 of ft X dot Com based in the Bahamas in 0:05:22.920 --> 0:05:25.560 New York. I'm Doug Prisoner, Bloomberg day Break. All right, Doug, 0:05:25.600 --> 0:05:28.559 thank you about Twitter is in the spotlight once again 0:05:28.600 --> 0:05:31.440 today Bloomberg News has learned that Elon Musk is telling 0:05:31.480 --> 0:05:35.040 employees that bankruptcy is a possibility for the company. We 0:05:35.160 --> 0:05:38.200 get the story from Bloomberg Shirley Pellett. Word came in 0:05:38.279 --> 0:05:41.640 his first address to Twitter employees since buying the company 0:05:41.680 --> 0:05:45.440 for forty four billion dollars. The social network has a 0:05:45.560 --> 0:05:48.680 significant debt burden from the acquisition and has seen a 0:05:48.760 --> 0:05:52.719 pullback from some advertisers that are concerned about Musk's plans 0:05:52.760 --> 0:05:56.640 for content moderation. Musk also told staff on the call 0:05:56.760 --> 0:05:59.800 that the days of free food and other perks are 0:06:00.040 --> 0:06:04.080 over at Twitter's offices in New York. Charlie Pellets Bloombird 0:06:04.120 --> 0:06:06.960 day Break. Thank you, Charlie. One other note on Twitter, 0:06:07.040 --> 0:06:10.840 the social media network has reinstated official badges for high 0:06:10.839 --> 0:06:15.080 profile accounts to combat a growing problem of users impersonating 0:06:15.120 --> 0:06:19.000 major brands. The gray badge reappeared below the profiles of 0:06:19.040 --> 0:06:22.640 businesses and major media outlets this morning, and Alet's get 0:06:22.640 --> 0:06:24.560 you have to date on politics Amy and the race 0:06:24.600 --> 0:06:28.600 for the Senate control still undecided three days after the election. 0:06:28.920 --> 0:06:31.800 All comes down to three states counts and ongoing in 0:06:31.839 --> 0:06:34.560 Arizona and Nevada. And the race in Georgia is going 0:06:34.600 --> 0:06:37.920 to a runoff in December. President Biden says Democrats face 0:06:38.040 --> 0:06:40.400 long odds to keep control of the House, but says 0:06:40.440 --> 0:06:44.839 it's not impossible. Oh you know if still is staw 0:06:46.120 --> 0:06:49.640 like broad Gardge spirits there stole. Republicans are on page 0:06:49.640 --> 0:06:51.520 to win at least two hundred ten seats so far 0:06:51.560 --> 0:06:54.799 compared to Democrats one ninety two. Two hundred eighteen seats 0:06:54.800 --> 0:06:57.480 are required for a majority. And it is a blow 0:06:57.520 --> 0:07:00.160 for the Biden administration. Of Federal Judge and Texas has 0:07:00.520 --> 0:07:03.599 struck down the president's plan to forgive student loans. The 0:07:03.680 --> 0:07:06.560 judge called it one of the largest exercises of legislative 0:07:06.600 --> 0:07:09.960 power without congressional authority in the history of the country. 0:07:10.320 --> 0:07:12.760 Justice says it will appeal. The plan is already on 0:07:12.880 --> 0:07:23.360 hold under an emergency state. This is Bloomberg. It's five 0:07:23.360 --> 0:07:25.560 oh seven on Wall Street. Let's bring in Michael Barr 0:07:25.600 --> 0:07:27.200 with more on what else is going on in New 0:07:27.280 --> 0:07:30.320 York and around the world. Good morning, Michael, Good morning Amy. 0:07:30.400 --> 0:07:33.280 New York City Mayor Eric Adams says he won't stop 0:07:33.320 --> 0:07:37.080 talking about crime. Pushing back on criticism that he helped 0:07:37.160 --> 0:07:40.360 fuel the momentum of Republican candidates across the state in 0:07:40.400 --> 0:07:43.800 the midterm elections, Adam says that the system is broken 0:07:43.840 --> 0:07:47.160 and no one wanted to hear that. Adams later spoke 0:07:47.160 --> 0:07:50.400 at a community event on public safety. He talked about 0:07:50.400 --> 0:07:54.240 removing the homeless off the streets. When I started in January, 0:07:54.400 --> 0:07:57.560 I went out and visited those camps and those encampments, 0:07:57.640 --> 0:08:01.600 and I saw inside there was in humane human waste, 0:08:01.640 --> 0:08:05.800 stale food, dirty clothing, drug pal phernalia. Some people will 0:08:05.880 --> 0:08:10.720 buy folk by Polo schizophrenic. That is inhumane to allow 0:08:10.800 --> 0:08:12.880 people to live that way. And I said, as the 0:08:12.880 --> 0:08:16.200 mayor of this city, is not happening under our watch. 0:08:16.520 --> 0:08:20.080 Republican candidate seized upon crime as a central issue in 0:08:20.120 --> 0:08:23.720 the mid terms, including Representative Lee Zelden, who ran closer 0:08:23.720 --> 0:08:27.200 than expected in his failed bids unseat New York's Democratic 0:08:27.200 --> 0:08:30.800 Governor Kathy Hokel. President Biden left last night for his 0:08:30.920 --> 0:08:34.560 foreign country tour. The President will be joining world leaders 0:08:34.559 --> 0:08:38.320 in Egypt next week for the United Nations Global Climate Summit, 0:08:38.440 --> 0:08:42.920 also known as COP Meanwhile, the bilateral meeting between President 0:08:42.960 --> 0:08:45.880 Shi Jing Ping and Joe Biden has been set for 0:08:45.880 --> 0:08:49.960 the sidelines of the G twenty early next week, Bloomberg said. 0:08:49.960 --> 0:08:53.960 Baxter reports. US National Security Adviser Jake Sullivan says the 0:08:54.080 --> 0:08:58.360 US will brief Taiwanese officials before and after the President's 0:08:58.360 --> 0:09:02.280 talk they sit down Monday. Sullivan says, face to face, 0:09:02.400 --> 0:09:03.920 he will get to sit in the same room with 0:09:03.960 --> 0:09:07.160 Shi Jimping, be directed straightforward with him as he always is, 0:09:07.200 --> 0:09:09.880 and expect the same in return from she, and then 0:09:09.920 --> 0:09:12.319 he can make his judgments on that basis about how 0:09:12.320 --> 0:09:15.640 to take things forward. Sullivan says he's confidence Taipei will 0:09:15.640 --> 0:09:18.920 feel secure about its support from the United States. Sullivan 0:09:19.040 --> 0:09:22.839 repeated the US Commitment to Taiwan Relations Act and Peace 0:09:22.880 --> 0:09:26.120 and Stability in the Strait. In San Francisco, I'm at 0:09:26.120 --> 0:09:29.920 Baxter Bloomberg Daybreak. Tropical depression Nicole is in Georgia this 0:09:29.960 --> 0:09:32.880 morning after a day of causing havoc in Florida as 0:09:32.880 --> 0:09:36.400 a hurricane and then a tropical storm Nicole had cut 0:09:36.440 --> 0:09:40.080 across central Florida after making landfall near Vero Beach. The 0:09:40.120 --> 0:09:42.720 storm caused at least two deaths and sent homes along 0:09:42.760 --> 0:09:46.280 Florida's coast toppling into the ocean. Global News twenty four 0:09:46.320 --> 0:09:49.360 hours a day on air and on Bloomberg Quick Take, 0:09:49.640 --> 0:09:52.560 powered by more than twenty seven hundred journalists and analysts 0:09:52.559 --> 0:09:55.040 and more than a hundred twenty countries. I'm Michael Barr, 0:09:55.040 --> 0:09:58.000 and this is Bloomberg Amy. All right, thank you, Michael. 0:10:01.000 --> 0:10:03.120 It's five ten on Wall Street. Time now for the 0:10:03.160 --> 0:10:05.720 sports report. Rocks do you by tri State OUTI here's 0:10:05.760 --> 0:10:08.319 John dash Our saying me. The Rangers went to Detroit 0:10:08.480 --> 0:10:10.280 having recently lost to the Red Wings, part of a 0:10:10.320 --> 0:10:12.160 three game losing speak and they trailed to to one. 0:10:12.200 --> 0:10:15.160 It was to to third period of the Rangers errupted 0:10:15.320 --> 0:10:18.160 six goals and ten and a half minutes, six different 0:10:18.160 --> 0:10:21.199 goal scorers, Rangers one, eight to two. Islanders shot out 0:10:21.200 --> 0:10:24.240 by Arizona to nothing. Devil's stay hot in overtime with 0:10:24.320 --> 0:10:35.000 Ottawa power play, game winner for the Devils at the 0:10:35.160 --> 0:10:38.480 winning street is at eight. His radio call him a Nico. 0:10:38.640 --> 0:10:41.360 He shear Tippin for the fourth three victory. Nike boss 0:10:41.360 --> 0:10:45.520 Phil Knight says his company likely ending its relationship with Kyrie. Irving, 0:10:45.520 --> 0:10:48.160 now serving a suspension with the Nets posting to the 0:10:48.200 --> 0:10:51.680 anti semitic video, was refused to apologize. Although NBA Commissioner 0:10:51.760 --> 0:10:54.160 Adam Silver, who recently met with Irvine, told The New 0:10:54.200 --> 0:10:57.360 York Times he does not believe Irving anti semitic. Lebron 0:10:57.480 --> 0:11:00.160 James wants an Irving teammate, said he should be out 0:11:00.200 --> 0:11:02.559 to play. Lebron said the requirements the Nets have put 0:11:02.640 --> 0:11:06.960 in place for reinstatement are excessive. NFL Carolina being Atlanta 0:11:07.480 --> 0:11:11.360 fifteen Panthers at three and seven, Falcons are four and six. 0:11:11.360 --> 0:11:14.679 The entire NFC South is under five hundred, as opposed 0:11:15.080 --> 0:11:16.880 to the Jets division the a f C East, where 0:11:16.920 --> 0:11:19.640 everyone is over five hundred. Jets are office Make Giants 0:11:19.640 --> 0:11:22.840 Sunday host Houston Giants also in a tough division, battling 0:11:22.960 --> 0:11:26.800 Dallas and unbeaten Philadelphia. As for Washington, the problems there continue, 0:11:26.840 --> 0:11:30.400 the DC Attorney General finding a civil lawsuit against the 0:11:30.440 --> 0:11:32.679 team in order Dan Snyder, as well as Roger Goodell 0:11:32.760 --> 0:11:35.920 in the NFL for covering up and deceiving fans of 0:11:35.920 --> 0:11:39.400 what was going on in a toxic workplace. Recently indications 0:11:39.440 --> 0:11:42.559 Snyder maybe finally looking to sell the team. John dash Howard, 0:11:42.559 --> 0:11:46.200 Bloomberg Sports, AM all right, thank you, John. Let's check 0:11:46.240 --> 0:11:49.280 the futures now. S andb features up a half percent 0:11:49.400 --> 0:11:53.680 at nineteen point seven five points down, futures up at nastack, 0:11:53.800 --> 0:11:57.560 futures up eighty four. The decks in Germany of four 0:11:57.600 --> 0:12:00.520 tenths of apresent, cak in Paris of sixtenth sever percent, 0:12:00.559 --> 0:12:03.560 foots in London down three tenths of a percent. This 0:12:03.679 --> 0:12:08.880 is Bloomberg. The Bloomberg Sports Report was brought to you 0:12:08.880 --> 0:12:10.920 by Audie. Don't let someone else drive off in the 0:12:10.960 --> 0:12:13.560 Audi model that you've always wanted. Visit your local Tri 0:12:13.679 --> 0:12:16.200 state autie dealer to get behind the wheel of yours today, 0:12:16.280 --> 0:12:22.640 or visit autie Offers dot com for more information, markets, 0:12:22.760 --> 0:12:25.800 headlines and breaking news twenty four hours a day at 0:12:25.840 --> 0:12:29.760 Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quicktake. 0:12:30.040 --> 0:12:38.960 This is a Bloomberg Business lash find I'm Cameron. Moscow 0:12:39.000 --> 0:12:42.000 and US stock index futures and European shares are rallying 0:12:42.080 --> 0:12:45.560 as they euphoria over falling inflation in the world's largest 0:12:45.559 --> 0:12:48.600 economy extends into a second day, and China relaxes some 0:12:48.679 --> 0:12:51.800 COVID restrictions. We checked the markets every fifteen minutes throughout 0:12:51.800 --> 0:12:55.199 the trading day. On Bloomberg, SNP futures up about twenty 0:12:55.240 --> 0:12:57.520 five points down futures of A hundred seventy three and 0:12:57.600 --> 0:13:00.760 NASDACK futures have one hundred six that ecs in Germany's 0:13:00.840 --> 0:13:03.839 up about half percent. No trading on the bond market 0:13:03.880 --> 0:13:06.839 today and observance of the Veterans Day holiday. NIMEX Screwed 0:13:06.880 --> 0:13:09.360 oil is a three point four percent, up two dollars 0:13:09.480 --> 0:13:11.760 ninety four cents at eighty nine dollars forty one cents 0:13:11.800 --> 0:13:14.160 of barrel comics gold up nine tenths per cent or 0:13:14.160 --> 0:13:17.520 fifteen dollars eighties cents at seventeen sixty nine forty announced. 0:13:17.880 --> 0:13:20.720 The euro one point two seven four against the dollar, 0:13:20.760 --> 0:13:23.400 British found one point one seven six five and again 0:13:23.480 --> 0:13:25.920 one thirty nine point one eight and looking at bitcoint 0:13:25.920 --> 0:13:29.040 it's down three point two percent at seventeen thousand, two 0:13:29.120 --> 0:13:32.080 hundred dollars And as a Bloomberg business flash, now here's 0:13:32.120 --> 0:13:34.640 Michael Barr with more on what's going on around the world. 0:13:34.760 --> 0:13:38.839 Michael could good morning. A fast moving missile has struck 0:13:38.880 --> 0:13:41.440 an apartment building in the south of the Ukraine. People 0:13:41.440 --> 0:13:45.239 in Michelaive woke to find the building in ruins. Rescuers 0:13:45.320 --> 0:13:48.520 raced with the same digging through debris for survivors. A 0:13:48.559 --> 0:13:51.840 federal judge in Texas struck down the Biden administration sweeping 0:13:51.880 --> 0:13:55.599 student loan forgiveness plan. US District Judge Mark Pittman and 0:13:55.640 --> 0:13:58.320 a pointee of President Trump called it one of the 0:13:58.400 --> 0:14:02.760 largest exercises of legislative power without congressional authority in the 0:14:02.840 --> 0:14:06.120 history of the United States. In the NHL, the Devil's 0:14:06.160 --> 0:14:09.720 won in overtime against the Senators for three. The Rangers 0:14:09.720 --> 0:14:12.960 and Bruins also won. The Islanders lost. In the NBA 0:14:13.120 --> 0:14:17.000 the Wizards. One Thursday Night football, the Panthers beat the Falcons. 0:14:18.679 --> 0:14:21.480 Global News twenty four hours a day on air and 0:14:21.680 --> 0:14:25.640 on Bloomberg Quicktake, powered by more than d journalist and 0:14:25.640 --> 0:14:28.320 analysts more than a hundred twenty countries. I'm Michael Barr. 0:14:28.440 --> 0:14:31.160 This is Bloomberg Gaming. All right, Thank you, Michael. It 0:14:31.280 --> 0:14:34.200 is five nineteen on Wall Street Live from the Bloomberg 0:14:34.200 --> 0:14:37.720 Interactive Broker Studios. This is Bloomberg Daybreak. We're joined now 0:14:37.760 --> 0:14:41.560 by global market strategists Ben Leidler with Toro. Ben. Good 0:14:41.560 --> 0:14:43.360 morning to you. Thank you for taking the time with 0:14:43.440 --> 0:14:46.120 us today. We are watching the markets. Is this a 0:14:46.160 --> 0:14:50.880 bear market rally we're seeing? Yes, I think it is, 0:14:50.960 --> 0:14:53.200 but I think it's very well supported and and this 0:14:53.240 --> 0:14:56.640 is stet one right that. Um, I think we've seen 0:14:56.640 --> 0:15:00.120 the bottom and off has happened, and we're beginning to 0:15:00.160 --> 0:15:03.760 sort of see the inflation fever breaking. And this is 0:15:03.840 --> 0:15:06.560 sort of the necessary precondition I think to set us 0:15:06.640 --> 0:15:09.120 up for the next bull market. I don't think we're 0:15:09.160 --> 0:15:11.560 quite there yet, but I do think we're beginning to 0:15:11.560 --> 0:15:15.760 build those necessary foundations. Well that's a that's good news. 0:15:15.840 --> 0:15:19.080 Then if you're talking about eliminating inflation or at least 0:15:19.080 --> 0:15:22.360 crawling out of that inflation spike, how much longer could 0:15:22.440 --> 0:15:24.960 this last as far as the bear market before it 0:15:24.960 --> 0:15:29.360 actually becomes full? So this is our fifth bear market 0:15:29.440 --> 0:15:32.640 rally of the year. Historically you've seen up to ten, 0:15:33.040 --> 0:15:34.560 so we could well have a sort of a few 0:15:34.560 --> 0:15:36.200 more to go. But I do think the key is 0:15:36.240 --> 0:15:38.680 that with the bottom in here, this is a very 0:15:38.720 --> 0:15:41.960 investable market, and the next big move I think we'll 0:15:42.000 --> 0:15:44.240 be up rather than down. And I think, you know, 0:15:44.320 --> 0:15:47.560 Christmas is definitely coming early. We've seen less bad third 0:15:47.600 --> 0:15:50.600 quarter earnings. We've got valuations which are now follow average 0:15:50.640 --> 0:15:53.880 after the sell off this year, We've got wild cards 0:15:53.920 --> 0:15:58.200 like China improving, and now we've beginning to see um 0:15:58.280 --> 0:16:01.200 inflation easing, and we're beginning to see the top of 0:16:01.240 --> 0:16:03.760 this sort of Fed interest rate cycle. We're not there yet. 0:16:03.800 --> 0:16:05.960 There's a long way to go, but but again these 0:16:06.000 --> 0:16:09.120 are sort of very positive early signs. When you say 0:16:09.160 --> 0:16:11.320 there's a long way to go, do you see this 0:16:11.360 --> 0:16:14.520 as sort of an incremental over a long term, a 0:16:14.560 --> 0:16:16.920 little bit at a time, crawling out of this, or 0:16:16.960 --> 0:16:21.000 do you see it a little bit faster. I think 0:16:21.000 --> 0:16:23.320 this is two steps forward. Once they're back, you know, 0:16:23.360 --> 0:16:26.320 we need much lower inflation and a start of Fed 0:16:26.400 --> 0:16:28.840 interest rate cuts, not just a sort of view of 0:16:28.920 --> 0:16:30.560 the top of the cycle. So I think, you know, 0:16:30.640 --> 0:16:34.720 that's all a story for later in three but markets 0:16:34.760 --> 0:16:36.880 sort of, you know, move up on incremental information. We're 0:16:37.000 --> 0:16:40.440 very depressed, UM investor sentiments very poor, and again these 0:16:40.480 --> 0:16:42.960 are sort of the first steps in the right direction 0:16:42.960 --> 0:16:44.760 and the markets reacting to that. I think the big 0:16:44.800 --> 0:16:48.200 relief rally you saw yesterday tells us three very important things. 0:16:48.560 --> 0:16:53.120 One that it's all about inflation, to how depressed investors are, 0:16:53.720 --> 0:16:56.880 and three that you need to be invested um to 0:16:57.000 --> 0:16:59.920 capture these sort of market moves when when they do 0:17:00.000 --> 0:17:04.159 stopped moving up. Let's shift just a little bit away 0:17:04.200 --> 0:17:06.920 from inflation and look at the election in the mid terms. 0:17:06.960 --> 0:17:09.280 I'm wondering if the markets also priced in the outcome 0:17:09.320 --> 0:17:12.119 of the election. Those are still beingcountered, some races are 0:17:12.200 --> 0:17:14.239 yet to be decided. Is that going to have more 0:17:14.280 --> 0:17:19.280 of an impact as we learn more maybe a little 0:17:19.320 --> 0:17:21.920 bit so you know, actually firm up the election results 0:17:21.920 --> 0:17:24.440 and as we probably get gridlock. I think the short 0:17:24.520 --> 0:17:27.040 term impact there is a is a small positive. That's 0:17:27.080 --> 0:17:29.719 one less thing for markets to worry about. And if 0:17:29.720 --> 0:17:32.200 you look at the historic data, market sort of rewarded 0:17:32.800 --> 0:17:36.160 rewarded gridlock um. But but again, I think the bigger 0:17:36.240 --> 0:17:39.119 story is the fundamentals. What's happening inflation, what's happening with 0:17:39.200 --> 0:17:43.080 earnings um, and also seasonality. I mean, as I say, 0:17:43.160 --> 0:17:46.520 Christmas is coming early November December, traditionally your best months 0:17:46.520 --> 0:17:49.399 of the year as investors sort of look ahead to 0:17:49.760 --> 0:17:52.719 the year ahead. And I think that's particularly important after 0:17:53.160 --> 0:17:55.920 the sort of unparalleled losses we've had in both equities 0:17:55.960 --> 0:17:58.919 and bonds this year. I think the outlook for three 0:17:59.240 --> 0:18:01.440 is apts lutely for a less bad year, and I 0:18:01.480 --> 0:18:03.960 would expect this sort of year end effects to be 0:18:04.080 --> 0:18:06.320 quite powerful this year as investors look ahead for that, 0:18:07.400 --> 0:18:09.159 as we look ahead to that. As far as cooling 0:18:09.160 --> 0:18:11.720 off the Fed's aggressive rate hikes, when will they pivot? 0:18:11.760 --> 0:18:16.560 When can we see that? So step one is to slowdown, um, 0:18:16.640 --> 0:18:18.600 and it could could well come. For the December meeting. 0:18:18.680 --> 0:18:21.080 We we stepped down from seventy five basis point hikes 0:18:21.080 --> 0:18:24.080 the fifty basis point hikes. That's that one. Step two 0:18:24.160 --> 0:18:26.280 is they actually pause. I think that's the first quarter 0:18:27.320 --> 0:18:30.000 three story. And then step three, which I think is 0:18:30.040 --> 0:18:31.879 the catalyst for the next bull market, is when they 0:18:31.880 --> 0:18:34.480 actually start cutting interest rate. We may need to wait 0:18:34.520 --> 0:18:36.040 longer for that, you know, right to the end of 0:18:36.119 --> 0:18:39.480 next year, but markets are gonna start discounting that before 0:18:39.520 --> 0:18:44.480 it actually happens. Are there any sectors you like? So? 0:18:44.520 --> 0:18:46.160 I think the story for now is to be invested 0:18:46.160 --> 0:18:48.560 but reasonably defensive as they say, this is going to 0:18:48.640 --> 0:18:51.520 be two steps forward, one step back. So you know, healthcare, 0:18:51.600 --> 0:18:55.119 high dividends UM. You know, more defensive international markets by 0:18:55.160 --> 0:18:58.119 the UK UM. And you know, as we get more 0:18:58.200 --> 0:19:01.240 validation than the inflations coming down, we get closer to 0:19:01.280 --> 0:19:04.560 these interest rate cuts UM start adding, you know, more 0:19:04.640 --> 0:19:08.000 risk of the portfolios that's tech, that's real estate, things 0:19:08.000 --> 0:19:10.879 like financials. Are there any X factors we need to 0:19:10.920 --> 0:19:13.040 be watching for a goat about thirty seconds here in 0:19:13.080 --> 0:19:18.359 the next few weeks, it's gonna remain a volatile ride inflation. 0:19:18.560 --> 0:19:19.960 You know, we're not out of the woods yet, that 0:19:20.040 --> 0:19:22.919 that inflection point is sort of coming, but it's again 0:19:23.280 --> 0:19:25.600 it's going to be a rocky road. And the reminder 0:19:25.680 --> 0:19:28.680 yesterday it's all about inflation. So just just keep watching that. 0:19:28.680 --> 0:19:31.240 That's driving the FED, that's driving recession and learnings risk. 0:19:31.720 --> 0:19:33.399 Now we're gonna keep watching it with you. Thank you 0:19:33.480 --> 0:19:35.119 so much for taking the time with us to this 0:19:35.160 --> 0:19:39.080 Friday morning. Global market strategists Ben Laidler with E Toro 0:19:39.440 --> 0:19:42.640 watching the markets with us. Look looking at the futures now, 0:19:42.720 --> 0:19:45.760 SMP futures up twenty one, DAL futures up one, DRED 0:19:45.800 --> 0:19:50.159 sixty points. NASDAK futures up eight five points, DAX in 0:19:50.240 --> 0:19:53.040 Germany up four tenths of a percent, CAC in Paris 0:19:53.119 --> 0:19:55.560 up five tenths of a percent. Foot See in London 0:19:55.760 --> 0:19:58.040 down four tenths of a percent. Much more to come 0:19:58.280 --> 0:20:01.399 on this Friday morning edition of Berg Daybreak. This is 0:20:01.400 --> 0:20:10.040 Bloomberg Bloomberg eleven three oh weather becoming rady and breezy today. 0:20:10.080 --> 0:20:12.600 We're going up to seventy degrees, down to six five 0:20:12.680 --> 0:20:15.000 the rain and Wednesday with us tonight and tomorrow. The 0:20:15.080 --> 0:20:17.360 rain ends in the morning with a sunny afternoon going 0:20:17.440 --> 0:20:25.919 up to seventy Broadcasting live from the Bloomberg Interactive Broker 0:20:26.040 --> 0:20:29.440 Studio in New York, Bloomberg E Living Freedom to Washington, 0:20:29.520 --> 0:20:33.600 d C. Bloomberg to Boston, Bloomberg one O six one 0:20:33.720 --> 0:20:37.160 to San Francisco, Bloomberg now sixty to the country Sirius 0:20:37.320 --> 0:20:39.919 XM Chad A one nine and around the globe the 0:20:39.920 --> 0:20:43.840 Bloomberg Business app in Bloomberg Radio dot Com. This is 0:20:43.840 --> 0:20:52.960 Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 0:20:53.000 --> 0:20:55.400 I may be Morris and I'm Karen Moscow. We are 0:20:55.440 --> 0:20:57.880 just about four hours away from the open of US 0:20:57.960 --> 0:20:59.600 trading must get you up to date on the news 0:20:59.680 --> 0:21:01.919 you need to know at this hour. US future is 0:21:01.960 --> 0:21:04.560 building on yesterday's games, which saw the S and P 0:21:04.760 --> 0:21:08.199 five hundreds surge more than five percent. Slowing inflation was 0:21:08.240 --> 0:21:12.040 a catalyst, but Investment Co Chief investment Officer Dana Daria 0:21:12.200 --> 0:21:15.240 conscience there's still a bumpy road ahead. The FED is 0:21:15.359 --> 0:21:17.920 a lot more concerned about a stop and go policy 0:21:18.040 --> 0:21:21.200 error than they are about pushing a little too hard. Still, 0:21:21.520 --> 0:21:24.600 all else, Equel, I think you still should be prepping 0:21:24.640 --> 0:21:28.680 for potentially top conditions investments. Dana Daria says the likelihood 0:21:28.680 --> 0:21:31.439 of recession next year is still high. It is not 0:21:31.600 --> 0:21:34.600 clear of October CPI print will flow the FED space 0:21:34.640 --> 0:21:38.199 of tightening. San Francisco FED President Mary Daily addressed that 0:21:38.280 --> 0:21:41.880 issue yesterday. Stepping down is an appropriate thing to think about. 0:21:42.000 --> 0:21:44.720 I support a more gradual approach of getting to and 0:21:44.760 --> 0:21:47.280 so we can be discovering the right rate as we go. 0:21:47.840 --> 0:21:50.840 San Francisco FED President Mary Daily one of three officials 0:21:50.840 --> 0:21:54.080 signaling a downshift in right hikes as possible. On new 0:21:54.119 --> 0:21:58.040 crypto developments this morning, I focused on FTX dot Com 0:21:58.080 --> 0:22:00.560 maybe as securities regulator in the Bahama US has now 0:22:00.640 --> 0:22:04.359 frozen the company's amsets. The crypto exchange Binance head trying 0:22:04.400 --> 0:22:07.240 to acquire f t X, but the deal fell through. Now, 0:22:07.240 --> 0:22:10.560 Finance CEO c z Jaw is addressing the matter from 0:22:10.560 --> 0:22:13.080 a technology or product perspective. They don't have anything that 0:22:13.119 --> 0:22:16.440