1 00:00:03,160 --> 00:00:06,439 Speaker 1: Live from the Bloomberg Interactive Brokers Studios. This is is Bloomberg 2 00:00:06,519 --> 00:00:10,360 Speaker 1: day Break for Thursday, October two. Coming up this hour, 3 00:00:10,600 --> 00:00:14,520 Speaker 1: stocks drop by concerned strong inflation and hawkish monetary policy 4 00:00:14,560 --> 00:00:16,800 Speaker 1: will further hit growth. We hear from two more FETE 5 00:00:16,800 --> 00:00:20,040 Speaker 1: officials about the path of rate heights. Tesla shares fall 6 00:00:20,079 --> 00:00:23,079 Speaker 1: at sales misestimates and they take it to London. Wheleass 7 00:00:23,120 --> 00:00:26,439 Speaker 1: trust his government looks close to in floating. Justice Department 8 00:00:26,480 --> 00:00:29,880 Speaker 1: prosecutors believe they have enough evidence to George Donald Trump. 9 00:00:29,920 --> 00:00:33,159 Speaker 1: Plus doctors are concerned about children and R s V. 10 00:00:33,960 --> 00:00:36,960 Speaker 1: Michael blah More ahead, I'm John Stashower and sports. The 11 00:00:37,040 --> 00:00:39,720 Speaker 1: Yankees lost Game one of the Alcs and used to 12 00:00:39,840 --> 00:00:45,040 Speaker 1: the Nixon Nets. Both lost their season opener. That's All's 13 00:00:45,040 --> 00:00:48,680 Speaker 1: train ahead on Bloomberg day Break on Bloomberg eleven three, 14 00:00:48,680 --> 00:00:53,000 Speaker 1: on New York Bloomberg nine one, Washington d C, Bloomberg 15 00:00:53,000 --> 00:00:56,720 Speaker 1: one oh six one, Boston Bloomberg nine sixties and Francisco 16 00:00:57,160 --> 00:01:00,880 Speaker 1: Syrius Exam one nineteen and around the world on Bloomberg 17 00:01:00,960 --> 00:01:07,960 Speaker 1: Radio dot Com and via the Bloomberg Business App. Good morning, 18 00:01:07,959 --> 00:01:11,360 Speaker 1: I'm Nathan Hagar, and I'm Karen Moscow futures are lower 19 00:01:11,440 --> 00:01:13,240 Speaker 1: this morning. We're coming up to five oh one on 20 00:01:13,280 --> 00:01:15,440 Speaker 1: Wall Street, and we check the markets every fifteen minutes 21 00:01:15,440 --> 00:01:18,119 Speaker 1: throughout the trading day. On bloomberg S and P Future 22 00:01:18,160 --> 00:01:20,959 Speaker 1: is down about nineteen points down. Future is down forty 23 00:01:20,959 --> 00:01:24,440 Speaker 1: four NASDAC features down nineties seven. The decks in Germany's 24 00:01:24,480 --> 00:01:27,160 Speaker 1: down eight tenths of upper sent ten year treasury down 25 00:01:27,200 --> 00:01:30,440 Speaker 1: six thirty seconds, yield four point one five percent. They 26 00:01:30,480 --> 00:01:32,960 Speaker 1: yield on a two year four point five nine percent 27 00:01:33,360 --> 00:01:35,399 Speaker 1: nine next screw an oil up one point six percent 28 00:01:35,400 --> 00:01:38,080 Speaker 1: of a dollar thirty six and eighty six cents of 29 00:01:38,120 --> 00:01:41,399 Speaker 1: barrel comics call that will changed at sixteen thirty four 30 00:01:41,560 --> 00:01:45,280 Speaker 1: twenty announced and the euro point nine two against the dollar. 31 00:01:45,440 --> 00:01:48,520 Speaker 1: Nathan Karen. This morning's drop in futures comes after stocks 32 00:01:48,520 --> 00:01:51,560 Speaker 1: snapped a two day winning streak on Wall Street. Treasury 33 00:01:51,600 --> 00:01:54,560 Speaker 1: yields are trading your multi year highs. On Mountain concern, 34 00:01:54,600 --> 00:01:56,640 Speaker 1: a hawk ish Fed will raise the odds of a 35 00:01:56,720 --> 00:02:00,200 Speaker 1: hard landing market. Veteran Dennis Gartman says don't expect the 36 00:02:00,240 --> 00:02:03,120 Speaker 1: Fed the change course anytime soon. So one. Once the 37 00:02:03,160 --> 00:02:06,639 Speaker 1: Fed begins to change its policies, it moves rates farther 38 00:02:07,080 --> 00:02:10,079 Speaker 1: and lasts longer than anybody ever wants to anticipate. When 39 00:02:10,120 --> 00:02:12,680 Speaker 1: they when they ease monetary policy, they take rate slower 40 00:02:12,760 --> 00:02:15,720 Speaker 1: than anybody believes for a longer period of time. When 41 00:02:15,760 --> 00:02:18,280 Speaker 1: they tighten, they take rates higher for a longer period 42 00:02:18,320 --> 00:02:20,720 Speaker 1: of time than anybody wants to anticipate. I think it's 43 00:02:20,720 --> 00:02:23,960 Speaker 1: going to be at least until late in maybe four 44 00:02:24,040 --> 00:02:27,760 Speaker 1: before the long awaited pivot occurs. Dennis Gartman, the former 45 00:02:27,800 --> 00:02:30,280 Speaker 1: publisher of The Garment Letter, thinks stocks will remain in 46 00:02:30,280 --> 00:02:33,000 Speaker 1: a bear market for some time. Well, Nathan, it will 47 00:02:33,040 --> 00:02:35,840 Speaker 1: be another busy day for Feds speak with four different 48 00:02:35,880 --> 00:02:39,520 Speaker 1: officials talking at separate events. Yesterday's Chicago Fed President Charles 49 00:02:39,520 --> 00:02:42,360 Speaker 1: Evans said he's hopeful the current path for interest rates 50 00:02:42,520 --> 00:02:46,000 Speaker 1: will be enough to bring down inflation. Wages are going up, 51 00:02:46,040 --> 00:02:48,560 Speaker 1: and that's not that's not a bad thing, but if 52 00:02:48,600 --> 00:02:52,120 Speaker 1: it gets caught up in costs price uh, you know, 53 00:02:52,240 --> 00:02:54,880 Speaker 1: spiral that that would be bad. And so making sure 54 00:02:54,960 --> 00:02:58,480 Speaker 1: that we've got monetary policy at a sufficiently restrictive stance 55 00:02:58,480 --> 00:03:01,400 Speaker 1: so that we're not seen inflation. We're trying to get 56 00:03:01,400 --> 00:03:04,600 Speaker 1: it down. Chicago Fed President Charles Evans and his colleagues 57 00:03:04,600 --> 00:03:07,640 Speaker 1: have aggressively raised benchmark interest rates this year from nearly 58 00:03:07,800 --> 00:03:10,839 Speaker 1: zero to just above three percent, and expect another big 59 00:03:10,919 --> 00:03:13,919 Speaker 1: rate increase in next month's meeting. Karen we spoke about 60 00:03:13,919 --> 00:03:16,680 Speaker 1: the move with Federal Reserve Bank of St. Louis President 61 00:03:16,800 --> 00:03:20,960 Speaker 1: James Bullard. The November meeting has been more or less 62 00:03:20,960 --> 00:03:25,320 Speaker 1: priced in the market at at the seventy five basis 63 00:03:25,360 --> 00:03:28,959 Speaker 1: point number. Again, you know, I think you do want 64 00:03:28,960 --> 00:03:30,920 Speaker 1: to wait till you actually get to the meeting, see 65 00:03:30,919 --> 00:03:34,240 Speaker 1: what the situation is there. The December meeting is a 66 00:03:34,240 --> 00:03:38,120 Speaker 1: little farther away. We will have more data at that point. St. 67 00:03:38,160 --> 00:03:40,600 Speaker 1: Louis FED President James Bullard made the comments in an 68 00:03:40,600 --> 00:03:43,680 Speaker 1: exclusive interview with Bloomberg's Kathleen Hayes here. More of the 69 00:03:43,720 --> 00:03:46,520 Speaker 1: conversation coming up later in the program. Well, let's start 70 00:03:46,560 --> 00:03:49,120 Speaker 1: to earnings now, Nathan. We get results from nearly two 71 00:03:49,160 --> 00:03:51,920 Speaker 1: dozen companies in the S and P five D today. 72 00:03:52,000 --> 00:03:55,640 Speaker 1: Disappointing numbers from Tesla after the bell has shares down 73 00:03:55,760 --> 00:03:59,160 Speaker 1: six percent this morning. Sales fell short of estimates, and 74 00:03:59,200 --> 00:04:03,200 Speaker 1: that's being blamed delivery and production bottlenecks. Still. CEO Elon 75 00:04:03,280 --> 00:04:06,600 Speaker 1: Musk says demand for his company's cars remains strong. We're 76 00:04:06,600 --> 00:04:09,320 Speaker 1: looking forward to a record breaking pupil, so it really 77 00:04:09,440 --> 00:04:11,320 Speaker 1: you know, knock on wood, it looks like we'll have 78 00:04:11,360 --> 00:04:14,640 Speaker 1: an epic end of her and Elon must says. Tesla 79 00:04:14,720 --> 00:04:18,000 Speaker 1: could repurchase five to ten billion dollars of its shares, 80 00:04:18,240 --> 00:04:21,760 Speaker 1: subject to board approval and review. The stock has lost 81 00:04:21,800 --> 00:04:24,080 Speaker 1: more than a third of its value so far this year. 82 00:04:24,440 --> 00:04:27,279 Speaker 1: It is a different story at IBM this morning, Karen, 83 00:04:27,320 --> 00:04:31,320 Speaker 1: the company reported better than expected sales and affirmed its 84 00:04:31,360 --> 00:04:34,680 Speaker 1: cash flow forecast. And let's say that's as signed. Demand 85 00:04:34,680 --> 00:04:38,440 Speaker 1: for software mainframe computers and hybrid cloud services remains study 86 00:04:38,839 --> 00:04:41,720 Speaker 1: well in Asia. Overnight, Nathan stocks fell but came off 87 00:04:41,720 --> 00:04:45,000 Speaker 1: their lowest levels. That's after Bloomberg News reported China is 88 00:04:45,120 --> 00:04:48,960 Speaker 1: considering relaxing quarantine rules. Let's get the recap from Bloomberg's 89 00:04:49,000 --> 00:04:52,359 Speaker 1: Juliette Sally in Singapore. Good morning, Juliette, Good morning Nathan 90 00:04:52,360 --> 00:04:54,480 Speaker 1: and Karen the off show. You one gained from record 91 00:04:54,520 --> 00:04:57,120 Speaker 1: lows against the greenback on the news, Well, China cs 92 00:04:57,120 --> 00:05:00,680 Speaker 1: I three hundred erased earlier losses. Chinese Xox in Hong 93 00:05:00,760 --> 00:05:03,479 Speaker 1: Kong also paired earlier steep losses. On news. China is 94 00:05:03,480 --> 00:05:07,080 Speaker 1: holding emergency talks with chip firms after US curbs. The 95 00:05:07,080 --> 00:05:10,839 Speaker 1: Ossi dollar declined as hiring down under almost stalled in September, 96 00:05:10,880 --> 00:05:14,200 Speaker 1: and Japan's benchmark bond yield climbed above the Central Banks 97 00:05:14,200 --> 00:05:18,440 Speaker 1: policy ceiling, prompting monetary authorities to announce an unscheduled bond 98 00:05:18,520 --> 00:05:22,080 Speaker 1: purchase to rain it back in In Singapore, juliet Sally 99 00:05:22,200 --> 00:05:25,320 Speaker 1: Bloomberg Daybreak, Juliette Thanks in Europe this morning, It's all 100 00:05:25,360 --> 00:05:28,560 Speaker 1: about politics. UK Prime Minister Liz Trust's government could be 101 00:05:28,600 --> 00:05:30,720 Speaker 1: on the brink of collapse. Let's go to Learning and 102 00:05:30,839 --> 00:05:33,159 Speaker 1: the LAist Life with Bloomberg's U and Parts. Good Morning, 103 00:05:33,839 --> 00:05:36,359 Speaker 1: Good morning, Nathan and Karen. It has been a chaotic 104 00:05:36,520 --> 00:05:39,200 Speaker 1: twenty four hours at Westminster. One of the most senior 105 00:05:39,240 --> 00:05:42,240 Speaker 1: members of the British government has been fired. As she went, 106 00:05:42,360 --> 00:05:45,000 Speaker 1: she criticized the Prime Minister and accused list Trust of 107 00:05:45,120 --> 00:05:49,120 Speaker 1: breaking key pledges. Later, dramatic scenes in Parliament with the 108 00:05:49,200 --> 00:05:52,480 Speaker 1: ports of lawmakers man handled into voting with the governments. 109 00:05:52,920 --> 00:05:55,080 Speaker 1: Just weeks after she took over. Many members of our 110 00:05:55,120 --> 00:05:58,479 Speaker 1: own Conservative Party are openly saying they want Liz Trust 111 00:05:58,600 --> 00:06:02,159 Speaker 1: to go. Who would replace is another question in London, 112 00:06:02,560 --> 00:06:05,040 Speaker 1: Paul Daybreak, all right, you and thank you. Now to 113 00:06:05,120 --> 00:06:08,560 Speaker 1: the latest in the war in Ukraine. President Vladimir'szlenski is 114 00:06:08,600 --> 00:06:11,640 Speaker 1: now urging people to use as little electricity as possible. 115 00:06:11,880 --> 00:06:14,440 Speaker 1: He says Russia has destroyed much of the country's power 116 00:06:14,560 --> 00:06:18,920 Speaker 1: infrastructure with Iranian made explosive drones. Ukraine is assembling its 117 00:06:18,960 --> 00:06:21,720 Speaker 1: own army of drones to monitor the front lies. It's 118 00:06:21,800 --> 00:06:24,480 Speaker 1: enlisted actor Mark Hamill to help bring it together through 119 00:06:24,600 --> 00:06:28,239 Speaker 1: Ukraine's United twenty four fundraising arm The Star Wars actor 120 00:06:28,320 --> 00:06:31,400 Speaker 1: tells Bloomberg President Zelenski asked him to join the effort 121 00:06:32,000 --> 00:06:37,919 Speaker 1: very simply. Ukraine needs drones, and you know they define 122 00:06:38,040 --> 00:06:42,360 Speaker 1: war outcomes. They are They protect their land, their people there, 123 00:06:42,839 --> 00:06:45,880 Speaker 1: They monitor the border, their their eyes in the sky. 124 00:06:46,440 --> 00:06:49,480 Speaker 1: Mark Hamill's spoke of our Washington correspondent Joe Matthew on 125 00:06:49,560 --> 00:06:52,720 Speaker 1: Bloomberg Sound on Catch the Show weekdays at five pm 126 00:06:52,760 --> 00:06:56,160 Speaker 1: Eastern on Bloomberg Radio, and I said, futures right now 127 00:06:56,200 --> 00:06:59,760 Speaker 1: are down seventeen points now, futures down twenty four, nastac 128 00:06:59,800 --> 00:07:02,760 Speaker 1: few tchers are lower by ninety two points ten. Your 129 00:07:02,800 --> 00:07:05,520 Speaker 1: treasuries down five thirty seconds, the old four point one 130 00:07:05,640 --> 00:07:07,600 Speaker 1: five percent, you old on the two year four point 131 00:07:07,680 --> 00:07:10,680 Speaker 1: five eight and NIMEX screwed right now is up one 132 00:07:10,760 --> 00:07:14,640 Speaker 1: point six percent at eighty six dollars of barrel. Straight ahead, 133 00:07:14,680 --> 00:07:17,560 Speaker 1: your latest local headlines, and a check of sports. This 134 00:07:18,400 --> 00:07:25,000 Speaker 1: is Bloomberg five oh seven on Wall Street. Were forty 135 00:07:25,040 --> 00:07:27,800 Speaker 1: five degrees in Central Park on an overturned vehicle on 136 00:07:27,840 --> 00:07:30,840 Speaker 1: the westbound l I E. It's by Utopia Parkway. Details 137 00:07:30,880 --> 00:07:33,360 Speaker 1: coming up in traffic. First, Michael Bars here with what 138 00:07:33,440 --> 00:07:35,440 Speaker 1: else is going on in New York and around the world. 139 00:07:35,520 --> 00:07:38,360 Speaker 1: Good morning Michael, Good morning Nathan. A group of Justice 140 00:07:38,400 --> 00:07:42,160 Speaker 1: Department prosecutors believe there is sufficient evidence to charge Donald 141 00:07:42,200 --> 00:07:46,040 Speaker 1: Trump with obstruction of justice. Bloomberg. Sources say they are 142 00:07:46,120 --> 00:07:49,400 Speaker 1: building other cases as well. Sources say they believe all 143 00:07:49,520 --> 00:07:52,080 Speaker 1: charges should be complete by the end of the year. 144 00:07:52,640 --> 00:07:55,680 Speaker 1: Former President Trump has finished his deposition in the case 145 00:07:55,840 --> 00:07:58,840 Speaker 1: brought by a woman who claims he's sexually assaulted her 146 00:07:59,000 --> 00:08:01,800 Speaker 1: and then to fame their online saying she was a liar. 147 00:08:02,400 --> 00:08:06,000 Speaker 1: Trump has claimed the entire defamation lawsuits should be dismissed 148 00:08:06,240 --> 00:08:09,200 Speaker 1: because he was president and was immune to charges. In 149 00:08:09,360 --> 00:08:12,200 Speaker 1: New York Trump once again said E. Gene Carroll was 150 00:08:12,320 --> 00:08:16,200 Speaker 1: lying and quote not his type. Former Vice President Mike 151 00:08:16,280 --> 00:08:19,160 Speaker 1: Penn said he would not necessarily vote for Donald Trump 152 00:08:19,240 --> 00:08:23,480 Speaker 1: if he runs for president in Pennce has been visiting 153 00:08:23,560 --> 00:08:27,120 Speaker 1: early voting states, fueling speculation he might run for president. 154 00:08:27,600 --> 00:08:31,360 Speaker 1: At an appearance at Georgetown University, a student aspens if 155 00:08:31,400 --> 00:08:33,439 Speaker 1: you would vote for his former running mate in the 156 00:08:33,480 --> 00:08:37,840 Speaker 1: next presidential election. If Donald Trump is the Republican nominee 157 00:08:37,920 --> 00:08:46,880 Speaker 1: for president in twent trench fool, will you vote for him? Well, 158 00:08:46,960 --> 00:08:50,199 Speaker 1: there might be somebody else I'd prefer more. The former 159 00:08:50,280 --> 00:08:53,839 Speaker 1: Vice president predicted Republican wins in the midterm elections, but 160 00:08:54,040 --> 00:08:57,520 Speaker 1: took veiled jabs at candidates who run on opposition to 161 00:08:57,640 --> 00:09:02,200 Speaker 1: Democrats without offering policy alternate Hospitals and at least twenty 162 00:09:02,320 --> 00:09:05,120 Speaker 1: six states and the District of Columbia say they are 163 00:09:05,160 --> 00:09:09,640 Speaker 1: struggling with a surge and pediatric respiratory illnesses like RSV, 164 00:09:09,960 --> 00:09:13,360 Speaker 1: flu and the common cold. The early wave of infections 165 00:09:13,480 --> 00:09:17,000 Speaker 1: is raising alarm bells for children's healthcare teams as flu 166 00:09:17,120 --> 00:09:21,520 Speaker 1: season approaches. Connecticut Children's Hospital physician in chief Dr Juan 167 00:09:21,600 --> 00:09:25,000 Speaker 1: Salazar says two years of pandemic measures may have left 168 00:09:25,120 --> 00:09:30,120 Speaker 1: kids immune systems unprepared for the unusual respiratory viruses, which 169 00:09:30,160 --> 00:09:36,120 Speaker 1: has dramatically altered the normal epidemiology of this virus RSC specifically, 170 00:09:36,640 --> 00:09:40,079 Speaker 1: and the other viruses rhinovirus, adnovirus and the introvirus which 171 00:09:40,120 --> 00:09:43,440 Speaker 1: have been We're more severe than they normally are. Dr 172 00:09:43,520 --> 00:09:46,440 Speaker 1: Salazar says the timing is off generally. This is something 173 00:09:46,520 --> 00:09:49,520 Speaker 1: seen in late winter early spring. Global News twenty four 174 00:09:49,559 --> 00:09:52,040 Speaker 1: hours a day on air and on Bloomberg Quick Take, 175 00:09:52,080 --> 00:09:54,600 Speaker 1: powered by more than twenty seven hundred journalists analysts more 176 00:09:54,600 --> 00:09:57,480 Speaker 1: than a hundred twenty countries. Michael bar this is Bloomberg, Nathan, 177 00:09:57,600 --> 00:10:04,520 Speaker 1: Thank you, Michael. Coming up to five Tan on Wall Street. 178 00:10:04,520 --> 00:10:06,240 Speaker 1: Time for the Bloomberg Sports Updade, brought to you by 179 00:10:06,280 --> 00:10:09,079 Speaker 1: Try State Outie. Here's John stan Shower, Thanks Nathan. The 180 00:10:09,120 --> 00:10:12,000 Speaker 1: Alcs underway and Houston. Good start for the Yankee second 181 00:10:12,040 --> 00:10:15,880 Speaker 1: any whole run for Harrison. Beata continues to provide surprising power. 182 00:10:16,000 --> 00:10:19,040 Speaker 1: His fourth homer of the postseason. Astros tied it up 183 00:10:19,080 --> 00:10:21,440 Speaker 1: in Game one was one one sixth inning OH two 184 00:10:21,920 --> 00:10:24,480 Speaker 1: and Gary L. Frank sits left. Stanton is going back 185 00:10:24,600 --> 00:10:28,600 Speaker 1: at the wall looking up Sailetta and the Lantrys. Crofter 186 00:10:28,760 --> 00:10:32,120 Speaker 1: boxing for Uli Guriel and the Astros lead at two 187 00:10:32,160 --> 00:10:35,839 Speaker 1: to one. They'll pitch to McCormick. It's ash Rives a 188 00:10:35,880 --> 00:10:38,600 Speaker 1: pretty heat to right center, just going back at the wall, 189 00:10:38,760 --> 00:10:44,160 Speaker 1: looking up, kiss a goodbye chas McCormick coast Tea and 190 00:10:44,320 --> 00:10:47,360 Speaker 1: the Astros go up three to one. K B m 191 00:10:47,480 --> 00:10:49,920 Speaker 1: E both home runs hit off Clark Schmidt and in 192 00:10:50,120 --> 00:10:53,280 Speaker 1: later Jeremy Paenia homer off Rankie Mantas. The Astros one 193 00:10:53,360 --> 00:10:56,319 Speaker 1: for to two, remained unbeaten in the postseason. Thirty nine 194 00:10:56,360 --> 00:10:58,760 Speaker 1: year old Justin Burlander gave up that Beder home run 195 00:10:58,800 --> 00:11:02,000 Speaker 1: and only two other hits. He struck out eleven in two. Tonight, 196 00:11:02,080 --> 00:11:04,440 Speaker 1: Luis Sevreno on the mound for the Yankster San Diego. 197 00:11:04,520 --> 00:11:07,560 Speaker 1: The Phillies, having won the NLCS opener to nothing, led 198 00:11:07,600 --> 00:11:09,600 Speaker 1: for nothing, but the Padres came back to within eight 199 00:11:09,679 --> 00:11:12,240 Speaker 1: to five. Five on fifth and he wants Soto had 200 00:11:12,240 --> 00:11:14,960 Speaker 1: a big hit and so did Padres. Capture Austin Nola. 201 00:11:15,360 --> 00:11:17,880 Speaker 1: He was facing his brother. Nicks and Nets both lost 202 00:11:17,920 --> 00:11:20,679 Speaker 1: their openers in different fashion. Tight game in Memphis after 203 00:11:20,720 --> 00:11:23,720 Speaker 1: the Knicks rallied from nineteen down, but the Grizzlies pulled 204 00:11:23,760 --> 00:11:26,920 Speaker 1: it out in overtime one fifteen, one twelve. John Brant 205 00:11:27,000 --> 00:11:29,240 Speaker 1: thirty four points. Julius Randall led the Knicks with twenty 206 00:11:29,320 --> 00:11:31,800 Speaker 1: four rough opener for r. J. Barry shot three of 207 00:11:31,880 --> 00:11:35,360 Speaker 1: eighteen in Brooklyn. All Pelicans their stars. Zion Williamson back 208 00:11:35,400 --> 00:11:38,120 Speaker 1: after missing last season. He scored twenty five. New Orleans 209 00:11:38,200 --> 00:11:40,680 Speaker 1: won one thirty to one oh eight. Kevin Durant led 210 00:11:40,720 --> 00:11:42,679 Speaker 1: the Nets with thirty two. Kyrie you Irving shot six 211 00:11:42,800 --> 00:11:47,200 Speaker 1: of nineteen. John Stasward Bloomberg Sports, Nathan John thank USMP 212 00:11:47,360 --> 00:11:50,640 Speaker 1: futures down sixteen points, now Dal futures down eighteen nez 213 00:11:50,720 --> 00:11:54,040 Speaker 1: Deck futures lower by eighty eight points. Tesla shares down 214 00:11:54,160 --> 00:11:56,120 Speaker 1: five and a half percent in the pre market on 215 00:11:56,240 --> 00:11:59,480 Speaker 1: disappointing third quarter sales. We'll talk about the numbers next. 216 00:11:59,520 --> 00:12:03,920 Speaker 1: Ford Ives, senior equity research analyst at Wedbush Securities. This 217 00:12:04,320 --> 00:12:09,319 Speaker 1: is Bloomberg. The Bloomberg Sports Report was brought to you 218 00:12:09,440 --> 00:12:11,400 Speaker 1: by Audie. Don't let someone else drive off in the 219 00:12:11,440 --> 00:12:14,240 Speaker 1: Audi model. You've always wanted. Visit your local Tri state 220 00:12:14,280 --> 00:12:16,520 Speaker 1: Audie dealer to get behind the wheel of yours today, 221 00:12:16,679 --> 00:12:22,640 Speaker 1: or visit autie Offers dot com for more information, markets, 222 00:12:22,760 --> 00:12:25,800 Speaker 1: headlines and breaking news twenty four hours a day at 223 00:12:25,840 --> 00:12:29,760 Speaker 1: Bloomberg dot com The Bloomberg Business Outland at Bloomberg Quicktake. 224 00:12:30,040 --> 00:12:39,080 Speaker 1: This is a Bloomberg Business large and I'm Karen Moscow. 225 00:12:39,240 --> 00:12:43,040 Speaker 1: European stocks and US stock index futures are falling amid 226 00:12:43,200 --> 00:12:46,640 Speaker 1: rising von yields, with investors concerned that strong inflation and 227 00:12:46,720 --> 00:12:50,400 Speaker 1: Hakish monetary policy will further slow the global economy. We 228 00:12:50,559 --> 00:12:52,880 Speaker 1: checked the markets every fifteen minutes throughout the trading day 229 00:12:53,200 --> 00:12:56,360 Speaker 1: on Bloomberg s and p Future is down about fifteen points. 230 00:12:56,400 --> 00:12:59,920 Speaker 1: Staff futures down twelve nasdack futures down on the decks 231 00:13:00,000 --> 00:13:02,959 Speaker 1: in Germany's down six tenths of uppercent. Ten year treasury 232 00:13:03,040 --> 00:13:05,920 Speaker 1: down two thirty seconds, held four point one four percent 233 00:13:06,320 --> 00:13:08,840 Speaker 1: yield on the two year four point five eight percent. 234 00:13:09,240 --> 00:13:11,480 Speaker 1: Nimex screwed oil up one point six percent of a 235 00:13:11,520 --> 00:13:15,000 Speaker 1: dollar thirty six at eighty six cents of arrol comics 236 00:13:15,040 --> 00:13:17,160 Speaker 1: gold up two tens per cent or three dollars seventy 237 00:13:17,240 --> 00:13:20,200 Speaker 1: cents at sixteen thirty seven ninety an ounce. The euro 238 00:13:20,400 --> 00:13:23,120 Speaker 1: point nine seven eight four against the dollar, British pound 239 00:13:23,200 --> 00:13:25,760 Speaker 1: one point one eight zero and the N one forty 240 00:13:25,840 --> 00:13:28,880 Speaker 1: nine point age six, and bitcoin is down a third 241 00:13:28,920 --> 00:13:32,319 Speaker 1: of u percent at nineteen thousand, one hundred dollars. That's 242 00:13:32,320 --> 00:13:34,920 Speaker 1: a Bloomberg business flash. Now here's Michael Barr with more 243 00:13:35,000 --> 00:13:37,160 Speaker 1: on what's going on around the world. Michael, good morning, 244 00:13:37,240 --> 00:13:40,720 Speaker 1: Good morning, Karen. Russia has declared its intention to increase 245 00:13:40,760 --> 00:13:45,040 Speaker 1: its targeting of Ukraine's power, water, and other vital infrastructure 246 00:13:45,280 --> 00:13:47,960 Speaker 1: in its latest phase of the nearly eight month old war. 247 00:13:48,559 --> 00:13:52,360 Speaker 1: Ukrainian President of Voladimir Zelenski says that Moscow's forces have 248 00:13:52,559 --> 00:13:56,839 Speaker 1: destroyed thirty percent of the country's power stations since October tenth. 249 00:13:57,240 --> 00:14:00,240 Speaker 1: At least one person is dead after a sixty hard 250 00:14:00,360 --> 00:14:04,679 Speaker 1: crash in thick fall on Interstate five in Lynn County, Oregon. 251 00:14:05,200 --> 00:14:07,880 Speaker 1: Big rigs and cars were n't able to see stop 252 00:14:07,960 --> 00:14:11,120 Speaker 1: traffic in front of them. In baseball, the Yankees lost 253 00:14:11,200 --> 00:14:14,400 Speaker 1: Game one of the a LCS against the Astros four two. 254 00:14:14,840 --> 00:14:17,679 Speaker 1: In the NLCS, the Padres even the series at a 255 00:14:17,760 --> 00:14:21,440 Speaker 1: game of piece after beating the Phillies eight five. Global 256 00:14:21,520 --> 00:14:23,920 Speaker 1: News twenty four hours a day on air and on 257 00:14:24,040 --> 00:14:27,760 Speaker 1: Bloomberg Quick Take powered by more than seven hundred journalists 258 00:14:27,760 --> 00:14:30,720 Speaker 1: and analysts more than a hundred twenty countries. Michael Barr 259 00:14:30,800 --> 00:14:33,600 Speaker 1: and this is Bloomberg an Thanks Michael. It's five nineteen 260 00:14:33,640 --> 00:14:36,320 Speaker 1: on Wall Street Life from the Bloomberg Interactor Broker Studios. 261 00:14:36,400 --> 00:14:39,120 Speaker 1: This is Bloomberg Daybreak, and we continue to watch shares 262 00:14:39,200 --> 00:14:42,240 Speaker 1: of Tesla this morning, dropping about five and a half 263 00:14:42,280 --> 00:14:45,800 Speaker 1: percent in the pre market. Elon Musk's electric carmaker came 264 00:14:45,840 --> 00:14:49,440 Speaker 1: in with sales at came in short of Wall Street estimates. 265 00:14:49,520 --> 00:14:51,880 Speaker 1: Let's get more on the earnings now. Dan Ives joins 266 00:14:51,960 --> 00:14:55,920 Speaker 1: us senior analyst at web Bush Securities. Dan, it's great 267 00:14:55,960 --> 00:14:57,680 Speaker 1: to speak with you, and I know you've been bullish 268 00:14:57,800 --> 00:15:00,280 Speaker 1: on this company and the e V sector more oddly 269 00:15:00,360 --> 00:15:05,120 Speaker 1: for a long time. Here does this quarter shake your confidence? Yeah? Look, 270 00:15:05,200 --> 00:15:07,680 Speaker 1: it's been a Cinderella story for Tests of the last 271 00:15:08,120 --> 00:15:11,640 Speaker 1: three years and they're hitting a rough patch. And I 272 00:15:11,720 --> 00:15:14,840 Speaker 1: think that's what you saw last night in terms of earnings. Now, 273 00:15:14,880 --> 00:15:17,400 Speaker 1: I believe it's more of logestics and demand driven. But 274 00:15:17,560 --> 00:15:20,640 Speaker 1: for Musk, it's a moment of truth to get Testa 275 00:15:20,760 --> 00:15:23,120 Speaker 1: through this rough patch, and that's the street is going 276 00:15:23,160 --> 00:15:25,840 Speaker 1: to be digesting now, what's must need to do to 277 00:15:25,880 --> 00:15:27,720 Speaker 1: get through the rough patch. I mean he's been talking 278 00:15:27,760 --> 00:15:32,680 Speaker 1: about issues with supply chain bottlenecks, delivery difficulties for for 279 00:15:32,880 --> 00:15:37,920 Speaker 1: quite some time here, not even just before this earnings period. Yeah, 280 00:15:37,960 --> 00:15:40,720 Speaker 1: and well, Tessa has seen what other automakers are around 281 00:15:40,760 --> 00:15:43,720 Speaker 1: the world in terms of logestics issues, some battery prob 282 00:15:43,800 --> 00:15:47,160 Speaker 1: from a component perspective. But but the issue here is 283 00:15:47,280 --> 00:15:49,480 Speaker 1: the Bears are going to say this is demand driven 284 00:15:49,560 --> 00:15:53,040 Speaker 1: and that's an excuse, and and that's now this is 285 00:15:53,080 --> 00:15:55,240 Speaker 1: going to be a critical three to six months to 286 00:15:55,360 --> 00:15:58,240 Speaker 1: Tessa to show they could get their sea legs back 287 00:15:58,320 --> 00:16:01,440 Speaker 1: and start to hit that fifty saying growth target, which 288 00:16:01,480 --> 00:16:03,160 Speaker 1: looks like they're going to come unto that in Q 289 00:16:03,400 --> 00:16:05,600 Speaker 1: four and for the year. And that's why you're going 290 00:16:05,640 --> 00:16:09,040 Speaker 1: to see the negative knee jerk reaction today. How much 291 00:16:09,120 --> 00:16:12,800 Speaker 1: of a headwind is China? He called out China specifically, 292 00:16:12,920 --> 00:16:15,960 Speaker 1: saying they're in a recession of sorts in the property sector. 293 00:16:16,080 --> 00:16:21,120 Speaker 1: But there's still an ongoing risk, isn't there that potentiality 294 00:16:21,440 --> 00:16:25,760 Speaker 1: for shutdowns from COVID could affect the Shanghai factory. Yeah, 295 00:16:25,800 --> 00:16:28,560 Speaker 1: it's a great classic China it's the hearts and lungs 296 00:16:28,600 --> 00:16:31,920 Speaker 1: of the Tesla story. That's that's key, the both thesis, 297 00:16:32,520 --> 00:16:35,320 Speaker 1: and that's where they're hitting some of the issues wigistics 298 00:16:35,320 --> 00:16:38,080 Speaker 1: and even around the edges on demand. So it's a 299 00:16:38,440 --> 00:16:40,520 Speaker 1: it's really an arms hury He's going on in China 300 00:16:40,600 --> 00:16:44,320 Speaker 1: with domestic players as well as Tesla, and that's why 301 00:16:44,920 --> 00:16:47,680 Speaker 1: this is all happening as Musk is juggling all these 302 00:16:47,720 --> 00:16:51,400 Speaker 1: different balls, with Twitter of course front and center, and 303 00:16:51,520 --> 00:16:53,920 Speaker 1: I think you're starting to see a little bloom come 304 00:16:54,000 --> 00:16:56,800 Speaker 1: off the rows in terms of the way the Street 305 00:16:57,080 --> 00:17:00,120 Speaker 1: used Musk and the Tesla story, I would now just 306 00:17:00,240 --> 00:17:03,360 Speaker 1: a critical juncture. Yeah, jugglings balls is a good way 307 00:17:03,360 --> 00:17:05,200 Speaker 1: to put it. I did want to ask you about 308 00:17:05,320 --> 00:17:08,840 Speaker 1: the Twitter saga, whether that may have been more of 309 00:17:08,920 --> 00:17:12,640 Speaker 1: a distraction than even Musk might have let on, even 310 00:17:12,720 --> 00:17:17,600 Speaker 1: with all the tweeting he was doing during that buyout drama. Well, 311 00:17:17,640 --> 00:17:19,520 Speaker 1: I think that's part of the problem. You don't want 312 00:17:19,560 --> 00:17:23,680 Speaker 1: to see Musk focus shifting, and the last thing you 313 00:17:23,760 --> 00:17:26,920 Speaker 1: want to see is the Twitter situations that him just 314 00:17:27,040 --> 00:17:30,560 Speaker 1: actually focused on Tesla and then the bigger elephant in 315 00:17:30,600 --> 00:17:33,920 Speaker 1: the room continues to be Muscle more Tesla stock to 316 00:17:34,080 --> 00:17:37,879 Speaker 1: potentially fund the Twitter deal with some financing looking like 317 00:17:38,040 --> 00:17:42,000 Speaker 1: could fall apart. That is the perfect storm combined with 318 00:17:42,080 --> 00:17:45,080 Speaker 1: what we saw with the soft delivery number. What about 319 00:17:45,160 --> 00:17:49,120 Speaker 1: other products cyber truck, for example, it's been so long 320 00:17:49,400 --> 00:17:52,719 Speaker 1: since it was introduced and we still haven't seen actual 321 00:17:52,920 --> 00:17:56,399 Speaker 1: cyber trucks in the show rooms. Is that a problem? 322 00:17:57,280 --> 00:17:59,320 Speaker 1: It is a it's a boy that crowed wolf problem, 323 00:17:59,560 --> 00:18:02,840 Speaker 1: and especially at the time you need that to hit 324 00:18:02,920 --> 00:18:07,159 Speaker 1: in two thousand twenty three with GM rivan Ford and 325 00:18:07,280 --> 00:18:10,440 Speaker 1: others coming up and going ap to ev pickup trucks. 326 00:18:10,760 --> 00:18:14,959 Speaker 1: And that's why Musk No ultimately talks cheap need to execute, 327 00:18:15,080 --> 00:18:17,680 Speaker 1: and I think you're starting to see patients were thin 328 00:18:18,200 --> 00:18:22,119 Speaker 1: on some of the musk antics. Fiber truck needs to 329 00:18:22,200 --> 00:18:25,240 Speaker 1: hit over the next year, otherwise they're gonna lose share. 330 00:18:25,680 --> 00:18:27,479 Speaker 1: You got about a minute left here, Dan, We got 331 00:18:27,520 --> 00:18:30,000 Speaker 1: a lot of tech earnings to get to next week 332 00:18:30,119 --> 00:18:34,119 Speaker 1: with Apple, Amazon, Microsoft, a few others reporting. What are 333 00:18:34,160 --> 00:18:37,600 Speaker 1: you looking at. I think it's most important tech earnings 334 00:18:37,960 --> 00:18:41,440 Speaker 1: season potentially in the last two years because of what's 335 00:18:41,480 --> 00:18:45,160 Speaker 1: happened overall demand store. In terms of the macro tech 336 00:18:45,280 --> 00:18:50,240 Speaker 1: needs to prove that the resilience is their enterprise spend. Microsoft, 337 00:18:50,320 --> 00:18:52,960 Speaker 1: that's gonna be keen in terms of cloud as well 338 00:18:53,040 --> 00:18:55,840 Speaker 1: as with Amazon. And then probably the most important name 339 00:18:55,960 --> 00:18:59,800 Speaker 1: for earning season across the board, not just tech, is Apple. 340 00:19:00,400 --> 00:19:04,000 Speaker 1: What's the consumer spending on? Is the iPhone fourteen product 341 00:19:04,080 --> 00:19:06,840 Speaker 1: cycle happening? Look, I think Bart's worse in the bite 342 00:19:06,880 --> 00:19:09,000 Speaker 1: in terms of attack. I view it next weeks more 343 00:19:09,040 --> 00:19:13,000 Speaker 1: as a positive catalyst rather than something to fear. In 344 00:19:13,160 --> 00:19:16,359 Speaker 1: just ten seconds, are you sticking with the outperform on Tesla? 345 00:19:17,320 --> 00:19:20,919 Speaker 1: Sticking with outperform remains one of the most disruptive technology 346 00:19:21,000 --> 00:19:25,080 Speaker 1: companies out there, but it wasn't rainbows and roses, and 347 00:19:25,200 --> 00:19:26,960 Speaker 1: I think that's what you can see the stock down. 348 00:19:27,320 --> 00:19:30,000 Speaker 1: I think they get through the rough patch, and right 349 00:19:30,040 --> 00:19:33,000 Speaker 1: now the stock is down nearly six percent in the 350 00:19:33,080 --> 00:19:36,120 Speaker 1: pre market. Dan, i'ves web Bush security is always great 351 00:19:36,200 --> 00:19:38,000 Speaker 1: to talk with you. Thanks for joining us this morning 352 00:19:38,359 --> 00:19:41,080 Speaker 1: on Bloomberg day Break. Looking ahead to the market open, 353 00:19:41,600 --> 00:19:45,160 Speaker 1: uh NAZAC futures are leading the declines. Tesla's pretty heavy there. 354 00:19:45,240 --> 00:19:48,360 Speaker 1: Nasdack Future is down right now. Down Future is down. 355 00:19:49,320 --> 00:19:53,480 Speaker 1: SMP futures are lower by seventeen points and the tenure 356 00:19:53,560 --> 00:19:56,760 Speaker 1: treasuries down four thirty seconds for yield of four point 357 00:19:56,880 --> 00:20:08,480 Speaker 1: one five per cent. You're listening to Bloomberg Daybreak Bloomberg 358 00:20:08,520 --> 00:20:12,040 Speaker 1: eleventh three oh weather sunny, breezy, upper fifties today, low sixties, 359 00:20:12,080 --> 00:20:15,080 Speaker 1: sunny Tomorrow, will be in the upper sixties by Saturday. 360 00:20:15,440 --> 00:20:19,640 Speaker 1: Showers develop on Sunday. Right now forty five in Central Park, 361 00:20:22,240 --> 00:20:26,760 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 362 00:20:26,880 --> 00:20:30,800 Speaker 1: Bloomberg Living Freedom to Washington, d C, Bloomberg N one 363 00:20:30,960 --> 00:20:34,160 Speaker 1: to Boston, Bloomberg one O six one to San Francisco, 364 00:20:34,240 --> 00:20:37,440 Speaker 1: Bloomberg N sixteen to the country, Sirius XM to the 365 00:20:37,560 --> 00:20:40,439 Speaker 1: one nine team, and around the globe, the Bloomberg Business 366 00:20:40,840 --> 00:20:50,280 Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak and 367 00:20:50,400 --> 00:20:53,440 Speaker 1: it's thirty on Wall Street. Good morning, I'm parin Moscow. 368 00:20:53,640 --> 00:20:56,000 Speaker 1: I'm Nathan Hecker. Bloomberg Daybreak is brought to you by 369 00:20:56,160 --> 00:20:59,360 Speaker 1: se I. Built on advanced technologies in fifty years of innovation, 370 00:20:59,520 --> 00:21:04,680 Speaker 1: SEI offers asset managers a comprehensive and flexible operations outsourcing platform. 371 00:21:05,040 --> 00:21:08,399 Speaker 1: Go to se i c dot com, slash Managers and 372 00:21:08,520 --> 00:21:10,880 Speaker 1: we are just about four hours away from the open 373 00:21:10,920 --> 00:21:12,680 Speaker 1: of US training. Let's get you have to day to 374 00:21:12,720 --> 00:21:14,680 Speaker 1: the news you need to know. At this shower, US 375 00:21:14,760 --> 00:21:17,879 Speaker 1: futures are lower, adding to yesterday's losses when stocks is 376 00:21:17,920 --> 00:21:20,600 Speaker 1: snapping a two gay when stocks snapped rather a two 377 00:21:20,640 --> 00:21:24,040 Speaker 1: day winning streak. Concerns continue to swirl about hawkish FED 378 00:21:24,119 --> 00:21:27,160 Speaker 1: policy and how it will impact growth. Silver Crest Head 379 00:21:27,200 --> 00:21:30,680 Speaker 1: of Investment Policy Robert Teeter says timing will be everything. 380 00:21:31,160 --> 00:21:33,399 Speaker 1: The timeline question I think is in focus here and 381 00:21:33,440 --> 00:21:35,479 Speaker 1: it's a matter of do we get inflation under control? 382 00:21:35,560 --> 00:21:37,560 Speaker 1: Do we get the Fed pausing before you start to 383 00:21:37,600 --> 00:21:39,639 Speaker 1: see some of that pass through, whether it's lagged effects 384 00:21:39,720 --> 00:21:41,920 Speaker 1: or otherwise, onto the consumer and onto earnings. And so 385 00:21:42,080 --> 00:21:44,000 Speaker 1: that's really the race that's in place right now is 386 00:21:44,280 --> 00:21:46,880 Speaker 1: which happens first, the break in inflation or a break 387 00:21:46,920 --> 00:21:50,520 Speaker 1: in the economy. Robert Teeter with Silver Crest Downset Management 388 00:21:50,560 --> 00:21:53,520 Speaker 1: says if consumer spending days strong, it will help the 389 00:21:53,600 --> 00:21:56,440 Speaker 1: Fed bring down inflation. Now, today will be another busy 390 00:21:56,480 --> 00:21:59,520 Speaker 1: one for Fed speakers, Karen. Four different officials appear at 391 00:21:59,560 --> 00:22:03,080 Speaker 1: separative today Yesterday are Kathleen Hayes sat down with St. 392 00:22:03,160 --> 00:22:06,159 Speaker 1: Louis FED President James Bullard, who indicated there's still no 393 00:22:06,359 --> 00:22:08,840 Speaker 1: clear timeline for a FED pivot. We started off at 394 00:22:08,880 --> 00:22:11,520 Speaker 1: a very low level. That's why we've moved so fast, 395 00:22:12,119 --> 00:22:15,879 Speaker 1: so far, so quickly. But at some point we'll get 396 00:22:15,960 --> 00:22:19,200 Speaker 1: to a level that the Committee judges will be sufficient 397 00:22:19,280 --> 00:22:21,760 Speaker 1: to put meaningful downloard pressure on inflation. Then we'll be 398 00:22:21,800 --> 00:22:24,080 Speaker 1: able to adjust from there, and we'll bring you more 399 00:22:24,080 --> 00:22:26,919 Speaker 1: of our conversation with St. Louis FED President James Bullard 400 00:22:27,000 --> 00:22:29,359 Speaker 1: later in the program. Meantime, the FED gets another key 401 00:22:29,480 --> 00:22:32,000 Speaker 1: day to point this morning with weekly jobless claims. You 402 00:22:32,080 --> 00:22:34,760 Speaker 1: out at eight thirty a m. Wall Street time. Well, 403 00:22:34,840 --> 00:22:37,480 Speaker 1: let's turn to earnings now, Nathan. Nearly two dozen companies 404 00:22:37,520 --> 00:22:39,520 Speaker 1: in the S and P five d or por today 405 00:22:39,720 --> 00:22:42,600 Speaker 1: meantime shares of Tesla. They're down five and a half 406 00:22:42,680 --> 00:22:46,080 Speaker 1: percent after sales game, in short of estimates. Still, CEO 407 00:22:46,200 --> 00:22:51,359 Speaker 1: Elon Must says demand remains strong despite bottlenecks. Were enough trains? 408 00:22:51,359 --> 00:22:54,400 Speaker 1: Who weren't enough car carriers? Do you actually support the wave? 409 00:22:54,560 --> 00:22:57,320 Speaker 1: Has it got too big? And CEO Elon Must says 410 00:22:57,400 --> 00:23:00,280 Speaker 1: Tesla could repurchase up to ten billion dollars of its 411 00:23:00,320 --> 00:23:03,440 Speaker 1: share subject at board approval and review. It's a different 412 00:23:03,480 --> 00:23:05,919 Speaker 1: story at IBM this morning, Karen, that stock is up 413 00:23:06,000 --> 00:23:09,080 Speaker 1: three percent after reporting better than expected sales and affirming 414 00:23:09,119 --> 00:23:12,560 Speaker 1: its cash flow forecast. And over in Europe today, Nathan, 415 00:23:12,600 --> 00:23:16,160 Speaker 1: it's all about politics. UK Prime Minister Liz Trust's government 416 00:23:16,240 --> 00:23:18,600 Speaker 1: could be on the brink of collapse. Trust fired one 417 00:23:18,680 --> 00:23:21,879 Speaker 1: minister over security breach and two others were heard resigning 418 00:23:22,240 --> 00:23:26,080 Speaker 1: before reserving that decision. There are growing calls from her 419 00:23:26,200 --> 00:23:30,200 Speaker 1: party for Trust to resign immediately. Straight ahead your latest 420 00:23:30,280 --> 00:23:34,480 Speaker 1: local headlines plus a check of sports, and this is Bloomberg. 421 00:23:38,240 --> 00:23:41,520 Speaker 1: Thanks on Wall Street, forty five degrees in Central Park, 422 00:23:41,560 --> 00:23:45,080 Speaker 1: Gotta crash westbound Jackie Robinson Parkway, a Union Turnpike. More 423 00:23:45,119 --> 00:23:47,360 Speaker 1: coming up in traffic. First Michael Barr with what else 424 00:23:47,440 --> 00:23:49,439 Speaker 1: is going on in New York and around the world. Michael, 425 00:23:49,480 --> 00:23:51,879 Speaker 1: thank you very much, Nathan. A group of Justice Department 426 00:23:51,960 --> 00:23:56,000 Speaker 1: prosecutors believe there is sufficient evidence to challenge Donald Trump 427 00:23:56,080 --> 00:23:59,440 Speaker 1: with obstruction of justice. Bloomberg's head box to as the story. 428 00:24:00,000 --> 00:24:03,639 Speaker 1: Secutors and FBI involved in the investigations. Further, Department of 429 00:24:03,760 --> 00:24:06,800 Speaker 1: Justice feel there is now enough evidence to move forward 430 00:24:06,840 --> 00:24:10,080 Speaker 1: with a case for obstruction. Bloomberg sources say they are 431 00:24:10,240 --> 00:24:13,719 Speaker 1: building other cases though as well, but are looking at 432 00:24:13,760 --> 00:24:17,200 Speaker 1: all the angles before moving forward on them. The sources 433 00:24:17,280 --> 00:24:20,080 Speaker 1: say they feel all charges should be complete by the 434 00:24:20,240 --> 00:24:22,800 Speaker 1: end of the year, and if nothing else, they can 435 00:24:22,880 --> 00:24:27,159 Speaker 1: proceed with obstruction. In San Francisco, I'm at Baxter Bloomberg Daybreak. 436 00:24:27,320 --> 00:24:31,120 Speaker 1: President Biden is back campaigning again today, this time in Pennsylvania, 437 00:24:31,160 --> 00:24:34,360 Speaker 1: where one race could decide which party controls the US 438 00:24:34,440 --> 00:24:37,760 Speaker 1: Senate next year. The President heading back to Pittsburgh to 439 00:24:38,000 --> 00:24:42,440 Speaker 1: hindland his infrastructure plan that helped fix a bridge that 440 00:24:42,600 --> 00:24:46,560 Speaker 1: collapse their last winter. Democratic Senate candidate John Fetterman will 441 00:24:46,640 --> 00:24:49,720 Speaker 1: join him. In addition to the flu and COVID, there's 442 00:24:49,720 --> 00:24:53,119 Speaker 1: another illness kid should be mindful of. It's called r 443 00:24:53,560 --> 00:24:58,600 Speaker 1: S v. It causes running noses, decrease and appetite, coughing, sneezing, fever, 444 00:24:58,760 --> 00:25:03,840 Speaker 1: and wheezing. All Health pediatric infectious diseases specialist Dr Thomas 445 00:25:03,920 --> 00:25:07,600 Speaker 1: Murray says COVID as weak and kids immune systems not 446 00:25:07,800 --> 00:25:10,679 Speaker 1: because of the virus itself, but because kids have been 447 00:25:10,720 --> 00:25:13,480 Speaker 1: isolated for so long. I think their new system just 448 00:25:13,600 --> 00:25:17,560 Speaker 1: hasn't seen the number of viruses a typical child prior 449 00:25:17,640 --> 00:25:20,720 Speaker 1: to the pandemic would have seen. And therefore, when you 450 00:25:20,800 --> 00:25:23,600 Speaker 1: have five or six different viruses, you can become sick 451 00:25:23,720 --> 00:25:27,040 Speaker 1: with one right after the other. Dr Murray says rs 452 00:25:27,119 --> 00:25:30,560 Speaker 1: V is straining the hospital system. The US has raised 453 00:25:30,600 --> 00:25:34,159 Speaker 1: concerns with Saudi Arabia about an American citizen whom the 454 00:25:34,240 --> 00:25:37,119 Speaker 1: kingdom sentenced the sixteen years in prison for posting tweets 455 00:25:37,160 --> 00:25:40,920 Speaker 1: critical of the Saudi government. Sad Ibrahim Almani was taken 456 00:25:40,960 --> 00:25:44,440 Speaker 1: into custody last November when traveling to Ria to visit 457 00:25:44,520 --> 00:25:47,280 Speaker 1: his family. Global News twenty four hours a day on 458 00:25:47,440 --> 00:25:49,600 Speaker 1: air and on Bloomberg Quick Take, powered by more than 459 00:25:49,680 --> 00:25:52,119 Speaker 1: twenty seven hundred journalists and analysts in more than a 460 00:25:52,200 --> 00:25:55,720 Speaker 1: hundred twenty countries. I'm Michael Vard. This is Bloomberg Nathan. 461 00:25:55,840 --> 00:26:03,520 Speaker 1: Thanks Michael on Wall Street. Time for the Bloomberg Sports Up. 462 00:26:03,560 --> 00:26:05,080 Speaker 1: They brought to you by Try State Out of Years, 463 00:26:05,160 --> 00:26:07,879 Speaker 1: John stash Hour Nathan. The Houston Astros in the American 464 00:26:07,960 --> 00:26:10,240 Speaker 1: League Championship Series for the sixth year a row that 465 00:26:10,320 --> 00:26:13,720 Speaker 1: includes two ALCS wins over the Yankees. Astros made it 466 00:26:13,760 --> 00:26:17,000 Speaker 1: to the World Series last year without the injured Justin Verlander. 467 00:26:17,080 --> 00:26:19,720 Speaker 1: Now he's back at age thirty nine, had a brilliant 468 00:26:19,760 --> 00:26:22,640 Speaker 1: regular season, and in Game one in Houston, Verlander went 469 00:26:22,680 --> 00:26:25,360 Speaker 1: six in things, allowed just three hits, struck out eleven 470 00:26:25,440 --> 00:26:27,879 Speaker 1: at one point six in a row. The Astros hit 471 00:26:27,920 --> 00:26:30,400 Speaker 1: three solo home runs off the Yankee bullpen. They beat 472 00:26:30,440 --> 00:26:33,920 Speaker 1: the Yanks in Game one, four to two. After Verlander left, 473 00:26:33,960 --> 00:26:38,240 Speaker 1: the Houston bullpen added six more strikeouts, so seventeen for 474 00:26:38,320 --> 00:26:40,879 Speaker 1: the game. Aaron Judd, well aware of how good the 475 00:26:40,960 --> 00:26:43,280 Speaker 1: Astros pitching is. You got a great staff of the 476 00:26:43,800 --> 00:26:46,880 Speaker 1: talk the bottom um. He only got great arms out 477 00:26:46,880 --> 00:26:49,119 Speaker 1: of the pen. You know, they can are effected on 478 00:26:49,200 --> 00:26:51,400 Speaker 1: both sides of the plate. You know, righty's and lefties 479 00:26:51,480 --> 00:26:54,200 Speaker 1: and kinda starting pitchers that can work you know only 480 00:26:54,280 --> 00:26:56,399 Speaker 1: one or two pitches, but you know mixing you know, 481 00:26:56,480 --> 00:26:58,640 Speaker 1: three or four pitches. So it's a it's a tough 482 00:26:58,680 --> 00:27:01,920 Speaker 1: matchup that's you know you want to against. So we 483 00:27:02,000 --> 00:27:04,080 Speaker 1: got in front of Judge made a terrific catch in 484 00:27:04,200 --> 00:27:05,960 Speaker 1: right field, saving a couple of runs for the Yanks, 485 00:27:05,960 --> 00:27:08,800 Speaker 1: squandered some earlier scoring chances, also had the tie and 486 00:27:08,880 --> 00:27:11,280 Speaker 1: run on in the ad Matt Carpenter and Josh Donaldson 487 00:27:11,359 --> 00:27:14,280 Speaker 1: had rough nights. They combined to strike out seven times. 488 00:27:14,359 --> 00:27:17,560 Speaker 1: Game two is tonight and LCS Title one Padres game 489 00:27:17,560 --> 00:27:19,600 Speaker 1: from four nothing downbeat the Phillies eight to five. The 490 00:27:19,680 --> 00:27:23,240 Speaker 1: Knicks open the season in Memphis, trailed by nineteen came 491 00:27:23,320 --> 00:27:25,960 Speaker 1: back a Can Reddish three pointner set the game to overtime. 492 00:27:26,000 --> 00:27:28,160 Speaker 1: Reddish as his best game as a Nick. The twenty 493 00:27:28,200 --> 00:27:31,080 Speaker 1: two points off defense with the Grizzlies one one fifteen 494 00:27:31,119 --> 00:27:34,280 Speaker 1: to one twelve. John Brand scored thirty four except their 495 00:27:34,320 --> 00:27:37,080 Speaker 1: home opener tomorrow at Bartney's, All Pelicans blew out the 496 00:27:37,160 --> 00:27:39,880 Speaker 1: Nets one thirty to one oh eight. Rangers Tonight host 497 00:27:39,960 --> 00:27:43,920 Speaker 1: San Josette, John Stashill, Bloomberg Sports Nathan thanks John seven 498 00:27:44,000 --> 00:27:46,399 Speaker 1: on Wall Street Time for the Tri State Business Report 499 00:27:46,440 --> 00:27:50,280 Speaker 1: with Bloomberg Stunies Pellegrini. Some tough times for local home builders. 500 00:27:50,480 --> 00:27:53,560 Speaker 1: New Jersey baysed tuugh Nannian is cutting its earnings outlook. 501 00:27:53,800 --> 00:27:56,920 Speaker 1: The Red Bank home builder is citing inflation, mortgage rates, 502 00:27:56,960 --> 00:28:00,080 Speaker 1: supply chain issues, and Hurricane Ian in a whole we 503 00:28:00,200 --> 00:28:03,560 Speaker 1: works business model absolutely imploded. Well now there is new 504 00:28:03,640 --> 00:28:06,879 Speaker 1: evidence that flexible office space in New York City is 505 00:28:06,960 --> 00:28:10,680 Speaker 1: making a comeback. The Instant Group tells bus journals increase 506 00:28:10,720 --> 00:28:14,000 Speaker 1: are increasing and the biggest interest is from small companies 507 00:28:14,080 --> 00:28:16,919 Speaker 1: with three to nine desks. Some good news for Connecticut 508 00:28:16,960 --> 00:28:21,560 Speaker 1: work from Homer's Comcast is expanding faster internet service. That's 509 00:28:21,600 --> 00:28:25,199 Speaker 1: his rival Frontier rolls out its fiber optic cable. New 510 00:28:25,280 --> 00:28:29,000 Speaker 1: York pet food maker Bark expanding, adding French bulldog, Boxer, 511 00:28:29,119 --> 00:28:32,320 Speaker 1: German Shepherd and Golden Rechiever to its lineup of breed 512 00:28:32,440 --> 00:28:36,320 Speaker 1: specific products. And a new business is opening. Markue's Caviare 513 00:28:36,440 --> 00:28:39,840 Speaker 1: has just launched its new location in Grand Central at 514 00:28:39,880 --> 00:28:42,800 Speaker 1: the market there near Murray's Cheese and Say Bars with 515 00:28:42,880 --> 00:28:46,120 Speaker 1: the chry to say business report, I'm Denise Pellegrini. Alright, Denise, 516 00:28:46,160 --> 00:28:48,840 Speaker 1: thank you. Eight on Wall Street. Bloomberg Radio is on 517 00:28:48,920 --> 00:28:51,200 Speaker 1: the air from San Francisco to New York, London to 518 00:28:51,320 --> 00:28:53,880 Speaker 1: Hong Kong. Let's check in with our global news team 519 00:28:53,920 --> 00:28:55,680 Speaker 1: for some of the top stories heard on our three 520 00:28:55,760 --> 00:29:02,160 Speaker 1: hundred affiliate radio stations around the world. Um Corney Donahoe 521 00:29:02,280 --> 00:29:05,880 Speaker 1: on k Fabian Omaha trucking Giant night Swift as warning 522 00:29:05,920 --> 00:29:08,720 Speaker 1: of a rapid slowdown in the freight market. I'm Steve 523 00:29:08,840 --> 00:29:12,040 Speaker 1: Podas kan K and X in Los Angeles. We're talking 524 00:29:12,080 --> 00:29:15,360 Speaker 1: about the shrinking amount of cargo going through the port 525 00:29:15,400 --> 00:29:18,240 Speaker 1: of l A. I'm TODs Peligreny on w w J 526 00:29:18,400 --> 00:29:21,520 Speaker 1: in Detroit. G M is considering a mid size Hummer 527 00:29:22,000 --> 00:29:25,520 Speaker 1: um Corney Donahoe on kerl Dan Dallas. Fewer Americans are 528 00:29:25,560 --> 00:29:29,680 Speaker 1: planning winter vacations due to inflation. I'm Caroline Headed Bloomberg 529 00:29:29,760 --> 00:29:32,280 Speaker 1: d A B. Dishdo in London. We've been reporting on 530 00:29:32,360 --> 00:29:34,720 Speaker 1: the pressure on the Prime Minister in the Trust after 531 00:29:34,840 --> 00:29:39,680 Speaker 1: more resignations and chaotic scenes in Flament and those are 532 00:29:39,760 --> 00:29:42,480 Speaker 1: some of the stories our twenty seven hundred Bloomberg journalists 533 00:29:42,480 --> 00:29:44,880 Speaker 1: and analysts working on this morning around the world. It's 534 00:29:44,920 --> 00:29:47,760 Speaker 1: five thirty nine on Wall Street. The following is an 535 00:29:47,920 --> 00:29:51,840 Speaker 1: editorial from Bloomberg Opinion. This editorial was written by the 536 00:29:51,880 --> 00:29:56,280 Speaker 1: Bloomberg Editorial Board. With its ground war in Ukraine faltering, 537 00:29:56,600 --> 00:30:00,880 Speaker 1: Russia has intensified its use of unmanned drone to attack 538 00:30:01,080 --> 00:30:06,000 Speaker 1: Ukraine's critical infrastructure and signaled a willingness to conduct similar 539 00:30:06,080 --> 00:30:10,160 Speaker 1: strikes against the West. Last week, Russian President Vladimir Putin 540 00:30:10,240 --> 00:30:16,960 Speaker 1: suggested that any critically important object of transport, energy, or utilities. Infrastructure, 541 00:30:17,360 --> 00:30:21,560 Speaker 1: regardless of location, could be fair game. In the face 542 00:30:21,640 --> 00:30:25,120 Speaker 1: of such threats, US and European leaders should ramp up 543 00:30:25,160 --> 00:30:29,040 Speaker 1: efforts to protect critical infrastructure and make clear that any 544 00:30:29,200 --> 00:30:34,520 Speaker 1: deliberate acts of sabotage will bring an equally punishing response. 545 00:30:35,040 --> 00:30:41,040 Speaker 1: Russia's threats against critical infrastructure represent a dangerous escalation. Swift 546 00:30:41,320 --> 00:30:45,680 Speaker 1: and coordinated action to strengthen the West defenses is the 547 00:30:45,800 --> 00:30:50,520 Speaker 1: best response. This editorial was written by the Bloomberg Editorial Board. 548 00:30:50,720 --> 00:30:53,840 Speaker 1: For more Bloomberg opinion, please go to Bloomberg dot com, 549 00:30:53,960 --> 00:30:57,959 Speaker 1: slash opinion or ope I n go on the Bloomberg terminal. 550 00:30:58,240 --> 00:31:01,400 Speaker 1: This has been Bloomberg Open, and you can hear Bloomberg 551 00:31:01,440 --> 00:31:05,280 Speaker 1: opinion editorials every weekday. At this time. Terminal customers can 552 00:31:05,360 --> 00:31:08,880 Speaker 1: read more at O P I n go. SMP futures 553 00:31:08,880 --> 00:31:12,000 Speaker 1: are down eleven points. DOW futures are in the green 554 00:31:12,120 --> 00:31:15,960 Speaker 1: now just barely up four points, NASDAC futures still in 555 00:31:16,000 --> 00:31:21,960 Speaker 1: the red, down sixty seven points. This is Bloomberg. The 556 00:31:22,000 --> 00:31:24,440 Speaker 1: Bloomberg Sports Report was brought to you by Audie. Don't 557 00:31:24,480 --> 00:31:26,560 Speaker 1: let someone else drive off in the Outie model. You've 558 00:31:26,600 --> 00:31:29,080 Speaker 1: always wanted to visit your local tri state autie dealer 559 00:31:29,120 --> 00:31:31,280 Speaker 1: to get behind the wheel of yours today, or visit 560 00:31:31,360 --> 00:31:38,600 Speaker 1: autie Offers dot com for more information, markets, headlines and 561 00:31:38,760 --> 00:31:42,000 Speaker 1: breaking news twenty four hours a day at Bloomberg dot com, 562 00:31:42,160 --> 00:31:45,680 Speaker 1: The Bloomberg Business at and at Bloomberg Quick Tape. He's 563 00:31:45,720 --> 00:31:55,480 Speaker 1: a Bloomberg Business lash. Europeans stocks are lower. US stock 564 00:31:55,560 --> 00:31:59,000 Speaker 1: index futures are as well, but trimming their declines just 565 00:31:59,120 --> 00:32:02,160 Speaker 1: a bit. This coming as amid rising bond yields, with 566 00:32:02,560 --> 00:32:06,240 Speaker 1: investors concerned that strong inflation and hawkish monetary policy will 567 00:32:06,280 --> 00:32:09,000 Speaker 1: further slow the global economy. We check the markets every 568 00:32:09,000 --> 00:32:12,440 Speaker 1: fifteen minutes throughout the trading day. On Bloomberg, SMP future 569 00:32:12,520 --> 00:32:15,080 Speaker 1: is now not about nine points down, futures are a 570 00:32:15,120 --> 00:32:18,760 Speaker 1: little changed, and NASDAG futures are down fifty nine. That's 571 00:32:18,760 --> 00:32:21,920 Speaker 1: down about half percent still. DAX in Germany's down six 572 00:32:22,000 --> 00:32:24,720 Speaker 1: tenths of upper set. Now. Looking at the ten year treasury, 573 00:32:24,800 --> 00:32:26,920 Speaker 1: it is little change now the yield four point one 574 00:32:27,000 --> 00:32:28,920 Speaker 1: three per cent. The yield him A two year four 575 00:32:28,960 --> 00:32:32,120 Speaker 1: point five seven percent. Nine X curt oil is up 576 00:32:32,160 --> 00:32:34,400 Speaker 1: about two percent of a dollar sixty nine at eighty 577 00:32:34,440 --> 00:32:37,240 Speaker 1: seven dollars twenty four cents of barrel Comics gold is 578 00:32:37,280 --> 00:32:39,400 Speaker 1: up three tens per cent, or five dollars at sixteen 579 00:32:39,440 --> 00:32:42,560 Speaker 1: thirty nine twenty announced the euro point nine seven eight 580 00:32:42,640 --> 00:32:44,880 Speaker 1: four against the dollar, British found one point one two 581 00:32:44,960 --> 00:32:47,440 Speaker 1: oh eight the N one forty nine point eight three 582 00:32:47,720 --> 00:32:50,000 Speaker 1: and big coin is down about two tens percent in 583 00:32:50,120 --> 00:32:53,960 Speaker 1: nineteen thousand one d fifty dollars. That's a Bloomberg business flash. 584 00:32:54,040 --> 00:32:56,120 Speaker 1: Now here's Michael Barr with more on what's going on 585 00:32:56,240 --> 00:32:59,400 Speaker 1: around the world. Michael Karen, thank you very much. Starting today, 586 00:32:59,560 --> 00:33:03,040 Speaker 1: Russian President Putin has declared martial law in the four 587 00:33:03,200 --> 00:33:06,880 Speaker 1: border regions of Ukraine that the Russia illegally nexed, giving 588 00:33:06,920 --> 00:33:10,000 Speaker 1: authorities they're more power to crack down on the population. 589 00:33:10,640 --> 00:33:15,040 Speaker 1: This as Ukraine braces today for four hour blackouts in 590 00:33:15,160 --> 00:33:18,120 Speaker 1: response the recent Russian missile and drone attacks on the 591 00:33:18,160 --> 00:33:22,920 Speaker 1: country's power infrastructure. List Trust's UK premiership is on the 592 00:33:23,000 --> 00:33:26,680 Speaker 1: brink of collapse. Tory MPs openly said she should go. 593 00:33:27,200 --> 00:33:30,360 Speaker 1: A tumultuous day in parliament yesterday saw Trust fire a 594 00:33:30,440 --> 00:33:34,080 Speaker 1: senior minister. In baseball, the Yankees lost Game one of 595 00:33:34,160 --> 00:33:39,000 Speaker 1: the a LCS against the Astros four two. In the NLCS, 596 00:33:39,080 --> 00:33:41,240 Speaker 1: the Padres even the series at the Game of Piece 597 00:33:41,520 --> 00:33:44,320 Speaker 1: after beating the Phillies eight five. In the NBA, the 598 00:33:44,360 --> 00:33:47,280 Speaker 1: Knicks lost their opener against the Grizzlies and overtime one 599 00:33:47,800 --> 00:33:51,200 Speaker 1: one twelve, the Nets lost the Wizards. One. Global News 600 00:33:51,240 --> 00:33:54,520 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 601 00:33:54,760 --> 00:33:57,880 Speaker 1: powered by more than hundred journalists and analysts more than 602 00:33:57,880 --> 00:34:01,680 Speaker 1: a hundred twenty countries. Michael Bard, this is Bloomberg, Nathan, Michael. Thanks, 603 00:34:01,760 --> 00:34:03,840 Speaker 1: It's five forty nine on Wall Street Live from the 604 00:34:03,880 --> 00:34:07,760 Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and Daniel 605 00:34:07,800 --> 00:34:10,800 Speaker 1: Morris is with us now chief market strategist at BNP 606 00:34:10,960 --> 00:34:14,200 Speaker 1: Party Asset Management. Daniel, it's great to speak with you 607 00:34:14,400 --> 00:34:17,920 Speaker 1: this morning. We're coming off two straight days of gains 608 00:34:18,040 --> 00:34:20,680 Speaker 1: to start the week. We gave some of that back yesterday. 609 00:34:20,800 --> 00:34:23,600 Speaker 1: This morning things are looking kind of choppy. What's the 610 00:34:23,680 --> 00:34:27,759 Speaker 1: trajectory for this market for you? Uh, well, I guess 611 00:34:27,840 --> 00:34:30,640 Speaker 1: I think it comes down to your horizon. The fact 612 00:34:30,680 --> 00:34:32,359 Speaker 1: that we've had a bit of a rally coming into 613 00:34:32,360 --> 00:34:35,279 Speaker 1: the earning season and doesn't surprise us if you think 614 00:34:35,320 --> 00:34:39,280 Speaker 1: that sentiment has just been so negative. You look at bowls, bears, ratios, 615 00:34:39,320 --> 00:34:42,400 Speaker 1: pook called ratios. You know, no one likes equities, but 616 00:34:42,640 --> 00:34:44,520 Speaker 1: that means if you get a bit of good news 617 00:34:44,640 --> 00:34:46,440 Speaker 1: in that environment, you can get a balance. And we 618 00:34:46,520 --> 00:34:49,320 Speaker 1: were anticipating with the earning season on balance that it 619 00:34:49,400 --> 00:34:51,560 Speaker 1: was going to come out to be just fine. Uh, 620 00:34:51,840 --> 00:34:55,279 Speaker 1: given that earnings expectations had already been lowered a lot, 621 00:34:55,800 --> 00:34:58,640 Speaker 1: that left room for positive earning surprises. It'll come down 622 00:34:58,680 --> 00:35:00,920 Speaker 1: to what kind of guidance we get on the outlook. 623 00:35:01,360 --> 00:35:03,680 Speaker 1: But given that growth right now in the US is 624 00:35:03,719 --> 00:35:06,600 Speaker 1: still pretty solid, it seems unlikely that that CEOs are 625 00:35:06,640 --> 00:35:08,960 Speaker 1: going to be really pessimistic. So we think that that 626 00:35:09,120 --> 00:35:12,239 Speaker 1: impetus in the near term is probably still there. But 627 00:35:12,440 --> 00:35:14,400 Speaker 1: when you think about what the Fed is doing, you know, 628 00:35:14,520 --> 00:35:17,200 Speaker 1: eventually those interest rate hikes are going to tell that's 629 00:35:17,280 --> 00:35:19,600 Speaker 1: the point, But we think it's not quite yet that 630 00:35:19,640 --> 00:35:22,200 Speaker 1: it's really going to hit equities again. Now we've heard 631 00:35:22,320 --> 00:35:26,239 Speaker 1: from more FED speakers just in the last day, sort 632 00:35:26,320 --> 00:35:31,240 Speaker 1: of signaling that they've at least hope that the interest 633 00:35:31,360 --> 00:35:34,239 Speaker 1: rate hikes and the projections they put forward are going 634 00:35:34,320 --> 00:35:37,360 Speaker 1: to do something to tamp inflation down. What does that 635 00:35:37,480 --> 00:35:40,200 Speaker 1: tell you about what the FED rate hike path could 636 00:35:40,280 --> 00:35:44,200 Speaker 1: look like into next year. Well, it really is going 637 00:35:44,239 --> 00:35:46,879 Speaker 1: to depend how inflation of alls. And I think i'll 638 00:35:47,120 --> 00:35:49,520 Speaker 1: us have learned to be quite humble when it comes 639 00:35:49,520 --> 00:35:52,120 Speaker 1: to predicting the path in inflation, so won't hazard too 640 00:35:52,200 --> 00:35:54,640 Speaker 1: much about where it might go. But I think it 641 00:35:54,760 --> 00:35:57,080 Speaker 1: depending on which direction it takes. If we do see 642 00:35:57,120 --> 00:35:59,640 Speaker 1: a peak, uh, and it starts to go down, that 643 00:36:00,360 --> 00:36:03,960 Speaker 1: give the FED and opening to perhaps pause or pivot 644 00:36:04,120 --> 00:36:06,120 Speaker 1: sooner than they said that they will. If, on the 645 00:36:06,200 --> 00:36:08,160 Speaker 1: other hand, it stays high. And there's certainly reasons we 646 00:36:08,239 --> 00:36:10,920 Speaker 1: think that could be the case, given the pressure we've 647 00:36:11,040 --> 00:36:14,440 Speaker 1: had in in shelter inflation, what we're seeing now in services, 648 00:36:14,840 --> 00:36:16,920 Speaker 1: you know, the FEDS you know, currently says they're going 649 00:36:16,960 --> 00:36:19,200 Speaker 1: to keep rates uh kind of right easy in and 650 00:36:19,360 --> 00:36:21,200 Speaker 1: high until the end of the end of next year. 651 00:36:21,320 --> 00:36:23,640 Speaker 1: So it's whether that happens or they can pivot sooner. 652 00:36:24,080 --> 00:36:26,000 Speaker 1: It just is a bit of wait and see. What 653 00:36:26,120 --> 00:36:28,040 Speaker 1: does that wait and see mean for stocks in the 654 00:36:28,160 --> 00:36:32,080 Speaker 1: medium term? I mean rates elevated right now? That puts 655 00:36:32,160 --> 00:36:36,080 Speaker 1: pressure on stocks anyway, doesn't it. Well, I think you 656 00:36:36,400 --> 00:36:38,759 Speaker 1: you've seen a change in the dynamic of what's driving 657 00:36:38,800 --> 00:36:40,960 Speaker 1: stocks so up to now. I guess for most of 658 00:36:41,040 --> 00:36:42,960 Speaker 1: this year it's been the fact that interest rates have 659 00:36:43,080 --> 00:36:46,839 Speaker 1: gone up dramatically. That's driven most of the decline we've 660 00:36:46,880 --> 00:36:48,879 Speaker 1: had in ECUs so far. You know, your interest rates 661 00:36:48,920 --> 00:36:50,880 Speaker 1: are going up, row rates are going up, discount rate 662 00:36:50,920 --> 00:36:55,720 Speaker 1: going up, so that reduces the multiple, particularly for growth stocks, 663 00:36:55,760 --> 00:36:57,920 Speaker 1: and that's that's been the key driver. We think that 664 00:36:58,120 --> 00:37:00,800 Speaker 1: process is more or less over. We don't think expectations 665 00:37:00,920 --> 00:37:03,080 Speaker 1: need to go up much more from here. We're already 666 00:37:03,160 --> 00:37:06,400 Speaker 1: quite high nearly five percent. But the next leg, the 667 00:37:06,480 --> 00:37:08,279 Speaker 1: next you if you will, that has to drop is 668 00:37:08,360 --> 00:37:10,800 Speaker 1: going to be the impact of that increase in interest 669 00:37:10,880 --> 00:37:14,120 Speaker 1: rates on growth, economic growth, and are ultimately corporate earnings. 670 00:37:14,160 --> 00:37:16,520 Speaker 1: And again we haven't seen that yet, but at some 671 00:37:16,640 --> 00:37:18,360 Speaker 1: point it's got to common. I think that's going to 672 00:37:18,440 --> 00:37:21,360 Speaker 1: be the vulnerability for the market when we start pricing 673 00:37:21,440 --> 00:37:24,200 Speaker 1: in a decline in earnings instead of an increase in earnings. 674 00:37:24,280 --> 00:37:26,839 Speaker 1: This is what you have now with consensus ess to its. 675 00:37:27,239 --> 00:37:30,319 Speaker 1: With the vulnerabilities out there, Daniel, where do you look 676 00:37:30,360 --> 00:37:34,840 Speaker 1: for opportunity? Are there certain sectors or styles in the 677 00:37:34,960 --> 00:37:42,200 Speaker 1: market that are less insulated from tighter monetary policy. Well, ultimately, 678 00:37:42,239 --> 00:37:44,239 Speaker 1: if we're moving into a recession, of course you want 679 00:37:44,280 --> 00:37:47,040 Speaker 1: to be defensively positioned anyway. But I think one thing 680 00:37:47,160 --> 00:37:50,120 Speaker 1: that perhaps is in the process of changing. I mean, 681 00:37:50,239 --> 00:37:52,320 Speaker 1: for most of this year it's been clear than a 682 00:37:52,360 --> 00:37:55,000 Speaker 1: performance of growth docks versus value because of that increase 683 00:37:55,040 --> 00:37:57,640 Speaker 1: in interest rates and the impact on the multiple. If 684 00:37:57,719 --> 00:38:01,000 Speaker 1: we're right that rates have more or less top down, uh, 685 00:38:01,160 --> 00:38:03,880 Speaker 1: that pressure should should lack As you get closer to 686 00:38:04,000 --> 00:38:07,160 Speaker 1: a recession, growth becomes that much more important, So that 687 00:38:07,239 --> 00:38:10,719 Speaker 1: should increase the interesting growth as a style. And then 688 00:38:10,760 --> 00:38:14,439 Speaker 1: particularly at some point the FED will pivot, interest rates 689 00:38:14,760 --> 00:38:16,480 Speaker 1: will start to fall, and that's going to drag on 690 00:38:16,600 --> 00:38:19,640 Speaker 1: the value sector because you think of financials, lower growth 691 00:38:19,680 --> 00:38:21,719 Speaker 1: should be bad for Commodity is also a big part 692 00:38:21,760 --> 00:38:24,080 Speaker 1: of value. So we think you're gonna see, you know, 693 00:38:24,160 --> 00:38:26,919 Speaker 1: at some point in rotation and see some outperformance of growth. 694 00:38:27,120 --> 00:38:30,160 Speaker 1: If that's quite yet, maybe not, but it's something we 695 00:38:30,280 --> 00:38:33,720 Speaker 1: might anticipate in the month's hut at some point. All right, Daniel, 696 00:38:33,800 --> 00:38:37,760 Speaker 1: thanks as always. Daniel Morris's chief market strategist at BNP 697 00:38:37,920 --> 00:38:41,640 Speaker 1: party Bomb Asset Management Karen Nathan. It is five fifties 698 00:38:41,680 --> 00:38:43,799 Speaker 1: three on Wall Street. It's time now for our daily 699 00:38:43,840 --> 00:38:47,399 Speaker 1: Bloomberg lob reef exploring legal issues in the news, brought 700 00:38:47,480 --> 00:38:51,520 Speaker 1: to you by American Arbitration Association. Business disputes are inevitable 701 00:38:51,640 --> 00:38:55,359 Speaker 1: result anster with the American Arbitration Association, the global leader 702 00:38:55,360 --> 00:38:58,719 Speaker 1: in alternative dispute resolution for over ninety years. More at 703 00:38:58,800 --> 00:39:01,719 Speaker 1: a d R dot org. Now here's a legal story 704 00:39:01,800 --> 00:39:04,520 Speaker 1: we're following this morning. After three and a half years 705 00:39:04,600 --> 00:39:09,000 Speaker 1: of investigating the FBI's investigation into the Trump campaigns alleged 706 00:39:09,080 --> 00:39:13,800 Speaker 1: Russia connections, Special counsel John Durham has lost the only 707 00:39:13,920 --> 00:39:16,719 Speaker 1: two cases to go to trial on Tuesday, had jury 708 00:39:16,800 --> 00:39:19,759 Speaker 1: found Igor d Chenko, the Russian analyst who was the 709 00:39:19,800 --> 00:39:23,479 Speaker 1: primary source for the Steel dossier, not guilty of lying 710 00:39:23,560 --> 00:39:26,400 Speaker 1: to the FBI about where he got his information. The 711 00:39:26,480 --> 00:39:29,919 Speaker 1: investigation has cost the taxpayers more than five point eight 712 00:39:30,160 --> 00:39:33,040 Speaker 1: million dollars with little to show for it. For more 713 00:39:33,080 --> 00:39:37,320 Speaker 1: of Bloomberg, Joon Grassos speaks to Bloomberg legal reporter Eric Larson. So, 714 00:39:37,480 --> 00:39:41,760 Speaker 1: then the remaining four counts were all about one person 715 00:39:42,360 --> 00:39:45,800 Speaker 1: and one call. That's correct. There's all about whether or not, 716 00:39:46,040 --> 00:39:49,680 Speaker 1: Mr Vanchenko truly believed that an anonymous phone call that 717 00:39:49,760 --> 00:39:52,279 Speaker 1: he got in two thousand sixteen from a tipster, the 718 00:39:52,320 --> 00:39:55,000 Speaker 1: one who had the tip about the well developed conspiracy 719 00:39:55,080 --> 00:39:57,480 Speaker 1: between the Trump campaign and the Kremlin. Whether or not 720 00:39:57,600 --> 00:40:00,680 Speaker 1: he truly believed that that caller was a guy named 721 00:40:00,719 --> 00:40:04,640 Speaker 1: Sergean Million, who was the president of the Russian American 722 00:40:04,800 --> 00:40:08,120 Speaker 1: Chamber of Commerce at the time. So it was his belief. 723 00:40:08,280 --> 00:40:10,719 Speaker 1: He said in his FBI interview that he believed that's 724 00:40:10,760 --> 00:40:14,400 Speaker 1: who the person was who had called, and the FBI said, 725 00:40:14,719 --> 00:40:17,359 Speaker 1: not only do they believe that it wasn't him who called, 726 00:40:17,400 --> 00:40:19,439 Speaker 1: but that the call never happened. But they didn't really 727 00:40:19,520 --> 00:40:23,160 Speaker 1: present enough evidence to prove that. I don't know how 728 00:40:23,239 --> 00:40:26,719 Speaker 1: you bring a federal case over what someone believed at 729 00:40:26,760 --> 00:40:30,960 Speaker 1: the time. It seems awfully the fin was stretching it. 730 00:40:31,560 --> 00:40:35,040 Speaker 1: It did seem, you know, bin a stay. The evidence 731 00:40:35,120 --> 00:40:38,200 Speaker 1: that was presented. It wasn't very hard evidence. It could 732 00:40:38,239 --> 00:40:40,160 Speaker 1: go sort of either way about whether or not he 733 00:40:40,280 --> 00:40:42,799 Speaker 1: believed it. So the jury apparently felt the same. I mean, 734 00:40:42,840 --> 00:40:45,440 Speaker 1: as we know, back in May, the first case from 735 00:40:45,520 --> 00:40:48,960 Speaker 1: his investigation to go to trial against former Clinton campaign 736 00:40:49,040 --> 00:40:52,800 Speaker 1: lawyer Michael Stuffman also ended in acquittal, and he was 737 00:40:52,840 --> 00:40:55,040 Speaker 1: also charged with lying to the FBI by the Trump 738 00:40:55,160 --> 00:40:58,920 Speaker 1: Russia tips. So to bring these narrow cases about telling 739 00:40:59,440 --> 00:41:02,560 Speaker 1: you know, what amounts of fairly small lies, I guess 740 00:41:02,600 --> 00:41:06,000 Speaker 1: you could say alleged lives that that's really what this 741 00:41:06,200 --> 00:41:09,000 Speaker 1: is focusing on. After all of this time and money spent. 742 00:41:09,160 --> 00:41:11,760 Speaker 1: Is not a terribly good book for the Special Council. 743 00:41:12,000 --> 00:41:15,279 Speaker 1: How big a defeat is this coming on top of 744 00:41:15,440 --> 00:41:21,920 Speaker 1: the last acquittal? And you know, prosecutors don't usually lose cases. 745 00:41:22,000 --> 00:41:25,160 Speaker 1: It's unusual because if they're bringing a case, they think 746 00:41:25,239 --> 00:41:29,000 Speaker 1: they have enough evidence to prove it beyond a reasonable death. Well, 747 00:41:29,200 --> 00:41:33,040 Speaker 1: there's of course speculation that these trials were really about 748 00:41:33,080 --> 00:41:35,520 Speaker 1: putting the FBI agents on the stand, whether or not 749 00:41:35,640 --> 00:41:38,560 Speaker 1: that's the proper use of the federal criminal trial, you know, 750 00:41:38,840 --> 00:41:41,000 Speaker 1: but that's what's certainly a lot of dorms to Own 751 00:41:41,040 --> 00:41:43,440 Speaker 1: supporters and Trump supporters have been saying, is not all 752 00:41:43,520 --> 00:41:46,000 Speaker 1: these verdicts, you know, they're beside. The point doesn't matter. 753 00:41:46,040 --> 00:41:49,000 Speaker 1: It was exposing these FBI agents, getting details of the 754 00:41:49,120 --> 00:41:52,480 Speaker 1: investigation out in the open. It's like, yeah, you're right, 755 00:41:52,560 --> 00:41:54,680 Speaker 1: Usually the government, you know, comes in a case like 756 00:41:54,760 --> 00:41:56,839 Speaker 1: this with the upper hand, and then usually they also 757 00:41:56,880 --> 00:41:59,320 Speaker 1: come at it with a lot more evidence. So you know, 758 00:41:59,400 --> 00:42:02,080 Speaker 1: we'll see what its final report doesn't assuming it'll be 759 00:42:02,160 --> 00:42:06,960 Speaker 1: pretty damning, mostly about the FBI and as Bloomberg the 760 00:42:07,040 --> 00:42:10,480 Speaker 1: Legal reporter Eric Larson speaking with Bloomberg student Grosso. Catch 761 00:42:10,560 --> 00:42:12,960 Speaker 1: more of that interview, plus analysis of the latest legal 762 00:42:13,040 --> 00:42:16,320 Speaker 1: news by subscribing to the Bloomberg Law Podcast or downloading 763 00:42:16,360 --> 00:42:19,600 Speaker 1: the show at Bloomberg dot com slash podcast. Attorneys can 764 00:42:19,600 --> 00:42:22,840 Speaker 1: find exceptional legal research and business development tools at Bloomberg 765 00:42:22,920 --> 00:42:25,600 Speaker 1: Law dot com and on the Bloomberg terminal at b 766 00:42:25,840 --> 00:42:30,080 Speaker 1: law Go SNP Futures they're down about eleven points down, 767 00:42:30,160 --> 00:42:34,040 Speaker 1: futures remain little change and nasday futures down sixty five 768 00:42:34,440 --> 00:42:37,880 Speaker 1: ten year Treasury down to thirties seconds Field four point 769 00:42:38,080 --> 00:42:41,680 Speaker 1: one four percent and still ahead. On Bloomberg Daybreak and 770 00:42:41,760 --> 00:42:43,880 Speaker 1: check on the business headlines and all the news you 771 00:42:44,040 --> 00:42:46,880 Speaker 1: need to start your day. And this is Bloomberg