WEBVTT - Bloomberg Daybreak: October 6, 2022 - Hour 1 (Radio) 0:00:01.920 --> 0:00:05.240 Five from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.280 --> 0:00:09.000 Day right for Thursday, October six two. Coming up this hour. 0:00:09.360 --> 0:00:13.680 Beneficials say the expectation for rate cuts next year is misplaced. 0:00:13.920 --> 0:00:17.079 The U S slam's OPEC's decision to cur production. Elon 0:00:17.160 --> 0:00:20.080 musk me have wanted to slash his takeover price for Twitter, 0:00:20.160 --> 0:00:22.720 and hundreds of billions of dollars in market value have 0:00:22.840 --> 0:00:26.160 it wiped away In the first month of this trust's government. 0:00:26.280 --> 0:00:28.960 New York City Council members are calling for housing asylum 0:00:29.040 --> 0:00:32.000 seekers and hotels and church uses to the Randall's Island. 0:00:32.000 --> 0:00:34.880 Plus more missile launches from North Korea on Michael Lawn. 0:00:35.000 --> 0:00:37.839 More ahead, I'm John stash Own Sports. The baseball regular 0:00:37.880 --> 0:00:40.720 season enter The Yankees lost the Mets one. They begin 0:00:40.800 --> 0:00:45.760 the post season tomorrow night. That's all trendy head on 0:00:45.880 --> 0:00:49.240 Bloomberg Day Break on Bloomberg eleven three on New York, 0:00:49.440 --> 0:00:54.120 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.400 --> 0:00:58.560 Bloomberg nine sixties and Francisco syrius x M one nine 0:00:58.600 --> 0:01:01.840 team and around the world the Bloomberg Radio dot Com 0:01:01.920 --> 0:01:08.959 and via the Bloomberg Business good morning. I'm Nathan Hagar 0:01:09.280 --> 0:01:12.319 and I'm Karen Moscow. US DOT index futures are lower 0:01:12.400 --> 0:01:14.280 this morning. We are coming up to five o one 0:01:14.280 --> 0:01:16.319 on Wall Street, and we check the markets every fifteen 0:01:16.319 --> 0:01:19.360 minutes throughout the trading day. On Bloomberg, SMP Future is 0:01:19.400 --> 0:01:21.959 down fifteen points this morning, dowal Future is down a 0:01:22.000 --> 0:01:24.560 hundred three, and Nastack Future is down forty four. The 0:01:24.600 --> 0:01:27.080 decks in Germany is up about two tenths of a percent. 0:01:27.480 --> 0:01:30.600 Ten year treasury that'll change YELD three point seven five percent, 0:01:30.640 --> 0:01:33.240 and a yield on the two year four point one 0:01:33.400 --> 0:01:36.600 five percent. Nathan Well, Karen. This drop in US futures 0:01:36.600 --> 0:01:39.600 follows a late day comeback on Wall Street after falling 0:01:39.640 --> 0:01:41.720 as much as one point eight percent. The S and 0:01:41.760 --> 0:01:45.040 P five hundred ended yesterday session down two tenths percent, 0:01:45.400 --> 0:01:48.840 fueled by a big options trade. Aaron Kennon, CEO at 0:01:48.840 --> 0:01:51.760 clear heartbreass that management says that drop in earnings isn't 0:01:51.760 --> 0:01:55.360 being priced in yet. I think a very shallow recession, 0:01:55.560 --> 0:01:58.440 I would argue, is probably priced in. But if we 0:01:58.640 --> 0:02:02.040 are seeing some sort of double digit decline and let's 0:02:02.040 --> 0:02:07.280 say sp earnings next year, that's probably not yet priced 0:02:07.480 --> 0:02:11.320 into the market. Aaron kennon a clear hartbreast that management 0:02:11.320 --> 0:02:14.040 says tomorrow's jobs report will be a key indicator for 0:02:14.040 --> 0:02:17.160 the path ahead. Well. Fedow Reserve officials are repeating the 0:02:17.200 --> 0:02:20.080 mantra Nathan, and they don't plan to cut interest rates 0:02:20.120 --> 0:02:22.840 the next year. San Francisco FED President Mary Daily in 0:02:22.880 --> 0:02:25.920 Atlanta FED Chief Rafael Bostic are the latest to bang 0:02:25.960 --> 0:02:28.600 the drum on the need to keep tightening. We spoke 0:02:28.720 --> 0:02:31.840 yesterday with Daily. I see us as raising to a 0:02:32.000 --> 0:02:36.400 level that we believe is restrictive enough to bring inflation down, 0:02:36.680 --> 0:02:40.000 and then holding it there until we see inflation truly 0:02:40.040 --> 0:02:44.600 get close to two and and demonstrate that price stability 0:02:44.639 --> 0:02:48.359 is restored. Barry Daly's comments are being echoed by Atlanta 0:02:48.400 --> 0:02:51.440 FED President Raphael Bostick, who says rates still need to 0:02:51.440 --> 0:02:53.840 go much higher. I'd like to reach a point where 0:02:53.919 --> 0:02:57.040 policy is moderately restrictive, somewhere between four and four and 0:02:57.040 --> 0:02:58.880 a half percent, by the end of this year, and 0:02:58.919 --> 0:03:00.880 then hold of that level all and see how the 0:03:00.919 --> 0:03:05.160 economy and prices react. Atlanta FED President Raphael Bostake says 0:03:05.160 --> 0:03:08.520 there are encouraging signs on inflation, but he still sees 0:03:08.560 --> 0:03:11.960 the overall picture as challenging. Let's turn to oil now, Karen. 0:03:12.000 --> 0:03:15.160 A production cut by OPEC is making waves. Right now, 0:03:15.240 --> 0:03:18.000 Prices are steady a day after OPEC and its allies 0:03:18.040 --> 0:03:21.080 agreed to the biggest production cut since twenty twenty. The 0:03:21.080 --> 0:03:24.360 alliance plans to slash daily output by two million barrels. 0:03:24.639 --> 0:03:27.760 Saw the Energy Minister, Prince Abdulazi has been salmon. Spoke 0:03:27.800 --> 0:03:31.280 with us in Vienna. I don't want people to chink 0:03:31.480 --> 0:03:34.920 that this is one waste in this case. No, it's 0:03:34.960 --> 0:03:39.400 a variety of controuting uncertainties, and they could go yesterday 0:03:39.640 --> 0:03:43.000 altogether and to the positive side utra the negative side, 0:03:43.120 --> 0:03:46.000 or it could be accompanition. Saw the Energy Minister, Prince 0:03:46.000 --> 0:03:49.000 Abdulazi has been salmon, says. The US led initiative to 0:03:49.040 --> 0:03:51.560 slap a price cap on Russian oil is adding to 0:03:51.680 --> 0:03:55.080 uncertainty in the market. Check prices now. Nimex screws up 0:03:55.080 --> 0:03:57.560 about a tenth percent of eight cents at eighties seven 0:03:57.560 --> 0:04:00.160 dollars eighty four cents of barrel Brent is higher by 0:04:00.200 --> 0:04:03.840 two tenths percent at ninety three dollars fifty three cents. Well, Nathan, 0:04:03.840 --> 0:04:06.360 the White House is pushing back against OPEC's decision to 0:04:06.440 --> 0:04:09.680 curb production, calling the move on necessary and short sighted. 0:04:09.960 --> 0:04:13.320 We discussed the matter with National Economic Council Director Briands. 0:04:13.760 --> 0:04:16.520 As the President mentioned, we think it's unnecessary if you 0:04:16.600 --> 0:04:20.719 look at the global environment, where supply continues to be 0:04:20.880 --> 0:04:24.240 the predominant challenge. We've been working for some time to 0:04:24.839 --> 0:04:28.560 take action and encourage action globally to make sure that 0:04:28.640 --> 0:04:32.480 supply actually matches demand. White House Economic Advisor Brian d 0:04:32.640 --> 0:04:35.080 says the US will released ten million barrels from the 0:04:35.080 --> 0:04:39.000 Strategic Petroleum Reserve this mob. He's also calling on gasoline 0:04:39.000 --> 0:04:42.560 companies to close the gap between wholesale and retail prices 0:04:42.600 --> 0:04:45.360 at the pump. In the UK this morning, political turmoil 0:04:45.480 --> 0:04:48.640 is still weighing on investor sentiment. Karen. Hundreds of billions 0:04:48.640 --> 0:04:50.840 of dollars have been wiped from the nations stock and 0:04:51.000 --> 0:04:54.279 bond markets in the first month of Liz Trust's government. 0:04:54.560 --> 0:04:57.360 Let's get more live from Bloomberg's U and Potts in London. 0:04:57.360 --> 0:05:00.320 Good morning, En, Good morning Nathan and Karen. Three hundred 0:05:00.400 --> 0:05:03.520 and forty billion dollars. That's the total knocked off the 0:05:03.560 --> 0:05:06.119 value of UK stocks and bonds over the past month. 0:05:06.400 --> 0:05:09.240 While that's it's globally have been royal by central banks, tightening, 0:05:09.520 --> 0:05:12.640 confidence in the UK has taken a real battering. The 0:05:12.680 --> 0:05:15.440 September sell off on the new government's unfunded tax cuts 0:05:15.440 --> 0:05:17.800 saw the pound hits a record low against the dollar, 0:05:18.120 --> 0:05:20.760 intervention by the Bank of England and a swift climbed 0:05:20.760 --> 0:05:24.000 down by the Chancellor. One strategist, though, says some investors 0:05:24.040 --> 0:05:27.920 currently consider the UK as uninvestable. In London, i'mmun parts 0:05:27.920 --> 0:05:29.800 of both day Break, are you and thank you? All? 0:05:29.839 --> 0:05:31.680 Back here in the U s we're learning more about 0:05:31.680 --> 0:05:35.080 the details behind Elon must takeover of Twitter. Turns out 0:05:35.160 --> 0:05:37.440 he was pushing for a lower price behind the scenes, 0:05:37.520 --> 0:05:40.719 and we get the details from Bloombery's Lisa Mateo. Sources 0:05:40.720 --> 0:05:44.000 say Musks representatives and Twitter held talks in the past 0:05:44.040 --> 0:05:46.320 few weeks about a buy out for less than fifty 0:05:46.320 --> 0:05:48.640 four dollars and twenty cents of share, but they didn't 0:05:48.680 --> 0:05:51.560 go anywhere. The New York Times reported musk Hat saught 0:05:51.600 --> 0:05:54.719 a thirty percent reduction in the price this week, Must 0:05:54.760 --> 0:05:56.599 set in a letter to Twitter that he would be 0:05:56.600 --> 0:05:59.320 willing to complete the deal for the original price. In 0:05:59.360 --> 0:06:02.920 another development, the two sides agreed to postpone the billionaire's 0:06:03.040 --> 0:06:06.680 long awaited deposition today in the company's lawsuit aimed at 0:06:06.760 --> 0:06:09.400 forcing him to go through with the forty four billion 0:06:09.480 --> 0:06:13.359 dollar buy out. Lisa Mateo, Bloomberg Daybreak, Lisa, thanks, we 0:06:13.400 --> 0:06:16.000 have word of more corporate job cuts. This morning. General 0:06:16.000 --> 0:06:20.560 Electric is slashing positions that it's onshore wind turbine manufacturing business. 0:06:20.720 --> 0:06:23.760 Bloomberg News is lergy E will reduce its US onshore 0:06:23.760 --> 0:06:27.120 wind workforce by twenty that it's the hundreds of jobs. 0:06:27.440 --> 0:06:30.040 The move is designed to counter mounting losses at its 0:06:30.080 --> 0:06:33.320 renewable energy unit. And finally, Nathan News on the pandemic. 0:06:33.400 --> 0:06:36.560 This morning, American Express is ending her requirement that employees 0:06:36.600 --> 0:06:39.599 need to be vaccinated against COVID nineteen to enter the office. 0:06:39.640 --> 0:06:42.440 Let me get the story from Bloomberg's Charlie Pillett. List 0:06:42.520 --> 0:06:46.440 takes effect November one st It applies to offices across 0:06:46.480 --> 0:06:50.719 the United States, Canada, Australia, and New Zealand, all according 0:06:50.720 --> 0:06:53.960 to an internal memo two staff seen by Bloomberg. The 0:06:54.000 --> 0:06:56.520 New York based credit card company has been one of 0:06:56.520 --> 0:07:00.279 the few financial firms to embrace remote work in the 0:07:00.320 --> 0:07:05.360 aftermath of the pandemic in New York. Charlie Pellett Bloomberg Daybreak. Charlie. Thanks. 0:07:05.360 --> 0:07:07.920 Bloomberg day Break is brought to you by SEI. Asset 0:07:07.960 --> 0:07:10.080 managers don't get results that are off the charts when 0:07:10.080 --> 0:07:12.520 their solutions are off the shelf. Learned how SEI is 0:07:12.560 --> 0:07:16.280 operating platform can turn infrastructure into a competitive advantage at 0:07:16.400 --> 0:07:19.920 se i C dot Com, slash Tech. This is Bloomberg 0:07:23.520 --> 0:07:25.280 and it's south five oh seven on Wall Street. It's 0:07:25.280 --> 0:07:27.960 fifty six degrees in Central Park. Got problems getting on 0:07:27.960 --> 0:07:31.000 the New Jersey Turnpike this morning. If you're in East Brunswick, 0:07:31.440 --> 0:07:33.760 fill you in on that shortly. First, Michael Barr has 0:07:33.800 --> 0:07:35.440 more on what's going on in New York and around 0:07:35.480 --> 0:07:37.960 the world. Good morning, Michael, Good morning Nathan. New York 0:07:38.040 --> 0:07:41.880 City Council members are proposing housing asylum seekers and hotels 0:07:41.960 --> 0:07:45.960 and churches. The ideas from last night's council meeting income 0:07:46.040 --> 0:07:49.280 after Mayor Eric Adams now wants to house migrants in 0:07:49.360 --> 0:07:53.080 a tent city at Randall's Island. Mayor Adams scrapped the 0:07:53.080 --> 0:07:56.600 original idea of having the Migrant Relief Center in Orchard 0:07:56.640 --> 0:08:01.160 Beach after opposition both sides of the debate. However, critics 0:08:01.160 --> 0:08:04.320 say the new Randall's Island location will still have the 0:08:04.360 --> 0:08:08.440 same problems, including access from migrants to get jobs, healthcare, 0:08:08.560 --> 0:08:11.960 and schools. President Biden will be in New York today. 0:08:12.120 --> 0:08:14.760 You will visit a jobs event at an IBM campus 0:08:14.760 --> 0:08:18.400 in Poughkeepsie. The President will also attend a Democratic fundraiser 0:08:18.480 --> 0:08:23.360 in New Jersey. Yesterday, President Biden visited southwest Florida, pledging 0:08:23.400 --> 0:08:26.560 support for storm victims who lost everything to Hurricane Ian. 0:08:27.080 --> 0:08:29.000 I promise you we're gonna be with you every step 0:08:29.000 --> 0:08:31.920 of the way. The people of Florida to all of you, 0:08:32.360 --> 0:08:35.240 We're in this together. The President got a warm welcome 0:08:35.280 --> 0:08:38.920 from Florida Governor Rhndas Santis. Mr. President, welcome to Florida. 0:08:39.080 --> 0:08:43.960 We appreciate working together across various levels of government. President 0:08:44.000 --> 0:08:47.040 Biden says Republican Governor Dessentis has done a good job. 0:08:47.400 --> 0:08:51.760 Biden said he and DeSantis have put politics aside, focused 0:08:51.760 --> 0:08:55.080 on the storm and have been in complete lockstep. More 0:08:55.120 --> 0:08:58.319 than thirty people, primarily children, were killed today when a 0:08:58.400 --> 0:09:02.800 gunman opened fire in a wild care center in northeastern Thailand. 0:09:03.120 --> 0:09:05.880 At He said, the gunman took his own life. It's 0:09:05.880 --> 0:09:09.120 a tragic discovering in a horrific crime. Four family members 0:09:09.160 --> 0:09:13.160 kidnapped from a business in central California have been found dead. 0:09:13.360 --> 0:09:16.480 Merced County Sheriff Vernon Mornker has said last night that 0:09:16.600 --> 0:09:20.080 one suspect is hospitalized after trying to kill himself, but 0:09:20.240 --> 0:09:24.320 there may be other suspects just lived inside. Because this 0:09:24.400 --> 0:09:27.080 was completely totally senseless. We have a whole family wiped 0:09:27.080 --> 0:09:30.400 out and for what we don't know yet. Authorities had 0:09:30.440 --> 0:09:33.920 released surveillance video of a man kidnapping the baby, the 0:09:34.040 --> 0:09:37.760 child's mother, father, and uncle. On Monday. North Korea fire 0:09:37.840 --> 0:09:41.360 two suspected short range ballistic missiles today towards waters where 0:09:41.440 --> 0:09:45.400 US aircraft carrier had been deployed, ratcheting up tensions in 0:09:45.440 --> 0:09:48.480 the region. It came shortly after North Korea condemned the 0:09:48.520 --> 0:09:52.640 Biden administration for redeploying the USS Ronald Reagan aircraft carrier 0:09:53.160 --> 0:09:56.520 to a group of waters east of the Peninsula. Global 0:09:56.520 --> 0:09:58.840 News twenty four hours a day on air and on 0:09:58.880 --> 0:10:01.720 Bloomberg Quicktake Power about more than twenty seven hundred journalists 0:10:01.720 --> 0:10:04.520 and analyists more than a hundred twenty countries. Michael barrb. 0:10:04.600 --> 0:10:11.400 This is Bloomberg Nathan. Thank you, Michael. Tune up to 0:10:11.480 --> 0:10:13.800 five ten on Wall Street time for the Bloomberg Sports Update. 0:10:13.800 --> 0:10:15.679 Good morning, John Stashow, Good morning. The eighth of the 0:10:15.679 --> 0:10:18.720 baseball regular season is over. The Dodgers won a hundred 0:10:18.800 --> 0:10:20.719 and eleven games, the most of the Nation of the 0:10:20.800 --> 0:10:23.960 Lakes since the nineteen o six Cubs, Mats and Braves 0:10:24.000 --> 0:10:26.920 both won a hundred one finished tied for first, but 0:10:27.000 --> 0:10:30.280 Atlanta won the season series ten to nine, and that's 0:10:30.280 --> 0:10:32.280 why the Braves have the first round by and the 0:10:32.320 --> 0:10:34.240 Mets have to play a best of three Wild Cards 0:10:34.280 --> 0:10:37.080 series with San Diego. All the games at City Field. 0:10:37.080 --> 0:10:39.800 The openers tomorrow night with a terrific pitching matchup. It 0:10:39.800 --> 0:10:43.160 will be maxters or against the Padres, you Darvish. Mets 0:10:43.160 --> 0:10:46.280 finished up beating Washington nine to two. Jeff McNeill got 0:10:46.280 --> 0:10:48.080 the day off and he was able to just barely 0:10:48.440 --> 0:10:51.360 pulled off the Dodgers Freddie Freeman and win the National 0:10:51.440 --> 0:10:54.679 League batting title. McNeil hit three twenty six. He hit 0:10:54.720 --> 0:10:59.200 two forty nine. Last season of hard work. Um, you know, 0:10:59.280 --> 0:11:01.079 trying to get back to who you know the player 0:11:01.080 --> 0:11:02.679 I knew I could be you know, after last year, 0:11:02.679 --> 0:11:04.680 and the last year wasn't a great year for me, 0:11:04.800 --> 0:11:07.360 so um, you know I kind of wanted to, you know, 0:11:07.400 --> 0:11:10.080 get back to you know who I am, and um, 0:11:10.120 --> 0:11:11.920 you know, it was lucky enough to be rewarded for that. 0:11:12.080 --> 0:11:15.080 Aaron Judge didn't play the Yankee season ending four two 0:11:15.160 --> 0:11:17.400 loss in Texas, so he did not win the batting 0:11:17.400 --> 0:11:19.439 title that would have given him the Triple Crown. Judge 0:11:19.440 --> 0:11:22.080 been a second to the Twins. Luisa ray As, the 0:11:22.120 --> 0:11:24.400 guy who caught the ball that Judge hit for his 0:11:24.440 --> 0:11:27.640 record breaking sixty second on run, has already been offered 0:11:27.679 --> 0:11:30.520 two million dollars by a sports member abilia auction house 0:11:30.559 --> 0:11:32.959 at Giants practice before they leave for London. Daniel Jones 0:11:33.320 --> 0:11:35.679 limited with his ankle, Andrea Jones has not yet been 0:11:35.720 --> 0:11:37.439 ruled out for the game of Green Bay. A welcome 0:11:37.480 --> 0:11:40.160 site the return of center Nick Gates, who in Week 0:11:40.200 --> 0:11:42.880 two last year suffered a fractured leg injury that required 0:11:42.960 --> 0:11:45.920 seven surgeries. It was feared was gonna end Gates his 0:11:46.000 --> 0:11:48.760 career Week five against Tonight Colts and Broncos in Denver. 0:11:49.120 --> 0:11:51.760 John Stash Neward Bloomberg Sports Nathan, thank you, john S 0:11:51.840 --> 0:11:53.960 and P futures are lower by twelve points now, Deal 0:11:54.040 --> 0:11:56.760 futures down eight two nast AT futures down thirty one points. 0:11:56.800 --> 0:11:59.000 Nime X screwed up a third percent now at eight 0:11:59.040 --> 0:12:02.040 eight oh four. A Bear Earl talk about Opex decision 0:12:02.080 --> 0:12:08.520 next with Will Kennedy of Bloomberg News Bloomberg eleven three 0:12:08.559 --> 0:12:12.400 oh weather sunny, low seventies today and tomorrow for the weekend. 0:12:12.559 --> 0:12:15.079 It's still gonna be sunny, but cooler. We're only around 0:12:15.120 --> 0:12:19.679 sixty degrees Saturday, low sixties on Sunday. Currently fifty six 0:12:22.120 --> 0:12:25.480 markets headlines and breaking news twenty four hours a day 0:12:25.640 --> 0:12:28.319 at Bloomberg dot com for the Bloomberg Business Out and 0:12:28.480 --> 0:12:37.880 at Bloomberg Quick Tape. He's a Bloomberg Business Lash and 0:12:38.000 --> 0:12:41.720 I'm Karen Moscow. US Dock Index futures a race gains 0:12:41.720 --> 0:12:45.600 and are moving lower. European stocks they're trading modestly higher. 0:12:45.640 --> 0:12:49.640 Investors are debating whether higher oil prices were further weekend growth, 0:12:49.679 --> 0:12:53.280 potentially slowing Central banks rate high cycles. We checked the 0:12:53.280 --> 0:12:56.160 markets every fifteen minutes throughout the trading day on Bloomberg 0:12:56.240 --> 0:12:59.200 U S and P futures. They're down seventeen points now 0:12:59.320 --> 0:13:02.320 dal futures on A hundred twenty and nasday features down fifty. 0:13:02.360 --> 0:13:04.959 The decks in Germany's up tenth of up percent ten, 0:13:05.040 --> 0:13:07.480 your treasury down to thirty seconds, you have three point 0:13:07.520 --> 0:13:09.880 seven six percent, the yield on the two year four 0:13:09.920 --> 0:13:12.840 point one six percent. Nine makes crude oil is up 0:13:12.880 --> 0:13:15.079 two tenths per cent, or sixteen cents at eighty seven 0:13:15.120 --> 0:13:17.600 dollars ninety three cents of Daryl call make schooled up 0:13:17.600 --> 0:13:20.079 a quarter percent or three dollars ninety cents at seventeen 0:13:20.120 --> 0:13:23.319 twenty four seventy announced the euro point in nine eight 0:13:23.440 --> 0:13:25.760 nine one against the dollar, British bound one point one 0:13:25.800 --> 0:13:28.840 to night the one forty four point seven one, and 0:13:28.880 --> 0:13:31.079 looking at bitcoin, it's up eight tens of per cent 0:13:31.440 --> 0:13:34.800 at twenty thousand, one hundred fifty dollars, and that's a 0:13:34.840 --> 0:13:37.599 Bloomberg business flash. Now here's Michael Barr with more on 0:13:37.760 --> 0:13:40.839 what's going on around the world. Michael, good morning, Good morning, Karen. 0:13:40.880 --> 0:13:44.079 We're learning more about a tragedy in northeastern Thailand. More 0:13:44.120 --> 0:13:46.880 than thirty people were killed today when a gunman opened 0:13:46.960 --> 0:13:51.720 fire in a childcare center. At least thirty people were killed, 0:13:51.760 --> 0:13:55.440 including children, before the gunman took his own life, according 0:13:55.480 --> 0:14:01.520 to authorities. President Biden visited the hurricane ravaged area in 0:14:01.679 --> 0:14:05.480 Florida from Ian He says that they are going to 0:14:05.520 --> 0:14:07.680 be there every step of the way to help the 0:14:07.760 --> 0:14:12.840 victims of that storm. In baseball, the last game of 0:14:12.880 --> 0:14:15.679 the regular season, the Yankees lost Mets one over the 0:14:15.800 --> 0:14:19.640 Nationals nine to the Red Sox loss. The Orioles split 0:14:19.680 --> 0:14:22.320 a double header with the Blue Jays. Global News twenty 0:14:22.320 --> 0:14:25.080 four hours a day on air end on Bloomberg quick Take, 0:14:25.120 --> 0:14:28.120 powered by more than journalists and analysts more than a 0:14:28.160 --> 0:14:32.400 hundred twenty countries. Michael Barr, this is Bloomberg Nathan. Thanks Michael. 0:14:32.440 --> 0:14:34.920 It's five nineteen on Wall Street Live from the Bloomberg 0:14:34.920 --> 0:14:37.880 Interactive Broker Studios. This is Bloomberg Daybreak, and we are 0:14:37.920 --> 0:14:41.160 continuing to watch oil prices this morning, following the decision 0:14:41.200 --> 0:14:44.240 from OPEC and its allies to cut production by two 0:14:44.240 --> 0:14:47.400 million barrels a day starting next month. Also keeping an 0:14:47.400 --> 0:14:50.240 eye on it for us is Will Kennedy, Senior Executive 0:14:50.320 --> 0:14:54.200 editor for Energy and Commodities for Bloomberg News, who joins 0:14:54.280 --> 0:14:57.360 us now, Well, good morning. We're seeing kind of modest 0:14:57.520 --> 0:15:00.760 gains I think across the crude mark it this morning 0:15:00.840 --> 0:15:04.080 is there's some sort of indecision right now for oil 0:15:04.120 --> 0:15:07.160 traders about what this production cut is going to mean 0:15:07.480 --> 0:15:10.880 going forward for price not necessarily. I think what we 0:15:10.920 --> 0:15:13.320 should do is look at the move over the several 0:15:13.400 --> 0:15:16.560 days since big price cuts started to be discussed amongst 0:15:16.560 --> 0:15:18.360 OPEC members. So if we look at the week as 0:15:18.400 --> 0:15:21.280 a whole, we're up about ten percent, which is a 0:15:21.360 --> 0:15:24.880 very meaningful move in the price. You know, almost eighty 0:15:24.920 --> 0:15:27.960 eight dollars in the New York contract, close to ninety 0:15:27.960 --> 0:15:31.480 four in the vent contract in London. Uh, these prices 0:15:31.480 --> 0:15:34.760 are significantly higher from where they were a week ago. 0:15:34.880 --> 0:15:37.000 So the market has responded to an over a number 0:15:37.040 --> 0:15:40.320 of days as as it became clear that a large 0:15:40.360 --> 0:15:43.880 cut would be the result of the meeting, so people 0:15:43.880 --> 0:15:46.600 were buying into it. And then when the meeting ended, 0:15:46.640 --> 0:15:50.880 as as people have been predicted, UMU, the frice sort 0:15:50.880 --> 0:15:53.000 of settled down a little bit. This is a large 0:15:53.000 --> 0:15:55.560 cut sort of on paper though, right because there are 0:15:55.600 --> 0:15:58.520 a lot of members of the OPEC cartel that still 0:15:58.760 --> 0:16:02.120 haven't been meeting. They're action quotas. That's why two million 0:16:02.160 --> 0:16:05.200 bowels does not mean two million bowels. Two million bowels 0:16:05.200 --> 0:16:08.360 probably means something between eight hundred thousand and one million 0:16:08.360 --> 0:16:11.360 bows a day. For the reasons that you say that 0:16:11.440 --> 0:16:14.840 many countries aren't already meeting their obligations, so they won't 0:16:14.840 --> 0:16:17.640 be cutting after this agreement, but I wouldn't see that 0:16:17.680 --> 0:16:22.080 as a reason not to believe this is significant. Global 0:16:22.120 --> 0:16:24.360 al demand is probably just over one hundred million bolls 0:16:24.360 --> 0:16:27.000 a day, so potentially you're talking about taking almost one 0:16:27.000 --> 0:16:30.640 percent of the world's oil off the market, and that 0:16:30.720 --> 0:16:33.840 can have a significant impact. And of course the rationale 0:16:33.880 --> 0:16:38.080 that we're hearing from members of OPEC is the uncertainty 0:16:38.200 --> 0:16:42.440 around the outlook for oil demand is what's sparking this move. 0:16:42.880 --> 0:16:45.360 I guess given the war in Ukraine, does that sort 0:16:45.360 --> 0:16:51.480 of hold water that argument from ALPEC. It's one, it's 0:16:51.480 --> 0:16:54.000 one way to look at the market, um but there 0:16:54.000 --> 0:16:56.800 are factors in both directions. So yes, there's been a 0:16:56.880 --> 0:17:01.680 lot of uncertainty about the direction of demand as people 0:17:01.720 --> 0:17:04.040 worry that the global economy is slowing in the face 0:17:04.080 --> 0:17:07.320 of tighter monetary policy, and that title monitory policy itself 0:17:07.320 --> 0:17:10.280 can wear and oil prices. A stronger doyle. The stronger 0:17:10.320 --> 0:17:12.880 dollar has been historically been bad file prices. And one 0:17:12.880 --> 0:17:15.560 thing that we've seen in recent weeks is that when 0:17:15.560 --> 0:17:18.760 the dollar was rallying hard, oil prices were falling. So 0:17:18.840 --> 0:17:21.359 from that perspective, there has been some weakness. And you 0:17:21.359 --> 0:17:24.119 can see the argument from the overduces that they wanted 0:17:24.160 --> 0:17:26.639 to show up vices, but there are many arguments that 0:17:26.720 --> 0:17:31.440 point in the other direction. Inventories globally remain relatively low. 0:17:32.000 --> 0:17:35.480 The US has emptied a lot of its strategical strategic 0:17:35.520 --> 0:17:38.800 petroleum reserved to keep prices down. How much further can 0:17:38.840 --> 0:17:42.159 it go through the winter? Chinese demand could pick up 0:17:42.200 --> 0:17:46.480 after the National Congress in Beijing as they backtrack from 0:17:46.720 --> 0:17:51.440 COVID zero, perhaps, So there are reasons on the other 0:17:51.480 --> 0:17:53.280 side as well. And I don't think the outlook through 0:17:53.320 --> 0:17:57.480 the winter is necessarily clear. Yeah, it certainly isn't given 0:17:58.000 --> 0:18:01.480 the energy crunch that Europe is face sing particularly, But 0:18:01.600 --> 0:18:05.400 when we think about elevated oil prices and the the 0:18:05.600 --> 0:18:09.920 OPEC cartel trying to shore up oil prices, I mean, 0:18:09.920 --> 0:18:11.920 what does that mean given that we're looking at Brent 0:18:12.040 --> 0:18:14.399 above a ninety handle right now? I mean, that seems 0:18:14.400 --> 0:18:18.000 pretty elevated, doesn't it. It is, And if you look 0:18:18.040 --> 0:18:20.840 at product prices, especially prices that people pay for diesel, 0:18:20.920 --> 0:18:22.639 which is what they would use if they're trying to 0:18:22.640 --> 0:18:26.119 replace ultra expensive natural gas. It's what some people in 0:18:26.640 --> 0:18:29.920 the US and Europe used to heat their homes. Those prices, 0:18:30.119 --> 0:18:32.720 prices look firm, although it's worth saying we're still a 0:18:32.760 --> 0:18:35.120 long way off of you know, the prices we saw 0:18:35.240 --> 0:18:38.199 around a hundred thirty dollars in the immediate aftermath of 0:18:38.320 --> 0:18:42.760 Russian's invasion Russia's invasion of Ukraine. But it adds to 0:18:42.760 --> 0:18:47.920 a picture where energy is expensive, where consumers and businesses 0:18:47.960 --> 0:18:51.359 are already grappling, especially in Europe, with extremely high natural 0:18:51.400 --> 0:18:55.760 gas prices, of extremely high electricity prices, And it just 0:18:55.880 --> 0:18:59.840 adds to a picture of energy secure, scarcity and elevated 0:19:00.040 --> 0:19:03.159 energy costs globally. About thirty seconds left here. Are you 0:19:03.240 --> 0:19:06.960 looking for further shifts in the oil trade balance following 0:19:06.960 --> 0:19:10.720 this decision? Well, one thing that we should put on 0:19:10.760 --> 0:19:15.160 people's vedas is in early December, Russia stop. You will 0:19:15.200 --> 0:19:18.080 stop buying Russian crude oil entirely, and that will change 0:19:18.480 --> 0:19:20.600 the crude oil trade around the world. They will have 0:19:20.640 --> 0:19:23.320 to find new customers in Asia. And one key question 0:19:23.880 --> 0:19:26.360 for the market going forward is will they find those 0:19:26.359 --> 0:19:29.760 customers or will Russia be false to reduce all production 0:19:29.800 --> 0:19:33.000 because it's existing markets are closed. Thanks for this will 0:19:33.080 --> 0:19:35.720 great having you on with us. Will Kennedy, Senior Executive 0:19:35.800 --> 0:19:39.879 editor for Energy and Commodities for Bloomberg News and looking 0:19:39.880 --> 0:19:43.160 at prices now, Nimex crudes up three tenths per center 0:19:43.200 --> 0:19:45.760 twenty six cents at eighty eight oh two a barrel Brent. 0:19:45.880 --> 0:19:49.120 The international benchmark is also up about three tenths per 0:19:49.119 --> 0:19:53.080 cent at ninety three dollars sixty nine cents. Futures are 0:19:53.080 --> 0:19:56.359 moving lower. SMP futures down fourteen points, staff futures down 0:19:56.400 --> 0:20:00.320 a hundred, and NASTAC futures are lower by thirty eight points. 0:20:00.720 --> 0:20:08.320 You're listening to Bloomberg Taper Bloomberg eleven three oh weather, 0:20:08.400 --> 0:20:11.720 sunshine and low seventies today, Keep it that way tomorrow. 0:20:12.000 --> 0:20:14.720 Cooler air moves in for the weekends Saturday only getting 0:20:14.760 --> 0:20:17.960 up to near sixty degrees low sixties for Sunday. Right 0:20:17.960 --> 0:20:23.800 now fifty six in Central Park, broadcasting live from the 0:20:23.920 --> 0:20:27.840 Bloomberg Interactive Broker Studio in New York. Bloomberg e Living 0:20:27.920 --> 0:20:32.320 free to Washington, d C. Bloomberg nine to Boston, Bloomberg 0:20:32.359 --> 0:20:35.560 What All six one to San Francisco, Bloomberg nom sixteen 0:20:35.640 --> 0:20:38.240 to the country, Sirius XM to the one nine team, 0:20:38.359 --> 0:20:41.560 and around the globe, the Bloomberg Business at and Bloomberg 0:20:41.640 --> 0:20:51.240 Radio dot Com. This is Bloomberg Daybreak. It's five thirty 0:20:51.240 --> 0:20:53.520 on Wall Street. Good morning. I'm Nathan Hager and I'm 0:20:53.600 --> 0:20:56.479 Karen Moscow. We are just about four hours away from 0:20:56.520 --> 0:20:58.240 the open of US trading. Let's get you up to 0:20:58.320 --> 0:20:59.880 date on the news. You need to know what this show. 0:21:00.000 --> 0:21:03.240 Our US futures are lower in MU did action this morning. 0:21:03.520 --> 0:21:06.480 That's after stock snapped a two day winning streak yesterday. 0:21:06.720 --> 0:21:10.080 Main Stake Capital Management foundery David Kudla says, right now 0:21:10.200 --> 0:21:14.240 it's time to be defensive the classic sixty portfolio. It's 0:21:14.280 --> 0:21:18.479 down more than this year. Liquid alternatives that offer an 0:21:18.520 --> 0:21:22.119 opportunity for a positive return because of the strategies of 0:21:22.200 --> 0:21:26.520 shorting stocks actually generate positive returns. David cool Love with 0:21:26.560 --> 0:21:29.520 Mainstake Capital says it's wishful thinking to believe that rate 0:21:29.600 --> 0:21:32.720 hikes will bring down inflation anytime soon. While still Karen 0:21:32.760 --> 0:21:35.800 fed officials keep banging the drum for tighter policy, insisting 0:21:35.840 --> 0:21:38.040 they do not plan to cut rates next year. San 0:21:38.080 --> 0:21:41.520 Francisco FED president Mary Daily spoke with Bloomberg yesterday. It's 0:21:41.560 --> 0:21:44.600 also very damaging to the economy to have this level 0:21:44.640 --> 0:21:47.280 of inflation, so we're committed to bringing it down in 0:21:47.600 --> 0:21:50.440 staying the course until we're well and truly done. Mary 0:21:50.520 --> 0:21:53.240 Daly's comments about inflation are being echoed by Atlanta FED 0:21:53.280 --> 0:21:57.359 President Raphael Bostik, who also says rates need to go higher. Meantime, 0:21:57.400 --> 0:21:59.600 the price of oil is holding steady after opec a 0:21:59.640 --> 0:22:03.159 great to slash daily output by two million barrels. Saudi 0:22:03.280 --> 0:22:06.320