Speaker 1: Life from the Bloomberg Interactive Brooker Studios is Bloomberg Daybreak
Speaker 1: for Friday, October twenty one two Coming up this hour.
Speaker 1: UK leaders consider what's next after the resignation of Liszt.
Speaker 1: Trust stops look to snap a two day losing streak
Speaker 1: to close out the week. The US Ways expanding its
Speaker 1: technology ban on China, and Elon Musk reportedly plans massive
Speaker 1: job cuts at Twitter. It's a tragic end to the
Speaker 1: search for missing Princeton University student. Plus its sentencing day
Speaker 1: for Trump Alloy Steve men In for contempt Michael Barner.
Speaker 1: More ahead, I'm tryn Stashow. In sports, the Yankees lost
Speaker 1: again in Houston Trail. The ALC has stood up in
Speaker 1: the Rangers lost, Devils beat the Islanders. A big trade
Speaker 1: in the NFL. That's olds traded ahead on Bloomberg day
Speaker 1: Break on Bloomberg eleven, Free on New York, Bloomberg nine one,
Speaker 1: Washington d C, Bloomberg one oh six one, Boston, Bloomberg
Speaker 1: nine sixties and Francisco Sirius x M one nineteen and
Speaker 1: around the world. Old on Bloomberg Radio dot Com and
Speaker 1: via the Bloomberg Business. Hey Good Friday morning, I'm Nathan
Speaker 1: Hagar and I'm Karen Monstow. Us not index futures are
Speaker 1: lower this morning. We're gonna be up to five oh
Speaker 1: one on Wall Street, and we check the markets every
Speaker 1: fifteen minutes throughout the trading day. On bloomberg S and
Speaker 1: P futures down twenty two points this morning, DALN futures
Speaker 1: down a hundred twenty five and NASDACK futures down one hundred.
Speaker 1: The decks in Germany's down one and a half percent.
Speaker 1: Ten year treasury down nine thirty seconds, held four point
Speaker 1: to six percent, and they yield on the two year
Speaker 1: four point six zero percent. Nathan Karen will get more
Speaker 1: on the markets in a moment, but we begin this
Speaker 1: morning in the UK, where government leaders are weighing next
Speaker 1: steps following the resignation of Prime Minister Liz Trust. Bloomberg's
Speaker 1: You and Potts joins us live with the very latest
Speaker 1: from London. You and good morning, Good morning, Nathan and Karen.
Speaker 1: Political news moves fast in Britain at the moment. By
Speaker 1: next Friday, the country will have a fifth prime minister
Speaker 1: in less than seven years. The Conservative Party. He will
Speaker 1: choose a new leader after Liz Trust quit becoming the
Speaker 1: shortest ever serving prime minister in the history. Plans are
Speaker 1: very short contest. If lawmakers make a clear choice, we
Speaker 1: could find out as soon as Monday. Former chance that
Speaker 1: Ritchie Sanak is the current favorite with bookmakers, The odds
Speaker 1: on the second favorite candidate have shortened considerably in the
Speaker 1: past few hours. That candidate is former Prime Minister Boris Johnson.
Speaker 1: In London, immun Parts Blimberg, Break You and things that
Speaker 1: we continue to hear from current and former leaders wearing
Speaker 1: in our UK politics. Former Tory leader Michael Howard spoke
Speaker 1: to Bloomberg about the future of the Conservative Party the
Speaker 1: next twelve months so I'm doubt be going to be
Speaker 1: very difficult and very thankful. But after that, I think
Speaker 1: there's every reason to suppose that inflation will be coming down,
Speaker 1: mortgage interest rates will be coming down, and the Prime
Speaker 1: Minister will be able to say we've been to a
Speaker 1: very top of time, that we've taken the right decisions
Speaker 1: and now we're seeing the fruits of those decisions. So
Speaker 1: don't take any risks and don't that labor ruin it.
Speaker 1: Former Tory leader Michael how Words says he is a
Speaker 1: supporter of Rishi Sunac to be the new prime Minister.
Speaker 1: He also believes that Jeremy Hunter remained Chancellor trust resigned
Speaker 1: after forty four days, making her premiership the shortest in
Speaker 1: UK history. Let's stay overseas, Karen to China now, where
Speaker 1: tensions between Beijing and Washington remain in focus. The White
Speaker 1: House is now wearhing a further technology ban on China
Speaker 1: to include quantum computing and artificial intelligence. Bloomberg's John Lou
Speaker 1: reports from Beijing the Biden administration taking as many steps
Speaker 1: as possible to try to limit China's access to these
Speaker 1: emerging technologies. Quantum computing UH is still sort of an
Speaker 1: experimental field, but the implications for the future, how greatly
Speaker 1: this technology could affect the future, I think makes it
Speaker 1: an important point to for the Biden administration to focus
Speaker 1: on now. Bloombergs John lu says it's just the latest
Speaker 1: of many signs of the White House taking a harder
Speaker 1: line on China. Meantime, Nathan US Secretary of State Anthony B.
Speaker 1: Lincoln says relations with Beijing are added in election point,
Speaker 1: and he's building an international coalition to stand up against China.
Speaker 1: Bloomberg said. Baxter has that story Blincoln says, the key
Speaker 1: is starting with Taiwan. The entire world has a stake
Speaker 1: in this and making sure that there is peace and
Speaker 1: stability and along the Taiwan Straight The amount of trade
Speaker 1: and commerce that goes that straight every day is essential
Speaker 1: to the world economy. So b Lincoln says, the US
Speaker 1: is not looking for conflict with China, but the China
Speaker 1: must understand that freedom of commerce with Taiwan as a
Speaker 1: matter of survival for the global community as a whole.
Speaker 1: In San Francisco, I'm at Baxter Bloomberg Day Break, All right, ed,
Speaker 1: thank you. Now let's take a look back at market's.
Speaker 1: US futures are in the red as Wall Street looks
Speaker 1: to reverse a two day slump. Morgan Stanley chief equity
Speaker 1: strategist Mike Wilson thinks stocks may not have bottomed, but
Speaker 1: there is light at the end of the tunnel. The
Speaker 1: kind of final chapter to this bear market probably will
Speaker 1: be fast as well. If we've had this conversation three
Speaker 1: months ago, and we probably did. I thought we could
Speaker 1: have this all wrapped up by thanksg and maybe have
Speaker 1: a nice ending to the holiday period and say, okay,
Speaker 1: we can move forward. But unfortunately I think it may
Speaker 1: you know, linger into next year. Morgan Stanley's Mike Wilson
Speaker 1: says we could see a reckoning of disappointing earnings in
Speaker 1: the next quarter. Well, speaking of earnings, Nathan, we're seeing
Speaker 1: shares of Snap tumble after its latest results. They are
Speaker 1: down more than twenty six percent after reporting the company's
Speaker 1: slowest quarterly sales growth ever, and Bloomberg's Charlie Pellett has
Speaker 1: a story. The maker of the Snapchat apps said third
Speaker 1: quarter sales increase six percent to one point one three
Speaker 1: billion dollars. That was just shy of analyst savage estimate
Speaker 1: of one point one four billion dollars. The social media
Speaker 1: company spent the quarter shrinking and refocusing its business, announcing
Speaker 1: in August that it was cutting twenty of its workforce
Speaker 1: and slashing projects that don't contribute to user or revenue
Speaker 1: growth or to the company's augmented reality efforts in New York.
Speaker 1: Charlie Pellet Bloomberg Daybreak. All right, Charlie, thank you. We
Speaker 1: also have a number of headlines on Twitter this morning.
Speaker 1: Advised is on both sides that are looking to close
Speaker 1: Elon Musk's deal to buy the company by the end
Speaker 1: of the month. At the same time, Twitter is telling
Speaker 1: its staff there will not be widespread layoffs. That's after
Speaker 1: reports Musk wants to slash seventy five per cent of
Speaker 1: Twitter's workforce. Kurt Wagner covers the company from Bloomberg News,
Speaker 1: They're definitely going to be cost cuts at Twitter. I
Speaker 1: think we all know that layoffs are are widely expected.
Speaker 1: I do wonder if this is a little extreme, right.
Speaker 1: What we've seen from Elon in the past is that
Speaker 1: a lot of his estimates have been pretty extreme in
Speaker 1: terms of what he thinks for revenue or user growth,
Speaker 1: and that could be going extreme in the other direction
Speaker 1: to with cost cut. Bloomberg's Kurt Wagner says the number
Speaker 1: of layoffs Twitter might not reach sevent but could still
Speaker 1: exceed other projections. If all that wasn't enough. Elon Musk
Speaker 1: is also coming under scrutiny from the Biden administration. Sources
Speaker 1: tell us White House officials are discussing whether the U
Speaker 1: S should subject some of Musk's ventures to national security reviews,
Speaker 1: including the Twitter deal and Musk's SpaceX Starlink satellite network.
Speaker 1: Were told officials have grown uncomfortable with what they see
Speaker 1: as his increasingly Russia friendly comments. Checking shares of Twitter
Speaker 1: in the pre market right now they are plummeting down
Speaker 1: nine and a quarter per cent. SMP futures are down
Speaker 1: twenty five point, staff futures down a hundred forty eight
Speaker 1: and nastack futures are lower by a hundred twelve points.
Speaker 1: Straight ahead your latest local headlines and a check of sports.
Speaker 1: This is Bloomberg at south five oh seven on Wall
Speaker 1: Street board forty eight degrees in Central Park. Dealing with
Speaker 1: a crash in New Rochelle southbound, New England threw away
Speaker 1: at Boston Road. Details coming up in traffic First. Michael
Speaker 1: Barr is here with more on what's going on in
Speaker 1: New York and around the world. Good Friday morning, Michael,
Speaker 1: Good morning to you Nathan. A tragic end to the
Speaker 1: case of a missing Princeton University student. Missing student twenty
Speaker 1: year old Miss rock You and Nt was found dead
Speaker 1: behind some tennis courts on campus. She hadn't been seen
Speaker 1: since Friday, prompting her friends to report her missing to police.
Speaker 1: Police say a grounds employee founder body with no obvious
Speaker 1: signs of in readding. Her death does not appear suspicious
Speaker 1: or criminal in nature. And on Topsy is pending to
Speaker 1: determine her cause of depth. Thousands are expected today at
Speaker 1: the funerals for two Bristol, Connecticut police officers killed in
Speaker 1: an ambush last week. Officers from across the US and
Speaker 1: in Canada are expected to attend services with Sergeant Dustin
Speaker 1: Deamonte and Officer Alex has Me. The services start or
Speaker 1: Hamsey brother The services start at eleven am. Less than
Speaker 1: three weeks to the mid terms, President Biden paid a
Speaker 1: visit to Pennsylvania. In Pittsburgh, he greeted Democratic Senate candidate
Speaker 1: John Fetterman, predicting that he's going to win. Fetterman, Pennsylvania's
Speaker 1: lieutenant governor, is locked in a tight race with Republican
Speaker 1: doctor memit Oz. President Biden spoke at the side of
Speaker 1: a bridge that collapsed back in January, the President giving
Speaker 1: thanks for the lives that were spared when the fern
Speaker 1: Hollow Bridge went down, by the grace of God. The
Speaker 1: school was delayed that day because of snow, and it
Speaker 1: was just before rush hour, so there was less traffic
Speaker 1: than usual. It had been a normal Had it been
Speaker 1: a normal day, it would have been much much worse.
Speaker 1: The bridge is now the side of an infrastructure Package
Speaker 1: funded reconstruction project. The Pentagon pushed back on Russia's denials
Speaker 1: that it is using Iranian made drones to attack civilian
Speaker 1: targets in Ukraine. State Department spokesman Ned Price. We can
Speaker 1: confirm that Russian military personnel based in Plania have been piloted, piloting,
Speaker 1: piloting excuse me, Iranian ua V s and using the
Speaker 1: conducts kinetic strikes across Ukraine, including in strikes against Kievan.
Speaker 1: In recent days. The European Union has announce sanctions on
Speaker 1: an Iranian aerospace company, Steve Mann, in the schedule to
Speaker 1: be sentenced today, If for a contempt of Congress were
Speaker 1: refusing to comply with the subpoena issued by the Household
Speaker 1: Committee investigating the January six attack on the US Capitol,
Speaker 1: Bannon could face up to two years in prison, but
Speaker 1: the Department of Justice is recommending a lesser sentence of
Speaker 1: six months. In a two a thousand dollar fun Global
Speaker 1: is twenty four hours a day on air end on
Speaker 1: Bloomberg Quicktake power by more than twenty seven hundred journalists,
Speaker 1: analysts more than a hundred twenty countries. I'm Michael Barb
Speaker 1: This is Bloomberg. Nathan, Thanks Michael five tent on Wall Street.
Speaker 1: Time for the Bloomberg Sports up. They brought to you
Speaker 1: by try State Autie. Good morning, John Stanshower, Good morning,
Speaker 1: Nathan to LCS. Games played in Uston. The Yankees and
Speaker 1: the opener had only five hits struck out seventeen times.
Speaker 1: Game two four hits struck out thirteen times. Yankee pitching
Speaker 1: and defense with solid but done in by one Astros
Speaker 1: swinging the bat a team in the third in Everino
Speaker 1: set just about the film and the one too, swinging
Speaker 1: a three pointer good way down town. That's God. Alex
Speaker 1: Bragman with the long ball. It's three nothing Amy to call.
Speaker 1: Yank scored twice in the fourth off Rambert Valdez. It
Speaker 1: was due mostly the Valdesk committee two errors on the
Speaker 1: same play. No scoring after that. Uston won three to two.
Speaker 1: Like the opener. Yanks at the time run On in
Speaker 1: the ninth, getting and Matt Carpenters struck out. He's been
Speaker 1: up seven times in the postseason, has struck out all seven.
Speaker 1: Game three tomorrow, five o'clock start at the stadium at
Speaker 1: the Garden. Rangers have two one lead lost in overtime
Speaker 1: to San Jose three to Herrick Carlson scored for the
Speaker 1: Sharks opening mid to Voute the New Devil I'm j.
Speaker 1: Pollock scored twice New Jersey to the Islanders four to one.
Speaker 1: The next home openers tonight against Detroit. The Nets host Toronto.
Speaker 1: Arizona Cardinals scored twenty two points in a span of
Speaker 1: less than two minutes late second quarterback to back pick
Speaker 1: six is They beat the Saints forty two to thirty four.
Speaker 1: Jets and Giants, both riding three game winning streaks. Sunday
Speaker 1: facing two and four teens Denver in Jacksonville, forty Niners
Speaker 1: with a big pick up late last night and sent
Speaker 1: four draft picks, none of them first rounders, to Carolina.
Speaker 1: For Christian McCaffrey his last full healthy season two thousand nineteen,
Speaker 1: he had over a thousand yards rushing and receiving. John
Speaker 1: Stashower bloom Brook Sports, Nathan Okay, John, thank you, s
Speaker 1: and p Futures down twenty one points right now. This
Speaker 1: is Bloomberg. Bloomberg Sports is brought to you by Audie.
Speaker 1: Don't let someone else drive off in the autie model.
Speaker 1: You've always wanted visit your local tri state autie dealer
Speaker 1: to get behind the wheel of yours today, or visit
Speaker 1: Autie Offers dot com for more information, markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot com,
Speaker 1: The Bloomberg Business at and at Bloomberg Quick Tape. This
Speaker 1: is a Bloomberg Business lash and I'm Karen Moscow stocks
Speaker 1: are dropping as treasury yields continue to climb, which traders
Speaker 1: vetting the Federal Reserve and keep raising interest rates, and
Speaker 1: as investors assess the latest earnings reports. We check the
Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg
Speaker 1: s and P futures down twenty four points, DAL futures
Speaker 1: down a hundred forty four NASDAG futures down one hundred
Speaker 1: eight the decks in Germany's down one point six per cent.
Speaker 1: Can your treasury down eleven thirty seconds? He had four
Speaker 1: point to seven percent, the yield on the two year
Speaker 1: four point six zero percent. Nine x screwed oils down
Speaker 1: one on ninety eight cents at eighty three dollars, fifty
Speaker 1: three cents of arrol Co make school down seven tenths
Speaker 1: percent or eleven dollars forty cents at sixteen ounce, the
Speaker 1: euro point nine seven five four against the dollar British
Speaker 1: found one point one one three three and the end
Speaker 1: at one fifty point nine three. And look at a bitcoin,
Speaker 1: it's down four ten percent at eighteen thousand, nine hundred
Speaker 1: fifty dollars. American Express among companies scheduled to report earnings
Speaker 1: today and that's a Bloomberg business flash. Now here's Michael
Speaker 1: Barr with more on what's going on around the world. Uncle,
Speaker 1: good morning, Good morning Karen. Now that list Trust is
Speaker 1: out of ten Downing Street. Another leadership votes for the
Speaker 1: Bridges British for the second in the four months, has
Speaker 1: been triggered to decide the country's new prime minister. There's
Speaker 1: a surprising possibility for the country's struggling Conservative Party, Boris
Speaker 1: Johnson has been floated as a possible return as prime minister.
Speaker 1: The Pentagon pushed back to Russia's denials that it is
Speaker 1: using Iranian made drones to attack civilian targets in Ukraine.
Speaker 1: The European Union, as an out sanctions on an Iranian
Speaker 1: aerospace company and three Iranian generals over Iran providing Russia
Speaker 1: with drones to use in Ukraine. In baseball, the Yankees
Speaker 1: are down two games to zip in a LCS against
Speaker 1: the Astros. New York lost last night to Houston. Three two.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktach, powered by more than twenty seven hundred
Speaker 1: journalists analysts more than a hundred twenty countries. Michael barn
Speaker 1: this is Bloomberg, Nathan. Thanks Michael. It's five nineteen on
Speaker 1: Wall Street Line from the Bloomberg Interactive Broker Studios. This
Speaker 1: is Bloomberg Day Breaking. We want to get more now
Speaker 1: on the turmoil in the UK with Conservatives rushing to
Speaker 1: move past Liz Truss's run as Prime Minister. Joining us
Speaker 1: now is Richard Portis, Professor of Economics at London Business School,
Speaker 1: Academic director at a q R Asset Management Institute. Professor.
Speaker 1: It's great to speak with you this morning, although things
Speaker 1: are far from great in the UK right now. What
Speaker 1: do you make of what's happening in your country? Is
Speaker 1: there a quick fix to the damage to the British reputation? Well,
Speaker 1: we've got a little sunshine at least today in London.
Speaker 1: Aside from that, at least there's that. Yeah, aside from that,
Speaker 1: not a lot. We have a what so many people
Speaker 1: have called a moron risk premium in our guilts, that
Speaker 1: is to say, in our long long term securities government securities,
Speaker 1: and so they're higher higher than they uh, the yields
Speaker 1: are higher than they should be. Consumer confidence is terrible,
Speaker 1: consumer finances are terrible. Investment is beset by political uncertainties.
Speaker 1: Uh and um. There's a bright side of the labor
Speaker 1: market that unemployment is still low and there's no sign
Speaker 1: of a wage price spiral building up. So overall the
Speaker 1: pit sure is not great. What what policies are going
Speaker 1: to be introduced? It's hard to say, of course, since
Speaker 1: we don't know who's going to be the Prime minister.
Speaker 1: But we pretty well know who's going to be the
Speaker 1: Chancellor of the Exchequer of the chief uh financial official,
Speaker 1: and that is the one who's right there now, Jeremy Hunt,
Speaker 1: and I expect that we will see substantial fistal tightening.
Speaker 1: On the other hand, Bank of England monetary tightening might
Speaker 1: not go as far as the market seem to expect.
Speaker 1: Is this a political crisis, is it an economic crisis?
Speaker 1: Or can the two be separated? The two can't ready
Speaker 1: to be separated. As I said, I think the political
Speaker 1: uncertainty has some impact on investment behavior, on on what
Speaker 1: entrepreneurs are willing to do, what risks they're willing to
Speaker 1: take at this stage when everything is so unclear. But
Speaker 1: at the same time, Uh, the constraints on fiscal and
Speaker 1: monetary policy are so severe that what whoever comes in
Speaker 1: as prime minister, it's not going to have much wiggle room.
Speaker 1: Not much wiggle room. I mean, what can be done
Speaker 1: in terms of not just getting the fiscal policy back
Speaker 1: in order in the UK, but to bring back some
Speaker 1: form of credibility for voters and for markets in your country.
Speaker 1: How about a little political stability, a little cohesion in
Speaker 1: the governing party. Uh. If you can't have that, then
Speaker 1: you really ought to go to a general election. If
Speaker 1: they're going to continue fighting among each other, whoever they
Speaker 1: choose as prime minister, then that prime minister is not
Speaker 1: going to have much authority. And you will find in
Speaker 1: each and every vote to the House of Commons, whatever
Speaker 1: policies come forward, there's going to be a dissenting group.
Speaker 1: And if that group is allied with the Labor Party,
Speaker 1: then whatever it is won't get through. Well, what is
Speaker 1: it due to confidence though if there is a general
Speaker 1: election called early in the UK, I mean the schedule
Speaker 1: of elections has to do something for for voter confidence
Speaker 1: in some respect, doesn't it? Or or are people clamoring
Speaker 1: now for a change in in the parties. I think
Speaker 1: there is a very substantial groundswell of people saying, come on,
Speaker 1: this is enough. How many prime ministers do we need
Speaker 1: to have that aren't elected? After all, it's time for
Speaker 1: a general election. Of course, the Conservative MPs looking at that,
Speaker 1: looking at the polls say oh gosh, I don't want
Speaker 1: to go out there now because the polls are so
Speaker 1: heavily against them. But but there is a very substantial body,
Speaker 1: and I'm not speaking just for myself, a very substantial
Speaker 1: body of public opinion in this country. We would like
Speaker 1: to have a general election about thirty seconds left here, professor.
Speaker 1: Apart from the crisis of confidence just in the UK,
Speaker 1: where does all the chaos leave the country on the
Speaker 1: world stage? Oh, I think we're much diminished, not just
Speaker 1: because we left the European Union, but because we behaved
Speaker 1: so badly since we left the European Union. Uh and uh,
Speaker 1: you know it will take um a very serious prime
Speaker 1: minister and serious policies to restore some degree of credibility.
Speaker 1: Right now we look a little bit too much like
Speaker 1: a badly functioning emerging market. Wow. Well, we'll leave it
Speaker 1: there for now. Thank you for joining us this morning, Professor,
Speaker 1: really appreciate your insights. Richard Portis is Professor of Economics
Speaker 1: at the London Business School Academic director at a q
Speaker 1: R Asset Management Institute. We're expecting a pretty quick change
Speaker 1: in leadership here, with the candidates expected to be seated
Speaker 1: um as soon as Monday. Looking at the pound right now,
Speaker 1: it is weakening against the dollar. One nine SEP futures
Speaker 1: are down twenty six point, Staff futures down a hundred
Speaker 1: fifty seven. Nasdaq futures lower by a hundred nineteen. Bloomberg
Speaker 1: eleven three oh Weather sunny, low sixties today. It will
Speaker 1: be mostly sunny for much of the day Tomorrow with
Speaker 1: highs in the mid sixties. Cloud Sunday, rain by the afternoon,
Speaker 1: low sixties to end the weekend. Right now forty seven
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg Elving Freedo to Washington, d C. Bloomberg ninety nine
Speaker 1: one to Boston, Bloomberg what all six one to San
Speaker 1: Francisco Bloomberg nine six to the country, Sirius XM chto
Speaker 1: one nineteen and around the Blobe, the Bloomberg Business and
Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak and it's
Speaker 1: five thirty on Wall Street. Good morning. I'm Karen Moscow,
Speaker 1: I'm Nathan Hager. Bloomberg Daybreak brought to you by se I.
Speaker 1: Imagine your asset management firms operational infrastructure as a competit
Speaker 1: of their advantage. Let s e I show you how
Speaker 1: at se I C dot com slash I M S
Speaker 1: and we're just about four hours away from the open
Speaker 1: of US trading. Must get you up to date on
Speaker 1: the news you need to know at this hour. Well.
Speaker 1: UK government leaders are weighing next steps after the resignation
Speaker 1: of Prime Minister List Trust Oz have a Refhi, Sunac,
Speaker 1: Penny Mordaunt and Boris Johnson is the most likely candidates
Speaker 1: to replace Trust. They got reaction from former Chancellor Philip
Speaker 1: Hammon this morning. I'm not gonna say until I know
Speaker 1: who the long enough of candidates is, who I think
Speaker 1: would be the person who will most effectively deliver stability.
Speaker 1: But I don't think going back into the past and
Speaker 1: reincarnating a previous prime minister he's going to be any
Speaker 1: way to reassure markets. Farmer Chancellor Philip Hammond tells US
Speaker 1: the new UK government must avoid signaling more chaos to
Speaker 1: the market. Staying overseas care intensions between Beijing and Washington
Speaker 1: remain in focus. The White House is weighing a further
Speaker 1: technology ban on China to include quantum computing and artificial intelligence.
Speaker 1: Bloomberg's John Lou reports from Beijing. We have the earlier
Speaker 1: Defense position paper out of Washington, which again named China
Speaker 1: as the United States is top strategic competitor. What we
Speaker 1: see now is the United States the Biden administration taking
Speaker 1: as many steps as possible to try to limit China's
Speaker 1: access to these emerging technologies. Bloombergs John lu says it's
Speaker 1: another sign the White House is taking a harder line
Speaker 1: on China. Well. Looking at markets now, Nathan us future
Speaker 1: is in the red after hawk ish fed speaking, sticky
Speaker 1: inflation led to a two day slump. Treasury yields are climbing,
Speaker 1: while most major currencies weaken against the dollar and poor
Speaker 1: earnings are hitting shares of Snap. This morning, karen It
Speaker 1: reported its slowest quarterly sales growth ever. Right now, Snap
Speaker 1: shares are lower by twenty five well. Sticking with corporate news,
Speaker 1: Nathan Advisors on both sides are looking to close Elon
Speaker 1: Musk's deal to buy Twitter by the end of the month.
Speaker 1: At the same time, Twitter's telling staff there will not
Speaker 1: be widespread layoffs. That's after report said Musk wants to
Speaker 1: slash sevent of Twitter's workforce. Kurt Wagner covers the company
Speaker 1: for Bloomberg News. I would be a little bit surprised
Speaker 1: if he comes in lays off staff and that's it.
Speaker 1: It would probably be let's do layoffs, let's figure out
Speaker 1: where we want to go, and then redirected that way
Speaker 1: and Bloomberg Scurt Wagner says he still expects Musk to
Speaker 1: make big cost cuts, and as all of this is happening,
Speaker 1: sources tell us White House officials are discussing whether the
Speaker 1: US so IT is subject some of Musk's ventures to
Speaker 1: national security reviews, including the Twitter deal and his SpaceX
Speaker 1: Starlink satellite network. Straight Ahead your latest local headlines plus
Speaker 1: the check of sports. This is Bloomberg. Thanks scaring. It's
Speaker 1: five thirty three on Wall Street, forty seven degrees in
Speaker 1: Central Park. Got a crash in Rochelle Park northbound seventeen
Speaker 1: Pasaic Street. Details coming up in traffic. First Michael Barr
Speaker 1: with more on what's going on in New York and
Speaker 1: around the world. Michael, thank you very much. Nathan. Officials
Speaker 1: in Princeton, New Jersey announced they found the body of
Speaker 1: a Princeton University student who have been missing since last Friday.
Speaker 1: The body of one, a year old, Miss rock Unity,
Speaker 1: was discovered yesterday behind university tennis courts. At this point,
Speaker 1: there are no reports of foul play. The Pentagon pushed
Speaker 1: back on Russia's denials that it is using Iranian made
Speaker 1: drones to attack civilian targets in Ukraine. The European Union
Speaker 1: has announced sanctions on an Iranian aerospace company and three
Speaker 1: Iranian generals over Iran providing Russia with drones to use
Speaker 1: in Ukraine. Pentagon spokesman Brigadier General pat Ryder, It's sad
Speaker 1: Iranian forces are supporting Russian military drone operations and occupied
Speaker 1: areas of Ukraine. We continue to see Iran be complicit
Speaker 1: in terms of exporting terror not only in the Middle
Speaker 1: East region, but now also to Ukraine. General Writers says
Speaker 1: though Ukrainian forces have been effective in shooting the drones down.
Speaker 1: The two New York gubernatorio candidates attended the Al Smith
Speaker 1: Dinner last night in New York City. Governor Kathy hoh
Speaker 1: Cool faces Republican Representative Lee Zelden. Pole shows Elden, who
Speaker 1: has made crime a major issue in the campaign, closing
Speaker 1: a big gap against local President Biden was in Pittsburgh
Speaker 1: at the site of a bridge collapse that happened back
Speaker 1: in February or January, now the site of an Infrastructure
Speaker 1: Package funded reconstruction project. The presidentality rebuilding the progress on
Speaker 1: the fern Hollow Bridge, saying it's only the beginning. We're
Speaker 1: finally getting to it. We're getting it done. We finally
Speaker 1: decided and instead of being ranked number thirteen in the world,
Speaker 1: thirteen in the world in from the United States, thirteen
Speaker 1: in the world in infrastructure, we should be ranked number one.
Speaker 1: The president campaign for Democratic Senate candidate John Sederman, who
Speaker 1: is in a tank race with Republican doctor mement Oz.
Speaker 1: Trump allied Steve Bannon Face is sentencing today for a
Speaker 1: contempt of Congress or refusing to comply with a subpoena
Speaker 1: issued by the House elect Committee investigating the January sixth
Speaker 1: attack on the US Capital. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered more
Speaker 1: than seven hundred journalists and analysts more than a hundred
Speaker 1: twenty countries. Michael Barr and this is Bloomberg. Thanks Michael
Speaker 1: five on Wall Street Time for the Bloomberg Sports. Something
Speaker 1: to you if I try stayed out here with John
Speaker 1: Sten shown. All right, Nathan. The Yankees obviously in a hole.
Speaker 1: To win the ALCS. They have to win four out
Speaker 1: of five from an Astro's team that has not lost
Speaker 1: any of their five postseason games so far. After Houston
Speaker 1: won the opener four to two or three to two
Speaker 1: win in Game two, Alex Bregman a three run over
Speaker 1: off Luis Severino, third in Yanks got two in the
Speaker 1: fourth off Framburt Valdez. His two errors on the same
Speaker 1: play helped the Yanks out. There was a fleeting moment
Speaker 1: eighth didn't The Yanks had taken the lead. A man
Speaker 1: on for Aaron Judge on a swing that looked like
Speaker 1: one of the sixty four home runs Judge has hit
Speaker 1: this season, but it was caught at the wall in
Speaker 1: right field. Judge thought the wind kept it in the park.
Speaker 1: They usually have the roof closed and Houston with the
Speaker 1: head it open. Last night, the Yanks in two games
Speaker 1: have struck out thirty times. Judge hopeful to hitting can
Speaker 1: come to life, and we got a great offense. I
Speaker 1: think we just gotta go back to you know what
Speaker 1: a Scott got us in this position, what helped us
Speaker 1: one in division, and you know we'll be where we
Speaker 1: want to be. You know, that's contact or that's moving
Speaker 1: guys over. If it's um with that big hit, we'll
Speaker 1: figure it out and we're inter beating. Tomorrow's game three,
Speaker 1: the stadium starts at five o'clock. Derrick Cole will pitch.
Speaker 1: Rangers lost in overtime to San Jose three to two.
Speaker 1: The Sharks came in owen five. Devils beat the Islanders
Speaker 1: four to one. The Knick's home openers tonight against Detroit.
Speaker 1: The Nets are home for Toronto, NFL. Arizona outscored in
Speaker 1: New Orleans forty two to thirty four. A big trade
Speaker 1: swung late last night. Carolinas one in five just fired
Speaker 1: its coach, and the Panthers sent star running back Christian
Speaker 1: McCaffrey to San Francisco. He was a star at Stanford.
Speaker 1: The forty Niners coaches Kyle Shanahan, McCaffrey's father played for
Speaker 1: Shanahan's father for nine years, and Denver. The Panthers get
Speaker 1: four draft picks, but no first rounders. John Stay Bloomberg
Speaker 1: sports Nathan, Thank you, John, five thirty seven on Wall
Speaker 1: Street Time for the Trice State Business Report with Bloomberg
Speaker 1: Citdney's Pellegrini. The debate over that possible Times Square casino
Speaker 1: isn't and suffying. The New York Times says the Broadway
Speaker 1: League is among those opposed to a Caesar's palace in
Speaker 1: the area and made concerned casino could steal the show,
Speaker 1: but the owner of Junior's Cheesecake and other restaurants among
Speaker 1: those supporting Times Square gambling. We'll see if efforts by
Speaker 1: New York based Revlon to kiss and makeup with investors
Speaker 1: becomes challenge. Shares of the bankrupt cosmetics company being delisted
Speaker 1: from the New York Stock Exchange, the meme stock favorite
Speaker 1: will keep trading over the counter. Granwich based warehouse operator
Speaker 1: g XO Logistics plans to hire about four thousand workers.
Speaker 1: The Connecticut company is preparing for the holiday shopping season.
Speaker 1: And while he was President, Donald Trump cut back on
Speaker 1: a big homeowner attacks benefit called the salt deduction, and
Speaker 1: that hurt many homeowners in the Tri State area. And
Speaker 1: now New Jersey Republicans are slamming Democrats for failing to
Speaker 1: undo Trump's move and uncap that homeowner benefit. With the
Speaker 1: Tri State Business Report, I'm Dens Pellegrini's on Wall Street.
Speaker 1: Bloomberg Radio is on the air from San Francisco to
Speaker 1: New York, London to Hong Kong. Let's check in with
Speaker 1: our global news team for some of the top stories
Speaker 1: heard on our three hundred affiliate radio stations around the world.
Speaker 1: I'm Gina Servettian for w c CEO in Minneapolis. I'm
Speaker 1: reporting that middle managers are exhausted on Corney Donahoe. On
Speaker 1: w h A S and Louisville, Whirlpool cuts its earnings
Speaker 1: outlook on inflation and fallon demand. I'm Denise Kellgren and
Speaker 1: on w w J in Detroit, I'm reporting on carbonas
Speaker 1: Michigan license remaining suspended. I'm Wendy Gillette and on w
Speaker 1: b Z in Boston, I'll be reporting on challenges to
Speaker 1: the student loan forgiveness program. I'm Steve Potus on K
Speaker 1: and X to Los Angeles. We're talking about how artificial
Speaker 1: intelligence is making more decisions about what you'll pay to fly.
Speaker 1: On I'm Steven Carol and Bloomberg d AB Digital Radio
Speaker 1: and London, we've been reporting on the jostling among conservative
Speaker 1: MPs to win supports become the next Prime Minister. Those
Speaker 1: are some of the stories our twenty undred Bloomberg journalists
Speaker 1: and analysts are working on this morning. Around the world.
Speaker 1: It's five thirty nine on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by
Speaker 1: the Bloomberg Editorial Board. Because the US has a shortage
Speaker 1: of nurses, hospitals have turned to staffing agencies to fill
Speaker 1: the gap. Now, some lawmakers want to investigate if the
Speaker 1: rise of so called travel nurses who work on contract
Speaker 1: has harmed the health care industry. A better question to
Speaker 1: ask is why more people aren't entering the field in
Speaker 1: the first place. One reason is a lack of funds
Speaker 1: for training. In one US nursing schools turned away more
Speaker 1: than ninety thousand applications because they didn't have enough educators
Speaker 1: or clinical placement sites. Congress should expand tuition reimbursement for
Speaker 1: nurses who teach or commit to work in shortage areas.
Speaker 1: Helping aspiring nurses enter the profession wouldn't just reduce reliance
Speaker 1: on contractors. It would strengthen the entire US healthcare system.
Speaker 1: The editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, Slash
Speaker 1: Opinion or Opie I n Go on the Bloomberg Terminal.
Speaker 1: This has been Bloomberg Opinion. Bloomberg Opinion editorials can be
Speaker 1: heard every week at this time. Terminal Customers can read
Speaker 1: more at op I n Go. And The Bloomberg Sports
Speaker 1: Report was brought to you by Audie. Don't let someone
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Speaker 1: dot com for more information, markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot com, the
Speaker 1: Bloomberg Business Out and at Bloomberg Quick tape. This is
Speaker 1: a Bloomberg business blash and I'm Karen Moscow stocks are
Speaker 1: dropping as treasury yields continue to climb. Which trader is
Speaker 1: getting the feeder reserve book give raising interest rates? This
Speaker 1: investors assess the latest earnings reports. We check the markets
Speaker 1: every fifteen minutes throughout the trading day. On bloomberg SMP
Speaker 1: future is down about twenty three points down, futures down
Speaker 1: a hundred thirty eight nastack futures down one hundred the
Speaker 1: decks in Germany's down one point six percent. Ten year
Speaker 1: treasury down eleven thirty seconds. He had four point to
Speaker 1: seven percent yield on the two year four point six
Speaker 1: zero percent. Nine X Secret oil is down four tens
Speaker 1: percent or thirty six cents at eighty four dollars fourteen
Speaker 1: cents of barrel coms goal down half percent or eight
Speaker 1: dollars fifty cents at sixteen twenty eight thirty announce the
Speaker 1: euro point nine seven four zero against the dollar, British
Speaker 1: found one point one one two two and again one
Speaker 1: fifty point nine six and Bitcoin is down three ten
Speaker 1: percent at eighteen thousand, nine hundred dollars. That's a Bloomberg
Speaker 1: business Flash. Now here's Michael Barr with more on what's
Speaker 1: going on around the world. Michael Karen, thank you very much.
Speaker 1: Ukrainian President zal Lensky Warren today Russia maybe planning to
Speaker 1: frame Ukraine for an attack on the Russian controlled city
Speaker 1: of Curson in the coming days. As Ukrainian residents are
Speaker 1: trying to recover from this week's shellings, President Zelinski is
Speaker 1: warning of a quote larger scale disaster. He says the
Speaker 1: Russians have now packed a major damn with explosives. Scotland's
Speaker 1: first minister called for an early general election after UK
Speaker 1: Prime Minister Liz Trust resigned following weeks of political and
Speaker 1: economic turmoil. In baseball, the Yankees are down two games
Speaker 1: to ZIP against the Astros and the a l CS.
Speaker 1: New York lost last night to Houston three two and HL.
Speaker 1: The Devils beat the Islanders for one. The Rangers and
Speaker 1: Capitals lost the Bruins one. NFL, the Cardinals beat the
Speaker 1: Saints thirds of Night Football forty four. Big trade. The
Speaker 1: Panthers traded running back Christian McCaffrey to the forty Niners
Speaker 1: in exchange for draft picks. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more of than twenty seven hundred journalists an analysts and
Speaker 1: more than a hundred twenty countries. I'm Michael bar This
Speaker 1: is Bloomberg, Nathan. Thanks Michael. It's five forty nine on
Speaker 1: Wall Street Live from the Bloomberg Interactive Broker Studio. This
Speaker 1: is Bloomberg Day Break. Let's take a look now at
Speaker 1: this market. We're joined by Anica Gupta, director of Economic
Speaker 1: Research at Wisdom Tree. Anica, it's great to speak with
Speaker 1: you this morning. We're watching futures fall and watching treasury
Speaker 1: yields climbed to levels that we haven't seen since before
Speaker 1: the Great Financial Crisis. Now with the tenure at four
Speaker 1: to seven, how deep could this bond sell off go?
Speaker 1: Very good morning, Nathan, Yes, you're right, Um, you know,
Speaker 1: yields are rising to you know, at a pace that
Speaker 1: we haven't seen since a very long time, and that's clearly, uh,
Speaker 1: you know, having a big implication on the dollar, which
Speaker 1: is essentially reaking havoc on risk assets as we can
Speaker 1: see this morning. Um, you know, clearly there's a lot
Speaker 1: of focus being paid on the earnings results that are
Speaker 1: coming in and it's been quite mixed so far. We
Speaker 1: started out quite strong, but now we're getting a lot
Speaker 1: of uh, you know, guidance coming in from from come
Speaker 1: benneys across Europe and the U S which is highlighting
Speaker 1: uh you know, a bit of a slowdown. So that
Speaker 1: is definitely also a denting sentiment. And we you know,
Speaker 1: we were expecting that to happen, so it's quite in
Speaker 1: line with our view. It was centree in terms of,
Speaker 1: you know, the path we are taking going forward, what
Speaker 1: is that path and where do you see stocks going
Speaker 1: at this point? I mean, a lot of the debate
Speaker 1: going on right now is whether we have hit bottom
Speaker 1: or whether the bottom could be coming in the next
Speaker 1: few months. Here. What are you looking for? Well, you know,
Speaker 1: a lot of it has been predicated on the path
Speaker 1: being taken by the FED. You know, although the FED
Speaker 1: is the central bank for the US, it is also
Speaker 1: the central bank for the rest of the world. And um,
Speaker 1: you know, the the two prints that we've been we
Speaker 1: received in the past two weeks, you know, the Labor
Speaker 1: Market report alongside the CPO inflation report. You know, did
Speaker 1: pencil in and did cement the fact that the FED
Speaker 1: is going to be a lot more Hawki is moving
Speaker 1: into your end UM and as a consequence of that,
Speaker 1: that you know, pretty much tells us that the dollar
Speaker 1: is going to remain strong and the strong dollar is
Speaker 1: going to have an impact on UM, you know, on
Speaker 1: US corporates earnings results. It is going to have pressure
Speaker 1: given uh, you know, the international footprint that a number
Speaker 1: of US companies do have. UM. At the same time,
Speaker 1: if you if you look across assets, uh, you know,
Speaker 1: commodities are being impacted by this very strong dollar. Uh
Speaker 1: as you can see, you know, we've seen quite a
Speaker 1: strong correction taking place across the commodity spectrum. So UM,
Speaker 1: I think our view is that that goal for capitulation
Speaker 1: is is you know, pretty much being seen across the markets.
Speaker 1: I don't think we've seen a bottom yet. We're likely
Speaker 1: to see your further correction as we navigate our way
Speaker 1: through Q three earning season. And it's also going to
Speaker 1: provide a lot more clarity to investors is to where uh,
Speaker 1: you know, these these different markets opposition and clearly in
Speaker 1: this time of turmoil that we're seeing, China isn't helping
Speaker 1: it all. You know, China is usually that US. You
Speaker 1: know that that rescuer of last resort that we you
Speaker 1: know often have. But this time around, even though we're
Speaker 1: having you know, in the midst of the Congress Party meeting,
Speaker 1: which is usually has been a tail winning for markets,
Speaker 1: as you know, they we get an idea of the
Speaker 1: policy path ahead. Um. You know, we aren't seeing anything
Speaker 1: very positive coming out, you know, from that Congress Party meeting. Uh.
Speaker 1: It really looks like the you know, the the focus
Speaker 1: is being on, uh for is being on you know,
Speaker 1: trying to preserve the state uh and as opposed to
Speaker 1: actually helping uh, you know, boost corporate profits. Um. And
Speaker 1: I think there's going to be a lot more being
Speaker 1: going forward. Only about thirty seconds left here, Onica, But
Speaker 1: with the financial conditions tightening the way they are now,
Speaker 1: is there a risk of the Fed overshoots on policy? Um,
Speaker 1: there is a big, big risk that the Fed overshoots
Speaker 1: on policy. However, you know, the the the overarching reason
Speaker 1: that that's allowing them to do this is we haven't
Speaker 1: seen a meaningful decline come about an inflation and hence
Speaker 1: that just keeps building up their case for for continuing
Speaker 1: this aggressive monetary policy path. Um, which is why you
Speaker 1: know we've been seeing increasing calls is something to break
Speaker 1: to stop the FED from being so aggressive in its path. Um.
Speaker 1: We did see that in the UK, but that was
Speaker 1: very much a UK central focus issue, which was you know,
Speaker 1: based on the more accommodated fiscal policy policy that we've seen.
Speaker 1: Um And the only thing that we could side is,
Speaker 1: you know, a liquidity problem in the bond market that
Speaker 1: could allow the FED to stop. Thanks Sonica, great having
Speaker 1: you on with the Sonica Gupta with Wisdom Trade. Karen, Right, Nathan,
Speaker 1: it is father to day four on well Stray. Time
Speaker 1: for the Bloomberg Law Report, brought to you buy American
Speaker 1: Arbitration Association. Business disputes are inevitable, Resolve faster with the
Speaker 1: American Arbitration Association, the global leader in alternative dispute resolution
Speaker 1: for over ninety years. More at a dr dot Org.
Speaker 1: Let's get to the legal stories we're watching this morning
Speaker 1: with Bloomberg Jeff Bellinger. Apple struck back at Massimo, accusing
Speaker 1: the medical technology firm of secretly copying the Apple Watch
Speaker 1: and trying to block imports while it prepared to launch
Speaker 1: its own watch. A federal judge in Nevada rule that
Speaker 1: a lawsuit accusing MGM Resorts International of mismanaging. It's for
Speaker 1: a one K plan will move forward as a class action.
Speaker 1: Night Transportation reached a four hundred fifty thousand dollar deal
Speaker 1: to resolve allegations by truck drivers who say the company
Speaker 1: owes them back wages. Bloomberg Law everything you need, all
Speaker 1: on one legal research platform, including guidance analysis and Bloomberg
Speaker 1: Market Intelligence. Find out more at Bloomberg Law dot com. Jeff,
Speaker 1: thank you Now. Another legal story we're watching. There's a
Speaker 1: new front in the bitter legal battle between Starbucks and
Speaker 1: the Workers Union, which is dozens of pending complaints with
Speaker 1: the National Labor Relations Board accusing Starbucks of violating federal
Speaker 1: labor law and its efforts to deal with the union
Speaker 1: allegations that Starbucks denize I grew up A Starbucks employees
Speaker 1: in South Carolina are suing the company for defamation over
Speaker 1: its response to a union protest. The employees accused Starbucks
Speaker 1: of falsely and maliciously portraying them as criminals in response
Speaker 1: to a confrontation in which they presented a letter of
Speaker 1: demands to their store manager, who then reported them to police.
Speaker 1: For more Bloomberg's doing. Grosso Speaks, a labor law expert
Speaker 1: Kate Andreas, the professor at Columbia Law School. A defamation
Speaker 1: claim in a union organizing effort is certainly unusual and
Speaker 1: got a lot of attention, including from Senator Bernie Sanders.
Speaker 1: But is it effective legally? Yeah, So the allegations in
Speaker 1: this case are really pretty stunning. The employer apparently accused
Speaker 1: workers of trying to kidnap him without any evidence according
Speaker 1: to the Least report. So the workers seemed to be
Speaker 1: seeking to pursue a death Mason claim because that gives
Speaker 1: them more ability to when remedies than proceeding under the
Speaker 1: National Labor Relations Act, because state law includes greater penalties
Speaker 1: for violations of defamation law than labor law allows. And
Speaker 1: I think their argument is that the harm here is
Speaker 1: one that more of sort of defamation rather than a
Speaker 1: labor violation. It's not entirely clear whether the suit will
Speaker 1: be able to go forward, because federal preemption doctrine does
Speaker 1: require that conduct that is protected by the Act or
Speaker 1: prohibited by the National Labor Relations Fact legal issues around
Speaker 1: that must be resolved in the first instance by the board.
Speaker 1: The union has prevailed at around two hundred fifty of
Speaker 1: the company's nine thousand stores, and the unions filed numerous
Speaker 1: legal complaints with the National Labor Relations Board. Do those
Speaker 1: complaints ever bring any kind of resolution. I think what
Speaker 1: we're seeing with Starbucks is that there's overwhelming interest among
Speaker 1: workers and organized in union. Hundreds of Starbucks stores and
Speaker 1: I think three dozen states have had union elections, and
Speaker 1: this is really pretty stunning given that a year ago
Speaker 1: no Starbucks had the union, and the vast majority of
Speaker 1: these have voted to unionize. Nonetheless, what these workers are
Speaker 1: confronting at the legal regime that really doesn't do a
Speaker 1: good job at protecting their rights. And so what we
Speaker 1: see is that the employer has engaged in a pattern
Speaker 1: of antigunion activity, and the penalties under the National Labor
Speaker 1: Relations fact are really pretty minimal, and so I think
Speaker 1: the workers are looking to other tools to try to
Speaker 1: make sure that their rights aren't violated. That's Kate Andreas,
Speaker 1: the professor at Columbia Law Schools seting with Bloomberg student Grosso.
Speaker 1: Our top stories are straight ahead, and this is Bloomberg