1 00:00:03,400 --> 00:00:06,840 Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 2 00:00:06,880 --> 00:00:10,600 Speaker 1: day Break for Tuesday, November one, two. Coming up this hour, 3 00:00:10,760 --> 00:00:13,560 Speaker 1: stock teachers rise as we begin a new trading month. 4 00:00:13,720 --> 00:00:17,480 Speaker 1: Can President Biden deliver on promises to impose higher taxes 5 00:00:17,520 --> 00:00:19,919 Speaker 1: on big oil credits? We says the bank is not 6 00:00:20,280 --> 00:00:23,240 Speaker 1: for sale. We'll talk with the Swisslanders chairman, and the 7 00:00:23,239 --> 00:00:27,000 Speaker 1: Fed begins its two day policy meeting. A salary transparency 8 00:00:27,080 --> 00:00:29,560 Speaker 1: law takes effect today in New York City. Plus go 9 00:00:29,680 --> 00:00:33,800 Speaker 1: at the Supreme Court in affirmative action at universities and colleges. 10 00:00:34,080 --> 00:00:37,520 Speaker 1: I'm Michael barr More Ahead, John Stan Shower Sports much 11 00:00:37,520 --> 00:00:40,199 Speaker 1: did it win for the Nets? The Bround's upset the Bengals? 12 00:00:40,280 --> 00:00:45,680 Speaker 1: The World Series got reined out. That's All's trended Ahead 13 00:00:45,760 --> 00:00:49,320 Speaker 1: on Bloomberg Daybreak on Bloomberg Eliving, Free on New York, 14 00:00:49,479 --> 00:00:54,160 Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 15 00:00:54,480 --> 00:00:59,200 Speaker 1: Bloomberg nine sixties, San Francisco, Sirius Exam one nineteen and 16 00:00:59,280 --> 00:01:02,040 Speaker 1: around the world. Old on Bloomberg Radio dot Com and 17 00:01:02,160 --> 00:01:09,240 Speaker 1: via the Bloomberg Business App. Good Tuesday morning, I'm Amy 18 00:01:09,319 --> 00:01:12,440 Speaker 1: Morris I'm Nathan Hagar. Futures are moving higher this morning. 19 00:01:12,440 --> 00:01:14,479 Speaker 1: We're coming up to six o one on Wall Street, 20 00:01:14,480 --> 00:01:16,480 Speaker 1: and we checked the markets every fifteen minutes during the 21 00:01:16,520 --> 00:01:19,720 Speaker 1: trading day. On Bloomberg, SMP futures are up thirty three points, 22 00:01:19,720 --> 00:01:22,400 Speaker 1: STOUT futures up a hundred ninety seven, Nastack futures are 23 00:01:22,440 --> 00:01:25,440 Speaker 1: higher by one twenty three points. The tenure treasury is 24 00:01:25,480 --> 00:01:29,280 Speaker 1: up thirty seconds. The yield three point nine five nim 25 00:01:29,400 --> 00:01:31,959 Speaker 1: X screwed is up one point four percent at eighty 26 00:01:32,000 --> 00:01:36,119 Speaker 1: seven dollars sixty three cents a barrel. Amy Nathan Stocks 27 00:01:36,120 --> 00:01:39,080 Speaker 1: Center the first day of November moving higher. If history 28 00:01:39,160 --> 00:01:42,960 Speaker 1: is any indication, equities made build on October's games, which 29 00:01:43,000 --> 00:01:47,240 Speaker 1: saw the SMP five hundred rise eight percent. Bespoke investment groups, 30 00:01:47,240 --> 00:01:49,760 Speaker 1: as the SMP five hundred has registered in the average 31 00:01:49,800 --> 00:01:53,760 Speaker 1: game of eight tenths of a percent in November. Amanda Gottias, 32 00:01:53,800 --> 00:01:57,600 Speaker 1: chief investment officer at p nc ST Management, we're still 33 00:01:57,640 --> 00:02:01,040 Speaker 1: playing a little bit of defense. We're still leaning US 34 00:02:01,120 --> 00:02:06,040 Speaker 1: over international, larger over smaller capitalization. We kind of neutralize 35 00:02:06,080 --> 00:02:10,000 Speaker 1: our growth and value bets here um. But with valuations 36 00:02:10,040 --> 00:02:12,960 Speaker 1: following six plus, multiple points since the beginning of the year. 37 00:02:13,040 --> 00:02:14,960 Speaker 1: Just on the S and P five you have to 38 00:02:15,000 --> 00:02:19,679 Speaker 1: start getting interested um in opportunities at these leveled P 39 00:02:19,880 --> 00:02:23,560 Speaker 1: n c ST managements. Amanda Gotti says markets will rally 40 00:02:23,720 --> 00:02:26,400 Speaker 1: if the Fed gives a clear message on when rate 41 00:02:26,480 --> 00:02:28,480 Speaker 1: hikes will end. Well, I mean it has been a 42 00:02:28,520 --> 00:02:31,880 Speaker 1: big trading day in Asia. Chinese stocks surged overnight as 43 00:02:31,919 --> 00:02:36,200 Speaker 1: speculation grows of the government's preparing to exit stringent COVID restrictions. 44 00:02:36,400 --> 00:02:39,240 Speaker 1: The Hang Sang in Hong Kong rose five percent. Stocks 45 00:02:39,240 --> 00:02:42,799 Speaker 1: in China gained three point six percent, and Nathan we 46 00:02:42,840 --> 00:02:46,520 Speaker 1: continue to see historic profit from oil companies VP this morning, 47 00:02:46,520 --> 00:02:50,240 Speaker 1: reporting its second highest quarterly profit on record and announcing 48 00:02:50,240 --> 00:02:53,480 Speaker 1: two and a half billion dollars of share buybacks. Bloomberg 49 00:02:53,480 --> 00:02:56,520 Speaker 1: Stephen Stabinski says it's a batter year for big oil. 50 00:02:56,919 --> 00:02:59,960 Speaker 1: It's really hard to see anyone who is really losing 51 00:03:00,080 --> 00:03:02,639 Speaker 1: out on the surging prices. And you've seen it across 52 00:03:02,680 --> 00:03:05,080 Speaker 1: the board over the last week. You've seen you know, 53 00:03:05,240 --> 00:03:09,560 Speaker 1: Shell total at so On bp IS is joining this 54 00:03:09,760 --> 00:03:12,800 Speaker 1: larger group not just in Europe, in the United States, 55 00:03:12,840 --> 00:03:15,200 Speaker 1: but you're also seeing this in you know, Saudi Aramco 56 00:03:15,639 --> 00:03:19,160 Speaker 1: posted their second best quarterly profit ever. When it comes 57 00:03:19,160 --> 00:03:23,080 Speaker 1: to Saudi Aramco, Bloomberg's Steven Stepanski's reports that the company 58 00:03:23,200 --> 00:03:26,239 Speaker 1: posted its second highest earnings on record this morning. The 59 00:03:26,360 --> 00:03:28,840 Speaker 1: results from Big Oil this quarter are do largely to 60 00:03:29,040 --> 00:03:32,440 Speaker 1: surging prices at the pumps. Stephen mentioned amy We've seen 61 00:03:32,480 --> 00:03:34,960 Speaker 1: record profits from Mixed On Mobile as well as Chevron. 62 00:03:35,280 --> 00:03:37,800 Speaker 1: Both companies have masked more than thirty billion dollars in 63 00:03:37,840 --> 00:03:40,840 Speaker 1: combined net income last quarter, and that has President Biden 64 00:03:40,880 --> 00:03:44,560 Speaker 1: calling on Congress to impose higher taxes on oil companies. 65 00:03:44,600 --> 00:03:48,800 Speaker 1: If they're not reinvesting in production, they don't, they're gonna 66 00:03:48,800 --> 00:03:51,360 Speaker 1: pay a higher tax on their excess profits and face 67 00:03:51,440 --> 00:03:55,440 Speaker 1: other restrictions. My team will work with Congress to look 68 00:03:55,440 --> 00:03:57,840 Speaker 1: at these up. These options and are available to us 69 00:03:57,840 --> 00:04:00,880 Speaker 1: and others. It's time for these companies to stop for 70 00:04:01,120 --> 00:04:04,320 Speaker 1: profit cheering. The President Biden's promise to impose higher taxes 71 00:04:04,360 --> 00:04:07,280 Speaker 1: will be hard to deliver. Democrats have unsuccessfully sought a 72 00:04:07,360 --> 00:04:10,440 Speaker 1: so called windfall profit tanction more than a decade. Such 73 00:04:10,440 --> 00:04:12,560 Speaker 1: a proposal would have a hard time passing the Senate 74 00:04:12,600 --> 00:04:15,400 Speaker 1: and its current makeup, and Nathan Central Banks also in 75 00:04:15,480 --> 00:04:18,240 Speaker 1: focus this morning, the FED begins its two day policy meeting, 76 00:04:18,279 --> 00:04:21,760 Speaker 1: where it's expected to hike rates another seventy five basis points. 77 00:04:22,120 --> 00:04:25,680 Speaker 1: At the same time, Australia's Central Bank has raised interest 78 00:04:25,760 --> 00:04:28,640 Speaker 1: rates by a quarter percentage point. It looks like the 79 00:04:28,760 --> 00:04:31,760 Speaker 1: r b A is pivoting away from larger hikes. According 80 00:04:31,800 --> 00:04:34,520 Speaker 1: to Bloomberg's at Garfield Reynolds, it's definitely a pivot for 81 00:04:34,560 --> 00:04:37,920 Speaker 1: the b A. The question is whether other central banks 82 00:04:37,920 --> 00:04:40,839 Speaker 1: are going to be as concerned about the growth side 83 00:04:40,839 --> 00:04:44,039 Speaker 1: of their mandate as the A. B A is signaling 84 00:04:44,120 --> 00:04:46,880 Speaker 1: that it is. It's still concerned about inflation. It says 85 00:04:46,960 --> 00:04:50,719 Speaker 1: more hikes are to come, but reading between the lines, 86 00:04:50,760 --> 00:04:54,080 Speaker 1: it's concerned about growth mean that it's not wanting to 87 00:04:54,080 --> 00:04:57,480 Speaker 1: go more than twenty five basis points of time. Bloomberg's 88 00:04:57,520 --> 00:05:01,200 Speaker 1: chief rates correspondent Garfield Reynolds says cash rate in Australia 89 00:05:01,240 --> 00:05:04,360 Speaker 1: now stands at two point eight five. That's the highest 90 00:05:04,440 --> 00:05:07,560 Speaker 1: level since In corporate news this morning, Amy, we are 91 00:05:07,600 --> 00:05:10,400 Speaker 1: focused on credit Swiss again. The Swiss Bank is not 92 00:05:10,680 --> 00:05:13,400 Speaker 1: for sale. That's what the firm's chairman Axel Lehman saying, 93 00:05:13,400 --> 00:05:16,640 Speaker 1: after shares have fallen more than fifty percent this year, 94 00:05:16,920 --> 00:05:19,839 Speaker 1: Layman spoke to us in Hong Kong. We're going to 95 00:05:20,080 --> 00:05:23,960 Speaker 1: you know, to slife again, so we don't have any 96 00:05:24,040 --> 00:05:27,080 Speaker 1: take over this conscience and at that point we truly 97 00:05:27,080 --> 00:05:31,239 Speaker 1: believe we want to stay independent. Credit Swiss chairman Axel 98 00:05:31,320 --> 00:05:33,760 Speaker 1: Layman made the comments in an interview with Bloomberg News. 99 00:05:33,800 --> 00:05:36,039 Speaker 1: You can catch the full conversation on Bloomberg dot com 100 00:05:36,080 --> 00:05:38,760 Speaker 1: and on the Bloomberg terminal and back here in the US, 101 00:05:38,839 --> 00:05:42,520 Speaker 1: the airline and travel recovery continues as the busy holiday 102 00:05:42,560 --> 00:05:46,599 Speaker 1: season approaches. Delta Airlines pilots have voted to authorize a strike. 103 00:05:46,960 --> 00:05:49,760 Speaker 1: We get that story from Bloomberg's Charlie Pellett. It gives 104 00:05:49,880 --> 00:05:53,240 Speaker 1: union leaders the authority to call for a work stoppage 105 00:05:53,560 --> 00:05:57,120 Speaker 1: once they have gone through steps set by federal labor law. 106 00:05:57,640 --> 00:06:00,720 Speaker 1: The Delta unit of the Airline Pilots as Seation says 107 00:06:00,720 --> 00:06:05,120 Speaker 1: about ninety nine percent of pilots who voted approved the proposal. 108 00:06:05,560 --> 00:06:09,880 Speaker 1: The participation rate among Delta's roughly fifteen thousand pilots was 109 00:06:10,279 --> 00:06:14,440 Speaker 1: ninety six percent. While aviators must follow steps set by 110 00:06:14,480 --> 00:06:18,200 Speaker 1: the Railway Labor Act and can't randomly walk off the job. 111 00:06:18,520 --> 00:06:21,760 Speaker 1: The strength of the vote represents Pilot's view about the 112 00:06:21,839 --> 00:06:26,320 Speaker 1: lack of progress in negotiations in New York. Charlie Pilot's 113 00:06:26,320 --> 00:06:29,480 Speaker 1: Bloomberg Daybreak. Thanks Charlie. In another note on the airline industry, 114 00:06:29,480 --> 00:06:32,280 Speaker 1: for the first time since COVID cut air travel, US 115 00:06:32,360 --> 00:06:36,520 Speaker 1: passenger traffic has been running above levels. Just over fifteen 116 00:06:36,560 --> 00:06:39,159 Speaker 1: million people went through TSA security portals in the past 117 00:06:39,200 --> 00:06:41,839 Speaker 1: seven days. That's about thirty nine thousand more than in 118 00:06:43,000 --> 00:06:45,480 Speaker 1: and On the political front, the midterm elections are set 119 00:06:45,480 --> 00:06:48,080 Speaker 1: for a week from today. That means a policy change 120 00:06:48,080 --> 00:06:51,480 Speaker 1: from Twitter. The social media company has frozen some employee 121 00:06:51,520 --> 00:06:55,320 Speaker 1: access to internal tools used for content moderation and other 122 00:06:55,400 --> 00:06:59,200 Speaker 1: policy enforcement, and that's curbing the staff's ability to clamp 123 00:06:59,240 --> 00:07:02,800 Speaker 1: down on missing formation ahead of the election. Bloomberg News 124 00:07:02,839 --> 00:07:05,440 Speaker 1: has learned most people who work in Twitter's Trust and 125 00:07:05,520 --> 00:07:10,040 Speaker 1: Safety organization are currently unable to alter or penalize most 126 00:07:10,040 --> 00:07:14,800 Speaker 1: accounts that break rules around misleading information, offensive posts, and 127 00:07:14,920 --> 00:07:24,000 Speaker 1: hate speech. Futures are higher. This is Bloomberg. It's six 128 00:07:24,080 --> 00:07:26,320 Speaker 1: or seven on Wall Street. Let's bring in Michael Bard 129 00:07:26,320 --> 00:07:27,960 Speaker 1: to find out what else is going on in New 130 00:07:28,040 --> 00:07:31,160 Speaker 1: York and around the world. Good Morning, Michael, Good Morning Amy, 131 00:07:31,200 --> 00:07:34,280 Speaker 1: and a salary transparency law takes effect today in New 132 00:07:34,360 --> 00:07:37,800 Speaker 1: York City. It requires most companies to include a minimum 133 00:07:37,880 --> 00:07:42,040 Speaker 1: and maximum salary ranges when they post job openings. The 134 00:07:42,120 --> 00:07:45,280 Speaker 1: laws supporters say it's intended to close the pay gap 135 00:07:45,320 --> 00:07:48,200 Speaker 1: for women and people of color, but critics are nue 136 00:07:48,280 --> 00:07:51,520 Speaker 1: it will do just the opposite. The Supreme Court kicked 137 00:07:51,520 --> 00:07:56,200 Speaker 1: off hearing arguments over affirmative action at universities. Conservative groups 138 00:07:56,240 --> 00:07:59,720 Speaker 1: have sued both Harvard University and the University of North 139 00:07:59,720 --> 00:08:03,400 Speaker 1: Carolin line up, claiming that their admissions processes aren't fair 140 00:08:03,480 --> 00:08:07,520 Speaker 1: to white or Asian applicants. The courts three liberal justices 141 00:08:07,600 --> 00:08:10,640 Speaker 1: cast a doubt on whether race is the sole indicator 142 00:08:10,680 --> 00:08:15,600 Speaker 1: in admissions processes. Attorney Patrick Strawbridge represents students for Fair 143 00:08:15,640 --> 00:08:18,560 Speaker 1: Admissions in the U n C case and says that 144 00:08:18,720 --> 00:08:21,560 Speaker 1: race should only be used in a broader context of 145 00:08:21,600 --> 00:08:26,240 Speaker 1: an application. Racial classifications are wrong. That principle was enshrined 146 00:08:26,280 --> 00:08:29,080 Speaker 1: in our law at great cost. Following the Civil War, 147 00:08:29,280 --> 00:08:32,440 Speaker 1: Justice Elena Kagan encountered, the race is part of the culture, 148 00:08:32,440 --> 00:08:34,440 Speaker 1: and the culture is part of the race, isn't it. 149 00:08:34,520 --> 00:08:38,640 Speaker 1: I mean that's slicing the Ballooney awfully them. Meanwhile, conservative 150 00:08:38,720 --> 00:08:41,720 Speaker 1: justices have been casting doubt on whether the affirmative action 151 00:08:41,800 --> 00:08:46,160 Speaker 1: programs are needed. A correction officer inside Rikers Island was 152 00:08:46,200 --> 00:08:49,160 Speaker 1: injured after being stabbed over a dozen times. The New 153 00:08:49,240 --> 00:08:52,320 Speaker 1: York City Department of Correction says it happened yesterday afternoon. 154 00:08:52,600 --> 00:08:54,800 Speaker 1: The officer is said to be in stable condition at 155 00:08:54,800 --> 00:08:58,760 Speaker 1: Elmhurst Hospital. Court documents say the man accused of entering 156 00:08:58,760 --> 00:09:02,079 Speaker 1: the San Francisco home of how speaker Nancy Pelosi wanted 157 00:09:02,120 --> 00:09:05,840 Speaker 1: to break her kneecaps. Speaker was not home. Police say 158 00:09:05,920 --> 00:09:08,840 Speaker 1: forty two year Rold David to Pap attacked her husband, 159 00:09:08,840 --> 00:09:13,720 Speaker 1: Paul Pelosi. Meanwhile, Democratic Congresswoman Debbie Dingle of Michigan discussed 160 00:09:13,720 --> 00:09:17,680 Speaker 1: the attack on Paul Pelosi and heightened tensions over political 161 00:09:17,760 --> 00:09:22,080 Speaker 1: rhetoric and violence. She referred to recent Elon Musk tweets 162 00:09:22,080 --> 00:09:26,320 Speaker 1: on Pelosi. The conspiracy theories are also adding to the 163 00:09:26,360 --> 00:09:30,920 Speaker 1: some putting kerosene on and people will read it, so, yeah, 164 00:09:30,960 --> 00:09:33,360 Speaker 1: you know what, I will go after somebody. It's a 165 00:09:33,400 --> 00:09:37,520 Speaker 1: new owner of Twitter's got some responsibilities too, and was 166 00:09:37,600 --> 00:09:42,160 Speaker 1: horrified that he would participate in some of this conspiracy 167 00:09:42,679 --> 00:09:47,960 Speaker 1: here he said it has now no truth Jeit. Congresswoman 168 00:09:48,040 --> 00:09:51,120 Speaker 1: Dingle spoke on sound On, which airs at five pm 169 00:09:51,120 --> 00:09:54,200 Speaker 1: on Bloomberg Global News twenty four hours a day on 170 00:09:54,280 --> 00:09:58,120 Speaker 1: air and on Bloomberg Quicktake, powered by more than hundred 171 00:09:58,160 --> 00:10:01,440 Speaker 1: journalist and analysts more than countries. I'm Michael Barr, and 172 00:10:01,559 --> 00:10:07,520 Speaker 1: this is Bloomberg. Amy, all right, thank you, Michael. It's 173 00:10:07,520 --> 00:10:09,680 Speaker 1: seems so nine on Wall Street. Time. Now for the 174 00:10:09,720 --> 00:10:12,440 Speaker 1: sports report, brought to you by Tri State Audi. Here's 175 00:10:12,520 --> 00:10:15,120 Speaker 1: John stash Our. All right, Amy, Brooklyn Nets have become 176 00:10:15,240 --> 00:10:17,720 Speaker 1: somewhat of a soap opera. Very often has to do 177 00:10:17,800 --> 00:10:20,520 Speaker 1: with Kyrie. I main scenes. It's always something with Kyrie. 178 00:10:20,600 --> 00:10:23,480 Speaker 1: The latest his posting on social media a link to 179 00:10:23,520 --> 00:10:27,480 Speaker 1: an anti Semitic video. Several fans last night sat courtside 180 00:10:27,480 --> 00:10:31,439 Speaker 1: with t shirts that read fight anti Semitism. There's also 181 00:10:31,520 --> 00:10:34,000 Speaker 1: the team's early season struggles, a one in five record, 182 00:10:34,040 --> 00:10:36,400 Speaker 1: worst defensive the NBA so a much needed win at 183 00:10:36,440 --> 00:10:40,079 Speaker 1: Barkley's one sixteen one O nine over Indiana. Chive Sports 184 00:10:40,600 --> 00:10:43,480 Speaker 1: points Kevin Durant at thirty six. The Mother Night gave 185 00:10:43,480 --> 00:10:46,760 Speaker 1: an upset win for Cleveland thirty two to thirteen over Cincinnati. 186 00:10:46,800 --> 00:10:49,600 Speaker 1: The Browns were up twenty five nothing in the fourth quarter. 187 00:10:49,720 --> 00:10:53,000 Speaker 1: NFL trade deadline four o'clock today, Giants could be looking 188 00:10:53,000 --> 00:10:56,120 Speaker 1: for a receiver Jets. Why a Elijah Moore has asked 189 00:10:56,120 --> 00:10:59,040 Speaker 1: to be traded. No quarterback change to the Jets. Despite 190 00:10:59,120 --> 00:11:02,160 Speaker 1: Zach Wilson's th reinterceptions and the loss of the Patriots, 191 00:11:02,160 --> 00:11:05,480 Speaker 1: the Jet coach got full confidence inside. We all do 192 00:11:05,920 --> 00:11:09,679 Speaker 1: um um. You know, it's not like he hasn't had 193 00:11:09,720 --> 00:11:12,560 Speaker 1: bad games before and he stepped up and has followed 194 00:11:12,559 --> 00:11:14,599 Speaker 1: it with good days. So you know the way he 195 00:11:14,720 --> 00:11:17,600 Speaker 1: preps and the way he practices and the questions he asks, 196 00:11:18,360 --> 00:11:20,400 Speaker 1: We've got faith that will continue to continue to find 197 00:11:20,400 --> 00:11:22,720 Speaker 1: ways to get better. Jets. It's up one Sunday against 198 00:11:22,720 --> 00:11:26,480 Speaker 1: six and one Buffalo College Football. Auburn fired Ryan Harrison, 199 00:11:26,559 --> 00:11:28,920 Speaker 1: so he didn't finish the second season of a six 200 00:11:29,000 --> 00:11:31,840 Speaker 1: year contract, though all fifteen million dollars they're still paying. 201 00:11:31,880 --> 00:11:35,000 Speaker 1: The previous Coach World Series resumes tonight at Philadelphia. After 202 00:11:35,080 --> 00:11:37,440 Speaker 1: last night's Right nowt The Phillies have changed their Game 203 00:11:37,520 --> 00:11:40,560 Speaker 1: three starter out is the x Mett Noah Synder guard 204 00:11:40,679 --> 00:11:43,200 Speaker 1: in his Rangers Swarez the astros are sticky with a 205 00:11:43,200 --> 00:11:46,120 Speaker 1: glance for colors. World Series is tied of one John 206 00:11:46,240 --> 00:11:49,240 Speaker 1: Dash that lub sports and all right, thank you john 207 00:11:49,320 --> 00:11:51,360 Speaker 1: S andd features a thirty four points high or Dell 208 00:11:51,480 --> 00:11:55,000 Speaker 1: features up by one points, nastac features up by one 209 00:11:55,080 --> 00:12:00,000 Speaker 1: hundred twenty seven points. The ten year treasury up thirty seconds, 210 00:12:00,040 --> 00:12:03,880 Speaker 1: the yield at three point nine four percent. This is Bloomberg. 211 00:12:06,920 --> 00:12:09,240 Speaker 1: The Bloomberg Sports Report was brought to you by Audie. 212 00:12:09,280 --> 00:12:11,480 Speaker 1: Don't let someone else drive off in the autie model 213 00:12:11,600 --> 00:12:14,360 Speaker 1: you've always wanted. Visit your local try state autie dealer 214 00:12:14,360 --> 00:12:16,480 Speaker 1: to get behind the wheel of yours today, or visit 215 00:12:16,520 --> 00:12:23,600 Speaker 1: autie Offers dot com for more information, markets, headlines and 216 00:12:23,720 --> 00:12:27,000 Speaker 1: breaking news twenty four hours a day at Bloomberg dot com, 217 00:12:27,080 --> 00:12:30,360 Speaker 1: The Bloomberg Business at and at Bloomberg. Quick Tape Bruce 218 00:12:30,600 --> 00:12:39,200 Speaker 1: is a Bloomberg Business Flash. I'm Nathan Hagar. The dollar 219 00:12:39,280 --> 00:12:41,880 Speaker 1: and treasury yields are falling as investors await the Federal 220 00:12:41,920 --> 00:12:45,199 Speaker 1: Reserves policy meeting. It kicks off today. The decision is tomorrow. 221 00:12:45,640 --> 00:12:48,560 Speaker 1: Stocks and futures are in rally mode this morning. We 222 00:12:48,640 --> 00:12:50,800 Speaker 1: checked the markets for you every fifteen minutes during the 223 00:12:50,800 --> 00:12:53,600 Speaker 1: trading day on Bloomberg S and P futures are up 224 00:12:53,600 --> 00:12:57,200 Speaker 1: thirty four points. Staff futures up two one. Nastack futures 225 00:12:57,200 --> 00:12:59,600 Speaker 1: are higher by a hundred twenty seven points. The tenure 226 00:12:59,640 --> 00:13:02,560 Speaker 1: treasure he is up twenty five thirty seconds yield three 227 00:13:02,559 --> 00:13:04,960 Speaker 1: point nine four percent yield on the two year at 228 00:13:04,960 --> 00:13:08,520 Speaker 1: four point one one p. Nime ex screws up by 229 00:13:08,800 --> 00:13:10,760 Speaker 1: one point six percent, or a dollar forty two at 230 00:13:10,760 --> 00:13:13,600 Speaker 1: eighty seven dollars. Ninety seven cents of Arrol comic gold 231 00:13:13,679 --> 00:13:15,520 Speaker 1: is up eight tenths per cent, or twelve dollar sixty 232 00:13:15,559 --> 00:13:19,880 Speaker 1: cents sixteen fifty three thirty announced. The euro point five 233 00:13:19,920 --> 00:13:22,199 Speaker 1: against the dollar the end one forty seven point to 234 00:13:22,400 --> 00:13:25,880 Speaker 1: five Big coins up one percent twenty thousand, six hundred dollars. 235 00:13:26,000 --> 00:13:28,840 Speaker 1: That's a Bloomberg business flash. Now here's Michael Barr with 236 00:13:28,880 --> 00:13:30,960 Speaker 1: more on what's going on around the world. Michael, thank 237 00:13:31,000 --> 00:13:33,680 Speaker 1: you very much. Nathan. The Supreme Court at arguments in 238 00:13:33,760 --> 00:13:37,760 Speaker 1: cases challenging the consideration of a student's race and college admissions. 239 00:13:38,160 --> 00:13:41,040 Speaker 1: The cases involving Harvor to end the University of North 240 00:13:41,080 --> 00:13:44,760 Speaker 1: Carolina could end affirmative action at public and private schools 241 00:13:44,760 --> 00:13:50,640 Speaker 1: across the country protests by Jenner Bilsonaro supporters intensified as 242 00:13:50,679 --> 00:13:53,960 Speaker 1: the Brazilian president remains silent over his loss to Lula 243 00:13:54,080 --> 00:13:58,880 Speaker 1: da Silva on Sunday's elections protests. Here's block highways. They'll 244 00:13:58,880 --> 00:14:00,920 Speaker 1: try to make up Game three of the World Series 245 00:14:00,960 --> 00:14:04,800 Speaker 1: in Philadelphia. Last night, Phillies and Astro's game was postponed 246 00:14:04,800 --> 00:14:07,560 Speaker 1: because of rain. In the NBA, the Nets one, the 247 00:14:07,559 --> 00:14:10,439 Speaker 1: Wizards lost. In the NHL, the Capitals lost in a 248 00:14:10,480 --> 00:14:13,320 Speaker 1: shootout with the Hurricanes three to The Browns beat the 249 00:14:13,360 --> 00:14:17,760 Speaker 1: Ravens thirty two thirteen and Monday Night Football. Global News 250 00:14:17,800 --> 00:14:20,680 Speaker 1: twenty four hours a day on air and on Bloomberg 251 00:14:20,720 --> 00:14:23,960 Speaker 1: Quick Tank, powered by more than twenty seven under journalist 252 00:14:24,000 --> 00:14:26,720 Speaker 1: and analysts in more than a hundred twenty countries. I'm 253 00:14:26,760 --> 00:14:30,520 Speaker 1: Michael Barron. This is Bloomberg Amy all right, Thank you, Michael. 254 00:14:30,600 --> 00:14:33,560 Speaker 1: It is six nineteen on Wall Street Live from the 255 00:14:33,560 --> 00:14:37,280 Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. The White 256 00:14:37,280 --> 00:14:39,840 Speaker 1: House has been calling on oil companies to invest more 257 00:14:39,920 --> 00:14:43,240 Speaker 1: in production for months, but Bloomberg data show the biggest 258 00:14:43,240 --> 00:14:46,840 Speaker 1: companies like Exxon and Shell and Chevron are all handling 259 00:14:47,000 --> 00:14:48,880 Speaker 1: a lot of that money and they're handing it over 260 00:14:48,920 --> 00:14:52,440 Speaker 1: to their shareholders and then just reinvesting only a fraction 261 00:14:52,480 --> 00:14:55,600 Speaker 1: of their windfall. So now comes a warning from President 262 00:14:55,600 --> 00:14:58,880 Speaker 1: Biden for oil companies, as the administration is promising higher 263 00:14:58,880 --> 00:15:02,440 Speaker 1: taxes on oil company these that record those windfall profits 264 00:15:02,480 --> 00:15:05,760 Speaker 1: without reinvesting in production. Joining us now to talk about it, 265 00:15:05,840 --> 00:15:08,800 Speaker 1: President of the Short Group, Stephen Short, Stephen, thank you 266 00:15:08,840 --> 00:15:10,720 Speaker 1: so much for taking the time with us this morning. 267 00:15:11,280 --> 00:15:13,720 Speaker 1: The President is going to have to get congressional support 268 00:15:13,760 --> 00:15:15,920 Speaker 1: to do this, But the question is if you can 269 00:15:16,080 --> 00:15:19,240 Speaker 1: get that support, Willie Well, I think a lot of 270 00:15:19,240 --> 00:15:22,000 Speaker 1: it amy depends on I guess, in about a week 271 00:15:22,080 --> 00:15:25,360 Speaker 1: or so after the mid terms, who has control of Congress. 272 00:15:26,080 --> 00:15:29,760 Speaker 1: I think if we still have the current uh Democrat 273 00:15:29,840 --> 00:15:36,000 Speaker 1: control with the Vice president as the tiebreaker, Uh, then yeah, 274 00:15:36,120 --> 00:15:38,320 Speaker 1: well we'll probably get this flow to by Congress, and 275 00:15:38,360 --> 00:15:42,240 Speaker 1: Congress would probably try to enact uh some sort of 276 00:15:42,240 --> 00:15:46,280 Speaker 1: windfall profit tax. Of course, on the other hand, UH, 277 00:15:46,320 --> 00:15:48,840 Speaker 1: if we see any sort of red wave or or 278 00:15:48,960 --> 00:15:54,080 Speaker 1: even a red tide where Republicans gained control on one 279 00:15:54,080 --> 00:15:59,000 Speaker 1: of both houses, uh, then the likelihood of attacks uh 280 00:15:59,360 --> 00:16:02,720 Speaker 1: windfall prof attacks UH dimensions greatly I think will be 281 00:16:02,760 --> 00:16:05,280 Speaker 1: non existence. So now I think Amy. The question is, 282 00:16:05,960 --> 00:16:08,880 Speaker 1: with a week Togo and some of the prediction markets, 283 00:16:09,520 --> 00:16:12,760 Speaker 1: I markets you could bet on the outcome of next 284 00:16:12,800 --> 00:16:16,920 Speaker 1: week's elections, do you seem to indicate that the Republicans 285 00:16:16,960 --> 00:16:20,360 Speaker 1: will win at this point? Uh So, a lot of 286 00:16:20,360 --> 00:16:22,920 Speaker 1: the rhetoric that we heard yesterday is what we've heard 287 00:16:23,360 --> 00:16:26,960 Speaker 1: in the past. And perhaps it is just nothing but 288 00:16:27,680 --> 00:16:32,000 Speaker 1: the campaign trail, trying to rally the troops before the election, 289 00:16:32,520 --> 00:16:35,440 Speaker 1: but so close to the election, is it too little, 290 00:16:35,480 --> 00:16:39,040 Speaker 1: too late? Well, it's all about rhetoric. Right. Markets trade 291 00:16:39,040 --> 00:16:41,640 Speaker 1: on perception. They don't trade on reality. Often they trade 292 00:16:41,640 --> 00:16:45,320 Speaker 1: on perception. Uh these are futures markets we are talking about. 293 00:16:46,000 --> 00:16:50,160 Speaker 1: Uh So, what this will do is it casts the 294 00:16:50,200 --> 00:16:54,600 Speaker 1: oil companies, whether it is the Western oil companies or OPEC, 295 00:16:55,080 --> 00:16:58,640 Speaker 1: casts them as the villain. It takes the shine off 296 00:16:59,200 --> 00:17:02,760 Speaker 1: of whatever ability you might have had in the situation, 297 00:17:02,960 --> 00:17:05,760 Speaker 1: and it gives you talking points. The bottom line is 298 00:17:05,800 --> 00:17:08,200 Speaker 1: the windfall profit tax. We've tried it before. We tried 299 00:17:08,240 --> 00:17:10,400 Speaker 1: in the nineteen eighties and nineteen eight and nine nine. 300 00:17:10,880 --> 00:17:13,679 Speaker 1: It did not work then, and if it were to 301 00:17:13,720 --> 00:17:18,480 Speaker 1: be reenact, we reenacted. Uh then certainly, I am highly 302 00:17:18,480 --> 00:17:21,520 Speaker 1: skeptical that it will work this time. Yeah, I wanted 303 00:17:21,560 --> 00:17:24,439 Speaker 1: to get into that historical perspective. We have seen this 304 00:17:24,480 --> 00:17:27,160 Speaker 1: before then in the nineteen eighties, Why didn't it work? 305 00:17:27,200 --> 00:17:30,800 Speaker 1: Then we have a survey or not serve excuse me, 306 00:17:30,800 --> 00:17:36,800 Speaker 1: a study put up by the Congressional Research um UH group, 307 00:17:37,359 --> 00:17:40,199 Speaker 1: And essentially we've tried this in the nineteen eighties. And 308 00:17:40,240 --> 00:17:44,159 Speaker 1: what happened was we had a price cap um after 309 00:17:44,400 --> 00:17:48,000 Speaker 1: prices were decent um de regulated in the seventies, and 310 00:17:48,080 --> 00:17:51,280 Speaker 1: that price cap what was taken off. And then Congress 311 00:17:51,359 --> 00:17:54,240 Speaker 1: enacted this under the belief that oil companies were earning 312 00:17:54,240 --> 00:17:59,320 Speaker 1: windfall profits. And this study that was put forth by 313 00:18:00,040 --> 00:18:04,760 Speaker 1: um excuse me, by this independent congret me. As I said, 314 00:18:04,800 --> 00:18:10,080 Speaker 1: the the crs UH determined that, UH, the tax ended 315 00:18:10,160 --> 00:18:13,680 Speaker 1: up reducing the amount of oil produced because you're raising 316 00:18:13,680 --> 00:18:17,359 Speaker 1: the cost of capital UH and thereby cutting off the 317 00:18:17,400 --> 00:18:21,040 Speaker 1: supply of capital for the industry. So production was was 318 00:18:21,119 --> 00:18:26,000 Speaker 1: cut in. Our dependence on foreign oil actually grew UH 319 00:18:26,119 --> 00:18:29,639 Speaker 1: during the n UH. So effectively, what you had was 320 00:18:29,680 --> 00:18:32,960 Speaker 1: the government being encounters over those ten years, estimated that 321 00:18:33,040 --> 00:18:36,560 Speaker 1: the windfall tax revenues they would collect the I r 322 00:18:36,640 --> 00:18:40,800 Speaker 1: s two dree billion, whereas they only create and they 323 00:18:40,800 --> 00:18:45,320 Speaker 1: only collected eight billion at this point. Because once again, uh, 324 00:18:45,359 --> 00:18:48,960 Speaker 1: you're looking at a situation when you tax something, Ideally, 325 00:18:49,000 --> 00:18:52,640 Speaker 1: you're going to reduce the supply of whatever you're being uh, 326 00:18:52,760 --> 00:18:55,040 Speaker 1: whatever you're being taxed on, because you're raising the cost 327 00:18:55,080 --> 00:19:00,399 Speaker 1: of production. And just as this congressional research study put forward, 328 00:19:00,560 --> 00:19:04,120 Speaker 1: uh effectively, Uh, it happened before. We'll reduce the cost 329 00:19:04,160 --> 00:19:07,199 Speaker 1: of capital, you reduce production, you'll increase in ports, and 330 00:19:07,200 --> 00:19:10,320 Speaker 1: you'll do nothing to impact price. Stephen very quickly thirty 331 00:19:10,320 --> 00:19:12,399 Speaker 1: seconds here turning to the price of oil. Where do 332 00:19:12,440 --> 00:19:15,400 Speaker 1: you see it headed from here right now? It depends 333 00:19:15,480 --> 00:19:18,720 Speaker 1: on whether or not we are in recession. I know, 334 00:19:19,040 --> 00:19:21,240 Speaker 1: I think uh, I think a big bank came out 335 00:19:21,280 --> 00:19:24,119 Speaker 1: said a second quarter will be in recession. Certainly if 336 00:19:24,160 --> 00:19:28,000 Speaker 1: we see that are modeling hat takes oil down below 337 00:19:28,040 --> 00:19:31,359 Speaker 1: fifty dollars a barrel at this point, as uh, the 338 00:19:31,400 --> 00:19:34,840 Speaker 1: economy drives up as demand drives up. Are modeling coming 339 00:19:34,880 --> 00:19:38,800 Speaker 1: in so far from the new year is mid eighties two, 340 00:19:38,840 --> 00:19:40,960 Speaker 1: about a hundred and twenty that would be arranged, so 341 00:19:41,040 --> 00:19:43,760 Speaker 1: around a hundred dollars a barrel, assuming we do not 342 00:19:43,800 --> 00:19:47,840 Speaker 1: go into recession. You go into recession forty all right, 343 00:19:47,920 --> 00:19:50,640 Speaker 1: Steven Stork, thank you very much. Always great to get 344 00:19:50,640 --> 00:19:53,760 Speaker 1: to your insight. Stephen Shark is president of the Short Group. 345 00:19:53,920 --> 00:19:56,440 Speaker 1: S and P Futures now thirty six points higher, del 346 00:19:56,560 --> 00:19:59,280 Speaker 1: Futures up two hundred fifteen points, NASDAC features up a 347 00:19:59,320 --> 00:20:02,880 Speaker 1: hundred thirty nine points. Much more to come on Bloomberg Daybreak. 348 00:20:02,960 --> 00:20:08,120 Speaker 1: This is Bloomberg. Bloomberg Daybreak is brought to you by 349 00:20:08,160 --> 00:20:10,960 Speaker 1: the Jewish Communal Fund. For fifty years, j c f's 350 00:20:11,040 --> 00:20:14,680 Speaker 1: donor advised funds have been helping families create charitable legacies. 351 00:20:14,920 --> 00:20:16,800 Speaker 1: Start now and open a j c F fund before 352 00:20:16,920 --> 00:20:19,000 Speaker 1: year and visit j c F and why dot org. 353 00:20:22,080 --> 00:20:26,639 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 354 00:20:26,720 --> 00:20:29,840 Speaker 1: Bloomberg E Living Free on to Washington, d C, Bloomberg 355 00:20:29,920 --> 00:20:34,040 Speaker 1: nine to Boston, Bloomberg one O six one to San Francisco, 356 00:20:34,119 --> 00:20:37,320 Speaker 1: Bloomberg Ning sixty to the country, Sirius XM to the 357 00:20:37,400 --> 00:20:40,320 Speaker 1: one nine team, and around the globe, the Bloomberg Business 358 00:20:40,359 --> 00:20:45,320 Speaker 1: app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 359 00:20:50,480 --> 00:20:53,120 Speaker 1: It's six thirty on Wall Street. Good Tuesday morning. I'm 360 00:20:53,119 --> 00:20:55,720 Speaker 1: Ane Morris, I'm Nathan Hager. We're about three hours away 361 00:20:55,720 --> 00:20:57,520 Speaker 1: from the open of US trading. It's time for the 362 00:20:57,560 --> 00:20:59,280 Speaker 1: five Things you need to know to start your day. 363 00:20:59,320 --> 00:21:02,639 Speaker 1: Brought to you by Interactive Brokers IBKR. Event Trader offers 364 00:21:02,640 --> 00:21:05,280 Speaker 1: a new way to trade futures. Use event contracts to 365 00:21:05,280 --> 00:21:07,680 Speaker 1: trade your opinion on yes or no questions and key 366 00:21:07,760 --> 00:21:11,600 Speaker 1: CME futures markets. Learn more at event trader dot Interactive 367 00:21:11,600 --> 00:21:15,320 Speaker 1: Brokers dot com. First US futures are higher as investors 368 00:21:15,320 --> 00:21:18,240 Speaker 1: geara for this week's FED meeting and the October jobs report. 369 00:21:18,280 --> 00:21:21,200 Speaker 1: The Fed is front and center. That's according to Bloomberg 370 00:21:21,200 --> 00:21:25,160 Speaker 1: macro strategist Vince Signarella, the Fed made pivots sooner than expected. 371 00:21:25,480 --> 00:21:27,560 Speaker 1: I think that's what the markets are hoping for, some 372 00:21:27,640 --> 00:21:31,640 Speaker 1: indication that the Fed acknowledges that their work is starting 373 00:21:31,720 --> 00:21:34,240 Speaker 1: to find its way through the economy, specifically in housing, 374 00:21:34,240 --> 00:21:36,639 Speaker 1: as we saw last week pending home sales down over 375 00:21:37,400 --> 00:21:39,560 Speaker 1: on a month over month basis. That's what the market 376 00:21:39,600 --> 00:21:42,719 Speaker 1: is hoping for, and Bloomberg Cingerella says markets will respond 377 00:21:42,720 --> 00:21:46,040 Speaker 1: negatively if the FED does not forecast easy monetary policy 378 00:21:46,040 --> 00:21:48,600 Speaker 1: in the near future. Expectations are for the FED to 379 00:21:48,640 --> 00:21:52,040 Speaker 1: raise rates seventy five basis points tomorrow, followed by fifty 380 00:21:52,080 --> 00:21:55,800 Speaker 1: in December. Meantime, Australia's Central Bank haik to interest rates 381 00:21:55,840 --> 00:21:59,200 Speaker 1: today by just a quarter percentage point. That's sparked bets 382 00:21:59,280 --> 00:22:02,240 Speaker 1: that the RB is pivoting away from large heights. Let's 383 00:22:02,280 --> 00:22:04,200 Speaker 1: been a big day in Asia and each Chinese stocks 384 00:22:04,200 --> 00:22:07,280 Speaker 1: surged overnight of speculation grows the government's preparing to exit 385 00:22:07,359 --> 00:22:10,200 Speaker 1: COVID restrictions. The hang second Hong Kong Ros five percent 386 00:22:10,480 --> 00:22:13,320 Speaker 1: stocks in China gained three point six percent. And Nathan, 387 00:22:13,320 --> 00:22:16,240 Speaker 1: we're seeing historic profits from big oil, Saudi Aramco and 388 00:22:16,320 --> 00:22:20,040 Speaker 1: VP posting their second highest quarterly earnings this morning after 389 00:22:20,119 --> 00:22:23,560 Speaker 1: record profit from Exxon and Chevron. It has President Biden 390 00:22:23,600 --> 00:22:26,800 Speaker 1: calling on Congress to impose higher taxes on big oil. 391 00:22:27,040 --> 00:22:30,560 Speaker 1: Rather than increasing no investments in America or giving American 392 00:22:30,640 --> 00:22:33,439 Speaker 1: consumers of break their excess profits, You're going back to 393 00:22:33,480 --> 00:22:36,760 Speaker 1: their shareholders and buying back their stocks and the executive page, 394 00:22:36,960 --> 00:22:39,520 Speaker 1: I'm going to skyrocket, give me a break. Enough is 395 00:22:39,680 --> 00:22:43,280 Speaker 1: enough by President Briden's promise to impose higher taxes will 396 00:22:43,320 --> 00:22:46,880 Speaker 1: be hard to deliver Democrats have unsuccessfully sought a windfall 397 00:22:46,960 --> 00:22:49,640 Speaker 1: profit tax for more than a decade. The Incorporate News 398 00:22:49,680 --> 00:22:52,320 Speaker 1: this morning, we're talking Credit Swiss again. Amy chairman Axcel 399 00:22:52,359 --> 00:22:54,800 Speaker 1: Layman tells us the Swiss Bank is not for sale. 400 00:22:54,840 --> 00:22:57,120 Speaker 1: If we picked out where we need to go, and 401 00:22:57,160 --> 00:23:01,119 Speaker 1: we took some bold and really dare we important decisions 402 00:23:01,160 --> 00:23:03,639 Speaker 1: for the group, and it's now really about looking forward 403 00:23:03,720 --> 00:23:06,800 Speaker 1: and to execute that plan. Credit Swiss chairman axel Lehman 404 00:23:06,840 --> 00:23:09,119 Speaker 1: made the comments in an interview with Bloomberg. You can 405 00:23:09,200 --> 00:23:11,440 Speaker 1: catch the full conversation on Bloomberg dot com or on 406 00:23:11,480 --> 00:23:15,040 Speaker 1: the Bloomberg terminal. Red headlines crossing the Bloomberg terminal, Eli 407 00:23:15,119 --> 00:23:18,440 Speaker 1: Lily is cutting its adjusted forecast for the full year, 408 00:23:18,760 --> 00:23:22,280 Speaker 1: and Johnson and Johnson is acquiring a BioMed in a 409 00:23:22,359 --> 00:23:25,439 Speaker 1: deal valued at sixteen point six billion dollars. That's the 410 00:23:25,440 --> 00:23:27,600 Speaker 1: five things you need to notice start your day, brought 411 00:23:27,600 --> 00:23:31,800 Speaker 1: to you by Interactive Brokers, straight Ahead, your latest local headlines, 412 00:23:31,800 --> 00:23:38,600 Speaker 1: and a check of sports. This is Bloomberg, all right, 413 00:23:38,640 --> 00:23:41,120 Speaker 1: Thank you, Nathan sixty three on Wall Street. Now, let's 414 00:23:41,119 --> 00:23:43,119 Speaker 1: bring in Michael bar to tell us what else is 415 00:23:43,160 --> 00:23:45,760 Speaker 1: going on in New York and around the World. Good 416 00:23:45,760 --> 00:23:49,600 Speaker 1: morning Michael, Good morning Amy. A salary transparency law takes 417 00:23:49,640 --> 00:23:52,960 Speaker 1: effect today in New York City. It requires most companies 418 00:23:52,960 --> 00:23:56,240 Speaker 1: to include salary ranges when they post a job opening. 419 00:23:56,720 --> 00:23:59,680 Speaker 1: The law supporters say it's intended to close the pay 420 00:23:59,760 --> 00:24:02,720 Speaker 1: gas for women and people of color, but critics argue 421 00:24:02,800 --> 00:24:07,080 Speaker 1: it will do just the opposite. Maria Cola Cursio is 422 00:24:07,320 --> 00:24:11,080 Speaker 1: CEO of Cindio, a company that makes software to analyze 423 00:24:11,080 --> 00:24:14,280 Speaker 1: pay equity. As a company, if you have a philosophy 424 00:24:14,320 --> 00:24:17,879 Speaker 1: of start low, stay low, or paid top dollar to 425 00:24:17,960 --> 00:24:21,280 Speaker 1: the best negotiator, that's going to very quickly catch up 426 00:24:21,280 --> 00:24:24,720 Speaker 1: with you from a pay equity and meeting pay gap perspective. 427 00:24:25,160 --> 00:24:28,200 Speaker 1: A recent study found white women are paid seventy three 428 00:24:28,240 --> 00:24:31,080 Speaker 1: cents on the dollar compared to white men, for black 429 00:24:31,119 --> 00:24:34,240 Speaker 1: women at sixty four cents on the dollar. A deeply 430 00:24:34,280 --> 00:24:37,760 Speaker 1: divided Supreme Court assert arguments that could end affirmative action 431 00:24:37,840 --> 00:24:41,919 Speaker 1: policies at universities. Bloomberg said Baxter as the story the 432 00:24:42,000 --> 00:24:46,600 Speaker 1: conservative majority suggesting a readiness to abolish the practice. Chief 433 00:24:46,680 --> 00:24:48,840 Speaker 1: Justice John Roberts, I don't see how you can say 434 00:24:48,840 --> 00:24:51,960 Speaker 1: that the program will ever end. Your position is that 435 00:24:52,160 --> 00:24:56,520 Speaker 1: race matters because it's necessary for diversity, which is necessary 436 00:24:56,520 --> 00:24:59,199 Speaker 1: for the sort of education you want. It's not going 437 00:24:59,240 --> 00:25:03,400 Speaker 1: to stop mannering the affirmative action proponents at North Carolina 438 00:25:03,400 --> 00:25:07,520 Speaker 1: and Harvard, arguing that the policies ensued diversity. Justice Clarence 439 00:25:07,520 --> 00:25:10,520 Speaker 1: Thomas said he doesn't even know what diversity means in 440 00:25:10,560 --> 00:25:14,920 Speaker 1: this context. In San Francisco, i'med Baxter bloomber Daybreak, Federal 441 00:25:14,960 --> 00:25:18,000 Speaker 1: prosecutors say the man accused of attacking Paul Pelosi, the 442 00:25:18,080 --> 00:25:21,560 Speaker 1: husband of House Speaker Nancy Pelosi, told police he wanted 443 00:25:21,600 --> 00:25:26,000 Speaker 1: to hold the speaker hostage and break her kneecaps. David 444 00:25:26,119 --> 00:25:28,919 Speaker 1: du pomp has been charged with two federal crimes and 445 00:25:28,960 --> 00:25:32,119 Speaker 1: a state count of attempted murder. North Korea threatened to 446 00:25:32,200 --> 00:25:35,480 Speaker 1: unleash a powerful action if the US does not halt 447 00:25:35,560 --> 00:25:39,520 Speaker 1: joint military drills with partners, including South Korea. It might 448 00:25:39,600 --> 00:25:41,879 Speaker 1: be an effort by Kim Johannune to lay the ground 449 00:25:41,960 --> 00:25:45,760 Speaker 1: for his first nuclear tests in five years. Fans wearing 450 00:25:45,840 --> 00:25:50,040 Speaker 1: fight anti Semitism shirts occupied some courtside seats at the Brooklyn, 451 00:25:50,040 --> 00:25:53,439 Speaker 1: Indiana game last night, days after Nets guard Kyrie Irving 452 00:25:53,680 --> 00:25:56,600 Speaker 1: tweeted out a link to a documentary film that includes 453 00:25:56,680 --> 00:26:00,520 Speaker 1: anti Jewish tropes. Global news twenty four hours a day 454 00:26:00,640 --> 00:26:03,680 Speaker 1: on here and on Bloomberg Quick Tank, powered by more 455 00:26:03,760 --> 00:26:06,159 Speaker 1: than twenty seven under journalist and analysts more than a 456 00:26:06,240 --> 00:26:09,639 Speaker 1: hundred twenty countries. I'm Michael Barr, and this is Bloomberg. 457 00:26:09,760 --> 00:26:15,399 Speaker 1: Am all right, Thank you, Michael. About thirty six on 458 00:26:15,440 --> 00:26:18,320 Speaker 1: Wall Street Time. Now for the sports reports, Actually six 459 00:26:18,359 --> 00:26:20,640 Speaker 1: thirty six the sports report brought to you by Try 460 00:26:20,640 --> 00:26:22,919 Speaker 1: State OUTI here's Jon's dash our all right, and he 461 00:26:22,960 --> 00:26:25,200 Speaker 1: asked for that next Pacers game. It finished at home 462 00:26:25,240 --> 00:26:26,639 Speaker 1: in all the Indietta one the other night. That was 463 00:26:26,640 --> 00:26:28,600 Speaker 1: the next fourth loss row, and in three of them 464 00:26:28,600 --> 00:26:31,240 Speaker 1: they allowed at least a hundred and twenty five points 465 00:26:31,240 --> 00:26:34,240 Speaker 1: at Barkley's nets blew much but twenty five point, but 466 00:26:34,280 --> 00:26:36,800 Speaker 1: they held on beat. The Pacers won sixteen one on nine, 467 00:26:36,800 --> 00:26:39,160 Speaker 1: just the second one of the season. The coach Steve 468 00:26:39,560 --> 00:26:41,800 Speaker 1: was the message after the game. That was a message 469 00:26:41,800 --> 00:26:44,000 Speaker 1: on film this morning. That was the message in in 470 00:26:44,240 --> 00:26:47,600 Speaker 1: uh our walkthrough. Um, you know we we had a 471 00:26:47,640 --> 00:26:51,080 Speaker 1: disastrous defensive game Saturday night, And so the guys responded, 472 00:26:51,200 --> 00:26:53,960 Speaker 1: proud of him. Now that the affront energy Kevin ran 473 00:26:54,040 --> 00:26:56,600 Speaker 1: lad Brooklyn with thirty six points. Kybrie every had twenty 474 00:26:56,600 --> 00:26:58,560 Speaker 1: eight both average and over thirty a game, but no 475 00:26:58,600 --> 00:27:00,400 Speaker 1: one else has really been story in the work. Keef 476 00:27:00,440 --> 00:27:02,879 Speaker 1: has has been the worst than the NBA. As the 477 00:27:02,960 --> 00:27:04,760 Speaker 1: Nets ended their four game losing Streek, so did the 478 00:27:04,760 --> 00:27:07,720 Speaker 1: Cleveland Browns. The upset the Bengals thirty two, the thirteen 479 00:27:07,800 --> 00:27:11,200 Speaker 1: Nick Chubb, Hunter George Rushing two touchdowns, Browns at five sacks. 480 00:27:11,240 --> 00:27:13,639 Speaker 1: So Baltimore now with sole possession of first a f 481 00:27:13,720 --> 00:27:16,440 Speaker 1: C North and the Ravens just acquired line back of 482 00:27:16,440 --> 00:27:19,200 Speaker 1: the ro Kuan SMIs from Chicago. Smith leads the entire 483 00:27:19,320 --> 00:27:24,080 Speaker 1: NFL and tackles NFL trade deadline four o'clock today. We're 484 00:27:24,080 --> 00:27:27,480 Speaker 1: here tonight of the College Football Playoff Committee. They'll unveil 485 00:27:27,520 --> 00:27:30,320 Speaker 1: their first rankings. This week's a P pole has Georgia 486 00:27:30,359 --> 00:27:33,240 Speaker 1: and Tennessee ranked one two. When the two teams meet 487 00:27:33,280 --> 00:27:36,320 Speaker 1: Saturday in Mathis, Michigan. States has spending four football players 488 00:27:36,320 --> 00:27:38,760 Speaker 1: for their involving in a post game brawl the other 489 00:27:38,840 --> 00:27:41,760 Speaker 1: night at Michigan. Criminal charges could be coming. Phillies and 490 00:27:41,800 --> 00:27:43,400 Speaker 1: Astros will try to play Game three in the World 491 00:27:43,480 --> 00:27:46,080 Speaker 1: Series tonight in Philly the rain out last night means 492 00:27:46,119 --> 00:27:48,520 Speaker 1: Game five will be Thursday, and if the series is 493 00:27:48,560 --> 00:27:51,560 Speaker 1: still going, Friday will now be an off day. John 494 00:27:51,640 --> 00:27:55,320 Speaker 1: Stationing Big Sports. All right, thank you, John. At sixty 495 00:27:55,359 --> 00:27:57,080 Speaker 1: seven on Wall Street. Time to take a look at 496 00:27:57,080 --> 00:27:58,840 Speaker 1: stocks and some of the names that are moving in 497 00:27:58,880 --> 00:28:01,960 Speaker 1: the pre market. For that, we're joined by Bloomberg Radio 498 00:28:01,960 --> 00:28:05,640 Speaker 1: and TV Markets correspondent Createy Gupta and Created. Let's get 499 00:28:05,640 --> 00:28:08,600 Speaker 1: more details. First off on the breaking news involving those 500 00:28:08,680 --> 00:28:11,120 Speaker 1: drug makers. Yeah, let's start with Johnson Johnson. Here looks 501 00:28:11,119 --> 00:28:14,040 Speaker 1: like they're buying a bio mad for upfront payment of 502 00:28:14,080 --> 00:28:18,399 Speaker 1: three dollars per share in cash. Amy get this is 503 00:28:18,440 --> 00:28:20,600 Speaker 1: a classic M and A arbitrage that you're seeing in 504 00:28:20,600 --> 00:28:22,880 Speaker 1: the stock market right now. J and J shares down 505 00:28:22,960 --> 00:28:26,000 Speaker 1: at one point two percent. Remember the the acquisition or 506 00:28:26,320 --> 00:28:28,240 Speaker 1: for lack of a better term, is always going to 507 00:28:28,240 --> 00:28:29,959 Speaker 1: see their their shares take a little bit of a hit, 508 00:28:30,040 --> 00:28:33,160 Speaker 1: even on a positive day like today in the broader markets. 509 00:28:33,200 --> 00:28:35,520 Speaker 1: But on the other hand, a b O MAD up 510 00:28:35,560 --> 00:28:38,360 Speaker 1: about forty eight percent in the pre market. A b 511 00:28:38,760 --> 00:28:41,040 Speaker 1: m D is your ticker. There, Uh, just some more 512 00:28:41,080 --> 00:28:43,600 Speaker 1: details of the deal here. This does include some milestone 513 00:28:43,640 --> 00:28:48,840 Speaker 1: payments includes an enterprise value about sixteen point six billion dollars, 514 00:28:49,040 --> 00:28:51,240 Speaker 1: and some of those ABA MED holders will also get 515 00:28:51,400 --> 00:28:54,880 Speaker 1: some commercial and clinical milestones as well. Johnson Johnson, on 516 00:28:54,920 --> 00:28:56,760 Speaker 1: the other hand, is going to fund the deal through 517 00:28:56,840 --> 00:28:59,480 Speaker 1: cash on hand and short term financing. Remember this is 518 00:28:59,520 --> 00:29:01,560 Speaker 1: a massive theme that we tend to focus on in 519 00:29:01,560 --> 00:29:03,880 Speaker 1: the tech space, but across the S and P five hundred, 520 00:29:03,920 --> 00:29:08,280 Speaker 1: a lot of these mega large cap companies, tech and 521 00:29:08,360 --> 00:29:11,200 Speaker 1: otherwise have been sitting on piles of cash. Remember we 522 00:29:11,200 --> 00:29:14,840 Speaker 1: were coming off of a period of easy lending, easy issuance, 523 00:29:15,000 --> 00:29:16,520 Speaker 1: so a lot of companies have a lot of cash 524 00:29:16,520 --> 00:29:18,640 Speaker 1: to really deploy in the M and A space, and 525 00:29:18,720 --> 00:29:20,920 Speaker 1: Johnson Johnson is no exception. So, like I said, J 526 00:29:21,040 --> 00:29:23,720 Speaker 1: and J, those shares are down at one point two percent, 527 00:29:23,800 --> 00:29:26,440 Speaker 1: hovering about one seventy two per share, and a b 528 00:29:26,520 --> 00:29:29,200 Speaker 1: O med up about a well forty eight percent, right 529 00:29:29,280 --> 00:29:31,840 Speaker 1: to three hundred and seventy two dollars. Remember it's not 530 00:29:31,920 --> 00:29:34,560 Speaker 1: quite at that three eight that you are going to see, uh, 531 00:29:34,600 --> 00:29:36,680 Speaker 1: that the deal is going in for. But anyways, that's 532 00:29:36,680 --> 00:29:38,520 Speaker 1: not the only one. We also have Eli Lily as well. 533 00:29:38,720 --> 00:29:41,200 Speaker 1: L l Y is your taker there those years down 534 00:29:41,240 --> 00:29:43,120 Speaker 1: about three tents of one percent. They actually just came 535 00:29:43,120 --> 00:29:46,440 Speaker 1: out with earnings and are cutting their full year adjusted 536 00:29:46,440 --> 00:29:48,640 Speaker 1: EPs forecast. And now I remember they have been dealing 537 00:29:49,320 --> 00:29:51,479 Speaker 1: with some of the issues in the discount in the 538 00:29:51,680 --> 00:29:54,240 Speaker 1: drug space, so and kind of discounting some of their drugs. 539 00:29:54,280 --> 00:29:56,480 Speaker 1: They are involved in a legal case there. But they're 540 00:29:56,520 --> 00:29:59,920 Speaker 1: also reporting a third quarter EPs of one one dollar. 541 00:30:00,800 --> 00:30:04,400 Speaker 1: The consensus was a dollar ninety six. The problem here 542 00:30:04,440 --> 00:30:06,320 Speaker 1: for these shares and why you're seeing them under pressure 543 00:30:06,600 --> 00:30:08,480 Speaker 1: is the forecast is the forward guide. Is that even 544 00:30:08,520 --> 00:30:11,360 Speaker 1: though some of these numbers on the surface are pretty good, overall, 545 00:30:11,520 --> 00:30:14,760 Speaker 1: uh not so much. Alright, really quick thirty seconds China stocks, 546 00:30:14,760 --> 00:30:16,440 Speaker 1: what you got? Well, we've about to talk about some 547 00:30:16,480 --> 00:30:18,760 Speaker 1: of these rumors that are that are kind of surfacing 548 00:30:18,760 --> 00:30:21,360 Speaker 1: here and and remember I have to emphasize or unverified. 549 00:30:21,360 --> 00:30:22,880 Speaker 1: They are just rumors, but there are enough to give 550 00:30:22,920 --> 00:30:25,600 Speaker 1: some of these Chinese companies a little bit of a boost. 551 00:30:25,640 --> 00:30:27,640 Speaker 1: The likes of Ali Baba be A b A up 552 00:30:27,640 --> 00:30:30,600 Speaker 1: six point three percent on the idea that perhaps there 553 00:30:30,600 --> 00:30:33,680 Speaker 1: are meetings that are coming down the pipeline for some 554 00:30:33,720 --> 00:30:36,400 Speaker 1: thoughts on how trying to can exit their COVID zero 555 00:30:36,440 --> 00:30:39,760 Speaker 1: policy and I remember unverified still social media rumors, but 556 00:30:39,920 --> 00:30:41,360 Speaker 1: like I said, enough to give it a boost, not 557 00:30:41,400 --> 00:30:43,640 Speaker 1: just for those Chinese a yrs like Ali Baba, but 558 00:30:43,720 --> 00:30:46,040 Speaker 1: some of the American companies that have massive exposure there. 559 00:30:46,040 --> 00:30:47,600 Speaker 1: We love to look at the casino names for that. 560 00:30:47,760 --> 00:30:50,400 Speaker 1: Las Vegas Sands can be our post to child lvs 561 00:30:50,640 --> 00:30:54,000 Speaker 1: about five percent. Amy alright, Bloomberg Radio and TV markets 562 00:30:54,000 --> 00:30:56,800 Speaker 1: correspond and that was the lightning round with creating Goop 563 00:30:56,840 --> 00:30:59,200 Speaker 1: to creaty. Thank you so much. Always a pleasure looking 564 00:30:59,240 --> 00:31:01,640 Speaker 1: at stocks as a whole. Ahead of the open SMP 565 00:31:01,800 --> 00:31:04,360 Speaker 1: future thirty seven points higher. Del Future is up two 566 00:31:04,440 --> 00:31:08,200 Speaker 1: hundred nineteen points, NASDAC features up a hundred forty three points. 567 00:31:08,200 --> 00:31:11,560 Speaker 1: The ten year treasury of thirty seconds to yield at 568 00:31:11,560 --> 00:31:22,240 Speaker 1: three point nine four percent. This is Bloomberg. The Bloomberg 569 00:31:22,280 --> 00:31:24,640 Speaker 1: Sports Report was brought to you by Audie. Don't let 570 00:31:24,640 --> 00:31:27,160 Speaker 1: someone else drive off in the Autie model you've always wanted. 571 00:31:27,280 --> 00:31:29,120 Speaker 1: Visit your local try state out either you learned to 572 00:31:29,120 --> 00:31:31,640 Speaker 1: get behind the wheel of yours today, or visit Autie 573 00:31:31,640 --> 00:31:38,960 Speaker 1: Offers dot com for more information, markets, headlines and breaking 574 00:31:39,000 --> 00:31:41,920 Speaker 1: news twenty four hours a day at Bloomberg dot com 575 00:31:42,000 --> 00:31:45,560 Speaker 1: the Bloomberg Business at and at Bloomberg Quick TAKEE. He's 576 00:31:45,600 --> 00:31:54,960 Speaker 1: a Bloomberg Business Flash. I'm Nathan Hagar. Futures are moving 577 00:31:55,040 --> 00:31:57,520 Speaker 1: higher as the Fed gets ready for its to day 578 00:31:57,720 --> 00:31:59,920 Speaker 1: rate setting meeting. Let's go live to the first word 579 00:32:00,000 --> 00:32:02,600 Speaker 1: I can news task for today's morning call. Here's Bill Maloney. 580 00:32:02,600 --> 00:32:05,600 Speaker 1: Good morning Bill, Hey, good morning Nathan. That's right you 581 00:32:05,680 --> 00:32:07,920 Speaker 1: as features are in the green right now, deaf features 582 00:32:08,000 --> 00:32:10,480 Speaker 1: up two hundred and six points, subs game thirty seven 583 00:32:10,520 --> 00:32:13,360 Speaker 1: and and as that futures rise by one thirty eight, 584 00:32:13,680 --> 00:32:16,880 Speaker 1: the US ten year falls to three point nine four percent, 585 00:32:17,000 --> 00:32:19,280 Speaker 1: Gold is up eighteen oil is in the green, and 586 00:32:19,320 --> 00:32:22,560 Speaker 1: bitcoin is trading higher by one point one percent. Hong 587 00:32:22,640 --> 00:32:25,640 Speaker 1: Kong rose five point two percent overnight. Note that Shinese 588 00:32:25,640 --> 00:32:30,440 Speaker 1: markets rallied after unconfirmed social posts on reopening, and European 589 00:32:30,480 --> 00:32:33,160 Speaker 1: markets are firmly in the green this morning, back in 590 00:32:33,200 --> 00:32:35,560 Speaker 1: the US, on the economic front, at ninety five sp 591 00:32:35,680 --> 00:32:38,520 Speaker 1: Global Manufacturing p m I and at ten o'clock Joel's 592 00:32:38,600 --> 00:32:42,320 Speaker 1: job openings and construction spending. Regarding some of the earnings 593 00:32:42,360 --> 00:32:45,600 Speaker 1: this morning, Eli lily Cut, it's fisically your adjusted EPs forecast, 594 00:32:45,640 --> 00:32:49,720 Speaker 1: while fives are raised its two outlook. In deal news, 595 00:32:49,840 --> 00:32:51,480 Speaker 1: J and J to buy a bio met for three 596 00:32:52,080 --> 00:32:54,960 Speaker 1: hours a share in cash and wrapping things up for 597 00:32:55,120 --> 00:32:58,040 Speaker 1: Solar is raised to equate at Barkley's Everyonson Electric was 598 00:32:58,080 --> 00:33:00,520 Speaker 1: cut to hold at Deutsche Bank, and Carbona raised a 599 00:33:00,600 --> 00:33:04,040 Speaker 1: neutral over at JP. Morgim live from the First Breaking 600 00:33:04,040 --> 00:33:06,600 Speaker 1: News Descon Bill Maloney Nathan Okay, Bill, thanks to you 601 00:33:06,640 --> 00:33:08,880 Speaker 1: have live breaking news over your Bloomberg type squawk on 602 00:33:08,920 --> 00:33:11,600 Speaker 1: the terminal s q U A go. That's a Bloomberg 603 00:33:11,640 --> 00:33:13,640 Speaker 1: business flash and now here's Michael Barr with more on 604 00:33:13,720 --> 00:33:16,200 Speaker 1: what's going on around the world. Michael Nathan, thank you 605 00:33:16,280 --> 00:33:19,480 Speaker 1: very much. The Supreme Court heard arguments involving Harvard and 606 00:33:19,600 --> 00:33:23,200 Speaker 1: the University of North Carolina that could end the affirmative 607 00:33:23,200 --> 00:33:27,160 Speaker 1: mansion process in college admissions. The Court is a new 608 00:33:27,200 --> 00:33:30,080 Speaker 1: conservative majority and one that seems ready to roll back, 609 00:33:30,120 --> 00:33:34,440 Speaker 1: if not overturn it. Former Israeli Preminister Benjamin Netan Yahoo 610 00:33:34,480 --> 00:33:38,200 Speaker 1: has cast his vote in Jerusalem. Israelis are voting in 611 00:33:38,240 --> 00:33:41,719 Speaker 1: their fifth parliamentary election in less than four years. Net 612 00:33:41,840 --> 00:33:44,960 Speaker 1: and Yahoo is looking to return to office. Bill try 613 00:33:45,000 --> 00:33:47,720 Speaker 1: to make up Game three of the World Series in Philadelphia. 614 00:33:47,880 --> 00:33:51,240 Speaker 1: Last night, the Phillies and Astro's game was postponed because 615 00:33:51,240 --> 00:33:54,640 Speaker 1: of rain. In the NBA, the Nets one, the Wizards lost. 616 00:33:54,840 --> 00:33:57,160 Speaker 1: In the NHL, the Capitals lost in the shootout with 617 00:33:57,200 --> 00:34:01,040 Speaker 1: the Hurricanes three to Monday Night football, the Browns beat 618 00:34:01,120 --> 00:34:05,200 Speaker 1: the Ravens. Global News twenty four hours a day on 619 00:34:05,320 --> 00:34:08,520 Speaker 1: here and on Bloomberg Quickdake, powered by more than twenty 620 00:34:08,560 --> 00:34:11,400 Speaker 1: seven hundred journalist and analysts more than a hund twenty countries. 621 00:34:11,560 --> 00:34:15,480 Speaker 1: I'm Michael Barr. This is Bloomberg. The following commentary is 622 00:34:15,520 --> 00:34:19,920 Speaker 1: from Bloomberg Opinion. Tax loss harvesters prepare for a bumper crop. 623 00:34:20,239 --> 00:34:23,479 Speaker 1: I'm Alexis Lean. This a calmness for Bloomberg Opinion. There's 624 00:34:23,480 --> 00:34:27,279 Speaker 1: no sugarcoating the stock market plunge this year, but there 625 00:34:27,320 --> 00:34:29,880 Speaker 1: is a small consolation prize. You have one of the 626 00:34:29,960 --> 00:34:33,480 Speaker 1: best opportunities in years to lower your tax bill. That's 627 00:34:33,520 --> 00:34:36,279 Speaker 1: because the U. S Tax code allows investors to sell 628 00:34:36,480 --> 00:34:40,320 Speaker 1: poor performing stocks and use those investment losses to offset 629 00:34:40,320 --> 00:34:44,720 Speaker 1: capital gains from selling better performing assets such as stocks, bonds, 630 00:34:44,800 --> 00:34:48,160 Speaker 1: a home, or business. For some mutual fund investors, the 631 00:34:48,200 --> 00:34:51,799 Speaker 1: benefit of tax loss harvesting will be amplified in December. 632 00:34:52,080 --> 00:34:55,640 Speaker 1: Fund investors maybe in for a nasty surprise. Not only 633 00:34:55,680 --> 00:34:58,640 Speaker 1: will most have suffered negative returns, but they may also 634 00:34:58,680 --> 00:35:02,640 Speaker 1: be receiving a capital game distribution. Locking in stock glasses 635 00:35:02,680 --> 00:35:06,160 Speaker 1: now can help to offset those unwelcome distributions. It's been 636 00:35:06,200 --> 00:35:08,640 Speaker 1: a rocky here in the markets, but smart moves now 637 00:35:08,840 --> 00:35:12,239 Speaker 1: can make taxes less painful. Came April. I'm Alexis Lee 638 00:35:12,280 --> 00:35:15,040 Speaker 1: on this. For more opinion, please go to Bloomberg dot com, 639 00:35:15,120 --> 00:35:18,400 Speaker 1: slash opinion or opi and go from the Bloomberg terminal. 640 00:35:18,560 --> 00:35:21,400 Speaker 1: These has been Bloomberg Opinion and you can hear Bloomberg 641 00:35:21,440 --> 00:35:24,560 Speaker 1: Opinion commentaries every weekday at this time. Terminal customers can 642 00:35:24,600 --> 00:35:27,360 Speaker 1: read more at O P I n go. It is 643 00:35:27,360 --> 00:35:29,480 Speaker 1: six fifty on Wall Street. Time to turn the news 644 00:35:29,520 --> 00:35:32,200 Speaker 1: in science and technology. The Bloomberg n j I T 645 00:35:32,400 --> 00:35:34,959 Speaker 1: STEM Report is brought to you by the New Jersey 646 00:35:35,040 --> 00:35:38,480 Speaker 1: Institute of Technology, rank a top one hundred national university 647 00:35:38,760 --> 00:35:41,279 Speaker 1: by US Use of Role Report and number fourteen in 648 00:35:41,320 --> 00:35:44,359 Speaker 1: the nation on Money's Best Colleges List. Learn more at 649 00:35:44,480 --> 00:35:46,600 Speaker 1: n j I T dot e DU. Now Here's what's 650 00:35:46,600 --> 00:35:50,439 Speaker 1: making news and science, technology, engineering, and math. The Biden 651 00:35:50,440 --> 00:35:54,920 Speaker 1: administration's restrictions on US citizens assisting China's chip industry will 652 00:35:54,960 --> 00:35:58,400 Speaker 1: be more narrowly enforced than feared. That suggests a smaller 653 00:35:58,400 --> 00:36:02,080 Speaker 1: than expected impact on Semikindr companies. The sanctions were introduced 654 00:36:02,120 --> 00:36:04,800 Speaker 1: to keep cutting edge chip technologies out of the reach 655 00:36:04,840 --> 00:36:08,520 Speaker 1: of China's military. Elon Musk is preparing to appoint new 656 00:36:08,600 --> 00:36:12,000 Speaker 1: product leadership inside Twitter. Bloomberg News has learned Musk met 657 00:36:12,000 --> 00:36:14,759 Speaker 1: over the weekend with close friends and advisers on how 658 00:36:14,760 --> 00:36:17,200 Speaker 1: best to change the service he just bought for forty 659 00:36:17,280 --> 00:36:20,680 Speaker 1: four billion dollars. Meanwhile, managers have been compiling lists of 660 00:36:20,719 --> 00:36:24,080 Speaker 1: staff who could be cut, and Toyota says its profit 661 00:36:24,160 --> 00:36:26,840 Speaker 1: fell thirty one percent in the last quarter because of 662 00:36:26,840 --> 00:36:29,400 Speaker 1: a shortage of chips. The maker of the camera, Sedan, 663 00:36:29,480 --> 00:36:33,320 Speaker 1: Prius Hybrid and Lexus luxury models said it faces many challenges, 664 00:36:33,360 --> 00:36:38,200 Speaker 1: including rising interest rates, soaring materials costs, and fluctuating exchange rates. 665 00:36:38,080 --> 00:36:42,240 Speaker 1: A shortage in semiconductors, COVID lockdowns in Shanghai, and flooding 666 00:36:42,239 --> 00:36:46,120 Speaker 1: in South Africa also bit into Toyota's earnings. That's the 667 00:36:46,120 --> 00:36:49,600 Speaker 1: Bloomberg and j I t Stem report. Amy all Right 668 00:36:49,600 --> 00:36:52,120 Speaker 1: thank you, Nathan, and we're live from the Bloomberg Interactive 669 00:36:52,160 --> 00:36:54,719 Speaker 1: Broker Studios where it is six fifty two on Wall 670 00:36:54,719 --> 00:36:57,160 Speaker 1: Street time out of check what's going on in d C. 671 00:36:57,400 --> 00:36:59,880 Speaker 1: And some of the top stories in our nation's capital 672 00:37:00,200 --> 00:37:04,000 Speaker 1: include President Biden's warning to oil firms to reinvest in 673 00:37:04,040 --> 00:37:07,719 Speaker 1: production or face higher taxes, North Korea maybe laying the 674 00:37:07,719 --> 00:37:10,840 Speaker 1: groundwork for its first nuclear test in five years, and 675 00:37:10,920 --> 00:37:13,960 Speaker 1: former President Trump looking to shield as tax returns from 676 00:37:13,960 --> 00:37:16,360 Speaker 1: the public eye. Let's get more on these stories with 677 00:37:16,400 --> 00:37:19,680 Speaker 1: the host of Bloomberg Sound On, Joe Matthew. Joe, thank 678 00:37:19,719 --> 00:37:21,719 Speaker 1: you so much for joining us this morning. First, the 679 00:37:21,760 --> 00:37:25,359 Speaker 1: President going to need some congressional support to do this 680 00:37:25,560 --> 00:37:27,879 Speaker 1: when fall tax plan? Is he gonna get it? Well, 681 00:37:27,920 --> 00:37:30,719 Speaker 1: you know you're asking the right question. Starting to think, 682 00:37:30,760 --> 00:37:32,840 Speaker 1: you know, they're not getting back together here Amy the 683 00:37:32,840 --> 00:37:35,560 Speaker 1: White House and big Oil. We've heard this message before 684 00:37:35,680 --> 00:37:38,680 Speaker 1: from the President. A new level of rhetoric though, as 685 00:37:38,760 --> 00:37:42,879 Speaker 1: as he refers to a windfall of war, accusing big 686 00:37:42,920 --> 00:37:46,120 Speaker 1: oil ex Son Chevron Shell of war profiteering, it's a 687 00:37:46,160 --> 00:37:48,600 Speaker 1: pretty heavy accusation. Is not going to make a lot 688 00:37:48,600 --> 00:37:51,480 Speaker 1: of friends in Houston. Uh, not that they were making friends. 689 00:37:51,480 --> 00:37:53,160 Speaker 1: So here we are the difference this time those that 690 00:37:53,200 --> 00:37:55,319 Speaker 1: instead of begging oil companies to drill more, they are 691 00:37:55,360 --> 00:37:58,760 Speaker 1: in fact asking to work with Congress to craft this tax. 692 00:37:59,320 --> 00:38:01,759 Speaker 1: Uh if if these companies don't show that they're reinvesting 693 00:38:01,760 --> 00:38:04,480 Speaker 1: in production, that part of the story hasn't changed. The 694 00:38:04,520 --> 00:38:06,640 Speaker 1: reality check those that Democrats have tried to do this 695 00:38:06,680 --> 00:38:09,480 Speaker 1: for years, a windfall tax, and if it wasn't already 696 00:38:09,480 --> 00:38:12,319 Speaker 1: happening with Democratic control of the House, the Senate, the 697 00:38:12,320 --> 00:38:14,840 Speaker 1: White House. Look, it could be another world after the 698 00:38:14,840 --> 00:38:17,960 Speaker 1: mid terms here even if Democrats somehow keep control of 699 00:38:18,000 --> 00:38:20,960 Speaker 1: the House, the votes are not in the Senate for this. 700 00:38:21,040 --> 00:38:23,440 Speaker 1: So you know, it's a powerful message to send from 701 00:38:23,440 --> 00:38:26,000 Speaker 1: the White House, to get on TV, send that message 702 00:38:26,000 --> 00:38:28,440 Speaker 1: a week before elections. But that may be all it is. 703 00:38:28,440 --> 00:38:30,680 Speaker 1: Is kind of a messaging moment for Joe Biden. I 704 00:38:30,719 --> 00:38:33,400 Speaker 1: wondered about that because as Democrats have been pushing for 705 00:38:33,440 --> 00:38:37,160 Speaker 1: this for for years, does this mean the president's kind 706 00:38:37,160 --> 00:38:39,400 Speaker 1: of holding his own party accountable for not getting it 707 00:38:39,440 --> 00:38:42,000 Speaker 1: done soon? That's an interesting way of looking at it, 708 00:38:42,280 --> 00:38:45,160 Speaker 1: And I suppose you could say that. But look, you know, 709 00:38:45,200 --> 00:38:48,360 Speaker 1: this is something that the Democrats, progressive Democrats have largely 710 00:38:48,840 --> 00:38:51,279 Speaker 1: UH supported. And when we consider where we are now 711 00:38:51,280 --> 00:38:53,120 Speaker 1: with a week to go, can you even imagine a 712 00:38:53,120 --> 00:38:56,120 Speaker 1: week from today, we're finally voting three dollars and seventy 713 00:38:56,120 --> 00:38:58,239 Speaker 1: five cents? Seventy six will say if we rounded up, 714 00:38:58,280 --> 00:39:03,680 Speaker 1: is today's triple a national average above five dollars a 715 00:39:03,760 --> 00:39:06,440 Speaker 1: gallon in California and in some areas of the country. 716 00:39:06,440 --> 00:39:09,040 Speaker 1: The president had to do something, he had to say something, 717 00:39:09,080 --> 00:39:11,279 Speaker 1: and at least if you're gonna be blamed for this, 718 00:39:11,400 --> 00:39:13,120 Speaker 1: you can turn around of the American people and say, 719 00:39:13,160 --> 00:39:15,960 Speaker 1: you know what, we tried everything we could, but we 720 00:39:16,040 --> 00:39:18,320 Speaker 1: just couldn't get it through Congress. And that's the message 721 00:39:18,360 --> 00:39:20,839 Speaker 1: that has, you know, worked for presidents over the years. 722 00:39:21,239 --> 00:39:23,680 Speaker 1: All right, well, let's shift gears. Now. Look at North Korea. 723 00:39:23,719 --> 00:39:26,319 Speaker 1: They're now threatening to unleash a powerful action at the 724 00:39:26,400 --> 00:39:30,400 Speaker 1: US doesn't talk those joint military drills with partners, including 725 00:39:30,600 --> 00:39:34,040 Speaker 1: with South Korea. Where's this going? Yeah, look, you know 726 00:39:34,080 --> 00:39:36,719 Speaker 1: we're talking about a potential nuclear test. It's not a 727 00:39:36,760 --> 00:39:41,120 Speaker 1: shocker here. As the US conducts military exercises with South 728 00:39:41,200 --> 00:39:44,799 Speaker 1: Korea that's seen as someone of a provocation, but it's 729 00:39:44,840 --> 00:39:47,320 Speaker 1: also pretty rich. After Kim Jong un just unleashed the 730 00:39:47,320 --> 00:39:50,440 Speaker 1: biggest series of missile tests we've seen in years, largely 731 00:39:50,480 --> 00:39:53,600 Speaker 1: to get the world's attention as as Russia sucks all 732 00:39:53,600 --> 00:39:55,759 Speaker 1: the oxygen out of the room. He even sent one 733 00:39:55,800 --> 00:39:58,360 Speaker 1: rocket over Japan, right. He rattled a lot of nerves 734 00:39:58,360 --> 00:40:01,520 Speaker 1: in the region, which is partly why we have these activities. 735 00:40:01,560 --> 00:40:04,239 Speaker 1: And we're talking, by the way, about two forty airplanes 736 00:40:04,880 --> 00:40:09,000 Speaker 1: uh honing their wartime capabilities, as the Pentagon says, the 737 00:40:09,040 --> 00:40:12,440 Speaker 1: Seventh Air Force says, they're they're flying about sixteen hundred sorties. 738 00:40:12,480 --> 00:40:15,279 Speaker 1: It's it's hard to miss. But yeah, the North is 739 00:40:15,320 --> 00:40:17,120 Speaker 1: threatening a new test, which would be the first and 740 00:40:17,160 --> 00:40:20,640 Speaker 1: about five years. And frankly, uh, it's it's amazing how 741 00:40:20,680 --> 00:40:22,600 Speaker 1: much he gets away with. It might not lead to 742 00:40:22,640 --> 00:40:25,560 Speaker 1: anything if he does this, but it certainly gives you 743 00:40:25,600 --> 00:40:27,880 Speaker 1: a sense of of the just the risk level and 744 00:40:27,960 --> 00:40:30,480 Speaker 1: that part of the world around the Korean Peninsula. It's 745 00:40:30,480 --> 00:40:32,040 Speaker 1: not to be forgotten. We spent a lot of time 746 00:40:32,080 --> 00:40:35,120 Speaker 1: talking about China and Russia, but Kim Jong un is 747 00:40:35,200 --> 00:40:38,359 Speaker 1: still causing trouble. I've got a lot more questions about that, 748 00:40:38,360 --> 00:40:40,560 Speaker 1: but we are running out of time. Former President Trump 749 00:40:40,600 --> 00:40:43,600 Speaker 1: wants the Supreme Court to block that Congressional committee from 750 00:40:43,640 --> 00:40:47,120 Speaker 1: getting years of his tax returns. Now, his legal team 751 00:40:47,120 --> 00:40:51,279 Speaker 1: filed an emergency application just yesterday. What does that tell you, Yeah, well, 752 00:40:51,400 --> 00:40:53,799 Speaker 1: the tells me that we've reached the end of the 753 00:40:53,840 --> 00:40:56,920 Speaker 1: line here. You know, an emergency application to the justices 754 00:40:57,400 --> 00:40:59,680 Speaker 1: means that there are no other legal options at this point, 755 00:40:59,680 --> 00:41:01,759 Speaker 1: and so a Chief Justice will have to figure out 756 00:41:01,760 --> 00:41:03,439 Speaker 1: if if he wants to handle this on his own 757 00:41:03,920 --> 00:41:06,480 Speaker 1: or or kick it to UH to other justices. But 758 00:41:06,520 --> 00:41:08,760 Speaker 1: this is the Ways and Means Committee in the House, 759 00:41:09,280 --> 00:41:11,560 Speaker 1: and the argument here is they've been looking for six 760 00:41:11,640 --> 00:41:14,560 Speaker 1: years of his tax returns. The president has been incredibly 761 00:41:14,560 --> 00:41:17,360 Speaker 1: successful keeping us all from reading them, going back to 762 00:41:17,440 --> 00:41:19,880 Speaker 1: his time as a candidate, of course. But they argue, 763 00:41:19,880 --> 00:41:21,960 Speaker 1: and this is what has to be decided, that there 764 00:41:22,080 --> 00:41:26,160 Speaker 1: is in fact a legislative purpose forgetting these tax documents. 765 00:41:26,160 --> 00:41:28,239 Speaker 1: This isn't just for an expose a It has to 766 00:41:28,239 --> 00:41:31,160 Speaker 1: be for the sake of crafting legislation. The Ways It 767 00:41:31,160 --> 00:41:33,799 Speaker 1: Means Chair Richie Neil says, Yeah, we're gonna make legislation 768 00:41:34,080 --> 00:41:37,279 Speaker 1: that shows how accountable presidents must be, but we need 769 00:41:37,320 --> 00:41:40,320 Speaker 1: to see his tax records first. Unclear how the Supreme 770 00:41:40,360 --> 00:41:43,400 Speaker 1: Court weighs in on this one. But but President Biden 771 00:41:43,800 --> 00:41:46,520 Speaker 1: and President Donald Trump, I should say the former president 772 00:41:46,640 --> 00:41:49,520 Speaker 1: has been very consistent on this, and this is gonna 773 00:41:49,520 --> 00:41:51,319 Speaker 1: be a riot if they do release it. It's not 774 00:41:51,440 --> 00:41:54,840 Speaker 1: likely to happen, all right, Bloomberg Washington Correspondent Joe Matthew. 775 00:41:54,880 --> 00:41:56,759 Speaker 1: Always a pleasure. Thank you so much, and you can 776 00:41:56,760 --> 00:41:59,960 Speaker 1: read more about these stories on Bloomberg dot com or 777 00:42:00,000 --> 00:42:02,680 Speaker 1: the Bloomberg Terminal. And a reminder, follow all of the 778 00:42:02,719 --> 00:42:05,960 Speaker 1: latest on Bloomberg Radio in Washington, Bloomberg ninety nine one 779 00:42:05,960 --> 00:42:08,399 Speaker 1: and one oh five point seven FM h D two. 780 00:42:08,480 --> 00:42:11,120 Speaker 1: Some breaking news now, Nathan, Yeah, Amy, We're watching shares 781 00:42:11,120 --> 00:42:15,720 Speaker 1: of Uber Technologies jump on earnings, crossing the Bloomberg Terminal. 782 00:42:15,760 --> 00:42:19,240 Speaker 1: Third quarter revenue beat analyst estimates, though the rideshare company 783 00:42:19,280 --> 00:42:22,160 Speaker 1: does see fourth quarter gross bookings that came in with 784 00:42:22,239 --> 00:42:25,080 Speaker 1: a miss of what Wall Street was expecting. Still, investors 785 00:42:25,120 --> 00:42:26,839 Speaker 1: seem to like what they're seeing on the top line. 786 00:42:26,880 --> 00:42:29,400 Speaker 1: Right now, Uber shares are higher in the pre market 787 00:42:29,440 --> 00:42:33,399 Speaker 1: by six point seven percent, futures moving higher as well. 788 00:42:33,640 --> 00:42:36,200 Speaker 1: SMP futures up thirty eight point, staff futures up two 789 00:42:36,239 --> 00:42:38,840 Speaker 1: undred fourteen and nanastack futures are higher by a hundred 790 00:42:38,920 --> 00:42:41,879 Speaker 1: forty points. Much more to come on Bloomberg surveillance. That's 791 00:42:41,920 --> 00:42:45,600 Speaker 1: coming up next for Amy Morris. I'm Nathan Hagar. This 792 00:42:46,560 --> 00:42:47,239 Speaker 1: is Bloomberg