WEBVTT - Bloomberg Daybreak: October 19, 2022 - Hour 2 (Radio) 0:00:02.360 --> 0:00:05.600 Live from the Bloomberg Interactive Berger Studios. This is is Bloomberg 0:00:05.680 --> 0:00:09.400 day Break for Wednesday, October two. Coming up this hour, 0:00:09.600 --> 0:00:11.800 The S and P five looks to make it three 0:00:11.920 --> 0:00:15.160 straight winning sessions to start the week. Netflix share sewer 0:00:15.280 --> 0:00:18.200 as user growth signals the worst is over. In the UK, 0:00:18.440 --> 0:00:22.320 Inflation surches to double digits, and President vit Him plans 0:00:22.320 --> 0:00:25.639 to announce he's tapping into the strategic oil reserves. The 0:00:25.720 --> 0:00:29.120 latest polls show New York's governor's race hast tightened, plus 0:00:29.240 --> 0:00:31.880 Georgia voters turned out in record numbers on the first 0:00:31.920 --> 0:00:35.040 day of early ballots. I'm Michael Blair. More Ahead, I'm 0:00:35.080 --> 0:00:37.600 John stash Our and sports. The Yankees beat the Guardians, 0:00:37.600 --> 0:00:39.760 They start the Alcs tonight in Youth to the Philly 0:00:39.760 --> 0:00:44.760 shut Out. The Padres wins with the Devil's Island. That's 0:00:44.760 --> 0:00:48.120 Alls Trading ahead on Bloomberg day Break on Bloomberg, he 0:00:48.200 --> 0:00:51.960 Liven three on New York, Bloomberg one, Washington, d C, 0:00:52.440 --> 0:00:56.000 Bloomberg one oh six one, Boston Bloomberg nine sixties and 0:00:56.120 --> 0:01:00.200 Francisco Sirius Exam one nineteen and around the world Old 0:01:00.200 --> 0:01:03.840 on Bloomberg Radio dot Com and via the Bloomberg Business. 0:01:07.240 --> 0:01:10.560 Good morning. I'm Nathan Hagrin and I'm Karen Moscow in 0:01:10.720 --> 0:01:13.399 US stock index futures around the rise this morning. We're 0:01:13.400 --> 0:01:15.000 coming up to six out one on Wall Street, and 0:01:15.000 --> 0:01:17.600 we check the markets every fifteen minutes throughout the trading day. 0:01:17.680 --> 0:01:21.240 On Bloomberg, SMP future is up seventeen points down futures 0:01:21.280 --> 0:01:24.319 of eighty nastack futures of eighty one. The decks in 0:01:24.400 --> 0:01:27.480 Germany as of a quarter percent, ten year treasury down 0:01:27.480 --> 0:01:30.039 twelve thirty seconds, held four point oh five percent. They 0:01:30.120 --> 0:01:32.880 yield on the two year four point four seven percent, 0:01:33.240 --> 0:01:35.880 and the euro point nine eight one eight against the 0:01:35.880 --> 0:01:38.880 dollar British pound one point one to seven nine. Nathan 0:01:39.040 --> 0:01:41.600 Karen the SMP five hundreds coming off back to back 0:01:41.600 --> 0:01:44.240 wins to start the week. The index is up three 0:01:44.280 --> 0:01:47.960 point eight percent in just two days. However, Max Kentner, 0:01:48.040 --> 0:01:51.680 chief Multi Assets strategist at HSBC, thinks stocks will remain 0:01:51.720 --> 0:01:54.880 under pressure and the FED will not change course. But 0:01:54.960 --> 0:01:57.639 the point for me is that the FED is really 0:01:57.680 --> 0:02:00.560 only going to pivot. In my view way, things are 0:02:00.560 --> 0:02:03.720 going to go horribly wrong, not just wrong, but really 0:02:03.760 --> 0:02:06.880 and I have to emphasize that horribly wrong, right, So 0:02:07.040 --> 0:02:09.520 it will not be sufficient. If we see you one 0:02:09.639 --> 0:02:13.040 to three months off a bit worse than economic data, right, 0:02:13.080 --> 0:02:15.399 and oh maybe we're going to go into refesssion now, 0:02:15.760 --> 0:02:19.000 that will not be sufficient. HSBCS Max Kenner says he 0:02:19.040 --> 0:02:21.840 would fade this rally in stocks well. The rise in 0:02:21.880 --> 0:02:24.400 equities this week Nathan has been fueled by a solid 0:02:24.440 --> 0:02:27.800 starter earning season, and it continued after the bell with Netflix, 0:02:27.880 --> 0:02:30.480 the streaming leader added it better than expected two point 0:02:30.520 --> 0:02:33.840 four million customers in the third quarter. Read Hastings is 0:02:33.919 --> 0:02:37.160 co founder and sherman of Netflix. Well, thank god we're 0:02:37.200 --> 0:02:41.560 done with shrinking quarters, so a big feeling of we're 0:02:41.600 --> 0:02:44.239 back to the positivity. We still got f X, so 0:02:44.400 --> 0:02:47.080 that's a huge hit. Uh, you know, as we've explained, 0:02:47.160 --> 0:02:51.120 so that's not going to go away. But other than that, 0:02:51.480 --> 0:02:54.240 all the stars are lining up very well for us. 0:02:54.560 --> 0:02:57.440 Netflix chairman Read Hastings says the company expect to add 0:02:57.440 --> 0:03:00.440 another four and a half million global subscribers this period, 0:03:00.520 --> 0:03:03.520 despite headwinds from foreign exchange. Looks like at some other 0:03:03.520 --> 0:03:06.000 stocks on the move following earnings. Karen shares of United 0:03:06.040 --> 0:03:08.400 Airlines are up more than seven percent this morning. The 0:03:08.400 --> 0:03:11.120 airline seas profit well above estimates in the final quarter 0:03:11.120 --> 0:03:13.200 of the year, and that's being fueled by a rebound 0:03:13.280 --> 0:03:16.440 in corporate travel and leisure trips. Shares of Adelbi are 0:03:16.520 --> 0:03:18.920 up more than two percent. The maker of creative design 0:03:18.960 --> 0:03:22.480 software reiterated its forecasts for the current quarter. That's relieving 0:03:22.480 --> 0:03:26.080 fearce economic uncertainty would hinder demand. Well up next Nathan, 0:03:26.080 --> 0:03:28.880 the earnings continue with results from twenty companies of the 0:03:29.040 --> 0:03:31.160 S and P five hundred. The biggest name on today's 0:03:31.160 --> 0:03:33.400 list is Tesla. We get a preview of those numbers 0:03:33.400 --> 0:03:36.840 from Bloomberg's Jeff Billinger. Shares of the electric car maker 0:03:36.920 --> 0:03:40.119 have been under pressure ever since the company reported third 0:03:40.240 --> 0:03:44.200 quarter delivery figures that fell short of forecast. Today's report 0:03:44.240 --> 0:03:48.200 will get close scrutiny. Investors will look beyond sales, earnings 0:03:48.200 --> 0:03:51.840 and profit margins. Bullish fourth quarter delivery guidance would be 0:03:51.920 --> 0:03:56.880 especially welcome. Bloomberg Intelligence says the plunge in Tesla's stock 0:03:57.160 --> 0:03:59.320 could make this a good time for the company to 0:03:59.520 --> 0:04:04.200 initiate eight capital returns without hurting its balance sheet. Jeff Bollinger, 0:04:04.360 --> 0:04:07.360 Bloomberg Daybreak. Thanks Jeff. Turning to the economy now. Do 0:04:07.480 --> 0:04:09.560 not look for a pause in rate hikes from the FED. 0:04:09.640 --> 0:04:12.560 That's according to Minneapolis FED President Neil cash Cary. He 0:04:12.640 --> 0:04:16.440 says the central bank must continue tightening as inflation remains hot. 0:04:16.560 --> 0:04:20.200 If we don't see progress in underlying inflation or chord inflation, 0:04:20.960 --> 0:04:24.120 I don't see why I would advocate stopping at four 0:04:24.120 --> 0:04:26.040 and a half for four or seven five or something 0:04:26.040 --> 0:04:28.800 like that, Minneapolis, said President Neil cash car He says 0:04:28.800 --> 0:04:31.400 he sees interest rates reaching the mid four's early next year. 0:04:31.640 --> 0:04:33.680 Stay tuned for more from the FED when we speak 0:04:33.720 --> 0:04:37.080 live with St. Louis President Jim Bullard. Catch that interview 0:04:37.120 --> 0:04:41.279 today at three thirty pm Ball Street Time on Bloomberg Radio. Meantime, Nathan, 0:04:41.279 --> 0:04:43.119 the FED will hand out a grade on the health 0:04:43.160 --> 0:04:45.400 of the US economy today with the release of its 0:04:45.440 --> 0:04:47.960 regional Beije Book, and we get more from Bloomberg's of 0:04:47.960 --> 0:04:50.599 Any down to You Dice. Today's beach Book, based on 0:04:50.720 --> 0:04:54.039 anecdotal reports in the FITS twelve district banks, will help 0:04:54.080 --> 0:04:58.400 set the stage for November's policy meeting. Bloomberg Economics notes 0:04:58.480 --> 0:05:01.960 the prior bache book and early September indicated little change, 0:05:02.400 --> 0:05:06.200 unbalanced the most lackluster, showing you a pandemic recovery but 0:05:06.320 --> 0:05:09.760 not yet alarming. The next policy session is set for 0:05:09.839 --> 0:05:13.760 November one and second, and economists anticipated another interest rate 0:05:13.839 --> 0:05:18.240 hike aimed at containing inflation. Beneat Judas Bloomberg Daybreak, then 0:05:18.240 --> 0:05:20.400 he thanks for also seeing inflation soar in the UK. 0:05:20.680 --> 0:05:22.880 For more on today's red hot price reading, let's go 0:05:22.920 --> 0:05:26.080 to London and check in with Bloomberg's James Wilcock. Good morning, James, 0:05:26.080 --> 0:05:29.360 Good morning, Nathan and Karen's soaring inflation. Indeed, price rises 0:05:29.400 --> 0:05:32.039 hit a four decade high of ten point one percent 0:05:32.120 --> 0:05:35.320 year on year through September. That's slightly above what economists forecast. 0:05:35.680 --> 0:05:37.480 It's a call to arms for the Bank of England 0:05:37.480 --> 0:05:40.239 after the central bank has found itself distracted by chaos 0:05:40.240 --> 0:05:43.599 in the UK bond market. September's inflation figure is also 0:05:43.800 --> 0:05:47.240 used as the baseline to increase state welfare payments and pensions, 0:05:47.360 --> 0:05:49.680 so that increase puts more pressure on the UK government's 0:05:49.680 --> 0:05:52.279 fiscal policy. As promise of this, trust tries to bounce 0:05:52.279 --> 0:05:55.360 the books in London. James Wilcock, Bling Bird Daybreak, James, 0:05:55.440 --> 0:05:57.920 think so back you're in the US. The Biden administration 0:05:58.040 --> 0:06:00.800 is making more moves to lower gas price is Later today, 0:06:00.839 --> 0:06:03.800 the President announces another fifteen million barrels coming out of 0:06:03.800 --> 0:06:07.320 the Strategic Petroleum Reserve. But still Bob McNally, founder and 0:06:07.360 --> 0:06:10.080 president of Rapid and Energy, says it might not be 0:06:10.240 --> 0:06:13.880 enough going against OPEC plus with the sprs like going 0:06:13.920 --> 0:06:16.760 into a fight with you know, the guys that with 0:06:16.800 --> 0:06:19.600 a square guns, right. It's a finite resource. You get 0:06:19.640 --> 0:06:21.440 to use it once, and I think this is going 0:06:21.480 --> 0:06:24.320 to make the coming boom cycle in oil prices even boom. Here, 0:06:24.640 --> 0:06:27.560 Rapid and Energy President Rob Bob McNally spoke with our 0:06:27.600 --> 0:06:30.719 Washington correspondent Joe Matthew on Bloomberg Sound on Catch the 0:06:30.720 --> 0:06:33.919 program weekdays at five pm Eastern on Bloomberg Radio and 0:06:34.000 --> 0:06:36.440 checking oil prices right now, nine x screwed oil is 0:06:36.520 --> 0:06:38.760 up one point four percent of a dollar thirteen at 0:06:38.760 --> 0:06:41.800 eighty three dollars cents of barrel Brent is up nine 0:06:41.800 --> 0:06:45.480 ten percent at ninety eight seven cents. Finally, Karen criticism 0:06:45.480 --> 0:06:48.080 of the Pimco Total Return Bond Fund from the man 0:06:48.160 --> 0:06:50.840 who created it. We're talking about Bill Gross, who was 0:06:50.920 --> 0:06:54.800 ousted from Pimco. Gross says many of the funds bearing 0:06:54.800 --> 0:06:56.640 the name are failing to live up to their mission 0:06:56.680 --> 0:06:59.320 after suffering heavy losses this year. He says, instead of 0:06:59.360 --> 0:07:01.640 helping to cush in the market downturn, they've clung to 0:07:01.680 --> 0:07:06.200 their benchmarks too closely, essentially becoming quasi index tracking strategies. 0:07:06.680 --> 0:07:10.160 Futures are gaining some footing here. SMP futures are up 0:07:10.160 --> 0:07:13.520 sixteen points, STOUT futures up eighty, NASTAC futures are higher 0:07:13.560 --> 0:07:16.760 by seventy seven points. Straight ahead your latest local headlines 0:07:16.800 --> 0:07:23.680 and a check of sports. This is Bloomberg. It's six 0:07:23.760 --> 0:07:26.160 o seven on Wall Street, forty two degrees in Central Parks. 0:07:26.240 --> 0:07:29.080 Still got that crashed southbound of Jersey Turnpike, Chuck Lan's 0:07:29.120 --> 0:07:31.360 exit seven. Michael bars here with more on what's going 0:07:31.360 --> 0:07:33.360 on in New York and around the world. Michael, thank 0:07:33.400 --> 0:07:35.480 you very much. Nathan. The midterms of just a few 0:07:35.520 --> 0:07:39.560 weeks away, and now another race that Democrats once thought 0:07:39.720 --> 0:07:43.120 was a slam dunk could be in play. In New York. 0:07:43.160 --> 0:07:47.040 Republican le Zelden is in a statistical dead heat with 0:07:47.200 --> 0:07:51.440 Democratic Governor Kathy Hokel. More from Bloomberg's Denise Pello Greeni, 0:07:51.680 --> 0:07:53.760 Michael it Kind, of all depends on which poll you 0:07:53.760 --> 0:07:56.000 want to believe at this point, because the new Quinnipiac 0:07:56.040 --> 0:07:59.720 Pole shows hopelessly narrowing to just four percentage points, her 0:07:59.760 --> 0:08:03.680 Ken pay noes as this Quinnipiac pole undercounted likely Democratic voters. 0:08:03.840 --> 0:08:07.640 Former President Trump recently endorsed Zelden, and the Quinnipiac Pole 0:08:07.720 --> 0:08:11.520 shows Zelden has a solid lead among independents. The Long 0:08:11.560 --> 0:08:14.640 Island congressman also has gained in a real clear average 0:08:14.640 --> 0:08:17.080 of polls, but Hocal still leads by close to ten 0:08:17.080 --> 0:08:19.960 percentage points in a five thirty eight pole average, and 0:08:20.040 --> 0:08:22.920 recent Sienna and Marist College poles show her ahead by 0:08:22.960 --> 0:08:26.560 even more. Michael Bloomberg's De Niece polla Greeni Georgia with 0:08:26.640 --> 0:08:29.520 several high profile races, has set a record on the 0:08:29.560 --> 0:08:32.679 first day of early in person voting. More than a 0:08:32.760 --> 0:08:36.040 hundred thirty three thousand votes were cast Monday, and eight 0:08:36.240 --> 0:08:39.120 seven percent increase from the first day of early in 0:08:39.200 --> 0:08:43.280 person voting in twenty eighteen. Tens intended to provide temporary 0:08:43.320 --> 0:08:46.480 shelter to migrants, open today in New York City, the 0:08:46.520 --> 0:08:49.240 first of a series of mad Shift centers to house 0:08:49.320 --> 0:08:53.360 and influx of Tens of thousands of Central and South Americans. 0:08:53.640 --> 0:08:57.120 The new relief center, located on Randall's Island, is intended 0:08:57.160 --> 0:09:01.559 to house and provide food, water, medical care, and COVID tests. 0:09:01.760 --> 0:09:05.079 When migrants first arrived in New York. Zach Iskoll is 0:09:05.120 --> 0:09:10.560 the Emergency Management Commissioner. But people get off the bus 0:09:10.600 --> 0:09:13.960 report at thirty but very limited amount of time about 0:09:14.000 --> 0:09:17.120 forty five minutes to the hour where we are figuring 0:09:17.120 --> 0:09:20.200 out what people's immediate medical leaves are. There will be 0:09:20.240 --> 0:09:23.480 a ten pm curfew. Former President Trump is scheduled to 0:09:23.520 --> 0:09:26.360 sit for a deposition and answer questions under oath from 0:09:26.360 --> 0:09:30.400 attorneys for E. Gene Carroll, former columnist at L magazine, 0:09:30.800 --> 0:09:33.760 Carol su Trump for defaming her when he denied her 0:09:33.840 --> 0:09:36.719 rape claim from the ninet nineties. Global News twenty four 0:09:36.760 --> 0:09:39.840 hours a day on air and on Bloomberg Quicktake, powered 0:09:39.880 --> 0:09:42.079 by more than seven hundred journalists analysts more than a 0:09:42.120 --> 0:09:44.600 hundred twenty countries. I'm MICHAELA bar This is Bloomberg, Nathan. 0:09:44.720 --> 0:09:51.480 Thanks Michael six o nine on Wall Street time for 0:09:51.520 --> 0:09:53.320 the Bloomberg Sports that they brought to you by Tri 0:09:53.480 --> 0:09:56.800 State Outie. Here's John Stasha Nathan. The Decisive Game five 0:09:56.840 --> 0:09:58.680 of the A L d S raindown Monday night at 0:09:58.679 --> 0:10:02.360 the Stadium played yesterday after Dude and decided very early on. 0:10:02.440 --> 0:10:06.119 The Guardians made a somewhat surprising decision to start Aaron Savali. 0:10:06.200 --> 0:10:08.760 Yankees had teed off on him twice in the regular season. 0:10:08.760 --> 0:10:11.480 He faced only five batters, got only one out, gave 0:10:11.559 --> 0:10:14.120 up a John Carlos Stanton three run homer. Yanks were 0:10:14.120 --> 0:10:16.280 on their way to a five to one win over Cleveland. 0:10:16.280 --> 0:10:18.800 Aaron Judge also homer, and the Yanks decision to starting 0:10:18.920 --> 0:10:21.920 Esther Cortez on three days rest. That worked well, so 0:10:21.960 --> 0:10:23.920 the Yanks able to come back to the two games 0:10:23.920 --> 0:10:27.040 to one deficit. And now it's onto Houston with Aaron 0:10:27.080 --> 0:10:30.320 Boone's team playing Game one of the ALCS tonight. The 0:10:30.440 --> 0:10:34.120 challenges we're facing a great team, you know. Uh, as 0:10:34.120 --> 0:10:37.360 far as the quick turnaround, we'll be fine. I mean, 0:10:37.360 --> 0:10:41.440 that's that's baseball. We do that all the time. You know, 0:10:41.480 --> 0:10:44.800 we'll walk in there with some confidence. Um, we know, 0:10:45.080 --> 0:10:47.360 we know they're a great team and rested and ready, 0:10:47.400 --> 0:10:50.600 and um we look forward to the challenge. Three times 0:10:50.600 --> 0:10:53.559 the Astros have ended the Yankee season two thousand fifteen 0:10:53.559 --> 0:10:56.000 wild Card game at in the Alcs in both two 0:10:56.000 --> 0:10:59.800 thousand seventeen and the Yante nineteen. Yanks start Jamison tyone tonight. 0:10:59.800 --> 0:11:02.880 I'll the Astros justin Verlander, game one of the NLCS 0:11:02.960 --> 0:11:06.040 and San Diego. Fewest hits ever in a postseason game. 0:11:06.120 --> 0:11:08.360 The Philly has had three, but two were solo Homer's 0:11:08.360 --> 0:11:11.120 padres that only one hit. The Phils want tune up 0:11:11.120 --> 0:11:13.120 there then now six and one in the postseason. Game 0:11:13.200 --> 0:11:16.400 two is today. NBA season underway home wins by Boston 0:11:16.400 --> 0:11:18.400 and Golden State. Nick's open up tonight in Memphis, the 0:11:18.480 --> 0:11:21.320 Nets home for New Orleans. Devils and Islanders both one 0:11:21.400 --> 0:11:24.240 at home. New Jersey's first win was four two over Anaheim. 0:11:24.280 --> 0:11:28.439 The Aisles beat still winless San Jose by John Stansailor 0:11:28.520 --> 0:11:32.200 Bloomberg Sports Loop Okay, John, thanks SMP futures right now 0:11:32.320 --> 0:11:35.040 up sixteen points. Stown futures up a D two Dance 0:11:35.080 --> 0:11:39.000 dec futures are higher by seventy seven points. Tenure treasury 0:11:39.040 --> 0:11:41.840 is down thirteen thirty seconds. The yield four point zero 0:11:41.880 --> 0:11:44.240 six percent held on the two year four point for seven. 0:11:44.559 --> 0:11:46.679 NIMEX cruge moving higher as well, up one and a 0:11:46.720 --> 0:11:49.600 half percent, up a dollar twenty at eighty four oh 0:11:49.600 --> 0:11:53.040 two of barrel Netflix shares surging in the pre market 0:11:53.080 --> 0:11:56.640 of thirteen and two thirds per cent on a subscriber 0:11:56.800 --> 0:11:59.800 gain in the latest quarter. Talk about it next with 0:12:00.000 --> 0:12:07.840 Bloomberg Quick Take correspondent Alex Web. This is Bloomberg. Bloomberg 0:12:07.840 --> 0:12:09.640 Sports is brought to you by Autie. Don't let someone 0:12:09.640 --> 0:12:11.960 else drive off in the outie model you've always wanted. 0:12:12.040 --> 0:12:14.439 Visit your local tri state autie dealer to get behind 0:12:14.480 --> 0:12:16.920 the wheel of yours today, or visit Outie Offers dot 0:12:16.920 --> 0:12:24.600 com for more information, markets, headlines and breaking news twenty 0:12:24.600 --> 0:12:27.439 four hours a day at Bloomberg dot com the Bloomberg 0:12:27.480 --> 0:12:30.400 Business Out and at Bloomberg Quick Take, this is a 0:12:30.440 --> 0:12:39.520 Bloomberg Business lash and I'm terrot Moscow. This update brought 0:12:39.559 --> 0:12:42.360 to you by se I. Imagine your asset management firms 0:12:42.400 --> 0:12:45.800 operational infrastructure is a competitive advantage. Let see I show 0:12:45.840 --> 0:12:48.480 you how at se I C dot Com slash I 0:12:48.840 --> 0:12:51.560 M s U s Dock index futures are rising as 0:12:51.600 --> 0:12:55.240 investors wake concerns about scorching inflation and a looming recession 0:12:55.559 --> 0:12:58.320 against a strong start to the earning season. The pound 0:12:58.360 --> 0:13:01.760 falling after UK inflation roast faster than economists we're looking for. 0:13:02.000 --> 0:13:04.440 We checked the markets every fifteen minutes throughout the trading 0:13:04.480 --> 0:13:06.960 day on bloomberg S and P Future is up fourteen 0:13:07.000 --> 0:13:09.880 points down Future is up sixty one Nasdack Future is 0:13:09.960 --> 0:13:12.600 up seventy two. The decks in Germany's up two tenths 0:13:12.640 --> 0:13:15.800 of a percent. Ten year treasury down thirty and thirty seconds. 0:13:15.800 --> 0:13:17.880 He had four point oh six percent. They yield on 0:13:17.960 --> 0:13:20.880 the two year four point four seven percent. Nine X 0:13:20.920 --> 0:13:22.920 screwed oil is up one at a quarter percent of 0:13:22.960 --> 0:13:25.240 a dollar three at eighty three dollars eighty five cents 0:13:25.240 --> 0:13:27.880 of aarrol COMEXS goal down seven tenths per cent or 0:13:27.880 --> 0:13:30.959 eleven dollars thirty cents at sixteen forty four fifty announce 0:13:31.360 --> 0:13:33.680 The euro point nine eight one two against the dollar 0:13:33.720 --> 0:13:36.080 British found one point one two seven five the end 0:13:36.120 --> 0:13:39.000 one forty nine point four six and bitcoin is down 0:13:39.080 --> 0:13:41.920 six tenths of u percent at nineteen thousand, two hundred 0:13:41.920 --> 0:13:44.960 fifty dollars. That's a Bloomberg business flash. Now here's Muchael 0:13:44.960 --> 0:13:47.560 Barr with more on what's going on around the world. Muchael, 0:13:48.080 --> 0:13:50.839 Thank you very much, Karen, President Biden is opening the 0:13:50.920 --> 0:13:55.119 oil spiket again. President Biden today will announce another strategic 0:13:55.160 --> 0:13:58.120 oil reserve release design to help bring down the price 0:13:58.200 --> 0:14:01.760 of gas. He could release an other fifteen million barrels 0:14:01.760 --> 0:14:06.240 of oil. Ukraine's president says recent Russian air strikes destroyed 0:14:06.280 --> 0:14:09.920 about a third of his country's power facilities, cutting access 0:14:09.920 --> 0:14:14.400 to electricity and water for many as temperatures drop. In baseball, 0:14:14.440 --> 0:14:16.880 the Yankees are getting ready to face the Astros. In 0:14:16.920 --> 0:14:20.240 the a l CS, New York beat the Guardians five 0:14:20.320 --> 0:14:23.080 one to advance. In Game one of the NLCS to 0:14:23.160 --> 0:14:26.080 Philly shut out the Padres to zip. In the opening 0:14:26.160 --> 0:14:29.760 night of the NBA, the Celtics and Warriors one. In hockey, 0:14:29.840 --> 0:14:33.480 the Devils and Islanders won, the Bruins lost. Global news 0:14:33.480 --> 0:14:36.760 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:37.080 --> 0:14:40.120 powered by more than twenty seven hundred journalists and analysts 0:14:40.160 --> 0:14:42.800 more than a hundred twenty countries. I'm Michael Laren. This 0:14:42.960 --> 0:14:45.800 is Bloomberg, Nathan. Thanks Michael. At six nineteen on Wall 0:14:45.840 --> 0:14:48.920 Street Live from the Bloomberg Intracted Brokers studios. This is 0:14:49.040 --> 0:14:52.200 Bloomberg Daybreak. We continue to watch shares of Netflix this morning, 0:14:52.240 --> 0:14:55.680 they're up fourteen percent in the pre market after the 0:14:55.760 --> 0:15:00.880 first subscriber growth number for the streaming giant this year. 0:15:01.240 --> 0:15:03.960 Let's bring back Bloomberg Quick Take correspondent Alex Web for 0:15:04.000 --> 0:15:07.680 more on the Netflix earnings. Two point four million news 0:15:07.680 --> 0:15:11.120 subscribers in the third quarter. Alex, that's not as much 0:15:11.240 --> 0:15:15.680 as Netflix used to enjoy. Is that a problem, Well, 0:15:15.720 --> 0:15:18.160 it's not necessarily, it's there'sertainly a lot more than the 0:15:18.200 --> 0:15:21.440 market was expecting. The you know, they've been anticipating just 0:15:21.480 --> 0:15:23.560 a million subscribers, but yeah, you're quite right that a 0:15:23.640 --> 0:15:26.840 year ago they were adding almost double that, and in 0:15:26.880 --> 0:15:29.720 the December quarter, which is currently forecast to add four 0:15:29.760 --> 0:15:33.480 and a half million subs, a year before it had 0:15:33.480 --> 0:15:36.320 added close to ten million. But you know, it's partly 0:15:36.720 --> 0:15:39.720 a function of how big Netflix already is it still 0:15:39.840 --> 0:15:43.720 it has something like, you know, two million subscribers globally, 0:15:44.400 --> 0:15:46.720 there are fewer new ones out there to find, and 0:15:46.760 --> 0:15:52.720 of course, as as as a strings, household budgets get tightened, 0:15:53.040 --> 0:15:56.200 as less money for the people are willing to spend, 0:15:57.120 --> 0:15:59.720 and so I guess that sort of leans into the 0:15:59.760 --> 0:16:04.000 whole for Netflix that providing this sort of lower price 0:16:04.120 --> 0:16:08.880 point adds supported tier around six month could potentially bring 0:16:08.880 --> 0:16:13.520 in some of those squeezed potential subscribers. Yeah, it sort 0:16:13.520 --> 0:16:16.520 of solves two problems for them that ultimately, if you 0:16:16.560 --> 0:16:23.520 are entirely dependent on subscribers paying subscribers, your own opportunities 0:16:23.520 --> 0:16:27.280 for growth are adding more subscribers or charging the subscribers 0:16:27.280 --> 0:16:31.120 you have more money. Now, this, they hope will add 0:16:31.160 --> 0:16:34.120 more subscribers coming in at the lowest tier, and it 0:16:34.160 --> 0:16:36.960 also might then commence others who are already at the 0:16:36.960 --> 0:16:38.760 lowest tier that it's worth paying a little bit more 0:16:38.840 --> 0:16:43.800 not to get ads. But it equally removes the cap 0:16:43.920 --> 0:16:46.120 on their upside. If you look at a company like Facebook, 0:16:46.120 --> 0:16:50.920 which is an advertising technology company, they have consistently succeeded 0:16:51.000 --> 0:16:54.840 in increasing average revenue per user to extended In the US, 0:16:54.960 --> 0:16:58.920 it's well above two hundred dollars per user per year. Now, 0:16:59.200 --> 0:17:01.960 Netflix m i to only need be charging seven dollars 0:17:02.000 --> 0:17:07.480 for the advertising funded tier, but Hulu makes six dollars 0:17:07.480 --> 0:17:09.760 an additional six dollars fifty in ADS from each of 0:17:09.800 --> 0:17:12.320 those users. If you can keep growing that number because 0:17:12.320 --> 0:17:16.199 you've got a committed audience, Uh, that gives you a 0:17:16.280 --> 0:17:18.320 good story to tell your investors in terms of what 0:17:18.359 --> 0:17:21.520 your potential upside is. It's a pretty big sea change though, 0:17:21.560 --> 0:17:23.760 for Netflix, isn't it. I Mean, they bragged for years 0:17:23.760 --> 0:17:25.720 that they weren't going to go with ad support and 0:17:26.680 --> 0:17:29.240 passwords sharing wasn't going to be an issue as well. 0:17:29.320 --> 0:17:31.479 Now they're cracking down on that as well. I mean, 0:17:31.520 --> 0:17:34.000 what other kinds of changes could we see from Netflix 0:17:34.000 --> 0:17:36.800 to keep this growth story going. I mean, you're right, 0:17:36.920 --> 0:17:38.639 is it is a colossal change. Part of the appeal 0:17:38.640 --> 0:17:41.960 of Netflix for a long time was that, unlike traditional 0:17:42.080 --> 0:17:45.000 linear TV, certainly in in large parts of the world, 0:17:45.119 --> 0:17:48.640 there were no ads, and that's what drove Netflix's growth 0:17:48.640 --> 0:17:51.120 for a long time. I think investors had sort of 0:17:51.160 --> 0:17:54.199 thought that they were getting a high growth utility in 0:17:54.240 --> 0:17:59.000 the sense that everybody who was going to stream TV 0:17:59.560 --> 0:18:02.320 or stream video would pay for Netflix and that was 0:18:02.359 --> 0:18:04.200 the base layer, and on top of that you would 0:18:04.200 --> 0:18:06.800 then add things that attuned your interest at Disney Plus 0:18:07.119 --> 0:18:09.400 or Discovery or whatever it might be. And what we've 0:18:09.400 --> 0:18:10.879 started to see is that is not the case. The 0:18:10.960 --> 0:18:13.640 Netflix is not the default, and then people just add more. 0:18:14.000 --> 0:18:17.320 So um, in terms of further changes, look, I think 0:18:17.320 --> 0:18:21.680 they're concentrating a lot on boosting their presence in geographies 0:18:21.680 --> 0:18:24.719 where they're underpenetrated. If you look at countries like India, 0:18:24.760 --> 0:18:28.280 where they have a basic tier which costs about a 0:18:28.359 --> 0:18:33.480 dollar fifty a month um, that is a because you know, 0:18:33.520 --> 0:18:35.679 there's a huge amount of crisis sensitivity in that market. 0:18:36.160 --> 0:18:38.440 If you look at the company's average revenue pe user 0:18:38.520 --> 0:18:41.680 in Asia, it is still around the ten dollar mark. 0:18:41.800 --> 0:18:43.800 Now what that tells you is that they have very 0:18:43.840 --> 0:18:47.240 few subscribers in India, right because if if the r 0:18:47.320 --> 0:18:49.199 POO is that high, it means very few people are 0:18:49.200 --> 0:18:53.159 coming in at the entry level subscription. So there is 0:18:53.200 --> 0:18:54.879 a huge amount of scope to grow in some of 0:18:54.880 --> 0:18:57.119 these massive markets. They've just got to find the shows, 0:18:57.119 --> 0:18:59.680 and actually they will help them do so. It certainly 0:18:59.720 --> 0:19:02.199 looks as though, at least for the moment, investors like 0:19:02.320 --> 0:19:04.440 the story that Netflix is telling. As we're watching the 0:19:04.480 --> 0:19:06.760 shares in the pre market and they are still moving 0:19:06.840 --> 0:19:11.280 higher by nearly fourteen percent. Alex Webb as always great 0:19:11.320 --> 0:19:13.600 to have you on with us once again. Alex Webb, 0:19:13.960 --> 0:19:17.600 correspondent for Bloomberg Quick Take, whose follows all things tech 0:19:18.240 --> 0:19:21.920 very closely. For us on our own streaming service, Looking 0:19:21.920 --> 0:19:25.280 Ahead to the market open this morning. Futures are starting 0:19:25.280 --> 0:19:28.480 to point a little higher now once again, after two 0:19:28.520 --> 0:19:32.720 straight days of solid gains for the SMP. SMP futures 0:19:32.720 --> 0:19:35.679 are up three tenths percent right now, up eleven points. 0:19:36.040 --> 0:19:39.400 DAL futures up forty four NANSDAC futures are higher by 0:19:39.600 --> 0:19:43.600 sixty five points. That's a gain of six tenths percent ten. 0:19:43.640 --> 0:19:46.720 Your treasury is now down fourteen thirty seconds, yield four 0:19:46.760 --> 0:19:48.920 point zero six percent yield on the two year four 0:19:48.960 --> 0:19:52.280 point for eight. And I'm ex scruge moving higher as well, 0:19:52.359 --> 0:19:54.920 up one point one percent of ninety three cents at 0:19:54.920 --> 0:19:59.479 eighty three dollars seventy five cents a barrel. You're listening 0:19:59.520 --> 0:20:09.719 to Blue Boomberg Daybreak Bloomberg eleven three oh weather, sunny, breezy, 0:20:09.800 --> 0:20:13.720 mid fifties today, lots of sunshine, Tomorrow, upper fifties. We'll 0:20:13.720 --> 0:20:16.760 get into the low sixties once again by Friday. Right 0:20:16.760 --> 0:20:23.600 now forty two in Central Park, broadcasting live from the 0:20:23.720 --> 0:20:27.680 Bloomberg Interactive Broker's studio in New York. Bloomberg e Living 0:20:27.720 --> 0:20:31.359 Free on to Washington, d C. Bloomberg on to Boston. 0:20:31.520 --> 0:20:34.879 Bloomberg one O six one to San Francisco, Bloomberg N 0:20:35.000 --> 0:20:38.240 sixty to the country, Sirius XM Chado one nine and 0:20:38.320 --> 0:20:41.680 around the globe, the Bloomberg Business app and Bloomberg Radio 0:20:41.800 --> 0:20:51.240 dot com. This is Bloomberg Daybreak six thirty on Wall Street. 0:20:51.240 --> 0:20:54.200 Good morning, I'm Nathan Hager and I'm Karen Moscow, and 0:20:54.240 --> 0:20:56.520 we are just about three hours away from the open 0:20:56.520 --> 0:20:58.399 of US trading. Time for the five things that you 0:20:58.480 --> 0:21:00.560 need to notice start your day. Brown to you by 0:21:00.640 --> 0:21:03.920 Interactive Brokers ibk R. Event Trader offers a new way 0:21:03.920 --> 0:21:06.960 to trade futures. Use event contracts to trade your opinion 0:21:06.960 --> 0:21:09.760 on yes or no questions and key CME futures markets. 0:21:10.040 --> 0:21:14.399 Learn more at event trader dot Interactive Brokers dot com. First, 0:21:14.440 --> 0:21:17.000 the S and P five has rallied two straight days 0:21:17.040 --> 0:21:19.439 to start the week. So have we seen a bottom? 0:21:19.480 --> 0:21:23.679 While the Our Shares chief investment strategist Eva Ato says no, 0:21:24.160 --> 0:21:27.760 but rallies like this could continue through December. Hard to 0:21:27.840 --> 0:21:30.080 time the bottom, but I would say we're closer to 0:21:30.160 --> 0:21:32.840 it than not, and I expect to see the market 0:21:33.080 --> 0:21:36.000 and the year higher. We might even see a Christmas 0:21:36.080 --> 0:21:40.160 rally by then. We'll see the Fed getting inflation under control, 0:21:40.359 --> 0:21:43.880 and we exped inflation to drop next year. Eva Atos, 0:21:43.920 --> 0:21:46.800 with the our shares, expects tech and healthcare stocks to 0:21:46.920 --> 0:21:50.200 bounce back as inflation cools. Now. The rising stocks Karen 0:21:50.240 --> 0:21:52.679