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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan

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Speaker 1: Hager and I'm Karen Moscow. Here are the stories we're

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Speaker 1: following today.

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Speaker 2: Karen, we begin with an update on the fighting in

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Speaker 2: the Middle East. Israel has carried out its first airstrike

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Speaker 2: on Central Bay Route in the nearly year long conflict,

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Speaker 2: coming days after Israel's military killed the longtime leader of Hezbola,

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Speaker 2: Hassan Nasrala. David Wood is a senior Lebanon analyst at

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Speaker 2: the International Crisis Group.

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Speaker 3: There's been an increasing sense in Lebanon that this is

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Speaker 3: becoming not just a war between Israel and Hezbalalah, but

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Speaker 3: a war between Israel and Lebanon. And there was an

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Speaker 3: attack at a place called a Cola intersection, which is

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Speaker 3: not in the southern suburbs of Bedutz, which are considered

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Speaker 3: largely a stronghold, shall we say, Hesbala and its supporters,

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Speaker 3: so quite seriously, Lebanese from all different communities and political

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Speaker 3: persuasions used this intersection free in normal times. So it's

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Speaker 3: really another really scary escalation in the conflict and makes

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Speaker 3: people feel that there's increasingly nowhere left that's safe in Lebanon.

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Speaker 4: During this war.

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Speaker 2: That was David Wood's senior Lebanon analyst at the International

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Speaker 2: Crisis Group. In just over a week, intensified Israeli strikes

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Speaker 2: in Lebanon have killed seven high ranking commanders and officials

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Speaker 2: from Hesbalat well Nathan.

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Speaker 1: On the campaign trail, both Kamala Harris and Donald Trump

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Speaker 1: have been putting a focus on immigration. The Vice president

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Speaker 1: held a rally in Las Vegas last night.

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Speaker 5: Earlier this year, we had a chance to pass the

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Speaker 5: toughest bipartisan border security bill in decades, and Donald Trump

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Speaker 5: takes the bill because he thought that that bill it

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Speaker 5: passed would hurt him and he'd prefer to run on

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Speaker 5: a problem instead of fixing a problem.

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Speaker 1: Kamala Harris also told the Vegas crowd she's all in

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Speaker 1: for another debate with Donald Trump, and now the former

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Speaker 1: president says the border is a problem because of Harris.

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Speaker 6: What she's done is a total disqualifier.

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Speaker 4: She should be disqualified.

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Speaker 7: She should resign the vice presidency and go home to California.

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Speaker 6: She is by you know, she's really destroyed it.

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Speaker 1: At a rally in Pennsylvania, Donald Trump also slammed the

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Speaker 1: Vice president for holding fundraisers in California. Over the weekend,

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Speaker 1: Harris raised about fifty five million dollars at events in

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Speaker 1: Los Angeles and San Francisco. Trump attended his own Silicon

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Speaker 1: Valley fundraiser earlier this month and Karen.

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Speaker 2: The vice presidential candidates get the spotlight tomorrow night, when

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Speaker 2: Republican JD. Vance and Democrat Tim Walls meet for their

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Speaker 2: debate hosted by CBS News in New York. Republican Congressman

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Speaker 2: Tom Emmer of Minnesota has been helping Vance prepare to

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Speaker 2: face his home States governor.

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Speaker 6: I've known Tim oh probably since he was first elected

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Speaker 6: almost twenty years ago, and I worked with him directly

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Speaker 6: for four years. I spent the last month just going

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Speaker 6: back all of his old stuff to get his phrases down,

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Speaker 6: his mannerisms, that sort of thing. My job was to

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Speaker 6: be able to play Tim Walls eight evans knows what

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Speaker 6: he's going to see.

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Speaker 2: Minnesota Congressman Tom Emmer was a guest on ABC's This

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Speaker 2: Week Heard Sundays on Bloomberg Radio. For full coverage of

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Speaker 2: the CBS News vice presidential debate, catch the simulcast on

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Speaker 2: a special edition of Bloomberg's Balance of Power that starts

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Speaker 2: tomorrow night at eight pm Wall Street Time on Bloomberg

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Speaker 2: Radio and television.

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Speaker 1: Well Nathan Key, Industry and government officials are urging US

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Speaker 1: DOC workers and their employers to avoid a strike at

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Speaker 1: East and Gulf Coast ports. The US Maritime Alliance, a

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Speaker 1: group representing ocean carriers and poor and terminal operators, and

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Speaker 1: the International Longshoreman's Association have no talks planned before their

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Speaker 1: contract expires at the end of today. President Joe Biden

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Speaker 1: said he would not intervene in any dock workers' strike,

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Speaker 1: he told reporters, resolving the dispute as a matter for

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Speaker 1: collective bargaining.

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Speaker 2: Turning the markets this morning, Karen, it is a huge

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Speaker 2: rally to start the week in Asia. Stocks in China

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Speaker 2: surged eight and a half percent. Three of China's largest

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Speaker 2: cities relaxed rules for home buyers, while the central Bank

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Speaker 2: also moved to lower mortgage rates.

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Speaker 1: Well Nathan, Today marks the final trading session of the

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Speaker 1: third quarter, with equities surviving was traditionally their toughest stretch

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Speaker 1: of the year. We get details from Bloomberg's Charlie Pellett.

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Speaker 8: Investors expect the rally to keep running in October despite

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Speaker 8: a contentious presidential election campaign, shifting federal reserve policy, and

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Speaker 8: fears of a pending recession. The S and P five

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Speaker 8: hundred index had its third straight winning week and is

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Speaker 8: up five point one percent in the third quarter, putting

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Speaker 8: it on track for its best start to a year

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Speaker 8: since nineteen ninety seven, according to data compiled by Bloomberg.

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Speaker 8: It has also pushed the benchmark's market cap above fifty

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Speaker 8: trillion dollars for the first time. And it all happened

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Speaker 8: in September, which historically is the stock market's worst month.

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Speaker 8: In New York.

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Speaker 2: Charlie Bloomberg Radio, Okay, Charlie, thank you. In Europe, it's

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Speaker 2: a tough day for Stillantis. Those shares are down more

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Speaker 2: than twelve percent. The jeep maker has slashed its profit

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Speaker 2: margin forecast for the year and Stillantis plans to dial

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Speaker 2: back production and spend more on promotional incentives in a

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Speaker 2: slowing and more competitive automotive market.

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Speaker 1: And Nathan Ashton Martin shares are down more than twenty

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Speaker 1: two percent. The luxury car maker is lowering its guidance

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Speaker 1: for the year at blame supply chain disruption and we

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Speaker 1: demand in China.

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Speaker 4: Karen, let's turn our attention now to space.

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Speaker 1: Freedom.

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Speaker 2: SpaceX on a big group, so I'll capture.

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Speaker 6: Confirmed Crew nine now board the International Space Station and

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Speaker 6: joining Expedition seventy.

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Speaker 2: Two, SpaceX launched a two person crew to the International

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Speaker 2: Space Station, the start of a mission to bring home

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Speaker 2: two NASA astronauts have been stuck in orbit after flying

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Speaker 2: to the space station on Boeing Starliner spacecraft. NASA astronaut

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Speaker 2: Nick Hag and Russian cosmonaut Alexander Gorbanoff entered the ISS

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Speaker 2: late yesterday, and Hague thanked the team for getting them

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Speaker 2: to the station safely, coming.

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Speaker 9: Through the hatch and seeing all the smiles, and as

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Speaker 9: much as I've laughed and cried in the last ten minutes,

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Speaker 9: I know it's going to be an amazing expedition, so

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Speaker 9: I'm really looking forward to get him to work up here.

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Speaker 4: That was NASA's Nick Haig.

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Speaker 2: The pair had two empty seats next to them that

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Speaker 2: astronauts Butch Wilmore and Sonny Williams are going to fill

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Speaker 2: when the spacecraft returns to Earth next year. The Crew

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Speaker 2: nine flight was meant to have a four person crow,

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Speaker 2: but NASA removed two crew members to make room for

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Speaker 2: the Starliner duo after technical failures with Boeing's spacecraft.

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Speaker 5: Good.

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Speaker 1: It's time now for a look at some of the

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Speaker 1: other stories making news in New York and around the world,

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Speaker 1: and for that we're joined by Bloomberg's Michael Barr Michael

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Speaker 1: good Morning, Good.

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Speaker 10: Morning, Caaren. North Carolina officials are pledging to get more

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Speaker 10: water and other supplies to storm damaged areas after Hurricane

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Speaker 10: Aleen left a trail of destruction across the US Southeast.

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Speaker 10: Authorities have struggle to get supplies to isolated areas, including

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Speaker 10: the city of Ashville. Massive rains brought by Helene left

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Speaker 10: many people stranded or homeless around the region. The death

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Speaker 10: toll from the storm topped ninety people across several states.

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Speaker 10: Many local officials, like Buncombe County Manager Avril Pinder, say

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Speaker 10: that they're doing what they can to get help where

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Speaker 10: it's needed in their community.

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Speaker 4: We need food and we need water.

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Speaker 11: My staff has been making every request possible to the

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Speaker 11: state for support, and we've been working with every single

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Speaker 11: organization that has reached out.

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Speaker 10: Millions remain without lights from Florida to Indiana. Duke Energy

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Speaker 10: spokesman Bill Norton says restoring power will be a multi

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Speaker 10: day project.

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Speaker 8: We're going to have entire substations that were underwater need

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Speaker 8: to be repaired, some cases fully rebuilt.

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Speaker 10: Mean while forecasters say a new tropical depression in the

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Speaker 10: Eastern Atlantic Ocean could become a hurricane by midweek. New

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Speaker 10: York City Mayor Eric Adams spent the weekend visiting churches

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Speaker 10: as the ongoing criminal case against them canes. Adams received

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Speaker 10: a standing ovation and a bronx church Sunday. However, calls

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Speaker 10: for Adams to resign grow louder. On Friday, he surrendered

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Speaker 10: to authorities and was slapped with a five count indictment.

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Speaker 10: He stands accused of bribery, wire fraud, and accepting the

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Speaker 10: legal campaign donations. However, Adams told ABC seventh Sunday he

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Speaker 10: is not resigning.

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Speaker 12: While the attorney's handed the due process, I'm going to

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Speaker 12: handle the management of this city.

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Speaker 10: The mayor's enter circle is employing his police commissioner, health commissioner,

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Speaker 10: and school's chancellor have all stepped down or will soon.

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Speaker 10: He was a Rhodes scholar who became a superstar. Songwriter, singer,

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Speaker 10: and actor. Chris Christopherson has died. Christofferson has a gritty

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Speaker 10: realism to country music with compositions like Sunday Morning, Come

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Speaker 10: Down and Me and Bobby McGee and this one help

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Speaker 10: me make it through the night.

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Speaker 4: Taper ribbon from your hair.

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Speaker 10: As in Actually he was a leading man opposite Barbara

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Speaker 10: streisand and a star is born. A family spokeswoman says

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Speaker 10: Christofferson died at his home in Hawaii at age eight eight.

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Speaker 10: Global News twenty four hours a day and whenever you

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Speaker 10: want it with the Bloomberg News.

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Speaker 8: Now.

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Speaker 10: I'm Michael Barr. This is Bloomberg. Karen.

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Speaker 1: All right, Michael Barr, thank you time now for the

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Speaker 1: Bloomberg Sports Update, brought to you by Tri State Audie.

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Speaker 1: And for that we bring in John stash Hour.

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Speaker 4: John, good morning, Good morning, Karen.

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Speaker 12: Aaron Rodgers, approaching his forty first birthday, worked his way

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Speaker 12: back to the torn Achilles. Yesterday may have been a

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Speaker 12: day where he was thinking the retirement would have been

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Speaker 12: a good option. Had to play in the rain, got

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Speaker 12: sacked five times, hit fourteen times. Rogers couldn't get his

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Speaker 12: jets into the end zonly had thirteen penalties.

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Speaker 4: They lost to Denver ten to nine.

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Speaker 12: The game end with a missed fifty yard field goal

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Speaker 12: by Greg Zerwine.

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Speaker 4: The Jets coach Robert Sala sloppy, a.

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Speaker 7: Lot of preestut penalties. You know, they're already a good defense,

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Speaker 7: and we made it. We made it easier for him

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Speaker 7: with just a lack of execution. We had opportunities for

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Speaker 7: some goal from the one. We've got to be able

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Speaker 7: to put it in. Didn't. Had the ball twice with

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Speaker 7: a chance to win, didn't.

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Speaker 4: Jets now two and two.

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Speaker 12: They played next Sunday in London against Minnesota, who's four

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Speaker 12: and OH, led by the ex Jet Sam Darnold. Vikings

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Speaker 12: had a four touchdown lead at green Bay ended up

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Speaker 12: winning by two points. Buffalo last night was looking to

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Speaker 12: go to four and OH lost in Baltimore thirty five

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Speaker 12: to ten. The Patriots lost thirty to thirteen at San Francisco.

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Speaker 12: The Commanders impressive winning at Arizona forty two to fourteen.

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Speaker 12: The Mets are in Atlanta, but this afternoons regular season

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Speaker 12: ending doublehead are both teams in the same situation. Win

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Speaker 12: one game today and they're in the playoffs if a

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Speaker 12: team loses, both Arizona gets in. Mets won five nothing

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Speaker 12: in Milwaukee behind David Peterson. The Yankees finished with a

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Speaker 12: six to four win over Pittsburgh. The Yanks of the

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Speaker 12: ALS one seed. They'll start the postseason Saturday in the

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Speaker 12: Bronx against either Baltimore or Kansas City. There hasn't been

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Speaker 12: a triple crown winner. In the Ash Relations nineteen thirty

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Speaker 12: seven show, Hey Otani came closed, so Toani ended up

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Speaker 12: with fifty four home runs fifty nine stolen bases. In Brooklyn,

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Speaker 12: the Liberty won Game one of their playoff series with

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Speaker 12: Las Vegas. Breonna Stewart scored thirty four points. In Montreal,

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Speaker 12: the US won the President's Cup Golf with a tenth

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Speaker 12: time in a row.

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Speaker 4: Johns stash Allurer Bloomberg Sports, Karen.

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Speaker 12: And Nathan.

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Speaker 10: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 10: and around the world on Bloomberg dot Com and the

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Speaker 10: Bloomberg Business app.

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Speaker 4: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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Speaker 2: Investors are getting ready to close out the third quarter

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Speaker 2: with tensions in the Middle East and along Eastern Gulf

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Speaker 2: Coast ports top of mind. So what should be top

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Speaker 2: of mind for you as we get set for the

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Speaker 2: final quarter of twenty twenty four. Let's bring in Lori

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Speaker 2: Calvcina for a look at this market, Head of US

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Speaker 2: Equity Strategy at RBC Capital Markets with us in our

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Speaker 2: Bloomberg Interactive Brookers Studios this.

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Speaker 4: Morning, LORI, good morning.

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Speaker 8: Uh.

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Speaker 2: We look at futures giving back just a little bit

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Speaker 2: this morning, but despite all the risks, I just pointed

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Speaker 2: out S and P five hundreds poist to end this

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Speaker 2: quarter up five percent, but this headline risk cloud the outlook.

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Speaker 11: Well, thanks for having me as always, Nathan. Look, I

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Speaker 11: think if you look at you know, indicators like the VIX,

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Speaker 11: like the t DEX, they are starting to creep up

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Speaker 11: a little bit. So we don't think the market is

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Speaker 11: being too complacent about the risks that are growing. But

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Speaker 11: one of the things I find myself saying to investors

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Speaker 11: recently is we can't live in the tails when we're

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Speaker 11: thinking about our equity market outlook going forward. And I

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Speaker 11: think that's a lesson we've all had to really learn

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Speaker 11: in recent years that the market does look at these things.

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Speaker 11: They do, you know, price them in in their own ways,

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Speaker 11: often with positioning trades underneath the surface. But if you

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Speaker 11: put those sort of tail risks aside, the reasonably you know,

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Speaker 11: sort of thinking about a good economy next year, inflation

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Speaker 11: continuing to moderate, earning's growth continuing to be strong. That's

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Speaker 11: supportive of all PE multiples, and additional you know, gains

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Speaker 11: in the equity market next year. So I think it's

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Speaker 11: right for markets to be watching these things out of

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Speaker 11: the side of its eyes, but not overly reacting in

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Speaker 11: the moment.

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Speaker 2: So what should investors be focusing on most as we

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Speaker 2: head into this fourth quarter?

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Speaker 11: So I think earning season is going to be pivotal,

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Speaker 11: and it's interesting we've already started to get some questions there.

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Speaker 11: I really think that investors are going to be looking

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Speaker 11: for companies to get a sense of where corporate confidence

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Speaker 11: levels are and the feedback loop into the labor market.

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Speaker 11: I think that we're still, unfortunately just debating whether or

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Speaker 11: not the economy is going to sort of tip into

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Speaker 11: something more difficult. There's still a lot of concerns about

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Speaker 11: the labor market. I think that the FED cuts, it's

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Speaker 11: really important to have those underway. But at the same time,

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Speaker 11: people are continuing to talk about the long and variable lags.

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Speaker 11: So I think that companies are really going to be

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Speaker 11: in focus and what they're saying about their own confidence levels,

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Speaker 11: what they're doing on Capex and what they're doing in

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Speaker 11: regards to the labor market. I think that's going to

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Speaker 11: be crucial in coming weeks.

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Speaker 2: In terms of what you're hearing from corporate so far.

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Speaker 2: What do they want to see from the FED? Are

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Speaker 2: they looking for low and steady? Are they looking for

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Speaker 2: the FED to deliver something bigger?

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Speaker 11: I don't know that I'm getting a clear sense of,

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Speaker 11: you know, companies wanting big cuts. I think it was

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Speaker 11: important just to get the cuts started and to understand

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Speaker 11: what the direction of travel is. I think there is

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Speaker 11: a sense that it's going to take some time to

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Speaker 11: really see the cuts work their way into the system.

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Speaker 11: So obviously, you know, I think maybe bigger cuts, you know,

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Speaker 11: maybe you reduce the amount of time that's needed. But

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Speaker 11: it's funny because I have actually, you know, sort of

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Speaker 11: been poking, you know, with certain individuals and companies on

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Speaker 11: this question. You know, what is really what what are

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Speaker 11: you looking for? Right, whether it's regarding interest rates, whether

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Speaker 11: it's regarding the election. I think it was just the

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Speaker 11: need to get the cuts underway, and I think it's

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Speaker 11: the passage of the election itself that people want to see.

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Speaker 2: Yeah, I do want to ask you about the election

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Speaker 2: as well. There's so much uncertainty surrounding that such a

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Speaker 2: tight race does it make it difficult not just for

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Speaker 2: you as equity strategist, but for these companies to game

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Speaker 2: out how things could go depending on who wins the race.

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Speaker 4: Got about a minute last.

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Speaker 11: Yes and no. Look, I think that companies, you know,

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Speaker 11: there's a sense of they want to know what the

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Speaker 11: lay of the land is and they want to know

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Speaker 11: what they're dealing with. But the reality is that if

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Speaker 11: you look at how equity markets perform under either a

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Speaker 11: Republican sweep or a Democratic president with a split Congress,

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Speaker 11: those are the two best historical scenarios for the stock

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Speaker 11: market in the past. So, you know, I'm not getting

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Speaker 11: a clear sense of you know, polic aaa policy. B.

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Speaker 11: I do think tax policy is in focus, but I

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Speaker 11: really do again, just think it's wanting to know what

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Speaker 11: we're dealing with.

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Speaker 4: And I'm Nathan Hager.

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