1 00:00:03,360 --> 00:00:06,600 Speaker 1: Live from the Bloomberg Interacted Brooker Studios. This is Bloomberg 2 00:00:06,680 --> 00:00:10,800 Speaker 1: day Break for Tuesday, October eighteen two. Coming up this shour, 3 00:00:11,160 --> 00:00:15,480 Speaker 1: Stocks extend yesterday's rally on Wall Street. Golman Sachs wraps 4 00:00:15,600 --> 00:00:19,160 Speaker 1: up bank earnings. Liz Trust apologizes but bounced to stay 5 00:00:19,160 --> 00:00:21,759 Speaker 1: on as UK Prime Minister, and the White House could 6 00:00:21,760 --> 00:00:25,440 Speaker 1: release more oil from its emergency stockpile. He was debate 7 00:00:25,560 --> 00:00:28,560 Speaker 1: night in several key races. Plus a new policy from 8 00:00:28,560 --> 00:00:31,200 Speaker 1: the New York Sanitation Department is making the rats say, 9 00:00:31,360 --> 00:00:34,840 Speaker 1: Oh rats, I'm Michael Barr Morris. Right ahead, I'm John 10 00:00:34,880 --> 00:00:37,480 Speaker 1: stashowards forth. The Yankees and Guardians were rained out. They'll 11 00:00:37,479 --> 00:00:40,000 Speaker 1: play Game five at four o'clock today. The Rangers beat 12 00:00:40,000 --> 00:00:45,280 Speaker 1: the Ducks. The Chargers beat the Broncos. That's All's train 13 00:00:45,360 --> 00:00:48,720 Speaker 1: ahead on Bloomberg day Break on Bloomberg e Living Free 14 00:00:48,720 --> 00:00:52,960 Speaker 1: on New York, Bloomberg nine one, Washington d C, Bloomberg 15 00:00:53,040 --> 00:00:56,720 Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco 16 00:00:57,200 --> 00:01:00,000 Speaker 1: Sirius x M one nine Team and around the world 17 00:01:00,000 --> 00:01:03,080 Speaker 1: Old on Bloomberg Radio dot Com and via the Bloomberg 18 00:01:03,120 --> 00:01:10,400 Speaker 1: Business app. And good Morning, I'm Karen Moscow. I'm Nathan Hagar. 19 00:01:10,400 --> 00:01:13,000 Speaker 1: Bloomberg Daybreak is brought to you by se I. Imagine 20 00:01:13,000 --> 00:01:16,760 Speaker 1: your asset management firms operational infrastructure as a competitive advantage. 21 00:01:16,840 --> 00:01:18,840 Speaker 1: Let se I show you how at se I C 22 00:01:19,040 --> 00:01:22,520 Speaker 1: dot com slash I M, s U S futures are 23 00:01:22,640 --> 00:01:25,160 Speaker 1: higher this morning. It is five oh one on Wall Street, 24 00:01:25,160 --> 00:01:27,360 Speaker 1: and we check the markets every fifteen minutes throughout the 25 00:01:27,400 --> 00:01:30,480 Speaker 1: trading day. On Bloomberg. Right now, SNP futures are up 26 00:01:30,520 --> 00:01:33,640 Speaker 1: forty points, DWAL future is up two hundred sixty one 27 00:01:33,720 --> 00:01:37,600 Speaker 1: and nasday futures have one four ten year treasury down 28 00:01:37,640 --> 00:01:40,840 Speaker 1: five thirties seconds, the yield four point zero three percent, 29 00:01:41,160 --> 00:01:43,960 Speaker 1: yield on the two year four point four six percent, 30 00:01:44,280 --> 00:01:46,640 Speaker 1: and Nimax screwed oil is down six tenths of a 31 00:01:46,800 --> 00:01:50,080 Speaker 1: percent Nathan Well Karen. The rise in futures follows yesterday's 32 00:01:50,120 --> 00:01:53,080 Speaker 1: powerful rally on Wall Street. The SMP five hundred game 33 00:01:53,120 --> 00:01:56,240 Speaker 1: two point seven percent, while the tech heavy nasdacs surged 34 00:01:56,320 --> 00:02:00,360 Speaker 1: three point four percent. David Deet's senior investment strategistic Pepack 35 00:02:00,400 --> 00:02:02,400 Speaker 1: Private Wealth says it was only a matter of time 36 00:02:02,440 --> 00:02:05,440 Speaker 1: for a bounce. We don't know whether we've seen the 37 00:02:05,480 --> 00:02:08,360 Speaker 1: bottom in the sixecal downturn. But we do know that 38 00:02:08,400 --> 00:02:12,639 Speaker 1: the conditions are primed for better returns going forward. I mean, 39 00:02:12,680 --> 00:02:15,560 Speaker 1: we start with the fact that we're down twenty year 40 00:02:15,600 --> 00:02:19,880 Speaker 1: to date on the broad market. On the NaSTA, that 41 00:02:20,000 --> 00:02:24,000 Speaker 1: alone should with the appetite of all bargain hunters. David 42 00:02:24,080 --> 00:02:26,320 Speaker 1: Deets of Pepack Private Wealth notes the S and P 43 00:02:26,520 --> 00:02:30,440 Speaker 1: closed above a key technical support level yesterday. Still, Nathan 44 00:02:30,560 --> 00:02:33,040 Speaker 1: stocks have further room to fall, as according to the 45 00:02:33,080 --> 00:02:36,360 Speaker 1: latest fund managers survey from Bank of America, the respondents 46 00:02:36,360 --> 00:02:38,839 Speaker 1: expect stocks to bottom in the first half of next 47 00:02:38,919 --> 00:02:42,200 Speaker 1: year after the FED finally pivots away from hiking rates. 48 00:02:42,600 --> 00:02:45,280 Speaker 1: Right now, according to the survey, investors have six point 49 00:02:45,320 --> 00:02:48,360 Speaker 1: three percent of their portfolios in cash. That's the highest 50 00:02:48,400 --> 00:02:52,600 Speaker 1: level since April of two thousand. One of participants are 51 00:02:52,720 --> 00:02:56,600 Speaker 1: underweight equities in Europe. Today, Karen, we're hearing from Liz Trust, 52 00:02:56,720 --> 00:02:59,600 Speaker 1: the UK Prime Minister, says she's sorry for going too far, 53 00:02:59,720 --> 00:03:02,480 Speaker 1: too fast, after her new chancellor gutted most of her 54 00:03:02,480 --> 00:03:07,240 Speaker 1: economic plan. We have made mistakes. I'm sorry for those mistakes, 55 00:03:08,000 --> 00:03:12,480 Speaker 1: but I fixed mistakes. I've appointed a new chancellor. We 56 00:03:12,560 --> 00:03:17,040 Speaker 1: have restored economic stability and fiscal discipline. What I now 57 00:03:17,080 --> 00:03:19,680 Speaker 1: want to do is go want to deliver for the public. 58 00:03:20,120 --> 00:03:22,480 Speaker 1: Prime Minister List Trust made the comments in an interview 59 00:03:22,480 --> 00:03:25,359 Speaker 1: with the BBC. One other note this morning, the Financial 60 00:03:25,440 --> 00:03:28,040 Speaker 1: Times is reporting the Bank of England will likely delay 61 00:03:28,120 --> 00:03:31,040 Speaker 1: its planned sale of government bonds on October thirty one, 62 00:03:31,440 --> 00:03:34,040 Speaker 1: but the Bank of England is refuting that report. Well 63 00:03:34,040 --> 00:03:36,640 Speaker 1: back here in the US, Nathan, we wrap up earnings 64 00:03:36,640 --> 00:03:39,400 Speaker 1: from the big banks today with Goldman Sachs reporting this 65 00:03:39,440 --> 00:03:43,160 Speaker 1: morning and here the preview is Bloomberg's Jeff Belinger. Goldman's 66 00:03:43,160 --> 00:03:46,200 Speaker 1: revenue and profit were boosted by investment games in the 67 00:03:46,280 --> 00:03:49,840 Speaker 1: third quarter last year. Bloomberg Intelligence expects to hear that 68 00:03:49,880 --> 00:03:52,680 Speaker 1: the numbers were lower in the just ended quarter, which 69 00:03:52,720 --> 00:03:55,560 Speaker 1: saw a slide and banking fees and a stock market 70 00:03:55,600 --> 00:03:59,840 Speaker 1: performance that likely weighed on its asset management business. Investors 71 00:03:59,840 --> 00:04:02,360 Speaker 1: will be interested in what executives have to say about 72 00:04:02,360 --> 00:04:06,080 Speaker 1: the future. Bloomberg reported last month that Goldman was beginning 73 00:04:06,120 --> 00:04:08,520 Speaker 1: the biggest round of job cuts since the start of 74 00:04:08,560 --> 00:04:12,520 Speaker 1: the pandemic, and just yesterday Wells Fargo analyst Mike Mayo 75 00:04:12,640 --> 00:04:17,760 Speaker 1: said Goldman is planning a major reorganization. Jeff Bullinger, Bloomberg Daybreak, 76 00:04:17,800 --> 00:04:20,240 Speaker 1: All Right, Jeff Banks. Goldman's earnings come a day after 77 00:04:20,279 --> 00:04:23,800 Speaker 1: Bank of America reported its highest quarterly net interest income 78 00:04:23,839 --> 00:04:26,160 Speaker 1: in at least a decade. We caught up with CEO 79 00:04:26,240 --> 00:04:29,599 Speaker 1: Brian moynihan. He says, the U. S. Consumer is still spending. 80 00:04:30,120 --> 00:04:32,800 Speaker 1: Their credit quality and a credit quality Bank of America 81 00:04:32,960 --> 00:04:35,800 Speaker 1: in our consumer books is very strong across the board. 82 00:04:36,120 --> 00:04:38,960 Speaker 1: The payment that delinquencies are much slower. They weren't pay 83 00:04:39,000 --> 00:04:41,680 Speaker 1: pandemic much lower they were in any average five best 84 00:04:41,760 --> 00:04:44,440 Speaker 1: year type period. And yes they moved a little bit 85 00:04:44,480 --> 00:04:46,400 Speaker 1: off the floor, but they're still much lower and they've 86 00:04:46,400 --> 00:04:50,080 Speaker 1: been so Consumers are spending. They have money, they're employed, 87 00:04:50,080 --> 00:04:53,159 Speaker 1: you can see the unemployment numbers, and they have good credit. 88 00:04:53,440 --> 00:04:56,080 Speaker 1: Bank of America CEO Brian moynihan made the comments in 89 00:04:56,120 --> 00:04:58,760 Speaker 1: an interview with Bloomberg's David Weston. Stay tuned for more 90 00:04:58,800 --> 00:05:02,520 Speaker 1: of that conversation coming shortly on Bloomberg day Break. Meantime, Nathan, 91 00:05:02,560 --> 00:05:05,880 Speaker 1: we're seeing many companies try to diversify their leadership ranks, 92 00:05:06,000 --> 00:05:08,640 Speaker 1: but that effort could be getting harder as women leave 93 00:05:08,680 --> 00:05:11,680 Speaker 1: top tier jobs at higher rates than ever before. A 94 00:05:11,800 --> 00:05:14,919 Speaker 1: report from Mackenzie and Lenan dot Org finds that for 95 00:05:15,000 --> 00:05:17,800 Speaker 1: every woman who gets promoted at the director level, two 96 00:05:17,839 --> 00:05:20,960 Speaker 1: women choose to leave. A lack of affordable childcare as 97 00:05:21,040 --> 00:05:23,760 Speaker 1: part of the reason. Also, a gender pay gap that 98 00:05:23,800 --> 00:05:28,559 Speaker 1: had been narrowing before the pandemic is now stalling started Washington, Now, Karen, 99 00:05:28,600 --> 00:05:31,600 Speaker 1: the White House is watching energy prices closely, and now 100 00:05:31,600 --> 00:05:34,359 Speaker 1: we're told the Biden administrations making moves to ensure the 101 00:05:34,400 --> 00:05:37,680 Speaker 1: price of gas doesn't go even higher. Amy Morris has 102 00:05:37,720 --> 00:05:41,159 Speaker 1: details from our Bloomberg ninety one newsroom in Washington. Energy 103 00:05:41,200 --> 00:05:43,919 Speaker 1: Department officials have been quietly meeting this week with oil 104 00:05:43,960 --> 00:05:46,839 Speaker 1: companies to let them know what to expect. Sources tell 105 00:05:46,839 --> 00:05:49,799 Speaker 1: Bloomberg News officials are prepared to release up to fifteen 106 00:05:49,839 --> 00:05:52,800 Speaker 1: million barrels of oil from the nation's emergency stockpile to 107 00:05:52,880 --> 00:05:55,920 Speaker 1: keep prices steady. We also expect to hear plans from 108 00:05:55,920 --> 00:05:59,920 Speaker 1: the Biden administration this week about how to replenish that stockpile. Also, 109 00:06:00,000 --> 00:06:02,960 Speaker 1: of the administration is looking at limiting fuel exports to 110 00:06:03,040 --> 00:06:06,000 Speaker 1: keep more gasoline and diesel inside the US, a more 111 00:06:06,120 --> 00:06:09,000 Speaker 1: dramatic step that sources say would not happen before the 112 00:06:09,000 --> 00:06:12,680 Speaker 1: midterms in Washington. I'm maybe more as Bloomberg Daybreak. All right, Amy, 113 00:06:12,720 --> 00:06:15,000 Speaker 1: thank you, and I'm the geo political stage this morning. 114 00:06:15,080 --> 00:06:18,000 Speaker 1: China and Taiwan are in focus the US as Beijing 115 00:06:18,080 --> 00:06:20,880 Speaker 1: could move to seize Taiwan on a much faster timeline 116 00:06:20,880 --> 00:06:24,880 Speaker 1: than previously thought. Bloomberg's and Baxter has that story. Secretary 117 00:06:24,880 --> 00:06:27,799 Speaker 1: of State Anthony Blincoln is responding to Shi Jumping's addressed 118 00:06:27,800 --> 00:06:30,440 Speaker 1: to the People's Congress over the weekend. B Lincoln says 119 00:06:30,440 --> 00:06:32,680 Speaker 1: there's been a change in the approach over the past 120 00:06:32,720 --> 00:06:36,000 Speaker 1: several years towards Taiwan, but says now China has made 121 00:06:36,040 --> 00:06:39,880 Speaker 1: a fundamental decision that the status quo is no longer 122 00:06:40,000 --> 00:06:44,880 Speaker 1: acceptable and that Beijing is determined to pursue reunification on 123 00:06:44,920 --> 00:06:49,200 Speaker 1: a much faster timeline. Having said that, Lincoln says there's 124 00:06:49,240 --> 00:06:53,000 Speaker 1: eagerness to cooperate on share interest given that she will 125 00:06:53,000 --> 00:06:55,920 Speaker 1: be serving a third term in San Francisco. I'm at 126 00:06:55,920 --> 00:06:58,880 Speaker 1: Baxter Bloomberg Daybreak, Thanks, ad s andp feature is now 127 00:06:58,880 --> 00:07:02,120 Speaker 1: a forty one point staff futures up two eighty Nastack 128 00:07:02,160 --> 00:07:04,839 Speaker 1: futures are higher by a hundred forty six points Tenure 129 00:07:04,880 --> 00:07:08,599 Speaker 1: Treasury is down six thirty seconds, yield four point zero 130 00:07:08,680 --> 00:07:12,440 Speaker 1: three percent, and Nimex crude is down six tenths percent 131 00:07:12,480 --> 00:07:16,000 Speaker 1: at eighty fours of barrel. Straight ahead, your latest local 132 00:07:16,000 --> 00:07:23,440 Speaker 1: headlines and a check off sports. This is Sploomberg five 133 00:07:23,440 --> 00:07:25,960 Speaker 1: oh seven on Wall Street, fifty one degrees in Central 134 00:07:26,000 --> 00:07:28,240 Speaker 1: Park on an accident on the way to JFK Airports 135 00:07:28,240 --> 00:07:32,040 Speaker 1: southbound Van Wick at Liberty Avenue. Details coming up in traffic. 136 00:07:32,080 --> 00:07:34,320 Speaker 1: First Michael Barr with more on what's going on in 137 00:07:34,360 --> 00:07:36,520 Speaker 1: New York and around the world. Good morning, Michael, Good 138 00:07:36,520 --> 00:07:39,680 Speaker 1: morning Nathan. New York City announced a new policy meant 139 00:07:39,720 --> 00:07:42,960 Speaker 1: to keep the streets cleaner and free of rats. With 140 00:07:43,080 --> 00:07:45,640 Speaker 1: trash bags filed on the curves at night. There are 141 00:07:45,680 --> 00:07:48,000 Speaker 1: new rules on when you can take out the garbage. 142 00:07:48,280 --> 00:07:52,000 Speaker 1: Sanitation to Mission of Jessica Tish, the biggest swing that 143 00:07:52,040 --> 00:07:54,920 Speaker 1: you can take at cleaning up our streets is to 144 00:07:55,040 --> 00:07:58,600 Speaker 1: shut down the all night, all you can eat rat buffet. 145 00:07:59,520 --> 00:08:03,480 Speaker 1: I wanted be clear the rats are absolutely going to 146 00:08:03,560 --> 00:08:07,720 Speaker 1: hate this announcement. Sanitation Commissioner Tish said buildings can put 147 00:08:07,760 --> 00:08:11,040 Speaker 1: their trash out no earlier than ANPM and there will 148 00:08:11,080 --> 00:08:15,560 Speaker 1: be more collections. Overnight, New York City arts organizations, including 149 00:08:15,560 --> 00:08:19,600 Speaker 1: the Metropolitan Opera, the New York Philharmonic, New York City Valet, 150 00:08:19,680 --> 00:08:22,360 Speaker 1: and Carnegie Hall announced that they will make face masked 151 00:08:22,440 --> 00:08:27,080 Speaker 1: optional beginning octobery as COVID nineteen cases continue to decline 152 00:08:27,200 --> 00:08:30,120 Speaker 1: across the area. The group at it that it will 153 00:08:30,160 --> 00:08:35,680 Speaker 1: continue to encourage the practice of masking and also of vaccinations, 154 00:08:35,720 --> 00:08:39,200 Speaker 1: which will remain optional as well. Georgia Governor Brian Kemp 155 00:08:39,200 --> 00:08:43,760 Speaker 1: face Democratic challengers Stacy Abrams and Libertarian candidate Shane hazel 156 00:08:43,840 --> 00:08:47,559 Speaker 1: Ford televised debate sponsored by the Atlanta Press Club. Abrams, 157 00:08:47,559 --> 00:08:50,400 Speaker 1: speaking last night as governor, I intend to stand up 158 00:08:50,400 --> 00:08:52,240 Speaker 1: for the right to vote. I will always acknowledge the 159 00:08:52,240 --> 00:08:55,000 Speaker 1: outcome of elections, but I will never deny access to 160 00:08:55,160 --> 00:08:57,960 Speaker 1: every voter, because that is the responsibility of every American 161 00:08:58,160 --> 00:09:01,160 Speaker 1: to defend the right to vote. Kemp responded to Abraham's 162 00:09:01,200 --> 00:09:04,640 Speaker 1: accusations of voter suppression during his time as governor. I'm 163 00:09:04,679 --> 00:09:08,640 Speaker 1: the person that created the online voter registration system in 164 00:09:08,720 --> 00:09:12,760 Speaker 1: the state where any Georgian convert registered of twenty four 165 00:09:12,760 --> 00:09:15,719 Speaker 1: hours a day, seven days a week. Abraham's lost to 166 00:09:15,840 --> 00:09:18,080 Speaker 1: Kemp when they first ran against each other in the 167 00:09:18,080 --> 00:09:21,800 Speaker 1: twenty eighteen race for governor. Democratic Representative Tim Ryan and 168 00:09:21,920 --> 00:09:24,599 Speaker 1: Republican J. D. Vans meant for their second debate to 169 00:09:24,679 --> 00:09:28,559 Speaker 1: replace the tiring O Iisle Republican Senator Rob Portman on 170 00:09:28,800 --> 00:09:33,440 Speaker 1: NBCs w F m JTV. Vans accused Ryan voting for 171 00:09:33,520 --> 00:09:37,120 Speaker 1: tax increases and criticized his support for the Inflation Reduction Act. 172 00:09:37,360 --> 00:09:40,959 Speaker 1: It raises taxes by twenty billion dollars on working people 173 00:09:41,000 --> 00:09:42,920 Speaker 1: in this state and in this country, and then at 174 00:09:42,920 --> 00:09:45,720 Speaker 1: six seven thousand, i R s agents to go after them. 175 00:09:45,920 --> 00:09:49,559 Speaker 1: Ryan replied, Vance is accusing him of being a follower 176 00:09:49,640 --> 00:09:53,000 Speaker 1: of how speaker Nancy Pelosi. You keep talking about Nancy Pelosi. 177 00:09:53,760 --> 00:09:55,959 Speaker 1: If you want to run against Nancy Pelosi, moved back 178 00:09:56,000 --> 00:09:58,800 Speaker 1: to San Francisco and run against Nancy Pelosi. You're running 179 00:09:58,800 --> 00:10:01,559 Speaker 1: against me. Poll shilled race as a tie. Global News 180 00:10:01,600 --> 00:10:03,800 Speaker 1: twenty four hours a day on air and on Bloomberg 181 00:10:03,840 --> 00:10:05,760 Speaker 1: Quick Take Power about more than the twenty seven hundred 182 00:10:05,800 --> 00:10:08,720 Speaker 1: journalists analysts more than a twenty countries. I'm MICHAELA bar 183 00:10:08,840 --> 00:10:15,880 Speaker 1: This is Bloomberg Nake. Thank you. Michael five ten on 184 00:10:15,880 --> 00:10:18,200 Speaker 1: Wall Street Time for the Bloomberg Sports up taking morning 185 00:10:18,280 --> 00:10:20,520 Speaker 1: John stash Our Alright and Morney Nathren. Second time in 186 00:10:20,520 --> 00:10:22,959 Speaker 1: this series where the Yankees and Guardians have been reigned 187 00:10:23,000 --> 00:10:24,880 Speaker 1: out of the stadium, unlike last week when the game 188 00:10:24,920 --> 00:10:27,040 Speaker 1: was called early in the afternoon. The fans were there 189 00:10:27,120 --> 00:10:29,400 Speaker 1: last night, but at nine thirty they called it. So 190 00:10:29,559 --> 00:10:32,240 Speaker 1: Game five is at four o'clock today, and with the 191 00:10:32,320 --> 00:10:35,240 Speaker 1: day off, the Yankees are changing starting pictures. Out is 192 00:10:35,320 --> 00:10:38,480 Speaker 1: Jamison Tyon in his Nestor Cortez on three days rest. 193 00:10:38,480 --> 00:10:41,640 Speaker 1: The Guardians could do likewise with Shane Bieber, he was 194 00:10:41,679 --> 00:10:43,400 Speaker 1: the cy young one or two years ago, but they 195 00:10:43,480 --> 00:10:47,000 Speaker 1: say they are sticking with Aaron Savale. Winner today after 196 00:10:47,080 --> 00:10:50,199 Speaker 1: Houston for Game one of the Alcs tomorrow. The surprising 197 00:10:50,440 --> 00:10:54,199 Speaker 1: n LCS Phillies and Padres starting tonight in San Diego, 198 00:10:54,240 --> 00:10:56,960 Speaker 1: two teams who failed to win ninety games, will decide 199 00:10:57,000 --> 00:11:00,199 Speaker 1: the pennant after three n l teams at won over 200 00:11:00,240 --> 00:11:03,000 Speaker 1: a hundred games and Blue. The Mets were outsted weeks six, 201 00:11:03,000 --> 00:11:04,760 Speaker 1: wrapped up a f C West game in l A 202 00:11:04,840 --> 00:11:08,120 Speaker 1: went over time. Chargers beat the Broncos nineteen to sixteen, 203 00:11:08,160 --> 00:11:10,199 Speaker 1: third straight wins for l A denvers two and four. 204 00:11:10,280 --> 00:11:13,280 Speaker 1: The Jets visit the Broncos on Sunday. Only one a 205 00:11:13,400 --> 00:11:16,120 Speaker 1: f C team has a better record than the Jets. 206 00:11:16,120 --> 00:11:18,520 Speaker 1: Set the Garden, Rangers and Ducks could start for the 207 00:11:18,520 --> 00:11:23,040 Speaker 1: Blue Shirts, especially the man advantage stick Candling stacks it up. 208 00:11:23,120 --> 00:11:26,640 Speaker 1: Let's start to that down low pro Tracker crow the 209 00:11:26,679 --> 00:11:32,120 Speaker 1: bout a draft from the Stars. It was abouder Jets 210 00:11:32,120 --> 00:11:34,760 Speaker 1: Seer got pro check for the first power play goal. 211 00:11:35,240 --> 00:11:40,640 Speaker 1: If time pro Checkbot chat to the great esp and 212 00:11:40,720 --> 00:11:43,600 Speaker 1: Laters manager scored another power play goal. Rangers being Anaheim 213 00:11:43,679 --> 00:11:45,760 Speaker 1: six to four. They're off to a three and one start. 214 00:11:46,280 --> 00:11:48,840 Speaker 1: NBA season tips off tonight with a couple of games. 215 00:11:49,000 --> 00:11:52,400 Speaker 1: Nixon Nets supposed kick going tomorrow, John stash Ay, Bloomberg 216 00:11:52,440 --> 00:11:54,840 Speaker 1: Sports Nacol All right, John, thanks Ses and p futures 217 00:11:54,880 --> 00:11:56,880 Speaker 1: right now at forty point, staff futures have two hundred 218 00:11:56,920 --> 00:12:00,400 Speaker 1: seventy three. Nastatic futures are higher by one hundred forty 219 00:12:00,480 --> 00:12:08,120 Speaker 1: one points. And you're listening to Bloomberg Daybreak, Bloomberg eleven 220 00:12:08,160 --> 00:12:09,760 Speaker 1: three oh weather, It's gonna be cool for the next 221 00:12:09,840 --> 00:12:13,360 Speaker 1: few days. Upper fifties today, mid fifties and sunny tomorrow 222 00:12:13,559 --> 00:12:17,599 Speaker 1: sunshine upper fifties on Thursday right now fifty one in 223 00:12:17,800 --> 00:12:25,160 Speaker 1: Central Park Markets. Headlines and breaking news twenty four hours 224 00:12:25,200 --> 00:12:28,360 Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business Outland 225 00:12:28,480 --> 00:12:37,880 Speaker 1: at Bloomberg Quicktape. This is a Bloomberg Business flash and 226 00:12:37,960 --> 00:12:40,720 Speaker 1: I'm Karen Moscow. And stocks are extending a rebound amid 227 00:12:40,800 --> 00:12:43,000 Speaker 1: a focus on earnings and as the UK's efforts to 228 00:12:43,080 --> 00:12:46,920 Speaker 1: foster greater stability as volatile bond market lifts sentiment toward 229 00:12:47,040 --> 00:12:50,640 Speaker 1: riskier assets. European stocks are stretching their games into a 230 00:12:50,760 --> 00:12:53,760 Speaker 1: fourth day, while US stock index futures are advancing. This 231 00:12:53,920 --> 00:12:57,320 Speaker 1: after the SNP five closed above a key technical support 232 00:12:57,440 --> 00:13:01,520 Speaker 1: level yesterday. Amazon and Microsoft really major technology and internet 233 00:13:01,600 --> 00:13:04,240 Speaker 1: stocks higher in early trading, and we checked the markets 234 00:13:04,280 --> 00:13:07,160 Speaker 1: every fifteen minutes throughout the trading day. On Bloomberg. Right now, 235 00:13:07,280 --> 00:13:10,319 Speaker 1: SMP futures are up about forty two points, DAL future 236 00:13:10,360 --> 00:13:12,679 Speaker 1: is of two hundred seventy eight and nasday futures up 237 00:13:12,760 --> 00:13:15,640 Speaker 1: one hundred fifty. The decks in Germany's up one point 238 00:13:15,679 --> 00:13:18,400 Speaker 1: two percent, the ten year treasury down three thirty seconds 239 00:13:18,920 --> 00:13:21,920 Speaker 1: four point zero two percent, and the yield on the 240 00:13:22,040 --> 00:13:25,120 Speaker 1: two years at four point four or five percent Nimex 241 00:13:25,200 --> 00:13:27,520 Speaker 1: frude oil is down half percent or forty one cents 242 00:13:27,559 --> 00:13:29,640 Speaker 1: at eighty five dollars five cents of barrel, and the 243 00:13:29,720 --> 00:13:33,079 Speaker 1: euro point at nine eight four nine against the dollar, 244 00:13:33,200 --> 00:13:36,400 Speaker 1: the British pound one point one zero as of Bloomberg 245 00:13:36,440 --> 00:13:38,760 Speaker 1: Business Flash. Now. Here's Michael Barr with more on what's 246 00:13:38,880 --> 00:13:41,760 Speaker 1: going on around the world. Michael, good morning, Good morning, Karen. 247 00:13:41,920 --> 00:13:45,079 Speaker 1: Ukrainian President Zelenski says his country needs more help to 248 00:13:45,160 --> 00:13:48,480 Speaker 1: defend itself from the rand rainy and made so called 249 00:13:48,559 --> 00:13:52,240 Speaker 1: kamikaze drones the Russian army has been using to attack 250 00:13:52,280 --> 00:13:56,240 Speaker 1: civilion infrastructure. At least eight people were killed during yesterday's strinks. 251 00:13:56,559 --> 00:13:59,880 Speaker 1: A suspected serial killer in Stockton, California, scheduled to be 252 00:14:00,080 --> 00:14:03,559 Speaker 1: arranged today. Authorities say forty three year old Westley Brownlee 253 00:14:03,640 --> 00:14:06,840 Speaker 1: is accused of terrorizing the community for months. In baseball, 254 00:14:06,840 --> 00:14:09,800 Speaker 1: the Yankees and Guardians will play their deciding game five 255 00:14:09,840 --> 00:14:12,720 Speaker 1: of their A L d yes this afternoon four pm. 256 00:14:13,120 --> 00:14:16,439 Speaker 1: Rain postponed last night's game. Monday night football Chargers beat 257 00:14:16,480 --> 00:14:20,640 Speaker 1: the Broncos in overtime. Nineteen sixteen. Global News twenty four 258 00:14:20,680 --> 00:14:24,160 Speaker 1: hours a day on air and on Bloomberg Quicktake powered 259 00:14:24,200 --> 00:14:27,560 Speaker 1: by more than twenty seven hundred journalists and analysts in 260 00:14:27,640 --> 00:14:30,480 Speaker 1: more than one hundred twenty countries. I'm Michael Barr, and 261 00:14:30,600 --> 00:14:33,720 Speaker 1: this is Bloomberg NA. Thanks Michael. It's five nineteen on 262 00:14:33,800 --> 00:14:37,000 Speaker 1: Wall Street Line from the Bloomberg Interactive Broker Studios. This 263 00:14:37,200 --> 00:14:39,960 Speaker 1: is Bloomberg Daybreak. Bank earnings have been the theme the 264 00:14:40,040 --> 00:14:42,720 Speaker 1: last few days. Yesterday, of course, Bank of America reported 265 00:14:42,760 --> 00:14:45,640 Speaker 1: results that beat estimates. Now we want to hear from 266 00:14:45,640 --> 00:14:48,400 Speaker 1: the man in charge of that bank, CEO, Brian moynihan. 267 00:14:48,520 --> 00:14:51,360 Speaker 1: He tells us, even though spending is slowing, the consumer 268 00:14:51,440 --> 00:14:55,640 Speaker 1: remains strong. Brian moynihan spoke with Bloomberg's David weston late yesterday. 269 00:14:55,720 --> 00:14:58,440 Speaker 1: Let's listen in to that conversation. Now you've said the 270 00:14:58,520 --> 00:15:00,840 Speaker 1: consumer is a strong continue to be strong. I think 271 00:15:00,840 --> 00:15:03,200 Speaker 1: you said ten percent up perhaps from what you saw 272 00:15:03,320 --> 00:15:05,880 Speaker 1: in October. But how long can it last? You have 273 00:15:06,000 --> 00:15:07,880 Speaker 1: some competitors saying by the middle of next year they're 274 00:15:07,880 --> 00:15:11,600 Speaker 1: going to run out of those balance sheets. Let's step 275 00:15:11,680 --> 00:15:15,160 Speaker 1: back and talk about the different ways we talk about resiliency. 276 00:15:15,560 --> 00:15:18,320 Speaker 1: First is are the consumer spending? Are they doing things 277 00:15:18,400 --> 00:15:20,480 Speaker 1: they had drives? The US economy, as you well know. 278 00:15:21,200 --> 00:15:23,480 Speaker 1: And so the spending for the third quarter was ten 279 00:15:23,520 --> 00:15:26,320 Speaker 1: percent higher it was last year's third quarter. The spending 280 00:15:26,360 --> 00:15:29,120 Speaker 1: for the first couple of weeks in October as ten 281 00:15:29,160 --> 00:15:32,720 Speaker 1: percent highed it was last October for the first two weeks. Now, 282 00:15:33,360 --> 00:15:35,440 Speaker 1: what we told people was you're seeing it slow just 283 00:15:35,600 --> 00:15:38,600 Speaker 1: to hair. So it was maybe four fift early in 284 00:15:38,640 --> 00:15:41,880 Speaker 1: the year twelve and now ten, which is frankly, what 285 00:15:42,600 --> 00:15:44,080 Speaker 1: people are trying to do is get the spending down 286 00:15:44,080 --> 00:15:45,880 Speaker 1: a little bit, get the inflationary pressures down in the 287 00:15:46,000 --> 00:15:47,920 Speaker 1: in the drag of the interest rates, but it's still 288 00:15:48,000 --> 00:15:50,800 Speaker 1: strong and then so that's one one way to think about. 289 00:15:51,240 --> 00:15:52,800 Speaker 1: The other way to think about the consumers did have 290 00:15:52,840 --> 00:15:55,320 Speaker 1: money in accounts to spend, and in the month of 291 00:15:56,080 --> 00:15:59,400 Speaker 1: September the account balances were flat or slightly over where 292 00:15:59,400 --> 00:16:02,040 Speaker 1: they weren't odd best, and that is multiples of where 293 00:16:02,040 --> 00:16:04,520 Speaker 1: they were pre pandemic. And they continue to hold their 294 00:16:04,560 --> 00:16:07,080 Speaker 1: own And you can see inside the cash flowing customers 295 00:16:07,480 --> 00:16:11,560 Speaker 1: not not not making any reflection on the This is 296 00:16:11,600 --> 00:16:14,080 Speaker 1: tough on certain customers others, but even customers have lower 297 00:16:14,120 --> 00:16:17,240 Speaker 1: income levels, we can send cash flowing positive. Still, rent 298 00:16:17,320 --> 00:16:19,760 Speaker 1: increases could slow that down. Other things can happen, but 299 00:16:19,880 --> 00:16:22,040 Speaker 1: the core thing is as of the third quarter, they 300 00:16:22,120 --> 00:16:24,160 Speaker 1: continue to cash flow and they can have more money 301 00:16:24,160 --> 00:16:26,960 Speaker 1: in the accounts than they did before the pandemic by multiples. 302 00:16:27,200 --> 00:16:28,880 Speaker 1: And then you go to their credit quality, and a 303 00:16:28,920 --> 00:16:31,880 Speaker 1: credit quality Bank of America in our consumer books is 304 00:16:32,000 --> 00:16:35,120 Speaker 1: very strong across the board. The payment that delinquencies are 305 00:16:35,520 --> 00:16:38,000 Speaker 1: much lower they were pre pandemic, much lower they were 306 00:16:38,040 --> 00:16:41,040 Speaker 1: in any average PI best year type period. And yes 307 00:16:41,120 --> 00:16:42,840 Speaker 1: they moved a little bit off the floor, but they're 308 00:16:42,840 --> 00:16:46,200 Speaker 1: still much lower they've been. So consumers are spending, they 309 00:16:46,280 --> 00:16:48,800 Speaker 1: have money, they're employed, you can see the unemployment numbers, 310 00:16:48,880 --> 00:16:51,960 Speaker 1: and they have good credit. And that's good news for America, 311 00:16:52,280 --> 00:16:54,400 Speaker 1: but also makes the feeds jobs suffer because they're trying 312 00:16:54,400 --> 00:16:56,320 Speaker 1: to slow down this American consumer, which is a very 313 00:16:56,360 --> 00:16:58,680 Speaker 1: resilient thing. But just to make sure I understand it, 314 00:16:58,760 --> 00:17:00,960 Speaker 1: and obviously you can't promise what's gonna happen next year, 315 00:17:01,000 --> 00:17:02,680 Speaker 1: I'm not asking you to do that, but a lot 316 00:17:02,680 --> 00:17:04,720 Speaker 1: of condems are saying the reason consumer is so strong 317 00:17:04,800 --> 00:17:06,800 Speaker 1: right now is because the balance sheet were so strong 318 00:17:06,920 --> 00:17:09,360 Speaker 1: coming out of the pandemic. At this point, you don't 319 00:17:09,480 --> 00:17:12,000 Speaker 1: see those balance sheets really turning down as we get 320 00:17:12,040 --> 00:17:16,119 Speaker 1: into next year. We don't see it yet. And so 321 00:17:16,480 --> 00:17:18,359 Speaker 1: if you look back to two quarters ago when we 322 00:17:18,400 --> 00:17:20,480 Speaker 1: did Darns Called, people are like, oh, the consumers getting 323 00:17:20,560 --> 00:17:23,760 Speaker 1: knocked out of the game. They're spending their accounts. Six 324 00:17:23,840 --> 00:17:25,439 Speaker 1: months later the money is still there. So I think 325 00:17:25,480 --> 00:17:29,679 Speaker 1: people are over anticipating future. We as our projections Canada 326 00:17:29,720 --> 00:17:31,960 Speaker 1: bout Spot and the team and our research group, which 327 00:17:31,960 --> 00:17:33,560 Speaker 1: is one of the best in the world, has the 328 00:17:33,640 --> 00:17:37,240 Speaker 1: third quarter positive, the fourth quarter negative, the first quarter negative, 329 00:17:37,320 --> 00:17:39,880 Speaker 1: the second quarter of negative, the third quarter of twenty 330 00:17:39,920 --> 00:17:41,720 Speaker 1: three negative, albeit a like a one to one and 331 00:17:41,720 --> 00:17:45,239 Speaker 1: a half percent GDP analyzed growth right negative growth rate. 332 00:17:45,359 --> 00:17:48,359 Speaker 1: So we're predicting a shallow economy. That's our core assumptions 333 00:17:48,359 --> 00:17:50,080 Speaker 1: and embedded in that if you look at how we 334 00:17:50,119 --> 00:17:52,360 Speaker 1: set our reserves, we have the assumption that we're gonna 335 00:17:52,400 --> 00:17:54,119 Speaker 1: have five a half percent unemployment. I don't I'm not 336 00:17:54,160 --> 00:17:56,600 Speaker 1: sure it's gonna happen, especially this quarter. We have it 337 00:17:56,680 --> 00:17:58,640 Speaker 1: a five per step. But that's the conservatives. We build 338 00:17:58,640 --> 00:18:00,480 Speaker 1: our balance sheet from an operating ass but if you 339 00:18:00,520 --> 00:18:03,119 Speaker 1: look at the consumers, there's there's not the signs that 340 00:18:03,240 --> 00:18:05,560 Speaker 1: we see in our numbers or other people's numbers. Quite frankly, 341 00:18:05,600 --> 00:18:08,159 Speaker 1: it says they're slowing down yet, or they're in stress yet, 342 00:18:08,280 --> 00:18:10,040 Speaker 1: and that will have to be part of what happens 343 00:18:10,080 --> 00:18:12,480 Speaker 1: in order for there to be a de procession, because 344 00:18:12,480 --> 00:18:15,200 Speaker 1: if the consumers have money in this big consumer driven economy, 345 00:18:15,680 --> 00:18:18,680 Speaker 1: you know, that's that's what keeps America strong. Brian, You've 346 00:18:18,760 --> 00:18:21,520 Speaker 1: always taken great pride in the Bank of America research 347 00:18:21,680 --> 00:18:24,080 Speaker 1: unit and how good they are. Let's assume their numbers 348 00:18:24,080 --> 00:18:26,080 Speaker 1: are exactly right. It could be better, could be worse. 349 00:18:26,200 --> 00:18:28,760 Speaker 1: Exactly right, three down, quarters, five, five and a half 350 00:18:28,800 --> 00:18:32,280 Speaker 1: percent unemployment. What does that do for your loan lost provisions? 351 00:18:32,440 --> 00:18:35,800 Speaker 1: What kind of provisions you have to make for that? Well, 352 00:18:35,920 --> 00:18:38,400 Speaker 1: inherently we're always just counting in future because the way 353 00:18:38,440 --> 00:18:40,879 Speaker 1: the Cecil rules work so called, you look out for 354 00:18:40,920 --> 00:18:43,400 Speaker 1: the life alone. So you build reserves, and we built 355 00:18:43,400 --> 00:18:45,600 Speaker 1: four hundred million or so this quarter, which is building 356 00:18:45,720 --> 00:18:48,480 Speaker 1: that scenario, which is six to the base case, which 357 00:18:48,560 --> 00:18:51,560 Speaker 1: is the average of blue chip economist an adverse case. 358 00:18:51,920 --> 00:18:55,840 Speaker 1: When you blend that together, it implies those advocates have 359 00:18:55,960 --> 00:18:58,879 Speaker 1: high inflation and have high unemployment in them, and you 360 00:18:58,960 --> 00:19:01,359 Speaker 1: blinded together. The core what we did at the end 361 00:19:01,400 --> 00:19:03,280 Speaker 1: of the third quarter has five percent uneployment for the 362 00:19:03,320 --> 00:19:06,240 Speaker 1: fourth quarter of twenty two and more than like five 363 00:19:06,280 --> 00:19:08,520 Speaker 1: and a half or next year. So it's very conservative built. 364 00:19:08,720 --> 00:19:11,479 Speaker 1: So your provisions will go up against that backdrop. At 365 00:19:11,520 --> 00:19:13,200 Speaker 1: one point you'll start to see the other side of 366 00:19:13,240 --> 00:19:15,280 Speaker 1: it emerge. And that's what it sort of happened. Back 367 00:19:15,359 --> 00:19:16,919 Speaker 1: in the penalty. We put up a lot of reserves 368 00:19:16,960 --> 00:19:18,560 Speaker 1: and we took them back in once you saw that 369 00:19:18,680 --> 00:19:21,879 Speaker 1: the impact of because what the administration did and what 370 00:19:22,000 --> 00:19:24,520 Speaker 1: Congress did, and what the central banks did around the world, 371 00:19:24,880 --> 00:19:28,000 Speaker 1: you actually mitigate the effects of the unemployment numbers that 372 00:19:28,040 --> 00:19:31,919 Speaker 1: won't happen in a standard recession I would uh would expect. 373 00:19:31,960 --> 00:19:34,080 Speaker 1: But on the other hand, the consumers are going in 374 00:19:34,200 --> 00:19:35,919 Speaker 1: much stronger shape than they did even in in two 375 00:19:36,000 --> 00:19:38,679 Speaker 1: thousand and six seven leading into the Great Financial Crisis. 376 00:19:38,920 --> 00:19:41,600 Speaker 1: And that was Bank of America CEO Brian moynihan speaking 377 00:19:41,640 --> 00:19:44,679 Speaker 1: with Bloomberg's David Weston. You can catch the full conversation 378 00:19:44,800 --> 00:19:48,320 Speaker 1: online at Bloomberg dot com or on the Bloomberg terminal. 379 00:19:48,960 --> 00:19:51,760 Speaker 1: SFP futures right now up thirty seven points stuff futures 380 00:19:51,800 --> 00:19:54,240 Speaker 1: are hired by two hundred forty eight and Nasdaq futures 381 00:19:54,280 --> 00:19:57,160 Speaker 1: on the rise by one thirty nine points. Tend your 382 00:19:57,160 --> 00:19:59,680 Speaker 1: treasuries down to thirty seconds now the yield of four 383 00:20:00,240 --> 00:20:08,960 Speaker 1: zero two. This is Bloomberg Bloomberg eleven three oh weather clearing, 384 00:20:09,000 --> 00:20:12,440 Speaker 1: cooler today, upper fifties for highs, sunny, mid fifties Tomorrow, 385 00:20:12,880 --> 00:20:15,960 Speaker 1: sunshine into Thursday, with highs back in the upper fifties too, 386 00:20:15,960 --> 00:20:18,800 Speaker 1: Around sixty degrees right now fifty one in Central Park. 387 00:20:22,119 --> 00:20:26,640 Speaker 1: Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 388 00:20:26,800 --> 00:20:31,399 Speaker 1: Bloomberg E loving freedome to Washington, d C. Bloomberg to Boston, 389 00:20:31,560 --> 00:20:34,800 Speaker 1: Bloomberg one oh six one to San Francisco, Bloomberg N 390 00:20:35,040 --> 00:20:37,840 Speaker 1: sixty to the country, Sirius XM to A one nine, 391 00:20:38,240 --> 00:20:41,720 Speaker 1: and around the globe the Bloomberg business in Bloomberg Radio 392 00:20:41,880 --> 00:20:50,480 Speaker 1: dot Com. This is Bloomberg Daybreak. It's five thirty on 393 00:20:50,520 --> 00:20:53,400 Speaker 1: Wall Speak. Good morning, I'm Nathan Hager and I'm Kared Moscow, 394 00:20:53,760 --> 00:20:56,359 Speaker 1: just about four hours away from the open of US trading. 395 00:20:56,440 --> 00:20:57,840 Speaker 1: Let's get you up to date on the news you 396 00:20:57,960 --> 00:21:00,560 Speaker 1: need to know at this shower. US futures are rising 397 00:21:00,640 --> 00:21:03,960 Speaker 1: at her. Ending to yesterday's big rally, The SMP posted 398 00:21:04,000 --> 00:21:06,560 Speaker 1: a gain of two and a half percent in Monday's session, 399 00:21:06,600 --> 00:21:09,960 Speaker 1: while the nastack rows three point four percent. Still expect 400 00:21:10,000 --> 00:21:13,919 Speaker 1: more volatility ahead, that's according to Samir Samana with Wells Fargo. 401 00:21:14,320 --> 00:21:15,800 Speaker 1: But what I'd really like to see is for this 402 00:21:15,960 --> 00:21:18,480 Speaker 1: market to try and find kind of a bottom and 403 00:21:18,560 --> 00:21:21,000 Speaker 1: from that standpoint, just maybe even trade sideways for a 404 00:21:21,080 --> 00:21:23,400 Speaker 1: few days. I think these, you know, constitute to three 405 00:21:23,440 --> 00:21:25,639 Speaker 1: percent up and down days. I think a continue to 406 00:21:25,680 --> 00:21:28,200 Speaker 1: spook investors. I think maybe the best course of action 407 00:21:28,240 --> 00:21:30,480 Speaker 1: for for markets from here, given what the FEDS trying 408 00:21:30,520 --> 00:21:32,360 Speaker 1: to engineers, just to go sideways for a few days. 409 00:21:32,840 --> 00:21:35,840 Speaker 1: Well S Fargo Samir Simana says daily swains have two 410 00:21:35,920 --> 00:21:39,399 Speaker 1: to three indicate fragility in the market overseas. Karen, the 411 00:21:39,520 --> 00:21:42,640 Speaker 1: UK Government's trying to continue calming markets after a tough 412 00:21:42,720 --> 00:21:45,200 Speaker 1: first month for Liz Trust, The new Prime Minister tells 413 00:21:45,240 --> 00:21:47,680 Speaker 1: the BBC she is sorry for going too far, too 414 00:21:47,800 --> 00:21:51,400 Speaker 1: fast on her economic plan. We have made mistakes. I'm 415 00:21:51,480 --> 00:21:55,760 Speaker 1: sorry for those mistakes, but I've fixed the mistakes. I've 416 00:21:55,760 --> 00:21:59,840 Speaker 1: appointed a new chancellor. We have restored economics to the 417 00:22:00,000 --> 00:22:02,560 Speaker 1: see in fiscal discipline. Well I now want to do? 418 00:22:03,000 --> 00:22:05,280 Speaker 1: Is guy wanted to deliver for the public? Let Trust 419 00:22:05,320 --> 00:22:07,800 Speaker 1: tells the BBC she plans to keep serving as Prime Minister. 420 00:22:08,160 --> 00:22:10,480 Speaker 1: One other note, The Financial Times is reporting the Bank 421 00:22:10,560 --> 00:22:13,240 Speaker 1: of England will likely delay its planned sale of government 422 00:22:13,320 --> 00:22:15,639 Speaker 1: bonds on October thirty one, but the b o E 423 00:22:15,840 --> 00:22:18,480 Speaker 1: is refuting that report. Back here in the US, Nathan 424 00:22:18,560 --> 00:22:21,879 Speaker 1: big Banks wrap up earnings at Goldman SAX reporting this morning. 425 00:22:21,920 --> 00:22:24,000 Speaker 1: Then it's big Tech in focus when we get her 426 00:22:24,040 --> 00:22:27,000 Speaker 1: nas from Netflix in the afternoon, and Bloomberg's Tom Busby 427 00:22:27,080 --> 00:22:30,120 Speaker 1: has a preview. The key for the streaming video Pioneer, 428 00:22:30,200 --> 00:22:33,359 Speaker 1: which just announced the debut of a cheaper, ad supported 429 00:22:33,480 --> 00:22:37,199 Speaker 1: version on November two, is whether it returned to subscriber 430 00:22:37,280 --> 00:22:40,399 Speaker 1: growth thanks to hits like Squid Game, Inventing Anna, and Dahmer. 431 00:22:40,560 --> 00:22:42,880 Speaker 1: After shedding a ton of subscribers in the first half 432 00:22:42,920 --> 00:22:45,800 Speaker 1: of this year, estimates called for a million more paying 433 00:22:45,880 --> 00:22:48,800 Speaker 1: customers added in the third quarter, led by editions in 434 00:22:48,840 --> 00:22:52,040 Speaker 1: the Asia Pacific and Latin America regions and on a 435 00:22:52,119 --> 00:22:56,400 Speaker 1: crackdown and password sharing. Tom Busby, Bloomberg Daybreak. Thanks Tom 436 00:22:56,440 --> 00:22:58,320 Speaker 1: let's turn to politics now, where the White House is 437 00:22:58,359 --> 00:23:01,760 Speaker 1: watching energy prices closely. Sources tell us the Biden administrations 438 00:23:01,800 --> 00:23:04,480 Speaker 1: preparing to release up to fifteen million barrels of oil 439 00:23:04,520 --> 00:23:07,399 Speaker 1: from the nation's emergency stockpile to help keep prices steady. 440 00:23:07,760 --> 00:23:10,560 Speaker 1: Checking prices now name excruds down a half percent at 441 00:23:10,600 --> 00:23:13,440 Speaker 1: eight five one a barrel. And on the geo political 442 00:23:13,480 --> 00:23:16,359 Speaker 1: stage this morning, Nathan China and taiwan er and focus 443 00:23:16,440 --> 00:23:19,560 Speaker 1: Secretary of State Anthony Blincoln Save Ajing is making plans 444 00:23:19,640 --> 00:23:22,880 Speaker 1: to seize Taiwan on a faster timeline than previously thought. 445 00:23:23,240 --> 00:23:26,480 Speaker 1: That assessment comes as China holds its Communist Party Congress 446 00:23:26,560 --> 00:23:30,160 Speaker 1: this week. Futures are higher. Straight ahead your latest local headlines, 447 00:23:30,280 --> 00:23:38,720 Speaker 1: plus a check of sports, and this is Bloomberg. Thanksparing. 448 00:23:39,400 --> 00:23:41,919 Speaker 1: On Wall Street, fifty degrees in Central Park, Heavy delays 449 00:23:41,960 --> 00:23:43,480 Speaker 1: on the south on New York State through Way to 450 00:23:43,520 --> 00:23:45,920 Speaker 1: the Spring Galley tolls details coming up. A traffic first 451 00:23:45,960 --> 00:23:47,679 Speaker 1: Michael Barr with more on what's going on in New 452 00:23:47,760 --> 00:23:49,760 Speaker 1: York and around the world. Michael, thank you very much. 453 00:23:49,880 --> 00:23:53,160 Speaker 1: Nathan Ratt. Complaints in New York City are up sevent 454 00:23:53,880 --> 00:23:57,760 Speaker 1: in the last year. City officials are now changing garbage 455 00:23:57,800 --> 00:24:01,719 Speaker 1: collection rules. Instead of being allowed to pile trash bags 456 00:24:01,800 --> 00:24:04,720 Speaker 1: on the curbs the day before pick up, people will 457 00:24:04,800 --> 00:24:08,000 Speaker 1: have to put out the trash no earlier than eight pm. 458 00:24:08,480 --> 00:24:12,440 Speaker 1: New York Sanitation Commissioner Jessica Tish why have we tolerated 459 00:24:12,520 --> 00:24:15,639 Speaker 1: this for so long? Over the last six months, the 460 00:24:15,760 --> 00:24:21,119 Speaker 1: Department of Sanitation has reoriented itself around one goal, getting 461 00:24:21,160 --> 00:24:25,600 Speaker 1: our streets cleaner faster. Commissioner Tish says, the Rats are 462 00:24:25,680 --> 00:24:30,560 Speaker 1: absolutely going to hate this announcement. Georgia Republican Governor Brian 463 00:24:30,720 --> 00:24:34,240 Speaker 1: Kemp and Democrats Stacy Abrams clashed in the first of 464 00:24:34,359 --> 00:24:38,200 Speaker 1: two debates of their closely watched rematch at an Atlanta 465 00:24:38,280 --> 00:24:41,840 Speaker 1: press club event last night that also included Libertarian candidate 466 00:24:41,960 --> 00:24:46,600 Speaker 1: Shane Hazel. Kemp paated Abrams as soft on crime and 467 00:24:46,720 --> 00:24:50,399 Speaker 1: tieder repeatedly with President Joe Biden and the nation's economic woes. 468 00:24:51,119 --> 00:24:54,359 Speaker 1: Madasar is to continue to help them fight through fourty 469 00:24:54,440 --> 00:24:57,760 Speaker 1: year high inflation and high gas prices and other things 470 00:24:57,840 --> 00:25:00,680 Speaker 1: that our door to families are facing right now, quite 471 00:25:00,720 --> 00:25:03,879 Speaker 1: honestly because of bad policies in Washington, d C. From 472 00:25:03,920 --> 00:25:07,520 Speaker 1: President Biden and the Democrats that have complete control. Abraham's 473 00:25:07,600 --> 00:25:11,359 Speaker 1: portrayed Kemp has out of touch with Georgian's priorities and 474 00:25:11,520 --> 00:25:15,320 Speaker 1: criticized him for backing tougher anti abortion restrictions and looser 475 00:25:15,400 --> 00:25:19,000 Speaker 1: gun laws. He has weakened gun laws and flooded our streets. 476 00:25:19,320 --> 00:25:23,080 Speaker 1: He has weakened our privacy rights and our women's rights. 477 00:25:23,359 --> 00:25:27,760 Speaker 1: He has denied women to access to reproductive care. In eighteen, 478 00:25:27,800 --> 00:25:30,960 Speaker 1: Abrahams came close to winning the governor's race against Kemp. 479 00:25:31,440 --> 00:25:34,119 Speaker 1: The State Department says the US will take action against 480 00:25:34,200 --> 00:25:38,719 Speaker 1: companies and nations working with Iran's drone program after Russia 481 00:25:38,880 --> 00:25:42,360 Speaker 1: used them for deadly Kama Kanze strikes, and Kiev, Ukraine's 482 00:25:42,400 --> 00:25:46,160 Speaker 1: Prime Ministers says the latest Russian attack knocked out power 483 00:25:46,200 --> 00:25:49,480 Speaker 1: to hundreds of towns and villages as the country prepares 484 00:25:49,560 --> 00:25:52,320 Speaker 1: for winter. Global News twenty four hours a day on 485 00:25:52,480 --> 00:25:56,040 Speaker 1: air and on Bloomberg Quicktake Power by more than seven 486 00:25:56,119 --> 00:25:59,240 Speaker 1: hundred journalists and analysts in more than a hundred twenty countries. 487 00:25:59,280 --> 00:26:07,480 Speaker 1: I'm Michael Barr, This is Bloomberg. Nathan. Thanks Michael five 488 00:26:07,520 --> 00:26:09,399 Speaker 1: on All Street Time for the Bloomberg Sports Something with 489 00:26:09,480 --> 00:26:12,080 Speaker 1: John Stashower. Thanks Nathan. The Yankees and Guardians and a 490 00:26:12,160 --> 00:26:14,520 Speaker 1: sellout crowd all at the stadium last night for a 491 00:26:14,600 --> 00:26:18,280 Speaker 1: seven o'clock start, but at nine thirty Lorraine had not stopped. 492 00:26:18,359 --> 00:26:21,320 Speaker 1: The decisive Game five was postponed to four o'clock today. 493 00:26:21,400 --> 00:26:23,920 Speaker 1: Aaron Blon was asked about playing a do or die 494 00:26:24,000 --> 00:26:27,040 Speaker 1: game to this time of year, You're you're playing for 495 00:26:27,240 --> 00:26:29,320 Speaker 1: there's a ton on the line, and you're playing for it, 496 00:26:29,480 --> 00:26:35,879 Speaker 1: and hopefully you know you find that awesome. You know 497 00:26:35,960 --> 00:26:38,440 Speaker 1: that you and I think our guys do realize that 498 00:26:38,720 --> 00:26:41,399 Speaker 1: that's a great opportunity. With that comes some nerves and 499 00:26:42,160 --> 00:26:44,280 Speaker 1: and things you gotta deal with. When is changing his 500 00:26:44,400 --> 00:26:47,359 Speaker 1: starting picture now that Nestor Cortez has three days rast 501 00:26:47,480 --> 00:26:50,240 Speaker 1: Hill start not Jamison Tionned. The Guardians say they are 502 00:26:50,280 --> 00:26:53,800 Speaker 1: sticking with Aaron Savale instead of using Shane Bieber. It's 503 00:26:53,840 --> 00:26:56,840 Speaker 1: the NLCS. No one expected. The Phillies finished in third 504 00:26:56,920 --> 00:26:58,200 Speaker 1: place in the n l e S. They were the 505 00:26:58,280 --> 00:26:59,960 Speaker 1: last team to get in. The Padres had to beat 506 00:27:00,240 --> 00:27:03,120 Speaker 1: to one hundred plus win teams the Mets and Dodgers, 507 00:27:03,200 --> 00:27:05,720 Speaker 1: and yet it's the Padres in Phillies Game one tonight 508 00:27:05,760 --> 00:27:08,199 Speaker 1: in San Diego, another NFL primetime game without a lot 509 00:27:08,240 --> 00:27:11,040 Speaker 1: of touchdowns. Chargers and Broncos both scored one combined for 510 00:27:11,200 --> 00:27:14,080 Speaker 1: seven field goals. L A kicked one late in overtime 511 00:27:14,160 --> 00:27:17,360 Speaker 1: after Denver fumbled the punt. The Chargers one nineteen to sixteen. 512 00:27:17,760 --> 00:27:21,080 Speaker 1: Cowboys and Dolphins both expect their starting quarterbacks to return 513 00:27:21,160 --> 00:27:24,119 Speaker 1: on Sunday, Dak Prescott from the thumb thumb injury to 514 00:27:24,280 --> 00:27:27,200 Speaker 1: a ton of Belowa from the concussion. Meanwhile, Washington g 515 00:27:27,320 --> 00:27:30,080 Speaker 1: V Carson Wentz has a broken finger. He'll miss the 516 00:27:30,119 --> 00:27:32,399 Speaker 1: next four to six weeks. If the Garden Rangers improved 517 00:27:32,440 --> 00:27:34,240 Speaker 1: to three and one, they beat Anaheim six to four 518 00:27:34,720 --> 00:27:36,440 Speaker 1: to goals for me because of Vanta jad both on 519 00:27:36,440 --> 00:27:38,840 Speaker 1: the power player Tammy Pannair and the goal three assists. 520 00:27:38,880 --> 00:27:40,879 Speaker 1: It's early in the year, but panair and leads the 521 00:27:41,000 --> 00:27:44,200 Speaker 1: NHL and scoring. The NBA season tips off tonight, John 522 00:27:44,280 --> 00:27:47,360 Speaker 1: Stash that went Bloomberg sparts me. John thanks thirty seven 523 00:27:47,400 --> 00:27:49,520 Speaker 1: on Wall Street time for the Trice State Business Report 524 00:27:49,560 --> 00:27:52,680 Speaker 1: with Bloomberg's When Di Gillette New Jersey's casinos and horse 525 00:27:52,760 --> 00:27:55,879 Speaker 1: tracks offering sports betting, we're big winners. Last month they 526 00:27:56,000 --> 00:27:58,640 Speaker 1: raked in nearly four hundred and eighty five million dollars, 527 00:27:58,800 --> 00:28:01,720 Speaker 1: up nearly seven percent compared to a year earlier. In 528 00:28:01,880 --> 00:28:05,040 Speaker 1: person winnings total two hundred and fifty two million, up 529 00:28:05,080 --> 00:28:07,840 Speaker 1: more than one percent compared to before the pandemic. A 530 00:28:07,920 --> 00:28:11,080 Speaker 1: controversy involving late night talk show host James Cordon and 531 00:28:11,160 --> 00:28:14,880 Speaker 1: New York City restaurant Balthazar has been resolved. Restaurant tour 532 00:28:15,040 --> 00:28:18,360 Speaker 1: Keith McNally took to Instagram to complain about Cordon's bad 533 00:28:18,440 --> 00:28:22,320 Speaker 1: behavior towards staff, accusing him of being abusive. Towservers, you 534 00:28:22,480 --> 00:28:25,000 Speaker 1: banned him from the eatery, but then Cordon called with 535 00:28:25,080 --> 00:28:29,000 Speaker 1: a profuse apology and all was forgiven. McNally posted again 536 00:28:29,160 --> 00:28:32,119 Speaker 1: saying the ban is lifted and b d and medical 537 00:28:32,240 --> 00:28:35,760 Speaker 1: technology company based in Franklin Lakes, New Jersey, has signed 538 00:28:35,800 --> 00:28:39,080 Speaker 1: an agreement with Paris based medical device and delivery systems 539 00:28:39,160 --> 00:28:44,000 Speaker 1: manufacturer Biocore to use connected technology to track adherents for 540 00:28:44,200 --> 00:28:48,160 Speaker 1: self administered drug therapies. That's the Bloomberg Tri State Business Report. 541 00:28:48,160 --> 00:28:51,120 Speaker 1: I'm windy to let thanks Wendy on Wall Street, Bloomberg 542 00:28:51,200 --> 00:28:53,280 Speaker 1: Radios on the air from San Francisco to New York, 543 00:28:53,360 --> 00:28:55,560 Speaker 1: London to Hong Kong. Let's check in with our global 544 00:28:55,600 --> 00:28:57,240 Speaker 1: news team for some of the top stories heard on 545 00:28:57,280 --> 00:29:02,560 Speaker 1: our three hundred affiliate radio stations around the world. I'm 546 00:29:02,640 --> 00:29:05,360 Speaker 1: Gina Servetti and for w w b b M in Chicago. 547 00:29:05,520 --> 00:29:09,080 Speaker 1: I'm talking about Boeing offering seven thirty seven match jets 548 00:29:09,280 --> 00:29:12,360 Speaker 1: once bound for China to air India because the planemaker 549 00:29:12,480 --> 00:29:15,719 Speaker 1: tries to unload some of the roughly one forty planes 550 00:29:15,840 --> 00:29:18,959 Speaker 1: it's not allowed to deliver to China. Um Courtney Donahoe 551 00:29:19,120 --> 00:29:21,880 Speaker 1: on ktr H in Houston. The White House is said 552 00:29:21,920 --> 00:29:24,840 Speaker 1: to be planning an oil reserve release announcement this week. 553 00:29:25,240 --> 00:29:28,760 Speaker 1: I'm Steve potoscon w f L A, Tampa Bay. We're 554 00:29:28,840 --> 00:29:32,040 Speaker 1: talking about how a historic building has been saved as 555 00:29:32,120 --> 00:29:34,880 Speaker 1: it will be part of a new development. I'm Caroline 556 00:29:34,920 --> 00:29:37,680 Speaker 1: HEPCILM Blue Bag d A B Dishovedio in London. We've 557 00:29:37,720 --> 00:29:40,160 Speaker 1: been speaking to the Mayor of London City, Colin about 558 00:29:40,200 --> 00:29:43,200 Speaker 1: the state of policing in the capitol and his fiz 559 00:29:43,360 --> 00:29:47,400 Speaker 1: about blackouts this winter. And those are some of the 560 00:29:47,440 --> 00:29:50,160 Speaker 1: stories our twenty seven hundred Bloomberg journalist and analysts are 561 00:29:50,200 --> 00:29:52,600 Speaker 1: working on this morning around the world. It's five thirty 562 00:29:52,640 --> 00:29:55,560 Speaker 1: nine on Wall Street. The following is an editorial from 563 00:29:55,680 --> 00:29:59,880 Speaker 1: Bloomberg Opinion List. Editorial was written by the Bloomberg at 564 00:30:00,000 --> 00:30:04,960 Speaker 1: Storial Board. Russia's efforts to use natural gas exports as 565 00:30:05,080 --> 00:30:09,959 Speaker 1: a geopolitical weapon present Europe with a challenge. When faced 566 00:30:10,040 --> 00:30:13,800 Speaker 1: with such a threat, can it muster the solidarity required 567 00:30:13,840 --> 00:30:17,360 Speaker 1: of a true union? After all, Vladimir Putin's energy cut 568 00:30:17,400 --> 00:30:20,720 Speaker 1: off is a classic external shock that will hurt some 569 00:30:20,960 --> 00:30:25,200 Speaker 1: European countries more than others. No doubt, efforts to expand 570 00:30:25,360 --> 00:30:28,880 Speaker 1: risk sharing will face strong political headwinds, but at the 571 00:30:29,000 --> 00:30:32,120 Speaker 1: very least, the EU should be able to establish a 572 00:30:32,280 --> 00:30:37,120 Speaker 1: permanent fund to provide loans and grants in emergencies. Ultimately, 573 00:30:37,200 --> 00:30:40,680 Speaker 1: what's needed is a central fiscal authority with its own 574 00:30:40,760 --> 00:30:44,240 Speaker 1: revenue source and the power to spend when needed to 575 00:30:44,400 --> 00:30:48,960 Speaker 1: mitigate asymmetric shocks. If a hybrid war with Russia can't 576 00:30:49,040 --> 00:30:52,520 Speaker 1: bring the EU to even consider such a possibility, it's 577 00:30:52,520 --> 00:30:56,479 Speaker 1: hard to imagine what will. The editorial was written by 578 00:30:56,520 --> 00:31:00,040 Speaker 1: the Bloomberg Editorial Board. For more Bloomberg opinion, please go 579 00:31:00,160 --> 00:31:03,600 Speaker 1: to Bloomberg dot com, slash opinion or opie I n 580 00:31:03,720 --> 00:31:07,640 Speaker 1: go on the Bloomberg terminal. This has been Bloomberg Opinion, 581 00:31:07,880 --> 00:31:10,920 Speaker 1: and you can hear Bloomberg opinion editorials every weekday. At 582 00:31:10,960 --> 00:31:14,320 Speaker 1: this time, terminal customers can read more at opie I 583 00:31:14,560 --> 00:31:18,160 Speaker 1: n GOME futures moving higher this morning. You're listening to 584 00:31:18,240 --> 00:31:24,600 Speaker 1: Bloomberg day Break Bloomberg eleven three oh Weather clearing cooler today, 585 00:31:24,720 --> 00:31:28,120 Speaker 1: highs in the upper fifties. Tomorrow sunny, mid fifties will 586 00:31:28,160 --> 00:31:31,560 Speaker 1: be sunny Thursday as well, upper fifties to around sixty 587 00:31:31,560 --> 00:31:38,320 Speaker 1: degrees right now fifty in Central Park. Markets, headlines and 588 00:31:38,520 --> 00:31:41,720 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 589 00:31:41,880 --> 00:31:44,960 Speaker 1: the Bloomberg Business at and at Bloomberg Quick Take. This 590 00:31:45,400 --> 00:31:54,440 Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. And 591 00:31:54,520 --> 00:31:57,240 Speaker 1: stocks are trimming their advance. The pound, the UK guilts 592 00:31:57,240 --> 00:31:59,520 Speaker 1: are weakening after the Bank of England center a fourth. 593 00:31:59,600 --> 00:32:01,840 Speaker 1: That is, we could delay the sale of government bonds 594 00:32:01,920 --> 00:32:04,880 Speaker 1: until the market has comed. Was inaccurate. We checked the 595 00:32:04,920 --> 00:32:07,960 Speaker 1: markets every fifteen minutes throughout the trading day on Bloomberg. 596 00:32:08,360 --> 00:32:11,200 Speaker 1: SNP futures they are still higher, up thirty nine points, 597 00:32:11,280 --> 00:32:14,160 Speaker 1: down features up two hundred fifty two and NASTAG futures 598 00:32:14,480 --> 00:32:17,080 Speaker 1: up one hundred forty seven. The decks in Germany's up 599 00:32:17,160 --> 00:32:19,840 Speaker 1: nine tenths of a percent ten Your treasury down five 600 00:32:19,880 --> 00:32:22,760 Speaker 1: thirtay seconds yield four point oh three percent. The yield 601 00:32:22,800 --> 00:32:24,920 Speaker 1: on the two year four point four or five percent. 602 00:32:25,400 --> 00:32:27,720 Speaker 1: Nine X screwed oil is down six tenths percent or 603 00:32:27,760 --> 00:32:30,120 Speaker 1: forty nine cents at eighty four dollars ninety seven cents 604 00:32:30,120 --> 00:32:33,080 Speaker 1: for barrel comics goals on half percent or seven dollars 605 00:32:33,160 --> 00:32:36,360 Speaker 1: ninety cents at sixteen fifty six and ounce. The euro 606 00:32:36,560 --> 00:32:39,400 Speaker 1: point nine three seven against the dollar British found one 607 00:32:39,440 --> 00:32:41,840 Speaker 1: point one to eight eight and a yen one forty nine. 608 00:32:42,360 --> 00:32:45,120 Speaker 1: The bitcoin this morning it's down about a tenth of 609 00:32:45,160 --> 00:32:48,160 Speaker 1: a percent. It's at nineteen thousand, five hundred dollars as 610 00:32:48,200 --> 00:32:50,360 Speaker 1: of a little berg business flash. Now here's Michael Barr 611 00:32:50,440 --> 00:32:53,280 Speaker 1: with more on what's going on around the world. Michael Karen, 612 00:32:53,320 --> 00:32:56,560 Speaker 1: thank you very much. Ariostrikes have again pounded energy and 613 00:32:56,680 --> 00:33:00,280 Speaker 1: infrastructure facilities in Ukraine, part of an apparent quickening affort 614 00:33:00,360 --> 00:33:04,240 Speaker 1: by Russia to drive Ukrainians into the cold and dark. 615 00:33:04,800 --> 00:33:07,080 Speaker 1: One mayor west of the capitol said all of the 616 00:33:07,160 --> 00:33:10,920 Speaker 1: city was without electricity and water after a double missile strike. Today, 617 00:33:11,480 --> 00:33:14,480 Speaker 1: both sides are concerned about the economy and inflation. For 618 00:33:14,520 --> 00:33:18,360 Speaker 1: the mid term elections. However, polls showed Democrats are motivated 619 00:33:18,400 --> 00:33:23,040 Speaker 1: by issues like abortion. For Republicans, issues like public safety, crime, 620 00:33:23,120 --> 00:33:26,680 Speaker 1: and immigration are driving them to the polls. In baseball, 621 00:33:26,800 --> 00:33:29,880 Speaker 1: after last night's rain out, the Yankees and Guardians will 622 00:33:29,880 --> 00:33:33,000 Speaker 1: play their deciding Game five of their a lds this 623 00:33:33,080 --> 00:33:36,280 Speaker 1: afternoon at four pm Eastern Time. Monday Night football, the 624 00:33:36,360 --> 00:33:39,720 Speaker 1: Charges beat the Broncos in O T nineteen sixteen. In hockey, 625 00:33:39,760 --> 00:33:43,560 Speaker 1: the Rangers, Bruins and Capitals. All one Global News twenty 626 00:33:43,600 --> 00:33:46,840 Speaker 1: four hours a day on air and on Bloomberg Quicktake, 627 00:33:47,120 --> 00:33:50,240 Speaker 1: powered by more than twenty seven hundred journalist and analysts 628 00:33:50,440 --> 00:33:52,800 Speaker 1: in more than a hundred twenty countries. I'm Michael barn 629 00:33:52,920 --> 00:33:56,080 Speaker 1: This is Bloomberg, Nathan. Thanks Michael. It's nine on Wall 630 00:33:56,160 --> 00:33:59,720 Speaker 1: Street Live from the Bloomberg Interactive Broker Studios. This is 631 00:34:00,000 --> 00:34:02,840 Speaker 1: Bloomberg Daybreak on a morning where we're waiting for one 632 00:34:02,960 --> 00:34:06,280 Speaker 1: more big Wall Street bank to report third quarter earnings. 633 00:34:06,360 --> 00:34:10,239 Speaker 1: Goldman Sachs fleshes out the financials picture for us when 634 00:34:10,320 --> 00:34:13,440 Speaker 1: it opens its books before the opening bell. Joining us 635 00:34:13,480 --> 00:34:17,319 Speaker 1: now is Shenali Basset, global finance correspondent for Bloomberg News. 636 00:34:17,400 --> 00:34:21,000 Speaker 1: Of course, Shinale the big news coming into this earnings 637 00:34:21,040 --> 00:34:26,000 Speaker 1: as CEO David Solomon's latest reorganization. What more could we 638 00:34:26,239 --> 00:34:29,239 Speaker 1: hear about that? Once the books get open today? What 639 00:34:29,440 --> 00:34:32,480 Speaker 1: a grand finale to the big six bank earnings? Truly, 640 00:34:32,840 --> 00:34:35,120 Speaker 1: first of all, the numbers themselves will be interesting, but 641 00:34:35,239 --> 00:34:37,759 Speaker 1: also the reorganization. It's going to be interesting to see 642 00:34:37,760 --> 00:34:40,399 Speaker 1: how much detail he actually gives. There's been a lot 643 00:34:40,480 --> 00:34:43,240 Speaker 1: reported over the last twenty four hours about new business 644 00:34:43,280 --> 00:34:46,560 Speaker 1: lines that would be formed. Does that change the reporting structure? 645 00:34:46,680 --> 00:34:49,360 Speaker 1: Does he set new targets? Does he set new targets 646 00:34:49,520 --> 00:34:52,239 Speaker 1: today or does he set them into next year, which 647 00:34:52,320 --> 00:34:56,000 Speaker 1: is more likely given typically these banks set expectations at 648 00:34:56,000 --> 00:34:59,120 Speaker 1: the beginning of the year for investors. And are any 649 00:34:59,200 --> 00:35:03,120 Speaker 1: of his show plans, especially for that consumer business going 650 00:35:03,200 --> 00:35:06,560 Speaker 1: to change? And whatever I think about reorganizations, Shinali, I 651 00:35:06,640 --> 00:35:10,200 Speaker 1: think about is this going to save a company money? 652 00:35:10,280 --> 00:35:12,600 Speaker 1: I mean, how much of an issue is cost control 653 00:35:12,719 --> 00:35:16,000 Speaker 1: for Goldman SACS. What's interesting about that is Goldman Sachs 654 00:35:16,080 --> 00:35:18,480 Speaker 1: is running more efficiently than some of its peers, namely 655 00:35:18,560 --> 00:35:22,160 Speaker 1: Morgan Stanley. Morgan Stanley has made a couple of acquisitions, 656 00:35:22,320 --> 00:35:26,640 Speaker 1: so their efficiency ratio is higher. However, investors have been 657 00:35:26,719 --> 00:35:29,920 Speaker 1: rewarding Morgan Stanley in a much bigger way. They're actually 658 00:35:30,000 --> 00:35:32,560 Speaker 1: the richest when you look at how they're trading compared 659 00:35:32,600 --> 00:35:35,640 Speaker 1: to book value of all the big six banks. So 660 00:35:35,760 --> 00:35:38,320 Speaker 1: investors really like that wealth business. They really liked the 661 00:35:38,320 --> 00:35:42,400 Speaker 1: acquisitions James Gorman has made in the strategies outlined. Goldman, however, 662 00:35:42,520 --> 00:35:45,200 Speaker 1: is trading below book value and so it's cheaper than 663 00:35:45,239 --> 00:35:49,400 Speaker 1: both JP Morgan and Morgan Stanley. So there's something that 664 00:35:49,800 --> 00:35:51,880 Speaker 1: he needs to do David Salman needs to do to 665 00:35:52,000 --> 00:35:55,920 Speaker 1: really change investors perspectives here about the direction of travel 666 00:35:56,040 --> 00:35:59,120 Speaker 1: for Goldman SACS. How much change of perspective do you 667 00:35:59,160 --> 00:36:01,560 Speaker 1: think we're going to get from the earnings that are 668 00:36:01,560 --> 00:36:06,360 Speaker 1: going to be reported this morning? Which uh aspects of 669 00:36:06,719 --> 00:36:09,200 Speaker 1: the banking business are we expecting are going to be 670 00:36:09,280 --> 00:36:13,000 Speaker 1: doing well? Which units are underperforming that we think Goldman 671 00:36:13,120 --> 00:36:16,480 Speaker 1: Sachs does what Goldman Sachs does best, which is investment, 672 00:36:16,520 --> 00:36:20,680 Speaker 1: banking and trading. So the expectations are very interesting. If 673 00:36:20,719 --> 00:36:23,560 Speaker 1: they don't beat those expectations or at least coming in line. 674 00:36:23,920 --> 00:36:26,320 Speaker 1: I think investors would be a little bit disappointed because 675 00:36:26,360 --> 00:36:29,600 Speaker 1: they tend to be so competitive and they are combining investment, 676 00:36:29,640 --> 00:36:32,560 Speaker 1: banking and trading under one business under this re ord. 677 00:36:33,080 --> 00:36:36,560 Speaker 1: So with that said, what about the rest of it, asset, 678 00:36:36,760 --> 00:36:40,680 Speaker 1: wealth and consumer? How do you set expectations around how 679 00:36:40,760 --> 00:36:42,920 Speaker 1: well those businesses are supposed to be in a tough 680 00:36:43,000 --> 00:36:45,960 Speaker 1: macro economic environment and the type of investment that they're 681 00:36:46,000 --> 00:36:48,840 Speaker 1: willing to put in the business. Again, Golden's efficiency is 682 00:36:48,920 --> 00:36:52,200 Speaker 1: better than Piers this quarter alone, they're supposed to bring 683 00:36:52,239 --> 00:36:54,800 Speaker 1: in returns on equity that are lower than Morgan Stanley 684 00:36:54,960 --> 00:36:57,680 Speaker 1: has reported. But let's see if they punch about their weight, 685 00:36:57,719 --> 00:37:00,520 Speaker 1: and let's see if investors are reward that the cycle. 686 00:37:00,800 --> 00:37:03,560 Speaker 1: Investors have been rewarding the big consumer businesses, not the 687 00:37:03,640 --> 00:37:06,719 Speaker 1: investment banks. And of course Goldman's acts doesn't have that 688 00:37:06,800 --> 00:37:10,720 Speaker 1: big consumer business that is benefiting from this UH wave 689 00:37:10,800 --> 00:37:14,160 Speaker 1: of higher interest rates. Although we did get that word 690 00:37:14,719 --> 00:37:18,520 Speaker 1: just before this earnings comes out that Goldman is going 691 00:37:18,560 --> 00:37:21,600 Speaker 1: to be starting this new high yield savings account with Apple. 692 00:37:22,080 --> 00:37:25,680 Speaker 1: Could that help to bolster the consumer sign and give 693 00:37:25,760 --> 00:37:28,560 Speaker 1: them a little more market share. Perhaps it's interesting at 694 00:37:28,600 --> 00:37:31,320 Speaker 1: this point it's not market share that investors are clamoring 695 00:37:31,400 --> 00:37:34,040 Speaker 1: for its profitability. And the thing about it is, yes, 696 00:37:34,120 --> 00:37:37,720 Speaker 1: Goldman's acts has some of the most competitive savings rates 697 00:37:37,840 --> 00:37:41,320 Speaker 1: out there, but that comes at a cost, and so 698 00:37:41,760 --> 00:37:45,600 Speaker 1: they have very interesting partnerships General Motors, Apple, Apple has 699 00:37:45,640 --> 00:37:48,920 Speaker 1: been expanding their partnership. Apple has been very selective about 700 00:37:48,960 --> 00:37:52,080 Speaker 1: its financial partners and so in theory, it would give 701 00:37:52,160 --> 00:37:54,360 Speaker 1: Goldman a competitive edge to get that close to a 702 00:37:54,400 --> 00:37:57,719 Speaker 1: big tech company with such huge financial ambitions. But if 703 00:37:57,760 --> 00:38:00,319 Speaker 1: you do have such a high savings rate, you're paying 704 00:38:00,400 --> 00:38:03,439 Speaker 1: for that, and investors right now are not thrilled about 705 00:38:03,440 --> 00:38:06,640 Speaker 1: the trajectory of the profitability at that consumer bank. All right, 706 00:38:06,640 --> 00:38:08,680 Speaker 1: we're gonna get a lot more details. Seven thirty Wall 707 00:38:08,719 --> 00:38:11,160 Speaker 1: Street Time is when we're expecting Goldman Sex to open 708 00:38:11,239 --> 00:38:12,879 Speaker 1: its books, and it is going to be a very 709 00:38:13,040 --> 00:38:16,200 Speaker 1: interesting conference call with so much news flow coming in 710 00:38:16,360 --> 00:38:19,520 Speaker 1: on this company ahead of these earnings. Shinali Bassek, Global 711 00:38:19,560 --> 00:38:22,759 Speaker 1: financial correspondent for Bloomberg News. Thanks as always for keep 712 00:38:22,880 --> 00:38:25,480 Speaker 1: us on the top of what's happening in that sector. 713 00:38:25,640 --> 00:38:28,719 Speaker 1: Karen Verry, Nathan, thank you. It isive three on Wall 714 00:38:28,800 --> 00:38:31,280 Speaker 1: Street Time for the Bloomberg Law report it has granted 715 00:38:31,280 --> 00:38:35,760 Speaker 1: you buy American Arbitration Association business disputes are inevitable. Brazil 716 00:38:35,840 --> 00:38:39,600 Speaker 1: Fouster with the American Arbitration Association, the global leader in 717 00:38:39,640 --> 00:38:43,279 Speaker 1: alternative dispute resolution for over ninety years. More in a 718 00:38:43,440 --> 00:38:46,080 Speaker 1: dr dot org. Let's get to the legal stories we're 719 00:38:46,120 --> 00:38:53,279 Speaker 1: watching this morning. From Bloomberg's Jeff Bellinger. American Airlines passengers 720 00:38:53,320 --> 00:38:56,439 Speaker 1: asked the federal court for preliminary approval of a deal 721 00:38:56,560 --> 00:38:59,600 Speaker 1: that would fully refund baggage fees to customers who have 722 00:38:59,680 --> 00:39:02,320 Speaker 1: been promise they could check their luggage at NOPE costs. 723 00:39:02,400 --> 00:39:04,680 Speaker 1: The state judge and Maryland voided the states one of 724 00:39:04,719 --> 00:39:08,320 Speaker 1: a cond texts on digital advertising, ruling that it violates 725 00:39:08,360 --> 00:39:11,920 Speaker 1: the US Constitution and a federal law protecting many forms 726 00:39:12,000 --> 00:39:16,000 Speaker 1: of online commerce from taxation. Abortion providers in North Carolina 727 00:39:16,080 --> 00:39:18,719 Speaker 1: asked the state trial court to block enforcement of a 728 00:39:18,800 --> 00:39:22,960 Speaker 1: law mandating that only doctors can prescribe pills to induce abortion. 729 00:39:23,080 --> 00:39:27,760 Speaker 1: Bloomberg Law everything you need, all on one legal research platform, 730 00:39:27,960 --> 00:39:32,480 Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more 731 00:39:32,560 --> 00:39:36,480 Speaker 1: at Bloomberg law dot com. Ry Jeff, thank you now. 732 00:39:36,520 --> 00:39:39,520 Speaker 1: Another legal's news that we're watching this morning. The January 733 00:39:39,600 --> 00:39:42,600 Speaker 1: six Committee voted to subpoena Donald Trump to testify and 734 00:39:42,719 --> 00:39:46,080 Speaker 1: provide documents about his actions on January six. For more, 735 00:39:46,120 --> 00:39:49,800 Speaker 1: Bloomberg's David Weston spoke with Case Western law professor Jonathan 736 00:39:49,880 --> 00:39:54,560 Speaker 1: Adler about the possibility of the former president actually testifying. Well, 737 00:39:54,560 --> 00:39:57,320 Speaker 1: I think that really depends on whether or not the 738 00:39:57,400 --> 00:40:00,920 Speaker 1: committee and Trump are going to come to an agreement 739 00:40:01,040 --> 00:40:03,480 Speaker 1: or able to come to an agreement. Um, you know 740 00:40:03,560 --> 00:40:07,360 Speaker 1: there there there is precedent for a committee subpoenaing a 741 00:40:07,600 --> 00:40:12,120 Speaker 1: former president and that person testifying, But that testament that 742 00:40:12,280 --> 00:40:17,920 Speaker 1: the president was when a former president agreed to testify 743 00:40:18,040 --> 00:40:21,319 Speaker 1: or complied with the subpoena. In this case, because it's 744 00:40:21,360 --> 00:40:25,359 Speaker 1: the fall of two and we expect Congress to chair 745 00:40:25,440 --> 00:40:27,920 Speaker 1: or the House of Representatives to change hands in the 746 00:40:28,000 --> 00:40:31,520 Speaker 1: coming election, there's not a lot of time for legal wrangling. 747 00:40:31,719 --> 00:40:35,200 Speaker 1: So if former president fromp were to resist the subpoena, 748 00:40:36,040 --> 00:40:38,440 Speaker 1: it's quite likely that he would be able to run 749 00:40:38,480 --> 00:40:40,640 Speaker 1: off the clock. So it really depends on whether or 750 00:40:40,680 --> 00:40:44,200 Speaker 1: not but he wants to take this opportunity to put 751 00:40:44,239 --> 00:40:47,759 Speaker 1: out his side of the events of January six, or 752 00:40:47,880 --> 00:40:50,840 Speaker 1: he doesn't, So that suggests that it might well be 753 00:40:50,960 --> 00:40:52,960 Speaker 1: that it's more the court of public opinion that the 754 00:40:53,280 --> 00:40:55,960 Speaker 1: committee is really trying to appeal to rather than a 755 00:40:56,080 --> 00:40:59,759 Speaker 1: judicial court. There is, however, a udicial proceeding in a 756 00:41:00,000 --> 00:41:03,320 Speaker 1: Florida obviously involving all those documents that were seized or 757 00:41:03,320 --> 00:41:06,200 Speaker 1: assumed to a search warrant, and now the president, the 758 00:41:06,239 --> 00:41:08,239 Speaker 1: former president is taken up to the Supreme Court the 759 00:41:08,320 --> 00:41:10,640 Speaker 1: question of exactly who gets access to review some of 760 00:41:10,640 --> 00:41:14,080 Speaker 1: the classified documents. Tell us about that proceeding, because it 761 00:41:14,200 --> 00:41:16,000 Speaker 1: got a lot of attention, I must say I my 762 00:41:16,080 --> 00:41:18,560 Speaker 1: reaction was, I was not so very very surprised that 763 00:41:18,600 --> 00:41:21,040 Speaker 1: the Supreme Court's ruling, which did not have a descent 764 00:41:21,160 --> 00:41:23,799 Speaker 1: attached to sort of a simple order. No, I mean, 765 00:41:24,120 --> 00:41:27,160 Speaker 1: the indications were that the Supreme Court was not going 766 00:41:27,200 --> 00:41:29,840 Speaker 1: to take an interest in this. So, after taking some 767 00:41:30,000 --> 00:41:34,080 Speaker 1: time to file something, Trump's attorneys ultimately did file a 768 00:41:34,719 --> 00:41:38,319 Speaker 1: the emotion with the Supreme Court, seeking to vacate at 769 00:41:38,400 --> 00:41:42,840 Speaker 1: least part of the eleven Circuit's decision. Um. The Supreme 770 00:41:42,880 --> 00:41:46,160 Speaker 1: Court didn't act right away. They gave the Justice Department 771 00:41:46,200 --> 00:41:50,440 Speaker 1: a week to respond, very clear indication the court didn't 772 00:41:50,440 --> 00:41:53,279 Speaker 1: think it was urgent, not at all surprised at the 773 00:41:53,360 --> 00:41:58,000 Speaker 1: court without any noted descent. I'm declined to grant that application. 774 00:42:00,480 --> 00:42:03,719 Speaker 1: And as case Western Law Professor Jonathan Adler's because the 775 00:42:03,760 --> 00:42:07,560 Speaker 1: Bloomberg's David Weston Attorneys can find exceptional legal research and 776 00:42:07,600 --> 00:42:10,560 Speaker 1: business development tools at Bloomberg Law dot com and on 777 00:42:10,640 --> 00:42:14,680 Speaker 1: the Bloomberg terminal at b law Go. Futures this morning 778 00:42:14,760 --> 00:42:17,359 Speaker 1: are on the rise. S ANDP futures at forty five 779 00:42:17,400 --> 00:42:20,440 Speaker 1: points down, futures of two hundred eighty seven nasdack futures 780 00:42:20,480 --> 00:42:23,480 Speaker 1: of one D seventy two ten year treasury down three 781 00:42:23,560 --> 00:42:26,040 Speaker 1: thirties seconds, you know, four point out two percent, and 782 00:42:26,120 --> 00:42:28,640 Speaker 1: they yield on the two year four point four or 783 00:42:28,719 --> 00:42:31,600 Speaker 1: five percent nine max. Screwed oil this morning moving lower, 784 00:42:31,719 --> 00:42:33,680 Speaker 1: down about a third of a percent or thirty two 785 00:42:33,760 --> 00:42:37,200 Speaker 1: cents at eighty five dollars fourteen cents of barrel and 786 00:42:37,400 --> 00:42:40,000 Speaker 1: comex s gold is down four tents of up percent. 787 00:42:40,080 --> 00:42:42,360 Speaker 1: Still ahead on Bloomberg daybreak and check on the business 788 00:42:42,400 --> 00:42:44,960 Speaker 1: headlines and all the news you need to start your day. 789 00:42:45,440 --> 00:42:46,839 Speaker 1: And this is Bloomberg