WEBVTT - Bloomberg Daybreak: September 29, 2022 - Hour 2 (Radio) 0:00:01.160 --> 0:00:04.480 Fly from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:04.559 --> 0:00:08.319 Daybreak for Thursday, September twenty nine two. Coming up this hour, 0:00:08.680 --> 0:00:11.719 Hurricane Ian rips across Florida as one of the strongest 0:00:11.760 --> 0:00:14.520 storms ever to hit the US mainland. The Pounder resumes 0:00:14.520 --> 0:00:17.440 its fall as the UK holds firm on its fiscal plans, 0:00:17.720 --> 0:00:21.800 US future slide. Treasury yields rise following yesterday's Wall Street rally, 0:00:21.880 --> 0:00:24.840 and thousands of Amazon workers are getting races. The New 0:00:24.920 --> 0:00:28.160 York City Council is deciding whether the band's solitary confinement 0:00:28.240 --> 0:00:30.960 in jails. Plus, the US Senate is ready to pass 0:00:31.040 --> 0:00:33.560 the bill that will keep the government open. I'm Michael 0:00:33.560 --> 0:00:36.240 barn More Ahead, I'm John Stash Hour and sports Aaron 0:00:36.360 --> 0:00:39.640 Josh hit his record time sixty one abern and Yankee 0:00:39.680 --> 0:00:42.040 went in Toronto. A big comeback win for the man 0:00:44.560 --> 0:00:48.479 that's all strady Ahead on Bloomberg Daybreak on Bloomberg eleven, 0:00:48.520 --> 0:00:53.040 Free on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:53.040 --> 0:00:56.760 one O six one, Boston, Bloomberg nine sixties and Francisco 0:00:57.240 --> 0:01:00.200 Sirius x M one nineteen and around the World. Old 0:01:00.240 --> 0:01:03.720 on Bloomberg Radio dot com and via the Bloomberg Business App. 0:01:07.480 --> 0:01:10.760 Good morning, I'm Nathan Hagar and I'm Karen Moscow and 0:01:10.880 --> 0:01:14.000 US Dock Index futures are following this morning. We are 0:01:14.000 --> 0:01:15.880 coming up to six o one on Wall Street, and 0:01:15.959 --> 0:01:18.679 we check the markets every fifteen minutes throughout the trading day. 0:01:18.720 --> 0:01:22.440 On Bloomberg. SNP futures down thirty two points, now futures 0:01:22.440 --> 0:01:26.200 down two hundred eighteen. NAS deck futures down one three. 0:01:26.560 --> 0:01:29.240 The decks in Germany is down one point to per cent. 0:01:29.319 --> 0:01:32.119 The ten year treasury down twenty six thirty seconds, held 0:01:32.160 --> 0:01:34.319 three point three percent in the yield on the two 0:01:34.440 --> 0:01:37.559 year four point to one percent. Nine x screwed oil 0:01:37.680 --> 0:01:39.920 up three tens per cent, or twenty seven cents at 0:01:39.959 --> 0:01:42.720 eighty two dollars forty two cents in barrel, British pound 0:01:42.760 --> 0:01:45.880 one point eight six five against the dollar. Nathan, Karen, 0:01:45.920 --> 0:01:47.600 We'll have more on markets in a minute, but first 0:01:47.640 --> 0:01:50.280 let's get you the latest on Hurricane Ian. It crashed 0:01:50.280 --> 0:01:53.559 into Florida yesterday, bringing massive storm surgeon, knocking up power 0:01:53.600 --> 0:01:56.720 to more than two million homes and businesses. President Biden 0:01:56.720 --> 0:01:59.760 says the federal government stands ready to help. That includes 0:01:59.800 --> 0:02:03.880 this fasten hundreds of femal personnel and activating thousands of 0:02:04.000 --> 0:02:07.880 National Guard members. I've also developed a searching recipe team 0:02:07.880 --> 0:02:11.440 and deployed them for mulmibile federises season, and then they've 0:02:11.480 --> 0:02:14.080 already on the ground. We're ready to help. President Biden 0:02:14.120 --> 0:02:16.919 is also urging Florida residents to follow all warnings from 0:02:16.919 --> 0:02:20.000 local officials. Ian has weekend since it hit land. It 0:02:20.120 --> 0:02:24.600 is now a tropical storm with top winds around Let's 0:02:24.600 --> 0:02:28.240 get more on the track now with Bloomberg. Metrologists drobed Caroline, Nathan, Karen, 0:02:28.280 --> 0:02:31.280 and Ian now affecting central and northeastern Florida. It is 0:02:31.320 --> 0:02:33.440 moving off towards the north and east. This morning it 0:02:33.480 --> 0:02:36.600 will bring win gus over sixty miles two portions of 0:02:36.639 --> 0:02:39.799 northeastern Florida. Now, the system is forecast to move out 0:02:39.840 --> 0:02:42.240 over the waters of the Atlantic and it may actually 0:02:42.240 --> 0:02:45.840 regain some strength before moving back inland over Georgia and 0:02:45.880 --> 0:02:49.080 the Carolinas in the next thirty six hours. Again, it 0:02:49.080 --> 0:02:52.600 continues to produce prodigious rainfall. We're expecting anywhere from five 0:02:52.639 --> 0:02:55.120 to ten inches of rain north of the storm today, 0:02:55.440 --> 0:02:58.640 with additional rainfall into the weekend. Yesterday, it went ashore 0:02:58.720 --> 0:03:01.520 in southwestern Florida with winds of over a hundred and 0:03:01.560 --> 0:03:04.040 fifty miles an hour and a storm surge that caused 0:03:04.080 --> 0:03:07.360 some historic flooding in the Naples area. Also around Fort Myers, 0:03:07.400 --> 0:03:11.040 Fort Myers Beach, Nita Beach, all those areas saw significant flooding. 0:03:11.320 --> 0:03:13.640 Nathan and Karen, All right, Rob, thank you, and of 0:03:13.680 --> 0:03:16.160 course I'll be checking in with the Bloomberg meteorologists round 0:03:16.200 --> 0:03:19.600 Caroline throughound the morning right here on Bloomberg Radio. Now 0:03:19.639 --> 0:03:22.320 back to the volatile markets. We're seeing the pound snap 0:03:22.320 --> 0:03:25.440 a two day gain following that historic bond buying program 0:03:25.440 --> 0:03:27.600 from the Bank of England. Let's get the very latest 0:03:27.680 --> 0:03:30.920 from London with Bloomberg's un Pats. Good morning, Uen, Good 0:03:30.919 --> 0:03:34.520 morning Karen, Nathan. After yesterday's central bank driven rally, UK stock, 0:03:34.600 --> 0:03:38.760 sovereign bonds and the pounds all lower this morning. Prominister 0:03:38.920 --> 0:03:43.000 Liz Trust today defending her government's huge fiscal stimulus package, 0:03:43.280 --> 0:03:46.840 blaming global economic pressures for the market fallout from her 0:03:46.880 --> 0:03:50.040 announcement last week. She says the tax cuts, the biggest 0:03:50.160 --> 0:03:54.320 in fifty years, are the right plan for the UK. Today. 0:03:54.360 --> 0:03:56.720 Slide puts the pound on track for its worst month 0:03:56.800 --> 0:03:59.280 since Britain voted to leave the European Union more than 0:03:59.360 --> 0:04:03.160 six years ago. In London, I'm spoom book daybreak, thanks you, 0:04:03.200 --> 0:04:06.160 and former US Treasury Secretary Larry Summers is weighing in 0:04:06.200 --> 0:04:08.960 on the turmoil and markets. He's welcoming intervention from the 0:04:09.000 --> 0:04:12.200 Bank of England, but says the UK still faces serious issues. 0:04:12.600 --> 0:04:15.160 I think it was the right thing to do given 0:04:15.200 --> 0:04:19.279 the technical factors that are that had arisen UH in 0:04:19.400 --> 0:04:24.159 the market, and it's obviously brought some important stability to 0:04:24.400 --> 0:04:29.200 the guilt market. It does not resolve any of the 0:04:29.240 --> 0:04:35.760 fundamental contradictions in UH British policy. Former Treasury Secretary Larry 0:04:35.760 --> 0:04:38.279 Summer spoke with Bloomberg Gowers after the Bank of England 0:04:38.320 --> 0:04:42.320 pledged unlimited purchases of long dated government bonds. Well, the 0:04:42.320 --> 0:04:45.400 White House is alarmed over the market turmoil triggered by 0:04:45.480 --> 0:04:48.599 the new UK Nathan Now. It's encouraging Prime Minister list 0:04:48.680 --> 0:04:51.920 Trust to dial back or economic plans to get details 0:04:51.920 --> 0:04:54.320 from Bloomberg's Amy Morriss from our not e on one 0:04:54.320 --> 0:04:58.080 newsroom in Washington. The plunge in UK assets earlier this 0:04:58.120 --> 0:05:02.080 week contributed to declines in US treasuries. Sources tell Bloomberg News, 0:05:02.240 --> 0:05:06.000 Treasury officials are concerned at the volatility in the markets, 0:05:06.040 --> 0:05:08.000 and they're working through the I m F to put 0:05:08.000 --> 0:05:12.240 more pressure on Trust's government. Treasury Secretary Janet Yellen downplay 0:05:12.279 --> 0:05:16.359 the turbulence, but Commerce Secretary Gina Raimondo called Trust's approach 0:05:16.400 --> 0:05:21.080 of cutting taxes while increasing spending misguided. Trust's government argues 0:05:21.160 --> 0:05:24.480 it's program will boost long term growth in Washington, I'm 0:05:24.520 --> 0:05:27.039 maybe more as Bloomberg Daybreak, Thanks, and you've got some 0:05:27.080 --> 0:05:29.839 personnel news out of Washington this morning. Sources say Treasury 0:05:29.880 --> 0:05:32.280 Secretary Janet Yellen has told the White House she will 0:05:32.320 --> 0:05:35.400 stay past the November elections. Her desire to stay comes 0:05:35.400 --> 0:05:38.400 as the Biden administration prepares for potential cabinet and other 0:05:38.440 --> 0:05:41.680 senior personnel changes. Those decisions may depend on how well 0:05:41.800 --> 0:05:45.279 or poorly Democrats do in the elections. Meantime, Nathan A 0:05:45.279 --> 0:05:48.440 House proposal to restrict stunk trading by government officials has 0:05:48.520 --> 0:05:51.080 hit a snag. The Bill Wooker tail stock ownership and 0:05:51.080 --> 0:05:54.200 trading by members of Congress, the president, vice president, Supreme 0:05:54.240 --> 0:05:58.120 Court justices, and other high ranking officials, but it's currently 0:05:58.160 --> 0:06:01.720 being held up by Democratic in The bill's sponsors introduce 0:06:01.760 --> 0:06:05.400 the legislation yesterday, but multiple House officials familiar with the 0:06:05.440 --> 0:06:09.080 discussion said any floor action on the measure has been shelved, 0:06:09.120 --> 0:06:12.000 at least for now. Lawmakers are scheduled to leave Washington 0:06:12.040 --> 0:06:14.840 this week until after the November election. Let's turn to 0:06:14.920 --> 0:06:18.360 geopolitics now, Karen, the US wants to resume talks with China. 0:06:18.440 --> 0:06:21.160 Ambassador Nicolas Burns is calling on the nation to reopen 0:06:21.200 --> 0:06:24.279 discussions that were halted after how Speaker Nancy Pelosi's visit 0:06:24.320 --> 0:06:27.320 to Taiwan. We do not seek conflict, and we're gonna 0:06:27.320 --> 0:06:31.159 try to compete with China vigorously and then work with 0:06:31.279 --> 0:06:33.840 China where we can, and we hope the Chinese will reciprocate. 0:06:33.880 --> 0:06:38.680 They've frozen a lot of our dialogues since Speaker Pelosi's visit. 0:06:39.040 --> 0:06:42.279 Our message to the Chinese is, let's talk open these 0:06:42.320 --> 0:06:45.760 dialogues and let's move forward. Ambassador Nicholas Burns spoke at 0:06:45.760 --> 0:06:48.560 the Milk and Institute Asia Summit in Singapore. He says 0:06:48.560 --> 0:06:50.880 the US needs stork of China on issues like climate 0:06:50.960 --> 0:06:54.640 change and health and incorporate news Nathan Amazon is boosting 0:06:54.640 --> 0:06:57.520 pay for hourly workers in the US. The online retailing 0:06:57.520 --> 0:07:00.559 giants said the move will raise the average earting wage 0:07:00.560 --> 0:07:04.480 for most frontline employees and warehousing and transportation to nineteen 0:07:04.520 --> 0:07:08.360 dollars an hour. Again, futures are lower this morning. S 0:07:08.400 --> 0:07:11.240 and P futures down thirty nine points, staff futures down 0:07:11.240 --> 0:07:15.400 two nine and nasdack futures down one. Straight ahead your 0:07:15.440 --> 0:07:18.280 latest local headlines plus a check of sports, and this 0:07:18.640 --> 0:07:24.120 is Bloomberg. I mean to Karen six o seven on 0:07:24.160 --> 0:07:27.080 Wall Street, fifty four degrees in Central Park slogan in 0:07:27.120 --> 0:07:30.520 on New Jersey Transits Northeast cord or twenty minute delays. 0:07:30.760 --> 0:07:32.840 Tell you why in traffic. First Michael Barr with what 0:07:32.880 --> 0:07:34.600 else is going on in New York and around the world. 0:07:34.640 --> 0:07:36.880 Good morning, Michael, Good morning Nathan. The New York City 0:07:36.880 --> 0:07:40.680 Council is deciding whether to band solitary confinement in jails. 0:07:41.040 --> 0:07:43.920 Demonstrators on both sides clashed on the steps of City 0:07:43.920 --> 0:07:46.720 Hall ahead of a hearing on the bill. Any Bosco 0:07:46.960 --> 0:07:51.040 of the Correction Officers Benevolent Association says that the notion 0:07:51.160 --> 0:07:55.360 that we're torturing individuals in our system is not the case. However, 0:07:55.480 --> 0:07:58.800 Democratic City Council Member Tiffany Kavan argued, we need to 0:07:58.800 --> 0:08:02.400 find out what is the of the violence. New Jersey Bank, 0:08:02.640 --> 0:08:06.040 a New Jersey bank, agreed to pay thirteen million dollars 0:08:06.080 --> 0:08:10.760 to resolve claims of discriminatory and lending practices. Lakeland Bank 0:08:10.960 --> 0:08:14.000 has been ranked best bank in New Jersey, but U 0:08:14.040 --> 0:08:17.320 S Attorney Phillips Sollinger says it's not for people of 0:08:17.360 --> 0:08:20.480 color and at least three counties. If you lived in 0:08:20.520 --> 0:08:24.360 the black or Hispanic neighborhood in these counties, you likely 0:08:24.400 --> 0:08:28.560 have little opportunity to apply for, let alone obtain a 0:08:28.640 --> 0:08:32.360 mortgage from Lakeland Bank. U S Attorney Phillips Slingers said 0:08:32.400 --> 0:08:36.520 Lakeland Bank redline these neighborhoods refused to service them in 0:08:36.600 --> 0:08:39.960 violation of the Fair Housing Act. The U. S. Senate 0:08:40.040 --> 0:08:41.800 is ready to pass the bill that will keep the 0:08:41.800 --> 0:08:45.800 government open and spending until at least the middle of December. 0:08:46.280 --> 0:08:50.280 Democratic Representative Jim Governor of Massachusetts thanks the government funding 0:08:50.320 --> 0:08:52.760 bill will pass by tomorrow. We're going to do everything 0:08:52.800 --> 0:08:54.880 we can to make sure we don't have a government shutdown. 0:08:55.000 --> 0:08:56.760 Remember the last time we had a government shutdown. The 0:08:56.760 --> 0:08:59.080 Republicans controlled the White House, the House, and the Senate. 0:08:59.280 --> 0:09:01.640 I mean that would your responsible, We would we would 0:09:01.720 --> 0:09:03.600 we would not do that. And the fact of the 0:09:03.600 --> 0:09:05.160 matter is there's a lot of stuff that we I 0:09:05.200 --> 0:09:07.240 would like to see in a cr and there's a 0:09:07.240 --> 0:09:09.560 lot of stuff, you know, that I would like to 0:09:09.559 --> 0:09:11.400 add on, and I know I can't get it best 0:09:11.400 --> 0:09:13.280 to Senate. So we have to do the best we 0:09:13.400 --> 0:09:16.200 can working with the people that we we have to 0:09:16.200 --> 0:09:20.160 deal with. Representative McGovern spoke on sound On, which airs 0:09:20.200 --> 0:09:23.440 at five pm weekdays on Bloomberg. Both parties agreed to 0:09:23.480 --> 0:09:27.320 a temporary continuing spending bill that will include disaster aid 0:09:27.400 --> 0:09:31.640 for weather battered Kentucky, Alabama, Texas, Alaska, and Puerto Rico. 0:09:32.000 --> 0:09:35.400 Vice President Kamala Harris is in South Korea. Harris met 0:09:35.440 --> 0:09:38.560 with the South Korean president reinforced the US South Korean 0:09:38.600 --> 0:09:42.480 alliance for seven decades. The alliance between the United States 0:09:42.640 --> 0:09:45.640 and the Republic of Korea has been a lynchpin a 0:09:45.760 --> 0:09:49.480 security and prosperity. Vice President Harris later traveled to the 0:09:49.640 --> 0:09:54.320 demilitarized zone that separates North and South Korea. Global News 0:09:54.320 --> 0:09:56.679 twenty four hours a day on air and on Bloomberg 0:09:56.720 --> 0:09:59.679 quicktake powered by more than twenty seven hundre journalist and 0:09:59.679 --> 0:10:02.079 analyst to more than a hundred twenty countries. I'm Michael 0:10:02.080 --> 0:10:09.560 barn This is Bloomberg, Nathan. Thanks Michael. Almost six ten 0:10:09.640 --> 0:10:12.240 on Wall Street time for the Bloomberg Sports Update, and 0:10:12.240 --> 0:10:16.520 they finally got to sixty one. John Stenshower and the Fit. 0:10:16.559 --> 0:10:18.760 Perhaps you heard Aaron Judge been trying to get that 0:10:18.880 --> 0:10:23.480 sixty feet homer seventh straight times he was unable to 0:10:23.559 --> 0:10:26.439 hit a home run. As networks broke into programming to 0:10:26.480 --> 0:10:29.400 show us that bats. His mother and Roger Maris's son 0:10:29.840 --> 0:10:32.640 crossed borders to watch him in Toronto the last inning, 0:10:32.760 --> 0:10:35.400 last night seventh in ain't Tim May's on the man, 0:10:35.480 --> 0:10:38.520 Here's John Stirling w f an don't go? Did he 0:10:38.679 --> 0:10:42.959 loved it? Us high hell us part us gone number 0:10:43.200 --> 0:10:48.839 sixty one height times Roger Maris for the American League 0:10:48.920 --> 0:10:53.560 single season record. Who was sixty run home run? HiT's 0:10:53.600 --> 0:10:56.800 a two run Judge and Black and Yankee you American 0:10:56.880 --> 0:10:58.680 League record? Of course, the reason this has gotten so 0:10:58.760 --> 0:11:01.600 much attention, it's also the so called clean record. The 0:11:01.640 --> 0:11:04.040 only ones to hit more in a season Barry Bonds, 0:11:04.040 --> 0:11:07.520 Mark McGuire Sammy Sosa, all of their seasons tainted by 0:11:07.600 --> 0:11:10.040 steroid use. Judge s seven games left now to try 0:11:10.040 --> 0:11:12.040 to get to sixty two. The outcome of the game 0:11:12.080 --> 0:11:15.360 fairly meaningless. That's why Aaron Boone had Anthony Rizzo managed 0:11:15.400 --> 0:11:17.360 the Yankees, who beat the Blue Jay's eighth to three 0:11:17.360 --> 0:11:20.160 after the Mets their game. Very meaningful is the Mets 0:11:20.160 --> 0:11:22.560 try to win the nl East. That means a bye. 0:11:22.640 --> 0:11:26.079 It means avoiding the Dodgers until the NLCS. They trailed 0:11:26.120 --> 0:11:29.640 Miami for nothing seventh any Edwardo Escobar to the rescue 0:11:29.640 --> 0:11:32.280 to run home in the seventh game, tying two run 0:11:32.320 --> 0:11:34.760 single in the eighth and game winning rb I hit 0:11:34.800 --> 0:11:37.400 of the tent Mets won five for just as Atlanta 0:11:37.520 --> 0:11:40.360 lost in ten in Washington. So the three game series 0:11:40.360 --> 0:11:42.960 begins tomorrow Atlanta with the Mets one game ahead. Whether 0:11:43.000 --> 0:11:45.400 it could be an issue for this series Jets madd officials. 0:11:45.440 --> 0:11:47.800 Zack Wilson returns from his knee injury to start Sunday 0:11:47.800 --> 0:11:51.360 in Pittsburgh. John Stashward Bloomberg, Sports, Nathan Thanks John SMP 0:11:51.480 --> 0:11:54.480 futures down thirty seven points, Staff futures down, Tunere forty one, 0:11:54.559 --> 0:11:57.199 Nastack futures down a hundred fifty four points, the ten 0:11:57.280 --> 0:12:01.000 year treasuries down twenty seven thirty seconds, the yield three 0:12:01.040 --> 0:12:07.640 point eight four percent. This is Bloomberg Bloomberg eleven three 0:12:07.640 --> 0:12:10.640 oh other. Sunshine up for sixties today, increasing high cloudiness 0:12:10.720 --> 0:12:13.520 tomorrow up for sixties. Light rain from the income is 0:12:13.600 --> 0:12:16.680 in Saturday afternoon. It'll stay rainy all weekend with highs 0:12:16.679 --> 0:12:23.160 in the mid sixties. Currently fifty four degrees. Markets headlines 0:12:23.160 --> 0:12:26.160 and breaking news twenty four hours a day at Bloomberg 0:12:26.240 --> 0:12:30.319 dot Com, the Bloomberg Business Outland at Bloomberg Quicktape. He's 0:12:30.320 --> 0:12:39.520 a Bloomberg Business Flash and I'm Karin Moscow. Risk off 0:12:39.600 --> 0:12:42.439 sentiment returning to markets as concerned about inflation and the 0:12:42.520 --> 0:12:45.240 risk of global recession over shadows the Bank of England's 0:12:45.240 --> 0:12:48.320 move to restore calm the pounds snapping a two day gain, 0:12:48.360 --> 0:12:50.559 and we checked the markets every fifteen minutes throughout the 0:12:50.600 --> 0:12:53.720 trading day on Bloomberg. Guess and p Futures down thirties 0:12:53.720 --> 0:12:57.200 six points this morning. Down features down two two announced 0:12:57.200 --> 0:13:00.120 back futures down one fifty. The debts in Germany is 0:13:00.160 --> 0:13:02.959 down one point three per cent. Ten Your treasury down 0:13:03.000 --> 0:13:06.280 twenty seconds. You have three point three percent yield on 0:13:06.320 --> 0:13:09.480 the two year four point to one percent. NIMEX screwed 0:13:09.520 --> 0:13:11.600 oil is up six tents per cent or fifty two 0:13:11.640 --> 0:13:14.080 cents at eighty two dollars sixty seven cents of barrel 0:13:14.320 --> 0:13:17.080 comex goal down eight ten percent or thirteen dollars twenty 0:13:17.120 --> 0:13:20.880 cents at sixteen fifty six ninety announce. The euro is 0:13:20.920 --> 0:13:23.240 at point in nine six nine two against the dollar. 0:13:23.320 --> 0:13:26.319 British found one point eight six zero and again one 0:13:26.720 --> 0:13:29.480 four point six eight. Bitcoin is down six tenths of 0:13:29.559 --> 0:13:32.800 a percent in nineteen thousand, four hundred dollars. And today 0:13:32.840 --> 0:13:34.920 we are watching for a third read on second quarter 0:13:35.040 --> 0:13:38.400 GDP as well as the weekly record on initial jobless claims. 0:13:38.440 --> 0:13:40.679 Both are at at eight thirty Wall Street time. That's 0:13:40.679 --> 0:13:43.360 a bloomberg business flash. Now here's Michael Barr with more 0:13:43.440 --> 0:13:46.439 on what's going on around the world. Michael Karen, thank 0:13:46.480 --> 0:13:49.080 you very much. Hurricane and has left the path of 0:13:49.160 --> 0:13:52.959 destruction in southwest Florida, trapping people and flooded homes, damaging 0:13:53.000 --> 0:13:56.720 the roof of a hospital intensive care unit, and knocking 0:13:56.720 --> 0:13:59.200 out power to two million people. I and now a 0:13:59.200 --> 0:14:02.240 tropical store m is aiming for the Atlantic coast. The 0:14:02.280 --> 0:14:06.800 Biden administration blasted Russia's attempt to legitimize its control of 0:14:06.920 --> 0:14:10.880 Ukrainian territories through what they're calling a stage vote to 0:14:10.960 --> 0:14:13.959 appear as if there is Russian loyalty in these towns. 0:14:14.360 --> 0:14:16.960 In baseball, the Yankees beat the Blue Jay's eight three, 0:14:17.000 --> 0:14:20.800 but more importantly, Aaron Judge it his sixty one home run, 0:14:20.880 --> 0:14:24.000 tying Roger Merris for the a L record. The Matt's 0:14:24.120 --> 0:14:27.240 Nationals and Giants one, The Red Sox beat the Orioles 0:14:27.240 --> 0:14:31.160 three one, The A's Lost. Global news twenty four hours 0:14:31.160 --> 0:14:34.400 a day on air end on Bloomberg Quicktake, powered by 0:14:34.440 --> 0:14:38.320 more than journalist and analysts more than a hundred twenty countries. 0:14:38.520 --> 0:14:41.440 I'm Michael bar and this is Bloomberg Natheran. Okay, Michael, 0:14:41.480 --> 0:14:43.600 thank you, at six nineteen on Wall Street Life from 0:14:43.640 --> 0:14:47.040 the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, And 0:14:47.080 --> 0:14:49.480 as we continue to follow the devastation brought by a 0:14:49.600 --> 0:14:52.680 now tropical storm Ian in Florida, we are watching a 0:14:52.880 --> 0:14:57.320 fiscal and monetary storm happening in the UK right now 0:14:57.360 --> 0:15:01.160 with new Prime Minister Liz trust Sing. I'm with tax 0:15:01.200 --> 0:15:04.560 cuts and the Bank of England responding with what looks 0:15:04.640 --> 0:15:08.960 like new stimulus. Let's bring in Bloomberg opinion calumnist Marcus Ashworth, 0:15:09.280 --> 0:15:12.480 who's been following this very closely. Marcus, it's great to 0:15:12.520 --> 0:15:14.240 have you with us. And it looks from this side 0:15:14.280 --> 0:15:16.600 of the pond like the new government and the Bank 0:15:16.640 --> 0:15:20.440 of England are on a collision course. Is that too 0:15:20.560 --> 0:15:23.400 strong a way to put it? Um, Yes, it is. 0:15:23.480 --> 0:15:27.200 I'm afraid okay. I think the Bank of England has 0:15:27.320 --> 0:15:30.480 has done exactly the right thing and it's stem the 0:15:30.600 --> 0:15:34.240 rock very quickly. If you actually know how much they 0:15:34.360 --> 0:15:38.080 bought last night, it was only about a billiard m 0:15:38.280 --> 0:15:40.920 just over and they continue to do this the next 0:15:41.120 --> 0:15:44.720 two weeks or so. I doubt they'll buy that much, 0:15:45.680 --> 0:15:48.960 probably ten, maybe a little bit more, but possibly quite 0:15:49.000 --> 0:15:52.840 a bit less compared to six bution they could in 0:15:53.000 --> 0:15:56.760 theory by which is the free floats. So I think 0:15:57.520 --> 0:16:01.720 the crisis is too early sets over. It's certainly a 0:16:01.720 --> 0:16:05.440 lot of damage limitations come in here. Um. I do 0:16:05.560 --> 0:16:08.280 think that the economics and politics needs to be separatet 0:16:08.280 --> 0:16:10.360 of here. Some of the economics of what the government's 0:16:10.360 --> 0:16:13.120 trying to do does make sense in the longer run. 0:16:13.480 --> 0:16:17.400 Clearly the presentation and the politics that was terrible. The 0:16:17.520 --> 0:16:20.520 presentation was was non existent, and there was a level 0:16:20.560 --> 0:16:23.400 of I guess you can have to call it arrogance, 0:16:23.800 --> 0:16:27.600 and certainly a lack of appreciation of how sensitive markets 0:16:28.200 --> 0:16:31.320 can be are and will continue to be and sudden 0:16:31.400 --> 0:16:34.680 changes in fiscal and economic policy need to be The 0:16:34.720 --> 0:16:36.960 picture needs to be rolled and everyone needs to be prepared, 0:16:37.000 --> 0:16:39.360 and it needs to be costed and funding in a 0:16:39.400 --> 0:16:42.000 way which people can get their heads around. That's what 0:16:42.080 --> 0:16:45.160 this government failed to do. The Bank of England, um, 0:16:45.200 --> 0:16:48.240 I've done pretty well. Perhaps they shouldn't have started their 0:16:48.280 --> 0:16:51.160 continent tightening program, they've had delayed that for a month. 0:16:51.520 --> 0:16:53.120 That could possibly do the thing. A little bit more 0:16:53.160 --> 0:16:56.600 delay um and and maybe they'll never get around to it, 0:16:56.640 --> 0:16:59.360 but certainly bar that, the Bank of England has managed 0:16:59.400 --> 0:17:02.840 to step in and say what was a very difficult 0:17:03.040 --> 0:17:05.600 situation pretty much unique the UK in the way the 0:17:05.680 --> 0:17:08.360 UK is structured with its pension fund and very long 0:17:08.400 --> 0:17:11.399 dated bond markets. So they've had to do what they 0:17:11.440 --> 0:17:13.120 need to do and they've done it very very successfully 0:17:13.160 --> 0:17:15.639 so far. And see some reaction that the Bank of 0:17:15.680 --> 0:17:19.280 England might be enabling the Trist's government by stepping in 0:17:19.440 --> 0:17:23.479 with this fine buying program while the new Prime Minister 0:17:23.720 --> 0:17:27.280 is doubling down on the tax cut regime. Is the 0:17:27.280 --> 0:17:30.520 Bank of England and enabling trust here? Now there's so 0:17:30.600 --> 0:17:32.440 much politics going on behind us. It's very if you 0:17:32.480 --> 0:17:34.720 have to filter out a lot of the a lot 0:17:34.720 --> 0:17:37.080 of stuff on inequality and whatever it is. The straightforward 0:17:37.080 --> 0:17:39.440 politics doesn't mean you have to agree with it. But 0:17:39.720 --> 0:17:41.639 you know what the government's trying to do. They are 0:17:42.040 --> 0:17:45.200 perfectly entitled the way. When they've done it, which clearly 0:17:45.240 --> 0:17:48.399 has been, the markets have taken umbrage out, particularly because 0:17:48.800 --> 0:17:50.679 it's clearly going to be they want to do an 0:17:50.680 --> 0:17:52.480 awful lot more and that's I think it's what scared 0:17:52.520 --> 0:17:55.399 the market more than anything. Uh, there wasn't quite the 0:17:55.440 --> 0:17:58.920 same demand structurally to take extra debt and they've they've 0:17:59.000 --> 0:18:01.840 not only increased it quite quickly, but they've clearly going 0:18:01.880 --> 0:18:03.640 to want to do a lot more. That that's what's 0:18:03.680 --> 0:18:06.640 caused the problem. It's more the future issuance than what 0:18:06.760 --> 0:18:08.800 may be come in the next year or so. But 0:18:08.880 --> 0:18:10.879 you know that the Bank of eng is doing what 0:18:10.880 --> 0:18:13.600 it's had to do for a financial stability point of view, 0:18:14.240 --> 0:18:16.400 that the overall numbers we're talking about here probably will 0:18:16.440 --> 0:18:18.639 not be very large at all. As I have, I 0:18:18.640 --> 0:18:20.760 am the beginning here, so I think there's a lot 0:18:20.800 --> 0:18:25.840 of politics going on trying to tidy the government with 0:18:26.200 --> 0:18:28.320 you know, kind of threaten the Bank of the independence 0:18:28.560 --> 0:18:31.600 some of its own fault. As again the presentation has 0:18:31.640 --> 0:18:34.000 been appalling, but I don't think the bankaving can be 0:18:34.200 --> 0:18:37.399 uh any very shapeful form blame there. They've done a 0:18:37.440 --> 0:18:40.080 magnificent job and we're very likely to happen. Telling about 0:18:40.080 --> 0:18:42.240 thirty seconds left here, Marcus, when we signed the proud 0:18:42.400 --> 0:18:45.000 earlier this week had a dollar three, now had a 0:18:45.080 --> 0:18:47.119 one oh eight handle. Where do you see the pound 0:18:47.119 --> 0:18:50.760 going at this point? Could we reach parody? We certainly couldn't, 0:18:50.800 --> 0:18:52.720 and that no one can can rule this out and 0:18:53.200 --> 0:18:56.639 structurally and dollar continues to rally, uh and there's no 0:18:56.680 --> 0:18:59.280 reason to suggest it won't for the moment until something 0:18:59.320 --> 0:19:00.920 in the US. For apes to make me new house 0:19:00.920 --> 0:19:03.480 a markism too clever, But that's because interest rates to 0:19:03.520 --> 0:19:05.720 go higher and are at some point that the Fed 0:19:05.800 --> 0:19:08.800 will have to pivot. But until they do, more points 0:19:08.840 --> 0:19:10.920 coming from all currencies, not just starting. I mean, it's 0:19:10.960 --> 0:19:13.240 the it's the un it's the yen, it's the euro, 0:19:13.680 --> 0:19:16.240 you name it. So starting just got a called a 0:19:16.280 --> 0:19:19.200 little bit of the sour on you say, going onto 0:19:19.240 --> 0:19:21.240 it and had its bad time. But the others will 0:19:21.280 --> 0:19:23.480 have their turn. I'm afraid in the dollars stay strong. 0:19:24.040 --> 0:19:26.320 Thanks so much Marcus for coming on with us this morning. 0:19:26.320 --> 0:19:31.240 Marcus Ashworth columnists for Bloomberg Opinion on the volatility in 0:19:31.280 --> 0:19:35.040 the UK market after Trusts government came out with its 0:19:35.080 --> 0:19:37.760 tax cuts on the Bank of England responded with a 0:19:37.800 --> 0:19:41.200 new bond buying program. Right now, SMP futures are down 0:19:41.400 --> 0:19:44.640 thirty four points, STOW futures down two hundred sixteen, Nasdaq 0:19:44.720 --> 0:19:47.959 futures are down a hundred forty three points. The tenure 0:19:48.000 --> 0:19:51.760 Treasury is down twenty five thirty seconds, yield three point 0:19:51.840 --> 0:19:54.399 eight three percent, yield on the two year four point 0:19:54.480 --> 0:19:57.919 to zero. And just again checking the British pound, it's 0:19:57.960 --> 0:20:00.920 at one point zero eight five four right now against 0:20:00.920 --> 0:20:08.520 the dollar. This is Bloomberg Bloomberg eleven three oh weather. 0:20:08.560 --> 0:20:11.919 Sunshine and upper sixties today, increasing high clouds tomorrow, up 0:20:11.920 --> 0:20:14.439 for sixties will be in the mid sixties. Saturday and 0:20:14.720 --> 0:20:17.439 Sunday as we feel the effects of what's left of 0:20:17.520 --> 0:20:26.200 Tropical Stormy in fifty four degrees. Right now, broadcasting live 0:20:26.359 --> 0:20:30.320 from the Bloomberg Interactive Broker Studio in New York, Bloomberg 0:20:30.320 --> 0:20:33.440 he loving free to Washington, d C Bloomberg, Line nine 0:20:33.480 --> 0:20:36.440 one to Boston Bloomberg one, O six one to San 0:20:36.480 --> 0:20:40.040 Francisco Bloomberg, and M sixty to the country Sirius XM 0:20:40.080 --> 0:20:42.919 CHADO one nine team and around the globe the Bloomberg 0:20:42.960 --> 0:20:46.840 Business app in Bloomberg Radio dot com. This is Bloomberg 0:20:46.960 --> 0:20:55.359 Daybreak six thirty on Wall Street. Good morning, I'm Nathan 0:20:55.400 --> 0:20:58.480 Hagar and I'm Karen Moscow, and we are just about 0:20:58.520 --> 0:21:01.520 three hours away from the open of US trading. Time 0:21:01.560 --> 0:21:03.359 for the five things that you need to notice start 0:21:03.400 --> 0:21:06.000 your day. Brought to you by I b k R 0:21:06.160 --> 0:21:09.800 Investment Advisors switched to Interrected Brokers for lowest cost global 0:21:09.840 --> 0:21:13.520 trading and turnkey custody solutions, no ticket charges and no 0:21:13.640 --> 0:21:16.920 conflicts of your interests at ib KR dot com slash R. 0:21:17.040 --> 0:21:20.520 I a first Hurricane Ian as we can do. A 0:21:20.560 --> 0:21:23.720 tropical storm after hitting Florida with a deadly surge of 0:21:23.840 --> 0:21:27.600 water and catastrophic winds. About two point three million homes 0:21:27.600 --> 0:21:30.000 are without power. To get the very latest on the 0:21:30.040 --> 0:21:34.240 storm from Bloomberg meteorologist Rob Caroline, Karen and Nathan Ian. 0:21:34.320 --> 0:21:37.080 Tied for the fourth strongest tropical weather system to ever 0:21:37.160 --> 0:21:41.800 strike the continental United States made landfall yesterday in southwestern Florida, 0:21:41.880 --> 0:21:43.960 with winds at a hundred and fifty miles an hour 0:21:44.359 --> 0:21:47.840 and an extensive storm surge that caused very significant flooding 0:21:48.119 --> 0:21:52.040