1 00:00:03,200 --> 00:00:06,400 Speaker 1: By from the Bloomberg Interacted Burger Studios. This is Bloomberg 2 00:00:06,480 --> 00:00:10,319 Speaker 1: day Break for Monday, October seventeen two. Coming up this hour, 3 00:00:10,640 --> 00:00:14,040 Speaker 1: the new UK Chancellor starts laying out plans to unwind 4 00:00:14,080 --> 00:00:17,079 Speaker 1: tax cuts. I defied cheese and pink because the world. 5 00:00:17,200 --> 00:00:20,400 Speaker 1: China is ready to stand its ground. Earnings continue with 6 00:00:20,520 --> 00:00:23,800 Speaker 1: Bank of America reporting this morning, and Gold shakes up 7 00:00:23,840 --> 00:00:28,120 Speaker 1: its leadership ranks. More potential legal trouble for former President Trump. 8 00:00:28,320 --> 00:00:31,640 Speaker 1: Lous Ukraine's capital was under missile attack from Russia to day. 9 00:00:32,200 --> 00:00:35,519 Speaker 1: Michael Barroom more ahead, I'm John Stairs, showering sports. The 10 00:00:35,640 --> 00:00:38,560 Speaker 1: Yankees stayed alive with the wooden cleavel. The decisive Game 11 00:00:38,640 --> 00:00:41,640 Speaker 1: five is today. The winds continue for the Jets and Giants. 12 00:00:44,520 --> 00:00:48,479 Speaker 1: That's all Trading ahead on Bloomberg day Break on Bloomberg eleven, 13 00:00:48,520 --> 00:00:52,959 Speaker 1: Free on New York, Bloomberg one, Washington, d C, Bloomberg 14 00:00:53,040 --> 00:00:56,720 Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco 15 00:00:57,240 --> 00:01:00,160 Speaker 1: Syrius x M one nineteen and around the world. Old 16 00:01:00,240 --> 00:01:03,720 Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business app. 17 00:01:07,560 --> 00:01:10,600 Speaker 1: And good morning. I'm Karen Moscow. I'm Nathan Hagar. Bloomberg 18 00:01:10,680 --> 00:01:13,120 Speaker 1: Daybreak is brought to you by SEI. Built on advanced 19 00:01:13,160 --> 00:01:16,800 Speaker 1: technologies and fifty years of innovation. SEI offers asset managers, 20 00:01:16,840 --> 00:01:20,800 Speaker 1: a comprehensive and flexible operations outsourcing platform. Go to se 21 00:01:21,000 --> 00:01:24,480 Speaker 1: I C dot Com, slash Managers and US dot Index. 22 00:01:24,560 --> 00:01:27,000 Speaker 1: Futures on the rise this morning five oh one on 23 00:01:27,080 --> 00:01:29,199 Speaker 1: Wall Street, and we check the markets every fifteen minutes 24 00:01:29,240 --> 00:01:32,520 Speaker 1: throughout the trading day. On Bloomberg. SNP futures up thirty 25 00:01:32,560 --> 00:01:35,720 Speaker 1: two points, DAL futures have two hundred nineteen and ASDAG 26 00:01:35,800 --> 00:01:39,000 Speaker 1: futures up one hundred seventeen. Nathan Karen, We begin this 27 00:01:39,120 --> 00:01:42,560 Speaker 1: morning in Europe, where the pound and UK bonds are rallying. 28 00:01:42,640 --> 00:01:45,280 Speaker 1: That's due to expectations that more of Prime Minister Liz 29 00:01:45,400 --> 00:01:49,680 Speaker 1: Trust's package of unfunded tax cuts maybe reversed. Newly appointed 30 00:01:49,760 --> 00:01:52,360 Speaker 1: Chancellor Jeremy Hunt will make a statement about an hour 31 00:01:52,480 --> 00:01:55,520 Speaker 1: from now. We get more from Bloomberg's Lizzie Burden in London. 32 00:01:55,840 --> 00:01:58,600 Speaker 1: It does seem like Jeremy Hunt is peace by peach 33 00:01:58,920 --> 00:02:02,800 Speaker 1: turning crust and on the in Nacconomic he's excited to 34 00:02:02,920 --> 00:02:06,720 Speaker 1: bring forward more figal uturned in order to calm the market. 35 00:02:07,080 --> 00:02:09,280 Speaker 1: This is really to astonomic things sold the parts and 36 00:02:09,400 --> 00:02:13,120 Speaker 1: exchange the market stability. Bloomberg's Lizzie Burden reports after Haunt's 37 00:02:13,120 --> 00:02:15,440 Speaker 1: address this morning, he will then make remarks to the 38 00:02:15,480 --> 00:02:18,640 Speaker 1: House of Commons. Well in Asia, it's all about China 39 00:02:18,760 --> 00:02:22,079 Speaker 1: this morning, Nathan. President Jijin Ping said he's staying the 40 00:02:22,240 --> 00:02:25,280 Speaker 1: course as the country faces what he calls dangerous storms 41 00:02:25,360 --> 00:02:28,000 Speaker 1: and growing challenges from the US, and in almost two 42 00:02:28,040 --> 00:02:31,400 Speaker 1: hours speech to open the Communist Party Congress, she said 43 00:02:31,880 --> 00:02:37,120 Speaker 1: China will pursue development while ensuring national security. We have 44 00:02:37,320 --> 00:02:41,600 Speaker 1: worked with firm resolve to say for national security, fended 45 00:02:41,680 --> 00:02:46,440 Speaker 1: off and diffused the major risks and enshort social stability. 46 00:02:47,240 --> 00:02:50,400 Speaker 1: We have to vote a great energy to modernizing our 47 00:02:50,520 --> 00:02:54,799 Speaker 1: national defense. President jijin Ping, speaking through an interpreter, also 48 00:02:54,919 --> 00:02:57,600 Speaker 1: pledged Beijing will prevail in its tech battle with the 49 00:02:57,760 --> 00:03:00,720 Speaker 1: US over computer chips. Well back here in US, Karen, 50 00:03:00,800 --> 00:03:03,440 Speaker 1: futures are rising to start the week. It follows another 51 00:03:03,520 --> 00:03:06,400 Speaker 1: sell off on Friday, when the SNP five hundred dropped 52 00:03:06,400 --> 00:03:09,880 Speaker 1: two point four percent. Emily Rowland is co chief investment 53 00:03:09,919 --> 00:03:13,720 Speaker 1: strategist at John Hancock Investment Management. It's tough to say, 54 00:03:13,760 --> 00:03:16,520 Speaker 1: we're in a recession now with unemployment, you know, near 55 00:03:16,600 --> 00:03:20,240 Speaker 1: a fifty year low, but we're probably going there. And frankly, 56 00:03:20,320 --> 00:03:22,959 Speaker 1: some parts of the market are pricing that in you know, 57 00:03:23,080 --> 00:03:27,880 Speaker 1: work down over inequity markets. That's more than two thirds 58 00:03:27,960 --> 00:03:30,959 Speaker 1: of the way there as far as your average bear market, 59 00:03:31,280 --> 00:03:34,720 Speaker 1: but bonds just aren't pricing it in John Hancock's. Emily 60 00:03:34,840 --> 00:03:37,840 Speaker 1: Rowland says inflation has been enemy number one for the 61 00:03:37,920 --> 00:03:41,280 Speaker 1: markets because see a rally and stocks Nathan A's. According 62 00:03:41,360 --> 00:03:44,680 Speaker 1: to Morgan Stanley longtime equity bear Mike Wilson, he says 63 00:03:44,720 --> 00:03:47,440 Speaker 1: stocks are right for a short term rally and the 64 00:03:47,480 --> 00:03:51,280 Speaker 1: absence of earnings capitulation or an official recession. Wilson says 65 00:03:52,240 --> 00:03:55,000 Speaker 1: slump in the SNP five hundred this year has left 66 00:03:55,040 --> 00:03:57,520 Speaker 1: at testing a serious floor of support at its two 67 00:03:57,600 --> 00:04:00,240 Speaker 1: hundred week moving average. He's not ruling out the s 68 00:04:00,320 --> 00:04:03,000 Speaker 1: and P five hundred rising about forty one hundred points. 69 00:04:03,320 --> 00:04:06,080 Speaker 1: That would be about a sixt gain from current levels. 70 00:04:06,280 --> 00:04:08,960 Speaker 1: Inflation and interest rates are still the main focus for 71 00:04:09,080 --> 00:04:12,160 Speaker 1: US markets. Karen St. Louis, FED President Jim Bullard is 72 00:04:12,200 --> 00:04:14,640 Speaker 1: leaving open the possibility that the Central Bank would raise 73 00:04:14,720 --> 00:04:17,440 Speaker 1: interest rates by seventy five basis points at each of 74 00:04:17,520 --> 00:04:20,080 Speaker 1: its next two meetings. At the same time, he says 75 00:04:20,120 --> 00:04:23,240 Speaker 1: it's premature to make that call whether the committee would 76 00:04:23,320 --> 00:04:27,000 Speaker 1: want to full some proposed or thought of policy rate 77 00:04:27,080 --> 00:04:30,640 Speaker 1: increases from three into the December meeting. I think that's 78 00:04:30,680 --> 00:04:33,640 Speaker 1: our judgment. It's it's premature to make St. Louis FED 79 00:04:33,680 --> 00:04:35,760 Speaker 1: President Jim Bullard made the comments at I m F 80 00:04:35,839 --> 00:04:38,320 Speaker 1: and World Bank meetings over the weekend. More earnings are 81 00:04:38,360 --> 00:04:41,280 Speaker 1: also front end center this morning, Nathan. We get results 82 00:04:41,320 --> 00:04:43,839 Speaker 1: from Bank of America shortly, and here are the preview 83 00:04:43,880 --> 00:04:47,719 Speaker 1: as Bloomberg Jeff Bellinger, and let's say it is unlikely 84 00:04:47,880 --> 00:04:51,360 Speaker 1: be of a sidestep the industry wide drop in investment 85 00:04:51,400 --> 00:04:54,680 Speaker 1: banking revenue, but there is uncertainty over just how much 86 00:04:54,760 --> 00:04:57,640 Speaker 1: the company's profit margins on loans were boosted by the 87 00:04:57,720 --> 00:05:02,039 Speaker 1: fed's aggressive series of infest rate hyps. Bloomberg Intelligences, Bank 88 00:05:02,080 --> 00:05:06,160 Speaker 1: of America likely benefited from CEO Brian moynihan strategy of 89 00:05:06,279 --> 00:05:10,560 Speaker 1: pursuing responsible organic gains. Lost provisions are seen as the 90 00:05:10,720 --> 00:05:14,880 Speaker 1: biggest factor for next year. Jeff Bellinger, Bloomberg Day Break. 91 00:05:14,960 --> 00:05:16,880 Speaker 1: All right, Jeff, thank you and We'll talk earnings to 92 00:05:16,920 --> 00:05:20,160 Speaker 1: the Bank of America's CEO Brian moynihan later this afternoon. 93 00:05:20,279 --> 00:05:23,080 Speaker 1: Catch that interview at two thirty pm Wall Street Time 94 00:05:23,120 --> 00:05:26,080 Speaker 1: on Bloomberg Radio and Television. I meantime, Karen, looks like 95 00:05:26,120 --> 00:05:28,760 Speaker 1: a shake ups coming at Goldman, Sachs. We're getting word 96 00:05:28,800 --> 00:05:32,080 Speaker 1: of a third major reorganization in just four years under 97 00:05:32,160 --> 00:05:36,280 Speaker 1: CEO David Solomon. Bloomberg's Lisa Matteo reports. Sources say the 98 00:05:36,320 --> 00:05:39,320 Speaker 1: Wall Street giant plans to once again combine its expanded 99 00:05:39,320 --> 00:05:43,080 Speaker 1: asset management and private wealth business into one unit. Goldman 100 00:05:43,120 --> 00:05:46,680 Speaker 1: will also fuse its investment banking and trading operations under 101 00:05:46,720 --> 00:05:49,320 Speaker 1: one group, and the money losing consumer unit will be 102 00:05:49,480 --> 00:05:52,360 Speaker 1: broken up. The moves mark a reversal for Salmon, who 103 00:05:52,400 --> 00:05:55,360 Speaker 1: had forged ahead with plans to separate the asset management 104 00:05:55,400 --> 00:05:59,400 Speaker 1: and wealth business two years ago despite skepticism within the bank. 105 00:05:59,680 --> 00:06:02,880 Speaker 1: He was also reluctant to combine investment banking and trading 106 00:06:02,960 --> 00:06:05,320 Speaker 1: into one group, as the firm looked to talk up 107 00:06:05,400 --> 00:06:09,320 Speaker 1: other fee based businesses to win over shareholders. Most visibly, 108 00:06:09,480 --> 00:06:12,480 Speaker 1: he's disbanding the direct to consumer efforts, cutting short the 109 00:06:12,520 --> 00:06:15,000 Speaker 1: retail banking dreams that he had spelled out in his 110 00:06:15,080 --> 00:06:19,760 Speaker 1: early days as CEO. Lisa Mateo Bloomberg Daybreak. At least 111 00:06:19,800 --> 00:06:21,839 Speaker 1: at thanks that it's not just banks that are looking 112 00:06:21,880 --> 00:06:24,440 Speaker 1: at restructuring this morning, we could see a re shuffle 113 00:06:24,480 --> 00:06:27,280 Speaker 1: and geopolitics as well. There's where the wine House is 114 00:06:27,279 --> 00:06:30,560 Speaker 1: giving a security relationship with Saudi Arabia a second look. 115 00:06:30,760 --> 00:06:33,680 Speaker 1: Let we get the story from Bloomberg's and Baxter. The 116 00:06:33,800 --> 00:06:36,240 Speaker 1: two have been bumping heads over a number of issues 117 00:06:36,279 --> 00:06:38,960 Speaker 1: over the past few years. The latest that increase in 118 00:06:39,080 --> 00:06:42,760 Speaker 1: oil production. So not White House National Security Advisor Jake 119 00:06:42,800 --> 00:06:46,440 Speaker 1: Sullivan says things have to move, but with caution. This 120 00:06:46,560 --> 00:06:49,440 Speaker 1: is a relationship that got built over decades on a 121 00:06:49,520 --> 00:06:53,320 Speaker 1: bipartisan basis, and so the President isn't going to act precipitously. 122 00:06:53,800 --> 00:06:57,120 Speaker 1: He's gonna act methodically, strategically and have time to meet 123 00:06:57,160 --> 00:07:00,480 Speaker 1: with members of Congress in San Francisco. I'm at Baxter 124 00:07:00,560 --> 00:07:03,240 Speaker 1: Bloomberg Daybreak. Thanks at S and P. Futures right now 125 00:07:03,360 --> 00:07:06,560 Speaker 1: are up thirty three points. Staff futures up twenty seven 126 00:07:06,839 --> 00:07:09,280 Speaker 1: Nastic futures are hired by a hundred twenty one points. 127 00:07:09,400 --> 00:07:12,320 Speaker 1: Ten Your treasury is up fifteen thirty seconds yield on 128 00:07:12,360 --> 00:07:16,440 Speaker 1: the benchmark three point nine, straight ahead, your latest local headlines, 129 00:07:16,480 --> 00:07:23,480 Speaker 1: and a check of sports. This is Bloomberg and it's 130 00:07:23,520 --> 00:07:25,720 Speaker 1: now five oh seven on Wall Street. Word fifty eight 131 00:07:25,800 --> 00:07:29,040 Speaker 1: degrees in Central Park out of crash northbound Garden State Parkway, 132 00:07:29,080 --> 00:07:32,200 Speaker 1: Exit one thirty nine. Details coming up in traffic. Michael 133 00:07:32,240 --> 00:07:34,080 Speaker 1: Bars here first with more on what's going on in 134 00:07:34,120 --> 00:07:36,320 Speaker 1: New York and around the world. Good morning Michael, Good 135 00:07:36,400 --> 00:07:40,239 Speaker 1: morning Nathan. More potential legal trouble for former President Donald Trump. 136 00:07:40,800 --> 00:07:44,120 Speaker 1: The SEC and federal prosecutors in New York I said 137 00:07:44,160 --> 00:07:47,679 Speaker 1: to be investigating whistle blower claims by a co founder 138 00:07:47,840 --> 00:07:52,480 Speaker 1: that Trump Media violated federal securities law. The Trump Media 139 00:07:52,720 --> 00:07:57,520 Speaker 1: says that whistle blower's account is rife with knowingly false 140 00:07:57,600 --> 00:08:02,239 Speaker 1: and defamatory statements and other goodn't con the cycle dramas. Meanwhile, 141 00:08:02,280 --> 00:08:05,360 Speaker 1: the Trump organization is about stand trial for tax evasion. 142 00:08:05,760 --> 00:08:08,200 Speaker 1: The Attorney General in New York has accused the company 143 00:08:08,240 --> 00:08:13,320 Speaker 1: of fraud. Explosive latent suicide drones have struck Ukraine's capital 144 00:08:13,400 --> 00:08:16,600 Speaker 1: as families were preparing to start their week, the blast 145 00:08:16,640 --> 00:08:21,080 Speaker 1: echoing across keev and sending people scurrying to shelters. Kiev's 146 00:08:21,280 --> 00:08:25,560 Speaker 1: mayor says the strikes are damaging several apartment blocks and 147 00:08:25,760 --> 00:08:29,560 Speaker 1: set fire to a non residential building. Mire Itali Klitchko 148 00:08:29,640 --> 00:08:32,719 Speaker 1: says though Ukrainians are not giving up, the people is 149 00:08:32,920 --> 00:08:36,520 Speaker 1: very good motivated, and that's why I'm more than sure 150 00:08:36,920 --> 00:08:40,880 Speaker 1: we win this war. Because it's our home, it's our families, 151 00:08:41,240 --> 00:08:43,559 Speaker 1: it's our of fusion. We ready to die for them. 152 00:08:44,160 --> 00:08:47,560 Speaker 1: Mere Klitchko told of Vladimir Putin, it's a crazy idea 153 00:08:47,679 --> 00:08:50,800 Speaker 1: to rebuild the U s SR and see Ukraine as 154 00:08:50,880 --> 00:08:53,839 Speaker 1: part of the big Russian Empire. It's an illusion. A 155 00:08:53,960 --> 00:08:57,800 Speaker 1: suspect in a North California serial killing spree that claimed 156 00:08:57,840 --> 00:09:00,439 Speaker 1: the lives of six men will be a rain tomorrow. 157 00:09:00,840 --> 00:09:04,120 Speaker 1: Police say tips from residents in Stockton and Oakland, where 158 00:09:04,160 --> 00:09:07,360 Speaker 1: the men were murdered, help them identify the suspect. Police 159 00:09:07,440 --> 00:09:11,120 Speaker 1: arrested forty three year old Wesley Brownly in Stockton as 160 00:09:11,200 --> 00:09:14,440 Speaker 1: he was reportedly driving around at night looking for another victim. 161 00:09:15,080 --> 00:09:19,720 Speaker 1: Could we one day have a vaccine for cancer? Dr OSLM. Tressey, 162 00:09:20,000 --> 00:09:23,240 Speaker 1: one half of the German team working on a cancer vaccine, 163 00:09:23,600 --> 00:09:28,120 Speaker 1: says she is consciously optimistic as scientists. We are always 164 00:09:28,480 --> 00:09:31,760 Speaker 1: hesitant to say we will have a cure for cancer. 165 00:09:32,320 --> 00:09:36,360 Speaker 1: We have a number of breakfoods and we will continue 166 00:09:36,400 --> 00:09:39,160 Speaker 1: to work on them. Still, she tells the BBC, progress 167 00:09:39,280 --> 00:09:42,559 Speaker 1: is being made every day, every step every patient we 168 00:09:42,720 --> 00:09:46,040 Speaker 1: treat in all cancer fire its helps us to find 169 00:09:46,400 --> 00:09:50,360 Speaker 1: out law. Dr Tressey adds a cancer vaccine could be 170 00:09:50,400 --> 00:09:53,360 Speaker 1: available by the end of the decade. Global News twenty 171 00:09:53,400 --> 00:09:56,120 Speaker 1: four hours a day on air and on Bloomberg Quick Take, 172 00:09:56,160 --> 00:10:00,400 Speaker 1: powered by more than seven journalist analysts in more than countries. 173 00:10:00,600 --> 00:10:07,480 Speaker 1: Michael Barr, this is Bloomberg Nather. Thank you, Michael. Coming 174 00:10:07,559 --> 00:10:09,079 Speaker 1: up to five ten on Wall Street. Time for the 175 00:10:09,120 --> 00:10:11,880 Speaker 1: Bloomberg Sports Uptake and Morning John tesh Ower, Good morning 176 00:10:11,960 --> 00:10:14,280 Speaker 1: eight and Yankees right back in Cleveland the night after 177 00:10:14,440 --> 00:10:16,360 Speaker 1: blowing a two run ninth inning leave for the first 178 00:10:16,400 --> 00:10:19,080 Speaker 1: time in their postseason history, and again they led by 179 00:10:19,200 --> 00:10:21,400 Speaker 1: two bottom of the ninth no issues, this time of 180 00:10:21,480 --> 00:10:24,280 Speaker 1: four to Game four victory of the Guardians that times 181 00:10:24,360 --> 00:10:27,319 Speaker 1: the series of two sets the stage for a decisive 182 00:10:27,360 --> 00:10:30,120 Speaker 1: Game five tonight at the Stadium. Yankee heroes, certainly. Garrett 183 00:10:30,160 --> 00:10:32,719 Speaker 1: Cole pitched like an ace with seven strong innings and 184 00:10:32,760 --> 00:10:36,240 Speaker 1: Harrison Bader continues to hit home runs like Aaron Judge 185 00:10:36,280 --> 00:10:39,000 Speaker 1: his third and four games. Yankee fans wondered why Clay 186 00:10:39,080 --> 00:10:41,920 Speaker 1: Holmes didn't pitch Saturday. He did pitch the eighth inning. 187 00:10:42,000 --> 00:10:44,240 Speaker 1: Last night, Wandy per Alta pitched the ninth the winner. 188 00:10:44,320 --> 00:10:47,840 Speaker 1: Tonight plays Houston, the Alcs third straight week where both 189 00:10:47,920 --> 00:10:50,319 Speaker 1: the Jets and Giants won. The Jets with an upset win. 190 00:10:50,360 --> 00:10:52,200 Speaker 1: They've yet to be favored in the game this season, 191 00:10:52,280 --> 00:10:55,360 Speaker 1: but three big second half plays carried them at Green Bay. 192 00:10:55,400 --> 00:10:59,000 Speaker 1: At Brexton BARRIOSRTT run, a block punt was returned for 193 00:10:59,040 --> 00:11:01,160 Speaker 1: a score, and then the Jets put the game away. 194 00:11:01,320 --> 00:11:04,000 Speaker 1: Zach Wilson takes the snap counter hand off up the 195 00:11:05,400 --> 00:11:14,160 Speaker 1: thirty light touchdown, a little countering side hand off to 196 00:11:14,280 --> 00:11:17,680 Speaker 1: Freee Hall. We'll find some Jet fans in the crowd 197 00:11:18,280 --> 00:11:21,719 Speaker 1: and does the Jets lambo? Yes, and not only a 198 00:11:21,800 --> 00:11:24,760 Speaker 1: Lambeaux eight, but Sauce Gardner was wearing a cheese head. 199 00:11:24,800 --> 00:11:27,840 Speaker 1: After they beat the Packers twenty seven to ten, Jets 200 00:11:27,880 --> 00:11:30,120 Speaker 1: for four and two Giants or five and one another 201 00:11:30,160 --> 00:11:33,120 Speaker 1: big comeback it MetLife. They trailed Baltimore by ten just 202 00:11:33,360 --> 00:11:36,640 Speaker 1: over six minutes left down the stracks, two touchdowns, two 203 00:11:36,720 --> 00:11:39,280 Speaker 1: force turnovers, and the Giants beat the Ravens twenty four 204 00:11:39,360 --> 00:11:42,199 Speaker 1: to twenty. NFC E Showdown last night Philadelphia went to 205 00:11:42,200 --> 00:11:45,760 Speaker 1: six and oh beat Dallas twenty six to seventeen. John Stashward, 206 00:11:45,760 --> 00:11:48,480 Speaker 1: Bloomberg Sports, NACOLN, Thank you, john S and p. Futures 207 00:11:48,559 --> 00:11:50,640 Speaker 1: up thirty three points right now down futures have two 208 00:11:50,679 --> 00:11:52,719 Speaker 1: under twenty six nest At futures are highed by a 209 00:11:52,840 --> 00:11:56,720 Speaker 1: hundred twenty one points ten. Your treasuries up fifteen thirty seconds. 210 00:11:56,800 --> 00:11:59,720 Speaker 1: You'll three point nine five percent. We get this trading. 211 00:11:59,760 --> 00:12:02,760 Speaker 1: We started on a busy week for earnings. Next with 212 00:12:02,840 --> 00:12:08,360 Speaker 1: Lori Calvacina at RBC Bloomberg day Break brought to you 213 00:12:08,360 --> 00:12:10,120 Speaker 1: by the New York Community Trust. Your name will live 214 00:12:10,160 --> 00:12:11,920 Speaker 1: on as a champion of the causes you care about 215 00:12:11,960 --> 00:12:14,640 Speaker 1: for years to come through a charitable request to the 216 00:12:14,679 --> 00:12:18,080 Speaker 1: New York Community Trust. Learn more at Philanthropists dot NYC. 217 00:12:22,120 --> 00:12:25,480 Speaker 1: Markets headlines and breaking news twenty four hours a day 218 00:12:25,640 --> 00:12:29,200 Speaker 1: at Bloomberg dot Com, The Bloomberg Business Outland at Bloomberg 219 00:12:29,280 --> 00:12:39,440 Speaker 1: Quick Takes a Bloomberg Business Lash and I'm Cameron Moscow 220 00:12:39,640 --> 00:12:43,160 Speaker 1: and us Dock indise futures are on the rise this morning. 221 00:12:43,240 --> 00:12:46,960 Speaker 1: The pound meanwhile is rallying and UK bonds surging himid 222 00:12:47,040 --> 00:12:50,120 Speaker 1: expectations that more of our Prime Minister list Trust's package 223 00:12:50,120 --> 00:12:53,160 Speaker 1: of unfunded tax cuts will be reversed. And we checked 224 00:12:53,160 --> 00:12:55,400 Speaker 1: the markets every fifteen minutes throughout the trading day. On 225 00:12:55,480 --> 00:12:58,000 Speaker 1: Bloomberg Guess and P futures they're up thirty five points 226 00:12:58,120 --> 00:13:01,120 Speaker 1: now futures up two forty two and nas deack futures 227 00:13:01,200 --> 00:13:04,280 Speaker 1: up one hundred twenty nine. The decks in Germany is 228 00:13:04,360 --> 00:13:06,240 Speaker 1: up a third of upper cent ten year treasury of 229 00:13:06,320 --> 00:13:09,560 Speaker 1: fifteen thirty seconds. Heel three point nine five percent yield 230 00:13:09,640 --> 00:13:12,520 Speaker 1: on the two year four point four four percent. Nine 231 00:13:12,720 --> 00:13:15,000 Speaker 1: x heard oil is down two tents of a percent 232 00:13:15,120 --> 00:13:17,400 Speaker 1: on eighteen cents at eighty five dollars, forty three cents 233 00:13:17,440 --> 00:13:19,920 Speaker 1: of barrel comics gold up seven tenths per cent or 234 00:13:19,960 --> 00:13:23,360 Speaker 1: eleven dollars ninety cents at sixteen sixty eighty announced. The 235 00:13:23,480 --> 00:13:26,559 Speaker 1: Europe point nine seven five one against the dollar, British 236 00:13:26,600 --> 00:13:28,719 Speaker 1: pound one point one to eight two and again one 237 00:13:28,800 --> 00:13:31,880 Speaker 1: forty eight point six nine, and looking at bitcoin it 238 00:13:32,040 --> 00:13:34,880 Speaker 1: is down a quarter percent and nineteen thousand two hundred 239 00:13:35,000 --> 00:13:37,520 Speaker 1: eighty dollars. Today, we do get a report on Empire 240 00:13:37,600 --> 00:13:40,360 Speaker 1: Manufacturing at eight thirty Wall Street Time and Bank of 241 00:13:40,400 --> 00:13:43,640 Speaker 1: America and Charles schwab Her among company scheduled to report 242 00:13:43,679 --> 00:13:46,800 Speaker 1: earnings today. That's a Bloomberg business flash. Now here's Michael 243 00:13:46,840 --> 00:13:49,280 Speaker 1: Barr with more on what's going on around the world. Michael, 244 00:13:49,320 --> 00:13:52,839 Speaker 1: good morning, Good morning, Karen. Ukraine's capital was under a 245 00:13:52,880 --> 00:13:56,480 Speaker 1: missile attack from Russia with so called suicide drones this morning. 246 00:13:56,840 --> 00:14:01,080 Speaker 1: Several loud explosions rocked Kiev Russians ranks over the past week. 247 00:14:01,120 --> 00:14:05,600 Speaker 1: If hit infrastructure, including power facilities. The late polls shows 248 00:14:05,800 --> 00:14:09,319 Speaker 1: control of the House is likely to flip to Republicans 249 00:14:09,679 --> 00:14:12,720 Speaker 1: with election day less than a month away. The current 250 00:14:12,760 --> 00:14:17,840 Speaker 1: CBS News You Go polling projection shows that Republicans would 251 00:14:17,880 --> 00:14:20,640 Speaker 1: get two hundred twenty four to two hundred eleven in 252 00:14:20,720 --> 00:14:24,560 Speaker 1: an advantage in the House over Democrats. In baseball, the 253 00:14:24,680 --> 00:14:27,120 Speaker 1: deciding Game five is tonight between the Yankees and the 254 00:14:27,160 --> 00:14:30,520 Speaker 1: Guardians and their a lds. Yesterday, New York survived beating 255 00:14:30,560 --> 00:14:33,560 Speaker 1: Cleveland for two in Game four. In the NFL, the 256 00:14:33,640 --> 00:14:38,680 Speaker 1: Giants beat Ravens, the Jets beat the packers, The Patriots 257 00:14:38,760 --> 00:14:42,080 Speaker 1: won forty nine News lost, Global News twenty four hours 258 00:14:42,120 --> 00:14:45,120 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 259 00:14:45,200 --> 00:14:47,720 Speaker 1: more than twenty seven hundred journalists and analysts more than 260 00:14:47,760 --> 00:14:51,600 Speaker 1: a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. 261 00:14:51,640 --> 00:14:53,640 Speaker 1: All right, Michael, thanks for coming up to five twenty 262 00:14:53,680 --> 00:14:56,800 Speaker 1: on Wall Street Life from the Bloomberg Interactive Broker Studios. 263 00:14:56,880 --> 00:15:00,160 Speaker 1: This is Bloomberg Daybreak. And Lori Calvasinis here of this 264 00:15:00,320 --> 00:15:02,720 Speaker 1: now to get this trading week started ahead of US 265 00:15:02,760 --> 00:15:06,720 Speaker 1: Equity Strategy at RBC Capital Markets. Laurie, it's great as 266 00:15:06,760 --> 00:15:08,760 Speaker 1: always to speak with you, and I know we're early 267 00:15:08,920 --> 00:15:12,080 Speaker 1: in this earning season, but given the results we've seen 268 00:15:12,240 --> 00:15:14,400 Speaker 1: so far, is it sort of shaking out the way 269 00:15:14,480 --> 00:15:16,880 Speaker 1: you expected or have you gotten any surprises? How do 270 00:15:16,920 --> 00:15:19,720 Speaker 1: you look at earnings right now? Well, thanks for having 271 00:15:19,800 --> 00:15:21,880 Speaker 1: me as always, and you know it's great to finally, 272 00:15:22,040 --> 00:15:24,240 Speaker 1: you know, have this reporting season started. I think it's 273 00:15:24,280 --> 00:15:27,000 Speaker 1: been well anticipated by investors for quite some time, though 274 00:15:27,040 --> 00:15:29,520 Speaker 1: not in a good way. And I would say last week, 275 00:15:29,680 --> 00:15:31,960 Speaker 1: you know, as we read through the transcripts, I wouldn't 276 00:15:31,960 --> 00:15:34,640 Speaker 1: say there are any big surprises on my end, except 277 00:15:34,760 --> 00:15:36,760 Speaker 1: perhaps maybe that we're just hearing a lot of the 278 00:15:36,840 --> 00:15:39,160 Speaker 1: same things that we've heard in the past. So I 279 00:15:39,200 --> 00:15:41,720 Speaker 1: would say, on the positive side, we are hearing commentary 280 00:15:41,720 --> 00:15:43,880 Speaker 1: about supply chains getting a bit better. I think the 281 00:15:44,000 --> 00:15:46,480 Speaker 1: tone of labor is improving though that frankly, that is 282 00:15:46,560 --> 00:15:48,320 Speaker 1: something on both of those weeks been hearing for the 283 00:15:48,400 --> 00:15:51,840 Speaker 1: last couple quarters. Um, it seems to me that companies 284 00:15:51,920 --> 00:15:54,840 Speaker 1: are kind of battening down the hatches, getting cautious. Um. 285 00:15:54,880 --> 00:15:57,200 Speaker 1: But at the same time we had companies saying you, no, look, 286 00:15:57,240 --> 00:15:59,760 Speaker 1: we really aren't seen major crack yet except in certain 287 00:15:59,840 --> 00:16:02,760 Speaker 1: co horse of consumers. So I think to the extent 288 00:16:02,880 --> 00:16:05,480 Speaker 1: that the equity community wants the earnings band aid risked 289 00:16:05,480 --> 00:16:08,360 Speaker 1: off in a big way, last week's reporters didn't tell 290 00:16:08,400 --> 00:16:10,080 Speaker 1: me we're going to get it just yet. We might 291 00:16:10,120 --> 00:16:12,280 Speaker 1: have to wait a little bit longer, alright. So, given 292 00:16:12,360 --> 00:16:16,840 Speaker 1: the futures bounce we're seeing this morning, and perhaps some 293 00:16:16,960 --> 00:16:21,520 Speaker 1: of the trepidation around earnings perhaps priced into heading into 294 00:16:21,640 --> 00:16:23,840 Speaker 1: this earning season, are you looking for a little bit 295 00:16:24,200 --> 00:16:26,880 Speaker 1: more of a bounce for equities or what's the path 296 00:16:27,000 --> 00:16:30,400 Speaker 1: forward for you? So what I'll say on earnings. Is 297 00:16:30,440 --> 00:16:32,880 Speaker 1: that even though we think that the need to reduce 298 00:16:33,040 --> 00:16:35,480 Speaker 1: forecast is going to be ahead wind for the market 299 00:16:35,560 --> 00:16:38,000 Speaker 1: well into next year, it is possible, if you go 300 00:16:38,080 --> 00:16:41,760 Speaker 1: back over history, for stocks to bottom before earnings estimate 301 00:16:41,800 --> 00:16:44,360 Speaker 1: revisions are fully you know, kind of reconciled or are 302 00:16:44,400 --> 00:16:46,960 Speaker 1: fully ratcheted down. In fact, that's not something that can happen. 303 00:16:47,040 --> 00:16:49,320 Speaker 1: That is something that normally happens, and we normally see 304 00:16:49,360 --> 00:16:51,520 Speaker 1: that bottoming and stalks about three to six months before 305 00:16:51,560 --> 00:16:54,360 Speaker 1: the earnings numbers stopped coming down. I think maybe in 306 00:16:54,400 --> 00:16:56,520 Speaker 1: the near term, Nathan, when I'm a little more interested 307 00:16:56,560 --> 00:16:58,480 Speaker 1: in something you guys lad with which is just a 308 00:16:58,520 --> 00:17:01,560 Speaker 1: mid term elections is around the time of year that 309 00:17:01,640 --> 00:17:03,880 Speaker 1: we would typically see the market kind of bottom and 310 00:17:04,000 --> 00:17:06,520 Speaker 1: rally in a midterm election year. And on average and 311 00:17:06,880 --> 00:17:08,320 Speaker 1: you know, kind of the final few months of a 312 00:17:08,359 --> 00:17:10,480 Speaker 1: midterm year, you get a rally about seven percent in 313 00:17:10,560 --> 00:17:13,080 Speaker 1: the stock market. Um, And I do think things are 314 00:17:13,080 --> 00:17:15,760 Speaker 1: starting to maybe turn back in the Republicans direction a bit. 315 00:17:15,840 --> 00:17:17,720 Speaker 1: We have seen momentum earlier and you know, kind of 316 00:17:17,760 --> 00:17:19,720 Speaker 1: late in the summer shifting for the Democrats. I feel 317 00:17:19,760 --> 00:17:21,440 Speaker 1: like maybe that's starting to turn again based on some 318 00:17:21,520 --> 00:17:23,200 Speaker 1: of the data we're seeing. Yeah, I know you have 319 00:17:23,320 --> 00:17:25,760 Speaker 1: been thinking about the midterm election as sort of a 320 00:17:25,840 --> 00:17:30,000 Speaker 1: catalyst for stocks going forward. Here, what's the potential perhaps 321 00:17:30,080 --> 00:17:33,600 Speaker 1: for a surprise in uh in the political aspect of 322 00:17:33,680 --> 00:17:38,760 Speaker 1: this potentially affecting investors. So look, I think that you know, 323 00:17:38,880 --> 00:17:42,480 Speaker 1: there's been sort of expectations slash hope maybe you know, 324 00:17:42,560 --> 00:17:45,960 Speaker 1: kind of moderated hope that Republicans would take back control 325 00:17:46,000 --> 00:17:47,720 Speaker 1: of at least one chamber, and it looks like that 326 00:17:47,840 --> 00:17:50,560 Speaker 1: consensus is starting to get solidified again. I think the 327 00:17:50,640 --> 00:17:53,639 Speaker 1: big negative surprise for markets would be Democrats managing to 328 00:17:53,720 --> 00:17:55,520 Speaker 1: hang on to both chambers, and I don't think that's 329 00:17:55,520 --> 00:17:57,640 Speaker 1: what the polling data is suggesting right now. I think, 330 00:17:57,840 --> 00:17:59,560 Speaker 1: you know, what we're seeing is the Senate looks like 331 00:17:59,760 --> 00:18:01,840 Speaker 1: that's where the Democrats have a bigger chance of keeping 332 00:18:01,920 --> 00:18:05,040 Speaker 1: control um the House. You know, the CBS News poll 333 00:18:05,119 --> 00:18:07,800 Speaker 1: you know, mentioned that things are trending back in favor 334 00:18:07,800 --> 00:18:09,960 Speaker 1: of the Republicans there. But I think, you know, I 335 00:18:10,280 --> 00:18:11,800 Speaker 1: do think it would be a negative reaction in the 336 00:18:11,840 --> 00:18:14,560 Speaker 1: market if the Democrats managed to keep both What about 337 00:18:14,960 --> 00:18:18,639 Speaker 1: the FED impact here? We keep hearing the possibility of 338 00:18:18,920 --> 00:18:21,800 Speaker 1: more jumbo sized rate hikes. We got that hotter than 339 00:18:21,840 --> 00:18:26,240 Speaker 1: expected inflation data. How does the FED factor into your forecast? Well, look, 340 00:18:26,320 --> 00:18:28,440 Speaker 1: it's it's interesting. I mean we've got you know, sort 341 00:18:28,480 --> 00:18:31,679 Speaker 1: of consensus expectations for additional big hikes, you know between 342 00:18:31,800 --> 00:18:33,840 Speaker 1: now and early next year. We've got that big intour 343 00:18:33,880 --> 00:18:37,160 Speaker 1: earnings model. We've got that big entire valuation model. Um. 344 00:18:37,480 --> 00:18:39,480 Speaker 1: You know, I think it's still continues to be on 345 00:18:39,600 --> 00:18:42,280 Speaker 1: the FED. What kind of recession do we end up having? 346 00:18:42,400 --> 00:18:44,760 Speaker 1: I think a short, shallow recession is pretty darn close 347 00:18:44,840 --> 00:18:48,120 Speaker 1: to bake. Then thirty and one is a twenty seven 348 00:18:48,200 --> 00:18:50,320 Speaker 1: percent draw down from the January peak, which is a 349 00:18:50,400 --> 00:18:53,679 Speaker 1: media and recession draw down. UM. So I think as 350 00:18:53,760 --> 00:18:56,000 Speaker 1: long as you can convince yourself that the economic damage 351 00:18:56,000 --> 00:18:57,920 Speaker 1: isn't going to be more than that, it's reasonable for 352 00:18:57,960 --> 00:18:59,879 Speaker 1: stocks to search for a bottom in here. But I 353 00:19:00,000 --> 00:19:02,320 Speaker 1: think the interesting wrinkle with the mid terms with this, Nathan, 354 00:19:02,400 --> 00:19:05,280 Speaker 1: which is that, um, as long as inflation is a problem, 355 00:19:05,760 --> 00:19:07,520 Speaker 1: that is something that I think is friendly to the 356 00:19:07,600 --> 00:19:10,760 Speaker 1: Republicans because it keeps economic issues into the forefront, which 357 00:19:11,040 --> 00:19:14,000 Speaker 1: Republicans traditionally pulled better on. So, in an indirect way, 358 00:19:14,600 --> 00:19:17,399 Speaker 1: hotter inflation in the short term is probably, you know, 359 00:19:17,640 --> 00:19:19,800 Speaker 1: good for the market in an indirect way because it 360 00:19:19,880 --> 00:19:21,800 Speaker 1: does keep sort of the market family outcome in the 361 00:19:21,840 --> 00:19:24,639 Speaker 1: mid terms on the table. As always, LORI, great to 362 00:19:24,720 --> 00:19:27,320 Speaker 1: get your thoughts. Thanks again for being with us. Lori Calvacina, 363 00:19:27,640 --> 00:19:31,720 Speaker 1: head of US Equity Strategy at RBC Capital Markets. Futures 364 00:19:31,840 --> 00:19:35,359 Speaker 1: right now pointing higher. SMP futures are up thirty four points, 365 00:19:35,400 --> 00:19:38,359 Speaker 1: STOW futures up tune or thirty two NASDAC Future is 366 00:19:38,440 --> 00:19:40,520 Speaker 1: leading the games this morning. They're up a hundred twenty 367 00:19:40,560 --> 00:19:43,719 Speaker 1: six points. That's a gain of one point two percent. 368 00:19:44,119 --> 00:19:47,200 Speaker 1: The tenure Treasury is up sixteen thirty seconds, yield three 369 00:19:47,240 --> 00:19:49,400 Speaker 1: point nine five percent. The yield on the two year 370 00:19:49,480 --> 00:19:53,359 Speaker 1: right now four point four four percent. Look at at 371 00:19:53,400 --> 00:19:56,280 Speaker 1: i'm excrude, it's down two tenths percent at eighty five 372 00:19:56,840 --> 00:20:01,040 Speaker 1: forty three cents a barrel. You're listening to Bomberg Daybreak. 373 00:20:07,119 --> 00:20:09,960 Speaker 1: Bloomberg Daybreak brought to you by Pepack Private Wealth Management. 374 00:20:10,000 --> 00:20:12,639 Speaker 1: Peapack Private Wealth Management knows that the portfolio is more 375 00:20:12,680 --> 00:20:14,919 Speaker 1: than a collection of assets, that's a path to your future. 376 00:20:15,320 --> 00:20:18,840 Speaker 1: Visit Peapack Private dot Com and begin your financial legacy today, 377 00:20:22,280 --> 00:20:26,760 Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York, 378 00:20:26,920 --> 00:20:30,000 Speaker 1: Bloomberg E Living Free on to Washington, d C, Bloomberg 379 00:20:30,119 --> 00:20:33,200 Speaker 1: ninety nine one to Boston, Bloomberg one O six one 380 00:20:33,320 --> 00:20:36,760 Speaker 1: to San Francisco, Bloomberg Knowing sixteen to the country, Sirius 381 00:20:36,920 --> 00:20:40,080 Speaker 1: XM chto one nineteen and around the globe the Bloomberg 382 00:20:40,119 --> 00:20:44,560 Speaker 1: Business at and Bloomberg Radio dot Com. This is Bloomberg Daybreak. 383 00:20:50,119 --> 00:20:52,120 Speaker 1: It's five thirty on Wall Street. Good morning. I'm Nathan 384 00:20:52,200 --> 00:20:55,080 Speaker 1: Hager and I'm Karen Moscow. We're just about four hours 385 00:20:55,119 --> 00:20:57,320 Speaker 1: away from the open of US trading. Let's yet you 386 00:20:57,359 --> 00:20:58,720 Speaker 1: have to date on the news you need to know 387 00:20:58,800 --> 00:21:00,880 Speaker 1: at this shower in your up The pound in UK 388 00:21:01,040 --> 00:21:04,119 Speaker 1: bonds are rallying. That's due to expectations that Prime Minister 389 00:21:04,240 --> 00:21:07,840 Speaker 1: Liz Trust's package of unfunded tax cuts may be reversed. 390 00:21:08,119 --> 00:21:12,240 Speaker 1: Newly appointed UK Chancellor Jeremy Hunt makes an announcement about 391 00:21:12,320 --> 00:21:15,000 Speaker 1: half an hour from now. After that, he speaks in 392 00:21:15,040 --> 00:21:18,040 Speaker 1: the House of Commons. Bloomberg's Lizzie Burden has more were 393 00:21:18,080 --> 00:21:21,439 Speaker 1: expecting when Hunt makes his statement in the Commons today 394 00:21:21,680 --> 00:21:24,160 Speaker 1: to give us a little more detail on how they're 395 00:21:24,200 --> 00:21:26,879 Speaker 1: going to balance the books because Trust and Omics is 396 00:21:26,920 --> 00:21:30,000 Speaker 1: being dismantled piece by piece, and Peace behind the scenes 397 00:21:30,040 --> 00:21:32,560 Speaker 1: are asking themselves what's the point of having her at 398 00:21:32,600 --> 00:21:36,240 Speaker 1: the top, And Bloomberg's Lizzie Burden says MP's are considering 399 00:21:36,280 --> 00:21:39,600 Speaker 1: whether Trust's days as Prime Minister could be numbered. Meantime, 400 00:21:39,640 --> 00:21:42,640 Speaker 1: in Asia, Karen Chinese President she Jin Pink says he'll 401 00:21:42,680 --> 00:21:45,840 Speaker 1: stay the course as China faces growing challenges from the US. 402 00:21:46,200 --> 00:21:48,560 Speaker 1: In a speech drop in the Communist Party Congress, she 403 00:21:48,760 --> 00:21:52,800 Speaker 1: touted his economic and COVID policies and address Taiwan independence 404 00:21:52,800 --> 00:21:56,119 Speaker 1: following several visits to the island from US leaders, we 405 00:21:56,480 --> 00:22:03,760 Speaker 1: have resolutely fortunate inst separatism and counter interference demonstrate our 406 00:22:03,840 --> 00:22:09,440 Speaker 1: resolve and the ability to safeguard China's suffeignty and territorial 407 00:22:09,840 --> 00:22:15,679 Speaker 1: intepret opos. Taiwan Independence President jij And Ping, speaking through 408 00:22:15,680 --> 00:22:18,560 Speaker 1: an interpreter, also pledged Beijing will prevail and its tech 409 00:22:18,640 --> 00:22:21,000 Speaker 1: battle with the U S over computer chips well on 410 00:22:21,080 --> 00:22:23,920 Speaker 1: Well Street today, Nathan, US futures are bouncing back from 411 00:22:23,960 --> 00:22:27,400 Speaker 1: Friday Sella. FED policy remains in focus after last week's 412 00:22:27,440 --> 00:22:30,760 Speaker 1: hot inflation rating. St. Louis FED President Jim Bullard says 413 00:22:30,800 --> 00:22:33,040 Speaker 1: a seventy five basis point rate hike at each of 414 00:22:33,080 --> 00:22:35,840 Speaker 1: the next two f O MC meetings as possible, and 415 00:22:35,960 --> 00:22:39,760 Speaker 1: that forward guidance will be critical for limiting volatility. We've 416 00:22:39,800 --> 00:22:42,800 Speaker 1: got the repricing dynamic going on. We are asking all 417 00:22:42,880 --> 00:22:45,920 Speaker 1: of you to um take into account the higher rates 418 00:22:46,000 --> 00:22:48,000 Speaker 1: that have to come, take into account that we're going 419 00:22:48,040 --> 00:22:50,600 Speaker 1: to have to get inflation down in the US and 420 00:22:51,000 --> 00:22:53,760 Speaker 1: get that repricing to occur in as orderly a fashion 421 00:22:53,840 --> 00:22:56,840 Speaker 1: as possible. St. Louis FED President Jim Bullard made the 422 00:22:56,920 --> 00:22:59,159 Speaker 1: comments over the weekend at the annual meeting of the 423 00:22:59,240 --> 00:23:01,480 Speaker 1: I m F and World Bank. On the earnings front, 424 00:23:01,520 --> 00:23:04,120 Speaker 1: Karen Bank of America reports this morning. After that, stay 425 00:23:04,160 --> 00:23:07,000 Speaker 1: tuned for an interview Bank of America CEO Brian moynihan. 426 00:23:07,080 --> 00:23:09,560 Speaker 1: He sits down with Bloomberg Radio and Television at two 427 00:23:09,680 --> 00:23:12,800 Speaker 1: thirty pm Wall Street time, and an organizational shake up 428 00:23:12,920 --> 00:23:15,399 Speaker 1: is coming to Goldman Sachs Nathan. The banks expected to 429 00:23:15,440 --> 00:23:19,040 Speaker 1: combine its asset management and private wealth business into one unit. 430 00:23:19,440 --> 00:23:23,000 Speaker 1: It will also fuse his investment banking and trading operations. 431 00:23:23,560 --> 00:23:26,520 Speaker 1: S andp futures up about forty points this morning down 432 00:23:26,560 --> 00:23:29,359 Speaker 1: features up two hundred seventy six, nastag futures of one 433 00:23:29,760 --> 00:23:32,320 Speaker 1: forty two, straight ahead, your latest local headlines, plus a 434 00:23:32,440 --> 00:23:39,840 Speaker 1: check of sports. This is Bloomberg. Thanks on Wall Street 435 00:23:39,880 --> 00:23:42,480 Speaker 1: fifty gree Central Park still got that crash northbound Garden 436 00:23:42,520 --> 00:23:44,800 Speaker 1: State bigs at one thirty nine, and Michael Bars here 437 00:23:44,840 --> 00:23:46,280 Speaker 1: with more on what's going on in New York and 438 00:23:46,359 --> 00:23:48,679 Speaker 1: around the world. Michael, thank you very much. Nathan. More 439 00:23:48,760 --> 00:23:52,040 Speaker 1: potential legal trouble for Donald Trump, it said the SEC 440 00:23:52,280 --> 00:23:56,800 Speaker 1: and federal prosecutors in New York are investigating whistle blower claims. 441 00:23:57,280 --> 00:24:00,639 Speaker 1: Federal regulators are pouring over a complaint by a former 442 00:24:00,800 --> 00:24:05,200 Speaker 1: executive at Truth Social's parent company, alleging Trump Media and 443 00:24:05,359 --> 00:24:10,320 Speaker 1: Technology group violated securities laws. Several loud explosions rocked the 444 00:24:10,440 --> 00:24:13,320 Speaker 1: city of Kiev in Ukraine early today. The head of 445 00:24:13,320 --> 00:24:16,639 Speaker 1: the Ukrainian President's office says Kiev was struck by Russia 446 00:24:16,920 --> 00:24:20,199 Speaker 1: with Iranian drones. In the last few weeks. Russia has 447 00:24:20,240 --> 00:24:24,480 Speaker 1: been attacking critical civilian infrastructure. Ambassador of Ukraine to the 448 00:24:24,600 --> 00:24:29,560 Speaker 1: U s Oxana Markarova two thirty five days no limits 449 00:24:29,680 --> 00:24:33,359 Speaker 1: and no moral restrictions from from Russian aggressor. So we 450 00:24:33,400 --> 00:24:36,600 Speaker 1: should be prepared for every since and it's actually irrelevant 451 00:24:36,920 --> 00:24:40,600 Speaker 1: at this point what he says, because this partial mobilization 452 00:24:40,760 --> 00:24:44,200 Speaker 1: has been a big failure. Ambassador marcar Rova spoke on 453 00:24:44,280 --> 00:24:46,840 Speaker 1: CBS has faced the nation, which can be heard Sundays 454 00:24:46,920 --> 00:24:50,040 Speaker 1: on Bloomberg. It is debate night in Georgia. In the 455 00:24:50,119 --> 00:24:55,160 Speaker 1: gubernatorial race. Incumbent Republican Brian Kemp will debate Democratic challengers 456 00:24:55,200 --> 00:24:59,760 Speaker 1: Stacy Abrahams and libertarian Shane Hazel. A new poll shows 457 00:24:59,800 --> 00:25:02,320 Speaker 1: have any one percent of voters on both sides. I 458 00:25:02,400 --> 00:25:04,480 Speaker 1: think the future of the country is at stake when 459 00:25:04,520 --> 00:25:07,639 Speaker 1: they vote in November's mid term elections. That's according to 460 00:25:07,680 --> 00:25:10,520 Speaker 1: a new poll from the Associated Press and ORC Center 461 00:25:10,760 --> 00:25:14,520 Speaker 1: for Public Affairs Research. As we head into Thanksgiving and winter, 462 00:25:14,960 --> 00:25:18,560 Speaker 1: health officials are warning of another COVID search. Dr John 463 00:25:18,600 --> 00:25:22,520 Speaker 1: Brownstein says the emergence of omicron sub variants and the 464 00:25:22,600 --> 00:25:25,520 Speaker 1: slow uptake of the new COVID boosters could create a 465 00:25:25,560 --> 00:25:28,560 Speaker 1: new wave of infections. Well we know is this virus 466 00:25:28,680 --> 00:25:33,840 Speaker 1: continues to evolve and develops mutations that are selected for 467 00:25:34,000 --> 00:25:38,000 Speaker 1: because they can get around immunity immunity either through infection 468 00:25:38,160 --> 00:25:40,879 Speaker 1: or immunity through the vaccines. We just don't know the 469 00:25:40,960 --> 00:25:43,720 Speaker 1: extent at which these sub variants will be able to 470 00:25:43,760 --> 00:25:47,760 Speaker 1: get around. Dr Brownstein spoke to ABC Global News twenty 471 00:25:47,840 --> 00:25:50,840 Speaker 1: four hours a day on air and on Bloomberg Quicktake, 472 00:25:51,119 --> 00:25:54,040 Speaker 1: powered by more than twenty seven hundred journalists and analyst 473 00:25:54,080 --> 00:25:56,520 Speaker 1: and more than a hundred twenty countries. Michael Barr, this 474 00:25:56,600 --> 00:26:04,159 Speaker 1: is Bloomberg Na. Michael, thanks on Wall Street time for 475 00:26:04,160 --> 00:26:07,000 Speaker 1: the Bloombridge Sports update, which on Stash. All right, thanks Nathan, 476 00:26:07,080 --> 00:26:09,280 Speaker 1: Yankees and Guardians. Game five tonight at the stadium. The 477 00:26:09,359 --> 00:26:11,960 Speaker 1: winner goes they used him, the loser goes home. Jamison 478 00:26:12,080 --> 00:26:14,119 Speaker 1: Tyone will start for the yankst lost Game two of 479 00:26:14,200 --> 00:26:16,679 Speaker 1: the series and relief but as the starter Dione led 480 00:26:16,720 --> 00:26:18,720 Speaker 1: the Yanks and wins this year. They may use Nestor 481 00:26:18,800 --> 00:26:20,960 Speaker 1: Tortez and relief. Guardians are going with a pretty much 482 00:26:20,960 --> 00:26:23,760 Speaker 1: bullpen game. Yanks stayed alive in Cleveland and four to 483 00:26:23,920 --> 00:26:26,520 Speaker 1: winning Game four. Garrett Cole went seven inns and Harrison 484 00:26:26,600 --> 00:26:29,560 Speaker 1: Bader hit his third home run in four games, two run. 485 00:26:29,640 --> 00:26:33,000 Speaker 1: Sean Vader then looked ahead to tonight, there's a game 486 00:26:33,080 --> 00:26:34,880 Speaker 1: being played. We feel as they were in driver sive 487 00:26:35,200 --> 00:26:38,480 Speaker 1: um and that's how we remained dangerous um. I don't 488 00:26:38,480 --> 00:26:41,080 Speaker 1: think we want it any other way to return back 489 00:26:41,119 --> 00:26:45,080 Speaker 1: to the bronx um. So yeah, I mean, we're just 490 00:26:45,240 --> 00:26:47,440 Speaker 1: excited about the energy that we got moving forward and 491 00:26:48,320 --> 00:26:50,080 Speaker 1: listen to Marrows a new day. We're gonna go out 492 00:26:50,080 --> 00:26:53,000 Speaker 1: there and play our player best baseball tellers too. Aaron 493 00:26:53,000 --> 00:26:54,800 Speaker 1: Brudens shook up his lineup it last night played a 494 00:26:54,840 --> 00:26:57,399 Speaker 1: Waldo Cabrera at short stops that he'll do that again tonight. 495 00:26:57,480 --> 00:27:00,320 Speaker 1: The Giants four and thirteen last year and I've and 496 00:27:00,400 --> 00:27:02,640 Speaker 1: won this season third time where they came back from 497 00:27:02,680 --> 00:27:05,480 Speaker 1: a double digit defensit. They telled Baltimore by ten with 498 00:27:05,600 --> 00:27:08,800 Speaker 1: just over six minutes left and rallied to win to twenty. 499 00:27:09,119 --> 00:27:11,879 Speaker 1: Daniel Jones two TV passes se Juan Bartlins for the 500 00:27:11,920 --> 00:27:14,440 Speaker 1: game winner, set up by the Giants first interception of 501 00:27:14,520 --> 00:27:17,520 Speaker 1: the season. They sealed the win forcing to Lamar Jackson fumble. 502 00:27:17,560 --> 00:27:20,000 Speaker 1: The next four games with the Giants very winnable. The 503 00:27:20,080 --> 00:27:22,480 Speaker 1: Jets at four and two. They've also won three in 504 00:27:22,520 --> 00:27:24,720 Speaker 1: a row at twenty seven to ten upset win at 505 00:27:24,760 --> 00:27:27,439 Speaker 1: Green Base of the Packers last two weeks with rosses 506 00:27:27,520 --> 00:27:29,040 Speaker 1: to the two New York teams Jets at three and 507 00:27:29,080 --> 00:27:31,199 Speaker 1: oh on the road. The Big a FC game won 508 00:27:31,240 --> 00:27:33,320 Speaker 1: by Buffalo Store with a minute left to win at 509 00:27:33,440 --> 00:27:36,400 Speaker 1: Kansas City and the NFC each showdown last night won 510 00:27:36,480 --> 00:27:41,600 Speaker 1: by still unbeaten Philadelphia seventeen over Dallas. John stas Bloomberg 511 00:27:41,640 --> 00:27:44,639 Speaker 1: Sports Nap Thanks John seven on Wall Street Time for 512 00:27:44,720 --> 00:27:47,959 Speaker 1: the Tri State Business Report with Bloomberg's Joan Donnaker. New 513 00:27:48,040 --> 00:27:50,520 Speaker 1: York or Nowhere is opening a permanent store in the 514 00:27:50,600 --> 00:27:53,280 Speaker 1: heart of Nohol, the street where brands started during the 515 00:27:53,359 --> 00:27:56,879 Speaker 1: pandemic became so popular, according to Women's Where Daily, a 516 00:27:57,000 --> 00:27:59,399 Speaker 1: pop up store It's set up last year drew a 517 00:27:59,520 --> 00:28:01,960 Speaker 1: crowd that waited in line for two hours on some 518 00:28:02,160 --> 00:28:04,840 Speaker 1: days for a chance to buy the brands hoodies, t shirts, 519 00:28:04,840 --> 00:28:08,480 Speaker 1: and sweatpants. A different sort of preview in Times Square 520 00:28:08,640 --> 00:28:12,160 Speaker 1: for Taylor Swift, her new album deb used Friday last night, 521 00:28:12,280 --> 00:28:16,119 Speaker 1: Rolling Stones as a huge Spotify billboard in Times Square 522 00:28:16,200 --> 00:28:19,520 Speaker 1: revealed a line of lyrics from the album Midnight's Spotify 523 00:28:19,640 --> 00:28:23,800 Speaker 1: tease to second reveal on Instagram. Inflation is a huge problem, 524 00:28:23,840 --> 00:28:26,320 Speaker 1: but in some places it's a lot worse than in others. 525 00:28:26,640 --> 00:28:29,480 Speaker 1: Wallet Hub found the greatest increase in the consumer price 526 00:28:29,560 --> 00:28:32,440 Speaker 1: index over the past year has been in the Phoenix area, 527 00:28:32,880 --> 00:28:36,080 Speaker 1: but New York, Newark, and Jersey City ranks on its 528 00:28:36,200 --> 00:28:38,920 Speaker 1: list the increase in inflation in the past year coming 529 00:28:38,960 --> 00:28:42,480 Speaker 1: to six point two percent. That's the Bloomberg Tri State 530 00:28:42,520 --> 00:28:46,440 Speaker 1: Business Report on Joan Donneger. Thanks jo wall Street. Bloomberg 531 00:28:46,560 --> 00:28:48,880 Speaker 1: Radio is on the air from San Francisco to New York, 532 00:28:48,960 --> 00:28:51,240 Speaker 1: London to Hong Kong. Let's check in with our global 533 00:28:51,280 --> 00:28:53,040 Speaker 1: news team for some of the top stories heard on 534 00:28:53,120 --> 00:28:58,840 Speaker 1: our three hundred affiliate radio stations around the world. I 535 00:28:59,040 --> 00:29:02,040 Speaker 1: Steve Potis on ten ten Wins in New York. We're 536 00:29:02,120 --> 00:29:05,720 Speaker 1: talking about streetwear seller New York Are Nowhere opening its 537 00:29:05,800 --> 00:29:10,240 Speaker 1: first permanent flagship store, um Corney Donahoe on w h 538 00:29:10,560 --> 00:29:14,240 Speaker 1: S and Louisville Progress pitching to regulator Sederal lower prices 539 00:29:14,400 --> 00:29:17,560 Speaker 1: if they approved the deal to by Albertson's. I'm Stephen 540 00:29:17,600 --> 00:29:20,200 Speaker 1: Carol and Bloomberg d a B Digital Radio in London. 541 00:29:20,320 --> 00:29:22,440 Speaker 1: We've been reporting on the rally and guilts as the 542 00:29:22,520 --> 00:29:25,440 Speaker 1: Chancellor brings forward the announcement to some of the SPASCO measures. 543 00:29:25,960 --> 00:29:29,200 Speaker 1: I'm Genus Servetti in for wfl A in Orlando. I'm 544 00:29:29,200 --> 00:29:33,080 Speaker 1: talking about research showing that tourist tables like Orlando are 545 00:29:33,160 --> 00:29:36,400 Speaker 1: seeing more revenue from taxes on hotel stays than their 546 00:29:36,440 --> 00:29:40,400 Speaker 1: counterparts that rely on business focus travel. Those are some 547 00:29:40,520 --> 00:29:43,440 Speaker 1: of the stories our twenty hundred Bloomberg journalists and analysts 548 00:29:43,440 --> 00:29:45,600 Speaker 1: are working on this morning around the world. It's five 549 00:29:45,680 --> 00:29:48,560 Speaker 1: thirty nine on Wall Street. The following is an editorial 550 00:29:48,720 --> 00:29:52,680 Speaker 1: from Bloomberg Opinion. This editorial was written by the Bloomberg 551 00:29:52,880 --> 00:29:56,080 Speaker 1: Editorial Board. If the Federal Reserve was hoping for some 552 00:29:56,360 --> 00:30:01,120 Speaker 1: sign that inflation is subsiding, it was cruelly disabused by 553 00:30:01,200 --> 00:30:05,240 Speaker 1: the latest figures for consumer prices. The headline rate fell 554 00:30:05,360 --> 00:30:08,800 Speaker 1: slightly in September, from eight point three percent to eight 555 00:30:08,880 --> 00:30:12,080 Speaker 1: point two percent, but the more telling measure of core 556 00:30:12,200 --> 00:30:17,160 Speaker 1: inflation reached the highest rate in forty years. The message 557 00:30:17,440 --> 00:30:21,920 Speaker 1: was clear. Far from relaxing its recent pace of monetary tightening, 558 00:30:22,280 --> 00:30:26,640 Speaker 1: the Fed might have to raise interest rates faster than expected. 559 00:30:27,040 --> 00:30:30,200 Speaker 1: It's tempting to think that, having fallen behind the curve 560 00:30:30,240 --> 00:30:33,800 Speaker 1: at the outset, the Fed should now surprise investors in 561 00:30:33,920 --> 00:30:38,920 Speaker 1: the other direction by announcing an unexpectedly aggressive tightening. But 562 00:30:39,120 --> 00:30:43,239 Speaker 1: this approach would all but guarantee a recession um one 563 00:30:43,320 --> 00:30:47,480 Speaker 1: that could quickly turn nasty. That makes the Fed's preference 564 00:30:47,560 --> 00:30:53,600 Speaker 1: for gradualism understandable and for the moment wise. This editorial 565 00:30:53,800 --> 00:30:57,520 Speaker 1: was written by the Bloomberg Editorial Board. For more Bloomberg opinion, 566 00:30:57,640 --> 00:31:00,320 Speaker 1: please go to Bloomberg dot com, slash open in or 567 00:31:00,640 --> 00:31:03,960 Speaker 1: opie I n go on the Bloomberg terminal. These has 568 00:31:04,040 --> 00:31:08,000 Speaker 1: been Bloomberg opinion, and you can hear Bloomberg opinion editorials 569 00:31:08,040 --> 00:31:11,120 Speaker 1: every weekday. At this time, terminal customers can read more 570 00:31:11,320 --> 00:31:15,880 Speaker 1: at ope I n go. Futures moving higher this morning. 571 00:31:15,960 --> 00:31:23,520 Speaker 1: You're listening to Bloomberg Daybreak Bloomberg eleven three oh Weather 572 00:31:23,560 --> 00:31:25,680 Speaker 1: mostly cloudy today, chance for a few showers with highs 573 00:31:25,680 --> 00:31:27,840 Speaker 1: in the upper sixties. It will turn mostly sunny and 574 00:31:28,000 --> 00:31:32,120 Speaker 1: cooler tomorrow. Highs your fifty five degrees tomorrow and Wednesday. 575 00:31:32,280 --> 00:31:38,640 Speaker 1: Right now fifty eight in Central Park Markets. Headlines and 576 00:31:38,840 --> 00:31:42,040 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 577 00:31:42,200 --> 00:31:45,800 Speaker 1: the Bloomberg Business Out and at Bloomberg Dictate. He's a 578 00:31:45,840 --> 00:31:55,000 Speaker 1: Bloomberg Business Lash and I'm Cameron Moscow and the pound 579 00:31:55,080 --> 00:31:58,160 Speaker 1: is rallying, UK bond surging him at expectations at Moura, 580 00:31:58,240 --> 00:32:01,320 Speaker 1: Prime Minister list Trust's package of unfunded tax cuts will 581 00:32:01,360 --> 00:32:04,959 Speaker 1: be reversed. Stocks are rising. US stock index futures are 582 00:32:05,040 --> 00:32:07,320 Speaker 1: as well. Investors are preparing for a number of key 583 00:32:07,360 --> 00:32:10,000 Speaker 1: earnings reports this week, and we check the markets every 584 00:32:10,000 --> 00:32:12,720 Speaker 1: fifteen minutes throughout the trading day. On bloomberg S and 585 00:32:12,760 --> 00:32:15,760 Speaker 1: P futures at forty points now futures up two hundred 586 00:32:15,840 --> 00:32:18,520 Speaker 1: seventy nine and NASTAG futures have a hundred forty. The 587 00:32:18,640 --> 00:32:21,400 Speaker 1: decks in Germany's up sixtensive up percent. The ten year 588 00:32:21,440 --> 00:32:24,840 Speaker 1: treasury is up eighteen thirty seconds. You have three point 589 00:32:24,960 --> 00:32:26,880 Speaker 1: nine four percent, and they yield on the two year 590 00:32:26,960 --> 00:32:30,040 Speaker 1: four point four three percent. Nine. Mex Hered oil is 591 00:32:30,120 --> 00:32:32,040 Speaker 1: up tenth of a percent of ten cents at eighty 592 00:32:32,080 --> 00:32:34,600 Speaker 1: five dollars seventy one cents a barrel called Mexs gold 593 00:32:34,600 --> 00:32:36,880 Speaker 1: there is up eight ten percent, or thirteen dollars seventy 594 00:32:36,960 --> 00:32:40,400 Speaker 1: cents at sixteen sixty two forty announced. The euro point 595 00:32:40,560 --> 00:32:42,840 Speaker 1: nine seven five one against the dollar, the N one 596 00:32:42,960 --> 00:32:46,120 Speaker 1: forty eight point six seven and that's a Bloomberg Business Flash. 597 00:32:46,200 --> 00:32:48,240 Speaker 1: Now here's Michael Barr with more on what's going on 598 00:32:48,400 --> 00:32:51,000 Speaker 1: around the world. Michael Karen, thank you very much. More 599 00:32:51,120 --> 00:32:54,880 Speaker 1: Russian attacks on Ukraine's capitol. Officials that he was hit 600 00:32:55,000 --> 00:32:58,560 Speaker 1: this morning by a wave of Kama Kazi drones, damaging 601 00:32:58,640 --> 00:33:02,080 Speaker 1: residential buildings and kill at least one person in around 602 00:33:02,120 --> 00:33:06,920 Speaker 1: A deadly fire and gunfire erupted inside Tehron's notorious Evan 603 00:33:07,000 --> 00:33:11,040 Speaker 1: prison over the weekend. Four people died from smoke inhalation, 604 00:33:11,160 --> 00:33:14,400 Speaker 1: according to officials, in more than sixty injured. The compound 605 00:33:14,520 --> 00:33:17,840 Speaker 1: is holding hundreds of anti government protesters arrested in a run. 606 00:33:18,440 --> 00:33:21,560 Speaker 1: In baseball, the deciding Game five is tonight between the 607 00:33:21,640 --> 00:33:25,240 Speaker 1: Yankees and the Guardians in their A L d yes Yesterday, 608 00:33:25,320 --> 00:33:28,160 Speaker 1: New York survived beating Cleveland four two in Game four. 609 00:33:28,680 --> 00:33:32,360 Speaker 1: In the NFL, the Giants beat the Ravens, the Jets one, 610 00:33:32,440 --> 00:33:35,960 Speaker 1: the Patriots one, and the forty Niners lost. Global News 611 00:33:36,040 --> 00:33:39,360 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 612 00:33:39,640 --> 00:33:42,720 Speaker 1: powered by more than twenty seven hundred journalists and analysts 613 00:33:42,720 --> 00:33:45,160 Speaker 1: and more than a hundred twenty countries, him Michael Barr 614 00:33:45,200 --> 00:33:47,560 Speaker 1: and This is Bloomberg. Nathan, Okay, Michael. Thanks, It's just 615 00:33:47,640 --> 00:33:50,040 Speaker 1: about five forty nine on Wall Street. Live from the 616 00:33:50,040 --> 00:33:54,120 Speaker 1: Bloomberg Interactive Broker studios. This is Bloomberg Daybreak and we 617 00:33:54,240 --> 00:33:57,520 Speaker 1: get more bank earnings this morning. The parade continues with 618 00:33:57,760 --> 00:34:01,440 Speaker 1: Bank of America opening it's third quarterbooks before the opening 619 00:34:01,520 --> 00:34:05,000 Speaker 1: bell this morning in Bloomberg Global Finance correspondent Shanali Bassik 620 00:34:05,200 --> 00:34:09,040 Speaker 1: is back with us this morning to preview those results. Shanali, 621 00:34:09,280 --> 00:34:12,600 Speaker 1: good morning. The story we have gotten so far from 622 00:34:12,719 --> 00:34:16,080 Speaker 1: the four banks we've heard from is the consumers holding 623 00:34:16,200 --> 00:34:20,359 Speaker 1: up even if investment banking and some of those other 624 00:34:20,640 --> 00:34:24,960 Speaker 1: aspects of the banking industry are struggling. If that story 625 00:34:25,160 --> 00:34:27,480 Speaker 1: holds up for Bank of America, we could see some 626 00:34:27,560 --> 00:34:30,600 Speaker 1: pretty decent numbers today. We could. It depends you. It's 627 00:34:30,719 --> 00:34:33,000 Speaker 1: interesting thing here is Brian morning, and the CEO Bank 628 00:34:33,040 --> 00:34:36,839 Speaker 1: of America has said consistently that the consumer is holding up. 629 00:34:37,200 --> 00:34:39,520 Speaker 1: The question is does he share the same views as 630 00:34:39,640 --> 00:34:43,920 Speaker 1: Jamie Diamond where who believes that next year will be 631 00:34:44,080 --> 00:34:47,120 Speaker 1: much harder for the consumer and that the excess balance 632 00:34:47,160 --> 00:34:49,160 Speaker 1: sheet that the consumer has will start to dry up 633 00:34:49,160 --> 00:34:51,359 Speaker 1: into the middle of next year. The other thing about 634 00:34:51,360 --> 00:34:55,000 Speaker 1: Bank of America is can it show that net interest 635 00:34:55,120 --> 00:34:58,799 Speaker 1: income is coming in above expectations this year? Because JP 636 00:34:58,960 --> 00:35:03,360 Speaker 1: Morgan raised their projections by more than three billion dollars 637 00:35:03,480 --> 00:35:06,200 Speaker 1: for the year in net interest income. Now, can both 638 00:35:06,280 --> 00:35:08,000 Speaker 1: of those banks keep this up in the face of 639 00:35:08,040 --> 00:35:11,560 Speaker 1: a tougher economic environment. Will also be looking for provisions 640 00:35:11,600 --> 00:35:14,840 Speaker 1: for loan losses at Bank of America and any sense 641 00:35:15,000 --> 00:35:18,560 Speaker 1: of whether they think any credit quality is deteriorating. Yeah, 642 00:35:18,760 --> 00:35:22,080 Speaker 1: thinking of the net interest income story, I'm sort of 643 00:35:22,120 --> 00:35:25,520 Speaker 1: wondering whether we're going to see any movement in terms 644 00:35:25,560 --> 00:35:28,200 Speaker 1: of these higher interest rates that are working their way 645 00:35:28,280 --> 00:35:31,760 Speaker 1: through the economy now are going to translate into higher 646 00:35:31,800 --> 00:35:35,400 Speaker 1: interest rates for depositors, and what that could mean for 647 00:35:35,719 --> 00:35:39,799 Speaker 1: n I I. It's truly a hot button issue. Lawmakers 648 00:35:39,840 --> 00:35:43,160 Speaker 1: were asking about it. The banker said that all the 649 00:35:43,200 --> 00:35:45,520 Speaker 1: banks where they testified in Washington a couple of weeks ago, 650 00:35:45,640 --> 00:35:49,200 Speaker 1: have said that they will eventually raise savings rates for depositors. 651 00:35:49,280 --> 00:35:51,440 Speaker 1: But you heard what Jamie Diamond and JP Morgan had 652 00:35:51,480 --> 00:35:54,480 Speaker 1: to say last week, and the reality is is that 653 00:35:54,640 --> 00:35:58,839 Speaker 1: they won't do it until they competitively have to do so. So, yes, 654 00:35:58,960 --> 00:36:01,400 Speaker 1: there's a lag in interest rate rises from when you 655 00:36:01,520 --> 00:36:03,680 Speaker 1: see the federal reserve hikes to what you're seeing in 656 00:36:03,760 --> 00:36:06,600 Speaker 1: the banking system. But there can be even more of 657 00:36:06,640 --> 00:36:10,640 Speaker 1: an overhang depending on how competitive that business gets. Now, 658 00:36:10,800 --> 00:36:14,480 Speaker 1: even before we hear from Goldman Sacks tomorrow, we're getting 659 00:36:14,600 --> 00:36:17,319 Speaker 1: some more fleshed out reporting on what Bloomberg has been 660 00:36:17,440 --> 00:36:22,440 Speaker 1: looking at about what looks like another major restructuring coming 661 00:36:22,680 --> 00:36:26,239 Speaker 1: under CEO David Solomon. What is going on here, It's 662 00:36:26,280 --> 00:36:28,800 Speaker 1: truly a moment. This is a way for Goldman Sachs 663 00:36:28,840 --> 00:36:32,239 Speaker 1: to really turn up the heat on its businesses, ask 664 00:36:32,320 --> 00:36:35,640 Speaker 1: for performance again at a tough time. And remember this 665 00:36:35,800 --> 00:36:37,879 Speaker 1: causes a lot of anxieties for a lot of folks 666 00:36:37,920 --> 00:36:40,560 Speaker 1: because there's a lot of head count management changes that 667 00:36:40,680 --> 00:36:43,560 Speaker 1: happen as a result of these reorganizations. It's the second 668 00:36:43,640 --> 00:36:48,920 Speaker 1: major reorganization under David Solomon. He announced very large plans 669 00:36:48,960 --> 00:36:51,040 Speaker 1: and many of those plans have been coming to fruition. 670 00:36:51,440 --> 00:36:55,160 Speaker 1: But there's a lot of existential questions around that consumer business, 671 00:36:55,440 --> 00:36:58,160 Speaker 1: the role it plays inside of Goldman Sacks, which still 672 00:36:58,440 --> 00:37:01,800 Speaker 1: generates often more than fifty percent of its net revenue 673 00:37:02,120 --> 00:37:07,680 Speaker 1: from investment, banking and trading operations. Which have absolutely blown 674 00:37:07,800 --> 00:37:10,480 Speaker 1: through the roof the last couple of years. So what 675 00:37:10,640 --> 00:37:14,279 Speaker 1: does the consumer banking division mean? The asset manager and 676 00:37:14,400 --> 00:37:17,759 Speaker 1: private wealth businesses are going to be recombined again under 677 00:37:17,800 --> 00:37:20,440 Speaker 1: Mark Knockman, whose star has just been rising. At Goldman 678 00:37:20,520 --> 00:37:23,719 Speaker 1: Sachs rent every major business line under David Solomon, and 679 00:37:24,480 --> 00:37:26,919 Speaker 1: now we'll be running another large part of the firm 680 00:37:27,239 --> 00:37:29,560 Speaker 1: that has the potential to highlight itself in a bigger way. 681 00:37:29,680 --> 00:37:31,120 Speaker 1: And of course you're gonna be talking a lot more 682 00:37:31,160 --> 00:37:34,239 Speaker 1: about Goldman Sachs when they report their earnings tomorrow. The 683 00:37:34,400 --> 00:37:37,680 Speaker 1: story this morning Bank of America, those results coming in 684 00:37:37,840 --> 00:37:41,279 Speaker 1: before the opening bell, Bloombridge. Shinali Bassik as always, thanks 685 00:37:41,320 --> 00:37:46,320 Speaker 1: for steering us through bank earnings. Really appreciated. Karen Nathan, 686 00:37:46,400 --> 00:37:49,120 Speaker 1: thank you a five fifty two on Wall Street time 687 00:37:49,160 --> 00:37:51,440 Speaker 1: for our Bloomberg Law Report. It has brought to you 688 00:37:51,560 --> 00:37:56,280 Speaker 1: by American Arbitration Association. Business disputes are inevitable resolve fester 689 00:37:56,400 --> 00:38:00,239 Speaker 1: with the American Arbitration Association, the global leader in alternative 690 00:38:00,239 --> 00:38:03,360 Speaker 1: dispute resolution for over ninety years. More at a dr 691 00:38:03,600 --> 00:38:06,000 Speaker 1: dot org. Let's get to the legal stories we are 692 00:38:06,040 --> 00:38:12,759 Speaker 1: watching this morning from Bloomberg's Jeff Bellinger the Department of 693 00:38:12,800 --> 00:38:16,600 Speaker 1: Health and Human Services as Medicare open enrollment has begun 694 00:38:16,800 --> 00:38:20,880 Speaker 1: and will remain open through December seven. Internal Revenue Service 695 00:38:20,960 --> 00:38:23,960 Speaker 1: officials say the agency has attendant to deadline for the 696 00:38:24,120 --> 00:38:27,640 Speaker 1: end of the year to complete most regulatory work implementing 697 00:38:27,719 --> 00:38:32,080 Speaker 1: workplace retirement Plan changes, a divided federal court rule that 698 00:38:32,160 --> 00:38:36,080 Speaker 1: a Kroger subsidiary must arbitrate a union's claim that it 699 00:38:36,239 --> 00:38:40,759 Speaker 1: represents workers at a warehouse that handles orders from Walgreen's Pharmacy's. 700 00:38:41,000 --> 00:38:45,840 Speaker 1: Bloomberg Law everything you need, all on one legal research platform, 701 00:38:46,040 --> 00:38:50,640 Speaker 1: including guidance analysis and Bloomberg Market Intelligence. Find out more 702 00:38:50,719 --> 00:38:54,960 Speaker 1: at Bloomberg Law dot com. All right, Jeff, Thanks, Now, 703 00:38:55,000 --> 00:38:58,160 Speaker 1: another legal story we're watching. Rodney Read has been on 704 00:38:58,280 --> 00:39:01,920 Speaker 1: death row in Texas for more than two decades. His 705 00:39:02,080 --> 00:39:05,320 Speaker 1: case has gotten attention from celebrities like Kim Kardashian and 706 00:39:05,440 --> 00:39:08,640 Speaker 1: Beyonce since new evidence has come to light, but Reid 707 00:39:08,719 --> 00:39:11,120 Speaker 1: has been unable to get the State of Texas to 708 00:39:11,239 --> 00:39:13,600 Speaker 1: test the murder weapon for d n A and his 709 00:39:13,760 --> 00:39:16,839 Speaker 1: murder case. Now as leygal fight is at the Supreme Court, 710 00:39:16,960 --> 00:39:19,360 Speaker 1: the justices will decide whether Reid gets the d n 711 00:39:19,440 --> 00:39:22,319 Speaker 1: A testing in in case that focuses only on whether 712 00:39:22,360 --> 00:39:24,799 Speaker 1: he filed this federal claim too late and for more 713 00:39:24,800 --> 00:39:28,320 Speaker 1: of Bloomberg's during Grosso speaks to Bloomberg laws Jordan Reuben. 714 00:39:28,560 --> 00:39:31,680 Speaker 1: So this is a federal civil rights claim, that's right. 715 00:39:31,880 --> 00:39:35,160 Speaker 1: So what happened is this in trying to get DNA testing, 716 00:39:35,600 --> 00:39:38,680 Speaker 1: Rodney read pursued that claim in the state court, but 717 00:39:38,920 --> 00:39:41,440 Speaker 1: that claim was denied at the trial court level and 718 00:39:41,520 --> 00:39:44,560 Speaker 1: then up through the state criminal appeals court. And so 719 00:39:44,719 --> 00:39:47,960 Speaker 1: after that denial, Rodney Reid then filed a federal civil 720 00:39:48,080 --> 00:39:52,399 Speaker 1: rights claim challenging the denial on the state level, saying 721 00:39:52,440 --> 00:39:56,400 Speaker 1: that those state processes violated his due process. And so 722 00:39:56,520 --> 00:40:00,759 Speaker 1: that's the crux of his federal claim. The problem is 723 00:40:00,840 --> 00:40:03,239 Speaker 1: that textas is saying that he waited too long to 724 00:40:03,400 --> 00:40:06,600 Speaker 1: bring the claim. So the question at the Supreme Court 725 00:40:06,760 --> 00:40:09,920 Speaker 1: is when the statute of limitation starts to run for 726 00:40:10,120 --> 00:40:14,360 Speaker 1: a federal claim that state DNA testing procedures violated due process. 727 00:40:14,719 --> 00:40:17,160 Speaker 1: Does it start to run when the state trial court 728 00:40:17,239 --> 00:40:19,840 Speaker 1: denies testing, or does it start to run when the 729 00:40:19,920 --> 00:40:22,680 Speaker 1: state appeals process has played out? And so it's this 730 00:40:22,880 --> 00:40:26,680 Speaker 1: very technical sort of question. Was there any talk at 731 00:40:26,719 --> 00:40:29,960 Speaker 1: all during the oral arguments about the fact that he 732 00:40:30,160 --> 00:40:35,279 Speaker 1: claims he's innocent and the DNA test could possibly clear him. 733 00:40:35,840 --> 00:40:38,120 Speaker 1: It's hard to see why you wouldn't give someone a 734 00:40:38,239 --> 00:40:42,320 Speaker 1: DNA test, right, So, in terms of kind of the 735 00:40:42,480 --> 00:40:46,719 Speaker 1: reality of the case, that wasn't the subject of the arguments, 736 00:40:46,800 --> 00:40:49,640 Speaker 1: and that's often the case at the Surreme Court. Nonetheless, 737 00:40:49,800 --> 00:40:54,160 Speaker 1: Threads lawyers certainly didn't mention the innocence aspect during the argument, 738 00:40:54,320 --> 00:40:57,520 Speaker 1: But there wasn't really this straight up question posed to 739 00:40:57,640 --> 00:41:00,239 Speaker 1: Texas of why don't you just do the test us thing? 740 00:41:00,320 --> 00:41:03,080 Speaker 1: They're really focused for on the technical issue, as is 741 00:41:03,320 --> 00:41:05,839 Speaker 1: often the case at the court. Could you read where 742 00:41:05,880 --> 00:41:09,440 Speaker 1: the jauntices were on this issue at all? I definitely 743 00:41:09,480 --> 00:41:12,400 Speaker 1: saw justices on both sides of the issue. For example, 744 00:41:12,520 --> 00:41:16,920 Speaker 1: Justice Thomas seems the most likely to vote with the state. 745 00:41:17,160 --> 00:41:20,080 Speaker 1: His question to both sides was the same, which was 746 00:41:20,480 --> 00:41:23,719 Speaker 1: what liberty interest was read even deprived of in the 747 00:41:23,800 --> 00:41:26,400 Speaker 1: first instance, and who deprived him of it? But he 748 00:41:26,520 --> 00:41:28,040 Speaker 1: was kind of on his own with that. Most of 749 00:41:28,080 --> 00:41:32,080 Speaker 1: the justices were more so grappling with the crux of 750 00:41:32,239 --> 00:41:34,960 Speaker 1: the issue that was presented in the case. But I 751 00:41:35,120 --> 00:41:38,000 Speaker 1: really didn't get a sense that there was a majority 752 00:41:38,200 --> 00:41:41,960 Speaker 1: coalescing around any particular answer to this question, at least 753 00:41:42,040 --> 00:41:44,399 Speaker 1: at the argument. So it's another one of these where 754 00:41:44,440 --> 00:41:46,000 Speaker 1: we're going to have to wait and see. I do 755 00:41:46,160 --> 00:41:49,000 Speaker 1: think that Read has a shot, although you really never 756 00:41:49,200 --> 00:41:52,759 Speaker 1: know at the court because the Court has been very 757 00:41:52,880 --> 00:41:56,480 Speaker 1: skeptical of claims coming from death row. So even though 758 00:41:56,520 --> 00:41:59,319 Speaker 1: there was some support Read at the argument, including from 759 00:41:59,360 --> 00:42:01,840 Speaker 1: Justice that it that would only get him potentially to 760 00:42:01,920 --> 00:42:04,600 Speaker 1: four justices when he would need five. I think that 761 00:42:04,680 --> 00:42:06,840 Speaker 1: that's possible in the case, but we just won't know 762 00:42:07,000 --> 00:42:10,280 Speaker 1: until we have the decision. And as Bloomberg Laws Jordan 763 00:42:10,360 --> 00:42:12,920 Speaker 1: and Ruben speaking at the Bloomberg Joan Grasso. Catch more 764 00:42:12,960 --> 00:42:15,719 Speaker 1: of that interview, plus analysis of the latest legal news, 765 00:42:16,000 --> 00:42:18,960 Speaker 1: by subscribing to the Bloomberg Law Podcast or downloading this 766 00:42:19,000 --> 00:42:22,560 Speaker 1: show at Bloomberg dot com slash podcast. Attorneys can find 767 00:42:22,600 --> 00:42:26,160 Speaker 1: exceptional legal research and business development tools at Bloomberg Law 768 00:42:26,320 --> 00:42:29,880 Speaker 1: dot com and on the Bloomberg terminal at b law Go. 769 00:42:30,960 --> 00:42:33,600 Speaker 1: SNP Future is up forty one points this morning. Dal 770 00:42:33,760 --> 00:42:36,760 Speaker 1: Future is of two hundred eighty four and nasday Futures 771 00:42:36,800 --> 00:42:40,240 Speaker 1: a one hundred thirty nine. Still ahead on Bloomberg Daybreak 772 00:42:40,280 --> 00:42:42,239 Speaker 1: and check on the business headlines and all the news 773 00:42:42,360 --> 00:42:45,560 Speaker 1: you need to start your day. And this is Bloomberg.