1 00:00:02,600 --> 00:00:05,960 Speaker 1: Live from the Bloomberg Interacted Burgers Studios. This is Bloomberg 2 00:00:06,040 --> 00:00:09,840 Speaker 1: day Break for Thursday, November three. Coming up, the Shower 3 00:00:10,200 --> 00:00:14,440 Speaker 1: stocks drop as the Fed continues it's aggressive battle against inflation. 4 00:00:14,560 --> 00:00:16,960 Speaker 1: The Bank of England set to deliver its biggest rate 5 00:00:17,000 --> 00:00:20,200 Speaker 1: increase in thirty three years. Massive job cuts may be 6 00:00:20,280 --> 00:00:23,320 Speaker 1: coming at Twitter and China lucks down the world's largest 7 00:00:23,360 --> 00:00:26,880 Speaker 1: iPhone factory. The man accused of shooting two Newark police 8 00:00:26,880 --> 00:00:31,160 Speaker 1: officers has been arrested. Plus President Biden warrens voters democracy 9 00:00:31,240 --> 00:00:33,680 Speaker 1: is at stake in the mid terms. I'm Michael blar 10 00:00:33,880 --> 00:00:37,280 Speaker 1: More and I'm John Stas Shower Sports, baseball history, the 11 00:00:37,280 --> 00:00:40,000 Speaker 1: Aftros that combine no hither on the Phillies that tie 12 00:00:40,040 --> 00:00:44,720 Speaker 1: the World Series than Nicks lost to the Hawks. That's 13 00:00:44,720 --> 00:00:48,720 Speaker 1: all training ahead on Bloomberg Daybreak on Bloomberg Eliven Free 14 00:00:48,720 --> 00:00:53,120 Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one 15 00:00:53,159 --> 00:00:57,640 Speaker 1: oh six one, Boston Bloomberg nine sixties and Francisco Sirius 16 00:00:57,800 --> 00:01:00,880 Speaker 1: x AM one nineteen and around the world on Bloomberg 17 00:01:00,960 --> 00:01:08,080 Speaker 1: Radio Dot Carmen via the Bloomberg Business App. Good morning, 18 00:01:08,080 --> 00:01:11,080 Speaker 1: I'm Nathan Higer and I'm Karen Moscow in US Dock 19 00:01:11,160 --> 00:01:13,960 Speaker 1: Index futures are lower this morning. We're coming up to 20 00:01:14,000 --> 00:01:15,600 Speaker 1: five oh one on Wall Street, and we check the 21 00:01:15,680 --> 00:01:19,000 Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg, 22 00:01:19,120 --> 00:01:22,920 Speaker 1: SMP future is down about five points down, futures down sixteen, 23 00:01:23,040 --> 00:01:26,720 Speaker 1: nasdack futures down twenty three, and the Tenuere treasury down eleven. 24 00:01:26,760 --> 00:01:29,520 Speaker 1: Thirty seconds, he had four point one four percent and 25 00:01:29,560 --> 00:01:33,440 Speaker 1: they yield on a two year four point six eight percent. Nathan, Karen, 26 00:01:33,480 --> 00:01:36,480 Speaker 1: we begin with the Fed fueled sell off on Wall Street. 27 00:01:36,520 --> 00:01:39,039 Speaker 1: The SMP five hundred suffered its worst route on a 28 00:01:39,040 --> 00:01:43,039 Speaker 1: FED decision day since January one. It plunged two and 29 00:01:43,080 --> 00:01:46,199 Speaker 1: a half percent. As expected, the Fed did raise rates 30 00:01:46,240 --> 00:01:49,080 Speaker 1: seventy five basis points for a fourth straight time, but 31 00:01:49,160 --> 00:01:52,640 Speaker 1: stocks sold off. During Chairman J. Powell's news conference, he 32 00:01:52,760 --> 00:01:55,800 Speaker 1: made it clear more rate hikes are coming. It is 33 00:01:56,160 --> 00:01:59,160 Speaker 1: very premature to be thinking about pausing. So people when 34 00:01:59,160 --> 00:02:01,360 Speaker 1: they hear lags, they think about about a pause. It's 35 00:02:01,480 --> 00:02:04,480 Speaker 1: very premature in my view to to to think about 36 00:02:04,600 --> 00:02:07,360 Speaker 1: or be talking about pausing our rate hike. We we have, 37 00:02:07,560 --> 00:02:10,079 Speaker 1: we have a ways to go. Our policy we need 38 00:02:10,120 --> 00:02:13,919 Speaker 1: ongoing rate hikes to get to UM to that level. 39 00:02:14,480 --> 00:02:16,400 Speaker 1: The move by j Pale and the FED lifts a 40 00:02:16,440 --> 00:02:19,360 Speaker 1: benchmark to a three and three quarter to four percent range. 41 00:02:19,400 --> 00:02:22,760 Speaker 1: That's from nearly zero in March. Well reaction pour it 42 00:02:22,800 --> 00:02:25,960 Speaker 1: into the FED keeping its aggressive tone. Scott Minored, as 43 00:02:26,040 --> 00:02:29,760 Speaker 1: chief investment officer at Guggenheim, the message is loud and clear. 44 00:02:29,960 --> 00:02:33,800 Speaker 1: You know, we're going to keep raising rates until we 45 00:02:33,880 --> 00:02:41,040 Speaker 1: get price stability, and that's probably gonna go into thank Guggenheim. 46 00:02:41,160 --> 00:02:44,359 Speaker 1: Scott Minor has said the FED may raise rates significantly 47 00:02:44,440 --> 00:02:47,480 Speaker 1: higher than five to five and a half percent expectations 48 00:02:47,480 --> 00:02:49,760 Speaker 1: in the first half of next year. We also caught 49 00:02:49,840 --> 00:02:53,079 Speaker 1: up with a black Rock senior portfolio manager, Jeffrey Rosenberg. 50 00:02:53,320 --> 00:02:55,679 Speaker 1: The FED does not want to see a replay of 51 00:02:55,760 --> 00:02:57,800 Speaker 1: what we saw in July. It does not want to 52 00:02:57,919 --> 00:03:03,680 Speaker 1: see premature financial condition easing on the signs of any 53 00:03:03,800 --> 00:03:08,200 Speaker 1: FED pivot. Black Rocks Senior portfolio manager Jeffrey Rosenberg's sentiments 54 00:03:08,200 --> 00:03:11,400 Speaker 1: were echoed by a former Philadelphia FED president, Charles Plosser. 55 00:03:11,760 --> 00:03:15,840 Speaker 1: They know they can't they can't just stop because it 56 00:03:15,880 --> 00:03:18,679 Speaker 1: won't work. It's a story who experience teaches us that 57 00:03:19,400 --> 00:03:22,520 Speaker 1: so um, they don't have much choice if they really 58 00:03:22,520 --> 00:03:26,840 Speaker 1: wanted to commit to lower inflation. Former Philadelphia Fed President 59 00:03:26,919 --> 00:03:29,560 Speaker 1: Charles Plaster made the comments in an interview with Bloomberg's 60 00:03:29,600 --> 00:03:32,360 Speaker 1: Kathleen Hayes, and we'll bring you more of that conversation 61 00:03:32,480 --> 00:03:34,520 Speaker 1: a little later in the program. Well, the focus on 62 00:03:34,600 --> 00:03:37,840 Speaker 1: monetary policy now Karen turns to Europe or The Bank 63 00:03:37,840 --> 00:03:40,920 Speaker 1: of England is expected to deliver its biggest rate increase 64 00:03:40,920 --> 00:03:43,720 Speaker 1: in thirty three years. We get a preview from Bloomberg's 65 00:03:43,800 --> 00:03:47,040 Speaker 1: U and Pots in London another day. Another jumbo rate, 66 00:03:47,160 --> 00:03:49,920 Speaker 1: like a seventy five basis point increase in the key 67 00:03:50,120 --> 00:03:53,400 Speaker 1: UK industrates is now almost fully priced in by money markets. 68 00:03:53,680 --> 00:03:55,360 Speaker 1: That would take the base rate from two and a 69 00:03:55,440 --> 00:03:58,960 Speaker 1: quarter to three, the highest since two thousand and eight 70 00:03:59,200 --> 00:04:03,240 Speaker 1: and the biggest thing go hike since. Governor Andrew Baby 71 00:04:03,240 --> 00:04:05,720 Speaker 1: will give a press conference shortly after the ouncement, which 72 00:04:05,720 --> 00:04:08,800 Speaker 1: comes at midday. Investors will also be watching out for 73 00:04:08,840 --> 00:04:12,160 Speaker 1: the bank's reports on the economic outlook, likely to confirm 74 00:04:12,240 --> 00:04:14,960 Speaker 1: a recession is now under way. A loss has changed 75 00:04:15,000 --> 00:04:18,000 Speaker 1: since the last forecast at the beginning of August, beefed 76 00:04:18,080 --> 00:04:21,680 Speaker 1: up government support for household energy bills will restrain inflation 77 00:04:21,839 --> 00:04:24,800 Speaker 1: over the winter after April. The government is yet to 78 00:04:24,800 --> 00:04:26,920 Speaker 1: set out a plan. In London, I'm you and pot 79 00:04:26,960 --> 00:04:29,960 Speaker 1: spin Bag Daybreak, are you and Thanks? In Asia, China 80 00:04:30,000 --> 00:04:33,400 Speaker 1: has lockdown the world's largest iPhone factory, and Bloombergy Daybreak 81 00:04:33,400 --> 00:04:36,719 Speaker 1: Asia anchor Brian Curtis has more from Hong Kong, China 82 00:04:36,880 --> 00:04:40,279 Speaker 1: is not playing games with COVID zero. Authorities swooped in 83 00:04:40,320 --> 00:04:42,480 Speaker 1: and put the zone around the Jung Jo fox Can 84 00:04:42,600 --> 00:04:45,880 Speaker 1: plant off limits. It's the last thing that Apple needed, 85 00:04:46,160 --> 00:04:49,279 Speaker 1: or that fox Can wanted, given the upcoming holiday season. 86 00:04:49,560 --> 00:04:53,400 Speaker 1: First a COVID outbreak, then an enforced quarantine, and then 87 00:04:53,440 --> 00:04:56,800 Speaker 1: an exodus of workers. They literally walked twenty miles to 88 00:04:56,880 --> 00:05:00,200 Speaker 1: get home or to a train. Some two hundred and 89 00:05:00,320 --> 00:05:03,440 Speaker 1: people work here. It's a stark reminder of the dangers 90 00:05:03,520 --> 00:05:07,120 Speaker 1: for Apple in a COVID zero mindset. The lockdown runs 91 00:05:07,200 --> 00:05:10,400 Speaker 1: until November nine, but it could go longer. In Hong Kong, 92 00:05:10,400 --> 00:05:13,320 Speaker 1: Brian Curtis, Bloomberg Daybreak, All right, Brian, thank you. In 93 00:05:13,400 --> 00:05:16,440 Speaker 1: corporate news, big job cuts are on the way at Twitter. 94 00:05:16,520 --> 00:05:19,440 Speaker 1: Bloomberg News has learned the new owner, Elon Musk plans 95 00:05:19,480 --> 00:05:23,000 Speaker 1: to eliminate about half the social media company's workforce. That's 96 00:05:23,000 --> 00:05:25,880 Speaker 1: about thirty seven hundred jobs. We get more from Bloomberg, 97 00:05:25,920 --> 00:05:28,400 Speaker 1: said Ludlow in our nine sixty newsroom in San Francisco. 98 00:05:28,720 --> 00:05:32,039 Speaker 1: Sources say that's the plan. The layoff list will be 99 00:05:32,080 --> 00:05:36,120 Speaker 1: confirmed Friday, and those affects it will be informed. We 100 00:05:36,279 --> 00:05:38,919 Speaker 1: we kind of knew this was coming, right. We reported 101 00:05:38,960 --> 00:05:43,000 Speaker 1: over the weekend that managers across product teams have been 102 00:05:43,040 --> 00:05:46,080 Speaker 1: asked to drop a list of candidates that would reduce 103 00:05:46,160 --> 00:05:53,440 Speaker 1: headcount by um you know, and Musque has making his 104 00:05:53,520 --> 00:05:56,800 Speaker 1: mark on this company, Bloomberg said. Bloodlow says Musk also 105 00:05:56,839 --> 00:06:00,120 Speaker 1: intends to reverse the company's existing work from anywhere policy, 106 00:06:00,040 --> 00:06:03,640 Speaker 1: the asking remaining employees to report to offices. Then job 107 00:06:03,680 --> 00:06:06,520 Speaker 1: cuts may also be on the way at Morgan Stanley. 108 00:06:06,600 --> 00:06:09,679 Speaker 1: Nathan Ruter's is reporting the financial firm has started layoffs 109 00:06:09,720 --> 00:06:12,440 Speaker 1: globally in the coming weeks. Several stocks are on the 110 00:06:12,480 --> 00:06:15,400 Speaker 1: move this morning following earnings. Karen, We're watching shares of 111 00:06:15,480 --> 00:06:19,280 Speaker 1: Qualcom this morning. They're down nearly seven percent. Company delivered 112 00:06:19,320 --> 00:06:21,960 Speaker 1: a far weaker forecast than expected. We get the details 113 00:06:22,000 --> 00:06:25,279 Speaker 1: from Bloomberg's Charlie Pellett. Qualcom is the biggest maker of 114 00:06:25,400 --> 00:06:28,960 Speaker 1: smart phone processors, and it says revenue will be nine 115 00:06:29,040 --> 00:06:32,440 Speaker 1: point two to ten billion dollars in the fiscal first quarter. 116 00:06:32,520 --> 00:06:35,920 Speaker 1: Now that compares with an average analysts estimate of twelve 117 00:06:36,120 --> 00:06:39,440 Speaker 1: billion dollars. The outlook suggests that the slumping market for 118 00:06:39,480 --> 00:06:44,159 Speaker 1: consumer devices is eroding even faster than expected. Even before 119 00:06:44,200 --> 00:06:47,200 Speaker 1: the report, the stock was down thirty eight percent this year, 120 00:06:47,440 --> 00:06:51,839 Speaker 1: hurt by concerns that smartphone demand was on shaky ground 121 00:06:52,240 --> 00:06:55,680 Speaker 1: in New York. Charlie Pellett, Bloomberg Daybreak, Great, Charlie, thanks. 122 00:06:55,720 --> 00:06:58,320 Speaker 1: Will Shares of l t C USA or down more 123 00:06:58,400 --> 00:07:02,640 Speaker 1: than this moreing the broadband and video service providers earnings 124 00:07:02,720 --> 00:07:06,400 Speaker 1: missing analysts estimate. Shares a Roku down eighteen percent, the 125 00:07:06,440 --> 00:07:10,040 Speaker 1: maker of set top boxes consumers used to watch streaming services, 126 00:07:10,280 --> 00:07:13,880 Speaker 1: forecast a wider than expected fourth quarter loss. Straight ahead, 127 00:07:13,920 --> 00:07:17,200 Speaker 1: we have your latest local headlines, plus a check of sports, 128 00:07:17,280 --> 00:07:24,240 Speaker 1: and this is Bloomberg. Caren. It's five oh seven on 129 00:07:24,280 --> 00:07:27,760 Speaker 1: Wall Street where fifty five degrees in Central Park's instruction 130 00:07:27,800 --> 00:07:30,320 Speaker 1: going both ways on the New Jersey Turnpike will fill 131 00:07:30,320 --> 00:07:33,000 Speaker 1: you into the details and traffic shortly. First Michael Bars 132 00:07:33,040 --> 00:07:34,880 Speaker 1: here with Lauren What's going on in New York and 133 00:07:34,960 --> 00:07:37,840 Speaker 1: around the world. Good morning, Michael, Good morning Nathan. Authorities 134 00:07:37,840 --> 00:07:40,760 Speaker 1: say they got him. A two day man hunt ended 135 00:07:40,840 --> 00:07:43,400 Speaker 1: in Newark, New Jersey, with the arrest of the suspect 136 00:07:43,400 --> 00:07:47,120 Speaker 1: who police say shot to officers Tuesday. Police arrested thirty 137 00:07:47,200 --> 00:07:50,120 Speaker 1: year old Kendall Howard yesterday at the suspect and the 138 00:07:50,120 --> 00:07:52,600 Speaker 1: shooting of two of their officers while they were serving 139 00:07:52,600 --> 00:07:56,440 Speaker 1: a warrant. Swat storming a Newark apartment building, going door 140 00:07:56,480 --> 00:07:58,600 Speaker 1: to door until police say they found him and brought 141 00:07:58,680 --> 00:08:02,040 Speaker 1: him out Essex count The acting prosecutor, Ted Stephens says 142 00:08:02,080 --> 00:08:05,840 Speaker 1: Howard will face charges. Mr. Howard has been charged with 143 00:08:06,320 --> 00:08:11,600 Speaker 1: two counts of attempted murder of north police officers. Prosecutor 144 00:08:11,680 --> 00:08:15,600 Speaker 1: Ted Stephens says the injured officers are hospitalized in stable condition. 145 00:08:15,960 --> 00:08:19,040 Speaker 1: The convicted shooter in the Parkland, Florida High school massacre 146 00:08:19,120 --> 00:08:23,160 Speaker 1: has been sentenced, Bloomberg said. Baxter reports Nicholas Crew sentenced 147 00:08:23,160 --> 00:08:26,800 Speaker 1: for each of the students seen for the murder in 148 00:08:26,840 --> 00:08:30,720 Speaker 1: the first degree of Peter Way. The court includes a 149 00:08:30,760 --> 00:08:36,160 Speaker 1: mandatory life sentence without the possibility of parole. Judge Elizabeth 150 00:08:36,200 --> 00:08:41,160 Speaker 1: Sharer handing down seventeen life sentences connected to the students involved. 151 00:08:41,480 --> 00:08:47,320 Speaker 1: Those sentences are to be run consecutively, so seventeen lifetimes. 152 00:08:47,400 --> 00:08:51,439 Speaker 1: In total. There were thirty four sentences in San Francisco. 153 00:08:51,480 --> 00:08:54,280 Speaker 1: I'm at Baxter Bloomberg Gay Break. With the midterm elections 154 00:08:54,400 --> 00:08:58,160 Speaker 1: just five days away, President Biden is warning about political violence. 155 00:08:58,440 --> 00:09:00,840 Speaker 1: In a speech last night by and said voters are 156 00:09:00,920 --> 00:09:05,160 Speaker 1: choosing between democracy and extremism and pointed the finger directly 157 00:09:05,200 --> 00:09:09,160 Speaker 1: at former President Trump. American Democrat Center attacked because the 158 00:09:09,240 --> 00:09:12,680 Speaker 1: defeated former president of the United States refused to accept 159 00:09:12,720 --> 00:09:17,199 Speaker 1: the results election. President Biden then linked violence at the 160 00:09:17,240 --> 00:09:20,240 Speaker 1: Capitol on January six to the recent attack on how 161 00:09:20,280 --> 00:09:24,000 Speaker 1: speaker Nancy Pelosi's husband. Former President Trump has settled a 162 00:09:24,040 --> 00:09:26,800 Speaker 1: lawsuit filed by a group of protesters who say they 163 00:09:26,800 --> 00:09:30,920 Speaker 1: were roughed up by the Republicans private security guards during 164 00:09:30,960 --> 00:09:35,360 Speaker 1: his presidential campaign. The two sides settled as a jury 165 00:09:35,559 --> 00:09:37,760 Speaker 1: was being selected in the New York courtroom for a 166 00:09:37,840 --> 00:09:40,800 Speaker 1: civil trial. The tales of the settlement were not divulged. 167 00:09:41,080 --> 00:09:44,880 Speaker 1: The lawsuit alleges Trump's bodyguards attacked him outside as Manhattan 168 00:09:44,920 --> 00:09:50,720 Speaker 1: skyscraper on September of as they protested negative comments Trump 169 00:09:50,800 --> 00:09:54,760 Speaker 1: made about Mexico and Mexican immigrants. Global News twenty four 170 00:09:54,760 --> 00:09:58,120 Speaker 1: hours a day on air and on Bloomberg Quicktake, powered 171 00:09:58,160 --> 00:10:01,000 Speaker 1: by more than twenty seven under and listed analysts more 172 00:10:01,000 --> 00:10:05,040 Speaker 1: than a D twenty countries. Michael Barr, this is Bloomberg. Nathan. Okay, Michael, 173 00:10:05,040 --> 00:10:11,520 Speaker 1: thank you. Almost five ten on Wall Street time for 174 00:10:11,520 --> 00:10:13,960 Speaker 1: the Bloomberg Sports something brought to you by Tri State Autie. 175 00:10:13,960 --> 00:10:16,520 Speaker 1: Good morning, John Stanshown. Alright, good morning, Nathan, Astros and 176 00:10:16,559 --> 00:10:18,640 Speaker 1: Phillies Game four the World Series and night after the 177 00:10:18,679 --> 00:10:21,640 Speaker 1: Phillies one with a shutout. The Astros at a shutout, 178 00:10:21,760 --> 00:10:24,040 Speaker 1: that's not all they had. And the pitch from Pressley, 179 00:10:24,040 --> 00:10:26,319 Speaker 1: a swing of the groundball to third. Bregman has it, 180 00:10:26,720 --> 00:10:29,800 Speaker 1: the throw to first and that'll do it. The Astros 181 00:10:29,840 --> 00:10:33,040 Speaker 1: even up the World Series with a five to nothing win. 182 00:10:33,120 --> 00:10:37,440 Speaker 1: Did I and four of their pictures combined to no 183 00:10:37,720 --> 00:10:43,280 Speaker 1: hit the Philadelphia Phillies As Pressley finishes off what Christian 184 00:10:43,400 --> 00:10:46,200 Speaker 1: Javier started being at the call. Houston scored all the 185 00:10:46,240 --> 00:10:48,560 Speaker 1: game's five runs on five hits in the fifth in 186 00:10:48,800 --> 00:10:51,679 Speaker 1: the Phils could not touch Javier, who's on an amazing role. 187 00:10:51,679 --> 00:10:53,959 Speaker 1: He allowed only one hit, and his start versus the 188 00:10:54,040 --> 00:10:56,679 Speaker 1: Yankees and the a LCS, and his last six starts 189 00:10:57,000 --> 00:11:00,120 Speaker 1: covering thirty four innings, Javier has not allowed of an 190 00:11:00,200 --> 00:11:02,880 Speaker 1: He's never allowed more than two hits. Only previous World 191 00:11:02,880 --> 00:11:06,800 Speaker 1: Series no hitter Don Larson's perfect game in nineteen fifty six. 192 00:11:07,040 --> 00:11:10,120 Speaker 1: Pivotal Game five. Tonight, Euston starts Justin Burland, a future 193 00:11:10,160 --> 00:11:12,319 Speaker 1: Hall of Famer, still seeking his first World Series win. 194 00:11:12,400 --> 00:11:15,839 Speaker 1: He's owing six. The x met no Noah synder Guard 195 00:11:15,880 --> 00:11:18,440 Speaker 1: starts for the field. Disastrous game for the Knicks at 196 00:11:18,440 --> 00:11:20,400 Speaker 1: the Garden. They led Atlanta by twenty three and then 197 00:11:20,400 --> 00:11:23,800 Speaker 1: trailed by nineteen, so they got outscored seventy nine to 198 00:11:23,960 --> 00:11:26,840 Speaker 1: thirty seven. The Hawks won one twelve ninety nine, led 199 00:11:26,880 --> 00:11:29,400 Speaker 1: by all season pick up Damant J. Murray scored a 200 00:11:29,440 --> 00:11:32,200 Speaker 1: career high thirty six points. Nicks third straight lost their 201 00:11:32,240 --> 00:11:34,720 Speaker 1: first loss at home. The Nets and Kyrie Irving jointly 202 00:11:34,760 --> 00:11:38,040 Speaker 1: announced both will donate five hundred thousand dollars to anti 203 00:11:38,160 --> 00:11:41,920 Speaker 1: hate causes. Irving last Saturday doubled down on that posting 204 00:11:41,960 --> 00:11:44,079 Speaker 1: of an anti Semitic video he has navalist a statement 205 00:11:44,080 --> 00:11:47,559 Speaker 1: that said, he takes responsibility meant no harm, opposes all 206 00:11:47,600 --> 00:11:50,920 Speaker 1: forms of hatred. John stashi Warre Bloomberg Sports, Nathan, thank you, 207 00:11:51,000 --> 00:11:53,720 Speaker 1: john S and P. Futures down down four points, Stown 208 00:11:53,760 --> 00:11:57,199 Speaker 1: futures down sixteen. NAT futures down twenty three after the 209 00:11:57,280 --> 00:12:01,520 Speaker 1: sell off yesterday following the FED decision. Former Philadelphia Fed 210 00:12:01,559 --> 00:12:08,360 Speaker 1: President Charles Plaster with us next. This is Bloomberg. Bloomberg 211 00:12:08,400 --> 00:12:10,320 Speaker 1: Sports is brought to you by Audie. Don't let someone 212 00:12:10,360 --> 00:12:12,600 Speaker 1: else drive off in the Audi model you've always wanted. 213 00:12:12,679 --> 00:12:14,960 Speaker 1: Visit your local price state Audie dealer to get behind 214 00:12:14,960 --> 00:12:17,600 Speaker 1: the wheel of yours today, or visit Autie Offers dot 215 00:12:17,640 --> 00:12:24,560 Speaker 1: com for more information, markets, headlines and breaking news twenty 216 00:12:24,559 --> 00:12:27,800 Speaker 1: four hours a day at Bloomberg dot com and Bloomberg Business, 217 00:12:28,040 --> 00:12:37,360 Speaker 1: and at Bloomberg Quicktape. This is a Bloomberg Business Flash 218 00:12:37,640 --> 00:12:40,600 Speaker 1: and I'm Karen Moscow Future is following this morning. SMP 219 00:12:40,800 --> 00:12:44,120 Speaker 1: futures down about eight points down, futures down forties seven, 220 00:12:44,200 --> 00:12:46,960 Speaker 1: NASDACK futures down thirty four and the ten year treasury 221 00:12:47,000 --> 00:12:50,480 Speaker 1: down sixteen thirty seconds held four point one six percent. 222 00:12:50,600 --> 00:12:53,040 Speaker 1: They yield on the two year at four point six 223 00:12:53,040 --> 00:12:56,160 Speaker 1: eight percent. And that's a Bloomberg Business Flash. Now here's 224 00:12:56,200 --> 00:12:59,079 Speaker 1: Michael Barr with more on what's going on around the world. Michael, 225 00:12:59,080 --> 00:13:02,360 Speaker 1: good morning, Good morning, Karen. President Joe Biden asked voters 226 00:13:02,360 --> 00:13:05,160 Speaker 1: to consider the future of democracy when they vote in 227 00:13:05,240 --> 00:13:08,360 Speaker 1: next week's mid term elections. During last night's speech by 228 00:13:08,480 --> 00:13:12,720 Speaker 1: nerge voters to reject Donald Trump's big lie. Christian Javier 229 00:13:12,880 --> 00:13:16,200 Speaker 1: and the Astro's bullpen combined for adjust the second no 230 00:13:16,320 --> 00:13:19,240 Speaker 1: hitter in the Rule series history. Houston won Game four 231 00:13:19,280 --> 00:13:21,800 Speaker 1: against the Phillies five zip to even the series two games. 232 00:13:21,800 --> 00:13:25,199 Speaker 1: Apiece Global News twenty four hours a day on air 233 00:13:25,400 --> 00:13:29,240 Speaker 1: and on Bloomberg Quicktake, powered by more than twenty seven 234 00:13:29,320 --> 00:13:32,760 Speaker 1: hundred journalists and analysts in more than one hundred twenty countries. 235 00:13:32,960 --> 00:13:36,320 Speaker 1: I'm Michael Barr, and this is Bloomberg. Nathan, Thank you, Michael. 236 00:13:36,320 --> 00:13:38,800 Speaker 1: It is eighteen on Wall Street Life from the Bloomberg 237 00:13:38,800 --> 00:13:41,880 Speaker 1: Interactive Brokers Studios. This is Bloomberg Daybreak in morning. I'm 238 00:13:41,960 --> 00:13:44,840 Speaker 1: Nathan Haker. It's a new phase in the Federal reserves 239 00:13:44,840 --> 00:13:48,520 Speaker 1: fight against inflation. After raising interest rates another seventy five 240 00:13:48,559 --> 00:13:52,080 Speaker 1: basis points again, FED chair j Pale said rates will 241 00:13:52,200 --> 00:13:54,840 Speaker 1: have to go higher than earlier projected, though he said 242 00:13:54,840 --> 00:13:58,280 Speaker 1: the path to get there may mean smaller hikes. For 243 00:13:58,360 --> 00:14:01,480 Speaker 1: more on the central banks policy, The Outlook, Bloomberg's Kathleen 244 00:14:01,520 --> 00:14:05,200 Speaker 1: Hayes and Heidi Stroud Watts spoke with former Philadelphia Federal 245 00:14:05,280 --> 00:14:09,640 Speaker 1: Reserve Bank President Charles Plosser to use this a hawkish fan, 246 00:14:09,920 --> 00:14:11,960 Speaker 1: Is it a debblish fan. Is it a FED that 247 00:14:12,080 --> 00:14:16,199 Speaker 1: is on the right track? Well, it's not a hardish fan. 248 00:14:16,320 --> 00:14:19,240 Speaker 1: I mean that they put themselves in a position where 249 00:14:19,280 --> 00:14:22,040 Speaker 1: they had to do this. This is chinaba, a problem 250 00:14:22,080 --> 00:14:26,320 Speaker 1: of their own nation. Uh. I thought Power today spoke 251 00:14:26,480 --> 00:14:30,320 Speaker 1: very eloquently about inflation, about the dangers of inflation, why 252 00:14:30,400 --> 00:14:33,120 Speaker 1: the FED needed to act. I don't know where that 253 00:14:33,160 --> 00:14:37,320 Speaker 1: power was twelve or eighteen months ago when um he 254 00:14:37,400 --> 00:14:39,520 Speaker 1: said they didn't have to worry about inflation for at 255 00:14:39,600 --> 00:14:41,720 Speaker 1: least two or three years, that the f should keep 256 00:14:41,760 --> 00:14:46,000 Speaker 1: at zero populated zero and not worried about inflation. Um. 257 00:14:46,040 --> 00:14:48,840 Speaker 1: I hope he's more accurate now than he was then. 258 00:14:49,880 --> 00:14:53,640 Speaker 1: Uh So, I think they did exactly where everybody expeking 259 00:14:53,800 --> 00:14:56,560 Speaker 1: to do. I think the question is is this enough? 260 00:14:57,640 --> 00:14:59,640 Speaker 1: And you took the worst part in my mouth is 261 00:14:59,640 --> 00:15:02,680 Speaker 1: it an willing to go above the neutral rate? He says, 262 00:15:02,720 --> 00:15:06,520 Speaker 1: it's an estimate somewhere, you know, two to three percent. Uh, 263 00:15:06,720 --> 00:15:08,880 Speaker 1: is that going to be high enough even if they 264 00:15:09,120 --> 00:15:13,160 Speaker 1: do go above neutral? Well, I don't. I don't, uh, 265 00:15:14,080 --> 00:15:17,200 Speaker 1: people being different things by by neutral, but the definitely 266 00:15:17,240 --> 00:15:19,680 Speaker 1: between two and three percent. I don't think it's high 267 00:15:19,800 --> 00:15:23,280 Speaker 1: enough if if inflation is still sitting at four or 268 00:15:23,280 --> 00:15:25,760 Speaker 1: five percent, even if it comes down from where it 269 00:15:25,800 --> 00:15:29,000 Speaker 1: is now, which I expected to do, it's not going 270 00:15:29,040 --> 00:15:30,920 Speaker 1: to be a two percent by the end of the year. 271 00:15:31,480 --> 00:15:33,120 Speaker 1: So they're gonna be looking at a four or five 272 00:15:33,160 --> 00:15:35,520 Speaker 1: percent inflation right at the end of the year. That 273 00:15:35,640 --> 00:15:38,720 Speaker 1: means that real interest rate or still deep in native 274 00:15:38,760 --> 00:15:40,560 Speaker 1: even if they get to two or three percent, but 275 00:15:40,640 --> 00:15:43,640 Speaker 1: the native the real rate will still be minus two percent. 276 00:15:44,520 --> 00:15:49,080 Speaker 1: That's not that's very accommodated still and not very restricted. 277 00:15:49,680 --> 00:15:53,120 Speaker 1: So I don't think that's enough. It will be enough 278 00:15:53,160 --> 00:15:56,640 Speaker 1: at the end of the day. Uh, maybe if inflation 279 00:15:56,680 --> 00:15:59,880 Speaker 1: comes down, maybe they're going to reprieve. We don't know that, 280 00:16:00,080 --> 00:16:03,680 Speaker 1: but I think it's it's it's it's misleading I believe 281 00:16:03,760 --> 00:16:06,760 Speaker 1: to sort of talking about the mutual rate as if 282 00:16:06,800 --> 00:16:10,400 Speaker 1: that's enough to bring inflation down by any traditional standards, 283 00:16:10,400 --> 00:16:13,560 Speaker 1: it won't be without. Actually, in fact, seventy five basis 284 00:16:13,600 --> 00:16:17,640 Speaker 1: points hikes are still feasible. I think they are, and 285 00:16:17,680 --> 00:16:20,160 Speaker 1: I think I think that the Fed, I think power 286 00:16:20,360 --> 00:16:25,960 Speaker 1: was a little bit um um playing the markets are 287 00:16:26,040 --> 00:16:29,840 Speaker 1: trying to appease the markets with this. I don't think 288 00:16:29,840 --> 00:16:34,840 Speaker 1: you should have taken seventy five basis points off the table, 289 00:16:35,200 --> 00:16:37,440 Speaker 1: as many people have interpreted. I don't. I think they 290 00:16:38,080 --> 00:16:41,400 Speaker 1: need to be still on the table. Uh and uh, 291 00:16:41,960 --> 00:16:44,400 Speaker 1: and that the FED all to have that option in 292 00:16:44,840 --> 00:16:49,080 Speaker 1: I think there's a right. So if that's the case, 293 00:16:49,120 --> 00:16:51,320 Speaker 1: have they dune themselves a bigger hole in terms of 294 00:16:51,360 --> 00:16:55,680 Speaker 1: market expectations? Well, they may have. I mean they doing 295 00:16:55,720 --> 00:16:58,360 Speaker 1: themselves a big hole two years ago when they adopted 296 00:16:58,360 --> 00:17:01,040 Speaker 1: their new strategy, just said inflation was not going to 297 00:17:01,120 --> 00:17:03,320 Speaker 1: be a problem. They can keep ranking zero for two 298 00:17:03,440 --> 00:17:06,880 Speaker 1: or three years. Um. They dug a hole for themselves there. 299 00:17:06,880 --> 00:17:10,080 Speaker 1: And you know, frankly, if they had done what many people, 300 00:17:10,320 --> 00:17:12,399 Speaker 1: myself and through the suggest that they do is to 301 00:17:12,440 --> 00:17:16,600 Speaker 1: begin tapering that purchases and getting on with the rate 302 00:17:16,720 --> 00:17:20,080 Speaker 1: increases a year ago, um, they wouldn't be in this 303 00:17:20,119 --> 00:17:22,800 Speaker 1: position of having in race rate seven five paces point 304 00:17:22,920 --> 00:17:26,639 Speaker 1: or or disrupt markets with rapid interests. It reminds me 305 00:17:26,720 --> 00:17:29,560 Speaker 1: of the old what we used to call co stop 306 00:17:29,640 --> 00:17:33,159 Speaker 1: policies of the family step on the accelerated to HOUSTI 307 00:17:33,200 --> 00:17:36,280 Speaker 1: economy and Jewish employment only have to only having to 308 00:17:36,280 --> 00:17:39,959 Speaker 1: slam on the brakes to stop inflation. That's the policy 309 00:17:40,000 --> 00:17:42,439 Speaker 1: they seem you to be practicing, Charlie. At this point, 310 00:17:42,720 --> 00:17:46,200 Speaker 1: is it possible for the fetter reserve to UH slow 311 00:17:46,240 --> 00:17:49,360 Speaker 1: the economy? Powell talked about the hot labor market possibly 312 00:17:49,400 --> 00:17:53,119 Speaker 1: cooling off. He was getting inflation downds challenging. But there's 313 00:17:53,440 --> 00:17:57,240 Speaker 1: a chance of a softer or softish landing. Can the 314 00:17:57,240 --> 00:18:00,000 Speaker 1: fet achieved that? Or is a recession pretty much inevitable 315 00:18:00,040 --> 00:18:04,800 Speaker 1: this point? Who knows? I mean the Fed? It could 316 00:18:05,040 --> 00:18:09,480 Speaker 1: The Fed should very likely UH and achieve a sort 317 00:18:09,520 --> 00:18:14,040 Speaker 1: of somewhat soft landing. I don't know the answer to that, um, 318 00:18:14,080 --> 00:18:16,840 Speaker 1: but it's a very fine needle and it will take 319 00:18:18,320 --> 00:18:21,720 Speaker 1: a lot of luck, I think, not just a policy decision, 320 00:18:21,760 --> 00:18:25,040 Speaker 1: but luck in order to achieve that. At this point. 321 00:18:25,160 --> 00:18:28,080 Speaker 1: Is there there's just no record of the Fed raising 322 00:18:28,200 --> 00:18:32,680 Speaker 1: rates to minus two percent in rial firms and stopping insulation. 323 00:18:33,520 --> 00:18:37,439 Speaker 1: So the balance run off Charlie, that's good. Yeah, if 324 00:18:37,480 --> 00:18:40,320 Speaker 1: Balanci run off is going to get up about a month, 325 00:18:40,520 --> 00:18:44,960 Speaker 1: what is its sixty in treasury, sixty billion in in nbs, 326 00:18:45,000 --> 00:18:47,600 Speaker 1: it's gonna take about three months to get there. Um 327 00:18:47,760 --> 00:18:50,040 Speaker 1: is this going to make a difference in how much 328 00:18:50,040 --> 00:18:52,720 Speaker 1: they need to raise race? I know Jim Buller from St. 329 00:18:52,760 --> 00:18:55,639 Speaker 1: Louis FED and others have sort of talked about this. 330 00:18:56,160 --> 00:18:58,399 Speaker 1: What's your sense of how that's going to work? And 331 00:18:58,440 --> 00:19:03,639 Speaker 1: if if aggressive balance sheet runoff could augment the amount 332 00:19:03,640 --> 00:19:07,400 Speaker 1: of rate hives they seem ready to do right now. Well, 333 00:19:07,760 --> 00:19:11,119 Speaker 1: I think that's very duteous to day Shi. He didn't know. 334 00:19:12,640 --> 00:19:14,680 Speaker 1: They don't know what the effect of the balance sheet 335 00:19:15,440 --> 00:19:20,400 Speaker 1: from the great I hope it works, but there there's 336 00:19:20,440 --> 00:19:23,320 Speaker 1: no way to be sure. And that was former Philadelphia 337 00:19:23,359 --> 00:19:26,879 Speaker 1: FED President Charles Plaster speaking with Bloomberg's Kathleen Hayes and 338 00:19:27,000 --> 00:19:29,399 Speaker 1: Heidi Stroud wats. You can catch the full interview on 339 00:19:29,440 --> 00:19:32,440 Speaker 1: Bloomberg dot com and on the Bloomberg terminals. Stay with 340 00:19:32,520 --> 00:19:35,000 Speaker 1: us here on Bloomberg Daybreak. We're gonna continue getting reaction 341 00:19:35,040 --> 00:19:38,000 Speaker 1: to the FED decision. As we await the Bank of England. 342 00:19:38,280 --> 00:19:41,560 Speaker 1: Also big job cuts maybe coming to Twitter. We got 343 00:19:41,600 --> 00:19:44,480 Speaker 1: top stories of the morning straight ahead here on Bloomberg Daybreak. 344 00:19:44,640 --> 00:19:47,280 Speaker 1: Looking ahead to the market, open futures are pointing to 345 00:19:47,480 --> 00:19:51,399 Speaker 1: more losses after the FED fueled route yesterday. SMP futures 346 00:19:51,400 --> 00:19:54,840 Speaker 1: are down four points down, features down nineteen. Nastack future 347 00:19:54,880 --> 00:19:58,199 Speaker 1: is lower by twenty two points. Tenure treasuries down seventeen 348 00:19:58,320 --> 00:20:01,119 Speaker 1: thirty seconds for a yield of four point one seven. 349 00:20:02,359 --> 00:20:09,120 Speaker 1: This is Bloomberg Bloomberg eleven three oh weather sunny, mid 350 00:20:09,200 --> 00:20:11,879 Speaker 1: sixties today, will be in the upper sixties tomorrow, with 351 00:20:11,920 --> 00:20:15,800 Speaker 1: more sunshine low seventies for the weekend by Sunday, chance 352 00:20:15,880 --> 00:20:18,600 Speaker 1: for a shower. Right now fifty four in Central Park, 353 00:20:22,280 --> 00:20:26,840 Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York. 354 00:20:26,920 --> 00:20:30,399 Speaker 1: Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety 355 00:20:30,720 --> 00:20:34,240 Speaker 1: one to Boston, Bloomberg one six one to San Francisco, 356 00:20:34,320 --> 00:20:37,520 Speaker 1: Bloomberg nine sixty to the country, Sirius XM to the 357 00:20:37,600 --> 00:20:40,560 Speaker 1: one nine team, and around the globe the Bloomberg Business 358 00:20:40,560 --> 00:20:44,600 Speaker 1: app and Bloomberg Radio dot Com. This is Bloomberg Daybreak 359 00:20:50,480 --> 00:20:52,760 Speaker 1: and It's five thirty on Wall Street. Good morning. I'm 360 00:20:52,800 --> 00:20:55,840 Speaker 1: Karen Moscow. I'm Nathan Hagar Bloomberg. Daybreak is brought to 361 00:20:55,840 --> 00:20:59,000 Speaker 1: you by se I. Imagine your asset management firms operational 362 00:20:59,040 --> 00:21:01,720 Speaker 1: infrastructure as it can petitive advantage. Let s e I 363 00:21:01,840 --> 00:21:04,280 Speaker 1: show you how at se I C dot com slash 364 00:21:04,320 --> 00:21:07,000 Speaker 1: I m S and we're just about four hours away 365 00:21:07,000 --> 00:21:08,919 Speaker 1: from the open of US trading. Let's get you up 366 00:21:08,920 --> 00:21:10,800 Speaker 1: to data the news you need to know at this shower. 367 00:21:11,000 --> 00:21:14,399 Speaker 1: US futures are lower after a hawkish FED led to 368 00:21:14,480 --> 00:21:17,600 Speaker 1: a Wall Street to sell off yesterday. As expected, the 369 00:21:17,680 --> 00:21:20,879 Speaker 1: Central Bank raised interest rates seventy five basis points, but 370 00:21:20,960 --> 00:21:24,040 Speaker 1: stocks sold off when Fed Chair J Powell made clear 371 00:21:24,160 --> 00:21:27,520 Speaker 1: monetary tightening still has a ways to go. We still 372 00:21:27,560 --> 00:21:30,480 Speaker 1: have some ways to go, and incoming data since our 373 00:21:30,560 --> 00:21:33,800 Speaker 1: last meeting suggests that the ultimate level of interest rates 374 00:21:33,840 --> 00:21:36,960 Speaker 1: will be higher than previously expected, and the move by J. 375 00:21:37,119 --> 00:21:39,400 Speaker 1: Powell and the Fed lifts the benchmark to a three 376 00:21:39,440 --> 00:21:42,879 Speaker 1: point seven five percent to four percent range from nearly zero. 377 00:21:43,040 --> 00:21:46,119 Speaker 1: In March, reaction poured into the Fed's aggressive tonecare and 378 00:21:46,200 --> 00:21:49,840 Speaker 1: eye capital Chief investment strategist Anastagia amar Rosa says, traders 379 00:21:49,840 --> 00:21:53,320 Speaker 1: are left with an uncertain path ahead. Initially, the markets 380 00:21:53,320 --> 00:21:55,520 Speaker 1: got what they wanted, which is it seems like we 381 00:21:55,640 --> 00:21:58,080 Speaker 1: are going to slow the path of rating increases. But 382 00:21:58,119 --> 00:22:00,080 Speaker 1: then in the same breath FT share power man and 383 00:22:00,280 --> 00:22:03,080 Speaker 1: that we have ways to go before we actually can pause, 384 00:22:03,119 --> 00:22:05,840 Speaker 1: and NATS was really unsettled the markets. The hope going 385 00:22:05,880 --> 00:22:08,000 Speaker 1: into is that we can maybe start to see the 386 00:22:08,040 --> 00:22:10,480 Speaker 1: beginning of the end of the tightening cycle. We cannot 387 00:22:10,520 --> 00:22:13,560 Speaker 1: draw that conclusion right now. Anestaesia Marosa with Eye Capital 388 00:22:13,600 --> 00:22:16,359 Speaker 1: says economic indicators show the chances of a recession or 389 00:22:16,400 --> 00:22:20,960 Speaker 1: around fIF well. Former Philadelphia Fed President Charles plus Sir 390 00:22:21,119 --> 00:22:24,119 Speaker 1: says the probability of the Fed achieving a soft landing 391 00:22:24,160 --> 00:22:28,760 Speaker 1: maybe slimmer, very likely, and achieve a sort of somewhat 392 00:22:28,800 --> 00:22:31,320 Speaker 1: soft landing, it's a very fine, you know, and it 393 00:22:31,320 --> 00:22:34,640 Speaker 1: will take a lot of luck, not just a policy descinusion, 394 00:22:34,720 --> 00:22:38,480 Speaker 1: but luck to achieve that. At this point. Former Philadelphia 395 00:22:38,480 --> 00:22:41,440 Speaker 1: Fed President Charles plus Or says J. Powell should still 396 00:22:41,440 --> 00:22:44,520 Speaker 1: consider another seventy five basis point Hi get next month's 397 00:22:44,640 --> 00:22:47,439 Speaker 1: f O m C meeting. Monetary policy is also in 398 00:22:47,480 --> 00:22:49,920 Speaker 1: focus in Europe this morning. Karen the Bank of England 399 00:22:50,000 --> 00:22:52,840 Speaker 1: is expected to deliver its biggest rate increase in thirty 400 00:22:52,880 --> 00:22:56,560 Speaker 1: three years. Oliver in Asia, Nathan China locked down the 401 00:22:56,560 --> 00:23:00,919 Speaker 1: world's largest iPhone factory, and the Young Zoo areat Covid Spread. 402 00:23:00,960 --> 00:23:03,560 Speaker 1: The lockdown is expected to last until next week. And 403 00:23:03,680 --> 00:23:06,200 Speaker 1: other corporate news. This morning, Bloomberg News has learned Elon 404 00:23:06,280 --> 00:23:09,399 Speaker 1: Musk plans to eliminate about half of Twitter's workforce. It's 405 00:23:09,440 --> 00:23:13,040 Speaker 1: about thirty seven hundred jobs, and job cuts may also 406 00:23:13,080 --> 00:23:15,560 Speaker 1: be on the way. At Morgan Stanley, Reuter's is reporting 407 00:23:15,560 --> 00:23:19,399 Speaker 1: the financial firmost started layoffs globally in the coming weeks. 408 00:23:19,560 --> 00:23:22,760 Speaker 1: Futures this morning lower SMP future is down three points 409 00:23:22,760 --> 00:23:26,240 Speaker 1: and down. Futures down fourteen, NASDACK futures down sixteen, ten 410 00:23:26,320 --> 00:23:29,080 Speaker 1: year Treasury down seventeen thirty seconds. He had four point 411 00:23:29,119 --> 00:23:32,480 Speaker 1: one seven percent straight. I had your latest local headlines, 412 00:23:32,520 --> 00:23:38,840 Speaker 1: plus a check a sports. This is Bloomberg. Thanks Karen. 413 00:23:39,119 --> 00:23:41,400 Speaker 1: Thirty three on Wall Street, fifty three degrees in Central 414 00:23:41,400 --> 00:23:43,639 Speaker 1: Park slow on the westbound l I E. This morning, 415 00:23:43,680 --> 00:23:45,760 Speaker 1: Michael Barr has more on what's going on in New 416 00:23:45,840 --> 00:23:48,480 Speaker 1: York and around the world. Michael, thank you very much. Nathan. 417 00:23:48,480 --> 00:23:50,959 Speaker 1: The man who had already said wounded two Newark police 418 00:23:51,000 --> 00:23:54,600 Speaker 1: officers as they attempted to question him about the previous shooting, 419 00:23:54,720 --> 00:23:58,240 Speaker 1: was taken into custody yesterday. Kendall Howard, who's thirty, is 420 00:23:58,359 --> 00:24:01,960 Speaker 1: charged with the attempted murder the two officers. State Attorney 421 00:24:02,000 --> 00:24:05,280 Speaker 1: General Matt Platkin provided an update on the officers shot. 422 00:24:05,720 --> 00:24:09,160 Speaker 1: I had the opportunity to visit with them last night. 423 00:24:10,000 --> 00:24:12,920 Speaker 1: Thank god, they are recovering and will recover a g. 424 00:24:13,080 --> 00:24:15,480 Speaker 1: Plantkin and authorities say one officer was shot in the 425 00:24:15,560 --> 00:24:17,919 Speaker 1: leg and the other was shot in the neck. Tuesday, 426 00:24:17,920 --> 00:24:21,439 Speaker 1: with just days to go before major midterm elections, President 427 00:24:21,520 --> 00:24:25,680 Speaker 1: Joe Biden is imploring voters to save American democracy. Biden 428 00:24:25,720 --> 00:24:29,520 Speaker 1: brought up ultra Maga Republicans, a reference to Donald Trump's 429 00:24:29,760 --> 00:24:34,480 Speaker 1: make America Great against slogan, and mounting concerns over political violence. 430 00:24:34,800 --> 00:24:39,439 Speaker 1: I believe the voices excusing are calling for violence and 431 00:24:39,480 --> 00:24:45,160 Speaker 1: intimidation our distinct minority in America. But they're loud and 432 00:24:45,200 --> 00:24:48,800 Speaker 1: they are determined. Last night's speech came a few days 433 00:24:48,840 --> 00:24:51,800 Speaker 1: after a man seeking the kidnap house speaker Nancy Pelosi 434 00:24:51,840 --> 00:24:55,840 Speaker 1: severely injured her husband Paul Pelosi in their San Francisco home. 435 00:24:56,240 --> 00:24:59,960 Speaker 1: North Korea has fired at least three missiles that forced 436 00:25:00,000 --> 00:25:05,120 Speaker 1: the Japanese government to issue evacuation alerts and temporarily halt trains. 437 00:25:05,560 --> 00:25:08,200 Speaker 1: Today's launches were the latest in a series of North 438 00:25:08,280 --> 00:25:12,840 Speaker 1: Korean weapons tests in recent months. Get your lottery tickets out. 439 00:25:13,359 --> 00:25:17,679 Speaker 1: It's time to play America's favorite jackpot game. This is 440 00:25:17,720 --> 00:25:20,439 Speaker 1: power Ball. The bad news is you didn't win the 441 00:25:20,440 --> 00:25:22,640 Speaker 1: big one, But the good news is no one else 442 00:25:22,680 --> 00:25:26,440 Speaker 1: did either. Nobody hit the magic life changing numbers. But 443 00:25:26,560 --> 00:25:30,800 Speaker 1: when the one point to billion dollar Powerball jackpot that 444 00:25:30,880 --> 00:25:34,040 Speaker 1: means the jackpot for the next Powerball drawing is estimated 445 00:25:34,040 --> 00:25:38,879 Speaker 1: to be one point five billion dollars on Saturday, it 446 00:25:39,080 --> 00:25:42,120 Speaker 1: is crazy. Nobody's wanted yet Mike has back in Longust 447 00:25:42,280 --> 00:25:44,119 Speaker 1: last time. And by the way, the numbers. If you 448 00:25:44,119 --> 00:25:48,000 Speaker 1: don't believe me with you eleven, five and sixty with 449 00:25:48,040 --> 00:25:52,359 Speaker 1: a powerball three told you you didn't have Global news 450 00:25:52,400 --> 00:25:54,840 Speaker 1: twenty four hours a day on air and on Bloomberg 451 00:25:54,920 --> 00:25:57,359 Speaker 1: Quick Take power by more than twenty seven hundred journalist 452 00:25:57,359 --> 00:25:59,639 Speaker 1: analysts more than a hundred twenty countries. I'm Michael Barr. 453 00:26:00,119 --> 00:26:03,720 Speaker 1: This is the broke. Michael Barb back. Okay, Michael, thank 454 00:26:03,760 --> 00:26:11,200 Speaker 1: you on Wall Street time for the Bloomberg Sports that 455 00:26:11,280 --> 00:26:13,200 Speaker 1: they brought you by Tri stayed out. He here's John 456 00:26:13,240 --> 00:26:15,800 Speaker 1: stash Our act to day. That a World Series no 457 00:26:15,960 --> 00:26:19,040 Speaker 1: hittor and it only happened once before Don Larson's perfect 458 00:26:19,040 --> 00:26:22,359 Speaker 1: game against the Brooklyn Dodgers ninety six and Yankee Stadium 459 00:26:22,400 --> 00:26:25,159 Speaker 1: pitchers don't throw complete games anymore, so it was a 460 00:26:25,200 --> 00:26:28,960 Speaker 1: combined though hitter. It started with the Astros Christian Javier, 461 00:26:29,080 --> 00:26:32,080 Speaker 1: it ended with Ryan Fresley, just like the combined no 462 00:26:32,240 --> 00:26:35,800 Speaker 1: hit of the Astros ad at Yankee Stadium back in June. 463 00:26:35,920 --> 00:26:38,679 Speaker 1: Astro's blank The Phillies five are nothing. The World Series 464 00:26:38,760 --> 00:26:41,560 Speaker 1: is tied at two. Heading the game five tonight, the 465 00:26:41,600 --> 00:26:45,800 Speaker 1: Houston manager Dusty Bacon that they have a great offensive 466 00:26:45,800 --> 00:26:47,440 Speaker 1: club over there, and they've got a lot of energy 467 00:26:47,480 --> 00:26:53,359 Speaker 1: in this ballpark, and uh so it's so it's a 468 00:26:53,440 --> 00:26:55,959 Speaker 1: strange series. I mean, they hit five home runs yesterday 469 00:26:56,040 --> 00:26:59,680 Speaker 1: and the no hits today. I mean, this is a 470 00:26:59,800 --> 00:27:04,359 Speaker 1: day league game and the only other postseason no hitter 471 00:27:04,400 --> 00:27:08,119 Speaker 1: was at that stadium in Philly by Roy Halliday against 472 00:27:08,119 --> 00:27:11,320 Speaker 1: the Reds, who were managed then by Baker. At the Garden, 473 00:27:11,400 --> 00:27:13,639 Speaker 1: Nicks were rolling led the Hawks by twenty three, but 474 00:27:13,720 --> 00:27:16,760 Speaker 1: got outscored in the third quarter thirty two to Tanley 475 00:27:16,760 --> 00:27:21,320 Speaker 1: had more turnovers than points. Atlanta one led by Demonte 476 00:27:21,440 --> 00:27:24,280 Speaker 1: Murray's career high thirty six points. He had nine assists, 477 00:27:24,320 --> 00:27:27,040 Speaker 1: six steals. Then Nets and Carrie Irving will both donate 478 00:27:27,080 --> 00:27:30,560 Speaker 1: five hundred thousand dollars to anti hate causes. They released 479 00:27:30,560 --> 00:27:33,800 Speaker 1: a statement with the Anti Defamation League and with Irving 480 00:27:33,880 --> 00:27:36,320 Speaker 1: said he's learning and is willing to listen. Last week, 481 00:27:36,359 --> 00:27:39,080 Speaker 1: he posted a link to an anti semitic video. Is 482 00:27:39,200 --> 00:27:42,719 Speaker 1: Dan Snyder going to sell the Washington Commanders? Their fans 483 00:27:42,720 --> 00:27:44,760 Speaker 1: are hoping and that's the case. He's hired Bank of 484 00:27:44,800 --> 00:27:48,320 Speaker 1: America to help Cook consider all options. John Stash, they 485 00:27:48,320 --> 00:27:51,840 Speaker 1: were Bloomberg Sports All right, John, thank you seven on 486 00:27:51,920 --> 00:27:54,760 Speaker 1: Wall Street time for the Tri State Business Report with Bloomberg. 487 00:27:54,800 --> 00:27:58,240 Speaker 1: Scott Carr New Jersey's Campbell Soup Company shaking things at 488 00:27:58,240 --> 00:28:01,120 Speaker 1: the top cfo McQueen US and takes the top spot 489 00:28:01,119 --> 00:28:04,399 Speaker 1: at the company's meet in beverage division, replacing Chris Foley, 490 00:28:04,440 --> 00:28:07,120 Speaker 1: who takes the job of president of its snack division. 491 00:28:07,600 --> 00:28:10,480 Speaker 1: Breeze Airways has added a couple of new NonStop flights 492 00:28:10,480 --> 00:28:13,800 Speaker 1: out of Westchester County Airport, one to l A another 493 00:28:13,880 --> 00:28:17,440 Speaker 1: this Arisota Bradenton, Florida. Guests on Breeze can choose from 494 00:28:17,440 --> 00:28:21,240 Speaker 1: three price bundles offered as Nice, Nicer, and Nicest. Nicest 495 00:28:21,240 --> 00:28:24,240 Speaker 1: gets a first class seat aboard an airbus A to twenty. 496 00:28:24,400 --> 00:28:27,280 Speaker 1: Breeze now serves nine cities out of the airport, six 497 00:28:27,280 --> 00:28:30,800 Speaker 1: of them NonStop flights. The Garden State hasn't yet fallen 498 00:28:30,840 --> 00:28:33,119 Speaker 1: into a recession, according to data from the U. S 499 00:28:33,160 --> 00:28:36,880 Speaker 1: Bureau of Economic Analysis, despite the state's economy shrinking by 500 00:28:36,880 --> 00:28:39,840 Speaker 1: an annualized rate of one percent and this year's second quarter, 501 00:28:40,080 --> 00:28:43,080 Speaker 1: New Jersey's first quarter GDP shrunk by a two point 502 00:28:43,080 --> 00:28:45,840 Speaker 1: two percent annual rate, putting it thirty third in the 503 00:28:45,920 --> 00:28:48,480 Speaker 1: nation and worse than most states in the region. That's 504 00:28:48,520 --> 00:28:51,880 Speaker 1: the Bloomberg Tri State Business Report. I'm Scott Carran Scot 505 00:28:52,680 --> 00:28:54,680 Speaker 1: on Wall Street Bloomberg Radios on the air from San 506 00:28:54,720 --> 00:28:57,480 Speaker 1: Francisco to New York, London to Hong Kong. Let's check 507 00:28:57,520 --> 00:28:59,080 Speaker 1: in with our global news team for some of the 508 00:28:59,120 --> 00:29:01,760 Speaker 1: top stories heard on our three hundred affiliate radio stations 509 00:29:01,800 --> 00:29:08,400 Speaker 1: around the world. I'm Steve Potascott K and Exit Los Angeles. 510 00:29:08,440 --> 00:29:12,240 Speaker 1: We're talking about Roku's warning of slowly yards spending on 511 00:29:12,360 --> 00:29:16,680 Speaker 1: its streaming platform. Um Corney Donahoe on ktr H in Houston. 512 00:29:16,800 --> 00:29:20,160 Speaker 1: Marathon Oil is buying three billion dollars in natural gas 513 00:29:20,240 --> 00:29:24,760 Speaker 1: assets from Ensign Natural Resources. I'm Gina Servetti in for 514 00:29:25,040 --> 00:29:28,240 Speaker 1: w c c O in Minneapolis. I'm reporting that Minnesota 515 00:29:28,400 --> 00:29:30,800 Speaker 1: ranks third on a list of states where its residents 516 00:29:30,800 --> 00:29:34,280 Speaker 1: are prospering the most. I'm Steven Carol and Bloomberg d 517 00:29:34,320 --> 00:29:36,800 Speaker 1: a B Digital Radio in London. We've from reporting on 518 00:29:36,840 --> 00:29:39,240 Speaker 1: the market fallout from the fed's latest decision with a 519 00:29:39,320 --> 00:29:42,760 Speaker 1: sell off on stocks and bonds. I'm Scott Carr on 520 00:29:43,000 --> 00:29:46,760 Speaker 1: w d c H in Washington. I'm reporting media entrepreneur 521 00:29:46,840 --> 00:29:49,680 Speaker 1: Byron Allen's now added to the list of possible future 522 00:29:49,680 --> 00:29:52,960 Speaker 1: owners of the Washington Commander's football team and knows some 523 00:29:53,000 --> 00:29:55,280 Speaker 1: of the stories are twenty s hundred Bloomberg jurnalists and 524 00:29:55,280 --> 00:29:57,520 Speaker 1: analysts are reporting on this morning around the world. It 525 00:29:57,640 --> 00:30:00,120 Speaker 1: is five thirty nine on Wall Street. The following is 526 00:30:00,160 --> 00:30:04,480 Speaker 1: an editorial from Bloomberg Opinion. This seditorial was written by 527 00:30:04,520 --> 00:30:08,680 Speaker 1: the Bloomberg Editorial Board. Countries around the world have been 528 00:30:08,760 --> 00:30:12,960 Speaker 1: experimenting with ways to ease the pain of high energy prices, 529 00:30:13,280 --> 00:30:18,920 Speaker 1: with one solution getting increased attention windfall taxes. The idea 530 00:30:19,200 --> 00:30:22,800 Speaker 1: is to demand a surcharge from companies that have benefited 531 00:30:22,840 --> 00:30:26,280 Speaker 1: from high energy prices, then use the proceeds to aid 532 00:30:26,440 --> 00:30:31,719 Speaker 1: ailing consumers or businesses. Russia's invasion of Ukraine created a 533 00:30:31,760 --> 00:30:35,640 Speaker 1: boon for the energy industry. Surging profits have resulted in 534 00:30:35,800 --> 00:30:39,920 Speaker 1: billions distributed in dividends or spent on share by backs, 535 00:30:39,960 --> 00:30:44,240 Speaker 1: but the benefits of windfall taxes are very likely less 536 00:30:44,320 --> 00:30:49,040 Speaker 1: than advertised. Such a tax evades all the difficult problems 537 00:30:49,120 --> 00:30:52,360 Speaker 1: the Western world must confront as it tries to wean 538 00:30:52,440 --> 00:30:57,240 Speaker 1: itself from Russian energy. A windfall tax is no solution 539 00:30:57,600 --> 00:31:01,880 Speaker 1: at all. The seditorial was and by the Bloomberg Atitorial Board. 540 00:31:02,080 --> 00:31:05,280 Speaker 1: For more Bloomberg opinion, please go to Bloomberg dot com, 541 00:31:05,280 --> 00:31:08,280 Speaker 1: slash Opinion or O P I N go on the 542 00:31:08,280 --> 00:31:12,360 Speaker 1: Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg 543 00:31:12,400 --> 00:31:15,720 Speaker 1: opinion editorials every weekday. At this time. Terminal customers can 544 00:31:15,800 --> 00:31:18,960 Speaker 1: read more at O P I n go. This is 545 00:31:19,000 --> 00:31:24,520 Speaker 1: Bloomberg and Bloomberg Sports was brought to you by Audie. 546 00:31:24,520 --> 00:31:26,600 Speaker 1: Don't let someone else drive off in the Audi MALEI 547 00:31:26,680 --> 00:31:28,880 Speaker 1: you've always wanted to visit your local Tri state autie 548 00:31:28,880 --> 00:31:30,680 Speaker 1: dealer to get behind the wheel of yours today, or 549 00:31:30,800 --> 00:31:38,400 Speaker 1: visit autie Offers dot com for more information, markets, headlines 550 00:31:38,440 --> 00:31:41,400 Speaker 1: and breaking news twenty four hours a day at Bloomberg 551 00:31:41,480 --> 00:31:44,800 Speaker 1: dot Com, the Bloomberg Business Out and at Bloomberg Quicktake, 552 00:31:45,040 --> 00:31:54,120 Speaker 1: this is a Bloomberg Business Flash and I'm Karen Moscow 553 00:31:54,200 --> 00:31:56,960 Speaker 1: and stocks in US dot Index futures are lower this 554 00:31:57,080 --> 00:32:00,280 Speaker 1: morning after Jerome Powell said the Federal Reserve would raise 555 00:32:00,400 --> 00:32:05,200 Speaker 1: interest rates more than previously anticipated, sapping risk appetite. We 556 00:32:05,280 --> 00:32:07,760 Speaker 1: checked the markets for fifteen minutes throughout the trading day 557 00:32:07,800 --> 00:32:10,920 Speaker 1: on Bloomberg SMP future is down about ten points down, 558 00:32:10,960 --> 00:32:14,120 Speaker 1: futures down fifty two, NASDAG futures down thirty eight. The 559 00:32:14,200 --> 00:32:17,080 Speaker 1: decks in Germany's down three quarters of a percent, ten 560 00:32:17,160 --> 00:32:19,800 Speaker 1: year treasury down twenty two thirty seconds. He had four 561 00:32:19,840 --> 00:32:22,640 Speaker 1: point one nine percent yield down, the two year four 562 00:32:22,680 --> 00:32:25,760 Speaker 1: point seven two percent nine max Screwed oil is down 563 00:32:25,800 --> 00:32:27,800 Speaker 1: one and a half percent down a dollar thirty five 564 00:32:27,840 --> 00:32:30,440 Speaker 1: at eighty eight dollars sixty five cents of barrel comx 565 00:32:30,520 --> 00:32:32,960 Speaker 1: goal down one point six percent or twenty seven dollars 566 00:32:33,000 --> 00:32:36,840 Speaker 1: ten cents at sixteen ninety announce the euro point nine 567 00:32:36,920 --> 00:32:39,400 Speaker 1: seven five one against the dollar British found one point 568 00:32:39,400 --> 00:32:42,040 Speaker 1: one to five seven and the yen one forty eight 569 00:32:42,040 --> 00:32:44,920 Speaker 1: points to five bit coins of six tents percent at 570 00:32:44,920 --> 00:32:48,440 Speaker 1: twenty thousand, three hundred dollars. That's a Bloomberg business flash. 571 00:32:48,440 --> 00:32:50,760 Speaker 1: Now here's Michael Barr with more on what's going on 572 00:32:50,880 --> 00:32:53,600 Speaker 1: around the world. Michael, thank you very much. Darren. There 573 00:32:53,600 --> 00:32:57,280 Speaker 1: were three more missile tests by North Korea, including a 574 00:32:57,320 --> 00:33:01,640 Speaker 1: suspect and intercontinental ballistic missile that reportedly failed in midflight. 575 00:33:02,240 --> 00:33:05,600 Speaker 1: People in northern Japan awoke to sirens and were instructed 576 00:33:05,640 --> 00:33:09,880 Speaker 1: to seek shelter. Christian Javier and the Astros bullpen combined 577 00:33:09,920 --> 00:33:12,479 Speaker 1: for just a second no hitter in World Series history. 578 00:33:12,840 --> 00:33:16,080 Speaker 1: Houston won Game four against the Phillies five zip to 579 00:33:16,240 --> 00:33:18,920 Speaker 1: even the series at two games apiece. Speaking of ironneath 580 00:33:18,920 --> 00:33:23,200 Speaker 1: Thursday Night Football, the undefeated Philadelphia Eagles take on the 581 00:33:23,240 --> 00:33:28,120 Speaker 1: Houston Texas. Let's see the NFL's Washington commanders it could 582 00:33:28,120 --> 00:33:31,320 Speaker 1: be for sale. Owner Dan and Daniel Snyders say that 583 00:33:31,400 --> 00:33:36,120 Speaker 1: they've hired Bank of America Securities to consider potential transactions. NBA, Nixon, 584 00:33:36,120 --> 00:33:39,960 Speaker 1: Celtics lost Wizards one Global News twenty four hours a 585 00:33:40,040 --> 00:33:43,160 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 586 00:33:43,200 --> 00:33:45,960 Speaker 1: than hundred journalists and analysts in more than a hundred 587 00:33:45,960 --> 00:33:49,080 Speaker 1: twenty countries. Michael Barr, who didn't hit the powerball. This 588 00:33:49,320 --> 00:33:52,160 Speaker 1: is Bloomberg NA. Thank you, Michael, five forty nine on 589 00:33:52,200 --> 00:33:55,560 Speaker 1: Wall Street Live from the Bloomberg Interactive Broker Studios. This 590 00:33:55,720 --> 00:34:00,160 Speaker 1: is Bloomberg Daybreak. Let's go from fancifult monetary policy to 591 00:34:00,240 --> 00:34:03,440 Speaker 1: the actual stuff with the FED decision reaction. We're joined 592 00:34:03,440 --> 00:34:07,600 Speaker 1: now by Sarah House, senior economist at Wells Fargo. Good 593 00:34:07,600 --> 00:34:10,720 Speaker 1: to have you with us this morning after FED Day. Sarah, 594 00:34:10,800 --> 00:34:13,719 Speaker 1: Will would really be curious actually to get your reaction 595 00:34:13,800 --> 00:34:16,279 Speaker 1: to what we saw in the markets yesterday with the 596 00:34:16,360 --> 00:34:20,440 Speaker 1: statement saying that they might wait for the effects of 597 00:34:20,560 --> 00:34:23,680 Speaker 1: cumulative tightening to work their way through the economy, only 598 00:34:23,719 --> 00:34:26,439 Speaker 1: for Chairman Pale to step to the lectern and say, 599 00:34:26,719 --> 00:34:30,520 Speaker 1: maybe not so fast. Yes, so I think the the 600 00:34:30,680 --> 00:34:34,040 Speaker 1: palse press conference is actually consistent with the statement in 601 00:34:34,200 --> 00:34:37,040 Speaker 1: terms of signaling that they might be ready to slow 602 00:34:37,080 --> 00:34:40,160 Speaker 1: down the pace, but he elaborated on the back that 603 00:34:40,400 --> 00:34:42,480 Speaker 1: just because the bed is blowing down the pace of 604 00:34:42,520 --> 00:34:45,560 Speaker 1: Titan does not mean that they're in any ways done. 605 00:34:45,960 --> 00:34:48,200 Speaker 1: So I think what the markets were reacting to in 606 00:34:48,200 --> 00:34:50,919 Speaker 1: that press conference was the fact that he made very 607 00:34:50,920 --> 00:34:54,240 Speaker 1: clear that rates ultimately will likely need to go higher, 608 00:34:54,280 --> 00:34:56,600 Speaker 1: and they also might have to stay higher than what 609 00:34:56,680 --> 00:34:59,720 Speaker 1: the what the markets were anticipating going into the meeting. 610 00:35:00,040 --> 00:35:02,320 Speaker 1: And I guess the question now for market participants, and 611 00:35:02,360 --> 00:35:05,280 Speaker 1: I suppose for economists as well, is how much higher 612 00:35:05,280 --> 00:35:08,000 Speaker 1: will rates go? What will that terminal rate be? If 613 00:35:08,040 --> 00:35:10,319 Speaker 1: you changed your forecast based on what we heard from 614 00:35:10,320 --> 00:35:13,640 Speaker 1: the chairman yesterday, and we haven't changed it yet, but 615 00:35:13,719 --> 00:35:16,040 Speaker 1: I think the risks are certainly skewed higher, and I 616 00:35:16,080 --> 00:35:19,120 Speaker 1: think they were even skewed higher going into the meeting. 617 00:35:19,200 --> 00:35:21,480 Speaker 1: So if you show, for example, last Friday, another very 618 00:35:21,520 --> 00:35:25,359 Speaker 1: strong outturn in real consumer spending at the same time 619 00:35:25,400 --> 00:35:28,000 Speaker 1: that you are seeing demand for labor hold up in 620 00:35:28,040 --> 00:35:30,880 Speaker 1: the pretty moderate slow down in the jobs market and 621 00:35:30,960 --> 00:35:34,240 Speaker 1: hiring picture generally, and so I think from that picture 622 00:35:34,400 --> 00:35:36,560 Speaker 1: that we saw that the FED still has more work 623 00:35:36,600 --> 00:35:40,440 Speaker 1: to do, particularly given the stickiness of of inflation. So 624 00:35:40,560 --> 00:35:43,960 Speaker 1: did anything change much after the statement, given that the 625 00:35:44,000 --> 00:35:47,640 Speaker 1: markets have been sort of pricing in the idea that 626 00:35:47,719 --> 00:35:51,920 Speaker 1: we could see slower interest rate hike increases in in 627 00:35:52,480 --> 00:35:55,480 Speaker 1: coming meetings. The chairman even opened up the possibility that 628 00:35:55,520 --> 00:35:59,040 Speaker 1: we could see it next month. Yes, I think that 629 00:35:59,480 --> 00:36:01,960 Speaker 1: was in many always the primary focus of the meeting 630 00:36:02,239 --> 00:36:04,960 Speaker 1: meeting is just trying to get a sense of, well, 631 00:36:04,760 --> 00:36:07,160 Speaker 1: what's ahead, even at the at the next meeting. So 632 00:36:07,200 --> 00:36:09,719 Speaker 1: of course the Feds moved so fast this year that 633 00:36:09,880 --> 00:36:12,439 Speaker 1: even just trying to get a handle on what's that 634 00:36:12,440 --> 00:36:16,160 Speaker 1: that very next meeting has has become a primary focus. 635 00:36:16,280 --> 00:36:18,960 Speaker 1: But it's been important to not lose sight of where 636 00:36:18,960 --> 00:36:22,000 Speaker 1: the Fed ultimately goes. So I think that's what was 637 00:36:22,320 --> 00:36:25,680 Speaker 1: what Pal was having to balance um yesterday, And I 638 00:36:25,680 --> 00:36:27,680 Speaker 1: think we saw at least when it comes to December 639 00:36:27,960 --> 00:36:31,000 Speaker 1: and in a very strong case is building for the 640 00:36:31,000 --> 00:36:33,800 Speaker 1: FED to downshift only a fifty basis point Hicks. So 641 00:36:33,880 --> 00:36:36,920 Speaker 1: not only does it seem like the Feds changing their 642 00:36:37,040 --> 00:36:40,600 Speaker 1: reaction function a little bit, so becoming less tied to 643 00:36:41,000 --> 00:36:44,799 Speaker 1: what uh just a few data prints hit like, but 644 00:36:44,960 --> 00:36:48,359 Speaker 1: trying to trying to incorporate a more holistic view of 645 00:36:48,480 --> 00:36:51,200 Speaker 1: what they're seeing in the economy, um in areas like 646 00:36:51,239 --> 00:36:54,800 Speaker 1: housing that reflects some of the bigger forces of tightening 647 00:36:54,800 --> 00:36:57,120 Speaker 1: that we've seen, as well as accounting for just how 648 00:36:57,160 --> 00:36:59,520 Speaker 1: much tightening they've already done and the lags with within 649 00:36:59,560 --> 00:37:02,200 Speaker 1: monitor policy. What is the FED need to say to 650 00:37:02,200 --> 00:37:04,920 Speaker 1: bring more conviction to that view for a fifty basis 651 00:37:04,960 --> 00:37:08,719 Speaker 1: point increase next month. Well, I think you probably have 652 00:37:08,880 --> 00:37:11,640 Speaker 1: to hear some more caution on the part of other 653 00:37:11,680 --> 00:37:16,400 Speaker 1: side speakers. So we certainly saw Lale Brander device chair 654 00:37:16,880 --> 00:37:20,760 Speaker 1: strike a cautionary note. She was mentioning the cumulative effects 655 00:37:20,760 --> 00:37:23,279 Speaker 1: of titaning you need to be in consideration, you know, 656 00:37:23,360 --> 00:37:26,880 Speaker 1: early in October esther George, who's traditionally been a hawk, 657 00:37:26,960 --> 00:37:30,680 Speaker 1: has been a person who has been out there signaling that, look, 658 00:37:30,680 --> 00:37:32,560 Speaker 1: we need to be a little bit more cautious with 659 00:37:32,600 --> 00:37:34,880 Speaker 1: where we go from here. We've already done quite a 660 00:37:34,880 --> 00:37:36,960 Speaker 1: lot and we want to be careful that we don't 661 00:37:36,960 --> 00:37:40,000 Speaker 1: overdo it. Then we don't oversteer to use to use 662 00:37:40,040 --> 00:37:41,920 Speaker 1: her words, but I think we have to see that 663 00:37:42,080 --> 00:37:44,799 Speaker 1: that course grow a little bit louder at the same 664 00:37:44,840 --> 00:37:46,759 Speaker 1: time that we see at least so a little bit 665 00:37:46,760 --> 00:37:49,719 Speaker 1: of softening in some of the inflation prints. That so 666 00:37:49,760 --> 00:37:51,239 Speaker 1: we're got to look at that next week, and I 667 00:37:51,280 --> 00:37:53,120 Speaker 1: think there's there's a decent chance, but at least in 668 00:37:53,120 --> 00:37:55,960 Speaker 1: the core rains we see at least a moderate step 669 00:37:56,040 --> 00:38:00,759 Speaker 1: towards a slightly slightly slower core inflation. Only about thirty 670 00:38:00,760 --> 00:38:03,120 Speaker 1: seconds left here, Sarah, do you think we'll see softness 671 00:38:03,160 --> 00:38:06,160 Speaker 1: in the jobs market with the payrolls report coming out tomorrow. 672 00:38:07,320 --> 00:38:09,239 Speaker 1: I think we'll see some moderation. So we're looking for 673 00:38:09,280 --> 00:38:12,120 Speaker 1: a game of just a d that, you know, a 674 00:38:12,160 --> 00:38:16,040 Speaker 1: pretty significant slowdown from what we saw even even last month, 675 00:38:16,080 --> 00:38:17,880 Speaker 1: but also just been a year to date average of 676 00:38:17,920 --> 00:38:20,719 Speaker 1: four hundred and twenty. But if you step back, that's 677 00:38:20,760 --> 00:38:22,799 Speaker 1: that's so pretty sharp number when we think about just 678 00:38:22,880 --> 00:38:25,440 Speaker 1: the overall way our supply and population dynamics of the 679 00:38:25,480 --> 00:38:29,160 Speaker 1: United States. So moderating but still very strong. Thanks there 680 00:38:29,280 --> 00:38:32,560 Speaker 1: as always, Sarah House, senior economists at Wells Fargo with 681 00:38:32,640 --> 00:38:35,239 Speaker 1: us this morning, Karen Well, Nathan. It is five at 682 00:38:35,320 --> 00:38:37,720 Speaker 1: days three on Wall Street and now a legal story 683 00:38:37,760 --> 00:38:41,640 Speaker 1: we're watching this morning. A federal judge. Well, first of all, 684 00:38:41,640 --> 00:38:45,000 Speaker 1: it's brought to you by American Arbitration Association. Business disputes 685 00:38:45,040 --> 00:38:48,920 Speaker 1: are inevitable, resolve faster with the American Arbitration Association, the 686 00:38:49,000 --> 00:38:52,520 Speaker 1: global leader in alternative dispute resolution for over ninety years. 687 00:38:52,760 --> 00:38:55,560 Speaker 1: More at a dr dot org. Now, a federal judge 688 00:38:55,560 --> 00:38:58,800 Speaker 1: has blocked Penguin Random Houses almost two point two billion 689 00:38:58,800 --> 00:39:03,279 Speaker 1: dollar acquisition of rival book publisher Simon and Schuster, rulling 690 00:39:03,360 --> 00:39:06,000 Speaker 1: at the purchase of the fourth largest US book publisher 691 00:39:06,040 --> 00:39:09,200 Speaker 1: by the largest publisher with lesson competition in the market 692 00:39:09,239 --> 00:39:12,560 Speaker 1: for publishing rights to anticipated top selling books. It's the 693 00:39:12,560 --> 00:39:15,279 Speaker 1: first win for the Justice Department's Anti trust division after 694 00:39:15,320 --> 00:39:18,160 Speaker 1: three losses in a row. For more Bloomberg stun Grosso 695 00:39:18,200 --> 00:39:21,200 Speaker 1: speaks to anti trust law expert Harry First, a professor 696 00:39:21,400 --> 00:39:25,120 Speaker 1: at ny U Law School. Anti trust is usually focused 697 00:39:25,200 --> 00:39:29,480 Speaker 1: on harm to consumers, but the Justice Department's theory here 698 00:39:29,800 --> 00:39:34,680 Speaker 1: was harmed to authors and authors earnings. Was this a 699 00:39:34,719 --> 00:39:38,640 Speaker 1: novel approach? So this is the second interesting thing about 700 00:39:38,680 --> 00:39:40,719 Speaker 1: the case. The first one was that they want The 701 00:39:41,120 --> 00:39:45,799 Speaker 1: second interesting thing is the Justice Departments focused on, as 702 00:39:45,840 --> 00:39:49,440 Speaker 1: they like to call it, on labor. So on workers, 703 00:39:49,880 --> 00:39:52,920 Speaker 1: and this has been an important part of the Biden 704 00:39:52,920 --> 00:39:57,080 Speaker 1: administration's political focus, that they want to do things to 705 00:39:57,160 --> 00:40:02,600 Speaker 1: make workers incomes higher, and this case was positioned to 706 00:40:02,760 --> 00:40:06,800 Speaker 1: focus on that. On workers. Now, when we think of workers, 707 00:40:07,200 --> 00:40:09,800 Speaker 1: we think of, you know, people in the oil fields, 708 00:40:10,120 --> 00:40:14,839 Speaker 1: people on manufacturing line. We don't usually think of Stephen King. 709 00:40:15,120 --> 00:40:18,880 Speaker 1: So workers and million dollar advances, I don't know, but 710 00:40:18,960 --> 00:40:22,840 Speaker 1: here it's authors. Now, from an economist point of view, 711 00:40:23,120 --> 00:40:26,879 Speaker 1: and really also from a technically any trust point of view, 712 00:40:27,400 --> 00:40:31,319 Speaker 1: workers or labor is another market, and any trust is 713 00:40:31,320 --> 00:40:34,879 Speaker 1: concerned with competition and markets. So you want to have 714 00:40:35,160 --> 00:40:40,560 Speaker 1: appropriate competition, not just for firms as they sell products, 715 00:40:40,600 --> 00:40:45,080 Speaker 1: but firms as they buy products from their suppliers. Now 716 00:40:45,320 --> 00:40:50,000 Speaker 1: the suppliers here are authors, which supply their talent, and 717 00:40:50,440 --> 00:40:53,719 Speaker 1: for the markets to work right, you want competition, as 718 00:40:53,719 --> 00:40:56,239 Speaker 1: they say, on both sides of the market. Is this 719 00:40:56,320 --> 00:40:59,640 Speaker 1: a case really of there's been so much consolidation in 720 00:40:59,680 --> 00:41:03,120 Speaker 1: the pub wishing industry for twenty years and taking it 721 00:41:03,160 --> 00:41:07,160 Speaker 1: from five to four was just a step too far. Well, 722 00:41:07,640 --> 00:41:12,040 Speaker 1: my answer would be sure, But under current law that's 723 00:41:12,120 --> 00:41:14,640 Speaker 1: not enough. Judges will say, well, so tell me why 724 00:41:14,719 --> 00:41:18,920 Speaker 1: four is not enough to be competition. So the government 725 00:41:18,960 --> 00:41:21,920 Speaker 1: has to define a market and has to show some 726 00:41:22,000 --> 00:41:25,680 Speaker 1: effect within a defined market. Now what's critical. The judge 727 00:41:25,719 --> 00:41:29,640 Speaker 1: accepted the definition of a market that the Justice Department 728 00:41:29,880 --> 00:41:34,280 Speaker 1: put forward, which is sort of an unusual market market 729 00:41:34,400 --> 00:41:38,399 Speaker 1: for US publishing rights to anticipated top selling books, so 730 00:41:38,719 --> 00:41:42,400 Speaker 1: exactly what books are those? Whatever it is, it's actually 731 00:41:42,440 --> 00:41:46,920 Speaker 1: not the market for advances to all authors. So the 732 00:41:47,000 --> 00:41:50,120 Speaker 1: judge accepted the notion that was put forward by the 733 00:41:50,200 --> 00:41:53,640 Speaker 1: Justice Department's economists that this is a well enough define 734 00:41:53,760 --> 00:41:58,080 Speaker 1: market in which you can show that putting these two 735 00:41:58,120 --> 00:42:03,640 Speaker 1: firms together will result in lowering the price that they 736 00:42:03,680 --> 00:42:07,040 Speaker 1: pay for the author's right and as Harry First, a 737 00:42:07,040 --> 00:42:09,200 Speaker 1: professor at n y U Law School, speaking at the 738 00:42:09,239 --> 00:42:12,839 Speaker 1: Bloomberg Student Grosso, catch more of that interview plus analysis 739 00:42:12,840 --> 00:42:15,680 Speaker 1: of the latest legal news by subscribing to the Bloomberg 740 00:42:15,760 --> 00:42:18,719 Speaker 1: Law Podcast or downloading the show at Bloomberg dot com 741 00:42:18,760 --> 00:42:22,640 Speaker 1: slash podcasts. Attorneys can find exceptional legal research and business 742 00:42:22,640 --> 00:42:25,680 Speaker 1: development tools at Bloomberg Law dot com and on the 743 00:42:25,719 --> 00:42:30,000 Speaker 1: Bloomberg terminal at b Law Go. And Futures. This morning, 744 00:42:30,040 --> 00:42:33,919 Speaker 1: they're lower SMP Futures down twelve points down futures down 745 00:42:34,040 --> 00:42:39,120 Speaker 1: seventy two and Nasdag futures down still ahead. On Bloomberg 746 00:42:39,160 --> 00:42:41,320 Speaker 1: day Break, we have a check on the business headlines 747 00:42:41,360 --> 00:42:43,680 Speaker 1: and all the news you need to start your day. 748 00:42:44,200 --> 00:42:45,960 Speaker 1: And this is Bloomberg