Speaker 1: Live from the Bloomberg Interacted Burgers Studios. This is Bloomberg
Speaker 1: day Break for Thursday, November three. Coming up, the Shower
Speaker 1: stocks drop as the Fed continues it's aggressive battle against inflation.
Speaker 1: The Bank of England set to deliver its biggest rate
Speaker 1: increase in thirty three years. Massive job cuts may be
Speaker 1: coming at Twitter and China lucks down the world's largest
Speaker 1: iPhone factory. The man accused of shooting two Newark police
Speaker 1: officers has been arrested. Plus President Biden warrens voters democracy
Speaker 1: is at stake in the mid terms. I'm Michael blar
Speaker 1: More and I'm John Stas Shower Sports, baseball history, the
Speaker 1: Aftros that combine no hither on the Phillies that tie
Speaker 1: the World Series than Nicks lost to the Hawks. That's
Speaker 1: all training ahead on Bloomberg Daybreak on Bloomberg Eliven Free
Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one
Speaker 1: oh six one, Boston Bloomberg nine sixties and Francisco Sirius
Speaker 1: x AM one nineteen and around the world on Bloomberg
Speaker 1: Radio Dot Carmen via the Bloomberg Business App. Good morning,
Speaker 1: I'm Nathan Higer and I'm Karen Moscow in US Dock
Speaker 1: Index futures are lower this morning. We're coming up to
Speaker 1: five oh one on Wall Street, and we check the
Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg,
Speaker 1: SMP future is down about five points down, futures down sixteen,
Speaker 1: nasdack futures down twenty three, and the Tenuere treasury down eleven.
Speaker 1: Thirty seconds, he had four point one four percent and
Speaker 1: they yield on a two year four point six eight percent. Nathan, Karen,
Speaker 1: we begin with the Fed fueled sell off on Wall Street.
Speaker 1: The SMP five hundred suffered its worst route on a
Speaker 1: FED decision day since January one. It plunged two and
Speaker 1: a half percent. As expected, the Fed did raise rates
Speaker 1: seventy five basis points for a fourth straight time, but
Speaker 1: stocks sold off. During Chairman J. Powell's news conference, he
Speaker 1: made it clear more rate hikes are coming. It is
Speaker 1: very premature to be thinking about pausing. So people when
Speaker 1: they hear lags, they think about about a pause. It's
Speaker 1: very premature in my view to to to think about
Speaker 1: or be talking about pausing our rate hike. We we have,
Speaker 1: we have a ways to go. Our policy we need
Speaker 1: ongoing rate hikes to get to UM to that level.
Speaker 1: The move by j Pale and the FED lifts a
Speaker 1: benchmark to a three and three quarter to four percent range.
Speaker 1: That's from nearly zero in March. Well reaction pour it
Speaker 1: into the FED keeping its aggressive tone. Scott Minored, as
Speaker 1: chief investment officer at Guggenheim, the message is loud and clear.
Speaker 1: You know, we're going to keep raising rates until we
Speaker 1: get price stability, and that's probably gonna go into thank Guggenheim.
Speaker 1: Scott Minor has said the FED may raise rates significantly
Speaker 1: higher than five to five and a half percent expectations
Speaker 1: in the first half of next year. We also caught
Speaker 1: up with a black Rock senior portfolio manager, Jeffrey Rosenberg.
Speaker 1: The FED does not want to see a replay of
Speaker 1: what we saw in July. It does not want to
Speaker 1: see premature financial condition easing on the signs of any
Speaker 1: FED pivot. Black Rocks Senior portfolio manager Jeffrey Rosenberg's sentiments
Speaker 1: were echoed by a former Philadelphia FED president, Charles Plosser.
Speaker 1: They know they can't they can't just stop because it
Speaker 1: won't work. It's a story who experience teaches us that
Speaker 1: so um, they don't have much choice if they really
Speaker 1: wanted to commit to lower inflation. Former Philadelphia Fed President
Speaker 1: Charles Plaster made the comments in an interview with Bloomberg's
Speaker 1: Kathleen Hayes, and we'll bring you more of that conversation
Speaker 1: a little later in the program. Well, the focus on
Speaker 1: monetary policy now Karen turns to Europe or The Bank
Speaker 1: of England is expected to deliver its biggest rate increase
Speaker 1: in thirty three years. We get a preview from Bloomberg's
Speaker 1: U and Pots in London another day. Another jumbo rate,
Speaker 1: like a seventy five basis point increase in the key
Speaker 1: UK industrates is now almost fully priced in by money markets.
Speaker 1: That would take the base rate from two and a
Speaker 1: quarter to three, the highest since two thousand and eight
Speaker 1: and the biggest thing go hike since. Governor Andrew Baby
Speaker 1: will give a press conference shortly after the ouncement, which
Speaker 1: comes at midday. Investors will also be watching out for
Speaker 1: the bank's reports on the economic outlook, likely to confirm
Speaker 1: a recession is now under way. A loss has changed
Speaker 1: since the last forecast at the beginning of August, beefed
Speaker 1: up government support for household energy bills will restrain inflation
Speaker 1: over the winter after April. The government is yet to
Speaker 1: set out a plan. In London, I'm you and pot
Speaker 1: spin Bag Daybreak, are you and Thanks? In Asia, China
Speaker 1: has lockdown the world's largest iPhone factory, and Bloombergy Daybreak
Speaker 1: Asia anchor Brian Curtis has more from Hong Kong, China
Speaker 1: is not playing games with COVID zero. Authorities swooped in
Speaker 1: and put the zone around the Jung Jo fox Can
Speaker 1: plant off limits. It's the last thing that Apple needed,
Speaker 1: or that fox Can wanted, given the upcoming holiday season.
Speaker 1: First a COVID outbreak, then an enforced quarantine, and then
Speaker 1: an exodus of workers. They literally walked twenty miles to
Speaker 1: get home or to a train. Some two hundred and
Speaker 1: people work here. It's a stark reminder of the dangers
Speaker 1: for Apple in a COVID zero mindset. The lockdown runs
Speaker 1: until November nine, but it could go longer. In Hong Kong,
Speaker 1: Brian Curtis, Bloomberg Daybreak, All right, Brian, thank you. In
Speaker 1: corporate news, big job cuts are on the way at Twitter.
Speaker 1: Bloomberg News has learned the new owner, Elon Musk plans
Speaker 1: to eliminate about half the social media company's workforce. That's
Speaker 1: about thirty seven hundred jobs. We get more from Bloomberg,
Speaker 1: said Ludlow in our nine sixty newsroom in San Francisco.
Speaker 1: Sources say that's the plan. The layoff list will be
Speaker 1: confirmed Friday, and those affects it will be informed. We
Speaker 1: we kind of knew this was coming, right. We reported
Speaker 1: over the weekend that managers across product teams have been
Speaker 1: asked to drop a list of candidates that would reduce
Speaker 1: headcount by um you know, and Musque has making his
Speaker 1: mark on this company, Bloomberg said. Bloodlow says Musk also
Speaker 1: intends to reverse the company's existing work from anywhere policy,
Speaker 1: the asking remaining employees to report to offices. Then job
Speaker 1: cuts may also be on the way at Morgan Stanley.
Speaker 1: Nathan Ruter's is reporting the financial firm has started layoffs
Speaker 1: globally in the coming weeks. Several stocks are on the
Speaker 1: move this morning following earnings. Karen, We're watching shares of
Speaker 1: Qualcom this morning. They're down nearly seven percent. Company delivered
Speaker 1: a far weaker forecast than expected. We get the details
Speaker 1: from Bloomberg's Charlie Pellett. Qualcom is the biggest maker of
Speaker 1: smart phone processors, and it says revenue will be nine
Speaker 1: point two to ten billion dollars in the fiscal first quarter.
Speaker 1: Now that compares with an average analysts estimate of twelve
Speaker 1: billion dollars. The outlook suggests that the slumping market for
Speaker 1: consumer devices is eroding even faster than expected. Even before
Speaker 1: the report, the stock was down thirty eight percent this year,
Speaker 1: hurt by concerns that smartphone demand was on shaky ground
Speaker 1: in New York. Charlie Pellett, Bloomberg Daybreak, Great, Charlie, thanks.
Speaker 1: Will Shares of l t C USA or down more
Speaker 1: than this moreing the broadband and video service providers earnings
Speaker 1: missing analysts estimate. Shares a Roku down eighteen percent, the
Speaker 1: maker of set top boxes consumers used to watch streaming services,
Speaker 1: forecast a wider than expected fourth quarter loss. Straight ahead,
Speaker 1: we have your latest local headlines, plus a check of sports,
Speaker 1: and this is Bloomberg. Caren. It's five oh seven on
Speaker 1: Wall Street where fifty five degrees in Central Park's instruction
Speaker 1: going both ways on the New Jersey Turnpike will fill
Speaker 1: you into the details and traffic shortly. First Michael Bars
Speaker 1: here with Lauren What's going on in New York and
Speaker 1: around the world. Good morning, Michael, Good morning Nathan. Authorities
Speaker 1: say they got him. A two day man hunt ended
Speaker 1: in Newark, New Jersey, with the arrest of the suspect
Speaker 1: who police say shot to officers Tuesday. Police arrested thirty
Speaker 1: year old Kendall Howard yesterday at the suspect and the
Speaker 1: shooting of two of their officers while they were serving
Speaker 1: a warrant. Swat storming a Newark apartment building, going door
Speaker 1: to door until police say they found him and brought
Speaker 1: him out Essex count The acting prosecutor, Ted Stephens says
Speaker 1: Howard will face charges. Mr. Howard has been charged with
Speaker 1: two counts of attempted murder of north police officers. Prosecutor
Speaker 1: Ted Stephens says the injured officers are hospitalized in stable condition.
Speaker 1: The convicted shooter in the Parkland, Florida High school massacre
Speaker 1: has been sentenced, Bloomberg said. Baxter reports Nicholas Crew sentenced
Speaker 1: for each of the students seen for the murder in
Speaker 1: the first degree of Peter Way. The court includes a
Speaker 1: mandatory life sentence without the possibility of parole. Judge Elizabeth
Speaker 1: Sharer handing down seventeen life sentences connected to the students involved.
Speaker 1: Those sentences are to be run consecutively, so seventeen lifetimes.
Speaker 1: In total. There were thirty four sentences in San Francisco.
Speaker 1: I'm at Baxter Bloomberg Gay Break. With the midterm elections
Speaker 1: just five days away, President Biden is warning about political violence.
Speaker 1: In a speech last night by and said voters are
Speaker 1: choosing between democracy and extremism and pointed the finger directly
Speaker 1: at former President Trump. American Democrat Center attacked because the
Speaker 1: defeated former president of the United States refused to accept
Speaker 1: the results election. President Biden then linked violence at the
Speaker 1: Capitol on January six to the recent attack on how
Speaker 1: speaker Nancy Pelosi's husband. Former President Trump has settled a
Speaker 1: lawsuit filed by a group of protesters who say they
Speaker 1: were roughed up by the Republicans private security guards during
Speaker 1: his presidential campaign. The two sides settled as a jury
Speaker 1: was being selected in the New York courtroom for a
Speaker 1: civil trial. The tales of the settlement were not divulged.
Speaker 1: The lawsuit alleges Trump's bodyguards attacked him outside as Manhattan
Speaker 1: skyscraper on September of as they protested negative comments Trump
Speaker 1: made about Mexico and Mexican immigrants. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than twenty seven under and listed analysts more
Speaker 1: than a D twenty countries. Michael Barr, this is Bloomberg. Nathan. Okay, Michael,
Speaker 1: thank you. Almost five ten on Wall Street time for
Speaker 1: the Bloomberg Sports something brought to you by Tri State Autie.
Speaker 1: Good morning, John Stanshown. Alright, good morning, Nathan, Astros and
Speaker 1: Phillies Game four the World Series and night after the
Speaker 1: Phillies one with a shutout. The Astros at a shutout,
Speaker 1: that's not all they had. And the pitch from Pressley,
Speaker 1: a swing of the groundball to third. Bregman has it,
Speaker 1: the throw to first and that'll do it. The Astros
Speaker 1: even up the World Series with a five to nothing win.
Speaker 1: Did I and four of their pictures combined to no
Speaker 1: hit the Philadelphia Phillies As Pressley finishes off what Christian
Speaker 1: Javier started being at the call. Houston scored all the
Speaker 1: game's five runs on five hits in the fifth in
Speaker 1: the Phils could not touch Javier, who's on an amazing role.
Speaker 1: He allowed only one hit, and his start versus the
Speaker 1: Yankees and the a LCS, and his last six starts
Speaker 1: covering thirty four innings, Javier has not allowed of an
Speaker 1: He's never allowed more than two hits. Only previous World
Speaker 1: Series no hitter Don Larson's perfect game in nineteen fifty six.
Speaker 1: Pivotal Game five. Tonight, Euston starts Justin Burland, a future
Speaker 1: Hall of Famer, still seeking his first World Series win.
Speaker 1: He's owing six. The x met no Noah synder Guard
Speaker 1: starts for the field. Disastrous game for the Knicks at
Speaker 1: the Garden. They led Atlanta by twenty three and then
Speaker 1: trailed by nineteen, so they got outscored seventy nine to
Speaker 1: thirty seven. The Hawks won one twelve ninety nine, led
Speaker 1: by all season pick up Damant J. Murray scored a
Speaker 1: career high thirty six points. Nicks third straight lost their
Speaker 1: first loss at home. The Nets and Kyrie Irving jointly
Speaker 1: announced both will donate five hundred thousand dollars to anti
Speaker 1: hate causes. Irving last Saturday doubled down on that posting
Speaker 1: of an anti Semitic video he has navalist a statement
Speaker 1: that said, he takes responsibility meant no harm, opposes all
Speaker 1: forms of hatred. John stashi Warre Bloomberg Sports, Nathan, thank you,
Speaker 1: john S and P. Futures down down four points, Stown
Speaker 1: futures down sixteen. NAT futures down twenty three after the
Speaker 1: sell off yesterday following the FED decision. Former Philadelphia Fed
Speaker 1: President Charles Plaster with us next. This is Bloomberg. Bloomberg
Speaker 1: Sports is brought to you by Audie. Don't let someone
Speaker 1: else drive off in the Audi model you've always wanted.
Speaker 1: Visit your local price state Audie dealer to get behind
Speaker 1: the wheel of yours today, or visit Autie Offers dot
Speaker 1: com for more information, markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot com and Bloomberg Business,
Speaker 1: and at Bloomberg Quicktape. This is a Bloomberg Business Flash
Speaker 1: and I'm Karen Moscow Future is following this morning. SMP
Speaker 1: futures down about eight points down, futures down forties seven,
Speaker 1: NASDACK futures down thirty four and the ten year treasury
Speaker 1: down sixteen thirty seconds held four point one six percent.
Speaker 1: They yield on the two year at four point six
Speaker 1: eight percent. And that's a Bloomberg Business Flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world. Michael,
Speaker 1: good morning, Good morning, Karen. President Joe Biden asked voters
Speaker 1: to consider the future of democracy when they vote in
Speaker 1: next week's mid term elections. During last night's speech by
Speaker 1: nerge voters to reject Donald Trump's big lie. Christian Javier
Speaker 1: and the Astro's bullpen combined for adjust the second no
Speaker 1: hitter in the Rule series history. Houston won Game four
Speaker 1: against the Phillies five zip to even the series two games.
Speaker 1: Apiece Global News twenty four hours a day on air
Speaker 1: and on Bloomberg Quicktake, powered by more than twenty seven
Speaker 1: hundred journalists and analysts in more than one hundred twenty countries.
Speaker 1: I'm Michael Barr, and this is Bloomberg. Nathan, Thank you, Michael.
Speaker 1: It is eighteen on Wall Street Life from the Bloomberg
Speaker 1: Interactive Brokers Studios. This is Bloomberg Daybreak in morning. I'm
Speaker 1: Nathan Haker. It's a new phase in the Federal reserves
Speaker 1: fight against inflation. After raising interest rates another seventy five
Speaker 1: basis points again, FED chair j Pale said rates will
Speaker 1: have to go higher than earlier projected, though he said
Speaker 1: the path to get there may mean smaller hikes. For
Speaker 1: more on the central banks policy, The Outlook, Bloomberg's Kathleen
Speaker 1: Hayes and Heidi Stroud Watts spoke with former Philadelphia Federal
Speaker 1: Reserve Bank President Charles Plosser to use this a hawkish fan,
Speaker 1: Is it a debblish fan. Is it a FED that
Speaker 1: is on the right track? Well, it's not a hardish fan.
Speaker 1: I mean that they put themselves in a position where
Speaker 1: they had to do this. This is chinaba, a problem
Speaker 1: of their own nation. Uh. I thought Power today spoke
Speaker 1: very eloquently about inflation, about the dangers of inflation, why
Speaker 1: the FED needed to act. I don't know where that
Speaker 1: power was twelve or eighteen months ago when um he
Speaker 1: said they didn't have to worry about inflation for at
Speaker 1: least two or three years, that the f should keep
Speaker 1: at zero populated zero and not worried about inflation. Um.
Speaker 1: I hope he's more accurate now than he was then.
Speaker 1: Uh So, I think they did exactly where everybody expeking
Speaker 1: to do. I think the question is is this enough?
Speaker 1: And you took the worst part in my mouth is
Speaker 1: it an willing to go above the neutral rate? He says,
Speaker 1: it's an estimate somewhere, you know, two to three percent. Uh,
Speaker 1: is that going to be high enough even if they
Speaker 1: do go above neutral? Well, I don't. I don't, uh,
Speaker 1: people being different things by by neutral, but the definitely
Speaker 1: between two and three percent. I don't think it's high
Speaker 1: enough if if inflation is still sitting at four or
Speaker 1: five percent, even if it comes down from where it
Speaker 1: is now, which I expected to do, it's not going
Speaker 1: to be a two percent by the end of the year.
Speaker 1: So they're gonna be looking at a four or five
Speaker 1: percent inflation right at the end of the year. That
Speaker 1: means that real interest rate or still deep in native
Speaker 1: even if they get to two or three percent, but
Speaker 1: the native the real rate will still be minus two percent.
Speaker 1: That's not that's very accommodated still and not very restricted.
Speaker 1: So I don't think that's enough. It will be enough
Speaker 1: at the end of the day. Uh, maybe if inflation
Speaker 1: comes down, maybe they're going to reprieve. We don't know that,
Speaker 1: but I think it's it's it's it's misleading I believe
Speaker 1: to sort of talking about the mutual rate as if
Speaker 1: that's enough to bring inflation down by any traditional standards,
Speaker 1: it won't be without. Actually, in fact, seventy five basis
Speaker 1: points hikes are still feasible. I think they are, and
Speaker 1: I think I think that the Fed, I think power
Speaker 1: was a little bit um um playing the markets are
Speaker 1: trying to appease the markets with this. I don't think
Speaker 1: you should have taken seventy five basis points off the table,
Speaker 1: as many people have interpreted. I don't. I think they
Speaker 1: need to be still on the table. Uh and uh,
Speaker 1: and that the FED all to have that option in
Speaker 1: I think there's a right. So if that's the case,
Speaker 1: have they dune themselves a bigger hole in terms of
Speaker 1: market expectations? Well, they may have. I mean they doing
Speaker 1: themselves a big hole two years ago when they adopted
Speaker 1: their new strategy, just said inflation was not going to
Speaker 1: be a problem. They can keep ranking zero for two
Speaker 1: or three years. Um. They dug a hole for themselves there.
Speaker 1: And you know, frankly, if they had done what many people,
Speaker 1: myself and through the suggest that they do is to
Speaker 1: begin tapering that purchases and getting on with the rate
Speaker 1: increases a year ago, um, they wouldn't be in this
Speaker 1: position of having in race rate seven five paces point
Speaker 1: or or disrupt markets with rapid interests. It reminds me
Speaker 1: of the old what we used to call co stop
Speaker 1: policies of the family step on the accelerated to HOUSTI
Speaker 1: economy and Jewish employment only have to only having to
Speaker 1: slam on the brakes to stop inflation. That's the policy
Speaker 1: they seem you to be practicing, Charlie. At this point,
Speaker 1: is it possible for the fetter reserve to UH slow
Speaker 1: the economy? Powell talked about the hot labor market possibly
Speaker 1: cooling off. He was getting inflation downds challenging. But there's
Speaker 1: a chance of a softer or softish landing. Can the
Speaker 1: fet achieved that? Or is a recession pretty much inevitable
Speaker 1: this point? Who knows? I mean the Fed? It could
Speaker 1: The Fed should very likely UH and achieve a sort
Speaker 1: of somewhat soft landing. I don't know the answer to that, um,
Speaker 1: but it's a very fine needle and it will take
Speaker 1: a lot of luck, I think, not just a policy decision,
Speaker 1: but luck in order to achieve that. At this point.
Speaker 1: Is there there's just no record of the Fed raising
Speaker 1: rates to minus two percent in rial firms and stopping insulation.
Speaker 1: So the balance run off Charlie, that's good. Yeah, if
Speaker 1: Balanci run off is going to get up about a month,
Speaker 1: what is its sixty in treasury, sixty billion in in nbs,
Speaker 1: it's gonna take about three months to get there. Um
Speaker 1: is this going to make a difference in how much
Speaker 1: they need to raise race? I know Jim Buller from St.
Speaker 1: Louis FED and others have sort of talked about this.
Speaker 1: What's your sense of how that's going to work? And
Speaker 1: if if aggressive balance sheet runoff could augment the amount
Speaker 1: of rate hives they seem ready to do right now. Well,
Speaker 1: I think that's very duteous to day Shi. He didn't know.
Speaker 1: They don't know what the effect of the balance sheet
Speaker 1: from the great I hope it works, but there there's
Speaker 1: no way to be sure. And that was former Philadelphia
Speaker 1: FED President Charles Plaster speaking with Bloomberg's Kathleen Hayes and
Speaker 1: Heidi Stroud wats. You can catch the full interview on
Speaker 1: Bloomberg dot com and on the Bloomberg terminals. Stay with
Speaker 1: us here on Bloomberg Daybreak. We're gonna continue getting reaction
Speaker 1: to the FED decision. As we await the Bank of England.
Speaker 1: Also big job cuts maybe coming to Twitter. We got
Speaker 1: top stories of the morning straight ahead here on Bloomberg Daybreak.
Speaker 1: Looking ahead to the market, open futures are pointing to
Speaker 1: more losses after the FED fueled route yesterday. SMP futures
Speaker 1: are down four points down, features down nineteen. Nastack future
Speaker 1: is lower by twenty two points. Tenure treasuries down seventeen
Speaker 1: thirty seconds for a yield of four point one seven.
Speaker 1: This is Bloomberg Bloomberg eleven three oh weather sunny, mid
Speaker 1: sixties today, will be in the upper sixties tomorrow, with
Speaker 1: more sunshine low seventies for the weekend by Sunday, chance
Speaker 1: for a shower. Right now fifty four in Central Park,
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety
Speaker 1: one to Boston, Bloomberg one six one to San Francisco,
Speaker 1: Bloomberg nine sixty to the country, Sirius XM to the
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Speaker 1: app and Bloomberg Radio dot Com. This is Bloomberg Daybreak
Speaker 1: and It's five thirty on Wall Street. Good morning. I'm
Speaker 1: Karen Moscow. I'm Nathan Hagar Bloomberg. Daybreak is brought to
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Speaker 1: to data the news you need to know at this shower.
Speaker 1: US futures are lower after a hawkish FED led to
Speaker 1: a Wall Street to sell off yesterday. As expected, the
Speaker 1: Central Bank raised interest rates seventy five basis points, but
Speaker 1: stocks sold off when Fed Chair J Powell made clear
Speaker 1: monetary tightening still has a ways to go. We still
Speaker 1: have some ways to go, and incoming data since our
Speaker 1: last meeting suggests that the ultimate level of interest rates
Speaker 1: will be higher than previously expected, and the move by J.
Speaker 1: Powell and the Fed lifts the benchmark to a three
Speaker 1: point seven five percent to four percent range from nearly zero.
Speaker 1: In March, reaction poured into the Fed's aggressive tonecare and
Speaker 1: eye capital Chief investment strategist Anastagia amar Rosa says, traders
Speaker 1: are left with an uncertain path ahead. Initially, the markets
Speaker 1: got what they wanted, which is it seems like we
Speaker 1: are going to slow the path of rating increases. But
Speaker 1: then in the same breath FT share power man and
Speaker 1: that we have ways to go before we actually can pause,
Speaker 1: and NATS was really unsettled the markets. The hope going
Speaker 1: into is that we can maybe start to see the
Speaker 1: beginning of the end of the tightening cycle. We cannot
Speaker 1: draw that conclusion right now. Anestaesia Marosa with Eye Capital
Speaker 1: says economic indicators show the chances of a recession or
Speaker 1: around fIF well. Former Philadelphia Fed President Charles plus Sir
Speaker 1: says the probability of the Fed achieving a soft landing
Speaker 1: maybe slimmer, very likely, and achieve a sort of somewhat
Speaker 1: soft landing, it's a very fine, you know, and it
Speaker 1: will take a lot of luck, not just a policy descinusion,
Speaker 1: but luck to achieve that. At this point. Former Philadelphia
Speaker 1: Fed President Charles plus Or says J. Powell should still
Speaker 1: consider another seventy five basis point Hi get next month's
Speaker 1: f O m C meeting. Monetary policy is also in
Speaker 1: focus in Europe this morning. Karen the Bank of England
Speaker 1: is expected to deliver its biggest rate increase in thirty
Speaker 1: three years. Oliver in Asia, Nathan China locked down the
Speaker 1: world's largest iPhone factory, and the Young Zoo areat Covid Spread.
Speaker 1: The lockdown is expected to last until next week. And
Speaker 1: other corporate news. This morning, Bloomberg News has learned Elon
Speaker 1: Musk plans to eliminate about half of Twitter's workforce. It's
Speaker 1: about thirty seven hundred jobs, and job cuts may also
Speaker 1: be on the way. At Morgan Stanley, Reuter's is reporting
Speaker 1: the financial firmost started layoffs globally in the coming weeks.
Speaker 1: Futures this morning lower SMP future is down three points
Speaker 1: and down. Futures down fourteen, NASDACK futures down sixteen, ten
Speaker 1: year Treasury down seventeen thirty seconds. He had four point
Speaker 1: one seven percent straight. I had your latest local headlines,
Speaker 1: plus a check a sports. This is Bloomberg. Thanks Karen.
Speaker 1: Thirty three on Wall Street, fifty three degrees in Central
Speaker 1: Park slow on the westbound l I E. This morning,
Speaker 1: Michael Barr has more on what's going on in New
Speaker 1: York and around the world. Michael, thank you very much. Nathan.
Speaker 1: The man who had already said wounded two Newark police
Speaker 1: officers as they attempted to question him about the previous shooting,
Speaker 1: was taken into custody yesterday. Kendall Howard, who's thirty, is
Speaker 1: charged with the attempted murder the two officers. State Attorney
Speaker 1: General Matt Platkin provided an update on the officers shot.
Speaker 1: I had the opportunity to visit with them last night.
Speaker 1: Thank god, they are recovering and will recover a g.
Speaker 1: Plantkin and authorities say one officer was shot in the
Speaker 1: leg and the other was shot in the neck. Tuesday,
Speaker 1: with just days to go before major midterm elections, President
Speaker 1: Joe Biden is imploring voters to save American democracy. Biden
Speaker 1: brought up ultra Maga Republicans, a reference to Donald Trump's
Speaker 1: make America Great against slogan, and mounting concerns over political violence.
Speaker 1: I believe the voices excusing are calling for violence and
Speaker 1: intimidation our distinct minority in America. But they're loud and
Speaker 1: they are determined. Last night's speech came a few days
Speaker 1: after a man seeking the kidnap house speaker Nancy Pelosi
Speaker 1: severely injured her husband Paul Pelosi in their San Francisco home.
Speaker 1: North Korea has fired at least three missiles that forced
Speaker 1: the Japanese government to issue evacuation alerts and temporarily halt trains.
Speaker 1: Today's launches were the latest in a series of North
Speaker 1: Korean weapons tests in recent months. Get your lottery tickets out.
Speaker 1: It's time to play America's favorite jackpot game. This is
Speaker 1: power Ball. The bad news is you didn't win the
Speaker 1: big one, But the good news is no one else
Speaker 1: did either. Nobody hit the magic life changing numbers. But
Speaker 1: when the one point to billion dollar Powerball jackpot that
Speaker 1: means the jackpot for the next Powerball drawing is estimated
Speaker 1: to be one point five billion dollars on Saturday, it
Speaker 1: is crazy. Nobody's wanted yet Mike has back in Longust
Speaker 1: last time. And by the way, the numbers. If you
Speaker 1: don't believe me with you eleven, five and sixty with
Speaker 1: a powerball three told you you didn't have Global news
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Take power by more than twenty seven hundred journalist
Speaker 1: analysts more than a hundred twenty countries. I'm Michael Barr.
Speaker 1: This is the broke. Michael Barb back. Okay, Michael, thank
Speaker 1: you on Wall Street time for the Bloomberg Sports that
Speaker 1: they brought you by Tri stayed out. He here's John
Speaker 1: stash Our act to day. That a World Series no
Speaker 1: hittor and it only happened once before Don Larson's perfect
Speaker 1: game against the Brooklyn Dodgers ninety six and Yankee Stadium
Speaker 1: pitchers don't throw complete games anymore, so it was a
Speaker 1: combined though hitter. It started with the Astros Christian Javier,
Speaker 1: it ended with Ryan Fresley, just like the combined no
Speaker 1: hit of the Astros ad at Yankee Stadium back in June.
Speaker 1: Astro's blank The Phillies five are nothing. The World Series
Speaker 1: is tied at two. Heading the game five tonight, the
Speaker 1: Houston manager Dusty Bacon that they have a great offensive
Speaker 1: club over there, and they've got a lot of energy
Speaker 1: in this ballpark, and uh so it's so it's a
Speaker 1: strange series. I mean, they hit five home runs yesterday
Speaker 1: and the no hits today. I mean, this is a
Speaker 1: day league game and the only other postseason no hitter
Speaker 1: was at that stadium in Philly by Roy Halliday against
Speaker 1: the Reds, who were managed then by Baker. At the Garden,
Speaker 1: Nicks were rolling led the Hawks by twenty three, but
Speaker 1: got outscored in the third quarter thirty two to Tanley
Speaker 1: had more turnovers than points. Atlanta one led by Demonte
Speaker 1: Murray's career high thirty six points. He had nine assists,
Speaker 1: six steals. Then Nets and Carrie Irving will both donate
Speaker 1: five hundred thousand dollars to anti hate causes. They released
Speaker 1: a statement with the Anti Defamation League and with Irving
Speaker 1: said he's learning and is willing to listen. Last week,
Speaker 1: he posted a link to an anti semitic video. Is
Speaker 1: Dan Snyder going to sell the Washington Commanders? Their fans
Speaker 1: are hoping and that's the case. He's hired Bank of
Speaker 1: America to help Cook consider all options. John Stash, they
Speaker 1: were Bloomberg Sports All right, John, thank you seven on
Speaker 1: Wall Street time for the Tri State Business Report with Bloomberg.
Speaker 1: Scott Carr New Jersey's Campbell Soup Company shaking things at
Speaker 1: the top cfo McQueen US and takes the top spot
Speaker 1: at the company's meet in beverage division, replacing Chris Foley,
Speaker 1: who takes the job of president of its snack division.
Speaker 1: Breeze Airways has added a couple of new NonStop flights
Speaker 1: out of Westchester County Airport, one to l A another
Speaker 1: this Arisota Bradenton, Florida. Guests on Breeze can choose from
Speaker 1: three price bundles offered as Nice, Nicer, and Nicest. Nicest
Speaker 1: gets a first class seat aboard an airbus A to twenty.
Speaker 1: Breeze now serves nine cities out of the airport, six
Speaker 1: of them NonStop flights. The Garden State hasn't yet fallen
Speaker 1: into a recession, according to data from the U. S
Speaker 1: Bureau of Economic Analysis, despite the state's economy shrinking by
Speaker 1: an annualized rate of one percent and this year's second quarter,
Speaker 1: New Jersey's first quarter GDP shrunk by a two point
Speaker 1: two percent annual rate, putting it thirty third in the
Speaker 1: nation and worse than most states in the region. That's
Speaker 1: the Bloomberg Tri State Business Report. I'm Scott Carran Scot
Speaker 1: on Wall Street Bloomberg Radios on the air from San
Speaker 1: Francisco to New York, London to Hong Kong. Let's check
Speaker 1: in with our global news team for some of the
Speaker 1: top stories heard on our three hundred affiliate radio stations
Speaker 1: around the world. I'm Steve Potascott K and Exit Los Angeles.
Speaker 1: We're talking about Roku's warning of slowly yards spending on
Speaker 1: its streaming platform. Um Corney Donahoe on ktr H in Houston.
Speaker 1: Marathon Oil is buying three billion dollars in natural gas
Speaker 1: assets from Ensign Natural Resources. I'm Gina Servetti in for
Speaker 1: w c c O in Minneapolis. I'm reporting that Minnesota
Speaker 1: ranks third on a list of states where its residents
Speaker 1: are prospering the most. I'm Steven Carol and Bloomberg d
Speaker 1: a B Digital Radio in London. We've from reporting on
Speaker 1: the market fallout from the fed's latest decision with a
Speaker 1: sell off on stocks and bonds. I'm Scott Carr on
Speaker 1: w d c H in Washington. I'm reporting media entrepreneur
Speaker 1: Byron Allen's now added to the list of possible future
Speaker 1: owners of the Washington Commander's football team and knows some
Speaker 1: of the stories are twenty s hundred Bloomberg jurnalists and
Speaker 1: analysts are reporting on this morning around the world. It
Speaker 1: is five thirty nine on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. This seditorial was written by
Speaker 1: the Bloomberg Editorial Board. Countries around the world have been
Speaker 1: experimenting with ways to ease the pain of high energy prices,
Speaker 1: with one solution getting increased attention windfall taxes. The idea
Speaker 1: is to demand a surcharge from companies that have benefited
Speaker 1: from high energy prices, then use the proceeds to aid
Speaker 1: ailing consumers or businesses. Russia's invasion of Ukraine created a
Speaker 1: boon for the energy industry. Surging profits have resulted in
Speaker 1: billions distributed in dividends or spent on share by backs,
Speaker 1: but the benefits of windfall taxes are very likely less
Speaker 1: than advertised. Such a tax evades all the difficult problems
Speaker 1: the Western world must confront as it tries to wean
Speaker 1: itself from Russian energy. A windfall tax is no solution
Speaker 1: at all. The seditorial was and by the Bloomberg Atitorial Board.
Speaker 1: For more Bloomberg opinion, please go to Bloomberg dot com,
Speaker 1: slash Opinion or O P I N go on the
Speaker 1: Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg
Speaker 1: opinion editorials every weekday. At this time. Terminal customers can
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Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business Out and at Bloomberg Quicktake,
Speaker 1: this is a Bloomberg Business Flash and I'm Karen Moscow
Speaker 1: and stocks in US dot Index futures are lower this
Speaker 1: morning after Jerome Powell said the Federal Reserve would raise
Speaker 1: interest rates more than previously anticipated, sapping risk appetite. We
Speaker 1: checked the markets for fifteen minutes throughout the trading day
Speaker 1: on Bloomberg SMP future is down about ten points down,
Speaker 1: futures down fifty two, NASDAG futures down thirty eight. The
Speaker 1: decks in Germany's down three quarters of a percent, ten
Speaker 1: year treasury down twenty two thirty seconds. He had four
Speaker 1: point one nine percent yield down, the two year four
Speaker 1: point seven two percent nine max Screwed oil is down
Speaker 1: one and a half percent down a dollar thirty five
Speaker 1: at eighty eight dollars sixty five cents of barrel comx
Speaker 1: goal down one point six percent or twenty seven dollars
Speaker 1: ten cents at sixteen ninety announce the euro point nine
Speaker 1: seven five one against the dollar British found one point
Speaker 1: one to five seven and the yen one forty eight
Speaker 1: points to five bit coins of six tents percent at
Speaker 1: twenty thousand, three hundred dollars. That's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael, thank you very much. Darren. There
Speaker 1: were three more missile tests by North Korea, including a
Speaker 1: suspect and intercontinental ballistic missile that reportedly failed in midflight.
Speaker 1: People in northern Japan awoke to sirens and were instructed
Speaker 1: to seek shelter. Christian Javier and the Astros bullpen combined
Speaker 1: for just a second no hitter in World Series history.
Speaker 1: Houston won Game four against the Phillies five zip to
Speaker 1: even the series at two games apiece. Speaking of ironneath
Speaker 1: Thursday Night Football, the undefeated Philadelphia Eagles take on the
Speaker 1: Houston Texas. Let's see the NFL's Washington commanders it could
Speaker 1: be for sale. Owner Dan and Daniel Snyders say that
Speaker 1: they've hired Bank of America Securities to consider potential transactions. NBA, Nixon,
Speaker 1: Celtics lost Wizards one Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than hundred journalists and analysts in more than a hundred
Speaker 1: twenty countries. Michael Barr, who didn't hit the powerball. This
Speaker 1: is Bloomberg NA. Thank you, Michael, five forty nine on
Speaker 1: Wall Street Live from the Bloomberg Interactive Broker Studios. This
Speaker 1: is Bloomberg Daybreak. Let's go from fancifult monetary policy to
Speaker 1: the actual stuff with the FED decision reaction. We're joined
Speaker 1: now by Sarah House, senior economist at Wells Fargo. Good
Speaker 1: to have you with us this morning after FED Day. Sarah,
Speaker 1: Will would really be curious actually to get your reaction
Speaker 1: to what we saw in the markets yesterday with the
Speaker 1: statement saying that they might wait for the effects of
Speaker 1: cumulative tightening to work their way through the economy, only
Speaker 1: for Chairman Pale to step to the lectern and say,
Speaker 1: maybe not so fast. Yes, so I think the the
Speaker 1: palse press conference is actually consistent with the statement in
Speaker 1: terms of signaling that they might be ready to slow
Speaker 1: down the pace, but he elaborated on the back that
Speaker 1: just because the bed is blowing down the pace of
Speaker 1: Titan does not mean that they're in any ways done.
Speaker 1: So I think what the markets were reacting to in
Speaker 1: that press conference was the fact that he made very
Speaker 1: clear that rates ultimately will likely need to go higher,
Speaker 1: and they also might have to stay higher than what
Speaker 1: the what the markets were anticipating going into the meeting.
Speaker 1: And I guess the question now for market participants, and
Speaker 1: I suppose for economists as well, is how much higher
Speaker 1: will rates go? What will that terminal rate be? If
Speaker 1: you changed your forecast based on what we heard from
Speaker 1: the chairman yesterday, and we haven't changed it yet, but
Speaker 1: I think the risks are certainly skewed higher, and I
Speaker 1: think they were even skewed higher going into the meeting.
Speaker 1: So if you show, for example, last Friday, another very
Speaker 1: strong outturn in real consumer spending at the same time
Speaker 1: that you are seeing demand for labor hold up in
Speaker 1: the pretty moderate slow down in the jobs market and
Speaker 1: hiring picture generally, and so I think from that picture
Speaker 1: that we saw that the FED still has more work
Speaker 1: to do, particularly given the stickiness of of inflation. So
Speaker 1: did anything change much after the statement, given that the
Speaker 1: markets have been sort of pricing in the idea that
Speaker 1: we could see slower interest rate hike increases in in
Speaker 1: coming meetings. The chairman even opened up the possibility that
Speaker 1: we could see it next month. Yes, I think that
Speaker 1: was in many always the primary focus of the meeting
Speaker 1: meeting is just trying to get a sense of, well,
Speaker 1: what's ahead, even at the at the next meeting. So
Speaker 1: of course the Feds moved so fast this year that
Speaker 1: even just trying to get a handle on what's that
Speaker 1: that very next meeting has has become a primary focus.
Speaker 1: But it's been important to not lose sight of where
Speaker 1: the Fed ultimately goes. So I think that's what was
Speaker 1: what Pal was having to balance um yesterday, And I
Speaker 1: think we saw at least when it comes to December
Speaker 1: and in a very strong case is building for the
Speaker 1: FED to downshift only a fifty basis point Hicks. So
Speaker 1: not only does it seem like the Feds changing their
Speaker 1: reaction function a little bit, so becoming less tied to
Speaker 1: what uh just a few data prints hit like, but
Speaker 1: trying to trying to incorporate a more holistic view of
Speaker 1: what they're seeing in the economy, um in areas like
Speaker 1: housing that reflects some of the bigger forces of tightening
Speaker 1: that we've seen, as well as accounting for just how
Speaker 1: much tightening they've already done and the lags with within
Speaker 1: monitor policy. What is the FED need to say to
Speaker 1: bring more conviction to that view for a fifty basis
Speaker 1: point increase next month. Well, I think you probably have
Speaker 1: to hear some more caution on the part of other
Speaker 1: side speakers. So we certainly saw Lale Brander device chair
Speaker 1: strike a cautionary note. She was mentioning the cumulative effects
Speaker 1: of titaning you need to be in consideration, you know,
Speaker 1: early in October esther George, who's traditionally been a hawk,
Speaker 1: has been a person who has been out there signaling that, look,
Speaker 1: we need to be a little bit more cautious with
Speaker 1: where we go from here. We've already done quite a
Speaker 1: lot and we want to be careful that we don't
Speaker 1: overdo it. Then we don't oversteer to use to use
Speaker 1: her words, but I think we have to see that
Speaker 1: that course grow a little bit louder at the same
Speaker 1: time that we see at least so a little bit
Speaker 1: of softening in some of the inflation prints. That so
Speaker 1: we're got to look at that next week, and I
Speaker 1: think there's there's a decent chance, but at least in
Speaker 1: the core rains we see at least a moderate step
Speaker 1: towards a slightly slightly slower core inflation. Only about thirty
Speaker 1: seconds left here, Sarah, do you think we'll see softness
Speaker 1: in the jobs market with the payrolls report coming out tomorrow.
Speaker 1: I think we'll see some moderation. So we're looking for
Speaker 1: a game of just a d that, you know, a
Speaker 1: pretty significant slowdown from what we saw even even last month,
Speaker 1: but also just been a year to date average of
Speaker 1: four hundred and twenty. But if you step back, that's
Speaker 1: that's so pretty sharp number when we think about just
Speaker 1: the overall way our supply and population dynamics of the
Speaker 1: United States. So moderating but still very strong. Thanks there
Speaker 1: as always, Sarah House, senior economists at Wells Fargo with
Speaker 1: us this morning, Karen Well, Nathan. It is five at
Speaker 1: days three on Wall Street and now a legal story
Speaker 1: we're watching this morning. A federal judge. Well, first of all,
Speaker 1: it's brought to you by American Arbitration Association. Business disputes
Speaker 1: are inevitable, resolve faster with the American Arbitration Association, the
Speaker 1: global leader in alternative dispute resolution for over ninety years.
Speaker 1: More at a dr dot org. Now, a federal judge
Speaker 1: has blocked Penguin Random Houses almost two point two billion
Speaker 1: dollar acquisition of rival book publisher Simon and Schuster, rulling
Speaker 1: at the purchase of the fourth largest US book publisher
Speaker 1: by the largest publisher with lesson competition in the market
Speaker 1: for publishing rights to anticipated top selling books. It's the
Speaker 1: first win for the Justice Department's Anti trust division after
Speaker 1: three losses in a row. For more Bloomberg stun Grosso
Speaker 1: speaks to anti trust law expert Harry First, a professor
Speaker 1: at ny U Law School. Anti trust is usually focused
Speaker 1: on harm to consumers, but the Justice Department's theory here
Speaker 1: was harmed to authors and authors earnings. Was this a
Speaker 1: novel approach? So this is the second interesting thing about
Speaker 1: the case. The first one was that they want The
Speaker 1: second interesting thing is the Justice Departments focused on, as
Speaker 1: they like to call it, on labor. So on workers,
Speaker 1: and this has been an important part of the Biden
Speaker 1: administration's political focus, that they want to do things to
Speaker 1: make workers incomes higher, and this case was positioned to
Speaker 1: focus on that. On workers. Now, when we think of workers,
Speaker 1: we think of, you know, people in the oil fields,
Speaker 1: people on manufacturing line. We don't usually think of Stephen King.
Speaker 1: So workers and million dollar advances, I don't know, but
Speaker 1: here it's authors. Now, from an economist point of view,
Speaker 1: and really also from a technically any trust point of view,
Speaker 1: workers or labor is another market, and any trust is
Speaker 1: concerned with competition and markets. So you want to have
Speaker 1: appropriate competition, not just for firms as they sell products,
Speaker 1: but firms as they buy products from their suppliers. Now
Speaker 1: the suppliers here are authors, which supply their talent, and
Speaker 1: for the markets to work right, you want competition, as
Speaker 1: they say, on both sides of the market. Is this
Speaker 1: a case really of there's been so much consolidation in
Speaker 1: the pub wishing industry for twenty years and taking it
Speaker 1: from five to four was just a step too far. Well,
Speaker 1: my answer would be sure, But under current law that's
Speaker 1: not enough. Judges will say, well, so tell me why
Speaker 1: four is not enough to be competition. So the government
Speaker 1: has to define a market and has to show some
Speaker 1: effect within a defined market. Now what's critical. The judge
Speaker 1: accepted the definition of a market that the Justice Department
Speaker 1: put forward, which is sort of an unusual market market
Speaker 1: for US publishing rights to anticipated top selling books, so
Speaker 1: exactly what books are those? Whatever it is, it's actually
Speaker 1: not the market for advances to all authors. So the
Speaker 1: judge accepted the notion that was put forward by the
Speaker 1: Justice Department's economists that this is a well enough define
Speaker 1: market in which you can show that putting these two
Speaker 1: firms together will result in lowering the price that they
Speaker 1: pay for the author's right and as Harry First, a
Speaker 1: professor at n y U Law School, speaking at the
Speaker 1: Bloomberg Student Grosso, catch more of that interview plus analysis
Speaker 1: of the latest legal news by subscribing to the Bloomberg
Speaker 1: Law Podcast or downloading the show at Bloomberg dot com
Speaker 1: slash podcasts. Attorneys can find exceptional legal research and business
Speaker 1: development tools at Bloomberg Law dot com and on the
Speaker 1: Bloomberg terminal at b Law Go. And Futures. This morning,
Speaker 1: they're lower SMP Futures down twelve points down futures down
Speaker 1: seventy two and Nasdag futures down still ahead. On Bloomberg
Speaker 1: day Break, we have a check on the business headlines
Speaker 1: and all the news you need to start your day.
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