1 00:00:03,000 --> 00:00:06,240 Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 2 00:00:06,320 --> 00:00:09,920 Speaker 1: day Break for Friday, October four two. Coming up, the 3 00:00:09,920 --> 00:00:13,840 Speaker 1: Shower Stocks rise. Following the historic rally on Wall Street, 4 00:00:14,120 --> 00:00:17,480 Speaker 1: Banker Niece kick off this morning, Speculation grows the UK 5 00:00:17,680 --> 00:00:21,160 Speaker 1: government will abandon its tax cut plan, and Twitter says 6 00:00:21,160 --> 00:00:24,919 Speaker 1: Elon Musk is being investigated over his attempted acquisition. The 7 00:00:25,040 --> 00:00:28,880 Speaker 1: January six panel has voted to subpoena former President Trump lost. 8 00:00:28,880 --> 00:00:31,600 Speaker 1: The shooting in the Rowley, North Carolina neighborhood has left 9 00:00:31,680 --> 00:00:35,760 Speaker 1: five dead. I'm Michael blomer More, I'm John stashowern Sports, 10 00:00:35,760 --> 00:00:38,440 Speaker 1: the Yankees and Guardians played game to this afternoon. Other 11 00:00:38,479 --> 00:00:40,920 Speaker 1: went for the Astros, the Rangers, one, the Devil's and 12 00:00:41,000 --> 00:00:46,960 Speaker 1: Islanders Long. That's all training head on Bloomberg day Break 13 00:00:47,320 --> 00:00:51,640 Speaker 1: on Bloomberg eleven three on New York, Bloomberg one, Washington, 14 00:00:51,760 --> 00:00:55,880 Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 15 00:00:55,880 --> 00:00:59,600 Speaker 1: San Francisco, Sirius x M one nine Team and around 16 00:00:59,640 --> 00:01:02,400 Speaker 1: the world. Old on Bloomberg Radio dot Com and via 17 00:01:02,440 --> 00:01:09,520 Speaker 1: The Bloomberg Business And Good Morning. I'm Tarin Moscow. I'm 18 00:01:09,600 --> 00:01:12,240 Speaker 1: Nathan Hagar. Bloomberg Day Break brought to you by se I. 19 00:01:12,240 --> 00:01:16,640 Speaker 1: Imagine your asset management firms operational infrastructure as a competitive advantage. 20 00:01:16,720 --> 00:01:19,000 Speaker 1: Let se I show you how at se I C 21 00:01:19,280 --> 00:01:22,280 Speaker 1: dot Com, slash I m S and US Stock Index 22 00:01:22,360 --> 00:01:24,920 Speaker 1: futures are lower. This morning. It is six o one 23 00:01:24,959 --> 00:01:26,920 Speaker 1: on Wall Street, and we check the markets every fifteen 24 00:01:26,920 --> 00:01:30,040 Speaker 1: minutes throughout the trading day. On Bloomberg, SMP futures down 25 00:01:30,040 --> 00:01:34,199 Speaker 1: seven points down, futures down nineteen, nowsday futures down forty three, 26 00:01:34,319 --> 00:01:36,560 Speaker 1: Nathan Karen. We enter this final trading day of the 27 00:01:36,560 --> 00:01:39,559 Speaker 1: week coming off a truly historic day after the SMP 28 00:01:39,680 --> 00:01:42,880 Speaker 1: fire fell two point four percent in reverse course and 29 00:01:42,880 --> 00:01:46,280 Speaker 1: closed up two point six percent. Bloomberg data going back 30 00:01:46,280 --> 00:01:49,880 Speaker 1: to show never before as the market experienced such extreme 31 00:01:49,880 --> 00:01:52,920 Speaker 1: readings both ways in one day. Dave don Ovidian is 32 00:01:53,000 --> 00:01:56,240 Speaker 1: chief investment officer at CIBC Private Wealth. Yeah, I don't 33 00:01:56,240 --> 00:01:59,640 Speaker 1: think a day like this signifies the market bottom. Obviously, 34 00:01:59,680 --> 00:02:02,320 Speaker 1: we had a a really strong market from mid June 35 00:02:02,320 --> 00:02:04,480 Speaker 1: to mid August and it was just a bear market rally. 36 00:02:04,520 --> 00:02:07,880 Speaker 1: But um, yeah, I think we're certainly closer to the 37 00:02:07,960 --> 00:02:10,040 Speaker 1: end than the beginning of this bull market they've done 38 00:02:10,040 --> 00:02:12,760 Speaker 1: o beating and at CIBC Private Wealth thinks triggered automated 39 00:02:12,760 --> 00:02:17,000 Speaker 1: buying helped fuel yesterday's turnaround, but the turnaround maybe sure lived. 40 00:02:17,040 --> 00:02:19,799 Speaker 1: Nathan Bank of America says stock markets in the US 41 00:02:19,840 --> 00:02:22,720 Speaker 1: economy will have to experience more pain before the FED 42 00:02:22,720 --> 00:02:26,480 Speaker 1: pivots away from aggressive policy strategies. At the bank's sake, quote, 43 00:02:26,480 --> 00:02:29,520 Speaker 1: it was a decent counter rally, but Low's won't be 44 00:02:29,560 --> 00:02:32,239 Speaker 1: reached until next year. They say more economic and market 45 00:02:32,240 --> 00:02:35,360 Speaker 1: pain will be necessary before the Fed backs down. Well, Karen, 46 00:02:35,360 --> 00:02:38,359 Speaker 1: the White House was grasping for upside after yesterday's inflation 47 00:02:38,400 --> 00:02:41,600 Speaker 1: reports saw core CPI rise to a forty year high. 48 00:02:41,800 --> 00:02:44,800 Speaker 1: President Biden discussed the reading with reporters in Los Angeles. 49 00:02:44,960 --> 00:02:47,679 Speaker 1: Americans are squeezed by the cost of the living. It's 50 00:02:47,680 --> 00:02:50,080 Speaker 1: been true for years, and folks don't need to be 51 00:02:50,160 --> 00:02:52,560 Speaker 1: a report to tell them there'll be a squeeze. Fighting 52 00:02:52,600 --> 00:02:54,800 Speaker 1: this battle every day is the key reason why I 53 00:02:54,880 --> 00:02:57,960 Speaker 1: ran for president, Nited states. However, President Biden did note 54 00:02:57,960 --> 00:03:01,240 Speaker 1: overall inflation was just two percent over the last three months. 55 00:03:01,240 --> 00:03:04,120 Speaker 1: He said, quote that's down from eleven percent over the 56 00:03:04,160 --> 00:03:07,080 Speaker 1: prior three months, well over the weekend. Nathan the President 57 00:03:07,120 --> 00:03:10,600 Speaker 1: conceded that a slight recession is possible, but one administration 58 00:03:10,639 --> 00:03:13,799 Speaker 1: official notes that it's not inevitable. We spoke to US 59 00:03:13,840 --> 00:03:17,600 Speaker 1: Commerce Secretary Gina Ramando. I talked to CEOs of the 60 00:03:17,600 --> 00:03:22,919 Speaker 1: biggest companies and the smallest companies every day in every industry. Yes, 61 00:03:22,960 --> 00:03:27,280 Speaker 1: they're anxious. Global markets are unstable. The war in Ukraine 62 00:03:27,600 --> 00:03:32,280 Speaker 1: obviously makes everything unstable. But they're also telling me customers 63 00:03:32,280 --> 00:03:36,200 Speaker 1: are buying. Consumers are buying, they are still hiring, American 64 00:03:36,240 --> 00:03:40,240 Speaker 1: companies are innovating. Commerce Secretary Genie Raimondo made the comments 65 00:03:40,320 --> 00:03:43,040 Speaker 1: in an interview on Bloomberg Radio and Television. Catch the 66 00:03:43,080 --> 00:03:46,880 Speaker 1: full conversation online at Bloomberg dot com. One of those CEOs, Karen, 67 00:03:46,920 --> 00:03:48,600 Speaker 1: appears to have a more tep but I'll look on 68 00:03:48,680 --> 00:03:52,640 Speaker 1: the economy. JP Morgan Chases Jamie Diamond discussed inflation and 69 00:03:52,680 --> 00:03:55,520 Speaker 1: the FED at a conference in Washington yesterday. I don't 70 00:03:55,520 --> 00:03:57,840 Speaker 1: know if it could be a soft landing. I don't 71 00:03:57,920 --> 00:04:02,320 Speaker 1: think so. But my mild session or tougher session. My 72 00:04:02,640 --> 00:04:05,960 Speaker 1: point in the tougher session, yeah, you expect the market. 73 00:04:06,680 --> 00:04:09,360 Speaker 1: I'm not gonna keep eyes across those three things. But 74 00:04:09,920 --> 00:04:11,720 Speaker 1: for all of us who have to worry about risk. You, 75 00:04:11,840 --> 00:04:14,240 Speaker 1: of course you should plan for those things. Jamie Diamond says, 76 00:04:14,240 --> 00:04:16,360 Speaker 1: his gut tells him the Federal Reserve will have to 77 00:04:16,440 --> 00:04:18,479 Speaker 1: raise rates higher than four and a half percent in 78 00:04:18,560 --> 00:04:21,960 Speaker 1: order to detain inflation. Well Diamond's bank is among several 79 00:04:22,080 --> 00:04:24,680 Speaker 1: schedule to kick off earning season today, Nathan. We get 80 00:04:24,680 --> 00:04:27,680 Speaker 1: a preview on that from Bloomberg's Jeff Bellinger. By the 81 00:04:27,680 --> 00:04:30,480 Speaker 1: time the markets opened this morning, investors will have heard 82 00:04:30,520 --> 00:04:34,360 Speaker 1: from JP Morgan, Chase, City Group, Morgan Stanley, and Wells Fargo. 83 00:04:34,720 --> 00:04:38,039 Speaker 1: Investors will be interested in the results from the last quarter, 84 00:04:38,200 --> 00:04:40,719 Speaker 1: but they'll likely be even more interested to hear what 85 00:04:40,800 --> 00:04:45,080 Speaker 1: banking executives expect going forward. Bloomberg says the big banks 86 00:04:45,080 --> 00:04:48,279 Speaker 1: will announce they're setting aside billions of dollars to protect 87 00:04:48,320 --> 00:04:52,040 Speaker 1: against expected loan losses as growing numbers of customers get 88 00:04:52,120 --> 00:04:56,560 Speaker 1: squeezed by inflation and high interest rates. Jeff Bellinger Bloomberg 89 00:04:56,640 --> 00:04:58,480 Speaker 1: day Break, All right, Jeff, thank you. We also get 90 00:04:58,480 --> 00:05:00,640 Speaker 1: more economic data to the jest this morning in the 91 00:05:00,680 --> 00:05:04,320 Speaker 1: former retail sales and consumer sentiment here with Morris Bloomberg's 92 00:05:04,320 --> 00:05:07,120 Speaker 1: and he Delt Judice. The prior report covering August showed 93 00:05:07,240 --> 00:05:11,400 Speaker 1: US retail sales rebounded from the July slump. Bloomberg Economics 94 00:05:11,400 --> 00:05:14,680 Speaker 1: as today's data will most likely indicate spending on consumer 95 00:05:14,720 --> 00:05:18,640 Speaker 1: goods move toward pre pandemic levels in September. That's taking 96 00:05:18,640 --> 00:05:22,560 Speaker 1: inflation into account. Also today, the University of Michigan issues 97 00:05:22,600 --> 00:05:26,240 Speaker 1: it's US consumer Sentiment index for early October, and Bloomberg 98 00:05:26,279 --> 00:05:30,120 Speaker 1: Economics anticipates another slugger's reading, the sentiment index at a 99 00:05:30,160 --> 00:05:32,840 Speaker 1: record low earlier in the year. Beneat Dealt Judaic s 100 00:05:32,839 --> 00:05:35,120 Speaker 1: Bloomberg Day Break, Right, Benny, thank you, and you're up 101 00:05:35,120 --> 00:05:37,480 Speaker 1: this morning. It looks like the UK government will abandon 102 00:05:37,520 --> 00:05:40,800 Speaker 1: its plans for massive tax cuts. Details are scarce, but 103 00:05:40,839 --> 00:05:43,960 Speaker 1: Bloomberg News has learned Prime Minister list trust will reverse 104 00:05:44,000 --> 00:05:47,480 Speaker 1: parts of our economic strategy. Begin more from Bloomberg's James 105 00:05:47,480 --> 00:05:50,760 Speaker 1: Wilcock in London. Good morning, James, Good morning, Karen Nathan 106 00:05:50,800 --> 00:05:54,200 Speaker 1: Decas Chancellor quasi class. That's the London, London un especially 107 00:05:54,240 --> 00:05:56,840 Speaker 1: cutting short his trip to Washington, UK ask that's the 108 00:05:56,880 --> 00:05:59,080 Speaker 1: stage a comeback on the news. It's trying to suspect 109 00:05:59,080 --> 00:06:01,679 Speaker 1: a youth sound is down the road Field, Antenia bonds 110 00:06:01,680 --> 00:06:03,680 Speaker 1: pledged to be a full presentment of the market opens 111 00:06:03,720 --> 00:06:05,280 Speaker 1: and it all comes at the back of England to 112 00:06:05,320 --> 00:06:08,760 Speaker 1: wrap up their emergency bond buying program. Late today in London, 113 00:06:08,839 --> 00:06:12,240 Speaker 1: James Wilcock, Bloomberg Daybreak, James, Thanks. In Corporate news this morning, 114 00:06:12,320 --> 00:06:15,920 Speaker 1: lawyers for Twitter say Elon Musk is under investigation over 115 00:06:16,000 --> 00:06:17,960 Speaker 1: his attempt to take the company private. We get the 116 00:06:17,960 --> 00:06:21,720 Speaker 1: details from Bloomberg's Doug Prisner. In April, the SEC sent 117 00:06:21,800 --> 00:06:24,680 Speaker 1: a query to Musko over how he initially disclosed his 118 00:06:24,760 --> 00:06:27,480 Speaker 1: nine percent stake in Twitter. He did so a week 119 00:06:27,600 --> 00:06:30,880 Speaker 1: later than regulations allow, and he used a filing typically 120 00:06:30,920 --> 00:06:34,679 Speaker 1: reserved for passive investors. Then in June, the SEC wanted 121 00:06:34,720 --> 00:06:38,239 Speaker 1: information on Musk, tweeting the deal cannot move forward until 122 00:06:38,279 --> 00:06:41,760 Speaker 1: he was given more information about spam and fraudulent accounts. 123 00:06:42,080 --> 00:06:45,000 Speaker 1: Now in a court filing in Delaware, Twitter's lawyers say 124 00:06:45,120 --> 00:06:49,880 Speaker 1: Musk has exchanged substantive correspondence with federal authorities as they 125 00:06:49,920 --> 00:06:52,680 Speaker 1: look into his conduct, and they say this game of 126 00:06:52,760 --> 00:06:55,520 Speaker 1: hide the ball must end in New York. I'm Doug Prisner, 127 00:06:55,560 --> 00:06:58,680 Speaker 1: Bloomberg Daybreak. All right, thank you, and Bloomberg Daybreak brought 128 00:06:58,680 --> 00:07:00,960 Speaker 1: to you by ib k R and Spin Advisers switched 129 00:07:01,000 --> 00:07:04,000 Speaker 1: to Interactive Brokers for lowest cost global trading and turnkey 130 00:07:04,040 --> 00:07:07,040 Speaker 1: custody solutions, no ticket charges and no conflicts of your 131 00:07:07,080 --> 00:07:11,000 Speaker 1: interests at ibkr dot com. Slash R, I, A, S ANDP. 132 00:07:11,160 --> 00:07:14,440 Speaker 1: Future is now little changed. Straight ahead your latest local 133 00:07:14,480 --> 00:07:18,760 Speaker 1: headlines plus the check of sports and this is Bloomberg. 134 00:07:22,960 --> 00:07:25,120 Speaker 1: Thank you. Carring six O seven on Wall Street fifty 135 00:07:25,120 --> 00:07:28,080 Speaker 1: three degrees in Central Park got a new crash northbound 136 00:07:28,080 --> 00:07:31,320 Speaker 1: Cross Island Parkway at Northern Boulevard. Details coming up in traffic. 137 00:07:31,360 --> 00:07:33,480 Speaker 1: First Michael Barr with what else is going on in 138 00:07:33,480 --> 00:07:35,520 Speaker 1: New York and around the world. Good morning, Michael, Good 139 00:07:35,520 --> 00:07:39,080 Speaker 1: morning Nathan. The final January six Committee hearing's theme was 140 00:07:39,120 --> 00:07:42,320 Speaker 1: that Donald Trump began the plan to stay in office 141 00:07:42,600 --> 00:07:47,200 Speaker 1: as early as July. Bloomberg's headboxter as the story to 142 00:07:47,360 --> 00:07:50,720 Speaker 1: remain no matter what the vote showed in November. Coachair 143 00:07:50,800 --> 00:07:54,280 Speaker 1: List Cheney says, what's left We must seek the testimony 144 00:07:54,480 --> 00:07:59,440 Speaker 1: under oath of January six. Central Player Donald Trump, followed 145 00:07:59,440 --> 00:08:02,680 Speaker 1: by a unit must vote to subpoena from the committee. Meanwhile, 146 00:08:02,680 --> 00:08:05,160 Speaker 1: the Supreme Court has refused to get involved in Trump's 147 00:08:05,160 --> 00:08:09,200 Speaker 1: request to return seized documents from our lago. It also 148 00:08:09,240 --> 00:08:13,000 Speaker 1: refused to reinstate a special master. A major victory for 149 00:08:13,120 --> 00:08:16,480 Speaker 1: the Department of Justice in San Francisco. I'm at Baxter 150 00:08:16,480 --> 00:08:20,520 Speaker 1: Bloomberg Gay Break. Connecticut Governor Lamant has ordered flags flown 151 00:08:20,520 --> 00:08:22,960 Speaker 1: at half staff in the state after three officers were 152 00:08:23,000 --> 00:08:25,360 Speaker 1: shot in the line of duty in Bristol. Two of 153 00:08:25,400 --> 00:08:28,800 Speaker 1: the officers are dead. Governor Lamont said there are too 154 00:08:28,880 --> 00:08:31,560 Speaker 1: many illegal guns and not enough cops on the streets. 155 00:08:31,840 --> 00:08:35,839 Speaker 1: I hope when you see your policeman woman on the 156 00:08:35,880 --> 00:08:37,400 Speaker 1: street corner, you go up and say thank you for 157 00:08:37,440 --> 00:08:39,720 Speaker 1: what you do. I hope you show a little respect 158 00:08:39,840 --> 00:08:43,839 Speaker 1: for the folks that are there, Governor Lamont. State police said, 159 00:08:43,880 --> 00:08:45,920 Speaker 1: and a release that the nine one on one called 160 00:08:46,000 --> 00:08:49,520 Speaker 1: Wednesday night about a dispute between two siblings appears to 161 00:08:49,640 --> 00:08:52,760 Speaker 1: have been a deliberate act to lure law enforcement to 162 00:08:52,840 --> 00:08:56,520 Speaker 1: the scene in Bristol. In North Carolina, Raleigh police say 163 00:08:56,520 --> 00:08:59,560 Speaker 1: a male juvenile is in the custody hours after a 164 00:08:59,600 --> 00:09:02,240 Speaker 1: masch dooting that left five people dead, including an off 165 00:09:02,320 --> 00:09:06,000 Speaker 1: duty police officer, in the neighborhood. Raleigh Mayor Mary Anne 166 00:09:06,000 --> 00:09:09,120 Speaker 1: Baldwin praise the responding officers, saying they put their lives 167 00:09:09,120 --> 00:09:11,760 Speaker 1: at a risk to protect the city. You know, you 168 00:09:11,800 --> 00:09:16,560 Speaker 1: pray that something like this will never happen here. It did, 169 00:09:17,400 --> 00:09:21,600 Speaker 1: and I want to thank all the officers who responded 170 00:09:22,000 --> 00:09:25,480 Speaker 1: in the way they did. Raleigh Mayor Baldwin. Police say 171 00:09:25,520 --> 00:09:28,640 Speaker 1: there's no word on a motive. North Korea has fired 172 00:09:28,760 --> 00:09:32,200 Speaker 1: yet another ballistic missile this launch game. As North Korea 173 00:09:32,280 --> 00:09:35,920 Speaker 1: also flew warplanes near the border with South Korea. Beyong 174 00:09:36,080 --> 00:09:39,120 Speaker 1: Yang says they're meant as a warning to Seoul and 175 00:09:39,240 --> 00:09:43,439 Speaker 1: the US about their joint military exercises. Global News twenty 176 00:09:43,440 --> 00:09:46,240 Speaker 1: four hours a day on air and on Bloomberg Quicktake, 177 00:09:46,440 --> 00:09:49,440 Speaker 1: powered by more than twenty seven hundred journalists and analysts 178 00:09:49,520 --> 00:09:53,679 Speaker 1: more than add twenty countries. I'm Michael Barr. This is Bloomberg, Nathan. 179 00:09:53,760 --> 00:10:00,640 Speaker 1: Thank you. Michael. Six o nine on Wall Street. Time 180 00:10:00,679 --> 00:10:03,679 Speaker 1: for the Bloomberg Sports Update with John sten Shower. All right, Nathan, 181 00:10:03,760 --> 00:10:06,880 Speaker 1: Yankees and Guardians two days off between games one and two, 182 00:10:06,920 --> 00:10:08,880 Speaker 1: but set to go at one o'clock at the stadium, 183 00:10:08,920 --> 00:10:11,680 Speaker 1: So unless there's another rain out, no more days off. 184 00:10:11,679 --> 00:10:14,200 Speaker 1: The rain was expected and Aaron Boone was asked before 185 00:10:14,400 --> 00:10:16,679 Speaker 1: and the effect of a postpone man and it would 186 00:10:16,679 --> 00:10:19,559 Speaker 1: probably affect the pitching rotation if he went five games 187 00:10:19,840 --> 00:10:24,079 Speaker 1: and he had to play four in a row. Sure, Um, 188 00:10:24,200 --> 00:10:27,520 Speaker 1: the lineup, no, I mean we play, that's what you 189 00:10:27,600 --> 00:10:29,959 Speaker 1: do is in baseball as you play every day. So 190 00:10:30,559 --> 00:10:34,959 Speaker 1: shouldn't affect that. Um, you know, that's more who we're 191 00:10:35,000 --> 00:10:37,720 Speaker 1: going up against, matchups, things like that. When today starts, 192 00:10:37,920 --> 00:10:41,040 Speaker 1: Est Cortez Shane Bieber for Cleveland, Houston's up to nothing. 193 00:10:41,040 --> 00:10:43,400 Speaker 1: In the other a l DS, the Astros had their 194 00:10:43,400 --> 00:10:45,760 Speaker 1: slugger you're Don Alvarez, the fact he hit the game 195 00:10:45,800 --> 00:10:47,600 Speaker 1: winning three run over in game one and he hit 196 00:10:47,640 --> 00:10:50,320 Speaker 1: the go ahead two run shots sixteing the game two 197 00:10:50,440 --> 00:10:53,079 Speaker 1: four two. Astros went over Seattle a couple of game 198 00:10:53,160 --> 00:10:55,920 Speaker 1: threes today tonight in the n LDS, both series are 199 00:10:55,920 --> 00:10:58,719 Speaker 1: tied at one week six underway in Chicago, Washington won 200 00:10:59,000 --> 00:11:01,319 Speaker 1: twelve to seven and in the four game Losings made 201 00:11:01,320 --> 00:11:04,360 Speaker 1: the only Commanders touchdown scored by a rookie running back 202 00:11:04,400 --> 00:11:06,920 Speaker 1: Brian Robinson, who has made a remarka will come back. 203 00:11:06,960 --> 00:11:09,720 Speaker 1: Two months ago, he was shot twice in the leg 204 00:11:10,080 --> 00:11:12,880 Speaker 1: in an attempt at robbery in DC. Jets and Giants 205 00:11:12,880 --> 00:11:15,800 Speaker 1: looking to keep their warning ways going. Sunday, the Jets 206 00:11:15,880 --> 00:11:17,959 Speaker 1: visit Green Bay, the Giants are home for Baltimore on 207 00:11:18,040 --> 00:11:21,280 Speaker 1: the Giants punter is now back home. The native Scott 208 00:11:21,400 --> 00:11:24,240 Speaker 1: Jamie Gillen was unable to fly home with the team 209 00:11:24,280 --> 00:11:26,840 Speaker 1: do a visa issue, so he had been staying at 210 00:11:26,840 --> 00:11:29,280 Speaker 1: an airbnb in London. Rangers already two and oh. They 211 00:11:29,280 --> 00:11:32,320 Speaker 1: won seven three at Minnesota. Chris Cryder fifty two goals 212 00:11:32,400 --> 00:11:34,559 Speaker 1: last year and he had the first and last Ranger goals. 213 00:11:34,720 --> 00:11:36,960 Speaker 1: Islander season opener at three one, Home lost the floor 214 00:11:37,040 --> 00:11:39,839 Speaker 1: to the Devil's lost five to at Philadelphia. John stash 215 00:11:39,960 --> 00:11:43,560 Speaker 1: were Bloomberg Sports, Nathan, thank you, John. We're watching futures 216 00:11:43,559 --> 00:11:45,840 Speaker 1: take a bit of a turn this morning, SMP futures 217 00:11:45,880 --> 00:11:48,360 Speaker 1: in that little change down futures have turned higher, up 218 00:11:48,400 --> 00:11:52,400 Speaker 1: forty two points. Nastack futures still lower down eighteen Tenure 219 00:11:52,440 --> 00:11:55,680 Speaker 1: treasuries now up ten thirty seconds yield three point nine 220 00:11:55,760 --> 00:11:59,040 Speaker 1: zero percent. As we await bank earnings. Will check in 221 00:11:59,120 --> 00:12:01,880 Speaker 1: the next on it with Ken Leon, director of Equity 222 00:12:01,920 --> 00:12:07,720 Speaker 1: Research at c f r A. This is Bloomberg Bloomberg 223 00:12:07,720 --> 00:12:09,720 Speaker 1: eleven three oh weather. We'll clear this afternoon, get up 224 00:12:09,760 --> 00:12:13,240 Speaker 1: to the upper sixties, sunny near seventy tomorrow, partly sunny 225 00:12:13,280 --> 00:12:16,480 Speaker 1: Sunday with highs in the upper sixties right now fifty 226 00:12:16,520 --> 00:12:24,280 Speaker 1: three degrees in Central Park. Markets headlines and breaking news 227 00:12:24,400 --> 00:12:26,959 Speaker 1: twenty four hours a day at Bloomberg dot Com, the 228 00:12:27,040 --> 00:12:31,160 Speaker 1: Bloomberg Business Outland at Bloomberg Quick Tape. He's a Bloomberg 229 00:12:31,240 --> 00:12:39,719 Speaker 1: Business Flash and I'm Karin Moscow. This updates brought to 230 00:12:39,760 --> 00:12:42,640 Speaker 1: you by SEI SI Managers don't get results that are 231 00:12:42,640 --> 00:12:44,600 Speaker 1: off the charts when their solutions are off the shelf. 232 00:12:44,679 --> 00:12:48,199 Speaker 1: Learn how seis operating platform can turn infrastructure into a 233 00:12:48,280 --> 00:12:52,280 Speaker 1: competitive advantage at sei C dot Com, slash Tech u 234 00:12:52,440 --> 00:12:55,520 Speaker 1: s Dock Index futures are well. Little change now as 235 00:12:55,559 --> 00:12:58,480 Speaker 1: investors away key earnings reports from Big Wall Street banks. 236 00:12:58,760 --> 00:13:02,199 Speaker 1: Bonds are advancing lad UK guilts, which benefit from speculation 237 00:13:02,280 --> 00:13:05,600 Speaker 1: that controversial tax cunning plans would be revised. We checked 238 00:13:05,600 --> 00:13:08,000 Speaker 1: the markets every fifteen minutes throughout the trading day on 239 00:13:08,120 --> 00:13:11,600 Speaker 1: Bloomberg s and P futures again, that'll change down. Futures 240 00:13:11,679 --> 00:13:14,719 Speaker 1: up twenty six, NAS day futures down thirty one the 241 00:13:14,880 --> 00:13:17,600 Speaker 1: docks in Germany is up eight tenths of uppercent ten 242 00:13:17,679 --> 00:13:20,000 Speaker 1: year treasury up eleven thirty seconds. You know, three point 243 00:13:20,040 --> 00:13:22,160 Speaker 1: eight nine percent they yield on the two year four 244 00:13:22,240 --> 00:13:25,120 Speaker 1: point four two percent. Nine X Screwed oil is down 245 00:13:25,200 --> 00:13:27,600 Speaker 1: nine ten percent or eighty one cents at eighty eight dollars. 246 00:13:27,600 --> 00:13:29,960 Speaker 1: Twenty nine cents of barrel co mix gold is down 247 00:13:30,040 --> 00:13:32,960 Speaker 1: one percent or sixteen dollars forty cents at sixteen sixty 248 00:13:33,040 --> 00:13:36,240 Speaker 1: fifty announced. The euro point nine seven three two against 249 00:13:36,280 --> 00:13:38,800 Speaker 1: the dollar, British found one point one to eight and 250 00:13:38,880 --> 00:13:41,640 Speaker 1: the end one forty seven point six five. Looking at 251 00:13:41,640 --> 00:13:43,600 Speaker 1: a bitcoin, it's up one and a half percent at 252 00:13:43,679 --> 00:13:47,240 Speaker 1: nineteen thousand, seven hundred dollars. That's a Bloomberg business flash. 253 00:13:47,320 --> 00:13:49,439 Speaker 1: Now here's Michael Barr with more on what's going on 254 00:13:49,559 --> 00:13:52,240 Speaker 1: around the world. Michael Karen, thank you very much. The 255 00:13:52,320 --> 00:13:56,280 Speaker 1: House January six Committee voted unanimously to supoena former President 256 00:13:56,320 --> 00:14:00,280 Speaker 1: Donald Trump or his testimony about the one Capital Often Act. 257 00:14:00,679 --> 00:14:03,480 Speaker 1: Earlier in the hearing, the panel presented new video of 258 00:14:03,520 --> 00:14:07,000 Speaker 1: how Speaker Nancy Pelosi and other congressional leaders pleading for help. 259 00:14:07,559 --> 00:14:12,120 Speaker 1: It also outlined Trump's multipart plan to overturn his twenty 260 00:14:12,160 --> 00:14:16,400 Speaker 1: election loss. President Joe Biden again criticized high US gas 261 00:14:16,520 --> 00:14:19,440 Speaker 1: prices and said he'd announced new actions to combat what 262 00:14:19,560 --> 00:14:22,880 Speaker 1: he described as a key driver of inflation. In baseball, 263 00:14:22,960 --> 00:14:25,360 Speaker 1: the Yankees will play the Guardians in game two of 264 00:14:25,640 --> 00:14:29,480 Speaker 1: their A LBS after last night's rain out. The Astros 265 00:14:29,600 --> 00:14:31,720 Speaker 1: lead two games to zip over the Mariners in their 266 00:14:31,840 --> 00:14:35,920 Speaker 1: A LBS after last night's four to win. Thursday Night Football, 267 00:14:35,960 --> 00:14:39,280 Speaker 1: the Commanders beat the Bears twelve seven. In the NHL, 268 00:14:39,360 --> 00:14:42,960 Speaker 1: the Rangers won, the Devil's Islanders and Capitals all lost. 269 00:14:43,320 --> 00:14:45,920 Speaker 1: Global News twenty four hours a day on air and 270 00:14:46,160 --> 00:14:49,880 Speaker 1: on Bloomberg Quicktake, powered by more than hundred journalists and 271 00:14:49,880 --> 00:14:52,840 Speaker 1: analysts more than a hundred twenty countries. Michael Blar, this 272 00:14:52,960 --> 00:14:55,400 Speaker 1: is Bloomberg, Nathan, I'm Michael. Thank you. It's almost six 273 00:14:55,440 --> 00:14:58,920 Speaker 1: twenty on Wall Street Line from the Bloomberg Interactive Brokers Studios. 274 00:14:59,000 --> 00:15:01,400 Speaker 1: This is Bloomberg Daybreak on what is about to be 275 00:15:01,560 --> 00:15:04,960 Speaker 1: a very busy day in bank earning. Season four of 276 00:15:05,080 --> 00:15:08,800 Speaker 1: the Big six Wall Street firms report before the opening bell. 277 00:15:09,320 --> 00:15:11,760 Speaker 1: Ahead of it. We're joined by Ken Leon, director of 278 00:15:11,800 --> 00:15:14,960 Speaker 1: Equity Research at c f R, A Ken. It's great 279 00:15:15,000 --> 00:15:17,520 Speaker 1: to speak with you on a bank earnings Friday. And 280 00:15:17,600 --> 00:15:21,120 Speaker 1: when we hear from the likes of JP Morgan's CEO 281 00:15:21,400 --> 00:15:25,800 Speaker 1: Jamie Diamond doubling down on his predictions for recession in 282 00:15:25,880 --> 00:15:29,400 Speaker 1: the next few months, I guess the question for investors 283 00:15:29,560 --> 00:15:35,640 Speaker 1: is how bad could these earnings be? Well, good morning, 284 00:15:35,720 --> 00:15:38,280 Speaker 1: and and third quarter results actually are going to be 285 00:15:38,560 --> 00:15:43,040 Speaker 1: fairly resilient, and we'll see strengths in certain areas. The 286 00:15:43,200 --> 00:15:47,400 Speaker 1: consumer will still be stable, um, and rising rates helps 287 00:15:47,680 --> 00:15:50,720 Speaker 1: UH in terms of earnings. But looking ahead, you're right, 288 00:15:51,360 --> 00:15:54,640 Speaker 1: it's really the world of worry is what will these 289 00:15:54,720 --> 00:15:59,040 Speaker 1: banks do UH in a recession next year and certainly 290 00:15:59,120 --> 00:16:01,440 Speaker 1: for the fourth cool it or we're not looking for 291 00:16:01,640 --> 00:16:05,800 Speaker 1: any up check in terms of investment banking. Volatility in 292 00:16:05,880 --> 00:16:08,840 Speaker 1: the markets has made trading an offset to a decline 293 00:16:08,880 --> 00:16:12,200 Speaker 1: in investment banking. But you get to main street and 294 00:16:12,320 --> 00:16:16,080 Speaker 1: the consumer and small business. UH, they're beginning to feel 295 00:16:16,160 --> 00:16:19,960 Speaker 1: some pain points. UM. We're not sure how much the 296 00:16:20,040 --> 00:16:23,640 Speaker 1: managements today will speak to what they see in their 297 00:16:23,680 --> 00:16:27,120 Speaker 1: crystal ball, but they'll say that the consumer is probably 298 00:16:27,240 --> 00:16:30,440 Speaker 1: resilient just based on the third quarter results. Now, we 299 00:16:30,520 --> 00:16:32,680 Speaker 1: did hear that just a couple of days ago from 300 00:16:32,720 --> 00:16:36,360 Speaker 1: Bank of America's CEO Brian moynihan. Where do you think 301 00:16:36,360 --> 00:16:41,000 Speaker 1: we're gonna see that sign of resiliency given that interest 302 00:16:41,120 --> 00:16:44,320 Speaker 1: rates are moving higher? Do you think that helps savers? 303 00:16:44,440 --> 00:16:48,560 Speaker 1: But in terms of getting loans or taking loans, that 304 00:16:48,640 --> 00:16:52,160 Speaker 1: could make things more difficult, couldn't it. It will, so 305 00:16:52,320 --> 00:16:55,480 Speaker 1: the lending activity will certainly begin to flow down, and 306 00:16:55,640 --> 00:16:59,680 Speaker 1: certainly for respect and UH, that will really reduce the 307 00:16:59,760 --> 00:17:03,680 Speaker 1: full pocity. So so for banks who can charge more 308 00:17:03,800 --> 00:17:08,160 Speaker 1: with rising rates, it's the volume decline. Then it's kind 309 00:17:08,160 --> 00:17:11,480 Speaker 1: of like an offset. So it's not a win win situation. 310 00:17:12,160 --> 00:17:15,040 Speaker 1: And that's kind of the environment ahead. You just don't 311 00:17:15,119 --> 00:17:19,720 Speaker 1: have a great scenario in terms of the economy that's 312 00:17:19,760 --> 00:17:23,639 Speaker 1: going to propel bank earnings higher next year. One of 313 00:17:23,680 --> 00:17:26,560 Speaker 1: the reasons why the stocks have been so low. But 314 00:17:26,680 --> 00:17:31,240 Speaker 1: the banks do have a fortress balacy, as Damie diamond says, 315 00:17:31,880 --> 00:17:35,160 Speaker 1: UM they're well capitalized, but regulators are going to make 316 00:17:35,200 --> 00:17:39,960 Speaker 1: sure that the capital buffers are big enough in case 317 00:17:40,040 --> 00:17:43,880 Speaker 1: there's any unexpected punch. We've seen a lot of news, 318 00:17:43,920 --> 00:17:48,680 Speaker 1: whether it's the Bank of England credits with UM blending 319 00:17:48,840 --> 00:17:54,439 Speaker 1: even into China's construction residential market. You know, there's always 320 00:17:54,560 --> 00:17:57,439 Speaker 1: lots of worries, but right now the bank's balencyats are 321 00:17:57,600 --> 00:18:01,360 Speaker 1: very strong and can really endure any damper next year. 322 00:18:01,760 --> 00:18:04,080 Speaker 1: Are you thinking that that strengthen the balance sheets is 323 00:18:04,119 --> 00:18:07,800 Speaker 1: going to translate into even further provisions for loan losses. 324 00:18:07,840 --> 00:18:12,960 Speaker 1: We've seen billions of dollars on that score. Well, we'll 325 00:18:13,000 --> 00:18:16,120 Speaker 1: probably say some of the banks book anywhere from five 326 00:18:16,600 --> 00:18:19,040 Speaker 1: million to a billion to begin to build a cushion 327 00:18:19,160 --> 00:18:24,600 Speaker 1: or a reserve for consumer credit card losses maybe next year. 328 00:18:25,040 --> 00:18:28,120 Speaker 1: We have not yet seen on the commercial industrial loan 329 00:18:28,280 --> 00:18:32,239 Speaker 1: book any distressed industries, and that's been a run rate 330 00:18:32,359 --> 00:18:35,720 Speaker 1: products for the last five years or so where we 331 00:18:35,880 --> 00:18:40,119 Speaker 1: never really focus on a distress industry. To overall, the 332 00:18:40,160 --> 00:18:44,080 Speaker 1: credit situation actually looks good. But one important thing I 333 00:18:44,160 --> 00:18:47,439 Speaker 1: think for for listeners here is that the banks always 334 00:18:47,560 --> 00:18:51,800 Speaker 1: lend to the best bars, including consumers with high psycho scores, 335 00:18:52,400 --> 00:18:55,120 Speaker 1: and what happens with the saddlebanks might be the first 336 00:18:55,280 --> 00:18:59,719 Speaker 1: cracks that we see what a weakening consumer interesting. Ken 337 00:18:59,840 --> 00:19:02,119 Speaker 1: Ley on great to get your thoughts as we await 338 00:19:02,280 --> 00:19:06,320 Speaker 1: those earnings. Starting with JP Morgan and Wells Fargo. Uh, 339 00:19:06,400 --> 00:19:08,720 Speaker 1: then we'll hear from Morgan Stanley and City Group Oll 340 00:19:08,840 --> 00:19:11,040 Speaker 1: cap things off for us as the first four of 341 00:19:11,080 --> 00:19:14,359 Speaker 1: the Big six report just today, and ken Leon is 342 00:19:14,400 --> 00:19:17,639 Speaker 1: going to be with us throughout this morning as those 343 00:19:17,840 --> 00:19:21,320 Speaker 1: results come in. Ken leyon, director of Equity Research at 344 00:19:21,400 --> 00:19:23,880 Speaker 1: CF are a part of our coverage of bank earnings 345 00:19:24,040 --> 00:19:27,000 Speaker 1: Friday this morning, So check back with Bloomberg Radio and 346 00:19:27,119 --> 00:19:30,879 Speaker 1: Bloomberg Television as we keep things going here with the 347 00:19:30,960 --> 00:19:35,200 Speaker 1: banks reporting kicking off third quarter earning season. Looking ahead 348 00:19:35,240 --> 00:19:38,680 Speaker 1: to the market open this morning, Uh, some churn in 349 00:19:38,800 --> 00:19:42,040 Speaker 1: the futures. SMP futures are now higher by three points 350 00:19:42,160 --> 00:19:45,480 Speaker 1: down futures up sixties seven NASDAC future is still in 351 00:19:45,520 --> 00:19:47,760 Speaker 1: the red, but not by much, now down seven points. 352 00:19:47,840 --> 00:19:51,200 Speaker 1: Tenure Treasury is up twelve thirty seconds, yield three point 353 00:19:51,280 --> 00:19:54,080 Speaker 1: eight nine percent, yield on the two year four point 354 00:19:54,160 --> 00:19:57,199 Speaker 1: four one percent. British Pound trading at one point one 355 00:19:57,280 --> 00:20:01,040 Speaker 1: to six eight on reports UK Time Minister Liz Trust 356 00:20:01,160 --> 00:20:05,040 Speaker 1: may reverse some of her mini budget. This is Bloomberg 357 00:20:06,920 --> 00:20:09,640 Speaker 1: Bloomberg eleven three oh Weather clearing this afternoon with highs 358 00:20:09,640 --> 00:20:12,320 Speaker 1: in the upper sixties, will be sunny tomorrow, high near 359 00:20:12,400 --> 00:20:16,080 Speaker 1: seventy upper sixties once again on a partly sunny Sunday. 360 00:20:16,359 --> 00:20:22,880 Speaker 1: Right now, it's fifty four degrees in Central Park. Broadcasting 361 00:20:23,000 --> 00:20:26,680 Speaker 1: live from the Bloomberg Interactive Broker Studio in New York. 362 00:20:26,800 --> 00:20:30,639 Speaker 1: Bloomberg E Living Free to Washington, d C. Bloomberg On 363 00:20:30,880 --> 00:20:34,080 Speaker 1: to Boston, Bloomberg one O six one to San Francisco, 364 00:20:34,200 --> 00:20:37,600 Speaker 1: Bloomberg NOME sixteen to the Country Sirius XM Gentle one 365 00:20:37,720 --> 00:20:40,800 Speaker 1: nineteen and around the globe the Bloomberg Business Act and 366 00:20:40,880 --> 00:20:50,560 Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak six thirty 367 00:20:50,600 --> 00:20:52,959 Speaker 1: on Wall Street. Good morning, I'm Nathan Hagar and I'm 368 00:20:53,040 --> 00:20:55,399 Speaker 1: Karen Moscow. We are just about three hours away from 369 00:20:55,400 --> 00:20:57,440 Speaker 1: the open of US trading. Time to the five Things 370 00:20:57,640 --> 00:20:59,560 Speaker 1: you need to Notice start your day. Brought to you 371 00:20:59,720 --> 00:21:03,800 Speaker 1: by Interactive Brokers. Interactive Brokers charges margin loan rates from 372 00:21:03,840 --> 00:21:05,840 Speaker 1: three point five eight percent to four point five eight 373 00:21:05,920 --> 00:21:08,520 Speaker 1: percent rate subject to change. Learn more at i dk 374 00:21:08,720 --> 00:21:12,080 Speaker 1: R dot com slash timpare. First, we enter the week's 375 00:21:12,119 --> 00:21:15,359 Speaker 1: final trading session, coming off a volatile day. The S 376 00:21:15,440 --> 00:21:19,439 Speaker 1: and P fell two point four percent after yesterday's CPI reading, 377 00:21:19,560 --> 00:21:23,520 Speaker 1: only to close up two point six percent, Lori Calvasino's 378 00:21:23,520 --> 00:21:26,960 Speaker 1: head of US equity strategy at RBC Capital Markets, you 379 00:21:27,080 --> 00:21:29,399 Speaker 1: have to really look stock by stocks, sector by sector, 380 00:21:29,480 --> 00:21:31,320 Speaker 1: different parts of the market, figure out where you think 381 00:21:31,359 --> 00:21:33,240 Speaker 1: most of the bad news is baked and where you 382 00:21:33,280 --> 00:21:35,240 Speaker 1: want to be for the longer term, and start layering 383 00:21:35,280 --> 00:21:37,200 Speaker 1: in and it may go down more before it goes 384 00:21:37,280 --> 00:21:41,159 Speaker 1: back up. Lori Calvasino with RBC says, we likely have 385 00:21:41,320 --> 00:21:44,440 Speaker 1: not seen a bottom yet and yesterday's turnaround maybe short 386 00:21:44,480 --> 00:21:46,440 Speaker 1: lived here. And that's according to Bank of America. That 387 00:21:46,520 --> 00:21:48,960 Speaker 1: firm strategists say stock markets in the U s economy 388 00:21:49,000 --> 00:21:51,800 Speaker 1: will have to experience more pain before the Fed pivots 389 00:21:51,840 --> 00:21:54,440 Speaker 1: away from aggressive tightening. They don't expect the bottom until 390 00:21:54,480 --> 00:21:57,920 Speaker 1: next year. The White House. Meantime, Nathan was grasping for 391 00:21:58,160 --> 00:22:00,920 Speaker 1: upside after US inflation rose to a forty year high 392 00:22:01,040 --> 00:22:04,160 Speaker 1: last month. President Biden spoke to reporters in Los Angeles. 393 00:22:04,440 --> 00:22:06,760 Speaker 1: We also need to make more progress bringing down the 394 00:22:06,800 --> 00:22:10,800 Speaker 1: prices across the board. That's why I just couldn't disagree 395 00:22:10,840 --> 00:22:13,920 Speaker 1: more with my Republican friends who say the biggest problem 396 00:22:14,000 --> 00:22:17,359 Speaker 1: our economy right now is it working. Folks are making 397 00:22:17,480 --> 00:22:20,800 Speaker 1: too much money. President Biden also says too many Americans 398 00:22:20,880 --> 00:22:23,480 Speaker 1: are being squeezed by the current cost of living. Okay, 399 00:22:23,560 --> 00:22:26,200 Speaker 1: Let's saw corporate earnings now, Karen JP, Morgan's City Group, 400 00:22:26,200 --> 00:22:28,800 Speaker 1: Morgan Stanley, and Wells Fargo all report before the market 401 00:22:28,880 --> 00:22:31,280 Speaker 1: opens today. Banks are expected to post the biggest profit 402 00:22:31,359 --> 00:22:34,320 Speaker 1: decline of any sector this quarter as analysts turns sour 403 00:22:34,440 --> 00:22:36,800 Speaker 1: on the outlook for financials. Will also be watching for 404 00:22:36,840 --> 00:22:39,360 Speaker 1: how much cash firms are setting aside for potentially bad 405 00:22:39,440 --> 00:22:42,320 Speaker 1: loans and turning overseas Nathan, it looks like the UK 406 00:22:42,480 --> 00:22:45,240 Speaker 1: government will abandon its plans for a massive tax CONTs. 407 00:22:45,320 --> 00:22:48,679 Speaker 1: Bloomberg News has learned Prime Minister List Trust will reverse 408 00:22:48,760 --> 00:22:51,240 Speaker 1: parts of our economic strategy. As the Bank of England 409 00:22:51,359 --> 00:22:54,639 Speaker 1: ends its emergency bond buying program today, we spoke with 410 00:22:54,720 --> 00:22:57,520 Speaker 1: former bo E member Martin Wheeley about the central bank 411 00:22:57,800 --> 00:23:01,359 Speaker 1: putting pressure on the government. Drew Bailey has given some 412 00:23:01,600 --> 00:23:04,639 Speaker 1: thought to the question of what help might be needed 413 00:23:04,760 --> 00:23:08,560 Speaker 1: next week and in what circumstances that could probably be 414 00:23:08,720 --> 00:23:14,159 Speaker 1: done without continuing the current steam in operation, and a 415 00:23:14,240 --> 00:23:17,040 Speaker 1: former Bank of England member, Martin Wheeley says reversing the 416 00:23:17,119 --> 00:23:20,639 Speaker 1: plan for massive tax cuts would restore the UK government's credibility. 417 00:23:20,880 --> 00:23:24,240 Speaker 1: According to the Telegraph, Trust will instead announce an increase 418 00:23:24,320 --> 00:23:27,720 Speaker 1: in corporate taxes to a rate of We are watching 419 00:23:27,760 --> 00:23:30,520 Speaker 1: his headline across the Bloomberg with the Times reporting that 420 00:23:30,880 --> 00:23:34,560 Speaker 1: Cortang is being sacked as chancellor. And again that's being 421 00:23:34,600 --> 00:23:40,919 Speaker 1: reported by the Times. Okay, Karen, Thanks, six thirty three 422 00:23:40,960 --> 00:23:43,640 Speaker 1: Now on Wall Street where fifty four degrees in Central 423 00:23:43,720 --> 00:23:46,320 Speaker 1: Park and Michael Barr has war on what's going on 424 00:23:46,480 --> 00:23:48,840 Speaker 1: in New York and around the world. Michael, good morning, 425 00:23:48,880 --> 00:23:52,240 Speaker 1: Good morning, Nathan. The House committee investigating last year's attack 426 00:23:52,359 --> 00:23:55,920 Speaker 1: on the US Capitol voted to subpoena Donald Trump. The 427 00:23:55,960 --> 00:23:59,159 Speaker 1: committee and a unanimous vote, agreed to demand documents and 428 00:23:59,320 --> 00:24:03,119 Speaker 1: testimony Trump about his role in the January sixth attack. 429 00:24:03,440 --> 00:24:07,639 Speaker 1: Committee chairman Benny Thompson, he is the one person at 430 00:24:07,720 --> 00:24:11,720 Speaker 1: the center of the story of what happened on January six, 431 00:24:12,680 --> 00:24:15,359 Speaker 1: so you want to hear from him. In a post 432 00:24:15,480 --> 00:24:18,880 Speaker 1: on his Truth social platform overnight, Trump said, I will 433 00:24:18,880 --> 00:24:22,080 Speaker 1: be putting out my response to the unselect committee of 434 00:24:22,160 --> 00:24:25,639 Speaker 1: political hacks and thugs later this morning. The U s. 435 00:24:25,680 --> 00:24:28,960 Speaker 1: Supreme Court handed former President Donald Trump a loss in 436 00:24:29,119 --> 00:24:32,080 Speaker 1: his fight over records the FBI seas from his Mara 437 00:24:32,200 --> 00:24:35,359 Speaker 1: lago of state. The High Court refused to intervene and 438 00:24:35,560 --> 00:24:38,800 Speaker 1: reinstate a special master's authority to review a set of 439 00:24:38,920 --> 00:24:42,840 Speaker 1: key documents with classified markings. Authorities in Connecticut say to 440 00:24:43,000 --> 00:24:46,360 Speaker 1: Bristol police officers who was shot dead had apparently been 441 00:24:46,440 --> 00:24:51,000 Speaker 1: drawn into an ambush my emergency call about possible domestic violence. 442 00:24:51,280 --> 00:24:54,239 Speaker 1: The third officer was wounded in the gunfire. Late Wednesday night, 443 00:24:54,600 --> 00:24:58,000 Speaker 1: Governor Ned Lamott said there are too many illegal guns 444 00:24:58,040 --> 00:25:01,040 Speaker 1: and not enough cops on the streets. Just a reminder 445 00:25:01,640 --> 00:25:03,920 Speaker 1: what the men in blue, men and women in blue 446 00:25:04,200 --> 00:25:06,520 Speaker 1: do every day on our behalf to keep us safe 447 00:25:06,640 --> 00:25:09,760 Speaker 1: and the risk they take. Governor Lamont ordered all us 448 00:25:09,920 --> 00:25:15,040 Speaker 1: and stayed flags lowered two half staff. A shooting opened fire. 449 00:25:15,200 --> 00:25:17,879 Speaker 1: You know. A shooter opened fire along a walking trail 450 00:25:18,000 --> 00:25:21,280 Speaker 1: and a rally, North Carolina neighborhood, killing an off duty 451 00:25:21,320 --> 00:25:24,960 Speaker 1: police officer and four others. Police said the suspect was arrested. 452 00:25:25,200 --> 00:25:31,119 Speaker 1: North Carolina Governor Roy Cooper, this is a senseless, horrific, 453 00:25:32,560 --> 00:25:39,479 Speaker 1: an infuriating active violence that has been committed. Authority has 454 00:25:39,480 --> 00:25:42,640 Speaker 1: been only described the suspected shooter as a white male juvenile. 455 00:25:43,119 --> 00:25:45,960 Speaker 1: A Florida jury rejected the death penalty for the person 456 00:25:46,080 --> 00:25:49,800 Speaker 1: responsible for the teen Parkland school shooting that left seventeen 457 00:25:49,880 --> 00:25:54,040 Speaker 1: students and staff dead. The jury, who needed a unanimous 458 00:25:54,160 --> 00:25:57,640 Speaker 1: vote for capital punishment, instead recommended a sentence of life 459 00:25:57,680 --> 00:26:00,800 Speaker 1: without parole. Many family members of the vitims were stunned. 460 00:26:01,000 --> 00:26:03,879 Speaker 1: Patricia Oliver's son Joachin, was shot in the head by 461 00:26:03,920 --> 00:26:06,840 Speaker 1: Cruz and says her son will not get justice. The 462 00:26:06,960 --> 00:26:09,200 Speaker 1: only one who got the way to get out of 463 00:26:09,560 --> 00:26:14,160 Speaker 1: this was the defendant. The jury's foreman says, three voted 464 00:26:14,160 --> 00:26:16,960 Speaker 1: against the death penalty. Global nemes twenty four hours a 465 00:26:17,040 --> 00:26:19,439 Speaker 1: day on air and on Bloomberg Quicktake, powered by more 466 00:26:19,480 --> 00:26:21,840 Speaker 1: than seven hundred journalists and analysts more than a hundred 467 00:26:21,840 --> 00:26:24,920 Speaker 1: twenty countries. Michael bar this is Bloomberg, Navid, Michael thanks 468 00:26:29,480 --> 00:26:31,919 Speaker 1: almost six thirty six On Wall Street. John Stanshower has 469 00:26:31,960 --> 00:26:34,800 Speaker 1: the Bloomberg Sports updates, makes Nathan Day Baseball in the 470 00:26:34,880 --> 00:26:37,800 Speaker 1: Bronx one o'clock start, Yankees Guardians Game two, and Esta 471 00:26:37,840 --> 00:26:40,159 Speaker 1: Cortez and Shane Bieber. Last night's rain out means no 472 00:26:40,280 --> 00:26:43,040 Speaker 1: more off days in the series. Astros and Maritors played 473 00:26:43,119 --> 00:26:45,560 Speaker 1: Game two and Houston Seattle, who blew up four run 474 00:26:45,680 --> 00:26:48,080 Speaker 1: lead in Game one, had a lead in the sixth 475 00:26:48,160 --> 00:26:54,720 Speaker 1: Nae won albats punish just want good five and the 476 00:26:54,880 --> 00:27:01,639 Speaker 1: Langius Crawford Foxes pretty too. You're not Baby Yammy. Albert 477 00:27:01,640 --> 00:27:03,320 Speaker 1: has had the walk off three run shot to what 478 00:27:03,400 --> 00:27:05,000 Speaker 1: the opener, and the Astros won forward it too. They 479 00:27:05,080 --> 00:27:07,200 Speaker 1: leave the series to nothing. Game three is tomorrow will 480 00:27:07,200 --> 00:27:10,680 Speaker 1: be the first postseason game in Seattle in twenty one years. 481 00:27:10,760 --> 00:27:13,920 Speaker 1: This afternoon is the first one in Philadelphia in eleven years. 482 00:27:14,000 --> 00:27:16,240 Speaker 1: Phillias and Braves. They're tied to one, so the Dodgers 483 00:27:16,280 --> 00:27:19,280 Speaker 1: and Padres. They played tonight in San Diego. The day 484 00:27:19,359 --> 00:27:23,040 Speaker 1: began for the Washington Commanders with an explosive ESPN report 485 00:27:23,119 --> 00:27:26,320 Speaker 1: the team's owner Dan Snyder has not been forced out 486 00:27:26,400 --> 00:27:29,320 Speaker 1: by fellow owners because he has dirt on several of 487 00:27:29,400 --> 00:27:31,919 Speaker 1: them and on Commissioner Roger Goodell, and that he can 488 00:27:32,000 --> 00:27:34,720 Speaker 1: quote blow up the NFL if they try to force 489 00:27:34,800 --> 00:27:37,119 Speaker 1: them out. Snyder has already been fined and suspended for 490 00:27:37,200 --> 00:27:39,959 Speaker 1: his actions as team owner. The Commanders then played their 491 00:27:40,040 --> 00:27:42,280 Speaker 1: Thursday night game in Chicago. They held on to win 492 00:27:42,400 --> 00:27:45,080 Speaker 1: twelve to seven. The Bears had a first and goal 493 00:27:45,160 --> 00:27:47,600 Speaker 1: at the Washington five in the final minute, but couldn't score. 494 00:27:47,600 --> 00:27:49,879 Speaker 1: Both teams are two and four. The Rangers are two 495 00:27:49,920 --> 00:27:52,320 Speaker 1: and oh seven. Three round in Minnesota, three goals in 496 00:27:52,359 --> 00:27:54,320 Speaker 1: the first period, three more than the third. Chris Cryer 497 00:27:54,359 --> 00:27:57,280 Speaker 1: scored twice or Timmy pannerin a goal free assists. Rangers 498 00:27:57,320 --> 00:27:59,920 Speaker 1: play again tonight in Winnipeg. The Islander opener was a 499 00:28:00,040 --> 00:28:02,720 Speaker 1: three one home lost to Florida Devils. Gave up four 500 00:28:02,760 --> 00:28:05,760 Speaker 1: Street goals, lost five to at Philadelphia Nicks and Nets 501 00:28:05,800 --> 00:28:09,200 Speaker 1: of their preseason finale. Attendant John Stash went Bloomberg Sports 502 00:28:09,280 --> 00:28:11,520 Speaker 1: Nathan all Right, John, thank you to six thirty seven 503 00:28:11,600 --> 00:28:13,159 Speaker 1: on Wall Street on what is about to be a 504 00:28:13,359 --> 00:28:16,760 Speaker 1: very busy morning for Allison Williams, senior analysts for Global 505 00:28:16,840 --> 00:28:21,040 Speaker 1: investment banks at Bloomberg Intelligence, awaiting the first four of 506 00:28:21,119 --> 00:28:24,240 Speaker 1: the big six Wall Street firms to report earnings before 507 00:28:24,280 --> 00:28:27,320 Speaker 1: the opening bell. Allison's with us now starting off with 508 00:28:27,560 --> 00:28:30,880 Speaker 1: JP Morgan. Of course, Allison, let's go through these banks 509 00:28:30,960 --> 00:28:32,720 Speaker 1: one by one. What are you looking for? At JPM. 510 00:28:33,880 --> 00:28:36,720 Speaker 1: We're looking for a very strong net interest income growth 511 00:28:36,800 --> 00:28:39,880 Speaker 1: at all the banks, and we do think that banks 512 00:28:39,920 --> 00:28:43,400 Speaker 1: such as JP Morgan and City Group, could UM increase 513 00:28:43,400 --> 00:28:47,920 Speaker 1: their guide for the full year two UM. I don't 514 00:28:47,920 --> 00:28:50,080 Speaker 1: think that's the focus though. I think the focus is 515 00:28:50,160 --> 00:28:52,479 Speaker 1: really what's going to be happening with provisions. What can 516 00:28:52,560 --> 00:28:55,760 Speaker 1: provisions tell us about how the banks are thinking about 517 00:28:56,120 --> 00:29:00,280 Speaker 1: in terms of economic risk? For three, do you think 518 00:29:00,280 --> 00:29:03,840 Speaker 1: a resiliency for the consumer might be something to keep 519 00:29:03,960 --> 00:29:07,400 Speaker 1: the banks resilient at least for this quarter? I do 520 00:29:07,600 --> 00:29:10,240 Speaker 1: think that. I think we're going to see UM strength 521 00:29:10,480 --> 00:29:14,760 Speaker 1: in terms of spending. We're gonna see loan growth UM 522 00:29:14,920 --> 00:29:18,560 Speaker 1: somewhat slowing for all the banks, but still healthy. And 523 00:29:19,240 --> 00:29:23,960 Speaker 1: UM credit we also think remains strong. There's UM you know, 524 00:29:24,040 --> 00:29:27,160 Speaker 1: maybe some pockets of weakness on the lower end, but 525 00:29:27,280 --> 00:29:29,480 Speaker 1: that's a smaller part of the business for these big banks. 526 00:29:29,840 --> 00:29:32,600 Speaker 1: Apart from JP Morgan, of course, we'll hear from Wells 527 00:29:32,720 --> 00:29:36,120 Speaker 1: Fargo later on this hour as well. What's the main 528 00:29:36,440 --> 00:29:40,360 Speaker 1: point you're looking for from Wells UM so again strong 529 00:29:40,480 --> 00:29:44,800 Speaker 1: net interest income, UM, consumer everything that we just discussed 530 00:29:45,360 --> 00:29:47,920 Speaker 1: UM for a whiles. Fargo in particular, what's happening on 531 00:29:48,000 --> 00:29:51,040 Speaker 1: the cost side. Wells Fargo is going to have positive 532 00:29:51,080 --> 00:29:54,080 Speaker 1: operating leverage this year. We expect that's something that a 533 00:29:54,160 --> 00:29:56,000 Speaker 1: lot of the other banks are not going to have. 534 00:29:56,400 --> 00:29:59,320 Speaker 1: Somewhat of a reason for that is their skew towards 535 00:29:59,400 --> 00:30:02,880 Speaker 1: net interest income. But they've also been making structural costs 536 00:30:02,960 --> 00:30:05,920 Speaker 1: to improve their returns, and that's what the focus with 537 00:30:06,040 --> 00:30:09,520 Speaker 1: Wells and with Morgan Stanley to follow. A lot of 538 00:30:09,560 --> 00:30:11,040 Speaker 1: the focus there, I would have to think is on 539 00:30:11,080 --> 00:30:13,880 Speaker 1: the investment banking side. It is, but I think the 540 00:30:14,000 --> 00:30:15,840 Speaker 1: new news we're gonna be looking at is on the 541 00:30:15,920 --> 00:30:19,400 Speaker 1: cost side, because we know that from a revenue perspective, 542 00:30:20,160 --> 00:30:22,720 Speaker 1: UM obviously, just looking at the markets, fees are going 543 00:30:22,760 --> 00:30:26,000 Speaker 1: to be UM way down. Equity trading, which is the 544 00:30:26,080 --> 00:30:29,040 Speaker 1: area that they're relatively stronger in UM is not going 545 00:30:29,080 --> 00:30:30,800 Speaker 1: to be the story of this quarter. The story is 546 00:30:30,800 --> 00:30:33,400 Speaker 1: going to be thick. They will get a benefit from 547 00:30:33,480 --> 00:30:37,040 Speaker 1: fixed which is fixed income trading, so some cross currents 548 00:30:37,080 --> 00:30:41,040 Speaker 1: on revenue, but UM generally going to be lower. So 549 00:30:41,240 --> 00:30:43,120 Speaker 1: what does that mean for the cost side of things? 550 00:30:43,240 --> 00:30:46,320 Speaker 1: What are they doing on the compensation appruals and will 551 00:30:46,400 --> 00:30:49,480 Speaker 1: they pull back some on discretionary spending. That's that was 552 00:30:49,560 --> 00:30:52,480 Speaker 1: something that they had flagged as a potential profit lever 553 00:30:52,760 --> 00:30:55,360 Speaker 1: all Right, Allison Williams of Bloomberg Intelligence. Stick with us. 554 00:30:55,440 --> 00:30:57,680 Speaker 1: We are expecting those first earnings to come out in 555 00:30:57,720 --> 00:31:00,800 Speaker 1: the next few minutes from JP Morgan and Wells Fargo. 556 00:31:00,880 --> 00:31:03,920 Speaker 1: So alisonbi with us in the minutes ahead to break 557 00:31:04,000 --> 00:31:06,920 Speaker 1: down those results as they crossed the Bloomberg terminal. Looking 558 00:31:06,960 --> 00:31:09,880 Speaker 1: into the market. Open futures have turned higher now. SMP 559 00:31:10,040 --> 00:31:12,520 Speaker 1: futures are up seven points, STOUT futures of ninety two, 560 00:31:12,880 --> 00:31:17,520 Speaker 1: NASADAC futures up four points. You're listening to Bloomberg Daybreak 561 00:31:22,080 --> 00:31:24,520 Speaker 1: Bloomberg eleven three oh Weather clearing today with highs in 562 00:31:24,520 --> 00:31:26,880 Speaker 1: the upper sixties, will be sunny to start the weekend. 563 00:31:26,960 --> 00:31:30,240 Speaker 1: Tomorrow's high near seventy. Call it partly sunny for Sunday, 564 00:31:30,440 --> 00:31:33,719 Speaker 1: upper sixties for highs right now fifty four in Central 565 00:31:33,760 --> 00:31:40,440 Speaker 1: Park Markets. Headlines and breaking news twenty four hours a 566 00:31:40,520 --> 00:31:43,520 Speaker 1: day at Bloomberg dot Com, the Bloomberg Business Out and 567 00:31:43,720 --> 00:31:53,320 Speaker 1: at Bloomberg Quicktake. He's a Bloomberg Business Flash and I'm 568 00:31:53,360 --> 00:31:57,040 Speaker 1: far in Moscow. This updates brought to you by Seist Managers, 569 00:31:57,360 --> 00:32:00,959 Speaker 1: uh Mature, brought to you by Interactive Brokers Mistake ibk 570 00:32:01,160 --> 00:32:03,400 Speaker 1: R Event Trader offers a new way to trade futures. 571 00:32:03,720 --> 00:32:06,000 Speaker 1: Use event contracts to trade your opinion on yes or 572 00:32:06,040 --> 00:32:09,120 Speaker 1: no questions and key CM futures markets. Learn more at 573 00:32:09,160 --> 00:32:12,959 Speaker 1: event trader dot Interactive Brokers dot com. Well, we are 574 00:32:13,000 --> 00:32:15,440 Speaker 1: watching earnings crossing the Bloomberg. We're gonna have more on 575 00:32:15,560 --> 00:32:17,200 Speaker 1: that in just a few minutes, but we are hearing 576 00:32:17,240 --> 00:32:20,480 Speaker 1: from JP Morgan Chase and Whilst Fargo. We're also watching 577 00:32:20,520 --> 00:32:22,960 Speaker 1: the pound is a transits losses against the US dollar 578 00:32:23,000 --> 00:32:25,920 Speaker 1: after a tweet from the Times that UK Chancellor Quasi 579 00:32:26,000 --> 00:32:28,840 Speaker 1: Quartang is being sacked. This in preparation for a U 580 00:32:28,960 --> 00:32:32,800 Speaker 1: turn on Prime Minister Liz Trust's economic policy. Futures meanwhile, 581 00:32:32,920 --> 00:32:34,760 Speaker 1: are higher, and we go to the First Word Breaking 582 00:32:34,920 --> 00:32:38,080 Speaker 1: news desk for today's morning call with Bill Maloney. Bill, 583 00:32:38,120 --> 00:32:41,360 Speaker 1: good morning, Hey, good morning, Karen. That's right. US futures 584 00:32:41,400 --> 00:32:43,200 Speaker 1: with a modest bid right now, with Doubt futures up 585 00:32:43,240 --> 00:32:46,040 Speaker 1: a hundred and fifteen points, sesamees gains ten and Nesta 586 00:32:46,120 --> 00:32:49,200 Speaker 1: futures are higher by a point. The US chen yield 587 00:32:49,240 --> 00:32:51,880 Speaker 1: at three point nine percent, Gold is down eleven, oil 588 00:32:52,000 --> 00:32:54,360 Speaker 1: is in the red, and bitcoin is trading higher by 589 00:32:54,400 --> 00:32:57,920 Speaker 1: one point six percent. Japan rose three point three percent overnight, 590 00:32:57,960 --> 00:33:01,160 Speaker 1: while up markets are posting one percent across the board 591 00:33:01,480 --> 00:33:03,400 Speaker 1: and back in the US on the economic front at 592 00:33:03,440 --> 00:33:06,520 Speaker 1: a thirty retail Sales and at ten o'clock Michigan Sentiment. 593 00:33:06,840 --> 00:33:09,400 Speaker 1: Regarding earnings, you mentioned JP Morgan and Wells Fargo. They 594 00:33:09,440 --> 00:33:12,800 Speaker 1: both just reported revenue beat estimates for both companies, and 595 00:33:12,960 --> 00:33:16,200 Speaker 1: United Health beat and raised its full year outlook. Wrapping 596 00:33:16,280 --> 00:33:18,840 Speaker 1: things up north for progomming was cut to neutral over 597 00:33:18,960 --> 00:33:22,240 Speaker 1: ed JP Morgan Live from the first to breaking news Descomb, 598 00:33:22,240 --> 00:33:24,360 Speaker 1: Bill Maloney care alright, Bill, thank you to hear live 599 00:33:24,400 --> 00:33:26,840 Speaker 1: breaking news over here. Bloomberg Time squawk on your terminal 600 00:33:27,000 --> 00:33:29,880 Speaker 1: squ a w K again more on those earnings in 601 00:33:30,000 --> 00:33:32,800 Speaker 1: just a moment from now, and again UK Chancellor Quasi 602 00:33:32,880 --> 00:33:35,520 Speaker 1: Quark Tang is being sacked in preparation for a U 603 00:33:35,600 --> 00:33:38,400 Speaker 1: turn on Prime Minister list. Trust is economic policy that 604 00:33:38,520 --> 00:33:41,240 Speaker 1: according to a tweet from the Times and as a 605 00:33:41,280 --> 00:33:43,880 Speaker 1: Bloomberg business flash, now it's time for a check of 606 00:33:43,960 --> 00:33:47,000 Speaker 1: what's going on around the world, and here's Michael Barr. Michael, 607 00:33:47,120 --> 00:33:49,280 Speaker 1: thank you very much. Jar In the House. January six, 608 00:33:49,320 --> 00:33:52,320 Speaker 1: Committee wrapped up yesterday's public hearing with the call to 609 00:33:52,480 --> 00:33:56,720 Speaker 1: subpoena former President Trump. Trump responded saying the UNSOLID committee 610 00:33:56,800 --> 00:34:00,160 Speaker 1: is a giant scam. Meanwhile, former President Trump is offer 611 00:34:00,240 --> 00:34:04,600 Speaker 1: another setback and the Mara Logo documents investigation. The Supreme 612 00:34:04,680 --> 00:34:07,040 Speaker 1: Court has refused to get involved in a dispute over 613 00:34:07,120 --> 00:34:11,240 Speaker 1: whether a third party should review those classified documents sees 614 00:34:11,280 --> 00:34:13,880 Speaker 1: by the FBI and Baseball. The Yankees will play the 615 00:34:13,880 --> 00:34:16,680 Speaker 1: Guardians in Game two of their A l d S. 616 00:34:17,120 --> 00:34:19,719 Speaker 1: The Astros lead too games zip over the Mariners in 617 00:34:19,760 --> 00:34:22,279 Speaker 1: their A l DS after last night's four to win 618 00:34:22,400 --> 00:34:25,600 Speaker 1: Thursday Night Football Commanders beat the Bears twelve seven NHL, 619 00:34:25,640 --> 00:34:29,080 Speaker 1: the Rangers one, Devil's Islanders and Capitals lost. Global News 620 00:34:29,160 --> 00:34:31,360 Speaker 1: twenty four hours a day on air and on Bloomberg 621 00:34:31,440 --> 00:34:34,640 Speaker 1: Quicktake power by more than the journalists and analysts more 622 00:34:34,640 --> 00:34:37,680 Speaker 1: than a hundred twenty countries. Michael bar this is Bloomberg, Nathan. 623 00:34:37,760 --> 00:34:40,160 Speaker 1: Thank you, Michael. We are live from the Bloomberg Interactive 624 00:34:40,160 --> 00:34:42,360 Speaker 1: Brokers studios, where it's coming up to six fifty on 625 00:34:42,520 --> 00:34:45,360 Speaker 1: Wall Street as we continue to watch headlines cross the 626 00:34:45,400 --> 00:34:48,879 Speaker 1: Bloomberg terminal from JP Morgan Chase and Wells Fargo, both 627 00:34:49,000 --> 00:34:53,400 Speaker 1: reporting earnings beats this morning let's bring back Bloomberg's Global 628 00:34:54,560 --> 00:34:59,279 Speaker 1: Global Investment Banks Senior analyst Alison Williams. Watching these headlines 629 00:34:59,440 --> 00:35:03,560 Speaker 1: cross this morning. UH, solid beats all around, it looks 630 00:35:03,640 --> 00:35:08,120 Speaker 1: like Allison, So the big story so far looks like 631 00:35:08,520 --> 00:35:11,000 Speaker 1: the very strong net interest income and so that was 632 00:35:11,080 --> 00:35:15,440 Speaker 1: something that UM, you know, the company itself had had 633 00:35:15,520 --> 00:35:18,400 Speaker 1: hinted that their full year guidance might go up. UM 634 00:35:18,600 --> 00:35:21,600 Speaker 1: numbers coming in better for both these banks. We expect 635 00:35:21,640 --> 00:35:24,480 Speaker 1: the same thing from City Group also on JP Morgan 636 00:35:24,600 --> 00:35:27,400 Speaker 1: better fixed income trading, equity trading a little light, but 637 00:35:27,719 --> 00:35:30,719 Speaker 1: net net still positive. M and A f is coming 638 00:35:30,760 --> 00:35:34,239 Speaker 1: in better than expected. That's also good. UM. Looking at 639 00:35:34,280 --> 00:35:38,440 Speaker 1: the low lost provision, that lost provision is a bit higher, UH, 640 00:35:38,920 --> 00:35:43,360 Speaker 1: current charge offs are lower. So good strong credit that 641 00:35:43,400 --> 00:35:45,920 Speaker 1: we're seeing right now, but perhaps a little bit more 642 00:35:45,960 --> 00:35:49,960 Speaker 1: conservative about the outlook. Now. We've seen JP Morgan shares 643 00:35:50,200 --> 00:35:52,960 Speaker 1: jump as high as I think about one point seven 644 00:35:53,080 --> 00:35:56,479 Speaker 1: percent on those results. Now they're appearing some of those 645 00:35:56,680 --> 00:36:00,960 Speaker 1: gains interesting as well. Allison, to see this headline that 646 00:36:01,080 --> 00:36:04,120 Speaker 1: Wells Fargoes quarter included a two billion dollar loss on 647 00:36:04,239 --> 00:36:08,000 Speaker 1: regulatory matters and other costs. That is exactly the number 648 00:36:08,080 --> 00:36:11,080 Speaker 1: that I was just looking at UM. So, you know, 649 00:36:11,560 --> 00:36:14,560 Speaker 1: Wells Fargo, when are we going to get past these 650 00:36:15,000 --> 00:36:19,080 Speaker 1: sizeable charges? We keep thinking we're past the worst UM 651 00:36:19,280 --> 00:36:21,120 Speaker 1: and we keep getting them. I mean, it's on the 652 00:36:21,320 --> 00:36:25,120 Speaker 1: core basis for Wells Fargo. The story about improving costs 653 00:36:25,440 --> 00:36:28,839 Speaker 1: looks like that they're still continuing to execute. But when 654 00:36:28,880 --> 00:36:31,879 Speaker 1: are we going to get these regulatory um issues, these 655 00:36:31,960 --> 00:36:36,200 Speaker 1: regulatory costs behind the bank. Also seeing that JP Morgan 656 00:36:36,280 --> 00:36:38,879 Speaker 1: CEO Jamie Diamond says he hopes to resume BUYBAX early 657 00:36:38,960 --> 00:36:42,280 Speaker 1: next year. What's your read on that? That's a positive? 658 00:36:42,360 --> 00:36:44,640 Speaker 1: You know. One of the things, uh, one of the 659 00:36:44,680 --> 00:36:47,080 Speaker 1: big surprises that we got this year for all the banks, 660 00:36:47,239 --> 00:36:49,760 Speaker 1: well at least for JP Morgan Bank of American City. 661 00:36:50,320 --> 00:36:52,640 Speaker 1: We did see a big increase in their capital ratios 662 00:36:52,719 --> 00:36:55,880 Speaker 1: that's coming to bear this quarter. But then we have 663 00:36:56,239 --> 00:36:59,640 Speaker 1: increases also across several banks that we're expecting uh in 664 00:36:59,680 --> 00:37:03,800 Speaker 1: twenty twenty three. The fact that they are building capital, 665 00:37:04,239 --> 00:37:06,800 Speaker 1: getting above those ratios and able to begin buy backs, 666 00:37:06,840 --> 00:37:10,719 Speaker 1: that's a key positive for the banks. Bloomberg's Bloomberg Intelligence 667 00:37:10,920 --> 00:37:13,960 Speaker 1: Senior analysts for Global Investment banks, Allison Williams breaking down 668 00:37:13,960 --> 00:37:16,560 Speaker 1: the JP Morgan and Wells Fargo results as they continue 669 00:37:16,600 --> 00:37:19,440 Speaker 1: across the Bloomberg terminal. Be checking back with you throughout 670 00:37:19,520 --> 00:37:22,879 Speaker 1: the morning here on Bloomberg Radio six fifty two. Now 671 00:37:23,080 --> 00:37:25,520 Speaker 1: on Wall Street. Usually time to check what's going on 672 00:37:25,600 --> 00:37:27,920 Speaker 1: in d C. But the big story is happening this 673 00:37:28,080 --> 00:37:31,440 Speaker 1: morning in the capital of the United Kingdom, where the 674 00:37:31,560 --> 00:37:35,080 Speaker 1: Chancellor Quasi Quartang has just gotten back from Washington, and 675 00:37:35,360 --> 00:37:37,879 Speaker 1: reports have it he may be out of a job. 676 00:37:38,120 --> 00:37:41,360 Speaker 1: Joining us now Bloomberg opinion columnist Marcus Ashworth as we 677 00:37:41,440 --> 00:37:45,359 Speaker 1: await details on the U turn from Prime Minister Liz 678 00:37:45,480 --> 00:37:50,279 Speaker 1: Trust big U turn. It looks like, Marcus, I was 679 00:37:50,360 --> 00:37:52,600 Speaker 1: just thinking, listen to Alison, that I was to be 680 00:37:52,640 --> 00:37:59,320 Speaker 1: able to look at a very opaque, really public questions. 681 00:37:59,600 --> 00:38:01,879 Speaker 1: I mean, what is going on? I mean, my lord, 682 00:38:02,680 --> 00:38:05,040 Speaker 1: the simple rule here is that he can't present a 683 00:38:05,120 --> 00:38:10,040 Speaker 1: budget which people can understand, appreciate or get along with. 684 00:38:10,400 --> 00:38:13,799 Speaker 1: You shouldn't be in politics, and I'm fartually unfortunately Quasi Quarte, 685 00:38:13,880 --> 00:38:16,640 Speaker 1: remember the brightest guy in many different rooms, but he 686 00:38:16,800 --> 00:38:20,480 Speaker 1: is not a politician, and he unfortunately looks like he's 687 00:38:20,480 --> 00:38:24,359 Speaker 1: going to be a defllustrated about the expression the chat 688 00:38:24,520 --> 00:38:27,000 Speaker 1: is that either Terres Coffee is currently the sort of 689 00:38:27,200 --> 00:38:30,560 Speaker 1: defintely Prime Minister, but really the Health Secretary or indeed 690 00:38:30,680 --> 00:38:33,920 Speaker 1: a blastem of past Jeremy Hunt, the MP quite close 691 00:38:33,960 --> 00:38:36,279 Speaker 1: to our live um might be pulled back from the 692 00:38:36,320 --> 00:38:40,880 Speaker 1: backbenches UM and board on his chancellor. But certainly they 693 00:38:40,920 --> 00:38:44,120 Speaker 1: are going to have to rejig make the numbers add 694 00:38:44,200 --> 00:38:46,840 Speaker 1: up join in the middle. And clearly the guilt market 695 00:38:47,000 --> 00:38:49,560 Speaker 1: is is loving it. There's an assid buy back the 696 00:38:49,760 --> 00:38:52,440 Speaker 1: last one to day. We'll see that load of this afternoon. 697 00:38:52,520 --> 00:38:54,560 Speaker 1: But you know, really all eyes on the politics because 698 00:38:55,360 --> 00:38:58,279 Speaker 1: if they take back particularly the corporation tax saying it 699 00:38:58,440 --> 00:39:00,239 Speaker 1: may make the numbers joined a little bit year and 700 00:39:00,280 --> 00:39:03,920 Speaker 1: that really is what people want to see funded budget 701 00:39:04,200 --> 00:39:06,120 Speaker 1: where people can understand when the money is come because 702 00:39:06,120 --> 00:39:07,799 Speaker 1: they are going to be a lot more money this year. 703 00:39:08,040 --> 00:39:09,759 Speaker 1: People have to make sure they understand where it's all 704 00:39:09,800 --> 00:39:11,640 Speaker 1: coming from and how it's funded. But in terms of 705 00:39:12,040 --> 00:39:14,920 Speaker 1: when currency traders are looking for Marcus, I have to 706 00:39:15,040 --> 00:39:17,279 Speaker 1: think that they want to see that the budget is 707 00:39:17,400 --> 00:39:20,120 Speaker 1: coming in a little bit closer than just a little 708 00:39:20,160 --> 00:39:24,800 Speaker 1: bit of a gap moving in well maybe, but I 709 00:39:24,840 --> 00:39:26,719 Speaker 1: mean the point is is that there's all this would 710 00:39:26,760 --> 00:39:30,279 Speaker 1: have been possible always that the government new governments trying 711 00:39:30,280 --> 00:39:32,320 Speaker 1: to could be probble if they've just gone about it 712 00:39:32,320 --> 00:39:35,680 Speaker 1: in the right way. Announcing a top rate tax cub 713 00:39:35,760 --> 00:39:38,200 Speaker 1: and indeed bank of bonus things. If you could have 714 00:39:38,200 --> 00:39:40,560 Speaker 1: done that a year's time and it wouldn't have no 715 00:39:40,640 --> 00:39:43,080 Speaker 1: one of bed Blatton Island. They could have done things 716 00:39:43,320 --> 00:39:45,840 Speaker 1: and roll the pitch made us aware of what's going on. 717 00:39:46,280 --> 00:39:50,120 Speaker 1: And they literally needed to wait for the Office four 718 00:39:50,200 --> 00:39:53,400 Speaker 1: Budget Responsibility, which marks the homework to make sure the 719 00:39:53,440 --> 00:39:56,799 Speaker 1: government finances make sense. And because it shifted it from 720 00:39:56,960 --> 00:39:59,359 Speaker 1: a three year horizon to a five year horizon, they're 721 00:39:59,360 --> 00:40:02,880 Speaker 1: going to all the scene. It's a presentational problem. Unfortunately, No, 722 00:40:02,960 --> 00:40:05,239 Speaker 1: I'll have to row back on all the good things 723 00:40:05,280 --> 00:40:07,800 Speaker 1: that they might have been doing for economic growth and 724 00:40:07,920 --> 00:40:09,759 Speaker 1: go back to where we were before, which I think 725 00:40:09,880 --> 00:40:13,120 Speaker 1: was actually run us under the previous chance Serbroty snack, 726 00:40:13,440 --> 00:40:17,239 Speaker 1: you know, hiking taxes on corporations. Indeed, I think that 727 00:40:17,320 --> 00:40:20,120 Speaker 1: they're being will touched this. They'll keep this reverse up 728 00:40:23,360 --> 00:40:25,400 Speaker 1: in the middle of a recession or it's not the 729 00:40:25,480 --> 00:40:27,040 Speaker 1: right thing to have done. But there we go back 730 00:40:27,160 --> 00:40:29,640 Speaker 1: back in the future. Yeah, we'll see where the future 731 00:40:29,719 --> 00:40:32,839 Speaker 1: goes with Let's trust the Prime Minister expected to hold 732 00:40:32,880 --> 00:40:36,279 Speaker 1: a news conference nine am Wall Street time on the 733 00:40:36,360 --> 00:40:40,840 Speaker 1: reports of the Chancellor. Quasi Quartean could be out. Bloomberg 734 00:40:40,880 --> 00:40:43,960 Speaker 1: copinion columnist Marcus Ashworth thanks for this, appreciate you coming 735 00:40:44,000 --> 00:40:47,080 Speaker 1: on with us. Karen, all right, Nathan, thank you. It 736 00:40:47,239 --> 00:40:49,520 Speaker 1: is six fifty six on Wall Street. Let's turn to 737 00:40:49,640 --> 00:40:52,160 Speaker 1: news now in science and technology with the Bloomberg and 738 00:40:52,280 --> 00:40:54,560 Speaker 1: j I T STEM Report. It is run to you 739 00:40:54,640 --> 00:40:57,120 Speaker 1: by New Jersey Institute of Technology n j I T 740 00:40:57,200 --> 00:40:59,800 Speaker 1: and ACE industry ready engineers and more than twenty fields. 741 00:40:59,840 --> 00:41:02,120 Speaker 1: If it's engineering, it's at n j I T. What 742 00:41:02,280 --> 00:41:04,160 Speaker 1: will you make at n j I T. Learn more 743 00:41:04,239 --> 00:41:07,200 Speaker 1: at n j I T dot E d U. Well, 744 00:41:07,320 --> 00:41:10,080 Speaker 1: here's what's making news and science, technology, engineering and math. 745 00:41:10,200 --> 00:41:13,400 Speaker 1: The Antarctic ozone whole last week peaked at a moderately 746 00:41:13,600 --> 00:41:16,440 Speaker 1: large size for the third straight year, bigger than the 747 00:41:16,560 --> 00:41:20,120 Speaker 1: size of North America, but experts say it's still generally 748 00:41:20,280 --> 00:41:24,720 Speaker 1: shrinking despite recent blips because of high altitude cold cold weather. 749 00:41:25,040 --> 00:41:27,239 Speaker 1: The ozone hole hit its peak size of more than 750 00:41:27,320 --> 00:41:30,719 Speaker 1: ten million square miles earlier this month. NASA says as 751 00:41:30,760 --> 00:41:34,760 Speaker 1: the largest it's been since. Scientists say because of cooler 752 00:41:34,800 --> 00:41:38,160 Speaker 1: than normal temperatures over the southern polar regions at seven 753 00:41:38,239 --> 00:41:41,480 Speaker 1: to twelve miles high where the ozone hole is, conditions 754 00:41:41,520 --> 00:41:46,120 Speaker 1: are ripe for ozone munching chlorine chemicals and Meta Platforms 755 00:41:46,239 --> 00:41:48,480 Speaker 1: is urging a judge to reject the US Federal Trade 756 00:41:48,480 --> 00:41:51,880 Speaker 1: Commission's attempt to block the company's acquisition of virtual reality 757 00:41:51,920 --> 00:41:55,080 Speaker 1: app Within Unlimited, not to argue the FTC has not 758 00:41:55,239 --> 00:41:57,480 Speaker 1: laid out the elements to slow the show. The deal 759 00:41:57,520 --> 00:42:00,879 Speaker 1: announced last year but hurt potential competition and is still young. 760 00:42:01,000 --> 00:42:04,279 Speaker 1: VR Fitness Space and Apple and Golden Sacks are teaming 761 00:42:04,360 --> 00:42:06,480 Speaker 1: up to offer savings accounts the users of the tech 762 00:42:06,520 --> 00:42:09,720 Speaker 1: company's credit card. The move builds on the existing credit 763 00:42:09,760 --> 00:42:12,960 Speaker 1: card partnership between the two companies. And that's the Bloomberg 764 00:42:13,040 --> 00:42:17,200 Speaker 1: and j I t Stem report. And again futures this 765 00:42:17,400 --> 00:42:20,480 Speaker 1: morning are on the rise. We continue to watch that 766 00:42:20,800 --> 00:42:25,520 Speaker 1: story the suite that UK Chancellor Quasi Quarteng is being sacked. 767 00:42:25,600 --> 00:42:28,080 Speaker 1: He's going to be out in preparation for a U 768 00:42:28,200 --> 00:42:31,200 Speaker 1: turn on Prime Minister list Trust is economic policy. They 769 00:42:31,239 --> 00:42:33,680 Speaker 1: will continue to discuss that story and delve into it 770 00:42:33,760 --> 00:42:37,279 Speaker 1: on Bloomberg Surveillance, which is a straight ahead. They're also 771 00:42:37,320 --> 00:42:38,960 Speaker 1: going to be looking into the earnings we got this 772 00:42:39,120 --> 00:42:42,320 Speaker 1: morning from JP Morgan, Chase and Whiles Fargo, among others, 773 00:42:42,680 --> 00:42:45,920 Speaker 1: and for Nathan Hagar. I'm Karen Moscow and this is 774 00:42:45,960 --> 00:42:46,520 Speaker 1: Bloomberg