Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg
Speaker 1: day Break for Friday, October four two. Coming up, the
Speaker 1: Shower Stocks rise. Following the historic rally on Wall Street,
Speaker 1: Banker Niece kick off this morning, Speculation grows the UK
Speaker 1: government will abandon its tax cut plan, and Twitter says
Speaker 1: Elon Musk is being investigated over his attempted acquisition. The
Speaker 1: January six panel has voted to subpoena former President Trump lost.
Speaker 1: The shooting in the Rowley, North Carolina neighborhood has left
Speaker 1: five dead. I'm Michael blomer More, I'm John stashowern Sports,
Speaker 1: the Yankees and Guardians played game to this afternoon. Other
Speaker 1: went for the Astros, the Rangers, one, the Devil's and
Speaker 1: Islanders Long. That's all training head on Bloomberg day Break
Speaker 1: on Bloomberg eleven three on New York, Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties,
Speaker 1: San Francisco, Sirius x M one nine Team and around
Speaker 1: the world. Old on Bloomberg Radio dot Com and via
Speaker 1: The Bloomberg Business And Good Morning. I'm Tarin Moscow. I'm
Speaker 1: Nathan Hagar. Bloomberg Day Break brought to you by se I.
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Speaker 1: dot Com, slash I m S and US Stock Index
Speaker 1: futures are lower. This morning. It is six o one
Speaker 1: on Wall Street, and we check the markets every fifteen
Speaker 1: minutes throughout the trading day. On Bloomberg, SMP futures down
Speaker 1: seven points down, futures down nineteen, nowsday futures down forty three,
Speaker 1: Nathan Karen. We enter this final trading day of the
Speaker 1: week coming off a truly historic day after the SMP
Speaker 1: fire fell two point four percent in reverse course and
Speaker 1: closed up two point six percent. Bloomberg data going back
Speaker 1: to show never before as the market experienced such extreme
Speaker 1: readings both ways in one day. Dave don Ovidian is
Speaker 1: chief investment officer at CIBC Private Wealth. Yeah, I don't
Speaker 1: think a day like this signifies the market bottom. Obviously,
Speaker 1: we had a a really strong market from mid June
Speaker 1: to mid August and it was just a bear market rally.
Speaker 1: But um, yeah, I think we're certainly closer to the
Speaker 1: end than the beginning of this bull market they've done
Speaker 1: o beating and at CIBC Private Wealth thinks triggered automated
Speaker 1: buying helped fuel yesterday's turnaround, but the turnaround maybe sure lived.
Speaker 1: Nathan Bank of America says stock markets in the US
Speaker 1: economy will have to experience more pain before the FED
Speaker 1: pivots away from aggressive policy strategies. At the bank's sake, quote,
Speaker 1: it was a decent counter rally, but Low's won't be
Speaker 1: reached until next year. They say more economic and market
Speaker 1: pain will be necessary before the Fed backs down. Well, Karen,
Speaker 1: the White House was grasping for upside after yesterday's inflation
Speaker 1: reports saw core CPI rise to a forty year high.
Speaker 1: President Biden discussed the reading with reporters in Los Angeles.
Speaker 1: Americans are squeezed by the cost of the living. It's
Speaker 1: been true for years, and folks don't need to be
Speaker 1: a report to tell them there'll be a squeeze. Fighting
Speaker 1: this battle every day is the key reason why I
Speaker 1: ran for president, Nited states. However, President Biden did note
Speaker 1: overall inflation was just two percent over the last three months.
Speaker 1: He said, quote that's down from eleven percent over the
Speaker 1: prior three months, well over the weekend. Nathan the President
Speaker 1: conceded that a slight recession is possible, but one administration
Speaker 1: official notes that it's not inevitable. We spoke to US
Speaker 1: Commerce Secretary Gina Ramando. I talked to CEOs of the
Speaker 1: biggest companies and the smallest companies every day in every industry. Yes,
Speaker 1: they're anxious. Global markets are unstable. The war in Ukraine
Speaker 1: obviously makes everything unstable. But they're also telling me customers
Speaker 1: are buying. Consumers are buying, they are still hiring, American
Speaker 1: companies are innovating. Commerce Secretary Genie Raimondo made the comments
Speaker 1: in an interview on Bloomberg Radio and Television. Catch the
Speaker 1: full conversation online at Bloomberg dot com. One of those CEOs, Karen,
Speaker 1: appears to have a more tep but I'll look on
Speaker 1: the economy. JP Morgan Chases Jamie Diamond discussed inflation and
Speaker 1: the FED at a conference in Washington yesterday. I don't
Speaker 1: know if it could be a soft landing. I don't
Speaker 1: think so. But my mild session or tougher session. My
Speaker 1: point in the tougher session, yeah, you expect the market.
Speaker 1: I'm not gonna keep eyes across those three things. But
Speaker 1: for all of us who have to worry about risk. You,
Speaker 1: of course you should plan for those things. Jamie Diamond says,
Speaker 1: his gut tells him the Federal Reserve will have to
Speaker 1: raise rates higher than four and a half percent in
Speaker 1: order to detain inflation. Well Diamond's bank is among several
Speaker 1: schedule to kick off earning season today, Nathan. We get
Speaker 1: a preview on that from Bloomberg's Jeff Bellinger. By the
Speaker 1: time the markets opened this morning, investors will have heard
Speaker 1: from JP Morgan, Chase, City Group, Morgan Stanley, and Wells Fargo.
Speaker 1: Investors will be interested in the results from the last quarter,
Speaker 1: but they'll likely be even more interested to hear what
Speaker 1: banking executives expect going forward. Bloomberg says the big banks
Speaker 1: will announce they're setting aside billions of dollars to protect
Speaker 1: against expected loan losses as growing numbers of customers get
Speaker 1: squeezed by inflation and high interest rates. Jeff Bellinger Bloomberg
Speaker 1: day Break, All right, Jeff, thank you. We also get
Speaker 1: more economic data to the jest this morning in the
Speaker 1: former retail sales and consumer sentiment here with Morris Bloomberg's
Speaker 1: and he Delt Judice. The prior report covering August showed
Speaker 1: US retail sales rebounded from the July slump. Bloomberg Economics
Speaker 1: as today's data will most likely indicate spending on consumer
Speaker 1: goods move toward pre pandemic levels in September. That's taking
Speaker 1: inflation into account. Also today, the University of Michigan issues
Speaker 1: it's US consumer Sentiment index for early October, and Bloomberg
Speaker 1: Economics anticipates another slugger's reading, the sentiment index at a
Speaker 1: record low earlier in the year. Beneat Dealt Judaic s
Speaker 1: Bloomberg Day Break, Right, Benny, thank you, and you're up
Speaker 1: this morning. It looks like the UK government will abandon
Speaker 1: its plans for massive tax cuts. Details are scarce, but
Speaker 1: Bloomberg News has learned Prime Minister list trust will reverse
Speaker 1: parts of our economic strategy. Begin more from Bloomberg's James
Speaker 1: Wilcock in London. Good morning, James, Good morning, Karen Nathan
Speaker 1: Decas Chancellor quasi class. That's the London, London un especially
Speaker 1: cutting short his trip to Washington, UK ask that's the
Speaker 1: stage a comeback on the news. It's trying to suspect
Speaker 1: a youth sound is down the road Field, Antenia bonds
Speaker 1: pledged to be a full presentment of the market opens
Speaker 1: and it all comes at the back of England to
Speaker 1: wrap up their emergency bond buying program. Late today in London,
Speaker 1: James Wilcock, Bloomberg Daybreak, James, Thanks. In Corporate news this morning,
Speaker 1: lawyers for Twitter say Elon Musk is under investigation over
Speaker 1: his attempt to take the company private. We get the
Speaker 1: details from Bloomberg's Doug Prisner. In April, the SEC sent
Speaker 1: a query to Musko over how he initially disclosed his
Speaker 1: nine percent stake in Twitter. He did so a week
Speaker 1: later than regulations allow, and he used a filing typically
Speaker 1: reserved for passive investors. Then in June, the SEC wanted
Speaker 1: information on Musk, tweeting the deal cannot move forward until
Speaker 1: he was given more information about spam and fraudulent accounts.
Speaker 1: Now in a court filing in Delaware, Twitter's lawyers say
Speaker 1: Musk has exchanged substantive correspondence with federal authorities as they
Speaker 1: look into his conduct, and they say this game of
Speaker 1: hide the ball must end in New York. I'm Doug Prisner,
Speaker 1: Bloomberg Daybreak. All right, thank you, and Bloomberg Daybreak brought
Speaker 1: to you by ib k R and Spin Advisers switched
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Speaker 1: Future is now little changed. Straight ahead your latest local
Speaker 1: headlines plus the check of sports and this is Bloomberg.
Speaker 1: Thank you. Carring six O seven on Wall Street fifty
Speaker 1: three degrees in Central Park got a new crash northbound
Speaker 1: Cross Island Parkway at Northern Boulevard. Details coming up in traffic.
Speaker 1: First Michael Barr with what else is going on in
Speaker 1: New York and around the world. Good morning, Michael, Good
Speaker 1: morning Nathan. The final January six Committee hearing's theme was
Speaker 1: that Donald Trump began the plan to stay in office
Speaker 1: as early as July. Bloomberg's headboxter as the story to
Speaker 1: remain no matter what the vote showed in November. Coachair
Speaker 1: List Cheney says, what's left We must seek the testimony
Speaker 1: under oath of January six. Central Player Donald Trump, followed
Speaker 1: by a unit must vote to subpoena from the committee. Meanwhile,
Speaker 1: the Supreme Court has refused to get involved in Trump's
Speaker 1: request to return seized documents from our lago. It also
Speaker 1: refused to reinstate a special master. A major victory for
Speaker 1: the Department of Justice in San Francisco. I'm at Baxter
Speaker 1: Bloomberg Gay Break. Connecticut Governor Lamant has ordered flags flown
Speaker 1: at half staff in the state after three officers were
Speaker 1: shot in the line of duty in Bristol. Two of
Speaker 1: the officers are dead. Governor Lamont said there are too
Speaker 1: many illegal guns and not enough cops on the streets.
Speaker 1: I hope when you see your policeman woman on the
Speaker 1: street corner, you go up and say thank you for
Speaker 1: what you do. I hope you show a little respect
Speaker 1: for the folks that are there, Governor Lamont. State police said,
Speaker 1: and a release that the nine one on one called
Speaker 1: Wednesday night about a dispute between two siblings appears to
Speaker 1: have been a deliberate act to lure law enforcement to
Speaker 1: the scene in Bristol. In North Carolina, Raleigh police say
Speaker 1: a male juvenile is in the custody hours after a
Speaker 1: masch dooting that left five people dead, including an off
Speaker 1: duty police officer, in the neighborhood. Raleigh Mayor Mary Anne
Speaker 1: Baldwin praise the responding officers, saying they put their lives
Speaker 1: at a risk to protect the city. You know, you
Speaker 1: pray that something like this will never happen here. It did,
Speaker 1: and I want to thank all the officers who responded
Speaker 1: in the way they did. Raleigh Mayor Baldwin. Police say
Speaker 1: there's no word on a motive. North Korea has fired
Speaker 1: yet another ballistic missile this launch game. As North Korea
Speaker 1: also flew warplanes near the border with South Korea. Beyong
Speaker 1: Yang says they're meant as a warning to Seoul and
Speaker 1: the US about their joint military exercises. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than add twenty countries. I'm Michael Barr. This is Bloomberg, Nathan.
Speaker 1: Thank you. Michael. Six o nine on Wall Street. Time
Speaker 1: for the Bloomberg Sports Update with John sten Shower. All right, Nathan,
Speaker 1: Yankees and Guardians two days off between games one and two,
Speaker 1: but set to go at one o'clock at the stadium,
Speaker 1: So unless there's another rain out, no more days off.
Speaker 1: The rain was expected and Aaron Boone was asked before
Speaker 1: and the effect of a postpone man and it would
Speaker 1: probably affect the pitching rotation if he went five games
Speaker 1: and he had to play four in a row. Sure, Um,
Speaker 1: the lineup, no, I mean we play, that's what you
Speaker 1: do is in baseball as you play every day. So
Speaker 1: shouldn't affect that. Um, you know, that's more who we're
Speaker 1: going up against, matchups, things like that. When today starts,
Speaker 1: Est Cortez Shane Bieber for Cleveland, Houston's up to nothing.
Speaker 1: In the other a l DS, the Astros had their
Speaker 1: slugger you're Don Alvarez, the fact he hit the game
Speaker 1: winning three run over in game one and he hit
Speaker 1: the go ahead two run shots sixteing the game two
Speaker 1: four two. Astros went over Seattle a couple of game
Speaker 1: threes today tonight in the n LDS, both series are
Speaker 1: tied at one week six underway in Chicago, Washington won
Speaker 1: twelve to seven and in the four game Losings made
Speaker 1: the only Commanders touchdown scored by a rookie running back
Speaker 1: Brian Robinson, who has made a remarka will come back.
Speaker 1: Two months ago, he was shot twice in the leg
Speaker 1: in an attempt at robbery in DC. Jets and Giants
Speaker 1: looking to keep their warning ways going. Sunday, the Jets
Speaker 1: visit Green Bay, the Giants are home for Baltimore on
Speaker 1: the Giants punter is now back home. The native Scott
Speaker 1: Jamie Gillen was unable to fly home with the team
Speaker 1: do a visa issue, so he had been staying at
Speaker 1: an airbnb in London. Rangers already two and oh. They
Speaker 1: won seven three at Minnesota. Chris Cryder fifty two goals
Speaker 1: last year and he had the first and last Ranger goals.
Speaker 1: Islander season opener at three one, Home lost the floor
Speaker 1: to the Devil's lost five to at Philadelphia. John stash
Speaker 1: were Bloomberg Sports, Nathan, thank you, John. We're watching futures
Speaker 1: take a bit of a turn this morning, SMP futures
Speaker 1: in that little change down futures have turned higher, up
Speaker 1: forty two points. Nastack futures still lower down eighteen Tenure
Speaker 1: treasuries now up ten thirty seconds yield three point nine
Speaker 1: zero percent. As we await bank earnings. Will check in
Speaker 1: the next on it with Ken Leon, director of Equity
Speaker 1: Research at c f r A. This is Bloomberg Bloomberg
Speaker 1: eleven three oh weather. We'll clear this afternoon, get up
Speaker 1: to the upper sixties, sunny near seventy tomorrow, partly sunny
Speaker 1: Sunday with highs in the upper sixties right now fifty
Speaker 1: three degrees in Central Park. Markets headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com, the
Speaker 1: Bloomberg Business Outland at Bloomberg Quick Tape. He's a Bloomberg
Speaker 1: Business Flash and I'm Karin Moscow. This updates brought to
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Speaker 1: s Dock Index futures are well. Little change now as
Speaker 1: investors away key earnings reports from Big Wall Street banks.
Speaker 1: Bonds are advancing lad UK guilts, which benefit from speculation
Speaker 1: that controversial tax cunning plans would be revised. We checked
Speaker 1: the markets every fifteen minutes throughout the trading day on
Speaker 1: Bloomberg s and P futures again, that'll change down. Futures
Speaker 1: up twenty six, NAS day futures down thirty one the
Speaker 1: docks in Germany is up eight tenths of uppercent ten
Speaker 1: year treasury up eleven thirty seconds. You know, three point
Speaker 1: eight nine percent they yield on the two year four
Speaker 1: point four two percent. Nine X Screwed oil is down
Speaker 1: nine ten percent or eighty one cents at eighty eight dollars.
Speaker 1: Twenty nine cents of barrel co mix gold is down
Speaker 1: one percent or sixteen dollars forty cents at sixteen sixty
Speaker 1: fifty announced. The euro point nine seven three two against
Speaker 1: the dollar, British found one point one to eight and
Speaker 1: the end one forty seven point six five. Looking at
Speaker 1: a bitcoin, it's up one and a half percent at
Speaker 1: nineteen thousand, seven 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 Karen, thank you very much. The
Speaker 1: House January six Committee voted unanimously to supoena former President
Speaker 1: Donald Trump or his testimony about the one Capital Often Act.
Speaker 1: Earlier in the hearing, the panel presented new video of
Speaker 1: how Speaker Nancy Pelosi and other congressional leaders pleading for help.
Speaker 1: It also outlined Trump's multipart plan to overturn his twenty
Speaker 1: election loss. President Joe Biden again criticized high US gas
Speaker 1: prices and said he'd announced new actions to combat what
Speaker 1: he described as a key driver of inflation. In baseball,
Speaker 1: the Yankees will play the Guardians in game two of
Speaker 1: their A LBS after last night's rain out. The Astros
Speaker 1: lead two games to zip over the Mariners in their
Speaker 1: A LBS after last night's four to win. Thursday Night Football,
Speaker 1: the Commanders beat the Bears twelve seven. In the NHL,
Speaker 1: the Rangers won, the Devil's Islanders and Capitals all lost.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than hundred journalists and
Speaker 1: analysts more than a hundred twenty countries. Michael Blar, this
Speaker 1: is Bloomberg, Nathan, I'm Michael. Thank you. It's almost six
Speaker 1: twenty on Wall Street Line from the Bloomberg Interactive Brokers Studios.
Speaker 1: This is Bloomberg Daybreak on what is about to be
Speaker 1: a very busy day in bank earning. Season four of
Speaker 1: the Big six Wall Street firms report before the opening bell.
Speaker 1: Ahead of it. We're joined by Ken Leon, director of
Speaker 1: Equity Research at c f R, A Ken. It's great
Speaker 1: to speak with you on a bank earnings Friday. And
Speaker 1: when we hear from the likes of JP Morgan's CEO
Speaker 1: Jamie Diamond doubling down on his predictions for recession in
Speaker 1: the next few months, I guess the question for investors
Speaker 1: is how bad could these earnings be? Well, good morning,
Speaker 1: and and third quarter results actually are going to be
Speaker 1: fairly resilient, and we'll see strengths in certain areas. The
Speaker 1: consumer will still be stable, um, and rising rates helps
Speaker 1: UH in terms of earnings. But looking ahead, you're right,
Speaker 1: it's really the world of worry is what will these
Speaker 1: banks do UH in a recession next year and certainly
Speaker 1: for the fourth cool it or we're not looking for
Speaker 1: any up check in terms of investment banking. Volatility in
Speaker 1: the markets has made trading an offset to a decline
Speaker 1: in investment banking. But you get to main street and
Speaker 1: the consumer and small business. UH, they're beginning to feel
Speaker 1: some pain points. UM. We're not sure how much the
Speaker 1: managements today will speak to what they see in their
Speaker 1: crystal ball, but they'll say that the consumer is probably
Speaker 1: resilient just based on the third quarter results. Now, we
Speaker 1: did hear that just a couple of days ago from
Speaker 1: Bank of America's CEO Brian moynihan. Where do you think
Speaker 1: we're gonna see that sign of resiliency given that interest
Speaker 1: rates are moving higher? Do you think that helps savers?
Speaker 1: But in terms of getting loans or taking loans, that
Speaker 1: could make things more difficult, couldn't it. It will, so
Speaker 1: the lending activity will certainly begin to flow down, and
Speaker 1: certainly for respect and UH, that will really reduce the
Speaker 1: full pocity. So so for banks who can charge more
Speaker 1: with rising rates, it's the volume decline. Then it's kind
Speaker 1: of like an offset. So it's not a win win situation.
Speaker 1: And that's kind of the environment ahead. You just don't
Speaker 1: have a great scenario in terms of the economy that's
Speaker 1: going to propel bank earnings higher next year. One of
Speaker 1: the reasons why the stocks have been so low. But
Speaker 1: the banks do have a fortress balacy, as Damie diamond says,
Speaker 1: UM they're well capitalized, but regulators are going to make
Speaker 1: sure that the capital buffers are big enough in case
Speaker 1: there's any unexpected punch. We've seen a lot of news,
Speaker 1: whether it's the Bank of England credits with UM blending
Speaker 1: even into China's construction residential market. You know, there's always
Speaker 1: lots of worries, but right now the bank's balencyats are
Speaker 1: very strong and can really endure any damper next year.
Speaker 1: Are you thinking that that strengthen the balance sheets is
Speaker 1: going to translate into even further provisions for loan losses.
Speaker 1: We've seen billions of dollars on that score. Well, we'll
Speaker 1: probably say some of the banks book anywhere from five
Speaker 1: million to a billion to begin to build a cushion
Speaker 1: or a reserve for consumer credit card losses maybe next year.
Speaker 1: We have not yet seen on the commercial industrial loan
Speaker 1: book any distressed industries, and that's been a run rate
Speaker 1: products for the last five years or so where we
Speaker 1: never really focus on a distress industry. To overall, the
Speaker 1: credit situation actually looks good. But one important thing I
Speaker 1: think for for listeners here is that the banks always
Speaker 1: lend to the best bars, including consumers with high psycho scores,
Speaker 1: and what happens with the saddlebanks might be the first
Speaker 1: cracks that we see what a weakening consumer interesting. Ken
Speaker 1: Ley on great to get your thoughts as we await
Speaker 1: those earnings. Starting with JP Morgan and Wells Fargo. Uh,
Speaker 1: then we'll hear from Morgan Stanley and City Group Oll
Speaker 1: cap things off for us as the first four of
Speaker 1: the Big six report just today, and ken Leon is
Speaker 1: going to be with us throughout this morning as those
Speaker 1: results come in. Ken leyon, director of Equity Research at
Speaker 1: CF are a part of our coverage of bank earnings
Speaker 1: Friday this morning, So check back with Bloomberg Radio and
Speaker 1: Bloomberg Television as we keep things going here with the
Speaker 1: banks reporting kicking off third quarter earning season. Looking ahead
Speaker 1: to the market open this morning, Uh, some churn in
Speaker 1: the futures. SMP futures are now higher by three points
Speaker 1: down futures up sixties seven NASDAC future is still in
Speaker 1: the red, but not by much, now down seven points.
Speaker 1: Tenure Treasury is up twelve thirty seconds, yield three point
Speaker 1: eight nine percent, yield on the two year four point
Speaker 1: four one percent. British Pound trading at one point one
Speaker 1: to six eight on reports UK Time Minister Liz Trust
Speaker 1: may reverse some of her mini budget. This is Bloomberg
Speaker 1: Bloomberg eleven three oh Weather clearing this afternoon with highs
Speaker 1: in the upper sixties, will be sunny tomorrow, high near
Speaker 1: seventy upper sixties once again on a partly sunny Sunday.
Speaker 1: Right now, it's fifty four degrees in Central Park. Broadcasting
Speaker 1: live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg E Living Free to Washington, d C. Bloomberg On
Speaker 1: to Boston, Bloomberg one O six one to San Francisco,
Speaker 1: Bloomberg NOME sixteen to the Country Sirius XM Gentle one
Speaker 1: nineteen and around the globe the Bloomberg Business Act and
Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak six thirty
Speaker 1: on Wall Street. Good morning, I'm Nathan Hagar and I'm
Speaker 1: Karen Moscow. We are just about three hours away from
Speaker 1: the open of US trading. Time to the five Things
Speaker 1: you need to Notice start your day. Brought to you
Speaker 1: by Interactive Brokers. Interactive Brokers charges margin loan rates from
Speaker 1: three point five eight percent to four point five eight
Speaker 1: percent rate subject to change. Learn more at i dk
Speaker 1: R dot com slash timpare. First, we enter the week's
Speaker 1: final trading session, coming off a volatile day. The S
Speaker 1: and P fell two point four percent after yesterday's CPI reading,
Speaker 1: only to close up two point six percent, Lori Calvasino's
Speaker 1: head of US equity strategy at RBC Capital Markets, you
Speaker 1: have to really look stock by stocks, sector by sector,
Speaker 1: different parts of the market, figure out where you think
Speaker 1: most of the bad news is baked and where you
Speaker 1: want to be for the longer term, and start layering
Speaker 1: in and it may go down more before it goes
Speaker 1: back up. Lori Calvasino with RBC says, we likely have
Speaker 1: not seen a bottom yet and yesterday's turnaround maybe short
Speaker 1: lived here. And that's according to Bank of America. That
Speaker 1: firm strategists say stock markets in the U s economy
Speaker 1: will have to experience more pain before the Fed pivots
Speaker 1: away from aggressive tightening. They don't expect the bottom until
Speaker 1: next year. The White House. Meantime, Nathan was grasping for
Speaker 1: upside after US inflation rose to a forty year high
Speaker 1: last month. President Biden spoke to reporters in Los Angeles.
Speaker 1: We also need to make more progress bringing down the
Speaker 1: prices across the board. That's why I just couldn't disagree
Speaker 1: more with my Republican friends who say the biggest problem
Speaker 1: our economy right now is it working. Folks are making
Speaker 1: too much money. President Biden also says too many Americans
Speaker 1: are being squeezed by the current cost of living. Okay,
Speaker 1: Let's saw corporate earnings now, Karen JP, Morgan's City Group,
Speaker 1: Morgan Stanley, and Wells Fargo all report before the market
Speaker 1: opens today. Banks are expected to post the biggest profit
Speaker 1: decline of any sector this quarter as analysts turns sour
Speaker 1: on the outlook for financials. Will also be watching for
Speaker 1: how much cash firms are setting aside for potentially bad
Speaker 1: loans and turning overseas Nathan, it looks like the UK
Speaker 1: government will abandon its plans for a massive tax CONTs.
Speaker 1: Bloomberg News has learned Prime Minister List Trust will reverse
Speaker 1: parts of our economic strategy. As the Bank of England
Speaker 1: ends its emergency bond buying program today, we spoke with
Speaker 1: former bo E member Martin Wheeley about the central bank
Speaker 1: putting pressure on the government. Drew Bailey has given some
Speaker 1: thought to the question of what help might be needed
Speaker 1: next week and in what circumstances that could probably be
Speaker 1: done without continuing the current steam in operation, and a
Speaker 1: former Bank of England member, Martin Wheeley says reversing the
Speaker 1: plan for massive tax cuts would restore the UK government's credibility.
Speaker 1: According to the Telegraph, Trust will instead announce an increase
Speaker 1: in corporate taxes to a rate of We are watching
Speaker 1: his headline across the Bloomberg with the Times reporting that
Speaker 1: Cortang is being sacked as chancellor. And again that's being
Speaker 1: reported by the Times. Okay, Karen, Thanks, six thirty three
Speaker 1: Now on Wall Street where fifty four degrees in Central
Speaker 1: Park and Michael Barr has war on what's going on
Speaker 1: in New York and around the world. Michael, good morning,
Speaker 1: Good morning, Nathan. The House committee investigating last year's attack
Speaker 1: on the US Capitol voted to subpoena Donald Trump. The
Speaker 1: committee and a unanimous vote, agreed to demand documents and
Speaker 1: testimony Trump about his role in the January sixth attack.
Speaker 1: Committee chairman Benny Thompson, he is the one person at
Speaker 1: the center of the story of what happened on January six,
Speaker 1: so you want to hear from him. In a post
Speaker 1: on his Truth social platform overnight, Trump said, I will
Speaker 1: be putting out my response to the unselect committee of
Speaker 1: political hacks and thugs later this morning. The U s.
Speaker 1: Supreme Court handed former President Donald Trump a loss in
Speaker 1: his fight over records the FBI seas from his Mara
Speaker 1: lago of state. The High Court refused to intervene and
Speaker 1: reinstate a special master's authority to review a set of
Speaker 1: key documents with classified markings. Authorities in Connecticut say to
Speaker 1: Bristol police officers who was shot dead had apparently been
Speaker 1: drawn into an ambush my emergency call about possible domestic violence.
Speaker 1: The third officer was wounded in the gunfire. Late Wednesday night,
Speaker 1: Governor Ned Lamott said there are too many illegal guns
Speaker 1: and not enough cops on the streets. Just a reminder
Speaker 1: what the men in blue, men and women in blue
Speaker 1: do every day on our behalf to keep us safe
Speaker 1: and the risk they take. Governor Lamont ordered all us
Speaker 1: and stayed flags lowered two half staff. A shooting opened fire.
Speaker 1: You know. A shooter opened fire along a walking trail
Speaker 1: and a rally, North Carolina neighborhood, killing an off duty
Speaker 1: police officer and four others. Police said the suspect was arrested.
Speaker 1: North Carolina Governor Roy Cooper, this is a senseless, horrific,
Speaker 1: an infuriating active violence that has been committed. Authority has
Speaker 1: been only described the suspected shooter as a white male juvenile.
Speaker 1: A Florida jury rejected the death penalty for the person
Speaker 1: responsible for the teen Parkland school shooting that left seventeen
Speaker 1: students and staff dead. The jury, who needed a unanimous
Speaker 1: vote for capital punishment, instead recommended a sentence of life
Speaker 1: without parole. Many family members of the vitims were stunned.
Speaker 1: Patricia Oliver's son Joachin, was shot in the head by
Speaker 1: Cruz and says her son will not get justice. The
Speaker 1: only one who got the way to get out of
Speaker 1: this was the defendant. The jury's foreman says, three voted
Speaker 1: against the death penalty. Global nemes twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than seven hundred journalists and analysts more than a hundred
Speaker 1: twenty countries. Michael bar this is Bloomberg, Navid, Michael thanks
Speaker 1: almost six thirty six On Wall Street. John Stanshower has
Speaker 1: the Bloomberg Sports updates, makes Nathan Day Baseball in the
Speaker 1: Bronx one o'clock start, Yankees Guardians Game two, and Esta
Speaker 1: Cortez and Shane Bieber. Last night's rain out means no
Speaker 1: more off days in the series. Astros and Maritors played
Speaker 1: Game two and Houston Seattle, who blew up four run
Speaker 1: lead in Game one, had a lead in the sixth
Speaker 1: Nae won albats punish just want good five and the
Speaker 1: Langius Crawford Foxes pretty too. You're not Baby Yammy. Albert
Speaker 1: has had the walk off three run shot to what
Speaker 1: the opener, and the Astros won forward it too. They
Speaker 1: leave the series to nothing. Game three is tomorrow will
Speaker 1: be the first postseason game in Seattle in twenty one years.
Speaker 1: This afternoon is the first one in Philadelphia in eleven years.
Speaker 1: Phillias and Braves. They're tied to one, so the Dodgers
Speaker 1: and Padres. They played tonight in San Diego. The day
Speaker 1: began for the Washington Commanders with an explosive ESPN report
Speaker 1: the team's owner Dan Snyder has not been forced out
Speaker 1: by fellow owners because he has dirt on several of
Speaker 1: them and on Commissioner Roger Goodell, and that he can
Speaker 1: quote blow up the NFL if they try to force
Speaker 1: them out. Snyder has already been fined and suspended for
Speaker 1: his actions as team owner. The Commanders then played their
Speaker 1: Thursday night game in Chicago. They held on to win
Speaker 1: twelve to seven. The Bears had a first and goal
Speaker 1: at the Washington five in the final minute, but couldn't score.
Speaker 1: Both teams are two and four. The Rangers are two
Speaker 1: and oh seven. Three round in Minnesota, three goals in
Speaker 1: the first period, three more than the third. Chris Cryer
Speaker 1: scored twice or Timmy pannerin a goal free assists. Rangers
Speaker 1: play again tonight in Winnipeg. The Islander opener was a
Speaker 1: three one home lost to Florida Devils. Gave up four
Speaker 1: Street goals, lost five to at Philadelphia Nicks and Nets
Speaker 1: of their preseason finale. Attendant John Stash went Bloomberg Sports
Speaker 1: Nathan all Right, John, thank you to six thirty seven
Speaker 1: on Wall Street on what is about to be a
Speaker 1: very busy morning for Allison Williams, senior analysts for Global
Speaker 1: investment banks at Bloomberg Intelligence, awaiting the first four of
Speaker 1: the big six Wall Street firms to report earnings before
Speaker 1: the opening bell. Allison's with us now starting off with
Speaker 1: JP Morgan. Of course, Allison, let's go through these banks
Speaker 1: one by one. What are you looking for? At JPM.
Speaker 1: We're looking for a very strong net interest income growth
Speaker 1: at all the banks, and we do think that banks
Speaker 1: such as JP Morgan and City Group, could UM increase
Speaker 1: their guide for the full year two UM. I don't
Speaker 1: think that's the focus though. I think the focus is
Speaker 1: really what's going to be happening with provisions. What can
Speaker 1: provisions tell us about how the banks are thinking about
Speaker 1: in terms of economic risk? For three, do you think
Speaker 1: a resiliency for the consumer might be something to keep
Speaker 1: the banks resilient at least for this quarter? I do
Speaker 1: think that. I think we're going to see UM strength
Speaker 1: in terms of spending. We're gonna see loan growth UM
Speaker 1: somewhat slowing for all the banks, but still healthy. And
Speaker 1: UM credit we also think remains strong. There's UM you know,
Speaker 1: maybe some pockets of weakness on the lower end, but
Speaker 1: that's a smaller part of the business for these big banks.
Speaker 1: Apart from JP Morgan, of course, we'll hear from Wells
Speaker 1: Fargo later on this hour as well. What's the main
Speaker 1: point you're looking for from Wells UM so again strong
Speaker 1: net interest income, UM, consumer everything that we just discussed
Speaker 1: UM for a whiles. Fargo in particular, what's happening on
Speaker 1: the cost side. Wells Fargo is going to have positive
Speaker 1: operating leverage this year. We expect that's something that a
Speaker 1: lot of the other banks are not going to have.
Speaker 1: Somewhat of a reason for that is their skew towards
Speaker 1: net interest income. But they've also been making structural costs
Speaker 1: to improve their returns, and that's what the focus with
Speaker 1: Wells and with Morgan Stanley to follow. A lot of
Speaker 1: the focus there, I would have to think is on
Speaker 1: the investment banking side. It is, but I think the
Speaker 1: new news we're gonna be looking at is on the
Speaker 1: cost side, because we know that from a revenue perspective,
Speaker 1: UM obviously, just looking at the markets, fees are going
Speaker 1: to be UM way down. Equity trading, which is the
Speaker 1: area that they're relatively stronger in UM is not going
Speaker 1: to be the story of this quarter. The story is
Speaker 1: going to be thick. They will get a benefit from
Speaker 1: fixed which is fixed income trading, so some cross currents
Speaker 1: on revenue, but UM generally going to be lower. So
Speaker 1: what does that mean for the cost side of things?
Speaker 1: What are they doing on the compensation appruals and will
Speaker 1: they pull back some on discretionary spending. That's that was
Speaker 1: something that they had flagged as a potential profit lever
Speaker 1: all Right, Allison Williams of Bloomberg Intelligence. Stick with us.
Speaker 1: We are expecting those first earnings to come out in
Speaker 1: the next few minutes from JP Morgan and Wells Fargo.
Speaker 1: So alisonbi with us in the minutes ahead to break
Speaker 1: down those results as they crossed the Bloomberg terminal. Looking
Speaker 1: into the market. Open futures have turned higher now. SMP
Speaker 1: futures are up seven points, STOUT futures of ninety two,
Speaker 1: NASADAC futures up four points. You're listening to Bloomberg Daybreak
Speaker 1: Bloomberg eleven three oh Weather clearing today with highs in
Speaker 1: the upper sixties, will be sunny to start the weekend.
Speaker 1: Tomorrow's high near seventy. Call it partly sunny for Sunday,
Speaker 1: upper sixties for highs right now fifty four in Central
Speaker 1: Park Markets. Headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot Com, the Bloomberg Business Out and
Speaker 1: at Bloomberg Quicktake. He's a Bloomberg Business Flash and I'm
Speaker 1: far in Moscow. This updates brought to you by Seist Managers,
Speaker 1: uh Mature, brought to you by Interactive Brokers Mistake ibk
Speaker 1: R Event Trader offers a new way to trade futures.
Speaker 1: Use event contracts to trade your opinion on yes or
Speaker 1: no questions and key CM futures markets. Learn more at
Speaker 1: event trader dot Interactive Brokers dot com. Well, we are
Speaker 1: watching earnings crossing the Bloomberg. We're gonna have more on
Speaker 1: that in just a few minutes, but we are hearing
Speaker 1: from JP Morgan Chase and Whilst Fargo. We're also watching
Speaker 1: the pound is a transits losses against the US dollar
Speaker 1: after a tweet from the Times that UK Chancellor Quasi
Speaker 1: Quartang is being sacked. This in preparation for a U
Speaker 1: turn on Prime Minister Liz Trust's economic policy. Futures meanwhile,
Speaker 1: are higher, and we go to the First Word Breaking
Speaker 1: news desk for today's morning call with Bill Maloney. Bill,
Speaker 1: good morning, Hey, good morning, Karen. That's right. US futures
Speaker 1: with a modest bid right now, with Doubt futures up
Speaker 1: a hundred and fifteen points, sesamees gains ten and Nesta
Speaker 1: futures are higher by a point. The US chen yield
Speaker 1: at three point nine percent, Gold is down eleven, oil
Speaker 1: is in the red, and bitcoin is trading higher by
Speaker 1: one point six percent. Japan rose three point three percent overnight,
Speaker 1: while up markets are posting one percent across the board
Speaker 1: and back in the US on the economic front at
Speaker 1: a thirty retail Sales and at ten o'clock Michigan Sentiment.
Speaker 1: Regarding earnings, you mentioned JP Morgan and Wells Fargo. They
Speaker 1: both just reported revenue beat estimates for both companies, and
Speaker 1: United Health beat and raised its full year outlook. Wrapping
Speaker 1: things up north for progomming was cut to neutral over
Speaker 1: ed JP Morgan Live from the first to breaking news Descomb,
Speaker 1: Bill Maloney care alright, Bill, thank you to hear live
Speaker 1: breaking news over here. Bloomberg Time squawk on your terminal
Speaker 1: squ a w K again more on those earnings in
Speaker 1: just a moment from now, and again UK Chancellor Quasi
Speaker 1: Quark Tang is being sacked in preparation for a U
Speaker 1: turn on Prime Minister list. Trust is economic policy that
Speaker 1: according to a tweet from the Times and as a
Speaker 1: Bloomberg business flash, now it's time for a check of
Speaker 1: what's going on around the world, and here's Michael Barr. Michael,
Speaker 1: thank you very much. Jar In the House. January six,
Speaker 1: Committee wrapped up yesterday's public hearing with the call to
Speaker 1: subpoena former President Trump. Trump responded saying the UNSOLID committee
Speaker 1: is a giant scam. Meanwhile, former President Trump is offer
Speaker 1: another setback and the Mara Logo documents investigation. The Supreme
Speaker 1: Court has refused to get involved in a dispute over
Speaker 1: whether a third party should review those classified documents sees
Speaker 1: by the FBI and Baseball. The Yankees will play the
Speaker 1: Guardians in Game two of their A l d S.
Speaker 1: The Astros lead too games zip over the Mariners in
Speaker 1: their A l DS after last night's four to win
Speaker 1: Thursday Night Football Commanders beat the Bears twelve seven NHL,
Speaker 1: the Rangers one, Devil's Islanders and Capitals lost. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quicktake power by more than the journalists and analysts more
Speaker 1: than a hundred twenty countries. Michael bar this is Bloomberg, Nathan.
Speaker 1: Thank you, Michael. We are live from the Bloomberg Interactive
Speaker 1: Brokers studios, where it's coming up to six fifty on
Speaker 1: Wall Street as we continue to watch headlines cross the
Speaker 1: Bloomberg terminal from JP Morgan Chase and Wells Fargo, both
Speaker 1: reporting earnings beats this morning let's bring back Bloomberg's Global
Speaker 1: Global Investment Banks Senior analyst Alison Williams. Watching these headlines
Speaker 1: cross this morning. UH, solid beats all around, it looks
Speaker 1: like Allison, So the big story so far looks like
Speaker 1: the very strong net interest income and so that was
Speaker 1: something that UM, you know, the company itself had had
Speaker 1: hinted that their full year guidance might go up. UM
Speaker 1: numbers coming in better for both these banks. We expect
Speaker 1: the same thing from City Group also on JP Morgan
Speaker 1: better fixed income trading, equity trading a little light, but
Speaker 1: net net still positive. M and A f is coming
Speaker 1: in better than expected. That's also good. UM. Looking at
Speaker 1: the low lost provision, that lost provision is a bit higher, UH,
Speaker 1: current charge offs are lower. So good strong credit that
Speaker 1: we're seeing right now, but perhaps a little bit more
Speaker 1: conservative about the outlook. Now. We've seen JP Morgan shares
Speaker 1: jump as high as I think about one point seven
Speaker 1: percent on those results. Now they're appearing some of those
Speaker 1: gains interesting as well. Allison, to see this headline that
Speaker 1: Wells Fargoes quarter included a two billion dollar loss on
Speaker 1: regulatory matters and other costs. That is exactly the number
Speaker 1: that I was just looking at UM. So, you know,
Speaker 1: Wells Fargo, when are we going to get past these
Speaker 1: sizeable charges? We keep thinking we're past the worst UM
Speaker 1: and we keep getting them. I mean, it's on the
Speaker 1: core basis for Wells Fargo. The story about improving costs
Speaker 1: looks like that they're still continuing to execute. But when
Speaker 1: are we going to get these regulatory um issues, these
Speaker 1: regulatory costs behind the bank. Also seeing that JP Morgan
Speaker 1: CEO Jamie Diamond says he hopes to resume BUYBAX early
Speaker 1: next year. What's your read on that? That's a positive?
Speaker 1: You know. One of the things, uh, one of the
Speaker 1: big surprises that we got this year for all the banks,
Speaker 1: well at least for JP Morgan Bank of American City.
Speaker 1: We did see a big increase in their capital ratios
Speaker 1: that's coming to bear this quarter. But then we have
Speaker 1: increases also across several banks that we're expecting uh in
Speaker 1: twenty twenty three. The fact that they are building capital,
Speaker 1: getting above those ratios and able to begin buy backs,
Speaker 1: that's a key positive for the banks. Bloomberg's Bloomberg Intelligence
Speaker 1: Senior analysts for Global Investment banks, Allison Williams breaking down
Speaker 1: the JP Morgan and Wells Fargo results as they continue
Speaker 1: across the Bloomberg terminal. Be checking back with you throughout
Speaker 1: the morning here on Bloomberg Radio six fifty two. Now
Speaker 1: on Wall Street. Usually time to check what's going on
Speaker 1: in d C. But the big story is happening this
Speaker 1: morning in the capital of the United Kingdom, where the
Speaker 1: Chancellor Quasi Quartang has just gotten back from Washington, and
Speaker 1: reports have it he may be out of a job.
Speaker 1: Joining us now Bloomberg opinion columnist Marcus Ashworth as we
Speaker 1: await details on the U turn from Prime Minister Liz
Speaker 1: Trust big U turn. It looks like, Marcus, I was
Speaker 1: just thinking, listen to Alison, that I was to be
Speaker 1: able to look at a very opaque, really public questions.
Speaker 1: I mean, what is going on? I mean, my lord,
Speaker 1: the simple rule here is that he can't present a
Speaker 1: budget which people can understand, appreciate or get along with.
Speaker 1: You shouldn't be in politics, and I'm fartually unfortunately Quasi Quarte,
Speaker 1: remember the brightest guy in many different rooms, but he
Speaker 1: is not a politician, and he unfortunately looks like he's
Speaker 1: going to be a defllustrated about the expression the chat
Speaker 1: is that either Terres Coffee is currently the sort of
Speaker 1: defintely Prime Minister, but really the Health Secretary or indeed
Speaker 1: a blastem of past Jeremy Hunt, the MP quite close
Speaker 1: to our live um might be pulled back from the
Speaker 1: backbenches UM and board on his chancellor. But certainly they
Speaker 1: are going to have to rejig make the numbers add
Speaker 1: up join in the middle. And clearly the guilt market
Speaker 1: is is loving it. There's an assid buy back the
Speaker 1: last one to day. We'll see that load of this afternoon.
Speaker 1: But you know, really all eyes on the politics because
Speaker 1: if they take back particularly the corporation tax saying it
Speaker 1: may make the numbers joined a little bit year and
Speaker 1: that really is what people want to see funded budget
Speaker 1: where people can understand when the money is come because
Speaker 1: they are going to be a lot more money this year.
Speaker 1: People have to make sure they understand where it's all
Speaker 1: coming from and how it's funded. But in terms of
Speaker 1: when currency traders are looking for Marcus, I have to
Speaker 1: think that they want to see that the budget is
Speaker 1: coming in a little bit closer than just a little
Speaker 1: bit of a gap moving in well maybe, but I
Speaker 1: mean the point is is that there's all this would
Speaker 1: have been possible always that the government new governments trying
Speaker 1: to could be probble if they've just gone about it
Speaker 1: in the right way. Announcing a top rate tax cub
Speaker 1: and indeed bank of bonus things. If you could have
Speaker 1: done that a year's time and it wouldn't have no
Speaker 1: one of bed Blatton Island. They could have done things
Speaker 1: and roll the pitch made us aware of what's going on.
Speaker 1: And they literally needed to wait for the Office four
Speaker 1: Budget Responsibility, which marks the homework to make sure the
Speaker 1: government finances make sense. And because it shifted it from
Speaker 1: a three year horizon to a five year horizon, they're
Speaker 1: going to all the scene. It's a presentational problem. Unfortunately, No,
Speaker 1: I'll have to row back on all the good things
Speaker 1: that they might have been doing for economic growth and
Speaker 1: go back to where we were before, which I think
Speaker 1: was actually run us under the previous chance Serbroty snack,
Speaker 1: you know, hiking taxes on corporations. Indeed, I think that
Speaker 1: they're being will touched this. They'll keep this reverse up
Speaker 1: in the middle of a recession or it's not the
Speaker 1: right thing to have done. But there we go back
Speaker 1: back in the future. Yeah, we'll see where the future
Speaker 1: goes with Let's trust the Prime Minister expected to hold
Speaker 1: a news conference nine am Wall Street time on the
Speaker 1: reports of the Chancellor. Quasi Quartean could be out. Bloomberg
Speaker 1: copinion columnist Marcus Ashworth thanks for this, appreciate you coming
Speaker 1: on with us. Karen, all right, Nathan, thank you. It
Speaker 1: is six fifty six on Wall Street. Let's turn to
Speaker 1: news now in science and technology with the Bloomberg and
Speaker 1: j I T STEM Report. It is run to you
Speaker 1: by New Jersey Institute of Technology n j I T
Speaker 1: and ACE industry ready engineers and more than twenty fields.
Speaker 1: If it's engineering, it's at n j I T. What
Speaker 1: will you make at n j I T. Learn more
Speaker 1: at n j I T dot E d U. Well,
Speaker 1: here's what's making news and science, technology, engineering and math.
Speaker 1: The Antarctic ozone whole last week peaked at a moderately
Speaker 1: large size for the third straight year, bigger than the
Speaker 1: size of North America, but experts say it's still generally
Speaker 1: shrinking despite recent blips because of high altitude cold cold weather.
Speaker 1: The ozone hole hit its peak size of more than
Speaker 1: ten million square miles earlier this month. NASA says as
Speaker 1: the largest it's been since. Scientists say because of cooler
Speaker 1: than normal temperatures over the southern polar regions at seven
Speaker 1: to twelve miles high where the ozone hole is, conditions
Speaker 1: are ripe for ozone munching chlorine chemicals and Meta Platforms
Speaker 1: is urging a judge to reject the US Federal Trade
Speaker 1: Commission's attempt to block the company's acquisition of virtual reality
Speaker 1: app Within Unlimited, not to argue the FTC has not
Speaker 1: laid out the elements to slow the show. The deal
Speaker 1: announced last year but hurt potential competition and is still young.
Speaker 1: VR Fitness Space and Apple and Golden Sacks are teaming
Speaker 1: up to offer savings accounts the users of the tech
Speaker 1: company's credit card. The move builds on the existing credit
Speaker 1: card partnership between the two companies. And that's the Bloomberg
Speaker 1: and j I t Stem report. And again futures this
Speaker 1: morning are on the rise. We continue to watch that
Speaker 1: story the suite that UK Chancellor Quasi Quarteng is being sacked.
Speaker 1: He's going to be out in preparation for a U
Speaker 1: turn on Prime Minister list Trust is economic policy. They
Speaker 1: will continue to discuss that story and delve into it
Speaker 1: on Bloomberg Surveillance, which is a straight ahead. They're also
Speaker 1: going to be looking into the earnings we got this
Speaker 1: morning from JP Morgan, Chase and Whiles Fargo, among others,
Speaker 1: and for Nathan Hagar. I'm Karen Moscow and this is
Speaker 1: Bloomberg