WEBVTT - Bloomberg Daybreak: October 19, 2022 - Hour 1 (Radio) 0:00:02.400 --> 0:00:05.840 Live from the Bloomberg Interactive Burger Studios is Bloomberg day 0:00:05.840 --> 0:00:09.719 Break for Wednesday, October two. Coming up this hour. The 0:00:09.880 --> 0:00:11.840 S and P five hundred looks to make it three 0:00:11.960 --> 0:00:15.160 straight winning sessions to start the week. Netflix share sure 0:00:15.320 --> 0:00:17.759 as use a growth signals the worst is over. In 0:00:17.800 --> 0:00:21.920 the UK, inflation surges to double digits, and President Boden 0:00:22.040 --> 0:00:25.320 plans to announce he's tapping into the strategic oil reserves. 0:00:25.600 --> 0:00:28.680 The latest polls show New York's governor's race has tightened, 0:00:28.880 --> 0:00:31.680 plus Georgia voters turned out in record numbers on the 0:00:31.680 --> 0:00:34.720 first day of early ballots. I'm Michael lar More Ahead, 0:00:34.920 --> 0:00:37.600 I'm John stash Our and sports. The Yankees beat the Guardians, 0:00:37.600 --> 0:00:39.760 they start the Alcs tonight and used to the Philly 0:00:39.800 --> 0:00:44.760 shut out. The Padres wins with the Devil's Islanders. That's 0:00:44.800 --> 0:00:48.040 all s Trendy ahead on Bloomberg day Break on Bloomberg 0:00:48.120 --> 0:00:52.000 eleven three on New York, Bloomberg N one, Washington, d C, 0:00:52.479 --> 0:00:56.760 Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, 0:00:57.240 --> 0:01:00.160 Sirius x M one nineteen and around the world Old 0:01:00.240 --> 0:01:03.720 on Bloomberg Radio dot Com and via the Bloomberg Business app. 0:01:07.360 --> 0:01:10.440 Good morning, I'm Nathan Hagar and I'm Karen Moscow US 0:01:10.520 --> 0:01:13.160 dot Index Future. It's little change this morning. We're coming 0:01:13.240 --> 0:01:14.720 up to five oh one on Wall Street, and we 0:01:14.800 --> 0:01:17.280 check the markets every fifteen minutes throughout the trading day 0:01:17.360 --> 0:01:21.160 on Bloomberg. Right now, SMP Futures little change down. Futures 0:01:21.200 --> 0:01:24.639 down thirty five, Nowsday Future is up seventeen. The decks 0:01:24.640 --> 0:01:27.240 in Germany is down two tenths of a percent, ten 0:01:27.319 --> 0:01:30.080 year Treasury down thirteen thirty seconds. You had four point 0:01:30.080 --> 0:01:32.240 oh six percent. They yield on the two year four 0:01:32.319 --> 0:01:35.320 point four eight percent, and NIMEX screwed oil is up 0:01:35.319 --> 0:01:37.800 about a third of a percent at eighty three dollars 0:01:37.840 --> 0:01:41.000 eleven cents of barrel. Nathan Karen the SMP five hundreds. 0:01:41.000 --> 0:01:43.319 Coming off back to back winds to start the week, 0:01:43.400 --> 0:01:45.880 the index is up three point eight percent in just 0:01:46.080 --> 0:01:50.600 two days. However, Max Kettner, chief multi asset strategist at HSBC, 0:01:50.800 --> 0:01:53.680 thinks stocks will remain under pressure and the FED will 0:01:53.760 --> 0:01:56.440 not change course. But the point for me is that 0:01:56.960 --> 0:01:59.720 the FED is really only going to pivot in my view, 0:02:00.120 --> 0:02:03.240 when things are going to go horribly wrong. Not just wrong, 0:02:03.440 --> 0:02:06.760 but really and I have to emphasize that horribly wrong. Right, 0:02:07.120 --> 0:02:09.600 So it will not be sufficient if we see you 0:02:09.680 --> 0:02:13.120 one to three months off a bit worse than economic data, 0:02:13.240 --> 0:02:15.720 right and oh maybe we're going to go into recession now, 0:02:16.080 --> 0:02:19.440 that will not be sufficient. HSBC's Max Kettner says he 0:02:19.480 --> 0:02:22.400 would fade this rallying stocks well, Nathan. The rise in 0:02:22.440 --> 0:02:25.239 equities this week has been fueled by a solid starter 0:02:25.360 --> 0:02:28.320 earning season, and it continued after the bail with Netflix. 0:02:28.360 --> 0:02:31.280 The streaming leader added a better than expected two point 0:02:31.320 --> 0:02:34.560 four million customers in the third quarter. Read Hastings is 0:02:34.639 --> 0:02:37.959 co founder and sherman of Netflix. Well, thank god, we're 0:02:38.000 --> 0:02:42.359 done with shrinking quarters. So the big feeling of we're 0:02:42.400 --> 0:02:45.080 back to the positivity. We still got f X, so 0:02:45.200 --> 0:02:47.880 that's a huge hit. Uh, you know, as we've explained, 0:02:47.960 --> 0:02:51.920 so that's not going to go away. But other than that, 0:02:52.320 --> 0:02:55.040 all the stars are lining up very well for us 0:02:55.400 --> 0:02:58.399 Netflix Sherman read Hastings, as the company expects to add 0:02:58.400 --> 0:03:01.640 another four and a half million mobile subscribers this period 0:03:01.720 --> 0:03:04.760 despite headwinds from foreign exchange. Well, let's look at some 0:03:04.800 --> 0:03:07.240 other stocks on the move following earnings. Karen's. Shares of 0:03:07.320 --> 0:03:09.680 United Airlines are up five and a half percent. The 0:03:09.720 --> 0:03:12.600 airline sees profit well above estimates in the final quarter 0:03:12.600 --> 0:03:14.640 of the year. That's being fueled by a rebound in 0:03:14.680 --> 0:03:17.480 corporate travel and leisure trips. We're also watching shares of 0:03:17.520 --> 0:03:21.680 Adobe this morning. The maker of creative design software reiterated 0:03:21.680 --> 0:03:24.040 its forecast for the current quarter, and that is relieving 0:03:24.120 --> 0:03:27.880 fears economic uncertainty would hinder demand. Well Up next Nathan, 0:03:27.919 --> 0:03:30.680 the earnings continue with results from twenty companies in the 0:03:30.800 --> 0:03:33.160 S and P five hundred. The biggest name on today's 0:03:33.200 --> 0:03:36.080 list is Tesla. We get a preview of those numbers 0:03:36.080 --> 0:03:39.680 from Bloomberg's Jeff Bellinger. Shares of the electric car maker 0:03:39.720 --> 0:03:43.000 have been under pressure ever since the company reported third 0:03:43.080 --> 0:03:47.040 quarter delivery figures that fell short of forecast. Today's report 0:03:47.080 --> 0:03:51.040 will get close scrutiny. Investors will look beyond sales, earnings 0:03:51.040 --> 0:03:54.640 and profit margins. Bullish fourth quarter delivery guidance would be 0:03:54.760 --> 0:03:59.840 especially welcome Bloomberg Intelligence, as the plunge in Tesla's stocked 0:04:00.040 --> 0:04:02.160 could make this a good time for the company to 0:04:02.360 --> 0:04:07.040 initiate capital returns without hurting its balance sheet. Jeff Bollinger 0:04:07.200 --> 0:04:10.400 Bloomberg Daybreak, Thanks Jeff. Turning to the economy now, do 0:04:10.480 --> 0:04:12.720 not look for a pause in rate hikes from the Fed. 0:04:12.800 --> 0:04:16.000 That's according to Minneapolis President Neil cash Kari, who says 0:04:16.040 --> 0:04:19.600 the central bank must continue tightening as inflation remains hot. 0:04:19.880 --> 0:04:23.520 If we don't see progress in underlying inflation or cor inflation, 0:04:24.320 --> 0:04:27.440 I don't see why I would advocate stopping at four 0:04:27.440 --> 0:04:29.360 and a half or four or seven five or something 0:04:29.400 --> 0:04:32.320 like that. Minneapolis Fed President Neil cash car He says 0:04:32.360 --> 0:04:36.679 he sees interest rates reaching the mid fource early next year. Meantime, Nathan, 0:04:36.680 --> 0:04:38.960 the Fed will hand out a grade on the health 0:04:39.000 --> 0:04:41.000 of the U S economy today with the release of 0:04:41.000 --> 0:04:43.719 its Regional Beige Book. We get more from Bloomberg if 0:04:43.720 --> 0:04:47.720 any down junis. Today's bache book, based on anecdotal reports 0:04:47.720 --> 0:04:50.279 in the Fitch twelve district banks, will help set the 0:04:50.360 --> 0:04:54.760 stage for November's policy meeting. Bloomberg Economics notes the prior 0:04:54.839 --> 0:04:59.000 biche book and early September indicated little change, unbalanced the 0:04:59.040 --> 0:05:03.120 most lackluster, showing you a pandemic recovery but not yet alarming. 0:05:03.440 --> 0:05:06.400 The next FED policy session is set for November one 0:05:06.600 --> 0:05:09.360 and second, and a kind of wist anticipated another interest 0:05:09.440 --> 0:05:13.320 rate hike aimed at containing inflation. Beneath Bill Judas Bloomberg, 0:05:13.360 --> 0:05:15.920 daybreak of any thanks, we're also seeing inflation store in 0:05:15.960 --> 0:05:18.920 the UK. For more on today's red hot price reading, 0:05:18.960 --> 0:05:21.320 let's go live to London and check in with Bloomberg's 0:05:21.400 --> 0:05:24.719 James Walcock, Good morning, James, Good morning, Nathan and Karen Sawing. 0:05:24.760 --> 0:05:28.159 Inflation indeed, price rises hit a four decade high of 0:05:28.240 --> 0:05:30.480 ten point one percent year on year through September. That's 0:05:30.520 --> 0:05:33.719 slightly above what economists forecast. It's a call to arms 0:05:33.760 --> 0:05:35.560 for the Bank of England after the central Bank has 0:05:35.560 --> 0:05:38.320 found itself distracted by chaos in the UK bond market. 0:05:38.800 --> 0:05:41.960 September's inflation figure is also used as the baseline to 0:05:42.000 --> 0:05:45.359 increase state welfare payments and pensions, so that increase puts 0:05:45.360 --> 0:05:48.240 more pressure on the UK government's fiscal policy as promised. 0:05:48.279 --> 0:05:50.239 Of this Trust tries to bounce the books in London. 0:05:50.320 --> 0:05:52.800 James Walcock, bloom bog daybreak, All right, James, thank you. 0:05:52.839 --> 0:05:55.520 Back here in the US, the Biden administration is making 0:05:55.600 --> 0:05:58.640 more moves to lower gas prices. Later today, the President 0:05:58.680 --> 0:06:01.760 announces another fifteen million barrels coming out of the Strategic 0:06:01.800 --> 0:06:05.359 Petroleum Reserve, but still Bob McNally, founder and president of 0:06:05.440 --> 0:06:08.559 Rapid and Energy, says it might not be enough going 0:06:08.600 --> 0:06:11.919 against OPEC plus with the sprs like going into a 0:06:12.040 --> 0:06:14.440 fight with you know, the guys with a with a 0:06:14.440 --> 0:06:17.280 square guns. Right. It's a finite resource. You get to 0:06:17.360 --> 0:06:19.120 use it once, and I think this is going to 0:06:19.200 --> 0:06:21.920 make the coming boom cycle in oil prices even boom. Here. 0:06:22.320 --> 0:06:25.480 Rapid Down Energy president Bob McNally spoke of their Washington 0:06:25.520 --> 0:06:29.120 correspondent Joe Matthew on Bloomberg Sound on Catch the program 0:06:29.120 --> 0:06:32.320 weekdays at five pm Eastern on Bloomberg Radio and checking 0:06:32.520 --> 0:06:34.720 crude prices right now, and I'm ex screwed. Oil is 0:06:34.760 --> 0:06:37.320 a four ten percent and eighty three dollars fourteen cents 0:06:37.320 --> 0:06:40.760 of barrel Brent is at ninety eight cents. Finally, Karen 0:06:40.800 --> 0:06:44.240 criticism of the PIMCO Total Return Bond Fund from the 0:06:44.240 --> 0:06:46.840 man who created it. We're talking about Bill Gross, who 0:06:46.880 --> 0:06:50.159 was ounced it from Pimco. Gross says many of the 0:06:50.200 --> 0:06:52.320 funds that bear the name are failing to live up 0:06:52.320 --> 0:06:55.800 to their mission after suffering heavy losses this year. Gros says, 0:06:55.839 --> 0:06:58.120 instead of helping the cushion the market downturn. They have 0:06:58.200 --> 0:07:02.040 clung to their benchmarks too close, Lee, essentially becoming quasi 0:07:02.120 --> 0:07:05.880 index tracking strategies. SMP future is right now, a little 0:07:05.960 --> 0:07:09.680 changed up two points now futures down one. Nasdaq futures 0:07:09.680 --> 0:07:12.400 are higher by thirty one points. Send your treasuries down 0:07:12.400 --> 0:07:15.440 eleven thirty seconds. The yield four point zero five percent. 0:07:15.960 --> 0:07:18.880 Local headlines and a check of sports. Up next. This 0:07:19.120 --> 0:07:25.080 is Bloomberg five oh seven on Wall Street, forty three 0:07:25.080 --> 0:07:27.600 degrees in Central Park, out of crash southbound New Jersey 0:07:27.600 --> 0:07:31.320 Turnpike truck lanes at exit seven. More coming up in traffic. 0:07:31.360 --> 0:07:33.320 First Michael Barr with more on what's going on in 0:07:33.360 --> 0:07:35.440 New York and around the world. Good morning, Michael, Good 0:07:35.440 --> 0:07:37.960 morning Nathan. Mid Terms that just a few weeks away, 0:07:38.000 --> 0:07:40.800 and now another race that Democrats once thought was a 0:07:40.920 --> 0:07:44.440 slam dunk could be in play in New York. Republican 0:07:44.560 --> 0:07:47.280 Lee's Elden is in a statistical dead heat with the 0:07:47.320 --> 0:07:51.880 Democratic governor Kathy hokel Bore from Bloomberg's Denise Paula Greeni, Michael, 0:07:51.920 --> 0:07:53.840 it kind of all depends on which poll you want 0:07:53.840 --> 0:07:56.120 to believe at this point, because the new Quinnipiac Pole 0:07:56.160 --> 0:08:00.000 shows hopelessly narrowing to just four percentage points her campaign 0:08:00.000 --> 0:08:03.560 in those says this Quinnipiac Pole undercounted likely Democratic voters. 0:08:03.720 --> 0:08:07.560 Former President Trump recently endorsed Zelden, and the Quinnipiac Pole 0:08:07.600 --> 0:08:11.400 shows Zelden has a solid lead among independents. The Long 0:08:11.440 --> 0:08:14.560 Island congressman also has gained in a real clear average 0:08:14.560 --> 0:08:16.960 of polls, but Hocal still leads by close to ten 0:08:16.960 --> 0:08:19.840 percentage points in a five thirty eight pole average, and 0:08:19.920 --> 0:08:22.840 recent Sienna and Marist College poles show her ahead by 0:08:22.840 --> 0:08:26.360 even more. Michael, thank you. Denise. Georgia, with several high 0:08:26.400 --> 0:08:28.840 profile races, has set a record on the first day 0:08:28.840 --> 0:08:31.640 of early in person voting. More than a hundred thirty 0:08:31.680 --> 0:08:35.640 three thousand votes were cast Monday, and eight seven increase 0:08:35.679 --> 0:08:37.800 from the first day of early in person voting in 0:08:37.800 --> 0:08:42.120 twenty eighteen. Tens intended to provide temporary shelter to migrants 0:08:42.120 --> 0:08:44.959 open today in New York City, the first of series 0:08:44.960 --> 0:08:48.040 of makeshift centers to house and influx of tens of 0:08:48.080 --> 0:08:51.959 thousands of Central and South Americans. The new relief center, 0:08:52.040 --> 0:08:56.880 located on Randall's Island, is intended to house and provide food, water, 0:08:57.000 --> 0:09:00.360 medical care and COVID test when migrants for to arrive 0:09:00.440 --> 0:09:04.079 in New York. Zach Iskol is the Emergency Management Commissioner. 0:09:04.400 --> 0:09:07.160 But people get off the bus, report authority. We have 0:09:07.160 --> 0:09:10.000 a very limited amount of time, about forty five minutes 0:09:10.120 --> 0:09:13.240 from the power where we are figuring out what people's immedia, 0:09:13.280 --> 0:09:16.600 the medical needs are. There will be a ten pm curfew. 0:09:16.880 --> 0:09:19.720 Former President trumpet scheduled to sit for a deposition and 0:09:19.760 --> 0:09:23.040 answer questions under oath from attorneys for E. Gene Carroll, 0:09:23.240 --> 0:09:26.240 a former columnists at L magazine. Carroll has sued Trump 0:09:26.280 --> 0:09:29.000 for the faminger when he denied her rape claim from 0:09:29.000 --> 0:09:31.520 the ninet nineties. Global Name is twenty four hours a 0:09:31.600 --> 0:09:34.040 day on air rand on Bloomberg Quicktake, powered by more 0:09:34.040 --> 0:09:36.320 than twenty seven hundred journalists analysts more than a hundred 0:09:36.360 --> 0:09:39.680 twenty countries. I'm Michael bar This is Bloomberg Naked, all right, Michael, 0:09:39.679 --> 0:09:46.280 Thank you, five o nine on Wall Street Time for 0:09:46.280 --> 0:09:49.000 the Bloomberg Sports Report, brought to you by Try State Autie. 0:09:49.120 --> 0:09:52.040 Here's John Stashower, Thanks to Athan. The decisive Game five 0:09:52.040 --> 0:09:54.040 of the l the s rained down byday night at 0:09:54.040 --> 0:09:57.079 the stadium played yesterday afternoon and decided early on. The 0:09:57.160 --> 0:10:00.840 Guardians made this somewhat surprising decision to start Aaron Savali. 0:10:00.920 --> 0:10:02.960 The Yankees had tee off on him twice in the 0:10:03.000 --> 0:10:06.120 regular season. He faced only five batters, got only one out, 0:10:06.160 --> 0:10:08.360 gave up a John Carlos Stanton three run Homer, and 0:10:08.400 --> 0:10:10.280 the Yanks were on their way to a five to 0:10:10.440 --> 0:10:12.720 one went over Cleveland. Aaron Judge also Homer, and then 0:10:12.760 --> 0:10:15.880 the Yanks decision to start Nester Cortez on three days rest. 0:10:16.320 --> 0:10:18.400 That worked well, so the Yanks able to come back 0:10:18.440 --> 0:10:20.320 from the two games to one deficit. And now it's 0:10:20.320 --> 0:10:23.520 on to Houston with Aaron Boone's team playing game one 0:10:23.559 --> 0:10:26.640 of the ALCS tonight challenges. We're facing a great team, 0:10:27.040 --> 0:10:31.280 you know. Uh, as far as the quick turnaround, we'll 0:10:31.280 --> 0:10:34.200 be fine. I mean, that's that's baseball. We do that 0:10:34.280 --> 0:10:37.000 all the time. You know, We'll walk in there with 0:10:37.040 --> 0:10:40.560 some confidence. Um, we know, we know they're a great 0:10:40.600 --> 0:10:44.120 team and rested and ready, and um we look forward 0:10:44.120 --> 0:10:46.480 to the channel. Three times the Astros have ended the 0:10:46.559 --> 0:10:49.360 Yankee season, in two thousand fifteen wild Card game and 0:10:49.400 --> 0:10:51.920 in the ALCS in both two thousand seventeen and nineteen 0:10:51.960 --> 0:10:54.800 Yanks star Jamison ty Own tonight of the Astros start 0:10:54.920 --> 0:10:57.520 Justin Hurlander, Game one of the NLCS and San Diego 0:10:57.640 --> 0:11:00.160 fewest hits ever in a postseason game. The at He 0:11:00.240 --> 0:11:02.720 has had three, but two of them were solo homers 0:11:02.720 --> 0:11:05.160 the Padres and only one hit. The Phils won to nothing. 0:11:05.200 --> 0:11:08.360 They're now six and one in the postseason. NBA season 0:11:08.400 --> 0:11:11.120 underway home wins by Boston and Golden State. Nick's open 0:11:11.200 --> 0:11:13.720 up tonight in Memphis, the Nets home from New Orleans. 0:11:14.040 --> 0:11:17.320 Devils and Islanders both one at home. The Cult Jim 0:11:17.440 --> 0:11:20.920 Ers the first NFL owner to say publicly there is 0:11:21.040 --> 0:11:24.480 merit to the league, removing ownership from Washington's Dan Snyder, 0:11:24.880 --> 0:11:28.360 John Stashi Allard Bloomberg Sports Nathan all Right, John, thank you. 0:11:28.840 --> 0:11:31.080 SMP future is moving a touch higher now. They're up 0:11:31.080 --> 0:11:33.880 five point. Staff futures up six dance stack futures leading 0:11:33.880 --> 0:11:38.120 the games this morning, up thirty seven points now. Tenure 0:11:38.160 --> 0:11:41.400 treasury is down thirteen thirty seconds. Yield four point zero 0:11:41.440 --> 0:11:43.599 six percent. Yield on the two year four point for 0:11:43.800 --> 0:11:47.319 eight nymex crude is higher by nine tenths per cent, 0:11:47.400 --> 0:11:50.640 up seventy three cents eighty three dollars fifty five cents barrel. 0:11:50.920 --> 0:11:54.520 The President Biden expected to announce another strategic all released 0:11:54.600 --> 0:11:58.000 later today. Netflix shares surging in the pre market, up 0:11:58.040 --> 0:12:01.480 nearly thirteen percent on earnings. We'll talk about it next 0:12:01.640 --> 0:12:07.160 with Bloomberg Quick Takes Alex Webb. This is Bloomberg. Bloomberg 0:12:07.200 --> 0:12:09.120 Sports Report was brought to you by Audie. Don't let 0:12:09.200 --> 0:12:11.560 someone else drive off in the autie model you've always wanted. 0:12:11.640 --> 0:12:13.760 Visit your local price state autie dealer to get behind 0:12:13.800 --> 0:12:16.680 the wheel of yours today, or visit autie Offers dot 0:12:16.679 --> 0:12:24.760 com for more information, markets, headlines and breaking news twenty 0:12:24.760 --> 0:12:27.640 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:27.640 --> 0:12:30.599 Business Out and at Bloomberg Quick Take. This is a 0:12:30.640 --> 0:12:40.280 Bloomberg Business Flash and I'm Karen Moscow. European stocks are 0:12:40.320 --> 0:12:43.840 slipping in US Stock Index futures are higher after giving 0:12:43.920 --> 0:12:46.760 up gains on worries about inflation and a looming recession. 0:12:46.800 --> 0:12:49.480 The pound is falling afy UK inflation rose faster than 0:12:49.480 --> 0:12:52.240 economists we're looking for, and we checked the markets every 0:12:52.320 --> 0:12:55.280 fifteen minutes throughout the trading day on Bloomberg. Right NOWUSNP 0:12:55.480 --> 0:12:58.920 futures up four points down, futures that will change, Nastack 0:12:59.000 --> 0:13:01.640 futures up thirty four. The decks in Germany's down a 0:13:01.679 --> 0:13:05.000 tenth of a percent ten, Your treasury down thirteen thirty seconds. 0:13:05.000 --> 0:13:07.319 You have four point six percent, and the yield of 0:13:07.400 --> 0:13:10.319 the two year four point four eight percent. Nin Max 0:13:10.360 --> 0:13:12.840 Screwed oil is up one percent of eighty four cents 0:13:12.840 --> 0:13:15.560 at eighty three dollars. Sixty six cents of barrel comexs 0:13:15.600 --> 0:13:17.679 go down six tenths per cent or ten dollars at 0:13:17.679 --> 0:13:22.120 sixteen forty eight. Announce the euro point zero against the 0:13:22.160 --> 0:13:24.680 dollar British found one point one two seven four and 0:13:24.720 --> 0:13:27.600 the end one forty nine point four three. Look at 0:13:27.600 --> 0:13:30.440 a bitcoin this morning, lower down seven tenths percent at 0:13:30.520 --> 0:13:33.600 nineteen thousand, two hundred dollars. Today we are watching four 0:13:33.600 --> 0:13:36.320 reports on housing starts and building permits at eight thirty 0:13:36.320 --> 0:13:38.360 Wall Street time, and the Federal Reserve at least as 0:13:38.360 --> 0:13:41.160 its page book at two and tests among companies schedule 0:13:41.240 --> 0:13:44.360 to report earnings today as a Bloomberg business flash. Now 0:13:44.360 --> 0:13:46.640 here's Michael Barr with more on what's going on around 0:13:46.640 --> 0:13:49.680 the world. Muchael the morning. Good morning, Karen, President Biden, 0:13:49.800 --> 0:13:53.400 is opening the oil spick again. President Biden today will 0:13:53.400 --> 0:13:57.160 announce another strategic oil reserve release. Designs a hell bring 0:13:57.200 --> 0:13:59.920 down the price of gas. He could release another fifty 0:14:00.160 --> 0:14:03.679 million barrels of oil. A key Ukrainian city has been 0:14:03.720 --> 0:14:07.480 warned Russia is planning relentless attacks in the coming days. 0:14:07.840 --> 0:14:10.680 People in Curson are being told to get out now. 0:14:11.200 --> 0:14:14.359 In baseball, the Yankees are getting ready to face the Astros. 0:14:14.400 --> 0:14:17.439 In the a l CS, New York beat the Guardians 0:14:17.480 --> 0:14:20.840 five ones to advance in Game one of the NLCS 0:14:20.880 --> 0:14:23.400 to Philly shut out the Padres to zip. In the 0:14:23.440 --> 0:14:26.600 opening night of the NBA, the Celtics and Warriors one. 0:14:27.000 --> 0:14:30.280 In hockey, the Devils and Islanders won, the Bruins lost. 0:14:30.560 --> 0:14:33.280 Global news twenty four hours a day on air and 0:14:33.440 --> 0:14:36.920 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:14:36.960 --> 0:14:40.000 journalists and analysts more than a hundred twenty countries. Michael 0:14:40.040 --> 0:14:42.640 Lare and this is Bloomberg. Nathan alright, Michael, Thanks, It's 0:14:42.680 --> 0:14:45.480 five nineteen on Wall Street Line from the Bloomberg Interactive 0:14:45.520 --> 0:14:49.160 Brokers Studios. This is Bloomberg Daybreak. We had to peel 0:14:49.200 --> 0:14:52.480 our eyes away from what's streaming on Netflix this morning 0:14:52.480 --> 0:14:56.240 to see how the stocks doing it is surging with 0:14:56.520 --> 0:15:01.360 the streaming giant once again reporting subscribe growth, how about 0:15:01.400 --> 0:15:04.080 that first time this year? In fact, it's saded subscribers. 0:15:04.120 --> 0:15:07.720 Let's bring in Bloomberg Quick Take correspondent Alex Web to 0:15:07.800 --> 0:15:11.640 dive deeper into these positive results for Netflix. And it 0:15:11.760 --> 0:15:15.120 certainly seems like investors see it that way Alex. With 0:15:15.240 --> 0:15:18.200 the shares up at twelve and two thirds percent in 0:15:18.240 --> 0:15:21.640 this pre market, So does this sort of negate the 0:15:21.760 --> 0:15:24.640 narrative that had taken hold so far this year that 0:15:24.680 --> 0:15:28.480 we've hit peak streaming. I don't know if it negates 0:15:28.520 --> 0:15:31.000 it fully. You know, the stock is, even with that 0:15:31.160 --> 0:15:36.120 anticipated twelve percent bump, is still down some sixty from 0:15:36.200 --> 0:15:40.040 from its peak in November last year. But it is 0:15:41.560 --> 0:15:44.320 good news for Netflix investors. This has for a long 0:15:44.360 --> 0:15:46.640 time invalued as a growth stock. So if they're not growing, 0:15:46.760 --> 0:15:50.480 then investors struggle to know how to value it. The 0:15:50.560 --> 0:15:52.640 story does? They seem to be a lot of it 0:15:52.680 --> 0:15:55.400 focused on this new ads here that they are introducing. 0:15:55.560 --> 0:15:59.560 And not only does that help them add new it 0:15:59.600 --> 0:16:04.840 has so three purposes. Fundamentally, it helps them ads subscribers 0:16:04.920 --> 0:16:07.640 at a lower cost, of the subscriber. The actual revenue 0:16:07.640 --> 0:16:10.120 they can make from that subscriber is potentially more than 0:16:10.160 --> 0:16:12.360 they make from their current basic tier, because they could 0:16:12.360 --> 0:16:14.440 be adding five or six dollars a month in advertising 0:16:14.480 --> 0:16:21.120 revenue for each subscriber. And thirdly, it just reinvigorates the 0:16:21.960 --> 0:16:25.600 growth story that then like should drive the stock if 0:16:25.600 --> 0:16:29.480 they're pretty successful. How does that position Netflix though against 0:16:29.680 --> 0:16:32.480 some of its competitors that some of which have already 0:16:32.640 --> 0:16:38.240 been experimenting with or fully embracing a ad supported model. 0:16:39.600 --> 0:16:42.600 It's certainly it gives them a little bit more of 0:16:42.600 --> 0:16:44.920 a buttress. The big challenge is going to be how 0:16:44.960 --> 0:16:48.200 they execute this because the others who are doing this, 0:16:48.280 --> 0:16:49.720 if you some people have been doing it for a 0:16:49.720 --> 0:16:52.320 long time. You think about there are some entirely ad 0:16:52.320 --> 0:16:56.360 funded streaming services. They call them f A s T 0:16:56.720 --> 0:17:00.320 Fast Free ad supported Television, which is a far as 0:17:00.320 --> 0:17:04.240 I can concern, just television. Um, they have been around 0:17:04.240 --> 0:17:07.440 for a while, but they've also built out the ads infrastructure. 0:17:07.520 --> 0:17:10.359 Think about Disney, which obviously owned CC fastpital so Hulu. 0:17:10.960 --> 0:17:14.520 They've got a huge advertising network because they're also an 0:17:14.560 --> 0:17:19.280 ABC and ESPN and plenty of other classic television stations. Besides, 0:17:19.320 --> 0:17:23.439 so Netflix is starting from nowhere. It's working with Microsoft 0:17:23.520 --> 0:17:26.399 and a few others. Microsoft also not massive in this 0:17:26.560 --> 0:17:31.359 space in terms of video streaming ads. So how it 0:17:31.400 --> 0:17:33.960 executes is going to be the big question to see 0:17:34.000 --> 0:17:36.280 if it can get close to the six dollars fifty 0:17:36.320 --> 0:17:39.240 that Hulu makes and ads per subscriber. What about the 0:17:39.320 --> 0:17:42.920 content race? Does Netflix still have an advantage there? I mean, 0:17:43.000 --> 0:17:46.440 they talked in the earnings call about some of the 0:17:46.520 --> 0:17:49.600 successes they've had with the latest season of Stranger Things 0:17:49.640 --> 0:17:53.160 and even with some of the non English speaking content 0:17:53.240 --> 0:17:55.840 that they put out there. Where is Netflix when it 0:17:55.880 --> 0:17:58.720 comes to the content race? Well, I mean, actually the 0:17:58.760 --> 0:18:01.200 challenge and Netflix has is that it doesn't have an advantage, 0:18:01.320 --> 0:18:06.280 right because it doesn't have the catalogs that the established, 0:18:06.480 --> 0:18:09.119 you know, traditional broadcasters have. It doesn't you know, have 0:18:09.520 --> 0:18:11.800 a back catalog stretching back half a century or even 0:18:11.920 --> 0:18:15.240 full century. But it does have its ability to spend 0:18:15.440 --> 0:18:18.800 quite a lot of capital on new shows, and there 0:18:18.840 --> 0:18:21.800 had been something of a fellow patch, partly to do 0:18:21.880 --> 0:18:24.720 with the virus and inability to make as many shows 0:18:24.800 --> 0:18:28.199 they've wanted. There are a lot of these films and 0:18:28.240 --> 0:18:32.359 productions now coming, you know, being released, particularly in Asia, 0:18:32.400 --> 0:18:35.359 which is a huge growth opportunity for them. They've really 0:18:35.400 --> 0:18:38.560 doubled down on their career content. Of course, um you know, 0:18:39.000 --> 0:18:41.800 we know about the big hits. They've already had their 0:18:41.840 --> 0:18:44.400 They've got another one which came out in the most 0:18:44.440 --> 0:18:48.600 recent chorder called the Extraordinary Attorney Woo. These are shows 0:18:48.640 --> 0:18:51.240 that helped drive growth in markets where they are not 0:18:51.320 --> 0:18:53.920 as well penetrated as they are in in the US. 0:18:53.920 --> 0:18:55.840 Just about thirty seconds left here. But it comes to 0:18:55.920 --> 0:18:58.440 putting out that can't I mean read Hastings mentioned that 0:18:58.840 --> 0:19:01.720 the currency challenges could be a head wind as well. 0:19:01.760 --> 0:19:04.760 How big ahead win could that be? I mean they've 0:19:04.760 --> 0:19:06.880 said in the fourth quarter it's going to be a challenge, 0:19:06.920 --> 0:19:08.919 that it should get a little bit better in the 0:19:08.920 --> 0:19:11.240 first off next year. It is interesting that they feel 0:19:11.240 --> 0:19:12.959 they need to make these comments. Were in the past, 0:19:13.080 --> 0:19:14.960 you know, that was probably stuff around the edges that 0:19:15.000 --> 0:19:16.840 didn't matter so much. So it does speak to the 0:19:16.880 --> 0:19:19.440 fact that they're not it's not all plane sailing just yet, 0:19:19.520 --> 0:19:22.200 that things remained a little bit straightened, but at least 0:19:22.240 --> 0:19:26.359 for now. The shares are moving higher by twelve point 0:19:26.560 --> 0:19:30.520 six percent following a return to subscriber growth two point 0:19:30.560 --> 0:19:34.320 four million new subscribers added in this latest quarter. Alex 0:19:34.359 --> 0:19:37.080 Webb of Bloomberg Quick Take as always great to get 0:19:37.119 --> 0:19:40.359 your insights on what's happening in the tech space. Looking 0:19:40.400 --> 0:19:43.440 ahead to the market open this morning, future is looking 0:19:43.480 --> 0:19:45.200 for a little bit of direction now. S and P 0:19:45.400 --> 0:19:48.360 futures are a little changed up two points. Now futures 0:19:48.560 --> 0:19:51.560 back in the red, but not by much, down thirteen points. 0:19:51.960 --> 0:19:55.240 Nan stack futures are higher by twenty seven points, so 0:19:55.440 --> 0:19:57.320 pulling back on some of the earlier games in the 0:19:57.320 --> 0:20:01.320 pre market session. Ten your treasuries down twelve thirty seconds 0:20:01.320 --> 0:20:03.919 for yield of four point zero five percent. This is 0:20:03.960 --> 0:20:10.360 Bloomberg Bloomberg eleven three oh weather sunny, breezy, mid fifties today. 0:20:10.400 --> 0:20:12.119 We're gonna start to warm up just a bit as 0:20:12.119 --> 0:20:14.240 we had through the rest of this week's sunshine. Tomorrow 0:20:14.320 --> 0:20:18.920 upper fifties, low sixties by Friday, silly now forty three degrees. 0:20:22.160 --> 0:20:26.720 Broadcasting live from the Bloomberg Interactive Broker Studio in New York. 0:20:26.800 --> 0:20:31.480 Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, 0:20:31.600 --> 0:20:35.000 Bloomberg one oh six one to San Francisco, Bloomberg M 0:20:35.080 --> 0:20:38.160 sixteen to the country Sirius XM to the one nine team, 0:20:38.280 --> 0:20:41.400 and around the globe to the Bloomberg Business and Bloomberg 0:20:41.520 --> 0:20:50.680 Radio dot com. This is Bloomberg Daybreak and it's five 0:20:50.760 --> 0:20:53.560 thirty on Wall Street. Good morning. I'm Karen Moscow, I'm 0:20:53.640 --> 0:20:56.200 Nathan Hagar. Bloomberg Daybreak is brought to you by SEI. 0:20:56.320 --> 0:20:59.639 Built on advanced technologies and fifty years of innovation. SEI 0:20:59.680 --> 0:21:04.000 offers asset Managers are comprehensive and flexible operations outsourcing platform. 0:21:04.080 --> 0:21:07.120 Go to se i C dot com slash managers. Well, 0:21:07.119 --> 0:21:09.119 we're just about four hours away from the open of 0:21:09.240 --> 0:21:10.959 US trading. Let's get you up to date on the 0:21:10.960 --> 0:21:12.800 news you need to know. At this shower, the s 0:21:12.880 --> 0:21:15.560 n P five hundred has rallied two straight days to 0:21:15.600 --> 0:21:18.560 start the week. So have we seen a bottom here? 0:21:18.680 --> 0:21:23.400 Shares Chief investment strategist Eva Ato says no, but rallies 0:21:23.440 --> 0:21:26.320 like this could continue through December. It's hard to time 0:21:26.320 --> 0:21:28.399 at the bottom, but I would say we're closer to 0:21:28.480 --> 0:21:31.119 it than not, and I expect to see the market 0:21:31.400 --> 0:21:34.240 and the year higher. We might even see a Christmas 0:21:34.359 --> 0:21:38.440 rally by then. We'll see the Fed getting inflation under control, 0:21:38.640 --> 0:21:42.120