WEBVTT - Bloomberg Daybreak: October 24, 2022 - Hour 1 (Radio) 0:00:01.360 --> 0:00:04.600 Live from the Bloomberg Interactive Berger Studios. This is Bloomberg 0:00:04.640 --> 0:00:09.119 Daybreak for Monday, October two. Coming up this shower stocks 0:00:09.119 --> 0:00:12.840 in Asia tumble as China's Jan Pink stacks his leadership 0:00:12.920 --> 0:00:15.640 ranks with loyalists, which she soon Act moves closer to 0:00:15.720 --> 0:00:19.079 becoming UK's next prime Minister. UK Bond's rally on the 0:00:19.120 --> 0:00:21.800 Hope's for fiscal responsibility from soon Act, and a big 0:00:21.840 --> 0:00:25.360 week for earnings of Apple, Amazon, and Microsoft, all reporting 0:00:25.560 --> 0:00:27.880 New York at sixty two million dollars to make the 0:00:27.920 --> 0:00:31.479 city subway system safer. Unlus Ukraine denies Russia's warning of 0:00:31.480 --> 0:00:34.360 a dirty bomb from Key. I'm Michael Barne. More ahead, 0:00:34.400 --> 0:00:37.680 I'm John Stashoward Sports. The Yankee season is overswept by 0:00:37.680 --> 0:00:40.120 the Astros. They'll play the Phillies of the World Series. 0:00:40.159 --> 0:00:45.320 The Jets and Giants keep women. That's all s Trady 0:00:45.320 --> 0:00:49.240 Ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, 0:00:49.440 --> 0:00:53.239 Bloomberg ninety nine one, Washington, d C, Bloomberg one oh 0:00:53.320 --> 0:00:57.800 six one, Boston, Bloomberg nine sixties and Francisco Sirius x 0:00:58.000 --> 0:01:01.160 M one nine team and around the world Bloomberg Radio 0:01:01.280 --> 0:01:09.360 dot com and via the Bloomberg Business. Good Monday morning. 0:01:09.400 --> 0:01:12.319 I'm Amy Morris and I'm Karen Moscow and US dot 0:01:12.400 --> 0:01:15.440 index futures are lower this morning. We're coming up to 0:01:15.520 --> 0:01:17.240 five oh one on Wall Street and we check the 0:01:17.240 --> 0:01:20.360 markets every fifteen minutes throughout the training day on bloomberg 0:01:20.480 --> 0:01:23.280 S and p Future is down sixteen points, DWAL future 0:01:23.360 --> 0:01:27.960 is down one and NASDAG futures down. The tenure treasury 0:01:28.040 --> 0:01:30.800 up three thirty seconds, yield four point to zero percent, 0:01:31.080 --> 0:01:33.200 and the yield on the two year four point four 0:01:33.360 --> 0:01:37.240 eight percent. Amy Karen stocks are coming off their best 0:01:37.280 --> 0:01:40.479 week since June. US central bankers say the next phase 0:01:40.480 --> 0:01:43.160 in their campaign to curb inflation will be debate on 0:01:43.160 --> 0:01:45.759 how to raise rates and when to slow the pace 0:01:45.800 --> 0:01:49.640 of increases. Lamar Villery as a partner in portfolio manager 0:01:49.680 --> 0:01:52.360 at Villery and Company and says a FED pivot is 0:01:52.480 --> 0:01:54.560 key for some of it. It just would kind of 0:01:54.560 --> 0:01:58.520 give everybody, i think, a sense of confidence that you know, 0:01:58.600 --> 0:02:03.760 we're out of this uber high environment and potentially, you know, yeah, 0:02:03.840 --> 0:02:06.120 if if you know, if we get in placed under 0:02:06.160 --> 0:02:09.359 control and then the economy slows down, potentially you could 0:02:09.400 --> 0:02:13.400 see some rate cuts next year. Lamar Villery at Hillery 0:02:13.400 --> 0:02:15.920 In Company says there's even a chance the FED does 0:02:16.000 --> 0:02:19.560 not raise rates in December. Well outside of the Fed, 0:02:19.600 --> 0:02:22.400 amy to focus this week is mainly on earnings. We 0:02:22.440 --> 0:02:24.880 get a big tech companies reporting and here are the 0:02:25.000 --> 0:02:28.560 preview as Bloomberry's Charlie Pellin, it's a huge week because 0:02:28.560 --> 0:02:31.920 we hear from names that will include Apple, Alphabet, Microsoft, 0:02:32.000 --> 0:02:36.959 Metal Platforms, Amazon and Intel. Den ives is with Wedbush Securities, 0:02:37.120 --> 0:02:40.440 and it's most important tech earnings teasing potentially in the 0:02:40.520 --> 0:02:44.120 last two years because of what's happened overall demand store. 0:02:44.160 --> 0:02:47.040 In terms of the macro, tech needs to prove it 0:02:47.160 --> 0:02:49.920 the resilience is there and not just tech. This week, 0:02:49.919 --> 0:02:53.640 other big names include x On Mobile, three m Ford, Boeing, 0:02:53.720 --> 0:02:57.520 and Coca Cola, among many many others. In New York, 0:02:57.600 --> 0:03:01.079 Charlie Pellet Bloomberg Daybreak. All right, thanks Charlie. In Asia 0:03:01.120 --> 0:03:03.799 over the weekend, it was all about politics. President she 0:03:04.200 --> 0:03:07.360 Being started his third term by stacking China's most powerful 0:03:07.360 --> 0:03:10.800 body with his allies. The move gives him unfettered control 0:03:10.840 --> 0:03:14.120 over the world's second largest economy. Speaking to the parties 0:03:14.160 --> 0:03:18.200 gathering on Sunday, she committed to reforming and opening up 0:03:18.240 --> 0:03:23.160 the economy. Here he is speaking through an interpreter. China's 0:03:23.160 --> 0:03:27.760 economy has great resilience, potential and latitude. It's strong fundamentals 0:03:27.760 --> 0:03:30.160 will not change and it will remain on a positive 0:03:30.200 --> 0:03:33.400 trajectory over the long run. China will open its doors 0:03:33.440 --> 0:03:36.800 ever wider. We will step fast over deepening reform and 0:03:36.840 --> 0:03:40.120 opening up across the board. Markets did not react favorably 0:03:40.200 --> 0:03:43.280 to Si Jianping's move to stack his leadership ranks with loyalists. 0:03:43.360 --> 0:03:46.200 China's currency weekend and the country's stocks tumble to the 0:03:46.240 --> 0:03:49.640 lowest level since two thousand and eight. Bloombergy Daybreak Asia 0:03:49.640 --> 0:03:52.760 anchor Brian Curtis has more from Hong Kong. It's a 0:03:52.800 --> 0:03:56.400 sharp rebuke to one man rule, a break from collective 0:03:56.480 --> 0:03:59.920 leadership over the past many decades. It means more policy 0:04:00.080 --> 0:04:04.000 staked on COVID zero and state owned enterprises. Alibaba, g 0:04:04.320 --> 0:04:06.920 dot Com and ten Cent all down eight to twelve 0:04:07.360 --> 0:04:10.960 during the session. Meantime, China's long delayed data showed mixed 0:04:10.960 --> 0:04:14.400 recovery in the third quarter. On employment rose and retail 0:04:14.480 --> 0:04:18.480 sales weakened. In September third quarters, GDP up three point 0:04:18.560 --> 0:04:21.760 nine percent, better than the three point three percent estimate 0:04:22.040 --> 0:04:25.520 in Hong Kong. Brian Curtis Bloomberg debreak, All right, thanks Brian. 0:04:25.600 --> 0:04:28.880 Staying in Asia now, Former Treasury Secretary Larry Summers is 0:04:28.880 --> 0:04:31.719 weighing in on policy in Japan, and he is watching 0:04:31.720 --> 0:04:35.760 financial developments out of Tokyo given the potential for difficulties 0:04:35.800 --> 0:04:39.440 if the country abandons it's pegged bond yield policy. There's 0:04:39.440 --> 0:04:42.760 been a lot of borrowing money UH in Japan to 0:04:42.920 --> 0:04:46.680 finance things all over the world, and so if Japanese 0:04:46.720 --> 0:04:50.640 interest rates UH start to change, that could be a 0:04:50.640 --> 0:04:54.719 pretty big deal. Former Treasury Secretary Lawrence Summers made the 0:04:54.720 --> 0:04:57.520 comments on Bloomberg's Wall Street Week. Catch that program every 0:04:57.520 --> 0:05:00.120 week Fridays at six pm Eastern on Bloomberg Radi oh 0:05:00.240 --> 0:05:03.200 and Television. Well in Europe this morning, Amy, the political 0:05:03.200 --> 0:05:06.239 action is still front and center. Richie Sunac has taken 0:05:06.240 --> 0:05:08.680 a big step toward becoming the next Prime Minister of 0:05:08.720 --> 0:05:11.440 the UK. And let's go live to London and get 0:05:11.440 --> 0:05:13.839 the latest of the Bloomberg's U and parts. Good morning, 0:05:13.839 --> 0:05:16.320 you Win, Good morning Karen and Amy. We should know 0:05:16.480 --> 0:05:20.039 the name of Britain's next Prime minister later today. Former 0:05:20.160 --> 0:05:23.080 Chancellor Rishi Sunac is the clear favorite to take over 0:05:23.160 --> 0:05:26.960 as the country's fifth leader in less than seven years. 0:05:27.000 --> 0:05:29.560 His only remaining opponent, Penny more Than, is yet to 0:05:29.640 --> 0:05:32.919 get the one endorsements from lawmakers need to make the 0:05:32.960 --> 0:05:36.160 final runoff. Boris Johnson, who cut shorts his holiday in 0:05:36.200 --> 0:05:38.760 the Caribbean to fly back to the UK now, says 0:05:38.880 --> 0:05:42.159 it's not the right time to enter the race in London. 0:05:42.200 --> 0:05:44.560 I'm you and pots the midday break, all right, thanks you, 0:05:44.640 --> 0:05:46.800 And oil is lower to begin the week right now now, 0:05:46.800 --> 0:05:50.080 i'm x crude is just down at two percent. President 0:05:50.120 --> 0:05:53.600 Biden's top energy advisor, Amos Hoxtein, is taking aim at Opec, 0:05:54.040 --> 0:05:58.200 saying that OPEC's recent output cut was largely a political move. 0:05:58.520 --> 0:06:00.560 Nobody can argue that it was warm to for any 0:06:00.560 --> 0:06:03.240 economic reason today and even open when they announced a 0:06:03.279 --> 0:06:05.200 two million and then they say, well, we're not actually 0:06:05.240 --> 0:06:08.239 gonna cut two million, We're just gonna cut nine hundred, 0:06:08.279 --> 0:06:10.440 and then you look a little deeper and it's really 0:06:10.480 --> 0:06:12.760 just about five hundred. So the impact on the market 0:06:12.880 --> 0:06:15.400 is not going to be as significant. Uh So this 0:06:15.480 --> 0:06:18.400 was more of a big political statement. Ms ox Seen 0:06:18.480 --> 0:06:21.359 making those comments on CBS Space the Nation. Catch that 0:06:21.400 --> 0:06:24.719 program every Sunday here on Bloomberg Radio. Well, speaking on 0:06:24.760 --> 0:06:28.080 political moves amy the January six hearings on Capitol Hiler 0:06:28.160 --> 0:06:31.200 back in focus. Co chair in the January six committee list, 0:06:31.279 --> 0:06:34.440 Cheney says Donald Trump will not be allowed to testify 0:06:34.520 --> 0:06:37.479 live on television before the committee. On Bloomberg said Baxter 0:06:37.600 --> 0:06:40.560 has that story. Cheney says Donald Trump will not be 0:06:40.640 --> 0:06:43.760 allowed to turn any testimony before the committee into a circus. 0:06:43.800 --> 0:06:46.120 This isn't going to be, you know, his first debate 0:06:46.400 --> 0:06:48.720 against Joe Biden and the circus and the food fight 0:06:48.800 --> 0:06:51.800 that that became this. This is far too serious set 0:06:51.800 --> 0:06:56.960 of issues, and we've made clear exactly what his obligations are. 0:06:57.160 --> 0:07:00.000 Training on NBC has heard on Bloomberg says a level 0:07:00.080 --> 0:07:03.800 of discipline and vigor that the herring deserves will be observed. 0:07:04.000 --> 0:07:07.040 In San Francisco, I'm at Baxter Bloomberg Daybreak, all right, 0:07:07.080 --> 0:07:09.280 and thank you, n S and P. Futures lower down 0:07:09.279 --> 0:07:12.360 about fifteen points down, Futures down a hundred four, nunsday, 0:07:12.480 --> 0:07:16.080 Futures down fifty nine and straight ahead your latest local headlines, 0:07:16.160 --> 0:07:23.840 plus a check of sports and this is Bloomberg. Thank you, Karen. 0:07:23.880 --> 0:07:26.280 Five oh seven on Wall Street. Let's bringing Michael Barr 0:07:26.360 --> 0:07:28.040 with more on what else is going on in New 0:07:28.120 --> 0:07:31.360 York and around the world. Good morning, Michael, Good morning Amy. 0:07:31.440 --> 0:07:34.640 New York Governor Kathy Hokel and Mayor Eric Adams saying 0:07:34.640 --> 0:07:38.200 they will bolster spending on the city subway system. They 0:07:38.280 --> 0:07:41.080 plan to add sixty two million dollars to deploy more 0:07:41.120 --> 0:07:45.440 police officers and removing severely mentally ill homeless people amid 0:07:45.440 --> 0:07:48.560 a series of high profile killings and other crimes on 0:07:48.600 --> 0:07:52.560 the transit system. HOCl and Adams acknowledge that writers continue 0:07:52.600 --> 0:07:56.000 to feel threatened using the largest mass transit system in 0:07:56.040 --> 0:07:59.760 the US. In one reason attack, the NYPD is searching 0:07:59.760 --> 0:08:02.680 for a man seen pushing another man onto the subway 0:08:02.720 --> 0:08:06.640 tracks in an unprovoked attack and then running away. The victim, 0:08:06.720 --> 0:08:09.560 David Martin, suffered a broken collar bone and stroll in 0:08:09.640 --> 0:08:13.280 face because from New York and love New York and 0:08:13.360 --> 0:08:15.520 always felt they've taken the train. And now it's thirties, 0:08:15.520 --> 0:08:17.960 two years old, I no longer feel safe and that's 0:08:18.000 --> 0:08:20.640 that's not there and that's not okay. The announcement comes 0:08:20.760 --> 0:08:24.600 nine months after Hocal and Adams unveiled a subway safety plan. 0:08:25.400 --> 0:08:28.840 Governor Hocol and her Republican challenger, le Zelden with face 0:08:28.880 --> 0:08:33.480 off Tuesday in their one and only debate before election day. HOCl, 0:08:33.559 --> 0:08:36.439 who once held a double digit lead over Zelden, has 0:08:36.559 --> 0:08:39.240 only a four percentage point edge according to the latest 0:08:39.320 --> 0:08:43.600 Quinnipiac University poll. However, a Sienna College poll gave Hocal 0:08:43.840 --> 0:08:46.840 and eleven point lead. Released on the same day. Bill 0:08:46.920 --> 0:08:49.959 reform has become a major issue in the campaign ahead 0:08:49.960 --> 0:08:52.960 of the November mid term elections. New polling shows that 0:08:53.040 --> 0:08:56.719 both parties have their areas of strength, but Republicans are 0:08:56.720 --> 0:08:58.800 strutting to open up a gap on some of the 0:08:58.840 --> 0:09:04.480 big issues, including inflation, crime, issues around the economy. Mark Short, 0:09:04.760 --> 0:09:08.040 the former chief of staff Vice President Mike Pence, says 0:09:08.080 --> 0:09:10.640 Republicans are going to win in November because it is 0:09:10.640 --> 0:09:13.200 a referendum on Joe Biden. Is clear that Donald Trump 0:09:13.240 --> 0:09:15.520 had a huge influence over the primary. He has a 0:09:15.559 --> 0:09:18.480 core base of roughly and a lot of the candidacy 0:09:18.640 --> 0:09:22.959 championed one with thirty three this primary. Mark Short spoke 0:09:23.000 --> 0:09:25.839 on ABC's This Week, which can be heard Sundays on Bloomberg. 0:09:26.360 --> 0:09:29.760 Russia's defense chief has alleged that Ukraine was preparing a 0:09:29.800 --> 0:09:34.880 provocation involving a radioactive device star claim that was strongly 0:09:34.920 --> 0:09:39.040 rejected by US, Ukrainian and British officials. Russia repeatedly has 0:09:39.040 --> 0:09:42.520 made allegations that Ukraine could detonate a dirty bomb and 0:09:42.520 --> 0:09:45.400 blame it on Moscow. Global News twenty four hours a 0:09:45.480 --> 0:09:48.560 day on air and on Bloomberg Quicktake, powered by more 0:09:48.600 --> 0:09:52.080 than hundred journalists and analysts more than a hundred twenty countries. 0:09:52.440 --> 0:09:55.840 Michael Barr and this is Bloomberg Aamy. All right, thank you, Michael, 0:09:58.720 --> 0:10:01.080 five or nine Will Street. I'm now for the Bloomberg 0:10:01.120 --> 0:10:03.800 Sports Update, brought to you by Trice State Audi. Here's 0:10:03.840 --> 0:10:05.839 Jones stash Our. Thanks to Amy. For so much of 0:10:05.920 --> 0:10:09.040 the summer there was talking maybe a Subway World Series 0:10:09.040 --> 0:10:11.520 in New York. Instead, the World Series will be the 0:10:11.559 --> 0:10:14.959 Phillies against the Astros starting Friday in Houston. The Astros 0:10:15.280 --> 0:10:17.560 still haven't lost to the postseason. Early on at the 0:10:17.559 --> 0:10:19.959 Stadium looked like the Yankees might stay alive. They led 0:10:20.000 --> 0:10:23.240 three nothing, and after you get another Harrison Bader home run, 0:10:23.280 --> 0:10:25.480 they were up five to four in the seventh inning, 0:10:25.480 --> 0:10:28.480 but the Astros scored twice, game tying hit by Jordan 0:10:28.520 --> 0:10:32.559 Albarez of Jonathan Lowisa, go ahead hit by Alex bregmanoff 0:10:32.559 --> 0:10:34.839 Clay Holmes, and the Astros won six to five for 0:10:34.920 --> 0:10:37.920 the series sweep and their fourth pennant in the last 0:10:37.920 --> 0:10:41.040 six years. Aaron Judge made the final out. It ended 0:10:41.120 --> 0:10:44.160 his historic home run hitting season. Did it end his 0:10:44.320 --> 0:10:47.720 career with the Yankees, will be a free agent Earlier 0:10:47.720 --> 0:10:50.480 On a rainy day in Philly, the Phillies trailed the Padres. 0:10:50.520 --> 0:10:54.160 In the eighth inning. Suarez delivers swing in a dry 0:10:54.360 --> 0:11:05.960 left field, H's deep blooms place Harper puck the Phillies 0:11:05.960 --> 0:11:08.520 on top. W I p the call Harper and the 0:11:08.520 --> 0:11:11.960 Phillies won four to three on the NLCS four to one. 0:11:11.960 --> 0:11:15.400 While baseball season in New York is over, football is 0:11:15.440 --> 0:11:18.200 alive and well. Giants and Jets both won for the 0:11:18.360 --> 0:11:20.280 fourth week in a row, both on the road. The 0:11:20.320 --> 0:11:23.560 Giants wouldn't get another comeback to win twenty three to seventeen, 0:11:23.559 --> 0:11:25.280 and Jacksonville, they had to hold on at the end, 0:11:25.320 --> 0:11:27.920 had to hold on to the Jazz wide receiver at 0:11:27.920 --> 0:11:29.920 the one yard line on the final play the Jets 0:11:29.920 --> 0:11:32.520 won sixteen to nine in Denver. Giants and Jets have 0:11:32.559 --> 0:11:34.920 combined to play seven road games. They are seven and 0:11:35.000 --> 0:11:37.160 oh in them that The Garden Rangers lost at Columbus 0:11:37.160 --> 0:11:39.920 five to one. Islanders lost at Florida three to two. 0:11:40.080 --> 0:11:43.480 John Stashwar, Bloomberg Sports Team, all right, thank you, John. 0:11:43.559 --> 0:11:46.720 Checking the futures now, SMP futures down, thirteen, dal features 0:11:46.760 --> 0:11:51.400 down on Nasdaq futures down fifty four, ten year treasury 0:11:51.800 --> 0:11:54.840 up six thirty seconds, the yield at four point one 0:11:55.080 --> 0:11:58.120 nine percent. Much more still to come on Bloomberg Daybreak. 0:11:58.160 --> 0:12:01.559 Stay with us on this Monday morning. This is Bloomberg. 0:12:06.800 --> 0:12:09.200 The Bloomberg Sports Report was brought to you by Audie. 0:12:09.200 --> 0:12:11.320 Don't let someone else drive off in the autie model 0:12:11.400 --> 0:12:14.319 you've always wanted. Visit your local, try state autie dealer 0:12:14.400 --> 0:12:16.400 to get behind the wheel of yours today, or visit 0:12:16.400 --> 0:12:23.320 autie Offers dot com for more information, markets, headlines and 0:12:23.440 --> 0:12:26.720 breaking news twenty four hours a day at Bloomberg dot Com, 0:12:26.800 --> 0:12:31.480 the Bloomberg Business Outland at Bloomberg Quicktape's a Bloomberg Business 0:12:31.559 --> 0:12:40.520 Flash and I'm Karen Moscow. Songs in Europe pairing games 0:12:40.559 --> 0:12:43.840 and US futures are declining as a route in Chinese 0:12:43.840 --> 0:12:47.360 shares ways on sentiment while investors wait the next for 0:12:47.440 --> 0:12:49.199 the next batch of earnings from some of the world's 0:12:49.200 --> 0:12:52.560 biggest companies. Treasury yields are dipping. The dollar is gaming. 0:12:53.000 --> 0:12:55.560 We checked the markets every fifteen minutes throughout the trading day. 0:12:55.600 --> 0:12:58.600 On bloomberg SMP future is down about twenty points this morning. 0:12:58.600 --> 0:13:01.680 Down futures down a hundred forty you nownsday futures down 0:13:01.720 --> 0:13:03.840 seventy eight the decks in Germany's up a third of 0:13:03.840 --> 0:13:06.880 a percent, and your treasury up seven thirty seconds yield 0:13:06.880 --> 0:13:09.000 four point one eight percent. They yield on a two 0:13:09.080 --> 0:13:12.280 year four point four seven percent. Nine X Screwed oil 0:13:12.480 --> 0:13:14.840 is down two point one percent on a dollar seventy 0:13:14.920 --> 0:13:17.080 five at eighty three dollars thirty one cents a barrel 0:13:17.280 --> 0:13:19.679 comic schooled at a quarter percent or four dollars ten 0:13:19.760 --> 0:13:23.199 cents at sixteen fifty two twenty announced the euro point 0:13:23.400 --> 0:13:26.199 nine eight three zero against the dollar. British found one 0:13:26.200 --> 0:13:29.240 point one three one four the en one nine point 0:13:29.320 --> 0:13:32.000 three five and I'm looking at a bitcoin it's down 0:13:32.040 --> 0:13:35.400 nine ten percent. In nineteen thousand three hundred dollars. That's 0:13:35.400 --> 0:13:38.280 a Bloomberg Business Flash. Now here's Muchael Barr with Moore 0:13:38.320 --> 0:13:40.600 on what's going on around the world. Muchael, Good morning, 0:13:40.679 --> 0:13:44.200 Good morning Karen. Former British Prime Minister Boris Johnson says 0:13:44.200 --> 0:13:47.040 he will not run to leave the Conservative Party, ending 0:13:47.080 --> 0:13:50.560 in tense speculation about a comeback. Johnson, who was announced 0:13:50.600 --> 0:13:53.160 it in July and the ethics scandals, was a wild 0:13:53.200 --> 0:13:56.839 card to replace liszt Trusts, who quit last week. Is 0:13:56.920 --> 0:14:01.400 withdrawal leaves former Treasury chief Rieshie Sooner the strong favorite 0:14:01.400 --> 0:14:04.280 to be Britain's next prime minister. In baseball, it will 0:14:04.320 --> 0:14:06.880 be the Astros against the Phillies in the World Series. 0:14:07.160 --> 0:14:10.680 The Yankees were swubbed by Houston Sunday in the ALCS 0:14:10.760 --> 0:14:14.240 in Game four, six five. The Phillies beat the Padres 0:14:14.280 --> 0:14:17.440 four three to win the NLCS four games to one. 0:14:17.880 --> 0:14:21.560 In football, the Giants Jets Commanders all one. Thet Is 0:14:21.640 --> 0:14:24.800 lost in the NBA, The Wizards lost the Warriors one. 0:14:25.080 --> 0:14:28.640 In the NHL. The Islanders and Rangers lost. Global News 0:14:28.640 --> 0:14:31.760 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:32.000 --> 0:14:34.920 powered by more than twenty seven hundred journalists and analyst 0:14:35.040 --> 0:14:37.600 more than a hundred twenty countries. I'm Michael bar This 0:14:37.760 --> 0:14:40.640 is Bloomberg all right, Thank you, Michael. It is five 0:14:40.760 --> 0:14:43.400 twenty on Wall Street where live from the Bloomberg Interactive 0:14:43.400 --> 0:14:46.720 Broker Studios. This is Bloomberg Daybreak and we're joined now 0:14:46.840 --> 0:14:50.680 by Dennis Gartman, University of Akron Endowment chairman and former 0:14:50.760 --> 0:14:54.320 publisher of the Guardman Letter. Dennis, it's always a pleasure. 0:14:54.360 --> 0:14:56.000 Thank you so much for taking the time with us 0:14:56.040 --> 0:14:58.960 this morning. Um, you have predicted this market will be 0:14:59.040 --> 0:15:02.000 getting uglier and counting weeks. You've embarrassed for a while. 0:15:02.320 --> 0:15:05.560 What could possibly change your mind? The only thing that 0:15:05.600 --> 0:15:07.680 will change my mind is if the Fed changes its mind, 0:15:07.720 --> 0:15:09.600 and I don't think the Fed has any intention of 0:15:09.720 --> 0:15:12.240 changing its mind at this point. The FED has lost 0:15:12.520 --> 0:15:14.560 a great deal of credibility and it's trying to re 0:15:14.720 --> 0:15:17.400 earn its credibility back. It's said that it's going to 0:15:17.440 --> 0:15:19.960 continue to tighten monetary policy. We know that the FED 0:15:20.480 --> 0:15:23.200 has a great job to do, a difficult job to 0:15:23.280 --> 0:15:25.680 do with reducing the size of its balance sheet, which 0:15:25.680 --> 0:15:28.400 has gone from nine billion dollars to nine trillion dollars 0:15:28.480 --> 0:15:30.960 over the course of the last several years, and the 0:15:31.040 --> 0:15:33.320 FED has said that it's going to allow the the 0:15:34.160 --> 0:15:37.320 balance sheet to roll off by about billion dollars a month. 0:15:37.760 --> 0:15:39.480 It has to continue to do that, and I think 0:15:39.560 --> 0:15:41.640 that the FED has made it abundantly clear that it's 0:15:41.640 --> 0:15:44.680 going to tighten monetary policy and allow the overnight FED 0:15:44.720 --> 0:15:46.800 funds right to go to at least seventy five basis 0:15:46.840 --> 0:15:49.840 points in the NOVA the impending November meeting, and I 0:15:49.880 --> 0:15:51.840 think they're going to take it another fifty basis points 0:15:51.840 --> 0:15:54.440 at the December meeting. After that, they may stop and 0:15:54.600 --> 0:15:57.400 see what happens, but I think the major trend is 0:15:57.440 --> 0:16:01.480 still downward. You've had a nice technical bounce. Technical bounces 0:16:01.520 --> 0:16:03.920 are to be expected after the kind of selling that 0:16:03.960 --> 0:16:07.040 we've seen in September and October. I think this bounce 0:16:07.120 --> 0:16:09.480 shall not last very much longer. And I think that 0:16:09.560 --> 0:16:12.480 the overnight the response that we've seen from China, with 0:16:12.880 --> 0:16:15.880 Hong Kong down almost six percent puts a puts the 0:16:15.960 --> 0:16:17.680 top to the market for the for the near term. 0:16:17.760 --> 0:16:20.920 So I've been very very since basically December thirty one 0:16:21.040 --> 0:16:23.360 to last year, and I continue to be barrish. I 0:16:23.440 --> 0:16:25.560 think you should use strength to reduce the size of 0:16:25.640 --> 0:16:30.400 your positions and again and raise cash you are and 0:16:30.440 --> 0:16:31.880 you made a lot of points in there. I want 0:16:31.920 --> 0:16:34.000 to ask about a couple of them, especially that bounce 0:16:34.080 --> 0:16:36.160 that we've seen in the past week. You don't think 0:16:36.200 --> 0:16:38.160 this one could have more staying power than when we 0:16:38.200 --> 0:16:40.360 saw a month ago. It may have a little bit 0:16:40.400 --> 0:16:42.800 more staying power. We've gone up a little bit. We've 0:16:42.880 --> 0:16:45.280 we've gone up on a little bit better volume, which 0:16:45.360 --> 0:16:47.840 I pay attention to. I I don't tend to I 0:16:47.880 --> 0:16:50.640 don't tend to pay much attention to technicals all the time. 0:16:51.080 --> 0:16:53.560 But I watched to see how markets respond. If they're 0:16:53.640 --> 0:16:57.040 rising on stronger volume than they're falling, that that's impressive. 0:16:57.080 --> 0:16:59.440 And this one has has done a little bit better 0:16:59.480 --> 0:17:02.120 than than the rally that we saw previously. I don't 0:17:02.120 --> 0:17:04.280 think it has a great good deal more strength to 0:17:04.359 --> 0:17:07.560 follow too. I thought, I thought we get to thirty 0:17:07.600 --> 0:17:10.360 eight hundred, maybe thirty eight fifty on the SMP. We've 0:17:10.400 --> 0:17:13.000 gotten to thirty twelve. That's close enough for folk music, 0:17:13.080 --> 0:17:14.560 as I like to use, as I used to say, 0:17:15.080 --> 0:17:16.960 close enough for government works. So I think that we 0:17:17.119 --> 0:17:19.280 probably have run most of the upside out of the 0:17:19.320 --> 0:17:22.480 market at this point. Now, as far as the Feds 0:17:22.520 --> 0:17:25.440 increasing rates, the conventional wisdom had been sort of anticipating 0:17:25.760 --> 0:17:28.400 that they would stop increasing rates, maybe in the first 0:17:28.480 --> 0:17:31.760 half of next year, and perhaps not even see a 0:17:31.880 --> 0:17:34.440 rate increase in December. But you're not convinced. Why is that. 0:17:35.440 --> 0:17:39.040 I think we still continue to see inflationary pressures abundantly 0:17:39.480 --> 0:17:42.760 obvious around the around the country. Food prices continue to rise, 0:17:42.840 --> 0:17:46.840 car prices are rising, home prices. Home prices at least 0:17:46.880 --> 0:17:48.320 have stopped for a while because of the rise and 0:17:48.400 --> 0:17:51.520 interest rates, But inflationary pressures seemed to be abundant and 0:17:51.840 --> 0:17:54.479 evident and extant and continue. I don't think that's going 0:17:54.520 --> 0:17:57.159 to stop anytime soon. Look at what grain prices have 0:17:57.240 --> 0:17:58.760 been doing. They've been going from the lower left of 0:17:58.760 --> 0:18:00.880 the upper right. Look at what lost prices have been doing. 0:18:00.920 --> 0:18:02.719 They've been going from the lower left of the upper right. 0:18:03.240 --> 0:18:05.840 And even crude oil prices have stopped going down and 0:18:05.880 --> 0:18:08.760 have started to turn for the better, turning to the upside. 0:18:08.840 --> 0:18:11.639 So I think inflationary pressures continue to be abundant and 0:18:11.680 --> 0:18:14.399 continue to be evident, continue to be detrimental to the 0:18:14.480 --> 0:18:17.119 economy generally, and I think the FED wants to continue 0:18:17.160 --> 0:18:19.800 to fight that, so will they Will they raise rates 0:18:19.840 --> 0:18:23.200 in in I have my doubts as to whether they'll 0:18:23.240 --> 0:18:25.120 raise rates, But I think once they get to another 0:18:25.200 --> 0:18:28.000 hive basis points higher, it will be a long time 0:18:28.080 --> 0:18:30.280 before they before they pivot. I think it'll be a 0:18:30.400 --> 0:18:33.560 year or more before they even consider pivoting. So anybody 0:18:33.600 --> 0:18:35.200 who hopes that the FED is going to pivot and 0:18:35.240 --> 0:18:38.000 stop tightening and start to ease, I think you can 0:18:38.080 --> 0:18:40.879 put that aside for several years. All right, Dennis, we 0:18:40.880 --> 0:18:43.560 haven't about a minute here. Just what do you recommend? 0:18:43.680 --> 0:18:46.680 What are our next steps? I think the recommendation is 0:18:46.720 --> 0:18:50.000 to continue to raise cash. Two year notes at the 0:18:50.160 --> 0:18:51.719 four in a quarter percent seemed to be a good 0:18:51.720 --> 0:18:54.480 place to hide money for a while. Raise cash reduced 0:18:54.520 --> 0:18:56.800 the size of your positions in the in the equities market, 0:18:57.200 --> 0:19:00.600 use strength to become less involved. And uh, if you 0:19:00.680 --> 0:19:02.760 have to be involved, look for high dividend players that 0:19:03.119 --> 0:19:07.240 have had substantive that that have paid their dividends for 0:19:07.440 --> 0:19:10.800 years in the past and are well covered. So be careful. 0:19:11.160 --> 0:19:12.960 I've said that for months. I'm going to continue to say, 0:19:13.080 --> 0:19:15.240 be careful out their race cash and and and be 0:19:15.400 --> 0:19:17.880 less involved. Very briefly, what do you think about gold? 0:19:18.000 --> 0:19:20.359 Very briefly, I think it wants to go higher. I 0:19:20.400 --> 0:19:23.359 think Let's Friday was a reversal day to the upside. 0:19:23.359 --> 0:19:25.080 You made a new load, you turned higher on the day, 0:19:25.080 --> 0:19:26.720 and I think gold wants to go higher from here. 0:19:27.160 --> 0:19:30.600 That's perfect. Dennis Gartman, University of Akron and Dowmont chairman, 0:19:30.680 --> 0:19:33.159 former publisher of The Gartman Letter. It is always a 0:19:33.240 --> 0:19:35.199 privilege to get your insights, sir, Thank you so much 0:19:35.240 --> 0:19:38.320 for joining us this morning, and we much more still 0:19:38.400 --> 0:19:40.639 to come on Bloomberg Daybreak. Checking the markets now. S 0:19:40.720 --> 0:19:43.880 and P futures down twenty one points, Daal futures down 0:19:43.960 --> 0:19:47.800 one hundred fifty one point, Nasdaq futures down just about 0:19:47.840 --> 0:19:51.320 seventy nine points, the ten year treasury of six thirty seconds, 0:19:51.400 --> 0:19:54.480 the ten year yield at four point one nine the 0:19:54.520 --> 0:19:57.919 two year yield four point four eight percent, still ahead. 0:19:57.960 --> 0:20:00.600 On this Monday morning edition of Bloomberg Daybreak, Markets the 0:20:00.680 --> 0:20:04.320 latest news and business, economics and finance. 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