WEBVTT - Bloomberg Daybreak: October 25, 2022 - Hour 2 (Radio) 0:00:03.000 --> 0:00:05.680 Live from the Bloomberg into Raptor Berger Studios. Is this 0:00:05.720 --> 0:00:10.200 Bloomberg Daybreak for Tuesday, October two coming up this hour. 0:00:10.520 --> 0:00:13.640 Stocks are steady as investors await an onslaught of big 0:00:13.640 --> 0:00:16.720 tech earnings. Eb S shares gained the most since June. 0:00:16.760 --> 0:00:19.960 We'll talk with the bank CEO. Rieshi Sunak is set 0:00:20.000 --> 0:00:22.960 to become the UK's third prime minister in his many months. 0:00:23.079 --> 0:00:25.760 And Adidas has said to cut ties with Kanye West 0:00:25.920 --> 0:00:28.800 and rest in an attack in the New York subway system. Plus, 0:00:28.920 --> 0:00:33.080 it's debate night for Democratic Governor hokel and a Republican challenger, 0:00:33.159 --> 0:00:36.600 Les Eldon. I'm Michael Barr more ahead of John Stash Howard. 0:00:36.640 --> 0:00:39.559 Sports than Nicks beat Orlando, than Nets lost in Memphis, 0:00:39.600 --> 0:00:44.720 the Bears beat the Patriots in Monday Night Football. That's 0:00:44.720 --> 0:00:48.400 all Train ahead on Bloomberg day Break on Bloomberg eleven 0:00:48.479 --> 0:00:52.960 Free on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:52.960 --> 0:00:56.680 one oh six one, Boston, Bloomberg nine sixties and Francisco 0:00:57.160 --> 0:01:00.840 Sirius XM one nineteen and around the world on Bloomberg 0:01:00.960 --> 0:01:08.119 Radio dot Com and The Bloomberg Business Side. And good Morning, 0:01:08.120 --> 0:01:11.320 I'm Karen Moscow. I'm Nathan Hager. Bloomberg Daybreak is brought 0:01:11.319 --> 0:01:14.160 to you by SEI. Asset managers don't get results that 0:01:14.160 --> 0:01:16.319 are off the charts when their solutions are off the shelf. 0:01:16.640 --> 0:01:20.000 Learn how SEI is operating platform can turn infrastructure into 0:01:20.080 --> 0:01:23.280 a competitive advantage at S E I C dot Com 0:01:23.319 --> 0:01:27.400 slash Tech. Well US futures are lower this morning six 0:01:27.440 --> 0:01:29.199 o one on Wall Street, and we check the markets 0:01:29.240 --> 0:01:32.120 every fifteen minutes throughout the trading day on Bloomberg S 0:01:32.160 --> 0:01:35.200 and P futures down sixteen points down, futures down a 0:01:35.280 --> 0:01:38.119 hundred forty five and as Dagg features down twenty seven. 0:01:38.400 --> 0:01:41.040 The tenure Treasury at fourteen thirty seconds, he had four 0:01:41.080 --> 0:01:43.800 point one eight percent yield on the two year four 0:01:43.840 --> 0:01:47.040 point four seven percent nine. Mex screwed oil is down 0:01:47.040 --> 0:01:49.080 one and a half percent on a dollar twenty five 0:01:49.120 --> 0:01:51.600 and eighty three dollars thirty three cents in barrel called 0:01:51.640 --> 0:01:54.040 mex gold down six ten percent or nine dollars ninety 0:01:54.080 --> 0:01:57.080 cents at sixteen forty four twenty announced and the euro 0:01:57.160 --> 0:02:00.760 point five against the dollar. Nathan Well Karen stocks are 0:02:00.800 --> 0:02:03.400 coming off two straight days of gains. Yesterday saw broad 0:02:03.440 --> 0:02:05.600 based Drilly, with more than eight percent of stocks in 0:02:05.640 --> 0:02:10.000 the SNP index closing higher earnings, Optimism and speculation the 0:02:10.040 --> 0:02:12.440 Fed will slow its pace of interest rate hikes helps 0:02:12.480 --> 0:02:15.680 fuel the one point two percent gain. Ben Kirby's cohead 0:02:15.680 --> 0:02:18.519 of investments at Thornburg Investment Management. You know, when you 0:02:18.560 --> 0:02:22.119 look at the surveys of bowls versus bears, there's way 0:02:22.160 --> 0:02:24.240 more bears than there have been in a in a 0:02:24.240 --> 0:02:26.840 long time relative to bowl so that at least augers 0:02:26.840 --> 0:02:29.519 I think for the potential for for a snap back, 0:02:29.840 --> 0:02:32.680 um how sustainable that is as the economy slows again, 0:02:32.720 --> 0:02:35.560 That's that's kind of big question. Thornburg Investment Managements. Ben 0:02:35.600 --> 0:02:38.040 Kirby thinks we are nearing the peak for interest rates 0:02:38.480 --> 0:02:41.440 and Asian Nathan, it was a volatile session following yesterday's 0:02:41.480 --> 0:02:44.480 historic sell off. A benchmark tech index in Hong Kong 0:02:44.520 --> 0:02:47.200 bounced between gains and losses and eventually closed up more 0:02:47.240 --> 0:02:50.520 than one percent today. That indexx plunge more than seven 0:02:50.520 --> 0:02:53.720 percent yesterday on the prospects of more market and friendly 0:02:53.720 --> 0:02:57.160 policies during President She Jun Ping's third term. While President 0:02:57.240 --> 0:03:00.359 She stacks China's top posts with allies. Karen white House 0:03:00.400 --> 0:03:03.080 advisors are working on a meeting between the communist leader 0:03:03.080 --> 0:03:06.519 and President Biden. Amy Morris has details from our Bloomberg 0:03:07.200 --> 0:03:10.760 newsroom in Washington. State Department spokesman Ed Price says she's 0:03:10.840 --> 0:03:14.320 move effectively tearing down divisions between party and state. Won't 0:03:14.440 --> 0:03:17.600 change the US approach to China, a strategy that includes 0:03:17.639 --> 0:03:20.640 competing on security matters while cooperating where they can on 0:03:20.680 --> 0:03:24.480 global issues like climate change, global health, and counter narcotics. 0:03:24.760 --> 0:03:27.920 National Security Council spokesman John Kirby says they're working on 0:03:27.960 --> 0:03:31.120 a possible meeting at the G twenty in Bali next month. 0:03:31.400 --> 0:03:34.680 Even as there are fewer voices at the top two questions, 0:03:34.680 --> 0:03:39.680 she's more restrictive policies in Washington. I'm Amy Morris, Bloomberg Daybreak, right, Amy, 0:03:39.680 --> 0:03:42.120 thanks you. In Europe today, Rishi Sunak is said to 0:03:42.160 --> 0:03:44.920 become the UK's third Prime minister and as many months 0:03:44.960 --> 0:03:46.680 and we go to London and get the very latest 0:03:46.680 --> 0:03:49.600 at Bloomberg's un Podska, morning you, and good morning Karen 0:03:49.600 --> 0:03:52.720 and Nathan. It's just seven weeks since liszt Trust travel 0:03:52.800 --> 0:03:56.160 to meet Queen Elizabeth to become Prime Minister. Later today, 0:03:56.160 --> 0:03:59.920 the UK will have another new leader, former Chancellor Rishi sooner. 0:04:00.120 --> 0:04:03.040 We'll meet King Charles this morning. After winning the supports 0:04:03.080 --> 0:04:06.640 of Conservative lawmakers, his first task as Britain's new prime 0:04:06.640 --> 0:04:09.320 minister will be to appoint his top team as he 0:04:09.360 --> 0:04:12.800 seeks to reassure nervous investors. Jeremy Hunt is likely to 0:04:12.800 --> 0:04:16.520 remain as Chancellor in charge of the nation's finances in London. 0:04:16.520 --> 0:04:18.720 I'm you imports in back day, break you and thank you. 0:04:18.920 --> 0:04:20.640 Let's get back to markets now where it is a 0:04:20.640 --> 0:04:23.960 busy day for earnings. Shares of HSBC are down more 0:04:24.000 --> 0:04:27.200 than seven percent. The bank reported higher than expected charges 0:04:27.240 --> 0:04:30.680 for possible loan losses in its third quarter. HSBC did 0:04:30.760 --> 0:04:33.240 join other banks and posting profits that beat estimates, but 0:04:33.279 --> 0:04:35.479 its low lost provision was almost a third higher than 0:04:35.520 --> 0:04:38.720 a Bloomberg compiled consensus. On the flip side, shares of 0:04:38.880 --> 0:04:41.440 UBS are up more than four percent. The Swiss Bank 0:04:41.480 --> 0:04:44.080 reported better than expected profit in the third quarter as 0:04:44.160 --> 0:04:47.520 higher interest race helped offset a lower client activity. Be 0:04:47.640 --> 0:04:52.720 caught up with UBS CEO Ralph Hummers. Volatility volatinity in 0:04:52.800 --> 0:04:56.400 the foreign change markets, where we profited a lot actually 0:04:56.400 --> 0:04:59.200 dis quarter which you also see that volatility leading to 0:04:59.360 --> 0:05:04.479 further concertainty with our emphasist with our clients right on 0:05:04.520 --> 0:05:08.080 the well side, and that in certainly is actually it 0:05:08.279 --> 0:05:12.200 translated into the need for further guidance of our clients 0:05:12.240 --> 0:05:15.200 right and again we need more guidance. EBS CEO Ralph 0:05:15.200 --> 0:05:18.080 Hammers made the comments in an interview with Bloomberg's Menace 0:05:18.160 --> 0:05:21.040 Cranny Here. More of that conversation coming up shortly right 0:05:21.080 --> 0:05:23.599 here on Bloomberg Daybreak Here in the U s care 0:05:23.640 --> 0:05:26.320 in a busy week for tech earnings kicks off this afternoon, 0:05:26.360 --> 0:05:29.360 with both Alphabet and Microsoft reporting, we get a preview 0:05:29.360 --> 0:05:33.200 on Microsoft from Bloomberg's Jeff Bellinger. Bloomberg Intelligence says the 0:05:33.240 --> 0:05:37.880 software giant could potentially surpass the twenty four consensus for 0:05:37.880 --> 0:05:41.320 sales growth. Microsoft is seen as the company that stands 0:05:41.360 --> 0:05:44.279 to benefit the most from the growing digital shift as 0:05:44.320 --> 0:05:48.000 clients upgrade their technology, but the company's earnings come at 0:05:48.000 --> 0:05:50.480 a time when there is foreign exchange pressure and there 0:05:50.480 --> 0:05:54.400 are concerns about weakness in its PC business. Microsoft is 0:05:54.440 --> 0:05:57.400 in the process of laying off about one thousand workers 0:05:57.440 --> 0:06:02.400 across multiple divisions. Jeff Inger, Bloomberg Daybreak Right, Jeff Thanks 0:06:02.440 --> 0:06:05.080 and other corporate News This morning, it looks like Adidas's 0:06:05.120 --> 0:06:07.640 cutting ties with Kanye West. We get the details from 0:06:07.680 --> 0:06:11.359 Bloomberg's Lisa Matteo. Bloomberg News has learned the German sports 0:06:11.360 --> 0:06:13.680 company plans to end its partnership with the rapper and 0:06:13.800 --> 0:06:17.360 designer following a rash of offensive behavior. West, who now 0:06:17.400 --> 0:06:21.239 goes by YA, has made controversial statements, including anti Semitic 0:06:21.360 --> 0:06:25.039 social media posts in recent weeks. The Adida's decision follows 0:06:25.040 --> 0:06:28.359 weeks of deliberations inside the company, which over the past 0:06:28.400 --> 0:06:31.800 decade has built the Easy Line together with Ya, into 0:06:31.839 --> 0:06:34.160 a brand that's accounted for as much as eight percent 0:06:34.200 --> 0:06:37.800 of Adidas's total sales. According to several estimates from Wall 0:06:37.800 --> 0:06:41.839 Street analysts, Adidas would join Gap and Carrying's Balenciaga fashion 0:06:41.920 --> 0:06:46.080 label and prematurely cutting ties with West. Lisa Mateo Bloomberg 0:06:46.160 --> 0:06:49.360 daybreak right, Lisa, thanks, and shares of Adidas are falling 0:06:49.440 --> 0:06:52.080 on the news of its breakup with Kanye West. Shares 0:06:52.120 --> 0:06:55.480 are down almost four percent in Frankfurt, and we're watching 0:06:55.480 --> 0:06:59.080 earnings cross the Bloomberg terminal. Karen from Ups. They've come 0:06:59.120 --> 0:07:01.320 in with just earnings per share for the third quarter 0:07:01.360 --> 0:07:04.039 of the beat. The average analyst estimate Right now, the 0:07:04.040 --> 0:07:07.160 shares are a little changed in early trading. S and 0:07:07.200 --> 0:07:10.200 P futures are down thirteen points, STOLE futures down a 0:07:10.280 --> 0:07:14.200 hundred eighteen, and DAS deck futures are lower by twenty points. 0:07:14.480 --> 0:07:17.360 Straight ahead your latest local headlines and a check of sports. 0:07:17.520 --> 0:07:24.560 This is Bloomberg. It sounds six oh seven on Wall 0:07:24.560 --> 0:07:27.320 Street where sixty three degrees in Central Park got a 0:07:27.400 --> 0:07:31.120 crash on the l I E eastbound at exit forty two. 0:07:31.160 --> 0:07:34.080 Details coming up in traffic. First, Michael Bars here with 0:07:34.120 --> 0:07:35.560 what else is going on in New York and around 0:07:35.560 --> 0:07:37.760 the world. Michael, thank you very much. Nathan Man is 0:07:37.800 --> 0:07:40.800 in custody in New York City for last week's violent 0:07:40.920 --> 0:07:44.160 and unprovoked attack on a subway writer. Forty one year 0:07:44.200 --> 0:07:48.160 old lem Crai McCrae, who police say has an extensive 0:07:48.160 --> 0:07:51.720 criminal history, is now accused of shoving thirty two year 0:07:51.760 --> 0:07:54.640 old David Martin onto the train tracks at a Brooklyn 0:07:54.720 --> 0:07:59.080 subway stop last Friday. Martin suffered a broken collar bone. Meanwhile, 0:07:59.200 --> 0:08:02.800 commuters are now searching out places along railings on the 0:08:02.840 --> 0:08:12.720 platform where they feel they can't be assaulted. The m 0:08:12.760 --> 0:08:15.720 t A is now also trying to gain the authority 0:08:15.840 --> 0:08:19.600 to ban people with convictions that include violent crime underground 0:08:19.920 --> 0:08:23.240 from using the subway system. There was a tragic accident 0:08:23.280 --> 0:08:26.480 in the subway in Manhattan. Authorities say a commuter was 0:08:26.560 --> 0:08:29.600 struck and killed by a one train at fifty ninth 0:08:29.640 --> 0:08:33.640 Street Columbus Circle yesterday afternoon after getting caught in the doors. 0:08:34.160 --> 0:08:37.360 It is debate night between New York Democratic Governor Kathy 0:08:37.440 --> 0:08:41.240 Hokel and her Republican challenger, Lee's Elden. The two are 0:08:41.320 --> 0:08:45.280 expected to debate such topics as crime and the state's 0:08:45.400 --> 0:08:50.320 bail reform laws. Florida Governor Rhonda Santis and former governor 0:08:50.440 --> 0:08:54.560 Charlie Cris debated ahead of next month's election. Chris asked 0:08:54.600 --> 0:08:57.559 the Santis about a possible run for governor in four 0:08:57.840 --> 0:08:59.960 and asked him to commit to a full term as 0:09:00.040 --> 0:09:02.480 governor if he wins. You're running for governor, why don't 0:09:02.520 --> 0:09:04.000 you look in the eyes of the people of state 0:09:04.040 --> 0:09:06.480 of Florida and say to them, if you're re elected, 0:09:06.559 --> 0:09:09.960 you will serve a full four year term as governor. 0:09:10.040 --> 0:09:13.520 Yes or no. Governor de Santist defended laws passed during 0:09:13.520 --> 0:09:17.199 his term that restricted the teaching of racial and gender 0:09:17.240 --> 0:09:20.640 issues in Florida schools. I'm proud of our history. I 0:09:20.679 --> 0:09:22.960 don't want to teach kids to hate our country. I 0:09:22.960 --> 0:09:25.160 don't want to teach kids to hate each other. And 0:09:25.200 --> 0:09:28.160 the way to stop discrimination on the basis of race 0:09:28.520 --> 0:09:31.480 is to stop discriminating on the basis of race. To 0:09:31.559 --> 0:09:36.040 debate airing on WPEC, character actor Leslie Jordan, who appeared 0:09:36.040 --> 0:09:39.079 on dozens of TV shows, has died. Jordan, who was 0:09:39.120 --> 0:09:41.280 four ft eleven, got his big break on the comedy 0:09:41.320 --> 0:09:44.920 show Murphy Brown. Jordan Azzle played Beverly Leslie on the 0:09:44.920 --> 0:09:48.280 show Will and Grace. Sharing this, they commus a great 0:09:48.760 --> 0:09:53.560 shock to you, but I'm a homo sexual. Leslie Jordan, 0:09:53.600 --> 0:09:56.720 who died in a car accident, was sixty seven Global 0:09:56.760 --> 0:09:59.000 News twenty four hours a day on air and on 0:09:59.040 --> 0:10:03.040 Bloomberg Quickday, powered by more than seven journalists mentalists more 0:10:03.040 --> 0:10:05.640 than a hundred twenty countries. On Michael bar This is Bloomberg, Nathan, 0:10:05.720 --> 0:10:12.520 Thanks Michael. Coming up to six ten on Wall Street. 0:10:12.559 --> 0:10:14.400 Time for the Bloomberg Sports Update. Bright to you by 0:10:14.440 --> 0:10:16.840 tri State OUTI with John Senshaw. All right after the 0:10:16.920 --> 0:10:18.920 Jet seven won four in or Opera aps tunes into 0:10:18.920 --> 0:10:21.040 the Monday night game to watch the Patriots two of 0:10:21.080 --> 0:10:24.400 the next Jets three games, or versus New England, who 0:10:24.400 --> 0:10:27.200 got surprisingly blown out at home by Chicago thirty three 0:10:27.200 --> 0:10:29.400 to fourty. The Bears score the last twenty three points. 0:10:29.600 --> 0:10:32.480 They out rushed the pass two forty three to seventy. 0:10:32.520 --> 0:10:35.360 They four spoor turnovers. Mac Jones returned from his ankle 0:10:35.400 --> 0:10:38.080 injury but got bens for rookie Bailey Zappi, and Bill 0:10:38.080 --> 0:10:40.720 Belichick said he's not sure who his quarterback will be 0:10:40.840 --> 0:10:44.120 this Sunday at MetLife that Jetwood in Denver was costly. 0:10:44.240 --> 0:10:46.840 Rookie running back Breese Hall tours a c L guard 0:10:47.040 --> 0:10:50.080 Elijah Vera Tucker Torres triceps and both are done for 0:10:50.080 --> 0:10:53.200 the year. Jets coaches Robert Sala, you don't see the NFL, 0:10:53.240 --> 0:10:56.040 and uh you know, the sex man, Michael Carter has 0:10:56.040 --> 0:10:58.559 proven that he can carry the load, and uh Ti 0:10:58.679 --> 0:11:00.880 Johnson has done a really nice job of and with 0:11:00.960 --> 0:11:03.880 our offensive line, because offensive line we've been, you know, 0:11:03.920 --> 0:11:06.800 it's been all year with guys shuffling, and just got 0:11:06.800 --> 0:11:08.200 a lot of faith in the guys that are here 0:11:08.200 --> 0:11:09.880 to be able to step in and continue to do 0:11:09.920 --> 0:11:11.920 the job that was done before before them, and the 0:11:12.000 --> 0:11:14.360 Jets last night might a trade they get a running back. 0:11:14.400 --> 0:11:16.640 They sent the late round draft pick to acquire James 0:11:16.720 --> 0:11:19.480 Robinson from Jacksonville. That's where the Giants just won their 0:11:19.520 --> 0:11:22.400 fourth in a row, but they saw three offensive starters 0:11:22.400 --> 0:11:25.400 go down knee injuries to guard Ben Brettison and rookie 0:11:25.400 --> 0:11:27.840 tackle Evin Neil, and i injury the rookie tight end 0:11:27.920 --> 0:11:30.719 Daniel Bellinger. None will play this week in Seattle, but 0:11:30.840 --> 0:11:33.240 all could be back later in the season at the 0:11:33.280 --> 0:11:35.240 Guard next be in Orlando won fifteen one or two. 0:11:35.320 --> 0:11:38.400 Julius Randall twenty five points. Jalen Brunson had twenty one 0:11:38.400 --> 0:11:41.440 in Our Day Better twenty in Memphis, thirty seven points 0:11:41.440 --> 0:11:44.360 for both Kevin Durant and Kyrie Irving, but thirty eight 0:11:44.600 --> 0:11:47.439 her both John Morant and Desmond Baine, and the Grizzlies 0:11:47.480 --> 0:11:49.800 beat the Nets one thirty four one twenty four The 0:11:49.840 --> 0:11:53.400 Devil's Loft to Washington six three. John Stash Downward, Bloomberg 0:11:53.440 --> 0:11:57.439 Sports thanks John SMP features down fourteen points, the futures down. 0:11:58.360 --> 0:12:02.560 That future is lowered by twenty two points. This is Bloomberg. 0:12:06.880 --> 0:12:09.280 Bloomberg Sports was brought to you by Audie Don't let 0:12:09.280 --> 0:12:11.760 someone else drive off and the outie model you've always wanted. 0:12:11.840 --> 0:12:14.120 Visit your local price state autie dealer to get behind 0:12:14.120 --> 0:12:16.880 the wheel of yours today, or visit autie Offers dot 0:12:16.920 --> 0:12:24.520 com for more information, markets, headlines and breaking news twenty 0:12:24.520 --> 0:12:27.400 four hours a day. At Bloomberg dot Com the Bloomberg 0:12:27.400 --> 0:12:31.439 Business Out and at Bloomberg Quicktape is a Bloombern Business 0:12:31.480 --> 0:12:39.960 Flash and I'm Karen Moscow. This updates brought to you 0:12:40.040 --> 0:12:42.400 by b n Y Mellen's Perishing Learned Why the world's 0:12:42.400 --> 0:12:46.120 most sophisticated wealth management and institutional firms rely on Perishing 0:12:46.400 --> 0:12:49.600 to help them improve profitability, create efficiency, attract talent, and 0:12:49.640 --> 0:12:53.000 manage risk. At Pershing and dot com, they continue to 0:12:53.000 --> 0:12:55.480 watch shares a ups. They're up about three tents of 0:12:55.520 --> 0:12:58.959 a percent this morning after third quarter profit beat analysts estimates. 0:12:59.320 --> 0:13:02.560 US dot inn X futures, meanwhile, are falling on another 0:13:02.679 --> 0:13:06.480 busy day for corporate earnings. S ANDP futures are done 0:13:06.480 --> 0:13:10.240 about seventeen points and now futures down fifty two. NASDAG 0:13:10.280 --> 0:13:13.760 futures down in thirty ten year treasury of fifteen thirty seconds. 0:13:13.760 --> 0:13:15.880 You hald four point one seven percent. They yield on 0:13:16.000 --> 0:13:18.800 the two year four point four seven percent. Nine x 0:13:18.840 --> 0:13:20.880 screwed oil is down one and a half percent, down 0:13:20.920 --> 0:13:23.400 a dollar twenty nine and eighty three dollars twenty seven 0:13:23.480 --> 0:13:26.360 cents a barrel. The euro point nine six seven against 0:13:26.400 --> 0:13:29.240 the dollar. That's a Bloomberg business flash. Now here's Michael 0:13:29.240 --> 0:13:31.320 Barr with more on what's going on around the world. 0:13:31.440 --> 0:13:34.360 Michael Karren, thank you very much. Rishi Sunac is due 0:13:34.360 --> 0:13:37.000 to be installed as Britain's third Prime Minister of the 0:13:37.120 --> 0:13:39.559 year by King Charles the Third and then his first 0:13:39.600 --> 0:13:42.360 task is appointing a cabinet that can wrestle with the 0:13:42.440 --> 0:13:47.120 UK's economic and political prices. Sunach was elected as leader 0:13:47.120 --> 0:13:49.880 of the governing Conservative Party after the brief term of 0:13:49.960 --> 0:13:53.520 Liz Trusts. Six Palestinians were killed in the West Bank, 0:13:53.600 --> 0:13:56.360 over nine and more than thirty were injured as an 0:13:56.480 --> 0:14:01.120 Israeli military operation targets a local militia that has carried 0:14:01.120 --> 0:14:04.720 out attacks in the NBA. The next one, the Nets 0:14:04.720 --> 0:14:08.240 and Celtics lost in hockey, The Capital's Beat, The Devil's 0:14:08.400 --> 0:14:11.680 six three Global News twenty four hours a day on 0:14:11.920 --> 0:14:15.480 air and on Bloomberg Quicktake powered by more than twenty 0:14:15.600 --> 0:14:19.080 seven hundred journalist and analysts in more than one twenty countries. 0:14:19.360 --> 0:14:23.360 Michael Barr and this is Bloomberg. Michael. Thanks six nineteen 0:14:23.400 --> 0:14:26.960 now on Wall Street Live from the Bloomberg Interactive Broker Studios. 0:14:27.000 --> 0:14:29.560 This is Bloomberg Daybreak. We want to bring you back 0:14:29.560 --> 0:14:33.160 down to our interview with the CEO of UBS, Ralph Hammers. 0:14:33.520 --> 0:14:36.480 He spoke with Bloomberg's Mannis Cranny after the Swiss bank 0:14:36.600 --> 0:14:39.880 beat the third quarter earnings estimates. Along with talking about 0:14:39.920 --> 0:14:43.080 the results, they discussed the outlook for US rates, why 0:14:43.240 --> 0:14:46.880 UBS is committed to the UK and investing in China. 0:14:47.680 --> 0:14:49.520 One of the things that you hung a hat on 0:14:49.560 --> 0:14:51.720 and we chatted about it was your wealth from DAL 0:14:51.920 --> 0:14:55.520 that deal has not gone away, comps, whatever word we choose. 0:14:55.600 --> 0:14:58.360 What the market wants to know was do you pull 0:14:58.400 --> 0:15:00.520 the plug on that? The German pull a blog on that? 0:15:00.680 --> 0:15:04.280 Where did they deal have fractures? Well, I think it 0:15:04.400 --> 0:15:07.320 changing tactics is absolutely not a change in strategy and 0:15:07.320 --> 0:15:10.520 I think that's the the important message for our plans 0:15:10.520 --> 0:15:13.040 if it comes to US growth in the US market. 0:15:13.560 --> 0:15:17.080 Neua's market. We're as you know, we are heavily invested. 0:15:17.400 --> 0:15:20.960 It's a it's a very uh important part of our 0:15:20.960 --> 0:15:25.840 strategy to grow there in the three different segments and 0:15:25.920 --> 0:15:28.840 personas that we that we see the core segment is 0:15:28.920 --> 0:15:31.880 personally advised, that's where we do most of our business. 0:15:32.280 --> 0:15:35.800 We need to support our essays with further digital support 0:15:35.960 --> 0:15:39.000 the way the workstations work, the banking products. As you know, 0:15:39.080 --> 0:15:42.600 we we also launched further improvement of banking products there 0:15:42.600 --> 0:15:45.040 and you see that coming through also this quarter. Then 0:15:45.040 --> 0:15:48.840 on the more family Officer site, more bespoke solutions. And 0:15:48.880 --> 0:15:51.600 then where we will where we're also looking at is 0:15:51.680 --> 0:15:54.280 the kind of the local wealth banners we would call it, 0:15:54.520 --> 0:15:57.320 where we also have too many of workplace wealth clients 0:15:57.400 --> 0:15:59.720 and see how we can improve the digital experience there 0:15:59.720 --> 0:16:04.560 where we mode advice. But us CEO, are you still 0:16:04.720 --> 0:16:07.960 behind this strategy that you that you want to do 0:16:08.120 --> 0:16:10.640 a deal to take yourself up and over in that 0:16:10.680 --> 0:16:12.640 space in the United States of America? Is not still 0:16:13.000 --> 0:16:15.400 coolly your belief I want to do the deal. I 0:16:15.480 --> 0:16:17.320 want to grow that portion of the business that I 0:16:17.320 --> 0:16:19.920 went after at the start of the year. Well, the 0:16:19.960 --> 0:16:22.120 strategy was never to do a deal. The strategy was 0:16:22.120 --> 0:16:26.280 always to grow organically and the opportunities that you can 0:16:26.480 --> 0:16:29.600 look at in terms of accelerating your organic plans, whether 0:16:29.680 --> 0:16:32.360 it is getting more technology and board like like what 0:16:32.480 --> 0:16:37.160 this transaction was about, or getting more exposure to specific clientele, 0:16:37.240 --> 0:16:40.320 which you know you could see also for for for 0:16:40.440 --> 0:16:43.360 future deals. But it's not like we're looking and on 0:16:43.440 --> 0:16:46.200 the hunt for deals. We are really focused on our 0:16:46.280 --> 0:16:50.239 organic growth strategy. In the US, we talked about volatility. 0:16:50.240 --> 0:16:53.640 There has been huge volatility in China. The stories that 0:16:53.680 --> 0:16:57.400 we're writing is that She's wrapped the power, causes foreigners 0:16:57.440 --> 0:17:00.320 to flee. Has there been a material ship by your lines, 0:17:00.400 --> 0:17:03.320 the leveraging, I know is part of the story in Asia. 0:17:03.560 --> 0:17:05.880 Were talking to me about China in terms of your 0:17:05.920 --> 0:17:10.040 biggest fear around this granted by she Clearly Asia and 0:17:10.160 --> 0:17:13.320 China have some kind of connection there right So from 0:17:13.359 --> 0:17:16.000 that perspective, indeed, part of the leveraging is to be 0:17:16.040 --> 0:17:19.920 explained by how the markets in Asia have performed. Having 0:17:19.920 --> 0:17:22.760 said that, you know, man As we have been investing 0:17:22.800 --> 0:17:25.240 in China for decades and we are d goo to 0:17:25.440 --> 0:17:29.520 bank on the investing banking side for China and our 0:17:29.560 --> 0:17:31.960 clients rely on that. And even this quarter we saw 0:17:32.400 --> 0:17:35.199 good business. We were involved and three out of the 0:17:35.240 --> 0:17:38.560 four ib os in Hong Kong, the largest IBO in 0:17:38.640 --> 0:17:41.800 Hong Kong as well, so equity capital marks were back 0:17:41.920 --> 0:17:46.840 number one in the region, also the China connected business. 0:17:47.320 --> 0:17:50.280 And now on the on the other side, with the 0:17:50.440 --> 0:17:53.600 confirmation of she to take another term, clearly we have 0:17:53.680 --> 0:17:55.760 to look at, you know, whether some of his policies 0:17:55.760 --> 0:17:58.600 that he already kind of issued or ast year, whether 0:17:58.600 --> 0:18:01.280 they will continue, like the Common Prosperity Policy, which is 0:18:01.280 --> 0:18:03.960 an important one in order to have a more equal 0:18:04.000 --> 0:18:09.760 divideed wealth across the different UH classes. And that does 0:18:09.840 --> 0:18:12.679 provide us for an opportunity to develop for the asset 0:18:12.720 --> 0:18:16.439 management and wealth management services at a capital in a 0:18:16.480 --> 0:18:19.320 capital right way in London is a sort of a 0:18:19.359 --> 0:18:21.160 different setting for both of us to do the set 0:18:21.200 --> 0:18:24.679 of numbers. Chaos in politics, chayous in currency, chaos in 0:18:24.720 --> 0:18:27.639 the UK, by the way, chaos. Are you committed to 0:18:27.680 --> 0:18:31.240 the UK? We are committed to the UK. We're today 0:18:31.280 --> 0:18:34.119 here in the UK. We have a large office here 0:18:34.119 --> 0:18:36.480 in the UK. We run our investment banking activities from 0:18:36.480 --> 0:18:41.360 the UK. London is still a big talent pool for 0:18:41.400 --> 0:18:44.679 the financial world, so that's important as well, uh, and 0:18:44.720 --> 0:18:47.000 I do think that with you know, the new Prime 0:18:47.000 --> 0:18:52.000 minister coming on board, that that this will be starting 0:18:52.040 --> 0:18:57.240 point for more predictability, more consistency, with that more stability, 0:18:57.520 --> 0:19:01.080 what does it take to get global investors confidence ah 0:19:01.119 --> 0:19:05.040 in Britain exactly, it is more predictability and more cosistency 0:19:05.040 --> 0:19:08.359 and with that more stability, making sure that you find 0:19:08.400 --> 0:19:13.280 the right bounce between fiscal stimulas uh, gapping energy prices 0:19:13.359 --> 0:19:19.720 and your your center bank uh trying to find inflation. 0:19:20.080 --> 0:19:22.639 I think that should all be in sync and I 0:19:22.680 --> 0:19:25.720 think that's what the market is looking for. That's UBS 0:19:25.760 --> 0:19:28.560 CEO Ralph Hammers speaking with Bloomberg's Menace Cranny. You catch 0:19:28.600 --> 0:19:31.080 the full conversation on Bloomberg dot com and on the 0:19:31.119 --> 0:19:33.879 Bloomberg terminal. UBS shares right now are up four and 0:19:33.880 --> 0:19:37.119 a half percent in Zurich watching earnings from General Electric 0:19:37.119 --> 0:19:40.120 across the Bloomberg terminal. Third quarter adjusted earnings per share 0:19:40.200 --> 0:19:43.040 came out much lower than analysts estimates, and the company 0:19:43.080 --> 0:19:45.840 is also lowering its outlook for the year. GE shares 0:19:45.920 --> 0:19:49.280 are now are down seven point three percent in the 0:19:49.320 --> 0:19:53.400 pre market. SMP futures are down sixteen points down. Futures 0:19:53.400 --> 0:19:55.879 down a hundred forty five and Nastack futures are lower 0:19:56.200 --> 0:19:59.399 by twenty four points. Ten. Your treasury is up sixt 0:20:00.040 --> 0:20:07.960 can sealed four point. This is Bloomberg, Bloomberg eleven three 0:20:07.960 --> 0:20:10.440 oh weather mostly cloudy, patchy, drizzle and fog. Chance for 0:20:10.480 --> 0:20:12.720 a shower this afternoon with a high in year seventy degrees. 0:20:12.760 --> 0:20:15.879 A few more showers possible Tomorrow, high near seventy sunshine 0:20:15.920 --> 0:20:19.000 thursdayvid cooler hies in the upper sixties right now sixty 0:20:19.080 --> 0:20:25.880 three degrees. Broadcasting live from the Bloomberg Interactive Broker Studio 0:20:26.000 --> 0:20:29.879 in New York, Bloomberg Living for you to Washington, d C. Bloomberg, 0:20:30.840 --> 0:20:34.679 to Boston, Bloomberg one O six one to San Francisco Bloomberg, 0:20:34.680 --> 0:20:37.320 and I'm sixteen to the country, Sirius XM to the 0:20:37.400 --> 0:20:40.600 one nineteen and around the globe the Bloomberg Business apt 0:20:40.720 --> 0:20:50.480 and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's 0:20:50.480 --> 0:20:52.760 six thirty on Wall Street. Good morning. I'm Nathan Hager 0:20:53.160 --> 0:20:56.000 and I'm Karen Moscow, and we're just about three hours 0:20:56.040 --> 0:20:58.240 away from the open of US trading. Time for the 0:20:58.240 --> 0:21:00.320 five things that you need to notice dark your day. 0:21:00.400 --> 0:21:05.280 Brought to you by Interactive Brokers. Ib k Our Investment 0:21:05.280 --> 0:21:08.639 Advisors switched to Interactive Brokers for lowest cost global trading 0:21:08.640 --> 0:21:12.000 and turnkey custody solutions, no ticket charges and no conflicts 0:21:12.040 --> 0:21:14.720 of your interests at ibkr dot com. Slash r i 0:21:15.000 --> 0:21:18.200 a a first Futures are lower following two straight days 0:21:18.200 --> 0:21:21.359 of gains. Steady earnings and hope for slowing rate hikes 0:21:21.359 --> 0:21:24.959 help fuel the rally. Robert Stimpson, chief investment officer with 0:21:25.000 --> 0:21:28.919 Oak Associate Funds, says, recession or not, traders should expect 0:21:28.960 --> 0:21:32.639 choppiness ahead. Our recession doesn't matter for stocks. They simply 0:21:32.680 --> 0:21:35.159 do not like a slowing economy and that is what 0:21:35.200 --> 0:21:37.879 we have. So whether it's a mid cycle slowdown or 0:21:37.880 --> 0:21:41.400 a soft landing or a recession, stocks tend to struggle 0:21:41.480 --> 0:21:44.480 when the economy is slowing and that's the environment we're in. 0:21:44.640 --> 0:21:46.800 So the last week may have been better, but we 0:21:46.880 --> 0:21:49.120 do think it's going to be well into next year 0:21:49.359 --> 0:21:52.800 before stocks get further signals that have sustained advance is 0:21:52.840 --> 0:21:57.160 really possible. Robert Stimpson with Oak Associate Funds believe stocks 0:21:57.160 --> 0:22:00.119 have not bottom just yet over europe Care and she 0:22:00.320 --> 0:22:03.280 Sunak is said to become the UK's third prime minister 0:22:03.480 --> 0:22:06.119 in as many months. Sunak Is said to speak in 0:22:06.240 --> 0:22:08.040 just a couple of minutes. Stick with us. We will 0:22:08.040 --> 0:22:10.560