Speaker 1: Live from the Bloomberg into Raptor Berger Studios. Is this
Speaker 1: Bloomberg Daybreak for Tuesday, October two coming up this hour.
Speaker 1: Stocks are steady as investors await an onslaught of big
Speaker 1: tech earnings. Eb S shares gained the most since June.
Speaker 1: We'll talk with the bank CEO. Rieshi Sunak is set
Speaker 1: to become the UK's third prime minister in his many months.
Speaker 1: And Adidas has said to cut ties with Kanye West
Speaker 1: and rest in an attack in the New York subway system. Plus,
Speaker 1: it's debate night for Democratic Governor hokel and a Republican challenger,
Speaker 1: Les Eldon. I'm Michael Barr more ahead of John Stash Howard.
Speaker 1: Sports than Nicks beat Orlando, than Nets lost in Memphis,
Speaker 1: the Bears beat the Patriots in Monday Night Football. That's
Speaker 1: all Train ahead on Bloomberg day Break on Bloomberg eleven
Speaker 1: Free on New York, Bloomberg one, Washington, d C, Bloomberg
Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco
Speaker 1: Sirius XM one nineteen and around the world on Bloomberg
Speaker 1: Radio dot Com and The Bloomberg Business Side. And good Morning,
Speaker 1: I'm Karen Moscow. I'm Nathan Hager. Bloomberg Daybreak is brought
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Speaker 1: slash Tech. Well US futures are lower this morning six
Speaker 1: o one on Wall Street, and we check the markets
Speaker 1: every fifteen minutes throughout the trading day on Bloomberg S
Speaker 1: and P futures down sixteen points down, futures down a
Speaker 1: hundred forty five and as Dagg features down twenty seven.
Speaker 1: The tenure Treasury at fourteen thirty seconds, he had four
Speaker 1: point one eight percent yield on the two year four
Speaker 1: point four seven percent nine. Mex screwed oil is down
Speaker 1: one and a half percent on a dollar twenty five
Speaker 1: and eighty three dollars thirty three cents in barrel called
Speaker 1: mex gold down six ten percent or nine dollars ninety
Speaker 1: cents at sixteen forty four twenty announced and the euro
Speaker 1: point five against the dollar. Nathan Well Karen stocks are
Speaker 1: coming off two straight days of gains. Yesterday saw broad
Speaker 1: based Drilly, with more than eight percent of stocks in
Speaker 1: the SNP index closing higher earnings, Optimism and speculation the
Speaker 1: Fed will slow its pace of interest rate hikes helps
Speaker 1: fuel the one point two percent gain. Ben Kirby's cohead
Speaker 1: of investments at Thornburg Investment Management. You know, when you
Speaker 1: look at the surveys of bowls versus bears, there's way
Speaker 1: more bears than there have been in a in a
Speaker 1: long time relative to bowl so that at least augers
Speaker 1: I think for the potential for for a snap back,
Speaker 1: um how sustainable that is as the economy slows again,
Speaker 1: That's that's kind of big question. Thornburg Investment Managements. Ben
Speaker 1: Kirby thinks we are nearing the peak for interest rates
Speaker 1: and Asian Nathan, it was a volatile session following yesterday's
Speaker 1: historic sell off. A benchmark tech index in Hong Kong
Speaker 1: bounced between gains and losses and eventually closed up more
Speaker 1: than one percent today. That indexx plunge more than seven
Speaker 1: percent yesterday on the prospects of more market and friendly
Speaker 1: policies during President She Jun Ping's third term. While President
Speaker 1: She stacks China's top posts with allies. Karen white House
Speaker 1: advisors are working on a meeting between the communist leader
Speaker 1: and President Biden. Amy Morris has details from our Bloomberg
Speaker 1: newsroom in Washington. State Department spokesman Ed Price says she's
Speaker 1: move effectively tearing down divisions between party and state. Won't
Speaker 1: change the US approach to China, a strategy that includes
Speaker 1: competing on security matters while cooperating where they can on
Speaker 1: global issues like climate change, global health, and counter narcotics.
Speaker 1: National Security Council spokesman John Kirby says they're working on
Speaker 1: a possible meeting at the G twenty in Bali next month.
Speaker 1: Even as there are fewer voices at the top two questions,
Speaker 1: she's more restrictive policies in Washington. I'm Amy Morris, Bloomberg Daybreak, right, Amy,
Speaker 1: thanks you. In Europe today, Rishi Sunak is said to
Speaker 1: become the UK's third Prime minister and as many months
Speaker 1: and we go to London and get the very latest
Speaker 1: at Bloomberg's un Podska, morning you, and good morning Karen
Speaker 1: and Nathan. It's just seven weeks since liszt Trust travel
Speaker 1: to meet Queen Elizabeth to become Prime Minister. Later today,
Speaker 1: the UK will have another new leader, former Chancellor Rishi sooner.
Speaker 1: We'll meet King Charles this morning. After winning the supports
Speaker 1: of Conservative lawmakers, his first task as Britain's new prime
Speaker 1: minister will be to appoint his top team as he
Speaker 1: seeks to reassure nervous investors. Jeremy Hunt is likely to
Speaker 1: remain as Chancellor in charge of the nation's finances in London.
Speaker 1: I'm you imports in back day, break you and thank you.
Speaker 1: Let's get back to markets now where it is a
Speaker 1: busy day for earnings. Shares of HSBC are down more
Speaker 1: than seven percent. The bank reported higher than expected charges
Speaker 1: for possible loan losses in its third quarter. HSBC did
Speaker 1: join other banks and posting profits that beat estimates, but
Speaker 1: its low lost provision was almost a third higher than
Speaker 1: a Bloomberg compiled consensus. On the flip side, shares of
Speaker 1: UBS are up more than four percent. The Swiss Bank
Speaker 1: reported better than expected profit in the third quarter as
Speaker 1: higher interest race helped offset a lower client activity. Be
Speaker 1: caught up with UBS CEO Ralph Hummers. Volatility volatinity in
Speaker 1: the foreign change markets, where we profited a lot actually
Speaker 1: dis quarter which you also see that volatility leading to
Speaker 1: further concertainty with our emphasist with our clients right on
Speaker 1: the well side, and that in certainly is actually it
Speaker 1: translated into the need for further guidance of our clients
Speaker 1: right and again we need more guidance. EBS CEO Ralph
Speaker 1: Hammers made the comments in an interview with Bloomberg's Menace
Speaker 1: Cranny Here. More of that conversation coming up shortly right
Speaker 1: here on Bloomberg Daybreak Here in the U s care
Speaker 1: in a busy week for tech earnings kicks off this afternoon,
Speaker 1: with both Alphabet and Microsoft reporting, we get a preview
Speaker 1: on Microsoft from Bloomberg's Jeff Bellinger. Bloomberg Intelligence says the
Speaker 1: software giant could potentially surpass the twenty four consensus for
Speaker 1: sales growth. Microsoft is seen as the company that stands
Speaker 1: to benefit the most from the growing digital shift as
Speaker 1: clients upgrade their technology, but the company's earnings come at
Speaker 1: a time when there is foreign exchange pressure and there
Speaker 1: are concerns about weakness in its PC business. Microsoft is
Speaker 1: in the process of laying off about one thousand workers
Speaker 1: across multiple divisions. Jeff Inger, Bloomberg Daybreak Right, Jeff Thanks
Speaker 1: and other corporate News This morning, it looks like Adidas's
Speaker 1: cutting ties with Kanye West. We get the details from
Speaker 1: Bloomberg's Lisa Matteo. Bloomberg News has learned the German sports
Speaker 1: company plans to end its partnership with the rapper and
Speaker 1: designer following a rash of offensive behavior. West, who now
Speaker 1: goes by YA, has made controversial statements, including anti Semitic
Speaker 1: social media posts in recent weeks. The Adida's decision follows
Speaker 1: weeks of deliberations inside the company, which over the past
Speaker 1: decade has built the Easy Line together with Ya, into
Speaker 1: a brand that's accounted for as much as eight percent
Speaker 1: of Adidas's total sales. According to several estimates from Wall
Speaker 1: Street analysts, Adidas would join Gap and Carrying's Balenciaga fashion
Speaker 1: label and prematurely cutting ties with West. Lisa Mateo Bloomberg
Speaker 1: daybreak right, Lisa, thanks, and shares of Adidas are falling
Speaker 1: on the news of its breakup with Kanye West. Shares
Speaker 1: are down almost four percent in Frankfurt, and we're watching
Speaker 1: earnings cross the Bloomberg terminal. Karen from Ups. They've come
Speaker 1: in with just earnings per share for the third quarter
Speaker 1: of the beat. The average analyst estimate Right now, the
Speaker 1: shares are a little changed in early trading. S and
Speaker 1: P futures are down thirteen points, STOLE futures down a
Speaker 1: hundred eighteen, and DAS deck futures are lower by twenty points.
Speaker 1: Straight ahead your latest local headlines and a check of sports.
Speaker 1: This is Bloomberg. It sounds six oh seven on Wall
Speaker 1: Street where sixty three degrees in Central Park got a
Speaker 1: crash on the l I E eastbound at exit forty two.
Speaker 1: Details coming up in traffic. First, Michael Bars here with
Speaker 1: what else is going on in New York and around
Speaker 1: the world. Michael, thank you very much. Nathan Man is
Speaker 1: in custody in New York City for last week's violent
Speaker 1: and unprovoked attack on a subway writer. Forty one year
Speaker 1: old lem Crai McCrae, who police say has an extensive
Speaker 1: criminal history, is now accused of shoving thirty two year
Speaker 1: old David Martin onto the train tracks at a Brooklyn
Speaker 1: subway stop last Friday. Martin suffered a broken collar bone. Meanwhile,
Speaker 1: commuters are now searching out places along railings on the
Speaker 1: platform where they feel they can't be assaulted. The m
Speaker 1: t A is now also trying to gain the authority
Speaker 1: to ban people with convictions that include violent crime underground
Speaker 1: from using the subway system. There was a tragic accident
Speaker 1: in the subway in Manhattan. Authorities say a commuter was
Speaker 1: struck and killed by a one train at fifty ninth
Speaker 1: Street Columbus Circle yesterday afternoon after getting caught in the doors.
Speaker 1: It is debate night between New York Democratic Governor Kathy
Speaker 1: Hokel and her Republican challenger, Lee's Elden. The two are
Speaker 1: expected to debate such topics as crime and the state's
Speaker 1: bail reform laws. Florida Governor Rhonda Santis and former governor
Speaker 1: Charlie Cris debated ahead of next month's election. Chris asked
Speaker 1: the Santis about a possible run for governor in four
Speaker 1: and asked him to commit to a full term as
Speaker 1: governor if he wins. You're running for governor, why don't
Speaker 1: you look in the eyes of the people of state
Speaker 1: of Florida and say to them, if you're re elected,
Speaker 1: you will serve a full four year term as governor.
Speaker 1: Yes or no. Governor de Santist defended laws passed during
Speaker 1: his term that restricted the teaching of racial and gender
Speaker 1: issues in Florida schools. I'm proud of our history. I
Speaker 1: don't want to teach kids to hate our country. I
Speaker 1: don't want to teach kids to hate each other. And
Speaker 1: the way to stop discrimination on the basis of race
Speaker 1: is to stop discriminating on the basis of race. To
Speaker 1: debate airing on WPEC, character actor Leslie Jordan, who appeared
Speaker 1: on dozens of TV shows, has died. Jordan, who was
Speaker 1: four ft eleven, got his big break on the comedy
Speaker 1: show Murphy Brown. Jordan Azzle played Beverly Leslie on the
Speaker 1: show Will and Grace. Sharing this, they commus a great
Speaker 1: shock to you, but I'm a homo sexual. Leslie Jordan,
Speaker 1: who died in a car accident, was sixty seven Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quickday, powered by more than seven journalists mentalists more
Speaker 1: than a hundred twenty countries. On Michael bar This is Bloomberg, Nathan,
Speaker 1: Thanks Michael. Coming up to six ten on Wall Street.
Speaker 1: Time for the Bloomberg Sports Update. Bright to you by
Speaker 1: tri State OUTI with John Senshaw. All right after the
Speaker 1: Jet seven won four in or Opera aps tunes into
Speaker 1: the Monday night game to watch the Patriots two of
Speaker 1: the next Jets three games, or versus New England, who
Speaker 1: got surprisingly blown out at home by Chicago thirty three
Speaker 1: to fourty. The Bears score the last twenty three points.
Speaker 1: They out rushed the pass two forty three to seventy.
Speaker 1: They four spoor turnovers. Mac Jones returned from his ankle
Speaker 1: injury but got bens for rookie Bailey Zappi, and Bill
Speaker 1: Belichick said he's not sure who his quarterback will be
Speaker 1: this Sunday at MetLife that Jetwood in Denver was costly.
Speaker 1: Rookie running back Breese Hall tours a c L guard
Speaker 1: Elijah Vera Tucker Torres triceps and both are done for
Speaker 1: the year. Jets coaches Robert Sala, you don't see the NFL,
Speaker 1: and uh you know, the sex man, Michael Carter has
Speaker 1: proven that he can carry the load, and uh Ti
Speaker 1: Johnson has done a really nice job of and with
Speaker 1: our offensive line, because offensive line we've been, you know,
Speaker 1: it's been all year with guys shuffling, and just got
Speaker 1: a lot of faith in the guys that are here
Speaker 1: to be able to step in and continue to do
Speaker 1: the job that was done before before them, and the
Speaker 1: Jets last night might a trade they get a running back.
Speaker 1: They sent the late round draft pick to acquire James
Speaker 1: Robinson from Jacksonville. That's where the Giants just won their
Speaker 1: fourth in a row, but they saw three offensive starters
Speaker 1: go down knee injuries to guard Ben Brettison and rookie
Speaker 1: tackle Evin Neil, and i injury the rookie tight end
Speaker 1: Daniel Bellinger. None will play this week in Seattle, but
Speaker 1: all could be back later in the season at the
Speaker 1: Guard next be in Orlando won fifteen one or two.
Speaker 1: Julius Randall twenty five points. Jalen Brunson had twenty one
Speaker 1: in Our Day Better twenty in Memphis, thirty seven points
Speaker 1: for both Kevin Durant and Kyrie Irving, but thirty eight
Speaker 1: her both John Morant and Desmond Baine, and the Grizzlies
Speaker 1: beat the Nets one thirty four one twenty four The
Speaker 1: Devil's Loft to Washington six three. John Stash Downward, Bloomberg
Speaker 1: Sports thanks John SMP features down fourteen points, the futures down.
Speaker 1: That future is lowered by twenty two points. This is Bloomberg.
Speaker 1: Bloomberg Sports was brought to you by Audie Don't let
Speaker 1: someone else drive off and the outie model you've always wanted.
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Speaker 1: com for more information, markets, headlines and breaking news twenty
Speaker 1: four hours a day. At Bloomberg dot Com the Bloomberg
Speaker 1: Business Out and at Bloomberg Quicktape is a Bloombern Business
Speaker 1: Flash and I'm Karen Moscow. This updates brought to you
Speaker 1: by b n Y Mellen's Perishing Learned Why the world's
Speaker 1: most sophisticated wealth management and institutional firms rely on Perishing
Speaker 1: to help them improve profitability, create efficiency, attract talent, and
Speaker 1: manage risk. At Pershing and dot com, they continue to
Speaker 1: watch shares a ups. They're up about three tents of
Speaker 1: a percent this morning after third quarter profit beat analysts estimates.
Speaker 1: US dot inn X futures, meanwhile, are falling on another
Speaker 1: busy day for corporate earnings. S ANDP futures are done
Speaker 1: about seventeen points and now futures down fifty two. NASDAG
Speaker 1: futures down in thirty ten year treasury of fifteen thirty seconds.
Speaker 1: You hald four point one seven percent. They yield on
Speaker 1: the two year four point four seven percent. Nine x
Speaker 1: screwed oil is down one and a half percent, down
Speaker 1: a dollar twenty nine and eighty three dollars twenty seven
Speaker 1: cents a barrel. The euro point nine six seven against
Speaker 1: the dollar. That's a Bloomberg business flash. Now here's Michael
Speaker 1: Barr with more on what's going on around the world.
Speaker 1: Michael Karren, thank you very much. Rishi Sunac is due
Speaker 1: to be installed as Britain's third Prime Minister of the
Speaker 1: year by King Charles the Third and then his first
Speaker 1: task is appointing a cabinet that can wrestle with the
Speaker 1: UK's economic and political prices. Sunach was elected as leader
Speaker 1: of the governing Conservative Party after the brief term of
Speaker 1: Liz Trusts. Six Palestinians were killed in the West Bank,
Speaker 1: over nine and more than thirty were injured as an
Speaker 1: Israeli military operation targets a local militia that has carried
Speaker 1: out attacks in the NBA. The next one, the Nets
Speaker 1: and Celtics lost in hockey, The Capital's Beat, The Devil's
Speaker 1: six three Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quicktake powered by more than twenty
Speaker 1: seven hundred journalist and analysts in more than one twenty countries.
Speaker 1: Michael Barr and this is Bloomberg. Michael. Thanks six nineteen
Speaker 1: now on Wall Street Live from the Bloomberg Interactive Broker Studios.
Speaker 1: This is Bloomberg Daybreak. We want to bring you back
Speaker 1: down to our interview with the CEO of UBS, Ralph Hammers.
Speaker 1: He spoke with Bloomberg's Mannis Cranny after the Swiss bank
Speaker 1: beat the third quarter earnings estimates. Along with talking about
Speaker 1: the results, they discussed the outlook for US rates, why
Speaker 1: UBS is committed to the UK and investing in China.
Speaker 1: One of the things that you hung a hat on
Speaker 1: and we chatted about it was your wealth from DAL
Speaker 1: that deal has not gone away, comps, whatever word we choose.
Speaker 1: What the market wants to know was do you pull
Speaker 1: the plug on that? The German pull a blog on that?
Speaker 1: Where did they deal have fractures? Well, I think it
Speaker 1: changing tactics is absolutely not a change in strategy and
Speaker 1: I think that's the the important message for our plans
Speaker 1: if it comes to US growth in the US market.
Speaker 1: Neua's market. We're as you know, we are heavily invested.
Speaker 1: It's a it's a very uh important part of our
Speaker 1: strategy to grow there in the three different segments and
Speaker 1: personas that we that we see the core segment is
Speaker 1: personally advised, that's where we do most of our business.
Speaker 1: We need to support our essays with further digital support
Speaker 1: the way the workstations work, the banking products. As you know,
Speaker 1: we we also launched further improvement of banking products there
Speaker 1: and you see that coming through also this quarter. Then
Speaker 1: on the more family Officer site, more bespoke solutions. And
Speaker 1: then where we will where we're also looking at is
Speaker 1: the kind of the local wealth banners we would call it,
Speaker 1: where we also have too many of workplace wealth clients
Speaker 1: and see how we can improve the digital experience there
Speaker 1: where we mode advice. But us CEO, are you still
Speaker 1: behind this strategy that you that you want to do
Speaker 1: a deal to take yourself up and over in that
Speaker 1: space in the United States of America? Is not still
Speaker 1: coolly your belief I want to do the deal. I
Speaker 1: want to grow that portion of the business that I
Speaker 1: went after at the start of the year. Well, the
Speaker 1: strategy was never to do a deal. The strategy was
Speaker 1: always to grow organically and the opportunities that you can
Speaker 1: look at in terms of accelerating your organic plans, whether
Speaker 1: it is getting more technology and board like like what
Speaker 1: this transaction was about, or getting more exposure to specific clientele,
Speaker 1: which you know you could see also for for for
Speaker 1: future deals. But it's not like we're looking and on
Speaker 1: the hunt for deals. We are really focused on our
Speaker 1: organic growth strategy. In the US, we talked about volatility.
Speaker 1: There has been huge volatility in China. The stories that
Speaker 1: we're writing is that She's wrapped the power, causes foreigners
Speaker 1: to flee. Has there been a material ship by your lines,
Speaker 1: the leveraging, I know is part of the story in Asia.
Speaker 1: Were talking to me about China in terms of your
Speaker 1: biggest fear around this granted by she Clearly Asia and
Speaker 1: China have some kind of connection there right So from
Speaker 1: that perspective, indeed, part of the leveraging is to be
Speaker 1: explained by how the markets in Asia have performed. Having
Speaker 1: said that, you know, man As we have been investing
Speaker 1: in China for decades and we are d goo to
Speaker 1: bank on the investing banking side for China and our
Speaker 1: clients rely on that. And even this quarter we saw
Speaker 1: good business. We were involved and three out of the
Speaker 1: four ib os in Hong Kong, the largest IBO in
Speaker 1: Hong Kong as well, so equity capital marks were back
Speaker 1: number one in the region, also the China connected business.
Speaker 1: And now on the on the other side, with the
Speaker 1: confirmation of she to take another term, clearly we have
Speaker 1: to look at, you know, whether some of his policies
Speaker 1: that he already kind of issued or ast year, whether
Speaker 1: they will continue, like the Common Prosperity Policy, which is
Speaker 1: an important one in order to have a more equal
Speaker 1: divideed wealth across the different UH classes. And that does
Speaker 1: provide us for an opportunity to develop for the asset
Speaker 1: management and wealth management services at a capital in a
Speaker 1: capital right way in London is a sort of a
Speaker 1: different setting for both of us to do the set
Speaker 1: of numbers. Chaos in politics, chayous in currency, chaos in
Speaker 1: the UK, by the way, chaos. Are you committed to
Speaker 1: the UK? We are committed to the UK. We're today
Speaker 1: here in the UK. We have a large office here
Speaker 1: in the UK. We run our investment banking activities from
Speaker 1: the UK. London is still a big talent pool for
Speaker 1: the financial world, so that's important as well, uh, and
Speaker 1: I do think that with you know, the new Prime
Speaker 1: minister coming on board, that that this will be starting
Speaker 1: point for more predictability, more consistency, with that more stability,
Speaker 1: what does it take to get global investors confidence ah
Speaker 1: in Britain exactly, it is more predictability and more cosistency
Speaker 1: and with that more stability, making sure that you find
Speaker 1: the right bounce between fiscal stimulas uh, gapping energy prices
Speaker 1: and your your center bank uh trying to find inflation.
Speaker 1: I think that should all be in sync and I
Speaker 1: think that's what the market is looking for. That's UBS
Speaker 1: CEO Ralph Hammers speaking with Bloomberg's Menace Cranny. You catch
Speaker 1: the full conversation on Bloomberg dot com and on the
Speaker 1: Bloomberg terminal. UBS shares right now are up four and
Speaker 1: a half percent in Zurich watching earnings from General Electric
Speaker 1: across the Bloomberg terminal. Third quarter adjusted earnings per share
Speaker 1: came out much lower than analysts estimates, and the company
Speaker 1: is also lowering its outlook for the year. GE shares
Speaker 1: are now are down seven point three percent in the
Speaker 1: pre market. SMP futures are down sixteen points down. Futures
Speaker 1: down a hundred forty five and Nastack futures are lower
Speaker 1: by twenty four points. Ten. Your treasury is up sixt
Speaker 1: can sealed four point. This is Bloomberg, Bloomberg eleven three
Speaker 1: oh weather mostly cloudy, patchy, drizzle and fog. Chance for
Speaker 1: a shower this afternoon with a high in year seventy degrees.
Speaker 1: A few more showers possible Tomorrow, high near seventy sunshine
Speaker 1: thursdayvid cooler hies in the upper sixties right now sixty
Speaker 1: three degrees. Broadcasting live from the Bloomberg Interactive Broker Studio
Speaker 1: in New York, Bloomberg Living for you to Washington, d C. Bloomberg,
Speaker 1: to Boston, Bloomberg one O six one to San Francisco Bloomberg,
Speaker 1: and I'm sixteen to the country, Sirius XM to the
Speaker 1: one nineteen and around the globe the Bloomberg Business apt
Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's
Speaker 1: six thirty on Wall Street. Good morning. I'm Nathan Hager
Speaker 1: and I'm Karen Moscow, and we're just about three hours
Speaker 1: away from the open of US trading. Time for the
Speaker 1: five things that you need to notice dark your day.
Speaker 1: Brought to you by Interactive Brokers. Ib k Our Investment
Speaker 1: Advisors switched to Interactive Brokers for lowest cost global trading
Speaker 1: and turnkey custody solutions, no ticket charges and no conflicts
Speaker 1: of your interests at ibkr dot com. Slash r i
Speaker 1: a a first Futures are lower following two straight days
Speaker 1: of gains. Steady earnings and hope for slowing rate hikes
Speaker 1: help fuel the rally. Robert Stimpson, chief investment officer with
Speaker 1: Oak Associate Funds, says, recession or not, traders should expect
Speaker 1: choppiness ahead. Our recession doesn't matter for stocks. They simply
Speaker 1: do not like a slowing economy and that is what
Speaker 1: we have. So whether it's a mid cycle slowdown or
Speaker 1: a soft landing or a recession, stocks tend to struggle
Speaker 1: when the economy is slowing and that's the environment we're in.
Speaker 1: So the last week may have been better, but we
Speaker 1: do think it's going to be well into next year
Speaker 1: before stocks get further signals that have sustained advance is
Speaker 1: really possible. Robert Stimpson with Oak Associate Funds believe stocks
Speaker 1: have not bottom just yet over europe Care and she
Speaker 1: Sunak is said to become the UK's third prime minister
Speaker 1: in as many months. Sunak Is said to speak in
Speaker 1: just a couple of minutes. Stick with us. We will
Speaker 1: bring you those comments live right here on Bloomberg Radio
Speaker 1: and on Bloomberg Television. But the earnings now, Nathan, Shares
Speaker 1: of HSBC are down more than seven percent in London.
Speaker 1: That's after the bank reported higher than expected charges for
Speaker 1: possible loan losses. On the flip side, Sharon, we're watching, Karen,
Speaker 1: sorry about that. Shairs of UBS are up nearly five percent.
Speaker 1: The Swiss Bank reported better than expected profit. We spoke
Speaker 1: with UBS CEO Ralph Hammers about the results, plus about
Speaker 1: volatility and foreign exchange to also see that volatility leading
Speaker 1: to further uncertainty, and that uncertainty is actually translated into
Speaker 1: the need for further guidance. So nine of our clients
Speaker 1: right again, we need more guidance. And if they want
Speaker 1: more guidance, that's why they bring their money to us,
Speaker 1: and that's why we sort of post to flow so
Speaker 1: strongly coming into our franchise this quarter. UBS CEO Ralph
Speaker 1: Hammers spoke with Bloomberg's Manus Cranny. He says he sees
Speaker 1: more clients sitting on the sidelines in the current climate,
Speaker 1: and Nathan mack here in the U s G shares
Speaker 1: are now down more than three percent. Earnings missed analysts estimates,
Speaker 1: and the company cut its full year forecast. Finally, Karen,
Speaker 1: we have a high profile break up this morning. Adidas
Speaker 1: plans to end its partnership with Ya, the man formerly
Speaker 1: known as Kanye West. Move follows a rash of offensive
Speaker 1: behavior that includes anti Semitic social media posts. And that's
Speaker 1: the five things you need to notice start your day.
Speaker 1: Brought to you by Interactive Brokers Well Futures they're following
Speaker 1: this morning. S and P futures down fourteen points down,
Speaker 1: futures down one thirty five and NASDAG futures are down nineteen.
Speaker 1: The decks in Germany is down eight tents of upper set,
Speaker 1: CAC in Paris up three tents of upper cent, and
Speaker 1: the foot SEE one hundred down six tenths of upper cent.
Speaker 1: The n K to twenty five in Japan gained one percent.
Speaker 1: In the Hank Sang in Hong Kong down a tenth
Speaker 1: of upper set. Ten year Treasury up sixteen thirty seconds,
Speaker 1: held four point one seven percent yield on the two
Speaker 1: year four point four six percent. Nine x screwed oils
Speaker 1: falling down one point three percent on a dollar seven
Speaker 1: at eighty three dollars fifty one cents. A barrel comic
Speaker 1: school is down seven tenths percent or ten dollars eighty
Speaker 1: cents at sixteen forty three forty announce the euro point
Speaker 1: nine six four against the dollar British found one point
Speaker 1: one three two nine and the end at one forty
Speaker 1: eight point nine three. Look at a bitcoin this morning,
Speaker 1: it's down half percent. It's in nineteen thousand, two hundred
Speaker 1: eighty dollars. Nathan, Okay, Karen, thank you. It is now
Speaker 1: six thirty four on Wall Street. As we await the
Speaker 1: first remarks from Rieschi Sunac as the newest Prime Minister
Speaker 1: of the United Kingdom, Let's bring in Michael Barr for
Speaker 1: a look at what else is going on around the
Speaker 1: world this morning. Good morning, Michael, Good morning, Nathan. As
Speaker 1: you mentioned, Riese Sunac will give his first speech as
Speaker 1: UK Prime Minister in a few minutes. The person he replaced,
Speaker 1: Liz Trusts, only last at forty four days in office today.
Speaker 1: Trust said it was an honor to serve as Prime
Speaker 1: Minister and wish Sunac well. I'll country continues to battle
Speaker 1: through your storm. But I believe in Britain. I believe
Speaker 1: in the British people, and I know that brighter days
Speaker 1: LA had trust as Ston as Prime Minister was the
Speaker 1: shortest in UK history. Florida Governor Rondo Scantists declined to
Speaker 1: say whether he'll run for president, as Democratic challenger Charlie
Speaker 1: Christ accused him of being too distracted by a bid
Speaker 1: for the White Allison four. And as for immigrants, Chris
Speaker 1: accused of Santists of misusing public money to fly asylum
Speaker 1: seekers from Texas to Martha's Vineyard earlier this year. You
Speaker 1: want to pull political stunts like you did with the
Speaker 1: taxpayers dollars of the people of Florida. That's not what
Speaker 1: it's for. That's not what you should have done. It
Speaker 1: isn't funny, it's not right, and you were in humane
Speaker 1: and how you treated these people. In Florida's first and
Speaker 1: only re election debate, the Santists said Chris's support for
Speaker 1: President Joe Biden of the time meant that he should
Speaker 1: share are the blame, but the worst inflation in forty
Speaker 1: years in the US by are fuel and natural gas
Speaker 1: prices up because of the Biden christ energy policies. They're
Speaker 1: waging war on American energy. They are not producing what
Speaker 1: we need to do, their begging Maduro and Opec for
Speaker 1: more oil. The debate was aired on WPEC. It is
Speaker 1: debate Night in New York between Democratic Governor Kathy Hokele
Speaker 1: and a Republican challenger, Lezelden. The two are expected to
Speaker 1: debate such topics as crime and the states bail reform laws.
Speaker 1: A man is in custody in New York City for
Speaker 1: last week's violent and unprovoked attack on a subway writer.
Speaker 1: The attack prompted the NYPD to step up its presence
Speaker 1: at subway stations. The US is making more charges that
Speaker 1: China's espionage into US business is growing Bloomberg's Boxer as
Speaker 1: a story. The d O j unsealed two more charges
Speaker 1: claiming Chinese intelligence officers tried to obstruct the criminal investigation
Speaker 1: of the Huawei Technologies, and FBI Director Christopher Ray says,
Speaker 1: that is basically the tip of the iceberg, and frankly,
Speaker 1: in thousands of others, we've found the Chinese government threatening
Speaker 1: established democratic norms and the rule of law as they
Speaker 1: work to undermine US economic security and fundamental human rights.
Speaker 1: Ray says, so far charges against thirteen working for China's
Speaker 1: intelligence service in San Francisco. I'm at Baxter Bloomberg Gay Break. Today,
Speaker 1: a Russian court started hearing American basketball star Britney Grinder's
Speaker 1: appeal against their nine year prison sentence for a drug possession.
Speaker 1: Grinder and eight time All Star center for the w
Speaker 1: NBA's Phoenix Mercury and a two time Olympic gold medalist,
Speaker 1: was arrested in February and was convicted in August after
Speaker 1: police said they found vape canisters containing cannabis soil in
Speaker 1: her luggage at Moscow's airport. In the NBA. The next one,
Speaker 1: the Nets and Celtics lost in hockey. The Capitals beat
Speaker 1: the Devil six three Monday Night football, the Patriots lost
Speaker 1: to the Chicago Bears. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Take, powered by
Speaker 1: more than twenties seven hundred journalists and analysts more than
Speaker 1: twenty countries. Michael Barr and this is Bloomberg nath Okay, Michael,
Speaker 1: thank you. It is now six thirty seven on Wall Street.
Speaker 1: Let's take a look at stock some of the names
Speaker 1: moving in the pre market while we await uh new
Speaker 1: Prime Minister of the UK, Rieshi Suonak. We can see
Speaker 1: the podium set up outside number ten Downing Street. He's
Speaker 1: due to make his first remarks as the latest Prime
Speaker 1: Minister of the UK in just a few minutes. But
Speaker 1: ahead of that, we're joined now by Bloomberg Radio and
Speaker 1: TV Markets correspondent Credy Gupta on another very busy warning
Speaker 1: morning for general earnings. Creat Yeah, well, speaking of general,
Speaker 1: we'll start with General Motors here. GM is your taker.
Speaker 1: They just came out with some earnings. Now, the shares
Speaker 1: did pop about three percent pre market. Looks like they
Speaker 1: paired some of that game down to about eight tenths
Speaker 1: of one percent, but still positive post earning story. Now
Speaker 1: this is significant. They are beating on the top line,
Speaker 1: but a narrow, narrow by narrow margin. I should say
Speaker 1: those share is um U S E P S. I
Speaker 1: just say up two dollars and twenty five cents. I
Speaker 1: don't know what's going on this morning. The estimate there
Speaker 1: is a dollar and eighty nine cents. Uh. What's interesting
Speaker 1: to me that was they also said that they cleared
Speaker 1: out about seventy five of their second quarter inventory. They're
Speaker 1: also talking about ramping up some of that EV production
Speaker 1: as soon as November seventeenth. We know that has been
Speaker 1: a major motive for GM and some of the other
Speaker 1: car makers to get on the e V production far
Speaker 1: more quickly so that they are not um basically squeeze
Speaker 1: out of the market completely. And we also know that
Speaker 1: some of the supply chain issues have been making that
Speaker 1: very very challenging. Nevertheless, at this moment, looks like General
Speaker 1: Motors their net sales and revenue coming in just about
Speaker 1: in line with estimates. I wouldn't call it a major beat,
Speaker 1: but the EPs is really where the stock is shining
Speaker 1: just a little bit, Nathan. So General Motors GM up
Speaker 1: about one point three percent. Okay, so that's one general company.
Speaker 1: Let's talk about the other one, General Electric. General Electric.
Speaker 1: The opposite story for General Electric her tees your taker
Speaker 1: down three point three percent in the pre market. Now,
Speaker 1: this is important because they had a profit miss, but
Speaker 1: a revenue and free cash flow beat. So what the
Speaker 1: issue is, once again, operating margin. You aren't seeing that
Speaker 1: kind of turnover that you are perhaps seeing in General Motors. Nevertheless,
Speaker 1: that's what's weighing on the shares this morning, So General
Speaker 1: Electric ge down three point three percent. But Nathan is
Speaker 1: not just those companies you have to keep an eye on.
Speaker 1: Remember yesterday when we were talking about China, those massive
Speaker 1: moves lower for those A d R s, Well, today
Speaker 1: a little bit of a turnaround story. Um Ali Baba
Speaker 1: is our poster child for that b A b A
Speaker 1: is the taker up one and a half percent in
Speaker 1: the pre market. You're also looking at the likes of
Speaker 1: j D for example, which is also up in the
Speaker 1: pre market institute of two point eight percent. But put
Speaker 1: this into context. Remember yesterday we had moves of somewhere
Speaker 1: between twelve to seventy in some of these A d R.
Speaker 1: So a lot of this is really just a technical
Speaker 1: bounce as opposed to a fundamental shift in the narrative.
Speaker 1: And I think that's an important to takeaway. Yeah, it's
Speaker 1: certainly going to be a region to watch as we
Speaker 1: try to sort out what exactly the changes that are
Speaker 1: coming with Chinese President shi Jin Pain getting that third
Speaker 1: term and consolidating power there. But let's let's turn back
Speaker 1: to earnings, because we've got a lot to get through
Speaker 1: in terms of what's been reported what's going to be reported? Well, absolutely,
Speaker 1: let's start off with another company, which I think maybe
Speaker 1: you might appreciate. You a grill man. Nathan can be
Speaker 1: can't be in the right weather fair enough. I can't
Speaker 1: cook to save my life at a fifty percent burn
Speaker 1: rate on an omelet. But Weber is a company A
Speaker 1: lot of people are watching on this, of course, the
Speaker 1: maker of grills. Um. I was told there's a green
Speaker 1: age certainly, you know, working alongside Jeremy Hunt potentially his chancellor.
Speaker 1: What's the difficulty for rieshie soon act to bring his
Speaker 1: party together given that you know he's been through a
Speaker 1: leadership contest before and has been rejected at least once before. Well,
Speaker 1: that's the thing, and he is untested in the in
Speaker 1: the true public space, because like this Trust, he has
Speaker 1: come to power without any sort of broader public mandate,
Speaker 1: I mean least Trust at least had the endorsement of
Speaker 1: the of the Tory Party membership. Seen that doesn't even
Speaker 1: have that. So the question is what on what basis
Speaker 1: can he govern and say that he's representing the British
Speaker 1: people um. And that could be a challenge for him
Speaker 1: because there is a question of easy really acting with
Speaker 1: a mandate. Of course, the Tories can't afford to go
Speaker 1: to an election anytime soon because they're dragging very badly
Speaker 1: in the polls, and the idea would simply be to
Speaker 1: get on until the next election is due in a
Speaker 1: couple of years and sort of stem the bleeding in
Speaker 1: the meantime. So he's got that challenge. But also given
Speaker 1: the extent of the divisions we've seen in public display
Speaker 1: and the Tory Party and its basically coalisions within one
Speaker 1: party and factions within one party, it's going to be
Speaker 1: a real challenge to keep a lid on that. Um.
Speaker 1: He might want to look, of course through the experience
Speaker 1: of Australia in that regard, because Australia cycled through a
Speaker 1: lot of leaders in the two thousand's and that didn't
Speaker 1: really end very well. So perhaps there'll be a motivation
Speaker 1: to really kind of try and cut it. Here at
Speaker 1: this point, and we're watching the motorcade live on Blimber
Speaker 1: Television as Richie Sunac makes his way to Number ten
Speaker 1: Downing Street. Following that meeting with King Charles the Third
Speaker 1: formally asked to form uh just the latest government in
Speaker 1: the UK. So with that motorcade making its way to
Speaker 1: number ten. We should be getting those comments from Prime
Speaker 1: Minister Sunac h in just the next couple of minutes.
Speaker 1: Here in the meantime, Rosalin mathieson Bloomberg News, Senior executive
Speaker 1: editor for International Government. What's the challenge for Sunac just
Speaker 1: to form a government. I mean, we've had a couple
Speaker 1: of former Prime Minister Lease Trustes, Cabinet ministers have to
Speaker 1: resign with various scandals. Uh, we had former Prime Minister
Speaker 1: Boris Johnson very briefly put himself up for leadership before
Speaker 1: backing off a couple of days later. But I mean
Speaker 1: there's a lot of fractiousness just within Conservative members themselves.
Speaker 1: Whether uh Prime Minister Sunac might have a talent pool
Speaker 1: to to go to draw on to form a government, well,
Speaker 1: that's right. And equally he needs to sort of bring
Speaker 1: a mixture to cabinet potentially of not just those who
Speaker 1: supported him in his leadership efforts um both with Liz
Speaker 1: trust and now, but those who perhaps worked against him.
Speaker 1: Because if you're truly trying to bring unity back to
Speaker 1: the party, then that has to include in the tent
Speaker 1: those who perhaps have had posed him or who stood
Speaker 1: against him even and so it will be interesting to
Speaker 1: see how he manages that mix because he does need
Speaker 1: to have allies and also potentially enemies working with him,
Speaker 1: as you say, to have that talent pool, and also
Speaker 1: to stop them potentially working against him. So that's going
Speaker 1: to be the interesting thing to see in the lineup.
Speaker 1: M And it looks like Richie sinak Is is pulling
Speaker 1: up now, so we may hear from him imminently on
Speaker 1: what that lineup is going to look like now while
Speaker 1: we wait for those comments rise in the few seconds
Speaker 1: perhaps that we have left here. What are some of
Speaker 1: the main points are going to be listening for from
Speaker 1: a prime minister soon? Acts? Comments? What are some of
Speaker 1: the unanswered questions that still need to be answered? Up,
Speaker 1: we're taking you now to prime ministers soon. Acc he's
Speaker 1: just begun his remarks now from number ten Downing Street.
Speaker 1: Let's bring you over to number ten and Prime Minister
Speaker 1: Rishi Sunac and accepted his Majesty the King's invitation to
Speaker 1: form a government in his name. It is only right
Speaker 1: to explain why I'm standing here as your new Prime
Speaker 1: minister right now. Our country is facing a profound economic crisis.
Speaker 1: The aftermath of COVID still lingers. Putin's war in Ukraine
Speaker 1: has destabilized energy markets and supply chains the world over.
Speaker 1: I want to pay tribute to my predecessor, Liz Trust.
Speaker 1: She was not wrong to want to improve growth in
Speaker 1: this country. It is a noble aim, yeah, and I
Speaker 1: admired her restlessness to create change. But some mistakes were made,
Speaker 1: not born of ill will or bad intentions, quite the
Speaker 1: opposite in fact, but mistakes nonetheless. And I have been
Speaker 1: elected as leader of my party and your Prime Minister
Speaker 1: in part to fix them, and that work begins immediately.
Speaker 1: I will place economic stability and confidence at the heart
Speaker 1: of this government's agenda. This will mean difficult decisions to come,
Speaker 1: but you saw me during COVID doing everything I could
Speaker 1: to protect people and businesses with schemes like furlough. There
Speaker 1: are always limits, more so now than ever that I
Speaker 1: promise you this. I will bring that same compassion to
Speaker 1: the challenges we face today. The government I lead will
Speaker 1: not leave the next generation your children and grandchildren were
Speaker 1: they debt to settle that we were too weak to
Speaker 1: pay ourselves. I will unite our country not with words,
Speaker 1: but with action. I will work day in and day
Speaker 1: out to deliver for you. This government will have integrity, professionalism,
Speaker 1: an accountability at every level. Trust is earned, and I
Speaker 1: will earn yours. I will always be grateful to Boris
Speaker 1: Johnson for his incredible achievements as Prime Minister, and I
Speaker 1: treasure his warmth and generosity of spirit. And I know
Speaker 1: he would agree that the mandate my party earned in
Speaker 1: is not the sole property of any one individual. It
Speaker 1: is a mandate that belonged to and unites all of us.
Speaker 1: And the heart of that mandate is our Manifesto. I
Speaker 1: will deliver on its promise a stronger NHS, better schools,
Speaker 1: safer streets, control of our borders, protecting our environment, supporting
Speaker 1: our armed forces, leveling up and building an economy that
Speaker 1: embraces the opportunities of Brexit, where businesses invest, innovate and
Speaker 1: create jobs. I understand how difficult this moment is. After
Speaker 1: the billions of pounds it cost us to combat COVID,
Speaker 1: after all the dislocation that caused in the midst of
Speaker 1: a terrible war that must be seen successfully to its conclusions.
Speaker 1: I fully appreciate how hard things are, and I understand
Speaker 1: two that I have work to do to restore trust.
Speaker 1: After all that has happened, all I can say is
Speaker 1: that I am not daunted. I know the high office
Speaker 1: I have accepted, and I hope to live up to
Speaker 1: its demands. But when the opportunity to serve comes along,
Speaker 1: you cannot question the moment, only your willingness. So I
Speaker 1: stand here before you, ready to lead our country into
Speaker 1: the future, to put your needs above politics, to reach
Speaker 1: out and build a government that represents the very best
Speaker 1: traditions of my party. Together we can achieve incredible things.
Speaker 1: We will create a future worthy of the sacrifices so
Speaker 1: many have made. And Phil tomorrow and every day thereafter
Speaker 1: with hope that Keen Richard soon actually British Prime Minister.
Speaker 1: There the message pretty simple, difficult decisions to come for
Speaker 1: the UK economy. Mistakes have been made. I'm here to
Speaker 1: fix them. From New York City for our audience worldwide
Speaker 1: on TV and radio. This is Bloomberg Surveymance with Tom
Speaker 1: Keane and Lisa Rabbad, Sam Jonathan Pharaoh t K pretty
Speaker 1: blunted to the point their tough decisions to come carefully worded,
Speaker 1: I thought, you know, moving from the past to the
Speaker 1: very recent present. Twitter lit up as some of these
Speaker 1: phrases were mentioned, but I do think John, for many people,
Speaker 1: this is the first time they've heard the Prime minister
Speaker 1: speak working to restore trust la soa quote after all
Speaker 1: that has happened, trying to ride on some of the
Speaker 1: good will that he built over the COVID era and
Speaker 1: how much they did extend some of the aid two
Speaker 1: individuals and including the furlough program. How far does that
Speaker 1: get this administration at a time of potential austerity, in
Speaker 1: the face of higher heating bills and just all in
Speaker 1: higher costs. Didn't use the word AUSTERI say, but it's
Speaker 1: there in the message, isn't it. We will not leave
Speaker 1: it to the next generation with debt to settle. Ultimately, Lisa,
Speaker 1: they're going to go hard and this is the difficult thing.
Speaker 1: How do you affect an economy in an optimism at
Speaker 1: a time when that's going to mean some serious declines
Speaker 1: in the economic output of this nation. Some people talking
Speaker 1: about this is the world's sixth biggest economy for now,
Speaker 1: we have heard that from economists, So how do they
Speaker 1: do you project a feeling of strength into the future.
Speaker 1: Lizzie Burden outside number ten down the street, let's head
Speaker 1: over to Lizzie. Now, Lizzie, you followed that addressed by
Speaker 1: the British Prime Minister. Went on for several minutes or so,
Speaker 1: talk to us about the reaction in the UK so far. Well,
Speaker 1: the reaction behind the black door was Row supplause. Uh
Speaker 1: it really Richard Sudak was trying to push hard on
Speaker 1: the reset button. There he did paid tribute to Boris
Speaker 1: Johnson and Liz