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Speaker 1: Live from the Bloomberg Interactive Berger Studios. This is Bloomberg

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Speaker 1: Daybreak for Monday, October three, two. Coming up the shower

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Speaker 1: and about face, The UK drops a plan to cut

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Speaker 1: taxas for the highest earners. We are live in Europe

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Speaker 1: with the latest. The fourth quarter begins swallowing three straight

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Speaker 1: quarters of luves is for US stocks, Credit Sweet shares

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Speaker 1: hit a record low, and Tesla shares drop after missing

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Speaker 1: third quarter delivery estimates. Rescue Cruise in Florida continue to

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Speaker 1: search for people who decided to grind out hurricane and

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Speaker 1: plus Brazil's presidential elections headed for a runoff vote on

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Speaker 1: Michael blarm More, I'm John stash Our. In sports, the

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Speaker 1: Mets appear headed for a second place finished after getting

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Speaker 1: swept in at lant out of the Yankees lost wins

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Speaker 1: for the Jets, and John, that's all's training head on

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Speaker 1: Bloomberg Daybreak on Bloomberg, Eleving Free on New York, Bloomberg one, Washington,

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Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty,

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Speaker 1: San Francisco, Sirius x M one nineteen and around the

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Speaker 1: world Old on Bloomberg Radio dot Com and via the

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Speaker 1: Bloomberg Business. Good morning. I'm Nathan Hagar and I'm Karen

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Speaker 1: Moscow and US DOT Index futures are mixed this morning.

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Speaker 1: We are coming up to five o one on Wall

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Speaker 1: Street and we check the markets every fifteen minutes throughout

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Speaker 1: the trading day on Bloomberg. S and P futures are

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Speaker 1: down four points now, futures up forty six and AS

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Speaker 1: day futures down fifty eight. Ten year treasury up eleven

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Speaker 1: thirty seconds. You have three point seven eight percent and

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Speaker 1: they yield on the two year four point one nine percent. Nathan, Karen.

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Speaker 1: We begin in the UK, where there has been an

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Speaker 1: about face from the government. Prime Minister Liz Trust is

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Speaker 1: dropping her controversial plan to cut taxes for the highest earners.

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Speaker 1: Let's go to Birmingham, England and get the latest with

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Speaker 1: Bloomberg Daybreak. You're a banker, Caroline he Good morning, Caroline,

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Speaker 1: Good morning, Nathan and Karen. The Chancellor Quasi Quality has

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Speaker 1: said that he has listened and is reversing the plan

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Speaker 1: to scrap the top rate of tax in the UK

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Speaker 1: announced this part of a mini budget ten days ago,

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Speaker 1: which prompted a market route the U turn. Despite the

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Speaker 1: denial by the Prime Minister up until yesterday was driven

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Speaker 1: by Toy MPs unhappy with the policy as the Conservatives

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Speaker 1: plunged in the polls. Sterling and UK guilt have reacted

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Speaker 1: positively to the reversal and money markets are paired Bank

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Speaker 1: of England rate hike bets, but it is a major

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Speaker 1: embarrassment for Trust and Quarting. Less than a month into office.

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Speaker 1: The mood from MPs, including from Mike Wood, is still positive.

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Speaker 1: Quiet Turning told media here in Birmingham at the party's

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Speaker 1: annual conference that he's not considering designing. Instead he's focused

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Speaker 1: on delivering growth. He gives his main conference speech at

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Speaker 1: four pm UK time today in Birmingham. I'm Caroline Hedger

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Speaker 1: Blue Bag day, Bake Caroline, thank you, and the pounder

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Speaker 1: has been strengthening. Oh their news checking Sterling right now

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Speaker 1: at one point one to oh four against the dollar

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Speaker 1: elsewhere and markets today cakes. After start of the fourth quarter,

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Speaker 1: us actually coming up there the ridge straight quarter of

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Speaker 1: losses for the first time since two thousand nine for

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Speaker 1: the NASDAC one hundred. It's the longest of losing streak

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Speaker 1: in twenty years. David Bianco, as Chief Investment Officer at

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Speaker 1: d w S Group. This is a bear market, So

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Speaker 1: I think a key question is is this the beginning

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Speaker 1: of a high inflationary period where we're near the end

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Speaker 1: of a high inflationary period. If you think we're near

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Speaker 1: the end of a high inflationary period, the worst is

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Speaker 1: largely behind and the market shouldn't go too much further down.

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Speaker 1: But that's the key question. D w S Chief investment

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Speaker 1: Officer David Bianco made the comments on Bloomberg's Wall Street

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Speaker 1: Week Catch the program every weekend on Bloomberg Radio and television.

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Speaker 1: We Karen, one of Wall Street's biggest bears is staying bearish.

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Speaker 1: Morgan Stanley chief US equity strategist Mike Wilson says a

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Speaker 1: FED pivot is becoming likely as money supply falls, but

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Speaker 1: he says that move won't allay concerns about earnings. Wilson

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Speaker 1: sees an eventual low for the SMP five hundred coming

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Speaker 1: later this year early next at the three thousand to

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Speaker 1: thirty four hundred point level. Well Goldman Sachs is also

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Speaker 1: staying bearish, and athan with a call that more stock

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Speaker 1: selling will take place next year. Goldman strategists say households

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Speaker 1: and foreigners could each sell Us stock valued at a

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Speaker 1: hundred billion dollars. In corporate news this morning, Karen, we're

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Speaker 1: watching shares of Credit Sweee hit a record low. Right now,

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Speaker 1: They're down nearly eight and a half percent. A memo

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Speaker 1: sent by CEO ol Rick Kerner's raising concerns over the

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Speaker 1: health of the Swiss bank. We get more from Bloomberg's

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Speaker 1: Charlie Wells in London coroner basically said the banks at

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Speaker 1: a critical moment. He reiterated, you know the importance of

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Speaker 1: not confusing share price, which we've been hearing a lot

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Speaker 1: about this morning, with performance and capital strength. And the

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Speaker 1: reason why this generated so much attention was because it

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Speaker 1: was the second straight memo that the CEO had to

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Speaker 1: send um on a Friday in two weeks, and it also,

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Speaker 1: interestingly over the weekend, generated a lot of discussion on

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Speaker 1: online boards like Reddit and Twitter. Bloomberg's Charlie Wells says

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Speaker 1: Credit Sweez is currently finalizing turnaround plans. Those will likely

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Speaker 1: include sweeping changes to its investment bank and thousands of

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Speaker 1: jobs over the coming years. Well Nathan shares a Tesla

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Speaker 1: are down four points seven percent in early trading. The

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Speaker 1: company delivered a record number of vehicles in the last quarter,

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Speaker 1: but the results still missed estimates and we get more

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Speaker 1: from Bloomberg's Denis Fella Greeny Tesla delivering more than three

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Speaker 1: three thousand vehicles, about four percent fewer than expected, possibly

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Speaker 1: on supply chain issues. The expenses to get customers actual

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Speaker 1: cars in their hands have been astronomical. Danna I've s,

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Speaker 1: managing director at web BUSHSLA, has started to balance that

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Speaker 1: and BASICUI be fine with ultimate delivers that could push

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Speaker 1: quarter quarters. I've says that means watch this quarter very closely.

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Speaker 1: Elon Musk tweeting he hopes to smooth out end of

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Speaker 1: quarter Russia's for customers sakes. Denise Spella, Greeny Bloomberg day break, Okay, Dennise,

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Speaker 1: thank you. Oil is on the rise this morning the

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Speaker 1: air indications OPEC could slash production by more than a

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Speaker 1: million barrels a day to revive plunging prices. The group

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Speaker 1: meets this Wednesday in Vienna. Checking rice is now Nimex

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Speaker 1: s crwds hired by four and a half percent of

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Speaker 1: three dollar sixty cents at eighty three oh seven of

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Speaker 1: barrel Brent is up four point three percent at eighty

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Speaker 1: eight dollars seventy seven cents. Well, Nathan. The big economic

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Speaker 1: event this week comes on Friday, when the US Labor

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Speaker 1: Department issues as monthly payrolls are poor, job growth and

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Speaker 1: likely continued in September even as the overall economic outlook dimmed.

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Speaker 1: We get more from Bloomberg's mini del judas the Federal

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Speaker 1: Reserve is lifting interest rates to pain inflation by applying

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Speaker 1: the breaks the economic growth. Even so, US jobs claims

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Speaker 1: have been running near historic glows, and economist are forecasting

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Speaker 1: employers hired about a quarter million workers in September. We'll

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Speaker 1: get the data Friday. Looking ahead, the president of the

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Speaker 1: Chicago fet Charles Evans this will take six months for

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Speaker 1: the impact of higher interest rates to be felt in

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Speaker 1: the labor market. Also on this week's data calendar figures

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Speaker 1: on job openings which have been running at his store

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Speaker 1: Kis and he dealt Bloomberg debery. Thanks Vinny. Finally, we

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Speaker 1: take stock of the damage from Hurricane Ian. It destroyed

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Speaker 1: a outlets number of homes and businesses in Florida, but

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Speaker 1: skirted a key US fertilizer production area. That means the

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Speaker 1: broader US economy was spared. The worst case scenario. Still

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Speaker 1: Ian is set to be one of the top ten

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Speaker 1: costliest storms in the US, with estimates as high as

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Speaker 1: one D twenty billion dollars. You're listening to Bloomberg daybreak

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Speaker 1: in South five oh seven on Wall Street, rain fifty

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Speaker 1: degrees in Central Park, New Jersey. Transit services suspended on

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Speaker 1: the Note Jersey coastline. It's because of overhead wire problems.

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Speaker 1: Will get the details in traffic shortly. First, Michael bars

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Speaker 1: here with what else is going on in New York

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Speaker 1: and around the world. Good morning, Michael, Good morning Nathan.

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Speaker 1: A wig for a murdered f d n Y E

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Speaker 1: M S Lieutenant will take place today and tomorrow. Family,

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Speaker 1: friends and co workers have been gathering to remember Alison

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Speaker 1: Russo Elling. She was stabbed to death in an unprovoked

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Speaker 1: attack in the story of Queen's Last Week. The wake

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Speaker 1: for Russo Elling, who was sixty one, will take place

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Speaker 1: in Commack. Police arrested thirty four year old Peter this Philosophilis,

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Speaker 1: who has a history of mental illness. Search and rescue

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Speaker 1: efforts are still underway in parts of Florida in the

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Speaker 1: wake of Hurricane in Over the weekend, responders took to

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Speaker 1: the air, grabbing people from rooftops and evacuating Barrier Island

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Speaker 1: residents by boat after Ian wiped away roads leading to

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Speaker 1: the mainland. Florida Governor Ron De Santis said teams are

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Speaker 1: conducting sweeps and areas hit hardest by the storm. There's

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Speaker 1: more urban search and rescue teams in Florida now than

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Speaker 1: in any one place in American history since September eleven. Meanwhile,

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Speaker 1: President Biden will visit Puerto Rico, hit hard by Hurricane Fiona.

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Speaker 1: Brazilian President Jayre Bolsenaaro fought his way to a runoff

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Speaker 1: election against his leftist challenger, former President Luis and Natio

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Speaker 1: Lula da Silva. Lula got forty eight percent while Bolsinoro

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Speaker 1: received forty three percent. However, neither one got the simple

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Speaker 1: majority needed for victory. These college students saying that they

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Speaker 1: voted for Lula with the Tulula to Brazil the woods

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Speaker 1: in the future, bus is opposed to democracy. The candidates

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Speaker 1: will face each other in the high stakes October thirty

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Speaker 1: presidential runoff. It's a big defeat from Moscow. In Ukraine.

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Speaker 1: Last week, Russian President Vladimir Putin used a sham referendum

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Speaker 1: to declare four areas of Ukraine as part of Russia.

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Speaker 1: But one of those regions, Lemon, almost immediately fell to

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Speaker 1: Ukrainian forces. I meanwhile, Vladimir Putin is doomed to lose

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Speaker 1: the war in Ukraine. That's from former CIA director David Petrayas.

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Speaker 1: The retired four star general says, Russia's army has quote shambolock.

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Speaker 1: He announced the annexation, and he's already lost a really

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Speaker 1: critical element in that, a critical city that would have

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Speaker 1: been a very key supply hub had they been able

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Speaker 1: to go farther. And that's just going to continue. He's

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Speaker 1: going to continue to lose on the battlefield. Petrayas spoke

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Speaker 1: on ABC's This Week, which can be heard Sundays on Bloomberg.

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Speaker 1: Justice Catangi Brown Jackson will make her debut as the

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Speaker 1: Supreme Court's new term kicks off today. Global News twenty

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Speaker 1: four hours a day on airand home. Bloomberg Quick Take

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Speaker 1: powered by more journalists, analysts more than a hundred twenty countries.

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Speaker 1: Michael bar this is Bloomberg, Navid. Thanks Michael five ten

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Speaker 1: on Wall Street time for the Bloomberg Sports I'll tell

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Speaker 1: you what John Stenshown, Thanks, Nathan Mets has been a

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Speaker 1: first place team virtually the entire season, but after a

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Speaker 1: nightmare weekend in Atlanta, they're almost certainly going to finish second.

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Speaker 1: Praise one again Dansby Swanson home for the third straight game,

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Speaker 1: x met Travis Darnel at two one single. Atlanta won

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Speaker 1: five three to sweep the series. The Braves lead by

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Speaker 1: two and own the tiebreaker. A win for them tonight

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Speaker 1: clinches the division. The Mets thought they'd be the NLS

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Speaker 1: two seed, instead looks like the four and headed for

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Speaker 1: a best of three wild cards series this weekend with

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Speaker 1: San Diego or Philadelphia for the right to then face

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Speaker 1: the Dodgers. All of the games in the wild Card

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Speaker 1: series would be at City Field of Stadium. Yankees had

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Speaker 1: just four hits lost to Baltimore three to one. Aaron

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Speaker 1: Judge struck out three times. He'll try to surpass Roger

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Speaker 1: Marris in Texas. Jets finished their four game tour of

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Speaker 1: the a f C North two losses, but also two

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Speaker 1: thrillion wins. They had that one in Cleveland and in Pittsburgh.

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Speaker 1: They trailed midway through the fourth quarter by ten points.

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Speaker 1: Zach Wilson a touchdown past to Corey Davis and then

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Speaker 1: after a Jets interception of Steelers rookie QB Kenny Pig

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Speaker 1: and Breece Hall scored with sixteen seconds left. The Jets

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Speaker 1: one twenty four to twenty. Giants and Bears and met

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Speaker 1: live only two touchdowns scored all day. Both played the

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Speaker 1: same Guykake Jones just gonna poot like and rolling left.

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Speaker 1: He's gonna want it again. Kills to the five. Killants

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Speaker 1: gives in touchdown Giants Daniel Jones in a twelve yard

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Speaker 1: run mother They get foot around the left side, his

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Speaker 1: second rushing touchdown of the game, and the Giants have

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Speaker 1: wind their lead to thirty six fan The College Giants

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Speaker 1: went on to win twenty to twelve, though Jones left

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Speaker 1: with an ankle injuring his backup Tyrod Taylor left with

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Speaker 1: a concussion. Giants first three and one start since two

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Speaker 1: thousand eleven. John stash Award Boomberg Sports Nathan Thanks john

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Speaker 1: SMP futures down nine points, right now down, futures up

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Speaker 1: two points. Snass that future is lower by seventy eight points.

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Speaker 1: This is Bloomberg. Bloomberg eleven three oh weather rain today

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Speaker 1: with a high near sixty degrees. Occasional rain tomorrow with

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Speaker 1: for afternoon highs right now showers and fifty degrees in

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Speaker 1: Central Park markets. Headlines and breaking news twenty four hours

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Speaker 1: a day at Bloomberg dot com, the Bloomberg Business Out

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Speaker 1: and at Bloomberg Quick Tape. This is a Bloomberg Business

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Speaker 1: Flash and I'm Karen Moscow. This updates brought to you

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Speaker 1: by se I Imagine your ousset management firms operational infrastructure

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Speaker 1: as a competitive advantage. Let us see I show you

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Speaker 1: how at se i C dot com slash I m

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Speaker 1: S Global stocks are falling to a two year low,

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Speaker 1: while U S stock index futures struggle for direction a

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Speaker 1: bit amid concerned hawkish policies by global central banks, Well

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Speaker 1: sparker Is says in an earnings contraction, Pound rising as

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Speaker 1: the UK WHI drew a plan to abolish the top

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Speaker 1: income tax rate, and Credit Suite Group shares hitting record

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Speaker 1: lows as traders continue to speculate about its future. We

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Speaker 1: checked the markets every fifteen minutes throughout the trading day.

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Speaker 1: On Bloomberg, SNP futures down five points down futures higher

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Speaker 1: up thirty six and now as dat futures they're falling

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Speaker 1: down about sixties seven decks. In Germany's down one point

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Speaker 1: one percent. Ten year treasury of ten thirty seconds, you'll

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Speaker 1: three point seven eight percent yield on the two year

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Speaker 1: four point one nine percent. Nim X screwed oil is

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Speaker 1: up four percent of three dollars twenty one cents at

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Speaker 1: eighty two dollars seventy cents of barrel Comex gold is

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Speaker 1: down a tenth of a per cent or two dollars

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Speaker 1: ten cents at sixteen sixty nine nine ounce the euro

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Speaker 1: point nine seven nine five against the dollar, British pound

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Speaker 1: one point one two oh one and the N one

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Speaker 1: forty five point oh nine. And look at a bitcoin

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Speaker 1: down a third of u percent at nineteen thousand, one

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Speaker 1: hundred sixty dollars. That's a bloomberg business flash. Now here's

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Speaker 1: Michael Barr with more on what's going on around the world. Arpel.

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Speaker 1: Good morning, Good morning here, and President Joe Biden will

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Speaker 1: announce more than sixty million dollars in funding to strengthen

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Speaker 1: Porto Rico's resilience to flooding when he visits the island

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Speaker 1: to observe recovery efforts from the devastation left by Hurricane Fiona.

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Speaker 1: The President and First Lady will fly to Porto Rico today.

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Speaker 1: The Supreme Court begins a new term today. There will

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Speaker 1: be day one for Judge Catanji Brown Jackson. In the NFL,

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Speaker 1: the Giants and Jets one. The Patriots, Commanders and Ravens lost.

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Speaker 1: The forty Niners play the Rams. Tonight. In baseball, the

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Speaker 1: Yankees lost to the Orioles three one. The Mets lost

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Speaker 1: to the Braves five three. Atlanta swept the series and

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Speaker 1: knock the Mets out of the lead. In the NL East,

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Speaker 1: the Red Sox and Nationals lost the A's and Giants one.

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Speaker 1: Global News twenty four hours a day on air and

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Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred

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Speaker 1: journalist and analysts more than a hundred twenty countries. Michael Barr,

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Speaker 1: this is Bloomberg. Nathan Okay, Michael, thank you for coming

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Speaker 1: up to five twenty on Wall Street Live from the

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Speaker 1: Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. As we

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Speaker 1: get the fourth quarters started here, we are very pleased

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Speaker 1: to be joined this morning by Lori Calvacina, head of

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Speaker 1: US Equity Strategy at RBC Capital Markets. Laurie, it's great

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Speaker 1: to speak with you as always, And stock investors are

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Speaker 1: looking for a winning quarter sometime this year, haven't gotten

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Speaker 1: one yet. I think they'll get one in the fourth

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Speaker 1: It would be nice. Thanks for having me as always.

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Speaker 1: And look, I think that we're at a very sort

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Speaker 1: pivotal moment for stock. We've come down, we've tested, retested

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Speaker 1: the June love UM. It's interesting as I talked to

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Speaker 1: investors last week, I think there is some hope for

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Speaker 1: a fourth quarter bounce back. UM. And we are certainly

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Speaker 1: are starting to see that valuations are looking interesting again

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Speaker 1: in the market. UM. But I do think that we

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Speaker 1: should expect folattle conditions to endure for a bit longer.

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Speaker 1: Where specifically are you seeing interesting valuations, Well, we see

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Speaker 1: it in the broader market generally. If you look at

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Speaker 1: where we closed on Friday against our EPs number for

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Speaker 1: next year, we've actually gone down right back in line

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Speaker 1: with the long term average the word about sixteen point

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Speaker 1: nine times long term average about sixteen point eight. And

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Speaker 1: when you dig down deeper and look within the S

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Speaker 1: and P five hundreds and look specifically at the different sectors.

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Speaker 1: I would tell you areas like financials still looks very

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Speaker 1: compelling on our work, UM consumer to strectionaries looking interesting.

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Speaker 1: There are obviously fundamental challenges. Their energy stacks still look

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Speaker 1: very compelling materials. And then when we step back from

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Speaker 1: the sector, small caps are actually making a very strong

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Speaker 1: valuation case right now, so we've actually put an overweight

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Speaker 1: in place. There is there still concern that with FED

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Speaker 1: tightening and central bank tightening more broadly around the world,

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Speaker 1: that that could eat in two earnings. So it's interesting

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Speaker 1: if you look at the bottom up consensus for earnings,

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Speaker 1: the numbers are still I think around two two, And

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Speaker 1: if you're just sort of baking together what south side

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Speaker 1: analysts are anticipating in our number for next year is

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Speaker 1: actually at to twelve. This year, we're also below consensus

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Speaker 1: at to eighteen. I think the consensus still around to

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Speaker 1: So I think at this point it's really about the

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Speaker 1: economic damage that sparked by the Fed policies um that

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Speaker 1: the street is struggling to put in place. UM, we've

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Speaker 1: already kind of baked that into our model at this point,

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Speaker 1: and so we have earnings growth going nowhere for a

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Speaker 1: couple of years to eleven was last year's number, and

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Speaker 1: we think it's gonna end up being some of the

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Speaker 1: sixteen periods where laradis just chop around for a while,

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Speaker 1: it don't really make any progress. Both earnings do stick

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Speaker 1: to that forecast and we don't see much movement there.

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Speaker 1: If we do get a bounce in the fourth quarter,

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Speaker 1: is that just gonna be a short lived bouncer. Where's

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Speaker 1: the momentum? Do you think? We know? It's interesting. We

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Speaker 1: went back and we we put this note doubt over

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Speaker 1: the weekend. We went back and looked at sort of

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Speaker 1: prior periods of normalization coming out of the financial crisis,

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Speaker 1: coming out of the tech bubble, really kind of the

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Speaker 1: O two oh three UM and eleven periods, and you

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Speaker 1: did see some pretty vicious rallies and give backs. UM.

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Speaker 1: So you know, if we were to follow just the

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Speaker 1: two thousand two paths and actually there's been a seventy

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Speaker 1: two percent correlation between markets this year and markets back

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Speaker 1: in two thousand and two, UM, we would see sort

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Speaker 1: of a fierce work que rally and then we would

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Speaker 1: give a lot of it back in the first quarter.

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Speaker 1: Retest belows again, we'll see if it plays out that way.

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Speaker 1: But I would tell you one of the catalyst people

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Speaker 1: have been looking for is the mid term elections. We

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Speaker 1: do tend to see stocks bottom about a month before

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Speaker 1: that event, and we're coming up right on that time horizon. Now, interesting,

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Speaker 1: what kind of catalyst could this week's jobs report be?

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Speaker 1: What kind of catalyst could it be for the Fed? UM?

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Speaker 1: You know, it's interesting with jobs, I think that markets

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Speaker 1: are already pricing in a pretty big pickup in jobless

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Speaker 1: claims if we think about the Thursday release UM and

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Speaker 1: in terms of jobless claims, I'm not going to try

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Speaker 1: to predict what how the set is going to react

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Speaker 1: to anyone given report, but I will tell you that

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Speaker 1: when you think about markets themselves and how they may react,

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Speaker 1: we have historically seeing that small caps tend to outperform

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Speaker 1: large caps UM in the middle of recessions once the

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Speaker 1: unemployment rate starts to pick up. And that's just based

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Speaker 1: on the idea that a lot of pain in the

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Speaker 1: labor market is pre vaked into that part of the

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Speaker 1: market UM, and then when one sort of the deterioration

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Speaker 1: is seen, UM, we can get some relief in the

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Speaker 1: small cap stocks. So we'll be looking for a start

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Speaker 1: of the market reactions to whatever moves comes out on Friday.

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Speaker 1: Just about thirty seconds left here, Laurie, But are you

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Speaker 1: looking for a pivot from the FED to slower interest

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Speaker 1: rate hikes? If so, what would spark it? So? I

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Speaker 1: think that for any said pivot to come through, and

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Speaker 1: they seem determined to convince the market that there isn't

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Speaker 1: one coming um, I think you'd have to see some

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Speaker 1: clear deterioration or moderation in the inflation data, and I

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Speaker 1: think that's what everyone's waited for. We continue to hear

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Speaker 1: clients talk about that, and I would tell you if

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Speaker 1: I talked to investors, I don't think they've given us

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Speaker 1: hope on that, Fido either, So great to speak with you, Lori,

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Speaker 1: Thanks again for doing this. Lori Calvacina, head of US

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Speaker 1: equity strategy at RBC Capital Markets. Looking at the market

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Speaker 1: this morning, you sort of looking for direction here, with

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Speaker 1: Nasdaq futures leading declines after the disappointing results from Tesla

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Speaker 1: in terms of third quarter deliveries. NASDAC futures are down

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Speaker 1: a half percent right now, down fifty two points. S

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Speaker 1: ANDP future is a little changed and DAL futures are

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Speaker 1: higher by eighty two points. The tenure treasuries up eleven

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Speaker 1: thirty seconds, yield three point seven eight percent. You're listening

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Speaker 1: to Bloomberg Daybreak Bloomberg eleven three oh weather mostly cloudy

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Speaker 1: for the most part. Today we'll get up to your

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Speaker 1: sixty degrees occasional rain. Tomorrow breezy, pioneer sixty showers and Wednesday.

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Speaker 1: Right now, we're at fifty degrees in Central Park. Broadcasting

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Speaker 1: live from the Bloomberg Interactive Broker's studio in New York.

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Speaker 1: Bloomberg E living free to Washington, d C. Bloomberg to Boston,

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Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine

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Speaker 1: six to the country, Sirius XM Chado one ninet and

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Speaker 1: around the globe the Bloomberg Business and Bloomberg Radio dot Com.

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Speaker 1: This is Bloomberg Daybreak. It's five thirty on Wall Street.

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Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow. We

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Speaker 1: are just about four hours away from the open of

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Speaker 1: you West Trading. Let's get you up to date on

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Speaker 1: the news. You need to know what this shower. We

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Speaker 1: begin with an about face out of the UK Prime

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Speaker 1: Minister Liz Trust and her administration are dropping a controversial

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Speaker 1: tax cut. Chancellor Quasi Quartan had come under fire for

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Speaker 1: cutting taxes on the UK's highest earners. Bloomberg's Lizzie Burden

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Speaker 1: has details from the Tory party's conference in Birmingham. He

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Speaker 1: said that the rate cut was becoming a huge distraction

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Speaker 1: from a set of strong policies. Of course, the government

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Speaker 1: had also announced this massive energy bailout, so it was

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Speaker 1: desperately trying to cling back to the political credit for that.

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Speaker 1: He was asked what changed, He said, we listened to people,

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Speaker 1: We get it. He was asked as he considered resigning,

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Speaker 1: He said not at all. The Prime Minister had thrown

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Speaker 1: him under a bus yesterday, blamed him for this top

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Speaker 1: rate of tax cut. So the question now is how

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Speaker 1: much of the rest of the package can survive. Bloomberg's

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Speaker 1: Lizzie Burden says the move may cool the political backlash,

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Speaker 1: but they're still concerned for markets and the pound and

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Speaker 1: checking sterling now it's at one point one to oh

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Speaker 1: one against the dollar. Meantime, Karen today kicks off the

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Speaker 1: start of the fourth quarter for markets. US stocks are

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Speaker 1: coming off their third straight quarter of losses for the

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Speaker 1: first time since two thousand nine. LPL financials Quincy Crosby says,

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Speaker 1: there are still plenty of risks. We've seen the volatility

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Speaker 1: index climb the VIX because it's more uncertainty, uncertainty regarding

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Speaker 1: how does the set actually bring us to price stability,

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Speaker 1: which out as the proverbial breaking something. Also, you know,

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Speaker 1: we're going into third quarter earning season and the questions are,

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Speaker 1: what are those companies saying not only their bottom line

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Speaker 1: but their margins, but what's the guidance? Quincy Crosby with

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Speaker 1: LPL Financial things stocks may go lower from here until

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Speaker 1: they find a level that has discounted economic headwinds. But

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Speaker 1: when in all Street's biggest bears, Nathan is staying bearish.

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Speaker 1: Morgan Stanley chief US equity strategist Mike Wilson said of

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Speaker 1: FED pivot is becoming likely as money supply falls, but

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Speaker 1: still that move won't a lake concerns about earnings. He

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Speaker 1: sees a bottom for the SNP five as low three thousand.

430
00:23:01,000 --> 00:23:03,400
Speaker 1: In Banking News, Karen shares of credit suites are down

431
00:23:03,480 --> 00:23:06,159
Speaker 1: nearly seven and a half percent. The Swiss banks finalizing

432
00:23:06,200 --> 00:23:08,919
Speaker 1: plans that will likely see sweeping changes and could include

433
00:23:08,920 --> 00:23:11,919
Speaker 1: cutting thousands of jobs over a number of years. Oil

434
00:23:11,960 --> 00:23:14,679
Speaker 1: on the rise this morning, Nathan. There are indications at

435
00:23:14,720 --> 00:23:17,720
Speaker 1: OPEC Plus may slash production by more than a million

436
00:23:17,800 --> 00:23:20,640
Speaker 1: barrels a day to revive plunging prices. The group meets

437
00:23:20,680 --> 00:23:23,879
Speaker 1: Wednesday in Vienna and checking prices now. Nime X scrude

438
00:23:23,880 --> 00:23:26,560
Speaker 1: oil is up about four percent. It's at eighty two

439
00:23:26,600 --> 00:23:28,800
Speaker 1: dollars fifty nine cents of barrel, and Brent is at

440
00:23:28,840 --> 00:23:31,920
Speaker 1: eighty eight dollars thirty two cents. Straight ahead your latest

441
00:23:32,040 --> 00:23:35,280
Speaker 1: local headlines, plus to check of sports. This is Bloomberg.

442
00:23:38,440 --> 00:23:40,679
Speaker 1: Thanks Hearing five thirty three on Wall Street, forty nine

443
00:23:40,720 --> 00:23:43,639
Speaker 1: degrees in Central Park. Still dealing with a service suspension

444
00:23:43,680 --> 00:23:47,199
Speaker 1: on New Jersey Transits North Jersey Coastline. Details coming up

445
00:23:47,200 --> 00:23:49,720
Speaker 1: in traffic. First Michael Barr with what else is going

446
00:23:49,760 --> 00:23:52,000
Speaker 1: on in New York and around the world. Michael Nathan,

447
00:23:52,040 --> 00:23:54,440
Speaker 1: thank you, sir, Awake for a murdered f D n

448
00:23:54,680 --> 00:23:59,000
Speaker 1: Y E M S. Lieutenant will take place today and tomorrow. Family,

449
00:23:59,119 --> 00:24:01,760
Speaker 1: friends and co workers have been gathering to remember Alison

450
00:24:01,840 --> 00:24:05,040
Speaker 1: Russo Elling. She was stabbed to death in an unprovoked

451
00:24:05,080 --> 00:24:07,880
Speaker 1: attack and the story of Queen's last week. The wait

452
00:24:07,960 --> 00:24:10,320
Speaker 1: for Russo Elling, who is sixte will take place in

453
00:24:10,480 --> 00:24:15,280
Speaker 1: com Russo Ellen's funeral is Wednesday. In Brookville, police arrested

454
00:24:15,320 --> 00:24:18,359
Speaker 1: thirty four year old Peter Zissopolis, who has a history

455
00:24:18,800 --> 00:24:21,960
Speaker 1: of mental illness. More than a thousand search and rescue

456
00:24:22,000 --> 00:24:25,760
Speaker 1: workers are performing operations across Florida as some people remain

457
00:24:25,800 --> 00:24:29,280
Speaker 1: stranded by Hurricanean. A thousand National Guard members were sent

458
00:24:29,359 --> 00:24:32,439
Speaker 1: to Florida's Barrier Islands for more search and rescue efforts.

459
00:24:32,720 --> 00:24:35,720
Speaker 1: Florida Governor Randa Santis, you look at for Myers Beach

460
00:24:36,040 --> 00:24:39,280
Speaker 1: and you see homes obliterated. You know that was obliterated

461
00:24:39,320 --> 00:24:42,400
Speaker 1: because you had almost a Cat five storm touch landfall there,

462
00:24:42,680 --> 00:24:45,800
Speaker 1: Governor to Santa says Ian was a five hundred year event.

463
00:24:46,600 --> 00:24:49,480
Speaker 1: It's a big defeat from Moscow. In Ukraine, last week,

464
00:24:49,560 --> 00:24:52,560
Speaker 1: Russian leader of Vladimir Putin used a sham referendum to

465
00:24:52,640 --> 00:24:55,520
Speaker 1: declare four areas of Ukraine as part of Russia, but

466
00:24:55,720 --> 00:24:59,280
Speaker 1: one of those regions almost immediately fell to Ukrainian forces

467
00:24:59,400 --> 00:25:03,119
Speaker 1: over the weekend. The strategic city of Lamon in Ukraine's

468
00:25:03,200 --> 00:25:07,320
Speaker 1: northeast was taken back. Former CIA director David Petrea says

469
00:25:07,440 --> 00:25:11,040
Speaker 1: Russia's army is no match for Ukraine's and Putin at

470
00:25:11,160 --> 00:25:13,399
Speaker 1: some point is going to need to come to the

471
00:25:13,480 --> 00:25:18,120
Speaker 1: negotiating table to him the war. No amount of shambolic mobilization,

472
00:25:18,200 --> 00:25:20,280
Speaker 1: which is the only way to describe it, no amount

473
00:25:20,320 --> 00:25:24,640
Speaker 1: of annexation, no amount of even veiled nuclear threats can

474
00:25:24,680 --> 00:25:28,280
Speaker 1: actually get him out of this particular situation. The retired

475
00:25:28,320 --> 00:25:31,639
Speaker 1: four star general spoke on ABC's This Week, which can

476
00:25:31,680 --> 00:25:35,760
Speaker 1: be heard Sundays on Bloomberg. Brazilian President Johannira Bolsinaro fought

477
00:25:35,800 --> 00:25:39,000
Speaker 1: his way through a runoff election against Louis Gnatio Lula

478
00:25:39,119 --> 00:25:42,080
Speaker 1: da Silva. Both fell short of the first round win,

479
00:25:42,480 --> 00:25:46,040
Speaker 1: which means there will be a runoff on October. According

480
00:25:46,080 --> 00:25:50,560
Speaker 1: to Brazil's electoral court. Lula took to bull Cinaros forty

481
00:25:50,640 --> 00:25:53,640
Speaker 1: three Global News twenty four hours a day on airand

482
00:25:53,720 --> 00:25:56,600
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred

483
00:25:56,640 --> 00:25:59,359
Speaker 1: journalists and analysts more than a hundred twenty countries. Michael

484
00:25:59,400 --> 00:26:08,160
Speaker 1: Barr and this is Bloomberg, Nathan, Thanks Michael. On Wall Street,

485
00:26:08,200 --> 00:26:10,840
Speaker 1: Time for the Bloomberg Sports Update with John Stetshow all right, Nathan.

486
00:26:10,880 --> 00:26:12,880
Speaker 1: At one point this season, the Mets were in first

487
00:26:12,880 --> 00:26:15,159
Speaker 1: place by ten and a half games, but the Braves

488
00:26:15,320 --> 00:26:18,720
Speaker 1: Captain Winning kept getting closer. In Atlanta just configured the

489
00:26:18,760 --> 00:26:20,960
Speaker 1: three game sweep and it's the Braves who will almost

490
00:26:20,960 --> 00:26:23,480
Speaker 1: certainly win the NL East. Their magic number is one.

491
00:26:23,920 --> 00:26:26,400
Speaker 1: Met did not get good starting pitching. Jacob mc graham

492
00:26:26,480 --> 00:26:28,640
Speaker 1: gave up three runs Max Shen's or four and last

493
00:26:28,720 --> 00:26:31,640
Speaker 1: night Chris Bassett State two a three one lead after

494
00:26:31,720 --> 00:26:34,679
Speaker 1: Mad Homer's by Daniel vogel Back and Jack McNeil couldn't

495
00:26:34,680 --> 00:26:36,840
Speaker 1: finish the third inning the Braves one five to three.

496
00:26:36,880 --> 00:26:39,600
Speaker 1: It's going to make for a tougher postseason road that

497
00:26:39,640 --> 00:26:41,800
Speaker 1: would start with the best of three wild Cards series

498
00:26:41,880 --> 00:26:44,399
Speaker 1: this weekend at City Field. Yankees last regular season home

499
00:26:44,480 --> 00:26:47,080
Speaker 1: game three one lost to Baltimore. They close it out

500
00:26:47,119 --> 00:26:50,000
Speaker 1: in Texas four games for Aaron Judge to try and

501
00:26:50,080 --> 00:26:53,120
Speaker 1: hit home run number sixty two. Jetson Pittsburgh. First game

502
00:26:53,160 --> 00:26:55,159
Speaker 1: for Zack Wilson back from the knee injury, and he

503
00:26:55,240 --> 00:26:59,000
Speaker 1: was part of an early Jet score take the Jets

504
00:26:59,040 --> 00:27:02,359
Speaker 1: sweep picks on. It'll be a strong for Barrios to

505
00:27:02,520 --> 00:27:12,560
Speaker 1: Zack Wilson for the touchdown Lazzle Castle for the CHURIOSESPN

506
00:27:12,560 --> 00:27:15,200
Speaker 1: New York colleg Jets were up ten, then down ten.

507
00:27:15,359 --> 00:27:19,399
Speaker 1: They rallied scored with sixteen seconds left. Beat the Steelers twenty,

508
00:27:19,600 --> 00:27:22,879
Speaker 1: only their second win in Pittsburgh in team history. Giants

509
00:27:22,960 --> 00:27:25,439
Speaker 1: had their first three and one starts in two thousand eleven.

510
00:27:25,480 --> 00:27:27,680
Speaker 1: They won the Super Bowl that year, beat the Bears

511
00:27:27,760 --> 00:27:31,360
Speaker 1: at met Life twelve. Daniel Jones's two first half teen

512
00:27:31,600 --> 00:27:34,200
Speaker 1: runs we're the only touchdowns of the game. Giants played

513
00:27:34,240 --> 00:27:37,080
Speaker 1: this Sunday in London. We'll see who their QB will be.

514
00:27:37,240 --> 00:27:41,119
Speaker 1: Jones Purtas ankle yesterday and the backup Tyrod Taylor's suffered

515
00:27:41,119 --> 00:27:44,680
Speaker 1: at from kussion. John Stash Howard Bloomberg Sports Nap. Thanks John,

516
00:27:44,720 --> 00:27:46,680
Speaker 1: It's five thirty seven on Wall Street time for the

517
00:27:46,760 --> 00:27:50,720
Speaker 1: Tri State Business Report. Who's Bloomberg Scott Carr. Rent increases

518
00:27:50,760 --> 00:27:53,280
Speaker 1: are in effect now for the approximate two million living

519
00:27:53,320 --> 00:27:56,680
Speaker 1: in New York City's rent stabilized departments. Those who renew

520
00:27:56,720 --> 00:28:00,200
Speaker 1: their leases between now and September thirty next year will

521
00:28:00,200 --> 00:28:02,560
Speaker 1: be subject to increases of three and a quarter percent

522
00:28:02,680 --> 00:28:05,800
Speaker 1: for one year leases and five percent for two year leases.

523
00:28:06,040 --> 00:28:08,640
Speaker 1: The city's rent Guidelines Board to prove the increase back

524
00:28:08,680 --> 00:28:12,280
Speaker 1: in June. New Jersey's Economic Development Authority says it's Small

525
00:28:12,359 --> 00:28:16,119
Speaker 1: Business Improvement Grant program has awarded close to thirteen million

526
00:28:16,200 --> 00:28:19,520
Speaker 1: dollars to more than five hundred gardens state enterprises since

527
00:28:19,560 --> 00:28:22,320
Speaker 1: it launched in February. The funding comes from the state's

528
00:28:22,400 --> 00:28:25,639
Speaker 1: Main Street Recovery program, offering small businesses up to fifty

529
00:28:25,680 --> 00:28:30,720
Speaker 1: thou dollars for covering general operating costs. Despite rising rents, Hartford, Connecticut,

530
00:28:30,760 --> 00:28:33,080
Speaker 1: has been named one of the seven most affordable cities

531
00:28:33,160 --> 00:28:36,919
Speaker 1: for multi family investing by Crexy, an online commercial real

532
00:28:37,040 --> 00:28:40,480
Speaker 1: estate marketplace. They say Hartford saw ninety seven million dollars

533
00:28:40,560 --> 00:28:42,600
Speaker 1: in deals in just the first half of this year.

534
00:28:42,960 --> 00:28:46,080
Speaker 1: That's the Bloomberg Tri State Business Report. I'm Scott Carr.

535
00:28:46,200 --> 00:28:48,920
Speaker 1: Thanks Scott eight on Wall Street. Bloomberg Radio is on

536
00:28:49,000 --> 00:28:51,200
Speaker 1: the air from San Francisco to New York, London to

537
00:28:51,320 --> 00:28:53,440
Speaker 1: Hong Kong. Let's check in with our global news team

538
00:28:53,480 --> 00:28:55,120
Speaker 1: for some of the top stories heard on our three

539
00:28:55,200 --> 00:29:01,640
Speaker 1: hundred affiliate radio stations around the world. I'm Steve poliscon

540
00:29:01,800 --> 00:29:04,680
Speaker 1: tent Ted Winds in New York. We're talking about how

541
00:29:04,840 --> 00:29:08,920
Speaker 1: Manhattan now has more EV charging sites than gas stations.

542
00:29:09,280 --> 00:29:12,680
Speaker 1: Um Corney's Dona Hollan ktr H in Houston. Shoppers should

543
00:29:12,720 --> 00:29:16,600
Speaker 1: see big retail discounts ahead on excess merchandise. I'm Gina

544
00:29:16,680 --> 00:29:19,680
Speaker 1: Servetti and for w c c O in Minneapolis, I'm

545
00:29:19,760 --> 00:29:22,480
Speaker 1: reporting that Target joins a list of companies with the

546
00:29:22,600 --> 00:29:26,240
Speaker 1: majority of its leadership comprised of directors who are members

547
00:29:26,320 --> 00:29:30,120
Speaker 1: of underrepresented groups. I'm Stephen Carol and Bloomberg D A B.

548
00:29:30,240 --> 00:29:32,280
Speaker 1: TOD to the Radio and London. We've been reporting on

549
00:29:32,360 --> 00:29:34,440
Speaker 1: the you turned by the governments over its plans to

550
00:29:34,520 --> 00:29:37,560
Speaker 1: scroup the top rate of income tax. I'm Scott Carr

551
00:29:37,680 --> 00:29:40,320
Speaker 1: on w d c H in Washington. I'm reporting a

552
00:29:40,440 --> 00:29:44,040
Speaker 1: new meta tech accelerator is getting a big boost. And

553
00:29:44,200 --> 00:29:47,160
Speaker 1: those are some of the stories our twentyd Bloomberg journalists

554
00:29:47,160 --> 00:29:49,200
Speaker 1: and analysts are working on this morning around the world.

555
00:29:49,320 --> 00:29:52,160
Speaker 1: It's five thirty nine on Wall Street. The following is

556
00:29:52,240 --> 00:29:56,120
Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by

557
00:29:56,160 --> 00:30:00,600
Speaker 1: the Bloomberg Editorial Board. Those disheartened by the election campaign

558
00:30:00,720 --> 00:30:03,719
Speaker 1: run by Georgia Maloney may think that the best thing

559
00:30:03,800 --> 00:30:08,000
Speaker 1: about Italy's incoming government will be its likely transience. Hers

560
00:30:08,080 --> 00:30:11,240
Speaker 1: will be the country's seventieth government since World War Two.

561
00:30:11,880 --> 00:30:14,800
Speaker 1: But it would be mistaken to conclude that Italian leaders

562
00:30:14,840 --> 00:30:18,520
Speaker 1: don't matter. To the contrary, Europe needs is stable Italy

563
00:30:18,800 --> 00:30:23,000
Speaker 1: capable of tackling long festering economic and social problems. But

564
00:30:23,160 --> 00:30:26,640
Speaker 1: if Maloney wants to achieve anything while in office, she'll

565
00:30:26,680 --> 00:30:30,520
Speaker 1: have to abandon the retrograde rhetoric that characterized her campaign.

566
00:30:31,080 --> 00:30:35,120
Speaker 1: The sooner she moves beyond provocations and focuses on delivering

567
00:30:35,240 --> 00:30:38,560
Speaker 1: stable government and growth, the better her chances of staying

568
00:30:38,600 --> 00:30:42,400
Speaker 1: relevant and in office. This editorial was written by the

569
00:30:42,400 --> 00:30:45,840
Speaker 1: Bloomberg Editorial Board. For more Bloomberg opinion, please go to

570
00:30:45,880 --> 00:30:48,960
Speaker 1: Bloomberg dot com, slash opinion or O P I n

571
00:30:49,040 --> 00:30:52,520
Speaker 1: go on the Bloomberg terminal. This has been Bloomberg Opinion.

572
00:30:52,760 --> 00:30:56,080
Speaker 1: Listen for Bloomberg opinion editorials every weekday. At this time,

573
00:30:56,240 --> 00:30:59,440
Speaker 1: terminal customers can read more at O P I n go.

574
00:31:00,240 --> 00:31:04,240
Speaker 1: SMP futures little changed, DAL futures up seventy seven points,

575
00:31:04,360 --> 00:31:07,680
Speaker 1: NASTACK futures are lower by forty five points, and the

576
00:31:07,760 --> 00:31:10,800
Speaker 1: tenure Treasury is up eleven thirty seconds. Yield three point

577
00:31:10,960 --> 00:31:13,560
Speaker 1: seven eight per cent. We look ahead to the fourth

578
00:31:13,640 --> 00:31:16,720
Speaker 1: quarter next with Charlotte Ryland, co head of Investments at

579
00:31:16,800 --> 00:31:22,840
Speaker 1: c c l A Investment Management. This is Bloomberg Bloomberg

580
00:31:22,840 --> 00:31:25,280
Speaker 1: eleven three oh weather mostly cloudy, breezy, chance for some

581
00:31:25,440 --> 00:31:27,880
Speaker 1: showers today with a high near sixty degrees, occasional rain.

582
00:31:27,960 --> 00:31:31,479
Speaker 1: Tomorrow higher sixty once again showers, and Wednesday we'll get

583
00:31:31,560 --> 00:31:33,560
Speaker 1: up to the low sixties. Right now forty nine in

584
00:31:33,680 --> 00:31:40,320
Speaker 1: Central Park Markets, headlines and breaking news twenty four hours

585
00:31:40,360 --> 00:31:43,520
Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business Outland

586
00:31:43,640 --> 00:31:53,400
Speaker 1: at Bloomberg Quick Tape, He's a Bloomberg business lash and

587
00:31:53,520 --> 00:31:55,680
Speaker 1: I'm Cara a Moscow. This updates brought to you by

588
00:31:55,880 --> 00:31:58,160
Speaker 1: s ci Yes said managers don't get results that are

589
00:31:58,160 --> 00:32:00,280
Speaker 1: off the charts when their solutions are off the shelf.

590
00:32:00,360 --> 00:32:03,640
Speaker 1: Learn how sci is operating platform can turn infrastructur into

591
00:32:03,680 --> 00:32:06,920
Speaker 1: a competitive advantage at sc i C dot Com. Slash

592
00:32:07,040 --> 00:32:10,440
Speaker 1: Tech Global stocks falling to a two year low while

593
00:32:10,560 --> 00:32:14,000
Speaker 1: U stock index futures are struggling for direction. This comes

594
00:32:14,040 --> 00:32:17,320
Speaker 1: amo concerned hawkish policies by global central banks will spark

595
00:32:17,360 --> 00:32:20,640
Speaker 1: a recession and earnings contraction and the pound is rising

596
00:32:20,680 --> 00:32:22,560
Speaker 1: as the UK with drew a plan to abolish the

597
00:32:22,680 --> 00:32:25,520
Speaker 1: top income tax rate. We checked the markets every fifteen

598
00:32:25,520 --> 00:32:27,800
Speaker 1: minutes throughout the trading day on bloomberg S and p

599
00:32:28,000 --> 00:32:31,520
Speaker 1: Future is a little change down, futures up sixty NASDAG

600
00:32:31,600 --> 00:32:34,840
Speaker 1: futures down fifty two. The decks in Germany is down

601
00:32:34,960 --> 00:32:37,640
Speaker 1: nine tenths of upper set ten year treasury up twelve

602
00:32:37,680 --> 00:32:40,480
Speaker 1: thirty seconds. He'll three point seven seven percent. They yield

603
00:32:40,520 --> 00:32:43,040
Speaker 1: on the two year four point one eight percent. Nine

604
00:32:43,120 --> 00:32:45,600
Speaker 1: max Screwed oil is up four percent, up three dollars

605
00:32:45,640 --> 00:32:47,920
Speaker 1: twenty one cents at eighty two dollars seventy one cents

606
00:32:47,960 --> 00:32:50,240
Speaker 1: a barrel. Co makes goal down a quarter percent or

607
00:32:50,240 --> 00:32:52,880
Speaker 1: four dollars twenty cents at sixty and sixty seven ninety

608
00:32:52,920 --> 00:32:56,120
Speaker 1: an ounce. The euro point nine five eight against the dollar,

609
00:32:56,160 --> 00:32:58,560
Speaker 1: British pound one point one one seven six and the

610
00:32:58,640 --> 00:33:01,760
Speaker 1: yen one forty five point on five. Bitcoin is down

611
00:33:01,840 --> 00:33:06,560
Speaker 1: half percent at nine. That's a Bloomberg business flash. Now

612
00:33:06,640 --> 00:33:09,040
Speaker 1: here's Michael bar with more on what's going on around

613
00:33:09,040 --> 00:33:11,400
Speaker 1: the world. Michael, thank you very much, Karen. He will

614
00:33:11,400 --> 00:33:15,080
Speaker 1: be right leaning. Brazilian President John ere Bolsonaro against his

615
00:33:15,240 --> 00:33:19,240
Speaker 1: leftist challenger Luis Ignatio Lula Da Silva and in October

616
00:33:19,360 --> 00:33:23,920
Speaker 1: thirty runoff election yesterday, neither candidate got a simple majority

617
00:33:24,000 --> 00:33:27,400
Speaker 1: to win in the first round. Spante Pambo is the

618
00:33:27,760 --> 00:33:33,240
Speaker 1: Nobel Prize winner in Physiology or Medicine on Human evolution research.

619
00:33:33,760 --> 00:33:36,640
Speaker 1: In the NFL, the Giants and Jets won the Patriots,

620
00:33:36,720 --> 00:33:41,200
Speaker 1: Commanders and Ravens lost play the Rams tonight in baseball,

621
00:33:41,240 --> 00:33:43,720
Speaker 1: and the Yankees lost to the Orioles three one. The

622
00:33:43,800 --> 00:33:46,800
Speaker 1: Mets lost to the Braves five three. Atlanta swept the

623
00:33:46,880 --> 00:33:49,000
Speaker 1: series and knocked the Mets out of the lead. In

624
00:33:49,080 --> 00:33:52,480
Speaker 1: the NL East, the Red Sox and Nationals lost. The

625
00:33:52,640 --> 00:33:55,960
Speaker 1: A's and Giants won. Global news twenty four hours a

626
00:33:56,040 --> 00:33:59,360
Speaker 1: day on air and on Bloomberg Quittake, powered by more

627
00:33:59,440 --> 00:34:01,640
Speaker 1: than twenties up and under journalist analyist more than a

628
00:34:01,720 --> 00:34:05,720
Speaker 1: hundred twenty countries. Michael Barr, this is Bloomberg Navan. Okay, Michael. Thanks,

629
00:34:05,760 --> 00:34:08,120
Speaker 1: It's five forty nine on Wall Street Live from the

630
00:34:08,160 --> 00:34:11,960
Speaker 1: Bloomberg Interactive Brokers Studios. This is Bloomberg day Break. Let's

631
00:34:11,960 --> 00:34:14,239
Speaker 1: bring in our next guest now, Charlotte Ryland. It's co

632
00:34:14,360 --> 00:34:18,480
Speaker 1: head of Investments at c C l A Investment Management, Charlotte,

633
00:34:18,520 --> 00:34:20,359
Speaker 1: It's great to speak with you on the first day

634
00:34:20,480 --> 00:34:23,200
Speaker 1: of the fourth quarter as we wait for a winning

635
00:34:23,320 --> 00:34:26,120
Speaker 1: quarter for stocks. Do you think this market is close

636
00:34:26,160 --> 00:34:30,200
Speaker 1: to capitulation? Uh? Well, I think it's going to completely

637
00:34:30,239 --> 00:34:32,240
Speaker 1: depend on where we get to with the earning season.

638
00:34:32,239 --> 00:34:34,480
Speaker 1: And we've also had some sort of big, high profile

639
00:34:34,520 --> 00:34:37,759
Speaker 1: profit warnings FedEx, Nike coming through already. Um, and the

640
00:34:37,840 --> 00:34:40,000
Speaker 1: market is is pretty worried about, you know, what the

641
00:34:40,080 --> 00:34:42,000
Speaker 1: direction of earning. So, I mean, if it comes through

642
00:34:42,000 --> 00:34:44,120
Speaker 1: that are actually companies hold up, then that could be

643
00:34:44,160 --> 00:34:46,000
Speaker 1: the big surprise. But I'm afraid I'm probably not that

644
00:34:46,080 --> 00:34:48,080
Speaker 1: confident that that's going to be the case. What makes

645
00:34:48,120 --> 00:34:50,360
Speaker 1: you say that, Well, I mean I think you know,

646
00:34:50,719 --> 00:34:54,279
Speaker 1: you've got a consumer which she's clearly struggling with with

647
00:34:54,560 --> 00:34:57,920
Speaker 1: rising borrowing costs. You've got you know, a lot of

648
00:34:58,000 --> 00:35:00,839
Speaker 1: the impact of that is delayed. It octates a while

649
00:35:00,840 --> 00:35:03,760
Speaker 1: to come through into numbers. Um. You know, clearly companies

650
00:35:03,800 --> 00:35:05,959
Speaker 1: are struggling, whether it be in terms of currencies, whether

651
00:35:06,000 --> 00:35:08,400
Speaker 1: it be in terms of more material costs which have

652
00:35:08,520 --> 00:35:10,600
Speaker 1: moved up so high. Um. So I think I think

653
00:35:10,600 --> 00:35:12,320
Speaker 1: it's going to continue to be quite a difficult situation.

654
00:35:12,360 --> 00:35:15,120
Speaker 1: You're certainly going to see the consumer, particularly particularly in Europe,

655
00:35:15,440 --> 00:35:17,520
Speaker 1: is going to be struggling. Are you looking for further

656
00:35:17,560 --> 00:35:20,360
Speaker 1: earnings revisions to the downside then as we get closer

657
00:35:20,440 --> 00:35:23,399
Speaker 1: to earning season, Yeah, I mean, I think I think

658
00:35:23,880 --> 00:35:25,520
Speaker 1: that's probably what we would expect. I mean, you know,

659
00:35:25,560 --> 00:35:27,760
Speaker 1: if you look at sort of typical recessions, you've probably

660
00:35:27,840 --> 00:35:31,640
Speaker 1: got you know, that can come down from earnings. Whether

661
00:35:31,719 --> 00:35:33,880
Speaker 1: this will be entirely that, I don't know, because you've

662
00:35:33,880 --> 00:35:36,719
Speaker 1: clearly got positive pricing this time, even if volumes are weaker,

663
00:35:37,040 --> 00:35:38,840
Speaker 1: so it might not be quite as severe as that.

664
00:35:38,960 --> 00:35:41,879
Speaker 1: But I think you know, certainly, you having had quite

665
00:35:41,880 --> 00:35:46,000
Speaker 1: an optimistic earnings pitcher for most of the year party

666
00:35:46,040 --> 00:35:48,800
Speaker 1: hold up by you know, your companies, that's beginning to

667
00:35:48,880 --> 00:35:51,319
Speaker 1: turn and we'd explate that sort of continue off into

668
00:35:51,480 --> 00:35:54,000
Speaker 1: the second half of the year as we see markets

669
00:35:54,040 --> 00:35:56,880
Speaker 1: continue to fall. What does that mean for central banks?

670
00:35:56,960 --> 00:36:00,200
Speaker 1: Could we start to see the market push the head

671
00:36:00,200 --> 00:36:03,840
Speaker 1: and other central banks toward that pivot that many investors

672
00:36:03,920 --> 00:36:07,560
Speaker 1: have been looking forward to at least slower interest rate HIGs. Yeah,

673
00:36:07,560 --> 00:36:09,080
Speaker 1: I mean, I think we can sort of look back

674
00:36:09,160 --> 00:36:11,759
Speaker 1: for you know, twenty eighteen period and say, well, you know,

675
00:36:11,880 --> 00:36:15,200
Speaker 1: central banks blinked and stuff that from from the tightening.

676
00:36:15,200 --> 00:36:17,040
Speaker 1: But I think we're in a very different situation now.

677
00:36:17,080 --> 00:36:19,960
Speaker 1: We're now in one where you've got inflation still running

678
00:36:19,960 --> 00:36:22,600
Speaker 1: at sort of eight cent plus um, you know, and

679
00:36:22,640 --> 00:36:24,880
Speaker 1: we haven't really seen that begin to turn yet. So

680
00:36:24,960 --> 00:36:27,359
Speaker 1: I think while that remains a problem, while we've still

681
00:36:27,440 --> 00:36:31,120
Speaker 1: got very highly wage growth and the unemployment picture being

682
00:36:31,239 --> 00:36:33,840
Speaker 1: you know, such a low unemployment, such a tight labor market,

683
00:36:34,160 --> 00:36:36,040
Speaker 1: I think it's gonna be very difficult central banks to

684
00:36:36,360 --> 00:36:38,319
Speaker 1: step away. I mean, clear we saw the bank having

685
00:36:38,360 --> 00:36:40,880
Speaker 1: done stepping last week when we're having something of a

686
00:36:40,960 --> 00:36:43,080
Speaker 1: crisis mark some of the UK penstrom plants because they're

687
00:36:43,080 --> 00:36:45,200
Speaker 1: hedging it of course. So I think genteral banks will

688
00:36:45,239 --> 00:36:47,520
Speaker 1: call markets if they have to. But are they going

689
00:36:47,600 --> 00:36:50,200
Speaker 1: to reverse course. I'm not sure that they are. What's

690
00:36:50,440 --> 00:36:52,960
Speaker 1: the risk that central banks go too far? Then? If

691
00:36:54,080 --> 00:36:57,439
Speaker 1: employment does continue to stay at these sort of high

692
00:36:57,520 --> 00:36:59,360
Speaker 1: levels that we're seeing, is there a risk of a

693
00:36:59,440 --> 00:37:03,880
Speaker 1: policy was taked by the Fed? Um, Yes, there is.

694
00:37:04,080 --> 00:37:06,160
Speaker 1: I mean I think you know, markets are sort of

695
00:37:06,200 --> 00:37:09,160
Speaker 1: pricing in now sort of four or five centers as

696
00:37:09,239 --> 00:37:12,960
Speaker 1: being sort of terminal rates uh interest rate hikes. I

697
00:37:13,000 --> 00:37:16,080
Speaker 1: mean certainly we've seen in past emflacing pictures, you know,

698
00:37:16,520 --> 00:37:19,440
Speaker 1: rates much higher than that, So we're certainly not pricing

699
00:37:19,480 --> 00:37:22,279
Speaker 1: that in yet. But you know, clue the implications of

700
00:37:22,360 --> 00:37:24,840
Speaker 1: that in terms of the consuming terms of companies, particularly

701
00:37:24,840 --> 00:37:26,920
Speaker 1: those who have got more stretched balance sheets, those will

702
00:37:26,960 --> 00:37:29,560
Speaker 1: be going to come through somewhat later than the rate hikes.

703
00:37:29,640 --> 00:37:31,520
Speaker 1: So I think that's definitely someone's gonna keep watching them.

704
00:37:31,920 --> 00:37:34,759
Speaker 1: Got about thirty seconds left here. Do you see opportunity

705
00:37:35,040 --> 00:37:38,520
Speaker 1: in this market given the bearish sentiment we've been seeing

706
00:37:38,560 --> 00:37:41,680
Speaker 1: over the last several months here, Yeah, absolutely we do.

707
00:37:41,760 --> 00:37:43,279
Speaker 1: I mean I think you know, you've seen a number

708
00:37:43,360 --> 00:37:45,400
Speaker 1: of companies really pulled back. I mean things like like

709
00:37:45,440 --> 00:37:48,879
Speaker 1: Adobe for example. You know clearly there's some some worries

710
00:37:48,880 --> 00:37:51,439
Speaker 1: about that further acquisition, but we think that looks extremely cheap.

711
00:37:52,200 --> 00:37:53,920
Speaker 1: And also some of the things within Europe it's like

712
00:37:54,000 --> 00:37:56,560
Speaker 1: like an Estial, Locks Artica or Perno for example. I mean,

713
00:37:56,600 --> 00:37:58,799
Speaker 1: these aren't companies which are being particularly hit by by

714
00:37:58,840 --> 00:38:01,480
Speaker 1: the macro situations, and I'm looking to value to us.

715
00:38:02,239 --> 00:38:04,279
Speaker 1: Thank you, I really appreciate you coming on with us

716
00:38:04,360 --> 00:38:07,319
Speaker 1: this morning. Charlotte Ryland is co head of Investments at

717
00:38:07,400 --> 00:38:11,040
Speaker 1: c c l A Investment Management. Karen Verry, Nathan, thank you.

718
00:38:11,200 --> 00:38:13,719
Speaker 1: It is five fifty three on Wall Street. Time for

719
00:38:13,800 --> 00:38:16,000
Speaker 1: the Bloomberg The Law Report. It has brought to you

720
00:38:16,160 --> 00:38:21,360
Speaker 1: by American Arbitration Association. Business disputes are inevitable, resolve faster

721
00:38:21,480 --> 00:38:25,600
Speaker 1: with the American Arbitration Association, the global leader in alternative

722
00:38:25,640 --> 00:38:28,960
Speaker 1: dispute resolution for over ninety years. More at a d

723
00:38:29,280 --> 00:38:31,680
Speaker 1: R dot org. Now, let's get to the legal stories

724
00:38:31,760 --> 00:38:38,560
Speaker 1: we're watching this morning. From Bloomberg's Jeff Bellinger, the Food

725
00:38:38,600 --> 00:38:41,920
Speaker 1: and Drug Administration plans to allow the importation of certain

726
00:38:42,040 --> 00:38:45,919
Speaker 1: infant formula products at least through October of twenty five.

727
00:38:46,080 --> 00:38:49,680
Speaker 1: The National Labor Relations Board ruled the Team Mobile unlawfully

728
00:38:49,800 --> 00:38:53,279
Speaker 1: disciplined a worker for sending a union related email, but

729
00:38:53,520 --> 00:38:56,280
Speaker 1: the board set employers do have the right to restrict

730
00:38:56,360 --> 00:38:59,120
Speaker 1: the use of workers email for non work issues. A

731
00:38:59,280 --> 00:39:02,680
Speaker 1: Pizza Hut for Anchise, facing a proposed class action in

732
00:39:02,800 --> 00:39:07,040
Speaker 1: Illinois over the collection of employee biometric information, has moved

733
00:39:07,120 --> 00:39:11,600
Speaker 1: the state case to federal port. Bloomberg Law Everything you need,

734
00:39:11,880 --> 00:39:16,200
Speaker 1: all on one legal research platform, including guidance Analysis and

735
00:39:16,320 --> 00:39:20,560
Speaker 1: Bloomberg Market Intelligence. Find out more at Bloomberg law dot com.

736
00:39:21,520 --> 00:39:24,560
Speaker 1: All right, Jeff, thank you. Now another legal story we're watching.

737
00:39:24,680 --> 00:39:27,719
Speaker 1: The new Supreme Court term starts today and this week

738
00:39:27,800 --> 00:39:31,480
Speaker 1: the Court will hear an important case involving redistricting and

739
00:39:31,560 --> 00:39:34,399
Speaker 1: the new districts being drawn around the country to govern

740
00:39:34,520 --> 00:39:38,840
Speaker 1: the next decades elections. This case involves Alabama's congressional maps

741
00:39:38,920 --> 00:39:42,919
Speaker 1: drawn by the Republican legislature, which packed black voters into

742
00:39:43,040 --> 00:39:46,360
Speaker 1: one of seven districts in the state. For more, Bloomberg

743
00:39:46,440 --> 00:39:50,560
Speaker 1: student Grosso speaks to former United States Solicitor General Gregory

744
00:39:50,719 --> 00:39:55,280
Speaker 1: gar a partner at Latham and Watkins Meryl v. Milligan.

745
00:39:55,360 --> 00:40:00,160
Speaker 1: Alabama's congressional map about tent of Alabama's residents are act,

746
00:40:00,239 --> 00:40:03,360
Speaker 1: but there's only one majority black district out of seven

747
00:40:03,440 --> 00:40:06,480
Speaker 1: in the state. So this is another election case. And

748
00:40:06,520 --> 00:40:09,960
Speaker 1: the question in this case is vote dilution under the

749
00:40:10,080 --> 00:40:13,080
Speaker 1: Voting Rights Act. And the allegation in this case is

750
00:40:13,200 --> 00:40:17,359
Speaker 1: that the legislature has impermissibly diluted the black vote by

751
00:40:17,400 --> 00:40:21,239
Speaker 1: splitting up black communities and drawing the congressional districts. And

752
00:40:21,320 --> 00:40:25,000
Speaker 1: this is obviously an important and recurring issue and drawing

753
00:40:25,080 --> 00:40:28,640
Speaker 1: districts across the country, and in some respects it overlaps

754
00:40:28,760 --> 00:40:31,920
Speaker 1: with the admissions cases, and that you know, all of

755
00:40:31,960 --> 00:40:35,160
Speaker 1: these cases involves questions of how race can be used

756
00:40:35,239 --> 00:40:39,279
Speaker 1: by government decision makers. And the Voting Rights Act is

757
00:40:39,320 --> 00:40:42,120
Speaker 1: an area that this Court has been fairly active in

758
00:40:42,440 --> 00:40:46,040
Speaker 1: going back the past decade, and with the newly constituted

759
00:40:46,160 --> 00:40:49,239
Speaker 1: court their number of recent justices who have come onto

760
00:40:49,280 --> 00:40:51,320
Speaker 1: the Court before the last big voting rights case, this

761
00:40:51,440 --> 00:40:53,960
Speaker 1: is an opportunity for the Court to re examine its

762
00:40:54,000 --> 00:40:57,400
Speaker 1: precedents in this area and consider the proper role of

763
00:40:57,840 --> 00:41:01,080
Speaker 1: race in a judicating a a solution case under the

764
00:41:01,440 --> 00:41:04,320
Speaker 1: Voting Rights Act. So in February, the Court, in the

765
00:41:04,400 --> 00:41:06,640
Speaker 1: five to four vote, put a hold on the lower

766
00:41:06,719 --> 00:41:09,799
Speaker 1: courts order which had required Alabama to redraw the NAP

767
00:41:09,880 --> 00:41:13,919
Speaker 1: and in her descent, Justice Kagan said that accepting Alabama's

768
00:41:14,000 --> 00:41:18,360
Speaker 1: contentions would rewrite decades of this Court's precedent about the

769
00:41:18,440 --> 00:41:21,440
Speaker 1: Voting Rights Act. I mean, if they did that, that

770
00:41:21,520 --> 00:41:24,880
Speaker 1: wouldn't be particularly surprising considering what they've done to the

771
00:41:24,960 --> 00:41:27,680
Speaker 1: Voting Rights Act even before the addition of the three

772
00:41:27,920 --> 00:41:31,160
Speaker 1: Trump appointees. I mean, that's certainly true. If you go

773
00:41:31,280 --> 00:41:33,200
Speaker 1: back to the Shelby County case, that was one of

774
00:41:33,280 --> 00:41:36,120
Speaker 1: the more contentious cases that the Court has occurred and

775
00:41:36,239 --> 00:41:39,239
Speaker 1: decided in the last ten years or so. And these

776
00:41:39,280 --> 00:41:43,799
Speaker 1: are very divisive cases in which justices have strongly held views.

777
00:41:43,880 --> 00:41:46,600
Speaker 1: So it won't be surprising if there are two different

778
00:41:46,640 --> 00:41:49,279
Speaker 1: camps on this issue as to how the case comes out.

779
00:41:49,480 --> 00:41:52,160
Speaker 1: And you know what that means for the Section two

780
00:41:52,280 --> 00:41:54,439
Speaker 1: doctor going forward. We'll just have to wait and see.

781
00:41:55,320 --> 00:41:59,000
Speaker 1: And as former United States Solicitor General Gregory gar speaking

782
00:41:59,040 --> 00:42:02,080
Speaker 1: with Bloomberg student Grosso. Catch more of that interview, plus

783
00:42:02,120 --> 00:42:05,200
Speaker 1: analysis of the latest legal news by subscribing to the

784
00:42:05,239 --> 00:42:08,560
Speaker 1: Bloomberg Law Podcast or downloading the show at Bloomberg dot

785
00:42:08,640 --> 00:42:12,600
Speaker 1: com slash podcast. Attorneys can find exceptional legal research and

786
00:42:12,640 --> 00:42:15,719
Speaker 1: business development tools at Bloomberg Law dot com and on

787
00:42:15,800 --> 00:42:20,120
Speaker 1: the Bloomberg terminal at b Law Go. Futures this morning,

788
00:42:20,320 --> 00:42:23,400
Speaker 1: S and P futures anyway, are little change. DAL futures

789
00:42:23,440 --> 00:42:26,280
Speaker 1: are higher up seventy eight points and now SDAYG futures

790
00:42:26,400 --> 00:42:30,200
Speaker 1: lower down thirty eight. Ten year treasury up eleven thirty seconds.

791
00:42:30,280 --> 00:42:32,440
Speaker 1: You know, three points seven eight percent, the yield on

792
00:42:32,520 --> 00:42:35,960
Speaker 1: the two year four point one nine per cent, and

793
00:42:36,040 --> 00:42:39,600
Speaker 1: the British pound one point four against the dollar. Still

794
00:42:39,640 --> 00:42:42,080
Speaker 1: ahead on Bloomberg Daybreak and check on the business headlines

795
00:42:42,120 --> 00:42:44,080
Speaker 1: and all the news you need to start your day.

796
00:42:44,640 --> 00:42:46,000
Speaker 1: This is Bloomberg.