WEBVTT - Bloomberg Daybreak: September 30, 2022 - Hour 1 (Radio) 0:00:01.800 --> 0:00:05.039 Life from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.120 --> 0:00:08.920 day Break for Friday, September two. Coming up this hour 0:00:09.080 --> 0:00:12.400 hurricaney and takes in that the Carolinas as Florida deals 0:00:12.400 --> 0:00:14.680 with the devastation stops begin the last day of the 0:00:14.760 --> 0:00:17.760 quarter at twenty two month lows. The pound recoups all 0:00:17.800 --> 0:00:20.600 its losses after last week's text cut announcement, and we'll 0:00:20.640 --> 0:00:23.040 tell you why shares of Nike are not doing it 0:00:23.079 --> 0:00:26.400 for investors. This morning, Shock grief and outrage over the 0:00:26.480 --> 0:00:28.680 random stabbing death of a New York City E M. 0:00:28.760 --> 0:00:32.159 S veteran plus Russian President poop and will finalize annexation 0:00:32.240 --> 0:00:35.640 of Ukraine region. I'm Blachael Blair. More ahead, I'm John Stash. 0:00:35.640 --> 0:00:38.519 Aaron Sports The Big Mets Brain Series begins to Night Atlanta, 0:00:38.520 --> 0:00:41.440 Aaron Judge of the Yankees, host the Orioles NFL Bengals 0:00:41.440 --> 0:00:46.920 beat the Dolbury. That's All's training ahead on Bloomberg Daybreak 0:00:47.240 --> 0:00:51.600 on Bloomberg. He Living Free on New York Bloomberg one, Washington, 0:00:51.680 --> 0:00:55.320 d C, Bloomberg one oh six one, Boston, Bloomberg nine 0:00:55.360 --> 0:00:59.160 sixties and Francisco Sirius x M one nine team and 0:00:59.240 --> 0:01:02.319 around the world on Bloomberg Radio dot com and via 0:01:02.400 --> 0:01:09.319 the Bloomberg Business and good Friday morning. I'm Nathan Hagar 0:01:09.640 --> 0:01:12.640 and I'm Karen Moscow, and US index futures are higher 0:01:12.680 --> 0:01:14.399 this morning. We're coming up to five o one on 0:01:14.440 --> 0:01:16.600 Wall Street, and we check the markets every fifteen minutes 0:01:16.600 --> 0:01:20.080 throughout the trading day. On Bloomberg SMP futures up thirty 0:01:20.120 --> 0:01:22.680 five points down futures have two D thirty one, and 0:01:22.800 --> 0:01:25.759 NASDACK futures have one hundred three ten year treasury up 0:01:25.760 --> 0:01:29.479 eighteen thirty seconds, you know, three point seven one percent. Nathan, 0:01:29.520 --> 0:01:31.480 all right, Karen, we'll get back to markets in a minute, 0:01:31.480 --> 0:01:33.319 but first we want to get to the latest on 0:01:33.400 --> 0:01:36.680 Hurricane Ian. It is a hurricane again, set for landfall 0:01:36.760 --> 0:01:40.240 later today in South Carolina. President Biden has already declared 0:01:40.280 --> 0:01:43.880 an emergency for the state. This woman is in Fort Myers, Florida, 0:01:43.920 --> 0:01:47.360 where Ian came in as a powerful category four storm. 0:01:47.400 --> 0:01:50.800 I am the stupidest woman. I'm from Florida. I went 0:01:50.840 --> 0:01:55.160 through Andrew Irma, I decided to stay. Did not know 0:01:55.200 --> 0:01:56.680 it's going to get to be a four and a five. 0:01:56.920 --> 0:01:59.880 President Biden says Ian could be one of the deadliest 0:02:00.000 --> 0:02:03.840 worms in Florida's history. The numbers of still are still unclear, 0:02:03.960 --> 0:02:07.320 but we're hearing early reports of what may be substantial 0:02:07.840 --> 0:02:10.040 loss of life. When the President says he has been 0:02:10.040 --> 0:02:13.000 in touch with Florida Governor Rhonda Santis, the governor says 0:02:13.000 --> 0:02:16.080 it will take time to confirm casualties, but rescuers have 0:02:16.240 --> 0:02:19.560 been busy. There's been more than seven hundred confirmed rescues 0:02:19.600 --> 0:02:22.320 and there's likely many more than that that will be 0:02:22.400 --> 0:02:25.639 confirmed as more data comes in. Governor to Santa says 0:02:25.680 --> 0:02:27.919 the state is trucking in supplies to those in need, 0:02:27.960 --> 0:02:31.079 but blackouts could last for days. And we'll think you 0:02:31.160 --> 0:02:34.200 posted on the latest damage and disruption from this store. 0:02:34.240 --> 0:02:36.880 And but first, Nathan, let's turn back to the market's 0:02:37.000 --> 0:02:39.560 It's the last day of the third quarter and stocks 0:02:39.560 --> 0:02:41.960 begin this session at a twenty two month low. So 0:02:42.080 --> 0:02:45.400 far this quarter, one point three trillion dollars has been 0:02:45.480 --> 0:02:48.400 wiped off the value of the SNP five D and 0:02:48.560 --> 0:02:51.560 c f r A. Chief investment strategist Sam Stovall says 0:02:51.840 --> 0:02:55.920 October could be even worse, even though September does have 0:02:56.000 --> 0:03:00.840 a reputation of being volatile. Of the trading days in 0:03:00.919 --> 0:03:04.720 September typically see a one percent move either up or down, 0:03:05.040 --> 0:03:07.519 but we've had two and a half times that number 0:03:07.520 --> 0:03:10.160 this year. And if you think September is bad, just 0:03:10.200 --> 0:03:14.680 wait till October because that traditionally sees thirty six more 0:03:14.840 --> 0:03:18.040 volatility than the average for the other eleven months of 0:03:18.080 --> 0:03:21.400 the year. Cef A Sam stove All expects stocks too 0:03:21.520 --> 0:03:24.680 soon retest their lows, and hawks talk from the fed's 0:03:24.680 --> 0:03:28.040 been weighing on markets, Karen. San Francisco FED President Mary 0:03:28.120 --> 0:03:30.880 Daily says the Central Bank is committed to raising interest 0:03:30.960 --> 0:03:34.760 rates until it restores price stability. Navigating the economy toward 0:03:34.800 --> 0:03:38.640 a more sustainable path necessitates higher interest rates in a 0:03:38.760 --> 0:03:42.200 down shift in the pace of economic activity and the 0:03:42.280 --> 0:03:46.760 labor market, but for now inducing a deep recession the 0:03:46.840 --> 0:03:49.040 kind we had back in the nineteen eighties, or some 0:03:49.080 --> 0:03:52.200 would even think of the Great Recession, that is not warranted. 0:03:52.880 --> 0:03:55.880 San Francisco FED President Mary Daily says she is worried 0:03:55.880 --> 0:03:59.000 about possibly tightening policy too much. Well, the Fed is 0:03:59.080 --> 0:04:01.840 keeping its eye on eight nomic data. Nathan, including another 0:04:01.880 --> 0:04:05.080 report on sentiment this morning we get September is reading 0:04:05.080 --> 0:04:07.920 from the University of Michigan at ten am Wall Street Time, 0:04:08.200 --> 0:04:10.240 and we get a preview from Bloomberg's of any down 0:04:10.320 --> 0:04:14.040 Judas the University of Michigan consumer sentiment index has been 0:04:14.160 --> 0:04:18.360 recovering after setting a record low in June gasoline prices. 0:04:18.440 --> 0:04:22.400 If he's somewhat dangerous, persists, though there's talk about recession 0:04:22.480 --> 0:04:26.320 with the Federal Reserve raising interest rates to fight inflation. Moreover, 0:04:26.400 --> 0:04:29.920 Bloomberg Economics says Americans are worry of the inflation outlook 0:04:30.160 --> 0:04:32.600 with uncertainty about the costs are living running at the 0:04:32.680 --> 0:04:37.039 highest in forty years, they Judas Bloomberg Day Break, All right, Vinnie, 0:04:37.080 --> 0:04:39.560 thank you. In Europe this morning, the pound has rallied 0:04:39.560 --> 0:04:43.040 back to levels last scene before the government announced controversial 0:04:43.080 --> 0:04:45.880 tax cuts last week. Let's go live to London and 0:04:45.880 --> 0:04:48.040 get the latest with Bloomberg's You and Potts. Good morning, 0:04:48.600 --> 0:04:50.760 Good morning Nathan and caring the pound higher for a 0:04:50.920 --> 0:04:53.800 fourth day today is his trade is speculate the government 0:04:53.839 --> 0:04:56.599 will be forced to backtrack from his big package of 0:04:56.760 --> 0:05:00.279 unfunded taxcts. The butt of the currency and bomba Kit's 0:05:00.360 --> 0:05:03.240 earlier this week. The move caps an extremely volatile week 0:05:03.279 --> 0:05:06.440 for UK markets, which saw the dramatic intervention of the 0:05:06.480 --> 0:05:08.960 Bank of England's new prime minister List Trust is at 0:05:08.960 --> 0:05:12.200 the Conservative Party conference this weekend, and one flash opinion 0:05:12.200 --> 0:05:16.760 poll puts A thirty three points behind the opposition Labor Party. Elsewhere, 0:05:16.800 --> 0:05:19.200 just in the last few minutes, your area inflation has 0:05:19.279 --> 0:05:22.520 hit double digits for the first time ever. In London, 0:05:22.560 --> 0:05:25.000 I'm you in parts Bloomberg, daybreak, All right you and thanks. 0:05:25.000 --> 0:05:28.280 In Asia, overnight, starks fell again, putting the regional benchmark 0:05:28.320 --> 0:05:30.720 on course for its worst a monthly performance in two 0:05:30.760 --> 0:05:33.000 thousand and eight. We get the reak out from Bloomberg's 0:05:33.040 --> 0:05:36.479 Juliet Sally In Singapore. Good morning, Juliet, Good morning Karen. 0:05:36.520 --> 0:05:39.320 The ms CI Asia Pacific Index remained at April twenty 0:05:39.360 --> 0:05:42.320 twenty lows to cap at seventh straight week of declines. 0:05:42.640 --> 0:05:45.280 Equities in Japan, which has the highest weight in the 0:05:45.279 --> 0:05:48.760 Asia Index, were the biggest losers. Chinese tech shares listed 0:05:48.800 --> 0:05:51.479 in Hong Kong also under pressure, and over the week, 0:05:51.520 --> 0:05:53.839 the regional benchmark index fell four and a half percent, 0:05:54.000 --> 0:05:57.799 the most in three months. In Singapore, Juliette Sally Bloomberg daybreak, 0:05:57.880 --> 0:06:00.120 All right, Juliet. Thanks. Back here in the US, we 0:06:00.160 --> 0:06:02.200 have some corporate news of note, including the end of 0:06:02.240 --> 0:06:06.080 an era at Facebook parent Meta CEO Mark Zuckerberg's outline 0:06:06.120 --> 0:06:09.159 plans to reorganize teams and reduce headcount for the first 0:06:09.160 --> 0:06:13.119 time ever. Bloomberg Technology reporter Kurt Wagner broke the news 0:06:13.160 --> 0:06:16.680 late yesterday. In some cases, you know, when someone leaves 0:06:16.680 --> 0:06:19.159 a team, they're just not going to fill that role again. 0:06:19.320 --> 0:06:21.400 Some people are going to be moving from team to team, 0:06:21.400 --> 0:06:23.880 and then in some cases they're gonna be kicking out 0:06:24.040 --> 0:06:27.640 low performers, right, which is a pretty drastic thing that 0:06:27.680 --> 0:06:30.040 we haven't seen that Facebook in a long time or ever. 0:06:30.480 --> 0:06:32.800 And so this really just feels like a moment, right 0:06:32.839 --> 0:06:36.080 this company that has been growing and expanding for eighteen 0:06:36.120 --> 0:06:39.120 years finally hitting a bit of an issue here. Bloomberg's 0:06:39.200 --> 0:06:41.560 Kirt Wagner says Metal will likely be a smaller company 0:06:41.600 --> 0:06:43.880 in three than it was this year. Right now, the 0:06:43.880 --> 0:06:46.200 shares are up more than one percent in early trading. 0:06:46.400 --> 0:06:48.479 Well on the flip side, Nathan shares a Nike down 0:06:48.480 --> 0:06:51.320 more than nine percent. The company reported a surge in 0:06:51.320 --> 0:06:55.040 inventory and is pushing through discounts that her profitability. Higher 0:06:55.080 --> 0:06:58.119 freight costs and foreign exchange effects are also hurting Nike 0:06:58.560 --> 0:07:01.000 and Micron is slashing pretty auction, Karen because of a 0:07:01.040 --> 0:07:03.800 steep plunge in demand. The biggest US chip maker is 0:07:03.880 --> 0:07:07.560 forecasting quarterly sales almost two billion dollars below estimates, so 0:07:07.760 --> 0:07:10.760 the stock is higher. On news, Japan will subsidize Microns 0:07:10.800 --> 0:07:14.800 push to produce its new advanced chips in Hiroshima. Straight ahead, 0:07:14.840 --> 0:07:18.080 we have your latest local headlines, plus a check of sports. 0:07:18.160 --> 0:07:25.000 This is Bloomberg and it is now five oh seven 0:07:25.120 --> 0:07:27.880 on Wall Street. We're fifty three degrees in Central Park 0:07:27.880 --> 0:07:30.400 on an accident on the westbound Hempstead Turnpike near Root 0:07:30.480 --> 0:07:33.240 one oh six. Details coming up in traffic. First Michael 0:07:33.240 --> 0:07:34.960 bar with more on what's going on in New York 0:07:35.000 --> 0:07:37.640 and around the world. Good morning, Michael, Good morning Nathan. 0:07:37.680 --> 0:07:40.120 A suspect is in custody and the fatal staffing of 0:07:40.120 --> 0:07:42.520 a sixty one year old f D n Y Emergency 0:07:42.600 --> 0:07:46.520 Medical Services lieutenant. Police say she was stabbed multiple times 0:07:46.600 --> 0:07:51.120 yesterday afternoon in an unprovoked attack while on duty. New 0:07:51.200 --> 0:07:55.520 York City Mayor Eric Adams. One of our heroes, Alison 0:07:55.640 --> 0:08:02.600 russo At, twenty five year veteran of the department, stabbed 0:08:02.640 --> 0:08:06.840 by an assailant. Mayor Adams says Russo was standing outside 0:08:07.320 --> 0:08:09.520 f D N Y E M S station in Queens 0:08:09.800 --> 0:08:13.120 when the violence occurred. Russo was taken to a Queen's hospital, 0:08:13.120 --> 0:08:16.480 where she was pronounced dead. Russo's death sparked an outpouring 0:08:16.520 --> 0:08:19.320 of emotion and sympathy outside the hospital, with lots of 0:08:19.320 --> 0:08:24.680 tears and hugs. N YPD Commissioner keeaching Seoul, this deadly, senseless, 0:08:24.880 --> 0:08:27.800 broad daylight attack on a uniformed E M team member 0:08:27.920 --> 0:08:31.280 is a direct assault on our society. It is the 0:08:31.360 --> 0:08:35.600 latest consequence of the violence that we relentlessly fight in 0:08:35.640 --> 0:08:37.959 our city. The suspect of thirty or four year old 0:08:38.000 --> 0:08:40.719 man has not been charged yet. Police so far did 0:08:40.720 --> 0:08:43.880 not have a motive for the stabbing. Russian President Vladimir 0:08:43.920 --> 0:08:46.360 Putin is expected to deliver a major address at the 0:08:46.400 --> 0:08:51.280 Kremlin today formerly annexing for Ukrainian regions. This after wholing 0:08:51.360 --> 0:08:55.200 what Ukraine and Western countries said, we're phony referendums in 0:08:55.240 --> 0:08:58.600 the Russian occupied areas, President Biden made it clear the 0:08:58.679 --> 0:09:02.760 US will never recognize Russia's attempt to claim Ukrainian territory. 0:09:03.040 --> 0:09:07.280 The so called referendum was a sham, an absolute sham. 0:09:07.440 --> 0:09:11.360 The results were manufactured in Moscow. President Biden made his 0:09:11.400 --> 0:09:14.440 comments to Pacific Island leaders at the White House. The 0:09:14.480 --> 0:09:17.640 wife of Supreme Court Justice Clarence Thomas, appeared before the 0:09:17.679 --> 0:09:21.520 January six committee investigating the Capitol riot in the days 0:09:21.600 --> 0:09:25.320 after the election. Jenny Thomas urged the Trump White House 0:09:25.360 --> 0:09:28.600 to fight back and emailed state lawmakers asking them to 0:09:28.600 --> 0:09:32.560 help overturn the election results. Committee chairman Benny Thompson said 0:09:32.559 --> 0:09:35.080 that she answered some of the questions that were put 0:09:35.120 --> 0:09:37.920 before her. Her lawyer later came out and said she 0:09:38.000 --> 0:09:41.959 answered all the questions. The Senate voted overwhelmingly to approve 0:09:42.040 --> 0:09:44.720 an interim spending bill that would keep the government open 0:09:44.800 --> 0:09:48.160 until mid December. The House still has to consider the legislation. 0:09:48.480 --> 0:09:50.920 Global News twenty four hours a day on air and 0:09:51.040 --> 0:09:54.319 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:54.360 --> 0:09:57.320 journalist and analysts more than a hundred twenty countries. Michael 0:09:57.360 --> 0:09:59.840 bar this is Bloomberg, Na't it okay? Michael? Thank you 0:10:04.600 --> 0:10:06.280 coming up to five ten on All Street time for 0:10:06.320 --> 0:10:09.360 the Bloomberg Sports up TAKEO. Morning John Stenshown or Morning Nathan. 0:10:09.400 --> 0:10:13.400 You can't underestimate the significance of this Mets Braves series 0:10:13.440 --> 0:10:15.320 that begins tonight in Atlanta. Though both teams are going 0:10:15.320 --> 0:10:18.079 to the playoffs, winning the division means not having to 0:10:18.160 --> 0:10:20.400 play in the best of three wild cards series. It 0:10:20.440 --> 0:10:22.720 means being able to set up your rotation until your 0:10:22.720 --> 0:10:24.760 best pictures can go to the start of the division round. 0:10:24.760 --> 0:10:27.000 And it means not having to play the Dodgers until 0:10:27.040 --> 0:10:30.640 the NLCS. Dodgers have won eight games. Mets lead the 0:10:30.679 --> 0:10:33.240 Braves by one. They'll have Jacob Graham on the mount 0:10:33.240 --> 0:10:35.160 tonight with Max. Shows are going tomorrow, and the Mets 0:10:35.160 --> 0:10:38.240 have called up their top prospect, twenty year old catcher 0:10:38.280 --> 0:10:41.840 Francisco Alvarez. He might be the d h tonight. Yankees 0:10:41.880 --> 0:10:44.680 home for the Orioles. When Hank Aaron broke Babe Ruth's 0:10:44.679 --> 0:10:47.440 home run record nineteen seventy four, he broke it in 0:10:47.520 --> 0:10:50.800 his first game after tying it. We'll see Daron Judge does. Likewise, 0:10:50.880 --> 0:10:53.960 Judge has had this remarkable season as a free agent 0:10:54.040 --> 0:10:56.680 to Babe. The Yankees want to resign him. The team 0:10:56.720 --> 0:11:01.400 president is Randy Leming like Yankee. Uh we love having 0:11:01.440 --> 0:11:04.680 him be Yankee. You know, being a Yankee is different 0:11:04.679 --> 0:11:08.600 than anything else, So I'm hopeful. All I can tell 0:11:08.640 --> 0:11:13.319 you is health Steinbrenner, the entire organization, myself, Brian Kishman, 0:11:13.360 --> 0:11:16.400 We're not gonna leave any stone on turned trying to 0:11:16.400 --> 0:11:18.679 bring him back. Andy Leavin, a guest on The Bloomberg 0:11:18.720 --> 0:11:21.079 Business a Sports her tonight at seven, or listen to the 0:11:21.040 --> 0:11:24.640 the podcast on Apple, Spotify, Stitcher or anywhere you get 0:11:24.640 --> 0:11:26.920 through podcasts. There's a right football kicking out. Week four. 0:11:26.960 --> 0:11:31.320 Cincinnati rallied fourth quarter beat in Miami fifteen. First loss 0:11:31.320 --> 0:11:34.600 with the Dolphins leaves Philadelphia as the NFL's loan on being. 0:11:34.640 --> 0:11:37.680 Despite the storm in Tampa, the Chiefs Bucks game will 0:11:37.720 --> 0:11:40.880 be played in Tampa on Sunday. John Stash that were 0:11:40.880 --> 0:11:44.440 Bloomberg Sports Nathan all Right, John, thank you. SMP futures 0:11:44.520 --> 0:11:46.679 right now are up thirty three point. Stown futures down 0:11:46.679 --> 0:11:48.960 two to twenty are up two to twenty four. They 0:11:48.960 --> 0:11:52.080 are higher this morning, and NASTAC futures are on the 0:11:52.200 --> 0:11:56.320 rise by night points. We check in next with St. Dwack, 0:11:56.520 --> 0:12:00.080 chief investment officer at Flow Bank, looking ahead to the 0:12:00.120 --> 0:12:04.240 fourth quarter after three straight down quarters this year. This 0:12:04.480 --> 0:12:09.840 is Bloomberg Bloomberg eleven three oh weather mostly cloudy, upper 0:12:09.920 --> 0:12:13.560 sixties today, light rain from Ian moves. In tomorrow we'll 0:12:13.600 --> 0:12:17.400 have a high near sixty five and showers Sunday low sixties. 0:12:17.559 --> 0:12:23.400 Right now fifty three in Central Park markets, headlines and 0:12:23.520 --> 0:12:26.800 breaking news twenty four hours a day at Bloomberg dot Com, 0:12:26.920 --> 0:12:30.520 The Bloomberg Business at and at Bloomberg Quick Takes a 0:12:30.559 --> 0:12:40.079 Bloomberg Business Lash and I'm Karen Moscow. The updates brought 0:12:40.080 --> 0:12:42.719 to you by s E. I said managers don't get 0:12:42.760 --> 0:12:44.880 results that are off the charts when their solutions are 0:12:44.920 --> 0:12:48.280 off the shelf. Learn how sei is operating platform can 0:12:48.320 --> 0:12:52.120 turn infrastructure into a competitive advantage at sei C dot Com. 0:12:52.200 --> 0:12:56.640 Slash Tech European stocks rising with government bonds signaling a 0:12:56.679 --> 0:12:59.920 potential recovery at the end of a tumultuous week in market. 0:13:00.440 --> 0:13:03.920 US DOCK index futures are also gaining following another bruising 0:13:03.960 --> 0:13:06.880 session on Wall Street that took the SMP five hundred 0:13:06.880 --> 0:13:09.360 down two percent of the lowest in almost two years, 0:13:09.640 --> 0:13:12.520 and send the tech heavy NASDAC tumbling almost four percent. 0:13:12.720 --> 0:13:15.320 We checked the markets every fifteen minutes throughout the trading day. 0:13:15.440 --> 0:13:18.760 On Bloomberg, SNP futures of twenty eight points this morning, 0:13:18.800 --> 0:13:21.320 down futures of a hundred eighty three and now stack 0:13:21.360 --> 0:13:24.880 futures of eight two. The decks in Germany is up 0:13:25.000 --> 0:13:28.079 one percent. Ten year treasury up eighteen thirty seconds, you know, 0:13:28.120 --> 0:13:30.839 three point seven one percent yield on the two year 0:13:30.920 --> 0:13:34.320 four point one six percent, nine x screwed oils at 0:13:34.360 --> 0:13:36.720 one point four percent, up a dollar seventeen at eighty 0:13:36.720 --> 0:13:39.560 two dollars forty cents of barrel comes gold up six 0:13:39.559 --> 0:13:42.320 tenths percent or ten dollars eighty cents at sixteen seventy 0:13:42.400 --> 0:13:45.920 nine thirty announced the euro point nine two five against 0:13:45.920 --> 0:13:48.480 the dollar. British found one point one one seven five 0:13:48.760 --> 0:13:51.560 they had one forty four point to eight and Bitcoin 0:13:51.679 --> 0:13:54.200 this morning of a third of u percent at nineteen thousand, 0:13:54.520 --> 0:13:57.680 five hundred dollars. That's a bloomberg business flash. Now here's 0:13:57.679 --> 0:14:00.120 Michael Barr with more on what's going on around there. 0:14:01.240 --> 0:14:04.320 Good morning, Karen Ian. Now, a hurricane again is threatening 0:14:04.360 --> 0:14:07.560 to carve a new path of destruction through South Carolina 0:14:07.640 --> 0:14:10.120 today and when it roars a short north of Charleston, 0:14:10.520 --> 0:14:13.000 forecasters say the storm will drive a surge of water 0:14:13.080 --> 0:14:16.720 into the city of three to six feet. Government officials say, 0:14:16.840 --> 0:14:21.720 Russian President Vladimir Putin will officially annex four occupied regions 0:14:21.720 --> 0:14:26.200 of Ukraine totally percent of Ukraine's territory. At a formal 0:14:26.320 --> 0:14:30.200 signing ceremony today, the U N Secretary General will condemn 0:14:30.320 --> 0:14:33.880 Russia's action, saying it has no legal value, it must 0:14:33.880 --> 0:14:37.760 not be accepted. In baseball, the Yankees host the Orioles Tonight, 0:14:37.840 --> 0:14:40.960 Aaron Judge will go for sixty two Homer's passing Roger 0:14:41.000 --> 0:14:44.320 Merras's a L record. Last night, the Red Sox beat 0:14:44.360 --> 0:14:47.080 the Orioles five three. The A's lost the Giants. One 0:14:47.360 --> 0:14:51.680 Thursday Night football, the Bengals beat the Dolphins. Global news 0:14:51.720 --> 0:14:54.840 twenty four hours a day on air and on Bloomberg Quicktake, 0:14:55.000 --> 0:14:58.280 powered by more than journalists analysts more than a hundred 0:14:58.280 --> 0:15:02.160 twenty countries. Michael Bard is Bloomberg. Michael, thank you. It's 0:15:02.200 --> 0:15:04.920 five twenty on Wall Street Live from the Bloomberg Interacted 0:15:04.960 --> 0:15:08.520 Broker Studios. This is Bloomberg Daybreak, as we get ready 0:15:08.560 --> 0:15:11.680 to close the books on another rough quarter for equities. 0:15:11.720 --> 0:15:15.440 Were joined this morning by st. Dwack, chief investment Officer 0:15:15.560 --> 0:15:18.920 at Flow Bank. STI. Good morning. We're seeing some relief 0:15:19.000 --> 0:15:22.440 going on in futures this morning, but we've seen one 0:15:22.520 --> 0:15:25.720 point three trillion dollars in value white from the SMP 0:15:25.880 --> 0:15:31.160 five hundred this quarter. How much further could this bearishness go? 0:15:31.160 --> 0:15:34.200 Good morning, Well, that that is the question on everyone's mind. 0:15:34.320 --> 0:15:37.360 I think there is still room to go as we 0:15:37.400 --> 0:15:40.680 continue to get some bad news or some bad surprises, 0:15:40.760 --> 0:15:44.560 including from a couple of companies ahead of the earning season. 0:15:45.360 --> 0:15:48.560 But at the same time markets have become so negative. 0:15:48.640 --> 0:15:52.480 Sentiment is so bearished, positioning is very light, cash levels 0:15:52.480 --> 0:15:55.600 are high. I think the downside is starting to become 0:15:55.600 --> 0:15:59.080 more limited. Now are you looking for a bottom pretty soon? 0:15:59.120 --> 0:16:02.640 Then where would that to be for you? Well, so 0:16:02.800 --> 0:16:05.560 the level is is tricky at this point. We've seen 0:16:05.600 --> 0:16:08.960 some very big move in moves in markets just throughout 0:16:09.000 --> 0:16:11.400 the day right so to this morning's future is could 0:16:12.160 --> 0:16:15.040 very easily reverse later. But I think at some point 0:16:15.080 --> 0:16:17.360 in October we're going to start to see a reversal 0:16:17.360 --> 0:16:20.360 and risk assets. It will take time and it probably 0:16:20.400 --> 0:16:22.800 won't be in a straight line, but I think we 0:16:22.880 --> 0:16:25.480 are going to have a better better performance into the 0:16:25.560 --> 0:16:29.040 end of the year. Despite the FED continuing to hammer 0:16:29.080 --> 0:16:32.160 the drum for higher for longer interest rates, you think 0:16:32.440 --> 0:16:35.720 we could start to see a little bit more of 0:16:35.880 --> 0:16:40.360 positive sentiment move in. Despite that, I think the market 0:16:40.520 --> 0:16:43.760 knows that higher for longer is staying that there won't 0:16:43.800 --> 0:16:46.600 be a Fed pivot even if growth starts to weaken. 0:16:47.320 --> 0:16:50.960 But you're getting continued signs of disinflation and I think 0:16:51.000 --> 0:16:52.880 that is going to continue, and that's going to help 0:16:52.960 --> 0:16:55.520 alleviate some of the market fears that the FED doesn't 0:16:55.520 --> 0:16:58.200 have to be more aggressive than what they've laid out 0:16:58.280 --> 0:17:01.800 right now. And at some went within the next sort 0:17:01.840 --> 0:17:03.600 of month and a half or something, once we get 0:17:03.600 --> 0:17:07.520 to that November meeting will have hiked over four UM 0:17:07.560 --> 0:17:10.400 in just you know, six or nine months. The Fed 0:17:10.600 --> 0:17:12.680 knows that there is a lag effect, and it might 0:17:12.720 --> 0:17:15.160 give it a little bit of time, so we might 0:17:15.200 --> 0:17:18.640 be closer to something, maybe not a pause and normalization 0:17:18.680 --> 0:17:20.560 in the rates or a few smaller rates to come, 0:17:20.600 --> 0:17:23.320 but the bulk should soon be behind us, and I 0:17:23.320 --> 0:17:25.480 think that's going to help markets as well. So where 0:17:25.480 --> 0:17:28.040 are you going to look for opportunity? Then if we 0:17:28.200 --> 0:17:33.680 start to see interest rates level off at least, where 0:17:33.760 --> 0:17:38.000 is the opportunity, Well, we're looking to gradually add back 0:17:38.000 --> 0:17:41.200 to equity markets, um and again this is going to 0:17:41.320 --> 0:17:43.840 take a bit of time. For now, it really still 0:17:43.960 --> 0:17:48.200 is all about cash. But within equities, I think tech 0:17:48.400 --> 0:17:50.879 should do well at the next earning season. I think 0:17:50.920 --> 0:17:53.080 they'll prove to be more or the majority of the 0:17:53.080 --> 0:17:56.400 company's will prove to be more resilient, and I think 0:17:56.440 --> 0:17:59.560 that will help lead the market higher. How do you 0:17:59.600 --> 0:18:02.680 see shaking out overall? We've had a lot of earnings 0:18:02.720 --> 0:18:05.600 down grades up to this point. We've gotten yet more 0:18:05.680 --> 0:18:10.040 news from meta platforms about job cuts, Nike coming in 0:18:10.119 --> 0:18:15.200 with some negative readings as well. Is there further downgrades 0:18:15.320 --> 0:18:18.320 in store or could we see companies start to position 0:18:18.359 --> 0:18:22.000 themselves a little more positively. I don't think we're gonna 0:18:22.040 --> 0:18:25.000 see a lot of more positive What we're seeing is 0:18:25.040 --> 0:18:29.080 that in general, end demand hasn't softened so much. It's 0:18:29.080 --> 0:18:32.240 a lot. I mean, it's margins for Nike, UH defects 0:18:32.280 --> 0:18:34.360 revenue obviously they didn't count it so much, but that's 0:18:34.359 --> 0:18:38.720 not helping UH very often. You've still seen that sort 0:18:38.720 --> 0:18:41.760 of consumption hold up a little bit. And some of 0:18:41.800 --> 0:18:44.480 these job openings or job cuts are feeding right into 0:18:44.520 --> 0:18:47.280 what the Fed wants to hear, right, um, so, so 0:18:47.320 --> 0:18:49.119 that's going to be a little helpful. But I do 0:18:49.240 --> 0:18:52.240 think the market is prepared for bad news and is 0:18:52.320 --> 0:18:54.320 starting to price in quite a bit of bad news 0:18:54.320 --> 0:18:56.560 from the earning season. We'll see if we get a 0:18:56.560 --> 0:18:59.600 couple of big surprises that are much worse than expected. 0:19:00.000 --> 0:19:02.760 But I wouldn't expect too much of much better than expected. 0:19:02.800 --> 0:19:07.040 Maybe just the market thinking not worse than expected. Just 0:19:07.080 --> 0:19:09.440 about thirty seconds left here, Steve. But when it comes 0:19:09.480 --> 0:19:13.160 to bad news, what's you're feeling on whether we could 0:19:13.240 --> 0:19:15.760 be in for a recession, whether it could be a 0:19:15.800 --> 0:19:19.800 long lasting recession. What's your call on that for now? 0:19:19.960 --> 0:19:22.200 I mean, I think we're going to have some kind 0:19:22.240 --> 0:19:25.200 of slowdown, or as in a protracted slowdown. I don't 0:19:25.200 --> 0:19:26.840 know how deep it's going to be. I think we 0:19:26.880 --> 0:19:31.240 can hover close to zero or below UM and then 0:19:31.359 --> 0:19:33.960 recover at some point next year. But I'm not in 0:19:34.000 --> 0:19:37.199 the deep procession camp today. Thanks est, great having you 0:19:37.200 --> 0:19:39.760 on with us this morning. S D. Dwack, chief investment 0:19:39.840 --> 0:19:44.359 Officer at Flow Bank. As we watch futures rise just 0:19:44.480 --> 0:19:47.200 a bit, SMP futures are up twenty five point, STAFF 0:19:47.200 --> 0:19:49.960 futures up a hundred seventy four, and NASTAC futures a 0:19:50.000 --> 0:19:52.760 gain of sixty nine points. The tenure treasury is up 0:19:52.840 --> 0:19:56.440 eighteen thirty seconds, yield three point seven one per cent 0:19:57.000 --> 0:19:59.440 and yield on the two year Right now four point 0:19:59.480 --> 0:20:08.200 one five. You're listening to Bloomberg Daybreak Bloomberg eleven three 0:20:08.200 --> 0:20:11.119 oh weather mostly cloudy, upper sixties today, light rain for me, 0:20:11.160 --> 0:20:13.840 and moves in tomorrow. We'll get into the mid sixties. 0:20:14.160 --> 0:20:17.840 Showers for Sunday, low sixties for highs Right now fifty 0:20:17.920 --> 0:20:24.919 three in Central Park, broadcasting live from the Bloomberg Interactive 0:20:24.920 --> 0:20:28.800 Broker Studio in New York. Bloomberg E Living Freedom to Washington, 0:20:28.880 --> 0:20:33.000 d C. Bloomberg to Boston, Bloomberg one O six one 0:20:33.080 --> 0:20:36.560 to San Francisco, Bloomberg nine sixty to the Country, Sirius 0:20:36.680 --> 0:20:39.280 XM to the one nineteen and around the globe the 0:20:39.320 --> 0:20:43.199 Bloomberg Business app and Bloomberg Radio dot Com. This is 0:20:43.240 --> 0:20:52.399 Bloomberg Daybreak and it's five thirty on Wall Street. Good morning. 0:20:52.400 --> 0:20:55.359 I'm Karen Moscow, I'm Nathan Hagar. We're about four hours 0:20:55.359 --> 0:20:57.320 away from the open of US trading. Let's get you 0:20:57.359 --> 0:20:58.639 up to date on the news you need to know 0:20:58.800 --> 0:21:01.280 at this hour. Her kane Ian is due for a 0:21:01.320 --> 0:21:05.080 second landfall today north of Charleston, South Carolina. President Biden's 0:21:05.119 --> 0:21:08.639 declared an emergency for the entire state. South Carolina. Governor 0:21:08.640 --> 0:21:12.480 Henry McMaster's urging residents to get ready, Call your family, 0:21:12.600 --> 0:21:14.920 call your love once, tell them where you're gonna be. 0:21:15.920 --> 0:21:17.960 Let let them know that so they won't be worrying 0:21:18.000 --> 0:21:21.159 about you. Meantime, the cleanup and recovery in Florida is 0:21:21.200 --> 0:21:24.000 just getting started. At Governor Rhonda Santa says first responders 0:21:24.040 --> 0:21:27.680 have performed more than seven hundred rescues. There's not been 0:21:27.880 --> 0:21:32.080 in these rescue efforts, um you know, decease people found 0:21:32.359 --> 0:21:35.200 as of yet. Now that may change, of course. Governor 0:21:35.280 --> 0:21:39.280 just Santa says power outages in southwest Florida could be lengthy. Well. 0:21:39.520 --> 0:21:42.040 So the markets, Nathan us futures are higher as we 0:21:42.080 --> 0:21:44.240 close out the trading week. Yesterday, the S and P 0:21:44.400 --> 0:21:47.479 five abready closed it at twenty two month low. Joanne Pheeney, 0:21:47.560 --> 0:21:50.879 as a portfolio manager at Advisor's Capital Management, you have 0:21:50.920 --> 0:21:53.119 to look back at history and recognize that the market 0:21:53.119 --> 0:21:55.560 sells off the most right, but tend to tend to 0:21:55.600 --> 0:21:58.240 do that before recessions begin, and they tend to recover 0:21:58.560 --> 0:22:01.320 before we even know officially we've had a recession. And 0:22:01.400 --> 0:22:04.240 so for a long enough term investor one a year, 0:22:04.359 --> 0:22:07.400