WEBVTT - Bloomberg Daybreak: October 3, 2022 - Hour 2 (Radio) 0:00:01.120 --> 0:00:04.400 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:04.440 --> 0:00:08.360 Daybreak for Monday, October two. Coming up this hour, and 0:00:08.440 --> 0:00:11.680 about face, the UK drops a plan to cut taxes 0:00:11.760 --> 0:00:14.040 for the highest earners. We are live in Europe with 0:00:14.080 --> 0:00:17.439 the latest. The fourth quarter begins following three straight quarters 0:00:17.440 --> 0:00:20.640 of loves is for US stocks, Credit Sweet shares hit 0:00:20.640 --> 0:00:23.720 a record low, and Tesla shares drop after missing third 0:00:23.800 --> 0:00:27.400 quarter delivery estimates. Rescue cruise in Florida continue to search 0:00:27.440 --> 0:00:30.040 for people who decided to ride out hurricane and Plus 0:00:30.080 --> 0:00:33.600 Brazil's presidential elections headed for a runoff vote on Michel 0:00:33.640 --> 0:00:36.320 bar More Ahead, I'm John stans Shallon sports, the Mets 0:00:36.360 --> 0:00:39.280 appear headed for a second place finished after getting swept 0:00:39.280 --> 0:00:42.280 in Atlanta, the Yankees lost wins for the Jets, and John, 0:00:44.520 --> 0:00:48.720 that's all stradyhead on Bloomberg day Break on Bloomberg eleven three, 0:00:48.720 --> 0:00:51.960 on New York Bloomberg nineteen nine one, Washington, d C 0:00:52.440 --> 0:00:56.000 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.080 --> 0:00:59.920 Francisco Sirius x M one nineteen and around the world 0:01:00.000 --> 0:01:03.080 Old on Bloomberg Radio dot Com and via the Bloomberg 0:01:03.080 --> 0:01:10.320 Business Good morning. I'm Nathan Hagart and I'm Karen. Moscow 0:01:10.440 --> 0:01:13.200 and US dock indise futures are mixed this morning. We 0:01:13.319 --> 0:01:15.800 check the markets every fifteen minutes throughout the trading day. 0:01:15.880 --> 0:01:17.880 On Bloomberg we're coming up to six o one on 0:01:17.920 --> 0:01:20.360 Wall Street. S and P futures at four point staff 0:01:20.360 --> 0:01:23.520 futures of nine d Announceday futures lower down thirty two. 0:01:23.800 --> 0:01:26.440 Can your treasury up twelve thirty seconds? You know, three 0:01:26.480 --> 0:01:29.160 point seven seven percent and the yield on a two 0:01:29.240 --> 0:01:33.080 year four point one nine percent and the British pound 0:01:33.080 --> 0:01:36.000 at one point one eight three against the dollar. Nathan, Yeah, 0:01:36.120 --> 0:01:38.679 interesting you mentioned the pound, Karen bag We begin in 0:01:38.760 --> 0:01:41.000 the UK this morning, where there's been an about face 0:01:41.080 --> 0:01:43.959 from the government. Prime Minister Liz trust is dropping her 0:01:44.000 --> 0:01:47.319 controversial plan to cut taxes for high earners. Let's get 0:01:47.319 --> 0:01:49.440 the Birmingham, England get the latest with Bloomberg day Break. 0:01:49.440 --> 0:01:52.559 Europe Banker Caroline heafgerg Good morning, Caroline, Good morning, Nathan 0:01:52.600 --> 0:01:55.360 and Karen. The Chancellor Quasi Quality has said that he 0:01:55.440 --> 0:01:58.360 has listened and is reversing the plan to scrap the 0:01:58.400 --> 0:02:01.040 top right a tax in the UK, a announced as 0:02:01.120 --> 0:02:04.160 part of a mini budget ten days ago, which prompted 0:02:04.200 --> 0:02:07.640 a market route. The U turn, despite the denial by 0:02:07.680 --> 0:02:11.079 the Prime Minister up until yesterday, was driven by Tory 0:02:11.320 --> 0:02:15.400 MPs unhappy with the policy as the Conservatives plunged in 0:02:15.440 --> 0:02:19.280 the polls. Sterling and UK guilts have reacted positively to 0:02:19.360 --> 0:02:22.120 the reversal and money markets are paired Bank of England 0:02:22.240 --> 0:02:25.720 rate hike bets, but it is a major embarrassment for 0:02:25.800 --> 0:02:29.360 Trust and Quarting less than a month into office. The 0:02:29.480 --> 0:02:33.400 mood from MPs, including from Mike Wood, is still positive. 0:02:33.760 --> 0:02:37.240 Quieteying told media here in Birmingham at the party's annual 0:02:37.240 --> 0:02:41.360 conference that he's not considering resigning. Instead, he's focused on 0:02:41.480 --> 0:02:45.040 delivering growth. He gives his main conference speech at four 0:02:45.080 --> 0:02:49.079 pm UK time today in Birmingham. I'm Caroline Head good 0:02:49.080 --> 0:02:51.959 Blue Bug day bake Caroline, thank you. In the pound 0:02:52.080 --> 0:02:55.720 has been strengthening on the news again, Sterling at one 0:02:55.720 --> 0:02:58.840 point one one seven five against Sadala or elsewhere in 0:02:58.880 --> 0:03:01.280 the market today. Off the start of the fourth quarter, 0:03:01.800 --> 0:03:04.919 US stocks coming off their third straight quarter of losses 0:03:04.919 --> 0:03:07.079 for the first time since two thousand nine. For the 0:03:07.160 --> 0:03:10.120 NASDAC one hundred. It's the longest losing streak in twenty years, 0:03:10.120 --> 0:03:13.400 and David Bianco, as chief investment officer at DWS Group, 0:03:13.680 --> 0:03:15.280 this is a bear market. So I think a key 0:03:15.360 --> 0:03:18.720 question is is this the beginning of a high inflationary 0:03:18.760 --> 0:03:21.920 period where we're near the end of a high inflationary period. 0:03:22.120 --> 0:03:23.639 If you think we're near the end of a high 0:03:23.680 --> 0:03:27.960 inflationary period, the worst is largely behind and the market 0:03:28.000 --> 0:03:30.680 shouldn't go too much further down. But that's the key question. 0:03:31.000 --> 0:03:33.760 The w S Chief investment Officer David Bianco made the 0:03:33.760 --> 0:03:36.960 comments on Bloomberg's Wall Street. We catch the program every 0:03:37.000 --> 0:03:40.280 weekend on Bloomberg Radio and television. One of all streets 0:03:40.320 --> 0:03:43.960 biggest bears is staying bearish Karen Morgan Stanley chief US 0:03:44.040 --> 0:03:47.080 equity strategist Mike Wilson says a FED pivot is becoming 0:03:47.120 --> 0:03:49.800 likely as money supply falls, but he says that move 0:03:49.840 --> 0:03:53.080 won't allay concerns about earnings. Wilson sees an eventual low 0:03:53.160 --> 0:03:55.400 for the SMP five hundred coming later this year or 0:03:55.440 --> 0:03:57.920 early next at the three thousand to thirty four hundred 0:03:57.960 --> 0:04:01.160 point level. Uncle Man Sax is all so staying parish. 0:04:01.240 --> 0:04:03.760 Nathan with a call that more stocks selling will take 0:04:03.800 --> 0:04:07.760 place next year. Goldman strategists say households and foreigners could 0:04:07.760 --> 0:04:10.720 each sell US stocks valued at a hundred billion dollars 0:04:10.720 --> 0:04:14.560 in three In corporate news this morning, Karen're watching shares 0:04:14.600 --> 0:04:16.840 of Credit Swee after they hit a record low. Right now, 0:04:16.839 --> 0:04:19.600 they're down nearly eight per cent, a memo sent by 0:04:19.720 --> 0:04:22.440 CEO l Rick Kerner's raising concerns over the health of 0:04:22.480 --> 0:04:25.360 the Swiss bank. We get more from Bloomberg's Charlie Wells 0:04:25.400 --> 0:04:28.360 in London coroner basically said the banks at a critical moment. 0:04:28.720 --> 0:04:32.520 He reiterated, you know the importance of not confusing share price, 0:04:32.520 --> 0:04:34.480 which we've been hearing a lot about this morning, with 0:04:34.839 --> 0:04:38.080 performance and capital strength. And the reason why this generated 0:04:38.080 --> 0:04:40.480 so much attention was because it was the second straight 0:04:40.560 --> 0:04:43.479 memo that the CEO had to send um on a 0:04:43.520 --> 0:04:47.080 Friday in two weeks, and it also, interestingly over the weekend, 0:04:47.120 --> 0:04:51.359 generated a lot of discussion on online boards like Reddit 0:04:51.440 --> 0:04:54.599 and Twitter. Bloomberg's Charlie Wells has Credit Sweez is currently 0:04:54.600 --> 0:04:57.920 finalizing turned around plans. Those will likely include sweeping changes 0:04:57.960 --> 0:05:00.640 to its investment bank and thousands of jobs over the 0:05:00.680 --> 0:05:03.800 coming years. Well Nathan Shares of Tesla are down more 0:05:03.839 --> 0:05:06.440 than four percent in early trading. The company delivered a 0:05:06.480 --> 0:05:08.719 record number of vehicles in the last quarter, but the 0:05:08.760 --> 0:05:11.720 results still missed estimates. We get more from Bloomberg's and 0:05:11.800 --> 0:05:16.080 East Fella Greeny Tesla delivering more than three three thousand vehicles, 0:05:16.240 --> 0:05:20.120 about four percent fewer than expected, possibly on supply chain issues. 0:05:20.320 --> 0:05:24.880 The expenses to get customers actual cars in their hands 0:05:25.000 --> 0:05:28.320 have been astronomical DNA I've spanaging director at web Bush, 0:05:28.480 --> 0:05:32.960 has has started to balance that and basically be fine 0:05:33.120 --> 0:05:36.200 with ultimate deliveries that could push quarter quarters. I've says 0:05:36.279 --> 0:05:39.719 that means watch this quarter very closely. Elon Musk tweeting 0:05:39.800 --> 0:05:42.520 he helps to smooth out end of quarter. Russia's for 0:05:42.600 --> 0:05:46.559 customers sakes, Denise, Fella Greeny, Bloomberg day Break, Okay, Denise, thanks. 0:05:46.560 --> 0:05:48.960 Oil is on the rise this morning. There are indications 0:05:48.960 --> 0:05:51.880 Ope could slash production by more than a million barrels 0:05:51.880 --> 0:05:54.599 a day to revive plunging prices. The group meets this 0:05:54.680 --> 0:05:58.160 Wednesday in Vienna, checking prices Downnimex crews up four point 0:05:58.160 --> 0:06:00.479 four percent or three dollars forty eight cent SAT eighty 0:06:00.520 --> 0:06:03.240 two dollars nine cents of barrel Brent is higher by 0:06:03.279 --> 0:06:06.880 four point two at eighty eight dollars seventy two cents. Well, Nathan, 0:06:06.920 --> 0:06:09.600 the big economic event of this week comes on Friday, 0:06:09.680 --> 0:06:12.520 when the US Labor Department issues it's monthly payrolls. Your 0:06:12.560 --> 0:06:15.880 poored and John. Growth likely continued in September, even as 0:06:15.920 --> 0:06:18.760 the overall economic out looked dimmed. Be get more from 0:06:18.760 --> 0:06:22.640 Bloomberg's Jude. The Federal Reserve is lifting interest rates to 0:06:22.720 --> 0:06:26.599 tame inflation by applying the breaks the economic growth. Even so, 0:06:26.839 --> 0:06:30.160 US jobless claims have been running near historic glows, and 0:06:30.279 --> 0:06:33.839 economists are forecasting employers hired about a quarter million workers 0:06:33.839 --> 0:06:37.560 in September. We'll get the data Friday. Looking ahead, the 0:06:37.600 --> 0:06:40.440 president of the Chicago fet Charles Evans, this will take 0:06:40.480 --> 0:06:43.240 six months for the impact of higher interest rates to 0:06:43.320 --> 0:06:45.880 be felt in the labor market. Also on this week's 0:06:45.960 --> 0:06:49.359 data calendar, figures on job openings, which have been running 0:06:49.360 --> 0:06:53.640 at historic hives. Then he dealt Jdics Bloomberg depery. All right, Anny, thanks. Finally, 0:06:53.640 --> 0:06:56.240 we take stock of the damage from Hurricane Ian. The 0:06:56.279 --> 0:06:59.400 storm destroyed a countless number of homes and businesses in Florida, 0:06:59.600 --> 0:07:02.720 but it's gir did a key US fertilizer production area 0:07:02.720 --> 0:07:04.479 in the state, and that means the broader U S 0:07:04.520 --> 0:07:07.919 economy was spared the worst case scenario. Still Ian is 0:07:07.960 --> 0:07:10.440 said to be one of the top ten costliest storms 0:07:10.440 --> 0:07:12.560 in the US, with estimates running as high as a 0:07:12.640 --> 0:07:16.920 hundred twenty billion dollars. Straight ahead your latest local headlines 0:07:16.960 --> 0:07:23.440 in the check of sports. This is Bloomberg and it's 0:07:23.440 --> 0:07:25.720 now six oh seven on Wall Street, word forty nine 0:07:25.760 --> 0:07:28.240 degrees in Central Park. We're back in business on the 0:07:28.280 --> 0:07:32.239 New Jersey Transit North Jersey Coastline. More coming up in traffic. First, 0:07:32.240 --> 0:07:33.920 Michael Barr with what else is going on in New 0:07:34.000 --> 0:07:36.000 York and around the world. Good morning, Mike Call, Good 0:07:36.000 --> 0:07:38.760 morning Nathan Awake for murdered f D n Y E 0:07:38.880 --> 0:07:42.680 M S Lieutenant will take place today and tomorrow, family, 0:07:42.800 --> 0:07:45.360 friends and co workers. I'm gonna gathering to remember Alison 0:07:45.440 --> 0:07:48.720 Russo Elling, who was six one. She was stabbed depth 0:07:48.760 --> 0:07:52.280 in an unprovoked attack. In a story of Queen's last week, 0:07:52.560 --> 0:07:55.760 police arrested thirty four euro Peter Sasopolis, who has a 0:07:55.840 --> 0:07:59.560 history of mental illness. Search and rescue efforts are still 0:07:59.600 --> 0:08:02.120 underway in parts of Florida. In the wake of Hurricane Ian. 0:08:02.560 --> 0:08:05.239 Over the weekend, responders took to the air, grabbing people 0:08:05.320 --> 0:08:09.920 from rooftops and evacuating Barrier Island residents by boat after 0:08:10.040 --> 0:08:13.480 Ian wiped away roads leading to the mainland. Florida Governor 0:08:13.520 --> 0:08:16.720 Around Desantists said teams are conducting sweeps and areas hit 0:08:16.720 --> 0:08:20.640 hardest by the storm. There's more urban search and rescue 0:08:20.680 --> 0:08:24.960 teams in Florida now than in any one place in 0:08:25.000 --> 0:08:28.800 American history since September eleven. Governor de Santist called for 0:08:28.960 --> 0:08:32.520 Ian to be a five hundred year event that will 0:08:32.559 --> 0:08:36.800 go down in history. Meanwhile, President Biden will visit Puerto Rico, 0:08:37.120 --> 0:08:41.720 hit hard by Hurricane Fiona. Brazilian President Jayre Bolsonaro fought 0:08:41.760 --> 0:08:44.920 his way to a runoff election against his leftist challengeer, 0:08:45.000 --> 0:08:48.600 former President Louis and Natio Lula da Silva. Lula got 0:08:48.640 --> 0:08:51.960 forty eight percent, while Bolsonaro received forty three percent. However, 0:08:52.320 --> 0:08:55.840 neither one got the simple majority needed for victory. These 0:08:55.880 --> 0:08:58.880 college students say they voted for Lula. I voted to Lula. 0:08:59.000 --> 0:09:05.600 To you the woods in the future is opposed to democracy. 0:09:05.920 --> 0:09:08.160 The candidates will face each other in the high stakes 0:09:08.200 --> 0:09:12.679 October thirty presidential runoff. It's a big defeat from Moscow 0:09:12.720 --> 0:09:16.440 and Ukraine. Last week, Russian President Vladimir Putin used the 0:09:16.480 --> 0:09:19.719 sham referendum to declare four areas of Ukraine as part 0:09:19.760 --> 0:09:23.400 of Russia. But one of those regions, Laman, almost immediately 0:09:23.440 --> 0:09:27.720 fell to Ukrainian forces. Meanwhile, Vladimir Putin is doomed to 0:09:27.800 --> 0:09:31.480 lose the war in Ukraine. That's from former CIA director 0:09:31.559 --> 0:09:35.240 David Petreas. The retired four star general says Russia's army 0:09:35.440 --> 0:09:38.720 is quote shambolic. He announced the annexation and he's already 0:09:38.760 --> 0:09:42.160 lost a really critical element in that a critical city 0:09:42.200 --> 0:09:44.480 that would have been a very key supply hub had 0:09:44.480 --> 0:09:46.880 they been able to go farther. And that's just going 0:09:46.920 --> 0:09:50.079 to continue. He's going to continue to lose on the battlefield. 0:09:50.160 --> 0:09:52.760 Petrea spoke on ABC's This Week, which can be heard 0:09:52.840 --> 0:09:56.600 Sundays on Bloomberg Global News twenty four hours a day 0:09:56.640 --> 0:09:59.240 on air and on Bloomberg Quickdake, powered by more than 0:10:00.000 --> 0:10:02.920 the journalist mentalist in more than a hundred twenty countries. 0:10:02.960 --> 0:10:05.520 I'm Michael Barr. This is Bloomberg Naked. Thank you, Michael. 0:10:10.040 --> 0:10:12.160 Almost six cent on Wall Street Time for the Bloomberg 0:10:12.200 --> 0:10:15.000 Sports Update with John s rx Dathan. Mets have been 0:10:15.000 --> 0:10:17.800 a first place team virtually the entire season, but after 0:10:17.840 --> 0:10:20.560 a nightmare weekend in Atlanta, they're almost certainly going to 0:10:20.600 --> 0:10:24.000 finish second. The Braves one again, Dan's by Swanson homer 0:10:24.080 --> 0:10:26.199 for the third straight game, x Mett Travis Dardeau a 0:10:26.280 --> 0:10:29.720 two one single. Atlanta won five three to sweep the series. 0:10:29.760 --> 0:10:32.640 The Braves lead by to and on the tidebreaker. A 0:10:32.720 --> 0:10:35.600 win tonight clinches them the division. The Mets thought they'd 0:10:35.640 --> 0:10:38.520 be the NLS two seed, instead looking like the four 0:10:38.600 --> 0:10:41.160 and hitting for a best of three wild Cards series 0:10:41.160 --> 0:10:44.320 with San Diego or Philadelphia this weekend. All the games 0:10:44.320 --> 0:10:46.920 in the series would be at Sydney Field at the Stadium. 0:10:46.960 --> 0:10:49.080 Yankees had just four hits lost to Baltimore three to one. 0:10:49.120 --> 0:10:52.160 Aaron Judge struck out three times. He'll try to surpass 0:10:52.280 --> 0:10:54.760 Roger Morrison the series at Texas at against tonight. The 0:10:54.880 --> 0:10:57.520 Jets finished their four game tour of the a f 0:10:57.600 --> 0:11:00.719 C North two losses, but also to thrillion wins, the 0:11:00.840 --> 0:11:03.400 one in Cleveland and in Pittsburgh. Bay trailed midway through 0:11:03.440 --> 0:11:06.200 the fourth quarter by ten points. Zack Wilson to a 0:11:06.200 --> 0:11:09.400 touchdown pass the Corey Davis and then after a Jets interception, 0:11:10.000 --> 0:11:13.480 Steelers rookie QB Kenny picked Reese Hall scored with sixteen 0:11:13.520 --> 0:11:16.439 seconds left, the Jets one twenty four to twenty. Giants 0:11:16.480 --> 0:11:19.280 and Bears. It met life only two touchdowns scored. All 0:11:19.360 --> 0:11:21.920 day vote by the same guy. Okay Jones is gonna 0:11:21.920 --> 0:11:23.800 foot like I roll lock. He's gonna run it again. 0:11:23.880 --> 0:11:27.880 Kilts to the five. Don't cos in touchdown Giants Daniel 0:11:27.920 --> 0:11:30.720 Jones on a twelve yard run. How the antet prude 0:11:30.720 --> 0:11:33.600 around the left side, his second rushing touchdown of the game, 0:11:33.920 --> 0:11:36.400 and the Giants have widen their lead to thirteen to 0:11:36.480 --> 0:11:38.600 six of the colle Giants went on to win twenty 0:11:38.640 --> 0:11:40.720 to twelve, though Jones left with an ankle injury and 0:11:40.800 --> 0:11:43.840 his backup Tyrod Taylor left with a concussion. Giants had 0:11:43.840 --> 0:11:46.560 their first three and one start since two thousand eleven. 0:11:46.840 --> 0:11:50.120 John stash Award Bloomberg Sports, Nathan Okay, John thanks SMP 0:11:50.280 --> 0:11:52.839 futures are now up five points. Stown futures up a 0:11:52.920 --> 0:11:56.000 hundred two. Nastex futures are still lower, down twenty six points. 0:11:56.000 --> 0:11:59.240 The tenure treasury is up twelve thirty seconds yield three 0:11:59.240 --> 0:12:08.000 point seven seven percent. This is Bloomberg Bloomberg eleven three 0:12:08.000 --> 0:12:10.760 oh weather mostly cloudy, breezy, chance or some showers today 0:12:10.760 --> 0:12:13.199 with a hind your sixty degrees, occasional rain tomorrow with 0:12:13.280 --> 0:12:16.120 a high in your sixty showers will end Wednesday low 0:12:16.240 --> 0:12:23.480 sixties right now fifty in Central Park Markets, headlines and 0:12:23.640 --> 0:12:26.920 breaking news twenty four hours a day at Bloomberg dot Com, 0:12:26.960 --> 0:12:31.680 The Bloomberg Business attend at Bloomberg Quicktap's a Bloomberg Business 0:12:31.800 --> 0:12:40.240 lash and I'm Karen Moscow. This updates brought to you 0:12:40.320 --> 0:12:42.680 by b and My Mellens. Perishing learned by the world's 0:12:42.679 --> 0:12:46.640 most sophisticated wealth management and institutional firms rely on Perishing 0:12:46.679 --> 0:12:50.560 to help them improve profitability, create efficiency, attract talent and 0:12:50.600 --> 0:12:54.480 manage risk at Pershing and dot Com. Global stocks falling 0:12:54.520 --> 0:12:56.800 to a two year low. Well US stock index futures 0:12:56.800 --> 0:13:00.560 are struggling for direction amid concerned hawkish policy spout Global 0:13:00.640 --> 0:13:03.920 central banks will spark a recession and earnings contraction. The 0:13:03.920 --> 0:13:06.040 pound is rising as the UK with drew a plan 0:13:06.120 --> 0:13:09.400 to abolish the top income tax rate. Oil jumping on 0:13:09.440 --> 0:13:12.479 signals that opeg Plus Alliance may offer for a production 0:13:12.559 --> 0:13:15.679 cut and credit sweet groups shares hitting record lows as 0:13:15.720 --> 0:13:18.720 traders continue to speculate about its future. We check the 0:13:18.720 --> 0:13:21.640 markets every fifteen minutes throughout the trading day. On bloomberg 0:13:21.760 --> 0:13:24.000 S and P futures of about four points now down. 0:13:24.080 --> 0:13:27.480 Futures of eighty nine NASTAC future is lower, down thirty 0:13:27.760 --> 0:13:30.360 The decks in Germany's down about eight tens of per cent. 0:13:30.440 --> 0:13:33.440 Ten year treasury of twelve thirty seconds three point seven 0:13:33.480 --> 0:13:35.559 eight firstcent. They yield on the two year four point 0:13:35.559 --> 0:13:38.679 one nine percent. Nine. Extrude oil is a four point 0:13:38.679 --> 0:13:40.840 one percent of three dollars twenty six cents at eighty 0:13:40.840 --> 0:13:43.480 two dollars, seventy five cents of barrel co mix school 0:13:43.559 --> 0:13:46.560 little change at sixteen seventy one thirty an ounce. The 0:13:46.640 --> 0:13:49.280 euro point nine seven six eight against the dollar British 0:13:49.280 --> 0:13:51.320 found one point one one nine two and the end 0:13:51.360 --> 0:13:53.800 one forty five point one four. And look at a 0:13:53.840 --> 0:13:56.400 bit coin. It's down almost half percent and nineteen thousand, 0:13:56.480 --> 0:13:59.520 one hundred fifty dollars. That's a Bloomberg business flash. Now 0:13:59.600 --> 0:14:01.520 here's mouth a bar with more on what's going on 0:14:01.640 --> 0:14:04.680 around the world. Cicol. Thank you very much, Karen. President 0:14:04.760 --> 0:14:07.600 Joe Biden will announce more than sixty million dollars in 0:14:07.679 --> 0:14:11.080 funding to strengthen Puerto Rico's resilience to flooding when he 0:14:11.160 --> 0:14:14.559 visits the island to observe recovery efforts from the devastation 0:14:15.000 --> 0:14:18.560 left by Hurricane Fiona. The President and First Lady will 0:14:18.600 --> 0:14:22.640 fly to Puerto Rico today. Sfonte Pabo was awarded the 0:14:22.680 --> 0:14:27.280 Nobel Prize in Physiology or Medicine on Human evolution research. 0:14:27.680 --> 0:14:30.480 In the NFL, the Giants and Jets won, the Patriots, 0:14:30.480 --> 0:14:34.160 Commanders and Ravens lost. The forty Niners play the Rams tonight. 0:14:34.560 --> 0:14:37.360 In baseball, the Yankees lost to the Orioles three one. 0:14:37.720 --> 0:14:41.040 The Mets lost to the Braves five three. Atlanta swept 0:14:41.080 --> 0:14:42.960 the series and knocked the Mets out of the lead. 0:14:43.040 --> 0:14:46.800 In the NL East, the Red Sox and Nationals lost. 0:14:46.840 --> 0:14:50.240 The A's and Giants won. Global news twenty four hours 0:14:50.240 --> 0:14:53.160 a day on air and on Bloomberg Quicktake, powered by 0:14:53.200 --> 0:14:55.480 more than twenty seven hundred journalist and analyst, are more 0:14:55.480 --> 0:14:59.800 than twenty countries. Michael bar this is Bloomberg. Nathan, Okay, Michael, thanks, 0:14:59.800 --> 0:15:02.320 It's just about six twenty on Wall Street Live from 0:15:02.360 --> 0:15:05.880 the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Let's 0:15:05.880 --> 0:15:08.040 get more now on our top story this morning, and 0:15:08.080 --> 0:15:11.360 a dramatic reversal from the new Prime Minister in the UK. 0:15:11.600 --> 0:15:14.320 Liz Trust has dropped a plan to cut taxes for 0:15:14.320 --> 0:15:16.480 the highest earners to try to fend off a growing 0:15:16.520 --> 0:15:19.840 rebellion within her own Conservative party. It's all happening at 0:15:19.840 --> 0:15:23.160 the Tory conference now underway in Birmingham, England. Bloomberg Daybreak 0:15:23.160 --> 0:15:26.280 europe banker Caroline Hefcker is there and joins us live 0:15:26.320 --> 0:15:28.560 with more. Great to speak with you, Caroline, Though not 0:15:28.720 --> 0:15:31.400 so great, I guess for the new Prime Minister and 0:15:31.440 --> 0:15:36.440 her chancellor quasi quartang. They've been publicly promoting this tax 0:15:36.480 --> 0:15:39.280 cut plan right up it seems to the last minute here. 0:15:39.320 --> 0:15:44.400 How big a deal is this reversal now? Absolutely huge? 0:15:44.480 --> 0:15:48.840 It begs the question are in control? They're certainly in office, 0:15:48.920 --> 0:15:52.280 but they are they actually in charge? The U turn 0:15:52.520 --> 0:15:55.520 is surprising because the prime ministers, you say, Liz Trust, 0:15:55.800 --> 0:15:59.440 even up until Sunday was defending uh this tax cut 0:15:59.520 --> 0:16:02.200 for the well fee. They seem though to have neutralized it. 0:16:02.480 --> 0:16:05.600 Quasi quarte and came into the conference hall here in 0:16:05.640 --> 0:16:08.440 Birmingham very early this morning. He did a round of 0:16:08.480 --> 0:16:13.080 media interviews and he backed down. Of course, nobody really 0:16:13.160 --> 0:16:16.400 was particularly in favor of this tax cut for people 0:16:16.440 --> 0:16:19.480 earning over a hundred and fifty thousand pounds down from 0:16:19.560 --> 0:16:23.240 forty five percent to forty percent, so it's sort of 0:16:23.280 --> 0:16:27.600 neutralizes that issue. And yet you know, the markets have 0:16:27.680 --> 0:16:31.120 been on absolute broncho ride in the meantime in terms 0:16:31.120 --> 0:16:35.480 of sterling and guilds, and now the issue is really 0:16:35.520 --> 0:16:39.720 squarely focused on paying for the other budget spending forty 0:16:39.840 --> 0:16:43.520 three billion pounds in total. It's an enormous sum. Is 0:16:43.560 --> 0:16:48.040 that going to happen for austerity cuts to benefit recipients 0:16:48.080 --> 0:16:49.600 here in the UK? Is it all going to be 0:16:49.640 --> 0:16:53.200 done through borrowing? These remain big questions now for the 0:16:53.240 --> 0:16:57.120 rest of these four days of the Annual Party Conference 0:16:57.120 --> 0:16:59.360 here in Birmingham. No, No, You've been speaking with a 0:16:59.440 --> 0:17:02.040 number of men bers of Parliament on the Conservative side. 0:17:02.040 --> 0:17:04.400 What are they saying about some of these issues, whether 0:17:04.400 --> 0:17:07.280 they're going to continue to support unfunded tax cuts and 0:17:07.359 --> 0:17:11.879 the future for the Prime minister. Let's trust well, I 0:17:11.920 --> 0:17:15.440 think uneasy is the word that springs to mind as 0:17:15.520 --> 0:17:19.879 well as conspicus, conspicuous in their absence. So a number 0:17:19.920 --> 0:17:22.680 of well known MPs, including Rishi Sunak and a host 0:17:22.720 --> 0:17:25.560 of his allies and not even coming to conference. But 0:17:25.640 --> 0:17:28.000 I did speak to Mike Wood at the MP for 0:17:28.119 --> 0:17:32.080 Dudley South. He's a regular on Bloomberg Radio and he's lovely, 0:17:32.119 --> 0:17:35.119 but he was sounding really pretty nervous. There is a 0:17:35.160 --> 0:17:40.000 credibility issue that Mike would absolutely recognize. If you you 0:17:40.200 --> 0:17:43.639 turn on what was effectively a budget within ten days, 0:17:43.800 --> 0:17:45.920 insisting that you're not going to do that, and then 0:17:45.960 --> 0:17:50.480 you do what happens with future budgets, will there be credibility? 0:17:50.600 --> 0:17:52.560 And in the meantime, of course, they may have issued 0:17:52.960 --> 0:17:55.600 issued a U turn on this one issue, but mortgage 0:17:55.680 --> 0:17:58.600 rates have already shot up and that is having real 0:17:58.680 --> 0:18:02.600 world consequences in the economy and particularly for people who 0:18:02.640 --> 0:18:06.280 may well be Conservative Party voters. I don't think anyone, 0:18:06.320 --> 0:18:09.560 though Nathan, is saying that liars trials or quasi quassa 0:18:09.600 --> 0:18:12.000 in the chance that are really going to go. Remember, 0:18:12.000 --> 0:18:13.639 we just spent the whole of the summer getting rid 0:18:13.680 --> 0:18:15.960 of Boys Johnson as Prime Minister and bringing in a 0:18:16.040 --> 0:18:20.879 new administration. But the polls show that the opposition Labor 0:18:20.920 --> 0:18:24.560 Party now have a hugely over the Conservatives, and that 0:18:24.600 --> 0:18:26.919 really puts some in peril in the next general election, 0:18:26.960 --> 0:18:30.280 which is what maybe about eighteen months close to two 0:18:30.359 --> 0:18:33.000 years away. Kind about a minute left here, Caroline. You're 0:18:33.000 --> 0:18:34.800 going to be at the conference for the next couple 0:18:34.800 --> 0:18:37.080 of days. Here one are the big questions that need 0:18:37.119 --> 0:18:38.719 to be answered. What are you going to be watching for? 0:18:40.119 --> 0:18:42.760 So this afternoon four pm London time, Quasi Quata is 0:18:42.760 --> 0:18:46.440 going to give his full speech to delegate, So I'm 0:18:46.440 --> 0:18:48.800 going to go and watch that. Of course Liz Trust 0:18:48.840 --> 0:18:50.879 will be up on Wednesday. Remember she's actually gonna be 0:18:50.960 --> 0:18:54.479 given the kind of main event, the main speech on 0:18:54.520 --> 0:18:57.680 a day of national rail strikes. Are people even gonna 0:18:57.680 --> 0:18:59.040 be able to get here if they come just for 0:18:59.160 --> 0:19:02.200 that event? Know? And that highlights it's sort of cost 0:19:02.280 --> 0:19:04.919 of living, the demand for high wages that people have. 0:19:05.440 --> 0:19:08.240 I also just mention one thing. Sterling and guilts have 0:19:08.280 --> 0:19:11.880 reacted fairly positively to the government's utah will that last. 0:19:12.320 --> 0:19:15.399 There is now a lower there are lower bets on 0:19:15.560 --> 0:19:17.439 Great Heights on the Bank of England. But again I 0:19:17.440 --> 0:19:20.720 think it's all ouryes on how markets will see this 0:19:20.880 --> 0:19:24.520 political conference. Nathan, Now you're absolutely right. The pound is 0:19:24.720 --> 0:19:27.480 firming up against the dollar right now at one twelve 0:19:27.480 --> 0:19:31.000 oh two. Bloomberg's Caroline Hebger with us this morning, part 0:19:31.000 --> 0:19:34.199 of our team covering the Conservative Party conference that has 0:19:34.240 --> 0:19:38.480 become very interesting following the tax cut announcement just a 0:19:38.480 --> 0:19:40.680 little more than a week ago from the new UK 0:19:40.800 --> 0:19:44.000 Prime Minister list trust and now this reversal on the 0:19:44.000 --> 0:19:48.440 top tax cut will continue watching it. Stay with Bloomberg 0:19:48.520 --> 0:19:53.440 Radio throughout Right now, SMP futures are up five points. 0:19:53.960 --> 0:19:56.159 Our future is of a hundred one. NASTAT futures are 0:19:56.200 --> 0:19:59.000 still lower by twenty seven points tenk. Your treasury is 0:19:59.080 --> 0:20:02.600 up thirteen thirty seconds Heal three point seven seven. This 0:20:03.000 --> 0:20:09.520 is Bloomberg Bloomberg eleventh three oh Weather mostly cloudie, breezy, 0:20:09.600 --> 0:20:12.160 maybe a shower today, hid your sixty grees. Occasional rain 0:20:12.240 --> 0:20:15.879 tomorrow with high sneer sixty once again showers and Wednesday 0:20:15.920 --> 0:20:18.760 will top out in the low sixties. Right now fifty 0:20:18.880 --> 0:20:25.880 in Central Park, broadcasting live from the Bloomberg Interactive Broker's 0:20:25.880 --> 0:20:29.280 studio in New York. Bloomberg e Living Free on to Washington, 0:20:29.359 --> 0:20:33.639 d C. Bloomberg to Boston, Bloomberg one six one to 0:20:33.720 --> 0:20:37.440 San Francisco, Bloomberg No. Sixty to the country, Sirius XM 0:20:37.520 --> 0:20:39.800 to the one nine team, and around the globe the 0:20:39.800 --> 0:20:43.680 Bloomberg Business apt in Bloomberg Radio dot com. This is 0:20:43.720 --> 0:20:52.200 Bloomberg Daybreak six thirty on Wall Street. Good morning. I'm 0:20:52.280 --> 0:20:55.400 Nathan Hagar and I'm Karen Moscow. We're just about three 0:20:55.440 --> 0:20:57.720 hours away from the open of US trading. Time for 0:20:57.760 --> 0:20:59.520 the five Things that you need to know to start 0:20:59.560 --> 0:21:02.320 your day. Brought to you by Interactive Brokers I b 0:21:02.480 --> 0:21:05.560 k R. Event Trader offers a new way to trade futures. 0:21:05.880 --> 0:21:08.560 Use event contracts to trade your opinion on yes or 0:21:08.560 --> 0:21:12.000 no questions and key CM futures markets. Learn more at 0:21:12.000 --> 0:21:16.080 event trader dot Interactive Brokers dot com. Up First, the 0:21:16.200 --> 0:21:19.359 UK Prime Minister Liz Trust and her administration are dropping 0:21:19.359 --> 0:21:23.840 a controversial tax cut. Chancellor Quas Quarteng had come under 0:21:23.880 --> 0:21:27.320 fire for cutting taxes on the UK's highest earners. Bloomer's 0:21:27.359 --> 0:21:31.720 Lizzie Burden has details from the Tory party's conference in Birmingham. 0:21:31.840 --> 0:21:35.760 He said that the rate cut was becoming a huge 0:21:35.800 --> 0:21:39.040 distraction from a set of strong policies. Of course, the 0:21:39.080 --> 0:21:42.200 government had also announced this massive energy bailout, so it 0:21:42.320 --> 0:21:45.800 was desperately trying to cling back to the political credit 0:21:45.920 --> 0:21:48.919 for that. He was asked what changed, He said, we 0:21:49.080 --> 0:21:51.880 listened to people. We get it. He was asked as 0:21:51.920 --> 0:21:54.920 he considered resigning, He said not at all. The Prime 0:21:54.960 --> 0:21:57.800 Minister had thrown him under a bus yesterday, blamed him 0:21:58.000 --> 0:22:01.719 for this top rate of tax. Say, the question now 0:22:01.920 --> 0:22:04.720 is how much should the rest of the package can survive. 0:22:05.000 --> 0:22:09.240