WEBVTT - Bloomberg Daybreak: November 1, 2022 - Hour 1 (Radio) 0:00:03.360 --> 0:00:06.760 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:06.840 --> 0:00:10.560 day Break for Tuesday, November one, two. Coming up this hour, 0:00:10.720 --> 0:00:13.520 stock teachers rise as we begin a new trading month. 0:00:13.680 --> 0:00:17.440 Can President Biden deliver on promises to impost higher taxes 0:00:17.440 --> 0:00:20.800 on big oil? Says the bank is not for sale. 0:00:20.880 --> 0:00:23.959 We'll talk with the Swisslanders chairman, and the Fed begins 0:00:24.000 --> 0:00:27.520 its two day policy meeting. A salary transparency law takes 0:00:27.520 --> 0:00:30.200 effect today in New York City. Plus God the Supreme 0:00:30.280 --> 0:00:34.840 Court in affirmative action at universities and colleges. I'm Michael Barr. 0:00:34.920 --> 0:00:37.919 More Ahead, I'm John Stave Showard sports much didn't win 0:00:38.040 --> 0:00:40.600 for the Nets, the Browns upset the Bengals. The World 0:00:40.640 --> 0:00:46.440 Series got reined out. That's all. Trade ahead on Bloomberg 0:00:46.479 --> 0:00:51.560 day Break, on Bloomberg Eliving Free on New York, Bloomberg one, Washington, 0:00:51.680 --> 0:00:55.720 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, 0:00:55.800 --> 0:00:59.680 San Francisco, Sirius x AM one nineteen and around the 0:00:59.680 --> 0:01:03.000 world on Bloomberg Radio dot Com and by other Bloomberg 0:01:03.040 --> 0:01:11.000 Business Good Tuesday morning. I'm Any Morris. I'm Nathan Hagar 0:01:11.040 --> 0:01:13.440 futures are moving higher this morning. We're coming up to 0:01:13.520 --> 0:01:15.360 five oh one on Wall Street, and we checked the 0:01:15.360 --> 0:01:17.920 markets every fifteen minutes during the trading day. On Bloomberg, 0:01:18.280 --> 0:01:20.720 SMP futures are up twenty eight points down futures up 0:01:20.720 --> 0:01:23.600 a hundred sixty seven. Nastack futures are higher by a 0:01:23.680 --> 0:01:27.240 hundred two points. Sen Your Treasury is up fifteen thirty seconds. 0:01:27.240 --> 0:01:29.280 The yield three point nine eight percent yield on the 0:01:29.319 --> 0:01:32.399 two year four point for three percent. NIMEX crude is 0:01:32.480 --> 0:01:34.720 up one point three percent this morning at eighty seven 0:01:34.720 --> 0:01:37.880 dollar sixty five cents of barrel Amy Nathan's Dock Center. 0:01:37.959 --> 0:01:40.840 The first day of November moving higher. If history is 0:01:40.880 --> 0:01:44.160 any indication, equities may build on October's gains, which saw 0:01:44.240 --> 0:01:47.880 the SMP five d rise eight percent. Bespoke investment groups 0:01:47.880 --> 0:01:51.040 as the SMP five hundred has registered an average gain 0:01:51.080 --> 0:01:54.360 of eight tenths of a percent in November. Amanda Gotti 0:01:54.480 --> 0:01:57.240 is chief investment officer at p n C Set Management. 0:01:57.480 --> 0:02:00.680 We're still playing a little bit of defense. We're leaning 0:02:01.240 --> 0:02:05.640 US over international, larger over smaller capitalization. We kind of 0:02:05.720 --> 0:02:09.560 neutralize our growth and value bets here um. But with 0:02:09.680 --> 0:02:13.200 valuations following six plus multiple points since the beginning of 0:02:13.200 --> 0:02:15.440 the year, just on the SMP five. You have to 0:02:15.480 --> 0:02:20.280 start getting interested um in opportunities at these levels. The 0:02:20.440 --> 0:02:24.079 n C Asset Managements Amanta Agatti says markets will rally 0:02:24.160 --> 0:02:27.320 if the FED gives a clear message on when rate 0:02:27.440 --> 0:02:29.960 hikes will end. Well. It's been a big trading day 0:02:29.960 --> 0:02:33.520 in Asia, and each Chinese stock surged overnight as speculation 0:02:33.600 --> 0:02:36.959 grows the government there is making preparations to exit stringent 0:02:37.040 --> 0:02:40.320 COVID restrictions. The Hang Sang in Hong Kong rows five 0:02:40.360 --> 0:02:43.440 per cent, while stocks in China gained three point six percent. 0:02:44.200 --> 0:02:47.280 And we continue to see historic profit from oil companies. 0:02:47.360 --> 0:02:50.560 VP this morning reported its second highest quarterly profit on 0:02:50.680 --> 0:02:53.680 record and announced two and a half billion dollars of 0:02:53.720 --> 0:02:57.960 share buybacks. Bloomberg's at Steven Sabzinski says it's a banner 0:02:58.080 --> 0:03:01.000 year for big oil. It's really hard to see anyone 0:03:01.080 --> 0:03:04.240 who is really losing out on this surgeon prices, and 0:03:04.240 --> 0:03:06.480 you've seen it across the board over the last week. 0:03:06.480 --> 0:03:10.600 You've seen you know, Shell total x on h VP 0:03:10.919 --> 0:03:14.440 is is joining this larger group not just in Europe, 0:03:14.440 --> 0:03:16.400 in the United States, but you're also seeing this in 0:03:16.639 --> 0:03:21.200 you know, Saudi Aramco posted their second best quarterly profit ever. Now, 0:03:21.200 --> 0:03:24.840 when it comes to Saudi Aramco, Bloomberg's Steven Stepzinski reports 0:03:24.880 --> 0:03:28.280 the company posted its second highest earnings on record this morning. 0:03:28.680 --> 0:03:31.280 The results from big oil this quarter are do largely 0:03:31.320 --> 0:03:33.880 the surging prices at the pump. Yeah, we've also seen 0:03:33.919 --> 0:03:36.280 record profits from x On Mobile and Chevron. Of course, 0:03:36.320 --> 0:03:39.400 amy they amassed more than thirty billion dollars in combined 0:03:39.400 --> 0:03:42.320 net income last quarter, and that has President Biden calling 0:03:42.360 --> 0:03:45.600 on Congress to impose higher taxes on oil companies. If 0:03:45.600 --> 0:03:49.440 they're not reinvesting in production. They don't, they're gonna pay 0:03:49.480 --> 0:03:53.200 a higher tax on their excess profits and face other restrictions. 0:03:53.760 --> 0:03:56.200 My team will work with Congress to look at these 0:03:56.280 --> 0:03:58.760 up these options that are available to us and others. 0:03:59.440 --> 0:04:02.280 It's time for these comedies to stop for profit cheering 0:04:02.640 --> 0:04:05.680 by President Biden's promised to impose higher taxes will be 0:04:05.720 --> 0:04:09.160 hard to deliver. Democrats have unsuccessfully sought a so called 0:04:09.160 --> 0:04:12.000 windfall profit tax for more than a decade. Such a 0:04:12.040 --> 0:04:14.240 proposal would have a hard time passing the Senate and 0:04:14.360 --> 0:04:18.440 its current makeup. And Nathan Central Banks are also in focus. 0:04:18.640 --> 0:04:21.080 This morning, the Fed begins it's two day policy meeting. 0:04:21.200 --> 0:04:24.960 It is expected to hike rates another seventy basis points. 0:04:25.279 --> 0:04:28.560 At the same time, Australia's Central Bank has raised interest 0:04:28.640 --> 0:04:31.159 rates by a quarter percentage point. It looks like the 0:04:31.240 --> 0:04:34.000 r b A is pivoting away from larger hikes. That's 0:04:34.000 --> 0:04:37.120 according to Bloomberg's that Garfield Reynolds, it's definitely a pivot 0:04:37.160 --> 0:04:39.800 for the r b A. The question is whether other 0:04:39.880 --> 0:04:42.520 central banks are going to be as concerned about the 0:04:42.560 --> 0:04:46.719 growth side of the mandate as the AVA is signaling 0:04:46.800 --> 0:04:49.559 that it is. It's still concerned about inflation. It says 0:04:49.680 --> 0:04:53.360 more hikes are to come, but reading between the lines, 0:04:53.440 --> 0:04:56.760 it's concerned about growth mean that it's not wanting to 0:04:56.800 --> 0:05:00.000 go more than twenty five basis points of time. Bloom 0:05:00.200 --> 0:05:03.400 Chief Rates correspond and Garfield Reynolds says the cash rate 0:05:03.400 --> 0:05:07.800 in Australia now stands at two. That's the highest level 0:05:07.839 --> 0:05:11.240 since In corporate news this morning, Amy we're focused on 0:05:11.279 --> 0:05:14.200 credit suits again. The Swiss Bank is not for sale. 0:05:14.360 --> 0:05:16.840 That's what the firm's chairman Axel Leman is saying, after 0:05:16.880 --> 0:05:19.800 shares have fallen more than fifty percent this year. He 0:05:19.880 --> 0:05:22.719 spoke to us in Hong Kong. We're going to you know, 0:05:22.839 --> 0:05:27.040 to swife again, so we don't have any take over 0:05:27.240 --> 0:05:30.200 the conscience and at that point we truly believe we 0:05:30.279 --> 0:05:33.080 want to stay independent. Credit Swiss chairman Excel Layman made 0:05:33.120 --> 0:05:35.640 the comments in an interview with Bloomberg News. Stay tuned 0:05:35.680 --> 0:05:37.960 for more of that conversation coming up later this hour. 0:05:38.400 --> 0:05:40.599 And back here in the US, the airline and travel 0:05:40.640 --> 0:05:45.960 recovery continues as the busy holiday season approaches. Dert Delta 0:05:46.080 --> 0:05:49.960 air pilots have voted to authorize a strike. Let's get 0:05:49.960 --> 0:05:53.040 the story from Bloomberg's Charlie Pellett. It gives union leaders 0:05:53.040 --> 0:05:56.520 the authority to call for a work stoppage once they 0:05:56.560 --> 0:06:00.280 have gone through steps set by federal labor law. The 0:06:00.320 --> 0:06:04.000 Delta unit of the Airline Pilots Association says about ninety 0:06:04.080 --> 0:06:08.080 nine percent of pilots who voted approved the proposal. The 0:06:08.240 --> 0:06:13.040 participation rate among Delta's roughly fifteen thousand pilots was ninety 0:06:13.160 --> 0:06:17.040 six percent. While aviators must follow steps set by the 0:06:17.120 --> 0:06:20.640 Railway Labor Act and can't randomly walk off the job, 0:06:20.960 --> 0:06:24.200 the strength of the vote represents pilot's view about the 0:06:24.279 --> 0:06:28.720 lack of progress in negotiations in New York. Charlie Palot 0:06:28.720 --> 0:06:32.000 Bloomberg Daybreak, Charlie thanks in another note on the airline industry. 0:06:32.040 --> 0:06:34.800 For the first time since COVID cut air travel, US 0:06:34.880 --> 0:06:38.440 airline passenger traffic has been running above twenty nineteen levels. 0:06:38.480 --> 0:06:40.800 Just over fifteen million people went through t s A 0:06:40.960 --> 0:06:43.440 security portals in the past seven days. That's about thirty 0:06:43.520 --> 0:06:46.800 nine thousand more than and On the political front, the 0:06:46.839 --> 0:06:49.400 midterm elections are set for a week from today, which 0:06:49.440 --> 0:06:52.640 means a policy change from Twitter. The social media company 0:06:52.640 --> 0:06:55.520 has frozen some employee access to internal tools used for 0:06:55.560 --> 0:06:59.160 content moderation and other policy enforcement, curbing the staff's ability 0:06:59.200 --> 0:07:02.640 to clamp down on misinformation ahead of the election. Bloomberg 0:07:02.680 --> 0:07:05.000 News has learned most people who work in Twitter's Trust 0:07:05.080 --> 0:07:09.480 and Safety organization are currently unable to alter or penalize 0:07:09.480 --> 0:07:14.040 most accounts that break rules around misleading information, offensive posts, 0:07:14.080 --> 0:07:23.960 and hate speech futures are higher. This is Bloomberg five 0:07:24.000 --> 0:07:26.200 oh seven on Wall Street. Let's bring in Michael Barr 0:07:26.200 --> 0:07:27.680 with more on what else is going on in New 0:07:27.760 --> 0:07:30.840 York and around the world. Good morning Michael, Good morning Amy. 0:07:30.960 --> 0:07:34.400 A salary transparency law. It takes affect today in New 0:07:34.480 --> 0:07:38.040 York City. It requires most companies in the nation's largest 0:07:38.120 --> 0:07:42.280 job market to include minimum and maximum salary ranges when 0:07:42.280 --> 0:07:46.480 they post job openings. The law supporters say it intends 0:07:46.600 --> 0:07:49.840 to close the pay gap for women and people of color, 0:07:50.120 --> 0:07:53.440 but critics argue it will do just the opposite. The 0:07:53.480 --> 0:07:57.320 Supreme Court kicked off hearing arguments over affirmative action at universities. 0:07:57.680 --> 0:08:02.000 Conservative groups have sued both Harvard University and the University 0:08:02.040 --> 0:08:05.559 of North Caroline up claiming that their admissions processes aren't 0:08:05.600 --> 0:08:09.280 fair to white or Asian applicants. The courts three liberal 0:08:09.360 --> 0:08:12.440 justices cast a doubt on whether race is the sole 0:08:12.480 --> 0:08:17.040 indicator and admissions processes. Attorney Patrick Strawbridge represents students for 0:08:17.160 --> 0:08:20.080 Fair Admissions in the U n C case and says 0:08:20.120 --> 0:08:22.960 that race should only be used in a broader context 0:08:23.000 --> 0:08:27.160 of an application. Racial classifications are wrong. That principle was 0:08:27.280 --> 0:08:30.560 enshrined in our law at great cost Following the Civil War. 0:08:30.840 --> 0:08:33.960 Justice Helena Kagan encountered, the race is part of the culture, 0:08:33.960 --> 0:08:35.960 and the culture is part of the race, isn't it. 0:08:36.040 --> 0:08:39.960 I mean that's slicing the Boloney awfully since. Meanwhile, conservative 0:08:40.040 --> 0:08:43.280 justices have been casting doubt on whether the affirmative action 0:08:43.320 --> 0:08:47.680 programs are needed. A correction officer inside Rikers Island was 0:08:47.679 --> 0:08:50.480 injured after being stabbed over a dozen times. The New 0:08:50.559 --> 0:08:54.000 York City Department of Corrections says it happened yesterday afternoon. 0:08:54.120 --> 0:08:56.520 The officer is said to be in stable condition at 0:08:56.559 --> 0:09:00.480 Elmhurst Hospital. Court documents say the mancus of entering the 0:09:00.520 --> 0:09:03.360 San Francisco home of how speaker Nancy Pelosi wanted to 0:09:03.400 --> 0:09:07.079 break her kneecaps. Speaker was not home. Police say forty 0:09:07.120 --> 0:09:11.400 two year old David pop attacked her husband, Paul Pelosi. Meanwhile, 0:09:11.440 --> 0:09:15.360 Democratic Congresswoman Debbie Dingle of Michigan discussed the attack on 0:09:15.400 --> 0:09:19.800 Paul Pelosi and heightened tensions over political rhetoric and violence. 0:09:20.320 --> 0:09:24.480 She referred to recent Elon Musk tweets on Pelosi. The 0:09:24.559 --> 0:09:28.680 conspiracy theories are also adding to this and putting kerosene 0:09:28.720 --> 0:09:32.640 on and people won't read it. So yeah, you know what, 0:09:32.840 --> 0:09:35.679 I will go after somebody. I thinks a new owner 0:09:35.840 --> 0:09:39.960 of Twitter's got some responsibilities too, and was horrified that 0:09:40.120 --> 0:09:44.719 he would participate in some of this conspiracy theory has 0:09:44.800 --> 0:09:50.439 no to it, no truth to wit. Congresswoman Dingle spoke 0:09:50.520 --> 0:09:53.119 on sound On, which airs at five pm on Bloomberg 0:09:53.440 --> 0:09:56.080 Global News twenty four hours a day on air, and 0:09:56.240 --> 0:09:59.559 on Bloomberg Quittake, powered by more than hundred journalist and 0:09:59.559 --> 0:10:02.240 analyists in more than a hundred twenty countries. On Michael 0:10:02.240 --> 0:10:04.920 bar this is Bloomberg Gaming. All right, thank you, Michael. 0:10:07.640 --> 0:10:09.880 It's fun. Ten on Wall Street. Time now for the 0:10:09.920 --> 0:10:12.600 sports report, brought to you by Try State Audi. Here's 0:10:12.640 --> 0:10:15.000 John stash Our. All right, Amy, the Brooklyn Nets have 0:10:15.080 --> 0:10:17.559 become some of them was soap opera, and very often 0:10:17.600 --> 0:10:19.920 it has to do with Kyrie Irving. Seems as if 0:10:20.000 --> 0:10:23.400 it's always something with Kyrie. The latest was his posting 0:10:23.480 --> 0:10:26.600 on social media of a link to an anti Semitic video. 0:10:27.080 --> 0:10:29.800 It's also the team's early season performance one in five 0:10:29.880 --> 0:10:32.680 record worst defense in the NBA. So how much needed 0:10:32.720 --> 0:10:35.360 win at Barkley's One, sixteen to one on night over Indiana. 0:10:35.440 --> 0:10:39.160 Kyrie scored points, Kevin Durant had thirty six Milwaukee one 0:10:39.200 --> 0:10:41.000 again the Bucks are six and oh. The Monday night 0:10:41.040 --> 0:10:44.120 game an upset win for Cleveland thirty two to thirteen 0:10:44.120 --> 0:10:47.240 over Cincinnati. The Browns led to nothing in the fourth quarter. 0:10:47.600 --> 0:10:50.800 NFL trade deadline four o'clock today, Giants could be looking 0:10:50.840 --> 0:10:53.440 for a wide receiver. Jets white out Elijah Moore has 0:10:53.480 --> 0:10:56.160 asked to be traded. No quarterback change for the Jets 0:10:56.400 --> 0:10:59.640 despite Zack Wilson's three interceptions and the loss of the Patriots. 0:10:59.679 --> 0:11:02.640 The Jet coach Robert Salad, I've got full confidence insa 0:11:02.840 --> 0:11:06.880 we all do. Um um. You know, it's not like 0:11:06.920 --> 0:11:09.280 he hasn't had bad games before and he stepped up 0:11:09.320 --> 0:11:11.880 and has followed over with good days. So you know, 0:11:11.880 --> 0:11:13.840 with the way he preps and the way he practices 0:11:13.920 --> 0:11:16.920 and the questions he asks, we've got faith that will 0:11:16.960 --> 0:11:19.120 continue continue to find ways to get better. From Jets 0:11:19.120 --> 0:11:21.079 to have a tough one Sunday against six and one 0:11:21.120 --> 0:11:25.160 Buffalo College football Auburn fired coach Brian Harrison, so he 0:11:25.200 --> 0:11:27.880 didn't finish the second season of a six year contract 0:11:28.000 --> 0:11:31.040 alone about fifteen million dollars. They're also still playing the 0:11:31.040 --> 0:11:34.319 previous Coach World Series resumed Tonither in Philadelphia after last 0:11:34.400 --> 0:11:36.920 night's rain out. The Phillies have changed their Game three 0:11:36.960 --> 0:11:40.240 starter out is the x met Noah Synder Guard in 0:11:40.400 --> 0:11:43.080 his Rangers swore as the Astros are sticking with Lance 0:11:43.200 --> 0:11:46.360 mccullor's The World Series is tied at one. John stash 0:11:46.520 --> 0:11:49.960 with Bloomberg Sports in all right, Thank you, John. Futures 0:11:50.000 --> 0:11:53.080 are higher, SMP futures up by twenty five points, Staal 0:11:53.240 --> 0:11:55.600 future is a hundred fifty two points higher, and Nasdaq 0:11:55.679 --> 0:11:59.120 features higher by almost nine two points. Much more ahead 0:11:59.120 --> 0:12:08.240 on Bloomberg Day Break. This is Bloomberg. The Bloomberg Sports 0:12:08.240 --> 0:12:10.400 Report was brought to you by Audie. Don't let someone 0:12:10.440 --> 0:12:13.120 else drive off in the Audi model you've always wanted. 0:12:13.200 --> 0:12:15.440 Visit your local try state autie dealer to get behind 0:12:15.480 --> 0:12:18.079 the wheel of yours today, or visit Autie Offers dot 0:12:18.080 --> 0:12:24.480 com for more information, markets, headlines and breaking news twenty 0:12:24.480 --> 0:12:27.359 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:27.360 --> 0:12:31.800 Business at and at Bloomberg Rictape. He's a Bloomberg Business Flash. 0:12:37.559 --> 0:12:40.559 I'm Nathan Hagar. Stocks and futures are rallying. The dollar 0:12:40.679 --> 0:12:43.520 and treasury yields are falling as investors await the Federal 0:12:43.559 --> 0:12:46.959 Reserves policy meeting. It kicks off today. We checked the 0:12:47.000 --> 0:12:49.959 markets every fifteen minutes during the trading day on Bloomberg, 0:12:50.280 --> 0:12:53.080 SMP futures are up twenty six points down futures up 0:12:53.080 --> 0:12:56.120 a hundred sixty one. Nastact futures are higher by ninety 0:12:56.200 --> 0:12:59.240 six points. The tenure treasury is up sixteen thirty seconds. 0:12:59.240 --> 0:13:01.839 The yield at three point yield on the two year 0:13:02.160 --> 0:13:05.160 four point four three percent. NIMEX screwed is higher by 0:13:05.160 --> 0:13:08.040 eight tenths percent, or seventy two cents at eighty seven dollars. 0:13:08.080 --> 0:13:10.560 Twenty five cents of barrel comic gold is up a 0:13:10.559 --> 0:13:14.040 half percent or eight dollars ten cents at six eighty announced. 0:13:14.320 --> 0:13:17.520 The euro is trading at point nine six against the dollar, 0:13:17.720 --> 0:13:20.640 British pound one point one eight. The yen is at 0:13:20.640 --> 0:13:23.880 one seven point six nine. Ten am Wall Street Time, 0:13:23.880 --> 0:13:26.920 we get jolts job openings in I S M manufacturing data. 0:13:27.160 --> 0:13:30.080 Nearly fifty companies on the S and P five index 0:13:30.080 --> 0:13:33.199 reporternings today. That's a Bloomberg business flatch. Now with more 0:13:33.240 --> 0:13:35.040 on what's going on around the world, here's Michael bar 0:13:35.160 --> 0:13:37.920 Good morning, Michael, Good morning, Nathan. The Supreme Court heard 0:13:38.000 --> 0:13:41.640 arguments in cases challenging the consideration of a student's race 0:13:41.720 --> 0:13:45.959 and college admissions. The cases involving Harvard and the University 0:13:45.960 --> 0:13:49.400 of North Carolina could end affirmative action at public end 0:13:49.480 --> 0:13:53.160 private schools across the country. Airline passenger traffic in the 0:13:53.240 --> 0:13:56.880 US has been running above the comparable levels of twenty nineteen. 0:13:57.559 --> 0:14:00.160 The t s A says it's the first time that's 0:14:00.160 --> 0:14:04.240 happened since COVID nineteen dramatically cut air travel. They'll try 0:14:04.280 --> 0:14:06.880 to make up Game three of the World Series in Philadelphia. 0:14:07.160 --> 0:14:10.720 Last night's Phillies and Astro's game was postponed because of rain. 0:14:11.120 --> 0:14:14.320 In the NBA, the Nets won, the Wizards lost. In 0:14:14.400 --> 0:14:16.719 the NHL, the Capital is lost in a shootout with 0:14:16.760 --> 0:14:20.760 the Hurricanes three to The Browns beat the Ravens thirteen 0:14:20.840 --> 0:14:23.960 and Monday Night Football. Global News twenty four hours a 0:14:24.040 --> 0:14:27.720 day on air and on Bloomberg Quicktake, powered by more 0:14:27.800 --> 0:14:30.400 than twenty seven hundred journalists and analysts, are more than 0:14:30.400 --> 0:14:33.200 a hundred twenty countries. I'm Michael Barr, and this is 0:14:33.280 --> 0:14:36.680 Bloomberg Gaming. All right, thank you, Michael. It is five 0:14:36.760 --> 0:14:39.680 twenty on Wall Street where live from the Bloomberg Interactive 0:14:39.680 --> 0:14:42.800 Broker Studios. This is Bloomberg Daybreak. Now. For months, the 0:14:42.800 --> 0:14:45.520 White House has been calling on oil companies to invest 0:14:45.640 --> 0:14:49.680 more in oil production. Bloomberg data show the biggest companies 0:14:49.680 --> 0:14:52.600 like Exxon, Shell and Chevron are handing a lot of 0:14:52.600 --> 0:14:56.240 that money over to shareholders and just reinvesting only a 0:14:56.360 --> 0:14:59.600 fraction of their windfall. Now, President Biden has announced as 0:14:59.600 --> 0:15:02.640 planned who raise taxes on oil companies that record those 0:15:02.680 --> 0:15:06.720 windfall profits without reinvesting the money back into production. We're 0:15:06.800 --> 0:15:09.800 joined now by the founder of Pangea Policy, Terry Haines. 0:15:09.880 --> 0:15:12.120 It's gonna help us make sense of it all. Terry, 0:15:12.160 --> 0:15:14.320 thank you for taking the time with us this morning. 0:15:14.360 --> 0:15:17.440 First of all, the presidents also gonna need congressional support 0:15:17.520 --> 0:15:20.680 to do this. Is he going to get it? Good morning, Amy. 0:15:20.840 --> 0:15:24.120 Uh No, he's not. Uh this you know, this strikes 0:15:24.160 --> 0:15:27.560 me politically above all as uh kind of what the 0:15:27.600 --> 0:15:30.880 soccer fans call an own goal. Uh. You know, the 0:15:31.200 --> 0:15:33.600 President's may have been talking about this off and on 0:15:33.720 --> 0:15:37.920 for for a while, but he touts his major legislative 0:15:37.920 --> 0:15:42.160 achievement this year is being the Inflation Reduction Act, Uh, 0:15:42.280 --> 0:15:45.520 something with which you know he wasn't so much involved 0:15:45.560 --> 0:15:49.600 as uh Leader Schumer and Senator Mansion were. And you 0:15:49.640 --> 0:15:52.440 know that was the windfall profits taxes. Not only nowhere 0:15:52.480 --> 0:15:55.120 in that bill, but it was not even discussed at 0:15:55.160 --> 0:15:58.600 that particular time. Uh So what it seems what it 0:15:58.680 --> 0:16:03.160 seems like is a situation where uh, you know, they 0:16:03.520 --> 0:16:06.880 pull out this windfall profits tax narrative whenever they think 0:16:06.880 --> 0:16:10.400 convenient politically, but they're not actually committed to it at all. 0:16:11.040 --> 0:16:13.640 And you know, and frankly, I think voters are gonna 0:16:13.680 --> 0:16:17.320 wonder why so well, not just that, but I'm wondering 0:16:17.360 --> 0:16:19.280 if it's too little too late. I mean, we are 0:16:19.360 --> 0:16:21.960 eyeball deep in the mid term season. Some places are 0:16:22.000 --> 0:16:26.440 already holding early voting in their district. So is this 0:16:26.760 --> 0:16:30.200 coming way too little, way too late? Oh? Yeah, absolutely. 0:16:30.280 --> 0:16:33.040 The you know, the this line might have had some 0:16:33.080 --> 0:16:35.720 public residents six or more months ago, and if you, 0:16:36.200 --> 0:16:40.120 as a communications device, allowed it to develop, and you know, 0:16:39.960 --> 0:16:42.440 you make your case and try to bring the public 0:16:42.480 --> 0:16:44.640 with you. And that's probably how you bring Congress with you. 0:16:45.040 --> 0:16:48.400 But but that's not that's not happening. And the other 0:16:48.440 --> 0:16:51.440 thing I've mentioned briefly is that, you know, the Biden 0:16:51.520 --> 0:16:55.800 legislative achievements, whatever else they are, generally have not featured 0:16:56.280 --> 0:16:59.920 Biden's direct involvement. As I say, the Inflation Reduction Act 0:17:00.080 --> 0:17:04.200 is much more of a mansion product and president that 0:17:04.720 --> 0:17:07.320 was told the White House was told by the bipartisan 0:17:07.359 --> 0:17:11.080 people developing the infrastructure bill frankly, to stay out of negotiations. 0:17:11.119 --> 0:17:13.919 I mean that was publicly known at the time. So, um, 0:17:14.040 --> 0:17:16.960 you've got a White House here who has no persuasive 0:17:17.000 --> 0:17:20.439 ability to actually bring the Congress along with them, and 0:17:20.600 --> 0:17:22.320 you know, certainly not going to bring a lame duck 0:17:22.359 --> 0:17:26.480 Congress of along. And next year's is whether it's a 0:17:27.160 --> 0:17:30.000 whether it's Republican majorities or a split Congress is not 0:17:30.320 --> 0:17:32.480 is not a Congress that's going to do anything about 0:17:32.520 --> 0:17:36.080 this or react to Biden's proposals at all. Did you 0:17:36.119 --> 0:17:39.600 get the impression that the President is sort of holding 0:17:39.720 --> 0:17:43.040 his own party accountable for not doing this sooner because 0:17:43.080 --> 0:17:48.040 Democrats have been pushing for this for months, well exactly. Uh. 0:17:48.080 --> 0:17:50.639 You know, one reason I think of it as an 0:17:50.680 --> 0:17:54.800 own goal is you know, it is I'm not sure 0:17:54.800 --> 0:17:57.359 the White House understands the optics of this, frankly, And 0:17:57.640 --> 0:17:59.960 what it looks like is the president blaming his own 0:18:00.080 --> 0:18:03.359 rational party for not getting uh for not getting something done. 0:18:04.000 --> 0:18:06.639 I don't think that's a good look, and it's certainly uh, 0:18:06.920 --> 0:18:10.600 it certainly undermines the seriousness of what he says he wants, 0:18:10.960 --> 0:18:15.160 but it undermines the seriousness of Biden and Democrats politically. 0:18:15.200 --> 0:18:16.960 If they mean, if they're not on all fours and 0:18:17.000 --> 0:18:19.600 can't get anything done, now I've you know, why why 0:18:19.720 --> 0:18:23.480 vote for them to be blunted? But what would this 0:18:23.560 --> 0:18:26.199 then mean for the other business of government on Congress 0:18:26.280 --> 0:18:29.040 isn't going to be coming back until after the midterms 0:18:29.040 --> 0:18:31.080 are over with, But they still have spending bills they 0:18:31.080 --> 0:18:32.639 have to work on, they have the budget, they have 0:18:32.720 --> 0:18:34.800 all sorts of other issues that are on their plate. 0:18:35.280 --> 0:18:38.520 Is this gonna, I don't know, throw a little smoke 0:18:38.680 --> 0:18:41.119 up in the air and causes some confusion or cause 0:18:41.560 --> 0:18:45.080 them to be able to things to to actually grind 0:18:45.080 --> 0:18:47.440 to an even slower halt when I'm trying to say, yeah, 0:18:47.840 --> 0:18:51.200 well no, I think you're absolutely right. But the the 0:18:51.760 --> 0:18:54.840 the last business of this Congress, which will happen, you know, 0:18:54.920 --> 0:18:58.160 after Thanksgiving into December, is trying to come up with 0:18:58.440 --> 0:19:03.679 UH fiscal year three spending bills. UH in English, what 0:19:03.800 --> 0:19:06.480 that means is that the government will be three months 0:19:06.520 --> 0:19:08.600 behind on its own fiscal spending for this year, and 0:19:08.640 --> 0:19:11.359 we'll try to come up with full year spending bills. 0:19:11.640 --> 0:19:13.800 I never thought they'd be able to do that before 0:19:13.880 --> 0:19:16.000 the end of the year for a variety of reasons. 0:19:16.000 --> 0:19:18.960 I mean, they just don't seem ready. There's uh, there's 0:19:19.160 --> 0:19:21.920 squawking back and forth about whether or not they can 0:19:22.119 --> 0:19:26.240 uh add some debt limit, that ceiling language to it. Uh. 0:19:26.240 --> 0:19:29.919 This was already going to get kicked into uh with 0:19:29.960 --> 0:19:33.800 temper with another temporary spending bill get kicked into three 0:19:33.840 --> 0:19:36.240 and the new Congress, and that was even that's even 0:19:36.240 --> 0:19:40.320 more likely with this windfall profits tax value. All right, 0:19:40.440 --> 0:19:42.920 Terry Hayes, founder of Panagia Policy, I want to thank 0:19:42.960 --> 0:19:44.800 you for your perspective on this, and of course we're 0:19:44.800 --> 0:19:48.160 gonna keep watching it with you, particularly as the mid 0:19:48.280 --> 0:19:51.040 terms come right around the corner. SMP futures twenty seven 0:19:51.040 --> 0:19:54.440 points higher, DALF futures higher by one D sixty five points, 0:19:54.760 --> 0:19:58.680 now that futures one hundred three points higher. Much more 0:19:58.720 --> 0:20:01.200 still to come on Bloomberg day Break, Stay with us 0:20:01.240 --> 0:20:07.760 on this Tuesday morning. This is Bloomberg. Bloomberg Daybreak is 0:20:07.760 --> 0:20:09.840 brought to you by the New York Community. Trust your 0:20:09.920 --> 0:20:11.840 name will live on as a champion of the causes 0:20:11.880 --> 0:20:14.560 you care about four years to come through a charitable 0:20:14.600 --> 0:20:17.439 bequest to the New York Community Trust. Learned more at 0:20:17.440 --> 0:20:25.040 Philanthropist dot NYC. Broadcasting live from the Bloomberg the Interactive 0:20:25.080 --> 0:20:28.920 Broker Studio in New York, Bloomberg E Living Freedom to Washington, 0:20:29.000 --> 0:20:33.120 d C, Bloomberg to Boston, Bloomberg one O six one 0:20:33.200 --> 0:20:36.640 does San Francisco, Bloomberg nine sixty to the country Sirius 0:20:36.840 --> 0:20:39.960 XM Cho one nineteen and around the globe, the Bloomberg 0:20:40.040 --> 0:20:43.959 Business app and Bloomberg Radio dot Com. This is Bloomberg 0:20:44.040 --> 0:20:51.880 Daybreak and it's five thirty on Wall Street. Good morning. 0:20:51.880 --> 0:20:54.760 I'm Nathan Hager. Hi'm Amy Morris. Bloomberg day Break is 0:20:54.800 --> 0:20:57.199 brought to you by s E I imagine your asset 0:20:57.240 --> 0:21:01.200 management firms, operational infrastructure as a compet of advantage. Let 0:21:01.320 --> 0:21:03.040 s E I show you how at s E I 0:21:03.119 --> 0:21:05.720 C dot com slash I M S and we're just 0:21:05.760 --> 0:21:07.840 about four hours away from the open of US trading. 0:21:07.920 --> 0:21:09.480 Let's get you up to date on the news you 0:21:09.520 --> 0:21:12.159 need to know at this hour. US Futures are hired 0:21:12.160 --> 0:21:14.439 to start the week as investors Europe for this week's 0:21:14.440 --> 0:21:17.720 FED meeting and the October jobs report. The Fed, especially 0:21:17.720 --> 0:21:21.240 as front and center. According to Bloomberg macro strategist Vince Signarella, 0:21:21.600 --> 0:21:24.440 the Fed made pivots sooner than expected. I think that's 0:21:24.440 --> 0:21:27.159 what the markets are hoping for, some indication that the 0:21:27.160 --> 0:21:30.600 Fed acknowledges that their work is starting to find its 0:21:30.640 --> 0:21:32.919 way through to the economy, specifically in housing, as we 0:21:32.960 --> 0:21:36.040 saw last week pending home sales down over on a 0:21:36.080 --> 0:21:38.560 month over month basis. That's what the market is hoping for. 0:21:38.680 --> 0:21:41.760 Bloomberg's Vince Signerella says markets will respond negatively if the 0:21:41.760 --> 0:21:45.240 Fed does not forecast easing monetary policy in the near future. 0:21:45.560 --> 0:21:48.440 Expectations are for the FED to raise rates seventy five 0:21:48.480 --> 0:21:52.679 basis points tomorrow, followed by fifty in December. Meantime, in Australia, 0:21:52.760 --> 0:21:55.439 the Central bank hike to interest rates today by just 0:21:55.520 --> 0:21:58.600 a quarter percentage point sparked bets that the r b 0:21:58.720 --> 0:22:01.159 A is pivoting away for large types. Well, it has 0:22:01.160 --> 0:22:04.360 been a big day in Asia. Any Chinese stocks surged overnight, 0:22:04.359 --> 0:22:08.199 a speculation grows the government's making preparations to exit COVID restrictions. 0:22:08.400 --> 0:22:10.760 The Hang Sing in Hong Kong rose five percent, while 0:22:10.800 --> 0:22:13.840 stocks in China gained three point six percent, and Nathan, 0:22:13.880 --> 0:22:16.840 we're also seeing historic profits from big oil. Saudi Aramco 0:22:16.880 --> 0:22:19.960 and BP posted their second highest quarterly earnings this morning. 0:22:20.280 --> 0:22:23.360 That's after record profit from Exxon and Chevron. It has 0:22:23.359 --> 0:22:27.000 President Biden calling on Congress to impose higher taxes on 0:22:27.119 --> 0:22:30.720