WEBVTT - Bloomberg Daybreak: October 7, 2022 - Hour 2 (Radio) 0:00:01.800 --> 0:00:05.119 By from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.200 --> 0:00:08.719 day Break for Friday, October seven two. Coming up this hour, 0:00:09.039 --> 0:00:12.080 we await US jobs data as stocks try to avoid 0:00:12.080 --> 0:00:15.400 a three day slide that officials overwhelmingly pushed back against 0:00:15.400 --> 0:00:18.200 the idea of cutting rates next year. The trial between 0:00:18.200 --> 0:00:20.759 Elon Musk and Twitter gets delayed and helps the deal 0:00:20.800 --> 0:00:23.760 will close. An oil voice for a big weekly rally 0:00:23.800 --> 0:00:26.799 after Opex announced cutting judges ruling as a blow to 0:00:26.880 --> 0:00:30.040 New York State's new gun law. Plus an n y 0:00:30.160 --> 0:00:33.360 p D cruiser crashes onto a sidewalk in during ten 0:00:33.440 --> 0:00:36.280 People on Michael barr More I'm John Stay Show, where 0:00:36.280 --> 0:00:38.440 the Colts meet the Broncos it over time. The Medicine 0:00:38.479 --> 0:00:42.080 Padres begin their wild Card playoff series tonight at City Field. 0:00:44.479 --> 0:00:48.680 That's All's tradinghead on Bloomberg Daybreak on Bloomberg Eliving Free 0:00:48.680 --> 0:00:53.120 on New York, Bloomberg one, Washington d C, Bloomberg one 0:00:53.120 --> 0:00:57.639 oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 0:00:57.800 --> 0:01:00.200 x M one nine Team and around the world on 0:01:00.360 --> 0:01:03.720 Bloomberg Radio dot Com and via the Bloomberg business Side 0:01:07.400 --> 0:01:10.320 and Good Morning I'm Kared Moscow, I'm Nathan Hagar. Bloomberg 0:01:10.400 --> 0:01:12.600 Daybreak is brought to you by B and Y Melon's Pershing. 0:01:12.680 --> 0:01:15.920 Learn why the world's most sophisticated wealth management and institutional 0:01:15.959 --> 0:01:19.640 firms rely on Pershing to help them improve profitability, create efficiency, 0:01:19.680 --> 0:01:23.399 attract talent, and manage risk at Pershing dot Com and 0:01:23.520 --> 0:01:26.200 US futures are a little change this morning. It's six 0:01:26.200 --> 0:01:27.839 o one on Wall Street and we checked the markets 0:01:27.840 --> 0:01:30.520 every fifteen minutes throughout the trading day on bloomberg S 0:01:30.600 --> 0:01:33.000 and p futures. That will change this morning now futures 0:01:33.040 --> 0:01:35.800 up sixty two and ASDAC futures down twenty nine. And 0:01:35.880 --> 0:01:38.120 this data check brought to you by SEI, built on 0:01:38.120 --> 0:01:41.880 advanced technologies and fifty years of innovation. SEI offers asset 0:01:41.920 --> 0:01:45.600 managers a comprehensive and flexible operations outsourcing platform. Go to 0:01:45.720 --> 0:01:49.400 se i C dot com slash Managers. Karen, let's begin 0:01:49.440 --> 0:01:51.920 with talk from the Fed. Central Bankers are coming out 0:01:51.920 --> 0:01:54.680 in full force to talk down expectations of a turn 0:01:54.720 --> 0:01:57.520 to more dubbish policy. We heard hawkish comments from no 0:01:57.680 --> 0:02:01.720 less than five officials yesterday include Minneapolis Fed President Neil 0:02:01.760 --> 0:02:04.880 cash Cary until I see some evidence that underlying inflation 0:02:05.280 --> 0:02:08.880 has solidly peaked and is hopefully headed back down. I'm 0:02:08.880 --> 0:02:12.080 not ready to declare pause. Minneapolis FED President Neil cash 0:02:12.120 --> 0:02:15.120 Cary says he expects losses and failures around the global 0:02:15.120 --> 0:02:18.600 economy as we transition to a higher interest rate environment. Likewise, 0:02:18.639 --> 0:02:21.280 FED Governor Christopher Waller says he sees no sign of 0:02:21.280 --> 0:02:24.519 a FED pivot either this or next year. I anticipate 0:02:24.639 --> 0:02:28.320 additional rate hikes into early next year, and I'll be 0:02:28.360 --> 0:02:31.200 watching the data carefully to decide the appropriate pace of 0:02:31.280 --> 0:02:34.280 tightening as we continue to move into more and more 0:02:34.360 --> 0:02:37.720 restrictive territory. FED Governor Christopher Waller emphasized the need to 0:02:37.760 --> 0:02:40.919 find inflation. We heard similar remarks from Cleveland Fed chief 0:02:41.000 --> 0:02:44.160 Ler and Amester FED Governor Lisa Cook, and Chicago's Charles 0:02:44.160 --> 0:02:47.000 Evans yesterday. Oh, we take a look at markets now, 0:02:47.080 --> 0:02:50.000 Nathan and US dock index futures are a little change. 0:02:50.080 --> 0:02:52.280 The hawk ish FED talk and some weak earnings from 0:02:52.280 --> 0:02:56.160 shipmakers are hitting sentiment. And Jessica Biemer's portfolio manager with 0:02:56.200 --> 0:02:59.760 Easterly Investment Partners, I think we all have to understand, 0:03:00.080 --> 0:03:04.120 uh um, We're only going to get early hints of 0:03:04.160 --> 0:03:06.840 the Fed's full impact. A lot of the efforts that 0:03:06.880 --> 0:03:09.760 they've put out There obviously huge increasures in the interest rate, 0:03:09.840 --> 0:03:11.560 but that that takes time to work its way through the 0:03:11.600 --> 0:03:14.520 economy and certainly on the jobs numbers that we're going 0:03:14.520 --> 0:03:17.880 to see. Jessica Beamer with Easterly Investment Partners says that 0:03:18.040 --> 0:03:21.200 policy could start hitting earnings in the coming months. Job's 0:03:21.240 --> 0:03:23.680 report is the key event on the agenda today, Karen, 0:03:23.680 --> 0:03:26.160 we get the employment figures for September at eight thirty 0:03:26.200 --> 0:03:28.400 a m. Wall Street time, and here the preview is 0:03:28.400 --> 0:03:32.080 Bloomberg Economics correspondent Michael McKee. Employment is one of the 0:03:32.120 --> 0:03:34.720 Fed's two mandates, and this Job's report will be one 0:03:34.720 --> 0:03:37.520 of the key numbers as policymakers decide on a rate 0:03:37.600 --> 0:03:39.880 hike next month. What they'd like to see is job 0:03:39.920 --> 0:03:42.800 growth in the neighborhood of the Bloomberg consensus, which would 0:03:42.800 --> 0:03:46.680 suggest the economy is slowing but not crashing. Unemployment is 0:03:46.720 --> 0:03:50.080 also key. No change is expected, but historically a jump 0:03:50.080 --> 0:03:52.680 in the jobless for it is a sign of recession ahead. 0:03:52.920 --> 0:03:56.400 Stronger job creation or lower unemployment would suggest the Fed 0:03:56.400 --> 0:04:00.120 will push interest rates higher for longer disappointing investors. A 0:04:00.120 --> 0:04:03.440 consensus like report would turn attention to next week's consumer 0:04:03.440 --> 0:04:06.840 price index, a final decision point for the Fed. Michael 0:04:06.880 --> 0:04:09.960 McKay Bloomberg Daybreak. Thanks stick with us all morning for 0:04:10.040 --> 0:04:13.000 live coverage of the September jobs report, plus a conversation 0:04:13.040 --> 0:04:15.720 with Marty Walsh. Should we speak with the US Labor Secretary? 0:04:15.760 --> 0:04:18.359 Coming up in the nine am hour on Bloomberg Radio 0:04:18.400 --> 0:04:21.320 and Television. Nathan returned to Oil now, and we're seeing 0:04:21.360 --> 0:04:24.200 crude hand for its biggest weekly gain since March, after 0:04:24.200 --> 0:04:27.360 sliding on concerns over a global slowdown. Oil is rallied 0:04:27.400 --> 0:04:30.000 since Opek announced plans for a large production cut and 0:04:30.080 --> 0:04:32.360 checking prices right now and I make screwed. Oil is 0:04:32.440 --> 0:04:34.880 up nine tens of a percent at eighty nine dollars 0:04:34.920 --> 0:04:37.279 twenty one cents of barrel. Brent is up eight tens 0:04:37.279 --> 0:04:40.120 of up presented ninety five dollars seventeen cents. Now, let's 0:04:40.120 --> 0:04:42.479 gets the latest on Elon Musk and Twitter, Karen, there 0:04:42.600 --> 0:04:45.799 is uncertainty creeping into Musk's plans to buy the company. Afterward, 0:04:45.880 --> 0:04:49.200 his offers contingent on a thirteen billion dollar debt financing 0:04:49.320 --> 0:04:52.799 Bloomberg's at Ludlow has more the concern is that Musque 0:04:52.800 --> 0:04:56.000 has this twelve point five billion dollars of debt split 0:04:56.080 --> 0:04:58.400 between a six point five billions all alone, three billion 0:04:58.400 --> 0:05:00.840 of un secured, three billion of security bonds. There's also 0:05:00.920 --> 0:05:04.000 revolving credit line in their times have changed since that 0:05:04.120 --> 0:05:06.840 deal and that package was agreed in April, and so 0:05:07.080 --> 0:05:09.840 I guess the concern in the background is the viability 0:05:09.920 --> 0:05:13.000 of that debt, Bloomberg said. Ludlow says the judges halting 0:05:13.040 --> 0:05:15.040 the court case to allow the deal to close. She 0:05:15.080 --> 0:05:18.320 says if the transaction isn't done by five pm ocs overy, 0:05:18.839 --> 0:05:21.679 new trial dates will be set for November. Now shares 0:05:21.680 --> 0:05:24.440 a Twitter rosen lie trading yesterday right now they are 0:05:24.440 --> 0:05:27.320 a little changed and see him a corporate news now, Nathan. 0:05:27.360 --> 0:05:29.920 We're seeing possible signs of a bigger downturn in tech. 0:05:30.240 --> 0:05:33.040 Chipmakers are warning of slowing demand, Samsung and a m 0:05:33.120 --> 0:05:35.880 D reporting earnings within hours of each other that widely 0:05:35.960 --> 0:05:39.799 missed estimates. The numbers come after Micron technology slash spending 0:05:39.880 --> 0:05:43.800 and output in hopes of stabilizing plunging prices, and Amazon's 0:05:43.800 --> 0:05:46.720 abandoning its home delivery robot Karen just the latest cut 0:05:46.800 --> 0:05:50.359 to its experimental projects. Bloomberg's Charlie Pellett has that story. 0:05:50.720 --> 0:05:53.159 It is the latest signed that the e commerce giant 0:05:53.320 --> 0:05:57.679 is starting to wind down experimental projects amidst slowing sales growth. 0:05:58.120 --> 0:06:01.920 According to a source, work on Scout, an autonomous machine 0:06:02.040 --> 0:06:05.279 launched about three years ago, has already been halted. An 0:06:05.320 --> 0:06:09.200 Amazon spokesperson said the Scout team was being disbanded and 0:06:09.320 --> 0:06:12.720 would be offered new jobs in the organization. A source 0:06:12.760 --> 0:06:15.800 says about four hundred people were working on the project 0:06:15.839 --> 0:06:20.520 globally in New York. Charlie pelt Bloomberg Daybreak Right, Charlie, thanks, 0:06:20.640 --> 0:06:23.359 let's not politics now, and the conflict in Ukraine. President 0:06:23.440 --> 0:06:25.880 Biden weighed in on the war at a fundraiser in 0:06:25.960 --> 0:06:28.760 New York, expressing concern of our Vladimir Putin's threats to 0:06:28.839 --> 0:06:31.760 use nuclear weapons. Biden called the threats real and says 0:06:31.800 --> 0:06:34.080 the US is trying to find an off ramp for Putin. 0:06:34.400 --> 0:06:37.320 Biden warrants that if Putin deployed nuclear weapons, it could 0:06:37.440 --> 0:06:40.760 lead to armageddon now. The President's also making announcements back 0:06:40.800 --> 0:06:42.600 here at Home Care, and earlier in the day, he 0:06:42.680 --> 0:06:46.280 announced a pardon for any American convicted of simple marijuana 0:06:46.320 --> 0:06:49.440 possession under the law. Too many lives have been upended 0:06:49.480 --> 0:06:52.400 because of our failed approach to marijuana. It's time that 0:06:52.520 --> 0:06:55.560 we right these wrong. President Biden's all surging governors to 0:06:55.600 --> 0:06:59.839 issue similar partons for state offenses involving marijuana. Sp futures 0:06:59.880 --> 0:07:02.320 are down one point right now. DAL futures are up 0:07:02.360 --> 0:07:05.880 forty two. Nastack futures are down forty two points ten. 0:07:05.960 --> 0:07:08.600 Your treasuries down four thirty seconds, you know three four 0:07:09.040 --> 0:07:13.200 Imex screwed up nine tenths percent at one barrel bitcoin 0:07:13.320 --> 0:07:16.080 right around twenty thous dollars. Straight ahead your latest local 0:07:16.120 --> 0:07:23.240 headlines in the check of sports. This is Bloomberg and 0:07:23.400 --> 0:07:25.440 it is now six so seven on Wall Street, sixty 0:07:25.480 --> 0:07:28.080 one degrees in Central Park. It is having both ways 0:07:28.120 --> 0:07:30.480 of the white Stone Bridge with an accident. Queen's bound 0:07:30.760 --> 0:07:33.160 details count up in traffic. First Michael Barr with what 0:07:33.240 --> 0:07:35.520 else is going on in New York and around the world. Michael, 0:07:35.600 --> 0:07:37.960 thank you very much, Nathan. Authorities in New York City State, 0:07:38.000 --> 0:07:40.920 ten people were injured, including two young children, when a 0:07:41.000 --> 0:07:44.760 police cruiser collided with another vehicle and crashed onto a sidebook. 0:07:45.120 --> 0:07:48.440 It happened yesterday afternoon in the Bronx at Westchester and 0:07:48.560 --> 0:07:52.280 who Avenues. NYPD Chief of Patrol Jeffrey Madre has said 0:07:52.280 --> 0:07:54.920 the patrol car was responding to a call and trying 0:07:54.960 --> 0:07:57.040 to get around a vehicle at an intersection when the 0:07:57.080 --> 0:08:00.280 crash happened. The officers crossed over the double yellow to 0:08:00.360 --> 0:08:03.720 go around the vehicle, but the vehicle made a left 0:08:03.760 --> 0:08:08.280 hand term, at which point the department vehicle and a 0:08:08.360 --> 0:08:12.440 sevil the civilian vehicle, they clicked each other. The m 0:08:12.480 --> 0:08:14.600 I p d. S. Jeffrey Madre says there are no 0:08:14.760 --> 0:08:17.680 major injuries. Officials in New York are looking at their 0:08:17.720 --> 0:08:20.400 next options after a federal judge struck down the stage 0:08:20.480 --> 0:08:24.520 new law banning guns in certain public places. The law 0:08:24.680 --> 0:08:27.280 was created in response to a Supreme Court ruling striking 0:08:27.320 --> 0:08:29.840 down another New York law that restricted who could own 0:08:29.880 --> 0:08:32.880 a gun and extremist groupie. There is now the first 0:08:32.960 --> 0:08:37.160 plead guilty to seditious conspiracy in the January sixth attack. 0:08:37.520 --> 0:08:39.920 A senior member of the Proud Boys admitted to planning 0:08:39.960 --> 0:08:43.280 a violent assault on the Capitol days before the January 0:08:43.400 --> 0:08:47.600 six insurrection. Jeremy Bertino has agreed to cooperate with federal 0:08:47.679 --> 0:08:51.440 investigators a gruesome crime on the Las Vegas Strip where 0:08:51.440 --> 0:08:54.760 police say eight people were stabbed in an unprovoked attack. 0:08:54.920 --> 0:08:58.000 At least two of the victims died. Las Vegas Metropolitan 0:08:58.080 --> 0:09:02.319 Police Deputy Chief James Labroschell that stabbing occurs quickly and 0:09:02.400 --> 0:09:07.120 the suspects subsequently goes a southbound on the sidewalk area 0:09:07.280 --> 0:09:11.360 and the staffs additional victims. H five victims there and 0:09:11.760 --> 0:09:14.480 um uh there was an additional victim on the south 0:09:14.559 --> 0:09:18.199 side of sands. Also, Deputy Chief La Rochelle says a 0:09:18.280 --> 0:09:22.120 suspect is in custody. Human rights and democracy worldwide where 0:09:22.160 --> 0:09:24.559 at the heart of this year's Nobel Peace Prize. The 0:09:24.640 --> 0:09:29.040 winners are a jailed Belarus activists, Russian human rights organization 0:09:29.120 --> 0:09:32.280 and the Ukrainian Civil Liberties group. Barat Reese Anderson is 0:09:32.320 --> 0:09:36.840 the chair of the Norwegian Nobel Committee. Alvis B. Elliotsky 0:09:37.480 --> 0:09:42.280 was one of the initiators of the democracy movement that 0:09:42.720 --> 0:09:48.040 emerged in Belarus in the mid nine eighties. Blatsky, the 0:09:48.320 --> 0:09:52.160 Russian group Memorial, and the Ukrainian organizations Center for Civil 0:09:52.240 --> 0:09:55.160 Liberties will share the prize. Global News twenty four hours 0:09:55.200 --> 0:09:57.559 a day on air and on Bloomberg Quick Take, powered 0:09:57.600 --> 0:10:00.360 by more than twenty seven journalists and that listed more 0:10:00.360 --> 0:10:04.240 than twenty countries. Michael Bart, this is Bloomberg, Na. Michael, 0:10:04.280 --> 0:10:11.079 thanks almost sixth ten on Wall Street time for the 0:10:11.080 --> 0:10:14.240 Bloomberg Sports Update with John Stas show. Thanks Day. It's 0:10:14.280 --> 0:10:16.040 the game the Mets did not want to play, did 0:10:16.080 --> 0:10:18.000 not think they were gonna have to play for most 0:10:18.080 --> 0:10:20.960 of the season, but they finished tied for first with Atlanta, 0:10:21.000 --> 0:10:23.599 who won the season series ten to nine. Unless the 0:10:23.640 --> 0:10:26.040 Braids sitting home today and the Mets getting ready to 0:10:26.040 --> 0:10:28.280 play Game one of the best of three Wild Cards 0:10:28.320 --> 0:10:31.640 series at City Field with San Diego Max Sers will 0:10:31.640 --> 0:10:33.440 be on the mountain for the Mets. You're just anxious 0:10:33.480 --> 0:10:34.920 to get out there. You're anxious to go out there 0:10:34.920 --> 0:10:37.400 and compete. Uh, you know, everything's on the line, win 0:10:37.520 --> 0:10:40.319 or go home. Um, you know that's the id you 0:10:40.360 --> 0:10:41.800 have to have. You have to win. I mean, you 0:10:41.840 --> 0:10:43.679 get in the postseason and every day it feels like 0:10:43.720 --> 0:10:46.280 it must win that you know, must win game. Um, 0:10:46.760 --> 0:10:49.640 whether it's an elimination game or not. He always choked 0:10:49.720 --> 0:10:51.720 up part like we got t wins today. You Darvis 0:10:51.800 --> 0:10:53.760 starts with the Padres, who won the season series with 0:10:53.800 --> 0:10:56.120 the Mets sport to two. The geek tonight comes after 0:10:56.280 --> 0:10:58.719 three day games started with Tampa Bay and Cleveland. The 0:10:58.720 --> 0:11:00.880 winner of that series then face is the Yankees. The 0:11:00.960 --> 0:11:04.400 Phillies play in St. Louis, Seattle is in Toronto, NFL, 0:11:04.440 --> 0:11:08.600 and Denver went to overtime. There were twelve punts, ten sacks, 0:11:08.760 --> 0:11:12.760 four interceptions and no touchdowns. Indianapolis kit core field goals. 0:11:12.800 --> 0:11:15.520 The Broncos had three. Indy held on at the end 0:11:15.600 --> 0:11:17.559 one twelve to nine to get its second one of 0:11:17.559 --> 0:11:19.480 the year. Denver dropped to two and three. Russell Wilson 0:11:19.559 --> 0:11:22.400 has struggled with his new team. Landon Collins back with 0:11:22.520 --> 0:11:25.160 his old top team three time Pro Bowl safety while 0:11:25.200 --> 0:11:28.079 with the Giants, then signed as a free agent with Washington. 0:11:28.240 --> 0:11:30.959 Collins was unsigned and though he won't play Sunday, he 0:11:31.040 --> 0:11:34.040 did fly with his new teammates to London for Sunday's 0:11:34.120 --> 0:11:37.160 game with Green Bay preseason last night, Islanders beat the 0:11:37.200 --> 0:11:40.319 Devils five to two. Season starts next week and at Barkley's. 0:11:40.400 --> 0:11:42.480 Then Nets got blown out by the heat in Miami 0:11:42.559 --> 0:11:45.679 one by twenty nine. John Stashi went Bloomberg Sports nuthan, 0:11:45.920 --> 0:11:48.520 thank you John. SMP future is now up one point 0:11:49.240 --> 0:11:52.280 sal features up sixty four now nastack Future still lower 0:11:52.360 --> 0:11:54.880 by thirty points ten. Your treasuries down three thirty seconds. 0:11:54.920 --> 0:11:59.040 Heal three point eight three percent ahead of September pay rolls, 0:11:59.720 --> 0:12:03.240 We've preview the jobs numbers. Next with Bloomberg's Michael McKee. 0:12:03.400 --> 0:12:09.920 This is Bloomberg Bloomberg eleven three oh weather sunny pleasant today, 0:12:09.960 --> 0:12:13.079 high your seventy five degrees, Lots of sunshine tomorrow, but 0:12:13.120 --> 0:12:16.120 it's gonna be cooler, only near sixty. We'll get into 0:12:16.160 --> 0:12:18.439 the low sixties by Sunday. Right now sixty one in 0:12:18.520 --> 0:12:24.960 Central Park Markets, headlines and breaking news twenty four hours 0:12:25.000 --> 0:12:28.199 a day at Bloomberg dot Com, the Bloomberg Business Outland, 0:12:28.320 --> 0:12:38.120 at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm 0:12:38.200 --> 0:12:42.120 Karen Moscow. US Dock Index futures, well they are. They've 0:12:42.120 --> 0:12:44.880 been moving around a bit this morning. SMP futures were 0:12:44.880 --> 0:12:47.240 a little change and now they're lower again. Ahead of 0:12:47.240 --> 0:12:49.640 the latest payrolls or board. Investors will be looking for 0:12:49.679 --> 0:12:52.160 clues on the monetary policy path. If you check the 0:12:52.200 --> 0:12:55.079 markets every fifteen minutes. Throughout the trading day on Bloomberg, 0:12:55.600 --> 0:12:58.720 SNP futures down down about five points down. Futures remain 0:12:58.800 --> 0:13:01.760 higher up twenty three and nasdays futures are down fifty 0:13:02.120 --> 0:13:04.360 The decks in Germany is down a tenth of upper cent. 0:13:04.440 --> 0:13:06.719 Ten year treasury down four thirty seconds. You have three 0:13:06.720 --> 0:13:08.600 point eight four percent the yield on the two year 0:13:08.679 --> 0:13:11.559 four point to seven percent. NIMEX screwed oil is of 0:13:11.720 --> 0:13:13.720 nine tenths of upper cent of seventy nine cents at 0:13:13.720 --> 0:13:16.439 eighty nine dollars, twenty four cents of barrel Comex school 0:13:16.440 --> 0:13:19.120 down a quarter percent or four dollars is seventeen sixteen 0:13:19.200 --> 0:13:22.360 eighty announce the euro point nine seven nine six against 0:13:22.400 --> 0:13:24.920 the dollar British found one point one to one and 0:13:25.040 --> 0:13:27.320 again one forty four point nine too. And look at 0:13:27.360 --> 0:13:30.880 a bitcoin, it's down sixtensive percent at nineteen thousand, nine 0:13:30.960 --> 0:13:33.760 hundred dollars. That's a Bloomberg business flash. Now here's Michael 0:13:33.800 --> 0:13:36.240 Barr with more on what's going on around the world. Michael, 0:13:36.920 --> 0:13:39.199 thank you very much, Darren. President Joe Biden says the 0:13:39.280 --> 0:13:42.680 risk of nuclear arma GEDTTON is at the highest level 0:13:42.760 --> 0:13:46.720 since the nineteen sixty two Cuban missile crisis. President Biden's 0:13:46.760 --> 0:13:50.360 comments come as Russian officials speak of the possibility of 0:13:50.480 --> 0:13:54.560 using tactical nuclear weapons in the eight month invasion of Ukraine. 0:13:54.960 --> 0:13:58.240 A jailed Belarusian human rights advocate won the Nobel Peace 0:13:58.320 --> 0:14:01.959 Prize this year, along with two organizations that protect civil 0:14:02.120 --> 0:14:07.080 society in Russia and Ukraine. Alice being Latsky from Belarus 0:14:07.320 --> 0:14:11.679 Memorial of Russia and Ukraine Center for Civil Liberties were 0:14:11.720 --> 0:14:14.480 awarded the prize today. In baseball, the Mats and the 0:14:14.520 --> 0:14:18.960 Padres start their wild card playoff series tonight. Thursday Night Football, 0:14:19.000 --> 0:14:21.480 the Colts beat the Broncos twelve nine in a game 0:14:21.560 --> 0:14:25.560 where no touchdowns were scored. Global News twenty four hours 0:14:25.600 --> 0:14:28.480 a day on air and on Bloomberg Quicktake, powered by 0:14:28.560 --> 0:14:31.200 more than twenty seven hundred journalists and analyists more than 0:14:31.200 --> 0:14:34.680 a hundred twenty countries. Michael bar this is Bloomberg, Nathan, 0:14:34.800 --> 0:14:37.280 Thanks Michael, six nineteen on Wall Street Life from the 0:14:37.360 --> 0:14:41.760 Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. As we 0:14:41.920 --> 0:14:45.320 keep score on this labor market, we get some very 0:14:45.480 --> 0:14:47.560 key numbers in just a couple hours. Here with the 0:14:47.640 --> 0:14:50.640 release of the September payrolls report. Ahead of that, we're 0:14:50.760 --> 0:14:54.600 joined this morning by Bloomberg Global Economics and Policy correspondent 0:14:54.920 --> 0:14:57.520 Michael McKee. Mike, good morning. Of course, the Fed is 0:14:57.600 --> 0:15:00.800 trying to soften this labor market. What kind of evidence 0:15:01.040 --> 0:15:03.600 of that softening are we expecting? Are we going to 0:15:03.720 --> 0:15:08.040 get it this morning? Well, attention to the second question. First, 0:15:08.120 --> 0:15:11.560 I don't know. Um, we'll find out at a thirty, 0:15:12.400 --> 0:15:16.000 but what they're looking for is a slowdown in the 0:15:16.080 --> 0:15:19.600 pace of hiring, not collapse, but a slowdown in The 0:15:19.800 --> 0:15:24.800 bloomar consensus for two thousand jobs would meet that target. 0:15:25.120 --> 0:15:26.760 They do think it will take a little bit longer 0:15:26.840 --> 0:15:29.240 for the unemployment rate to start going up because there 0:15:29.720 --> 0:15:32.480 are so many job openings that people who lose their 0:15:32.560 --> 0:15:36.920 jobs can find another job. One interesting thing to watch 0:15:37.080 --> 0:15:41.160 today will be whether we see any kind of similar 0:15:42.400 --> 0:15:45.160 move into the labor force. We got seven hundred and 0:15:45.720 --> 0:15:48.680 eight six thousand people who came into the labor force 0:15:48.760 --> 0:15:51.680 in August, which is an extraordinary number. Um. I don't 0:15:51.720 --> 0:15:53.800 think that will happen again, but if we do see that, 0:15:54.000 --> 0:15:57.280 that could push the unemployment rate lower. Now, because we have, 0:15:57.480 --> 0:16:01.120 of course seen some pretty up big upside surprises on 0:16:01.360 --> 0:16:03.920 payrolls in the last couple of months. Here is that 0:16:04.000 --> 0:16:08.600 a possibility still that we could get an outsized payrolls 0:16:08.680 --> 0:16:12.040 number this morning. Definitely a possibility, and there is a 0:16:13.120 --> 0:16:15.480 feeling among some on Wall Street that that's what we're 0:16:15.480 --> 0:16:19.320 going to get. Uh. They see strength in in a 0:16:19.400 --> 0:16:23.280 lot of the numbers that go into your guests about 0:16:23.360 --> 0:16:26.560 what payrolls are going to be. That would probably scare 0:16:26.600 --> 0:16:29.520 the pants off the markets, though, because then they start 0:16:29.640 --> 0:16:32.680 with the theme of the FED higher for longer. It 0:16:32.760 --> 0:16:35.720 depends on how much it is. We have seen payrolls 0:16:35.760 --> 0:16:39.320 come in higher than forecast for the past five months, 0:16:39.840 --> 0:16:42.320 but they have sequentially for the most part, been down 0:16:42.440 --> 0:16:46.200 in four of the five months. So if that continues, uh, 0:16:46.640 --> 0:16:49.240 then the Fed is happy even if it's a little 0:16:49.320 --> 0:16:52.200 bit above two fifty five. But if it's a lot 0:16:52.440 --> 0:16:55.160 we go well into the threes, then there is going 0:16:55.200 --> 0:16:58.160 to be concerned that the Fed's medicine isn't working yet. Now. 0:16:58.560 --> 0:17:02.480 The medicine, of course, is to get inflation down, but 0:17:02.960 --> 0:17:06.080 of course the FED also has a dual mandata price 0:17:06.119 --> 0:17:11.320 stability and maximum employment. It's a tricky balance for this 0:17:11.480 --> 0:17:15.000 Federal Reserve to strike it is, and the hard part 0:17:15.040 --> 0:17:17.520 for the FED is this is a labor market that 0:17:17.640 --> 0:17:21.720 has been very tight and companies have still been looking 0:17:21.800 --> 0:17:24.320 for workers. Now we're starting to see some of the 0:17:24.400 --> 0:17:28.280 job vacancies go away, and some companies are putting any 0:17:28.400 --> 0:17:32.080 hiring plans on hold, but there's still a lot of companies, 0:17:32.119 --> 0:17:35.600 particularly in leisure and hospitality, who haven't been able to 0:17:35.680 --> 0:17:39.040 fill all the jobs that they had coming out of 0:17:39.080 --> 0:17:42.320 the pandemic, who might still be looking to add workers. 0:17:42.800 --> 0:17:45.480 So there is a danger that we could see stronger 0:17:45.560 --> 0:17:49.600 than expected job growth, and that raises the possibility of 0:17:49.760 --> 0:17:52.760 stronger than expected wage growth as well. Is that something 0:17:52.800 --> 0:17:55.560 else you're looking out for. That's something else we're watching. 0:17:55.600 --> 0:17:58.240 The FAT, of course, wants to see, uh the average 0:17:58.280 --> 0:18:01.040 hourly earnings on a year over year basis start to 0:18:01.359 --> 0:18:03.800 fall back a little bit, not because they don't want 0:18:03.840 --> 0:18:05.560 you to get paid, but they don't want to wage 0:18:05.640 --> 0:18:09.400 price spiral, and they think that the five percent level 0:18:09.440 --> 0:18:14.760 we're at five point two percent annually last month is unsustainable. 0:18:14.840 --> 0:18:17.840 If you get to three percent, then that's a sustainable level, 0:18:17.880 --> 0:18:21.000 and it would fit with the level of inflation they're 0:18:21.040 --> 0:18:24.160 trying to get to. So they'll be watching that as well, 0:18:24.400 --> 0:18:27.720 and with labor markets still tight, it's very possible we 0:18:27.840 --> 0:18:30.760 see that exceeded. Now. We have, at least in an 0:18:30.800 --> 0:18:35.119 individual car company basis, heard a number of reports of 0:18:35.440 --> 0:18:38.440 layoffs coming in. Is that something that we could see 0:18:38.520 --> 0:18:40.280 play out in the data we've got about a minute 0:18:40.320 --> 0:18:44.360 left hand, Probably not so much. The number of companies 0:18:44.480 --> 0:18:47.639 who uh layoff people every month is very large. We 0:18:47.720 --> 0:18:49.520 see a big churn in the labor force, it's the 0:18:49.640 --> 0:18:53.880 net number that matters, and we haven't seen huge layoffs. 0:18:54.000 --> 0:18:57.480 We've just seen some, as you say, individual companies letting 0:18:57.520 --> 0:19:00.520 people go. More companies have said perhaps that they're not 0:19:00.680 --> 0:19:04.800 going to add anybody, but not uh, not fire anybody. 0:19:05.119 --> 0:19:07.000 That's kind of the next stage of things, which we 0:19:07.119 --> 0:19:09.840 might not see until next year. Thanks, Mike'll let you 0:19:09.920 --> 0:19:11.600 go get your wheaties. We know you'll be busy in 0:19:11.600 --> 0:19:14.120 the next couple hours here when those numbers come down 0:19:14.240 --> 0:19:17.480 eight thirty am. Wall Street Time, Bloomberg Global Economics and 0:19:17.600 --> 0:19:21.000 Policy correspondent Michael McKee will be back with us on 0:19:21.040 --> 0:19:24.080 Bloomberg Radio and Television to break down those numbers, and 0:19:24.240 --> 0:19:27.560 we will have analysis for you throughout the morning, including 0:19:27.640 --> 0:19:30.720 reaction from Labor Secretary Marty Wall. She's gonna join us 0:19:31.000 --> 0:19:34.440 in the nine am hour following the release of September payrolls. 0:19:34.760 --> 0:19:37.520 Tune back in for that conversation here on Bloomberg Radio, 0:19:37.560 --> 0:19:40.399 or you can watch it as we say on Bloomberg Television. 0:19:40.800 --> 0:19:44.840 Looking ahead to the market open Mixed action SMP futures 0:19:44.880 --> 0:19:49.200 down five points, STOW futures up twenty two NASDAC Future 0:19:49.280 --> 0:19:51.600 is moving lower, down fifty one point in the tenure 0:19:51.640 --> 0:19:54.640 Treasury is down five thirty seconds, yield three point eight 0:19:54.760 --> 0:19:59.680 four per cent. You're listening to Bloomberg Daybreak on this 0:20:00.200 --> 0:20:09.399 jobs Friday morning, Bloomberg eleven three oh weather, sunshine in 0:20:09.440 --> 0:20:11.800 a high near seventy five degrees to end this week, 0:20:11.880 --> 0:20:14.880 It's gonna be cooler, still sunny for the weekend. High 0:20:14.920 --> 0:20:18.679 near sixty tomorrow, low sixties on Sunday sixty one. Right 0:20:18.720 --> 0:20:24.639 now in Central Park Markets, headlines and breaking news twenty 0:20:24.680 --> 0:20:27.480 four hours a day at Bloomberg dot Com, to Bloomberg 0:20:27.560 --> 0:20:31.119 Business at and at Bloomberg Quick Tape. He's a Bloomberg 0:20:31.200 --> 0:20:39.920 Business Flash and I'm Karen Moscows and key. Futures that 0:20:39.960 --> 0:20:42.560 will change this morning ahead of this September jobs or four. 0:20:42.680 --> 0:20:44.440 Let's go to the first word Breaking news dance for 0:20:44.480 --> 0:20:48.240 today's morning call, and here's Bill Maloney. Bill, good morning, Hey, 0:20:48.440 --> 0:20:51.080 good morning, Karen. You as futures are trading mixed right now, 0:20:51.160 --> 0:20:53.480 with our futures higher by thirty eight points. Like you said, 0:20:53.560 --> 0:20:56.320 smp s are a little changed. Nastic futures are lower 0:20:56.440 --> 0:20:59.320 by thirty eight the US ten year to three point 0:20:59.440 --> 0:21:02.439 eight four percent, Gold is down three oil is climbing, 0:21:02.720 --> 0:21:05.440 and bigcoin is lower by half a percent. Hong Kong 0:21:05.560 --> 0:21:07.919 fell one and a half percent overnight, while up markets 0:21:07.960 --> 0:21:10.440 are quiet this morning. And back in the US on 0:21:10.480 --> 0:21:13.800 the economic front at the thirty v September jobs report, 0:21:14.040 --> 0:21:17.199 and at ten o'clock, who sell inventories After develous night 0:21:17.240 --> 0:21:20.119 am DS preliminary earning spell short of expectations by more 0:21:20.160 --> 0:21:23.000 than a billion shares, It down five point five percent 0:21:23.119 --> 0:21:25.719 pre market, and on these credit sweet aims to buy 0:21:25.760 --> 0:21:29.119 back three billion worth of debt. Wrapping things up, Goodman 0:21:29.160 --> 0:21:33.280 Sachs was raised to outperform over at KBW Live from 0:21:33.320 --> 0:21:36.280 the first Breaking News. That's scom Bill Maloney, Karen, all right, Bill, thanks, 0:21:36.320 --> 0:21:38.840 and here live breaking news over Bloomberg time, squawk on 0:21:38.880 --> 0:21:41.280 your terminal, s qu A w K and that's a 0:21:41.320 --> 0:21:44.040 Bloomberg business flash. Now here's Michael Barr with more un 0:21:44.080 --> 0:21:46.440 musk going on around the world. Michael Karen, thank you 0:21:46.560 --> 0:21:48.920 very much. President Joe Biden said the US is trying 0:21:48.960 --> 0:21:52.440 to find an off ramp for Russian President Vladimir Putin 0:21:52.880 --> 0:21:56.040