1 00:00:01,920 --> 00:00:05,199 Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 2 00:00:05,320 --> 00:00:09,360 Speaker 1: day Break for Thursday, October seven two. Coming up this hour, 3 00:00:09,680 --> 00:00:13,360 Speaker 1: shares of Meta plunge on another big tech earnings disappointment. 4 00:00:13,520 --> 00:00:16,599 Speaker 1: Apple and Amazon or up Next sent a report this afternoon. 5 00:00:16,800 --> 00:00:19,880 Speaker 1: Credit Suite sunveils a massive overhaul. We speak to the 6 00:00:19,920 --> 00:00:22,680 Speaker 1: bank CEO, and the European Central Bank is set to 7 00:00:22,760 --> 00:00:25,279 Speaker 1: raise rates to the highest level in more than a decade. 8 00:00:25,360 --> 00:00:29,600 Speaker 1: New Jersey Senator Menendez faces another federal investigation. Plus President 9 00:00:29,640 --> 00:00:32,760 Speaker 1: Biden warns Russia any nuclear attack but being an incredibly 10 00:00:32,840 --> 00:00:36,040 Speaker 1: serious mistake. I'm Michael bar More Ahead, I'm done, standsdown 11 00:00:36,080 --> 00:00:38,800 Speaker 1: Sports overtime at the Guard of the Nix speech Charlotte, 12 00:00:38,800 --> 00:00:43,519 Speaker 1: the Nets Loft in Milwaukee. The Islanders shut out the Rangers. 13 00:00:44,479 --> 00:00:48,720 Speaker 1: That's All's trading ahead on Bloomberg Daybreak on Bloomberg eleven, FREEO, 14 00:00:48,840 --> 00:00:53,279 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh 15 00:00:53,280 --> 00:00:57,840 Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Serious x 16 00:00:58,000 --> 00:01:00,880 Speaker 1: M one nine team, and around the world on Bloomberg 17 00:01:00,960 --> 00:01:07,839 Speaker 1: Radio dot Com and via The Bloomberg Business. Good morning, 18 00:01:07,840 --> 00:01:11,560 Speaker 1: I'm Nathan Hagar and I'm Karen Moscow and SMP futures 19 00:01:11,600 --> 00:01:13,920 Speaker 1: are higher this morning. We're coming up to five o 20 00:01:14,040 --> 00:01:15,800 Speaker 1: one on Wall Street, and we check the markets every 21 00:01:15,800 --> 00:01:19,680 Speaker 1: fifteen minutes throughout the trading day. On Bloomberg, SMP futures 22 00:01:19,760 --> 00:01:23,600 Speaker 1: up nine points down, futures of one Nasdack future is 23 00:01:23,680 --> 00:01:27,400 Speaker 1: lower down, twelve ten year treasury down fourteen thirty seconds, 24 00:01:27,440 --> 00:01:30,360 Speaker 1: held four point oh five percent, and they yield on 25 00:01:30,400 --> 00:01:34,040 Speaker 1: the two year four point four four percent. NIMEX screwed oil. 26 00:01:34,160 --> 00:01:38,640 Speaker 1: That'll change, Nathan Karen. We begin with another tech earnings disappointment. 27 00:01:38,880 --> 00:01:41,760 Speaker 1: A day after Microsoft and Google shares plunged. We are 28 00:01:41,760 --> 00:01:45,800 Speaker 1: seeing shares of meta platforms down almost twenty percent this morning. 29 00:01:46,200 --> 00:01:48,640 Speaker 1: The Facebook owner gave a revenue forecast on the low 30 00:01:48,760 --> 00:01:51,320 Speaker 1: end of estimates, and we get more from Bloomberg's Ludlow 31 00:01:51,480 --> 00:01:53,680 Speaker 1: in our nine sixty news room in San Francisco. What 32 00:01:53,840 --> 00:01:56,640 Speaker 1: spooked investors, at least in the first instance, was the 33 00:01:56,640 --> 00:02:00,000 Speaker 1: tepid forecast met To gave for sales in the current period. 34 00:02:00,160 --> 00:02:03,320 Speaker 1: Revenue will be between thirty and thirty two point five 35 00:02:03,360 --> 00:02:06,200 Speaker 1: billion dollars in the final three months of this year, 36 00:02:06,480 --> 00:02:09,320 Speaker 1: below street expectations. And the story is when we know 37 00:02:09,440 --> 00:02:12,760 Speaker 1: the softening ad market is hurting meta. We went into 38 00:02:12,840 --> 00:02:14,960 Speaker 1: this knowing that would be the case, but as the 39 00:02:15,000 --> 00:02:17,760 Speaker 1: cool started and went on, it became clear that actually 40 00:02:17,760 --> 00:02:22,600 Speaker 1: what spooking investors is Meta and Zuckerberg's commitment to fuel 41 00:02:22,680 --> 00:02:26,920 Speaker 1: and fund this transition to the metaverse. Zuckerberg said that actually, 42 00:02:26,919 --> 00:02:30,080 Speaker 1: on a year on year basis, Meta reality labs would 43 00:02:30,080 --> 00:02:33,760 Speaker 1: continue to have growing losses above lowth for Bloomberg News 44 00:02:33,880 --> 00:02:38,160 Speaker 1: in San Francisco, alright, thanks, and big tech earnings continue today. 45 00:02:38,200 --> 00:02:40,679 Speaker 1: We have a pair of giants reporting this afternoon, and 46 00:02:40,720 --> 00:02:44,440 Speaker 1: Bloomberg Jeff Bellinger has more. Apple and Amazon are both 47 00:02:44,440 --> 00:02:47,840 Speaker 1: scheduled to report after the market's closed today. Analysts at 48 00:02:47,880 --> 00:02:51,519 Speaker 1: went Bush Securities say higher iPhone prices and an improving 49 00:02:51,560 --> 00:02:55,040 Speaker 1: supply chain may have helped Apple beat revenue forecast. The 50 00:02:55,200 --> 00:02:59,359 Speaker 1: of Ase Securities says Amazon likely posted faster revenue growth 51 00:02:59,400 --> 00:03:03,200 Speaker 1: for unline stores and third party sellers, but both companies 52 00:03:03,240 --> 00:03:06,359 Speaker 1: face headwinds. Ample is dealing with the stronger dollar and 53 00:03:06,440 --> 00:03:09,359 Speaker 1: weakness in China, and a whole hum second Prime Day 54 00:03:09,400 --> 00:03:13,840 Speaker 1: event at Amazon suggested more spending is going offline. Jeff 55 00:03:13,840 --> 00:03:17,320 Speaker 1: Bellinger Bloomberg day break all right, Jeff. Thanks. As Karen mentioned, 56 00:03:17,360 --> 00:03:19,840 Speaker 1: US futures are higher ahead of those earnings, and despite 57 00:03:20,000 --> 00:03:23,400 Speaker 1: disappointing earnings from Meta. Morgan Stanley's Mike Wilson is a 58 00:03:23,440 --> 00:03:27,000 Speaker 1: well known stock market skeptic could correctly predicted this year's slump. 59 00:03:27,200 --> 00:03:29,680 Speaker 1: Now he thinks the bear market in US equities could 60 00:03:29,680 --> 00:03:32,720 Speaker 1: conclude sooner than many think. Ultimately, the bear market will 61 00:03:32,760 --> 00:03:35,080 Speaker 1: be over, probably some time in the first quarter. Now, 62 00:03:35,120 --> 00:03:37,600 Speaker 1: all of this is, you know, subject to revision, right, 63 00:03:37,800 --> 00:03:39,600 Speaker 1: So I want to make it perfectly clear. If the 64 00:03:39,640 --> 00:03:42,760 Speaker 1: market starts to trade off again and the SMP breaks 65 00:03:42,800 --> 00:03:45,560 Speaker 1: down and blows through thirty six fifty on the down side, 66 00:03:45,840 --> 00:03:49,080 Speaker 1: will be bearish again. Morgan Stanley's Mike Wilson was ranked 67 00:03:49,080 --> 00:03:53,520 Speaker 1: the number one portfolio strategist in the latest Institutional Investors survey. 68 00:03:53,640 --> 00:03:56,440 Speaker 1: Well in Europe, nathan A Bank and turmoil is front 69 00:03:56,480 --> 00:03:59,840 Speaker 1: and center. This morning, shares of Credit Suite are lower, 70 00:04:00,040 --> 00:04:03,480 Speaker 1: down more than fourteen percent. The Swiss bank is unveiling 71 00:04:03,480 --> 00:04:06,320 Speaker 1: a massive turnaround plan, which includes a four billion dollar 72 00:04:06,400 --> 00:04:09,280 Speaker 1: capital raised, a carve out of its investment bank, and 73 00:04:09,320 --> 00:04:12,480 Speaker 1: thousands of job cuts. It's the most urgent attempt yet 74 00:04:12,520 --> 00:04:15,960 Speaker 1: to repair credit suite after huge losses and management chaos. 75 00:04:16,279 --> 00:04:19,039 Speaker 1: And we spoke this morning with CEO all Rich Kroner. 76 00:04:19,360 --> 00:04:23,000 Speaker 1: What does new credits face. You know, it's a much simpler, 77 00:04:23,200 --> 00:04:27,760 Speaker 1: more stable, much more focused bank going forward, which will 78 00:04:27,800 --> 00:04:35,120 Speaker 1: deliver sustainably profitable results to our shareholders. Credit Swite CEO 79 00:04:35,279 --> 00:04:37,400 Speaker 1: l Rich Kroner made the comments in an interview with 80 00:04:37,440 --> 00:04:40,719 Speaker 1: Bloomberg's France Lockwise. Stay tuned for more of that conversation 81 00:04:40,800 --> 00:04:44,159 Speaker 1: coming up shortly. On Bloomberg daybreaking, Let's stay in Europe, Karen, 82 00:04:44,200 --> 00:04:46,520 Speaker 1: because it's a big day for the European Central Bank. 83 00:04:46,600 --> 00:04:48,840 Speaker 1: The e c V is expected to lift its main 84 00:04:48,920 --> 00:04:51,680 Speaker 1: interest rate to its highest level in more than a decade. 85 00:04:51,720 --> 00:04:55,279 Speaker 1: We get a preview from Bloomberg's Lean Garrants seventy basis 86 00:04:55,320 --> 00:04:59,320 Speaker 1: point hike is a consensus view for today's policy decision 87 00:04:59,440 --> 00:05:02,839 Speaker 1: from the CP. Anything else would be a big surprise, 88 00:05:02,920 --> 00:05:07,479 Speaker 1: so looking past the recession fears to keep targeting inflation. 89 00:05:08,040 --> 00:05:11,720 Speaker 1: Less clear though, is whether we'll get any indications around 90 00:05:11,720 --> 00:05:16,040 Speaker 1: the timeline for quantitative tightening, and something investors are watching 91 00:05:16,160 --> 00:05:19,640 Speaker 1: closely any moves to limit the games banks on making 92 00:05:19,680 --> 00:05:23,880 Speaker 1: from the ECBs crisis program of cheap loans in London. 93 00:05:24,000 --> 00:05:27,640 Speaker 1: I'm Leanne Geron's Bloomberg Daybreak, Leanne. Thanks. Back here. In 94 00:05:27,640 --> 00:05:30,520 Speaker 1: the US, economic growth is in focus. The government issues 95 00:05:30,600 --> 00:05:33,760 Speaker 1: data on third quarter GDP this morning. Forecast call for 96 00:05:33,839 --> 00:05:36,560 Speaker 1: a gain of two point four percent, and Bloomberry's Vinydale 97 00:05:36,640 --> 00:05:39,919 Speaker 1: Judai says more GDP posted back to back losses in 98 00:05:39,960 --> 00:05:43,159 Speaker 1: the first and second quarters. Bloomberg Economics says the third 99 00:05:43,240 --> 00:05:47,480 Speaker 1: quarters headline reabound may conceal trouble in the details, such 100 00:05:47,520 --> 00:05:50,760 Speaker 1: as sales and business inventorys. There are other U s 101 00:05:50,880 --> 00:05:54,680 Speaker 1: data on tap today. Manufacturing data factory owners for durable 102 00:05:54,720 --> 00:05:58,920 Speaker 1: goods may indicate moderation, reflecting US inflation fears in the 103 00:05:59,000 --> 00:06:02,640 Speaker 1: US labor market. Bloomberg Economics is weekly jobless claims will 104 00:06:02,640 --> 00:06:07,279 Speaker 1: probably continue to hover around historic clothes. They Bloomberg day Break, 105 00:06:07,440 --> 00:06:10,120 Speaker 1: Thanks and he Let's turn to geopolitics. Now the potential 106 00:06:10,160 --> 00:06:13,920 Speaker 1: setback for President Biden's economic pressure on Russia. The administration 107 00:06:14,000 --> 00:06:16,520 Speaker 1: is now being forced to rework its plans for price 108 00:06:16,600 --> 00:06:19,839 Speaker 1: caps on Russian oil. Bloomberg said, Baxter has the story. 109 00:06:20,160 --> 00:06:22,240 Speaker 1: It looks like they're going to have to scale back 110 00:06:22,279 --> 00:06:24,880 Speaker 1: their plans, and light of the volatility in the markets, 111 00:06:25,320 --> 00:06:28,640 Speaker 1: instead of strangling the Kremlin's oil revenues by imposing a 112 00:06:28,720 --> 00:06:32,640 Speaker 1: strict lid on prices, US and European Union are likely 113 00:06:32,680 --> 00:06:35,280 Speaker 1: to have to settle for more loosely police cap at 114 00:06:35,320 --> 00:06:38,520 Speaker 1: a higher price than once. In vision and earlier iteration 115 00:06:38,560 --> 00:06:40,840 Speaker 1: of the plan had the cap and the range of 116 00:06:40,880 --> 00:06:43,839 Speaker 1: forty to sixty dollars per barrel, but now it looks 117 00:06:43,880 --> 00:06:46,760 Speaker 1: like it will have to be much higher. In San Francisco, 118 00:06:46,880 --> 00:06:49,719 Speaker 1: I'm at Baxter Bloomberg day break, right and thanks, And finally, 119 00:06:49,760 --> 00:06:52,760 Speaker 1: the world's richest man is telling Twitter employees he does 120 00:06:52,800 --> 00:06:56,240 Speaker 1: not plan to cut se a staff. Bloomberg News has 121 00:06:56,279 --> 00:06:59,080 Speaker 1: learned that Elon must denied those numbers and an address 122 00:06:59,120 --> 00:07:02,120 Speaker 1: to workers at the come anat San Francisco office. Still, 123 00:07:02,160 --> 00:07:05,360 Speaker 1: the billionaire is still expected to cut some staff when 124 00:07:05,360 --> 00:07:08,880 Speaker 1: he takes over the company. Billion dollar deal is expected 125 00:07:08,920 --> 00:07:12,920 Speaker 1: to close tomorrow again. SMP futures are higher this morning. 126 00:07:13,200 --> 00:07:17,080 Speaker 1: Straight ahead your latest local headlines plus a check of sports. 127 00:07:17,160 --> 00:07:24,040 Speaker 1: And this is Bloomberg. I think you're carrying. It's five 128 00:07:24,080 --> 00:07:26,200 Speaker 1: oh seven on Wall Street, It's fifty eight degrees in 129 00:07:26,320 --> 00:07:29,440 Speaker 1: Central Park and it's problematic on westbound eighty. We've got 130 00:07:29,440 --> 00:07:33,280 Speaker 1: an overturned tractor trailer by exit thirty five. Michael Bars 131 00:07:33,320 --> 00:07:35,120 Speaker 1: here with more on what's going on in New York 132 00:07:35,120 --> 00:07:37,680 Speaker 1: and around the world. Good morning, Michael, Good morning Nathan. 133 00:07:37,680 --> 00:07:42,680 Speaker 1: New Jersey Democratic Senator Robert Menendez faces another federal investigation 134 00:07:42,720 --> 00:07:46,800 Speaker 1: about five years after a trial on federal corruption charges 135 00:07:46,840 --> 00:07:51,240 Speaker 1: and into a mistrial. Menendez advisor says Senator Menendez is 136 00:07:51,280 --> 00:07:54,440 Speaker 1: aware of an investigation. However, he does not know the 137 00:07:54,480 --> 00:07:58,040 Speaker 1: scope of the investigation. The probe is being conducted by 138 00:07:58,120 --> 00:08:01,800 Speaker 1: federal prosecutors in the Southern District of New York. President 139 00:08:01,880 --> 00:08:05,800 Speaker 1: Joe Biden warned Russias of Vladimir Putin that any use 140 00:08:05,840 --> 00:08:09,200 Speaker 1: of a nuclear weapon would be an incredibly serious mistake. 141 00:08:09,880 --> 00:08:13,480 Speaker 1: It comes as Russia says it carried out military exercises 142 00:08:13,720 --> 00:08:18,280 Speaker 1: simulating a retaliatory nuclear strike. Meanwhile, former U s Special 143 00:08:18,320 --> 00:08:22,880 Speaker 1: Representative for Ukraine negotiations and former Ambassador to NATO Kurt 144 00:08:22,960 --> 00:08:27,480 Speaker 1: Volker talked about Russia's claims without evidence that Kiev's forces 145 00:08:27,600 --> 00:08:30,320 Speaker 1: intend to use a so called dirty bomb. But what 146 00:08:30,400 --> 00:08:33,559 Speaker 1: Putin is doing is he is trying to get inside 147 00:08:33,600 --> 00:08:36,520 Speaker 1: the heads of leaders in the West to make them 148 00:08:36,559 --> 00:08:39,400 Speaker 1: feel that this is too dangerous and we have to 149 00:08:39,400 --> 00:08:42,720 Speaker 1: tell the Ukrainians to surrender somehow, give up territory, you know, 150 00:08:43,120 --> 00:08:47,600 Speaker 1: concede to prouting something. Former NATO ambassador Kurt Volker spoke 151 00:08:47,679 --> 00:08:50,880 Speaker 1: on sound on which hairs at five pm on Bloomberg, 152 00:08:51,240 --> 00:08:55,640 Speaker 1: Iranian security forces opened fire on protesters. In the past 153 00:08:55,679 --> 00:08:58,480 Speaker 1: forty days, thousands of people have taken to the streets 154 00:08:58,480 --> 00:09:00,959 Speaker 1: to denounce the depth of a twenty two year old 155 00:09:01,000 --> 00:09:04,600 Speaker 1: woman in custody of the country's morality police. She was 156 00:09:04,640 --> 00:09:09,240 Speaker 1: accused of breaking iran strict dress code. State Department spokesperson 157 00:09:09,440 --> 00:09:13,679 Speaker 1: Vendent Patel reiterated the u S efforts to support protesters 158 00:09:13,679 --> 00:09:16,720 Speaker 1: in more than one hundred cities in Iran. The regime's ongrowing, 159 00:09:16,960 --> 00:09:22,479 Speaker 1: violent crackdown, pervasive surveillance of citizens, and disruption of communications 160 00:09:22,880 --> 00:09:26,400 Speaker 1: are the latest reminder of the Islamic Republic's flavor and 161 00:09:26,480 --> 00:09:31,000 Speaker 1: disregard for the fundamental freedoms and human rights of Iranians. 162 00:09:31,000 --> 00:09:34,280 Speaker 1: Spokesman Patel says Iran's leadership is facing a problem of 163 00:09:34,320 --> 00:09:37,560 Speaker 1: its own making. With just weeks until the mid term elections. 164 00:09:37,559 --> 00:09:40,080 Speaker 1: The second woman has come forward claiming that she got 165 00:09:40,120 --> 00:09:43,320 Speaker 1: pregnant and then had an abortion paid for by Georgia 166 00:09:43,360 --> 00:09:47,920 Speaker 1: GOP senate candidate Herschel Walker. Walker addressed Jane Doe's allegations 167 00:09:48,000 --> 00:09:51,200 Speaker 1: during the campaign events, saying he is done with this foolishness. 168 00:09:51,720 --> 00:09:54,360 Speaker 1: Global News twenty four hours a day on air and 169 00:09:54,480 --> 00:09:57,800 Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred 170 00:09:57,840 --> 00:10:00,920 Speaker 1: journalists analysts more than a hundred twenty countries. Michael Barron, 171 00:10:01,040 --> 00:10:08,679 Speaker 1: this is Bloomberg, Nathan, Thanks Michael, five O nine on 172 00:10:08,720 --> 00:10:10,760 Speaker 1: Wall Street. Time for the Bloomberg Sports up tape. Prouty 173 00:10:10,840 --> 00:10:13,720 Speaker 1: by Tri State Autie. Good morning, John stash alright, good morning, Nathan. 174 00:10:13,760 --> 00:10:16,480 Speaker 1: The Knixer back this season with pretty much the same roster, 175 00:10:16,600 --> 00:10:19,400 Speaker 1: with one except of the initiative Jalen brunts in the 176 00:10:19,440 --> 00:10:21,959 Speaker 1: new Knick point guard on display at the Guard and 177 00:10:22,040 --> 00:10:26,160 Speaker 1: twenty seven points, thirteen assists, seven rebounds, Nick's peach Charlotte 178 00:10:26,200 --> 00:10:28,560 Speaker 1: one thirty four, one thirty one and overtime. They're up 179 00:10:28,559 --> 00:10:31,080 Speaker 1: to a three and one start, worth noting they began 180 00:10:31,160 --> 00:10:33,199 Speaker 1: last season five and one and still ended up being 181 00:10:33,200 --> 00:10:35,000 Speaker 1: a down year, missing the cliff. The Nets are just 182 00:10:35,040 --> 00:10:38,160 Speaker 1: one and three lost in Milwaukee one ten ninety nine 183 00:10:38,240 --> 00:10:40,760 Speaker 1: too much. Jana's Sons of the Cup of forty three points, 184 00:10:40,800 --> 00:10:43,880 Speaker 1: Kevin Duran had thirty three. Steve Nash got ejected for 185 00:10:43,880 --> 00:10:46,120 Speaker 1: the first time in his coaching career. Lebron James had 186 00:10:46,160 --> 00:10:48,920 Speaker 1: not started a season oh and four since his rookie 187 00:10:49,000 --> 00:10:51,559 Speaker 1: year in Cleveland twenty years ago. Lakers are owing four 188 00:10:51,600 --> 00:10:54,640 Speaker 1: they lost in tender. Rangers started three and one. They've 189 00:10:54,640 --> 00:10:57,280 Speaker 1: lost their last four. I've score only five goals over 190 00:10:57,320 --> 00:10:59,800 Speaker 1: those four games. Shut out at the Ubs Arena by 191 00:10:59,840 --> 00:11:03,000 Speaker 1: the Islanders, Elias Aurokan, Kyle Palm Mary scoring twice the 192 00:11:03,000 --> 00:11:05,959 Speaker 1: Aisles one three to nothing. Weake eight starts tonight at 193 00:11:05,960 --> 00:11:08,120 Speaker 1: Tampa Bay, where Tom Brady and the Bucks are just 194 00:11:08,200 --> 00:11:11,120 Speaker 1: three and four. They taken on Baltimore Giants. Look for 195 00:11:11,160 --> 00:11:13,600 Speaker 1: US seven and one start Sunday and see. I had 196 00:11:13,640 --> 00:11:16,560 Speaker 1: a lot of reasons for the Giants improvement. One is 197 00:11:16,600 --> 00:11:19,760 Speaker 1: certainly Daniel Jones, having thrown only two in reception. I'm 198 00:11:19,760 --> 00:11:21,640 Speaker 1: trying to make quicker decisions, trying to get the ball 199 00:11:21,640 --> 00:11:23,319 Speaker 1: out of my hands as as soon as possible. I 200 00:11:23,360 --> 00:11:26,080 Speaker 1: don't think that's any different from uh things I've done 201 00:11:26,120 --> 00:11:28,080 Speaker 1: in the past. I think you know you're you're better 202 00:11:28,120 --> 00:11:30,240 Speaker 1: at it every week and and I'm certainly better at 203 00:11:30,240 --> 00:11:33,360 Speaker 1: it and I've been in the past. So uh, that's 204 00:11:33,360 --> 00:11:35,040 Speaker 1: the goal for me, is it. Can you continue to 205 00:11:35,040 --> 00:11:37,439 Speaker 1: be quicker and and uh make the right decision and 206 00:11:37,440 --> 00:11:39,000 Speaker 1: get the ball in my hand? And Jones just named 207 00:11:39,120 --> 00:11:42,240 Speaker 1: NFC Offensive Player of the Way hal Steinbrenner's first comment 208 00:11:42,320 --> 00:11:44,200 Speaker 1: since the end of the season. The Yankees owner said 209 00:11:44,240 --> 00:11:48,280 Speaker 1: he doesn't see the Yanks not keeping manager John snashowar 210 00:11:48,320 --> 00:11:52,000 Speaker 1: Boomberg Sports John, Thank you. SFP futures are up seven 211 00:11:52,000 --> 00:11:54,800 Speaker 1: points down. Futures up a hundred thirty eight. Nastec features 212 00:11:54,800 --> 00:11:58,040 Speaker 1: are lower down twenty one points. Meta platform shares down 213 00:11:58,040 --> 00:12:02,720 Speaker 1: nearly twenty percent on earnings. Bloomberg quick takes alex Web 214 00:12:02,800 --> 00:12:07,679 Speaker 1: joins us next on Meta. This is Bloomberg and the 215 00:12:07,679 --> 00:12:09,920 Speaker 1: Bloomberg Sports Report was brought to you by Audie. Don't 216 00:12:10,000 --> 00:12:12,160 Speaker 1: let someone else drive off in the autie model you've 217 00:12:12,200 --> 00:12:14,800 Speaker 1: always wanted. Visit your local Frice State autie dealer to 218 00:12:14,840 --> 00:12:18,000 Speaker 1: get behind the wheel of yours today, or visit autie 219 00:12:18,000 --> 00:12:23,880 Speaker 1: Offers dot com for more information, markets, headlines, and breaking 220 00:12:23,920 --> 00:12:26,800 Speaker 1: new ones. Twenty four hours a day, at Bloomberg dot Com, 221 00:12:26,920 --> 00:12:30,480 Speaker 1: the Bloomberg Business at and at Bloomberg Quick Tape. He's 222 00:12:30,480 --> 00:12:39,480 Speaker 1: a Bloomberg Business flash and I'm fared. Moscow stocks are 223 00:12:39,520 --> 00:12:42,360 Speaker 1: slipping in US Dock Index futures are pairing gains as 224 00:12:42,400 --> 00:12:45,480 Speaker 1: traders digest a flurry of major earnings and prepare for 225 00:12:45,480 --> 00:12:49,439 Speaker 1: another jumbo European Central Bank rate hike later today. We 226 00:12:49,559 --> 00:12:52,040 Speaker 1: checked the markets every fifteen minutes throughout the trading day 227 00:12:52,120 --> 00:12:54,880 Speaker 1: on Bloomberg Right now S and P futures they're up 228 00:12:54,880 --> 00:12:58,960 Speaker 1: about eight points down. Futures at six and NASDACK futures 229 00:12:58,960 --> 00:13:02,200 Speaker 1: are lower, down twenty five the decks in Germany's down 230 00:13:02,200 --> 00:13:05,280 Speaker 1: four tenths of upper set. Can your treasury down fourteen 231 00:13:05,320 --> 00:13:07,719 Speaker 1: thirty seconds? You had four point six percent in the 232 00:13:07,840 --> 00:13:10,480 Speaker 1: yield on the two year four point four four percent 233 00:13:11,000 --> 00:13:13,280 Speaker 1: nine x Screwed oil is little change this morning at 234 00:13:13,280 --> 00:13:16,040 Speaker 1: eighty seven dollars eighty eight cents of barrel comax s 235 00:13:16,040 --> 00:13:18,120 Speaker 1: gold is down about two tens of upper cent or 236 00:13:18,160 --> 00:13:21,680 Speaker 1: two dollars ninety cents at sixteen sixty six. Forty announced 237 00:13:22,040 --> 00:13:25,280 Speaker 1: the euro one point zero zero five zero against the dollar, 238 00:13:25,360 --> 00:13:27,520 Speaker 1: British bound one point one f h two and the 239 00:13:27,679 --> 00:13:30,440 Speaker 1: end one forty six point to three. I'm looking at 240 00:13:30,480 --> 00:13:33,320 Speaker 1: bitcoin this morning, down six tens of a percent at 241 00:13:33,360 --> 00:13:36,720 Speaker 1: twenty thousand, six hundred dollars. That's a Bloomberg business flash. 242 00:13:36,720 --> 00:13:38,840 Speaker 1: Now here's Michael Barr with more on what's going on 243 00:13:38,880 --> 00:13:41,960 Speaker 1: around the world. Michael, good morning, Good morning, Karen. Russia 244 00:13:42,000 --> 00:13:47,360 Speaker 1: carried out military exercises simulating a retaliatory nuclear strike, as 245 00:13:47,400 --> 00:13:50,240 Speaker 1: President Joe Biden warned Vladimir Putin than any use of 246 00:13:50,280 --> 00:13:54,960 Speaker 1: a nuclear weapon would be an incredibly serious mistake. Secretary 247 00:13:55,000 --> 00:13:58,480 Speaker 1: of State Anthony B. Lincoln accused China of underminding the 248 00:13:58,520 --> 00:14:01,680 Speaker 1: decades long status quo that has kept both nations from 249 00:14:01,679 --> 00:14:05,320 Speaker 1: going to war over Taiwan, same Beijing was trying to 250 00:14:05,440 --> 00:14:08,600 Speaker 1: speed up at seizure of the island. A second woman 251 00:14:08,600 --> 00:14:13,240 Speaker 1: that's come forward claiming Georgia's Senate candidate, Herschel Walker paid 252 00:14:13,280 --> 00:14:16,280 Speaker 1: for her to have an abortion. Walker denied the allegations, 253 00:14:16,280 --> 00:14:19,240 Speaker 1: saying I am done with this foolishness. In the NBA, 254 00:14:19,400 --> 00:14:22,480 Speaker 1: the next one in overtime over the Hornets one one. 255 00:14:23,080 --> 00:14:26,920 Speaker 1: The Nets lost. In hockey, the Islanders blanked Rangers three zip. 256 00:14:27,080 --> 00:14:30,280 Speaker 1: Thursday Night football, the Ravens take on the Buccaneers Global 257 00:14:30,320 --> 00:14:32,680 Speaker 1: News twenty four hours a day on air and on 258 00:14:32,760 --> 00:14:36,240 Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred 259 00:14:36,280 --> 00:14:38,720 Speaker 1: journalists and analysts more than a hundred twenty countries. How 260 00:14:38,800 --> 00:14:41,680 Speaker 1: Michael Barrow, this is Bloomberg, Nathan, Thanks Michael. It's five 261 00:14:41,760 --> 00:14:44,920 Speaker 1: nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 262 00:14:45,000 --> 00:14:47,680 Speaker 1: This is Bloomberg Daybreak, and we continue to watch shares 263 00:14:47,760 --> 00:14:50,520 Speaker 1: of Facebook parent Meta platforms. They're getting punished in the 264 00:14:50,520 --> 00:14:53,880 Speaker 1: pre market this morning, down twenty percent on a disappointing 265 00:14:53,920 --> 00:14:58,560 Speaker 1: revenue forecast. But maybe the shift away from Facebook for 266 00:14:58,600 --> 00:15:03,120 Speaker 1: CEO Mark Zuckerberg the giving investors some indigestion this morning. 267 00:15:03,160 --> 00:15:06,320 Speaker 1: Let's bring in Bloomberg Quick Take correspondent Alex Web for 268 00:15:06,480 --> 00:15:10,800 Speaker 1: more on the Metal platforms story. Alex, good morning. Uh, 269 00:15:10,840 --> 00:15:15,520 Speaker 1: this long term play towards the metaverse is a really 270 00:15:15,800 --> 00:15:19,600 Speaker 1: untested bed, isn't it. Yes? And that is fundamentally what 271 00:15:19,640 --> 00:15:23,040 Speaker 1: he's driving the shares down because from a sales perspective, 272 00:15:23,480 --> 00:15:28,680 Speaker 1: Meta outperformed the market's expectations. Uh, it's the cost piece 273 00:15:28,840 --> 00:15:33,360 Speaker 1: which is really driven them way down below expectations on 274 00:15:33,360 --> 00:15:35,320 Speaker 1: on all the profit measures of there's a little bit 275 00:15:35,320 --> 00:15:37,200 Speaker 1: on the outlook, which clearly is not good news, but 276 00:15:37,720 --> 00:15:39,840 Speaker 1: you know that probably plays into it as well, because 277 00:15:39,920 --> 00:15:43,920 Speaker 1: they're investing, of course, partly in the competing products to TikTok, 278 00:15:44,640 --> 00:15:48,320 Speaker 1: but largely in this metaverse effort, which is hardware and 279 00:15:48,400 --> 00:15:52,080 Speaker 1: software and a colossal lift for the company. Now CEO 280 00:15:52,160 --> 00:15:54,640 Speaker 1: Mark Zuckerberg in the past has you know, come to 281 00:15:54,760 --> 00:15:57,080 Speaker 1: investors and said, you know, be patient, We've got a 282 00:15:57,120 --> 00:15:59,920 Speaker 1: long term strategy here. And in the past it's kind 283 00:16:00,000 --> 00:16:03,160 Speaker 1: they paid off. When you think about how Facebook has 284 00:16:03,160 --> 00:16:05,960 Speaker 1: been able to sort of copy the way it's competitors 285 00:16:05,960 --> 00:16:09,400 Speaker 1: to do business and capitalize on that. Is this a 286 00:16:09,440 --> 00:16:14,040 Speaker 1: different scenario though, for asking investors to be patient on 287 00:16:14,080 --> 00:16:16,320 Speaker 1: the prospects of a of a whole new way of 288 00:16:16,360 --> 00:16:19,280 Speaker 1: looking at the Internet. I think so because of the 289 00:16:19,320 --> 00:16:21,520 Speaker 1: capital intensity. You know, when he was pivoting the company 290 00:16:21,560 --> 00:16:23,800 Speaker 1: towards mobile as he did, you know, that's part of 291 00:16:23,800 --> 00:16:27,440 Speaker 1: a decade ago. Yes, it was gearing everything the company 292 00:16:27,440 --> 00:16:29,600 Speaker 1: did towards a particular product, but it was still a 293 00:16:29,640 --> 00:16:33,800 Speaker 1: software product, right, It was still just changing the things 294 00:16:33,800 --> 00:16:37,360 Speaker 1: you're already doing. This is an entirely new product. Category, 295 00:16:37,560 --> 00:16:40,600 Speaker 1: and it is hardware, which costs a lot more to develop. 296 00:16:41,440 --> 00:16:44,400 Speaker 1: The play is going to be a lot longer as well. 297 00:16:44,440 --> 00:16:46,000 Speaker 1: You know, they're able to pivot to mobile in the 298 00:16:46,040 --> 00:16:48,440 Speaker 1: space of a year or two. There's pieces of the 299 00:16:48,480 --> 00:16:50,920 Speaker 1: technology in this. You know, when we think about a 300 00:16:51,000 --> 00:16:54,440 Speaker 1: year ago, the presentation they gave when they announced the 301 00:16:54,440 --> 00:16:57,880 Speaker 1: new name of Matter, and they showed all the things 302 00:16:57,880 --> 00:16:59,360 Speaker 1: they want to be able to do in the metaverse. Well, 303 00:16:59,520 --> 00:17:01,880 Speaker 1: most or certainly a lot of those things you cannot 304 00:17:01,960 --> 00:17:05,520 Speaker 1: do just yet. The technology isn't there. Um, it's not 305 00:17:05,680 --> 00:17:08,600 Speaker 1: something that the competitor could do either. So they are 306 00:17:08,720 --> 00:17:13,080 Speaker 1: building towards something which remains somewhere away. Yeah, and in 307 00:17:13,119 --> 00:17:16,480 Speaker 1: the meantime, they've got to count on advertising revenue to 308 00:17:16,720 --> 00:17:20,600 Speaker 1: provide the underpinnings for this technology that could be years away. 309 00:17:20,680 --> 00:17:23,679 Speaker 1: What are these earnings that we've just gotten say about 310 00:17:23,800 --> 00:17:29,040 Speaker 1: the advertising environment for the tech sector more broadly, Well, 311 00:17:29,080 --> 00:17:31,719 Speaker 1: it's not good. You know, We've seen plenty of other 312 00:17:31,760 --> 00:17:34,760 Speaker 1: ad tech companies over the past few days, for past 313 00:17:35,920 --> 00:17:39,000 Speaker 1: this earning season not post good numbers. If the fact 314 00:17:39,000 --> 00:17:41,240 Speaker 1: that even Google, which is probably the most resilient to 315 00:17:41,280 --> 00:17:44,720 Speaker 1: them all, is feeling the pain. Um, tells its own story. 316 00:17:45,320 --> 00:17:48,560 Speaker 1: I think when you play that into the metaverse, you 317 00:17:48,560 --> 00:17:50,960 Speaker 1: know one of the reasons Facebook is doing this is 318 00:17:50,960 --> 00:17:52,919 Speaker 1: because they don't want to be beholden to the whims 319 00:17:53,119 --> 00:17:55,560 Speaker 1: of their gatekeepers, who in this case of Google and 320 00:17:55,600 --> 00:17:57,840 Speaker 1: Apple and Apple in particular, has made it a lot 321 00:17:57,880 --> 00:18:01,240 Speaker 1: harder to track to use data from across different apps 322 00:18:01,240 --> 00:18:04,560 Speaker 1: in order to measure add effectiveness. So if you own 323 00:18:04,960 --> 00:18:09,680 Speaker 1: the hardware um the gateway essentially to your tech, then 324 00:18:09,960 --> 00:18:13,040 Speaker 1: you're not beholding to those whims. If it makes that work, 325 00:18:13,160 --> 00:18:15,280 Speaker 1: then has an advantage over Apple because you know, it 326 00:18:15,320 --> 00:18:18,399 Speaker 1: can use the ads income to subsidize the cost of 327 00:18:18,440 --> 00:18:20,119 Speaker 1: the consumer of the hardware, so it may be able 328 00:18:20,160 --> 00:18:22,840 Speaker 1: to undercut Apple on price. But it has one significant 329 00:18:22,840 --> 00:18:25,439 Speaker 1: disadvanced to Wrapple, which in that it doesn't have the 330 00:18:25,520 --> 00:18:28,480 Speaker 1: millions of developers developing for its platform, which Apple does. 331 00:18:29,119 --> 00:18:31,440 Speaker 1: And we're gonna get those Apple earnings of course later 332 00:18:31,480 --> 00:18:33,399 Speaker 1: on after the closing belt today and Alex Weev of 333 00:18:33,440 --> 00:18:36,480 Speaker 1: Bloomberg quick Take, thanks for this, really appreciate it. Karen. 334 00:18:36,880 --> 00:18:39,879 Speaker 1: All right, Nathan, it is five twenty three on Wall Street. 335 00:18:39,880 --> 00:18:42,160 Speaker 1: This is Bloomberg Daybreak, and now we want to bring 336 00:18:42,200 --> 00:18:45,399 Speaker 1: you our interview with Credit Swiss CEO L Rick Kerner. 337 00:18:45,720 --> 00:18:49,400 Speaker 1: Credit Swiss announced it's along awaited overhaul, unvailing, a plan 338 00:18:49,520 --> 00:18:52,720 Speaker 1: that will see a multibillion dollar capital raise, curve out 339 00:18:52,720 --> 00:18:55,480 Speaker 1: of the investment bank and thousands of job cuts. The 340 00:18:55,640 --> 00:18:58,760 Speaker 1: restructuring will occur over the next three years. CEO L 341 00:18:58,840 --> 00:19:01,639 Speaker 1: Rick Kerner talked to bloom Ex Francy in Laqua about 342 00:19:01,640 --> 00:19:03,639 Speaker 1: the new plan and when the bank plans to be 343 00:19:03,680 --> 00:19:07,280 Speaker 1: profitable again. This is, as you say, a big day. 344 00:19:07,320 --> 00:19:08,879 Speaker 1: We are all there, that we are there, it's a 345 00:19:08,920 --> 00:19:12,320 Speaker 1: big day also for all our people when we announcing 346 00:19:12,320 --> 00:19:15,480 Speaker 1: now today what is basically new Credits and what is 347 00:19:15,480 --> 00:19:19,080 Speaker 1: the new Credit Swizz. You know, it's a much simpler, 348 00:19:19,400 --> 00:19:23,960 Speaker 1: more stable, much more focused bank going forward which will 349 00:19:24,000 --> 00:19:31,280 Speaker 1: deliver sustainably profitable results to our shareholders. And what is 350 00:19:31,359 --> 00:19:34,520 Speaker 1: very important, if we may add here, how we how 351 00:19:34,560 --> 00:19:37,240 Speaker 1: we came here, so to say, we have a very 352 00:19:37,240 --> 00:19:39,480 Speaker 1: hard look, you know, at the needs of our clients 353 00:19:39,520 --> 00:19:42,240 Speaker 1: and designed everything around the needs of our clients. So 354 00:19:42,320 --> 00:19:44,359 Speaker 1: what was your overarching theme? How did you come up 355 00:19:44,440 --> 00:19:47,800 Speaker 1: with this plan? What was your reasoning? And getting here? 356 00:19:47,800 --> 00:19:51,560 Speaker 1: Many different reasons. I think the as I said, the 357 00:19:51,560 --> 00:19:55,120 Speaker 1: bank is slightly too complict ad it today. The bank 358 00:19:55,200 --> 00:19:58,480 Speaker 1: has parts which are not profitable enough, as we all 359 00:19:58,520 --> 00:20:02,040 Speaker 1: know from the shell to perspective, and that's why we 360 00:20:02,480 --> 00:20:06,200 Speaker 1: came up with, you know, the need of taking very 361 00:20:06,440 --> 00:20:11,560 Speaker 1: decisive affections in mainly three different areas. The one is 362 00:20:12,200 --> 00:20:16,080 Speaker 1: radical restructuring off the investment bank. The second one is 363 00:20:16,440 --> 00:20:18,879 Speaker 1: significant to do something costs going forward. As who I 364 00:20:18,920 --> 00:20:22,760 Speaker 1: have seen and Sei Yes said, managers don't get results 365 00:20:22,760 --> 00:20:24,760 Speaker 1: that are off the charts when their solutions are off 366 00:20:24,760 --> 00:20:28,040 Speaker 1: the shelf. Learn how sci is operating platform can turn 367 00:20:28,080 --> 00:20:31,920 Speaker 1: infrastructure into a competitive advantage At sc SC dot com 368 00:20:31,960 --> 00:20:34,719 Speaker 1: slash tech Man, we're just about four hours away from 369 00:20:34,720 --> 00:20:36,600 Speaker 1: the open of US trading. Let's get you up to 370 00:20:36,680 --> 00:20:38,760 Speaker 1: date on the news you need to know at this hour. 371 00:20:38,840 --> 00:20:41,400 Speaker 1: We continue to watch shares of Meta Platforms. This morning, 372 00:20:41,440 --> 00:20:44,960 Speaker 1: they are downmost twenty percent after the company gave a 373 00:20:45,000 --> 00:20:48,719 Speaker 1: disappointing outlook. It also revealed ballooning costs to fund its 374 00:20:48,800 --> 00:20:53,720 Speaker 1: virtual reality project, the Metaverse. CEO Mark Zuckerberg pleaded patients 375 00:20:53,760 --> 00:20:55,760 Speaker 1: on a call with investors, I think we're going to 376 00:20:55,800 --> 00:20:58,320 Speaker 1: resolve each of these things over different periods of time, 377 00:20:58,520 --> 00:21:00,960 Speaker 1: and I appreciate the patients, and I think that those 378 00:21:01,000 --> 00:21:03,320 Speaker 1: were patient and invest with us to wind up being rewarded. 379 00:21:03,480 --> 00:21:06,440 Speaker 1: Mark Zuckerberg says met his long term bets will pay off, 380 00:21:06,520 --> 00:21:08,840 Speaker 1: but he didn't explain further. We'll stick you with the 381 00:21:08,880 --> 00:21:12,200 Speaker 1: big tech, Nathan, we get too massive. Earning's reports after 382 00:21:12,240 --> 00:21:15,160 Speaker 1: the bell today when Apple and Amazon report, and looking 383 00:21:15,160 --> 00:21:18,679 Speaker 1: at Twitter, Bloomberg News has learned test last CEO Elon Musk, 384 00:21:18,720 --> 00:21:21,800 Speaker 1: who's set to take over the company tomorrow, told employees 385 00:21:21,880 --> 00:21:24,520 Speaker 1: he does not plan to cut seventy percent of staff, 386 00:21:24,560 --> 00:21:28,359 Speaker 1: has previously reported. Bloomberg said. Ludlow has more he didn't 387 00:21:28,359 --> 00:21:33,480 Speaker 1: explicitly rule out layoffs. Generally speaking, Um, he walked into 388 00:21:33,520 --> 00:21:36,760 Speaker 1: the Market Street office carrying a kitchen sinker there, and 389 00:21:36,800 --> 00:21:39,680 Speaker 1: I think that the joke was, this is really happening. 390 00:21:39,880 --> 00:21:42,240 Speaker 1: We should all let that same in and Bloomberg said. 391 00:21:42,280 --> 00:21:44,959 Speaker 1: Ludlow says Elon Musk will meet with staff tomorrow, when 392 00:21:45,040 --> 00:21:47,359 Speaker 1: his forty four billion dollar deal to buy Twitter is 393 00:21:47,440 --> 00:21:50,640 Speaker 1: set to close. Turning to markets this morning, Karen, futures 394 00:21:50,680 --> 00:21:54,840 Speaker 1: are mainly higher as earning season continues. Notorious bear Mike 395 00:21:54,880 --> 00:21:57,800 Speaker 1: Wilson says his team at Morgan Stanley thinks the downward 396 00:21:57,800 --> 00:22:01,159 Speaker 1: trended US equities could conclude, so we're still bearish in 397 00:22:01,160 --> 00:22:03,040 Speaker 1: the intermediate term. We don't think the bear markets over, 398 00:22:03,160 --> 00:22:04,840 Speaker 1: but we do think this tactical rally is going to 399 00:22:04,920 --> 00:22:06,760 Speaker 1: be big enough to try and pivot and trade it. 400 00:22:07,040 --> 00:22:10,280 Speaker 1: Morgan Stanley Chief equity strategist Mike Wilson says that outlook 401 00:22:10,320 --> 00:22:14,000 Speaker 1: could still change. Traders will also be watching economic data closely. 402 00:22:14,000 --> 00:22:16,080 Speaker 1: We get a reading on third quarter US g d 403 00:22:16,200 --> 00:22:19,080 Speaker 1: P at eight thirty am Wall Street Time. Well Over 404 00:22:19,119 --> 00:22:21,760 Speaker 1: in Europe, Nathan Banks are in focus, with Credit Suites 405 00:22:21,880 --> 00:22:24,800 Speaker 1: down more than twelve percent after posting its fourth straight 406 00:22:24,920 --> 00:22:28,200 Speaker 1: quarterly loss. The bank also unveiled a massive turnaround plan 407 00:22:28,240 --> 00:22:31,400 Speaker 1: that includes a multibillion dollar capital race, a carve out 408 00:22:31,400 --> 00:22:34,640 Speaker 1: of its investment bank, and massive jump cuts. CEO al 409 00:22:34,720 --> 00:22:37,360 Speaker 1: Rick Kerner spoke with us about the plans. We want 410 00:22:37,359 --> 00:22:39,840 Speaker 1: to go through the transformation off the next three years 411 00:22:40,200 --> 00:22:43,040 Speaker 1: with a very very strong capital base. It will become 412 00:22:43,119 --> 00:22:47,640 Speaker 1: profited it definitely from twenty four onwards. CEO al Rick 413 00:22:47,720 --> 00:22:50,919 Speaker 1: Karner says Credit Swite plans to be profitable again starting 414 00:22:50,920 --> 00:22:54,919 Speaker 1: in and another note from overseas, Karen the European Central 415 00:22:54,920 --> 00:22:57,480 Speaker 1: Bank is expected if it's main interest rate today to 416 00:22:57,520 --> 00:22:59,960 Speaker 1: the highest level in more than a decade. Stay tuned 417 00:23:00,119 --> 00:23:03,080 Speaker 1: for complete coverage of that announcement. It's coming up this morning. 418 00:23:03,400 --> 00:23:06,920 Speaker 1: On Bloomberg surveillance. N SMP futures are higher, up four 419 00:23:06,960 --> 00:23:09,640 Speaker 1: points this morning. Dow future is up one d sixteen, 420 00:23:09,680 --> 00:23:13,439 Speaker 1: while NASDACK futures are lower, down thirties seven. The decks 421 00:23:13,480 --> 00:23:16,680 Speaker 1: in Germany is down half percent now. Ten year treasury 422 00:23:16,720 --> 00:23:20,000 Speaker 1: down fourteen thirty seconds, held four point oh six percent, 423 00:23:20,040 --> 00:23:21,879 Speaker 1: and they yield on the two year four point four 424 00:23:21,920 --> 00:23:24,440 Speaker 1: or four percent, and I'm ex screwed oils down to 425 00:23:24,600 --> 00:23:27,719 Speaker 1: ten percent or sixteen cents at eighty seven dollar seventy 426 00:23:27,720 --> 00:23:30,680 Speaker 1: five cents a barrel. Straight ahead, your latest local headlines 427 00:23:30,760 --> 00:23:38,719 Speaker 1: plus the check of sports, and this is Bloomberg. Thanks 428 00:23:38,760 --> 00:23:42,160 Speaker 1: Karen thirty three on Wall Street fifty degrees in Central Park. 429 00:23:42,240 --> 00:23:45,480 Speaker 1: Heads up, we've got an overturned tractor trailer westbound eighty 430 00:23:45,520 --> 00:23:48,200 Speaker 1: at exit thirty five in Rockaway. And Michael barrs here 431 00:23:48,200 --> 00:23:49,720 Speaker 1: with more on what's going on in New York and 432 00:23:49,800 --> 00:23:52,480 Speaker 1: around the world. Michael, thank you very much. Nathan Democratic 433 00:23:52,560 --> 00:23:55,720 Speaker 1: Senator above and Ndez of New Jersey, who avoided conviction 434 00:23:55,800 --> 00:23:59,600 Speaker 1: on corruption charges five years ago, is reportedly the subject 435 00:23:59,680 --> 00:24:03,680 Speaker 1: of a new federal investigation. An advisor for the Senator 436 00:24:03,760 --> 00:24:08,480 Speaker 1: Michael Soliman says Senatorman and As is aware of an investigation. However, 437 00:24:08,560 --> 00:24:12,159 Speaker 1: he does not know the scope of the investigation, the 438 00:24:12,240 --> 00:24:16,200 Speaker 1: word on what sort of alleged wrongdoing was involved. Russia 439 00:24:16,240 --> 00:24:21,280 Speaker 1: carried out military exercises simulating a retaliatory nuclear strike, as 440 00:24:21,320 --> 00:24:24,320 Speaker 1: President Joe Biden warned Vladimir Putin than any use of 441 00:24:24,320 --> 00:24:29,280 Speaker 1: a nuclear weapon would be an incredibly serious mistake. Echoing 442 00:24:29,400 --> 00:24:33,320 Speaker 1: Biden's warning of grave consequences, Secretary of State Anthony Blincoln 443 00:24:33,680 --> 00:24:36,879 Speaker 1: spoke in an interview with Bloomberg, we haven't seen reason 444 00:24:36,920 --> 00:24:40,119 Speaker 1: to change our own nuclear posture, but it's something that 445 00:24:40,119 --> 00:24:44,440 Speaker 1: we're tracking very carefully, and we've also uh communicated directly 446 00:24:45,160 --> 00:24:48,840 Speaker 1: and very clearly to to the Russians, to President Putin 447 00:24:49,240 --> 00:24:53,560 Speaker 1: about the consequences that would flow from any use of 448 00:24:53,600 --> 00:24:57,160 Speaker 1: a nuclear device. The Pentagon says the US had been 449 00:24:57,200 --> 00:25:01,119 Speaker 1: notified that Russia would conduct the excess size and compliance 450 00:25:01,119 --> 00:25:05,439 Speaker 1: with arms control obligations. This is all alive. That's the 451 00:25:05,520 --> 00:25:09,280 Speaker 1: response from US Senate candidate herschel Walker to a second 452 00:25:09,280 --> 00:25:12,919 Speaker 1: accusation from a former girlfriend who says Walker paid for 453 00:25:13,040 --> 00:25:16,160 Speaker 1: her to get an abortion. Walker, appearing at the campaign 454 00:25:16,240 --> 00:25:19,600 Speaker 1: stop in Dillard, Georgia, dismissed the matter as nothing more 455 00:25:19,680 --> 00:25:23,359 Speaker 1: than a stunt brought on by his political opponents. He 456 00:25:23,520 --> 00:25:27,120 Speaker 1: got crushed at a debate. Now the Democrats of Doist 457 00:25:27,160 --> 00:25:30,280 Speaker 1: say whatever they even can win is by wind is 458 00:25:30,280 --> 00:25:32,520 Speaker 1: the seat. But I was then to know they don't 459 00:25:32,520 --> 00:25:35,840 Speaker 1: know horshell Walking, Walker added, I'm done with this foolishness. 460 00:25:36,280 --> 00:25:38,960 Speaker 1: A judge ordered former White House Chief of Staff Mark 461 00:25:39,040 --> 00:25:42,920 Speaker 1: Meadows to testify before special grand jury that's investigating with 462 00:25:43,000 --> 00:25:46,639 Speaker 1: the President Trump and his allies he illegally tried to 463 00:25:46,680 --> 00:25:50,800 Speaker 1: sway Georgia's results in the election. Global News twenty four 464 00:25:50,840 --> 00:25:54,320 Speaker 1: hours a day on air and on Bloomberg Quicktake, powered 465 00:25:54,320 --> 00:25:57,040 Speaker 1: by more than twenty seven hundred journalist and analysts and 466 00:25:57,080 --> 00:25:59,639 Speaker 1: more than a hundred twenty countries. I'm Michael Barr, and 467 00:25:59,680 --> 00:26:08,080 Speaker 1: this is Bloomberg n Thanks Michael on Wall Street. Time 468 00:26:08,080 --> 00:26:09,960 Speaker 1: for the Bloomberg sports uthing, brought to you by Try 469 00:26:10,000 --> 00:26:12,760 Speaker 1: State Outie. Here's John stash Our. Thanks to the Knicks 470 00:26:12,840 --> 00:26:15,600 Speaker 1: who began their season with an overtime loss, had themselves 471 00:26:15,600 --> 00:26:18,200 Speaker 1: an overtime win at the Garden against Charlotte Nicks. Led 472 00:26:18,240 --> 00:26:20,800 Speaker 1: by twelve, then trailed by five with just over two 473 00:26:20,800 --> 00:26:23,440 Speaker 1: minutes left. Jalen Brunson big three pointer and ot the 474 00:26:23,560 --> 00:26:26,600 Speaker 1: nixt one one thirty four, one thirty one. Big night 475 00:26:26,640 --> 00:26:29,360 Speaker 1: for Brunts in the new point guard scored twenty seventy 476 00:26:29,359 --> 00:26:32,399 Speaker 1: at thirteen assists, seven rebounds. We're not playing our best 477 00:26:32,520 --> 00:26:35,360 Speaker 1: and when we give up leads, how can we respond? 478 00:26:35,440 --> 00:26:37,879 Speaker 1: And um, those are signs of good teams if you 479 00:26:37,880 --> 00:26:39,800 Speaker 1: can do it consistently. I think we're gonna put ourself 480 00:26:39,800 --> 00:26:42,000 Speaker 1: in position where we can be the best team we 481 00:26:42,000 --> 00:26:44,359 Speaker 1: can be. But um, I think this is a good 482 00:26:44,400 --> 00:26:46,359 Speaker 1: step for us. You definitely gotta continue about it. But 483 00:26:46,359 --> 00:26:47,880 Speaker 1: this is what this is a good step after three 484 00:26:47,880 --> 00:26:49,520 Speaker 1: home wins day, it will be tougher for the next 485 00:26:49,560 --> 00:26:52,240 Speaker 1: tomorrow in Milwaukee Bucks or three and oh they just 486 00:26:52,280 --> 00:26:54,760 Speaker 1: beat the Nets one nine nine. That's at a big 487 00:26:54,800 --> 00:26:57,000 Speaker 1: second quarter, up twelve and a half and then outscored 488 00:26:57,080 --> 00:27:00,480 Speaker 1: second half sixty seven to forty four. The second half 489 00:27:00,520 --> 00:27:03,240 Speaker 1: is where Jana sent to the compost, scored thirty four 490 00:27:03,400 --> 00:27:07,000 Speaker 1: of his forty three points at vas Arena. Islanders shut 491 00:27:07,000 --> 00:27:09,560 Speaker 1: out the slumping Rangers three nothing, forty one saves for 492 00:27:09,640 --> 00:27:12,639 Speaker 1: Ilias Surok and Kyle Palmary scored twice. The Rangers have 493 00:27:12,760 --> 00:27:15,760 Speaker 1: scored only five goals in their last four games. NFL 494 00:27:15,840 --> 00:27:19,280 Speaker 1: to Night Baltimore at slumping Tampa Bay Bucks just three 495 00:27:19,280 --> 00:27:21,679 Speaker 1: and four. Tom Brady hasn't had a record like that 496 00:27:21,720 --> 00:27:24,480 Speaker 1: since twenty years ago. In New England, the Patriots speaking 497 00:27:24,480 --> 00:27:26,919 Speaker 1: to them visit the Jets Sunday. Pats have won the 498 00:27:27,000 --> 00:27:31,159 Speaker 1: last twelve meetings. Mac Jones will reportedly be there starting 499 00:27:31,240 --> 00:27:35,000 Speaker 1: QB despite getting bench the other Night Giants Sunday in Seattle, 500 00:27:35,080 --> 00:27:38,080 Speaker 1: Giants has had two offensive linemen suffered knee injuries, but 501 00:27:38,280 --> 00:27:41,520 Speaker 1: Nick Gates has been activated out since Week two last 502 00:27:41,520 --> 00:27:44,840 Speaker 1: season when Gates suffered a gruesome leg injury that needed 503 00:27:45,200 --> 00:27:49,320 Speaker 1: seven surgeries to the stay there with Bloomberg Scorre Wow, 504 00:27:49,359 --> 00:27:52,000 Speaker 1: thank you John seven on Wall Street Time for the 505 00:27:52,040 --> 00:27:55,720 Speaker 1: Tri State Business Report with Bloomberg's Denise Pellegrini Kempton's homes 506 00:27:55,720 --> 00:27:58,880 Speaker 1: selling faster than ever A Princer Miller Samuel and brokerage 507 00:27:58,920 --> 00:28:02,359 Speaker 1: Douglas Sulliman say properties in Posh Long Island beach towns 508 00:28:02,400 --> 00:28:05,200 Speaker 1: listed for an average of only seventy days last quarter, 509 00:28:05,400 --> 00:28:07,719 Speaker 1: down from nine d a year ago, and the median 510 00:28:07,800 --> 00:28:11,920 Speaker 1: purchase price levitated at record highs. Inventory remained type Converting 511 00:28:11,960 --> 00:28:14,760 Speaker 1: unwanted office space to residential won't be enough to solve 512 00:28:14,760 --> 00:28:18,680 Speaker 1: New York City's housing shortage. North Wind Groups founder Randallias 513 00:28:18,720 --> 00:28:22,600 Speaker 1: have telling BIS journals that means rental prices, especially in Manhattan, 514 00:28:22,720 --> 00:28:26,000 Speaker 1: could keep rising. Connecticut furniture maker Ethan Allen out with 515 00:28:26,080 --> 00:28:30,000 Speaker 1: quarterly learnings and beat estimates. Company says benefited from efficiencies 516 00:28:30,000 --> 00:28:32,960 Speaker 1: and a higher backlog of orders, and the downturn in 517 00:28:33,000 --> 00:28:36,000 Speaker 1: financial markets is hurting pension funds. In New Jersey, the 518 00:28:36,040 --> 00:28:38,800 Speaker 1: Public Worker Pension Fund lost nearly ten billion dollars in 519 00:28:38,920 --> 00:28:41,400 Speaker 1: market value in the year that ended in June, putting 520 00:28:41,440 --> 00:28:44,640 Speaker 1: its value at about eighties six billion dollars. With the 521 00:28:44,680 --> 00:28:49,600 Speaker 1: Bloomberg Try State Business Report, I'm Denise Pelaguini on Wall Street. 522 00:28:49,600 --> 00:28:52,160 Speaker 1: Bloomberg Radio is on the air from San Francisco to 523 00:28:52,200 --> 00:28:54,440 Speaker 1: New York, London to Hong Kong. Let's check in with 524 00:28:54,480 --> 00:28:56,800 Speaker 1: our global news team for some of the top stories 525 00:28:56,800 --> 00:28:59,280 Speaker 1: heard on our three hundred of fillion Radio stations around 526 00:28:59,280 --> 00:29:04,320 Speaker 1: the world. I'm Steve polos Kan K and EX in 527 00:29:04,400 --> 00:29:07,960 Speaker 1: Los Angeles. We're talking about the former Kanye West being 528 00:29:08,120 --> 00:29:12,400 Speaker 1: escorted out of the California based headquarters of Athletic Shoemaker Sketchers. 529 00:29:12,720 --> 00:29:15,880 Speaker 1: I'm Gina Servetti in for w b B. I'm in Chicago. 530 00:29:15,960 --> 00:29:19,080 Speaker 1: I'm reporting that just in time for Halloween, more zombie 531 00:29:19,120 --> 00:29:22,800 Speaker 1: foreclosures are stumbling onto the scene. I'm Stephen Carol on 532 00:29:22,840 --> 00:29:25,440 Speaker 1: Bloomberg d a B Digital Radio in London. We've been 533 00:29:25,440 --> 00:29:28,680 Speaker 1: reporting on credit sweets major overhaul plan, which was the 534 00:29:28,880 --> 00:29:32,920 Speaker 1: raising four billion francs in New Capital. I'm Speligren and 535 00:29:32,960 --> 00:29:35,840 Speaker 1: on w w J in Detroit. Board is trimming its 536 00:29:35,880 --> 00:29:39,800 Speaker 1: profit outlook. Those are some of the stories our twentyd 537 00:29:39,800 --> 00:29:42,440 Speaker 1: Bloomberg journalists and analysts are working on this morning around 538 00:29:42,440 --> 00:29:44,960 Speaker 1: the world. It's five thirty nine on Wall Street. The 539 00:29:45,000 --> 00:29:49,280 Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was 540 00:29:49,320 --> 00:29:53,600 Speaker 1: written by the Bloomberg Editorial Board. Last Sunday, in Beijing, 541 00:29:53,800 --> 00:29:57,280 Speaker 1: Chinese President jj and Ping erased any doubts about the 542 00:29:57,360 --> 00:30:00,400 Speaker 1: scope of his power, filling all the top of editions 543 00:30:00,400 --> 00:30:04,520 Speaker 1: in the Communist Party with loyalists and enforcers. The move 544 00:30:04,680 --> 00:30:09,920 Speaker 1: suggests China will prioritize ideology over the clear eyed, practical 545 00:30:09,960 --> 00:30:14,520 Speaker 1: decision making that has enabled its stunning postmu economic rise. 546 00:30:14,960 --> 00:30:18,040 Speaker 1: In dealing with this new China, the US and its 547 00:30:18,080 --> 00:30:21,880 Speaker 1: partners would be wise to remember that the more flexible 548 00:30:21,920 --> 00:30:26,480 Speaker 1: and realistic they are, the more effective they'll be. Above all, 549 00:30:26,520 --> 00:30:31,000 Speaker 1: the US must keep seeking opportunities to limit confrontation with China. 550 00:30:31,400 --> 00:30:34,000 Speaker 1: If Biden meets the Chinese leader at the G twenty 551 00:30:34,040 --> 00:30:36,880 Speaker 1: summit next month in Jakarta, he should give him a 552 00:30:36,880 --> 00:30:40,520 Speaker 1: better sense of what Chinese actions would elicit a friendlier 553 00:30:40,520 --> 00:30:45,400 Speaker 1: attitude US China tensitions may now be unavoidable, but they 554 00:30:45,440 --> 00:30:50,200 Speaker 1: shouldn't be uncontainable. This editorial was written by the Bloomberg 555 00:30:50,280 --> 00:30:53,640 Speaker 1: Editorial Board. For more Bloomberg opinion, please go to Bloomberg 556 00:30:53,680 --> 00:30:56,520 Speaker 1: dot com, slash Opinion or O P I n go 557 00:30:56,800 --> 00:31:00,600 Speaker 1: on the Bloomberg terminal. This has been Bloomberg. You can 558 00:31:00,600 --> 00:31:04,440 Speaker 1: hear Bloomberg opinion editorials every weekday at this time. Terminal 559 00:31:04,480 --> 00:31:07,280 Speaker 1: customers can read more at O P I n go. 560 00:31:08,080 --> 00:31:10,120 Speaker 1: SMB futures up four points. That's the end of a 561 00:31:10,160 --> 00:31:12,600 Speaker 1: tenth percent down future is up a hundred sixteen. NASAC 562 00:31:12,680 --> 00:31:15,480 Speaker 1: futures still lower, down thirty six points to drop of 563 00:31:15,560 --> 00:31:18,320 Speaker 1: three tenths per cent. Andrew sheets of Morgan Stanley's with 564 00:31:18,400 --> 00:31:23,480 Speaker 1: us next. This is Bloomberg. Bloomberg Sports is brought to 565 00:31:23,480 --> 00:31:25,760 Speaker 1: you by Audie. Don't let someone else drive off in 566 00:31:25,800 --> 00:31:28,480 Speaker 1: the outie model you've always wanted. Visit your local price 567 00:31:28,560 --> 00:31:30,920 Speaker 1: state autie dealer to get behind the wheel of yours today, 568 00:31:31,320 --> 00:31:37,720 Speaker 1: or visit autie Offers dot com for more information, markets, 569 00:31:37,800 --> 00:31:40,880 Speaker 1: headlines and breaking news twenty four hours a day at 570 00:31:40,920 --> 00:31:44,320 Speaker 1: Bloomberg dot com, the Bloomberg Business at and at Bloomberg 571 00:31:44,400 --> 00:31:53,880 Speaker 1: Quick Tape. He's a Bloomberg Business Flash and I'm Karen 572 00:31:54,000 --> 00:31:57,760 Speaker 1: Moscow stocks are slipping this morning. U Stock Index futures 573 00:31:57,760 --> 00:32:00,560 Speaker 1: are mixed as traders digestive flurry of made your earnings 574 00:32:00,560 --> 00:32:03,520 Speaker 1: and prepared for another jumbo European Central Bank rate high 575 00:32:03,640 --> 00:32:06,920 Speaker 1: later today. The Nazdak is lower as shares a meta 576 00:32:06,960 --> 00:32:11,040 Speaker 1: platforms fall more than twenty percent in early training after 577 00:32:11,080 --> 00:32:14,400 Speaker 1: it reported earnings. Right now, Nazdack futures are down thirty 578 00:32:14,440 --> 00:32:18,400 Speaker 1: six points. SMP futures are up about four down futures 579 00:32:18,440 --> 00:32:21,640 Speaker 1: up one fourteen the decks in Germany's down half percent, 580 00:32:22,120 --> 00:32:24,600 Speaker 1: the ten your treasury down fourteen thirty seconds you at 581 00:32:24,640 --> 00:32:26,880 Speaker 1: four point six percent. They yield them the two year 582 00:32:26,960 --> 00:32:29,960 Speaker 1: four point four or four percent. NIMEX screwed oil little 583 00:32:30,040 --> 00:32:32,720 Speaker 1: change at eighty seven dollars nineties cents of barrel, the 584 00:32:32,800 --> 00:32:36,400 Speaker 1: euro one point zero zero three four against the dollar. 585 00:32:36,720 --> 00:32:39,320 Speaker 1: That's a bloomberg business flash. Now here's Michael Barr with 586 00:32:39,360 --> 00:32:42,280 Speaker 1: more on what's going on around the world. Michael Karen, 587 00:32:42,360 --> 00:32:46,000 Speaker 1: thank you very much. Russian President Vladimir Putin personally oversaw 588 00:32:46,120 --> 00:32:51,560 Speaker 1: Moscow's first major nuclear drill since the innovatd Ukraine, simulating 589 00:32:51,600 --> 00:32:55,520 Speaker 1: a massive nuclear strike. Mr n Allies Warren. Russia could 590 00:32:55,640 --> 00:32:58,320 Speaker 1: use such an event as a false flag to blame 591 00:32:58,440 --> 00:33:02,320 Speaker 1: Ukraine for an attack that OSCO carries out itself. The 592 00:33:02,360 --> 00:33:06,040 Speaker 1: International Energy Agency says it believes global emissions will peak. 593 00:33:06,080 --> 00:33:10,920 Speaker 1: In the group's annual World Energy Outlook report finds that 594 00:33:11,040 --> 00:33:15,080 Speaker 1: the global energy crisis, triggered by Russia's invasion of Ukraine 595 00:33:15,120 --> 00:33:19,160 Speaker 1: and the ensuing increase in kill prices are propelling investment 596 00:33:19,280 --> 00:33:22,200 Speaker 1: in renewable energy in the NBA. The next one in 597 00:33:22,280 --> 00:33:26,840 Speaker 1: overtime over the Hornets one, The Nets lost in hockey, 598 00:33:26,880 --> 00:33:30,320 Speaker 1: The Islanders blanked Rangers three Zip Thursday Night Football, The 599 00:33:30,400 --> 00:33:33,720 Speaker 1: Ravens take on the Buccaneers. Global News twenty four hours 600 00:33:33,720 --> 00:33:37,240 Speaker 1: a day on air and on Bloomberg Quicktake, powered by 601 00:33:37,320 --> 00:33:40,239 Speaker 1: more than twenty seven hundred journalist and analyst more than 602 00:33:40,280 --> 00:33:44,200 Speaker 1: a hundred twenty countries. High Michael Barr and this is Bloomberg, Nathan. 603 00:33:44,320 --> 00:33:46,360 Speaker 1: Thanks Michael. We're coming up to five forty nine on 604 00:33:46,400 --> 00:33:50,160 Speaker 1: Wall Street Live from the Bloomberg Interactive Broker Studios. This 605 00:33:50,280 --> 00:33:52,960 Speaker 1: is Bloomberg Daybreak. Let's take a closer look at this 606 00:33:53,080 --> 00:33:55,880 Speaker 1: market now. For that, we're joined by Andrew Sheets, Chief 607 00:33:55,920 --> 00:33:59,680 Speaker 1: Cross Assets Strategistic Morgan Stanley. Great to speak with you 608 00:33:59,800 --> 00:34:02,760 Speaker 1: this morning, Andrew, on a week where we've seen tech 609 00:34:02,960 --> 00:34:07,400 Speaker 1: shares in particular get hammered on earnings and we're seeing 610 00:34:07,600 --> 00:34:11,480 Speaker 1: Nasdaq futures fall a little bit lower still this morning. 611 00:34:11,520 --> 00:34:13,560 Speaker 1: Does this that further to wash out or could this 612 00:34:13,640 --> 00:34:16,799 Speaker 1: be a buy opportunity now that tech shares have uh 613 00:34:17,200 --> 00:34:21,319 Speaker 1: fallen so far? Yeah. Thanks, it's great to be with 614 00:34:21,360 --> 00:34:24,040 Speaker 1: you this morning. So I think we are seeing an 615 00:34:24,080 --> 00:34:27,440 Speaker 1: interesting shift in leadership within the market. You know, one 616 00:34:27,480 --> 00:34:30,640 Speaker 1: of the concerns we have had on the US market side, 617 00:34:30,760 --> 00:34:33,040 Speaker 1: A major concern in my colleague Mike Wilson, or US 618 00:34:33,080 --> 00:34:36,359 Speaker 1: equity strategist, has been that earnings expectations are are too 619 00:34:36,480 --> 00:34:39,359 Speaker 1: high in the market, and we do think that that's 620 00:34:39,360 --> 00:34:41,920 Speaker 1: an adjustment process that needs to play out. But you know, 621 00:34:41,960 --> 00:34:44,040 Speaker 1: I think it's also at the same time encouraging that 622 00:34:44,080 --> 00:34:46,800 Speaker 1: we've been able to see other parts of the market 623 00:34:47,320 --> 00:34:49,640 Speaker 1: continue to hold up better as these kind of old 624 00:34:49,719 --> 00:34:52,640 Speaker 1: leaders of the market have seen more weakness. So you know, 625 00:34:52,800 --> 00:34:55,080 Speaker 1: in the near term, we still think that there's a 626 00:34:55,080 --> 00:34:57,719 Speaker 1: window for a little bit more tactical strength. But I 627 00:34:57,719 --> 00:35:01,200 Speaker 1: think with different leadership than we've seen before, which leadership, 628 00:35:01,239 --> 00:35:05,719 Speaker 1: do you think what's gonna start coming out on top now? Well, 629 00:35:05,719 --> 00:35:08,279 Speaker 1: we still think that some of the defensive assets within 630 00:35:08,719 --> 00:35:11,600 Speaker 1: defensive equity sectors can still perform well. We continue like 631 00:35:11,640 --> 00:35:15,680 Speaker 1: healthcare as a sector that could benefit as the market 632 00:35:15,719 --> 00:35:18,400 Speaker 1: looks ahead in the first quarters. He used, decelerating economic 633 00:35:18,440 --> 00:35:21,160 Speaker 1: activity maybe starts to get a little bit more confident 634 00:35:21,239 --> 00:35:24,600 Speaker 1: that the feed is getting closer to a terminal rate 635 00:35:24,719 --> 00:35:27,960 Speaker 1: by the early part of next year, and you know, 636 00:35:27,960 --> 00:35:29,960 Speaker 1: I think that could set the market up well for 637 00:35:30,000 --> 00:35:33,200 Speaker 1: some continued preference in the defensive parts of the market. 638 00:35:33,440 --> 00:35:35,640 Speaker 1: Do you think we're gonna see further evidence of that 639 00:35:35,719 --> 00:35:39,480 Speaker 1: deceleration in the GDP numbers that come out this morning, 640 00:35:39,560 --> 00:35:41,600 Speaker 1: or does the or does the feed need to see 641 00:35:41,640 --> 00:35:45,439 Speaker 1: even more before we can start thinking about pivoting. Yeah, 642 00:35:45,480 --> 00:35:47,440 Speaker 1: I think that's a great question. I we think they 643 00:35:47,440 --> 00:35:49,680 Speaker 1: need to see more. You know, you still had pretty 644 00:35:49,719 --> 00:35:55,640 Speaker 1: strong job gains, You've still had pretty robust economic activity. 645 00:35:55,840 --> 00:35:57,799 Speaker 1: It's the data has been mixed. I think it's been 646 00:35:57,840 --> 00:36:00,840 Speaker 1: holding up a lot better than UH investors would have 647 00:36:00,840 --> 00:36:03,759 Speaker 1: expected a couple of months ago. And so you know, 648 00:36:03,800 --> 00:36:07,439 Speaker 1: it might be into the early parts of next year 649 00:36:07,480 --> 00:36:10,080 Speaker 1: where where the FED can really get a lot more 650 00:36:10,120 --> 00:36:13,400 Speaker 1: confident that that deceleration is coming through. And again, you know, 651 00:36:13,520 --> 00:36:16,640 Speaker 1: trying to marry up some of the micro and macro 652 00:36:16,880 --> 00:36:19,480 Speaker 1: you know, our our stock analysts that are looking at 653 00:36:19,840 --> 00:36:22,399 Speaker 1: you know, so the payments companies in the US, they're 654 00:36:22,400 --> 00:36:26,239 Speaker 1: still seeing quite strong underlying activity there as people still 655 00:36:26,239 --> 00:36:28,600 Speaker 1: spend on credit cards and the like. So you know, 656 00:36:28,640 --> 00:36:31,680 Speaker 1: we don't think we're yet seeing enough that will allow 657 00:36:31,719 --> 00:36:34,000 Speaker 1: the FED to back off just yet. How much more 658 00:36:34,040 --> 00:36:36,040 Speaker 1: do you think the FED needs to see how much 659 00:36:36,480 --> 00:36:40,480 Speaker 1: higher or potentially do market conditions need to get tightened 660 00:36:40,520 --> 00:36:46,000 Speaker 1: before we start to think about the FED potentially making 661 00:36:46,000 --> 00:36:49,440 Speaker 1: a move here. Yeah. So, so one of the key, 662 00:36:49,480 --> 00:36:52,480 Speaker 1: you know, themes from our economists has been that the 663 00:36:52,560 --> 00:36:55,839 Speaker 1: real economy might be more important to this pivot than 664 00:36:55,840 --> 00:36:59,160 Speaker 1: the financial economy, that the so called FED put just 665 00:36:59,360 --> 00:37:03,480 Speaker 1: really isn't in action for the equity market, and that 666 00:37:03,640 --> 00:37:09,400 Speaker 1: the FED would would really only intervene if you start 667 00:37:09,480 --> 00:37:12,200 Speaker 1: to see for the weakness and the investment grade credit market, 668 00:37:12,280 --> 00:37:14,839 Speaker 1: much more weakness that we've seen already. So I think 669 00:37:14,840 --> 00:37:17,120 Speaker 1: it is that real economy side that's going to be 670 00:37:17,160 --> 00:37:19,319 Speaker 1: more important, and I think what we need to see 671 00:37:19,360 --> 00:37:23,200 Speaker 1: there is, you know, more signs of weaker job growth, 672 00:37:23,280 --> 00:37:26,600 Speaker 1: more months of non farm payrolls coming in a hundred 673 00:37:26,880 --> 00:37:30,200 Speaker 1: under a hundred thousand, those types of things we think 674 00:37:30,239 --> 00:37:32,520 Speaker 1: would make the set a little bit more confident that 675 00:37:32,640 --> 00:37:34,880 Speaker 1: the rate hikes they've already done that are going to 676 00:37:35,160 --> 00:37:38,120 Speaker 1: affect the economy in the future or maybe already starting 677 00:37:38,120 --> 00:37:41,080 Speaker 1: to have that impact. But I think it's really focusing 678 00:37:41,160 --> 00:37:43,320 Speaker 1: on on the hard data on the real side of 679 00:37:43,320 --> 00:37:45,680 Speaker 1: the economy that we think is going to be most important. 680 00:37:45,719 --> 00:37:49,360 Speaker 1: To that that downshift of FED action. Does that feed 681 00:37:49,360 --> 00:37:51,839 Speaker 1: into the thesis from Mike Wilson that we could get 682 00:37:51,840 --> 00:37:54,360 Speaker 1: that bottom a little sooner than the market has been thinking. 683 00:37:54,400 --> 00:37:56,800 Speaker 1: I mean, if the Fed does wait a little longer, 684 00:37:56,920 --> 00:37:59,799 Speaker 1: what what makes you think that the market could see 685 00:38:00,120 --> 00:38:04,200 Speaker 1: them around the first quarter next year. Yeah, So some 686 00:38:04,280 --> 00:38:06,560 Speaker 1: of this is based on the idea that the markets 687 00:38:06,640 --> 00:38:09,840 Speaker 1: will lead the economy. And so if if economic data 688 00:38:10,080 --> 00:38:13,680 Speaker 1: is troughing around to say the middle of next year 689 00:38:13,920 --> 00:38:16,440 Speaker 1: or in the second quarter of next year, then I 690 00:38:16,480 --> 00:38:20,120 Speaker 1: think there would be good historical precedent for you know, markets, 691 00:38:20,320 --> 00:38:22,319 Speaker 1: you know, bottoming three to six months ahead of that, 692 00:38:23,040 --> 00:38:26,359 Speaker 1: because the markets are anticipatory. And again, you know, this 693 00:38:26,440 --> 00:38:29,040 Speaker 1: is a cycle where everything is seemed to play out 694 00:38:29,040 --> 00:38:32,080 Speaker 1: incredibly fast. So you know, I think the idea that 695 00:38:32,120 --> 00:38:35,600 Speaker 1: you could also have that emphasizing that trend. Thanks Andrew 696 00:38:35,640 --> 00:38:37,880 Speaker 1: Great having gone with us this morning. Andrew Sheets is 697 00:38:37,960 --> 00:38:42,760 Speaker 1: chief cross assets strategist at Morgan Stanley. Karen Well Nathan, 698 00:38:42,800 --> 00:38:45,319 Speaker 1: it is five fifty three on Wall Street. It is 699 00:38:45,360 --> 00:38:48,200 Speaker 1: time now for a legal story we're watching this morning. 700 00:38:48,200 --> 00:38:51,680 Speaker 1: The criminal tax fraud trial of the Trump organization began 701 00:38:51,719 --> 00:38:55,600 Speaker 1: this week in Manhattan with jury selection. Prosecutors claim the 702 00:38:55,600 --> 00:38:59,280 Speaker 1: company routinely low ball that's tax exposure by paying senior 703 00:38:59,320 --> 00:39:03,120 Speaker 1: executives with perks like company curs and rent free apartments. 704 00:39:03,360 --> 00:39:07,239 Speaker 1: The company's former chief financial officer, Alan Weisselberg will be 705 00:39:07,280 --> 00:39:11,080 Speaker 1: the reluctant star witness for the prosecution. For more, Bloomberg's 706 00:39:11,120 --> 00:39:14,280 Speaker 1: Juran Grosso speaks to Bloomberg the legal reporter Greg Farrell. 707 00:39:14,920 --> 00:39:17,840 Speaker 1: Trump has not been charged personally in the case, but 708 00:39:18,000 --> 00:39:21,960 Speaker 1: it seems like his presence is looming over the jury selection. 709 00:39:22,480 --> 00:39:25,760 Speaker 1: Are all the jurors being asked questions about their feelings 710 00:39:25,760 --> 00:39:29,640 Speaker 1: toward him? Yes, June, absolutely, that's. In fact, the questionnaire 711 00:39:29,719 --> 00:39:32,160 Speaker 1: that all the potential jurors had filled out had a 712 00:39:32,239 --> 00:39:35,279 Speaker 1: number of questions that tried to elicit their feelings about 713 00:39:35,320 --> 00:39:38,160 Speaker 1: Trump as a person as a politician. Then there's another 714 00:39:38,160 --> 00:39:41,080 Speaker 1: set of questions that's interesting about whether or not you 715 00:39:41,200 --> 00:39:43,960 Speaker 1: feel that corporations have an obligation to pay their fair 716 00:39:44,000 --> 00:39:47,400 Speaker 1: share of taxes. So you can usually reverse engineer these 717 00:39:47,480 --> 00:39:50,520 Speaker 1: questionnaires into what interests each set of lawyers had, And 718 00:39:50,560 --> 00:39:53,520 Speaker 1: obviously the lawyers for the Trump Corporation wanted to see 719 00:39:53,640 --> 00:39:56,760 Speaker 1: how deep the biases and I saw a clear example 720 00:39:56,760 --> 00:39:59,000 Speaker 1: of it. All the jurors say to the question, can 721 00:39:59,040 --> 00:40:03,040 Speaker 1: you render a fair and impartial verdict based on the evidence, 722 00:40:03,239 --> 00:40:07,000 Speaker 1: And they all say yes to varying degrees of certainty. 723 00:40:07,239 --> 00:40:09,440 Speaker 1: But one guy, it was clear that he was not 724 00:40:09,520 --> 00:40:11,680 Speaker 1: a Trump fan. One of the lawyers for the Trump 725 00:40:11,760 --> 00:40:13,959 Speaker 1: organization asked him, well, why do you think you can 726 00:40:14,040 --> 00:40:17,160 Speaker 1: be fair then? And he said, listen, the guy's no morals. 727 00:40:17,400 --> 00:40:20,560 Speaker 1: He's a criminal, he's a fraud, but he's caused so 728 00:40:20,640 --> 00:40:22,960 Speaker 1: much damaged in such a large scale that something like 729 00:40:23,000 --> 00:40:25,960 Speaker 1: this kind of a small potatoes I could be fair 730 00:40:26,000 --> 00:40:28,680 Speaker 1: in that. So obviously he was struck from the panel. 731 00:40:28,800 --> 00:40:32,800 Speaker 1: The prosecutors told prospective juror that the government star witness 732 00:40:33,320 --> 00:40:38,360 Speaker 1: may be reluctant to answer questions. What is Weisselberg's position, 733 00:40:38,800 --> 00:40:43,359 Speaker 1: he's not cooperating with the prosecutors, but he's testifying in 734 00:40:43,440 --> 00:40:46,399 Speaker 1: this trial, so where's his good question? He is not 735 00:40:46,800 --> 00:40:50,920 Speaker 1: necessarily cooperating with the d a's investigation of Donald Trump 736 00:40:51,200 --> 00:40:55,040 Speaker 1: the person. However, once a last minute attempt to get 737 00:40:55,040 --> 00:40:57,880 Speaker 1: this case thrown out in early August failed and it 738 00:40:57,920 --> 00:40:59,839 Speaker 1: was going to go to trial, you know, he did 739 00:40:59,880 --> 00:41:02,880 Speaker 1: the math and made a very rational decision, and he 740 00:41:02,960 --> 00:41:05,080 Speaker 1: and his lawyers reach to deal with the d A's office. 741 00:41:05,440 --> 00:41:07,920 Speaker 1: If I plead guilty to the charges you've been filed, 742 00:41:08,160 --> 00:41:11,560 Speaker 1: can you cap my jail time at five months? And 743 00:41:11,600 --> 00:41:14,960 Speaker 1: the prosecutors agreed to it, and as part of that agreement, 744 00:41:15,160 --> 00:41:18,200 Speaker 1: he has to testify truthfully at trial. So there's a 745 00:41:18,200 --> 00:41:20,240 Speaker 1: bit of risk here for the d a's office. However, 746 00:41:20,719 --> 00:41:24,040 Speaker 1: if Weislberg abides by that and testifies truthfully and he's 747 00:41:24,080 --> 00:41:26,239 Speaker 1: asked about whether or not any of these perks went 748 00:41:26,280 --> 00:41:28,799 Speaker 1: to Trump family members. You know, A, I think they'll 749 00:41:28,800 --> 00:41:30,719 Speaker 1: be able to prove that because they have the documentation, 750 00:41:30,920 --> 00:41:33,839 Speaker 1: But B who knew about it? And did the recipients 751 00:41:33,880 --> 00:41:36,200 Speaker 1: know that this is something that probably would cause problems 752 00:41:36,200 --> 00:41:38,799 Speaker 1: on taxes? That is probably going to be the most 753 00:41:38,880 --> 00:41:42,040 Speaker 1: interesting part of the trial, his testimony and that fine 754 00:41:42,080 --> 00:41:45,120 Speaker 1: line that he's trying to straddle between not cooperating against 755 00:41:45,200 --> 00:41:47,640 Speaker 1: Donald Trump because he's not been cast out of Trump 756 00:41:47,719 --> 00:41:50,239 Speaker 1: Land yet and because he's on leave ABS and I 757 00:41:50,239 --> 00:41:52,920 Speaker 1: think Trump is paying his legal bills. So it's a 758 00:41:53,000 --> 00:41:56,799 Speaker 1: very delicate dance. It's not a simple plea deal with cooperation, 759 00:41:57,640 --> 00:42:00,239 Speaker 1: and that's Bloomark Legal reporter Greg far Else beging with 760 00:42:00,320 --> 00:42:03,680 Speaker 1: Bloomberg Student Grass. So catch more of that interview, plus 761 00:42:03,719 --> 00:42:06,400 Speaker 1: analysis of the latest legal news by subscribing to the 762 00:42:06,440 --> 00:42:09,719 Speaker 1: Bloomberg Law Podcast or downloading this show at Bloomberg dot 763 00:42:09,719 --> 00:42:13,279 Speaker 1: com slash podcasts. Attorneys can find exceptional legal research and 764 00:42:13,320 --> 00:42:16,239 Speaker 1: business development tools at Bloomberg Law dot com and on 765 00:42:16,320 --> 00:42:21,040 Speaker 1: the Bloomberg terminal at the Law Go and futures this morning, well, 766 00:42:21,080 --> 00:42:24,279 Speaker 1: let'sten P futures are now little change. DAL futures are 767 00:42:24,360 --> 00:42:28,120 Speaker 1: up a hundred NASDAG features are down fifty year, being 768 00:42:28,200 --> 00:42:31,320 Speaker 1: led lower by companies including Meta Platforms, which is falling 769 00:42:31,320 --> 00:42:35,200 Speaker 1: about twenty percent in early training after reporting earnings. Ten 770 00:42:35,280 --> 00:42:38,000 Speaker 1: year treasury down fourteen thirty seconds. You old four point 771 00:42:38,239 --> 00:42:40,839 Speaker 1: six percent and they yield on the two year four 772 00:42:40,880 --> 00:42:44,960 Speaker 1: point four four percent, and Bloomberg day break continues. This 773 00:42:45,280 --> 00:42:46,000 Speaker 1: is Bloomberg