Bloomberg Daybreak: November 1, 2022 - Hour 2 (Radio)

law takes effect today in New York City. Plus go at the Supreme Court in affirmative action at universities and colleges. I'm Michael barr More Ahead, John Stan Shower Sports much did it win for the Nets? The Bround's upset the Bengals? The World Series got reined out. That's All's trended Ahead on Bloomberg Daybreak on Bloomberg Eliving, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius Exam one nineteen and

around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business App. Good Tuesday morning, I'm Amy Morris I'm Nathan Hagar. Futures are moving higher this morning. We're coming up to six o one on Wall Street, and we checked the markets every fifteen minutes during the trading day. On Bloomberg, SMP futures are up thirty three points, STOUT futures up a hundred ninety seven, Nastack futures are higher by one twenty three points. The tenure treasury is

up thirty seconds. The yield three point nine five nim X screwed is up one point four percent at eighty seven dollars sixty three cents a barrel. Amy Nathan Stocks Center the first day of November moving higher. If history is any indication, equities made build on October's games, which saw the SMP five hundred rise eight percent. Bespoke investment groups, as the SMP five hundred has registered in the average

game of eight tenths of a percent in November. Amanda Gottias, chief investment officer at p nc ST Management, we're still playing a little bit of defense. We're still leaning US over international, larger over smaller capitalization. We kind of neutralize our growth and value bets here um. But with valuations following six plus, multiple points since the beginning of the year. Just on the S and P five you have to start getting interested um in opportunities at these leveled P

n c ST managements. Amanda Gotti says markets will rally if the Fed gives a clear message on when rate hikes will end. Well, I mean it has been a big trading day in Asia. Chinese stocks surged overnight as speculation grows of the government's preparing to exit stringent COVID restrictions.

The Hang Sang in Hong Kong rose five percent. Stocks in China gained three point six percent, and Nathan we continue to see historic profit from oil companies VP this morning, reporting its second highest quarterly profit on record and announcing two and a half billion dollars of share buybacks. Bloomberg Stephen Stabinski says it's a batter year for big oil. It's really hard to see anyone who is really losing out on the surging prices. And you've seen it across

the board over the last week. You've seen you know, Shell total at so On bp IS is joining this larger group not just in Europe, in the United States, but you're also seeing this in you know, Saudi Aramco posted their second best quarterly profit ever. When it comes to Saudi Aramco, Bloomberg's Steven Stepanski's reports that the company posted its second highest earnings on record this morning. The results from Big Oil this quarter are do largely to

surging prices at the pumps. Stephen mentioned amy We've seen record profits from Mixed On Mobile as well as Chevron. Both companies have masked more than thirty billion dollars in combined net income last quarter, and that has President Biden calling on Congress to impose higher taxes on oil companies. If they're not reinvesting in production, they don't, they're gonna pay a higher tax on their excess profits and face other restrictions. My team will work with Congress to look

at these up. These options and are available to us and others. It's time for these companies to stop for profit cheering. The President Biden's promise to impose higher taxes will be hard to deliver. Democrats have unsuccessfully sought a

so called windfall profit tanction more than a decade. Such a proposal would have a hard time passing the Senate and its current makeup, and Nathan Central Banks also in focus this morning, the FED begins its two day policy meeting, where it's expected to hike rates another seventy five basis points. At the same time, Australia's Central Bank has raised interest rates by a quarter percentage point. It looks like the

r b A is pivoting away from larger hikes. According to Bloomberg's at Garfield Reynolds, it's definitely a pivot for the b A. The question is whether other central banks are going to be as concerned about the growth side of their mandate as the A. B A is signaling that it is. It's still concerned about inflation. It says more hikes are to come, but reading between the lines, it's concerned about growth mean that it's not wanting to

go more than twenty five basis points of time. Bloomberg's chief rates correspondent Garfield Reynolds says cash rate in Australia now stands at two point eight five. That's the highest level since In corporate news this morning, Amy, we are focused on credit Swiss again. The Swiss Bank is not for sale. That's what the firm's chairman Axel Lehman saying, after shares have fallen more than fifty percent this year,

Layman spoke to us in Hong Kong. We're going to you know, to slife again, so we don't have any take over this conscience and at that point we truly believe we want to stay independent. Credit Swiss chairman Axel Layman made the comments in an interview with Bloomberg News. You can catch the full conversation on Bloomberg dot com and on the Bloomberg terminal and back here in the US, the airline and travel recovery continues as the busy holiday

season approaches. Delta Airlines pilots have voted to authorize a strike. We get that story from Bloomberg's Charlie Pellett. It gives union leaders the authority to call for a work stoppage once they have gone through steps set by federal labor law. The Delta unit of the Airline Pilots as Seation says about ninety nine percent of pilots who voted approved the proposal. The participation rate among Delta's roughly fifteen thousand pilots was

ninety six percent. While aviators must follow steps set by the Railway Labor Act and can't randomly walk off the job. The strength of the vote represents Pilot's view about the lack of progress in negotiations in New York. Charlie Pilot's Bloomberg Daybreak. Thanks Charlie. In another note on the airline industry, for the first time since COVID cut air travel, US passenger traffic has been running above levels. Just over fifteen million people went through TSA security portals in the past

seven days. That's about thirty nine thousand more than in and On the political front, the midterm elections are set for a week from today. That means a policy change from Twitter. The social media company has frozen some employee access to internal tools used for content moderation and other policy enforcement, and that's curbing the staff's ability to clamp

down on missing formation ahead of the election. Bloomberg News has learned most people who work in Twitter's Trust and Safety organization are currently unable to alter or penalize most accounts that break rules around misleading information, offensive posts, and hate speech. Futures are higher. This is Bloomberg. It's six or seven on Wall Street. Let's bring in Michael Bard to find out what else is going on in New

York and around the world. Good Morning, Michael, Good Morning Amy, and a salary transparency law takes effect today in New York City. It requires most companies to include a minimum and maximum salary ranges when they post job openings. The laws supporters say it's intended to close the pay gap for women and people of color, but critics are nue it will do just the opposite. The Supreme Court kicked

off hearing arguments over affirmative action at universities. Conservative groups have sued both Harvard University and the University of North Carolin line up, claiming that their admissions processes aren't fair to white or Asian applicants. The courts three liberal justices cast a doubt on whether race is the sole indicator

in admissions processes. Attorney Patrick Strawbridge represents students for Fair Admissions in the U n C case and says that race should only be used in a broader context of an application. Racial classifications are wrong. That principle was enshrined in our law at great cost. Following the Civil War, Justice Elena Kagan encountered, the race is part of the culture, and the culture is part of the race, isn't it.

I mean that's slicing the Ballooney awfully them. Meanwhile, conservative justices have been casting doubt on whether the affirmative action programs are needed. A correction officer inside Rikers Island was injured after being stabbed over a dozen times. The New York City Department of Correction says it happened yesterday afternoon. The officer is said to be in stable condition at

Elmhurst Hospital. Court documents say the man accused of entering the San Francisco home of how speaker Nancy Pelosi wanted to break her kneecaps. Speaker was not home. Police say forty two year Rold David to Pap attacked her husband, Paul Pelosi. Meanwhile, Democratic Congresswoman Debbie Dingle of Michigan discussed the attack on Paul Pelosi and heightened tensions over political rhetoric and violence. She referred to recent Elon Musk tweets

on Pelosi. The conspiracy theories are also adding to the some putting kerosene on and people will read it, so, yeah, you know what, I will go after somebody. It's a new owner of Twitter's got some responsibilities too, and was horrified that he would participate in some of this conspiracy

here he said it has now no truth Jeit. Congresswoman Dingle spoke on sound On, which airs at five pm on Bloomberg Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalist and analysts more than countries. I'm Michael Barr, and this is Bloomberg. Amy, all right, thank you, Michael. It's seems so nine on Wall Street. Time. Now for the sports report, brought to you by Tri State Audi. Here's

John stash Our. All right, Amy, Brooklyn Nets have become somewhat of a soap opera. Very often has to do with Kyrie. I main scenes. It's always something with Kyrie. The latest his posting on social media a link to an anti Semitic video. Several fans last night sat courtside with t shirts that read fight anti Semitism. There's also the team's early season struggles, a one in five record, worst defensive the NBA so a much needed win at Barkley's one sixteen one O nine over Indiana. Chive Sports

points Kevin Durant at thirty six. The Mother Night gave an upset win for Cleveland thirty two to thirteen over Cincinnati. The Browns were up twenty five nothing in the fourth quarter. NFL trade deadline four o'clock today, Giants could be looking for a receiver Jets. Why a Elijah Moore has asked to be traded. No quarterback change to the Jets. Despite Zach Wilson's th reinterceptions and the loss of the Patriots, the Jet coach got full confidence inside. We all do

um um. You know, it's not like he hasn't had bad games before and he stepped up and has followed it with good days. So you know the way he preps and the way he practices and the questions he asks, We've got faith that will continue to continue to find ways to get better. Jets. It's up one Sunday against six and one Buffalo College Football. Auburn fired Ryan Harrison, so he didn't finish the second season of a six year contract, though all fifteen million dollars they're still paying.

The previous Coach World Series resumes tonight at Philadelphia. After last night's Right nowt The Phillies have changed their Game three starter out is the x Mett Noah Synder guard in his Rangers Swarez the astros are sticky with a glance for colors. World Series is tied of one John Dash that lub sports and all right, thank you john S andd features a thirty four points high or Dell features up by one points, nastac features up by one

hundred twenty seven points. The ten year treasury up thirty seconds, the yield at three point nine four percent. This is Bloomberg. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the autie model you've always wanted. Visit your local try state autie dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com,

The Bloomberg Business at and at Bloomberg. Quick Tape Bruce is a Bloomberg Business Flash. I'm Nathan Hagar. The dollar and treasury yields are falling as investors await the Federal Reserves policy meeting. It kicks off today. The decision is tomorrow. Stocks and futures are in rally mode this morning. We checked the markets for you every fifteen minutes during the trading day on Bloomberg S and P futures are up thirty four points. Staff futures up two one. Nastack futures

are higher by a hundred twenty seven points. The tenure treasure he is up twenty five thirty seconds yield three point nine four percent yield on the two year at four point one one p. Nime ex screws up by one point six percent, or a dollar forty two at eighty seven dollars. Ninety seven cents of Arrol comic gold is up eight tenths per cent, or twelve dollar sixty

cents sixteen fifty three thirty announced. The euro point five against the dollar the end one forty seven point to five Big coins up one percent twenty thousand, six hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, thank you very much. Nathan. The Supreme Court at arguments in cases challenging the consideration of a student's race and college admissions.

The cases involving Harvor to end the University of North Carolina could end affirmative action at public and private schools across the country protests by Jenner Bilsonaro supporters intensified as the Brazilian president remains silent over his loss to Lula da Silva on Sunday's elections protests. Here's block highways. They'll try to make up Game three of the World Series in Philadelphia. Last night, Phillies and Astro's game was postponed because of rain. In the NBA, the Nets one, the

Wizards lost. In the NHL, the Capitals lost in a shootout with the Hurricanes three to The Browns beat the Ravens thirty two thirteen and Monday Night Football. Global News twenty four hours a day on air and on Bloomberg Quick Tank, powered by more than twenty seven under journalist and analysts in more than a hundred twenty countries. I'm Michael Barron. This is Bloomberg Amy all right, Thank you, Michael. It is six nineteen on Wall Street Live from the

Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. The White House has been calling on oil companies to invest more in production for months, but Bloomberg data show the biggest companies like Exxon and Shell and Chevron are all handling a lot of that money and they're handing it over to their shareholders and then just reinvesting only a fraction

of their windfall. So now comes a warning from President Biden for oil companies, as the administration is promising higher taxes on oil company these that record those windfall profits without reinvesting in production. Joining us now to talk about it, President of the Short Group, Stephen Short, Stephen, thank you so much for taking the time with us this morning.

The President is going to have to get congressional support to do this, But the question is if you can get that support, Willie Well, I think a lot of it amy depends on I guess, in about a week or so after the mid terms, who has control of Congress. I think if we still have the current uh Democrat control with the Vice president as the tiebreaker, Uh, then yeah, well we'll probably get this flow to by Congress, and Congress would probably try to enact uh some sort of

windfall profit tax. Of course, on the other hand, UH, if we see any sort of red wave or or even a red tide where Republicans gained control on one of both houses, uh, then the likelihood of attacks uh windfall prof attacks UH dimensions greatly I think will be non existence. So now I think Amy. The question is, with a week Togo and some of the prediction markets, I markets you could bet on the outcome of next week's elections, do you seem to indicate that the Republicans

will win at this point? Uh So, a lot of the rhetoric that we heard yesterday is what we've heard in the past. And perhaps it is just nothing but the campaign trail, trying to rally the troops before the election, but so close to the election, is it too little, too late? Well, it's all about rhetoric. Right. Markets trade on perception. They don't trade on reality. Often they trade on perception. Uh these are futures markets we are talking about.

Uh So, what this will do is it casts the oil companies, whether it is the Western oil companies or OPEC, casts them as the villain. It takes the shine off of whatever ability you might have had in the situation, and it gives you talking points. The bottom line is the windfall profit tax. We've tried it before. We tried in the nineteen eighties and nineteen eight and nine nine. It did not work then, and if it were to be reenact, we reenacted. Uh then certainly, I am highly

skeptical that it will work this time. Yeah, I wanted to get into that historical perspective. We have seen this before then in the nineteen eighties, Why didn't it work? Then we have a survey or not serve excuse me, a study put up by the Congressional Research um UH group, And essentially we've tried this in the nineteen eighties. And what happened was we had a price cap um after prices were decent um de regulated in the seventies, and

that price cap what was taken off. And then Congress enacted this under the belief that oil companies were earning windfall profits. And this study that was put forth by um excuse me, by this independent congret me. As I said, the the crs UH determined that, UH, the tax ended up reducing the amount of oil produced because you're raising the cost of capital UH and thereby cutting off the supply of capital for the industry. So production was was

cut in. Our dependence on foreign oil actually grew UH during the n UH. So effectively, what you had was the government being encounters over those ten years, estimated that the windfall tax revenues they would collect the I r s two dree billion, whereas they only create and they

only collected eight billion at this point. Because once again, uh, you're looking at a situation when you tax something, Ideally, you're going to reduce the supply of whatever you're being uh, whatever you're being taxed on, because you're raising the cost of production. And just as this congressional research study put forward, uh effectively, Uh, it happened before. We'll reduce the cost of capital, you reduce production, you'll increase in ports, and

you'll do nothing to impact price. Stephen very quickly thirty seconds here turning to the price of oil. Where do you see it headed from here right now? It depends on whether or not we are in recession. I know, I think uh, I think a big bank came out said a second quarter will be in recession. Certainly if we see that are modeling hat takes oil down below fifty dollars a barrel at this point, as uh, the

economy drives up as demand drives up. Are modeling coming in so far from the new year is mid eighties two, about a hundred and twenty that would be arranged, so around a hundred dollars a barrel, assuming we do not go into recession. You go into recession forty all right, Steven Stork, thank you very much. Always great to get to your insight. Stephen Shark is president of the Short Group.

S and P Futures now thirty six points higher, del Futures up two hundred fifteen points, NASDAC features up a hundred thirty nine points. Much more to come on Bloomberg Daybreak. This is Bloomberg. Bloomberg Daybreak is brought to you by the Jewish Communal Fund. For fifty years, j c f's donor advised funds have been helping families create charitable legacies. Start now and open a j c F fund before year and visit j c F and why dot org.

Broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Free on to Washington, d C, Bloomberg nine to Boston, Bloomberg one O six one to San Francisco, Bloomberg Ning sixty to the country, Sirius XM to the one nine team, and around the globe, the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good Tuesday morning. I'm Ane Morris, I'm Nathan Hager. We're about three hours away

from the open of US trading. It's time for the five Things you need to know to start your day. Brought to you by Interactive Brokers IBKR. Event Trader offers a new way to trade futures. Use event contracts to trade your opinion on yes or no questions and key CME futures markets. Learn more at event trader dot Interactive Brokers dot com. First US futures are higher as investors geara for this week's FED meeting and the October jobs report.

The Fed is front and center. That's according to Bloomberg macro strategist Vince Signarella, the Fed made pivots sooner than expected. I think that's what the markets are hoping for, some indication that the Fed acknowledges that their work is starting to find its way through the economy, specifically in housing, as we saw last week pending home sales down over

on a month over month basis. That's what the market is hoping for, and Bloomberg Cingerella says markets will respond negatively if the FED does not forecast easy monetary policy in the near future. Expectations are for the FED to raise rates seventy five basis points tomorrow, followed by fifty in December. Meantime, Australia's Central Bank haik to interest rates today by just a quarter percentage point. That's sparked bets

that the RB is pivoting away from large heights. Let's been a big day in Asia and each Chinese stocks surged overnight of speculation grows the government's preparing to exit COVID restrictions. The hang second Hong Kong Ros five percent stocks in China gained three point six percent. And Nathan, we're seeing historic profits from big oil, Saudi Aramco and VP posting their second highest quarterly earnings this morning after

record profit from Exxon and Chevron. It has President Biden calling on Congress to impose higher taxes on big oil. Rather than increasing no investments in America or giving American consumers of break their excess profits, You're going back to their shareholders and buying back their stocks and the executive page, I'm going to skyrocket, give me a break. Enough is enough by President Briden's promise to impose higher taxes will be hard to deliver Democrats have unsuccessfully sought a windfall

profit tax for more than a decade. The Incorporate News this morning, we're talking Credit Swiss again. Amy chairman Axcel Layman tells us the Swiss Bank is not for sale. If we picked out where we need to go, and we took some bold and really dare we important decisions for the group, and it's now really about looking forward and to execute that plan. Credit Swiss chairman axel Lehman made the comments in an interview with Bloomberg. You can catch the full conversation on Bloomberg dot com or on

the Bloomberg terminal. Red headlines crossing the Bloomberg terminal, Eli Lily is cutting its adjusted forecast for the full year, and Johnson and Johnson is acquiring a BioMed in a deal valued at sixteen point six billion dollars. That's the five things you need to notice start your day, brought to you by Interactive Brokers, straight Ahead, your latest local headlines, and a check of sports. This is Bloomberg, all right,

Thank you, Nathan sixty three on Wall Street. Now, let's bring in Michael bar to tell us what else is going on in New York and around the World. Good morning Michael, Good morning Amy. A salary transparency law takes effect today in New York City. It requires most companies to include salary ranges when they post a job opening. The law supporters say it's intended to close the pay gas for women and people of color, but critics argue

it will do just the opposite. Maria Cola Cursio is CEO of Cindio, a company that makes software to analyze pay equity. As a company, if you have a philosophy of start low, stay low, or paid top dollar to the best negotiator, that's going to very quickly catch up with you from a pay equity and meeting pay gap perspective. A recent study found white women are paid seventy three cents on the dollar compared to white men, for black

women at sixty four cents on the dollar. A deeply divided Supreme Court assert arguments that could end affirmative action policies at universities. Bloomberg said Baxter as the story the conservative majority suggesting a readiness to abolish the practice. Chief Justice John Roberts, I don't see how you can say that the program will ever end. Your position is that race matters because it's necessary for diversity, which is necessary

for the sort of education you want. It's not going to stop mannering the affirmative action proponents at North Carolina and Harvard, arguing that the policies ensued diversity. Justice Clarence Thomas said he doesn't even know what diversity means in this context. In San Francisco, i'med Baxter bloomber Daybreak, Federal prosecutors say the man accused of attacking Paul Pelosi, the husband of House Speaker Nancy Pelosi, told police he wanted

to hold the speaker hostage and break her kneecaps. David du pomp has been charged with two federal crimes and a state count of attempted murder. North Korea threatened to unleash a powerful action if the US does not halt joint military drills with partners, including South Korea. It might be an effort by Kim Johannune to lay the ground

for his first nuclear tests in five years. Fans wearing fight anti Semitism shirts occupied some courtside seats at the Brooklyn, Indiana game last night, days after Nets guard Kyrie Irving tweeted out a link to a documentary film that includes anti Jewish tropes. Global news twenty four hours a day on here and on Bloomberg Quick Tank, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg.

Am all right, Thank you, Michael. About thirty six on Wall Street Time. Now for the sports reports, Actually six thirty six the sports report brought to you by Try State OUTI here's Jon's dash our all right, and he asked for that next Pacers game. It finished at home in all the Indietta one the other night. That was the next fourth loss row, and in three of them they allowed at least a hundred and twenty five points at Barkley's nets blew much but twenty five point, but

they held on beat. The Pacers won sixteen one on nine, just the second one of the season. The coach Steve was the message after the game. That was a message on film this morning. That was the message in in uh our walkthrough. Um, you know we we had a disastrous defensive game Saturday night, And so the guys responded, proud of him. Now that the affront energy Kevin ran lad Brooklyn with thirty six points. Kybrie every had twenty eight both average and over thirty a game, but no

one else has really been story in the work. Keef has has been the worst than the NBA. As the Nets ended their four game losing Streek, so did the Cleveland Browns. The upset the Bengals thirty two, the thirteen Nick Chubb, Hunter George Rushing two touchdowns, Browns at five sacks. So Baltimore now with sole possession of first a f C North and the Ravens just acquired line back of the ro Kuan SMIs from Chicago. Smith leads the entire NFL and tackles NFL trade deadline four o'clock today. We're

here tonight of the College Football Playoff Committee. They'll unveil their first rankings. This week's a P pole has Georgia and Tennessee ranked one two. When the two teams meet Saturday in Mathis, Michigan. States has spending four football players for their involving in a post game brawl the other

night at Michigan. Criminal charges could be coming. Phillies and Astros will try to play Game three in the World Series tonight in Philly the rain out last night means Game five will be Thursday, and if the series is still going, Friday will now be an off day. John Stationing Big Sports. All right, thank you, John. At sixty seven on Wall Street. Time to take a look at stocks and some of the names that are moving in the pre market. For that, we're joined by Bloomberg Radio

and TV Markets correspondent Createy Gupta and Created. Let's get more details. First off on the breaking news involving those drug makers. Yeah, let's start with Johnson Johnson. Here looks like they're buying a bio mad for upfront payment of three dollars per share in cash. Amy get this is a classic M and A arbitrage that you're seeing in the stock market right now. J and J shares down

at one point two percent. Remember the the acquisition or for lack of a better term, is always going to see their their shares take a little bit of a hit, even on a positive day like today in the broader markets. But on the other hand, a b O MAD up about forty eight percent in the pre market. A b m D is your ticker. There, Uh, just some more

details of the deal here. This does include some milestone payments includes an enterprise value about sixteen point six billion dollars, and some of those ABA MED holders will also get some commercial and clinical milestones as well. Johnson Johnson, on the other hand, is going to fund the deal through

cash on hand and short term financing. Remember this is a massive theme that we tend to focus on in the tech space, but across the S and P five hundred, a lot of these mega large cap companies, tech and otherwise have been sitting on piles of cash. Remember we were coming off of a period of easy lending, easy issuance, so a lot of companies have a lot of cash to really deploy in the M and A space, and

Johnson Johnson is no exception. So, like I said, J and J, those shares are down at one point two percent, hovering about one seventy two per share, and a b O med up about a well forty eight percent, right to three hundred and seventy two dollars. Remember it's not quite at that three eight that you are going to see, uh, that the deal is going in for. But anyways, that's not the only one. We also have Eli Lily as well. L l Y is your taker there those years down

about three tents of one percent. They actually just came out with earnings and are cutting their full year adjusted EPs forecast. And now I remember they have been dealing with some of the issues in the discount in the drug space, so and kind of discounting some of their drugs. They are involved in a legal case there. But they're also reporting a third quarter EPs of one one dollar.

The consensus was a dollar ninety six. The problem here for these shares and why you're seeing them under pressure is the forecast is the forward guide. Is that even though some of these numbers on the surface are pretty good, overall, uh not so much. Alright, really quick thirty seconds China stocks, what you got? Well, we've about to talk about some of these rumors that are that are kind of surfacing here and and remember I have to emphasize or unverified.

They are just rumors, but there are enough to give some of these Chinese companies a little bit of a boost.

The likes of Ali Baba be A b A up six point three percent on the idea that perhaps there are meetings that are coming down the pipeline for some thoughts on how trying to can exit their COVID zero policy and I remember unverified still social media rumors, but like I said, enough to give it a boost, not just for those Chinese a yrs like Ali Baba, but some of the American companies that have massive exposure there. We love to look at the casino names for that.

Las Vegas Sands can be our post to child lvs about five percent. Amy alright, Bloomberg Radio and TV markets correspond and that was the lightning round with creating Goop to creaty. Thank you so much. Always a pleasure looking at stocks as a whole. Ahead of the open SMP future thirty seven points higher. Del Future is up two hundred nineteen points, NASDAC features up a hundred forty three points. The ten year treasury of thirty seconds to yield at

three point nine four percent. This is Bloomberg. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the Autie model you've always wanted. Visit your local try state out either you learned to get behind the wheel of yours today, or visit Autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com the Bloomberg Business at and at Bloomberg Quick TAKEE. He's

a Bloomberg Business Flash. I'm Nathan Hagar. Futures are moving higher as the Fed gets ready for its to day rate setting meeting. Let's go live to the first word I can news task for today's morning call. Here's Bill Maloney.

Good morning Bill, Hey, good morning Nathan. That's right you as features are in the green right now, deaf features up two hundred and six points, subs game thirty seven and and as that futures rise by one thirty eight, the US ten year falls to three point nine four percent, Gold is up eighteen oil is in the green, and bitcoin is trading higher by one point one percent. Hong

Kong rose five point two percent overnight. Note that Shinese markets rallied after unconfirmed social posts on reopening, and European markets are firmly in the green this morning, back in the US, on the economic front, at ninety five sp Global Manufacturing p m I and at ten o'clock Joel's job openings and construction spending. Regarding some of the earnings this morning, Eli lily Cut, it's fisically your adjusted EPs forecast,

while fives are raised its two outlook. In deal news, J and J to buy a bio met for three hours a share in cash and wrapping things up for Solar is raised to equate at Barkley's Everyonson Electric was cut to hold at Deutsche Bank, and Carbona raised a neutral over at JP. Morgim live from the First Breaking News Descon Bill Maloney Nathan Okay, Bill, thanks to you have live breaking news over your Bloomberg type squawk on

the terminal s q U A go. That's a Bloomberg business flash and now here's Michael Barr with more on what's going on around the world. Michael Nathan, thank you very much. The Supreme Court heard arguments involving Harvard and the University of North Carolina that could end the affirmative mansion process in college admissions. The Court is a new conservative majority and one that seems ready to roll back, if not overturn it. Former Israeli Preminister Benjamin Netan Yahoo

has cast his vote in Jerusalem. Israelis are voting in their fifth parliamentary election in less than four years. Net and Yahoo is looking to return to office. Bill try to make up Game three of the World Series in Philadelphia. Last night, the Phillies and Astro's game was postponed because of rain. In the NBA, the Nets one, the Wizards lost. In the NHL, the Capitals lost in the shootout with the Hurricanes three to Monday Night football, the Browns beat

the Ravens. Global News twenty four hours a day on here and on Bloomberg Quickdake, powered by more than twenty seven hundred journalist and analysts more than a hund twenty countries. I'm Michael Barr. This is Bloomberg. The following commentary is from Bloomberg Opinion. Tax loss harvesters prepare for a bumper crop. I'm Alexis Lean. This a calmness for Bloomberg Opinion. There's no sugarcoating the stock market plunge this year, but there is a small consolation prize. You have one of the

best opportunities in years to lower your tax bill. That's because the U. S Tax code allows investors to sell poor performing stocks and use those investment losses to offset capital gains from selling better performing assets such as stocks, bonds, a home, or business. For some mutual fund investors, the benefit of tax loss harvesting will be amplified in December. Fund investors maybe in for a nasty surprise. Not only will most have suffered negative returns, but they may also

be receiving a capital game distribution. Locking in stock glasses now can help to offset those unwelcome distributions. It's been a rocky here in the markets, but smart moves now can make taxes less painful. Came April. I'm Alexis Lee on this. For more opinion, please go to Bloomberg dot com, slash opinion or opi and go from the Bloomberg terminal. These has been Bloomberg Opinion and you can hear Bloomberg Opinion commentaries every weekday at this time. Terminal customers can

read more at O P I n go. It is six fifty on Wall Street. Time to turn the news in science and technology. The Bloomberg n j I T STEM Report is brought to you by the New Jersey Institute of Technology, rank a top one hundred national university by US Use of Role Report and number fourteen in the nation on Money's Best Colleges List. Learn more at n j I T dot e DU. Now Here's what's

making news and science, technology, engineering, and math. The Biden administration's restrictions on US citizens assisting China's chip industry will be more narrowly enforced than feared. That suggests a smaller than expected impact on Semikindr companies. The sanctions were introduced to keep cutting edge chip technologies out of the reach of China's military. Elon Musk is preparing to appoint new

product leadership inside Twitter. Bloomberg News has learned Musk met over the weekend with close friends and advisers on how best to change the service he just bought for forty four billion dollars. Meanwhile, managers have been compiling lists of staff who could be cut, and Toyota says its profit fell thirty one percent in the last quarter because of

a shortage of chips. The maker of the camera, Sedan, Prius Hybrid and Lexus luxury models said it faces many challenges, including rising interest rates, soaring materials costs, and fluctuating exchange rates. A shortage in semiconductors, COVID lockdowns in Shanghai, and flooding in South Africa also bit into Toyota's earnings. That's the

Bloomberg and j I t Stem report. Amy all Right thank you, Nathan, and we're live from the Bloomberg Interactive Broker Studios where it is six fifty two on Wall Street time out of check what's going on in d C. And some of the top stories in our nation's capital include President Biden's warning to oil firms to reinvest in production or face higher taxes, North Korea maybe laying the groundwork for its first nuclear test in five years, and

former President Trump looking to shield as tax returns from the public eye. Let's get more on these stories with the host of Bloomberg Sound On, Joe Matthew. Joe, thank you so much for joining us this morning. First, the President going to need some congressional support to do this when fall tax plan? Is he gonna get it? Well, you know you're asking the right question. Starting to think, you know, they're not getting back together here Amy the

White House and big Oil. We've heard this message before from the President. A new level of rhetoric though, as as he refers to a windfall of war, accusing big oil ex Son Chevron Shell of war profiteering, it's a pretty heavy accusation. Is not going to make a lot of friends in Houston. Uh, not that they were making friends. So here we are the difference this time those that instead of begging oil companies to drill more, they are in fact asking to work with Congress to craft this tax.

Uh if if these companies don't show that they're reinvesting in production, that part of the story hasn't changed. The reality check those that Democrats have tried to do this for years, a windfall tax, and if it wasn't already happening with Democratic control of the House, the Senate, the White House. Look, it could be another world after the mid terms here even if Democrats somehow keep control of the House, the votes are not in the Senate for this.

So you know, it's a powerful message to send from the White House, to get on TV, send that message a week before elections. But that may be all it is. Is kind of a messaging moment for Joe Biden. I wondered about that because as Democrats have been pushing for this for for years, does this mean the president's kind of holding his own party accountable for not getting it done soon? That's an interesting way of looking at it,

And I suppose you could say that. But look, you know, this is something that the Democrats, progressive Democrats have largely UH supported. And when we consider where we are now with a week to go, can you even imagine a week from today, we're finally voting three dollars and seventy five cents? Seventy six will say if we rounded up, is today's triple a national average above five dollars a gallon in California and in some areas of the country.

The president had to do something, he had to say something, and at least if you're gonna be blamed for this, you can turn around of the American people and say, you know what, we tried everything we could, but we just couldn't get it through Congress. And that's the message that has, you know, worked for presidents over the years. All right, well, let's shift gears. Now. Look at North Korea.

They're now threatening to unleash a powerful action at the US doesn't talk those joint military drills with partners, including with South Korea. Where's this going? Yeah, look, you know we're talking about a potential nuclear test. It's not a shocker here. As the US conducts military exercises with South Korea that's seen as someone of a provocation, but it's

also pretty rich. After Kim Jong un just unleashed the biggest series of missile tests we've seen in years, largely to get the world's attention as as Russia sucks all the oxygen out of the room. He even sent one rocket over Japan, right. He rattled a lot of nerves in the region, which is partly why we have these activities.

And we're talking, by the way, about two forty airplanes uh honing their wartime capabilities, as the Pentagon says, the Seventh Air Force says, they're they're flying about sixteen hundred sorties. It's it's hard to miss. But yeah, the North is threatening a new test, which would be the first and about five years. And frankly, uh, it's it's amazing how much he gets away with. It might not lead to anything if he does this, but it certainly gives you a sense of of the just the risk level and

that part of the world around the Korean Peninsula. It's not to be forgotten. We spent a lot of time talking about China and Russia, but Kim Jong un is still causing trouble. I've got a lot more questions about that, but we are running out of time. Former President Trump wants the Supreme Court to block that Congressional committee from getting years of his tax returns. Now, his legal team

filed an emergency application just yesterday. What does that tell you, Yeah, well, the tells me that we've reached the end of the line here. You know, an emergency application to the justices means that there are no other legal options at this point, and so a Chief Justice will have to figure out if if he wants to handle this on his own or or kick it to UH to other justices. But this is the Ways and Means Committee in the House, and the argument here is they've been looking for six

years of his tax returns. The president has been incredibly successful keeping us all from reading them, going back to his time as a candidate, of course. But they argue, and this is what has to be decided, that there is in fact a legislative purpose forgetting these tax documents. This isn't just for an expose a It has to

be for the sake of crafting legislation. The Ways It Means Chair Richie Neil says, Yeah, we're gonna make legislation that shows how accountable presidents must be, but we need to see his tax records first. Unclear how the Supreme Court weighs in on this one. But but President Biden and President Donald Trump, I should say the former president has been very consistent on this, and this is gonna

be a riot if they do release it. It's not likely to happen, all right, Bloomberg Washington Correspondent Joe Matthew. Always a pleasure. Thank you so much, and you can read more about these stories on Bloomberg dot com or the Bloomberg Terminal. And a reminder, follow all of the latest on Bloomberg Radio in Washington, Bloomberg ninety nine one and one oh five point seven FM h D two.

Some breaking news now, Nathan, Yeah, Amy, We're watching shares of Uber Technologies jump on earnings, crossing the Bloomberg Terminal. Third quarter revenue beat analyst estimates, though the rideshare company does see fourth quarter gross bookings that came in with a miss of what Wall Street was expecting. Still, investors seem to like what they're seeing on the top line. Right now, Uber shares are higher in the pre market by six point seven percent, futures moving higher as well.

SMP futures up thirty eight point, staff futures up two undred fourteen and nanastack futures are higher by a hundred forty points. Much more to come on Bloomberg surveillance. That's coming up next for Amy Morris. I'm Nathan Hagar. This is Bloomberg