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

global economy. At a summit in Hong Kong, two Newark police officers were shot as the suspect remains on the loose. Plus campaigning with only six days until the mid term elections. I'm Michael Barr. More ahead, I'm down stage, Shower Sports the next Way, that coaching change and then lost. The local hockey teams all warned. The Philly shut out the

Astros in Game three of the World Series. That's all training ahead on Bloomberg Daybreak on Bloomberg E Liveing freon New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Syrius Exam one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business app. Good morning. I'm Kared Moscow. I'm Nathan Hagar. Bloomberg Daybreak is brought to

you by Cone Resnick Advisory Assurance Tax. Visit Cohne residents c suite dashboard to get the insights and intelligence you need to stay ahead. Visit Cone resideck dot com slash c suite. Then US Futures Hire this morning six on

one on Wall Street. We checked the markets every fifteen minutes throughout the trading day on bloomberg S and P futures at four points down futures that'll change now Stay futures, and a ten year treasury that'll change YELD four point oh four percent yield on the two year four point five one percent. Nathan Karen, We begin with today's Fed decision and news conference from Chair J. Powell. Wall Street's been waiting for it all week, and we get a

preview from Bloomberg Economics correspondent Michael McKee. The focus of the November FED meeting is going to be the December FED meeting once again. Central bankers have told us they intend to raise interest rates by three quarters of a percentage point to four percent this week, but there have also been some hints from some FED officials and some data that they might dial back to a half point rise in December at a quarter point rise after that.

Much will depend on how the economy develops, but markets would like a better idea of just how high the Fed will go. Answering that question without creating more market volatility will be Chairman J. Powell's main job after Wednesday's meeting. Michael McKay Bloomberg Daybreak. All right, Mike, thanks and stay with Bloomberg Radio and Television for live analysis of the Fed decision. It all begins at one thirty pm Wall

Street Time on a special edition of Bloomberg Surveillance. Well as we await that policy decision, Nathan, the chorus is growing louder that rate hikes will eventually lead to a recession. Luke Ellis, as chief executive officer of Man Group, You're going to get a recession in the US. That's sort of inevitable. They wanted to get rid of inflection. If they want to get inflection down to a two percent target,

then yes, I was sorry. There is a theoretical soft banding runway, but it's so thin you wouldn't want to try to land a plane in a hurricane. In Man Group CEO Luke Ellis sees US inflation slowing to three and a half to four percent as soon as next year. We Karen m and A on Wall Street has been slowing down, but David Solomon expects that to change. The Goldman Sax CEO sees a recovery in deal making next year, and he's speaking about that and the current state of

financial markets. Generally speaking, when we've had these periods in the past, it takes somewhere between two and four quarters, sometimes maybe six quarters, you know, to rebalance. I think we're going through that rebalancing period. I think there's still a significant amount of uncertainty, but as we get into twenty three and we start to have a clear understanding

of the trajectory of capital markets. Goldman Sax CEO David Solomon made the comments at today's Global Financial Investment Summit in Hong Kong. Solomon is one of several financial leaders attending that summit. Nathan HSBC CEO Noel Quinn is also there, and we kind up with him to discuss the impact COVID is having on the Chinese economy. The COVID is a big story because with with a restriction and movement into Ana China. It's very hard for the international community.

So we can next with third economy, but it will rebound and China will open up at some points in time. But I think it is important for the economy for China eventually to find the solutions of the COVID strategy. HSBC's nor quinns use Asia has a strong platform for growth. We starks an Asia rose again overnight. Karen on optimism COVID restrictions will ease. Let's get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet, Good morning, Nathan

and Karen. Afternoon trade in Hong Kong was halted due to a storm. However, the Hang Sang index steal posted its best two day games since March. Mainland shares also climbed as investors tried to waste speculation that China may

scrap its COVID zero policy. In Taipei, on high shares rose despite China looking down the Jangel Airport economy zone where Fox Colan's iPhone plant is located, to cut the COVID spread, and the yen strengthened for a second straight Day, with traders considering the risk that a hawk is fed may boost the dollar to levels that trigger fresh intervention. On a Japanese holiday in Singapore, Juliet Sally Bloomberg Daybreak Right, Julie Thankstang and China Now, Bloomberg News has learned that

Teslash at its flagship showroom in Beijing last month. The electric carmaker has a number of showrooms in China's capital, and the one now shuttered was in a shopping center in a residential area. For the most part, Tesla sales cars via an online direct sales model, rather than through dealerships or showrooms. And other corporate news Karen, Amazon's taking more measures to align its expenses with a slowdown in sales.

We get the details from Bloomberg's Lisa Mateo. Bloomberg News has learned that the world's largest e commerce company is freezing staffing levels and its profitable advertising business. The decision to keep the advertising unit workforce at its current level shows Amazon is looking to squeeze more profit out of

the fast growing business and the busy holiday quarter. Amazon's advertising business, largely sponsored search results on its web store generated more than nine and a half billion dollars last quarter. Lisa Mateo, Bloomberg, Daybreak at Leasta thanks. Shares of Airbnb on the move this morning downward then six percent in early trading. That's after a disappointing outlook for bookings on the fourth quarter, and we get the need tails from

Bloombergy's Charlie Pellett. It suggests that consumer preferences are shifting away from higher cost rentals that thrive during the pandemic and back to urban and cross border destinations. The San Francisco based home sharing platform said it expects the pace of nights and experiences booked will quote moderate slightly in the fourth quarter compared with the third quarters gain of

twenty five percent. Airbnb reported ninety nine point seven million nights and experiences booked in the three months ended in September, falling short of analyss estimates of ninety nine point nine million. In New York. Charlie Pellett Bloomberg, deybreak, all right, Charlie, thank you. Finally, it is one of the last big

settlements over the opioid epidemic. Sources tell Us, CVS Health, Walgreen's Boots Alliance, and Walmart have tentatively agreed to pay twelve billion dollars to resolve state and local lawsuits over mishandling of addictive painkillers. Were told the deal won't be finalized until enough states, cities, and counties agreed to it. N S and p futures are little chain in this morning, So are down futures, nounsdays, futures up about twenty ten

year treasury that will change. You had four point oh four percent and a yield in the two year four point five one percent, and NIMEX screwed oil is down to tenth of upper sent straight ahead your latest local headlines plus the check of sports. And this is Bloomberg. He's staring at six oh seven on Wall Street. We're fifty seven degrees in Central Park. We have a service suspension on the New Jersey Transits Northeast Corrida between Trent

and Railway. Tell you more in traffic. First, Michael bar with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. To Newark police officers were wounded in a shooting in a residential neighborhood not far from the city's airport. The Essex County Prosecutor's office as the officers were being treated for injuries at a nearby hospital. Both are said to be

in stable condition. Essex County Acting prosecuted Ted Stevens says the suspected shooter, Kendall Howard, faces charges and remains on the loopse to Council attempted murder on the officers, as well as unauthorized possession of a weapon and unauthorized possession of a weapon for unlawful purposes. Prosecutor Stephens says the gunman opened fire on police as they were serving a

search warrant. A New York appeals court upheld a new state law allowing absentee ballots to be reviewed before election day. The court says it would be extremely disruptive to change the rules with absentee voting already underway. Republicans challenged the law. Former President Obama stump for Democrats last night in Las Vegas, with less than a week to go before the midterm elections. Obama campaigned for incumbent Catherine Cortez Mastow in Nevada Senate race.

Obama was critical of Republicans they want to gut social Security and Medicare and then give they're Welsley friends and big corporations more tax cuts. Polls show a debt heat between Mastow and Republican Adam Laxhole. Another closely watched Senate races in Pennsylvania between Democrat John Fetterman and Republican Memit Oz. Doctor Oz hit the campaign trail in Lower Bucks County, speaking at to get out the vote rally in Ben

Salem Township last night. Washington getting the wrong because of the extreme positions that they're accepting of and they need a dose of Pennsylvania reality. Cutterman's lead over Oz is shrinking, with supporting Fetterman to for Oz. Former Israeli Prime Minister Benjamin Netanyah, who appears to be heading towards victory and national elections. With about eighty percent of the ballots counted, voters gave him and his far right allies what looks

to be a stable majority in the country's parliament. Brazilian President Jayre Bolsonaro vow to respect the constitution and authorized the government to start the political transition after his loss to Luis Ignatio. Lula de Silva. Global News twenty four hours a day on air and on Bloomberg quicktake powered by more than the seven hundred journalists and analysts more than a hundred twenty countries. MICHAELA. Barn This is Bloomberg, Nathan.

Thanks Michael. Almost six ten on Wall Street time for the Bloomberg Sports Update, brought to you by Tri State Outy with John Stashower. All Right, Anathan, he's are good times in Philadelphia. The Eagles are seven and oh. The Phillies are two wins from over just their third ever World Series title. They took Game three over the heavily favored Astros seven and I think Philly's had five home runs. Houston only had five hits. The series is to one,

game four in Philly. Tonight Whorlwood Day in Brooklyn, the Nets had a quote parting of the ways with coach Steve Nash just seven games in the season, and then multiple reports they are on the verge of replacing Nash with m Audoka, nash assistant in Brooklyn. He then coached the Celtics to the NBA Finals last season. He's now serving a team imposed year long suspension for an improper relationship with the Celtics employee Jacques Vaughan, coach the Nets.

Last night at Barkley's. They blew a lead Chicago one one O eight to ninety nine. Zach Lavine outscored the nets by himself in the fourth quarter. Rough game for Kyrie Irvan. He shot two of twelve, missed all six of his three pointers, and the nets are two and six. That's the Garden. Rangers and Flyers scoreless for sixty four minutes. Here's he's into the Rangers should now the right side back out connecting shoots. This is it carrots all the

way around. We're cups about a chat. Please pass break away, Chris Protter, oh it over time dates Star Rangers win in New York to call the Crier game winner. Rangers third straight win after a four game skid. The Devils have won four straight seven of eight. They won five to at Vancouver and the fourth strade win for the Islanders three one in Chicago. First rankings from the College

Football Playoff Committee. The top four Our Tennessee, Ohio State, Georgia and Clemson Tennessee plays George the Saturday John Stashoward Bloomberg Sports Nathan all Right, John, Thanks futures trading A little change now ahead of the FED decision. We're seeing SMP futures highed by three points down, Futures little change now, Nastic futures up. This is Bloomberg Bloomberg Sports brought to you by Audie. Don't let someone else drive off in

the Autie model. You've always wanted to visit your local price state Audie 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 Outland at Bloomberg Quick Tape. This is a Bloomberg business lash and I'm far at Moscow and this updates brought to you by Commonwealth, supporting more than two thousand independent financial advisors or the solutions

they need to grow a thriving business. Commonwealth Go Where You Grow. Is a Commonwealth dot Com to learn more and nasday futures are on the rise this morning, whiles and P futures are little changed ahead of the Federal Reserves policy meeting. If you check the markets everything fifteen minutes throughout the trading day on Bloomberg has A futures have twenty points this morning and again SMP futures as well as DAL futures are little changed. The decks in

Germany little changed as well. In the ten year treasury down one thirty second yield four point oh four percent yield on the two year four point five one per cent. NIMEX screwed oil is down a quarter percent or twenty four cents at eighty eight dollars twelve cents of barrel comes gold up half percent or eight dollars thirty cents

at sixteen fifty seven eighty and ounce. The euro point nine nine o two against the dollar British found one point one four nine zero and the end one forty seven point one four And looking at Big Coin this morning, it is down four ten percent now at twenty thousand, four hundred dollars. That's a Bloomberg business flash. Now here's Michael bar with more on what's going on around the world.

Michael Karen, thank you very much. Brazilian President jay Eyre Bolsonaro reportedly told members of the country's Supreme Court that is election battle against leftist rival Luisa Natio Lula da Silva has come to an end, marking one step closer toward a concession. After his defeat Israel's fifth election in four years looks set to return Benjamin at Yahoo to power, with exit polls suggesting its strategy of forming an alliance

with the nation's far right and succeeded. Game three of the World Series, the Philly shut out the Astros seven zip. Philadelphia now leads the series two games to one. NBA, after the firing of head coach Steve Nash, the Nets lost to the Bowls one nine nine, the Warriors lost, and NHL the Rangers won in overtime against the Flyers one zip, the Islanders, Devils and Capitals all one, the

Bruins one in OT six five over the Penguins. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael barn This is Bloomberg, Nathan. Thank you, Michael. It is six nineteen on Wall Street Live from the Bloomberg Interacted Brooker Studios. This is Bloomberg day Break, brought to you

by b and Y Melin's Pershing. When why the world's most sophisticated wealth management and institutional firms rely on Pershing to at them improve profitability, create efficiency, attract talent, and manage risk at pershing dot com. Joining us now live from Washington, d C. Ahead of the Federal Reserve decision and the J PAL press conference. Bloomberg Global Economics and Policy correspondent Michael McKee, who will be there when Powell

addresses the media this afternoon, Mike, Good morning. Seems like seventy five basis points is kind of in the bag, and you kind of get this feeling that a lot of market participants are already looking ahead to December. That's pretty much the case, Nathan. It is all about December today because the Fed has pretty much told us it's gonna be seventy five basis points today. There are no new dot plots or projections for economic indicators. So the only thing that Walt really wants to know is what

do they do next? Because there's talk now of them stepping down to maybe a fifty basis point move, and there are questions about how high they're eventually going to go. So that's gonna be the focus for people, particular when J. Paul has his press conference. Yeah, I guess all the attention will be on the press conference. But I wonder how much the Chairman can or will say about what kind of impact the policy tightening is having on the economy when we aren't going to get those new economic

projections from the statement today. That's gonna be a kind of key question because if he sounds too devilish, then the markets are going to rally and that's gonna work against the FED. Financial conditions will ease. So he's got to walk a fine line between saying things are still

terrible and things are getting better. And that fine line is this sort of center point of an argument between two camps of economists, one that say says the inflation is still way too high and the FED must do what it can to stomp it out, and others who say, well, you know, the policies work with a lag, so maybe the FED should slow down, look around and see what impact it is already having on the economy. Now, you've been talking to a lot of FED governors, a lot

of Open Market Committee members ahead of this meeting. Given what they've been telling you, Mike, is there any possibility that we could see a little bit more descent in the vote coming out of this meeting? Well, it's always a possibility, but given the fact that it's a sort of baked in situation with seventy five basis points, it

doesn't argue that maybe there should be a descent. There could be because maybe somebody wants to get it on record that they think that it's time for the FED to slow down, but that really won't influence what the overall FED does, and it really won't influence the markets since the Fed has already told us what they're going to do, and you know, j. Powell is the one who counts, so his news conference will sort of override

the impact of any descent. Are you looking for any clearer signals from Powell today on what kind of impact the policy tightening is having on the economy, whether the FED is starting to get more open to the idea that the slowdown we're seeing could be leading to a recession. Well, that's kind of a key question that would lead you to the other question of how high rates should go.

And Paul again doesn't want to talk down the economy, but he also doesn't want to say it's too good because that will, uh maybe make him seem a little too hawkish. So be interesting to see how he describes it and how he would describe it some months out. The favorite indicator that the FED watches, according to j Powell, in terms of the yield curves, is three months and three month futures eighteen months out, and that curve is just about to invert. And he has said when that inverts,

it's a signal FED probably needs to cut rates. So it's going to be interesting to see how that part of the yeoh curve behaves when the FED meeting is over today. Okay, so just thirty seconds left here, Mike, what are you gonna ask Chairman Powell? I might ask him about that yel curve. That's going to be an important question for the future. And I'm also curious about I think I know what he's gonna say about politics and the fact that there's an election in a week.

But uh, you know, how's all this pressure weighing on him. Yeah, it's been interesting when we've started to hear even more Democrats ahead of the mid term, uh, signaling that they would like to see the FED slowdown on rates. We'll leave it there for now, Mike. You know you've got

a very busy day ahead of course. Michael McKee Bloomberg Economics and Policy correspondent with us this morning from our Bloomberg Studios in Washington, d C. But later on he's gonna be a few blocks west at the Federal Reserve for Chairman Powell's news conference two pm. Wall Street Time. We get the decision to thirties when the news conference begins. Our coverage begins at one thirty on a special edition

of Bloomberg Surveillance. Across Bloomberg Radio and television, you're listening to Bloomberg Daybreak, and Bloomberg Daybreak is brought to you by ancient accountants and advisers the right fit tax and accounting from that you need to succeed. Visit them at ancient dot com slash v i P to learn more.

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six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow, and we are just about three hours away from the open of US trading. It is time for the five things that you need to know to start your day, brought to you by Interactive Brokers. Interactive Brokers charges margin loan rates term three point five eight percent to four point five eight percent raise, subject to change. Learn more at ibkr dot com. Slash compair up first SMP futures are a little change this morning

ahead of today's feder Reserve decision. Consensus calls for a rate hackers seventy five basis points ste fold. Chief Economists Lindsay pass says forward guidance will be very important. I do expect that given the backdrop of a five decade low in the unemployment rate and in your four decade high and inflation, the Fed will continue to revive higher expectations beyond what the market is anticipating in terms of that terminal rate. Come three and that's stefs Lindsay Pisa there.

Stick with Bloomberg Radio and Television for complete coverage of the Fed with a special edition of Bloomberg Surveillance Alive at one thirty pm Wall Street Time. Well, recession calls are growing a bit aggressive rate hikes, Karen. When it comes to earnings, recession signs are likely to creep in next quarter. That's according to Mainstake Capital Chief investment officer David Couldla, earning is a little more resilient than what many had thought. So earnings not being impacted as much

by the slowdown in the economy the FED action. So what's the expectation we'll see that next quarter. We'll get our earnings recession next quarter. Main Stake Capitals David Couldla says it's unclear exactly when rate hikes will filter into the broader economy. Overseas, financial leaders made in Asia and share their thoughts on volatile global markets. Here's Goldman Sax

CEO David Solomon. When we've had these periods in the past, it takes somewhere between two and four quarters, sometimes maybe six quarters, you know, to rebalance. I think we're going through that rebalancing period. And Goldman Sax CEO David Solomon made the comments at the Global Financial Investment Summit in Hong Kong. HSBC CEO no Quinn is also there, Karen. He spoke with us about China's economic outlook and HSBC's business there. It's a consumption mafta that no when in

the world's can afford to just wolf away from. In my view and not need a huge Junecy is still a very significant supplier to the world as an ex world market. So I believe in the economic prospects of China. HSPCs nold coinciss China will find a solution to its COVID zero strategy. And we've been telling you about this

tentative pack between CBS, Walmart, and Walgreens. While CBS has agreed to pay about five billion dollars over the next ten years, beginning in three to substantially resolve i'll opioid lawsuits and claims against the company by states, political subdivisions and countries. And straight ahead your latest local headlines and this is Bloomberg. Thanks Staring at six thirty three on

Wall Street now fifty six degrees in Central Park. Forty five minute delays on the New Jersey Transit Northeast Quarter after an early suspension there. Michael Bars here with more on what's going on in New York and around the world. Michael, thank you very much, Nathan. Police in Newark, New Jersey, are looking for the gunman who shot and wounded two police officers outside of an apartment building in a residential neighborhood. Police believe the man was hiding in an apartment as

authorities were evacuating residents to safety. New York Mayor ros Baraka will bring this guy. It's a custody uh as soon as we possibly can, Mayor Baraka says. The wounded officers are in stable condition. The Supreme Court has rejected Senator Lindsey Graham's request to block a Georgia Grand jury subpoena. Bloomberg said Baxter as the story. This clears the way for Graham to have to testify in front of the Atlanta's Special Grand Jury, which is investigating efforts to overturn

the presidential election in Georgia. Graham had filed an emergency request asking the justices to halt the testimony, which is currently scheduled for November seventeen. The Court ruled that Graham's attorneys do have the right to object to questions on a case by case basis, which could leave substantial room for him to challenge questions or request from the Grand jury in San Francisco. I'm at Baxter Bloomberg Gay Break.

Former President Barack Obama, at a campaign last nine in Las Vegas, asked voters to support the incumbent Democratic Senator Catherine to Cortez Masta in next Tuesday's mid term election. He told to get out the vote rally that casting a vote is important for democracy. The only way to say democracy is if we together four. Masta is in

a tight race against Republican Adam Laxholt. Brazilian President Janaire Bolsonaro vowed to respect the constitution and authorized the government to start the political transition after his loss to Luis Ignatio. Lula de Silva. Israel's fifth election in four years look sent to return Benjamin net and Yahoo to power, with exit polls suggesting his strategy of forming an alliance with

the nation's far right has succeeded. The suspect accused of breaking into speaker Nancy Pelosi's home in San Francisco and attacking her husband, will remain behind bars without bail. An attorney for David the pomp entered a plea of not guilty. San Francisco District Attorney Brooke Jenkins said this atten at shows the nation's politics have become too heated. We have become a society that thinks it's acceptable to incite violent acts against our political leaders, and we can't be that

type of America. B A. Jenkins. Air ate sirens sounded in South Korea after the North client about a dozen missiles in its direction. Today Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven journalists and analysts more than a hundred twenty countries. Michael barn this is Bloomberg, Nathan, Yes it is. Thank you Michael, six thirty six on Wall Street and John Sesshires of Bloomberg. Sports Update brought

to you by CHRCE State outy all right, Nathan. The World Series blowout. The Phillies tied a record with five on runs. The Astros had only five hits. The Phils won Game three seven to nothing. They leave the series to to one. Bryce harpergot him going two runs shot first, Danny Alec Bohm, Brandon Marsh both with homers and inning later and then in the fifth, Kyle Schwarber, with a man on, went back to back Lauise Hoskins. All five

homers came off Houston's plans of the Colors. The Astros were shut down by Rangers Suarez and four Philly relievers. Game four is tonight. The soap opera continues in Brooklyn as the Nets turn of surprising firing and coach Steve Nash, considering how early in the season it is, g M. Shawn Marks called it more of a mutual decision. We both felt this was this was time. It was certainly training in that way, and to be quite frank, the team was was not doing what it was supposed to

be doing. You know, we're we have we've fallen um from our goals of meeting our goals, and it was it was time now because we still have lofty aspirations of where we need to get to. And then came the news of who was expected to replace Nash. M Judoka, currently suspended by the Celtics. There was a relationship with the Celtics employee, reportedly inappropriate text messages. He didn't coach the Celts for the NBA Finals last season. Jacque Vaughan

coach the Nets. Last night they felled up two and six lost at Barkleys to Chicago one O eight to ninety nine. Is the Bull. Zach Lavine scored twenty fourth quarter points. Y out spot the next play himself Local hockey all pre teams one the Arrangers one nothing with the Flyers on a Chris Cride and breakaway go with less than a minute ago with over time, the Islanders won three one in Chicago. The Devils won five to at Vancouver. Former Giants coach John McVeigh has passed away

at nineteen one. John Stash Bloomberg Sports thanks John sixty seven on Wall Street time to take a look at stocks some of the names moving in the pre market with Bloomberg Radio and TV Markets correspondent Crety Gupta and Crety Karen just mentioned that CVS is confirmed it's part of the major opioid settlement that reportedly Walgreens, Boots Lines, and Walmart are part of as well. But CVS just

reported earnings as well. They did just report earnings there came out with a very actually kind of beating on the EPs front. In the cash flow front, remember, Nathan, liquidity is a really important part of the story right now. They did, however, lower their full year guidance, so that's going to be significant. Nevertheless, it looks like investors kind of looking through it. CVS is not only the name of the company, it's also the ticker. Shares up about

five point two percent in the pre market. But I guess that they are. They did lower their full yer guidance, so I'm curious to see what they certainly say on their earnings call. Yeah, and speaking of earnings, also got to talk about a m D that's one of the biggest movers this morning. It absolutely is a m D. Advanced micro Devices as is otherwise known, ships about four percent in the pre market now. They came out and

they actually beat all those profit estimates. Now, this is really important because a lot of these chip companies have been talking about the global macroeconomic kind of backdrop in the slowdown that you're seeing, especially the supply chain issues that are really eating into their bottom line. A m D is doing something different though, They're diversifying, and that's going to be a really key part of the strategy.

It's something we've seen with N Video as well, for example, diversifying not only from graphics chips, but also into things like data warehouses that could one day power the metaverse. Advanced micro devices is no exception. They're actually looking to expand further into server processors and this is going to offset some of the slumps that you're seeing in the personal computer market. Remember that's something that we heard from HP and from Dell as well, that the PC market

is really slowing down. It looks like a m D for now is in the green, Nathan, Like I said, the shares up at four point two percent in the pre market, and we also got some earnings creaty from a company that might be something of a bell weather for the pandemic, reopening right a little bit, a b n B for Airbnb down about six percent in the

pre market. Now, their fourth quarter outlook really disappointed those forecasts that you were starting to see, is that perhaps the consumer isn't actually looking at pursuing baby higher cost rentals. That was a big trend during the pandemic where people remote working. You could go to Hawaii and did work for a company here in New York a lot of my friends. So that not better at all, but the it looks like that trend is is kind of dropping a little bit. A lot of those returned to work.

Um trends are eating into their bottom line. Is nevertheless a b n B is your ticker down six percent? Nathan, Yeah, I'm kind of forgotten about that trend now. I'm feeling a little bitter is a little this morning. Thanks for that, creatycod, the Bloomberg Radio TV Markets correspondent. Creaty grouped of course waiting for the market open as well. With the FED decision later on this afternoon, could see some more volatility

there as well. But right now futures are trading little change, with SMP futures down to point, Dow futures down forty four, naz dec futures higher by twelve points. This is Bloomberg and Bloomberg Sports is brought to you by Outing Don't

let someone else drive off and the Outie Model. You've always wanted to visit your local price 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 apt and at Bloomberg Quick Tape. He's a Bloomberg Business Lash and I'm Karen Moscow and SNP and OW futures are little changed to lower. On NASDACK

futures are still on the rise. Let's go to the first We're breaking news desk for today's morning call. Here's Bell Maloney, Bill, good morning, Hey, good morning, Can that's right. US futures are trading mixed right now at debt futures down forty eight points, s sames drop a point, and Nasdaq futures are still higher. By twelve, the US ten yeeld at four point oh four percent, Gold is up nine, oil is in the red, and Bitcoin is trading little changed.

Hong Kong rose two point four percent overnight, while up markets are little changed this morning, and back in the US on the economic frondayif ADP employment change, and at two o'clock the f O M C rate decision. After develous night, A m D toped estimates, Airbnb gave a disappointing outlook, and e A cut its forecast and regarding some of the earnings. This morning, CBS and s day

Lauder both beat estimates. In deal news, DuPont scraped the five point two billion dollar takeover of Rogers and another news credit. Swiss cut to one level above junk status by S and P Rabbit figs up. Echo Lab was cut to hold over at Deutsche Bank live from the first Breaking News Disco Bill Maloney, care all right, Bill, thank you, and to hear live breaking news over your Bloomberg type squawk on your termin I'll sue you a w K and CBS also announced a tentative settlement for

litigation over its alleged involvement in the opioid crisis. And now that's a Bloomberg business flash. Now we go to Michael Barr for a check of what's going on around the world. Michael Karen, thank you very much. Senior Russian military leaders are said to have recently discussed the use of nuclear weapons on Ukraine. The New York Times reports that's according to senior American officials, US officials saying though they had not seen any evidence that Moscow is moving

nuclear weapons into place. Brazilian President Jayre Bolsonaro val to respect the constitution and authorized the government to start the political transition after his loss to Luis Ignatio Lula DeSilva Game three of the World Series. The Philly shut out the Astros seven zip. Philadelphia now leads to the series two games to one. In the NBA after firing head coach Steve eve Nash, the Nets lost to the Bulls

on the Warriors lost. N HL. The Rangers won in overtime against the Flyers one zip, the Islanders, Devils and Capitals all one, the Bruins one in OT six five over the Penguins. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Karen,

all right, Michael, thank you. It is sixty nine on Wall Street, and we turned to news and science and technology now with the Bloomberg n j I T STEM Report, brought to you by New Jersey Institute of Technology, ranked a top one hundred national university by US News and World Report and number fourteen in the nation on Money's Best Colleges List. Learn more at n j I T dot E d U. Now here's just making news and science, technology, engineering,

and math. Amazon dot com is freezing staffing levels and it's profitable advertising business as it takes more measures to align expenses with slowing sales. Sources say Amazon will continue to fill vacancies and its advertising business, but won't create any new positions. Amazon's advertising business, largely sponsored search results on its web store, generated more than nine and a

half billion dollars last quarter. China is ordering steps that will severely curtail shipments in and out of the world's largest iPhone factory. Beijing is imposing a seven down lockdown of the area in sheng Su. That would be a seven day lockdown to the area. That's after the number of COVID cases in the city almost quadrupled from Monday to Tuesday. Hong Kong is fighting to prove it's still a dominant financial center. That's despite three years a tough

COVID restrictions and political upheaval of FIC. You'll say, the city's advantage is its super connector role to mainland China. To show off its comeback, Hong Kong is holding a summit this week that includes top bosses from all of the biggest global banks. And that's the Bloomberg n j I t Stem Report. Nathan, all right, Karen, thank you.

We are live from the Bloomberg Interactive Brokers Studios, where the six fifty one on Wall Street Time Now to check what's going on in d C. Besides today's Fed decisions, some of the other top stories in our nation's capital include President Biden slamming Florida's governor as Trump incarnate. Also making news, US officials saying Russian military leaders discussed using nuclear weapons in Ukraine, Saudi Arabia and the US sharing intel on a possible attack from Iran, and the Afghanistan

watchdogs saying the Biden administration is shutting his queries. Let's get more on some of these stories now. Bloomberg Government

reporter Emily Wilkins joins US from the Nation's Capital. So, Emily, President Biden's back on the campaign trail, but in his latest appearance it almost feels like a preview of coming attractions in it absolutely does neat that it was an interesting chance for Biden decide to decide to go to Florida rather than some other states that you know, voted for him and supported him and have a few more competitive races. Of course, they have a competitive race for governor.

Charlie Chris is running against Ron De Santis, who has mentioned very often as a potential front runner for the Republican presidential nominee in two if Trump doesn't win. And part of the reason is that there is a lot of overlap between how de Santis uh speaks, the style that he uses, and the style that that Trump uses. And so you did see Biden go ahead call that out. It really a reminder that as soon as midterms are done next week, they're definitely going to be people in

d C who pivot toward the presidential election um. And you know, that's also an interesting dynamic just because you did see the two of them work pretty closely together when Hurricane Ian slammed into Florida. The two Biden into Santis had a solid working relationship. They both complimented how each other handled everything. But you know, given what we saw from Biden on the campaign trail yesterday, it is right back to politics as normal. So is this a

sign that the pivot is happening a little early? Emily that Democrats may be acknowledging what we're hearing from a lot of analysts that the Democrats are set to lose quite a number of seats in the House next week. I mean, I think Democrats understand the level of trouble that they are in. Uh. Headwinds were always going to be against them. The fact that Biden's full numbers were low and remains low hurt them. The fact that inflation is high and has remained high has hurt them. Uh, Democrats,

You've seen them really struggle. I mean you have started to see seats where Biden one by twenty percentage points come into competitive territory. And that is just a huge flashing red light for what's going to be happening here with with the House. And it's notable that you know, when Biden was on the campaign trail, it's not that he was out there for the House or for the Senate.

He was campaigning with Charlie Chris, who is seeking to be governor, which you know is is certainly obviously a position of power, but not one that Biden's going to have to directly interact with every day in d C. As he does with members of Congress. Right, ull, let's

turn into some geopolitical developments this morning. There have been quite a few, uh, including this report that Michael mentioned from the New York Times that could potentially back some of President Biden's earlier warnings about the nuclear threat coming out of Russia. Yeah, this is only really going to

heighten concerns around that threat. The New York Times is reporting that senior Russian military officials recently had conversations to discuss when and how Moscow might use a tactical nuclear weapon in Ukraine. Uh. We know that from reporting that President Vladimir Putin was not a part of those conversations, but just the fact that you have senior Russian military leaders even having discussions was very alarming to the Biden administration.

American officials are still saying they have no evidence that the Russians are moving forward with nuclear weapons, but of course this is such a sensitive subject. Tensions are so high right now that even the fact that these conversations took place, um is really of hike concert. There has been a very close watch on Russia, very lots of

questions about what Russia might do next. Um, given that that they are you know, there are plenty of signs that they are are losing this war in Ukraine and what that's going to mean as far as their next move goes. Also, some really interesting reporting from Bloomberg News this morning about intel sharing between the US and Saudi Arabia about Iran. Very interesting. Yeah, the U s and Saudi Arabia of v charring information indicating that Iran my

attack Saudi Arabia or other nations sometimes soon. And this is of course leading a Washington and uh Iran UH in Saudi Arabia rather to adjust their military posture. UM. Folks who talked with Bloomberg for the story as well as for the Wall Street Journal, who also reported similar UH said that they are part of the attacks could be an effort to distract from nationwide protests UH in

Iran that have royal the country in recent weeks. UM, And I think again, this is just another area where there are lots of questions about about what could happen, and the US is very much in a position of being aware, being alert, UM and and trying to continue to gather intel on what might be happening and races some questions as well about the U. Saudi relationship, given that it's not exactly been warm over the last several

months following the OPEC decision. It absolutely hasn't. There's definitely been a lot of frustration there. President Joe Biden said that he plans to recalibrate the two countries relationship with OPEC UH and he has a lot of concerns I think just in general about Mohammedan Salon Solomon, the leader

of that country and and what he's done in the past. UM. At the same point, I think there is also again UH, the U s And and Saudi Arabia are brought together by the technical needs of the region, the interests of both in the region, UM, and just making sure that that going forward their interests are protected. All right, Emily, Thanks as always. Bloomberg Government reporter Emily Wilkins with us

this morning from the nation's capital. Read more on all these stories of Bloomberg dot Com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg one and one oh five point seven FM h D two. You'll definitely want to tune in beginning of one thirty pm Wall Street Time on a special edition of Bloomberg Surveillance ahead of the FED decision at two Chairman Powell's news conference

at two thirty. We'll be carrying you along as ever when the FED decides later this afternoon, Futures Trading little changed ahead of that Bloomberg surveillance. The morning edition is next for Karen Moscow. I'm Nathan Hager, and this is Bloomberg