Bloomberg Daybreak: November 7, 2022 - Hour 1 (Radio)

in New York's governor's race hand the mid terms. Plus the CDC warns of the surgeon covid flew and RSV on Michael bar more ahead, I'm John Stage, Aaron Sports. Big win for the Jets, that upset of the bills

the Rangers lost, and lets we signed their closer. That's all straight ahead on Bloomberg day Break on Bloomberg eleven, FREEO New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x M one nine and around the world on Bloomberg Radio. Come and via the Bloomberg Business app. Good morning, I've Nathan Hager and I'm Karen Moscow. In US Dock index

futures are on the rise this morning. We are coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures have eight points this morning, Down futures have eighty five, and NASDACK futures up about sixteen. The decks in Germany's up seven tenths of a percent, and the tenure treasury up four thirty seconds shield four point one four percent. The yield on the two year

four point six seven percent. Nathan Karen. The rise we're seeing in futures this morning could build on Friday's rally on Wall Street, it saw the SNP five snap of four day losing streak stilt. The index is down twenty one percent in two and on track for its worst year in at least a decade. Alan Zaffron is founding

partner and co CEO at I e Q Capital. What we are fearful of, and if you're parish, is that the FED is only going to pivot when the p M is the Purchasing Manager Index, which is a broad measure of economic activity. If it were to really plummet, the said would have no choice but to do so, and that probably only happens coincidentally with the labor markets starting to get out of control. I e Q Capital's Alan Zafran says FED rate hikes will take six to

twelve months to work their way through the economy. Well, Nathan, the attention is we turns to inflation. Let's take a look at the economic calendar, with Bloomberries if any down Judas topping this week's list, the October consumer price and except for Thursday and tracking the ever rising cost of living post pandemic economist the inflation running hot at about eight percent year over a year, keeping the federal reserve on the offense. Now, wages are on the rise, but

inflation is outstripping the games. Hence a lack of confidence in America's economy and the University of Michigan consumer sentiment and except once again to run their record low ex set for Friday. Then eat del Judai s Bloomberg day break. All right, Vinny, thanks, it's also another busy week for earning.

Let's preve you that with Bloomberg's Charlie Pellett. With about four hundred thirty companies in the SMP five hundred reporting so far have reported positive earning surprises, according to data compound by Bloomberg. Peter Roppenheimer is chief Global equity strategist at Goldman Sachs International. This is not a disastrous earning season, but certainly not nearly as strong as we've seen previously.

And the key thing that's happening, and we've been arguing this for some time, is that margins are starting to come under pressure as a result of these high input costs. Among the company's scheduled to report this week, Activision Blizzard asked Rosenca, BioNTech, Occidental Petroleum, and ribviean automotive in New York. Charlie Pellet Bloomberg Daybreak. All right, Charlie, thank you about

looking at earnings longer term. Goldman Sachs is lowering its estimates for the SMP five hired for each year till four. The bank strategist say, margin contraction in the third quarter signals more pain ahead. Goldman is not changing it's here end targets for the SNP. It still thinks the index will drop another four and a half percent this year to thirty six hundred before rising to four thousand and three.

I mean well, Karen Morgan. Stanley's Michael Wilson says investors should stay bullish on equities ahead of this week's midterm elections. Wilson correctly predicted this year's slump in stocks. He says if Republicans win at least one chamber of Congress, it could provide a catalyst for lower bond yields and higher equity prices. Well. Turning to corporate news, now, we're watching shares of Apple this morning. They are currently down more

than one percent in early trading. The company expects to produce at least three million fewer iPhone fourteen handsets than originally planned this year, and Bloomberg Daybreak Asia anchor Bryan Curtis has more from Hong Kong. Bloomberg sources say the company and its suppliers now aimed to make about eighty seven million devices. That's down from ninety million. The reduction is due to softer demand for the iPhone fourteen and fourteen plus that adds to supply issues in places like

Jung Joe, China. The plant there is under a COVID lockdown. You know Kong Brian Curtis, Bloomberg Daybreak, Brian, thanks. We continue to see job cuts in corporate America. Facebook parent Meta Platforms will reportedly start laying off thousands this week. According to The Wall Street Journal, The cuts could come as early as Wednesday. Met has been struggling with growing losses,

and it's been investing heavily in its metaverse business. Meta shares, which are down seventy three percent this year, are rising this morning, up more than three percent in early trading. Well, Nathan, Twitter brought the acts down hard last week on close to thirty seven hundred of its employees. Now it's asking dozens of them to come back. Sources tell us the company decided the employees were either fired by mistake or

too essential to the changes. New owner Elon Musk wants to make one of those changes, adding verification checkmarks for subscribers to Twitter's monthly Blue service that's been delayed till Wednesday to avoid mid term election chaos. Well, the world's focus for the next couple of weeks, Karen will be on the health of the planet. The Seven Summit is underway in Egypt, the United Nations Annual Climate Change Event is beginning with discussions on reparations or compensating poorer nations

for the damage from emissions produced elsewhere. We get more from Bloombergs use of kamal l Dean in Charmel Shake. We've got over one hundred heads of state to hund delegations from all across the world, and they've set apart a little bit lower. I would say they admit that because of some of the risks, everything of the Ukraine War to be ongoing, to your political statics in China

and the US, it's gonna be harder to get things going. Nonetheless, they want to show some results, and they already to get contraction on adding a little bit of a controversial item to the attenda, the loss and damage items that this is related to unchecked cossal fuel use that cause economic destruction in disproportioned ways. Bloomberg's use of kamal l Dean reports. The leaders of Germany, France and the UK

are appearing at the start of copy. US President Joe Biden and Brazil's president elect are due to appear later on well. Finally, Nathan Warren Buffett's Berkshire Hathaway has taken a beating on auto insurance. They conglomerate reported and nine hundred sixty two million dollar loss on insurance underwriting in the third quarter. That's the worst quarterly loss in a year. Auto insurers have struggled to keep pace with higher used car prices and the rising costs of accidents. And this

is Bloomberg Max Haaren. It's five oh seven on Wall Street. Got some showers sixty degrees in Central Park the northbound Van Wick Off ramp to the westbound Belt Parkway is closed for an accident investigation. Michael barrs here with more on what's going on in New York and around the world. Good morning, might call Good morning Nathan. It was the final weekend of campaigning before Tuesday's mid term elections. President Joe Biden campaign for New York Governor Kathy Hokel at

a rally and Yonkers Sunday. Biden, hoping to give the incumbent a last minute boost against Republican challenger Lees Eldott, poles show the race between the two narrowing. Biden criticized former President Trump and the Republican Party's record on the economy. What's gonna happen the next couple of years is going to have more to do with what this country looks

like twenty years from now than anything else. Congressman Zelden campaign at a rally in Rochester, promising, if he's elected governor, he's going to crack down on crime, and those state employees in charge of fighting it, you're going to emergency here in the state of New York. Meanwhile, former President Trump urged Florida voters to support Republican candidates in Tuesday's mid term elections. This is a year we are going to take back the House. We are going to take

back the Senate. We're going to take back America. We're going to take Trump spoke at a rally in Miami with Florida Senators Marco Rubio and Rick Scott, a former director of the f d A, is concerned that the US is not prepared for the current virus season. Bloomberg said Baxter as the story the US has center in cold flu, RSV and COVID season, and former director Scott gott leeb on CBS has heard here on. Bloomberg says some past mistakes are getting in the way of new policies.

We know wearing a mask if you have the flu rs V when you go out is effective at preventing forward transmission. Nobody wants to say that. So I think that there's a lot of reluctance now, in part because of the failures of public health messaging during the pandemic and things we've got wrong at the backlash toys. So we don't have a good solution for what we're entering right now. Got Leeb says mistakes should have been made

during COVID should not affect medical policy going forward. In San Francisco, I'm at Baxter Bloomberg Gab break authorities continued to investigate in New York City high rise fire over the weekend that injured over three dozen people and was traced to a faulty lithium ion battery. It is the latest in the fast growing series of battery blazes that

have fire officials concerned. The fire has burned the dramatic and rare rope rescue twenty stories above Manhattan's East fifty second Street, a few blocks from the United Nations headquarters. Global used twenty four hours a day on airand on Bloomberg Quick Take Power about more than twenty seven hundred journalists analysts more than a hundred twenty countries. I'm Michael bar This is Bloomberg, Nathan. Thank you, Michael. Almost five ten on Wall Street. Time for the Bloomberg Sports Up Day,

brought to you by Tri State Autie. Good morning, John stash Our, all right, good morning eight of the Jets of an underdogs almost every week. They were eleven point underdogs that met live. Buffalo came in and a FC best six and one, three wins by at least three touchdowns. But the Jets sat Josh Allen five times, intercepted them twice, and twice got themselves into the end zone. Files show Blitz takes the snout hard to run up the middle

of the five. What Jeck blocks down? Ryos motion first and goal at the second back to fro Zacholson scream right, hobbson half the ten, half the five, which is the good He's across the goal, Jet cluespn Eric the cost. The game was tied when the Jets went on our thirteen play eighty six yard drive at ended with a Greg's airline go ahead field goal. They upset the Bills seventeen. They're only half game behind Buffalo game last night to

a FC Division leaders who went overtime. Kansas City beat Tennessee. Patrick Mahomes through the ball sixty eight times. Tom Brady threw at fifty eight the last one of ten pass Sampa Bay's only touchdown of the day. They beat the Rams in the battle of the last two Super Bowl winners, both of whom struggling this year. Green Bay really struggling, lost to the Jets, loss of the Giants, and just

lost to lowly Detroit. Aaron Rodgers intercepted three times. The sound of Timmy Trumpet playing Narco will continue to be heard at City Field for the years to come. The Mets locked up all star closer Edwin Diaz, who was a free agent five years hundred two million, most of it for a reliever. The Nets laid down six requirements that Kyrie Irving must meet before they consider lifting his suspension.

The Rangers lost to Detroit three two and overtime. John Stash, Howard Bloomberg, Sports Nathan all Right, John Thanks s S and P. Futures up twelve point, Staff futures up at futures are higher by thirty three points. You're listening to Bloomberg Gaber Bloomberg Sports is brought to you by Autie. Don't let someone else drive off in the Autie model.

You've always wanted to visit your local tri 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 for Bloomberg Business out and at Bloomberg Quick Tape is a Bloomberg business clash, and I'm camerin Moscow and US dot Index futures are on the rise this

morning after dropping earlier. European shares are higher, led by travel shares, and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now is in P futures or up about sixteen points now futures up a hundred forty three NASDACK futures up forty the decks in Germany's up one percent. Can your true a sure? We have five thirty seconds, you have four point one three percent and a yield in the two year four

point six seven percent. NIMEX screwed oil is it will change in ninety two dollars fifty six cents of Barrel comics schooled that a third of a percent, or six dollars. At sixteen eighty two sixty announced the euro point nine nine nine one against the dollar, British found one point one four six five and the end one forty six point four and nine. And Bitcoin this morning is down one point seven percent. It's a twenty thousand, seven hundred

eighty dollars. That's a bloomberg business flash. Now here's Nuchael bar with more on what's going on around the world. Michael, good morning, Good morning, Karen. Election day is tomorrow, but already more than forty million Americans have cast early ballots. Republicans are optimistic about winning enough seats to retake control of both the House and the Senate, while Democrats insist they are poised for a better night than many expect.

The COP twenty seven You and Climate talks began in Egypt, with a deal to discuss how rich countries can help pay for the damages caused by global warming Elsewhere. Recent climate disasters, such as the floods in Pakistan have put the issue back into focus. In the NFL, the Jets upset the Bills seventeen. The Patriots won, the Commanders lost. The Ravens play the Saints tonight in the NHL. The Rangers lost in O t to the Red Wings three

two in the NBA, the Wizards lost. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more of than hundred journalists and analyist more than a hundred twenty countries. I'm Michael bar and this is Bloomberg, Nathan. Thank you, Michael. It's five nineteen on Wall Street Line from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak and Dennis Gartman's back with us this morning, the chairman of the University of Akron Endowman Investment Committee,

former publisher of the Gartment Letter. At the start of a really busy week for markets, with elections, earnings, and inflation all in focus, Dennis, what are you focusing on this week? Elections have so the focal point for everybody.

Just given given the fact that the elections are tomorrow, and given the fact that they're as tight as they're going to be, however, I think that the Republicans will end up sweeping the House, probably winning thirty five seats, and I actually think that they'll end up winning the Senate probably fifty two seats, maybe fifty three seats at most. That'll be supportive to share prices for the near termament at least people will become enthusiastic about a Republican capability

to control the House and the Senate. But it also means it will have gridlock government for the past for the next two years or so, as everybody gets ready for the next presidential elections. So the election cycle stops tomorrow and begins Wednesday again, all at one time. I've been very barish share prices since the start of the year. I continue to be barish for share prices at this point.

I think the Fed continues to tighten monetary policy far longer than anybody had anticipated, takes rates far higher, and takes them for a longer period of time than anybody had thought originally. So I haven't changed my opinion even slightly. Nathan, I want to hone in a little bit more on your view and where rates go from here. But we did get a note this morning from Mike Wilson over Morgan Stanley, who has also been pretty barish on this

market and called the drop in stocks. He's saying that we could see an equity rally off the back of tomorrow's election. Obviously, it sounds like you agree with that. How big a rally could we see? Do you think? First of all, let's say we've we've had a huge bounce in in a a very normal technical bounce from the lows made three or four or three or four weeks ago. I followed the CNN Fair and Green Index, which has gotten to fourteen. Anytime it gets below twenty,

you're going to get a bounce of some sort. You get oversold. And of course, the for three weeks we've taken the stock market, we've taken the down from what twenty nine thousand to thirty three thousand. That's probably as much of a rally as you're going to get. I think the high that we saw two weeks ago is probably going to be the end of it. Uh. And so I tend to disagree a little bit with Mr

Wilson at this point. I think we've probably seen this, But I think we've already discount of the fact that the Republicans are going to sweep the House and the Senate. So I'm not sure that there's much left on the upside. At the same time, the CNN Fair and Green Index has gotten to sixty one and turned lower, and when that gets to that level, it usually means that the rally has run its course and the next next leg

down is coming. The problem is that the rally was on very light volume, and good, good rallies, strong values, rallies that have sustainability, have to have increasing circumstances increasing volume,

and we've not seen that. So I continue to think that it's a bear market that the rally we've already had has just counted the fact that the Republicans sweep the House and the Senate tomorrow, and given that the possibility of a red wave tomorrow and the return of divided government, what will that mean for equities as we

head toward that next election? In I think the the overwhelming fundamental that's driving prices has been the fact that the FED has driven its balance sheet from nine trouillion dollars to nine trillion dollars over the course of the last decade. And as pro must has said, and in order to can continue to remain consistent, has said that it will be reducing the size of that balance sheet by its billion dollars a month. They're taking the fuel

that had driven the bull market away. It's as if you've taken your foot off the gas pedal and the car stalls. I think that that's the overriding fundamental. If you get a bounce predicated upon the better action by the part of the Republicans of the House and the Senate to morow use that strength to sell into and reduce your positions get smaller and not larger. At this point, we also got a note from Goldman Sacks cutting earnings estimates for the SMP for this year and next. What

kind of earnings compression do you see for stocks? Probably ten or fifteent reduction and earnings over the course the next year or two, And that means the price earnings multiple has to come in again. It's been coming in for the past six or seven months, the longer than that, actually, and I think it continues to come in. So I agree with Goldman Sacks. I think earnings are going to be the monsterbly lesser, demonsterly smaller than had been anticipated

three and four and five and six months ago. The market had anticipated good earnings. Learnings are coming in less than expected, and I think that that's likely to continue for a long period of time. So again, use strength to sell into, use strength to reduce your positions. Here, she or loses the least amount of money in a bear market will be the winner. As I said, we'll hone in a little bit deeper into that view, including where the fed path goes from here. Dennis Gartman is

with us for the hour. Dennis Gartman, former publisher of the Gartment Letter and now chairman of the University of Akron Endowment Investment Committee. Looking ahead to the market open this morning, futures are pointing to more gains after Friday's rally. SMP futures are up eighteen points down, futures up a hundred sixty one, and NASTACK futures are higher by fifty

one points ten. Your treasury is up for thirty seconds, the yield down nearly two basis points to four point almost four point one four percent yield on the two year four point six eight percent. NIMEX crude little changed on the session, up five cents ninety two dollars sixty six cents of barrel Comac sculled a four tenths per cent, or six dollars thirty cents sixty eight two ninety for announce of gold. This is Bloomberg. Bloomberg day Break is

brought to you by Peapack Private Wealth Management. Peapack Private Wealth Management knows that the portfolio is more than a collection of assets. It's a path to your future. Visit Pepack Private dot com and begin your financial legacy today.

Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg eving freo to Washington d C, Bloomberg on to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country, Sirius XM Chentle one nineteen and around the Blobe, the Bloomberg Business at and Bloomberg Radio dot com. This is Bloomberg Daybreak and it's five thirty on Well Street. Good morning. I'm Karen Moscow, I'm Nathan Hagar.

Bloomberg Daybreak is brought to you by se I. Imagine your asset management firms operational infrastructure as it can petitive advantage. Let se I show you how at se I C dot com slash I m S and we're just about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. Well, Investors this week will be keeping a close eye on key economic data. The October Consumer Price Index is due out Thursday, and University

of Michigan Consumer Sentiment Index comes out Friday. Paid in in Regal Chief US economist Jeffrey Cleveland says jobs data from Friday suggests the FEDS still in the thick of its inflation battle. But wage growth data has slowed, maybe a little bit, but point four month and month is still pretty strong. We're hanging out around five percent year on year wage growth, and that is not consistent, in

my view, with two percent inflation. I think it's far too soon for the Fed to say they're putting the brakes on here. And paidon in Regals, Jeffrey Cleveland says the Fed wants to see less job growth because the labor market is out of balance. I meantime, Karen, we're

seeing turmoil in tech labor. This morning. Wall Street Journal reports Facebook parent meta platforms will lay off thousands potentially as early as Wednesday, and Twitter, which cut close to thirty undred employees last week, is now asking dozens of them to come back. The Bloomberg Tech editor vlad Zabov says Twitter's moves likely don't reflect broader transit big tech. Months ago, twives prior leadership decided to come back on

spending on office space in order to preserve jokes. What we've seen in with Twitter cannot be extended to the proto tech in industry. It is a very unique situation and there's a lot of unpredictability because of Elon Mustine a Helm Bloomberg says more changes are coming to Twitter. The company alladed verification check marks for members of its monthly subscription service after tomorrow's midterm elections to avoid potential chaos.

Well seeking with tech Nathan Shares of Apple down one percent in early trading after the company announced it expects to produce less iPhone fourteen models than originally planned. In Egypt, Caring You and climate discussions are focused on how rich countries can pay for global damages caused by global warming. Netherlands Prime Minister Mark Rota spoke with Bloomberg speriencing Laquax

about moving forward on climate issues. We already are at this moment committing the one hut of billion to help their yes to the world also and also the global South to get on board with effecting climate change. Dutch Prime Minister Mark Roots is one of several world leaders at the COP twenty seven conference. US President Joe Biden is set to appear later this week. Futures this morning

on the rise. SNP futures up about seventeen points down, futures have onety four and NASDAG futures are up forty four. Straight ahead your latest local headlines, plus a check of sports. And this is Bloomberg. Thanks her three on Wall Street sixteh degrees in Central Park Out a crash westbound Belt Parkway off ramp to the northbound Van Wick and Michael Barr has more on what's going on in New York and around the world. Michael, thank you very much, Nathan.

Both President Joe Biden and his predecessor Donald Trump are hoping to provide their parties late boosts on the last full day of campaigning before mid term elections that could he shaped the balance of power in Washington. Biden is holding a roley this evening in Maryland as Democrats i retaking its governorship. Yesterday, the president campaign for New York

Governor Kathy Hoco at a rally in Yonkers. Biden, hoping to give the incumbent a last minute boost against Republican challenger Lese Helden, Poles showed the race between the two narrowing just a few days from the election. Biden criticized Zelden for voting with House Republicans against the American Rescue Plan that included money for police. Opponent had a choice. You could kick cops on the job or cave to his Republican leaders. I'll give you one guess what he did.

He cave. Former President Trump is set to stage his own event in Ohio, where his hand picks Senate candidate jd Events will be at his side. Yesterday, Trump urged Florida voters to support Republican candidates in the midterms. Trump urged voters to vote Republican and bring the House and sent it on Republican control this Tuesday. You must go out and vote Republican in this giant red wave, Uncle sham,

giant red wave that they're all talking about. The former president spoke at a rally in Miami with Florida Senators Marco Rubio and Rick Scott Ukraine President Voladimir z Lensky said Iron must be punished for what he called its complicity in Russian terror. Zelenski accused the regime in Tehran of helping to prolong the war and exacerbate its impact

on food and energy supplies. The CDC issued a warning of a surge in respirants or viruses from COVID, FLEW and RSV, especially among children, that threatens to overwhelm hospitals this fall and winter. And the power of ball lottery drawing is tonight, Oh lord. The jackpot is expected to be one point nine billion dollars. Okay, there you got news thy fre hours a day on here and on Bloomberg Quick Take Power got more than twenty seven hundre

journalist analysts more than under twenty countries. Michael Bart, this is Bloomberg. NA found my level. Thank you, Michael. Five on Wall Street time for the Bloomberg Sports Uptake, brought to you by Try stayed out. He with John stas all right, Nathan that Jets had that four game when he was drink and then laid an egg and yet another lost to New England. That led to many saying

same old Jets They're not saying that now. Not After a twenty seventeen upset of heavily favored Buffalo and met life Jet defense outstanding sack Josh Allen five times intercepted him twice, Jets put together a fourth quarter drive eighties six yards in thirteen plays. They had eight straight runs that Jets ranted for a hundred and seventy four yards. Drive took over six minutes, ended with a field goal that gave him the lead after once trailing by eleven.

They go to their bye week six and three, five wins in their last six games. Their coaches, Robert Salem, you know, I know a lot of people are going to be surprised, right. I don't think there's a person's surprise in the locker room. Um, it's a hard fall game. It's a damn good football team, world coach football team over there. Buffalo. Obviously they're they've got championship aspirations. But um, but I don't think there's a guy in that locker

room that didn't think we couldn't win. After the bye week, another game with the Patriots, a battle of last two Super Bowl winners. Both the Rams and Bucks struggling this year. Tampa Bay one on a Tom Brady ten fast with nine seconds left. Brady went over a hundred thousand passing yards for his career overtime Last night in Kansas City,

the Chiefs beat the Titans. Also over time with the Garden Rangers after leading to nothing, lost in Detroit three to two, then nets one twice over the weekend without Kyrie irving. His suspension will not end until he made six requirements laid down by the team. Mats have a lot of free agents crossed one off the list ed when Diaz struggled early in his met career, but tremendous this past season, and he has cashed in five years hundred two million, most of it for reliever. D has

averaged almost two strikeouts perking in his pitch. John Stash Bloomberg Sports Nathan Right John thank you five thirty seven on Wall Street time for the State Business Report with Bloomberg's de east Pellgreen Macy's is investing millions to fund minority owned businesses. The New York Times says the thirty billion dollars over five years will support underrepresented groups in the retail industry. More of the former cult firearms complex

in Connecticut is closer to being converted to apartments. Hartford Business says the Cult Gateway partnership could create forty five more apartments in two buildings there. The new offering comes as commercial demand for the space waynes Split Society entering New York's retail market. This is a maker of canned wine based cocktails. This journal says the drinks are being distributed at Total Wine and More and also through Go Puff.

The founder of the company is a former marketing exact for celebrities and Jersey Shore Restaurant Week is underway, multiple restaurants offering three course meals for as little as thirty dollars and twenty two cents. It's all designed to get you out spending during what's typically a slow patch before holiday spending ramps up, and this event runs through Sunday. With the Try State Business Report, I'm to these Pelligreen All right, Denise, Thanks, It's five thirty eight on Wall Street.

Blomberg Radios on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three affiliate radio stations around the World. I'm Steve Podas on K and X in Los Angeles. We're talking about the high cost of impounding Russian super yachts. I'm Corney Donahouan Can't Baby in Omaha Berkshire Hathaway takes a

beating on auto insurance wing on Quarterly Earning. I'm Gina Servetti and for w B b M in Chicago, I'm reporting that United Airlines has joined the growing list of companies withholding advertising on Twitter. For Now, I'm Klain heat KILM bloom Bag, dab did who a Dam and London. We've been reporting on officials agreeing to discuss climate reparations from rich countries at the COP twenty seven Climate Conference.

I'm Denise Peligrini atm W t AM in Cleveland. I'm reporting on Hamba's new plans self driving electric vehicles for the elderly and gen Z and those are some of the stories are twenty seven hundred Bloomberg journalists and analysts you're working on this morning at thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial

was written by the Bloomberg Editorial Board. Britain's new Prime Minister Rishi Sunac got a quick sign of trouble ahead when a quarrel over trade rules between Northern Ireland, Great Britain and the Republic of Ireland flared anew. When the UK left the European Union, it was understood that an open border between Northern Ireland and the Republic was essential, but this meant Brexit would require an economic border in

the Irish Sea. Britain agreed to a protocol making that stipulation in twenty but when protests in the North shut down the region's power sharing Assembly, the Tories moved to unilaterally cancel the protocol. A trade war between the UK and the EU is now a distinct possibility. The world needs Britain and the EU to be allies, not rivals. If Sunac wants to make a difference, a reset of UK EU relations would be a great place to start.

The editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or ope i n go on the Bloomberg terminal. This has been Bloomberg Opinion and Bloomberg Sports. Was brought to you by Autie don't let someone else drive off

in the outie model you've always wanted. Visit your local tri 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 Outland at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow. US Dock Index futures on the rise this morning, van

sell off stalling as some investors sent up here. Rate of disinflation has already begun and the mid term election results will be favorable to markets who check the markets every fifteen minutes throughout the trading day. On Bloomberg, Guess and P Future is up about nineteen points down. Futures have a hundred forty five and NAS day Future is up fifty four. The decks in Germany's up nine tenths

of a percent. Ten year treasury of five thirty seconds he had four point one three percent, and the yield on the two year four point six seven percent. Nine Max Screwed oil is down two tens per cent, or nineteen cents at ninety two dollars forty two cents of barrel co makes schooled up three tens percent or five dollars thirty cents at sixteen eighty one ninety announce the

euro point nine against the dollar. British found one point one four four four and again one forty six point six six and bitcoin is down one point seven percent at twenty thousand and seven hundred fifty dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. Tuesday is the mid term elections nationwide. More than forty million Americans have already cast their bellot. The

election could shift the balance of power in Congress. North Korea's military says its recent barrage of missile tests were practices to mercilessly strike key South Korean and US targets, such as air bases and operation command systems, with a variety of missiles that likely would include nuclear capable weapons. The North's military said today it's missile tests were a reaction to last week's massive air force drills between the US and South Korea in the NFL. The Jets beat

the Bills. Twenty seventeen, the Patriots won, the Commanders lost. The Ravens play the Saints tonight in the NHL. The Rangers lost in overtime to the Red Wings three two in the NBA, the Wizards lost. Global News twenty four hours a day on air and on Bloomberg Quickdake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and This is Bloomberg, Nathan Fire, Michael, Thanks at SI forty nine on Wall

Street Life from the Bloomberg Interactive Brooker Studios. This is burg Daybreak, And Dennis Gartman is back with us now chairman of the University of Akron Endowman Investment Committee and former publisher of the Gartment Letter. Dennis. Earlier, we spoke about the potential for equity rally off the back of the mid terms. I want to dig into the economic data now that we're expecting this week. Of course, we

get the October Consumer Price Index on Thursday. Do you think we'll see further signs of moderation in inflation from the data this week? I think we'll see some further signs of moderation to to replicate your awards. I don't think we're gonna have a an untoward number coming out. I think it will be slightly less than than had been anticipated. And I think we've seen most commodity prices be somewhat under pressure over the course of the past

month or two. But pay attention to what's going on this morning in the gold market, pay attention to what's going on in the bond market, and pay attention to what's going on in the stock market. All three of them should not be rising together. Two of them are probably wrong. We'll see which ones are wrong. But I think that inflationary numbers are going to start turning back for the worst over the course of the next several months. But this week's CPI number will probably beneficial to share

prices modestly, so the opperative board here being modestly. So why do you think we're going to see more pressure on inflation longer term? Basically because the head's balance sheet remains extended. They said they're going to continue to cut it. But as I said earlier, we've gone from nine billion dollars nine billion dollars to nine trillion dollars. Actually it's downd all about eight point five billion. They need to take dollars out of it. Inflation is always an everywhere

a monetary phenomenon. With the lag, the lag has been uh, we're only six months to a year and taking it into the allowing the head to reduce the size of the balance sheet. And I think we have several years of higher inflation to ahead of us on balance so well, we're gonna have to get used to five and six percent inflation over the course the next several years, and I think that that's going to be incumbent, So be

careful out there. The thing that I find amusing to me is the fact that gold and bonds are rallying this morning. That shouldn't be happening. It's something it is happening, And pay attention to that fact. Again, as I said earlier this morning, use the strength and stock It is just to reduce the size of your exposure, to get less large, get less involved, become more involved in the gold market. And I think that that's the important to me.

The most important thing that I saw last week was the fact that gold had an outside reversal week, which is a very rare circumstance and new low and at a movement above the previous week's highs and the close above the previous week's highs, and it's not given back any of those games. So that's something to pay attention to beyond just stock prices. Watch what's going on in gold.

It's signaling something traumatic is about to happen. I know you've been watching gold for some time and it's really a fairly budged with all these inflationary pressures going on. But now with this call, where do you think gold

goes from here? Eighteen hundred or nineteen hundred dollars over the course the next several months, I think that's where we're gonna go where at one Now, the fact that it held in the low sixteen hundreds bottomed in November, in September and October, and Friday's action was extraordinary, rallying what fifty to fifty five dollars announced with especially following effect that you had an overtly barish article and the barons over the weekend about how bad gold has has

been the fact that those two things occurred at the same time of a very various article and in a very strong movement on Friday and an outside reversal week tells me that gold prices have seen their lows and want to go demonstrably higher. So as you come out of stock, prices move into a move into a bit of goal. I think that makes sense. I've done that for the University, and we're going to continue to do that when we meet next in two weeks for our

quarterly meeting. Yeah, I've just about a minute left here, Dennis. Of course, there's a lot of attention on where the FED takes rates from here, where the terminal rate's gonna be. Where do you think the Fed is going to say? I know you've been focused on the balance sheet, but where do you think rates go from here? For the Fed? I think we take the overnight said funds rate to five five and a quarter and at that point they'll

sit tight for a long period of time. If I've learned anything in the forty five years I've learned i've been in the market since that when the FED changes monetary policy from easing to tightening, or from tightening to easing, it takes rates far farther and takes them for a far longer period of time than even the most radical among us wants to believe. So I think we're gonna go to at least five percent, maybe five and a half, and then it then comes to pivot. The pivot meaning

they'll sit tight for a long period of time. It maybe several years before we actually see them pivot and take great slower So be prepared for higher rates for a protected period of time for the next several years. As always, Dennis, great to get your view. Thanks for being with us for the full hour here Dennis Gartman, former publisher of the Gartment Letter and now the chairman

of the University of acron Endowment Investment Committee. Karen Nathan, It is five three on Wall Street, time for the Bloomberg Law Report that's yet to the legal stories we're watching this morning from Bloomberg's Jeff Bellinger. More election lawsuits have been filed this year than in all of twenty by Democrats and Republicans, challenging everything from who can vote

to where ballots are collected and monitored. The Sixth Circuit rule that Experience did not violate the Fair Credit Reporting Act when it failed to remove any erroneous report of a bankruptcy from a man's credit report. The Justice Department reports the former heads of movie Pass and its parent company have both been charged with securities fraud and wire fraud. Bloomberg Law everything you need, all on one legal research platform,

including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, thanks, Now another legal story we're watching. Arizona defied a Supreme Court criminal precedent for decades until the Court specifically instructed this state that it had to allow defendants facing the death penalty to tell the jury that if they spared them

from a death sentence, they would never be eligible for parole. Still, Arizona did and runs around the Supreme Court decisions, creating a procedural maze that blocked a death row inmates relief at each turn, leading Justice Helena Kagan to call it Kafka esque. For more Bloomberg's doing, Grosso speaks to Bloomberg Law reporter Jordan Reuben. So that's why Justice Elena Kagan said, Kafka would have loved this case exactly so way she

put it. She says Costco would have loved this because Cruz loses the Simmons claim undirect appeal in the first instance, before the Lynch case, and then he tries again, and the reason he loses, according to the state, is because no, Simmons has actually always applied. It was just that Lynch told Arizona that it had to then apply the law. So it wasn't what's called a significant change in the

law according to Arizona. And that's super important for this case because it all comes down to this state procedural rule which says that on post conviction like what Cruz was trying to raise, he can only get the benefit if there was a significant change in law, and according

to Arizona, the Lynch holding wasn't a significant change. I thought it was odd that the state was still arguing in its briefs that Simmons and Lynch were wrongly decided by the court, and Justice Kagan told Arizona's attorney that she found that shocking and perhaps a bit insulting tell us about Arizona's arguments. So Arizona takes this sort of

hyper technical reading. They're saying, it's just the state issue that in the first instance, it shouldn't even get to the U. S. Supreme Court because it's a state court dealing with the state procedural rule, and so there is this kind of threshold issue at the U. S. Supreme Court of whether the justices can even really take a look at this because it's a state issue. And so there's this initial argument of whether we're even getting into the territory of dealing with the type of federal issue

that the U. S. Supreme Court can grapple with. And so that's one of Arizona's arguments that the U. S. Supreme Court really shouldn't even be getting involved. That's part of it. Another part is, according to this state procedural rule, they're saying it wasn't a significant change in law, despite how much that might seem to fly in the face of common sense. As Justice Kagan was pointing out during the argument, they're saying, it's not a significant change, it's

just now an application of the law. And so that's what brings up this situation where Kegan is pointing out the cruises blah in this procedural maze, no matter in which direction he turns. And that's Bloomberg Law reporter Jordan Rubens being at the Bloomberg's June Grosso catch more of that interview, plus analysis of the latest legal news by subscribing to the Bloomberg Law Podcast or downloading the show

at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law. Go and futures this morning on the rise, SNP futures up about nineteen points down, futures have a hundred fifty and NASDAC futures up fifty seven still ahead. On Bloomberg Daybreak, we have a check on the business headlines and all the news you need to start your day. And this is Bloomberg