Bloomberg Daybreak: November 7, 2022 - Hour 2 (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 done Stair Sharon sports big wins for the Jets and upset of the bills. The Rangers lost on mats re signed their closer. That's all straight ahead on Bloomberg day Break on Bloomberg eleven three O New York, Bloomberg one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine six, San Francisco, Sirius x M one nineteen and around the world on

Bloomberg Radio. Come and via the Bloomberg Business and good morning. I'm Karen Moscow, I'm Nathan Hegar. Bloomberg day Break brought to you by B and Y Melon's Pershing Learned by the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent,

and manage risk at Pershing dot com. Well US futures are higher this morning six oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg S and P Future is up twenty one points. DAL Futures up a hundred sixty two and ASDAG Future is up sixty two Tenure Treasury up four thirty seconds, yield four point one three percent, and they yield on the two year four point six eight

percent Nathan Karen. The rise in futures follows Friday's rally on Wall Street, which saw the SNP five hundred snap of four day losing Street. Still, the index is down twenty one percent in twenty two and on track for its worst year in at least a decade. Alan Zaffron is founding partner in co CEO at i e Q Capital. What we are fearful of and if your barish 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 FED 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 Zafferan says FED rate hikes will take six to

twelve months to work their way through the economy. Well, Nathan, the attention this week turns to inflation, and let's take a look at the economic calendar, with Bloomberries Vinny Dell Judai's topping this week's list, the October Consumer Price and exceet for Thursday, and tracking the ever rising cost of living post pandemic. Economists 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 that's set for Friday, they eat judaic Is Bloomberg Daybreak. All right, Vinny, thanks, another busy week for earnings as well. It's gonna preview

there from 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 Oppenheimer is chief Global equity strategist at Goldman Sachs International. And not a disastrous serving 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 schedule to report this week, Activision Blizzard asked Roseneca, BioNTech,

Occidental Petroleum, and Ribbean Automotive in New York. Charlie Pellet, Bloomberg Daybreak and Charlie, we're just getting earnings crossing the Bloomberg terminal from BioNTech, raising its forecast for the COVID vaccine itsels with Feiser, saying they've invoiced some three hundred million doses of an omicron adapted version as of mid October, and Nathan, we look to earnings in a long term now, Goldman sacks lowering his estimates for the SNP five hundred

for each year till four. The bank strategists say margin contraction in the third quarters signals more pain ahead. Goldman is not changing its year end targets for the SNP still thinks the indext will drop another four and a half percent this year to thirty six hundred before rising to four thousand three. Meantime, Karen Morgan, Stanley's Michael Wilson says investors should stay bullish on equities ahead of this week's midterms. 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 fields and higher equity prices well. Turning to corporate news, now, Nathan, we're watching shares of Apple this morning. They're down one percent in early trading. The company expects to produce at least three million fewer iPhone fourteen handsets than originally planned this year. Bloombergy Daybreak Asia anchor Brian 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 Cho, China. The plant there is under a COVID lockdown. You Know Kong, Brian Curtis, Bloomberg Daybreak, Brian thanks to continue to see job cuts in corporate America. Facebook Para meta Platforms will

reportedly start laying off thousands of workers this week. According to The Wall Street Journal, the cuts could come as early as Wednesday. Met has been struggling with growing losses and investing heavily in its metaverse business. Meta shares, which are down sev this year, are up nearly four percent in early trading on the news. Well Nathan, Twitter brought the acts down hard less 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 where either fired by mistake or are 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 being 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 cop twenty 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 caused by emissions produced elsewhere. We get more from Bloomberg's use of Kamal Eldin 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 risk everything of the Ukraine War to be ongoing, to your political spat between China and the US, it's gonna be harder to get things going. But nonetheless they want to show some results and they are ready to get contraction on adding a little bit of a controversial items to the attenda, the loss and Damage items that this is related to unchecked crossial fuel

use that cause economic destruction in disproportioned ways. Bloombergs use of kamal Eldin 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 Louis and Nacio Lula da Silva are due to appear later on, and futures are higher this morning. Nathan SMP future is up twenty four points to down futures of eighty three, nasday

futures of seventy seven. And this is Bloomberg. Thanks sharing at six oh seven on Wall Street, sixty seven degrees in Central Park. Gotta crash on the northbound hutch By exit eleven. More coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Michael, thank you very much. Nathan. It was the final weekend of campaigning before Tuesday's mid term elections. President Joe Biden campaign for New York Governor Kavie Hokel

and a rally in Yonkers Sunday. Biden is hoping to give the incumbent the last minute boost against Republican challenger Lee's Eldon Poles show the race between the two narrowing. Biden criticized former President Trump and the Republican Party's record on the economy. What's going to happen the next couple years is going to have more to do with what this country looks like twenty years from now than anything else.

Congressman Zelden campaign and a rally near Rochester, promising if he's elected governor, he's going to crack down on crime and those state employees in charge of fighting it. We are going to clear a climb 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're going to take back the Senate. We're

going to take back America. We're going to take Trump spoke in the 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 flew RSV and COVID season and former director Scott gott lab 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 got wrong and the backlash toys. So we don't have a good solution for what we're entering right now. Godlee says mistakes should have been made during COVID should not

affect medical policy going forward. In San Francisco, I'm at Baxter Bloomberg. Gay break authorities continue to investigate the New York City high rise fire over the weekend and injured over three dozen people and was traced to a faulty lithium ion battery. It is the latest and a fast growing series of battery blazes that have fire officials concerned. The fire spurred a dramatic and rare rope rescue. Twenty stories above Manhattan's East fifty second Street, a few blocks

from the u N headquarters. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts more than twenty countries. Michael Barren, this is Bloomberg Nathin. Thank you, Michael. Almost six ten on Wall Street. Time for the Bloomberg Sports Update, brought to you by twice State Daddy. Here's John sansh Our, Thanks Days and the Jets of it underdogs almost every week.

They were eleven point underdogs that met Life Buffalo came in an a f C best six and one three three wins by at least three touchdowns, but the Jets sat Josh Allen five times, intercept with him twice and twice got themselves into the end takes the snout harder run up the middle of the five. Jetlist motions Herson goal, the second Bactus Crozack Wilson screen, ro Cobbinson at the

ten half the five. He's across the goal touch the ESPN New York that calls the game was tied when the Jets won on a thirteen play eighties six yard drive ended with a Greg zir Wine go ahead field goal. They upset the Bills twenty and seventeen, only a half game behind Buffalo. The game last night to a FC Division leaders and went to overtime. Kansas City beat Tennessee. Patrick Mahomes through the ball sixty eight times. Tom Brady threw at fifty eight, the last one of teen passed.

Tamba Bay has only touched down of the day. They beat the Rams in the battle of the last two Super Bowl winners, both of whom are struggling this year and Green Bay really struggling. Lost with the Jets and Giants just lost to lowly Detroit. Aaron Rodgers intercepted three times. It's the Packard's fifth loss in a row. The sound of Timmy Trumpet playing Narco continue to be heard at

City Fields for the years to come. The Mets have locked up all star closer Edwin Diaz, who was a free agent five years hundred two million, most ever for a reliever. The Nets laid down six requirements that Tyrie Irving must meet before they consider lifting his suspension. The

Rangers lost to Detroit three two and overtime. John Stashward Bloomberg Sports Nathan thank you, John SMP futures right now twenty three points, Stown futures up an eighty Nastact futures are higher by seventy two points, and the tenure Treasury's up four thirty seconds for a yield a four point one four percent. This is Bloomberg. Bloomberg Sports was brought to you by Audie. Don't let someone else drive off

in the autie 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 Out and at Bloomberg Victaque.

This is a Bloomberg Business Flash and I'm Karin Moscow and us dot in Next Future is on the rise this morning as some investors that a period of disinflation has already begun and the midterm election results will be favorable to markets. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SMP Future is up twenty foinds Now futures have a hundred sixty three and nasdack Future is up sixty three the decks in Germany's

up about nine ten of upper cent. Ten year treasury up four thirty seconds, held four point one four percent.

They yield on the two year four point six eight percent. Nine. Next, Scrude oil is of less than a tenth of upper cent, up six cents at ninety two dollars sixty seven cents, and barrel comics gold up two tens percent or three dollars ten cents at sixty and seventy nine seventy an ounce the euro point nine you against the dollar British found one point one four or five seven and again one forty six point six nine, and bitcoin is down one point eight percent at twenty thousand and seven hundred

fifty dollars and again. Biotech bi on Tech raising its forecast with the COVID nineteen vaccine it sales, with Fiser saying that the partners have invoiced some three hundred million doses of an omicron adapted version of the shot as of mid October. As 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. Election Day is tomorrow, but already more than forty million Americans have cast early ballots.

Republicans are optimistic about winning enough seats to retake troll of both the House and the Senate, while Democrats insist they are poised for a better night than many expect. The COP twenty seven u N Climate talks began in Egypt, with a deal to discuss how rich countries can help pay for the damage is 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 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 Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. How Michael Barr and this

is Bloomberg. Nathan, all right, Michael, thank you for coming up to six twenty on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We want to take a closer focus now on those COP twenty seven climate tucks underway in Egypt. Bloomberg use of Kamal L. Dean is part of our team of reporters and correspondence covering the discussions from Charmel, Shake and useus with US Live now, Good morning, use of thanks for being here.

As Michael mentioned, it did begin with a deal to discuss reparations for climate damage. But this is just a deal on actually talking about it. That's that's kind of what we're looking at the moment right correct. So basically you've got over one d heads of state here to one of the the delegations, forty five thousand ecodited people. I've found a bit of shade in a midsummer day here

in Charmer shaky. It's far harder than it would usually be, and yes we did get a bit of a diplomatic breakthrough. It's been added to the agenda the loss and damage component, which is the reparations, but it isn't because it takes out the liability component, but assures a level of coordination and integration between developed and developing countries around moving forward

with with the Climate agenda. So it was a positive note to start, but people here on the ground tell me there's a long way to go until we can call the summit a success. Well, what kind of progress are we looking for from this summit? Use if it seems like every year when the COP gathering gets under way, the benchmarks for success seemed to get lowered and lowered with each passing year. I think he hit the nail on the head, and that's why the Egyptian hosts here

are labeling this the implementation COP. So he had the COP of lofty ambitions, the COP twenty six Glasgow, and now they just want to, you know, make a little

bit of tangible progress. And that's why it was so important that we didn't get that addition to the agenda in terms of what else they can do well, in many ways, live up to existing promises like the Copenhagen Pledge, which is a hundred billion dollars annually, need to help with adaptation and mitigation from developed countries to developing countries, and just firming up the framework for discussions. You have

no idea how complex this process is. Once you sit in one of these hauled I mean you're going into the far corners of U N bureaucracy. That's kind of the layers that need to be considered, and the amount of sort of diplomatic uh, I don't know, maneuvering that needs to be done. And all this is coming, of course, at the backdrop of the war in Ukraine and the potential for an energy crunch coming this winter and a spike in demand with global commodities potentially being disrupted dramatically

by the war unfolding. How is that affecting what we get from these talks? It affected very much. I mean they're not beaning around the bush here. So you know, the Ukraine war, You've got the geopolitical file up between the US and China. All these things are weighing on the relative optimism that you would normally have at an event like this. And even here in Egypt, were Egyptians are feeling climate change, there's a question of financing it.

So you're already dealing with double digit inflation, your local currency is down fifty over the last year. Who's going to pay for the move to cleaner energy? Right if you're trying to make ends meet? Not the end of the months we're talking about the end of the day. So those are some of the core issues that are going to be discussed with the delegations from over two hundred people of the course of two weeks, so a lot to cut through. We'll see how far we get

with all of this. And I know a lot of European leaders are there now. We're expecting President Biden to arrive after the mid term elections have come and gone. What are the expectations once President Biden comes in when we could potentially see a shift in the balance of power in Washington and the corresponding changes to the kinds of commitments that potentially the US could make at a

summit like this. You've only got about a minute left here, use I mean, the French President of Manuel Macros said that the US and China need to pay their share to help poor nations deal with climate change. They need the U S and China to step up as let's

just tin accounts of emissions. I think there's more hope that the US can take a leadership role, and with the mid terms out of the way, it allows this administration in Washington to really focus on what has been one of its top priorities since it came into office, and that is something that is giving people here underground a lot of confidence that much more can be done

with US leadership. Thanks for your time use of looking forward to your coverage over the next couple of weeks here from Charmel Shake Bloomberg's use of Kamal L Dean with us this morning, as the Copy seven summit has just gotten underway, and we will have full coverage for you throughout the next couple of weeks here as the summit unfolds. Looking ahead to the market open on Wall Street this morning, futures are pointing a little bit higher.

SMP futures are up nineteen points right now Down futures up a hundred fifty seven, and Nasdaq futures are higher by fifty seven points ten. Your Treasury is up three thirty seconds the old four point one percent. Look at the commodities market and I'm ex screwed down two tenths percent. Ninety two dollars forty three cents a barrel. This is Bloomberg Bloomberg eleventh three oh weather a brief shower this morning,

otherwise clearing, breezy and mild today. Highs in the mid seventies will be back in the mid fifties for highs on Election Day tomorrow and Wednesday as well. Right now sixty eight in Central Park, broadcasting live from the Bloomberg Interactive Broker's studio in New York, Bloomberg Living Free to Washington, d C, Bloomberg N one to Boston Bloomberg one six one to San Francisco Bloomberg, and I'm sixty to the country Sirius XM chto one nine and around the globe

the Bloomberg Business apt in Bloomberg Radio dot com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning of Nathan Hagar and I'm Karen Moscow and we are just about three hours away from the open of US trading. Time to the five things you need to notice start your day. Brought to you by i b KR Investment Advisors switched to Interactive Brokers for lowest cost global trading and turn key custody solutions, no ticket charges and no conflicts of your interests at ibkr dot com

slash r i A First. Investors are keeping a close eye on key economic data. The October Consumer Price indexes out on Thursday, and University of Michigan Consumers Sentiment Index out Friday. Paiden and Regal Chief US economist Jeffrey Cleveland says jobs data from Friday suggests the Feds still in the thick of its inflation battle. The wage growth data has slowed maybe a little bit a point four a 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 paid in regals. Jeffrey Cleveland said the Fed wants to see less job growth because the labor market is out of balance. Well meantime,

caring the job turmoil continues with big tech. The Wall Street Journal reports Meta platforms will lay off thousands, potentially as early as Wednesday. Twitter is now asking dozens of employees who were laid off to come back. Bloomberg Tech editor Vlad Savo says Twitter's sweeping moves likely do not reflect broader trends in big TEG. Months ago, Twitter's prior leadership decided to come back on spending on office space in molded to preserve jobs. What we've seen in with

Twitter cannot be extended to the prototech industry. It is a very unique situation and there's a lot of unpredictability because of Evan Muskie the home Bloomberg's Lads. Savo says more changes are coming to Twitter. The company will add verification check marks for members of its monthly subscription service after tomorrow's mid terms to avoid chaos. Well it's taking with tech Nathan. Shares of Apple are down one percent in early trading after the company announced it expects to

produce less iPhone fourteen models than originally planned. In Age of Karen, You and Climate, discussions are focused on how rich countries can pay for damages caused by global warming. Netherlands Prime Minister Mark Rota spoke with Bloomberg's Francy Lakwa about moving forward on climate issues. We already are at this moment committing the one hunt of billion to help the yes to the world also and also the global

South who gets on boards with affecting climate change. Dutch Prime Minister Mark Roche is one of several world leaders at top twenty seven. U S President Joe Biden appears later this week and that's the five things that you need to notice start your day. Brought to you by Interactive Brokers and Futures this morning are on the rise.

SNP Future is up twenty three points now features of a hundred eighty five and Nasdack futures of seventy straight ahead, your latest local headlines plus the check of sports and this is Bloomberg. Thanksperience six three on Wall Street, sixty degrees in Central Park. Still got that crash on the northbound Hutchbags at eleven and Scarsdale, and Michael Barr has more on what's going on in New York and around

the world. Good Morning Mine called Good morning Nathan. Both President Joe Biden and his predecessor Donald Trump are hoping to provide their party's late boosts on the last full day of campaigning before midterm elections that could reshape a balance of power in Washington. Biden is holding a rally this evening in Maryland as Democrats I retaking its governors ship. Yesterday at the president campaign for New York Governor Kathy

hokel at a rally in Yonkers. Biden is hoping to give the incumbent a last minute boost against Republican challenger Lee Selden. Biden criticized Selden for voting with House Republicans against the American Rescue Plan that included money for police. Governor opponent had a choice, could kick cops on the job or cave to his Republican leaders. I'll give you one guess what he did. He came. Meanwhile, Congressman Zelden, at a rally just outside of Rochester, promised if he's

elected governor, he's going to crack down on crime. This is about making sure and we don't have district attorneys who, by policy, are just letting violent criminals went for m Former President Trump is sent to stage his own event in Ohio, where his hand picked on at candidate Jade Events will be at his side. Yesterday, Trump urged Florida voters to support Republican candidates in the mid terms this Tuesday.

You must go out and vote Republican in this giant rid wave, Uncle sham, giant rid wave that they're all talking about. The former president spoke at a vlley in Miami with Florida Senators Marco Rubio and Rick Scott. The CDC issued a warning of a surge and respiratory viruses from covid flu and RSV, especially among children, that threatens to overwhelm hospitals this fall and winter. The Powerball lottery drawing is tonight. The jackpot is expected to be one

point nine billion dollars. Some people already, yeah, one point nine billion dollars. I'm sorry, some people are already thinking when on Monday, quit working on Tuesday. I feel very confident about that this would be the winning Tinkot tank gun. Put it in the bank. I'm gonna save it. I don't know what I'm gonna start win. I think that's amazing,

and I hope someone really deserving. The last time someone had the jackpot winning ticket was August three, Global News twenty four hours a day on airand on Bloomberg Quick Take Power by more than twenty seven hundred journalists antalists more than a hundred twenty countries. I'm Michael barn this is Bloomberg, nath. Wouldn't that be the pre election surprise? Thank you, Michael? Six thirty six on Wall Street, time for the Bloomberg Sports Update brought by Try State Out.

He Here's John stet Show. Thanks Day. And the Jets had that four game win streak and then laid an egg and yet another loss to New England that led many to say, same old Jets. They're not saying that now. Not after a twenty seventeen upset of heavily favored Buffalo and MetLife. The Jet defense outstanding sat Josh Allen five times, intercepted him twice. Jets put together a fourth quarter drive eighty six yards in thirteen plays, eight straight on the ground.

The Jets ran it for a hundred and seventy four yards in the drive took over six minutes, ended with a field goal that games in the league they had once trailed by eleven. Their coaches Roberts all, 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 their Buffalo. Obviously they've they've

got championship aspirations. But um, but I don't think there's a guy in that locker room that I didn't think we can win. Let's go to their bye week six and three. They've won five of the last six and They'll come back from the bye with another game against New England. Kansas City. Last night beat Tennessee and overtime. The Chiefs tied the game of the late t d and two point conversion, both for Patrick Mahomes runs at the Garden. Rangers led to nothink. Detroit came back to

win three two and overtime. Then that's at two wins this weekend without the suspended Kyrie Irving, who now needs to fulfill six requirements laid down by the team before they will consider lifting his suspension. And Mets have several key players who are now free agents. Crossed one off the list Edwin Diaz, who struggled early in his met career but was tremendous this past season. He has now cashed in not quite one point nine billion, but he's

getting five years two million. Daz with averaged almost two strikeouts per any John Sports All right, John, thank you. The six thirty seven now on Wall Street. And besides the election and earnings, markets will be keeping a very close eye out for the data this week. Of course, a key piece of that comes out Thursday with the release of the October Consumer Price Index Bloomberg Global Economics and Policy correspondent Michael McKee joins us Now for a

bit of a preview of October inflation data. Mike, is this gonna be the print where we start to see the effects of four straight seventy five basis point increases start to have an effect on inflation. It could be You're gonna have to look closely. It's not gonna be a major change, And of course looking back is the only way we get to figure out if we were right or not. So it'll be a little while before we know if if we have peaked, But the forecasts are that that we are maybe an inch Uh asked

the peak of inflation. We'll see a rise in the month over month number because energy prices went up, but the core is expected to drop, and that will be the sign, and the Fed is looking for that. At least we've started in the right direction. It will be just one sign. Of course, a lot of market participants are starting to get into that debate of how much of the data the Fed will need to see before it can start to at least slow down on interest

rate hikes. Well, I think if you get UH this number, it comes in a little bit lower, and then the PC at the end of the month. Does we've got another inflation report by the just before the next FED meeting, and so at that point, I think the Fed is going to be able to say we can do fifty. Now the loss of this whole debate and is a fifty basis points used to be considered a really and now so stepping back to fifty is still a pretty strong move in monetary policy. So what are we looking

for in terms of the core? What's gonna be driving core inflation potentially lower? In this print, well, we are really watching services prices. Goods prices have started fall and we saw that in the I s M number this past week fell down to about six which is roughly, according to the I s M folks, compatible with one percent inflation. So it looks like supply chains have pretty much normalized and that's going to bring down goods prices. Services prices are the question, Um, they have had to

pay more to find people, they're still doing it. It seems there's still a lot of job openings in the service sector, and so do we see service prices come down or are they still paying up for workers. Now we're gonna have housing as an issue for a while because it takes a long time for that. You've heard this before to get into and out of the CPI. But we are starting to see prices come down a little. Yeah,

the fed like football game of inches. Thanks Mike, good having you on with a Bloomberg Global Economics and Policy correspondent Michael McKee ahead of October consumer prices coming out Thursday morning, eight thirty. Wall Street Time futures pointed higher this morning ahead of the market open. This is Bloomberg and the Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the Audi 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 Take. He's a Bloomberg Business Flash and I'm Karen Moscow. This update brought to you by s CIA said managers don't get results at are off the charts when they're solution

tore off the shelf. Learn how scis operating platform can turn infrastructure into a competitive advantage. At sci C dot com, slash tech future is on the rise. This morning. We go to the First Word Breaking news desk for today's morning call, and here's Bill Maloney. Bill, good morning, and good morning, Karen. That's right. US futures are on the green right now, with DEWN futures up a hundred ninety points, SIMES game twenty four one, NASA futures rise by sixty nine.

The US ten year old at four point one four percent, Gold is down five, oil is in the red, and bitcoin is down by one point seven percent. Hong Kong rose two point seven percent overnight, while European markets are trading mostly in the green this morning, and back in the US. On the economic front, at three o'clock, Consumer Credit and other news people familiar so that Apple expects to produce at least three million fewer iPhones than originally anticipated.

Morgan Stanley's Wilson says US mid terms could fuel an equity rally, and the Wall Street Journey report that Facebook may start job cuts affecting thousands of employees. On Wednesday, Wrapping things up, n o V was race to equally over at Wells Fargo, live from the first Baging News discon. Bill Maloney, care, all right, Gil, thank you to here live breaking news. Over your Bloomberg type squawk on your termin I'll ascue you a wuk and 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 ballot. The election could shift the balance of power in Congress. North Korea's military says it's 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 included nuclear capable weapons. The North's military said today it's missile tests were reaction to last week's massive air force drills between the US and South Korea. In the NFL, the Jets beat the Bills, The Patriots won, the Commander has 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 Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael barn This is Bloomberg. The following commentary is from Bloomberg Opinion. Our Republicans write about America's crime wave. Let's look at the data. I'm Justin Fox, a columnist for Bloomberg Opinion. Crime has become a big issue in the

U S. Midterm elections. That's understandable given that the national homicide rate rose thirty five percent over the past two years, leaving at the highest dispense since the nineteen nineties. Murders do appear to be down slightly this year. An incidents of other crimes did not spike in the same way during the pandemic. Property crime actually fell, but his life returns to more or less normal. This seems to be changing.

Robbery was up thirty percent as of mid year in seventy major U. S cities in New York City, where murder is down fourteen percent. So far this year, major crimes overall are up thirty percent and at the highest level since two thousand six. That's sure seems like a crime wave. I'm justin Fox. For more opinion, please go to Bloomberg dot com slash opinion or O P I

n go on the Bloomberg terminal. These has been Bloomberg Opinion and Bloomberg Opinion commentaries can be heard every weekday at this time and terminal customers can read more at O P I n go. It is six fifty on Wall Street and we turned to news and science and technology now at the Bloomberg n j I T Stammer report, bronze U buy New Jersey Institute of Technology as one of the nation's leading polytechnic universities at a top military friendly school, and j I T supports America's service members

and their families. Learn more at n j I T dot E d U slash veterans. Now Here's this making news and science, technology, engineering and math. You and climate talks in Egypt have a gun with a deal to discuss how rich countries can help pay for the damage caused by global warming Elsewhere, the breakthrough will allow diplomats to officially debate loss and damage during the two week

COP twenty seven meetings for the first time. Industrialized nations have repeatedly blocked efforts to addess to the agenda, despite demands from developing countries. China's daily COVID cases jump to the highest and more than six months outbreaks flared across the nation, and how the officials declare the nation will stick with its strict virus controls and better catch the Moon's disappearing act tomorrow. There won't be another like it

for three years. The total lunar eclipse will be villas visible throughout North America on the pre dawn hours, the farther west the better, and across Asia, Australia and the rest of the Pacific after sunset. As an extra treat URINEUS will be visible just a fingers width above the Moon, resembling a bright star, and totality will at last nearly one and a half hours as Earth passes directly between the Moon and Sun, and as the Bloomberg and j I t Stem report name in Okay, Karen, thank you.

We are live from the Bloomberg Interactive Brokers studios where it's six fifty two on Wall Street Time. Now to check what's going on in DC or the top story is the final campaign sprint to tomorrow's midterm election. The latest Washington Post ABC News poll has Republicans in position to take the House, but Democrat Corey Booker tells ABC's This Week he sees a path for his party to keep the Senate. And even though our economy is tough, people think about it and say, wait a minute, this

is the party trying to protect unions. This is the party that made sure we did things to lower prescription drug costs and lower healthcare costs, and House the majority with James Clyburn tells Fox News Sunday, democracy itself is on the ballot tomorrow. There the nine they're trying to delete. They're trying to NUI five votes vote against that. Republican Senator Rick Scott was asked on NBC's Meat the Press

whether he'd accept the results of Senate elections. Absolutely, but what we're also gonna do is do everything we can to make sure everybody they're free and fair. And if anybody you do, if there's any shenanigans, we're ready to make sure we make sure we support our Canadas to make sure that these elections are fair and every ballot is counted. The right way, and on CBS is Face the Nation. Chris Krebs, former head of the agency that ensured the integrity of the election, said, there are already

reports of foreign actors trying to undermine tomorrow's vote. They recognize that political discourse is very divisive here in the US, and they have more opportunities, uh probably than ever before, to continue to undermine confidence, to create chaos, which is really their primary objective. Face the Nation, Meet the Press, Fox News Sunday and this week can all be heard every Sunday right here on Bloomberg Radio and Bloomberg Government reporter Emily Wilkins joins me now in this final full

day before tomorrow's election day. So Emily, what are you focused on ahead of the mid term vote? So many different things, Nathan, and and we should point out that at this point there have been over forty million mail and ballots and early votes that have already been placed, so this thing is well underway. And also tomorrow might not be the big finale. We might not know by the end of tomorrow who controls the House, who controls the Senate. But I think there's a really good point

there that, yes, the main question is the Senate. The House is likely to go to Republicans. We could see anywhere from them picking up a dozen seats to five seats, um. All of that would give them the power to control the House next year. But I think the Senate is very much still in play. You've got to keep an eye on Pennsylvania. You gotta keep an eye in Nevada. You gotta keep an eye on Georgia, which might go to a runoff situation. Again, we might again be waiting

to know, UM. So I think tomorrow is gonna gonna start off a little bit of waiting for process to see exactly how good of a night Republicans have. UM. At this point, there is a lot of expectation, uh, that that the winds will be in their favor and that they are going to control at least one chamber of Congress next year. Among those states that could be competitive tomorrow night, Emily, I didn't hear you mentioned the one that President Biden was in last night. That's New

York State. Got a pretty surprisingly competitive governor's race happening there. It does it as a competitive governor's race. It has a number of competitive House races, UM, And we might not it might take a while for them to count up their votes. But yes, Biden was there that week

yesterday campaigning with a governor Kathy Hoco. Um. You know, she had for a while a pretty considerable lead on her Republican nominee, Congressman Lee Selden, but that's really tightened in past weeks as Zelden has continually hit her on crime rates, crime going up. And so last night Biden used that exact same playbook. He came up, he campaigned

with hocol and he criticized Selden's record on crime. He criticized him for not supporting the assault weapons bans, for not standing up to the n r A. And I think it goes to show just how much of an important issue crime has become with this election. We've seen it in New York, we've seen it in places like Oregon. Really shape a couple of these congressional races in areas where people are concerned. It's a lot of suburban areas where folks are concerned about all these high crime rates

they've heard in the city. Um, and they're worried that they might be coming to where folks live outside the city. Only about a minute left here, Emily. But if we don't get firm results after tomorrow night, are you looking out for the possibility of doubts being raised about the

integrity of the election? Got about a minute left here. Well, we know that there are folks who to continue to deny the results of the legitimate election, and there's a chance that we could see more folks doing that tomorrow at a number of state level and federal level races. UM. I think those to a certain extent, there's a lot

of expectation setting right. And so now we've been through an election where we've had mail and ballots, where you've seen how things can shift between what happens with the mail and what happens with the vote, what happens with the vote, what happens with the mail, and and every

state is a little bit different. There are certain states, um, like North Carolina and Florida where mail and bells tend to get counted for so Democrats are gonna look like they have a good night and then we're gonna see Republicans catch up in there are states where that's absolutely the opposite. And so hopefully everyone's learned a little bit more after the elections. But there are absolutely folks out there, I think who are are ready to question the validity

of the election should they not win. Thanks Emily. As always, they're gonna be very busy tomorrow night and potentially for the days to come following this midterm that's Bloomberg Government reporter Emily Wilkins with us from the nation's capital. You can read more on Bloomberg dot com or on the Bloomberg terminal. Listen to Bloomberg Radio in Washington Bloomberg and one oh five point seven FM HD two that will

be the hub of our mid term election coverage. Bloomberg Surveillance is next with Tom Keene, Jonathan Farrell, and Lisa Brambowitz for Karen Moscow. I'm Nathan Hager. This is Bloomberg