Bloomberg Daybreak: October 11, 2022 - Hour 1 (Radio)

attack on a man on a Bronx Bux. Plus a feisty debate between the two Senate candidates in Ohio. I'm Michael barr More, Ah, I'm John Stash Howard sports that Chiefs Rallied the Top the Raiders. The Yankees begin their playoff series with Cleveland and the Topeny Night for the Rangers.

That's all s traded ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine Team and around the World Old on Bloomberg radio dot com and via the Bloomberg Business app. Good morning, I'm Nathan Hager and I'm Karen Moscow and US dot Index futures are lower this morning.

We're coming up to five o one on Wall Street and we check the markets every fifteen minutes throughout the trading day on Bloomberg. U S and P future is down thirty four points now futures down two eight and NASTAG futures down. In ten year treasury down fifteen thirty seconds, you know, three point nine four percent, and they yield on the two year four point three two percent, and nine x screwed oil is down two point seven percent

Nathan Karen. Today's dropping futures follows four straight losing sessions on Wall Street this morning. Yields on two year treasuries are trading at the highest level since two thousand seven, and ten yere yields are flirting with four percent thirty years searched to their highest since. Jordan Cohn is chief investment officer at a c M Funds. A lot of these areas of the market and the fixed income market are really getting older soldier that come down quite a bit.

Yields are much higher than we've seen in years, and so I think as soon as the market gets a spense that inflation is peaking um and and tenure yield start to stabilize more, you know, I think there could be a lot of good buying opportunities. But for us now, we're not going to put the part before the horse. Jordan Conn of a c M fund says, the mood remains fragile. I had a Thursday's inflation data. Well. As for equities, Nathan, perhaps the hardest sector hit in the

recent sell off has been chip stocks. In fact, more than two hundred forty billion dollars in market value has been wiped out since the White House impost curbs on China's access to semiconductor technology. They get more from Bloomberg's Charlie Pellett. The industry sold off globally after fresh US curbs on China's access to American technology added to a disappointing start to the earning season, stoking concern that the

industry's downturn is far from over. The Philadelphia Stock Exchange Semiconductor Index fell three and a half percent, closing at its lowest level since No member of the index has dropped nearly ten percent over the past three trading days and is now down more than forty so far this year. In New York, Charlie Pellette Bloomberg, Debrie. Al Right, Charlie, thank you, and the chip sell off continued overnight, leading

stocks lower in Asia. Let's get more on that from Bloomberg's Juliette Sally in Singapore, Good morning, Juliet, Good morning, Nathan and Karen. Some of the biggest losses were in ship related equities in Japan, South Korea, and Taiwan, where traders returned from holidays to join the global sell off

in semiconductor shares. Taiwan's tie X traded at November twenty twenty lows, while t s MC shares fell as much as eight and a half percent, the most on record to July twenty twenty lows began traded within sight of the original level that spurred Japanese authorities to defend the currency in September, and they want slid as warri mounts at Beijing will uphold its COVID zero policy well after the Chinese Communist Party Congress this month. In Singapore, Juliette

Sally Bloomberg Daybreak, All right, Juliette, thank you well. In Europe this morning, the Bank of England has been forced to spend its emergency measures as in response to chaos and the bond market. And let's go live to London and get the latest from Bloomberg's U and Pass. Good morning, you w Good morning karenen Nathan. It's the second time this week the UK Central Bank has moved to calm

the bond market. This morning, the banking that expanded the scope of its guilt purchases to include inflation linked debt in an effort to avert what it called a fire sale. The intervention comes after a severe set off on Monday that saw UK inflation yields surging by the most on record in London, Immune part Sploomberg daybreak, are you and thanks? The risk of a global recession is now rising thanks to higher rates. That's according to the head of the

International Monetary Fund and World Bank President David Malpass. There's the risk and the real danger of a world recession next year. The advanced economies are are slowing in Europe. The debt levels for the developing countries are getting more and more burdensome. The rise in interest rates puts added weight on it, and inflation is still a major problem for for everyone, but especially for the poor. Those comments from World Bank President David Malpass are being echoed by

JP Morgan CEO Jamie Diamond. He says here serious headwinds are likely to push the U S and global economies into recession by the middle of next year. Meantime, Nathan, the FED keeps banging the drum for higher rates. Still, Vice chair Lyle Brainerd say lays out a case for caution as the Central Bank works to curb inflation in

light of elevated global economic and financial uncertainty. Moving forward deliberately and in a data dependent manner will enable us to learn how economic activity, employment, and inflation are adjusting to the cumulative tightening in order to inform our assessment of the path of the policy rate. Fed Vice Chair Lyle Brainerd made the comments yesterday at a meeting of

the National Association for Business Economics in Chicago. Despite some coution Karen, it's too early for a FED policy pivot. That's according to strategistic Goldman Sachs, who say the economic outlook is not bad enough yet and eight markets remain two volatile economist predict the FED is on track to deliver its fourth straight seventy five basis point hike at next month's meeting. Now, let's get the latest on the

war in Ukraine. Nathan Russia has launched even more strikes in the country, just a day after the most intense barrages since the early days of the invasion. President Biden will speak with a group of seven leaders this morning. He's fledging to impose more costs on the Kremlin and to keep providing support to Kiev. John Herbs is a former US Ambassador to Ukraine and now Senior director of the Atlantic Council's Eurasia Center. Who's objective is not to

take a bit of territory Ukraine's east. Is objective today is to take political control of Ukraine. Is objective tomorrow once he has Ukraine in his pocket, is to go after other states, including Allen NATO Allas. So he is coming for our NATO Allas, we are about to defend with American troops. Farmer. Ambassador to Ukraine John Herbs spoke with our Washington correspondent Joe Matthew on Bloomberg's sound on Catch the program weekdays at five pm eastern on Bloomberg right.

SMP futures right now are down thirty two points. Staff futures down two or to thirty eight. Nastack futures are lower by nine points. The tenure treasury is down fifteen thirty seconds. The yield three point nine four nimex crew trading at eighty eight dollar sixty four cents of barrel. Local headlines and the check of sports up next. This is Bloomberg. He's out five oh seven on Wall Street work fifty four degrees in Central Park. Got an issue

in Neptune, New Jersey. Route thirty five is closed both ways by Lake Avenue. Tell you why shortly. First, Michael bars here with what else is going on in New York and around the world. The morning Michael, Good morning Nathan. A woman has been arrested in the fatal stabbing of a man during an argument aboard and mt A bus in the Bronx. Lamont Barkley, who was fifty five, is the eighth person to be killed in the transit system

this year. The NMPDS has Barkley got into a verbal dispute with a man and a woman believed to be boyfriend and girlfriend on a bus Sunday night. Authorities say the argument escalated and the man stab Barkley multiple times in the stomach. Detectives yesterday said forty two year old Ebony Jackson was arrested in connection to the stabbing. The man is still on the loose. It was a feisty

debate in Ohio last night between two Senate candidates. Democratic Congressman Tim Ryan and Republican j D. Vans were on Ohio's Next Our Media. President Trump endorsed Vans. He talks about wanting to support a stronger border. He talks about wanting to be bipartisan and get things done. Tim, You've been in Congress for twenty years, and the border problem has got worse and worse and worse. Bryan on his opponent, JD. Vans raised money for the legal defense Fund of the insurrectionists.

This is the kind of extremism, j D, that we wholly reject. You have video post. Don't even try to The yat the race could determine which party controls the U. S. Senate. A pro Russia hacker group that has targeted several government websites at second responsibility for coordinated attacks targeting dozens of US airports, including LaGuardia. John On hold Quist, head of intelligence analysis at cybersecurity firm Mandian, says kill net has

been targeting mainly US government websites and all the systems globally. Previously, they carried out attacks all over Europe. It carried attacks in Japan. Even so, it's sort of a global problem, but you know, a lot of it is a lot of it is tied to the war in Ukraine. Hold Quist told ABC no flights were disrupted as a result

of the attacks. The Supreme Court will hear arguments today over at California animal cruelty law that could raise the cost of bacon and other pork products nationwide and involves the California law that says porks sold in the state needs to become from pigs treated humanely. A majority of unionized railroad workers voted to reject a tentative labor agreement

broken in park last month by President Joe Biden. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg Nathan, Thanks Michael, going up to five ten on Wall Street time for the Bloomberg Sports Uptake and morney John stanshow Morning the eighth and the Mets post season is over. Now the Yankees post season

begins Game one with Cleveland ten night. It'll be Garrett cole Ver says the Guardians cal Quandrill eighteen years ago. His father, Paul was a Yankee reliever who served up the David Ortiz game winning omer in Game four the Alcs that began that Red Sox come back from pretting nothing down. Aaron Boone met the media yesterday was asked if the crowd will be like it was when Aaron Judge was Jason Roger Magankee Stadium in the playoffs. It's

gonna be pretty raucous. I would imagine tomorrow night, a lot of energy in the building, a lot of anticipation, certainly when Aaron's up because he's Aaron Judge and and what he can do. But no, I don't think it will be necessarily similar to you know, when he was

sixty sixty one and stuff like that. I think it's gonna be the playoffs, the three other division series, all just that intro Division, Phillies and Brains in Atlanta, Mariners and Astros in Houston thirty nine year old justin Verland. It will start for the Astros coming off a brilliant regular season, Padres and Dodgers and l A. The Dodgers won the season series with San Diego fifteen to four. The Mets offseason underway, a lot of decisions to be made.

Mets could have as many as ten free agents and the list will include Jacob de Graham, Edwin Diaz and Brandon Nimmo and the last other Rangers. They were losing to Tampa Bay and the Stanley Cup Conference Final Rangers in lightning tonight at the Garden, the beginning to do season wild Monday Night at the Calf, Week five, Raider has led the chief seventeen nothing. Casey came back, Patrick Mahomes and Travis hel Kelsey Cook hooked up for four touchdowns.

Raiders scored with the game time TV with four and half minutes left, they went for two to get it. Chiefs held on to win thirty ton stash were Bloomberg Sports, Nathan john thanks SMP Futures Down Down twenty nine points, South Futures Down Tuner fifteen nest At futures are lowered by eighty two points to ten. Your treasuries down fourteen thirty seconds, yield three point nine four. This is Bloomberg Bloomberg Day Break, brought to you by the New York

Community Trust. Your name will live on as a champion of the causes you care about for years to come through a charitable request to the New York Community Trust. Learn more at Philanthropists dot n YC. Markets headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business At and at Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm Carrot Moscow and stocks are falling, pressured by rising treasury yields and signs

that company earnings are set to disappoint. Engage of the dollar climbing to the highest this month. The mood is fragile ahead of Thursday's US inflation data, with a case for another seventy five basis point rate high likely to be strong if the reading comes in higher than forecast. And we check the markets every fifteen minutes throughout the trading day on Bloomberg. SNP futures down twenty eight points down, futures down two hundred five nasdack futures down eighty five.

The decks in Germany's down eight tens of a percent. Ten year treasury down fourteen thirty seconds, you know, three point nine four percent they yield on the two year

four point three one percent. NIMEX screwed oil is down two point six percent on two dollars thirty seven cents at eighty eight dollars seventy five cents of barrel comes golled down two tens per cent, or two dollars ninety cents at sixteen seventy two thirty announced the euro point nine seven one five against the dollar British found one point one zero seven zero and the yen one forty five point six six. And look at a bitcoin, it's down eight tens of uppercent at nineteen thousand dollars. And

that's a bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael, good morning, Good morning, Karen, President Biden and g Sevenly, there's will hold a virtual meeting to discuss how to support Ukraine and hold Russian President Putin accountable. For Russia's aggression. This comes as Russia recently carried out missile strying across Ukraine,

hitting major cities like Kiv. The U s Supreme Court could hear arguments in a high stakes case today involving pork. The nation's twenty billion dollar pork industry is asking the justices to strike down California's Proposition twelve that would ban the sale of all pork that comes from pigs raised in spaces that aren't large enough for them to turn around in In football, the Chiefs beat the Raiders thirty twenty nine. In baseball, Game one of the a LDS

begins tonight. For the Yankees, they play the Guardians. The NHL season begins tonight. The Rangers take on the Lightning. Global News twenty four hours a day on airrand on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barron. This is Bloomberg, Nathan. Thanks Michael. It's five nineteen on

Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and let's get more now on what's happening in Ukraine following Russia's barage on Kiva and other cities, and as the G seven gets set to meet joining us now, Bloomberg News Executive editor for International Government Rosalind mathieson, so get us up to speed on what's been happening since that barrage. I understand a lot of the attention now as far as developments on the ground is back

in the so called annexed territories in the south and east. Well, that's right. So after yesterday's missile attacks which really struck across a wide swath of Ukraine from the south to the east, Dikiev also across to Levov in the west, sending the message that nowhere really in Ukraine remains totally safe at this point from Russia's reach. This morning we had fresh strikes on Zaparitzia, which is of course the area of annexed Ukraine that houses the key nuclear power plant.

Has been a lot of focus on that plant since the war broke out, of course, the safety of the plant's inability to keep operating um in difficult circumstances and so on. So really we're seeing a string of attacks around that area in recent weeks. But certainly the message that we're getting from Russia as this war takes an even darker turn, is that Vladimir Putin is not going

to give up. He's not he's not willing to seed the ground even as his troops struggle to retain territory inside Russia, and if anything, he's escalating via these annexations, mobilizing his troops and now of course stepping up his missile attacks, that he's certainly not ready to back down, and wanted to get a little deeper into where this

could go from here. Given the pressure that Vladimir putinize, I understand his feeling from hardliners within his own country, and the continued morale issues that we've been witnessing on the part of Russian troops in Ukraine. Well, that's right.

You can see a real chorus coming from Russia. In recent weeks, military bloggers, military hardliners and others criticizing this war quite publicly saying that they frustrated at the way it's going, at the level of organization, obviously the shambolic command structure has come to to play in Russia, and really sort of disappointed that Russia hasn't made better ground, and that's put a lot of pressure of Vladimir Putin to show progress of some description and certainly not to

be seen to be backing down. So the missile strikes yesterday during drawing some praise from those quarters inside Russia, and that really reinforces the fact again that it's very difficult to find an off ramp at this point, because any sort of exit does require the Russian president to some extent to be able to say that he got something for all of this and claims some kind of victory, however small that might be. In equally, Ukraine's not going

to seed territory in order to make that happen. So we're really at a at a difficult point in this conflict, and that puts attention, of course on the US and the G seven leaders. After President Biden just a few days ago had said that the US was looking for that off ramp for Vladimir Putin. Now the G seven is getting ready to meet in just a couple hours. Here,

what are you looking for their? Well, what we're expecting a continued state monts obviously of unity for Ukraine, of support for Ukraine, pledging to continue to send Ukraine financially, which is really helping the government to continue to operate,

but also to provide them weapons. What they are cautious about is providing the sorts of ever more powerful weapons that Ukraine says on a daily basis that really now needs to press its advantage, and that sort of NATO's standard weaponry, tanks, fighter jets um and the very long

range missile systems that they're asking for. And there's been a lot of caution about sending any of that in because, of course, the fear is that that would be seen as a direct provocation of the Russian president, perhaps NATO really putting itself into this confrontation, and in a climate where the Russian president is dangling the potential use of nuclear weapons is at a place you want to go to.

So it's unlikely to be tangible statements in terms of more advanced weapons, but certainly expressions of continued support for Ukraine in its fight against Russia, and will of course be monitoring that G seven meeting and passing along any developments as they come in. Bloomberg's Rosalind Matheson, our executive editor for International Government, keeping us apprised of all that's happening in Ukraine and the global response ros as always

great to have you with us. Right looking ahead to the market open this morning, we're poised for another session of losses potentially, with SMP futures right now down twenty eight points down, futures down two eight. Nasdaq futures are

also lowered, down eighty three points uh. The selling continues in the bond market as well, with the tenure Treasury down fourteen thirty seconds, with the yield at three point nine three percent, yield on the two year at four point three one p Nimex cruds plunging down two and a half percent or two dollars twenty six cents at eighty eight dollars eighty five cents of barrel, and the euro right now trading at point nine seven one zero

against the dollar. Stay with us, you're listening to Bloomberg Daybreak Bloomberg eleventh three oh weather sunny today with a high near seventy degrees apache fog possible tonight, but it's gonna be mostly sunny again tomorrow with a high near

seventy chance for showers Thursday. Right now fifty four in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg on a six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM Channel one nine team and around the blood the Bloomberg business in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five

thirty on Wall Street. Good morning. I'm Nathan Hager and I'm kerin Moscow 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 what this show our well. US futures are lower yet again after four straight and losing sessions. Earnings and inflation data will be key this week. Some analysts expect a significant earnings drop, but that may not come to pass if

inflation usays. That's according to Bloomberg Intelligence Chief equity strategist Gina Martin Adams, the reality of the earning stream is an Inflation has been a big pain point for earnings. Revenues have been growing, but margins have been contracting amid the rising input cost pressure. Even though companies have been able to pass on some price increases, so we might be somewhat surprised by the degree to which to drop an inflation can actually soothe some of those margin pressures.

Gina Martin Adams at Bloomberg Intelligence says she expects quote earnings confusion to continue into the next quarter. Chip stocks have been hit particularly hard in this recent sell off, Karen. More than two ordered forty billion dollars in global market values been wiped away after the White House and Post curbs on China's access to semiconductor technology. Meantime, Nathan warnings

of a global down here and are growing louder. The heads of the International Monetary Fund and World Bank weren't of rising risks of a global recession, and JP Morgan CEO Jamie Diamond is joining in, says saying serious headwinds could push the U S and global economies into recession by the middle of next year. The Fed still raising rates, Karen, but Vice chair Laile Brainerd is echoing some of Diamond's concerns,

noting global tightening could spill back into the US. We're starting to see the effect on some sectors, but it's going to take some time for that cumulative tightening to transmit throughout the economy and for inflation to come down. FED Vice chair law Brainerd made those comments yesterday at a meeting of the National Association for Business Economics in Chicago.

Let me turned out to the war in Ukraine, Nathan, where Russia is ramping up attacks and now G seven leaders are holding an emergency meeting to discuss continue support to Ukraine. Bloomberg's and Baxter has the story. The White House, in a statement says the other aim will be to hold Russian President of Vladimir Putin accountable for Russia's aggression. Ukraine's President of Vladimir's alone, Ski will participate at the

top of the meeting. The group has already openly condemned the Russian missile attacks, but we'll discuss whether more military support will be forthcoming, as well as any potential economic sanctions on Vladimir Putin and Russia. In San Francisco, I'm at Baxter Bloomberg daybreak, all right, and thank you, and futures this morning or lower SNP futures down thirty two points down, futures down two one and NASDACK futures down and a tenure Treasury down sixteen thirty seconds. You have

three point nine four percent. Try to head your latest local headlines plus a check of sports. This is Bloomberg. Thanks on Wall Street, fifty three degrees in Central Park westbound four forties closed near the outer bridge crossing on Staten Island, and Michael Barr's got more on what's going on in New York and around the world. Michael, thank

you very much. Nathan. With less than a month to go until the mid term elections, Democratic Representative Tim Ryan squared off with Trump backed Republican candidate Jade Events in a FEISTI Senate debate last night. Ryan, speaking on next Our Media about Vance, Donald Trump said that jd Vance all you do is kiss my host to get my support. Vance responded, You're gonna take lecturers on dignity and self respect from a guy caught on video kissing up the

Chuck Schumer. Both candidates in Ohio are pulling close in a race that could determine which party controls the U. S. Senate. A woman was arrested yesterday, and Sunday's fatal stabbing of a man during an argument aboard an m T A bus and the Bronx detectives say forty two year old Amoni Jackson was arrested in connection to the stabbing. Police A Jackson's apparent boyfriend allegedly stabbed Lamont Barkley, who was

fifty five. It is the eighth person to be killed in the transit system this year, and the third within ten days. The man is still on the loose. At least fourteen airports around the US, including LaGuardia, reported their internal communications and advertising systems were hit by hackers believed to be Russian based. The group known as killed Net claim responsibility for the attack. John Holdquist had of intelligence analysis that cybersecurity firm Mendiant says it was a denial

of service attack on the airport websites. It's essentially superficial. It doesn't necessarily mean that any back end resources are being affected, or dad has been lost or anything exactument operations that have been affected in any way. John hold Quist with Mandy and told a d C no flights were affected. James Brennan, the San Antonio officer that shot an unarmed teenager who was eating inside of his car

and the McDonald's sparking lot, has been fired. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan hiiight, Michael, thanks on Wall Street time for the Bloomberg Sports Something.

Here's j Stash all right, Nathan. Yankees in Cleveland meeting in the postseason for the six times often nineties seven Yankees have won three of the five, included two games sweep in a wild card series. Two years ago. Yanks went five and one with the Guardians of the regular season.

But Cleveland just won a wild card series with Tampa Bay where they allowed only one run in twenty four And as the Guardians start, Cal Quantrill Tonight Stadium, Aaron Boone starts his eights a scary cole And because he came here and signed a huge contract, and you know the long term and the ace of this staff, the New York Yankee staff, you know, nothing will ever be necessarily good enough. Um, but I think he's had a very strong year. Cal said a New Yankee Record to

s breakouts of the season with Big Yankee. Concerned with Cleveland's Jose Ramirez, he had a hundred and twenty six RBIs. Only Aaron Judge had more in the American League. Had the Mets won one more game they had won the division, they'd be hosting the Phillies today. They went fourteen and five against them. Instead, the Phillies are in Atlanta. The Films got hot after they fired Joe Girardi promoted Rob Thompson. They've now given Thompson the job full time day football

in Kansas City, Las Vegas led seventeen to nothing. Patrick Mahomes brought the Chiefs back four touchdown passes, all the Travis Kelsey. The Chiefs won thirty to twenty nine. Casey has four in one Vegas one and four, all four losses by fewer than seven points. When the Giants were looking for a coach in nineteen, they were interested in Matt Rowley. Instead was hired by Carolina. The Panthers just fired him. They dropped the puck on a new NHL

season tonight, first game at the Guard and Rangers in Tampa. There, John Stay, actually Humbert Sports maybe can't wait? Thank you? John seven on Wall Street time for the Tri State Business Report with Bloomberg, Scott Carr, New York based software maker Alchemies raised twenty one million dollars in Series eight funding,

bringing its total finances to twenty six million. The maker of software that helps business automate data workflows, says they'll use the funds to expand hiring and product development and go to markets rategies to Family owned New Jersey based businesses have come together to create a one stop full

service interior exterior cleaning maintenance business for commercial customers. Ja Don Cleaning and award winning full service commercial cleaning business has announced the acquisition of Pico Services Property Maintenance, which

handles landscaping and property management. The Arizona College of Nursing's plans to enter the Connecticut market could be in trouble in the face of allegations against the school regarding a lack of transparency, combined with pushback from some local colleges in the Arizona College had plans to open a campus in East Hartford. That's the Bloomberg Try State Business Report. I'm Scott Carr. Thank you Scott. It's five thirty eight on Wall Street. Bloomberg Radio is 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 hundred affiliate radio stations around the world. I'm Steve Poda Scott ten ten Wins in New York. We're talking about clothing maker Alpha the Street is opening its first brick and mortar store up pop up in Soho. I'm calin head Girl bloom

Big Deby Digital Medio in London. We've been reporting on some signs of calm in the UK market after another intervention from the Bank of England in guilds using extraordinary language on Ginas Servetti in for w c c O in Minneapolis. I'm talking about the Mayo Clinic getting a one million dollar gift. Um Corney Donahoan Cafe by and Omaha Crop Giant car Gil sees developing nations cutting their demand for green I'm Scott Carr on w t A

M in Cleveland. I'm reporting on the hope that a post season run by the Guardians translates into better attendance at Progressive Field Andree And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Climate changes adding to the danger of severe storms, as

Hurricane Ian in Florida recently made clear. Yet America's card approach to flood insurance discourages responsible choices about what gets built and where. When the hybrid public and private insurance market meets current disaster relief policy, the result is mispriced risk, misallocated investment, and amounting toll of suffering and cost. In essence, the government is subsidizing people to live places that put

them in danger. It's time for a rethink. After climate related disasters strike, getting back to normal should no longer be the overriding goal. Help the victims to be sure, but take actions so that next time there will be fewer of them. This 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 Open and listen

for Bloomberg Opinion editorials every weekday. At this time terminal. Customers can read more at O P I n GO. Future is following once again. SMP futures down thirty three points down, futures down two to thirty eight, NASDAK futures lower by ninety nine points. We'll talk about this market next with Linda Distle, senior equity strategist at Federated Hermes Bloomberg. Eleven three oh weather. Sunshine today, maybe some patchee fog overnight.

We'll get up to near seventy degrees, mostly sunny, high near seventy Tomorrow showers, maybe a thundershower Thursday, with highs once again near seventy degrees. Right now fifty three in Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com. A Bloomberg Business Allan at Bloomberg Quick Tape, He's a Bloomberg Business Flash and

I'm Karen Moscow. And stocks are falling, pressured by rising treasury yields and signs that company earnings are set to diste point e gauge of the dollar climbing to the highest this month. Who checked the markets every fifteen minutes throughout the trading day on Bloomberg futures are lower, SMP futures down thirty six points, now futures down two hundred

fifty six and NASTAG futures down one hundred six. The decks in Germany's down one point three percent, the ten year treasury down nineteen thirty seconds three point nine six percent, and they yield in the two year four point three three percent. Nine X Screwed oil is down two point four percent, down two dollars sixteen cents at eighty eight dollars ninety nine cents of barrel comes. Gold is down a third percent, or five dollars fifty cents at sixteen

sixty nine fifty announced. The euro point nine six nine nine against the dollar. British found one point one is zero four one and they en one forty five point seven four. And look at a bitcoin, it is down one percent, had nineteen thousand dollars. That's of Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. US officials are condemning the barrage of Russian missiles that struck

several cities across Ukraine. Yes to one of Moscow's largest attacks in months. President Biden will meet virtually later today with members of the G seven, senior administration officials, says. The group of world leaders are expected to discuss ways to aid Ukraine and continue punishing Russia. Today marks four weeks until the critical November mid term elections, which will dessign which party controls Congress. US Senate candidates in Ohio

held their first debate last night. In football, the Chiefs meet the Raiders thirty nine. In baseball, Game one of the a l Ds begins to night. For the Yankees, they play the Guardians. The NHL season begins tonight. The Arrangers take on the Lightning global news twenty four hours a day on a or and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts in more than a hundred twenty countries. I'm Michael Barr, and

this is Bloomberg. Nathan all right, Michael, thank you. It's five forty nine on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak, and we are joined now by Linda This all senior equity strategist that federated Herme's as we watch yet another sell off on Wall Street. Linda, good morning. We may be poised for five straight losing sessions for the SMP. Is this market pricing in a recession? Yes? Hi, good morning, Athan, Uh,

great to talk to you today. And is it? Is it pricing in a recession? Really not much of a recession if at all here in the United States. We look at the earnings risk premium, it's generally correlated to earnings growth. You had to think that with all the concerns are going on out there, that investors would require more of a premium to buy stocks. But that really

hasn't moved that much in recent weeks. So the stock market, you know, it's it's going and fits and starts, to be sure, and it's still reasonably stronger than what we had federated. Hermi's think it will have to end up doing before we can, you know, can really find some buying bottom, some good some good buying bottom. Here. Where are you seeing signs of strength? What are you looking

for in what particular sectors? Well, you know, if you look at the sectors of the stock market and relative pees to the stock market in general over the last thirty years, still the energy path remained the least expensive of them all. Of course, that's where the best earnings growth is coming. And if you strip out the strong earnings growth from the energy sector, the rest of the marketplace is really pretty tepid here in terms of kind

of maybe looking at a mild economic recession. So to us, that's our favorite one, But in general, those those more defensive value oriented sectors, the ones that give you the good dividend yields. That whole dividend space was ignored for five years, so it really looks inexpensive to still, even if it's gotten punished a bit in the month of September. As this rotation keeps running around back and forth, you know where should I whould I sell? M? Should I buy? Yeah?

I guess some of the rotation, Yeah, I guess some of that rotation is being driven, of course by the speculation about what the Fed's gonna do, whether we could see a pivot toward at least slower interest rate hikes, and we continue to get that drumbeat from Federal Reserve officials that rates have to stay higher for longer. What's

your outlook on where rates go from here? Yes? And and actually mas and that's kind of what we've been saying for months, that Federated Hervey's is higher for longer. And I think that the marketplaces has to slowly, slowly come to realize that that, you know, whatever that terminal rate is, if it's four and a half percent, Uh, that's that could be a victory because it might have to go five percent and you know, usually you needed five percent FED funds to really start to hit employment.

Employment in this country is just too strong. And we talk about rate, but we're not talking enough probably about quantitative tightening, which I guess actually is what they're talking about over in the United Kingdom just today, you know, and uh what that means for liquidity and maybe the quantitative tightening maybe they should stop. We might come to that point here in the U. S as well, moment where the FED needs to stop their tightening campaign. Um

get as it really starts to hit this economy hard. Yeah. I wanted to ask you whether there's a risk that the FED goes too far on interest rate hikes. What do you think it would take for the FED to stop with the interest rate increases? Uh? Yeah, I think that the Fed, well, the FED is really focused on the unemployment situation in general, not so worried about the

markets unless there's a financial accident. And I think that's what the really the developed markets are on the globe we're going to be watching now for the next number of months. Is is the weakness that might that might show up somewhere? Is it a two strong dollar? Is its central banks tightening too much in liquidity? Is not there? That whole liquidity idea is really the big concern out there. So uh So, you know, FED funds need to keep

going up and quantity of trying need to happen. But if at a moment it looks like there's a financial accident on its way in any particular country, they'll probably stop on a dime now and reverse that tightening. Well, what's it gonna mean for earnings? We've got the kickoff of earning season coming up later this week. If we continue with this tighter FED cycle and a stronger dollar,

what's that going to mean for the earnings outlook? That's that's really the very interesting kind of the perverse situation that we find ourselves in now. It's not it's not just the US, but the US as we as we look for earning season is extremely highly employed, you know are we have record job levers at this moment with very low unemployment rate in this country, as we do around the world. So we all complain about the costs for whatever we want to buy going up and then

we pay for it. So up until this last quarter, corporate America has enjoyed really continued strong earnings growth because the margins held up. Margins is starting to slip, and that is true, so the earnest growth will start to come down and maybe go negative here, but maybe not nearly as negative as the rest of the world because we're just too strong. I saw a statement just the other day. So the economy is weirdly resilient, but we've

got going on here. It's weird, but it's resilient. So there's a very decent chance that earnings could beat expectations I see going into this third quarter season. Seven percent decline in earnings is the expectation normally that's for and usually the market rebounds when you you have an over an over reduction. There. Weird but resilient. We'll leave it there. Thanks so much Linda for this. Linda distal with us this morning senior equity strategist at Federated Hermes, Karen Alli, Nathan,

thank you. It is five or fifty five on Wall Street Time Now for our daily of Bloomberg Law Brief, exploring legal issues in the news. And today we're looking at Dreamers remaining in limbo after a federal Appeals Corps dealt another blow to their legal status. DACA, or Deferred Action for Childhood Arrivals, is an Obama era program that's preventing a deportation the hundreds of thousands of immigrants brought

into the US as children, known as dreamers. Now, the Fifth Circuit Court of Appeals has ruled that the data program contradicts federal immigration law. For more on the issue, Bloomberry S Judent Grosso speaks to immigration law expertly on Fresco, a partner at Holland and night Lee on the Fifth Circuit decision covers a lot of legal territory. Tell us about the broad parameters of it. Well. The Fifth Circuit decision is very interesting because it mails a lot of

different concepts solids the one decision. But basically what it says is that data is illegal, but we're not gonna end doctor today go back District Court and tell us whether we're right about the new rule that was issued by the federal government while the original doctor case was pending changes something so that it makes the program converted

from being illegal to legal. Does the new rule do anything different or does it fail for the same two reasons, which are that it contributes the statute and that it regulates in a place where they're is that clear regulatory authority? And if it does, will strike it then and then it will be up to the Supreme Court to determine what happens. Sax. It sounds like sending it back to the lower court is not a good omen for the

dreamers because it's a legal question. The Fifth Circuit is sending back to the Texas judge to decide, and this is a judge who already ruled that data was unconstitutional. Correct. What this means is that they're sending back basically the same legal questions they just answered in the memo case and basically asking the District court does this new regulations the rule do anything different than the memos? And if it does something different than the memo, tell us that

maybe then the data we CIPI in the win. But if it doesn't, then the dotor recipient bloom And the truth of the matter is the whole point of the regulation was just to eliminate the notice and common argument. It wasn't to change anything else. And so I would say with thirty that the District Court and the Fifth

Circuit are going to invalidate the rule. And as Leon Fresco, a partner at Holland and Night speaking with Bloomberg jun Grosso catch where that interview plus analysis of the latest legal news by subscribing to the Looom 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 our top stories are straight ahead and this is Bloomberg