Bloomberg Daybreak: October 12, 2022 - Hour 1 (Radio)

and Intel plans thousands of job cuts. New Jersey says New York City's congestion pricing charts threatened, Sport Authority revenue plus NASA successfully moves an asteroid off its over. I'm Michael barn Moore Ahead. I'm John Stash Howard Sports Game one to the Yankees day beat Cleveland at the state of the End of the Rangers one there sees it opener.

That's all stred ahead on Bloomberg Daybreak. On Bloomberg he levened three on New York Bloomberg ninety nine one, Washington d C Bloomberg one oh six one, Boston Bloomberg nine sixties and Francisco Sirius XM one nine team and around the World Old on Bloomberg Radio Dot com and via the Bloomberg Business App. And good morning. I'm Tar at Moscow. I'm Nathan Hagar. Bloomberg Daybreak is brought to you by se I. Imagine your asset management firms operational infrastructure as

a competitive advantage. Let s e I show you how at se I C dot com, slash, I M S and U S Dock Index futures are higher this morning. It's five o one on Wall Street and we checked the markets every fifteen minutes throughout the trading day. On Bloomberg, s and P Future is up seventeen points down, futures of a hundred ten nasdack Future is up sixty eight

and the ten year treasury of five thirty seconds. You have three point nine two per cent at yield on the two years at four point to nine percent, and I'm ex screwed. Oil is down two tenths of a percent. Nathan. All right, Karen, we'll have more on the markets in a minute. But first, President Biden is weighing in on the economy. As investors, c e O S and economists

talk about a possible recession, so is the President. I don't think there will be your recession if it is it will be a very procession, that is will move down slightly. Well, look, think about what's happened. We have done more with in a better position than any other major country in the world. In an interview with CNN s Jake Tapper, the President also voiced anger with Saudi

Arabia and oil production cuts from OPEC. Plus he's accusing the Kingdom of aligning itself with Russia and vows to engage with lawmakers to punish ri Odd, there's going to be some consequences for what they've done with Russia. What kind of consequences, Venenda says, suspend all arms sales? Is

that something you'd consider. I'm not going to get into what i'd considering what I'm having mind, but there will be There will be consequences, the President invite and suggests those consequences likely will not come until after next month's mid term elections. Well, tough talk on inflation continues from the fat Nathan. The latest waging in is Cleveland Fed President Loretta Master, and she tells us the bank is definitely not done raising rates. The real issue is we

need to do more. We have not seen inflation moved back down um and we need to see that because leaving inflation where it is, if it continues, there's a higher chance that it does become embedded in the economy. Cleveland Fed, President of the Reddemester, made the comments in an interview with Bloomberg's caathling Hey. Stay tuned for more of that conversation coming up shortly on Bloomberg Daybreak. The

FEDS still has its critics out there. Karen including Muhammad al Arian, the Alliance chief economic advisor and Bloomberg opinion columnists, says aggressive tightening by the Central Bank will not only damage the U s economy, but also the rest of the world. This is going to be a reminder a little bit of October without an an eight, when people gather in Washington and realize we have a global problem

and it needs global global solution. Muhammad al Aria made those comments to Jonathan Farow on Bloomberg Surveillance Ketch, the program weekdays at seven am Wall Street Time on Bloomberg Radio and Television. Coming up to day, Nathan, we get the first is several key economic readings this week. Let's get the details from Bloomberg Economics. Corresponded Michael McKee. The world is watching the US Federal Reserve raising rates to fight inflation has an impact on markets everywhere, so this

week's inflation reports are key for markets. Wednesday, the U S reports on producer prices. The bad News Economist forecast factory gate prices rose last month. Also Wednesday, the FED releases the minutes of its September twenty one meeting. Investors will parse those for clues to how fast the central Bank thinks inflation will come down, which may influence how high rates will go and for how long. Michael McKee

Bloomberg Daybreak, All right, Mike, thanks staring. Inflation and higher interest rates have seen yields rise, and stocks are trading at their lowest levels in almost two years. Still, Morgan Stanley, chief US equity strategist Mike Wilson says it could be too early to call a bottom. I think the bomb market is probably there. Uh and but unfortunately, kind of like stocks, the bomb market used to be told by the Fed that they're done right, And that's just the

dance we're in right now. It's the hardest part of the cycle to trade. We think we know we're going in equities. We think deals are probably flows to topping We've got to go to the earnings revision still, which is why you can't see that that starts about Stanley. Chief US secuity strategist Mike Wilson says inventory, labor costs and other latent expenses are wreaking havoc on company cash

flow well in Europe. This morning, Nathan questions continue to swirl over whether the Bank of England will and its emergency bond buying program on Friday, and we go live to Lineing and get the latest with Bloomberg's un parts. Good morning, you Win, Good morning Karen and Nathan. It has been a rocky few hours of watches of UK assets this morning, but by giving them now can firm it will end its emergency bond buying program this Friday.

That was after an earlier Financial Times report that the bank had told lenders in private there could be an extension. UK GDP meanwhile, unexpectedly shrinking in August for the second time in three months, the north point three percent drop in output driven by a sharp decline in manufacturing, raising the possibility of the country is now in a recession. In London, I'm you and part spin Bog day break.

Thanks you and back here in the U s A. Big companies looking at a big red action in head count. It looks like Intel could be slashing jobs in an effort to cut costs. We get more from Bloomberg's Doug Krisner. We're told the job cuts will likely number in the thousands and will be announced as early as next month. Some divisions, including sales and marketing, could see cuts, affecting about twenty percent of staff. As of July, Intel had

a hundred thirteen thousand, seven hundred employees. The company is facing a steep decline in demand for PC processors. Its main businesses struggled to win back market share lost to rivals like Advanced micro Devices. In July, Intel said two sales would be about eleven billion dollars lower than previously forecast. In New York, I'm Doug Prisner, Bloomberg Daybreak, All right, Doug, thank you. And in Europe this morning, Shares a credit

sueeze or down three percent. Sources say that Justice Department is investigating whether the Swiss Lander continue to help US clients hide assets from authorities. The Bank, the Bank pain A. The bank paid rather a multibillion dollar fee over a similar issue. Eight years ago had pledge to tackle the issue. Al Right. Futures right now moving higher. Karin SMP futures are up twenty two points, Stown futures up and Nastack futures are higher by eighty one points. The tenure treasury

is up five thirty seconds. The yield on the benchmark three point nine. Local headlines and a check of sports up next. This is Bloomberg at south five oh seven on Wall Street ward fifty eight degrees in Central Park. Got an accident on the southbound New Jersey Turnpike truck lanes spikes at third team. Details coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Good morning, Michael, Good morning, Nathan.

New Jersey Governor Phil Murphy has put up another potential hurt older Block Manhattan traffic congestion pricing with an inquiry into the potential revenue hit to the Port Authority of New York and New Jersey. Murphy says the plan would cut bridge and tunnel toll collections. Murphy wrote the comment to Port Authority Executive Director Richard Cotton, and in October

eleventh letter obtained by Blueberg News. He says any reduction in the Port Authority capital plan because of congestion pricing should not come at the expense of any New Jersey projects. The letter is Murphy's latest attempt to quash the congestion pricing plan to raise about a billion dollars annually for the m t A or at least the land On the campaign trail, Senate Minority Leader Mitch McConnell says the party will stick with Herschel Walker as their GOP candidate

for Senate in Georgia. Walker told ABC he denies a woman's claims that the former NFL star once urged her to have an abortion. I know nothing about an abortion. I knew us a lie and I said it was a lie, and I just move on. Walker's campaign is rocked by allegations that he reimbursed an ex girlfriend for an abortion. In two thousand nine, New York City Mayor Eric Adams signed legislation barring concealed guns both legal and illegal,

from Times Square. Mayor Eric Adams says it's essential for the city to safeguard the rights of the tourists and visits who could be coming through the area looking for save fund on their trips to the city. We are projected to receive fifties six million tourists UH in this city. Many of them come through Times Square has become a signature of this city, and we want to make sure

that this saved. The decision comes following the summer's Supreme Court decision or to overturn the state's law requiring a license to carry concealed weapons in public places. NASA says the dark spacecraft that crashed into a small harmless asteroid two weeks ago has succeeded in shifting the space rocks orbit. NASA Administrator Bill Nelson. Now the team is confirmed that the spacecraft's impact altered demorphous orbit around Didimos by thirty

two minutes. NASA's Bill Nelson. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven hundred journalists analysts in more than a hundred twenty countries. I'm Michael Barr, and this is bloom Burg. Neither all right, Michael, Thank you, Almost five ten on Wall Street time for the Bloomberg Sports Update. Good morning, John Sten Sharn, Morning eighth in the Yankees signed Garrett Cole to win big games in October didn't

happen last year. He got roughed up in a one game playoff in Boston. But Cole pitched like an ace last night at the Stadium in six and a third, allowed just one run, struck at eighth. The bullpen of question mark heading to the postseason. It did its job, getting the last eight out. Yankees took Game one from Cleveland four to one, home runs for Harrison Bader his first ever in Prince Ritz and then Anthony Rizzo along to run shot. Game two scheduled for tomorrow night, although

rain is in the fourthcast. High drama on the other American League series. Seattle was coming off a win in Toronto where the Mariners came back from an eight to one defensit. This time they had the lead they got to justin Verlander. In Houston, they led Ford and nothing later seven to three. Seattle was one out from victory the O one and Alberis built it hold run over the Vision series. Baby Amy to call used seven. Dodgers

beat the Padres in l A five to three. The Phillies and the Surprise took Game one in Atlanta seven to six. Opendy night for the Rangers. Little payback on Tampa Bay, who house to them four months ago in the playoffs at to go to Meeking's manage sports shorthanded, then on the power play Blue Shirts wants me to walk. Giants are back from London, but their punter is not. Jamie Gallant is a native of Scotland, came to live in the US while in high school. He has stuck

in England with a visa issue. Giants expect him back in time to punt on Sunday against Baldwin. John Stash of Bloomberg Sports All right, John, thank USMP futures are now at plenty two points down, futures up a hundred fifty one, nestack futures up eighty six points ten, Your treasuries up four thirty seconds, the yield three point nine to per cent. Cleveland fed President low Read Amester next on the path ahead for the Central Bank. This is

Bloomberg Bloomberg eleven three or weather. Morning sun will be followed by increasing clouds this afternoon and a high year seventy degrees rain Tomorrow breezy as well with the high in year seventy back in the sunshine on Friday. Right now eight in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business and at Bloomberg Quick Take. This is a Bloomberg Business flash and I'm Karen Moscow. And futures this

morning are higher. The pound is trimming games after the Bank of England confirmed it will end its emergency bond buying program on Friday. And we checked the markets every fifteen minutes throughout the trading day on Bloomberg Right now, SMP futures are up twenty seven points down, futures of a D eighty and nasday features up. The decks in Germany is at three tenths of a percent, the cap in Paris up about half percent, and the foot See

one hundred up a third of up percent. The n K to twenty five in Japan little change today with the Hank Sing in Hong Kong fell about eight tenths of uppercent. Can your treasury up six thirty seconds, you'll three point nine two percent. The yield on the two

year four point to eight percent. NIMEX screwed oil is up tenth of a percent or eleven cents at eighty nine dollars forty seven cents of barrel comes goal down about six tenths of upper cent or nine dollars forty cents at sixteen seventy six seventy announce the euro point nine seven against the dollar, the British found one point one zero to eight and the end one forty six point four zero. And looking at a bitcoin, it's up about three quarters of a percent and nineteen thousand, one

hundred sixty dollars today. We do have a reading on inflation to lookout for the Producer Price Index thirty Wall Street Time. Then at two is the minutes from the FEDS the latest meeting. 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 Joe Biden voiced his fury with Audi Arabia over OPEC oil production cuts Tuesday, accusing the kingdom of allying itself with Russia and vowing to engage with US lawmakers clamoring to punish Riad. Biden, speaking to CNN, says there's going to be some consequences for what they've done with Russia. The Supreme Court will not consider restricting abortion further after its June ruling that overturned Roe v. Wade, at least for now.

The conservative leaning Court decline yesterday to hear a case they would have granted constitutional rights to embryos and fetuses. In baseball, the Yankees one game one of their ads against the Guardians for one. In hockey, the Rangers won their season opener. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenty seven d journalists and analysts in more than one hundred twenty countries. How Michael Barr And this is

Bloomberg NACOLN. Thanks Michael. It's almost five twenty on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Chatter from the Fed continues to suggest the central Bank will continue viking rates aggressively. Cleveland Fed President Loretta Mester says more work needs to be done to slow inflation. It's an indication she thinks interest rates need to be in restrictive territory. Mester sat down for an

interview with Bloomberg's Kathleen Hayes. They also discussed shrinking the FEDS massive balance sheet. Let's take a list of to that conversation. Now, you haven't made up your mind yet about fifty verse seventy five. Whereas a lot of economists and market participants are sure that the strong labor market not cooling down means seventy five. You also said that you can't let inflation remain so high, you need to bring it down quickly. So why would you even doubt

the seventy five basis point move that seems to consistent. Now, I just want to make sure that we have all the data before I go into that meeting and hear what my colleagues are staying around the table. I think

the real issue is we need to do more. We have not seen inflation move back down um, and we need to see that because leaving inflation where it is, if it continues, there's a higher chance that it does become embedded in the economy and affecting pricing decisions of firms and also getting into the psyche of households and then has long term negative connotations for the economy. So again this is a question. We know that it's time to continue on and persevere and bringing the funds right up.

We know that we're going to have to keep it there for a time until we see inflation beginning to come back down, because we really want to make sure it's on the sustainable downward paths of two. So if you remember the dot plot in the median path from the last sep in September, we're very much aligned in terms of where we think policy needs to get today. Okay, Well,

in fact, after three d basis points of rate hikes. Um, you know, it seems that the terminal rate want I ask you, does it look like maybe it's going to end up having to be higher than you thought? Uh? You have any confidence now? And even knowing what the terminal it's going to be, people many people have talked about something as high as five percent. Well, we have

to wait until we see how the economy evolves. This is the assessment process that we're going to be going through, you know the end of this year and into next year, is we want to basically get inflation on this downward path. Right. Labor markets continue to be very strong. We have seen some moderation there, We have seen some moderation on the product side of the economy, and it really is now

we're going to calibrate going forward. But right now the funds rate is just approaching a neutral of funds rate, and we really need to get it above neutral for a time if we want to put inflation on the doward path. And we do so again, we're you know, we put out the dot pots, which give our best

estimate at the moment of what's appropriate policy. But we're going to be doing this assessment of how fast is deman moderating, how quickly is you know, supply maybe picking up and our price pressure is coming down, and that will be the job as we go forward in this

challenging time. Well, you know, the message from the Fed seems to be all the comments lately that the idea is to move quickly, you know front we of the rate hikes, uh, you know, get to four and a half to four and three quarters and then see how

that's affecting inflation. But to clarify, does this mean that once you get to that point when you think you're at neutral, when it's four and a half to four and three quarters, that you're going to pause even with the funds rate well below the rate of inflation, because that's where it's likely going to be right, Well, I think we're going to see inflation come down next year. So when I'm thinking about, you know, how far above a neutral rate do we have to go, and I

do think we're going to have to be in restricted territory. Right. Remember, as inflation comes down, right, we're becoming more restrictive. So again, this is the assessment we have to do. So the I think the appropriate path is we continue to raise rates a bit more, so we get it up to that level where we're positive in terms of the real funds rate based on expectant inflation over the next year.

Then we waited assess data coming in, but not only the backward looking data right in the LAG data, but also the information we're getting from the street in terms of main street right, real consumers, real households, real businesses telling us how they're thinking about the economy. And that was Cleveland FED President Laurentamester speaking with Bloomberg's Kathleen Hayes. And the FED gets more data to digest this week, starting today with inflation data that's actually today and tomorrow.

We get ratings on producer prices today than the key data on consumer prices Thursday, then the week wraps up with retail sales and the University of Michigan Sentiment Index. Those both come out on Friday. Looking ahead to the market open this morning, futures are moving higher. We have SMP futures up twenty nine points, staff futures up and

NASDAC futures are higher by a hundred nine points. The tenure treasury is up six thirty seconds, the yield three point nine to p sent You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather. Morning sun will be followed by increasing afternoon clowns behind your seventy degrees rain and a breeze tomorrow with the high near seventy upper sixties

Friday with a mostly sunny sky fifty eight degrees. Right now, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E loving freed to Washington, d C, Bloomberg N one to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country, Sirius XM H one nine team and around the globe the Bloomberg Business in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five

thirty on Wall Straight. Good morning. I'm Nathan Hager and I'm Karen Moscow or just about four hours away from the open of US trading. Let's get you up to date of the news. You need to know what this our first up. President Biden weighs in on the economy and an interview with CNN. The President faced questions about a possible contraction and growth. I don't think there will be a recession. If it is, it will be a

very slight recession, that is, will move down slightly. President Biden said the US economy is resilient enough to write out any economic turbulence. He also says the American people do not need to prepare for a recession. We'll talk talk on inflation. Continues from the FED care and Cleveland. FED President Loretta Mester says the Central Bank is not done raising rates and that she sees no reason to

alter the central banks balance sheet runoff plan. I think we want to stick to that plan because the markets have understood the plan. They see it, they understand it. We did very well. I think broadcasts what we're planning to do that implement in it. Cleveland FED President Loretta Mester made the comments in an interview with Bloomberg's Kathleen Hayes. Catch the full conversation on the Bloomberg terminal and at Bloomberg dot com. Well, the FED still has its critics

out there. Nathan, including Muhammadhiarium, the Alliance chief economic visor and Bloomberg opinion columnists, says the feds aggressive tightening could lead to a global slowdown. Central banks and governments have to be very aware that we are getting closer situation with financial and stability is the tail that waxed the dog of the economy. And Muhammadhalaria and made the comments on Bloomberg Surveillance heard weekdays at seven am Eastern on

Bloomberg Radio and Television. We'll going up today, Karen. We get some key economic data this morning. The latest Producer Price Index comes out at eight thirty Wall Street time. We get minutes from the Fed at two PM. Stick with Bloomberg Radio and television for complete coverage maintime, Nathan, yields are rising in stocks are trading at their lowest levels in almost two years. Still, Morgan Stanley, chief US equity strategist Mike Wilson says it's too early to call

a bottom. I don't want to get two bolish here because people then won't construe my words and say, hey, you know, here's time to go. And that's now what we're saying. We're saying there's still you know, last couple of endings of this bear market could be quite painful, but you've got to be ready for when that price

gets through an attractive level. Marian Stanley, chief US equity strate it just Mike Wilson says, inventory, labor costs and other latent expenses are raking havoc on company cash flow, and in corporate news today, caring a big companies looking at a major head count reduction. Sources say Intel is planning thousands of job cuts to lower costs and cope with a sputtering personal computer market. Oh sorry, SMP futures right now are down thirty two points. Staff futures down.

Tune at eighteen and as that futures are lower by a hundred sixteen points ten, your treasuries up four thirty seconds. Heal three point nine straight at your latest local headlines in the check of sports, this is Sploomberg and Wall Street Word fifty eight degrees in Central Park. Still got some lingering road construction. We'll tell you about it shortly. First Michael Barr with what else is going on in New York and around the world. Michael, thank you very much.

Nathan New Jersey says traffic congestion pricing in Manhattan threatened Support Authority revenue. Jersey Governor Phil Murphy says any reduction in the Port Authority capital plan because of congestion pricing should not come at the expense of any new Jersey projects. Murphy's comments came and in October eleventh letter to Port Authority Executive Director Richard Cotton, obtained by Bloomberg News top Biden administration officials are voicing their fury with Saudi Arabia

over OPEC production cuts. Bloomberg's Aid Baxter reports the administration says there will be severe consequences. They are saying the administration is undertaking a sweeping evaluation of its relationship, including modifying agreements. State Department spokesman that Price, saying that cuts of benefit of Russia, but it certain certainly serves the shorter term interests of countries like Russia, a country that stands to gain at least in the near term from

elevated oil prices. The administration says it may ask Congress to get involved. In San Francisco. I'm at Baxter Bloomberg day Break, New York Mayor Eric Adams signed into law a new concealed carry measure. It means Times Square officially becomes a gun free zone, and we're going to make sure we created a vin i'm it with those who visit the city such as Times Square won't have to be paralyzed with the fear of knowing that someone is

carrying in a gun in this area. The legislation is based on a New York state law that is being challenged in court. NASA says the dark spacecraft that crashed into a small, harmless asteroid two weeks ago has succeeded in shifting the space rocks orbit. NASA Administrator Bill Nelson NASA successfully crashed a refrigerator sized spacecraft into the asteroid

de Morphus, seven million miles from Earth. NASA's Bill Nelson Global News twenty four hours a day on air and Bloomberg Quick Take, powered by more than seven d journalists analyist more than a hundred twenty countries. Michael Barren this is Bloomberg Na the Power of Science. Michael on Wall streets up with the Bloomberg Sports Update with John Stenshaw. All right, Nathan October baseball in the Bronx. Garrett Cole's first four Yankee postseason start were all on the road

at the Stadium. He got a big ovation when he came out seventh in and one out, one on and the Yankees leading Cleveland four to one. The most comfortable time to acknowledge the crowd. But I certainly felt it, um and appreciated it. And um, I thought they were in every pitch tonight, and um, what a wonderful experience to have him behind us Yanks one four to one home run for Harrison Bata and Anthony Rizzo. Key moment came third inning after a Stephen Kwan homer off of Cole.

The Guardians had the bases loaded one out, Cole got out of it. Yanks also got back to back defensive gems in the fourth, first and as Waldo Cabrera catch in left field and then on a hot smash the third baseman Josh Donaldson. Game two scheduled for Tomorrow night, weather permitting. Houston down seven three eighth innings came back stunned Seattle eight seven on a walk off three one homer with two outs on the bottom the night by your alba As the Dodgers beat San Diego five to three.

The Phillies hung on to win seven six in Atlanta. The Phil's Nearly Blue a seven one League maker's avantage at a big part of the Rangers playoff run last season, a run that was ended by Sampa Bay opening night at the Gardens, A Banta Dad scored shorthanded second period on the power play in the third. The Rangers beat the Lightning three to one. Nixon nets both with preseason games on the road tonight. The NFL says it will consider changes to the roughing the faster penalty, but not

until after the season. There were two very questionable calls in be five. Bloomberg Sports thanks seven on Wall Street time for the Tri State Business Report. Here's Bloomberg Scott Carr Sample will expanded Smart Labs facility in Piscataway, New Jersey, into a state of the art one forty thousand square foot laboratory and bio repository. The facility will be one

of the largest of its kind in the world. Constructions expected to be completed by early three The musical theater production company League Productions has just renewed its lease in New York's Hell's Kitchen. Under the terms of their twelve hundred square foot space and the ninth to have Film Center building will remain the company's home for the next

three years. A group of business leaders in Hartford, Connecticut, are putting together a working group to plan out future uses for an increasing amount of vacant office space in the city. Head of the Metro Hartford Alliance, David Griggs, says the first order of business will be to get the largest communities to agree it is a regional problem. One tactic might be to convinced employers of the need to return workers to centralized offices. That's the Bloomberg Tri

State Business Report. I'm Scott Carr. Thank you, Scott 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 podaskon K and X in Los Angeles. We're talking about workers on an Amazon warehouse in southern California filing you for work to hold

a union election. Um Courney Donahoan kat r h in Houston. Timond Back Energy is buying Firebird Energy as it looks to grow in the Permian Basin. I'm Genus Servetti and for KCBS in San Francisco. I'm talking about Intel planning major job cuts. I'm Kawain Heatkil on Bloomberg DAV Digital Radio in London. Sticking to Friday, the Bank of England confirms that it will wrap off its emergency guilt purchase at the end of this week. I'm Scott Carr on w d c H in Washington. I'm reporting on more

plans for more data centers in northern Virginia. And those are some of the stories. Are 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 List. Editorial was written by the Bloomberg Editorial Board. By early next year, the US government will likely run out of money to pay for COVID

nineteen vaccines tests and treatments. Although President Joe Biden has re list did more support from Congress, Republicans are in no mood to continue spending on the pandemic. Shifting more costs to the private sector makes sense, but some level of government funding is still necessary. Lawmakers should agree on a more limited approach that ensures the US is still

prepared to fight the next pandemic. That means, for example, that Congress should continue to authorize funding for basic research, the development of new vaccines and therapeutics, and manufacturing capacity in ways big and small. The US is moving on from COVID with a bit of foresight, the federal government should be able to manage this transition while keeping Americans safe.

This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or O P I n go on the Bloomberg terminal. This has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday. At this time, term Old customers can read more at O P I n go. Futures moving higher this morning, we have SMP futures up thirty one points down futures up tune or twelve Nastack futures

are higher by a hundred fifteen points. We'll talk about this market next with Joe Quinlan, chief market strategist at Meryl and Bank of America Private Bank. This is Bloomberg Bloomberg eleven three oh weather morning, sun, increasing clouds this afternoon with the high near seventy degrees, raining, a breeze tomorrow with the high near seventy once again upper sixties,

mostly sunny by Friday. Right now fifty eight in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Karen Moscow and this flash brought to you by s C. I said managers don't get a results at are off the charts when their solutions are off the shelf.

And how sci is operating platform can turn infrastructure into a competitive advantage at se i C dot com slash Heck futures this morning are higher, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg s and p future is up twenty eight points down, futures have a hundred eighty four and nowsdays futures have

one hundred five. The decks in Germany's up half percent, Pennier treasury up one thirty second deal three point nine four percent, and the yield on the two year four point to eight percent. Nimex screwed oil is up to tenths per center nineteen cents at eighty nine dollars fifty

one cents a barrel. Comics gold is down six tenths per cent or nine dollars seventy cents at sixteen seventy six thirty announced the euro point nine seven oh four against the dollar, British found one point one zero five five and the end one forty six point three nine and Bitcoin this morning up eight tens of percent at nineteen thousand, one hundred seventy dollars. As a Bloomberg business flash, now here's muchael Bar with more on what's going on

around the world. Muggel Paren thank you very much. Ukraine Southern Operational Command says its forces have recaptured five settlements in the Kirson region. The settlements are in one of the four regions recently illegally annexed by Russia. Meanwhile, Russia says it has detained five Russians and three citizens of Ukraine and our media over the last week bridge explosion, linking it to Crimeria Caremea anti government protests continuing cities

and towns and around for fourth week. Meanwhile, tens of thousands of Iranians living abroad have marched on the streets of Europe over the death of a woman who was arrested by the so called morality police about her job. In baseball, the Yankees one game one of their a lbs against the Guardians for one. In hockey, the Rangers

when their season opener against the Lightning three one. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven dred journalists and analysts more than a hundred twenty countries. Michael barn this is Bloomberg NA. Thanks Michael. It's five forty nine on Wall Street Life from the Bloomberg Interactive Brokers Studio.

This is Bloomberg Daybreak, and we're joined now by Joe Quinlan, head of c I O Market Strategy at Merylan Bank of America Private Bank as we watch a little bit of a lift in the futures contracts this morning, Joe, after five straight losing sessions. Is this the bottom or is this a dead cat? I'm more the latter, Nathan, Unfortunately, I would yet people know that. So Fed's got a lot of work to do. Global recession in front of us,

So more of a dead cap bounced than bottom. Although we've heard of, as you mentioned, yet more hawkish talk from the Federal Reserve. Although we did get or maybe I'm going too far here by saying that maybe we saw a little bit of a crack from Vice chair Lyle Brainer, you know, just saying there should be some caution when it comes to the FED going too far on interest rates. What's your view on where the Fed's

going right now? Well, that was interesting to hearing the comments from from the chair vice chair in the sense that maybe a little more dubblish. But I think I think the FED is feeling the heat when it comes the recession call. A lot of the recession is coming, maybe to fetch back off, but we're still all the opinion that we're doing seventy five basis points in November, and maybe we start to back off from but we're

not there yet. So the FEDS shifting. I wouldn't say it's a big shift, but the tone is starting to turn dubbish. Actually more of that into say the first quarter of next year. So you're not swayed then by some of the commentary we're hearing from President Biden saying that there's gonna be maybe a slight recession and that

people shouldn't prepare for a long recession. You don't think it's gonna be a shallow recession, you know, no, I I you know, for presidents to call recessions, well, you know his history does is not on their side, so to speak. If you look at history, um recession or not, the shallow or not. I don't think it will. I don't. We're not looking for a deep downtary. The consumer is still in decent shape relatively speaking. It's really the rest of the world that worries us. Worries me when comes

to the outlook. So you know, to us, US economy is the best in the best shape globally. Will we maybe we go in first, we come out first, will be the strongest. So we have a bias towards US assets when we look globally when we do asset allocation, what are you looking at in terms of US allocations? Really, you know, Nathan, hard assets, hard power, and so to speak. So we like energy, we like defense, minerals, metals. We're

really staying in that space. It's worked well and we think it's going to continue to work a little bit more defensive with healthcare utilities, were not ready kind of flip the switch and go to growth because we think that's a story for the second half of next year. But there's a lot of pain between now and then. Well, what would get you to that point where you could move away from a defensive posture and into growth. What are you looking for in the economy or the market

that would get you out of a Barris stance? First and foremost would be a consumer price index, just inflation in general, which way, how much is attacking or what components doesn't alleviate the FED raising race too far, too aggressively, And to say first quarter of next year, that's first and foremost. We need some type of it. Won't call it a pause, that's some kind of off ramp for Ukraine and Russia. And then we need China to reflate um you get get COVID zero, COVID policy, reflate reset.

So really, but the biggest issue is right here at home. It's the c p I and then really the employment, the labor market. How much slack is is being built in there that will take the foot off the pedal of the Fed. What's your expectation of what we're gonna get from this consumer price index? Do you think we've hit peak inflation? You know our economists, do you think we've hit peak inflation? But it remains elevated, elevated as well.

If we break below eight percent, maybe that's you know, don't pop the cork on the champagne, because it's we're still at seven present plus. So you know, the inflationary track has a long ways to go yet in terms of getting even remotely close to two percent UM. If we get there too fast, right down when we start seeing a real nicking a year of year decline, that means the economy is weakening more than people expect it.

So it's a very delicate balancing act. So in our last minute here, Joe, where do you see opportunity at this point in the tightening cycle and and how long do you expect this tightening cycle. Last well, I think the tightening cycles behind us. We reached the peak in the FED funds rate first quarter of next year. I think that's kind of like the base case maybe March April, so then we've got the balance of the year to

work through. We're still hard assets, hard power. It's still to me when you look globally OPEC plus if China does reflate, that's bullish for energy prices, commodities in general, agriculture. So we're still playing defense well into next year based

on this inflationary fight for the FED. So give it in shorter duration on a fixed income that's kind of where we're hiding out, holding cash, building some cash reserves, and being ready for the upturn because as I said, I do think the US leads the way coming out of this global recessions. You want to position in the US first, globally second. That's just gonna take some time, all right, Joe, thanks for this great having on with us this morning. Joe Quinlan, head of ce IO Market

Strategy at Merylan Bank of America Private Bank. Karen Nathan, it is five fifty four on Wall Street time now for our daily Bloomberg labbreef exploring legal issues in the news, and today we're looking at oral arguments. Yesterday, the Supreme Court justices were concerned about the implications of California's humane pork law and whether it would mean that other states could impose demands such as requiring that workers be paid a certain way to be allowed to opt out of

a union before products could be sold. The law approved through a balant initiative, bands of sale of pork in California unless pregnant pigs are allowed at least twenty four square feet of space enough to be able to stand up and turn around in their pens. For more, Bloomberg's Ding Grasses speaks to Harold Krant, a professor at the Chicago Kent College of Law. The pork producers say the law unlawfully regulates farmers in other eates, but those farmers

don't have to sell their pork in California. They don't. But California, because of its size, has of the market, and so states like New York, California, and Texas have a disproportionate impact upon commerce in the United States, and so producers have to listen to what those three states, in particular say that they have an outsized impact on

the market. That being said, it is clear that if California banned all the importation of pork because of perceived health reasons into the state of California, that would survive any kind of commerce laws challenge. So the interesting issue here, and I think one that we split the court, is if a ban is okay under the Constitution, why isn't the lesser step of a certification that the pigs are slaughtered under humane conditions. Why shouldn't that also be constitutional?

The gentices seemed concerned about the implications of the law, whether states could impose their oral values beyond their borders, and that sort of crossed ideological lines. For example, Justice Barrett said, so you could have California pass a law that said, we're not going to buy any pork from companies that don't require all their employees to be vaccinated, or from corporations that don't fund gender affirming surgery or that sort of thing. So it was sort of the

parade of horribles. What could happen? I think that's right, and I think this case gives rise to that kind of parade of horribles, as you suggest, far more so than any case the Court has seen which gives rise at least if I had to make a prediction that the Court is going to find some kind of narrow way to reverse the Ninth Circuit holding in favor of California and set it back for some additional proceedings, perhaps based upon the strength of the showing that each party

can make about, on the one hand, what kind of health benefits for California citizens may accur from this kind of humane treatment measures. On the other hand, what kind of economic impact disc California regulation they caused the pork producers and as Harold Crent, a professor at the Chicago Kent College of Law, speaking with the Bloomberg 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. Futures this morning are on the rise SMP futures of twenty eight points down. Futures have a hundred eighty three Nastack futures have one hundred three ten year Treasury up one thirty second, yield three point nine four per cent, and our top stories are straight ahead. This is Bloomberg