Bloomberg Daybreak: October 12, 2022 - Hour 2 (Radio)

Intel plans thousands of job cuts. New Jersey says New York City's congestion pricing charts threatens sport authority revenue plus NASA successfully moves and Asteroid off its over. I'm Michael barn More ahead, I'm John Stashower. Sports game one of the Yankees day beat Cleveland at the Stadium of the

Rangers one. There sees an open art. That's all s tradyhead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XAM one nine team and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business App. Good morning. I'm Karen Moscow,

I'm Nathan Hagar. Bloomberg Daybreak is brought to you by b n y Melon's Pershing Learned why 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. And Futures this morning are on the rise six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg SNP, Future is up twenty nine points down.

Future is up a hundred ninety four. Nasday features up one eight ten year Treasury up one thirty second deal three point nine four percent, and they yield on the two year at four point to nine percent. NIMEX screwed oil up three tenths of a percent. Nathan, Karen, We'll have more on markets in a minute, but first, President Biden's 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 the be a very slight recession, 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 Tapp for the President also voiced anger with Saudi Arabia and oil production cuts from OPEC.

Plus he accuses the Kingdom of allying itself with Russia and vows to engage with lawmakers to punish riyadd there's gonna 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. Biden suggests those consequences likely will not come until after next month's

midterm elections. Well top talking the inflation continues from the Fed and Nathan. The latest waying in is Cleveland FED President Loretta Master. She tells us a central bank is definitely not done raising rates. The real issue is we need to do more. We have not seen inflation move 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 Redemester, made the comments in an interview with The Bloomberg's Kathleen Hayes. Well, the Fed still has its critics out there. Karen, including Muhammad Larrian, the Alliance chief economic advisor and Bloomberg opinion columnists, says aggressive tightening by the Central Bank will not only damage the US economy,

it will also affect the rest of the world. This is going to be a reminder a little bit of October without in and eight, when people gather in Washington and realize we have a global problem and it needs global global solution. Muhammed Alarian made the comments to Jonathan Faroe on Bloomberg Surveillance Catch of program weekdays at seven am,

All Street Time on Bloomberg Radio and Television. Well, coming up today, Nathan, we get the first is several key economic readings this week, and we 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 economists 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, Mike thanks Soaring inflation and higher interest rates have seeing 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, but we got to go through the earnings revision still, which is why you can't say that that stocks at Bob's Morgan Stanley ch US sequity 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 shroll over whether the Bank of England will end its emergency bond buying program on Friday, and we go to London and get the latest with Bloomberg's hun pasts. Good morning you, Good morning Karen and Nathan. It has been a rocky few hours of watches of UK assets this morning. The Bank of England now confirm it will end its emergency bond buying program this Friday.

That was after an earlier Financial Time report that the bank had told lenders in private there could be an extension. UK GDP. Meanwhile, and expectedly 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 Boo day Break all arguing thanks back hearing in the U s A, big companies looking at a major reduction in head count. Looks like Intel could be slashing jobs in an effort to cut costs. More from Bloomberg's Doug Chris, 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 seek 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 Time, Doug Prisoner Bloomberg Daybreak, All right, don, thank you and euro up. This morning, Shares our credit Suite are lower. They're down about three and a half percent.

Sources say that Justice Department is investigating whether the Swiss lander continued to help US clients hide assets from authorities. To bank paid up multibillion dollar fee over a similar issue eight years ago, and had pledged to tackle the issue. We are watching earnings cross the Bloomberg This morning. PepsiCo reporting a third quarter core profit that beat analysts, s tomates and it sees its fiscally your organic revenue also

meeting analysts estimates. Futures this morning are on the rise. S and P future is up about thirty points down, futures up a hundred ninety two, and Nastas futures up one hundred twelve. Straight ahead your latest local headlines, plus a check of sports, and this is Bloomberg. Thank you Caring. It is six oh seven on Wall Street. We are at fifty eight degrees in Central Park. I got a new crash northbound of Jersey Turnpike, trucklings and exit thirteen.

More coming up in traffic first Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. New Jersey Governor Phil Murphy has put up another potential block to Manhattan's contraffic 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 to Port Authority Executive Director Richard Cotton in October eleventh, letter obtained by Bloomberg News, any reduction in the Port Authority capital plan because of congestion pricing should not come at the expense of any New Jersey projects. On the campaign trails, 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 claim at the former NFL star once urged her to have an abortion. I know nothing about an abortion, and 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 Adams says it's essential for the city to safeguard the rights of the tourists and visitors. We are projected to receive fifties six million tourists 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 safe. The decision comes following the summer's Supreme Court decision to overturn the state's law requiring

a license to carry concealed weapons in public places. NASA says the Dart 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 says the refrigerators sized spacecraft originally struck the asteroid seven million miles away.

Global News twenty four hours a day on air and on Bloomberg Quick Takes, powered by more than journalists analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, it's pretty good, Aim. Thanks Michael six o nine on Wall Street. Time for the Bloomberg Sports South DA. Here's John Stetshem. All right, Nathan, the Yankee signed Garrett Cole to win big games in October. It didn't happened last year. We got roughed up in that

one game playoff in Boston. A Cole pitched like an ace. Last night at the State even six and the third allowed just one run, struck out eight. The bullpen a question mark head into the postseason, but it did its job, getting the last eight ounces of the Yankees to Game one from Cleveland four to one. Home run for Harrison Bader that's his first ever in Finch trights and an Anthony rizzle along two on shot. Game two schedule for tomorrow night, although rain is in the forecast. High drama

on the other American League series opener. Seattle was coming off a win in Toronto where the Mariners came back from an eight to one defensive. This time they had the lead. They got the Justin Verlander. In Houston, they led four nothing later seven to three. Seattle was one out from victory over food is k b ami they call Houston seven. Dodgers beat the Padres in l A five, the three the Phillies in a surprise to Game one in Atlanta seven to six. Openy night for the Rangers.

Little payback on Tampa Bay, who ousted them four months ago in the Stanley Cup playoffs at the Garden because a band of jad scored shorthanded. Then on the power play of the the Blue Shirts one three to one. The Giants are back from London, but their punter is not. Jamie Gallan is a native of Scotland, came to live in the US well in high school. He is stuck in England with a visa issue. The Giants expect him back in time to punt on Sunday against Baltimore. John

Stash Bloomberg Sports. Nathan all Right, John, thank you. This headline just crossing the Bloomberg terminal. UK thirty year guilt yields rise to five per cent for the first time since the Bank of England intervention. Right now, SMP futures are up twenty nine point, staff futures up a hundred ninety nastack futures up a hundred six points, which sucked the inflation outlook. Next with Neil Richardson of a DP. This is Bloomberg. Bloomberg eleven three oh weather morning, sun today,

afternoon clouds near seventy degrees. Those cruds will bring us rain tomorrow in the high Your seventy back in the sunshine 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 out and at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm Karen Moscow, and

we are watching shares of Pepsi this morning. They're up more than two and a half percent in early trading after it forecast or again a revenue for the full year that beat the average analyst estimates. Gilts are falling, the pounds being whipsawed as traders struggled to make sense of UK policy. US knock index futures and European shares are rising ahead of tomorrow's inflation report. And we checked the markets every fifty minutes throughout the trading day. On Bloomberg.

SNP futures have twenty nine points this morning, down features of a hundred eighty five NASDACK futures have one hundred seven The decks in Germany's up four tenths of upper cent ten your treasury little change, you'll three point nine four percent. They yield on the two year four point

to nine percent. Nine X Screwed oil is up three tens of upper cent or twenty seven cents at eighty nine dollars sixty two cents of barrel call makes gold down half percent or eight dollars fifty cents at sixteen seventy seven sixty announced, the euro is at point nine seven zero against the dollar, British found one point one zero seven zero the end one forty six point four zero, and Bitcoin this morning up eight tens of a percent

at nineteen thousand, one hundred seventy dollars. That's a Bloomberg business flash. Now here's Michael bar with Moore on what's going on around the world. Michael Karen, thank you very much. President Joe Biden voiced a siri yesterday with Saudi Arabia over OPEC oil production cuts, accusing the kingdom of allying itself with Russia. 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 declined yesterday to hear a case that would have granted constitutional rights to embryos and fetuses. In baseball, the Yankees one game one in

their a ld S against the Guardians for one. In hockey, the Rangers won 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 journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan all right, Michael, thank you, At six nineteen on Wall Street line from the Bloomberg Interactive

Broker's studios. This is Bloomberg Daybreak. We're getting ready for quite a bit of economic data here, including the final reads on inflation before the FED holds its next meeting in just a couple of weeks. Let's get insights now. We're joined by Neila Richardson, chief economist at a DP. Neila, it's great to speak with you this morning while we await the first of the two inflation readings. Of course,

this morning we get the Producer Price Index. Are you looking for signs of moderation in the p p I? Good morning, Nathan, um. I'm actually looking for some sen stability and consistency in the service component. We might see some moderation and the goods components. Energy prices have fallen,

but for services that is the common thread. But let's go through line to the CPI report and I really think that that's where you're seeing the pressures rise right now is in services as consumers continue to shift their post pandemic spending from goods back into service sectors. If we do see more of that pressure on the services side, what does that imply. Are you thinking that we could see more pressure when it comes to wages? Well, actually, there was some good news in the ADP report that

we released a last week. We saw that pressure in wages that you mentioned. For people who stayed in their jobs for more than a year, that actually accelerated a little bit to seven point eight percent from last month. But for people switching their jobs, and that's the big dynamic right now, is these people who are leaving one

job and moving to the next. We actually saw our index decelerate for the first time since the pandemic um They're still making double digit gains, but the gains aren't as strong as they were just before, so we might that might be an indication that the wage pressures are

softening in the index. I think there's overall UH tendency right now for companies to increase prices to keep up, yes with past labor class, but also in in a world of uncertainty to make sure that their revenues stay afloat as well, and that, as you mentioned, does flow into the consumer price index. A lot of the economists that we've been serving here at Bloomberg are saying that we could see a little bit of softening even in core CPI. What's your call there when it comes to

consumer prices? Yeah, I think there could be some softening, But there's always this the data money economist, whether we reached the peak or not, or whether things are trending down or not. And I would just caution that nothing happens in the straight line anymore. There's too much uncertainty in the world. So we might see a little bump up and down in that core read as well as the fact that it could stay at the levels of that that it could plateau for a while. So I'm

not expecting major changes this week. If we don't see things in a straight line. What does that mean for the Fed? NILA Again, it means that the set is going to have to stay hawkish. They're going to have to stay focused on bringing inflation down. My read on the economy is that the fet is on it in a race against time. They have to bring down inflation even as their actions work with a lag before the

economy softened so much that it dips into respression. So to me, that means that the FED stays aggressive and stay focused on bringing inflation down before their options are are harder, even harder than they are now. Are you expecting Are you expecting that the Fed is going to align with that when we get the f O MC minutes later on this afternoon. We've got about a minute left here. Sure, I think you're going to see a variety of opinions, and the opinions are going to get

more widespread as we move along the cycle. There are those on the fm F l m C which will like to be more cautious and their rate increases, and there are those who are going to be more aggressive. So for market participants, that means more uncertainty that we're not going to account on a three fourth percentage increase every month. It could be point side, that could be a quarter percentage because there's going to be a wider

range of opinions on the side. Ultimately, it's Chapaw who makes that decision, and he's been consistent about pain for the last two months. So I assume a more a continuation and aggressive hikes at least for the next meeting. Yeah, it certainly has been a message that's been hammered time and time again, not just by Chairman Pal, but plenty of other FED speakers as well. Thanks for this, Neil, a great having you on with us this morning as we await all that data UH coming out this afternoon

and into the rest of this week. Neila Richardson, its chief economist at a DP. Of course, we get the producer price in next this morning a thirty Wall Street time, and then the Fed minutes come out at two pm. And of course we are waiting for consumer prices tomorrow and retail sales on Friday. Lots for economists and the FED to digest before that next meeting coming up in

just a couple of weeks, first week of November. Looking ahead to the market open this morning, futures are moving higher, SMP futures up twenty two points, STAFF futures up at one and NASTAC futures are higher by eighty eight points ten. Your treasuries now down one thirty second have a yield of three point nine five on the benchmark ten year Treasury note you're listening to Bloomberg Daybreak Bloomberg eleven three oh weather morning sun will have increasing clouds this afternoon

with the high year seventy degrees, rainy, breezy. Tomorrow be high year seventy again, upper sixties, mostly sunny for Friday fifty eight. Currently in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living free on to Washington, d C. Bloomberg to Boston, Bloomberg one O six one, to San Francisco, Bloomberg N sixty to the Country Sirius XM Cho one nineteen and around the globe to Bloomberg Business app and Bloomberg Radio dot com.

This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar, but I'm Kared Moscow. Were just about three hours away from the open of US trading time for the five things that you need to know to start your day, BRONTI you buy Interacted Brokers. Interacted Brokers charges margin loan rates from three point five eight percent to four point five eight percent rates subject to change.

Learn more at ib k R dot com. Slash compare up first in an interview as CNN, President Biden face questions about a possible contraction in 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 U. S economy is resilient enough to write out any economic turbulence. He also says the American people do not need to prepare for a recession. Well,

tough talk on inflation continues from the Fed. Karen Cleveland FED President Laretta Mester says the Central Bank is not done raising rates and 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 broadcast what we were planning

to do and implemented it. Cleveland FED President LAURRETTA. Mester made the comments in an interview with Bloomberg's Kathleen Hayes catch a full conversation on the Bloomberg Terminal and at bloomberg dot com. But if it still has its critics Nathan, including Muhammad Larry and the Alliance Chief Economic Advisor, and Bloomberg opinion columnists said the FEDS aggressive tightening could lead

to a global slowdown. Central banks and governments have to be very aware that we are getting close to the situation with financial and stability. Is the tail that wags the talk of the economy and muhammedahlary And made the comments on Bloomberg Surveillance Herd weekdays at seven am Eastern on Bloomberg Radio and Television. This morning, caring the latest Producer Price Index comes out eight thirty Wall Street time, we get minutes from the Fed at to stick with

Bloomberg Radio and Television for complete coverage. Meantime, Nathan Niels 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 the bottom. I don't want to get two bolish here because really won't construe my words and say, hey, you know here, it's time to go, and that's not what we're saying.

We're saying there's still you know, last couple endings of this bear market could be quite painful, but you've got to be ready for when that price just to an attractive level. And Morgan Stanley chief US equity strategist Mike Wilson says inventory, labor costs and other latent expenses are raking havoc on company cash flow. 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. SMP futures up nineteen points down, futures have a hundred eighteen NAS day futures up eighty one. Ten year treasury down three thirty seconds, you know, three point nine to six percent. Straight ahead, your latest local headlines plus the check of sports, and this is Bloomberg. Thank you, Karen. Six thirty three on Wall Street, fifty seven degrees now in Central Park. Got a new crash northbound New Jersey Turnpike druck lanes, this time at exit nine. Details coming

up in traffic. Michael Bars here first with more on what's going on in New York and around the world. Good morning, Michael, Good morning. Nathan, New Jersey says traffic ingestion pricing in Manhattan threatened support authority revenue. New Jersey Governor Phil Murphy's as any reduction in the Board 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 of voicing their fury with Saudi Arabia over OPEC production costs. Bloomberg's had Backstor 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 certainly serves the shorter term interests of countries like Russia, a country that stands to game, 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 Daybreak. New York Mayor Eric Adams

signed into law a new concealed to carry measure. It means Times Square officially becomes a gun free zone, and we're going to make sure we create an environment, 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 the New York state law that is being challenged in court. NASA says the dark spacecraft that crashed into a small harmless asteroid two weeks has

has succeeded in shifting the space rocks orbit. NASA Administrator Bill Nelson NASA successfully crashed a refrigerator size spacecraft into the asteroid di MorphOS, seven million miles from Earth. NASA's Bill Nelson. Tributes continue to come in for Angela Lansbury, who died Tuesday. Lansbury appeared in movies like The Manchurian Candidate, on Broadway and on TV in the long running series Murder.

She wrote, Angela Lansbury was global news twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven under journalist and analysts, and more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nick, all right, thanks for that, Michael, Almost six thirty six on Wall Street, John Stash are has the Bloomberg Sports Updates makes nath in October Baseball in the Bronze. Garrett Coles first four Yankee postseason start braw

on the road at the Stadium. He got a big ovation when he came out seventh inning, one out, one on in the Yankees leaving Cleveland four to one. The most comfortable time to acknowledge the crowd, but he 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 in the third inning after a Stephen Kuan homer off of Cole Guardians the bases loaded one app Cole got out of the Yanks also got back to back defensive gems and inning later first in as Waldo Cabrera catch in left field and men on a hot smash to third baseman Josh Donaldson. Game two scheduled

for Tomorrow night, weather permittee. Houston down seven three eighth inn came back stunned Seattle eight seven on a walk off three run homer with two outs bottom of night by Jorda and Albert As the Dodgers beat San Diego five to three. The Phillies hung on to win in Atlanta seven six. The Fills nearly blew a seven one league maker's advantage. JAD was a big part of the Rangers playoff run last season, or run that was ended by Tampa Bay in the conference final. Pretty night at

the Garden's advantage. AD scored shorthanded second period on the power play in the third. The Rangers beat the light and three to one. Nixon Nets both a preseason games on the road tonight. The NFL says it will consider changes, so they're roughing the fanster penalty, but not until after the season. There were two very questionable calls in the five. John Shall, Bloomberg sportsco all right, John, thank you, six

thirty seven on Wall Street. Time now to take a look at talk to some of the names moving in the pre market, and Bloomberg Radio and TV markets correspondent Pretty Gupta is here with the latest proof that even in a time of high inflation, people gotta eat. That's absolutely true, and you know it's coming from a company that has my favorite ratio. It's a snack to drink ratio. Of course we're talking about Pepsi here, p EPs R

taker shares are upbout one and a half percent. They did come out with an earnings change here, PepsiCo raising their guidance again as higher prices lift those sales. Now, this is enormous because, of course, we know to your point, a lot of people are talking about pulling back on some of their spending. That does include things like snacking on the go and of course those raised prices that you have on like picking up a soda for example,

on the way to work for example. The company nevertheless raising its forecast for the full year, saying that consumers are continuing to purchase more of a staff foods and soft drinks despite those rising costs. So to me, Nathan, this is a very good sign when we're talking about is the consumer in America UM kind of falling behind? And right now PepsiCo earnings saying not so much. Yeah,

very interesting earnings called there. And I'm see you're watching Uber still after that announced rule change that could affect the company pretty negatively. Here, what's the stock doing this morning? Well, so, basically this rule change in California was going to potentially make some of their contract drivers UM independent contractors, and what that would mean is that Uber would have to pay a whole lot more to actually UM use their

services and have them part of the business. That news, the idea that this might actually UM work against Uber's favor work kind of saint stock yesterday about eight percent to clients in Uber seven percent to clients and left complete turnaround story this morning, although I will say it's not a complete gain of those eight or seven percent loss damage has been done here, Nathan you be ers, your taker up seven tenths of one percent was coming

after analysts noted there was limited near term risk from the Biden administration proposal on that workers employment status, and this is something that Man Deep Sing of Bloomberg Intelligence said as well, Yes it's a risk, do actually think it's going to be implemented? And for that reason you are starting to see shares rebound just a little bit this morning. How our chip stocks doing this morning. We've got that report just this morning that Intel is looking

at a bunch of job cuts. They really are. And this is a key point to make because we've been seeing this pain and a lot of the tech sector it's something that a lot of people are expecting to kind of spread throughout the rest of the sector. Nevertheless, Intel shows are actually up, I NTC up one two percent,

and it's not alone. All the chip stocks are and Video n v d A up one point one percent, Advanced micro Devices A m D up one percent as well, and of course Micron Mu up one point four percent. This is interesting because for the past two days you've had extreme pain in the chip sector. So I wouldn't necessarily say this is a sector to us being driven by the fundamentals, Nathan, this is a rebound story. It's a technical rebound story, especially given that hiring news. Traditionally

that would take the stock. It's not right now, um, that may change in the coming days, though. Yeah, it is a good point. And chips have been hammered over the last few days and you've been following it. Forest Spoomberg, Radio and TV Markets correspondent Crety Gupta looking at stocks as a hole this morning. A little bit of a bounce back in futures. Contracts s and P futures are up one points down. Futures up a hundred thirty three,

NASAC futures are hired by eighty eight points. The tenure Treasury is down down three thirty seconds for yield close to three point nine six per cent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather morning. Sun will give way to increasing clouds this afternoon in a high near seventy degrees, rainy, breezy. Tomorrow high near seventy once

again upper sixties, mostly sunny by Friday fifty seven. Currently markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm fair at Moscow. Future is on the rise. This morning, we get to the first word breaking news dash for today's morning call, and here's Bill mull ony Bill, good morning, Hey,

Good morning, Karen. That's right. US futures with a bid right now, with death futures up a hundred and sixteen points, subs game nineteen and NASA futures rise by aiding the US ten years at three point nine six percent, Gold is hired by three, Oil is a little changed, and Bitcoin is training higher by point six percent. Shanghai rose one and a half percent overnight, while your PA markets

are trading mixed this morning. And back in the US on the economic Frinday thirty, the Producer Price Index regarding earnings PEPSI beat estimates. And in other news, people familiar so that Intel plans thousands of job cuts later this month, and the ft report that Twitter is reviewing its policies around permanently banning users wrapping things up. A G was

raised to buy over at Jeffreys Stanley. Blackendecker was cut to eco weight over at Morgan Stanley Live from a first breaking news descom Bill Maloney Careen, all right, Bill, thank you to hear live breaking news over here. Bloomberg Times, squawk on your terminal scue you a w u K and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Karen, thank you very much. Ukraine's 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's detained five Russians and three citizens of Ukraine and Armenia over last week's crimea bridge explosion. Anti government protests continuing cities and towns

in Iran for a 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, accused of wearing her her job incorrectly. In baseball, the Yankees one game one of their a lds against the Guardians for one. In hockey, the Rangers won 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 hundred journalists and analysts more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Karen all right, Michael bar thank you at six forty nine on Wall Street, and we turned to news and science and Technology now with a Bloomberg n j I T Stam report. It is brought to Uvayne, New Jersey, Institute of Technology and j I T makes industry ready engineers and more than

twenty fields. If it's engineering is at n j I T what will you make at n j I T learn more at nj I T dot A d U and here's just making news and science, technology, engineering, and math. China is doubling down in its defense of a controversial

COVID zero policy. For the third day this week, the influential People's Daily newspaper, regarded as the mouthpiece of the party, mounted a strident defense of the country's zero tolerance approach to the virus, which deploys lockdowns, border curbs, and frequent testing to suppress the virus and stop transmission. Until is planning a major reduction in headcounts. Sources say it will likely number in the thousands, and an effort to cut

costs and cope with a sputtering personal computer market. The layoffs may be announced as early as this month and now, so says A spacecraft that plowed into a small, harmless asteroid millions of miles away succeeded in shifting its orbit.

The Space Agency attempted to test two weeks ago to see if in the future a killer row could be nudged out of Earth's way Before the impact, the moonlett took eleven hours and fifty five minutes to circle its parent asteroid scientists had anticipated shaving off ten minutes, but now say the impact short in the asteroids orbit by thirty two minutes. And that's a Bloomberg n g I t STEM report. Nathan. Wow, All right, Karen, thank you.

We are live from the Bloomberg Interactive Brokers studios, where it's coming up to six fifty one on Wall Street. Time out to check what's going on in d C. Some of the top stories in our nation's capital include President Biden discussing the economy, Russia's Saudi Arabia and his son Hunter in an interview with CNN, Republicans rallying for herschel Walker and his ailing Senate bid in Georgia, and the Justice Department urging the Supreme Court to stay out

of the maral Lago records fight joining us now. Bloomberg government reporter Emily Wilkins quite a ride ranging interview the President gave to CNN last night. Emily in some interesting words about this difficult economy with just about four weeks

left to the mid term. Yeah, Biden was asked again about a potential for recession, Nathan, which you know, we're seeing more and more organizations, including Bloomberg's own analytics predict that that as a higher potential of happening, but Biden said the American people should not be preparing for a recession at this point. He said that he didn't think there would be one, and if there was one, it

would be very slight. Of course, this comes as the economy has really been the central focus for the mid term elections, and you're going to be seen that Fed boys to deliver a fourth straight seventy five point bass hike early next month, right before the elections. This is something folks and Biden's own party have raised concerns about him.

Thinking about a Senator Elizabeth Moren who has talked about the potential for a recession here um the bald Biden administration and says that there could see higher unemployment and more job loss with the slowing down of the economy. They really haven't started bringing any potential alarm bells yet or really messaging to the American people about the possibility of this occurring. And of course, the President raised some alarm bells in recent days about Russia and the threat

of what he called nuclear armageddon. It sounded a little bit like he was trying to at least clarify what he was trying to say when it comes to Russia and Ukraine. Yeah, Biden did try to clarify his remarks when that interview with Sattam last night. He said those comments were directed towards Putin himself and that he doesn't think Russia will ultimately go through with deploying nuclear weapons.

But Biden said that if that does happen, that the US has already gamed out potential responses, that the Pentagon does have a plan. But then again, Nathan again, he'd be downplayed the idea that that that would actually happen. Um Otherwise, the US is continuing to try and support Ukraine. They're convening a meeting of the Crane Defense Contract Group in Brussels today where Ukraine is expected to push for more advanced weaponry. Biden also talked about the potential for

him to hypothetically meet with Vladimir Putin. There's no meeting on the books, but they're both expected to attend the Group of twenty summit in Bali next month, and Biden said that if Putin came up to talk with him about saying detains US basketball star Britney Griner that he would be open to a potential conversation about that, but he wouldn't want to talk about the war in Ukraine

without Kiev's involvement. They've also been conversations, of course, in Washington about rethinking the US relationship with Saudi Arabia after the OPEC plus production cut announcement. What the President have to say about that? Oh Biden said there would be consequences for Saudi Arabia. He didn't really get into details there, but Nathan, anything that we're going to be seen, we're probably not going to see it until after the bid

term elections. And that's because to a certain extent, you will need Congress to act, and there is the will both with parties. Democrats and Republicans are very frustrated with Saudi Arabia after OPEC plus announced plans to slash their output by two million barrels a day, and so there's some ideas about what they could potentially do a set it for relations share. Robert Menendez Uh, he's urged all freezing of all corporations with Saudi Arabia al right, freezing

all cooperation with Saudia, Saudi Arabia, including arms sales. There's also been discussion of potentially allowing the US to sue OPEC plus companies. So we expect more information on this, but they don't expect anything until Congress gets back after the election. And the comments about President Biden's son Hunter, what did you have to say about that? And is that going to be an issue for the president going

forward potentially? So Biden's really downplayed the report at this point that there's enough evidence to charge his son Hunter with tax and gun crimes. Biden says that he has confidence in his son Hunter, but at this point is really kind of trying to keep a bit of distance between himself and uh, the judicial that's really investigating the Hunter at this time. Uh, Biden is really trying to kind of make a break with his predecessor in not

getting involved with matters of the judiciary. And it's kind of been his approach throughout this entire process, saying that, you know, the legal process has to play out, He's not going to stand in the way, and he remains confident in his son. So this is really Biden continuing

to be consistent with that message. And I think, of course, the next big question is are we going to wide dip, seeing charges being brought and in a big midterm race to watch, it's been really interesting to see Republicans sort of rally around Herschel Walker in Georgia, even after all the heat that's been on him around the abortion issue. Yeah, the secret kids popping up left and right didn't seem

to go interest with him. And now the uh yeah, the the very credible reporting that he did pay for an abortion also Stephen hasn't seemed to damp an interest. You saw Senator Rick Scott, Senator Tom Cotton campaigning with Harshall Walker yesterday. You've seen the Trump super Path also been funding ads in Georgia for him. I think, Nathan, really the big takeaway is it shows how important Georgia

is for Republicans gaining control of the Senate. Obviously, right now the seat is held by Democrat Ffil Warnock, who's had very good Holy numbers at this point. Um, and I think Republicans just want to continue that pressure for for them, I mean, it's a vote of votes a vote, and they don't want to abandon their candidate if that means that they're not going to get control of the

Chamber next year. All right, Emily. As always, thanks for the update on all that's happening in the nation's capital. Bloomberg Government reporter Emily Wilkins with us this morning. You can read more about these stories on Bloomberg dot com or on the Bloomberg terminal. Follow all the latest on Bloomberg Radio in Washington, Bloomberg and one oh five point

seven fam h D two. Right now, SMP futures are moving higher by twenty points, Staff futures up a hundred nineteen and NAZAC futures are higher by eighty four points. Tenure treasuries down to thirty seconds. The yield at three point nine five percent. Yield on the two year four point to nine Nimex crude is touch higher, up two tenths percent or sixteen cents eighty nine dollars fifty four cents of baryl Comix Gold is down six tenths percent

at sixteen seventy six forty announced. The euro right now trading at point nine seven one four against the dollar, British pound one point one zero six eight. The n is at one forty six point five three. Bloomberg Surveillance is next with Tom King, Jonathan Faroh and Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar. This is Bloomberg