Bloomberg Daybreak: October 14, 2022 - Hour 2 (Radio)

The shooting in the Rowley, North Carolina neighborhood has left five dead. I'm Michael blomer More, I'm John stashowern Sports, the Yankees and Guardians played game to this afternoon. Other went for the Astros, the Rangers, one, the Devil's and Islanders Long. That's all training head on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nine Team and around

the world. Old on Bloomberg Radio dot Com and via The Bloomberg Business And Good Morning. I'm Tarin Moscow. I'm Nathan Hagar. Bloomberg Day Break brought to you by se I. Imagine your asset management firms operational infrastructure as a competitive advantage. Let se I show you how at se I C dot Com, slash I m S and US Stock Index futures are lower. This morning. It is six o one on Wall Street, and we check the markets every fifteen

minutes throughout the trading day. On Bloomberg, SMP futures down seven points down, futures down nineteen, nowsday futures down forty three, Nathan Karen. We enter this final trading day of the week coming off a truly historic day after the SMP fire fell two point four percent in reverse course and closed up two point six percent. Bloomberg data going back to show never before as the market experienced such extreme readings both ways in one day. Dave don Ovidian is

chief investment officer at CIBC Private Wealth. Yeah, I don't think a day like this signifies the market bottom. Obviously, we had a a really strong market from mid June to mid August and it was just a bear market rally. But um, yeah, I think we're certainly closer to the end than the beginning of this bull market they've done o beating and at CIBC Private Wealth thinks triggered automated buying helped fuel yesterday's turnaround, but the turnaround maybe sure lived.

Nathan Bank of America says stock markets in the US economy will have to experience more pain before the FED pivots away from aggressive policy strategies. At the bank's sake, quote, it was a decent counter rally, but Low's won't be reached until next year. They say more economic and market pain will be necessary before the Fed backs down. Well, Karen, the White House was grasping for upside after yesterday's inflation reports saw core CPI rise to a forty year high.

President Biden discussed the reading with reporters in Los Angeles. Americans are squeezed by the cost of the living. It's been true for years, and folks don't need to be a report to tell them there'll be a squeeze. Fighting this battle every day is the key reason why I ran for president, Nited states. However, President Biden did note overall inflation was just two percent over the last three months. He said, quote that's down from eleven percent over the

prior three months, well over the weekend. Nathan the President conceded that a slight recession is possible, but one administration official notes that it's not inevitable. We spoke to US Commerce Secretary Gina Ramando. I talked to CEOs of the biggest companies and the smallest companies every day in every industry. Yes, they're anxious. Global markets are unstable. The war in Ukraine obviously makes everything unstable. But they're also telling me customers

are buying. Consumers are buying, they are still hiring, American companies are innovating. Commerce Secretary Genie Raimondo made the comments in an interview on Bloomberg Radio and Television. Catch the full conversation online at Bloomberg dot com. One of those CEOs, Karen, appears to have a more tep but I'll look on the economy. JP Morgan Chases Jamie Diamond discussed inflation and the FED at a conference in Washington yesterday. I don't know if it could be a soft landing. I don't

think so. But my mild session or tougher session. My point in the tougher session, yeah, you expect the market. I'm not gonna keep eyes across those three things. But for all of us who have to worry about risk. You, of course you should plan for those things. Jamie Diamond says, his gut tells him the Federal Reserve will have to raise rates higher than four and a half percent in order to detain inflation. Well Diamond's bank is among several

schedule to kick off earning season today, Nathan. We get a preview on that from Bloomberg's Jeff Bellinger. By the time the markets opened this morning, investors will have heard from JP Morgan, Chase, City Group, Morgan Stanley, and Wells Fargo. Investors will be interested in the results from the last quarter, but they'll likely be even more interested to hear what

banking executives expect going forward. Bloomberg says the big banks will announce they're setting aside billions of dollars to protect against expected loan losses as growing numbers of customers get squeezed by inflation and high interest rates. Jeff Bellinger Bloomberg day Break, All right, Jeff, thank you. We also get more economic data to the jest this morning in the former retail sales and consumer sentiment here with Morris Bloomberg's

and he Delt Judice. The prior report covering August showed US retail sales rebounded from the July slump. Bloomberg Economics as today's data will most likely indicate spending on consumer goods move toward pre pandemic levels in September. That's taking inflation into account. Also today, the University of Michigan issues it's US consumer Sentiment index for early October, and Bloomberg Economics anticipates another slugger's reading, the sentiment index at a

record low earlier in the year. Beneat Dealt Judaic s Bloomberg Day Break, Right, Benny, thank you, and you're up this morning. It looks like the UK government will abandon its plans for massive tax cuts. Details are scarce, but Bloomberg News has learned Prime Minister list trust will reverse parts of our economic strategy. Begin more from Bloomberg's James Wilcock in London. Good morning, James, Good morning, Karen Nathan

Decas Chancellor quasi class. That's the London, London un especially cutting short his trip to Washington, UK ask that's the stage a comeback on the news. It's trying to suspect a youth sound is down the road Field, Antenia bonds pledged to be a full presentment of the market opens and it all comes at the back of England to wrap up their emergency bond buying program. Late today in London,

James Wilcock, Bloomberg Daybreak, James, Thanks. In Corporate news this morning, lawyers for Twitter say Elon Musk is under investigation over his attempt to take the company private. We get the details from Bloomberg's Doug Prisner. In April, the SEC sent a query to Musko over how he initially disclosed his nine percent stake in Twitter. He did so a week later than regulations allow, and he used a filing typically

reserved for passive investors. Then in June, the SEC wanted information on Musk, tweeting the deal cannot move forward until he was given more information about spam and fraudulent accounts. Now in a court filing in Delaware, Twitter's lawyers say Musk has exchanged substantive correspondence with federal authorities as they look into his conduct, and they say this game of hide the ball must end in New York. I'm Doug Prisner,

Bloomberg Daybreak. All right, thank you, and Bloomberg Daybreak brought to you by ib k R and Spin Advisers switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at ibkr dot com. Slash R, I, A, S ANDP. Future is now little changed. Straight ahead your latest local headlines plus the check of sports and this is Bloomberg.

Thank you. Carring six O seven on Wall Street fifty three degrees in Central Park got a new crash northbound Cross Island Parkway at Northern Boulevard. Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. The final January six Committee hearing's theme was that Donald Trump began the plan to stay in office as early as July. Bloomberg's headboxter as the story to

remain no matter what the vote showed in November. Coachair List Cheney says, what's left We must seek the testimony under oath of January six. Central Player Donald Trump, followed by a unit must vote to subpoena from the committee. Meanwhile, the Supreme Court has refused to get involved in Trump's request to return seized documents from our lago. It also refused to reinstate a special master. A major victory for the Department of Justice in San Francisco. I'm at Baxter

Bloomberg Gay Break. Connecticut Governor Lamant has ordered flags flown at half staff in the state after three officers were shot in the line of duty in Bristol. Two of the officers are dead. Governor Lamont said there are too many illegal guns and not enough cops on the streets. I hope when you see your policeman woman on the street corner, you go up and say thank you for what you do. I hope you show a little respect

for the folks that are there, Governor Lamont. State police said, and a release that the nine one on one called Wednesday night about a dispute between two siblings appears to have been a deliberate act to lure law enforcement to the scene in Bristol. In North Carolina, Raleigh police say a male juvenile is in the custody hours after a masch dooting that left five people dead, including an off

duty police officer, in the neighborhood. Raleigh Mayor Mary Anne Baldwin praise the responding officers, saying they put their lives at a risk to protect the city. You know, you pray that something like this will never happen here. It did, and I want to thank all the officers who responded in the way they did. Raleigh Mayor Baldwin. Police say there's no word on a motive. North Korea has fired yet another ballistic missile this launch game. As North Korea

also flew warplanes near the border with South Korea. Beyong Yang says they're meant as a warning to Seoul and the US about their joint military exercises. 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 add twenty countries. I'm Michael Barr. This is Bloomberg, Nathan. Thank you. Michael. Six o nine on Wall Street. Time

for the Bloomberg Sports Update with John sten Shower. All right, Nathan, Yankees and Guardians two days off between games one and two, but set to go at one o'clock at the stadium, So unless there's another rain out, no more days off. The rain was expected and Aaron Boone was asked before and the effect of a postpone man and it would probably affect the pitching rotation if he went five games and he had to play four in a row. Sure, Um, the lineup, no, I mean we play, that's what you

do is in baseball as you play every day. So shouldn't affect that. Um, you know, that's more who we're going up against, matchups, things like that. When today starts, Est Cortez Shane Bieber for Cleveland, Houston's up to nothing. In the other a l DS, the Astros had their slugger you're Don Alvarez, the fact he hit the game winning three run over in game one and he hit the go ahead two run shots sixteing the game two

four two. Astros went over Seattle a couple of game threes today tonight in the n LDS, both series are tied at one week six underway in Chicago, Washington won twelve to seven and in the four game Losings made the only Commanders touchdown scored by a rookie running back Brian Robinson, who has made a remarka will come back. Two months ago, he was shot twice in the leg in an attempt at robbery in DC. Jets and Giants

looking to keep their warning ways going. Sunday, the Jets visit Green Bay, the Giants are home for Baltimore on the Giants punter is now back home. The native Scott Jamie Gillen was unable to fly home with the team do a visa issue, so he had been staying at an airbnb in London. Rangers already two and oh. They won seven three at Minnesota. Chris Cryder fifty two goals last year and he had the first and last Ranger goals. Islander season opener at three one, Home lost the floor

to the Devil's lost five to at Philadelphia. John stash were Bloomberg Sports, Nathan, thank you, John. We're watching futures take a bit of a turn this morning, SMP futures in that little change down futures have turned higher, up forty two points. Nastack futures still lower down eighteen Tenure treasuries now up ten thirty seconds yield three point nine

zero percent. As we await bank earnings. Will check in the next on it with Ken Leon, director of Equity Research at c f r A. This is Bloomberg Bloomberg eleven three oh weather. We'll clear this afternoon, get up to the upper sixties, sunny near seventy tomorrow, partly sunny Sunday with highs in the upper sixties right now fifty three degrees in Central Park. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the

Bloomberg Business Outland at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Karin Moscow. This updates brought to you by SEI SI Managers don't get results that are off the charts when their solutions are off the shelf. Learn how seis operating platform can turn infrastructure into a competitive advantage at sei C dot Com, slash Tech u s Dock Index futures are well. Little change now as investors away key earnings reports from Big Wall Street banks.

Bonds are advancing lad UK guilts, which benefit from speculation that controversial tax cunning plans would be revised. We checked the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures again, that'll change down. Futures up twenty six, NAS day futures down thirty one the docks in Germany is up eight tenths of uppercent ten year treasury up eleven thirty seconds. You know, three point eight nine percent they yield on the two year four

point four two percent. Nine X Screwed oil is down nine ten percent or eighty one cents at eighty eight dollars. Twenty nine cents of barrel co mix gold is down one percent or sixteen dollars forty cents at sixteen sixty fifty announced. The euro point nine seven three two against the dollar, British found one point one to eight and the end one forty seven point six five. Looking at a bitcoin, it's up one and a half percent at

nineteen thousand, seven hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. The House January six Committee voted unanimously to supoena former President Donald Trump or his testimony about the one Capital Often Act. Earlier in the hearing, the panel presented new video of how Speaker Nancy Pelosi and other congressional leaders pleading for help.

It also outlined Trump's multipart plan to overturn his twenty election loss. President Joe Biden again criticized high US gas prices and said he'd announced new actions to combat what he described as a key driver of inflation. In baseball, the Yankees will play the Guardians in game two of their A LBS after last night's rain out. The Astros lead two games to zip over the Mariners in their A LBS after last night's four to win. Thursday Night Football,

the Commanders beat the Bears twelve seven. In the NHL, the Rangers won, the Devil's Islanders and Capitals all lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and analysts more than a hundred twenty countries. Michael Blar, this is Bloomberg, Nathan, I'm Michael. Thank you. It's almost six twenty on Wall Street Line from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak on what is about to be

a very busy day in bank earning. Season four of the Big six Wall Street firms report before the opening bell. Ahead of it. We're joined by Ken Leon, director of Equity Research at c f R, A Ken. It's great to speak with you on a bank earnings Friday. And when we hear from the likes of JP Morgan's CEO Jamie Diamond doubling down on his predictions for recession in the next few months, I guess the question for investors

is how bad could these earnings be? Well, good morning, and and third quarter results actually are going to be fairly resilient, and we'll see strengths in certain areas. The consumer will still be stable, um, and rising rates helps UH in terms of earnings. But looking ahead, you're right, it's really the world of worry is what will these banks do UH in a recession next year and certainly for the fourth cool it or we're not looking for

any up check in terms of investment banking. Volatility in the markets has made trading an offset to a decline in investment banking. But you get to main street and the consumer and small business. UH, they're beginning to feel some pain points. UM. We're not sure how much the managements today will speak to what they see in their crystal ball, but they'll say that the consumer is probably resilient just based on the third quarter results. Now, we did hear that just a couple of days ago from

Bank of America's CEO Brian moynihan. Where do you think we're gonna see that sign of resiliency given that interest rates are moving higher? Do you think that helps savers? But in terms of getting loans or taking loans, that could make things more difficult, couldn't it. It will, so the lending activity will certainly begin to flow down, and certainly for respect and UH, that will really reduce the full pocity. So so for banks who can charge more

with rising rates, it's the volume decline. Then it's kind of like an offset. So it's not a win win situation. And that's kind of the environment ahead. You just don't have a great scenario in terms of the economy that's going to propel bank earnings higher next year. One of the reasons why the stocks have been so low. But the banks do have a fortress balacy, as Damie diamond says, UM they're well capitalized, but regulators are going to make sure that the capital buffers are big enough in case

there's any unexpected punch. We've seen a lot of news, whether it's the Bank of England credits with UM blending even into China's construction residential market. You know, there's always lots of worries, but right now the bank's balencyats are very strong and can really endure any damper next year. Are you thinking that that strengthen the balance sheets is going to translate into even further provisions for loan losses.

We've seen billions of dollars on that score. Well, we'll probably say some of the banks book anywhere from five million to a billion to begin to build a cushion or a reserve for consumer credit card losses maybe next year. We have not yet seen on the commercial industrial loan book any distressed industries, and that's been a run rate products for the last five years or so where we never really focus on a distress industry. To overall, the

credit situation actually looks good. But one important thing I think for for listeners here is that the banks always lend to the best bars, including consumers with high psycho scores, and what happens with the saddlebanks might be the first cracks that we see what a weakening consumer interesting. Ken Ley on great to get your thoughts as we await

those earnings. Starting with JP Morgan and Wells Fargo. Uh, then we'll hear from Morgan Stanley and City Group Oll cap things off for us as the first four of the Big six report just today, and ken Leon is going to be with us throughout this morning as those results come in. Ken leyon, director of Equity Research at CF are a part of our coverage of bank earnings Friday this morning, So check back with Bloomberg Radio and Bloomberg Television as we keep things going here with the

banks reporting kicking off third quarter earning season. Looking ahead to the market open this morning, Uh, some churn in the futures. SMP futures are now higher by three points down futures up sixties seven NASDAC future is still in the red, but not by much, now down seven points. Tenure Treasury is up twelve thirty seconds, yield three point eight nine percent, yield on the two year four point

four one percent. British Pound trading at one point one to six eight on reports UK Time Minister Liz Trust may reverse some of her mini budget. This is Bloomberg Bloomberg eleven three oh Weather clearing this afternoon with highs in the upper sixties, will be sunny tomorrow, high near seventy upper sixties once again on a partly sunny Sunday. Right now, it's fifty four degrees in Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio in New York.

Bloomberg E Living Free to Washington, d C. Bloomberg On to Boston, Bloomberg one O six one to San Francisco, Bloomberg NOME sixteen to the Country Sirius XM Gentle one nineteen and around the globe the Bloomberg Business Act and Bloomberg Radio dot Com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hagar and I'm Karen Moscow. We are just about three hours away from the open of US trading. Time to the five Things you need to Notice start your day. Brought to you

by Interactive Brokers. Interactive Brokers charges margin loan rates from three point five eight percent to four point five eight percent rate subject to change. Learn more at i dk R dot com slash timpare. First, we enter the week's

final trading session, coming off a volatile day. The S and P fell two point four percent after yesterday's CPI reading, only to close up two point six percent, Lori Calvasino's head of US equity strategy at RBC Capital Markets, you have to really look stock by stocks, sector by sector, different parts of the market, figure out where you think most of the bad news is baked and where you want to be for the longer term, and start layering in and it may go down more before it goes

back up. Lori Calvasino with RBC says, we likely have not seen a bottom yet and yesterday's turnaround maybe short lived here. And that's according to Bank of America. That firm strategists say stock markets in the U s economy will have to experience more pain before the Fed pivots away from aggressive tightening. They don't expect the bottom until next year. The White House. Meantime, Nathan was grasping for upside after US inflation rose to a forty year high

last month. President Biden spoke to reporters in Los Angeles. We also need to make more progress bringing down the prices across the board. That's why I just couldn't disagree more with my Republican friends who say the biggest problem our economy right now is it working. Folks are making too much money. President Biden also says too many Americans

are being squeezed by the current cost of living. Okay, Let's saw corporate earnings now, Karen JP, Morgan's City Group, Morgan Stanley, and Wells Fargo all report before the market opens today. Banks are expected to post the biggest profit decline of any sector this quarter as analysts turns sour

on the outlook for financials. Will also be watching for how much cash firms are setting aside for potentially bad loans and turning overseas Nathan, it looks like the UK government will abandon its plans for a massive tax CONTs. Bloomberg News has learned Prime Minister List Trust will reverse parts of our economic strategy. As the Bank of England ends its emergency bond buying program today, we spoke with former bo E member Martin Wheeley about the central bank

putting pressure on the government. Drew Bailey has given some thought to the question of what help might be needed next week and in what circumstances that could probably be done without continuing the current steam in operation, and a former Bank of England member, Martin Wheeley says reversing the plan for massive tax cuts would restore the UK government's credibility.

According to the Telegraph, Trust will instead announce an increase in corporate taxes to a rate of We are watching his headline across the Bloomberg with the Times reporting that Cortang is being sacked as chancellor. And again that's being reported by the Times. Okay, Karen, Thanks, six thirty three Now on Wall Street where fifty four degrees in Central Park and Michael Barr has war on what's going on in New York and around the world. Michael, good morning,

Good morning, Nathan. The House committee investigating last year's attack on the US Capitol voted to subpoena Donald Trump. The committee and a unanimous vote, agreed to demand documents and testimony Trump about his role in the January sixth attack. Committee chairman Benny Thompson, he is the one person at the center of the story of what happened on January six,

so you want to hear from him. In a post on his Truth social platform overnight, Trump said, I will be putting out my response to the unselect committee of political hacks and thugs later this morning. The U s. Supreme Court handed former President Donald Trump a loss in his fight over records the FBI seas from his Mara lago of state. The High Court refused to intervene and reinstate a special master's authority to review a set of

key documents with classified markings. Authorities in Connecticut say to Bristol police officers who was shot dead had apparently been drawn into an ambush my emergency call about possible domestic violence. The third officer was wounded in the gunfire. Late Wednesday night, Governor Ned Lamott said there are too many illegal guns and not enough cops on the streets. Just a reminder what the men in blue, men and women in blue do every day on our behalf to keep us safe

and the risk they take. Governor Lamont ordered all us and stayed flags lowered two half staff. A shooting opened fire. You know. A shooter opened fire along a walking trail and a rally, North Carolina neighborhood, killing an off duty police officer and four others. Police said the suspect was arrested. North Carolina Governor Roy Cooper, this is a senseless, horrific,

an infuriating active violence that has been committed. Authority has been only described the suspected shooter as a white male juvenile. A Florida jury rejected the death penalty for the person responsible for the teen Parkland school shooting that left seventeen students and staff dead. The jury, who needed a unanimous vote for capital punishment, instead recommended a sentence of life without parole. Many family members of the vitims were stunned.

Patricia Oliver's son Joachin, was shot in the head by Cruz and says her son will not get justice. The only one who got the way to get out of this was the defendant. The jury's foreman says, three voted against the death penalty. Global nemes twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. Michael bar this is Bloomberg, Navid, Michael thanks

almost six thirty six On Wall Street. John Stanshower has the Bloomberg Sports updates, makes Nathan Day Baseball in the Bronx one o'clock start, Yankees Guardians Game two, and Esta Cortez and Shane Bieber. Last night's rain out means no more off days in the series. Astros and Maritors played Game two and Houston Seattle, who blew up four run lead in Game one, had a lead in the sixth Nae won albats punish just want good five and the

Langius Crawford Foxes pretty too. You're not Baby Yammy. Albert has had the walk off three run shot to what the opener, and the Astros won forward it too. They leave the series to nothing. Game three is tomorrow will be the first postseason game in Seattle in twenty one years. This afternoon is the first one in Philadelphia in eleven years. Phillias and Braves. They're tied to one, so the Dodgers

and Padres. They played tonight in San Diego. The day began for the Washington Commanders with an explosive ESPN report the team's owner Dan Snyder has not been forced out by fellow owners because he has dirt on several of them and on Commissioner Roger Goodell, and that he can quote blow up the NFL if they try to force them out. Snyder has already been fined and suspended for his actions as team owner. The Commanders then played their Thursday night game in Chicago. They held on to win

twelve to seven. The Bears had a first and goal at the Washington five in the final minute, but couldn't score. Both teams are two and four. The Rangers are two and oh seven. Three round in Minnesota, three goals in the first period, three more than the third. Chris Cryer scored twice or Timmy pannerin a goal free assists. Rangers play again tonight in Winnipeg. The Islander opener was a three one home lost to Florida Devils. Gave up four Street goals, lost five to at Philadelphia Nicks and Nets

of their preseason finale. Attendant John Stash went Bloomberg Sports Nathan all Right, John, thank you to six thirty seven on Wall Street on what is about to be a very busy morning for Allison Williams, senior analysts for Global investment banks at Bloomberg Intelligence, awaiting the first four of the big six Wall Street firms to report earnings before the opening bell. Allison's with us now starting off with JP Morgan. Of course, Allison, let's go through these banks

one by one. What are you looking for? At JPM. We're looking for a very strong net interest income growth at all the banks, and we do think that banks such as JP Morgan and City Group, could UM increase their guide for the full year two UM. I don't think that's the focus though. I think the focus is really what's going to be happening with provisions. What can provisions tell us about how the banks are thinking about

in terms of economic risk? For three, do you think a resiliency for the consumer might be something to keep the banks resilient at least for this quarter? I do think that. I think we're going to see UM strength in terms of spending. We're gonna see loan growth UM somewhat slowing for all the banks, but still healthy. And UM credit we also think remains strong. There's UM you know, maybe some pockets of weakness on the lower end, but that's a smaller part of the business for these big banks.

Apart from JP Morgan, of course, we'll hear from Wells Fargo later on this hour as well. What's the main point you're looking for from Wells UM so again strong net interest income, UM, consumer everything that we just discussed UM for a whiles. Fargo in particular, what's happening on the cost side. Wells Fargo is going to have positive operating leverage this year. We expect that's something that a lot of the other banks are not going to have. Somewhat of a reason for that is their skew towards

net interest income. But they've also been making structural costs to improve their returns, and that's what the focus with Wells and with Morgan Stanley to follow. A lot of the focus there, I would have to think is on the investment banking side. It is, but I think the new news we're gonna be looking at is on the cost side, because we know that from a revenue perspective, UM obviously, just looking at the markets, fees are going

to be UM way down. Equity trading, which is the area that they're relatively stronger in UM is not going to be the story of this quarter. The story is going to be thick. They will get a benefit from fixed which is fixed income trading, so some cross currents on revenue, but UM generally going to be lower. So what does that mean for the cost side of things? What are they doing on the compensation appruals and will

they pull back some on discretionary spending. That's that was something that they had flagged as a potential profit lever all Right, Allison Williams of Bloomberg Intelligence. Stick with us. We are expecting those first earnings to come out in the next few minutes from JP Morgan and Wells Fargo. So alisonbi with us in the minutes ahead to break down those results as they crossed the Bloomberg terminal. Looking

into the market. Open futures have turned higher now. SMP futures are up seven points, STOUT futures of ninety two, NASADAC futures up four points. You're listening to Bloomberg Daybreak Bloomberg eleven three oh Weather clearing today with highs in the upper sixties, will be sunny to start the weekend. Tomorrow's high near seventy. Call it partly sunny for Sunday, upper sixties for highs right now fifty four in Central

Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quicktake. He's a Bloomberg Business Flash and I'm far in Moscow. This updates brought to you by Seist Managers, uh Mature, brought to you by Interactive Brokers Mistake ibk R Event Trader offers a new way to trade futures. Use event contracts to trade your opinion on yes or no questions and key CM futures markets. Learn more at

event trader dot Interactive Brokers dot com. Well, we are watching earnings crossing the Bloomberg. We're gonna have more on that in just a few minutes, but we are hearing from JP Morgan Chase and Whilst Fargo. We're also watching the pound is a transits losses against the US dollar after a tweet from the Times that UK Chancellor Quasi Quartang is being sacked. This in preparation for a U

turn on Prime Minister Liz Trust's economic policy. Futures meanwhile, are higher, and we go to the First Word Breaking news desk for today's morning call with Bill Maloney. Bill, good morning, Hey, good morning, Karen. That's right. US futures with a modest bid right now, with Doubt futures up a hundred and fifteen points, sesamees gains ten and Nesta

futures are higher by a point. The US chen yield at three point nine percent, Gold is down eleven, oil is in the red, and bitcoin is trading higher by one point six percent. Japan rose three point three percent overnight, while up markets are posting one percent across the board and back in the US on the economic front at a thirty retail Sales and at ten o'clock Michigan Sentiment.

Regarding earnings, you mentioned JP Morgan and Wells Fargo. They both just reported revenue beat estimates for both companies, and United Health beat and raised its full year outlook. Wrapping things up north for progomming was cut to neutral over ed JP Morgan Live from the first to breaking news Descomb, Bill Maloney care alright, Bill, thank you to hear live

breaking news over here. Bloomberg Time squawk on your terminal squ a w K again more on those earnings in just a moment from now, and again UK Chancellor Quasi Quark Tang is being sacked in preparation for a U turn on Prime Minister list. Trust is economic policy that according to a tweet from the Times and as a Bloomberg business flash, now it's time for a check of what's going on around the world, and here's Michael Barr. Michael,

thank you very much. Jar In the House. January six, Committee wrapped up yesterday's public hearing with the call to subpoena former President Trump. Trump responded saying the UNSOLID committee is a giant scam. Meanwhile, former President Trump is offer another setback and the Mara Logo documents investigation. The Supreme Court has refused to get involved in a dispute over whether a third party should review those classified documents sees

by the FBI and Baseball. The Yankees will play the Guardians in Game two of their A l d S. The Astros lead too games zip over the Mariners in their A l DS after last night's four to win Thursday Night Football Commanders beat the Bears twelve seven NHL, the Rangers one, Devil's Islanders and Capitals lost. Global News twenty four hours a day on air and on Bloomberg Quicktake power by more than the journalists and analysts more

than a hundred twenty countries. Michael bar this is Bloomberg, Nathan. Thank you, Michael. We are live from the Bloomberg Interactive Brokers studios, where it's coming up to six fifty on Wall Street as we continue to watch headlines cross the Bloomberg terminal from JP Morgan Chase and Wells Fargo, both reporting earnings beats this morning let's bring back Bloomberg's Global Global Investment Banks Senior analyst Alison Williams. Watching these headlines

cross this morning. UH, solid beats all around, it looks like Allison, So the big story so far looks like the very strong net interest income and so that was something that UM, you know, the company itself had had hinted that their full year guidance might go up. UM numbers coming in better for both these banks. We expect the same thing from City Group also on JP Morgan better fixed income trading, equity trading a little light, but net net still positive. M and A f is coming

in better than expected. That's also good. UM. Looking at the low lost provision, that lost provision is a bit higher, UH, current charge offs are lower. So good strong credit that we're seeing right now, but perhaps a little bit more conservative about the outlook. Now. We've seen JP Morgan shares jump as high as I think about one point seven percent on those results. Now they're appearing some of those

gains interesting as well. Allison, to see this headline that Wells Fargoes quarter included a two billion dollar loss on regulatory matters and other costs. That is exactly the number that I was just looking at UM. So, you know, Wells Fargo, when are we going to get past these sizeable charges? We keep thinking we're past the worst UM and we keep getting them. I mean, it's on the core basis for Wells Fargo. The story about improving costs

looks like that they're still continuing to execute. But when are we going to get these regulatory um issues, these regulatory costs behind the bank. Also seeing that JP Morgan CEO Jamie Diamond says he hopes to resume BUYBAX early next year. What's your read on that? That's a positive? You know. One of the things, uh, one of the big surprises that we got this year for all the banks, well at least for JP Morgan Bank of American City. We did see a big increase in their capital ratios

that's coming to bear this quarter. But then we have increases also across several banks that we're expecting uh in twenty twenty three. The fact that they are building capital, getting above those ratios and able to begin buy backs, that's a key positive for the banks. Bloomberg's Bloomberg Intelligence Senior analysts for Global Investment banks, Allison Williams breaking down the JP Morgan and Wells Fargo results as they continue

across the Bloomberg terminal. Be checking back with you throughout the morning here on Bloomberg Radio six fifty two. Now on Wall Street. Usually time to check what's going on in d C. But the big story is happening this morning in the capital of the United Kingdom, where the Chancellor Quasi Quartang has just gotten back from Washington, and reports have it he may be out of a job.

Joining us now Bloomberg opinion columnist Marcus Ashworth as we await details on the U turn from Prime Minister Liz Trust big U turn. It looks like, Marcus, I was just thinking, listen to Alison, that I was to be able to look at a very opaque, really public questions. I mean, what is going on? I mean, my lord, the simple rule here is that he can't present a budget which people can understand, appreciate or get along with.

You shouldn't be in politics, and I'm fartually unfortunately Quasi Quarte, remember the brightest guy in many different rooms, but he is not a politician, and he unfortunately looks like he's going to be a defllustrated about the expression the chat is that either Terres Coffee is currently the sort of defintely Prime Minister, but really the Health Secretary or indeed a blastem of past Jeremy Hunt, the MP quite close to our live um might be pulled back from the

backbenches UM and board on his chancellor. But certainly they are going to have to rejig make the numbers add up join in the middle. And clearly the guilt market is is loving it. There's an assid buy back the last one to day. We'll see that load of this afternoon.

But you know, really all eyes on the politics because if they take back particularly the corporation tax saying it may make the numbers joined a little bit year and that really is what people want to see funded budget where people can understand when the money is come because they are going to be a lot more money this year. People have to make sure they understand where it's all

coming from and how it's funded. But in terms of when currency traders are looking for Marcus, I have to think that they want to see that the budget is coming in a little bit closer than just a little bit of a gap moving in well maybe, but I mean the point is is that there's all this would have been possible always that the government new governments trying to could be probble if they've just gone about it in the right way. Announcing a top rate tax cub

and indeed bank of bonus things. If you could have done that a year's time and it wouldn't have no one of bed Blatton Island. They could have done things and roll the pitch made us aware of what's going on. And they literally needed to wait for the Office four Budget Responsibility, which marks the homework to make sure the government finances make sense. And because it shifted it from a three year horizon to a five year horizon, they're

going to all the scene. It's a presentational problem. Unfortunately, No, I'll have to row back on all the good things that they might have been doing for economic growth and go back to where we were before, which I think was actually run us under the previous chance Serbroty snack, you know, hiking taxes on corporations. Indeed, I think that they're being will touched this. They'll keep this reverse up in the middle of a recession or it's not the right thing to have done. But there we go back

back in the future. Yeah, we'll see where the future goes with Let's trust the Prime Minister expected to hold a news conference nine am Wall Street time on the reports of the Chancellor. Quasi Quartean could be out. Bloomberg copinion columnist Marcus Ashworth thanks for this, appreciate you coming on with us. Karen, all right, Nathan, thank you. It is six fifty six on Wall Street. Let's turn to news now in science and technology with the Bloomberg and

j I T STEM Report. It is run to you by New Jersey Institute of Technology n j I T and ACE industry ready engineers and more than twenty fields. If it's engineering, it's at n j I T. What will you make at n j I T. Learn more at n j I T dot E d U. Well, here's what's making news and science, technology, engineering and math.

The Antarctic ozone whole last week peaked at a moderately large size for the third straight year, bigger than the size of North America, but experts say it's still generally shrinking despite recent blips because of high altitude cold cold weather. The ozone hole hit its peak size of more than ten million square miles earlier this month. NASA says as

the largest it's been since. Scientists say because of cooler than normal temperatures over the southern polar regions at seven to twelve miles high where the ozone hole is, conditions are ripe for ozone munching chlorine chemicals and Meta Platforms is urging a judge to reject the US Federal Trade Commission's attempt to block the company's acquisition of virtual reality app Within Unlimited, not to argue the FTC has not

laid out the elements to slow the show. The deal announced last year but hurt potential competition and is still young. VR Fitness Space and Apple and Golden Sacks are teaming up to offer savings accounts the users of the tech company's credit card. The move builds on the existing credit card partnership between the two companies. And that's the Bloomberg and j I t Stem report. And again futures this

morning are on the rise. We continue to watch that story the suite that UK Chancellor Quasi Quarteng is being sacked. He's going to be out in preparation for a U turn on Prime Minister list Trust is economic policy. They will continue to discuss that story and delve into it on Bloomberg Surveillance, which is a straight ahead. They're also going to be looking into the earnings we got this morning from JP Morgan, Chase and Whiles Fargo, among others,

and for Nathan Hagar. I'm Karen Moscow and this is Bloomberg