Bloomberg Daybreak: October 17, 2022 - Hour 1 (Radio)

Lous Ukraine's capital was under missile attack from Russia to day. Michael Barroom more ahead, I'm John Stairs, showering sports. The Yankees stayed alive with the wooden cleavel. The decisive Game five is today. The winds continue for the Jets and Giants. That's all Trading ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco

Syrius x M one nineteen and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business app. And good morning. I'm Karen Moscow. I'm Nathan Hagar. Bloomberg Daybreak is brought to you by SEI. Built on advanced technologies and fifty years of innovation. SEI offers asset managers, a comprehensive and flexible operations outsourcing platform. Go to se I C dot Com, slash Managers and US dot Index.

Futures on the rise this morning five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg. SNP futures up thirty two points, DAL futures have two hundred nineteen and ASDAG futures up one hundred seventeen. Nathan Karen, We begin this morning in Europe, where the pound and UK bonds are rallying. That's due to expectations that more of Prime Minister Liz

Trust's package of unfunded tax cuts maybe reversed. Newly appointed Chancellor Jeremy Hunt will make a statement about an hour from now. We get more from Bloomberg's Lizzie Burden in London. It does seem like Jeremy Hunt is peace by peach turning crust and on the in Nacconomic he's excited to bring forward more figal uturned in order to calm the market. This is really to astonomic things sold the parts and

exchange the market stability. Bloomberg's Lizzie Burden reports after Haunt's address this morning, he will then make remarks to the House of Commons. Well in Asia, it's all about China this morning, Nathan. President Jijin Ping said he's staying the course as the country faces what he calls dangerous storms and growing challenges from the US, and in almost two hours speech to open the Communist Party Congress, she said

China will pursue development while ensuring national security. We have worked with firm resolve to say for national security, fended off and diffused the major risks and enshort social stability. We have to vote a great energy to modernizing our national defense. President jijin Ping, speaking through an interpreter, also pledged Beijing will prevail in its tech battle with the US over computer chips. Well back here in US, Karen,

futures are rising to start the week. It follows another sell off on Friday, when the SNP five hundred dropped two point four percent. Emily Rowland is co chief investment strategist at John Hancock Investment Management. It's tough to say, we're in a recession now with unemployment, you know, near a fifty year low, but we're probably going there. And frankly, some parts of the market are pricing that in you know,

work down over inequity markets. That's more than two thirds of the way there as far as your average bear market, but bonds just aren't pricing it in John Hancock's. Emily Rowland says inflation has been enemy number one for the markets because see a rally and stocks Nathan A's. According to Morgan Stanley longtime equity bear Mike Wilson, he says stocks are right for a short term rally and the

absence of earnings capitulation or an official recession. Wilson says slump in the SNP five hundred this year has left at testing a serious floor of support at its two hundred week moving average. He's not ruling out the s and P five hundred rising about forty one hundred points. That would be about a sixt gain from current levels. Inflation and interest rates are still the main focus for

US markets. Karen St. Louis, FED President Jim Bullard is leaving open the possibility that the Central Bank would raise interest rates by seventy five basis points at each of its next two meetings. At the same time, he says it's premature to make that call whether the committee would want to full some proposed or thought of policy rate increases from three into the December meeting. I think that's

our judgment. It's it's premature to make St. Louis FED President Jim Bullard made the comments at I m F and World Bank meetings over the weekend. More earnings are

also front end center this morning, Nathan. We get results from Bank of America shortly, and here are the preview as Bloomberg Jeff Bellinger, and let's say it is unlikely be of a sidestep the industry wide drop in investment banking revenue, but there is uncertainty over just how much the company's profit margins on loans were boosted by the fed's aggressive series of infest rate hyps. Bloomberg Intelligences, Bank of America likely benefited from CEO Brian moynihan strategy of

pursuing responsible organic gains. Lost provisions are seen as the biggest factor for next year. Jeff Bellinger, Bloomberg Day Break. All right, Jeff, thank you and We'll talk earnings to the Bank of America's CEO Brian moynihan later this afternoon. Catch that interview at two thirty pm Wall Street Time on Bloomberg Radio and Television. I meantime, Karen, looks like a shake ups coming at Goldman, Sachs. We're getting word of a third major reorganization in just four years under

CEO David Solomon. Bloomberg's Lisa Matteo reports. Sources say the Wall Street giant plans to once again combine its expanded asset management and private wealth business into one unit. Goldman will also fuse its investment banking and trading operations under one group, and the money losing consumer unit will be broken up. The moves mark a reversal for Salmon, who had forged ahead with plans to separate the asset management and wealth business two years ago despite skepticism within the bank.

He was also reluctant to combine investment banking and trading into one group, as the firm looked to talk up other fee based businesses to win over shareholders. Most visibly, he's disbanding the direct to consumer efforts, cutting short the retail banking dreams that he had spelled out in his early days as CEO. Lisa Mateo Bloomberg Daybreak. At least at thanks that it's not just banks that are looking at restructuring this morning, we could see a re shuffle

and geopolitics as well. There's where the wine House is giving a security relationship with Saudi Arabia a second look. Let we get the story from Bloomberg's and Baxter. The two have been bumping heads over a number of issues over the past few years. The latest that increase in oil production. So not White House National Security Advisor Jake

Sullivan says things have to move, but with caution. This is a relationship that got built over decades on a bipartisan basis, and so the President isn't going to act precipitously. He's gonna act methodically, strategically and have time to meet with members of Congress in San Francisco. I'm at Baxter Bloomberg Daybreak. Thanks at S and P. Futures right now are up thirty three points. Staff futures up twenty seven Nastic futures are hired by a hundred twenty one points.

Ten Your treasury is up fifteen thirty seconds yield on the benchmark three point nine, straight ahead, your latest local headlines, and a check of sports. This is Bloomberg and it's now five oh seven on Wall Street. Word fifty eight degrees in Central Park out of crash northbound Garden State Parkway, Exit one thirty 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. More potential legal trouble for former President Donald Trump. The SEC and federal prosecutors in New York I said to be investigating whistle blower claims by a co founder that Trump Media violated federal securities law. The Trump Media says that whistle blower's account is rife with knowingly false and defamatory statements and other goodn't con the cycle dramas. Meanwhile, the Trump organization is about stand trial for tax evasion.

The Attorney General in New York has accused the company of fraud. Explosive latent suicide drones have struck Ukraine's capital as families were preparing to start their week, the blast echoing across keev and sending people scurrying to shelters. Kiev's mayor says the strikes are damaging several apartment blocks and set fire to a non residential building. Mire Itali Klitchko says though Ukrainians are not giving up, the people is very good motivated, and that's why I'm more than sure

we win this war. Because it's our home, it's our families, it's our of fusion. We ready to die for them. Mere Klitchko told of Vladimir Putin, it's a crazy idea to rebuild the U s SR and see Ukraine as part of the big Russian Empire. It's an illusion. A suspect in a North California serial killing spree that claimed the lives of six men will be a rain tomorrow. Police say tips from residents in Stockton and Oakland, where

the men were murdered, help them identify the suspect. Police arrested forty three year old Wesley Brownly in Stockton as he was reportedly driving around at night looking for another victim. Could we one day have a vaccine for cancer? Dr OSLM. Tressey, one half of the German team working on a cancer vaccine, says she is consciously optimistic as scientists. We are always hesitant to say we will have a cure for cancer. We have a number of breakfoods and we will continue

to work on them. Still, she tells the BBC, progress is being made every day, every step every patient we treat in all cancer fire its helps us to find out law. Dr Tressey adds a cancer vaccine could be available by the end of the decade. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven journalist analysts in more than countries. Michael Barr, this is Bloomberg Nather. Thank you, Michael. Coming

up to five ten on Wall Street. Time for the Bloomberg Sports Uptake and Morning John tesh Ower, Good morning eight and Yankees right back in Cleveland the night after blowing a two run ninth inning leave for the first time in their postseason history, and again they led by two bottom of the ninth no issues, this time of four to Game four victory of the Guardians that times the series of two sets the stage for a decisive

Game five tonight at the Stadium. Yankee heroes, certainly. Garrett Cole pitched like an ace with seven strong innings and Harrison Bader continues to hit home runs like Aaron Judge his third and four games. Yankee fans wondered why Clay Holmes didn't pitch Saturday. He did pitch the eighth inning. Last night, Wandy per Alta pitched the ninth the winner. Tonight plays Houston, the Alcs third straight week where both the Jets and Giants won. The Jets with an upset win.

They've yet to be favored in the game this season, but three big second half plays carried them at Green Bay. At Brexton BARRIOSRTT run, a block punt was returned for a score, and then the Jets put the game away. Zach Wilson takes the snap counter hand off up the thirty light touchdown, a little countering side hand off to Freee Hall. We'll find some Jet fans in the crowd and does the Jets lambo? Yes, and not only a Lambeaux eight, but Sauce Gardner was wearing a cheese head.

After they beat the Packers twenty seven to ten, Jets for four and two Giants or five and one another big comeback it MetLife. They trailed Baltimore by ten just over six minutes left down the stracks, two touchdowns, two force turnovers, and the Giants beat the Ravens twenty four to twenty. NFC E Showdown last night Philadelphia went to

six and oh beat Dallas twenty six to seventeen. John Stashward, Bloomberg Sports, NACOLN, Thank you, john S and p. Futures up thirty three points right now down futures have two under twenty six nest At futures are highed by a hundred twenty one points ten. Your treasuries up fifteen thirty seconds. You'll three point nine five percent. We get this trading. We started on a busy week for earnings. Next with Lori Calvacina at RBC Bloomberg day Break brought to you

by the New York Community Trust. Your name will live on as a champion of the causes you care about for years to come through a charitable request to the New York Community Trust. Learn more at Philanthropists dot NYC. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business Outland at Bloomberg Quick Takes a Bloomberg Business Lash and I'm Cameron Moscow and us Dock indise futures are on the rise this morning.

The pound meanwhile is rallying and UK bonds surging himid expectations that more of our Prime Minister list Trust's package of unfunded tax cuts will be reversed. And we checked the markets every fifteen minutes throughout the trading day. On Bloomberg Guess and P futures they're up thirty five points now futures up two forty two and nas deack futures up one hundred twenty nine. The decks in Germany is up a third of upper cent ten year treasury of

fifteen thirty seconds. Heel three point nine five percent yield on the two year four point four four percent. Nine x heard oil is down two tents of a percent on eighteen cents at eighty five dollars, forty three cents of barrel comics gold up seven tenths per cent or

eleven dollars ninety cents at sixteen sixty eighty announced. The Europe point nine seven five one against the dollar, British pound one point one to eight two and again one forty eight point six nine, and looking at bitcoin it is down a quarter percent and nineteen thousand two hundred eighty dollars. Today, we do get a report on Empire Manufacturing at eight thirty Wall Street Time and Bank of America and Charles schwab Her among company scheduled to report

earnings today. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning, Karen. Ukraine's capital was under a missile attack from Russia with so called suicide drones this morning. Several loud explosions rocked Kiev Russians ranks over the past week. If hit infrastructure, including power facilities. The late polls shows control of the House is likely to flip to Republicans

with election day less than a month away. The current CBS News You Go polling projection shows that Republicans would get two hundred twenty four to two hundred eleven in an advantage in the House over Democrats. In baseball, the deciding Game five is tonight between the Yankees and the Guardians and their a lds. Yesterday, New York survived beating

Cleveland for two in Game four. In the NFL, the Giants beat Ravens, the Jets beat the packers, The Patriots won forty nine News lost, Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan. All right, Michael, thanks for coming up to five twenty on Wall Street Life from the Bloomberg Interactive Broker Studios.

This is Bloomberg Daybreak. And Lori Calvasinis here of this now to get this trading week started ahead of US Equity Strategy at RBC Capital Markets. Laurie, it's great as always to speak with you, and I know we're early in this earning season, but given the results we've seen so far, is it sort of shaking out the way you expected or have you gotten any surprises? How do you look at earnings right now? Well, thanks for having me as always, and you know it's great to finally,

you know, have this reporting season started. I think it's been well anticipated by investors for quite some time, though not in a good way. And I would say last week, you know, as we read through the transcripts, I wouldn't say there are any big surprises on my end, except perhaps maybe that we're just hearing a lot of the same things that we've heard in the past. So I would say, on the positive side, we are hearing commentary

about supply chains getting a bit better. I think the tone of labor is improving though that frankly, that is something on both of those weeks been hearing for the last couple quarters. Um, it seems to me that companies are kind of battening down the hatches, getting cautious. Um. But at the same time we had companies saying you, no, look, we really aren't seen major crack yet except in certain

co horse of consumers. So I think to the extent that the equity community wants the earnings band aid risked off in a big way, last week's reporters didn't tell me we're going to get it just yet. We might have to wait a little bit longer, alright. So, given the futures bounce we're seeing this morning, and perhaps some of the trepidation around earnings perhaps priced into heading into this earning season, are you looking for a little bit more of a bounce for equities or what's the path

forward for you? So what I'll say on earnings. Is that even though we think that the need to reduce forecast is going to be ahead wind for the market well into next year, it is possible, if you go back over history, for stocks to bottom before earnings estimate revisions are fully you know, kind of reconciled or are fully ratcheted down. In fact, that's not something that can happen.

That is something that normally happens, and we normally see that bottoming and stalks about three to six months before the earnings numbers stopped coming down. I think maybe in the near term, Nathan, when I'm a little more interested in something you guys lad with which is just a mid term elections is around the time of year that we would typically see the market kind of bottom and

rally in a midterm election year. And on average and you know, kind of the final few months of a midterm year, you get a rally about seven percent in the stock market. Um, And I do think things are starting to maybe turn back in the Republicans direction a bit. We have seen momentum earlier and you know, kind of late in the summer shifting for the Democrats. I feel like maybe that's starting to turn again based on some

of the data we're seeing. Yeah, I know you have been thinking about the midterm election as sort of a catalyst for stocks going forward. Here, what's the potential perhaps for a surprise in uh in the political aspect of this potentially affecting investors. So look, I think that you know, there's been sort of expectations slash hope maybe you know, kind of moderated hope that Republicans would take back control of at least one chamber, and it looks like that

consensus is starting to get solidified again. I think the big negative surprise for markets would be Democrats managing to hang on to both chambers, and I don't think that's what the polling data is suggesting right now. I think, you know, what we're seeing is the Senate looks like that's where the Democrats have a bigger chance of keeping control um the House. You know, the CBS News poll you know, mentioned that things are trending back in favor

of the Republicans there. But I think, you know, I do think it would be a negative reaction in the market if the Democrats managed to keep both What about the FED impact here? We keep hearing the possibility of more jumbo sized rate hikes. We got that hotter than expected inflation data. How does the FED factor into your forecast? Well, look, it's it's interesting. I mean we've got you know, sort of consensus expectations for additional big hikes, you know between

now and early next year. We've got that big intour earnings model. We've got that big entire valuation model. Um. You know, I think it's still continues to be on the FED. What kind of recession do we end up having? I think a short, shallow recession is pretty darn close to bake. Then thirty and one is a twenty seven percent draw down from the January peak, which is a

media and recession draw down. UM. So I think as long as you can convince yourself that the economic damage isn't going to be more than that, it's reasonable for stocks to search for a bottom in here. But I think the interesting wrinkle with the mid terms with this, Nathan, which is that, um, as long as inflation is a problem, that is something that I think is friendly to the Republicans because it keeps economic issues into the forefront, which

Republicans traditionally pulled better on. So, in an indirect way, hotter inflation in the short term is probably, you know, good for the market in an indirect way because it does keep sort of the market family outcome in the mid terms on the table. As always, LORI, great to get your thoughts. Thanks again for being with us. Lori Calvacina, head of US Equity Strategy at RBC Capital Markets. Futures

right now pointing higher. SMP futures are up thirty four points, STOW futures up tune or thirty two NASDAC Future is leading the games this morning. They're up a hundred twenty six points. That's a gain of one point two percent. The tenure Treasury is up sixteen thirty seconds, yield three point nine five percent. The yield on the two year right now four point four four percent. Look at at i'm excrude, it's down two tenths percent at eighty five

forty three cents a barrel. You're listening to Bomberg Daybreak. Bloomberg Daybreak brought to you by Pepack Private Wealth Management. Peapack Private Wealth Management knows that the portfolio is more than a collection of assets, that's a path to your future.

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It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow. We're just about four hours away from the open of US trading. Let's yet you have to date on the news you need to know at this shower in your up The pound in UK bonds are rallying. That's due to expectations that Prime Minister Liz Trust's package of unfunded tax cuts may be reversed. Newly appointed UK Chancellor Jeremy Hunt makes an announcement about half an hour from now. After that, he speaks in

the House of Commons. Bloomberg's Lizzie Burden has more were expecting when Hunt makes his statement in the Commons today to give us a little more detail on how they're going to balance the books because Trust and Omics is being dismantled piece by piece, and Peace behind the scenes are asking themselves what's the point of having her at the top, And Bloomberg's Lizzie Burden says MP's are considering

whether Trust's days as Prime Minister could be numbered. Meantime, in Asia, Karen Chinese President she Jin Pink says he'll stay the course as China faces growing challenges from the US.

In a speech drop in the Communist Party Congress, she touted his economic and COVID policies and address Taiwan independence following several visits to the island from US leaders, we have resolutely fortunate inst separatism and counter interference demonstrate our resolve and the ability to safeguard China's suffeignty and territorial

intepret opos. Taiwan Independence President jij And Ping, speaking through an interpreter, also pledged Beijing will prevail and its tech battle with the U S over computer chips well on Well Street today, Nathan, US futures are bouncing back from Friday Sella. FED policy remains in focus after last week's hot inflation rating. St. Louis FED President Jim Bullard says a seventy five basis point rate hike at each of the next two f O MC meetings as possible, and

that forward guidance will be critical for limiting volatility. We've got the repricing dynamic going on. We are asking all of you to um take into account the higher rates that have to come, take into account that we're going to have to get inflation down in the US and get that repricing to occur in as orderly a fashion as possible. St. Louis FED President Jim Bullard made the comments over the weekend at the annual meeting of the I m F and World Bank. On the earnings front,

Karen Bank of America reports this morning. After that, stay tuned for an interview Bank of America CEO Brian moynihan. He sits down with Bloomberg Radio and Television at two thirty pm Wall Street time, and an organizational shake up is coming to Goldman Sachs Nathan. The banks expected to combine its asset management and private wealth business into one unit. It will also fuse his investment banking and trading operations.

S andp futures up about forty points this morning down features up two hundred seventy six, nastag futures of one forty two, straight ahead, your latest local headlines, plus a check of sports. This is Bloomberg. Thanks on Wall Street fifty gree Central Park still got that crash northbound Garden State bigs at one thirty nine, and Michael Bars here with more on what's going on in New York and

around the world. Michael, thank you very much. Nathan. More potential legal trouble for Donald Trump, it said the SEC and federal prosecutors in New York are investigating whistle blower claims. Federal regulators are pouring over a complaint by a former executive at Truth Social's parent company, alleging Trump Media and Technology group violated securities laws. Several loud explosions rocked the

city of Kiev in Ukraine early today. The head of the Ukrainian President's office says Kiev was struck by Russia with Iranian drones. In the last few weeks. Russia has been attacking critical civilian infrastructure. Ambassador of Ukraine to the U s Oxana Markarova two thirty five days no limits and no moral restrictions from from Russian aggressor. So we should be prepared for every since and it's actually irrelevant at this point what he says, because this partial mobilization

has been a big failure. Ambassador marcar Rova spoke on CBS has faced the nation, which can be heard Sundays on Bloomberg. It is debate night in Georgia. In the gubernatorial race. Incumbent Republican Brian Kemp will debate Democratic challengers Stacy Abrahams and libertarian Shane Hazel. A new poll shows have any one percent of voters on both sides. I think the future of the country is at stake when

they vote in November's mid term elections. That's according to a new poll from the Associated Press and ORC Center for Public Affairs Research. As we head into Thanksgiving and winter, health officials are warning of another COVID search. Dr John Brownstein says the emergence of omicron sub variants and the slow uptake of the new COVID boosters could create a

new wave of infections. Well we know is this virus continues to evolve and develops mutations that are selected for because they can get around immunity immunity either through infection or immunity through the vaccines. We just don't know the extent at which these sub variants will be able to get around. Dr Brownstein spoke to ABC Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyst

and more than a hundred twenty countries. Michael Barr, this is Bloomberg Na. Michael, thanks on Wall Street time for the Bloombridge Sports update, which on Stash. All right, thanks Nathan, Yankees and Guardians. Game five tonight at the stadium. The winner goes they used him, the loser goes home. Jamison Tyone will start for the yankst lost Game two of the series and relief but as the starter Dione led the Yanks and wins this year. They may use Nestor

Tortez and relief. Guardians are going with a pretty much bullpen game. Yanks stayed alive in Cleveland and four to winning Game four. Garrett Cole went seven inns and Harrison Bader hit his third home run in four games, two run. Sean Vader then looked ahead to tonight, there's a game being played. We feel as they were in driver sive um and that's how we remained dangerous um. I don't think we want it any other way to return back

to the bronx um. So yeah, I mean, we're just excited about the energy that we got moving forward and listen to Marrows a new day. We're gonna go out there and play our player best baseball tellers too. Aaron Brudens shook up his lineup it last night played a Waldo Cabrera at short stops that he'll do that again tonight. The Giants four and thirteen last year and I've and won this season third time where they came back from

a double digit defensit. They telled Baltimore by ten with just over six minutes left and rallied to win to twenty. Daniel Jones two TV passes se Juan Bartlins for the game winner, set up by the Giants first interception of the season. They sealed the win forcing to Lamar Jackson fumble. The next four games with the Giants very winnable. The

Jets at four and two. They've also won three in a row at twenty seven to ten upset win at Green Base of the Packers last two weeks with rosses to the two New York teams Jets at three and oh on the road. The Big a FC game won by Buffalo Store with a minute left to win at Kansas City and the NFC each showdown last night won by still unbeaten Philadelphia seventeen over Dallas. John stas Bloomberg Sports Nap Thanks John seven on Wall Street Time for

the Tri State Business Report with Bloomberg's Joan Donnaker. New York or Nowhere is opening a permanent store in the heart of Nohol, the street where brands started during the pandemic became so popular, according to Women's Where Daily, a pop up store It's set up last year drew a crowd that waited in line for two hours on some days for a chance to buy the brands hoodies, t shirts,

and sweatpants. A different sort of preview in Times Square for Taylor Swift, her new album deb used Friday last night, Rolling Stones as a huge Spotify billboard in Times Square revealed a line of lyrics from the album Midnight's Spotify tease to second reveal on Instagram. Inflation is a huge problem, but in some places it's a lot worse than in others.

Wallet Hub found the greatest increase in the consumer price index over the past year has been in the Phoenix area, but New York, Newark, and Jersey City ranks on its list the increase in inflation in the past year coming to six point two percent. That's the Bloomberg Tri State Business Report on Joan Donneger. Thanks jo 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 Steve Potis on ten ten Wins in New York. We're talking about streetwear seller New York Are Nowhere opening its first permanent flagship store, um Corney Donahoe on w h S and Louisville Progress pitching to regulator Sederal lower prices if they approved the deal to by Albertson's. I'm Stephen Carol and Bloomberg d a B Digital Radio in London.

We've been reporting on the rally and guilts as the Chancellor brings forward the announcement to some of the SPASCO measures. I'm Genus Servetti in for wfl A in Orlando. I'm talking about research showing that tourist tables like Orlando are seeing more revenue from taxes on hotel stays than their counterparts that rely on business focus travel. Those are some of the stories our twenty hundred Bloomberg journalists and analysts are working on this morning around the world. It's five

thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. If the Federal Reserve was hoping for some sign that inflation is subsiding, it was cruelly disabused by the latest figures for consumer prices. The headline rate fell slightly in September, from eight point three percent to eight point two percent, but the more telling measure of core inflation reached the highest rate in forty years. The message

was clear. Far from relaxing its recent pace of monetary tightening, the Fed might have to raise interest rates faster than expected. It's tempting to think that, having fallen behind the curve at the outset, the Fed should now surprise investors in the other direction by announcing an unexpectedly aggressive tightening. But this approach would all but guarantee a recession um one that could quickly turn nasty. That makes the Fed's preference

for gradualism understandable and for the moment wise. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash open in or opie I n go on the Bloomberg terminal. These has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at ope I n go. Futures moving higher this morning.

You're listening to Bloomberg Daybreak Bloomberg eleven three oh Weather mostly cloudy today, chance for a few showers with highs in the upper sixties. It will turn mostly sunny and cooler tomorrow. Highs your fifty five degrees tomorrow and Wednesday. 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 Dictate. He's a Bloomberg Business Lash and I'm Cameron Moscow and the pound is rallying, UK bond surging him at expectations at Moura, Prime Minister list Trust's package of unfunded tax cuts will be reversed. Stocks are rising. US stock index futures are as well. Investors are preparing for a number of key earnings reports this week, and we check the markets every

fifteen minutes throughout the trading day. On bloomberg S and P futures at forty points now futures up two hundred seventy nine and NASTAG futures have a hundred forty. The decks in Germany's up sixtensive up percent. The ten year treasury is up eighteen thirty seconds. You have three point nine four percent, and they yield on the two year

four point four three percent. Nine. Mex Hered oil is up tenth of a percent of ten cents at eighty five dollars seventy one cents a barrel called Mexs gold there is up eight ten percent, or thirteen dollars seventy cents at sixteen sixty two forty announced. The euro point nine seven five one against the dollar, the N one forty eight point six seven and that's a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on

around the world. Michael Karen, thank you very much. More Russian attacks on Ukraine's capitol. Officials that he was hit this morning by a wave of Kama Kazi drones, damaging residential buildings and kill at least one person in around A deadly fire and gunfire erupted inside Tehron's notorious Evan prison over the weekend. Four people died from smoke inhalation, according to officials, in more than sixty injured. The compound is holding hundreds of anti government protesters arrested in a run.

In baseball, the deciding Game five is tonight between the Yankees and the Guardians in their A L d yes Yesterday, New York survived beating Cleveland four two in Game four. In the NFL, the Giants beat the Ravens, the Jets one, the Patriots one, and the forty Niners lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries, him Michael Barr

and This is Bloomberg. Nathan, Okay, Michael. Thanks, It's just about five forty nine on Wall Street. Live from the Bloomberg Interactive Broker studios. This is Bloomberg Daybreak and we get more bank earnings this morning. The parade continues with Bank of America opening it's third quarterbooks before the opening bell this morning in Bloomberg Global Finance correspondent Shanali Bassik is back with us this morning to preview those results. Shanali,

good morning. The story we have gotten so far from the four banks we've heard from is the consumers holding up even if investment banking and some of those other aspects of the banking industry are struggling. If that story holds up for Bank of America, we could see some pretty decent numbers today. We could. It depends you. It's interesting thing here is Brian morning, and the CEO Bank of America has said consistently that the consumer is holding up.

The question is does he share the same views as Jamie Diamond where who believes that next year will be much harder for the consumer and that the excess balance sheet that the consumer has will start to dry up into the middle of next year. The other thing about Bank of America is can it show that net interest income is coming in above expectations this year? Because JP Morgan raised their projections by more than three billion dollars

for the year in net interest income. Now, can both of those banks keep this up in the face of a tougher economic environment. Will also be looking for provisions for loan losses at Bank of America and any sense

of whether they think any credit quality is deteriorating. Yeah, thinking of the net interest income story, I'm sort of wondering whether we're going to see any movement in terms of these higher interest rates that are working their way through the economy now are going to translate into higher interest rates for depositors, and what that could mean for n I I. It's truly a hot button issue. Lawmakers

were asking about it. The banker said that all the banks where they testified in Washington a couple of weeks ago, have said that they will eventually raise savings rates for depositors. But you heard what Jamie Diamond and JP Morgan had to say last week, and the reality is is that they won't do it until they competitively have to do so. So, yes, there's a lag in interest rate rises from when you see the federal reserve hikes to what you're seeing in

the banking system. But there can be even more of an overhang depending on how competitive that business gets. Now, even before we hear from Goldman Sacks tomorrow, we're getting some more fleshed out reporting on what Bloomberg has been looking at about what looks like another major restructuring coming under CEO David Solomon. What is going on here, It's truly a moment. This is a way for Goldman Sachs to really turn up the heat on its businesses, ask

for performance again at a tough time. And remember this causes a lot of anxieties for a lot of folks because there's a lot of head count management changes that happen as a result of these reorganizations. It's the second major reorganization under David Solomon. He announced very large plans and many of those plans have been coming to fruition.

But there's a lot of existential questions around that consumer business, the role it plays inside of Goldman Sacks, which still generates often more than fifty percent of its net revenue from investment, banking and trading operations. Which have absolutely blown through the roof the last couple of years. So what does the consumer banking division mean? The asset manager and private wealth businesses are going to be recombined again under

Mark Knockman, whose star has just been rising. At Goldman Sachs rent every major business line under David Solomon, and now we'll be running another large part of the firm that has the potential to highlight itself in a bigger way. And of course you're gonna be talking a lot more about Goldman Sachs when they report their earnings tomorrow. The story this morning Bank of America, those results coming in before the opening bell, Bloombridge. Shinali Bassik as always, thanks

for steering us through bank earnings. Really appreciated. Karen Nathan, thank you a five fifty two on Wall Street time for our Bloomberg Law Report. It has brought to you by American Arbitration Association. Business disputes are inevitable resolve fester with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a dr

dot org. Let's get to the legal stories we are watching this morning from Bloomberg's Jeff Bellinger the Department of Health and Human Services as Medicare open enrollment has begun

and will remain open through December seven. Internal Revenue Service officials say the agency has attendant to deadline for the end of the year to complete most regulatory work implementing workplace retirement Plan changes, a divided federal court rule that a Kroger subsidiary must arbitrate a union's claim that it represents workers at a warehouse that handles orders from Walgreen's Pharmacy's. Bloomberg Law everything you need, all on one legal research platform,

including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg Law dot com. All right, Jeff, Thanks, Now, another legal story we're watching. Rodney Read has been on death row in Texas for more than two decades. His case has gotten attention from celebrities like Kim Kardashian and Beyonce since new evidence has come to light, but Reid has been unable to get the State of Texas to test the murder weapon for d n A and his

murder case. Now as leygal fight is at the Supreme Court, the justices will decide whether Reid gets the d n A testing in in case that focuses only on whether he filed this federal claim too late and for more of Bloomberg's during Grosso speaks to Bloomberg laws Jordan Reuben. So this is a federal civil rights claim, that's right. So what happened is this in trying to get DNA testing, Rodney read pursued that claim in the state court, but that claim was denied at the trial court level and

then up through the state criminal appeals court. And so after that denial, Rodney Reid then filed a federal civil rights claim challenging the denial on the state level, saying that those state processes violated his due process. And so that's the crux of his federal claim. The problem is that textas is saying that he waited too long to

bring the claim. So the question at the Supreme Court is when the statute of limitation starts to run for a federal claim that state DNA testing procedures violated due process. Does it start to run when the state trial court denies testing, or does it start to run when the state appeals process has played out? And so it's this

very technical sort of question. Was there any talk at all during the oral arguments about the fact that he claims he's innocent and the DNA test could possibly clear him. It's hard to see why you wouldn't give someone a DNA test, right, So, in terms of kind of the reality of the case, that wasn't the subject of the arguments,

and that's often the case at the Surreme Court. Nonetheless, Threads lawyers certainly didn't mention the innocence aspect during the argument, But there wasn't really this straight up question posed to Texas of why don't you just do the test us thing? They're really focused for on the technical issue, as is often the case at the court. Could you read where the jauntices were on this issue at all? I definitely

saw justices on both sides of the issue. For example, Justice Thomas seems the most likely to vote with the state. His question to both sides was the same, which was what liberty interest was read even deprived of in the first instance, and who deprived him of it? But he was kind of on his own with that. Most of the justices were more so grappling with the crux of

the issue that was presented in the case. But I really didn't get a sense that there was a majority coalescing around any particular answer to this question, at least at the argument. So it's another one of these where we're going to have to wait and see. I do think that Read has a shot, although you really never know at the court because the Court has been very

skeptical of claims coming from death row. So even though there was some support Read at the argument, including from Justice that it that would only get him potentially to four justices when he would need five. I think that that's possible in the case, but we just won't know until we have the decision. And as Bloomberg Laws Jordan

and Ruben speaking at the Bloomberg Joan Grasso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law Podcast or downloading this 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. SNP Future is up forty one points this morning. Dal Future is of two hundred eighty four and nasday Futures

a one hundred thirty nine. Still ahead on Bloomberg Daybreak and check on the business headlines and all the news you need to start your day. And this is Bloomberg.