Bloomberg Daybreak: October 17, 2022 - Hour 2 (Radio)

attack from Russia today. I like the bar More ahead, I'm John Stairs showering sports. The Yankees stayed alive with a wooden cleave with the decisive Game five is tonight. The winds continue for the Jets and Giants. That's all Trading ahead on Bloomberg day Break on Bloomberg Eleveing Free on New York, Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco

Sirius XM 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 being Why 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 US futures are higher this morning se so one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg Guess and p Future

is at forty one points down. Future is up two D eighty two and nonsday futures up one D thirty six and a ten year treasury up seventeen thirty seconds yea three point nine four percent. They yield on the two year four point four four percent. Nathan Karen, We begin in Europe. The pound and UK bonds have been rallying on expectations more of Prime Minister Liz Trust's package of unfunded tax cuts may be reversed. Newly appointed Chancellor Jeremy Hunt makes a statement later this hour. We get

more from Bloomberg Lizzie Burden in London. It does seem like Jeremy Hun is peace by turning pastonomics into unacconomics. He's excited to bring forward more fisfal U turned in order to calm the market stasicality to pasonomics being solved the parts and exchange the market stability. Bloomberg's Lizzie Burton says, after Hunt's addressed this morning, he'll make remarks to the House of Comments in Asia. Nathan, it's all about China

this morning. President she Juan Pain said he's staying the course is the country faces what he calls dangerous storms and growing challenges from the US. In an almost two hours speech to open a Communist Party congress, she said China will pursue development while ensuring national security. We have worked with firm resolve to stay for national security, stended off and diffused the major risks, and enshort social stability. We have devoted great energy to modernizing our national defense.

President jan Pain, speaking through an interpreter, also pledge beij Jing will prevail and its tech battle with the US over computer chips come back here in the US. Karen Futures are rising to start the week. It follows another sell off on Friday, when the SNP five 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, we're down over in equity 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, but Nathan, we could see a rally in stocks as according to Morgan Stanley, longtime equity bear Mike Wilson, he says stocks are right for a short term morally and the absence of earnings capitulation or an official recession. Wilson says slump in the SNP five hundred this year has lefted testing a serious floor support at

its two hundred week moving average. He's not ruling out the S and P five hundred rising above forty one 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's leaving open the possibility the Central Bank raises 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 pull some proposed or thought of policy rate increases from three into the December meeting. I think that's a judgments. 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. Arnies are also a front and center

this morning. Nathan, we get results from Bank of America shortly, and here are the preview as Bloomberg's Jeff Bellinger an. 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 infrast rate hikes. 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 Bollinger, Bloomberg Day Break Right, Jeff Banks and miltalk Or an ancient 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 shakeups coming to Goldman, sachs. We're getting more of a third major reorganization in just four years

under CEO David Solomon. Bloomberg's Lisa Matoe 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, spiked 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, thank you, it's not just banks that are looking at restructuring this morning, because the every shuffle and

geopolitics as well. There's worth of White Houses giving its security relationship with Saudi Arabia a second look, and we get the story from Bloomberg, said Baxter. The two have been bumping heads over a number of issues over the past few years. The latest that decrease in oil production. So now 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 a Baxter Bloomberg Daybreak. Thanks that. SMP future is now up forty two points. Now futures up three hundred two. NASTAC futures are higher by a hundred forty two points and the tenure Treasury is up eighteen thirty seconds yield three point

nine four local headlines and a check of sports. Up next, This is Bloomberg six oh seven on Wall Street, fifty seven degrees in Central Park, out of crash northbound Connecticut Turnpike, Exit fourteen. Details 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. There's

more potential legal trouble for former President Donald Trump. The SEC and federal prosecutors in New York has said to be investigating whistle blower claims by a co founder that Trump Media violated federal securities law. The Trump Media says that the whistleblowers acality is ryan with knowingly falls and defamatory statements and other concocted cycle dramas. Meanwhile, the Trump

organization is about to 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 last echoed the cross keeps sending people scurrying to shelters. Keeves mayors as the strikes damaged several apartment blocks. Mayor Vitality Kliko says

today strike was a terror attack Russians. They destroyed all country, they destroyed hometown, They killed seas Right now, Mayor Klitchko says, the Russians need Ukraine without Ukrainians and that's why they killed civilian people. A suspect in a North California serial killing spree that claimed the lives of six men will be a ragin tomorrow. Police they tips from residents in Stockton and Oakland, where the men were murdered, helped them

identify the suspect. Police arrested forty three year old Wesley Brown Lee and Stockton as he was reportedly driving around at night looking for another victim. Could we one day have a vaccine for cancer? Dr Oslin Terse, one half of the German team looking on a cancer vaccine, says she is constiously optimistic. As scientists, we are always hesitant to say we will have a que for cancer. We have a number of breakfuls and we will continue to

work on them. Still, she tells the BBC. Progress is being made every day, every step of every patient we treat in all our cancer triots helps us to find out law. Dr Tresse 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 journalist and analysts more than a dwenty countries. Michael Barr and this is Bloomberg, Nathan, Thank you, Michael six O nine on Wall Street. Time for the

Bloomberg Sports Update. Here's Jon stash Ower. All right, Nathan. Yankees right back in Cleveland the night after blowing that two run ninth inning leave the first time in their postseason history, and again they led by two bottom the ninth, no issues, this time. A four to two Game four victory of the Guardians ties the series at two sets the stage her decisive Game five tonight at the Stadium.

Yankee heroes, certainly, Garrett Cole pitched like an eight 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 Peralta pitch the ninth winner. Tonight plays Houston in the ALCS third Grade week where both the Jets and Giants won. The Jets

with an upset whin. They've yet to be favored in a game this season, but three big second half plays carried them at Green Bay of Raxton Barrios twenty r t d run a block punt with returned for a score in the Jets put the game away that Winson takes the sneak counter hand off at the thirty touch down, a little tiltery side hand off the home some Jet fans in the crown and does a Jet lambop, not only a Lambeau leap, but later Sauce Gardner was wearing

a cheese head after they beat the Factors twenty seven to ten, Jets for four and two Giants or five and one another big comeback and MetLife. They trailed Baltimore by ten just over six minutes left down the stretch two touchdowns, two fource turnovers. The Giants beat the Ravens to twenty. NFC E showdown last night, Philadelphia went to six and oh beat Dallas to seventeen on staf that went Bloomberg Sportsco. Thank you, John Red Headlines crossing the

Bloomberg terminal. UK Chancellor of the Exchequer Jeremy Hunt releasing a statement reversing more of Prime Minister Liz Trust's economic policies, scrapping a plan to cut income taxes indefinitely and shortening a universal energy support plan until April of next year. We're gonna get reaction next. As we parsed the details of this statement. Bloomberg opinion columnist Marcus Ashworth will join us in the minutes ahead. As we watched, futures continue

to rise on Wall Street. This is Bloomberg Bloomberg eleven three oh weather, mostly cloudy, chants for a few showers today, highs in the upper sixties, mid fifties Tomorrow and Wednesday under mostly sunny skies. Right now fifty seven in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quick Tape is a Bloomberg Business Flash and I'm Karen Moscow. And futures are higher with SMP futures

at forty seven points down. Futures of three hundred thirty nasdack futures of one d fifty nine. The decks in Germany's up eight tenths of upper cent. Can your treasury u seconds you know, three point nine three percent and they yield on the two year four point four two percent nine Next, screwed oil is up four ten percent or thirty four cents at eighty five dollars n cents

a barrel called make school. That's of nine tenths per cent or fourteen dollars forty cents at sixteen sixty three twenty announced the euro point nine seven six two against the dollar. British found one point one three oh five at the N one forty eight point six four and bitcoin is a tenth of a percent in nineteen thousand, three hundred fifty dollars. That's a bloomberg business flash. Now here's Michael Barr with Moore unless going on around the world.

Michael Karen, thank you very much. Ukraine's capital was under missile attack from Russia with the so called suicide drones this morning. Several loud explosions rocked Keith. Russian strikes over the past week have hit infrastructure, including power facilities. A late Pole shows control of the House is likely to flip to Republicans with election day more than three weeks away. A CBS News You Got polling projection would give Republicans a two twenty four to two eleven advantage in the

House over Democrats. In baseball, the deciding Game five is tonight between the Yankees and the Guardians in their a lvs. Yesterday, New York survived, beating Cleveland for two in Game four. In the NFL, the Giants beat Ravens, the Jets beat the Packers ten, the Patriots won forty, Niners lost. Global News twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenties seven hundred journalists and analysts and more than a hundred twenty countries.

I'm Michael barn. This is Bloomberg Nathan. Thanks Michael. At six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we're waiting for comments from the new Chancellor of the Exchequer in the UK, Jeremy Hunt. But he has released a statement on his plans to get his country's finances in order. It's not just putting the brakes on Prime Minister Liz Trust is unfunded tax cuts, but it's a major reversal here. Let's

get more now from Bloomberg opinion columnist Marcus Ashworth. As we passed through what the new Chancellor is going to say, and we know Marcus that income tax cuts are going to be shelved indefinitely, and it looks like a universal energy support program is going to get cut off a lot sooner than Prime Minister Trust wanted. This is a

torching of the Prime Minister's fiscal plan. Well, we have an expressed in the ukake or reverse theerret um and essentially this is uh yeah, a complete unwine you turn probably doesn't even give it full justice. It's it's a scrapping of an entire vision that had been laid out throughout the leadership campaign and indeed in the first few weeks of office for his Trust. It leads you know,

there's no justification in theory for her to remain in power. UM. But other stability in a sense that no one wants a leadership election and yes another prime minister aft of four uh finance ministerism in the middle last four months, UM. But you know, some of this makes quite a bit of sense. A lot of criticism had come of the various sources of the UK's energy price capping pan was too comprehensive and not targeted sufficiently towards the most needy,

and the sense it was a blanket um program. Well that that that will carry on for this winter m baron mind, gas prices have dropped quite sharply, so sell the numbers that have been thrown around rather wildly from some think tanks and for a certain media sources have

proved to be perhaps too apocalyptic. But nonetheless, um, clearly the government couldn't couldn't really justify putting as such a huge blanket over all all energy costs, and it wasn't necessarily very good, uh, you know a sense of the planets either we need to encourage people to reduce the consumption of energy as well than just the cost of it.

So that makes some sense that that that's basically about half way, I would say, in and getting to the level where we think, um, the Office for Budget Responsibility wants to see the burther balance of the books, maybe a little bit over halfway include the corporate tax hikes in backup and some of the stuff like filling around one pencil income tax was never going to get anyone anywhere,

So I think they just accepted reality. But you know, as far as the UK is concerned, this is you know, we're back to where we were on the Ritchie sanak Um perhaps for the sunly more comprehensive and fundable budget halfway there is that enough to give confidence to investors in the UK. No, because the political situation is clearly very few brile animal remains so um until either there's

an election or indeed as trust goes. But I mean at the point here is this that at least the new Chancellor as as as has laid out is you know plans quite clearly, very quickly. He's brought things forward um and full respect will be given to the Office for Budget Responsibility. But you know, there is one notable thing about this. You know that there is going to be a recession in the UK. There's a risk prim in on top of got of UK government borrowing which

has got to be eradicated. Inflation has got to be controlled. Those two things can only mean that the economy will go into recession to to to solve both those those important things. Getting rid of that risk premium next across the borrowing and getting group on inflation will mean that the economy will turn down, and that's because there will be less government spending, a liver less tax cuts, and in some senses that you know that that will hopefully

could bring guilt yours back under control. Maybe an enable inflation has turned down quick and faster, which could mean that the interest rates will not have to ride quite as high as they might want I might have to do. But they are still gonna be rising on November three, probably by seventy five basis points, possibly are under basis points. That's the day after the Fed moves by a similar amount. So you know, there's there is more pain to come in the UK, but at least there's some some light

possibly at the other tunnel. Only thirty seconds left here in Marcus. How much pain is ahead for Liz trust oh maximum? I mean, you know, if she survives this, uh, then it will be only because her party just do not want a change right right now, and they're prepared to see it through to the election whereby almost certainly she will lose power anyway. It's the question whether or not they will prepared to go through another another leadership change.

It is quick and they replace it with something like Rishie Sanak, and it can be done very swiftly, and I think it will slappen. Thanks Marcus, good having you on with us as we wait those comments from Jeremy Hunt. But again the statement has come out. Tax cuts shelved indefinitely on the income tax side, reversing plans to slash dividend tax rates and scrap alcohol duties, and a universal energy support is going to expire in April, much sooner

than expecting. Uh. That is the plan from Jeremy Hunt. He says it will raise thirty two billion pounds going forward here and looking at the pound this morning, it's been strengthening ahead of these expected changes from the Chancellor. British pound now trading at one point one to nine three against the dollar, futures moving higher more more than

one percent to across the board. In fact, you're listening to Bloomberg daybreak Bloomberg eleven three oh Weather mostly the cloudy today, chance for a few showers with high and

the upper sixties. It will turn mostly sunny and cooler tomorrow, mid fifties tomorrow and Wednesday, right now fifty seven degrees in Central Park, broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg E Living Free on to Washington, d C, Bloomberg nine nine one to Boston, Bloomberg one O six one does San Francisco, Bloomberg NUN sixty to the country, Sirius XM CHO one nineteen and around the globe the Bloomberg Business apt 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're just about three hours away from the open of US trading. Time for the five things that you need to notice start your day. Brought to you by Interactive Brokers ib k R. Event Trader offers a new way to trade futures. Use event contract to trade your opinion on yes or no questions in KEYCME futures markets. Learn more an event trader

dot Interactive Brokers dot com. Of First, the pound in UK bonds are rallying. That's after new UK Chancellor Jeremy Hunt announced plans to scrap tax cuts indefinitely. He's making a U turn on Prime Minister list trusts economic agenda, although the Prime Minister and I are both committed to cutting corporation tax. On Friday, she listened to concerns about the mini budgets and confirmed we will not proceed with the cut corporation tax announced and Chancellor Hunt will also

speak to the House of Comments later today. We'll meantime in Asia, Karen President Chi Jin Pink says China is staying the course as it faces growing challenges from the US. At the Communist Party Congress, she touted his economic and COVID policies and address Taiwan independence. We have resolutely fort against separtism and talent interference, demonstrating our result ability to

safeguard China's soupeignty and territorial interpret apart Taiwan independence. President Ji Jin thinks, speaking through an interpreter, also pledged Beijing will prevail in its tech battle with the U S over computer chips on Well Street, Nathan, US futures are bouncing back from Friday sell off. FED policy remains in focus. St. Louis President U. St. Louis FED President Jim Bullard says a seventy five basis point hike at each of the next two meetings is possible, and that forward guide and

so 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 earning s front, Karen, Bank

of America reports this morning stick with us. Later today, we'll speak with Bank of America CEO Brian moynihan at two thirty pm Wall Street time. You can hear the full conversation on Bloomberg Radio and TV. And an organization I'll shake up is coming to Goldman sax Nathan The banks I expected to combine its asset management in private wealth business into one unit. It will also fuse its investment banking and trading operations. That's the five things that

you need to know to start your day. Brought to you by Interactive brokers, futures are higher. This morning, straight ahead, your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks Karen on Wall Street. Fifty six degrees down in Central Park. Still got that crash northbound Connecticut Turnpike, Exit fourteen. Michael Bars here 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 Donald Trump. It's said the SEC and federal prosecutors in New York are investigating whistleblower claims. Federal regulators are pouring over a complained by a former executive at truth Social's parent company, alleging Trump Media and Technology group violated securities laws. Truth Social was meant to be a post presidency business opportunity in a way for the former president to get back on social media. The head of the Ukrainian President's office says Kiva was struck by Russia with

Iranian dronesor vitality Clitico condemns today's strikes. It's here in historical center leave. In the last few weeks, Russia has been attacking critical civilian infrastructure, power supplies and electricity transmission lines. Ambassador of Ukraine to the U, s Axana Markarova, two 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 Rovis spoke on CBS has faced the nation, which can be here at Sundays on Bloomberg. It is debate night in Georgia. In the gubernatorial race. Incumbent Republican Brian Kemp will debate Democratic challenger Stacy Abrams and libertarian Shane Hazel. A new poll show voters on both sides 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 rc Center for Public Affairs Research. As we head into Thanksgiving and winter, health officials are warning of another COVID surge. Dr John Brownstein, 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 good news for the hearing impaired. Starting today over the county, hearing aids are being made available on story shelves, so the first time ever. Health officials say they will help eighty percent of Americans who have avoided getting help for their condition. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts more than a

hundred twenty countries. Michael Barr, This is Bloomberg, Nathan, Thanks Michael. Almost six thirty six on Wall Street. John stash Are has a Bloomberg Sports updated all Right, Navan. Yankees and Guardians play Game five tonight at the Stadium. Winner goes to Houston, loser goes home. Jamison Tyon will start for the Yanks. He lost Game two of this series and relieve it as a starter. Tyone lad the Yanks and

wins this season. They may use Nestra Cortis and relief, and the Guardians are going with a pretty much bulp end game. Yanks stay alive with the four to win in Game four in Cleveland, Garrett Cole went seventians and Harrison Bader hit his third home run in four games two. Runch dot in Vader then looked to head to tonight visit game lead play. He feel his own driver received and that's how he remained dangerous. UM. I don't think

we wanted 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 sen tomaws a new day. We're just gonna go out there and play our player best baseball tellers too. Boone shook up his line up a bit last night, player as Waldo Cabrera at shortstop, who said they'll do that again tonight. The Giants four and thirteen last year five and won this season third time where they've come back from a double digit deficits.

They chilled Baltimore by ten with just over six minutes left. Rallied away twenty four to twenty. Daniel Jones to TV passes sae Kwana Barkley score the game winners. Set up by the Giants first interception of the season, they sealed the win forcing a Lamar Jackson fumble of the next four games for the Giants very winnable. The Jets are four and two. They've also won three in a row about twenty seven to ten upset win at Green Bay.

So the Packers last two weeks with losses to the two New York teams of the Jets are three and all on the road. They then AFC game won by Buffalo scoring with the minute left to events last year's playoff loss at Kansas City. The NFC You Show Down last night won by Skill on Beat in Philadelphia. Set down John dashin Bloomberg Sports. All right, John, thank you. It is six thirty seven on Wall Street. Time to take a look at stocks, some of the names moving

in the pre market. Bloomberg Radio and TV Markets correspondent Cree Gupta is back with us this morning. And of course, right now the focus is on the big U turn in the UK, but in China, President Shi Jinping is staying the course. Creedy right. The Party Congress, I believe their twentieth Annual Party kron at President g reiterating economic

development is the party's top priority in his speech. This is so important because this is actually going to forge the way for him to potentially be or for his third term and unprecedented, um kind of thing to do

in China at the moment. What that's doing two stocks broadly in China and those ad rs that are reflected here is they're boosting them, David, or excuse me, at Nathan ex season, it's China, David Weston, Nathan Ali Baba is going to be a proxy here, b A b as your taker up of two percent, Pin Duo Duo, another online company up about two point eight percent at the tickers p d D and of course j D dot Com j DS your ticker up three point seven percent.

This is so important because this is coming at a time when you have in the United States a lot of manufacturing being encouraged to bring brought back online. Nathan, we've talked so much about the chip sector. UM, China doing the same thing, trying to kind of create a cushion for some of the slowdown that they're seeing in their property sector as well as their manufacturing sector, not

to mention their exports sector. So right now it kind of seems like this morning, if you are bullish on presidency, you are bullish on some of these names. Yeah, we've been talking, of course about the possibility of another restructure at Goldman Sachs. But there's also potential restructuring happening in big media. There absolutely is. Uh you know, it's interesting. Fox Core and news Core sent on Friday they were exploring options to recombine. Of course, we know that they

were for a while all part of one company. Analyst suggesting a deal is unlikely to solve evaluation problem in terms of liquidity, especially right now when there are a lot of mergers and acquisitions happening, a lot of money in the air. Nevertheless, those shares are moving quite a bit in the pre market. Fox Score for example, f o x A is your takers down two point seven

percent in the pre market. News Corps on the other hand, and w S a Nathan of about four tenths of one percent, and we've got some analysts recommendations to go through as well. We absolutely do. We gotta talk about PPG Industries up of only about two tens of one

percent this morning. But Key Bank Capital Markets, initiating coverage of the stock, they called an overweight recommendation, saying there's probably to be a sharp decline of costs in the first half of It's only a couple of months away. It kind of blows my mind a little bit, and there's saying it's going to help offset some of that

cyclical volume pressure. Whether or not that continues about the rest of the sector is a key question, but for now, lifting the shares to the tune about two tenths of one percent. As always, thanks for doing this Spoom for Gradio TV Markets correspondent Creedy Group Day keeping an eye on the individual movers in this pre market. As for stocks as a whole, they are headed higher. Some P futures up forty points down, futures up, tune to eighty four,

NASDAC futures higher by a hundred thirty seven points. Bank of America up one and a quarter percent ahead of earnings. We're gonna have those numbers for you shortly as Bloomberg Daybreak continues. You're listening to Bloomberg Radio Bloomberg eleven three oh weather, mostly cloudy, chance for a few showers. Hides in the upper sixties today, mostly sunny, cooler tomorrow, mid fifties, and we'll keep it there Wednesday as well. Fifty six

is the current temperature 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 is a Bloomberg Business Flash, and I'm Karen Moscow. The pound rallying, UK bon surging as more Prime Minister Liz Trust is unfunded.

Tax cuts were reverse. Stocks are rising with investors repairing for a number of key earning surpports this week, and those include Bank of America those earnings crossing the Bloomberg will have full details in just a moment. And we checked the markets every fifteen minutes throughout the trading day on Bloomberg with SMP futures up forty points down, futures up two hundred eighty one and as day futures have

one hundred thirty nine. The decks in Germany up six tenths of a percent, and your treasury up sixteen thirty seconds. You have three point nine five percent yield on the

two year four point four or five percent. NIMEX screwed oil is up four tens percent or thirty eight cents at eighty five dollars ninety nine cents of barrel COMEXS gold there's up three quarters of a percent or twelve dollars twenty cents at sixteen sixty one ten an ounce, the Euro point nine seven five zero against the dollar British found now at one point one two six five and the end one forty eight point eight five and Bitcoin it's up to tens of a percent at nineteen thousand,

three hundred fifty dollars. That's a bloomberg business. Fish. Now here's Michael Barr with more on what's going on around the world. Karen, thank you very much. There are more Russian attacks on Ukraine's capital. Officials say he was hit this morning by a wave of kamikaze drones, damaging residential buildings and killing at least one person in around A deadly fire and gunfire erupted inside Tehron's notorious seven prison over the weekend. Four people died from smoke inhalation, according

to officials, and more than sixty injured. The compound is holding hundreds of anti government protesters arrested in Iran. In baseball, the deciding Game five is tonight between the Yankees and the Guardians in their a LDS. Yesterday, New York survived beating Cleveland for two in Game four. In the NFL, the Giants beat the Ravens, the Jets one, the Patriots won,

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 more than a hundred twenty countries. Michael Barb, this is Bloomberg, Nathan. Thanks Michael. It's sixty nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we are continuing to watch earnings from Bank of America

across the Bloomberg terminal. And here with us to help us break them down is Alison Williams, Senior Analysts for Global Investment Banks at Bloomberg Intelligence. Alison, good morning. Some of the headlines we've seen do indicate that looks like beats all around when it comes to trading fixed income and net interest income. It does, and so I would say that these are sort of in line with the

higher expectations that we had seen set last week. Net interest income is something that I think investors were looking for some upside, and the numbers look very strong from Bank of America. So what else are you looking at in terms of that upside and the outlook going forward. So we'll probably here a little bit more on the outlook on the on the earnings call UM. But you know, the strength of the consumer is something that the bank

has highlighted. The provision, which gives us an insight into how the bank is looking at credit costs for next year came in only slightly higher than expected. UM. They did have some reserve bill, but that was very moderate, and again that would be consistent with comments from Brian moynihan that he expects that UM or he referenced his research groups um UH expectation that the recession, if it comes,

will be shallow. Yeah, we got a quote from the CEO, Brian moynihan saying strong organic client growth across businesses helped to drive revenue up by eight percent. Is that in line with expectations? A little above or below? What's what's the read? It looks like it's better. I mean, as I said that the net interest income I think is

is really UM where we're seeing the strength. I haven't seen that the loan growth numbers yet UM, but certainly that the overall numbers signaled that this is healthy UM. Fixed income trading is another area that we're watching for the banks this quarter that came in above estimates. UM equity trading weaker, which is something uh again sort of in line with expectations. And they talked about a lot of weakness in Asia, which is something that we're hearing

across the US. Bangs. Yeah, we're watching the shares climb on the earnings up two point seven percent in the pre market. We're gonna be hearing a lot more this afternoon from Bank of America's CEO Brian moynahan. He's gonna be joining Bloomberg Radio and Television two thirty pm Wall Street time, so you'll definitely want to check back in for that conversation. Alison Williams of Bloomberg Intelligence, thanks for being here to help us break down some of these earnings.

As the headlines continued across the terminal, Karen, all right, Nathan, it is six fifty one on Wall Street and we turned to news and science and technology now with the Bloomberg and j i T Stem Report. It has brought to you by New Jersey Institute of Technology and j I T makes transferring easy leverage your associate's degree into a STEM focused bachelor's Learn more at n J I, T, DOT, E, d U, slash transfer now Here's Le's making news and science, technology, engineering,

and math. The iPhone manufacturing manufacturing hub of Jung Joe locked down one of its most populated districts to tame a virus flare up. Almost one million residents of Jung Juan district were ordered to stay at home starting today except for when they need to undergo COVID testing, and non essential businesses have been shot. iPhone maker Fox Contechnology Groups plants are not located in the district that's been

locked down. Mercedes bands is broadening its battery powered line up with a sport utility vehicle that will take on Tesla's Model Y and another step toward the automaker's goal to go all electric by the end of the decade. It's the fourth model to use mercedes dedicated e V platform, and French scientists say ancient Mars may have had an environmental capability of harboring and underground world teeming with microscopic organisms.

The researchers concluded, but if they existed, these simplified life forms would have all through the atmosphere so profoundly that they triggered a Martian ice age and snuff themselves out. The study can be found in the journal Nature Astronomy. That's the Bloomberg n j I T Stem Report. Nathan,

all right, Karen, thanks six fifty three on Wall Street. Now, time to check what's going on in d C, where some of the top stories include the Biden administration defending its economic policies even with inflation at a new high. Transportation Secretary Pete Botagge was on CBSS Face the Nation. He says the president's approaches strengthened the labor market. If we hadn't rescued the economy through the American Rescue Plan, we would not have had the ten million jobs that

were created under this president. We wouldn't be seeing some of the lowest unemployment numbers in the history of the Republic. And Council of Economic Advisors Chair Cecilia Rouse told CNN the fed's higher interest rates are starting to beat back inflation, but on NBC's Meet the Press, Progressive Senator Bernie Sanders said the FED is hurting the economy. It is wrong to be saying that the way we're going to deal with inflation is by lowering wagers an increasing unemployment. Thought,

it's not what we should be doing. Also making news, the House January six Committee signaling it will enforce its subpoena a former President Donald Trump. Republican Adam Kinzinger was on ABC's This Week. We made a decision and in front of the American people, not behind closed doors, to begin the process of subpoena. And in the former president, he's required by law to come in and he can

ramble and push back all he wants. That's the requirement for congressional subpoena to come in this week, meet the press, and face the nation. Can all be heard every Sunday right here on Bloomberg Radio. For more. We are joined by Wendy Schiller, director of the Topman Center for American Politics and Policy at Brown University. Professor, it's great to

have you back with us this morning. So here we are a little more than three weeks away from the mid terms and a very difficult economic message for Democrats. I wonder what you make of it. Well, Nathan, it's exactly the way you should think about it, which is messaging. The Republicans are typically more unified mar coherent, and they on messaging, particularly for Mitchell elections, and in this case of Democrats, because they had struggled so much to get

their program enacted. I mean it took a while. They succeeded, but all those struggles sort of just cloud messaging opportunity. And Democrats are a more diverse group and they're running across the country and New Cambridge sort of really perfected the national campaign to the publican party, you gotta be on board one message, and they've been messaging on inflation

for nearly two years now. The rest of the economy, I mean, compared to those who are older, you know, these interest rates even are nothing compared to what they were, you know, in the worst possible cases of high interest rates, and unemployment was ten percent in February from February nine two nine point is do you have a memory? You realize things are not really all that bad right now. But the Republicans have been absolutely terrific at their messaging

and the Democrats have been pretty bad. But the other thing is all politics is local. Tip O'Neil, former Speaker of the House from Massachusetts. It's a it's a very important thing. The Democrats have gone an abortion national message that's gonna play in states that aren't risk of losing abortion rights, but in those states that have them securely

blue states, that's not going to help you. We have that circumstances in Rhode Island, we have a race is probably the Republican because abortion is protected and right on. So the choices for national issues the Democrats have made have been it could be the wrong choices, and they haven't been successful in talting their message on the economy. With you know, a very low unemployment rate, the last thing they'll say is that workers. You talk to anybody,

business people, they can't find workers. They can't find people who will work and stay. And that's the whole question mark. If you have a full employment situation but you're still struggling to get workers, they're gonna vote Republican in November. Only thirty seconds left here, Wendy, where does this leave the parties with just three weeks to go until this mid term election. Well, Republicans are on a roll. They're

gonna do what they're gonna do. And the key thing I've looked at is in these really detailed polls, people between the ages of forty five and sixty five are leaning heavily Republicans. That happens to be the bubble of people who vote the most the most in midterm elections. So I think that's a real warning sign the Democrats. Hope we get more time next time. Thank you for this, Wendy,

great having one with us as always. Wendy Schiller is director of the Topman Center for American Politics and Policy at Brown University. Looking ahead to the market open this morning, We've got a rally going to start off a week that is going to be very heavily dominated by earnings. Lots of companies reporting across different sectors. Right now, SMP futures are up forty four points, STOW futures up three five,

NASAC futures higher by a hundred fifty five points. Tenure Treasury is up sixteen thirty seconds, yield three point nine five. Bank of America shares continue to rally following positive earnings. On that score, Bank America shares up two point nine percent in the pre market. For Karen Moscow, I'm Nathan Hagar. This is Bloomberg