Bloomberg Daybreak: October 18, 2022 - Hour 1 (Radio)

Oh rats, I'm Michael Barr Morris. Right ahead, I'm John stashowards forth. The Yankees and Guardians were rained out. They'll play Game five at four o'clock today. The Rangers beat

the Ducks. The Chargers beat the Broncos. That's All's train ahead on Bloomberg day Break on Bloomberg e Living Free on New York, Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine Team 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 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 U S futures are higher this morning. It is five oh one on Wall Street, and we check the markets every fifteen minutes throughout the

trading day. On Bloomberg. Right now, SNP futures are up forty points, DWAL future is up two hundred sixty one and nasday futures have one four ten year treasury down five thirties seconds, the yield four point zero three percent, yield on the two year four point four six percent, and Nimax screwed oil is down six tenths of a percent Nathan Well Karen. The rise in futures follows yesterday's

powerful rally on Wall Street. The SMP five hundred game two point seven percent, while the tech heavy nasdacs surged three point four percent. David Deet's senior investment strategistic Pepack Private Wealth says it was only a matter of time for a bounce. We don't know whether we've seen the bottom in the sixecal downturn. But we do know that the conditions are primed for better returns going forward. I mean, we start with the fact that we're down twenty year

to date on the broad market. On the NaSTA, that alone should with the appetite of all bargain hunters. David Deets of Pepack Private Wealth notes the S and P closed above a key technical support level yesterday. Still, Nathan stocks have further room to fall, as according to the latest fund managers survey from Bank of America, the respondents expect stocks to bottom in the first half of next year after the FED finally pivots away from hiking rates.

Right now, according to the survey, investors have six point three percent of their portfolios in cash. That's the highest level since April of two thousand. One of participants are underweight equities in Europe. Today, Karen, we're hearing from Liz Trust, the UK Prime Minister, says she's sorry for going too far, too fast, after her new chancellor gutted most of her economic plan. We have made mistakes. I'm sorry for those mistakes, but I fixed mistakes. I've appointed a new chancellor. We

have restored economic stability and fiscal discipline. What I now want to do is go want to deliver for the public. Prime Minister List Trust made the comments in an interview with the BBC. One other note this morning, the Financial Times is reporting the Bank of England will likely delay its planned sale of government bonds on October thirty one,

but the Bank of England is refuting that report. Well back here in the US, Nathan, we wrap up earnings from the big banks today with Goldman Sachs reporting this morning and here the preview is Bloomberg's Jeff Belinger. Goldman's revenue and profit were boosted by investment games in the third quarter last year. Bloomberg Intelligence expects to hear that the numbers were lower in the just ended quarter, which saw a slide and banking fees and a stock market

performance that likely weighed on its asset management business. Investors will be interested in what executives have to say about the future. Bloomberg reported last month that Goldman was beginning the biggest round of job cuts since the start of the pandemic, and just yesterday Wells Fargo analyst Mike Mayo said Goldman is planning a major reorganization. Jeff Bullinger, Bloomberg Daybreak,

All Right, Jeff Banks. Goldman's earnings come a day after Bank of America reported its highest quarterly net interest income in at least a decade. We caught up with CEO Brian moynihan. He says, the U. S. Consumer is still spending. Their credit quality and a credit quality Bank of America in our consumer books is very strong across the board. The payment that delinquencies are much slower. They weren't pay pandemic much lower they were in any average five best

year type period. And yes they moved a little bit off the floor, but they're still much lower and they've been so Consumers are spending. They have money, they're employed, you can see the unemployment numbers, and they have good credit. Bank of America CEO Brian moynihan made the comments in an interview with Bloomberg's David Weston. Stay tuned for more

of that conversation coming shortly on Bloomberg day Break. Meantime, Nathan, we're seeing many companies try to diversify their leadership ranks, but that effort could be getting harder as women leave top tier jobs at higher rates than ever before. A report from Mackenzie and Lenan dot Org finds that for every woman who gets promoted at the director level, two women choose to leave. A lack of affordable childcare as

part of the reason. Also, a gender pay gap that had been narrowing before the pandemic is now stalling started Washington, Now, Karen, the White House is watching energy prices closely, and now we're told the Biden administrations making moves to ensure the price of gas doesn't go even higher. Amy Morris has details from our Bloomberg ninety one newsroom in Washington. Energy Department officials have been quietly meeting this week with oil

companies to let them know what to expect. Sources tell Bloomberg News officials are prepared to release up to fifteen million barrels of oil from the nation's emergency stockpile to keep prices steady. We also expect to hear plans from the Biden administration this week about how to replenish that stockpile. Also, of the administration is looking at limiting fuel exports to keep more gasoline and diesel inside the US, a more dramatic step that sources say would not happen before the

midterms in Washington. I'm maybe more as Bloomberg Daybreak. All right, Amy, thank you, and I'm the geo political stage this morning. China and Taiwan are in focus the US as Beijing could move to seize Taiwan on a much faster timeline than previously thought. Bloomberg's and Baxter has that story. Secretary of State Anthony Blincoln is responding to Shi Jumping's addressed

to the People's Congress over the weekend. B Lincoln says there's been a change in the approach over the past several years towards Taiwan, but says now China has made a fundamental decision that the status quo is no longer acceptable and that Beijing is determined to pursue reunification on a much faster timeline. Having said that, Lincoln says there's eagerness to cooperate on share interest given that she will

be serving a third term in San Francisco. I'm at Baxter Bloomberg Daybreak, Thanks, ad s andp feature is now a forty one point staff futures up two eighty Nastack futures are higher by a hundred forty six points Tenure Treasury is down six thirty seconds, yield four point zero three percent, and Nimex crude is down six tenths percent at eighty fours of barrel. Straight ahead, your latest local

headlines and a check off sports. This is Sploomberg five oh seven on Wall Street, fifty one degrees in Central Park on an accident on the way to JFK Airports southbound Van Wick at Liberty Avenue. Details coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York City announced a new policy meant to keep the streets cleaner and free of rats. With

trash bags filed on the curves at night. There are new rules on when you can take out the garbage. Sanitation to Mission of Jessica Tish, the biggest swing that you can take at cleaning up our streets is to shut down the all night, all you can eat rat buffet. I wanted be clear the rats are absolutely going to hate this announcement. Sanitation Commissioner Tish said buildings can put their trash out no earlier than ANPM and there will

be more collections. Overnight, New York City arts organizations, including the Metropolitan Opera, the New York Philharmonic, New York City Valet, and Carnegie Hall announced that they will make face masked optional beginning octobery as COVID nineteen cases continue to decline across the area. The group at it that it will continue to encourage the practice of masking and also of vaccinations,

which will remain optional as well. Georgia Governor Brian Kemp face Democratic challengers Stacy Abrams and Libertarian candidate Shane hazel Ford televised debate sponsored by the Atlanta Press Club. Abrams, speaking last night as governor, I intend to stand up for the right to vote. I will always acknowledge the outcome of elections, but I will never deny access to every voter, because that is the responsibility of every American to defend the right to vote. Kemp responded to Abraham's

accusations of voter suppression during his time as governor. I'm the person that created the online voter registration system in the state where any Georgian convert registered of twenty four hours a day, seven days a week. Abraham's lost to Kemp when they first ran against each other in the twenty eighteen race for governor. Democratic Representative Tim Ryan and Republican J. D. Vans meant for their second debate to replace the tiring O Iisle Republican Senator Rob Portman on

NBCs w F m JTV. Vans accused Ryan voting for tax increases and criticized his support for the Inflation Reduction Act. It raises taxes by twenty billion dollars on working people in this state and in this country, and then at six seven thousand, i R s agents to go after them. Ryan replied, Vance is accusing him of being a follower of how speaker Nancy Pelosi. You keep talking about Nancy Pelosi. If you want to run against Nancy Pelosi, moved back

to San Francisco and run against Nancy Pelosi. You're running against me. Poll shilled race as a tie. Global News twenty four hours a day on air and on Bloomberg Quick Take Power about more than the twenty seven hundred journalists analysts more than a twenty countries. I'm MICHAELA bar This is Bloomberg Nake. Thank you. Michael five ten on Wall Street Time for the Bloomberg Sports up taking morning

John stash Our Alright and Morney Nathren. Second time in this series where the Yankees and Guardians have been reigned out of the stadium, unlike last week when the game was called early in the afternoon. The fans were there last night, but at nine thirty they called it. So Game five is at four o'clock today, and with the day off, the Yankees are changing starting pictures. Out is Jamison Tyon in his Nestor Cortez on three days rest.

The Guardians could do likewise with Shane Bieber, he was the cy young one or two years ago, but they say they are sticking with Aaron Savale. Winner today after Houston for Game one of the Alcs tomorrow. The surprising n LCS Phillies and Padres starting tonight in San Diego, two teams who failed to win ninety games, will decide the pennant after three n l teams at won over a hundred games and Blue. The Mets were outsted weeks six, wrapped up a f C West game in l A

went over time. Chargers beat the Broncos nineteen to sixteen, third straight wins for l A denvers two and four. The Jets visit the Broncos on Sunday. Only one a f C team has a better record than the Jets. Set the Garden, Rangers and Ducks could start for the Blue Shirts, especially the man advantage stick Candling stacks it up. Let's start to that down low pro Tracker crow the bout a draft from the Stars. It was abouder Jets Seer got pro check for the first power play goal.

If time pro Checkbot chat to the great esp and Laters manager scored another power play goal. Rangers being Anaheim six to four. They're off to a three and one start. NBA season tips off tonight with a couple of games. Nixon Nets supposed kick going tomorrow, John stash Ay, Bloomberg Sports Nacol All right, John, thanks Ses and p futures right now at forty point, staff futures have two hundred seventy three. Nastatic futures are higher by one hundred forty

one points. And you're listening to Bloomberg Daybreak, Bloomberg eleven three oh weather, It's gonna be cool for the next few days. Upper fifties today, mid fifties and sunny tomorrow sunshine upper fifties on Thursday right now fifty one in Central Park Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quicktape. This is a Bloomberg Business flash and

I'm Karen Moscow. And stocks are extending a rebound amid a focus on earnings and as the UK's efforts to foster greater stability as volatile bond market lifts sentiment toward riskier assets. European stocks are stretching their games into a fourth day, while US stock index futures are advancing. This after the SNP five closed above a key technical support level yesterday. Amazon and Microsoft really major technology and internet stocks higher in early trading, and we checked the markets

every fifteen minutes throughout the trading day. On Bloomberg. Right now, SMP futures are up about forty two points, DAL future is of two hundred seventy eight and nasday futures up

one hundred fifty. The decks in Germany's up one point two percent, the ten year treasury down three thirty seconds four point zero two percent, and the yield on the two years at four point four or five percent Nimex frude oil is down half percent or forty one cents at eighty five dollars five cents of barrel, and the euro point at nine eight four nine against the dollar, the British pound one point one zero as of Bloomberg Business Flash. Now. Here's Michael Barr with more on what's

going on around the world. Michael, good morning, Good morning, Karen. Ukrainian President Zelenski says his country needs more help to defend itself from the rand rainy and made so called kamikaze drones the Russian army has been using to attack civilion infrastructure. At least eight people were killed during yesterday's strinks. A suspected serial killer in Stockton, California, scheduled to be arranged today. Authorities say forty three year old Westley Brownlee

is accused of terrorizing the community for months. In baseball, the Yankees and Guardians will play their deciding game five of their A L d yes this afternoon four pm. Rain postponed last night's game. Monday night football Chargers beat the Broncos in overtime. Nineteen sixteen. Global News twenty four hours a day on air and on Bloomberg Quicktake powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Michael Barr, and

this is Bloomberg NA. Thanks Michael. It's five nineteen on Wall Street Line from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. Bank earnings have been the theme the last few days. Yesterday, of course, Bank of America reported results that beat estimates. Now we want to hear from the man in charge of that bank, CEO, Brian moynihan. He tells us, even though spending is slowing, the consumer remains strong. Brian moynihan spoke with Bloomberg's David weston late yesterday.

Let's listen in to that conversation. Now you've said the consumer is a strong continue to be strong. I think you said ten percent up perhaps from what you saw in October. But how long can it last? You have some competitors saying by the middle of next year they're going to run out of those balance sheets. Let's step back and talk about the different ways we talk about resiliency. First is are the consumer spending? Are they doing things they had drives? The US economy, as you well know.

And so the spending for the third quarter was ten percent higher it was last year's third quarter. The spending for the first couple of weeks in October as ten percent highed it was last October for the first two weeks. Now, what we told people was you're seeing it slow just

to hair. So it was maybe four fift early in the year twelve and now ten, which is frankly, what people are trying to do is get the spending down a little bit, get the inflationary pressures down in the in the drag of the interest rates, but it's still strong and then so that's one one way to think about.

The other way to think about the consumers did have money in accounts to spend, and in the month of September the account balances were flat or slightly over where they weren't odd best, and that is multiples of where they were pre pandemic. And they continue to hold their own And you can see inside the cash flowing customers not not not making any reflection on the This is tough on certain customers others, but even customers have lower

income levels, we can send cash flowing positive. Still, rent increases could slow that down. Other things can happen, but the core thing is as of the third quarter, they continue to cash flow and they can have more money in the accounts than they did before the pandemic by multiples. And then you go to their credit quality, and a credit quality Bank of America in our consumer books is

very strong across the board. The payment that delinquencies are much lower they were pre pandemic, much lower they were in any average PI best year type period. And yes they moved a little bit off the floor, but they're still much lower they've been. So consumers are spending, they have money, they're employed, you can see the unemployment numbers,

and they have good credit. And that's good news for America, but also makes the feeds jobs suffer because they're trying to slow down this American consumer, which is a very resilient thing. But just to make sure I understand it, and obviously you can't promise what's gonna happen next year, I'm not asking you to do that, but a lot of condems are saying the reason consumer is so strong right now is because the balance sheet were so strong

coming out of the pandemic. At this point, you don't see those balance sheets really turning down as we get into next year. We don't see it yet. And so if you look back to two quarters ago when we did Darns Called, people are like, oh, the consumers getting knocked out of the game. They're spending their accounts. Six months later the money is still there. So I think

people are over anticipating future. We as our projections Canada bout Spot and the team and our research group, which is one of the best in the world, has the third quarter positive, the fourth quarter negative, the first quarter negative, the second quarter of negative, the third quarter of twenty three negative, albeit a like a one to one and a half percent GDP analyzed growth right negative growth rate.

So we're predicting a shallow economy. That's our core assumptions and embedded in that if you look at how we set our reserves, we have the assumption that we're gonna have five a half percent unemployment. I don't I'm not sure it's gonna happen, especially this quarter. We have it a five per step. But that's the conservatives. We build our balance sheet from an operating ass but if you look at the consumers, there's there's not the signs that

we see in our numbers or other people's numbers. Quite frankly, it says they're slowing down yet, or they're in stress yet, and that will have to be part of what happens in order for there to be a de procession, because if the consumers have money in this big consumer driven economy, you know, that's that's what keeps America strong. Brian, You've always taken great pride in the Bank of America research unit and how good they are. Let's assume their numbers

are exactly right. It could be better, could be worse. Exactly right, three down, quarters, five, five and a half percent unemployment. What does that do for your loan lost provisions? What kind of provisions you have to make for that? Well, inherently we're always just counting in future because the way the Cecil rules work so called, you look out for

the life alone. So you build reserves, and we built four hundred million or so this quarter, which is building that scenario, which is six to the base case, which is the average of blue chip economist an adverse case. When you blend that together, it implies those advocates have high inflation and have high unemployment in them, and you blinded together. The core what we did at the end of the third quarter has five percent uneployment for the fourth quarter of twenty two and more than like five

and a half or next year. So it's very conservative built. So your provisions will go up against that backdrop. At one point you'll start to see the other side of it emerge. And that's what it sort of happened. Back

in the penalty. We put up a lot of reserves and we took them back in once you saw that the impact of because what the administration did and what Congress did, and what the central banks did around the world, you actually mitigate the effects of the unemployment numbers that won't happen in a standard recession I would uh would expect. But on the other hand, the consumers are going in much stronger shape than they did even in in two thousand and six seven leading into the Great Financial Crisis.

And that was Bank of America CEO Brian moynihan speaking with Bloomberg's David Weston. You can catch the full conversation online at Bloomberg dot com or on the Bloomberg terminal. SFP futures right now up thirty seven points stuff futures are hired by two hundred forty eight and Nasdaq futures on the rise by one thirty nine points. Tend your treasuries down to thirty seconds now the yield of four

zero two. This is Bloomberg Bloomberg eleven three oh weather clearing, cooler today, upper fifties for highs, sunny, mid fifties Tomorrow, sunshine into Thursday, with highs back in the upper fifties too, Around sixty degrees right now fifty one in Central Park. Broadcasting live from the Bloomberg Interactive Broker Studio in New York.

Bloomberg E loving freedome to Washington, d C. Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg N sixty to the country, Sirius XM to A one nine, and around the globe the Bloomberg business in Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Speak. Good morning, I'm Nathan Hager and I'm Kared Moscow, just about four hours away from the open of US trading. Let's get you up to date on the news you

need to know at this shower. US futures are rising at her. Ending to yesterday's big rally, The SMP posted a gain of two and a half percent in Monday's session, while the nastack rows three point four percent. Still expect more volatility ahead, that's according to Samir Samana with Wells Fargo. But what I'd really like to see is for this market to try and find kind of a bottom and from that standpoint, just maybe even trade sideways for a few days. I think these, you know, constitute to three

percent up and down days. I think a continue to spook investors. I think maybe the best course of action for for markets from here, given what the FEDS trying to engineers, just to go sideways for a few days. Well S Fargo Samir Simana says daily swains have two to three indicate fragility in the market overseas. Karen, the UK Government's trying to continue calming markets after a tough first month for Liz Trust, The new Prime Minister tells the BBC she is sorry for going too far, too

fast on her economic plan. We have made mistakes. I'm sorry for those mistakes, but I've fixed the mistakes. I've appointed a new chancellor. We have restored economics to the see in fiscal discipline. Well I now want to do? Is guy wanted to deliver for the public? Let Trust tells the BBC she plans to keep serving as Prime Minister. One other note, The Financial Times is reporting the Bank of England will likely delay its planned sale of government bonds on October thirty one, but the b o E

is refuting that report. Back here in the US, Nathan big Banks wrap up earnings at Goldman SAX reporting this morning. Then it's big Tech in focus when we get her nas from Netflix in the afternoon, and Bloomberg's Tom Busby has a preview. The key for the streaming video Pioneer, which just announced the debut of a cheaper, ad supported version on November two, is whether it returned to subscriber growth thanks to hits like Squid Game, Inventing Anna, and Dahmer.

After shedding a ton of subscribers in the first half of this year, estimates called for a million more paying customers added in the third quarter, led by editions in the Asia Pacific and Latin America regions and on a crackdown and password sharing. Tom Busby, Bloomberg Daybreak. Thanks Tom let's turn to politics now, where the White House is

watching energy prices closely. Sources tell us the Biden administrations preparing to release up to fifteen million barrels of oil from the nation's emergency stockpile to help keep prices steady. Checking prices now name excruds down a half percent at eight five one a barrel. And on the geo political stage this morning, Nathan China and taiwan er and focus Secretary of State Anthony Blincoln Save Ajing is making plans to seize Taiwan on a faster timeline than previously thought.

That assessment comes as China holds its Communist Party Congress this week. Futures are higher. Straight ahead your latest local headlines, plus a check of sports, and this is Bloomberg. Thanksparing. On Wall Street, fifty degrees in Central Park, Heavy delays on the south on New York State through Way to the Spring Galley tolls details coming up. A traffic first Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much.

Nathan Ratt. Complaints in New York City are up sevent in the last year. City officials are now changing garbage collection rules. Instead of being allowed to pile trash bags on the curbs the day before pick up, people will have to put out the trash no earlier than eight pm. New York Sanitation Commissioner Jessica Tish why have we tolerated this for so long? Over the last six months, the Department of Sanitation has reoriented itself around one goal, getting

our streets cleaner faster. Commissioner Tish says, the Rats are absolutely going to hate this announcement. Georgia Republican Governor Brian Kemp and Democrats Stacy Abrams clashed in the first of two debates of their closely watched rematch at an Atlanta press club event last night that also included Libertarian candidate Shane Hazel. Kemp paated Abrams as soft on crime and tieder repeatedly with President Joe Biden and the nation's economic woes.

Madasar is to continue to help them fight through fourty year high inflation and high gas prices and other things that our door to families are facing right now, quite honestly because of bad policies in Washington, d C. From President Biden and the Democrats that have complete control. Abraham's portrayed Kemp has out of touch with Georgian's priorities and criticized him for backing tougher anti abortion restrictions and looser gun laws. He has weakened gun laws and flooded our streets.

He has weakened our privacy rights and our women's rights. He has denied women to access to reproductive care. In eighteen, Abrahams came close to winning the governor's race against Kemp. The State Department says the US will take action against companies and nations working with Iran's drone program after Russia used them for deadly Kama Kanze strikes, and Kiev, Ukraine's Prime Ministers says the latest Russian attack knocked out power to hundreds of towns and villages as the country prepares

for winter. Global News twenty four hours a day on air and on Bloomberg Quicktake Power by more than seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael Barr, This is Bloomberg. Nathan. Thanks Michael five on All Street Time for the Bloomberg Sports Something with John Stashower. Thanks Nathan. The Yankees and Guardians and a sellout crowd all at the stadium last night for a seven o'clock start, but at nine thirty Lorraine had not stopped.

The decisive Game five was postponed to four o'clock today. Aaron Blon was asked about playing a do or die game to this time of year, You're you're playing for there's a ton on the line, and you're playing for it, and hopefully you know you find that awesome. You know that you and I think our guys do realize that that's a great opportunity. With that comes some nerves and and things you gotta deal with. When is changing his starting picture now that Nestor Cortez has three days rast

Hill start not Jamison Tionned. The Guardians say they are sticking with Aaron Savale instead of using Shane Bieber. It's the NLCS. No one expected. The Phillies finished in third place in the n l e S. They were the last team to get in. The Padres had to beat to one hundred plus win teams the Mets and Dodgers, and yet it's the Padres in Phillies Game one tonight in San Diego, another NFL primetime game without a lot of touchdowns. Chargers and Broncos both scored one combined for

seven field goals. L A kicked one late in overtime after Denver fumbled the punt. The Chargers one nineteen to sixteen. Cowboys and Dolphins both expect their starting quarterbacks to return on Sunday, Dak Prescott from the thumb thumb injury to a ton of Belowa from the concussion. Meanwhile, Washington g V Carson Wentz has a broken finger. He'll miss the

next four to six weeks. If the Garden Rangers improved to three and one, they beat Anaheim six to four to goals for me because of Vanta jad both on the power player Tammy Pannair and the goal three assists. It's early in the year, but panair and leads the NHL and scoring. The NBA season tips off tonight, John Stash that went Bloomberg sparts me. John thanks thirty seven on Wall Street time for the Trice State Business Report with Bloomberg's When Di Gillette New Jersey's casinos and horse

tracks offering sports betting, we're big winners. Last month they raked in nearly four hundred and eighty five million dollars, up nearly seven percent compared to a year earlier. In person winnings total two hundred and fifty two million, up more than one percent compared to before the pandemic. A controversy involving late night talk show host James Cordon and New York City restaurant Balthazar has been resolved. Restaurant tour Keith McNally took to Instagram to complain about Cordon's bad

behavior towards staff, accusing him of being abusive. Towservers, you banned him from the eatery, but then Cordon called with a profuse apology and all was forgiven. McNally posted again saying the ban is lifted and b d and medical technology company based in Franklin Lakes, New Jersey, has signed an agreement with Paris based medical device and delivery systems manufacturer Biocore to use connected technology to track adherents for

self administered drug therapies. That's the Bloomberg Tri State Business Report. I'm windy to let thanks Wendy on Wall Street, Bloomberg Radios on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Gina Servetti and for w w b b M in Chicago.

I'm talking about Boeing offering seven thirty seven match jets once bound for China to air India because the planemaker tries to unload some of the roughly one forty planes it's not allowed to deliver to China. Um Courtney Donahoe on ktr H in Houston. The White House is said to be planning an oil reserve release announcement this week. I'm Steve potoscon w f L A, Tampa Bay. We're talking about how a historic building has been saved as it will be part of a new development. I'm Caroline

HEPCILM Blue Bag d A B Dishovedio in London. We've been speaking to the Mayor of London City, Colin about the state of policing in the capitol and his fiz about blackouts this winter. And those are some of the stories our twenty seven hundred Bloomberg journalist and analysts are working on this morning around the world. It's five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion List. Editorial was written by the Bloomberg at

Storial Board. Russia's efforts to use natural gas exports as a geopolitical weapon present Europe with a challenge. When faced with such a threat, can it muster the solidarity required of a true union? After all, Vladimir Putin's energy cut off is a classic external shock that will hurt some European countries more than others. No doubt, efforts to expand risk sharing will face strong political headwinds, but at the very least, the EU should be able to establish a

permanent fund to provide loans and grants in emergencies. Ultimately, what's needed is a central fiscal authority with its own revenue source and the power to spend when needed to mitigate asymmetric shocks. If a hybrid war with Russia can't bring the EU to even consider such a possibility, it's hard to imagine what will. The editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or opie I n

go on the Bloomberg terminal. This has been Bloomberg Opinion, and you can hear Bloomberg opinion editorials every weekday. At this time, terminal customers can read more at opie I n GOME futures moving higher this morning. You're listening to Bloomberg day Break Bloomberg eleven three oh Weather clearing cooler today, highs in the upper fifties. Tomorrow sunny, mid fifties will be sunny Thursday as well, upper fifties to around sixty

degrees right now fifty 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 Take. This is a Bloomberg Business Flash and I'm Karen Moscow. And stocks are trimming their advance. The pound, the UK guilts are weakening after the Bank of England center a fourth. That is, we could delay the sale of government bonds

until the market has comed. Was inaccurate. We checked the markets every fifteen minutes throughout the trading day on Bloomberg. SNP futures they are still higher, up thirty nine points, down features up two hundred fifty two and NASTAG futures up one hundred forty seven. The decks in Germany's up nine tenths of a percent ten Your treasury down five thirtay seconds yield four point oh three percent. The yield on the two year four point four or five percent.

Nine X screwed oil is down six tenths percent or forty nine cents at eighty four dollars ninety seven cents for barrel comics goals on half percent or seven dollars ninety cents at sixteen fifty six and ounce. The euro point nine three seven against the dollar British found one point one to eight eight and a yen one forty nine. The bitcoin this morning it's down about a tenth of a percent. It's at nineteen thousand, five hundred dollars as of a little berg business flash. Now here's Michael Barr

with more on what's going on around the world. Michael Karen, thank you very much. Ariostrikes have again pounded energy and infrastructure facilities in Ukraine, part of an apparent quickening affort by Russia to drive Ukrainians into the cold and dark. One mayor west of the capitol said all of the city was without electricity and water after a double missile strike. Today, both sides are concerned about the economy and inflation. For

the mid term elections. However, polls showed Democrats are motivated by issues like abortion. For Republicans, issues like public safety, crime, and immigration are driving them to the polls. In baseball, after last night's rain out, the Yankees and Guardians will play their deciding Game five of their a lds this afternoon at four pm Eastern Time. Monday Night football, the Charges beat the Broncos in O T nineteen sixteen. In hockey,

the Rangers, Bruins and Capitals. All one Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts in more than a hundred twenty countries. I'm Michael barn This is Bloomberg, Nathan. Thanks Michael. It's nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak on a morning where we're waiting for one more big Wall Street bank to report third quarter earnings.

Goldman Sachs fleshes out the financials picture for us when it opens its books before the opening bell. Joining us now is Shenali Basset, global finance correspondent for Bloomberg News. Of course, Shinale the big news coming into this earnings as CEO David Solomon's latest reorganization. What more could we hear about that? Once the books get open today? What a grand finale to the big six bank earnings? Truly, first of all, the numbers themselves will be interesting, but

also the reorganization. It's going to be interesting to see how much detail he actually gives. There's been a lot reported over the last twenty four hours about new business lines that would be formed. Does that change the reporting structure? Does he set new targets? Does he set new targets today or does he set them into next year, which is more likely given typically these banks set expectations at

the beginning of the year for investors. And are any of his show plans, especially for that consumer business going to change? And whatever I think about reorganizations, Shinali, I think about is this going to save a company money? I mean, how much of an issue is cost control for Goldman SACS. What's interesting about that is Goldman Sachs is running more efficiently than some of its peers, namely Morgan Stanley. Morgan Stanley has made a couple of acquisitions,

so their efficiency ratio is higher. However, investors have been rewarding Morgan Stanley in a much bigger way. They're actually the richest when you look at how they're trading compared to book value of all the big six banks. So investors really like that wealth business. They really liked the acquisitions James Gorman has made in the strategies outlined. Goldman, however, is trading below book value and so it's cheaper than

both JP Morgan and Morgan Stanley. So there's something that he needs to do David Salman needs to do to really change investors perspectives here about the direction of travel for Goldman SACS. How much change of perspective do you think we're going to get from the earnings that are going to be reported this morning? Which uh aspects of the banking business are we expecting are going to be

doing well? Which units are underperforming that we think Goldman Sachs does what Goldman Sachs does best, which is investment, banking and trading. So the expectations are very interesting. If they don't beat those expectations or at least coming in line. I think investors would be a little bit disappointed because they tend to be so competitive and they are combining investment, banking and trading under one business under this re ord. So with that said, what about the rest of it, asset,

wealth and consumer? How do you set expectations around how well those businesses are supposed to be in a tough macro economic environment and the type of investment that they're willing to put in the business. Again, Golden's efficiency is better than Piers this quarter alone, they're supposed to bring in returns on equity that are lower than Morgan Stanley has reported. But let's see if they punch about their weight, and let's see if investors are reward that the cycle.

Investors have been rewarding the big consumer businesses, not the investment banks. And of course Goldman's acts doesn't have that big consumer business that is benefiting from this UH wave of higher interest rates. Although we did get that word just before this earnings comes out that Goldman is going to be starting this new high yield savings account with Apple. Could that help to bolster the consumer sign and give

them a little more market share. Perhaps it's interesting at this point it's not market share that investors are clamoring for its profitability. And the thing about it is, yes, Goldman's acts has some of the most competitive savings rates out there, but that comes at a cost, and so they have very interesting partnerships General Motors, Apple, Apple has

been expanding their partnership. Apple has been very selective about its financial partners and so in theory, it would give Goldman a competitive edge to get that close to a big tech company with such huge financial ambitions. But if you do have such a high savings rate, you're paying for that, and investors right now are not thrilled about the trajectory of the profitability at that consumer bank. All right,

we're gonna get a lot more details. Seven thirty Wall Street Time is when we're expecting Goldman Sex to open its books, and it is going to be a very interesting conference call with so much news flow coming in on this company ahead of these earnings. Shinali Bassek, Global financial correspondent for Bloomberg News. Thanks as always for keep us on the top of what's happening in that sector.

Karen Verry, Nathan, thank you. It isive three on Wall Street Time for the Bloomberg Law report it has granted you buy American Arbitration Association business disputes are inevitable. Brazil Fouster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More in a dr dot org. Let's get to the legal stories we're

watching this morning. From Bloomberg's Jeff Bellinger. American Airlines passengers asked the federal court for preliminary approval of a deal that would fully refund baggage fees to customers who have been promise they could check their luggage at NOPE costs. The state judge and Maryland voided the states one of a cond texts on digital advertising, ruling that it violates the US Constitution and a federal law protecting many forms

of online commerce from taxation. Abortion providers in North Carolina asked the state trial court to block enforcement of a law mandating that only doctors can prescribe pills to induce abortion. 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. Ry Jeff, thank you now.

Another legal's news that we're watching this morning. The January six Committee voted to subpoena Donald Trump to testify and provide documents about his actions on January six. For more, Bloomberg's David Weston spoke with Case Western law professor Jonathan Adler about the possibility of the former president actually testifying. Well, I think that really depends on whether or not the committee and Trump are going to come to an agreement

or able to come to an agreement. Um, you know there there there is precedent for a committee subpoenaing a former president and that person testifying, But that testament that the president was when a former president agreed to testify or complied with the subpoena. In this case, because it's the fall of two and we expect Congress to chair or the House of Representatives to change hands in the coming election, there's not a lot of time for legal wrangling.

So if former president fromp were to resist the subpoena, it's quite likely that he would be able to run off the clock. So it really depends on whether or not but he wants to take this opportunity to put out his side of the events of January six, or he doesn't, So that suggests that it might well be that it's more the court of public opinion that the committee is really trying to appeal to rather than a

judicial court. There is, however, a udicial proceeding in a Florida obviously involving all those documents that were seized or assumed to a search warrant, and now the president, the former president is taken up to the Supreme Court the question of exactly who gets access to review some of

the classified documents. Tell us about that proceeding, because it got a lot of attention, I must say I my reaction was, I was not so very very surprised that the Supreme Court's ruling, which did not have a descent attached to sort of a simple order. No, I mean, the indications were that the Supreme Court was not going to take an interest in this. So, after taking some time to file something, Trump's attorneys ultimately did file a the emotion with the Supreme Court, seeking to vacate at

least part of the eleven Circuit's decision. Um. The Supreme Court didn't act right away. They gave the Justice Department a week to respond, very clear indication the court didn't think it was urgent, not at all surprised at the court without any noted descent. I'm declined to grant that application. And as case Western Law Professor Jonathan Adler's because the Bloomberg's David Weston Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on

the Bloomberg terminal at b law Go. Futures this morning are on the rise. S ANDP futures at forty five points down, futures of two hundred eighty seven nasdack futures of one D seventy two ten year treasury down three thirties seconds, you know, four point out two percent, and they yield on the two year four point four or

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