Bloomberg Daybreak: October 18, 2022 - Hour 2 (Radio)

Oh rats, I'm Michael Barr Morris. Fight ahead, I'm John Stashoward Spurt. 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 Bronco. That's all s train ahead on Bloomberg day Break on Bloomberg. He Live in Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Syrius XM one nineteen and around the world Old on

Bloomberg Radio dot Com and the Bloomberg Business app. And good morning, I'm far at Moscow. I'm Nathan Hager. Bloomberg Daybreak is brought to you by SEI. Asset managers don't get results that are off the charts when their solutions

are off the shelf. Learned how SEI is operating platform can turn infrastructure into a competitive advantage at s E i C dot Com, Slash Tech and futures are higher this morning six o one on Wall Street, and we checked the markets every fifteen minutes throughout the trading day

on Bloomberg. Right now, SNP futures are up about fifty points down, futures up three hundred fifteen, NASDACK futures up one five ten year treasury down to thirty seconds, yield four point two percent, and the yield on the two year four point four four percent, and NIMEX screwed oil is down about three tenths of up percent to eighty five one cents a barrel Nathan Well Karen. The rise

in futures follows yesterday's powerful rally on Wall Street. The SNP five hundred game two point seven percent, while the tech heavy nasdacs surged three point four percent. David the senior investment strategist at Peapack 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 secrecal 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 five percent year to date on the broad market. On the NASTAC that alone should with the appetite of all bargain hunters. David Deeds at Peapack Private Wealth notes the sp closed above a key technical support level yesterday. Still Nathan stocks have further room to fall. That's according to the latest fund manager survey

from Bank of America. Their 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, as the highest level since April of two thousand one. Participants are underweight equities in Europe. Today, Karen, we are hearing from Liz Trust, the UK Prime Minister, says she's sorry for going too far, too fast after

new Chancellor gut it. Most of our 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 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 earning from the big banks today with Goldman Snacks reporting this morning, and here with the preview is Bloomberg's Jeff Bellinger. 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 Bellinger, Bloomberg Daybreak. Thanks Jeff. 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, who 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 the 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 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 meantime, Nathan, we're seeing many companies try to diversify their leadership ranks, but that effort it could be getting harder as women leave top tier jobs at higher rates than ever before. A report from Mackenzie and Len and 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. Well, let's turn to Washington now, Karen. The White House is watching energy prices closely, and we're told the Biden administrations making moves to ensure the price of gas doesn't go even higher. Amy Morris has the details from our Bloomberg 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, the administration is looking at limiting fuel exports to keep more gasoline and diesel inside the US, a more dramatic step that sort to say would not

happen before the midterms in Washington. I'm anymore as Bloomberg daybreak. Okay, thanks in checking all prices now, Nimex crews dropping a bit, down two tenths per cent at eighty five twenty nine cents of barrel. Brent is down one tenth per cent at ninety nine cents. Well in the geo political stage this morning, Nathan, China and Taiwan are in focus the US as Beijing can move to seize Taiwan and a much faster timeline and previously thought and Bloomberg said, Baxter

has the 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, b 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 at Baxter. Thank USMP futures right now are up forty nine point staff futures up three seventeen. NASTAC futures are hired by a hundred eighty six points ten. Your treasuries down one thirty second, the yield four point zero one per cent. Straight ahead,

your latest local headlines and a check of sports. This is Bloomberg six oh seven on Wall Street. Now. We are at fifty degrees in Central Park. Got a crash northbound Bronx River Parkway. It's closed at Allerton Avenue. More coming up in traffic. First Michael bar with more on what's going on in New York and around the world. Michael, thank you very much. Nathan, New York City announced the new policy meant to keep the streets cleaner and free

of rats. With trash bags piled on the curbs at night. There are new rules on when you can take out the garbage. Sanitation Commissioner 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 want to be clear, the rats are absolutely going to hate. This announcement, Sanitation Commissioner Tish said buildings can put their trash out no earlier than eight pm, and

there will be more collections overnight. New York City arts organizations, including the Metropolitan Opera and Carnegie Hall, announced that they will make face masks optional beginning October as COVID nineteen cases continue to decline across the area. The group added that it will continue to encourage the practice of masking and vaccinations, which also remain optional. Georgia Governor Brian Kemp faced Democratic challengers Stacy Abrams and Libertarian candidate Shane Hazel

for a 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 Abram'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 the 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 retiring Ohio Republican Senator Rob Portman on NBCs

w FM JTV. Vans accused Ryan of 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 rst agents to go after them. Bryan replied, advances 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. Poles projected race as a virtual time global Neames twenty four hours a day on airand on Bloomberg quick Take, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael bar This is Bloomberg. Nathan. Thanks Michael almost six ten on All Street Time for the Bloomberg Sports Update

with John stoesshown All right, Nathan. Second time in this series where the Yankees and Guardians have been reined out at 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's a game. Five is at four o'clock today, and with the day off, the Yankees are changing starting pitchers. Out is Jamison tan and in is Nestor Cortez, picking on three days rest.

The Guardians could do likewise with Shane Bieber. He was the sty young winner just two years ago, but they say they are sticking with Aaron Savali the winner today. Quickly off to Houston for Game one of the a

LCS tomorrow. The surprising n LCS Phillies and Padres starting tonight in San Diego, two teams who failed to win ninety games to decide the penned after three n l teams that won over a hundred games, including the Mets, were outst Week six wrapped up a f C West game in l a went over time Chargers beat the Broncos nineteen sixteen. Third great win for l A. Denver now two and four and the red Hot Jets visit

the Broncos on Sunday. I mean one a f C teen was a better record than the Jets at the Garden. Rangers and Ducks. Good start for the Blue Shorts, especially with the man advantage. But theres the candile. It stacks it up. Let's start to that down low pro chack aproch about a Jets these stars. It was about a Jet shutting up tro check for the first power play goal. If time pro check to Sabanda, chat to the Rangers and seventy the later is the banner. Jet scored another

power play goal. Rangers beat Anaheim six to four, their three and one NBA season tipping off tonight, a couple of games Nixon Nets get going tomorrow, John stash Ower, Bloomberg Sports, Nathan, Thanks John. Sp futures right now forty six points, South Feutures of tune to ninety five dance A Futures up a hundred seventy three points. We'll talk about this market next with HSBC chief multi asset strategist Max Kedner. This is Bloomberg Bloomberg eleven three oh weather

clearing cooler today, highs in the upper fifties, sunny, mid fifties. Tomorrow, might hit sixty by Thursday. Right now it's fifty in Central Park. Markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quicktake. This is a Bloomberg Business Flash and I'm Karen Moscow. And futures are higher this morning, but SMP futures of fifty points down. Futures have three number twenty nine, and ASTA futures have on four the decks.

In Germany's a one point one percent tenure treasury that'll change. He had four point one percent that yield on the two year four point four or four percent. N i X screwed oils down a tenth of upper cent or eleven cents at eighty five dollars, thirty five cents of barrel co mix well that a third of percent, or six dollars at sixteen fifty eight thirty announced euro point

eight four three against the dollar. British found one point one eight eight to the end one nine point oh six and Intel's mobilize says it sees its ip ot the price between eighteen and twenty dollars per share, according to a filing. 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. Ukrainian President Zelenski says his country needs more help to defend itself from the Iranian maid so called Kama Kanze drones the Russian army has been using to attack civilian infrastructure. At least eight people were killed during yesterday's strikes. A suspected serial killer

in Stockton, California, scheduled to be arraigned today. Authorities say forty three year old Wesley Brownlee is accused of terrorizing the community for months, hunting for his victims, and often waiting in the dark. In baseball, the Yankees and Guardians will play their deciding game five of their a LDS this afternoon at four pm Eastern time. Rain postponed last night's game. Wenday Night football, the Chargers beat the Broncos in overtime nineteen sixteen. In hockey, the Rangers, Bruins, and

Capitals all one. Global News twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts are more than a hundred twenty countries. Michael barn This is Bloomberg Nav all right, Michael. Thanks at six nineteen on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we're joined now by Max Kentner, chief Multi Assets strategist at HSBC. Great to speak with you this morning, Max.

As we watch futures continue to rise following yesterday's bounce on Wall Street, is there room for this rally to run? Are you fading this one? Yeah? Good morning, So I think I would be very very definitely fading this one. I think there's quite a quite a distinct lack of pass through really and then follow through if you if you look at the cross affit picture really because yeah, equities are all credits, breads are a bit a bit

pint tighter. Fine, But actually what the market of what the equity market has played in particular yesterday and this morning is it is much rather the sort of return to goldilocks. I hope for a pit pivot again, but the difference to what we've seen perhaps in June, July, August, was that this was based on lower real yields, right, and it was sort of lifting old boats led to temporary reprieve leen led to you know that the led to gold spiking temporarily. All of that is missing right now,

right again, is moving at all? Gold is sort of here or there. Right, It's it's fairly flat. Actually a real rate. If we look at long dated real rates in the US, again, they're pretty flat, right, They've been pretty flat in the last a couple of days. So it's really just the equity market playing a lot of hope paths around. You know, the news out of the UK yesterday, that's all. That's all got to temporary relief rallies.

But in terms of if you have a three to six months view, I would be definitely fading this one now. Since you mentioned the news out of the UK and the I guess when you can't a pivot away from trust anomics, you see that as temporary. I mean, what what would it take for us to have a little bit more UH stability sensing coming out of the out

of the UK situation? Yeah, I guess the the near term volatility is extremely high in the UK right, and then we we just don't really have a handle on all these political decisions, whether she's going to remain Prime minister or not, or you know, whether there's going to

be a peace or members of the government resigning. What kind of pressure that will put on this This is all sort of the political speculation that will put volatility really really still high for the pounds and for guilt now finnally enough, Actually, UK equities, if you look at the large camps or the foots you one hundred, have been pretty okay during this period, and they've been pretty okay actually here to day, because of course we know there's value in the market, right, there's more of a

whole new market, it's more of a defensive markets, and of course it benefits from that lower sterling. So so finally enough, actually, UT equities, the large caps from a

global perspective look pretty okay. But until we can really sort of sound the all clear on guilds, on on pounds, sterling, I think we will need to not only see less noise on the political front, but we'd also need to see you know, more convincing news on the structural front, because let's Let's remember that among sort of detailed currencies, the pounder in the UK is probably facing the least favorable death dynamics this year and next year, and that is,

you know, that's the much more important one from a let's say, at three to six months perspective, if you look at the pound disregarding really the political volatility. Turning back to the US market, we got the latest monthly fund manager survey from the Bank of America thinking that we might not see bottom here on Wall Street until sometime in the first half of next year, when the FED finally starts to pivot. When are you thinking the Fed pivots, if not from a higher interest rates to

at least slowing down the increases. Yeah, But the funny thing is every everyone talks about a pivot. So far, everything we've seen was a pivot higher right, so far so far. The actual funny thing is that whenever we were talking about a pivot, it was like, well, maybe the FED funds is going to pick up three oh, and now it's three and a half. Now it's all

and off. But the point for me is that the FED is really only going to pivot in my view, when things are going to go horribly wrong, not just wrong, but really and I have to emphasize that horribly wrong. Right, So it will not be sufficient if we see you one to three months of a bit worse than economic data, right and oh maybe we're going to go into refreshing now,

that will not be sufficient, right. It will only really pivot and it will only really start to cut right if we see an aggressive downward drift in in activity data. And that of course is not good for risk asses either, which means to me, I think the bottom really only is in for for equities if it we're starting to see the correlation between equities and rates go negative again, i e. When people really start to become genuinely concerned about a recession. Just thirty seconds left here, what is

your bottom? Where do you see the SMP going? So on? Our focus for end of this year three thousand, five hundred, but we have said we could reach at low as low as three thousand two hundred, because that would put us with a bit more valuation pressure. Still, it would mean that you know, we're probably gonna start to close this gap that exists between long dated real rates and valuations right now. So to us, there is as much

scope pest to three thousand, two hundred. That the buying buying territory, and of course we did close higher yesterday at thirty six seventy seven. Thanks for this, Max, great having on with us this morning. Next Kettner, Chief Multi Assets Strategists at hs VC Futures this morning moving higher once again with SMP futures of fifty four point, Staff futures up faded at fifty five Nasty futures up a

hundred ninety six points. This is Bloomberg Blomber eleven three oh Weather clearing cooler today with highs in the upper fifties, Sunny, mid fifties for tomorrow, sunshine upper fifties for Thursday. Right now, it's fifty degrees and cloudy in Central Park. Broadcasting live

from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living free to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg sixty to the country, Sirius XM to A one nine team, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak and it's six thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we are just about three hours

away from the open of US trading. Let's get to the five things you need to know to start your day. Brought to you by Interactive Brokers. Interactive Brokers charges Martin loan rates from three point five eight percent to four point five eight percent rate subject to change. Learn more at i v k R dot com slash compare. First. US futures are rising after adding to yesterday's big rally. Still expect more of volatility ahead. That's according to Samir

samana with Fols Fargo. 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 constituted three percent up and down days, I think it 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 Samanas says daily swings of two

to three percent indicate fergility in the market. Overseas can In 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 with their 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 guy

wanted to deliver for the public. Listrust says she plans to continue serving as Prime Minister and back here in the US, big banks wrap up earnings with Colman Sax reporting this morning. Then it's Big Tech and Focus this afternoon with Netflix reporting at 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 subscribe or 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 call 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. All right, Tom, thank you, And we did get earnings from Johnson and Johnson it cut its sales guidance for the full year, still profit in the quarter, beat analysts estimates and share are higher in early trading. It's politics now caring. The White House is watching energy prices closely. Sources tell us the Biden administrations preparing to release up to fifteen million barrels from the

nation's emergency oil stock pile. Checking prices now, Nimex crude is lower by a quarter percent at eight twenty five a barrel, and a geopolitics Nathan China and Taiwan and focus. Secretary of State Anthony Lincoln says Beijing is making plans to see to Taiwan in a faster timeline and previously thought that assessment comes as China holds its Communist Party Congress this week. That's the five things you need to notice start your day. Brought to you by Interactive brokers Heaspring.

It's now six thirty three on Wall Street. Were fifty degrees in Central Park northbound, Bronx Urver Parkway still closed at Allerton Avenue, and Michael bars here with more on what's going on in New York and around the world. Michael, thank you very much. Nathan Rat complains in New York City are up in the last year. City officials are now changing garbage collection rules. Instead of being all the pile trash bags on 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. Democratic Representative Tim Ryan and Republican Jade Events met for their second debate as the two v for replacing retiring oile.

Republican Senator Rob Portman on NBCs w FM JTV, Vans said he supports GOP Senator Lindsey Graham's bill for a national ban on abortion after four weeks of pregnancy. If you can't support legislation like that, you are making the United States the most barbaric pro abortion regime anywhere in the entire world. Ryan said Vance became sub serveians to former President Trump to gain his endorsement after Trump and solded him publicly. If you think you're gonna help Ohio,

you're not. If you can't even stand up for yourself, how are you going to stand up for the people of the state. How are you gonna take on the corporate interests? Poles projected Rains as a virtual time Georgia Republican Governor Brian Camp and Democrats Stacy Abram's clash in their first of two debates very closely watched rematch, Kemp tied Abrams with President Biden and the nation's economic woes.

My desire is to continue to help them fight through fourty year high inflation and high gas prices and other things that our george 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. Abrams criticized Kim 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 REAP reductive 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 the Iron's drone program after Russia used them for deadly kamikaze strikes. And Kiev Global News twenty four hours a day on airand on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. I'm

Michael barn This is Bloomberg, Nathan. Thanks Michael. Six thirty six on Wall Street and John stash Are has the Bloomberg Sports Update. All right, Nathan. The Yankees and Guardians and I sellout crowd all at the stadium last night for a seven o'clock start, but at nine thirty the rain had not stopped. In the decisive game five was postponed at four o'clock today. Aaron Bruin was asked about

playing a door dog this time of year. You're you're playing for, there's a ton on the line, and you're playing for and hopefully you know, you find that awesome. You know that he 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. Who and is changing his starting pitcher now that Estra Cortays has three days rest, he'll start, not Jamis since I own the Guardians say they are sticking with Aaron Savali instead

of using Shane Fiever. It's the NLCS. The No one expected the Phillies for just some third place in the n L, as they were the last team to get in. The Padres had to be two one hundred plus win teams. They didn't even win ninety And yet it's the Phils and Padres game once to night 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 lad in overtime after Denver fumbled the punt.

The Chargers won nineteen to sixteen. The Cowboys and Dolphins both expect to get their starting quarterbacks back Sunday Dak Prescott from the thumb injury to a tongue of below from the concussion. Washington QB Carson Wentz has a broken finger. He's gonna miss the next four to six weeks. The Garden Rangers went to three and one. They'd be Anna on six four two goals for me, his advantage at both in the power way our Ni Panarin a goal,

three assists. It's certainly the year. But Panarin leaves the NHL and scoring NBA season tips off to night, John dash Award, Bloomberg Sports Nathan all Right, John, thanks six thirty seven on Wall Street. Time to take a look at stock. Some of the names moving in the pre market, a big mover to watch for Bloomberg Radio and TV markets correspondent critic goopta this morning in the pharma space. Yeah, we start off with Johnson and Johnson. They just came

out with the earnings. Here shares are popping up about two percent in the pre market. J n J is your taker. They are, however, cutting their sales forecast. They actually missed their estimates and on top of that kind of reported at fifty cent headwind for facts on their adjusted EPs three. Nathan, this is not sound like good news by any measures. So why is the stock up?

And I'm just running through some of these numbers here, and it kind of looks like there is some bullishness on some of the drugs that they're actually looking to pursue some of the R and D costs as well. So we're gonna keep you updated on all the headlines coming out of their earnings called UM as we get more of them. Another one, I really want to keep an eye on and some of those tech stocks, Nathan, because it looks like we have another potential rally on

our hands. I mean it is early, we have about three hours to go before the US open, but a lot of those tech stocks are kind of rocking and rolling the way they did yesterday. Take a look at Apple shares for example, A A p L is your taker, up one and a half percent in the pre market, and Video not far behind n v d A up

two point six percent. I remember, I love to look at those chip stocks because they're kind of a magnifying glass to whatever happens in the tech space, or the big tech space, I should say, so Microsoft not far behind as well, M S f T actually one of your biggest UM volume movers this morning of about two percent. And like I said, those chip stocks cannot forget them

A M D. Intel both up just shy. I have about two percent anything and we'll see if that tech sentiment holds up once Netflix reports earnings after the bell, but well, we'll save that for later. I see you're watching a big retail as well. We absolutely have to. Target is top of my into your t GT. Some

good news coming out of Target. It's had a rough couple of months with the inventory build up that a lot of people have said, well, you know what, this just makes it not an unconvincing by Stapping said it was upgrade to a buy from a hold over. Jeff Ray saying that the combination of a subdued valuation that is fancy talk for the fact that's been so much selling pressure and also talking about improvements in the supply chain inventory positioning, it says well that they're making them bullish.

What's interesting to me though, as they said, the subdued valuation, which basically means that the market has sold it off so much it's really really cheap to buy right now. So that one doing really well. I'll leave you with one last one. Foobo TV f U b O cheers up about ten percent. Analysting to the firm's decision to end operations of its food sports book Betty unit will

help it's bottom line, all right, Bloombergradi on TV. Markets correspondent Pretty Gupta watching those early morning movers for US and checking stocks as a whole. As Crety alluded to, We've got a rally going on this morning, led by tech Nastack futures up one point nine percent, a gain of two eight points. S ANDP futures are up fifty nine points. That's a gain of one point six percent, and Dow futures right now up four hundred twelve points

for a gain of one point four percent. Send your treasury is up one thirty second the yield on the nose. This is Bloomberg Bloomberg eleven three oh Weather clearing, cooler today, upper fifties for highs, sunny, mid fifties tomorrow, sunshine Thursday as well, with upper fifties expected highs. Right now, it is fifty degrees in Central Park. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktape. He's a

Bloomberg Business Flash, and I'm Cameron Moscow. Futures are rising this morning, and we go to the first word breaking news dance for today's morning call. Here's Bill Maloney, Bill, good morning, Good morning, Karen. That's right. US futures with a bid right now at down Futures up three eighty five points, SIPs gained fifty five and nastic features are up by one ninety four. The US ten ual that four point one percent, Gold is up two, oil is

in the red, and bitcoin is trading little changed. Japan rose one point four percent overnight, while up markets are also trading in the green and back in the US

on the economic front. At ten o'clock, the NHB Housing Market Index Regarding earnings this morning, Jane j BT estimates but hasbro epm EPs missed and look for Goldman Sachs to report around seven thirty graphic things up Target was upgraded to buy over at Jefferies Live from the first of Breaking news desk on Bill Maloney can helright, Bill, thank you, and to hear live breaking news of your Bloomberg Times. Squawk on your termin I'll escue you a

w u K. 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. Hair strikes have again founded energy and infrastructure facilities in Ukraine, part of an appen and quickening effort by Russia to drive Ukrainians into the cold and dark. One mayor west of the capital said all of the city was without electricity and water

after a double missile strike today. The Biden Administration's online portal for its student loan debt forgiveness program is now live at student a dot gov. Millions of eligible borrowers can have thousands of dollars and loans canceled if they apply by the end of next year. In baseball, after last night's rain out, the Yankees and Guardians will play their deciding game five of their A LBS this afternoon, four pm Eastern's. On Monday Night football, the Chargers 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 journalists analysts more than a hundred twenty countries. I'm Michael bar. This is Bloomberg camera. Hey, no golbar, thank you. It is sixty nine on Wall Street, and we turned to news in science and technology now

with the Bloomberg n j I T STEM Report. It is brought to you by New Jersey Institute of Technology. Then 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 just making news and science, technology, engineering and math. There are signs that ships supply crunch is easing. Delivery times shrank by four days in September, and that's the

biggest drop in years. According to research firm by Susquehanna Financial Group, lead times, the gap between when its ship is ordered and when it's delivered, average twenty six point three weeks in the period. That compares to nearly twenty seven weeks the prior month. Wait times contracted for all key product categories, with power management and analog chips seeing

the biggest declines. The nation's first tax on digital advertising has been struck down as unconstitutional by a Maryland judge. It's a law that attorneys for big tech have contended on fairly targets companies like Facebook, Google, and Amazon. The state estimated the tax on digital advertising could raise about two hundred fifty million dollars a year to help pay for education measures. And revenue generated from sports gambling in

New Jersey was up seven percent in September. Internet gambling brought in over a hundred thirty five million dollars in September, and that's an increase of over ten from a year ago. That's a Bloomberg and j I t Stamp report. Nathan,

thank you, Karen. We are live from the Bloomberg Interactive Broker Studios where it's six fifty on Wall Street time now to check what's going on in d C. Some of the top stories in our nation's capital include a planned oil reserve announcement this week from the White House, an unpopular President Biden avoiding the mid term travel strategy of his predecessors, and tax breaks for kids and companies suddenly brewing on Capitol Hill. Let's bringing Joe Matthew to

talk more about some of these stories. Are Washington correspondent, host of Sound on Here on Bloomberg Radio. Joe. Great to speak with you, as always, especially about some nice reporting from DC. Team that another strategic reserve release could be coming in days. Yeah, it's it would be the I guess, the last trumph, as we like to say, in what was a one hundred eighty million barrel withdraw

that started back in May. Remember, this has been kind of a rolling program here, Nathan, a million barrels a week, and this last fourteen million barrels would would at least in the eyes of the White House, potentially lower prices just in time for the mid term elections. But at the same time, they're looking at this reserve here, Nathan, and it's it's just about half full at this point, according to Jared Bernstein, the National uh Economic Council member

who was talking about that's over the weekend. But the fact of the matter is it is the lowest inventory of diesel here since we have first started compiling this data in ninety two. So there are some worries, particularly about heating oil as we head into winter. Yeah, and it's something that the White House has been facing a number of questions for for especially from Bloomberg News as well.

But as you mentioned, this is coming just three weeks before a mid term election, and you drive by some of these gas stations, and yeah, these prices are starting to creep back up again. It's been creeping back up towards four dollars of barrel or a gallant, i should say, on a national level here, and the timing is not good. As we've seen reflected in the polls. It's been a remarkable connection between Joe Biden's approval ratings and the price

of gasoline. And just yesterday we were talking about a couple of new polls New York Times, CBS showing the kind of momentum that Democrats had coming out of the Supreme Court ruling on on Roe v. Wade really diminishing and in some cases all of that progress disappearing in terms of the poll standing today. We have three weeks, by the way from this day, Nathan, and the idea is to try to get back to some of those

higher polling numbers we saw last summer. Does this raise some question about whether this rough relationship that we're starting to see now between the administration and Saudi Arabia's just kind of coming at a really difficult time politically. Well, it is, and you know, we've heard repeatedly from the White House that they're not really going to deal with that until after the mid terms. So you have to picture the administration sitting there at feeling like, you know what,

we're on our own here. Republicans are digging us on inflation in high gas prices. Saudi Arabia is no longer a factor. We even made some phone calls to Venezuela. So here we are with fourteen million more barrels. Let's get them into the system and see if it makes an impact. They're also talking, Nathan, and this is a slightly separate conversation about export controls. There is not unanimity inside the administration on this. In fact, they're arguing about

what impact it might have. That's a decision also that would follow the midterms, So this may be the last shot the White House gets. And speaking of feeling like they're on their own, maybe there's some evidence that President Biden is starting to feel that way politically with his own Democrats when you look at his travel schedule this time of the election cycle. Yeah, these can be lonely days for the incumbent. And look, it's it's not unusual.

We we had a similar conversation about Donald Trump. We did about Barack Obama. We did about George W. Bush. But this is even less, even less travel for Joe Biden, who has been out there, Nathan, he was in California last week. He's gonna be going to uh to Pennsylvania a bit later on this week. But if you look at his schedule, it does not look like someone who's in the run up to a major mid term election here and and look, it's it's not a mystery as to why he will be a liability for a lot

of candidates. In some cases, he's a help and he shows up in those areas. He's sure hoping to help John Fetterman in a very tight race in Pennsylvania this week. But there are other places like Georgia, for instance, like Ohio, We're just showing up might actually hurt the Democrat who's running there. And lo and behold, who is going to be hitting the road, Barack Obama. He'll be in Georgia and a couple of other swing states at the end

of this month. Yeah. Interesting, How does the president's travel schedule compared to his predecessors at this time. Did they tend to be in battleground states at this point in the cycle. Yeah, Look, it is lighter than his two immediate predecessors at the same point in their campaign. But we and they were doing some travel. But you know, this became an issue for both Trump and Obama in

the mid term elections. You remember, coming off of the healthcare debate, uh, the Obamacare debate, it was better for him to stay home in some cases to actually help the Democrat. Joe Biden made a joke the other day about Chris van Holland in Maryland, saying, you know, I'll come run for you or against you whenever one helps. Yeah, I remember that. Got about a minute left here, Joe. After the mid terms tax breaks, coming back on what's this about? This is you know, I'm not sure what

to make of this. It's just gonna really depend on the outcome of the midterms. With some great reporting by Laura Davison, who does such a good job for us when it comes to the tax story on Capitol Hill. Look, there are a couple of things that never got done on both sides for Democrats for Republicans over the course of this legislative year. One of the biggest ones is

the enhanced child tax Credit. Remember that was a huge priority for Democrats and it was never included in what would have been its last opportunity in the Inflation Reduction Act.

Republicans meantime, want to cut some taxes for corporations for research and development, some other items here, uh, not not just in across the board tax cut, but some very specific areas where they think they could help if we come out of the mid terms in a in a similarly divided Congress, even if say Republicans take the House, but if the numbers are still tight, you could see some compromise here if there's a blowout for Republicans, though, Nathan,

I would not be looking for any extended child tax credit. And I'll remind everyone, with the government set to run out of money on December sixteenth, that we're going to have to have another argument about how to fund the government and what it will look like going into the new year. The results of this mid term election will dictate the outcome of that debate. Yeah, debate that keep seeing rear It's head over and over again in Washington.

As always, thanks for joining us. Joe Matthew, host of sound On on Bloomberg Radio, which you can catch every weekday afternoon five pm. Wall Street Time across Bloomberg Radio and read more about all these stories on Bloomberg dot com or on the Bloomberg terminal and the market open. Futures are moving higher after yesterday's rally. We could be building on it today, with SMP futures up forty nine point, STOUT futures up three thirty three. NASAC futures are higher

by a hundred seventy five points. Tenure Treasury little change now with the yield at four percent. Yield on the two year four point four five percent. Bloomberg Surveillance is next with Tom Keene, Jonathan Faroh, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hager. This is Bloomberg