Bloomberg Daybreak: October 19, 2022 - Hour 1 (Radio)

The latest polls show New York's governor's race has tightened, plus Georgia voters turned out in record numbers on the first day of early ballots. I'm Michael lar More Ahead, I'm John stash Our and sports. The Yankees beat the Guardians, they start the Alcs tonight and used to the Philly

shut out. The Padres wins with the Devil's Islanders. That's all s Trendy ahead on Bloomberg day Break on Bloomberg eleven three on New York, Bloomberg N one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning, I'm Nathan Hagar and I'm Karen Moscow US

dot Index Future. It's little change this morning. We're coming up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP Futures little change down. Futures down thirty five, Nowsday Future is up seventeen. The decks in Germany is down two tenths of a percent, ten year Treasury down thirteen thirty seconds. You had four point

oh six percent. They yield on the two year four point four eight percent, and NIMEX screwed oil is up about a third of a percent at eighty three dollars eleven cents of barrel. Nathan Karen the SMP five hundreds. Coming off back to back winds to start the week, the index is up three point eight percent in just two days. However, Max Kettner, chief multi asset strategist at HSBC, thinks stocks will remain under pressure and the FED will

not change course. 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 off a bit worse than economic data, right and oh maybe we're going to go into recession now, that will not be sufficient. HSBC's Max Kettner says he

would fade this rallying stocks well, Nathan. The rise in equities this week has been fueled by a solid starter earning season, and it continued after the bail with Netflix. The streaming leader added a better than expected two point four million customers in the third quarter. Read Hastings is co founder and sherman of Netflix. Well, thank god, we're done with shrinking quarters. So the big feeling of we're back to the positivity. We still got f X, so

that's a huge hit. Uh, you know, as we've explained, so that's not going to go away. But other than that, all the stars are lining up very well for us Netflix Sherman read Hastings, as the company expects to add another four and a half million mobile subscribers this period despite headwinds from foreign exchange. Well, let's look at some other stocks on the move following earnings. Karen's. Shares of

United Airlines are up five and a half percent. The airline sees profit well above estimates in the final quarter of the year. That's being fueled by a rebound in corporate travel and leisure trips. We're also watching shares of Adobe this morning. The maker of creative design software reiterated its forecast for the current quarter, and that is relieving fears economic uncertainty would hinder demand. Well Up next Nathan, the earnings continue with results from twenty companies in the

S and P five hundred. The biggest name on today's list is Tesla. We get a preview of those numbers from Bloomberg's Jeff Bellinger. Shares of the electric car maker have been under pressure ever since the company reported third quarter delivery figures that fell short of forecast. Today's report will get close scrutiny. Investors will look beyond sales, earnings

and profit margins. Bullish fourth quarter delivery guidance would be especially welcome Bloomberg Intelligence, as the plunge in Tesla's stocked could make this a good time for the company to initiate capital returns without hurting its balance sheet. Jeff Bollinger Bloomberg Daybreak, Thanks Jeff. Turning to the economy now, do not look for a pause in rate hikes from the Fed.

That's according to Minneapolis President Neil cash Kari, who says the central bank must continue tightening as inflation remains hot. If we don't see progress in underlying inflation or cor inflation, I don't see why I would advocate stopping at four and a half or four or seven five or something like that. Minneapolis Fed President Neil cash car He says

he sees interest rates reaching the mid fource early next year. Meantime, Nathan, the Fed will hand out a grade on the health of the U S economy today with the release of its Regional Beige Book. We get more from Bloomberg if any down junis. Today's bache book, based on anecdotal reports in the Fitch twelve district banks, will help set the

stage for November's policy meeting. Bloomberg Economics notes the prior biche book and early September indicated little change, unbalanced the most lackluster, showing you a pandemic recovery but not yet alarming. The next FED policy session is set for November one and second, and a kind of wist anticipated another interest rate hike aimed at containing inflation. Beneath Bill Judas Bloomberg, daybreak of any thanks, we're also seeing inflation store in

the UK. For more on today's red hot price reading, let's go live to London and check in with Bloomberg's James Walcock, Good morning, James, Good morning, Nathan and Karen Sawing. Inflation indeed, price rises hit a four decade high of ten point one percent year on year through September. That's slightly above what economists forecast. It's a call to arms for the Bank of England after the central Bank has found itself distracted by chaos in the UK bond market.

September's inflation figure is also used as the baseline to increase state welfare payments and pensions, so that increase puts more pressure on the UK government's fiscal policy as promised. Of this Trust tries to bounce the books in London. James Walcock, bloom bog daybreak, All right, James, thank you. Back here in the US, the Biden administration is making

more moves to lower gas prices. Later today, the President announces another fifteen million barrels coming out of the Strategic Petroleum Reserve, but still Bob McNally, founder and president of Rapid and Energy, says it might not be enough going against OPEC plus with the sprs like going into a fight with you know, the guys with a with a square guns. Right. It's a finite resource. You get to use it once, and I think this is going to make the coming boom cycle in oil prices even boom. Here.

Rapid Down Energy president Bob McNally spoke of their Washington correspondent Joe Matthew on Bloomberg Sound on Catch the program weekdays at five pm Eastern on Bloomberg Radio and checking crude prices right now, and I'm ex screwed. Oil is a four ten percent and eighty three dollars fourteen cents of barrel Brent is at ninety eight cents. Finally, Karen criticism of the PIMCO Total Return Bond Fund from the man who created it. We're talking about Bill Gross, who

was ounced it from Pimco. Gross says many of the funds that bear the name are failing to live up to their mission after suffering heavy losses this year. Gros says, instead of helping the cushion the market downturn. They have clung to their benchmarks too close, Lee, essentially becoming quasi index tracking strategies. SMP future is right now, a little changed up two points now futures down one. Nasdaq futures are higher by thirty one points. Send your treasuries down

eleven thirty seconds. The yield four point zero five percent. Local headlines and a check of sports. Up next. This is Bloomberg five oh seven on Wall Street, forty three degrees in Central Park, out of crash southbound New Jersey Turnpike truck lanes at exit seven. More 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. Mid Terms that just a few weeks away, and now another race that Democrats once thought was a

slam dunk could be in play in New York. Republican Lee's Elden is in a statistical dead heat with the Democratic governor Kathy hokel Bore from Bloomberg's Denise Paula Greeni, Michael, it kind of all depends on which poll you want to believe at this point, because the new Quinnipiac Pole shows hopelessly narrowing to just four percentage points her campaign in those says this Quinnipiac Pole undercounted likely Democratic voters.

Former President Trump recently endorsed Zelden, and the Quinnipiac Pole shows Zelden has a solid lead among independents. The Long Island congressman also has gained in a real clear average of polls, but Hocal still leads by close to ten percentage points in a five thirty eight pole average, and recent Sienna and Marist College poles show her ahead by even more. Michael, thank you. Denise. Georgia, with several high profile races, has set a record on the first day

of early in person voting. More than a hundred thirty three thousand votes were cast Monday, and eight seven increase from the first day of early in person voting in twenty eighteen. Tens intended to provide temporary shelter to migrants open today in New York City, the first of series of makeshift centers to house and influx of tens of

thousands of Central and South Americans. The new relief center, located on Randall's Island, is intended to house and provide food, water, medical care and COVID test when migrants for to arrive in New York. Zach Iskol is the Emergency Management Commissioner. But people get off the bus, report authority. We have a very limited amount of time, about forty five minutes from the power where we are figuring out what people's immedia, the medical needs are. There will be a ten pm curfew.

Former President trumpet scheduled to sit for a deposition and answer questions under oath from attorneys for E. Gene Carroll, a former columnists at L magazine. Carroll has sued Trump for the faminger when he denied her rape claim from the ninet nineties. Global Name is twenty four hours a day on air rand 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 Naked, all right, Michael, Thank you, five o nine on Wall Street Time for the Bloomberg Sports Report, brought to you by Try State Autie. Here's John Stashower, Thanks to Athan. The decisive Game five of the l the s rained down byday night at the stadium played yesterday afternoon and decided early on. The Guardians made this somewhat surprising decision to start Aaron Savali. The Yankees had tee off on him twice in the

regular season. He faced only five batters, got only one out, gave up a John Carlos Stanton three run Homer, and the Yanks were on their way to a five to one went over Cleveland. Aaron Judge also Homer, and then the Yanks decision to start Nester Cortez on three days rest. That worked well, so the Yanks able to come back from the two games to one deficit. And now it's on to Houston with Aaron Boone's team playing game one of the ALCS tonight challenges. We're facing a great team,

you know. Uh, as far as the quick turnaround, we'll be fine. I mean, that's that's baseball. We do that all the time. You know, We'll walk in there with some confidence. Um, we know, we know they're a great team and rested and ready, and um we look forward

to the channel. Three times the Astros have ended the Yankee season, in two thousand fifteen wild Card game and in the ALCS in both two thousand seventeen and nineteen Yanks star Jamison ty Own tonight of the Astros start Justin Hurlander, Game one of the NLCS and San Diego fewest hits ever in a postseason game. The at He has had three, but two of them were solo homers the Padres and only one hit. The Phils won to nothing. They're now six and one in the postseason. NBA season

underway home wins by Boston and Golden State. Nick's open up tonight in Memphis, the Nets home from New Orleans. Devils and Islanders both one at home. The Cult Jim Ers the first NFL owner to say publicly there is merit to the league, removing ownership from Washington's Dan Snyder, John Stashi Allard Bloomberg Sports Nathan all Right, John, thank you. SMP future is moving a touch higher now. They're up five point. Staff futures up six dance stack futures leading

the games this morning, up thirty seven points now. Tenure treasury is down thirteen thirty seconds. Yield four point zero six percent. Yield on the two year four point for eight nymex crude is higher by nine tenths per cent, up seventy three cents eighty three dollars fifty five cents barrel. The President Biden expected to announce another strategic all released later today. Netflix shares surging in the pre market, up nearly thirteen percent on earnings. We'll talk about it next

with Bloomberg Quick Takes Alex Webb. This is Bloomberg. Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the autie model you've always wanted. Visit your local price state autie dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Take. This is a

Bloomberg Business Flash and I'm Karen Moscow. European stocks are slipping in US Stock Index futures are higher after giving up gains on worries about inflation and a looming recession. The pound is falling afy UK inflation rose faster than economists we're looking for, and we checked the markets every fifteen minutes throughout the trading day on Bloomberg. Right NOWUSNP futures up four points down, futures that will change, Nastack

futures up thirty four. The decks in Germany's down a tenth of a percent ten, Your treasury down thirteen thirty seconds. You have four point six percent, and the yield of the two year four point four eight percent. Nin Max Screwed oil is up one percent of eighty four cents at eighty three dollars. Sixty six cents of barrel comexs go down six tenths per cent or ten dollars at sixteen forty eight. Announce the euro point zero against the dollar British found one point one two seven four and

the end one forty nine point four three. Look at a bitcoin this morning, lower down seven tenths percent at nineteen thousand, two hundred dollars. Today we are watching four reports on housing starts and building permits at eight thirty Wall Street time, and the Federal Reserve at least as its page book at two and tests among companies schedule to report earnings today as a Bloomberg business flash. Now here's Michael Barr with more on what's going on around

the world. Muchael the morning. Good morning, Karen, President Biden, is opening the oil spick again. President Biden today will announce another strategic oil reserve release. Designs a hell bring down the price of gas. He could release another fifty million barrels of oil. A key Ukrainian city has been warned Russia is planning relentless attacks in the coming days. People in Curson are being told to get out now. In baseball, the Yankees are getting ready to face the Astros.

In the a l CS, New York beat the Guardians five ones to advance in Game one of the NLCS to Philly shut out the Padres to zip. In the opening night of the NBA, the Celtics and Warriors one. In hockey, the Devils and Islanders won, the Bruins 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

Lare and this is Bloomberg. Nathan alright, Michael, Thanks, It's five nineteen on Wall Street Line from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak. We had to peel our eyes away from what's streaming on Netflix this morning to see how the stocks doing it is surging with the streaming giant once again reporting subscribe growth, how about that first time this year? In fact, it's saded subscribers. Let's bring in Bloomberg Quick Take correspondent Alex Web to

dive deeper into these positive results for Netflix. And it certainly seems like investors see it that way Alex. With the shares up at twelve and two thirds percent in this pre market, So does this sort of negate the narrative that had taken hold so far this year that we've hit peak streaming. I don't know if it negates it fully. You know, the stock is, even with that anticipated twelve percent bump, is still down some sixty from from its peak in November last year. But it is

good news for Netflix investors. This has for a long time invalued as a growth stock. So if they're not growing, then investors struggle to know how to value it. The story does? They seem to be a lot of it focused on this new ads here that they are introducing. And not only does that help them add new it has so three purposes. Fundamentally, it helps them ads subscribers

at a lower cost, of the subscriber. The actual revenue they can make from that subscriber is potentially more than they make from their current basic tier, because they could be adding five or six dollars a month in advertising revenue for each subscriber. And thirdly, it just reinvigorates the growth story that then like should drive the stock if

they're pretty successful. How does that position Netflix though against some of its competitors that some of which have already been experimenting with or fully embracing a ad supported model. It's certainly it gives them a little bit more of a buttress. The big challenge is going to be how they execute this because the others who are doing this, if you some people have been doing it for a long time. You think about there are some entirely ad

funded streaming services. They call them f A s T Fast Free ad supported Television, which is a far as I can concern, just television. Um, they have been around for a while, but they've also built out the ads infrastructure. Think about Disney, which obviously owned CC fastpital so Hulu. They've got a huge advertising network because they're also an ABC and ESPN and plenty of other classic television stations. Besides, so Netflix is starting from nowhere. It's working with Microsoft

and a few others. Microsoft also not massive in this space in terms of video streaming ads. So how it executes is going to be the big question to see if it can get close to the six dollars fifty that Hulu makes and ads per subscriber. What about the content race? Does Netflix still have an advantage there? I mean, they talked in the earnings call about some of the successes they've had with the latest season of Stranger Things and even with some of the non English speaking content

that they put out there. Where is Netflix when it comes to the content race? Well, I mean, actually the challenge and Netflix has is that it doesn't have an advantage, right because it doesn't have the catalogs that the established, you know, traditional broadcasters have. It doesn't you know, have a back catalog stretching back half a century or even

full century. But it does have its ability to spend quite a lot of capital on new shows, and there had been something of a fellow patch, partly to do with the virus and inability to make as many shows they've wanted. There are a lot of these films and productions now coming, you know, being released, particularly in Asia, which is a huge growth opportunity for them. They've really doubled down on their career content. Of course, um you know,

we know about the big hits. They've already had their They've got another one which came out in the most recent chorder called the Extraordinary Attorney Woo. These are shows that helped drive growth in markets where they are not as well penetrated as they are in in the US. Just about thirty seconds left here. But it comes to putting out that can't I mean read Hastings mentioned that the currency challenges could be a head wind as well.

How big ahead win could that be? I mean they've said in the fourth quarter it's going to be a challenge, that it should get a little bit better in the first off next year. It is interesting that they feel they need to make these comments. Were in the past, you know, that was probably stuff around the edges that didn't matter so much. So it does speak to the fact that they're not it's not all plane sailing just yet, that things remained a little bit straightened, but at least

for now. The shares are moving higher by twelve point six percent following a return to subscriber growth two point four million new subscribers added in this latest quarter. Alex Webb of Bloomberg Quick Take as always great to get your insights on what's happening in the tech space. Looking ahead to the market open this morning, future is looking for a little bit of direction now. S and P

futures are a little changed up two points. Now futures back in the red, but not by much, down thirteen points. Nan stack futures are higher by twenty seven points, so pulling back on some of the earlier games in the pre market session. Ten your treasuries down twelve thirty seconds for yield of four point zero five percent. This is Bloomberg Bloomberg eleven three oh weather sunny, breezy, mid fifties today. We're gonna start to warm up just a bit as

we had through the rest of this week's sunshine. Tomorrow upper fifties, low sixties by Friday, silly now forty three degrees. Broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one oh six one to San Francisco, Bloomberg M sixteen to the country Sirius XM to the one nine team, and around the globe to the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak and it's five

thirty on Wall Street. Good morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg Daybreak is brought to you by SEI. Built on advanced technologies and fifty years of innovation. SEI offers asset Managers are comprehensive and flexible operations outsourcing platform. Go to se i C dot com slash managers. Well, we're 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, the s n P five hundred has rallied two straight days to start the week. So have we seen a bottom here? Shares Chief investment strategist Eva Ato says no, but rallies like this could continue through December. It's hard to time at the bottom, but I would say we're closer to it than not, and I expect to see the market and the year higher. We might even see a Christmas rally by then. We'll see the Fed getting inflation under control,

and we spend inflation to drop next year. Eva Atos or the our Shares expects tech and healthcare stocks to bounce back as inflation cools. The rising stocks has been fueled by a solid start to earning season. Karen. It continued yesterday with Netflix, which added up better than expected two point four million customers in the third quarter. Githa Ranganathan covers Netflix for Bloomberg Intelligence. They're finally back to growth, and their guidance right now again pretty much in line.

And what's really encouraging to me about that four que guidance is that they say that they've really not baked in any of those add to your expectations, So there is potentially a lot of upside to that guidance as well, either wrong or nothing. With Bloomberg Intelligence says Netflix is set up for a strong fourth quarter well. Their songs in the move this morning include United Airline shares are up more than six percent, but the airline seeing fourth

quarter profit above estimate. Shares of Adobe ASO higher after the creative design software company reiterated its forecast for the current quarter. Still, Karen sticky, inflation is dampening sentiment. Minneapolis Fed President Neil cash Car says he expects the Central Bank to keep hiking rates as prices climb. The core services inflation, which is the stickiest of all, keeps climbing, and we keep getting surprise on the upside that core

keeps going up and services keeps going up. The problem for me with trying to say, hey, it's time to pause is we're not even sure that we've got rates high enough to push services inflation down. Minneapolis Presidential cash Car says the Fed could raise rates beyond four and a half percent if core inflation keeps rising and inflation

is also coming in hot in the UK. Nathan Consumer prices in Britain rose ten point one percent last month, driven by rising food prices, and futures are higher this morning. SMP futures are up about ten points down, futures of thirty eight, NASTAG futures of fifty two, the tenure treasury down twelve thirty seconds. He had four point oh five percent your local headlines straight ahead, this is Bloomberg. Thanks here in five thirty on Wall Street, forty two degrees

in Central Park. Still dealing with that crash south on New Jersey Turnpike truck lanes, Exit seven. Michael Barr has more on what's going on in New York and around the world. Michael, thank you very much, Nathan. New York City officials saying that an emergency center to house some of the migrants being bust in from border states is set to open today. The center will offer temporary shelter

in ten So on Randall's Island. The Humanitarian Relief Center will start taking single adult men this week, with facilities including laundry, meals, and access to international phone calls. Zach Iskell is the Emergency Management Commissioner. There are a lot of people who we are trying to link up with families and sponsors. There's a lot of people that are trying to get through another location. UM often the easiest way to get out of el passive for examples of

US dagas form. You've even had somebody that came to New York Emergency Management Commissioners. Zach Isskell says families with children are to be housed in a hotel. We've learned that Georgia voters turned out in record numbers on the first day of early in person voting in the state with three weeks to go before the November eighth election. More than a hundred thirty three thousand votes were cast Monday, and eight seven percent increase from the first day of

early in person voting. In twenty eighteen, Florida Democratic Congresswoman Valve Demmings faced off against RUPE Public con Senator Marco Rubio in their first debate for rubio seat on WPBF. The two sparred over abortion rights, Rubio defending his support for banning abortion with exceptions. Every bill I've ever sponsored on abortion, every bill I've ever voted for, has exceptions. Every one of them does, because that's what can pass,

and that's what the majority of people support. Security along the border with Mexico was also an issue. Val Demmings. I think we can do that with technology, more boots on the ground, and more people to process those who need to be turned back, those who are breaking the law from those who are in silent seekers. Pole show. Rubio has a slight lead over Demming's going into the

November elections. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts in more than a D twenty countries. I'm Michael bar This is Bloomberg Nathan. Thank you Michael on Wall Street. Time for the Bloomberg Sports Up. They brought to you by Tri State. How do Here's John

Stesshow all right? Nathan? Playing a game one day and another the next another city happens all the time, just not when it's the start of a new playoff series. Monday's rain out forceded so the Yankees having come back from the two games to one deficit in the A L d S, having one game five over Cleveland five to one behind the pitching of Nestr Cortez, home runs by John Carlos Stanton and Aaron Judge. After the game and the celebration, flew to Houston. Start the ALCS tonight,

Jamison Tyon against Justin Verlander. The Yankees trying to win the pennant and get some revenge on the Astros who won the ALCS from them in both two thousands, seventeen and nineteen. The Philly's keep winning last team into the postseason. They are six and one. They one game one of

the NLCS and San Diego two to nothing. The x met Zach Wheeler team and with two relievers on a one hit shutout Pills that only three hits but got solo home runs from Bryce Harper, who's homeward in three straight games, and Kyle Schwarber hit one nearly five hundred feet. The next soup for the season tonight in Memphis, nick debut of Jalen Brunson the Nets off Sea that had Kevin random Many a trade that ended up not happening.

The next tonight host New Orleans, first win for the Devil's four two over Anaheim Islanders beat San Jose five to NFL owners met in New York and the Colt Jim er Say weighed in on the lake trying to out in battle. The Washington owner Dan Snyder the league that that's the road we probably need to go down, and we just need to finish the investigation. But it's greatly concerning to me um the things that have occurred

there over the last twenty years. Also yesterday I reported shouting match took place between the two most high profile owners, Robert Kraft and Jerry Young. John Stashward Bloomberg Sports. Thank you, John. It's five thirty seven on Wall Street time for the Tri State Business Report with Bloomberg Citi's Pellegrini Trader Joe's being accused of illegally firing a Brooklyn employee in retaliation for union activism. That's according to a complaint from a

group organizing workers at the grocery chain. No immediate comment from Trader about the charge. New Jersey suing five oil and gas giants. The state claimed x On Mobile, Shell, Chevron, BP, and Conoco Phillips all concealed knowledge fossil fuels could have a catastrophic effect on the climate, leading to extreme weather that's battered the state. X on Mobile calls us suit a waste of taxpayer money. The push to grow startups

in Connecticut intensifying. Connecticut State Community College announcing the launch of free statewide small business and Startups seminars and San Francisco based cookies as f started by the Rapper Burner has grabbed its first New York City location. The Herald squarespace will sell close accessories and CBD products. BIS Journal

says upper floors will be used for cookies. You a training program for students pursuing cannabis careers with the Tri State Business from part time to East Pellegrini on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world.

I'm Steve Pok and X in Los Angeles. We're talking about the rebound in subscriber growth at Netflix, um Corney Donahoe on Karel Dan Dallas. Fewer Americans are planning winter vacations due to inflation. I'm John Donneger telling Hey, why w listeners at Philadelphia WAMWA is getting pushed back from suburban residents. Now. I'm Gina Servetti and for w c CEO in Minneapolis, I'm reporting that the head of the Minneapolis Fed does nazi a pause in interest rate hips

if inflation is still accelerating. I'm Denise Peligrini at on w TM in Cleveland. I'm reporting on why Ohio based Proctor and Gamble isn't stop to watch. Today. I'm Stephen Carol and Bloomberg d A B Digital Radio and London. We've been reporting on DK inflation jumping back into double digits with prices rising ten point one percent in September. And those are some of the stories our twenty undred Bloomberg journalists and analysts are working on. This morning, It's

five thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. The US Healthcaress them needs more nurses. Nursing schools aren't producing enough graduates, young workers are quitting, and older ones are retiring early. Some researchers estimate that one million registered nurses will retire by twenty thirty. To bolster the workforce, the U s should clear hurdles for

qualified international talent. Consider an estimated one hundred eighteen thousand immigrants with undergraduate nursing degrees who are in the US working below their skill level, many as low paid assistance, home health AIDS, and domestic health. Streamlining their recredentialing would help boost staffing in times of immediate shortage. Prioritizing placement

in underserved areas would also make sense. Tapping into the large pool of aspiring and qualified nurses already in the US would bring out of whack labor market dynamics back to reality. They would also save money and ultimately save lives. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or ope I n go on the Bloomberg terminal. This has been Bloomberg Opinion. Listen for Bloomberg opinion editorials

every weekday at this time. Terminal customers can read more at O P I n go. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the autie model you've always wanted. Visit your local tri state autie dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, bl Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg

Business Flash and I'm Karen Moscow. European stocks Little change West Dot Index futures are higher on a strong starter the earning season, the pound falling after UK inflation rose faster than economists. We're looking for you check the markets every fifteen minutes throughout the training day. On Bloomberg SMP futures up ten points, DEAL futures of forty four and ASDAG futures of fifty two. The decks in Germany is

that'll change ten. Your treasury down twelve thirty seconds. He had four point zero five percent yield on the two year four point four seven percent. Nine X screw oil is up one point two percent of ninety five cents at eighty three dollars seventy seven cents of barrel and COMEXS gold is down seven tenths percent or eleven dollars

twenty cents at sixteen forty four sixty announced. The euro point zero against the dollar, British found one point one two six five and the N one forty nine point four seven and bitcoin is down seven tenths percent at nineteen thousand, two hundred dollars. That's of Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. Russian strikes on energy utilities have left more Ukrainian villages, towns

and parts of two cities without power. The overnight bombings further Zitan and energy squeeze on Ukraine. That threatens misery for millions in winter. Today, President Biden is expected to authorize the release of fifteen million more barrels of oil from the nation's energy stockpile in an attempt to bring down gas crisis. And baseball, the Yankees are getting ready to face the Astros and the a l c s. New York beat the Guardians five ones who advance in

Game one of the NLCS. The Philly shut out the Padres to zim opening night of the NBA. The Celtics and Warriors won. In hockey, the Devil's and Islanders won, the Bruins lost. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist analysts in more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Thanks Michael. It's nine on Wall Street Life from the

Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak and st. Dweck is with us to talk about this market. Chief investment officer at Flow Bank ste It's great to speak with you, coming off two straight days of gains for Wall Street stocks. Pretty solid gains as well. Has this market found bottom? Oh? Yeah, that is really the question everyone is it would like to answer. Um, I think it's too early to say that we've found a bottom

or the bottom. A bottom is more likely we have seen a little bit more of a consolidation and yields. I think we've seen already the retreats this morning or since last night, and some of that is due to inflation in the UK and the yields that are rising in the UK and pulling them upwards elsewhere as well. Uh. And so until we start to see a coming in the yield is going to be difficult to be certain that we've reached the bottom. But it does feel like

we're at more interesting levels. More interesting levels an interesting way to put it there. How much higher do you expect yields to go? Here? We just heard once again from another FED speaker, former dove now turned a pretty solid hawk, Neil cash Cary saying rates might have to

go higher than four and a half percent. What could that mean for yields a stee Well, at this point we're already pricing in somewhere between four and a half and five percent, So I think, um, and we've heard from a couple of different speakers, including Bullard on Friday, that the Duck plot doesn't need to move at this point. Um November. I think we'll stay very hawkish and we get those December we get fifty seventy five, depending on the couple of inflation data points we get until then.

But the market is now hoping is that we'll have some kind of pause in. We'll need to have inflation coming down over the next couple of months for that to happen. So I think the risk is maybe pushed back a little bit because we're already pricing in all of the rate hikes that are coming at this at the end of this year. How are you viewing earning season so far? We're a little bit early into it. It's coming, I think a little bit better than a

lot of analysts had expected. You mentioned interesting valuations. Is there anything in particular you're looking at. Well, we've we've certainly had better numbers than expected. In some cases, we've had sort of slashed guidance before, so it's, you know, less bad than feared or better than what they had announced.

But overall, uh, some of these numbers are still pretty encouraging and it shows that the US economy is holding up, So I think there it's a positive in the sense that people really thought guidance was going to be slashed very aggressively during the quarter. As you say, it's still

early days, but it doesn't look like it's happening. At the same time, we are going to need to have a little bit of toughness in consumer spending and some of these labor market expectations for the said to be able to ease off the pedal over the next few months. On the last minute, here, ste, where do you see opportunity in this market? You know, we'll have to see the next couple of weeks. We could see a consolidation. I do think we're going to get some improvement into

the end of the year. I do think we're going to have have to have some kind of pause just for the FEDS to see now it doesn't mean they stop and they go back to tight to to easing, but they might not be able to keep hiking seventy five basis points for the first quarter or second quarter of three. So opportunities I think still in tech and generally UH in that equity market, I think it's starting to be interesting to buy these dips into the end of the year. All right, as always, st great to

have you on with us. That's Steedwag, chief investment officer at Flow Bank, with us this morning. Karen Nathan. It is five fifty three on Wall Street. It's time for the Bloomberg the Law Report. It has brought to you by American Arbitration Association. Business disputes are inevitable. Were as alf Anster with the American Arbitration Associate, the global leader an alternative dispute resolution for over ninety years. More at a d R dot org. Let's get to the legal

stories we're watching this morning. From Bloomberg's Jeff Bellinger. The Internal Revenue Service released its annual inflation adjustments to the tax code. The changes are for the twenty three tax year and will generally apply to returns filed in four The American Automobile Association is suing Triple A Truck Agency,

a truck insurance company, for trademark infringement. Colorado was drafting guidance for a first in the nation refundable tax credit to encourage employers to offer eco friendly options for commuter transportation. Bloomberg Law Everything you need all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more at Bloomberg law dot com. All right, Jeff, thanks, and

now another legal story we're watching. The copyright clash over Andy Warhol's series Silk Screens of Prints is a case that could reshape the fair used defense to copyright infringement, and justices seemed divided as they grappled with the photographer's claim that Warhol violated her copyright by basing his images

on her photograph of Prince. For more of Bloomberg, stum Grasso speaks to intellectual property litigator Terence Ross, a partner at Kennan Mutchen Rosenman, is the question whether Warhol's work transformed Goldsmith's photograph. To understand what's going on here, what has to understand a little bit about the fair used defense. The fair used defense that says courts should consider four

non exclusive factors. The very first factor, and which widely regarded as the most important, is for the court to look at the purpose and character of the secondary use. In a very famous decision, second serge that that's the key to this one factor is whether or not the secondary work somehow transformed the original work and the subribe it has since bought into this transformative use test. I

would say up on appeal here Spring courts. The question really is what is required for work to be transformative? How do you transform a work in such a way that the fair use defense applies. There are many transformative uses that do not constitute fair use, and so the key here at issue for the Spring court is to give some sort of guidance to the lower courts. Both sides say the potential stakes here are enormous, not just on the art world, but on publishing, on movies and

so on. Are they exaggerating or do you agree with that absolutely? This is going to be one of the most significant decisions with respect to secondary works of all times in Anglo facts and law. At issue is control of the original work by the artists for the original work, and to the extent that this is held to be not a fair use. I think the critics are correct that that will meaning that the original artists have much more control over their works. The question is whether or

not the next step in that argument is correct. Does giving the original artists more control over the work inhibit future creativity? And as we heard in the order argument, there was a lot of discussion of licensing. Doesn't the right to license these original works to make changes allow you to still engage in level of creativity. Look, you had very wealthy entities involved here, You had Vanity Fair,

Andy Warhol. They clearly had the wherewithal to license the photograph again from Lynn Goldsmith in order to do these sixteen colorized folk screens, but they deliberately chose not to. So, Yes, there is going to be a change in the bargaining power amongst artists as to secondary uses of original works. And that's Terence rossa partner at Kennon Mutchen Rosenman, speaking with Bloomberg student Grasso. Catch more of that interview, plus analysis of the latest legal news by subscribing to the

Bloomberg Law podcast. Are downloading the show at Bloomberg dot com slash podcasts. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at v law Go. SNP futures are up seventeen points this morning. Down futures of A D two and NASDAG futures of eighty three. Tenure treasury is down twelve thirties seconds held four point oh five per cent, held on the two year four point four seven percent

still ahead. On Bloomberg Day, BREA, I can check on the business headlines and all the news you need to start your day, and this is Bloomberg