Bloomberg Daybreak: October 20, 2022 - Hour 2 (Radio)

believe they have enough evidence to George Donald Trump. Plus doctors are concerned about children and R s V. I'm Michael bar More Ahead, I'm John Stashtown Sports. The Yankees lost Game one of the Alcs and used to the

Nixon Nets. Both lost their season opening. That's all Train ahead on Bloomberg day Break on Bloomberg eleven three, on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Sirius XM one nineteen and around the world on Bloomberg Radio dot Com and via the Bloomberg Business app. And Good Morning.

I'm Karen Moscow. I'm Nathan Hager Bloomberg Daybreak is brought to you by B and Y Melon's Pershing Learned why the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent, and manage risk at Pershing, dot com S and b futures are lower this morning. It is six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, SMP

futures are done about twelve points down. Futures are little change. NASDACK futures down seventy or about six tenths of a percent. Ten year Treasury down one thirty second yield four point one four percent, and they yield on the two year four point five eight percent. Nathan, we'll hear in. This morning's drop in futures comes after stocks snap the two day winning streak on Wall Street. Treasury yields are trading

your multi year highs on Mountain. Concerned that a hawk ish Fed will raise the odds of a hard landing market veteran then it's Artman says, don't expect the Fed to change course anytime soon. So when once the Fed begins to change its policies, it moves rates farther and lasts longer than anybody ever wants to anticipate. When they when they ease monetary policy, they take rate slower than

anybody believes for a longer period of time. When they tighten, they take rates higher for a longer period of time than anybody wants to anticipate. I think it's going to be at least until late in maybe four before the long awaited pivot occurs. Dennis Gartman, the former publisher of the Gartment Letter, thinks stocks will remain in a bear market for some time. Well to be another busy day for FED speak Nathan, with four different officials talking at

separate events yesterday. Chicago FED President Charles Evans said he's hopeful the current path for interest rates will be enough to bring down inflation. Wages are going up, and that's not that's not a bad thing, but if it gets caught up in costs price uh, you know, spiral, that that would be bad. And so making sure that we've got monetary policy at a sufficiently restrictive dance so that we're not inducing inflation. We're trying to get it down.

Chicago FED President Charles Evans and his colleagues have aggressively raged benchmark interest rates this year from nearly zero to just above three percent, and expect another big rate increase in next month's meeting. Karen. We spoke about the move with St. Louis Federal Reserve Bank President James Bullard. The November meeting has been more or less priced in the

market at at the seventy basis point number. Again, you know, I think you do want to wait till you actually get to the meeting, see what the situation is there. The December meeting is a little farther away. We will have more data at that point. St. Louis FED President James Bullard made the comments in an exclusive interview with Bloomberg's Kathleen Hayes here. More of that conversation coming up in minutes here on Bloomberg Daybreak, I'll we turned to

earnings now, Nathan. We get results from nearly two dozen companies in the S and p fon hunry today, disappointing numbers from Tesla after the bell has shares down almost six perst and this morning sales fell short of estimates, and that's being blamed on delivery and production bottlenecks still CEEO Elon Musko says demand for his company's cars remains strong. Looking forward to a record breaking pupil so it really, you know, knock on wood, it looks like we'll have

an epic end of her. Elon Musk said Tesla could repurchase five to ten billion dollars of its shares, subject to board approval and review. The stock has lost more than a third of its value so far this year. It's different story this morning at IBM Karen that stock is up about three percent. Company reported better than expected sales and affirmed its cash flow forecasts. Analysts say that's a signed Demand for software mainframe computers and hybrid cloud

services remains steady and Asia. Overnight, Nathan stocks fell that came off their lowest levels. That's after Bloomberg News reported China is considering relaxing quarantine rules. We get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliette, Good morning Nathan and Karen. The off show you one gained from record lows against the gre back on the news. Well,

China CS three hundred erased earlier losses. Chinese text talks in Hong Kong also paired earlier steep losses on news China is holding emergency talks with chip firms after US curbs. The Ozzy dollar declined as hiring down under almost stalled in September, and Japan's benchmark bond yield climbed above the Central Banks policy ceiling, prompting monetary authorities to announce an unscheduled bond purchase to rain it back in in Singapore.

Juliet Sally Bloomberg Daybreak, Juliet Banks and Europe. This morning, it's all about politics, UK Prime Minister of Liz Trust as government could be on the brink of collapse. Let's go to London and get the latest with bloombergs You and Parts. Good morning You, and good morning Nathan and Karen. It has been a chaotic twenty four hours at Westminster. One of the most senior members of the British government has been fired. As she went, she criticized the Prime

Minister and accused list Trust of breaking key pledges. Later, dramatic scenes in Parliament with the ports of lawmakers man handled into voting with the governments. Just weeks after she took over. Many members of her own set the policy are openly saying they want Liz Trust to go. Who would replace a is another question in London. Immuno sin by Daybreak very new and thanks now to the latest in the war in Ukraine, President Vladimir'szlenski is now urging

people to use as little electricity as possible. He says Russia has destroyed much of the country's power infrastructure with Iranian made explosive drones. Ukraine is assembling its own army of drones to monitor the front lines. It's enlisted actor Mark Hamill to help bring it together through Ukraine's United twenty four fundraising arm The Star Wars actor tells Bloomberg President Zelenski asked him to join the effort very simply. Ukraine needs drones, and you know they define war outcomes.

They are they protect their land, their people there, They monitor the border, their their eyes in the sky. And Mark Hamill's spoke of our Washington correspondent Joe Matthew on Bloomberg Sound on Catch the show weekdays at five pm Eastern on Bloomberg Radio SMP futures right now are down ten points. Dal futures are higher now up seven. NASTAC futures are lower by sixty nine points ten. Your treasuries down two thirty seconds. The yield four point one four.

Straight ahead your latest local headlines in the check of sports. This is Bloomberg six oh seven on Wall Street, forty five degrees in Central Park, still dealing with the crash westbound Jackie Robinson Parkway Union Turnpike. Michael barrs here with Warre on what's going on in New York and around the world. Good morning, Michel, Good morning Nathan. A group of Justice Department prosecutors believe there is sufficient evidence to

charge Donald Trump with obstruction of justice. Bloomberg sources say they are building other cases as well. Sources say they believe all charges should be complete by the end of the year. Former President Trump has finished his deposition in the case brought by a woman who claims he sexually assaulted her and then defamed her online, saying she was a liar. Trump has claimed the entire defamation lawsuits should be dismissed because he was president and was immune to charges.

In New York, Trump once again said E. Gene Carroll was lying and quote not his type. Former Vice President Mike Pence said he would not necessarily vote for Donald Trump if he runs for president in twenty four Pence has been visiting early voting states, fueling speculation he might run for president. At an appearance at Georgetown University, a student asked Pence if he would vote for his former

running mate in the next presidential election. If Donald Trump is the Republican nominee for presidents in Twente treunch, fool, will you vote for him? Well, there might be somebody else I'd prefer more. The former Vice president predicted Republican wins in the mid term elections, but took veiled jabs at candidates who run on opposition to Democrats without offering

policy alternatives. Hospitals and that least twenties six states and the District of Columbia say they are struggling with an early surge in pediatric respiratory illnesses like r S, V

flu and the common cold. Connecticut Children's Hospital physician in chief Dr. Je Salazar says two years of COVID pandemic measures may have left kids immune systems unprepared for the usual respiratory viruses, which has dramatically altered the normal epidemiology of this virus RS specifically, and the other viruses rhinovirus, adnavirus and the introvirus which have been We're more severe than they normally are. Dr Salazar says the timing is

off generally. This is something seen in late winter early spring. 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 bar this is Bloomberg, Nathan, Thanks Michael, six o nine on Wall Street. Time for the Bloomberg sport stuff they brought you by Fry State OUTI. Here's John Stansharks. All right, Nathan, the Alcs underway and Houston. Good start for the Yankee.

Seconding home run for Harrison Vader, who kids you just to provide surprising power, his fourth homer of the postseason. Astros tied it up. Game one was one one, sixth inning OH two and Garry L. Cranks it's left. Stanton is going back at the wall looking up silet UTAs and the Astros leading to the one they'll pitch to McCormick. It's ash rise is pretty deep to right center. Touch is going back at the wall. Look it up. It's a good bye. Chas McCormick ghost teach the Astros go up.

K b Amy both homers off Clark Schmidt inning later, Jeremy Painia homer off Frankie Montas Astro's one four to fromain unbeaten the postseason. Justin Verlander gave up the Bader home run, but only two other hits. He struck out eleven. The Astros of the team struck the Yanks out seventeen times. Game two is tonight. Luis Sevareino on him on for

the yankst San Diego. The Phillies, having won the NLCS opener to nothing, led for nothing, but the Podres came back to win eight to five or five on fifth and ain't one. Soto had a big hit, so did Padres Capcher Austin Nola. He was facing his brother Nix and Nets lost their openers in different fashion. Tight game in Memphis after the Knicks rally from nineteen down, but the Grizzlies one in overtime one fifteen to one twelve.

John Moran thirty four points. Julius Randall led the Knicks with twenty four gruff opener for R. J. Barry shot three of eighteen and in Brooklyn and Kyrie Irving was six of nineteen. Pelicans all over the next one thirty to one oh eight. Zion Williamson back from New Orleans. He scored twenty five. John's dash are Bloomberg Sports nank okay, John, thank you? Has it be? Futures down down thirteen point staff futures lower again, They're down fifteen points. Dance next,

Futures leading the declines. UH down seventy nine points now for a drop of seven tenths of one. The ten year treasuries down three thirty seconds, yield four point one four percent yield on the two year right now four point five eight. You're listening to Bloomberg Daybreak. The Bloomberg Sports Report was brought to you by Audie. Don't let

someone else drive off in the Audi Model. You've always wanted to visit your local price State Audie 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 at and at Bloomberg Quick Tape is

a Bloomberg business flash, and I'm Karen Moscow. European stocks and US DOT Index futures are lower amid rising bond yields, with investors concerned that strong inflation and hawkish monetary policy will further slow the global economy. We check the markets every fifteen minutes throughout the trading day on Bloomberg. Right now, U s and P futures are down about thirteen points down. Futures are little changed, and as DAGG futures are down

seventy six, down about seven tents of upper set. The decks in Germany is down about eight tens of upper cent, and your treasury down to thirty seconds yield four point one four percent, the yield on the two year four point five eight percent. Nimex screwed oil up one point seven percent of a dollar forty three at eighty six dollars ninety eight cents of barrel comic scold up two tens per cent or three dollars sixty cents at sixteen

thirty seven ninety ounce. The euro point four against the dollar, British found one point one two oh one and the end one forty nine point eight four and bigit coin is down a quarter percent. It's at nineteen thousand, one hundred fifty dollars. 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. Russia has declared its intention to increase its targeting of Ukraine's power, water, and other vital infrastructure in its latest phase of the nearly eight month old war. Ukrainian President volodimir's Lensky says that Moscow's forces have the story thirty percent of the country's power stations since October ten. In baseball, the Yankees lost Game one of the ALCS against the Astros. In the NLCS, Padres even the series at a game of piece after

beating the Phillies eight five. NBA mix nets lost their season openers the Wizards. One 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. Nathan. Thanks Michael. Six nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and now we want to bring you our exclusive

interview with St. Louis Federal Reserve President Jim Bullard. Bloomberg's Kathleen Hayes sat down with Bollard yesterday for a conversation

about inflation and the FEDS rate hike path. They talked about the data the FEDS considering in its inflation fight, what's to come at next month's f o MC meeting, and why twenty three could be eight deflation every year let's listen in It seems like every time we get together there's something in the background, there's something big going on, and I would say this time it is the fact

that the latest inflation in data have been disappointing. You've done three hundred basis points of rate highs since March. The headline CPI is stalling out just over eight percent year over a year, core number continuing to rise, and the employment market still tight in terms of jobs and the economy not slowing down. So what's gone wrong? All those rate highs? What have they done? Uh? Well, I do think they will have an impact and in some ways have had an impact I would cite the housing

market in particular where it appears left. Uh, you know, increase in rates has has really changed the dynamics there. So that's someplace that I would say they are not long and variable legs there. You know, that market anticipated fed moves that before they were even in train the spring, and so that that's a place where we've seen impact right away. But you know, it's a big ship and it takes a while to steer the ship. And so

the housing market is not the whole economy. So it certainly isn't and it's certainly not the main one of the main things driving inflation. Now. Of course, prices have fallen, but our rents are important though they certainly aren't. They certainly aren't. And in fact, that's one reason why people are so worried about inflation staying high. Next here is that those rents are the way they are calculator, they're

gonna spread out over several months. Yeah, but we're aware of the legs and the calculation, and so we'll take that on on board and take a look at that. But yeah, you're right, the core measure of PC inflation is still on the high fours, and the Dallas Fed trim mean four point seven five or so UM, so pretty high inflation in the US, even if you try to trim out some of the more volatile components. So we're gonna have to get that turned around, moving in

the right direction back towards two percent. You know, there's an old actiment monitory policy, especially when you have inflation like this that's very high, that hasn't cooled off, that to get it under control, you have to get the funds rate above the rate of inflation. You're pretty far from there now. Another reason to think that maybe again that the tell of risks here is that you're going to have to do more. Some people are talking about

five percent and have been for a while. If we get driven to that, it will be because of the data. I mean, the markets are expecting inflation to fall. We've been expecting inflation to fall. I've been expecting inflation to fall, and it hasn't so far. But I think in the first half of three that's still the expectation. And so you will get to some point where inflation has come down some and and you might get to this situation

where the policy rates above the inflation rate. Is one of the reasons that you are still, you know, looking betting on this this inflation coming down is and not having to the rate move the rate a lot more restricted is because you're gonna stay aggressive with great heights right now. Uh, seventy five basis points uh in November, and then there's seventy in December. I know you don't like your prejudge meetings. However, if you look at how the factors are stacking up, is that a likely outcome

in terms of what you're going to vote for? The November meeting has been more or less priced in the markets. Uh at at the seventy five basis point number. Again, you know, I think you do want to wait till you actually get to the meetings, see what the situation is there. The December meetings a little farther away, we will have more data at that point. I don't want to prejudge exactly. UH. You know what I'd what i'd

support at that meeting. Uh. And then in I think we'll be closer to the point where we can run what I would call ordinary monetary policy or an uh A monetary policy where now you're at the right level of the policy rate, you're putting downward shround inflation, but you can adjust as the data come in in three and so I think up to now we've been uh, you know, we started off at a very low level. That's why we've moved so fast, so far, so quickly.

But at some point we'll get to a level that the Committee judges will be sufficient to put meaningful downward pressure on inflation. Then we'll be able to adjust from there. Not that there wouldn't be further adjustments, but they would be dated. They would be more based on the data coming in, as opposed to us trying to get off zero enough to some level that's reasonable. That was St. Louis FED President James Bullard speaking with Bloomberg's Kathleen Hayes.

You can catch the full interview on Bloomberg dot com or on the Bloomberg terminal. Right now, SMP futures are down eleven points. Now. Futures have been swinging between gains and losses this morning. Right now they're up by three points. NASDAC future is still lower, down sixty five points ten. Your treasuries down to thirty seconds, the yield four point one. This is Bloomberg Bloomberg eleven three oh weather, sunny, breezy,

upper fifties. That's all we'll get to today, low sixties, sunshine Tomorrow, milder Saturday, the hind near seventy degrees, low sixties Sunday with showers moving in right now forty four in Central Park. Broadcasting live from the Bloomberg Interactive Broker's studio in New York. Bloomberg E Living Free On to Washington, d C. Bloomberg On to Boston, Bloomberg one O six one, to San Francisco, Bloomberg nine sixty to the country Sirius XM Cho one nineteen and around the globe the Bloomberg

Business apt in Bloomberg Radio dot com. This is Bloomberg Daybreak six thirty on Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow, and we're just about three hours away from the open of US training time to the five Things so you need to notice start your day to you buy Interactive Brokers. Interactive Brokers charges margin loan rates from three point five eight percent to four point five eight per cent rates subject to change. Learn

more at ibkr dot com. Slash compare up first markets enter today after stock snapped a two day winning streaky Yesterday, concerns continue to swirl about hawk ish FED policy. Silver Crest head of Investment Policy Robert Teeter says timing will be everything. The timeline question, I think is in focus here and it's a matter of do we get inflation

under control? Do we get the Fed pausing before you start to see some of that pass through, whether it's lagged effects or otherwise, onto the consumer and onto earnings. And so that's really the race that's in place right now is which happens first, the break in inflation or a break in the economy. Robert Teeter with Silver Crust Asset Management says, if consumer spending says strong, it will help the Fed bring down inflation. And today I'll be

another busy one for FED speakers, Karen. Four different officials or at separate events today yesterday are Kathleen Hayes sat down with St. Louis FED President James Bullard, who indicated there's still no clue your timeline for a FED pivot. We started off at a very low level. That's why we've moved so fast, so far, so quickly. But at some point we'll get to a level that the Committee judges will be sufficient to put meaningful downloard pressure on inflation,

then we'll be able to adjust from there. Catch our full interview with St. Louis President James Bullard on Bloomberg dot com or on the Bloomberg terminal. The Fed gets another key data point this morning, with weekly jobless claims due out at eight thirty am. All Street Time. Let's turn earnings now, Nathan. Nearly two dozen companies in the U S and P five port today anytime shares a. Tesla down five and a half percent after sales game

insured of estimates. Still, CEO Elon Must said demand remains strong. Desmite bottlenecks. There were enough trains, there were enough car carriers. Do you actually support the wave? Has it got too big? CEO Elon Must said Tesla could repurchase up to ten billion dollars of it share, subject to board approval and review. It's a different story at IBM this morning, Karen, that stock is up about three percent after reporting better than

expected sale and affirming its cash flow forecast. Now we're in Europe today, Nathan, UK Prime Minister list Trust's government could be on the brink of collapse. Trust fired one minister over security breach, and two others were heard resigning before reserving that decision. There are growing calls from her party for Trust to resign immediately. And that's the five things that you need to know to start your day,

brought to you by Interactive Brokers. SMP futures are down seven points right now down, futures remain little change and nowsday futures down fifty one. Straight ahead your latest local headlines plus the check of sports. And this is Bloomberg Experience six thirty three on Wall Street, forty four degrees in Central Park, out of crash in the outbound lower level of the George Washington Bridge. And Michael Barr is here with more on what's going on in New York

and around the world. Good morning, Michael, Good morning Nathan. A group of Justice Department prosecutors believe there is sufficient evidence to charge Donald Trump with obstruction of justice, Bloomberg, said Baxter. As the story, prosecutors and FBI involved in the investigations further, Department of Justice feel there is now enough evidence to move forward with a case for obstruction.

Bloomberg sources say they are building other cases though as well, but are looking at all the angles before moving forward on them. The sources say they feel all charges should be complete by the end of the year, and if nothing else, they can proceed with obstruction. In San Francisco, I'm at Baxter Bloomberg Daybreak, former Vice President Mike Pence

more in conservatives against embracing populism in upcoming elections. In the speech at the Conservative Heritage Foundation in Washington, d C. Pence made some veiled critiques, apparently taking jabs at midterm candidates who rally around former President Trump's unfounded claims of

a stolen twenty twenty election. I think the American people are gonna be looking to looking to Republicans in these new majorities, and they're gonna be looking for results, not posturing, not just going on television shows and saying what's wrong with the decided to saying here's what we're for, here's what we're passing. Former Vice President Pence has been visiting early voting states, fueling speculation he might run for president.

President Biden is back campaigning again today, this time in Pennsylvania, where one race could decide which party controls the U. S. Senate next year. The President is heading to Pittsburgh Democratic Senate candidate John Fetterman will join him. In addition to the flu and COVID, there's another illness kids should be mindful of. It's called r s V. It causes running noses,

decrease in appetite, coughing, sneezing, fever, and wheezing. Yale You Health University Pediatric infectious diseases specialists Dr Thomas Murray says COVID has weakened kids immune systems, not because of the virus itself, but because kids have been isolated for so long. I think their new system just hasn't seen the number of viruses a typical child prior to the pandemic would have seen. And therefore, when you have five or six different IRUs, says, you can become sick with one right

after the other. Dr Murray says RSV is straining the hospital system. Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than twere journalists and analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg, Nathan. Thanks Michael. Almost six thirty six on Wall Street time for the Bloomberg Sports Up they

brought to you by Tri State out. He here's John Stenshawn all right, a for the Houston Astros in the America League Championship Series for the sixth year in a row that includes two a LCS wins over the Yankees. Astros made it to the World Series last year without the injured Justin Verlander. Back at age thirty nine, he had a brilliant regular season and in Game one in Houston, Verlander, when six innings allowed just three hits, struck out eleven

at one point six in a row. The Astros hit three solo home runs off the Yankee bullpen, and they beat the Yanks four to two. After Verlander left, the Houston bullpen added six more strikeouts, so they had seventeen for the game. And Aaron Judge well aware of how good the Astros pitching. He got a great staff of you know that's out the bottom. Um tell they got great arms out of the pen. You know that can are effected on both sides of the plate, righty's and

left ees. And you know, I starting pitchers that can work. You know, not only one two pictually, but you know mixing you know, three or four pitches. So it's uh, it's a tough matchup. That's you know, you want to play against the best. You want to compete against the best. So we got in front of us. Judge made a terrific catch in right field, saving a couple of runs, but the Yanks squandered some early scoring chances. They also at the time run on in the eighth Matt Carpenter

and Josh Donaldson in particular had rough nights. They combined to strike out seven times. Game two tonight, the NLCS tied at one. Padres came from four nothing down beat the Phillies eight to five. The next open the season in Memphis, trailed by nineteen, came back. A Cam Reddish three pointer sent the game to overtime. Reddish, at his best game as a nick twenty two points off the bench, but the Grizzlies one one fifteen to one twelve. John

Brant scored thirty four Nick said. Their home opener to Marrow at Barkley's, All Pelicans blew out the Nets one thirty to one. Oh Ay, Kevin Durant led Brooklyn with thirty two d Dash sports John thanks sixty seven on Wall Street. Time to take a look at stock some of the names moving in the pre market. Lots to get to this morning with Bloomberg Radio on TV markets correspondent Creety Goopta, including A T and T just coming in with better than expected earnings. Creaty, Yeah, and a

beat that's showing up in the stock fairly quickly. Let let Tiger here is just the letter t uh. The shares popped up over two percent. They've not paired that gain to two percent. But to your point, Nathan, they did beat those earnings. And this is such an important time because last quarter, on the previous course, A T and T and Verizon, we're both talking about kind of a slowdown in consumer demand. This time around A T

and T showing a little bit of resilience. They're saying that they saw not only a profit beat, but a subscriber beat as well. That's becoming the number three US wireless carrier. And get this, they added nine hundred and sixty four thousands subscribers in the third quarter of the estimate was only nine hundir teen thousand, So actually doing better at a time when perhaps a lot of people

are pulling back. Yeah, I've still gotta call people, right, We still got to talk about Tesla as well, because those earnings did disappoint and the shares are are getting punished for it. Do people still call people, Nathan, I don't know that. I don't think I've been on a phone call texts. Oh they do do that. That's true, that no one writes letters anymore, almost speaking of a slowdown in demand or at least a little bit of scare in demand. Tesla shares t s l A down

about five and a half percent. They actually did miss their earnings, and Elon Must specifically said the demand is quote a little harder to come by, so almost a pretty similar theme that you are seeing when it comes to a T and T shares for example. But Tesla, what's interesting here is a massive heavyweight in the s MB five dred in the nastack as well. Their third core sALS. They did rise about fifty percent, but the

estimates were high. The expectations were high. To me, what there is crucial here is that they're expecting to come up just short a fifty percent of delivery growth. So the growth is still there. The pace of growth is the problem, and that's what is pressuring the shares this morning. And I want to go to Alcoha here a A is the taker. This is the aluminum giant reporting worse than expected results in the third quarter. I remember this

is something you're seeing in the commodity space broadly. Those shares are thinking about ten percent in the pre market. I'm gonna go the speed around here because it's just so many to get through. Ally, financial, we talked about this a little bit yesterday. This is one of the largest auto lending companies in the country. They missed their

earnings yesterday. Today they are downgraded by Morgan's down Stanley a l l wise or tickers down about two and a half percent in the pre market, where is the only downgrading the company to an equal weight from an overweight based on those third quarter results. Essentially, they warn Nathan that they actually have to are worried about building out their credit provisions because they think auto lending is going to collapse in America once again, because of that

overarching theme that things are going to get bad. A recession is on the horizon. Yeah, and lots more to get to as we get through this earning season. I think we have quite a few lightning rounds, aren't we. With Bloomberg Radio and TV Markets correspondent Creety Goop, does we keeping on what's happen pending in the pre market? Stocks as a whole turning mixed. SMP future is now little changed. Dow futures are higher now by fifty points. NASAC futures still lower, but not quite by as much,

down thirty three. You're listening to Bloomberg Daybreak and 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 to 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.

A Bloomberg business outland at Bloomberg Quick Take, He's a Bloomberg business lash and I'm ter in Moscow, and futures are little change. Now we go to the first word breaking news dash for today's morning call. Here's vill Maloney, Bill, Good morning, Hey, good morning, Karen. US futures are trading

mixed right now. Death futures up sixty six points. Sesapes are a little changed and as that futures are lower by thirty the US ten yeld at four point one one percent, gold is up four oil is climbing, and

bitcoin is down by point two percent. Hong Kong fell one point four percent overnight, while eup markets are trading mixed this morning and back in the US on the economic Frinday thirty initial jobs claims the Philly Fed and at ten o'clock existing home sales after the Bellas night TESTA sales missed estimates, shares it down five and a half percent pre market, and IBM sales toped estimates regarding earnings. This morning, a T and T profit and subscriber numbers beat.

In other news, Elon must says he's obviously overpaying for Twitter and a deal news Philip Morris raised it's offered

by Sweetish Match to fifteen point eight billion. Wrapping things up, Northern Trust was cut to hold joy Jabank ally Financial cut the equate at Morgan Stanley and Oracle was raised to neutral over Red Piper Live from the first Breaking News deskm B Maloney, Karen, all right, Bill, thank you and to hear live breaking news over your Bloomberg type squawk on your terminal s q U A w K and that's a Bloomberg Business Flash. Now here's Michael Barr

with more on what's going on around the world. Michael Karen, thank you very much. Starting today, Russian President Putin has declared martial law and the four border regions of Ukraine and Russia illegally annexed, giving authorities they're more power to crackdown on the population. This has Ukraine braces today for four hour blackouts in response to recent Russian missile and drone attacks on the country's power infrastructure. Liz Trust's UK

premiership is on the brink of collapse. Tory MPs openly said she should go a tumultuous day in Parliament. Yesterday saw Trust fire as Senior Minister. In baseball, the Yankees lost Game one of the a l c S against the Astros four two. In the NLCS, the Padres even the series of the Game of Peace after beating the Phillies eight five. In the NBA, the Next and Nets

lost their season openers the Wizards. One Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist analysts in more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg. Karen all right, Michael, thank you. It is sixty nine on Wall Street. Returned to news and science and Technology now with a Bloomberg and j I T STEM report brought to you. Buy New Jersey Institute of

Technology n 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. Here's US making news and science, technology, engineering, and math. Bloomberg News has learned Chinese officials are debating whether to reduce the amount of time people coming into the country must spend in mandatory quarantine. Sources say bureaucrats are looking at cutting the quarantine period to two days in a

hotel and then five days at home. Currently, China requires ten days of isolation. The Bill and Melinda Gates Foundation is making grants of more than a billion dollars as part of a sweeping national plan to improve math education the next four years. It's goal to help students land well paying jobs. Given research that shows the connection between strong math skills and career success. The foundations said that to put more money into math. It will cut grants

to other subjects like reading, writing, and the arts. And this may not be a surprise, but it's costing you more money for your early morning meal. In England, a breakfast which consists of sausages, bacon, eggs, bread, butter, tomatoes, mushrooms, milk, tea and coffee is more expensive than a year ago.

According to the latest Bloomberg Breakfast Index, coffee is about twenty two percent, milk has lived from a year ago well, butter has increased twenty seven percent, and eggs have gained twenty three And as the Bloomberg and j I. T Stem report, Nathan's if there weren't enough turmoil in the UK, thank you, Karen. We are live from the Bloomberg Interactive Broker Studios or at six fifty one on Wall Street Time Now to check what's going on in d C or.

Some of the tough stories include President Biden hinting it more oil releases to had gas prices, the January six Committee to get Eastman emails showing likely fraud, and President Biden heading to battleground Pennsylvania today with the control of the Senate in the balance, joining US now from another mid term battle ground, Ohio is Boomberg. Government congressional reporter

Jack Fitzpatrick. I'd love to get to what you're doing when it comes to the mid term races, Jack, but let's start with what's happening in d C, including this announcement of a final tranche of releases from the Strategic Reserve and President Biden saying even more maybe coming. Of course, this is coming less than three weeks before a mid

term election. Yeah, and that has led to some some responses from Republicans saying this, uh, their their concerned, this is politically motivated, and it's a kind of convenient timing to use a national asset such as the Strategic Petroleum Reserve uh to try to drive down gas prices uh so close to the election. But the President has said he he's told his team at the White House, in his words, to be prepared to look for further releases

UH if needed. So he didn't put out too much of a specific plan beyond this next fifteen million barrels. He announced that release from the U S reserves and is still sort of leaving open the option for more. Of course, we have seen gas prices in a lot of the country go down from their highs over the last year or so, but still relatively high. And uh, it is I guess a political liability for a lot of Democrats and the President. Yeah, particularly when we're this

close to an election. Here are is the White House still keeping the door open to a fuel export band. That's something that could have some serious implications as well. Yeah, they have not ruled that out. Um. The Brian Deese was asked about that on Bloomberg TV. Uh. He cited that the uncertainty around the situation around the global supply

of petroleum products. So the export band is another, uh, you know, more of a significant measure, um, that they have on the table, more significant than just an SPR reserve release. And that is something that at least for now, they have not ruled out. All right, let's turn to another pretty significant story out of the nation's capital having to do with the January six Committee and a federal judge talking about potential evidence of criminal activity by the

former president. Yes, so there's a U. S. District judge who ordered the disclosure of more documents. Uh that John Eastman, uh, former President Trump's former attorney, had argued should not be forced to be given to the January six Committee in Congress. Uh the district district judge at least said that these are related to possible criminal conduct. Uh. He he is the judge that said Trump probably attempted to obstruct Congress's

certification of the election. So this plays into the amount of information that is going to that January six committee. It doesn't require prosecutors to take action or anything like that to charge anybody with crimes, but is it is a significant step forward just for the amount of uh information and the number of documents being made available from Trump's former lawyer to that January six committee. I want to turn back to the mid term campaign battle grounds.

Of course, you are in Ohio right now. President Biden is going to be on both sides of Pennsylvania. Talk a little bit about what you've been covering, what voters are telling you right now, Jacke, You know in Ohio it's an interesting one because the polls show a very competitive race, but it has broken toward the Republican Party in elections so much recently that you have not seen a ton of help from national Democratic organizations in favor

of Tim Ryan. So he is trying to keep it close against the Republican nominee J. D. Vance, and some polls he's got a very slight lead over the last month or so. UM. But he is very much trying to separate himself in a pretty conservative electorate from the national Democratic leadership. UH. In the debate recently, he was trying to sort of prove his independence from someone like

Nancy Pelosi and tie Vans to Trump. Of course, Trump made some comments about how how loyal Vance was to him, So there's really a debate between the two sides over how loyal the other side is to less popular national figures. UH. And of course, in addition to that, there's a huge focus on inflation, uh, the state of the economy. UH. Interestingly, Ryan campaigning on a middle class and working class tax

cut in response to inflation. UM. So focus on the economy, but also really a major focus on who is independent of those national political figures. Just about thirty seconds left here, and speaking of the economy, with the President talking about these strategic oil releases and now slated to speak about the bipartisan Infrastructure law, how is that message resonating? You know, the infrastructure law is something they can tout Democrats seem

to appreciate it. It was a bipartisan bill. Uh. That is not the huge focus that I've heard or that's played into a lot of TV spending or anything along those lines. A lot of the debate what you hear from voters, in which you hear from candidates is a bit more politically charged than the infrastructure bill, and that kind of thing. You hear more of a debate over the Inflation Reduction Act and whether it did anything on inflation, a little bit more on taxes and some cultural issues,

obviously abortion. But if Democrats were hoping that the bipartisan infrastructure bill I guess carved through the partisan divide in any particular state, it does not seem to have been the case in Ohio at least all right. Bloomberg Government congressional reporter Jack Fitzpatrick covering the campaigns for US this morning from Ohio. Bloomberg Surveillance is next with Tom King, Jonathan Faroh, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar. This is Bloomberg