Bloomberg Daybreak: October 21, 2022 - Hour 1 (Radio)

search for missing Princeton University student. Plus its sentencing day for Trump Alloy Steve men In for contempt Michael Barner. More ahead, I'm tryn Stashow. In sports, the Yankees lost again in Houston Trail. The ALC has stood up in the Rangers lost, Devils beat the Islanders. A big trade

in the NFL. That's olds traded ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business. Hey Good Friday morning, I'm Nathan Hagar and I'm Karen Monstow. Us not index futures are

lower this morning. We're gonna be up to five oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On bloomberg S and P futures down twenty two points this morning, DALN futures down a hundred twenty five and NASDACK futures down one hundred. The decks in Germany's down one and a half percent. Ten year treasury down nine thirty seconds, held four point to six percent, and they yield on the two year

four point six zero percent. Nathan Karen will get more on the markets in a moment, but we begin this morning in the UK, where government leaders are weighing next steps following the resignation of Prime Minister Liz Trust. Bloomberg's You and Potts joins us live with the very latest from London. You and good morning, Good morning, Nathan and Karen. Political news moves fast in Britain at the moment. By next Friday, the country will have a fifth prime minister

in less than seven years. The Conservative Party. He will choose a new leader after Liz Trust quit becoming the shortest ever serving prime minister in the history. Plans are very short contest. If lawmakers make a clear choice, we could find out as soon as Monday. Former chance that Ritchie Sanak is the current favorite with bookmakers, The odds on the second favorite candidate have shortened considerably in the past few hours. That candidate is former Prime Minister Boris Johnson.

In London, immun Parts Blimberg, Break You and things that we continue to hear from current and former leaders wearing in our UK politics. Former Tory leader Michael Howard spoke to Bloomberg about the future of the Conservative Party the next twelve months so I'm doubt be going to be

very difficult and very thankful. But after that, I think there's every reason to suppose that inflation will be coming down, mortgage interest rates will be coming down, and the Prime Minister will be able to say we've been to a very top of time, that we've taken the right decisions and now we're seeing the fruits of those decisions. So don't take any risks and don't that labor ruin it. Former Tory leader Michael how Words says he is a supporter of Rishi Sunac to be the new prime Minister.

He also believes that Jeremy Hunter remained Chancellor trust resigned after forty four days, making her premiership the shortest in UK history. Let's stay overseas, Karen to China now, where tensions between Beijing and Washington remain in focus. The White House is now wearhing a further technology ban on China

to include quantum computing and artificial intelligence. Bloomberg's John Lou reports from Beijing the Biden administration taking as many steps as possible to try to limit China's access to these emerging technologies. Quantum computing UH is still sort of an experimental field, but the implications for the future, how greatly this technology could affect the future, I think makes it an important point to for the Biden administration to focus

on now. Bloombergs John lu says it's just the latest of many signs of the White House taking a harder line on China. Meantime, Nathan US Secretary of State Anthony B. Lincoln says relations with Beijing are added in election point, and he's building an international coalition to stand up against China. Bloomberg said. Baxter has that story Blincoln says, the key

is starting with Taiwan. The entire world has a stake in this and making sure that there is peace and stability and along the Taiwan Straight The amount of trade and commerce that goes that straight every day is essential to the world economy. So b Lincoln says, the US is not looking for conflict with China, but the China must understand that freedom of commerce with Taiwan as a matter of survival for the global community as a whole.

In San Francisco, I'm at Baxter Bloomberg Day Break, All right, ed, thank you. Now let's take a look back at market's. US futures are in the red as Wall Street looks to reverse a two day slump. Morgan Stanley chief equity strategist Mike Wilson thinks stocks may not have bottomed, but there is light at the end of the tunnel. The kind of final chapter to this bear market probably will be fast as well. If we've had this conversation three

months ago, and we probably did. I thought we could have this all wrapped up by thanksg and maybe have a nice ending to the holiday period and say, okay, we can move forward. But unfortunately I think it may you know, linger into next year. Morgan Stanley's Mike Wilson says we could see a reckoning of disappointing earnings in the next quarter. Well, speaking of earnings, Nathan, we're seeing

shares of Snap tumble after its latest results. They are down more than twenty six percent after reporting the company's slowest quarterly sales growth ever, and Bloomberg's Charlie Pellett has a story. The maker of the Snapchat apps said third quarter sales increase six percent to one point one three billion dollars. That was just shy of analyst savage estimate

of one point one four billion dollars. The social media company spent the quarter shrinking and refocusing its business, announcing in August that it was cutting twenty of its workforce and slashing projects that don't contribute to user or revenue growth or to the company's augmented reality efforts in New York. Charlie Pellet Bloomberg Daybreak. All right, Charlie, thank you. We also have a number of headlines on Twitter this morning.

Advised is on both sides that are looking to close Elon Musk's deal to buy the company by the end of the month. At the same time, Twitter is telling its staff there will not be widespread layoffs. That's after reports Musk wants to slash seventy five per cent of Twitter's workforce. Kurt Wagner covers the company from Bloomberg News, They're definitely going to be cost cuts at Twitter. I think we all know that layoffs are are widely expected. I do wonder if this is a little extreme, right.

What we've seen from Elon in the past is that a lot of his estimates have been pretty extreme in terms of what he thinks for revenue or user growth, and that could be going extreme in the other direction to with cost cut. Bloomberg's Kurt Wagner says the number of layoffs Twitter might not reach sevent but could still exceed other projections. If all that wasn't enough. Elon Musk

is also coming under scrutiny from the Biden administration. Sources tell us White House officials are discussing whether the U S should subject some of Musk's ventures to national security reviews, including the Twitter deal and Musk's SpaceX Starlink satellite network. Were told officials have grown uncomfortable with what they see as his increasingly Russia friendly comments. Checking shares of Twitter in the pre market right now they are plummeting down

nine and a quarter per cent. SMP futures are down twenty five point, staff futures down a hundred forty eight and nastack futures are lower by a hundred twelve points. Straight ahead your latest local headlines and a check of sports. This is Bloomberg at south five oh seven on Wall Street board forty eight degrees in Central Park. Dealing with a crash in New Rochelle southbound, New England threw away

at Boston Road. Details coming up in traffic First. Michael Barr is here with more on what's going on in New York and around the world. Good Friday morning, Michael, Good morning to you Nathan. A tragic end to the case of a missing Princeton University student. Missing student twenty year old Miss rock You and Nt was found dead behind some tennis courts on campus. She hadn't been seen since Friday, prompting her friends to report her missing to police.

Police say a grounds employee founder body with no obvious signs of in readding. Her death does not appear suspicious or criminal in nature. And on Topsy is pending to determine her cause of depth. Thousands are expected today at the funerals for two Bristol, Connecticut police officers killed in an ambush last week. Officers from across the US and in Canada are expected to attend services with Sergeant Dustin Deamonte and Officer Alex has Me. The services start or

Hamsey brother The services start at eleven am. Less than three weeks to the mid terms, President Biden paid a visit to Pennsylvania. In Pittsburgh, he greeted Democratic Senate candidate John Fetterman, predicting that he's going to win. Fetterman, Pennsylvania's lieutenant governor, is locked in a tight race with Republican doctor memit Oz. President Biden spoke at the side of a bridge that collapsed back in January, the President giving thanks for the lives that were spared when the fern

Hollow Bridge went down, by the grace of God. The school was delayed that day because of snow, and it was just before rush hour, so there was less traffic than usual. It had been a normal Had it been a normal day, it would have been much much worse. The bridge is now the side of an infrastructure Package funded reconstruction project. The Pentagon pushed back on Russia's denials that it is using Iranian made drones to attack civilian

targets in Ukraine. State Department spokesman Ned Price. We can confirm that Russian military personnel based in Plania have been piloted, piloting, piloting excuse me, Iranian ua V s and using the conducts kinetic strikes across Ukraine, including in strikes against Kievan.

In recent days. The European Union has announce sanctions on an Iranian aerospace company, Steve Mann, in the schedule to be sentenced today, If for a contempt of Congress were refusing to comply with the subpoena issued by the Household Committee investigating the January six attack on the US Capitol, Bannon could face up to two years in prison, but the Department of Justice is recommending a lesser sentence of

six months. In a two a thousand dollar fun Global is twenty four hours a day on air end on Bloomberg Quicktake power by more than twenty seven hundred journalists, analysts more than a hundred twenty countries. I'm Michael Barb This is Bloomberg. Nathan, Thanks Michael five tent on Wall Street. Time for the Bloomberg Sports up. They brought to you by try State Autie. Good morning, John Stanshower, Good morning,

Nathan to LCS. Games played in Uston. The Yankees and the opener had only five hits struck out seventeen times. Game two four hits struck out thirteen times. Yankee pitching and defense with solid but done in by one Astros swinging the bat a team in the third in Everino set just about the film and the one too, swinging a three pointer good way down town. That's God. Alex Bragman with the long ball. It's three nothing Amy to call.

Yank scored twice in the fourth off Rambert Valdez. It was due mostly the Valdesk committee two errors on the same play. No scoring after that. Uston won three to two. Like the opener. Yanks at the time run On in the ninth, getting and Matt Carpenters struck out. He's been up seven times in the postseason, has struck out all seven. Game three tomorrow, five o'clock start at the stadium at

the Garden. Rangers have two one lead lost in overtime to San Jose three to Herrick Carlson scored for the Sharks opening mid to Voute the New Devil I'm j. Pollock scored twice New Jersey to the Islanders four to one. The next home openers tonight against Detroit. The Nets host Toronto. Arizona Cardinals scored twenty two points in a span of less than two minutes late second quarterback to back pick six is They beat the Saints forty two to thirty four.

Jets and Giants, both riding three game winning streaks. Sunday facing two and four teens Denver in Jacksonville, forty Niners with a big pick up late last night and sent four draft picks, none of them first rounders, to Carolina. For Christian McCaffrey his last full healthy season two thousand nineteen, he had over a thousand yards rushing and receiving. John Stashower bloom Brook Sports, Nathan Okay, John, thank you, s and p Futures down twenty one points right now. This

is Bloomberg. Bloomberg Sports is 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,

The Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm Karen Moscow stocks are dropping as treasury yields continue to climb, which traders vetting the Federal Reserve and keep raising interest rates, and

as investors assess the latest earnings reports. We check the markets every fifteen minutes throughout the trading day on Bloomberg s and P futures down twenty four points, DAL futures down a hundred forty four NASDAG futures down one hundred eight the decks in Germany's down one point six per cent. Can your treasury down eleven thirty seconds? He had four point to seven percent, the yield on the two year

four point six zero percent. Nine x screwed oils down one on ninety eight cents at eighty three dollars, fifty three cents of arrol Co make school down seven tenths percent or eleven dollars forty cents at sixteen ounce, the euro point nine seven five four against the dollar British found one point one one three three and the end at one fifty point nine three. And look at a bitcoin, it's down four ten percent at eighteen thousand, nine hundred

fifty dollars. American Express among companies scheduled to report earnings today and that's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Uncle, good morning, Good morning Karen. Now that list Trust is out of ten Downing Street. Another leadership votes for the Bridges British for the second in the four months, has

been triggered to decide the country's new prime minister. There's a surprising possibility for the country's struggling Conservative Party, Boris Johnson has been floated as a possible return as prime minister. The Pentagon pushed back to Russia's denials that it is using Iranian made drones to attack civilian targets in Ukraine. The European Union, as an out sanctions on an Iranian aerospace company and three Iranian generals over Iran providing Russia

with drones to use in Ukraine. In baseball, the Yankees are down two games to zip in a LCS against the Astros. New York lost last night to Houston. Three two. Global News twenty four hours a day on air and on Bloomberg Quicktach, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael barn this is Bloomberg, Nathan. Thanks Michael. It's five nineteen on Wall Street Line from the Bloomberg Interactive Broker Studios. This

is Bloomberg Day Breaking. We want to get more now on the turmoil in the UK with Conservatives rushing to move past Liz Truss's run as Prime Minister. Joining us now is Richard Portis, Professor of Economics at London Business School, Academic director at a q R Asset Management Institute. Professor. It's great to speak with you this morning, although things are far from great in the UK right now. What do you make of what's happening in your country? Is

there a quick fix to the damage to the British reputation? Well, we've got a little sunshine at least today in London. Aside from that, at least there's that. Yeah, aside from that, not a lot. We have a what so many people have called a moron risk premium in our guilts, that is to say, in our long long term securities government securities, and so they're higher higher than they uh, the yields are higher than they should be. Consumer confidence is terrible,

consumer finances are terrible. Investment is beset by political uncertainties. Uh and um. There's a bright side of the labor market that unemployment is still low and there's no sign of a wage price spiral building up. So overall the pit sure is not great. What what policies are going to be introduced? It's hard to say, of course, since we don't know who's going to be the Prime minister.

But we pretty well know who's going to be the Chancellor of the Exchequer of the chief uh financial official, and that is the one who's right there now, Jeremy Hunt, and I expect that we will see substantial fistal tightening. On the other hand, Bank of England monetary tightening might not go as far as the market seem to expect. Is this a political crisis, is it an economic crisis? Or can the two be separated? The two can't ready

to be separated. As I said, I think the political uncertainty has some impact on investment behavior, on on what entrepreneurs are willing to do, what risks they're willing to take at this stage when everything is so unclear. But at the same time, Uh, the constraints on fiscal and monetary policy are so severe that what whoever comes in as prime minister, it's not going to have much wiggle room.

Not much wiggle room. I mean, what can be done in terms of not just getting the fiscal policy back in order in the UK, but to bring back some form of credibility for voters and for markets in your country. How about a little political stability, a little cohesion in the governing party. Uh. If you can't have that, then you really ought to go to a general election. If they're going to continue fighting among each other, whoever they choose as prime minister, then that prime minister is not

going to have much authority. And you will find in each and every vote to the House of Commons, whatever policies come forward, there's going to be a dissenting group. And if that group is allied with the Labor Party, then whatever it is won't get through. Well, what is it due to confidence though if there is a general election called early in the UK, I mean the schedule of elections has to do something for for voter confidence in some respect, doesn't it? Or or are people clamoring

now for a change in in the parties. I think there is a very substantial groundswell of people saying, come on, this is enough. How many prime ministers do we need to have that aren't elected? After all, it's time for a general election. Of course, the Conservative MPs looking at that, looking at the polls say oh gosh, I don't want to go out there now because the polls are so heavily against them. But but there is a very substantial body, and I'm not speaking just for myself, a very substantial

body of public opinion in this country. We would like to have a general election about thirty seconds left here, professor. Apart from the crisis of confidence just in the UK, where does all the chaos leave the country on the world stage? Oh, I think we're much diminished, not just because we left the European Union, but because we behaved

so badly since we left the European Union. Uh and uh, you know it will take um a very serious prime minister and serious policies to restore some degree of credibility. Right now we look a little bit too much like a badly functioning emerging market. Wow. Well, we'll leave it there for now. Thank you for joining us this morning, Professor, really appreciate your insights. Richard Portis is Professor of Economics at the London Business School Academic director at a q

R Asset Management Institute. We're expecting a pretty quick change in leadership here, with the candidates expected to be seated um as soon as Monday. Looking at the pound right now, it is weakening against the dollar. One nine SEP futures are down twenty six point, Staff futures down a hundred fifty seven. Nasdaq futures lower by a hundred nineteen. Bloomberg eleven three oh Weather sunny, low sixties today. It will be mostly sunny for much of the day Tomorrow with

highs in the mid sixties. Cloud Sunday, rain by the afternoon, low sixties to end the weekend. Right now forty seven broadcasting live from the Bloomberg Interactive Broker Studio in New York. Bloomberg Elving Freedo to Washington, d C. Bloomberg ninety nine one to Boston, Bloomberg what all six one to San Francisco Bloomberg nine six to the country, Sirius XM chto one nineteen and around the Blobe, 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 Hager. Bloomberg Daybreak brought to you by se I. Imagine your asset management firms operational infrastructure as a competit of their advantage. Let s e I show you how at se I C dot com slash I M S and we're just about four hours away from the open of US trading. Must get you up to date on the news you need to know at this hour. Well.

UK government leaders are weighing next steps after the resignation of Prime Minister List Trust Oz have a Refhi, Sunac, Penny Mordaunt and Boris Johnson is the most likely candidates to replace Trust. They got reaction from former Chancellor Philip Hammon this morning. I'm not gonna say until I know who the long enough of candidates is, who I think would be the person who will most effectively deliver stability.

But I don't think going back into the past and reincarnating a previous prime minister he's going to be any way to reassure markets. Farmer Chancellor Philip Hammond tells US the new UK government must avoid signaling more chaos to the market. Staying overseas care intensions between Beijing and Washington remain in focus. The White House is weighing a further technology ban on China to include quantum computing and artificial intelligence.

Bloomberg's John Lou reports from Beijing. We have the earlier Defense position paper out of Washington, which again named China as the United States is top strategic competitor. What we see now is the United States the Biden administration taking as many steps as possible to try to limit China's access to these emerging technologies. Bloombergs John lu says it's another sign the White House is taking a harder line

on China. Well. Looking at markets now, Nathan us future is in the red after hawk ish fed speaking, sticky inflation led to a two day slump. Treasury yields are climbing, while most major currencies weaken against the dollar and poor earnings are hitting shares of Snap. This morning, karen It reported its slowest quarterly sales growth ever. Right now, Snap

shares are lower by twenty five well. Sticking with corporate news, Nathan Advisors on both sides are looking to close Elon Musk's deal to buy Twitter by the end of the month. At the same time, Twitter's telling staff there will not be widespread layoffs. That's after report said Musk wants to slash sevent of Twitter's workforce. Kurt Wagner covers the company for Bloomberg News. I would be a little bit surprised if he comes in lays off staff and that's it.

It would probably be let's do layoffs, let's figure out where we want to go, and then redirected that way and Bloomberg Scurt Wagner says he still expects Musk to make big cost cuts, and as all of this is happening, sources tell us White House officials are discussing whether the US so IT is subject some of Musk's ventures to national security reviews, including the Twitter deal and his SpaceX Starlink satellite network. Straight Ahead your latest local headlines plus

the check of sports. This is Bloomberg. Thanks scaring. It's five thirty three on Wall Street, forty seven degrees in Central Park. Got a crash in Rochelle Park northbound seventeen Pasaic Street. Details coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. Officials in Princeton, New Jersey announced they found the body of a Princeton University student who have been missing since last Friday.

The body of one, a year old, Miss rock Unity, was discovered yesterday behind university tennis courts. At this point, there are no reports of foul play. The Pentagon pushed back on Russia's denials that it is using Iranian made drones to attack civilian targets in Ukraine. The European Union has announced sanctions on an Iranian aerospace company and three Iranian generals over Iran providing Russia with drones to use

in Ukraine. Pentagon spokesman Brigadier General pat Ryder, It's sad Iranian forces are supporting Russian military drone operations and occupied areas of Ukraine. We continue to see Iran be complicit in terms of exporting terror not only in the Middle East region, but now also to Ukraine. General Writers says though Ukrainian forces have been effective in shooting the drones down. The two New York gubernatorio candidates attended the Al Smith

Dinner last night in New York City. Governor Kathy hoh Cool faces Republican Representative Lee Zelden. Pole shows Elden, who has made crime a major issue in the campaign, closing a big gap against local President Biden was in Pittsburgh at the site of a bridge collapse that happened back in February or January, now the site of an Infrastructure Package funded reconstruction project. The presidentality rebuilding the progress on the fern Hollow Bridge, saying it's only the beginning. We're

finally getting to it. We're getting it done. We finally decided and instead of being ranked number thirteen in the world, thirteen in the world in from the United States, thirteen in the world in infrastructure, we should be ranked number one. The president campaign for Democratic Senate candidate John Sederman, who is in a tank race with Republican doctor mement Oz.

Trump allied Steve Bannon Face is sentencing today for a contempt of Congress or refusing to comply with a subpoena issued by the House elect Committee investigating the January sixth attack on the US Capital. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered more than seven hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg. Thanks Michael

five on Wall Street Time for the Bloomberg Sports. Something to you if I try stayed out here with John Sten shown. All right, Nathan. The Yankees obviously in a hole. To win the ALCS. They have to win four out of five from an Astro's team that has not lost any of their five postseason games so far. After Houston won the opener four to two or three to two win in Game two, Alex Bregman a three run over off Luis Severino, third in Yanks got two in the

fourth off Framburt Valdez. His two errors on the same play helped the Yanks out. There was a fleeting moment eighth didn't The Yanks had taken the lead. A man on for Aaron Judge on a swing that looked like one of the sixty four home runs Judge has hit this season, but it was caught at the wall in right field. Judge thought the wind kept it in the park. They usually have the roof closed and Houston with the head it open. Last night, the Yanks in two games

have struck out thirty times. Judge hopeful to hitting can come to life, and we got a great offense. I think we just gotta go back to you know what a Scott got us in this position, what helped us one in division, and you know we'll be where we want to be. You know, that's contact or that's moving guys over. If it's um with that big hit, we'll figure it out and we're inter beating. Tomorrow's game three, the stadium starts at five o'clock. Derrick Cole will pitch.

Rangers lost in overtime to San Jose three to two. The Sharks came in owen five. Devils beat the Islanders four to one. The Knick's home openers tonight against Detroit. The Nets are home for Toronto, NFL. Arizona outscored in New Orleans forty two to thirty four. A big trade swung late last night. Carolinas one in five just fired its coach, and the Panthers sent star running back Christian McCaffrey to San Francisco. He was a star at Stanford.

The forty Niners coaches Kyle Shanahan, McCaffrey's father played for Shanahan's father for nine years, and Denver. The Panthers get four draft picks, but no first rounders. John Stay Bloomberg sports Nathan, Thank you, John, five thirty seven on Wall Street Time for the Trice State Business Report with Bloomberg Citdney's Pellegrini. The debate over that possible Times Square casino

isn't and suffying. The New York Times says the Broadway League is among those opposed to a Caesar's palace in the area and made concerned casino could steal the show, but the owner of Junior's Cheesecake and other restaurants among those supporting Times Square gambling. We'll see if efforts by New York based Revlon to kiss and makeup with investors becomes challenge. Shares of the bankrupt cosmetics company being delisted from the New York Stock Exchange, the meme stock favorite

will keep trading over the counter. Granwich based warehouse operator g XO Logistics plans to hire about four thousand workers. The Connecticut company is preparing for the holiday shopping season. And while he was President, Donald Trump cut back on a big homeowner attacks benefit called the salt deduction, and that hurt many homeowners in the Tri State area. And now New Jersey Republicans are slamming Democrats for failing to

undo Trump's move and uncap that homeowner benefit. With the Tri State Business Report, I'm Dens Pellegrini's 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 Gina Servettian for w c CEO in Minneapolis. I'm

reporting that middle managers are exhausted on Corney Donahoe. On w h A S and Louisville, Whirlpool cuts its earnings outlook on inflation and fallon demand. I'm Denise Kellgren and on w w J in Detroit, I'm reporting on carbonas Michigan license remaining suspended. I'm Wendy Gillette and on w b Z in Boston, I'll be reporting on challenges to the student loan forgiveness program. I'm Steve Potus on K

and X to Los Angeles. We're talking about how artificial intelligence is making more decisions about what you'll pay to fly. On I'm Steven Carol and Bloomberg d AB Digital Radio and London, we've been reporting on the jostling among conservative MPs to win supports become the next Prime Minister. Those are some of the stories our twenty undred Bloomberg journalists and analysts are working on this morning. Around the world. It's five thirty nine on Wall Street. The following is

an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Because the US has a shortage of nurses, hospitals have turned to staffing agencies to fill the gap. Now, some lawmakers want to investigate if the rise of so called travel nurses who work on contract has harmed the health care industry. A better question to ask is why more people aren't entering the field in the first place. One reason is a lack of funds

for training. In one US nursing schools turned away more than ninety thousand applications because they didn't have enough educators or clinical placement sites. Congress should expand tuition reimbursement for nurses who teach or commit to work in shortage areas. Helping aspiring nurses enter the profession wouldn't just reduce reliance on contractors. It would strengthen the entire US healthcare system.

The editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, Slash Opinion or Opie I n Go on the Bloomberg Terminal. This has been Bloomberg Opinion. Bloomberg Opinion editorials can be heard every week at this time. Terminal Customers can read more at op I n Go. And 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 Tri state Audie Dealers to get behind the wheel of yours today, or visit Audie 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 tape. This is a Bloomberg business blash and I'm Karen Moscow stocks are dropping as treasury yields continue to climb. Which trader is

getting the feeder reserve book give raising interest rates? This investors assess the latest earnings reports. We check the markets every fifteen minutes throughout the trading day. On bloomberg SMP future is down about twenty three points down, futures down a hundred thirty eight nastack futures down one hundred the decks in Germany's down one point six percent. Ten year treasury down eleven thirty seconds. He had four point to seven percent yield on the two year four point six

zero percent. Nine X Secret oil is down four tens percent or thirty six cents at eighty four dollars fourteen cents of barrel coms goal down half percent or eight dollars fifty cents at sixteen twenty eight thirty announce the euro point nine seven four zero against the dollar, British found one point one one two two and again one fifty point nine six and Bitcoin is down three ten percent at eighteen thousand, nine hundred 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. Ukrainian President zal Lensky Warren today Russia maybe planning to frame Ukraine for an attack on the Russian controlled city of Curson in the coming days. As Ukrainian residents are trying to recover from this week's shellings, President Zelinski is warning of a quote larger scale disaster. He says the

Russians have now packed a major damn with explosives. Scotland's first minister called for an early general election after UK Prime Minister Liz Trust resigned following weeks of political and economic turmoil. In baseball, the Yankees are down two games to ZIP against the Astros and the a l CS. New York lost last night to Houston three two and HL. The Devils beat the Islanders for one. The Rangers and Capitals lost the Bruins one. NFL, the Cardinals beat the

Saints thirds of Night Football forty four. Big trade. The Panthers traded running back Christian McCaffrey to the forty Niners in exchange for draft picks. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more of than twenty seven hundred journalists an analysts and more than a hundred twenty countries. I'm Michael bar This is Bloomberg, Nathan. Thanks Michael. It's five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studio. This

is Bloomberg Day Break. Let's take a look now at this market. We're joined by Anica Gupta, director of Economic Research at Wisdom Tree. Anica, it's great to speak with you this morning. We're watching futures fall and watching treasury yields climbed to levels that we haven't seen since before the Great Financial Crisis. Now with the tenure at four to seven, how deep could this bond sell off go?

Very good morning, Nathan, Yes, you're right, Um, you know, yields are rising to you know, at a pace that we haven't seen since a very long time, and that's clearly, uh, you know, having a big implication on the dollar, which is essentially reaking havoc on risk assets as we can see this morning. Um, you know, clearly there's a lot of focus being paid on the earnings results that are

coming in and it's been quite mixed so far. We started out quite strong, but now we're getting a lot of uh, you know, guidance coming in from from come benneys across Europe and the U S which is highlighting uh you know, a bit of a slowdown. So that is definitely also a denting sentiment. And we you know, we were expecting that to happen, so it's quite in

line with our view. It was centree in terms of, you know, the path we are taking going forward, what is that path and where do you see stocks going at this point? I mean, a lot of the debate going on right now is whether we have hit bottom or whether the bottom could be coming in the next few months. Here. What are you looking for? Well, you know, a lot of it has been predicated on the path being taken by the FED. You know, although the FED is the central bank for the US, it is also

the central bank for the rest of the world. And um, you know, the the two prints that we've been we received in the past two weeks, you know, the Labor Market report alongside the CPO inflation report. You know, did pencil in and did cement the fact that the FED is going to be a lot more Hawki is moving into your end UM and as a consequence of that, that you know, pretty much tells us that the dollar is going to remain strong and the strong dollar is going to have an impact on UM, you know, on

US corporates earnings results. It is going to have pressure given uh, you know, the international footprint that a number of US companies do have. UM. At the same time, if you if you look across assets, uh, you know, commodities are being impacted by this very strong dollar. Uh as you can see, you know, we've seen quite a

strong correction taking place across the commodity spectrum. So UM, I think our view is that that goal for capitulation is is you know, pretty much being seen across the markets. I don't think we've seen a bottom yet. We're likely to see your further correction as we navigate our way

through Q three earning season. And it's also going to provide a lot more clarity to investors is to where uh, you know, these these different markets opposition and clearly in this time of turmoil that we're seeing, China isn't helping it all. You know, China is usually that US. You know that that rescuer of last resort that we you

know often have. But this time around, even though we're having you know, in the midst of the Congress Party meeting, which is usually has been a tail winning for markets, as you know, they we get an idea of the policy path ahead. Um. You know, we aren't seeing anything very positive coming out, you know, from that Congress Party meeting. Uh. It really looks like the you know, the the focus is being on, uh for is being on you know, trying to preserve the state uh and as opposed to

actually helping uh, you know, boost corporate profits. Um. And I think there's going to be a lot more being going forward. Only about thirty seconds left here, Onica, But with the financial conditions tightening the way they are now, is there a risk of the Fed overshoots on policy? Um, there is a big, big risk that the Fed overshoots

on policy. However, you know, the the the overarching reason that that's allowing them to do this is we haven't seen a meaningful decline come about an inflation and hence that just keeps building up their case for for continuing this aggressive monetary policy path. Um, which is why you know we've been seeing increasing calls is something to break

to stop the FED from being so aggressive in its path. Um. We did see that in the UK, but that was very much a UK central focus issue, which was you know, based on the more accommodated fiscal policy policy that we've seen. Um And the only thing that we could side is, you know, a liquidity problem in the bond market that could allow the FED to stop. Thanks Sonica, great having you on with the Sonica Gupta with Wisdom Trade. Karen, Right, Nathan,

it is father to day four on well Stray. Time for the Bloomberg Law Report, brought to you buy American Arbitration Association. Business disputes are inevitable, Resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a dr dot Org. Let's get to the legal stories we're watching this morning

with Bloomberg Jeff Bellinger. Apple struck back at Massimo, accusing the medical technology firm of secretly copying the Apple Watch and trying to block imports while it prepared to launch its own watch. A federal judge in Nevada rule that a lawsuit accusing MGM Resorts International of mismanaging. It's for a one K plan will move forward as a class action. Night Transportation reached a four hundred fifty thousand dollar deal to resolve allegations by truck drivers who say the company

owes them back wages. 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. Jeff,

thank you Now. Another legal story we're watching. There's a new front in the bitter legal battle between Starbucks and the Workers Union, which is dozens of pending complaints with the National Labor Relations Board accusing Starbucks of violating federal labor law and its efforts to deal with the union allegations that Starbucks denize I grew up A Starbucks employees in South Carolina are suing the company for defamation over

its response to a union protest. The employees accused Starbucks of falsely and maliciously portraying them as criminals in response to a confrontation in which they presented a letter of demands to their store manager, who then reported them to police. For more Bloomberg's doing. Grosso Speaks, a labor law expert

Kate Andreas, the professor at Columbia Law School. A defamation claim in a union organizing effort is certainly unusual and got a lot of attention, including from Senator Bernie Sanders. But is it effective legally? Yeah, So the allegations in this case are really pretty stunning. The employer apparently accused workers of trying to kidnap him without any evidence according

to the Least report. So the workers seemed to be seeking to pursue a death Mason claim because that gives them more ability to when remedies than proceeding under the National Labor Relations Act, because state law includes greater penalties for violations of defamation law than labor law allows. And I think their argument is that the harm here is one that more of sort of defamation rather than a

labor violation. It's not entirely clear whether the suit will be able to go forward, because federal preemption doctrine does require that conduct that is protected by the Act or prohibited by the National Labor Relations Fact legal issues around that must be resolved in the first instance by the board. The union has prevailed at around two hundred fifty of the company's nine thousand stores, and the unions filed numerous legal complaints with the National Labor Relations Board. Do those

complaints ever bring any kind of resolution. I think what we're seeing with Starbucks is that there's overwhelming interest among workers and organized in union. Hundreds of Starbucks stores and I think three dozen states have had union elections, and this is really pretty stunning given that a year ago no Starbucks had the union, and the vast majority of these have voted to unionize. Nonetheless, what these workers are confronting at the legal regime that really doesn't do a

good job at protecting their rights. And so what we see is that the employer has engaged in a pattern of antigunion activity, and the penalties under the National Labor Relations fact are really pretty minimal, and so I think the workers are looking to other tools to try to make sure that their rights aren't violated. That's Kate Andreas, the professor at Columbia Law Schools seting with Bloomberg student Grosso. Our top stories are straight ahead, and this is Bloomberg