Bloomberg Daybreak: October 21, 2022 - Hour 2 (Radio)

to the search for missing Princeton University student. Plus it's sentencing day for Trump Alloy Steve men in for contempt Michael Barr. More ahead, I'm trying stage shower and sports. The Yankees lost again in Houston Trail. The ALC has to nothing, The Rangers lost, Devils beat the Islanders, a

big trade in the NFL. That's all training ahead on Bloomberg day Break on Bloomberg eleven, Free on New York, Bloomberg ninety nine one, Washington, d C, Bloomberg one O six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nine team and around the world on Bloomberg Radio dot Com and via The Bloomberg Business. Good Friday morning, I'm Karen Moscow. I'm Nathan Hagar. Bloomberg. Daybreak is brought

to you by SEI. Asset managers don't get results that are off the charts when their solutions are off the shelf. Learn how SEI is operating platform can turn infrastructure into a competitive advantage at se I, C, dot Com, slash Tech, and US dot Index. Futures are lower this morning, so one on Wall Street. We check the markets every fifteen minutes throughout the trading day on Bloomberg S and P futures down twenty points down, futures down a hundred sixteen,

Nasdack futures down in nineties three. Nathan, Karen. We'll get born 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 has 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 Consufti 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 Snak is the current favorite with bookmakers, the gods on the second favorite candidate have shortened considerably in the past few hours. That candidate is former Prime Minister Boris Johnson. In London,

Immune parts Limberg, Debreak and thanks that. We continue to hear from current and former leaders weighing in on UK politics. Former Tory leader Michael Howard spoke to Bloomberg about the future of the Conservative Party the next twelve months, so I'm doubtedly 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 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 label ruin it. Former Tory leader Michael Howard says, you supporter of Rishi Suna to be the new prime minister.

He also believes that Jeremy Hunt remained Chancellor. Trust resigned after forty four days, making her premiership the shortest in UK history. Staying overseas, Karen Let's turn to China, tensions between Beijing and Washington remaining focus now. The White House is weighing a further technology ban on China to include

quantum computing and artificial intelligence. Sploomberg'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 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. Bloomberg's John lu says it's just the latest of many signs the White House is taking a harder line on China. Meantime, US Secretary of State Anthony Blankolin says relations with Beijing are at an inflection point, and he's building an international coalition to stand up a against China. Bloomberg said, Baxter has that story. Lincoln 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 to that straight every day is essential to the world. Economist 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 daybreak. All right, and thank you. Let's

take a look back at markets now. Futures are in the red as Wall Street looks to reverse a two day slamp. 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 had this conversation three months ago and we probably hit I thought we could have this all wrapped up by Thanksgiving and maybe have a nice ending to

the holiday period and say, okay, we can move forward. 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. Speaking of earning to Nathan, we're seeing shares a Snap tumble after a slatest results. They're down twenty six after reporting the company slowest quarterly sales growth ever. Bloomberry Shirlie Pellett has the story.

The maker of the Snapchat app 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

Pellett Bloomberg Daybreak. All right, Charlie, thank you. We also have a number of headlines on Twitter this morning. Advisors on both sides 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 staff there will not be widespread layoffs. That's after reports Musk wants to slash seventy five percent of Twitter's workforce. Kurt Wagner covers the company for 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 costcut. Bloomberg's Kurt Wagner says the number of layoffs that Twitter may not reach seventy pcent, but could still exceed other predictions. 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 the Musk ventures to national security reviews, including the Twitter deal and his space X Starlink satellite network, which told officials have grown uncomfortable with what they see as

Musk's increasingly rush a friendly comments. Taking a look at Twitter, shares right now, they are lower by seven point seven percent. In the pre market, SMP futures are lower by seventeen points down, futures down ninety eight. Nastac features are lower by eighty seven points. Ten year treasuries down nine thirty seconds now the yield four point to six percent. The yield on the two year four point five nine percent. Straight ahead your latest local headlines in the check of sports.

This is Bloomberg and it sounds six so seven. On Wall Street. We are at forty seven degrees in Central Park. Got an accident on the southbound West Side Highway at seventy nine. Details coming up in traffic. First Michael Barr with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. A tragic into the case of a missing Princeton University student. Missing student twenty year old Miss rock Unity was found

dead behind some tennis courts on campus. She hadn't been seen since last Friday, prompting her friends to report her missing to police. Police stay at grounds employee found her body with no obvious signs of injury, adding her depth does not appear suspicious or menal in nature. 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

for Sergeant Dustin damnty An officer Alex Hemsey. 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 Memiaz. President Biden spoke at the side of a bridge that collapsed back in January.

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 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 HA got pushed back on Russia's denials that it is using Iranian made drones to attack civilian targets in Ukraine. State Department

smoke has been ned price. We can confirm that Russian military personnel based in Primia have been piloted piloting piloting excuse me, Iranian ua v s and using them to conducts kinetic strikes across Ukraine, including in strikes against Kievan in recent days. The European Union has an ounce sentions

on an Iranian aerospace company. Steve Bannon is scheduled to be sentenced today for a contempt of Congress were refusing to comply with the subpoena issued by the House Select Committee investigating the January sixth attack on the U S Capitol. Bannon could face up to two years in prison, but the Department of Justice is recommending a lesser sentence of

six months and a two hundred thousand dollar fine. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan, Thank you, Michael six o nine on Wall Street Time for the Bloomberg Sports Update, brought to you by Fry State out He with John Stash. All Right, Nathan to a LCS games and used in the Yankees and the opener had only five hits struck

out seventeen times. Game two, four hits struck out thirteen times. Yankee pitching in defense with solid but done in by one Astros swinging the bat, third set just about the belt and the one too swinging at three pointer put way down town. That's Alex Bradley with the long ball. It's three nothing. I mean they call Yanks scorch twice and the fourth thought Framber Valdez do mostly the Valdez committing two errors on the same play. No story after that.

Houston won three to two, light the opener. Yanks at the time run on ninth to name and Matt Carpenter struck out as he has in all seven of his postseason at bath. Game three tomorrow at the Stadium at the Garden Rangers at a two one lay, but lost in overtime to San Jose three to Eric Carlson scored for the Sharks opening minute of ot the New Devil Andre Polote score twice. New Jersey beat the Islanders four

to one. The Knicks homeopeners tonight against Detroit. The nets Hos Toronto Arizona Cardinals twenty two points to a span of less than two minutes late second quarterback to back pick sixes partners beat the SATs forty two to thirty four, Jets and Giants, both riding three game winning streaks, and on Sunday facing two and four teams Denver and Jacksonville forty Niners with a big pick up late last night, they traded four draft picks, none of them first rounders,

to Carolina for Christian McCaffrey, who, with his last full healthy season two thousand nineteen, had over a thousand yards rushing and receiving. John Stashward, Bloomberg Sports, Nathan Thanks John SMP futures down twenty one points down, Futures down a hundred eighteen, nest At futures down a hundred one points. Twitter shares down eight point four percent in the pre market on reports of potential widespread job cuts and new scrutiny of Elon Musks deal. We'll talk about it all

next with Bloomberg Quick Takes Alex Web. This is Bloomberg. Bloomberg Sports Report was brought to you by Outing. 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 Out and at Bloomberg Quick Tape, He's

a Bloomberg Business lash and I'm kared. Moscow stocks are dropping as treasury yields continue to climb, with traders betting the Federal Reserve but keep raising interest rates and his investors assess the latest earnings reports, and we check the

markets every fifteen minutes throughout the trading day. On Bloomberg Guess and p Future is down to twenty four points down, futures down a hundred thirties seven nasdack futures down one seven, the decks in Germany's down one and a half percent, ten year treasury down eleven thirty seconds four point to seven percent, and the yielding the two year four point

five nine percent. Nine max Screwed oil is down four tenths per cent, or thirty three cents at eighty four dollars eighteen cents A barrel call makes good down half percent or eight dollars seventy cents at sixty announced, the euro point nine five against the dollar British found one point one three and the yen one fifty point nine eight. Looking at Bitcoin down three tenths percent at eighteen thousand,

nine 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, thank you very much, Karen. Now that Liz Trust is out of ten Downing Street, another leadership vote has been triggered to decide Britain's new prime minister.

Favorites include former Treasury chief Rieshi Sunac and House of Commons leader Penny more dont The wild card is former Prime Minister Boris Johnson, who was forced to resign by the party just over three months ago amid ethics scandals. In baseball, the Yankees are down two games to zip against the Astros in the a l CS. New York lost last night to Houston three two. In the NHL, the Devils beat the Islanders for one. The Rangers and

Capitals lost the Bruins one. In the NFL all the Cardinals beat the Saints and Thursday Night Football for four and a huge trade. The Panthers created 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 Quick Take, powered by more than seven hundred journalists and analysts and more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg Nathan Huge. Thank you, Michael.

Six nineteen on Wall Street Live from the Bloomberg Interactive Brokers studios. This is Bloomberg day Break, speaking of huge Look at what is going on in Twitter. It just the last few hours the social media company has had to tell employees it's not making plans for widespread layoffs. But that was after The Washington Post reported that Elon Musk could cut staff by as much as seventy five

percent once the deal goes through. And now reports this morning that the Biden administration is thinking of giving Elon Musk's deals greater scrutiny, including the forty four billion dollar Twitter buy out. Let's try to sort all this out now. Alex Webb is with US correspondent at Bloomberg Quick Take. Alex, what do you make of all these rewards. I think it was inevitable that there were going to be some job cuts at Twitter. We know that he had to come in and find a way of making this business

work when you go to the Bay Area. I had some conversations with you know, investors and people in around the company a little while ago. Some people sort of said that actually Twitter is massively over staff. Given what its business doesn't it isn't very efficient. The big shock is the scale of the cuts that seemed to be on the books a lot. There are nevitably concerns and the impact that would have on content moderation and of course the platform security. Um. But as a private company,

Elon can sort of do whatever he wants. So, uh, the people you've got to feel for right now, our Twitter employees who are feeling a great deal of doob insecurity, right. I mean, we've been talking before about how poor morale uh not only is but must be right now at Twitter. But I wonder if this raises some questions for you, not just about whether the company is being run efficiently, but about the money that Elon Musk has to put together to get this deal done. He's already said that

he's massively overpaying for this company. I mean, is he going to have to cut costs just because he's putting so much money into this deal. Yeah, particularly if some of it is debt funded. He's got to find a way of you know, servicing that debt. The thing that's quite interesting is is Twitter's UM sales per employee are in the order of six hundred and seventy tho dollars. Facebook sales for employee like one point six million dollars.

So there's there's quite a big discrepancy there. Now, you know, does cutting headcounts solve the problem is almost certainly not. It's also there is a private X approach which is sort of slashed then build. You go in, you stash all the things you think are done, and then you work out the things you need. Now we don't know that that is his approach, but um, there is scope certainly to make Twitter Lena how Len You know, we don't have the same access to the books that he

that he might do. Um, but he certainly thinks that a lot Lee knows the answer or still do anyway, based on this taste reporting, we should say right. And we have also talked before about the types of changes Elon Musk could make, or if he does get this deal done the X app that sort of thing, what kind of changes to Twitter could we envision If it does turn out to be a much leaner operation, well, if it's Lena, then it probably doesn't have the same

ADS stack right over. The head count of these places is all about building the ADS product. If he comes, if he builds something which is frankly a different business subscribers or or per subscriptions or something like that, perhaps that is an opportunity to make it quite a bit leaner. Now, if he's building it into the everything app, this X app that he that he has mooted in passing, well,

that actually requires adding more services. So it's hard to see how you do that with fewer employees that you need to build things like a payments there, you need to build a platform frankly that it's easy for people

to plug into that requires investment. So it's hard to see how just slashing head count in perpetuity um creates that particular roadmap, which is why there's some suspicions that it would be slash first, build later, if indeed that is his real plan and if indeed the deal goes through, we've got this reporting now that the Biden administration could be putting Elon musk steals under greater scrutiny, including Twitter.

I mean, he's already under a lot of sec scrutiny in our last thirty seconds here, what's the possibility that regulatory pressures keep this deal from getting done? It would be a deep irony that it was regulatory pressures that we're going to force the deal to go through. And now if you know this has legs, regularly pressures that might put an into it. The stocks trading eight sent

down in the pre market. Clearly the market thinks that this maybe does have some legs, should clarify his adventures, not just his deals, because he has Starlink, which is operations in Ukraine. So yeah, there's a deep irony at the heart of this. There's clearly some still some way

to go before they would block it. As always, Alex, great to have you on with us, Alex web correspondent for Bloomberg Quick Take and taking a look at Twitter shares in the pre market, they are moving lower, down seven point seven percent, putting even more of a premium on Elon Musk's billion dollar buyout offering put it out there at twenty a share. Right now in the pre market, it's at forty thirty nine. SMP futures are lower by twenty two points. Stown futures down a hundred thirty three,

NASTAC futures are down one d five points. Send your Treasury is now down to eleven thirty seconds for yield of four point to seven percent, highest level in fifth teen years. You're listening to Bloomberg day Break Bloomberg eleven three oh weather sunshine Today, highs in the low sixties, will be mostly sunny much of the day. Tomorrow mid sixties, it'll be cloudy Sunday, rainy by the afternoon, with hys back in the low sixties, currently forty seven degrees 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 to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine six to the Country, Sirius XM to had A one nineteen and around the globe the Bloomberg Business app in Bloomberg Radio Dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning.

I'm Nathan Hagar and I'm Karen Moscow. We are just about three hours away from the open of US training. Time for the five things that you need to notice start your day to you buy Interactive Brokers. Interactive Broker's clients are an interest of up to two point five eight percent on the idle cash and their brokerage accounts. Visit i v k R dot com slash interest rates to learn more. First, UK government leaders are weighing next

steps after the resignation of Prime Minister Liz Truss. All let's have Rishi Sunac Penny More not in Boris Johnson as the most likely candidates to replace trust and we get a reaction from former Chancellor Philip Hammon this morning. I'm not gonna say until I know who the line up 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 is going to be any way to reassure markets. Former Chancellor Philip Hammon 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. But we look at markets now, Nathan. You futures in the red after hawkish fed steak and sticky inflation led to a two day slump. Treasury yields are climbing the most major currencies weakened against the dollar. Poor earnings are hitting shares of Snap.

This morning, Karen Snap reported its slowest quarterly sales growth ever, and right now the shares are down twenty and sticking with corporate news, Nathan, Advisers 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 is telling staff there will not be widespread layoffs. That's after reports at Musk wants to slash s 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 said. Kurt 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 TO subjects some of Musk's adventures to national security reviews, including the Twitter deal and his SpaceX sterling satellite network. That's like at Twitter shares this morning, they're down almost eight percent in early trading. That's the five things that you need to know to

start your day, brought to you by Interactive Brokers. Futures this morning are lower. SMP future is down about twenty two points down, futures down a hundred twenty five and ASDAG futures down one to ten year Treasury down twelve thirty seconds. You had four point to eight percent and they yield on the two year at four point six zero percent. And straight ahead we have your latest local headlines plus the check of sports, and this is Bloomberg.

I thank you Caring. It is six thirty three on Wall Street, wet, seven degrees in Central Park, very heavy traffic in Fairfield southbound Merritt Parkway has an accident at exit forty two. More coming up in traffic. First Michael bar with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. Officials in Princeton, New Jersey announced they found the body of a Princeton University student who had been missing since

last Friday. The body of miss rock You and Nitty was discovered yesterday behind university tennis courts. At this point, there are no reports of foul playing. 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 an ounce snsions on an Iranian aerospace company and three Iranian generals over Iran providing Russia with drones to

use in Ukraine. Pentagon spokesman Brigadier General pat Riders said Iranian forces are supporting Russian military drone operations in 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 writer says, though Ukrainian forces have been effective in shooting the drones down. The two New York gubernatorial candidates attended the Al Smith

Dinner last night in New York City. Governor Cavy Hohoco faces Republican Representative Les Eldon Pole show Zelden, who has made crime a major issue in the campaign, closing a big gap against Tocal. President Joe Biden was in Pittsburgh at the side of a bridge that collapsed back in January. Now the side 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're 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 Fetterman, who was in a tight race with Republican doctor Memitaz. A New York jury sided with actor Kevin Spacey that he did not sexually abuse Anthony Rapp then fourteen and nineteen eighty six.

Trump ally Steve mannon face is sentencing today. If we're contempt of Congress were refusing to comply with the subpoena issue by the House elect Committee investigating the January sixth attack on the US Capitol. The Justice Department is recommending six months behind bars and a two hundred thousand dollar fine. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyists more than a hundred twenty countries. I'm

Michael Barr. This is Bloomberg, Nathan. Thanks Michael, almost six thirty six on Wall Street, john Sesshires and Bloomberg Sports Up. They brought to you by Try stay out all right, Nathan, Yankees obviously in a hole. So win the Alcs. They have to win four out of five from an Astros team that has not lost any of their five postseason games. After Houston won the opener four to two, three to two win in Game two, Alex Bregman three run homer

off Luis Severino, third and in. Yanks got two of the fourth off Framburt Valdez his two errors on the same play to help the Yanks out. There was a fleeting moment eight didn't The Yanks had taken the lead a man on for Aaron Judge and a swing that looked like 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 used him to

be headed open. Last night the Yanks in two games, I've struck out thirty times, Judge hopeful to hitting can come to light. And we got a great offense. I think we just gotta go back to you know what us Gott got us in this position, what elped us one in division, and you know we'll be where we want to be. You know, that's contact and that's moving guys over. If it's um with that big hit, you know, but we'll figure it out. And they were into beating.

Tomorrow's game three, the stadium starts at five o'clock. Eric Cole will pitch. The Garden Rangers lost in overtime to San Jose three to two. Trucks came in open five. Devil's beat the Islanders Porter one. The Knicks home opener tonight against Detroit. The Nets are home for Toronto NFL. Arizona two pick sixes and outscored New Orleans forty two to thirty four. Big trade Carolina is one in five, just fired the coach, and late last night the Panthers

since star running back Christian McCaffrey to San Francisco. He was a star at Stanford and the forty Niners coach is Kyle Shannon, and McCaffrey's father played for Shanahan's father for nine years in Denver. The Panthers get four draft picks back, but no per Founder John Stairs with Bloomberg Sports,

Thanks John on Wall Street. Time to take a look at stock some of the names moving in the pre market once again, a very busy morning for Bloomberg Radio and TV markets corresponded Pretty Gupta with the social media stocks the ones to watch this morning, and not for the reasons investors would like. That's for sure, absolutely some pain that you are seeing in our in our favorite U M N A saga, which of course is Twitter and Tesla or your Twitter and Elon must get to

say Tesla. Also moving on the back of this, several developments to take into Accounty or Nathan. I want to start off with a Washington Post story that said that Elon Musk one he if he should complete the deal and looks like that is what is going to happen. He is looking to cut seventy five of their staff. So you did see some pain in the stock after hours from that. But now the newest development here is that perhaps of the United States is wayne security reviews

for some of elon musk steals. That does include a space X venture, It also includes this takeover of Twitter shares. What that does for Twitter is t w t R here taker down about eight and a half percent, taking it further and further away from that deal agreed amount of fifty four dollars and twenty cents. It is now trading at about forty eight dollars per share. So some pain there, and like I said, as promised Nathan, on the back of that, you still have to have a

Tesla move as well. Remember Twitter and Tesla traditionally move in opposite direction simply because the idea of Ellen must split attention what we might that do to one or both of those businesses. But this morning Tesla shares under pressure as well once again on those security reviews risk for Elon must steals. T s l A down about one point one percent as an eight percent dropped for

Twitter shares weren't enough creating. The shares of snap this morning are just getting crushed off the back of earnings. Absolutely one one upping the Twitter kind of sids. Yeah, absolutely, Snapchat shares s an a p down a whopping twenty six percent. They did report earnings last night. They're plunging on the slowest sales growth ever, the decline in advertising continuing to drag on those results. I remember a lot of this is going to be from those macro economic concerns.

I love to look at these advertisers because think about it. If you are a major corporation and you are not feeling so great about the economy, do you really want to put your money into advertising dollars when you know a consumer may or may not be willing to buy your products in a couple of months time. That those are the kind of questions that a lot of people are asking when it comes to the advertisers, and what it does is create a massive kind of cut on

their bottom line. Snapchat also speaking of cut, trying to decline their workforce on revenue generating projects, so you can really see we are in a kind of cost cutting mode when it comes to the likes of Snapchat. All right, Bloomberg Radio on TV. Markets correspondent Crety Gupta is gonna be uh pretty busy as well. Next week, I'm sure is even more of the tech names report earnings next week.

Will be checking back as we do every morning. At this time, looking ahead to the market, Open futures are lower. SMP futures are down twenty one point, Style futures down a D twenty one, Nasdaq futures down one hundred points ten. Your treasuries down ten thirty seconds, the yield four point to seven percent. You're listening to Bloomberg to daybreak. Bloomberg Sports is brought to you by Audie. Don't let someone else drive off in the Audi 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 Quicktape is a Bloomberg Business lash and I'm Karen Moscow. Any West Dock Index futures are in the red today, Let's go to the first Word Breaking News desk for today's morning call, and here's

Bill Maloney. Bill, good morning, Hey, good morning. Can. That's right. US futures are under pressure right now, deaf. You just down a hundred and thirty four points. SUV dropped twenty three one. That's that futures are off by one oh eight. The US ten year old at four point to eight percent, Gold is down three. Oil is also trading down, and Bitcoin is a lower by point three percent. Hong Kong fell point four percent overnight, while up markets are also

in the red this morning. And back in the US on the economic front at one o'clock, the baker he used US rig count after develops night, Whirlpool cut its earnings outlook on inflation and falling demand, and Snap report it's slowest ever sales growth. Shares it down twenty six percent in the pre market Regarding some of the earnings this morning, look for American Express and Verizon to report. In other news, the US is wang security views on

musk deals including Twitter. Those shares a down eight percent pre market. Wrapping things up, Juniper was raised a strong by over at Raymond James Live from the first Breaking news discom Bill Maloney Kirn A right, Bill, thanks and here live breaking news of your Bloomberg type squawk on your termin I'll escue you a w K and s a Bloomberg business flash. Now here's Michael Barr with Moore. I'm less going on around the world, Michael Karen, thank

you very much. Ukrainian President Zolenski warrn today Russia may be planning to frame Ukraine for an attack on the Russian controlled city of Curson in the coming days. As Ukrainian residents trying to recover from this week shellings continue, President Zelinski is warning of a quote large 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 lews Trust resigned following weeks

of political and economic turmoil. In baseball, the Yankees are down two games to ZIP against the Astros in the a l CS. New York lost last night Houston three two. In the NHL, the Devil's beat the Islanders for one. The Rangers and Capitals lost the Bruins one. In the NFL, the Cardinals beat the Saints Thursday Night Football and a big trade. The Panthers traded running back Christian McCaffrey to

the forty nine in exchange for draft picks. Global News twenty four hours a day on air and on Bloomberg Quick Take powered by More Event twenty seven under journalist and analyst more than twenty countries. How Michael bar this is Bloomberg. Karen right, Michael, Thank you. Sixty nine on Wall Street, we turned to news and science and technology now with the Bloomberg n j i T STEM Report, and it's brought to you by 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 edu slash transfer and here's just making news in science, Technology, engineering, and math. Japanese aerospace company I Space is targeting early to mid November for its first robotic lunar mission, which will send a lander and two small rovers to the surface of the Moon. If successful, my space will become the first private company

to land a spacecraft intact on the lunar surface. The world's population of wild mammals, birds, amphibians, reptiles, and fish have declined by more than two thirds on average since nineteen seventy. That's according to a finding and a report from the World Wildlife Fund. The report says that declining abundance sends a grimst signal about a decline in overall ecosystem health and tells us that nature is unraveling and climate change is pitting wild mountain goats against big horn

sheep and the Rocky mountains. They're battling over dwindling resources in the region. Scientists say the Earth's highest mountains are warming two to five times faster than the rest of the world, leading to receding glaciers and soil erosion and more interactions between the two and as the Bloomberg j

I T STEM Report. Nathan Okay, Karen, thank you. We are live from the Bloomberg Interactive Broker Studios where it's just about six fifty one on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include the U S eyeing an expanded tech ban on China, including Quantum and AI, the Biden administration winging security reviews for Elon Musk's deals including Twitter, and President Biden amping up the

volume on student debt relief after an early silence on the issue, Let's bring in Joe Matthew, our Washington correspondent, host of sound On on Bloomberg Radio. Joe as if tensions between the US and China couldn't get even more fraught. Now this great reporting from our tech team that the ban on tech exports to China could get into some

powerful new technologies. Well, that's right. This is a Bloomberg scoop and it's one that's awfully important, certainly for this conversation, as as the garden walls seem to keep going higher here, Nathan, the idea that you know, China, as a rival economically and possibly militarily, UH, shouldn't have these kind of technologies.

And we're talking about not just the semiconductors. That was last time we spoke, right, we put some pretty serious curbs on a semiconductors used for AI and so called super computing, and that made a mess of a lot of computer chip stocks, like in Video that specialized in that stuff. This is a whole other level here. We're talking about again artificial intelligence, but also the very experimental

field of quantum computing. That they don't want China to have access to here because it's potentially so powerful and so game changing. This is the type of thing that we want to keep right here in the USA. Well, if this goes through, if we see this export ban expand even further in this way, what could it mean for the dynamics in the US China power competition? Uh? Could we see a scenario where different allies are trying to pick sides here in terms of where to get

that leading edge technology. Absolutely, we have an economic cold war. I think it's pretty hard to UH to to not accept that at this point here. UH In moves like these are going to be very important years down the road when this becomes much more common UH technology. Look, we're in a world here now where China is really changing its posture on taiw On, for instance, and its role in the global stage. As president she tries to

secure this third term. There's been a major UH congress and conference that's been going on that took place over the last week in Beijing, and it's something that has US officials concerned here as we not only have a hot war underway in Europe, but a cold one between our country and China and a lot of confusion in the Taiwan straight. This is a story that really could continue to evolve as the United States looks for other ways to try to clamp down on China's access to technology.

As we are in a race here, a technological race to dominate the world. Frankly, yeah, and it's not just a geopolitical scale, but we're seeing new tech scrutiny domestically as well, with this report that President Biden might be looking at giving more scrutiny to Elon Musk's deals, including the Twitter buyout. I was just talking with Alex web on Bloomberg Quick Take, and he was saying, what an irony it would be if regulatory scrutiny is what keeps

Elon Musk from buying Twitter. Yeah, you know, even when you're the richest person in the world, you still apparently cannot always buy anything you want. And you have to remember, Elon Musk is just more than the guy who runs Tesla and has uh fun, you know, smirking on Twitter here. He is one of the most important and frankly, one of the richest government contractors in America here. And we're

not just talking about government contracting its military contracting. His company space x is charged with bringing literally top secret hardware on behalf of the Pentagon into orbit. He's launching secret Air Force satellites into orbit. This is a very sensitive job. That's why they started taking a second look at Elon Musk when he decided to, you know, to share a joint on Joe Rogan's podcast. They said, We'll wait a minute, what does that mean about his security clearance?

And that might sound like refor madness, but when you start seeing Elon Musk tweeting, uh, you know, withdrawal plans from Ukraine, trying to put out peace plans for that that that are friendly to Vladimir Poot And he also tweeted this image of himself with Kanye West and Donald Trump as sort of the three horsemen of social media over the weekend, and the government says, wait a minute, maybe we take a second look at this, And that apparently is what they're doing in our last minute or

so here. Joe. President Biden has been on the campaign trail. Of course, he was in Pennsylvania yesterday. Now he's going back to his home state of Delaware to talk about something that he really hasn't talked about much, even though you might have thought that it was, you know, a political feather in his cap, this loan debt. Great. Yeah, it's really interesting because this was this was a bit of a political risk. Obviously, it's something that makes his

base very happy. It's something that he promised on the campaign trail, but it's also very controversial and it's been deemed as totally unfair by his Republican opposition. Here I will mention, just for the sake of fairness, the President did uh talk about it briefly at a speech this week. He got a big round of applause for it. He likes to kind of hang that out there as a

piece of candy. But we haven't seen this coordinated push, this media push or campaign push to get this out in front of people, largely Nathan, because they're not exactly sure how it's gonna work, and there were fears about that portal being like the Obamacare port remember didn't work when they put it up there. Millions of people are gonna be requesting this stuff and they have to get

it right. But he will talk about it today in Dover, and I guess there's some question about whether there's gonna be much impact of this message coming out there with less than three weeks before an election and early voting already underway. Potentially with some of those college students, he's gonna be talking to you. Well. You know, this is why he was being accused of buying votes with this

particular plan. He's being accused of the same thing with, you know, releasing more oil from the spr with three weeks to go. But look, people who were promised this are aware of it, and if he didn't do it, it could potentially I think the analysis is have more damage on his standing for not making good on promises. Same reason he went after the marijuana issue that didn't quite get over the line that a lot of progressives

were looking for. But he's checking boxes. I promised this on the campaign trail, and I'm making good on it before November. Joe Matt you, host of sound on our Washington Correspondent, as always great to talk with you early in the morning before you come back five pm Wall Street time for Bloomberg Sound On. Catch it across Bloomberg Radio and get more on all these stories at Bloomberg

dot com or on the Bloomberg terminal. If you're in Washington, you can listen to us on Bloomberg one oh five point seven FM, HD two SMP futures right now are down fifteen point. Staff futures down seventy one. NASTAC futures down eighties six points. Check Twitter once again, just for fun, down seven point nine percent. Not fun for the investors in the social media company this morning. Ten year treasuries down ten thirty seconds, yield four point to seven percent.

Bloomberg surveillance is next. For Karen Moscow, I'm Nathan Hagar. Have a great Friday. This is Bloomberg.