Bloomberg Daybreak: October 24, 2022 - Hour 1 (Radio)

city subway system safer. Unlus Ukraine denies Russia's warning of a dirty bomb from Key. I'm Michael Barne. More ahead, I'm John Stashoward Sports. The Yankee season is overswept by the Astros. They'll play the Phillies of the World Series.

The Jets and Giants keep women. That's all s Trady Ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg ninety nine one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine team and around the world Bloomberg Radio dot com and via the Bloomberg Business. Good Monday morning. I'm Amy Morris and I'm Karen Moscow and US dot

index futures are lower this morning. We're coming up to five oh one on Wall Street and we check the markets every fifteen minutes throughout the training day on bloomberg S and p Future is down sixteen points, DWAL future is down one and NASDAG futures down. The tenure treasury up three thirty seconds, yield four point to zero percent, and the yield on the two year four point four eight percent. Amy Karen stocks are coming off their best

week since June. US central bankers say the next phase in their campaign to curb inflation will be debate on how to raise rates and when to slow the pace of increases. Lamar Villery as a partner in portfolio manager at Villery and Company and says a FED pivot is

key for some of it. It just would kind of give everybody, i think, a sense of confidence that you know, we're out of this uber high environment and potentially, you know, yeah, if if you know, if we get in placed under control and then the economy slows down, potentially you could see some rate cuts next year. Lamar Villery at Hillery In Company says there's even a chance the FED does not raise rates in December. Well outside of the Fed,

amy to focus this week is mainly on earnings. We get a big tech companies reporting and here are the preview as Bloomberry's Charlie Pellin, it's a huge week because we hear from names that will include Apple, Alphabet, Microsoft, Metal Platforms, Amazon and Intel. Den ives is with Wedbush Securities, and it's most important tech earnings teasing potentially in the last two years because of what's happened overall demand store. In terms of the macro, tech needs to prove it

the resilience is there and not just tech. This week, other big names include x On Mobile, three m Ford, Boeing, and Coca Cola, among many many others. In New York, Charlie Pellet Bloomberg Daybreak. All right, thanks Charlie. In Asia over the weekend, it was all about politics. President she Being started his third term by stacking China's most powerful body with his allies. The move gives him unfettered control

over the world's second largest economy. Speaking to the parties gathering on Sunday, she committed to reforming and opening up the economy. Here he is speaking through an interpreter. China's economy has great resilience, potential and latitude. It's strong fundamentals will not change and it will remain on a positive trajectory over the long run. China will open its doors ever wider. We will step fast over deepening reform and

opening up across the board. Markets did not react favorably to Si Jianping's move to stack his leadership ranks with loyalists. China's currency weekend and the country's stocks tumble to the lowest level since two thousand and eight. Bloombergy Daybreak Asia anchor Brian Curtis has more from Hong Kong. It's a sharp rebuke to one man rule, a break from collective leadership over the past many decades. It means more policy

staked on COVID zero and state owned enterprises. Alibaba, g dot Com and ten Cent all down eight to twelve during the session. Meantime, China's long delayed data showed mixed recovery in the third quarter. On employment rose and retail sales weakened. In September third quarters, GDP up three point nine percent, better than the three point three percent estimate in Hong Kong. Brian Curtis Bloomberg debreak, All right, thanks Brian.

Staying in Asia now, Former Treasury Secretary Larry Summers is weighing in on policy in Japan, and he is watching financial developments out of Tokyo given the potential for difficulties if the country abandons it's pegged bond yield policy. There's been a lot of borrowing money UH in Japan to finance things all over the world, and so if Japanese interest rates UH start to change, that could be a pretty big deal. Former Treasury Secretary Lawrence Summers made the

comments on Bloomberg's Wall Street Week. Catch that program every week Fridays at six pm Eastern on Bloomberg Radi oh and Television. Well in Europe this morning, Amy, the political action is still front and center. Richie Sunac has taken a big step toward becoming the next Prime Minister of the UK. And let's go live to London and get the latest of the Bloomberg's U and parts. Good morning, you Win, Good morning Karen and Amy. We should know

the name of Britain's next Prime minister later today. Former Chancellor Rishi Sunac is the clear favorite to take over as the country's fifth leader in less than seven years. His only remaining opponent, Penny more Than, is yet to get the one endorsements from lawmakers need to make the final runoff. Boris Johnson, who cut shorts his holiday in the Caribbean to fly back to the UK now, says it's not the right time to enter the race in London.

I'm you and pots the midday break, all right, thanks you, And oil is lower to begin the week right now now, i'm x crude is just down at two percent. President Biden's top energy advisor, Amos Hoxtein, is taking aim at Opec, saying that OPEC's recent output cut was largely a political move.

Nobody can argue that it was warm to for any economic reason today and even open when they announced a two million and then they say, well, we're not actually gonna cut two million, We're just gonna cut nine hundred, and then you look a little deeper and it's really just about five hundred. So the impact on the market is not going to be as significant. Uh So this was more of a big political statement. Ms ox Seen making those comments on CBS Space the Nation. Catch that

program every Sunday here on Bloomberg Radio. Well, speaking on political moves amy the January six hearings on Capitol Hiler back in focus. Co chair in the January six committee list, Cheney says Donald Trump will not be allowed to testify live on television before the committee. On Bloomberg said Baxter has that story. Cheney says Donald Trump will not be allowed to turn any testimony before the committee into a circus.

This isn't going to be, you know, his first debate against Joe Biden and the circus and the food fight that that became this. This is far too serious set of issues, and we've made clear exactly what his obligations are. Training on NBC has heard on Bloomberg says a level of discipline and vigor that the herring deserves will be observed.

In San Francisco, I'm at Baxter Bloomberg Daybreak, all right, and thank you, n S and P. Futures lower down about fifteen points down, Futures down a hundred four, nunsday, Futures down fifty nine and straight ahead your latest local headlines, plus a check of sports and this is Bloomberg. Thank you, Karen. Five oh seven on Wall Street. Let's bringing Michael Barr with more on what else is going on in New York and around the world. Good morning, Michael, Good morning Amy.

New York Governor Kathy Hokel and Mayor Eric Adams saying they will bolster spending on the city subway system. They plan to add sixty two million dollars to deploy more police officers and removing severely mentally ill homeless people amid a series of high profile killings and other crimes on the transit system. HOCl and Adams acknowledge that writers continue to feel threatened using the largest mass transit system in

the US. In one reason attack, the NYPD is searching for a man seen pushing another man onto the subway tracks in an unprovoked attack and then running away. The victim, David Martin, suffered a broken collar bone and stroll in face because from New York and love New York and always felt they've taken the train. And now it's thirties, two years old, I no longer feel safe and that's

that's not there and that's not okay. The announcement comes nine months after Hocal and Adams unveiled a subway safety plan. Governor Hocol and her Republican challenger, le Zelden with face off Tuesday in their one and only debate before election day. HOCl, who once held a double digit lead over Zelden, has only a four percentage point edge according to the latest Quinnipiac University poll. However, a Sienna College poll gave Hocal

and eleven point lead. Released on the same day. Bill reform has become a major issue in the campaign ahead of the November mid term elections. New polling shows that both parties have their areas of strength, but Republicans are strutting to open up a gap on some of the big issues, including inflation, crime, issues around the economy. Mark Short, the former chief of staff Vice President Mike Pence, says Republicans are going to win in November because it is

a referendum on Joe Biden. Is clear that Donald Trump had a huge influence over the primary. He has a core base of roughly and a lot of the candidacy championed one with thirty three this primary. Mark Short spoke on ABC's This Week, which can be heard Sundays on Bloomberg. Russia's defense chief has alleged that Ukraine was preparing a provocation involving a radioactive device star claim that was strongly

rejected by US, Ukrainian and British officials. Russia repeatedly has made allegations that Ukraine could detonate a dirty bomb and blame it on Moscow. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and analysts more than a hundred twenty countries. Michael Barr and this is Bloomberg Aamy. All right, thank you, Michael, five or nine Will Street. I'm now for the Bloomberg Sports Update, brought to you by Trice State Audi. Here's

Jones stash Our. Thanks to Amy. For so much of the summer there was talking maybe a Subway World Series in New York. Instead, the World Series will be the Phillies against the Astros starting Friday in Houston. The Astros still haven't lost to the postseason. Early on at the

Stadium looked like the Yankees might stay alive. They led three nothing, and after you get another Harrison Bader home run, they were up five to four in the seventh inning, but the Astros scored twice, game tying hit by Jordan Albarez of Jonathan Lowisa, go ahead hit by Alex bregmanoff Clay Holmes, and the Astros won six to five for the series sweep and their fourth pennant in the last six years. Aaron Judge made the final out. It ended

his historic home run hitting season. Did it end his career with the Yankees, will be a free agent Earlier On a rainy day in Philly, the Phillies trailed the Padres. In the eighth inning. Suarez delivers swing in a dry left field, H's deep blooms place Harper puck the Phillies on top. W I p the call Harper and the Phillies won four to three on the NLCS four to one. While baseball season in New York is over, football is alive and well. Giants and Jets both won for the

fourth week in a row, both on the road. The Giants wouldn't get another comeback to win twenty three to seventeen, and Jacksonville, they had to hold on at the end, had to hold on to the Jazz wide receiver at the one yard line on the final play the Jets won sixteen to nine in Denver. Giants and Jets have combined to play seven road games. They are seven and oh in them that The Garden Rangers lost at Columbus five to one. Islanders lost at Florida three to two.

John Stashwar, Bloomberg Sports Team, all right, thank you, John. Checking the futures now, SMP futures down, thirteen, dal features down on Nasdaq futures down fifty four, ten year treasury up six thirty seconds, the yield at four point one nine percent. Much more still to come on Bloomberg Daybreak. Stay with us on this Monday morning. This is Bloomberg. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the autie model

you've always wanted. Visit your local, try 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 Outland at Bloomberg Quicktape's a Bloomberg Business

Flash and I'm Karen Moscow. Songs in Europe pairing games and US futures are declining as a route in Chinese shares ways on sentiment while investors wait the next for the next batch of earnings from some of the world's biggest companies. Treasury yields are dipping. The dollar is gaming. We checked the markets every fifteen minutes throughout the trading day. On bloomberg SMP future is down about twenty points this morning.

Down futures down a hundred forty you nownsday futures down seventy eight the decks in Germany's up a third of a percent, and your treasury up seven thirty seconds yield four point one eight percent. They yield on a two year four point four seven percent. Nine X Screwed oil is down two point one percent on a dollar seventy five at eighty three dollars thirty one cents a barrel comic schooled at a quarter percent or four dollars ten cents at sixteen fifty two twenty announced the euro point

nine eight three zero against the dollar. British found one point one three one four the en one nine point three five and I'm looking at a bitcoin it's down nine ten percent. In nineteen thousand three hundred dollars. That's a Bloomberg Business Flash. Now here's Muchael Barr with Moore on what's going on around the world. Muchael, Good morning, Good morning Karen. Former British Prime Minister Boris Johnson says he will not run to leave the Conservative Party, ending

in tense speculation about a comeback. Johnson, who was announced it in July and the ethics scandals, was a wild card to replace liszt Trusts, who quit last week. Is withdrawal leaves former Treasury chief Rieshie Sooner the strong favorite to be Britain's next prime minister. In baseball, it will be the Astros against the Phillies in the World Series. The Yankees were swubbed by Houston Sunday in the ALCS

in Game four, six five. The Phillies beat the Padres four three to win the NLCS four games to one. In football, the Giants Jets Commanders all one. Thet Is lost in the NBA, The Wizards lost the Warriors one. In the NHL. The Islanders and Rangers lost. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyst more than a hundred twenty countries. I'm Michael bar This

is Bloomberg all right, Thank you, Michael. It is five twenty on Wall Street where live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we're joined now by Dennis Gartman, University of Akron Endowment chairman and former publisher of the Guardman Letter. Dennis, it's always a pleasure. Thank you so much for taking the time with us this morning. Um, you have predicted this market will be getting uglier and counting weeks. You've embarrassed for a while.

What could possibly change your mind? The only thing that will change my mind is if the Fed changes its mind, and I don't think the Fed has any intention of changing its mind at this point. The FED has lost a great deal of credibility and it's trying to re earn its credibility back. It's said that it's going to

continue to tighten monetary policy. We know that the FED has a great job to do, a difficult job to do with reducing the size of its balance sheet, which has gone from nine billion dollars to nine trillion dollars over the course of the last several years, and the FED has said that it's going to allow the the balance sheet to roll off by about billion dollars a month.

It has to continue to do that, and I think that the FED has made it abundantly clear that it's going to tighten monetary policy and allow the overnight FED funds right to go to at least seventy five basis points in the NOVA the impending November meeting, and I think they're going to take it another fifty basis points at the December meeting. After that, they may stop and see what happens, but I think the major trend is

still downward. You've had a nice technical bounce. Technical bounces are to be expected after the kind of selling that we've seen in September and October. I think this bounce shall not last very much longer. And I think that the overnight the response that we've seen from China, with Hong Kong down almost six percent puts a puts the top to the market for the for the near term. So I've been very very since basically December thirty one

to last year, and I continue to be barrish. I think you should use strength to reduce the size of your positions and again and raise cash you are and you made a lot of points in there. I want to ask about a couple of them, especially that bounce that we've seen in the past week. You don't think this one could have more staying power than when we saw a month ago. It may have a little bit more staying power. We've gone up a little bit. We've we've gone up on a little bit better volume, which

I pay attention to. I I don't tend to I don't tend to pay much attention to technicals all the time. But I watched to see how markets respond. If they're rising on stronger volume than they're falling, that that's impressive. And this one has has done a little bit better than than the rally that we saw previously. I don't think it has a great good deal more strength to follow too. I thought, I thought we get to thirty eight hundred, maybe thirty eight fifty on the SMP. We've

gotten to thirty twelve. That's close enough for folk music, as I like to use, as I used to say, close enough for government works. So I think that we probably have run most of the upside out of the market at this point. Now, as far as the Feds increasing rates, the conventional wisdom had been sort of anticipating that they would stop increasing rates, maybe in the first half of next year, and perhaps not even see a rate increase in December. But you're not convinced. Why is that.

I think we still continue to see inflationary pressures abundantly obvious around the around the country. Food prices continue to rise, car prices are rising, home prices. Home prices at least have stopped for a while because of the rise and interest rates, But inflationary pressures seemed to be abundant and evident and extant and continue. I don't think that's going to stop anytime soon. Look at what grain prices have been doing. They've been going from the lower left of

the upper right. Look at what lost prices have been doing. They've been going from the lower left of the upper right. And even crude oil prices have stopped going down and have started to turn for the better, turning to the upside.

So I think inflationary pressures continue to be abundant and continue to be evident, continue to be detrimental to the economy generally, and I think the FED wants to continue to fight that, so will they Will they raise rates in in I have my doubts as to whether they'll raise rates, But I think once they get to another hive basis points higher, it will be a long time before they before they pivot. I think it'll be a

year or more before they even consider pivoting. So anybody who hopes that the FED is going to pivot and stop tightening and start to ease, I think you can put that aside for several years. All right, Dennis, we haven't about a minute here. Just what do you recommend? What are our next steps? I think the recommendation is to continue to raise cash. Two year notes at the four in a quarter percent seemed to be a good

place to hide money for a while. Raise cash reduced the size of your positions in the in the equities market, use strength to become less involved. And uh, if you have to be involved, look for high dividend players that have had substantive that that have paid their dividends for years in the past and are well covered. So be careful. I've said that for months. I'm going to continue to say, be careful out their race cash and and and be less involved. Very briefly, what do you think about gold?

Very briefly, I think it wants to go higher. I think Let's Friday was a reversal day to the upside. You made a new load, you turned higher on the day, and I think gold wants to go higher from here. That's perfect. Dennis Gartman, University of Akron and Dowmont chairman, former publisher of The Gartman Letter. It is always a privilege to get your insights, sir, Thank you so much for joining us this morning, and we much more still

to come on Bloomberg Daybreak. Checking the markets now. S and P futures down twenty one points, Daal futures down one hundred fifty one point, Nasdaq futures down just about seventy nine points, the ten year treasury of six thirty seconds, the ten year yield at four point one nine the two year yield four point four eight percent, still ahead. On this Monday morning edition of Bloomberg Daybreak, Markets the latest news and business, economics and finance. This is Bloomberg.

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is brought to you by SEI. Built on advanced technologies and fifty years of innovation, SEI offers Asset Managers, a comprehensive and flexible operations outsourcing platform. Go to se i C dot com Slash Managers and we're just about four hours away from the open of US trading. Let's get you up to date on the news you need to know at this hour. US futures are lower this morning as you begin a new trading week. Stocks are coming off their biggest weekly gains since June. The action this

morning is in Asia. Hong Kong's Hang Singing Next drop six point eight percent and stocks in China fell almost three percent. After President Shei jin Ping's moved to stack his leadership ranks with loyalists. We get more from Bloomberg Stephen Angle and Hong Kong. We speculated whether she would continue on with the practice of essentially stacking the Standing

committee with people from different factions. So in this case, some of the hu Jintao pro to Jay's but it proved on Sunday when they rolled out his other six members on the Standing Committee, there was nobody from the other factions. They were all loyalists to Shi jin Ping. He stacked the deck, and Bloomberg Stephen Angeles said, the story is playing out in currency markets. The you on

weekend to a fourteen year low this morning. Let's turn to Europe now, where really Sunak has taken a big step toward becoming the next Prime Minister of the UK. Boris Johnson has pulled out of the race, sunk won the endorsement of Chancellor Jeremy Hunt. Still Bloomberg's Stephen or rather Ben still says SUNet faces many challenges. He himself was blamed by a large faction of party for bringing

down Johnson in July when he quit on that dramatic evening. Um, So there's a lot of resentment, a lot of a lot of ranker built up over the year. So that's gonna be the real tough ask for him, and of course he's going to have to do. It's during the economy to this brutal, brutal winter of energy, energy shortages, and Bloomberg's band still says Sunac has gained the public support of several key Tory figures. Well back here in the US, Amy, it's a busy week for earnings of

big tech leading the way tomorrow. We're here from Microsoft Meta Platforms and Twitter report on Wednesday, and Apple and Amazon post results Thursday. Incorporate news. Tesla cut the price of its cars in China by about five percent as it ramps up production at its Shanghai factory. The move partly reverses price hikes imposed earlier this year, and futures

this morning are lower. SNP futures down twenty points down, futures DOWNY futures down seventy seven straight to hand your latest local headlines, plus a check of sports, and this is Bloomberg. Thank you, Karen. Five thirty three. Now on Wall Street, we bring in Michael Barr with more on what else is going on in New York and around the world. Good morning, Michael, Good morning Amy. New York will add sixty two million dollars to the city subway system.

Governor hocol and Mayor Eric Adams saying they are deploying more police officers and removing severely mentally ill homeless people amid a series of profile killings and other crimes on the transit system. It comes as hocal and a Republican opponent, Les Eldon will debate tomorrow on the governorship on issues

such as crime and bail reform. Russia's defense minister called his counterparts in the UK, France and Turkey, warning of a drift towards uncontrolled escalation in Ukraine and the potential for Kiev to detonate the radioactive dirty bomb. The US called the allegation transparently false. Meanwhile, Ukrainian forces continue to deliberate villages as the war drags on. For close to eight months, ABC talked to Ukrainian Colonel General Alexander Schersky

about the war so far, Chersky, through a translator. Of course, we are winning, and it's important that we are winning mentally. But we know what they're fighting for. But still this is very hot. General Sharsky says they are concerned about the Russia's continuous nuclear same A rattling Russian President Vladimir Putin was quick to congratulate Shi Jing Ping yesterday after the Chinese leader secured a third term as head of

the country's ruling Communist party. Disgrace movie producer Harvey Weinstein stands trial in Los Angeles starting today for allegedly sexually assaulting women. Dozens of his alleged victims say judgment day is overdue for a serial predator. Party you missed with the wrong women. We will see you here in Los Angeles, where hopefully your conviction will leave you in jail for life. Weinstein is already serving the twenty three years sentence in

New York State for similar charges. Global News twenty four hours a day on air and on Bloomberg Quick Dank, powered by more than twenty d journalists and analyst, are more than a hundred twenty countries. Michael Bard, this is Bloomberg in all right, thank you Michael on Wall Street. Time now for the sports were for it brought to you by Tri State Autie. Here's Joe's our alright, Amy

Yankee fans at High Hope. So after a tremendous first after the season, second half not nearly as good, and the postseason big disappointment, not only losing to the Alcs to the Astros third time in the last six years, but getting swept Houston finished the sweep at the stadium six to five. Yanks finally scored some runs. Harrison batter at his fifth home run of the postseason. Yanks let five before the Astros then scored twice in the seventh inning.

Several Yanks had a rough series. Josh Donaldson thirteen at bats, ten strikeouts, Aaron Judge just one for sixteen, and now Judge, after his record breaking sixty two home run season, becomes a free agent. You know, I haven't even have even thought about the next step yet. Uh you know, but like I said, we got we got time to figure it out. Um. You know, I've never been in this Philly surprise winners of the Nashale Bryce Harper gave wanting to run Homer the eighthenning to beat San Diego four

to three. When the NLCS four to one World Series starts Friday in Houston, Giant and Jets keep winning for both four wins in a row. Both unbeaten on the road Giants one of Jacksonville three to seventeen. Both say Juan Barkley and Daniel Jones ran for over a hundred yards that Jets won sixteen to nine. In Denver, Rookie Breeze All had an early sixty two yard touchdown. Later he heard his knee. It will need to be a season ending to an a c L big NFL story.

The struggles of Green Bay and Tampa Bay, both NFC teams with legendary quarterbacks, are three and four. Packers third straight loss, beaten by Washington, Tom Braiding the Bucks one to three at Carolina. Rangers and Islanders both loss. John Stashar Bloomberg Sports, All right, thank you, John. It's five thirty seven on Wall Street time now for the Tri State Business Row Board. Here with that is Bloomberg's Denise Bella Greeny. Some big price cuts on real estate if

you can close fast. President of New Jersey Realtors, Robert White, says inventory is growing. What is also a broker with Coldwell Banker Spring Laken, and he says he's seeing price cuts for adult communities. The Auto Group says the largest supply of unsold homes in Jersey is in the one to two and a half million dollar range. Insurers in Connecticut spent more to cover administrative costs of medical claims

in the second year of the pandemic. That's according to a new government report card on the industry and Cossa Cruz in the Headlights. Vogue calls the sixty feet Street dining room New York's most glamorous new restaurant, but The New York Post says it's Steph has been trying to book a table there for weeks and their calls haven't been returned. The paper has claimed that Cossa Cruz is strictly a private club for wealthy investors who pay big

bucks to join something. Cossa Cruise has pushed back on with the Try State Business Report. I'm Denise Pelgrini, All right, thank you, Denise. On Wall Street. Bloomberg Radio was on the air from San Francisco to New York, London to Hong Kong, let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve polask

X in Los Angeles. We're talking about top business economists saying if we're not already in a recession, we likely will be soon. Um Courney Donaho on KA terr H in Houston. The majority of working Americans feel behind on retirement savings. I'm Gina Servetti in for w c c O in Minneapolis. I'm reporting that Hormel Foods is in talks to take a bite out of an Indonesian snap food maker. I'm Jeff Belinger and on WBC in Boston, I'm reporting that a casket made by an andover, Massachusetts

company shows up in a Taylor Swift video. I'm Stephen Carol and Bloomberg d A B Digital Radio in London. We've been reporting on Conservative Party heavyweights lining up to support Richie Snack in the leadership race. I'm Dense Pelgreny and on ww J in Detroit. I'm reporting on general motors new drive to get workers back to the office. And those are some of the stories our hundred Bloomberg journalists and analysts are working on this morning around the world.

It's thirty nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. The Federal Reserve is among the world's most powerful institutions. When its policy makers act, they have immense potential to move markets. It should be obvious, then, that FED officials need to carefully weigh when and where

they speak. Apparently it's not obvious enough. Earlier this month, the president of the St. Louis FED spoke at a private event that city group, a bank overseen by the FED, had arranged for a select group of clients. His comments reportedly touched on monetary policy and financial stability, topics that could hardly be of greater importance. FED officials shouldn't be permitted to share their views on monetary policy in a closed forum, let alone one arranged by a for profit enterprise.

The Central Bank is supposed to be regulating, the Federal Reserve should ensure that no policy maker is giving away what rightly belongs to the public. This 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 weekday at this time, and terminal customers can read more at Opie I n go.

This is Bloomberg. The Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the autie model you've always wanted. Visit your local try 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. This is a Bloomberg Business Flash and I'm

Karen Moscow. Songs in Europe are pairing in their gains, and US DOT Index futures are on the A client is a route in Chinese shares ways on sentiment for investors away the next batch of earnings from some of the world's biggest companies. Treasury yields are dipping, the dollar is gaming. We checked the markets every fifteen minutes throughout the trading day on Bloomberg guess and P futures down nine points, DAL futures down sixty six, nasdack futures down

forty two. The decks in Germany is now a half percent. Ten year treasury up six thirty seconds, the yield four point one nine percent. They yield on a two year four point four eight percent. Nine x Scrude oil is down one point seven percent on a dollar forty three at eighty three dollars sixty two cents. A barrel comic school down a third of a per cent, or five

dollars fifty cents at sixteen fifty eighty announced. The euro point nine eight one six against the dollar British found one point one three one six and the end one forty nine point four six. And looking a bitcoin, it's sound about seven ten percent at nineteen thousand, three hundred seventy 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. The U S and two of its allies are accusing Russia's defense minister making false allegations after he claimed that Ukraine was planning to use a so called dirty bomb on its own soil. In baseball, it will be the Astros against the Phillies in the World Series. The Yankees were strut by Houston Sunday in the ALCS in Game four, six five, the Phillies beat the Padres four three to win the NLCS four games to one. In football, the Giants, Jets, and Commanders all one.

The forty Niners lost in the NBA, the Wizards lost, the Warriors won in the NHL, the Islanders and Rangers lost. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than hundred journalists and analysts more than a hundred twenty countries. Michael barn this is Bloomberg Gamy. All right, thank you, Michael. It is on Wall Street. Time to check in with the Bloomberg Government. We're joined now by Bloomberg Executive editor for

International Government, Ros Matheson Rossetts. Plus sure, thank you for taking the time. A lot happened over the weekend. Could you bring us up to speed on where things stand now in the run for UK Prime Minister. Well, we might actually have a result as soon as today. And piece of who the new UK Prime Minister might be. We were looking at a race of three that included the former Prime Minister, Boris Johnson, but he announced last night that he was not going to put his name

into the race. That says there were doubts about whether he had enough support from the Tory lawmaker ranks to put his name on the ballot. So now we're down to Richie Sunac, the former Chancellor, and Penny Mordant, who's the Leader of the House of Commons for the Tory Party. Are those two going head to head? We know that Rischie Sunac has enough backing from Tory lawmakers to get on the ballot. There's been a wave of endorsements for

him this morning. There's some doubt over whether Penny Mordant would actually get enough to put her name in. Officially, she says she's still in the race. She says she's getting the members, but that remains to be seen. Either way. We could get to a point this evening where there's either a vote amongst Tory lawmakers between the two or she simply doesn't get enough to get on the ballot.

So we could actually get a result this evening and it's looking at this stage definitely favorable towards Richie Senate becoming the new UK Prime Minister. Whoever the person is who takes over this party and who wins, is going to have a full plate and trying to bring unity to the party. What has to happen for this person, whoever it is, to be successful. Well, there's a lot. As you say, I mean that the starting point is simply that the Tory Party has been essentially tearing itself

apart publicly for months now. There's been a high level of sniping between different factions and the Tory Party, disagreements bruising leadership contest before even this round, and of course the sudden resignation of Lizz Trust as Prime Minister. So there's a lot there for a new leader to do in terms of just trying to stop what is essentially a civil war going on inside the Tory parties. You've

got to do that. Then you've actually got a bunch of economic challenges on your plate that required quick attention, reversing all of what Liz Trusts economic policies were working out. What tax policy is, health spending, defense spending, pensions, obviously, tax tax rates now going forward. And then of course there's the UK externally. What's its role in supporting Ukraine still against Russia, what's its policy on China? What a

relations like with the US? Has trade tensions rise across Europe? So there's a very very full plate there for whoever gets in the chair, And all of that really is quite urgent, so none of it really can be put off till later. So we only have about a minute here. But what are you watching for, particularly now that Boris Johnson is not in the running. Could he still have

a little influence, some influence over whomever occupies number ten? Well, certainly he does have a level of support still amongst story lawmakers and more importantly sort of amongst Tory members as a whole in the voting a lecturer. And that's something to bear in mind, is what is the role of Bis Johnson going forward? He's still a member of Parliament? Does he fight his time for a potential later come back?

Who does he throw his support behind um? He could be quite a disruptive presence because of course he and soon At had a very nasty public falling out, so we need to see that also. Those are big questions obviously again for whoever wins. All right, Bloomberg's executive editor for International Government, Ros Mathieson want to thank you for taking the time with us, and we are looking to see who winds up in the in the head of UK Prime Minister. That could happen as early as today,

Karen Amy. It is five or fifty three on Wall Street. Time for our Bloomberg Law Report. Let's get to legal stories we're watching this morning from Bloomberg's Joan Donagher. Lawyers are among the workers pushing back against turn to work orders. In American Bar Association survey finds forty four percent of lawyers with ten years or less of experience say they will jump ship for a job that offers more free too more remote work. Paloton is facing a lawsuit from

Taiwan based Johnson Health Tech. It charges Peloton's treadmills and fring three company patents, and a federal appeals court ruling means thirteen states have to wait until an agency uses Biden administration estimates on the costs of greenhouse gases before charging those estimates cause harm. 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. Right, John,

thank you. Another legal story we're watching. The Insular Cases are a series of rulings from the nineteen hundreds which are almost universally described as racist, establishing that people in US territories don't have all the constitutional rights of Americans. Conservative Neil gore Such has described them as shameful and based on ugly racial stereotypes. Core As Such and liberal Justice Sonya Soto Mayora have called for them to be overruled.

Yet the Supreme Court turned down a case involving American Samoa's that could have done just that. For more, Bloomberg Stuon Grasso space to m. Lafazzo at Constitutional law professor at the University of West Virginia Law School. So these Insular cases, Conservative Justice Neil Gorcich and liberal Justice Sonya Soto Mayor have both expressed concern about the Insular Cases remaining on the books, but neither of them dissented here. Well,

there's a couple of things going on here. They may not have had the votes to overturn the precedent, so why even go there. There were also a lot of problems with this case, Samoa is very unique. It wasn't part of the original Insular cases, so they could decide this case purely on constitutional grounds and not go to the Insular cases. There is no split in the circuits on this issue either. Six courts have looked at it,

all six have agreed. The second of all, when the Supreme Court takes a case, it doesn't just take it because it thinks it's an important federal issue. There's what's a good vehicle for deciding this case. That means there aren't any extraneous issues that could prevent them from coming into a conclusion because they don't even have to look at the Insula cases to decide this. So that's why it would be considered a poor vehicle for revisiting the

Insular cases. Politics are also involved here. Might that be another reason the Court didn't take this case. Currently, there are negotiations between the United States and Samoa about how to progress preserve the Samoan way of life, and so there's a lot of concern among the Samoans and the government of Samoa that a birthright citizenship might disrupt their

way of life. The Samoan people right now have not reached a consensus as to whether or not they want to have citizenship, and there's a streamlined process for people born in Samoa to become US citizens. So that means that many Samoans might say, well, we still don't want the birthright. If an individual wants to become a U. S. Citizen, they can, It will be very easy. And I know many of us in the United States might say why

would anyone not want to be American citizens? But some people don't, So I think that's also important to respect. And that was one of the points that the brief of the Samoan government made, is like, why would we want this court by judicial fiat to impose U. S citizenship on every person born in Samoa where right now there is not a political consensus, So it would almost be colonization in a different way by judicial fiat saying

now you are automatically U. S. Citizens. And so there is this political dimension that perhaps the court didn't want to wait in on. And that's m Afazzo, a professor at the University of West Virginia Law Schools, being into

Bloomberg's June Grosso. Catch more of that interview, plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time or subscribing to the Bloomberg Law Podcast, and attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com. SMP futures they have been trimming their gains there up four points right now, DAL futures of thirty three and

NASTAG futures are now little change. The decks in Germany's up nine tenths of upper cent ten year treasury up ten thirty seconds. He had four point one seven percent and the yield on the two year four point four seven percent. Nine nights, screwed oil is down one and a half percent, and again SMP futures are higher, up three. This is Bloomberg