Bloomberg Daybreak: October 25, 2022 - Hour 1 (Radio)

and rest in an attack in the New York subway system. Plus, it's debate night for Democratic Governor hokel and a Republican challenger Lees heldon. I'm Michael Barr. More ahead, I'm John Stash. Sports. The Knicks bat Orlando. The next lost in Memphis. The

Bears beat the Patriots in Monday Night Football. That's All's trading ahead on Bloomberg day Break on Bloomberg Eliven Free on New York, Bloomberg ninety nine one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, Syrius x AM one nine team, and around the world on Bloomberg Radio dot Com and via the Bloomberg business Side. Good morning, I'm Nathan Hager and I'm Karen Moscow. US

stock 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 trading day. On Bloomberg S and P Future is down about nine points down, futures down eighty Nastack futures down thirteen. The decks in Germany's down half percent, CAC in Paris up three tenths percent, and the foot Sea one hundred is down four tenths of a percent. Ten year Treasury up seventeen thirty seconds.

He had four point one seven percent. They yield on the two year four point four seven percent. Nine Max Screwed oil is down eight tenths per cent or sixty nine cents at eighty three dollars eighty nine cents a barrel comes called down four tenths per cent or six dollars forty cents at sixteen forty seven sixty an ounce. The euro point nine eight five nine against the dollar. Nathan Karen. Stocks are coming off two straight days of games.

Yesterday saw a broad based rally, with more than eighty percent of stocks in the SNP five index closing higher earnings. Optimism and speculation the Fed will slow its space of interest rate hikes helped fuel the one point two percent gain. Ben Kirby is co head of investments at Thornburg Investment Management.

You know, when you look at the surveys of bowls versus bears, there's way more bears than there have been in a in a long time relative to bowl so that at least augers I think for the potential for for a snap back. Um, how sustainable that is as the economy slows again, That's that's kind of big question. Thornburg Investment Management's Ben Kirby thinks we're nearing a peak for interest rates. Well. In Asia, Nathan, it was a

volatile session following yesterday's historic sell off. A benchmark Tank index in Hong Kong bounce between gains and losses and eventually closed up more than one percent today. That index plunge more than seven percent yesterday on the prospects of more market and friendly policies during President she j and pings their term well, while President she stacks his country's top post with allies. Karen White House advisors are working on a meeting between the communist leader and President Biden.

Amy Morris has details from our Bloomberg newsroom in Washington. State Department spokesman Ed Price says she's moved effectively. Tearing down divisions between party and state won't change the US approach to China, a strategy that includes competing on security matters while cooperating where they can on global issues like climate change, global health, and counter narcotics. National Security Council spokesman John Kirby says they're working on a possible meeting

at the G twenty in Bali next month. Even as there are fewer voices at the top two questions, she's more restrictive policies in Washington. I'm Amy Morris, Bloomberg Daybreak, right, Amy. Thanks. In Europe today, Richie's Sunac is said to become the UK's third prime minister in as many months. And let's go live to London and get the very latest with Bloomberry's un pots. Good morning Ewen, Good morning Karen and Nathan. It's just seven weeks since Lisztroust travel to meet Queen

Elizabeth to become Prime Minister. Later today, the UK will have another new leader. Former Chancellor Rishi Sunac will meet King Charles this morning after winning the supports of Conservative lawmakers. His first task as Britain's new Prime Minister will be to appoint his top team as he seeks to reassure nervous investors. Jeremy Hunt is likely to remain as Chancellor in charge of the nation's finances. In London, Immune posts back day break, okay you and thank you. Let's get

back to markets nowhere. It's a busy day for earnings. Shares of HSBC OR down more than six percent this morning. The bank reported higher than expected charges for possible loan losses in its third quarter. While HSBC joined other banks in posting profits the beat estimates, its low lost provision was almost a third higher than a Bloomberg compiled consensus. Well on the flip side, shares of UBS SIRR up

one and a half per cent. The Swiss bank reporting better than expected profit in the third quarter as higher interest rates helped offset lower client activity. We caught up

with UBS CEO Ralph Hammers, was volatility. Volatility in the foreign change markets where we profited a lot actually this quarter, which will also see that volatility leading to further sure with our emphasis with our clients right on the well side, and that in certainly is actually it translated into the need for further guidance our clients right, and again we need more guidance. EBS CEO Ralph Hammers made the comments

in an interview with Bloomberg's Menace Cranny Here. More of that conversation coming up shortly right here on Bloomberg Daybreak. Back here in the US care in a busy week for tech earnings kicks off this afternoon, with both Alphabet and Microsoft reporting. We get a preview on Microsoft from Bloomberg's Jeff Bellinger. Bloomberg Intelligence says the software giant could

potentially surpass the four consensus for sales growth. Microsoft is seen as the company that stands to benefit the most from the growing digital shift as clients upgrade their technology, But the company's earnings come at a time when there is foreign exchange pressure and there are concerns about weakness in its PC business. Microsoft is in the process of

laying off about one thousand workers across multiple division. Jeff Budinger, Bloomberg Daybreak All right, Jeff, thanks, While another corporate news this morning looks like Adidas is cutting ties of Kanye West to get the details from Bloomberg's Lisa Matteo. Bloomberg News has learned the German sports company plans to end its partnership with the rapper and designer following a rash

of offensive behavior. West, who now goes by Ya, has made controversial statements, including anti Semitic social media posts in recent weeks. The Adida's decision follows weeks of deliberations inside the company, which, over the past decade has built the Easy Line together with Ya, into a brand that's accounted for as much as eight percent of Adidas's total sales.

According to several estimates from Wall Street analysts, Adidas would joined Gap and Carrying's Balenciaga fashion label and prematurely cutting ties with West. Lisa Matteo Bloomberg Daybreak All Lisa, thank you, and shares of Adidas are falling on the news of its break up with Kanye West. Shares are down more than three percent in Frankfurt, and futures are moving a touch low are now caring, with SMP futures down nine points now down, futures are down ninety two and NASTACT

futures are lower by sixteen points. Ten Your Treasury is up sixteen thirty seconds the old four point one seven percent yield on the two year, four four seven. Straight ahead, your latest local headlines and to check of sports. This is Bloomberg South five oh seven on Wall Street. You've got some fog sixty three degrees in Central Park. It's slow on the cross Bronx between Third and Webster because

of construction. 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 Man is in custody in New York City for last week's violent and unprovoked attack on the subway. Writer forty one year old Lamal McCrae, who police say has an extensive criminal history. It's now accused of shoving thirty two year old David Martin onto the train tracks at the Brooklyn

Subway stop last Friday. Martin survived, but his family says he's traumatized and suffered a broken collar boom. The attack prompting the NYPD to step up its presence at subway stations. Meanwhile, commuters are now searching out places along railings on the platform where they feel they can't be assaulted. The m t A is now also trying to gain the authority to ban people with convictions that include violent crime on the ground from using the subway system. There was a

tragic accident and the subway in Manhattan. Authorities say a commuter was struck and killed by a one train at fifty ninth Street Columbus Circle yesterday afternoon after getting caught in the doors. Officials say the twenty year old man was dragged by the train after a piece of clothing got caught him the subways doors and then was fatally struck. Its debate night between New York Democratic Governor Kathy Hokel

and a Republican challenger, Lees Eldon. The two are expected to debate such topics as crime and the state's bail reform laws. Hocal and Selden will hit the podiums at seven pm. Florida's Governor Rhonda Santists declined to say whether he'll run for president as Democrat Florida Governor h Charlie christ Rother debated ahead of next month's elections. Governor to Santists, defendant laws passed during his term that restricted the teaching

of racial and gender issues in Florida schools. I'm proud of our history. I don't want to teach kids to hate our country. I don't want to teach kids to hate each other. And the way to stop discrimination on the basis of race is to stop discriminating on the basis of race. The debates airing on wp e C Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael Barr

and this is Bloomberg, Nathan. Thanks Michael. It's five oh nine on Lall Street. Time for the Bloomberg Sports Upday for you buy tri State Abbey. Good morning, John Stanshow, Good morning, Nathan. The Jets, having won four in or All, perhaps tuned into the Monday night, came to watch the Patriots two of the jets next three games versus New England, who got surprisingly blown out at home by Chicago thirty

three to fourteen. The Bears scored the last twenty three points they had rush the Pats two hundred forty three to seventy a fourth four turnovers. Mac Jones returned to his ankle and dream I got bench for rookie Bailey Zappy. Bill Belichick said he's not sure who his quarterback would be Sunday at MetLife. That Jet win in Denver was costly. Rookie running back Breze Hall towards a c l guard Elija Vera Tucker towards triceps both done for the year.

The Jets coach dropt salis the NFL, uh you know, the sex amount of Michael Carter has proven that he can carry the load, and uh Ti Johnson has done a really nice job and with our offensive line, because offensive line we've been you know, it's been all year with guys shuffling, and just got a lot of faith in the guys that are here to be able to step in and continue to do the job that was done before before them. And the Jets last night made a train to get a running back. They sent a

late round draft pick acquire James Robinson from Jacksonville. That's where the Giants just won their fourth in ROBA. They saw three offensive starters go down knee injuries to guard Ben Bretticent and tackle Evan Neil and I injury. The rookie Titan Daniel Bellinger. None will play this week in Seattle, but all could be back later in the season. At the Garden nixt pet Orlando won fifteen one oh two.

Julius Randall twenty five points. Jalen Brunston had twenty one in r J. Barrett twenty in Memphis thirty seven points for both Kevendurant and Kybrie Irving, but thirty eight for both John Morant and Desmond Baine. And the Grizzlies Methan nets one thirty four one two. The Devil's lost to Washington six to three. Johns Dashwarck Bloomberg Sports, Nathan, thanks john S and p. Futures down nine points down, Futures down,

futures down thirteen points ten. Your treasury is up fifteen thirty seconds yield four point one seven percent Feld on the two year four point four seven percent. UBS shares up nearly five percent in Zurich on the back of strong earnings for the Swiss Bank. Will speak with the CEO Ralph Lalmer's next. This is Bloomberg. Bloomberg Sports is brought to you by Audie. Don't let someone else drive

off in the Audi model. You've always wanted to visit your local price state Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business

Outland at Bloomberg Quick Tape. This is a Bloomberg Business flash and I'm Karen Moscow futures are lower this morning, with SNP futures down ten points down, futures down ninety eight and nasdack futures down fourteen ten year treasury of fourteen thirty seconds, he had four point one eight percent and they yield him a two year four point four

seven per cent. Nim X screwed oil down one point four on a dollar sixteen at eighty three dollars forty two cents a barrel, comic school down four ten percent or seven dollars twenty since at sixteen forty six nine. Announce the euro point in nine eight six four against the dollar, the yen one point eight nine. 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. Rashi Sunac is due to be installed as Britain's third Prime Minister of the year by King Charles the Third. Then his first task is appointing a cabinet that can wrestle with the UK's economic and political crisis. Sunac was selected as leader of the governing Conservative Party after the brief term of Liz trust In St. Louis, a former student broken to Central Visual and Performing Arts

High School, fatally shooting two and wounding six others. The nineteen year old gunman was reportedly killed by police in the NBA the next one and the Nets and Celtics lost in hockey The Capital's Beat the Devil. Six three Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists analysts more than one hundred twenty countries. Michael Barren, this is Bloomberg Anthem. Thanks, It's five nineteen on Wall

Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we now like to bring you an interview with the CEO of UBS, Ralph Hammers. He spoke with Bloomberg's Manus Cranny after the Swiss Bank beat third quarter estimates thanks to higher interest rates. They talked about the results, the outlook for the bank and for the economy. Every time you sit down, it talks like huge volatility, de leveraging and client sentiment. But let's let's trim it

down a bit. Huge volatility, and yet you see pretty substantial inflows on the generating in I'm three generating assets. Where did it come from? And are you surprised? Good morning, menus and and indeed, I think you're heading at the

right point here. So was he volatility? Volatility in the foreign change markets where we profited a lot actually this quarter, which also see that volatility leading to further certainty with our investors, with our clients right on the well side it, and that in certainly is actually it translated into the needs for further guidance, and ninety percent of our clients

are in again we need more guidance. And if they want more guidance, that's why they bring their money to us, and that's why we sort of post to flow so strongly coming into our franchise this quarter, seventeen billions of you fee generating assets globally, seven billion in Asia and six billion in the media and four billion in the US. Clients are in full fear tin hat moded moment. I don't think they're in full fear. These clients there are

also rational. Clearly they're looking at things and they want guidance, but in the end they do stay invested. They're looking for further cash opportunities and further alternative opportunities to invest in as well. So it's all about, you know, how to diversify the portfolio and how to get more exposure to to cash and near cash and increase the yield there.

And that's what we've seen. But there are more on the sidelines and not so much completely withdrawing from the market and the other outlets you do three this number, the seven numbers, and the guidance. Isn't that interest income? It's the banking story of this year and next talk me through the guidance. What will you do in names this year and what's going to drive it into So you actually see quite some pick up on that interest

income dis quarter already. That is on the back of further improvements in the way we manage our clients money from from sweeps to deposits and other alternatives. We saw and I going up fourteen per cent between P and C and g w M and the fourth quarter regarding a continuation of an increase of of n II up

to the two d million. But even beyond that, given the fact that we don't only have expostures to U S dollars with our clients, but we also have large amounts of deposits from clients in Euros and Swiss Franks, we actually expect more website on those currencies next year and on that rate. The debate is this is whether it's peak inflation, peak rates. Where do you sound on the US rates, which has been the alpha of this year,

Where can we get to in dollar rates? Well, we expect that the fat will fertile hike maybe to five five and a quarter and to really fight that inflation um maybe at the cost of a slight recession, if at all, but that you know that danger is there. We think it's okay. On the US side, we do expect for the high ext two too in a quarter, and on the Swiss Frank side we expect photos to one in a quarter. Can I charge you a little

represented in the US it delivers a mild session. Well, I mean, there's always this terminology is it a deep percession model recession? Is it two quarters the three quarters? It doesn't really matter. I think for the U S market, we've always seen that market to dynamics, so the rebound will also be good. The jobs, the job numbers are still good, the household numbers are still good. So know, I do think that further further increases in yields will

not be so detrimental to the economy. Ask you you fee generating assets of a seventeen billion dollars, did you have a credit swite moment? Was there a month to move from credit suite into uvs? Tell the world well, and we were not going into how our competitors developed. And I don't think we need competitors to help us there. From that perspective, we have a global wealth business. Wealth

is what we do. We we have very strong client relationships and clients are just bringing more money to us for the guidance that we can give and also the spread and the certification we can advise on. No signifigance credit suites in flow moment. As I said, you know, this is not for us to go into that. But I think the unaligning trend is really more driven by

clients looking for guidance than anything else. Good Bye back. Sarah, you CFO guided us that a conference recently has lies in need that the botback will be more than five billion. What would it be, Well, it really depends on how to market development and also the liquidity in the market, because there was a limit to what we can do year today. Last Friday we were at four point six. We will continue at the same level of speed, so we should be getting certainly over to five million towards

the five and a half. And that was UBS CEO Ralph Hammers speaking with Bloomberg's Manus Cranny. Stick with us. We'll bring you more of that interview later in the show. You can also watch the full conversation on Bloomberg dot

com and on the Bloomberg terminal. And following the earnings from Ubs, the shares are up more than four percent right now in Zurich, SMP futures are moving lower now down ten points, STOUT futures down, NASTACK futures are down by twelve points ten Your treasury is up fifteen thirty seconds. Yield four point one seven percent. Yield on the two year four point four seven percent. Nim X crew down one PO two right now at eighty three dollars fifty

nine cents of barrel. This is Bloomberg. Bloomberg day Break, brought to you by the New York Community Trust. Your name will live on as a champion of the causes you care about for years to come through a charitable bequest to the New York Community Trust. Learn more at

Philanthropists dot NYC. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg Own sixteen to the Country Sirius XM chent A one nine Tea, and around the globe the Bloomberg Business app 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 is brought to you by se I. Imagine your asset management firms operational infrastructure at a competitive advantage. Let se I show you how at se i c dot com slash I m s. Well, we're just about four hours away from the open of US trading, Let's get you up to date on the news you need to know. At this hour, stocks are coming off two straight days of gains. Steady earnings and

hope for slowing rate hikes help fuel the rally. Robert Stimpson, chief investment officer with Oak Associate Funds, says, recession or not, traders should expect shoppiness ahead. Our recession doesn't matter for stock They simply do not like a slowing economy and that is what we have. So whether it's a mid cycle slowdown or a soft landing or a recession, stocks tend to struggle when the economy is slowing, and that's

the environment we're in. So the last week may have been better, but we do think it's going to be well into next year before stocks get further signals that have sustained advance is really possible. Robert Stimpson with Oak Associate Funds believe stocks have not bought them just yet any time. In Asia, Karen Hong Kong's benchmark Tech index bounced between gains and losses but close up more than

one percent today. It follows a more than seven percent drop yesterday over concerns Chinese President Shijn Ping's third term will bring unfriendly market policies well. She is stacking China's top posts with allies who are less likely to counter restrictive policies Nathan, but White House advisers say they're still working on a meeting between the communist leader and President Biden,

possibly at the G twenty in Bali next month. Over Europe, Karen Rishi Sunaka said to become the UK's third prime minister in his many months. Sunaka said to speak in about an hour, bringing those comments live on Bloomberg Radio and television. Well to earnings now, Nathan, shares of HSBC are down about eight percent in London. That's after the bank reported higher than expected charges for possible loan losses. On the flip side, Karen, shares of UBS are up

more than four percent. The Swiss Bank reported better than expected profit. We spoke with UBS CEO Ralph Hammers about the results plus volatility in foreign exchange to also see that volatility leading to further uncertainty, and that uncertainty is actually translated into the needs for further guidance our clients right an again, we need more guidance and if they want more guidance. That's why they bring their money to us, and that's why we sort of post to flow so

strongly coming into our franchise this quarter. New BS CEO Ralph Hammers spoke with Bloomberg's man its Cranny, saying he sees more clients sitting on the sidelines in the current climate. Back here in the US, Nathan, we have a high profile break up this morning. Bloomberg News has learned Adida's plans to end its partnership with Yea, the man formerly known as Kanye West. Straight ahead, your latest local headlines plus the check of sports. This is Bloomberg. Thank you, karens.

It's five thirty three on Wall Street where it's sixty three degrees in Central Park. We've got a crash on the inbound g w B. Details coming up in traffic. First. Michael Barr with tomorrow what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. It is debate night between New York Democratic Governor Kathy Hokel and Every Republican challenger Lees Elden. The two are expected to debate such topics as crime and the state's

bail reformed laws. Florida governor round the Scantists declined to say whether he'll run for president, as Democratic challenger Charlie Christ accused him of being too distracted by a bid for the White House. In asked for immigrants, Chris accused the Santists and is using public money to fly asylum seekers from Texas to Martha's Vineyard earlier this year. You want to pull political stunts like you did with the taxpayers dollars of the people of Florida. That's not what

it's for. That's not what you should have done. It isn't funny, it's not right, and you were in humane and how you treated these people. In Florida's first and only re election debate, the Santists said chris support for President Joe Biden of the time meant that he should share the blame for the worst inflation in forty years in the US. Fire fuel and natural gas prices up because of the Biden Christ energy policies. They're waging war

on American energy. They are not producing what we need to do, their begging Maduro and OPEC for more oil. The debate was aired on WPEC. A man is in custody in New York City for last week's violent and unprovoked attack on a subway writer. The attack prompted the NYPD to step up its presence at subway stations. The US is making more charges that China's espionage into US

businesses growing. Bloomberg's aid Baxter as the story. The d O j unsealed two more charges claiming Chinese intelligence officers tried to obstruct the criminal investigation of the Huawei Technologies, and FBI Director Christopher Ray says that is basically the tip of the iceberg, and frankly, in thousands of others, we've found the Chinese government threatening established democratic norms and the rule of law as they work to undermine US

economic security and fundamental human rights. Ray says, so far charges against thirteen working for China's intelligence service in San Francisco. I'm at Baxter, Bloomberg Gay Break Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven HUDRED journalists, analysts more than a d twenty countries. I'm Michael bar This is

Bloomberg Naked. Okay, Michael, thank you. Now on Wall Street, It's time for the Bloomberg Sports Updata, and it's brought to you by try stayed OUTI Good morning, John stan Shar, Good morning night. Then the next last season had two players average twenty points a game, Julius Randall r. J. Barrett. Now the Knicks e ated Jalen Brunson at the Garden. Randall scored twenty five, Barrett at it twenty Brunson scored twenty one. Nicks meet the Magic one fifteen to one.

Out to their back home tomorrow for Charlotte and Let's have their two stars. And in Memphis, both Kevin Rann and Kyring Ever being poured in thirty seven points, but the Grizzlies John Morant and Desmond Baine one up them thirty eight apiece. Memphis one on one T four nets Tomorrow visit Milwaukee. Devil's lost to Washington six to three. The Rangers tonight welcome in the Raining Stanley Cup champion

Colorado Avalanche. Week seven wrapped up with a surprisingly easy win by Chicago thirty three to fourteen at New England. Both teams are three and four. The Pats are in last place and they're unsure who their quarterback is. Mac Jones returned from his ankle injury, got benched for rookie Bailey Zaffy. They combined to throw three interceptions that Pats

visit the red Hot Jets on Sunday. The Jets having lost running back Greese Hall, who was having a terrific rookie season too a torn a c l last night, the Jets sent the late round draft pick to Jacksonville to acquire running back Jeans Robinson. Quarterback change in Indianapolis, the veteran Matt Ryan, his first season with the calls bench for Sam Ellinger, has never thrown a pass in

the NFL game. The off season another way for the Yankees, Aaron Boone hopeful it includes a new contract for Aaron, someone that I've grown close with and just admire and respect, and uh, you know, hopefully we'll see him in pinstripes for a long time. I don't he want to think about the alternative right now. Um, but you know, he's he means a lot to a lot of us in that real world series starts Friday's Really Masters in Houston.

John Stashar Bloomberg Sports, Okay, John, thank you. It's seven on Wall Street time now for the Tri State Business Report. Here with that is Bloomberg, Scott, Car, tech and financial service companies led the way in the amount of sub least space in Manhattan during this year's third quarter. That

from a new report from Saville's Manhattan Sublease Overview. Directors at New York Business Journals say there's been more than two million square feet of available sublease space least since the last quarter, a substantial increase since before the pandemic. The State of the r post production house Wife In Studios has opened in Englewood Cliffs. The studio will be serving New Jersey's growing film community as studio network and

independent productions continue flocking to the Garden State. It represents the latest expansion of the female led business founded by award winning producers Molly Connors and Jane sen Esy. Sacks Off Fifth is opening another department store in Connecticut, returning to Stanford with a new store set to open Thursday. It marks the third sacks Off if in the state. They're taking much of the space that was occupied by A Lord and Taylor at Stanford Town Center Mall. That's

the Bloomberg Tri State Business Report. I'm Scott Carr. Thank you, Scott. It's five thirty eight 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 Corneitnaho on ktr H in Houston. Apple has increased prices for its music and TV Plus services for the first time.

I'm Gina Servetti and for w c CEO in Minneapolis, I'm reporting that Medtronic plans to spin off one of its businesses into a new company. I'm Windy to Lett on w I o D in Miami. I'm reporting on the sinking supplies of o J. I'm Stephen Carol and Bloomberg d a B Digital Radio in London. We've been reporting on results from HSBC and UBS beating expectations helped by higher interest rates. I'm Scott Carr on w w J ANDT Froyd. I'm reporting on automakers in motor City

bucking concerns about emissions and climate change. And those are some of the stories our twenty seven hundred Bloomberg journalists and analysts are working on this morning around the world. Back here on Wall Street, we are watching earnings come down the pike. Today we'll hear from Microsoft, end Alphabet, but also a big name in the restaurant industry. Chipotle Mexican Grill is among forty companies in the SMP five hundred reporting their results today. It's get a preview now

from Bloomberg's Charlie Pellett. The analysts surveyed by Bloomberger are looking for adjusted earnings for share of nine dollars twenty three cents on revenue of two point to four billion dollars. Earnings will be watched for signs at higher prices help bolster sales. Analysts say there's also concern about profitability due to stubbornly high commodity and labor inflation and softening demand.

Bloomberg Intelligence analyst Michael Halen says, along with price increases, more in restaurant dining and retention of digital revenue you gain from the pandemic helped third quarter same store sales in New York. Charlie Bloomberg day Break. Okay, Charlie, thank you for watching futures point lower now. It's and p futures down fifteen points. Staff futures down a hundred forty NASDAC features are lower by twenty eight points. You're listening

to Bloomberg day Break. 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 price state Audie dealer to get behind the wheel of yours today, or visit Autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business at and at Bloomberg Quick Tape. This is a Bloomberg Business lash and I'm

Karen Moscow's docks and europ pairing and gains. They're now moving lower. US dock indise futures are falling as investors purses stream of corporate news that had a policy meetings by the European Central Bank and Federal Reserve to check the markets every fifteen minutes throughout the trading day on Bloomberg s and P Future is down sixteen points this morning. Down features down a hundred forty five NASDACK features down

twenty eight. The decks in Germany's down eight tens of percent ten year treasury of fourteen thirty seconds, he'll four point one eight percent. The yield on a two year four point four seven percent. Nine x Screwed oil is down one and a half percent, down a dollar twenty nine at eighty three dollars twenty eight cents, a barrel Comax gold down six tens percent or ten dollars ten

cents at sixteen forty four and ounce. The euro at point nine eight seven zero against the dollar British found one point one three two four and the end is at one forty eight point nine zero. Bitcoin is down six ten percent at nineteen thousand, two hundred seventy dollars. That's a Bloomberg has flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen,

thank you kindly. Rieshi Sunak is due to be installed as Britain's third Prime Minister of the Year by King Charles the Third Tunac, Britain's first prime Minister of color, faces the huge task of trying to shore up an economy sliding toward recession and reeling after his predecessor's experiment in libertarian economics. Six Palestinians were killed in the West Bank, over nine and more than thirty were injured as an Israeli military operation targets a local militia that has carried

out attacks in the NBA. The next one, the Nets and Celtics lost in hockey, The Capital's Beat, The Devil's six three Global News twenty four hours a day on airand on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries. H'm Michael Barr and Nathan Guess what this is Bloomberg, sir, So it is. Thank you, Michael. We're coming up to nine on Wall Street Live from the Bloomberg Interactive Broker Studios.

This is Bloomberg Daybreak and we're joined now by Brian Levitt, global market strategists at Investco. As we take a look at this market this morning. Brian, it's great to speak with you. Seeing futures point a little bit more to losses. But after two straight days of gains for the equity market, what do you see as the path ahead? Well, it's

gonna be a little bit challenging. It's not going to be a straight line here where we're still working through a bottoming process, and it's an economy that's contracting or or at least growing below trend and coming down with policy still tightening. So that's a little bit of a challenge.

But I do remind investors that historically equities tend to do well over the next year when inflation has peaked, and and we believe it has, which suggests that you know, some near term challenge, but uh positive unequities over over the next six or twelve months. Well, you say inflation is peaked, are you thinking that that could mean that we see a pivot from the Fed sooner than markets have been pricing in now. I think they're calling for

seventy basis point moves at each the next two meetings. Here, Well, the market has priced at a terminal FED funds rate and now at five. I mean it's it's been a challenge getting to where that terminal rate would be. First it was three, then four, then four and a half. You know, so the market keeps having a price in additional tightening. I think there's a high probability that five percent um or or close to it is the terminal rate.

I mean, you have core personal consumption expenditure year over year at four nine, So that would be a FED funds above core pc, which which seems about right. And if that's the case, then we start to think about the pause. Um. I don't know if I would necessarily call it, you know, a significant pivot, but a pause. And as the market starts to anticipate that pause, um,

you should see financial conditions begin to ease. I want to get your thoughts on some commentary we heard just this morning from the CEO of JP Morgan, Jamie Diamond. He has been speaking in ri odd. He now says that geopolitical risk is a much bigger concern than recession. Kind of stood out to me, given that Jamie Diamond just a few months ago called recession risk of economic hurricane coming. How do you see the risks playing out in markets as geo politics a bigger concern for you

than recession risk right now? Well, geo politics is always a concern. I I agree that that things seem quite challenging now, although I also remind investors that the markets did quite well in the twentieth century with a couple of world wars and a great depression. So um, you know, I I think what investors need to do with regards to the geopolitical concerns, is is put some hedges in

their portfolio. I mean, look, if there's if there's going to be, um, you know, significant conflict between great economic powers of the world, then um, you know, it's going to be quite challenging environment for investors. But to me, what I my history suggests to me is that investors are better serve paying attention to where they are in the business cycle, what monetary policy is set to do, rather than trying to overly focus on the geopolitical risks.

The geo political risks are going to be with us for for for the rest of our lives, and um, you know, for investors trying to seek their trying to reach their goals, they're gonna have to um stick to an investment plan and and hedge against the geopolitical risks. All right, So our last thirty seconds here, what does hedging look like for you with this kind of geopolitical backdrop. Well, I mean, look what we saw with Russia and Ukraine.

Obviously the hedges were commodities. Um. If there's a bigger conflict between larger powers, I mean, look, that's that's not a larger economic powers. That's it's gonna be a challenge for for the economy, um for global economy, and so look, I mean it's it's gonna be you know, people say get rid of those sixty portfolios or it's not working. I think investors will be happy to be in higher quality bonds, longer duration assets, in that type of in

that type of the world. Thanks as always, Brian, great to get your thoughts. Brian Leavitt, Global market Strategists at Investo with us this morning. Karen Well, Nathan, it is five fifty three on Wall Street. It's time for the Bloomberg Law Report. Let's get to the legal stories. Where are watching this morning from Bloomberg's when Di Gillette the first collective bargaining agreement has been reached in Congress Staffers in the office of Michigan Democratic Representative Andy Levin will

get ten grand more in pay. The gm workers sex bias and retaliation lawsuit is going forward following pre trial rulings by a U. S. District Court judge in Tennessee. Shelley Varner claims two less qualified male engineers got promotions over her, and two firms are leading Atlanta based rose Hill Acquisition Corporation and it's merger with the Chilean fruit distributor called Prize that exports berries, cherries and not to

over thirty countries. 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. Ry Wendy, Thanks now. Another legal story we're watching. Alex Jones has mocked the nearly one billion dollar jury verdict against him for spreading the myth at the deadliest school shooting in US history never happened, and said he would keep the families of the Sandy Hook victims in court for years

to prevent paying the money. Getting the verdict is only the first hurdle in a long legal process for the families, one complicated by the fact that Jones company, Free Speech Systems, has filed for bankruptcy for more of Bloomberg's doing. Grosso speaks to bankruptcy attorney Nicolas Kafroth of Fox Rocks Child So Alex Jones said on his show, do these people actually think they're getting any money? Literally? For hundreds of thousands of dollars that can keep them in court for years?

How often are these huge verdicts collective? Well, I mean it's tough when you have a bankruptcy case intervening him. Particularly here we have a bankrupcy case that was filed kind of strategically before these judgments were entered. When you have a billion dollar judgment, and it's pretty tough to collect on it, And certainly there's a lot of motivation not ox Jones part, to come up with as many maneuverings in court as possible, you know, appropriate or not,

to delay payment on these debts. And these constitutions are certainly kind of part of our strategy to prolong payment and to at least come up with a narrative that Free Speech System doesn't have the money for it. The Sandy Hook families have intervened in the bankruptcy case. They accused Jones of burdening his company, Free Speech Systems, with fifty four million dollars in concocted debt owed to a different company PTPR, owned by Jones and his father. When

will those claims be settled? Well, part of the early litigation of the bankruptcy case was the victim saying, hey, this this debt with p QPR is concocted, and it's it's going to form the basis of an argument that Free Speech Systems isn't going to be able to pay our debts. So the victims raised this issue early on and said to the bankruptcy court, look, you know, they filed their schedules and their financial disclosures. Free Speech Systems

did indicating these debts were legitimate. The only person in charge of confirming whether they're legitimate is Alex Jones and his cronies who are running this business. We don't trust that. Please appoint a committee in this case to look into this. And the court kind of took a middle ground approach. Instead of appointing a committee, the court said, what I'm gonna do is I already have a subcepter five trustee who is a disinterested person, not you know, on the

side of the victims, nonside of the debtor. I'm going to expand the scope of hers and I'm gonna have her investigate whether or not these debts actually all legitimate and so out what we have. The bankruptcy court has kind of pumped the brakes on moving the bankruptcy process forward. So this independent and kind of unusual investigation can take place because the bankruptcy court seriously doubt of the legitimacy of those debts. And that's Nicholas cow for Roth of

Fox roths Child speaking with Bloomberg student Grosso. Catch more of that interview plus analysis of the latest legal news, by subscribing to the Bloomberg Law Podcast or downloading this show at Bloomberg dot com slash podcast. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at the Law Go and still ahead on Bloomberg day Break and check on the business headlines and all the news you need

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