Bloomberg Daybreak: October 25, 2022 - Hour 2 (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, Les Eldon. I'm Michael Barr more ahead of John Stash Howard. Sports than Nicks beat Orlando, than Nets lost in Memphis,

the Bears beat the Patriots in Monday Night Football. That's all Train ahead on Bloomberg day Break on Bloomberg eleven Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius XM one nineteen and around the world on Bloomberg Radio dot Com and The Bloomberg Business Side. And good Morning, I'm Karen Moscow. I'm Nathan Hager. 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 S E I C dot Com slash Tech. Well US futures are lower this morning six o one on Wall Street, and we check the markets every fifteen minutes throughout the trading day on Bloomberg S and P futures down sixteen points down, futures down a hundred forty five and as Dagg features down twenty seven.

The tenure Treasury at fourteen thirty seconds, he had four point one eight percent yield on the two year four point four seven percent nine. Mex screwed oil is down one and a half percent on a dollar twenty five and eighty three dollars thirty three cents in barrel called mex gold down six ten percent or nine dollars ninety cents at sixteen forty four twenty announced and the euro point five against the dollar. Nathan Well Karen stocks are

coming off two straight days of gains. Yesterday saw broad based Drilly, with more than eight percent of stocks in the SNP index closing higher earnings, Optimism and speculation the Fed will slow its pace of interest rate hikes helps fuel the one point two percent gain. Ben Kirby's cohead

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 Managements. Ben Kirby thinks we are nearing the peak for interest rates and Asian Nathan, it was a volatile session following yesterday's historic sell off. A benchmark tech index in Hong Kong bounced between gains and losses and eventually closed up more than one percent today. That indexx plunge more than seven percent yesterday on the prospects of more market and friendly

policies during President She Jun Ping's third term. While President She stacks China's top posts 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

move 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 you. In Europe today, Rishi Sunak is said to become the UK's third Prime minister and as many months and we go to London and get the very latest at Bloomberg's un Podska, morning you, and good morning Karen and Nathan. It's just seven weeks since liszt Trust travel to meet Queen Elizabeth to become Prime Minister. Later today, the UK will have another new leader, former Chancellor Rishi sooner.

We'll 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. I'm you imports in back day, break you and thank you. Let's get back to markets now where it is a busy day for earnings. Shares of HSBC are down more

than seven percent. The bank reported higher than expected charges for possible loan losses in its third quarter. HSBC did join other banks and posting profits that beat estimates, but its low lost provision was almost a third higher than a Bloomberg compiled consensus. On the flip side, shares of UBS are up more than four percent. The Swiss Bank reported better than expected profit in the third quarter as higher interest race helped offset a lower client activity. Be

caught up with UBS CEO Ralph Hummers. Volatility volatinity in the foreign change markets, where we profited a lot actually dis quarter which you also see that volatility leading to further concertainty with our emphasist with our clients right on the well side, and that in certainly is actually it translated into the need for further guidance of 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 Here in the U s 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 twenty 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 divisions. Jeff Inger, Bloomberg Daybreak Right, Jeff Thanks and other corporate News This morning, it looks like Adidas's

cutting ties with Kanye West. We 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 join Gap and Carrying's Balenciaga fashion

label and prematurely cutting ties with West. Lisa Mateo Bloomberg daybreak right, Lisa, thanks, and shares of Adidas are falling on the news of its breakup with Kanye West. Shares are down almost four percent in Frankfurt, and we're watching earnings cross the Bloomberg terminal. Karen from Ups. They've come in with just earnings per share for the third quarter of the beat. The average analyst estimate Right now, the

shares are a little changed in early trading. S and P futures are down thirteen points, STOLE futures down a hundred eighteen, and DAS deck futures are lower by twenty points. Straight ahead your latest local headlines and a check of sports. This is Bloomberg. It sounds six oh seven on Wall Street where sixty three degrees in Central Park got a crash on the l I E eastbound at exit forty two. Details coming up in traffic. First, Michael Bars here with what else is going on in New York and around

the world. Michael, thank you very much. Nathan Man is in custody in New York City for last week's violent and unprovoked attack on a subway writer. Forty one year old lem Crai McCrae, who police say has an extensive criminal history, is now accused of shoving thirty two year old David Martin onto the train tracks at a Brooklyn subway stop last Friday. Martin suffered a broken collar bone. 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 underground from using the subway system. There was a tragic accident in 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. It is debate night between New York Democratic Governor Kathy

Hokel and her Republican challenger, Lee's Elden. The two are expected to debate such topics as crime and the state's bail reform laws. Florida Governor Rhonda Santis and former governor Charlie Cris debated ahead of next month's election. Chris asked the Santis about a possible run for governor in four and asked him to commit to a full term as

governor if he wins. You're running for governor, why don't you look in the eyes of the people of state of Florida and say to them, if you're re elected, you will serve a full four year term as governor. Yes or no. Governor de Santist defended 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. To debate airing on WPEC, character actor Leslie Jordan, who appeared on dozens of TV shows, has died. Jordan, who was four ft eleven, got his big break on the comedy show Murphy Brown. Jordan Azzle played Beverly Leslie on the show Will and Grace. Sharing this, they commus a great

shock to you, but I'm a homo sexual. Leslie Jordan, who died in a car accident, was sixty seven Global News twenty four hours a day on air and on Bloomberg Quickday, powered by more than seven journalists mentalists more than a hundred twenty countries. On Michael bar This is Bloomberg, Nathan, Thanks Michael. Coming up to six ten on Wall Street. Time for the Bloomberg Sports Update. Bright to you by

tri State OUTI with John Senshaw. All right after the Jet seven won four in or Opera aps tunes into the Monday night game to watch the Patriots two of the next Jets three games, or versus New England, who got surprisingly blown out at home by Chicago thirty three to fourty. The Bears score the last twenty three points. They out rushed the pass two forty three to seventy.

They four spoor turnovers. Mac Jones returned from his ankle injury but got bens for rookie Bailey Zappi, and Bill Belichick said he's not sure who his quarterback will be this Sunday at MetLife that Jetwood in Denver was costly. Rookie running back Breese Hall tours a c L guard Elijah Vera Tucker Torres triceps and both are done for

the year. Jets coaches Robert Sala, you don't see the NFL, and uh you know, the sex man, Michael Carter has proven that he can carry the load, and uh Ti Johnson has done a really nice job of 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 might a trade they get a running back. They sent the late round draft pick to acquire James Robinson from Jacksonville. That's where the Giants just won their fourth in a row, but they saw three offensive starters go down knee injuries to guard Ben Brettison and rookie tackle Evin Neil, and i injury the rookie tight end Daniel Bellinger. None will play this week in Seattle, but all could be back later in the season at the Guard next be in Orlando won fifteen one or two.

Julius Randall twenty five points. Jalen Brunson had twenty one in Our Day Better twenty in Memphis, thirty seven points for both Kevin Durant and Kyrie Irving, but thirty eight her both John Morant and Desmond Baine, and the Grizzlies beat the Nets one thirty four one twenty four The Devil's Loft to Washington six three. John Stash Downward, Bloomberg Sports thanks John SMP features down fourteen points, the futures down. That future is lowered by twenty two points. This is Bloomberg.

Bloomberg Sports was brought to you by Audie Don't let someone else drive off and the outie model you've always wanted. Visit your local price 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 Quicktape is a Bloombern Business

Flash and I'm Karen Moscow. This updates brought to you by b n Y Mellen's Perishing Learned Why the world's most sophisticated wealth management and institutional firms rely on Perishing to help them improve profitability, create efficiency, attract talent, and manage risk. At Pershing and dot com, they continue to watch shares a ups. They're up about three tents of a percent this morning after third quarter profit beat analysts estimates. US dot inn X futures, meanwhile, are falling on another

busy day for corporate earnings. S ANDP futures are done about seventeen points and now futures down fifty two. NASDAG futures down in thirty ten year treasury of fifteen thirty seconds. You hald four point one seven percent. They yield on the two year four point four seven percent. Nine x screwed oil is down one and a half percent, down a dollar twenty nine and eighty three dollars twenty seven cents a barrel. The euro point nine six seven against

the dollar. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael Karren, thank you very much. Rishi Sunac is due to be installed as Britain's third Prime Minister of the year by King Charles the Third and then his first task is appointing a cabinet that can wrestle with the UK's economic and political prices. Sunach was elected as leader of the governing Conservative Party after the brief term of

Liz Trusts. 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 air and on Bloomberg Quicktake powered by more than twenty seven hundred journalist and analysts in more than one twenty countries.

Michael Barr and this is Bloomberg. Michael. Thanks six nineteen now on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We want to bring you back down to our interview with the CEO of UBS, Ralph Hammers. He spoke with Bloomberg's Mannis Cranny after the Swiss bank beat the third quarter earnings estimates. Along with talking about the results, they discussed the outlook for US rates, why UBS is committed to the UK and investing in China.

One of the things that you hung a hat on and we chatted about it was your wealth from DAL that deal has not gone away, comps, whatever word we choose. What the market wants to know was do you pull the plug on that? The German pull a blog on that? Where did they deal have fractures? Well, I think it changing tactics is absolutely not a change in strategy and I think that's the the important message for our plans if it comes to US growth in the US market.

Neua's market. We're as you know, we are heavily invested. It's a it's a very uh important part of our strategy to grow there in the three different segments and personas that we that we see the core segment is personally advised, that's where we do most of our business. We need to support our essays with further digital support the way the workstations work, the banking products. As you know, we we also launched further improvement of banking products there

and you see that coming through also this quarter. Then on the more family Officer site, more bespoke solutions. And then where we will where we're also looking at is the kind of the local wealth banners we would call it, where we also have too many of workplace wealth clients and see how we can improve the digital experience there where we mode advice. But us CEO, are you still behind this strategy that you that you want to do a deal to take yourself up and over in that

space in the United States of America? Is not still coolly your belief I want to do the deal. I want to grow that portion of the business that I went after at the start of the year. Well, the

strategy was never to do a deal. The strategy was always to grow organically and the opportunities that you can look at in terms of accelerating your organic plans, whether it is getting more technology and board like like what this transaction was about, or getting more exposure to specific clientele, which you know you could see also for for for future deals. But it's not like we're looking and on the hunt for deals. We are really focused on our

organic growth strategy. In the US, we talked about volatility. There has been huge volatility in China. The stories that we're writing is that She's wrapped the power, causes foreigners to flee. Has there been a material ship by your lines, the leveraging, I know is part of the story in Asia.

Were talking to me about China in terms of your biggest fear around this granted by she Clearly Asia and China have some kind of connection there right So from that perspective, indeed, part of the leveraging is to be explained by how the markets in Asia have performed. Having said that, you know, man As we have been investing in China for decades and we are d goo to bank on the investing banking side for China and our clients rely on that. And even this quarter we saw

good business. We were involved and three out of the four ib os in Hong Kong, the largest IBO in Hong Kong as well, so equity capital marks were back number one in the region, also the China connected business.

And now on the on the other side, with the confirmation of she to take another term, clearly we have to look at, you know, whether some of his policies that he already kind of issued or ast year, whether they will continue, like the Common Prosperity Policy, which is an important one in order to have a more equal

divideed wealth across the different UH classes. And that does provide us for an opportunity to develop for the asset management and wealth management services at a capital in a capital right way in London is a sort of a different setting for both of us to do the set of numbers. Chaos in politics, chayous in currency, chaos in the UK, by the way, chaos. Are you committed to the UK? We are committed to the UK. We're today here in the UK. We have a large office here

in the UK. We run our investment banking activities from

the UK. London is still a big talent pool for the financial world, so that's important as well, uh, and I do think that with you know, the new Prime minister coming on board, that that this will be starting point for more predictability, more consistency, with that more stability, what does it take to get global investors confidence ah in Britain exactly, it is more predictability and more cosistency and with that more stability, making sure that you find

the right bounce between fiscal stimulas uh, gapping energy prices and your your center bank uh trying to find inflation. I think that should all be in sync and I think that's what the market is looking for. That's UBS CEO Ralph Hammers speaking with Bloomberg's Menace Cranny. You catch the full conversation on Bloomberg dot com and on the Bloomberg terminal. UBS shares right now are up four and a half percent in Zurich watching earnings from General Electric

across the Bloomberg terminal. Third quarter adjusted earnings per share came out much lower than analysts estimates, and the company is also lowering its outlook for the year. GE shares are now are down seven point three percent in the pre market. SMP futures are down sixteen points down. Futures down a hundred forty five and Nastack futures are lower by twenty four points. Ten. Your treasury is up sixt can sealed four point. This is Bloomberg, Bloomberg eleven three

oh weather mostly cloudy, patchy, drizzle and fog. Chance for a shower this afternoon with a high in year seventy degrees. A few more showers possible Tomorrow, high near seventy sunshine thursdayvid cooler hies in the upper sixties right now sixty

three degrees. Broadcasting live from the Bloomberg Interactive Broker Studio in New York, Bloomberg Living for you to Washington, d C. Bloomberg, to Boston, Bloomberg one O six one to San Francisco Bloomberg, and I'm sixteen to the country, Sirius XM to the one nineteen and around the globe the Bloomberg Business apt and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow, and we're just about three hours

away from the open of US trading. Time for the five things that you need to notice dark your day. Brought to you by Interactive Brokers. Ib k Our Investment Advisors switched to Interactive Brokers for lowest cost global trading and turnkey custody solutions, no ticket charges and no conflicts of your interests at ibkr dot com. Slash r i a a first Futures are lower following 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 choppiness ahead. Our recession doesn't matter for stocks. 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 bottom just yet over europe Care and she Sunak is said to become the UK's third prime minister in as many months. Sunak Is said to speak in just a couple of minutes. Stick with us. We will bring you those comments live right here on Bloomberg Radio

and on Bloomberg Television. But the earnings now, Nathan, Shares of HSBC are down more than seven percent in London. That's after the bank reported higher than expected charges for possible loan losses. On the flip side, Sharon, we're watching, Karen, sorry about that. Shairs of UBS are up nearly five percent.

The Swiss Bank reported better than expected profit. We spoke with UBS CEO Ralph Hammers about the results, plus about volatility and foreign exchange to also see that volatility leading to further uncertainty, and that uncertainty is actually translated into the need for further guidance. So nine of our clients right 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. UBS CEO Ralph Hammers spoke with Bloomberg's Manus Cranny. He says he sees more clients sitting on the sidelines in the current climate, and Nathan mack here in the U s G shares are now down more than three percent. Earnings missed analysts estimates, and the company cut its full year forecast. Finally, Karen, we have a high profile break up this morning. Adidas plans to end its partnership with Ya, the man formerly

known as Kanye West. Move follows a rash of offensive behavior that includes anti Semitic social media posts. And that's the five things you need to notice start your day. Brought to you by Interactive Brokers Well Futures they're following this morning. S and P futures down fourteen points down, futures down one thirty five and NASDAG futures are down nineteen.

The decks in Germany is down eight tents of upper set, CAC in Paris up three tents of upper cent, and the foot SEE one hundred down six tenths of upper cent. The n K to twenty five in Japan gained one percent. In the Hank Sang in Hong Kong down a tenth of upper set. Ten year Treasury up sixteen thirty seconds, held four point one seven percent yield on the two year four point four six percent. Nine x screwed oils falling down one point three percent on a dollar seven

at eighty three dollars fifty one cents. A barrel comic school is down seven tenths percent or ten dollars eighty cents at sixteen forty three forty announce the euro point nine six four against the dollar British found one point one three two nine and the end at one forty eight point nine three. Look at a bitcoin this morning, it's down half percent. It's in nineteen thousand, two hundred eighty dollars. Nathan, Okay, Karen, thank you. It is now

six thirty four on Wall Street. As we await the first remarks from Rieschi Sunac as the newest Prime Minister of the United Kingdom, Let's bring in Michael Barr for a look at what else is going on around the world this morning. Good morning, Michael, Good morning, Nathan. As you mentioned, Riese Sunac will give his first speech as UK Prime Minister in a few minutes. The person he replaced, Liz Trusts, only last at forty four days in office today. Trust said it was an honor to serve as Prime

Minister and wish Sunac well. I'll country continues to battle through your storm. But I believe in Britain. I believe in the British people, and I know that brighter days LA had trust as Ston as Prime Minister was the shortest in UK history. Florida Governor Rondo 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 Allison four. And as for immigrants, Chris accused of Santists of misusing 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's support for President Joe Biden of the time meant that he should share are the blame, but the worst inflation in forty years in the US by are 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. It is debate Night in New York between Democratic Governor Kathy Hokele and a Republican challenger, Lezelden. The two are expected to debate such topics as crime and the states bail reform laws. 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 business is growing Bloomberg's Boxer as

a 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. Today, a Russian court started hearing American basketball star Britney Grinder's appeal against their nine year prison sentence for a drug possession.

Grinder and eight time All Star center for the w NBA's Phoenix Mercury and a two time Olympic gold medalist, was arrested in February and was convicted in August after police said they found vape canisters containing cannabis soil in her luggage at Moscow's airport. In the NBA. The next one, the Nets and Celtics lost in hockey. The Capitals beat the Devil six three Monday Night football, the Patriots lost

to the Chicago Bears. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenties seven hundred journalists and analysts more than twenty countries. Michael Barr and this is Bloomberg nath Okay, Michael, thank you. It is now six thirty seven on Wall Street. Let's take a look at stock some of the names moving in the pre market while we await uh new Prime Minister of the UK, Rieshi Suonak. We can see

the podium set up outside number ten Downing Street. He's due to make his first remarks as the latest Prime Minister of the UK in just a few minutes. But ahead of that, we're joined now by Bloomberg Radio and TV Markets correspondent Credy Gupta on another very busy warning morning for general earnings. Creat Yeah, well, speaking of general, we'll start with General Motors here. GM is your taker. They just came out with some earnings. Now, the shares

did pop about three percent pre market. Looks like they paired some of that game down to about eight tenths of one percent, but still positive post earning story. Now this is significant. They are beating on the top line, but a narrow, narrow by narrow margin. I should say those share is um U S E P S. I just say up two dollars and twenty five cents. I don't know what's going on this morning. The estimate there

is a dollar and eighty nine cents. Uh. What's interesting to me that was they also said that they cleared out about seventy five of their second quarter inventory. They're also talking about ramping up some of that EV production as soon as November seventeenth. We know that has been a major motive for GM and some of the other car makers to get on the e V production far more quickly so that they are not um basically squeeze

out of the market completely. And we also know that some of the supply chain issues have been making that very very challenging. Nevertheless, at this moment, looks like General Motors their net sales and revenue coming in just about in line with estimates. I wouldn't call it a major beat, but the EPs is really where the stock is shining just a little bit, Nathan. So General Motors GM up about one point three percent. Okay, so that's one general company.

Let's talk about the other one, General Electric. General Electric. The opposite story for General Electric her tees your taker down three point three percent in the pre market. Now, this is important because they had a profit miss, but a revenue and free cash flow beat. So what the issue is, once again, operating margin. You aren't seeing that kind of turnover that you are perhaps seeing in General Motors. Nevertheless, that's what's weighing on the shares this morning, So General

Electric ge down three point three percent. But Nathan is not just those companies you have to keep an eye on. Remember yesterday when we were talking about China, those massive moves lower for those A d R s, Well, today a little bit of a turnaround story. Um Ali Baba is our poster child for that b A b A is the taker up one and a half percent in the pre market. You're also looking at the likes of j D for example, which is also up in the pre market institute of two point eight percent. But put

this into context. Remember yesterday we had moves of somewhere between twelve to seventy in some of these A d R. So a lot of this is really just a technical bounce as opposed to a fundamental shift in the narrative. And I think that's an important to takeaway. Yeah, it's certainly going to be a region to watch as we try to sort out what exactly the changes that are coming with Chinese President shi Jin Pain getting that third

term and consolidating power there. But let's let's turn back to earnings, because we've got a lot to get through in terms of what's been reported what's going to be reported? Well, absolutely, let's start off with another company, which I think maybe you might appreciate. You a grill man. Nathan can be can't be in the right weather fair enough. I can't cook to save my life at a fifty percent burn rate on an omelet. But Weber is a company A lot of people are watching on this, of course, the

maker of grills. Um. I was told there's a green age certainly, you know, working alongside Jeremy Hunt potentially his chancellor. What's the difficulty for rieshie soon act to bring his party together given that you know he's been through a

leadership contest before and has been rejected at least once before. Well, that's the thing, and he is untested in the in the true public space, because like this Trust, he has come to power without any sort of broader public mandate, I mean least Trust at least had the endorsement of the of the Tory Party membership. Seen that doesn't even have that. So the question is what on what basis can he govern and say that he's representing the British

people um. And that could be a challenge for him because there is a question of easy really acting with a mandate. Of course, the Tories can't afford to go to an election anytime soon because they're dragging very badly in the polls, and the idea would simply be to get on until the next election is due in a couple of years and sort of stem the bleeding in

the meantime. So he's got that challenge. But also given the extent of the divisions we've seen in public display and the Tory Party and its basically coalisions within one party and factions within one party, it's going to be a real challenge to keep a lid on that. Um. He might want to look, of course through the experience of Australia in that regard, because Australia cycled through a lot of leaders in the two thousand's and that didn't

really end very well. So perhaps there'll be a motivation to really kind of try and cut it. Here at this point, and we're watching the motorcade live on Blimber Television as Richie Sunac makes his way to Number ten Downing Street. Following that meeting with King Charles the Third formally asked to form uh just the latest government in the UK. So with that motorcade making its way to number ten. We should be getting those comments from Prime Minister Sunac h in just the next couple of minutes.

Here in the meantime, Rosalin mathieson Bloomberg News, Senior executive editor for International Government. What's the challenge for Sunac just to form a government. I mean, we've had a couple of former Prime Minister Lease Trustes, Cabinet ministers have to resign with various scandals. Uh, we had former Prime Minister Boris Johnson very briefly put himself up for leadership before

backing off a couple of days later. But I mean there's a lot of fractiousness just within Conservative members themselves. Whether uh Prime Minister Sunac might have a talent pool to to go to draw on to form a government, well, that's right. And equally he needs to sort of bring a mixture to cabinet potentially of not just those who supported him in his leadership efforts um both with Liz trust and now, but those who perhaps worked against him.

Because if you're truly trying to bring unity back to the party, then that has to include in the tent those who perhaps have had posed him or who stood against him even and so it will be interesting to see how he manages that mix because he does need to have allies and also potentially enemies working with him, as you say, to have that talent pool, and also to stop them potentially working against him. So that's going to be the interesting thing to see in the lineup.

M And it looks like Richie sinak Is is pulling up now, so we may hear from him imminently on what that lineup is going to look like now while we wait for those comments rise in the few seconds perhaps that we have left here. What are some of the main points are going to be listening for from a prime minister soon? Acts? Comments? What are some of the unanswered questions that still need to be answered? Up,

we're taking you now to prime ministers soon. Acc he's just begun his remarks now from number ten Downing Street. Let's bring you over to number ten and Prime Minister Rishi Sunac and accepted his Majesty the King's invitation to form a government in his name. It is only right to explain why I'm standing here as your new Prime minister right now. Our country is facing a profound economic crisis.

The aftermath of COVID still lingers. Putin's war in Ukraine has destabilized energy markets and supply chains the world over. I want to pay tribute to my predecessor, Liz Trust. She was not wrong to want to improve growth in this country. It is a noble aim, yeah, and I admired her restlessness to create change. But some mistakes were made, not born of ill will or bad intentions, quite the

opposite in fact, but mistakes nonetheless. And I have been elected as leader of my party and your Prime Minister in part to fix them, and that work begins immediately. I will place economic stability and confidence at the heart of this government's agenda. This will mean difficult decisions to come, but you saw me during COVID doing everything I could to protect people and businesses with schemes like furlough. There are always limits, more so now than ever that I

promise you this. I will bring that same compassion to the challenges we face today. The government I lead will not leave the next generation your children and grandchildren were they debt to settle that we were too weak to pay ourselves. I will unite our country not with words, but with action. I will work day in and day out to deliver for you. This government will have integrity, professionalism, an accountability at every level. Trust is earned, and I

will earn yours. I will always be grateful to Boris Johnson for his incredible achievements as Prime Minister, and I treasure his warmth and generosity of spirit. And I know he would agree that the mandate my party earned in is not the sole property of any one individual. It is a mandate that belonged to and unites all of us.

And the heart of that mandate is our Manifesto. I will deliver on its promise a stronger NHS, better schools, safer streets, control of our borders, protecting our environment, supporting our armed forces, leveling up and building an economy that embraces the opportunities of Brexit, where businesses invest, innovate and

create jobs. I understand how difficult this moment is. After the billions of pounds it cost us to combat COVID, after all the dislocation that caused in the midst of a terrible war that must be seen successfully to its conclusions. I fully appreciate how hard things are, and I understand two that I have work to do to restore trust. After all that has happened, all I can say is that I am not daunted. I know the high office I have accepted, and I hope to live up to

its demands. But when the opportunity to serve comes along, you cannot question the moment, only your willingness. So I stand here before you, ready to lead our country into the future, to put your needs above politics, to reach out and build a government that represents the very best traditions of my party. Together we can achieve incredible things. We will create a future worthy of the sacrifices so

many have made. And Phil tomorrow and every day thereafter with hope that Keen Richard soon actually British Prime Minister. There the message pretty simple, difficult decisions to come for the UK economy. Mistakes have been made. I'm here to fix them. From New York City for our audience worldwide

on TV and radio. This is Bloomberg Surveymance with Tom Keane and Lisa Rabbad, Sam Jonathan Pharaoh t K pretty blunted to the point their tough decisions to come carefully worded, I thought, you know, moving from the past to the

very recent present. Twitter lit up as some of these phrases were mentioned, but I do think John, for many people, this is the first time they've heard the Prime minister speak working to restore trust la soa quote after all that has happened, trying to ride on some of the good will that he built over the COVID era and how much they did extend some of the aid two

individuals and including the furlough program. How far does that get this administration at a time of potential austerity, in the face of higher heating bills and just all in higher costs. Didn't use the word AUSTERI say, but it's there in the message, isn't it. We will not leave it to the next generation with debt to settle. Ultimately, Lisa, they're going to go hard and this is the difficult thing.

How do you affect an economy in an optimism at a time when that's going to mean some serious declines in the economic output of this nation. Some people talking about this is the world's sixth biggest economy for now, we have heard that from economists, So how do they do you project a feeling of strength into the future. Lizzie Burden outside number ten down the street, let's head over to Lizzie. Now, Lizzie, you followed that addressed by

the British Prime Minister. Went on for several minutes or so, talk to us about the reaction in the UK so far. Well, the reaction behind the black door was Row supplause. Uh it really Richard Sudak was trying to push hard on the reset button. There he did paid tribute to Boris Johnson and Liz