Bloomberg Daybreak: October 26, 2022 - Hour 1 (Radio)

continue in Europe as Deutsche Bank and Bark Laserport. He was a big debate night in New York and several other states, plus President Biden discussed Ukraine and China in a congratulatory call to the UK Prime Minister Michael bar More Ahead, I'm down stattoward sports. The Rangers offer that shoot out to Colorado Devils one in Detroit and Nixon nets of games tonight. That's all train ahead on Bloomberg

day Break on Bloomberg. He Living Free on New York, Bloomberg 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 Old on Bloomberg Radio Dot Carmen The Bloomberg Business. Good Morning, I'm Nathan Hagar, and I'm Karen Moscow in US. Dock Index futures are lower this morning. Work coming up to five on one on Wall Street, and we check the markets every fifteen minutes

throughout the trading day on Bloomberg. Right now, S and P futures down nineteen points and NASDAC futures are falling down one fifty six. That's down one and a third percent. DAL futures that'll change this morning. Ten year Treasury up fourteen thirty seconds, yield four point oh four percent, and they yield on the two year four point four two percent. Nathan Karen. The big drop of NASTAC futures this morning follows disappointing earnings and forecasts from two tech giants. We

begin with Microsoft. Those shares are down five and two thirds per cent ed. Ludlow has more on the results from our Bloomberg nine sixty newsroom in San Francisco. Microsoft did beat on both the top and bottom line, but recorded its slowest sales growth in five years. The strongest dollars certainly was a factor, along with material slowdown it

seems in both corporate and consumer spending. What really spook the market was commentary on the Earning School that the Asia Cloud unit would see its growth decelerate to the tune of five percentage points quarter on quarter going into the final three months of this year. The most significant reaction in after hours trading coming at that point at Lovelow for Blomberg News in San Francisco. All right and thank you well. Shares of Alphabet meantime or down more

than six percent in early trading. The owner of Google reported earnings and revenue that both missed expectations. Bloomberg Intelligence Senior analyst man Deep Singh has more in the miss. The reason why you see a ten percentage point miss when it comes to operating income is because search underperformed.

Every time search underperformance, Google has a bad quarter. And in this case you have to ask you yourself, is it temporary, is it what Snap was seeing around a pricing or is it more structural because you know there's a lot more competition from Amazon, from Walmart, from Target. These companies are all add numbers now. Bloomberg Intelligence Senior analyst Mandeep Singh says Google is now planning to slow hiring and control expenses, and there are plenty of other

earnings to catch you up. On Karen. Shares of Texas Instruments are down more than four percent. The chip makers quarterly forecast missed estimates, signaling the semiconductor slump is spreading beyond computing in phones. Shares of Visa Meantime are up more than one percent. The Digital Payments company reported profit and revenue that beat estimates, and Chipotle shares are little changed. Comparable sales and profit at Chipotle outpaced Wall Street expectations.

Well tech earnings continue today, Nathan, with both Meta Platforms and Twitter reporting meantime. Elon Musk's acquisition of Twitter is in focus. He's pledging to close the deal by this Friday, and we get more from Bloomberg's Doug Christener. The comments were made yesterday in the video conference call with bankers helping to fund the deal. They are providing thirteen billion dollars of debt financing. We are told Musk also promised to help the banks market the debt to money managers

after the deal closes. Several banks have been left in a lurch after Musk's sudden reversal on going through with buying Twitter and early October, and now they're facing paper losses of roughly five hundred million dollars on the transaction. The pain would be realized once the debt is sold to institutional investors. In New York, I'm Doug Chrisener Bloomberg Daybreak Doug Banks. While tech stocks are falling this morning, the U S stock market may still not have hit

a bottom. That's according to Golden and Sachs. Strategists at the firm say equities don't fully reflect the latest rise in really yields and the odds of a recession in a severe economic downturn. Goldman's team says it expects the SMP five hundred to drop below That would be a

twenty five percent fall from yesterday's close. Well, in Europe this morning, Nathan Banks are in focus once again as there's an earning season rolls on and we go live to London and get the very latest with Bloomberg's un Paul. It's good morning you in Good morning, count and Nathan. A big morning for European bankcountings and beating estimate as interest rates rise is the key theme. Italy's Uni credit has raised fully revenue and profit targets for a second

straight quarter. Deutsche Bank sales and profits also beating, but analysts did flag higher than expected costs at Germany's biggest lender, and traders at London based Barclay's beating estimates are setting steep declines at the investment bank, with the economy keeping deals on the sidelines in London. I'm you in pots Plin, big day break, are you and thank you? Back here in the US, the focus on politics is ramping up.

With less than two weeks till the mid term elections, the candidates for New York governor squared off last night. Bloomberg's Michael Barr joins US Live from New York with the highlights. Michael, thank you very much. Nathan. Crime and abortion took center stage last night as New York Governor Kathy HOCl facer Republican challenger Republican Representative Lee Selden in the campaign's only televised gubernatorial debate on Spectrum News New

York One. Both candidates were asked to look ahead to the race for the White House in four Do you want to see Joe Biden run for re election? Yes? I do. Do you want to see Donald Trump run for president? In Lee's eldn not even thinking about it. I'm focused on fourteen days from today, VOCAL slams Elden's

past support for abortion restrictions and former President Trump. Zelden criticized hocal's push to send millions to abortion providers to expand access for predicted surgeon out of state patients live in New York. Michael Barr Bloomberg Daybreak, Karen, alright, Michael, thank you well. Inflation is proving a key in the midterm elections orring. Housing costs are a big part of that, and in the country's biggest cities, renters are still feeling

the pinch. New York City has the most expensive rental market in the country. According to the rental listing company zumber, the median one bedroom apartment runs for more than thirty eight hundred dollars a month. Boston has the second highest rent in the country. I closed to thirty one hundred dollars in San Francisco's close spied at roughly three thousand. Well, Karen, you've heard about the great resignation following COVID. Now the next swave of workers leaving their jobs could be driven

by abortion rights. According to a survey by the nonprofit Catalyst, of employees are thinking of quitting because of their company's response to the Supreme Court's decision to overturn Roe v. Wade say their employer isn't doing enough to protect abortion rights. You're listening to Bloomberg Daybreak and it's now five oh seven on Wall Street. We've got the emergency road work this morning. It's got Root thirty six closed in keyboard

and it is sixty four degrees in Central Park. Michael Barr is back with us from more on what's going on in New York and around the world this morning. Michael, thank you very much. Nathan. On top of New York, it was debate night and several other closely watched races. Pennsylvania Democrat John Federman debated against Republican doctor Memnaz as

they vie for a critical Senate seat. In the opening minutes of last night's debate, Federman addressed what he called the elephant in the room, the stroke he suffered five months ago. I have run a campaign, and I've been very transparent about being very open about the fact we're in used captioning. And I believe that again, my doctors, the real doctors that I believe, they all believe that

I'm ready to be served. Ohs ignored his opponent's health challenges, instead seizing on Fetterman's policies on immigration and crime and his support for President Joe Biden. On immigration and crossings at the southern U. S. Border, Dr Oz said it's an issue that's personal to him. My father was an immigrant,

my mother were immigrants. You know, I understand what legal immigration offers us, but the completely porous, open nature of our border, which John Fetterman supports, has created a humanitarian crisis. The debate was held on News Nation. Meanwhile, the gubernatorial debate was held last night. In Michigan. Governor Gretchen Whitmer declared her position on abortion, saying she will be voting

yes on a ballot initiative to protect abortion rights. The simple truth is the way to protect women and ensure that future generations have the same rights we've had for forty nine years is by a adopting Proposal three, and I will be a yes vote. Whitmer's Republican opponent, Tudor Dixon, argued that Michigan's Proposal three is nothing like the Roe v. Wade Supreme Court decision that stood for nearly fifty years when Governor Whitmer tells you that this is going to

be ROW. It's not even close to ROW. It's not codifying ROW in our constitution, but it would be the most radical abortion law in the entire country. The only place that has something similar or China in North Korea. The debate was aired on w x y z t V. New York City has been ordered to reinstate a group of sanitation workers fired for refusing to get a COVID nineteen vaccine after a state court judge ruled the mandate

was unlawful. The White House, as President Joe Biden, congratulated the new UK Prime Minister Rishi Sunac in a call in which they discussed the Russian invasion of Ukraine and challenges arising from China. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalist and analysts more than a hundred twenty countries. Michael Barren, this is Bloomberg, Nathan all right,

thanks again, Michael. Caught up to five ten on Mall Street time for the Bloomberg Sports out Day, brought to you by Tri State OUTI. Good morning, John Stan shower day morning. Nathan good En at the Garden was Family Cup champion Colorado in to start a three game tour of the New York teams nineties shots on goal in the game Adam Fox score was six minutes left to tie the score. In the shootout, Ads scored in the fourth round. They beat the Rangers three to two. The

Colorado goalie was Alexander Georgia beat his old team. The Ads visit the Devil's Friday. The Devil's just won six two in Detroit. They won four the last five the Avs and then visit the Islanders on Saturday. The Rangers visit the Islanders tonight. Nicks are at the Garden tonight to play Charlotte, and the Nets visit Milwaukee. Two of the best in the West met last night Phoenix the Golden State by nine. Jet say Elijah Moore will play

Sunday against New England. The second year receiver, upset with lack of playing time, demanded a trade, didn't play last Sunday. The trade deadline is next Tuesday. The jetter five and two the Ran six and one. Daniel Jones comes off a one hundred yard rushing game for coach Bryant Aaballs, John Stashwar the Giant Sunday visits Seattle and the Seahawks also a surprise team, sole possession of first in the NFC West quarterback by Geno Smith, the ex Jet and Giant.

Forty two year old Skip Schumacher named new manager of the Miami Marlins, replacing Don Mattie When, who had the job for seven years. Schumacher most recently a coach in St. Louis. Luis Roast, the x met manager, current Yankee third base coach, was a candidate for the Marlins managerial job. Ryan Cashman has been the Yankee Joe manager since his contract is expiring. S n Y reporting he will be offered a new deal. Sports Nathan, Yes, you are sp Futures down twenty three

points right now. Death Future is down two points. Nastac Futures leading the declines for sure this morning down a hundred seventy six points, a drop of one and a half percent. On disappointing earnings from Microsoft, Alphabet and Texas Instruments. Bloomberg quick takes Alex Web joins us next. This is Bloomberg and 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 Tri state Audie dealer to get behind the wheel of yours today, or visit Audie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quick Take, He's a Bloomberg Business Flash and I'm kared. Moscow US Stock Index Future is following this morning as Megacap technology

shares slump in early trading Nownsday futures. They're leading the declines, down one point six percent after disappointing quarterly updates from Microsoft, Google, parent Alphabet and Texas Instruments. And we check the markets every fifteen minutes throughout the trading day on Bloomberg so

nowsday futures, they're down a hundred eighty three points. S and P futures down twenty four deal futures that will change the decks In Germany's up four tenths of upper sent ten year treasury up eleven thirty seconds YELD four

point oh five percent. They yield on the two year four point four three percent Nimex screwed oil is up half percent or forty two cents at eighty five dollars seventy four cents of barrel comic school that one point two percent or nineteen dollars at sixteen seventy seven ten an ounce. The euro is at one point zero zero three one against the dollar, British pound one point one five nine six and again one forty six point nine six. And as a Bloomberg Business Flash, now here's Michael Barr

with more on what's going on around the world. Michael, good morning, Good morning, Karen. Pennsylvania Democrat John Federman debated against Republican doctor Mementaz as they vie for a critical Senate seat. Federman, who suffered a stroke and may spoke about abortion. If you believe that the choice of your reproductive freedom belongs with Dr Oz, then you have a choice. But if you believe that the choice for abortion belongs between you and your doctor, that's what I fight for.

Ah said that he is against federal involvement in a women's decision, but he supports what the states decide. I want women doctors, local political leaders, letting the democracy that's always allowed our nation to thrive to put the best ideas forward so states can decide for themselves. Meanwhile, gubernatorial debates were held in New York and Michigan. In the NBA, the Wizards won, the Warriors lost. In the NHL, the

Rangers lost the Devil's One along with the Bruins. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than seven hundred journalist and analysts in more than a hundred twenty countries. On Michael Barn This is Bloomberg. Nathan, Okay, Michael. Thanks, It's five nineteen on Wall Street. Live from the Bloomberg Interactive Brokers studios. This is Bloomberg Daybreak, and tech stocks are

losing this morning as we kickoff tech earning season. Microsoft and Google parent Alphabet are leading the way with results that missed estimates. Texas Instruments did too. Let's dig into these numbers now. Bloomberg Quick Take correspondent Alex Webb is with us this morning. Alex morning, Is this the sign of the economic storm that so many had been warning about? In these results? Yes, I think storm is quite right because it's actually sort of slightly different factors affecting Um,

the different strands of the tech industry. You know, we've got Microsoft, which has been affected by the slight slowing in cloud spending. We've got Google that's being affected by the reduced marketing budgets. And we've got Texas Instruments who have been impacted by firstly the huge expansion in the semiconductor capacity compounded by slowing down in consumer spending. So

all those things playing together to create a pretty ugly picture. Yeah, well, let's go through these one by one, starting off with Microsoft warning about the impact not just for the strong dollar, but azure cloud demand does not seem to be where it was during the pandemic. I guess that's to be expected to some extent, But are these asure results a bit of a surprise that the disappointment we saw here? I mean, the expectations were already had already been tempered

quite a lot. The fact that it came even below those was clearly something the market was not to really appreciative of. The Yes, you're quite right that essentially the lockdow will happen with the lockdowns that perhaps brought forward a lot of the cloud demand, accelerated the cloud demand, which means that actually people who might have been or companies that might have been likely to adopt it sort

of now have already done, so she caveat it. Of course, they're saying it is still a business that is growing at a fairly heptic pace. The the forward looking comment was that growth would be five percentage points lower than in the previous quarter. That imply is still thirty seven percent growth, which you know, most companies would be delighted at. But expectations for this business have been pretty high, and when it comes to Alphabet's results, very interesting and disappointing

as well to investors. That we're starting to see that even Google's business, which had been somewhat insulated from the the ads spending head winds for some of its other competitors, is starting to get hit here as well. Yeah, Google really is the big beast when it comes to advertising technology.

It's it's really gained ground over Facebook, you know, because if you're navigating the Internet, you kind of need to use Google Search, and that means that if you're therefore in the business of selling things, you need to be in Google Search too. Now a lot of their customers are in fact small and medium sized enterprises and and these guys are finding perhaps that consumer spending is has

slowed down. Therefore they start cutting their own budgets, and marketing tends to be the first thing that falls victim to that. Um we had seen plenty of other smaller ad tech players from Snap and and and beyond to feel the impact of that. The fact that it is now affecting Google is significant and shows that they are not immune. And now for Texas Instruments to see that

the chips story, it's not just the digital chips. So we focus so much on with you know, Taiwan Semiconductor, Samsung, are that, some of those other companies, but these analog chips as well are getting hit by a demand problems. Yes, and Texas Instruments has a huge, huge, long customer lists stretching from you know, not just consumer kids, but through to automotive and industrials. And of course people at the moment are not buying as many cars as perhaps they

might otherwise have done. And the real comment that was interesting was to slow down industrial spending. So industrial customers clearly tightening their purse strings a little bit. That t I feeling that And and on the sort of supply side because of the trip constraints that were felt during the lockdowns, there was an acceleration of investment in additional capacity. So now you've got a tightening of demand an acceleration of supply, and which clearly is not an ideal situation

if in those park markets. So in our last thirty seconds here, Alex, what does this tell us about what we could expect from some of the other big names that are going to be reporting later on this week, particularly Meta platforms coming up later this afternoon. I think perhaps that expectations for Meta are going to be, given the context we've we've seen in the past few days,

pretty low. Perhaps that might mean actually it's uh, it's it'll be easy to surprise that any glimmer of hope will be a cause for optimism, but um that there is a huge amount of optimism heading into it. And of course when you look at it, and we've got Amazon coming up as well, yeah, you consumer spending has also slid down. We'll have to see whether their cloud business is being effected the same way the Microsoft has.

Now we're certainly seeing the impact from these results in the shares this morning, with Microsoft down six percent right now, Alphabet leading the decline six and a third percent lower, and Texas Instruments now down four point six percent on those earnings. Alex Web of Bloomberg quick take as always great to hear from you, even after a disappointing tech earnings day. We've seen AZDAC futures now down a hundred ninety six points to drop at one point seven percent

their S ANDP futures are on twenty eight. Dow futures down thirty three points. This is Bloomberg Bloomberg eleven three oh weather cloudy today, scattered showers with highs near seventy degrees, sunny, upper sixties Tomorrow. It will be mostly sunny Friday, but cooler with a high only near sixty Right now sixty four in Central Park. Broadcasting live from the Bloomberg Interactive

Broker's studio in New York. Bloomberg E Living Freedom to Washington, d C, Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixt to the Country, Sirius XM chto one nineteen and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak and it's about thirty on Wall Street. Good morning, I'm Karen Moscow, I'm Nathan Heger. Bloomberg Daybreak 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. But we're just about four hours away from the open of US trading. Let's yet you have to date on the news you need to know at this hour. US futures are lower this morning after earning

sir Microsoft and Alphabet despite beating projection. Shares of Microsoft are down about six percent this morning after the strong dollar slowed revenue growth, and shares of Alphabet are down almost six and a half percent after sales missed estimates. Bloomberg Intelligence Senior analyst Mandeep Sing says Alphabet and Google are facing a fundamental problem. Search is the main business and that is what drives margins. The question is is

search saturated? Probably yes, because there's a lot of direct traffic going through these mobile apps. You know the companies that I talked about on the retail side, you don't need search you start off your search on Walmart or Target or Amazon. Bloomberg Intelligence analyst Mandeep Sing says Google is now planning to slow hiring and control expenses. Shares of Texas Instruments are down more than four and a half percent. Karen the chipmaker's forecast misdestimates, signaling a broader

slowdown in the semiconductor industry. So FI head of investment Strategy Liz Young says the outlook for tech stocks may now be uncertain. We're sitting at a point in the year where we've done a lot of work and valuations have seen a decent amount of pain since January, and I think it's less about what's the right valuation for these stocks to be at, and it's more about what

are people actually willing to pay for them. Knowing that we have not solved all the problems that still lie ahead so far, as Liz Young says, she sees broader market volatility continuing for several weeks. We'll tek Erning's continue today.

Nathan with Meta Platforms and Twitter reporting. At the same time, Elon Muski is working to wrap up his acquisition of Twitter, telling bankers he's going to close the deal this week and Bloomberg said, Ludlow has the details the banks, the kind of brace for this borrowing notice that should have come Tuesday. Then the money that the banks have pledged in the form of debt would go into es growth.

Thursday is told these bankers that he fully intend is supposed to deal Friday and Bloomberg's said Ludlows As Twitter shares jump following the news, approaching must do twenties cents a share acquisition price to the housing market now, Karen Renters in the country's biggest cities continue to feel the pinch. New York City has the most expensive rental market in the US, according to the rental listing company Zumper. Boston jumped to the second highest rent surpassing San Francisco, which

came in third. And as the futures they're leading to clins down almost two hundred points or one point seven per cent. Straight ahead your latest local headlines plus a check of sports and this is Bloomberg. Thanks three On Wall Street sixty four degrees in Central Park still got the emergency repairs and keyboard Route thirty six still closed both ways at Broad Street. Michael Barr is still here with more on what's going on in New York and

around the world, Michael, thank you very much. Nathan sparring over crime and abortion. It took center stage Tuesday as New York Governor Kafe hoc faced a Republican challenger U S representatively Zelden in the campaigns only televised government at a real debate, Hocoll blasted Zelden's past support for abortion restrictions, and the governor pointed to Zelden's position on gun laws.

When you had the chance as a member of Congress to stand with other Republicans who finally said enough is enough, you were nowhere to be found. Lee. I mean that's people need to know. You can't talk about because all you have his rhetoric. Zelden vow to repeal liberal criminal justice reforms. There are criminals out there who need to pay the consequences for their action instead of the catch real lease policies. The debate was aired on Spectrum New

York One. The candidates for US Send It in Pennsylvania squared off into debate. Democrat John Fetterman, still recovering from a stroke in May, took Republican memit Oz to task over senior healthcare program, saying Ah supports cutting medicare. Oz denied that and touted his plan to boast to another program for seniors, social Security, making sure that it adequately increases with the inflation that we have. Meanwhile, in Michigan,

the two candidates debated, and they're goobing totorial debate. President Joe Biden talked about Russia and Ukraine and China and a call congratulating the new UK Prime Minister Rishi Sunac. The conversation also touched on the unresolved issue of the Irish border after Brexit. Another setback for w n B a star Britney Grinder in Russia's judicial system, Bloomberg said Baxter. As the story, Russian court has refused to hear an

appeal of Grinder's sentence. What House spokesman Koarne and Jean Pierre says, the US will double down now on getting her free. This is this is a priority, and we need Russia. We are asking and telling Russia to negotiate in good faith. But at this point, her nine year

drug sentence remains in place in San Francisco. I'm at Baxter, Bloomberg day Break Global News twenty four hours a day on air and on Bloomberg Quick Take powered by more than twenty seven hundred journalists and analyst more than a hundred twenty countries. Michael barn This is Bloomberg, Nathan. Thanks Michael on Wall Street time for the Bloomberg Sports Untake brought you by Try State Aunty with John Stenshow all right, Nathan.

The World Series starts Friday. For the Yankees, the off seasons underway, and a couple of reports concerning the Yanks. S San Uy reporting long time general manager Brian Cashman will get a new contract his current one is expiring. Cashman has been the GM since began with the Yankees as an intern in six As for Aaron Judges, future MLB dot Com with the story that the Dodgers are expected to pursue Judge as a free agent and that their plan would be to then move rookie Betts to

second base, where he played in high school. He played their briefly this season. Skip Schumacher, who was a coach with St. Louis, named the new manager of the Miami Marlins. At the Garden the Rangers based an old friend, Alexander Gorgie was the Rangers backup goalie the previous five seasons. Now with Colorado, he and igors Histercan both made some big says. The game went to a shootout, Colorado won three to two. The Ranger coach is Gerard. They played

really us and like I said, were no surprise. We're talking about that before the game. And the guy who's you know, they know this Stanley Cup champion to a quick at past team and they'll go like that. And I thought I bought us into the battlemore. In the second of third Corey Official, Rangers visit the Islanders tonight the Devil's Last Night one six two at Detroit. Next tonight host Charlotte, and the next visit in Milwaukee, Jets and Patriots Sunday at MetLife Jets and Red Hot, winners

of the last four. The Pats are in last place, just got blown out at home by Chicago. And yet Pat's right now when we have a slight favorite. And that's despite a lot of controversy in New England over Bill Belichick's decision Monday night, the bench quarterback Mac Jones, he got him to the playoffs last year as a rookie. He put in rookie Bailey's appy and then said it was his plan all along to use both of them. Pat's white out. Jacobe Myers calls the team's QB situation ugly.

John stashellar Bloomberg Schools. Nathan thanks John seven on Wall Street Time for the Tri State Business Report. Here's Bloomberg City. Fellogreen a tourist street about this, giving New York City's economy a boost. Kashman in waite Field says time square foot traffic is now close to pre pandemic levels again, and that's even without the usual flood of Chinese tourists. Even so, some tourists might find the places they want

to go to closed. Side Dish says some hotspots, including the Tin Building, the massive Nebula Nightclub, the new Kosher Sushi fin in Scales, and Zassi's Pizza are among those either limiting hours or days open because of workers shortages and in some places because of problems with crime. Workers at Cure Leafs Edgewater, New Jersey, location of unionized the Cannabis dispensary workers have joined with the United Food and Commercial Workers Local three sixty union, and Westport leads the

Connecticut real estate market Berkshire. Hathaway Home Services, New England says that's when you look at overall momentum. Stanford Africa Had also says Greenwich is still the priceiest, but buyers there are driving harder bargains. With the Dry State Business Report, I'm Denise Pellegrini 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 of FILLI at radio stations around the world. I'm Steve Podas on K and X in Los Angeles. We're talking about Mattel slashing its profit forecast, has a tough holiday shopping season looms. I'm Corney Donahoe on w h A S and Louisville. Chipotle says that's being low income consumers pull back on spending plan Ginas Servettian for w w BBM in Chicago. I'm reporting the Kraft Times in a Jeff bezos Bach firm are about to announce their

first plant based foods, cheese slices and mayonnaise. I'm Waity to Let on WTVN and Columbus. I'm reporting on the end of the pandemic housing Boom. I'm Stephen Carol and Bloomberg DAB Digital Radio in London. We've been reporting on earnings beats from a slew of top European banks, including Santander and Unkradis, and those are some of the stories are twenty d Bloomberg journalists and analysts working on this morning around the world. It's five thirty nine on Wall Street.

The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. Britain's new Prime Minister, Rishi Sunac is widely seen as pragmatic and competent, virtues lately all but absent from British politics. Investors have greeted his rise with relief, but that might not last long. Sunac inherits a party deeply split over Brexit especially, but

also immigration, taxes, regional inequality and other contentious matters. Meanwhile, the UK has been especially hard hit by the soaring cost of gas, making its inflation among the highest in Europe. Sunac's pledge to restore responsibility make calm markets, but standing by that commitment as the central bank raises interest rates, makes a serious recession possible after the past few weeks. A prolonged spell of boredom is just what the UK needs,

but events are unlikely to oblige. This editorial was written by the Bloomberg Editory, a 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. Listen for Bloomberg opinion editorials every weekday at this time. Terminal customers can read more at Opie I n Go. This is Bloomberg. Bloomberg Sports is brought to you by Audie. Don't let someone else drive off in

the Audie 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 Out and at Bloomberg Quicktape. This is a Bloomberg Business Flash and I'm Karen Moscow.

US dot Index futures falling this morning is Megacap Technology Shares slump in early trading now today futures leading the declines down one point six percent after disappointing quarterly updates from Microsoft, Google, Parent Alphabet and Texas Instruments. And we check the markets every fifteen minutes throughout the trading day on Bloomberg so NASDACK futures are down one ninety one points, SMP futures down twenty nine and DAL futures are down

forty nine. The decks in Germany is up four tenths of upper set ten. Your treasury up ten thirty seconds yield four point oh six percent. They yield on the two year four point four three percent. Nine x scred oil is up six tens percent or fifty three cents at eighty five dollars eighty five cents of barrel comes. Gold up one percent or sixteen dollars ten cents at

sixteen seventy four ten an ounce. The Euro one point zero zero two two against the dollar, British found one point one five seven two and again one forty seven point one two, and Bitcoin it's up two point three percent at twenty thousand, six hundred fifty dollars. As 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. The candidates for Pennsylvania's Senates race squared off on the issues in the televised debate last night on News Nation. Lieutenant Governor John Federman addressed what he called the elephant in the room. I had a stroke. He's never let me forget that, and I might miss some words during this debate, two words together, but it knocked

me down and I'm gonna keep coming back up. Doctor Memonaz made his stance on abortion clear that he would not support a federal abortion ban, which some other Republicans have called for. There should not be involved in from the federal government and how states decide their abortion decisions. As a physician, I've been in the room when there's some difficult conversations happening. I don't want the federal government

involved with that at all. In New York, Governor Kathy Hokell squared off against the Republican Representative Lee Zelden in the gubernatorial race. Local blasted Zeldin's pass support for abortion restrictions and Zelden's position on gun laws. It is a joke to talk about a crime policy that doesn't include doing something about illegal guns. Meanwhile, Zelden vowed to repeal liberal criminal justice reforms. Kathy Hockle is too busy patting

herself on the back. Job well done. The debate on Spectrum New York One took place with now less than two weeks before the midterm elections. Global News twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analyist more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan Okay, Michael. Thanks, It's five forty nine on Wall Street Live from the Bloomberg Interactive Brokers studios.

This is Bloomberg Daybreak and Bloomberg New York Bureau chief Shelley Banjo is with us live in studio this morning to get a little more insight on last night's governors debate in the New York race. Shelley, good morning. Very interesting in those clips that Michael Barr just played in the News to kind of hear Governor Hocle turned the tables on an issue that Lee Zelden, the Republican has really been trying to take advantage of in this race, and that would be the issue of crime. What stood

out to you from last night's debate, Good morning. Yeah, the crime definitely took center stage at the debate, and every time Hocal tried to bring it away from crime, h Zelden would try to bring it right back there. And Uh, you know, it's an important topic that's really resonated with a lot of New York voters in a way that I don't think Hoco has been quite prepared for until the most recent weeks, where she has really shifted her tone to really address a lot of these

concerns around crime. Is there time though we're less than two weeks away, and to have that shift in tone come now, is it going to do her any favors at this point? Well, that's the question because it has been and has been from the beginning Hoco's election to lose. The interesting part is that she was up ahead, she had to double digit lead for for quite some time, and just in the last few days we've seen some recent polls showing a much narrowing, much narrower lead, uh

with Hocal over Zelden. And you saw that last night in the debate. This is the one only time that you have agreed to debate, and she was on the defensive for quite a lot of the debate. And yeah, interesting to hear that as well, particularly when in the lead up to this debate and the lead up over the last couple of months here, it seemed for Democrats that abortion rights was really going to be the issue that they hope to capitalize on following the Supreme Court's

decision to overturn Roe v. Wait. Now, it seems as though that that issue, as far as the catalyst for voters, seems to be fading into the background absolutely, and Lee's elden is completely out of step with most of the voters in New York when when you look at polling around things like abortion, legal abortion, and as well as support for President Donald Trump, Les Eldon is a is

a big Trump supporter. As well as election deniability, those are election integrity, Those are kind of three things that don't seem to comport with a lot of New York as at least according to polling, at least accorint to what people say they think. And yet Hoco has been kind of trotting out these defenses for quite some time, But those aren't the issues that seemed to be now front of mine to voters with the two weeks left

before the election. Now folks are focused on crime and pocketbook issues, you know, the things that come down to two races every time. You know what's in my backyard right now? Yeah, And as we mentioned, crime did seem to be the issue that Leezelden really tried to hammer home on in the debate last night. Were you kind of surprised that we didn't see as much emphasis in this debate on the economy given where voters are right

now with inflation as high as it is. I was, especially because you are seeing that play out across the rest of the country, and you're saying that play out in places like upstate New York where Les Elden is more popular than say New York City, where Local is leading the race. There, they did talk about the economy. Zelden, you know, criticized her for passing the state's largest ever budget, increasing state spending, giving big tax cuts to the Buffalo Bills to keep them in York, which a lot of

people have criticized Hoco on. And to her point, Hocal said, well, you know what, I signed this. I signed all these big economic deals since I've been in governor in the Governor's mansion, including a hundred billion dollar investment from Micron.

So she's trying to kind of tell her story of what she's done as governor over the last year and focus it on the policy she's been able to enact and the actions she's been able to have rather than just the soundbites that that Les Elden is quite frankly better at lots for voters in New York to think about, with early voting beginning actually just this weekend, well ahead of actual election day less than two weeks away now.

Shelley Banjo, New York Or Chief here, Bloomberg News. Thanks for this and thanks for coming in studio to talk about last night's debate. Karen Nathan, It's time fifty four on Walla Street, and it's time now for a legal story. We're watching this morning since d law, Republican Senator Lindsey Graham has been finding us a peanut to testify before US special grand jury investigating criminal election interference in Georgia.

Now he's asking the Supreme Court to intervene, and Justice Clarence Thomas has done that at least temporarily shielding Graham from having to testify. Fulton County District Attorney Fannie Willis wants to question Graham about two phone calls he made to Georgia's Secretary of State Brad Rathnsburger in the weeks after the election for more of Bloomberg's doing. Grosso speaks to constitutional law professor Randy Beck of the University of

Georgia's School of Law. The Eleventh Circuit being one of the more conservative circuits in the country, and in a panel with two Trump appointees, said that this could go forward. Are you surprised then that Justice Thomas issued this stay? I'm not surprised by that. I think Cynator Graham has a couple of things going for him and then some

things that work against him. One of the things going for him is that there is some ambiguity about the extent to which informal investigative activities are covered by the speech A clause. And the other is that it's the privilege against being questioned. And so if the Supreme Court is going to do anything, now is probably the time

that they would want to take the case. And so I can understand Justice Thomas not wanting to make this decision on his own, wanting to keep the status quo as it is until the other justices have the chance to think about it and weigh in a vote from the whole court. I guess technically he could make the decision on his own, but I would expect in a matter like this, he would refer the issue to the

entire nine justice Supreme Court. Is it likely that the Court would take this in a case where I don't see any you know, conflict in the circuits, and you have the Eleventh Circuit unanimously affirming the District Court judge, and the District Court judge giving some you know, leeway for Lindsay Graham to object to certain questions. So I think that there could be an argument made that there is disagreement in the circuits about the scope to which

informal investigative activities are protected. I'm not sure though, that that will carry the day for Senator Graham, because, as the Eleventh are pointed out, the District Court protected him against questions about anything that could be characterized as informal investigation.

And so I think, you know, even the Supreme Court was convinced that there is an issue that warrants their consideration, they may decide this is not the case to do it, because it wouldn't really help Senator Graham any more than the District Court already has. There's been some criticism of Justice Thomas for not recusing himself from cases like this covering the elections because his wife is a conservative activist who played a role in the effort to overturn the election.

Do you think that he should be recusing himself. I don't think just because one has a spouse who has, you know, kind of certain political activities, that that necessarily means you need to recuse yourself from any case relating to the election. I think, you know, if there were the thing that came before the court that his wife was involved in, that would be a much much clearer

case for accused, I think. And as Professor Randy Beck of the University at Georgia School of Law 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 the show at Bloomberg dot com.

Slash podcast. Attorney's Confined Exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b law Go, and we're watching nazdack futures plummet this morning, down about one point six percent, led by Microsoft and Alphabet, both down in early training, Microsoft down about six percent, in Alphabet down six point two percent. Much more on that straight ahead as Bloomberg day Break continues. And this is Bloomberg