Bloomberg Daybreak: October 27, 2022 - Hour 2 (Radio)

another federal investigation. Plus President Biden ones Russia any nuclear attack but being an incredibly serious mistake. I'm Michael bar More. Ahead, I've done Statshowering sports overtime at the Garden, the Nix speech Charlotte, the Nets lost in Milwaukee, the Islanders shut

out the Rangers. That's all's training. Ahead on Bloomberg day Break on Bloomberg Elving Free on New York, Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nineteen and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Good morning, I'm Nathan Hagar and I'm Karen Moscow. SMP future is little change this morning, while Nowsdack future is fall where coming up to six

oh one on Wall Street. We check the markets every fifteen minutes throughout the trading day. On Bloomberg. Right now again, SMP futures are a little change down futures have one one, while Nastack futures are down fifty one. The decks in Germany's down about six tenths of uppercent ten year treasury down thirteen thirty seconds, yield four point oh five percent in the yield on the two year four point four three percent. Nathan, Karen, we begin with another tech earnings

disappointment to day after Microsoft and Google shares plunge. We're watching shares of meta platforms faullent. This morning, the Facebook owner gave a revenue forecast on the low end of estimates. We get more from Bloomberg, said Ludlow in our nine sixty news room in San Francisco. What spooked investors, at least in the first instance, was the tepid forecast met

a gay for sales in the current period. Revenue will be between ty and thirty two point five billion dollars in the final three months of this year, below street expectations. And the story is when we know the softening ad market is hurting Meta. We went into this knowing that would be the case, but as the cool started and went on, it became clear that actually what spooking investors is Meta and Zuckerberg's commitment to fuel and fund this

transition to the metaverse. Zuckerberg said that actually, on a year on year basis, Meta reality labs would continue to have growing losses above lowth For Bloomberg News in San Francisco, great things and big keek Ernie's continue today. We have a pair of giants reporting this afternoon, and Bloomberg's Jeff Bellinger has more. Apple and Amazon are both scheduled to report after the market's closed today. Analysts went Bush Securities say higher iPhone prices and an improving supply chain may

have helped Apple beat revenue forecast. The Ease Securities says Amazon likely posted faster revenue growth for online stores and third party solers, but both companies face headwinds. Ample is dealing with the stronger dollar and weakness in China, and a whole hume Second Prime Day event at Amazon suggested more spending is going offline. Jeff Belinger Bloom Bird Day break alright, Jeff, thanks back to the market now. Futures are mixed ahead of those earnings and despite disappointing results

from Meta. Morgan Stanley's Mike Wilson is a well known stock market skeptic who correctly predicted this year's slump. Now he thinks the bear market in US equities could conclude sooner than any think. Ultimately, the bear market will be over, probably some time in the first quarter. Now, all this is you know, subject to revision, right, So I want

to make it perfectly clear. If the market starts to trade off again and the SMP breaks down and blows through thirty six fifty on the down side, will be bears again. Morgan Stanley's Mike Wilson was ranked the number one portfolio strategist in the latest Institutional Investor survey. Well in Europe, nathan A Bank and turmoil is front and center. This morning. Shares our credit suites are down almost eleven

percent after posting its fourth straight quarterly lost. The Swiss Bank is unveiling a massive turnaround plan which includes a four billion dollar capital raise, a curve out of its investment bank, and thousands of job cuts. It's the most urgent attempting yet to repair credit sweezed after huge losses and management chaos. We spoke this morning with CEO Alrick Kerner. What is the new Credits fiz. You know, it's a much simpler, more stable, much more focused bank going forward

which will deliver sustainably profitable results to our shareholders. Credits Free. CEO Alreck Kerner may have a come as in an interview with Bloomberg's Francy Lagoise. Stay tuned for more in that conversation coming up shortly on Bloomberg daybreak. Staying in Europe, Karen, it is a big day for the European Central Bank. The e c V is expected to lift its main interest straight to the highest level in more than a decade.

We get a preview from Bloomberg's leand Garns. A seventy five basis point hike is a consensus view for today's policy decision from the e c B. Anything else would be a big surprise, so looking past the recession fears to keep a targeting inflation. Less clear though, is whether we'll get any indications around a timeline for quantitative tightening and something investors are watching closely. Any moves to limit the gains banks on making from the ECB's crisis program

of cheap loans in London. I'm Leanne Geron's Bloomboat Daybreak lean thanks Becker. In the US, economic growth isn't focused. The government issues data on third quarter GDP this morning forecast call for again at two point four percent, and Bloomberg's Vinydale Judais has more GDP posted back to back losses in the first and second quarters. Bloomberg Economics says the third quarters headline rebound may conceal trouble in the details such as sales and business inventorys. There are other

U s data on tap today. Manufacturing data factory owners for durable goods may indicate moderation reflecting US inflation fears in the US labor market. Bloomberg Economics as weekly jobless will probably continue to cover around historic close the Bloomberg day Break. Okay, Vinny, thank you. Let's turn to geopolitics now and the potential setback for President Biden's economic pressure

on Russia. The administration is now being forced to rework its plans for price caps on Russian oil, Bloomberg said, Baxter has the story. It looks like they're going to have to scale back their plans and light of the volatility in the markets. Instead of strangling the Kremlin's oil revenues by imposing a strict lid on prices, US and European Union are likely to have to settle for more loosely police cap at a higher price than once in vision.

An earlier iteration of the plan had the cap and the range of forty to sixty dollars per barrel, but now it looks like it will have to be much higher. In San Francisco, I'm at Baxter Bloomberg Daybreak and thanks. Finally, the world's richest man is telling Twitter employees he does not plan to cut of staff. Bloomberg News has learned that Elon Musk denied those numbers and an address to

workers at the company's San Francisco office. Still, the billionaires still expect you to cut some staff when he takes over the company. The four billion dollar deal is expected to close tomorrow. Yeah. Bloomberg day Break 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. This is Bloomberg and it is now six

oh seven on Wall Street. It's fifty seven degrees in Central Park. So got that overturn tractor trailer in Rockaway westbound Route eighty. We'll tell you more in traffic First, Michael Barr is here with what else is going on in New York and around the world. Michael, thank you very much. Nathan, New Jersey Democratic Senator Robert Menendez faces another federal investigation about five years after a trial on

federal corruption charges ended in a mistrial. A Menendez advisor says Senator Menendez is aware of an investigation, However, he does not know the scope of the investigation. The probe is being conducted by federal prosecutors in the Southern District of New York. President Biden warned Russia's of Vladimir Putin that any use of a nuclear weapon would be an incredibly serious mistake. It comes as Russia says it carried

out military exercises simulating a retaliatory nuclear strike. Meanwhile, former U s Special Representative for Ukraine negotiations and former ambassador to NATO Kurt Volker talked about Russia's claims without evidence that Kiev's forces intend to use a so called dirty bomb. But what Putin is doing is he is trying to get inside the heads of leaders in the West to make them feel that this is too dangerous and we have to tell the Ukrainians to surrender somehow, give up territory,

you know, concede to putin something. Former NATO ambassador Kurt Volkers spoke on sound on which airs at five pm on Bloomberg. Iranian security forces opened fire on protesters in the past forty days. Thousands of people have taken to the streets to denounce the depth of a twenty two year old woman in custody of the country's morality police. She was accused of breaking iron strict dress code. State Department spokesperson Dant Patel reiterated u S efforts to support

protesters in more than a hundred cities in Iran. The regime's ongowing violent crackdown, pervasive surveillance of citizens and disruption of communications are the latest reminder of the Islamic Republic's flavorance disregard for the fundamental freedoms and human rights of her audience. Spokesman Patel says Iran's leadership is facing a

problem of its own making. With just weeks until the midterm elections, a second woman has come forward claiming that she got pregnant and then had an abortion paid for by Georgia GOP senate candidate Herschel Walker. Walker addressed Jane Doe's allegations during a campaign event, saying he is done with his foolishness and denied the allegations. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven under journalists analyst more than

twenty countries. I'm Michael Barr and this is Bloomberg Nathan, Thanks Michael. Almost six ten on All Street Time with the Bloomberg Sports Update. Bryant you by tri stayed out. He with John Stah all right, Nathan and Knicks back this season with pretty much the same roster, with one exception the edition of Jalen Brunts in the new Knick point guard on display at the guard and twenty seven points third seen assists seven rebounds. Knick speech Charlotte one one,

thirty one and overtime. They're up to a three and one start. Worth noting they began last season five and one and still ended up with down here missing the playoffs. And that's just one in three. Lost in Milwaukee one ten to ninety nine. Too much Jannis done to the compo forty three points. Kevin Duran had thirty three. Steve Nash got objected the first time his coaching career. Lebron James had not started the season oh and four since his rookie year in Cleveland twenty years ago. The Lakers

are owing four. They lost in Denver. Rangers started three and one. They've lost their last four. They've score only five goals over those four games. Shut out at the ES Arena by the Islanders. Zelia Surokan, Kyle Palm Mary scored twice the Isles one three nothing. Week eight starts tonight at Tampa Bay, where Tom Brady the Bucks just three and four. They take on Baltimore Giants. Look for

US seven and one start Sunday in Seattle. A lot of reasons for the Giants improvement, but one certainly Daniel Jones, having thrown only two in their steps. We're trying to make quicker decisions, trying to get the ball out my hands as as soon as possible. I don't think that's any different from things I've done in the past. I think you know, you're you're better at it every week and and I'm certainly better at it and I've been

in the past. So uh, that's the goal for me, is that can continue to be quicker and and uh make the right decision get the ball in the hand. Jones was just named NFC Offensive Player of the Week. How Steinbrenner's first comment since the end of the season, the Yankees owner said he doesn't see the Yanks not keeping manager Aaron Boom John stas Sports Thanks john SMP futures up three point, staff features up a hundred nine, nastac features lower by forty three points. Meta platform shares

down almost twenty points. We'll talk about the numbers with Alex Webb of Bloomberg. Quick Take. This is Bloomberg and the Bloomberg Sports Report was brought to you by Audie. Don't let someone else drive off in the autie model. You've always wanted to visit your local Tri state autie dealer to get behind the wheel of yours today, or visit autie Offers dot com for more information, markets, headlines and breaking news twenty four hours a day at Bloomberg

dot com. The Bloomberg Business Outland at Bloomberg Quick Tape is a Bloomberg Business Flash and I'm Karen Moscow. NASDACK futures lower this morning as Meta Platforms drops almost twenty percent in early trading after reporting earnings. NASDAG futures are down forty two points s and P futures they're little changed. DAL future is up one six and the decks in

Germany's down seven tenths of a percent. Ten year treasury down fourteen thirty seconds, held four point six percent yield up a two year four point for a three percent Nimex fruit oil is up a tenth of upper sent now of eighth cents at eighty seven dollars ninety nine cents, and Barrel Kovec called up two tenths per cent or three dollars at sixty and sixty six twenty announced and the euro is at one point zero zero four three

against the dollar. That's a Bloomberg Business Flying show. Here's Michael Barr with more on what's going on around the world, Michael Karen, thank you very much. Russia carried out military exercises simulating a retaliatory nuclear strike, as President Joe Biden warned Vladimir Putin that any use of a nuclear weapon

would be an incredibly serious mistake. Secretary of State Anthony Blincoln accused China of undermining the decades long status quo that has kept both nations from going to war over Taiwan, saying Beijing was trying to speed up at seizure of the island. A second woman has come forward claiming Georgia Senate candidate Herschel Walker paid for her to have an aborship. Walker denied the allegations, saying I am done with this foolishness.

In the end, YEA the next one. In overtime over the Hornets on one, the Net's lost in hockey, The Islanders blanked Rangers. Three Zip Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than under journalists and lest more than twenty countries. Michael Barr and this is Bloomberg. Thanks Michael. Six nineteen Now on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg Daybreak as we continue to keep our

focus on meta platforms. The latest big tech company to report earnings, and the shares this morning are down nearly twenty. It's a disappointing revenue forecast and the prospect for soaring costs as the CEO Mark Zuckerberg continues his pivot away from Facebook to the metaverse. Let's bring back Bloomberg Quick Take correspondent Alex Webb for more on this. And it really is a cost story, isn't it. Alex. Yes, we knew that the revenue was not was going to decline.

It actually beat analyst expectations. The shock was really on the bottom line, where on most of the profit measures itself short of expectations, and that clearly reflects the the capital that Facebook is now spending on new products that is, of course metaverse hardware and software, but it's also like efforts defend off TikTok, which is, you know, tearing into its core market of uh online ads, particularly online ads that target that lucative eighteen to thirty five year old demographics.

And we're seeing the difficulty that not just Facebook, but a lot of other social media companies are finding now getting that ad revenue in this difficult economic environment, and that's supposed to be the underpinning for Zuckerberg's plans to build out the metaverse. I mean, what's the challenge going forward?

The challenging basis is using the capital to invest in something which he can convince investors is going to the live a growth ultimately and then really delivering that growth in order for the product to be appealing, and not only has to be good technologically, but it needs to be a platform. It needs to be a gateway into loads of other fun, interesting experiences, and those experiences only really come about if you've got a rich uh community

of developers and companies building products for your platform. That's what Apple has um for um iOS, That's what Google has for Android, and Apple has been laying the groundwork for whatever it's augmented virtual reality product ends up looking like for several years, so maybe five or six years, where you can do augmented reality things on a fairly rudimentary level. You can do augmented reality things with your iPhone.

The some of those products will then presumably be reported into that new product that Apple will envailed, perhaps as soon as next years. Facebook doesn't have those millions of developers. So even if It's products is blockbuster when you know, really matures, unless it has all of those opportunities within its platform, it'll struggle to compete. Well, if we do, I see Apple and more of a solid footing. Could that mode well for the earnings that Apple reports after

the bell today? I think probably, given the cadence of negative news that we've had from earning seasons so far, expectations probably not all that high for Apple. We already have reporting from our colleagues Mark German and Debbie Woo about the number of iPhones they had planned to produce in this quarter that they and that some of those have maybe been tamped back a little bit already, so we have some signals about how well it's going to do.

You know, Apple has managed to build a pretty resilient business by beefing up its services offering that includes things like iCloud, the app store, Apple Music, Apple TV, plus

all those sort of products. And the net effect of those is that it blues people more tightly to their iPhones, and so it makes it way harder to say, actually, I'm going to scrap my iPhone and go to Android because you've invested so heavily in ecosystem and that means that even in these sort of climates where it can be harder to sell the products, Apple manages it to kind of do pretty well. So the optimism around Apple

is perhaps a little bit brighter happening recent weeks. Yeah, we heard as well that Apple is going to be raising prices on some of those services that so many of those customers are glued to. We'll get those official numbers, as I say, after the bell later this afternoon. Alex Webb of Bloomberg Quicktake. As always, thanks for the double duty this morning on Bloomberg Daybreak and once again checking shares of meta platforms in the pre market. Karen, they

are down nineteen and a half percent. Well, Nathan, it is on Wall Street and now we're going to bring you back to our interview with credits Sweet CEO Ulray Kerner, the banks unveiled a plan that includes a multibillion dollar capital raised, massive job cuts, had a carve out of the investment bag. CEO Ulrich kurr R talked about the three year restructuring plan with the Bloomberg's Francy in laqua.

This is, as you say, a big day. We are all there, that we are there, it's a big day also for all our people when we're announcing now today what is basically new credits with and what is new credits wizz You know, it's a much simpler, more stable, much more focused bank going forward which will deliver sustainably

profitable results to our shareholders. And what is very important if we'm at here, how we how we came here, so to say, we take a very hard look, you know, at the needs of our clients and designed everything around the needs of our clients. So what was your overarching theme? How did you come up with this plan? What was

your reasoning and getting here? Many different reasons. I think the as I said, the bank is slightly too complicated it today the bank has parts which are not profitable enough, as we all know from the share the perspective, and that's why we came up with, you know, the need of taking very decisive affections in mainly three different areas.

The one is radical restructuring off the investment bank. The second one is significant reducing costs going forward as you have seen, and the third one it is time for the five things that you need to notice start your day. Brought to you by Interactive Brokers ib Care. Event Trader offers a new way to trade futures. Use event contracts to trade your opinion on yes or no questions and key CME futures markets. Learn more at event trader dot

Interactive Brokers dot com up first. Shares of Meta Platforms are down about nineteen and a half percent in early trading after the company gave a disappointing outlook. It also revealed ballooning costs to fund its virtual reality project, the Metaverse. CEO Mark Zuckerberg pleaded patients on a call with investors, I think we're going to resolve each of these things over a different parents of time, and I appreciate the patients and I think that those were patient and invest

with us to end up being rewarded. Mark Zuckerberg says Meta's long term bets will pay off, but did not explain further ill Sticking with big tech, Karen, we get two massive earnings reports after the bell today when Apple and Amazon report. Looking at Twitter, Bloomberg News has learned Testas CEO Elon Moscow, set to take over the company tomorrow, told employees. He does not plan to cut seventy of them, as previously reported. Bloomberg's at Ludlow has more it didn't

explicitly rule out layoffs. Generally speaking, Um, he walked in the Market Street office carrying a kitchen sinter there, and I think that the joke was, this is really happening. We should all let that same time, Bloomberg's aid Ludlow says Elon Musk will meet with staff tomorrow, when his forty four billion dollar deal to buy Twitter is set to close. Nathan turning to the markets this morning, US

futures are mixed as earning season continues. Notorious bear Mike Wilson says his team at Morgan Stanley believes the downward trend in US equities may include soon. We're still bearish in the intermediate term. We don't think the bear markets over, but we do think this Tactico rally is going to be big enough to try and pivot and trade it. Morgan Stanley Chief equity strategist Mike Wilson says that outlook could still change. Traders will also be watching economic data today.

We get are reading on third quarter US g d P at eight thirty am well straight time over in Europe, Karen banks are in focus, with Credit Suits down twelve percent after posting its fourth straight quarterly loss. The bank also unveiled a massive turnaround plan that includes a multibillion dollar capital raise, a carve out of its investment bank, and massive job cuts. CEO Rick Kerner spoke with us

about the plans. We want to go through the transformation of the next three years with a very very strong capital base. It will become profited with definitely from twenty four onwards. CEO Rick Kerner says Credit Suits does plan to be profitable again starting and we are watching earnings cross the Bloomberg. Right now, we are hearing from Caterpillar. It reported a third quarter profit beat analysts estimates. Southwest also reporting its profit, beating analysts estimates as well. In

the third quarter. MERC also beast beating analysts estimates, and it boosted its sales forecast for the fiscal year. Taking a look at futures this morning, right now, S and P futures are of about three points and now futures of one thirty two and NASDAG futures are down forty three and that's the five things that you need to know to start your day. Brought to you by Interactor Brokers and straight Ahead. Your latest local headlines, plus a

check of sports and this is Bloomberg. Thank you. Karen sixe on Wall Street fifty seven degrees in Central Park. Still got that overturned tractor trailer westbound eight in Rockaway. Michael Barr is still here too. One on what's going on in New York and around the world. Good morning, like all, Good morning Nathan. Democratic Senator Bob and Ndez of New Jersey, who avoided conviction on corruption charges five years ago, is reportedly the subject of a new federal instication.

An adviser for the senator, Michael Suliman, says Senator Menendez is aware of an investigation and whever he does not know the scope of the investigation. No word on what sort of alleged wrong doing was involved. Russia carried out military exercises simulating a retaliatory nuclear strike, as President Joe Biden warned Vladimir Putin that any use of a nuclear

weapon would be an incredibly serious mistake. Echoing Biden's warning of grave consequences, Secretary of State Anthony Blincoln spoke in an interview with Bloomberg. We haven't seen reason to change our own nuclear posture, but it's something that we're tracking very carefully. And we've also uh communicated directly and very clearly to h to the Russians, to President Putin about the consequences that would fall from any use of a

nuclear device. The Pentagon says the US had been notified that Russia would conduct the exercise and compliance with arms control obligations. New York City is expected to make a historic appointment this morning. Laura Keimeno will be the first woman f d n Y commissioner. Kevanaugh, who was the second in command, has been acting commissioners since Daniel nigros

retirement in February. New York City will slash the number of middle schools that rely on competitive admission criteria known as screens, by nearly seventy in the coming academic year, and increased the use of lotteries. According to the New York City Department of Education, the number of screened middle schools will decrease to fifty nine from one. School Chancellor David Banks called it a simpler and favor process. This

is all alive. That's the response from the US Senate candidate Herschel Walker to a second accusation from a former girlfriend who says Walker paid for her to get an abortion. Walker appearing at the campaign stop and Dillard George had dismissed the matter as nothing more than a stunt brought on by his political opponents. They got crushed at the debate. Now the Democrats are doing say whatever they can. The

wind is five, wind is the seen. But I'll then to know they don't know Hershel Walker Walker at and I'm done with this foolishness. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists analysts more than a hundred twenty countries. Michael Barr, this is Bloomberg. Nathan, Thanks Michael. Six thirty six on Wall Street Time with the Bloomberg Sports Undate, brought to you by Try stayed

out here with John stash Our. All right, Nathan Nixt who began their seasonal and overtime loss, had themselves an overtime win at the Guard against Charlotte Knicks, led by twelve and then trailed by five and just over two minutes left. Janlon Brunson big three point and o t and the Nicks one one thirty four, one thirty one. Big night for Brunts in the new point guard scored twenty seventy at thirteen assists, seven REBA. When we're not playing our best and when we give up leads, how

can we respond? And those are signs of good teams that we can do it consistently. I think we're gonna pren our southen position where you can be the best team we can be. But um, this is a good step for us. We definitely gotta continue a better but this is this is a good step after three home wins. It'll be tougher for the next tomorrow in Milwaukee, Bucks or three. You know, they just beat the Nets one ten to ninety nine. Nets had a big second quarter.

They were up twelve with a half man outscored second half sixty seven to forty four. The second half is where Jana sent At the compos scored thirty four of his forty three points. The U bas Arena Islanders shut out the slumping Rangers three nothing, forty one saves for Ilias Sirokan. Kyle Palmary scored twice. Rangers have scored only five goals in their last four games. NFL Tonight, Baltimore

at slumping Tampa Bay Bucks just three and four. Tom Brady hasn't had erected like that since forty years ago. In New England's baking of the Patriots, They've visited the

Jets Sunday. The Pats have won the last twelve meetings and Mac Jones will reportedly be their starting QB despite getting bench the other night, the Giants Sunday in Seattle, Giants has had two starting offensive linemen suffered knee injuries, but Nick Gates has been act Evadi how sins Week two last season when Gates suffered a gruesome leg injury

that needed seven surgery. But I'm stay Actually were Bloomberg Sports, Thanks John sixty seven on Wall Street Time to take a look at stock some of the names moving in the pre market, Bloomberg radio and TV markets corresponding creating gout is watching earnings crossed the Bloomberg just this morning. But Meta Platforms is still overshadowing everything Creating. Oh absolutely, it is taking the cake in terms of simply the the story to know. Meta Platforms M E. T. A

is your taker formally known as Facebook. We should add down about twenty in the pre market. But it's interesting because there's a little bit of a ripple effect here, and I'm no surprise they did say they're dealing with a lot of the issues that you heard in Alphabet and Microsoft's earnings as well, inflation, higher costs as well, but they really emphasize this idea about just how much they're investing on the metaverse and just how much that's

going to cost and eat into their bottom line. But Mark Zuckerberg coming out and saying, you know what, guys stick with us, have faith in the long term process, trying to reassure investors it's not really working out for the shares this morning. And remember shares were already down about this year now and down another in the pre market,

so that's going to be significant. But what's also interesting is as he talked about these kind of skyrocketing costs, these investments into the metaverse, there's another company that benefited off of that, and that is in Video n v

D A your taker up two point nine percent. Now we know a lot of these type of chip companies, and Video specifically have been trying to branch out and diversify a little bit, and Video specifically also makes chips for data warehouses, data warehouses that one day could power

the metaverse. So the idea here being that if Facebook UH or Meta now known as Meta actually invests more and more in their kind of metaverse technology, and the underlying servers and video actually benefits because they get that business from Facebook. So kind of a little interesting domino effect. Well, let's talk about some of these earnings that just crossed a few beats this morning, creating a few beats this more.

And I'm gonna start with Southwest here because some good numbers coming out of there, up about four percent in the pre market. The tickers l u V now they did come out and they said they're actually seeing a passenger revenue come out about five point six billion dollars UH. The estimate was five point six six, so about in line, which is good news for a lot of these airlines that are perhaps looking at a consumer that is less willing to spend perhaps. Nevertheless, it is boosting those shares.

You also have Mark by the way, m r K is your ticker, another beat for them, up about six tenths of one percent. And what's great about this company is that they not only beat their estimates, they boosted their full year sales forecast. That is not something you hear very often going into Like I said, what's expected

to be a leaner Christmas, a leaner holiday season. Nevertheless, Mark really benefiting, I should say very quickly, honeywell as well, h o N spiking about seven percent in the pre market. All right, Bloomberg Radio and TV Markets corresponding. Crety cooked out with us this morning. As we continue to watch the market as a whole ahead of the open, futures are mixed. SMP futures little change to the downside now Doubt futures are still higher, up a hundred forty five points,

NASTAG futures still on the decline. They are down sixty five points, and the tenure treasury now down fifteen thirty seconds, the yield four point zero six percent. This is Bloomberg. Bloomberg Sports was brought to you by Audie. Don't let someone else drive off in the Audi model you've always wanted. Visit your local price 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 at and at Bloomberg Quicktape. This he's a Bloomberg Business lash. It's another busy morning for corporate earnings. SMP futures are that will change, while NASDAG futures are falling. Let's go to the Sword breaking newsdesk for today's morning call, and here's Bill Maloney. Bill, good morning, Good morning, Karen u s features are mixed amid the plunge in Facebook

this morning. If you just currently hired by a hundred and fifty six points, smps are a little change, like you said, and NASDA futures are lower by sixties seven. The US ten year old at four point eight percent, Gold is down three, oil is trading in the green, and Bitcoin is lower by one percent. Hong Kong rose point seven percent overnight, while RPM markets are trading mostly lower this morning and back in the US on the economic Frinday thirty g d P initial jobs claims and

durable goods orders. After about US night, Facebook did reports she has it down twenty percent in the pre market, and Ford trimmed its outlook regarding some of the earnings this morning, merket boosted its fiskey your just DPS forecast, and Caterpillar beat estimates and other news people familiar said that Elon must told Twitter staff he doesn't plan to cut seventy five of jobs and wrapping things up, Ferrari was raised to buy HSBC Facebook cut to Eco Weight

and Morgan Stanley Live from the First to breaking news, descam boo maloney care all right, Bill, thank you, and to hear like breaking news over your Bloomberg type squawk on your terminal SKU you a wuk, 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. Russian President Vladimir Putin personally oversaw Moscow's first major nuclear drills since he invaded Ukraine, simulating a massive nuclear strike.

Western allies warned Russia could use such an event as a false flag to blame Ukraine for an attack that Moscow carries out itself. The International Energy Agency says it believes global emissions will peak. In the group's annual World Energy Outlook report finds that the global energy crisis, triggered by Russia's invasion of Ukraine and the ensuing increase in fuel prices are propelling investment in renewable energy in the NBA. The next one in overtime over the Hornets one four

one the Nets lost in hockey. The Island is Blank, Rangers three Zip Thursday Night Football to Night, The Ravens take on the Buccaneers. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than seven hundred journalist and analysts more than twenty countries. Michael Blair and this is Bloomberg keron Ry, Michael Berg.

Thank you on Wall Street, and we turned to news and science and technology now with the Bloomberg n j I T. Stemmer Report, brought to you by New Jersey Institute of Technology, ranked a top one hundred national university by US News and World Report and ever fourteen in the nation on Money's Best Colleges List. Learn more at n j I T dot E d U and here's

just making news in science, Technology, engineering, and math. The World Meteorological Organization says three main greenhouse gasses hit record high levels in the atmosphere last year. The U N Weather Agency said of the three main types of heat trapping greenhouse gases, carbon dioxide, methane, and nitrous oxide. The

biggest jump from twenty twenty one was in methane. It says methanes concentrations in the air came in with the biggest year on year increase since regular measurements began four decades ago. Tesla faces a US criminal investigation into its self driving system. Bloomberg News has learned that the Justice Department is investigating whether the company made misleading claims about Tesla's cars ability to drive themselves. Neither the government nor

Tesla are commenting. And nearly four hundred school districts across the country are receiving roughly one billion dollars in grants to purchase about two thousand, five hundred clean school buses under a new federal program. The Budden Administration is making the grants available as part of a wider effort to accelerate the transition to zero emission vehicles and reduce air pollution near schools and communities. And that's the Bloomberg and

j I T Stem Report. Nathan, Thanks Karen. We're live from the Bloomberg Interactive Brokers Studios or at six fifty one on Wall Street Time Now to check what's going on in d C. Some of the top stories in our nation's capital include the Biden administration reworking its plan

to cap Russian oil prices. House Republicans launching a probe into President Biden's oil reserve releases, the President honing his economic message in the waning days of the mid term campaign, and Treasury Secretary Yelling playing a more political role with a visit to battleground Ohio. Let's bring in Bloomberg Government Congressional reporter Jack Fitzpatrick to get more on some of these stories, including some really important work by our economic team.

Jack on the Biden administration now being forced to rework it's a plan on a Russian oil price cap. Yeah, this is uh not a great sign for the White Houses ambitions for that cap. They're they're essentially scaling back what they have talked about. Uh. They originally talked about a forty to sixty dollar preparal UH price on Russian oil. Are report or colleagues are reporting this is going to end up being somewhere in the upper range of that UH.

And they were trying to see how many countries they could get involved in this UH, and as of now it's looking like it's the Group of seven nations plus Australia, and our collegs are reporting that South Korea has also privately said that it's it's going to comply UH, and that there is an attempt to see if New Zealand and Norway could get on board. But it's going to be a smaller group of countries UH. That makes the Russian threat that they will refuse to sell to the

country's involved more legitimate. UM. So it's sort of a reduction of the US's expectations on how much this can do after Russia has continued to make money off of oil sales and and essentially continue to fund its war in Ukraine. Of course, this is coming after the OPEC plus nations came in with that two million barrel a day oil production target cut announcement, and I guess signs that perhaps Saudi Arabia, the leading OPEC nation, still have

a lot of sway in this global oan market. Yeah, that was a significant factor in UH sort of tamping down the the US's expectations for how much good could be done with this. A lot of frustration from American officials in both parties with the Opeque Nations and with Saudi Arabia, especially as you see uh President Biden sort

of maintaining the relationship there. Uh, you know there there was quite a bit of frustration with Saudi Arabia, which is that that that plays into this and was the Opeque plus uh cut in production, Uh definitely undermined this attempt to to I guess hold Russia's feet to the fire. And on top of this, Jack this word this morning that Republicans on the House Oversight Committee are going to start an investigation into the strategic oil reserve releases that

President Biden has been doing for the last couple of months. Here, what's going on with that? Yes, they have sent a letter the Republicans on the House Oversight Committee seeking documents relating to the decisions to release oil from the Strategic

Petroleum Reserve. And this is something that Republicans had criticized, saying that those releases seemed to be politically motivated, especially the ones that have occurred in the lead up to the mid terms, as it obviously benefits Democrats and the party in power to see gas prices go down. But in addition to just being opposed to that. This, this move by the Oversight Committee Republicans kind of previews the ways that Republicans would act if they win the House

and or Senate. Is going to be a significant amount of focus on oversight and investigations of the Biden administration. Uh. And so this is you know, almost I guess a move from a House Republican majority before it's a majority already. Uh, this will clearly be uh, sort of an issue on the campaign trail already. But if they do take the majority, this will be something they'll they'll be focusing on in

in trying to rein in the Biden administration. And with all this in the backdrop, Jack, we have President Biden going back on the campaign trail to end this week. What's he going to be focused on? Uh, He's definitely gonna be focused on the economy. Today this afternoon, he's going to Syracuse, New York. He's talking about an investment by Micron UH, a microchip manufacturer that is a pretty significant focus for Democrats after the Chips Act that was passed.

He's also going to be headed to Philadelphia on Friday. So there's a very clear sort of federal investment and jobs message that he is he is pushing in certain states. There's certain places he's not going so much, Arizona, for example, but you see him going to New York State and then again another trip to Pennsylvania, where he's been a number of times recently. And in just a thirty seconds here, Jack,

I guess I'll focus on the economy. May be part of the reason why we've got Treasury Secretary Janet Yellen hitting the campaign trail in Ohio today right going to northeast Ohio. She's gonna be talking in Cleveland about rust belt issues and investments, gonna raise production of parts that

go into electric vehicles there. It's interesting to see a Biden administration official, uh, sort of making a play where Tim Ryan is involved in the Senate race there he's sort of distanced himself from National Democratic figures, but that very much is also his message on the quote unquote battery belt. So that's a that's another high profile push

from the Biden administration. Now. Also interesting to see someone who you think of more as a steeped in the economy rather than potentially a political speaker going out and hitting the stump. But we'll leave it there. For now. Jack Fitzpatrick of Bloomberg Government, as always, thanks for the update from Washington, and you can read more at Bloomberg

dot com or on the Bloomberg terminal. Listen for updates on all those appearances today on Bloomberg Radio in Washington Bloomberg and one oh five point seven FM h D two, and tune into Bloomberg Daybreak tomorrow. We're gonna wrap up tech earnings and get reaction to the results after the belt today from Apple and Amazon. Gene Munster, the co founder of Loup Ventures, will join us tomorrow morning to recap big tech. Looking ahead to the market open this morning,

futures are now mixed. S and P futures little change to lower down futures up a hundred forty two, Nasdaq futures down seventy points. For Karen Moscow. I'm Nathan Hager, and this is Bloomberg