Bloomberg Daybreak: October 3, 2022 - Hour 1 (Radio)

third quarter delivery estimates. Rescue Cruise in Florida continue to search for people who decided to grind out hurricane and plus Brazil's presidential elections headed for a runoff vote on

Michael blarm More, I'm John stash Our. In sports, the Mets appear headed for a second place finished after getting swept in at lant out of the Yankees lost wins for the Jets, and John, that's all's training head on Bloomberg Daybreak on Bloomberg, Eleving Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via the

Bloomberg Business. Good morning. I'm Nathan Hagar and I'm Karen Moscow and US DOT Index futures are mixed this morning. We are coming up to five o one on Wall Street and we check the markets every fifteen minutes throughout the trading day on Bloomberg. S and P futures are down four points now, futures up forty six and AS day futures down fifty eight. Ten year treasury up eleven thirty seconds. You have three point seven eight percent and

they yield on the two year four point one nine percent. Nathan, Karen. We begin in the UK, where there has been an about face from the government. Prime Minister Liz Trust is dropping her controversial plan to cut taxes for the highest earners. Let's go to Birmingham, England and get the latest with Bloomberg Daybreak. You're a banker, Caroline he Good morning, Caroline,

Good morning, Nathan and Karen. The Chancellor Quasi Quality has said that he has listened and is reversing the plan to scrap the top rate of tax in the UK announced this part of a mini budget ten days ago, which prompted a market route the U turn. Despite the denial by the Prime Minister up until yesterday was driven by Toy MPs unhappy with the policy as the Conservatives

plunged in the polls. Sterling and UK guilt have reacted positively to the reversal and money markets are paired Bank of England rate hike bets, but it is a major embarrassment for Trust and Quarting. Less than a month into office. The mood from MPs, including from Mike Wood, is still positive. Quiet Turning told media here in Birmingham at the party's annual conference that he's not considering designing. Instead he's focused on delivering growth. He gives his main conference speech at

four pm UK time today in Birmingham. I'm Caroline Hedger Blue Bag day, Bake Caroline, thank you, and the pounder has been strengthening. Oh their news checking Sterling right now at one point one to oh four against the dollar elsewhere and markets today cakes. After start of the fourth quarter, us actually coming up there the ridge straight quarter of losses for the first time since two thousand nine for the NASDAC one hundred. It's the longest of losing streak

in twenty years. David Bianco, as Chief Investment Officer at d w S Group. This is a bear market, So I think a key question is is this the beginning of a high inflationary period where we're near the end of a high inflationary period. If you think we're near the end of a high inflationary period, the worst is largely behind and the market shouldn't go too much further down.

But that's the key question. D w S Chief investment Officer David Bianco made the comments on Bloomberg's Wall Street Week Catch the program every weekend on Bloomberg Radio and television. We Karen, one of Wall Street's biggest bears is staying bearish. Morgan Stanley chief US equity strategist Mike Wilson says a FED pivot is becoming likely as money supply falls, but

he says that move won't allay concerns about earnings. Wilson sees an eventual low for the SMP five hundred coming later this year early next at the three thousand to thirty four hundred point level. Well Goldman Sachs is also staying bearish, and athan with a call that more stock selling will take place next year. Goldman strategists say households and foreigners could each sell Us stock valued at a hundred billion dollars. In corporate news this morning, Karen, we're

watching shares of Credit Sweee hit a record low. Right now, They're down nearly eight and a half percent. A memo sent by CEO ol Rick Kerner's raising concerns over the health of the Swiss bank. We get more from Bloomberg's Charlie Wells in London coroner basically said the banks at a critical moment. He reiterated, you know the importance of not confusing share price, which we've been hearing a lot

about this morning, with performance and capital strength. And the reason why this generated so much attention was because it was the second straight memo that the CEO had to send um on a Friday in two weeks, and it also, interestingly over the weekend, generated a lot of discussion on online boards like Reddit and Twitter. Bloomberg's Charlie Wells says Credit Sweez is currently finalizing turnaround plans. Those will likely include sweeping changes to its investment bank and thousands of

jobs over the coming years. Well Nathan shares a Tesla are down four points seven percent in early trading. The company delivered a record number of vehicles in the last quarter, but the results still missed estimates and we get more from Bloomberg's Denis Fella Greeny Tesla delivering more than three three thousand vehicles, about four percent fewer than expected, possibly on supply chain issues. The expenses to get customers actual

cars in their hands have been astronomical. Danna I've s, managing director at web BUSHSLA, has started to balance that and BASICUI be fine with ultimate delivers that could push quarter quarters. I've says that means watch this quarter very closely. Elon Musk tweeting he hopes to smooth out end of quarter Russia's for customers sakes. Denise Spella, Greeny Bloomberg day break, Okay, Dennise,

thank you. Oil is on the rise this morning the air indications OPEC could slash production by more than a million barrels a day to revive plunging prices. The group meets this Wednesday in Vienna. Checking rice is now Nimex s crwds hired by four and a half percent of three dollar sixty cents at eighty three oh seven of barrel Brent is up four point three percent at eighty

eight dollars seventy seven cents. Well, Nathan. The big economic event this week comes on Friday, when the US Labor Department issues as monthly payrolls are poor, job growth and likely continued in September even as the overall economic outlook dimmed. We get more from Bloomberg's mini del judas the Federal Reserve is lifting interest rates to pain inflation by applying the breaks the economic growth. Even so, US jobs claims have been running near historic glows, and economist are forecasting

employers hired about a quarter million workers in September. We'll get the data Friday. Looking ahead, the president of the Chicago fet Charles Evans this will take six months for the impact of higher interest rates to be felt in the labor market. Also on this week's data calendar figures on job openings which have been running at his store Kis and he dealt Bloomberg debery. Thanks Vinny. Finally, we

take stock of the damage from Hurricane Ian. It destroyed a outlets number of homes and businesses in Florida, but skirted a key US fertilizer production area. That means the broader US economy was spared. The worst case scenario. Still Ian is set to be one of the top ten costliest storms in the US, with estimates as high as one D twenty billion dollars. You're listening to Bloomberg daybreak in South five oh seven on Wall Street, rain fifty

degrees in Central Park, New Jersey. Transit services suspended on the Note Jersey coastline. It's because of overhead wire problems. Will get the details in traffic shortly. First, Michael bars here with what else is going on in New York and around the world. Good morning, Michael, Good morning Nathan. A wig for a murdered f d n Y E M S Lieutenant will take place today and tomorrow. Family, friends and co workers have been gathering to remember Alison

Russo Elling. She was stabbed to death in an unprovoked attack in the story of Queen's Last Week. The wake for Russo Elling, who was sixty one, will take place in Commack. Police arrested thirty four year old Peter this Philosophilis,

who has a history of mental illness. Search and rescue efforts are still underway in parts of Florida in the wake of Hurricane in Over the weekend, responders took to the air, grabbing people from rooftops and evacuating Barrier Island residents by boat after Ian wiped away roads leading to the mainland. Florida Governor Ron De Santis said teams are conducting sweeps and areas hit hardest by the storm. There's more urban search and rescue teams in Florida now than

in any one place in American history since September eleven. Meanwhile, President Biden will visit Puerto Rico, hit hard by Hurricane Fiona. Brazilian President Jayre Bolsenaaro fought his way to a runoff election against his leftist challenger, former President Luis and Natio Lula da Silva. Lula got forty eight percent while Bolsinoro received forty three percent. However, neither one got the simple

majority needed for victory. These college students saying that they voted for Lula with the Tulula to Brazil the woods in the future, bus is opposed to democracy. The candidates will face each other in the high stakes October thirty presidential runoff. It's a big defeat from Moscow. In Ukraine. Last week, Russian President Vladimir Putin used a sham referendum to declare four areas of Ukraine as part of Russia. But one of those regions, Lemon, almost immediately fell to

Ukrainian forces. I meanwhile, Vladimir Putin is doomed to lose the war in Ukraine. That's from former CIA director David Petrayas. The retired four star general says, Russia's army has quote shambolock. He announced the annexation, and he's already lost a really critical element in that, a critical city that would have been a very key supply hub had they been able to go farther. And that's just going to continue. He's

going to continue to lose on the battlefield. Petrayas spoke on ABC's This Week, which can be heard Sundays on Bloomberg. Justice Catangi Brown Jackson will make her debut as the Supreme Court's new term kicks off today. Global News twenty four hours a day on airand home. Bloomberg Quick Take powered by more journalists, analysts more than a hundred twenty countries.

Michael bar this is Bloomberg, Navid. Thanks Michael five ten on Wall Street time for the Bloomberg Sports I'll tell you what John Stenshown, Thanks, Nathan Mets has been a first place team virtually the entire season, but after a nightmare weekend in Atlanta, they're almost certainly going to finish second. Praise one again Dansby Swanson home for the third straight game, x met Travis Darnel at two one single. Atlanta won five three to sweep the series. The Braves lead by

two and own the tiebreaker. A win for them tonight clinches the division. The Mets thought they'd be the NLS two seed, instead looks like the four and headed for a best of three wild cards series this weekend with San Diego or Philadelphia for the right to then face the Dodgers. All of the games in the wild Card series would be at City Field of Stadium. Yankees had just four hits lost to Baltimore three to one. Aaron Judge struck out three times. He'll try to surpass Roger

Marris in Texas. Jets finished their four game tour of the a f C North two losses, but also two thrillion wins. They had that one in Cleveland and in Pittsburgh. They trailed midway through the fourth quarter by ten points. Zach Wilson a touchdown past to Corey Davis and then after a Jets interception of Steelers rookie QB Kenny Pig and Breece Hall scored with sixteen seconds left. The Jets one twenty four to twenty. Giants and Bears and met

live only two touchdowns scored all day. Both played the same Guykake Jones just gonna poot like and rolling left. He's gonna want it again. Kills to the five. Killants gives in touchdown Giants Daniel Jones in a twelve yard run mother They get foot around the left side, his second rushing touchdown of the game, and the Giants have wind their lead to thirty six fan The College Giants went on to win twenty to twelve, though Jones left with an ankle injuring his backup Tyrod Taylor left with

a concussion. Giants first three and one start since two thousand eleven. John stash Award Boomberg Sports Nathan Thanks john SMP futures down nine points, right now down, futures up two points. Snass that future is lower by seventy eight points. This is Bloomberg. Bloomberg eleven three oh weather rain today with a high near sixty degrees. Occasional rain tomorrow with high steer sixty. The showers should end Wednesday low sixties for afternoon highs right now showers and fifty degrees in

Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot com, the Bloomberg Business Out and at Bloomberg Quick Tape. This is a Bloomberg Business Flash and I'm Karen Moscow. This updates brought to you by se I Imagine your ousset management firms operational infrastructure

as a competitive advantage. Let us see I show you how at se i C dot com slash I m S Global stocks are falling to a two year low, while U S stock index futures struggle for direction a bit amid concerned hawkish policies by global central banks, Well sparker Is says in an earnings contraction, Pound rising as the UK WHI drew a plan to abolish the top income tax rate, and Credit Suite Group shares hitting record

lows as traders continue to speculate about its future. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SNP futures down five points down futures higher up thirty six and now as dat futures they're falling down about sixties seven decks. In Germany's down one point one percent. Ten year treasury of ten thirty seconds, you'll three point seven eight percent yield on the two year

four point one nine percent. Nim X screwed oil is up four percent of three dollars twenty one cents at eighty two dollars seventy cents of barrel Comex gold is down a tenth of a per cent or two dollars ten cents at sixteen sixty nine nine ounce the euro point nine seven nine five against the dollar, British pound one point one two oh one and the N one forty five point oh nine. And look at a bitcoin down a third of u percent at nineteen thousand, one

hundred sixty dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Arpel. Good morning, Good morning here, and President Joe Biden will announce more than sixty million dollars in funding to strengthen Porto Rico's resilience to flooding when he visits the island to observe recovery efforts from the devastation left by Hurricane Fiona. The President and First Lady will fly to Porto Rico today.

The Supreme Court begins a new term today. There will be day one for Judge Catanji Brown Jackson. In the NFL, the Giants and Jets one. The Patriots, Commanders and Ravens lost. The forty Niners play the Rams. Tonight. In baseball, the Yankees lost to the Orioles three one. The Mets lost to the Braves five three. Atlanta swept the series and knock the Mets out of the lead. In the NL East, the Red Sox and Nationals lost the A's and Giants one.

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 Barr, this is Bloomberg. Nathan Okay, Michael, thank you for coming up to five twenty on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. As we get the fourth quarters started here, we are very pleased to be joined this morning by Lori Calvacina, head of

US Equity Strategy at RBC Capital Markets. Laurie, it's great to speak with you as always, And stock investors are looking for a winning quarter sometime this year, haven't gotten one yet. I think they'll get one in the fourth It would be nice. Thanks for having me as always. And look, I think that we're at a very sort pivotal moment for stock. We've come down, we've tested, retested the June love UM. It's interesting as I talked to investors last week, I think there is some hope for

a fourth quarter bounce back. UM. And we are certainly are starting to see that valuations are looking interesting again in the market. UM. But I do think that we should expect folattle conditions to endure for a bit longer. Where specifically are you seeing interesting valuations, Well, we see

it in the broader market generally. If you look at where we closed on Friday against our EPs number for next year, we've actually gone down right back in line with the long term average the word about sixteen point nine times long term average about sixteen point eight. And when you dig down deeper and look within the S and P five hundreds and look specifically at the different sectors.

I would tell you areas like financials still looks very compelling on our work, UM consumer to strectionaries looking interesting. There are obviously fundamental challenges. Their energy stacks still look very compelling materials. And then when we step back from the sector, small caps are actually making a very strong valuation case right now, so we've actually put an overweight

in place. There is there still concern that with FED tightening and central bank tightening more broadly around the world, that that could eat in two earnings. So it's interesting if you look at the bottom up consensus for earnings, the numbers are still I think around two two, And if you're just sort of baking together what south side analysts are anticipating in our number for next year is actually at to twelve. This year, we're also below consensus

at to eighteen. I think the consensus still around to So I think at this point it's really about the economic damage that sparked by the Fed policies um that the street is struggling to put in place. UM, we've already kind of baked that into our model at this point, and so we have earnings growth going nowhere for a couple of years to eleven was last year's number, and we think it's gonna end up being some of the sixteen periods where laradis just chop around for a while,

it don't really make any progress. Both earnings do stick to that forecast and we don't see much movement there. If we do get a bounce in the fourth quarter, is that just gonna be a short lived bouncer. Where's the momentum? Do you think? We know? It's interesting. We went back and we we put this note doubt over

the weekend. We went back and looked at sort of prior periods of normalization coming out of the financial crisis, coming out of the tech bubble, really kind of the O two oh three UM and eleven periods, and you

did see some pretty vicious rallies and give backs. UM. So you know, if we were to follow just the two thousand two paths and actually there's been a seventy two percent correlation between markets this year and markets back in two thousand and two, UM, we would see sort of a fierce work que rally and then we would give a lot of it back in the first quarter. Retest belows again, we'll see if it plays out that way. But I would tell you one of the catalyst people

have been looking for is the mid term elections. We do tend to see stocks bottom about a month before that event, and we're coming up right on that time horizon. Now, interesting, what kind of catalyst could this week's jobs report be? What kind of catalyst could it be for the Fed? UM?

You know, it's interesting with jobs, I think that markets are already pricing in a pretty big pickup in jobless claims if we think about the Thursday release UM and in terms of jobless claims, I'm not going to try to predict what how the set is going to react to anyone given report, but I will tell you that when you think about markets themselves and how they may react, we have historically seeing that small caps tend to outperform large caps UM in the middle of recessions once the

unemployment rate starts to pick up. And that's just based on the idea that a lot of pain in the labor market is pre vaked into that part of the market UM, and then when one sort of the deterioration is seen, UM, we can get some relief in the small cap stocks. So we'll be looking for a start of the market reactions to whatever moves comes out on Friday. Just about thirty seconds left here, Laurie, But are you looking for a pivot from the FED to slower interest

rate hikes? If so, what would spark it? So? I think that for any said pivot to come through, and they seem determined to convince the market that there isn't one coming um, I think you'd have to see some clear deterioration or moderation in the inflation data, and I think that's what everyone's waited for. We continue to hear clients talk about that, and I would tell you if I talked to investors, I don't think they've given us hope on that, Fido either, So great to speak with you, Lori,

Thanks again for doing this. Lori Calvacina, head of US equity strategy at RBC Capital Markets. Looking at the market this morning, you sort of looking for direction here, with Nasdaq futures leading declines after the disappointing results from Tesla in terms of third quarter deliveries. NASDAC futures are down a half percent right now, down fifty two points. S ANDP future is a little changed and DAL futures are higher by eighty two points. The tenure treasuries up eleven

thirty seconds, yield three point seven eight percent. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather mostly cloudy for the most part. Today we'll get up to your sixty degrees occasional rain. Tomorrow breezy, pioneer sixty showers and Wednesday. Right now, we're at fifty degrees in Central Park. Broadcasting live from the Bloomberg Interactive Broker's studio in New York.

Bloomberg E living free to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine six to the country, Sirius XM Chado one ninet and around the globe the Bloomberg Business and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow. We are just about four hours away from the open of you West Trading. Let's get you up to date on

the news. You need to know what this shower. We begin with an about face out of the UK Prime Minister Liz Trust and her administration are dropping a controversial tax cut. Chancellor Quasi Quartan had come under fire for cutting taxes on the UK's highest earners. Bloomberg's Lizzie Burden has details from the Tory party's conference in Birmingham. He said that the rate cut was becoming a huge distraction

from a set of strong policies. Of course, the government had also announced this massive energy bailout, so it was desperately trying to cling back to the political credit for that. He was asked what changed, He said, we listened to people, We get it. He was asked as he considered resigning, He said not at all. The Prime Minister had thrown him under a bus yesterday, blamed him for this top rate of tax cut. So the question now is how

much of the rest of the package can survive. Bloomberg's Lizzie Burden says the move may cool the political backlash, but they're still concerned for markets and the pound and checking sterling now it's at one point one to oh one against the dollar. Meantime, Karen today kicks off the start of the fourth quarter for markets. US stocks are coming off their third straight quarter of losses for the first time since two thousand nine. LPL financials Quincy Crosby says,

there are still plenty of risks. We've seen the volatility index climb the VIX because it's more uncertainty, uncertainty regarding how does the set actually bring us to price stability, which out as the proverbial breaking something. Also, you know, we're going into third quarter earning season and the questions are, what are those companies saying not only their bottom line but their margins, but what's the guidance? Quincy Crosby with LPL Financial things stocks may go lower from here until

they find a level that has discounted economic headwinds. But when in all Street's biggest bears, Nathan is staying bearish. Morgan Stanley chief US equity strategist Mike Wilson said of FED pivot is becoming likely as money supply falls, but still that move won't a lake concerns about earnings. He sees a bottom for the SNP five as low three thousand. In Banking News, Karen shares of credit suites are down

nearly seven and a half percent. The Swiss banks finalizing plans that will likely see sweeping changes and could include cutting thousands of jobs over a number of years. Oil on the rise this morning, Nathan. There are indications at OPEC Plus may slash production by more than a million barrels a day to revive plunging prices. The group meets Wednesday in Vienna and checking prices now. Nime X scrude

oil is up about four percent. It's at eighty two dollars fifty nine cents of barrel, and Brent is at eighty eight dollars thirty two cents. Straight ahead your latest local headlines, plus to check of sports. This is Bloomberg. Thanks Hearing five thirty three on Wall Street, forty nine degrees in Central Park. Still dealing with a service suspension on New Jersey Transits North Jersey Coastline. Details coming up in traffic. First Michael Barr with what else is going

on in New York and around the world. Michael Nathan, thank you, sir, Awake for a murdered f D n Y E M S. Lieutenant will take place today and tomorrow. Family, friends and co workers have been gathering to remember Alison Russo Elling. She was stabbed to death in an unprovoked attack and the story of Queen's last week. The wait for Russo Elling, who is sixte will take place in

com Russo Ellen's funeral is Wednesday. In Brookville, police arrested thirty four year old Peter Zissopolis, who has a history of mental illness. More than a thousand search and rescue workers are performing operations across Florida as some people remain stranded by Hurricanean. A thousand National Guard members were sent to Florida's Barrier Islands for more search and rescue efforts. Florida Governor Randa Santis, you look at for Myers Beach

and you see homes obliterated. You know that was obliterated because you had almost a Cat five storm touch landfall there, Governor to Santa says Ian was a five hundred year event. It's a big defeat from Moscow. In Ukraine, last week, Russian leader of Vladimir Putin used a sham referendum to declare four areas of Ukraine as part of Russia, but one of those regions almost immediately fell to Ukrainian forces over the weekend. The strategic city of Lamon in Ukraine's

northeast was taken back. Former CIA director David Petrea says Russia's army is no match for Ukraine's and Putin at some point is going to need to come to the negotiating table to him the war. No amount of shambolic mobilization, which is the only way to describe it, no amount of annexation, no amount of even veiled nuclear threats can actually get him out of this particular situation. The retired four star general spoke on ABC's This Week, which can

be heard Sundays on Bloomberg. Brazilian President Johannira Bolsinaro fought his way through a runoff election against Louis Gnatio Lula da Silva. Both fell short of the first round win, which means there will be a runoff on October. According to Brazil's electoral court. Lula took to bull Cinaros forty three Global News twenty four hours a day on airand on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty countries. Michael

Barr and this is Bloomberg, Nathan, Thanks Michael. On Wall Street, Time for the Bloomberg Sports Update with John Stetshow all right, Nathan. At one point this season, the Mets were in first place by ten and a half games, but the Braves Captain Winning kept getting closer. In Atlanta just configured the three game sweep and it's the Braves who will almost certainly win the NL East. Their magic number is one.

Met did not get good starting pitching. Jacob mc graham gave up three runs Max Shen's or four and last night Chris Bassett State two a three one lead after Mad Homer's by Daniel vogel Back and Jack McNeil couldn't finish the third inning the Braves one five to three. It's going to make for a tougher postseason road that would start with the best of three wild Cards series this weekend at City Field. Yankees last regular season home

game three one lost to Baltimore. They close it out in Texas four games for Aaron Judge to try and hit home run number sixty two. Jetson Pittsburgh. First game for Zack Wilson back from the knee injury, and he was part of an early Jet score take the Jets sweep picks on. It'll be a strong for Barrios to Zack Wilson for the touchdown Lazzle Castle for the CHURIOSESPN New York colleg Jets were up ten, then down ten. They rallied scored with sixteen seconds left. Beat the Steelers twenty,

only their second win in Pittsburgh in team history. Giants had their first three and one starts in two thousand eleven. They won the Super Bowl that year, beat the Bears at met Life twelve. Daniel Jones's two first half teen runs we're the only touchdowns of the game. Giants played this Sunday in London. We'll see who their QB will be. Jones Purtas ankle yesterday and the backup Tyrod Taylor's suffered

at from kussion. John Stash Howard Bloomberg Sports Nap. Thanks John, It's five thirty seven on Wall Street time for the Tri State Business Report. Who's Bloomberg Scott Carr. Rent increases are in effect now for the approximate two million living in New York City's rent stabilized departments. Those who renew their leases between now and September thirty next year will be subject to increases of three and a quarter percent for one year leases and five percent for two year leases.

The city's rent Guidelines Board to prove the increase back in June. New Jersey's Economic Development Authority says it's Small Business Improvement Grant program has awarded close to thirteen million dollars to more than five hundred gardens state enterprises since it launched in February. The funding comes from the state's Main Street Recovery program, offering small businesses up to fifty

thou dollars for covering general operating costs. Despite rising rents, Hartford, Connecticut, has been named one of the seven most affordable cities for multi family investing by Crexy, an online commercial real estate marketplace. They say Hartford saw ninety seven million dollars in deals in just the first half of this year. That's the Bloomberg Tri State Business Report. I'm Scott Carr.

Thanks Scott eight on Wall Street. Bloomberg Radio is on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three hundred affiliate radio stations around the world. I'm Steve poliscon tent Ted Winds in New York. We're talking about how Manhattan now has more EV charging sites than gas stations. Um Corney's Dona Hollan ktr H in Houston. Shoppers should

see big retail discounts ahead on excess merchandise. I'm Gina Servetti and for w c c O in Minneapolis, I'm reporting that Target joins a list of companies with the majority of its leadership comprised of directors who are members of underrepresented groups. I'm Stephen Carol and Bloomberg D A B. TOD to the Radio and London. We've been reporting on the you turned by the governments over its plans to scroup the top rate of income tax. I'm Scott Carr on w d c H in Washington. I'm reporting a

new meta tech accelerator is getting a big boost. And those are some of the stories our twentyd Bloomberg journalists and analysts are 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. Those disheartened by the election campaign run by Georgia Maloney may think that the best thing

about Italy's incoming government will be its likely transience. Hers will be the country's seventieth government since World War Two. But it would be mistaken to conclude that Italian leaders don't matter. To the contrary, Europe needs is stable Italy capable of tackling long festering economic and social problems. But if Maloney wants to achieve anything while in office, she'll have to abandon the retrograde rhetoric that characterized her campaign.

The sooner she moves beyond provocations and focuses on delivering stable government and growth, the better her chances of staying relevant and in office. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash opinion or O P 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 O P I n go.

SMP futures little changed, DAL futures up seventy seven points, NASTACK futures are lower by forty five points, and the tenure Treasury is up eleven thirty seconds. Yield three point seven eight per cent. We look ahead to the fourth quarter next with Charlotte Ryland, co head of Investments at c c l A Investment Management. This is Bloomberg Bloomberg eleven three oh weather mostly cloudy, breezy, chance for some showers today with a high near sixty degrees, occasional rain.

Tomorrow higher sixty once again showers, and Wednesday we'll get up to the low sixties. Right now forty nine in Central Park Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Quick Tape, He's a Bloomberg business lash and I'm Cara a Moscow. This updates brought to you by s ci Yes said managers don't get results that are off the charts when their solutions are off the shelf.

Learn how sci is operating platform can turn infrastructur into a competitive advantage at sc i C dot Com. Slash Tech Global stocks falling to a two year low while U stock index futures are struggling for direction. This comes amo concerned hawkish policies by global central banks will spark a recession and earnings contraction and the pound is rising as the UK with drew a plan to abolish the

top income tax rate. We checked the markets every fifteen minutes throughout the trading day on bloomberg S and p Future is a little change down, futures up sixty NASDAG futures down fifty two. The decks in Germany is down nine tenths of upper set ten year treasury up twelve thirty seconds. He'll three point seven seven percent. They yield

on the two year four point one eight percent. Nine max Screwed oil is up four percent, up three dollars twenty one cents at eighty two dollars seventy one cents a barrel. Co makes goal down a quarter percent or four dollars twenty cents at sixty and sixty seven ninety an ounce. The euro point nine five eight against the dollar, British pound one point one one seven six and the yen one forty five point on five. Bitcoin is down

half percent at nine. That's a Bloomberg business flash. Now here's Michael bar with more on what's going on around the world. Michael, thank you very much, Karen. He will be right leaning. Brazilian President John ere Bolsonaro against his leftist challenger Luis Ignatio Lula Da Silva and in October thirty runoff election yesterday, neither candidate got a simple majority to win in the first round. Spante Pambo is the Nobel Prize winner in Physiology or Medicine on Human evolution research.

In the NFL, the Giants and Jets won the Patriots, Commanders and Ravens lost play the Rams tonight in baseball, and the Yankees lost to the Orioles three one. The Mets lost to the Braves five three. Atlanta swept the series and knocked the Mets out of the lead. In the NL East, the Red Sox and Nationals lost. The A's and Giants won. Global news twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenties up and under journalist analyist more than a

hundred twenty countries. Michael Barr, this is Bloomberg Navan. Okay, Michael. Thanks, It's five forty nine on Wall Street Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg day Break. Let's bring in our next guest now, Charlotte Ryland. It's co head of Investments at c C l A Investment Management, Charlotte, It's great to speak with you on the first day of the fourth quarter as we wait for a winning quarter for stocks. Do you think this market is close

to capitulation? Uh? Well, I think it's going to completely depend on where we get to with the earning season. And we've also had some sort of big, high profile profit warnings FedEx, Nike coming through already. Um, and the market is is pretty worried about, you know, what the direction of earning. So, I mean, if it comes through that are actually companies hold up, then that could be the big surprise. But I'm afraid I'm probably not that

confident that that's going to be the case. What makes you say that, Well, I mean I think you know, you've got a consumer which she's clearly struggling with with rising borrowing costs. You've got you know, a lot of the impact of that is delayed. It octates a while to come through into numbers. Um. You know, clearly companies are struggling, whether it be in terms of currencies, whether it be in terms of more material costs which have

moved up so high. Um. So I think I think it's going to continue to be quite a difficult situation. You're certainly going to see the consumer, particularly particularly in Europe, is going to be struggling. Are you looking for further earnings revisions to the downside then as we get closer to earning season, Yeah, I mean, I think I think that's probably what we would expect. I mean, you know, if you look at sort of typical recessions, you've probably

got you know, that can come down from earnings. Whether this will be entirely that, I don't know, because you've clearly got positive pricing this time, even if volumes are weaker, so it might not be quite as severe as that. But I think you know, certainly, you having had quite an optimistic earnings pitcher for most of the year party hold up by you know, your companies, that's beginning to turn and we'd explate that sort of continue off into the second half of the year as we see markets

continue to fall. What does that mean for central banks? Could we start to see the market push the head and other central banks toward that pivot that many investors have been looking forward to at least slower interest rate HIGs. Yeah, I mean, I think we can sort of look back for you know, twenty eighteen period and say, well, you know, central banks blinked and stuff that from from the tightening. But I think we're in a very different situation now.

We're now in one where you've got inflation still running at sort of eight cent plus um, you know, and we haven't really seen that begin to turn yet. So I think while that remains a problem, while we've still got very highly wage growth and the unemployment picture being you know, such a low unemployment, such a tight labor market, I think it's gonna be very difficult central banks to

step away. I mean, clear we saw the bank having done stepping last week when we're having something of a crisis mark some of the UK penstrom plants because they're hedging it of course. So I think genteral banks will call markets if they have to. But are they going to reverse course. I'm not sure that they are. What's the risk that central banks go too far? Then? If employment does continue to stay at these sort of high levels that we're seeing, is there a risk of a

policy was taked by the Fed? Um, Yes, there is. I mean I think you know, markets are sort of pricing in now sort of four or five centers as being sort of terminal rates uh interest rate hikes. I mean certainly we've seen in past emflacing pictures, you know, rates much higher than that, So we're certainly not pricing

that in yet. But you know, clue the implications of that in terms of the consuming terms of companies, particularly those who have got more stretched balance sheets, those will be going to come through somewhat later than the rate hikes. So I think that's definitely someone's gonna keep watching them. Got about thirty seconds left here. Do you see opportunity in this market given the bearish sentiment we've been seeing over the last several months here, Yeah, absolutely we do.

I mean I think you know, you've seen a number of companies really pulled back. I mean things like like Adobe for example. You know clearly there's some some worries about that further acquisition, but we think that looks extremely cheap. And also some of the things within Europe it's like like an Estial, Locks Artica or Perno for example. I mean, these aren't companies which are being particularly hit by by the macro situations, and I'm looking to value to us.

Thank you, I really appreciate you coming on with us this morning. Charlotte Ryland is co head of Investments at c c l A Investment Management. Karen Verry, Nathan, thank you. It is five fifty three on Wall Street. Time for the Bloomberg The Law Report. It has brought to you by American Arbitration Association. Business disputes are inevitable, resolve faster with the American Arbitration Association, the global leader in alternative dispute resolution for over ninety years. More at a d

R dot org. Now, let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, the Food and Drug Administration plans to allow the importation of certain infant formula products at least through October of twenty five. The National Labor Relations Board ruled the Team Mobile unlawfully disciplined a worker for sending a union related email, but the board set employers do have the right to restrict

the use of workers email for non work issues. A Pizza Hut for Anchise, facing a proposed class action in Illinois over the collection of employee biometric information, has moved the state case to federal port. Bloomberg Law Everything you need, all on one legal research platform, including guidance Analysis and Bloomberg Market Intelligence. Find out more at Bloomberg law dot com. All right, Jeff, thank you. Now another legal story we're watching.

The new Supreme Court term starts today and this week the Court will hear an important case involving redistricting and the new districts being drawn around the country to govern the next decades elections. This case involves Alabama's congressional maps drawn by the Republican legislature, which packed black voters into

one of seven districts in the state. For more, Bloomberg student Grosso speaks to former United States Solicitor General Gregory gar a partner at Latham and Watkins Meryl v. Milligan. Alabama's congressional map about tent of Alabama's residents are act, but there's only one majority black district out of seven in the state. So this is another election case. And the question in this case is vote dilution under the

Voting Rights Act. And the allegation in this case is that the legislature has impermissibly diluted the black vote by splitting up black communities and drawing the congressional districts. And this is obviously an important and recurring issue and drawing districts across the country, and in some respects it overlaps with the admissions cases, and that you know, all of these cases involves questions of how race can be used

by government decision makers. And the Voting Rights Act is an area that this Court has been fairly active in going back the past decade, and with the newly constituted court their number of recent justices who have come onto the Court before the last big voting rights case, this is an opportunity for the Court to re examine its precedents in this area and consider the proper role of race in a judicating a a solution case under the

Voting Rights Act. So in February, the Court, in the five to four vote, put a hold on the lower courts order which had required Alabama to redraw the NAP and in her descent, Justice Kagan said that accepting Alabama's contentions would rewrite decades of this Court's precedent about the Voting Rights Act. I mean, if they did that, that wouldn't be particularly surprising considering what they've done to the Voting Rights Act even before the addition of the three

Trump appointees. I mean, that's certainly true. If you go back to the Shelby County case, that was one of the more contentious cases that the Court has occurred and decided in the last ten years or so. And these are very divisive cases in which justices have strongly held views. So it won't be surprising if there are two different camps on this issue as to how the case comes out. And you know what that means for the Section two doctor going forward. We'll just have to wait and see.

And as former United States Solicitor General Gregory gar 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. Attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b Law Go. Futures this morning,

S and P futures anyway, are little change. DAL futures are higher up seventy eight points and now SDAYG futures lower down thirty eight. Ten year treasury up eleven thirty seconds. You know, three points seven eight percent, the yield on the two year four point one nine per cent, and the British pound one point four against the dollar. Still ahead on Bloomberg Daybreak and check on the business headlines and all the news you need to start your day. This is Bloomberg.