Bloomberg Daybreak: October 4, 2022 - Hour 1 (Radio)

a humanitarian relief center intended for asylum seekers and queens. Plus, North Korea launches a missile test over Japan. I'm Michael bar More Ahead, I'm John Stashower and sports A Yankee flirted with a no hitter to win at Texas one.

That I Football, the forty nine beat the Rams. That's all training ahead on Bloomberg Daybreak on Bloomberg eleven three on New York, Bloomberg 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. And Good Morning. I'm Karin Moscow. I'm Nathan Hager. Bloomberg Daybreak is brought to you by se I. Imagine your asset

management firms. Operational infrastructure is a competitive advantage. Let s e I show you how at s e I C dot Com slash I m S and US Future is on the rise this morning five o one on Wall Street. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SMP Future is a fifty six points to down futures up three hundred seventy one and NASDAG futures up two hundred twelve. And attend your treasury of fourteen

thirty seconds, you have three point five eight percent. Nathan here in. This morning's gain in the futures follows the best day for US stocks in two months. The SMP five D index closed up two point six percent. Week manufacturing data helps spur the rally. Some see it as a signed the Fed could soften its approach to rate hikes.

Ab Dish Ponde's chief investment officer at Center Stone, the fundamentals, as far as the ound work for a new bolt market are there, you just don't have evaluations are quite there yet, and he certainly don't want the catalyst yet. But I don't see I don't see, you know, a huge collapse or a calamity or anything like that. Center Stones Abonde thinks core inflation is already peaked, hitting a

high point in February. Despite some optimism that the Fed may turn in Devish Nathan, central bank officials continue to bang the drum for more rate hikes. New York Fed President John Williams says tightening still has a significant way to go. He's one of thigh FED officials speaking at events today here at any research president and you're Denny says the Fed is should hike one more time and

then end it's tightening cycle. I'm totally stumped, mystified surprise that Fed officials don't seen too acknowledge that just focusing on the FED funds rate as part of the monetary tightening cycle is a mistake when you also have q T two and you have a soaring dollar. These are very restrictive monetary developments. Here, it didn't Research president here here Danny says the Fed's final rate hikes should be next month. Well, stocks are rolling across the globe this morning.

Karen in Asia overnight, equities posted their biggest daily advanced since March. Let's get the recap from Bloomberg's Juliette Sally in Singapore. Good morning, Juliet, Good morning Nathan and Karen. Australia's benchmark jumped as much as three point six percent, the most in more than two years, after the country's central Bank delivered a smaller than expected interest rate hike, while three year bond yields slumped the most since the rb A cut rates heading into the global financial crisis

in two thousand and eight. Japanese stock surge, with the benchmark topics rising around three percent. Liquidity in the region was relatively thin, with China and Hong Kong markets closed for a holiday. In Singapore. Juliette Sally Bloomberg Daybreak A right, Juliet, thank you. We are also seeing a rally in Europe this morning, and we go to London and get the latest live from Bloomberg's U and Parts. Good morning, U

and good morning Kanathan. European stocks in the green for a third day to day the benchmark stocks under touching its biggest gain since June. Travel all technology and retail companies posting some of the biggest jumps today. A quick look at the GRR function on the Bloomberg shows that all twenty sectors are lovely shade of green today, and Credit Swiss also gained this morning, a day after those wild durations in the troubled lenders share price in London.

I'm your in parts bog Daybreak, All right, you in thanks. Let's stay in the UK now where it is the third day of the Conservative Party's conference. Questions are swirling over whether Prime Minister Liz Trust can rebound from the political crisis created by last week's budget announcement. Let's go to Birmingham, England to get the latest from the conference with Bloomberg day Break. You're a banker, Caroline Hepgurg, Good morning, Caroline,

Good morning, Nathan Karen. Some of Liz Trust's top team have been telling Bloomberg that her project is dead in the water already. A humiliating u turn on the top rate of tax from the Chancellor Quasi Quatte has led her own party to question her leadership, which puts her agenda in jeopardy. The Chancellor has promised to bring forwards details of his fiscal plan, and the independent watchdogs assessment

so that it comes sly. But one former cabinet minister who spoke to Bluebog predicted the Prime Minister would be gone within a year. Now. The question is how the government can afford the tax cuts that it has promised, and will the poorest in society see their wealthfare payments sacrifice in order to balance the books. In Birmingham, I'm Carolan hed carefferably big daybreak, All right, Caroline, thank you. Back here in the US, US China relations are back

in focus. Bloomberg News has learned the White House plans to announce the new restrictions on Beijing's access to U S semiconductor technology. Details now from Bloomberg's Amy Morris in our news room in Washington. Members of Congress have been pushing the White House to tighten controls around semiconductor equipment

of China. Now, sources tell Bloomberg News the Commerce Department will roll out a package of rules this week, including formalizing restrictions on technology to produce chips that are designated as fourteen nanometer or better. It will prohibit the sale of tools for logic and memory chip production in China and restrict access to chips used in SuperComp puting and artificial intelligence. In Washington, I maybe Morris Bloomberg Daybreak, Amy thanks. As the war in Ukraine rages on, Elon Musk is

weighing in. Recent Twitter posts have the Testa CEO drawing the wrath of Ukrainians, including President Vladimir's Lensky. Bloomberg's Charlie Pellet explains those post surge Ukraine to seek a negotiated solution to the invasion by Russia and to seed Crimea for good Must also launched a Twitter poll asking citizens of occupied areas of eastern Ukraine plus Crimea to decide

if they want to live in Russia or Ukraine. The survey comes as Ukraine, Europe, and the US denounced President Vladimir Putin's move to annex four regions and declare them Russian territory. In New York, Charlie Pellet Bloomberg Daybreak, All right, Charlie, thank you. As for Elon Musk's company, Tesla plunge the most in four months yesterday after third quarter deliveries missed estimates, and it looks like investor canthy Wood took that as

a buying opera. Tunity Funds backed by Woods. Arc Investment Management bought more than one hundred two thousand shares of Tesla yesterday and marked the firm's first purchase of Tesla since mid June. And we're watching Tesla this morning, shares around more than three in early trading. And are straight ahead your latest local headlines plus a check of sports. This is Bloomberg. It's carried its five oh seven on

Wall Street, rain forty five degrees in Central Park. Got a crash northbound West Side Highway to hundred fifty Details coming up in traffic. First Michael Barr with what else is going on in New York and around the world. Morning Michael, Good Morning Nathan. New York City is relocating a humanitarian relief center intended for asylum seekers bust stuff from Texas and southern border states. The tenn City and Orchard Beach has become a magnet for anti immigration protests

and for people who are concerned about the migrants. The city plans the house at Fat Facility. New York Mayor Eric Adams says the city is exploring solutions for the incoming asylum seekers. We are not want to be afraid to try different things to solve these unprecedented um problems that we're facing in the city. Mayor Adams says the migrants will be sent to Randall's Island after concerns about

flooding issues and Orchard Beach. At least sixteen thousand asylum seekers so far for the last couple of months have been busted up, primarily from Texas. North Korea has fired a ballistic missile over Japan for the first time in five years, forcing Japan to issue evacuation notices and suspend trains during the flight of the nuclear capable weapon that could reach the U. S. Territory of Guam and beyond. The US said it strongly condemns North Korea's dangerous and

reckless decision. President Biden and First Lady Jill Biden tour the Puerto Rico ravaged area by Hurricane Fiona. The President offered reassurance the federal government will help the U. S. Territory rebuild. We're gonna make sure you get every single dollar promise. I'm to term it help Puerto Rico bill faster than in the past and stronger and better prepared for the future. Tomorrow, President Biden plans to visit Florida,

hit by Hurricane Ian. Florida Governor RHND De Santists pushed back when asked about evacuation measures in Lee County ahead of Ian. County officials have come unto question for ordering evacuations too late after Ian storm track made a late turn south for a more direct hit. Stop stop stop. Okay, it's been this has been dealt with. The Lee County has explained what they did. They went through that. Governor De Santists later said the state will, of course look

over the evacuations. More than one hundred people have been killed from Ian. A half a million residents remained without power in Florida. Former President Donald Trump suited CNN for defamation, accusing the network of smearing him to undermine a potential run for re election. In Global News twenty four hours a day on air and on Bloomberg Quittank, powered by more than twenty seven hundred journalists and analysts more than a hundred twenty count Michael Barr, this is Bloomberg, NA.

Thank you. Michael's come up to find ten on Wall Streets. Time for the Bloomberg Sports Up. Thank you, Morny John Stenshower. Your morning to the Yankees first series in Arlington, Texas since Corey Kluber through a no hitter there last season. Almost another Yankee note hitter, Luis Severino, would have taken it into the eighth inning, but Aaron Boone took Severino out of the game after ninety four pitches. Rangers broke up the no hitter, but the Yanks one three to one.

Home runs were John Carlos Stanton and Marwin Gonzalez. Not Aaron Judge, He's still at sixty one. Yanks and Rangers play a double header today. The Mets and Nationals played two at City Field after last night's rain out. Atlanta off the suite with the Mets had only four hits lost in Miami for nothing, but the Braves magic number when the n L East is still only one, which would mean to met wild Card series this weekend in City Field, Mets hope that Starling Marte will be able

to play. They have missed his bat since he went out with the broken finger. Tony Lrusa says this retirement is final. He was out of managing for a decade. Wint of the Hall of Fame returned to manage the

White Sox, now stepping down. He's had health issues. Mother Night Football big plays carried the car Gibow Sage bikes a tackle forty Tibow thirty five, twenty five twenty pricks tackle said sis kay nba are the call that fifty seven yard touchdown came after a thirty two yard TV run by Jeff Wilson and before a fifty two yard pick six meat. The Rams nine giants getting ready to fly to London to play Green Bay on Sunday. QB

Daniel Jones's ankle injury said to be improving. John Staff, Bloomberg Sports Nathan, thank you, John SMP futures up forty seven points right now, dal future is surging by three eight points. Nastack futures are higher by a hundred ninety points. British pound one point one three five five strengthening against the dollar as the Conservative Party can friends continues in Birmingham.

We check in live with Bloomberg's Caroline Hecker. Next Bloomberg eleven three oh weather cloudy, occasional showers and rain today. Highs only in the upper fifties. Showers will end tomorrow. We'll get into the low sixties. Low seventies are back by Thursday. Right now, rain forty five degrees, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business Outland at Bloomberg Quick takes

a Bloomberg Business Lash and I'm Karen Moscow. A rally and global markets extending into a second day, lifting US DUNK Index futures and European shares as investors wagers central banks will have to slow the pace of monetary tightening. We check the markets every fifteen minutes throughout the trading day. On Bloomberg s and P futures, they're up about forty seven points. Dow futures have three hundred two and NASDAGG futures have one hundred eighty six decks. In Germany's up

almost two and a half percent. Ten year treasury of fourteen thirty seconds, he had three point five eight percent. They yield on the two year four point one percent.

NIMEX Screwed oil is up a third of upper cent or thirty cents at eighty three dollars nine four cents of barrel co make school that three quarters of a percent or thirteen dollars ten cents at seventeen fifteen ten and ounce the euro point seven against the dollar British found one point one three four two and the yen one forty four point seven seven bitcoin this morning up one point two percent in nineteen thousand, eight hundred dollars.

Today we're watching for reports on factory orders and durable goods orders out of ten o'clock Wall Street time, along with the Jolts jobs report. And that's a Bloomberg business flash. Now here's Munchael Bar with Moore on what's going on around the world. Muncle, good morning, Good morning, Karen. North Korea fired a missile over Japan for the first time in five years, further ratcheting up tensions over Kim John UN's nuclear program and prompting a rare public safety warning

to be issued by Tokyo. The bodies of Russian soldiers were lying in the streets of a key eastern Ukrainian city today. It follows the retreat that marked the latest defeat from Moscow. In baseball, the Yankees one Aaron Judge still at sixty one homers with the time running out, The Red Sox and the A's won, the Orioles and Giants lost. The Meds and Nationals were postponed because of rain, and we'll try to make it up today Monday Night Football.

The forty nine is Beat the Rams nine Global news twenty four hours a day on here and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analyist more than a hundred twenty countries. How Michael Barr, this is Bloomberg. Gave it Okay? Michael. Thanks, It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak. We want to turn down to

the latest in UK politics. Prime Minister Liz Trust has given in on one aspect of her budget, but there may be new points of contention within her own Conservative Party. Let's head right over to the Conservative Party conference down today three in Birmingham, England. Bloomberg day Break. You're a banker, Caroline Hepgert joins us live. So what is the latest, Caroline Nathan, Good morning. Yes, we are building up to Liz Trust is big speech, the Prime Minister's speech tomorrow morning.

But the bone of contention is this Universal Credit. It's a welfare payment worth about three d and thirty four pounds per month to a single recipient and it's whether or not that benefit will go up in line with inflation or not. This from the Prime Minister this morning on a media interview. No decision has been made yet on the benefit uprating. This is potentially explosive for the government.

You're talking about the poorest people in society and whether or not the government actually comes through with something that the previous administration had promised to do. And it comes, Nathan on the back of a u turn around the top rate of tax yesterday. But this welfare payment issue

is really perhaps the next you to drop for the government. Well, if she's saying that there's no decision made on this cruise all aspect of the budget, given the cost of living crisis in the UK, I mean, what comes next? How can the trust government rebuild its credibility? Yeah, this is the problem. I mean we saw that Bronco write of sterling and guilt because of the Mini Budget, an announcement on a huge set of tax cutting policies without a real plan as to how that would be funded.

Um and it came also without the Fiscal Watchdog giving its judgment, the independent organization that gives its view on government tax and spending plans. Look, there was a bit of movement because Quasi quarteng Um has talked now about bringing forwards the o b R predictions so that that report on the government's fiscal plans would come sooner. The FT says it could come before the end of this month.

Our own Bloomberg reports have been pressing ministers on this issue, and I was speaking to the MP Anthony Brownie, sits on the Treasury Select Committee, and he was saying it would be a great idea if we actually knew the costings for the government's plans before the next Bank of England decision on the third of November. But again we still don't know, and that is also part of the credibility issue. It's about messaging, it's about timing, and it's

fundamentally also about policy. So this is a very very difficult moment for this government. You know, the Conservatives have been in power for twelve years, Nathan, and of course those trust has only been in power for just about a month here. But are we expecting that we could get further details from the Prime Minister when she makes that speech. Is that's something that could come down at

the conference itself, Well, that is possible. I mean, the whole point of the Conservative Party conference is to gather together MPs, counselors, lobbyists, think tanks. It's the sort of whole Conservative universe here at the i c C. It's in in Birmingham this year, in the North of England. So yes, there will be pressure on the Prime Minister to say more. And yet they've been it's slow in terms of releasing the details, and they have um you know,

downplayed the market impact in a lot of ways. They've blamed largely still the problems of the government on the inflation shot from the war in Ukraine, and they wanted to take very little responsibility you know, for the unfunded tax cut plans. So yes, all eyes will be on Liz Trust tomorrow. She speaks sometime between ten a and twelve lunchtime, and they'll be of course a big build up before we get to her speech. Quasi kwarteng speech

was only twenty minutes long. It was very very brief by conference standards, Nathan, only about a minute left here, Caroline. But what's the level of support among Conservatives for Liz Trust right now? Well, I was speaking to itself this morning. Amongst the voters, extremely dubious is how I'd put it. The latest polling from Savanta Comras puts the Labor Party twenty five point lead over the Conservatives. That is the

highest vote share for Labor since Converse started polling. It feels very much in the country as if the polling and voters have tipped towards the Labor Party in a big way versus concernations, and that has happened very quickly, just in the last couple of weeks, as it is just and quasi cassang of come into office. Yeah, it's been pretty stunning to watch, even from this side of

the pond. Thanks for this, Caroline. Great having you on with us this morning from Birmingham, England, where the conference of the Conservative Party continues and we will be watching very closely as Prime Minister Liz Trust gives that speech to the culmination of the conference. You want to keep it with Bloomberg Radio to get all the latest on the turmoil within the UK government right now. Looking at the British pound, it's gaining strength against the dollar right

now at one point one three zero. As far as futures go, those are gaining strength as WELLS and p futures up forty nine points. Now future is up three twenty three and NASDAC futures are higher by one points. The tenure Treasury is up thirteen thirty seconds. You'll do three point five eight. This is Bloomberg Bloomberg eleven three oh weather clouds, occasional showers and rain. Today breezy with mines only in the upper fifties. Showers line tomorrow low sixties.

We'll be back in the low seventies by Thursday. Right now, raining forty five in Central Park. Broadcasting live from the Bloomberg Interactive Broker's studio in New York. Bloomberg E Living Free to Washington, d C. Bloomberg on to Boston, Bloomberg one O six one to San Francisco, Bloomberg N sixty to the country Sirius XM Cho one nine and around the globe the Bloomberg Business app in Bloomberg Radio dot Com. This is Bloomberg Daybreak thirty on Wall Street. Good morning,

I'm Nathan Hagar and I'm Karen Mosko. Our just about four hours away from the open of US trading. Let's get you have to date in the news you need to know at this hour. US futures rising this morning on the heels of the best day for stocks in

two months. Still there's room to go lower from here, and that's according to Wealth Enhancement Group Senior VP Nicole Web, the market may come down to kind of that thirteen times to fifteen times multiplier, and when we get there, the SMP looks more fairly priced within reason, closer to three thousand and so we do think when you come through that support of thirty, there's there's probably still room

below that to go. Wealth Enhancement Groups Nicole Web says the US is likely and during a period of structurally slower growth. I meantime, Karen FED speakers continue the drumbeat for higher rates. New York Fed President John Williams says tightening still has a significant way to go. Williams is one of five FED officials speaking at events today. Priam iSER ahead of Global Rate Strategy A TV Securities thinks the Fed won't stop hiking anytime soon. We should be

pricing in a a session. I think the recession is pretty much baked in the cake for next year in the US, and I don't buy the shallow short recession argument. This could much longer lasting because the fight is going to be reluctant to start to ease. They're so worried about the nineteen seventies that I think they're going to be late on the way to easing policy. So the Tanya is attractive as a risk hedge. A miserable with TV security says rate hikes could continue into next year

despite the hawkish rhetoric Nathan. Global stocks are rallying this morning. The MSCI Asia Pacific Index ros more than two percent overnight, and You're up. Stock six is currently up two point two In England card it is the third day of the Conservative Party conference. Questions are swirling over whether Prime Minister List Trust can rebound from last week's budget announcement. Cabinet members tell us Trust will struggle to enact key parts of for economic plan because they're standing in the

party is already so damaged. In corporate news this morning, Nathan Elon Musk is weighing in on the war in Ukraine and the Tesla CEO enraged Ukrainians in a series of Twitter posts, saying that the country you should seek a negotiated solution to the invasion by Russia and see crimea for good Ukraine's president vladimir's Lanski response it in a post of his own, questioning whether Must supported Ukraine or Russia. And we have news on US China relations.

Karen Bloomberg News has learned the White House plans to announce new restrictions on Beijing's access to U S semiconductor technology. Sources say the Commerce Department will roll out of package of rules this week. And futures this morning are higher. S and P futures up almost fifty points down, futures up three hundred sixteen, NASTAG futures up one hundred nineties seven. The decks in Germany is up about two point six percent. And straight ahead your latest local headlines plus the check

of sports, and this is Bloomberg. Thanks and Wall Street. Rain forty five degrees in Central Park, lots of crashes with these white roads. Michael Barr has more on what's going on in New York and around the world. Michael, thank you very much. Nathan. New York City is relocating a humanitarian relief center intended for asylum seekers bus stuff from Texas and southern border states. The tent city at Orchard Beach has become a magnet for antimigration protests and

for people who are concerned about the migrants. The city plans the house of that facility. New York Mayor Eric Adams says the city is exploring solutions for the incoming asylum seekers and that everyone is safe. We're going to provide the public safety. That's my responsibility. My responsibility through the Police Commission and Police Department, all about law enforcement entities is to make sure that the communities will we

have any shelter migrants are not that is safe. Mayor Adams says the migrants will be sent to Randall's Island after concerns about flooding issues in Orchard Beach. North Korea launched an intermediate arrange ballistic missile over the Japanese territory for the first time in five years. Residents in northern Japan were told to take cover as the missile flew over and fell into the Pacific Ocean. Japan says North Korea's latest missile launch is reckless and strongly condemns it.

President Biden and the First Lady arrived in hurricane ravaged Puerto Rico, hit by Fiona. U s territory was hit by Hurricane Maria. Five years ago. The President says he wants to make Puerto Rico resilient with sixty million dollars in infrastructure aid. And yes, Puerto Rico is a strong place, and Puerto Ricans are strong people. But even so, you have had to bear so much more than need be and you haven't gotten the help in a timely way.

President Biden will visit Florida to survey ian's damage tomorrow. High stakes January sixth trial kicked off in DC District Court. Five members of the far right militia group the Oath Keepers faced decades behind bars. The defendants are charged with seditious conspiracy. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysted more than one twenty countries.

I'm Michael Barr, and this is Bloomberg, Nathan, Thanks Michael on Wall Street. Time for the Bloomberg Sports update Whichjohn stanshown. Maybe it's one of the things you never used to see in baseball and now see all the time, a manager taking a picture out even when the picture has not allowed a hit. Just the third start for Luis Sevareno since being injured the playoffs around the corner. Sevareno was at ninety four pictures through seven innings and Aaron

Boone removed him. Decision that sucks to have to make, um, because he was, you know, very efficient to you know, the decision would have been if he was to eight at that point. Um. You know, I didn't really want to go more than ninety with him today. I was gonna try and let him finish that seventh inning no matter what. Rangers broke up the no hitter and the shout out eighth and enough Miguel Castro, who just returned from injury. Thanks still Wan of Texas three to one.

John Carlos Stanton hit his thirtieth home run. Aaron Judge did not hit his sixty second double heater in Texas. Today, Metz the Nationals will play two at City Field. After last night's rain out. The Braves had Champagne ready to go, but lost in Miami four nothing in their magic numbers still one. The Phillies celebrated. They wanted to clinch their first playoff wirtsince two thousand and eleven. So the twelve playoff teams were known the matchups still to be the turn.

Week four ended with the forty nine or two to nine win over the Rams, who they've now beaten seventh straight times in the regular season. All four teams in the NFC West are two and two. The Jets or two and two, yet to win at home, they host Miami Sunday. In the Dolphins quarterback will be Teddy Bridgewater to a tongue of below out with his much debated concussion. Tyrod Taylor is in concussion protocol and Daniel Jones as

an injured ankle that is said to be improving. But the Giants Sunday in London against Green Bay may have to start third strink QB Davis Webb, who's never thrown a pass in an NFL game. John Bloomberg Sports, Thank you John. It's thirty seven on Wall Street. Time for the Tri State Business Report. Here's Bloomberg Scott car. The

Manhattan housing market is calming down. A report from a praiser, Miller, Samuel and Douglas Element Real Estate says sales of co ops and condos dropped three point seven percent in the third quarter from the previous three months and more than eighteen percent from the year before. The median price on transactions completed slipped seven point six percent to one one five million from the second quarter. Moody's has upgraded New

Jersey's outlook from stable to positive. The announcement follows a string of three credit ratings upgrades with a positive outlook from all four major credit rating agencies. Moody says pension contributions and maintaining liquidity above historic averages are among the factors that could lead to further upgrades. Law firm Rome mcgwigan is disbanding after being a downtown Hartford, Connecticut mainstay

for over forty years. At one time, the law firm, based at one State Street downtown, had about twenty partners. That's the Bloomberg Try State Business Report. I'm Scott Carr. Thank you, Scott. It's 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 Podasc on ten ten Wins in New York. We're talking

about Manhattan's housing market showing signs of cooling down. I'm Cornita how one ktr h in Houston. Charities may face a funding squeeze with plunging markets and rising inflation. I'm Genus Servetti and for WHAM eleven eighty in Rochester, New York. I'm reporting that Google's self driving truck program is hauling beer from Dallas to Houston under a pilot program for Constellation Brands. I'm Stephen Carl and Bloomberg D A B

Digital Radio and London. We've been reporting on the UK's Chancellor bringing forward his fiscal forecast to calm turmoil on financial markets. I'm Scott Carr on w T A M in Cleveland. I'm reporting at a big federal contract just landed by a medical research team at Case Western Reserve University. And those are some of the stories our Bloomberg journalists and analyst 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. Pension funds are supposed to be among the least exciting financial institutions yet. Last week in the UK, they were the center of an incipient financial crisis. What led to this was a variation on a well known theme, leverage meets unforeseen events. The danger when these two collide is not confined to any one country, so regulators everywhere

should take note. While the world's banks are somewhat safer than they were before the crash of two thousand eight, risks that start outside the traditional financial system still require greater attention. The more leverage held by non banks, such as pension funds, hedge funds, and insurers, the greater the dangers. Regulators need to remember that low probability events aren't zero probability events. Eventually they happen, and when they do, they

can cause serious harm. One day, if regulators do their job, pension funds will be boring again. This editorial was written by the Bloomberg Editorial 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, and you can hear Bloomberg opinion editorials every weekday at this time. Terminal customers can read more at opie I

n go Future is moving higher this morning. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather, clouds, occasional showers and rain today breezy highs in the upper fifties. We get into the low sixties tomorrow as showers come to an end, bringing a sunshine for Thursday and highs

in the low seventies. Right now, rain and forty five markets, headlines and breaking news twenty four hours a day at Bloomberg dot com, The Bloomberg Business at and at Bloomberg Quick Tape is a Bloomberg Business Flash and I'm Karin Moscow. A rally and global markets extending into a second day, lifting US DOT Index futures and Europeans shares As investors waiter, central banks will have to slow the pace of monetary tightening.

You check the markets every fifteen minutes throughout the trading day on Bloomberg s and P Future is up fifty two points this morning, Death futures have three hundred thirty eight and Nasdaq futures have two hundred four. The decks in Germany is up two point six percent. The ten year treasury up seventeen thirty seconds, held three point five six percent. They yield on the two year for four percent.

The NIMEX screwed oil is up eight tenths per cent or sixty seven cents at eighty four dollars thirty cents a barrel. Comics gold is up nine tenths per cent or fifteen dollars thirty cents at seventeen seventeen thirty announced. The euro point at nine eight six nine against the dollar. British found one point one three five one the end one forty four point seven zero, and bitcoin is up one percent and nineteen thousand, nine hundred fifty dollars. 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. North Korea launched an intermediate range ballistic missile over the Japanese territory. Presidents in northern Japan were told to take cover as the missile flew over and fell into the Pacific Ocean. Ukrainian President Voladimir Zelenski said that liberating settlements from Russian occupation is now the trend.

His comment comes after the strategic eastern town of Lehman was fully cleared. The town as part of the regions of Vladimir Putin annexed following referendums termed illegal by Ukraine and in talents. In baseball, the Yankees one Aaron Judge still at sixty one home runs with time running out. The Red Sox one, along with the A's, the Orioles and Giants lost the Medicine Nationals game postponed Monday Night Football.

The forty nine is Beat the Rams Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalist and analysts more than a hundred twenty countries. Michael barn This is Bloomberg. Nathan all right, Michael, thank you. It's five forty nine on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we're joining now by Ivy Jack,

head of equity research at north Star Asset Management. As we look at futures rising on the back of a rally yesterday to start the fourth quarter. Is this bounce the trend? Ivy? Um, we will probably have many bounces, but you know, I've got to tell you, Um, We're still very cautious there are many things going on right now, and I believe it is really hard to sustain any

kind of optimism at this point in time. UM. So we're just hoping to you know, make it through the fourth quarter and tolerate the level of volatility that we've had. We continue to expect. How much further volatility are you expecting? What kind of range are you looking at? UM? We don't necessarily I would say, have a range per se. But again, when you look at going into the wintertime. UM, First of all, uh, you know, what's going on in the UK is very worrisome in terms of a possible

currency prices. We're also concerned about the wintertime higher electricity and gas bills. UM. We're also concerned the consumer middle income and lowand consumers are stretched there and here in the US as well. UM. And on top of it, when you think of all of the you know, we're in a hurricane season for folks down in southern Louisiana and the southern areas, and so all of those things coming together make it really hard to think about what

the fourth quarter could be. And on top of that, by the way, I didn't even mention coronavirus UM it's still with us, and it still could have an impact on us in a variety of ways that we might not even anticipate. So are you focused more on some of those exogenous headwinds than the focus on the FED and what it's going to do, not just in the fourth quarter but into next year as far as interest rates go. No, We're focused on all those things. And I think in terms of the FED, I expect the

FED to continue raising rates. I mean, look here in the US, we're still gaining jobs. I think for September and we're expecting about two two hundred thousand jobs. So you know, even though I think some fundamentals still look strong, and I still think the FED has some work to do in terms of taming inflation. Um, but again, uh, there's just so many things that are unexpected that could happen.

There's so many variables I would say, negative variables out there that again hard to be positive in the fourth quarter. I mean, we're gonna maintain a defensive posture going into four and so you know, we might have a bounce today, but I would tell you, um, you know, I don't

think it's going to be sustained. A defensive posture going into four, So you're expecting that the FED it sounds like it's gonna continue with higher for longer interest rates for some time and could potentially raise interest rates even further into next year. Is that your call? Actually I meant to say three, I've gotten ahead. Okay, I'm already thinking I'm in twenty. So now we're expecting the fan to continue reason going into tree. Okay, good to get

that clarification. So in terms of defensiveness, what does that look like for portfolios? What are you advising your clients? So for us, it's interesting because it's the saying that I think that you know, in terms of our strategy, even during good times, UM, you know, we look for companies, particularly that are beneficial to life. UM. So you know, we don't invest in things that we can send that

we consider to be trends, are fats. We also look for companies that generate, you know, strong predictable cash flows. And look that's across sectors, so it's not necessarily in one sector or the other. UM. And I think those are the companies that you know, you definitely want to be holding right now and just thirty seconds left here are you thinking that we are in a recession or are we about to be in a recession? And what's that look like? Is it a deep one or shallow

at this point? You know, look, I'm not that inn b e er. You know, I can't really say if we're in a recession technically, but what I can tell you, what we do know is that, look, we know consumer spending is slowing. We see manufacturing is slowing, and even though we are still gaining jobs, there is evidence all around us um that things are slowing down considerably. Now.

You know, I don't know what the pace of that will be, but it's kind of like, you know, you see it coming and so you're preparing for the storm ahead. Thanks as always to get your thoughts, Ivy really appreciated. Ivy jack Had of Equity Research at north Star Asset Management. Karen Nathan, thank you. It's on well straight time for the Bloomberg Law Report, brought to you by American Arbitration Association.

Business disputes are inevitable, resolve faster with the American Arbitration Association, a global leader in alternative dispute resolution for over ninety years. More at a d r dot org. That's yet to the legal stories we're watching this morning from Bloomberg's Jeff Bellinger. Union officials say Starbucks agreed to resolve federal Labor Board charges that the company unlawfully retaliated against workers for organizing

activities at a location in New York City. A federal judge in Washington State free night transportation of some claims and a wage and our suit a ledging its stiff more than five hundred truckers on wages at the Health of California defeated a proposed class action by a medical provider that accused the insurance company of under paying for COVID nineteen testing. 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. Right, Jeff, thanks now. Another legal story we're watching this month March the fiftieth anniversary of the Clean Water Act, and yesterday, during the first day of oral arguments in the new Supreme Court, Term Justice is considered a case that could limit the reach of the Act by allowing you were

federal restrictions governing development and pollution. The case involves an Idaho couples a long battle to build a house about three hundred feet from Priest Lake in northern Idaho on land that federal regulators say is protected wet lands. For where in the case Bloomberg Jon Grasso speaks to environmental law professor Pat Parento of the Vermont Law School. A lot of this argument was wonky definitions and the Clean Water Act. What's the main question? The question of e

p A and the core of engineers. Jurisdiction under the Clean Water Act is a pretty classic environmental regulatory kind of question that's come up over and over. I mean the Supreme Court, just the fourth case where the Supreme Court has had to wrestle with this question of federal jurisdiction under the Clean Water Action. What we do have in the Clean Water Act and this geographic jurisdiction question is a fiendishly complicated scientific question. At the heart of it,

it really is a line drawing problem. Where do you draw all the line between federal jurisdiction and state jurisdiction in a watership? The Solicitor General kept saying, you know, if we try to draw a bright line, we're going to be attacked for picking an arbitrary line, because it veries so much across the country. You can imagine the different climate between the east and the west, the different

topography and so forth. So you know, the Court really wants something closer to a bright line sort of test, but it may not be possible. This is Justice Katangi Brown Jackson's first oral argument as a justice, and a lot of times in the beginning justices whole back. But she was an active question or as they say, oh boy was she ever fourth question? Fourth question came from Justice Jackson. Amazing to her very first oral argument on the Supreme Course. You didn't waste any time, and she

pressed her questions. I mean, I would say she's forward leaning in the direction of the government's position on this case. But she asked hard questions on both sides, and like I said, several times she interjected herself, so she she was not at all reluctant to get right in there right away. And that's for mode Law professor pap Parento

speaking with the Bloomberg student Grosso. Catch more of that interview, plus analysis of the latest legal news, by subscribing to the Bloomberg Law podcast or downloading this show at Bloomberg dot com. Slash podcast. Attorneys can found exceptional legal research and business development tools at Bloomberg Law dot com and on the Bloomberg terminal at b law go. And futures this morning are on the rise, with SMP futures of fifty eight points down, futures up three hundred eighty three,

NASDAG futures up two D four. Our top stories straight ahead. This is Bloomberg