Bloomberg Daybreak: October 6, 2022 - Hour 1 (Radio)

New York City Council members are calling for housing asylum seekers and hotels and church uses to the Randall's Island. Plus more missile launches from North Korea on Michael Lawn. More ahead, I'm John stash Own Sports. The baseball regular season enter The Yankees lost the Mets one. They begin

the post season tomorrow night. That's all trendy head on Bloomberg Day Break on Bloomberg eleven three on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco syrius x M one nine team and around the world the Bloomberg Radio dot Com and via the Bloomberg Business good morning. I'm Nathan Hagar and I'm Karen Moscow. US DOT index futures are lower

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, SMP Future is down fifteen points this morning, dowal Future is down a hundred three, and Nastack Future is down forty four. The decks in Germany is up about two tenths of a percent. Ten year treasury that'll change YELD three point seven five percent, and a yield on the two year four point one

five percent. Nathan Well, Karen. This drop in US futures follows a late day comeback on Wall Street after falling as much as one point eight percent. The S and P five hundred ended yesterday session down two tenths percent, fueled by a big options trade. Aaron Kennon, CEO at clear heartbreass that management says that drop in earnings isn't being priced in yet. I think a very shallow recession,

I would argue, is probably priced in. But if we are seeing some sort of double digit decline and let's say sp earnings next year, that's probably not yet priced into the market. Aaron kennon a clear hartbreast that management says tomorrow's jobs report will be a key indicator for the path ahead. Well. Fedow Reserve officials are repeating the mantra Nathan, and they don't plan to cut interest rates

the next year. San Francisco FED President Mary Daily in Atlanta FED Chief Rafael Bostic are the latest to bang the drum on the need to keep tightening. We spoke yesterday with Daily. I see us as raising to a level that we believe is restrictive enough to bring inflation down, and then holding it there until we see inflation truly get close to two and and demonstrate that price stability

is restored. Barry Daly's comments are being echoed by Atlanta FED President Raphael Bostick, who says rates still need to go much higher. I'd like to reach a point where policy is moderately restrictive, somewhere between four and four and a half percent, by the end of this year, and then hold of that level all and see how the economy and prices react. Atlanta FED President Raphael Bostake says there are encouraging signs on inflation, but he still sees

the overall picture as challenging. Let's turn to oil now, Karen. A production cut by OPEC is making waves. Right now, Prices are steady a day after OPEC and its allies agreed to the biggest production cut since twenty twenty. The alliance plans to slash daily output by two million barrels. Saw the Energy Minister, Prince Abdulazi has been salmon. Spoke with us in Vienna. I don't want people to chink

that this is one waste in this case. No, it's a variety of controuting uncertainties, and they could go yesterday altogether and to the positive side utra the negative side, or it could be accompanition. Saw the Energy Minister, Prince Abdulazi has been salmon, says. The US led initiative to slap a price cap on Russian oil is adding to

uncertainty in the market. Check prices now. Nimex screws up about a tenth percent of eight cents at eighties seven dollars eighty four cents of barrel Brent is higher by two tenths percent at ninety three dollars fifty three cents. Well, Nathan, the White House is pushing back against OPEC's decision to curb production, calling the move on necessary and short sighted. We discussed the matter with National Economic Council Director Briands.

As the President mentioned, we think it's unnecessary if you look at the global environment, where supply continues to be the predominant challenge. We've been working for some time to take action and encourage action globally to make sure that supply actually matches demand. White House Economic Advisor Brian d says the US will released ten million barrels from the Strategic Petroleum Reserve this mob. He's also calling on gasoline companies to close the gap between wholesale and retail prices

at the pump. In the UK this morning, political turmoil is still weighing on investor sentiment. Karen. Hundreds of billions of dollars have been wiped from the nations stock and bond markets in the first month of Liz Trust's government. Let's get more live from Bloomberg's U and Potts in London. Good morning, En, Good morning Nathan and Karen. Three hundred and forty billion dollars. That's the total knocked off the value of UK stocks and bonds over the past month.

While that's it's globally have been royal by central banks, tightening, confidence in the UK has taken a real battering. The September sell off on the new government's unfunded tax cuts saw the pound hits a record low against the dollar, intervention by the Bank of England and a swift climbed down by the Chancellor. One strategist, though, says some investors currently consider the UK as uninvestable. In London, i'mmun parts of both day Break, are you and thank you? All?

Back here in the U s we're learning more about the details behind Elon must takeover of Twitter. Turns out he was pushing for a lower price behind the scenes, and we get the details from Bloombery's Lisa Mateo. Sources say Musks representatives and Twitter held talks in the past few weeks about a buy out for less than fifty four dollars and twenty cents of share, but they didn't

go anywhere. The New York Times reported musk Hat saught a thirty percent reduction in the price this week, Must set in a letter to Twitter that he would be willing to complete the deal for the original price. In another development, the two sides agreed to postpone the billionaire's long awaited deposition today in the company's lawsuit aimed at forcing him to go through with the forty four billion dollar buy out. Lisa Mateo, Bloomberg Daybreak, Lisa, thanks, we

have word of more corporate job cuts. This morning. General Electric is slashing positions that it's onshore wind turbine manufacturing business. Bloomberg News is lergy E will reduce its US onshore wind workforce by twenty that it's the hundreds of jobs. The move is designed to counter mounting losses at its renewable energy unit. And finally, Nathan News on the pandemic.

This morning, American Express is ending her requirement that employees need to be vaccinated against COVID nineteen to enter the office. Let me get the story from Bloomberg's Charlie Pillett. List takes effect November one st It applies to offices across the United States, Canada, Australia, and New Zealand, all according to an internal memo two staff seen by Bloomberg. The New York based credit card company has been one of the few financial firms to embrace remote work in the

aftermath of the pandemic in New York. Charlie Pellett Bloomberg Daybreak. Charlie. Thanks. Bloomberg day Break is brought to you by SEI. Asset managers don't get results that are off the charts when their solutions are off the shelf. Learned how SEI is operating platform can turn infrastructure into a competitive advantage at se i C dot Com, slash Tech. This is Bloomberg and it's south five oh seven on Wall Street. It's fifty six degrees in Central Park. Got problems getting on

the New Jersey Turnpike this morning. If you're in East Brunswick, fill you in on that shortly. First, Michael Barr has more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan. New York City Council members are proposing housing asylum seekers and hotels and churches. The ideas from last night's council meeting income after Mayor Eric Adams now wants to house migrants in

a tent city at Randall's Island. Mayor Adams scrapped the original idea of having the Migrant Relief Center in Orchard Beach after opposition both sides of the debate. However, critics say the new Randall's Island location will still have the same problems, including access from migrants to get jobs, healthcare, and schools. President Biden will be in New York today. You will visit a jobs event at an IBM campus in Poughkeepsie. The President will also attend a Democratic fundraiser

in New Jersey. Yesterday, President Biden visited southwest Florida, pledging support for storm victims who lost everything to Hurricane Ian. I promise you we're gonna be with you every step of the way. The people of Florida to all of you, We're in this together. The President got a warm welcome from Florida Governor Rhndas Santis. Mr. President, welcome to Florida.

We appreciate working together across various levels of government. President Biden says Republican Governor Dessentis has done a good job. Biden said he and DeSantis have put politics aside, focused on the storm and have been in complete lockstep. More than thirty people, primarily children, were killed today when a gunman opened fire in a wild care center in northeastern Thailand. At He said, the gunman took his own life. It's

a tragic discovering in a horrific crime. Four family members kidnapped from a business in central California have been found dead. Merced County Sheriff Vernon Mornker has said last night that one suspect is hospitalized after trying to kill himself, but there may be other suspects just lived inside. Because this was completely totally senseless. We have a whole family wiped out and for what we don't know yet. Authorities had released surveillance video of a man kidnapping the baby, the

child's mother, father, and uncle. On Monday. North Korea fire two suspected short range ballistic missiles today towards waters where US aircraft carrier had been deployed, ratcheting up tensions in the region. It came shortly after North Korea condemned the Biden administration for redeploying the USS Ronald Reagan aircraft carrier

to a group of waters east of the Peninsula. Global News twenty four hours a day on air and on Bloomberg Quicktake Power about more than twenty seven hundred journalists and analyists more than a hundred twenty countries. Michael barrb. This is Bloomberg Nathan. Thank you, Michael. Tune up to five ten on Wall Street time for the Bloomberg Sports Update. Good morning, John Stashow, Good morning. The eighth of the

baseball regular season is over. The Dodgers won a hundred and eleven games, the most of the Nation of the Lakes since the nineteen o six Cubs, Mats and Braves both won a hundred one finished tied for first, but Atlanta won the season series ten to nine, and that's why the Braves have the first round by and the Mets have to play a best of three Wild Cards series with San Diego. All the games at City Field. The openers tomorrow night with a terrific pitching matchup. It

will be maxters or against the Padres, you Darvish. Mets finished up beating Washington nine to two. Jeff McNeill got the day off and he was able to just barely pulled off the Dodgers Freddie Freeman and win the National League batting title. McNeil hit three twenty six. He hit

two forty nine. Last season of hard work. Um, you know, trying to get back to who you know the player I knew I could be you know, after last year, and the last year wasn't a great year for me, so um, you know I kind of wanted to, you know, get back to you know who I am, and um, you know, it was lucky enough to be rewarded for that. Aaron Judge didn't play the Yankee season ending four two loss in Texas, so he did not win the batting title that would have given him the Triple Crown. Judge

been a second to the Twins. Luisa ray As, the guy who caught the ball that Judge hit for his record breaking sixty second on run, has already been offered two million dollars by a sports member abilia auction house at Giants practice before they leave for London. Daniel Jones limited with his ankle, Andrea Jones has not yet been ruled out for the game of Green Bay. A welcome site the return of center Nick Gates, who in Week two last year suffered a fractured leg injury that required

seven surgeries. It was feared was gonna end Gates his career Week five against Tonight Colts and Broncos in Denver. John Stash Neward Bloomberg Sports Nathan, thank you, john S and P futures are lower by twelve points now, Deal futures down eight two nast AT futures down thirty one points. Nime X screwed up a third percent now at eight

eight oh four. A Bear Earl talk about Opex decision next with Will Kennedy of Bloomberg News Bloomberg eleven three oh weather sunny, low seventies today and tomorrow for the weekend. It's still gonna be sunny, but cooler. We're only around sixty degrees Saturday, low sixties on Sunday. Currently fifty six markets headlines and breaking news twenty four hours a day at Bloomberg dot com for the Bloomberg Business Out and at Bloomberg Quick Tape. He's a Bloomberg Business Lash and

I'm Karen Moscow. US Dock Index futures a race gains and are moving lower. European stocks they're trading modestly higher. Investors are debating whether higher oil prices were further weekend growth, potentially slowing Central banks rate high cycles. We checked the markets every fifteen minutes throughout the trading day on Bloomberg U S and P futures. They're down seventeen points now dal futures on A hundred twenty and nasday features down fifty.

The decks in Germany's up tenth of up percent ten, your treasury down to thirty seconds, you have three point seven six percent, the yield on the two year four

point one six percent. Nine makes crude oil is up two tenths per cent, or sixteen cents at eighty seven dollars ninety three cents of Daryl call make schooled up a quarter percent or three dollars ninety cents at seventeen twenty four seventy announced the euro point in nine eight nine one against the dollar, British bound one point one to night the one forty four point seven one, and looking at bitcoin, it's up eight tens of per cent at twenty thousand, one hundred fifty dollars, and that's a

Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Michael, good morning, Good morning, Karen. We're learning more about a tragedy in northeastern Thailand. More than thirty people were killed today when a gunman opened fire in a childcare center. At least thirty people were killed, including children, before the gunman took his own life, according

to authorities. President Biden visited the hurricane ravaged area in Florida from Ian He says that they are going to be there every step of the way to help the victims of that storm. In baseball, the last game of the regular season, the Yankees lost Mets one over the Nationals nine to the Red Sox loss. The Orioles split a double header with the Blue Jays. Global News twenty four hours a day on air end on Bloomberg quick Take, powered by more than journalists and analysts more than a

hundred twenty countries. Michael Barr, this is Bloomberg Nathan. Thanks Michael. It's five nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we are continuing to watch oil prices this morning, following the decision from OPEC and its allies to cut production by two million barrels a day starting next month. Also keeping an eye on it for us is Will Kennedy, Senior Executive editor for Energy and Commodities for Bloomberg News, who joins

us now, Well, good morning. We're seeing kind of modest gains I think across the crude mark it this morning is there's some sort of indecision right now for oil traders about what this production cut is going to mean going forward for price not necessarily. I think what we should do is look at the move over the several days since big price cuts started to be discussed amongst OPEC members. So if we look at the week as a whole, we're up about ten percent, which is a

very meaningful move in the price. You know, almost eighty eight dollars in the New York contract, close to ninety four in the vent contract in London. Uh, these prices are significantly higher from where they were a week ago. So the market has responded to an over a number of days as as it became clear that a large cut would be the result of the meeting, so people were buying into it. And then when the meeting ended, as as people have been predicted, UMU, the frice sort

of settled down a little bit. This is a large cut sort of on paper though, right because there are a lot of members of the OPEC cartel that still haven't been meeting. They're action quotas. That's why two million bowels does not mean two million bowels. Two million bowels probably means something between eight hundred thousand and one million

bows a day. For the reasons that you say that many countries aren't already meeting their obligations, so they won't be cutting after this agreement, but I wouldn't see that as a reason not to believe this is significant. Global al demand is probably just over one hundred million bolls a day, so potentially you're talking about taking almost one percent of the world's oil off the market, and that

can have a significant impact. And of course the rationale that we're hearing from members of OPEC is the uncertainty around the outlook for oil demand is what's sparking this move. I guess given the war in Ukraine, does that sort of hold water that argument from ALPEC. It's one, it's one way to look at the market, um but there

are factors in both directions. So yes, there's been a lot of uncertainty about the direction of demand as people worry that the global economy is slowing in the face of tighter monetary policy, and that title monitory policy itself can wear and oil prices. A stronger doyle. The stronger dollar has been historically been bad file prices. And one thing that we've seen in recent weeks is that when the dollar was rallying hard, oil prices were falling. So

from that perspective, there has been some weakness. And you can see the argument from the overduces that they wanted to show up vices, but there are many arguments that point in the other direction. Inventories globally remain relatively low. The US has emptied a lot of its strategical strategic petroleum reserved to keep prices down. How much further can

it go through the winter? Chinese demand could pick up after the National Congress in Beijing as they backtrack from COVID zero, perhaps, So there are reasons on the other side as well. And I don't think the outlook through

the winter is necessarily clear. Yeah, it certainly isn't given the energy crunch that Europe is face sing particularly, But when we think about elevated oil prices and the the OPEC cartel trying to shore up oil prices, I mean, what does that mean given that we're looking at Brent above a ninety handle right now? I mean, that seems pretty elevated, doesn't it. It is, And if you look at product prices, especially prices that people pay for diesel, which is what they would use if they're trying to

replace ultra expensive natural gas. It's what some people in the US and Europe used to heat their homes. Those prices, prices look firm, although it's worth saying we're still a long way off of you know, the prices we saw around a hundred thirty dollars in the immediate aftermath of

Russian's invasion Russia's invasion of Ukraine. But it adds to a picture where energy is expensive, where consumers and businesses are already grappling, especially in Europe, with extremely high natural gas prices, of extremely high electricity prices, And it just adds to a picture of energy secure, scarcity and elevated energy costs globally. About thirty seconds left here. Are you looking for further shifts in the oil trade balance following

this decision? Well, one thing that we should put on people's vedas is in early December, Russia stop. You will stop buying Russian crude oil entirely, and that will change the crude oil trade around the world. They will have to find new customers in Asia. And one key question for the market going forward is will they find those customers or will Russia be false to reduce all production because it's existing markets are closed. Thanks for this will

great having you on with us. Will Kennedy, Senior Executive editor for Energy and Commodities for Bloomberg News and looking at prices now, Nimex crudes up three tenths per center twenty six cents at eighty eight oh two a barrel Brent. The international benchmark is also up about three tenths per cent at ninety three dollars sixty nine cents. Futures are moving lower. SMP futures down fourteen points, staff futures down a hundred, and NASTAC futures are lower by thirty eight points.

You're listening to Bloomberg Taper Bloomberg eleven three oh weather, sunshine and low seventies today, Keep it that way tomorrow. Cooler air moves in for the weekends Saturday only getting up to near sixty degrees low sixties for Sunday. Right now fifty six in Central Park, broadcasting live from the

Bloomberg Interactive Broker Studio in New York. Bloomberg e Living free to Washington, d C. Bloomberg nine to Boston, Bloomberg What All six one to San Francisco, Bloomberg nom sixteen to the country, Sirius XM to the one nine team, and around the globe, the Bloomberg Business at and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow. We are just about four hours away from

the open of US trading. Let's get you up to date on the news. You need to know what this show. Our US futures are lower in MU did action this morning. That's after stock snapped a two day winning streak yesterday. Main Stake Capital Management foundery David Kudla says, right now it's time to be defensive the classic sixty portfolio. It's down more than this year. Liquid alternatives that offer an opportunity for a positive return because of the strategies of

shorting stocks actually generate positive returns. David cool Love with Mainstake Capital says it's wishful thinking to believe that rate hikes will bring down inflation anytime soon. While still Karen fed officials keep banging the drum for tighter policy, insisting they do not plan to cut rates next year. San Francisco FED president Mary Daily spoke with Bloomberg yesterday. It's also very damaging to the economy to have this level of inflation, so we're committed to bringing it down in

staying the course until we're well and truly done. Mary Daly's comments about inflation are being echoed by Atlanta FED President Raphael Bostik, who also says rates need to go higher. Meantime, the price of oil is holding steady after opec a great to slash daily output by two million barrels. Saudi Energy Minister Prince Abdulzie has Been Salmon sat down with US in Vienna and said the move does not necessarily mean the market should price in more cuts in the future.

We wanted to give the market are direction and input. That's why we extended the agreement to end of conies. But we still have the same tours in our guidance to the market. Is Kusen, Saudi Energy Minister Prince Abdulazie has been Salmon said the US led initiative to slap a price cap on Russian oil is adding uncertainty to the market. Checking prices right now now. I'm ex Scrude oil is up half percent at eighty eight dollars sixty cents of barrel. Brent is up half percent at ninety

three dollars eighty three cents. The White House is expressing frustration with opex move, Karen. The Biden administration calls it unnecessary and shortsighted, saying the move alignes OPEC with Russia. In response, Economic advisor Brian These says the US will release ten million barrels from the Strategic Petroleum Reserve this month.

And a couple of notes in corporate news this morning, Nathan, starting with Twitter, it turns out billionaire Elon Musk was reportedly pushing to buy the company for a lower price than previously agreed upon. He'll now go through with the deal on its original terms. And Bloomberg News has learned

General Electric is cutting jobs. GE will reduce its US on shore wind workforce by twenty to counter mounting losses at its renewable energy unit S and p Future is lower down fifteen points this morning, Death futures down a hundred three and NASDAG futures down fort Each shoe straight ahead your latest local headlines, plus a check of sports and this is Bloomberg. Thanks Karen. Three on Wall Street, fifty six degrees in Central Park. Still problems getting on

the north bounded Jersey Turnpike on Route eighteen. Say more in traffic First Michael Barr with what else is going on in New York and around the world. Michael, thank you very much. Nathan IBM will announce plans to invest twenty billion dollars over the next decade during a visit by President Joe Biden to the company's camp is in Poughkeepsie, New York. President Biden will also be in New Jersey today for a Democratic fundraiser. Yesterday, President Biden was in Florida.

The President laid out some of the benefits available to storm victims who lost property during Hurricane Ian. If you don't have in shorts, or if you're under insured and you found a place to rent where your car has been destroyed, you're entitled up maybe entitle up to thirty seven thousand, nine hundred dollars in federal funds. Biden received a warm welcome from Florida Governor Around the centers, New York City Council members are proposing housing asylum seekers and

hotels and churches. The ideas from last night's Council meet income after Mayor Eric Adams now wants to house migrants in tense city at Randall's Island near Adams scrapped the original idea of having the migrant relief center in Orchard Beach after opposition from both sides of the debate. However, critics say the new Randall's Island location will still have the same problems, including access from migrants to get jobs, healthcare,

and school. More than thirty people, primarily children, were killed today when a gunman opened fire in the child care center in northeastern Thailand. Authorities say the gunman took his own life. North Korea has launched two ballistic missiles into its eastern waters after the U. S redeployed an aircraft carrier in response to the North's earlier launch of a nuclear capable missile over Japan. Japanese from Minister Fumio Kashita

said the North Korean action was absolutely intolerable. Today's launches came as the US aircraft carrier USS Renald Reagan returned to waters east to South Korea. Meanwhile, Tuesday's launches were North korea sixth round of weapons test in less than two weeks that has been condemned by the US and other countries. Secretary of Saint Anthony B. Lincoln spoke to reporters concerning Tuesday's missile launches. We are taking appropriate defense

and to turn steps with allies and partners. We've called for UN Security Council meeting uh and we're consulting with our partners on next steps. UM. I also want to make very clear that our commitment to the defense of our allies and partners Koree in Japan uh ISH is ironclad. Secretary B. Lincoln Global News twenty four hours a day on air and on Bloomberg Quick Take, Power a boy, more than the twenty seven hundred journalists, analysts more than

a hundred, twenty countries, and Michael bar this is Bloomberg. Nathan. Thanks Michael. Almost five six on Wall Street time for the Bloomberg Sports Update with John Stanshown. All right, Nathan, the baseball regular season is over. The new playoff format has twelve teams, the most ever includes the Phillies, who hadn't been to the postseasons in two thousand eleven, and the Mariners who hadn't gone to two thousand and one, also include the Yankees and meth Yanks. One games went

just forty two and thirty two. After the All Star break, they lost the finale at Texas Sport of two and will now await the winner of the wild Cards series between Cleveland and Tampa Bay. And that's one a hundred and one games. But because they got swept in Atlanta last weekend, they have to play a wild card series against San Diego. The opener the best of three tomorrow nights. The field match Serzer opposing the Padres. You Darvis Mets

finished up with a nine to win over Washington. James Bacan hit a three one homer Francisco and Georga threw on double. Jeff McNeil did not play, finished with a three twenty six average that one McNeil the National League batting title. He hit just to forty nine. A year ago, the Royals fired manager Mike Naffini. The Angels announced Phil Nevin, who took over when Joe Madden was fired, will return next season. Wait five NFL begins with Colts, Broncos and Denver.

The Giants headed to London to play Green Bays Sunday. It's not known if Giants give me Daniel Jones can play due to an injured ankle on Sunday's a little bit, a little bit away, So I think I'll continue to progress throughout the week and see how I feel. But uh confident my ability to uh throw from the pocket, throw outside of the pocket, and and uh place Jones can't play. It's like the third stringer Davis Webb will start to Tyrod Taylor is in concussion protocol. Webb never

thrown a pass in the NFL regular season again. John Stashwar, Boomberg Sports. Thanks John seven wall Street time for the Tri State Business Report with Bloomberg Scott car. Residential sales have started at Manhattan's two twenty two East Broadway. New York Business Journal reports seventy luxury condos went on sale this week at the property on Manhattan's lower east side. Developer Optimum Asset Management says the project under construction plans

occupancy for early three. A group of investors out of Brooklyn have just paid two point three million for a forty three year old office building in Glastonbury, Connecticut. Three ll C s Zon and Mint Equities and MS Parkway closed the deal this week on the over sixty four thousand square foot building on Western Boulevard. Parents in New Jersey can now file for an up to five dollar per child tax credit and get the credit next year instead of the way it was apparently mistakenly written that

would have delayed payouts of the credit until four. Governor Murphy signed a correction to the bill this week. That's the Bloomberg Tri State Business Report. I'm Scott Carr Right, Scott. Thanks, five thirty eight on Wall Street. Now, let's check in with our global news team for some of the top stories heard on our three hundred affiliate Bloomberg Radio stations around the world. I'm Steve Potos, Content and Wins in

New York. We're talking about IBM's plan to invest twenty billion dollars in future technology and US chipmates um Courney, Donahoean wh S and Louisville Forward raising the price of the hot selling electric fin fifty lightning pick up. I'm Stephen Carol and Bloomberg d A B Digital Radio in London. We've been reporting on new research showing the benefits of the Prime Minister's tax cuts being wiped out by more people paying a higher rate of tax. I'm Gina servet

I in for k CBS from San Francisco. I'm talking about Uber's former security chief being found guilty of concealing a massive data breach. I'm Scott Carr on w d c H in Washington. I'm reporting, believe it or not, Amazon's big new ongoing HQ two project is not the biggest mixed use project underway in the region. That was just of the stories are Bloomberg journalists and analysts working on this morning. It's thirty nine on Wall Street. The

following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. In the days since Vladimir Putin ordered Russia's largest mobilizations since World War Two, hundreds of thousands of Russians have fled the country. Some of the country's neighbors are now fretting about the consequences. But while frontline nations are understandably reluctant to absorb new waves of Russian exiles, closing the doors to them will

only strengthen Putin. In contrast, allowing them in would help drain Putin's war machine. Which is already struggling with mounting casualties. The plight of Russians seeking to avoid the battlefield pales in comparison to the suffering Putin has inflicted on the people of Ukraine. Yet giving more Russians away out would erode Putin's ability to prosecute his assault. The West should make the most of it. LUs editorial was written by

the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, Slash Opinion or OPI I N Go on the Bloomberg terminal. This has been Bloomberg Opinion and you are listening to Bloomberg Daybreak. Bloomberg Compinion editorials can be heard every week at this time. Terminal customers can read more at op I n go Right outs fifty six degrees in Central Park. We're heading up to

the low seventies today and tomorrow low sixties. For the weekend, markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktap. This is a Bloomberg Business Flash and I'm Karen Moscow and US dot index futures are lower this morning, while European shares are little ages, investors debate whether higher oil prices would further weaken growth, potentially slowing the rate

high cycles of central banks. We checked the markets every fifteen minutes throughout the trading day on Bloomberg SMP futures down twenty points, death features down a hundred thirty eight, NASTACK futures down sixty one. The decks in Germany is little change. Ten year treasury down one thirty second. You have three point seven five percent. They yield on the two year four point one five percent. Nine max scred

oil is little change. Now at eighty seven dollars, seventy four cents of barrel comes called up two tenths per cent or three dollars thirty cents and seventeen twenty four ten an ounce. The euro point eight against the dollar, British found one point one to seven nine, the yen one four point seven two, and bitcoin is of nine ten percent to twenty thousand, one hundred sixty dollars. That's a Bloomberg business flash. Now here's Michael Barr with more

of us going on around the world. Michael Karen, thank you very much. More than thirty people, primarily children, were killed today when a gunman opened a fire in a childcare center in northeastern Thailand. Already said the attacker it took his own life. According to Time media reports, the gunmen also used knives in the attack and then fled

the building. North Korea has launched two ballistic missiles into its eastern waters after the U. S redeployed an aircraft carrier in response to the North earlier launch of a nuclear capable missile over Japan. In baseball, on the last day of the regular season, the Yankees lost the Mets wand over the Nationals nine to the Red Sox lost the Orioles split a double header with the Blue Jays

the Giants. In these one Global News twenty four hours a day on it or and on Bloomberg Quick Take, powered by more than seven hundred journalist antalist more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg. Nathan. Okay, Michael, thank you. We're coming up to nine on Wall Street Life from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak and we're joined now by Ben Laidler. Global Market strategist at each HORO. We've got a lot to think

about this morning for markets. Ben was not just the FED outlook and the risk of recession, but now the outlook for global energy commodities with OPEC making its move. Does the decision to cut back production by the cartel affect your outlook for markets for the rest of this year? Not really, UM. I certainly think the open decision is a bit of a wake up call for commodity markets.

And we've obviously been worried about focused on demand fears from recession and China and everything else, and this is just a reminder I think of how tight the supply side is, UM, whether it's open it, whether it's a lack of new drilling, all of this just offsetting the demand slowdown and I think putting us in a regime of sort of high for longer, you know, commodities. UM. Having said all that, though ninety dollar oil is not

twenty dollar oil, which is where we've come from. UM. You know, natural gas prices here in Europe with more than halved in the last month or so, so I think you know that that's how I think you sort of square that circle. Sort of high for longer the commodities, but still the inflation relief, and it's about inflation. UM. Inflation has been driving everything, has been driving central banks, it's been driving procession risks, it's been driving earnings risks.

So I think people just need to stay laser focused on that. If headline inflation is falling as it is, and all the lead indicators, whether it's commodities, whether it's p MS, whether it's housing, whether it's even the jobs jobs data we saw, if all those lead indicators of easing up and we get visibility that inflation is going to keep coming down, then I think that gives us some visibility that we're not that far away from this

the top of this dead hiking cycle. Is there a risk though, that the production cut for oil could add to inflationary pressures if we start to see gas prices go up. Yes, but I think they've got to go up a lot. Mean again, where it's only for brain where you know, we were up and over hundred twenty now we're done at nineties, So I think they've got to go up a lot. I think to really sort of derail that UM sort of broader story A and B.

You know what's okay, doing they're responding to the weaker demand. So, you know, because of the recession fees, because of the concerns on China, you know, demand is sort of loosening off, so UM I would prefer a lot of lower rower prices, but again, ninety dollars a lot better than dred and twenty. I still think this is a I still think inflation

is coming down. I still think that begins to give us a visibility on the top of this FED interest rate cycle over the next two three weeks that gives us. That means that four percent was the peak for US tenure bond yields. I think these are the catalysts for the fourth quarter. That means I think that this market

is building up bottom here. It is interesting, though, because we keep hearing from Fed officials that they think that interest rates are going to keep having to go up or at least stay elevated for quite some time into next year. You think that the Fed pivot's gonna come sooner though. I don't think they're gonna pivot. I think what we're gonna see, we've got three more rate hikes

I think still to come. I just think they're going to be less big, so so maybe one more sony five than a fifties than a twenty five, and then we're done. Um. I think, you know, it was certainly a long way from cut interest rates, but I think market at this point, which just takes in visibility that we're not too far from the top. So if we've got three more hikes to come, that takes us through

to the beginning of the beginning of the year. I think, you know, the first stage of this building at bottom is just beginning to see the top of the fit cycle. I think the you know, the next bull market starts and the Fed starts cutting interest rate, We're not there yet, but I think, you know, the first step to that

is just getting visibility on top of the cycle. I think that's what the market is sort of feeding, you know, feeling out right now, just about thirty seconds left here, it sounds like you're thinking, we're going to get more of that visibility from the jobs report that comes out tomorrow. What's your call there, Yeah, I hope. So. I mean that's really sort of the missing link because they say all the other lead indicators, you know, whether it be

commodities to housing, have all sort of moved lower. The missing links being the job market. Again, the sort of adults survey was was reassuring, but uh, you know, the non farm payrolls numbers a real deal. Hopefully anything below three hundred thousands I think will be taken world by markets. Thanks has always been great getting your thoughts spend Laidler, Global market Strategists at Toro Karen. Thanks Nathan. It is five fifty three on Wall Street. Time for the Bloomberg

Law Report. Let's get to the legal stories we're watching this morning. From Bloomberg's Jeff Bellinger, the I r S has extended the tax deadlines for residents and businesses in North and South Carolina that were impacted by Hurricane Ian. Deadlines were already extended for Florida victims. Three professional sports leagues and four universities known to their sports programs filed lawsuits and a Chicago federal court they're seeking to shut

down online sales of counterfeit team merchandise. A lawsuit filed in federal court in Massachusetts charges that Liberty Mutual failed to pay hourly call center agents for required tasks at the start of their shifts and after meal breaks. 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. Elon Musk says he's ready to go ahead with forty four billion dollar deal to buy Twitter, but the trial over his attempt to walk away from the deal is still scheduled for October seventeenth and Delaware chance to record. So why hasn't Twitter made a move to pause the trial proceedings? For more? Bloombery student Grosso speaks to Eric Kelly, a professor at

Columbia Law School. His offer was made with a proviso that the Delaware Chancery Court enter an immediate stay of Twitter's fight and adjourn the trial. His offer came with the proviso that there'll be an immediate stay of Twitter's legal fight and an adjournman of the trial. Twitter has not done that. Is this a case of fool me once? Shame on you, fool me twice, shame on me, fool

me three, four or five times, shame on Twitter. Well that was a nice try by Mr Boss, but quite frankly, you know the imagery of Lucy holding the football and Charlie Brown running up to kick the football again. I think is definitely in play here, right. The fact of the matter is that letter sort of says, I am gonna undertake to agree to do what I've already agreed

to do and was trying to back out on. And so when you really read that letter closely, yes, it's signals that he's had a change of heart, that he's willing to try to close this deal on its original terms. That's great news for Twitter, but it doesn't really put his money where his mouth is. It's conditioned on an immediate stay of all proceedings and on the debt commitments closing. Well, you know, the fact of the matter is that doesn't really change any of the positions that he was in.

All it does is his signals that he's now more open to closing on these particular terms. So Twitter would be foolish if they said, Okay, now that you've signaled this relatively limp willingness to go forward, we should just put everything on hold, even though we're careening towards this on October seventeenth day, you know, if part of what was motivating him to issue this letter was sort of

a fear of walking into that deposition room. Well, if that's you know, has come to Jesus moment in deciding he's going to soften up on this deal, why would Twitter ever want to put on the brakes on their lawsuit? What kinds of things can Twitter do now to protect itself? I would expect that Twitter is trying to make sure that there are concessions there that are a little bit more concrete than merely a repetition of the promise that

he made back in April to close the deal. So, for example, they might have him stipulate the various legal outcomes and essentially say, I'm going to agree that to certain performance is in fact the right order here and concede my liability on the issue. Or alternatively, they might say, Okay, if you want to go through this deal, it's going to take a few more days or weeks to get

things lined up. We would like you to immediately put enough cash and stock in other companies like Tesla and SpaceX into an escrow account so that if you try to back out on it, we don't have to try to haul you into court for a specific performance decree. We'll just have a judge attached that account and have that will kind of put your money where your mouth is. And as very Tally are, professor at Columbia Law School,

speaking with Bloomberg stun 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 Podcasts Attorneys. You can find exceptional legal research and business development tools at Bloomberg Law dot com

and on the Bloomberg terminal at b law Go. Future is this morning or lower SMP Future is down twenty two points down features down a hundred fifty four and Nasday features car down seventy one, ten year treasury down to thirty seconds, seal three point seven six per cent and the yield on the two year four point one six per cent and still ahead on Bloomberg Daybreak and check on the business headlines and all the news you need to start your day. And this is Bloomberg