Bloomberg Daybreak: October 6, 2022 - Hour 2 (Radio)

seekers and hotels and churches instead of Randall's Island. Plus more missile launches from North Korea on Mike Blood Blown More Ahead, I'm John Stash Howard. Sports the baseball regular season and then the Yankees lost the Mets one. They begin the postseason tomorrow night. That's all trading ahead on Bloomberg Day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixty, San Francisco, Sirius x AM one nine

Team and around the world. Old on Bloomberg Radio dot Com and via the Bloomberg Business app and good morning. I'm Kared Moscow. I'm Nathan Haygar. Bloomberg Daybreak is brought to you by B and Y Melon's Pershing Learned why the world's most sophisticated wealth management and institutional firms rely on Pershing to help them improve profitability, create efficiency, attract talent, and manage risk at Pershing dot Com and US futures are lower this morning six o one on Wall Street.

We checked the markets every fifteen minutes throughout the trading day. On Bloomberg, SMP futures down twenty five points now futures down a hundred seventy eight and NASDACK futures are down eighty one. Tenure treasury down to thirty seconds here three point seven six percent, Nathan, we're caring. The drop in futures follows a late day come back on Wall Street yesterday. It fell as much as one point eight percent, but ended the session for the SMP five hundred down two

tenths percent, fueled by a big options trade. Aaron Kennon, CEO at Clear Harbor Asset Management, says a drop in earnings is not 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 sparnings next year, that's probably not

yet priced into the market. Aaron Kennon A clear Heartborasset Management, says tomorrow's jobs report will be a key indicator for the path ahead well Nathan Feder Reserve officials are repeating the mantra that they don't plan to cut interest rates next year. San Francisco FED President Mary Daily and Atlanta FED chief Raphael Bostick are the latest to bang the

drum on the need to keep tightening. We spoke yesterday with Daily, by c U says 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. Mary Dailey'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 at four and a half percent by the end of this year, and then hold of that level and see how the economy and prices react. Now. The NFL president Raphael Bostake says there are encouraging signs on inflation, but he still sees the overall picture is challenging. Let's turn to oil now Karen,

where a production cut by OPEC is making waves. Prices are currently steady a day after OPEC 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 Abdulaz he has been salmon, spoke with us in Vienna. I don't want people to think that this is when waste in this case. No, it's a variety

of conbluting uncertainties. And they could go yesterday altogether and to the positive side or to the negative side, or it could be accompanition. Saw the Energy Minister, Prince Abdulazi has been salmon, says the US lead initiative to slap a price camp on Russian oil is adding to market uncertainty. Checking prices now, they moved to take lower now with nime ex screwed down a tenth percent or ten cents at eighty seven dollar sixty seven cents of barrel. Brent

is little changed, down six cents at thirty one cents. Well, the White House is pushing back against opex decision occur production Nathan, calling the move unnecessary and short sighted. We discussed the matter with National Economic Council Director Brian D's. 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 said the US or release ten million barrels from the Strategic Petroleum Reserve this month. He's also calling on gasoline companies to close the gap between wholesale and retail prices at the pump. Let's turn to the UK, now Karen,

where political turmoil is still weighing on investor sentiment. Hundreds of billions of dollars have been wiped from the nation's stock and bond markets in the first month of Liz Trust's government. Let's get more from Bloomberg's U and Potts in London. Good morning, good morning, night and Karen three hundred and aty billion dollars. That's the total knocked off the value of UK stocks and bonds over the past month. While I said's globally have been royal by central banks tightening,

confidence in the UK has taken a real battering. The September set off on the new government's unfounded tax cuts saw the pound hits a record low against the dollar, interventioned by the Bank of England and a swift climbed down by the Chancellor One Strategies, though, says some investors currently consider the UK as uninvestable. In London, i'mun part spin Back, Day break, hery new and thank you. Back Here in the US, 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 Bloomberg'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 had sought 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 of greed to postpone the billionaires long awaited deposition today in the company's lawsuit aimed at forcing him to go through with the forty four billion dollar buyout. Lisa Mateo Bloomberg Daybreak. Thanks Lisa, 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 has learned GE will reduce its US onshore windworkforce by that's hundreds of jobs, moves designed to counter mounting losses at its renewable energy unit. And finally, news on the pandemic this morning, Nathan American Express ending our requirement that employees need to be vaccinated against COVID nineteen to enter the office. We get the story from Bloomberg's Charlie Pellett.

This takes effect November one, stand 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 Pellette Bloomberg day Break, Charlie, Thanks, futures are moving lower now, S and P futures down twenty six point. Staff futures

down a hundred seventy one. Nastack futures are lower by eighty four points. In the tenure treasuries down five thirty

seconds yield three point seven seven percent. Local headlines and a check of sports up next, This is Bloomberg and at six oh seven on Wall Street where fifty four degrees in Central Park still got that overturned tractor trailer on the northbound New Jersey Turnpike on ran from Roote eight team more coming up in traffic first, Michael Barr with what else is going on in New York and

around the world. Michael, thank you very much. Nathan, 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 a tent city at Randall's Island. Mayor 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 Andal'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 State today. You will visit a jobs event at an IBM campus in Poughkeepsie. IBM will announce plans to invest twenty billion dollars over the next decade of the campus. 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 Rhonda Santis. Mr. President, Welcome to Florida. We appreciate working together across various levels

of government. Biden said. He and to Santists 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 fun here in a child care center in northeastern Thailand. Authorities said the gunman took his own life. It's a tragic discovery and a horrific crime for family members kidnapped from a business in central

California have been found dead. Merce Head County Sheriff Vernon Warnkers 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 have released surveillance video of a man kidnapping a baby, the child's mother, father, and uncle

on Monday. North Korea fire to suspect a short range ballistic missiles today towards waters where a US aircraft carrier had been deployed to ratcheting up tensions in the region. It came shortly after North Korea condemned the Biden administration for redeploying the U S. S. Ronald Reagan aircraft carrier to waters east of the Peninsula. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and analysts more than a

hundre twenty countries. I'm Michael Barron. This is Bloomberg, Nathan. Thanks Michael almost six cent on All Street time for the Bloomberg Sports Update with John Stenshown all right. Eight to The baseball regular season is over. The Dodgers won a hundred eleven games, the most of the National late

since the nineteen oh six Cubs. The Mets and Braves both won a hundred and one finished tied for first, but Atlanta won the season series ten to nine, and that's why the Braves at the first round by and the Mets have to play a best of three wild card series with San Diego. All the games at City Field. The openers tomorrow night with a terrific pitching matchup. It will be match ters or against the Pondres, You Darvers.

Mets finished up and in Washington nine to two. Jeff McNeill got the day off and he was able to just barely hold off Freddie Freeman and win the National League Batting until I don't Neil hit three twenty six.

He hit two forty nine last season kind of hard work and um, you know, trying to get back to 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, 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 for to loss of Texas, did not win the batting Tyler would have given him the Triple

Crown judgment. A second of the twin. Luisa Ray is the guy who caught the ball that Judge hit for his record breaking sixty second home run, has already been offered two million dollars by a sports member of Billia. Aption now at Giants practice before they leave today for London. A welcome sighte the return of center Nick Gates, who in Week two last year supper Day fracture leg injury that required seven surgeries. It was feared that it was going to end Gates's career. It's not known when he'll

actually playing a game. Daniel Jones limited in practice with his ankle injury, but Jones has not yet been ruled out first Sunday's game of Green Day, John Stashu or Bloomberg Sports Nathan, Thank you, John stp. Futures are moving lower now down seven tenths per center, twenty six points down. Futures are down a hundred seventy six points. Nasdaq Future

is lower by eighty six points. We'll talk about this market next if Liz Ann Saunders of Charles Schwab, this is Bloomberg Bloomberg eleven three oh weather sunshine low seventies today and tomorrow. Lots of sun on Saturday, but cooler only near sixty degrees will be in the low sixties in the sunshine by Sunday. Right now fifty four in

Central Park markets. Headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business Out and at Bloomberg Quicktape's a Bloomberg Business Flash and I'm Karen Moscow. US Dock Index futures are falling as the OPEC close alliances planned to cut oil supply, stokes inflation fears, and as traders await labor market data e gage to

the risk over session. We checked the markets every fifteen minutes throughout the trading day on Bloomberg get us in p futures are down twenty six points, dal Future is down one seventy two and as deck Future is down eighties seven. The decks in Germany is down for were tense of Upper said the tenure Treasury down three thirty seconds three point seven six percent in a yield on

the two year four point one six percent. Nine X Screwed oil is down to tens per cent or twelve cents at eighty seven dollars sixty four cents of barrel comes gold up a tenth of upper cent or two dollars thirty cents. A seventeen twenty three ten announced the euro point two against the dollar, British found one point one to five five and the yen at one four point seven to In bitcoin this morning, it's up seven tenths percent to twenty thousand, one twenty five dollars as

a Bloomberg Business Flash. Now here's Michael Barr with more on what's going on around the world. Michael Karen, thank you very much. More than thirty people, primarily children, were killed today when a gunman opened fire in a child care center in northeastern Thailand. Authority said the attacker later took his own life. President Biden visited Florida yesterday to offer support for the victims of Hurricane Ian. The President told victims that we are with you every step of

the way. In baseball, on the last day of the regular season, the Yankee Is lost the Mats one over the Nationals nine to the Red Sox lost the Orioles split a double head over the Blue Jays, the Giants, and as one Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than twenty seven hundred journalist and analyst and more than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan Okay, Michael. Thanks at six nineteen on Wall Street

Live from the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and we're joined now by liz Anne Saunders, chief investment strategist at Charles Schwab. As you watch futures take another leg lower this morning. We started this quarter off so well, liz Anne, but it looks perhaps like investor sentiment is back to where it started. Or is that taking it too far? Um? You know you're actually talking about sentiment indicators. It don't quite swing as wildly on a day to

day basis as you see the market. I think it's just the the nature of the beast. And when you have a significant two day move like that the last four times we had back to back two and a half percent plus updates, we're all in the fall um into the winter of two thousand and eight, and so to see a bit of a reprieve in that case, you had unfortunately still double digit declines left ahead of

you before you hit the March O nine bottom. And I'm not suggesting that that we're repeating that, but um to to have some profit taking kicking after such a strong two day move is not surprising, especially in this type of market. Now, I'll talk a little bit more about this type of market. What's predominating. I mean, we've heard of, particularly from the Federal Reserve officials, continuing to bang the drum about higher for longer interest rates. Is

that the main focus for you? It is? But you also, um see the equity market moving somewhat in inverse lockstep with what bondyields are are doing. So even going back to the mid June low and the rally between mid June and mid August had a lot to do with what was happening in in bond yields, and I think more recently too, you had to reprieve both in bond yields and the dollar that I think was the called the fundamental set up for the two day rally that

we have. So yes, I think it's it's it's rate and rates and Fed policy that are that are in

the driver's seat in terms of market behavior. Do you see any further moves UH in bond yields given the message we're hearing from the FED, were of the view that at least the recent move on an intra day basis up to a little north of four percent on the ten year, that there's probably not a lot more upside beyond that, and we we we are not not definitively of the view that the Fed may be able to at least lower the pace of rate hikes UM sooner maybe than um. Some of the pessimists this this

is distinct from a pivot. I think the notion of a p it to the extent that you define that as a shift from rate hikes to rate cuts. I think the set is appropriately tried to push way back on that notion, and that certainly sat behind the mid June to mid August rally, but they may not have to go to the mid four percent range, which is

what the latest projections and dot spots showed. Um. You know, I think you're at about a sixty likelihood of a seventy basis point hike in November, but I wouldn't surprise if they started to telegraph maybe lower hikes, meaning fifty um, even if we get seventy five in November. Interesting you say that because we just heard from Raphael Boston from the Atlanta Fed yesterday saying that he'd be okay with

four to four and a half percent. I mean, you put the four and a half percent number out there, So that's one FED speaker, and that's the stance I think that many of them have right now. We just think with the leading indicators of inflation in many cases have significantly rolled over. You saw it in both I s M manufacturing and I s M services prices paid. Um.

This is leaving aside oil. Obviously, given the recent news there that there may be a point at which the FED can just lift its foot off the brake um.

I also think, though importantly, as they really have been emphasizing, whenever they get to their destination, whether it's four in a quarter or four and a half four and three quarters, they're going to stay there for a while, that this isn't going to be a one eight two rate cuts, other than if the economic deterioration that they're actually trying to engineer here a bit in order to bring inflation

down sustainably, or financial instability really kicking in. I think the Fed gets to their destination and they stay a while. Just about thirty seconds left here. Do you think tomorrow's jobs report helps the Fed get to that destination? Depends

on what it is. I think some of the labor market data, not least being the huge drop in job openings, which is something they've specifically cited, is what they want to see some contraction in, but they would ideally love it to happen exclusive of a significant increase in the unemployment rate or significant deterioration in pay rolls. I think a hotter than expected number from a stock market perspective is probably not a good thing. Thanks as always, Lizanne,

great getting your thoughts. Liz Ane Saunders, chief investment strategist at Charles Schwab with us this morning as we watch futures move lower. Now, SMP futures are down twenty six points down, futures down a hundred seventy five and NASDAC futures are lower by eighty six points ten. Your treasuries down four thirty seconds for yield of three point seven seven percent. NIMEX crude moving a bit lower now, down two tenths per cent, or fourteen cents at eighty seven

dollars sixty two cents of barrel. Stay with us. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather, sunshine, low seventies today and tomorrow. We're gonna keep it sunny for the weekend, but it's gonna be cooler, only around sixty for Saturday, low sixties for Sunday. Right now in Central Park, broadcasting ve from the Bloomberg Interactive Broker Studio

in New York. Bloomberg e Living Freedom to Washington, d C. Bloomberg ninety nine one to Boston, Bloomberg on OH six one to San Francisco, Bloomberg nine sixteen to the country. Sirius XM to the one nine team and around the bloom the Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak. It's six thirty on Wall Street. Good morning. I'm Nathan Hagar and I'm Karen Moscow, and we're just about three hours away from the open of US trading.

Time to the five things that you need to notice start your day. Brought to you by Interactive Brokers. Interactive Brokers clients are an interest of up to two point five eight percent on the idle cash and their brokerage accounts. That's just one of the many reasons clients use interactive brokers to trade stocks, options, futures, currencies, bonds, funds, crypto and more. Visit ibkr dot com slash interest rates to

learn more. At first, US futures are lower this morning, and that's after stocks and after two day winning streaky yesterday. Mainstay Capital Management founder David could Law says, right now it's time to be defensive. The classic sixty portfolio this 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 could law with Mainstay Capital says it's wishful thinking to believe that rate heights will bring down inflation anytime soon. Stealth 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 Daly's oak 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 Bostick.

He says rates still need to go higher. Meantime, Nathan, the price of oil is holding steady after Opak a great to slash daily output by two million barrel Saudi Energy Minister Prince Abdulazie has been Salmon, says he sat down with us in Vienna and says the move does not necessarily mean the market should price in more cunts in the future. We wanted to give the market a creed direction, a creed input. That's why we extended the agreement to end. But we still have the same tools

in our guide this to the market. Is Saudi Energy Minister Prince Abdulazie has been Salmon says the US led initiative to slap a price camp on Russian oil is adding uncertainty to the market and checking prices now not like screwed oil down about a tenth of a percent now it's at eighty seven dollars sixty three cents of barrel Brent also done about the same and ninety three dollars twenty two cents. The Biden administration's calling OPEX move

unnecessary and shortsighted, saying it aligns OPEC with Russia. In response, Economic advisor Brian d says the US will release ten million barrels from the Strategic Petroleum Reserve this month. And in corporate news this morning, Nathan, it turns out billionaire Elon Musk was reportedly pushing to buy Twitter for a lower price than previously a great upon he'll now go through with a deal on its original terms. That's the five things that you need to know to start your day,

brought to you by Interactive Brokers. And this is Bloomberg. Thanks Karen. Six three on Wall Street, fifty four degrees in Central Park, still got that mess on the northbound New Jersey Turnpike on ramp from Route eighteen in East Brunswick. We'll tell you more in Traffic First. Michael Barr has more on what's going on in New York and around the world. Good morning, Michael, Good morning, Nathan late Words.

South Korea says twelve North Korean war planes have flown near their border, prompting it to launch warplane in response. This after North Korea launched two ballistic missiles into its eastern waters today. It comes after the U. S redeployed in aircraft carrier in response to the North launched tuesday of a nuclear capable missile over Japan. Secretary of State Anthony Lincoln, you're taking appropriate defense and to turn steps

with allies and partners. We called for UN Security Council meeting UH and we're consulting with our partners on the next steps UM. But I also want to make very clear that our commitment to the defense of our allies and partners free in Japan is is ironclad. Secretary b Lincoln spoke in chilean IBM will announce plans to invest twenty billion dollars over the next decade during a visit by President Joe Biden to the company's campus in Poughkeepsie,

New York. President Biden will also be in New Jersey today for a Democratic fundraiser. Yesterday, President Biden was in Florida. President Biden laid out some of the benefits available to storm victims who lost property during hurricane And 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 Ron Descantis, who has clashed in the past with a Biden administration. New York City Council members are proposing housing asylum seekers in hotels and churches. The ideas from last night's council meet income after Mayor Eric Adams now wants to house migrants in a tent city at Randall's Island after scrapping the Orchard

Beach location. 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. More than thirty people, primarily children, were killed today when a gunman opened fire in a child care center in northeastern Thailand. Au already

say that the the gunman took his own life. A Connecticut jury is expected to hear closing arguments today in a trial to determine how much Info Wars hosts Alex Joe Own should pay for persuading his audience that the twenty twelve shooting at Sandy Hook Elementary School was a hoax to impose more gun control laws. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts more

than a hundred twenty countries. Michael Laren, this is Bloomberg. Nathan, okay, Michael, thank you. Almost six thirty six on Wall Street. Time for the Bloomberg Sports Update with Johnstowns shown all right to. The baseball regular season is over. The new playoff format has twelve teams, the most ever. It includes the Phillies, who had not been to the postseason for the two thousand and eleven and the Mariners who hadn't gone to two thousand and one. It also includes the Yankees and

meth Yanks one games. They want just forty two and thirty two. After the Allstar Great they lost the finale at Texas for to two. They'll now await the winner of the wild Cards series between Cleveland and Sampa Bay. The Mets won 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 open to the best of three is tomorrow night at City Field, with Matchers are opposing the Padres. Hugh Darvis Mets finished

up for the nine to one over Washington. James McCann hit u three run homer, Francisco den Door a three run double. Jeff McNeil did not play, finished with a three twenty six average that one McNeil the nash League batting title. He hit just two forty nine a year ago. The Royals fired manager Mike Mffini. The Angels announced Phil Nevin, who took over when Joe Madden was fired, will return next season. Big five NFL begins with Coats and Broncos

tonight in Denver. The Giants lead today for London to play the Packers Sunday at Tottenham Stadium still in Jersey. Yesterday, giant stob Daniel Jones gave an update. I was Inna Juan 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 confidence my ability to uh throw from the pocket, throw outside of the pocket, and and uh take place from boat of Jones can't play.

It's likely third stringer Davis Webbill starts with Tyrod Taylor's and can cut from protocol. Web has never thrown a

pass in the NFL. Readulus using game Ron scratch. I went Bloomberg Court thanks set on Wall Street time down to take a look at stock some of the names moving in the pre market with Bloomberg Radio and TV Markets correspondent created goof tub once again watching Twitter as the saga continues with Elon Musk creat Yeah, we gotta come back to a fan favorite here t W t R is your ticker, Nathan down one point three percent

and to your point, the saga does continue. You know, we were talking about this massive litigation battle between Elon Musk and between the folks over at Twitter. They were

trial was supposed to start in October seventeenth. It was something that UM a lot of the street had said that Twitter would undeniably have the advantage, and just given that the trial was being done in the Delaware Chancery court, that being that which tends to favor UM kind of more of the deals that already being made, UM, it tends to favor the uh whoever is being acquisitioned UM

so in this case Twitter. So Twitter shares UM actually down now because in the last couple of days we've heard stories that Elon Musk is actually looking to bid for Twitter at the offer price of fifty four dollars and twenty cents. The idea here being that their legal team dudes not think that they have much of a shot when it comes to UH this this trial that's going to unfold, So they're just going to kind of

settle in what the original agreement was. But since then, you've had some major players who have actually tried to help Elon Must get some of that financing thirteen billion dollars of that financing start to back out. Think Apollo, for example, which was really the leader and helping Elon Must get that financing. Now the question is if he is to spend that money or to give the offer price fifty four dollars twenty cents and think of forty three billion dollar deal, where how is he going to

pay for it? And it's those concerns that are now waiting or weighing, I should say. On on Twitter shares this morning, t w t R down one point three percent. How's that for Saga, Nathan? Well done? Of course we've been keeping so much attention on Twitter, but it looks like analysts are looking at social media or broadly, it's not the only company that they're looking at. It's not

the only company that they're looking at. And this is a really important mover here because the entire market, i should say, is down to the tune about seven tenths of one percent. Pinterest, on the other hand, p I n AS is up about four percent, jumping after Goldman

sacks Up basically gave them their standpard approval. They upgraded the social networking site to a buy from a neutral, saying that they're seeing those improving user growth patterns, better engagement trends, even as the backdrop for digital advertising remains

kind of uncertain. And this is going to be crucial because social media companies broadly have always kind of been this um I want to say bell Weather if for a lot of kind of economic indicators of this idea here being that if you believe in the strength of the economy, you're going to spend more on advertising. You're going to spend more trying to get the consumer and therefore feed into the bottom line of the likes of pinterest. Good to get a macro perspective on some of these

individual movers. Thanks as always, Pretty Bloomberg Radio and TV Markets correspondent Pretty Gupta. Watching the early morning trade, looking at stocks as a whole, they are moving lower. SMP futures down twenty five points, Stown futures down a hundred eighty Nasdaq futures are lower by eighty one points, and the tenure Treasury is down four thirty seconds. You'ld three point seven six percent. It's like a crude once again, little change down about a ten percent on the nimax

at eighty seven sixty five a barrel. This is Bloomberg Bloomberg eleven three oh Weather sunshine for the rest of this weekend into the weekend will be in the low seventies today and tomorrow low sixties. Saturday and Sunday right now, fifty four degrees at a clear sky in Central Park. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, bloo Bloomberg Business at and at Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm Karin

Moscow future is lower this morning. We get to the first Word breaking news desk for today's morning call, and here's Bill Maloney. Bill, good morning, and good morning, Karen. That's right. US futures are in the red right now. Deaf futures down a hundred eighty two points, as if he's dropped twenty seven and as that futures dropped by eighties six the US ten years at three point seven seven percent, Gold is little changed, Oil is in the red,

and bitcoin is training higher by one percent. Shanghai fil half percent overnight, while your pay markets are also in the red this morning and back in the US on the economic Friday thirty initial jobs claims Regarding earnings, McCormick EPs Speed S, Smiths and also look for Constellation brands to report in the pre market. Wrapping things up, Auto Nation was cut neutral at JP Morgan pinches raced by

a Goldman, Sachs and verizoner was raced to outperform. Over at Oppenheimer Live from the first Breaking News deskm Bill Maloney, Karen, right, Bill, thanks to your live breaking news over your Bloomberg type squawk on your terminal squ a w u K. 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. South Korea says twelve North Korean war planes have flown near their border, prom to get to

launch warplanes in response. It comes after North Korea launched two ballistic missiles into its eastern waters. Pyong Yang criticized the US redeployed an aircraft carrier after the North's earlier launch of a nuclear capable missile over Japan. Authorities say a former police officer killed at least twenty four children and eleven adults in a gun and knife attack that

began at a child care center in Thailand. The assailant fled the first scene, shooting from his car as he drove home, before killing his wife and child and taking his own life. In baseball, on the last day of the regular season, the Yankees lost, Mets one over the Nationals nine to the Red Sox lost, the Orioles split a double head over the Blue Jays, the Giants and as one Global News twenty four hours a day on air and on Bloomberg Quittake, powered by more than twenty

seven hundred journalists and analysts on twenty countries. Michael bar and this is Bloomberg. Karen alright, Nchaolbar thank you on walls. Let's turn to news and science and technology now with the Bloomberg and j I T Stam report. It brought to uba New Jersey Institute of Technology, whose n j II unit has joined with pharmaceutical giant Murk to establish the Mark Digital Sciences Studio to support drug discovery and development.

More at n j I T DOT E d U and here's just making news and science, technology, engineering and math. American Express is ending a requirement that employees need to be vaccinated again to enter offices. The decision, which takes effect November first, applies to offices across the US, Canada, Australia and New Zealand. Staffers also will no longer have to be vaccinated to attend companies sponsored in person events, and of course they're talking about vaccinations for COVID nineteen.

IBM will announce plans to invest twenty billion dollars over the next decade during a visit by President Joe Biden to the company's campus in Poughkeepsie, New York. The investments will go toward research and development and the manufacturing of

Semiconductor's mainframe technology, artificial intelligence, and wantum computing. According to a new studied route that stretched across three continents, this summer drying out large parts of Europe, the United States, and China was made twenty times more likely by climate change researchers from World Weather Arbitration, a group of scientists from around the world. You study a link between extreme

weather and climate change. See this type of drought would only happen once every four years across the northern hemisphere if not for human cause climate change. Now to expect these conditions to repeat every twenty years, given how much the climate has warmed. And that's the Bloomberg n j I T STEM Report. Nathan, Thanks Karen. We are live from the Bloomberg Interactive Brokers studios where it's just about six fifty one on Wall Street time now to check

what's going on in VC. Some of the top stories in our nation's capital include President Biden, Governor to Santis playing nice and Ian ravaged Florida President facing a new political headache with opex production cut, IBM unveiling that twenty billion dollar investment in New York when the President makes a stop there, and Janet Yellen calling for a World Bank over hall speaking Bloomberg Government reporter Jack Fitzpatrick for

more on some of these stories, Jack, Good morning. So the President and the governor of Florida managed to bury the hatchet at least for a bit yesterday. Yeah, it was clearly in both of their interests to be seen as being as responsive as possible to the destruction from Hurricane Ian. Uh. This went off without too much of a hitch. You could read into the tea leaves of them potentially preparing to face each other in four in the presidential race. But there there even was some praise.

Biden said he thought that De Santis had done a good job. They said they'd been working hand in glove together. Uh. And the President extended the authorization for full federal assistance on emergency needs. So this largely went off the way you would expect the president to act in any circumstance in which a really destructive hurricane hit any state. How how long can we expect this sort of at least

show of cooperation to last. And I obviously they've got a long recovery ahead in I en, but there's not much time until we have a midterm election. Jack, Yeah, you know, the recovery from this kind of disaster comes in stages. There's things like getting water bottles to people who don't have access to water, making sure electric lines are are are repaired and electricity is available throughout the state,

those short term concerns. And then in the meantime, FEMA assesses the damage and and they get into a bit of a rebuilding conversation through grants. Uh. Democrats in Congress, who still control the House and Senate, and obviously the presidents of Democrat very much make a point of saying we support federal aid for any scenario like this. Sometimes they say that with a bit of a chip on their shoulder, because some Republicans, including the opposed certain measures

after Hurricane Sandy. But there would very likely be clear support in Congress for federal funds, not only for the short term stuff, but the long term rebuilding grants. I would not expect that to change at any point in the future. Now, while the President was on his way to Florida, we got that word from OPEC plus that they're going to cut production by two million barrels a day. Does this have the potential to be the kind of

October surprise that this president doesn't want. It's definitely bad news. I don't know if this would constitute an October surprise in the sense of one single event, Uh that that really shocks people right before an election. Uh, this is the kind of thing that you know, OPEC production being limited can have somewhat of a delayed effect. Uh, we'll see exactly how quickly this might lead to an increase some and gas prices. Uh. It really adds a weight

to something that's already been an issue. Cost of living is an issue broadly that that Republicans are hitting Democrats on in these mid term elections. If gas prices go up, it's not a new issue. It's something that's already been debated that a lot of people have already felt. Uh. So it is bad news. It's bad news for the US economy. It's bad news for Democrats, certainly on the

campaign trail. It's hard to tell exactly how and when this hits everyday people, but it's not something that Democrats are happy about. Well, is there anything more that the White House can do besides saying that they're going to put out more from the strategic reserve and kind of hammer gasoline companies about the gap between wholesale and retail prices. Is there anything further the White House can do? I mean, in this case, there have been hints at how they

might respond to OPEC countries. You know, you saw Senator Chris Murphy, who's close with the White House, among other lawmakers, raising the issue of US military aid to UH Saudi Arabia as a point of leverage. That would be uh, you know, a real point of tension if the US tried to open up those negotiations and those talks and and cast out as to the US is UH sort of defense and security relationship with a country like Saudi Arabia?

But that that would be an option, that would be a heavier option than just releasing more oil from the Strategic Petroleum Reserve. That's not something that the the White House has commented on though, Well, I guess the President is going to try to take the reins on the economic message with this trip to New York and IBM facility. Tell us more about that. Yeah, In this case, IBM is going to announce plans to invest twenty billion dollars in the next decade. This is going to happen during

a visit today by the President to their campus in Poughkeepsie. Uh. This ties in very clearly to the Chips Act that was enacted earlier this summer. That is something that the President is going to be touting on the campaign trail. That's that's one of the big accomplishments that Democrats want people to know about. That's a bit a bit abstract your everyday people in terms of what semiconductors are in

their importance to the economy. But when you hear a significant number like that U twenty billion dollar investment by IBM among other companies with with similar announcements, that's something that the President is going to want to play up. And just thirty seconds left here, what's this overhaul at the World Bank that Treasury Secretary Yellen is gonna be

talking about tonight. She is going to make the case that I know some other people have made that the World Bank is unnecessarily limited in the way it lends UH, specifically saying that they should move beyond country specific loans UH, and that in cases of UH supporting clean energy projects where the benefit could go beyond the borders of a single country, they should not be quite as limited in in focusing on lending to a single country and requiring

that country to bear the costs and and UH and focus on the benefits of each project. So for pushing for the World Bank to take a broader view and lend more as well, especially for clean energy. Thanks Jack Bloomberg. Government Congressional reporter Jack Fitzpatrick with US this morning. Bloomberg Surveillance is up next with Tom Keene, Jonathan Farrell, and Lisa Bramowitz for Karen Moscow. I'm Nathan Hagar, and this is Bloomberg