Bloomberg Daybreak: September 23, 2022 - Hour 2 (Radio)

Plus referendums begin today in Russian occupied Grainian cities. I'm Michael Barr more ahead, and I'm Scott Sedenburg. The chase for sixty one will have to wait another day. All

that and more coming up in sports. That's all s train ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, Bloomberg Ninete one, Washington, d C Bloomberg one oh six one, Boston Bloomberg nine sixties and Francisco Syrius x M one nineteen and around the world Old on Bloomberg Radio dot Com and via the Bloomberg Business app. Good Friday morning, I'm Amy Morris, I'm Nathan Hagar. Futures

are moving lower this morning. We're coming up to six oh one on Wall Street, and we checked the markets every fifteen minutes during the training day. On Bloomberg, SYMP futures are down thirty one points now futures down two two. NASAC futures are lower by a hundred fourteen points. The tenure treasury is down eight thirty seconds. The yield on the benchmark three point seven four percent. Amy, Nathan, it

is all about the markets this morning. The S and P five on track for a second straight weekly loss. Yesterday it closed at the lowest level since June ten. Year treasury yields are trading near its highest level in a decade. The two year rate is climbing for eleven straight sessions now. Ryan Dietrich is chief market strategist at the Carson Grew. September is the worst months of the year when you're weak heading into it, like down teen per cent of the year like we were this year.

Septembers are really really rough and can be dicey. So sure the Fed matters, we're not ignoring that, but the stage was set, honestly for some for some potential weakness. Carson Group Chief market strategist Ryan Dietrich says the SMP five hundred is just two and a half percent above the low set in June, and there could be even more pain ahead. Amy one Wall Street firm says the selling is still not over. Let's get the story from

Bloomberg's Lisa Mateo. Goldman Saxes slashing its year end target for the SMP five hundred index to thirty six hundred from forty three hundred. That implies a four point two percent drop from yesterday's close. Goldman says a dramatic shift in the outlook for interest rates moving higher will weigh on valuations for equities. The higher interest rate scenario and Goldman's valuation model supports a price earnings multiple of fifteen

times compared with eighteen times previously. Goldman said the risks to its latest forecast are still skewed to the downside because of the rising odds of recession, a scenario that would reduce corporate earnings and wide in the yield gap. However, the bank strategists say a year end rally TOD is possible if inflation shows clear signs of easing in New York Lisa Mateo Bloomberg Daybreak, Thank you Lisa. Meantime, cash

is king. Bank of America strategists say investors are flogging to cash and shunning almost every other asset class as they turned the most pessimistic since the global financial crisis. The bank says cash had in flows of thirty billion dollars this week, while global equity funds saw outflows of seven point eight billion dollars. There we saw more equity losses in Asia. Overnight. Amy stocks in Hong Kong led the declines. Let's get the details from Bloomberg's Juliette Sally.

In Singapore, the m c I Asia Pacific Index posted its sixth weekly decline, the longest streak since May. Equities with down Friday in Hong Kong, China, Australia and South Korea.

Japan was closed for a holiday. Alsie Bondi Old spiked the two year up by as much as twenty eight basis points, the highest since April twelve, and the off show you one continue to hold past seven to the dollar, despite the PBOC setting a strongly unfixed for a record twenty second day in Singapore, Juliette Sally Bloomberg Break, Thanks Juliette. The sell off is also continuing in Europe, where the

region is poised for another weekly lost for stocks. Let's get the details with Bloomberg's You and Parts in London. Good morning you. European stocks declining today at the end of a week that made very clear that central banks are not done yet. You have stocks these hundred now down one percentage points, with energy shares leading losses. Adding to that decline not for the first time, credits Swiss

shares slumping to a record load today. That's after the troubled Swiss Bank was forced to deny report that it's considering exiting the US. Markets and banking also in focus in the UK government's mini budget today, the cap on bankers bonuses inherited from the European Union is to be scrapped, a planned increase in corporation tax also to be scrapped, and the top rate of income tax that is going as well in London. I'mun Parts, Sploomberg, day break, You

and thanks. Higher interest rates around the world have oil on track for a fourth weekly decline. Crude is poised for its first quarterly last and more than two years as concerns about a global economic slowdown way on demand. Checking prices now name X cruds down two point two per cent or a dollar eighty five at eighty one dollar sixty four cents of barrel. Brent is down two percent at eighty eight dollars sixty five cents, but Nathan

those losses for oil maybe short lived. Some of the Wall Street's biggest banks see crude rebounding in the fourth quarter. JP Morgan Chase forecasting Brent crude at one d one dollars a barrel the final three months of the year. Goldman Sachs is targeting one five dollars Brent trading around ninety dollars today. Analysts say low inventories and sustained demand will keep prices elevated despite concerns of a global slowdown.

We have COVID news out of Asia this morning. Amy Hong Kong is announcing plans to cut pandemic rescription prescription restrictions sorry scrapping hotel quarantines for inbound travelers. Starting Monday, those flying to the city will no longer need to take a PCR test before departing. Instead, they can take

a rapid test. They will still need to take PCR tests upon arrival, though that's turned to corporate news now Boeing is in focus, the company agreeing to settle an s e SEE investigation into safety issues on its seven thirty seven Max planes. We get details from Bloomberg's Jeff Bellinger. Boeing has agreed to pay two hundred million dollars to settle sec allegations that the company and former CEO Dennis Mullenberg failed to disclose issues with the seven thirty seven

Max jetliner. Muhlenberg will pay one million dollars as part of the agreement. Regulators say Bowing and Muhllenberg did not reveal safety problems with the seven thirty seven Max, which was involved in two crashes that killed three hundred forty six people. The twin tragedies prompted one of the longest

groundings in aviation history. Boeing previously paid a two hundred forty three million dollar fine as part of a two and a half billion dollar settlement with the US Justice Department to end a criminal investigation that was in January of twenty one. Jeff Bellinger, Bloomberg Daybreak, Jeff thanks FedEx's cutting costs and increasing rates. The giant package carries looking for as much as two point seven billion dollars in savings to deal with slowing demand and a tight labor market.

Last week, FedEx shares suffered their worst day in forty years after the company pointed out worsening economic conditions. SMP futures are down thirty one point, staff futures down two nine, NASTAC futures down a hundred thirteen local headlines and a check of sports. Next, This is Bloomberg right, Thank you, Nathan. It is six oh seven on Wall Street. We bring in Michael Barr now to find out what else is going on in New York and around the world. Good

morning Michael, Good morning Amy. New York City health officials believe five people have died in a Manhattan nursing home of Legionnaire's disease. The outbreak over the past year took place at the Amsterdam Nursing Home in Morningside Heights. Already say four deaths have been confirmed to be connected to legionnaires.

Officials are investigating the fifth depth. Florida Governor Ran De Santis is being sued by a state lawmaker for allegedly wasting hundreds of thousands of dollars and state funds to apply dozens of Venezuelan migrants to Martha's Vineyard, Massachusetts, where critics have called a political stunt that trigged vulnerable immigrants. Florida State Democratic Senator Jason Piso from Miami also asked the court to stop the Santis from transporting any more

migrants to other states. Meanwhile, De Santis says about ten thousand dollars paid to an aviation company to fly migrants to Delaware has not been put to use. He was vague, though, about payments for sending migrants north. The policy is we want to voluntarily transport away from Florida so that we don't have to bear the costs, and that there's a vendor that is doing that for US. Governor De Santis made his comments at a news conference in Miami Dade.

Voting has begun in Moscow held regions of Ukraine on referendums to become part of Russia. Ukraine in the West have denounced them as shams without any legal force. The referendums follow President Vladimir's putin order to have partial mobilization that could add to about three thousand Russian troops to the fight. Former US Ambassador the Ukraine, William Taylor says Putin is looking for ways out of the war now that Ukrainian advances have made peace talks less likely. He's

running out of soldiers. He thinks by instituting this draft or this call up, he may be able to replace these soldiers that he's losing day after day on the battlefield. Former Ambassador Taylor spoke to ABC. NASA plans to slam a small, harmless asteroid as an experiment, a spacecraft name DART for double Asteroid Redirection test. Weill zero in on the asteroid Monday and tent on slamming it head on

at fourteen thousand miles Brauer. Scientists say the impact should be just enough to nudge the asteroid into a slightly tighter orbit around its companion, space Rock. NASA scientist Tom Stadler, at the end of the day, the real question is how effectively did we move the asteroid and can this technique of kinnectic impact be used in the future if

we ever needed to. NASA's Tom Standler says the asteroid is about six point eight million miles away Global News twenty four hours a day on air and on Bloomberg Quick Take Power by more than hundred journalists analyist more than a hundred twenty countries. Michael Barr, this is Bloomberg. Amy. All right, thank you, Michael. It's six ten on Wall Street. Time now for the Bloomberg Sports Update. Here's Scott Seidenberg.

Good morning, Amy. Yankees fans will have the waits another day before seeing Aaron Judge hit home run number sixty one. Judge went over to last night with three walks and a strikeout, but the Yanks got to win five four over the Red Sox in ten innings on Josh Donaldson's fourth walk off hit of the season. It's the yankees sixteenth walk off win. That's one shy for the most walk off wins in a single season in Yankees franchise history.

Here was Donaldson after the game. You know seven a couple of times this year, so you know, it doesn't it doesn't. With the win, the Yankees officially clinched a postseason spot, and Aaron Boone becomes the first manager to reach the postseason in each of his first five seasons. The Yankees have a seven and a half game lead in the A Out East over the Toronto Blue Jays. NBA Who's The Boston Celtics have suspended head coachma who Duke up for the upcoming season the team, citing violations

of team policies and its announcement. Assistant coach Joe Missoula takes over in the interim. Week three of the NFL kicked off last night, the Browns defeating the Steelers twenty nine seven team. On Sunday, the Jets will welcome in the Bengals. The Giants host the Cowboys on Monday Night Football. I'm Scott Seedinberg with Bloomberg Sports. Amy all right, thank you, Scott.

Futures are lower, SNP down thirty three points, dal features down two Hunt four, Nasdaq features down one hundred nineteen points. Ten year Treasury down nine thirty seconds, the yield at three point seven five percent, the two year yield at four point one eight percent. Still ahead on Bloomberg daybreak, Oil headed four or fourth weekly decline. This is Bloomberg

Bloomberg eleven three oh Weather sunny and breezy. We're going up to sixty five degrees today with plenty of sunshine tomorrow going up to seventy degrees, could see rain on Sunday going up to seventy five. Markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quick Tape. He's a Bloomberg Business Flash. I'm Nathan Hagar. Global bond yields

are surging. Stocks are extending their declines at the end of a week that underscored expectations for tighter monetary policy and a slowing global economy. We checked the markets every fifteen minutes during the trading day. On Bloomberg SMP futures are down thirty one points down futures are lower by two thirty four and NASTACK futures on the decline by one sixteen points, a drop of one percent. The tenure Treasury is down seven thirty seconds, the yield three point

seven four percent. The yield on the two year four point one seven percent. NIMEX screwed is down two point three percent, or a dollar eighty one dollars fifty seven cents a barrel comes golled down one percent or sixteen dollars. At sixteen sixty five, ten announced the euro point nine seven six five against the dollar British pound one point one one to two. The yen is at one forty two point seven four. Bitcoin is lower by seven tenths

percent at nineteen thousand, one hundred dollars. That's a Bloomberg business flash. And now here's Michael Barr with more on what's going on around the world. Michael Heathan, thank you very much. The Special Master in the case of documents sees from Donald Trump's Florida homes says the former president's lawyers have to state in a court filing whether they believe the FBI line about the items. Judge Raymond Deary

told Trump's legal team that they have until September. Residents and occupied parts of Ukraine begin voting today and a Russia run referendum on joining Ukraine. The vote has been why Lye condemned as a sham. In baseball, the Yankees beat the Red Sox five for clinching a playoff birth He came close, but Aaron Judge fell short of telling Roger Marries a le record of six one on runs.

The Orioles and Giants won the A's lost. Thursday night football, the Browns beat the Steelers twenty nine Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists and analysts more than a hundred twenty countries. Michael barn this is Bloomberg Gaming all right, Thank you, Michael. It is six twenty on Wall Street. We're live from the Bloomberg Interactive Broker Studios.

This is Bloomberg day Break. Oil is headed for a fourth weekly decline after interest rate hikes around the world darkened the outlook for energy Deman joining us Bloomberg Senior Executive Editor for Energy and Commodities, Will Kennedy. Well, good morning to you, Thanks so much for taking the time with us on this Friday morning. We know crude is on track for its first quarterly loss in more than

two years. What are you watching for? Well, I think the oild market right now is called in a battle between macro and economic factors and the nuts and bolts of the oil market. On the macro side, the price has been facing huge hedge winds as policymakers around the world raise interest rates, raising fears of an economic slowdown, and the dollar strength and dollar strength is normally inverse

to oil oil goes in the other direction. So it's been battling those head winds and right now those headwinds are winning. But it's not clear whether that pattern will hold as we go in towards the winter. Globally, supplies remain very tight. People are producing a maximum or close to maximum all over the world, and global stock piles are falling. So there is a view that this slump could reverse as we get into the winter, when oil demand tends to rise. Let's get into that a little bit.

Some banks saying that there could be a rebound for oil in the fourth core. Some details about how that might work. Well, you get a bump in demand are you go into the winter some the world, Japan, Northeast, US, parts of Europe which use oil for heating, that boost demand for Middle Distonance diesel UH and jet fuel around the world. Um, So that tends to be a bullish factor, and all the more so this year because alternatives such as natural gas in Europe especially are incredibly expensive to

those people who can use oil will use oil. There may be also industries that switch out of gas into diesel diesel generators that that will be more to supply m and then a lot of the One reason the old market has stayed under control in recent months is this massive supply of oil ou to the strategic Petroleum of Reserve in the United States. It's not clear how much more oil or keep coming from the SPR and that could change the balances on the supply side as

demand arises. Well, let's talk about what's driving the volatility in these markets, in the oil markets, and what could settle things down. When are we going to see a break? Well, that's a good question. I mean, I think one thing about one observation we could make about their old market is liquidity is down. There aren't as many people trading oil um, and that's because there are a lot of investors who feel that the volatility um it's an attractive

to them. And the fewer people you get, the more um, the more volatile it is. Less liquidity means more volatility, and it's a bit of a self perpetuating cycle. So

that's one reason. The other reason is that's just the sheer volume of factors that pulling the markets in different directions, everything from politics and the war, to OPEC policy, to all the financial and macro economic background that I've just described and I don't think there's any reason, given the flow of events, are seeing the moment for that to end anytime soon? Are we looking at a perfect storm of events that you just described. I mean, give me

an historical perspective if we've ever seen this before. I mean, the oil market has gone through some video dramatic times before, in the pandemic, we saw negative old vices in the global financial crisis, the Varna ark War. But I do think that, uh, it's a particularly interesting time because you have these enormous geopolitical events combining with really big events

in the market. People trying to contend with the prospect of a slowdown on recession on the one hand, and the real risk to supply that we're seeing because of the war war in Ukraine, and the confluence of those two very big things, I think is makes it one of the most mentors our markets. And sometimes how much

of an impact is the war in Ukraine? And I asked because we got word this morning that Russia is looking to boost its military industry complex by forty some odd percent, which indicates that they plan on being in Ukraine for a long time to come. Yeah, I mean, I think what markets are looking for is two things are going to happen. Europe is going to introduce a ban on importing and oil and that will change the

flow of Russian oil all around the world. And traders are very interested to know whether Asian bias who have kept buying Russian oil and have increased their purchases vassional principally India and China, could increase their purchases further, whether that banned by the European Union means that some mushan i will just won't find a market and production will.

For the other thing that we have going on policy wise is this idea that the G seven would impose a price cap on Russian oil, and that's an attempt to make sure the oil keeps flowing, but in a way where Russia doesn't really benefit from higher prices. Lots of skepticism about how that will work, but if it's introduced, it will have some impact. So both of those things, I'm introducing a lot of uncertainty into the market as

we go into the crucial winter months. All right, well, thank you so much for taking the time with us on this morning Friday morning. Will Kennedy is senior executive editor for energy and commodities for Bloomberg News futures are lower. S ANDP down thirty eight points, STUT futures down two three, NASAC futures down on seven points. Much more still to come. On Bloomberg Daybreak. This is Bloomberg Bloomberg eleven three oh weather sunny and breezy, going up to sixty five degrees.

We'll see seventy degrees with sunshine tomorrow and then on Sunday at chance of rain going up to seventy five degrees. Broadcasting wide from the Bloomberg Interactive Broker's studio in New York, Bloomberg E Living Free on to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg sixty to the Country Sirius XM Chad A one nine and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's six

thirty on Wall Street. Good Friday morning. I'm Amy Morris, I'm Nathan Hagar. We are about three hours away from the open of US training to I'm for the five things you need to know to start your day. Brought to you by Interactive Brokers. Global Analysts helps you find new global investment opportunities to diversify your portfolio and discover undervalued companies that may have greater growth potential. Try i b k OUR Global Analysts today at i b k R dot com. Slash g a up first. The SMP

five hundreds on track for a second straight weekly loss. Yesterday, the index closed at its lowest level since June, as higher interest rates continue to hit sentiment. Jess meant and covers equities for Bloomberg News technology sector, looking at discretionary shares. Also industrial companies really coming under pressure following what happened with that sell off after the Fed's move, but also

more globally, this isn't even just the FED. Investors are really trying to digest what's happening because it's been over five basis point moved by global central banks right now getting aggressive to tackle what's happening with inflation, and traders really trying to reprice. Bloomberg's jessment and says it appears investors aren't expecting the FED to cut rates until sometime next year, and there could be more pain ahead. Nathan when Wall Street firm says the selling is not over.

Goldman SATs is slashing its year end target for the SMP five hundred to thirty six hundred. That's down from forty three und You're watching the dash to cash this morning. Amy Bank of America strategist say investors are flocking to cash as they turn their most pessimistic since the global financial crisis. Jennifer Lee, senior economist with BEMO Capital Market, says firms like hers are lowering growth forecast, but still

there is strength in the labor market. We've actually been lowering our growth forecast deadly like everyone else, and we've actually got dual growth now three we still have only one quarter of negative growth. I guess the big difference here in terms of recession is the labor market. You know, anyone who has multiple job offers out there, you don't

take one because it's not gonna last. This is all from personal with What happens is when is a central bank who is aggressively tightening, You're gonna see that flower growth, You're gonna see it hit consumers spending, and you're going to see the doubles rate to caire. Jennifer Lee with BEMO Capital Market says she expects unemployment to continue to rise in the coming months. Stocks in Europe and Asia

are lower this morning, so is oil. Crude is on trapped for a fourth weekly decline and could record its first quarterly lost in more than two years. Nanamy. Hong Kong's announcing plans to cut COVID restrictions, scrapping hotel quarantines for inbound travelers. Starting Monday, those flying to the city will no longer need to take a PCR test before departure instead of rapid test will suffice, but travelers still

will need to take a PCR upon arrival. There's still banned from going to bars and eating at restaurants in Hong Kong. That's the five things you need to notice start your day. Brought to you by Interactive Brokers, Futures on the Decline, this morning, straight Ahead, your latest local headlines, and a check of sports. This is Bloomberg, all right, Thank you, Nathan sixty three on Wall Street. Now we bring in Michael Bard to tell us what else is

going on in New York and around the world. Good morning, Michael, Good morning Amy. Health officials suspect five people have died in the Manhattan nursing home of legionnaire's disease. The outbreak over the past year to took place at the Amsterdam Nursing Home in Morningside. Heights for depths have been confirmed, while a fifth is being investigated. Residents in Russian occupied parts of Ukraine began voting today in the referendum on

joining Russia. The vote has been widely condemned as a sham. Former US Ambassador for Ukraine, William Taylor says Vladimir Putin is looking for a way to ulster support for the war inside Russia. This is because Putin is losing support for this war that he wants to do some sleight of hand that says, well, actually this is really Russia, so now it's really the Ukrainians and the West against US.

Former Ambassador Taylor spoke to ABC. A man charged with assault for allegedly slapping former Mayor Rudy Giuliani on the back and using a derogatory term is suing New York City for two million dollars for false arrest. Daniel Gill was seen on a video in June touching Giuliani on the back with an open hand while Giuliani was at a Staten Island shop Right Supermarket, supporting his son Andrew's

campaign for New York governor. Hurricane Fiona has pounded Bermuda with heavy rain and winds as it sweeps by the island. Deadly protests are raging across Iran over the suspicious death of twenty two year old imsha Amani while in police custody. She was arrested by iran so called morality police because she was said to be wearing her head scarf improperly. Speaking through a translator at the u N, Irainian President Ibraham Rahisi said a mean he's death is still under investigation.

The rest assured that whether it's visa vida, deceased young lady or others, the Islamic Republic will not allow the trampling upon the rights of anyone. Rainian President Racy says he spoke to the woman's family. A new poll shows, despite his legal issue, support for former President Trump remains unmoved. According to a New York Times Siena College survey about voters viewed Trump favorably about the same as an earlier

poll in the summer. Meanwhile, Republicans trying to just dug high discussed the release of the House Republicans commit that to America agenda ahead of the midterm elections. I think Republicans have opportunities here to define themselves on three issues

even further inflation, UH, crime, and the border. And if if we're if the conversations on those three issues, even if Republicans don't have a fully fleshed out plan on inflation they don't and neither does the White House, then if that's what we're talking about, Republicans are going to

do well. GOP strategist High spoke on sound On, which airs at five pm on Bloomberg Global Things twenty four hours a day on air rand on Bloomberg Quicktake, powered by more than seven hundred journalists analysts more than a hundred twenty countries. At Michael bar this is Bloomberg. Amy, all right, thank you, Michael. At six thirty six on Wall Street Time now for the Bloomberg Sports Update. Here

Scott Edinburg, Good morning, Amy. Some excitement in the Bronx last night as fans thought Aaron Judge had home run number sixty one, although it felt shy being caught at the wall. The Yankees would go on to win a ten innings over the Red Sox five four, thanks to

Josh Donaldson's fourth walk off hit of the season. Here was Aaron Judge after the game that was blown out, But you know I just missed it, but I lined up for a nice It was the sixteenth walk off win for the Yankees this season, one shy of the most in a single season in franchise history. Tonight, Judge will get another crack at number sixty one when the Yankees and Red Sox face off again. Garrett Cole gets

the start. Rich Hill for the Red Sox. NBA news, the Boston Celtics have suspended head coach Email Udoka for the upcoming season the team's citing violations of team policies and its announcement. Assistant coach Joe Missoula takes over in the interim. Week three of the NFL kicked off last night, the Browns defeating the Steelers twenty nine seventeen. On Sunday, the Jets will welcome in the Bengals. The Giants host the Cowboys on Monday Night Football. I'm Scott Edinburg with

Bloomberg Sports. All right, thank you, Scott. It is six thirty seven on Wall Street Time to take a look at stocks and some of the names that are moving in the pre market. And for that we are joined by Bloomberg Radio and TV Markets correspondent Created Gupta created Good Friday morning to you. How are you well? Good morning Amy. There's a few stock movers I want to bring to your attention and really kick it off here

with with Costco. Actually, for our international audience. Costco is a retailer that I wish had more presents in New York City, a meddly um but but it's basically a retailer. It's a wholesale retailer. Economies of scale really works in their favor, things like buying in bulk for example. So when you are looking at an environment where people perhaps want to spend less, want to buy a little bit less, a Costco is going to be one of the stores, one of the companies that is in the firing lines.

The c O s t s your taker here down about three percent in the pre market. Is this actually coming after they make an announcement saying they're choosing not to raise their membership fees. That's coming amid record renewal rates in the company's fourth order um This is interesting because one of the things that a lot of retailers have been talking about is that even in the face of perhaps lower sales or lower volume of sales, at the end of the day, they are able to make

it up because the margin is increased. So I think Nordstrom, think Macy's. Perhaps people are paying less, but it's okay because the prices are higher and therefore, net net, they make the same or or arguably even a little bit more. Costco doesn't have that same luxury because on this one hand, not only do they have to do you have to kind of pay up to get the economies of skills. So your unit price is lower um, but at the end of the day, you are still paying more um,

say on one given shopping trip. And that's something that kind of tends to put some of their customers away, just given that you also have to pay a little bit of a membership fee. So the fact that Costco isn't raising their membership fee. Amy weighing on those shares this morning about three Alright, tell us what else do you have, especially with doc you sign. That's something that's interesting that everybody has to deal with once in a while. Oh. Absolutely,

it's become all the rage post pandemic. I would argue three years ago, I didn't even know a lot they signed one CEO. C U. Is your ticker down about one eight percent? And remember the entire market is down, but the fact that this one is down almost two percent, uh is quite something. This is coming after Morgan Stanley, or excuse me, after they announced the board of director

had hired Alan Figason as the chief executive officer. There's a little bit of wariness in the market right now about simply a change in leadership for DOCU signs, So keep an eye on those shears down at one point eight percent. But I was mentioning about Morgan Stanley that actually has to do with advanced micro devices, which amy is the last move where I'm gonna leave you with here down about one and a half percent. Morgan Stanley trimmed their price target to nine from one hundred and two.

They're saying a worsening PC end market is not going to help their bottom line. They're also talking about a collapse in gaming um and perhaps some head was on the client business. Right now, the shares are trading around, so the price target still still seeing some upside. Nine but not quite as much as before. All right, Bloomberg Radio and TV Markets correspondent Creedy Coopta always a pleasure, Thank you so much for joining us looking at stocks

as a whole. Futures are lower. SNP down forty two now, DAL futures down three hundred sixteen points, Nasdaq futures down one hundred at forty seven points. Ten year Treasury down eleven thirty seconds to the yield at three point seven six. This is Bloomberg Bloomberg eleven three oh weather sunny and breezy as we go up to sixty five degrees, plenty of sunshine. Tomorrow going up seventy is gonna be nice

seventy five with a chance of rain. On Sunday, Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Victape Chris is a Bloomberg Business Flash. I'm Nathan Hagar. Stocks are plunging this morning. Let's head right over to the First Word Breaking news desk for today's morning call with film Aloney. Good morning Bill, Good morning Nathan. That's right.

Us features are plunging once again with doubt futures down three hundred thirty nine points has to be dropped forty six and NASDA futures declined by one fifty two. The US ten year old at three point seven six percent, the two years now at four point two percent. Gold is down fifteen, oil is trading lower, and bitcoin is down by point nine percent. Hong Kong fell one two percent overnight, while Europan markets are also under pressure, with two percent losses in Germany, Italy and Spain back in

the US. On the economic front, at night forty five, Manufacturing and Services p m I s after the Bells Night Costco report it shares it down three percent in the pre market, and an others. Goldman Sacks cut its year and target for the SNP two thirty six hundred from forty three hundred, and wrapping things up, Domino's Pizza raised to outperform at BMO. Data Dog was raised to

neutral over at JP. Morgan Live from the first Breaking News DOSCM Bill Maloney, Nathan Okay, Bill, thanks to get live breaking news over your Bloomberg type squawk on the terminal s Q you a goo, that's a Bloomberg business flash. And now here's Michael Barr with more. I'm what's going on around the world. Good morning, Michael, Good morning Nathan. In Russia, traffick is jammed that border crossing. Some crowds

are packed at airports. Most of those trying to get out are young men, a military age pleaing Vladimir Putin's draft after he called up three hundred thousand reservists for the war in Ukraine. Protests are also taking place in the streets in the NBA at the Boston Celtics suspended head coach in Udoka for a year for violating team policies.

In baseball, the Yankees beat the Red Sox five four, clinching a playoff berth Aaron Judge hit deep way back on the warning track, Yukon Cornelius nothing, it fells short, tying Roger Marris is a l sixty one home runs. They'll try again to night. The Orioles and Giants won the a LS lost. Thursday night football, the Browns beat the Steelers. Seen Global Nails twenty four hours a day on air and on Bloomberg quick Take, powered by more than seven hundred journalists and analysts and one in a

hundred twenty countries. I'm Michael bar This is Bloomberg. Navid Okay, Michael, thank you. We're at sixty nine on Wall Street. Let's turn the news and science and technology now. The Bloomberg n j i T STEM Report is brought to you by New Jersey Institute of Technology. N j i T is ranked top ten nationally on Money's Best Engineering Colleges List. What will You Make It n j I T. Learn more at n j I T dot e du now Here's what's making news and science, technology, engineering and math.

The UK government has formally confirmed it as lifting a ban on fracking in England, arguing the move will help boost the country's energy security amid Russia's war in Ukraine. Prime Minister Liz Trust announced within days of taking office earlier this month she would reverse a ban on hydraulic fracturing, and is a controversial technique that's used to extract oil and gas from shale rock. NASA plans to slam a small,

harmless asteroid as an experiment. A spacecraft named DART for Double Asteroid Redirection Test will zero in on the asteroid Monday, intent on slamming it head on at fourteen thousand miles per our. Sinus to say the impact should be just enough to nudge the asteroid into a slightly tighter orbit around its companion Space Rock and Apple Music will replace Pepsi as the presenter of the Super Bowl halftime show. Pepsi has had its name on the star studded intermission since.

According to Sportico, Apple may have paid as much as fifty million dollars a year for the five year deal. This year, more than one twenty million viewers watched Super Bowl Halftime. That's the Bloomberg and j I t Stem report. Amy, all right, thank you, Nathan. We're live from the Bloomberg Interactive Broker Studios. It is six fifty one on Wall Street Time now to check what's going on in d C. And some of the top stories in our nation's capital

include voting starting in four Russian occupied regions. President Biden says the Catholic Church is not as strict on abortion as Republicans are. Public safety bills have gone through the House and one support ahead of the mid term elections, and the Special Master asking the Trump legal team if they believe the FBI lied about documentaries from mar al Lago. There's a lot going on, Bloomberg Government reporter Emily Wilkins joins is now to sort it all out. Emily, thanks

once again for joining US. Voting underway in four territories in Ukraine. The Bignet administration calls us a sham election. What is the US response to all this? I mean that that that that basically is it what you just said. Secretary of State Anthony B. Lincoln has strongly condemned the vote, calling it a sham referendum. They see this as an

escalation of Russia's plans to annexed slats of Ukraine. This is really reminiscent of a similar twenty fourteen ballot in crimea At that led to to Russia attempting to to annex the territory. And of course this comes as we've seen a lot of tensions with Russia lately in Ukraine. There have been military setbacks for Russian troops and then Putin's decision to call a three hundred thousand reservists to fight in Ukraine. That has led to a number of

protests among the Russian people. So it really seems like we're we're Russia's at a point. Uh Putin is at a point where he is really struggling as far as what next steps are going to be. And and this is the environment that they are now holding, uh these votes today and uh you know already you know, Ukraine, Uh, the U S and a number of other countries just don't believe that this election is going to be legitimate in any way. Now Emily, has the Biden administration indicated

how far it is willing go to push back against Russia? Here? Are there any clear lines that they won't cross? I mean, I think these are the same lines that we've initially seen. They always said that they would not be sending US troops into Russia. That has remained the case, even as the US has given numerous amounts of aid, weapons, artillery shells, UM and has continued to encourage its allies to support Ukraine and to continue doing what they can to put

sanctions and to put pain on Russia. Um but at this point, yeah, we don't really. It's just sort of a continuation of what we're seeing there. Um, the US a sort of red line of not sending troops and has remained. Let's turn a Capitol hill now closer to home. President Biden criticizing Republicans for restricting abortion access and the President said that the Catholic Church is not as strict

on this as Republicans are. What's the response there. I mean, it was a bit of an odd statement to make us, especially because his point was that about the exceptions, um, exceptions for rape, incest and the life of the mother. It's one of the big things that we're really being talked about right now in the abortion in the abortion debate,

whether there should be exceptions made for that now. Actually, Senator Lindsay graham bill does include exceptions for rape ancestor to save the life of the mother, but Biden seemed to be implying during this speech that that Graham's bill did not, and that, um, the Catholic Church would would

you know, what, would want those exceptions in place. I think, really, Amy, what this speaks to is the fact that abortion is going to be a huge issue for Democrats, and then several weeks they've already seen how it can mobilize and turn out voters in Kansas, in New York, to a certain extent in Alaska, where Democrats have all not victories in recent months, and they think that this is going to be a really good issue for them, and so

expect to hear Biden other Democrats continue to talk about it, and expect them also to continue to show all Republicans as being extremists who don't support these exceptions, even though, of course there are many Republicans who who support these exceptions, just as Republicans will often try to model what Democrats stands on is a portion to make it seem more extreme than where most Democrats are. All right, so we're gonna see how this moves the needle during the mid terms. Meanwhile,

public safety bills have passed the House. You have a story about this on the Bloomberg terminal, tell us about it. Yeah, so this is an interesting package of bills here. Um, they deal with certain aspects like mental health, justice for victims of crimes. But it also would give additional funding sixty million dollars over each year for five years to smaller police departments. So police departments was less less than

twenty five officers, helped them with things like training and recruiting. Uh. There was a lot of debate over this particular piece of the legislation because you did have some very progressive members, namely the Squad, that said that they did not want to see additional funding for the police at this point being they did not feel that the accountability measures in the legislation were strong enough, and so that you saw a little bit of tension there, a little bit of

a division between the Democrats. At one point it looked like this, uh, this package might might actually not wind up coming to the floor at all. But Democrats did get it through. And this is really going to help a lot of more moderate Democrats go back to their constituents and say, hey, Republicans are trying to tell you that we're soft on crime. Look at this bill that

we just passed supporting police officers. And that's It's again, it gets wrapped up pretty quickly in the election year politics. Any chance it's gonna make it through. The Senate actually gotten the bill that deals with funding a small police department. The Senate component actually passed unanimously a couple of weeks back, and we know that Congressman Josh Gottenheimer of New Jersey is working with his Senate counterparts to reconcile those House

and Senate bills. That said, as far as the timeline here, Democrats have House Democrats have three days left before the midterms, So I would so while this bill might be able to get to President Joe Biden's desk. It doesn't seem likely that that would happen before the elections. Okay, Emily, one minute to go here. We want to talk about Mara Lago and those documents that were seized. What are you going to be watching for as this makes its

way through the courts. So one of the biggest things that just came out yesterday that is very interesting is that the special Master, that third party overseeing the documents, he has ordered President for former President Trump's lawyers to back up their out of court assertations that the FBI might have planted evidence on the property during their search. These I say, Judge Raymond Deer is basically saying, Hey, you've made these claims, you need to back them up.

We need to see any sort of evidence. On the one It's been really interesting to see how Derry has serve approached these documents, approached trumpeting Trump backed uh Judge Raymond Deary to be in this role, and yet the judge certainly has not been lenient on him or his legal team. Alright, Bloomberg Government reporter Emily Wilkins, want to thank you very much for bringing us up to speed.

There was a lot in there. Thanks so much. You can read more about these stories on Bloomberg dot com or on the Bloomberg terminal, and as a reminder, you can follow all of the latest on Bloomberg Radio in Washington. Bloomberg ninety nine one and one oh five point seven FM. H D two futures are lower, SMP down fifty one points, Dow futures down three hundred eighty NAZAC futures down one hundred seventy four points. Bloomberg Surveillance with John Keene, Lisa

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