Bloomberg Daybreak: September 27, 2022 - Hour 2 (Radio)

FETE officials remained hawkish in their fight against infliction. Double Line Capital's Jeffrey Gunlack thinks the worst global bond route in decades maybe over, and traders increased bets the pound could fall to parody with the dollar HURRICANEY and his gaining strength as it heads toward Florida. Plus, we've learned that it was a small tornado that sets down late Sunday on Long Island. I'm Michael larn More, I'm John fish Our in sports the Giant Stuff for their first

loss being Yankees lost in next Fannings in Toronto. That's All's Trady Head 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, Syrias, x M one nine Team and around the World Old on Bloomberg Radio dot com and via the Bloomberg Business App. And good morning. I'm Karar at Moscow. I'm Nathan Hagar. Bloomberg Daybreak is brought to you by SEI. Built on

advanced technologies and fifty years of innovation. SEI offers asset managers a comprehensive and flexible operations outsourcing platform. Go to se i C dot com, slash managers and US stock index futures are on the rise this morning at six oh one on Wall Street, and we check the markets

every fifteen minutes throughout the trading day. On Bloomberg s and P futures up twenty seven points, DAL future is up one dred fifty three and NASDAG futures up one D. Ten year Treasury up twenty three thirty seconds here three point three percent. Nathan hearing the rise in futures this morning follows the lowest clothes for the SNP fived since

December of ten. Year. Treasury yields are holding near their highest level since while the dollar has snapped a five day gain still, Daniel Gerard, multi assets strategist at State Street, sees more strength the head of the dollar as we get more bad news that's going to really hit the earnings growth and the earning growth potential, margins, etcetera. And there were just isn't um. There aren't a lot of good stories to find out here, and I think that

we're in a relative world. We've got to do our best. But US dollar looks like the UH the asset to hold right now on state streets. Daniel Gerard also favors equities over bonds going forward well, as fears of a global recession continue to swirl. Nathan, we have a couple more bearish calls on equities this morning, and we get the details from Bloomberg's Lisa Matteo. Goldman, SAX and black Rock are both warning that markets are yet to price

and the risk of a global recession. Goldman strategists, flagging rising real yields as a major headwind, cut equities to underweight in the US investment banks global allocation over the next three months. It's staying overweight in cash. Meantime, black Rock is advising investors to shun most stocks. It says that it is tactically underweight developed market shares and prefers credit in the short term. In New York, Lisa Mateo

Bloomberg daybreak at Lisa, thank you. The turmoil in market shows little sign of turning Fed officials away from hawkish policy. Boston FED President Susan Collins and her Cleveland counterpart Lorettamester say additional tightening is still needed to slow inflation. Here's Collins in her first public speech since taking office. Returning inflation to our two percent target will require further tightening of monetary policy, as signaled in the recent f o

MC projections. It will be important to see clear and convincing signs that inflation is falling. At the same time, Boston FED President Susan Collins says it's quite likely inflation may have peaked. There's at least one major investor who thinks the worst global bond route in decades is creating a buying opportunity. Nathan and a sweet double line. Capital's Jeffrey Gunlog says, quote the US treasury bond market is rallying.

He says he's been buying. The British pound is stronger today care and after it hit a record low Monday's still traders are increasing that sterling could fall to parody with the dollar. Let's go to London and get the latest with Bloomberg's You Win Parts, Good Morning, Karen Nathan. The pound and guilt recovering some ground today after that historic sell off. Sterling rallying after collapsing to a record

low against the dollar on Monday. The UK market's still vulnerable after the plunge that followed when new Chancellor Quasi Quartering unveiled the country's biggest fiscal giveaway in half a century. He said to meet top bankers later today. It may not be the warm reception that he was originally hoping for. In London, I'm you and parts bloom Boke daybreak, are

you and Thanks? In Asia, overnight starts traded slightly higher despite yesterday's so often that you were so we get the reach out from Bloomberg's Juliet Sally and Singapore Good morning, Juliet, Good morning Karen. A gauge of the region's equities fluctuated as shares edged higher in Japan and Australia, while Hong

Kong stocks traded at an eleven year low. Bonds remained under pressure in Australia and Japan, where the yield on the twenty year topped one for the first time since prompting the Bank of Japan to announce another unscheduled bond buying operation, this time at the long End in Singapore. Juliet Sally Bloomba daybreak. All right, Juliette. Thanks back here.

In the US, gasoline prices have fallen from their peak this summer, but they are still weighing on the White House, and that has President Biden sending a message to fuel companies prices products. President Biden spoke at a meeting of his White House Competition Council. Oil prices fell more than

nine percent last month. Gas has followed suit, but the President says prices are uneven across the country, especially in the West, due to low refining capacity and checking oil prices now, nime X screwed is up one point two per cent, or eighty nine cents at seventy seven dollar sixty cents in barrel. Brent is hired by one point

four percent at eighty five dollars twenty two cents. Meantime, like Capitol hillmath and the possibility of a government shutdown looms this week and now send A, Democrats have released a short term funding bill to try to avoid a shut down. Bloomberg's Amy Morris has a details from our newsroom in Washington. The bill would keep the government open through December sixteenth. It includes the measure that will speed up energy project permits, something that's opposed by Republicans and

some Democrats. Congress can strip that out if it's a deal breaker. It provides twelve point four billion dollars in Ukraine aid. It includes two billion dollars for disaster aid and another billion dollars for home heating assistance. It allows the FDA to collect user fees for five years to prevent a funding shortfall at the Food and Drug Administration. Congress must pass the measure by midnight Friday. In Washington.

I'm Amy Morris, Bloomberg Daybreak. All right, Amy, thank you, and corporate news of Biogen whistleblower will collect almost two hundred fifty million dollars for exposing a kickback scheme. The company agreed to resolve the matter by paying the US and state governments nine hundred million dollars. The False Claims Act allows individuals to sue on behalf of the US and get a cut of any money recovered. And futures this morning are on the rise. SNP futures up thirty

points down. Future is up one hundred seventy one and nasday futures up one d ten year treasury up thirty seconds. You three and he yelled on the two year four point to five percent and a straight ahead. We have your latest local headlines, plus a check of sports, and this is Bloomberg, all right, Karen, thank you. At six o seven on Wall Street, sixty one degrees in Central Parks.

Still got problems getting to JFK Airport. He's found Nassau Expressway has got an accident at the Van wick More coming up in traffic first, Michael Bark with what else is going on in New York and around the world. Michael, thank you very much. Nathan hurricane in his gaining strength on a path towards Florida. It is threatening to become the worst storm to hit Tampa in over a century. The National Hurricane Center says i End is now a

Category three storm. Mandatory evaculations are in parts of Florida. State Emergency Management Director Kevin Guthrie is in Penellas County. We do have telephone companies on standby, ready to store critical cellular service of power's loss. But in the meantime, Florida should be prepared to have a communications plan in place with her families. Bloomberg meteorologist Rob Carolina has the latest on Ian Michael. Hurricane Ian made landfall over western

Cuba earlier this morning. Is a major hurricane with sustained winds of a hundred and fifteen miles an hour. It will re emerge in the eastern Gulf of Mexico later this morning and then re strengthen and work its way up towards the Tampa area. Looks like it will be making landfalls somewhere in Pinellas County late Wednesday night or early Thursday morning, and the problem with the storm is

it will be very strong at that time. It's also going to stall out and it looks like it is going to rate the Tampa area for maybe twenty four to thirty six hours with high winds, heavy rain, and storm surges. Michael, Rob, thank you, sir. We're learning that a small tornado touched down on Long Island last Sunday night. The National Weather Service has an e F zero twister

hit part of Suffolk County around eleven pm. They say the tornado had an estimated peak wind of seventy five miles per hour when hit the town of Mattatuck no serious damage. Five days after President Vladimir Putin announced the partial mobilization to call up hundreds of thousands of reserves to fight in Ukraine, the move continues to trigger outrage protests across a Russia. It has also led to an exodus of men of fighting age from the country and

acts of violence. NASA deliberately crashed a dart spacecraft into the small moon of an asteroid seven million miles away from Earth in an attempt to change its orbit. Planetary scientists Emily Lakdawa says this is the first time that humans have altered the path of another object in the Solar System. Well, this one poses no threat to us. It does give us the first experience and understanding how we could prevent a, you know, civilization devastating threat if

discovered in the future. Planetary scientists Emily like Dwala says it will take NASA a couple of months to determine exactly how much the asteroids path was changed. Global News twenty four hours a day on air end on Bloomberg quick Take, powered by more than seven hundred journalists and analysts more than a hundred twenty countries. I'm Michael Bart. This is Bloomberg, Nathan. Thank you, Michael. Almost six ten on Wall Street, time for the Bloomberg Sports Update with

John Stashown. All right, Nathan, the Giants we're looking for their first three and those starts. In two thousand nine, when se Kwan Barkley scored on a thirty six yeard run on the third quarter of the Giants had a seven point lead, but Dallas scored the next seventeen. The Cowboys won three to sixteen, and both teams are two and one. Big Blue done in by a familiar problem, the inability to protect the quarterback. Daniel Jones was sacked or at least harassed over twenty times. Jones's coach is

Brian day Ball. He did a good job. So he made a lot of loose plays and only had what about eight yards Russian. I thought he did a good job keeping his eyes down feel when he could get out. You know, he made a couple of plays there at the end, you know that we couldn't quite convert on had some drop passes. Um you know the last play that that Dick's picked off still fell down and it was a timing throw that was interception that sealed the

win for the Cowboys. It was the only turnover of the night, and on that place, Stirling Shepherd suffered what looks like a serious knee injury for Props season, ending the white Out the longest tenure Giant. He's made it back from an achilles injury last year. The NFL announced no more Pro Bowl. They'll play a flag football game, have a skills competition instead in Toronto. The champagne that was in the Yankee lockeron will have to wait to

be popped open. The Yanks did not clinch. The Al East had a two nothing laid but lost in ten and as three to two and ends the Yanks seven game winnings dreak. It's the sixth raight game where Aaron Judge has failed a homer. So his mother, Roger Maris Jr. Back again tonight see if Judge hits home run number sixty one to time Marris. Atlanta want eight nothing at Washington, so with eight games ago, the Braids are one game

behind the Mets, who hosts Miami tonight. They go to Atlanta this weekend and they'll obviously go a long way towards the siding. Who wins the n Ell East John stash Our Bloomberg Sports al right, John, Thanks. Futures are moving higher. The British pound at one point zero seven eight five against the dollar. We talk current season next with Jane Folly of Robbo Bank. This is Bloomberg Bloomberg eleven three or weather, sunshine and low seventies today, We'll

get down to the mid fifties tonight. It will be sunny with a high near seventy. Tomorrow upper sixties, mostly sunny on Thursday. Right now sixty one degrees in Central Park. Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business apt and at Bloomberg Quick Take. This is a Bloomberg Business Flash and I'm Cameron Moscow and global markets do remain on edge as investors brace for a heightened risk of global recession,

even as dip buyers are emerging. US DOCK index futures their higher lead by Technology Nownsday futures. They're jumping up a hundred twenty seven points, up one point one percent. Right now, SMP futures of thirty one and down futures of a hundred eighty nine. The decks in Germany is up three tenths of upper cent. In your treasury of twenty five thirty seconds, you have three point eight two percent, and the yield on the two year four point two

four percent. Nime X screwed oil is up one point four percent of a dollar nine at seventy seven dollars eighty cents of barrel coma scold up half percent or eight dollars thirty cents a sixte The euro point nine six two zero against the dollar, British pound is at one eight and the yen one point three four. And look at a bitcoin, it's up five point eight percent now at twenty thousand, two hundred dollars. That's a bloomberg business flash. Now here's Michael Barrow with more on what's

going on around the world. Michael Karen, thank you very much. Hurricane Ian makes landfall in Cuba en route to Florida's West coast. Ian is a Category three storm and his forecast to grow into a Category four with top wins of one forty miles an hour. In Japan, world leaders and members of the public paying tribute to former presidential Zohabe assassinated in July, but thousands of protesting the large scale state funeral, saying taxpayers dollars should be used instead

to address widening economic disparities. They say we're caused by Abe's policies. In Monday Night Football, the Giants lost to the Cowboys sixteen and baseball, the Yankees lost to the Blue Jays and ten innings three to Aaron Judge still stuck at sixty home runs as he chases Roger Maris sixty one, a l record. The Orioles beat the Red

Sox fourteen eight, the Nationals lost. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven under journalists and analysts and more than a hundred twenty countries. I'm Michael Barr, and this is Bloomberg NACOLN All right, Michael, thank you. We're at six nineteen on Wall Street, live from the Bloomberg

Interactive Brokers Studios. This is Bloomberg a day break. We want to take a focus now on the currency markets, particularly after the wild moves we have seen in the pound over the last couple of days. Joining us now is Jane Foley, the head of f X strategy at ball Bank. Jane, it's great to speak with you once again as we watched the pound now headed for its biggest rally in months, but that's coming off. It's all

time low now at a one oh eight handle. What is the risk that you see for the pound falling to parody against the dollars. I think it's far greater than it was just a week ago, and that is because of the budget and the course markets reaction to the budget that we had in the UK on Friday. We've got to remember, although sterling has bounced off, you know, it's all time low, it's still considerably weaker than it was just a few weeks ago. It was trading above

at one twenty not so long ago. And of course, the factors that drove those gyrations over the last suit few sessions essentially remain in place. That the government has really damaged its credibility in terms of its fiscal policies, and at the same time, what's been driving sterling lower all year in terms of lack of growth or sessionary fears, low productivity, lack of investment. They're all factors which remain very much in place. Are you expecting more volatility than

when the Chancellor goes before financial leaders later today. I think that's almost inevitable. I think we're going to have volatility,

you know, for some time. I mean, volatility and effects has certainly been a theme this year, and I think it can be associated very broadly with central banks, particularly the FED, you know, lists in the comfort blanket of of quantity of easy and tightening policy, and certainly in the UK given the uncertainties that we have now in terms of debt, fiscal position um and also to the extent that the Bank of England maybe a hiking interest rates coming on top of the cost of living crisis,

coming on top of the fact that we've got this huge current account deficit too. They are all factors which all pushed together and indicate that further volatilities is likely to remain in place for some time now. We've heard from the Bank of England, of course they're pledging to change interest rates by as much as needed, kind of signaling that they might not necessarily step in and change interest rates before their next meeting. Do you think there

needs to be more intervention from the VOE. Well, there's a difficulty here because you've got to remember that whilst the Bank of England has been hike in interest rate, it's really since the end of last year. For most of that time it's had very limited effect in pushing sterling high. And of course the strong dollar is part

of that story. But you know, investors perceptions of the UK that the poor growth outlook, the high inflationary out of the low the low productives to all of these fundamentals have meant that sterling has not been very responsive

to interest rate hikes. Now, had the Bank of England come out yesterday with an interest rate high because many investors thought they may have done well, it would have potentially risked its credibility because had that not worked and stabilizing the pound and the Bank of England could have found itself in an in a cat and nice game really with the markets and that could have just impacted its credibility. So it's it's it's staying relid of lee calm.

It's it's trying to wait until it's November the third schedule policy meeting. But at that point I think we can expect probably quite a hefty interest rate hike in our last minute here Jane I'm curious to get your view on the Euro now with the right wing government set to take over in Italy. Well, indeed, of the euro has certainly been under pressure too. I mean, Sterling has certainly taken a lot of attention, but the Euro

is certainly very very soft now. The hawk is comments chief in the the et be in recent weeks, I've had some limited upside. Now the markets will be watching politics, particularly in France going forward, because you've had La Pen on the edges of government almost winning support really for

a number of years. But what we must remember though is since Brexit, um, well, some of that anti EU sentiment and the rest of your has dulled to some extent, and we've got the euro well below parody against the dollar at this point. Do you think it has further to go? And if so much, well, our forecast has been around ninety five, and so we do think it could fall further. Gas supplies or gas storage is is pretty good at the moment in Europe, but we still

got to face a winter. If the winter is cold, if they do have rationing, we could have a recession. You know, there were significant hurdles to face for Europe and at the same time. Of course, dollar strength is still there and we think dollar strength could sustained. We got good a few months yet and we've got a handle of ninety six for the euro against the dollar nine six two five. Jane Folly as always great to

get your thoughts on the currency market. Jane Folly, head of FX Strategy at Robbo Bank, and checking the British pound once again after hitting that all time low overnight on Monday morning, we are at one point zero eight zero eight against the dollar. That is a gain of one point one percent on the session. S and P futures are up thirty five point. Staff futures are higher by two hundred seventeen in NASDAC futures leading the gains

this morning up one d dy nine points. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather, sunshine and low seventies today down to the mid fifties tonight. It will be sunny and a little cooler tomorrow, high near seventy,

upper sixties. That's all we'll get Thursday, right now, sixty one in Central Park, broadcasting live from the Bloomberg Interacted Broker Studio in New York Bloomberg eving to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country Sirius XM Cho one nine team and around the globe the Bloomberg Business app in Bloomberg Radio dot com. This is Bloomberg Daybreak. It's

six thirty on Wall Street. Good morning. I'm Nathan Hager and I'm Karen Moscow, and we're just about three hours away from the open of US trading. Time for the five things that you need to notice start your day. And at first, global markets remain on edge as concerns

swirl about a global recession. Futures are higher following the lowest clothes for the SNP five hundreds in December of Bods remain under pressure from the worst sell off in decades, but the ten year treasury yelled, hovering near the highest level since and the Biggerish pound is stronger today care and after it hit a record low on Monday, but speculators are still betting that sterling will slide to a level that was virtually unthinkable in recent decades. A dollar

or even less. Kid jukes is chief effects strategists associated general. This is a loss of confidence at least to some degree in policy because normally, I mean President Reagan and Paul Volker managed to put rates up in enormous amounts in Theese fiscal policy dramatically and sent the dollar to the moon at one level, the UK Chancellor of the Bank are England doing the same thing and sending it

to the floor. Those comments from kid Jukes come as bets against the pound now show a forty three chance of parody with the dollar before years and time. Nathan Goldman, Sachs and black Rock are turning more bearish on US equities, at least for the short term. Both war in that markets have yet to price in the risk of a global recession. Goldman is cutting equities to underwait over the

next three months. Black Rock is advising investors to shun most stocks, and the turmoil in market shows little sign of turning FED officials away from hawkish policy. Karen Boston FED President Susan Collins and her Cleveland counterpart Loretta Master say additional tightening is still needed. Here is the latest view from Mester. So the FMC is committed to using its tools to bring inflation back down to our long run golf too percent. Last week, we took another decisive

action to remove monetary policy accommodation. We raised the FED funds rate by seventy five basis points. Cleveland Fed President Loretta Memester says she'd like to see inflation cool for several months before concluding that it's peaked. And Nathan, there's at least one major investor who thinks the worst global bond route in decades maybe ending. And a tweeted double line Capitals Jeffrey Gunlog said, quote, the US treasury bond

market is rallying, and he says he's been buying. And as the five things that you need to know to start your day, Futures are higher this morning, S and P futures up forty three points to down futures up two hundred seventy seven, and ASDAG future is jumping up one sixty four. That's up one point four percent, The ten year treasury down thirty seconds. You have three point eight one percent and a yield on the two year

four point to four percent. Nine ex screwed oil is up one point nine percent, and straight ahead, we have a look at your latest local headlines. Plus a check of sports, and this is Bloomberg. Thanks Scaring. At six thirty three on Wall Street. We're at sixty degrees in Central Park. We've got thirty minute delays getting through the Lincoln Tunnel after earlier broken down tractor trailer. More coming up in traffic first Michael Barr with what else is going on once you get in New York and around

the world. Good morning, Michael, Good morning Nathan. Hurricaney And has made landfall in Cuba as it roars on a path that could see it hit Florida's west coast as early as a category for hurricane by late Wednesday early Thursday. It is threatening to become the worst storm to hit Tampa and over a century, and Key West Mayor Terry Johnston says FEMA has been deploying food, water, and generators

to the storm zone. We have started our preparations about two days ago, and of course all of our residents are buttoning up their homes and then including storm shutters and taking anything that could be a flying projectile and high winds out of their yard. Mayor Johnston says, for now they have shut down City Hall. Ian is a Cat three for now, we're learning that a small tornado touchdown on Long Island last Sunday night. The National Weather Service says an e F zero twister hit part of

Suffolkonti in the town of Mattatuck, no serious damage. Vice President Kamala Harris continues their Asian trip today, meeting with regional leaders in Tokyo, Japan and attending the state funeral of assassinated Japanese Prime Minister Shinzo Abe. Harris spoke to reporters after visiting the Buddhist temple where Abbe's private funeral

took place in July last night. In fact, we celebrated his life with a dinner that was hosted by the current Prime Minister of Japan, where there were wonderful stories being told by people who spend time with him about his life and his legacy. However, more than half of the Japanese public opposed a state funeral over the cost and the close ties that have emerged between Abbe and more than half of the ruling Liberal Democratic Party and

the Unification Church. NASA intentionally crashed a spacecraft into an asteroid in hopes of altering its orbit. The dark spacecraft slammed into diamorphous last night and asteroid roughly the size of the Statue of Liberty Planet Scientists Emily like Dawalla says, this is the very first experimental step and understanding what humans would need to do to divert the path of something headed towards Earth. There is definitely a large asteroid

will hit Earth someday. Now, whether that someday is in ten years, a hundred years, a thousand years, we haven't discovered yet an asteroid that is on a path that will definitely hit Earth. NASA says it will take a couple of months to determine exactly how much the asteroids path was changed. Global News twenty four hours a day on air and on Bloomberg Quick Take power by more than twenty seven hundred journalist analysts more than a hundred

twenty countries. Michael bar this is Bloomberg, Nathan, thank you, Michael sixty six on Wall Street. John stash Hour has the Bloomberg Sports I take Nathan Monday Night football and a white out at Midlife Statum to see the Giants try to get to three and oh they had a third quarter lead after sake one Bartlet six yard touchdown one but Dallas came back. Cooper rushed TV pass to Seedee Lamb with eight and that minutes left gave the

Cowboys the league. They won twenty three to sixteen. Lamb dropped a pass that would have been a lump touched down in the first half, made up for it with the game winner that he cut one handed in. Dallas is now one ten of the last eleven. His Big Blue Giants are two and one. They placed Chicago Sunday. The offensive line needs to do a better job in pass protection. Daniel Jones last night sat five times. They're

good front, they're good defense. You gotta give credit to them. Um, they played hard, but yeah, I think there's things we can all do better with with that. And uh that starts with me and you know, finding space to step up, finding space to move around the pocket and and uh make some plays off moment later in the game. Sterling Shepard, the longest tenure Giant who made it back from last year's achilles injury, suffering but appears to be a serious

like the season and the knee injury. Patriots KB mac Jones has what's been called a severe high ankles brain. He'll miss multiple games. Big game Sunday, Kansas City at Tampa Bay. Not known where that game will be played due to the impending hurricane in Tampa. In Toronto, Blue Jays came back beat the Yankees three two intendings to prevent the Yanks from clinching the a L East. Another chance tonight, Other chance for Aaron Judge to hit home run number sixty one. Did have a hit two walks

last night and have six straight games without a homer. Matt, So it's Miami tonight. There lead over at Lanta, downto one game with eight games to go. John Stash the Bloomberg Sports dud Okay John Thanks six thirty seven on Wall Street time out to take a look at stunk some of the names moving in the pre market with Bloomberg Radio and TV Markets correspondent Create Good. Can we call this a relief rally? Creating? What are you watching?

I suppose we can. It's a little bit of a and this is the analogy I like to use across programming, a little bit of a spring. When you have this much selling pressure, about five days of losses, it's only natural to see this much of a rally in the morning. So to see futures rallying to the tunem I won't see just shy About one percent is is actually pretty normal. The question is does it stick? Um? I will tell you what rally is sticking though, Nathan, and it's right

here in the US. Listen Macau, casino stocks, Chinese travel stocks as well. They are on track to rise for a second day. We already saw ten to twelve percent moves yesterday and some of these stocks now it looks like they are getting even more of an investor bid this morning. So take a look at Wind Resource w y n N is your taker up one point eight percent, Melco is another one. M l c O is your taker up about three percent in the pre market. Um, And it's not just them, you are also seeing the

likes of GRAB. For example, g R A B is your taker. This is a Southeast Asian internet giant. Uh they are rallying about one point one percent. So you see the A d R s here. Um, well at one point eight percent. I should say now this coming after he talked about profitability in remember a lot of these newer internet companies think uh, Door, Dash, think Uber. They took a couple of years to actually hit profitability

to become cash flow positive. Grab going through the same journey now expecting revenue to slow a bit significantly just because of the macro headwinds. No surprise there. But they're saying that recovery that comes after that will happen pretty quickly, and that will happen in interesting We're also seeing some profitability warnings though from a consumer Staples giant. Oh absolutely. I'm a massive Dr Pepper fan, um, but you know, and I moved to New York. Everyone was like Dr

Pepper really you like the fake cherry taste. And I was like, yes, give it to me. There's Dr Pepper hate out there, is there really is. But I think some of that hate might be reflecting in the stock this morning down one point six per cent KDPS, your ticker Goldman Sacks downgrading the stock to neutral because they hate the training and I'm kidding they down to them. They they're as talking. They're saying, that's executing pretty well

in the tough environment. This is something you're seeing with It's Piers PepsiCo with Coca Cola as well. But they're saying that the risk reward seems more balanced from here. It means that you're not going to get as much of a payoff with this particular stock than you did perhaps before relative to its piers. So down one point six percent. KDP is your ticker, and of course I'll leave you with one last one micro Strategy MSTR. Following the bitcoin boom, now back over twenty MSTR shares up

about five percent. Nathan, Yeah, I seen a six percent and bounce in bitcoin there. Thanks creedy. As always Bloomberg Radio on TV Markets correspondent created Gupta with an eye on the early market trade and checking stocks as a whole before we ring the opening bell. On this Tuesday morning, SMP futures are moving up by forty points again to one point one percent. Futures of two one NASTACK futures

are higher by one hundred fifty two points. The tenure treasury yield right now three point eight to a drop of ten basis points. This is Bloomberg Bloomberg eleven three oh weather. Sunshine in low seventies today, mid fifties tonight under a clear sky, sunny, little cooler tomorrow, higher seventy degrees only upper sixties for Thursday. Right now sixty degrees in Central Park Markets headlines and breaking news twenty four hours a day at Bloomberg dot Com, the Bloomberg Business App,

and at Bloomberg Quicktake. He's a Bloomberg Business flash and the fare in Moscow. Futures are higher. This morning, we get the first word breaking news desk for today's morning call, and here's Bill Aloney. Bill, good morning, and good morning, Karen.

That's right you as futures are in the green right now at DEAF Futures up two hundred and seventy points, SIPs game forty two, Well Mas deck futures rise by one, the US ten year old at three point eight to percent, gold is up fifteen oil is in the green, and bitcoin trading higher by six percent. Japan rose half a percent overnight, while over in Europe, European markets are posting

modest games right now and back in the US. On the economic front of the thirty durable goods orders at nine o'clock, the house price in next, and at ten o'clock, consumer confidence and new home sales. In other news that Jeff Gunlock says he's buying treasuries, and Crispin O'Day says the worst is not yet over for the British Pound wrapping things up carried Dr Pepper was cut to neutral over at Goldman Sachs Live from the first Big News

Task on Bill Maloney. Karen alright, Bail, thank you to hear live breaking news of your Bloomberry type squawk on your terminal SCU. You a w K and that's a Bloomberg business flash. Now here's Michael Barr with Moore on what's going on around the world. Michael Karen Orda is

bracing for Hurricane Ian, now a category three storm. Forecasters expect Ian to make landfall on Florida's Gulf Coast, possibly as a cat for hurricane, late tomorrow or early Thursday, dumping up to sixteen inches of rain and bringing a storm surge of up to ten feet to the Tampa area. Senate Democrats released a short term government funding bill late last night that included a measure to speed up energy project permit. It is opposed by most Republicans and some Democrats.

Monday night football, the Giants lost to the Cowboys three sixteen. In baseball, the Yankees lost to the Blue Jays and ten innings three to Aaron Judge, still stuck at sixty home runs. As he chases Roger Maris sixty one, a l record, The Orioles beat the Red Sox fourteen eight, The Nationals Lost Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than hundred journalists analysts in more than a hundred twenty countries.

I'm Michael Barr, and this is Bloomberg. Karen, all right, michelbar thank you sixty nine on Wall Street. Let's turn to news and science and technology now, but the Bloomberg n j I T STEMM repoort brought to you by New Jersey Institute of Technology, ranked one of the nation's most research intensive universities by the Carnegie classification. Learn more at n j I T DOT E d U slash R one and now here's let's making news and science, technology, engineering,

and math. A large new studies shows gene abnormalities may make some people more susceptible to myocarditis, a rare type of heart inflammation that can affect young people and athletes. The findings, published in the American Heart Association journal Circulation, could partially answer why otherwise healthy young people sometimes develop a condition that can lead to heart failure and sudden

cardiac death. And now so spacecraft has successfully crashed into an asteroid about six point eight million miles from Earth. It was a test to determine if the impact can nudge this space rock slightly off course. The US Space Agency is in the early stages of a plan to protect the Earth from asteroids. If measurements show the asteroids course was even slightly altered, NASA will consider the mission

a success. And negotiations between the Biden administration and TikTok over an agreement that would let the app keep operating in the US are said to have installed. Sources say the sticking point is concerned that Chinese ownership poses a national security threat. We're told in agreement would allow the platform to continue operating in the US with additional restrictions on how data from American users is stored. And that's

a Bloomberg and j I t Stem report. Nathan, all right, Karen, thanks rely from the Bloomberg Interactive Brokers studios, where it's almost six fifty one on Wall Street time not to check what's going on in d C, where some of the top stories include Senate Democrats releasing their bill to prevent a government shutdown, Vice President Harris to visit Korea's demilitarized zone, and President Biden urging oil companies to bring

prices down at a White House competition meeting. For more, We're joined by Bloomberg Washington correspondent Joe Matthew, host of Sound on Here on Bloomberg Radio. So, Joe, I know you've had plenty of time to digest the continuing resolution that was just released five Senate Democrats last night, and you can very cogently just spell it out for us. What does that entail? Joe. It's it's amazing, Nathan that this is four days we're getting this, four days before

the government potentially runs out of money. Interesting to see what's in it and what is not in it. This bill does have money for Ukraine, more than twelve billion dollars, a little bit more than the Biden administration actually asked for, and would also authorize more money should it be needed. There's two billion for unmet needs from recent disasters, and that's important, of course, as we also uh wait for another hurricane to hit here in a billion dollars for

home heating assistance. You know what's not in this bill, though, Nathan is twenty two billion dollars for COVID relief funding, and Republicans say, you know what the President said on a microphone in front of a camera last week on sixty minutes, that the pandemic is over. So we're going

with that. But there is and when we talk to medical experts, a great expectation for a potential surge again in the winter, potentially a new strain, and they're gonna be questions about why testing is not available, why we're paying for vaccines, and so forth. In the Biden administration will likely take the blame for it, even though they ask for the money. So that's there. Also, the permitting bill that's been getting so much attention. This is Joe

Manchin's Energy permitting reform bill. Uh. It's not likely going to make the grade the Senate. Tonight Nathan holds a procedural vote. They'll hold a cloture vote late this afternoon, and it is not expected to pass. The question is what happens after that. Will this go as a clean bill to the House or we're gonna be wrangling over

this a little longer than we thought. That's why when you get this close to the edge here there are chances that things can go wrong, and if there's a day or two of a government shutdown, hopefully it'll just be over the weekend. Yeah, it's interesting because, of course, as you know, Joe Manson went on the Sunday shows Fox News Sunday appealing to Republicans to weren't that measure

what's the Republican opposition to this? Well, it's fascinating. I had a conversation last evening on Sound On with Chuck Fleishman, Republican congressman from Tennessee, and he made it clear that Republicans actually support this reform in principle, but they've been burned. They think by Joe Manchin enough times that because his name is on this, they're not going to vote for him. Now, granted, they think this is a bit less broad than they

were hoping for. Republicans want to see uh permitting speed up even faster than this bill would allow. But I asked him directly if somebody else's name was on this, if the same bill came up with a different name post mid terms, he said, yes, Republicans would vote for it. Wow, is this something this kind of dispute that could UH prevent the bill from passing and bring us the potentiality for a government shutdown at the end of the way.

It's a fair question to ask, because again, things go wrong when he gets too close to the edge, or at least they can. But no one and I it's it's important to tell our listeners this. No one of of any credibility is predicting a government shutdown right now in Washington. But we are playing games right up to the last minute. There's even talk that lawmakers may have to stay in town for the weekend to get this

worked out. They'll likely be a bridge component in this legislation, Nathan, so they can buy a couple of days if it's not done exactly by midnight on Friday, and that's what would require them to work the weekend. We're gonna have to give us a gup more days to figure out stop gamp on top of a stop gather that before in Washington. Let's move on to some of the other stories going on. We're following Vice President Harris on her

overseas trips. She's in Japan for former Prime Minister Shinzolabe state funeral, but she's also added a very interesting stop to her Asian itinerary. Yeah, to the d m Z. How about this. It's really it's interesting as the the vice president tries to kind of expand the portfolio or the president is doing this on her behalf, remembering that it was a difficult first year dealing with issues on the border. Although she became much more vocal as sort of the point person post Roe v. Wade. That was

something that she's been talking a lot about it. It's been out a bit on the campaign trail. This is a big trip for her though internationally speaking, obviously, meeting with world leaders from Japan, from Australia there and out of the DMZ. That's not a lot you can do there, by the way, She's not going to be dancing around the border with Kim Jong Un the way Donald Trump was.

But there's some meetings there. She'll meet with American troops on on the on that side of the line obviously, and and it really comes down to a photoop, Nathan. This is, you know, burnishing foreign policy credentials. If she were to seek the job of actually being president, you have to have that picture with the squinted eyes looking across the border to the North Koreans, or maybe holding a pair of binoculars. You'll likely see that in the

next couple of days. Now, while the vice presidents focused on geopolitics, you've got President Biden putting his focus on the economy with this series of meetings this week, including a pretty interesting message to oil companies during this White House competition conse yeah with with an ask or a demand even to lower gas prices. And it's not Look, it's interesting timing here because the White House has been taking credit for the fact that gas prices have been

down over nine days in a row. Might even be more than that at this point if you're keeping score in your home game. Um, but this has been one of the good stories to tell for the White House. They've been releasing a million dollars a million barrels, i should say, of oil from the spr They're talking with exporters in the Middle East. They're dealing with the war impact of the Putin price hike. Like Joe Biden says, in gas prices have come down from above five dollars.

The problem is it's not uniform across the country and is particularly on the West Coast. Some folks are still paying a lot of money that does not exactly drive with the price of crude oil. But as you also know, Nathan, it's not just the price of oil. It's about refining bottlenecks, and it's about the blend, whether it's summer or winter. That can go a long way to impacting prices. So it just might not be as easy, and it hasn't been for this administration to ask the oil companies to

act a certain way. Yeah, we've seen reports of gas prices back up above five dollars and then some in California. Thanks for this, Joe, As always, Joe Matthew Washington, correspondent from Bloomberg News, host of Sound On. You can hear every weekday five pm Wall Street Time right here on Bloomberg Radio. And of course read more about all these stories we've been talking about on Bloomberg dot Com or

on the Bloomberg terminal. SMP futures right now are up forty four points again of one point two percent, Dow futures up two eighty five and NASDAC futures are hired by a hundred fifty eight points. That's a gain of one point four percent. Much more to come on Bloomberg Surveillance next with Tom Keene, Jonathan Farrell, and Lisa Abramowitz for Karen Moscow. I'm Nathan Hagar. This is Bloomberg