Bloomberg Daybreak: September 28, 2022 - Hour 2 (Radio)

the lowest level in almost two years. Ten year treasury yields breached four percent, and the dollar rises after the White House talks down the prospect of a currency agreement, Mixed reaction to the so called tent city for migrants and the Bronx plus Ukrainian President Zelenski dismisses the Krumlin run referendum as a farce. I'm Michael Blar more ahead, I'm John Stash awards towards the Yankees wanted Toronto and clips the a l Etham that's lost in an out

tied for first with Atlanta. That's all training ahead on Bloomberg Daybreak on Bloomberg eleven, TREEO, New York, Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties and Francisco Sirius x M one nine Team and around the World Old on Bloomberg Radio Dot com and via the Bloomberg Business app. Good morning, I'm Nathan Higger and I'm Karen Moscow. US DOT Index futures are lower

this morning. We are coming up to six oh one on Wall Street, and we check the markets every fifteen minutes throughout the trading day. On Bloomberg SMP futures down forty six points down, futures down two hundred ninety six and as deck futures down one hundred ninety. Ten year treasury down fifteen thirty seconds, yield four percent, and they yield on the two year four point to three percent.

Nathan Karen will have much more on the market term well in just a minute, but first we want to bring up to speed on Hurricane Ian, now a dangerous Category four storm with top winds at a hundred forty miles an hour taking aim at Florida's Gulf Coast. Bloomberg Meteorologist Robed Carolyn joins US now with the latest on the track of the storm. Good morning, Rob, Nathan and Karen. Hurricane Ian continues to move north northeast and around ten

miles an hour this morning. Is a dangerous hurricane. The winds in excess of a hundred and twenty miles an hour. We were seeing wind gus over sixty miles an hour earlier this morning in Key West. The store will make landfall later today somewhere north of Fort Myers too, as far north as Tampa, and then it will start to

move inland. We're expecting the hurricane force winds to extend down at least forty five miles from the center of circulation, so there's gonna be a lot of damage across that portion of West Florida between Fort Myers and the Tampa area. Storm surge is probably going to be an excess of ten feet. We'll see win us over a hundred and twenty five miles an hour, and along the path of the storm, anywhere from five to ten inches of rain is likely to fall over the course of the next

forty eight hours. Nathan and Karen alright, Rob, thank you. Of course. He'll be checking in with Bloomberg meteorologist robbed Caroline throughout the morning. Well ahead of the storm. Disney Sea World and Universal Orlando have shut their Florida theme parks through at least tomorrow. Tampa's main airport closed up yesterday. Orlando plans to do the same later this morning, Governor Rhonda Santis says about two and a half million Floridians need to get out of harm's way. If you are

in an evacuation zone, particularly in those South It's Florida counties. Uh, you know your time to evacuate is coming to an end. Uh, you need to evacuate now. Governing around to Santis spoke with the President Biden last night. The President says FEMA has deployed seven hundred people to Florida and up to seven thousand members of the National Guard are being activated. The storm has also forced the House January six Committee to postpone its latest public hearing this afternoon. No new

date has been set. All right, Let's get back to markets now, Karen, where the equities sell off continues. Global stocks are heading for their lowest level in almost two years, The yield on ten year treasuries breached four percent for the first time since two thousand eight, and the dollar

is soaring. After the White House talk down the prospect of a currency agreement to week in the green Back, White House, National Economic Council Director Briand says he does not expect another five type deal among major economies to counter dollar strength. Do you see any possibility of a global accord the kind of adjust UH currency values the way there was with the pump plaza corners that just not pumping are focused on. I want to anticipate that

that's UH, that that's that, that's where we're headed. White House National Economic Council Director Brian Deese made those comments in an interview on the David Rubinstein Show, Peer to peer conversations on Bloomberg Television and aggressive. FED is also a feel the dollars rally, Nathan. Of course, the central bankers is doubling down on the need to keep raising rates in the face of inflation. San Francisco FED President Mary Daily says the hikes could have an impact on

the labor market. Have to balance that off with our dual mandate with full employment and trying to navigate that to bring inflation down while we do so as gently as possible, not to tip unnecessarily the economy into a down turn that actually influences the full employment part of

our mandate is a struggle. San Francisco FED President Mary Daily is currently not a voting member on the f O m C. The dollars recent gains against the Euro and the pound accelerated, Karen after the UK announced massive tax cuts last week. Bank of England chief economist Hugh Phill says a significant monetary paul See response is needed in a context where there is a rebalancing of the macro policy environment and an anticipation of looser fiscal policy.

I think it's hard not to draw the conclusion that all this will require a significant monetary policy response. Bioi's chief economist h Hill says the best time to act is at the institution's next meeting in November. Meanwhile, Nathan, global criticism of the UK's fiscal plan is growing this morning, and let's go to learn it and get the details from Bloomberris U and parts. Good morning you and good

morning Nathan and Karen. The I m F has delivered a stinging rebuke of the UK's new unfunded tax plans. The International Monetary Fund says the government's package of tax cuts, the biggest in fifty years, are excessive and in need of revision. It says physical policy should not work across purposes with monetary policy. Chance l Quasi Quote meets with top Wall Street bankers in London later today. Hill set up by his UK go plan is still the right thing to do in London. I'm you in part Splinberg

break are you in Thanks? Back in the US, the White House may be getting ready to shake up its economic team, according to Axe, As, officials are preparing for Treasury Secretary Janet Yelling to depart after the mid terms. A White House spokesperson says the Secretary does not plan

to leave. Top economic advisor Brian Deese also says he has no plans to the part On Capitol Hill, Nathan House Democrats have released a bill that would restrict stock ownership for a high ranking government officials that includes members of Congress, the President, Vice president, Supreme Court justices, and their spouses and dependent children. It covers commodities, futures, cryptocurrency,

or other digital assets. Public officials would have to put them in a blind trust or divest their holdings and shares of Biogen are Soaring care in their upto percent. Biogen and its partner as I say their drug significantly slowed Alzheimer's disease, making it the first medicine to blunt progression of the most common dementia. In a definitive, large scale trial, and this update brought to you by b

on why Melon's Perishing. Learn why the world's most sophisticated wealth management and institutional firms rely on perishing to help them improve profitability, create efficiency, attract talent, and managed risk

at pershing dot com. And we are watching these headlines with UK bonds surging and the pound rising after the Bank of England said it's going to carry out temporary purchases of elongdated UK bonds and your local headlines are straight ahead and this is Bloomberg I, Karen, thank you to six oh seven on Wall Street where fifty four degrees in Central Park and still dealing with an accident on the southbound New York State through Way near the

Tapanzee Bridge. Michael bar is here with more on what's going on in New York and around the world. Michael, thank you very much. Nathan. There's controversy over a temporary humanitarian relief center being built in the Bronx has more immigrants arrived from Texas. The so called tent city in Orchard Beach will be heated and can house up to a thousand migrants. Mayor Adams said the tents are supposed to be a temporary stop for migrants as they get

on their feet. We want to make sure that we bring people into UH a safe, clean environment as we process them for a few days to figure out their knees and move them to the right location. But immigrant rights advocates say this is a terrible location, far from mass transit or other services the migrants might need, and some residents say they are fearful. New York Mayor Adams talked about his return from Puerto Rico and the Dominican

Republic in the aftermath of Hurricane Fiona. New York lawmakers are calling for more federal aid to help with recovery for the island. New York City Council Member Oswald police, what's happening in Puerto Rico and the Dominican Republic is extremely sad. It's a horrible tragedy. These are communities that have worked for everything that they have, those small businesses,

those homes, they have worked for it. Council Member Police says the City of New York will be with Puerto Rico and the Dominican Republic every step of the way. Moscow backed officials declare that all four occupied regions in Ukraine voted in favor of joining Russia. Russia conducted with Ukrainian leader voladimir's Alinsky called a sham referendum. US Ambassador at Linda Thomas Greenfield the United States will never recognize any territory Russia attempts to seize are allegedly annex as

anything other than part of Ukraine. Ambassador Thomas Greenfield the US will allow a limited number of refugees in three. President Biden said it would welcome up to a hundred twenty five thousand refugees this year, and we'll let him the same number in the next. One of the January six rioters who attack police officer Michael Panone has been sentenced to more than seven years in prison. Kyle Young of Viola began crying and begging for forgiveness during his sentence.

Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael Barr. This is Bloomberg, Nathan. Thanks Michael six o nine on Wall Street time for the Bloomberg Sports Something with on Thanks Naton. The Yankees hoping. Last night's division clinching celebration in Toronto, the first of many Champagne celebrations,

they beat the Blue Jays five to two. Labor Torres had three hits, three irbis, and Jamisonion pitched into the eighth. Didn't get a fourtteenth win for Aaron Judge, a line out in the first inning and then four straight walks. So still not home run number six and one, but a division champ yanks twentieth from team history. They take advantage of the new format where the top two teams

get a first rand by into the division series. In the a L, that'll be the Yanks and Astros, and the NL Dodgers will be joined by whoever wins the n L East. And right now, that's the flat footed tie between the Mets and Braves Atlanta one at Washington, the Mets loss at City Field in Miami six to four. Carlos Carrasco lasted just three innings, gave up four runs,

Trevor Williams gave up two more. Peter Alonzo and defeat at three run over is forty leads the Majors with a hundred and thirty one RBI seven games to go and including this weekend three games series in Atlanta. If the two teams finished in the tie, the Mets will almost certainly win the five breaker. The only way Atlanta wins the season series is if they sweep this weekend, and if they do, they'll probably win the division outright.

All is well in Brooklyn after a turbulent off season where Kevin Durant demanded that the Nets trade him unless they fire Coachdeed. Nat knowing Kevin, as long as I haven't didn't really bother me the way maybe everyone would think, you know, that's a part of being competitors. I wasn't like um overly surprised, and I wasn't even overly concerned. You know, this is something that I thought we would address and in time, and we did, and and here

we are, and we're looking forward. I think that's uh, you know, there's something in this that we can all gle all from as well. Nash said, the Nets are like a family, and all families have issues. John Stash award Bloomberg's Boys, Okay, John, thanks. SB futures down twenty one point, Sound futures down a hundred eight. Nastact futures

are lower by a hundred twelve points. The British pound is trading at one point zero six eight two against the dollar after the Bank of England announced it will carry out temporary purchases of long dated guilt starting today to door order league market conditions. You're listening to Bloomberg ca Bread Bloomberg eleven three oh weather sunny today with a hind year seventy degrees, mid fifties Tonight, We'll get

into the upper sixties with sunshine tomorrow and Friday. 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 Quicktap's a Bloomberg Business Clash. And I'm Karen Moscow. And the dollar is soaring to another record after the White House talked down the prospect of weakening the currency, while the continuing global bond route pushed ten year treasury yields to the hyacinths.

Two thousand and eight. UK bonds are searching after the Bank of England said it would carry out temporary purchases of long dated UK bonds and delay planned sales of debt and Asian stocks are made in April lows, while the dollars sword after the White House talked down the prospect of a currency agreement to weaken the greenback. We get more unmapped with Bloomberg's Juliette Sally, Good Morning, Karen.

The dollars rally brought further losses to e m f X, with China's on showy one falling to the weakest level against the greenbacks since the global financial crisis in two thousand and eight and the offshore hitting a record low. The yen remained near the key one for five mark against the dollar and within side of levels that have drawn intervention from Japan. Australia's ten ure yield reached a three month high. Japan's benchmark yield untraded after closing at

the upper limit of the Central Banks target band. On Tuesday, Apple supplies in the region fell after Bloomberg reported the company is backing off from plans to increase production of its new iPhones this year. A lot of them traded on South Korea's Cosby, which fell to July twenty twenty lows in Singapore. Juliet Sally Bloomberg Daybreak Right, Juliet Thank you, and futures are lower, with SMP futures down thirteen points

and DOWN futures down forty two. Nowday futures down ninety two and a ten year treasury up eleven thirty seconds. Year three nine zero percent held on the two year four point one six percent. And we continue to watch shares of Biogen of more than forty three percent in early trading after it said it drugs significantly slowed Alzheimer's disease. 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. Hurricane e And is turning in the Gulf of Mexico and is about seventy five miles from Naples, Florida. The National Hurricane Center says he And has strengthened to a Category four storm. Thousands of flights have been canceled. At the United Nations, top diplomats are dismissing the early results of staged referendums in Russian occupied areas of Ukraine. Some Ukrainians say they were forced to

vote at gunpoint. North Korea fire do ballistic missile off its eastern coast today that's according to South Korea's Joint chiefs of Staff. That comes the day before US Vice President Kamala Harris was set to visit the demilitarized Zone dividing the nations. The missile is the second launch by North Korea this week. In baseball, the Yankees to the Al East, beating the Blue Days five to Aaron Judge was walked four times, remains at sixty home runs, one

shy of Roger Mara's sixty one record. The Mets lost, the Red Sox down the Orioles, thirteen nine a's and National's lost Giants. One. Global news twenty four hours a day on aerand on Bloomberg Quick Take power by more than twentie hunder journalist analysts, more than twenty countries. And Michael Barb this is Bloomberg, Nathan, Thanks Michael. Six twenty on Wall Street Life in the Bloomberg Interactive Broker Studios,

this is Bloomberg Daybreak. We want to focus now on the auto industry at a big new product release from Ford Motor Company, The automaking giant has unveiled to redesign F series super duty truck at Churchill Downs in Louisville. Kentucky. Ford CEO Jim Farley says traditional gas powered vehicles will be a profit and cash engine that finances the company's electric car ambitions. Jim Farley spoke more about the truck and Ford's long term strategy with Bloomberg's David Weston. Let's

listen in to that conversation. Now, the Super Duty, this new F series, it is one big truck. Tell us how it is different from what we've seen before, David. You have more towing, more hauling, you know, more power out of the motors. We have four motor options. But I think the real change here is the technology. It's the first truck to have five G integrated. We have

all sorts of trailer features. Even you can even set the navigation to a preferred route for for trailers because that navigation would be totally different than our retail customers. So it's really investing in technology. We can now ship software to this truck um where we haven't before and our competitors haven't, and that's becoming a bigger and bigger issue opportunity for us. We have a Ford Pro business and our software sales are growing about a quarter because

we can ship software to the car. What about electric biggles? Is there going to be a version that this electric fiels? Ever? You know, look, we're the we're the number two electric brand in the US right now thanks to F one fifty a Lightning and many of our other electric vehicles. And so there there are truck summers who who find that electric going electric is interesting. The last customer who would probably do that would be a super duty customer.

As soon as you you know, most of our super duties are are towing heavy towing like ten thousand towns. And for a battery electric vehicle, it's not it's not a great vehicle. It's uh so you you wind up sacrificing range a lot, like cut your range in half with towing. So this is this is not the kind of vehicle that we would use for electric. We don't

think the segments going electric anytime soon. So when you bring a new vehicle forward, like the super Duty, do you have to take into account in a way you didn't before the supply chain. I mean, do you actually engineer the product to some extent to anticipate a more resilient supply chain the way you have in the past. It is a great question because there's no more complex if you're number one in the super duty business. It's

all about complexity in this business. You know, um bucket trucks and cabin chassisas and two fifties, four fifties, six fifties, very complex business, different acts or a geos, all sorts of different features. So the number one thing we can do to limit that risk is reduced complexity. And we've been driving down complexity as well as going to almost order to delivery. We don't really deliver vehicles off of inventory and the dealers anymore. We ship directly to the

customer through the dealers. Now is specific orders so they order their own truck and so we can have visibility of the supply chain we need. But the number one leverage and de risking our supply chain is going to be reducing complexity. What about the financing part of the business, what about Ford motor credit? Do you anticipate some hit there? Ford credit is really important. I'm glad you asked that. Uh yes, uh, you know, obviously borrowing costs that are

very important to a credit company. So many of our customers finance to forward credit are borrowing costs are going up a little bit not huge, but they are going up that cost more money um as well as use car values when when those use courts trade in like an at least we own those vehicles, we sell them. You know they're they're not worth what they were. We were very careful and reserves, but you know that that's a reality. So we are seeing headwinds for our finance company.

Is not huge right now. We're still at like peat profitability for a finance company, but but they're definitely the inflation is hitting all of us in all parts of our business. And that was the CEO of Ford Voter Company, Jim Farley, speaking with Bloomberg's David Weston about the newly designed F series Super Duty. They spoke at the Churchill Downs Racetrack in Louisville, Kentucky, and you can catch the full conversation online at Bloomberg dot com or on the

Bloomberg terminal. Quick check of Ford shares in the pre market there down a half percent. Futures are making a little bit of a turnaround right now. We've got SMP futures up three points, STOW futures up sixty five. NASTAC futures are still lower but well off session lows down thirty one points. The tenure Treasury is at three point eight nine percent. Stay with us. You're listening to Bloomberg day Break Bloomberg eleven three oh weather, sunshine, a high

near seventy today. We'll get down to the mid fifties tonight, sunny, upper sixties tomorrow and Friday before we get the remnants of n Right now fifty four in Central Park, broadcasting live from the Bloomberg Interactive Broker's Studio in New York. Bloomberg E Loving Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg NAM sixteen to the Country, Sirius XM Chado one nine and around the globe to Bloomberg Business and Bloomberg Radio dot Com.

This is Bloomberg Daybreak six thirty on Wall Street. Good morning up, Nathan Hager and I'm Karen Moscow, and we're just about three hours away from the open of US trade. In time to the five things that you need to know to start your day. A first Hurricane Ian is now a dangerous Category four storm, taking him at Florida's Gulf coast and threatening to do serious damage. Bloomberg meteorologist Rob Carolyn is tracking the storm. Rob, Karen and Nathan.

The eye of the hurricane very apparent on the radar out of the Key West area. We can see it working its way north northeast. It's paralleling the coast of western Florida. At some point today it will turn more towards the northeast and that allow it across the coast somewhere north of Fort Myers to as far north as about Tampa. Looks like the storm surge is going to

be in excess of ten feet. Will be seeing wind gus probably over a hundred and twenty five miles now with the storm and excessive rain of five to ten inches along the path over the next twenty four hours. Karen and Nathan. Okay, Rob, thank you. We'll be checking back with you throughout the morning. Ahead of the storm,

thousands of flights have been canceled. Disney, SeaWorld and Universal Orlando of all shut their theme parks through at least tomorrow, and Florida Governor Rond de Santas is activating five thousand members of the National Guard. Another two thousand are coming from out of state and now to the turbulent market stay thin. After being lower all morning, US futures well,

they're still lower about their trimming their declines. The Bank of England did announced it would step into the market to buy long data government bonds starting today to help restore order to the market. Well meantime, caring the dollars trading at a record that's after the White House talked

down the prospect of weakening the currency. Earlier, tenure treasury yields touched their highest level since two thousand and eight, and a slew of hawkish Fed speakers, including Minneapolis President Neil cash Cary, are stoking fears about the economic outlook. We are moving very, very aggressively. There's a lot of tightening in the pipeline. We are committed to restoring price stability, but we're also we also recognize, given these lags, there

is the risk of overdoing it. Minneapolis Fed President Neil cash Cary says the Federal Reserve is united in getting inflation back to two percent. In corporate news, Nathan Bloomberg News has learned that Apple is backing off plans to increase production of its new iPhones this year. The company had expected a surgeon demand by that hasn't happened. Apple will aim to produce ninety million handsets in the second half of the year, roughly the same level has last year.

Necess five things you need to know to start your day, and again, Futures, well they are lower. They had turned higher briefly, but they're lower again. SMP Futures down sixteen points right now down Future is down seventie and now's day Future is down ninety one. They are off their lows of the session, though Tenure Treasury is up eleven thirty seconds. He'll three point eight nine percent in the yield in the two year, four point to zero percent.

Trun ahead your latest local headlines plus a check of sports, and this is Bloomberg, all right, Karen, thank you. Sixty three on Wall Street, Wort fifty four degrees in Central Park. We got an accident in tea Neck eastbound four Decatur Avenue. More coming up in traffic. First, Michael Barr with what else is going on in New York and around the world.

Good morning, Michael, Good morning Nathan. They sharp debate as New York City officials say a humanitarian relief center will be built in the Bronx as more immigrants arrived from Texas. It's being built in Orchard Beach, but something advocates say of the shelters location could create issues. This Orchard Beach resident handsome words for the city. If you want to put something in our community, you need permission from us. The so called tent city being built can house up

to a thousand migrants. New York Mayor Eric Adams discussed his trip to Puerto Rico and the Dominican Republic ravaged by Hurricane Fiona. Adams says, Puerto Rico has a significant population in the city, and what affects Puerto Rico affects New York. This is the international city. This is America's city. People like it or not, This is America's city. What we do is going to impact what happens across the globe and how people are a bunch of perceive us

across the across the globe, Mayor Adams. Russian leaders declared victory in a series of u N condemned referendums as the Kremlin move to annex a large chunk of occupied Ukrainian territory. Meanwhile, the White House says Russia men fleeing the military draft or welcome to apply for asylum. In the US, Press Secretary Karine Jean Pierre, we are seeing

protests in the streets of Russia. We are seeing people sign petitions, and I think the message that they're sending to us very clearly is that this war that Putin started, this war that was started by the Kremlin, is unpopular. Light House spokesperson Karine Jean Pierre. North Korea fired a ballistic missile off its eastern coast today. South Korea's Joint chiefs of Staff says it comes a day before US Vice President Kamala Harris was set to visit the de

militarized zone dividing the nations. While on our Asian trip today, Harris reminded Japan don't let your reliance on China for trade cloud the bigger picture. Harris says the US and Japan as the cornerstone to peace and the region and not cower at China's attempted intimidation of Taiwan. China is undermining key elements of the international rules based order. China has challenged the freedom of the seas. China has flexed its military and economic might to course and intimidate its neighbors.

Vice President Harris spoke at the Yokosuka Naval Base outside of Tokyo, where fifty American troops are based. Global News twenty four hours a day on air and on Bloomberg Quick Take, powered by more than journalists and analyists more than a hundred twenty countries. Michael bar this is Bloomberg. Nathan Okay, Michael thanks sixty six On Wall Street, John Stanshard has a Bloomberg Sports update. All right, Nathan. Mets and Yankees, of course, both heading to the MLB postseason.

The Yanks says a division champ, but will the Mets when the n L e's it's the only division still up for grabs. The Cardinals just clinched the NL Central. Mets lost at home to Miami six to four of Peter alonso three run homer is forty if not enough to overcome a rough start by Carlos Carrasco. Atlanta wanting to two at Washington. The Mets and Braves have identical records of nineties seven and fifty eight seven games to go, including a three game series this week ken in Atlanta.

The Yankee division clinching win was five to two at Toronto, the red hot labor Torres who with three hits, three r v I s the back to pitching of Jamison Tyone. He served up a lead off homer to George Springer, but he dominated after that. Aaron Judge had only one official at bat, he walked four times, refuses to chase bad pitches even as he tries to tie Roger Marrison's home run record. Now seven games without a homer. Judge still stuck on sixty, but in a good mood. Is

even screened with Champagne. You so far. Um, We're definitely not done, but it's a great first step in to got there and winning a World series, you know, clinch the vision with this group of guy and uh, there's definitely something special. Head last night on the Yes Network, Sterling Shepherd season is indeed over Freak Knee and dream Monday Night of the MetLife Turf where he was simply running the past pattern comes just a Shepherd made it

back from last year's achilles injury. He was the Giants top receiver. They were counting on high price free agent Kenny Galladay and first round draft pick to Darius Tony, but so far those two have combined for only two catches. John Dash Bloomberg Sports Nathan Okay, John, thank you. Six thirty seven on Wall Street. Time to take a look at stock some of the names moving in the pre market.

We've pried Burloomberg Radio and TV Markets correspondent Create gooped away from watching the UK market this morning to let us know what's going on in the early trade here on Wall Street. What are you looking at, Creedy? Do you know how hard that was, Nathan to eyes away. It's like watching a train wreck. It's really looks like it's having some kind of impact on the futures as well.

They've been whipp sawing. They are, I think the futures trimming some of their losses here off the announcement, which is interesting, really reaction to the bond market perhaps thinks there's maybe some stimulus on on the on the macro front, perhaps coming r acts, say less hawkishness for for for that matter, um let's go to the US though, because there seems to be perhaps a little bit more someonance of comm although I wouldn't call it, it wouldn't go

crazy with that phrase either. Apple shares a a p L is what's taking the cake? Was taking the spotlight really this morning, down about three and a half percent. This comes after a Bloomberg report, actually Woomberg scoop I should say that the company is likely to ditch its iPhone production boost. Remember this was going to be their major um kind of shift forward. They were shifting the

production lines from China to India. Are really amping up what they're going to do for the iPhone four team as well as creating perhaps a a more lower cost version to be able to tackle some of the more emerging markets that rarely Apple doesn't have the majority of sales. And I'm really taking on China full throttle. So that news looks like undermined a little bit here um with that Bloomer report and the ripple effect, here's going to be all across their supply chain. So Apple shares a

a p L down three point four percent. But then you have to look at the semis as well. Micron, for example, m use your taker down one point two percent. Qual Calm and not far behind it, q c o M is your taker down one point eight percent in the morning, and of course Skyworks Solutions also part of the supply chain. S w k S down about two percent. Naight, and so once again a report effect. And of course the other big corporate story this morning, creaty is Biogen

and that Alzheimer's. That stock has been soaring all morning long. Oh, it absolutely is a forty three percent gain. And that's not even where it was a session high. So for b I I B that's your taker for Biogen. To your point, Nathan, it is talking about its biggest gain since it's I p oh. That is, of course, if the move actually holds the way it is right now, analyst saying, it's all about the Alzheimer's drug study with their partner, I si Uh, looks like things are going

well on the Biogen front. And I remember Biogene was actually looking for alternative ways, uh to to diversify their portfolio. They were actually basically thrown under the bus for a while because of the lack of UM diversity they had in their portfolio. So this is really good news UM that they were finally able to to get a little bit of um um success. There. I'll leave you with one more very quickly locked Martin l m T down

about two percent this morning. This comes after it was downgraded to an underweight over at Wells fargo taking a little bit more of a cautious view on the defense sector. All right, Bloomberg Gradio on TV Markets corresponding creating goop. Don't let you get back to the UK market now. It is a very busy league session, and looking at futures this morning, it's busy there as well. They had been lower for much in the morning. Right now, SMP futures are up two points. We'll call it little change.

Dow Future is up fifty four. NASTAC Future is still on the decline, but pairing the losses down thirty two points for a drop of three tenths per cent. This is Bloomberg Bloomberg eleven three oh weather. Sunshine today with a high near seventy, upper sixties tomorrow and Friday, so nice weather before we get the remnants of the end

this weekend. Right now fifty three 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 Tape. He's a Bloomberg Business lash fine, I'm ker in Moscow. US dot Index futures are lower this morning. UK bonds are surging. We go to the first Word Breaking News desk for today's morning call, and here's Bill Maloney. Bill,

good morning, Good morning, Can. That's right. US futures are lower, but spiked off their lows after the Bank of England said it would carry out temporary purchases of elongated UK mons Today Down futures now down twenty point says to be s drop eight. NASA futures pair losses to seventy. The US ten year falls the three point eight eight percent. Gold is little change, will trading higher and bitcoin is

also now trading little change. Hong Kong drop three point four percent overnight, while eup markets are also in the red this morning and back in the US on the economic Fronday eight thirty, wholesale inventories and at ten o'clock, pending home sales regarding earnings for industries beat estimates and

look for paychecks to report in the pre market. In other news, Apple Drop plans to boost its production of iPhone four team this year, and in the biotech space, Bogen reported its drugs slowed Alzheimer's in a large trial. Those shares are up forty percent in the pre market. Live from the First Breaking News Best com Bill Maloney can all right, Bill, thank you, and here live breaking news over her Bloomberg type squawk on your terminal squu A w K and that's a Bloomberg business flash. Now

here's Michael bar with Moore. I'm what's going on around the world, Michael Karen, thank you very much. Hurricane and is now a category four storm with the maximum sustained winds of a hundred fifty five miles an hour as it spins toward Florida. Ian is about sixty five miles from Naples. The storm knocked out power to the entire island of Cuba. North Korea fired a ballistic missile off

its eastern coast today. The statement from South Korea's Joint chief of Staff comes a day before US Vice President Kamala Harris was set to visit the demiblitarized zone dividing the nation's In baseball, the Yankees clinched the a L East, beating the Blue Jays five to Aaron Judge was walked four times and remains at sixty home runs, one shy

of rogermras sixty one, a L record. The Mets lost, the Red Sox down the Orioles, the Nationals and A's lost the Giants one Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than seven hundred journalists and analysts in more than a hundred twenty countries. I'm Michael Baren. This is Bloomberg Careen. All right, Michael, thank you. It is six forty nine on Wall Street, and we turned to news and science and technology now with a Bloomberg n j I T

Stammer report. It's brought to Ubay, 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 are one and here's let's making news and science, technology, engineering and math. Wall Street has been hit with more than two billion dollars of

fives and what's become called the What'sapp investigation. Regulators reached settlements with a dozen banks for failing to monitor employees communications on unauthorized messaging apps. Goldman Sachs, Bank of America and City Group were among those penalized. Bloomberg News has learned that Apple is backing off plans to increase production of its new iPhones this year. The company had expected

a surge in demand, but that hasn't happened. Apple will aim to produce ninety million hand sets in the second half of the year, roughly the same level as last year. Elon mosses he asked a federal appeals court to throw out his so called Twitter sitter deal. That's the twenty eighteen agreement with the SEC that requires a Tesla lawyer to screen all his company related tweets and a court filing must lawyers called the government and post muzzle on must speech and s the Bloomberg n j I t

STEM Report. Nathan all right, Karen, thank you. We are live from the Bloomberg Interactive Brokers Studios or at six fifty on Wall Street. Time to check what's going on in d C, where some of the top stories included President Biden speaking with Florida's governor ahead of hurricane and the Senate moving ahead with funding after Mansion drops an energy provision, House Democrats unveiling a build a restrict lawmakers stock trading, and the White House reportedly preparing for changes

to its economic team. Let's bring in Bloomberg Government reporter Emily Wilkins are all that's happening in the nation's capital. Plenty to talk about here, Emily, starting with how the White House is preparing for what's coming down south. Yeah, so obviously Hurricane Ian is going to be big news for these next couple of days. The storm is only gearing up to be worse. It hit, It hit Cuba, it caused the power outage. Now it's on traff to hit Florida pretty hard as a category for hurricane Uh.

We did see last night President Joe Biden and Ron De Santis get on the phone and speak about the hurricane and about what assistant Florida might eat from the federal government. This, of course, Nathan is particularly notable because Ron De Santis is considered a top contender for four especially if former President Donald Trump doesn't run, and he's been a very vocal critic of Biden. But at this point it does seem like the two are working together.

They really realized, of course, that this could be a potentially fatal hurricane in some cases, and it's expected to be one of the costliest storms in American history. It could have seen it seed three five billion dollars and more than two point five million people along Florida's Gulf coast are being asked to evacuate at this time, so we'll continue monitoring that situation. Of course, Meta, I want to get the latest on the stop gap spending bill

progress here, Emily. We know that Senator Mansion dropped that energy permitting provision. What happens next, So we've been saying that, well, the next is that we don't head for a government shutdown. Hopefully. That was really sort of the big stumbling point that was left, Nathan, was this whether or not this energy permitting would be attached to the bill. Basically, Senator Joe Mansion announced yesterday that he didn't have enough support to

move it through. Republicans kind of used it as a bit of payback after Mansion said that he wouldn't work with Biden on a larger reconciliation bill, which, of course then they wound up coming out with and passing UM and a number of Democrats were concerned that this would help get fossil fuel projects off the ground. They didn't

want that either, so a lot of opposition two Mansions bill. Yesterday, he told Humor to pull it, and the Senate has started to move forward with procedural votes on a package to fund the government through December six. UH. The Senate will be taking more votes today. They could do final passage in the Senate potentially today, potentially Thursday, and then the House will be ready either on Thursday or Friday to take up that bill. Deadline, of course, is Friday

at midnight. That's when they need to fund the government or else there will be a shutdown. And elsewhere in Capitol Hill, Emily House Democrats have unveiled a stock trading ban for themselves and a lot of other high ranking government officials. Yeah, we knew that this was coming for a while, Nathan. It's been discussed. There have been multiple bills floating out there, but this is one that's taken a number of those bills, tied them together and and

could potentially be the vehicle that this gets passed. However, they're not out of the woods yet. There's still a lot of concerns about the legislation, about the penalties and the legislation, but the overall view is that it would require a lawmakers as well as their spouses and dependent children UH to prohibit them from trading stocks, divest from current holdings, or put their current holdings in a blind trust, and also tightened disclosure requirements, and if you violate the law,

the penalty would be increased. At this point, Nathan, it doesn't seem very likely that this will get to Biden's desk before the mid terms. UM. It's a huge question mark as to whether the House will even vote on it before the end of this week, which is the last week that they're here until the November elections. So we could see potential movement on this a little bit later UM, in the so called lean duck period between the end of the election and the start of the

new Congress. UM. But at this point we are seeing some progress, but unlike the Continuing Resolution, there's no guarantee that we're actually going to see passage here. And speaking of the mid term elections, Emily, what are these reports about potentially deck chairs shifting with the White House Economic team after the mid terms? So I feel like Nathan, the terms is always a good time for those who are in the executive office to take stock decide whether

or not they want to stay on or get off. Certainly, you don't want to be jumping ship very close to an election, especially a presidential election. So you know, we are hearing reports up particularly from Axios. The White House officials are preparing for the potential departure of Treasury Secretary jan Yelling after the mid terms, but at this point, there's no guarantee that Yelling will be leaving her position

or any cabinet secretaries. A lot of it is going to depend what the November's election looks like, how much power Democrats are still going to have in Washington. At this point, Democrats are expected to lose the House, but there's some hope that they could potentially find a way through to to keep control of both chambers. UH. They're a little more likely to keep the Senate, but even that's not a guarantee. So Biden could be working with

a potentially very difficult UH Congress next year. That would allow a few things to get done, and that might wind up causing some individuals like Levin to head for the door. Now, last minute, here, Emily, We've got a White House conference on hunger coming up later today. What's gonna be announced there? So the big announcement is eight

billion dollars and hunger UH and nutrition commitments. UH. These are going to be various things that are meant to really sort of target places in the US where there's either food and security or food deserts where they're just isn't the amount of fruits and vegetables needed for for healthy living for individuals. This is one of the first times in decades that the White House is holding an event like this, a Food and Hunger Summit. The last

one was more than fifty years ago. And the idea is to really continue to push the idea that there are folks um in America who remain hungry even despite the fact that we have as much wealth as we do in our nation, and really trying to get there and address that. So expect a lot more UH announcements to be made from that. You're seeing a lot of companies going in and making their own commitments in line with this summit um and yeah, we're definitely expecting to

hear some more details as the day goes on. Thanks, as always, Bloomberg Government reporter Emily Wilkins with us from the nation's capital. Read more about these stories on Bloomberg dot com or on the Bloomberg terminal. Follow all the latest on Bloomberg Radio in Washington, Bloomberg and one oh five point seven FM, h D two SMP futures trimming their declines, now down eight points, STOLE features down thirteen,

NASTAC futures down seventy one. The Tenure Treasury is up six thirty seconds now yield three point nine two percent. Bloomberg surveillance is next for Karen Moscow. I'm Nathan Hager, and this is Bloomberg