Bloomberg Daybreak: September 30, 2022 - Hour 1 (Radio)

for investors. This morning, Shock grief and outrage over the random stabbing death of a New York City E M. S veteran plus Russian President poop and will finalize annexation of Ukraine region. I'm Blachael Blair. More ahead, I'm John Stash. Aaron Sports The Big Mets Brain Series begins to Night Atlanta, Aaron Judge of the Yankees, host the Orioles NFL Bengals beat the Dolbury. That's All's training ahead on Bloomberg Daybreak

on Bloomberg. He Living Free on 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 on Bloomberg Radio dot com and via the Bloomberg Business and good Friday morning. I'm Nathan Hagar and I'm Karen Moscow, and US index futures are higher this morning. We're coming up to five o one on Wall Street, and we check the markets every fifteen minutes

throughout the trading day. On Bloomberg SMP futures up thirty five points down futures have two D thirty one, and NASDACK futures have one hundred three ten year treasury up eighteen thirty seconds, you know, three point seven one percent. Nathan, all right, Karen, we'll get back to markets in a minute, but first we want to get to the latest on Hurricane Ian. It is a hurricane again, set for landfall later today in South Carolina. President Biden has already declared

an emergency for the state. This woman is in Fort Myers, Florida, where Ian came in as a powerful category four storm. I am the stupidest woman. I'm from Florida. I went through Andrew Irma, I decided to stay. Did not know it's going to get to be a four and a five. President Biden says Ian could be one of the deadliest worms in Florida's history. The numbers of still are still unclear, but we're hearing early reports of what may be substantial

loss of life. When the President says he has been in touch with Florida Governor Rhonda Santis, the governor says it will take time to confirm casualties, but rescuers have been busy. There's been more than seven hundred confirmed rescues and there's likely many more than that that will be confirmed as more data comes in. Governor to Santa says the state is trucking in supplies to those in need,

but blackouts could last for days. And we'll think you posted on the latest damage and disruption from this store. And but first, Nathan, let's turn back to the market's It's the last day of the third quarter and stocks begin this session at a twenty two month low. So far this quarter, one point three trillion dollars has been wiped off the value of the SNP five D and c f r A. Chief investment strategist Sam Stovall says October could be even worse, even though September does have

a reputation of being volatile. Of the trading days in September typically see a one percent move either up or down, but we've had two and a half times that number this year. And if you think September is bad, just wait till October because that traditionally sees thirty six more volatility than the average for the other eleven months of the year. Cef A Sam stove All expects stocks too soon retest their lows, and hawks talk from the fed's

been weighing on markets, Karen. San Francisco FED President Mary Daily says the Central Bank is committed to raising interest rates until it restores price stability. Navigating the economy toward a more sustainable path necessitates higher interest rates in a down shift in the pace of economic activity and the labor market, but for now inducing a deep recession the kind we had back in the nineteen eighties, or some would even think of the Great Recession, that is not warranted.

San Francisco FED President Mary Daily says she is worried about possibly tightening policy too much. Well, the Fed is keeping its eye on eight nomic data. Nathan, including another report on sentiment this morning we get September is reading from the University of Michigan at ten am Wall Street Time, and we get a preview from Bloomberg's of any down Judas the University of Michigan consumer sentiment index has been recovering after setting a record low in June gasoline prices.

If he's somewhat dangerous, persists, though there's talk about recession with the Federal Reserve raising interest rates to fight inflation. Moreover, Bloomberg Economics says Americans are worry of the inflation outlook with uncertainty about the costs are living running at the highest in forty years, they Judas Bloomberg Day Break, All right, Vinnie, thank you. In Europe this morning, the pound has rallied back to levels last scene before the government announced controversial

tax cuts last week. Let's go live to London and get the latest with Bloomberg's You and Potts. Good morning, Good morning Nathan and caring the pound higher for a fourth day today is his trade is speculate the government will be forced to backtrack from his big package of unfunded taxcts. The butt of the currency and bomba Kit's

earlier this week. The move caps an extremely volatile week for UK markets, which saw the dramatic intervention of the Bank of England's new prime minister List Trust is at the Conservative Party conference this weekend, and one flash opinion poll puts A thirty three points behind the opposition Labor Party. Elsewhere, just in the last few minutes, your area inflation has hit double digits for the first time ever. In London, I'm you in parts Bloomberg, daybreak, All right you and thanks.

In Asia, overnight, starks fell again, putting the regional benchmark on course for its worst a monthly performance in two thousand and eight. We get the reak out from Bloomberg's Juliet Sally In Singapore. Good morning, Juliet, Good morning Karen. The ms CI Asia Pacific Index remained at April twenty twenty lows to cap at seventh straight week of declines. Equities in Japan, which has the highest weight in the

Asia Index, were the biggest losers. Chinese tech shares listed in Hong Kong also under pressure, and over the week, the regional benchmark index fell four and a half percent, the most in three months. In Singapore, Juliette Sally Bloomberg daybreak, All right, Juliet. Thanks. Back here in the US, we have some corporate news of note, including the end of an era at Facebook parent Meta CEO Mark Zuckerberg's outline plans to reorganize teams and reduce headcount for the first

time ever. Bloomberg Technology reporter Kurt Wagner broke the news late yesterday. In some cases, you know, when someone leaves a team, they're just not going to fill that role again. Some people are going to be moving from team to team, and then in some cases they're gonna be kicking out low performers, right, which is a pretty drastic thing that we haven't seen that Facebook in a long time or ever.

And so this really just feels like a moment, right this company that has been growing and expanding for eighteen years finally hitting a bit of an issue here. Bloomberg's Kirt Wagner says Metal will likely be a smaller company in three than it was this year. Right now, the shares are up more than one percent in early trading. Well on the flip side, Nathan shares a Nike down more than nine percent. The company reported a surge in

inventory and is pushing through discounts that her profitability. Higher freight costs and foreign exchange effects are also hurting Nike and Micron is slashing pretty auction, Karen because of a steep plunge in demand. The biggest US chip maker is forecasting quarterly sales almost two billion dollars below estimates, so the stock is higher. On news, Japan will subsidize Microns

push to produce its new advanced chips in Hiroshima. Straight ahead, we have your latest local headlines, plus a check of sports. This is Bloomberg and it is now five oh seven on Wall Street. We're fifty three degrees in Central Park on an accident on the westbound Hempstead Turnpike near Root one oh six. Details coming up in traffic. First Michael bar with more on what's going on in New York and around the world. Good morning, Michael, Good morning Nathan.

A suspect is in custody and the fatal staffing of a sixty one year old f D n Y Emergency Medical Services lieutenant. Police say she was stabbed multiple times yesterday afternoon in an unprovoked attack while on duty. New York City Mayor Eric Adams. One of our heroes, Alison russo At, twenty five year veteran of the department, stabbed by an assailant. Mayor Adams says Russo was standing outside f D N Y E M S station in Queens when the violence occurred. Russo was taken to a Queen's hospital,

where she was pronounced dead. Russo's death sparked an outpouring of emotion and sympathy outside the hospital, with lots of tears and hugs. N YPD Commissioner keeaching Seoul, this deadly, senseless, broad daylight attack on a uniformed E M team member is a direct assault on our society. It is the latest consequence of the violence that we relentlessly fight in our city. The suspect of thirty or four year old man has not been charged yet. Police so far did

not have a motive for the stabbing. Russian President Vladimir Putin is expected to deliver a major address at the Kremlin today formerly annexing for Ukrainian regions. This after wholing what Ukraine and Western countries said, we're phony referendums in the Russian occupied areas, President Biden made it clear the US will never recognize Russia's attempt to claim Ukrainian territory. The so called referendum was a sham, an absolute sham.

The results were manufactured in Moscow. President Biden made his comments to Pacific Island leaders at the White House. The wife of Supreme Court Justice Clarence Thomas, appeared before the January six committee investigating the Capitol riot in the days after the election. Jenny Thomas urged the Trump White House to fight back and emailed state lawmakers asking them to

help overturn the election results. Committee chairman Benny Thompson said that she answered some of the questions that were put before her. Her lawyer later came out and said she answered all the questions. The Senate voted overwhelmingly to approve an interim spending bill that would keep the government open until mid December. The House still has to consider the legislation. Global News twenty four hours a day on air and on Bloomberg Quicktake, powered by more than twenty seven hundred

journalist and analysts more than a hundred twenty countries. Michael bar this is Bloomberg, Na't it okay? Michael? Thank you coming up to five ten on All Street time for the Bloomberg Sports up TAKEO. Morning John Stenshown or Morning Nathan. You can't underestimate the significance of this Mets Braves series that begins tonight in Atlanta. Though both teams are going to the playoffs, winning the division means not having to

play in the best of three wild cards series. It means being able to set up your rotation until your best pictures can go to the start of the division round. And it means not having to play the Dodgers until the NLCS. Dodgers have won eight games. Mets lead the Braves by one. They'll have Jacob Graham on the mount tonight with Max. Shows are going tomorrow, and the Mets have called up their top prospect, twenty year old catcher Francisco Alvarez. He might be the d h tonight. Yankees

home for the Orioles. When Hank Aaron broke Babe Ruth's home run record nineteen seventy four, he broke it in his first game after tying it. We'll see Daron Judge does. Likewise, Judge has had this remarkable season as a free agent to Babe. The Yankees want to resign him. The team president is Randy Leming like Yankee. Uh we love having him be Yankee. You know, being a Yankee is different

than anything else, So I'm hopeful. All I can tell you is health Steinbrenner, the entire organization, myself, Brian Kishman, We're not gonna leave any stone on turned trying to bring him back. Andy Leavin, a guest on The Bloomberg Business a Sports her tonight at seven, or listen to the the podcast on Apple, Spotify, Stitcher or anywhere you get through podcasts. There's a right football kicking out. Week four.

Cincinnati rallied fourth quarter beat in Miami fifteen. First loss with the Dolphins leaves Philadelphia as the NFL's loan on being. Despite the storm in Tampa, the Chiefs Bucks game will be played in Tampa on Sunday. John Stash that were Bloomberg Sports Nathan all Right, John, thank you. SMP futures right now are up thirty three point. Stown futures down two to twenty are up two to twenty four. They are higher this morning, and NASTAC futures are on the

rise by night points. We check in next with St. Dwack, chief investment officer at Flow Bank, looking ahead to the fourth quarter after three straight down quarters this year. This is Bloomberg Bloomberg eleven three oh weather mostly cloudy, upper sixties today, light rain from Ian moves. In tomorrow we'll have a high near sixty five and showers Sunday low sixties.

Right now fifty three in Central Park markets, headlines and breaking news twenty four hours a day at Bloomberg dot Com, The Bloomberg Business at and at Bloomberg Quick Takes a Bloomberg Business Lash and I'm Karen Moscow. The updates brought to you by s E. I said managers don't get results that are off the charts when their solutions are off the shelf. Learn how sei is operating platform can turn infrastructure into a competitive advantage at sei C dot Com.

Slash Tech European stocks rising with government bonds signaling a potential recovery at the end of a tumultuous week in market. US DOCK index futures are also gaining following another bruising session on Wall Street that took the SMP five hundred down two percent of the lowest in almost two years, and send the tech heavy NASDAC tumbling almost four percent. We checked the markets every fifteen minutes throughout the trading day.

On Bloomberg, SNP futures of twenty eight points this morning, down futures of a hundred eighty three and now stack futures of eight two. The decks in Germany is up

one percent. Ten year treasury up eighteen thirty seconds, you know, three point seven one percent yield on the two year four point one six percent, nine x screwed oils at one point four percent, up a dollar seventeen at eighty two dollars forty cents of barrel comes gold up six tenths percent or ten dollars eighty cents at sixteen seventy nine thirty announced the euro point nine two five against

the dollar. British found one point one one seven five they had one forty four point to eight and Bitcoin this morning of a third of u percent at nineteen thousand, five hundred dollars. That's a bloomberg business flash. Now here's Michael Barr with more on what's going on around there.

Good morning, Karen Ian. Now, a hurricane again is threatening to carve a new path of destruction through South Carolina today and when it roars a short north of Charleston, forecasters say the storm will drive a surge of water into the city of three to six feet. Government officials say, Russian President Vladimir Putin will officially annex four occupied regions

of Ukraine totally percent of Ukraine's territory. At a formal signing ceremony today, the U N Secretary General will condemn Russia's action, saying it has no legal value, it must not be accepted. In baseball, the Yankees host the Orioles Tonight, Aaron Judge will go for sixty two Homer's passing Roger Merras's a L record. Last night, the Red Sox beat the Orioles five three. The A's lost the Giants. One

Thursday Night football, the Bengals beat the Dolphins. Global news twenty four hours a day on air and on Bloomberg Quicktake, powered by more than journalists analysts more than a hundred twenty countries. Michael Bard is Bloomberg. Michael, thank you. It's five twenty on Wall Street Live from the Bloomberg Interacted Broker Studios. This is Bloomberg Daybreak, as we get ready to close the books on another rough quarter for equities.

Were joined this morning by st. Dwack, chief investment Officer at Flow Bank. STI. Good morning. We're seeing some relief going on in futures this morning, but we've seen one point three trillion dollars in value white from the SMP five hundred this quarter. How much further could this bearishness go? Good morning, Well, that that is the question on everyone's mind.

I think there is still room to go as we continue to get some bad news or some bad surprises, including from a couple of companies ahead of the earning season. But at the same time markets have become so negative. Sentiment is so bearished, positioning is very light, cash levels are high. I think the downside is starting to become more limited. Now are you looking for a bottom pretty soon? Then where would that to be for you? Well, so

the level is is tricky at this point. We've seen some very big move in moves in markets just throughout the day right so to this morning's future is could very easily reverse later. But I think at some point in October we're going to start to see a reversal and risk assets. It will take time and it probably won't be in a straight line, but I think we are going to have a better better performance into the

end of the year. Despite the FED continuing to hammer the drum for higher for longer interest rates, you think we could start to see a little bit more of positive sentiment move in. Despite that, I think the market knows that higher for longer is staying that there won't be a Fed pivot even if growth starts to weaken.

But you're getting continued signs of disinflation and I think that is going to continue, and that's going to help alleviate some of the market fears that the FED doesn't have to be more aggressive than what they've laid out right now. And at some went within the next sort of month and a half or something, once we get to that November meeting will have hiked over four UM

in just you know, six or nine months. The Fed knows that there is a lag effect, and it might give it a little bit of time, so we might be closer to something, maybe not a pause and normalization in the rates or a few smaller rates to come, but the bulk should soon be behind us, and I think that's going to help markets as well. So where

are you going to look for opportunity? Then if we start to see interest rates level off at least, where is the opportunity, Well, we're looking to gradually add back to equity markets, um and again this is going to take a bit of time. For now, it really still is all about cash. But within equities, I think tech should do well at the next earning season. I think they'll prove to be more or the majority of the company's will prove to be more resilient, and I think

that will help lead the market higher. How do you see shaking out overall? We've had a lot of earnings down grades up to this point. We've gotten yet more news from meta platforms about job cuts, Nike coming in with some negative readings as well. Is there further downgrades in store or could we see companies start to position themselves a little more positively. I don't think we're gonna see a lot of more positive What we're seeing is that in general, end demand hasn't softened so much. It's

a lot. I mean, it's margins for Nike, UH defects revenue obviously they didn't count it so much, but that's not helping UH very often. You've still seen that sort of consumption hold up a little bit. And some of these job openings or job cuts are feeding right into what the Fed wants to hear, right, um, so, so that's going to be a little helpful. But I do think the market is prepared for bad news and is starting to price in quite a bit of bad news

from the earning season. We'll see if we get a couple of big surprises that are much worse than expected. But I wouldn't expect too much of much better than expected. Maybe just the market thinking not worse than expected. Just about thirty seconds left here, Steve. But when it comes to bad news, what's you're feeling on whether we could be in for a recession, whether it could be a long lasting recession. What's your call on that for now? I mean, I think we're going to have some kind

of slowdown, or as in a protracted slowdown. I don't know how deep it's going to be. I think we can hover close to zero or below UM and then recover at some point next year. But I'm not in the deep procession camp today. Thanks est, great having you on with us this morning. S D. Dwack, chief investment Officer at Flow Bank. As we watch futures rise just a bit, SMP futures are up twenty five point, STAFF futures up a hundred seventy four, and NASTAC futures a

gain of sixty nine points. The tenure treasury is up eighteen thirty seconds, yield three point seven one per cent and yield on the two year Right now four point one five. You're listening to Bloomberg Daybreak Bloomberg eleven three oh weather mostly cloudy, upper sixties today, light rain for me, and moves in tomorrow. We'll get into the mid sixties. Showers for Sunday, low sixties for highs Right now fifty three in Central Park, broadcasting live from the Bloomberg Interactive

Broker Studio in New York. Bloomberg E Living Freedom to Washington, d C. Bloomberg to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the Country, Sirius XM to the one nineteen and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak and it's five thirty on Wall Street. Good morning. I'm Karen Moscow, I'm Nathan Hagar. We're about four hours

away from the open of US trading. Let's get you up to date on the news you need to know at this hour. Her kane Ian is due for a second landfall today north of Charleston, South Carolina. President Biden's declared an emergency for the entire state. South Carolina. Governor Henry McMaster's urging residents to get ready, Call your family, call your love once, tell them where you're gonna be. Let let them know that so they won't be worrying

about you. Meantime, the cleanup and recovery in Florida is just getting started. At Governor Rhonda Santa says first responders have performed more than seven hundred rescues. There's not been in these rescue efforts, um you know, decease people found as of yet. Now that may change, of course. Governor just Santa says power outages in southwest Florida could be lengthy. Well. So the markets, Nathan us futures are higher as we close out the trading week. Yesterday, the S and P

five abready closed it at twenty two month low. Joanne Pheeney, as a portfolio manager at Advisor's Capital Management, you have to look back at history and recognize that the market sells off the most right, but tend to tend to do that before recessions begin, and they tend to recover

before we even know officially we've had a recession. And so for a long enough term investor one a year, two years, three years, there are some pretty good opportunities out there, but one has to be able to stomach the volatility, which doesn't look like it's going to go

away anytime soon. Joan Phoeney with Advisor's Capital Management says one point three trillion dollars has been wiped off the value of the SNP five hundred this quarter, and value of Nike is getting wiped off as well, care and shares her down more than nine percent in early trading. The sportswear company reported inventories surged and it's had to push through discounts that hurt profitability. Higher freight costs, markdowns and foreign exchange effects hit Nike's gross margin in the

latest quarter. Well. Micron is slashing production because of a steep plunge in demand. Nathan, the biggest U S ship maker, is forecasting quarterly sales that are almost two billion dollars below estimates, but the stock is higher this morning on news that Japan will subsidize Micron's push to produce its new advanced ships in Hiroshima futures this morning, we're watching those.

They're higher. SNP futures up twenty seven points now features up a hundred eighty two nowsday future is up seventy five. The decks in Germany's up nine tenths of upper cent ten year treasury of twenty thirty seconds, you'll three point seven zero percent. They yield on the two year four point one five percent. Nine nights. Screwed oils up one per cent or eighty three cents at eighty two dollars six cents of barrel comics gold up seven ten percent

or eleven dollars ten cents. In sixteen seventy nine eighty announced the euro point in one nine against the dollar and the British pound one point one eight six one four point to five. Straight ahead your latest local headlines, plus a check of sports, and this is Bloomberg. Thanks. Starting five thirty three on Wall Street, fifty three degrees in Central Park, still dealing with the accident westbound Hempstead Turnpike. Michael Barr has more on what's going on in New

York and around the world. Michael, thank you very much. Nathan, the suspect is in custody and the fatal stabbing of a sixty one year old f d n Y Emergency Medical Services lieutenant. Police say Allison Russo was stabbed yesterday afternoon in a random attack act while on duty standing outside inn f d n Y e m S station in Queens. Russo was rushed to a hospital where she was pronounced dead. New York Mayor Eric Adams she was working for this city. She plays paid the ultimate sacrifice

because of that. Russel's death sparked an outpouring of emotion and sympathy outside the hospital, with lots of tears and hugs. Laura Kavanaugh was the acting f d n Y Commissioner. Lieutenant Russo exemplified f d n Y e m S. She served the city for twenty five years. She was a World Trade Center first responder. She was cited multiple

times for her bravery and her life saving work. The suspect of thirty four year old man has not been charged yet, and officials says a Russian strike on the Ukrainian city of Zaporija killed at least twenty three people and wounded dozens. At least twenty eight others were wounded when Russian forces targeted a humanitarian convoy heading to Russian occupied territory. It happened just hours before Moscow planned annex more of Ukraine and an escalation of the seven month war.

President Biden called Russia's so called referendum aimed at annexing Ukrainian land and absolute sham the United States, who want to be very clear about this, The United States will never, never, never recognize Russia's claims on Ukraine sovereign territory. Biden made his comment speaking to Pacific Island leaders at the White House. The wife of Supreme Court Justice Clarence Thomas, appeared before the January six committee investigating the Capitol Riot. Jenny Thomas

answered questions behind closed doors for four hours. In the days after the election, she urged the Trump White House to fight back and emailed state lawmakers asking them to help overturn the election results. Global News twenty four hours a day on air and on Bloomberg quick Take, powered by more than twenties seven hundred journalists and analysts more than a hundred twenty countries. At Michael bar This is Bloomberg, Nathan,

Thanks Michael Street. John Stash has a Bloomberg Sports update for several months now, the Mets have been trying to hold off the Atlanta Braves. This weekend, we'll determine whether they can continue to him. That's all. The one game lead, one win in the three game series gives them the tiebreaker. The Mets changed their rotation and they moved Jacob to Graham up to go tonight. He actually comes off a bad out. He Max Scherzy goes tomorrow. The storm's gone

through Atlanta. The weather for the series should be okay. Yankees os the Orioles. Aaron Judge has tied Roger Marris now tries to surpass him. Roger Marris Jr. Has been attending all of Judge's recent games. Actually get to meet, you know, Aaron's mom, coming here and sit with her.

That was a lot of fun. Get to know Herrigane a little bit about the family, and uh, you know, getting to kind of see why Aaron carres himself the way he does because obviously getting to meet her, uh, spending some time with her, you can kind of see that the apple don't fall far from the tree. As great as Judges season has been, there are some who feels show Hey Otani should win a second straight m v P. He's fourth in the league and home runs

and second in wings. Last night, at his fifteenth win, struck out ten. Shnny took a no hitter to the eighth inning. Last Sunday, Dolphins quarterback to a tongue. Baolia looked wobbly like he had a head injury, only missed three snaps. Said later it wasn't his head but his back.

The union wanted an investigation into why he was allowed to continue to play, and they may want another one to a cleared to play again last night in Cincinnati, in this time a definite head injury perhaps his neck as well, to have taken off the field and a stretcher taken to the hospital. He is expected to be released today. Miami had to lead in the fourth quarter but lost the Bengals twenty seven to fifteen. That's the first lost of the Dolphins at least Philadelphia, as the

NFL's loan Undaten John Stash were Bloomberg Sports NA. Thanks John seven on Wall Street time for the Tri State Business Report. Here's Bloomberg z Cory. New York Governor Kathy Hoco says the state will follow California in requiring all

new vehicles sold by to be zero emissions. HOCO first announced in New York deadline in September one, but the state could not begin implementation until California final I as its own ban An American Airlines group alliance with Jet Blue, is placed most of flights by US carriers in New York's primary airports into the hands of two major airlines. That's according to an executive from rival carrier Spirit Airlines

at an anti trust trial Thursday. Princeton University is moving to several financial ties with fossil fuel companies as the school distances itself from major greenhouse gas emitters. At your Bloomberg Dry State Business Report, I'm Ed Corey. Thanks had five thirty eight on Wall Street. Bloomberg Radio was on the air from San Francisco to New York, London to Hong Kong. Let's check in with our global news team for some of the top stories heard on our three

hundred affiliate radio stations around the world. I'm Steve Potas Content and Wins. In New York. We're talking about Versace's planned to revive it's Maddison Avenue, bum Corney, donahoan ktr H in Houston. Amazon will close for but its fove customer calls. In terms of the US, I'm Genus Cerretti and for wfl A in Orlando, I'm reporting that Airbnb guests in the path of Hurricane Ian will have to rely on the generosity of hosts for refunds. I'm Caroline

head Kill blombag dav Dishitotium in London. We've been reporting on the recovery in the pound a week home from the chances many budgets that spoked turmoil in the market. IMD Corey on w A T A M in Cleveland. I'm reporting Gaviliers owner Dan Gilbert has dropped out of Forbes list of the top five richest sports owners in America. And those are some of the stories are twenty Bloomberg journalists and analysts are working on this morning around the world.

It's nine on Wall Street. The following is an editorial from Bloomberg Opinion. This editorial was written by the Bloomberg Editorial Board. I rushed to dump UK government bonds following a botched budget announcement, forced a dramatic intervention by the Bank of England this week. A clearer indictment of economic mismanagement would be hard to imagine having art it so calamitously. What can Britain's new Prime Minister, Liz Trust due to repair the damage? The best advice for Trust comes down

to this, stop trying to be exciting. This means coordinating quietly with and if necessary, deferring to officials at the Bank of England, who are responsible for curbing inflation and restoring financial stability. The perception that the Treasury and the Central Bank are at odds over macro economic policy is fatal to both aims. Many Tories must be missing Trust's predecessor, Boris Johnson, the leader they belatedly sacked for serial mismanagement.

If that doesn't induce trust to reset, what will. This editorial was written by the Bloomberg Editorial Board. For more Bloomberg opinion, please go to Bloomberg dot com, slash Opinion or O P I n go on the Bloomberg terminal. This has been Bloomberg opinion, and you can hear Bloomberg opinion editorials every weekday at this time. Terminal customers can read more at O P I n go. We're gonna talk much more about the volatility in the pound after

the release of Prime Minister Trust's mini budget. We're speaking next with Libby Cherry f f X and rates reporter for Bloomberg News, joining us from London this morning and looking at the cable rate right now, pretty much where it was before that budget was announced, at one point one f nine against the dollar. This is Bloomberg Bloomberg eleven three oh Weather mostly cloudy today, up for sixties for highs light rain tomorrow, mid sixties, showers for Sunday,

low sixties to round out the 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 Attend at Bloomberg Quicktape. He's a Bloomberg Business Flash and I'm Karen Moscow. European stocks are rising along with government bond signaling a potential recovery at the end of a tumultua this week in markets, US dot in nex

futures are also gaming. Following me another bruising session on Wall Street that took the sm P five hundred down to two percent, to the lowest in almost two years, and sent the NASDAC tumbling almost four percent. We checked the markets every fifteen minutes throughout the trading day. On Bloomberg guess and P futures up twenty seven points down futures have a hundred seventy nine and ASDAC futures up seventy five. The decks in Germany is up nine tenths

of upper cent. Ten year treasury up twenty four thirty seconds, held three point six nine percent yield on the two year four point one five percent. NIMEX screwed oil is up nine tenths percent or seventy cents and eighty one dollars ninety two cents of barrel comes gold up half percent or eight dollars fifty cents at sixteen seventy seven

ten an ouse. The euro point nine eight o nine against the dollar British found one point one one six six and the end at one forty four point three four and Bitcoin this morning is up almost two tenths of up percent at nineteen thousand, five hundred dollars. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world. Karen, thank you very much. A revive hreitane and is bearing down on South Carolina's coast and the historic city of Charleston, with

forecasters predicting a storm surge and floods. Earlier, Ian caused kind of traffic damage in Florida, leaving people trapped and flooded homes and causing several deaths. Vladimir Putin will sign documents formalizing Russia's annexation of four occupied regions in Ukraine in a show of defiance Ukraine, the US and Allies called the so called referendums a sham. Baseball, The Yankees host the Orioles tonight. Aaron Judge will go for home run number sixty two, passing Roger Maris's a L record.

Last night, the Red Sox beat the Orioles five three. The A's lost the Giants. One Thursday Night football, the Bengals beat the Dolphins. Twenty seven Global News twenty four hours a day on here and on Bloomberg Quick Take, powered by more than twenty seven hundred journalists and analysts and more than a hundred twenty countries. Michael Barr and this is Bloomberg, Nathan Michael. Thanks, It's five pay nine on Wall Street Live from the Bloomberg Interactive Broker Studios.

This is Bloomberg Daybreak. We want to focus on the currency markets this morning, specifically the pound. We've been watching it all week. It has had quite the week, hasn't it. After UK Prime Minister Liz Trust came out with those tax cuts, than the Bank of England stepped in with unlimited bond purchase plans. You look at the cable rate this morning though, and it's almost back to where it started.

Let's bringing Libby Cherry for more on this, us an effects and rates reporter for Bloomberg News and joins us now from our European headquarters in London. Libby, is this calm returning to the cable market or is it too soon to say that? Hi that I think it's probably a bit too seen to say that. Um So, what we've kind of seen over the last week, as you say, we've seen some very volatile trading, you know, with the you know, the pound kind of whip soaring on similar

sort of you know, event risks and so on. But I think the two things that have a ready been buoying the pounds in the laws week that a help it kind of claw back from this record low. I mean, the one thing that you've already mentioned exactly is the Bank of England's intervention in the guilt market. I think really help reassure people, um, you know that there isn't going to be this sort of further ternel in the market, that there are authorities waiting on the sidelines to pick

up the pieces. The other thing that's really helped it on its last leg higher in the last day or so in overnight is that there's expectations or perhaps hopes would be the better word, that the UK government might actually you know, water down some of its policies or indeed, you know, give some further assurances to the market that

there you know, that they are thinking about their fiscal credibility. Well, what's giving traders those assurances, Libby, I mean, we heard from the Prime Minister Liz trust She gave a bunch of interviews to local radio stations in the UK and seems to be doubling down on the tax cut plan.

What's giving currency traders the idea that maybe she could back off a bit well exactly, but I think what kind of took people by surprise is that there is a planned meeting today with the between the government and

the FIST and the UK's Fiscal Watchdog. What's really significant about is is that the Fiscal Watchdog was initially sidelined um when these original stimulus plans were being kind of uh sort of developed, if that makes sense, And now that they're sort of communicating with them, there's a sense that the government is trying to at least kind of you know, acknowledge the facts by bringing the O b R in that they are thinking about, you know, how this will kind of affect the UK's economy long term.

Having said that, you are completely right, I think, you know, especially ahead of the Tory Party conference, um that's this Truice party this weekend, it does seem pretty unlikely that there's going to be any real significant shift on policy anytime soon. Can we see any further shifts from the Bank of England Obviously they came in with that announcement of unlimited long dated guilt purchases. We see more intervention from the b o E. It's an interesting question and

one that people continued to rack them brands over. The trade traders have been you can see in the swaps market they were pricing in a sort of small chance of a hike ahead of the next scheduled policy decision, but those bats have been kind of taped down and um for the moment, I think most people are thinking about you know, potential um potentially larger move from the Bank of England at its next policy decision in November.

At the moment, traders have fully kind of priced in and a hundred and twenty five basis point move from the Bank of England by the time of that meeting, which would be you know, a very large and you know, unprecedented move by the Bank of England since its independence. All right, Libby Cherry covering rates and f X for us from our London headquarters. Libby, thanks for this and

just checking the cable rate right now. The British pound is trade at one point one one seven four against the dollar, after hitting a record low earlier this week. Karen Nathan, it is five fifty three on Wall Street. Time for the Bloomberg Law Report. We get to the legal stories we are launching this morning from Bloomberg's Jeff Bellinger. A federal judge ruled that a New York based Christian adoption provider can legally refuse to provide services to same

sex and unmarried couples. Sources say Uber has lobbied behind the scenes against legislation to nullify some non disclosure agreements for workers alleging sexual harassment and assault. The National Labor Relations Board found the Tilton Hotels violated labor laws when it gave housekeepers in Alaska more work without consulting their union. Bloomberg Law everything you need, all on one legal research platform, including guidance analysis and Bloomberg Market Intelligence. Find out more

at Bloomberg law dot com. All right, Jeff, thank you. Now, another legals story we're watching brings us to the election. This weekend, Senate Committee approved the revamp of the Electoral Count Act. That's the seven law that sets out congressional procedures for certifying presidential elections. The legislation is intended to prevent a repeat of the election when former President Trump

and his allies sought to challenge the results. Both the Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell support the bill. For more in the legislation, Bloomberg June Gronso speaks to elections law expert Richard Brifo, a professor at Columbia Law School, and so the Senate bill is a bipartisan effort. Republicans Susan Collins and Democrat Joe mention what does it do? In general? It does two very

significant things. First, it declares that the role of the vice president, who is technically the president of the Senate and who under the Constitution has to preside over this process, has an entirely ministerial role. The vice president says as a stand up there and to clear of what happens next, and says, here's the results. That the vice president has

no substantive role. May have called this was one of the high points of the controversy after the last election, when then President Trump insisted that then Vice President Pence had the authority to declare that certain electoral votes were invalid and not to count them, and Pence himself said he didn't have that authority. This makes it clear that the vice president has no such authority, that the vice president's role is just ministerial, like a secretary. And everyone

always thought that was the rule. But because Trump made such a noise, and it support is about such a noise that the vice president could in effect change the result, it's probably important that that be clarified. Second, it rather dramatically raises the threshold for objections under the current law.

All you need to object to the electoral vote of a state and stop the whole process, and forced the two House of Congress to meet separately to debate the objections is one member of the House and one member of the Senate, just one from each the Senate. Bille raises the threshold to one fifth of the House and one fifth at the Senate, so that's a dramatic increase. Surprisingly,

got near unanimous approval by the Rules Committee. Not Surprisingly, the one objection came from Senator Ted Cruz, who of course led an effort to challenge Biden's election victory. He said, quote, this bill is all about Donald J. Trump. It is about Donald Trump, isn't it. Yes. I mean everyone agrees that the current Electoral Countact is flawed. It's very unclear. There's a lot of inconsistencies in it. There are particular

problems if there's a disagreement from within a state. There was always a problem with that very low threshold of objections, although until recently it had hardly been used. But certainly the election of attack on Congress in January six just sort of highlighted the significance of these uncertainties and the extreme importance of getting them resolved. And that's Richard Brifo, a professor at Columbia Lass School, speaking with the Bloomberg

Student Grosso. Catch more of that interview plus analysis of the latest legal news by listening to the Bloomberg Law Show at ten pm Eastern Time or subscribing to the Bloomberg Law Podcast. And attorneys can find exceptional legal research and business development tools at Bloomberg Law dot com. And again,

futures this morning are on the rise. SMP futures up twenty two points down, futures have a hundred forty nasdack futures up sixty two and the decks in Germany's up eight tens of per cent, and the tenure treasury of twenty one thirty seconds. He'll three point seven zero percent yield on the two year four point one five per cent and the euro point nine eight oh two against the dollars still ahead on Bloomberg Daybreak and check on the business headlines and all the news you need to

start your day. And this is Bloomberg