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Good morning, I'm John Tucker.
And I'm Karen Moscow. Here are the stories we're following today.
Karen, we're going to bring you the most recent Bloomberg presidential poll and the tail the blowout earnings from Tesla. But we begin with labor problems at Boeing factory workers that rejected a new contract. Let's get the very latest with Bloomberg's Lisa Matteo. Lisa, good morning, Good.
Morning, Johnny.
Have this tenetive offer, which would have increased machinist wages by thirty five percent over four years, it was voted down by sixty four percent of union members who cast their ballots. Now, that was smaller than the ninety four percent vote back in September, but it's still a setback for Boeing to get its operations back on track. CFO Brian West. He said the company expects to burn around
four billion dollars in cash during the fourth quarter. Now, that would bring the total free cash out free cash outflow to around fourteen billion for twenty twenty four and that's the worst performance since the pandemic effected our travel in twenty twenty Boeing shares right now down about three percent now, although this latest contract offer was a bump up from the initial twenty five percent pay increase, the biggest sticking point for workers reinsteing their defined benefit pension plan.
So for now, John, it's back to the negotiating table after six weeks of talks in New York. Lisa Mateo, Bloomberg Radio.
All right, Lisa, thank you all. Another major story that we're following this morning involves our latest pull on the presidential race, and the contest between Donald Trump and Kamala Harris can't be much tighter. Bloomberg Samy Morris has the latest Bloomberg News Morning Console poll in Washington.
Donald Trump and Kamala Harris are now in a statistical tie among likely voters in each of the seven swing states. Each candidate now has forty nine percent support among likely voters, with a margin of error of one percentage point. So to move the needle, Trump's campaign as aiming to mobilize voters who haven't typically turned out. Harris has recently looked to fire up women and pick off moderate Republicans who aren't Trump devotees. Trump has an advantage on the economy.
Thirty six percent of likely voters called the economy the single most important issue determining their vote, and Harris scores higher on mental fitness, honesty, and compassion. In Washington, Amy Morris Bloomberg Radio.
Amy, Thanks, And last night in the swing state of Pennsylvania, Kamala Harris spoke to undecided voters at a CNN Trump a town hall. She attacked Donald Trump, warning he's increasingly unfit for office and criticized his past praise for dictators and on the heels of a report in which Trump's former chief of staff John Kelly said Trump can be generally defined as a fascist, CNN's Anderson Cooper directly posed the question to Harris whether she thinks Donald Trump is a fascist.
Yes, I do, and I also believe that the people who know him best on this subject should be trusted.
It marked the first time Harris used the word fascist to discre Donald Trump. She also took questions from the CNN audience, framing her campaign as one of compromise.
Whether it be what we need to do to actually invest in a substantial way in the industries of the future, in American based manufacturing, in American based industries where American workers and union workers have those jobs in a way that is good paying jobs, that gives people the dignity they deserve.
All of those areas.
I plan on working across the isle and with Congress, including the issue of immigration, which we've got to fix.
Vice President Harrison Zovene that she'd serve as a president for all Americans. Trump responded to Harris on social media, saying she has a warped mind and sees that she is losing.
Meanwhile, John the former president, was in the battleground state of Georgia, holding a faith based town hall in the afternoon and a rally in the evening. He reminded residents that Georgia offers early voting, which e a way you want to do.
I've been one that says, which have a way out and vote, be a little careful, make sure your vote gets counted.
There are ways of doing that too. And the Republican presidential nominee also criticized FEMA for its response to Hurricane Helene, saying FEMA and the White House did not do their job and quote, We've got to change it. Trump heads west to Arizona and Nevada later today.
And Turning to the markets, Karen Nasdaq Future is getting a big lift this morning following earnings from Tesla. Those shares are up eleven percent pre market after the electric vehicle hosted its best quarterly results in more than a year. Tesla's cyber truck sales turned to profit for the first time. On the earnings call, the CEO of Leon, Elon Musk, promised to make Tesla the most valuable company of the world starting with its vehicle sales targets.
I do want to give some some rough estimate, which I think twenty to thirty percent vehicle growth next year, you know, notwithstanding negative accenl.
Events, Tesla CEO Elon Munska in the company conference calls. Tesla's market value has soared by eighty billion dollars this morning.
Well on the flip side, John shares of IBM they're lower, down four and a third percent this morning. The company reported underwhelming sales as it grapples with a slowdown in consulting demand. Expectations were high for IBM heading into earnings. The company star climbed to an all time record earlier this month on the back of enthusiasm about Big Blues software unit and.
In Europe Karents Shares of Barclays trading at a nine year high following the bank's latest earnings report. Let's go to London now and get the latest with Bloomberg's HWN parts you and good morning.
John and Karen. It's a beat from London based Barclays on revenue and profits in the third quarter, better than expected income from the bank's two biggest divisions fueling a five percent increase in total revenues. Barclay's finally delivering on its promise to boost its flagging returns. Things not So Gucci over at carrying the French luxury group warning and your profit will fall to its lowest level since twenty sixteen.
The continuing slump in Chinese demand for luxury hampering a turnaround of the group's biggest label, Gucci, But the turnaround story going better for consumer goods giant Unileva. It shares hire today after reporting sales volumes up for a fourth consecutive quarter in London. I'm une pots Bloomberg Radio, all right.
You and thank you. But we're also following shares at McDonald's this morning. They're seeing a bit of a rebound up about seven tenths of a percent this morning. Yesterday, the stock dropped five percent. McDonald's supplier Taylor Farms is recalling some yellow onion batches produced in a Colorado facility in response to the deadly E. Coli outbreak at the burger chain. McDonald's hasn't yet confirmed the source of the outbreak and has that has led to dozens of illnesses
and one death and ten hospitalizations across ten states. It says that slivered raw onions that go into its quarter pounder burger are the likely culprit of the contamination, though it has not ruled out beef as a potential source.
And Elliott's investment management at the Southwest Lines are nearing a settlement that would avoid a proxy fight for control of the carrier's board. Bloomberg News has learned that Elliott and Southwest are discussing a framework that would result in the shareholder activists receiving several board seats but less than a majority.
And John the Wall Street Journal is reporting that Currig Doctor Pepper has struck a deal to acquire energy drink maker Ghost. The price tag more than one billion dollars. Time now for look at some of the other stories making news in New York and around the world. For that, we're joined by Bloomberg's Mugel bar Michael. Good Morning, Good.
Morning, Karen. Authority stopped a thread against the lection security In Arizona, a man has been charged with terrorism for allegedly hanging white bags of powder from political signs and three shootings. Tempe Police Chief Ken McCoy are.
Tempe police officers arrested sixty year old Jeffrey Michael Kelly in connection with three incidents of shooting at the Democratic National Committee offices here in Tempe.
Police say the suspect had more than two hundred guns. The Gaza Civil Defense says it's a catastrophic situation in northern Gaza, saying in a statement that citizens are now without humanitarian services. There continues to be heavy casualties from a tax carried out by the Israeli Defense Force. US Secretary of St Anthony Blincoln is traveling through the Middle East this week pushing for a peace deal, but it
looks like there's a little hope for a ceasefire. Meanwhile, France pledged to provide a one hundred eight million dollar package to support Lebanon at an international conference. Today, President Emmanuel mccran said massive aid is needed to support the country, where war between a Hesbelah militants and Israel has displaced a million people, killed over twenty five hundred and deepened
an economic crisis. The CDC is now recommending a second dose of the latest COVID nineteen vaccine for people sixty five years and older. Doctor Seline Gounder is the editor at large for Public Health at the Kaiser Family Foundation.
Vast majority of COVID deaths we see today are among older people, so it's quite reasonable to be boosting older people at least twice a year, or even three to four times a year, since the boost only lasts them about three months, especially older people living in nursing homes.
Doctor Gounder spoke to CBS. Automatic emergency braking systems on new vehicles are fifty percent better at reducing crashes at up to thirty five miles per hour compared to vehicles as old as the twenty seventeen models. That's according to new research from Triple A. Research has found that such safety systems in twenty twenty four cars and trucks avoided one hundred percent of forward collisions Greg Brannan is Triple A's director of Automotive Engineering Research.
It was quite a big contrasts with all of the current model year vehicles avoiding a collision entire up to thirty five miles an.
Hour the Triple as Greg Brannan says, though, on the downside, current automatic emergency breaking systems and vehicles are not at all effective. In the night, global news twenty four hours a day and whenever you want it with Bloomberg News. Now, I'm Michael Barr. This is Bloomberg Care.
All right, Michael Barr, thank you. It is time now for the Bloomberg Sports Update, brought to you by tri State out He Here is John stash Hour, John, good morning, Good morning Care.
And the Yankees just blew out to LA. They'll work out today at Dodger Stadium, start the World Series there tomorrow with Aaron Boone very confidently starting his ace.
Garrett Cole.
He's had those moments of truth in tough moments that he's been so good at answering throughout his time with us, and he's proven himself to be a big game pitcher. And we're obviously, you know, blessed to be able to give him the ball to get this thing started.
Dodger manager Dave Roberts may not have the same confidence in Jack Flaherty. He's made three postseason starts and two went poorly, but he did throw seven shutout innings in the Game one against the Mets. He'll be backed up by a very strong Dodger bullpen, helped by a Dodger offense that scored thirty seven runs. And it's four NLCS victories. The Jets have lost four in a row, but their favorite Sunday at New England the Patriots to drop their last six. The son Raddick will play just ended as
long hold out. It'll be the second game for DeVante Adams just revealed it in the jets losing locker room last Sunday in Pittsburgh. Adams criticized his brand new teammates for not having enthusiasm on the sideline.
If we don't have time and I gotta do whatever I gotta do to help to stay move forward, and lack of energy. I mean that's a prerequisite to be able to go out there and have a good year or have a good player, you know, whatever it is. So in my mind it was something that I wouldn't have been able to sleep if I didn't speak.
Up on it.
Another veteran wide out about to get traded. Deal in the works for DeAndre Hopkins to go from one in five Tennessee to six and o. Kansas City Chiefs have three injured receivers. Jamis Winstead taken over as the starting QB in Cleveland for the injury to Shawn Watson. Carolina going back to Bryce Young. Andy Dalton broke his thumb in a car accident season opener for the NATS one twenty to one sixteen loss in Atlanta. Tree Young score
thirty for the Hawks. Cam Thomas led Brooklyn with thirty six. John Stashedware Bloomberg Sports Karen John all.
Right, John, thank you, and the sports update is brought to you by Audi. Visit your tri state Audie dealer today and get behind the wheel of the Audi model you've always wanted.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
It's now five for thirteen of Wall Street. The presidential contest between Donald Trump and Kamala Harris could hardly be tighter. The results of a new Bloomberg News Morning console pollar out and to walk us through it, we're joined down by Bloomberg's Kevin Whitelaw. Kevin, good morning, thanks for being with us. We looked at the swing states, the likely estates that will determine the winner. Doesn't get much closer, does it.
No, it really doesn't. I mean every poll we've seen it just feels the closer and closer it gets, no matter no matter how you look at it. So you know, I think you know, I can promise you that over the next two weeks. The phrase you are going to hear over and over and over from anyone looking at these results is it's all going to come down to turn out. And that's just clear ultimately what is going
on here. This is settled into the exact kind of election everyone had always thought it would be, which is a fifty to fifty election in the states where that are going to end up deciding it. And there's sort of no way around those dynamics. And so it's going to very much come down to the voter enthusiasm and the ability of either candidate to turn out their supporters on election day.
As for the issue that may decide the race, I'm reminded of a phrase from an election some years ago. It's the economy stoopid. How do the candidates fare when it comes to the economy in voters' minds?
Yeah, I mean, I think this was always a place that was the biggest vulnerability for Democrats, given you know, when when people are feel you know, watching, you know, feeling inflation pinch, you know, it's the party in power that's that's going to get punished. You are seeing Kamala Harris close the gap a little bit at least.
Uh.
These pole results are are suggesting that, so she's gaining some ground and interesting that you're also seeing some people sort of get slightly less pessive pessimistic about where the
economy is and what inflation is doing. But you know, too much of this is simply baked in, and you've got a lot of people in the swing states who are looking at the price of groceries, the price of restaurants, these prices they're encountering in their you know, every day in their regular lives, and that's still just difficult with wages not keeping up and so you know, when it comes to who's going to steward the economy better, you know, Trump's do the slight edge, it's just smaller than it
used to be in Kama. Harris has made a lot of inroads on that, and more importantly, she's also made some inroads on sort of the trust question in a number of other key areas. And so I think you're going to see you're seeing the enthusiasm among female voters in particular for her is very high, and that could be a bit of an X factor that could perhaps
not be fully reflected in these results for Trump. It's actually almost the slight opposite issue where you have a lot of enthusiasm, But these are often among voting groups, particularly young men who historically don't vote it terribly high rates.
And let's focus on Pennsylvania. If we could, with what the nineteen delegates at stake there, what were the specific results.
Yeah, I mean, I think, you know, like all these it is so close that that you almost can't look at any one poll, even ours, as good as ours of course is, and say what it means. But it is showing that Harris has a bit of a lead in Pennsylvania. She's sort of leading by about you know,
one point seven percentage points. But then if you look at the overall sort of five thirty eight polling average, which is sort of the you know, looking at the broadest collection of polls across you know, from from across all these different polling organizations, you know, Trump's the one
who has a very very slight edge there. So you're seeing the tightening across all of this, and at some point, I think, you know, we're we are getting to the place where the polling can only tell us so much because it can't ultimately predict who's going to show up, who's going to vote. But the early voting numbers are showing, you know, even higher numbers than we saw in the
last election cycle. So there's clearly that effort that both parties are spending, the huge amounts of money they're spending to try to you know, get voters out there is having an impact already.
Can we divine from that early voting that turnout is going to be better than ex or higher than expected.
I mean, it's hard to tell because you know, obviously, if you're voting early, it mention not voting on election day, but it has in the past showed that there has been a higher level of you know, in the past early higher early voting has translated into higher overall turnout. There's obviously twenty twenty was a high turnout election. I would I don't know if this one can be bigger
or not. But given the amount of money that's been spent, the huge, huge sums, the huge amount of emotions surrounding the race on both sides, I do think people are expecting it to be to be quite a turnout.
Kevin, real quick, how are these polling results likely to shape the campaign in the final days?
Yeah, I mean I think that for Kamala Harris, you can see that she's going to be spending her time really in those blue wall states Michigan and Pennsylvania and Wisconsin. That's where she's really going to be focusing most of her efforts. She knows that that's ultimately the best easiest path she has, and so she's going to be trying to make sure that those voters get to see her and that she gets to make her closing case there.
Trump has really been a little more focused on sort of the bigger, splashier stuff and things that aren't really necessarily even targeted at swing states. You know, he's got his Madison Square Garden appearance coming up in New York City. You know, I think that's that sort of shows he's he's always been on a somewhat different track. The dynamics for him have always sort of worked out different than
just about any other candidate. But you know, I think ultimately both of them need to are going about their own way and trying to figure out how do you motivate, how do you excite, how do you and finally convince what have to be like the four remaining undecided voters in the entire country of the United States.
Birks Kevin Whitelaw, Kevin, thanks very much for being with us this morning, Karen, all.
Right, John, Well, we are watching too this morning. Of course, those shares are of eleven percent in early trading. Assesster It delivered some of blowout results and that's helping futures this morning as well. S and P futures up half percent or twenty six points down. Futures are a little changed. NASDAK futures up a tensive percent or one hundred and fifty eight points. A ten year treasury up twelve thirty seconds.
You have four point one nine percent held on the two year, four point oh four percent nine Excreued oil is up one point nine percent of a dollar thirty two at seventy two dollars nine cents of barrel Well Comics gold is up a tensive percent of twenty one dollars thirty cents at twenty seven fifty seventy one ounce. And that's a Bloomberg Business Flash, John.
Bloomberg's Karen Moscow. Karen, thanks very much. Another major story we're following this morning, the blowout quarter from Tesla. Those shares up eleven percent pre market. It's giving a boost to the tech sector overall. And let's get more analos this this morning. Bring in our next guest, Dan Ives, the senior tech analyst at web Bush Securities. Dan thanks very much for being with us this morning. Give us the highlights as far as you can see them of the quarter and the look ahead.
Yeah, and this is a blowout quarter for Tesla, specifically margins. They've had all these price cuts the last year that stopped, so now Margins two hundred basis points above the street. But the big thing they gave huge guidance for next year twenty and thirty percent delivery growth. This was an Aaron Judge like quarter for Tesla.
Uh, who is buying the cyber truck, Dan, I can't tell how many they sold from this report.
Look, in terms of the cyber truck, I mean that continues to be you know, I think, a strong product, but small today. I mean, if you look at it, it's a high end buyer. But really for Tesla, it's now expanding the actual roadmap beyond the cyber truck. We believe a sub thirty thousand dollars vehicle comes out next year. That's going to be the key.
What are the prospects for some of the other businesses, specifically energy storage? Can you tell us more about that.
Look, Energy was actually a very strong quarter and it's faction been a very strong year. Tesla now is starting to really become the one stop shop. And when you think about superchargers, you think about what's happening on electric vehicles. Clearly we've had softer electric vehicle growth over the last year, but now you look at the energy business, you look at the storage business, and I ultimately believe the key growth for Tesla over the coming years is autonomous and AI.
But when you look at this quarter, a huge rebound, huge step in the right direction. The bulls will feel good today. I think this is an inflection point quarter for Tesla.
Yeah, you look.
To the ROBOTAXI was that a flop for Tesla? What's happening on that front?
Look, I disagree with someone that was there, and I've been to these events, you know, for tech twenty five years. I thought it was one probably the top three four events I've been to. Did it lack details, yes, But in terms of the future autonomous robotics optimist, Tesla more and more is going to be more of an AI disruptive leader rather than just evs. But again, investors, the knee jerk reaction disappointed. I think in years from now this is going to be a historical event.
We also had promises of more affordable vehicle. Is that happening.
I think about a year from now we have a sub thirty thousand dollars vehicle and that is going to really be music to the ears of the bulls because they're able to produce cars cheaper than anyone else out there. It costs roughly twenty thousand dollars for them to produce a Tessa. You go back to three years ago, it was thirty five forty thousand. That's the key from Musk and Tesla going forward.
China is, if I'm not mistaken, one of the if not the biggest market for Tesla. What's the competition there and what does the landscape look like for Tesla in China?
Yeah, about forty percent of demand. China had a very strong quarter. Look, it's a game of Thrones battle in China. You got bid, you got neo domestic competition across the board, but you now are starting to Sea has to gain more and more share in China. That's a key market.
It's the hearts and lungs of the story. But we're seeing positives there and that is important for the long term ago to testin, which is why I believe we're looking in a trillion, trillion and a half hour markap over the next year, year and a half.
In the earnest result, there was a spike in the regulatory tax credits. Is that a reliable recurring source of revenue for Tesla?
Look it and it's a source of controversy. You know, over the years, it's essentially almost a subscription model for them. I mean it's going to EBB and flow. I don't think investors give it that much credit, but it's not going away. And I think it just shows you talk about the ergy of business, about regulatory it's all parts of really what's becoming just a multifaceted Tesla under Musk.
What did you take away from elon Musk and the conference call, specifically as it relates to a possibility taking a role in a Trump administration.
Yeah, I mean, look, in terms of the business it was probably the most bullish earnings call we've had some Tesla in the last few years in terms of what it's get the popcorn now, right, because the next few weeks, I mean, if Trump does win, Musk will have a major role in that administration, adding to you know, everything else he does in SpaceX, Tesla and others, and look gets a double edged sword, right in terms of him getting into politics. I think now that needs to see
how this all plays out. Given it to Musk, you never know it's coming in next twenty four hours and Dan, in.
The minute we have left, we're getting most of the magnificit and seven reporting earnings next week. Give us your outluck if he would.
I mean, I think get the popcorn out. I mean it is going to be a robust earning season for tech. I think from because you have an AI revolution being led by godfather of AI, Jensen a video. It's something we haven't seen in forty years, and now the next stage takes over. That's where I think you extrain from Microsoft. I believe from Apple. Despite all the noise, it is the beginning of now AI coming to consumers at iPhone sixteen. This is going to fuel tech higher. It's why we believe.
It's nine pm in this AI party that goes to four am.
I'm surprised you didn't do a baseball metaphor Dan anyway.
Ant look in Aaron, Judge, La Quarter and again yangs and five.
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