Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with an update on the fighting in the Middle East. Israel has carried out its first airstrike on Central Bay Route in the nearly year long conflict, coming days after Israel's military killed the longtime leader of Hezbola, Hassan Nasrala. David Wood is a senior Lebanon analyst at the International Crisis Group.
There's been an increasing sense in Lebanon that this is becoming not just a war between Israel and Hezbalalah, but a war between Israel and Lebanon. And there was an attack at a place called a Cola intersection, which is not in the southern suburbs of Bedutz, which are considered largely a stronghold, shall we say, Hesbala and its supporters, so quite seriously, Lebanese from all different communities and political
persuasions used this intersection free in normal times. So it's really another really scary escalation in the conflict and makes people feel that there's increasingly nowhere left that's safe in Lebanon.
During this war.
That was David Wood's senior Lebanon analyst at the International Crisis Group. In just over a week, intensified Israeli strikes in Lebanon have killed seven high ranking commanders and officials from Hesbalat well Nathan.
On the campaign trail, both Kamala Harris and Donald Trump have been putting a focus on immigration. The Vice president held a rally in Las Vegas last night.
Earlier this year, we had a chance to pass the toughest bipartisan border security bill in decades, and Donald Trump takes the bill because he thought that that bill it passed would hurt him and he'd prefer to run on a problem instead of fixing a problem.
Kamala Harris also told the Vegas crowd she's all in for another debate with Donald Trump, and now the former president says the border is a problem because of Harris.
What she's done is a total disqualifier.
She should be disqualified.
She should resign the vice presidency and go home to California.
She is by you know, she's really destroyed it.
At a rally in Pennsylvania, Donald Trump also slammed the Vice president for holding fundraisers in California. Over the weekend, Harris raised about fifty five million dollars at events in Los Angeles and San Francisco. Trump attended his own Silicon Valley fundraiser earlier this month and Karen.
The vice presidential candidates get the spotlight tomorrow night, when Republican JD. Vance and Democrat Tim Walls meet for their debate hosted by CBS News in New York. Republican Congressman Tom Emmer of Minnesota has been helping Vance prepare to face his home States governor.
I've known Tim oh probably since he was first elected almost twenty years ago, and I worked with him directly for four years. I spent the last month just going back all of his old stuff to get his phrases down, his mannerisms, that sort of thing. My job was to be able to play Tim Walls eight evans knows what he's going to see.
Minnesota Congressman Tom Emmer was a guest on ABC's This Week Heard Sundays on Bloomberg Radio. For full coverage of the CBS News vice presidential debate, catch the simulcast on a special edition of Bloomberg's Balance of Power that starts tomorrow night at eight pm Wall Street Time on Bloomberg Radio and television.
Well Nathan Key, Industry and government officials are urging US DOC workers and their employers to avoid a strike at East and Gulf Coast ports. The US Maritime Alliance, a group representing ocean carriers and poor and terminal operators, and the International Longshoreman's Association have no talks planned before their
contract expires at the end of today. President Joe Biden said he would not intervene in any dock workers' strike, he told reporters, resolving the dispute as a matter for collective bargaining.
Turning the markets this morning, Karen, it is a huge rally to start the week in Asia. Stocks in China surged eight and a half percent. Three of China's largest cities relaxed rules for home buyers, while the central Bank also moved to lower mortgage rates.
Well Nathan, Today marks the final trading session of the third quarter, with equities surviving was traditionally their toughest stretch of the year. We get details from Bloomberg's Charlie Pellett.
Investors expect the rally to keep running in October despite a contentious presidential election campaign, shifting federal reserve policy, and fears of a pending recession. The S and P five hundred index had its third straight winning week and is up five point one percent in the third quarter, putting it on track for its best start to a year since nineteen ninety seven, according to data compiled by Bloomberg. It has also pushed the benchmark's market cap above fifty
trillion dollars for the first time. And it all happened in September, which historically is the stock market's worst month. In New York.
Charlie Bloomberg Radio, Okay, Charlie, thank you. In Europe, it's a tough day for Stillantis. Those shares are down more than twelve percent. The jeep maker has slashed its profit margin forecast for the year and Stillantis plans to dial back production and spend more on promotional incentives in a slowing and more competitive automotive market.
And Nathan Ashton Martin shares are down more than twenty two percent. The luxury car maker is lowering its guidance for the year at blame supply chain disruption and we demand in China.
Karen, let's turn our attention now to space.
Freedom.
SpaceX on a big group, so I'll capture.
Confirmed Crew nine now board the International Space Station and joining Expedition seventy.
Two, SpaceX launched a two person crew to the International Space Station, the start of a mission to bring home two NASA astronauts have been stuck in orbit after flying to the space station on Boeing Starliner spacecraft. NASA astronaut Nick Hag and Russian cosmonaut Alexander Gorbanoff entered the ISS late yesterday, and Hague thanked the team for getting them to the station safely, coming.
Through the hatch and seeing all the smiles, and as much as I've laughed and cried in the last ten minutes, I know it's going to be an amazing expedition, so I'm really looking forward to get him to work up here.
That was NASA's Nick Haig.
The pair had two empty seats next to them that astronauts Butch Wilmore and Sonny Williams are going to fill when the spacecraft returns to Earth next year. The Crew nine flight was meant to have a four person crow, but NASA removed two crew members to make room for the Starliner duo after technical failures with Boeing's spacecraft.
Good.
It's time now for a look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's Michael Barr Michael good Morning, Good.
Morning, Caaren. North Carolina officials are pledging to get more water and other supplies to storm damaged areas after Hurricane Aleen left a trail of destruction across the US Southeast. Authorities have struggle to get supplies to isolated areas, including the city of Ashville. Massive rains brought by Helene left many people stranded or homeless around the region. The death toll from the storm topped ninety people across several states.
Many local officials, like Buncombe County Manager Avril Pinder, say that they're doing what they can to get help where it's needed in their community.
We need food and we need water.
My staff has been making every request possible to the state for support, and we've been working with every single organization that has reached out.
Millions remain without lights from Florida to Indiana. Duke Energy spokesman Bill Norton says restoring power will be a multi day project.
We're going to have entire substations that were underwater need to be repaired, some cases fully rebuilt.
Mean while forecasters say a new tropical depression in the Eastern Atlantic Ocean could become a hurricane by midweek. New York City Mayor Eric Adams spent the weekend visiting churches as the ongoing criminal case against them canes. Adams received a standing ovation and a bronx church Sunday. However, calls for Adams to resign grow louder. On Friday, he surrendered to authorities and was slapped with a five count indictment. He stands accused of bribery, wire fraud, and accepting the
legal campaign donations. However, Adams told ABC seventh Sunday he is not resigning.
While the attorney's handed the due process, I'm going to handle the management of this city.
The mayor's enter circle is employing his police commissioner, health commissioner, and school's chancellor have all stepped down or will soon. He was a Rhodes scholar who became a superstar. Songwriter, singer, and actor. Chris Christopherson has died. Christofferson has a gritty realism to country music with compositions like Sunday Morning, Come Down and Me and Bobby McGee and this one help me make it through the night.
Taper ribbon from your hair.
As in Actually he was a leading man opposite Barbara streisand and a star is born. A family spokeswoman says Christofferson died at his home in Hawaii at age eight eight. Global News twenty four hours a day and whenever you want it with the Bloomberg News.
Now.
I'm Michael Barr. This is Bloomberg. Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Update, brought to you by Tri State Audie. And for that we bring in John stash Hour.
John, good morning, Good morning, Karen.
Aaron Rodgers, approaching his forty first birthday, worked his way back to the torn Achilles. Yesterday may have been a day where he was thinking the retirement would have been a good option. Had to play in the rain, got sacked five times, hit fourteen times. Rogers couldn't get his jets into the end zonly had thirteen penalties.
They lost to Denver ten to nine.
The game end with a missed fifty yard field goal by Greg Zerwine.
The Jets coach Robert Sala sloppy, a.
Lot of preestut penalties. You know, they're already a good defense, and we made it. We made it easier for him with just a lack of execution. We had opportunities for some goal from the one. We've got to be able to put it in. Didn't. Had the ball twice with a chance to win, didn't.
Jets now two and two.
They played next Sunday in London against Minnesota, who's four and OH, led by the ex Jet Sam Darnold. Vikings had a four touchdown lead at green Bay ended up winning by two points. Buffalo last night was looking to go to four and OH lost in Baltimore thirty five to ten. The Patriots lost thirty to thirteen at San Francisco. The Commanders impressive winning at Arizona forty two to fourteen. The Mets are in Atlanta, but this afternoons regular season
ending doublehead are both teams in the same situation. Win one game today and they're in the playoffs if a team loses, both Arizona gets in. Mets won five nothing in Milwaukee behind David Peterson. The Yankees finished with a six to four win over Pittsburgh. The Yanks of the ALS one seed. They'll start the postseason Saturday in the Bronx against either Baltimore or Kansas City. There hasn't been
a triple crown winner. In the Ash Relations nineteen thirty seven show, Hey Otani came closed, so Toani ended up with fifty four home runs fifty nine stolen bases. In Brooklyn, the Liberty won Game one of their playoff series with Las Vegas. Breonna Stewart scored thirty four points. In Montreal, the US won the President's Cup Golf with a tenth time in a row.
Johns stash Allurer Bloomberg Sports, Karen.
And Nathan.
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. Good morning, I'm Nathan Hager.
Investors are getting ready to close out the third quarter with tensions in the Middle East and along Eastern Gulf Coast ports top of mind. So what should be top of mind for you as we get set for the final quarter of twenty twenty four. Let's bring in Lori Calvcina for a look at this market, Head of US Equity Strategy at RBC Capital Markets with us in our Bloomberg Interactive Brookers Studios this.
Morning, LORI, good morning.
Uh.
We look at futures giving back just a little bit this morning, but despite all the risks, I just pointed out S and P five hundreds poist to end this quarter up five percent, but this headline risk cloud the outlook.
Well, thanks for having me as always, Nathan. Look, I think if you look at you know, indicators like the VIX, like the t DEX, they are starting to creep up a little bit. So we don't think the market is being too complacent about the risks that are growing. But one of the things I find myself saying to investors recently is we can't live in the tails when we're
thinking about our equity market outlook going forward. And I think that's a lesson we've all had to really learn in recent years that the market does look at these things. They do, you know, price them in in their own ways, often with positioning trades underneath the surface. But if you put those sort of tail risks aside, the reasonably you know, sort of thinking about a good economy next year, inflation
continuing to moderate, earning's growth continuing to be strong. That's supportive of all PE multiples, and additional you know, gains in the equity market next year. So I think it's right for markets to be watching these things out of the side of its eyes, but not overly reacting in the moment.
So what should investors be focusing on most as we head into this fourth quarter?
So I think earning season is going to be pivotal, and it's interesting we've already started to get some questions there. I really think that investors are going to be looking for companies to get a sense of where corporate confidence levels are and the feedback loop into the labor market. I think that we're still, unfortunately just debating whether or not the economy is going to sort of tip into something more difficult. There's still a lot of concerns about
the labor market. I think that the FED cuts, it's really important to have those underway. But at the same time, people are continuing to talk about the long and variable lags. So I think that companies are really going to be in focus and what they're saying about their own confidence levels, what they're doing on Capex and what they're doing in regards to the labor market. I think that's going to be crucial in coming weeks.
In terms of what you're hearing from corporate so far. What do they want to see from the FED? Are they looking for low and steady? Are they looking for the FED to deliver something bigger?
I don't know that I'm getting a clear sense of, you know, companies wanting big cuts. I think it was important just to get the cuts started and to understand what the direction of travel is. I think there is a sense that it's going to take some time to really see the cuts work their way into the system. So obviously, you know, I think maybe bigger cuts, you know,
maybe you reduce the amount of time that's needed. But it's funny because I have actually, you know, sort of been poking, you know, with certain individuals and companies on this question. You know, what is really what what are you looking for? Right, whether it's regarding interest rates, whether it's regarding the election. I think it was just the need to get the cuts underway, and I think it's the passage of the election itself that people want to see.
Yeah, I do want to ask you about the election as well. There's so much uncertainty surrounding that such a tight race does it make it difficult not just for you as equity strategist, but for these companies to game out how things could go depending on who wins the race.
Got about a minute last.
Yes and no. Look, I think that companies, you know, there's a sense of they want to know what the lay of the land is and they want to know what they're dealing with. But the reality is that if you look at how equity markets perform under either a Republican sweep or a Democratic president with a split Congress, those are the two best historical scenarios for the stock market in the past. So, you know, I'm not getting
a clear sense of you know, polic aaa policy. B. I do think tax policy is in focus, but I really do again, just think it's wanting to know what we're dealing with.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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