5 Things You Need to Know to Start Your Day

Russia hits Kyiv after a bridge attack, the BOE steps up its bond-market support and investors brace for a brutal earnings season. Russia hi [View in browser]( [Bloomberg]( Russia hits Kyiv after a bridge attack, the BOE steps up its bond-market support and investors brace for a brutal earnings season. Bridge blast [Russia hit Kyiv]( and other Ukrainian cities early Monday, a day after President Vladimir Putin blamed Ukraine for an attack on a bridge connecting Crimea to Russia. Russia fired 75 missiles, more than half of which were intercepted by Ukrainian air defenses, according to Ukraine’s Commander-in-Chief of the Armed Forces Valeriy Zaluzhnyi. “They are trying to destroy us and wipe us off the face of the Earth,” Ukrainian President Volodymyr Zelenskiy said on his Telegram channel, urging people to stay in bomb shelters. BOE support The Bank of England started the week with [stepped-up measures to support the bond market](. It will increase the size of its buying operations for the next five days and launch a longer-term facility designed to ease liquidity pressures faced by liability-driven investment client funds. The BOE's latest effort to bring order to markets following the turmoil caused by the mini-budget was met with little reaction from gilts, which may be welcomed by officials keen to stress that their salvo is designed to bring stability rather than pull down yields. The Treasury also made its own attempt to calm markets, with Chancellor of the Exchequer Kwasi Kwarteng saying he will announce his [medium-term fiscal strategy]( and accompanying economic forecasts on Oct. 31, earlier than initially planned. Brutal earnings Investors expect this earnings season to pummel stocks further and will [watch Apple]( in particular as a bellwether of global economic conditions. More than 60% of the 724 respondents to the latest [MLIV Pulse survey]( say this earnings season will push the S&P 500 Index lower. About half of poll participants expect the S&P 500 to decline even further away from average valuations from the past decade. Downbeat markets European stocks traded off session lows in their fourth day of declines while US equity index futures traded marginally lower. Risk-off sentiment has intensified amid concerns about central bank policy-tightening efforts and their impact on the health of the global economy as the earnings season kicks off. S&P 500 and Nasdaq 100 futures fell about 0.2% each as of 6 a.m. New York time. In Europe, food and beverages, utilities and consumer products underperformed. Cash Treasuries were closed for Columbus Day. UK bonds extends their selloff, led by long-dated bonds. The dollar as some 0.2% firmer, while gold and oil fell. Coming up… The annual meetings of the IMF and World Bank are kicking off in Washington, with the warning of a possible $4 trillion loss in the world’s economic output [ringing in the ears]( of policy markers. Meanwhile the Fed's Charles Evans and Lael Brainard kick off another speaker-heavy week for the US central bank. What we’ve been reading Here’s what caught our eye over the weekend: - [Goldman's Solomon]( is ditching an attempt dominate Main Street. - How [Ukraine's army]( learned to fight back. - Cathie Wood warns of ["serious losses" in car bonds](. - A [27-year-old]( is challenging big banks in a quest to lure the super rich. - [Kanye’s return to Twitter]( lasted all of one day. - [China and Elon Musk]( are on the same page about Taiwan. - [Taylor Swift](: the modern-age Bob Dylan? And finally, here’s what Joe’s interested in this morning I like to follow markets, and what that means is that I like looking at charts to see whether The Line is going up or down. Sometimes there's even some interesting information embedded in The Line. Here's a couple of examples that have been on my mind. On Friday, futures immediately tanked after the Non-Farm Payrolls report showed better-than-expected job gains, and the unemployment rate falling back down to 3.5%. There's definitely something perverse about the stock market falling on more people getting jobs. It rubs people the wrong way. But it's worth noting that it's not necessarily the case that investors are repelled by employment. What can be said though is that the Fed is focused on getting inflation down. And the dominant thinking at the Fed these days is that inflation is too hot because an overly tight job market is fueling rapid wage gains, which then fuel inflation. And so it's really the Federal Reserve that views labor market strength at this point to be unhelpful and not consistent with its objectives. And so when you see stocks tank, that's a function of investors thinking (probably correctly) that more job gains mean higher rates and more tightening, and a sharper effort to fight inflation. In other words, the market reaction is not to the job gains themselves, but to the Fed's expected policy reaction to the job gains. Speaking of lines, and what they mean, I've seen it asserted that UK Prime Minister Liz Truss has "lost the confidence of the markets" owing to the whole fiasco a couple of weeks ago with the mini-budget and the selloff in gilts. But here too you have to be careful. Central banks have tremendous influence over domestic bond markets. So to some extent, central banks determine the level of bond market volatility. Once the BoE intervened in late September, things quieted down quite a bit. Rates have been inching up again in the UK over the last week (as they did around the world) but in a much more orderly manner than they did in the immediate wake of the fiscal policy announcement. The upshot is that you can only go so far in saying things like how a politician has "lost" the market. In many cases, that might just be a reflection of how the central bank is operating at a given moment. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwartÂ]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](