when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. matt: welcome to "bloomberg markets." let's get a check of where the markets stand at this hour. to kick off the program, the s&p 500 down now more than 1% so a drop of 50 points to 41.97. as a 10 year yield rises. up 10 basis points right now before 49 229. still not back again to 5% but we are headed higher and that is a headwind for stocks. another headwind for stocks is a

stronger u.s. dollar. you can see that here at the bloomberg u.s. dollar index up over 12.75 and dime excreted gaining $.65 per barrel, currently at $84.40. all three of these things here are bad for this thing here and that is why you see stocks dropping. abigail doolittle is here with a look at the earnings so far and we have had and still have a ton of earnings to come. abigail, 40% of the s&p 500 reporting this week. >> $15.8 trillion of market cap recorded. you did a great breakdown of the macro pressures for the s&p 500, nasdaq 100. here are the micro pressures and we have a tale of two stories in the cloud. microsoft of 2.7 -- up to .7% on strong cloud corner, revenue over of 13%, better-than-expected. back in the team growth area. their cloud is much better, up 29% and above the three preceding quarters, even though

it did not top year-over-year growth estimate. take a look at google or alphabet, down 8.9%, between its worst day from last year and march of 2020. that is the degree of selling pressure and what it makes so interesting, revenues were strong but the cloud of 22% and $8.4 billion, 206 he $6 million, it was not enough, was not the growth folks wanted. you can see the pressure is putting on the tech space. meta-reports today after the bell. all eyes on avid 2 -- revenue and advertising growth. fears around the cloud and you can see cloud flayer down 4% and apple next week is selling off in sympathy. as for the meta-report after the bell, this is going to be the key, revenue growth. we are looking at 11% revenue growth for the last quarter part up that was pretty good because it had been expected to be single digit. we're looking at 21% on most for this current quarter. can they put it in there? will the ads hang in there?

if so it will be the best cord for revenue growth back to 2021. all of this weakness we are seeing for big tech because there has been this question whether it will be the fed or earnings most import and s&p 500. i suspect the fed will be important but we are getting an answer that big tech earnings are as well. that s&p 500 below that to hyundai moving average, if below let's call it 41.89, 49.86. we can see really selling -- real selling with support out of the way. it is not clear that is going that in but this is a precarious situation is big tech earnings are in. matt: great chart because i think it highlights that we are now seeing the kind of pressure on the index we have not seen since the svb and other regional bank failures in march so that puts it into great context. thanks very much for that. markets of course are focused on very much focus on yields now as they were in march. michael mckenzie joins us here he wrote today about the supply,

the growing supply and the effect of quantitative tightening. he joins us on set. great to have you on the program because this has been really i think one of the biggest points of focus for these markets, the fact we need to find massive deficits and you don't have the fed to up bonds to help. so who is going to buy them? >> a comes back to the mystic u.s. investors because the foreign buyers have not been showing up this year and u.s. banks can find more because they are deeply underwater, particularly regional banks. it comes back to mutual funds, retail, hedge funds, and they are underwater. if you think back to march this year when the market was convinced we would go to recession because regional banks have failed, the tenure bottoming out at 325. today it is closer back to 5%. we did pick above 5% early this week. first time since 2007. i think the direction of travel is yield will go higher because, as you say, treasury will be selling more bonds and month as

part of the november refunding and more supply means you're going to have higher yields in order to to down that supply. matt: is this the doom loop? 4% on the 10 year, people are like ensco much higher than that. then 4.5% it is like a deaf and can't go higher than that and we are backing up the truck to buy these. those people got burned when we got to 5%. no one is saying it can't go higher than that anymore. >> know they are not. really the economy is resilient and -- work -- the economy's resiliency was shocked. they were convinced we would have recession. recession calls get pushed further into next year. i think for the bond market now it is becoming difficult to kind of take down more supply, particularly getting close to the end of the year. there is redemption risks beginning to rise here for these bond funds that are looking at three straight years of really lagging the market and performing badly. if got to wonder how long will investors put up with abject

returns. matt: you've got refinancing risk on the shorter and, a lot of people, my buddy paul sweeney, is like i will load up in two years but if they drop in value, the rise in yield did not get you anything when you're trying to move into a new set. >> sure. i think the two-year is a pretty interesting area of the curve, the bond investors like the two-year because they think the fed is done, they think the fact deals have been rising in recent weeks is going to complete the fed's job of slowing the economy and getting inflation back towards target. but i think in terms of the supply story, it is about tens, 20's, and 30's, and that is what has the market worried. there is less incentives to stretch out the curve. you want to stay around the two-year, maybe the three year, some talk about going out to fives but in general it is still pre-much a market where you bill and she'll where they say. matt: michael mckenzie from bloomberg news talking about bonds let's get the latest

chapter on the house speaker ship battle right now. congressman mike johnson of louisiana says he believes he will be elected and has the votes. there will be a floor vote this hour so we will know. johnson receiving support from former president donald trump who posted online "i'm not going to make an endorsement in this race. my strong suggestion is to go with the leading candidate, mike johnson. which that kind of is an endorsement, right? kailey leinz joins us with the latest from capitol hill. does he have the votes? kailey: we are about to find out, the vote is beginning now but what we do know is republicans here on capitol hill were a lot more confident into this vote then we have seen in the votes prior to this. because this has been a battle over the course of weeks now. at least -- at least a phonic when she rose to give the nominating speech for mike johnson called him a friend to all and enemy to none. that may be ultimately what could get him over the finish line. there are not as many hardline

never johnson's as there were for jordan or scully's or the others that try to get the gavel before him. a number of members on their way into the building did stop to speak with reporters, the congressman ralph norman said it is hard not to like mike johnson and that is why he things he will get this on the first ballot. we will have to wait until everything is tally but it does seem like the congressman from louisiana mont -- might be on the cusp of attaining the speakership. matt: are there going be no holdouts in the republican party because mike johnson was such an election denier? right? he does not believe biden was elected president or at least that is the position he played after the january 6 riots. is anyone going to say i don't want an election denier a speaker the house? or all -- or are they all on board? kailey: a cumbersome and from texas was speaking with reporters ahead of the vote and he does not think anyone will vote against mike johnson.

that is not a guarantee no one will but it does not seem like that is a particular issue in the republican conference. it may be something that helps him get a lot more of those harder line members on the right on side to be there with him and support him. congressman aguilar, who is a democratic leadership, was giving the democrats returned speech nominating their leader hakeem jeffries moments ago and said this is the speaker that would appease donald trump, calling mike johnson one of the architects of the tensed overturn the 2020 election result but that does not seem at least on the republican side like it will be something that could defeat him here. that would not be so much the issue is other issues around funding for example. for me -- it remains to be seen but it may be -- it may make it difficult if he does get the gavel to work with democrats going forward. matt: to wrap that up, i'm clary -- curious what you learned in your reporting. you spent so much time on capitol hill. you republican still believed 2020 election was rigged or was

that just a political position they took at the time? kailey: it depends on who you ask is the short answer to the question. there are a lot who have remained supportive of former president donald trump, not necessarily taking conviction on whether or not the election was stolen. that is something that was an issue earlier on when it was steve scalise versus jim jordan. of course that is long behind us now. it just speaks to the idea donald trump does remain a large figure looming over the republican party. what he says does indeed matter a lot of the time. he probably played a contributing role in the sinking of tom emmer's bed yesterday. he was the speaker nominee for just about four hours. former president trump posting on truth social it will be a mistake to elect tom emmer and shortly after he was out of the race. as you mentioned, donald trump has expressed support here for mike johnson so we will see how much this helps him as the rollcall vote goes on. matt: kailey leinz there on capitol hill. she will bring us the results as they come in, the vote of course

is ongoing as we speak. coming up, insight on today's market action from bob sloan, s3 partners, managing partner and founder. he is the one who gives us all of the short data we rely on to help take the temperature of this market up next. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh

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matt: this is "bloomberg markets." i'm matt miller. big tech leading big losses in the u.s. equity markets after alphabets disappointing results. s&p 500 now at the lowest level since may as abigail doolittle was showing us, we are below the 200 a moving average and have been there since march. let's get more on the markets with bob sloan, the founder and managing partner of s3 partners who gave us a lot of crucial data that we need in order to measure how long or short people are on a lot of these stocks. bob, i want to start on housing because we got interesting data this morning on new-home sales, up 12.3%. we were only looking for a gain of 0.7% which seems good but then you realize it is only

because no one is selling pre-existing homes. they have nowhere else to look. what do you think about homebuilders? what are you seeing in their positioning? >> they are coupled between an aggressive fed and defensive consumer and this is the supply and demand situation. the short-sellers have stuck in and they think this is the most obvious short since may be the mortgage crisis. there really stuck into homebuilders have the subsidies towel last the fed and it is a supply demand situation. supply is tight for homes. so demand could be softer. matt: i was speaking earlier today with someone who runs a land investment company and she was saying homebuilders are giving discounts on mortgages to the end buyer. and we are giving discounts on financing to them to buy the land and i said at some point, the buck has to stop.

at some point that house of cards will collapse and i guess the short-sellers are betting on that. >> and they are very stuck in. rising embedded they see this as i cannot last. the subsidies cannot last and this is easy money. matt: rising rates should be a problem for the big tech companies that have run so far so fast as well, right? that is at least how we learned about it in school. however, they continue to do well, these magnificent seven. are the shorts out? >> no, they are in. because love is the absolute emblem for modern price action. so the total shorts is $17 billion, still talking about this three years later, you and i have been talking about this for a long time. it is incredible that the fundamentals of the stock say this is a car manufacturer. the buyers say this is a tech

company. car manufacturers are valued lower, tech companies hire with interest rates going higher, the multiples have to come in. the stock was up 70%. short-sellers are down $16 million. they made money back as the company missed earnings but the important thing is that 100 years from now, we will be talking about short-sellers versus tesla. it is the raw -- rawest form of capitalist competition maybe ever. in today's market, you have to understand what the market is saying to you. it is not enough to be right, the market has to agree with you and that is why sure interest is so important. frames the binary outcomes of long and short and you have to marry the fundamental with the technical to get the position sizing right. tesla is a classic example of that. matt: today it is only down .4%. but i think it is interesting to

look at the nasdaq 100 which is down almost 2% right now. this is a very downmarket, looking at the s&p off more than 1%. in terms of the groups moving today, i always look to the energy stocks to see what they are doing considering the fact oil price has been so volatile. there's not a lot of change today but what does the sure interest look like? >> the energy sector was the only sector that actually lost money when people bet against it the last quarter. everything else made money. the u.s. supply is pretty rich. there is a lot of oil around. the bet is that that does not last. supply tightens up, increase in price. what do i know? i think shorting energy with the geopolitical risk with interest rates the way they are, but people do it. there is a school out there that says this is overblown, this will all come down, supply is

greater than demand, and we are going to see lower prices. matt: i want to quickly ask you about a new sec rule on shorting. you were famously -- you have the firm and do wrote the book. the sec is putting more transparency into the lending market. what do you think? >> for the first time ever, the power plant on wall street will be able to be used by retail investors and professionals alike. this is a huge seat change of a rule, the most important rule change made in the last 100 years. a business that delivers credit, exposure, access, leverage, is not plummeting, its power. it reveals the power plant of wall street for the first time ever. it is really important. matt: something to focus on for

sure. bob, great to get your context, your insight. thanks for joining us, s3 managing partner and founder, bob sloan. we are watching the vote in the house for a speaker. this triad looks like we've got -- the vote continues to go on and we are looking to see how many votes from the republican side or -- are for someone other than johnson. right now, johnson has 70 votes from the republicans and no other votes. he says he has the votes to win this race so we could see a new speaker of the house from the republican party today october 25. this is bloomberg. ♪

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matt: this is "bloomberg markets." i am matt miller. time for the wall street beat,

the once respected crypto mobile sam bankm bankman-fried, hard ty that with a straight face, is going to take the stand to defend his actions in the lead up to the collapse of his digital asset empire. should nelly bassett has the latest and i think you for reminding me that in america you are innocent until proven guilty. sonali: that's true and i will speak with a straight face. this is a serious matter. but for him it is whether he will spend life in prison or not. of course we have seen sam bankman-fried really defend himself prior to the indictments . typically lawyers do not have their clients take the stand in an instance like this. matt: it's dangerous. sonali: it is dangerous. what we know about his defense? what they are trying to defend themselves by saying alameda was taken margin loans through ftx and this was a matter of poor risk management rather than intentional coordinated fraud. his friends have already taken the stand, many pled guilty

already and are facing short sentences. the question is can he avoid jail or convince a jury he did not intentionally or in a coordinated matter commit such crimes? matt: so his -- taking the stand is essentially a hail mary because it does not look like it is going so great for him right now. all of his alleged co-conspirators said i committed a crime and that meant directed me to do it and that is no good for him. he is going to say what, that this was a big mistake, that i'm a bad manager but not a bad person? i'm not a criminal i'm not a thief? sonali: going back to the opening argument from the defense and you heard them clearly say he had some worries about what would happen when the crypto market were to go into a downturn and he advised caroline ellis in the ceo of alameda to put on hedges to protect their positions and they had said she had not done so. remember when we heard from his

friends including caroline ellison as well as others who have known him from college or high school, all of them said sam bankman-fried directed them to do certain activities. one thing he could do is come up and say i directed you to do x, y, and z as well and that did not happen too. so there are a lot of interesting twists and turns to this story. one thing that would be hard for him to explain here is the fact he has had his colleagues or former colleagues testify that they created backdoors for alameda to essentially borrow from ftx in an unlimited fashion. matt: borrow is a very diplomatic way of putting it. sonali: take, borrow, loan. you know. that is one of the things that had been clearly delineated in this testimonies of some of his former colleagues at how he would defend himself to that degree is of great interest because that is a key part of the prosecution as well. matt: by the way, there is no way for us to see this, right? there is no cameras allowed, the

whole time i think you have been in there, they take your phone away from you, you've got these court sketches so we don't know other than reporters who are inside. sonali: right. you go to the new york courthouse, give them your phone and laptop, you come in and walk out with your notebook of notes. to be honest it has been a highly attended testimony said here that you have not even been able to be in a courtroom itself so i'm sitting with many other reporters in an overflow room watching him from a screen. so getting close to the matter is quite difficult. matt: thanks very much, our star wall street reporter. tonight, you can tune into bloomberg originals first feature-length documentary, ruined, the fall of crypto exchange ftx and sam bankman-fried will air at six or copy and in new york on bloomberg tv, it :00 p.m. on bloomberg originals. catch that online. i want to point out forward shares have turned sharply

higher on a positive report from the associated press. that we could see the uaw strike wrap up. we will bring you details we get on this on the other side of this break. this is bloomberg. ♪

warnings ♪ >> this is bloomberg markets i'm jon erlichman. matt: i'm matt miller. the market at session lows the s&p 500 off 4191. abigail doolittle pointing out earlier we are below the 200 day moving average. in those terms at levels we have not seen since march when svb and other regional banks collapsed. 10 year yield rising a headwind

for equities know of 13 basis points to 4.95 seven, getting closer to the 5% level we went through monday. the bloomberg u.s. dollar index also a headwind rising now. 1276 is the level there. of another headwind from oil. crude rises dollar $.10 per barrel to 8484. those things are bad for stocks. as a result stocks continue to fall. jon: one of the other headwind has been the technology selloff. you have a tale of two tech earnings. the market continues to digest. all such a long we have seen weakness for google's parent company alphabet as the cloud component of the business seemed to be the worrisome part of the results last night. those shares are off 9%. at the other end of the nasdaq 100 performance, on a day seeing a lot of decliners, microsoft holding gains of about 2.5% now.

investors felt pretty pleased with what the company had to report. we will talk more later about the story of technology stocks. there is more to come today earnings wise. in canada we are getting a fresh taste of central bankers navigating interest-rate realities. the bank of canada had an interest rate decision today deciding to keep his interest-rate -- overnight lending rate unchanged at 5%, not a surprise. they didn't leave the door open to more hikes -- did leave the door open to more hikes down the road because of inflationary concerns. they raised inflation expectations for next year. let's get more perspective from what the bank of canada governor had to say at a news conference earlier today. >> we held the policy rate steady today because monetary policy is working to cool the economy and relieve price pressures. we wanted to give it time to do its job.

we revised up our outlook for inflation. higher energy prices, structural pressures in the housing market, and stickiness in underlying inflation are all slowing the return to target. jon: i want to bring in claire from rbc who has been tracking the bank of canada story. good to see you. is it a surprise to you at this point when a lot of economists seem to think the bank of canada was at the end to commit to the idea of more rate hikes ahead? claire: as you mentioned, the decision itself today really did not come as a surprise to us as well as what was priced in to the market. the bank decided to hold its interest rate at 5% but decided to balance the decision with a hawkish sounding statement today. some of the things mentioned include actually increased

inflationary risks in the economy. that is, again, kind of, given what we have seen over the last year, pretty sticky inflation pressures in canada, though, that was kind of broken by a good upside surprise in the september cpi print. overall i think it was a really balanced decision-making between the bank of canada's -- canada opting to hold the overnight rate at 5% and the hawkish statement leaving the door open obviously for more rate hikes if they were needed. jon: as we await the next federal reserve interest rate decision i have heard people talking about the psychology of more hands, whether it is the bank of canada, another central bank, the idea about a change in policy and the concern they would have that that would fuel inflationary pressures that they are trying to fight against now. did you feel that in the bank of canada's -- decision and

announcement today? wax sort of. -- >> sort of. obviously a lot of core inflationary pressures were measured. they mentioned today they were kind of designed to get a gauge at broader underlying inflation for some goods and services that were very much domestically produced and it domestically consumed. a lot of the concerns that were also raised were tied to geopolitical tension more recently that has been driving up global commodity prices especially energy commodity prices again. those things, again, are outside of what was within the realm of control when it comes to the bank of canada as well as the federal reserve. the bank of canada noted higher shelter inflation as one of the key fallouts for higher interest rates these days. what they are billing concerned about and what they highlighted as one key uncertainty behind rising inflationary risks is the

lack of downward momentum in core measures ultimately trying to get a gauge at where domestic inflation pressures are currently at. jon: -- matt: i look at the lack of affordability in the housing market in the u.s. and i say nobody can beat us on that measure. of course, canada does. i can't remember where i saw chart showing volatility in sovereign debt divided by countries. i thought we must have the most volatile sovereign debt market in the developed world. i saw canada as we more volatile than we are. what's going on up there? claire: i think, well, obviously, the sort of fiscal trajectory is, again, also something outside of the bank of canada's control. today it was highlighted that government spending has not been a key contributing factor adding to inflation pressure in the past year. sort of, shifting the focus a

bit more back towards the growth trajectory. something i would like to highlight especially when it comes to giving context as to just how much the downward adjustment to gdp growth, how much really that means is the output gap measure that we are all familiar with. as of the third quarter according to the monetary policy report, that has been all but eliminated. we are very close to being eliminated. that is suggesting excess demand currently in the canadian economy very close to being depleted. with growth forecast adjusted down for the second half of this year, lower than potential gdp, that means we might seem excess supply and a negative output gap. that will continue to put a lot of pressure on inflation over the second half of this year. jon: thank you for joining us rbc economist claire fan talking to a the bank of canada and that

is central bank and our central bank in the u.s. dealing with treasury volatility and inflation as well. we still have the house voting on a house speaker, mike johnson right now has 166 votes from republicans. and, no other votes. that it's the key category to be watching. if you are thinking about a c-span stream. you would see all the votes from republicans for johnson. all the votes from republicans for other. all the votes for the democrats from jeffries. the other column is important to watch because if the republicans have five others or more than -- then johnson does not get it. he's that she will see if that is true. we will see the possibility of an approaching deal between uaw,

general motors, ford, stellantis. shares sharply higher. ford shares down .2%. general motors down .4%. stellantis shares gaining. they had been rising much more than this. we will come back and talk with keith naughton out of motor city on where the stark stance. this is bloomberg. -- where the strike stands. this is bloomberg. retailers are moving inventory quickly and securely. that's because cdw designed and built a solution with cisco security. end to end protection, defends against attacks and makes better decisions in real time. so warehouse and customer data stay protected every step of the way. make amazing happen. cisco and cdw.

jon: it's time for our stock of the hour segment. we are monitoring auto stocks. matt referenced before the break with fact we saw ford shares spike on a report from the associated press saying the uaw

appears to be moving closer to a tentative contract agreement with ford. that deal could potentially include cost-of-living pay increases that could potentially, matt, lift the total pay raises above 30%. that report also says the union made a counter offer to ford. it proposes a 25% general wage increase over the life of the new four year contract. we will continue to monitor the headlines. everybody has been waiting to see traction on the conversations between the automakers and the union. matt: they have gotten pretty far in terms of pay, that part of the package it seems. everybody is up around 20%-23 percent. reportedly the union wants something like 25%. it seems like they are close enough to done. my questions remain on the possibility of bringing back pensions. that seems terribly unlikely. the possibility of a four day

work week, one of shawn fain's demands. why not a four hour work week, right? he's not in from detroit joins us on the phone. he covers ford and all carmakers. does this look like it is about to get done? keith: that's unclear. the ap has reported it's getting closer. but our leaders have known since last friday the union was asking for a 25% pay increase versus the 23% ford, gm, and stellantis have already offered. we know they are restoring the cost of was -- that they stopped giving during the great recession about 14 years ago. so, those two things combined do get you over the 30%. which, as we previously reported is the magic number for the union. in that regard, if they can get ford to move up to 25%, that

would get them over the 30% that had been their target. we could be close to a deal. it is unclear if ford is going up to 25%. that is just what the union is asking. ford was at its limit when it offered the 23% wage increase. jon: you have been reporting on additional uaw strike action that has obviously included focus on more profitable facilities for some automakers. what do we know at least about how those actions may be helping bring progress to the overall conversation, if at all? keith: yeah. the uaw president shawn fain is really turning the screws of the company by taking out their most profitable plants this week. we saw the gm arlington texas plant go down, a big suv plant that is a money machine.

and the stellantis ram pickup plant also going down. these are the most profitable plants for those companies. ford's most profitable plant, its kentucky truck plant went down on october 11. they have had the most sustained pain in losing big money makers, the largest f-series pickup trucks, and the biggest suv they make. those things are increasing pain on the companies and presumably increasing their motivation to settle. matt: what will we see in terms of damage done to automakers? when we look back next year at the revenue line for example of gm, ford, stellantis. will they take a big hit because of the strike? keith: the immediate damage is estimated to be over $2 billion in lost earnings between the three of them. at ford it is estimated to be between $888 million coming into this week. that is the immediate damage.

the longer-term question is, what does it due to their competitiveness? does it drive their labor costs so high they cannot compete with tesla? matt: it will be interesting for sure. keith, thank you for joining us. bloomberg's keys not on talking about the latest from the uaw strike. more ahead. this is bloomberg. ♪ explore endless design possibilities. to find your personal ♪ style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free

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matt: the united states of america has a new speaker of the house. mike johnson has enough votes to win the house speaker ship. i would say he has won house speaker. the tally is ongoing. but, there is nothing i can think of that would change this now unless they for some reason stop the vote. so, yeah. after trying again and again and again and again the republicans have elected a speaker.

in mike johnson. it is very interesting. not unlike some of the other candidacy -- candidates he has indicated on many different occasions he does not believe in the results of the 2020 election. he thinks of the vote was rigged. he thinks the vote was stolen. he does not believe president biden wonder pop -- one it fair and square and he is now in one of the most powerful positions in government. jon: he opposed certifying the 2020 election. we have been watching this chaotic drawn out voting process. it is playing out with a lot happening in the world now. effectively the house closed for business. increasingly we were wondering if we would get to some kind of endgame in evening -- any reasonable amount of time given the processes we have already gone throughout this point.

matt: let's go to kailey leinz standing by on capitol hill. i think a lot of people today will be googling who is mike johnson? many had never heard of him before this unless they were a fan of the amicus brief he filed in texas contesting the election results. what can you tell us about our new speaker? kailey: well, the congressman from louisiana is not super long tenured in the house of representatives, maybe why a lot of people may not know who he is. he was elected in 2016. he has not to this point out any prominent leader positions other than being chair of the republican study committee, very conservative caucus. this will be his first go at a leadership position area and in doing so as a speaker of the house. he will come to more prominence now. as you have already been discussing this is somebody that was closely aligned with former president trump, one of the leaders of the effort in the

house to not certify the results of the 2020 election and he's very much a conservative. he is very pro-life. he was very opposed to gay marriage. you had one congresswoman that was married to a woman giving her wife and anniversary shout out for voting for hakeem jeffries under the rollcall call vote moments ago. but this is a conservative that applies to -- appeals to hard-line members of the republican congress because he is not so well-known he has not collected a lot of animosity. he has not made many enemies internally. ultimately that seems like why he was able to get over the finish line today when several others before him could not. matt: i guess timing is important too as the clock continues here without a house speaker up until now. some are talking about republicans essentially wasting their majority status. how much was that part of the story building as we waited to see who would ultimately fill these issues? kailey: absolutely.

this was day 22 without a speaker of the house. everybody knows we are working against a clock here because funding for the u.s. government runs out november 17 that as well as funding for israel, the supplemental request to eight israel, taiwan, and border security measures is something that needs to be addressed and cannot be addressed until there was a speaker of the house. there was a sense of urgency that it was time to get this done. congressman ralph norman of north carolina spoke with reported ahead of the vote saying he mentioned timing and he said mike johnson is the right man at the right time. it was just a feeling on capitol hill that, guys, we have to get this done. matt: it will be interesting to see if johnson is an isolationist like many on the far right of its party. whether or not he opposes more aid to ukraine or in the levels that it has been requested. and whether or not he feels the same way about aid to israel. what do we know about his voting

record? kailey: mike johnson as it speaker designate spoke to reporters and journalists this morning before heading to the boat and suggested he will not be opposed to more aid to ukraine. we will see when he has the gavel in hand what will be done about that. he was also outlining plans for spending, the idea that a continuing resolution will be needed to continue to fund the u.s. government. he suggested there could be a temporary funding measure that would fund the government to january 15 or possibly april 15. he said that is possibly something he would discuss with the conference and sort out. a lot of the policy will be ironed out once the gavel was actually in hand. that's what he needed to achieve first. he has done that today. jon: you mentioned the risk of a shutdown moving into next month as one of the considerations fast approaching. many hardliners have been resisting the leader that voted for the budget deal. that mccarthy struck with

president biden earlier this year. how has the conversation around that started to take shape? what will happen with the possibility of a shutdown moving into november? kailey: this is one of the difficult challenges johnson will have to navigate as speaker. i already mentioned this is not somebody with a great deal of leadership experience. he may be very quickly forced to go into a room with hakeem jeffries, the democratic leader, chuck schumer and mitch mcconnell the leaders in the senate possibly even president biden to try to figure out how to keep the u.s. government funded and what kind of bipartisan deal and walked to be made. working in a bipartisan manner helped doom kevin mccarthy's place. what mike johnson may have working for him is he is much more appealing to a lot of hardline conservatives that kevin mccarthy had a problem with. it will be interesting to see if he can get things over the finish line they would have necessarily agreed to under the prior speakership. if we can actually -- he can actually get that done.

it will be a challenge for him. there is not time to pass all the separate appropriations bills that would be needed to keep the government open by november 17. it's just not that much time. a continuing resolution is likely what it will take. there is pushback in certain client -- time -- parts of the republican congress to that idea. matt: i was asking if they would be able to pass all the appropriations bills. you answered they would not be able to. they will have to kick the can down the road was another continued resolution. very interesting. clearly he appeals to those on the right. it is interesting he was able to get the votes of those more traditional conservative republicans closer to the center of what the american people want to have done. kaylee -- kailey leinz their reporting live from capitol hill. romaine bostick is about to kick off the close and joins us now. it looks like we finally have a

speaker of the house. so they will get some things done. not enough time for a real budget of possibly a continuing resolution and more funding for israel and perhaps ukraine as well. romaine: that's right. it's been a wild 3.5 weeks of a vacancy in the speaker's chair. now the vacancy is finally filled. four candidates they had to go through the ringer to get this. the ousting of kevin mccarthy, the rise and then pulled out of steve scalise even before a floor vote. then of course jim jordan decided he would take a different approach to trying to rally votes, largely by, i guess, taking a more aggressive stance towards some detractors that then lead us to immerse that did not make it. as you see on the screen we are getting confirmation that mike johnson does have the votes now to be the next u.s. as speaker of the house with about 3.5 weeks or so until we have to have a budget solution in place.

romaine bostick here alongside katie greifeld kicking you off to the close. kicking you off today in a much different way than we normally do. we normally come in talking about markets. of course, the markets really focused now on the leadership of the house of representatives and when they will start and get back to work area katie: drama in the markets and drama in d.c. and the house. it's been amazing to watch the process pickup speed. yesterday at this time we were talking about tom emmer's. now it looks like mike johnson is a demand may be able to get enough votes here. romaine: joining us now from sida partners to talk about this is henrietta. this went on longer than most people wanted. frankly it looked like the last time we spoke to you last week that this would drag on for longer than it had been so far here. are you relieved and encouraged

about who they have voted for? henrietta: i think we have a reasonable path forward but i am a little bit upset that it did not take longer to be honest. what happened here is we saw heads roll but none of the mass changed. we need the speaker now that we finally have one to push through a bill that can get democratic votes. it's not like this. the math problems republicans in the far right of the house conference faced. they don't have a majority. here we need political will to get this over the line and hopefully the new speaker is able to do that. romaine: that's what i'm curious about here. this vote i feel will be the easy part of johnson's job going forward, particularly for a man that does not have a huge legislative track record. a man opposed to the certification of the election. and a man who, at least on the surface, does not appear that he will be willing to make the deals on compromises that ultimately led to kevin mccarthy's ousting.

henrietta: it does not matter if he wants to make the deals are not. that's not his choice. he just has to put on the happy warrior face and marches through and the alternative is government shutdown. what democrats and republicans are looking at today is a 2020 election denier and an abortion activist just elected speaker. that's very helpful for the far right and for the republican conference. they finally cleared the gap able to get a speaker nominated but that's also fodder for the left. now they can campaign against a squarely maga republican party. that sort of what they wanted. now you see a field day for both sides. but the only path forward is through a spending bill that does not cut materially from defense, entitlements, or spending and provides aid to ukraine and israel. this speaker will face the very unwelcome prospect of having to march that through. katie: you touch on a point i have thought about over the past few weeks. disarray in the house