WEBVTT - Bloomberg Daybreak: December 27, 2022 - Hour 2 (Radio) 0:00:03.279 --> 0:00:06.680 Live from the Bloomberg Interactive Berger Studios. Is this Bloomberg 0:00:06.760 --> 0:00:10.479 Daybreak for Tuesday, December twenty seven, twenty two. Coming up, 0:00:10.480 --> 0:00:13.800 the shower stocks in China gain as the country continues 0:00:13.840 --> 0:00:16.720 to roll back COVID measures that's helping to lift US 0:00:16.800 --> 0:00:18.960 futures as we close out the last trading week of 0:00:19.000 --> 0:00:22.360 the year, and President Biden declares an emergency in the 0:00:22.400 --> 0:00:25.160 state of New York because of the winter storm. New 0:00:25.239 --> 0:00:28.600 York GOP Representative Alex Santos admits he lied about its 0:00:28.640 --> 0:00:32.199 job experience. Plus Democrats called Texas Governor Rabbit's actions on 0:00:32.280 --> 0:00:35.760 migrants of dangerous stunt. I'm Michael Barr more ahead, I'm 0:00:35.840 --> 0:00:37.760 John Stashow in Sports Red Hot, and that's been at 0:00:37.840 --> 0:00:39.680 nine wins in a row with a win in Cleveland. 0:00:39.720 --> 0:00:44.680 Mike White is back, is the Jets starting quarterback. That's 0:00:44.720 --> 0:00:48.080 all trended ahead on Bloomberg day Break on Bloomberg. He 0:00:48.159 --> 0:00:51.920 liveing free on New York, Bloomberg one, Washington, d C, 0:00:52.400 --> 0:00:56.680 Bloomberg one, O six one, Boston, Bloomberg nine sixty, San Francisco, 0:00:57.160 --> 0:01:00.200 Sirius x AM one nineteen and around the world on 0:01:00.360 --> 0:01:08.000 Bloomberg Radio dot Com and via the Bloomberg Business app. Hey, 0:01:08.000 --> 0:01:11.000 good morning, I'm John Tucker and I'm Karen Moscow. US 0:01:11.080 --> 0:01:13.640 not Index Future is on the rise this morning, and 0:01:13.760 --> 0:01:16.000 we checked the markets all day long here on Bloomberg. 0:01:16.080 --> 0:01:19.399 Right now, SMP futures are up twenty five points, up 0:01:19.400 --> 0:01:22.160 almost seven tenths of uppercent. Down future is up six 0:01:22.160 --> 0:01:25.080 tents of upper center two hundred fifteen points, and now's 0:01:25.120 --> 0:01:27.560 dead future is up half percent or fifty eight points. 0:01:27.600 --> 0:01:30.880 The decks in Germany up about eight tens of percent. Ten, 0:01:30.920 --> 0:01:34.000 Your treasury down seven thirty seconds. Yell three point seven 0:01:34.080 --> 0:01:37.000 seven percent. They yield on the two year four point 0:01:37.040 --> 0:01:40.080 three three percent. Nine back screw oil is up one 0:01:40.120 --> 0:01:42.399 percent or eighty one cents at eighty dollars thirty seven 0:01:42.400 --> 0:01:45.040 cents of barrel. Comex gold up seven tenths percent or 0:01:45.080 --> 0:01:48.880 twelve dollars thirty cents at eighteen sixteen fifty. Announced the 0:01:48.920 --> 0:01:51.720 euro one point six six five against the dollar, then 0:01:51.800 --> 0:01:54.720 one thirty three point three to John and Karen as 0:01:54.760 --> 0:01:56.920 we wait firstock to again trading here in the US 0:01:57.000 --> 0:02:00.240 on the short and trading week. Equities in Asia are hire. 0:02:00.400 --> 0:02:03.920 China continues to roll back COVID measures and that's boosting 0:02:03.960 --> 0:02:07.040 sentiment in the region. Let's get the recap from Bloomberg 0:02:07.080 --> 0:02:11.240 Daybreak Asia anchor Brian Curtis. In Hong Kong, Asian stocks 0:02:11.240 --> 0:02:14.760 powered higher on the China news of ditching quarantine rules. 0:02:15.000 --> 0:02:18.639 Traveling consumer good stocks jumped. It was a risk on day, 0:02:18.680 --> 0:02:22.000 with US and European equity futures also higher and the 0:02:22.080 --> 0:02:25.480 dollar lower. Investors also embraced the cooling of a key 0:02:25.520 --> 0:02:29.840 inflation measure in the United States. Oil and gold also bounced. 0:02:30.080 --> 0:02:33.079 Indexes of US, Asian and global stocks still remained down 0:02:33.080 --> 0:02:37.040 about this year. It's the worst annual performance since two 0:02:37.040 --> 0:02:40.480 thousand and eight. In Hong Kong, Brian Curtis, Bloomberg Daybreak, 0:02:40.800 --> 0:02:43.800 Brian thanks well on geo political news, US China tensions 0:02:43.800 --> 0:02:47.359 are in focus again. The US is criticizing Beijing's military 0:02:47.480 --> 0:02:51.040 drills near Taiwan. This week. The National Security Council called 0:02:51.080 --> 0:02:54.119 the exercises provocative and said it will continue to help 0:02:54.120 --> 0:02:57.400 Taiwan defend itself. Last week, US lawmakers agreed to a 0:02:57.480 --> 0:03:00.120 spending bill that included two billion dollars in web been 0:03:00.280 --> 0:03:03.280 funding for Taiwan and back here in New York, Karen 0:03:03.400 --> 0:03:07.160 Nasty bout of winter weather has resulted in twenty eight 0:03:07.280 --> 0:03:10.880 deaths and crippled parts of the state, and Unpresident Biden 0:03:10.919 --> 0:03:14.160 has approved a disaster declaration in New York. Let's get 0:03:14.160 --> 0:03:17.399 more of the story from Bloomberg's Michael Barr. The Buffalo 0:03:17.480 --> 0:03:20.320 area got at least four ft of snow and more 0:03:20.440 --> 0:03:23.680 is expected today. New York Governor Kathy Hunkel, we have 0:03:23.800 --> 0:03:27.079 been to a lot of wars together, and this blizzard 0:03:27.160 --> 0:03:29.000 is the one for the ages. Certainly, it is the 0:03:29.040 --> 0:03:32.400 blizzard of the century. Those who died around Buffalo were 0:03:32.400 --> 0:03:36.960 found in cars, homes, and snowbanks. Some died while shoveling snow. 0:03:37.280 --> 0:03:40.480 Buffalo Mayor Byron Brown says they are also dealing with 0:03:40.600 --> 0:03:44.160 power outages and lack of heat. I myself and my 0:03:44.320 --> 0:03:49.040 family were without power. I can tell you at one 0:03:49.120 --> 0:03:52.920 point the temperature in our home got down to about 0:03:53.200 --> 0:03:57.520 forty degrees. It was very uncomfortable. We had to layer up. 0:03:57.960 --> 0:04:00.160 Mayor Brown says some people that have been with out 0:04:00.160 --> 0:04:04.600 powers since Friday in New York. Michael Barr Bloomberg Daybreak, Grey, Michael, 0:04:04.640 --> 0:04:07.160 thank you for the bad weather across the country, also 0:04:07.400 --> 0:04:09.960 hitting air travel hard. Let's get that part of the 0:04:10.040 --> 0:04:13.680 story Live with Bloomberry Steve Rappaport, Steve, good morning, Good morning, 0:04:13.760 --> 0:04:16.800 Karen and John. Airlines are scrambling to catch up after 0:04:16.839 --> 0:04:19.679 a winter storm canceled thousands of flights during the Christmas 0:04:19.760 --> 0:04:22.559 travel rush. The flight tracking website flight of Where shows 0:04:22.560 --> 0:04:25.960 more than twenty eight hundred flights grounded today. Southwest was 0:04:26.000 --> 0:04:30.640 the worst hit, accounting for nearly seventy of cancelations nationwide. Yesterday, 0:04:30.800 --> 0:04:34.080 Southwest Senior director Jim McVeigh, as the storm continued to 0:04:34.120 --> 0:04:38.440 sweep across the country, the cancelations just compiled one after another, 0:04:38.600 --> 0:04:40.520 and as a results, we end up with flight cruise 0:04:40.560 --> 0:04:42.400 and airplanes that are out of place and not in 0:04:42.440 --> 0:04:44.719 the cities that they need to be in to continue 0:04:44.720 --> 0:04:47.200 to run our operations. McVeigh says the airline is doing 0:04:47.240 --> 0:04:50.279 everything it can to write the current challenges. Southwest stock 0:04:50.320 --> 0:04:52.920 is down about three percent in pre market trading live 0:04:52.960 --> 0:04:55.919 in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, 0:04:55.960 --> 0:04:58.360 thanks and turning back to the markets. We're closing out 0:04:58.400 --> 0:05:01.520 the last trading week of a dismal year for equities. 0:05:01.839 --> 0:05:07.640 The SB downboard in harder hit has been the tech 0:05:07.680 --> 0:05:10.640 heavy Danstac, which has lost a third of its value. 0:05:11.080 --> 0:05:14.719 John Golloby is the chief US equity strategist at Credit Sweetz. 0:05:15.240 --> 0:05:17.400 I think that this problem that we've had in tech 0:05:17.800 --> 0:05:20.960 is not a sentiment problem. It's an earnings problem. And 0:05:21.000 --> 0:05:23.400 it doesn't last for three or four quarters. It last 0:05:23.440 --> 0:05:25.840 for six or eight quarters. And a lot of these 0:05:25.880 --> 0:05:28.240 big tech companies that two or three years ago we 0:05:28.279 --> 0:05:31.120 said they have modes, they're impenetrable, and we talked in 0:05:31.160 --> 0:05:34.159 those terms. Um, a lot of those companies are are 0:05:34.160 --> 0:05:39.000 getting closer to total addressable market, whether that's in handsets 0:05:39.080 --> 0:05:42.440 or advertising or other things like that. And it's Jonathan 0:05:42.440 --> 0:05:46.000 gollobit Credit Sweezy thinks the resilient consumer will keep the 0:05:46.120 --> 0:05:49.719 US out of a recession well once a pandemic. Darling 0:05:49.839 --> 0:05:54.000 Peloton disappointed investors last month with the holiday forecast that 0:05:54.120 --> 0:05:56.200 missed estimates. Now it has a new plan to help 0:05:56.240 --> 0:05:57.960 re coop some of those losses. When we get the 0:05:58.000 --> 0:06:02.599 details from Bloomberry's Erica her Schooitz. Peloton released the statement Monday, 0:06:02.640 --> 0:06:05.880 saying it will begin offering refurbished bikes at discounts of 0:06:05.960 --> 0:06:09.000 up to five hundred dollars below new model prices. The 0:06:09.040 --> 0:06:11.920 price tag on a certified refurbished model will range from 0:06:11.960 --> 0:06:17.279 eleven dollars that's three hundred to five hundred dollars below 0:06:17.320 --> 0:06:20.240 current prices. The refurbished bikes come with the same twelve 0:06:20.240 --> 0:06:23.120 month limited warranty as the new ones and include delivery 0:06:23.120 --> 0:06:26.520 and set up. The company's all Access membership is sold separately. 0:06:26.839 --> 0:06:31.559 Shares a peloton or down this year. Erica Schuwitz, Bloomberg Radio, 0:06:31.760 --> 0:06:35.560 Thanks Erica. Shares of the AMC Entertainment continuing their slide 0:06:35.600 --> 0:06:39.960 this morning. They're down another seven percent, enter falling on 0:06:40.040 --> 0:06:43.920 Thursday and Friday. The company is proposing to convert preferred 0:06:43.960 --> 0:06:47.279 equity units into common shares along with a ten to 0:06:47.360 --> 0:06:51.119 one reverse stock split. Again, futures are on the rise 0:06:51.279 --> 0:06:55.440 this morning. Straight ahead, we have your latest local headlines, 0:06:55.600 --> 0:07:03.440 plus a check of sports, and this is Bloomberg. Karen, 0:07:03.480 --> 0:07:06.200 thanks six or seven of Wall Street. Time to bring 0:07:06.200 --> 0:07:08.360 in Michael Barr with Moura what else is going on 0:07:08.480 --> 0:07:12.080 to New York and around the world. Thank you very much, sir. 0:07:12.280 --> 0:07:15.800 Representative Elect George Santos of New York admitted that he 0:07:15.920 --> 0:07:19.680 lied about his job experience and college education during a 0:07:19.760 --> 0:07:22.920 successful campaign for a seat in the US House. In 0:07:23.000 --> 0:07:25.880 an interview with The New York Post in w ABC radio, 0:07:25.960 --> 0:07:30.040 the Long Island Republicans said, my sins here are embellishing 0:07:30.080 --> 0:07:33.120 my resume. I'm sorry. A lot of people over stayed 0:07:33.120 --> 0:07:36.760 in their resumes or um twist a little bit or 0:07:37.160 --> 0:07:40.200 an ingran jate themselves. I'm not saying I'm not guilty 0:07:40.240 --> 0:07:43.440 of that. I'm just saying I've done so much good 0:07:43.440 --> 0:07:47.000 work in my career. The New York Times raised questions 0:07:47.080 --> 0:07:50.080 last week about the life story that Santos had resented 0:07:50.400 --> 0:07:53.600 during his campaign, including that he worked for City Group 0:07:53.840 --> 0:07:57.800 and Goldman Sachs. Neither company could find any records verifying 0:07:57.800 --> 0:08:01.480 that Ian Connecticut at two year veteran of the North 0:08:01.520 --> 0:08:05.080 Haven Fire Department has died from injuries he sustained while 0:08:05.120 --> 0:08:08.600 working ablaze at a four family home. The department identified 0:08:08.640 --> 0:08:12.120 the firefighters forty six year old if Mattheist Wurtz. The 0:08:12.120 --> 0:08:15.280 Connecticut State Police are investigating the cause of the blaze, 0:08:15.480 --> 0:08:19.920 which displaced thirteen residents on Christmas night. The Biden administration 0:08:20.000 --> 0:08:23.680 is accusing Texas Governor Gregg Abbot of endangering lives all 0:08:23.680 --> 0:08:27.400 in the name of politics. Three buses of migrants traveled 0:08:27.400 --> 0:08:30.320 from Texas and were left in the bitter cold outside 0:08:30.560 --> 0:08:34.800 the Vice President's official residents. Ukraine's foreign minister has said 0:08:34.880 --> 0:08:37.560 his nation wants a summit to end the war, but 0:08:37.600 --> 0:08:41.600 he doesn't anticipate Russia taking part. Dmitro Kuleba says that 0:08:41.720 --> 0:08:44.880 his government wants a peace summit within two months at 0:08:44.920 --> 0:08:49.280 the United Nations with Secretary General Antonio Guterres as mediator. 0:08:49.840 --> 0:08:56.959 Every war ends as a result of uh the actions 0:08:57.000 --> 0:09:00.520 taking at the battlefield and at the negotiating tame table. 0:09:00.920 --> 0:09:04.120 But the balance of what will be one on the 0:09:04.160 --> 0:09:07.559 battlefield and what will be one at the table it 0:09:07.720 --> 0:09:11.000 remains to be seen. Foreign Minister Goliba also told the 0:09:11.040 --> 0:09:15.239 Associated Press that Russia must face a war crimes tribunal. 0:09:15.720 --> 0:09:18.520 Global News twenty four hours a day on air and 0:09:18.640 --> 0:09:23.199 on Bloomberg Quicktake, powered by more than journalists and analysts 0:09:23.440 --> 0:09:26.480 in more than a hundred twenty countries. Michael Barr and 0:09:26.520 --> 0:09:29.800 this is Bloomberg, John, Michael, thank you six Tama Will 0:09:29.840 --> 0:09:35.520 Street and signed out for the Bloomberg Sports updates being 0:09:35.520 --> 0:09:39.160 brought to you by your try State Alley Dealer. And 0:09:39.240 --> 0:09:41.800 Good morning, John stash Ower, Good morning, John Tucker. Jets 0:09:41.840 --> 0:09:44.480 have four quarterbacks. They've used all four. They started three. 0:09:44.559 --> 0:09:47.719 Zach Wilson's gone from first string down to third, then 0:09:47.760 --> 0:09:50.440 after second back to first. Now he's back to third stringer. 0:09:50.520 --> 0:09:52.800 Maybe it's fourth, but he'll be inactive with the Jets 0:09:53.200 --> 0:09:56.040 Sunday in Seattle. Mike White has recovered from those injured ribs, 0:09:56.040 --> 0:09:58.160 so he'll start with Joe Flacco the backup, and Jets 0:09:58.160 --> 0:10:01.480 coach Robert Salah was af our things stand with Wilson. 0:10:01.480 --> 0:10:03.160 Still think he's got a future here. I still think 0:10:03.160 --> 0:10:05.680 he's gonna be a really good quarterback. Uh. He just 0:10:06.080 --> 0:10:07.680 he needs time to just kind of sit back and 0:10:07.679 --> 0:10:10.559 continue the development that we're trying to rekick start, if 0:10:10.559 --> 0:10:14.160 you will, after the New England game. But I still 0:10:14.200 --> 0:10:16.240 have him in our future, in our in our plans. 0:10:16.240 --> 0:10:18.680 This runs contrary to report on Fox and the Jets 0:10:18.679 --> 0:10:20.959 and decided to move on from Wilson after this season. 0:10:21.000 --> 0:10:23.720 The Colts, with their third different starting QB and one 0:10:23.760 --> 0:10:26.880 time Super Bowl hero Nick Foles through three interceptions the 0:10:26.960 --> 0:10:29.480 Chargers one three that clinches an a f C wild 0:10:29.480 --> 0:10:31.959 card for the Chargers, so there's one a f C 0:10:32.160 --> 0:10:35.880 spot remaining with Miami, leading the Jets, Patriots, and Steelers 0:10:35.920 --> 0:10:38.840 by one game. Dolphins qb to a ton of belowas 0:10:38.840 --> 0:10:41.559 and concussion protocol as he was earlier this season. The 0:10:41.600 --> 0:10:44.160 Giants were watching that game last night because they host 0:10:44.480 --> 0:10:48.040 Indianapolis on Sunday. At Giants win and they're in the playoffs. 0:10:48.080 --> 0:10:50.760 Denver at four and eleven just lost by thirty seven. 0:10:50.800 --> 0:10:54.199 The Broncos fired coach Nathaniel Hackett. Ninth grade win for 0:10:54.240 --> 0:10:57.079 the Red Hot Nets. Both Kevin Durant and Tyby Irving 0:10:57.120 --> 0:10:59.400 scored thirty two. T J Warrent off the bench for 0:10:59.440 --> 0:11:03.760 twenty three seventeen win in Cleveland and has the Nets 0:11:03.800 --> 0:11:06.440 only two games at the first place in the East. 0:11:06.520 --> 0:11:08.760 Nick looked into three game losing streak tonight there in 0:11:08.880 --> 0:11:12.040 Dallas the Rangers at home for Washington. John Stash with 0:11:12.120 --> 0:11:14.920 Bloomberg Sports. John all right, John, thanks very much, and 0:11:14.960 --> 0:11:17.319 the Bloomberg Sports Report was brought to you by Audie. 0:11:17.480 --> 0:11:20.000 Don't let someone else drive off in the Audi model. 0:11:20.320 --> 0:11:22.560 You've always wanted to visit your local Try and state 0:11:22.559 --> 0:11:25.920 Audi dealer. Get behind the wheel of years today or 0:11:26.080 --> 0:11:30.920 visit Audie Offers dot com for more information and ahead 0:11:30.920 --> 0:11:33.440 of the cash Open on Wall Street this Tuesday morning 0:11:33.520 --> 0:11:37.440 after the holiday. Dal fustres right now two eleven points higher. 0:11:37.440 --> 0:11:40.920 That's up six tenths of eight percent. Smp E Mini 0:11:40.960 --> 0:11:43.480 futures twenty five points higher, that's up seven tenths of 0:11:43.559 --> 0:11:46.640 a percent. And they's a heavy DAS deck futures sixty 0:11:46.679 --> 0:11:49.720 points higher right now. That is up six tenths of 0:11:49.840 --> 0:11:53.320 a percent. The ten year yield was at three seventy seven. 0:11:53.360 --> 0:11:57.000 The two year yield was at four thirty four. You're 0:11:57.080 --> 0:12:04.400 listening to Bloomberg Daybreak live from coast to coast, from 0:12:04.480 --> 0:12:07.640 New York to San Francisco, Boston to Washington, d C. 0:12:08.040 --> 0:12:11.920 Nationwide on Sirius Examp, the Bloomberg Business app, and Bloomberg 0:12:11.960 --> 0:12:16.280 dot Com. This is Bloomberg Daybreak, and good morning. I'm 0:12:16.360 --> 0:12:19.800 John Tucker. Well two. It's been something of a horror 0:12:19.800 --> 0:12:24.120 show for technology stocks. Tech having NASTAC is down thirty 0:12:24.240 --> 0:12:27.160 three percent since the start of the year. And what 0:12:27.480 --> 0:12:30.360 is the path I've had? Who better to ask than 0:12:30.440 --> 0:12:33.960 the Dana Eyes, Managing director at Wedbush Securities. Dan, thanks 0:12:34.040 --> 0:12:36.880 very much for joining us this morning. What is the 0:12:36.920 --> 0:12:41.800 outlook for tech stocks in book? It's obviously been a 0:12:41.840 --> 0:12:45.160 disaster year for attacking two thousand twenty two, and I 0:12:45.200 --> 0:12:49.720 think going two thousand, clearly sentiment continues to be negative, 0:12:49.840 --> 0:12:52.000 but we take a little more contrary of view. I 0:12:52.040 --> 0:12:54.480 think a lot of the bad news they didn't attack. 0:12:55.000 --> 0:12:57.199 I think a lot of these stocks are oversold, and 0:12:57.320 --> 0:13:02.240 ultimately we leave tech stocks will be up about two three. 0:13:02.640 --> 0:13:07.960 Can you characterize the sell off of the space as indiscriminate. Yeah, 0:13:08.000 --> 0:13:10.240 I'd say it's all been painted with the same brush. 0:13:10.360 --> 0:13:14.360 I mean, with the FED continue to go aggressive on hikes, 0:13:14.480 --> 0:13:17.680 you've really seen just a massive risk off across the board. Now, 0:13:17.960 --> 0:13:21.200 a lot of the COVID beneficiaries and some of you 0:13:21.200 --> 0:13:24.079 know that the would I'll say, the names that really 0:13:24.080 --> 0:13:26.760 saw the benefit do a stocks. Some of those are down. 0:13:27.840 --> 0:13:30.200 But when you look at Big Tech, I think the 0:13:30.240 --> 0:13:34.400 difference now is that you're starting refiners see cracks in 0:13:34.440 --> 0:13:36.760 the armor in terms of growth, and I think that's 0:13:36.760 --> 0:13:39.600 why Big Text sold off as well as what you've 0:13:39.600 --> 0:13:41.760 seen in terms of China and some of the supply 0:13:41.840 --> 0:13:45.000 chain issues. Really it was a perfect storm. Protect we 0:13:45.120 --> 0:13:48.280 do not expect the same repeat in two thousand three, 0:13:48.559 --> 0:13:52.920 So it was more of a just a sentiment problem. 0:13:53.000 --> 0:13:56.600 Was it was an earnings problem as well. I think 0:13:56.600 --> 0:14:00.959 about seventy of it, which is multiple compression fed driven 0:14:01.480 --> 0:14:04.600 the ten year and basically no matter what, the risk 0:14:04.640 --> 0:14:08.200 off asset really got thrown out the window. But I 0:14:08.240 --> 0:14:11.040 think over the last few months you've started to see 0:14:11.120 --> 0:14:15.240 going into what looks like a very softer macro, some cracks, 0:14:15.240 --> 0:14:18.600 specifically more in consumer tech. I think social media really 0:14:18.640 --> 0:14:21.440 for intandin you saw that with Meta. You've seen that 0:14:21.520 --> 0:14:25.440 also in digital advertising with delights of Google and others. 0:14:25.800 --> 0:14:29.680 And enterprise is actually held up extremely well. But I 0:14:29.720 --> 0:14:32.600 think investors overall it's a white knuckles going two thousand 0:14:32.680 --> 0:14:35.040 twenty three, and in my view it's as under earned 0:14:35.080 --> 0:14:38.480 as i've seen the tech sector. These two thousand nine 0:14:39.360 --> 0:14:45.240 are the evaluations very attractive. At this point, look, evaluations 0:14:45.280 --> 0:14:48.160 and tech are below their five year mean. So even 0:14:48.200 --> 0:14:51.600 when you take out that sort of COVID eighteen months, 0:14:52.480 --> 0:14:54.600 you know what we could call it a bubble that 0:14:54.760 --> 0:14:58.280 ultimately formed, we're way below that. I mean, we're starting 0:14:58.280 --> 0:15:01.000 a back to seventeen level, the e teen levels in 0:15:01.080 --> 0:15:03.800 terms of from a growth perspective, and I think right 0:15:03.840 --> 0:15:07.520 now investors have started to beakon into a lot of 0:15:07.520 --> 0:15:11.720 these numbers that that's you know, earnings still could come 0:15:11.760 --> 0:15:13.880 down further, but I think a lot of that has 0:15:13.960 --> 0:15:16.280 already factored in. And when I look at big tech, 0:15:16.400 --> 0:15:19.640 the legs of a Microsoft and Amazon and Google, you 0:15:19.640 --> 0:15:23.160 look at shiber security as a subsector, I believe there's 0:15:23.200 --> 0:15:25.960 gonna be pillars of strength in tech. And it goes 0:15:26.000 --> 0:15:28.640 back to you when you come out of the last 0:15:28.680 --> 0:15:31.560 called dot com bubble and burst oh eight or nine, 0:15:31.800 --> 0:15:35.080 the best opportunities, the golden opportunities, were coming out of 0:15:35.080 --> 0:15:37.880 those carnages. And I think that's what we're going into 0:15:37.920 --> 0:15:41.320 in two thousand. Yeah, I mean to preserve the margins 0:15:41.680 --> 0:15:45.000 um tech companies that they could continue to shift focus 0:15:45.120 --> 0:15:48.240 on some of the operational discipline that we've seen, i e. 0:15:48.440 --> 0:15:52.200 Layoffs well tech companies. If you look at the last 0:15:52.240 --> 0:15:53.960 four or five years, a lot of them, I mean 0:15:53.960 --> 0:15:58.640 they were spending money like nineties rock stars, so sometimes 0:15:58.680 --> 0:16:03.040 increasing fifteen workforce per year. And I think during KOVID 0:16:03.080 --> 0:16:06.120 you saw a huge pull forward that said, I mean 0:16:06.160 --> 0:16:08.760 the clock struck midnight. So now you're starting to see 0:16:08.840 --> 0:16:12.360 layoffs across tech. But I also do think that in 0:16:12.400 --> 0:16:15.560 a wild of non strategic areas, and I think strategically 0:16:15.600 --> 0:16:19.880 areas like cloud, digital advertising, others, you're gonna continue see 0:16:19.880 --> 0:16:22.120 growth as well as M and A. But I think 0:16:22.160 --> 0:16:25.720 this is really just after being tefarn like the last decade, 0:16:26.080 --> 0:16:29.120 texts finally started see some softness and that's why you've 0:16:29.120 --> 0:16:32.920 seen the laps. Accordingly, hey, can you call a bottom 0:16:32.960 --> 0:16:35.880 for Let's get some of the individual names. Tesla stock 0:16:35.960 --> 0:16:39.400 this year is a Tesla they've taken on a dive 0:16:39.520 --> 0:16:43.600 this year. Yeah, and a lot of that, I'd say 0:16:43.600 --> 0:16:46.920 the vast majority is must Twitter driven there and because 0:16:46.960 --> 0:16:51.280 of that fiasco train rec situation with Twitter, that's really 0:16:51.280 --> 0:16:54.480 been the major overhanging on Tesla. And we do believe 0:16:54.520 --> 0:16:57.680 Tesla stock is ultimately oversold here. But but a lot 0:16:57.680 --> 0:17:00.440 of this is really how much Candles is going forward? 0:17:00.640 --> 0:17:04.000 Does you get a CEO in the sooner arriving later 0:17:04.280 --> 0:17:07.920 of Twitter and ultimately when it comes to electric vehicles, 0:17:07.960 --> 0:17:11.080 I mean, Tessa continues to really be the market share leader. 0:17:11.480 --> 0:17:14.800 I just think that continues to be a name where 0:17:14.960 --> 0:17:18.479 Must ultimately really determines what's going to happen here. We 0:17:18.520 --> 0:17:21.159 do believe that you know, the bottom is likely and 0:17:21.240 --> 0:17:25.360 intention Dan i'ms the managed director at web Bush Security 0:17:25.440 --> 0:17:28.840 is taking a look at some of the tech names 0:17:29.040 --> 0:17:31.960 this morning. For us in the overall market, Dan's gonna 0:17:32.119 --> 0:17:35.560 rejoin us in just a moment. And as we look 0:17:35.720 --> 0:17:38.679 ahead of the cashow up on Wall Street, the NASA 0:17:38.800 --> 0:17:40.920 even the future is right now sixty two points higher. 0:17:40.960 --> 0:17:45.280 That's up six tenths of eight percent. SMP futures they're 0:17:45.280 --> 0:17:47.879 twenty five points higher, up seven tenths of a percent. 0:17:48.520 --> 0:17:51.000 Right now. The down futures are up two hundred twelve 0:17:51.040 --> 0:17:54.240 points again, up seven tenths of a percent. On this 0:17:54.400 --> 0:18:03.359 Tuesday morning, You're listening to Bloomberg Daybreak, markets, headlines and 0:18:03.520 --> 0:18:06.760 breaking news twenty four hours a day at Bloomberg dot Com, 0:18:06.880 --> 0:18:10.440 the Bloomberg Business Outland at Bloomberg Quick Tape. This is 0:18:10.440 --> 0:18:19.440 a Bloomberg Business Flash and I'm Karen Moscow Equity is 0:18:19.480 --> 0:18:21.680 on the rise this morning, while the dollar declines amid 0:18:21.760 --> 0:18:25.399 positive sentiment from China's rollback of COVID isolation measures and 0:18:25.480 --> 0:18:27.920 the cooling of a key inflation engage in the US. 0:18:28.240 --> 0:18:30.240 We checked the markets all day long year on Bloomberg. 0:18:30.400 --> 0:18:32.840 SMP Future is up about twenty six points, or seven 0:18:32.840 --> 0:18:35.399 tenths of uppercent. Down Future is up six tenths of 0:18:35.480 --> 0:18:38.440 upper cent or two hundred fourteen points. NASAC Future is 0:18:38.480 --> 0:18:40.800 up six tents of a percent or sixty five points. 0:18:41.040 --> 0:18:43.479 The decks in Germany's up three quarters of a percent. 0:18:43.760 --> 0:18:46.240 Ten year treasury down seven thirty seconds. He had three 0:18:46.240 --> 0:18:48.560 point seven seven percent. They yield on the two year 0:18:48.640 --> 0:18:51.480 four point three four percent, and I'm ex Scrude oil 0:18:51.600 --> 0:18:53.480 is up one percent or eighty one cents at eighty 0:18:53.480 --> 0:18:56.840 dollars thirty seven cents of barrel. That's a Bloomberg business flash. 0:18:56.840 --> 0:18:58.920 Now here's Michael Barg with more on what's going on 0:18:59.000 --> 0:19:01.720 around the world. Make Karen, thank you very much. President 0:19:01.800 --> 0:19:05.399 Biden has approved New York's emergency declaration as the death 0:19:05.440 --> 0:19:08.840 toll from a pre Christmas blizzard that paralyzed the Buffalo 0:19:08.960 --> 0:19:11.560 area and much of the country has risen to eight. 0:19:12.080 --> 0:19:14.359 The dead have been found in their cars, homes, and 0:19:14.440 --> 0:19:18.120 in snow banks. Meanwhile, thousands of flights were canceled or delayed, 0:19:18.280 --> 0:19:22.240 and more are scrapped for today. South Korea sent drones 0:19:22.280 --> 0:19:26.240 across the border into North Korea. It is an unprecedented 0:19:26.680 --> 0:19:31.280 for tant military move. After Kim John UN's regime dispatched 0:19:31.400 --> 0:19:36.120 five unmanned aerial vehicles into its air space. Monday Night football, 0:19:36.119 --> 0:19:39.480 the Chargers beat the Colts twenty three in the NBA. 0:19:39.680 --> 0:19:42.600 The NETS one Global News twenty four hours a day 0:19:42.720 --> 0:19:46.240 on air and on Bloomberg Quicktake, powered by more than 0:19:46.280 --> 0:19:48.960 twenty seven hundred journalists and analysts and more than a 0:19:49.040 --> 0:19:53.040 hundred twenty countries. How Michael barn this is Bloomberg, John Michael, 0:19:53.080 --> 0:19:55.399 thank you. It's kind of up on six four on 0:19:55.600 --> 0:19:59.080 Wall Street. Hum. John Tucker, you are listening to Bloomberg Daybreak. 0:19:59.440 --> 0:20:02.600 Let's continue knew our focus on the technology sector this 0:20:02.760 --> 0:20:07.320 morning with Dan Eyes, Managing director at wet Bush Securities. 0:20:07.840 --> 0:20:12.800 Dan at the intersection of tech investing and monetary policy. 0:20:13.320 --> 0:20:15.479 Let's talk about some of the wild cards that are 0:20:15.560 --> 0:20:21.080 out there for technology in three interest rate policy. What's 0:20:21.119 --> 0:20:25.920 the expectation and what is the ultimate impact on technology? Well, 0:20:26.400 --> 0:20:29.320 ultimately that's really been the black cloud over tech and 0:20:29.480 --> 0:20:31.800 risk assets. I mean, is the FED continues to be 0:20:31.920 --> 0:20:37.080 on this hawkish path towards ultimately combat and inflation. Are 0:20:37.160 --> 0:20:39.800 they in the seventeen eighth or nine now? The one 0:20:39.920 --> 0:20:43.520 thing it feels definitely like in the first sort of 0:20:43.640 --> 0:20:46.880 quarter and a half two the FED will be done 0:20:46.920 --> 0:20:49.639 with those hikes. And that's the important thing is that 0:20:50.280 --> 0:20:53.359 right now, that's the biggest variable that I think in 0:20:53.560 --> 0:20:56.480 terms of investors really diving into the deep end of 0:20:56.520 --> 0:20:59.480 the pool and risk assets. It's FED driven. It's ten 0:20:59.600 --> 0:21:02.080 years of been, but we we were starting in the 0:21:02.200 --> 0:21:05.040 eighth ninth dinning. That's why we beat bullish on tech. Here. 0:21:05.480 --> 0:21:09.159 Can you further differentiate those names that are more consumer 0:21:09.480 --> 0:21:13.760 of facing, Yeah, I think when you look at names 0:21:13.800 --> 0:21:16.240 that have really taken on the chin the upper concept, 0:21:16.400 --> 0:21:20.040 names like Amazon, which obviously is very heavily exposed in 0:21:20.160 --> 0:21:22.800 terms of the consumer trends, but on some of the parts. 0:21:22.840 --> 0:21:25.040 If you look at the cloud business, I think that's 0:21:25.080 --> 0:21:29.000 an undervalued piece. You look at Meta, I mean Zuckerberg 0:21:29.040 --> 0:21:32.119 and Facebook, that's really been you know, what's been a 0:21:32.240 --> 0:21:35.240 disaster year in terms of two thousand twenty two because 0:21:35.320 --> 0:21:39.399 of that aggressive what we've we've risky moved ultimately the 0:21:39.440 --> 0:21:43.159 metaborth strategy and now it's really about them peeling that 0:21:43.359 --> 0:21:46.199 back and focused on social media. And then you look 0:21:46.240 --> 0:21:48.320 at other names. Of course, you look at names like 0:21:48.359 --> 0:21:50.520 Alphabet in terms of Google and some of these other 0:21:50.720 --> 0:21:54.000 digital advertising players. But but like I was taking. I 0:21:54.119 --> 0:21:55.760 believe there's me a lot of M and A and 0:21:55.840 --> 0:21:58.000 I think a lot of these spots are baking in 0:21:58.080 --> 0:22:01.360 almost army getting like new is and there's why any 0:22:01.440 --> 0:22:04.639 relief we gets in tected ripple out higher. And at 0:22:04.680 --> 0:22:06.680 the end of your note that you passed along you 0:22:06.760 --> 0:22:10.400 have favorite cloud names, favorite cyber security names, favorite under 0:22:10.440 --> 0:22:14.240 the radar names, favorite overall tech name, top M and 0:22:14.320 --> 0:22:16.840 A candidates. Let's go right through the list. If you 0:22:16.880 --> 0:22:20.560 would start with the favorite cloud names, Yes, the favorite 0:22:20.600 --> 0:22:23.879 cloud names. Microsoft. In our opinion, communes would be the 0:22:23.920 --> 0:22:26.399 best way to play cloud in terms of the strength 0:22:26.480 --> 0:22:28.960 we're seen in Redmond, and I think that's gonna be 0:22:29.000 --> 0:22:33.000 a resilient area of spend despite some of the macro 0:22:33.160 --> 0:22:35.639 storm cloud. I also look at Salesforce dot com. I 0:22:35.720 --> 0:22:38.040 mean that's the name time and thrown out in the 0:22:38.119 --> 0:22:41.320 garbage here. I think there's been more activism. There's a 0:22:41.440 --> 0:22:44.640