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Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg

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Speaker 1: day Break for Thursday, December eighty two. Coming up to Shower,

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Speaker 1: Wall Street looks to snap a five day losing streak

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Speaker 1: as recession fears pile up. Socks in Hong Kong rally

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Speaker 1: under force at mass wearing requirements, maybe scraped Elon Musk's

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Speaker 1: bankers consider new margin LUNs to cut risky Twitter debt

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Speaker 1: and disgrace. Crypto founder Sam Bankman Freed may soon appear

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Speaker 1: on Capitol Hill. Governor hokel announces her plans for New

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Speaker 1: Yorkers to avoid the Triple Demick. Plus, New Jersey Governor

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Speaker 1: Murphy is out of the hospital, left of surgery. On

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Speaker 1: Michael bar More Ahead, I'm John Stay Shower and Sports.

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Speaker 1: Aaron Judge resigned with the Yankees, the Mets at a

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Speaker 1: picture wins for the Knicks, Nets Rangers in St. John.

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Speaker 1: That's all s Train ahead on Bloomberg Daybreak on Bloomberg

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Speaker 1: eleven Free on New York, Bloomberg N one, Washington, d C,

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Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and

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Speaker 1: Francisco Sirius x M one nine Team and around the

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Speaker 1: world old on Bloomberg Radio Dot Carmen the Bloomberg Business.

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Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow, and

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Speaker 1: US stock index futures are mostly higher this morning. Sex

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Speaker 1: So went on Wall Street and we check the markets

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Speaker 1: all day long here at Bloomberg radios and p futures

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Speaker 1: of four points or a tenth of a percent. Our

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Speaker 1: futures that will change and nasday futures have two ten

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Speaker 1: percent or twenty four points. Tenure treasury down eight thirty seconds.

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Speaker 1: You three point four or four percent yield on the

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Speaker 1: two year four point to seven percent. Nathan Karen. Stocks

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Speaker 1: are coming off five straight days of losses, and the

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Speaker 1: biggest moves have been in the bond market. The spread

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Speaker 1: between the two and tenure yields, a gage often used

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Speaker 1: to predict recessions, is it's most inverted since the nineteen seventies.

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Speaker 1: David Harden is chief investment Officer at Summit Global Investments. Well,

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Speaker 1: I think people are still a little bit focused on

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Speaker 1: the possibility of this uh PAL pivot. I think that's

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Speaker 1: in people's minds and hopes. I think maybe they're wanting

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Speaker 1: that under their Christmas tree, if you will and and

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Speaker 1: so I think this starts a little bit more focused

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Speaker 1: on him playing Santa Claus for us. But in all reality,

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Speaker 1: the bond market might have it right. They seem to

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Speaker 1: get it right a lot more often, so we have

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Speaker 1: to pay attention to that move. Some global investments, David

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Speaker 1: Harden says the main focus for traders remains sharply on

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Speaker 1: the FED well in Asia overnight, Nathan Hong Kong was

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Speaker 1: the top performer in the region. The Hankstang game more

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Speaker 1: than three percent in today's session, and we get the

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Speaker 1: recap from Bloomberry, Yvon Man in Hong Kong, Karen and Nathan.

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Speaker 1: The region really only being lifted by one story in

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Speaker 1: Hong Kong after reports the city is looking at scrapping

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Speaker 1: rules that require masks at public venues. Also cut in

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Speaker 1: quarantine times from seven to five days. The reopening trade

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Speaker 1: was once again on fire, from a calcasino's airlines to

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Speaker 1: retail all up on the news. This clear preference on

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Speaker 1: Chinese equities and M and B is quite clear now,

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Speaker 1: with sources telling us Chinese regulators have asked the nation's

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Speaker 1: biggest insurers to buy bonds after retail investors offload to

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Speaker 1: cash from their fixed income investments. In Hong Kong, I'm

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Speaker 1: Von Man Bloomberg Daybreak, All right, Von, thank you. Meantime

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Speaker 1: in China, a senior health advisers warning the vast majority

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Speaker 1: of the population could eventually contract COVID. The government is

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Speaker 1: now taking steps toward reversing its zero tolerance policy. The

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Speaker 1: former deputy chief of China's disease Control agency says sixty

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Speaker 1: of the population could get infected in the first wave.

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Speaker 1: Well back here in the US, Nathan Tesla and Twitter

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Speaker 1: are the names where watching bankers for Elon Musk are

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Speaker 1: considering providing the billionaire with new margin loans tied to

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Speaker 1: the companies. Let's get the details live with the Bloomberg

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Speaker 1: Steve Rappaport, Good morning, Steve, Good morning, Karen and Nathan.

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Speaker 1: The margin loans are one of several options for Musk's

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Speaker 1: backers to ease the burden of the thirteen billion dollars

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Speaker 1: in debt Twitter took on as part of his acquisition

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Speaker 1: of the platform. The banks, led by Morgan Stanley, put

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Speaker 1: up their own cash to carry the entire debt package.

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Speaker 1: Because of the decline and credit markets, Musk's tumultuous start

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Speaker 1: at the helm of Twitter didn't help either. The company

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Speaker 1: is estimated to face annual interest costs of about one

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Speaker 1: point two billion dollars if the current debt structure remains

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Speaker 1: in place. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak.

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Speaker 1: All right, Steve, Thanks. Turning to the crypto space, we

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Speaker 1: could soon get more information on the epic collapse of

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Speaker 1: f t X. Disgraced founder Sam Bankman Freed may appear

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Speaker 1: on Capitol Hill as soon as next week. We get

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Speaker 1: the details from Amy Morris in our Bloomberg ninety one

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Speaker 1: newsroom in Washington. The Senate Banking Committee has asked Bankman

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Speaker 1: Freed to appear on Capitol Hill December four. Lawmakers want

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Speaker 1: more information about the collapse of f t X, and

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Speaker 1: they want to know, quote, how client funds were misappropriated,

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Speaker 1: how clients were blocked from withdrawing their own money, and

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Speaker 1: how you orchestrated a cover up. The House Financial Services

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Speaker 1: Committee hearing except for the thirteen Bank mun Freed had

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Speaker 1: said he might not be ready to testify by then.

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Speaker 1: Chair Maxine Water says a subpoena is quote definitely on

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Speaker 1: the table in Washington. I'm Amy Moore as Bloomberg Daybreak,

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Speaker 1: All right, Amy, thank you, and now it's not the

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Speaker 1: only news on disgraced former executives this morning. Late yesterday,

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Speaker 1: former theropised president and chief operating officer Ram Sunny Malwani

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Speaker 1: but sentenced to prison, and Bloomberg said, Baxter has the story.

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Speaker 1: The sentence coming from US District Judge Edward Davola and

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Speaker 1: San Jose thirteen years for defrauding investors and patients of Pharanos.

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Speaker 1: Dogwani ran the blood testing startup alongside its founder and

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Speaker 1: chief executive officer, Elizabeth Holmes. The sentence is very close

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Speaker 1: to what prosecutors had asked for a term of fifteen years.

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Speaker 1: The judge said he'll decide later how much restitution must

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Speaker 1: be paid. The government has asked for both to be

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Speaker 1: ordered to pay about eight hundred million dollars in San Francisco,

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Speaker 1: I'm at Baxter Bloomberg Daybreak, all right, and thank you.

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Speaker 1: In the labor market, inflation plus a battle for talent,

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Speaker 1: and now cost cutting efforts and making for an interesting

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Speaker 1: picture of corporate America. And now we're learning X on

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Speaker 1: mobiles awarding its employees in the US pay increases above inflation.

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Speaker 1: Just weeks after posting record profit. Bloomberg's Charlie p Hellett

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Speaker 1: has more. It underscores just how strong two has been

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Speaker 1: for the fossil fuel industry. A lot of sectors, like

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Speaker 1: technology and finance are cutting jobs. Sources tell Bloomberg workers

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Speaker 1: will receive an average salary bump of nine percent on

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Speaker 1: Those who got promoted will see an additional five percent increase.

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Speaker 1: A spokeswoman four x on Mobile says in aggregate it

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Speaker 1: is Exxon's biggest salary award in fifteen years. In New York,

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Speaker 1: Charlie Pealty Bloomberg day Break, Great, Charlie. Thanks, and it's

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Speaker 1: a different labor story At the New York Times, more

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Speaker 1: than a thousand employees are preparing to stage a one

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Speaker 1: day walk out today. It escalates a standoff with the

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Speaker 1: management over a stamped contract. A New York Times spokesperson

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Speaker 1: said the company was disappointed that the News guild was

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Speaker 1: threatening to strike. In futures this morning are higher, s

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Speaker 1: and P future is a five points or a tenth

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Speaker 1: of a percent down. Futures are a little changed and

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Speaker 1: ASDAC futures have a quarter percent or twenties six points

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Speaker 1: straight ahead. We have your latest local headlines plus the

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Speaker 1: check of sports, and this is Bloomberg Karen, Thanks six

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Speaker 1: o seven on Wall Street. Fifty degrees in Central Park.

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Speaker 1: Should stay sunny and cool today with highs in the

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Speaker 1: low fifties, but getting ready for a big change at

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Speaker 1: the end of the week and the possibility potential for

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Speaker 1: some snow. It's bringing Michael bar for Look what else

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Speaker 1: is going on in New York and around the world. Yes,

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Speaker 1: I said it the S word. Thanks, You're welcome. You're

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Speaker 1: having Tocalist pushing efforts to keep New Yorkers healthy with

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Speaker 1: winter and the holiday is just ahead. Hocal says people

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Speaker 1: need to take precautions because COVID cases are taking up

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Speaker 1: alongside r s V in children and influenza. Are not

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Speaker 1: all the woods. That thread is real and we have cases.

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Speaker 1: Remember this. We're watching this intensely. The winter is often

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Speaker 1: a tough time for the most vulnerable, but Hocal promises

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Speaker 1: New Yorker will be ready. Complacency is our enemy. That

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Speaker 1: is my biggest fear, that people are so desensitized and

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Speaker 1: feeling that well, it is the norm. Yes, it has

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Speaker 1: become our norm, but it does not have to be norm.

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Speaker 1: That everybody gets sick Governor Hocal said as the state

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Speaker 1: will provide testing vaccines and nearly eight thousand ventilators set

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Speaker 1: to be sent to hospitals that need them. Mayor Eric

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Speaker 1: Adams says the system to provide affordable housing is broken,

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Speaker 1: not just in New York City, but all over the country. Adams,

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Speaker 1: speaking at a faith based summits in New York, says,

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Speaker 1: all we do is kick the can down the road.

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Speaker 1: There's no desire to come and bring you together and

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Speaker 1: say you have all of this property, why don't you

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Speaker 1: come with a real housing plan. There's no desire to

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Speaker 1: fix it. People are making money off the dysfunctionality of

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Speaker 1: our cities across the America. Frustrated Adam says, we know

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Speaker 1: at the beginning of the year we are going to

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Speaker 1: fail a large number of people, and they're primarily black

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Speaker 1: and brown in immigrants. The White House says President Joe

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Speaker 1: Biden will announce the thirties six billion dollar bailout for

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Speaker 1: the Central States Pension Fund, helping to shore up one

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Speaker 1: of the nation's biggest multi employer plans. The President angered

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Speaker 1: some of his labor allies last week by signing legislation

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Speaker 1: imposing a contract he personally helped to negotiate between freight

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Speaker 1: railroads and their unions, averting a possible strike that threatened

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Speaker 1: to cripple the economy. However, four of the unions involved

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Speaker 1: rejected the contract. New Jersey Governor Phil Murphy had minor

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Speaker 1: surgery yesterday and his recuperating at home. The Governor's office

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Speaker 1: did not specify what the surgery was for, but said

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Speaker 1: it was a medical procedure. Officials also said it was

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Speaker 1: not related to the kansaas tumor Murphy had removed from

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Speaker 1: his kidney. In Global News twenty four hours a day

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Speaker 1: on air and on Bloomberg Quick Take, powered by more

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Speaker 1: than twenty seven hundred journalists and analysts more than a

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Speaker 1: hundred twenty countries, Michael Barr and This Bloomberg Nathan Thanks Michael.

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Speaker 1: Almost six ten on Wall Street Time for the Bloomberg

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Speaker 1: Sports that Day, brought to you by Try State. How

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Speaker 1: did U s Johnstad Show? Thanks Nathan. After the news

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Speaker 1: that Aaron Judge had resigned with the Yankees, some details

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Speaker 1: emerged about how it all went down. Believed to be

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Speaker 1: a two horse race between the Yankees and Giants. The

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Speaker 1: same Diego Padres swooped in offered Judge reported ten years,

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Speaker 1: four hundred million dollars that got the attention to him

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Speaker 1: Nankee owner Hall Hall Steinbrenner, who was vacationing in Italy.

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Speaker 1: He got on the phone with Judge upped his offer

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Speaker 1: to the nine years, three hundred sixty million that got

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Speaker 1: the deal done. Yankee g M. Brian Cashman said Steinbrenner

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Speaker 1: was the Mariano Rivera of the negotiations. The Padres then

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Speaker 1: used some of that money last night to sign Xander

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Speaker 1: Bogart's away from the Red Soft for eleven years, two

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Speaker 1: hundred and eighty million. The Mets added a picture veteran

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Speaker 1: Jose Quintana. This will be his seventh team. He pitched

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Speaker 1: to an e r A under three last season nixt

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Speaker 1: all of a sudden playing defense. They had allowed over

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Speaker 1: a hundred points in each of the first twenty three games.

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Speaker 1: They allowed under ninety in the last two being Atlantic.

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Speaker 1: The Garden went thirteen to eighty nine. Big night for

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Speaker 1: Julius Randall thirty four points, seventeen rebounds at Barkley's then

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Speaker 1: estimated five of the last six beat Charlotte won two

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Speaker 1: to one, sixteen. Kyber Yourving thirty three points, Kevin Durant

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Speaker 1: had twenty nine and set Curry twenty but three of

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Speaker 1: them combined for one three assists. Big third period for

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Speaker 1: the Rangers. They scored four times and a span of

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Speaker 1: less than six minutes, and they beat Vegas, the top

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Speaker 1: team in the West, five to one. In Buffalo's win

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Speaker 1: over Columbus, five goals for the Sabers, Page Thompson he

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Speaker 1: ted NHL record, scoring four goals in the first period,

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Speaker 1: Big East opener for St. John's eight six sixty seven

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Speaker 1: win over to Paul John Stash Howard, Bloomberg Sports Nathan

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Speaker 1: all Right, John, thank you. Bloomberg Sports is brought to

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Speaker 1: you by Audie. Don't let someone else drive off in

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Speaker 1: the Audi model you've always wanted. Visit your local try

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Speaker 1: state Audie dealer to get behind the wheel of yours today,

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Speaker 1: or visit Autie Offers dot com for more information. Just ahead,

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Speaker 1: we'll get the latest on Elon Musk and Twitter. Could

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Speaker 1: the deal be restructured for the forty four billion dollar

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Speaker 1: take over. We'll get more on that shortly. First, futures

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Speaker 1: are moving just a touch higher now, with SMP futures

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Speaker 1: up three points, Staff futures little changed, up five points,

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Speaker 1: and NASTAC futures are higher by seventeen points ten. Your

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Speaker 1: treasuries down seven thirty seconds, the yield on the benchmark

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Speaker 1: three point four four percent and at six twelve on

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Speaker 1: Wall Street. Good morning, this is Bloomberg Day Break. We

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Speaker 1: want to get to the latest on Twitter. Now. The

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Speaker 1: saga continues with the new loan or elon Musk potentially

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Speaker 1: in line to have the massive pile of debt he

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Speaker 1: took on to buy the company restructured with new margin

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Speaker 1: loans backed by stock from one of his other companies, Tesla.

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Speaker 1: Let's bring in Bloomberg Quick Take correspondent Alex Webb for

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Speaker 1: more on this news. Alex, good morning. How would this

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Speaker 1: restructuring work exactly? Yes, So, as you say, he has

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Speaker 1: pretty high interest payments right now on on the debt

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Speaker 1: that was raised to pay for Twitter. In fact, Bloomberg

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Speaker 1: has reported that the interest costs are about one point

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Speaker 1: two billion dollars a year. That's considerably more than could

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Speaker 1: has ever managed to post in free cash flow. Um. So,

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Speaker 1: what this seems to be doing is that he would

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Speaker 1: then take a margin loan backed by his Tesla stock,

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Speaker 1: which would then presumably be at a far um more

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Speaker 1: amenable interest rate UM and be able to then pay

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Speaker 1: down some of those those other um uh, some of

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Speaker 1: the there's other loans that he has taken UM in

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Speaker 1: order from the deal. Oh say, so what could the

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Speaker 1: potential impact v on Tesla's stock given that, as far

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Speaker 1: as I understand it, these margin loans are going to

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Speaker 1: be backed by shares of Tesla. I'm looking at the

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Speaker 1: stock in the pre market this morning, it's moving a

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Speaker 1: little bit lower. Does this put Tesla under even more pressure?

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Speaker 1: It's hard to see how it doesn't put down Tessa

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Speaker 1: under a little bit of pressure. Of course, you know,

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Speaker 1: this is still going to be a very small proportion

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Speaker 1: of the total um float of Tesla ches um. The

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Speaker 1: unit stock has come down quite a lot since Elon

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Speaker 1: got involved with Twitter, and it does mean that there

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Speaker 1: will be a certain amount of volatility tied to Twitter's performance.

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Speaker 1: You know, Twitter fails to um improve its financial performance,

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Speaker 1: then there's an implication that some of the Tesla stock

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Speaker 1: may go away from you know, you know, might have

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Speaker 1: to sacrifice some of that tess stop extreme eventuality. But

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Speaker 1: it's a possibility. Yeah, And how are we structuring like

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Speaker 1: this effect the risks that the banks themselves have taken on.

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Speaker 1: From what I understand, they put a lot of their

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Speaker 1: own cash into the original deal for Elon Musk to

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Speaker 1: buy Twitter. Well, well, that is unclear because we don't

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Speaker 1: know exactly which part of the um the debt would

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Speaker 1: be repaid. Blooms reported is po likely to be the

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Speaker 1: unsecured debt um which from which Twitter pay is an

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Speaker 1: interest rate of about eleven point seven five percent, But

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Speaker 1: there are still other parts that, um, you know, the

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Speaker 1: banks haven't been able to re sell given the the

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Speaker 1: tightening conditions in in the debt market or the more

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Speaker 1: difficult conditions in the debt market. So it may be

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Speaker 1: that this is really about Elon Robin the banks themselves. Well,

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Speaker 1: what does this say? What what are the implications for

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Speaker 1: Elon Musk's own solvency here when he's thinking about taking

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Speaker 1: margin loans like this? What what does it potentially tell

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Speaker 1: us about Elon musks on financial security. Well, I mean

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Speaker 1: it's clearly some slightly imaginative, Um, it's in a matching

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Speaker 1: way for him to generate funding. He yes, he's the

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Speaker 1: richest man in the world. His wealth has still come

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Speaker 1: down from um, you know, the order of two hundred

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Speaker 1: and eighty billion UM a year ago to only in

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Speaker 1: inverted commas a hundred and seventy one billion today. This

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Speaker 1: remains a small slice of his net worth, but of

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Speaker 1: course he doesn't have that many liquid assets. Most of

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Speaker 1: that network is tied up in his test stock is

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Speaker 1: SpaceX stock UM and of course now Twitter itself, So

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Speaker 1: he doesn't have the liquidity that the big tick sticker

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Speaker 1: number would imply, and that's why he has to resort

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Speaker 1: somebody slightly more imaginative financing options. Of course, a lot

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Speaker 1: of what we've seen in terms of trying to get

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Speaker 1: Twitter back on a firmer financial footing is to do

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Speaker 1: huge rounds of layoffs and lots of cost thing. Since

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Speaker 1: Elon Musk has taken over, does that change things in

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Speaker 1: terms of how a restructuring of the debt could be

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Speaker 1: handled here, Yes, because if it means that the debt

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Speaker 1: repayments UM are reduced, then the need to find capital

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Speaker 1: quickly and find cash flow quickly is diminished. You know,

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Speaker 1: there's a little bit of a catch twenty two situation

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Speaker 1: here where if he cuts jobs too quickly then uh,

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Speaker 1: it poses risks to income because you've seen a lot

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Speaker 1: of advertisers back away from Twitter, at least on a

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Speaker 1: temporary basis. So you know, Twitter was expected before this

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Speaker 1: deal was completed to have um negative free cash flow

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Speaker 1: of about twenty three million dollars this year. That would

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Speaker 1: have been increasing to an order of two hundred million

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Speaker 1: dollars next year. That's a long way short of the

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Speaker 1: one point two billion a year that he needs to find.

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Speaker 1: He is having now come in and cleared the deck

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Speaker 1: at the phase where he has to work out now

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Speaker 1: how to make more money, and that you know, he's

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Speaker 1: likely to require adding head count, certainly in some positions,

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Speaker 1: not least in engineering roles. So giving a little bit

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Speaker 1: of financial flexibility might enable him to do that. All right,

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Speaker 1: Alex Webb as always good to talk with you as

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Speaker 1: the Twitter Elon Musk saga continues. Alex Webb quick take,

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Speaker 1: correspondent at Bloomberg News, joining US Live this morning and

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Speaker 1: again Tesla shares onward that Elon Musk bankers are considering

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Speaker 1: new margin loans backed by Tesla stock. Tesla's down just

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Speaker 1: about two percent in the pre market. Futures little changed

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Speaker 1: this morning. SMP futures are up two points, STOW futures

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Speaker 1: down one Nasdaq futures are higher by fourteen points, the

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Speaker 1: tenure treasuries down six thirty seconds, the three point four

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Speaker 1: or four percent, and the yield on the two year

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Speaker 1: right now four point to six percent. Still ahead. We'll

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Speaker 1: look at Republicans priorities when they take back the majority

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Speaker 1: in the House. Next. About the conversation on the way

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Speaker 1: with GOP Congressman French Hill of Arkansas. This is Bloomberg Markets,

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Speaker 1: headlines and breaking news twenty four hours a day at

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Speaker 1: Bloomberg dot Com, the Bloomberg Business Attend at Bloomberg Quick Tape.

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Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

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Speaker 1: And US dondex futures are steady after a five day

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Speaker 1: routes sparked by concerns at the Federal Reserve overmain hawkish

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Speaker 1: in the face of economic headwinds. And we check the

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Speaker 1: markets all day long here on Bloomberg Radio, with US

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Speaker 1: and P futures up four points of a tenth of

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Speaker 1: Upper sent DAL future is little changed and NASDAG future

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Speaker 1: is up almost two tenths per cent or twenty points.

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Speaker 1: The decks in Germany is down about four tenths of

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Speaker 1: a per cent. Ten Your treasury down six thirties seconds

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Speaker 1: held three point four or four percent. That yield on

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Speaker 1: the two year four point to six percent. NIMEX screwed

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Speaker 1: oil is up seven tenths percent or fifty cents. It's

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Speaker 1: a seventy two fifty cents of barrel. And that's a

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Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on

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Speaker 1: what's going on around the world. Michael Karen, thank you

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Speaker 1: very much. At least two more classified documents have been

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Speaker 1: found in possession of former President Donald Trump, his lawyers

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Speaker 1: saying they discovered the material while searching a storage unit

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Speaker 1: in West Palm Beach, Florida. The House is set to

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Speaker 1: take a final vote on protections for same sex marriages.

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Speaker 1: Today's vote will sent the legislation to President Joe Biden.

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Speaker 1: In the NBA, the Nets, Knicks and Celtics were winners,

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Speaker 1: the Wizards and Warriors lost. In the NHL, the Rangers,

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Speaker 1: Bruins and Capitals. All one Global News twenty four hours

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Speaker 1: a day on air and on Bloomberg quick Take, powered

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Speaker 1: by more than seven hundred journalists, had analysted more than

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Speaker 1: one d twenty countries. I'm Michael Barr, and this is Bloomberg.

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Speaker 1: Nathan all right, Michael, thank you. It is six three

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Speaker 1: on Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak.

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Speaker 1: Well after the Georgia Senate runoff at Raphael Warnock securing

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Speaker 1: the final Senate seat for Democrats, the new Congress is

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Speaker 1: outlining its priorities for the new year, and Republican Congressman

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Speaker 1: French Hill of Arkansas spoke with our David Weston on

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Speaker 1: Bloomberg's Balance Power to discuss financial regulation priorities in the

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Speaker 1: new Congress, including cryptocurrency regulation. Let's talk about the next

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Speaker 1: Congress and what you anticipate. Now you're gonna be in

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Speaker 1: the majority position here, uh so you're gonna have more

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Speaker 1: say over what happens. What do you want to get accomplished?

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Speaker 1: You and your Committee Financial Service commedite. What do you

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Speaker 1: want to get a complish in the next and the

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Speaker 1: next Congress? This upcoming congress, we set the agenda in

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Speaker 1: House Financial Services Committee. We have some key goals we

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Speaker 1: want to pursue. First, we'd like to have a bipartisan

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Speaker 1: oversight and regulatory measure for digital assets. We'd like to

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Speaker 1: take the collapse of f t X and do something

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Speaker 1: positive with that by having a consensus on both sides

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Speaker 1: of the hill on the right kind of regulatory proposal

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Speaker 1: for the digital assets and one that will preserve that

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Speaker 1: business here in the United States and preserve the ability

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Speaker 1: to innovate on blockchain. We think that's key. Next, we'd

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Speaker 1: love to find a solution on a permanent reauthorization of

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Speaker 1: the flood insurance program. We're on seventeen eighteen continuing resolutions there.

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Speaker 1: I'd like to see a permanent reauthorization of our national

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Speaker 1: flood program. It's important to our communities, homeowners, resilient communities,

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Speaker 1: so that's a key feature. And look, we want to

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Speaker 1: make sure our regulatory agencies like the SEC, the bank regulators,

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Speaker 1: don't block capital formation. So you'll see US approve policy

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Speaker 1: ideas and legislative ideas that enhance capital formation. So let's

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Speaker 1: pick up a couple of as we could. Let's start

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Speaker 1: with FTX in the crypto situation. As I understand it,

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Speaker 1: before you get to the new Congress, you're plan on

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Speaker 1: having some hearings in the current Congress. In the Lame

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Speaker 1: Ducks edition, do we know whether Sam bankman Fried is

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Speaker 1: gonna show up or not as he told you? And

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Speaker 1: if he doesn't, will you compel him? Well, he tweeted

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Speaker 1: that he wasn't going to appear, and I think Patrick McKendry,

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Speaker 1: the ranking Republican, and Maxine Waters, the chair of the committee,

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Speaker 1: they want him here personally. If he's got time to

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Speaker 1: interview a deal with Andrew Ross Sorkin and make all

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Speaker 1: these Twitter appearances, he can appear before our committee. I

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Speaker 1: would certainly encourage Patrick mckenry and Share Waters to work

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Speaker 1: together to compel him to appear. We want answers to

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Speaker 1: what happened at ft X. Do you have a sense,

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Speaker 1: Congressman going past ft X Once you figure out what happened,

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Speaker 1: what sorts of regulation may be appropriate from Congress or

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Speaker 1: doesn't have to come from the regulators. Well, I know.

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Speaker 1: Reggie Torrez, a member of Congress from New York, wrote

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Speaker 1: Chairman Ginsler, blaming the f t X collective collapse on him,

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Speaker 1: that he has all the power to have properly handled

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Speaker 1: this and he didn't exercise it. So there is concerned

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Speaker 1: about what authorities the regulators have and what authorities they

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Speaker 1: don't have. I think we ought to have a legislative

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Speaker 1: solution define what a digital asset is and provides some

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Speaker 1: transparency and clarity for consumers, investors, and innovators on blockchain

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Speaker 1: as to what the rules are. We have a functional

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Speaker 1: regulation system in our country, whether you're a commodity or

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Speaker 1: a security, whether you're to be regulator as an investment

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Speaker 1: or something else, and we need to clarify that so

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Speaker 1: that America remains an innovative place for blockchain. And that

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Speaker 1: was Republican Congressman French Hill of Arkansas speaking with David

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Speaker 1: Weston on Bloomberg's Balance of Power. You can get the

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Speaker 1: full interview on Bloomberg dot Com and on the Bloomberg terminal.

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Speaker 1: Don't forget to tune into Balance of Power weekdays on

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Speaker 1: Bloomberg Radio. It begins at noon Wall Street time. Bloomberg

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Speaker 1: Daybreak is brought to you by ancient accountants and advisors,

430
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433
00:23:42,560 --> 00:23:45,719
Speaker 1: v I P futures just to touch higher Right now,

434
00:23:45,840 --> 00:23:49,320
Speaker 1: S and P futures are up five points, NASTAC futures

435
00:23:49,400 --> 00:23:51,800
Speaker 1: up nineteen. We'll get a look at your top stories,

436
00:23:51,800 --> 00:23:54,040
Speaker 1: plus your local headlines in a full check of markets.

437
00:23:54,080 --> 00:23:57,639
Speaker 1: Just to head first, here's Bloomberg meteorologist Rob Carolin with

438
00:23:57,720 --> 00:24:01,159
Speaker 1: a look at the weather forecast. There'll be some passing

439
00:24:01,200 --> 00:24:03,040
Speaker 1: flowning this today, but all in all, the triest Toady

440
00:24:03,040 --> 00:24:05,639
Speaker 1: area should end up partly sunny today with temperatures between

441
00:24:05,680 --> 00:24:08,800
Speaker 1: fifty and fifty five. This afternoon, we're partly cloudy loves

442
00:24:08,840 --> 00:24:10,560
Speaker 1: in the city overnight near thirty five, will be in

443
00:24:10,600 --> 00:24:13,720
Speaker 1: the twenties and the suburbs. I pressure holds on through tomorrow,

444
00:24:13,720 --> 00:24:17,160
Speaker 1: partial sun forty five, partly to mostly cloudy for Saturday

445
00:24:17,200 --> 00:24:19,240
Speaker 1: forty five, and there's a chance of rain of wet

446
00:24:19,280 --> 00:24:23,120
Speaker 1: snow on Sunday. I'm Rob Caroline with your weekend forecast

447
00:24:23,160 --> 00:24:29,439
Speaker 1: on Bloomberg eleven three oh broadcasting live from the Bloomberg

448
00:24:29,520 --> 00:24:33,960
Speaker 1: Interactive Broker's studio in New York, Bloomberg elving to Washington,

449
00:24:34,040 --> 00:24:37,920
Speaker 1: d C, Bloomberg one to Boston, Bloomberg one O six

450
00:24:38,000 --> 00:24:41,720
Speaker 1: one to San Francisco, Bloomberg sixty to the Country, Syria's

451
00:24:41,880 --> 00:24:44,320
Speaker 1: xm J A one nine team, and around the globe

452
00:24:44,359 --> 00:24:48,359
Speaker 1: the Bloomberg Business and Bloomberg Radio dot Com. This is

453
00:24:48,400 --> 00:24:57,520
Speaker 1: Bloomberg Daybreak six on Wall Street. Good morning, I'm Nathan

454
00:24:57,560 --> 00:25:01,040
Speaker 1: Haggard and I'm Karen Moscow. We're nearly three hours away

455
00:25:01,040 --> 00:25:03,200
Speaker 1: from the open of US trading. Time for the five

456
00:25:03,200 --> 00:25:05,280
Speaker 1: things that you need to note to start your day.

457
00:25:05,320 --> 00:25:08,240
Speaker 1: Brought to you by Interactive Brokers I b k R.

458
00:25:08,320 --> 00:25:10,639
Speaker 1: Event Trader offers a new way to trade futures. Use

459
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Speaker 1: event contracts to trade your opinion on yes or no

460
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Speaker 1: questions and key CME futures markets. Learn more at event

461
00:25:16,680 --> 00:25:20,760
Speaker 1: trader dot Interactive Brokers dot com up first US DOT

462
00:25:20,800 --> 00:25:24,280
Speaker 1: Index futures are mostly higher this morning. Songs are coming

463
00:25:24,320 --> 00:25:27,119
Speaker 1: off five straight days of losses, and the spread between

464
00:25:27,119 --> 00:25:29,280
Speaker 1: the two year and ten year yields is the most

465
00:25:29,320 --> 00:25:33,280
Speaker 1: inverted since the nineteen seventies. PGM chief investment strategist and

466
00:25:33,320 --> 00:25:36,600
Speaker 1: head of Global Bonds, Robert Tipps says he sees moderate

467
00:25:36,640 --> 00:25:39,440
Speaker 1: earnings risk on the horizon, which is hewing the balance

468
00:25:39,520 --> 00:25:43,679
Speaker 1: away from equities. Normally, you'd have equity returns expected to

469
00:25:43,720 --> 00:25:45,920
Speaker 1: be much higher than bonds. The bonds have really been

470
00:25:46,160 --> 00:25:48,520
Speaker 1: rerated here. The Fed is going to need to be

471
00:25:48,560 --> 00:25:51,480
Speaker 1: careful not to torpedo the economy, but they know that

472
00:25:52,000 --> 00:25:54,880
Speaker 1: and PGMs. Robert Tipps says he expects the bond market

473
00:25:54,960 --> 00:25:58,760
Speaker 1: to continue performing well as the FED raises rates in Asia. Overnight,

474
00:25:58,800 --> 00:26:01,960
Speaker 1: Karen Hong Kong's Hanks, saying Index game more than three percent.

475
00:26:02,200 --> 00:26:05,600
Speaker 1: That's after local media reported Hong Kong is considering scrapping

476
00:26:05,600 --> 00:26:09,840
Speaker 1: outdoor mask mandates and easing COVID testing requirements. Well, Nathan

477
00:26:09,880 --> 00:26:11,960
Speaker 1: back here in the US, Twitter and Tesla are back

478
00:26:12,000 --> 00:26:15,040
Speaker 1: in the news. Bankers for Elon Musk are considering providing

479
00:26:15,040 --> 00:26:18,720
Speaker 1: the billionaire with new margin loans. Bloomberry Steve Rappaport trains

480
00:26:18,840 --> 00:26:20,760
Speaker 1: US Live with more in that story. Good Morning, Steve,

481
00:26:20,840 --> 00:26:23,840
Speaker 1: Good morning Karen, and Nathan. Margin loans backed by Tesla

482
00:26:23,880 --> 00:26:26,120
Speaker 1: stock is one option for banks to ease the high

483
00:26:26,160 --> 00:26:28,880
Speaker 1: interest debt that Twitter took on when Musk acquired the company.

484
00:26:29,040 --> 00:26:32,679
Speaker 1: Dwindling credit markets combined with Musk's bumpy start as Twitter CEO,

485
00:26:32,840 --> 00:26:35,639
Speaker 1: forced bankers to cover the thirteen billion dollar debt with

486
00:26:35,680 --> 00:26:38,760
Speaker 1: their own cash, sources tell Bloomberg. Talks are focused on

487
00:26:38,800 --> 00:26:41,560
Speaker 1: ways to replace the three billion dollars of unsecured debt

488
00:26:41,760 --> 00:26:44,720
Speaker 1: on which Twitter pays nearly twelve percent interest. Live in

489
00:26:44,800 --> 00:26:48,119
Speaker 1: New York I'm Steve Rappaport Bloomberg day Break. Okay, Steve. Thanks.

490
00:26:48,119 --> 00:26:51,359
Speaker 1: Another corporate note this morning, former Farness president and chief

491
00:26:51,400 --> 00:26:55,040
Speaker 1: operating officer Remesh Sunny Balwani has been sentenced to thirteen

492
00:26:55,119 --> 00:26:58,439
Speaker 1: years in prison after the company's founder Elizabeth Holmes was

493
00:26:58,480 --> 00:27:02,000
Speaker 1: sentenced to eleven years for well Nathan Turning to another

494
00:27:02,040 --> 00:27:06,120
Speaker 1: disgraced venture, ft X founder Sam Bankman Freed maybe appearing

495
00:27:06,119 --> 00:27:09,840
Speaker 1: on Capitol Hill next week. Republican Arkansas Representative french Hill

496
00:27:09,920 --> 00:27:13,080
Speaker 1: says having Sam Bankman Freed speak with lawmakers is a

497
00:27:13,119 --> 00:27:17,359
Speaker 1: priority for the next Congress. Patrick McKendry, the ranking Republican,

498
00:27:17,440 --> 00:27:20,359
Speaker 1: and Maxine Waters, the chair of the committee. They want

499
00:27:20,440 --> 00:27:23,760
Speaker 1: him here personally. If he's got time to interview a

500
00:27:23,920 --> 00:27:27,080
Speaker 1: deal book with Andrew Ross Sorkin and make all these

501
00:27:27,119 --> 00:27:31,320
Speaker 1: Twitter appearances, he can appear before our committee. Congressman french

502
00:27:31,400 --> 00:27:34,040
Speaker 1: Hill may the comments on Bloomberg's balance of power catch

503
00:27:34,080 --> 00:27:36,720
Speaker 1: the program weekdays at noon and Wall Street time on

504
00:27:36,800 --> 00:27:39,159
Speaker 1: Bloomberg Radio. And that's the five things you need to

505
00:27:39,200 --> 00:27:42,960
Speaker 1: know to start your day, brought to you by Interactive Brokers.

506
00:27:43,000 --> 00:27:45,280
Speaker 1: And again, futures are higher this morning with S and P.

507
00:27:45,480 --> 00:27:47,960
Speaker 1: Futures up about seven points, up about two tens of

508
00:27:48,040 --> 00:27:51,359
Speaker 1: upper cent DWAL future is little change and NASDAIC futures

509
00:27:51,400 --> 00:27:53,720
Speaker 1: up to tens of upper cent or twenty four points.

510
00:27:53,960 --> 00:27:57,040
Speaker 1: Say ahead, your latest local headlines plus a check of sports,

511
00:27:57,480 --> 00:28:04,320
Speaker 1: and this is Bloomberg. All right, Karen, thank you, six

512
00:28:04,359 --> 00:28:06,199
Speaker 1: thirty one on Wall Street. Let's bring in Michael bar

513
00:28:06,320 --> 00:28:07,720
Speaker 1: with a look at what's going on in New York

514
00:28:07,760 --> 00:28:10,600
Speaker 1: and around the world. One skin, Good morning, Michael, Good morning, Nathan.

515
00:28:10,600 --> 00:28:13,800
Speaker 1: New York Governor Kathy Oakle says complacency is our enemy

516
00:28:13,840 --> 00:28:16,280
Speaker 1: when it comes to fighting COVID, the flu and r

517
00:28:16,520 --> 00:28:18,919
Speaker 1: s V. And step up this time, step up in

518
00:28:18,960 --> 00:28:21,399
Speaker 1: December and January, get us through February, get us through

519
00:28:21,400 --> 00:28:24,000
Speaker 1: the worst times by just if you're gonna see somebody

520
00:28:24,320 --> 00:28:28,280
Speaker 1: that's in a vulnerable situation, just get tested. Governor Hokel

521
00:28:28,400 --> 00:28:31,119
Speaker 1: says New York will be ready with testing and vaccines.

522
00:28:31,480 --> 00:28:34,359
Speaker 1: New Jersey Governor Phil Murphy is recovering at home after

523
00:28:34,400 --> 00:28:38,160
Speaker 1: his office says he had minor surgery yesterday. The governor's

524
00:28:38,160 --> 00:28:40,560
Speaker 1: office would not say what the procedure was, except that

525
00:28:40,600 --> 00:28:43,560
Speaker 1: the surgery was not related to a kancerous tumor he

526
00:28:43,640 --> 00:28:47,360
Speaker 1: had removed in Mayor Eric Adams says the system to

527
00:28:47,400 --> 00:28:50,480
Speaker 1: provide affordable housing is broken, not just in New York

528
00:28:50,520 --> 00:28:53,720
Speaker 1: City but all over. Adam spoke at a faith based

529
00:28:53,720 --> 00:28:56,240
Speaker 1: summit in New York and all we do is kick

530
00:28:56,280 --> 00:28:59,480
Speaker 1: the can down the road. We know at the beginning

531
00:28:59,480 --> 00:29:03,760
Speaker 1: of the year we're going to fail a large number

532
00:29:03,760 --> 00:29:07,440
Speaker 1: of people, and they're primarily black and brown and immigrants,

533
00:29:07,440 --> 00:29:10,680
Speaker 1: and we know it. Frustrated, Adams says, we spend billions

534
00:29:10,680 --> 00:29:14,560
Speaker 1: of taxpayer dollars for the broken issues we created. Months

535
00:29:14,560 --> 00:29:18,480
Speaker 1: after the FBI sees records marked classified from Mara Lago,

536
00:29:18,680 --> 00:29:22,160
Speaker 1: more sensitive documents are surfacing, this time in the storage

537
00:29:22,240 --> 00:29:25,000
Speaker 1: unit said to be used by former President Trump in Florida.

538
00:29:25,360 --> 00:29:29,080
Speaker 1: Loyola law professor Lori Levinson it is clear that the

539
00:29:29,160 --> 00:29:32,800
Speaker 1: judges have gone to Trump and his lawyers and said

540
00:29:33,160 --> 00:29:38,080
Speaker 1: searching again, look harder because National Archives does believe that

541
00:29:38,160 --> 00:29:41,720
Speaker 1: there are more documents out there. Searches were reportedly conducted

542
00:29:41,760 --> 00:29:46,200
Speaker 1: around Thanksgiving. The House Ethics Committee is investigating Democratic Representative

543
00:29:46,280 --> 00:29:50,680
Speaker 1: Alexandria Ocassio Cortes. They did not say, though, for what alleged,

544
00:29:50,800 --> 00:29:55,040
Speaker 1: if any, violations of congressional rules, Global Needs twenty four

545
00:29:55,080 --> 00:29:57,880
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered

546
00:29:57,920 --> 00:30:01,640
Speaker 1: by more than journalists analyists more than a hundred twenty countries.

547
00:30:01,880 --> 00:30:09,320
Speaker 1: Michael Barr, this is Bloomberg Natham. Thanks Michael, six thirty

548
00:30:09,360 --> 00:30:11,239
Speaker 1: three on Wall Street time for the Bloomberg Sports up.

549
00:30:11,240 --> 00:30:13,160
Speaker 1: They brought to you by Trice State Out of Here's

550
00:30:13,240 --> 00:30:16,400
Speaker 1: John Stapshot. All right, Nathan Yankee. Fans obviously relieved with

551
00:30:16,440 --> 00:30:18,360
Speaker 1: the news that Aaron Judge staying in New York, and

552
00:30:18,360 --> 00:30:20,400
Speaker 1: now they want to know who might be Yanks add

553
00:30:20,600 --> 00:30:22,480
Speaker 1: they need a left fielder where it is that might

554
00:30:22,480 --> 00:30:25,640
Speaker 1: be the Pirates Brian Reynolds or a return of Andrew Bennintinni.

555
00:30:25,680 --> 00:30:28,520
Speaker 1: They like that a starting pitcher. Carlos Radon's name has

556
00:30:28,560 --> 00:30:30,400
Speaker 1: been mentioned, but he's looking for a lot six years,

557
00:30:30,520 --> 00:30:34,280
Speaker 1: hundred eighty million. The money being thrown around his staggering

558
00:30:34,400 --> 00:30:37,160
Speaker 1: Much court was made of Judge being the poster boyd

559
00:30:37,240 --> 00:30:40,320
Speaker 1: for betting on yourself by turning the Yanks down last spring.

560
00:30:40,360 --> 00:30:42,680
Speaker 1: He ended up with almost a hundred fifty million dollars more.

561
00:30:42,680 --> 00:30:45,800
Speaker 1: How about Xandrew Bogart's Red Softs last spring up for him?

562
00:30:45,840 --> 00:30:49,000
Speaker 1: Six years, hundred twenty million. Like Judge, he passed had

563
00:30:49,040 --> 00:30:51,959
Speaker 1: a strong season. Bogart signed last night with San Diego

564
00:30:52,120 --> 00:30:55,320
Speaker 1: eleven years, two hundred and eighty million. The Red Sox

565
00:30:55,360 --> 00:30:58,600
Speaker 1: lost Bogarts, but they signed veteran reliever Kenny Jansen and

566
00:30:58,920 --> 00:31:03,080
Speaker 1: Japanese outfielder Massataka Yoshida. The Mets signed veteran picture Jose

567
00:31:03,280 --> 00:31:06,560
Speaker 1: Quintana for two years. Last season, Quintana had the lowest

568
00:31:06,600 --> 00:31:09,280
Speaker 1: home run aloud rate in the National League. Next and

569
00:31:09,360 --> 00:31:11,760
Speaker 1: NET both one and all mix over Atlanta one thirteen

570
00:31:11,800 --> 00:31:14,080
Speaker 1: to eighty nine the ELBA Hawks to thirty eight percent

571
00:31:14,120 --> 00:31:17,880
Speaker 1: shooting for Julius Randall thirty four points, seventeen rebounds. Net's

572
00:31:17,880 --> 00:31:21,120
Speaker 1: got thirty three from Kyrie Irving, Kevin Der Anthony Beach

573
00:31:21,160 --> 00:31:24,920
Speaker 1: Charlotte to one sixteen. The Rangers in Vegas won one

574
00:31:24,960 --> 00:31:28,120
Speaker 1: third period when the Rangers scored four times three in

575
00:31:28,160 --> 00:31:32,040
Speaker 1: a span of under two minutes. They won five to one. St.

576
00:31:32,120 --> 00:31:35,400
Speaker 1: John's beat to Paul eighties six sixty seven Yukon one

577
00:31:35,440 --> 00:31:37,719
Speaker 1: at Florida. By twenty one, the Huskies are ten down.

578
00:31:37,800 --> 00:31:41,520
Speaker 1: Oh John Stashia War Bloomberg Sports Nathan Think John stash

579
00:31:41,560 --> 00:31:44,120
Speaker 1: Our Bloomberg Sports was brought to you by Autie. Don't

580
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581
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582
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583
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Speaker 1: Offers dot com for more information. It is now six

584
00:31:57,360 --> 00:32:02,640
Speaker 1: thirty five on Wall Street. Bloomberg Radio is on the

585
00:32:02,640 --> 00:32:05,640
Speaker 1: air from San Francisco to New York, London to Hong Kong.

586
00:32:06,080 --> 00:32:08,280
Speaker 1: Let's check in with our global news team for some

587
00:32:08,360 --> 00:32:10,760
Speaker 1: of the top stories heard on our three hundred affiliate

588
00:32:10,840 --> 00:32:16,760
Speaker 1: radio stations around the world. I'm Courtney Donahoe on kt

589
00:32:16,920 --> 00:32:19,800
Speaker 1: r H in Houston. Exon is giving its staff big

590
00:32:19,840 --> 00:32:23,560
Speaker 1: pay bumps, says profit Source. I'm Gina Servetti and for

591
00:32:23,680 --> 00:32:26,840
Speaker 1: KCBS in San Francisco. I'm reporting that if you think

592
00:32:26,840 --> 00:32:28,880
Speaker 1: you're going to throw a New Year's Eve party at

593
00:32:28,920 --> 00:32:33,240
Speaker 1: an Airbnb, maybe not. I'm Jeff Bullinger and on Cogo

594
00:32:33,400 --> 00:32:35,920
Speaker 1: in San Diego. I'll be talking about the big tech

595
00:32:35,960 --> 00:32:39,800
Speaker 1: companies that are building an enterprise cloud system for the Pentagon.

596
00:32:40,200 --> 00:32:42,840
Speaker 1: I'm Kimberly Adams are on KYW in Philadelphia. I'll be

597
00:32:42,920 --> 00:32:45,920
Speaker 1: reporting on thousands of New York Times employees preparing the

598
00:32:45,960 --> 00:32:48,920
Speaker 1: Stagia one Day walkout. I'm Caroline Head and bloom bagh

599
00:32:48,960 --> 00:32:51,320
Speaker 1: d A B. Dam Landon. We've been reporting on Van

600
00:32:51,400 --> 00:32:54,880
Speaker 1: God pulling out of the world's largest climate finance alliance

601
00:32:55,080 --> 00:32:57,600
Speaker 1: that was spearheaded by the former Bank of England Governor

602
00:32:57,640 --> 00:33:01,160
Speaker 1: Mart Conny. I'm at Tory on w w J in Detroit.

603
00:33:01,200 --> 00:33:04,320
Speaker 1: I'm reporting youth car prices across the country fell again

604
00:33:04,400 --> 00:33:07,120
Speaker 1: in November. And those are some of the stories our

605
00:33:07,160 --> 00:33:10,360
Speaker 1: twenty hundred Bloomberg journalists and analysts are working on this

606
00:33:10,440 --> 00:33:13,120
Speaker 1: morning around the world. Now let's go to the Green

607
00:33:13,240 --> 00:33:17,120
Speaker 1: Business Report, and here's Bloomberg's Jeff Bellinger. This is the

608
00:33:17,160 --> 00:33:21,560
Speaker 1: Bloomberg Green Report. Hopes for wider adoption of electric vehicles

609
00:33:21,560 --> 00:33:24,680
Speaker 1: have been fueled in part by declines in battery prices.

610
00:33:24,960 --> 00:33:27,160
Speaker 1: It was a trend that went on for a decade,

611
00:33:27,200 --> 00:33:30,240
Speaker 1: but at ground to a halt this year. Bloomberg Neft's

612
00:33:30,240 --> 00:33:33,480
Speaker 1: annual Lithium ion battery price survey found there was a

613
00:33:33,560 --> 00:33:37,320
Speaker 1: seven percent increase in average pack prices and twenty two

614
00:33:37,720 --> 00:33:40,240
Speaker 1: It is the first increase in the history of the survey.

615
00:33:40,680 --> 00:33:43,360
Speaker 1: Several things are driving the price hikes and The biggest

616
00:33:43,400 --> 00:33:46,760
Speaker 1: factor is rising material costs. The prices of nickel and

617
00:33:46,840 --> 00:33:49,880
Speaker 1: cobalt have eased recently, but they are still higher than

618
00:33:49,920 --> 00:33:53,000
Speaker 1: they were a year ago. Lithium prices may be about

619
00:33:53,000 --> 00:33:55,360
Speaker 1: to turn, but they are still higher than they've been

620
00:33:55,400 --> 00:33:59,280
Speaker 1: in recent years. Strong battery demand is another issue, because

621
00:33:59,320 --> 00:34:01,880
Speaker 1: there's a lad again how fast new supply can be

622
00:34:01,960 --> 00:34:06,360
Speaker 1: brought online. Bloomberg Neft's energy storage team expects prices to

623
00:34:06,480 --> 00:34:10,160
Speaker 1: remain elevated through next year, then begin to fall in

624
00:34:11,000 --> 00:34:15,239
Speaker 1: four is more raw material supply comes online. Jeff Blinger,

625
00:34:15,360 --> 00:34:18,400
Speaker 1: Bloomberg Radio. All right, Jeff, thank you. On top of

626
00:34:18,400 --> 00:34:21,520
Speaker 1: the big rays coming for x On Mobile employees after

627
00:34:21,560 --> 00:34:24,640
Speaker 1: the company's record profit. This red headline just across the

628
00:34:24,640 --> 00:34:27,960
Speaker 1: Bloomberg terminal. Regarding the oil giant, it's expanding its share

629
00:34:28,000 --> 00:34:32,600
Speaker 1: buy back program to fifty billion dollars through. That's compared

630
00:34:32,640 --> 00:34:36,000
Speaker 1: to an earlier plans to spend thirty billion dollars to

631
00:34:36,120 --> 00:34:39,680
Speaker 1: buy back shares through next year. Right now, Exxon shares

632
00:34:39,719 --> 00:34:43,400
Speaker 1: are higher by one point four percent in early trading.

633
00:34:43,800 --> 00:34:47,000
Speaker 1: Futures starting to gain some ground this morning. SMP futures

634
00:34:47,000 --> 00:34:49,719
Speaker 1: are up eight points. Stown futures up thirty seven and

635
00:34:49,840 --> 00:34:53,680
Speaker 1: NASDAC futures are higher by twenty seven points. Tenure treasuries

636
00:34:53,719 --> 00:34:57,400
Speaker 1: down six thirty seconds, the yield three point four four percent.

637
00:34:57,600 --> 00:35:04,839
Speaker 1: This is Bloomberg Markets headlines and breaking news twenty four

638
00:35:04,880 --> 00:35:07,920
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business

639
00:35:07,920 --> 00:35:17,520
Speaker 1: apt and at Bloomberg Quicktake. This is a Bloomberg Business clash,

640
00:35:17,960 --> 00:35:20,640
Speaker 1: and I'm Karen Moscow in US dot index future is

641
00:35:20,680 --> 00:35:22,759
Speaker 1: showing a bit more strength this morning. We go to

642
00:35:22,800 --> 00:35:25,239
Speaker 1: the First Word breaking news desk for today's morning call

643
00:35:25,320 --> 00:35:28,760
Speaker 1: in Here's film Malodey Bill, good morning, and good morning Karen.

644
00:35:28,840 --> 00:35:30,799
Speaker 1: Modest games in the US futures right now with death

645
00:35:30,840 --> 00:35:33,560
Speaker 1: futures up thirty seven points, sesapes gain eight and as

646
00:35:33,640 --> 00:35:37,560
Speaker 1: the futures are higher by the US ten yield at

647
00:35:37,560 --> 00:35:40,040
Speaker 1: three point four or four percent, Gold is down three,

648
00:35:40,040 --> 00:35:43,400
Speaker 1: Oil is in the green, and bitcoin is trading little changed.

649
00:35:43,719 --> 00:35:46,520
Speaker 1: Hong Kong jumped three point four percent overnight on more

650
00:35:46,640 --> 00:35:49,480
Speaker 1: reopening signs, while your PR markets are trading in the

651
00:35:49,520 --> 00:35:52,000
Speaker 1: red this morning. Back in the US on the economic

652
00:35:52,000 --> 00:35:55,040
Speaker 1: Frinday thirty initial jobs claims and after the bellis night

653
00:35:55,080 --> 00:35:58,120
Speaker 1: game stop sales did miss estimates and a deal. News

654
00:35:58,239 --> 00:36:00,440
Speaker 1: people familiar said that Uni lever is to weighing the

655
00:36:00,440 --> 00:36:02,960
Speaker 1: sale of it's US ice cream brands that may be

656
00:36:03,080 --> 00:36:05,600
Speaker 1: valued at up to one point may be valued at

657
00:36:05,680 --> 00:36:08,960
Speaker 1: up to three billion. In other news, Excellent expanded Sherry

658
00:36:09,000 --> 00:36:13,080
Speaker 1: purchase programs up to fifty billion through four and wrapping

659
00:36:13,120 --> 00:36:15,600
Speaker 1: things up. Avalon Bay was cutting neutral over at Goldman

660
00:36:15,640 --> 00:36:19,400
Speaker 1: Sachs salesforce continued ship Robert Batt and Vulcan Materials was

661
00:36:19,480 --> 00:36:22,880
Speaker 1: raised to overweight over at JP. Morgan Live from the

662
00:36:22,880 --> 00:36:25,759
Speaker 1: First Breaking News Descomb, Bill Maloney, Karen Rank, Bill, thanks

663
00:36:25,760 --> 00:36:27,799
Speaker 1: to you here live breaking news. Over your Bloomberg type

664
00:36:27,800 --> 00:36:30,120
Speaker 1: squawk on your termin I'll scu you a w K

665
00:36:30,280 --> 00:36:32,680
Speaker 1: and that's a Bloomberg business flash. Now here's Michael Barr

666
00:36:32,800 --> 00:36:35,320
Speaker 1: with Moore on what's going on around the world. Michael, Karen,

667
00:36:35,400 --> 00:36:37,080
Speaker 1: thank you very much. The House is set to take

668
00:36:37,160 --> 00:36:40,480
Speaker 1: a final vote on protections for same sex marriages. Today's

669
00:36:40,560 --> 00:36:44,200
Speaker 1: vote will send the legislation to President Joe Biden. Members

670
00:36:44,239 --> 00:36:48,359
Speaker 1: of former President Donald Trump's team notified the FBI they

671
00:36:48,360 --> 00:36:52,200
Speaker 1: had found additional documents marked as classified in a Florida

672
00:36:52,320 --> 00:36:55,479
Speaker 1: storage facility near Palm Beach. The chair of the House

673
00:36:55,480 --> 00:36:59,160
Speaker 1: committee investigating last year's January sixth attack on the Capitol

674
00:36:59,400 --> 00:37:02,600
Speaker 1: says the Olds report will be released December twenty one.

675
00:37:02,840 --> 00:37:05,800
Speaker 1: In the NBA, the Nets, Next and Celtics all winners,

676
00:37:05,880 --> 00:37:08,840
Speaker 1: the Wizards and Warriors lost in the NHL, the Rangers,

677
00:37:08,880 --> 00:37:12,320
Speaker 1: Bruins and Capitals all one Global news twenty four hours

678
00:37:12,320 --> 00:37:15,799
Speaker 1: a day on air and on Bloomberg Quicktake, powered by

679
00:37:15,840 --> 00:37:18,480
Speaker 1: more than twenty seven hundred journalists and analysts more than

680
00:37:18,520 --> 00:37:21,640
Speaker 1: a hundred twenty countries. I'm Michael Bar. This is Bloomberg.

681
00:37:21,719 --> 00:37:24,160
Speaker 1: Karen all right, Michael Barr, thank you at six forty

682
00:37:24,160 --> 00:37:26,040
Speaker 1: two on Wall Street. And let's turn to news and

683
00:37:26,120 --> 00:37:28,719
Speaker 1: science and technology now with a Bloomberg and j I

684
00:37:28,840 --> 00:37:31,319
Speaker 1: T STEM Report. It has brought to you by New

685
00:37:31,400 --> 00:37:34,680
Speaker 1: Jersey Institute of Technology, and j i T offers New

686
00:37:34,760 --> 00:37:39,400
Speaker 1: Jersey's first undergraduate degree in fintech, tech driven finance focused

687
00:37:39,440 --> 00:37:41,960
Speaker 1: What will you make at n j I T. Learn

688
00:37:42,000 --> 00:37:43,759
Speaker 1: more at n j I T dot E d U

689
00:37:43,920 --> 00:37:48,040
Speaker 1: slash fintech and now here's just making news and science, technology, engineering,

690
00:37:48,040 --> 00:37:50,760
Speaker 1: and math. Several U S Senators are willing to subpoena

691
00:37:50,880 --> 00:37:53,439
Speaker 1: f t X founder Sam Bankman Freed if he does

692
00:37:53,520 --> 00:37:57,640
Speaker 1: not choose to voluntarily answer questions. Senator Shared Brown and

693
00:37:57,680 --> 00:37:59,920
Speaker 1: Patrick Toomey have asked Bank been free to test a

694
00:38:00,040 --> 00:38:03,279
Speaker 1: five before hearing on cryptocurrency. Brown wrote that Bank ben

695
00:38:03,320 --> 00:38:05,560
Speaker 1: Freed must answer for the failures of f t X

696
00:38:05,640 --> 00:38:09,880
Speaker 1: and alometer research. The Biden administration is taking sides against

697
00:38:09,880 --> 00:38:13,160
Speaker 1: Google and what's seen as a consequential case involving social

698
00:38:13,160 --> 00:38:16,520
Speaker 1: media and a Supreme Court filing. The Justice Department argued

699
00:38:16,719 --> 00:38:20,520
Speaker 1: that social media website should be held liable for promoting

700
00:38:20,600 --> 00:38:24,080
Speaker 1: harmful speech in some cases. The case involves a family

701
00:38:24,080 --> 00:38:27,920
Speaker 1: wanting to sue Google over a terrorist attack. And Bloomberg

702
00:38:27,920 --> 00:38:30,920
Speaker 1: News has learned that the Netherlands is planning new controls

703
00:38:30,920 --> 00:38:33,919
Speaker 1: on exports of chip making equipment to China that could

704
00:38:33,920 --> 00:38:37,600
Speaker 1: align Dutch trade rules with US efforts to restrict Beijing's

705
00:38:37,600 --> 00:38:40,879
Speaker 1: access to high end technology. Washington has been pushing its

706
00:38:40,880 --> 00:38:43,680
Speaker 1: allies to join efforts to cut off China. That's the

707
00:38:43,680 --> 00:38:47,040
Speaker 1: Bloomberg and j I t Stem report. Nathan all right, Karen,

708
00:38:47,040 --> 00:38:49,319
Speaker 1: thank you for coming up to sixty four on Wall Street,

709
00:38:49,360 --> 00:38:50,840
Speaker 1: and it is time to check what's going on in

710
00:38:50,920 --> 00:38:52,800
Speaker 1: d C. Some of the top stories in our nation's

711
00:38:52,800 --> 00:38:55,800
Speaker 1: capital include Congress poking China with a boost of Taiwan

712
00:38:55,920 --> 00:38:59,600
Speaker 1: and a chipspan in the must pass defense bill, President

713
00:38:59,640 --> 00:39:02,360
Speaker 1: Biden to announce thirty six billion dollars for an ailing

714
00:39:02,560 --> 00:39:07,320
Speaker 1: Teamsters pension fund, and Democrats demanding a plan from Elon

715
00:39:07,400 --> 00:39:10,799
Speaker 1: Musk to combat hate speech on Twitter. Let's get more

716
00:39:10,800 --> 00:39:12,799
Speaker 1: on some of these stories. Now. We're joined live by

717
00:39:12,840 --> 00:39:16,640
Speaker 1: Bloomberg Government congressional reporter Jack Fitzpatrick, who's been watching not

718
00:39:16,760 --> 00:39:19,359
Speaker 1: just the debate around the Defense bill, but of course

719
00:39:19,360 --> 00:39:23,960
Speaker 1: a must pass government funding bill before the next shutdown deadline. Jack,

720
00:39:24,000 --> 00:39:26,440
Speaker 1: good morning, So what are these provisions in the defense

721
00:39:26,440 --> 00:39:30,320
Speaker 1: bill they could upset China. Well, they're focused on Taiwan.

722
00:39:30,800 --> 00:39:33,960
Speaker 1: One of them is that it authorizes, or would authorize,

723
00:39:33,960 --> 00:39:38,359
Speaker 1: if enacted, ten billion dollars in weapons sales to Taiwan. UH.

724
00:39:38,360 --> 00:39:42,000
Speaker 1: There's also another measure that generally would restrict the use

725
00:39:42,120 --> 00:39:46,920
Speaker 1: of semiconductor chips made by some Chinese companies in items

726
00:39:47,000 --> 00:39:50,279
Speaker 1: used by the military. UH. Some of these provisions were

727
00:39:50,320 --> 00:39:53,759
Speaker 1: scaled back a bit. There was an earlier proposal two

728
00:39:53,800 --> 00:39:57,360
Speaker 1: more broadly stop the use of those chips from Chinese

729
00:39:57,360 --> 00:40:02,800
Speaker 1: companies by all government contractors that would be much more aggressive,

730
00:40:02,840 --> 00:40:05,399
Speaker 1: and there was some pushback to that. The Biden administration

731
00:40:05,520 --> 00:40:10,160
Speaker 1: also succeeded in getting lawmakers to take out language that

732
00:40:10,239 --> 00:40:14,440
Speaker 1: would designate Taiwan a major non NATO ally, which is

733
00:40:14,520 --> 00:40:16,920
Speaker 1: essentially already the U s S stance on it. But

734
00:40:16,960 --> 00:40:20,760
Speaker 1: there was quite a bit of controversy with with China

735
00:40:20,920 --> 00:40:24,239
Speaker 1: and the Biden administration saying maybe adding that language would

736
00:40:24,239 --> 00:40:27,320
Speaker 1: go too far, so they've scaled it back in some ways.

737
00:40:27,360 --> 00:40:32,320
Speaker 1: But again, the authorization for weapons sales and some limitations

738
00:40:32,360 --> 00:40:35,520
Speaker 1: on purchases of chips by Chinese companies is definitely a

739
00:40:35,560 --> 00:40:38,279
Speaker 1: significant thing in this bill. Yeah, interesting to see some

740
00:40:38,320 --> 00:40:40,719
Speaker 1: of the back and forth going on, given that the

741
00:40:40,719 --> 00:40:43,640
Speaker 1: president has been at least trying to keep US China

742
00:40:43,719 --> 00:40:47,640
Speaker 1: relations from getting even worse after that meeting last month

743
00:40:47,719 --> 00:40:50,600
Speaker 1: with Chinese President She Now, Jack, I know you've been

744
00:40:50,600 --> 00:40:53,799
Speaker 1: following very closely what's going on with government funding. There's

745
00:40:53,840 --> 00:40:56,520
Speaker 1: a shutdown deadline coming up in what a little more

746
00:40:56,560 --> 00:40:59,960
Speaker 1: than a week. What's the latest there, Yes, the deadline

747
00:41:00,120 --> 00:41:03,719
Speaker 1: is the sixteenth, that's next Friday. Uh. The latest I've

748
00:41:03,719 --> 00:41:06,640
Speaker 1: heard is that Democrats, Uh, this seems to be a

749
00:41:06,719 --> 00:41:10,200
Speaker 1: joint effort between the House and Senate Democrats are are

750
00:41:10,239 --> 00:41:14,680
Speaker 1: going to put out their own omnibus UH spending package

751
00:41:14,719 --> 00:41:18,320
Speaker 1: that they see as more or less a bipartisan offer,

752
00:41:18,400 --> 00:41:22,160
Speaker 1: even though there's still no bipartisan agreement no Republicans sign off.

753
00:41:22,400 --> 00:41:24,960
Speaker 1: So they're going to put out on Monday, the Monday

754
00:41:25,000 --> 00:41:29,120
Speaker 1: before a Friday deadline, UH, their own omnibus package that

755
00:41:29,239 --> 00:41:33,319
Speaker 1: they feel like potentially could pass both chambers if there's

756
00:41:33,400 --> 00:41:36,040
Speaker 1: no sign off from Republican leadership. This would be an

757
00:41:36,040 --> 00:41:39,400
Speaker 1: extremely long shot, and it's probably more reflective of the

758
00:41:39,440 --> 00:41:42,360
Speaker 1: fact that there's a bit of a standoff just on

759
00:41:42,400 --> 00:41:45,520
Speaker 1: the top lines. They haven't decided UH and agreed in

760
00:41:45,520 --> 00:41:48,680
Speaker 1: a bipartisan way on how much money to spend on

761
00:41:48,840 --> 00:41:52,600
Speaker 1: defense versus domestic programs UH, And until they do that,

762
00:41:52,640 --> 00:41:56,120
Speaker 1: they can't really write a real bipartisan bill. But this

763
00:41:56,239 --> 00:41:59,480
Speaker 1: is at least a move by Democrats to just kind

764
00:41:59,480 --> 00:42:02,560
Speaker 1: of shake the branches and see what falls out and

765
00:42:02,719 --> 00:42:06,480
Speaker 1: hope that it speeds along further negotiations. All right, let's

766
00:42:06,520 --> 00:42:09,160
Speaker 1: turn to the White House. Now, the self described most

767
00:42:09,239 --> 00:42:12,880
Speaker 1: pro union president ever is putting a focus on union

768
00:42:12,920 --> 00:42:17,120
Speaker 1: pensions today. Yes, he is going to hold an announcement

769
00:42:17,160 --> 00:42:20,840
Speaker 1: today on a thirty six billion dollar bailout for the

770
00:42:20,960 --> 00:42:25,640
Speaker 1: Central States Pension Fund UH that largely supports retirees and

771
00:42:25,680 --> 00:42:29,600
Speaker 1: workers from the Teamsters. Uh This is obviously notable. After

772
00:42:30,200 --> 00:42:35,120
Speaker 1: uh there was some disappointment among some labor focused supporters

773
00:42:35,239 --> 00:42:39,600
Speaker 1: of the president on the way the rail strike or

774
00:42:39,640 --> 00:42:42,799
Speaker 1: the way to avoid a rail strike has has shaken out,

775
00:42:42,840 --> 00:42:47,000
Speaker 1: with the President pushing for Congress to impose an agreement

776
00:42:47,320 --> 00:42:52,279
Speaker 1: that four of the thirteen rail freight rail unions did

777
00:42:52,280 --> 00:42:55,080
Speaker 1: not support. Uh so's He's going to have the president

778
00:42:55,080 --> 00:42:57,000
Speaker 1: of the Teamsters, the president of the a f l

779
00:42:57,080 --> 00:43:00,600
Speaker 1: c I O Labor Secretary at this event. There does

780
00:43:00,600 --> 00:43:03,520
Speaker 1: seem to be a political angle along this, with Biden

781
00:43:03,640 --> 00:43:07,719
Speaker 1: sort of trying to re up his or re emphasize

782
00:43:07,800 --> 00:43:11,839
Speaker 1: his general support for unions. And finally, Jack, in our

783
00:43:11,920 --> 00:43:15,319
Speaker 1: last minute here, we just got word this hour of

784
00:43:15,600 --> 00:43:19,360
Speaker 1: more pressure from Capitol Hill on the new CEO and

785
00:43:19,400 --> 00:43:23,719
Speaker 1: owner of Twitter, Elon Musk, tell us more about that. Yeah,

786
00:43:23,760 --> 00:43:27,560
Speaker 1: Adam Schiff and Mark Takano, to Democratic members of the House,

787
00:43:27,600 --> 00:43:31,440
Speaker 1: sent Elon Musk a letter asking him about what they

788
00:43:31,480 --> 00:43:35,359
Speaker 1: see as a sharp rise in hate speech on Twitter. UH.

789
00:43:35,440 --> 00:43:39,000
Speaker 1: They referenced a study by the Center for Countering Digital Hate,

790
00:43:39,040 --> 00:43:42,320
Speaker 1: saying there's been an increase in anti Semitic and racial

791
00:43:42,320 --> 00:43:46,719
Speaker 1: slurs since Musk became ci A CEO. Uh so, they

792
00:43:46,880 --> 00:43:50,080
Speaker 1: they've they've asked him to respond with an outline on

793
00:43:50,440 --> 00:43:54,080
Speaker 1: what he's doing about that. They also specifically flagged anti

794
00:43:54,360 --> 00:43:58,960
Speaker 1: l g B t Q uh posts on Twitter. Uh So,

795
00:43:59,080 --> 00:44:02,319
Speaker 1: definitely a refle action of concern at least among Democrats

796
00:44:02,440 --> 00:44:06,920
Speaker 1: on hate speech on Twitter. Alright, Bloomberg Government Congressional reporter

797
00:44:07,000 --> 00:44:09,680
Speaker 1: Jack Fitzpatrick keeping us on top of all that's happening

798
00:44:10,040 --> 00:44:13,080
Speaker 1: in Washington. D c n O will be looking very

799
00:44:13,120 --> 00:44:15,800
Speaker 1: closely for further developments as well on the f t

800
00:44:16,000 --> 00:44:18,080
Speaker 1: X situation, whether Sam Bank Ben Freed is going to

801
00:44:18,120 --> 00:44:21,040
Speaker 1: be testifying on Capitol Hill next week, So looking forward

802
00:44:21,280 --> 00:44:23,719
Speaker 1: to getting the update from you on that as well.

803
00:44:23,800 --> 00:44:26,799
Speaker 1: You can read much more on Bloomberg dot com or

804
00:44:26,880 --> 00:44:29,640
Speaker 1: on the Bloomberg terminal. Follow all the latest on Bloomberg

805
00:44:29,760 --> 00:44:34,920
Speaker 1: Radio in Washington. Bloomberg and one oh five point seven fm,

806
00:44:35,120 --> 00:44:38,879
Speaker 1: h D two S ANDP Futures right now gaining some ground.

807
00:44:38,880 --> 00:44:41,720
Speaker 1: They're up eleven points now. Dal Future is up sixty six.

808
00:44:41,800 --> 00:44:44,520
Speaker 1: That's a gain of two tenths percent, and the NASDAC

809
00:44:44,560 --> 00:44:47,480
Speaker 1: futures are higher by thirty four points. Ten. Your treasury

810
00:44:47,520 --> 00:44:50,160
Speaker 1: is down seven thirty seconds, yield three point four or

811
00:44:50,160 --> 00:44:52,600
Speaker 1: four percent, and the yield on the two year four

812
00:44:52,800 --> 00:45:02,680
Speaker 1: point to seven percent. You're listening to Bloomberg Gaber markets

813
00:45:02,760 --> 00:45:05,839
Speaker 1: headlines and breaking news twenty four hours a day at

814
00:45:05,880 --> 00:45:09,840
Speaker 1: Bloomberg dot com, the Bloomberg Business at and at Bloomberg Victaque.

815
00:45:10,000 --> 00:45:19,000
Speaker 1: This is a Bloomberg Business Flash, and I'm Karen Moscow

816
00:45:19,080 --> 00:45:21,359
Speaker 1: watching shares of X on mobile this morning at one

817
00:45:21,360 --> 00:45:24,239
Speaker 1: point seven percent in early training after it expanded its

818
00:45:24,239 --> 00:45:28,880
Speaker 1: share buyback program to up to fifty billion dollars through four. Meanwhile,

819
00:45:28,960 --> 00:45:32,240
Speaker 1: futures are also higher, with SMP futures up ten points.

820
00:45:32,239 --> 00:45:34,600
Speaker 1: They've been extending their games a bit, up a quarter percent.

821
00:45:34,880 --> 00:45:37,200
Speaker 1: Down futures have sixty two points or two tenths of

822
00:45:37,200 --> 00:45:39,920
Speaker 1: a percent, and NASTACK futures up twenty nine and are

823
00:45:40,000 --> 00:45:42,200
Speaker 1: up about a quarter of a percent. The decks in

824
00:45:42,280 --> 00:45:44,920
Speaker 1: Germany's down three tenths of a percent. Ten. Your treasury

825
00:45:44,960 --> 00:45:47,400
Speaker 1: down eight thirty seconds, held three point four or four percent,

826
00:45:47,400 --> 00:45:49,120
Speaker 1: and they yield on the two year four point to

827
00:45:49,320 --> 00:45:52,319
Speaker 1: seven percent nine x, Screwed Oil up one point seven

828
00:45:52,320 --> 00:45:55,120
Speaker 1: percent of a dollar seventeen at seventy three dollars twenty cents,

829
00:45:55,160 --> 00:45:57,439
Speaker 1: and Barrel comics gold down a tenth of upper cent

830
00:45:57,520 --> 00:46:00,200
Speaker 1: or two dollars at seventeen ninety six an ounce. The

831
00:46:00,239 --> 00:46:02,560
Speaker 1: Euro one point oh five one one against the dollar,

832
00:46:02,600 --> 00:46:05,360
Speaker 1: British found one point two one seven five, and the

833
00:46:05,520 --> 00:46:08,560
Speaker 1: en one thirty six point seven seven bitcoin this morning.

834
00:46:08,560 --> 00:46:11,680
Speaker 1: That'll change yet about sixteen thousand, eight hundred dollars. And

835
00:46:11,680 --> 00:46:14,640
Speaker 1: that's a Bloomberg Business flash, Nathan. All right, Karen, thank you.

836
00:46:14,640 --> 00:46:17,200
Speaker 1: It is six fifty six on Wall Street. Bloomberg Surveillance

837
00:46:17,239 --> 00:46:18,560
Speaker 1: is up next, but first we want to take a

838
00:46:18,560 --> 00:46:20,560
Speaker 1: look at some of the stocks moving in the pre market.

839
00:46:20,600 --> 00:46:23,920
Speaker 1: Bloomberg's Kaylee Lines joins US Live for that, and Kaylee

840
00:46:23,960 --> 00:46:26,360
Speaker 1: Karen mentioned the move we're seeing an X on mobile

841
00:46:26,400 --> 00:46:29,080
Speaker 1: shares on the stock buy back expansion. I wonder if

842
00:46:29,080 --> 00:46:32,360
Speaker 1: that's part of what's bringing the broader market just a

843
00:46:32,360 --> 00:46:35,239
Speaker 1: little bit higher right now. Yeah, it definitely could be.

844
00:46:35,280 --> 00:46:38,160
Speaker 1: I mean, this move for Exxon is relatively significant. I

845
00:46:38,160 --> 00:46:39,799
Speaker 1: mean the line on the chart is straight up because

846
00:46:39,800 --> 00:46:42,040
Speaker 1: it was little change in premarket trading now, it's one

847
00:46:42,280 --> 00:46:45,000
Speaker 1: three quarters of one percent on this buy back. And

848
00:46:45,000 --> 00:46:47,600
Speaker 1: when I say buy back, holy buy back fifty billion

849
00:46:47,680 --> 00:46:51,120
Speaker 1: dollars through four. So they're returning more money to shareholders

850
00:46:51,120 --> 00:46:53,600
Speaker 1: as these energy companies always seem to prioritize, and they

851
00:46:53,640 --> 00:46:56,319
Speaker 1: aren't going to up their capital investment. They say that

852
00:46:56,360 --> 00:46:59,880
Speaker 1: will remain at twenty five billion dollars through seven. So

853
00:47:00,080 --> 00:47:04,040
Speaker 1: raises an interesting political question considering the Biden administration has

854
00:47:04,080 --> 00:47:07,680
Speaker 1: been pushing energy companies like Exxon to reinvest more profit

855
00:47:07,920 --> 00:47:10,480
Speaker 1: into production to keep prices that pumped down for the

856
00:47:10,520 --> 00:47:13,359
Speaker 1: American consumer. But clearly x in doing something a little

857
00:47:13,400 --> 00:47:16,080
Speaker 1: different with that windfall. And it's interesting to contrast this

858
00:47:16,160 --> 00:47:19,400
Speaker 1: with what we heard from Chevron yesterday. They're allegating an

859
00:47:19,440 --> 00:47:22,359
Speaker 1: extra two billion dollars to cap to capex next year

860
00:47:22,400 --> 00:47:23,880
Speaker 1: to invest in more production. So a bit of a

861
00:47:23,880 --> 00:47:26,719
Speaker 1: contrast here, but clearly x On investors like what they're hearing,

862
00:47:26,960 --> 00:47:28,279
Speaker 1: and I guess we're seeing a little bit of a

863
00:47:28,360 --> 00:47:32,880
Speaker 1: contrast from the traditional energy space to the green energy space.

864
00:47:32,880 --> 00:47:36,319
Speaker 1: We're seeing Tesla shares continuing to be under pressure this morning. Yeah,

865
00:47:36,480 --> 00:47:38,480
Speaker 1: right now, they're down about one point eight percent trading

866
00:47:38,480 --> 00:47:40,360
Speaker 1: it a hundred and seventy dollars a share, and I

867
00:47:40,360 --> 00:47:42,000
Speaker 1: think we can chalk up most of that move to

868
00:47:42,040 --> 00:47:44,440
Speaker 1: what's going on in China. The company is going to

869
00:47:44,520 --> 00:47:48,360
Speaker 1: shorten production shifts at its Shanghai factory as soon as Monday,

870
00:47:48,360 --> 00:47:51,560
Speaker 1: plus they're delaying the onboarding of some new hires, So

871
00:47:51,600 --> 00:47:54,480
Speaker 1: this really adds fuel to the narrative that demand for

872
00:47:54,600 --> 00:47:58,720
Speaker 1: Tesla's electric vehicles in China is just simply not meeting expectations.

873
00:47:58,760 --> 00:48:01,040
Speaker 1: And this is a really important market for Tesla. Made

874
00:48:01,120 --> 00:48:04,720
Speaker 1: up about two of their revenue last quarter, so China

875
00:48:04,800 --> 00:48:07,359
Speaker 1: is very significant. The other Tesla related story that may

876
00:48:07,400 --> 00:48:10,040
Speaker 1: be weighing on the stock is some blooperg reporting overnight

877
00:48:10,040 --> 00:48:12,920
Speaker 1: that some of Elon Musk's bankers are considering providing him

878
00:48:12,920 --> 00:48:15,920
Speaker 1: a new margin loan or multiple loans backed by Tesla

879
00:48:15,960 --> 00:48:17,960
Speaker 1: stock to replace some of that high interest debt he

880
00:48:18,040 --> 00:48:20,759
Speaker 1: layered on to buy Twitter forty four billion dollars. So

881
00:48:20,840 --> 00:48:23,200
Speaker 1: that may be a risk, But China obviously more directly

882
00:48:23,200 --> 00:48:25,560
Speaker 1: tied to the company's fundamentals, and I think that's what's

883
00:48:25,600 --> 00:48:27,799
Speaker 1: dragging on the stock at this point. And just quickly, Kayley,

884
00:48:27,840 --> 00:48:29,480
Speaker 1: I wonder if that sort of pushes back against the

885
00:48:29,480 --> 00:48:32,120
Speaker 1: broader China narrative when we're seeing the country sort of

886
00:48:32,120 --> 00:48:34,960
Speaker 1: go a little bit away from COVID zero. Yeah, in

887
00:48:35,000 --> 00:48:37,040
Speaker 1: Hong Kong as well, there was more reporting overnight that

888
00:48:37,080 --> 00:48:40,320
Speaker 1: the government made further loosen restrictions there, so that also

889
00:48:40,400 --> 00:48:42,160
Speaker 1: is moving the markets that did so in Asia. It

890
00:48:42,239 --> 00:48:44,400
Speaker 1: is also affecting some stocks here in the US, including

891
00:48:44,400 --> 00:48:47,480
Speaker 1: casino operators like Las Vegas stands and when resorts there,

892
00:48:47,520 --> 00:48:49,359
Speaker 1: each up about three and a half percent because they

893
00:48:49,400 --> 00:48:51,920
Speaker 1: have big revenue exposure to Macau. And then some of

894
00:48:51,920 --> 00:48:54,520
Speaker 1: those Chinese technology stocks with listings here the a d

895
00:48:54,680 --> 00:48:56,600
Speaker 1: R s of Billy Billy, for example, which is a

896
00:48:56,719 --> 00:49:00,000
Speaker 1: Chinese online entertainment and video company, are doing really well.

897
00:49:00,120 --> 00:49:02,200
Speaker 1: That stock is up ten point four percent in pre

898
00:49:02,280 --> 00:49:05,680
Speaker 1: market today, and it's up a hundred and forty over

899
00:49:05,719 --> 00:49:07,920
Speaker 1: the course from the start of November two now. So

900
00:49:07,960 --> 00:49:09,880
Speaker 1: it just really goes to show you how sizeable some

901
00:49:09,960 --> 00:49:12,720
Speaker 1: of those moves are. Yeah, no kidding, Bloomberg's Kaylee lines,

902
00:49:12,800 --> 00:49:14,560
Speaker 1: thanks for this, Kayley, great have you gone with us?

903
00:49:14,760 --> 00:49:17,640
Speaker 1: Looking ahead to the open, futures are moving higher. U

904
00:49:17,680 --> 00:49:20,960
Speaker 1: S and P futures right now up ten points Nathan

905
00:49:21,000 --> 00:49:24,279
Speaker 1: Hager alongside Karen Moscow. It is six fifty nine on

906
00:49:24,400 --> 00:49:28,839
Speaker 1: Wall Street. Stay with us. Bloomberg surveillance starts right now

907
00:49:30,560 --> 00:49:34,200
Speaker 1: by from the financial capital of the world, broadcasting across

908
00:49:34,239 --> 00:49:37,759
Speaker 1: the lode. This is w BBR, New York, Bloomberg E.

909
00:49:37,880 --> 00:49:47,960
Speaker 1: Living Frio. We're switching from right now inflation fears for

910
00:49:47,960 --> 00:49:50,239
Speaker 1: recession fears right now, but