Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: day Break for Thursday, December eighty two. Coming up to Shower,
Speaker 1: Wall Street looks to snap a five day losing streak
Speaker 1: as recession fears pile up. Socks in Hong Kong rally
Speaker 1: under force at mass wearing requirements, maybe scraped Elon Musk's
Speaker 1: bankers consider new margin LUNs to cut risky Twitter debt
Speaker 1: and disgrace. Crypto founder Sam Bankman Freed may soon appear
Speaker 1: on Capitol Hill. Governor hokel announces her plans for New
Speaker 1: Yorkers to avoid the Triple Demick. Plus, New Jersey Governor
Speaker 1: Murphy is out of the hospital, left of surgery. On
Speaker 1: Michael bar More Ahead, I'm John Stay Shower and Sports.
Speaker 1: Aaron Judge resigned with the Yankees, the Mets at a
Speaker 1: picture wins for the Knicks, Nets Rangers in St. John.
Speaker 1: That's all s Train ahead on Bloomberg Daybreak on Bloomberg
Speaker 1: eleven Free on New York, Bloomberg N one, Washington, d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and
Speaker 1: Francisco Sirius x M one nine Team and around the
Speaker 1: world old on Bloomberg Radio Dot Carmen the Bloomberg Business.
Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow, and
Speaker 1: US stock index futures are mostly higher this morning. Sex
Speaker 1: So went on Wall Street and we check the markets
Speaker 1: all day long here at Bloomberg radios and p futures
Speaker 1: of four points or a tenth of a percent. Our
Speaker 1: futures that will change and nasday futures have two ten
Speaker 1: percent or twenty four points. Tenure treasury down eight thirty seconds.
Speaker 1: You three point four or four percent yield on the
Speaker 1: two year four point to seven percent. Nathan Karen. Stocks
Speaker 1: are coming off five straight days of losses, and the
Speaker 1: biggest moves have been in the bond market. The spread
Speaker 1: between the two and tenure yields, a gage often used
Speaker 1: to predict recessions, is it's most inverted since the nineteen seventies.
Speaker 1: David Harden is chief investment Officer at Summit Global Investments. Well,
Speaker 1: I think people are still a little bit focused on
Speaker 1: the possibility of this uh PAL pivot. I think that's
Speaker 1: in people's minds and hopes. I think maybe they're wanting
Speaker 1: that under their Christmas tree, if you will and and
Speaker 1: so I think this starts a little bit more focused
Speaker 1: on him playing Santa Claus for us. But in all reality,
Speaker 1: the bond market might have it right. They seem to
Speaker 1: get it right a lot more often, so we have
Speaker 1: to pay attention to that move. Some global investments, David
Speaker 1: Harden says the main focus for traders remains sharply on
Speaker 1: the FED well in Asia overnight, Nathan Hong Kong was
Speaker 1: the top performer in the region. The Hankstang game more
Speaker 1: than three percent in today's session, and we get the
Speaker 1: recap from Bloomberry, Yvon Man in Hong Kong, Karen and Nathan.
Speaker 1: The region really only being lifted by one story in
Speaker 1: Hong Kong after reports the city is looking at scrapping
Speaker 1: rules that require masks at public venues. Also cut in
Speaker 1: quarantine times from seven to five days. The reopening trade
Speaker 1: was once again on fire, from a calcasino's airlines to
Speaker 1: retail all up on the news. This clear preference on
Speaker 1: Chinese equities and M and B is quite clear now,
Speaker 1: with sources telling us Chinese regulators have asked the nation's
Speaker 1: biggest insurers to buy bonds after retail investors offload to
Speaker 1: cash from their fixed income investments. In Hong Kong, I'm
Speaker 1: Von Man Bloomberg Daybreak, All right, Von, thank you. Meantime
Speaker 1: in China, a senior health advisers warning the vast majority
Speaker 1: of the population could eventually contract COVID. The government is
Speaker 1: now taking steps toward reversing its zero tolerance policy. The
Speaker 1: former deputy chief of China's disease Control agency says sixty
Speaker 1: of the population could get infected in the first wave.
Speaker 1: Well back here in the US, Nathan Tesla and Twitter
Speaker 1: are the names where watching bankers for Elon Musk are
Speaker 1: considering providing the billionaire with new margin loans tied to
Speaker 1: the companies. Let's get the details live with the Bloomberg
Speaker 1: Steve Rappaport, Good morning, Steve, Good morning, Karen and Nathan.
Speaker 1: The margin loans are one of several options for Musk's
Speaker 1: backers to ease the burden of the thirteen billion dollars
Speaker 1: in debt Twitter took on as part of his acquisition
Speaker 1: of the platform. The banks, led by Morgan Stanley, put
Speaker 1: up their own cash to carry the entire debt package.
Speaker 1: Because of the decline and credit markets, Musk's tumultuous start
Speaker 1: at the helm of Twitter didn't help either. The company
Speaker 1: is estimated to face annual interest costs of about one
Speaker 1: point two billion dollars if the current debt structure remains
Speaker 1: in place. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak.
Speaker 1: All right, Steve, Thanks. Turning to the crypto space, we
Speaker 1: could soon get more information on the epic collapse of
Speaker 1: f t X. Disgraced founder Sam Bankman Freed may appear
Speaker 1: on Capitol Hill as soon as next week. We get
Speaker 1: the details from Amy Morris in our Bloomberg ninety one
Speaker 1: newsroom in Washington. The Senate Banking Committee has asked Bankman
Speaker 1: Freed to appear on Capitol Hill December four. Lawmakers want
Speaker 1: more information about the collapse of f t X, and
Speaker 1: they want to know, quote, how client funds were misappropriated,
Speaker 1: how clients were blocked from withdrawing their own money, and
Speaker 1: how you orchestrated a cover up. The House Financial Services
Speaker 1: Committee hearing except for the thirteen Bank mun Freed had
Speaker 1: said he might not be ready to testify by then.
Speaker 1: Chair Maxine Water says a subpoena is quote definitely on
Speaker 1: the table in Washington. I'm Amy Moore as Bloomberg Daybreak,
Speaker 1: All right, Amy, thank you, and now it's not the
Speaker 1: only news on disgraced former executives this morning. Late yesterday,
Speaker 1: former theropised president and chief operating officer Ram Sunny Malwani
Speaker 1: but sentenced to prison, and Bloomberg said, Baxter has the story.
Speaker 1: The sentence coming from US District Judge Edward Davola and
Speaker 1: San Jose thirteen years for defrauding investors and patients of Pharanos.
Speaker 1: Dogwani ran the blood testing startup alongside its founder and
Speaker 1: chief executive officer, Elizabeth Holmes. The sentence is very close
Speaker 1: to what prosecutors had asked for a term of fifteen years.
Speaker 1: The judge said he'll decide later how much restitution must
Speaker 1: be paid. The government has asked for both to be
Speaker 1: ordered to pay about eight hundred million dollars in San Francisco,
Speaker 1: I'm at Baxter Bloomberg Daybreak, all right, and thank you.
Speaker 1: In the labor market, inflation plus a battle for talent,
Speaker 1: and now cost cutting efforts and making for an interesting
Speaker 1: picture of corporate America. And now we're learning X on
Speaker 1: mobiles awarding its employees in the US pay increases above inflation.
Speaker 1: Just weeks after posting record profit. Bloomberg's Charlie p Hellett
Speaker 1: has more. It underscores just how strong two has been
Speaker 1: for the fossil fuel industry. A lot of sectors, like
Speaker 1: technology and finance are cutting jobs. Sources tell Bloomberg workers
Speaker 1: will receive an average salary bump of nine percent on
Speaker 1: Those who got promoted will see an additional five percent increase.
Speaker 1: A spokeswoman four x on Mobile says in aggregate it
Speaker 1: is Exxon's biggest salary award in fifteen years. In New York,
Speaker 1: Charlie Pealty Bloomberg day Break, Great, Charlie. Thanks, and it's
Speaker 1: a different labor story At the New York Times, more
Speaker 1: than a thousand employees are preparing to stage a one
Speaker 1: day walk out today. It escalates a standoff with the
Speaker 1: management over a stamped contract. A New York Times spokesperson
Speaker 1: said the company was disappointed that the News guild was
Speaker 1: threatening to strike. In futures this morning are higher, s
Speaker 1: and P future is a five points or a tenth
Speaker 1: of a percent down. Futures are a little changed and
Speaker 1: ASDAC futures have a quarter percent or twenties six points
Speaker 1: straight ahead. We have your latest local headlines plus the
Speaker 1: check of sports, and this is Bloomberg Karen, Thanks six
Speaker 1: o seven on Wall Street. Fifty degrees in Central Park.
Speaker 1: Should stay sunny and cool today with highs in the
Speaker 1: low fifties, but getting ready for a big change at
Speaker 1: the end of the week and the possibility potential for
Speaker 1: some snow. It's bringing Michael bar for Look what else
Speaker 1: is going on in New York and around the world. Yes,
Speaker 1: I said it the S word. Thanks, You're welcome. You're
Speaker 1: having Tocalist pushing efforts to keep New Yorkers healthy with
Speaker 1: winter and the holiday is just ahead. Hocal says people
Speaker 1: need to take precautions because COVID cases are taking up
Speaker 1: alongside r s V in children and influenza. Are not
Speaker 1: all the woods. That thread is real and we have cases.
Speaker 1: Remember this. We're watching this intensely. The winter is often
Speaker 1: a tough time for the most vulnerable, but Hocal promises
Speaker 1: New Yorker will be ready. Complacency is our enemy. That
Speaker 1: is my biggest fear, that people are so desensitized and
Speaker 1: feeling that well, it is the norm. Yes, it has
Speaker 1: become our norm, but it does not have to be norm.
Speaker 1: That everybody gets sick Governor Hocal said as the state
Speaker 1: will provide testing vaccines and nearly eight thousand ventilators set
Speaker 1: to be sent to hospitals that need them. Mayor Eric
Speaker 1: Adams says the system to provide affordable housing is broken,
Speaker 1: not just in New York City, but all over the country. Adams,
Speaker 1: speaking at a faith based summits in New York, says,
Speaker 1: all we do is kick the can down the road.
Speaker 1: There's no desire to come and bring you together and
Speaker 1: say you have all of this property, why don't you
Speaker 1: come with a real housing plan. There's no desire to
Speaker 1: fix it. People are making money off the dysfunctionality of
Speaker 1: our cities across the America. Frustrated Adam says, we know
Speaker 1: at the beginning of the year we are going to
Speaker 1: fail a large number of people, and they're primarily black
Speaker 1: and brown in immigrants. The White House says President Joe
Speaker 1: Biden will announce the thirties six billion dollar bailout for
Speaker 1: the Central States Pension Fund, helping to shore up one
Speaker 1: of the nation's biggest multi employer plans. The President angered
Speaker 1: some of his labor allies last week by signing legislation
Speaker 1: imposing a contract he personally helped to negotiate between freight
Speaker 1: railroads and their unions, averting a possible strike that threatened
Speaker 1: to cripple the economy. However, four of the unions involved
Speaker 1: rejected the contract. New Jersey Governor Phil Murphy had minor
Speaker 1: surgery yesterday and his recuperating at home. The Governor's office
Speaker 1: did not specify what the surgery was for, but said
Speaker 1: it was a medical procedure. Officials also said it was
Speaker 1: not related to the kansaas tumor Murphy had removed from
Speaker 1: his kidney. In Global News twenty four hours a day
Speaker 1: on air and on Bloomberg Quick Take, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than a
Speaker 1: hundred twenty countries, Michael Barr and This Bloomberg Nathan Thanks Michael.
Speaker 1: Almost six ten on Wall Street Time for the Bloomberg
Speaker 1: Sports that Day, brought to you by Try State. How
Speaker 1: did U s Johnstad Show? Thanks Nathan. After the news
Speaker 1: that Aaron Judge had resigned with the Yankees, some details
Speaker 1: emerged about how it all went down. Believed to be
Speaker 1: a two horse race between the Yankees and Giants. The
Speaker 1: same Diego Padres swooped in offered Judge reported ten years,
Speaker 1: four hundred million dollars that got the attention to him
Speaker 1: Nankee owner Hall Hall Steinbrenner, who was vacationing in Italy.
Speaker 1: He got on the phone with Judge upped his offer
Speaker 1: to the nine years, three hundred sixty million that got
Speaker 1: the deal done. Yankee g M. Brian Cashman said Steinbrenner
Speaker 1: was the Mariano Rivera of the negotiations. The Padres then
Speaker 1: used some of that money last night to sign Xander
Speaker 1: Bogart's away from the Red Soft for eleven years, two
Speaker 1: hundred and eighty million. The Mets added a picture veteran
Speaker 1: Jose Quintana. This will be his seventh team. He pitched
Speaker 1: to an e r A under three last season nixt
Speaker 1: all of a sudden playing defense. They had allowed over
Speaker 1: a hundred points in each of the first twenty three games.
Speaker 1: They allowed under ninety in the last two being Atlantic.
Speaker 1: The Garden went thirteen to eighty nine. Big night for
Speaker 1: Julius Randall thirty four points, seventeen rebounds at Barkley's then
Speaker 1: estimated five of the last six beat Charlotte won two
Speaker 1: to one, sixteen. Kyber Yourving thirty three points, Kevin Durant
Speaker 1: had twenty nine and set Curry twenty but three of
Speaker 1: them combined for one three assists. Big third period for
Speaker 1: the Rangers. They scored four times and a span of
Speaker 1: less than six minutes, and they beat Vegas, the top
Speaker 1: team in the West, five to one. In Buffalo's win
Speaker 1: over Columbus, five goals for the Sabers, Page Thompson he
Speaker 1: ted NHL record, scoring four goals in the first period,
Speaker 1: Big East opener for St. John's eight six sixty seven
Speaker 1: win over to Paul John Stash Howard, Bloomberg Sports Nathan
Speaker 1: all Right, John, thank you. Bloomberg Sports is brought to
Speaker 1: you by Audie. Don't let someone else drive off in
Speaker 1: the Audi model you've always wanted. Visit your local try
Speaker 1: state Audie dealer to get behind the wheel of yours today,
Speaker 1: or visit Autie Offers dot com for more information. Just ahead,
Speaker 1: we'll get the latest on Elon Musk and Twitter. Could
Speaker 1: the deal be restructured for the forty four billion dollar
Speaker 1: take over. We'll get more on that shortly. First, futures
Speaker 1: are moving just a touch higher now, with SMP futures
Speaker 1: up three points, Staff futures little changed, up five points,
Speaker 1: and NASTAC futures are higher by seventeen points ten. Your
Speaker 1: treasuries down seven thirty seconds, the yield on the benchmark
Speaker 1: three point four four percent and at six twelve on
Speaker 1: Wall Street. Good morning, this is Bloomberg Day Break. We
Speaker 1: want to get to the latest on Twitter. Now. The
Speaker 1: saga continues with the new loan or elon Musk potentially
Speaker 1: in line to have the massive pile of debt he
Speaker 1: took on to buy the company restructured with new margin
Speaker 1: loans backed by stock from one of his other companies, Tesla.
Speaker 1: Let's bring in Bloomberg Quick Take correspondent Alex Webb for
Speaker 1: more on this news. Alex, good morning. How would this
Speaker 1: restructuring work exactly? Yes, So, as you say, he has
Speaker 1: pretty high interest payments right now on on the debt
Speaker 1: that was raised to pay for Twitter. In fact, Bloomberg
Speaker 1: has reported that the interest costs are about one point
Speaker 1: two billion dollars a year. That's considerably more than could
Speaker 1: has ever managed to post in free cash flow. Um. So,
Speaker 1: what this seems to be doing is that he would
Speaker 1: then take a margin loan backed by his Tesla stock,
Speaker 1: which would then presumably be at a far um more
Speaker 1: amenable interest rate UM and be able to then pay
Speaker 1: down some of those those other um uh, some of
Speaker 1: the there's other loans that he has taken UM in
Speaker 1: order from the deal. Oh say, so what could the
Speaker 1: potential impact v on Tesla's stock given that, as far
Speaker 1: as I understand it, these margin loans are going to
Speaker 1: be backed by shares of Tesla. I'm looking at the
Speaker 1: stock in the pre market this morning, it's moving a
Speaker 1: little bit lower. Does this put Tesla under even more pressure?
Speaker 1: It's hard to see how it doesn't put down Tessa
Speaker 1: under a little bit of pressure. Of course, you know,
Speaker 1: this is still going to be a very small proportion
Speaker 1: of the total um float of Tesla ches um. The
Speaker 1: unit stock has come down quite a lot since Elon
Speaker 1: got involved with Twitter, and it does mean that there
Speaker 1: will be a certain amount of volatility tied to Twitter's performance.
Speaker 1: You know, Twitter fails to um improve its financial performance,
Speaker 1: then there's an implication that some of the Tesla stock
Speaker 1: may go away from you know, you know, might have
Speaker 1: to sacrifice some of that tess stop extreme eventuality. But
Speaker 1: it's a possibility. Yeah, And how are we structuring like
Speaker 1: this effect the risks that the banks themselves have taken on.
Speaker 1: From what I understand, they put a lot of their
Speaker 1: own cash into the original deal for Elon Musk to
Speaker 1: buy Twitter. Well, well, that is unclear because we don't
Speaker 1: know exactly which part of the um the debt would
Speaker 1: be repaid. Blooms reported is po likely to be the
Speaker 1: unsecured debt um which from which Twitter pay is an
Speaker 1: interest rate of about eleven point seven five percent, But
Speaker 1: there are still other parts that, um, you know, the
Speaker 1: banks haven't been able to re sell given the the
Speaker 1: tightening conditions in in the debt market or the more
Speaker 1: difficult conditions in the debt market. So it may be
Speaker 1: that this is really about Elon Robin the banks themselves. Well,
Speaker 1: what does this say? What what are the implications for
Speaker 1: Elon Musk's own solvency here when he's thinking about taking
Speaker 1: margin loans like this? What what does it potentially tell
Speaker 1: us about Elon musks on financial security. Well, I mean
Speaker 1: it's clearly some slightly imaginative, Um, it's in a matching
Speaker 1: way for him to generate funding. He yes, he's the
Speaker 1: richest man in the world. His wealth has still come
Speaker 1: down from um, you know, the order of two hundred
Speaker 1: and eighty billion UM a year ago to only in
Speaker 1: inverted commas a hundred and seventy one billion today. This
Speaker 1: remains a small slice of his net worth, but of
Speaker 1: course he doesn't have that many liquid assets. Most of
Speaker 1: that network is tied up in his test stock is
Speaker 1: SpaceX stock UM and of course now Twitter itself, So
Speaker 1: he doesn't have the liquidity that the big tick sticker
Speaker 1: number would imply, and that's why he has to resort
Speaker 1: somebody slightly more imaginative financing options. Of course, a lot
Speaker 1: of what we've seen in terms of trying to get
Speaker 1: Twitter back on a firmer financial footing is to do
Speaker 1: huge rounds of layoffs and lots of cost thing. Since
Speaker 1: Elon Musk has taken over, does that change things in
Speaker 1: terms of how a restructuring of the debt could be
Speaker 1: handled here, Yes, because if it means that the debt
Speaker 1: repayments UM are reduced, then the need to find capital
Speaker 1: quickly and find cash flow quickly is diminished. You know,
Speaker 1: there's a little bit of a catch twenty two situation
Speaker 1: here where if he cuts jobs too quickly then uh,
Speaker 1: it poses risks to income because you've seen a lot
Speaker 1: of advertisers back away from Twitter, at least on a
Speaker 1: temporary basis. So you know, Twitter was expected before this
Speaker 1: deal was completed to have um negative free cash flow
Speaker 1: of about twenty three million dollars this year. That would
Speaker 1: have been increasing to an order of two hundred million
Speaker 1: dollars next year. That's a long way short of the
Speaker 1: one point two billion a year that he needs to find.
Speaker 1: He is having now come in and cleared the deck
Speaker 1: at the phase where he has to work out now
Speaker 1: how to make more money, and that you know, he's
Speaker 1: likely to require adding head count, certainly in some positions,
Speaker 1: not least in engineering roles. So giving a little bit
Speaker 1: of financial flexibility might enable him to do that. All right,
Speaker 1: Alex Webb as always good to talk with you as
Speaker 1: the Twitter Elon Musk saga continues. Alex Webb quick take,
Speaker 1: correspondent at Bloomberg News, joining US Live this morning and
Speaker 1: again Tesla shares onward that Elon Musk bankers are considering
Speaker 1: new margin loans backed by Tesla stock. Tesla's down just
Speaker 1: about two percent in the pre market. Futures little changed
Speaker 1: this morning. SMP futures are up two points, STOW futures
Speaker 1: down one Nasdaq futures are higher by fourteen points, the
Speaker 1: tenure treasuries down six thirty seconds, the three point four
Speaker 1: or four percent, and the yield on the two year
Speaker 1: right now four point to six percent. Still ahead. We'll
Speaker 1: look at Republicans priorities when they take back the majority
Speaker 1: in the House. Next. About the conversation on the way
Speaker 1: with GOP Congressman French Hill of Arkansas. This is Bloomberg Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business Attend at Bloomberg Quick Tape.
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.
Speaker 1: And US dondex futures are steady after a five day
Speaker 1: routes sparked by concerns at the Federal Reserve overmain hawkish
Speaker 1: in the face of economic headwinds. And we check the
Speaker 1: markets all day long here on Bloomberg Radio, with US
Speaker 1: and P futures up four points of a tenth of
Speaker 1: Upper sent DAL future is little changed and NASDAG future
Speaker 1: is up almost two tenths per cent or twenty points.
Speaker 1: The decks in Germany is down about four tenths of
Speaker 1: a per cent. Ten Your treasury down six thirties seconds
Speaker 1: held three point four or four percent. That yield on
Speaker 1: the two year four point to six percent. NIMEX screwed
Speaker 1: oil is up seven tenths percent or fifty cents. It's
Speaker 1: a seventy two fifty cents of barrel. And that's a
Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on
Speaker 1: what's going on around the world. Michael Karen, thank you
Speaker 1: very much. At least two more classified documents have been
Speaker 1: found in possession of former President Donald Trump, his lawyers
Speaker 1: saying they discovered the material while searching a storage unit
Speaker 1: in West Palm Beach, Florida. The House is set to
Speaker 1: take a final vote on protections for same sex marriages.
Speaker 1: Today's vote will sent the legislation to President Joe Biden.
Speaker 1: In the NBA, the Nets, Knicks and Celtics were winners,
Speaker 1: the Wizards and Warriors lost. In the NHL, the Rangers,
Speaker 1: Bruins and Capitals. All one Global News twenty four hours
Speaker 1: a day on air and on Bloomberg quick Take, powered
Speaker 1: by more than seven hundred journalists, had analysted more than
Speaker 1: one d twenty countries. I'm Michael Barr, and this is Bloomberg.
Speaker 1: Nathan all right, Michael, thank you. It is six three
Speaker 1: on Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak.
Speaker 1: Well after the Georgia Senate runoff at Raphael Warnock securing
Speaker 1: the final Senate seat for Democrats, the new Congress is
Speaker 1: outlining its priorities for the new year, and Republican Congressman
Speaker 1: French Hill of Arkansas spoke with our David Weston on
Speaker 1: Bloomberg's Balance Power to discuss financial regulation priorities in the
Speaker 1: new Congress, including cryptocurrency regulation. Let's talk about the next
Speaker 1: Congress and what you anticipate. Now you're gonna be in
Speaker 1: the majority position here, uh so you're gonna have more
Speaker 1: say over what happens. What do you want to get accomplished?
Speaker 1: You and your Committee Financial Service commedite. What do you
Speaker 1: want to get a complish in the next and the
Speaker 1: next Congress? This upcoming congress, we set the agenda in
Speaker 1: House Financial Services Committee. We have some key goals we
Speaker 1: want to pursue. First, we'd like to have a bipartisan
Speaker 1: oversight and regulatory measure for digital assets. We'd like to
Speaker 1: take the collapse of f t X and do something
Speaker 1: positive with that by having a consensus on both sides
Speaker 1: of the hill on the right kind of regulatory proposal
Speaker 1: for the digital assets and one that will preserve that
Speaker 1: business here in the United States and preserve the ability
Speaker 1: to innovate on blockchain. We think that's key. Next, we'd
Speaker 1: love to find a solution on a permanent reauthorization of
Speaker 1: the flood insurance program. We're on seventeen eighteen continuing resolutions there.
Speaker 1: I'd like to see a permanent reauthorization of our national
Speaker 1: flood program. It's important to our communities, homeowners, resilient communities,
Speaker 1: so that's a key feature. And look, we want to
Speaker 1: make sure our regulatory agencies like the SEC, the bank regulators,
Speaker 1: don't block capital formation. So you'll see US approve policy
Speaker 1: ideas and legislative ideas that enhance capital formation. So let's
Speaker 1: pick up a couple of as we could. Let's start
Speaker 1: with FTX in the crypto situation. As I understand it,
Speaker 1: before you get to the new Congress, you're plan on
Speaker 1: having some hearings in the current Congress. In the Lame
Speaker 1: Ducks edition, do we know whether Sam bankman Fried is
Speaker 1: gonna show up or not as he told you? And
Speaker 1: if he doesn't, will you compel him? Well, he tweeted
Speaker 1: that he wasn't going to appear, and I think Patrick McKendry,
Speaker 1: the ranking Republican, and Maxine Waters, the chair of the committee,
Speaker 1: they want him here personally. If he's got time to
Speaker 1: interview a deal with Andrew Ross Sorkin and make all
Speaker 1: these Twitter appearances, he can appear before our committee. I
Speaker 1: would certainly encourage Patrick mckenry and Share Waters to work
Speaker 1: together to compel him to appear. We want answers to
Speaker 1: what happened at ft X. Do you have a sense,
Speaker 1: Congressman going past ft X Once you figure out what happened,
Speaker 1: what sorts of regulation may be appropriate from Congress or
Speaker 1: doesn't have to come from the regulators. Well, I know.
Speaker 1: Reggie Torrez, a member of Congress from New York, wrote
Speaker 1: Chairman Ginsler, blaming the f t X collective collapse on him,
Speaker 1: that he has all the power to have properly handled
Speaker 1: this and he didn't exercise it. So there is concerned
Speaker 1: about what authorities the regulators have and what authorities they
Speaker 1: don't have. I think we ought to have a legislative
Speaker 1: solution define what a digital asset is and provides some
Speaker 1: transparency and clarity for consumers, investors, and innovators on blockchain
Speaker 1: as to what the rules are. We have a functional
Speaker 1: regulation system in our country, whether you're a commodity or
Speaker 1: a security, whether you're to be regulator as an investment
Speaker 1: or something else, and we need to clarify that so
Speaker 1: that America remains an innovative place for blockchain. And that
Speaker 1: was Republican Congressman French Hill of Arkansas speaking with David
Speaker 1: Weston on Bloomberg's Balance of Power. You can get the
Speaker 1: full interview on Bloomberg dot Com and on the Bloomberg terminal.
Speaker 1: Don't forget to tune into Balance of Power weekdays on
Speaker 1: Bloomberg Radio. It begins at noon Wall Street time. Bloomberg
Speaker 1: Daybreak is brought to you by ancient accountants and advisors,
Speaker 1: the right fit tax and accounting firm that you need
Speaker 1: to succeed. Visit them at Ancient dot Com slash v
Speaker 1: I P to learn more. That's ancient dot Com slash
Speaker 1: v I P futures just to touch higher Right now,
Speaker 1: S and P futures are up five points, NASTAC futures
Speaker 1: up nineteen. We'll get a look at your top stories,
Speaker 1: plus your local headlines in a full check of markets.
Speaker 1: Just to head first, here's Bloomberg meteorologist Rob Carolin with
Speaker 1: a look at the weather forecast. There'll be some passing
Speaker 1: flowning this today, but all in all, the triest Toady
Speaker 1: area should end up partly sunny today with temperatures between
Speaker 1: fifty and fifty five. This afternoon, we're partly cloudy loves
Speaker 1: in the city overnight near thirty five, will be in
Speaker 1: the twenties and the suburbs. I pressure holds on through tomorrow,
Speaker 1: partial sun forty five, partly to mostly cloudy for Saturday
Speaker 1: forty five, and there's a chance of rain of wet
Speaker 1: snow on Sunday. I'm Rob Caroline with your weekend forecast
Speaker 1: on Bloomberg eleven three oh broadcasting live from the Bloomberg
Speaker 1: Interactive Broker's studio in New York, Bloomberg elving to Washington,
Speaker 1: d C, Bloomberg one to Boston, Bloomberg one O six
Speaker 1: one to San Francisco, Bloomberg sixty to the Country, Syria's
Speaker 1: xm J A one nine team, and around the globe
Speaker 1: the Bloomberg Business and Bloomberg Radio dot Com. This is
Speaker 1: Bloomberg Daybreak six on Wall Street. Good morning, I'm Nathan
Speaker 1: Haggard and I'm Karen Moscow. We're nearly three hours away
Speaker 1: from the open of US trading. Time for the five
Speaker 1: things that you need to note to start your day.
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Speaker 1: Index futures are mostly higher this morning. Songs are coming
Speaker 1: off five straight days of losses, and the spread between
Speaker 1: the two year and ten year yields is the most
Speaker 1: inverted since the nineteen seventies. PGM chief investment strategist and
Speaker 1: head of Global Bonds, Robert Tipps says he sees moderate
Speaker 1: earnings risk on the horizon, which is hewing the balance
Speaker 1: away from equities. Normally, you'd have equity returns expected to
Speaker 1: be much higher than bonds. The bonds have really been
Speaker 1: rerated here. The Fed is going to need to be
Speaker 1: careful not to torpedo the economy, but they know that
Speaker 1: and PGMs. Robert Tipps says he expects the bond market
Speaker 1: to continue performing well as the FED raises rates in Asia. Overnight,
Speaker 1: Karen Hong Kong's Hanks, saying Index game more than three percent.
Speaker 1: That's after local media reported Hong Kong is considering scrapping
Speaker 1: outdoor mask mandates and easing COVID testing requirements. Well, Nathan
Speaker 1: back here in the US, Twitter and Tesla are back
Speaker 1: in the news. Bankers for Elon Musk are considering providing
Speaker 1: the billionaire with new margin loans. Bloomberry Steve Rappaport trains
Speaker 1: US Live with more in that story. Good Morning, Steve,
Speaker 1: Good morning Karen, and Nathan. Margin loans backed by Tesla
Speaker 1: stock is one option for banks to ease the high
Speaker 1: interest debt that Twitter took on when Musk acquired the company.
Speaker 1: Dwindling credit markets combined with Musk's bumpy start as Twitter CEO,
Speaker 1: forced bankers to cover the thirteen billion dollar debt with
Speaker 1: their own cash, sources tell Bloomberg. Talks are focused on
Speaker 1: ways to replace the three billion dollars of unsecured debt
Speaker 1: on which Twitter pays nearly twelve percent interest. Live in
Speaker 1: New York I'm Steve Rappaport Bloomberg day Break. Okay, Steve. Thanks.
Speaker 1: Another corporate note this morning, former Farness president and chief
Speaker 1: operating officer Remesh Sunny Balwani has been sentenced to thirteen
Speaker 1: years in prison after the company's founder Elizabeth Holmes was
Speaker 1: sentenced to eleven years for well Nathan Turning to another
Speaker 1: disgraced venture, ft X founder Sam Bankman Freed maybe appearing
Speaker 1: on Capitol Hill next week. Republican Arkansas Representative french Hill
Speaker 1: says having Sam Bankman Freed speak with lawmakers is a
Speaker 1: priority for the next Congress. Patrick McKendry, the ranking Republican,
Speaker 1: and Maxine Waters, the chair of the committee. They want
Speaker 1: him here personally. If he's got time to interview a
Speaker 1: deal book with Andrew Ross Sorkin and make all these
Speaker 1: Twitter appearances, he can appear before our committee. Congressman french
Speaker 1: Hill may the comments on Bloomberg's balance of power catch
Speaker 1: the program weekdays at noon and Wall Street time on
Speaker 1: Bloomberg Radio. And that's the five things you need to
Speaker 1: know to start your day, brought to you by Interactive Brokers.
Speaker 1: And again, futures are higher this morning with S and P.
Speaker 1: Futures up about seven points, up about two tens of
Speaker 1: upper cent DWAL future is little change and NASDAIC futures
Speaker 1: up to tens of upper cent or twenty four points.
Speaker 1: Say ahead, your latest local headlines plus a check of sports,
Speaker 1: and this is Bloomberg. All right, Karen, thank you, six
Speaker 1: thirty one on Wall Street. Let's bring in Michael bar
Speaker 1: with a look at what's going on in New York
Speaker 1: and around the world. One skin, Good morning, Michael, Good morning, Nathan.
Speaker 1: New York Governor Kathy Oakle says complacency is our enemy
Speaker 1: when it comes to fighting COVID, the flu and r
Speaker 1: s V. And step up this time, step up in
Speaker 1: December and January, get us through February, get us through
Speaker 1: the worst times by just if you're gonna see somebody
Speaker 1: that's in a vulnerable situation, just get tested. Governor Hokel
Speaker 1: says New York will be ready with testing and vaccines.
Speaker 1: New Jersey Governor Phil Murphy is recovering at home after
Speaker 1: his office says he had minor surgery yesterday. The governor's
Speaker 1: office would not say what the procedure was, except that
Speaker 1: the surgery was not related to a kancerous tumor he
Speaker 1: had removed in Mayor Eric Adams says the system to
Speaker 1: provide affordable housing is broken, not just in New York
Speaker 1: City but all over. Adam spoke at a faith based
Speaker 1: summit in New York and all we do is kick
Speaker 1: the can down the road. We know at the beginning
Speaker 1: of the year we're going to fail a large number
Speaker 1: of people, and they're primarily black and brown and immigrants,
Speaker 1: and we know it. Frustrated, Adams says, we spend billions
Speaker 1: of taxpayer dollars for the broken issues we created. Months
Speaker 1: after the FBI sees records marked classified from Mara Lago,
Speaker 1: more sensitive documents are surfacing, this time in the storage
Speaker 1: unit said to be used by former President Trump in Florida.
Speaker 1: Loyola law professor Lori Levinson it is clear that the
Speaker 1: judges have gone to Trump and his lawyers and said
Speaker 1: searching again, look harder because National Archives does believe that
Speaker 1: there are more documents out there. Searches were reportedly conducted
Speaker 1: around Thanksgiving. The House Ethics Committee is investigating Democratic Representative
Speaker 1: Alexandria Ocassio Cortes. They did not say, though, for what alleged,
Speaker 1: if any, violations of congressional rules, Global Needs twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than journalists analyists more than a hundred twenty countries.
Speaker 1: Michael Barr, this is Bloomberg Natham. Thanks Michael, six thirty
Speaker 1: three on Wall Street time for the Bloomberg Sports up.
Speaker 1: They brought to you by Trice State Out of Here's
Speaker 1: John Stapshot. All right, Nathan Yankee. Fans obviously relieved with
Speaker 1: the news that Aaron Judge staying in New York, and
Speaker 1: now they want to know who might be Yanks add
Speaker 1: they need a left fielder where it is that might
Speaker 1: be the Pirates Brian Reynolds or a return of Andrew Bennintinni.
Speaker 1: They like that a starting pitcher. Carlos Radon's name has
Speaker 1: been mentioned, but he's looking for a lot six years,
Speaker 1: hundred eighty million. The money being thrown around his staggering
Speaker 1: Much court was made of Judge being the poster boyd
Speaker 1: for betting on yourself by turning the Yanks down last spring.
Speaker 1: He ended up with almost a hundred fifty million dollars more.
Speaker 1: How about Xandrew Bogart's Red Softs last spring up for him?
Speaker 1: Six years, hundred twenty million. Like Judge, he passed had
Speaker 1: a strong season. Bogart signed last night with San Diego
Speaker 1: eleven years, two hundred and eighty million. The Red Sox
Speaker 1: lost Bogarts, but they signed veteran reliever Kenny Jansen and
Speaker 1: Japanese outfielder Massataka Yoshida. The Mets signed veteran picture Jose
Speaker 1: Quintana for two years. Last season, Quintana had the lowest
Speaker 1: home run aloud rate in the National League. Next and
Speaker 1: NET both one and all mix over Atlanta one thirteen
Speaker 1: to eighty nine the ELBA Hawks to thirty eight percent
Speaker 1: shooting for Julius Randall thirty four points, seventeen rebounds. Net's
Speaker 1: got thirty three from Kyrie Irving, Kevin Der Anthony Beach
Speaker 1: Charlotte to one sixteen. The Rangers in Vegas won one
Speaker 1: third period when the Rangers scored four times three in
Speaker 1: a span of under two minutes. They won five to one. St.
Speaker 1: John's beat to Paul eighties six sixty seven Yukon one
Speaker 1: at Florida. By twenty one, the Huskies are ten down.
Speaker 1: Oh John Stashia War Bloomberg Sports Nathan Think John stash
Speaker 1: Our Bloomberg Sports was brought to you by Autie. Don't
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Speaker 1: Offers dot com for more information. It is now six
Speaker 1: thirty five on Wall Street. Bloomberg Radio is on the
Speaker 1: air from San Francisco to New York, London to Hong Kong.
Speaker 1: Let's check in with our global news team for some
Speaker 1: of the top stories heard on our three hundred affiliate
Speaker 1: radio stations around the world. I'm Courtney Donahoe on kt
Speaker 1: r H in Houston. Exon is giving its staff big
Speaker 1: pay bumps, says profit Source. I'm Gina Servetti and for
Speaker 1: KCBS in San Francisco. I'm reporting that if you think
Speaker 1: you're going to throw a New Year's Eve party at
Speaker 1: an Airbnb, maybe not. I'm Jeff Bullinger and on Cogo
Speaker 1: in San Diego. I'll be talking about the big tech
Speaker 1: companies that are building an enterprise cloud system for the Pentagon.
Speaker 1: I'm Kimberly Adams are on KYW in Philadelphia. I'll be
Speaker 1: reporting on thousands of New York Times employees preparing the
Speaker 1: Stagia one Day walkout. I'm Caroline Head and bloom bagh
Speaker 1: d A B. Dam Landon. We've been reporting on Van
Speaker 1: God pulling out of the world's largest climate finance alliance
Speaker 1: that was spearheaded by the former Bank of England Governor
Speaker 1: Mart Conny. I'm at Tory on w w J in Detroit.
Speaker 1: I'm reporting youth car prices across the country fell again
Speaker 1: in November. And those are some of the stories our
Speaker 1: twenty hundred Bloomberg journalists and analysts are working on this
Speaker 1: morning around the world. Now let's go to the Green
Speaker 1: Business Report, and here's Bloomberg's Jeff Bellinger. This is the
Speaker 1: Bloomberg Green Report. Hopes for wider adoption of electric vehicles
Speaker 1: have been fueled in part by declines in battery prices.
Speaker 1: It was a trend that went on for a decade,
Speaker 1: but at ground to a halt this year. Bloomberg Neft's
Speaker 1: annual Lithium ion battery price survey found there was a
Speaker 1: seven percent increase in average pack prices and twenty two
Speaker 1: It is the first increase in the history of the survey.
Speaker 1: Several things are driving the price hikes and The biggest
Speaker 1: factor is rising material costs. The prices of nickel and
Speaker 1: cobalt have eased recently, but they are still higher than
Speaker 1: they were a year ago. Lithium prices may be about
Speaker 1: to turn, but they are still higher than they've been
Speaker 1: in recent years. Strong battery demand is another issue, because
Speaker 1: there's a lad again how fast new supply can be
Speaker 1: brought online. Bloomberg Neft's energy storage team expects prices to
Speaker 1: remain elevated through next year, then begin to fall in
Speaker 1: four is more raw material supply comes online. Jeff Blinger,
Speaker 1: Bloomberg Radio. All right, Jeff, thank you. On top of
Speaker 1: the big rays coming for x On Mobile employees after
Speaker 1: the company's record profit. This red headline just across the
Speaker 1: Bloomberg terminal. Regarding the oil giant, it's expanding its share
Speaker 1: buy back program to fifty billion dollars through. That's compared
Speaker 1: to an earlier plans to spend thirty billion dollars to
Speaker 1: buy back shares through next year. Right now, Exxon shares
Speaker 1: are higher by one point four percent in early trading.
Speaker 1: Futures starting to gain some ground this morning. SMP futures
Speaker 1: are up eight points. Stown futures up thirty seven and
Speaker 1: NASDAC futures are higher by twenty seven points. Tenure treasuries
Speaker 1: down six thirty seconds, the yield three point four four percent.
Speaker 1: This is Bloomberg Markets headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business
Speaker 1: apt and at Bloomberg Quicktake. This is a Bloomberg Business clash,
Speaker 1: and I'm Karen Moscow in US dot index future is
Speaker 1: showing a bit more strength this morning. We go to
Speaker 1: the First Word breaking news desk for today's morning call
Speaker 1: in Here's film Malodey Bill, good morning, and good morning Karen.
Speaker 1: Modest games in the US futures right now with death
Speaker 1: futures up thirty seven points, sesapes gain eight and as
Speaker 1: the futures are higher by the US ten yield at
Speaker 1: three point four or four percent, Gold is down three,
Speaker 1: Oil is in the green, and bitcoin is trading little changed.
Speaker 1: Hong Kong jumped three point four percent overnight on more
Speaker 1: reopening signs, while your PR markets are trading in the
Speaker 1: red this morning. Back in the US on the economic
Speaker 1: Frinday thirty initial jobs claims and after the bellis night
Speaker 1: game stop sales did miss estimates and a deal. News
Speaker 1: people familiar said that Uni lever is to weighing the
Speaker 1: sale of it's US ice cream brands that may be
Speaker 1: valued at up to one point may be valued at
Speaker 1: up to three billion. In other news, Excellent expanded Sherry
Speaker 1: purchase programs up to fifty billion through four and wrapping
Speaker 1: things up. Avalon Bay was cutting neutral over at Goldman
Speaker 1: Sachs salesforce continued ship Robert Batt and Vulcan Materials was
Speaker 1: raised to overweight over at JP. Morgan Live from the
Speaker 1: First Breaking News Descomb, Bill Maloney, Karen Rank, Bill, thanks
Speaker 1: to you here live breaking news. Over your Bloomberg type
Speaker 1: squawk on your termin I'll scu you a w K
Speaker 1: and that's a Bloomberg business flash. Now here's Michael Barr
Speaker 1: with Moore on what's going on around the world. Michael, Karen,
Speaker 1: thank you very much. The House is set to take
Speaker 1: a final vote on protections for same sex marriages. Today's
Speaker 1: vote will send the legislation to President Joe Biden. Members
Speaker 1: of former President Donald Trump's team notified the FBI they
Speaker 1: had found additional documents marked as classified in a Florida
Speaker 1: storage facility near Palm Beach. The chair of the House
Speaker 1: committee investigating last year's January sixth attack on the Capitol
Speaker 1: says the Olds report will be released December twenty one.
Speaker 1: In the NBA, the Nets, Next and Celtics all winners,
Speaker 1: the Wizards and Warriors lost in the NHL, the Rangers,
Speaker 1: Bruins and Capitals all one Global news twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven hundred journalists and analysts more than
Speaker 1: a hundred twenty countries. I'm Michael Bar. This is Bloomberg.
Speaker 1: Karen all right, Michael Barr, thank you at six forty
Speaker 1: two on Wall Street. And let's turn to news and
Speaker 1: science and technology now with a Bloomberg and j I
Speaker 1: T STEM Report. It has brought to you by New
Speaker 1: Jersey Institute of Technology, and j i T offers New
Speaker 1: Jersey's first undergraduate degree in fintech, tech driven finance focused
Speaker 1: What will you make at n j I T. Learn
Speaker 1: more at n j I T dot E d U
Speaker 1: slash fintech and now here's just making news and science, technology, engineering,
Speaker 1: and math. Several U S Senators are willing to subpoena
Speaker 1: f t X founder Sam Bankman Freed if he does
Speaker 1: not choose to voluntarily answer questions. Senator Shared Brown and
Speaker 1: Patrick Toomey have asked Bank been free to test a
Speaker 1: five before hearing on cryptocurrency. Brown wrote that Bank ben
Speaker 1: Freed must answer for the failures of f t X
Speaker 1: and alometer research. The Biden administration is taking sides against
Speaker 1: Google and what's seen as a consequential case involving social
Speaker 1: media and a Supreme Court filing. The Justice Department argued
Speaker 1: that social media website should be held liable for promoting
Speaker 1: harmful speech in some cases. The case involves a family
Speaker 1: wanting to sue Google over a terrorist attack. And Bloomberg
Speaker 1: News has learned that the Netherlands is planning new controls
Speaker 1: on exports of chip making equipment to China that could
Speaker 1: align Dutch trade rules with US efforts to restrict Beijing's
Speaker 1: access to high end technology. Washington has been pushing its
Speaker 1: allies to join efforts to cut off China. That's the
Speaker 1: Bloomberg and j I t Stem report. Nathan all right, Karen,
Speaker 1: thank you for coming up to sixty four on Wall Street,
Speaker 1: and it is time to check what's going on in
Speaker 1: d C. Some of the top stories in our nation's
Speaker 1: capital include Congress poking China with a boost of Taiwan
Speaker 1: and a chipspan in the must pass defense bill, President
Speaker 1: Biden to announce thirty six billion dollars for an ailing
Speaker 1: Teamsters pension fund, and Democrats demanding a plan from Elon
Speaker 1: Musk to combat hate speech on Twitter. Let's get more
Speaker 1: on some of these stories. Now. We're joined live by
Speaker 1: Bloomberg Government congressional reporter Jack Fitzpatrick, who's been watching not
Speaker 1: just the debate around the Defense bill, but of course
Speaker 1: a must pass government funding bill before the next shutdown deadline. Jack,
Speaker 1: good morning, So what are these provisions in the defense
Speaker 1: bill they could upset China. Well, they're focused on Taiwan.
Speaker 1: One of them is that it authorizes, or would authorize,
Speaker 1: if enacted, ten billion dollars in weapons sales to Taiwan. UH.
Speaker 1: There's also another measure that generally would restrict the use
Speaker 1: of semiconductor chips made by some Chinese companies in items
Speaker 1: used by the military. UH. Some of these provisions were
Speaker 1: scaled back a bit. There was an earlier proposal two
Speaker 1: more broadly stop the use of those chips from Chinese
Speaker 1: companies by all government contractors that would be much more aggressive,
Speaker 1: and there was some pushback to that. The Biden administration
Speaker 1: also succeeded in getting lawmakers to take out language that
Speaker 1: would designate Taiwan a major non NATO ally, which is
Speaker 1: essentially already the U s S stance on it. But
Speaker 1: there was quite a bit of controversy with with China
Speaker 1: and the Biden administration saying maybe adding that language would
Speaker 1: go too far, so they've scaled it back in some ways.
Speaker 1: But again, the authorization for weapons sales and some limitations
Speaker 1: on purchases of chips by Chinese companies is definitely a
Speaker 1: significant thing in this bill. Yeah, interesting to see some
Speaker 1: of the back and forth going on, given that the
Speaker 1: president has been at least trying to keep US China
Speaker 1: relations from getting even worse after that meeting last month
Speaker 1: with Chinese President She Now, Jack, I know you've been
Speaker 1: following very closely what's going on with government funding. There's
Speaker 1: a shutdown deadline coming up in what a little more
Speaker 1: than a week. What's the latest there, Yes, the deadline
Speaker 1: is the sixteenth, that's next Friday. Uh. The latest I've
Speaker 1: heard is that Democrats, Uh, this seems to be a
Speaker 1: joint effort between the House and Senate Democrats are are
Speaker 1: going to put out their own omnibus UH spending package
Speaker 1: that they see as more or less a bipartisan offer,
Speaker 1: even though there's still no bipartisan agreement no Republicans sign off.
Speaker 1: So they're going to put out on Monday, the Monday
Speaker 1: before a Friday deadline, UH, their own omnibus package that
Speaker 1: they feel like potentially could pass both chambers if there's
Speaker 1: no sign off from Republican leadership. This would be an
Speaker 1: extremely long shot, and it's probably more reflective of the
Speaker 1: fact that there's a bit of a standoff just on
Speaker 1: the top lines. They haven't decided UH and agreed in
Speaker 1: a bipartisan way on how much money to spend on
Speaker 1: defense versus domestic programs UH, And until they do that,
Speaker 1: they can't really write a real bipartisan bill. But this
Speaker 1: is at least a move by Democrats to just kind
Speaker 1: of shake the branches and see what falls out and
Speaker 1: hope that it speeds along further negotiations. All right, let's
Speaker 1: turn to the White House. Now, the self described most
Speaker 1: pro union president ever is putting a focus on union
Speaker 1: pensions today. Yes, he is going to hold an announcement
Speaker 1: today on a thirty six billion dollar bailout for the
Speaker 1: Central States Pension Fund UH that largely supports retirees and
Speaker 1: workers from the Teamsters. Uh This is obviously notable. After
Speaker 1: uh there was some disappointment among some labor focused supporters
Speaker 1: of the president on the way the rail strike or
Speaker 1: the way to avoid a rail strike has has shaken out,
Speaker 1: with the President pushing for Congress to impose an agreement
Speaker 1: that four of the thirteen rail freight rail unions did
Speaker 1: not support. Uh so's He's going to have the president
Speaker 1: of the Teamsters, the president of the a f l
Speaker 1: c I O Labor Secretary at this event. There does
Speaker 1: seem to be a political angle along this, with Biden
Speaker 1: sort of trying to re up his or re emphasize
Speaker 1: his general support for unions. And finally, Jack, in our
Speaker 1: last minute here, we just got word this hour of
Speaker 1: more pressure from Capitol Hill on the new CEO and
Speaker 1: owner of Twitter, Elon Musk, tell us more about that. Yeah,
Speaker 1: Adam Schiff and Mark Takano, to Democratic members of the House,
Speaker 1: sent Elon Musk a letter asking him about what they
Speaker 1: see as a sharp rise in hate speech on Twitter. UH.
Speaker 1: They referenced a study by the Center for Countering Digital Hate,
Speaker 1: saying there's been an increase in anti Semitic and racial
Speaker 1: slurs since Musk became ci A CEO. Uh so, they
Speaker 1: they've they've asked him to respond with an outline on
Speaker 1: what he's doing about that. They also specifically flagged anti
Speaker 1: l g B t Q uh posts on Twitter. Uh So,
Speaker 1: definitely a refle action of concern at least among Democrats
Speaker 1: on hate speech on Twitter. Alright, Bloomberg Government Congressional reporter
Speaker 1: Jack Fitzpatrick keeping us on top of all that's happening
Speaker 1: in Washington. D c n O will be looking very
Speaker 1: closely for further developments as well on the f t
Speaker 1: X situation, whether Sam Bank Ben Freed is going to
Speaker 1: be testifying on Capitol Hill next week, So looking forward
Speaker 1: to getting the update from you on that as well.
Speaker 1: You can read much more on Bloomberg dot com or
Speaker 1: on the Bloomberg terminal. Follow all the latest on Bloomberg
Speaker 1: Radio in Washington. Bloomberg and one oh five point seven fm,
Speaker 1: h D two S ANDP Futures right now gaining some ground.
Speaker 1: They're up eleven points now. Dal Future is up sixty six.
Speaker 1: That's a gain of two tenths percent, and the NASDAC
Speaker 1: futures are higher by thirty four points. Ten. Your treasury
Speaker 1: is down seven thirty seconds, yield three point four or
Speaker 1: four percent, and the yield on the two year four
Speaker 1: point to seven percent. You're listening to Bloomberg Gaber markets
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com, the Bloomberg Business at and at Bloomberg Victaque.
Speaker 1: This is a Bloomberg Business Flash, and I'm Karen Moscow
Speaker 1: watching shares of X on mobile this morning at one
Speaker 1: point seven percent in early training after it expanded its
Speaker 1: share buyback program to up to fifty billion dollars through four. Meanwhile,
Speaker 1: futures are also higher, with SMP futures up ten points.
Speaker 1: They've been extending their games a bit, up a quarter percent.
Speaker 1: Down futures have sixty two points or two tenths of
Speaker 1: a percent, and NASTACK futures up twenty nine and are
Speaker 1: up about a quarter of a percent. The decks in
Speaker 1: Germany's down three tenths of a percent. Ten. Your treasury
Speaker 1: down eight thirty seconds, held three point four or four percent,
Speaker 1: and they yield on the two year four point to
Speaker 1: seven percent nine x, Screwed Oil up one point seven
Speaker 1: percent of a dollar seventeen at seventy three dollars twenty cents,
Speaker 1: and Barrel comics gold down a tenth of upper cent
Speaker 1: or two dollars at seventeen ninety six an ounce. The
Speaker 1: Euro one point oh five one one against the dollar,
Speaker 1: British found one point two one seven five, and the
Speaker 1: en one thirty six point seven seven bitcoin this morning.
Speaker 1: That'll change yet about sixteen thousand, eight hundred dollars. And
Speaker 1: that's a Bloomberg Business flash, Nathan. All right, Karen, thank you.
Speaker 1: It is six fifty six on Wall Street. Bloomberg Surveillance
Speaker 1: is up next, but first we want to take a
Speaker 1: look at some of the stocks moving in the pre market.
Speaker 1: Bloomberg's Kaylee Lines joins US Live for that, and Kaylee
Speaker 1: Karen mentioned the move we're seeing an X on mobile
Speaker 1: shares on the stock buy back expansion. I wonder if
Speaker 1: that's part of what's bringing the broader market just a
Speaker 1: little bit higher right now. Yeah, it definitely could be.
Speaker 1: I mean, this move for Exxon is relatively significant. I
Speaker 1: mean the line on the chart is straight up because
Speaker 1: it was little change in premarket trading now, it's one
Speaker 1: three quarters of one percent on this buy back. And
Speaker 1: when I say buy back, holy buy back fifty billion
Speaker 1: dollars through four. So they're returning more money to shareholders
Speaker 1: as these energy companies always seem to prioritize, and they
Speaker 1: aren't going to up their capital investment. They say that
Speaker 1: will remain at twenty five billion dollars through seven. So
Speaker 1: raises an interesting political question considering the Biden administration has
Speaker 1: been pushing energy companies like Exxon to reinvest more profit
Speaker 1: into production to keep prices that pumped down for the
Speaker 1: American consumer. But clearly x in doing something a little
Speaker 1: different with that windfall. And it's interesting to contrast this
Speaker 1: with what we heard from Chevron yesterday. They're allegating an
Speaker 1: extra two billion dollars to cap to capex next year
Speaker 1: to invest in more production. So a bit of a
Speaker 1: contrast here, but clearly x On investors like what they're hearing,
Speaker 1: and I guess we're seeing a little bit of a
Speaker 1: contrast from the traditional energy space to the green energy space.
Speaker 1: We're seeing Tesla shares continuing to be under pressure this morning. Yeah,
Speaker 1: right now, they're down about one point eight percent trading
Speaker 1: it a hundred and seventy dollars a share, and I
Speaker 1: think we can chalk up most of that move to
Speaker 1: what's going on in China. The company is going to
Speaker 1: shorten production shifts at its Shanghai factory as soon as Monday,
Speaker 1: plus they're delaying the onboarding of some new hires, So
Speaker 1: this really adds fuel to the narrative that demand for
Speaker 1: Tesla's electric vehicles in China is just simply not meeting expectations.
Speaker 1: And this is a really important market for Tesla. Made
Speaker 1: up about two of their revenue last quarter, so China
Speaker 1: is very significant. The other Tesla related story that may
Speaker 1: be weighing on the stock is some blooperg reporting overnight
Speaker 1: that some of Elon Musk's bankers are considering providing him
Speaker 1: a new margin loan or multiple loans backed by Tesla
Speaker 1: stock to replace some of that high interest debt he
Speaker 1: layered on to buy Twitter forty four billion dollars. So
Speaker 1: that may be a risk, But China obviously more directly
Speaker 1: tied to the company's fundamentals, and I think that's what's
Speaker 1: dragging on the stock at this point. And just quickly, Kayley,
Speaker 1: I wonder if that sort of pushes back against the
Speaker 1: broader China narrative when we're seeing the country sort of
Speaker 1: go a little bit away from COVID zero. Yeah, in
Speaker 1: Hong Kong as well, there was more reporting overnight that
Speaker 1: the government made further loosen restrictions there, so that also
Speaker 1: is moving the markets that did so in Asia. It
Speaker 1: is also affecting some stocks here in the US, including
Speaker 1: casino operators like Las Vegas stands and when resorts there,
Speaker 1: each up about three and a half percent because they
Speaker 1: have big revenue exposure to Macau. And then some of
Speaker 1: those Chinese technology stocks with listings here the a d
Speaker 1: R s of Billy Billy, for example, which is a
Speaker 1: Chinese online entertainment and video company, are doing really well.
Speaker 1: That stock is up ten point four percent in pre
Speaker 1: market today, and it's up a hundred and forty over
Speaker 1: the course from the start of November two now. So
Speaker 1: it just really goes to show you how sizeable some
Speaker 1: of those moves are. Yeah, no kidding, Bloomberg's Kaylee lines,
Speaker 1: thanks for this, Kayley, great have you gone with us?
Speaker 1: Looking ahead to the open, futures are moving higher. U
Speaker 1: S and P futures right now up ten points Nathan
Speaker 1: Hager alongside Karen Moscow. It is six fifty nine on
Speaker 1: Wall Street. Stay with us. Bloomberg surveillance starts right now
Speaker 1: by from the financial capital of the world, broadcasting across
Speaker 1: the lode. This is w BBR, New York, Bloomberg E.
Speaker 1: Living Frio. We're switching from right now inflation fears for
Speaker 1: recession fears right now, but