Speaker 1: Live from the Bloomberg Interactive Burgers Studios. Is Bloomberg day
Speaker 1: Break for Wednesday, December twenty one two. Coming up this hour.
Speaker 1: Ukraine's president heads to Washington in his first trip outside
Speaker 1: the country since Russia's invasion. As committee votes to release
Speaker 1: former President Trump's tax returns. Sam Bankman freed readys for
Speaker 1: extradition to the US, and Elon Musk seeks a replacement
Speaker 1: as Twitter CEO. The NYPD says two people are dead
Speaker 1: in an apparent subway accident. Plus New York Mayor Adams says,
Speaker 1: spread the love, not the virus during the holidays. I'm
Speaker 1: Michael blar More, I'm John Stashward, sports donning baseball news,
Speaker 1: Carlos Grea changed his mind, be sunning with the Mets,
Speaker 1: the next one the Rangers, and Devil's Law. That's all
Speaker 1: s traded ahead on Bloomberg day Break on Bloomberg eleven
Speaker 1: three on New York, Bloomberg one, Washington, d C, Bloomberg
Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco
Speaker 1: Sirius x M one nine team and around the world
Speaker 1: Old on Bloomberg Radio dot Com and via The Bloomberg Business.
Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow. US
Speaker 1: DOT index futures are on the rise this morning, and
Speaker 1: we checked the markets all day long here on Bloomberg.
Speaker 1: S and P futures are of twenty five points of
Speaker 1: seven tens of uppercent. Death Future is up about eight
Speaker 1: tens of upper cent or two hundred fifty eight points,
Speaker 1: and Azdak future is up sixtensive upper cent or seventy
Speaker 1: two points ten your treasury, that'll change, you'll three point
Speaker 1: six eight percent and they yield on the two year
Speaker 1: four point to two percent. And I'm ex screwed. Oil
Speaker 1: is up one percent this morning. Nathan, all right, Karen,
Speaker 1: thank you. We'll get back to the markets in a moment,
Speaker 1: but we begin this morning with a couple of major
Speaker 1: stories in politics. First, Ukrainian President Vladimir Zelinski is leaving
Speaker 1: Ukraine for the first time since Russia's invasion. He will
Speaker 1: address Congress in person in the nation's capital. Bloomberg Government
Speaker 1: reporter Jack Fitzpatrick says it is a big moment in
Speaker 1: the debate over a to the war torn country. It's
Speaker 1: the big deal. There have been some questions about really
Speaker 1: where House Republicans come down in the firmness of their
Speaker 1: support for Ukraine. To have a joint address to Congress
Speaker 1: and in person addressed especially, would be a very significant
Speaker 1: moment at a pivotal time, because these kinds of agreements
Speaker 1: are going to be a bit more difficult when it's
Speaker 1: a Republican House and a Democratic Senate, So any sort
Speaker 1: of show of unity with them there would be a
Speaker 1: very significant thing. Bloomberg Governments Shack Fitzpatrick reports President Biden
Speaker 1: will announce two billion dollars in additional assistance to Ukraine,
Speaker 1: plus a delivery of Patriot missile batteries to Ukraine. Meantime,
Speaker 1: Nathan and Donald Trump's tax returns are back in focus.
Speaker 1: A House committee is voted to officially release the former
Speaker 1: president's tax information to the public. Bloomberg's Amy Morris has
Speaker 1: a details from our studios in Washington. The Houseways and
Speaker 1: Means Committee signed off on a motion to release Trump's
Speaker 1: tax returns to the House of Representatives. Chairman Richard Neil
Speaker 1: says personal information will be redacted. This was not about
Speaker 1: being punitive, it was not about being malicious, and there
Speaker 1: were no leaks from the committee. The analysis found Trump
Speaker 1: was able to use questionable deductions and aggressive tax strategies
Speaker 1: to minimize his tax bills, and that the I r
Speaker 1: S did not audit Trump for two years while he
Speaker 1: was in office, despite a program that makes the auditing
Speaker 1: of sitting president's mandatory. Republicans say releasing the information sets
Speaker 1: a dangerous precedent in Washington. I'm anymore, as Bloomberg daybreak,
Speaker 1: All right, Amy, thank you. Now, let's turn to Elon
Speaker 1: Musk and the latest in his sanga as head of Twitter.
Speaker 1: Musk now says he will step down as CEL once
Speaker 1: a replacement is found, Bloomberg said, backs to reports, It
Speaker 1: comes as the Federal Trade Commission deepens its investigation into
Speaker 1: Twitter's use of user data. The Federal Trade Commission has
Speaker 1: interviewed two former senior executives of Twitter already regarding privacy
Speaker 1: and data security. Now practices is the issue, and whether
Speaker 1: it's complying with a twenty eleven consent order. Since Elon
Speaker 1: Musk has taken over, the FDC has shown it as
Speaker 1: not afraid to levy ft defines. It did find Facebook
Speaker 1: a record five billion dollars over the Cambridge Analytica data scandal.
Speaker 1: This can't be welcome news from Musk, who has fired
Speaker 1: many of his oversight team and attorneys. Musk, by the way,
Speaker 1: says he will oversee the software and servers teams in
Speaker 1: San Francisco. I'm at Baxter Bloomberg daybreak. All right, and
Speaker 1: thank you. As a turmoil at Twitter continues, Tesla shares
Speaker 1: are declining and ARC Investment CEO Cathy Wood is scooping
Speaker 1: them up. Exchange traded funds backed by ARC bought slightly
Speaker 1: more than four d forty five thousand shares of the
Speaker 1: company since early October. This is the first quarter and
Speaker 1: seven that ARC has been a net buyer of Tesla.
Speaker 1: Right now, shares are higher in early trading. They're up
Speaker 1: about two and a quarter percent. All right, Let's turn
Speaker 1: from Twitter down to Crypto Karen and the latest on
Speaker 1: Sam Bankman Freed, the ft X co founder, could be
Speaker 1: making his way state signed from the Bahamas as soon
Speaker 1: as today. Bloomberg Steve Rappaport joins US Live with that story.
Speaker 1: Good morning, Good morning, Nathan, and Karen. Spf is halfway
Speaker 1: through the process of returning to the US, having signed
Speaker 1: his surrender documents. According of the Island's acting Commissioner of Corrections. Today,
Speaker 1: Bankman Freed will sign a waiver of extradition before FBI
Speaker 1: agents are expected to take him away on a private flight.
Speaker 1: Bankman Freed initially vowed to fight extradition to the US
Speaker 1: to face fraud, money laundering, and other charges related to
Speaker 1: the collapse of his firm. His change of heart tied
Speaker 1: in part to the possibility of getting released on bail.
Speaker 1: Here live in New York. I'm Steve Rappaport, Bloomberg Daybreak.
Speaker 1: All right, Steve, thank you all. Taking a look in
Speaker 1: markets now. European stocks are advancing alongside US stock index futures.
Speaker 1: Yesterday saw the SNP five hundred clothes higher for the
Speaker 1: first time in four sessions. Equities have been on a
Speaker 1: recent skid due to concerns over central bank tightening. Ye.
Speaker 1: Speaking of central banks, Karen, this week's move from the
Speaker 1: Bank of Japan continues to reverberate across markets. The yen
Speaker 1: is steady this morning, after yesterday's strong move, which saw
Speaker 1: the currency strengthened the most since Taking a look at
Speaker 1: the end. Right now, it's trading at one thirty one
Speaker 1: point six nine against the dollar. Bloomberg Opinion Columns. Muhammad
Speaker 1: al Arian says the bo j's move provides some stability,
Speaker 1: but also area's risk. This is the step towards normalization.
Speaker 1: The good news for them is I think that can
Speaker 1: control the process. That's actually good news for global markets
Speaker 1: because it doesn't force selling by Japanese institutions. However, over
Speaker 1: time even this approach becomes unsustainable. Bloomberg Opinion columnist Muhammadalarian
Speaker 1: expects a slow exit from what he calls the BOJS
Speaker 1: unsustainable policy regime. Well, let's turn to China now. Nathan
Speaker 1: and has continued pivot away from COVID zero policy. Chinese
Speaker 1: workers of mild COVID are now being told to go
Speaker 1: back to work in some cities. This is Chinese officials
Speaker 1: seek to limit the economic impact of an explosion in
Speaker 1: cases Beijing. Shift from COVID zero has been accompanied by
Speaker 1: a wave of infections in major urban centers across the country.
Speaker 1: Futures this morning are on the rise. SMP futures up
Speaker 1: twenty three points. That's up about six tenths of uppercent,
Speaker 1: DAL futures up two thirty nine or seven tenths of
Speaker 1: uppercent and NASDACK futures up about six tenths of uppercent
Speaker 1: Your latest local headlines straight ahead this is Bloomberg experien
Speaker 1: its degrees chili this morning in Central Park. Gonna be
Speaker 1: sunny and cool today with higher forty, but wait ray
Speaker 1: for some heavy rain to end the week. Now here's
Speaker 1: Michael bar with a look at some of the other
Speaker 1: stories making news in New York and around the world.
Speaker 1: Good morning, Michael, Good morning Nathan. N y p D
Speaker 1: officials are investigating an apparent deadly accident that took place
Speaker 1: in the subway in Manhattan. Two people were run over
Speaker 1: by several l trains yesterday. The victims were a forty
Speaker 1: four year old man and a sixty three year old woman.
Speaker 1: It left several horror five commuters in their wake. This
Speaker 1: woman saw the bodies at the sixth Avenue stop at
Speaker 1: the time. I told some guy that was waiting for
Speaker 1: the chain across to me, I'll make this too. Their
Speaker 1: bodies on there. He was like, you're kidding, and I said, no, Look,
Speaker 1: you're stepping in blood. The officials are still investigating how
Speaker 1: the bodies ended up on the tracks, but they say
Speaker 1: they don't believe the victims were connected and their deaths
Speaker 1: don't appear to be a crime. A last minute plead
Speaker 1: from New York City Mayor Eric Adams as holiday travelers
Speaker 1: continue to arrive, even as flue rs V and COVID
Speaker 1: nineteen cases continued to rise nationwide. Mayor Adams encourage New
Speaker 1: Yorkers to remain vigilant of the risks of these respiratory
Speaker 1: infections now under winter. How do we enjoy the holidays
Speaker 1: and spread love without spread into virus and we could
Speaker 1: have that combination. Mayor Adams encourages New Yorkers to be
Speaker 1: sure they test before gatherings and consider masking up. Winter
Speaker 1: storm is hitting the nation at the height of the
Speaker 1: holiday travel. Bloomberg meteorologist Rob Carolin as the latest Michael
Speaker 1: some of the coldest weather we've seen in forty years
Speaker 1: now starting to work its way into the northern Plain States.
Speaker 1: Temperatures from northern Montana into North Dakota are well below
Speaker 1: zero this morning. That air is going to be headed southward.
Speaker 1: It's gonna move down towards the Gulf of Mexico, affect
Speaker 1: Texas and much of the century United States by the
Speaker 1: end of the week, and will also affect the western
Speaker 1: Gulf Coast out ahead of this cold there. Over the
Speaker 1: next thirty six hours, we'll see a big storm developed
Speaker 1: it will go up through the central Great Lakes. That's
Speaker 1: going to produce a very significant snowstorm across parts of
Speaker 1: the central United States, with blizzard conditions possible around the
Speaker 1: Chicago Milwaukee areas, also across western Michigan. It's gonna cause
Speaker 1: quite a bit of rain and wind out ahead of
Speaker 1: the storm. Will see that effect portions of the mid
Speaker 1: Atlantic States in the Northeast as we head through Friday,
Speaker 1: So travel will be very difficult in the Northeast and
Speaker 1: Midwest on Friday. Michael, Yes, thanks rob Global News twenty
Speaker 1: four hours a day on air and Bloomberg Quick Take
Speaker 1: powered about more than journalists antialists more than a d
Speaker 1: twenty countries. Michael bar this is Bloomberg. Nathan. All right, Michael,
Speaker 1: thank you. It's time for the Bloomberg Sports Up Day,
Speaker 1: brought to you by try stayed out EA. Good morning,
Speaker 1: John Stash, Good morning, Nathan. The amazing Mets. Just when
Speaker 1: you thought they're freege and spending spring was over, came
Speaker 1: the stunning news earlier this morning that the Mets are
Speaker 1: now add in Carlos Carea. He had agreed last week
Speaker 1: to a thirteen year deal with the Giant. Press conference
Speaker 1: was supposed to take place yesterday got postponed. Reportedly difference
Speaker 1: of opinion about the results of Korea is physical. The
Speaker 1: Mets swooped in got Korea for twelve years, three hundred
Speaker 1: and fifteen million. He's always been a short stop. The
Speaker 1: plan is to move them. The third base. Nets have
Speaker 1: now guaranteed eight hundred million dollars just in free agents spending.
Speaker 1: They have to pay at tax of three hundred and
Speaker 1: eighty million justin Verlanders getting forty three million. He was
Speaker 1: at City Field to talk about coming to New York.
Speaker 1: Lived in New York for an off season. Um. I
Speaker 1: love the vibe here, I love the city, I love
Speaker 1: the people, and to have the opportunity to to come
Speaker 1: pitch in the city, um is something that I think
Speaker 1: I've I've always wanted the chance to do. The Aar
Speaker 1: and Judge press conferences today and the Bronx will be
Speaker 1: interesting to see if the Yankees announced the Judge will
Speaker 1: become the team captain. At the Garden blowout win for
Speaker 1: the Knicks over injury Riddle, Golden Stained one thirty two,
Speaker 1: the ninety four the Knicks and one eight in a
Speaker 1: row the Hills Toronto Tonight, the Warriors played tonight in Brooklyn.
Speaker 1: The Rangers were going for an eighth straight win and
Speaker 1: Chris Cryder scored twenty two second van but Pittsburgh one
Speaker 1: three to two. The Devil's, who earlier this season had
Speaker 1: a thirteen game one is Dreeca now lost their last
Speaker 1: six meeting by Carolina four to one. Seaton Hall lost
Speaker 1: the Big East game at Xavier seventy three to seventy.
Speaker 1: Yukon be Georgetown the Hoskins, and oh the Jets does
Speaker 1: Jacksonville tomorrow night and Zack Wilson will again be the
Speaker 1: Jets starting quarterback. John Stashward, Bloomberg Sports, Nathan all Right, John,
Speaker 1: thank you, and Bloomberg Sports was brought to you by
Speaker 1: Audie Don't let someone else drive off and the Audi
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Speaker 1: or visit Autie Offers dot com for more information. Just ahead,
Speaker 1: we'll get the latest on President Zelenski's trip to the
Speaker 1: nation's capital. First, we look at markets and to see
Speaker 1: futures moving higher, with SMP futures up twenty three points,
Speaker 1: staff futures up two hundred forty one Nastack futures are
Speaker 1: highed by sixty four points in the tenure treasury is
Speaker 1: a little changed right now yield on the benchmark ten
Speaker 1: year note three point six eight percent. Live from coast
Speaker 1: to coast, from New York to San Francisco, Boston to Washington,
Speaker 1: d C. Nationwide on Sirius Examp, the Bloomberg Business app,
Speaker 1: and Bloomberg dot Com. This is Bloomberg Daybreak. Good morning,
Speaker 1: I'm Nathan Hager. Let's get back to our top story
Speaker 1: this morning. What could be a dramatic few hours in
Speaker 1: the nation's capital as President Zelensky goes to Washington. Bloomberg's
Speaker 1: Bruce Einhorn joins us now with more on this. Bruce,
Speaker 1: good morning. What a statement this is that the first
Speaker 1: trip that President Zelensky is going to make outside his
Speaker 1: country since the war began is to the United States.
Speaker 1: It says a lot about the level of support this
Speaker 1: country has given to Ukraine in its war against Russia. Yes,
Speaker 1: and it also shows them the important to that President's
Speaker 1: landscape places on making sure that that support continues going forward.
Speaker 1: The big issue that Ukraine faces in Washington is the
Speaker 1: upcoming takeover as the House represented by Republicans UM. Some
Speaker 1: Republicans have expressed skepticism about the level of support that
Speaker 1: the US has given to Ukraine. UM. People like Marjorie
Speaker 1: Taylor Green have criticized the US and then bide administration
Speaker 1: for its support from Ukraine. UM. Quite a lot of Republicans,
Speaker 1: including the Senate Senate Leader Mitch McConnell, the leader of
Speaker 1: Republicans of the Senate UM, have expressed want support from Ukraine.
Speaker 1: That said, there is you know, there's reason for for
Speaker 1: Presidents Olinska and others to be concerned UM that UM,
Speaker 1: they need to shore up their support in Washington. And
Speaker 1: so this speech in front of a joint session of Congress,
Speaker 1: that's give the Ukrainian president opportunity to to address some
Speaker 1: of those some of those districts. And we are expecting
Speaker 1: as well that the President Biden, during a joint news
Speaker 1: conference at the i Had House with the President of Ukraine,
Speaker 1: is going to announce that he has indeed decided to
Speaker 1: deliver a Patriot UH anti air missile systems to Ukraine
Speaker 1: as well. Tell us more about the significance of patriots.
Speaker 1: This is something that President Zelinski has been really asking
Speaker 1: strongly for from the United States or some time. Yes,
Speaker 1: with good reason because of course Ukraine and being hit
Speaker 1: almost on a daily basis by drones, missiles coming from Russia,
Speaker 1: attacking civilian targets, attract attacking the energy, good h other infrastructure.
Speaker 1: So having the Patriot or Defense system would provide Ukraine
Speaker 1: with a valuable tool to to fight that. Um. The
Speaker 1: Patriots would be part of a new assistance package that
Speaker 1: would be worth nearly two billion dollars that President Biden
Speaker 1: is going to be announcing today. Uh. This also comes
Speaker 1: at a time when Congress is pois approved billion dollars
Speaker 1: in new aid for Ukraine. This is part of the
Speaker 1: big homicist spending bill that Congress is likely to pass
Speaker 1: within the next few days. So um uh many many uh.
Speaker 1: The signs of support for Ukraine at the moment, But
Speaker 1: again um, the Ukrainians do have to be concerned about
Speaker 1: just maintaining that. Um with the change in control of
Speaker 1: the House in the next few weeks. And as if
Speaker 1: the arrival of the Ukrainian president weren't enough, we have
Speaker 1: another major development coming out of Washington, something that former
Speaker 1: President Trump has been fighting for literally years. His tax
Speaker 1: returns are about to be made public. Yeah. So um
Speaker 1: soon after the Democrats one control of Congress back in
Speaker 1: two thousand and nineteen. The housewives and needs to be
Speaker 1: uh in the to the procedure to get the former
Speaker 1: president's tax returns. Uh. Trump um has litigated that um
Speaker 1: newly ran out the block here um but ultimately uh
Speaker 1: lost on the committee does have the returns. The committee
Speaker 1: voted yesterday on party line basis to release the returns. Uh.
Speaker 1: It'll probably still be a few days maybe people we
Speaker 1: actually um see those released because they do have to
Speaker 1: redact some things um. Uh some personal information for instanceance
Speaker 1: truly members that sort of thing. Um. However, we do
Speaker 1: have from Richard Neal, the chairman of the committee, the
Speaker 1: report about the audit that took place of the President
Speaker 1: Trump's returns while he was while his president so U
Speaker 1: from two thousand and seventeen onwards. Um. And there was
Speaker 1: pretty sharp criticism from from Congressman Meal about how that
Speaker 1: how that transpired. According to the chairman of the Way
Speaker 1: the Needs Commute, there was almost nothing done in terms
Speaker 1: of the audit of President Trump's returned during those years,
Speaker 1: which is a contrary to standard policy, which is that
Speaker 1: the i RS does an audit of the president and
Speaker 1: the Vice president UM. According to Meil, that didn't really
Speaker 1: happen until he made he sent a letter to to
Speaker 1: the RS in two thousand and nineteen uh and said
Speaker 1: that he needed to see this information. UM. According to Kneel,
Speaker 1: this what the shows is that there's there's a need
Speaker 1: for a bill that would require i RS to audit. Yeah,
Speaker 1: the changes to the i R s expected to come
Speaker 1: out of this fight that the president has been mounting
Speaker 1: for some time. Bruce Einhorn with us this morning for
Speaker 1: the latest from the nation's capital. Thanks for this first.
Speaker 1: This is Bloomberg Markets headlines and breaking new ones twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business at Land at Bloomberg Quick Take. This is a
Speaker 1: Bloomberg Business Flash and I'm Karen Moscow and European stocks
Speaker 1: are rising this morning alongside US stock index. Futures at
Speaker 1: the SNP five hundred close higher for the first time
Speaker 1: in four sessions. And we check the markets all day
Speaker 1: long year on Bloomberg SMP futures up twenty four points down,
Speaker 1: futures up two hundred fifty three. That's up almost eight
Speaker 1: tenths of uppercent and Nasdack future is up sixty five
Speaker 1: or six tenths of uppercent. The decks in Germany's up
Speaker 1: eight tenths of upper sent the tenure treasury little change.
Speaker 1: You'll three point six eight percent yield on the two
Speaker 1: year four point to two percent nine Max screwed oil
Speaker 1: up win and a quarter percent of ninety seven cents
Speaker 1: at seventy seven dollars twenty cents of barrel co Max
Speaker 1: School little change. In eighteen twenty four thirty announced the
Speaker 1: euro one point six two two against the dollar, British
Speaker 1: pound one point two one three one, the yen one
Speaker 1: point six four. Bitcoin is little changed at about sixteen thousand,
Speaker 1: eight hundred dollars, and we're watching shares of Nike up
Speaker 1: almost this morning. It posted another quarter of inventory build
Speaker 1: up a but quarterly sales exceeded Wall Street estimates and
Speaker 1: as a Bloomberg business flash now here Smuckel bar with
Speaker 1: Moore on what's going on around the world. Unchal, Good morning,
Speaker 1: Good morning, Karen. The House Ways A Means Committee voted
Speaker 1: to release former President Trump's tax information to the public.
Speaker 1: So far, we have learned that dozens of audit triggers
Speaker 1: littered Trump's tax returns. According to Congress's top nonpartisan tax lawyers,
Speaker 1: there are questionable private jet expenses and large, unsubstantiated charitable deductions,
Speaker 1: yet none of them have been seriously owned it. Ukrainian
Speaker 1: President voladimir's Lensky is making his way to Washington for
Speaker 1: a summit with President Joe Biden and to address Congress Today.
Speaker 1: In the NBA, the Next beat the Warriors one thirty
Speaker 1: two ninety four, the Wizards one. In the NHL, the
Speaker 1: Rangers and Devils lost. Global News twenty We're hours a
Speaker 1: day on here or and on Bloomberg Quick take powered
Speaker 1: by more than journalists and analysts more than twenty countries.
Speaker 1: Micha La Barre and this is Bloomberg. All right, Michael,
Speaker 1: thank you. This five twenty three on Wall Street. I'm
Speaker 1: Nathan Hagar and this is Bloomberg day Break. Now let's
Speaker 1: get back to elon Musk and Twitter that Saga isn't
Speaker 1: going away, but now after a rocky few weeks as CEO,
Speaker 1: looks like Musk is indeed going to do as promised
Speaker 1: in hand over the reins at the social network, but
Speaker 1: he won't be going too far. Let's bring in Alex Webb,
Speaker 1: who has been following the Twitter Musk saga very closely.
Speaker 1: Are Bloomberg Quick Take correspondent back with us this morning
Speaker 1: and Alex I love the headline on this piece on
Speaker 1: the terminal from our colleague Kurt Wagner. Elon Musk is
Speaker 1: finally running out of gas at Twitter. What are your
Speaker 1: thoughts on how things have gone over the last seven weeks? Gosh, yeah,
Speaker 1: he's been a It's been a month or two, hasn't it. Yeah,
Speaker 1: the he's stepping down the CEO. Is he leaving the company?
Speaker 1: He's going to be running the engineering and server teams.
Speaker 1: If you look at what's happened to headcount at Twitter,
Speaker 1: they had seven half thousand employees when he joined. That's
Speaker 1: dropped by about through firings and departures by about five thousand.
Speaker 1: What is left will presumably mostly server and engineering teams.
Speaker 1: So he's in a situation where he's going to sit
Speaker 1: down the CEO, but he's still going to be running
Speaker 1: a large trunk of the company. He's still going to
Speaker 1: be the controlling shareholder breathing down the neck of whoever
Speaker 1: is the actual CEO. UM I suspect this is more
Speaker 1: about how the company is presented outwardly. Not least it's advertisers.
Speaker 1: Those are its customers. Those are the people that it's
Speaker 1: been losing. Um. As our colleagues reported last week, they
Speaker 1: put us in the room with some of the meetings
Speaker 1: that Elon Musk has had with advertisers. Those meetings don't
Speaker 1: always seem to have gone particularly well. Um, he needs
Speaker 1: somebody who was experienced sitting in front of brands, in
Speaker 1: front of ad agencies and going, here's why it's worth
Speaker 1: advertis is gonnaur platform. You don't need to worry about
Speaker 1: these risks. Please give us your money. Um. I suspect
Speaker 1: that is the sort of person who's going to be
Speaker 1: looking to hire while he gets on behind the scenes,
Speaker 1: to the extent that Elon must never be t really
Speaker 1: behind the scenes trying to fix um some of the
Speaker 1: problems he sees with the company. Well, we've had a
Speaker 1: couple of names bandied about in the reporting and walk
Speaker 1: us through a couple of potential CEOs. Whether those are
Speaker 1: the kind of people that Elon Musk might have in
Speaker 1: mind to address some of those issues that you just outlined.
Speaker 1: So the you know, the name that seemingly a lot
Speaker 1: of people would like is Cheryl Sandberg. You know, she
Speaker 1: built much of the advertising model at Google. She built
Speaker 1: the advertising model at Facebook. Now meta, would she be
Speaker 1: willing to work for Ellen? Well, you know, she has
Speaker 1: worked for a founder CEO in the shape of Ellen,
Speaker 1: in the shape of Mark Zuckerberg, who has, you know,
Speaker 1: clearly his own management style. There are other names in
Speaker 1: there as well that like to Jay, I'm Jason Calicanus
Speaker 1: and David Sachs, who have perceived as being very close
Speaker 1: to Musque. They had come in to help run the
Speaker 1: company when he first took over. They you know, Jason
Speaker 1: Calicanus certainly has put his hand up in the air
Speaker 1: and saying he would like the job. You know, there
Speaker 1: are I think there's still plenty people out there who
Speaker 1: would like to do it. Is there anybody who could
Speaker 1: do a better job than him who would like to
Speaker 1: do it, Well, that's a slightly different question, but I
Speaker 1: don't think he will be short of candidates. Yeah, and
Speaker 1: we're gonna be watching it. It's gonna be probably quite
Speaker 1: some time before a new CEO finally gets settled in
Speaker 1: alex Web Bloomberg Quick Take correspondent will be checking back
Speaker 1: with you, I'm sure as we continue watching all the
Speaker 1: developments over at Twitter. Right now, SMP futures are up
Speaker 1: twenty four points, down futures up two hundred fifty two,
Speaker 1: Nastaic futures up sixty four points, and Tesla shares up
Speaker 1: two point six percent. On the Musque News will get
Speaker 1: your morning stop stories local headlines in the fuller check
Speaker 1: of markets. First, Today's Bloomberg weather forecast. Some high cloudy
Speaker 1: has headed our way today and end up being partly
Speaker 1: sunny with temperatures near forty this afternoon. Will cloud up overnight.
Speaker 1: Those thirty to thirty five large storm developing in the
Speaker 1: central part of the country will lead to rain developing
Speaker 1: across the Tri state area. Tomorrow afternoon. It'll be breezy
Speaker 1: fifty to fifty five, rainey, windy near fifty tomorrow night.
Speaker 1: Rain ends Friday fifty five. Much colder this weekend. I'm
Speaker 1: Rob Carolyn with your three day forecast on Bloomberg eleven
Speaker 1: three oh broadcasting live from the Bloomberg Interactive Broker Studio
Speaker 1: in New York. Bloomberg eleving Freedom to Washington, d C,
Speaker 1: Bloomberg nine one to Boston, Bloomberg one O six one
Speaker 1: to San Francisco, Bloomberg nine sixty to the country, Sirius
Speaker 1: XM to a one nine team, and around the globe,
Speaker 1: the Bloomberg Business and Bloomberg Radio dot com. This is
Speaker 1: Bloomberg Daybreak and it's coming up to five thirty on
Speaker 1: Wall Street. Good morning. I'm Karen Moscow, I'm Nathan Hager.
Speaker 1: Bloomberg Daybreak, brought to you by Innovation Refunds, is your
Speaker 1: daily reminder to apply for a payroll tax refund if
Speaker 1: you're smaller medium sized business was impacted by COVID nineteen.
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Speaker 1: and were nearly four hours away from the open of
Speaker 1: US trading. Let's get you up to date on the
Speaker 1: news you need to know at this shour. We begin
Speaker 1: with a couple of major stories and politics up. First,
Speaker 1: Ukrainian President Vladimir Zelenski is leaving Ukraine for the first
Speaker 1: time since Russia's invasion to address Congress in person in
Speaker 1: the nation's capital. Bloomberg Government reporter Jack Fitzpatrick says it's
Speaker 1: a big moment in the debate over aid to the country.
Speaker 1: There have been some questions about really where House Republicans
Speaker 1: come down in the firmness of their support for Ukraine.
Speaker 1: To have a joint address to Congress and in person
Speaker 1: addressed especially, would be a very significant moment at a
Speaker 1: pivotal time, because these kinds of agreements are going to
Speaker 1: be a bit more difficult when it's a Republican House
Speaker 1: and a Democratic Senate. Bloomberg, Jack Fitzpatrick or force at
Speaker 1: President Biden plans to announce two billion dollars in assistance
Speaker 1: to Ukraine, and meantime, Karen a. House committees voted to
Speaker 1: officially release former President Donald Trump's tax information to the public.
Speaker 1: The actual returns will come out in a few days.
Speaker 1: Analysis so far shows the former president used questionable deductions
Speaker 1: and aggressive tax strategies to minimize his bills. And now
Speaker 1: to Elon Musk, Nathan, the head of Twitter, says he
Speaker 1: will step down as CEO when a replacement is found.
Speaker 1: This comes as the FTC deepens its investigation into Twitter's
Speaker 1: use of US your data. The extradition of Sam Bankman
Speaker 1: freed from the Bahamas, is picking up steam. Karen, the
Speaker 1: FTX co founder, could be making his way stateside today Bloomberg.
Speaker 1: Steve Rappaport joins US Live Steve, good morning, Good morning,
Speaker 1: Karen and Nathan. FBI agents are expected to escort Sam Bankman,
Speaker 1: freed on a private flight back to the US after
Speaker 1: he signs a waiver of extradition in court. SPF has
Speaker 1: been held at the notorious Fox Hill Prison on the
Speaker 1: outskirts of Nasau Sin's that judge denied his request for bail.
Speaker 1: The possibility of making bail here reportedly played a role
Speaker 1: in his decision to no longer contest extradition to face
Speaker 1: numerous charges related to the collapse of his crypto firm.
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Al Right, Steve, Thanks,
Speaker 1: We're taking a look at markets now. European stocks are
Speaker 1: advancing alongside US stock index futures. Yesterday saw the SNP
Speaker 1: five hundred clothes higher for the first time in four sessions,
Speaker 1: and this week's move from the Bank of Japan continues
Speaker 1: to reverbrate. The yen is studying against the dollar, trading
Speaker 1: at one thirty one point six eight. Bloomberg Opinion columnist
Speaker 1: Muhammad al Arian has more on the b O j
Speaker 1: surprise decision. There's no doubt in my mind that this
Speaker 1: is the spectables normalization, but they're trying to make it
Speaker 1: a weedly long process as unexciting as possible so that
Speaker 1: it doesn't force selling font bie Japanese institutions. That's the
Speaker 1: big risk. Bloomberg Opinion columnist Muhammad al Arian says the
Speaker 1: move provides some stability, but does carry risk. At SMP
Speaker 1: futures right now, we're up twenty four points, DAL futures up.
Speaker 1: Tune in fifty seven, Nastact futures higher by sixty four points.
Speaker 1: Straight ahead, your latest local headlines and the check of sports.
Speaker 1: This is Bloomberg on Wall Street. We bring in Michael
Speaker 1: Barr for a look at what's going on in New
Speaker 1: York and around the world. Michael Nathan, thank you very much.
Speaker 1: New York City police are investigating an apparent accident that
Speaker 1: happened in the subway in Manhattan. The victims of forty
Speaker 1: four year old man and the sixty three year old
Speaker 1: woman had been hit by an L train shortly but
Speaker 1: the conductors of two subsequent trains did not notice the
Speaker 1: victims and also struck them on the tracks. This woman,
Speaker 1: who was at the sixth Avenue stop. At the time,
Speaker 1: New Yorkers were tough. We don't care a lot about
Speaker 1: but it's like sometimes you know, it takes a little
Speaker 1: time just to like play attention to something. Officials don't
Speaker 1: believe the victims were connected. A last minute plea from
Speaker 1: New York City Mayor Eric Adams as holiday travelers continued
Speaker 1: to arrive, even as flu, rs V and COVID cases
Speaker 1: continued to rise nationwide. Mayor Adams encouraged New Yorkers to
Speaker 1: remain vigilant of the risks of these respiratory infections now
Speaker 1: into winder this year, particularly around the flu from the
Speaker 1: from the briefing we receive, the numbers are higher than
Speaker 1: this traditionally is around this year. When you combine it
Speaker 1: with the other elements that we're facing, the other rs VS,
Speaker 1: COVID nineteen and just make it extremely challenging for New
Speaker 1: York to Mayor Adams encouraged New Yorkers to mask up.
Speaker 1: A large swath of the US is bracing for a
Speaker 1: dangerous mix of cold, howling winds, and blizzard conditions. It's
Speaker 1: already hammering the Northwest and is expected to disrupt plans
Speaker 1: for millions of holiday travelers. The Taliban has renegged on
Speaker 1: a promise they made when they took over Afghanistan in
Speaker 1: August of last year. Their Ministry of Higher Education now
Speaker 1: says women will no longer be allowed to attend public
Speaker 1: or private university. State Department spokesperson ned Price. The Taliban
Speaker 1: made promises to the people of Afghanistan and to the
Speaker 1: international community that schools would reopen. They claimed that this
Speaker 1: was a matter of procedures and arrangements and would be
Speaker 1: quickly reversed. Now we hear the opposite Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists analysts more
Speaker 1: than a hundred twenty countries on Michael Barr, this is Bloomberg, Nathan,
Speaker 1: Thanks Michael. By thirty three on Wall Street Time for
Speaker 1: the Bloomberg Sports Update, brought to you by tri State
Speaker 1: out of here. All right, Nathan, to think that the
Speaker 1: Mets under previous ownership, we're always considered to be cheap,
Speaker 1: not anymore. Not with Steve Cohen. They were already looking
Speaker 1: at a payroll about three hundred sixty million dollars. They
Speaker 1: had shelled out money that saw season to keep free
Speaker 1: agents Edwin Diaz and Brandon Neimo. They added Justin Verlander
Speaker 1: and five others, and now they're adding Carlos Korea. He's
Speaker 1: not going to the Giants as was announced last week.
Speaker 1: A little unclear what happened. Yesterday's press conference in San
Speaker 1: Francisco was canceled. In Korea has coming to the Mats
Speaker 1: twelve years, three hundred and fifteen million, These close friends
Speaker 1: with Mets short stop Francisco Lindoor. The plan is to
Speaker 1: move Korea to third base. It's like what the Yankees
Speaker 1: did once with Alex Rodriguez. Matt Carpenter, who had some
Speaker 1: Yankee heroics this past season, signed with San Diego. Forty
Speaker 1: two year old billionaire Matt Eshiba has a deal to
Speaker 1: buy the Phoenix Suns and the w NBA Mercury for
Speaker 1: four billion dollars. At the Garden, nixt maybe eight wins
Speaker 1: in a row, easily over Golden State one thirty two
Speaker 1: to ninety four. Manual quickly off the event for a
Speaker 1: team I twenty two points, Jalen Brunson scored twenty one,
Speaker 1: Quentin Grimes nineteen, r. J. Barrett eighteen, and another home
Speaker 1: game tonight against Toronto. The Rangers seven game win streak
Speaker 1: ended in Pittsburgh three to two. Chris Pryder both the
Speaker 1: Ranger goals. Slumping Devils lost at Carolina for to one.
Speaker 1: Seaton Hall lost at Xavier. Mike White's ribs still injured,
Speaker 1: so it'll again be Zack Wilson at quarterback for the
Speaker 1: Jets tomorrow at MetLife against Jacksonville. Big game Saturday Philadelphia
Speaker 1: at Dallas, and the Eagles are not ruling out quarterback
Speaker 1: Jalen Hurds despite his injured shoulder. John Stashaller, Bloomberg Sports
Speaker 1: Nathan Franti BUYOUTI don't let someone else drive off in
Speaker 1: the OUTI model you've always wanted. Visit your locals Rance
Speaker 1: State Autie Dealer to get behind the wheel of yours today,
Speaker 1: or visit autie Offers dot com for more information on
Speaker 1: Wall Street. Time for the Tri State Business Report hears
Speaker 1: Bloomberg's aad Cory comp Stack is expanding its presence in
Speaker 1: New York City with a new lease in Chelsea. The
Speaker 1: firm has been aggressively adding global office space over the
Speaker 1: past twelve months. CEO Michael Mandel tells Globe Street dot
Speaker 1: Com it's helped new team members on board quickly while
Speaker 1: becoming fully embedded in the firm's culture. A New York
Speaker 1: State commission approved to plan this week phasing out fossil
Speaker 1: fuel burning furnaces as soon as it requires energy efficient
Speaker 1: electric heat pumps or other non combustion heating systems in
Speaker 1: every new home built in twenty five or after. The plans.
Speaker 1: Part of New York's program to address climate change, the
Speaker 1: Biden administration is planning to use infrastructure law money to
Speaker 1: make sure every American has access to high speed internet,
Speaker 1: including in New Jersey. The first six million dollars of
Speaker 1: that commitment to the Garden State was announced this week
Speaker 1: in Trenton, New Jersey. Will eventually get one hundred million dollars.
Speaker 1: That's your Bomberg dry S date business report, I ed Corey,
Speaker 1: thanks said, It's five thirty six on Wall Street. The
Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was
Speaker 1: written by the Bloomberg Editorial Board. This week, the House
Speaker 1: committee investigating the January six riot referred former President Donald
Speaker 1: Trump for criminal prosecution. It was an unsurprising move, but lamentable. Nonetheless,
Speaker 1: there's no question that the committee, made up of seven
Speaker 1: Democrats and two Republicans found evidence that Trump behaved abominably
Speaker 1: that day. By any standard, his actions were in affront
Speaker 1: of the Constitution and to the rule of law. Yet
Speaker 1: whether they merit criminal prosecution is another matter. The referral
Speaker 1: risks elevating Trump in the eyes of Republican voters at
Speaker 1: a moment when many seem prepared to cast him aside.
Speaker 1: The House Committee has done an admirable job of documenting
Speaker 1: Trump's reprehensible conduct on January six. The faster the country
Speaker 1: can put those sordid events in the past, the better.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: Opinion or O P I N go on the Bloomberg terminal.
Speaker 1: This has been Bloomberg opinion, and you can hear Bloomberg
Speaker 1: opinion editorials every weekday at this time. Terminal customers can
Speaker 1: read more at O P I n go. Another story
Speaker 1: We're watching, Kathy Wood had ramped up her purchases of
Speaker 1: Tesla shares in the fourth quarter, even as concerns over
Speaker 1: CEO Elon Musk's ability to manage businesses rise. Potentially signifying
Speaker 1: Wood's faith in the billionaire and in electric vehicles. Right now,
Speaker 1: Tesla shares are hired by two point two percent in
Speaker 1: pre market trading. The stock is also been boosted by
Speaker 1: must confirming he will resign as CEO of Twitter once
Speaker 1: the replacement is found. SMP futures right now of twenty
Speaker 1: two points, Staff futures up two and thirty eight. Nasdaq
Speaker 1: futures highed by fifty three points ten. Your treasury little changed,
Speaker 1: the yield three point six eight percent. We'll get a
Speaker 1: fuller look of this market. What's the outlook for three?
Speaker 1: Andrew Sheets, chief cross assets strategist at Morgan Stanley, joins
Speaker 1: US Next Donde break markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com and Bloomberg
Speaker 1: Business out hand at Bloomberg Quicktape. This is a Bloomberg
Speaker 1: Business Flash and I'm Karen Moscow. European shares are rising
Speaker 1: alongside US stock index futures after the SMP five hundred
Speaker 1: close higher for the first time in four sessions, and
Speaker 1: we check the markets all day long here on Bloomberg Radio.
Speaker 1: SNP future is up half percent or twenty points, and
Speaker 1: ASDAG futures up four tens of upper center forty eight points,
Speaker 1: and own futures up seven tenths per cent or two
Speaker 1: hundred twenty nine points. The decks in Germany's up seven
Speaker 1: tenths of a percent, ten year treasury down one thirty
Speaker 1: second deal three point six eight percent. They yield on
Speaker 1: the two year four point to three percent. Nim X
Speaker 1: screwed oil up one point one percent of eighty two
Speaker 1: cents at seventy seven dollars, four cents of barrel comic
Speaker 1: school down two tenths per cent or two dollars eighty
Speaker 1: cents at eighteen twenty two sixty and ounce. The Euro
Speaker 1: one point six one seven against the dollar British found
Speaker 1: one point to one to nine, and the one point
Speaker 1: seven six and bitcoin little change at about sixteen thousand,
Speaker 1: eight hundred fifty dollars. That's a bloomberg business flash. Now
Speaker 1: here's Michael Barr with Moore on what's going on around
Speaker 1: the world. Michael Karen, thank you very much. The House
Speaker 1: Ways and Means Committee voted to release former President Trump's
Speaker 1: tax information to the public. So far, we have learned
Speaker 1: that dozens of audit triggers littered Trump's tax returns. According
Speaker 1: to Congress's top nonpartisan tax lawyers, there are questionable private
Speaker 1: jet expenses and large, unsubstantiated charitable deductions. Ukrainian President voladimir's
Speaker 1: Lenski will be in Washington and we'll meet with President
Speaker 1: Biden today. In the NBA, the Knicks beat the Warriors
Speaker 1: one two ninety four. The Wizards won. In the NHL,
Speaker 1: the Rangers and Devils lost. Big baseball news, Carlos Correa
Speaker 1: has reportedly agreed to sign with the Mets in a
Speaker 1: twelve year, three hundred fifteen million dollar deal. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Takes, powered by more than journalists and analyst countries.
Speaker 1: I'm Michael bar this is Bloomberg. Step right up in
Speaker 1: greet Carlos, Yeah, okay, Michael. Thanks. It's five forty two
Speaker 1: on Wall Street. This is Bloomberg Daybreak on Nathan Hager
Speaker 1: along with Karen Moscow. Let's take a look at some
Speaker 1: of the other stories making news this morning. We're watching
Speaker 1: shares of FedEx. They're higher by more than four percent
Speaker 1: in early training after earnings that beat estimates. Bloomberg's Doug
Speaker 1: Krisner has arrived with the details. Profit was lifted by
Speaker 1: price increases along with cost cuts. The combination helped to
Speaker 1: make up for a decline in package volume. FedEx also
Speaker 1: announced an additional one billion dollars of projected savings in
Speaker 1: physical three, bringing total savings to about three point seven
Speaker 1: billion dollars. Back in September, FedEx pledge to cut cost
Speaker 1: in the face of sagging volume. That's when it pulled
Speaker 1: its annual forecast. FedEx said it's been making rapid progress
Speaker 1: on its ongoing transformation while navigating a weaker demanded environment.
Speaker 1: In New York Time, Doug Prisoner, Bloomberg Daybreak, All right, Doug,
Speaker 1: thank you well. Nike also surprised to the upside. The
Speaker 1: company reported robust sales and mad to sustain inventory pile up,
Speaker 1: and investors liked that Nike is up almost thirteen percent.
Speaker 1: Dinner really trading quite the game this morning. We're also
Speaker 1: taking a look at streaming today. Google's YouTube is reportedly
Speaker 1: in advanced talks with the NFL about an exclusive deal
Speaker 1: for the Sunday ticket subscription service. This is according to
Speaker 1: The Wall Street Journal. There are separate reports that say
Speaker 1: negotiations for Sunday football games came down to Amazon and YouTube. Now, Amazon,
Speaker 1: you probably already know it's got the Thursday Night games.
Speaker 1: Now it looks like YouTube's about to snag Sunday's Karen.
Speaker 1: It's so interesting how things are changing, Nathan, you watch
Speaker 1: it on TV anymore? It's right, yeah. Shifting gears to
Speaker 1: the economy. This morning, we get some fresh data on
Speaker 1: the health of the consumer. The government issues are reading
Speaker 1: a consumer confidence for December. Attend Am Wall Street Time
Speaker 1: and we go to Bloomberg Vinidale shoot us for a preview.
Speaker 1: We're just an Inflation is forcing many Americans rely on
Speaker 1: credit cards and drug down savings accounts to make ends meet.
Speaker 1: Rising interest rates are adding to the burden as the
Speaker 1: Federal Reserve fights the worst inflation in decades. The Conference
Speaker 1: Boards Priority Board covering November showed consumer confidence dropped to
Speaker 1: a four month low. There's still one bright spot, the
Speaker 1: labor market, bolstered by a historic level of job openings.
Speaker 1: Boom breagday break Alright, Vinny, thank you. Not got a
Speaker 1: fuller look of this market this morning. We're very pleased
Speaker 1: to say we're joined by Andrew Sheets this morning, chief
Speaker 1: cross assets Strategists at Morgan Stanley and are always great
Speaker 1: to speak with you, particularly in the morning where we're
Speaker 1: seeing stocks pretty much around the world on the rise.
Speaker 1: Is there room for this relief railey to keep running? Hey,
Speaker 1: good morning, It's great to be here with you. So
Speaker 1: we're still skeptical about this rally into the early part
Speaker 1: of next year. We think you're still going to have
Speaker 1: a decelerating economy in both the US and Europe. It's
Speaker 1: we're going to be hard for central banks to message
Speaker 1: a major shift in policy, although we do think a
Speaker 1: shift in policy is coming, and we think earnings expectations
Speaker 1: remain too high in both the US and Europe. So,
Speaker 1: you know, I think today's price action is welcome, but
Speaker 1: we still think some some challenges lie ahead as will
Speaker 1: shift the calendar into three. How much further do you
Speaker 1: think that earnings or visions could go from here. It
Speaker 1: seems like a lot of companies have slashed their forecast
Speaker 1: heading into three already, but there does seem to be
Speaker 1: a consensus that those earnings expectations need to come down more. Yeah,
Speaker 1: So I think this is a fascinating debate as we're
Speaker 1: going around and talking to investors about the year ahead,
Speaker 1: and I think kind of two things are true. I
Speaker 1: think there's a lot of skepticism around the bottom up
Speaker 1: estimates for the SMP five hundred for next year, which
Speaker 1: are about kind of two hundred and thirty five dollars
Speaker 1: in earnings. I think most investors think that that's too high.
Speaker 1: And yet you know, we're four casting about one for
Speaker 1: the SMP five which at today's prices would put the
Speaker 1: market about twenty times earnings, which doesn't feel like one
Speaker 1: is the is the consensus either. If that was really
Speaker 1: what the market expected, we would be expecting it to
Speaker 1: trade lower. So I think there's there's a spread there.
Speaker 1: The market is probably skeptical, it's correct to say, of
Speaker 1: the bottom up consensus, but we don't think it's skeptical
Speaker 1: enough yet. And I think that's still where some of
Speaker 1: the downside in the early part of the year we
Speaker 1: think could come from, especially in the view of my
Speaker 1: colleague Mike Wilson, our US equity strategist. Now, the consensus
Speaker 1: seems to be building as well that there is going
Speaker 1: to be a recession next year. What's your view on that.
Speaker 1: Is it going to be a deep recession? Is it
Speaker 1: going to be mild? How's the US going to compare
Speaker 1: to the rest of the world. Yeah, so Morgan Stanley's
Speaker 1: economists are not forecasting recession for the US. We have
Speaker 1: growth slowing but but staying positive next year. But you know,
Speaker 1: I think that also masks some important nuance. There's still
Speaker 1: to be a large desceleration in nominal GDP U S
Speaker 1: nominal GDP is going to go from around eleven percent
Speaker 1: in the third quarter of this year down to two
Speaker 1: and a half percent by the end of next year.
Speaker 1: So you know, we think that has negative implications for earnings.
Speaker 1: And then you know, as we were just discussing, we
Speaker 1: think earnings do go into recession, that earnings growth is negative,
Speaker 1: so the economy does better than the earnings backdrop. Maybe
Speaker 1: that is a nice mirroring of an environment we've just
Speaker 1: been in where the earnings backdrop is really outperformed the economy.
Speaker 1: What's the pivot point for central banks next year? Do
Speaker 1: you think that? I mean, that's a big part of
Speaker 1: the debate as well. Isn't it about what the need
Speaker 1: what the Fed needs to see too, if not just
Speaker 1: slow down on interest rates, but to move toward getting
Speaker 1: them back down. Well, I think this is one of
Speaker 1: the most fascinating parts of the central bank discussion next
Speaker 1: year is that almost ken central banks pivot, can the
Speaker 1: stop raising rates without generating the type of euphoria optimism
Speaker 1: that would undo the hard work it's been trying to
Speaker 1: do in tightening financial conditions slowing the economy. It's a
Speaker 1: little bit of this catch twenty two that almost kind
Speaker 1: of once you stop hiking, the market would view it
Speaker 1: as as easing. So so that's a really big challenge,
Speaker 1: and you know, we do think an important way to
Speaker 1: think about that is that the FED could continue to
Speaker 1: talk relatively hawkishly even if it acts less hawkishly. So
Speaker 1: we expect the Feder reserved to raise interest rates by
Speaker 1: twenty five basis points on February one. We think that
Speaker 1: will be the last interest rate hike of the year.
Speaker 1: But in the March meeting and the meetings after that,
Speaker 1: we think the FED would continue to communicate quite a
Speaker 1: bit of vigilance. But the underlying data will be slowing,
Speaker 1: The inflation data will be slowing, and that will give
Speaker 1: them reasons that will give them excuses to to not
Speaker 1: hike at those meetings, to say that they continue to
Speaker 1: remain patient, that they're taking in the data as it comes,
Speaker 1: and that data is just warranting taking a little bit
Speaker 1: more time before that next step. But it's a it's
Speaker 1: a really hard message for any central bank to deliver,
Speaker 1: and I think it's important to keep in mind as
Speaker 1: we're hearing various central bank communication that when you know,
Speaker 1: we think about the pause, when we think about the
Speaker 1: last hike, it's not going to be telegraphed. It's not
Speaker 1: going to be balloons released from the ceiling. Thanks as always, Andrew,
Speaker 1: great to get your thoughts. Andrew Sheets, chief cross assets
Speaker 1: strategist at Morgan Stanley with us this morning. Right now,
Speaker 1: futures are pointing to a higher open. SMP futures are
Speaker 1: up nineteen points, Staff futures of two Nasdaq futures are
Speaker 1: higher by forty six points. UH steadier action in the
Speaker 1: treasury market this morning. Right now, the tenure is down
Speaker 1: one thirty second yield three point six percent. The yield
Speaker 1: on the two year is at four point to three percent.
Speaker 1: Stay with us. You're listening to Bloomberg Day Break, Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com of Bloomberg Business at Land at Bloomberg. Quicktap.
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow
Speaker 1: and futures are higher this morning. S and P future
Speaker 1: is up about twenty points or a half percent, Dow
Speaker 1: futures up two d twenty two points or seven tenths
Speaker 1: of up percent, and Nasdaq futures up forty six points
Speaker 1: or four tenths of uppercent. The decks in Germany is
Speaker 1: up seven tenths of uppercent. Ten year Treasury little change
Speaker 1: the yield three point six eight percent. They yield on
Speaker 1: the two year four point to three percent. Nine X
Speaker 1: screwed oils up nine tenths percent or sixty eight cents
Speaker 1: at seventy six dollars ninety one cents a barrel. Comex
Speaker 1: schooled down two tenths per cent or two dollars seventy cents.
Speaker 1: In eighteen twenty two, seventy announced the euro one point
Speaker 1: six one seven against the dollar, British found one point
Speaker 1: two one three two and the n one thirty one
Speaker 1: point eight one. And looking at bit coin this morning,
Speaker 1: it's lower, down about a tenth of upper said it's
Speaker 1: at about sixteen eight hundred fifty dollars and as a
Speaker 1: Bloomberg Business Flash, Nathan thanks Karen, it's five fifty six
Speaker 1: now on Wall Street time for your daily Bloomberg Law Brief,
Speaker 1: exploring legal issues in the news. Today, we look at
Speaker 1: the House January sixth committee recommending the Justice Department prosecute
Speaker 1: former President Donald Trump for four criminal offenses. During a
Speaker 1: year and a half of investigations, the committee interviewed more
Speaker 1: than one thousand witnesses, gathered more than one million documents,
Speaker 1: and issued more than one hundred subpoenas, and today the
Speaker 1: committee is expected to release its full report. For more,
Speaker 1: Bloomberg's June Grosso speaks with former federal prosecutor Elijenigen. You
Speaker 1: mentioned all the evidence that the committee has collected doesn't
Speaker 1: hurt prosecutors to have all that evidence out there with
Speaker 1: the public, potential witnesses, and as you mentioned, Trump's people
Speaker 1: going through it. Yes, and it cuts both ways. On
Speaker 1: the one end, if you're d o J, you're grateful. Wow,
Speaker 1: all this new evidence, almost certainly some that d o
Speaker 1: J didn't already know. And we know that the committee
Speaker 1: got to certain key witnesses before d o J. Kathy
Speaker 1: Hutchinson being one example, Passive Maloney being another example. The
Speaker 1: text from Mark Meadows the Committee got those before d
Speaker 1: o J had them as far as we know. On
Speaker 1: the other hand, as a prosecutor, you never want other
Speaker 1: people interviewing and questioning your key witnesses. You never want
Speaker 1: there to be a massive body of previous statement that
Speaker 1: a witness can be attacked, questioned, cross examined on. And
Speaker 1: that's what's really unusual here, because in any criminal case,
Speaker 1: the prosecution has to turn over and the defense lawyer
Speaker 1: has an obligation to scrutinize any prior statements of the witnesses. Well,
Speaker 1: here there are reams and reams volumes of that material
Speaker 1: that we're going to see fully when it all comes
Speaker 1: out in the next few days, and all of that
Speaker 1: is fair game for defense lawyers to pick apart. So
Speaker 1: this is part of the reason there's a cost to
Speaker 1: the fact that d o J has been largely lagging
Speaker 1: behind Congress. Now there's going to be all this information
Speaker 1: out there, some of which may be used to undermine
Speaker 1: its case, which is outside of DJ's control. So the
Speaker 1: committee said it had sufficient evidence to make its criminal referral,
Speaker 1: But the Justice Department standard to indict is way way
Speaker 1: way higher. Explain that, So d J standard to indict
Speaker 1: according to prosecutorial practice is by the textbook, you can
Speaker 1: get an indictment based on probable cause, which means more
Speaker 1: likely than not, But no responsible prosecutor charge is only
Speaker 1: based on probable cause. The guidance within d o j
Speaker 1: A is you need to be confident that you can
Speaker 1: prove your case beyond a reasonable doubt before you charge it.
Speaker 1: That doesn't mean you only charge assured winners. There's no
Speaker 1: such thing as that, but you need to be satisfied
Speaker 1: the proof beyond a reasonable doubt. That is the highest
Speaker 1: standard in our legal system. And of course it will
Speaker 1: be difficult, extraordinarily difficult in my view, to get a
Speaker 1: jury unanimously to come back and find a not only
Speaker 1: a formal president, but as you say, Joe's somebody who,
Speaker 1: by the time this case ever gets the trial, if
Speaker 1: ever it will be in the heat of election, might
Speaker 1: even be the fund runner, might even be the nominee.
Speaker 1: That is very, very difficult, and I think d o
Speaker 1: j can be faulted for taking this long if they
Speaker 1: are going to indict. I don't think this needed to
Speaker 1: take two years. I don't think they needed to spend
Speaker 1: a year and a half focusing exclusively on the lowest
Speaker 1: level people to the exclusion of higher level people. And
Speaker 1: that's former federal prosecutor Ellie Hoenig speaking with Bloomberg's June Grosso.
Speaker 1: Catch more of that interview, plus analysis of the latest
Speaker 1: legal news by subscribing to the Bloomberg Law Podcast or
Speaker 1: downloading the show at Bloomberg dot com. Slash podcasts and
Speaker 1: attorneys can find exceptional legal research and business development tools
Speaker 1: at Bloomberg Law dot com or on the Bloomberg terminal
Speaker 1: at b Law Go right now. S ANDP futures are
Speaker 1: higher by nineteen points down futures of tune or seven
Speaker 1: NASTAC futures on the rise by forty four points. Send
Speaker 1: your treasury is little changed. The yield three point six
Speaker 1: eight per cent straight ahead. Check on the business headlines
Speaker 1: all the news you need to start your day. Our
Speaker 1: two of Bloomberg Daybreak starts right now.