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

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Speaker 1: day Break for Wednesday, January four three. Coming up this hour,

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Speaker 1: Kevin McCarthy's pushed to become House speaker suffers a historic setback.

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Speaker 1: F d X founder Sam Bankman Fried pleads not guilty

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Speaker 1: to criminal charges. We get more clues on FED policy

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Speaker 1: as minutes from the last meeting are released, and Kathy

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Speaker 1: Wood doubles down on Tesla yet again. The man charged

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Speaker 1: with shooting up a New York subway pleads guilty. Plus

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Speaker 1: day one in the House for in Battle Long Island

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Speaker 1: Representative George Santos, I'm Michael bar More, I'm John Snow

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Speaker 1: towards the latest time to lar Hamlin. The Rangers and

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Speaker 1: Islanders both won biggis losses for St. John's and saton Holm.

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Speaker 1: That's all straight ahead on Bloomberg day Break on Bloomberg

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Speaker 1: even Frio, New York, Bloomberg one, Washington, d C, Bloomberg

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Speaker 1: one h six one, Boston, Bloomberg nine sixty, San Francisco,

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

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Speaker 1: on Bloomberg Radio, dot com, um and via the Bloomberg

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Speaker 1: Business add Good morning, I'm Nathan Hager and I'm Karen Moscow.

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Speaker 1: In the US. Dock Index futures are higher this morning.

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Speaker 1: We check the markets all day long here on Bloomberg

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Speaker 1: SMP futures up about sixteen points or four tenths of

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Speaker 1: upper Cental Future is up a quarter percent or ninety

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Speaker 1: five points, and ASDAG future is up six tensive upper

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Speaker 1: cent or sixty two points. And attend your treasury up

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Speaker 1: twelve thirty seconds. You have three point six and nine

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Speaker 1: percent they yield on the two year four point three

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Speaker 1: four percent. NIMEX screwed oil is down two percent on

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Speaker 1: a dollar fifty three, It's seventy one cents a barrel. Nathan, Karen.

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Speaker 1: We're gonna have more on the markets in a minute,

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Speaker 1: but we begin this morning with political turmoil in Washington.

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Speaker 1: After three rounds of voting, House Republican leader Kevin McCarthy

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Speaker 1: has failed to secure the speakership in the next Congress.

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Speaker 1: Amy Morris has the latest from our Bloomberg newsroom in Washington.

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Speaker 1: McCarthy continued negotiations overnight after House abruptly adjourned when three

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Speaker 1: rounds of balloting failed to elect a Speaker of the House.

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Speaker 1: This is the first time in one hundred years and

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Speaker 1: the second time since the Civil War that a House

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Speaker 1: speaker was not elected on the first ballot. McCarthy says

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Speaker 1: he will not withdraw away brands. So I think the

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Speaker 1: whole perspective and talked Tobody. It's not that far away.

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Speaker 1: Lawmakers will reconvene at noon today for another round of

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Speaker 1: votes to elect a speaker in Washington. I'm anymore as

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Speaker 1: Bloomberg daybreak right, Amy, thank you for this blow to

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Speaker 1: Kevin McCarthy has opened up a rift within the GOP.

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Speaker 1: Former acting White House Chief of Staff mcmilvany is co

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Speaker 1: founder of the House Freedom Conkush. He says Republicans who

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Speaker 1: voted against McCarthy are being hammered in conservative media outlets.

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Speaker 1: They don't want to make it look like the Republicans

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Speaker 1: are complete idiots what it comes to running the country.

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Speaker 1: And that's sort of the message, you know that's coming

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Speaker 1: out of the House today, is that we don't know

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Speaker 1: how to govern and that's not a good thing for

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Speaker 1: our brand. Plumber White House Chief of Staff mcmilvy and

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Speaker 1: he spoke with our Washington corresponded Joe Matthew on Bloomberg

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Speaker 1: Sound on. Catch the show weekdays at five pm Eastern

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Speaker 1: on Bloomberg Radio and hear more of that interview coming

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Speaker 1: up shortly on Bloomberg day Break. Now staying in Washington, Karen,

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Speaker 1: the White House is taking him at Southwest Airlines. The

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Speaker 1: Biden administration says it will hold Southwest responsible for massive

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Speaker 1: flight delays over the holidays. Bloomberg said, Baxter has the story.

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Speaker 1: The White House says Southwest Airlines failed its customers point blank.

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Speaker 1: White House spokeswoman Karine Jean Pierre says all cancelations December

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Speaker 1: were controllable. She says that is according to Southwest. Well,

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Speaker 1: every major airline's face challenges from a pre Christmas storm

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Speaker 1: that that wrecked havoc on the aviation system. All major

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Speaker 1: airlines except for one, which is Southwest. Clearly we're able

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Speaker 1: to recover quickly, and she says the Department of Transportation

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Speaker 1: will make sure Southwest makes their customers whole. In San Francisco,

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

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Speaker 1: it's shaping up to be one of the highest profile

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Speaker 1: white collar fraud cases in years, the case of collapsed

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Speaker 1: crypto exchange f t X is now making its way

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Speaker 1: to the courtroom, and we get the very latest live

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Speaker 1: with Bloombergy Steve Rappaport, Good morning, Steve, Good morning, Karen

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Speaker 1: and Nathan. Disgraced f t X founder Sam Bankman Freed

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Speaker 1: led not guilty to eight criminal charges, including wire fraud

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Speaker 1: and campaign finance violations. Authority say SPF duped investors out

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Speaker 1: of one point eight billion dollars before his crypto company

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Speaker 1: went belly up. Bankman Freed was released on two hundred

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Speaker 1: fifty million dollars veil after being extradited from the Bahamas

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Speaker 1: to the US. Prosecutors want a judge to impose additional

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Speaker 1: bail conditions. Bankman Fried's trial is scheduled to begin in

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Speaker 1: October Live in New York Times. Steve Rappaport Bloomberg Day Break.

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Speaker 1: All right, Steve, thanks, Let's turn back to markets now.

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Speaker 1: Wall Street began the new year very much like two

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Speaker 1: with losses Apple and Tesla led stocks lower, with the

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Speaker 1: SMP five hundred following four tenths percent yesterday. David Died's

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Speaker 1: is Senior Portfolio Strategistic Peapack Private Wealth Management. It is

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Speaker 1: a new calendar year, but it's the same old problems

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Speaker 1: continue to plague us here. I think recession concerns are

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Speaker 1: probably at the top, particularly for equity investors, because uh,

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Speaker 1: that could hurt corporate earnings and that's the lifeblob for stucks.

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Speaker 1: He packed private wealth. David diet says he's concerned there

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Speaker 1: is not concrete evidence that inflation has peaked. And Nathan,

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Speaker 1: we see today how the inflation picture is impacting to

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Speaker 1: use at the Federal Reserve Minutes of the Central Banks

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Speaker 1: December meeting or released this afternoon, and we get more

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Speaker 1: from Bloomberg's any Dale's you dice with inflation stage and

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Speaker 1: a dramatic break at The FED lifted its benchmark interest

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Speaker 1: rate times zero to four point five percent over the

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Speaker 1: course of two By many accounts, the Fed will keep tightening,

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Speaker 1: lifting the federal funds rate to five percent or even higher.

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Speaker 1: Bloomberg economics as key drivers of the inflation rampage, such

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Speaker 1: as rising labor courts, are alive and well fed. Jared

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Speaker 1: rome Palace said, central bankers still have some ways to go.

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Speaker 1: If he helps you, Dinicce Bloomberg day break, All right, Vinnie,

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Speaker 1: thank you. We have a couple inflation ratings out of Europe.

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Speaker 1: This morning, French inflation unexpectedly slowed in December. Consumer prices

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Speaker 1: rose six point seven percent from a year earlier. That's

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Speaker 1: after record increases of seven point one percent in October

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Speaker 1: and November, and food inflation in UK stores jumped to

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Speaker 1: a record high thirteen point three percent last month. And finally,

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Speaker 1: Nathan cathy Wood continues to double down on Tesla. The

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Speaker 1: investor bought more than a hundred and seventy six thousand

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Speaker 1: shares of the electric vehicle producer. The purchase came yesterday

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Speaker 1: as Tesla's stock plunged twelve percent. That's the biggest one

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Speaker 1: day drop in more than two years. Was Exchange traded

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Speaker 1: funds have bought more than nine hundred thirty eight thousand

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Speaker 1: shares of Tesla since October, and this morning, Tesla is

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Speaker 1: up about one and a half percent in early trading,

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Speaker 1: and the futures are moving higher as well. Caring with

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Speaker 1: SMP futures right now up seventeen points, that's a game

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Speaker 1: of about a half percent down, futures up a hundred

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Speaker 1: two points, and NASSEAC futures are higher by sixty nine points.

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Speaker 1: Straight ahead, your latest local headlines and a check of sports.

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Speaker 1: You're listening to Bloomberg Daybreak. Fifty six degrees right now

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Speaker 1: in Central Park. It's gonna be rainy this afternoon Mile

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Speaker 1: two with highs and the low sixties. We'll get down

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Speaker 1: to the upper forties tonight as the rain gets on

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Speaker 1: out of here. It's I'm out to take a look

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Speaker 1: at some of the other stories making news in New

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Speaker 1: York and around the world with Bloomberg's Michael Barr. Good morning, Michael,

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Speaker 1: Good morning. Nathan, the man accused of shooting up a

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Speaker 1: New York City subway car, pleaded guilty yesterday. Frank James

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Speaker 1: shout and moon to ten passengers on the Manhattan bound

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Speaker 1: in train in Brooklyn April twelve. He did not say why,

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Speaker 1: but James conceded, while I was on the train, I

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Speaker 1: fired a weapon. James said he did not intend to

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Speaker 1: kill anyone, but told the judge he was fully aware

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Speaker 1: that deaths could occur as a result of discharging a

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Speaker 1: firearm in such an enclosed space. Prosecutors revealed James had

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Speaker 1: been planning the attack since twenty seventeen, and even conducted

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Speaker 1: a trial run. He paced his life in prison. It

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Speaker 1: was day one. Foreign battled Representative George Santos in Congress

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Speaker 1: and it was far from a house party. When reporters

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Speaker 1: shown questions, do you have any statements? Do you have

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Speaker 1: any statements to your own situates? The Long Island Republican

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Speaker 1: didn't answer questions and once in the House Chamber, sat

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Speaker 1: by himself. Santos admits he lied about his resume, including

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Speaker 1: his education and work. There are calls for him to resign.

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Speaker 1: The man suspected of killing four University of Idaho students

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Speaker 1: could arrive back in Idaho today. Brian Coburger agreed to

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Speaker 1: go volunteerily during a court hearing in Pennsylvania yesterday. Major

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Speaker 1: Christopher Paris is with the Pennsylvania State Police. Arrangements currently

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Speaker 1: are being made to deliver Coburger back to Idaho where

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Speaker 1: he can have continued to process and face these charges.

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Speaker 1: The father of one of the victims, Kay League Gunclave's

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Speaker 1: welcome Coburger's arrest. It felt like a cloud was lifted

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Speaker 1: off of us. It definitely provided relief in comfort to

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Speaker 1: know that things were progressing. Coburger faces four counts of

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Speaker 1: murder and one count of burglary. Emergency crew sifted through

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Speaker 1: the rubble of a bill being struck by Ukrainian rockets,

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Speaker 1: killing at least eighty nine Russian soldiers. It happened in

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Speaker 1: a town partially Russian occupied in the Eastern Danest region.

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Speaker 1: A rule change by the FDA will allow a broader

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Speaker 1: range of pharmacies to fill prescriptions for the abortion pill

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Speaker 1: known as myth of pristone. The pharmacy must meet certain

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Speaker 1: requirements and prescriptions can only be written by certified healthcare providers.

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Speaker 1: Global Who was twenty four hours a day on air

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

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Speaker 1: seven hundred journalist and analysts more than a hundred twenty countries.

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Speaker 1: Michael bar this is Bloomberg. Nathan, Hi, Michael. Thanks, It's

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Speaker 1: time now for the Bloomberg Sports Update, brought to you

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Speaker 1: by Trice State out Here. Good morning, john Stonnshark, Good morning,

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Speaker 1: Nathan Tomorrow. Hamblin's uncle says his nephew is still fighting

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Speaker 1: the Buffalo Bill Safety remains in intensive care and critical

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Speaker 1: condition to Cincinnati Hospital. His heart was apparently resuscitated not

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Speaker 1: only on the field Monday night, but again in the hospital.

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Speaker 1: Reaction yesterday from longtime Steelers coat Mike Tomlin and it's

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Speaker 1: a really personal thing. For me being a Pittsburgher and

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Speaker 1: that young man being a Pittsburgh I've known that guy

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Speaker 1: probably says he was about twelve. UM just got a

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Speaker 1: lot of respective love for him as a human being.

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Speaker 1: Um his commitment to the pursuit of his goals and

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Speaker 1: dream continue to be reports the NFL wanted the game

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Speaker 1: to be resumed. The league insists that wasn't the case.

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Speaker 1: The NFL did announce the game will not be resumed

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Speaker 1: this week. Bills and Bengals will play their games Sunday,

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Speaker 1: makes it seem they'll end up playing one fewer game

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Speaker 1: and a f C seedings will determined by win percentage.

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Speaker 1: Carolina Hurricanes came to the Garden having won eleven a row,

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Speaker 1: didn't trail until KeAndre Miller goal midway through the third period.

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Speaker 1: Rangers scored three in the third. They beat the Kinges

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Speaker 1: five to three. Islanders won six two at Vancouver. Matthew

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Speaker 1: Marzel had a goal to assist Nix home tonight for

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Speaker 1: San Antonio. That Nets bring their twelve game winning streak

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Speaker 1: to Chicago. St. John's Blue Elle lost at home to

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Speaker 1: Marquette nineties to eighty five. In the Red Storm, now

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Speaker 1: just one in four in the Big East, the same

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Speaker 1: record as Seaton Hall, who lost by twenty two at Craighton.

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Speaker 1: The Yankees have hired Bryan sabe into assist GM Brian Cash.

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Speaker 1: Ben Sabian started his career in the Yankee front office

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Speaker 1: and then spent the next thirty years with the San

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Speaker 1: Francisco Giants. John Stashar Bloomberg Sports, Nathan all Right, John Thanking,

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Speaker 1: Bloomberg Sports was brought to you by Audie. Don't let

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Speaker 1: someone else drive off in the Audi model you've always wanted.

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Speaker 1: Visit your local try state Audie dealer to get behind

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Speaker 1: the wheel of yours today, or visit Autie Offers dot

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Speaker 1: com for more information. What comes next in the speakership fight.

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Speaker 1: We'll take a look at that and just ahead as

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Speaker 1: the turmoil in Washington continues. First, markets are moving higher

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Speaker 1: this morning. SMP futures are up nineteen points, STOUT futures

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Speaker 1: up fourteen, and NASTAC futures are hired by seventy eight

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Speaker 1: points ten. Your Treasury is up twelve thirty seconds yield

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Speaker 1: three point six nine percent yield on the two year

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Speaker 1: four point three four NIMEX screweds lower down two percent,

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Speaker 1: seventy five dollars thirty nine cents for a barrel at

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Speaker 1: West Texas Intermediate Live from coast to coast, from New

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Speaker 1: York to San Francisco, Boston to Washington, d C. Nationwide

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Speaker 1: on Sirius x AMP, the Bloomberg Business app, and Bloomberg

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Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hagrin.

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Speaker 1: For the first time in one hundred years, Washington is

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Speaker 1: waking up without a Speaker of the House. Kevin McCarthy's

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Speaker 1: long held goal of taking the gavel has been dealt

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Speaker 1: a serious blow after he lost three votes on the

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Speaker 1: first day of the hundred eighteenth Congress, and lawmakers are

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Speaker 1: going to be back at it today. But this fight

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Speaker 1: could take a bit of time to resolve. Let's bring

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Speaker 1: in Gregg vale Air from War on this, chief US

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Speaker 1: policy strategist at a GF Investments. Greg Happy new year.

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Speaker 1: Not so happy for Kevin McCarthy though, And I know

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Speaker 1: you spent a lot of time making predictions about what's

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Speaker 1: going to happen with policy in Washington. Did you expect

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Speaker 1: something like this for Lena McCarthy. Yeah. I think all

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Speaker 1: of us who followed this intensely thought it would be

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Speaker 1: really close and really controversial. But this defies belief. You

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Speaker 1: can't make this stuff up, Nathan, And this could drag

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Speaker 1: on for a while. Well, how long do you expect

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Speaker 1: it to drag on, greg Ian? You lost three votes yesterday.

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Speaker 1: He didn't seem to gain much support, actually seemed to

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Speaker 1: lose a little bit of support as the voting went on.

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Speaker 1: What comes next, Well, he's putting up a good front.

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Speaker 1: He's talking about prevailing eventually, and he might. He still

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Speaker 1: has a lot of support in the House, but not

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Speaker 1: losing nineteen or twenty votes. You can't do this. So

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Speaker 1: I wrote this morning and my piece that just went out,

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Speaker 1: I think Republicans are going to have to start thinking

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Speaker 1: about a fallback. And that's all that would be. Steve Schaleze,

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Speaker 1: very conservative House member from Louisiana, courageously uh dealt with

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Speaker 1: a gunshot wound in seventeen Scholeeze is liked by virtually

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Speaker 1: all Republicans. And if Kevin McCarthy doesn't start to show

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Speaker 1: better in these votes in the next day or two,

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Speaker 1: you're going to hear the name of Steve Scalise a lot. Now,

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Speaker 1: what did you make of Steve Scalize's speech? Yesterday when

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Speaker 1: the renomination process went on. Well, the thing is they'd

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Speaker 1: make to make this even more complicated. Scalasee is a

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Speaker 1: supporter of McCarthy and is indicated he doesn't want to

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Speaker 1: take the job from McCarthy. The same applies to Jim

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Speaker 1: Jordan's Ohio, who says I want McCarthy. So that makes

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Speaker 1: it even more difficult. But at some point there's going

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Speaker 1: to have to be a reckoning if McCarthy can't get

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Speaker 1: the votes and the party. It's not going to come today,

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Speaker 1: but within the next few days we'll have to start

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Speaker 1: thinking of alternatives. What is it that these nineteen or

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Speaker 1: twenty Republicans who have voted against McCarthy through this process,

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Speaker 1: What is it that they have against him? Why are

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Speaker 1: they so upset at him? Well, that's the question, isn't it.

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Speaker 1: For some of them, it's says personal they feel that

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Speaker 1: McCarthy is not sufficiently conservative. I would argue he certainly is.

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Speaker 1: Uh if some of it is the fact that they

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Speaker 1: feel mcarthy can't be trusted along laundry list of personal grievances.

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Speaker 1: But when they made demands of McCarthy in the last

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Speaker 1: week or so, McCarthy capitulated. He agreed to their demands,

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Speaker 1: yet they still wouldn't go along with him. Yeah, and

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Speaker 1: I guess that raises the question about whether there are

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Speaker 1: any further compromises that Kevin McCarthy could make to try

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Speaker 1: to win over some of these holdouts. Are there? No,

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Speaker 1: I don't. I don't really see very much. I mean,

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Speaker 1: there's always far fetched stuff. Former House Member Fred Utton,

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Speaker 1: who has resigned, might come back and be House speaker.

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Speaker 1: You don't have to be a member of the House

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Speaker 1: to be a House speaker. There's been talking about Donald

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Speaker 1: Trump and all sorts of far fetched scenarios, talk about

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Speaker 1: maybe some Democrats wouldn't vote and that would make to

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Speaker 1: eighteen not a valid number. It goes on or not.

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Speaker 1: I think the most likely scenario is that this continues

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Speaker 1: for not days, but weeks, and it will hurt the

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Speaker 1: Republican brand. I think that will be the dominant argument

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Speaker 1: that other Republicans will start to make it's hurting their brand. Yeah.

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Speaker 1: I guess there's not only the question about whether this

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Speaker 1: hurts the Republican brand, but I mean, no matter who

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Speaker 1: comes out on top, whether it ends up being Kevin

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Speaker 1: McCarthy or one of the other names you mentioned there,

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Speaker 1: Steve Scalise or Jim Jordan's. Where does this leave the speakership?

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Speaker 1: I mean, how much power does the speaker have after

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Speaker 1: this kind of fractusess great point, Nathan, and I think

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Speaker 1: that a mere four or five votes on certain issues

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Speaker 1: could defeat whoever becomes the House Speaker. So it looks

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Speaker 1: to me like a very dysfunctional show. The markets can

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Speaker 1: live with this. There's a lot of other things the

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Speaker 1: markets are focused on now, as you know. But I

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Speaker 1: think by the time we get to the spring or summer,

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Speaker 1: the markets are gonna say, if they can't get a

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Speaker 1: bill done on anything, what about the death ceiling? What

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Speaker 1: about default crisis? That's a story that looms over the

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Speaker 1: next few months. Yeah, I was going to ask you

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Speaker 1: about that in our last thirty seconds here? What does

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Speaker 1: this say about the ability of the new Slim Republican

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Speaker 1: majority to get policy making done? Like those things you

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Speaker 1: mentioned the do matter to markets, the debt ceiling, just

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Speaker 1: getting appropriations done. We have about thirty seconds left, sure, Nathan,

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Speaker 1: and I would say that again, even if McCarthy wins,

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Speaker 1: and there's still a path for him, not a clear path,

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Speaker 1: but whoever wins is going to face tremendous opposition to

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Speaker 1: any kind of legislation, and I think to see the

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Speaker 1: house of this dysfunctional. Sooner or later, it's going to

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Speaker 1: become unnerving for the markets. Could take weeks. That's the

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Speaker 1: call from Greg Valier, chief US policy strategist a GF Investments.

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Speaker 1: Gregg always great to get your insights. Excuse me, thanks

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Speaker 1: so much for being with us this morning. Looking ahead

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Speaker 1: to the market open, U S ANDP futures are higher

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Speaker 1: by seventeen points, Staff futures up a hundred two and

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Speaker 1: NASTAC futures are on the rise by seventy four points.

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Speaker 1: Stand your treasury is up thirteen thirty seconds yield three

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Speaker 1: point six nine percent. We've got much more on the

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Speaker 1: speakership fight throughout the morning. Stay with us on day break, markets,

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

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Speaker 1: Bloomberg dot Com and Bloomberg Business Out and at Bloomberg Victape.

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

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Speaker 1: and ust On. Index futures are on the rise this morning,

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Speaker 1: with SNP futures up seventeen points or four tenths of

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Speaker 1: upper cent Dal futures have ninety eight points or three

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Speaker 1: tents of upper cent and Nastack futures up seventy one

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Speaker 1: points for about seven tenths of upper cent and the

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Speaker 1: ten year treasury of thirteen thirty seconds. You know, three

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Speaker 1: point six eight percent. And that's a Bloomberg Business flash.

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Speaker 1: Now here's Michael Barr with more on what's going on

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Speaker 1: around the world. Michael, good morning, Good morning, Karen. The

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Speaker 1: House will convene today as Republicans try again to elect

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Speaker 1: a speaker for the new Congress. This comes as GOP

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Speaker 1: leader Kevin McCarthy came short of overcoming opposition from the

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Speaker 1: far right of his party after a series of votes.

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Speaker 1: The FDA finalized rule change that increases the availability of

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Speaker 1: abortion pills. Too many more pharmacies, including large change in

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Speaker 1: mail order companies, the NBA, the Celtics and Wizards. Lost

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Speaker 1: in hockey, the Rangers and Islanders. One Capital's lost in notes.

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Speaker 1: Buffalo safety DeMar Hamlin remains in critical condition after a

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Speaker 1: cardiac arrest during Monday night football. Global News twenty four

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Speaker 1: hours a day on air and on Bloomberg Quick Take,

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Speaker 1: powered by more than twenty d journalists and analysts, and

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Speaker 1: more than one hundred twenty countries. Michael Barr And this

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Speaker 1: is Bloomberg. Nathan. Okay, Michael, Thanks, It's three on Wall Street.

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Speaker 1: I'm Nathan Hagar. This is Bloomberg Daybreak, and our focus

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Speaker 1: remains on Washington this morning, where House Republican leader Kevin

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Speaker 1: McCarthy has failed to secure the speakership after three rounds

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Speaker 1: of voting. It marks the first time in a hundred

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Speaker 1: years that a House Speaker was not elected on a

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Speaker 1: first ballot. Mick mulvaney, former White House Acting Chief of

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Speaker 1: Staff and the co founder of the House Freedom Caucus,

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Speaker 1: is weighing in on the developments. Mick mulvaney spoke with

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Speaker 1: our Washington correspondent Joe Matthew late yesterday. Let's listen in.

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Speaker 1: Is it the right thing to adjourn for the night? UM?

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Speaker 1: I don't know. Um yes, because UM, I think if

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Speaker 1: the decision was made in order to bring some pressure

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Speaker 1: on the never Kevin people, I think that was the

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Speaker 1: right decision. They're getting just pilloried, um by talk radio,

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Speaker 1: by cable news, um by social media. The likes of

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Speaker 1: Mark Levin and Laura Ingram are just ripping these people

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Speaker 1: because they don't have a plan um. You know, listen,

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Speaker 1: I don't think those those folks are necessarily huge supporters

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Speaker 1: of Kevin McCarthy. Um, But they don't want to make

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Speaker 1: it look like the Republicans are complete idiots when it

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Speaker 1: comes to running the country. And that's sort of the message,

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Speaker 1: you know, that's coming out of the House today, is

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Speaker 1: that we don't know how to govern and that's not

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Speaker 1: a good thing for our brand. When you zoom out, though,

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Speaker 1: do you see anybody else who could pull over two

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Speaker 1: votes each round? Which Kevin McCarthy did. I realize he's

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Speaker 1: losing support here in these uh these first three rounds.

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Speaker 1: But who else is there now? And that's the question

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Speaker 1: I've asked the never Kevin people. I know thost of

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Speaker 1: these folks are with these folks like guys who who

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Speaker 1: They won't give me a name. You know, they nominated

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Speaker 1: Jim Jordan a couple of times, and Jim was a

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Speaker 1: great guy, and I would vote for Jim Jordan all

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Speaker 1: day long if I were in the House. But Jim

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Speaker 1: can't get elected. He cannot get the two eighteen votes

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Speaker 1: that we expect people are going to need. There's going

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Speaker 1: to be five or six moderates liberals within the Republican Party,

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Speaker 1: for whom Jim is not is just not acceptable. Um.

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Speaker 1: My guess is, if it's not Kevin, it will end

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Speaker 1: up being a compromise candidate more towards the Democrat side

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Speaker 1: of my party, more something um like a Fred Upton.

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Speaker 1: And I've used Fred's name. I used that, you know,

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Speaker 1: with a smile on my face because Fred the friend

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Speaker 1: of mine, but he's a very moderate Republican. Um that

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Speaker 1: that's going to be who you end up with, because

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Speaker 1: it will be a coalition of Republicans and Democrats elected

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Speaker 1: the speaker, not the Republicans. And that's what I fear

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Speaker 1: is the end result here of this opposition to Kevin

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Speaker 1: McCarthy's you get somebody who is even less acceptable of

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Speaker 1: the conservative wing of the party met with the Shane

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Speaker 1: pick another unity candidate. If there's such a thing that

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Speaker 1: emerges in the early stages of voting tomorrow, it's the

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Speaker 1: kind of it's the conversations I've been trying to drive

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Speaker 1: today and I'm talking to say Dan Bishop Dant, defriend

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Speaker 1: of mine, went to law school together. Um, he's got

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Speaker 1: the districtred across where I live back home, and I

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Speaker 1: know Dan, know him very well, I'm asking Dan, you know,

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Speaker 1: give me a name, and he won't give me a name.

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Speaker 1: There there there, there is no name. I don't think.

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Speaker 1: I think they're playing checkers. They really don't like Kevin McCarthy. Um,

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Speaker 1: and that's about it. Um, Mick. I know this is

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Speaker 1: more complicated than it being a so called freedom caucus thing.

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Speaker 1: What is the problem with Kevin McCarthy. It's let's be clear,

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Speaker 1: it's not a freedom caucus thing. The majority of the

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Speaker 1: Freedom Caucus voted for Kevin McCarthy three times today. So no,

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Speaker 1: a lot of these folks, not all of them. A

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Speaker 1: lot of these folks were opposed Kevin are in the

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Speaker 1: Freedom Caucus. But this is not a freedom caucus sort

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Speaker 1: of rebellion. I don't know what the objection is, you know.

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Speaker 1: And I talked to m Ralph Norman, my congressman the

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Speaker 1: South now, and I said, you know, why are you

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Speaker 1: doing this, because well, we're losing our country. Like, okay,

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Speaker 1: I guess I agree with that, because we're you know,

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Speaker 1: we're drowning it dead. I'm like, I get that, but

427
00:22:54,520 --> 00:22:57,440
Speaker 1: tell me how you know not voting for Kevin McCarthy

428
00:22:57,480 --> 00:23:00,359
Speaker 1: solves that. And there's no response to that, just a

429
00:23:00,359 --> 00:23:03,160
Speaker 1: lot of personal animals. But I don't understand, and that's

430
00:23:03,200 --> 00:23:05,600
Speaker 1: not a good reason. Sometimes you have to put your

431
00:23:05,600 --> 00:23:08,639
Speaker 1: personal preferences aside and you know, vote your head and

432
00:23:08,640 --> 00:23:10,520
Speaker 1: not your heart, and I just don't see them doing

433
00:23:10,520 --> 00:23:13,280
Speaker 1: that right now. That's former White House Chief of Staff

434
00:23:13,359 --> 00:23:16,520
Speaker 1: co founder of the House Freedom Caucus mcmulvaney speaking with

435
00:23:16,560 --> 00:23:19,880
Speaker 1: our Washington correspondent Joe Matthew on Bloomberg Sound On. We're

436
00:23:19,880 --> 00:23:21,720
Speaker 1: gonna bring you more of that interview coming up later,

437
00:23:21,720 --> 00:23:24,760
Speaker 1: and make sure to catch sound on weeknights on Bloomberg

438
00:23:24,880 --> 00:23:28,000
Speaker 1: Radio at five pm Wall Street Time. Download the show

439
00:23:28,160 --> 00:23:31,399
Speaker 1: wherever you get your podcasts. Bloomberg Daybreak is brought to

440
00:23:31,400 --> 00:23:34,639
Speaker 1: you by Innovation Refunds. That small business is impacted by

441
00:23:34,640 --> 00:23:38,399
Speaker 1: the COVID nineteen pandemic may qualify for the Employee Retention

442
00:23:38,480 --> 00:23:41,480
Speaker 1: Credit Let Innovation Refunds do the work to find out

443
00:23:41,480 --> 00:23:44,560
Speaker 1: now if your organization qualifies for e r C assistance.

444
00:23:44,840 --> 00:23:47,760
Speaker 1: They've already held businesses claim more than two billion dollars

445
00:23:48,080 --> 00:23:52,280
Speaker 1: in payroll tax refunds. Learn more at get refunds dot com.

446
00:23:52,520 --> 00:23:55,439
Speaker 1: Got your morning's top stories, local headlines, and a checkup

447
00:23:55,440 --> 00:24:01,080
Speaker 1: markets Straight Ahead first, Today's Bloomberg weather forecast. Cloudy skies

448
00:24:01,080 --> 00:24:03,280
Speaker 1: across the Tri State area. Today, HAIs will reach an

449
00:24:03,359 --> 00:24:06,720
Speaker 1: unusually warm sixty to sixty five this afternoon. We'll see

450
00:24:06,760 --> 00:24:09,160
Speaker 1: some rain developing across the area of this safternoon as well.

451
00:24:09,640 --> 00:24:12,959
Speaker 1: Rain ends tonight, lows forty five to fifty, lots of clouds.

452
00:24:12,960 --> 00:24:15,000
Speaker 1: Tomorrow cool off a little bit. Highs will be fifty

453
00:24:15,040 --> 00:24:17,679
Speaker 1: to fifty five. It will turn partly Sunday for Friday.

454
00:24:17,760 --> 00:24:21,160
Speaker 1: His Friday between forty five and fifty UM. Rob Caroline

455
00:24:21,240 --> 00:24:26,399
Speaker 1: with your three day forecast on Bloomberg eleven three oh

456
00:24:26,960 --> 00:24:31,480
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.

457
00:24:31,600 --> 00:24:36,280
Speaker 1: Bloomberg Evan Freed to Washington, d C. Bloomberg one to Boston,

458
00:24:36,359 --> 00:24:39,800
Speaker 1: Bloomberg one, O six one to San Francisco, Bloomberg nine

459
00:24:39,840 --> 00:24:43,080
Speaker 1: sixty to the country, Sirius XM CHO one nineteen and

460
00:24:43,160 --> 00:24:46,560
Speaker 1: around the globe, the Bloomberg Business at and Bloomberg Radio

461
00:24:46,640 --> 00:24:55,359
Speaker 1: dot Com. This is Bloomberg Daybreak. We're coming up on

462
00:24:55,440 --> 00:24:57,760
Speaker 1: five thirty on Wall Street. Good morning, I'm Nathan Hager

463
00:24:58,040 --> 00:25:00,400
Speaker 1: and I'm Karen Moscow, and we are just about four

464
00:25:00,440 --> 00:25:02,800
Speaker 1: hours away from the open of US trading. Let's get

465
00:25:02,840 --> 00:25:04,119
Speaker 1: you up to date on the news you need to

466
00:25:04,119 --> 00:25:06,439
Speaker 1: know at this hour. We begin in Washington, where a

467
00:25:06,440 --> 00:25:10,440
Speaker 1: House Republican leader, Kevin McCarthy, has failed to secure the speakership.

468
00:25:10,720 --> 00:25:13,160
Speaker 1: The blow to McCarthy and the GOP has drawn sharp

469
00:25:13,200 --> 00:25:17,520
Speaker 1: criticism from conservative media. Mcmilvany, former acting White House Chief

470
00:25:17,520 --> 00:25:19,920
Speaker 1: of Staff and co founder of the House Freedom Caucus,

471
00:25:20,080 --> 00:25:22,560
Speaker 1: because it could open the door for a Democrat friendly

472
00:25:22,600 --> 00:25:25,840
Speaker 1: House speaker. My guess is, if it's not Kevin, it

473
00:25:25,840 --> 00:25:28,679
Speaker 1: will end up being a compromise candidate more towards the

474
00:25:28,720 --> 00:25:31,520
Speaker 1: Democrat side of my party, more something like a thread

475
00:25:31,520 --> 00:25:33,560
Speaker 1: out in And I've used Fread's name. You said, you

476
00:25:33,560 --> 00:25:35,080
Speaker 1: know when a smile on my face spread, the friend

477
00:25:35,119 --> 00:25:37,880
Speaker 1: of my But he's a very moderate Republican. Mcmilvany spoke

478
00:25:37,880 --> 00:25:40,919
Speaker 1: at our Washington corresponding Joe Matthew on Bloomberg Sound on

479
00:25:41,080 --> 00:25:43,879
Speaker 1: Catch the program weekdays at five pm Eastern on Bloomberg

480
00:25:44,000 --> 00:25:47,480
Speaker 1: Radio and staying in Washington, the Biden administration's taking him

481
00:25:47,480 --> 00:25:50,760
Speaker 1: at Southwest Airlines. White House Press Secretary Karine John Pierre

482
00:25:50,800 --> 00:25:54,040
Speaker 1: says the Department of Transportation will hold Southwest accountable for

483
00:25:54,080 --> 00:25:58,000
Speaker 1: holiday flight delays tied to inclement weather. All major airlines

484
00:25:58,040 --> 00:26:01,960
Speaker 1: except for one, which is Southwest. Clearly we're able to

485
00:26:02,240 --> 00:26:05,680
Speaker 1: recover quickly. Press Secretary Kerine John Pierre says the White

486
00:26:05,680 --> 00:26:08,720
Speaker 1: House wants Southwest to cover rebookings, hotel rooms, and other

487
00:26:08,760 --> 00:26:11,560
Speaker 1: amenities well. Turning to Crypto Now, Nathan, it could be

488
00:26:11,560 --> 00:26:14,879
Speaker 1: one of the highest profile white collar fraud trials in years.

489
00:26:14,920 --> 00:26:17,359
Speaker 1: The case of collapse Crypto Exchange f t X is

490
00:26:17,359 --> 00:26:19,520
Speaker 1: now making its way to the court room Bloomberg Steve

491
00:26:19,600 --> 00:26:22,040
Speaker 1: Rappaport joins US Live with the latest. Good Morning Steve,

492
00:26:22,119 --> 00:26:24,920
Speaker 1: Good Morning, Karen, and Nathan. Sam Bankman Freed will stand

493
00:26:25,000 --> 00:26:28,480
Speaker 1: trial in October on eight federal charges, including wire fraud

494
00:26:28,520 --> 00:26:31,960
Speaker 1: and campaign finance violations SPF pled not guilty on all

495
00:26:32,000 --> 00:26:34,880
Speaker 1: counts yesterday. Prior to his arrest last month, Bankman Freed

496
00:26:34,920 --> 00:26:38,840
Speaker 1: admitted to making mistakes but denied knowingly committing fraud. Prosecutors

497
00:26:38,840 --> 00:26:40,800
Speaker 1: say they expect to lay out their case against the

498
00:26:40,800 --> 00:26:44,000
Speaker 1: disgraced FTX founder in the next four weeks. Bankman Freed

499
00:26:44,040 --> 00:26:47,320
Speaker 1: also faces civil action from government regulators. Those charges will

500
00:26:47,359 --> 00:26:49,600
Speaker 1: likely be on hold while the criminal case plays out.

501
00:26:49,720 --> 00:26:52,879
Speaker 1: Live in New York. I'm Steve Rappaport Bloomberg Daybreak. All right, Steve,

502
00:26:52,880 --> 00:26:55,040
Speaker 1: thanks training to markets now. Wall Street began the new

503
00:26:55,119 --> 00:26:58,920
Speaker 1: year very much like two with losses. Inflation concerns remain

504
00:26:58,960 --> 00:27:00,920
Speaker 1: in focus. Along with today is release of minutes from

505
00:27:00,920 --> 00:27:03,960
Speaker 1: the FED. Aaron Gibbs, chief Investment Officered main Street Asset

506
00:27:04,000 --> 00:27:06,560
Speaker 1: Management says more down days for growth stocks could be

507
00:27:06,600 --> 00:27:10,199
Speaker 1: on the way as long as we're uncertain about the future.

508
00:27:10,359 --> 00:27:12,280
Speaker 1: It's those growth stocks that are going to take the

509
00:27:12,320 --> 00:27:14,760
Speaker 1: biggest hits, and your sense of sectors that are going

510
00:27:14,800 --> 00:27:17,200
Speaker 1: to tend to hold up better. Aaron Gibbs with main

511
00:27:17,240 --> 00:27:19,720
Speaker 1: Street Asset Management thanks, growth stocks carry a lot of

512
00:27:19,800 --> 00:27:21,879
Speaker 1: risks at the moment, and Naan do we have a

513
00:27:21,880 --> 00:27:24,919
Speaker 1: couple of key inflation readings out of Europe today. French

514
00:27:24,960 --> 00:27:28,400
Speaker 1: CPI for December unexpectedly dipped, coming in at six point

515
00:27:28,480 --> 00:27:31,760
Speaker 1: seven percent. The same time though, UK food inflation jumped

516
00:27:31,760 --> 00:27:35,560
Speaker 1: to a record high a thirteen point three percent last month.

517
00:27:35,840 --> 00:27:38,560
Speaker 1: And futures this morning are on the rise. SNP futures

518
00:27:38,640 --> 00:27:41,440
Speaker 1: up about seventeen points a four tens of upper cent

519
00:27:41,520 --> 00:27:43,840
Speaker 1: Dow futures up three tens of upper cent or ninety

520
00:27:43,880 --> 00:27:46,480
Speaker 1: six points and NAS dec futures have seven tens of

521
00:27:46,560 --> 00:27:49,439
Speaker 1: upper cent or seventy one points. Ten. Your treasury up

522
00:27:49,440 --> 00:27:52,720
Speaker 1: twelve thirty seconds here three point six and nine percent

523
00:27:52,800 --> 00:27:56,200
Speaker 1: straight ahead. We have your latest local headlines, plus a

524
00:27:56,320 --> 00:28:03,960
Speaker 1: check of sports, and this is Bloomberg Queks Karen's five

525
00:28:04,040 --> 00:28:06,560
Speaker 1: thirty one on Wall Street and Michael Bars here with

526
00:28:06,600 --> 00:28:09,560
Speaker 1: those headlines from New York and around the world. Morning Michael,

527
00:28:09,680 --> 00:28:12,280
Speaker 1: Good morning. Nathan the New York City native who saw

528
00:28:12,320 --> 00:28:16,400
Speaker 1: smoke canisters inside a pack Brooklyn subway car before opening

529
00:28:16,440 --> 00:28:20,480
Speaker 1: fire on commuters last year, has pleaded guilty to terrorism

530
00:28:20,560 --> 00:28:23,919
Speaker 1: and gun charges. Frank James appeared in federal record in

531
00:28:23,920 --> 00:28:27,720
Speaker 1: Brooklyn yesterday. James faces a sentence up to life in prison.

532
00:28:28,000 --> 00:28:33,000
Speaker 1: Republican Congressman George Santos did not answer any questions shouted

533
00:28:33,000 --> 00:28:35,720
Speaker 1: by reporters as he spent day one in the House.

534
00:28:36,160 --> 00:28:39,479
Speaker 1: Once in the chamber, Santos sat alone. The Long Island

535
00:28:39,480 --> 00:28:43,040
Speaker 1: representative admitted helied about his resume while on the campaign trail.

536
00:28:43,520 --> 00:28:46,560
Speaker 1: During her briefing, White House Press Secretary Kerin Jean Pierre

537
00:28:46,680 --> 00:28:51,200
Speaker 1: commented on Santos, this is something that the House Republicans

538
00:28:51,560 --> 00:28:54,239
Speaker 1: the Republican Conference, they will have to decide what they

539
00:28:54,280 --> 00:28:57,880
Speaker 1: owe to the American people in terms of a standards

540
00:28:57,880 --> 00:29:00,920
Speaker 1: and service. That is something that they have to decide on.

541
00:29:01,400 --> 00:29:04,560
Speaker 1: There are growing calls for Santos to step down the

542
00:29:04,560 --> 00:29:07,280
Speaker 1: man charge in the November murders or for University of

543
00:29:07,320 --> 00:29:10,360
Speaker 1: Idaho students. Waved his right to an extradition hearing in

544
00:29:10,440 --> 00:29:13,640
Speaker 1: Pennsylvania that will speed up twenty eight year old Bryan

545
00:29:13,720 --> 00:29:18,720
Speaker 1: Coburger's transferred to Moscow, Idaho, to stand trial. Colonel Robert

546
00:29:18,720 --> 00:29:21,640
Speaker 1: Evanchick of the Pennsylvania State Police, My heart goes out

547
00:29:21,720 --> 00:29:25,840
Speaker 1: to the families of the victims, their friends, the community

548
00:29:25,840 --> 00:29:30,480
Speaker 1: of Moscow, and the University of Idaho. Police are said

549
00:29:30,520 --> 00:29:33,040
Speaker 1: to have link Coburger to the crime scene true d NA.

550
00:29:33,480 --> 00:29:37,560
Speaker 1: The Russian military says unauthorized use of cell phones by

551
00:29:37,640 --> 00:29:41,000
Speaker 1: Russian soldiers led to a deadly Ukrainian rocket attack on

552
00:29:41,080 --> 00:29:44,240
Speaker 1: the facility where they were stationed. It raised the death

553
00:29:44,280 --> 00:29:47,479
Speaker 1: toll from the weekend attack to nine. Meanwhile, State Department

554
00:29:47,480 --> 00:29:50,560
Speaker 1: spokesman Ed Price says that the US will support Ukraine.

555
00:29:50,760 --> 00:29:53,320
Speaker 1: We will stand with Ukraine for as long as it takes.

556
00:29:53,880 --> 00:29:56,880
Speaker 1: As we have said President Putin can choose to end

557
00:29:56,880 --> 00:29:59,880
Speaker 1: this war. Today, Global News twenty four hours a day

558
00:30:00,000 --> 00:30:02,040
Speaker 1: in the air and on Bloomberg Quick Take Power about

559
00:30:02,040 --> 00:30:04,480
Speaker 1: more than twenty seven journalists, analysts more than a hundred,

560
00:30:04,480 --> 00:30:07,600
Speaker 1: twenty countries. Michael bar this is Bloomberg, Nathan, Thank you, Michael.

561
00:30:12,440 --> 00:30:14,720
Speaker 1: Three on Wall Street time for the Bloomberg Sports Update,

562
00:30:14,760 --> 00:30:17,280
Speaker 1: brought to you by Fries stayed out. He Here's Jon Stenshower.

563
00:30:17,400 --> 00:30:21,120
Speaker 1: Thanks Nathan. Buffalo Bill safety Damar Hamlin remains in intensive

564
00:30:21,120 --> 00:30:24,000
Speaker 1: care and critical condition. His uncle says Hamlin had his

565
00:30:24,040 --> 00:30:27,280
Speaker 1: heart resuscitated twice Monday night, once on the field and

566
00:30:27,320 --> 00:30:30,360
Speaker 1: then again in the hospital. The family released a statement

567
00:30:30,400 --> 00:30:33,520
Speaker 1: expressing its gratitude for the outpouring of support. Hamlin has

568
00:30:33,520 --> 00:30:35,640
Speaker 1: a go fund me for a toy drive, and in

569
00:30:35,720 --> 00:30:39,280
Speaker 1: twenty four hours it went from having hundred dollars in

570
00:30:39,360 --> 00:30:42,280
Speaker 1: it to now more than five million. Rangers also the

571
00:30:42,280 --> 00:30:44,479
Speaker 1: hottest team in hockey, Carolina had won eleven a row,

572
00:30:44,560 --> 00:30:46,320
Speaker 1: brought a lead to the third period at the guard

573
00:30:46,440 --> 00:30:49,560
Speaker 1: Artemi Panair and tied the game thirty second six seconds

574
00:30:49,600 --> 00:30:51,960
Speaker 1: into the third, and then midway through the way by

575
00:30:51,960 --> 00:30:54,560
Speaker 1: Sleep and Taco gets it back behind that drives to

576
00:30:54,600 --> 00:30:56,560
Speaker 1: the edge of the traffic zoid to the far circle

577
00:30:56,720 --> 00:31:01,440
Speaker 1: cockle too points of Bataafl the plastic store. This could

578
00:31:01,440 --> 00:31:04,920
Speaker 1: have been deflected as well for three Rangers there. Firstly

579
00:31:05,040 --> 00:31:07,480
Speaker 1: to the game espn KeAndre Miller got the goal and

580
00:31:07,520 --> 00:31:09,320
Speaker 1: the Rangers at an empty net or they beat the

581
00:31:09,400 --> 00:31:12,000
Speaker 1: Hurricanes five to three. Islanders three goals in both the

582
00:31:12,080 --> 00:31:15,200
Speaker 1: second and third periods and they won six two at Vancouver.

583
00:31:15,560 --> 00:31:18,240
Speaker 1: The season began well for St. John's Red Storm. We're

584
00:31:18,240 --> 00:31:20,160
Speaker 1: off to a eight no start, eleven and one, but

585
00:31:20,280 --> 00:31:23,240
Speaker 1: a fourth strade Biggias lost, Marquette won the second half

586
00:31:23,600 --> 00:31:26,880
Speaker 1: fifty thirty seven, took the game nineties six to eighty five.

587
00:31:26,920 --> 00:31:30,600
Speaker 1: Seaton Hall lost by twenty two at Creighton. Brian Sabian

588
00:31:30,640 --> 00:31:33,160
Speaker 1: began his career in the Yankee front office, oversaw the

589
00:31:33,280 --> 00:31:35,840
Speaker 1: drafting of the Yankee Corps four that led them to

590
00:31:35,880 --> 00:31:38,600
Speaker 1: four championships. He then spent thirty years with the Giants.

591
00:31:38,680 --> 00:31:41,520
Speaker 1: Now Sabian returning to the Yanks as an assistant to

592
00:31:41,640 --> 00:31:45,800
Speaker 1: g M. Brian Cashman, John Stashant Bloomberg Sports Nathan, Thank you, John,

593
00:31:45,840 --> 00:31:48,960
Speaker 1: and The Bloomberg Sports Report was brought to you by Audie.

594
00:31:49,040 --> 00:31:51,680
Speaker 1: Don't let someone else drive off in the Outye model

595
00:31:52,160 --> 00:31:55,320
Speaker 1: you've always wanted. Visit your local Tri State Audie dealer

596
00:31:55,360 --> 00:31:57,800
Speaker 1: to get behind the wheel of yours today, or visit

597
00:31:57,840 --> 00:32:03,160
Speaker 1: Outie Offers dot com for more information on Wall Street

598
00:32:03,240 --> 00:32:05,360
Speaker 1: time for the Tri State Business Report, and here with

599
00:32:05,400 --> 00:32:08,920
Speaker 1: that is, Bloomberg said. Corey Manhattan's home buying market weekend

600
00:32:08,960 --> 00:32:11,640
Speaker 1: at the end of last year, but did not signal

601
00:32:11,720 --> 00:32:14,680
Speaker 1: a deep freeze heading into the new year. Co Ops

602
00:32:14,760 --> 00:32:17,080
Speaker 1: and condos traded for a media and a one point

603
00:32:17,080 --> 00:32:19,400
Speaker 1: one million in the fourth quarter of five and a

604
00:32:19,440 --> 00:32:22,840
Speaker 1: half percent drop from twenty one, according to appraiser Miller

605
00:32:22,960 --> 00:32:26,480
Speaker 1: Samuel in brokerage Douglas Element real Estate. The New York

606
00:32:26,520 --> 00:32:30,280
Speaker 1: State Gambling Facility Location Board has approved a five hundred

607
00:32:30,280 --> 00:32:33,520
Speaker 1: million dollar license fee for each of the three casinos

608
00:32:33,560 --> 00:32:36,200
Speaker 1: being proposed for the New York City area. The three

609
00:32:36,240 --> 00:32:38,800
Speaker 1: members of the panel also voted at a meeting Tuesday

610
00:32:39,040 --> 00:32:42,480
Speaker 1: to approve a minimum five hundred million dollar capital investment

611
00:32:42,560 --> 00:32:46,200
Speaker 1: by the license winners. Atlantic City's Hard Rock Casino has

612
00:32:46,240 --> 00:32:49,320
Speaker 1: hired a new management team as the property pushes for

613
00:32:49,320 --> 00:32:52,640
Speaker 1: an even greater share of the market. George Goldoff was

614
00:32:52,760 --> 00:32:57,120
Speaker 1: named president of the casino. Mike Sampson was named g M.

615
00:32:57,160 --> 00:32:59,840
Speaker 1: Both men are expected to start within the next few weeks.

616
00:33:00,120 --> 00:33:03,840
Speaker 1: That your Bloomberg Drying State Business Report. I'm cory alright,

617
00:33:04,080 --> 00:33:06,840
Speaker 1: thank you. It's five thirty six on Wall Street. The

618
00:33:06,920 --> 00:33:11,000
Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was

619
00:33:11,040 --> 00:33:14,600
Speaker 1: written by the Bloomberg Editorial Board. During the chaotic US

620
00:33:14,680 --> 00:33:19,160
Speaker 1: withdrawal from Afghanistan and One, the Biden administration granted so

621
00:33:19,240 --> 00:33:23,600
Speaker 1: called humanitarian parole to more than seventy thousand Afghan evacuees

622
00:33:23,920 --> 00:33:27,520
Speaker 1: to allow their entry into the US. This designation expires

623
00:33:27,560 --> 00:33:31,400
Speaker 1: after two years. Without an adjustment in their immigration status,

624
00:33:31,440 --> 00:33:34,120
Speaker 1: these Afghans will have to request asylum to stay in

625
00:33:34,160 --> 00:33:38,920
Speaker 1: the US, a lengthy, confusing, and expensive process. The bipartisan

626
00:33:39,000 --> 00:33:43,040
Speaker 1: Afghan Adjustment Act, which lawmakers introduced last August, provides a

627
00:33:43,080 --> 00:33:45,640
Speaker 1: common sense solution, but Congress left it out of the

628
00:33:45,680 --> 00:33:48,440
Speaker 1: four thousand page spending bill President Joe Biden signed in

629
00:33:48,480 --> 00:33:52,000
Speaker 1: the law last week. That isn't just cruel, it's damaging

630
00:33:52,040 --> 00:33:55,760
Speaker 1: to national security. Allowing this issue to slide further will

631
00:33:55,840 --> 00:34:00,560
Speaker 1: undermine American credibility and confirm accusations of US hypocrite see

632
00:34:00,720 --> 00:34:05,040
Speaker 1: the eighteenth Congress should resolve this matter without delay. Anything

633
00:34:05,120 --> 00:34:08,320
Speaker 1: less would be a betrayal of America's allies and ideals.

634
00:34:08,680 --> 00:34:11,880
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For

635
00:34:11,960 --> 00:34:14,680
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash

636
00:34:14,680 --> 00:34:17,240
Speaker 1: opinion or op i and go on the Bloomberg terminal.

637
00:34:17,440 --> 00:34:20,560
Speaker 1: This has been Bloomberg opinion, and you can hear Bloomberg

638
00:34:20,600 --> 00:34:24,160
Speaker 1: opinion editorials every weekday at this time. Terminal customers can

639
00:34:24,160 --> 00:34:27,480
Speaker 1: read more at O, P, I N GO. Another story

640
00:34:27,520 --> 00:34:30,520
Speaker 1: we're watching this morning is another policy shift at Twitter,

641
00:34:30,640 --> 00:34:34,320
Speaker 1: one of many since Elon Muska control. The company plans

642
00:34:34,320 --> 00:34:37,719
Speaker 1: to relax a three year ban on political advertising to

643
00:34:37,800 --> 00:34:42,560
Speaker 1: quote facilitate public conversation around important topics. Further details have

644
00:34:42,680 --> 00:34:45,400
Speaker 1: yet to be announced, but Twitter imposed its ban in

645
00:34:45,480 --> 00:34:49,680
Speaker 1: ten At the time said political message reach should be earned,

646
00:34:50,120 --> 00:34:54,919
Speaker 1: not bought. Futures are moving higher, SMP futures up thirteen points,

647
00:34:54,920 --> 00:34:57,520
Speaker 1: staff futures up seventy six and nastaic futures are hired

648
00:34:57,560 --> 00:35:03,480
Speaker 1: by fifty eight points. This is Bloomberg Markets headlines and

649
00:35:03,600 --> 00:35:06,879
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,

650
00:35:07,000 --> 00:35:10,040
Speaker 1: the Bloomberg Business at and at Bloomberg quick Take. This

651
00:35:10,480 --> 00:35:19,160
Speaker 1: is a Bloomberg Business flash and I'm Karen Moscow and

652
00:35:19,239 --> 00:35:22,760
Speaker 1: stocks are rising with US dot Index futures as favorable

653
00:35:22,840 --> 00:35:26,120
Speaker 1: news reports from Shina and data from Europe boost ricks

654
00:35:26,239 --> 00:35:29,319
Speaker 1: appetite and the dollars following treasuries rising. We checked the

655
00:35:29,320 --> 00:35:31,320
Speaker 1: markets all day long here on Bloomberg s and P

656
00:35:31,520 --> 00:35:34,560
Speaker 1: futures up ten points or at quarter percent down Future

657
00:35:34,600 --> 00:35:36,880
Speaker 1: is up two tens of upper cent or sixty one points,

658
00:35:36,880 --> 00:35:39,640
Speaker 1: and a Stagg futures up four tens of uppercent or

659
00:35:39,719 --> 00:35:42,239
Speaker 1: forty two points. The decks in Germany's at one point

660
00:35:42,239 --> 00:35:45,080
Speaker 1: two percent. Ten year treasury up eleven thirty seconds. You

661
00:35:45,080 --> 00:35:47,120
Speaker 1: have three point six nine percent they yield on the

662
00:35:47,160 --> 00:35:50,080
Speaker 1: two year four point three four percent. Nin mex scrud

663
00:35:50,160 --> 00:35:52,720
Speaker 1: oil is down two point percent at a dollar seventy

664
00:35:52,719 --> 00:35:55,040
Speaker 1: at seventy five dollars twenty three cents of barrel Co

665
00:35:55,200 --> 00:35:57,719
Speaker 1: Max School up one percent or eighteen dollars ten cents.

666
00:35:57,719 --> 00:36:00,680
Speaker 1: At eighteen sixty four. Ten announced that euro one point

667
00:36:01,400 --> 00:36:03,719
Speaker 1: five against the dollar. British found one point two zero

668
00:36:03,840 --> 00:36:06,640
Speaker 1: seven five the n one thirty point five zero, and

669
00:36:06,680 --> 00:36:09,360
Speaker 1: bitcoin is up more than one percent. It's at about

670
00:36:09,360 --> 00:36:12,800
Speaker 1: sixteen thousand, eight hundred dollars. And that's a Bloomberg business flash.

671
00:36:12,800 --> 00:36:14,960
Speaker 1: Now here's Michael Barr with more on what's going on

672
00:36:15,000 --> 00:36:17,279
Speaker 1: around the world, Michael Karen. For the first time in

673
00:36:17,320 --> 00:36:20,440
Speaker 1: a hundred years, members of Congress failed to elect a

674
00:36:20,520 --> 00:36:24,040
Speaker 1: House speaker yesterday on day one, Able Reagan ben Today

675
00:36:24,040 --> 00:36:26,719
Speaker 1: at noon, the man running for the speakership, Republican leader

676
00:36:26,760 --> 00:36:30,720
Speaker 1: Kevin McCarthy, was rebuffed three times. The Mega Millions jackpot

677
00:36:30,760 --> 00:36:33,439
Speaker 1: increased to an estimated nine hundred forty million dollars after

678
00:36:33,480 --> 00:36:37,680
Speaker 1: another drawing resulted in all losers not a single grand

679
00:36:37,719 --> 00:36:40,680
Speaker 1: prize winner. In the NBA, the Celtics and Wizards lost

680
00:36:40,719 --> 00:36:43,279
Speaker 1: in hockey. The Rangers and Islanders one Capitals lost in

681
00:36:43,320 --> 00:36:46,360
Speaker 1: O t to the Sabers five four. Buffalo safety to

682
00:36:46,480 --> 00:36:50,080
Speaker 1: Mar Hamlin remains in critical condition after he collapsed during

683
00:36:50,080 --> 00:36:53,400
Speaker 1: a Monday night football game of cardiac Arrest. Global News

684
00:36:53,400 --> 00:36:55,720
Speaker 1: twenty four hours a day on air and all Bloomberg

685
00:36:55,760 --> 00:36:57,920
Speaker 1: Quick Take Power by more than twenty seven hundred journalist

686
00:36:57,960 --> 00:37:00,680
Speaker 1: analysts more than a hundred twenty countries. Michael Barr, this

687
00:37:00,760 --> 00:37:03,400
Speaker 1: is Bloomberg. Nick, all right, we'll all pulling for DeMar Hamlin.

688
00:37:03,480 --> 00:37:06,800
Speaker 1: Thank you, Michael. Appreciate that it is two on Wall Street.

689
00:37:06,840 --> 00:37:10,200
Speaker 1: This is Bloomberg Daybreak. I'm Nathan Hagar along with Karen Moscow.

690
00:37:10,520 --> 00:37:12,600
Speaker 1: Take a look at some of the other stories making

691
00:37:12,600 --> 00:37:16,600
Speaker 1: news this morning. Economists anticipate another round of week data

692
00:37:16,800 --> 00:37:20,160
Speaker 1: in today's manufacturing report from the Institute for Supply Management.

693
00:37:20,160 --> 00:37:24,200
Speaker 1: We get those numbers ten am, Wall Street Time. Bloomberg's

694
00:37:24,239 --> 00:37:27,600
Speaker 1: Vinny del Judace has more. The prior report covering November

695
00:37:27,640 --> 00:37:30,480
Speaker 1: showed the I s M factory and Dick signal contraction

696
00:37:30,560 --> 00:37:34,560
Speaker 1: for the first time since May. Bloomberg Economics. As today's

697
00:37:34,640 --> 00:37:38,399
Speaker 1: data quick suggest manufacturers are bracing for weaker demand as

698
00:37:38,480 --> 00:37:42,000
Speaker 1: federal reserve interest rates take hold. December's I s M

699
00:37:42,080 --> 00:37:45,200
Speaker 1: report could also signal prices are starting to moderate somewhat

700
00:37:45,320 --> 00:37:47,759
Speaker 1: after the US inflation rate hit a forty year high.

701
00:37:47,800 --> 00:37:51,840
Speaker 1: In two Benny del Judace Bloomberg day Break, Right, Benny

702
00:37:51,920 --> 00:37:54,200
Speaker 1: things so, we also get minutes from the FENS latest

703
00:37:54,200 --> 00:37:57,160
Speaker 1: meeting at two pm Eastern today. Investors will be looking

704
00:37:57,200 --> 00:38:00,440
Speaker 1: for any language that may handle the path of policy. Meantime,

705
00:38:00,480 --> 00:38:03,640
Speaker 1: former FED Chairman Alan Greenspan is weighing in on the outlook.

706
00:38:03,880 --> 00:38:06,960
Speaker 1: He says a US recession is the most likely outcome

707
00:38:07,040 --> 00:38:09,680
Speaker 1: as the Fed titans policy they get as stray from

708
00:38:09,719 --> 00:38:14,000
Speaker 1: Bloomberg's Schirlie Pellett. Greenspan is now a senior economic advisor

709
00:38:14,080 --> 00:38:18,000
Speaker 1: to Advisers Capital Management, and his remarks came in a

710
00:38:18,160 --> 00:38:22,319
Speaker 1: question and answer commentary on a c m's website. He said,

711
00:38:22,360 --> 00:38:26,160
Speaker 1: while the last two monthly reports showed a deceleration in

712
00:38:26,280 --> 00:38:29,800
Speaker 1: consumer price increases, quote, I don't think it will warrant

713
00:38:29,800 --> 00:38:33,400
Speaker 1: a FED reversal that is substantial enough to avoid at

714
00:38:33,480 --> 00:38:37,680
Speaker 1: least a mild recession in New York. Charlie Pellett, Bloomberg

715
00:38:37,760 --> 00:38:40,520
Speaker 1: day Break, All right, Charley, thanks well. Inflation is also

716
00:38:40,680 --> 00:38:43,600
Speaker 1: front and center in Europe this morning. Food inflation in

717
00:38:43,680 --> 00:38:47,080
Speaker 1: UK stores jumped to a record high last month, and

718
00:38:47,120 --> 00:38:50,520
Speaker 1: then as retailer's warning of another year of elevated prices,

719
00:38:50,760 --> 00:38:54,840
Speaker 1: the British Retail Consortium said that food inflation accelerated strongly

720
00:38:54,920 --> 00:38:58,600
Speaker 1: to thirteen point three percent in December, except from twelve

721
00:38:58,600 --> 00:39:01,360
Speaker 1: point four percent the previous month. Nathan not at the

722
00:39:01,400 --> 00:39:05,520
Speaker 1: same time, Karen, We've got signs of inflation potentially easing

723
00:39:05,680 --> 00:39:09,120
Speaker 1: in France this morning, and some positive data as well

724
00:39:09,200 --> 00:39:12,920
Speaker 1: out of China on the property front that seems to

725
00:39:12,960 --> 00:39:15,839
Speaker 1: be adding to some of the positive sentiment we're seeing

726
00:39:15,880 --> 00:39:17,840
Speaker 1: in the market this morning. But that's just me talking.

727
00:39:17,920 --> 00:39:20,960
Speaker 1: Let's get some actual insights from an expert. St. Dwag,

728
00:39:21,000 --> 00:39:25,359
Speaker 1: chief investment officer at Flow Bank, with US Live this morning. St.

729
00:39:25,560 --> 00:39:27,440
Speaker 1: It's great to have you with us, and I mean

730
00:39:27,520 --> 00:39:29,520
Speaker 1: I look at my screen this morning. It looks a

731
00:39:29,560 --> 00:39:34,080
Speaker 1: lot like it did yesterday with futures higher along with treasuries,

732
00:39:34,680 --> 00:39:38,560
Speaker 1: but we started the year off with losses for US stocks.

733
00:39:38,640 --> 00:39:42,680
Speaker 1: Is this another head fake for markets? Good morning? Well,

734
00:39:42,800 --> 00:39:46,120
Speaker 1: that's the question. We had a very difficult end to

735
00:39:46,200 --> 00:39:50,359
Speaker 1: the year, and yesterday wasn't a great start as um.

736
00:39:50,680 --> 00:39:55,480
Speaker 1: Markets were in the green early and reversed quite quickly. Um,

737
00:39:55,560 --> 00:39:59,319
Speaker 1: we are getting slightly better data today, as you were

738
00:39:59,520 --> 00:40:03,640
Speaker 1: mentioning earlier the inslation numbers in Europe. That's a third

739
00:40:03,680 --> 00:40:09,080
Speaker 1: country with Germany and Spain to have lower inflation there.

740
00:40:09,760 --> 00:40:13,120
Speaker 1: I'm leaving the UK separate. They have a different set

741
00:40:13,160 --> 00:40:17,200
Speaker 1: of challenges over there. Um, so we're getting some encouraging news.

742
00:40:17,320 --> 00:40:21,040
Speaker 1: We'll see the prices paid this afternoon. Is that points

743
00:40:21,080 --> 00:40:25,480
Speaker 1: to ongoing disinflation, as it should for the US as well. Um,

744
00:40:25,480 --> 00:40:27,520
Speaker 1: it's too early to say if it's a head fake,

745
00:40:27,680 --> 00:40:33,080
Speaker 1: but certainly the start of the year and this ongoing

746
00:40:33,120 --> 00:40:36,720
Speaker 1: hawkishness from central banks is continuing to weigh on market.

747
00:40:36,920 --> 00:40:41,640
Speaker 1: So a degreen would be good for consolidation, but um,

748
00:40:41,760 --> 00:40:44,440
Speaker 1: the path of least resistance could still be downward for

749
00:40:44,480 --> 00:40:46,960
Speaker 1: the next couple of weeks. Yeah, I suppose the focus

750
00:40:47,000 --> 00:40:48,880
Speaker 1: is going to be right back on central banks this

751
00:40:48,960 --> 00:40:52,480
Speaker 1: afternoon when we get those minutes from the December FED meeting.

752
00:40:52,880 --> 00:40:56,439
Speaker 1: How do you expect markets to react to that? Well,

753
00:40:56,440 --> 00:41:00,759
Speaker 1: we saw some jitters yesterday ahead of the least. We

754
00:41:00,880 --> 00:41:03,440
Speaker 1: know the minutes are going to be hawkish because the

755
00:41:03,480 --> 00:41:06,440
Speaker 1: FED was very hawkish at its December meeting. But since

756
00:41:06,480 --> 00:41:09,359
Speaker 1: then we've had quite a few data points that are

757
00:41:09,400 --> 00:41:14,440
Speaker 1: showing that disinflation is happening, might even be happening faster

758
00:41:15,120 --> 00:41:18,879
Speaker 1: than the FED anticipated. So I think markets will take

759
00:41:18,920 --> 00:41:21,520
Speaker 1: it with a grain of salt, especially if we get

760
00:41:21,520 --> 00:41:23,920
Speaker 1: better prices paid data in the I s M and

761
00:41:24,000 --> 00:41:26,359
Speaker 1: given some of those European data points that are just

762
00:41:27,040 --> 00:41:30,840
Speaker 1: adding to this, uh this, you know, confirming that inflation

763
00:41:30,960 --> 00:41:33,040
Speaker 1: is on its way down. Is it going to be

764
00:41:33,080 --> 00:41:35,960
Speaker 1: a smooth path down for inflation or is there a

765
00:41:35,960 --> 00:41:41,200
Speaker 1: possibility that we could see peaks and troughs to price

766
00:41:41,239 --> 00:41:45,040
Speaker 1: pressures as we had through this year. We could certainly

767
00:41:45,080 --> 00:41:47,560
Speaker 1: see plateaus, so we could see it come down and

768
00:41:47,600 --> 00:41:50,520
Speaker 1: then have some falling out and then you know, more

769
00:41:50,600 --> 00:41:55,040
Speaker 1: in steps, and certainly if we don't see ongoing move downwards,

770
00:41:55,080 --> 00:42:00,759
Speaker 1: that can create reaction in markets um and and lead

771
00:42:00,800 --> 00:42:03,799
Speaker 1: to jitters, and we're gonna have to uh show the

772
00:42:03,800 --> 00:42:05,880
Speaker 1: FED that inflation is coming down, so we're going to

773
00:42:05,960 --> 00:42:09,600
Speaker 1: have to you know, watch those reactions as well. So

774
00:42:09,719 --> 00:42:12,279
Speaker 1: certainly not in a in a smooth line, but a

775
00:42:12,440 --> 00:42:15,839
Speaker 1: number of the components, especially on the good side, are

776
00:42:15,880 --> 00:42:19,600
Speaker 1: really falling quite sharply. We're getting more and more indication

777
00:42:19,680 --> 00:42:22,520
Speaker 1: that the labor market is softening, even if the headline

778
00:42:22,600 --> 00:42:25,799
Speaker 1: data isn't showing all of that yet. And so the

779
00:42:25,840 --> 00:42:29,359
Speaker 1: services side at some point should start to soften as

780
00:42:29,400 --> 00:42:31,920
Speaker 1: well in terms of inflation, but that could take a

781
00:42:31,960 --> 00:42:35,439
Speaker 1: lot longer, and we could have, as you say, those

782
00:42:35,440 --> 00:42:39,040
Speaker 1: plateaus and those those little steps that might still be

783
00:42:39,080 --> 00:42:42,080
Speaker 1: painful for investors. Setting me up so nicely, to get

784
00:42:42,120 --> 00:42:43,960
Speaker 1: your take on what we're going to get from the

785
00:42:44,040 --> 00:42:47,239
Speaker 1: job's report at the end of this week. Are we

786
00:42:47,360 --> 00:42:52,400
Speaker 1: going to see further signs of slack in the labor

787
00:42:52,480 --> 00:42:55,279
Speaker 1: market or is the Feds still got more of a

788
00:42:55,280 --> 00:42:58,440
Speaker 1: fight to do to break through this tightness in the

789
00:42:58,520 --> 00:43:03,440
Speaker 1: labor market. It's been very interesting to see the difference

790
00:43:03,719 --> 00:43:08,160
Speaker 1: in the official labor surveys and the non farm payrolls

791
00:43:08,239 --> 00:43:10,680
Speaker 1: data that's coming in and all of the other surveys.

792
00:43:10,680 --> 00:43:13,680
Speaker 1: We're also going to get the joke I think today

793
00:43:13,800 --> 00:43:16,360
Speaker 1: or tomorrow, so that that will be sort of leading

794
00:43:16,480 --> 00:43:20,120
Speaker 1: us into the to the Friday numbers. UM. I think

795
00:43:20,160 --> 00:43:22,880
Speaker 1: we are gradually going to see more soft this and

796
00:43:22,920 --> 00:43:25,880
Speaker 1: we know it's happening. We know there are more and

797
00:43:25,880 --> 00:43:30,440
Speaker 1: more layoffs. We know companies are very aggressively cutting costs

798
00:43:31,080 --> 00:43:34,600
Speaker 1: in anticipation of a slowdown this year, and that will

799
00:43:34,640 --> 00:43:36,879
Speaker 1: have an effect on the on the jobs market. Now,

800
00:43:37,160 --> 00:43:40,640
Speaker 1: whether December looks stronger than the Fed would like it too,

801
00:43:41,360 --> 00:43:44,160
Speaker 1: we've seen that almost month and month again, so that

802
00:43:44,440 --> 00:43:48,239
Speaker 1: is still a real possibility. Our last minute here SD.

803
00:43:48,480 --> 00:43:52,600
Speaker 1: Are there certain sectors or styles within this market where

804
00:43:52,640 --> 00:43:57,919
Speaker 1: you see opportunity still cautious for the start of the year.

805
00:43:58,120 --> 00:44:00,480
Speaker 1: I think it's going to be a bumpy ride. At

806
00:44:00,520 --> 00:44:03,319
Speaker 1: this point, almost everyone is pricing in recession, so we

807
00:44:03,400 --> 00:44:06,919
Speaker 1: are pricing in some bad news already. But as we've seen,

808
00:44:06,960 --> 00:44:11,880
Speaker 1: it doesn't mean that it's enough to avoid further legs

809
00:44:11,920 --> 00:44:14,480
Speaker 1: down or new leg down, and that's where we have

810
00:44:14,600 --> 00:44:17,719
Speaker 1: to break through all the big lows. Um. Yes, so

811
00:44:18,000 --> 00:44:20,680
Speaker 1: a little cautious. I think for the year as a whole,

812
00:44:21,280 --> 00:44:23,920
Speaker 1: a little more optimistic that growth stocks are going to

813
00:44:24,640 --> 00:44:27,680
Speaker 1: uh do better than people expect right now, but it's

814
00:44:27,680 --> 00:44:29,960
Speaker 1: still a bit early for that. Yeah, it certainly is.

815
00:44:30,320 --> 00:44:34,000
Speaker 1: Just the fourth morning of Thanks for this st always

816
00:44:34,000 --> 00:44:37,080
Speaker 1: great to get your thoughts. St. Jack, chief investment officer

817
00:44:37,200 --> 00:44:39,680
Speaker 1: at Flow Bank, with us this morning. As we watch

818
00:44:39,880 --> 00:44:43,560
Speaker 1: futures move a little bit higher off the session highs

819
00:44:43,640 --> 00:44:45,880
Speaker 1: but still in the green SMP futures right now are

820
00:44:45,960 --> 00:44:48,920
Speaker 1: up eleven points, staff futures up sixty six. Futures are

821
00:44:49,000 --> 00:44:51,400
Speaker 1: hired by forty five points ten. Your treasury is up

822
00:44:51,400 --> 00:44:55,240
Speaker 1: eleven thirty seconds. Yield on the benchmark three point six

823
00:44:55,360 --> 00:45:03,279
Speaker 1: nine per cent. You're listening to Bloomberg daybreak markets headlines

824
00:45:03,360 --> 00:45:06,320
Speaker 1: and breaking news twenty four hours a day at Bloomberg

825
00:45:06,400 --> 00:45:09,760
Speaker 1: dot Com, at Bloomberg Business at and at Bloomberg Quick tape.

826
00:45:09,920 --> 00:45:18,920
Speaker 1: This is a Bloombern Business lash and I'm Karen Moscow.

827
00:45:18,960 --> 00:45:21,760
Speaker 1: And US dot index futures are on the rise this morning.

828
00:45:21,920 --> 00:45:24,040
Speaker 1: S and P futures up three tens of upper cent

829
00:45:24,080 --> 00:45:26,600
Speaker 1: to eleven points. Down futures have two tens of upper

830
00:45:26,640 --> 00:45:29,520
Speaker 1: center sixty five points, and NASDACK futures have four tens

831
00:45:29,520 --> 00:45:33,000
Speaker 1: of uppercent or forty six points. A ten year treasury

832
00:45:33,040 --> 00:45:36,480
Speaker 1: up twelve thirty seconds, held three point six and nine percent,

833
00:45:36,560 --> 00:45:38,520
Speaker 1: and the yield on the two year at four point

834
00:45:38,600 --> 00:45:42,280
Speaker 1: three four percent. Nine X Scrude oil moving lower this morning,

835
00:45:42,320 --> 00:45:44,120
Speaker 1: down more than two and a half percent on a

836
00:45:44,160 --> 00:45:47,080
Speaker 1: dollar nineties seven at seventy four dollars ninety six cents

837
00:45:47,080 --> 00:45:50,000
Speaker 1: of barrel comes gold on the rise, up one percent

838
00:45:50,120 --> 00:45:53,160
Speaker 1: or seventeen dollars eighty cents at one thousand, eight hundred

839
00:45:53,200 --> 00:45:56,600
Speaker 1: sixty three dollars ninety cents announced. The euro this morning

840
00:45:56,640 --> 00:45:59,600
Speaker 1: one point six one nine against the dollar, British pound

841
00:45:59,600 --> 00:46:02,480
Speaker 1: one point two zero six five then at one thirty

842
00:46:02,520 --> 00:46:05,640
Speaker 1: point four six, and bitcoin is at about sixteen thousand,

843
00:46:05,680 --> 00:46:09,040
Speaker 1: eight hundred dollars that's up one point one per cent.

844
00:46:09,120 --> 00:46:11,880
Speaker 1: And as a Bloomberg Business Flash, Nathan, all right, Karen,

845
00:46:11,880 --> 00:46:14,319
Speaker 1: thank you. It's five fifty six on Wall Street time

846
00:46:14,360 --> 00:46:17,080
Speaker 1: for our daily Bloomberg lawb Brief, exploring legal issues in

847
00:46:17,120 --> 00:46:20,440
Speaker 1: the news. Today, we look at the legalization of marijuana

848
00:46:20,520 --> 00:46:23,759
Speaker 1: in New York. Nearly two years after pott became legal

849
00:46:23,800 --> 00:46:26,680
Speaker 1: in the state, it has only one retail weed shop

850
00:46:26,760 --> 00:46:29,480
Speaker 1: that opened its doors to the public in Lower Manhattan

851
00:46:29,560 --> 00:46:32,840
Speaker 1: just last week. That falls far short of Governor Kathy

852
00:46:32,880 --> 00:46:35,440
Speaker 1: Hokele's prediction that twenty stores would open by the end

853
00:46:35,440 --> 00:46:37,719
Speaker 1: of the year. New York State has yet to keep

854
00:46:37,760 --> 00:46:41,960
Speaker 1: its promise to provide retail licensees with storefronts and startup loans.

855
00:46:42,320 --> 00:46:45,279
Speaker 1: For more in the situation and the legal implications, Bloomberg's

856
00:46:45,320 --> 00:46:47,960
Speaker 1: June Grosso speaks with Jason Little, who heads the cannabis

857
00:46:48,000 --> 00:46:51,360
Speaker 1: practice team at Ferrell Fritz, New Jersey, open with twelve

858
00:46:51,440 --> 00:46:56,239
Speaker 1: retail marijuana dispensaries New York with one. What are your

859
00:46:56,239 --> 00:47:00,600
Speaker 1: clients telling you about the licensing process? Where have they

860
00:47:00,680 --> 00:47:04,640
Speaker 1: been having difficulties with it? I have a cultivator client,

861
00:47:04,800 --> 00:47:07,719
Speaker 1: and he was one of the first farms to have

862
00:47:07,840 --> 00:47:10,360
Speaker 1: a sprout in the state of New York. He was

863
00:47:10,400 --> 00:47:13,280
Speaker 1: one of the first folks to get a cultivator license

864
00:47:13,360 --> 00:47:15,560
Speaker 1: when the conditionals came out. He was a hemp grower,

865
00:47:16,000 --> 00:47:18,480
Speaker 1: and it worked out pretty well for him. There's issues

866
00:47:18,520 --> 00:47:22,000
Speaker 1: attendant with that now, but that licensing process worked pretty

867
00:47:22,000 --> 00:47:25,680
Speaker 1: smoothly for him. I have processor licensed clients that have

868
00:47:25,760 --> 00:47:28,800
Speaker 1: been approved to some have not. Again, it's went well,

869
00:47:29,160 --> 00:47:33,480
Speaker 1: just slow. The cord retail dispensary licenses are a little

870
00:47:33,520 --> 00:47:36,640
Speaker 1: bit slow. I mean they've taken several months to get

871
00:47:36,680 --> 00:47:38,920
Speaker 1: off the ground. Um, it looks like they're going in

872
00:47:38,920 --> 00:47:41,360
Speaker 1: the right direction and rolling now. But I think a

873
00:47:41,400 --> 00:47:44,840
Speaker 1: whole bunch more of those applicants need to get their licenses,

874
00:47:44,920 --> 00:47:46,880
Speaker 1: and hopefully sooner than later, so we can get the

875
00:47:46,920 --> 00:47:50,320
Speaker 1: market off the ground. Tell us about federal banking rules

876
00:47:50,520 --> 00:47:54,640
Speaker 1: and why retail weed shops like housing works have to

877
00:47:54,680 --> 00:47:59,080
Speaker 1: find a state charted bank to accept debit payments no

878
00:47:59,200 --> 00:48:04,960
Speaker 1: credit cards. The situation is legal entanglement. So, as you

879
00:48:05,080 --> 00:48:09,400
Speaker 1: surely know, June cannabis remains a Schedule one controlled substance,

880
00:48:09,600 --> 00:48:15,560
Speaker 1: So theoretically interstate commerce of cannabis is illegal. Cannabis commerce

881
00:48:15,560 --> 00:48:18,880
Speaker 1: in general is illegal and banking, especially with respect to

882
00:48:18,920 --> 00:48:22,239
Speaker 1: federally chartered banks, it's a risk that a lot of

883
00:48:22,280 --> 00:48:25,840
Speaker 1: the banks, from an individual standpoint, are deciding not to

884
00:48:25,920 --> 00:48:30,080
Speaker 1: make local banks, whether state chartered or not. Federal credit

885
00:48:30,200 --> 00:48:34,160
Speaker 1: unions are probably the most insulated. But it's essentially a

886
00:48:34,200 --> 00:48:37,560
Speaker 1: cash business because from a matter of law, federally it's illegal.

887
00:48:37,760 --> 00:48:40,440
Speaker 1: So it's trying to operate as a cash business with

888
00:48:40,560 --> 00:48:44,319
Speaker 1: limited finance options, which New York State tried to accommodate

889
00:48:44,360 --> 00:48:47,160
Speaker 1: for with the fund that was going to have turned

890
00:48:47,239 --> 00:48:49,600
Speaker 1: key least. It's hard to get financing for a number

891
00:48:49,600 --> 00:48:52,400
Speaker 1: of reasons, but most importantly because you don't have a

892
00:48:52,400 --> 00:48:54,759
Speaker 1: lot of banks upward and at some point I think

893
00:48:54,800 --> 00:48:57,080
Speaker 1: they will be. O cm ha said. The funds weren't

894
00:48:57,080 --> 00:48:59,279
Speaker 1: there and raised, not that they won't be or can't

895
00:48:59,280 --> 00:49:01,759
Speaker 1: be there to snot right now and they can't hold

896
00:49:01,760 --> 00:49:05,040
Speaker 1: this process up. And that's Jason Little of Ferrell Fritz

897
00:49:05,080 --> 00:49:07,759
Speaker 1: speaking with Bloomberg's June Grosso. You can catch more of

898
00:49:07,760 --> 00:49:10,279
Speaker 1: that interview, plus analysis of the latest legal news by

899
00:49:10,280 --> 00:49:13,600
Speaker 1: subscribing to the Bloomberg Law Podcast. You can download the

900
00:49:13,600 --> 00:49:16,960
Speaker 1: show at Bloomberg dot com, Slash Podcasts, and attorneys can

901
00:49:16,960 --> 00:49:20,520
Speaker 1: find exceptional legal research and business development tools at Bloomberg

902
00:49:20,600 --> 00:49:23,160
Speaker 1: law dot com and on the Bloomberg terminal at b

903
00:49:23,320 --> 00:49:26,600
Speaker 1: law go. SMP futures right now up eleven points, Stown

904
00:49:26,640 --> 00:49:29,680
Speaker 1: futures up sixty two, NASTAC futures are higher by forty

905
00:49:29,680 --> 00:49:32,280
Speaker 1: eight points. The tenure treasury is up thirteen thirty seconds.

906
00:49:32,360 --> 00:49:34,279
Speaker 1: You'ld three point six nine percent yield on the two

907
00:49:34,360 --> 00:49:36,840
Speaker 1: year four point three four percent, and nime X Screwed

908
00:49:37,080 --> 00:49:40,480
Speaker 1: is sinking down two point six percent seventy four dollars

909
00:49:41,160 --> 00:49:43,480
Speaker 1: cents of barrel. We'll check your business headlines at all

910
00:49:43,520 --> 00:49:46,080
Speaker 1: the news you need to start your day. Hour two

911
00:49:46,520 --> 00:49:49,239
Speaker 1: of Bloomberg Daybreak starts right now