WEBVTT - Bloomberg Daybreak: November 23, 2022 - Hour 1 (Radio) 0:00:02.720 --> 0:00:06.160 Live from the Bloomberg Interactive Brokers Studios. This is Bloomberg 0:00:06.240 --> 0:00:10.559 Daybreak for Wednesday, November two. Coming up this hour. Fd 0:00:10.720 --> 0:00:13.840 X founder Sam Bankman free To apologizes to staff in 0:00:13.880 --> 0:00:17.479 a letter credit Sweet swarns of a massive fourth quarter loss. 0:00:17.960 --> 0:00:20.919 HP is the latest check company to slash jobs and 0:00:21.040 --> 0:00:24.680 investors away to half dozen economic reports out of Thanksgiving, 0:00:24.880 --> 0:00:27.560 a deadly mass shooting at a Virginia Walmart, plus the 0:00:27.560 --> 0:00:30.320 suspect acused of gunning down people in the gay Colorado 0:00:30.480 --> 0:00:34.000 nightclub has a court appearance today. I'm Michael barr More Ahead, 0:00:34.479 --> 0:00:37.400 I'm John Stash, Aaron Sports, Ben Simmons returned to Philadelphia. 0:00:37.400 --> 0:00:39.680 The Sixers beat the Nets, the Rangers beat the King. 0:00:39.800 --> 0:00:45.680 St John's beat Syracuse in overtime. That's all trended ahead 0:00:45.720 --> 0:00:49.280 on Bloomberg Daybreak on Bloomberg Elive in Free on New York, 0:00:49.479 --> 0:00:54.160 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.440 --> 0:00:58.880 Bloomberg nine sixties and Francisco syrius x M one nine team, 0:00:59.080 --> 0:01:02.000 and around the world on Bloomberg Radio dot Com and 0:01:02.160 --> 0:01:09.959 via the Bloomberg business Side. Good Wednesday morning, I'm Any Morris, 0:01:10.000 --> 0:01:12.120 and I'm Nathan Hagar. Futures are moving a little bit 0:01:12.160 --> 0:01:14.560 higher this day before Thanksgiving. We're coming up to five 0:01:14.600 --> 0:01:16.520 oh one on Wall Street, and we checked the markets 0:01:16.560 --> 0:01:19.319 every fifteen minutes during the trading day. On Bloomberg, SFP 0:01:19.400 --> 0:01:22.040 futures are up eight point, Staff futures up fifty, Nasdaq 0:01:22.080 --> 0:01:25.320 futures are higher by fifteen points. The tenure Treasury is 0:01:25.400 --> 0:01:28.160 up three thirty seconds, yield three point seven four percent, 0:01:28.240 --> 0:01:30.720 yield on the two year four point five two percent, 0:01:31.000 --> 0:01:33.040 and i'm x screwed is up eight tenths percent, or 0:01:33.160 --> 0:01:35.720 sixty two cents at eighty one dollar fifty seven cents 0:01:35.720 --> 0:01:38.399 a barrel. Maybe, Nathan, we will have more on the 0:01:38.440 --> 0:01:40.560 markets in just a minute, but first, the latest on 0:01:40.600 --> 0:01:42.920 the fallout from f t X. The founder of the 0:01:42.959 --> 0:01:46.920 collapsed crypto exchange is now apologizing. Let's get the latest 0:01:46.959 --> 0:01:50.480 live with Bloomberg. Steve rapp Aboard, Good morning Steve, Good morning, Amy, 0:01:50.480 --> 0:01:53.560 and Nathan. In a mia colpa to employees, disgraced ft 0:01:53.760 --> 0:01:56.360 X founder Sam Bankman Freed says he didn't mean for 0:01:56.440 --> 0:01:58.760 any of this to happen, and he would give anything 0:01:58.800 --> 0:02:01.360 to go back and do things over again. The crypto 0:02:01.400 --> 0:02:04.560 exchange collapsed about two weeks ago, fueled by a credit squeeze, 0:02:04.600 --> 0:02:07.400 virtual coins sell offs, and what bankman Fried calls a 0:02:07.520 --> 0:02:10.480 run on the bank. He also disclosed collateral crashed by 0:02:10.520 --> 0:02:14.640 fifty one billion dollars as ft X spiraled. Bankruptcy proceeding 0:02:14.720 --> 0:02:16.560 so far paint f t X as a company with 0:02:16.600 --> 0:02:20.200 poor record keeping and other questionable practices Live in New 0:02:20.320 --> 0:02:23.560 York Time, Steve Rappaport Bloomberg Daybreak. All right, Steve, thank you. 0:02:23.600 --> 0:02:26.040 The collapse of f t X shocked much of the 0:02:26.080 --> 0:02:30.000 financial world, including Cathy Would. The ARC Investment CEO, says 0:02:30.040 --> 0:02:33.760 the exchange clearly lacked oversight. The fact that so many 0:02:33.840 --> 0:02:41.520 people were completely fooled um is quite shocking. And you know, 0:02:41.760 --> 0:02:45.040 I think he had this aura around him or something 0:02:45.680 --> 0:02:50.440 that caused people to to to ask fewer questions than 0:02:50.560 --> 0:02:52.880 might otherwise have been the case. Kathy Wood made the 0:02:52.880 --> 0:02:55.359 comments in an interview with Carol Master and Tim Stenovic 0:02:55.400 --> 0:02:57.680 on Bloomberg Business Week. You can watch the show live 0:02:57.720 --> 0:03:00.480 on YouTube weekdays from two to five Eastern. Catch more 0:03:00.520 --> 0:03:03.040 of that conversation with Cathy Would coming up shortly here 0:03:03.040 --> 0:03:06.320 on Bloomberg Daybreak and Nathan. Another major story we are 0:03:06.360 --> 0:03:10.120 following comes from overseas. Credit Sweets warning of a massive 0:03:10.160 --> 0:03:12.359 fourth quarter loss. We got to London now and get 0:03:12.360 --> 0:03:15.040 the latest live with Bloomberg's You and Parts, Good Morning You, 0:03:15.120 --> 0:03:18.200 and good morning Amy and Nathan. Credit Sweet clients pulled 0:03:18.200 --> 0:03:21.440 as much as eight billion dollars from the bank during 0:03:21.440 --> 0:03:24.840 the first few weeks of this quarter, underlying the ongoing 0:03:24.880 --> 0:03:28.880 concerns over the bank's restructuring efforts after years of scandals. 0:03:29.080 --> 0:03:31.680 The Swiss Bank is warning today it's facing a loss 0:03:31.760 --> 0:03:34.360 of up to one point six billion dollars for the 0:03:34.400 --> 0:03:37.000 final three months of this year, and in China, the 0:03:37.040 --> 0:03:39.320 company is said to be acting at least a third 0:03:39.480 --> 0:03:42.920 of its investment banking workforce. Credit Sweet shares currently down 0:03:42.960 --> 0:03:45.640 almost five percent in London, I'm You and Parts, Bloomberg 0:03:45.680 --> 0:03:47.640 Day breaks, all right, you and Thanks, and job cuts 0:03:47.720 --> 0:03:50.560 are continuing here in the US. The latest at HP, 0:03:50.920 --> 0:03:53.160 the tech company, says it will eliminate as many as 0:03:53.200 --> 0:03:56.560 six thousand positions over the next three years. HP says 0:03:56.600 --> 0:04:00.440 declining demand for personal computers is cutting into profits, and 0:04:00.480 --> 0:04:03.480 Twitter has also been cutting jobs sharply ever since Elon 0:04:03.600 --> 0:04:06.240 Musk took over that company. Now we're learning it's lost 0:04:06.280 --> 0:04:09.240 more than half of its in house lawyers. Bloomberg said. 0:04:09.240 --> 0:04:11.720 Baxter has that story from our nine sixty news room 0:04:11.760 --> 0:04:15.400 in San Francisco. This includes several senior attorneys, and it 0:04:15.480 --> 0:04:19.000 raises some concerns about the depth of legal knowledge that 0:04:19.040 --> 0:04:22.640 remains with the company. Bloomberg sources say this leaves only 0:04:23.040 --> 0:04:26.880 Head of Litigation James Baker and International Legal chief Regina 0:04:26.920 --> 0:04:30.520 Lima in leadership roles in the department. There is enough 0:04:30.560 --> 0:04:33.120 concern that, the sources say, there may not be enough 0:04:33.200 --> 0:04:37.120 legal expertise remaining in house to know which outside law 0:04:37.200 --> 0:04:40.720 firms are handling certain matters. In San Francisco, I'm at 0:04:40.720 --> 0:04:43.840 Baxter Bloomberg daybreak and thanks were three weeks away from 0:04:43.880 --> 0:04:46.480 the next decision from the Federal Reserve. In Central Bank 0:04:46.480 --> 0:04:50.080 officials are speaking on policy. Kansas City Fed President Ester 0:04:50.160 --> 0:04:54.240 George says significant US household savings could have implications for 0:04:54.320 --> 0:04:57.240 how high rates need to rise. While high savings is 0:04:57.279 --> 0:05:01.679 likely to provide momentum to consumption and require higher interest rates, 0:05:01.839 --> 0:05:05.520 it's certainly positive that we see that these households are wealthier, 0:05:05.640 --> 0:05:10.760 less financially constrained, and better ensured. But that said, reduced 0:05:10.800 --> 0:05:15.760 inflation will mean we have to incent saving over consumption. 0:05:16.680 --> 0:05:19.440 Kansas City FED President Esther George made those comments in 0:05:19.480 --> 0:05:22.479 Santiago during a panel discussion hosted by the Central Bank 0:05:22.520 --> 0:05:25.359 of Chile and Dathan. We have a slew of economic 0:05:25.400 --> 0:05:27.920 reports this morning, much more than usual ahead of the 0:05:27.960 --> 0:05:31.039 Thanksgiving Day holiday. We get a preview now from Bloomberg 0:05:31.040 --> 0:05:34.799 Economics correspondent Michael McKee, who can't have a holiday until 0:05:34.800 --> 0:05:37.680 the data dump is done. Seven different indicators will be 0:05:37.720 --> 0:05:41.800 released on Thanksgiving Eve. They vary in importance. The capital 0:05:41.800 --> 0:05:45.080 goods section of durable goods orders represents business spending trends, 0:05:45.080 --> 0:05:48.680 so that will get attention. Wall Street watches jobless claims 0:05:48.680 --> 0:05:50.320 as sort of a canary in a coal mine for 0:05:50.360 --> 0:05:52.760 the labor market, and the Fed has made a big 0:05:52.760 --> 0:05:57.120 deal out of the University of Michigan's inflation expectations numbers. 0:05:57.120 --> 0:06:01.279 Slightly less important mortgage applications and new home sales. We 0:06:01.520 --> 0:06:04.440 know higher interest rates are crippling the housing markets. Of 0:06:04.520 --> 0:06:08.000 interest will be whether home prices keep falling. S and 0:06:08.040 --> 0:06:11.279 p purchasing managers indexes will be overshadowed by next week's 0:06:11.360 --> 0:06:14.440 I s M report, and, barring surprise, the Minutes of 0:06:14.480 --> 0:06:17.279 the feds November second meeting won't likely add much to 0:06:17.320 --> 0:06:20.040 the rate outlook. They're three weeks old and almost everyone 0:06:20.080 --> 0:06:23.159 on the FED has offered their views since that meeting. 0:06:23.400 --> 0:06:26.560 Michael McKee Bloomberg Daybreaking, all Right, Mike Thanks, and other news. 0:06:26.600 --> 0:06:29.719 This morning, there were violent protests at Apple's main iPhone 0:06:29.720 --> 0:06:32.520 making plant in China. Hundreds of workers at the fox 0:06:32.560 --> 0:06:35.919 Con factory battled security personnel after almost a month of 0:06:35.960 --> 0:06:39.560 tough restrictions intended to quash a COVID outbreak. Videos shows 0:06:39.640 --> 0:06:41.839 hundreds of workers breaking out of dorm rooms at the 0:06:41.839 --> 0:06:44.920 facility today, and Disney set for a major box office 0:06:44.920 --> 0:06:48.080 return in China. Sources say it will release its latest 0:06:48.160 --> 0:06:50.880 Avatar film on December sixte and that could be a 0:06:50.920 --> 0:06:54.000 big lift in a key market for Disney. Previous blockbusters 0:06:54.000 --> 0:06:57.200 have been denied entry on the deteriorating relations between the 0:06:57.279 --> 0:07:00.000 US and China, and futures are on the rise this morning. 0:07:00.040 --> 0:07:02.680 Amy SMP futures are up seven points down, futures up 0:07:02.680 --> 0:07:05.719 forty seven, NASTACT futures up thirteen points ten. Your treasury 0:07:05.760 --> 0:07:08.479 is up one thirty second now yield three point seven 0:07:09.400 --> 0:07:11.120 and I'm ex screwed up six tenths per cent at 0:07:11.120 --> 0:07:13.880 eighty one forty two cents of barrel zero trading at 0:07:13.920 --> 0:07:16.400 one point zero three one zero against the dollar. Your 0:07:16.440 --> 0:07:18.680 latest local headlines in the check of sports. Up next, 0:07:18.800 --> 0:07:25.720 this is Bloomberg making ethan five or seven on Wall Street. 0:07:25.760 --> 0:07:27.680 Let's bring in Michael Barr with more on what else 0:07:27.800 --> 0:07:29.800 is going on in New York and around the world. 0:07:29.880 --> 0:07:33.360 Good morning, Michael, Good morning Amy. Authorities in Chesapeake, Virginia 0:07:33.480 --> 0:07:36.360 are investigating a mass shooting at a Walmart last night. 0:07:36.680 --> 0:07:40.200 Police spokesperson Leo Kazinski says several people are dead and 0:07:40.280 --> 0:07:42.960 several others are injured. It's sad, you know, we're a 0:07:42.960 --> 0:07:45.360 couple of days before the Thanksgiving holiday. I mean, anytime 0:07:45.400 --> 0:07:47.080 that's a said, and it's just it's just just a 0:07:47.080 --> 0:07:49.360 bad time all around, you know. It's just for everybody involved, 0:07:49.680 --> 0:07:52.960 especially the victims. Like this is as noorable. Police spokesman 0:07:53.040 --> 0:07:56.320 Kazinski says, it's believe there was only one shooter, who 0:07:56.360 --> 0:07:59.800 was now dead. The FBI is now assisting in the investigation. 0:08:00.280 --> 0:08:03.280 The alleged shooter facing possible hate crime charges, and the 0:08:03.280 --> 0:08:05.960 fatal shooting of five people at the Colorado Springs Gay 0:08:06.120 --> 0:08:10.480 nightclub has a court appearance today. The suspects defense team 0:08:10.560 --> 0:08:14.600 listed Anderson Lee Aldridge as non binary. The motive in 0:08:14.640 --> 0:08:18.200 the shooting is still under investigation. New York Governor Kathy 0:08:18.200 --> 0:08:21.480 Hocle says the state will take larger strides in trying 0:08:21.480 --> 0:08:25.400 to prevent hate crimes. Hocal sign two pieces of legislation 0:08:25.440 --> 0:08:28.520 into law that aims to educate people about what is 0:08:28.560 --> 0:08:32.160 considered hate speech and how that speech could potentially turn 0:08:32.240 --> 0:08:35.520 into violent acts. Ordinary New Yorkers are out there seeing 0:08:35.559 --> 0:08:39.040 the same thing. I want them to be part of 0:08:39.040 --> 0:08:42.160 our team. I want others to come with that early 0:08:42.200 --> 0:08:44.480 warning system when they see this or they hear someone 0:08:44.480 --> 0:08:47.320 in their schools saying something. This is what red flag 0:08:47.400 --> 0:08:50.679 laws are also all about. One bill that Governor Hocal 0:08:50.800 --> 0:08:54.000 sign requires people convicted of a hate crime to undergo 0:08:54.080 --> 0:08:57.920 hate crime prevention training. New York City Mayor Eric Adams 0:08:58.000 --> 0:09:00.679 unveiled new plans to close more Street It's in Midtown 0:09:00.720 --> 0:09:04.600 Manhattan to traffic in December. Adams says one part calls 0:09:04.640 --> 0:09:07.439 for a section of Fifth Avenue to be closed completely 0:09:07.480 --> 0:09:10.560 to allow holiday shoppers to walk about. But this gab 0:09:10.640 --> 0:09:13.480 driver says that means less room for cars. I think 0:09:13.480 --> 0:09:16.320 it's horrible to close it because you're just gonna create 0:09:16.360 --> 0:09:19.360 great luck everywhere else. You know. It's like it's like 0:09:20.160 --> 0:09:24.560 it's like having a blood clock over here. Meanwhile, millions 0:09:24.559 --> 0:09:27.840 of Americans are hitting the roads where the Thanksgiving getaway. Today, 0:09:28.000 --> 0:09:31.320 nearly fifty five million Americans are expected to travel at 0:09:31.400 --> 0:09:34.480 least fifty miles from home. An accountant who handled the 0:09:34.520 --> 0:09:38.320 tax returns of some Trump organization executives told a jury 0:09:38.360 --> 0:09:41.480 that Donald Trump reported a total of about nine hundred 0:09:41.520 --> 0:09:45.319 million dollars in operating losses over two years. Donald Vender 0:09:45.520 --> 0:09:48.319 with Masis, was the first defense witness in the tax 0:09:48.360 --> 0:09:51.480 fraud case. Global News twenty four hours a day on 0:09:51.679 --> 0:09:55.080 air and on Bloomberg Quicktake, powered by more than twenty 0:09:55.200 --> 0:09:58.160 seven hundred journalists and analysts more than a hundred twenty countries. 0:09:58.520 --> 0:10:04.920 Michael Barron, this is bloom Burg aint all right, Thank you, Michael. John. 0:10:04.920 --> 0:10:08.240 Now that the sports aboard tries stay douty, here's John 0:10:08.400 --> 0:10:11.680 dash our Amy. The Philadelphia's seventies sixers took Ben Simmons 0:10:11.800 --> 0:10:13.400 with the first pick of the draft, and he became 0:10:13.400 --> 0:10:15.840 an all star for them. But things went sour, especially 0:10:15.880 --> 0:10:19.600 in the playoffs. Traded last season to Brooklyn. Last night, 0:10:19.679 --> 0:10:22.199 his first game back, he got food said he expected 0:10:22.240 --> 0:10:25.000 the booze to be Louder played fairly well eleven points, 0:10:25.040 --> 0:10:27.480 eleven assists that held scoreless of the fourth quarters. The 0:10:27.559 --> 0:10:30.679 Sixers beat the Nets one one oh six. Billy was 0:10:30.760 --> 0:10:33.400 without star center Joe l Emby, who had been critical 0:10:33.480 --> 0:10:36.000 of Simmons at the end of this time. There Rangers 0:10:36.040 --> 0:10:38.360 continued their trip out west in l a down to 0:10:38.559 --> 0:10:41.000 nothing second period. They scored three in the second and 0:10:41.160 --> 0:10:45.439 the game was to be three and the third sid 0:10:45.559 --> 0:10:51.120 far Corner set play the licens star Chris Pryder. They've 0:10:51.160 --> 0:10:53.680 worked on that for a couple of years. We've seen 0:10:53.720 --> 0:10:57.440 it from time to time, and it pays off as 0:10:57.480 --> 0:11:00.560 a battle Chats set the funk yet far side Pridor 0:11:00.640 --> 0:11:03.640 to caps the guy seat and teach Peterson. The Rangers 0:11:03.960 --> 0:11:06.360 go back on top. ESPN New York Headic Crider added 0:11:06.360 --> 0:11:09.120 an empty Netta Rangers beat the King's five three Plates 0:11:09.160 --> 0:11:11.960 and an Anna Hive Devils Tonight. Those Toronto, New Jersey 0:11:12.000 --> 0:11:14.439 win would be a club record fourteenth win in the row. 0:11:14.880 --> 0:11:16.960 Like the old days of the Big East St. John's 0:11:17.000 --> 0:11:19.280 and Syracuse in Brooklyn. They went over time the Red 0:11:19.360 --> 0:11:21.920 Storm War in seventy six sixty nine. Then L six 0:11:22.000 --> 0:11:24.920 and Oh Giants lead today for Dallas Big Game tomorrow. 0:11:25.040 --> 0:11:27.839 Both Team seven and three Giants seven wanted Dallas since 0:11:27.920 --> 0:11:31.199 two thousand sixteen. Bloomberg Nos reported last summer the Glazer 0:11:31.280 --> 0:11:33.920 family was considering selling at least a minority stake in 0:11:33.960 --> 0:11:36.679 their ownership of Manchester United of the Premier League. The 0:11:36.760 --> 0:11:41.320 family now admits they are quote exploring strategic alternatives. Their 0:11:41.320 --> 0:11:44.400 ownership has been criticized by fans of the team down 0:11:44.440 --> 0:11:48.480 Stationward Bloomberg Sports, Nathan, all right, thank you, that's okay, John, 0:11:48.520 --> 0:11:51.959 thanks so much. Teachers are higher. We're s S and 0:11:52.000 --> 0:11:54.959 P futures up six, Dell futures up forty two, Nasdaq 0:11:55.040 --> 0:11:59.160 futures up six. Ten year Treasury unchanged the yield at 0:11:59.160 --> 0:12:08.120 three point seven. This is Bloomberg. The Bloomberg Sports Report 0:12:08.200 --> 0:12:10.160 was brought to you by Audie. Don't let someone else 0:12:10.240 --> 0:12:12.360 drive off in the Autie model. You've always wanted to 0:12:12.440 --> 0:12:14.400 visit your local tri state out and dealer to get 0:12:14.440 --> 0:12:16.520 behind the wheel of yours today, or visit Autie Offers 0:12:16.559 --> 0:12:24.120 dot com for more information, markets, headlines, and breaking news 0:12:24.280 --> 0:12:27.000 twenty four hours a day at Bloomberg dot com, bloo 0:12:27.000 --> 0:12:30.439 Bloomberg Business at and at Bloomberg Quick Tape. He's a 0:12:30.520 --> 0:12:39.680 Bloomberg Business Flash. I'm Nathan Hagar. Futures are holding steady 0:12:39.720 --> 0:12:42.120 as investors await the latest FED minutes and clues on 0:12:42.200 --> 0:12:44.680 the policy path. We checked the markets every fifteen minutes 0:12:44.760 --> 0:12:47.120 during the training day on Bloomberges and P futures are 0:12:47.200 --> 0:12:50.400 up four points, DAL futures up thirty four Nastack futures 0:12:50.440 --> 0:12:53.080 are hired by two points little change ten. Your treasuries 0:12:53.080 --> 0:12:55.720 down one thirty second yield three point seven five percent, 0:12:55.800 --> 0:12:58.200 yield on the two year four point five three percent. 0:12:58.559 --> 0:13:00.800 Now I'm ex screwed up six tenths center, forty five 0:13:00.840 --> 0:13:03.360 cents eighty one dollar, thirty nine cents of barrel comic 0:13:03.400 --> 0:13:06.800 stole down two tenths per cent at seventnnounced the euro 0:13:06.920 --> 0:13:09.360 one point zero three zero four against the dollar. That's 0:13:09.360 --> 0:13:11.840 the Bloomberg Business Flash. Now here's Michael Barr with more 0:13:11.880 --> 0:13:13.720 on what's going to run around the world. Good morning, Michael, 0:13:13.800 --> 0:13:16.480 Good morning, Nathan. Multiple people have been killed and injured 0:13:16.520 --> 0:13:19.880 in the shooting last night at a Walmart store in Chesapeake, Virginia. 0:13:20.120 --> 0:13:23.800 Police say the suspected Loan gunman is dead. Ukrainian authorities 0:13:23.800 --> 0:13:26.760 say an overnight rocket attack has struck a hospital maternity 0:13:26.840 --> 0:13:30.720 ward in southern Ukraine, killing a newborn baby. The baby's 0:13:30.760 --> 0:13:33.120 mother and the doctor were pulled alive from the rubble. 0:13:33.440 --> 0:13:35.760 In the NBA and the Nets lost in the NHL, 0:13:35.840 --> 0:13:39.000 the Rangers won at the World Cup. Four games are 0:13:39.040 --> 0:13:42.040 on the slate today, including Morocco and Croatia, who are 0:13:42.080 --> 0:13:45.400 playing right now. Global News twenty four hours a day 0:13:45.600 --> 0:13:48.800 on air and on Bloomberg Quicktake, powered by more than 0:13:48.880 --> 0:13:51.720 twenty seven hundred journalists and analysts and more than one 0:13:51.760 --> 0:13:55.680 hundred twenty countries. I'm Michael Barr, and this is Bloomberg Amy. 0:13:56.040 --> 0:13:58.600 All right, thank you, Michael. It's five nineteen on Wall 0:13:58.640 --> 0:14:01.760 Street Live from the Bloomberg Interactive Broker Studios. This is 0:14:01.800 --> 0:14:04.480 Bloomberg Daybreak. We're not going to bring you an interview 0:14:04.559 --> 0:14:08.720 with our investment CEO, Cathy Wood. She's reiterating her faith 0:14:08.800 --> 0:14:11.280 in crypto assets in the wake of ft x is 0:14:11.360 --> 0:14:15.439 collapse and offering support for Elon Musk's Twitter strategy. She 0:14:15.559 --> 0:14:17.800 talked about those topics and more in an interview with 0:14:17.880 --> 0:14:21.240 Carol Masser and Tim Stentovic on Bloomberg Business Week. Let's 0:14:21.280 --> 0:14:24.040 listen in. I gotta talk to you about the crypto space. 0:14:24.160 --> 0:14:26.400 You um, you know, it's it's a world you know 0:14:26.560 --> 0:14:29.000 really well. We think about the ft X collapse, the 0:14:29.080 --> 0:14:33.120 bankruptcy proceedings today, the coming undone of Sam Makman freed. 0:14:33.600 --> 0:14:35.680 You know, you have been buying into some of the 0:14:35.720 --> 0:14:38.960 different names in the crypto space, coin Base, gray Scale, 0:14:39.320 --> 0:14:43.840 Bitcoin trust. Why should investors trust crypto? Why do you 0:14:44.040 --> 0:14:48.520 trust crypto at this point? Yes, if you look at 0:14:49.440 --> 0:14:54.320 the block chains, let's let's use uh uh the Bitcoin 0:14:54.400 --> 0:14:59.800 blockchain and Ethereum, what you'll find is they have the infrastructure, 0:14:59.840 --> 0:15:04.880 that technology has not skipped a beat throughout this entire crisis. 0:15:05.000 --> 0:15:08.880 In fact, the hash rate, Bitcoin's hash rate is at 0:15:08.920 --> 0:15:12.680 an all time high, and that is a real indication 0:15:12.760 --> 0:15:17.360 of the security of the network. On Ethereum, we're seeing 0:15:17.800 --> 0:15:23.160 the total value uh staked at twenty four billion, that 0:15:23.600 --> 0:15:28.280 is an all time high. So we think the infrastructure 0:15:28.560 --> 0:15:32.920 is working beautifully. UM. As far as coin base, UH, 0:15:33.400 --> 0:15:39.800 this is an onshore regulated UH company and wanting to 0:15:39.920 --> 0:15:44.800 help shape regulations. Brian Armstrong, the CEO and Alicia uh 0:15:45.000 --> 0:15:49.160 CFO have been leaning in into what's going on right 0:15:49.240 --> 0:15:54.440 now and saying, okay, regulators, we need more clarity in 0:15:54.640 --> 0:15:59.440 order to protect to protect investors, those who wanted to 0:16:00.320 --> 0:16:04.400 get involved with a certain types of crypto. We're forced 0:16:04.440 --> 0:16:08.680 off shore. And look at what's happened. So um I 0:16:09.000 --> 0:16:11.360 I think that coin base is going to come out 0:16:11.440 --> 0:16:15.800 here looking very very strong. It just lost a very 0:16:15.840 --> 0:16:18.720 big competitor in f t X. Well what is the 0:16:18.800 --> 0:16:22.400 market missing though, because you know that could be one narrative, Cathy. 0:16:22.520 --> 0:16:24.720 But at the same time, we haven't exactly seen shares 0:16:24.760 --> 0:16:27.440 of coin based rally since f t x is collapse. 0:16:27.640 --> 0:16:30.480 Do you think to you that represents potentially broader concern 0:16:30.560 --> 0:16:35.080 about just people's interest in crypto following ft x is collapse. No, 0:16:35.320 --> 0:16:38.880 I think it's more fear. I think many people say, 0:16:38.920 --> 0:16:42.040 we don't know what we don't know? Uh and uh 0:16:42.400 --> 0:16:45.040 so what we do is we step back, you know, 0:16:45.160 --> 0:16:47.840 put a little perspective into the situation here, and what 0:16:47.960 --> 0:16:51.280 do we have? Many people are saying, well, okay, is 0:16:51.360 --> 0:16:54.640 this another lehman? Could this be uh you know, could 0:16:54.720 --> 0:16:57.880 could we see the domino effect here? I've just given 0:16:57.960 --> 0:17:02.720 you one reason why the banking system back in oh 0:17:02.880 --> 0:17:05.879 eight oh nine trillions and trillions of dollars, and it 0:17:06.000 --> 0:17:10.040 was the global banking system. Right now we have it 0:17:10.160 --> 0:17:16.120 seems from ft X five to ten billion dollars in creditors. 0:17:16.720 --> 0:17:21.200 If as h as f t X has filed bankruptcy, 0:17:21.320 --> 0:17:24.480 they will be making claims. If you look at Lehman, 0:17:24.720 --> 0:17:28.800 that was one point to trillion dollars in claims. So 0:17:28.920 --> 0:17:32.520 again just trying to put perspective, this is fraud. This 0:17:32.800 --> 0:17:36.400 is made off, made off with sixty four billion dollars 0:17:36.880 --> 0:17:40.840 in claims. Again f t X five to ten billion. 0:17:41.200 --> 0:17:42.879 And when I switch gears if I can, and I 0:17:42.960 --> 0:17:46.320 was thinking about Twitter and Tesla, how do you make 0:17:46.440 --> 0:17:49.160 sense of Elon Musk? So when you know you've talked 0:17:49.200 --> 0:17:51.440 to you've been investor in Tesla for a long time, 0:17:51.760 --> 0:17:55.479 are you comfortable with his actions around Twitter of firing 0:17:55.560 --> 0:17:58.720 people hiring them back? Um, you know the verified check. 0:17:59.359 --> 0:18:01.400 Do you feel comfortable with this name? And I should 0:18:01.440 --> 0:18:03.879 put out that right. You own private shares of Twitter, 0:18:03.920 --> 0:18:06.680 and I have talked about wanting to own more. Yes, 0:18:06.800 --> 0:18:11.040 we do. We we saw we owned Twitter for quite 0:18:11.080 --> 0:18:14.119 a while and we sold it into the rumors that 0:18:14.800 --> 0:18:17.639 Ellen was going to buy it because we knew there 0:18:17.680 --> 0:18:20.560 would be a lot of controversy around that, so it 0:18:20.720 --> 0:18:22.840 moved into the sixties. I think it got to seventy 0:18:22.920 --> 0:18:28.359 and we sold there and have been watching. UM have 0:18:28.520 --> 0:18:30.439 been watching from the sidelines. But if you look at 0:18:30.520 --> 0:18:35.040 that model longer run, it has not delivered on the promise. 0:18:35.320 --> 0:18:40.520 And you know, I think opening up the algorithms, which 0:18:40.600 --> 0:18:44.000 we think he will do, and taking away the kind 0:18:44.080 --> 0:18:48.960 of human driven censorship and UH, and and allowing the 0:18:49.040 --> 0:18:52.560 transparency of the algorithms that they do put put out there, 0:18:52.880 --> 0:18:55.520 you know, allowing people to question them. I think it's 0:18:55.520 --> 0:18:58.760 going to be very healthy. If you look at the 0:18:59.600 --> 0:19:02.920 daily average users, I think the various metrics that you 0:19:03.000 --> 0:19:06.680 can count daily, they have been going up dramatically. So 0:19:07.400 --> 0:19:09.440 you know, if you I know a lot of people 0:19:09.520 --> 0:19:14.200 who who you know, basically UH, decided to quit Twitter 0:19:15.000 --> 0:19:18.480 because they didn't like the kind of censorship and so 0:19:18.640 --> 0:19:20.760 forth that was going on. So I actually like what 0:19:20.880 --> 0:19:24.280 he's doing. And that was Kathy Wood with ARC Investments 0:19:24.359 --> 0:19:28.080 speaking with Bloomberg Business Week. Catch the program weekday afternoons 0:19:28.160 --> 0:19:32.080 on Bloomberg Radio and stream the video feed live on YouTube. 0:19:32.200 --> 0:19:35.760 And Bloomberg Quicktake from two to five pm Eastern Time. 0:19:36.280 --> 0:19:39.920 Futures are higher, SMP futures of five points down, futures 0:19:39.960 --> 0:19:43.440 of thirty seven, NASDAD futures up three points. Ten year 0:19:43.560 --> 0:19:48.080 treasury unchanged the yield at three point seven five. Much 0:19:48.119 --> 0:19:50.560 more still to come. On this Wednesday morning edition of 0:19:50.600 --> 0:19:53.119 Bloomberg Daybreak, We'll check the markets and bring you the 0:19:53.200 --> 0:19:56.199 latest news in business, e economics and finance. Stay with us. 0:19:56.840 --> 0:20:09.720 This is Bloomberg Bloomberg eleven three oh weather mostly sunny 0:20:09.800 --> 0:20:12.320 today going up to fifty five degrees, down to thirty 0:20:12.359 --> 0:20:15.800 five with clear skies tonight, and for Thanksgiving Day, mostly sunny, 0:20:15.920 --> 0:20:24.560 going up to fifty degrees. Broadcasting live from the Bloomberg 0:20:24.640 --> 0:20:29.120 Interactive Broker Studio in New York, Bloomberg Living Freedom to Washington, 0:20:29.200 --> 0:20:33.280 d C, Bloomberg to Boston, Bloomberg one O six one 0:20:33.400 --> 0:20:36.840 to San Francisco, Bloomberg Nun sixty to the Country, Sirius 0:20:37.000 --> 0:20:39.560 XM Chado one nine Tea and around the globe the 0:20:39.640 --> 0:20:43.520 Bloomberg Business app and Bloomberg Radio dot Com. This is 0:20:43.560 --> 0:20:53.400 Bloomberg Daybreak. It's five thirty on Wall Street. Good Wednesday morning. 0:20:53.480 --> 0:20:56.080 I'm any Morris. I'm Nathan Hagar. We're about four hours 0:20:56.080 --> 0:20:57.879 away from the open of US trading. Let's get you 0:20:57.960 --> 0:20:59.240 up to date on the news he needs to know 0:20:59.320 --> 0:21:01.119 at this hour. But in with the fallout from the 0:21:01.160 --> 0:21:04.280 collapse of ft X, the founder of the crypto exchanges 0:21:04.400 --> 0:21:07.800 now issuing an apology. Bloomberg Steve Rappaport joins US Live 0:21:07.840 --> 0:21:10.359 with the latest morning Steve, Good morning, Nathan and Amy. 0:21:10.440 --> 0:21:13.600 In a letter to employees, Sam Bankman Freed expressed regret 0:21:13.720 --> 0:21:16.639 for his oversight failure, adding he wishes the company had 0:21:16.680 --> 0:21:20.119 done many many things differently. The disgraced ft X founder 0:21:20.200 --> 0:21:23.880 described a perfect storm of credit squeezes, virtual coin selloffs, 0:21:23.960 --> 0:21:25.800 and a run on the bank that brought the crypto 0:21:25.880 --> 0:21:29.040 exchange down two weeks ago. Bankman Freed also disclosing the 0:21:29.080 --> 0:21:33.119 company's collateral spiral to nine billion dollars from sixteen billion. 0:21:33.400 --> 0:21:37.080 Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Al Right, Steve, 0:21:37.160 --> 0:21:40.120 thank you, And another major story we are following from overseas, 0:21:40.200 --> 0:21:43.639 credit sweee warning of a massive fourth quarter loss. The 0:21:43.680 --> 0:21:46.040 Swiss bank says it will face a law succeeding one 0:21:46.080 --> 0:21:49.000 and a half billion dollars for the three final months 0:21:49.040 --> 0:21:52.000 of the year. Also overseas, amy there were violent protests 0:21:52.040 --> 0:21:55.040 at Apple's main iPhone making plant in China. Hundreds of 0:21:55.119 --> 0:21:58.640 workers at the Fox con factory battled security personnel after 0:21:58.720 --> 0:22:01.440 almost a month of tougher restrictions intended to quash a 0:22:01.520 --> 0:22:04.000 COVID outbreak, and Nathan back here in the U S. 0:22:04.080 --> 0:22:07.800 Twitter turmoil continues. Bloomberg sources say after recent job cuts, 0:22:08.119 --> 0:22:10.560 there may not be enough in house legal expertise at 0:22:10.600 --> 0:22:13.960 Twitter to know which outside law firms are handling certain matters. 0:22:14.400 --> 0:22:17.440 Even so, Elon Musk still has his fair share of supporters, 0:22:17.480 --> 0:22:22.119 including Arc Investment CEO Cathy Would. Various metrics that you 0:22:22.200 --> 0:22:25.600 can count daily. They have been going up dramatically. So 0:22:26.280 --> 0:22:28.760 I know a lot of people who decided to quit 0:22:28.840 --> 0:22:32.000 Twitter because they didn't like censorship and so forth that 0:22:32.119 --> 0:22:34.320 was going on. So I actually like what he's doing. 0:22:34.720 --> 0:22:37.480 Cathy Would, with Arc Investment, made the comments to Bloomberg 0:22:37.520 --> 0:22:40.240 Business Week, which you can catch weekdays at two pm 0:22:40.280 --> 0:22:44.120 Wall Street time on Bloomberg Radio and streaming live on YouTube. 0:22:44.280 --> 0:22:46.280 Turning to the economy, were three weeks away from the 0:22:46.320 --> 0:22:49.760 next FED decision. Kansas City Fed President Esther George says 0:22:49.840 --> 0:22:51.880 one thing that could push the Central Bank to keep 0:22:52.000 --> 0:22:55.520