WEBVTT - Bloomberg Daybreak: November 18, 2022 - Hour 1 (Radio) 0:00:01.800 --> 0:00:05.199 Live from the Bloomberg Interacting Broker Studios. This is Bloomberg 0:00:05.280 --> 0:00:09.039 day Break for Friday, November eighteen two. Coming up this hour, 0:00:09.200 --> 0:00:13.080 a leadership change on Capitol Hill. Nancy Pelosi withdraws as 0:00:13.160 --> 0:00:16.000 Democratic leader. Stock Center this last day of the week, 0:00:16.079 --> 0:00:19.960 looking to reverse two days of losses. Elon Musk's ultimatum 0:00:20.040 --> 0:00:23.680 spur an exodus at Twitter and Amazon says job cuts 0:00:23.680 --> 0:00:26.920 could continue into next year. Buffalo, New York is getting 0:00:26.960 --> 0:00:30.760 slammed by a major snowstorm. Plus today, the US has 0:00:30.800 --> 0:00:34.920 condemned North Korea's latest weapons test. On Michael lar More AHLF, 0:00:35.000 --> 0:00:37.680 I'm John Stashnoward Sports, Aaron Judge named m v P. 0:00:37.840 --> 0:00:40.400 The Titans beat the Packers, the Nets and Devils won, 0:00:40.520 --> 0:00:45.800 the Rangers and Islanders law. That's all strain ahead on 0:00:45.880 --> 0:00:51.560 Bloomberg Daybreak on Bloomberg e Living freon New York, Bloomberg one, Washington, 0:00:51.680 --> 0:00:55.760 d C, Bloomberg one oh six one, Boston, Bloomberg nine sixties, 0:00:55.800 --> 0:00:59.640 San Francisco, Sirius x M one nineteen and around the 0:00:59.680 --> 0:01:03.000 world on Bloomberg Radio dot Com and via the Bloomberg 0:01:03.040 --> 0:01:11.720 Business App. Good Friday Morning. I'm Amy Morris and I'm 0:01:11.760 --> 0:01:14.920 Nathan Hagar futures are pointed higher this morning. We're coming 0:01:14.959 --> 0:01:16.480 up to five oh one on Wall Street, and we 0:01:16.560 --> 0:01:18.959 check the markets every fifteen minutes during the trading day. 0:01:18.959 --> 0:01:22.160 On bloomberg SMP futures are up ten points, Staff futures 0:01:22.200 --> 0:01:25.520 up forty eight. Nastack futures are higher by thirty six points. 0:01:26.160 --> 0:01:29.640 The tenure treasury is down ten thirty seconds. The old 0:01:29.680 --> 0:01:31.880 three point eight zero percent yield on the two year 0:01:32.280 --> 0:01:35.640 four point four eight percent. The docks in Germany is 0:01:35.720 --> 0:01:38.280 up seven tenths per cent, the CACK and Paris up 0:01:38.360 --> 0:01:41.360 six tenths of one percent. Nim X screwed is up 0:01:41.400 --> 0:01:44.720 four tenths percent or thirty cents at eighty one cents 0:01:44.720 --> 0:01:48.280 of barrel. Comex gold up two tenths percent at ten 0:01:48.320 --> 0:01:50.840 announced and the euro one point zero three seven eight 0:01:50.880 --> 0:01:54.400 against the dollar. Amy Nathan, we beget in Washington, where 0:01:54.400 --> 0:01:57.280 reaction is still pouring into Nancy Pelosi stepping down his 0:01:57.360 --> 0:02:00.200 House Democratic leader. The move opens the way were a 0:02:00.320 --> 0:02:05.560 general generational change in leadership, Democrats now rallying behind Brooklyn 0:02:05.640 --> 0:02:09.200 native Actium Jefferies as their next leader. We spoke with 0:02:09.240 --> 0:02:12.520 former New York Congressman and Democratic Caucus Chair Joe Crowley 0:02:12.560 --> 0:02:15.240 about the shift. I think he will be cordial. I 0:02:15.280 --> 0:02:18.480 think he'll be professional. Um, they may not agree and 0:02:18.520 --> 0:02:20.120 may not even like each other, but I don't think 0:02:20.120 --> 0:02:23.080 it's gonna stop a team from doing what he thinks 0:02:23.080 --> 0:02:26.080 is the best interest of the American people. And I 0:02:26.120 --> 0:02:29.200 think that is paramount there. Former New York Congressman Toe 0:02:29.280 --> 0:02:33.080 Crowley spoke with Our Washington corresponded Joe Matthew on Bloomberg's 0:02:33.120 --> 0:02:35.400 sound on. You can catch the show weekday afternoons at 0:02:35.400 --> 0:02:38.399 five pm Wall Street Time on Bloomberg Radio. All right, Amy, 0:02:38.440 --> 0:02:41.200 Now let's talk markets. Stocks enter this final day of 0:02:41.200 --> 0:02:43.919 the week, coming off two days of losses. All Spring 0:02:43.960 --> 0:02:46.800 Global Investments head of Active Equity and Milletti says, we 0:02:46.840 --> 0:02:49.200 may be closing in on a bottom. If we're headed 0:02:49.200 --> 0:02:52.800 into recession, if we're headed into this environment at higher rates, 0:02:52.880 --> 0:02:59.080 higher inflation, how can really, you know, risk athics, meme stocks, cryptocurrency, 0:02:59.120 --> 0:03:03.200 things like that continue to be beater, go up or 0:03:03.280 --> 0:03:08.000 be stable. And the fact that we're finally seeing breakdowns 0:03:08.240 --> 0:03:13.399 in those markets is a welcoming sign. It means that 0:03:13.919 --> 0:03:18.280 we're getting closer to the you know, maybe to the 0:03:18.320 --> 0:03:21.480 bottoming period all spring global investments and we letting notes. 0:03:21.560 --> 0:03:24.320 The SNPs lowest level came just last month, with a 0:03:24.360 --> 0:03:28.280 reading just shy of now weighing on markets more hawkey 0:03:28.320 --> 0:03:30.880 is talk from the Fed. St. Louis Fed President James 0:03:30.880 --> 0:03:34.239 Bullard is saying interest rates should rise to at least 0:03:34.280 --> 0:03:38.280 five percent to curb inflation. The policy rates still isn't 0:03:38.480 --> 0:03:41.800 at a zone that might be considered sufficiently restrictive. To 0:03:41.880 --> 0:03:45.640 get to this sufficiently restrictive level of policy, will need 0:03:45.680 --> 0:03:49.080 to increase the policy rate further. St. Louis Fed President 0:03:49.160 --> 0:03:52.000 James Bullard does not appear to be alone in that assessment. 0:03:52.120 --> 0:03:55.440 Is tough talk being echoed by Minneapolis Fed President Neil 0:03:55.520 --> 0:03:59.040 Cash carry We're all united in our commitment to getting 0:03:59.080 --> 0:04:02.160 inflation back onto our two percent target. It's an open 0:04:02.280 --> 0:04:04.760 question of how far we're going to have to go 0:04:04.920 --> 0:04:07.720 with interest rates to bring that demand down into balance. 0:04:07.800 --> 0:04:09.720 We have raised interest rates a lot this year, so 0:04:09.800 --> 0:04:12.120 there's a lot of tightening in the pipeline. We have 0:04:12.200 --> 0:04:15.160 not felt the full effects yet, and yet inflation is 0:04:15.200 --> 0:04:19.160 still very high. Minneapolis Fed President Neil Cash Carrey says 0:04:19.200 --> 0:04:21.679 the full effect of rate hikes may not be felt 0:04:21.680 --> 0:04:23.800 for a year or more. All right, let's turn to 0:04:23.839 --> 0:04:26.320 corporate news now Amy, where the focus is back on 0:04:26.440 --> 0:04:30.080 Elon Musk, the self proclaimed chief twit is finding some 0:04:30.160 --> 0:04:33.480 of his ultimatums at Twitter are falling flat. That Baxter 0:04:33.600 --> 0:04:35.680 has the story from our Bloomberg nine sixty news room 0:04:35.680 --> 0:04:38.479 in San Francisco. The latest ultimate um to commit to 0:04:38.520 --> 0:04:42.080 the company's new hardcore work environment or leave the company. 0:04:42.080 --> 0:04:45.039 By the deadline to sign the agreement, hundreds of employees 0:04:45.080 --> 0:04:49.200 had refused, with many postings that now familiar salute, which 0:04:49.240 --> 0:04:51.880 is the sign that they are leaving the company. How 0:04:51.920 --> 0:04:55.320 this prompted must to change his work at home policy 0:04:55.640 --> 0:04:58.080 and leave it up to managers to ensure the company 0:04:58.120 --> 0:05:03.080 that the workers are making an exce contribution. The question remains, though, 0:05:03.120 --> 0:05:07.119 how many employees either will remain or will return, whether 0:05:07.160 --> 0:05:10.400 there'll be enough to service a system in San Francisco. 0:05:10.480 --> 0:05:12.920 I'm at Baxter Bloomberg Gay break all right, thank you, 0:05:13.080 --> 0:05:15.120 Ed and wild. Musk is cutting staff in the U 0:05:15.200 --> 0:05:18.000 as it may be a different picture overseas. The e 0:05:18.200 --> 0:05:21.520 USE Internal Market Commissioner says Musk will have to increase 0:05:21.560 --> 0:05:25.120 the number of Twitter moderators in Europe. He also wants 0:05:25.160 --> 0:05:29.240 Musk to share Twitter's algorithms. Terry Brayton made those comments 0:05:29.240 --> 0:05:31.880 in an interview with France Info. Well maybe the painted 0:05:32.000 --> 0:05:35.360 Amazon may not end any time soon. CEO Andy Jesse 0:05:35.520 --> 0:05:37.760 says the e commerce giant will be cutting jobs into 0:05:37.839 --> 0:05:41.080 next year as it adjusts to business conditions. We get 0:05:41.120 --> 0:05:44.640 that story from Bloomberg's Charlie Pellett. These represent his first 0:05:44.680 --> 0:05:48.640 public comments about the cost reduction plans roiling Amazon since 0:05:48.640 --> 0:05:51.960 reports that are planned to wipe out about ten thousand jobs. 0:05:52.279 --> 0:05:55.360 In a statement, Jesse said, quote leaders across the company 0:05:55.560 --> 0:05:59.279 are working with their teams and looking at their workforce levels, 0:05:59.440 --> 0:06:02.880 investment they want to make in the future, and prioritizing 0:06:02.960 --> 0:06:06.000 what matters most to customers and the long term health 0:06:06.040 --> 0:06:10.240 of our businesses. Some employees posting the company message boards 0:06:10.240 --> 0:06:13.159 have been critical of Jesse being silent this week since 0:06:13.200 --> 0:06:16.080 news of the job cuts became public in New York. 0:06:16.160 --> 0:06:19.520 Charlie pet Bloomberg Daybreak. All right, thank you, Charlie. Taking 0:06:19.560 --> 0:06:21.680 a look at some stocks on the move this morning. 0:06:21.760 --> 0:06:25.120 Shares of applied Materials are up four percent. The ship 0:06:25.160 --> 0:06:28.520 equipment maker gave a sales forecast that beat estimates. Thanks 0:06:28.560 --> 0:06:31.920 to supply chain improvements. Shares of Gap are up almost 0:06:31.960 --> 0:06:34.880 eight percent comparable sales for the third quarter, top to 0:06:35.040 --> 0:06:38.680 estimates at Gap and another retailer, Ross Stores, is up 0:06:38.680 --> 0:06:42.160 sixteen percent. That's after boosting its full year forecast and 0:06:42.240 --> 0:06:45.080 despite of the termoil from f t X. Amy bitcoins 0:06:45.080 --> 0:06:47.400 heading for a weekly game. The tokens up about three 0:06:47.440 --> 0:06:50.080 percent this week, while engage of the leading hundred virtual 0:06:50.120 --> 0:06:53.960 coins has added about one percent. That's a sharp contrast 0:06:54.080 --> 0:06:57.480 to last week, when Bitcoin slid twenty three percent as 0:06:57.560 --> 0:07:01.760 st Sam Bankman Freed's ft X empire collapsed. Checking Bitcoin 0:07:01.920 --> 0:07:07.920 right now, it's up four percent at sixte SMP futures 0:07:07.920 --> 0:07:11.440 are up nine points, STOUT futures up, NASAC Future is 0:07:11.520 --> 0:07:14.280 up thirty five, the tenure Treasury down ten thirty seconds, 0:07:14.320 --> 0:07:17.200 the yield three point eight zero percent. Local headlines in 0:07:17.280 --> 0:07:24.280 a check of sports. Next to this is Bloomberg. Thank you, Nathan. 0:07:24.320 --> 0:07:26.600 It is five oh seven on Wall Street. Let's bring 0:07:26.680 --> 0:07:28.680 in Michael bar with more on what else is going 0:07:28.720 --> 0:07:31.600 on in New York and around the world. Good morning, Michael, 0:07:31.720 --> 0:07:35.520 Good morning Amy. Lake effects Snow is burying parts of 0:07:35.560 --> 0:07:39.120 the midwest and northeast. In western New York. A driving 0:07:39.200 --> 0:07:42.120 van is in effect for all of Erie County, home 0:07:42.240 --> 0:07:46.320 to nearly one million people. This is considered an extreme event, 0:07:46.560 --> 0:07:50.240 an extreme weather event that means it's dangerous. It also 0:07:50.320 --> 0:07:53.520 means it's life threatening. New York Governor Kathy Oakele says 0:07:53.520 --> 0:07:55.880 at least three ft of snow is forecast by the 0:07:55.960 --> 0:07:58.360 end of the weekend. The word has been out nationally 0:07:59.160 --> 0:08:03.240 statewide locally to all the commercial truck drivers. You need 0:08:03.360 --> 0:08:05.080 to stay off the New York State through A and 0:08:05.120 --> 0:08:07.600 the other roads to be identified during the storm event 0:08:07.680 --> 0:08:10.720 for your protection but also the protection of other motors 0:08:10.800 --> 0:08:14.400 on the road. Governor Hokel in November of a lake 0:08:14.480 --> 0:08:17.560 effect system dumped more than five feet of snow on 0:08:17.760 --> 0:08:21.480 western New York had left thirteen people dead. New York 0:08:21.520 --> 0:08:24.920 Governor Hokel announced that construction of a new terminal at 0:08:25.000 --> 0:08:28.800 JFK Airport would begin early next year, following a pause 0:08:28.880 --> 0:08:31.760 and the project due to the pandemic. According to a 0:08:31.800 --> 0:08:35.920 statement from Hocal's office, the new terminal, Terminal six, is 0:08:36.040 --> 0:08:39.520 a privately financed development that is expected to cost around 0:08:39.559 --> 0:08:42.960 four point two billion dollars. The first phase is expected 0:08:43.000 --> 0:08:46.480 to be done by six New Jersey Governor Phil Murphy 0:08:46.520 --> 0:08:49.200 and his wife paid one point seventy nine million dollars 0:08:49.280 --> 0:08:53.120 in state and federal taxes in one according to a 0:08:53.280 --> 0:08:56.920 tax return summary released by his office. The Democratic governor 0:08:57.000 --> 0:09:01.240 also donated almost seven hundred thousand dollars. The couple reported 0:09:01.280 --> 0:09:05.559 federal taxable income of almost five million dollars. Murphy is 0:09:05.600 --> 0:09:09.240 a retired senior director at Goldman Sex. North Korea has 0:09:09.320 --> 0:09:13.000 fired an intercontinental ballistic missile that landed near Japanese waters, 0:09:13.360 --> 0:09:16.320 in the second major weapons test this month that showed 0:09:16.320 --> 0:09:19.439 the potential ability to launch nuclear strikes on all of 0:09:19.520 --> 0:09:22.439 the US mainland. The U s quickly slammed the launch 0:09:22.480 --> 0:09:25.640 and vowed to take all necessary measures to guarantee the 0:09:25.720 --> 0:09:29.280 safety of its mainland and allies. South Korea and Japan, 0:09:29.880 --> 0:09:33.280 Vice President Kamala Harris and Thailand for the Asia Pacific 0:09:33.320 --> 0:09:37.679 Economic Cooperation Leaders Summit together. The country's represented here will 0:09:37.720 --> 0:09:44.240 continue to earthe more Korea to commit. Meanwhile, China and 0:09:44.320 --> 0:09:47.640 Russia have opposed US moves to tough and sanctions against 0:09:47.720 --> 0:09:50.800 the North. A final Senate vote to pass legislation to 0:09:50.880 --> 0:09:56.240 protect the right of Thanksgiving Thanksgiving holiday rather that the 0:09:56.360 --> 0:09:58.959 same Sex marriage is going to be pushed until after 0:09:59.280 --> 0:10:02.559 the Thanksgiving holiday. Global News twenty four hours a day 0:10:02.640 --> 0:10:05.600 on air and on Bloomberg Quicktake, powered by more than 0:10:06.040 --> 0:10:08.680 seven hundred journalists and analysts more than a hundred twenty countries. 0:10:08.920 --> 0:10:11.640 Michael Barr, this is Bloomberg in all right, thank you, Michael, 0:10:13.600 --> 0:10:15.600 gotten out. But the Sports Report brought to you botch 0:10:15.679 --> 0:10:18.400 ry stat Audi. Here's John dash Our say Andy, There'd 0:10:18.440 --> 0:10:21.160 been some talk that despite what Aaron Judge was doing 0:10:21.240 --> 0:10:24.040 hitting all those home runs, what Showy Otani was doing 0:10:24.440 --> 0:10:27.920 hitting and pitching was worthy of a repeat American League 0:10:28.000 --> 0:10:30.199 MVP Award. But in the end the vote was lopsided. 0:10:30.280 --> 0:10:33.600 Judge got twenty eight first place votes, Otani only two, 0:10:33.720 --> 0:10:35.360 and Judge in the season where he, of course had 0:10:35.400 --> 0:10:38.480 a record sixty two home runs. First Yankee outfield that 0:10:38.480 --> 0:10:40.480 will be named m v p SS Mickey Mantle. In 0:10:40.559 --> 0:10:44.000 nineteen sixty two, the Cardinals Paul Goldsmith won in the 0:10:44.080 --> 0:10:46.000 National League. What I went for the Nets in Portland, 0:10:46.040 --> 0:10:47.760 A tip in with less than a second ago by 0:10:47.880 --> 0:10:50.120 Royce O'Neil in a one O nine, one O seven 0:10:50.160 --> 0:10:53.440 went over the Blazers. Kevin Durant scored thirty five obviously 0:10:53.520 --> 0:10:56.319 made some comments about the lack of talent around him, 0:10:56.400 --> 0:10:59.280 but O'Neil at a triple double and Ben Simmons at 0:10:59.320 --> 0:11:02.000 his best game as a Natty Sports fifteen next already 0:11:02.040 --> 0:11:03.680 two and oh on their trip. They're playing tonight at 0:11:03.720 --> 0:11:06.679 Golden State overtime in the NHL. They'll win for the 0:11:06.800 --> 0:11:09.839 Devil's another win three two in Toronto to strich their 0:11:09.840 --> 0:11:13.640 winning streak to eleven, and OT lost for the Rangers 0:11:13.679 --> 0:11:16.080 three two in Seattle. Vincent trocha Hald tied the game 0:11:16.120 --> 0:11:18.960 of two minutes left. The Islanders lost in Nashville five 0:11:19.040 --> 0:11:21.400 to four. St. John's Now four and oh beat Nebraska 0:11:21.480 --> 0:11:25.440 by twenty in Brooklyn. Arizona State beat Michigan by twenty five. 0:11:25.760 --> 0:11:28.760 Thursday Night football in Green Bay, Tennessee won twenty seven 0:11:28.840 --> 0:11:31.920 to seventeen. Ryan Tannehill outplay at Aaron Rodgers twenty two 0:11:32.000 --> 0:11:34.800 of twenty seven, three hundred and thirty three passing yards, 0:11:34.840 --> 0:11:38.080 two touchdowns. Derrick Henry Scorey also threw a TV pass 0:11:38.120 --> 0:11:40.679 and the Titans have won seven or last eight. Packers 0:11:40.760 --> 0:11:42.679 have lost six of the last seven. The Eagles have 0:11:42.720 --> 0:11:47.240 signed veteran defensive tackle and Dominck ensue. Sunday's Brown's Bills 0:11:47.320 --> 0:11:50.440 game moved out of snowy Buffalo. It'll be played indoors 0:11:50.559 --> 0:11:54.080 in Detroit. John stash Ellard Bloomberg Sports Team, all right, 0:11:54.160 --> 0:11:57.640 thank you, John. Futures are higher snpup fourteen points, DAL 0:11:57.760 --> 0:12:00.440 futures of seventy four NASDAC features of five D one. 0:12:01.040 --> 0:12:08.760 This is Bloomberg. The Bloomberg Sports Report was brought to 0:12:08.800 --> 0:12:10.959 you by Audie. Don't let someone else drive off in 0:12:11.000 --> 0:12:13.960 the OUTI model you've always wanted. Visit your local try 0:12:14.000 --> 0:12:16.360 state autie dealer to get behind the wheel of yours today, 0:12:16.640 --> 0:12:22.560 or visit Autie Offers dot com for more information, markets, 0:12:22.720 --> 0:12:25.760 headlines and breaking news twenty four hours a day at 0:12:25.800 --> 0:12:29.800 Bloomberg dot com, the Bloomberg Business out and at Bloomberg Quicktape. 0:12:30.000 --> 0:12:39.000 This is a Bloomberg Business lash. I'm Nathan Hagar. Futures 0:12:39.040 --> 0:12:41.800 are moving higher this morning. Stocks are looking to snap 0:12:41.840 --> 0:12:44.800 two days of losses triggered by a realization the Federal 0:12:44.880 --> 0:12:48.280 Reserve and other major central banks see no reason to 0:12:48.440 --> 0:12:52.600 pause rate hikes anytime soon. We checked the markets every 0:12:52.640 --> 0:12:54.920 fifteen minutes during the trading day on Bloomberg S and 0:12:54.960 --> 0:12:57.360 p futures right now are up seventeen points. Staff futures 0:12:57.440 --> 0:13:00.320 up a hundred three. Nastack futures are highed by sixty 0:13:00.400 --> 0:13:02.840 four points. The docks in Germany, cac and Paris both 0:13:02.960 --> 0:13:05.560 up one percent right now ten Your treasury is down 0:13:05.679 --> 0:13:07.840 nine thirty seconds the old three point seven nine percent 0:13:07.920 --> 0:13:10.280 yould on the two year four point four seven percent. 0:13:10.679 --> 0:13:12.920 Nime X screws up almost a half percent of thirty 0:13:12.960 --> 0:13:15.160 seven cents at eighty two. One of barrel comics gold 0:13:15.200 --> 0:13:19.560 is up two tenths percent, three dollars seventy cents higher atounts. 0:13:19.920 --> 0:13:22.120 The euro is trading at one point zero three seven 0:13:22.160 --> 0:13:24.120 two against the dollar right now. The British pound one 0:13:24.200 --> 0:13:27.439 point one five a en one thirty nine point nine 0:13:27.520 --> 0:13:30.000 three tenday, I'm all street time. We get existing home 0:13:30.080 --> 0:13:33.920 sales and the October leading index. It's Bloomberg business flash. 0:13:34.040 --> 0:13:36.040 Now here's Michael Barr with more on what's going on 0:13:36.120 --> 0:13:39.040 around the world. Good morning, Michael, Good morning Nathan. North 0:13:39.120 --> 0:13:42.720 Korea has fired an intercontinental ballistic missile that landed near 0:13:42.880 --> 0:13:46.480 Japanese waters. It's the second major weapons test this month 0:13:46.559 --> 0:13:50.000 that showed a potential ability to launch nuclear strikes on 0:13:50.200 --> 0:13:53.719 all of the US mainland. The Biden administration told a 0:13:53.840 --> 0:13:57.360 judge Saudi Crown Prince Mohammed Ben Solomon cannot be sued 0:13:57.400 --> 0:14:00.679 in the US over the murder of journalists Jamal Khogi 0:14:00.840 --> 0:14:04.240 because as a head of a government, he is immune. 0:14:04.760 --> 0:14:07.720 If the judge adopts the US finding, it would effectively 0:14:07.920 --> 0:14:11.640 end the lawsuit filed by Kashogis fiance. Same in the NBA, 0:14:11.840 --> 0:14:14.520 the Nets lost. In the NHL, the Rangers lost to 0:14:14.559 --> 0:14:17.480 the Kraken and OT three two. The Devil's won their 0:14:17.520 --> 0:14:20.400 eleventh straight, this one in OT against the Maple Leaves 0:14:20.440 --> 0:14:23.840 three to The Islanders lost the Bruins one. Capitals lost 0:14:23.880 --> 0:14:26.520 in a shootout to the Blues five four. In football, 0:14:26.600 --> 0:14:30.800 the Titans down the Packers seventeen. In baseball, the Yankees 0:14:30.840 --> 0:14:33.680 Aeron Judge won the a L M v P. The 0:14:33.760 --> 0:14:37.480 Cardinals Paul Goldschmidt won the nl Honor. Global Needs twenty 0:14:37.520 --> 0:14:40.120 four hours a day on air and on Bloomberg Quicktake, 0:14:40.360 --> 0:14:43.200 powered by more than twenty seven hundred journalists and analysts 0:14:43.280 --> 0:14:46.920 more than hundred twenty countries. Michael Barr, this is Bloomberg gaming, 0:14:47.160 --> 0:14:49.680 all right, Thank you, Michael. It is five twenty on 0:14:49.840 --> 0:14:52.920 Wall Street. We're live from the Bloomberg Interactive Broker Studios. 0:14:53.000 --> 0:14:56.800 This is Bloomberg Daybreak. How Speaker Nancy Pelosi stepping down 0:14:56.920 --> 0:15:00.440 from her leadership position as Republicans prepared to take over 0:15:00.520 --> 0:15:03.480 the majority in the House of Representatives. We are jointed 0:15:03.520 --> 0:15:06.600 now by chief US policy strategist Greg Valia at a 0:15:06.760 --> 0:15:09.760 GF Investments. Greg, good morning. Do you thank you for 0:15:09.800 --> 0:15:12.400 taking the time with us today. Were you at all 0:15:12.440 --> 0:15:16.600 surprised by Pelosi's decision? No, not at all, Like good morning, Amy, 0:15:16.720 --> 0:15:21.200 I think that she had telegraphed this for several months 0:15:21.240 --> 0:15:25.120 that she wouldn't continue as as Speaker. But there are 0:15:25.160 --> 0:15:31.000 other factors, obviously her husband's attack, her very frosty relations 0:15:31.120 --> 0:15:35.080 with Kevin McCarthy, but maybe most importantly, a desire to 0:15:35.200 --> 0:15:40.640 start elevating a new generation of republic of Democratic leaders. Yes, 0:15:40.720 --> 0:15:42.600 she did say it was time for a new generation 0:15:42.720 --> 0:15:46.800 to lead the Democrats. Who would that be, Well, Hakeem 0:15:46.880 --> 0:15:49.480 Jeffreys number one. It looks like he is the odds 0:15:49.560 --> 0:15:52.640 on favorite to become speaker. There are others, but I 0:15:52.680 --> 0:15:55.680 think Jefferies is going to be a pretty easy victor 0:15:55.880 --> 0:15:59.280 in the voting for speaker, I was gonna want ask 0:15:59.360 --> 0:16:01.320 you about that. I is wondering if this could cause 0:16:01.800 --> 0:16:05.560 even more of a rift within the Democratic Party where 0:16:05.640 --> 0:16:09.040 progressives and more moderate Democrats might wind up going head 0:16:09.080 --> 0:16:12.480 to head over those leadership positions, or is this an 0:16:12.520 --> 0:16:16.080 opportunity for them to unify. I think it's an opportunity 0:16:16.240 --> 0:16:19.080 to unify. But at the same time, this is going 0:16:19.160 --> 0:16:22.960 to be a very very partisan new session of Congress 0:16:23.280 --> 0:16:26.680 starting in January, when Kevin McCarthy, of course, is the speaker. 0:16:27.400 --> 0:16:31.480 I think that the focus on investigations, especially into Joe 0:16:31.520 --> 0:16:35.840 Biden's affairs, is going to poison the well pretty quickly. Greg, 0:16:36.000 --> 0:16:38.960 let's talk about that. Um Republicans ready to put forth 0:16:39.240 --> 0:16:42.160 their new agenda. One of their issues is going to 0:16:42.240 --> 0:16:46.640 be investigating President Biden in relation to his son, Hunter 0:16:46.760 --> 0:16:51.160 Biden's foreign business deals. What does that tell you about 0:16:51.400 --> 0:16:55.160 the Republican agenda as they go as they take the 0:16:55.360 --> 0:16:58.000 majority in the House. Well, I think it's it shows 0:16:58.080 --> 0:17:00.360 that there's not a lot legislatively they can do with 0:17:00.480 --> 0:17:03.680 a margin of three seats four seats, but they can 0:17:03.840 --> 0:17:06.440 have subpoena power, and I think it will be more 0:17:06.520 --> 0:17:09.600 than just an investigation of Joe Biden, and maybe an 0:17:09.640 --> 0:17:14.400 investigation of our very porous border between the US and Texas. 0:17:14.720 --> 0:17:18.040 It may be an investigation of the origins of COVID, 0:17:18.560 --> 0:17:21.879 of Joe Biden's withdrawal from Afghanistan. The list will go 0:17:21.960 --> 0:17:25.280 on and on, and I think these investigations may overshadow 0:17:25.440 --> 0:17:29.800 any attempt to get much legislation enacted. Let me ask 0:17:29.880 --> 0:17:32.720 you a sidebar question to that, and it's a little esoteric, 0:17:32.840 --> 0:17:39.000 but bear with me. When the electorate watches the House, 0:17:39.520 --> 0:17:43.200 manufactur or not manufacturer, but work on issues like those 0:17:43.280 --> 0:17:46.879 investigations correct, instead of working on things like, you know, 0:17:47.000 --> 0:17:49.639 gas prices, inflation, you know, the bread and butter issues 0:17:49.720 --> 0:17:53.880 that affect voters. Does that eventually impact their vote two 0:17:53.960 --> 0:17:57.760 years later, I'm thinking way out there it could. I mean, 0:17:57.800 --> 0:18:01.359 the Republicans have won are done fairly well in this 0:18:01.520 --> 0:18:05.760 election by saying that they're going to go after excessive 0:18:05.840 --> 0:18:10.679 spending inflation. There are a lot of really legitimate policy issues. 0:18:11.040 --> 0:18:14.080 But if they focus not on that but on simply 0:18:14.160 --> 0:18:19.360 these investigations, it could backfire on them. Politically, Republicans hold 0:18:19.400 --> 0:18:21.720 a slim majority in the House, Democrats hold a slim 0:18:21.760 --> 0:18:24.000 majority in the Senate. Does that tell you anything about 0:18:24.000 --> 0:18:27.320 the electorate itself in the US. Yeah, pretty divided, isn't it. 0:18:27.440 --> 0:18:30.840 I think that that that voters, though, to me, send 0:18:30.920 --> 0:18:34.200 an important, too important signals. Number one, I think that 0:18:34.480 --> 0:18:37.760 the the electorate favors moderates. I think if you get 0:18:37.800 --> 0:18:40.440 too extreme on the left or the right, that makes 0:18:40.560 --> 0:18:44.120 a candidate vulnerable. Number two. I thought the most encouraging 0:18:44.200 --> 0:18:47.280 thing in this election was that there was no significant 0:18:47.600 --> 0:18:51.480 voter fraud. I and many people were worried for the 0:18:51.600 --> 0:18:54.080 last few months that we could have a repeat of 0:18:54.240 --> 0:18:58.680 the very contentious election, would charges a fraud afterwards? That 0:18:58.800 --> 0:19:02.800 hasn't happened. That's very encouraging. Only thirty seconds here, Greg, 0:19:02.920 --> 0:19:06.080 do you anticipate gridlock in the coming Congress or perhaps 0:19:06.119 --> 0:19:10.440 a forced cooperation among lawmakers? Mostly gridlock? I think that 0:19:10.920 --> 0:19:14.280 for the markets that's a good story. Many people in 0:19:14.320 --> 0:19:17.280 the markets think that gridlock is good because it means 0:19:17.560 --> 0:19:20.560 they do less harm. And I think on issue after issue, 0:19:20.840 --> 0:19:23.920 they're just going to spin their wheels, right, Chief US 0:19:24.080 --> 0:19:27.280 policy strategist Grad Value at a g F Investments. It 0:19:27.440 --> 0:19:29.560 is always a pleasure. Thank you very much for joining 0:19:29.640 --> 0:19:32.400 us on this Friday morning. Looking ahead at the next 0:19:32.480 --> 0:19:36.320 Congress and the Republican majority. Looking at futures now s 0:19:36.400 --> 0:19:39.880 and P futures of fourteen points del futures of seventies 0:19:39.920 --> 0:19:44.120 seven nasdath futures of forty nine ten year treasury down 0:19:44.240 --> 0:19:48.160 nine thirty seconds, the yield at three point seven nine 0:19:48.560 --> 0:19:51.080 two year yield at four point four eight percent, much 0:19:51.119 --> 0:19:53.720 more still to come. On this Friday morning edition on 0:19:53.800 --> 0:19:56.040 Bloomberg Daybreak, we'll be checking the markets and bringing you 0:19:56.119 --> 0:19:59.479 the latest news and business economics and finance. Stay with us. 0:19:59.720 --> 0:20:08.760 This is Bloomberg. Bloomberg Daybreak is brought to you by 0:20:08.760 --> 0:20:10.960 the New York Community Trust. Your name will live on 0:20:11.040 --> 0:20:13.159 as a champion of the causes you care about four 0:20:13.280 --> 0:20:15.639 years to come through a charitable bequest to the New 0:20:15.720 --> 0:20:22.920 York Community Trust. Learn more at Philanthropist dot NYC. Broadcasting 0:20:23.000 --> 0:20:26.680 live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.840 --> 0:20:29.920 Bloomberg E Living Free On to Washington, d C, Bloomberg 0:20:30.040 --> 0:20:33.120 ninety nine one to Boston, Bloomberg one O six one 0:20:33.240 --> 0:20:36.680 do San Francisco, Bloomberg M sixteen to the Country, Sirius 0:20:36.840 --> 0:20:39.399 XM CHADO one nine team and around the globe. The 0:20:39.480 --> 0:20:43.359 Bloomberg business app and Bloomberg Radio dot Com. This is 0:20:43.400 --> 0:20:52.120 Bloomberg Daybreak. It's five thirty on Wall Street. Good morning. 0:20:52.160 --> 0:20:55.600 I'm Nathan Hager, I'm Amy Morris. Bloomberg Daybreak is brought 0:20:55.680 --> 0:20:58.760 to you by s EI Asset managers don't get results 0:20:58.840 --> 0:21:01.080 that are off the charts when are solutions are off 0:21:01.119 --> 0:21:04.560 the shelf. Learn how SEI is operating platform can turn 0:21:04.640 --> 0:21:08.119 infrastructure into a competitive advantage at se I C dot 0:21:08.200 --> 0:21:10.520 com slash tech. And we're about four hours away from 0:21:10.520 --> 0:21:12.240 the open of US trading. Amy, let's get you up 0:21:12.240 --> 0:21:13.679 to date on the news you need to know at 0:21:13.720 --> 0:21:17.080 this hour. Beginning in Washington, where Democrats are weighing Nancy 0:21:17.119 --> 0:21:21.679 Pelosi's replacement as House Democratic leader, party is rallying behind Brooklyn, 0:21:21.720 --> 0:21:24.639 New York native Hakim Jeffreys. Former New York Congressman and 0:21:24.720 --> 0:21:27.280 Democratic Caucus Chair Joe Crowley spoke with us about the 0:21:27.280 --> 0:21:31.280 shift and leadership. He's a great orator, he has great skills, 0:21:31.440 --> 0:21:34.800 he's very smart, and uh, I think he knows how 0:21:34.840 --> 0:21:37.960 to build coalitions and that's what's so critical of being congress. 0:21:38.240 --> 0:21:40.480 Former New York Congressman Joe Crowley spoke with our Joe 0:21:40.520 --> 0:21:42.840 Matthew on Bloomberg Sound On. You can catch the show 0:21:42.880 --> 0:21:46.160 week days at five pm Eastern on Bloomberg Radio. Nathan 0:21:46.240 --> 0:21:48.720 out of Markets were stocks Center the last day of 0:21:48.760 --> 0:21:52.080 the week, coming off to losing days, weighing on investor's sentiment. 0:21:52.160 --> 0:21:55.480 More hawk Fed speak. Minneapolis Fed President Neil cash Carey 0:21:55.520 --> 0:21:58.480 says the inflation battle is far from over. We have 0:21:58.600 --> 0:22:00.600 raised interest rates a lot this year, so there's a 0:22:00.680 --> 0:22:03.200 lot of tightening in the pipeline. We have not felt 0:22:03.280 --> 0:22:06.400 the full effects yet, and yet inflation is still very high. 0:22:06.800 --> 0:22:09.600 Minneapolis Fed president Al cash Carrey says the full effect 0:22:09.640 --> 0:22:11.600 of rate hikes may not be felt for a year 0:22:11.760 --> 0:22:15.119 or more. St. Louis Fed President James Bullard made similarly 0:22:15.240 --> 0:22:18.800 hawkish comments, saying interest rates should rise to at least 0:22:18.880 --> 0:22:21.920 five percent. Right Corporate News Now Amy where Twitter turn 0:22:21.960 --> 0:22:25.240 well continues. Elon Musk gave employees at ultimatum to adopt 0:22:25.240 --> 0:22:28.200 to the company's new work environment or leave. Many are 0:22:28.280 --> 0:22:32.000 not signing on, which is reportedly putting Twitter's operations at risk. 0:22:32.400 --> 0:22:35.359 Dan Ives at Wedbush Security says Musk's leadership does not 0:22:35.560 --> 0:22:40.280 inspire much confidence for investors. It's been a circus and 0:22:40.359 --> 0:22:42.679 I think there was a view as a Tessa holder 0:22:43.280 --> 0:22:47.640 that once Musk bought Twitter, it would start to die down, 0:22:47.880 --> 0:22:51.360 but instead it hasn't. Dan Ives of Wedbush says Musk 0:22:51.440 --> 0:22:54.280