Speaker 1: Live from the Bloomberg Interacted Brooker Studios. Is his Bloomberg
Speaker 1: Daybreak for a Monday, December twelve coming up this hour.
Speaker 1: A huge week for central banks, with the Fed, ECB
Speaker 1: and Bank of England all making policy decisions. Treasury Secretary
Speaker 1: Janet Yellen says inflation will be much lower by the
Speaker 1: end of next year. Am JEN makes its biggest acquisition ever,
Speaker 1: and the January six Committee gets a step closer to
Speaker 1: its final report. I'm Amy Morris. New York subway officials
Speaker 1: are looking at hiking fairs, and the area is bracing
Speaker 1: for its first major snow event this season. I'm John
Speaker 1: Stash Howard Sports. The Giants got blown out by Philadelphia,
Speaker 1: the Jets lost in Buffalo, the Nicks beat Sacramento. That's
Speaker 1: all s traded ahead on Bloomberg Daybreak on Bloomberg eleven three,
Speaker 1: on New York, Bloomberg one, Washington, d C, Bloomberg one
Speaker 1: oh six one, Boston, Bloomberg nine sixties, and Francisco Sirius
Speaker 1: x M one nine team and around the world Old
Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business App.
Speaker 1: Good morning, I'm Nathan Hagar, and I'm Karen, Moscow and
Speaker 1: US do index futures around the rise this morning six
Speaker 1: on one on Wall Street, and we check the markets
Speaker 1: all day long here at Bloomberg, with SMP futures up
Speaker 1: nine points or a quarter percent, AL futures up sixty
Speaker 1: two points or two tents of uppercent, and nasday futures
Speaker 1: are up three tents of uppercent or thirty six points.
Speaker 1: The decks in Germany is down about two tents of uppercent. Ten.
Speaker 1: Your treasury of fourteen thirty seconds, you know, three point
Speaker 1: five two percent, and the yield on the two year
Speaker 1: four point three each two percent. Nathan Karen, we begin
Speaker 1: with a big week for central bank decisions, both here
Speaker 1: and abroad. We get the preview this morning from Bloomberg
Speaker 1: Smichael McKee. Are you ready for risk? We have a
Speaker 1: host of major market moving events this week. Tuesday, usc
Speaker 1: P I will weigh on investors views of what the
Speaker 1: Fed will and has to do. Wednesday, the Fed will
Speaker 1: tell us not just a rate move, but new economic
Speaker 1: forecasts and a new dot plot. How high do they
Speaker 1: think US interest rates have to go? How high will
Speaker 1: they have to go in Europe? Well, Thursday, all eyes
Speaker 1: turned to the ECB which will also be moving rates
Speaker 1: up and offering new forecasts. What kind of recession will
Speaker 1: they see? The Bank of England has already forecast contraction,
Speaker 1: but with inflation high, they are expected to raise rates
Speaker 1: again on Thursday. The question on thread Needle Street, when
Speaker 1: do they stop? Michael McKie, Bluemberg daybreak Right, Mike, thanks well.
Speaker 1: So far the juries out on whether central banks are
Speaker 1: winning the war on inflation, but Treasury Secretary Jennet Yellen
Speaker 1: is optimistic. She says prices should be much lower by
Speaker 1: the end of next year. As long as there aren't
Speaker 1: any unexpected shocks to the economy, I believe inflation will
Speaker 1: be lower. Um. I am very hopeful that the labor
Speaker 1: market will remain quite healthy so that people who feel
Speaker 1: good about their finances. In an interview as CBS is
Speaker 1: sixty minutes, Secretary Yellen said ending Russia's war in Ukraine
Speaker 1: would be the single best thing for the global economy.
Speaker 1: She says US support for Ukraine will continue, quote as
Speaker 1: long as it takes. We're doing everything we can to
Speaker 1: bring this war to a conclusion. Of course, we're providing
Speaker 1: considerable help um to Ukraine, both military and economic, and
Speaker 1: listeners in Washington get here sixty minutes from CBS Sunday
Speaker 1: nights at ten on Bloomberg. Support for Ukraine will be
Speaker 1: high on the agenda, Karin, when Group of seven leaders
Speaker 1: meet virtually today. The White House says President Biden spoke
Speaker 1: with Ukrainian President vladimir's Lensky last night to underscore his support.
Speaker 1: The US has promised thirty eight billion dollars in military
Speaker 1: aid and delivered thirteen billion in direct aid to Ukraine
Speaker 1: so far. Meantime, Nathan, the US will send a delegation
Speaker 1: at China on the coming days. The move follows up
Speaker 1: on President Biden's meeting with Shandy's President she Jan Paying
Speaker 1: last month to g Tway. The two countries have plenty
Speaker 1: of disagreements, including over Taiwan and US move to limit
Speaker 1: China's economic and technological influence. Oh Yeah, moves on Capitol
Speaker 1: Hills response to last year's insurrection, Karen. The January six
Speaker 1: Committee has taken another step on its way to producing
Speaker 1: its final report with a new subcommittee meeting, Bloomberg said.
Speaker 1: Baxter reports. The stated purpose of the meeting possible prosecution
Speaker 1: on criminal charges coming out of the insurrection. Congressman Adam
Speaker 1: Schiff on CBS has heard here on Bloomberg. I think
Speaker 1: we're all certainly an agreement that there is evidence of
Speaker 1: criminality here shifts as a committee has been able to
Speaker 1: provide very important information to the d o J. But
Speaker 1: just as important, I think it makes an important statement,
Speaker 1: not a political one, but a statement about the evidence
Speaker 1: of an attack on the institutions for a democracy and
Speaker 1: the peaceful transfer of power. Less than two weeks until
Speaker 1: the curtain comes down in San Francisco, I'm at Baxter
Speaker 1: Bloomberg day Break, Thanks and turning to the markets. Now,
Speaker 1: we have a couple of deals to kick off the week,
Speaker 1: including breaking news in the biotech industry. We get the
Speaker 1: latest live with Bloomberg. Steve A. Rappaport. Good morning, Steve,
Speaker 1: Good morning Karen and Nathan. What a difference in our makes.
Speaker 1: It is now a deal. Mgen will buy Horizon Therapeutics
Speaker 1: at a hundred sixteen dollars and fifty cents per share cash.
Speaker 1: That is the largest acquisition for the company to date,
Speaker 1: and it is almost twenty dollars higher per share than
Speaker 1: Horizon Therapeutics closing price on Friday. Once again, it is
Speaker 1: now official and Jen will buy Horizon Therapeutics in what
Speaker 1: will be the company's largest acquisition to date. Live in
Speaker 1: New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,
Speaker 1: thank you. We also have an acquisition involving Microsoft. That
Speaker 1: company has agreed to buy a stake in the London
Speaker 1: Stock Exchange Group. The deal gives Microsoft a four equity
Speaker 1: holding as part of a new long term strategic partnership,
Speaker 1: part of a broader ten year agreement to help the
Speaker 1: London Stock Exchange owner developed data, analytics and cloud infrastructure
Speaker 1: using Microsoft products. Well staying in London, now, Nathan, we
Speaker 1: have a couple of major stories this morning centered on
Speaker 1: the UK economy. There's fresh growth data from the UK
Speaker 1: as the country rapples with widespread strikes, and we go
Speaker 1: to London and get the latest live at the Bloomberg's
Speaker 1: James to Wilcock, Good Mornings, James, Good morning from a
Speaker 1: frosty UK. Karen. The economy here expanded nor point five
Speaker 1: percent in October as business would covered output loft in
Speaker 1: public holidays after the death of the Queen, but with
Speaker 1: strikes across the country affecting health, transport and education, the
Speaker 1: outlook is much grimmer. You can already see that in hospitality,
Speaker 1: with pubs and restaurants saying Christmas party bookings are as
Speaker 1: bad as they were during COVID as people cancel due
Speaker 1: to rail strikes. The UK government is meeting this morning
Speaker 1: to discuss sending in the army to fill in for
Speaker 1: workers walking out in London. James Wilcock bloom Bag daybreak,
Speaker 1: All right, James, thank you. And in banking news this morning,
Speaker 1: Reuter's is reporting Morgan Stanley plans to cut investment bankers
Speaker 1: annual bonuses in Asia by as much as fifty percent
Speaker 1: this year. According to the report, the scale of those
Speaker 1: cuts in the Asia business could possibly be replicated in
Speaker 1: the US and Europe. Sub futures of eight points, Stafle
Speaker 1: futures of fifty two, Nastack futures higher by thirty two points.
Speaker 1: Straight ahead, your latest local headlines and a check of sports.
Speaker 1: This is Bloomberg Sounds six oh seven on Wall Street.
Speaker 1: One degrees in Central Park, sunny but chilly today. High
Speaker 1: is only near forty degrees getting down to the upper
Speaker 1: twenties tonight. And Amy Morris is here now with more
Speaker 1: on what's going on in New York and around the
Speaker 1: world on this chilly morning, Thank you Nathan. More than
Speaker 1: thirty years after the bombing of pan amp Like one
Speaker 1: oh three over Lockerbee, Scotland that killed two hundred seventy people,
Speaker 1: including thirty eight New Jersey residents, suspect is now in
Speaker 1: US custody. Bert Ammerman's brother Tom from New Jersey, says
Speaker 1: there is no closure. Two daughters at the time, six
Speaker 1: and four, a wife. He was thirty six young. He
Speaker 1: didn't get to live his life. The suspect is expected
Speaker 1: to make a court appearance in Washington, d c. On
Speaker 1: criminal federal charges. New York subway officials are looking to
Speaker 1: avoid a budget disaster. The Metropolitan Transportation Authority says it
Speaker 1: could face a budget gap of nearly three billion dollars
Speaker 1: by The New York Times reports they are considering raising
Speaker 1: the transit system's base fair a couple of times by
Speaker 1: to just over three dollars. It would be the first
Speaker 1: time they've talked about raising fair since the pandemic begin.
Speaker 1: Safety upgrades are coming to railroad crossings in the Hudson Valley.
Speaker 1: Senator Chuck Schumer has unveiled new plans to spend more
Speaker 1: than one hundred million dollars on those improvements. Schumer also
Speaker 1: wants to invest money in Newcastle to build a bridge.
Speaker 1: It is the largest oil spill in Keystone pipeline history,
Speaker 1: more than five eight thousand gallons of crude. Officials say
Speaker 1: they've got to contain for now. Warren Martin is executive
Speaker 1: director of Kansas Strong, a nonprofit organization that educates people
Speaker 1: about the oil and gas industry. This oil spill is
Speaker 1: a little bit different than some of the past pipeline
Speaker 1: spills because it involves a body of water, and so
Speaker 1: it's not real certain how the e p A Is
Speaker 1: going to respond to that. They have to approve starting
Speaker 1: back up the pipeline, and so there's a remediation process
Speaker 1: that takes place to clean up all the oil to
Speaker 1: analyze a pipeline. Industry insiders believe the pipeline will be
Speaker 1: up and running again around December twenty NASA's Oriyan spacecraft
Speaker 1: splashed down on the Pacific off the coast of Mexico yesterday,
Speaker 1: bringing a successful end to a twenty five day test
Speaker 1: flight that sent an unscrewed vehicle around the Moon and
Speaker 1: back to Earth. Artemis one helps paved the way for
Speaker 1: NASA's program to return humans to the surface of the Moon.
Speaker 1: Global News twenty four hours a day on air, and
Speaker 1: Don Bloomberg Quick Take, powered by more than twenty journalists
Speaker 1: and analysts in more than one twenty countries. I'm Amy Morris.
Speaker 1: This is Bloomberg, Nathan. Thank you, Amy. Six o nine
Speaker 1: on Wall Street. Time for the Bloomberg Sports Update, brought
Speaker 1: to you by Trice stayed out he Here's John stash Our.
Speaker 1: Thanks DAF and everyone knows. Gonna be a tough Sunday
Speaker 1: for the Jets and Giants. Showing enough, both teams lost.
Speaker 1: Jets were in it in Buffalo. Their defense again played well,
Speaker 1: but for the second straight week, the offense produced only
Speaker 1: one touchdown the Bills on twelve Mike White in defeat
Speaker 1: twenty seven of forty four. He took a beating sat
Speaker 1: four times twice he had to leave the game, and
Speaker 1: after the game, White went to the hospital with injured ribs,
Speaker 1: a precautionary measure. A Jet bright spot was rookie running
Speaker 1: back Zonovan Whitey games seventy one yards scored the Jets
Speaker 1: and only touchdown. As for the Giants, never in it
Speaker 1: at met Live Philadelphia score touchdowns on the first three
Speaker 1: possessions of Giants illegal punt didn't help matters. The final
Speaker 1: is forty eight to twenty two, most points. The Eagles
Speaker 1: have scored in a road game with the Giants since
Speaker 1: nineteen seventy one, and Philly's already in the playoffs in
Speaker 1: NFL Best twelve and won six and oh on the road.
Speaker 1: Bryan day Boles Giants winless in the last four games
Speaker 1: winning it's when you're losing this humbling. Um Love was
Speaker 1: like this, you own it. It'll make any excuses. They
Speaker 1: played well. Um, when we get to you know, have
Speaker 1: an opportunity to get ready and and play a big
Speaker 1: game on on Sunday night. Yeah, that's the game in Washington,
Speaker 1: moved to prime time. The two teams had the same record.
Speaker 1: The winner will own the tiebreaker. They're in a battle
Speaker 1: with Seattle, three teams buying for two playoff spots. Giants
Speaker 1: got some help yesterday when the Seahawks lost at home
Speaker 1: to Carolina. Next day hot their fourth trade win. They
Speaker 1: played great defense in all four at the Garden beat Sacramento.
Speaker 1: Who's a good team this year? One twelve ninety nine.
Speaker 1: R J Barrett, Julius Randall both with twenty seven points
Speaker 1: all twenty seven for randall come in the first half.
Speaker 1: Third quarter we got ejected, picking up two technicals. Low
Speaker 1: scoring Battle of New Jersey Seaton Hall forty five Rutgers
Speaker 1: forty three. No one scored more than ten points. Both
Speaker 1: teams were six and four. Paul Silas has passed away
Speaker 1: at seventy nine, played sixteen seasons for five NBA team.
Speaker 1: John Stash Bloomberg Sports. Thanks John, Bloomberg Sports has brought
Speaker 1: to you by Audie. Don't let someone else drive off
Speaker 1: in the Audi model. You've always wanted to visit your
Speaker 1: local Tri state Audie dealer to get behind the wheel
Speaker 1: of yours today, or visit Outie Offers dot com for
Speaker 1: more information. SMP futures now up ten points, staff futures
Speaker 1: up sixty eight. NAS deck futures are higher by thirty
Speaker 1: eight points ten. Your treasury is up fifteen thirty seconds.
Speaker 1: The yield on the benchmark three point five two percent
Speaker 1: six twelve on Wall Street. This is Bloomberg Daybreak on
Speaker 1: a week that is going to be focused on central
Speaker 1: banks here and around the world. It's bringing David Rosenberg
Speaker 1: ahead of all these decisions. The founder in chief economist
Speaker 1: and strategists at Rosenberg Research. David, it's good as always
Speaker 1: to speak with you. Give us your expectations on what
Speaker 1: we could see first off from the Federal Reserve on Wednesday. Well,
Speaker 1: I think that the Fed is a pretty easy call
Speaker 1: in terms of what they're gonna do on rates. Fifty
Speaker 1: basis points is baked in the cake. I think the
Speaker 1: only issue is going to be the tone of the
Speaker 1: press statement, the cadence at the post meeting press conference
Speaker 1: by Powell, and of course the markets will be fixated
Speaker 1: on the dot plots. But I'd say that now that
Speaker 1: the futures markets already priced for the terminal rate at
Speaker 1: five percent, which is what the Fed's are already signaled. Uh.
Speaker 1: I don't really know what the potential is going to
Speaker 1: be for any big surprise. We have heard a pretty
Speaker 1: strong drumbeat, particularly from FED Chairman Powell, the latest from
Speaker 1: the Brookings Institution speech about the need to keep rates
Speaker 1: higher for longer. Do you think the market has gotten
Speaker 1: that message? Well, I guess it's like the debate about
Speaker 1: transitory What does for longer really mean? I think people
Speaker 1: tend to think that once the Fed pauses, uh, the
Speaker 1: the pivot or the rate cut happens like the next month.
Speaker 1: It rarely, if ever, happens that smoothly. Usually the lag
Speaker 1: is about six months, And interestingly enough, the markets are
Speaker 1: priced for the fit to be done at five by May,
Speaker 1: and the futures markets pricing in two rate cuts by
Speaker 1: the end of the year, which by and large would
Speaker 1: follow the historical script. So I don't think that longer
Speaker 1: necessarily has to mean the Fed is going to be
Speaker 1: keeping rates of five percent for twelve or twenty four months.
Speaker 1: To be hired for longer will mean getting the five
Speaker 1: percent if they get there, and in keeping it there
Speaker 1: for a couple of quarters as they assess how the
Speaker 1: economy and the inflation backdrop is performing. Let's just say
Speaker 1: one thing, Okay, we heard from Janna Yellen in the
Speaker 1: past few days, not just once, but twice in the
Speaker 1: course in sixty minutes, where she's coming out and saying
Speaker 1: that she doesn't expect inflation just be lower. She's saying
Speaker 1: it's going to be much lower. And I don't think that,
Speaker 1: you know, she meets with Powell frequently. I don't think
Speaker 1: she'd be going out with comments like this without his
Speaker 1: not of approval. So I think that really points towards
Speaker 1: a less hawkish bias out of the FED online day
Speaker 1: in my opinion, interesting, do you think the FED has
Speaker 1: gone far enough with the fight against inflation? Do you
Speaker 1: think it's gone too far? Well? I think that the
Speaker 1: truth is always in the yield curve, always the much
Speaker 1: maligned yield curve. You know, it's interesting that all the
Speaker 1: economists of the analysts and strategists never have a problem
Speaker 1: with the yield curve. When the FET is easing into
Speaker 1: a steep yeel curve, of course, that just paves the
Speaker 1: way for unrelenting positive economic growth and reflation. But all
Speaker 1: of a sudden, you know, when the FETE starts to
Speaker 1: tighten in versus the yel curve, we have this big
Speaker 1: debate about the veracity of the yeld curve. It's used
Speaker 1: to only work for most ball Street strategists in one direction.
Speaker 1: But the fat is tightening, has been tightening into an
Speaker 1: inverted yeel curve at the extent that we hadn't seen
Speaker 1: since Paul Bulker uh in, and we already know what
Speaker 1: happened in two Okay, we had a steep recession, uh
Speaker 1: and we had inflation melt. So I think that's going
Speaker 1: to be the prognosis. So you're gonna ask me to
Speaker 1: the FED overdo it. Well, Look, if their goal along
Speaker 1: was to cause the conditions for a contraction and aggurate
Speaker 1: demand to cure the inflation battle, well this is exactly
Speaker 1: we're going to be getting. So I'm not going to
Speaker 1: say that the FETE has overdone it. This is probably
Speaker 1: what their goal was, tightened aggressively into an inverted yel curve.
Speaker 1: The ball market hasn't screaming uncle for months now, and
Speaker 1: we're going to get the recess and inflation in every recession,
Speaker 1: even in those god awful staturation periods of the nine seventies.
Speaker 1: In recessions, demand destruction overtakes. Whatever an elastic supply we
Speaker 1: have an inflation melts. And that's the story for now.
Speaker 1: The other story that we heard from Treasury Secretary Yelling
Speaker 1: in that interview last night was that she doesn't think
Speaker 1: necessarily that there has to be a recession for the
Speaker 1: FED to get the fight done against inflation. Of course,
Speaker 1: the yield curve is as adverted as it's been since
Speaker 1: the early eighties. So who's getting it wrong, David, Well,
Speaker 1: she didn't say, Well, she actually said that inflace that
Speaker 1: recession is still a risk. But I mean, what do
Speaker 1: you want, really, she's a politician, Uh, she works for
Speaker 1: the administration. You really expect her to come out and say, oh,
Speaker 1: we're going to have recession for sure in the coming year.
Speaker 1: To me, actually, the fact that she even said that
Speaker 1: there is a risk that we have recession, that was
Speaker 1: what was important. But you can't expect a cabinet remember
Speaker 1: to come up and say we're going to have recession
Speaker 1: for sure next year. Who does that? Um? But the
Speaker 1: reality is that if we emerge without a recession, given
Speaker 1: the message from the bond market, the extent of the
Speaker 1: inversion of the bond market, whatever part of the curve
Speaker 1: you want to look at, if we escape lit to recession,
Speaker 1: it will be the first time that's ever happened. And
Speaker 1: tell me how well the refrain of it will be
Speaker 1: different this time? How well has that worked more investors
Speaker 1: in the past. All right, we're gonna go too. Well, right, Well,
Speaker 1: we're going to continue this conversation in the next few
Speaker 1: minutes here with David Rosenberg, founder and chief economist at
Speaker 1: Rosenberg Research. Want to get your thoughts, David as well
Speaker 1: on what we could get from the final inflation print
Speaker 1: before that FED decision on Wednesday, and as well as
Speaker 1: the other central banks coming out with policy decisions of
Speaker 1: their own. So stay with us here on Bloomberg day
Speaker 1: Break because we keep the conversation going here with David Rosenberg,
Speaker 1: the founder in chief economist at Rosenberg Research. This is
Speaker 1: Bloomberg Markets headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot com, the Bloomberg Business Outland at
Speaker 1: Bloomberg Quick Take. This is a Bloomberg Business Flash, and
Speaker 1: I'm Karen Moscow. This updates brought to you by the
Speaker 1: Jewish Communal Fund. For fifty years, philanthropists at all levels
Speaker 1: have turned to JCFS donor advice funds to streamline their
Speaker 1: charitable giving. Visit j c f n Y dot org.
Speaker 1: U stock index futures on the rise this morning, and
Speaker 1: we check the markets all day long here at Bloomberg
Speaker 1: with SNP Future is up about twelve points or three
Speaker 1: tens of a percent down. Future is up sixty six
Speaker 1: or two tents of up percent, and NASTAG futures up
Speaker 1: thirty nine or a third of uppercent. The tenure Treasury
Speaker 1: up sixteen thirty seconds L three point five one percent
Speaker 1: at a yield on the two year four point three
Speaker 1: one percent. Nimex screwed oil is down seven tenths per
Speaker 1: cent or forty seven cents at seventy dollars fifty six
Speaker 1: cents of barrel Comex golled down three tenths per cent
Speaker 1: or found dollars twenty cents at eighteen oh five fifty
Speaker 1: announced for watching shares of Horizon Therapeutics this this morning
Speaker 1: at more than fourteen percent in early training. As we've
Speaker 1: been reporting, it's being purchased by am Gen and a
Speaker 1: cash deal worth almost twenty eight billion dollars. That's a
Speaker 1: Bloomberg business flash. Now here's Amy Morrish with more on
Speaker 1: what's going on around the world. Amy Karen Olivian. Man
Speaker 1: suspected in the night eight bombing of pan amp Like
Speaker 1: one oh three over Scotland is in US cost to
Speaker 1: the Department of Justice. Spokesman says the alleged operative expected
Speaker 1: to make an initial appearance in the U S. District
Speaker 1: Courts Court for the District of Columbia. A US helicopter
Speaker 1: rate has killed two Islamic state officials in Syria. U
Speaker 1: S Central Command says one of the people killed in
Speaker 1: yesterday's raid was a provincial official in Eastern Syria who
Speaker 1: was involved in plotting and carrying out the terrorist groups operations.
Speaker 1: In sports, in the NFL, the Bills beat the Jets,
Speaker 1: the Giants lost to the Eagles, Ravens and forty Niners win.
Speaker 1: In hockey, the Caps and Bruins win, And in the NBA,
Speaker 1: the Nicks beat The King's Global News twenty four hours
Speaker 1: a day on aeron on Bloomberg Quick Take, powered by
Speaker 1: more than journalists and analysts in more than one twenty countries.
Speaker 1: I'm anymore as and this is Bloomberg. Nathan all right, Amy,
Speaker 1: thank you to six three on Wall Street. I'm Nathan Hagar.
Speaker 1: This is Bloomberg day Break, brought to you by ancient
Speaker 1: accountants and advisors, the right fit tax and accounting firm
Speaker 1: that you need to succeed. Visit the man ancient dot
Speaker 1: com slash v i P to learn more. That's ancient
Speaker 1: dot com slash v i P. And we're back with
Speaker 1: David Rosenberg, now founder, chief economist and strategists at Rosenberg Research,
Speaker 1: as we look ahead to the FED decision and all
Speaker 1: the other central banks later on this week. Ahead of that,
Speaker 1: David of course, we get one last read on inflation
Speaker 1: in tomorrow's Consumer Price Index. We had producer prices come
Speaker 1: in a little bit hotter than expected last week, though
Speaker 1: still trending lower. Does that inform what we could see
Speaker 1: from the consumer data tomorrow, Well, I don't think so.
Speaker 1: I know that a lot of shall we say, pundits
Speaker 1: we're pointing to the outsized pp I number on Friday,
Speaker 1: but the entire delta between the actual and the expected
Speaker 1: on the p p I and the core came from
Speaker 1: this bizarre four seasonally adjusted surge in financial sector fees.
Speaker 1: Outside of that, the headline and core pp I word
Speaker 1: inline with consensus estimates, the consensus for this week headline
Speaker 1: and core plus point three seems uh. Seems right for me.
Speaker 1: But I would say that what's more important is the
Speaker 1: outlook for inflation and the big break we've been seeing
Speaker 1: in the past several months. Finally, is the deflation we're
Speaker 1: now seeing in rental rates in real time uh, and
Speaker 1: that will morph into a real significant slowing in. It
Speaker 1: will fill bottleneck for the CPI data, which is the
Speaker 1: o E R and the rental rents um To me,
Speaker 1: that's going to be more important for this week's number
Speaker 1: on the c P. I I think plus point three
Speaker 1: is probably about right. I don't think it's going to
Speaker 1: have a big market impact. So does that have any
Speaker 1: impact then on the rate trajectory for the Fed heading
Speaker 1: into twenty three, Well, I think that you know what's
Speaker 1: at play here isn't so much the near term. The
Speaker 1: Feds laid down its cards. They need to see multi
Speaker 1: month um slowing in inflation, core inflation. So as risk managers,
Speaker 1: they're probably going to continue to raise rates into the
Speaker 1: early part of next year. I think they'll pause. The
Speaker 1: only debate, the only debate. The debate isn't five percent
Speaker 1: terminal that's in the market. The debate is what or
Speaker 1: not the Fed is going to after pauses, which is
Speaker 1: inevitable after a tightening cycle, especially one as precious like this.
Speaker 1: Is when do they start to cut rates. And you'll
Speaker 1: start to cut rates once they start to see inflation
Speaker 1: go down significantly over a multi month period and when
Speaker 1: they start to see get employment rate begin to hook up.
Speaker 1: And I think that will be the story in the
Speaker 1: second happen next year. And I said before the markets
Speaker 1: are priced the two rate cuts by the end of
Speaker 1: next year, that's where the debate. The debate is really
Speaker 1: at this point, when does the FED start the eventual
Speaker 1: easing cycle and by how much. My sense is that
Speaker 1: just like in the aftermath of every easing cycle, tightening cycle,
Speaker 1: just like when we just saw the rate cut cycle
Speaker 1: is probably gonna come a little earlier. And as they say,
Speaker 1: you know, the harder they go to the heart of
Speaker 1: they fall. I know you can't convince anybody today that
Speaker 1: the Fed is going to be easy policy aggressively in
Speaker 1: the second happen next year, but I think that is
Speaker 1: a very good chance that it will. It's gonna be
Speaker 1: very interesting to see what, if any clarity we get
Speaker 1: from the Fed when the decision comes on Wednesday, and
Speaker 1: of course the news conference from Chairman Powell Wednesday afternoon.
Speaker 1: David Rosenberg of Rosenberg Research, thanks for your insights ahead
Speaker 1: of all that this morning. Great having you on with us.
Speaker 1: Got your morning stop stories just ahead, plus the check
Speaker 1: of markets. First. Bloomberg Meteorologist robbed Carolyn with your forecast,
Speaker 1: Clouds give way to sunshine today is slow pressure. Heads
Speaker 1: out to see the weather improves across the Tristate area.
Speaker 1: Temperatures today up close to forty degrees clear tonight thirty.
Speaker 1: It's gonna be colder in the suburbs. I press you
Speaker 1: linger across the area. Marble have more sunshine, heights near
Speaker 1: forty clear tomorrownight to thirty, sunny skies for Wednesday with
Speaker 1: temperatures close to forty. I'm Rob Caroline with your three
Speaker 1: day forecast on Bloomberg eleven three oh broadcasting live from
Speaker 1: the Bloomberg Interactive Broker's studio in New York, Bloomberg elov
Speaker 1: In Freedom to Washington, d C, Bloomberg to Boston, Bloomberg
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Speaker 1: This is Bloomberg Daybreak. It's six Wall Speak. Good morning.
Speaker 1: I'm Nathan Hagar and I'm Karen Moscow, and we're nearly
Speaker 1: three hours away from the open of US trading. It's
Speaker 1: time for the five things that you need to notice
Speaker 1: start your day. Brought to you by I B k R.
Speaker 1: Investment Advisers switched to Interactive Brokers for lowest cost global
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Speaker 1: conflicts of your interests at ibk r dot com slash
Speaker 1: r i a first. US futures are higher this morning
Speaker 1: as we enter a big week for central banks. The FED,
Speaker 1: ECB and Bank Aving letters said to make policy decisions
Speaker 1: Wednesday and Thursday, and when it comes to the FED,
Speaker 1: the Central Bank could be poised to shift gears at
Speaker 1: least a little. Bloomberg's Finnydale Judais reports the Fed has
Speaker 1: been tightening in a big way, winding up the last
Speaker 1: four meetings with jumbo seventy basis point rate hikes to
Speaker 1: fight inflation. Higher rates risk of recession, though, and economists
Speaker 1: see the Fed opting for smaller half point hikes, mindful
Speaker 1: that efforts to steer the US economy could drive it
Speaker 1: off the road. There's room for the Fed to keep tightening.
Speaker 1: Data Friday Show November's Producer price and Bick Top forecast. Moreover,
Speaker 1: Street anticipates this week's date on US consumer prices will
Speaker 1: show no significant let up any TERRYL. Judaicce Bloomberg Daybreak,
Speaker 1: All right, Vinny, thank you, And the Treasury is weighing
Speaker 1: in on the inflation fight. Secretary Janet Yellen is cautiously
Speaker 1: optimistic that the FED can win its battle against high prices.
Speaker 1: I believed by the end of next year, you will
Speaker 1: seem which lower inflation if there's not an anticipated suck.
Speaker 1: Secretary yell until sixty minutes on CBS that she's seen
Speaker 1: positive signs, including lower shipping costs and reduced lag times
Speaker 1: for deliveries. Our listeners in Washington can hear sixty minutes
Speaker 1: Sunday nights at ten on Bloomberg, Well and Deale News.
Speaker 1: This morning, Nathan, we had breaking news within this half hour,
Speaker 1: am Jen announcing his biggest acquisition ever, and we get
Speaker 1: the latest live with Bloomberg. Steve Rappaport, Good morning, Steve,
Speaker 1: Good morning. That's right, Karen and Nathan, it's official. The
Speaker 1: biotech giant is buying Horizon Therapeutics for sixteen dollars in
Speaker 1: fifteen cents per share in cash. That offering about twenty
Speaker 1: higher than the closing price of Horizon stock on f Day.
Speaker 1: The deal values Horizon at about twenty seven point eight
Speaker 1: billion dollars on a fully diluted basis. Pre Market movement
Speaker 1: is mixed following the announcement, with Horizon up about fourteen percent,
Speaker 1: while Mgen is down more than two percent. Live in
Speaker 1: New York. I'm Steve Rappaport, Bloomberg Daybreak. Alright, Steve, thank you.
Speaker 1: We also have an acquisition involving Microsoft. The companies agreed
Speaker 1: to buy a stake in the London Stock Exchange Group.
Speaker 1: The deal gives Microsoft a four percent equity holding, is
Speaker 1: part of a new long term strategic partnership between the firms.
Speaker 1: And in Geo Political News, Nathan the US will send
Speaker 1: a delegation at China on the coming days. The move
Speaker 1: follows up on President Biden's meeting with Chinese President Sheijin
Speaker 1: Paining last month at the G twenty. And that's the
Speaker 1: five things you need to know to start your day,
Speaker 1: brought to you by Interactive Brokers. Futures this morning are
Speaker 1: on the rise. SNP futures they're up about twelve points,
Speaker 1: are up three tens of uppercent. Down futures up sixty
Speaker 1: six points or two tents of upper cent and as
Speaker 1: DEEG futures up a third of upper cents. Straight ahead
Speaker 1: your latest local headlines, plus a check of sports. And
Speaker 1: this is Bloomberg. Thanks Karen sixty one on Wall Street
Speaker 1: and Amy Morris has more on what's going on in
Speaker 1: New York and around the world. Good morning, Amy, Good
Speaker 1: morning Nathan. President Biden and Treasury Secretary Janet Gallen affirmed
Speaker 1: US support for Ukraine yell and telling CBS IS sixty
Speaker 1: minutes that American support will continue quote as long as
Speaker 1: it takes. We're doing everything we can to bring this ward.
Speaker 1: With conclusion, of course, we're providing considerable help um to Ukraine,
Speaker 1: both military and economic. The US has promised thirty eight
Speaker 1: billion dollars in military aid and delivered thirteen billion dollars
Speaker 1: in direct aid to Ukraine. Already, New York officials a
Speaker 1: broken ground on a new Metro North Line, but some
Speaker 1: are making way for other projects. After announcing Penn Station
Speaker 1: Access will provide direct train service from the Bronx to
Speaker 1: Manhattan's West Side, Senator Chuck Schumer says he'll be fighting
Speaker 1: to fund other major infrastructure initiatives. New York is building
Speaker 1: the next generation of our public brands, its system that
Speaker 1: is going to help keep our city growing, which includes
Speaker 1: the second phase of the Second Avenue subway line to
Speaker 1: extend into Harlem, and the Gateway Project, which connects underground
Speaker 1: rail tunnels between New York and New Jersey. New Haven's
Speaker 1: first adult used recreational marijuana store is scheduled to open January.
Speaker 1: Affinity Health and Wellness already operates a medical marijuana shop
Speaker 1: in Amity. The first majority of customers are expected to
Speaker 1: pre order those products, then pick up those orders as
Speaker 1: they would in any pharmacy. Members of the Marine Mammal
Speaker 1: Stranding Center yesterday buried the carcass of a thirty foot
Speaker 1: humpback whale that washed ashore on a New Jersey beach
Speaker 1: over the weekend. Because of the state of decomposition, they
Speaker 1: were not able to determine the cause of death. It
Speaker 1: was believed to have been younger than ten years old.
Speaker 1: Global News twenty four hours a day on airand on
Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred
Speaker 1: journalists and analysts in more than one hundred twenty countries.
Speaker 1: I'm Amy Morris. This is Bloomberg, Nathan. Thank you, Amy.
Speaker 1: Six thirty three on Wall Street, Time for the Bloomberg
Speaker 1: Sports Update, brought to you by Trice Stayed out of
Speaker 1: here again. It's John stash Out, Okay, Nathan. Jets and
Speaker 1: Giants pretty much in the same boat. Exceeded expectations for
Speaker 1: much of the season, but both struggling the past month,
Speaker 1: stuck on seven wins, both very much in battles for
Speaker 1: wild card playoff spots. Jets in Buffalo trying to beat
Speaker 1: the Bills for the second time. They won the Stacks
Speaker 1: more first downs, more possession time, They gained eighty seven
Speaker 1: more yards for the Bills won the game, which one
Speaker 1: to twelve to costly second half bumbles for Robert Sala's team.
Speaker 1: Thought defensider a really nice job in both situations minimizing
Speaker 1: the damage. But two turnovers are always gonna When you
Speaker 1: lose turnover bell, you're you're you're not giving yourself a
Speaker 1: chance to one. The ball Jets have lost three the
Speaker 1: last four, all on the road. The next two games
Speaker 1: are against Detroit and Jacksonville. Those teams were much improved.
Speaker 1: The Lions just beat the Vikings, Detroits won five the
Speaker 1: last six, and the Jaguars just won at Tennessee by
Speaker 1: two touchdowns. The John Giances next game next Sunday night
Speaker 1: in Washington. That game will go a long way in
Speaker 1: determining whether they make the playoffs. The Giants winless in
Speaker 1: their last four, crushed at MetLife by legaland in Philadelphia
Speaker 1: forty eight to two. Eagles scored six touchdowns, three in
Speaker 1: each half. Big days we built Jalen Arts and Miles Sanders,
Speaker 1: and the Eagles already in the playoffs. They're twelve and one.
Speaker 1: The Cowboys are ten and three. Nearly lost, but would
Speaker 1: have been a massive upset, but Dallas scored late to
Speaker 1: beat Houston forty nine. Ers stay hot one by four
Speaker 1: touchdowns over now under five hundred Tampa Bay. Tom Brady
Speaker 1: beaten by Brock Purdy, who was making his first NFL
Speaker 1: started the garden next one or fourth row one twelve
Speaker 1: ninety nine over Sacramento. John Stashillard Bloomberg Sports na Okay, John,
Speaker 1: thanks for Bloomberg Sports Fronts. You buy Audie, don't let
Speaker 1: someone else drive off in the outie model you've always wanted.
Speaker 1: Visit your local Tri state autie dealer to get behind
Speaker 1: the wheel of yours today, or visit autie Offers dot
Speaker 1: com for more information. SMP features now up eleven points,
Speaker 1: staff futures are higher by fifty eight and NAZAC futures
Speaker 1: on the rise by thirty seven points six thirty five
Speaker 1: on Wall Street. Bloomberg Radio is on the air from
Speaker 1: San Francisco to New York, London to Hong Kong. Let's
Speaker 1: check in with our global news team for some of
Speaker 1: the top stories heard on our three hundred affiliate radio
Speaker 1: stations around the world. I'm Steve potoskan K and X
Speaker 1: in Los Angeles. We're talking about Rivians rapping plans to
Speaker 1: team with Mercedes to build electric vans in Europe. Um Corney,
Speaker 1: Danaho on k Fabian Omaha. There's no timeline for the
Speaker 1: restart of the Keystone pipeline in Nebraska. I'm Kimberly Adams
Speaker 1: and on w b Z in Boston. I'll be reporting
Speaker 1: on Twitter once again attempting to launch its premium service.
Speaker 1: I'm Stephen Carol and Bloomberg DAB Radio in London. We've
Speaker 1: been reporting on the UK preparing to top its co
Speaker 1: reserves as cold weather pushes power prices to a record high.
Speaker 1: I'm Ed Corey on w w J in Detroit. I'm
Speaker 1: reporting auto books who's announced layoffs. Those are some of
Speaker 1: the stories our twenty hundred Bloomberg journ list analysts working
Speaker 1: on this morning around the world. It's sixty six on
Speaker 1: Wall Street. The following commentary is from Bloomberg Opinion how
Speaker 1: Republicans lost their House edge in mid terms. I'm Justin Fox,
Speaker 1: the columnist for Bloomberg Opinion. Republican candidates got about fifty
Speaker 1: one percent of the votes cast for the House of
Speaker 1: Representatives in November and ended up with about fifty one
Speaker 1: percent of House seats. Seems fair, No, this is not
Speaker 1: how things worked from two thousand ten through two thousand sixteen,
Speaker 1: when Republicans won much larger shares of House seats than votes.
Speaker 1: The disconnect was most pronounced in two thousand twelve, when
Speaker 1: democrats one point one percentage point winning vote margin resulted
Speaker 1: in a seven point six point loss in terms of seats.
Speaker 1: Jerrymandering after the two thousand ten census played a role
Speaker 1: in this, but political scientists pointed out that Democrats were
Speaker 1: also just inefficiently distributed, dominant in big cities but present
Speaker 1: in large if ultimately losing minorities and much of the
Speaker 1: rest of the country. Since Donald Trump was elected president
Speaker 1: in two thousand and sixteen, this distribution has shifted and
Speaker 1: the Republican edge has dwindled. I'm Justin Fox. For more opinion,
Speaker 1: please go to Bloomberg dot Com, Slash Opinion or O
Speaker 1: P I. N. Go on the Bloomberg Terminal. This has
Speaker 1: been Bloomberg Opinion, and you can hear Bloomberg Opinion commentaries
Speaker 1: every weekday. At this time, terminal customers can read more
Speaker 1: at O P I n GO. SMP futures up eleven points.
Speaker 1: That's a gain of three tenths percent. Dow futures up
Speaker 1: fifty eight or two tenths percent rise in the Nasdaq
Speaker 1: futures are hired by a third percent, or thirty eight
Speaker 1: points ten. Your treasury is up sixteen thirty seconds the
Speaker 1: old three point five one percent yield on the two
Speaker 1: year four point three one percent six thirty eight on
Speaker 1: Wall Street straight Ahead on daybreak, the latest from the
Speaker 1: nation's capital continued US support for Ukraine and will the
Speaker 1: January six committee bring out criminal referrals. Bloomberg Government Congressional
Speaker 1: Reporter Jack Fitzpatrick joins US Next Markets Headlines and breaking
Speaker 1: news twenty four hours a day at Bloomberg dot Com
Speaker 1: for Bloomberg Business Out and at Bloomberg Quicktake. This is
Speaker 1: a Bloomberg Business Flash, and I'm Karen Moscow. This update
Speaker 1: brought to you by the Donors faund open your free
Speaker 1: giving account in minutes and instantly qualified for a tax deduction,
Speaker 1: then choose from one point four million charitable organizations at
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Speaker 1: get your twenty two tax deduction. Futures this morning are
Speaker 1: on the rise. We get to the first word breaking
Speaker 1: news desk for today's morning call, and here's Bill Maloney. Bill,
Speaker 1: good morning, and good morning, Karen. That's right. US futures
Speaker 1: with a bid right now at death futures up sixty
Speaker 1: two points. Sesame is game twelve and as that futures
Speaker 1: are higher by forty four. The US ten yel at
Speaker 1: three point five two percent, Gold is down three, oil
Speaker 1: is in the red, and bitcoin is trading lower by
Speaker 1: point percent. Hong Kong l two point two percent overnight,
Speaker 1: while your PM markets are posting modest losses this morning.
Speaker 1: And back in the US on the economic front, at
Speaker 1: two o'clock, the monthly budget statement in deal news, people
Speaker 1: familiar so that am Jine will buy Horizon Therapeutics for
Speaker 1: about twenty six billion and Microsoft will purchase a four
Speaker 1: percent steak in the LC group. In the news, ribbing
Speaker 1: and scrapping plans to make a lecture vans in Europe
Speaker 1: with Mercedes and wrapping things up. Best Buy was raised
Speaker 1: neutral at Goldman Sachs, Curtis Wright cut the equal weight
Speaker 1: up Morgan Stanley, and under Armour was raised to buy
Speaker 1: over at Stephle Live from the first breaking news scam,
Speaker 1: Bill Maloney care Herery Bill, thank you and to hear
Speaker 1: live breaking news of your Bloomberg time squawk on your
Speaker 1: terminalscue you a w K and that's a Bloomberg business flash.
Speaker 1: Now here's Amy Morris with Moore on what's going on
Speaker 1: around the world, Amy Karen. Florida Governor Rhnda Santis has
Speaker 1: thanked his South Florida donors. It was a closed door
Speaker 1: meeting in Miami yesterday, we're sources tell Bloomberg News. Santis
Speaker 1: noted how his victory in Florida could be a blueprint
Speaker 1: for Republicans in the future. Georgia Congresswoman Arjorie Taylor Green
Speaker 1: told the New York Young Republicans Club over the weekend
Speaker 1: that the January six attack on the U. S. Capitol
Speaker 1: quote would have been armed if she informer Trump adviser
Speaker 1: Steve Bennett had planned it. Green appears to be pushing
Speaker 1: back against claims that she was involved in that plan
Speaker 1: and sports in the NFL, the Bills beat the Jets,
Speaker 1: the Giants lost to the Eagles. The Ravens and forty
Speaker 1: Niners both win. In hockey, the Caps and Bruins win,
Speaker 1: and in the NBA, the Knicks beat The King's Global
Speaker 1: News twenty four hours a day on air, and Don
Speaker 1: Bloomberg quit take We're out powered by more than twenty
Speaker 1: seven hundred journalists and analysts in more than one d
Speaker 1: twenty countries. Karen all right, Amy, thank you at A
Speaker 1: six two on Wall Street, and we turned to news
Speaker 1: and science and technology now at the Bloomberg and j I. T.
Speaker 1: Stammer Report, it has brought to you buy New Jersey
Speaker 1: Institute of Technology and j I T offers New Jersey's
Speaker 1: first undergraduate degree in fintech tank driven finance focused What
Speaker 1: will you make at n j I T. Learn more
Speaker 1: at n j I T dot E d U slash
Speaker 1: Fintech Now. Here's is making news and science, technology, engineering,
Speaker 1: and math. And China COVID is rapidly spreading through households
Speaker 1: and offices after the country's pandemic rules were eased. That's
Speaker 1: led to turmoil and poorly prepared hospitals. Some facilities are
Speaker 1: struggling to find enough staff, and others are suspending non
Speaker 1: COVID treatments. Scientists in California have made a breakthrough a
Speaker 1: nuclear fusion technology, producing more energy than consumed in a
Speaker 1: reaction for the first time. Bloomberg News has learned. The
Speaker 1: achievement was made at the Department of Energies Lawrence Livermore
Speaker 1: National Laboratory near San Francisco. Lasers were used to bombard
Speaker 1: hydrogen isotopes held in a superheated plasma state in order
Speaker 1: to fuse them into helium, releasing a neutron and carbon
Speaker 1: free clean energy in the process. Scientists have been experimenting
Speaker 1: with the technology for decades, but getting the process to
Speaker 1: produce more energy than it consumes has been elusive. And
Speaker 1: as you've been reporting, Van Automotive is walking away from
Speaker 1: plans to jointly build electric vans in Europe with Mercedes Benz.
Speaker 1: Van will no longer pursue the memorandum of understanding signed
Speaker 1: with the German an automaker in September, which includes plans
Speaker 1: to invest in and jointly operate an existing Mercedes Van's plant.
Speaker 1: And that's to Bloomberg and j I t Stem report
Speaker 1: Nathan Okay, Karen, thank you. At a six forty four
Speaker 1: on Wall Street Time Now to check what's going on
Speaker 1: in d C. Some of the top stories in our
Speaker 1: nation's capital include Treasury Secretary Janet Yellen predicting lower inflation
Speaker 1: next year and continued US support for Ukraine. In an
Speaker 1: interview with CBS IS sixty minutes, we're providing considerable help
Speaker 1: um to Ukraine, both military and economic, and Secretary Yellen
Speaker 1: says that support for Ukraine will continue quote as long
Speaker 1: as it takes Meantime, the White House says it will
Speaker 1: keep negotiating to free retired Marine Paul Wheeland from Russia
Speaker 1: after securing the release of basketball star Britney Griner. Spokesman
Speaker 1: John Kirby was on ABC's This Week. There was a
Speaker 1: very serious, specific proposal made to the Russians to try
Speaker 1: to get both of them out together, and it just
Speaker 1: didn't land anywhere. Didn't go anywhere with the Russians. But
Speaker 1: former Secretary of State Mike Pompeo tells Fox News Sunday
Speaker 1: the prison your swamp for arms dealer Victor boot may
Speaker 1: have played into Russia's hands. There is no doubt that today,
Speaker 1: not just Vladimir puttin but all the bad guys, the Iranians. Uh,
Speaker 1: there's who hold Americans and detenency that if you take
Speaker 1: a celebrity, the chance of getting one of your bad
Speaker 1: guys back out of American control is greater. Also making
Speaker 1: news the January six committee considering criminal referrals over the
Speaker 1: attack at the Capitol Committee Democrat Adam Schiff was on CBS,
Speaker 1: is Face the Nation if we do make referrals, who
Speaker 1: want to be very careful about how we do them. Um,
Speaker 1: but I think we're all certainly an agreement that there
Speaker 1: is evidence of criminality here and we want to make
Speaker 1: sure that the Justice Department is aware of that. And
Speaker 1: JP Morgan Chase CEO Jamie Diamond is weighing in on
Speaker 1: the chance for cooperation in Washington with the return of
Speaker 1: divided governments. Diamond was also on Face the Nation on
Speaker 1: both parties the kind of the wing nuts didn't get
Speaker 1: elected and there are so the rational thing in cos
Speaker 1: I was gratified by the thought they want to make
Speaker 1: progress and I think they can make progress. Face the Nation,
Speaker 1: Fox News Sunday and this week and all be heard
Speaker 1: every Sunday on Bloomberg Radio and our listeners in Washington.
Speaker 1: Can here sixty minutes from CBS every Sunday night on Bloomberg.
Speaker 1: Let's bring in Bloomberg Government Congression reporter Jack Fitzpatrick for
Speaker 1: more on some of these stories, including some interesting comments
Speaker 1: there from a Treasury secretary yelling on sixty minutes not
Speaker 1: just on Ukraine support but her thoughts on inflation. Very
Speaker 1: interesting to get that ahead of the FED meeting this week, Jack, Yeah,
Speaker 1: it's notable, not only because she said she expects inflation
Speaker 1: to be lower by the end of three but also
Speaker 1: made a point of saying she does not think that
Speaker 1: a recession would be necessary to sort of break the
Speaker 1: cycle of inflation. So obviously she's not on the FED board.
Speaker 1: But to hear the Treasury Secretary I say something that
Speaker 1: is very clearly not in the Paul Vulker inspired line
Speaker 1: of thinking is a pretty significant thing. And a lot
Speaker 1: of the inflation outlook, I have to imagine depends on
Speaker 1: what happens in the war in Ukraine, and the Secretary
Speaker 1: was asked about that as well, saying support will continue
Speaker 1: quote as long as it takes. I wonder how much
Speaker 1: of that's going to play into this G seven virtual meeting.
Speaker 1: That's happening today as well. Yes, that that does seem
Speaker 1: to be the relevant timing, and it's also worth noting
Speaker 1: she said her expectations on inflation UH slowing down are
Speaker 1: in the context of if there are no other major
Speaker 1: supply shocks, and obviously the war in Ukraine is something
Speaker 1: that made this all a tougher situation with inflation. But yes,
Speaker 1: with the G seven meeting, there clearly is another push
Speaker 1: by the US just to reiterate that the support is there,
Speaker 1: more support is coming. I would note that, you know,
Speaker 1: the president, President Biden has asked Congress for another thirty
Speaker 1: eight billion dollars or so to be attached to a
Speaker 1: year end government funding bill that's all Ukraine aid related.
Speaker 1: He's gotten pretty good feedback from leadership in both parties UH,
Speaker 1: and obviously in the early days of trying to institute
Speaker 1: this price cap with G seven countries in the EU
Speaker 1: on Russian oil purchases, UH, they seem to have thought it.
Speaker 1: It's it's necessary to reiterate the support and emphasize the
Speaker 1: consistency of support for Ukraine. I want to turn to UH,
Speaker 1: what's happening on Capitol Hill More domestically, we're getting close
Speaker 1: to the end game for the House January six committee,
Speaker 1: and there seems to be a lot more talk about
Speaker 1: whether they're going to be criminal referrals coming out of
Speaker 1: the committee's report. How much does that matter? It definitely matters,
Speaker 1: the members have said that's an important thing. A couple
Speaker 1: of our colleagues reported that there was a discussion on
Speaker 1: Sunday among members of the panel in which there were
Speaker 1: presentations made four referrals. Uh, this could list. This could
Speaker 1: be a list of people, including the former president Donald
Speaker 1: Trump and other top associates of his who maybe refer
Speaker 1: for criminal prosecution to the Justice Department. It's not binding,
Speaker 1: It's not something where the Panel tells the Justice Department
Speaker 1: what to do and makes demands. But at the very least,
Speaker 1: regardless of what the Justice Department ends up deciding to do,
Speaker 1: it would be a very powerful message, depending on exactly
Speaker 1: what message they sent to you know, especially if they
Speaker 1: were to uh present a referral for prosecution of a
Speaker 1: former president in particular. Indeed, alright, as always, thanks for this,
Speaker 1: Jack Bloomberg. Government Congressional reporter Jack Fitzpatrick with us from
Speaker 1: the nation's capital. Read more about these stories on bloomberg
Speaker 1: dot com. Or on the Bloomberg terminal, and a reminder
Speaker 1: you can follow all the latest on Bloomberg Radio in Washington,
Speaker 1: Bloomberg and one oh five point seven FM HD two
Speaker 1: STP Futures hire by nine points right now, Down futures
Speaker 1: of forty three dancet at futures higher by thirty six points.
Speaker 1: Tenure Treasury is up sixteen thirty seconds, the yield close
Speaker 1: to three point five. This is Bloomberg Markets, headlines and
Speaker 1: breaking news twenty four hours a day, at Bloomberg dot com,
Speaker 1: the Bloomberg Business Out and at Bloomberg Quick Tape. This
Speaker 1: is a Bloomberg Business Lash and I'm Karen Moscow. This
Speaker 1: update brought to you by SEI. Asset managers don't get
Speaker 1: results that are off the charts when their solutions are
Speaker 1: off the shelf. Learn how sci is operating platform can
Speaker 1: turn infrastructure into a competitive advantage At sc sc dot com,
Speaker 1: slash tech and futures are higher this morning. We check
Speaker 1: the markets all day long here at Bloomberg, with SMP
Speaker 1: futures up about eleven points or three tents of uppercent.
Speaker 1: Down futures are up fifty one points, almost two tenths
Speaker 1: of up percent, and Nowasdack futures up thirty eight or
Speaker 1: about a third of uppercent, the decks in Germany's down
Speaker 1: two tenths of uppercent. The tend your treasury of fourteen
Speaker 1: thirty seconds yield three point five two percent, and the
Speaker 1: yield on the two year four point three two percent.
Speaker 1: Nim Ex Screude oil is down nine tents of upper
Speaker 1: cent or sixty two cents at seventy dollars four cents
Speaker 1: in barrel called my school down a quarter percent or
Speaker 1: four dollars ten cents at eighteen o six sixty. Announced
Speaker 1: the euro one point oh five six seven against the dollar,
Speaker 1: British found one point to q and again one thirty
Speaker 1: six point seven eight. And as a Bloomberg business flash,
Speaker 1: Nathan Karen, thank you to six fifty six on Wall Street.
Speaker 1: Bloomberg Surveillance is up next, but first you bring in
Speaker 1: Bloomberg Radio and TV markets correspondent Crety grouped to take
Speaker 1: a look at some of the names moving in the
Speaker 1: pre market on a merger Monday, and what a merger
Speaker 1: I'm a Monday it is in the healthcare space, particularly
Speaker 1: creating a massive merger Monday. Let's start with Horizon Therapeutics
Speaker 1: looks like am Gen is saying it's agreeing to buy
Speaker 1: the company for about twenty seven point eight billion dollars
Speaker 1: done share price a hundred and sixteen dollars and fifty
Speaker 1: cents per share in cash, Nathan, that is a forty
Speaker 1: eight percent premium to where they were trading when the
Speaker 1: deal was closed. Though, massive news for Horizon Therapeutics hz
Speaker 1: n P is your taker there, and of course for
Speaker 1: am Jen. You gotta watch those shares a mg N
Speaker 1: so Horizon rallying about fourteen percent this morning, quite hitting
Speaker 1: that one and sixteen fifty mark, so really keep an
Speaker 1: eye for the arbitrage there, but you also want to
Speaker 1: keep an eye on am Gen once again. A mg
Speaker 1: N is your taker classically, as it's kind of the
Speaker 1: acquisition or if you will, is down about three point
Speaker 1: one percent. Remember this is the biggest ever acquisition for
Speaker 1: am Gen. They have beat out Santa Fee and Johnson
Speaker 1: and Johnson, which we're both actually bidding. Remember, Horizon is
Speaker 1: a company that gets a lot of its revenue from Tempeza,
Speaker 1: which is basically treatment for painful autoimmune conditions. This isn't
Speaker 1: an era where a lot of people are looking to
Speaker 1: evolve past COVID and say, you know what, we need
Speaker 1: to really be investing in therapies at address cancer that
Speaker 1: address other rare diseases, and Amgen really getting ahead of
Speaker 1: that move and we could be getting closer to another
Speaker 1: m and a deal in the tech space as well.
Speaker 1: We are it Rude really is a merger Monday a
Speaker 1: kupa software that when you want to keep an eye
Speaker 1: on CEO up is your taker there. The shares are
Speaker 1: up about twenty two percent in the pre markets. Comes
Speaker 1: after Bloomberg News reported that tom A Bravo is an
Speaker 1: advanced talks to acquire the company after outbidding Vista Equity Partners.
Speaker 1: For those of you who don't know what Koopa software is,
Speaker 1: it basically provides business spend management software helps companies track
Speaker 1: manage the purchasing of goods and services. So some of
Speaker 1: their customers include Nestlee, a group On, among others. We're
Speaker 1: still waiting on what the actual share price might be,
Speaker 1: but one of the top shareholders in Kopa right now,
Speaker 1: HMI Capital, is very vocal and so this should be
Speaker 1: about nine five dollars a share. Will actually see if
Speaker 1: that deal gets there. For now, shares of training. Like
Speaker 1: I said about around the seventy five dollar mark, so
Speaker 1: something to keep an eye on. It sounds like it's
Speaker 1: going to keep you busy throughout this m and a Monday.
Speaker 1: We've also got some new analyst recommendations to talk about
Speaker 1: as well. We do very quickly call calm here c
Speaker 1: Q or Q C O M excuse me. Shares actually
Speaker 1: down two point four percent. Wells Fargo really the cause
Speaker 1: behind this, giving the stock it's only negative analyst rating,
Speaker 1: saying that they expect continued under performance for smartphone names.
Speaker 1: Not exactly a vote of confidence you want on a
Speaker 1: merger Monday, Yeah, certainly not. Thanks as always and welcome back,
Speaker 1: Bloomberg Radio and TV Markets correspondent. Pretty good keeping an
Speaker 1: eye on the movers in the pre market. Stocks as
Speaker 1: a whole moving higher as investors wait a slew of
Speaker 1: central bank decisions. This week. We have SMP futures up
Speaker 1: ten points, staff futures of Nasdaq futures are higher by
Speaker 1: thirty five points. You've been listening to Bloomberg Daybreak. I'm
Speaker 1: Nathan Hager alongside Karen Moscow six fifty nine on Wall Street.
Speaker 1: Bloomberg Surveillance starts right now live from the financial capital
Speaker 1: of the world, broadcasting across the globe. This is w
Speaker 1: BBR New York Bloomberg, even tho the Fed doesn't want
Speaker 1: to actually grasp the nettle and tighten finally,