WEBVTT - Bloomberg Daybreak: December 13, 2022 - Hour 2 (Radio) 0:00:03.360 --> 0:00:06.960 Live from the Bloomberg Interactive Burgers Studios. Is Bloomberg day 0:00:06.960 --> 0:00:10.360 Break for Tuesday, December thirteen, twenty twenty two. Coming up 0:00:10.400 --> 0:00:13.120 this hour, the disgraced founder of f t X, Sam 0:00:13.160 --> 0:00:17.279 Bankman Freed, is arrested. Team coverage straight ahead. Inflation isn't 0:00:17.320 --> 0:00:20.240 focused as well. Street braces for the latest CPI reading. 0:00:20.480 --> 0:00:24.000 Another big investor forecasts a recession for next year, and 0:00:24.120 --> 0:00:28.600 Elon must SpaceX hits evaluation of one hundred forty billion dollars. 0:00:28.840 --> 0:00:31.880 I'm anymore as New York's gunwall remains intact for now 0:00:32.120 --> 0:00:34.760 and the city plans to honor the central Part five. 0:00:35.080 --> 0:00:37.440 I'm John Stashnar and sports the Rangers with the Devils 0:00:37.440 --> 0:00:40.000 in overtime. I win for the Nets. The Patriots one 0:00:40.040 --> 0:00:45.440 in the World Cup semifinals begin today. That's all traded 0:00:45.440 --> 0:00:49.360 ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York, 0:00:49.560 --> 0:00:54.240 Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston, 0:00:54.520 --> 0:00:58.680 Bloomberg nine sixties and Francisco Sirius x M one nine 0:00:58.720 --> 0:01:01.640 Team and around the world Old on Bloomberg Radio dot 0:01:01.640 --> 0:01:09.080 Com and via The Bloomberg Business. Good Morning, I'm Nathan Hager, 0:01:09.720 --> 0:01:12.520 and I'm Karen Moscow and US DOT index futures are 0:01:12.520 --> 0:01:15.280 on the rise this morning six oh one on Wall Street, 0:01:15.319 --> 0:01:17.400 and we check the markets all day long here at 0:01:17.440 --> 0:01:20.399 Bloomberg s and P futures they're up four tents of 0:01:20.480 --> 0:01:23.280 upper cents, so are Dow futures, with SMP futures up 0:01:23.280 --> 0:01:26.160 about eighteen points and DOWN futures up one undred thirty nine. 0:01:26.440 --> 0:01:29.120 NASDACK futures up half percent or fifty nine points. The 0:01:29.240 --> 0:01:31.840 decks in Germany's up eight tens of upper cent ten 0:01:31.920 --> 0:01:34.000 year treasury of six third day seconds, you know, three 0:01:34.000 --> 0:01:36.080 point five eight percent they yield on the two year 0:01:36.160 --> 0:01:39.240 four point three seven percent. Nine X screwed oil up 0:01:39.280 --> 0:01:41.679 one point two percent of eighty seven cents at seventy 0:01:41.680 --> 0:01:44.280 four dollars five cents of barrel comic schooled up a 0:01:44.319 --> 0:01:46.640 third of upper cent or six dollars ten cents and 0:01:46.760 --> 0:01:50.280 one thousand, seven hundred nine dollars forty cents an ounce. Nathan, 0:01:50.360 --> 0:01:52.480 all right, Karen, We'll continue following the markets throughout the 0:01:52.520 --> 0:01:55.080 day here on Bloomberg, But first we begin with the 0:01:55.160 --> 0:01:58.760 arrest of disgraced f t X founder Sam Bankman Freed. 0:01:58.840 --> 0:02:02.040 We get the latest live with Bloomberg's Steve Rappaport. Good morning, Steve, 0:02:02.120 --> 0:02:05.040 Good morning, Nathan and Karen. Authorities in the Bahamas took 0:02:05.080 --> 0:02:08.800 Bankman Freed into custody after the US government filed criminal charges. 0:02:08.960 --> 0:02:11.800 Prosecutors planned to unseal their case against him this morning. 0:02:11.919 --> 0:02:14.400 The New York Times reports charges will include wire fraud, 0:02:14.520 --> 0:02:18.440 securities fraud, and money laundering. Ballet crypto founder and CEO 0:02:18.560 --> 0:02:21.080 Bobby Lee Chunk tells US Bankman Freed's arrest is a 0:02:21.160 --> 0:02:23.760 sigh of relief for the crypto business. There's your the 0:02:23.800 --> 0:02:28.639 perspective that he's been successfully lobbying the governments, the politicians, 0:02:28.720 --> 0:02:32.720 and he's been having good media treatment over the last 0:02:32.760 --> 0:02:35.040 few weeks. So there's been a lot of hate and 0:02:35.120 --> 0:02:38.679 anger that why aren't they arresting him sooner. Bankman Freed 0:02:38.760 --> 0:02:41.840 was scheduled to testify remotely before the House Financial Services 0:02:41.840 --> 0:02:44.880 Committee today. Instead, he's expected to appear in court as 0:02:44.919 --> 0:02:47.280 the U S seeks his extradition. Live in New York, 0:02:47.280 --> 0:02:50.320 I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you. 0:02:50.320 --> 0:02:53.040 A reaction is pouring in this morning to Sam Bankman 0:02:53.080 --> 0:02:57.600 Freeds arrest. Token Bay Capital founder Lucy Gasmarrian says it's 0:02:57.639 --> 0:03:01.079 good news for the crypto industry. Just this seems to be, 0:03:01.280 --> 0:03:03.880 you know, in process, which I think is welcome by 0:03:03.919 --> 0:03:06.440 those in the in the crypto industry. It's actually moved 0:03:06.560 --> 0:03:09.040 very swiftly. I mean that this is actually all happening 0:03:09.040 --> 0:03:12.000 in just over a month, so they've definitely moved very quickly. 0:03:12.560 --> 0:03:16.600 And Lucy Yasmararian also says this case could define regulations 0:03:16.639 --> 0:03:19.680 for crypto exchanges going forward. And we'll have much more 0:03:19.720 --> 0:03:21.800 on the arrest of Sam Bankman Freed coming up in 0:03:21.840 --> 0:03:23.840 just a few minutes here, But first we want to 0:03:23.880 --> 0:03:27.440 turn to the economy and the inflation outlook. We are 0:03:27.480 --> 0:03:29.639 just two and a half hours away from the week's 0:03:29.639 --> 0:03:33.040 first important data point cp I for November, and it 0:03:33.080 --> 0:03:36.560 comes just one day before the feds final policy decision 0:03:36.560 --> 0:03:39.720 of the year. Bloomberg's Michael McKee begins our team coverage. 0:03:40.040 --> 0:03:43.119 Inflation may have peaked, but November CPI report will show 0:03:43.120 --> 0:03:45.920 it's still running about three times it's pre pandemic Pace 0:03:46.360 --> 0:03:49.280 shelter the cost of housing will remain a big driver, 0:03:49.600 --> 0:03:52.800 although private reports show rents and home prices declining. It 0:03:52.880 --> 0:03:55.040 takes a long time for that to be reflected in 0:03:55.080 --> 0:03:58.920 the CPI data. Service industries are still raising prices driven 0:03:58.920 --> 0:04:02.000 by a shortage of works pushing up wages. Prices of 0:04:02.080 --> 0:04:05.440 used cars and medical care services are expected to decline. 0:04:05.640 --> 0:04:08.640 Apparel prices will also likely drop for a third month 0:04:08.680 --> 0:04:12.440 amid high inventory at heavy discounting heading into the holiday season. 0:04:12.720 --> 0:04:15.480 Anything short of a massive surprise will defect the FEDS 0:04:15.480 --> 0:04:19.159 Wednesday decision on interest rates, but it will offer policymakers 0:04:19.279 --> 0:04:23.160 clues to the trajectory of inflation next year. Michael McKee, 0:04:23.160 --> 0:04:26.600 Bloomberg Daybreak. Thanks to Michael, If history is any indication, 0:04:26.640 --> 0:04:30.480 today's CPI report will move markets, and we continue our 0:04:30.480 --> 0:04:34.640 team carbage at Bloomberg Markets. Reporter Valerie title tiping Organistrating 0:04:34.760 --> 0:04:37.039 US had a note saying they could see ten percent 0:04:37.160 --> 0:04:40.600 SMP rally if the CPI comes in soft, and when 0:04:40.600 --> 0:04:42.240 you look at that, you know that's not too surprising. 0:04:42.360 --> 0:04:45.400 Last month's soft printsall five point five percent jump in 0:04:45.440 --> 0:04:48.400 the SMP. The last six prints and cp I have 0:04:48.560 --> 0:04:51.520 all had a three percent swing in the SMP index. 0:04:51.720 --> 0:04:54.560 So the volatility around the data today it's huge, if 0:04:54.600 --> 0:04:57.599 not maybe larger than the actual rate decision tomorrow, and 0:04:57.600 --> 0:05:00.720 Bloomberry's Valery title says markets get you need to expect 0:05:00.720 --> 0:05:03.440 a fifty basis point hike from the Fed tomorrow. Well, 0:05:03.480 --> 0:05:07.279 many on the street expect a rally if inflation cools Karen, 0:05:07.320 --> 0:05:10.760 but not. Jeffrey Gunlake, the Double Line Capital CEO, predicts 0:05:10.760 --> 0:05:13.440 any rally likely won't last. We're probably going to see 0:05:13.440 --> 0:05:17.120 a bounce in markets between now and maybe a month 0:05:17.160 --> 0:05:19.560 from now as as money as rotated. There's been a 0:05:19.600 --> 0:05:24.279 lot of tax loss selling that's going on in recent weeks, 0:05:24.480 --> 0:05:26.720 and I think that may reverse, but I think that 0:05:26.720 --> 0:05:29.000 that's going to be short lived. And then I think 0:05:29.000 --> 0:05:32.680 we do see renewed bear market uh in at least 0:05:32.680 --> 0:05:35.200 in risk asset's not so much in bonds. Double Line 0:05:35.279 --> 0:05:38.240 CEO Jeffrey Gunlack says rate hikes from the Fed will 0:05:38.279 --> 0:05:42.080 likely make a recessionary year. Well, we're watching shares of 0:05:42.120 --> 0:05:44.599 Oracle this morning, Nathan. They're up more than two and 0:05:44.640 --> 0:05:47.560 a half percent in early trading. The software company reporting 0:05:47.640 --> 0:05:51.680 quarterly sales that top analysts estimates. The company's Cerner digital 0:05:51.720 --> 0:05:55.360 health records unit outperformed, and that helped Oracle overcome softer 0:05:55.480 --> 0:05:59.440 demand for its information technology services. And Speaking of technology, 0:05:59.520 --> 0:06:02.040 Karen ELW. Musk is making news this morning with two 0:06:02.040 --> 0:06:04.880 of his companies. The Washington Post is reporting that Twitter 0:06:04.960 --> 0:06:08.360 has dissolved its Trust and Safety Council. Paper says Musks 0:06:08.400 --> 0:06:11.080 have done years of investments interest in safety and Twitter 0:06:11.120 --> 0:06:13.560 and the two months he's owned the company, and Bloomberg 0:06:13.560 --> 0:06:17.200 News has learned Musk SpaceX is offering to sell insider 0:06:17.279 --> 0:06:19.880 shares at a price that would raise the company's valuation 0:06:19.920 --> 0:06:23.240 to about one hundred forty billion dollars. Space X, based 0:06:23.279 --> 0:06:27.360 in California, currently dominates the market for commercial space launches, 0:06:27.600 --> 0:06:29.800 and we haven't known from Asia this morning, Karen Hong 0:06:29.880 --> 0:06:33.320 Kong is scrapping some of its final remaining COVID restrictions 0:06:33.400 --> 0:06:36.400 that follows China's rapid shift away from a zero tolerance 0:06:36.400 --> 0:06:38.760 approach to the virus. Hong Kong will lift a ban 0:06:38.880 --> 0:06:42.040 on international arrivals going to bars or restaurants, and will 0:06:42.080 --> 0:06:45.040 also stop requiring people to scan QR codes on their 0:06:45.080 --> 0:06:49.560 phones to get into venues. SMP futures now up sixteen points, 0:06:49.560 --> 0:06:52.480 STYLE futures up a hundred thirty two, and NASTAC futures 0:06:52.480 --> 0:06:56.239 are higher by fifty five points straight ahead, your latest 0:06:56.279 --> 0:06:59.600 local headlines, and a check of sports. This is Bloomberg 0:07:03.320 --> 0:07:06.120 at six o seven on Wall Street. Twenty five degrees 0:07:06.360 --> 0:07:09.039 in Central Park is gonna stay sunny, but Chili today 0:07:09.120 --> 0:07:11.800 has only near forty degrees and getting back down to 0:07:11.840 --> 0:07:14.400 the upper twenties tonight. Amy Morris is here with more 0:07:14.440 --> 0:07:16.280 on what's going on in New York and around the world. 0:07:16.280 --> 0:07:19.280 Good morning, Amy, Good morning Nathan. New York's gun law 0:07:19.360 --> 0:07:22.000 remains intact for now. The New York Times Reports and 0:07:22.080 --> 0:07:25.320 Appeals Court has temporarily halted a lower court's ruling that 0:07:25.440 --> 0:07:28.440 blocked part of the law, which bands firearms and parks 0:07:28.480 --> 0:07:31.960 public transit systems and on private property without the property 0:07:31.960 --> 0:07:35.200 owner's permission. The stay is the third such order issued 0:07:35.240 --> 0:07:38.560 this month, as the panel considers constitutional challenges to the law, 0:07:38.720 --> 0:07:41.239 which New York enacted this year after the Supreme Court 0:07:41.280 --> 0:07:44.160 struck down the state's limits on carrying handguns in public. 0:07:44.560 --> 0:07:47.720 A Central Park entrance will be named next week for 0:07:47.800 --> 0:07:50.160 the Central Park Five, in honor of five black and 0:07:50.240 --> 0:07:53.160 Latino teenagers who were falsely convicted of the nineteen eight 0:07:53.320 --> 0:07:56.240 nine rape an assault of a white female jogger, Sharon's 0:07:56.200 --> 0:07:58.840 Salam is mother of Usef Salam, one of the five, 0:07:59.080 --> 0:08:02.000 and tells ABC she wants to see her son's innocence 0:08:02.240 --> 0:08:05.120 literally etched in stone. We went through a hell of 0:08:05.200 --> 0:08:10.400 fi time and it wasn't very easy, you know. People 0:08:10.440 --> 0:08:15.280 were spitting at us, calling us name, sending us threats. 0:08:15.480 --> 0:08:18.080 The gate of the exonerated will be unveiled at the 0:08:18.080 --> 0:08:21.400 park's northern edge. Another man confessed to that attack in 0:08:21.440 --> 0:08:24.280 two thousand two. While the number of felony crimes on 0:08:24.320 --> 0:08:26.880 the New York subway system is way up for the year, 0:08:27.280 --> 0:08:30.440 the head of the New York City Transit Dave Richard Davy, 0:08:30.560 --> 0:08:33.520 testified on a council hearing on public safety, saying that 0:08:33.600 --> 0:08:36.880 transit crime is actually down more than the month of 0:08:36.920 --> 0:08:40.000 November compared to November of last year. Way too early 0:08:40.040 --> 0:08:42.920 to celebrate, but I believe there is real progress that 0:08:42.960 --> 0:08:44.960 we can trace back to the actions by the mayor 0:08:44.960 --> 0:08:47.120 and the governor now Richard Davy. They're referring to a 0:08:47.160 --> 0:08:50.120 plan from late October that put a heavier police presence 0:08:50.160 --> 0:08:53.480 in place in the subway system. Davy also testified transit 0:08:53.520 --> 0:08:56.360 officials will be pushing for judges to ban people from 0:08:56.400 --> 0:08:59.960 the transit system when they commit certain crimes. New Jersey 0:09:00.040 --> 0:09:03.439 also allocating more than twenty four million dollars for improvements 0:09:03.480 --> 0:09:06.600 in and around public transit. The Safe Streets to Transit 0:09:06.640 --> 0:09:10.080 program and the Transit Village Program will help fund access 0:09:10.080 --> 0:09:13.640 to public transportation, and the Local Bike Way Program will 0:09:13.640 --> 0:09:18.160 help promote cycling as an alternative mode of transportation. Global 0:09:18.200 --> 0:09:20.360 News twenty four hours a day on air and on 0:09:20.400 --> 0:09:24.200 Bloomberg Quicktake, powered by more than twenty hundred journalists and 0:09:24.240 --> 0:09:27.640 analysts in more than one d twenty countries. I'm anymore 0:09:27.760 --> 0:09:35.160 is this is Bloomberg, Nathan? Thank you Amy six o 0:09:35.320 --> 0:09:37.480 nine on Wall Street. Time for the Bloomberg Sports Update, 0:09:37.520 --> 0:09:39.160 brought to you by twice stayed out and here against 0:09:39.200 --> 0:09:42.120 John Stay shop all right, Nathan. It was October when 0:09:42.120 --> 0:09:44.240 the Devils began their scenes with a loss in Philadelphia. 0:09:44.280 --> 0:09:46.959 They had not lost a road game since in at 0:09:46.960 --> 0:09:49.360 the Garden. They led the Rangers to nothing. Five minutes in, 0:09:49.720 --> 0:09:53.000 they are up three way three one. Midway through Rangers rally. 0:09:53.080 --> 0:09:55.800 The time the game went to overtime, down the right 0:09:55.840 --> 0:10:02.160 shot for it shook meet all wait to them overtime 0:10:02.360 --> 0:10:07.240 all the er. The shut up after a bit saved 0:10:07.360 --> 0:10:10.920 by the Orses Perkin. The Rateers win at four to 0:10:11.040 --> 0:10:14.560 three at overtime, and in the Devil's a Living Game 0:10:14.720 --> 0:10:17.719 Road which streak, the Rates wait their fourth in the 0:10:17.840 --> 0:10:20.160 role sp in New York. The Devils were coming off 0:10:20.160 --> 0:10:21.920 a home loss to the Islanders, so this is their 0:10:21.960 --> 0:10:24.480 first two game losing streak since they lost the first 0:10:24.480 --> 0:10:26.240 two games of the season. The Nets made it four 0:10:26.320 --> 0:10:28.439 strade wins, eight of the last nine, one twelve to 0:10:28.480 --> 0:10:30.920 one hundred of Washington. Kevina rant back in his hometown, 0:10:31.280 --> 0:10:34.800 scored thirty points Guary every Both had been given the 0:10:34.960 --> 0:10:37.840 previous game on Why the Night Football so Arizona lose 0:10:37.920 --> 0:10:40.680 star quarterback Kyler Murray to an apparent tourn a cl 0:10:41.040 --> 0:10:43.240 on the third play of the game. New England scored 0:10:43.240 --> 0:10:45.960 the last twenty points took the lead on a fumble return. 0:10:46.280 --> 0:10:49.560 Patriots made the Cardinals twenty seven to thirteen, So the Pats, 0:10:49.640 --> 0:10:52.400 the Jets of the Chargers are all seven and six, 0:10:52.480 --> 0:10:54.719 a three way tie for the last a f C 0:10:54.840 --> 0:10:57.760 playoff spot. Sixty one year old Mississippi State coach Mike 0:10:57.880 --> 0:11:00.800 Leach is in critical condition that the suffering a massive 0:11:00.800 --> 0:11:04.680 heart attack. Texas suspended its basketball coach Chris Beard after 0:11:04.760 --> 0:11:08.560 his arrest for felony domestic violence. Chris Bassett, who pitched 0:11:08.640 --> 0:11:10.839 this past season for the Mets, signed a three year 0:11:10.880 --> 0:11:14.680 deal with Toronto. Argentina stuffered that shocking loss to Saudi 0:11:14.720 --> 0:11:16.679 Arabia to kick off the World Cup. But there's one 0:11:16.720 --> 0:11:20.800 four straight since today in Qatar. It's Argentina versus Croatia 0:11:21.160 --> 0:11:24.560 in the World Cup semifinals. John Stashid Bloomberg Sports. David 0:11:24.720 --> 0:11:26.880 all Right, John, Thanks, and Bloomberg Sports is brought to 0:11:26.920 --> 0:11:29.000 you by Audie. Don't let someone else drive off in 0:11:29.040 --> 0:11:32.080 the Audie model you've always wanted. Visit your local Tri 0:11:32.240 --> 0:11:34.880 state Audie dealer to get behind the wheel of yours today, 0:11:35.040 --> 0:11:38.920 or visit Autie Offers dot com for more information. Breaking 0:11:39.000 --> 0:11:41.920 news just crossing the Bloomberg terminal. The Securities and Exchange 0:11:41.920 --> 0:11:45.320 Commission has unsealed its charges against f t X founder 0:11:45.480 --> 0:11:49.880 Sam bankman Fried, accusing him of defrauding investors uh TO 0:11:50.480 --> 0:11:54.079 by concealing his diversion of customer funds to crypto trading 0:11:54.080 --> 0:11:57.160 from alam To Research to the tune, allegedly of more 0:11:57.240 --> 0:12:03.080 than one point eight billion dollars. It sounds six twelve 0:12:03.320 --> 0:12:06.719 on Wall Street. This is Bloomberg Daybreak. We want to 0:12:06.760 --> 0:12:10.000 get back to our top story this morning, the arrest 0:12:10.200 --> 0:12:13.480 of f t X founder Sam Bankman Freed and the 0:12:13.640 --> 0:12:18.120 charges just unsealed by the Securities and Exchange Commission. We 0:12:18.200 --> 0:12:21.760 are joined live now by Bloomberg Cross Asset Market editor 0:12:22.040 --> 0:12:24.959 Joanna Oustinger, who has been following this story from the 0:12:25.080 --> 0:12:29.319 get go. Joanna, good morning. We're watching headlines across the 0:12:29.360 --> 0:12:33.520 Bloomberg terminal as the Securities and Exchange Commission reveals the 0:12:33.600 --> 0:12:37.000 accusations it is making against Sam Bankman Freed. What more 0:12:37.040 --> 0:12:41.679 can you tell us? Well, Nathan, this is not too 0:12:41.800 --> 0:12:45.400 much of a surprise really, because we always knew that 0:12:45.800 --> 0:12:48.240 the f t X and el Amita relationship was being 0:12:48.320 --> 0:12:51.360 looked at. There has been a lot of speculation about 0:12:51.480 --> 0:12:56.360 exactly what the flows were between those organizations and what 0:12:56.720 --> 0:13:00.679 might have um contravened securities law or anything like that. 0:13:00.880 --> 0:13:04.480 So the sec of course is unveiling those We also, 0:13:04.600 --> 0:13:09.199 of course are awaiting the criminal charges and um the 0:13:09.880 --> 0:13:12.760 and what the federal prosecutors will do as they unseal 0:13:12.880 --> 0:13:16.800 the case against him this morning also, so that's going 0:13:16.880 --> 0:13:19.240 to be a pretty big deal as well. And then 0:13:19.320 --> 0:13:21.840 of course there is the issue of he's being held 0:13:21.880 --> 0:13:26.319 in custody in the Bahamas penning that extradition process. So 0:13:26.600 --> 0:13:29.480 we'll have to see exactly what we'll go on with that. 0:13:29.800 --> 0:13:31.360 Is it going to be fast? Is it going to 0:13:31.480 --> 0:13:34.520 take weeks or months? Sometimes these things take years. This 0:13:34.679 --> 0:13:36.560 one might not go on so long. But there are 0:13:36.960 --> 0:13:40.719 so many different strands of this situation right now. And 0:13:41.000 --> 0:13:43.319 just to quote from the news released from the Securities 0:13:43.320 --> 0:13:47.720 and Exchange Commission UH quoting the chairman, Gary Gensler, saying, quote, 0:13:47.760 --> 0:13:49.920 we allege that Sam Bankman Freed built a house of 0:13:50.040 --> 0:13:53.360 cards on a foundation of deception while telling investors that 0:13:53.440 --> 0:13:56.120 it was one of the safest buildings in crypto. Of course, 0:13:56.160 --> 0:13:59.920 as you know, Joanna, Gary Gensler has been very critic 0:14:00.000 --> 0:14:02.800 goal of the crypto space and f t X in particular. 0:14:02.920 --> 0:14:06.600 What further color are you expecting when we get those 0:14:06.720 --> 0:14:12.280 criminal charges unsealed by the district Are the federal prosecutors 0:14:12.640 --> 0:14:16.160 in New York later today? Well, it'll be interesting to 0:14:16.240 --> 0:14:19.680 see exactly what they're zeroing in on. And one thing 0:14:19.760 --> 0:14:23.000 that's interesting, this case has proceeded quite quickly. It's been 0:14:23.080 --> 0:14:25.280 only about a month, and so there have been a 0:14:25.360 --> 0:14:28.480 lot of comments about they may feel like they have 0:14:28.680 --> 0:14:33.200 very strong evidence if they're moving this fast, So it'll 0:14:33.200 --> 0:14:35.880 be interesting to see exactly what they're looking at. Are 0:14:35.920 --> 0:14:38.480 they looking at the same things as the sec Are 0:14:38.560 --> 0:14:42.240 they looking at you know, international stuff, or exactly what 0:14:43.000 --> 0:14:46.840 what different laws are they focusing on? And also is 0:14:46.880 --> 0:14:49.000 it mostly about Sam bank Man Freed or are they 0:14:49.080 --> 0:14:51.720 going to loop in other people? There are all sorts 0:14:51.760 --> 0:14:54.280 of people who were involved in f t X and Alameda. 0:14:54.680 --> 0:14:56.880 Some of them have been a lot quieter than others. 0:14:57.040 --> 0:14:58.920 Sam bank Men Freed has been speaking a lot, so 0:14:59.440 --> 0:15:03.520 we've he's been in focus, but other people may be 0:15:03.640 --> 0:15:07.480 included as well. Yeah, to your point, Joanna, the speed 0:15:07.640 --> 0:15:11.960 at which the bankruptcy of f t X to now 0:15:12.080 --> 0:15:16.520 the arrest and charges being unsealed against the founder has 0:15:16.680 --> 0:15:20.000 been nothing short of dramatic. What does that tell you 0:15:20.280 --> 0:15:24.680 about potentially the kind of case, uh that prosecutors could 0:15:24.760 --> 0:15:30.840 have against Sam Bankman Freed. Well, speculation is that they 0:15:30.960 --> 0:15:34.120 may have something extremely strong if they're moving this fast, 0:15:34.160 --> 0:15:37.280 if they're that confident about it, so we will have 0:15:37.400 --> 0:15:39.680 to see what they have, But it is it does 0:15:39.760 --> 0:15:42.560 seem like if they're moving this fast, you know, they 0:15:42.640 --> 0:15:45.480 might think they have something that works really well, and 0:15:46.160 --> 0:15:49.000 we'll have to see. They also may have been worried 0:15:49.120 --> 0:15:51.239 that he would try to move to a different jurisdiction. 0:15:51.360 --> 0:15:55.160 We have seen people in the crypto space, uh, moving 0:15:55.240 --> 0:15:59.120 to different jurisdictions and even kind of going under the 0:15:59.240 --> 0:16:03.320 radar with their locations. So there's that aspect as well. 0:16:03.960 --> 0:16:07.240 But you know, it definitely seems like they wanted to 0:16:07.360 --> 0:16:09.960 move fast, even before he could testify. He was due 0:16:10.000 --> 0:16:12.320 to testify at the U. S House hearing today, the 0:16:12.400 --> 0:16:15.240 Financial Services Committee didn't get to do that. They're still 0:16:15.320 --> 0:16:18.240 having the hearing today, They're having the Senate hearing tomorrow, 0:16:18.720 --> 0:16:23.200 but you know, without the one of the star players there. Yeah, 0:16:23.240 --> 0:16:25.560 in our last minute here, the timing of this arrest, 0:16:25.680 --> 0:16:28.960 coming just a day before the kickoff of these two 0:16:29.080 --> 0:16:32.400 days of hearings is really interesting here. What does this 0:16:32.520 --> 0:16:35.240 mean for what the hearings are going to do going forward? 0:16:35.280 --> 0:16:38.280 I guess Sam Bankman Freed isn't going to be testifying now. 0:16:38.360 --> 0:16:40.240 Does this just sort of put the whole proceeding in 0:16:40.320 --> 0:16:42.800 Washington into a kind of a state of upheaval here. 0:16:44.640 --> 0:16:47.760 It definitely takes away some of the drama. At the 0:16:47.840 --> 0:16:50.960 same time, John Jay Ray, the third who's knew the 0:16:51.040 --> 0:16:54.680 new CEO, is going to be testifying and he will 0:16:54.760 --> 0:16:56.600 still be able to give a clearer sense of what 0:16:56.760 --> 0:16:59.640 he's been able to figure out in the meantime and 0:17:00.160 --> 0:17:04.200 exactly we have from f t X. And so there's 0:17:04.280 --> 0:17:06.879 still a lot of information we can clean out of it, 0:17:06.920 --> 0:17:09.040 and it'll still be interesting to see what the legislators 0:17:09.080 --> 0:17:12.560 are focusing on. But definitely, uh, Sam Bankman Free's appearance 0:17:12.560 --> 0:17:14.560 would have created a lot of drama and we won't 0:17:14.600 --> 0:17:19.119 have some of that drama. Yeah, But lots more information 0:17:19.240 --> 0:17:21.399 to come out, many more questions to be answered with 0:17:21.480 --> 0:17:25.720 these multiple investigations swirling around Sam Bankman Freed. Joanna Oustinger 0:17:25.800 --> 0:17:28.280 of Bloomberg News, thank you for keeping us up to 0:17:28.359 --> 0:17:31.159 speed on what's happening here, including the breaking news from 0:17:31.160 --> 0:17:34.520 the Securities and Exchange Commission charging f t X founder 0:17:34.600 --> 0:17:38.000 Sam Bankman Freed with quote orchestrating a scheme to defraud 0:17:38.080 --> 0:17:42.119 equity investors in f t X. We will continue following 0:17:42.160 --> 0:17:44.800 the story, of course, throughout the day throughout the next 0:17:44.840 --> 0:17:47.840 couple of days here on Bloomberg Radio, as we have 0:17:48.240 --> 0:17:50.280 two days of hearings on Capitol Hill and of course, 0:17:50.680 --> 0:17:55.280 the multiple charges now being unsealed against sam Bankman Freed. 0:17:55.359 --> 0:18:02.360 Stay with us. You're listening to Bloomberg Day Right, Markets, 0:18:02.480 --> 0:18:05.520 headlines and breaking news twenty four hours a day at 0:18:05.600 --> 0:18:09.560 Bloomberg dot com, the Bloomberg Business and at Bloomberg Quicktape. 0:18:09.720 --> 0:18:18.719 This He's a Bloomberg Business lash and I'm Karen Moscow 0:18:18.800 --> 0:18:21.800 and again of our breaking news. The SEC charging Samuel 0:18:21.920 --> 0:18:26.320 Bankman Freed with orchestrating a scheme to defraud equity investors 0:18:26.400 --> 0:18:29.479 in ft X. According to the SEC's complaints, is at 0:18:29.560 --> 0:18:33.159 least may ft X rays more than one point eight 0:18:33.280 --> 0:18:36.840 billion dollars from equity investors, including about one point one 0:18:36.920 --> 0:18:40.960 billion from approximately ninety US based investors. And this update 0:18:41.080 --> 0:18:43.080 is brought to you by b n y Millons. Purshing 0:18:43.400 --> 0:18:46.280 learned by the world's most sophisticated wealth management and institutional 0:18:46.359 --> 0:18:50.080 firms rely on Pershing to help them improve profitability, create efficiency, 0:18:50.160 --> 0:18:54.480 attract talent, and manage risk. At Pershing dot Com. Futures 0:18:54.560 --> 0:18:57.040 this morning are on the rise. S ANDP futures up 0:18:57.119 --> 0:18:59.760 eighteen points, or about half percent out. Futures up for 0:19:00.080 --> 0:19:02.600 ens per Center a hundred fifty one points, and ASDAC 0:19:02.720 --> 0:19:05.879 futures up half percenter about sixty points, the Dacks in 0:19:05.920 --> 0:19:08.359 Germany's up eight tens of a percent, and a tenure 0:19:08.400 --> 0:19:10.720 treasury up six thirty seconds. He had three point five 0:19:10.760 --> 0:19:13.200 eight percent. They yield on a two years at four 0:19:13.280 --> 0:19:16.359 point three seven percent. Just looking at bitcoin this morning 0:19:16.400 --> 0:19:19.040 of one and a half percent at about seventeen thousand, 0:19:19.119 --> 0:19:21.919 four hundred dollars. And as a Bloomberg business flash, now 0:19:22.000 --> 0:19:25.080 here's Amy Morris with Moore unless going on around the world. Amy, 0:19:25.680 --> 0:19:28.719 Thank you, Karen. President Biden expected to sign their Respect 0:19:28.760 --> 0:19:31.600 for a Marriage Act into law today. The bipartisan bill 0:19:31.640 --> 0:19:35.280 aims to protect marriage for lgbt Q and interracial couples. 0:19:35.640 --> 0:19:37.879 We await formal word of a major breakthrough and the 0:19:37.960 --> 0:19:41.000 quest to harness fusion. That experiment marks the first time 0:19:41.040 --> 0:19:43.480 scientists have been able to produce more energy from the 0:19:43.560 --> 0:19:46.560 reaction that consumes. In sports, Monday night football in the 0:19:46.600 --> 0:19:49.560 New England Patriots beat the Cardinals. In the NBA, the 0:19:49.640 --> 0:19:52.399 Nets beat the Wizards, the Celtics win, and in hockey 0:19:52.560 --> 0:19:56.639 the Rangers beat the Devil's World Cup semifinals get underway today. 0:19:56.760 --> 0:19:59.160 Global News twenty four hours a day on airand Don 0:19:59.200 --> 0:20:01.960 Bloomberg Quick to a powered by more than twenty seven 0:20:02.040 --> 0:20:05.280 hundred journalists and analysts in more than one d twenty countries. 0:20:05.680 --> 0:20:08.680 I'm Any Morris, This is Bloomberg, Nathan, Thanks Amy six 0:20:09.080 --> 0:20:11.680 three on Wall Street. I'm Nathan Hagar. This is Bloomberg 0:20:11.800 --> 0:20:14.280 Daybreak on a big day to day before the FEDS 0:20:14.480 --> 0:20:17.399 final policy decision of the year coming up tomorrow. The 0:20:17.440 --> 0:20:20.480 November Consumer Price Index is due out in just a 0:20:20.520 --> 0:20:23.040 little more than two hours time. Someone will be watching 0:20:23.119 --> 0:20:26.280 those numbers very closely for US. Bloomberg Global Economics and 0:20:26.359 --> 0:20:30.080 Policy correspondent Michael McKee Mike joins US Live this morning 0:20:30.119 --> 0:20:34.560 from our Bloomberg studios in Washington, d C. Mike, good morning. 0:20:34.600 --> 0:20:37.520 What should we be looking for in the data today? Numbers? 0:20:38.400 --> 0:20:42.240 Thank you, good talking to you. When do you see 0:20:42.240 --> 0:20:44.000 all this stuff going on about crypto and do you 0:20:44.040 --> 0:20:47.960 think this is CBI is just very numbers, but it is. 0:20:48.359 --> 0:20:54.320 We are expecting a slowing of inflation. The headline rate 0:20:54.560 --> 0:20:57.639 UH supposed to be up about three tenths for the 0:20:57.720 --> 0:21:00.520 both and it was up four tenths last month. The 0:21:00.560 --> 0:21:02.760 core is not gonna be changed three tents and three tents, 0:21:03.119 --> 0:21:05.119 but both of those because of the base effects of 0:21:05.200 --> 0:21:08.159 high inflation a year ago would bring down the h 0:21:08.800 --> 0:21:11.800 the year over year numbers, the headline number down to 0:21:11.920 --> 0:21:14.560 seven point three percent of the core six point one, 0:21:15.000 --> 0:21:16.720 and those are the kind of things that the Fed 0:21:16.840 --> 0:21:21.320 wants to see. Uh. Interestingly enough, Uh, you've got markets 0:21:21.400 --> 0:21:25.639 now pricing in a drop, a very quick drop in 0:21:25.720 --> 0:21:29.640 inflation next year, down to around three percent by May 0:21:29.840 --> 0:21:35.320 according to inflation index swaps. So people are getting more optimistic. Yeah, 0:21:35.680 --> 0:21:39.680 how much does this cp I print inform what we 0:21:39.840 --> 0:21:42.720 could see from inflation over the next year. I mean, 0:21:42.760 --> 0:21:46.040 the economists we've been speaking to this morning are pointing 0:21:46.080 --> 0:21:50.600 out the fact, you know, most light uh appropriately that 0:21:51.480 --> 0:21:56.240 CPI is a major lagging indicator. It is. But what's 0:21:56.280 --> 0:21:59.720 happened is a number of the categories that people thought 0:21:59.760 --> 0:22:02.520 would be transitory and warrant and now turning out to 0:22:02.560 --> 0:22:05.920 be transitory. Just stretch the definition of how long that is. 0:22:06.480 --> 0:22:12.159 And so we're seeing on the good side, goods disinflation. 0:22:12.320 --> 0:22:16.800 It's not rising nearly as fast as it was. The 0:22:17.160 --> 0:22:21.280