Speaker 1: Live from the Bloomberg Interactive Burgers Studios. Is Bloomberg day
Speaker 1: Break for Tuesday, December thirteen, twenty twenty two. Coming up
Speaker 1: this hour, the disgraced founder of f t X, Sam
Speaker 1: Bankman Freed, is arrested. Team coverage straight ahead. Inflation isn't
Speaker 1: focused as well. Street braces for the latest CPI reading.
Speaker 1: Another big investor forecasts a recession for next year, and
Speaker 1: Elon must SpaceX hits evaluation of one hundred forty billion dollars.
Speaker 1: I'm anymore as New York's gunwall remains intact for now
Speaker 1: and the city plans to honor the central Part five.
Speaker 1: I'm John Stashnar and sports the Rangers with the Devils
Speaker 1: in overtime. I win for the Nets. The Patriots one
Speaker 1: in the World Cup semifinals begin today. That's all traded
Speaker 1: ahead on Bloomberg Daybreak on Bloomberg eleven, Free on New York,
Speaker 1: Bloomberg nine one, Washington d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nine
Speaker 1: Team and around the world Old on Bloomberg Radio dot
Speaker 1: Com and via The Bloomberg Business. Good Morning, I'm Nathan Hager,
Speaker 1: and I'm Karen Moscow and US DOT index futures are
Speaker 1: on the rise this morning six oh one on Wall Street,
Speaker 1: and we check the markets all day long here at
Speaker 1: Bloomberg s and P futures they're up four tents of
Speaker 1: upper cents, so are Dow futures, with SMP futures up
Speaker 1: about eighteen points and DOWN futures up one undred thirty nine.
Speaker 1: NASDACK futures up half percent or fifty nine points. The
Speaker 1: decks in Germany's up eight tens of upper cent ten
Speaker 1: year treasury of six third day seconds, you know, three
Speaker 1: point five eight percent they yield on the two year
Speaker 1: four point three seven percent. Nine X screwed oil up
Speaker 1: one point two percent of eighty seven cents at seventy
Speaker 1: four dollars five cents of barrel comic schooled up a
Speaker 1: third of upper cent or six dollars ten cents and
Speaker 1: one thousand, seven hundred nine dollars forty cents an ounce. Nathan,
Speaker 1: all right, Karen, We'll continue following the markets throughout the
Speaker 1: day here on Bloomberg, But first we begin with the
Speaker 1: arrest of disgraced f t X founder Sam Bankman Freed.
Speaker 1: We get the latest live with Bloomberg's Steve Rappaport. Good morning, Steve,
Speaker 1: Good morning, Nathan and Karen. Authorities in the Bahamas took
Speaker 1: Bankman Freed into custody after the US government filed criminal charges.
Speaker 1: Prosecutors planned to unseal their case against him this morning.
Speaker 1: The New York Times reports charges will include wire fraud,
Speaker 1: securities fraud, and money laundering. Ballet crypto founder and CEO
Speaker 1: Bobby Lee Chunk tells US Bankman Freed's arrest is a
Speaker 1: sigh of relief for the crypto business. There's your the
Speaker 1: perspective that he's been successfully lobbying the governments, the politicians,
Speaker 1: and he's been having good media treatment over the last
Speaker 1: few weeks. So there's been a lot of hate and
Speaker 1: anger that why aren't they arresting him sooner. Bankman Freed
Speaker 1: was scheduled to testify remotely before the House Financial Services
Speaker 1: Committee today. Instead, he's expected to appear in court as
Speaker 1: the U S seeks his extradition. Live in New York,
Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you.
Speaker 1: A reaction is pouring in this morning to Sam Bankman
Speaker 1: Freeds arrest. Token Bay Capital founder Lucy Gasmarrian says it's
Speaker 1: good news for the crypto industry. Just this seems to be,
Speaker 1: you know, in process, which I think is welcome by
Speaker 1: those in the in the crypto industry. It's actually moved
Speaker 1: very swiftly. I mean that this is actually all happening
Speaker 1: in just over a month, so they've definitely moved very quickly.
Speaker 1: And Lucy Yasmararian also says this case could define regulations
Speaker 1: for crypto exchanges going forward. And we'll have much more
Speaker 1: on the arrest of Sam Bankman Freed coming up in
Speaker 1: just a few minutes here, But first we want to
Speaker 1: turn to the economy and the inflation outlook. We are
Speaker 1: just two and a half hours away from the week's
Speaker 1: first important data point cp I for November, and it
Speaker 1: comes just one day before the feds final policy decision
Speaker 1: of the year. Bloomberg's Michael McKee begins our team coverage.
Speaker 1: Inflation may have peaked, but November CPI report will show
Speaker 1: it's still running about three times it's pre pandemic Pace
Speaker 1: shelter the cost of housing will remain a big driver,
Speaker 1: although private reports show rents and home prices declining. It
Speaker 1: takes a long time for that to be reflected in
Speaker 1: the CPI data. Service industries are still raising prices driven
Speaker 1: by a shortage of works pushing up wages. Prices of
Speaker 1: used cars and medical care services are expected to decline.
Speaker 1: Apparel prices will also likely drop for a third month
Speaker 1: amid high inventory at heavy discounting heading into the holiday season.
Speaker 1: Anything short of a massive surprise will defect the FEDS
Speaker 1: Wednesday decision on interest rates, but it will offer policymakers
Speaker 1: clues to the trajectory of inflation next year. Michael McKee,
Speaker 1: Bloomberg Daybreak. Thanks to Michael, If history is any indication,
Speaker 1: today's CPI report will move markets, and we continue our
Speaker 1: team carbage at Bloomberg Markets. Reporter Valerie title tiping Organistrating
Speaker 1: US had a note saying they could see ten percent
Speaker 1: SMP rally if the CPI comes in soft, and when
Speaker 1: you look at that, you know that's not too surprising.
Speaker 1: Last month's soft printsall five point five percent jump in
Speaker 1: the SMP. The last six prints and cp I have
Speaker 1: all had a three percent swing in the SMP index.
Speaker 1: So the volatility around the data today it's huge, if
Speaker 1: not maybe larger than the actual rate decision tomorrow, and
Speaker 1: Bloomberry's Valery title says markets get you need to expect
Speaker 1: a fifty basis point hike from the Fed tomorrow. Well,
Speaker 1: many on the street expect a rally if inflation cools Karen,
Speaker 1: but not. Jeffrey Gunlake, the Double Line Capital CEO, predicts
Speaker 1: any rally likely won't last. We're probably going to see
Speaker 1: a bounce in markets between now and maybe a month
Speaker 1: from now as as money as rotated. There's been a
Speaker 1: lot of tax loss selling that's going on in recent weeks,
Speaker 1: and I think that may reverse, but I think that
Speaker 1: that's going to be short lived. And then I think
Speaker 1: we do see renewed bear market uh in at least
Speaker 1: in risk asset's not so much in bonds. Double Line
Speaker 1: CEO Jeffrey Gunlack says rate hikes from the Fed will
Speaker 1: likely make a recessionary year. Well, we're watching shares of
Speaker 1: Oracle this morning, Nathan. They're up more than two and
Speaker 1: a half percent in early trading. The software company reporting
Speaker 1: quarterly sales that top analysts estimates. The company's Cerner digital
Speaker 1: health records unit outperformed, and that helped Oracle overcome softer
Speaker 1: demand for its information technology services. And Speaking of technology,
Speaker 1: Karen ELW. Musk is making news this morning with two
Speaker 1: of his companies. The Washington Post is reporting that Twitter
Speaker 1: has dissolved its Trust and Safety Council. Paper says Musks
Speaker 1: have done years of investments interest in safety and Twitter
Speaker 1: and the two months he's owned the company, and Bloomberg
Speaker 1: News has learned Musk SpaceX is offering to sell insider
Speaker 1: shares at a price that would raise the company's valuation
Speaker 1: to about one hundred forty billion dollars. Space X, based
Speaker 1: in California, currently dominates the market for commercial space launches,
Speaker 1: and we haven't known from Asia this morning, Karen Hong
Speaker 1: Kong is scrapping some of its final remaining COVID restrictions
Speaker 1: that follows China's rapid shift away from a zero tolerance
Speaker 1: approach to the virus. Hong Kong will lift a ban
Speaker 1: on international arrivals going to bars or restaurants, and will
Speaker 1: also stop requiring people to scan QR codes on their
Speaker 1: phones to get into venues. SMP futures now up sixteen points,
Speaker 1: STYLE futures up a hundred thirty two, and NASTAC futures
Speaker 1: are higher by fifty five points straight ahead, your latest
Speaker 1: local headlines, and a check of sports. This is Bloomberg
Speaker 1: at six o seven on Wall Street. Twenty five degrees
Speaker 1: in Central Park is gonna stay sunny, but Chili today
Speaker 1: has only near forty degrees and getting back down to
Speaker 1: the upper twenties tonight. Amy Morris is here with more
Speaker 1: on what's going on in New York and around the world.
Speaker 1: Good morning, Amy, Good morning Nathan. New York's gun law
Speaker 1: remains intact for now. The New York Times Reports and
Speaker 1: Appeals Court has temporarily halted a lower court's ruling that
Speaker 1: blocked part of the law, which bands firearms and parks
Speaker 1: public transit systems and on private property without the property
Speaker 1: owner's permission. The stay is the third such order issued
Speaker 1: this month, as the panel considers constitutional challenges to the law,
Speaker 1: which New York enacted this year after the Supreme Court
Speaker 1: struck down the state's limits on carrying handguns in public.
Speaker 1: A Central Park entrance will be named next week for
Speaker 1: the Central Park Five, in honor of five black and
Speaker 1: Latino teenagers who were falsely convicted of the nineteen eight
Speaker 1: nine rape an assault of a white female jogger, Sharon's
Speaker 1: Salam is mother of Usef Salam, one of the five,
Speaker 1: and tells ABC she wants to see her son's innocence
Speaker 1: literally etched in stone. We went through a hell of
Speaker 1: fi time and it wasn't very easy, you know. People
Speaker 1: were spitting at us, calling us name, sending us threats.
Speaker 1: The gate of the exonerated will be unveiled at the
Speaker 1: park's northern edge. Another man confessed to that attack in
Speaker 1: two thousand two. While the number of felony crimes on
Speaker 1: the New York subway system is way up for the year,
Speaker 1: the head of the New York City Transit Dave Richard Davy,
Speaker 1: testified on a council hearing on public safety, saying that
Speaker 1: transit crime is actually down more than the month of
Speaker 1: November compared to November of last year. Way too early
Speaker 1: to celebrate, but I believe there is real progress that
Speaker 1: we can trace back to the actions by the mayor
Speaker 1: and the governor now Richard Davy. They're referring to a
Speaker 1: plan from late October that put a heavier police presence
Speaker 1: in place in the subway system. Davy also testified transit
Speaker 1: officials will be pushing for judges to ban people from
Speaker 1: the transit system when they commit certain crimes. New Jersey
Speaker 1: also allocating more than twenty four million dollars for improvements
Speaker 1: in and around public transit. The Safe Streets to Transit
Speaker 1: program and the Transit Village Program will help fund access
Speaker 1: to public transportation, and the Local Bike Way Program will
Speaker 1: help promote cycling as an alternative mode of transportation. Global
Speaker 1: News twenty four hours a day on air and on
Speaker 1: Bloomberg Quicktake, powered by more than twenty hundred journalists and
Speaker 1: analysts in more than one d twenty countries. I'm anymore
Speaker 1: is this is Bloomberg, Nathan? Thank you Amy six o
Speaker 1: nine on Wall Street. Time for the Bloomberg Sports Update,
Speaker 1: brought to you by twice stayed out and here against
Speaker 1: John Stay shop all right, Nathan. It was October when
Speaker 1: the Devils began their scenes with a loss in Philadelphia.
Speaker 1: They had not lost a road game since in at
Speaker 1: the Garden. They led the Rangers to nothing. Five minutes in,
Speaker 1: they are up three way three one. Midway through Rangers rally.
Speaker 1: The time the game went to overtime, down the right
Speaker 1: shot for it shook meet all wait to them overtime
Speaker 1: all the er. The shut up after a bit saved
Speaker 1: by the Orses Perkin. The Rateers win at four to
Speaker 1: three at overtime, and in the Devil's a Living Game
Speaker 1: Road which streak, the Rates wait their fourth in the
Speaker 1: role sp in New York. The Devils were coming off
Speaker 1: a home loss to the Islanders, so this is their
Speaker 1: first two game losing streak since they lost the first
Speaker 1: two games of the season. The Nets made it four
Speaker 1: strade wins, eight of the last nine, one twelve to
Speaker 1: one hundred of Washington. Kevina rant back in his hometown,
Speaker 1: scored thirty points Guary every Both had been given the
Speaker 1: previous game on Why the Night Football so Arizona lose
Speaker 1: star quarterback Kyler Murray to an apparent tourn a cl
Speaker 1: on the third play of the game. New England scored
Speaker 1: the last twenty points took the lead on a fumble return.
Speaker 1: Patriots made the Cardinals twenty seven to thirteen, So the Pats,
Speaker 1: the Jets of the Chargers are all seven and six,
Speaker 1: a three way tie for the last a f C
Speaker 1: playoff spot. Sixty one year old Mississippi State coach Mike
Speaker 1: Leach is in critical condition that the suffering a massive
Speaker 1: heart attack. Texas suspended its basketball coach Chris Beard after
Speaker 1: his arrest for felony domestic violence. Chris Bassett, who pitched
Speaker 1: this past season for the Mets, signed a three year
Speaker 1: deal with Toronto. Argentina stuffered that shocking loss to Saudi
Speaker 1: Arabia to kick off the World Cup. But there's one
Speaker 1: four straight since today in Qatar. It's Argentina versus Croatia
Speaker 1: in the World Cup semifinals. John Stashid Bloomberg Sports. David
Speaker 1: all Right, John, Thanks, and Bloomberg Sports is brought to
Speaker 1: you by Audie. Don't let someone else drive off in
Speaker 1: the Audie model you've always wanted. Visit your local Tri
Speaker 1: state Audie dealer to get behind the wheel of yours today,
Speaker 1: or visit Autie Offers dot com for more information. Breaking
Speaker 1: news just crossing the Bloomberg terminal. The Securities and Exchange
Speaker 1: Commission has unsealed its charges against f t X founder
Speaker 1: Sam bankman Fried, accusing him of defrauding investors uh TO
Speaker 1: by concealing his diversion of customer funds to crypto trading
Speaker 1: from alam To Research to the tune, allegedly of more
Speaker 1: than one point eight billion dollars. It sounds six twelve
Speaker 1: on Wall Street. This is Bloomberg Daybreak. We want to
Speaker 1: get back to our top story this morning, the arrest
Speaker 1: of f t X founder Sam Bankman Freed and the
Speaker 1: charges just unsealed by the Securities and Exchange Commission. We
Speaker 1: are joined live now by Bloomberg Cross Asset Market editor
Speaker 1: Joanna Oustinger, who has been following this story from the
Speaker 1: get go. Joanna, good morning. We're watching headlines across the
Speaker 1: Bloomberg terminal as the Securities and Exchange Commission reveals the
Speaker 1: accusations it is making against Sam Bankman Freed. What more
Speaker 1: can you tell us? Well, Nathan, this is not too
Speaker 1: much of a surprise really, because we always knew that
Speaker 1: the f t X and el Amita relationship was being
Speaker 1: looked at. There has been a lot of speculation about
Speaker 1: exactly what the flows were between those organizations and what
Speaker 1: might have um contravened securities law or anything like that.
Speaker 1: So the sec of course is unveiling those We also,
Speaker 1: of course are awaiting the criminal charges and um the
Speaker 1: and what the federal prosecutors will do as they unseal
Speaker 1: the case against him this morning also, so that's going
Speaker 1: to be a pretty big deal as well. And then
Speaker 1: of course there is the issue of he's being held
Speaker 1: in custody in the Bahamas penning that extradition process. So
Speaker 1: we'll have to see exactly what we'll go on with that.
Speaker 1: Is it going to be fast? Is it going to
Speaker 1: take weeks or months? Sometimes these things take years. This
Speaker 1: one might not go on so long. But there are
Speaker 1: so many different strands of this situation right now. And
Speaker 1: just to quote from the news released from the Securities
Speaker 1: and Exchange Commission UH quoting the chairman, Gary Gensler, saying, quote,
Speaker 1: we allege that Sam Bankman Freed built a house of
Speaker 1: cards on a foundation of deception while telling investors that
Speaker 1: it was one of the safest buildings in crypto. Of course,
Speaker 1: as you know, Joanna, Gary Gensler has been very critic
Speaker 1: goal of the crypto space and f t X in particular.
Speaker 1: What further color are you expecting when we get those
Speaker 1: criminal charges unsealed by the district Are the federal prosecutors
Speaker 1: in New York later today? Well, it'll be interesting to
Speaker 1: see exactly what they're zeroing in on. And one thing
Speaker 1: that's interesting, this case has proceeded quite quickly. It's been
Speaker 1: only about a month, and so there have been a
Speaker 1: lot of comments about they may feel like they have
Speaker 1: very strong evidence if they're moving this fast, So it'll
Speaker 1: be interesting to see exactly what they're looking at. Are
Speaker 1: they looking at the same things as the sec Are
Speaker 1: they looking at you know, international stuff, or exactly what
Speaker 1: what different laws are they focusing on? And also is
Speaker 1: it mostly about Sam bank Man Freed or are they
Speaker 1: going to loop in other people? There are all sorts
Speaker 1: of people who were involved in f t X and Alameda.
Speaker 1: Some of them have been a lot quieter than others.
Speaker 1: Sam bank Men Freed has been speaking a lot, so
Speaker 1: we've he's been in focus, but other people may be
Speaker 1: included as well. Yeah, to your point, Joanna, the speed
Speaker 1: at which the bankruptcy of f t X to now
Speaker 1: the arrest and charges being unsealed against the founder has
Speaker 1: been nothing short of dramatic. What does that tell you
Speaker 1: about potentially the kind of case, uh that prosecutors could
Speaker 1: have against Sam Bankman Freed. Well, speculation is that they
Speaker 1: may have something extremely strong if they're moving this fast,
Speaker 1: if they're that confident about it, so we will have
Speaker 1: to see what they have, But it is it does
Speaker 1: seem like if they're moving this fast, you know, they
Speaker 1: might think they have something that works really well, and
Speaker 1: we'll have to see. They also may have been worried
Speaker 1: that he would try to move to a different jurisdiction.
Speaker 1: We have seen people in the crypto space, uh, moving
Speaker 1: to different jurisdictions and even kind of going under the
Speaker 1: radar with their locations. So there's that aspect as well.
Speaker 1: But you know, it definitely seems like they wanted to
Speaker 1: move fast, even before he could testify. He was due
Speaker 1: to testify at the U. S House hearing today, the
Speaker 1: Financial Services Committee didn't get to do that. They're still
Speaker 1: having the hearing today, They're having the Senate hearing tomorrow,
Speaker 1: but you know, without the one of the star players there. Yeah,
Speaker 1: in our last minute here, the timing of this arrest,
Speaker 1: coming just a day before the kickoff of these two
Speaker 1: days of hearings is really interesting here. What does this
Speaker 1: mean for what the hearings are going to do going forward?
Speaker 1: I guess Sam Bankman Freed isn't going to be testifying now.
Speaker 1: Does this just sort of put the whole proceeding in
Speaker 1: Washington into a kind of a state of upheaval here.
Speaker 1: It definitely takes away some of the drama. At the
Speaker 1: same time, John Jay Ray, the third who's knew the
Speaker 1: new CEO, is going to be testifying and he will
Speaker 1: still be able to give a clearer sense of what
Speaker 1: he's been able to figure out in the meantime and
Speaker 1: exactly we have from f t X. And so there's
Speaker 1: still a lot of information we can clean out of it,
Speaker 1: and it'll still be interesting to see what the legislators
Speaker 1: are focusing on. But definitely, uh, Sam Bankman Free's appearance
Speaker 1: would have created a lot of drama and we won't
Speaker 1: have some of that drama. Yeah, But lots more information
Speaker 1: to come out, many more questions to be answered with
Speaker 1: these multiple investigations swirling around Sam Bankman Freed. Joanna Oustinger
Speaker 1: of Bloomberg News, thank you for keeping us up to
Speaker 1: speed on what's happening here, including the breaking news from
Speaker 1: the Securities and Exchange Commission charging f t X founder
Speaker 1: Sam Bankman Freed with quote orchestrating a scheme to defraud
Speaker 1: equity investors in f t X. We will continue following
Speaker 1: the story, of course, throughout the day throughout the next
Speaker 1: couple of days here on Bloomberg Radio, as we have
Speaker 1: two days of hearings on Capitol Hill and of course,
Speaker 1: the multiple charges now being unsealed against sam Bankman Freed.
Speaker 1: Stay with us. You're listening to Bloomberg Day Right, Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com, the Bloomberg Business and at Bloomberg Quicktape.
Speaker 1: This He's a Bloomberg Business lash and I'm Karen Moscow
Speaker 1: and again of our breaking news. The SEC charging Samuel
Speaker 1: Bankman Freed with orchestrating a scheme to defraud equity investors
Speaker 1: in ft X. According to the SEC's complaints, is at
Speaker 1: least may ft X rays more than one point eight
Speaker 1: billion dollars from equity investors, including about one point one
Speaker 1: billion from approximately ninety US based investors. And this update
Speaker 1: is brought to you by b n y Millons. Purshing
Speaker 1: learned by the world's most sophisticated wealth management and institutional
Speaker 1: firms rely on Pershing to help them improve profitability, create efficiency,
Speaker 1: attract talent, and manage risk. At Pershing dot Com. Futures
Speaker 1: this morning are on the rise. S ANDP futures up
Speaker 1: eighteen points, or about half percent out. Futures up for
Speaker 1: ens per Center a hundred fifty one points, and ASDAC
Speaker 1: futures up half percenter about sixty points, the Dacks in
Speaker 1: Germany's up eight tens of a percent, and a tenure
Speaker 1: treasury up six thirty seconds. He had three point five
Speaker 1: eight percent. They yield on a two years at four
Speaker 1: point three seven percent. Just looking at bitcoin this morning
Speaker 1: of one and a half percent at about seventeen thousand,
Speaker 1: four hundred dollars. And as a Bloomberg business flash, now
Speaker 1: here's Amy Morris with Moore unless going on around the world. Amy,
Speaker 1: Thank you, Karen. President Biden expected to sign their Respect
Speaker 1: for a Marriage Act into law today. The bipartisan bill
Speaker 1: aims to protect marriage for lgbt Q and interracial couples.
Speaker 1: We await formal word of a major breakthrough and the
Speaker 1: quest to harness fusion. That experiment marks the first time
Speaker 1: scientists have been able to produce more energy from the
Speaker 1: reaction that consumes. In sports, Monday night football in the
Speaker 1: New England Patriots beat the Cardinals. In the NBA, the
Speaker 1: Nets beat the Wizards, the Celtics win, and in hockey
Speaker 1: the Rangers beat the Devil's World Cup semifinals get underway today.
Speaker 1: Global News twenty four hours a day on airand Don
Speaker 1: Bloomberg Quick to a powered by more than twenty seven
Speaker 1: hundred journalists and analysts in more than one d twenty countries.
Speaker 1: I'm Any Morris, This is Bloomberg, Nathan, Thanks Amy six
Speaker 1: three on Wall Street. I'm Nathan Hagar. This is Bloomberg
Speaker 1: Daybreak on a big day to day before the FEDS
Speaker 1: final policy decision of the year coming up tomorrow. The
Speaker 1: November Consumer Price Index is due out in just a
Speaker 1: little more than two hours time. Someone will be watching
Speaker 1: those numbers very closely for US. Bloomberg Global Economics and
Speaker 1: Policy correspondent Michael McKee Mike joins US Live this morning
Speaker 1: from our Bloomberg studios in Washington, d C. Mike, good morning.
Speaker 1: What should we be looking for in the data today? Numbers?
Speaker 1: Thank you, good talking to you. When do you see
Speaker 1: all this stuff going on about crypto and do you
Speaker 1: think this is CBI is just very numbers, but it is.
Speaker 1: We are expecting a slowing of inflation. The headline rate
Speaker 1: UH supposed to be up about three tenths for the
Speaker 1: both and it was up four tenths last month. The
Speaker 1: core is not gonna be changed three tents and three tents,
Speaker 1: but both of those because of the base effects of
Speaker 1: high inflation a year ago would bring down the h
Speaker 1: the year over year numbers, the headline number down to
Speaker 1: seven point three percent of the core six point one,
Speaker 1: and those are the kind of things that the Fed
Speaker 1: wants to see. Uh. Interestingly enough, Uh, you've got markets
Speaker 1: now pricing in a drop, a very quick drop in
Speaker 1: inflation next year, down to around three percent by May
Speaker 1: according to inflation index swaps. So people are getting more optimistic. Yeah,
Speaker 1: how much does this cp I print inform what we
Speaker 1: could see from inflation over the next year. I mean,
Speaker 1: the economists we've been speaking to this morning are pointing
Speaker 1: out the fact, you know, most light uh appropriately that
Speaker 1: CPI is a major lagging indicator. It is. But what's
Speaker 1: happened is a number of the categories that people thought
Speaker 1: would be transitory and warrant and now turning out to
Speaker 1: be transitory. Just stretch the definition of how long that is.
Speaker 1: And so we're seeing on the good side, goods disinflation.
Speaker 1: It's not rising nearly as fast as it was. The
Speaker 1: question then becomes what happens with services, and services are
Speaker 1: still up because of retailers having to pay uh, employees
Speaker 1: more to get workers because there aren't enough workers. Yeah,
Speaker 1: and that puts attention on what the Fed does going
Speaker 1: forward into the next year as well, whether they need
Speaker 1: to keep rates higher for longer just to try to
Speaker 1: get this tight labor market back under control. Well, it
Speaker 1: is a coincidence of timing that we have the FED
Speaker 1: meeting tomorrow and at that meeting they're going to offer
Speaker 1: new economic forecasts, including for inflation. Now, this is the
Speaker 1: CPI we're getting today. The Fed uses and forecasts the
Speaker 1: PC index. Uh. CPI generally runs a point or two
Speaker 1: above PC. So uh, while we the numbers won't match up,
Speaker 1: we'll see if the trend is the same in the
Speaker 1: FED forecast, if they see a fairly quick drop in
Speaker 1: inflation for two thousand twenty three, and then that will
Speaker 1: inform what they're thinking about in terms of how high
Speaker 1: they have to raise interest rates and how how long
Speaker 1: they have to keep them there. It's only going to
Speaker 1: be a question of, uh, do they go too far,
Speaker 1: And they don't want to do that, so they'll probably
Speaker 1: tell us more. We'll see more slow down in the
Speaker 1: pace of BRAID increases as inflation drops, and we get
Speaker 1: those numbers. As we say, just a little more than
Speaker 1: two hours time. November Consumer Price Index eight thirty am
Speaker 1: Wall Street Time. You know you'll be back Mike to
Speaker 1: break down the numbers live for us as they cross
Speaker 1: the terminal. Bloomberg Global Economics and Policy correspondent Michael McKee
Speaker 1: with us this morning from the nation's capital. Got your
Speaker 1: top stories straight ahead, But first, Bloomberg Meteorologist Rob Carolin
Speaker 1: with the weather fork with high pressure headed towards the
Speaker 1: Tristate area. Will enjoy plenty of sunshine today, just won't
Speaker 1: be very warm out high is only reaching forty later
Speaker 1: this afternoon. Skies are generally clear. Tonight will drop to
Speaker 1: thirty in the city. Suburbs are likely closer to twenty
Speaker 1: overnight sunshine back to your forty tomorrow. Increasingly cloudy tomorrow night.
Speaker 1: Rain develops on Thursday. It may start as some wet snow.
Speaker 1: I'm Rob Carolyn with your three day forecast on Bloomberg
Speaker 1: eleven three oh broadcasting live from the Bloomberg Interactive Broker's
Speaker 1: studio in New York. Bloomberg Eving freed to Washington, d C.
Speaker 1: Bloomberg to Boston, Bloomberg one O six one to San Francisco. Bloomberg,
Speaker 1: NIXT to the country, Sirius XM to one nine, and
Speaker 1: around the globe, the Bloomberg Business and Bloomberg Radio dot com.
Speaker 1: This is Bloomberg Daybreak on Wall Street. Good morning. I'm
Speaker 1: Nathan Hagar and I'm Karen Moscow, and we are just
Speaker 1: about three hours away from the open of US trading.
Speaker 1: It's time for the five things that you need to
Speaker 1: notice start your day. Brought to you by Interactive Broker's.
Speaker 1: Interacted Broker's clients are an interest of up to three
Speaker 1: point three three percent on the idle cash and their
Speaker 1: brokerage accounts. Visit id k R dot com slash interest
Speaker 1: rates to learn more. Up first, the arrest of Sam
Speaker 1: Bankman Freed, the US government criminally indicting the disgraced FTX
Speaker 1: co founder Bloomberg. Steve Rappaport joins US Live with the
Speaker 1: very latest. Steve, Good morning, Good morning, Karen and Nathan.
Speaker 1: While we wait for federal prosecutors to unbail criminal charges
Speaker 1: against Bankman Freed, the SEC is charging him with the
Speaker 1: frauding investors. Bankman Freed was supposed to testify before a
Speaker 1: House committee about the stunning collapse of his crypto firm. Instead,
Speaker 1: he will stand before a judge today as US prosecutors
Speaker 1: begin efforts to have him extradited. Ballet Crypto founder and
Speaker 1: CEO Bobby Lee Chunk tells us the arrest shows a
Speaker 1: need for greater oversight of the industry. We need to
Speaker 1: flesh off the bad actors, really need regulation and to
Speaker 1: show that rule of law is important and that people
Speaker 1: can't just do Willie Nilly. Bankman Freed admits he made
Speaker 1: mistakes but denies committing fraud. Live in New York, I'm
Speaker 1: Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks. Some reaction
Speaker 1: is pouring in this morning to Sam Bankman Freed's arrest.
Speaker 1: Bloomberg's Joanna Ostinger says senior leaders in crypto or wondering
Speaker 1: what's next for the industry. There's still a lot of
Speaker 1: nervousness and the attitude of if this can happen to
Speaker 1: something like FTX that seems so solid. People are starting
Speaker 1: to poke around and say, well, where else could there
Speaker 1: be issues? Bloomberg's Joan Oustinger says crypto prices are still
Speaker 1: stabilizing and taking a look at Bitcoin right now, it's
Speaker 1: trading up nearly one and a half percent, right around
Speaker 1: seventeen thousand, four hundred. Well, let's turn to the economy now, Nathan.
Speaker 1: Traders have their eyes on the November consumer price indexes
Speaker 1: do out at eight thirty am Wall Street Time. Jetted
Speaker 1: mouey Had of market analysis with Brewin Dolphins says it's
Speaker 1: not all about the headline number today. The important thing
Speaker 1: is observing the trends. Also a lot of trim and
Speaker 1: patting into the right action. In terms of the headline CPI.
Speaker 1: Important will be the core data, of course, and that
Speaker 1: could still be make a this decade, and Jenny Buie
Speaker 1: with Bruin Dolphin believes it will take some time for
Speaker 1: core CPI to come down, and today's inflation data comes
Speaker 1: just one day before the feds next policy decision. Consensus
Speaker 1: calls for the Central Bank to raise rates another fifty
Speaker 1: basis points tomorrow, no matter what comes from the CPI. Print.
Speaker 1: In Carporrate News this morning, Nathan Shares of Oracle are
Speaker 1: on the rise this morning of two points seven percent.
Speaker 1: The software company reporting quarterly sales that beat estimates thanks
Speaker 1: to strong performance from its digital health records unit, and
Speaker 1: to of Elon Musk's companies are making headlines this morning.
Speaker 1: The Washington Post reports Twitter has dissolved its Trust and
Speaker 1: Safety council, and SpaceX is offering to sell insider shares
Speaker 1: at a price that would raise its valuation to about
Speaker 1: a hundred forty billion dollars. That's the five things that
Speaker 1: you need to notice start your day. Brought to you
Speaker 1: by Interactive Brokers and straight Ahead, we have your latest
Speaker 1: local headlines, plus a check a sports. This is Bloomberg
Speaker 1: Excix one on Wall Street, and Amy Morris is here
Speaker 1: with the look at what else is going on in
Speaker 1: New York and around the world. Amy, Good morning, Good morning, Nathan.
Speaker 1: New York City health officials are once again urging residents
Speaker 1: to wear a mask. New York City's Health Commissioner, Dr
Speaker 1: Ashwyn Vassan is warning there's currently a triedmic threat. We
Speaker 1: are facing unprecedented levels of flu, We're facing unprecedented levels
Speaker 1: of R s V, and we're seeing an increase in
Speaker 1: COVID cases. Health officials recommend getting a flu shot, a booster,
Speaker 1: and wearing a mask indoors in a crowded setting. To
Speaker 1: find a COVID booster or flu vaccine, to go to
Speaker 1: Vaccine finder dot NYC. Dot gov. Brooklyn hospitals still dealing
Speaker 1: with the after effects of a cyber attack that hit
Speaker 1: them last month. The New York Times reports one Brooklyn
Speaker 1: Health continues to serve patients in some of New York's
Speaker 1: poorest neighborhoods after a cyber attack forced some critical services offline.
Speaker 1: Cyber security experts are working to get its three hospitals,
Speaker 1: Interfaith Medical Center, Brookdale Hospital Medical Center, and Kingsbrook Jewish
Speaker 1: Medical Center fully back online. Tomorrow marks a decade since
Speaker 1: twenty children and six educators were shot dead at Sandy
Speaker 1: Hook Elementary School. Connecticut Governor Ned Lamont says more needs
Speaker 1: to be done on the state and federal level. Back
Speaker 1: in October, the governor said he wants to see more
Speaker 1: action there too many illegal guns. Lamont says he'll be
Speaker 1: proposing measures to close the assault weapons ban loopholes and
Speaker 1: helped take ghost guns off the street in the upcoming
Speaker 1: state legislative session. New York transit officials told city lawmakers
Speaker 1: they're about four hundred cameras operating now on subway cars
Speaker 1: throughout the city. It's part of a push to increase
Speaker 1: safety and ease passenger fears. The Metropolitan Transportation authority is
Speaker 1: also paying a million dollars each month for private security
Speaker 1: guards to Rome subway platforms, in addition to a thousand
Speaker 1: more city police officers. Global News twenty four hours a
Speaker 1: day on errand on Bloomberg, Quick Take, Power and Buy.
Speaker 1: More than twenty seven hundred journalists and analysts said more
Speaker 1: than one twenty countries. I'm Amy Morris, this is Bloomberg, Nathan.
Speaker 1: Thanks Amy, six thirty three on Wall Street time for
Speaker 1: the Bloomberg Sports up they brought to you by trying
Speaker 1: stayed outing with John Stay Show. Thanks Nathan. Wins for
Speaker 1: the Rangers and the Nets, and both have not won
Speaker 1: four games in a row. At the Garden, thrilling win
Speaker 1: for the Rangers. They trailed the Devil's do nothing early on,
Speaker 1: they rallied to tie. They won four three on a
Speaker 1: Phillip Heel goal at two fifteenth of overtime. That hands
Speaker 1: the Devil's their first two game losing streaks since they
Speaker 1: lost the first two games of the season. It ends
Speaker 1: their eleven game road winning streets. And that's what At
Speaker 1: Washington one twelve to one hundred for Kevin Durant thirty points,
Speaker 1: nine rebounds, six assists, Monday Night football at Arizona. Third
Speaker 1: play of the game, Cardinals quarterback Kyler Murray carted off
Speaker 1: at apparent torn a c L. Patriots and Cardinals were tied.
Speaker 1: Third quarter and the quarterbacks left like because he takes
Speaker 1: the shot to staff, he dropped back. Mr Crows, John
Speaker 1: hop Kids, crossing your side, Louis down the right side,
Speaker 1: stupid sports Hub at the call. Pats went on to
Speaker 1: wins to thirty and that's not the outcome the Jets wanted.
Speaker 1: The Jets and Pats are both seven and six, but
Speaker 1: New England has the tiebreaker. They beat the Jets twice.
Speaker 1: The Chargers are also seven and six, three way tie
Speaker 1: for the last a SC playoff spot. The Jets Sunday
Speaker 1: host Red at Detroit. Sounds like Jets quarterback Mike White
Speaker 1: will be able to play after tests on his injured ribs.
Speaker 1: Ken Croatia pull out in another victory. They've only won
Speaker 1: once in regulation with a couple of penalty kick victories.
Speaker 1: Just like four years ago and today and Guitar. It's
Speaker 1: Croatia against Argentina and the winner plays in Sunday's World
Speaker 1: Cup finals. John Stash where Bloomberg Sports, Nathan Okay, John,
Speaker 1: Thanks in Bloomberg Sports, Well, I was brought to you
Speaker 1: by Audie. Don't let someone else drive off in the
Speaker 1: Audi model you've always wanted. Visit your local Trice State
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Speaker 1: six thirty five on Wall Street and Bloomberg Radio is
Speaker 1: on the air from San Francisco to New York, London
Speaker 1: to Hong Kong. Let's check in with our global news
Speaker 1: team for some of the top stories heard on our
Speaker 1: three hundred affiliate radio stations around the world. I'm Steve Podas,
Speaker 1: Scott k and X in Los Angeles. We're talking about
Speaker 1: how and offering to sell insiders shares value zelon Musk's
Speaker 1: SpaceX at one forty billion dollars. I'm Cornitnahoan k H
Speaker 1: in Houston. Americans are cutting back on spending with inflation
Speaker 1: hitting the holidays. I'm Gina Servetti and for w b B,
Speaker 1: I'm in Chicago. I'm reporting that the branch of Sears
Speaker 1: focused on selling appliances in hardware, has filed for bankruptcy.
Speaker 1: I'm Stephen Carrol and Bloomberg d a B Radio in London.
Speaker 1: We've been reporting on UK wages rising it close to
Speaker 1: the fastest pace on record, maintaining pressure on the Bank
Speaker 1: of England to hike rates. I'm Ed Corey on ww
Speaker 1: J in Detroit. I'm a boarding General Motors in Stilantist
Speaker 1: rank among the worst automakers, an average estimated real world
Speaker 1: fuel economy, and those are some of the stories. Are
Speaker 1: hundred Bloomberg journalists and analysts you're working on this morning
Speaker 1: around the world. It is sixty six on Wall Street.
Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial
Speaker 1: was written by the Bloomberg Editorial Board. Have you heard
Speaker 1: of chat GPT yet? It's a thrilling, fixing, ontologically mesmerizing
Speaker 1: new technology created by the research group open Ai. In essence,
Speaker 1: chat GPTs a bot trained to generate humanlike responses to
Speaker 1: user inputs on request. It can produce basic software code,
Speaker 1: rudimentary financial analysis, amusing poems and songs, and more. Chat
Speaker 1: GPT exemplifies a widening array of artificial intelligence tools that
Speaker 1: may soon transform entire industries. As yet, policymakers seem largely
Speaker 1: unaware of this revolution. Let alone prepared for it. They
Speaker 1: should greet it in a spirit of optimism, well being
Speaker 1: attentive to its potential risks for better and worse. Chat
Speaker 1: gpt heralds a very different world in the making. This
Speaker 1: editorial was written by the Bloomberg Editorial Board. For more
Speaker 1: Bloomberg opinion, please go to Bloomberg dot com, slash Opinion
Speaker 1: or O P I n go on the Bloomberg terminal.
Speaker 1: This has been Bloomberg opinion, and you can hear Bloomberg
Speaker 1: opinion editorials every weekday at this time, and terminal customers
Speaker 1: can read more at O P I n go. Another
Speaker 1: story we're watching, United Airlines has agreed to buy a
Speaker 1: hundred Boeing seven eight seven Dreamliners as part of a
Speaker 1: multibillion dollar order for as many as three hundred of
Speaker 1: the new aircraft. The companies say the deal includes a
Speaker 1: hundred firm orders for the wide body model, along with
Speaker 1: options to add another hundred. The airline expects to take
Speaker 1: delivery starting in sixty eight. On Wall Street, straight Ahead,
Speaker 1: charges unsealed against f t X founder Sam Bankman free
Speaker 1: the latest from the nation's capital. Bloomberg Washington correspondent Joe
Speaker 1: Matthew This is Bloomberg Markets headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business apt and at Bloomberg Quicktake. This is a Bloomberg
Speaker 1: Business Flash and I'm Karen Moscow and future is on
Speaker 1: the rise. This morning, we get at the First Word
Speaker 1: Breaking news desk for today's morning call. And here's Bill Maloney. Bill,
Speaker 1: good morning, Hey, Good morning, Karen. That's right. US futures
Speaker 1: are adding to yesterday's games of down futures up a
Speaker 1: hundred and seventy four points, SIPs Game twenty and NASDAIC
Speaker 1: futures are higher by sixty three. The US ten yel
Speaker 1: at three point five nine percent, Gold is up six,
Speaker 1: oil is climbing, and bitcoin is trading higher by one
Speaker 1: point four percent. Hong Kong rose point seven percent overnight,
Speaker 1: while up markets are also trading in the green this
Speaker 1: morning and back in the US on the Economic Frinday thirty,
Speaker 1: the U s November cp I after the Bellis Night
Speaker 1: Oracle revenues, hoped estimate shares her up three in the
Speaker 1: pre market, and the crypto space Sam Bakeman Freed was
Speaker 1: arrested in the Bahamas. In other news, United Airlines to
Speaker 1: buy a hundred Bowing Dreamliners as well as fifty fifty
Speaker 1: six max aircraft, Bowing trading higher by two percent in
Speaker 1: the pre market, and wrapping things up, Philip Morris was
Speaker 1: cut to neutral at City Group net Up, cut to underweighted,
Speaker 1: Morgage Stanley and Newegian Cruise was cut to neutral. Right
Speaker 1: Ubs live from the first to breaking news descom Bill Maloney,
Speaker 1: care alright, Phil, thank you to hear live breaking news
Speaker 1: of her Bloomberg type squawk on your terminal scue. You
Speaker 1: a w K and that's a Bloomberg business flash. Now
Speaker 1: here's Amy Morris with Moore on what's going on around
Speaker 1: the world. Amy, thank you, Karen. President Biden forming an
Speaker 1: inter agency group to fight anti Semitism and other discrimination.
Speaker 1: The group will work to quote counter anti Semitism, Islamophobia,
Speaker 1: and related forms of bias. Commuters are spending more time
Speaker 1: in transit. Data from the research firm move It show
Speaker 1: the average post pandemic commute has increased by four minutes
Speaker 1: in New York City, Toronto and Milan. And sports Monday
Speaker 1: Night football, the New England Patriots beat the card in
Speaker 1: the NBA, the Nets beat the Wizards, the Celtics win,
Speaker 1: and in hockey, the Rangers beat the Devil's World Cup Semifinals.
Speaker 1: Getting underway, Litter Today, Global news twenty four hours a
Speaker 1: day on air, end on Bloomberg Quick Take, bowered by
Speaker 1: more than twenty seven hundred journalists and analysts and more
Speaker 1: than one twenty countries. I'm Amy Moore, as this is Bloomberg,
Speaker 1: Karen all right, Amy, thank you at A sixty two
Speaker 1: on Wall Street, and we turned to news and science
Speaker 1: and technology Now with a Bloomberg and j I T
Speaker 1: STEM report. It is brought to you buy. New Jersey
Speaker 1: Institute of Technology n j i T offers New Jersey's
Speaker 1: first undergraduate degree in fintech tech driven finance focused What
Speaker 1: will you make it? J I T. Learn more at
Speaker 1: n j I T dot edu slash Fintech now Here's
Speaker 1: It's making news and science, Technology, engineering and math. China's
Speaker 1: warning that it faces a big jump in COVID cases.
Speaker 1: The country is rapidly dismantling pandemic controls, and it's reopening
Speaker 1: faster than some experts have anticipated. One of China's top
Speaker 1: health advisors says, if the majority of people become infected
Speaker 1: within just a few mon there will be a severe
Speaker 1: strain on the medical system. In a bid to win
Speaker 1: regulatory approval for a sixty nine billion dollar purchase of
Speaker 1: Activision Blizzard, Microsoft has offered rivals Sony Group, they're right
Speaker 1: to sell Activision Blockbuster call of Duty. It's part of
Speaker 1: its gaming subscription service. Microsoft has publicly stated that it
Speaker 1: offered Sony a ten year deal to make Call of
Speaker 1: Duty available on the Japanese company's PlayStation console. Sony has
Speaker 1: not accepted the proposal. And Sony led a big jump
Speaker 1: in video game hardware sales in the US last month.
Speaker 1: It's the latest sign that supplies at the PlayStation five
Speaker 1: console are improving. Sony drove a jump in US games
Speaker 1: hardware sales, and that's according to the NPD Group. Sony
Speaker 1: has said that shortages of the PlayStation five are easing
Speaker 1: as chip and logistics snarls end, and that's a bloomberg
Speaker 1: n j I t STEM report. Nathan Okay, Karen, thank
Speaker 1: you for coming up to six on Wall Street Time
Speaker 1: now to check what's going on in DC. Some of
Speaker 1: the top stories in our nation's capital include the White
Speaker 1: House calling out elon attacks on Dr Anthony Faunci on Twitter.
Speaker 1: President Biden to sign the marriage equality bill into law. Today,
Speaker 1: ethics questions surrounding Justice bread Kavanaugh over his appearance at
Speaker 1: a Conservatives holiday party. But we have breaking news, of course,
Speaker 1: this morning the Securities and Exchange Commission unsealing charges against
Speaker 1: Sam Bankman Freed, accusing him of defrauding investors in f
Speaker 1: t X, following his arrest overnight in the Bahamas. Let's
Speaker 1: bring in Joe Matthew for more of our Washington correspondent,
Speaker 1: host of sound On on Bloomberg Radio. Joe, of course,
Speaker 1: we got the unsealed indictment from the SEC just moments ago.
Speaker 1: What more can you tell us, Well, you know this
Speaker 1: is a charge, and we did see this coming. We
Speaker 1: we expected charges to be announced this morning by the
Speaker 1: SEC and separately by federal prosecutors in Manhattan. The SEC
Speaker 1: charging SBF Samuel Bankman Freed with defrauding investors. That's not
Speaker 1: a shock. Federal prosecutors in Manhattan at the same time
Speaker 1: plan to unseal the case against him. Will have more
Speaker 1: to say, according to the U S attorney, But he's
Speaker 1: been arrested, and right now, this thirty year old man,
Speaker 1: whose life has changed a lot since November, is sitting
Speaker 1: in a police station in Cable Beach in the Bahamas.
Speaker 1: He will be extradited too the US. And and it's
Speaker 1: probably not a stretch for me to add to this
Speaker 1: that he's not going to be testifying today in the
Speaker 1: hearing on Capitol Hill. That many people had come to
Speaker 1: Washington to cover, there were high stakes in this conversation
Speaker 1: before the House Financial Services Committee, appears he will be
Speaker 1: spending his day, Nathan, in a police station. Well, we
Speaker 1: do know that this hearing is still happening, at least
Speaker 1: for the House Financial Services Committee later on this morning.
Speaker 1: What more are we expecting to get from the current
Speaker 1: CEO at f t X. Well, that's exactly what we're
Speaker 1: going to get, is the current CEO as opposed to
Speaker 1: the former one. Maxine Waters, the chairwoman, telling reporters they
Speaker 1: still plan to go through with this. It's supposed to
Speaker 1: start at ten o'clock. It's it's important, she says, for
Speaker 1: the American public to understand f t X exactly what
Speaker 1: it is and what is going on. But of course
Speaker 1: the key witness is not going to be there. And
Speaker 1: I'll add to that, Nathan, there's a Senate committee hearing
Speaker 1: tomorrow that he was invited to speak at and and
Speaker 1: made some news over the weekend saying that he was
Speaker 1: not scheduled to be there. Uh. There there there was
Speaker 1: an ask that he appeared virtually, but now because of
Speaker 1: the arrest, it is likely that he will appear in neither. Yeah,
Speaker 1: it's interesting to get the timing of this arrest coming
Speaker 1: just before Sam Bankman Freed was scheduled to give a hearing.
Speaker 1: What is that timing tell you, Joe, Well, look, there
Speaker 1: were a lot of questions about whether they had a
Speaker 1: real case on him, and I think at least in
Speaker 1: terms of of that perspective, this is seen as an
Speaker 1: indication that they have overwhelming evidence that they didn't wait
Speaker 1: more than a minute here essentially in terms of legal
Speaker 1: uh terms here Nathan to announce this. Uh, they've got
Speaker 1: the goods, they say on Sam Bankman Freed. He owes
Speaker 1: three billion dollars and he is likely going to be
Speaker 1: in a lot of trouble. And in terms of the
Speaker 1: hearing itself, obviously hearings like this come a lot of
Speaker 1: times with a lot of grandstanding from lawmakers. But one
Speaker 1: are the chances that we could see uh, some actual
Speaker 1: regulation coming around crypt those actual policy changes around this space. Well, look,
Speaker 1: without being specific to this case, that it did start
Speaker 1: a sort of renew an ongoing conversation about this. I'm
Speaker 1: not sure that anyone really has the answer to that question.
Speaker 1: The SEC has its own approach, the CFTC has its
Speaker 1: lawmakers have theirs, And the more we hear these conversations, Nathan,
Speaker 1: we're often reminded that lawmakers don't have a great understanding
Speaker 1: of how blockchain technology works or exactly what is involved
Speaker 1: in a company like f t X. A lot of
Speaker 1: Americans don't understand it. And then you back off and
Speaker 1: realize that somebody like Sam Bankman Freed was giving hundreds
Speaker 1: of millions of dollars to lawmakers, to Democratic politicians over
Speaker 1: the years. So there are a lot of questions about
Speaker 1: how much is known and what exactly their incentives are.
Speaker 1: But it's clear that in the new Congress there's going
Speaker 1: to be a drive towards some level of regulation, just
Speaker 1: just based on on the fact that so many individual investors,
Speaker 1: retail investors have been burned on bitcoin and and other
Speaker 1: crypto technologies. John Ray, the current CEO, who's he's a
Speaker 1: restructuring expert. He's the one who came in and said,
Speaker 1: you guys are gonna believe what's going on in here.
Speaker 1: We'll likely shot a lot more light under what happened
Speaker 1: inside that company, from the bankruptcy and beyond. Yea, And
Speaker 1: obviously there's gonna be a lot of attention on these
Speaker 1: next two days of hearings on ft X in Washington,
Speaker 1: d C. But I'm sure President Biden is hoping for
Speaker 1: a little bit of attention. On the other side of
Speaker 1: Pennsylvania Avenue, he's signing some pretty landmark legislation on a
Speaker 1: marriage equality today. We've only got about a minute left here, Joe. Yeah.
Speaker 1: And that look, that was a big deal when that
Speaker 1: happened last week, because we're living in a time where
Speaker 1: there is so much news, Nathan, and so much of
Speaker 1: it is bad news. If you if you go back
Speaker 1: to where we were last week around that period of time, Uh,
Speaker 1: there were a lot of headlines competing for attention. But
Speaker 1: that bill came back to the Senate to codify same
Speaker 1: sex and interracial marriage. It was passed in the House.
Speaker 1: It was a big moment for Nancy Pelosi. They held
Speaker 1: an enrollment ceremony. Even Barney Frank came back to town
Speaker 1: for crying out loud. So look, this is a very
Speaker 1: big deal. It is. It doesn't make same sex marriage
Speaker 1: possible in every state, but every state must acknowledge it
Speaker 1: in those that do conduct same sex marriage. And to
Speaker 1: think that it's the first time ever that inwo we're
Speaker 1: talking about this replacing the Defensive Marriage Acted is an
Speaker 1: historic thing. Absolutely, Bloomberg Washington Correspondent Joe Matthew. Of course
Speaker 1: you're gonna have a lot to talk about, interestingly during
Speaker 1: a lame duck session on sound on which you can
Speaker 1: hear every afternoon five pm Wall Street Time across Bloomberg Radio.
Speaker 1: And you can read much more about these stories on
Speaker 1: Bloomberg dot Com or on the Bloomberg terminal. When you're
Speaker 1: in Washington, listen to Bloomberg and one oh five point
Speaker 1: seven FM h D two and again, uh stay with
Speaker 1: Bloomberg Radio for full coverage of the f t X
Speaker 1: hearing at the House Financial Services Committee later on this morning.
Speaker 1: Futures moving higher out of CPI data. Today in Washington,
Speaker 1: you're listening to Bloomberg Day Right, markets headlines and breaking
Speaker 1: news twenty four hours a day at Bloomberg dot Com,
Speaker 1: The Bloomberg Business at Land at Bloomberg quick take. This
Speaker 1: is a Bloomberg business flash, and I'm Karen. Moscow futures
Speaker 1: rising this morning, with SMP futures up twenty two points
Speaker 1: or about six tenths of upper cent, and NASDAC and
Speaker 1: Dow future is also up about six tenths of upper cent,
Speaker 1: with Dow futures up two hundred fifteen points and NAS
Speaker 1: day future is up sixties seven. The decks in Germany's
Speaker 1: up nine tenths of upper cent. Ten year treasury up
Speaker 1: seven thirty seconds, you know, three point five eight percent
Speaker 1: they yield on the two year four point three six percent.
Speaker 1: Nine X Screwed oil is up half percent or thirty
Speaker 1: eight cents at seventy three dollars fifty five cents of
Speaker 1: barrel comic schooled up four tens percent or six dollars
Speaker 1: ninety cents at seventeen twenty announced. The euro one point
Speaker 1: oh five four two against the dollar, British found one
Speaker 1: point two two nine five he had one thirty seven
Speaker 1: point five four and bitcoins up one and a half
Speaker 1: percent at seven teen thousand, four hundred forty And it's
Speaker 1: a Bloomberg business flash, Navin. All right, Karen, thank you
Speaker 1: to six fifty six on Wall Street. Bloomberg Surveillance is
Speaker 1: coming up next, but first we want to take a
Speaker 1: look at some of the names moving in the pre
Speaker 1: market with Bloomberg Radio and TV Markets correspondent Credy, Goofta
Speaker 1: and Creed. We've been watching shares of Oracle all morning.
Speaker 1: A pretty positive earning story from a tech company for
Speaker 1: a change. Yeah, A one of the old guards I
Speaker 1: might have of a tech company left to look at Amazon, Microsoft, Apple, etcetera, Oracle, HP,
Speaker 1: Dell either as some of the old folks that kind
Speaker 1: of haven't or just now diversifying, I would say, into
Speaker 1: more and more member. Oracle specifically has been trying to
Speaker 1: break into the cloud business, something that Microsoft and Amazon
Speaker 1: Web Services and arguably Alphabet as well have kind of
Speaker 1: the monopoly on. Nevertheless, Oracle rising quite a bit o
Speaker 1: r c L as you're taker up about three point
Speaker 1: one percent in the pre market. They did report revenue
Speaker 1: that topped the estimates. A lot of this coming from Cerner.
Speaker 1: This is the digital health records unit. It is really
Speaker 1: interest thing because it comes at a time when you're
Speaker 1: starting to see a lot of macroeconomic headwinds for a
Speaker 1: lot of other tech companies. But this digital health record unit,
Speaker 1: which by the way is a more recent acquisition that
Speaker 1: Oracle has made, actually really helped them. Sales were up
Speaker 1: eighteen percent in this last quarter. That is massive, And
Speaker 1: of course we've got to talk about cloud revenue. This is,
Speaker 1: like you said, one of the area's Oracles trying to
Speaker 1: really expand in and claim market share in Rose about
Speaker 1: forty three percent, so they are still growing quite a bit, Nathan,
Speaker 1: trying to get back into a competition with some of
Speaker 1: that new guard you mentioned. And we've got some pretty
Speaker 1: interesting analyst recommendations on I guess you could call him
Speaker 1: some newer guard tech names. Right, Yeah, let's talk about
Speaker 1: social media. This is sure any newer guard than mass
Speaker 1: p I n s as ere taker for pinterest shares
Speaker 1: or at about three point eight percent in the pre market,
Speaker 1: Piper Sandler upgrading the company on multiple tail winds. Now,
Speaker 1: when we talk about upgrades, we trend to think that's
Speaker 1: based on AD revenue or the future of the AD market,
Speaker 1: which by the way, is a concept Quins again of
Speaker 1: the macroeconomic story. This time around, they're saying, actually, we're
Speaker 1: gonna upgrade them on some different reasons. They're doing it
Speaker 1: to an overweight from a neutral, saying that there's gonna
Speaker 1: be multiple tail winds heading into three. That does include
Speaker 1: increased active users in the third quarter after five quarters
Speaker 1: of decline, so they're saying it's going to be a
Speaker 1: real shift in the trend. They also talk about greater
Speaker 1: share in the ad markets, not the ad market specifically,
Speaker 1: but just reclaiming some of that market share. And on
Speaker 1: the other side, and on the other side, we have
Speaker 1: to talk about net App. This is another big company
Speaker 1: that you have to keep an eye on. And uh,
Speaker 1: let me just look at this taker really quickly. This
Speaker 1: there's a tricky one because net app does a lot
Speaker 1: of different things. N t A p s your ticker.
Speaker 1: It's down about just shy of four percent. So seeing
Speaker 1: a little bit of pain in that stock this morning.
Speaker 1: Morgan Stanley cutting it to underweight. The price target goes
Speaker 1: to fifty dollars from sixty six. The shares of trading
Speaker 1: on about sixty two right now, saying the backlog is
Speaker 1: smaller and estimates more at risk. So nt A pete
Speaker 1: down about three point six percent. All right. Bloomberg Radio
Speaker 1: and TV Markets correspondent Creedy Coopta keeping US as always
Speaker 1: on top of the action in the pre market trade
Speaker 1: stocks as a whole, moving higher ahead of cp I
Speaker 1: in just about an hour and a half. S and
Speaker 1: P futures of twenty one point, staff futures of two one.
Speaker 1: Nasdaq futures are higher by sixty points. Even listening to
Speaker 1: Bloomberg Daybreak, I'm Nathan Hagar along with Karen Moscow. Bloomberg
Speaker 1: surveillance starts well right now by from the financial capital
Speaker 1: of the world, broadcasting across the globe. This is w
Speaker 1: b b R New York Bloomberg. He lived in Trio.
Speaker 1: I think is opening the door for recession. We're expecting
Speaker 1: either flow growth or a