1
00:00:02,520 --> 00:00:05,240
Speaker 1: Live from the Bloomberg into Ractive Brooker Studios. This is

2
00:00:05,240 --> 00:00:09,280
Speaker 1: Bloombergy tape right for Thursday, December fifteen two. Coming up,

3
00:00:09,320 --> 00:00:13,039
Speaker 1: the shower stocks continue their sell off following J. Powell's

4
00:00:13,119 --> 00:00:15,920
Speaker 1: hawkish tone. Now it's the E. C. D and Beck

5
00:00:15,960 --> 00:00:19,639
Speaker 1: of England's turn to make great decisions. China's economy weekend

6
00:00:19,880 --> 00:00:23,680
Speaker 1: before the government dropped COVID zero and Elon Muska dumps

7
00:00:23,800 --> 00:00:27,320
Speaker 1: more shares of Tesla. I maybe Morris New Jersey Transit

8
00:00:27,320 --> 00:00:31,040
Speaker 1: will spend ninety seven million dollars for new transportation, and

9
00:00:31,160 --> 00:00:34,760
Speaker 1: investigators are searching for the cause of that NYPD warehouse

10
00:00:34,840 --> 00:00:37,680
Speaker 1: fire in Brooklyn. I'm John Stas and sports. The Knicks

11
00:00:37,720 --> 00:00:40,240
Speaker 1: made it five straight wins. They beat the Bowls in overtime.

12
00:00:40,240 --> 00:00:45,760
Speaker 1: The Ranger SECRETI straight win tonight. That's all trading ahead

13
00:00:45,800 --> 00:00:49,360
Speaker 1: on Bloomberg day Break on Bloomberg eleven, Free on New York,

14
00:00:49,560 --> 00:00:54,240
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,

15
00:00:54,520 --> 00:00:58,920
Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nineteen

16
00:00:59,160 --> 00:01:01,960
Speaker 1: and around the world Old on Bloomberg Radio dot Com

17
00:01:02,040 --> 00:01:06,960
Speaker 1: and via the Bloombird Business app. I'm Stephen Carrol eu lead.

18
00:01:08,240 --> 00:01:11,080
Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow, and

19
00:01:11,200 --> 00:01:14,959
Speaker 1: US stock index futures are falling this morning. It is

20
00:01:15,080 --> 00:01:17,319
Speaker 1: five oh one on Wall Street. We check the markets

21
00:01:17,360 --> 00:01:19,760
Speaker 1: all day long. Here on Bloomberg right now is in

22
00:01:19,840 --> 00:01:22,720
Speaker 1: p Futures are down forty four points, sets down one

23
00:01:22,760 --> 00:01:26,440
Speaker 1: point one percent. Down futures down two one, that's down

24
00:01:26,480 --> 00:01:29,600
Speaker 1: nine tens of a percent, and NASDAC features down one sixty,

25
00:01:29,680 --> 00:01:32,119
Speaker 1: that's down one and a third percent. And the tenure

26
00:01:32,160 --> 00:01:35,679
Speaker 1: Treasury that'll change, you'll three point four seven percent. Nathan, Yeah,

27
00:01:35,680 --> 00:01:38,440
Speaker 1: the sell off continues this morning, Karen. Following the Federal

28
00:01:38,480 --> 00:01:41,800
Speaker 1: Reserves final policy decision of the year, as expected, the

29
00:01:41,800 --> 00:01:44,840
Speaker 1: Central Bank raised interest rates by another fifty basis points,

30
00:01:45,080 --> 00:01:48,200
Speaker 1: but Chairman J. Powell pushed back at market hopes for

31
00:01:48,280 --> 00:01:52,120
Speaker 1: a pivot to lower rates anytime soon. Price stability is

32
00:01:52,160 --> 00:01:54,880
Speaker 1: the responsibility of the Federal Reserve and serves as the

33
00:01:54,880 --> 00:01:59,400
Speaker 1: bedrock of our economy. Without price stability, the economy doesn't

34
00:01:59,400 --> 00:02:02,600
Speaker 1: work for any one. In particular, Without price stability, we

35
00:02:02,640 --> 00:02:05,640
Speaker 1: will not achieve a sustained period of strong labor market

36
00:02:05,640 --> 00:02:08,680
Speaker 1: conditions that benefit all. J. J. Powell says the FED

37
00:02:08,720 --> 00:02:11,920
Speaker 1: plans to stay the course until the job is done well.

38
00:02:12,000 --> 00:02:15,760
Speaker 1: Nathan Stock snapfter two day winning streak after Powell's remarks

39
00:02:15,760 --> 00:02:19,200
Speaker 1: about Buggenheim chief investment officer Scott Minor, it says Powell's

40
00:02:19,200 --> 00:02:22,359
Speaker 1: tone should not have come as a surprise. We knew

41
00:02:22,480 --> 00:02:26,120
Speaker 1: they had to be very hawkish, and the reason they

42
00:02:26,120 --> 00:02:29,440
Speaker 1: had to be hawkish is that, you know, financial conditions

43
00:02:29,840 --> 00:02:33,560
Speaker 1: have loosened pretty dramatically over the last six weeks. Uh.

44
00:02:33,600 --> 00:02:37,040
Speaker 1: You know, the stock markets up substantially, rates her down

45
00:02:37,240 --> 00:02:40,359
Speaker 1: meaningfully and so um. You know, the FED I think,

46
00:02:40,400 --> 00:02:43,120
Speaker 1: felt that it needs to lean into that. And those

47
00:02:43,160 --> 00:02:45,880
Speaker 1: are marks from Scott Minored at Guggenheim are being echoed

48
00:02:45,919 --> 00:02:49,760
Speaker 1: by KPMG chief economist Diane Swung. They are more than

49
00:02:49,800 --> 00:02:53,160
Speaker 1: willing to start helping rights if inflation comes down more rapidly.

50
00:02:53,400 --> 00:02:56,160
Speaker 1: They have to send this message right now, and I

51
00:02:56,200 --> 00:02:59,160
Speaker 1: think that's where they stand. They will be a political Panada.

52
00:02:59,480 --> 00:03:02,079
Speaker 1: I have no out about j. Powell's ability to handle

53
00:03:02,160 --> 00:03:05,440
Speaker 1: the politics, given what he's already been through. KPMG Day

54
00:03:05,440 --> 00:03:08,680
Speaker 1: and Swunk and Scott Minored were joined joined us on

55
00:03:08,680 --> 00:03:11,840
Speaker 1: a special edition of Bloomberg Surveillance following the FED decision,

56
00:03:12,200 --> 00:03:15,720
Speaker 1: and we have more central bank decisions on the way, Karen,

57
00:03:15,800 --> 00:03:18,520
Speaker 1: two big ones out of Europe. We begin our team

58
00:03:18,560 --> 00:03:22,119
Speaker 1: coverage with Bloomberg's Lizzie Burden in London, where the Bank

59
00:03:22,160 --> 00:03:24,280
Speaker 1: of England is expected to follow the FED with a

60
00:03:24,320 --> 00:03:27,360
Speaker 1: fifty basis point hike. For me, what's the most interesting

61
00:03:27,400 --> 00:03:30,079
Speaker 1: thing today will be the vote split, because potentially it's

62
00:03:30,080 --> 00:03:31,959
Speaker 1: going to see a lot about where we had from

63
00:03:32,000 --> 00:03:36,000
Speaker 1: here in terms of tightening. Bank of America JP Morgan

64
00:03:36,120 --> 00:03:39,200
Speaker 1: and Numura have pointed to the possibility of a four

65
00:03:39,240 --> 00:03:42,640
Speaker 1: way split between seventy five fifty twenty five and no

66
00:03:42,840 --> 00:03:45,000
Speaker 1: hike at all. It would be the first time in

67
00:03:45,040 --> 00:03:49,400
Speaker 1: the bank's independent history and that might seem chaotic, but

68
00:03:49,640 --> 00:03:52,160
Speaker 1: really some welcome it as a confirmation that there's no

69
00:03:52,280 --> 00:03:56,040
Speaker 1: groupthink on thread Needle Street. Bloomberg's Lizzie Burden reports the

70
00:03:56,040 --> 00:03:58,760
Speaker 1: BOE decision comes down less than two hours from now,

71
00:03:59,200 --> 00:04:02,160
Speaker 1: and just over an hour after the BOE announcement, Nathan

72
00:04:02,240 --> 00:04:05,600
Speaker 1: we hear from the European Central Bank. Bloomberg's Maria today

73
00:04:05,640 --> 00:04:09,040
Speaker 1: O continues our team coverage with details on that from Frankfurt,

74
00:04:09,200 --> 00:04:11,120
Speaker 1: there was this debate would it be fifty, would it

75
00:04:11,160 --> 00:04:13,680
Speaker 1: be seventy five? But of course we can't ignore that

76
00:04:13,720 --> 00:04:16,679
Speaker 1: this is coming off the back of the Fed going

77
00:04:16,920 --> 00:04:21,400
Speaker 1: for fifty. The animal spirits also in Frankfort, suggesting this

78
00:04:21,480 --> 00:04:25,400
Speaker 1: is now inclined towards fifty basis points that would take

79
00:04:25,440 --> 00:04:29,120
Speaker 1: the deposit weight to two percent, and of course signal

80
00:04:29,200 --> 00:04:33,560
Speaker 1: discontinuation of hikes from the central bank. Bloomberg's Maria today

81
00:04:33,640 --> 00:04:35,799
Speaker 1: O says all but three of the fifty one economist

82
00:04:35,839 --> 00:04:38,880
Speaker 1: surveyed by Bloomberg predict a fifty basis point move from

83
00:04:38,880 --> 00:04:41,400
Speaker 1: the e c B. Fifty basis points seems to be

84
00:04:41,440 --> 00:04:44,120
Speaker 1: a theme for central banks. Karen, we also heard from

85
00:04:44,120 --> 00:04:46,600
Speaker 1: the Swiss National Bank this morning and they raised rates,

86
00:04:46,720 --> 00:04:50,640
Speaker 1: you guessed it, by fifty basis points, bringing the benchmark

87
00:04:50,720 --> 00:04:54,640
Speaker 1: in Switzerland to one. Alright, we turned to Asia now, Nathan,

88
00:04:54,680 --> 00:04:57,599
Speaker 1: we're economic data in focus, and fresh data out of

89
00:04:57,600 --> 00:05:00,480
Speaker 1: Beijing shows growth slowed in November. That's before the government

90
00:05:00,560 --> 00:05:03,760
Speaker 1: dropped as COVID zero policy. Bloomberg day Break Asia anchor

91
00:05:03,760 --> 00:05:07,280
Speaker 1: Brian Curtis has more from Hong Kong. Retail sales contracted

92
00:05:07,320 --> 00:05:09,920
Speaker 1: five point nine percent in November from a year ago

93
00:05:10,200 --> 00:05:12,120
Speaker 1: and that was worse than the four percent to climb.

94
00:05:12,120 --> 00:05:15,719
Speaker 1: In a Bloomberg survey, Industrial output grew two point two

95
00:05:15,760 --> 00:05:18,600
Speaker 1: percent from a year ago, that also missed the estimate.

96
00:05:18,920 --> 00:05:21,600
Speaker 1: COVID outbreaks across the country meant that people went out

97
00:05:21,640 --> 00:05:25,599
Speaker 1: less and spent less money. Economists expect more disruption in

98
00:05:25,640 --> 00:05:29,680
Speaker 1: the coming months. Brian Curtis, Bloomberg Radio. Okay, Brian, thanks.

99
00:05:29,680 --> 00:05:32,360
Speaker 1: In Corporate News this morning, we're watching shares of Tesla

100
00:05:32,440 --> 00:05:35,400
Speaker 1: after Elon Musk sold another chunk of his steak in

101
00:05:35,440 --> 00:05:38,440
Speaker 1: the company. It's got the latest Live with Bloomberg Steve Rappaport,

102
00:05:38,440 --> 00:05:40,680
Speaker 1: Good morning, Stave. You had morning, Nathan and Karen Well.

103
00:05:40,720 --> 00:05:42,840
Speaker 1: It wouldn't be a newsday without a mention of Musk

104
00:05:42,880 --> 00:05:45,720
Speaker 1: and his latest move, the Tesla founder unloading another three

105
00:05:45,720 --> 00:05:49,000
Speaker 1: point six billion dollars in company shares. Musk already sold

106
00:05:49,040 --> 00:05:51,480
Speaker 1: off eighteen billion in stock this year to finance his

107
00:05:51,520 --> 00:05:55,680
Speaker 1: acquisition of Twitter and the electric automaker. Stock plummeted this

108
00:05:55,800 --> 00:05:59,159
Speaker 1: year as investors grow concerned about Musk purchasing the platform.

109
00:05:59,440 --> 00:06:02,080
Speaker 1: With this year sell off, Tesla valuation dropped below five

110
00:06:02,160 --> 00:06:06,040
Speaker 1: hundred billion dollars for the first time since November. Live

111
00:06:06,080 --> 00:06:09,600
Speaker 1: in New York. I'm Steve Rappaport Bloomberg Day Break Right, Steve, Thanks,

112
00:06:09,600 --> 00:06:11,800
Speaker 1: and Tesla shares are down two point seven percent in

113
00:06:11,880 --> 00:06:15,080
Speaker 1: early trading. Meanwhile, the fallout continues in the crypto space

114
00:06:15,360 --> 00:06:18,160
Speaker 1: after the collapse of f t X. Democratic Senator Elizabeth

115
00:06:18,200 --> 00:06:20,880
Speaker 1: Lawren is announcing if by partisan bill aim to crack

116
00:06:20,920 --> 00:06:24,320
Speaker 1: down on digital currencies used in money laundering. This is

117
00:06:24,360 --> 00:06:27,360
Speaker 1: all about what we need to do right now, and

118
00:06:27,400 --> 00:06:30,400
Speaker 1: we need to stop the money laundering. We need to

119
00:06:30,400 --> 00:06:33,680
Speaker 1: stop the cheating that's going on in crypto, and that

120
00:06:33,720 --> 00:06:36,640
Speaker 1: means just getting a set of rules in place. Same

121
00:06:36,720 --> 00:06:40,120
Speaker 1: kind of transaction, same kind of risk, means we've got

122
00:06:40,120 --> 00:06:42,920
Speaker 1: to have the same rules. And it also means we've

123
00:06:42,920 --> 00:06:45,520
Speaker 1: got to have a cop on the beat who was

124
00:06:45,600 --> 00:06:50,240
Speaker 1: well enough financed. And if Senator Lawrensville becomes law, crypto

125
00:06:50,320 --> 00:06:53,320
Speaker 1: exchanges will be required to verify customer identities the way

126
00:06:53,360 --> 00:06:56,640
Speaker 1: banks and other financial institutions already do. Straight ahead your

127
00:06:56,720 --> 00:07:03,920
Speaker 1: latest local headlines and this is Bloomberg. Thanks Karen. It

128
00:07:04,080 --> 00:07:06,960
Speaker 1: is thirty three degrees in midtown Manhattan. We got rain

129
00:07:07,000 --> 00:07:09,040
Speaker 1: moving in this afternoon, heading to the mid forties. It

130
00:07:09,040 --> 00:07:12,320
Speaker 1: will turn breezy tonight, evening lows in the forties. Temperatures

131
00:07:12,320 --> 00:07:16,080
Speaker 1: will rise overnight as rain continues. Time now to look

132
00:07:16,080 --> 00:07:17,760
Speaker 1: at some of the other stories making news in New

133
00:07:17,840 --> 00:07:19,840
Speaker 1: York and around the world. For that, we're joined by

134
00:07:19,880 --> 00:07:23,200
Speaker 1: Bloomberg's Amy Morris. Good morning, Amy, all right, Good morning Nathan.

135
00:07:23,240 --> 00:07:26,520
Speaker 1: The courts will not step into immediately stop New York

136
00:07:26,600 --> 00:07:29,800
Speaker 1: Mayor Eric adams plans to force mentally ill people from

137
00:07:29,880 --> 00:07:33,160
Speaker 1: the streets and into treatment. The judge found no evidence

138
00:07:33,160 --> 00:07:36,160
Speaker 1: that irreparable harm would occur before he issues his final

139
00:07:36,240 --> 00:07:38,760
Speaker 1: ruling on the practice in a couple of weeks. Advocates

140
00:07:38,760 --> 00:07:41,360
Speaker 1: for people with mental illnesses. When it stopped, they say

141
00:07:41,400 --> 00:07:45,160
Speaker 1: police officers should not be first responders for those needing healthcare.

142
00:07:45,480 --> 00:07:48,640
Speaker 1: Crews are still looking for hot spots as investigators search

143
00:07:48,720 --> 00:07:51,160
Speaker 1: for the cause of a huge fire at an NYPD

144
00:07:51,280 --> 00:07:55,440
Speaker 1: evidence warehouse in Brooklyn. Former police Chief Terry Monahan says

145
00:07:55,480 --> 00:07:58,480
Speaker 1: everything's been destroyed. They really don't even expect anything to

146
00:07:58,520 --> 00:08:01,520
Speaker 1: be salvageable in there. Obviously, they're not going to oversaw

147
00:08:02,000 --> 00:08:04,840
Speaker 1: until they get inside and start looking around on hands

148
00:08:04,880 --> 00:08:07,280
Speaker 1: and some items in the warehouse, We're going to be destroyed.

149
00:08:07,320 --> 00:08:10,160
Speaker 1: Anyway before the blaze, but some of the eleven thousand

150
00:08:10,280 --> 00:08:14,440
Speaker 1: barrels of evidence were related to COLT cases. New Jersey

151
00:08:14,440 --> 00:08:17,280
Speaker 1: Transit is spending nineties seven million dollars to buy a

152
00:08:17,280 --> 00:08:21,680
Speaker 1: new ferry, sixty new busses, and rebuild thirty five locomotives,

153
00:08:21,880 --> 00:08:24,640
Speaker 1: and jay dot com reports the board exercised an option

154
00:08:24,680 --> 00:08:28,400
Speaker 1: with New Flyer to buy sixty more articulated buses. They

155
00:08:28,440 --> 00:08:32,360
Speaker 1: awarded seven million dollars in contracts to Hornblower Yacht for

156
00:08:32,400 --> 00:08:35,320
Speaker 1: a new ferry, and they'll contract with Caterpillar for the

157
00:08:35,320 --> 00:08:38,400
Speaker 1: new locomotives. The Transits Board of Directors signed off on

158
00:08:38,400 --> 00:08:41,440
Speaker 1: the plan yesterday. New Jersey Governor Phil Murphy is urging

159
00:08:41,440 --> 00:08:44,760
Speaker 1: parents to get their young children updated coronavirus booster shots.

160
00:08:45,000 --> 00:08:47,880
Speaker 1: Murphy says children ages six months to five years old

161
00:08:47,920 --> 00:08:51,040
Speaker 1: are eligible now to get those vaccines, but only five

162
00:08:51,080 --> 00:08:53,240
Speaker 1: and a half percent of New Jersey children between the

163
00:08:53,240 --> 00:08:56,440
Speaker 1: ages of six months and four years have completed their

164
00:08:56,440 --> 00:09:02,120
Speaker 1: primary series. Russian cosmonauts can'ts to plan spacewalk yesterday when

165
00:09:02,160 --> 00:09:06,560
Speaker 1: they noticed a leak outside their spacecraft. NASA officials talked

166
00:09:06,559 --> 00:09:09,600
Speaker 1: about it. We noticed a visible stream of flakes coming

167
00:09:09,679 --> 00:09:12,280
Speaker 1: from the aft of the Sayers near the instrumentation and

168
00:09:12,320 --> 00:09:17,360
Speaker 1: propulsion module that was indicative of the spacecraft is ducked

169
00:09:17,400 --> 00:09:20,640
Speaker 1: at the International Space Station Russia. Still trying to figure

170
00:09:20,679 --> 00:09:23,200
Speaker 1: out what it is and what caused it. Global News

171
00:09:23,240 --> 00:09:26,120
Speaker 1: twenty four hours a day on airin Don Bloomberg Quick Take,

172
00:09:26,200 --> 00:09:30,120
Speaker 1: powered by more than journalists and analysts in more than

173
00:09:30,160 --> 00:09:34,320
Speaker 1: one countries. I'm anymore is this is Bloomberg, Nathan, Thank

174
00:09:34,360 --> 00:09:41,400
Speaker 1: you Amy. Time now for the Bloomberg Sports Upday, brought

175
00:09:41,440 --> 00:09:44,040
Speaker 1: to you by Tri stayed out. He here's John Stanho.

176
00:09:44,160 --> 00:09:46,040
Speaker 1: Good morning, John, Good morning. Eat the next with the

177
00:09:46,040 --> 00:09:49,320
Speaker 1: start of an unusual two games series in Chicago. Played

178
00:09:49,320 --> 00:09:51,400
Speaker 1: the Bulls last night and they'll be there again tomorrow.

179
00:09:51,440 --> 00:09:54,520
Speaker 1: Last night went overtime, Nicks pulled out the win on

180
00:09:55,440 --> 00:09:57,480
Speaker 1: their fifth win in a row, and Julius Randalls had

181
00:09:57,520 --> 00:09:59,200
Speaker 1: a lot to do with that plane. Much more like

182
00:09:59,280 --> 00:10:02,360
Speaker 1: you did two years ago then last season when he struggled.

183
00:10:02,440 --> 00:10:05,000
Speaker 1: Randalls scored thirty one at thirteen b bound seven assist

184
00:10:05,040 --> 00:10:08,360
Speaker 1: thirty points. Here Jalen Brunson. The Warriors lost at Indiana,

185
00:10:08,400 --> 00:10:10,720
Speaker 1: defending NBA champs. Can't went on the road. They're two

186
00:10:10,760 --> 00:10:14,320
Speaker 1: and thirteen and Steph Curry left last night when injured shoulder.

187
00:10:14,400 --> 00:10:17,600
Speaker 1: Rangers host Toronto Tonight. Blue Shirts have won their last

188
00:10:17,600 --> 00:10:20,319
Speaker 1: four college hopes easy went for Seaton Hall over Drexel

189
00:10:20,360 --> 00:10:23,040
Speaker 1: battle of top twenty teams. U C l A went

190
00:10:23,080 --> 00:10:25,240
Speaker 1: to Maryland and won easily, up by twenty nine at

191
00:10:25,240 --> 00:10:27,960
Speaker 1: a half. Sunday's World Cup Final promises to be a

192
00:10:27,960 --> 00:10:31,040
Speaker 1: classic Argentina, with Lionel Messi looking for his elusive first

193
00:10:31,120 --> 00:10:34,040
Speaker 1: championship taking on France, who has a chance to win

194
00:10:34,120 --> 00:10:36,800
Speaker 1: back to back World Cups. It's only happened once, and

195
00:10:36,800 --> 00:10:39,360
Speaker 1: that was Brazil sixty years ago. As the Jets get

196
00:10:39,360 --> 00:10:42,120
Speaker 1: ready to host the Detroit Lyons, Sunday, coach Rob Sala

197
00:10:42,160 --> 00:10:45,720
Speaker 1: asked about quarterback Zack Wilson, who lost his starting job.

198
00:10:46,320 --> 00:10:49,640
Speaker 1: Been doing a great job, he he has. He's been

199
00:10:49,679 --> 00:10:53,160
Speaker 1: deliberate in his approach over the last three weeks. Um,

200
00:10:53,280 --> 00:10:56,600
Speaker 1: he's been pulled himself accountable with regards to how he

201
00:10:56,640 --> 00:11:00,280
Speaker 1: wants to attack practice. Uh, how he's been warming in

202
00:11:00,360 --> 00:11:02,760
Speaker 1: practice going against our defense, which I think is a

203
00:11:02,760 --> 00:11:05,880
Speaker 1: pretty good defensive goal against. Salvo has moved Wilson from

204
00:11:06,000 --> 00:11:08,880
Speaker 1: third string up the second behind Mike White, the forty

205
00:11:08,960 --> 00:11:11,440
Speaker 1: Niners bring their sixth game winning straight tonight into Seattle.

206
00:11:11,640 --> 00:11:13,480
Speaker 1: Chance of the Niners that clinch the NFC West. Their

207
00:11:13,559 --> 00:11:16,880
Speaker 1: quarterback now is rookie Rock Purdy, though the Niners listing

208
00:11:16,920 --> 00:11:20,120
Speaker 1: as questionable rib and oblique injuries X Matt Noah Synder

209
00:11:20,120 --> 00:11:23,720
Speaker 1: guards signed with the Dodgers. John Stashwarre Bloomberg Sports, Nathan

210
00:11:23,920 --> 00:11:26,680
Speaker 1: all Right, John, thank you, and Bloomberg Sports was brought

211
00:11:26,679 --> 00:11:29,240
Speaker 1: to you by Audie. Don't let someone else drive off

212
00:11:29,600 --> 00:11:32,080
Speaker 1: in the autie model you've always wanted. Visit your local

213
00:11:32,120 --> 00:11:34,000
Speaker 1: price state autie dealer to get behind the wheel of

214
00:11:34,000 --> 00:11:38,240
Speaker 1: yours today, or visit outie offers dot com for more information.

215
00:11:38,840 --> 00:11:42,400
Speaker 1: SMP futures down forty three points, a drop of one

216
00:11:42,480 --> 00:11:45,559
Speaker 1: point one percent following the FED decision. DAL futures down

217
00:11:45,600 --> 00:11:48,480
Speaker 1: two hundred seventy nine points. In NASDAC futures on the

218
00:11:48,559 --> 00:11:51,080
Speaker 1: decline by a hundred fifty five points. That's the drop

219
00:11:51,120 --> 00:11:54,440
Speaker 1: of one point three percent. The tenure treasury is down

220
00:11:54,480 --> 00:11:56,839
Speaker 1: one thirty second. The yield three point four eight percent

221
00:11:56,880 --> 00:11:59,480
Speaker 1: yield on the two year four point to four percent.

222
00:12:02,800 --> 00:12:06,199
Speaker 1: Live from coast to coast, from New York to San Francisco,

223
00:12:06,400 --> 00:12:10,280
Speaker 1: Boston to Washington, d C. Nationwide on Sirius Examp, the

224
00:12:10,320 --> 00:12:14,960
Speaker 1: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

225
00:12:16,160 --> 00:12:18,680
Speaker 1: You are listening to Bloomberg day Break. Good morning. I'm

226
00:12:18,760 --> 00:12:22,520
Speaker 1: Nathan Hagar on a morning following some tough medicine from

227
00:12:22,520 --> 00:12:25,600
Speaker 1: Federal Reserve chair Jerome Powell to a market that has

228
00:12:25,640 --> 00:12:28,600
Speaker 1: been hoping for lower interest rates next year, Pal says

229
00:12:28,640 --> 00:12:31,640
Speaker 1: there is still a ways to go to get inflation

230
00:12:31,760 --> 00:12:34,400
Speaker 1: under control. And later this morning the European Central Bank

231
00:12:34,400 --> 00:12:37,119
Speaker 1: in the Bank of England get their turn in the spotlight.

232
00:12:37,200 --> 00:12:40,160
Speaker 1: Let's get more insights now. Simon French is with US

233
00:12:40,520 --> 00:12:44,840
Speaker 1: chief economist at PAMR Gordon Simon, good morning. Were you

234
00:12:44,880 --> 00:12:49,480
Speaker 1: surprised by the hawkish tone from Chairman Powell? Good morning?

235
00:12:49,520 --> 00:12:52,000
Speaker 1: Nice and h No, I wasn't. If I'm honest, I

236
00:12:52,040 --> 00:12:56,120
Speaker 1: think the while we've seen a rollover in both core

237
00:12:56,200 --> 00:12:59,480
Speaker 1: and headline U S insation, I think it's still uncomfortably

238
00:12:59,520 --> 00:13:02,040
Speaker 1: high from any people on the FMC. And what was

239
00:13:02,200 --> 00:13:05,400
Speaker 1: I was really struck by in the summary of economic

240
00:13:05,400 --> 00:13:10,080
Speaker 1: projections is quite how much FMC participants still see the

241
00:13:10,240 --> 00:13:13,480
Speaker 1: risks to their inflation forecasts as skewed to the high side,

242
00:13:14,320 --> 00:13:20,400
Speaker 1: and the risks therefore of more interest rate increases during

243
00:13:21,400 --> 00:13:23,720
Speaker 1: the the market is pricing. But let's make no mistake

244
00:13:23,840 --> 00:13:27,640
Speaker 1: that Jerom Powell is taking on the bond market, which

245
00:13:27,679 --> 00:13:31,880
Speaker 1: is not believing of that policy action. Is this a

246
00:13:31,960 --> 00:13:35,199
Speaker 1: FED that's trying to steer the market then towards tighter

247
00:13:35,240 --> 00:13:38,720
Speaker 1: conditions to kind of do some of the work for

248
00:13:38,800 --> 00:13:43,640
Speaker 1: the Fed. I think you're absolutely right. Financial conditions across

249
00:13:43,640 --> 00:13:47,880
Speaker 1: a broad set of metrics have have loosened in recent weeks.

250
00:13:47,960 --> 00:13:53,480
Speaker 1: On those simply on extraly market evaluations moving higher, a

251
00:13:53,600 --> 00:13:56,520
Speaker 1: bit of a sell off on the US dollar loosening,

252
00:13:56,559 --> 00:13:59,200
Speaker 1: the kind of financial conditions that Jerom Powell the FED

253
00:13:59,240 --> 00:14:04,600
Speaker 1: actually want to snuff out core inflation in the US economy.

254
00:14:04,640 --> 00:14:09,400
Speaker 1: Were thinking wages, shelter rents, the type of persistent wage

255
00:14:09,679 --> 00:14:13,280
Speaker 1: pressures that actually monetary policy is better at addressing, and

256
00:14:13,320 --> 00:14:15,679
Speaker 1: he is worried that that job becomes harder than more

257
00:14:15,720 --> 00:14:20,040
Speaker 1: the market tries to front run any either plateau ng

258
00:14:20,120 --> 00:14:23,880
Speaker 1: or subsequent cuts in in the FED funds rate. So yeah, absolutely,

259
00:14:23,880 --> 00:14:28,520
Speaker 1: I think he's uncomfortable with pricing. And yesterday's dynamics were

260
00:14:28,560 --> 00:14:31,480
Speaker 1: designed to lean into that. So then where does that

261
00:14:31,600 --> 00:14:36,280
Speaker 1: leave market expectations for where rates could go from here?

262
00:14:36,320 --> 00:14:39,560
Speaker 1: Does that open the possibility of a little bit of

263
00:14:39,560 --> 00:14:42,640
Speaker 1: wiggle room for this FED, even as at least rhetorically

264
00:14:43,120 --> 00:14:48,000
Speaker 1: it's saying that rates aren't going to come down anytime soon. Well,

265
00:14:48,080 --> 00:14:50,280
Speaker 1: it wants to be data dependent, It wants to go

266
00:14:50,440 --> 00:14:53,000
Speaker 1: meeting to meeting with were certainly in the era and

267
00:14:53,080 --> 00:14:55,520
Speaker 1: not just for the FED but for all major central

268
00:14:55,560 --> 00:15:01,640
Speaker 1: banks of stopping forward guidance, with stopping guide markets explicitly

269
00:15:01,720 --> 00:15:06,960
Speaker 1: beyond the next scheduled meeting. And I think in an

270
00:15:07,040 --> 00:15:11,000
Speaker 1: environment where we're all guessing, look, we can have sophisticated models,

271
00:15:11,080 --> 00:15:14,560
Speaker 1: we can have well created communications, but all of us

272
00:15:14,600 --> 00:15:19,200
Speaker 1: in markets, economists, central bankers are guessing how persistent this

273
00:15:19,480 --> 00:15:21,840
Speaker 1: bout of inflation the types that we haven't seen for

274
00:15:21,840 --> 00:15:24,520
Speaker 1: forty years? Hopps, this new will be so Yes, when

275
00:15:24,520 --> 00:15:28,160
Speaker 1: you're talking about riggle room, I do think FMC members

276
00:15:28,160 --> 00:15:31,640
Speaker 1: put a high value on having the ability to say, look,

277
00:15:31,640 --> 00:15:34,920
Speaker 1: the data has changed, so are expected pathway has changed,

278
00:15:34,960 --> 00:15:38,040
Speaker 1: and you need to price that into your m your

279
00:15:38,080 --> 00:15:41,280
Speaker 1: expectations for what the risk free rate looks like during

280
00:15:42,640 --> 00:15:44,640
Speaker 1: does the FED set us up for the central bank

281
00:15:44,680 --> 00:15:46,560
Speaker 1: decisions that we're going to be getting today. I mean,

282
00:15:46,600 --> 00:15:48,760
Speaker 1: we've already heard from the Swiss National Bank with a

283
00:15:48,800 --> 00:15:51,520
Speaker 1: fifty basis point move of its own, and there's an

284
00:15:51,520 --> 00:15:55,800
Speaker 1: expectation in the market for fifty from the ECB and

285
00:15:55,960 --> 00:15:59,960
Speaker 1: the b o E this morning. Safety and numbers mate

286
00:16:00,040 --> 00:16:02,800
Speaker 1: and safety in numbers, and that is if you don't

287
00:16:02,840 --> 00:16:07,400
Speaker 1: know what your transmission mechanism is from monkey policy through

288
00:16:07,440 --> 00:16:10,080
Speaker 1: to the real economy. If you're worried about being picked

289
00:16:10,120 --> 00:16:13,360
Speaker 1: on because you're an outlier, you're seen as behind the curve,

290
00:16:13,840 --> 00:16:18,280
Speaker 1: then actually moving as a herd as the central banks

291
00:16:18,280 --> 00:16:22,680
Speaker 1: appear to be doing is probably the list least risky

292
00:16:22,720 --> 00:16:25,040
Speaker 1: option here. So yes, the fact that we see four

293
00:16:25,080 --> 00:16:27,680
Speaker 1: of the major central banks, potentially by the end of today,

294
00:16:28,200 --> 00:16:32,520
Speaker 1: all moving fifty basis points um. That is an indication

295
00:16:32,600 --> 00:16:35,320
Speaker 1: of where they are psychologically and know where they are

296
00:16:35,360 --> 00:16:37,880
Speaker 1: in terms of their interpretations of the data, trying to

297
00:16:37,920 --> 00:16:41,080
Speaker 1: minimize their errors rather than being certain of the correct stance.

298
00:16:41,600 --> 00:16:44,920
Speaker 1: Only about thirty seconds left here, Simon, But the European

299
00:16:45,000 --> 00:16:49,440
Speaker 1: banks have a lot of different inflation dynamics compared to

300
00:16:49,440 --> 00:16:53,120
Speaker 1: the US don't they, particularly given the war in Ukraine. Yeah,

301
00:16:53,160 --> 00:16:57,000
Speaker 1: it's all about supply driven energy lead inflation. In Europe.

302
00:16:57,000 --> 00:16:59,400
Speaker 1: There's no real signs of demand search like you've got

303
00:16:59,400 --> 00:17:03,960
Speaker 1: in the US. Very different backdrop for the ECB, and

304
00:17:04,000 --> 00:17:07,680
Speaker 1: that suggests their terminal rates for much policy will be

305
00:17:07,720 --> 00:17:10,719
Speaker 1: considerably lower than the federal reserves because it's just different

306
00:17:10,720 --> 00:17:14,680
Speaker 1: inflation they're dealing with much less responsive to raising the

307
00:17:15,080 --> 00:17:18,240
Speaker 1: bank right man. We get those decisions from the Bank

308
00:17:18,280 --> 00:17:20,840
Speaker 1: of England in just a little bit less than two

309
00:17:20,840 --> 00:17:24,520
Speaker 1: hours time seven am Wall Street time, and then the

310
00:17:24,560 --> 00:17:27,440
Speaker 1: European Central Bank an hour and fifteen minutes after that

311
00:17:27,800 --> 00:17:31,360
Speaker 1: at eight fifteen. Lots to dig into, lots of central

312
00:17:31,359 --> 00:17:34,200
Speaker 1: bank moves. Great to get your thoughts this morning, Simon again,

313
00:17:34,240 --> 00:17:36,920
Speaker 1: thanks for being with us. That was Simon French, chief

314
00:17:36,920 --> 00:17:42,600
Speaker 1: economist at PAMRA Gordon SMP futures following the Fed's decision

315
00:17:43,000 --> 00:17:45,879
Speaker 1: down forty five points, a drop of one point one percent,

316
00:17:45,960 --> 00:17:49,520
Speaker 1: DAL futures down two and NASTAC futures leading the declines,

317
00:17:49,600 --> 00:17:52,359
Speaker 1: down nearly one point four percent, a drop of a

318
00:17:52,440 --> 00:17:55,360
Speaker 1: hundred sixty one points. The tenure Treasury is down one

319
00:17:55,400 --> 00:17:59,080
Speaker 1: thirty second yield three point four eight percent. This is

320
00:17:59,080 --> 00:18:05,119
Speaker 1: Bloomberg Markets headlines and breaking news twenty four hours a

321
00:18:05,200 --> 00:18:08,520
Speaker 1: day at Bloomberg dot Com, the Bloomberg Business Atland at

322
00:18:08,520 --> 00:18:17,880
Speaker 1: Bloomberg Quicktake, This is a Bloomberg Business flash, and I'm

323
00:18:17,960 --> 00:18:21,360
Speaker 1: kared Moscow US DOT Index futures and European shares following

324
00:18:21,400 --> 00:18:24,760
Speaker 1: after the Federal Reserve rebuffed expectations for a dubish Tilton

325
00:18:24,840 --> 00:18:27,560
Speaker 1: said interest rates will go higher for longer. We checked

326
00:18:27,560 --> 00:18:29,680
Speaker 1: the markets all day long here on Bloomberg Guess and

327
00:18:29,760 --> 00:18:32,680
Speaker 1: P futures They're down about forty seven points. You're down

328
00:18:32,720 --> 00:18:35,080
Speaker 1: one point two percent down futures down nine tens of

329
00:18:35,200 --> 00:18:37,959
Speaker 1: upper cent or three hundred eight points, and NASDAG futures

330
00:18:38,000 --> 00:18:40,399
Speaker 1: down one and a half percent on one d seventy

331
00:18:40,400 --> 00:18:42,840
Speaker 1: one points. The docks in Germany's down one at a

332
00:18:42,920 --> 00:18:46,600
Speaker 1: third percent ten, Your treasury down one and one thirty second.

333
00:18:46,640 --> 00:18:48,960
Speaker 1: The yel three point four eight percent yield on the

334
00:18:48,960 --> 00:18:51,760
Speaker 1: two year four point to four percent. Nine. Mex scrude

335
00:18:51,800 --> 00:18:54,040
Speaker 1: oil is down about two tens of upper cent or

336
00:18:54,040 --> 00:18:57,240
Speaker 1: seventeen cents at seventy seven twelve aparrel coll Max School

337
00:18:57,280 --> 00:18:59,800
Speaker 1: down one point eight percent on thirty two dollars thirty cents.

338
00:18:59,800 --> 00:19:02,880
Speaker 1: It's sventeen eighties six forty announced. The euro one point

339
00:19:03,040 --> 00:19:05,400
Speaker 1: six one nine against the dollar, British found one point

340
00:19:05,640 --> 00:19:08,640
Speaker 1: three zero the end one thirty six point seven too.

341
00:19:09,160 --> 00:19:11,719
Speaker 1: And Bitcoin this morning is down a tens of a percent.

342
00:19:11,840 --> 00:19:14,919
Speaker 1: It's at about seventeen thousand and seven hundred dollars. We

343
00:19:14,920 --> 00:19:17,400
Speaker 1: continue to watch shares of Tesla down about three percent

344
00:19:17,480 --> 00:19:20,120
Speaker 1: in early trading after Elon muscle at three point six

345
00:19:20,200 --> 00:19:22,639
Speaker 1: billion dollars of shares. And we have a busy morning

346
00:19:22,680 --> 00:19:26,159
Speaker 1: for economic data. Among the reports we're getting November retail

347
00:19:26,240 --> 00:19:29,120
Speaker 1: sales and the weekly report on initial jobless claims. That's

348
00:19:29,119 --> 00:19:31,760
Speaker 1: a Bloomberg business flash. Now here's Amy Morris with Moore

349
00:19:31,840 --> 00:19:34,359
Speaker 1: on what's going on around the world. Amy, good morning,

350
00:19:34,680 --> 00:19:37,320
Speaker 1: good morning, and thank you. Karen Fiser has an agreement

351
00:19:37,359 --> 00:19:40,560
Speaker 1: to sell its anti viral medication batchel of It in China.

352
00:19:40,680 --> 00:19:43,800
Speaker 1: This as sources tell Bloomberg, the White House will reopen

353
00:19:43,800 --> 00:19:46,520
Speaker 1: a program today to allow people in the US to

354
00:19:46,680 --> 00:19:50,040
Speaker 1: order batches of at home COVID tests for free. The

355
00:19:50,160 --> 00:19:54,280
Speaker 1: intruder accused of attacking how speaker Nancy Pelosi's husband has

356
00:19:54,280 --> 00:19:57,880
Speaker 1: been ordered to stand trial for attempted murder. Prosecutors say

357
00:19:58,000 --> 00:20:01,200
Speaker 1: David de Pop has a list of their targets, including

358
00:20:01,480 --> 00:20:05,800
Speaker 1: California Governor Gavin Newsom and after Tim, Tom Hanks and sports.

359
00:20:05,800 --> 00:20:08,680
Speaker 1: In the NBA, the Wizards and Warriors lose the NIXT win.

360
00:20:08,840 --> 00:20:11,760
Speaker 1: The World Cup Final is set for Sunday, when Argentina

361
00:20:11,920 --> 00:20:15,600
Speaker 1: takes on France Global News twenty four hours a day

362
00:20:15,680 --> 00:20:18,440
Speaker 1: on air rand on Bloomberg quick Take, bowered by more

363
00:20:18,440 --> 00:20:21,760
Speaker 1: than twenty d journalists and analysts in more than one

364
00:20:21,840 --> 00:20:25,680
Speaker 1: hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan,

365
00:20:25,880 --> 00:20:28,399
Speaker 1: Thank you, Amy. It's coming up to five four on

366
00:20:28,480 --> 00:20:32,000
Speaker 1: Wall Street on Nathan Hagar, this is Bloomberg Daybreak. The

367
00:20:32,080 --> 00:20:35,080
Speaker 1: collapse of f t X has left investors asking what's

368
00:20:35,119 --> 00:20:38,040
Speaker 1: next for the crypto exchange and the industry at large.

369
00:20:38,320 --> 00:20:41,159
Speaker 1: The new CEO of f t X, John J. Rays,

370
00:20:41,200 --> 00:20:43,480
Speaker 1: has to find on Capitol Hill this week with a

371
00:20:43,600 --> 00:20:48,359
Speaker 1: blunt explanation for the collapse. This isn't uh, you know,

372
00:20:48,400 --> 00:20:51,920
Speaker 1: sophisticated whatsoever. This is just plain old embezzlement. And after

373
00:20:52,000 --> 00:20:55,920
Speaker 1: that testimony from John Ray, Guggenheim Chief investment Officer Scott

374
00:20:55,920 --> 00:20:59,600
Speaker 1: Miner joined Bloomberg's Tom Keene and Lisa Abramowitz to warn

375
00:20:59,680 --> 00:21:03,000
Speaker 1: of war shoes to drop after the f t X fallout.

376
00:21:03,280 --> 00:21:07,160
Speaker 1: Still mind, it is confident the currency digitalization will proceed.

377
00:21:07,240 --> 00:21:10,119
Speaker 1: But what he had to say, you are acclaimed as

378
00:21:10,160 --> 00:21:14,240
Speaker 1: a student of what we're living in crypto in bitcoin.

379
00:21:14,760 --> 00:21:21,520
Speaker 1: Do you have confidence that system can move forward? I do, Tom.

380
00:21:21,560 --> 00:21:26,320
Speaker 1: You know, a year ago we were talking about crypto

381
00:21:26,400 --> 00:21:30,679
Speaker 1: and there were approximately nineteen thousand coins, to which my

382
00:21:30,840 --> 00:21:34,800
Speaker 1: comment was, this is mostly crap and there's going to

383
00:21:34,840 --> 00:21:38,200
Speaker 1: be a washout and and just like the Internet bubble, Uh,

384
00:21:38,240 --> 00:21:41,560
Speaker 1: you know, we will have survivors. And uh, you know,

385
00:21:41,800 --> 00:21:47,600
Speaker 1: the digitalization of currency UH is just in its infancy

386
00:21:47,840 --> 00:21:52,320
Speaker 1: and uh you know how this evolves now UH is

387
00:21:52,359 --> 00:21:56,800
Speaker 1: going to require, you know, a regulatory framework to legitimize it.

388
00:21:57,160 --> 00:21:59,600
Speaker 1: And I think we will move forward and I think

389
00:21:59,680 --> 00:22:04,320
Speaker 1: this will be transformative to the general economy. Lisa would

390
00:22:04,359 --> 00:22:06,359
Speaker 1: like to weigh in here, Mr No, I don't want

391
00:22:06,359 --> 00:22:08,760
Speaker 1: to weigh in this per se, but there is a

392
00:22:08,840 --> 00:22:12,879
Speaker 1: question of whether the whole FTX phenomenon really was born

393
00:22:13,000 --> 00:22:15,600
Speaker 1: out of the easy money policies, and whether there are

394
00:22:15,640 --> 00:22:18,080
Speaker 1: a lot more shoes to drop in the financial stability

395
00:22:18,119 --> 00:22:20,280
Speaker 1: aspect of this. As everyone talks soft landing and as

396
00:22:20,280 --> 00:22:23,040
Speaker 1: we talk about disinflation, how much less of a chance

397
00:22:23,160 --> 00:22:24,760
Speaker 1: is there of that outcome which I know you've been

398
00:22:24,800 --> 00:22:30,800
Speaker 1: talking a lot about in terms of the collapse. Yes,

399
00:22:30,920 --> 00:22:34,119
Speaker 1: some sort of you know, more financial disruptions, shakeouts that

400
00:22:34,280 --> 00:22:36,440
Speaker 1: things going to zero that were overnight that we're worth

401
00:22:36,760 --> 00:22:39,399
Speaker 1: tens of millions of dollars. Sure, I mean, look, I

402
00:22:39,400 --> 00:22:42,600
Speaker 1: think there's there's more to come, Lisa. Uh. And the

403
00:22:42,680 --> 00:22:45,240
Speaker 1: reason is that you know that this is just like

404
00:22:45,920 --> 00:22:50,560
Speaker 1: any number of periods where we've had easy money and

405
00:22:50,720 --> 00:22:56,000
Speaker 1: a lot of speculation, and so the weakest players fall first,

406
00:22:56,720 --> 00:23:00,639
Speaker 1: and so crypto is obviously something that was crazy. N

407
00:23:00,720 --> 00:23:04,119
Speaker 1: f T s were I never quite understood them. I

408
00:23:04,160 --> 00:23:09,240
Speaker 1: love the normal did of me was just great. But

409
00:23:09,400 --> 00:23:12,080
Speaker 1: the you know, you look at um, you know, look

410
00:23:12,080 --> 00:23:16,280
Speaker 1: at what happened uh in with the Bank of England. Uh,

411
00:23:16,280 --> 00:23:19,160
Speaker 1: you know, we averted. I think a global financial crisis

412
00:23:19,200 --> 00:23:23,760
Speaker 1: there by their quick response. So I think another shoe

413
00:23:23,800 --> 00:23:26,640
Speaker 1: to drop them. I can't tell you where it is.

414
00:23:27,119 --> 00:23:31,000
Speaker 1: And that was Goggenheim Chief investment Officer Scott Minerd speaking

415
00:23:31,000 --> 00:23:33,560
Speaker 1: on Bloomberg surveillance You can hear the full interview on

416
00:23:33,640 --> 00:23:37,560
Speaker 1: Bloomberg dot com. Catch more conversations just like that one

417
00:23:37,640 --> 00:23:41,639
Speaker 1: by subscribing to the daily Bloomberg Surveillance podcast. Let's just

418
00:23:41,680 --> 00:23:44,720
Speaker 1: take a quick look at bitcoin as we continue to

419
00:23:44,760 --> 00:23:48,640
Speaker 1: follow the crypto crisis. It's down nine percent right now,

420
00:23:48,680 --> 00:23:52,800
Speaker 1: trading right around seventeen thousand, seven hundred. We'll get your

421
00:23:52,800 --> 00:23:55,919
Speaker 1: morning stop stories, local headlines, and the check of markets. Next.

422
00:23:56,000 --> 00:24:00,600
Speaker 1: First we check in with Bloomberg meteorologist Rob Caroline. Cloudy

423
00:24:00,680 --> 00:24:03,160
Speaker 1: skies across the Tri State area today. Rain will arrive

424
00:24:03,240 --> 00:24:06,119
Speaker 1: for the afternoon forty five. Well, and it may start

425
00:24:06,160 --> 00:24:07,760
Speaker 1: as a little bit of wet snow as sleep, but

426
00:24:07,840 --> 00:24:11,400
Speaker 1: quickly goes over to rain. Where rainy breezy Tonight forty five.

427
00:24:11,800 --> 00:24:16,040
Speaker 1: Rain Tomorrow breezy highs forty five to fifty, Sunshine Saturday

428
00:24:15,280 --> 00:24:18,760
Speaker 1: forty five. I pressure will produce sunshine Sunday highs thirty

429
00:24:18,800 --> 00:24:22,240
Speaker 1: five to forty. I'm Rob Carolin with your weekend forecast.

430
00:24:22,440 --> 00:24:29,359
Speaker 1: I'm Bloomberg eleven three oh broadcasting live from the Bloomberg

431
00:24:29,440 --> 00:24:33,920
Speaker 1: Interactive Broker's studio in New York, Bloomberg Elomon Free to Washington,

432
00:24:34,000 --> 00:24:37,320
Speaker 1: d C. Bloomberg ninety nine one to Boston, Bloomberg one

433
00:24:37,400 --> 00:24:40,520
Speaker 1: all six one to San Francisco Bloomberg n sixty to

434
00:24:40,600 --> 00:24:43,719
Speaker 1: the Country Sirius XM to A one nineteen and around

435
00:24:43,760 --> 00:24:47,679
Speaker 1: the globe the Bloomberg Business and Bloomberg Radio dot Com.

436
00:24:47,680 --> 00:24:56,520
Speaker 1: This is Bloomberg Daybreak. It's coming up on five thirty

437
00:24:56,560 --> 00:24:58,880
Speaker 1: on Wall Street. Good morning. I'm Nathan Hagar and I'm

438
00:24:58,960 --> 00:25:01,720
Speaker 1: Karen moscall and are just about four hours away from

439
00:25:01,760 --> 00:25:03,600
Speaker 1: the open of US trading. Let's yet you have to

440
00:25:03,680 --> 00:25:05,640
Speaker 1: data the news you need to know at this hour.

441
00:25:05,800 --> 00:25:08,800
Speaker 1: The sell off continues this morning after the Fed raised

442
00:25:08,840 --> 00:25:12,280
Speaker 1: interest race by another fifty basis points. At the same time,

443
00:25:12,320 --> 00:25:15,200
Speaker 1: Chairman J. Powell is dampening hopes for a pivot to

444
00:25:15,320 --> 00:25:18,840
Speaker 1: lower rates anytime soon. The inflation data received so far

445
00:25:18,920 --> 00:25:21,919
Speaker 1: from October and November show a welcome reduction in the

446
00:25:21,960 --> 00:25:26,320
Speaker 1: monthly pace of price increases, but it will take substantially

447
00:25:26,400 --> 00:25:29,560
Speaker 1: more evidence to give confidence that inflation is on a

448
00:25:29,640 --> 00:25:33,080
Speaker 1: sustained downward path. Chair Powell said the Fed will stay

449
00:25:33,119 --> 00:25:36,320
Speaker 1: the course until the job is done. Stock snapped at

450
00:25:36,359 --> 00:25:39,600
Speaker 1: two day winds streak Karen following those remarks from J. Paul,

451
00:25:39,720 --> 00:25:44,040
Speaker 1: Sylvia Jablonsky, CEO of Definance CTF, says for investors, FED

452
00:25:44,119 --> 00:25:46,960
Speaker 1: chair knocked the wind out of their sales. The market

453
00:25:46,960 --> 00:25:49,879
Speaker 1: I think was disappointed by the FED rhetoric because he

454
00:25:50,000 --> 00:25:52,600
Speaker 1: talked a lot about moving that terminal right up to

455
00:25:52,640 --> 00:25:56,160
Speaker 1: five point one per cent, but also downplaying the success

456
00:25:56,200 --> 00:25:58,600
Speaker 1: that we're already seeing on the impacts of the work

457
00:25:58,640 --> 00:26:02,359
Speaker 1: that they've done. Sylvia Jablonski with definan CTF, says she

458
00:26:02,480 --> 00:26:06,200
Speaker 1: was more optimistic about a Santa Claus rally before Powel's

459
00:26:06,200 --> 00:26:09,320
Speaker 1: news conference. Well, Nathan, we have more policy decisions on

460
00:26:09,400 --> 00:26:11,840
Speaker 1: the way. In Europe. The Bank of England is expected

461
00:26:11,880 --> 00:26:14,080
Speaker 1: to follow the FED with a half a point rate

462
00:26:14,160 --> 00:26:17,359
Speaker 1: hike this morning, as is the European Central Bank, and

463
00:26:17,359 --> 00:26:20,520
Speaker 1: in Switzerland, the Swiss National Bank also raised his benchmark

464
00:26:20,600 --> 00:26:23,479
Speaker 1: rate by fifty basis points. In Asia, Karen, we are

465
00:26:23,560 --> 00:26:27,640
Speaker 1: seeing some weak economic data. China's economy worse and last month,

466
00:26:27,680 --> 00:26:31,000
Speaker 1: and that was before Beijing dropped its COVID zero policy.

467
00:26:31,200 --> 00:26:34,920
Speaker 1: Retail sales in China contracted close to six percent over

468
00:26:34,960 --> 00:26:38,440
Speaker 1: the past year and industrial output missed estimates. But the

469
00:26:38,520 --> 00:26:42,200
Speaker 1: corporate news now, Nathan, where we're talking elon Musk yet again,

470
00:26:42,320 --> 00:26:44,879
Speaker 1: the new Twitter owner is selling more shares of Tesla,

471
00:26:45,200 --> 00:26:48,320
Speaker 1: and Bloomberg Steve Rappaport joins US Live with that story. Steve,

472
00:26:48,359 --> 00:26:51,639
Speaker 1: good Morning, Good Morning, Karen and Nathan Elon. Musk offloaded

473
00:26:51,680 --> 00:26:54,480
Speaker 1: three point five billion dollars in Tesla shares this week

474
00:26:54,600 --> 00:26:56,760
Speaker 1: has laid us sell off to raise cash for Twitter.

475
00:26:56,960 --> 00:27:00,840
Speaker 1: Tesla stock is down this year as invests grow concerned

476
00:27:00,880 --> 00:27:04,240
Speaker 1: about his purchase of the social media platform. The electric automakers,

477
00:27:04,320 --> 00:27:07,440
Speaker 1: valuation dropping below five hundred billion dollars for the first

478
00:27:07,480 --> 00:27:10,360
Speaker 1: time in more than two years. Tesla's troubles cost Musk

479
00:27:10,440 --> 00:27:12,960
Speaker 1: more than money. He also lost his title as the

480
00:27:13,080 --> 00:27:15,640
Speaker 1: richest person in the world. Live in New York. I'm

481
00:27:15,680 --> 00:27:19,119
Speaker 1: Steve Rappaport, Bloomberg Daybreak Now Steven. Tesla shares down another

482
00:27:19,160 --> 00:27:22,320
Speaker 1: two point eight percent in pre market trading this morning. Now.

483
00:27:22,359 --> 00:27:26,040
Speaker 1: A note on politics, Senator Elizabeth Warren's announced a bipartisan

484
00:27:26,040 --> 00:27:29,280
Speaker 1: bill into cracking down on cryptocurrencies used in money laundering.

485
00:27:29,480 --> 00:27:32,520
Speaker 1: If the bill passes into law, would require crypto exchanges

486
00:27:32,520 --> 00:27:37,280
Speaker 1: to verify customers identities as other financial institutions do, and

487
00:27:37,400 --> 00:27:40,639
Speaker 1: futures this morning are lower. SNP future is down forty

488
00:27:40,720 --> 00:27:43,960
Speaker 1: four points, down one point one percent, NASDAG, futures down

489
00:27:44,000 --> 00:27:46,160
Speaker 1: one at a third percent, down one hundred sixty one

490
00:27:46,200 --> 00:27:48,920
Speaker 1: points down, futures down eight tens of upper cent or

491
00:27:48,960 --> 00:27:51,640
Speaker 1: two hundred eighty seven points, and a ten year treasury

492
00:27:51,640 --> 00:27:53,760
Speaker 1: down to thirty seconds. You have three point four eight

493
00:27:53,800 --> 00:27:57,600
Speaker 1: percent straight ahead, your latest local headlines, plus a check

494
00:27:57,640 --> 00:28:04,119
Speaker 1: of sports, and this is Bloomberg. Thanks Karen A's five

495
00:28:04,200 --> 00:28:05,960
Speaker 1: thirty one on Wall Street. Amy Morris is here at

496
00:28:06,000 --> 00:28:08,080
Speaker 1: those local headlines for New York and a look at

497
00:28:08,119 --> 00:28:10,560
Speaker 1: what's going on around the world as well. Amy, Good morning,

498
00:28:11,040 --> 00:28:13,840
Speaker 1: Good morning Nathan. Investigators still trying to figure out what

499
00:28:14,040 --> 00:28:17,800
Speaker 1: sparked that major fire at an NYPD warehouse in Brooklyn,

500
00:28:17,800 --> 00:28:21,280
Speaker 1: and former NYPD chief Terry Monahan says they don't expect

501
00:28:21,440 --> 00:28:25,560
Speaker 1: anything to be salvage ale salvageable, but there are records

502
00:28:25,560 --> 00:28:29,199
Speaker 1: in place. Everything to be documented in databases. At least

503
00:28:29,640 --> 00:28:32,959
Speaker 1: what the evidence showed should be documented somewhere. It's just

504
00:28:33,040 --> 00:28:35,600
Speaker 1: that physical evidence that will be going cruse continue to

505
00:28:35,600 --> 00:28:37,800
Speaker 1: look for hotspots. More than a day after the raging

506
00:28:37,840 --> 00:28:42,280
Speaker 1: fire destroyed Biological evidence Department vehicles and hundreds of confiscated

507
00:28:42,360 --> 00:28:45,480
Speaker 1: e bikes. Uber drivers in New York will not be

508
00:28:45,560 --> 00:28:48,440
Speaker 1: getting higher pay, at least not yet. A judge has

509
00:28:48,480 --> 00:28:51,400
Speaker 1: blocked the Taxi and Limousine Commission from raising the pay

510
00:28:51,440 --> 00:28:54,680
Speaker 1: of ridehailed drivers, while a lawsuit by Uber is pending.

511
00:28:54,960 --> 00:28:57,080
Speaker 1: Uber argues the pay raise would have forced them to

512
00:28:57,160 --> 00:29:00,560
Speaker 1: raise fairs. Driver advocates tell The New York Times they're

513
00:29:00,680 --> 00:29:04,560
Speaker 1: stunned the court would temporarily block those races. New Jersey

514
00:29:04,560 --> 00:29:08,560
Speaker 1: Transit officials developing a no ride list of violent passengers

515
00:29:08,560 --> 00:29:12,200
Speaker 1: who assault transit workers. A year ago, passengers who assaulted

516
00:29:12,200 --> 00:29:15,360
Speaker 1: employees would face a steep fine, but now the agency

517
00:29:15,400 --> 00:29:18,520
Speaker 1: is working on a policy that would ban disorderly writers

518
00:29:18,520 --> 00:29:21,440
Speaker 1: from the transit system, including a permanent band for any

519
00:29:21,480 --> 00:29:25,120
Speaker 1: passengers who use a deadly weapon. The House has passed

520
00:29:25,120 --> 00:29:27,640
Speaker 1: a short term government funding bill to push a government

521
00:29:27,680 --> 00:29:30,840
Speaker 1: shutdown deadline back a week. On this vote, the yea's

522
00:29:30,880 --> 00:29:33,320
Speaker 1: are two hundred and twenty four and the nays are

523
00:29:33,320 --> 00:29:36,960
Speaker 1: two hundred and one. The motion is adopted. It funds

524
00:29:36,960 --> 00:29:39,400
Speaker 1: the government for one more week. The short term bill

525
00:29:39,440 --> 00:29:41,920
Speaker 1: now goes to the Senate. The FDA says there's a

526
00:29:41,960 --> 00:29:45,840
Speaker 1: nationwide shortage of amoxicillin the popular antibiotic is in high

527
00:29:45,840 --> 00:29:49,600
Speaker 1: demand because of more respiratory viruses in the US. Officials

528
00:29:49,600 --> 00:29:52,400
Speaker 1: say part of the problem drug companies rely on other

529
00:29:52,440 --> 00:29:55,960
Speaker 1: countries to get the ingredients, and they've been facing supply

530
00:29:56,120 --> 00:29:59,240
Speaker 1: chain issues. Global News twenty four hours a day on

531
00:29:59,320 --> 00:30:01,680
Speaker 1: air and on bloom A Quick Take, powered by more

532
00:30:01,680 --> 00:30:04,520
Speaker 1: than twenty seven hundred journalists and analysts and more than

533
00:30:04,600 --> 00:30:08,520
Speaker 1: one hundred twenty countries. I'm Amy Morris. This is Bloomberg. Nathan.

534
00:30:08,720 --> 00:30:15,440
Speaker 1: Thanks Amy. By thirty three on Wall Street time for

535
00:30:15,440 --> 00:30:17,520
Speaker 1: the Bloomberg Sports Update, brought to you by Try State.

536
00:30:17,520 --> 00:30:19,680
Speaker 1: Don't he Here's John stash Our. All right, Nathan, slow

537
00:30:19,720 --> 00:30:21,959
Speaker 1: start to the next season, but coming on now in

538
00:30:22,120 --> 00:30:24,320
Speaker 1: Chicago looking for a fifth win in a row. The

539
00:30:24,400 --> 00:30:28,440
Speaker 1: game went to overtown Brunts at high left against Carusoe.

540
00:30:28,560 --> 00:30:34,240
Speaker 1: Certainly to the quarter crossover ncle breaker three sail brunt

541
00:30:34,280 --> 00:30:38,000
Speaker 1: ship Clupsnixs up by nine with twenty seven point nine

542
00:30:38,000 --> 00:30:41,240
Speaker 1: ago in overtime and that should be it. In the

543
00:30:41,280 --> 00:30:43,920
Speaker 1: Windy City Wow esp in New York next beat the

544
00:30:43,920 --> 00:30:48,320
Speaker 1: Bulls one point for Julius Randall and Bronson scored thirty

545
00:30:48,760 --> 00:30:50,560
Speaker 1: r J. Barrett and at twenty two. Nixt are the

546
00:30:50,560 --> 00:30:52,720
Speaker 1: worst three point shooting team in the NBA, and yet

547
00:30:52,800 --> 00:30:55,640
Speaker 1: last night they made eighteen and thirty four. Three are

548
00:30:55,720 --> 00:30:58,040
Speaker 1: up to sixth place in the East as they oddly

549
00:30:58,520 --> 00:31:01,600
Speaker 1: play the Bulls again tomorrow sorrow, also in Chicago, the

550
00:31:01,720 --> 00:31:03,440
Speaker 1: night after the Knicks one their fifth in a row,

551
00:31:03,840 --> 00:31:06,360
Speaker 1: Rangers will try to do likewise. They host Toronto Devils

552
00:31:06,360 --> 00:31:08,680
Speaker 1: try to end the three game losing streak. They host

553
00:31:08,760 --> 00:31:12,440
Speaker 1: Philadelphia NFL tonight forty Niners in Seattle. Niners have won

554
00:31:12,520 --> 00:31:15,880
Speaker 1: six straight win tonight clinches them. The NFC West Jets

555
00:31:15,880 --> 00:31:18,600
Speaker 1: have made a change in their quarterback death charg Zack Wilson,

556
00:31:18,600 --> 00:31:20,480
Speaker 1: who went from first string all the way down to

557
00:31:20,600 --> 00:31:22,880
Speaker 1: third is now at least up the second string, ahead

558
00:31:22,880 --> 00:31:25,840
Speaker 1: of Joe Flacco, but still behind Mike White. Will leave

559
00:31:25,840 --> 00:31:27,800
Speaker 1: the Jets into a home game Sunday with Detroit. The

560
00:31:27,840 --> 00:31:31,680
Speaker 1: Giants played the primetime game in Washington, the Commanders playing well,

561
00:31:31,680 --> 00:31:35,480
Speaker 1: desplaite all the turmoil surrounding their owner, Dan Snyder. Washington

562
00:31:35,560 --> 00:31:39,680
Speaker 1: Post reports Snyder is moving forward with receiving offers from

563
00:31:39,720 --> 00:31:42,120
Speaker 1: those interested in buying the team from him. At the

564
00:31:42,160 --> 00:31:47,080
Speaker 1: World Cup, France ended Morocco Cinderella Laurn, Sunday's Final France

565
00:31:47,120 --> 00:31:51,400
Speaker 1: against Argentina, Johns Dash Award, Bloombrook Sports, Nathan FRONTI BUYOUTI

566
00:31:51,440 --> 00:31:53,440
Speaker 1: don't let someone else drive off in the outie model

567
00:31:53,440 --> 00:31:55,800
Speaker 1: you've always wanted. Visit your local Tri State outie dealer

568
00:31:55,840 --> 00:31:57,680
Speaker 1: to get behind the wheel of yours today, or visit

569
00:31:57,680 --> 00:32:03,000
Speaker 1: outie Offers dot com for more information on Wall Street

570
00:32:03,040 --> 00:32:05,200
Speaker 1: time for the Tri State Business Report. For that, we

571
00:32:05,240 --> 00:32:08,760
Speaker 1: turned to bloombergs ed Cory. New York's high taxes may

572
00:32:08,800 --> 00:32:11,960
Speaker 1: already be pushing wealthy residents out of the city. That's

573
00:32:11,960 --> 00:32:15,840
Speaker 1: according to Controller Thomas den Napoli, and analysis by New

574
00:32:15,960 --> 00:32:19,440
Speaker 1: York City's Independent Budget Office shows the number of city

575
00:32:19,480 --> 00:32:23,320
Speaker 1: taxpayers who earned between one million and five million dollars

576
00:32:23,360 --> 00:32:27,080
Speaker 1: fell eleven percent in two thousand twenty. New York City's

577
00:32:27,160 --> 00:32:31,040
Speaker 1: business districts would get a makeover under a plan unveiled Wednesday.

578
00:32:31,480 --> 00:32:35,120
Speaker 1: The New New York Panel recommends converting office space to

579
00:32:35,200 --> 00:32:39,760
Speaker 1: residential areas, making outdoor dining permanent, and improving transit. Governor

580
00:32:39,840 --> 00:32:43,240
Speaker 1: Kathy Hokel and Mayor Eric Adams launched the committee seven

581
00:32:43,240 --> 00:32:47,360
Speaker 1: months ago. Complaints about helicopter noise in New York City,

582
00:32:47,440 --> 00:32:51,400
Speaker 1: or up exponentially from about thirty three hundred and nineteen

583
00:32:51,600 --> 00:32:55,520
Speaker 1: to almost twenty six thousand last year in Manhattan, and

584
00:32:55,720 --> 00:32:59,840
Speaker 1: Queen's complaints about helicopter noise this year have outnumbered those

585
00:33:00,040 --> 00:33:03,560
Speaker 1: about rats that your Bloomberg Dry State business report. I'm

586
00:33:03,560 --> 00:33:07,000
Speaker 1: in Corey, Thanks that it's six on Wall Street. The

587
00:33:07,040 --> 00:33:11,120
Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was

588
00:33:11,160 --> 00:33:14,560
Speaker 1: written by the Bloomberg Editorial Board. In announcing plans to

589
00:33:14,680 --> 00:33:19,520
Speaker 1: massively increase defense spending, Japan has embarked on a military transformation.

590
00:33:19,880 --> 00:33:23,360
Speaker 1: The budget increases proposed by Prime Minister Fumio Kashita last

591
00:33:23,400 --> 00:33:27,960
Speaker 1: week would provide Japan's self defense forces with unprecedented resources

592
00:33:28,000 --> 00:33:32,000
Speaker 1: around forty three trillion yen or billion dollars over the

593
00:33:32,000 --> 00:33:35,600
Speaker 1: next five years. Given rising security challenges in the Pacific,

594
00:33:35,880 --> 00:33:39,120
Speaker 1: Japan's ambition is bold and welcome. For the new spending

595
00:33:39,160 --> 00:33:41,760
Speaker 1: to be truly effective, though the government will need to

596
00:33:41,800 --> 00:33:46,360
Speaker 1: make hard choices. While flashy weapons systems have appeal, purchases

597
00:33:46,400 --> 00:33:49,320
Speaker 1: of emerging, low cost technologies would allow the military to

598
00:33:49,320 --> 00:33:52,680
Speaker 1: get more bang for its yen. Maintaining military spending at

599
00:33:52,680 --> 00:33:56,240
Speaker 1: this level will likely require higher taxes and painful spending cuts.

600
00:33:56,520 --> 00:33:59,280
Speaker 1: The government must be able to assure citizens their money

601
00:33:59,360 --> 00:34:02,240
Speaker 1: is being spent wisely. This editorial was written by the

602
00:34:02,280 --> 00:34:05,840
Speaker 1: Bloomberg Editorial Board. For more Bloomberg opinion, please go to

603
00:34:05,840 --> 00:34:08,600
Speaker 1: Bloomberg dot com slash opinion or O P I n

604
00:34:08,719 --> 00:34:12,240
Speaker 1: go on the Bloomberg terminal. This has been Bloomberg opinion,

605
00:34:12,440 --> 00:34:15,560
Speaker 1: and you can hear Bloomberg opinion editorials every weekday at

606
00:34:15,560 --> 00:34:18,800
Speaker 1: this time. Terminal customers can read more at O P

607
00:34:19,000 --> 00:34:20,920
Speaker 1: I n go. It looks like we could be in

608
00:34:20,960 --> 00:34:24,319
Speaker 1: line for more selling on Wall Street today after the

609
00:34:24,400 --> 00:34:27,520
Speaker 1: Fed decision and the hawkish tone from Chairman Powell. We

610
00:34:27,560 --> 00:34:30,800
Speaker 1: have SMP futures right now down forty two points, a

611
00:34:30,880 --> 00:34:33,040
Speaker 1: drop of one percent. Down futures are lower by two

612
00:34:33,080 --> 00:34:36,400
Speaker 1: hundred sixty nine points. In NASDAC futures down one point

613
00:34:36,400 --> 00:34:39,240
Speaker 1: three percent, a drop of one hundred fifty six points.

614
00:34:39,239 --> 00:34:42,359
Speaker 1: Tenure Treasury is down one thirty second yeld three point

615
00:34:42,520 --> 00:34:44,400
Speaker 1: eight percent, yield on the two year four point to

616
00:34:44,640 --> 00:34:48,000
Speaker 1: four Nimex crudes down to tenth percent at seventy seven

617
00:34:48,080 --> 00:34:51,520
Speaker 1: dollars seventeen cents a barrel. We're gonna get more reaction

618
00:34:51,640 --> 00:34:55,480
Speaker 1: to the FED decision next, with Wells Fargo senior economist

619
00:34:55,600 --> 00:35:03,279
Speaker 1: Sarah House joining US Live. This is Bloomberg Markets, headlines

620
00:35:03,320 --> 00:35:06,239
Speaker 1: and breaking news twenty four hours a day at Bloomberg

621
00:35:06,320 --> 00:35:09,720
Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg Quick Tape.

622
00:35:09,880 --> 00:35:18,800
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow

623
00:35:18,840 --> 00:35:22,000
Speaker 1: and US Dock Index futures and European shares are lower

624
00:35:22,080 --> 00:35:25,200
Speaker 1: this morning after the Federal Reserve rebuffed expectations for a

625
00:35:25,280 --> 00:35:28,160
Speaker 1: devilish Tilton said interest rates will go higher for longer.

626
00:35:28,520 --> 00:35:31,040
Speaker 1: Check the markets all day long here on Bloomberg radios

627
00:35:31,080 --> 00:35:34,000
Speaker 1: and P futures down forty points. That's down one percent.

628
00:35:34,080 --> 00:35:36,160
Speaker 1: Down future is down three quarters of a percent, or

629
00:35:36,160 --> 00:35:38,839
Speaker 1: two hundred fifty nine points, and as the futures down

630
00:35:38,880 --> 00:35:41,480
Speaker 1: one hundred fifty five points or one point three percent.

631
00:35:41,840 --> 00:35:44,080
Speaker 1: The decks in Germany's down one point two percent. The

632
00:35:44,080 --> 00:35:46,480
Speaker 1: ten year treasury down one thirty second. You have three

633
00:35:46,520 --> 00:35:48,719
Speaker 1: point eight percent. They yield on the two year four

634
00:35:48,760 --> 00:35:51,920
Speaker 1: point to three percent. Nine mack screwed oil little change

635
00:35:51,920 --> 00:35:54,520
Speaker 1: at seventy seven dollars twenty two cents of Barrel. Comic

636
00:35:54,600 --> 00:35:57,160
Speaker 1: School down one point seven percent down thirty dollars twenty

637
00:35:57,160 --> 00:36:01,120
Speaker 1: cents fifty announced the year one point oh six two

638
00:36:01,200 --> 00:36:04,080
Speaker 1: zero against the dollar and the yen one thirty six

639
00:36:04,120 --> 00:36:06,680
Speaker 1: point seven four. And that's a Bloomberg business flash. Now

640
00:36:06,719 --> 00:36:09,000
Speaker 1: here's Amy Morris with Moore on what's going on around

641
00:36:09,000 --> 00:36:11,960
Speaker 1: the world. Amy think you, Karen. The Senate wants to

642
00:36:12,040 --> 00:36:15,600
Speaker 1: ban the use of TikTok on government phones and devices.

643
00:36:15,680 --> 00:36:18,440
Speaker 1: The bill was passed with no objections last night. Still

644
00:36:18,480 --> 00:36:20,560
Speaker 1: needs to be passed by the House and signed by

645
00:36:20,600 --> 00:36:23,560
Speaker 1: President Biden. Chances are demming that Congress will be able

646
00:36:23,600 --> 00:36:25,880
Speaker 1: to take up a multibillion dollar package to renew a

647
00:36:25,920 --> 00:36:29,360
Speaker 1: cluster of business tax breaks and provide a more generous

648
00:36:29,480 --> 00:36:33,560
Speaker 1: child tax credit before lawmakers leave for the holidays. In sports,

649
00:36:33,560 --> 00:36:36,680
Speaker 1: in the NBA, the Wizards and Warriors lose, the Knicks win.

650
00:36:37,120 --> 00:36:40,120
Speaker 1: The World Cup Final is set for Sunday, Argentina. Taken

651
00:36:40,120 --> 00:36:42,719
Speaker 1: on France Global News twenty four hours a day on

652
00:36:42,800 --> 00:36:45,319
Speaker 1: air and on Bloomberg Quick Take, powered by more than

653
00:36:45,400 --> 00:36:48,200
Speaker 1: twenty hundred journalists and analysts and more than one hundred

654
00:36:48,239 --> 00:36:51,799
Speaker 1: twenty countries. I'm anymore, is this is Bloomberg? Nathan all Right?

655
00:36:51,840 --> 00:36:54,520
Speaker 1: Amy thanks for coming up to two on Wall Street.

656
00:36:54,560 --> 00:36:57,360
Speaker 1: You're listening to Bloomberg Daybreak. Good morning, I'm Nathan Hagar

657
00:36:57,400 --> 00:37:00,200
Speaker 1: alongside Karen Moscow. Let's take a look at some of

658
00:37:00,200 --> 00:37:03,320
Speaker 1: the other stories making news this morning. While the focus

659
00:37:03,400 --> 00:37:05,960
Speaker 1: has been on central banks, we do get a key

660
00:37:06,000 --> 00:37:10,920
Speaker 1: economic report today. The government issues November retail sales figures

661
00:37:10,960 --> 00:37:14,399
Speaker 1: this morning, and economists predict a decline, a reversal from

662
00:37:14,440 --> 00:37:19,280
Speaker 1: October's advance. Bloomberg's Benny Delve Judas reports across America retail

663
00:37:19,360 --> 00:37:22,520
Speaker 1: sales have been on a sea saw since midyear. October

664
00:37:22,520 --> 00:37:26,320
Speaker 1: sow the biggest game since February. November data could disappoint,

665
00:37:26,320 --> 00:37:29,440
Speaker 1: reflecting on part weaker sales at car lots and restaurants.

666
00:37:29,719 --> 00:37:34,280
Speaker 1: Lower gasoline prices could also subtract. Even so, Bloomberg Economics

667
00:37:34,400 --> 00:37:37,600
Speaker 1: is bargain hunting in an ear of high inflation. Probably

668
00:37:37,640 --> 00:37:41,280
Speaker 1: helped on Black Friday, traditional start of the US holiday

669
00:37:41,280 --> 00:37:45,239
Speaker 1: shopping season. Finny Delt, Judas, Bloomberg debris Right, Vinnie, thank you.

670
00:37:45,280 --> 00:37:47,640
Speaker 1: So let's turn from the economy to the video game

671
00:37:47,680 --> 00:37:51,759
Speaker 1: industry now. Microsoft said that antitrust regulators shrugged off its

672
00:37:51,800 --> 00:37:54,600
Speaker 1: offer to make call of duty available to gaming rivals,

673
00:37:54,640 --> 00:37:57,600
Speaker 1: including Sony, as part of its sixty nine billion dollar

674
00:37:57,640 --> 00:38:01,080
Speaker 1: purchase of Activision Blizzard. They caught up with Microsoft president

675
00:38:01,080 --> 00:38:04,280
Speaker 1: Brad Smith to get more details. All of these concerns

676
00:38:04,280 --> 00:38:07,640
Speaker 1: have basically focused on one title, a great title, a

677
00:38:07,640 --> 00:38:11,360
Speaker 1: game Call of Duty. But we've said we're prepared to

678
00:38:11,400 --> 00:38:15,680
Speaker 1: commit contractually. We're prepared to commit under a consent to

679
00:38:15,800 --> 00:38:19,640
Speaker 1: career and undertaking that that will be available for Sony

680
00:38:19,880 --> 00:38:23,880
Speaker 1: on comparable terms to Xbox for the next decade. So

681
00:38:24,040 --> 00:38:26,239
Speaker 1: I look at this and say, this will be good

682
00:38:26,239 --> 00:38:29,120
Speaker 1: for competition, and we have a solution to the one

683
00:38:29,239 --> 00:38:33,480
Speaker 1: problem that seems to bother people the most. Microsoft President

684
00:38:33,480 --> 00:38:37,000
Speaker 1: Brad Smith says the company needs regulatory approval in sixteen

685
00:38:37,040 --> 00:38:40,720
Speaker 1: countries for the Activision deal to go through. While staying

686
00:38:40,719 --> 00:38:43,800
Speaker 1: in the tech space, now we're seeing another policy change

687
00:38:43,880 --> 00:38:47,279
Speaker 1: at Twitter. The company has now suspended several accounts that

688
00:38:47,400 --> 00:38:51,080
Speaker 1: tracked private chats, and Bloomberg said Baxter has that story.

689
00:38:51,160 --> 00:38:53,879
Speaker 1: This is just another turn and what Elon Musk says

690
00:38:54,040 --> 00:38:57,319
Speaker 1: will be an open platform. The first account to go

691
00:38:57,560 --> 00:39:00,800
Speaker 1: was the ellen jet page run by Jack Sweeney. It

692
00:39:00,960 --> 00:39:04,719
Speaker 1: tracks Musk's private jet. Musk had said last month that

693
00:39:04,719 --> 00:39:07,480
Speaker 1: he would not ban the account, saying it was evidence

694
00:39:07,520 --> 00:39:11,799
Speaker 1: to his commitment to free speech. Well, now he has

695
00:39:11,880 --> 00:39:15,680
Speaker 1: dumped all thirty Twitter accounts that Sweeney managers, including his

696
00:39:15,719 --> 00:39:20,200
Speaker 1: personal account, saying that they violate Twitter policy. Sweeney's last

697
00:39:20,200 --> 00:39:23,440
Speaker 1: tweet was can I get my eight dollars back in

698
00:39:23,520 --> 00:39:27,920
Speaker 1: San Francisco? I'm at Baxter Bloomberg daybreak. Oh wow, thank

699
00:39:27,960 --> 00:39:31,439
Speaker 1: you Ed for that. Let's turn back to the economy now.

700
00:39:31,480 --> 00:39:35,920
Speaker 1: Our top story this morning. The hawkish slow down Federal

701
00:39:35,960 --> 00:39:40,000
Speaker 1: Reserve did raise interest rates another fifty basis points. That

702
00:39:40,160 --> 00:39:44,600
Speaker 1: was widely expected following four straight seventy five point moves.

703
00:39:45,080 --> 00:39:48,000
Speaker 1: But Chair J. Powell is making clear that the central

704
00:39:48,000 --> 00:39:52,760
Speaker 1: banks fight against historically high inflation is not over. Restoring

705
00:39:52,800 --> 00:39:55,520
Speaker 1: price stability is essential to set the stage for achieving

706
00:39:55,560 --> 00:40:00,560
Speaker 1: maximum employment and stable prices over the long run. The

707
00:40:00,560 --> 00:40:05,680
Speaker 1: historical record cautions strongly against prematurely loosening policy. We will

708
00:40:05,680 --> 00:40:09,640
Speaker 1: stay the course until the job is done, Chairman Powell,

709
00:40:09,680 --> 00:40:12,880
Speaker 1: speaking there at his post decision news conference yesterday. We

710
00:40:12,960 --> 00:40:17,000
Speaker 1: get more reaction live this morning by Sarah House, senior

711
00:40:17,040 --> 00:40:22,160
Speaker 1: economist at Wells Fargo. Is this message being received by

712
00:40:22,239 --> 00:40:25,920
Speaker 1: this market? Sarah? It doesn't appear to be so, or

713
00:40:25,960 --> 00:40:28,879
Speaker 1: at least I think there's some doubts on either the

714
00:40:28,880 --> 00:40:32,359
Speaker 1: side willingness to follow through or whether the economy can

715
00:40:32,440 --> 00:40:35,680
Speaker 1: withstand three HIGs at the side is still signaling that

716
00:40:35,880 --> 00:40:39,239
Speaker 1: our arcticn So you know, we didn't see necessarily see

717
00:40:39,239 --> 00:40:42,440
Speaker 1: the reaction in the direction that we would have expected

718
00:40:42,440 --> 00:40:46,479
Speaker 1: based on this more hawkish outlook. So I think there's

719
00:40:46,520 --> 00:40:50,840
Speaker 1: there's still some communication there to be done. Is sorry,

720
00:40:51,000 --> 00:40:55,480
Speaker 1: are you surprised at how hawkish? Uh? This fed continues

721
00:40:55,560 --> 00:40:59,319
Speaker 1: to be? Should it continue to be this hawkish? We

722
00:40:59,320 --> 00:41:01,719
Speaker 1: weren't really sup right, So our forecast heading into this

723
00:41:01,800 --> 00:41:05,000
Speaker 1: meeting was that we'd see the said funds rate rise

724
00:41:05,080 --> 00:41:08,440
Speaker 1: to that range of five five quarter percent that was

725
00:41:08,560 --> 00:41:10,440
Speaker 1: where the median doubt was for next year, and then

726
00:41:10,480 --> 00:41:12,960
Speaker 1: it would stay there all all through the year. So really,

727
00:41:12,960 --> 00:41:15,760
Speaker 1: when you look at the rhetoric from both the statement

728
00:41:15,800 --> 00:41:20,160
Speaker 1: there was essentially just one word changed, but also Pal's

729
00:41:20,200 --> 00:41:22,640
Speaker 1: opening remarks and even the sentiment in the press conference,

730
00:41:22,680 --> 00:41:24,879
Speaker 1: it was a little different than what he and other

731
00:41:24,880 --> 00:41:28,839
Speaker 1: side officials have been stressing. So inflation is still far

732
00:41:28,880 --> 00:41:30,960
Speaker 1: too high and they are going to going to stay

733
00:41:31,000 --> 00:41:34,040
Speaker 1: at it until the job is done, and so I

734
00:41:34,080 --> 00:41:36,759
Speaker 1: think the side was signaling even as there they were

735
00:41:37,000 --> 00:41:39,920
Speaker 1: step preparing to just step down a little bit, that

736
00:41:40,000 --> 00:41:41,880
Speaker 1: they were by no means done. So it's not just

737
00:41:41,920 --> 00:41:44,960
Speaker 1: about the pace of policy tightening, but it's the eventual

738
00:41:44,960 --> 00:41:47,640
Speaker 1: height at which the said funds reaches and how long

739
00:41:47,680 --> 00:41:51,000
Speaker 1: it stays there. Yeah, one of the big data or

740
00:41:51,120 --> 00:41:54,360
Speaker 1: one of the big messages that Chairman Palpi out yesterday

741
00:41:54,480 --> 00:41:59,960
Speaker 1: was there's a greater risk historically from undertightening than from overtighten.

742
00:42:00,080 --> 00:42:01,480
Speaker 1: Names do you think that's the right way for this

743
00:42:01,560 --> 00:42:05,719
Speaker 1: Fed to go? So? I think given that you do

744
00:42:05,880 --> 00:42:08,879
Speaker 1: need that price stability for that long run sustainable health

745
00:42:08,960 --> 00:42:11,479
Speaker 1: of the labor market, and the fact that the Fed

746
00:42:11,520 --> 00:42:13,719
Speaker 1: has raised rags highs they have that does get them

747
00:42:13,800 --> 00:42:17,480
Speaker 1: room to Christian if they if they do overtighten. I

748
00:42:17,520 --> 00:42:20,759
Speaker 1: think that supports their their view in that case. But

749
00:42:20,800 --> 00:42:22,960
Speaker 1: I think part of this just comes from the FED

750
00:42:23,200 --> 00:42:27,799
Speaker 1: miss on on the upside. So they got inflation wrong, um,

751
00:42:27,840 --> 00:42:30,319
Speaker 1: thinking that it wouldn't be that that it wouldn't get

752
00:42:30,320 --> 00:42:32,480
Speaker 1: as high as it has, and so they want to

753
00:42:32,480 --> 00:42:35,799
Speaker 1: be garden sure that they don't that they're not too

754
00:42:35,800 --> 00:42:38,520
Speaker 1: optimistic again on inflation and that it's going to come

755
00:42:38,520 --> 00:42:43,040
Speaker 1: back to two percent in pretty pretty easy or short order. Well,

756
00:42:43,040 --> 00:42:45,960
Speaker 1: you've given that they FED got inflation wrong. What's the

757
00:42:46,080 --> 00:42:49,120
Speaker 1: risk in your view that the FED gets policy wrong

758
00:42:49,400 --> 00:42:53,440
Speaker 1: and goes too far with these interest rate hikes? And

759
00:42:53,440 --> 00:42:55,719
Speaker 1: they're in a tough spot. So we know that monetary

760
00:42:55,800 --> 00:42:58,560
Speaker 1: policy not only does it have those one variable lags,

761
00:42:58,600 --> 00:43:02,080
Speaker 1: but ultimately it's a blend instrument, and so it's it's

762
00:43:02,080 --> 00:43:04,239
Speaker 1: hard to fine tune. But they are getting to that

763
00:43:04,320 --> 00:43:07,279
Speaker 1: stage where this past year it was all about catch up,

764
00:43:07,320 --> 00:43:09,720
Speaker 1: so it was clear that policy needs to be tighter

765
00:43:09,760 --> 00:43:12,560
Speaker 1: and that the labor market could withstand it. But this

766
00:43:12,640 --> 00:43:15,080
Speaker 1: year is certainly going to be This upcoming year is

767
00:43:15,080 --> 00:43:17,680
Speaker 1: certainly going to be more difficult as they do get

768
00:43:17,719 --> 00:43:21,279
Speaker 1: into that fine tuning aspect. But that's hard to do

769
00:43:21,320 --> 00:43:23,319
Speaker 1: with with such a blunt tool. So I think they're

770
00:43:23,320 --> 00:43:27,480
Speaker 1: recognizing that the risks of a downturn have increased. You

771
00:43:27,520 --> 00:43:31,239
Speaker 1: saw that with the GDP projections coming down pretty noticeably

772
00:43:31,320 --> 00:43:34,600
Speaker 1: and the unemployment rate numbers ticking up a little bit

773
00:43:34,640 --> 00:43:38,240
Speaker 1: more and coming in you know, full percentage point above

774
00:43:38,239 --> 00:43:41,239
Speaker 1: the low of the cycle that we've seen, which if

775
00:43:41,680 --> 00:43:44,520
Speaker 1: historical we've never seen outside of recession, so I think

776
00:43:44,600 --> 00:43:47,839
Speaker 1: you know, implicitly they are acknowledging how difficult it will be,

777
00:43:47,880 --> 00:43:51,040
Speaker 1: but they are willing to withstand that downturn if it

778
00:43:51,160 --> 00:43:54,200
Speaker 1: means a story and price stability. Only about thirty seconds

779
00:43:54,239 --> 00:43:57,480
Speaker 1: left here, Sarah, but we've got more data for the

780
00:43:57,520 --> 00:44:00,560
Speaker 1: state of dependent FED. What's your expectation for re tell sales?

781
00:44:01,880 --> 00:44:04,520
Speaker 1: So we actually think we'll see a slight increase in

782
00:44:05,040 --> 00:44:07,520
Speaker 1: UM in the retail sales number, at least on the headline,

783
00:44:07,560 --> 00:44:10,440
Speaker 1: but um, we have to acknowledge that this is a

784
00:44:10,440 --> 00:44:14,480
Speaker 1: really volatile series. So watch the revision because that'll that

785
00:44:14,920 --> 00:44:17,920
Speaker 1: will give us a picture of not just a November

786
00:44:18,000 --> 00:44:20,919
Speaker 1: sales but also firma flitting on on where we've been.

787
00:44:21,000 --> 00:44:23,239
Speaker 1: But you know, we're still in a period of you know,

788
00:44:23,280 --> 00:44:26,360
Speaker 1: pretty strong, pretty strong price growth and also consumers that

789
00:44:26,400 --> 00:44:28,440
Speaker 1: are still very much willing to go out there and

790
00:44:28,480 --> 00:44:31,719
Speaker 1: spend what that'll be interesting at the consensus on the

791
00:44:31,719 --> 00:44:35,080
Speaker 1: Bloomberg terminal showing a decline in month over month retail sales.

792
00:44:35,120 --> 00:44:37,360
Speaker 1: Thanks for this, Sarah, great getting your thoughts this morning.

793
00:44:37,400 --> 00:44:41,279
Speaker 1: Sarah House, senior economist at Wells Fargo, joining us live

794
00:44:41,360 --> 00:44:44,319
Speaker 1: this morning. Following that fifty basis point decision from the

795
00:44:44,360 --> 00:44:48,399
Speaker 1: Federal Reserve and the hawkish town from Chairman Pal. It's

796
00:44:48,440 --> 00:44:50,919
Speaker 1: moving markets even lower once again this morning, with SMP

797
00:44:51,080 --> 00:44:54,080
Speaker 1: futures down forty point, STAFLE futures down two hundred forty nine,

798
00:44:54,080 --> 00:44:56,120
Speaker 1: and NASTAC futures low. We're right now by a hundred

799
00:44:56,280 --> 00:45:04,000
Speaker 1: fifty six points. This is Bloomberg Markets headlines and breaking

800
00:45:04,000 --> 00:45:06,919
Speaker 1: news twenty four hours a day at Bloomberg dot com,

801
00:45:07,040 --> 00:45:10,560
Speaker 1: the Bloomberg Business Atland at Bloomberg Quick Tape. This is

802
00:45:10,600 --> 00:45:19,080
Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow and that's

803
00:45:19,120 --> 00:45:22,160
Speaker 1: updates brought to you by SEI. Built on advanced technologies

804
00:45:22,200 --> 00:45:25,239
Speaker 1: and fifty years of innovation. SEI offers asset Managers, a

805
00:45:25,360 --> 00:45:30,320
Speaker 1: comprehensive and flexible operations outsourcing platform. Go to s C

806
00:45:30,480 --> 00:45:34,520
Speaker 1: i C dot com. Slash managers and futures are following

807
00:45:34,600 --> 00:45:37,440
Speaker 1: this morning after the Federal Reserve interest rate decision. To

808
00:45:37,600 --> 00:45:40,280
Speaker 1: check the markets all day long here on Bloomberg Radio.

809
00:45:40,360 --> 00:45:42,919
Speaker 1: S and P futures down forty points this morning, down

810
00:45:43,239 --> 00:45:45,840
Speaker 1: a one percent. DAL futures are down seven tenths of

811
00:45:45,920 --> 00:45:48,640
Speaker 1: upper cent or two hundred forty seven points and NASDAC

812
00:45:48,680 --> 00:45:51,040
Speaker 1: futures down one at a third percent or one fifty

813
00:45:51,120 --> 00:45:54,520
Speaker 1: nine points. The decks in Germany's down one point two percent. Ten,

814
00:45:54,600 --> 00:45:56,879
Speaker 1: Your treasury down three thirty seconds, you know, three point

815
00:45:56,880 --> 00:45:59,239
Speaker 1: four eight percent. They yield on the two year four

816
00:45:59,280 --> 00:46:02,040
Speaker 1: point to four percent. Nine X screwed oil on the

817
00:46:02,160 --> 00:46:04,720
Speaker 1: rise up to ten percent or sixteen cents at seventy

818
00:46:04,760 --> 00:46:07,680
Speaker 1: seven dollars, forty four cents a barrel. COMEXS goal down

819
00:46:07,760 --> 00:46:10,400
Speaker 1: one point seven percent, down thirty dollars sixty cents at

820
00:46:10,440 --> 00:46:13,480
Speaker 1: seventeen eighty eight ten announced. The euro is at one

821
00:46:13,520 --> 00:46:16,640
Speaker 1: point oh six one nine against the dollar. British pound

822
00:46:16,640 --> 00:46:19,400
Speaker 1: one point to three is three three, the yen has

823
00:46:19,440 --> 00:46:22,680
Speaker 1: at one thirties six point seven four and Bitcoin this

824
00:46:22,760 --> 00:46:25,760
Speaker 1: morning is down nine ten percent at a seventeen thousand,

825
00:46:26,040 --> 00:46:30,280
Speaker 1: six hundred seventy dollars. And that's a Bloomberg business flash. Nathan,

826
00:46:30,600 --> 00:46:33,000
Speaker 1: all right, Karen, thank you. It's five fifty six on

827
00:46:33,080 --> 00:46:35,560
Speaker 1: Wall Street. It's time for our daily Bloomberg Law Brief,

828
00:46:35,600 --> 00:46:38,040
Speaker 1: exploring legal issues in the news, and today we look

829
00:46:38,080 --> 00:46:41,040
Speaker 1: at the criminal charges against FTX co founder Sam Bankman,

830
00:46:41,080 --> 00:46:44,160
Speaker 1: freed from the Justice Department, and the Securities and Exchange

831
00:46:44,160 --> 00:46:48,520
Speaker 1: Commissions civil lawsuit against Bankman freed. The SEC alleges he

832
00:46:48,600 --> 00:46:51,640
Speaker 1: raised more than one point eight billion dollars, including one

833
00:46:51,680 --> 00:46:55,279
Speaker 1: point one billion, from about ninety US based investors, in

834
00:46:55,320 --> 00:46:58,600
Speaker 1: what the agency calls an orchestrated scheme to defraud equity

835
00:46:58,600 --> 00:47:01,319
Speaker 1: investors who bought in based on the belief that f

836
00:47:01,400 --> 00:47:04,359
Speaker 1: t X had appropriate controls. For more in the case,

837
00:47:04,400 --> 00:47:07,719
Speaker 1: Bloomberg's June Grosso speaks to securities long expert Robert him,

838
00:47:07,800 --> 00:47:12,239
Speaker 1: a partner at Tartar, Krinsky and Drogen. The SEC is

839
00:47:12,239 --> 00:47:16,440
Speaker 1: supposed to go after the securities fraud in this complaint,

840
00:47:16,480 --> 00:47:20,359
Speaker 1: how did it steer clear of allegations that would raise

841
00:47:20,480 --> 00:47:26,799
Speaker 1: questions of whether the f t X traded cryptocurrencies are securities. Yes,

842
00:47:27,000 --> 00:47:30,880
Speaker 1: the SEC has brought securities fraud charges in its complaints,

843
00:47:31,000 --> 00:47:33,719
Speaker 1: and the way they have done that is that they

844
00:47:33,719 --> 00:47:37,360
Speaker 1: have alleged that, starting in t SO way back to

845
00:47:37,400 --> 00:47:40,640
Speaker 1: the very beginning of when ft X was founded, that

846
00:47:40,840 --> 00:47:46,080
Speaker 1: misrepresentations were made to investors, including US investors, to induce

847
00:47:46,120 --> 00:47:48,920
Speaker 1: them to invest in the equity of f p X.

848
00:47:49,160 --> 00:47:52,799
Speaker 1: These are separate in the customers who traded crypto, they

849
00:47:52,800 --> 00:47:56,759
Speaker 1: were institutional investors who invested billions of dollars into f

850
00:47:56,880 --> 00:48:00,439
Speaker 1: t X, and the SEC said that that is done

851
00:48:00,520 --> 00:48:05,400
Speaker 1: through misrepresentations and omissions, and that's how the SEC has

852
00:48:05,440 --> 00:48:09,239
Speaker 1: crafted its security SCOT complaints in this matter. How much

853
00:48:09,360 --> 00:48:11,640
Speaker 1: was moved and how much was lost as result of

854
00:48:11,640 --> 00:48:15,719
Speaker 1: these transactions? What would the SEC have to prove? Where

855
00:48:15,800 --> 00:48:18,320
Speaker 1: the basics of what the SEC would have to prove

856
00:48:18,440 --> 00:48:21,480
Speaker 1: if this went to trial. In addition to having to

857
00:48:21,560 --> 00:48:26,359
Speaker 1: prove that the representations to investors were material, the key

858
00:48:26,440 --> 00:48:29,399
Speaker 1: thing that the SEC has to prove is how it's

859
00:48:29,440 --> 00:48:34,080
Speaker 1: called the enter which is either intent or recklessness on

860
00:48:34,160 --> 00:48:37,440
Speaker 1: the part of Banks and Freed part. And in white

861
00:48:37,440 --> 00:48:41,200
Speaker 1: collar cases like this one, a person's intent or defendant's

862
00:48:41,239 --> 00:48:44,560
Speaker 1: intent is always a contested issue. And I think we've

863
00:48:44,600 --> 00:48:47,920
Speaker 1: seen a preview of Banks and Free defense and prior

864
00:48:48,000 --> 00:48:51,000
Speaker 1: public statements that he's given where he says that he

865
00:48:51,080 --> 00:48:55,120
Speaker 1: wasn't aware that scx's customer deposits were being used to

866
00:48:55,200 --> 00:48:59,640
Speaker 1: cover Almida's debts and liabilities, so he's trying to set

867
00:48:59,719 --> 00:49:02,440
Speaker 1: himself pump is the defense that the underlings at the

868
00:49:02,480 --> 00:49:05,400
Speaker 1: two companies were doing this and he wasn't aware of it.

869
00:49:05,840 --> 00:49:07,879
Speaker 1: And that that's gonna be a tough defense to really

870
00:49:07,920 --> 00:49:10,879
Speaker 1: be successful on. And that's Robert him, partner at Charter

871
00:49:11,000 --> 00:49:14,000
Speaker 1: Krinsky and Drogan, speaking with Bloomberg's June Grosso. You can

872
00:49:14,000 --> 00:49:16,640
Speaker 1: catch more of that interview plus analysis of the latest

873
00:49:16,719 --> 00:49:20,000
Speaker 1: legal news by subscribing to the Bloomberg Law podcast or

874
00:49:20,040 --> 00:49:23,680
Speaker 1: downloading the show at Bloomberg dot com, Slash podcasts and

875
00:49:23,719 --> 00:49:27,320
Speaker 1: attorneys can find exceptional legal research and business development tools

876
00:49:27,640 --> 00:49:30,800
Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal

877
00:49:30,920 --> 00:49:34,200
Speaker 1: at b Law. Go s ANDP futures right now down

878
00:49:34,280 --> 00:49:36,759
Speaker 1: forty two points down futures are lower by two hundred

879
00:49:36,840 --> 00:49:39,800
Speaker 1: sixty one. NAZDAC futures on the decline by a hundred

880
00:49:39,800 --> 00:49:42,360
Speaker 1: sixty nine points, That is a drop of one point

881
00:49:42,480 --> 00:49:45,080
Speaker 1: four per cent. We have your latest business headlines, all

882
00:49:45,160 --> 00:49:47,560
Speaker 1: the news you need to start your day. Hour two

883
00:49:47,640 --> 00:49:50,120
Speaker 1: of Bloomberg Daybreak starts right now.