Speaker 1: Live from the Bloomberg into Ractive Brooker Studios. This is
Speaker 1: Bloombergy tape right for Thursday, December fifteen two. Coming up,
Speaker 1: the shower stocks continue their sell off following J. Powell's
Speaker 1: hawkish tone. Now it's the E. C. D and Beck
Speaker 1: of England's turn to make great decisions. China's economy weekend
Speaker 1: before the government dropped COVID zero and Elon Muska dumps
Speaker 1: more shares of Tesla. I maybe Morris New Jersey Transit
Speaker 1: will spend ninety seven million dollars for new transportation, and
Speaker 1: investigators are searching for the cause of that NYPD warehouse
Speaker 1: fire in Brooklyn. I'm John Stas and sports. The Knicks
Speaker 1: made it five straight wins. They beat the Bowls in overtime.
Speaker 1: The Ranger SECRETI straight win tonight. That's all trading ahead
Speaker 1: on Bloomberg day Break on Bloomberg eleven, Free on New York,
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nineteen
Speaker 1: and around the world Old on Bloomberg Radio dot Com
Speaker 1: and via the Bloombird Business app. I'm Stephen Carrol eu lead.
Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow, and
Speaker 1: US stock index futures are falling this morning. It is
Speaker 1: five oh one on Wall Street. We check the markets
Speaker 1: all day long. Here on Bloomberg right now is in
Speaker 1: p Futures are down forty four points, sets down one
Speaker 1: point one percent. Down futures down two one, that's down
Speaker 1: nine tens of a percent, and NASDAC features down one sixty,
Speaker 1: that's down one and a third percent. And the tenure
Speaker 1: Treasury that'll change, you'll three point four seven percent. Nathan, Yeah,
Speaker 1: the sell off continues this morning, Karen. Following the Federal
Speaker 1: Reserves final policy decision of the year, as expected, the
Speaker 1: Central Bank raised interest rates by another fifty basis points,
Speaker 1: but Chairman J. Powell pushed back at market hopes for
Speaker 1: a pivot to lower rates anytime soon. Price stability is
Speaker 1: the responsibility of the Federal Reserve and serves as the
Speaker 1: bedrock of our economy. Without price stability, the economy doesn't
Speaker 1: work for any one. In particular, Without price stability, we
Speaker 1: will not achieve a sustained period of strong labor market
Speaker 1: conditions that benefit all. J. J. Powell says the FED
Speaker 1: plans to stay the course until the job is done well.
Speaker 1: Nathan Stock snapfter two day winning streak after Powell's remarks
Speaker 1: about Buggenheim chief investment officer Scott Minor, it says Powell's
Speaker 1: tone should not have come as a surprise. We knew
Speaker 1: they had to be very hawkish, and the reason they
Speaker 1: had to be hawkish is that, you know, financial conditions
Speaker 1: have loosened pretty dramatically over the last six weeks. Uh.
Speaker 1: You know, the stock markets up substantially, rates her down
Speaker 1: meaningfully and so um. You know, the FED I think,
Speaker 1: felt that it needs to lean into that. And those
Speaker 1: are marks from Scott Minored at Guggenheim are being echoed
Speaker 1: by KPMG chief economist Diane Swung. They are more than
Speaker 1: willing to start helping rights if inflation comes down more rapidly.
Speaker 1: They have to send this message right now, and I
Speaker 1: think that's where they stand. They will be a political Panada.
Speaker 1: I have no out about j. Powell's ability to handle
Speaker 1: the politics, given what he's already been through. KPMG Day
Speaker 1: and Swunk and Scott Minored were joined joined us on
Speaker 1: a special edition of Bloomberg Surveillance following the FED decision,
Speaker 1: and we have more central bank decisions on the way, Karen,
Speaker 1: two big ones out of Europe. We begin our team
Speaker 1: coverage with Bloomberg's Lizzie Burden in London, where the Bank
Speaker 1: of England is expected to follow the FED with a
Speaker 1: fifty basis point hike. For me, what's the most interesting
Speaker 1: thing today will be the vote split, because potentially it's
Speaker 1: going to see a lot about where we had from
Speaker 1: here in terms of tightening. Bank of America JP Morgan
Speaker 1: and Numura have pointed to the possibility of a four
Speaker 1: way split between seventy five fifty twenty five and no
Speaker 1: hike at all. It would be the first time in
Speaker 1: the bank's independent history and that might seem chaotic, but
Speaker 1: really some welcome it as a confirmation that there's no
Speaker 1: groupthink on thread Needle Street. Bloomberg's Lizzie Burden reports the
Speaker 1: BOE decision comes down less than two hours from now,
Speaker 1: and just over an hour after the BOE announcement, Nathan
Speaker 1: we hear from the European Central Bank. Bloomberg's Maria today
Speaker 1: O continues our team coverage with details on that from Frankfurt,
Speaker 1: there was this debate would it be fifty, would it
Speaker 1: be seventy five? But of course we can't ignore that
Speaker 1: this is coming off the back of the Fed going
Speaker 1: for fifty. The animal spirits also in Frankfort, suggesting this
Speaker 1: is now inclined towards fifty basis points that would take
Speaker 1: the deposit weight to two percent, and of course signal
Speaker 1: discontinuation of hikes from the central bank. Bloomberg's Maria today
Speaker 1: O says all but three of the fifty one economist
Speaker 1: surveyed by Bloomberg predict a fifty basis point move from
Speaker 1: the e c B. Fifty basis points seems to be
Speaker 1: a theme for central banks. Karen, we also heard from
Speaker 1: the Swiss National Bank this morning and they raised rates,
Speaker 1: you guessed it, by fifty basis points, bringing the benchmark
Speaker 1: in Switzerland to one. Alright, we turned to Asia now, Nathan,
Speaker 1: we're economic data in focus, and fresh data out of
Speaker 1: Beijing shows growth slowed in November. That's before the government
Speaker 1: dropped as COVID zero policy. Bloomberg day Break Asia anchor
Speaker 1: Brian Curtis has more from Hong Kong. Retail sales contracted
Speaker 1: five point nine percent in November from a year ago
Speaker 1: and that was worse than the four percent to climb.
Speaker 1: In a Bloomberg survey, Industrial output grew two point two
Speaker 1: percent from a year ago, that also missed the estimate.
Speaker 1: COVID outbreaks across the country meant that people went out
Speaker 1: less and spent less money. Economists expect more disruption in
Speaker 1: the coming months. Brian Curtis, Bloomberg Radio. Okay, Brian, thanks.
Speaker 1: In Corporate News this morning, we're watching shares of Tesla
Speaker 1: after Elon Musk sold another chunk of his steak in
Speaker 1: the company. It's got the latest Live with Bloomberg Steve Rappaport,
Speaker 1: Good morning, Stave. You had morning, Nathan and Karen Well.
Speaker 1: It wouldn't be a newsday without a mention of Musk
Speaker 1: and his latest move, the Tesla founder unloading another three
Speaker 1: point six billion dollars in company shares. Musk already sold
Speaker 1: off eighteen billion in stock this year to finance his
Speaker 1: acquisition of Twitter and the electric automaker. Stock plummeted this
Speaker 1: year as investors grow concerned about Musk purchasing the platform.
Speaker 1: With this year sell off, Tesla valuation dropped below five
Speaker 1: hundred billion dollars for the first time since November. Live
Speaker 1: in New York. I'm Steve Rappaport Bloomberg Day Break Right, Steve, Thanks,
Speaker 1: and Tesla shares are down two point seven percent in
Speaker 1: early trading. Meanwhile, the fallout continues in the crypto space
Speaker 1: after the collapse of f t X. Democratic Senator Elizabeth
Speaker 1: Lawren is announcing if by partisan bill aim to crack
Speaker 1: down on digital currencies used in money laundering. This is
Speaker 1: all about what we need to do right now, and
Speaker 1: we need to stop the money laundering. We need to
Speaker 1: stop the cheating that's going on in crypto, and that
Speaker 1: means just getting a set of rules in place. Same
Speaker 1: kind of transaction, same kind of risk, means we've got
Speaker 1: to have the same rules. And it also means we've
Speaker 1: got to have a cop on the beat who was
Speaker 1: well enough financed. And if Senator Lawrensville becomes law, crypto
Speaker 1: exchanges will be required to verify customer identities the way
Speaker 1: banks and other financial institutions already do. Straight ahead your
Speaker 1: latest local headlines and this is Bloomberg. Thanks Karen. It
Speaker 1: is thirty three degrees in midtown Manhattan. We got rain
Speaker 1: moving in this afternoon, heading to the mid forties. It
Speaker 1: will turn breezy tonight, evening lows in the forties. Temperatures
Speaker 1: will rise overnight as rain continues. Time now to look
Speaker 1: at some of the other stories making news in New
Speaker 1: York and around the world. For that, we're joined by
Speaker 1: Bloomberg's Amy Morris. Good morning, Amy, all right, Good morning Nathan.
Speaker 1: The courts will not step into immediately stop New York
Speaker 1: Mayor Eric adams plans to force mentally ill people from
Speaker 1: the streets and into treatment. The judge found no evidence
Speaker 1: that irreparable harm would occur before he issues his final
Speaker 1: ruling on the practice in a couple of weeks. Advocates
Speaker 1: for people with mental illnesses. When it stopped, they say
Speaker 1: police officers should not be first responders for those needing healthcare.
Speaker 1: Crews are still looking for hot spots as investigators search
Speaker 1: for the cause of a huge fire at an NYPD
Speaker 1: evidence warehouse in Brooklyn. Former police Chief Terry Monahan says
Speaker 1: everything's been destroyed. They really don't even expect anything to
Speaker 1: be salvageable in there. Obviously, they're not going to oversaw
Speaker 1: until they get inside and start looking around on hands
Speaker 1: and some items in the warehouse, We're going to be destroyed.
Speaker 1: Anyway before the blaze, but some of the eleven thousand
Speaker 1: barrels of evidence were related to COLT cases. New Jersey
Speaker 1: Transit is spending nineties seven million dollars to buy a
Speaker 1: new ferry, sixty new busses, and rebuild thirty five locomotives,
Speaker 1: and jay dot com reports the board exercised an option
Speaker 1: with New Flyer to buy sixty more articulated buses. They
Speaker 1: awarded seven million dollars in contracts to Hornblower Yacht for
Speaker 1: a new ferry, and they'll contract with Caterpillar for the
Speaker 1: new locomotives. The Transits Board of Directors signed off on
Speaker 1: the plan yesterday. New Jersey Governor Phil Murphy is urging
Speaker 1: parents to get their young children updated coronavirus booster shots.
Speaker 1: Murphy says children ages six months to five years old
Speaker 1: are eligible now to get those vaccines, but only five
Speaker 1: and a half percent of New Jersey children between the
Speaker 1: ages of six months and four years have completed their
Speaker 1: primary series. Russian cosmonauts can'ts to plan spacewalk yesterday when
Speaker 1: they noticed a leak outside their spacecraft. NASA officials talked
Speaker 1: about it. We noticed a visible stream of flakes coming
Speaker 1: from the aft of the Sayers near the instrumentation and
Speaker 1: propulsion module that was indicative of the spacecraft is ducked
Speaker 1: at the International Space Station Russia. Still trying to figure
Speaker 1: out what it is and what caused it. Global News
Speaker 1: twenty four hours a day on airin Don Bloomberg Quick Take,
Speaker 1: powered by more than journalists and analysts in more than
Speaker 1: one countries. I'm anymore is this is Bloomberg, Nathan, Thank
Speaker 1: you Amy. Time now for the Bloomberg Sports Upday, brought
Speaker 1: to you by Tri stayed out. He here's John Stanho.
Speaker 1: Good morning, John, Good morning. Eat the next with the
Speaker 1: start of an unusual two games series in Chicago. Played
Speaker 1: the Bulls last night and they'll be there again tomorrow.
Speaker 1: Last night went overtime, Nicks pulled out the win on
Speaker 1: their fifth win in a row, and Julius Randalls had
Speaker 1: a lot to do with that plane. Much more like
Speaker 1: you did two years ago then last season when he struggled.
Speaker 1: Randalls scored thirty one at thirteen b bound seven assist
Speaker 1: thirty points. Here Jalen Brunson. The Warriors lost at Indiana,
Speaker 1: defending NBA champs. Can't went on the road. They're two
Speaker 1: and thirteen and Steph Curry left last night when injured shoulder.
Speaker 1: Rangers host Toronto Tonight. Blue Shirts have won their last
Speaker 1: four college hopes easy went for Seaton Hall over Drexel
Speaker 1: battle of top twenty teams. U C l A went
Speaker 1: to Maryland and won easily, up by twenty nine at
Speaker 1: a half. Sunday's World Cup Final promises to be a
Speaker 1: classic Argentina, with Lionel Messi looking for his elusive first
Speaker 1: championship taking on France, who has a chance to win
Speaker 1: back to back World Cups. It's only happened once, and
Speaker 1: that was Brazil sixty years ago. As the Jets get
Speaker 1: ready to host the Detroit Lyons, Sunday, coach Rob Sala
Speaker 1: asked about quarterback Zack Wilson, who lost his starting job.
Speaker 1: Been doing a great job, he he has. He's been
Speaker 1: deliberate in his approach over the last three weeks. Um,
Speaker 1: he's been pulled himself accountable with regards to how he
Speaker 1: wants to attack practice. Uh, how he's been warming in
Speaker 1: practice going against our defense, which I think is a
Speaker 1: pretty good defensive goal against. Salvo has moved Wilson from
Speaker 1: third string up the second behind Mike White, the forty
Speaker 1: Niners bring their sixth game winning straight tonight into Seattle.
Speaker 1: Chance of the Niners that clinch the NFC West. Their
Speaker 1: quarterback now is rookie Rock Purdy, though the Niners listing
Speaker 1: as questionable rib and oblique injuries X Matt Noah Synder
Speaker 1: guards signed with the Dodgers. John Stashwarre Bloomberg Sports, Nathan
Speaker 1: all Right, John, thank you, and Bloomberg Sports was brought
Speaker 1: to you by Audie. Don't let someone else drive off
Speaker 1: in the autie model you've always wanted. Visit your local
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Speaker 1: SMP futures down forty three points, a drop of one
Speaker 1: point one percent following the FED decision. DAL futures down
Speaker 1: two hundred seventy nine points. In NASDAC futures on the
Speaker 1: decline by a hundred fifty five points. That's the drop
Speaker 1: of one point three percent. The tenure treasury is down
Speaker 1: one thirty second. The yield three point four eight percent
Speaker 1: yield on the two year four point to four percent.
Speaker 1: Live from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, d C. Nationwide on Sirius Examp, the
Speaker 1: Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: You are listening to Bloomberg day Break. Good morning. I'm
Speaker 1: Nathan Hagar on a morning following some tough medicine from
Speaker 1: Federal Reserve chair Jerome Powell to a market that has
Speaker 1: been hoping for lower interest rates next year, Pal says
Speaker 1: there is still a ways to go to get inflation
Speaker 1: under control. And later this morning the European Central Bank
Speaker 1: in the Bank of England get their turn in the spotlight.
Speaker 1: Let's get more insights now. Simon French is with US
Speaker 1: chief economist at PAMR Gordon Simon, good morning. Were you
Speaker 1: surprised by the hawkish tone from Chairman Powell? Good morning?
Speaker 1: Nice and h No, I wasn't. If I'm honest, I
Speaker 1: think the while we've seen a rollover in both core
Speaker 1: and headline U S insation, I think it's still uncomfortably
Speaker 1: high from any people on the FMC. And what was
Speaker 1: I was really struck by in the summary of economic
Speaker 1: projections is quite how much FMC participants still see the
Speaker 1: risks to their inflation forecasts as skewed to the high side,
Speaker 1: and the risks therefore of more interest rate increases during
Speaker 1: the the market is pricing. But let's make no mistake
Speaker 1: that Jerom Powell is taking on the bond market, which
Speaker 1: is not believing of that policy action. Is this a
Speaker 1: FED that's trying to steer the market then towards tighter
Speaker 1: conditions to kind of do some of the work for
Speaker 1: the Fed. I think you're absolutely right. Financial conditions across
Speaker 1: a broad set of metrics have have loosened in recent weeks.
Speaker 1: On those simply on extraly market evaluations moving higher, a
Speaker 1: bit of a sell off on the US dollar loosening,
Speaker 1: the kind of financial conditions that Jerom Powell the FED
Speaker 1: actually want to snuff out core inflation in the US economy.
Speaker 1: Were thinking wages, shelter rents, the type of persistent wage
Speaker 1: pressures that actually monetary policy is better at addressing, and
Speaker 1: he is worried that that job becomes harder than more
Speaker 1: the market tries to front run any either plateau ng
Speaker 1: or subsequent cuts in in the FED funds rate. So yeah, absolutely,
Speaker 1: I think he's uncomfortable with pricing. And yesterday's dynamics were
Speaker 1: designed to lean into that. So then where does that
Speaker 1: leave market expectations for where rates could go from here?
Speaker 1: Does that open the possibility of a little bit of
Speaker 1: wiggle room for this FED, even as at least rhetorically
Speaker 1: it's saying that rates aren't going to come down anytime soon. Well,
Speaker 1: it wants to be data dependent, It wants to go
Speaker 1: meeting to meeting with were certainly in the era and
Speaker 1: not just for the FED but for all major central
Speaker 1: banks of stopping forward guidance, with stopping guide markets explicitly
Speaker 1: beyond the next scheduled meeting. And I think in an
Speaker 1: environment where we're all guessing, look, we can have sophisticated models,
Speaker 1: we can have well created communications, but all of us
Speaker 1: in markets, economists, central bankers are guessing how persistent this
Speaker 1: bout of inflation the types that we haven't seen for
Speaker 1: forty years? Hopps, this new will be so Yes, when
Speaker 1: you're talking about riggle room, I do think FMC members
Speaker 1: put a high value on having the ability to say, look,
Speaker 1: the data has changed, so are expected pathway has changed,
Speaker 1: and you need to price that into your m your
Speaker 1: expectations for what the risk free rate looks like during
Speaker 1: does the FED set us up for the central bank
Speaker 1: decisions that we're going to be getting today. I mean,
Speaker 1: we've already heard from the Swiss National Bank with a
Speaker 1: fifty basis point move of its own, and there's an
Speaker 1: expectation in the market for fifty from the ECB and
Speaker 1: the b o E this morning. Safety and numbers mate
Speaker 1: and safety in numbers, and that is if you don't
Speaker 1: know what your transmission mechanism is from monkey policy through
Speaker 1: to the real economy. If you're worried about being picked
Speaker 1: on because you're an outlier, you're seen as behind the curve,
Speaker 1: then actually moving as a herd as the central banks
Speaker 1: appear to be doing is probably the list least risky
Speaker 1: option here. So yes, the fact that we see four
Speaker 1: of the major central banks, potentially by the end of today,
Speaker 1: all moving fifty basis points um. That is an indication
Speaker 1: of where they are psychologically and know where they are
Speaker 1: in terms of their interpretations of the data, trying to
Speaker 1: minimize their errors rather than being certain of the correct stance.
Speaker 1: Only about thirty seconds left here, Simon, But the European
Speaker 1: banks have a lot of different inflation dynamics compared to
Speaker 1: the US don't they, particularly given the war in Ukraine. Yeah,
Speaker 1: it's all about supply driven energy lead inflation. In Europe.
Speaker 1: There's no real signs of demand search like you've got
Speaker 1: in the US. Very different backdrop for the ECB, and
Speaker 1: that suggests their terminal rates for much policy will be
Speaker 1: considerably lower than the federal reserves because it's just different
Speaker 1: inflation they're dealing with much less responsive to raising the
Speaker 1: bank right man. We get those decisions from the Bank
Speaker 1: of England in just a little bit less than two
Speaker 1: hours time seven am Wall Street time, and then the
Speaker 1: European Central Bank an hour and fifteen minutes after that
Speaker 1: at eight fifteen. Lots to dig into, lots of central
Speaker 1: bank moves. Great to get your thoughts this morning, Simon again,
Speaker 1: thanks for being with us. That was Simon French, chief
Speaker 1: economist at PAMRA Gordon SMP futures following the Fed's decision
Speaker 1: down forty five points, a drop of one point one percent,
Speaker 1: DAL futures down two and NASTAC futures leading the declines,
Speaker 1: down nearly one point four percent, a drop of a
Speaker 1: hundred sixty one points. The tenure Treasury is down one
Speaker 1: thirty second yield three point four eight percent. This is
Speaker 1: Bloomberg Markets headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot Com, the Bloomberg Business Atland at
Speaker 1: Bloomberg Quicktake, This is a Bloomberg Business flash, and I'm
Speaker 1: kared Moscow US DOT Index futures and European shares following
Speaker 1: after the Federal Reserve rebuffed expectations for a dubish Tilton
Speaker 1: said interest rates will go higher for longer. We checked
Speaker 1: the markets all day long here on Bloomberg Guess and
Speaker 1: P futures They're down about forty seven points. You're down
Speaker 1: one point two percent down futures down nine tens of
Speaker 1: upper cent or three hundred eight points, and NASDAG futures
Speaker 1: down one and a half percent on one d seventy
Speaker 1: one points. The docks in Germany's down one at a
Speaker 1: third percent ten, Your treasury down one and one thirty second.
Speaker 1: The yel three point four eight percent yield on the
Speaker 1: two year four point to four percent. Nine. Mex scrude
Speaker 1: oil is down about two tens of upper cent or
Speaker 1: seventeen cents at seventy seven twelve aparrel coll Max School
Speaker 1: down one point eight percent on thirty two dollars thirty cents.
Speaker 1: It's sventeen eighties six forty announced. The euro one point
Speaker 1: six one nine against the dollar, British found one point
Speaker 1: three zero the end one thirty six point seven too.
Speaker 1: And Bitcoin this morning is down a tens of a percent.
Speaker 1: It's at about seventeen thousand and seven hundred dollars. We
Speaker 1: continue to watch shares of Tesla down about three percent
Speaker 1: in early trading after Elon muscle at three point six
Speaker 1: billion dollars of shares. And we have a busy morning
Speaker 1: for economic data. Among the reports we're getting November retail
Speaker 1: sales and the weekly report on initial jobless claims. That's
Speaker 1: a Bloomberg business flash. Now here's Amy Morris with Moore
Speaker 1: on what's going on around the world. Amy, good morning,
Speaker 1: good morning, and thank you. Karen Fiser has an agreement
Speaker 1: to sell its anti viral medication batchel of It in China.
Speaker 1: This as sources tell Bloomberg, the White House will reopen
Speaker 1: a program today to allow people in the US to
Speaker 1: order batches of at home COVID tests for free. The
Speaker 1: intruder accused of attacking how speaker Nancy Pelosi's husband has
Speaker 1: been ordered to stand trial for attempted murder. Prosecutors say
Speaker 1: David de Pop has a list of their targets, including
Speaker 1: California Governor Gavin Newsom and after Tim, Tom Hanks and sports.
Speaker 1: In the NBA, the Wizards and Warriors lose the NIXT win.
Speaker 1: The World Cup Final is set for Sunday, when Argentina
Speaker 1: takes on France Global News twenty four hours a day
Speaker 1: on air rand on Bloomberg quick Take, bowered by more
Speaker 1: than twenty d journalists and analysts in more than one
Speaker 1: hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan,
Speaker 1: Thank you, Amy. It's coming up to five four on
Speaker 1: Wall Street on Nathan Hagar, this is Bloomberg Daybreak. The
Speaker 1: collapse of f t X has left investors asking what's
Speaker 1: next for the crypto exchange and the industry at large.
Speaker 1: The new CEO of f t X, John J. Rays,
Speaker 1: has to find on Capitol Hill this week with a
Speaker 1: blunt explanation for the collapse. This isn't uh, you know,
Speaker 1: sophisticated whatsoever. This is just plain old embezzlement. And after
Speaker 1: that testimony from John Ray, Guggenheim Chief investment Officer Scott
Speaker 1: Miner joined Bloomberg's Tom Keene and Lisa Abramowitz to warn
Speaker 1: of war shoes to drop after the f t X fallout.
Speaker 1: Still mind, it is confident the currency digitalization will proceed.
Speaker 1: But what he had to say, you are acclaimed as
Speaker 1: a student of what we're living in crypto in bitcoin.
Speaker 1: Do you have confidence that system can move forward? I do, Tom.
Speaker 1: You know, a year ago we were talking about crypto
Speaker 1: and there were approximately nineteen thousand coins, to which my
Speaker 1: comment was, this is mostly crap and there's going to
Speaker 1: be a washout and and just like the Internet bubble, Uh,
Speaker 1: you know, we will have survivors. And uh, you know,
Speaker 1: the digitalization of currency UH is just in its infancy
Speaker 1: and uh you know how this evolves now UH is
Speaker 1: going to require, you know, a regulatory framework to legitimize it.
Speaker 1: And I think we will move forward and I think
Speaker 1: this will be transformative to the general economy. Lisa would
Speaker 1: like to weigh in here, Mr No, I don't want
Speaker 1: to weigh in this per se, but there is a
Speaker 1: question of whether the whole FTX phenomenon really was born
Speaker 1: out of the easy money policies, and whether there are
Speaker 1: a lot more shoes to drop in the financial stability
Speaker 1: aspect of this. As everyone talks soft landing and as
Speaker 1: we talk about disinflation, how much less of a chance
Speaker 1: is there of that outcome which I know you've been
Speaker 1: talking a lot about in terms of the collapse. Yes,
Speaker 1: some sort of you know, more financial disruptions, shakeouts that
Speaker 1: things going to zero that were overnight that we're worth
Speaker 1: tens of millions of dollars. Sure, I mean, look, I
Speaker 1: think there's there's more to come, Lisa. Uh. And the
Speaker 1: reason is that you know that this is just like
Speaker 1: any number of periods where we've had easy money and
Speaker 1: a lot of speculation, and so the weakest players fall first,
Speaker 1: and so crypto is obviously something that was crazy. N
Speaker 1: f T s were I never quite understood them. I
Speaker 1: love the normal did of me was just great. But
Speaker 1: the you know, you look at um, you know, look
Speaker 1: at what happened uh in with the Bank of England. Uh,
Speaker 1: you know, we averted. I think a global financial crisis
Speaker 1: there by their quick response. So I think another shoe
Speaker 1: to drop them. I can't tell you where it is.
Speaker 1: And that was Goggenheim Chief investment Officer Scott Minerd speaking
Speaker 1: on Bloomberg surveillance You can hear the full interview on
Speaker 1: Bloomberg dot com. Catch more conversations just like that one
Speaker 1: by subscribing to the daily Bloomberg Surveillance podcast. Let's just
Speaker 1: take a quick look at bitcoin as we continue to
Speaker 1: follow the crypto crisis. It's down nine percent right now,
Speaker 1: trading right around seventeen thousand, seven hundred. We'll get your
Speaker 1: morning stop stories, local headlines, and the check of markets. Next.
Speaker 1: First we check in with Bloomberg meteorologist Rob Caroline. Cloudy
Speaker 1: skies across the Tri State area today. Rain will arrive
Speaker 1: for the afternoon forty five. Well, and it may start
Speaker 1: as a little bit of wet snow as sleep, but
Speaker 1: quickly goes over to rain. Where rainy breezy Tonight forty five.
Speaker 1: Rain Tomorrow breezy highs forty five to fifty, Sunshine Saturday
Speaker 1: forty five. I pressure will produce sunshine Sunday highs thirty
Speaker 1: five to forty. I'm Rob Carolin with your weekend forecast.
Speaker 1: I'm Bloomberg eleven three oh broadcasting live from the Bloomberg
Speaker 1: Interactive Broker's studio in New York, Bloomberg Elomon Free to Washington,
Speaker 1: d C. Bloomberg ninety nine one to Boston, Bloomberg one
Speaker 1: all six one to San Francisco Bloomberg n sixty to
Speaker 1: the Country Sirius XM to A one nineteen and around
Speaker 1: the globe the Bloomberg Business and Bloomberg Radio dot Com.
Speaker 1: This is Bloomberg Daybreak. It's coming up on five thirty
Speaker 1: on Wall Street. Good morning. I'm Nathan Hagar and I'm
Speaker 1: Karen moscall and are just about four hours away from
Speaker 1: the open of US trading. Let's yet you have to
Speaker 1: data the news you need to know at this hour.
Speaker 1: The sell off continues this morning after the Fed raised
Speaker 1: interest race by another fifty basis points. At the same time,
Speaker 1: Chairman J. Powell is dampening hopes for a pivot to
Speaker 1: lower rates anytime soon. The inflation data received so far
Speaker 1: from October and November show a welcome reduction in the
Speaker 1: monthly pace of price increases, but it will take substantially
Speaker 1: more evidence to give confidence that inflation is on a
Speaker 1: sustained downward path. Chair Powell said the Fed will stay
Speaker 1: the course until the job is done. Stock snapped at
Speaker 1: two day winds streak Karen following those remarks from J. Paul,
Speaker 1: Sylvia Jablonsky, CEO of Definance CTF, says for investors, FED
Speaker 1: chair knocked the wind out of their sales. The market
Speaker 1: I think was disappointed by the FED rhetoric because he
Speaker 1: talked a lot about moving that terminal right up to
Speaker 1: five point one per cent, but also downplaying the success
Speaker 1: that we're already seeing on the impacts of the work
Speaker 1: that they've done. Sylvia Jablonski with definan CTF, says she
Speaker 1: was more optimistic about a Santa Claus rally before Powel's
Speaker 1: news conference. Well, Nathan, we have more policy decisions on
Speaker 1: the way. In Europe. The Bank of England is expected
Speaker 1: to follow the FED with a half a point rate
Speaker 1: hike this morning, as is the European Central Bank, and
Speaker 1: in Switzerland, the Swiss National Bank also raised his benchmark
Speaker 1: rate by fifty basis points. In Asia, Karen, we are
Speaker 1: seeing some weak economic data. China's economy worse and last month,
Speaker 1: and that was before Beijing dropped its COVID zero policy.
Speaker 1: Retail sales in China contracted close to six percent over
Speaker 1: the past year and industrial output missed estimates. But the
Speaker 1: corporate news now, Nathan, where we're talking elon Musk yet again,
Speaker 1: the new Twitter owner is selling more shares of Tesla,
Speaker 1: and Bloomberg Steve Rappaport joins US Live with that story. Steve,
Speaker 1: good Morning, Good Morning, Karen and Nathan Elon. Musk offloaded
Speaker 1: three point five billion dollars in Tesla shares this week
Speaker 1: has laid us sell off to raise cash for Twitter.
Speaker 1: Tesla stock is down this year as invests grow concerned
Speaker 1: about his purchase of the social media platform. The electric automakers,
Speaker 1: valuation dropping below five hundred billion dollars for the first
Speaker 1: time in more than two years. Tesla's troubles cost Musk
Speaker 1: more than money. He also lost his title as the
Speaker 1: richest person in the world. Live in New York. I'm
Speaker 1: Steve Rappaport, Bloomberg Daybreak Now Steven. Tesla shares down another
Speaker 1: two point eight percent in pre market trading this morning. Now.
Speaker 1: A note on politics, Senator Elizabeth Warren's announced a bipartisan
Speaker 1: bill into cracking down on cryptocurrencies used in money laundering.
Speaker 1: If the bill passes into law, would require crypto exchanges
Speaker 1: to verify customers identities as other financial institutions do, and
Speaker 1: futures this morning are lower. SNP future is down forty
Speaker 1: four points, down one point one percent, NASDAG, futures down
Speaker 1: one at a third percent, down one hundred sixty one
Speaker 1: points down, futures down eight tens of upper cent or
Speaker 1: two hundred eighty seven points, and a ten year treasury
Speaker 1: down to thirty seconds. You have three point four eight
Speaker 1: percent straight ahead, your latest local headlines, plus a check
Speaker 1: of sports, and this is Bloomberg. Thanks Karen A's five
Speaker 1: thirty one on Wall Street. Amy Morris is here at
Speaker 1: those local headlines for New York and a look at
Speaker 1: what's going on around the world as well. Amy, Good morning,
Speaker 1: Good morning Nathan. Investigators still trying to figure out what
Speaker 1: sparked that major fire at an NYPD warehouse in Brooklyn,
Speaker 1: and former NYPD chief Terry Monahan says they don't expect
Speaker 1: anything to be salvage ale salvageable, but there are records
Speaker 1: in place. Everything to be documented in databases. At least
Speaker 1: what the evidence showed should be documented somewhere. It's just
Speaker 1: that physical evidence that will be going cruse continue to
Speaker 1: look for hotspots. More than a day after the raging
Speaker 1: fire destroyed Biological evidence Department vehicles and hundreds of confiscated
Speaker 1: e bikes. Uber drivers in New York will not be
Speaker 1: getting higher pay, at least not yet. A judge has
Speaker 1: blocked the Taxi and Limousine Commission from raising the pay
Speaker 1: of ridehailed drivers, while a lawsuit by Uber is pending.
Speaker 1: Uber argues the pay raise would have forced them to
Speaker 1: raise fairs. Driver advocates tell The New York Times they're
Speaker 1: stunned the court would temporarily block those races. New Jersey
Speaker 1: Transit officials developing a no ride list of violent passengers
Speaker 1: who assault transit workers. A year ago, passengers who assaulted
Speaker 1: employees would face a steep fine, but now the agency
Speaker 1: is working on a policy that would ban disorderly writers
Speaker 1: from the transit system, including a permanent band for any
Speaker 1: passengers who use a deadly weapon. The House has passed
Speaker 1: a short term government funding bill to push a government
Speaker 1: shutdown deadline back a week. On this vote, the yea's
Speaker 1: are two hundred and twenty four and the nays are
Speaker 1: two hundred and one. The motion is adopted. It funds
Speaker 1: the government for one more week. The short term bill
Speaker 1: now goes to the Senate. The FDA says there's a
Speaker 1: nationwide shortage of amoxicillin the popular antibiotic is in high
Speaker 1: demand because of more respiratory viruses in the US. Officials
Speaker 1: say part of the problem drug companies rely on other
Speaker 1: countries to get the ingredients, and they've been facing supply
Speaker 1: chain issues. Global News twenty four hours a day on
Speaker 1: air and on bloom A Quick Take, powered by more
Speaker 1: than twenty seven hundred journalists and analysts and more than
Speaker 1: one hundred twenty countries. I'm Amy Morris. This is Bloomberg. Nathan.
Speaker 1: Thanks Amy. By thirty three on Wall Street time for
Speaker 1: the Bloomberg Sports Update, brought to you by Try State.
Speaker 1: Don't he Here's John stash Our. All right, Nathan, slow
Speaker 1: start to the next season, but coming on now in
Speaker 1: Chicago looking for a fifth win in a row. The
Speaker 1: game went to overtown Brunts at high left against Carusoe.
Speaker 1: Certainly to the quarter crossover ncle breaker three sail brunt
Speaker 1: ship Clupsnixs up by nine with twenty seven point nine
Speaker 1: ago in overtime and that should be it. In the
Speaker 1: Windy City Wow esp in New York next beat the
Speaker 1: Bulls one point for Julius Randall and Bronson scored thirty
Speaker 1: r J. Barrett and at twenty two. Nixt are the
Speaker 1: worst three point shooting team in the NBA, and yet
Speaker 1: last night they made eighteen and thirty four. Three are
Speaker 1: up to sixth place in the East as they oddly
Speaker 1: play the Bulls again tomorrow sorrow, also in Chicago, the
Speaker 1: night after the Knicks one their fifth in a row,
Speaker 1: Rangers will try to do likewise. They host Toronto Devils
Speaker 1: try to end the three game losing streak. They host
Speaker 1: Philadelphia NFL tonight forty Niners in Seattle. Niners have won
Speaker 1: six straight win tonight clinches them. The NFC West Jets
Speaker 1: have made a change in their quarterback death charg Zack Wilson,
Speaker 1: who went from first string all the way down to
Speaker 1: third is now at least up the second string, ahead
Speaker 1: of Joe Flacco, but still behind Mike White. Will leave
Speaker 1: the Jets into a home game Sunday with Detroit. The
Speaker 1: Giants played the primetime game in Washington, the Commanders playing well,
Speaker 1: desplaite all the turmoil surrounding their owner, Dan Snyder. Washington
Speaker 1: Post reports Snyder is moving forward with receiving offers from
Speaker 1: those interested in buying the team from him. At the
Speaker 1: World Cup, France ended Morocco Cinderella Laurn, Sunday's Final France
Speaker 1: against Argentina, Johns Dash Award, Bloombrook Sports, Nathan FRONTI BUYOUTI
Speaker 1: don't let someone else drive off in the outie model
Speaker 1: you've always wanted. Visit your local Tri State outie dealer
Speaker 1: to get behind the wheel of yours today, or visit
Speaker 1: outie Offers dot com for more information on Wall Street
Speaker 1: time for the Tri State Business Report. For that, we
Speaker 1: turned to bloombergs ed Cory. New York's high taxes may
Speaker 1: already be pushing wealthy residents out of the city. That's
Speaker 1: according to Controller Thomas den Napoli, and analysis by New
Speaker 1: York City's Independent Budget Office shows the number of city
Speaker 1: taxpayers who earned between one million and five million dollars
Speaker 1: fell eleven percent in two thousand twenty. New York City's
Speaker 1: business districts would get a makeover under a plan unveiled Wednesday.
Speaker 1: The New New York Panel recommends converting office space to
Speaker 1: residential areas, making outdoor dining permanent, and improving transit. Governor
Speaker 1: Kathy Hokel and Mayor Eric Adams launched the committee seven
Speaker 1: months ago. Complaints about helicopter noise in New York City,
Speaker 1: or up exponentially from about thirty three hundred and nineteen
Speaker 1: to almost twenty six thousand last year in Manhattan, and
Speaker 1: Queen's complaints about helicopter noise this year have outnumbered those
Speaker 1: about rats that your Bloomberg Dry State business report. I'm
Speaker 1: in Corey, Thanks that it's six on Wall Street. The
Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was
Speaker 1: written by the Bloomberg Editorial Board. In announcing plans to
Speaker 1: massively increase defense spending, Japan has embarked on a military transformation.
Speaker 1: The budget increases proposed by Prime Minister Fumio Kashita last
Speaker 1: week would provide Japan's self defense forces with unprecedented resources
Speaker 1: around forty three trillion yen or billion dollars over the
Speaker 1: next five years. Given rising security challenges in the Pacific,
Speaker 1: Japan's ambition is bold and welcome. For the new spending
Speaker 1: to be truly effective, though the government will need to
Speaker 1: make hard choices. While flashy weapons systems have appeal, purchases
Speaker 1: of emerging, low cost technologies would allow the military to
Speaker 1: get more bang for its yen. Maintaining military spending at
Speaker 1: this level will likely require higher taxes and painful spending cuts.
Speaker 1: The government must be able to assure citizens their money
Speaker 1: is being spent wisely. This editorial was written by the
Speaker 1: Bloomberg Editorial Board. For more Bloomberg opinion, please go to
Speaker 1: Bloomberg dot com slash opinion or O P I n
Speaker 1: go on the Bloomberg terminal. This has been Bloomberg opinion,
Speaker 1: and you can hear Bloomberg opinion editorials every weekday at
Speaker 1: this time. Terminal customers can read more at O P
Speaker 1: I n go. It looks like we could be in
Speaker 1: line for more selling on Wall Street today after the
Speaker 1: Fed decision and the hawkish tone from Chairman Powell. We
Speaker 1: have SMP futures right now down forty two points, a
Speaker 1: drop of one percent. Down futures are lower by two
Speaker 1: hundred sixty nine points. In NASDAC futures down one point
Speaker 1: three percent, a drop of one hundred fifty six points.
Speaker 1: Tenure Treasury is down one thirty second yeld three point
Speaker 1: eight percent, yield on the two year four point to
Speaker 1: four Nimex crudes down to tenth percent at seventy seven
Speaker 1: dollars seventeen cents a barrel. We're gonna get more reaction
Speaker 1: to the FED decision next, with Wells Fargo senior economist
Speaker 1: Sarah House joining US Live. This is Bloomberg Markets, headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg Quick Tape.
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow
Speaker 1: and US Dock Index futures and European shares are lower
Speaker 1: this morning after the Federal Reserve rebuffed expectations for a
Speaker 1: devilish Tilton said interest rates will go higher for longer.
Speaker 1: Check the markets all day long here on Bloomberg radios
Speaker 1: and P futures down forty points. That's down one percent.
Speaker 1: Down future is down three quarters of a percent, or
Speaker 1: two hundred fifty nine points, and as the futures down
Speaker 1: one hundred fifty five points or one point three percent.
Speaker 1: The decks in Germany's down one point two percent. The
Speaker 1: ten year treasury down one thirty second. You have three
Speaker 1: point eight percent. They yield on the two year four
Speaker 1: point to three percent. Nine mack screwed oil little change
Speaker 1: at seventy seven dollars twenty two cents of Barrel. Comic
Speaker 1: School down one point seven percent down thirty dollars twenty
Speaker 1: cents fifty announced the year one point oh six two
Speaker 1: zero against the dollar and the yen one thirty six
Speaker 1: point seven four. 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 think you, Karen. The Senate wants to
Speaker 1: ban the use of TikTok on government phones and devices.
Speaker 1: The bill was passed with no objections last night. Still
Speaker 1: needs to be passed by the House and signed by
Speaker 1: President Biden. Chances are demming that Congress will be able
Speaker 1: to take up a multibillion dollar package to renew a
Speaker 1: cluster of business tax breaks and provide a more generous
Speaker 1: child tax credit before lawmakers leave for the holidays. In sports,
Speaker 1: in the NBA, the Wizards and Warriors lose, the Knicks win.
Speaker 1: The World Cup Final is set for Sunday, Argentina. Taken
Speaker 1: on France Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quick Take, powered by more than
Speaker 1: twenty hundred journalists and analysts and more than one hundred
Speaker 1: twenty countries. I'm anymore, is this is Bloomberg? Nathan all Right?
Speaker 1: Amy thanks for coming up to two on Wall Street.
Speaker 1: You're listening to Bloomberg Daybreak. Good morning, I'm Nathan Hagar
Speaker 1: alongside Karen Moscow. Let's take a look at some of
Speaker 1: the other stories making news this morning. While the focus
Speaker 1: has been on central banks, we do get a key
Speaker 1: economic report today. The government issues November retail sales figures
Speaker 1: this morning, and economists predict a decline, a reversal from
Speaker 1: October's advance. Bloomberg's Benny Delve Judas reports across America retail
Speaker 1: sales have been on a sea saw since midyear. October
Speaker 1: sow the biggest game since February. November data could disappoint,
Speaker 1: reflecting on part weaker sales at car lots and restaurants.
Speaker 1: Lower gasoline prices could also subtract. Even so, Bloomberg Economics
Speaker 1: is bargain hunting in an ear of high inflation. Probably
Speaker 1: helped on Black Friday, traditional start of the US holiday
Speaker 1: shopping season. Finny Delt, Judas, Bloomberg debris Right, Vinnie, thank you.
Speaker 1: So let's turn from the economy to the video game
Speaker 1: industry now. Microsoft said that antitrust regulators shrugged off its
Speaker 1: offer to make call of duty available to gaming rivals,
Speaker 1: including Sony, as part of its sixty nine billion dollar
Speaker 1: purchase of Activision Blizzard. They caught up with Microsoft president
Speaker 1: Brad Smith to get more details. All of these concerns
Speaker 1: have basically focused on one title, a great title, a
Speaker 1: game Call of Duty. But we've said we're prepared to
Speaker 1: commit contractually. We're prepared to commit under a consent to
Speaker 1: career and undertaking that that will be available for Sony
Speaker 1: on comparable terms to Xbox for the next decade. So
Speaker 1: I look at this and say, this will be good
Speaker 1: for competition, and we have a solution to the one
Speaker 1: problem that seems to bother people the most. Microsoft President
Speaker 1: Brad Smith says the company needs regulatory approval in sixteen
Speaker 1: countries for the Activision deal to go through. While staying
Speaker 1: in the tech space, now we're seeing another policy change
Speaker 1: at Twitter. The company has now suspended several accounts that
Speaker 1: tracked private chats, and Bloomberg said Baxter has that story.
Speaker 1: This is just another turn and what Elon Musk says
Speaker 1: will be an open platform. The first account to go
Speaker 1: was the ellen jet page run by Jack Sweeney. It
Speaker 1: tracks Musk's private jet. Musk had said last month that
Speaker 1: he would not ban the account, saying it was evidence
Speaker 1: to his commitment to free speech. Well, now he has
Speaker 1: dumped all thirty Twitter accounts that Sweeney managers, including his
Speaker 1: personal account, saying that they violate Twitter policy. Sweeney's last
Speaker 1: tweet was can I get my eight dollars back in
Speaker 1: San Francisco? I'm at Baxter Bloomberg daybreak. Oh wow, thank
Speaker 1: you Ed for that. Let's turn back to the economy now.
Speaker 1: Our top story this morning. The hawkish slow down Federal
Speaker 1: Reserve did raise interest rates another fifty basis points. That
Speaker 1: was widely expected following four straight seventy five point moves.
Speaker 1: But Chair J. Powell is making clear that the central
Speaker 1: banks fight against historically high inflation is not over. Restoring
Speaker 1: price stability is essential to set the stage for achieving
Speaker 1: maximum employment and stable prices over the long run. The
Speaker 1: historical record cautions strongly against prematurely loosening policy. We will
Speaker 1: stay the course until the job is done, Chairman Powell,
Speaker 1: speaking there at his post decision news conference yesterday. We
Speaker 1: get more reaction live this morning by Sarah House, senior
Speaker 1: economist at Wells Fargo. Is this message being received by
Speaker 1: this market? Sarah? It doesn't appear to be so, or
Speaker 1: at least I think there's some doubts on either the
Speaker 1: side willingness to follow through or whether the economy can
Speaker 1: withstand three HIGs at the side is still signaling that
Speaker 1: our arcticn So you know, we didn't see necessarily see
Speaker 1: the reaction in the direction that we would have expected
Speaker 1: based on this more hawkish outlook. So I think there's
Speaker 1: there's still some communication there to be done. Is sorry,
Speaker 1: are you surprised at how hawkish? Uh? This fed continues
Speaker 1: to be? Should it continue to be this hawkish? We
Speaker 1: weren't really sup right, So our forecast heading into this
Speaker 1: meeting was that we'd see the said funds rate rise
Speaker 1: to that range of five five quarter percent that was
Speaker 1: where the median doubt was for next year, and then
Speaker 1: it would stay there all all through the year. So really,
Speaker 1: when you look at the rhetoric from both the statement
Speaker 1: there was essentially just one word changed, but also Pal's
Speaker 1: opening remarks and even the sentiment in the press conference,
Speaker 1: it was a little different than what he and other
Speaker 1: side officials have been stressing. So inflation is still far
Speaker 1: too high and they are going to going to stay
Speaker 1: at it until the job is done, and so I
Speaker 1: think the side was signaling even as there they were
Speaker 1: step preparing to just step down a little bit, that
Speaker 1: they were by no means done. So it's not just
Speaker 1: about the pace of policy tightening, but it's the eventual
Speaker 1: height at which the said funds reaches and how long
Speaker 1: it stays there. Yeah, one of the big data or
Speaker 1: one of the big messages that Chairman Palpi out yesterday
Speaker 1: was there's a greater risk historically from undertightening than from overtighten.
Speaker 1: Names do you think that's the right way for this
Speaker 1: Fed to go? So? I think given that you do
Speaker 1: need that price stability for that long run sustainable health
Speaker 1: of the labor market, and the fact that the Fed
Speaker 1: has raised rags highs they have that does get them
Speaker 1: room to Christian if they if they do overtighten. I
Speaker 1: think that supports their their view in that case. But
Speaker 1: I think part of this just comes from the FED
Speaker 1: miss on on the upside. So they got inflation wrong, um,
Speaker 1: thinking that it wouldn't be that that it wouldn't get
Speaker 1: as high as it has, and so they want to
Speaker 1: be garden sure that they don't that they're not too
Speaker 1: optimistic again on inflation and that it's going to come
Speaker 1: back to two percent in pretty pretty easy or short order. Well,
Speaker 1: you've given that they FED got inflation wrong. What's the
Speaker 1: risk in your view that the FED gets policy wrong
Speaker 1: and goes too far with these interest rate hikes? And
Speaker 1: they're in a tough spot. So we know that monetary
Speaker 1: policy not only does it have those one variable lags,
Speaker 1: but ultimately it's a blend instrument, and so it's it's
Speaker 1: hard to fine tune. But they are getting to that
Speaker 1: stage where this past year it was all about catch up,
Speaker 1: so it was clear that policy needs to be tighter
Speaker 1: and that the labor market could withstand it. But this
Speaker 1: year is certainly going to be This upcoming year is
Speaker 1: certainly going to be more difficult as they do get
Speaker 1: into that fine tuning aspect. But that's hard to do
Speaker 1: with with such a blunt tool. So I think they're
Speaker 1: recognizing that the risks of a downturn have increased. You
Speaker 1: saw that with the GDP projections coming down pretty noticeably
Speaker 1: and the unemployment rate numbers ticking up a little bit
Speaker 1: more and coming in you know, full percentage point above
Speaker 1: the low of the cycle that we've seen, which if
Speaker 1: historical we've never seen outside of recession, so I think
Speaker 1: you know, implicitly they are acknowledging how difficult it will be,
Speaker 1: but they are willing to withstand that downturn if it
Speaker 1: means a story and price stability. Only about thirty seconds
Speaker 1: left here, Sarah, but we've got more data for the
Speaker 1: state of dependent FED. What's your expectation for re tell sales?
Speaker 1: So we actually think we'll see a slight increase in
Speaker 1: UM in the retail sales number, at least on the headline,
Speaker 1: but um, we have to acknowledge that this is a
Speaker 1: really volatile series. So watch the revision because that'll that
Speaker 1: will give us a picture of not just a November
Speaker 1: sales but also firma flitting on on where we've been.
Speaker 1: But you know, we're still in a period of you know,
Speaker 1: pretty strong, pretty strong price growth and also consumers that
Speaker 1: are still very much willing to go out there and
Speaker 1: spend what that'll be interesting at the consensus on the
Speaker 1: Bloomberg terminal showing a decline in month over month retail sales.
Speaker 1: Thanks for this, Sarah, great getting your thoughts this morning.
Speaker 1: Sarah House, senior economist at Wells Fargo, joining us live
Speaker 1: this morning. Following that fifty basis point decision from the
Speaker 1: Federal Reserve and the hawkish town from Chairman Pal. It's
Speaker 1: moving markets even lower once again this morning, with SMP
Speaker 1: futures down forty point, STAFLE futures down two hundred forty nine,
Speaker 1: and NASTAC futures low. We're right now by a hundred
Speaker 1: fifty six points. This is Bloomberg Markets headlines and breaking
Speaker 1: news twenty four hours a day at Bloomberg dot com,
Speaker 1: the Bloomberg Business Atland at Bloomberg Quick Tape. This is
Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow and that's
Speaker 1: updates brought to you by SEI. Built on advanced technologies
Speaker 1: and fifty years of innovation. SEI offers asset Managers, a
Speaker 1: comprehensive and flexible operations outsourcing platform. Go to s C
Speaker 1: i C dot com. Slash managers and futures are following
Speaker 1: this morning after the Federal Reserve interest rate decision. To
Speaker 1: check the markets all day long here on Bloomberg Radio.
Speaker 1: S and P futures down forty points this morning, down
Speaker 1: a one percent. DAL futures are down seven tenths of
Speaker 1: upper cent or two hundred forty seven points and NASDAC
Speaker 1: futures down one at a third percent or one fifty
Speaker 1: nine points. The decks in Germany's down one point two percent. Ten,
Speaker 1: Your treasury down three thirty seconds, you know, three point
Speaker 1: four eight percent. They yield on the two year four
Speaker 1: point to four percent. Nine X screwed oil on the
Speaker 1: rise up to ten percent or sixteen cents at seventy
Speaker 1: seven dollars, forty four cents a barrel. COMEXS goal down
Speaker 1: one point seven percent, down thirty dollars sixty cents at
Speaker 1: seventeen eighty eight ten announced. The euro is at one
Speaker 1: point oh six one nine against the dollar. British pound
Speaker 1: one point to three is three three, the yen has
Speaker 1: at one thirties six point seven four and Bitcoin this
Speaker 1: morning is down nine ten percent at a seventeen thousand,
Speaker 1: six hundred seventy dollars. And that's a Bloomberg business flash. Nathan,
Speaker 1: all right, Karen, thank you. It's five fifty six on
Speaker 1: Wall Street. It's time for our daily Bloomberg Law Brief,
Speaker 1: exploring legal issues in the news, and today we look
Speaker 1: at the criminal charges against FTX co founder Sam Bankman,
Speaker 1: freed from the Justice Department, and the Securities and Exchange
Speaker 1: Commissions civil lawsuit against Bankman freed. The SEC alleges he
Speaker 1: raised more than one point eight billion dollars, including one
Speaker 1: point one billion, from about ninety US based investors, in
Speaker 1: what the agency calls an orchestrated scheme to defraud equity
Speaker 1: investors who bought in based on the belief that f
Speaker 1: t X had appropriate controls. For more in the case,
Speaker 1: Bloomberg's June Grosso speaks to securities long expert Robert him,
Speaker 1: a partner at Tartar, Krinsky and Drogen. The SEC is
Speaker 1: supposed to go after the securities fraud in this complaint,
Speaker 1: how did it steer clear of allegations that would raise
Speaker 1: questions of whether the f t X traded cryptocurrencies are securities. Yes,
Speaker 1: the SEC has brought securities fraud charges in its complaints,
Speaker 1: and the way they have done that is that they
Speaker 1: have alleged that, starting in t SO way back to
Speaker 1: the very beginning of when ft X was founded, that
Speaker 1: misrepresentations were made to investors, including US investors, to induce
Speaker 1: them to invest in the equity of f p X.
Speaker 1: These are separate in the customers who traded crypto, they
Speaker 1: were institutional investors who invested billions of dollars into f
Speaker 1: t X, and the SEC said that that is done
Speaker 1: through misrepresentations and omissions, and that's how the SEC has
Speaker 1: crafted its security SCOT complaints in this matter. How much
Speaker 1: was moved and how much was lost as result of
Speaker 1: these transactions? What would the SEC have to prove? Where
Speaker 1: the basics of what the SEC would have to prove
Speaker 1: if this went to trial. In addition to having to
Speaker 1: prove that the representations to investors were material, the key
Speaker 1: thing that the SEC has to prove is how it's
Speaker 1: called the enter which is either intent or recklessness on
Speaker 1: the part of Banks and Freed part. And in white
Speaker 1: collar cases like this one, a person's intent or defendant's
Speaker 1: intent is always a contested issue. And I think we've
Speaker 1: seen a preview of Banks and Free defense and prior
Speaker 1: public statements that he's given where he says that he
Speaker 1: wasn't aware that scx's customer deposits were being used to
Speaker 1: cover Almida's debts and liabilities, so he's trying to set
Speaker 1: himself pump is the defense that the underlings at the
Speaker 1: two companies were doing this and he wasn't aware of it.
Speaker 1: And that that's gonna be a tough defense to really
Speaker 1: be successful on. And that's Robert him, partner at Charter
Speaker 1: Krinsky and Drogan, speaking with Bloomberg's June Grosso. You can
Speaker 1: catch more of that interview plus analysis of the latest
Speaker 1: legal news by subscribing to the Bloomberg Law podcast or
Speaker 1: downloading the show at Bloomberg dot com, Slash podcasts and
Speaker 1: attorneys can find exceptional legal research and business development tools
Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal
Speaker 1: at b Law. Go s ANDP futures right now down
Speaker 1: forty two points down futures are lower by two hundred
Speaker 1: sixty one. NAZDAC futures on the decline by a hundred
Speaker 1: sixty nine points, That is a drop of one point
Speaker 1: four per cent. We have your latest business headlines, all
Speaker 1: the news you need to start your day. Hour two
Speaker 1: of Bloomberg Daybreak starts right now.