WEBVTT - Battle for Speaker Heats Up; Gross on Bond Market Selloff

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 3>Let's start with the latest on the speakership fight on

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<v Speaker 3>Capitol Hill. So far, too Republicans have announced their running

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<v Speaker 3>to replace Kevin McCarthy, House Majority Leader Steve Scalise and

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<v Speaker 3>Jim Jordan, who leads the Judiciary Committee and is running

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<v Speaker 3>one of the impeachment inquiries and to President Biden. Matt Gates,

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<v Speaker 3>the Florida Republican who led McCarthy's ouster, says he'd be

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<v Speaker 3>happy with either one of them.

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<v Speaker 4>I'm eager to hear their plans and their vision. But

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<v Speaker 4>if the House of Representatives goes from the stewardship of

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<v Speaker 4>Kevin McCarthy to either the stewardship of Jim Jordan or

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<v Speaker 4>Steve Scalise, that's going to come to the delight of

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<v Speaker 4>many Conservatives and certainly many of the Floridians that I represent.

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<v Speaker 3>Congressman Gates tells Bloomberg he opposes further aid to Ukraine.

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<v Speaker 3>Scalise has voted Ford in the past, but Gates says

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<v Speaker 3>that would not be a deal breaker for him. Hear

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<v Speaker 3>more of our interview with Congressman Matt Gates on the

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<v Speaker 3>Bloomberg Talks podcast.

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<v Speaker 2>Well, Nathan, the infighting on Capitol Hill, as President Biden

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<v Speaker 2>calling for an end to what he calls poisonous politics.

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<v Speaker 5>No, we have strong disagreements, but we need to stop

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<v Speaker 5>seeing each other as enemies. We need to talk to

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<v Speaker 5>one another, listen to on our work, and we can

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<v Speaker 5>do that.

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<v Speaker 2>The President is urging House Republicans to work with Democrats

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<v Speaker 2>on a spending bill to averted government shutdown next month.

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<v Speaker 2>Former Speaker McCarthy says the President did not communicate with

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<v Speaker 2>him enough during past budget negotiations. Biden says any conversations

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<v Speaker 2>wouldn't have fixed problems in McCarthy's own conference, Well.

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<v Speaker 3>Staying with politics, Karen, Former President Donald Trump has raised

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<v Speaker 3>more than forty five million dollars in the third quarter

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<v Speaker 3>for his campaign as he capitalized on publicity from his

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<v Speaker 3>legal woes. This week, Trump's been appearing in a New

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<v Speaker 3>York City courtroom for the civil case accusing him of

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<v Speaker 3>overstating his asset values and lying about his wealth, and

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<v Speaker 3>he blasted New York Attorney General Letitia James. I'm stuck

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<v Speaker 3>here because.

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<v Speaker 6>I have a prewept attorney General that intermmunicates with the

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<v Speaker 6>DK in Washington to keep me nice and miss an.

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<v Speaker 3>Attorney General James is firing back at Trump.

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<v Speaker 7>This case was brought simply because it was a case

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<v Speaker 7>where individuals have engaged in a patent and practice of fraud.

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<v Speaker 7>And I will not sit idly by and allow anyone

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<v Speaker 7>to subvert the law. And lastly, I will not be bullied.

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<v Speaker 7>And so mister Trump is no longer here. That Donald

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<v Speaker 7>Trump show is over. This was nothing more than a

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<v Speaker 7>political stunt.

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<v Speaker 3>New York Attorney General Letitia James accuses the former president

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<v Speaker 3>of inflating his assets by billions of dollars a year

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<v Speaker 3>to dupe banks and insurers.

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<v Speaker 2>Well staying in New York, Nathan. The trial of FTX

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<v Speaker 2>founder Sam Bankman Freed is underway, with the spotlight already

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<v Speaker 2>on those closest to him and Bloomberg, and Alli Bosik

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<v Speaker 2>is covering the case.

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<v Speaker 8>Over the six week trial. Dozens of high profile testimonies

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<v Speaker 8>will include Caroline Ellison, Bankman Freed's former girlfriend, and investor

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<v Speaker 8>Anthony Scaramucci, whose firm had taken money from Bankman Freed's firm.

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<v Speaker 8>They are expected to testify with dozens of others, and

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<v Speaker 8>the defense still says working at a startup is like

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<v Speaker 8>building a plane as you're flying it, and that no

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<v Speaker 8>one CEO or person can be everywhere all managing such

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<v Speaker 8>a fast rising firm. Remember, FTX had almost six million

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<v Speaker 8>customers at its peak. Bankman Freed may spend most of

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<v Speaker 8>his life in prison if found guilty.

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<v Speaker 2>Bloombercanelli Bosik says, bankmin Freed is accused of using billions

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<v Speaker 2>of dollars in customer deposits at FTX for speculative trading,

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<v Speaker 2>as well as for luxury real estate and for political contributions.

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<v Speaker 3>All right, Karen, Let's move west to legal news out

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<v Speaker 3>of California. Private testimony in the Justice Department's lawsuit against

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<v Speaker 3>Google will be released later this week. Bloomberg's at Baxter

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<v Speaker 3>has the story.

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<v Speaker 9>The judge has the testimony from behind closed doors of

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<v Speaker 9>the CEOs of Apple and search engine Duck duck Go

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<v Speaker 9>cut to the heart of the anti trust suit. Sources

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<v Speaker 9>say the two held discussions to have duck doc Go

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<v Speaker 9>replace Google and the private mode of Apple Safari browser,

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<v Speaker 9>but that Google used its size and its wealth to

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<v Speaker 9>pay billions of dollars to keep Google in play. It

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<v Speaker 9>is expected the information will be released later this week.

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<v Speaker 9>In San Francisco, I'm at Baxter Bloomberg Radio.

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<v Speaker 2>Right and thanks Will. Staying in California. There's some optimism

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<v Speaker 2>over the Hollywood actors strike. Both the union that represents

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<v Speaker 2>the actors and the Association of Motion Picture and Television Producers,

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<v Speaker 2>which represents Hollywood studios, have met for a full day

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<v Speaker 2>of negotiations. Talks are scheduled to continue tomorrow.

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<v Speaker 3>Turning to markets now, the route in treasuries that sent

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<v Speaker 3>shock waves through the global bond market appears to have subsided,

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<v Speaker 3>but still Barclay says global bonds are doomed to keep

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<v Speaker 3>falling unless it sustained slump inequities revives the appeal of

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<v Speaker 3>fixed income assets. Bill Gross, co founder of PIMCO, says

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<v Speaker 3>the bond market is quote a little over sold. In

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<v Speaker 3>an interview with Bloomberg, Gross also took aim at retail investors,

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<v Speaker 3>saying they've helped us scare the market by acting as

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<v Speaker 3>quote little bond vigilantes.

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<v Speaker 10>They've been spooked over the last week or so by

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<v Speaker 10>declines of two, three, four, five percent in their and

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<v Speaker 10>so I think they're joining the crowd in terms of selling.

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<v Speaker 10>And you know we're seeing a little bit of an

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<v Speaker 10>oversoul market here headed to five percent.

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<v Speaker 3>And you can hear our full conversation with Bill Gross

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<v Speaker 3>on the Bloomberg Talks podcast.

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<v Speaker 4>Well.

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<v Speaker 2>In corporate news, Nathan shares a Clorox are down almost

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<v Speaker 2>five percent this morning. The cleaning products maker is still

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<v Speaker 2>reeling from a cyber attack that diserupted production. Now it's

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<v Speaker 2>forecasting a sales decline of as much as twenty eight percent.

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<v Speaker 2>Prior to the attack, Chlorax had been expecting mid single

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<v Speaker 2>digit organic sales growth in the quarter.

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<v Speaker 3>Man AT and T's exploring options for its multi billion

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<v Speaker 3>dollar stake in Direct TV. AT and T Co owns

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<v Speaker 3>the PayTV provider with private equity firm TPG.

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<v Speaker 2>Nathan, thanks time now for a look at some of

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<v Speaker 2>the other stories making news around the world. For that,

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<v Speaker 2>we're joined by Bloomberg's John Tucker. John, Good morning, Yeah, Good.

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<v Speaker 11>Morning, Karen. A notorious group of hackers blamed for recent

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<v Speaker 11>breaches on major casino companies is also suspected of being

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<v Speaker 11>behind that recent cyber attack against Clorox that we just

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<v Speaker 11>heard about. Let's find out more on the attack from

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<v Speaker 11>Bloomberg's Charlie Pennett.

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<v Speaker 12>Sources tell Bloomberg officials suspect that Scattered Spider is responsible

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<v Speaker 12>for a breach that Clorox first disclosed in August. Bloomberg

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<v Speaker 12>News has previously reported that the same group, known for

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<v Speaker 12>its so called social engineering tactics, was tied to attacks

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<v Speaker 12>on Caesar's Entertainment an MGM Resorts International in recent weeks.

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<v Speaker 12>Scattered Spider hackers specialize in targeting call centers and it

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<v Speaker 12>help desks, impersonating employees to trick support staff into coughing

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<v Speaker 12>up information to gain access to accounts. In New York,

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<v Speaker 12>Charlie Pellett Bloomberg.

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<v Speaker 11>Radio, President Biden detailed nine billion dollars a new student

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<v Speaker 11>loan relief, saying it would provide a boost to the

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<v Speaker 11>US economy.

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<v Speaker 5>I've three millions of Americans from the crushing burden studentetamies.

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<v Speaker 5>They can go and get their lives in order. They

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<v Speaker 5>can think about buying a house, they can start a business,

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<v Speaker 5>they can be starting a family.

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<v Speaker 11>The Administrator's latest steps will bring relief for one hundred

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<v Speaker 11>and twenty five thousand borrowers through changes to programs intended

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<v Speaker 11>to aid public servants, Americans with disabilities, and low income

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<v Speaker 11>Ukraine says air defense forces down twenty four to twenty

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<v Speaker 11>nine drones launched by Russia from Crimea to attack southern

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<v Speaker 11>and central regions of the nation. Meantime, Turkey preparing to

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<v Speaker 11>host a third international gathering of national security advisors working

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<v Speaker 11>to build support for a peace summit that Ukraine wants

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<v Speaker 11>to hold this year. Secretary State Anthony Blinken and other

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<v Speaker 11>top officials from the Biden administration are in Mexico the

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<v Speaker 11>discussing shared security issues. Latest round of talks brings together Blincoln,

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<v Speaker 11>the Attorney General Merrick Garland, and the Homeland Security Secretary

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<v Speaker 11>Alejandro Maiorcis, among others. And Dubai has cemented its status

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<v Speaker 11>as the world's busiest market for luxury homes, with buyers

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<v Speaker 11>pouring one point five nine billion dollars into high end

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<v Speaker 11>properties during the third quarter. The property consultant Knight franks

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<v Speaker 11>as the number of sales for homes where ten million

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<v Speaker 11>dollars or more reached a record two hundred and seventy seven,

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<v Speaker 11>putting the emmert firmly ahead of cities like New York.

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<v Speaker 11>Global News twenty four hours a day, Power Blind more

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<v Speaker 11>than twenty seven hundred journalist and analysts in more than

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<v Speaker 11>one hundred twenty countries. I'm John Tucker, and this is Bloomberg.

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<v Speaker 3>Karen right, John.

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<v Speaker 2>Thanks. So we bring you news throughout the day here

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<v Speaker 2>on Bloomberg Radio. But now you can get the latest

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<v Speaker 2>news on demand whenever you wanted. Subscribe to Bloomberg News

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<v Speaker 2>Now to get the latest headlines at the click of

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<v Speaker 2>a button. Get informed on your schedule. You can listen

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<v Speaker 2>and subscribe to Bloomberg News Now on the Bloomberg Business app,

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<v Speaker 2>Bloomberg dot Com, plus apples, Spotify, and anywhere else you

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<v Speaker 2>get your podcasts. Time now for the Bloomberg Sports Update,

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<v Speaker 2>and here's John stash Hour.

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<v Speaker 13>John here, and they played best of three in the

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<v Speaker 13>Wildcard series and all four teams who won Game one

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<v Speaker 13>also won Game two, so all four series are over

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<v Speaker 13>in Swedes. That includes the Texas Rangers hadn't won a

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<v Speaker 13>postseason series since twenty eleven. They won seven to one

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<v Speaker 13>at Tampa Bay behind the pitching of Nathan Avaldi. They

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<v Speaker 13>outscored the Rays of the series eleven to one. Minnesota

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<v Speaker 13>moves on beating Toronto two to nothing, so the Blue

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<v Speaker 13>Jays only scored one run in the series. Sonny Gray

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<v Speaker 13>and five believers teaming on the shutout, and the Twins

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<v Speaker 13>get their first postseason series victory since two thousand and two.

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<v Speaker 13>In Game one, Arizona in Milwaukee trailed three nothing came

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<v Speaker 13>back to win sixty three. In Game two, Diamond back

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<v Speaker 13>to were down two nothing, won the game five to

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<v Speaker 13>two behind Zach Gallon, who was a seventeen game winner

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<v Speaker 13>in the regular season. In the Phillies beat the Marlins

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<v Speaker 13>seven to one. Aaron Nola went sevents, did not allow

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<v Speaker 13>a run only three hits. The division series begin on Saturday.

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<v Speaker 13>Texas will be in Baltimore, Minnesota will be in Houston,

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<v Speaker 13>Arizona will go to Los Angeles to play the Dodgers,

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<v Speaker 13>and the Phillies will be in Atlanta, NFL. A couple

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<v Speaker 13>of players who signed as free agents just a year

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<v Speaker 13>ago no longer with those teams. The Chargers have traded

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<v Speaker 13>in cornerback J. C. Jackson. He goes back to New England,

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<v Speaker 13>where he spent four years in one of Super Bowl

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<v Speaker 13>and was an All Pro, and Denver released pass rusher

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<v Speaker 13>Randy Gregory, he had formerly been with Dallas. The twenty

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<v Speaker 13>thirty World Cup is expected to take place for the

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<v Speaker 13>most part in Morocco, Spain, and Portugal, but also in

0:10:15.880 --> 0:10:19.120
<v Speaker 13>three other nations. John stashiew were Bloomberg.

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<v Speaker 6>Sports from coast to coast, from New York to San Francisco,

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<v Speaker 6>Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business app,

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<v Speaker 6>and Bloomberg dot Com. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning. I'm Nathan Hager. Republican Congressman Matt Gates of

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<v Speaker 3>Florida says he backs speakership bids by both representatives, Steve

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<v Speaker 3>Scalise and Jim Jordan. Gates tells Bloomberg's Joe Matthew and

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<v Speaker 3>Amrie Horder, and the person isn't as important as the

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<v Speaker 3>plan to cut government spending.

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<v Speaker 4>I'm for both of them right now. I'm eager to

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<v Speaker 4>hear their plans and their vision. But if the House

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<v Speaker 4>of Representatives goes from the stewardship of Kevin McCarthy to

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<v Speaker 4>either the stewardship of Jim Jordan or Steve Scalise, that's

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<v Speaker 4>going to come to the delight of many Conservatives and

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<v Speaker 4>certainly many of the Floridians that I represent. But it's

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<v Speaker 4>not just about the person. Both of these folks are

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<v Speaker 4>honorable man it's about the plan they have to reduce spending.

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<v Speaker 4>We sit a top of thirty three trillion dollar debt,

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<v Speaker 4>We're facing two trillion dollar plus annual deficits, and I

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<v Speaker 4>am worried about global dedollarization. I see what's going on

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<v Speaker 4>in the African Union where more of those countries are

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<v Speaker 4>using local currency when they're selling natural resources. I look

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<v Speaker 4>to a lot of the golf monarchies and energy producers

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<v Speaker 4>in the Middle East that are moving away from the

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<v Speaker 4>dollar and toward the One matter of fact, the United

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<v Speaker 4>Arab Emirates, Saudi Arabia and Iran just in August joined

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<v Speaker 4>the bricks system, the Brazil, Russia, India, China, South Africa

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<v Speaker 4>system to de dollarize. That with the latest Reuters survey

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<v Speaker 4>showing that economic analysts now believe that in twenty twenty

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<v Speaker 4>four you're really going to see a cooling off of

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<v Speaker 4>the dollar. So I believe we have done a lot

0:11:57.559 --> 0:11:59.080
<v Speaker 4>of creating stale plant.

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<v Speaker 14>A lot of critics do say that an expansion of bricks, though,

0:12:02.520 --> 0:12:05.640
<v Speaker 14>means it actually dilutes it. They cannot coalesce around anything,

0:12:05.679 --> 0:12:08.440
<v Speaker 14>and that actually helps the fact that the dollar remain

0:12:08.880 --> 0:12:13.160
<v Speaker 14>the primacy currency on the global stage.

0:12:12.840 --> 0:12:13.840
<v Speaker 3>I wonder.

0:12:14.120 --> 0:12:17.480
<v Speaker 4>I think that that is not a linear progression, right,

0:12:17.559 --> 0:12:22.120
<v Speaker 4>because as bricks becomes more institutionalized, you could see more

0:12:22.160 --> 0:12:24.760
<v Speaker 4>and more good. I mean, the real worry about bricks

0:12:24.800 --> 0:12:27.800
<v Speaker 4>is the movement of natural resources outside of the dollar

0:12:27.960 --> 0:12:30.840
<v Speaker 4>as the Global South continues to develop and pack an

0:12:30.880 --> 0:12:33.880
<v Speaker 4>even larger punch in the economy. You know, I think

0:12:33.880 --> 0:12:36.560
<v Speaker 4>that the downgrade from Fitch was largely driven by the

0:12:36.600 --> 0:12:39.280
<v Speaker 4>fact that there's no real backstop to spending. So here's

0:12:39.280 --> 0:12:41.360
<v Speaker 4>what we need, no matter who's the speaker. We need

0:12:41.400 --> 0:12:43.600
<v Speaker 4>a top line budget that at least in the House

0:12:43.600 --> 0:12:46.440
<v Speaker 4>of Representatives, returns to pre COVID spending levels. And then

0:12:46.480 --> 0:12:48.360
<v Speaker 4>we need to be able to have single subject spending

0:12:48.400 --> 0:12:52.480
<v Speaker 4>bills with open amendments, to have programmatic review of agency spending.

0:12:52.760 --> 0:12:54.480
<v Speaker 15>Well, Congress, well let's talk a little bit about what

0:12:54.559 --> 0:12:57.680
<v Speaker 15>just happened. Nobody's ever done this before. It was history

0:12:57.720 --> 0:13:01.240
<v Speaker 15>making the ouster of the speaker. We're told that you

0:13:01.240 --> 0:13:03.880
<v Speaker 15>are the least popular man in the House of Representatives,

0:13:03.960 --> 0:13:06.959
<v Speaker 15>or at least to the Republican Conference. In fact, just yesterday,

0:13:06.960 --> 0:13:10.360
<v Speaker 15>your Republican colleague from New York, Mike Lawler, suggested violence

0:13:10.400 --> 0:13:14.160
<v Speaker 15>against you in an interview right around this time yesterday.

0:13:14.520 --> 0:13:16.559
<v Speaker 15>I'd love for you to hear what he said.

0:13:16.520 --> 0:13:18.520
<v Speaker 3>And have you respond. Here's mister Lawler.

0:13:19.160 --> 0:13:21.160
<v Speaker 16>The only thing that I would have done differently is

0:13:21.240 --> 0:13:26.439
<v Speaker 16>flung it in the direction of one person. Look, he

0:13:26.520 --> 0:13:33.760
<v Speaker 16>absolutely epitomized the frustrations of the conference and the American people.

0:13:33.920 --> 0:13:36.040
<v Speaker 11>Is that person we need to get?

0:13:37.120 --> 0:13:37.240
<v Speaker 2>Oh?

0:13:37.360 --> 0:13:39.240
<v Speaker 16>Yeah, I would have hit him square between the eyes.

0:13:39.360 --> 0:13:41.000
<v Speaker 15>Who's going to hitch a square between the eyes with

0:13:41.040 --> 0:13:44.800
<v Speaker 15>the speaker's gavel? He was suggesting, Congressman, do you expect

0:13:44.800 --> 0:13:46.800
<v Speaker 15>to be expelled from the Republican Conference?

0:13:47.720 --> 0:13:47.920
<v Speaker 7>Oh?

0:13:48.200 --> 0:13:51.120
<v Speaker 4>I don't know. I think that that was a very

0:13:51.160 --> 0:13:53.880
<v Speaker 4>frustrated person who's having to come to grips with the

0:13:53.880 --> 0:13:56.520
<v Speaker 4>stages of grief. My mission is to ensure that the

0:13:56.520 --> 0:13:59.720
<v Speaker 4>House of Representatives runs better because the way we've been

0:13:59.800 --> 0:14:03.560
<v Speaker 4>right Washington, d C. For the last thirty years has

0:14:03.640 --> 0:14:05.920
<v Speaker 4>led us to a point where no one is really

0:14:05.960 --> 0:14:09.120
<v Speaker 4>responsible for the spending. We are backed up against shut

0:14:09.200 --> 0:14:12.760
<v Speaker 4>down politics. We are governed by crisis, and the biggest

0:14:12.760 --> 0:14:15.520
<v Speaker 4>problem is lawmakers have to take one up or down

0:14:15.600 --> 0:14:19.160
<v Speaker 4>vote on continuing resolutions and omnibus bills to either fund

0:14:19.320 --> 0:14:23.160
<v Speaker 4>or not fund the entire government that truncates the type

0:14:23.200 --> 0:14:27.480
<v Speaker 4>of thoughtful and serious analysis that we have to apply

0:14:27.560 --> 0:14:29.560
<v Speaker 4>to how the federal dollar is being spent at a

0:14:29.600 --> 0:14:32.320
<v Speaker 4>time like this. So I'm not much for political violence.

0:14:32.400 --> 0:14:34.960
<v Speaker 4>I don't want to hit anybody. If Mike Lawler comes

0:14:35.000 --> 0:14:37.400
<v Speaker 4>at me with a gavel, I'm not entirely sure that

0:14:37.440 --> 0:14:39.760
<v Speaker 4>would concern me. But that's not the direction I think

0:14:39.760 --> 0:14:41.120
<v Speaker 4>we ought to go. I think we ought to maybe

0:14:41.360 --> 0:14:44.000
<v Speaker 4>craft a budget before an attack strategy.

0:14:45.240 --> 0:14:47.880
<v Speaker 15>Well, you know, Kevin McCarthy says this was personal. He

0:14:48.000 --> 0:14:51.880
<v Speaker 15>spoke about this at length yesterday that he's seen texts,

0:14:51.920 --> 0:14:55.520
<v Speaker 15>he said involving an ethics probe against you. Congressman, what

0:14:55.600 --> 0:14:59.040
<v Speaker 15>do you know about the status of this investigation?

0:14:59.120 --> 0:15:00.840
<v Speaker 3>Have you been called to a peer personally?

0:15:01.720 --> 0:15:04.640
<v Speaker 4>No, I haven't. I've answered all the questions I've been asked,

0:15:04.640 --> 0:15:07.480
<v Speaker 4>and I am the most investigated man in the United

0:15:07.480 --> 0:15:11.040
<v Speaker 4>States Congress. I have been cleared by the FBI, the DOJ,

0:15:11.360 --> 0:15:14.040
<v Speaker 4>the Federal Elections Commission had a five to zero vote

0:15:14.080 --> 0:15:16.720
<v Speaker 4>to clear me, and the people who told vicious lies

0:15:16.760 --> 0:15:19.960
<v Speaker 4>about me two years ago are now sitting in federal

0:15:20.000 --> 0:15:23.240
<v Speaker 4>prison for being part of a criminal fraud scheme to

0:15:23.320 --> 0:15:27.000
<v Speaker 4>shake down my family, so I don't fear any investigation.

0:15:27.160 --> 0:15:29.840
<v Speaker 4>I have never asked Kevin McCarthy to assist me in

0:15:29.840 --> 0:15:34.119
<v Speaker 4>that matter. And sometimes people try to make policy failures

0:15:34.160 --> 0:15:38.480
<v Speaker 4>personal because those failures are so personally embarrassing to them.

0:15:38.760 --> 0:15:41.600
<v Speaker 4>So when Keviny McCarthy talks about this conflict being personal,

0:15:41.760 --> 0:15:44.960
<v Speaker 4>I think it's more projection than a sober analysis of

0:15:45.000 --> 0:15:45.840
<v Speaker 4>where the house stands.

0:15:48.160 --> 0:15:51.080
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