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Speaker 1: Live from the Bloomberg Interact at Berger Studios. Is this

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Speaker 1: Bloomberg Gay Break for Friday, January six three? Coming up

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Speaker 1: this hour, Kevin McCarthy's fights have become house Speaker drags

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Speaker 1: into a fourth day. Ball Street braces for its biggest

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Speaker 1: economic report of the new year. US authorities ramp up

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Speaker 1: the pressure on Sam bankman Fried's inner circle, and Samsung's

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Speaker 1: profit falls the most in over a decade. Thousands of

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Speaker 1: nurses at New York City hospitals are poised to strike

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Speaker 1: on Monday. Plus, today marks the two year anniversary of

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Speaker 1: the US Capitol Riot Michael Laaren. More ahead, I'm John

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Speaker 1: Stas Showard Sports. The NFL makes a decision on the

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Speaker 1: Bill's Bengals game the Rangers one in Montreal, losses for

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Speaker 1: the Devil's and Islanders. That's all train ahead on Bloomberg

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Speaker 1: Daybreak on Bloomberg eleven three on New York Bloomberg one, Washington,

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Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine

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Speaker 1: sixties and Francisco Sirius XAM one nineteen and around the

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Speaker 1: world Bloomberg Radio dot Com and via the Bloomberg Business.

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Speaker 1: At good Morning, I'm Nathan Hagar and I'm Karen. Moscow

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Speaker 1: and US Dock Index futures are little change this morning.

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Speaker 1: We check the markets all day long here on Bloomberg

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Speaker 1: with SNP and DAL futures both little change. Nasday futures

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Speaker 1: no dragging down a quarter percent or twenty eight points.

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Speaker 1: Tenure Treasury down five thirty seconds. You have three point

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Speaker 1: seven three per cent and the yield on the two

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Speaker 1: year four point four seven percent. Nathan, Karen. We'll have

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Speaker 1: more on markets and today's jobs report in just a minute,

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Speaker 1: but first we are heading into the fourth day of

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Speaker 1: the new Congress and the House remains without one key

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Speaker 1: job filled. That would be speaker. Republican leader Kevin McCarthy

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Speaker 1: is still shy the votes needed to take the gavel,

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Speaker 1: and Amy Morris has the latest from our Bloomberg newsroom

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Speaker 1: in Washington that's adjourned last night after a historic eleventh vote,

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Speaker 1: about twenty Republicans still refusing the cast their ballots for McCarthy,

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Speaker 1: saying they want change in Washington. McCarthy has already agreed

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Speaker 1: to a rules change allowing just one member to call

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Speaker 1: for a vote to oust the sitting speaker. Andy agreed

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Speaker 1: to allow for more members of the Freedom Caucus to

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Speaker 1: serve on the House Rules Committee, but so far. Matt

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Speaker 1: Rosedale of Montana says it's not enough. We need to

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Speaker 1: have change. We need to fix this broken system. Republican

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Speaker 1: Congressman elect Mike Lawler of New York says the party

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Speaker 1: can't let a small group of members dictate terms for

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Speaker 1: everyone else. The Freedom Caucus thought that Kevin's support would

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Speaker 1: start to fold, uh, and that has not happened. House

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Speaker 1: lawmakers reconvene at noon today in Washington. I'm Amy Morris,

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Speaker 1: Bloomberg Daybreak. All right, Amy, thank you. It will be

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Speaker 1: following the next round of votes throughout the day here

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Speaker 1: on Bloomberg Radio. Meantime, another major event in Washington takes

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Speaker 1: place at eight thirty am Wall Street time. That's when

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Speaker 1: the December JOMPS report is released. Economy is forecast again

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Speaker 1: of two hundred two thousand jobs and an unemployment rate

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Speaker 1: holding study at three point seven percent. Here with Morris,

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Speaker 1: Bloomberg Economics corresponded. Michael McKee, economist, think hiring will slow

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Speaker 1: dramatically and unemployment will jump higher. Just not yet. Even

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Speaker 1: though the Fed has been raising rates aggressively, it hasn't

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Speaker 1: slowed the economy enough to affect the labor market. FED

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Speaker 1: officials say that shows no recession is imminent. They also

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Speaker 1: worry it means continued inflation pressure. There are not enough

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Speaker 1: workers for open jobs, which means employers have to raise wages.

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Speaker 1: That's particularly true for service industries, and that makes December

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Speaker 1: service industry jobs and earnings key numbers for FED officials

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Speaker 1: as they decide how high they have to push interest rates.

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Speaker 1: Michael McKee, Bloomberg, Gabriak, and Mike the Fed will be

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Speaker 1: paying close attention to today's jobs reports. St. Louis President

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Speaker 1: James Bullard says interest rates are getting close to a

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Speaker 1: level that could be high enough to bring down inflation.

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Speaker 1: The point of this is that we've gone all the

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Speaker 1: way back now to the pre inflation shock level of

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Speaker 1: inflation expectations. UH macro theories tell us that that boat

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Speaker 1: is very well for the future of an actual inflation.

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Speaker 1: So this is a good signal for disinflation in St. Louis.

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Speaker 1: FED President Jim Bullard is one of the more hawkish

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Speaker 1: members of the FED, but he is not a voting

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Speaker 1: member on the f o MC this year. Still, Nathan,

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Speaker 1: higher interest rates are not yet having a major impact

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Speaker 1: on the economy. And that's the view from Carlyle Managing

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Speaker 1: Director and head of Global Research Jason Thomas. The economy

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Speaker 1: seems to be heading for an iceberg in the form

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Speaker 1: of higher interest rates. Those higher interest rates have really

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Speaker 1: not taken effect as yet for most borrowers. It's really

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Speaker 1: the December nineteen reference date. So as of Q one

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Speaker 1: three floating rate corporate borrowers are going to face UH

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Speaker 1: debt service costs that are about fifty to sixty higher

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Speaker 1: than they experienced just six months ago. Carlyles Jason Thomas

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Speaker 1: expects the Fed to raise rates by twenty five basis

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Speaker 1: points at each of its next two meetings. Have you

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Speaker 1: that's in line with expectations on the street. Well. The

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Speaker 1: prospect of higher rates Karen helped send stocks lower yesterday.

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Speaker 1: All three major indexes lost at least one percent after

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Speaker 1: hiring numbers surpassed estimates in the A, d P, and

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Speaker 1: jobless claims, reports Sam Stovall, as chief investment strategist at

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Speaker 1: c f R A. It seems as if we are

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Speaker 1: heading into three the way a lot of strategists have

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Speaker 1: been predicting where it's going to be A tale of

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Speaker 1: two halves, where the first half is likely to be

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Speaker 1: challenging with high volatility, retest of the October low, maybe

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Speaker 1: even a new low set. But then investors look across

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Speaker 1: the valley and we start to see a recovery in

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Speaker 1: the second half. C A. Sam Stovall says the FED

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Speaker 1: could pivot and start cutting rates around December. Well. Turning

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Speaker 1: to the ft X saga now, Nathan us authorities are

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Speaker 1: renting up pressure on the inner circle of fd X

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Speaker 1: co founder Sam Bankman Freed, and we get the latest

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Speaker 1: live at Bloomberg Steve Rappaport at Steve good Morning, Good morning, Karen,

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Speaker 1: and Nathan. The plot thickens as prosecutors turn their attention

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Speaker 1: to another associative, Bankman Freed. They're investigating former ft X

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Speaker 1: engineering director ni Shot Singh and what role, if any,

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Speaker 1: he played in the crypto company's demise. Singh has not

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Speaker 1: been accused of wrongdoing, and it's unclear if he's cooperating.

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Speaker 1: Prosecutors already have two people from SPFS Orbit in their corner,

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Speaker 1: Caroline Ellison and Gary Wang, pled guilty to fraud and

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Speaker 1: are working with the government. The question now, will sing

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Speaker 1: also sing live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Okay, Steve,

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Speaker 1: thank you. Turning to earnings now, we've got a downbeat

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Speaker 1: assessment from Samsung Electronics. Overnight profit fell by the most

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Speaker 1: and more than a decade, in the sign that the

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Speaker 1: economic slowdown maybe hurting electronics demand more than expected. Samsung's

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Speaker 1: operating profit plunged sixty cent thanks to week demand for

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Speaker 1: memory ships, smartphones and displays, and that holiday travel meltdown

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Speaker 1: is prompting Southwest Airlines to revive its financial outlook before

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Speaker 1: reporting earnings. The airline canceling almost sixteen thousand flights over

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Speaker 1: eight days around the holidays. Now, Southwest says it is

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Speaker 1: assessing the cost of flight disruptions and compensation to passengers

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Speaker 1: for hotels and meals. Local headlines straight ahead, and this

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Speaker 1: is Bloomberg, thanksparing its forty three degrees in Central Park.

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Speaker 1: Can have some scattered showers this morning, but they should

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Speaker 1: end by this afternoon. We'll top out near fifty degrees

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Speaker 1: mid thirties tonight ahead of a cooler but nice weekend.

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Speaker 1: It's time to look at some of the other stories

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Speaker 1: making news in New York and around the world. For

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Speaker 1: that we bring in Bloomberg's and Michael bar Happy Friday, Michael,

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Speaker 1: Happy Friday to you, Nathan. Thousands of New York City

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Speaker 1: nurses are poised to strike on Monday. They are protesting

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Speaker 1: staffing levels they say create unsafe conditions for patients. Five institutions,

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Speaker 1: including Mount Sinai Health Systems, are still in talks toward

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Speaker 1: a resolution, but about ten thousand members of the New

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Speaker 1: York State Nurses Association three others have reached tentative agreements.

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Speaker 1: Today it marks two years since the January six attack

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Speaker 1: on the US Capitol. Among the victims as Capitol police

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Speaker 1: officer Brian Sicknik, his longtime partner is suing former President

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Speaker 1: Trump and two people in the crowd that day for

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Speaker 1: his death. Today and award will also be presented to

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Speaker 1: Sicknecks family. Another officer who was at the Capitol that

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Speaker 1: day was Harry Dunn, who says he suffers from PTSD.

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Speaker 1: Dunn says, all eyes are on the Justice Department. They're

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Speaker 1: the ones who can bring forth accountability. There were criminal

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Speaker 1: things that the former president has done. I don't see

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Speaker 1: how you cannot hold him accountable for that day. Officer

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Speaker 1: Dun's full interview while their Sunday on ABC's This Week

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Speaker 1: Heard on Bloomberg, Attorney General Mary Garland says over four

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Speaker 1: people pleaded guilty the federal charges and the riot. New

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Speaker 1: evidence in the killings of four University of Idaho students

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Speaker 1: has come to light. A newly released half of David

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Speaker 1: reveals police identify the suspect, twenty eight year old Brian Coburger,

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Speaker 1: by tracking his car on surveillance cameras. Coburger made his

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Speaker 1: first court appearance in Idaho yesterday to face four charges

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Speaker 1: a first degree murder. He did not inter aptly and

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Speaker 1: was ordered hell without bail. Russian President Vladimir Putin's proposed

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Speaker 1: thirty six hours cease fire drawn a cold shoulder from

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Speaker 1: the US and Ukraine, Bloomberg said Baxter as the story,

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Speaker 1: President Joe Biden says hypocrisy. I'm reluctant respond anything. Prutin says,

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Speaker 1: I found it interesting. He was ready to um bomb

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Speaker 1: hospitals and nurseries and hum churches, and he says Plutin

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Speaker 1: is just trying to find some oxygen. Biden also says

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Speaker 1: the US, Germany and France are sending some heavy artillery

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Speaker 1: Ukraine that will arrive within months, in addition to the

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Speaker 1: Patriot missiles in San Francisco. I'm at Baxter. Bloomberg Daybreak

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Speaker 1: Global emes twenty four hours a day on air and

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Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven

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Speaker 1: hundred journalists and analysts more than a hundred twenty countries.

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Speaker 1: I'm Michael Barr. This is Bloomberg Naked. Thank you, Michael.

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Speaker 1: Time now for our Bloomberg Sports Update. Fortify twice stay

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Speaker 1: downey for that, we bring in John stash Our. Good morning, John,

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Speaker 1: Your morning, Nathan. Three nights after the Bills and Bengals

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Speaker 1: stopped playing in Cincinnati due to Tomorrow Hamlin going into

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Speaker 1: cardiac arrest, the NFL made the decision not to resume

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Speaker 1: the game. Both teams will play Sunday. Finished the regular

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Speaker 1: season playing sixteen games, with everyone else having played seventeen.

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Speaker 1: Both teams are going to the playoffs. Both had a

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Speaker 1: chance to earn the one seed and the first round

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Speaker 1: by If Kansas City wins tomorrow, the Chiefs are assured

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Speaker 1: of finishing with the best win percentage. There are reports

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Speaker 1: the NFL may announced today measures to diminish the significance

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Speaker 1: of that. Meanwhile, we heard yesterday for the first time

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Speaker 1: from Hamlin's doctor in Cincinnati, and the news from Timothy

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Speaker 1: Pritz was terrific. We would like to share that there

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Speaker 1: has been substantial improvement and is conditioned over the past

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Speaker 1: twenty four hours. We had significant concern um about him

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Speaker 1: after the injury, after the event that happened on the field,

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Speaker 1: but he is making substantial progress, Pritz said. The first

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Speaker 1: question Hamlin asked was whether the Bills had won the game.

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Speaker 1: Local hockey Rangers won four one at Montreal. The Islanders

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Speaker 1: lost for two. In Edmonton, Devils lost to St. Louis

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Speaker 1: five three. NHL named some of the All Stars for

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Speaker 1: the game next month, one from each team in the

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Speaker 1: range of rep goalie Egorsister Can also named the Aisles

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Speaker 1: Brock Nelson and the Devil's Jack Use College James Ruptors

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Speaker 1: was coming off that when at top rank produced Scarlet

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Speaker 1: Knights came home and beat Maryland sixty four to fifty,

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Speaker 1: held the terms the seventeen first half points. NBA to

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Speaker 1: Night Nixon. Toronto next visit New Orleans second time. This week.

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Speaker 1: Yankees divided a veteran baseball front office exact to assist

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Speaker 1: GM Brian Cashman first was Brian Stabing and now former

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Speaker 1: mex gm omar Maniah John Stashward Bloomberg Sports. Nathan, Thank

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Speaker 1: you John, and the Bloomberg Sports Report was brought to

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Speaker 1: you by Audie. Don't let someone else drive off in

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Speaker 1: the outie model you've always wanted. Visit your local tri

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Speaker 1: state autie dealer to get behind the wheel of yours today,

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Speaker 1: or visit autie Offers dot com for more information. The

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Speaker 1: latest on the speakership fight on Capitol Hill. Just to

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Speaker 1: head first, futures trading flat, SMP futures up a point down,

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Speaker 1: futures up twenty two, NASTAC futures down fourteen points ten.

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Speaker 1: Your treasury yield right now three point seven three percent.

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Speaker 1: Live from coast to coast, from New York to San Francisco,

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Speaker 1: Boston to Washington, d C. Nationwide on Syrius examp of

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Speaker 1: Bloomberg Business app and Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 1: Good morning, I'm Nathan Hagarn. While we wait for the

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Speaker 1: December payrolls report on this job's Friday, there is still

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Speaker 1: one key position on Capitol Hill that has yet to

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Speaker 1: be filled that would be Speaker of the House. We're

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Speaker 1: heading into a fourth day of the D eight Congress,

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Speaker 1: and at this point it is still tough to say

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Speaker 1: whether lawmakers can resolve the mismatch between Kevin McCarthy, the

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Speaker 1: House GLP leader, and those twenty or so Republicans standing

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Speaker 1: in the way of his gavel. Once again, we're joined

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Speaker 1: by Greg Valier Live this morning, chief US policy strategist

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Speaker 1: at a GF Investments. Uh. Is it starting to feel

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Speaker 1: like Groundhog Day? Where you said, Greg, you bet, Mason,

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Speaker 1: it's sort of like the inmates have taken over the asylum,

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Speaker 1: and unfortunately this could drag on for many, many more days.

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Speaker 1: I think you wrote a note earlier this week talking

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Speaker 1: about the extraordinary concessions that Kevin McCarthy has made to

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Speaker 1: try to hold on to actually get the gavel. Are

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Speaker 1: there any other concessions he can make at this point? No,

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Speaker 1: there's not much else. I mean, he's agreed to humiliating

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Speaker 1: restraints on the role of a speaker, and the irony here, Nathan,

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Speaker 1: is that moderate Republicans in the House are a guest

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Speaker 1: and they may turn against McCarthy. A lot of moderates

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Speaker 1: we're saying late yesterday that they could never accept this

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Speaker 1: kind of concession. The other irony is that even with

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Speaker 1: this concession, there's a hardcore of four or five very

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Speaker 1: adamant House Conservatives who would not vote for McCarthy under

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Speaker 1: any circumstances. So I don't see where the concession gets

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Speaker 1: him other than diminished support among moderates. Well, let's get

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Speaker 1: to your first point there about moderate Republicans potentially providing

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Speaker 1: a backlash against McCarthy for the concessions he's made. Uh,

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Speaker 1: let me pin you down a little bit on that.

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Speaker 1: Are you actually hearing from certain moderates who are saying

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Speaker 1: that they may withhold or withdraw their support for McCarthy

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Speaker 1: as this process plays out. I'm not sure they're there yet.

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Speaker 1: I think they would like to get some assurance that, uh,

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Speaker 1: this isn't as radical as it looks. But to answer

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Speaker 1: your question, yes, there are some who are willing to

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Speaker 1: withhold their support if one vote, if one lone House

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Speaker 1: member says I want to try to remove the speaker,

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Speaker 1: that's that's just no way to run a railroad. And

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Speaker 1: when it comes to those four or five seeming members

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Speaker 1: who just aren't going to vote for McCarthy under any circumstance,

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Speaker 1: does that lead to an opening for someone else's potential

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Speaker 1: alternative to step forward. Well, A good point. There's been

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Speaker 1: a lot of other names outed this week, as you know,

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Speaker 1: including Jim Jordan's and especially Steve Scalise, but Skalis, who

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Speaker 1: is quite popular in the House, is part of the leadership,

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Speaker 1: and I think those four or five holdouts probably would

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Speaker 1: would hold it against him. There are all sorts of

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Speaker 1: other rumors about maybe a bipartisan deal with the Democrats,

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Speaker 1: which I think is quite unlikely, maybe floating the name

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Speaker 1: of another possible Canada, maybe changing the rule you need

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Speaker 1: two hundred eighteen votes, maybe reducing that by having some

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Speaker 1: members stay off the floor, all sorts of hail Mary's.

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Speaker 1: But I think the bottom line is that they're still

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Speaker 1: not there, and I don't think they'll get a deal today.

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Speaker 1: And we've talked before about what the potential this could

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Speaker 1: mean for the debt ceiling fight later on this year,

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Speaker 1: getting appropriations passed later on this year as well, if

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Speaker 1: we continue to see this kind of fractiousness. We're starting

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Speaker 1: to hear as well from some lawmakers who are saying

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Speaker 1: this stalemate could potentially risk US national security because Congress

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Speaker 1: can't move till they get this matter resolved is is

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Speaker 1: that taking things too far? Is there something to that? No,

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Speaker 1: there's something to that. I mean it's easy to say

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Speaker 1: Congress doesn't matter, but no, there are things that are

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Speaker 1: really important. In the short term. What if there's a

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Speaker 1: foreign policy crisis that needs immediate funding. What if the

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Speaker 1: flooding continues in California it's quite severe as you know,

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Speaker 1: maybe there's a need for aid to California. And the

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Speaker 1: long term, the issue is going to be budget stuff.

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Speaker 1: It will be the death ceiling, it'll be a possible

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Speaker 1: default crisis. These are serious issues and if the if

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Speaker 1: the House is this NEWTD, it's going to be difficult

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Speaker 1: to deal with those issues. Does this have any implications

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Speaker 1: for in terms of the politics, the way the parties

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Speaker 1: are viewed after this fight, It will be interesting to

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Speaker 1: see the polls. I haven't seen any of this week.

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Speaker 1: I suspect will be sort of a pox on both

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Speaker 1: your houses mentality, but in in to be you're realistic,

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Speaker 1: I mean, this will blow up on Republicans. I think

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Speaker 1: they are looking pretty bad, especially compared to Nancy Pelosi,

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Speaker 1: who did a pretty good job as House Speaker. So no,

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Speaker 1: I think as we go into the election, it would

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Speaker 1: hurt Republicans in the House. The Senate is different. Of

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Speaker 1: the seats up in the Senate favor the Republicans in

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Speaker 1: this cycle, but I think the House could get a

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Speaker 1: major pushback from voters if this is not resolved. And

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Speaker 1: we'll see if We'll be checking back with you next

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Speaker 1: week if this isn't resolved. Thanks as always for your time,

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Speaker 1: Greg Valier, Chief US policy strategist at a GF Investments.

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Speaker 1: The House gets back in session once again. Noon Wall

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Speaker 1: Street time for day four, round twelve of voting for

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Speaker 1: the Speaker of the House. SMP futures right now up

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Speaker 1: three points, SOUND futures up thirty nine. NAS Deck futures

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Speaker 1: down four points as investors await December payrolls. This is

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Speaker 1: Bloomberg Markets headlines and breaking news twenty four hours a

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Speaker 1: day at Bloomberg dot Com, the Bloomberg Business Outland at

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Speaker 1: Bloomberg Quick Tape. This is a Bloomberg Business Flash and

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Speaker 1: I'm Karen Moscow and US knock Index futures are little

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Speaker 1: change as traders race for US jobs numbers do later

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Speaker 1: that will help shart the path forward for Federal Reserve

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Speaker 1: monetary tightening. We checked the markets all day long here

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Speaker 1: on Bloomberg SMP futures are a little change down, futures

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Speaker 1: up a tenth of a percent or thirty one points,

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Speaker 1: and NASDAG future is now little change ten. Your treasury

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Speaker 1: down four thirty seconds. You have three point seven three

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Speaker 1: percent they yield on the two year four point four

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Speaker 1: seven percent. NIMEX screwed oil is up one percent or

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Speaker 1: seventy four cents at seventy four dollars forty one cents

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Speaker 1: of barrel, and the euro one point oh five one

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Speaker 1: two against the dollar. And that's a Bloomberg business flash.

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Speaker 1: Now here's Michael Barr with Moore on what's going on

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Speaker 1: around the world. Michael, good morning, Good morning, Karen dou

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Speaker 1: His house reconvenes later today. As the speaker fight drags

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Speaker 1: into a fourth day, Kevin McCarthy is trying to strike

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Speaker 1: an agreement with GOP dissidents. A major storm that slammed

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Speaker 1: into California has led to flooding down the trees and

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Speaker 1: power outages across the state. Doctors say the mar Hamlin

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Speaker 1: is beginning to awaken and is showing substantial improvement. The

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Speaker 1: Buffalo Bill Safety went into Carniac arrest during Monday Night

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Speaker 1: football doctor Say Hamblin's first question was did we win? Meanwhile,

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Speaker 1: the NFL canceled the game between the Bills and Bengals.

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Speaker 1: In hockey, Devils and Islanders lost, Ranges Bruins and Capitols

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Speaker 1: one in the NBA, the Celtics one. Global News twenty

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Speaker 1: four hours a day on air and on Bloomberg Quick Take,

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Speaker 1: powered by more than twenty seven hundred journalists and analysts

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Speaker 1: more than a hundred twenty countries. Michael Barr and this

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Speaker 1: is Bloomberg. Nathan love to hear that from mar Hamlin.

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Speaker 1: Did we win? What a great partnersis? Thank you, Michael.

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Speaker 1: It's on Wall Street, Nathan Hagar and this is Bloomberg Daybreak.

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Speaker 1: When you hear someone say things are moving toward an

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Speaker 1: iceberg usually doesn't mean anything good. And Carlisle, head of

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Speaker 1: Global Research, Jason Thomas says that's where he thinks the

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Speaker 1: US economy is headed. Thomas expects corporations to remain under

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Speaker 1: pressure as the Federal Reserve keeps hiking interest rates. It's

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Speaker 1: got the details from Jason Thomas. Now he spoke with

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Speaker 1: Bloomberg's David and Glass and Evon Man. Can they use

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Speaker 1: economy of void to recession. What do you think? Maybe,

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Speaker 1: but but it does seem unlikely. And that's really because

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Speaker 1: of the the the economy seems to be heading for

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Speaker 1: an iceberg in the form of higher interest rates. Those

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Speaker 1: higher interest rates have really not taken effect as yet

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Speaker 1: for most borrowers. It's really the December nineteen reference date.

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Speaker 1: So as of Q one floating rate, corporate borrowers are

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Speaker 1: going to face UH debt service costs that are about

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Speaker 1: fifty to six higher than they experience just six months ago.

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Speaker 1: So I do think we're going to see increased levels

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Speaker 1: of financial distress. Um, I'm speculative, great barrow. And of

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Speaker 1: course that's going to cause a lot of management teams

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Speaker 1: to change their behavior. Rather than a growth orientation, they're

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Speaker 1: going to start to think about cost cutting and and

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Speaker 1: this seems to me precisely how a recession gets propagated.

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Speaker 1: And then, you know, you still have the likes of

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Speaker 1: some FED speakers like Estra George, you know, speaking and saying,

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Speaker 1: you know, she aspects the FED fundraise to be over

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Speaker 1: five percent and stay there for much of four What

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Speaker 1: with forced the FED to pivot? Then do you think, Jason,

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Speaker 1: you know, all this talk of a pivot really seems

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Speaker 1: so premature. As you alluded, I think that the FED

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Speaker 1: right now is very concerned that inflation is going to

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Speaker 1: remain stuck above four percent. Inflation has come down, obviously,

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Speaker 1: price pressures have eased, the supply chain crisis is effectively over,

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Speaker 1: but you still have lots of reasons to again fear

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Speaker 1: that that inflation is going to remain elevated relative to

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Speaker 1: the two percent target. First, you have wage growth at

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Speaker 1: low skill levels. There there is still significant labor shortages

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Speaker 1: low skill levels, earnings are growing at about a seven

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Speaker 1: percent annualized rate overall wage growth, again consistent with roughly

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Speaker 1: four percent inflation. And then, I think most consequentially, you

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Speaker 1: still have management teams that got a taste for pushing

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Speaker 1: price through over the past couple of years and are

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Speaker 1: still looking to increase prices where possible, And I think

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Speaker 1: really the only way for the FED to deter those

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Speaker 1: additional rounds of price increases is to impress upon management

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Speaker 1: teams that those price increases are going to result in

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Speaker 1: lost sales or lost market share. And and again the

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Speaker 1: only way to do that is to further restraint demand.

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Speaker 1: So on the whole yes, I do expect another basis

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Speaker 1: points at the February first meeting, perhaps another basis points thereafter,

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Speaker 1: but that policy rate five five and a quarter percent

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Speaker 1: perhaps is going to be sustained into and I think

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Speaker 1: that's where markets are going to be very surprised that

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Speaker 1: that could mean some additional upside for the dollar in

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Speaker 1: the new term, but then also again more financial distress

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Speaker 1: among speculative grade borrowers as they're forced to pay these

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Speaker 1: higher floating rate interest costs for for a longer period

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Speaker 1: than they anticipate. And that's the head of Global Research

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Speaker 1: at the Carlisle Group, Jason Thomas, speaking with Bloomberg's David

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Speaker 1: Englais and Avon Man. You can catch that full conversation

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Speaker 1: on Bloomberg dot com and always on the Bloomberg terminal.

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Speaker 1: SMP Future is right now up one point ahead of

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Speaker 1: December Jobs, Dow futures up twenty one, nanastack futures down

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Speaker 1: nine points ten, your treasuries down five thirty seconds, the

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Speaker 1: yield three point seven three percent, yield on the two

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Speaker 1: year four point four seven percent, name X cruise up

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Speaker 1: nine percent at seventy four dollars thirty five cents of

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Speaker 1: Barrel Comics gold is little change, down ninety cents eighteen

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Speaker 1: thirty nine seventy announced. Up next, the latest on Kevin

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Speaker 1: McCarthy's seemingly unending bid to be House speaker, plus what

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Speaker 1: to expect from the December payrolls report that's coming up

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Speaker 1: in thirty seconds. First, I'll look at your Bloomberg weather forecast.

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Speaker 1: Scattered showers across the Tri State area today, They'll be

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Speaker 1: tapering off this afternoon. We'll find temperatures between forty five

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Speaker 1: and fifty Later today, it'll become partly cloudy. Overnight low

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Speaker 1: thirty five downtown, twenties in the suburbs, partial sunshine for

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Speaker 1: tomorrow heiste forty five. It will be clear thirty to

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Speaker 1: thirty five Tomorrow night. Sunday morning sun afternoon clouds in

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Speaker 1: higher forty to forty five. I'm Rob Carolyn with your

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Speaker 1: three day forecast. I'm Bloomberg eleven three oh broadcasting live

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Speaker 1: from the Bloomberg Interactive Broker Studio in New York. Bloomberg

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Speaker 1: elving three to Washington, d C. Bloomberg to Boston, Bloomberg

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00:24:37,119 --> 00:24:40,280
Speaker 1: one oh six one to San Francisco, Bloomberg nine sixty

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00:24:40,400 --> 00:24:43,639
Speaker 1: to the country Sirius XM H one nine and around

431
00:24:43,680 --> 00:24:47,600
Speaker 1: the globe, the Bloomberg Business and Bloomberg Radio dot com.

432
00:24:47,600 --> 00:24:56,320
Speaker 1: This is Bloomberg Daybreak and it's coming up to five

433
00:24:56,359 --> 00:24:59,440
Speaker 1: thirty on Wall Street. Good morning. I'm Karen Moscow, I'm

434
00:24:59,480 --> 00:25:01,480
Speaker 1: Nathan hey Ger in Blueberg Daybreak is brought to you

435
00:25:01,560 --> 00:25:04,439
Speaker 1: by Innovation Refunds to see if your small or medium

436
00:25:04,440 --> 00:25:07,000
Speaker 1: sized business could be missing out on an opportunity. Was

437
00:25:07,040 --> 00:25:11,800
Speaker 1: your business impacted by COVID nineteen and one, It may

438
00:25:11,880 --> 00:25:15,480
Speaker 1: qualify for the employee Retention credit. The professionals that Innovation

439
00:25:15,560 --> 00:25:18,680
Speaker 1: Refunds can help your business recover from the pandemic. See

440
00:25:18,760 --> 00:25:21,440
Speaker 1: how much could be waiting for your business at get

441
00:25:21,480 --> 00:25:25,000
Speaker 1: Refunds dot com. And we're nearly four hours away from

442
00:25:25,040 --> 00:25:26,760
Speaker 1: the open of US trading. Let's get you up to

443
00:25:26,800 --> 00:25:28,480
Speaker 1: date on the news you need to know at this hour.

444
00:25:28,600 --> 00:25:31,720
Speaker 1: We begin in Washington, where eleven rounds of voting have

445
00:25:31,840 --> 00:25:35,320
Speaker 1: failed to elect a House speaker. Republican Leader Kevin McCarthy

446
00:25:35,480 --> 00:25:38,119
Speaker 1: is still shy of the votes he needs. Former New

447
00:25:38,200 --> 00:25:41,560
Speaker 1: York Congressman and Democratic Concuss chair Joe Crowley says the

448
00:25:41,640 --> 00:25:45,840
Speaker 1: process is reflecting poorly on Republicans. What it really is

449
00:25:46,119 --> 00:25:50,119
Speaker 1: demonstrating is that the functionality of the Republican Conference the

450
00:25:50,200 --> 00:25:53,040
Speaker 1: end up second anniversary of January six. Do you now

451
00:25:53,119 --> 00:25:57,719
Speaker 1: have members of the Republican Conference who actually supported that event.

452
00:25:57,920 --> 00:26:00,280
Speaker 1: I don't think it's a visual that the Republicans really one,

453
00:26:00,359 --> 00:26:03,040
Speaker 1: but it seems it's when they're gonna get farmer. Congressman

454
00:26:03,119 --> 00:26:05,600
Speaker 1: Joe Crowley was a guest on Bloomberg. Sound On with Joe.

455
00:26:05,640 --> 00:26:08,280
Speaker 1: Matthew catched the show weekdays at five pm Eastern on

456
00:26:08,320 --> 00:26:11,240
Speaker 1: Bloomberg Radio. Well, Karen, Investors have their eyes on DC

457
00:26:11,440 --> 00:26:13,760
Speaker 1: this morning. With the Labor Department set to release December

458
00:26:13,840 --> 00:26:16,679
Speaker 1: Jobs Report about three hours from now, stay with us

459
00:26:16,680 --> 00:26:19,679
Speaker 1: for complete coverage of the report, followed by an interview

460
00:26:19,680 --> 00:26:22,360
Speaker 1: with Labor Secretary Marty Walsh that's coming up around nine

461
00:26:22,960 --> 00:26:25,960
Speaker 1: am Wall Street Time. Well, Nathan, A. Job's report won't

462
00:26:25,960 --> 00:26:29,000
Speaker 1: fully reveal how interest rates are impacting the labor market,

463
00:26:29,040 --> 00:26:33,200
Speaker 1: but Carlyle, head of Global Research, Jason Thomas says investors

464
00:26:33,200 --> 00:26:35,560
Speaker 1: need to gear up for some economic pain on the

465
00:26:35,600 --> 00:26:39,120
Speaker 1: horizon fire. Interest rates have really not taken effect as yet.

466
00:26:39,320 --> 00:26:43,280
Speaker 1: We're going to see increased levels of financial distress and

467
00:26:43,320 --> 00:26:45,320
Speaker 1: of course, that's going to cause a lot of management

468
00:26:45,320 --> 00:26:47,920
Speaker 1: teams to change their behavior. They're going to start to

469
00:26:47,960 --> 00:26:51,080
Speaker 1: think about cost cutting. Car Lyles. Jason Thomas says he

470
00:26:51,160 --> 00:26:54,000
Speaker 1: expects the FED to raise rates twenty five basis boys

471
00:26:54,040 --> 00:26:56,600
Speaker 1: at each of its next two meetings, and as rates

472
00:26:56,600 --> 00:26:59,760
Speaker 1: climbcarent St. Louis FED President James Bullard says they're approaching

473
00:26:59,800 --> 00:27:03,359
Speaker 1: a well that could reduce inflation. Speaking yesterday, Bullard stopped

474
00:27:03,359 --> 00:27:05,359
Speaker 1: short of it decating how high he wants rates to

475
00:27:05,400 --> 00:27:08,080
Speaker 1: go right now, market surprising in a peak FED funds

476
00:27:08,119 --> 00:27:10,800
Speaker 1: rate of five percent this summer. Let's turn to the

477
00:27:10,800 --> 00:27:13,640
Speaker 1: f t X saga now, Nathan, US authorities are ramping

478
00:27:13,680 --> 00:27:16,399
Speaker 1: up pressure on the inner circle of FTX co founder

479
00:27:16,480 --> 00:27:19,520
Speaker 1: Sam Bankman, Freed, and Bloombergy. Steve Rappaport joins US Live

480
00:27:19,560 --> 00:27:22,480
Speaker 1: with that story. Good morning Steve, Good morning Karen and Nathan.

481
00:27:22,640 --> 00:27:25,640
Speaker 1: A new name emerges in the case against f B SPF.

482
00:27:25,680 --> 00:27:29,880
Speaker 1: Prosecutors are focusing on former ft X engineering director Nishad Singh.

483
00:27:29,920 --> 00:27:32,080
Speaker 1: He's not accused of wrongdoing at this time, but if

484
00:27:32,080 --> 00:27:34,480
Speaker 1: authorities determined Singh played a role in the collapse of

485
00:27:34,480 --> 00:27:36,960
Speaker 1: the company, a person familiar with the matter, says he

486
00:27:37,000 --> 00:27:40,360
Speaker 1: could be charged later this month. Prosecutors already secured plea

487
00:27:40,440 --> 00:27:43,040
Speaker 1: deals with two other associates of bankman Freed. He pled

488
00:27:43,040 --> 00:27:45,200
Speaker 1: guilty this week two or not guilty rather to eight

489
00:27:45,200 --> 00:27:48,000
Speaker 1: federal counts and will stand trial in October. Live in

490
00:27:48,040 --> 00:27:51,040
Speaker 1: New York, I'm Steve Rappaport Bloomberg Daybreak. All right, Steve,

491
00:27:51,080 --> 00:27:53,800
Speaker 1: thank you, and again, futures are little change this morning.

492
00:27:53,840 --> 00:27:57,200
Speaker 1: Straight ahead, your latest local headlines, plus a check of sports.

493
00:27:57,640 --> 00:28:04,480
Speaker 1: And this is Bloomberg in Science five thirty one on

494
00:28:04,520 --> 00:28:06,600
Speaker 1: Wall Street and Michael Bars here with Laura on what's

495
00:28:06,640 --> 00:28:08,560
Speaker 1: going on in New York and around the world. Michael,

496
00:28:08,600 --> 00:28:10,560
Speaker 1: thank you very much. Nathan. Time is running out to

497
00:28:10,600 --> 00:28:14,159
Speaker 1: avoid a possible nurses strink at several New York City hospitals.

498
00:28:14,520 --> 00:28:17,560
Speaker 1: Members of the New York State Nurses Association say about

499
00:28:17,560 --> 00:28:20,320
Speaker 1: ten thousand members are ready to walk out on Monday.

500
00:28:20,840 --> 00:28:24,440
Speaker 1: Nurses say staffing levels have created unsafe conditions for patients.

501
00:28:24,760 --> 00:28:28,520
Speaker 1: Five institutions, including Mount Sinai Health System, are still in

502
00:28:28,600 --> 00:28:31,840
Speaker 1: talks toward a resolution. Three others have reached tentative agreements.

503
00:28:32,119 --> 00:28:35,240
Speaker 1: President Biden will mark the second anniversary of the January

504
00:28:35,359 --> 00:28:38,520
Speaker 1: sixth insurrection. With the ceremony today at the White House,

505
00:28:38,840 --> 00:28:42,880
Speaker 1: Biden will present the Presidential Civilian Award to police officers

506
00:28:43,080 --> 00:28:46,160
Speaker 1: who served on that day. One of those officers as

507
00:28:46,240 --> 00:28:50,800
Speaker 1: Capitol Police officer Harry Dunn, who says he suffers from PTSD. Man.

508
00:28:50,840 --> 00:28:52,840
Speaker 1: I thought I had this under control, I beat this,

509
00:28:53,440 --> 00:28:56,640
Speaker 1: but no, it literally just came out of nowhere and

510
00:28:56,760 --> 00:29:00,440
Speaker 1: it broke me. Officer Dunn's full interview will their Sunday

511
00:29:00,480 --> 00:29:04,240
Speaker 1: on ABC's This Week Heard on Bloomberg. Meanwhile, former President

512
00:29:04,280 --> 00:29:06,600
Speaker 1: Donald Trump is being blamed for the death of Capitol

513
00:29:06,600 --> 00:29:09,760
Speaker 1: Police officer Brian sick Nik, who was assaulted during the

514
00:29:09,800 --> 00:29:13,440
Speaker 1: Capitol riot. It's in a lawsuit from Sickneck's longtime partner

515
00:29:13,480 --> 00:29:16,760
Speaker 1: that claims Trump is responsible because he riled up his

516
00:29:16,800 --> 00:29:20,880
Speaker 1: supporters with false election claims and calls to take action.

517
00:29:21,240 --> 00:29:25,240
Speaker 1: Vladimir Putin's proposed thirty six hours cease fire in Ukraine

518
00:29:25,280 --> 00:29:28,480
Speaker 1: has drawn a cold shoulder from the US President. Biden

519
00:29:28,520 --> 00:29:33,360
Speaker 1: calls it hypocrisy. I'm reluctant respond to anything. Prutent says,

520
00:29:33,480 --> 00:29:38,160
Speaker 1: I found it interesting he was ready to um bomb

521
00:29:38,200 --> 00:29:44,000
Speaker 1: hospitals and nurseries and um churches and on the twenty

522
00:29:44,080 --> 00:29:48,800
Speaker 1: five and New Year's and I mean I think he's

523
00:29:48,800 --> 00:29:52,080
Speaker 1: trying to find some oxygen. President Biden spoke after delivering

524
00:29:52,120 --> 00:29:55,480
Speaker 1: remarks on immigration yesterday. Global News twenty four hours a

525
00:29:55,560 --> 00:29:57,880
Speaker 1: day on air and on Bloomberg Quick Take, powered by

526
00:29:57,920 --> 00:30:01,120
Speaker 1: more than journalists and analysts more than a hundred twenty countries.

527
00:30:01,400 --> 00:30:08,520
Speaker 1: Michael Barr, this is Bloomberg Nathing. Thank you, Michael. Five

528
00:30:08,640 --> 00:30:11,120
Speaker 1: thirty three on Wall Street Time for the Bloomberg Sports Update,

529
00:30:11,120 --> 00:30:13,280
Speaker 1: brought to you by Trice State out of Here's John Stadshow.

530
00:30:13,360 --> 00:30:16,640
Speaker 1: Thanks Nathan. Great news from Damar Hamlin's doctors in Cincinnati.

531
00:30:16,680 --> 00:30:21,160
Speaker 1: The Buffalo Bill safety showing quote remarkable ahead of schedule improvement,

532
00:30:21,200 --> 00:30:25,360
Speaker 1: said to be neurologically intact and responsive. Bill's quarterback Josh

533
00:30:25,400 --> 00:30:27,800
Speaker 1: Allen met the media in Buffalo, and for the first time,

534
00:30:27,800 --> 00:30:29,520
Speaker 1: I was asked what it was like being on the

535
00:30:29,520 --> 00:30:31,760
Speaker 1: field this past Monday. You can never put yourself in

536
00:30:31,760 --> 00:30:35,240
Speaker 1: that situation until it happens. Um. I want to think,

537
00:30:35,240 --> 00:30:39,440
Speaker 1: are the coach mentioned it earlier? But our training staff

538
00:30:40,960 --> 00:30:43,560
Speaker 1: for going out there not knowing what's going on, but

539
00:30:43,640 --> 00:30:47,400
Speaker 1: going through a checklist, working as a single sales Synbia

540
00:30:47,600 --> 00:30:52,280
Speaker 1: like saving his life. Hamlin's doctors said his first question

541
00:30:52,320 --> 00:30:53,760
Speaker 1: was whether the Bills had won the game. As it

542
00:30:53,800 --> 00:30:55,760
Speaker 1: turns out no one did. The game was of course stopped,

543
00:30:55,760 --> 00:30:57,760
Speaker 1: and the NFL and out did will not be resumed.

544
00:30:57,760 --> 00:31:01,200
Speaker 1: The game add significance and a f see playoffs seeding.

545
00:31:01,240 --> 00:31:04,040
Speaker 1: There are reports the NFL is considering some changes in

546
00:31:04,160 --> 00:31:06,560
Speaker 1: light of that regular season and Sunday last game for

547
00:31:06,600 --> 00:31:08,600
Speaker 1: the Jets, limping to the finish with a five game

548
00:31:08,640 --> 00:31:11,560
Speaker 1: wising spink. They visit Miami, who has also lost five

549
00:31:11,560 --> 00:31:13,400
Speaker 1: in a row, but the Dolphins can make the playoffs

550
00:31:13,400 --> 00:31:15,920
Speaker 1: with a win. And in New England lost in Buffalo.

551
00:31:16,000 --> 00:31:18,760
Speaker 1: The Giants locked into the six scenes, so they're game

552
00:31:18,800 --> 00:31:21,400
Speaker 1: in Philadelphia meaningless for them. Coach Brian day Ball has

553
00:31:21,400 --> 00:31:24,320
Speaker 1: refused to say whether that means he'll sit out guys

554
00:31:24,360 --> 00:31:26,880
Speaker 1: like Daniel Jones and say Kwan Barkley. It's a huge

555
00:31:26,920 --> 00:31:29,480
Speaker 1: game for the Eagles. They've lost their last two. They

556
00:31:29,520 --> 00:31:31,880
Speaker 1: need a win to gain the NFC's one seed, or

557
00:31:31,920 --> 00:31:34,200
Speaker 1: they could be the five seed. Rangers won four one

558
00:31:34,200 --> 00:31:37,000
Speaker 1: at Montreal. Losses for both the Devils and Islanders. John

559
00:31:37,000 --> 00:31:40,040
Speaker 1: stash Award Bloomberg Sports all Right, John thank you, and

560
00:31:40,080 --> 00:31:42,440
Speaker 1: the Bloomberg Sports Report was brought to you by Audie.

561
00:31:42,440 --> 00:31:44,600
Speaker 1: Don't let someone else drive off and the outie model

562
00:31:44,680 --> 00:31:47,440
Speaker 1: you've always wanted. Visit your local price state autie dealer

563
00:31:47,520 --> 00:31:49,520
Speaker 1: to get behind the wheel of yours today, or visit

564
00:31:49,560 --> 00:31:52,680
Speaker 1: autie offers dot com for more information. SMP futures up

565
00:31:52,680 --> 00:31:55,440
Speaker 1: a point right now down futures up nineteen NASTAC features

566
00:31:55,440 --> 00:31:58,520
Speaker 1: are lower by twelve points. Tenure treasure yield three point

567
00:31:58,560 --> 00:32:03,680
Speaker 1: seven three percent three five thirty five. I should say

568
00:32:03,760 --> 00:32:06,160
Speaker 1: on Wall Street it's time for the Tri State Business Report.

569
00:32:06,200 --> 00:32:08,760
Speaker 1: For that, we bring in Bloomberg's that Cory New Jersey

570
00:32:08,800 --> 00:32:12,280
Speaker 1: has taken in thirty one billion dollars in sports bets

571
00:32:12,320 --> 00:32:15,760
Speaker 1: just four years after it became legal. The Post reports

572
00:32:15,800 --> 00:32:17,760
Speaker 1: that's the most of any state in the country for

573
00:32:17,840 --> 00:32:21,760
Speaker 1: that time period, but Jersey's lead is dwindling fast. New

574
00:32:21,840 --> 00:32:25,800
Speaker 1: Yorkers are showing interest in sports gambling. In two more

575
00:32:25,800 --> 00:32:28,840
Speaker 1: than fourteen billion dollars in bets were made in that state.

576
00:32:29,280 --> 00:32:31,880
Speaker 1: The new two billion dollar terminal A at New Work

577
00:32:31,920 --> 00:32:36,120
Speaker 1: Liberty Airport opens next Thursday. The new terminal was originally

578
00:32:36,120 --> 00:32:39,480
Speaker 1: supposed to welcome flyers December eight but the opening was

579
00:32:39,520 --> 00:32:42,720
Speaker 1: delayed last month due to last minute issues identified in

580
00:32:42,800 --> 00:32:46,800
Speaker 1: the facility's fire alarm and security systems. New York Governor

581
00:32:46,880 --> 00:32:49,080
Speaker 1: Kathy Hokele has signed a bill into law that would

582
00:32:49,080 --> 00:32:52,160
Speaker 1: ban p FASS in clothing by the end of the year.

583
00:32:52,360 --> 00:32:55,920
Speaker 1: The chemicals are a known andocrine disruptor prevalent in clothing

584
00:32:55,960 --> 00:32:59,880
Speaker 1: and other everyday aspects of life, from takeout containers to

585
00:33:00,080 --> 00:33:04,240
Speaker 1: nonstick cookware. That your Bloomberg Try State Business Report mym

586
00:33:04,360 --> 00:33:07,480
Speaker 1: Ed Corey, Thank you. Edit's five thirty six on Wall Street.

587
00:33:07,680 --> 00:33:11,840
Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial

588
00:33:11,920 --> 00:33:14,960
Speaker 1: was written by the Bloomberg Editorial Board. Say this for

589
00:33:14,960 --> 00:33:18,560
Speaker 1: the new Republicans in Congress. They made history. Now they

590
00:33:18,560 --> 00:33:21,640
Speaker 1: need to start making an agenda. This week, a handful

591
00:33:21,680 --> 00:33:25,240
Speaker 1: of far right House Republicans revolted against the party's leading

592
00:33:25,280 --> 00:33:28,840
Speaker 1: candidate for Speaker, Kevin McCarthy, denying him the majority he

593
00:33:28,880 --> 00:33:31,040
Speaker 1: needed to win. It was the first time in a

594
00:33:31,120 --> 00:33:34,320
Speaker 1: century that House lawmakers failed to elect a speaker on

595
00:33:34,360 --> 00:33:37,000
Speaker 1: the first ballot. The House can't take up business without

596
00:33:37,000 --> 00:33:39,440
Speaker 1: a speaker, which means a small group of right wing

597
00:33:39,440 --> 00:33:43,120
Speaker 1: extremists is holding Congress hostage. This is what happens when

598
00:33:43,120 --> 00:33:47,360
Speaker 1: a political party effectively ignores public policy. After a campaign

599
00:33:47,360 --> 00:33:50,880
Speaker 1: that emphasized cultural war issues over an actual governing agenda,

600
00:33:51,280 --> 00:33:54,480
Speaker 1: House Republicans have found themselves in power without a plan.

601
00:33:54,960 --> 00:33:58,120
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For

602
00:33:58,200 --> 00:34:01,240
Speaker 1: more Bloomberg opinion, please go to Boomberg dot com, slash

603
00:34:01,240 --> 00:34:04,800
Speaker 1: opinion or OPI n go on the Bloomberg Terminal. These

604
00:34:04,840 --> 00:34:08,040
Speaker 1: has been Bloomberg Opinion and you can hear Bloomberg opinion

605
00:34:08,120 --> 00:34:11,480
Speaker 1: editorials every weekday. At this time, terminal customers can read

606
00:34:11,560 --> 00:34:14,680
Speaker 1: more at O P I n go. In corporate news

607
00:34:14,719 --> 00:34:17,640
Speaker 1: this morning, Tesla has made another round of price cuts

608
00:34:17,680 --> 00:34:21,680
Speaker 1: on its Model three and Model Y electric vehicles in China.

609
00:34:22,160 --> 00:34:26,239
Speaker 1: Starting price for a locally built Model Y SUV has

610
00:34:26,239 --> 00:34:29,400
Speaker 1: been slashed to thirty eight thousand dollars. That is forty

611
00:34:29,480 --> 00:34:31,920
Speaker 1: three percent cheaper that you can find it in the US.

612
00:34:32,360 --> 00:34:36,759
Speaker 1: Tesla has been cutting prices as it faces renewed competition

613
00:34:37,200 --> 00:34:40,640
Speaker 1: in China. Stay with us, we'll get you a preview

614
00:34:40,680 --> 00:34:43,520
Speaker 1: of the December payrolls report what it could mean for

615
00:34:43,600 --> 00:34:47,360
Speaker 1: the path ahead for federal reserve policy. Drew Madis, chief

616
00:34:47,360 --> 00:34:53,239
Speaker 1: investment strategist at Medlife Investment Management, joins us on this

617
00:34:53,560 --> 00:34:57,239
Speaker 1: job's Friday. In the minutes ahead, you're listening to Bloomberg

618
00:34:57,320 --> 00:35:04,800
Speaker 1: day Break, good morning markets, headlines and breaking news twenty

619
00:35:04,800 --> 00:35:07,640
Speaker 1: four hours a day at Bloomberg dot Com. A Bloomberg

620
00:35:07,680 --> 00:35:10,640
Speaker 1: business at hand. At Bloomberg Quick Tape, this is a

621
00:35:10,680 --> 00:35:20,640
Speaker 1: Bloomberg business lash and I'm parent Moscow. European shares and

622
00:35:20,760 --> 00:35:24,640
Speaker 1: Wall Street futures are struggling to maintain gains as traders

623
00:35:24,640 --> 00:35:27,080
Speaker 1: of race for US jobs numbers that are due later

624
00:35:27,160 --> 00:35:29,640
Speaker 1: this morning that will help chart the path forward for

625
00:35:30,040 --> 00:35:32,839
Speaker 1: Federal Reserve monetary tightening. We check the markets all day

626
00:35:32,840 --> 00:35:35,840
Speaker 1: long here on Bloomberg. SNP futures that will change now

627
00:35:36,040 --> 00:35:38,400
Speaker 1: Future is up tenth of a percent or thirty three points,

628
00:35:38,440 --> 00:35:40,799
Speaker 1: and nedsday futures are little change when the decks in

629
00:35:40,800 --> 00:35:44,360
Speaker 1: Germany also little change. Ten your treasury down three thirty seconds.

630
00:35:44,400 --> 00:35:46,360
Speaker 1: You have three point seven two percent the yield on

631
00:35:46,440 --> 00:35:49,480
Speaker 1: the two year four point four seven percent. Nimex screwed

632
00:35:49,520 --> 00:35:51,480
Speaker 1: oil is up seven tenths per cent, or fifty three

633
00:35:51,480 --> 00:35:54,719
Speaker 1: cents at seventy one cents a barrel. Comex School that

634
00:35:54,719 --> 00:35:57,799
Speaker 1: will change in eighteen forty seventy announce the euro one

635
00:35:57,800 --> 00:36:00,160
Speaker 1: point oh five one two against the dollar, British on

636
00:36:00,160 --> 00:36:03,359
Speaker 1: one five six and one thirty four point to nine,

637
00:36:03,640 --> 00:36:06,640
Speaker 1: and bitcoins down three tens of percent. It said about

638
00:36:06,680 --> 00:36:10,760
Speaker 1: sixteen thousand, seven ninety dollars and that's a Bloomberg business flash.

639
00:36:10,760 --> 00:36:12,920
Speaker 1: Now here's Michael Barr with more on what's going on

640
00:36:12,960 --> 00:36:15,800
Speaker 1: around the world. Michael Karen. The House which turns today

641
00:36:15,800 --> 00:36:18,239
Speaker 1: to try again to end the stalemate over choosing to

642
00:36:18,360 --> 00:36:21,920
Speaker 1: speak here after days of voting with no conclusion. Party

643
00:36:22,000 --> 00:36:24,600
Speaker 1: leader Kevin McCarthy is determined to win over enough of

644
00:36:24,680 --> 00:36:29,280
Speaker 1: hello Republicans and has offered the Conservative holdouts rule changes

645
00:36:29,320 --> 00:36:32,080
Speaker 1: to give them more power. Several days after he went

646
00:36:32,120 --> 00:36:35,200
Speaker 1: into cardiac arrest. Doctors say Bills safety to Marrow Hamlin

647
00:36:35,680 --> 00:36:39,479
Speaker 1: is beginning to awaken and is showing substantial improvement. Dr

648
00:36:39,600 --> 00:36:42,920
Speaker 1: say Hamlin's first question was did we win? Meanwhile, the

649
00:36:43,040 --> 00:36:46,440
Speaker 1: NFL canceled the game between the Bills and Bengals. In hockey,

650
00:36:46,480 --> 00:36:50,280
Speaker 1: the Devils and Islanders lost, the Rangers, Bruins and Capitol's

651
00:36:50,320 --> 00:36:53,600
Speaker 1: one in the NBA, the Celtics one. Global News twenty

652
00:36:53,600 --> 00:36:56,520
Speaker 1: four hours a day on air and on Bloomberg Quick Take,

653
00:36:56,760 --> 00:36:59,480
Speaker 1: powered by more than twenty seven hundred journalist and analyst

654
00:36:59,560 --> 00:37:01,920
Speaker 1: more than a hund twenty countries. Michael Bard, this is

655
00:37:01,920 --> 00:37:04,239
Speaker 1: Bloomberg Naked all right, Michael, thank you. It is five

656
00:37:04,360 --> 00:37:07,160
Speaker 1: forty two on Wall Street. This is Bloomberg Daybreak. I'm

657
00:37:07,239 --> 00:37:09,640
Speaker 1: Nathan Hagar along with Karen Moscow taking a look at

658
00:37:09,680 --> 00:37:13,440
Speaker 1: some other stories making news this morning, including a development

659
00:37:13,440 --> 00:37:18,200
Speaker 1: in the world of professional wrestling. Vince McMahon, controlling shareholder

660
00:37:18,200 --> 00:37:21,600
Speaker 1: a World Wrestling Entertainment, is looking back or to get

661
00:37:21,600 --> 00:37:24,880
Speaker 1: back into the day to day running of the company.

662
00:37:24,960 --> 00:37:28,920
Speaker 1: Mcmanhn's proposing to put himself and to other executives back

663
00:37:28,960 --> 00:37:32,160
Speaker 1: on the w w E board, and Bloomberg's Charlie Pellett

664
00:37:32,200 --> 00:37:35,640
Speaker 1: has more. In a statement, McMahon, who retired last year

665
00:37:35,719 --> 00:37:39,799
Speaker 1: amid allegations of sexual misconduct, is seeking to return to

666
00:37:40,040 --> 00:37:44,440
Speaker 1: w w E as chairman. He's also nominating former executives

667
00:37:44,480 --> 00:37:47,759
Speaker 1: George Barrios and Michelle Wilson to the board and is

668
00:37:47,800 --> 00:37:52,239
Speaker 1: seeking a strategic review of the business. The executive who

669
00:37:52,320 --> 00:37:55,080
Speaker 1: ran the wrestling Giant for decades, said that with its

670
00:37:55,120 --> 00:37:58,680
Speaker 1: TV rights coming up for renewal. It's a good time

671
00:37:58,719 --> 00:38:02,760
Speaker 1: to review the company options in New York. Charlie Pellette

672
00:38:02,840 --> 00:38:06,800
Speaker 1: bloom Bird Daybreak, Thank you Well, here's an ominous sign

673
00:38:06,960 --> 00:38:10,560
Speaker 1: for consumers. More Americans are turning to credit cards to

674
00:38:10,600 --> 00:38:14,239
Speaker 1: pay everyday expenses. According to the Census Bureau, more than

675
00:38:14,400 --> 00:38:17,719
Speaker 1: thirty five of households use credit cards or loans in

676
00:38:17,840 --> 00:38:21,759
Speaker 1: December to cover spending needs. That's up from reading just

677
00:38:21,880 --> 00:38:24,600
Speaker 1: eighteen months ago. It's a sign that households hit hard

678
00:38:24,640 --> 00:38:28,080
Speaker 1: by inflation or finding their regular income is not enough

679
00:38:28,480 --> 00:38:30,960
Speaker 1: to make ends meet. Meanwhile, while we wait for the

680
00:38:31,040 --> 00:38:33,840
Speaker 1: December jobs report, it turns out a typical nine to

681
00:38:33,960 --> 00:38:37,399
Speaker 1: five job is not so typical anymore. New data from

682
00:38:37,440 --> 00:38:41,400
Speaker 1: the International Labor Organization shows more than half the global

683
00:38:41,480 --> 00:38:45,360
Speaker 1: workforce either works too much or too little. The report

684
00:38:45,440 --> 00:38:48,279
Speaker 1: shows the average work week runs about forty three point

685
00:38:48,360 --> 00:38:50,440
Speaker 1: nine hours. At the same time, about a third of

686
00:38:50,480 --> 00:38:53,440
Speaker 1: employees have a work week of more than forty eight hours.

687
00:38:53,880 --> 00:38:56,720
Speaker 1: Well a fifth work part time or less than thirty

688
00:38:56,800 --> 00:39:01,400
Speaker 1: five hours a week. Nathan a very nicely for what

689
00:39:01,600 --> 00:39:04,200
Speaker 1: we're going to get when it comes to the health

690
00:39:04,280 --> 00:39:07,040
Speaker 1: of the overall labor market. We're about to get our

691
00:39:07,160 --> 00:39:11,719
Speaker 1: final glimpse at what jobs look like in two and

692
00:39:11,760 --> 00:39:15,879
Speaker 1: the Labor Department releases December payrolls in just about oh

693
00:39:16,200 --> 00:39:19,760
Speaker 1: two hours and forty five minutes now springing. Drew Maddis,

694
00:39:20,000 --> 00:39:24,640
Speaker 1: chief market strategist at Medlife Investment Management, Drew, good morning.

695
00:39:25,080 --> 00:39:28,879
Speaker 1: What's the trajectory you see for job growth? Well, I'm

696
00:39:28,920 --> 00:39:30,960
Speaker 1: not too far off from where the consensus is for

697
00:39:31,040 --> 00:39:33,960
Speaker 1: this month's job growth numbers, but I think you know

698
00:39:34,360 --> 00:39:37,399
Speaker 1: the most that story is the perfect story for where

699
00:39:37,400 --> 00:39:40,680
Speaker 1: I think the important area to look at lies, which

700
00:39:40,760 --> 00:39:43,080
Speaker 1: is how much are these people who are hired being

701
00:39:43,680 --> 00:39:47,879
Speaker 1: being worked? Right? Um, what we really what I'm really

702
00:39:48,239 --> 00:39:51,200
Speaker 1: cautious about looking at is that hours work number because

703
00:39:51,239 --> 00:39:53,600
Speaker 1: I think what may be happening is firms are hiring

704
00:39:53,719 --> 00:39:57,839
Speaker 1: people that maybe they don't necessarily need because it's been

705
00:39:57,880 --> 00:40:00,280
Speaker 1: so difficult to hire people for such a long period

706
00:40:00,320 --> 00:40:04,239
Speaker 1: of time. So when someone becomes available, they hire them, uh,

707
00:40:04,320 --> 00:40:06,120
Speaker 1: and then they don't work them as much as as

708
00:40:06,160 --> 00:40:08,600
Speaker 1: maybe they would work other workers, and that work week

709
00:40:08,680 --> 00:40:11,560
Speaker 1: number begins to decline. And I think that's what we're

710
00:40:11,600 --> 00:40:14,000
Speaker 1: likely to see this this month, is that we'll get

711
00:40:14,000 --> 00:40:16,640
Speaker 1: a pretty good jobs number, but maybe the work week

712
00:40:16,719 --> 00:40:18,520
Speaker 1: is a little on the soft side. Not At the

713
00:40:18,600 --> 00:40:22,799
Speaker 1: same time, we keep hearing drew about pretty high profile

714
00:40:23,000 --> 00:40:27,759
Speaker 1: job cuts in the financial sector the tech sector as well,

715
00:40:27,960 --> 00:40:31,000
Speaker 1: and it's starting to raise the question about whether some

716
00:40:31,120 --> 00:40:33,920
Speaker 1: of those laid off workers are going to be matched

717
00:40:34,000 --> 00:40:37,600
Speaker 1: into the jobs that are still available. Are we still

718
00:40:38,080 --> 00:40:41,279
Speaker 1: expecting to see uh, something of a mismatch there when

719
00:40:41,320 --> 00:40:47,319
Speaker 1: it comes to job openings and labor force participation. Well,

720
00:40:47,360 --> 00:40:50,160
Speaker 1: I think you might. And I also think that, you know,

721
00:40:50,239 --> 00:40:52,640
Speaker 1: one of the things to look at, particularly in a

722
00:40:52,719 --> 00:40:56,239
Speaker 1: December payroll number, is you don't really want to look

723
00:40:56,280 --> 00:40:58,560
Speaker 1: too hard at retail and you don't really want to

724
00:40:58,600 --> 00:41:01,040
Speaker 1: look too hard at things like struction, right because there's

725
00:41:01,040 --> 00:41:02,719
Speaker 1: not a lot of construction going on in the winter.

726
00:41:03,400 --> 00:41:06,719
Speaker 1: Um And so you you really I mean, not that

727
00:41:06,800 --> 00:41:09,680
Speaker 1: there's got to be a core to every economics report

728
00:41:09,719 --> 00:41:12,239
Speaker 1: out there, but you do want to exclude the ones

729
00:41:12,320 --> 00:41:14,280
Speaker 1: that are that are more likely to be a seasonal

730
00:41:14,320 --> 00:41:17,160
Speaker 1: factor adjustment rather than kind of a true job gain,

731
00:41:17,880 --> 00:41:20,799
Speaker 1: um And and look beyond that to kind of things

732
00:41:20,880 --> 00:41:24,400
Speaker 1: like the manufacturing sector and likewise to see what the

733
00:41:24,480 --> 00:41:26,640
Speaker 1: job growth looks like. And I think they're the job

734
00:41:26,680 --> 00:41:29,600
Speaker 1: growth will be okay. Um, where I think it will

735
00:41:29,640 --> 00:41:32,640
Speaker 1: turn is actually next next quarter, because a lot of

736
00:41:32,680 --> 00:41:36,040
Speaker 1: companies do planning processes in the fourth quarter and then

737
00:41:36,160 --> 00:41:39,040
Speaker 1: execute on them in the first quarter. And that includes

738
00:41:39,120 --> 00:41:44,520
Speaker 1: planning for things like jobs. It sounds like we may

739
00:41:44,520 --> 00:41:47,120
Speaker 1: have lost you their jury. You still with us? I

740
00:41:47,239 --> 00:41:51,120
Speaker 1: am okay, can you hear me? It includes planning for

741
00:41:51,239 --> 00:41:53,759
Speaker 1: things like jobs, job cuts, whether or not they're going

742
00:41:53,800 --> 00:41:57,080
Speaker 1: to hire people. Um. You know. So the plan that

743
00:41:57,120 --> 00:41:59,600
Speaker 1: they're going to execute their putting in place now the

744
00:41:59,840 --> 00:42:02,520
Speaker 1: x acute or they put in place in the fourth quarter,

745
00:42:02,640 --> 00:42:05,000
Speaker 1: and they'll executed over the course of the next year.

746
00:42:05,400 --> 00:42:06,960
Speaker 1: And that means if there's gonna be a turn in

747
00:42:07,000 --> 00:42:10,120
Speaker 1: the jobs numbers, it's gonna come with the reports out

748
00:42:10,200 --> 00:42:12,320
Speaker 1: and let's say March and April that come out for

749
00:42:12,480 --> 00:42:15,360
Speaker 1: February and March. Okay, So when we start start to

750
00:42:15,400 --> 00:42:19,400
Speaker 1: see that execution take place, what's the implication on what

751
00:42:19,520 --> 00:42:22,719
Speaker 1: we could see in terms of wage growth? Are we

752
00:42:23,040 --> 00:42:24,880
Speaker 1: still expecting that we're going to see the kind of

753
00:42:24,960 --> 00:42:27,960
Speaker 1: wage pressures that the FED doesn't want to see and

754
00:42:28,040 --> 00:42:32,440
Speaker 1: they could potentially keep rates moving higher. Well, yes, I

755
00:42:32,520 --> 00:42:35,080
Speaker 1: think you know that the prospects for decent wage games

756
00:42:35,160 --> 00:42:38,160
Speaker 1: are likely, but you know, they are heavily concentrated in

757
00:42:38,239 --> 00:42:41,239
Speaker 1: kind of lower wage industry. So you know, as we

758
00:42:41,360 --> 00:42:43,600
Speaker 1: start the new year, we're gonna see things like new

759
00:42:43,640 --> 00:42:46,120
Speaker 1: minimum wages going you know, minimum wages going up in

760
00:42:46,120 --> 00:42:48,640
Speaker 1: a number of states. That will have an effect on things.

761
00:42:49,160 --> 00:42:51,040
Speaker 1: And we also have to bear in mind, you know,

762
00:42:51,120 --> 00:42:52,920
Speaker 1: once again, a lot of the wage games are not

763
00:42:53,080 --> 00:42:55,720
Speaker 1: coming from kind of like the middle upper middle class,

764
00:42:55,760 --> 00:42:58,320
Speaker 1: are coming from workers who are working closer to the

765
00:42:58,400 --> 00:43:01,480
Speaker 1: minimum wage boundary. Uh. And while that may be a

766
00:43:01,560 --> 00:43:05,160
Speaker 1: good thing from a societal standpoint, um, it's important to

767
00:43:05,239 --> 00:43:07,279
Speaker 1: bear in mind it's not really doing a lot for

768
00:43:07,400 --> 00:43:10,240
Speaker 1: kind of the higher income tears that are also struggling

769
00:43:10,280 --> 00:43:12,839
Speaker 1: with inflation in order to maintain their center of living.

770
00:43:14,160 --> 00:43:16,759
Speaker 1: Is there a point that the unemployment rate needs to

771
00:43:16,840 --> 00:43:19,720
Speaker 1: get to an order for the FED to consider pivoting.

772
00:43:19,800 --> 00:43:23,200
Speaker 1: Is there a correlation there. I'm not sure if there's

773
00:43:23,200 --> 00:43:25,680
Speaker 1: a correlation, but they basically pointed to it in their

774
00:43:25,760 --> 00:43:30,360
Speaker 1: last set of economic projections. Um, well, let let me

775
00:43:30,400 --> 00:43:33,560
Speaker 1: turn it around. There's a level of inflation they'll tolerate

776
00:43:33,760 --> 00:43:37,439
Speaker 1: before they start cutting interest rates. Um, And that level

777
00:43:37,560 --> 00:43:40,120
Speaker 1: was not two percent you know, in the summary of

778
00:43:40,160 --> 00:43:43,359
Speaker 1: economic projections, they're cutting interest rates when inflation is still

779
00:43:43,640 --> 00:43:46,680
Speaker 1: well above two percent UM, and so that tells you

780
00:43:46,840 --> 00:43:50,400
Speaker 1: that the toleration level, given their unemployment forecasts in the

781
00:43:50,480 --> 00:43:54,880
Speaker 1: mid fours, is probably more predicated on how fast unemployment

782
00:43:54,960 --> 00:43:59,600
Speaker 1: moves rather than a than a point level. Our last

783
00:43:59,640 --> 00:44:03,080
Speaker 1: thirty seconds here, Drew, is the December report a pivot

784
00:44:03,120 --> 00:44:05,759
Speaker 1: point for the Fed when it comes to deciding what

785
00:44:06,080 --> 00:44:08,839
Speaker 1: level of an interest rate hike we could see next month.

786
00:44:10,280 --> 00:44:12,319
Speaker 1: It's one of the last data points, So it's gonna

787
00:44:12,320 --> 00:44:15,800
Speaker 1: be this and the inflation numbers UM and uh, you know,

788
00:44:15,920 --> 00:44:19,120
Speaker 1: maybe even the retail sales numbers, because you know, we

789
00:44:19,440 --> 00:44:22,840
Speaker 1: keep waiting for the consumer to drop off. Data dependence

790
00:44:23,160 --> 00:44:26,320
Speaker 1: always the way for this Federal Reserve. Thank you as always.

791
00:44:26,400 --> 00:44:29,600
Speaker 1: Drew maddis joining us on this Job's Friday, chief market

792
00:44:29,680 --> 00:44:34,440
Speaker 1: strategist at MetLife Investment Management. Again, will the numbers come out?

793
00:44:34,520 --> 00:44:37,520
Speaker 1: Eight thirty Wall Street time. We'll have full coverage for

794
00:44:37,640 --> 00:44:41,080
Speaker 1: you ahead of a conversation with Labor Secretary Marty Wall.

795
00:44:41,160 --> 00:44:44,320
Speaker 1: She'll be joining us on Bloomberg Radio and television. Tune

796
00:44:44,320 --> 00:44:47,160
Speaker 1: back in for that conversation. It's set for around ninety

797
00:44:47,280 --> 00:44:50,759
Speaker 1: five Wall Street time, about an hour after the payrolls

798
00:44:50,840 --> 00:44:54,640
Speaker 1: print comes out. SMP futures right now up three points,

799
00:44:54,640 --> 00:44:58,360
Speaker 1: staff futures up forty NASTAC futures down eight points. This

800
00:44:59,000 --> 00:45:05,080
Speaker 1: is Bloomberg Markets, headlines and breaking news, twenty four hours

801
00:45:05,120 --> 00:45:08,080
Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business at

802
00:45:08,160 --> 00:45:18,000
Speaker 1: Land at Bloomberg Quicktape. He's a Bloomberg business flash and

803
00:45:18,120 --> 00:45:21,000
Speaker 1: I'm Karen Moscow. Isn't P futures It will changed on

804
00:45:21,120 --> 00:45:23,080
Speaker 1: this job's day. And we checked the markets all day

805
00:45:23,120 --> 00:45:25,480
Speaker 1: long here on Bloomberg again us in P futures, it

806
00:45:25,480 --> 00:45:27,640
Speaker 1: will change down futures up a tenth of upper cent

807
00:45:27,719 --> 00:45:30,319
Speaker 1: or thirty three points, and as day futures down two

808
00:45:30,400 --> 00:45:32,799
Speaker 1: tens of uppercent or twenty points. In the ten year

809
00:45:32,880 --> 00:45:36,400
Speaker 1: treasury down four thirty seconds, you'll three point seven three percent.

810
00:45:36,520 --> 00:45:39,280
Speaker 1: They yield on the two year four point four seven percent.

811
00:45:39,719 --> 00:45:42,160
Speaker 1: Nine X screwed oils up seven tenths percent, or forty

812
00:45:42,239 --> 00:45:44,960
Speaker 1: nine cents at seventy four dollars sixteen cents of barrel

813
00:45:45,200 --> 00:45:46,960
Speaker 1: and comx s called up a tenth of a percent

814
00:45:47,040 --> 00:45:49,840
Speaker 1: of a dollar seventy and eighteen forty two thirty announced,

815
00:45:50,120 --> 00:45:53,640
Speaker 1: and that's a Bloomberg Business Flash. Nathan Karen, thank you.

816
00:45:53,800 --> 00:45:56,040
Speaker 1: We're coming up on five fifty six on Wall Street

817
00:45:56,080 --> 00:45:59,160
Speaker 1: timed down for our daily Bloomberg Labrief, exploring legal issues

818
00:45:59,239 --> 00:46:01,040
Speaker 1: in the news, and today we focus on the big

819
00:46:01,160 --> 00:46:04,759
Speaker 1: name elite law firm Prostcauer Rose Company is suing its

820
00:46:04,840 --> 00:46:08,880
Speaker 1: former chief operating officer, Jonathan O'Brien, accusing him of swiping

821
00:46:08,920 --> 00:46:13,040
Speaker 1: more than thirty four gigabytes of sensitive confidential documents, including

822
00:46:13,080 --> 00:46:16,719
Speaker 1: electronic files related to the firm's financials, practice information and

823
00:46:16,920 --> 00:46:20,120
Speaker 1: billing rates. A federal judge in Manhattan's given O'Brien till

824
00:46:20,239 --> 00:46:25,280
Speaker 1: five o'clock this afternoon to return any proprietary or confidential information.

825
00:46:25,440 --> 00:46:28,640
Speaker 1: O'Brien denies the allegations through his attorney. For more on

826
00:46:28,680 --> 00:46:31,719
Speaker 1: the case, Bloomberg's June Grosso speaks with attorney Jeff Lewis

827
00:46:31,840 --> 00:46:35,880
Speaker 1: of Jeff Lewis Law. Proscauer, which is nearing it's a

828
00:46:35,960 --> 00:46:39,840
Speaker 1: hundred and fifty anniversary, said the firm is unaware of

829
00:46:39,960 --> 00:46:43,560
Speaker 1: any employee, much less an officer, ever acting in such

830
00:46:43,640 --> 00:46:47,719
Speaker 1: a corrupt, debased, and illegal manner. Have you heard of

831
00:46:47,840 --> 00:46:51,719
Speaker 1: anything like this at any other law firm. No, I've

832
00:46:51,800 --> 00:46:55,680
Speaker 1: handled trade secrets litigation cases, not in the law firm

833
00:46:55,760 --> 00:46:58,800
Speaker 1: context with this kind of thing happened, uh to scruntled

834
00:46:58,840 --> 00:47:01,520
Speaker 1: employee goes to work for a competitor, But I've never

835
00:47:01,600 --> 00:47:05,160
Speaker 1: read such a high level employee of a big offer

836
00:47:05,200 --> 00:47:08,880
Speaker 1: of doing this. In the complaint, Proskauer calls him a

837
00:47:09,080 --> 00:47:14,439
Speaker 1: crafty plotter and describes his steel list. From your look

838
00:47:14,520 --> 00:47:19,160
Speaker 1: at it, has he allegedly taken information that's very important

839
00:47:19,280 --> 00:47:23,720
Speaker 1: to the firm. That would be something considered like trade secrets. Absolutely,

840
00:47:24,080 --> 00:47:26,640
Speaker 1: it's one thing for an employee to leave one firm

841
00:47:26,680 --> 00:47:30,120
Speaker 1: and work for another. Things that reside in an employee's

842
00:47:30,160 --> 00:47:33,360
Speaker 1: head stay in his head, and that's not a protectable

843
00:47:33,440 --> 00:47:36,000
Speaker 1: trade secret. But when you take a thumb drive and

844
00:47:36,120 --> 00:47:42,080
Speaker 1: you bypass security and you download compensation of various partners

845
00:47:42,239 --> 00:47:46,080
Speaker 1: or how various practice areas are doing within a firm,

846
00:47:46,360 --> 00:47:49,799
Speaker 1: you're giving a playbook to a competitor who could use

847
00:47:49,920 --> 00:47:53,920
Speaker 1: that to strategize how to pick off or take practice

848
00:47:54,000 --> 00:47:57,799
Speaker 1: areas clients or partners or associates from a competing offer.

849
00:47:58,239 --> 00:48:01,839
Speaker 1: Can you tell from the papers if any client information

850
00:48:02,040 --> 00:48:06,080
Speaker 1: was accessed. It's pretty clear that client information was not access.

851
00:48:06,320 --> 00:48:08,520
Speaker 1: But I'll tell you one thing that I found interesting.

852
00:48:08,719 --> 00:48:12,240
Speaker 1: There's a suggestion there are an accusation that he lifted

853
00:48:12,239 --> 00:48:15,560
Speaker 1: a litigation hold and caused thousands of his emails to

854
00:48:15,600 --> 00:48:19,080
Speaker 1: be deleted, and if true, there may be some loss

855
00:48:19,200 --> 00:48:23,600
Speaker 1: there of client related data. So forgetting what he put

856
00:48:23,640 --> 00:48:26,200
Speaker 1: in his pocket, in terms of what the firm lost

857
00:48:26,400 --> 00:48:29,760
Speaker 1: access to, there's a lot of the emails with pending

858
00:48:29,880 --> 00:48:32,800
Speaker 1: litigation that will never see the light of day because

859
00:48:32,800 --> 00:48:36,440
Speaker 1: of what this guy did. Prostauer is this billion dollar

860
00:48:36,560 --> 00:48:39,160
Speaker 1: law firm, and you know it's got a great name,

861
00:48:39,200 --> 00:48:41,040
Speaker 1: and what kind of a hit does it take to

862
00:48:41,160 --> 00:48:45,040
Speaker 1: its reputation from something like this. Well, think about this,

863
00:48:45,320 --> 00:48:48,120
Speaker 1: if you're a client and your rely on this law

864
00:48:48,239 --> 00:48:51,000
Speaker 1: firm to protect your secrets. If they can't keep their

865
00:48:51,040 --> 00:48:53,600
Speaker 1: own house in order and keep their own secret secret,

866
00:48:53,760 --> 00:48:58,200
Speaker 1: and one major security measure can be overturned with one

867
00:48:58,320 --> 00:49:01,520
Speaker 1: person directive to an I T person, claients might become

868
00:49:01,760 --> 00:49:06,440
Speaker 1: doubtful that firm's ability to safegard client data, and employees

869
00:49:06,560 --> 00:49:09,719
Speaker 1: and partners of that firm may have concerned about the

870
00:49:09,880 --> 00:49:13,239
Speaker 1: leadership and security of their files and whether or not

871
00:49:13,360 --> 00:49:16,879
Speaker 1: their houses being under an appropriate Fashion. That's attorney Jeff

872
00:49:16,960 --> 00:49:19,520
Speaker 1: Lewis speaking with Bloomberg's June Gross. Help catch more of

873
00:49:19,560 --> 00:49:22,480
Speaker 1: that interview, plus analysis of the latest legal news by

874
00:49:22,520 --> 00:49:25,360
Speaker 1: subscribing to the Bloomberg Law Podcast. You can download the

875
00:49:25,400 --> 00:49:28,880
Speaker 1: show by going over to Bloomberg dot com, Slash podcasts,

876
00:49:28,920 --> 00:49:32,360
Speaker 1: and attorneys can find exceptional legal research and business development

877
00:49:32,400 --> 00:49:35,000
Speaker 1: tools at Bloomberg Law dot com and on the Bloomberg

878
00:49:35,120 --> 00:49:40,440
Speaker 1: terminal at b Law. Go futures flat on this Job's

879
00:49:40,480 --> 00:49:43,360
Speaker 1: Friday Up. Next, we head to Day four, Kevin McCarthy

880
00:49:43,440 --> 00:49:46,520
Speaker 1: Speakership Fight, and count down to December. Pay rolls Our

881
00:49:46,680 --> 00:49:49,279
Speaker 1: two of Bloomberg Daybreak starts right now.