Speaker 1: Live from the Bloomberg Interact at Berger Studios. Is this
Speaker 1: Bloomberg Gay Break for Friday, January six three? Coming up
Speaker 1: this hour, Kevin McCarthy's fights have become house Speaker drags
Speaker 1: into a fourth day. Ball Street braces for its biggest
Speaker 1: economic report of the new year. US authorities ramp up
Speaker 1: the pressure on Sam bankman Fried's inner circle, and Samsung's
Speaker 1: profit falls the most in over a decade. Thousands of
Speaker 1: nurses at New York City hospitals are poised to strike
Speaker 1: on Monday. Plus, today marks the two year anniversary of
Speaker 1: the US Capitol Riot Michael Laaren. More ahead, I'm John
Speaker 1: Stas Showard Sports. The NFL makes a decision on the
Speaker 1: Bill's Bengals game the Rangers one in Montreal, losses for
Speaker 1: the Devil's and Islanders. That's all train ahead on Bloomberg
Speaker 1: Daybreak on Bloomberg eleven three on New York Bloomberg one, Washington,
Speaker 1: d C, Bloomberg one oh six one, Boston, Bloomberg nine
Speaker 1: sixties and Francisco Sirius XAM one nineteen and around the
Speaker 1: world Bloomberg Radio dot Com and via the Bloomberg Business.
Speaker 1: At good Morning, I'm Nathan Hagar and I'm Karen. Moscow
Speaker 1: and US Dock Index futures are little change this morning.
Speaker 1: We check the markets all day long here on Bloomberg
Speaker 1: with SNP and DAL futures both little change. Nasday futures
Speaker 1: no dragging down a quarter percent or twenty eight points.
Speaker 1: Tenure Treasury down five thirty seconds. You have three point
Speaker 1: seven three per cent and the yield on the two
Speaker 1: year four point four seven percent. Nathan, Karen. We'll have
Speaker 1: more on markets and today's jobs report in just a minute,
Speaker 1: but first we are heading into the fourth day of
Speaker 1: the new Congress and the House remains without one key
Speaker 1: job filled. That would be speaker. Republican leader Kevin McCarthy
Speaker 1: is still shy the votes needed to take the gavel,
Speaker 1: and Amy Morris has the latest from our Bloomberg newsroom
Speaker 1: in Washington that's adjourned last night after a historic eleventh vote,
Speaker 1: about twenty Republicans still refusing the cast their ballots for McCarthy,
Speaker 1: saying they want change in Washington. McCarthy has already agreed
Speaker 1: to a rules change allowing just one member to call
Speaker 1: for a vote to oust the sitting speaker. Andy agreed
Speaker 1: to allow for more members of the Freedom Caucus to
Speaker 1: serve on the House Rules Committee, but so far. Matt
Speaker 1: Rosedale of Montana says it's not enough. We need to
Speaker 1: have change. We need to fix this broken system. Republican
Speaker 1: Congressman elect Mike Lawler of New York says the party
Speaker 1: can't let a small group of members dictate terms for
Speaker 1: everyone else. The Freedom Caucus thought that Kevin's support would
Speaker 1: start to fold, uh, and that has not happened. House
Speaker 1: lawmakers reconvene at noon today in Washington. I'm Amy Morris,
Speaker 1: Bloomberg Daybreak. All right, Amy, thank you. It will be
Speaker 1: following the next round of votes throughout the day here
Speaker 1: on Bloomberg Radio. Meantime, another major event in Washington takes
Speaker 1: place at eight thirty am Wall Street time. That's when
Speaker 1: the December JOMPS report is released. Economy is forecast again
Speaker 1: of two hundred two thousand jobs and an unemployment rate
Speaker 1: holding study at three point seven percent. Here with Morris,
Speaker 1: Bloomberg Economics corresponded. Michael McKee, economist, think hiring will slow
Speaker 1: dramatically and unemployment will jump higher. Just not yet. Even
Speaker 1: though the Fed has been raising rates aggressively, it hasn't
Speaker 1: slowed the economy enough to affect the labor market. FED
Speaker 1: officials say that shows no recession is imminent. They also
Speaker 1: worry it means continued inflation pressure. There are not enough
Speaker 1: workers for open jobs, which means employers have to raise wages.
Speaker 1: That's particularly true for service industries, and that makes December
Speaker 1: service industry jobs and earnings key numbers for FED officials
Speaker 1: as they decide how high they have to push interest rates.
Speaker 1: Michael McKee, Bloomberg, Gabriak, and Mike the Fed will be
Speaker 1: paying close attention to today's jobs reports. St. Louis President
Speaker 1: James Bullard says interest rates are getting close to a
Speaker 1: level that could be high enough to bring down inflation.
Speaker 1: The point of this is that we've gone all the
Speaker 1: way back now to the pre inflation shock level of
Speaker 1: inflation expectations. UH macro theories tell us that that boat
Speaker 1: is very well for the future of an actual inflation.
Speaker 1: So this is a good signal for disinflation in St. Louis.
Speaker 1: FED President Jim Bullard is one of the more hawkish
Speaker 1: members of the FED, but he is not a voting
Speaker 1: member on the f o MC this year. Still, Nathan,
Speaker 1: higher interest rates are not yet having a major impact
Speaker 1: on the economy. And that's the view from Carlyle Managing
Speaker 1: Director and head of Global Research Jason Thomas. The economy
Speaker 1: seems to be heading for an iceberg in the form
Speaker 1: of higher interest rates. Those higher interest rates have really
Speaker 1: not taken effect as yet for most borrowers. It's really
Speaker 1: the December nineteen reference date. So as of Q one
Speaker 1: three floating rate corporate borrowers are going to face UH
Speaker 1: debt service costs that are about fifty to sixty higher
Speaker 1: than they experienced just six months ago. Carlyles Jason Thomas
Speaker 1: expects the Fed to raise rates by twenty five basis
Speaker 1: points at each of its next two meetings. Have you
Speaker 1: that's in line with expectations on the street. Well. The
Speaker 1: prospect of higher rates Karen helped send stocks lower yesterday.
Speaker 1: All three major indexes lost at least one percent after
Speaker 1: hiring numbers surpassed estimates in the A, d P, and
Speaker 1: jobless claims, reports Sam Stovall, as chief investment strategist at
Speaker 1: c f R A. It seems as if we are
Speaker 1: heading into three the way a lot of strategists have
Speaker 1: been predicting where it's going to be A tale of
Speaker 1: two halves, where the first half is likely to be
Speaker 1: challenging with high volatility, retest of the October low, maybe
Speaker 1: even a new low set. But then investors look across
Speaker 1: the valley and we start to see a recovery in
Speaker 1: the second half. C A. Sam Stovall says the FED
Speaker 1: could pivot and start cutting rates around December. Well. Turning
Speaker 1: to the ft X saga now, Nathan us authorities are
Speaker 1: renting up pressure on the inner circle of fd X
Speaker 1: co founder Sam Bankman Freed, and we get the latest
Speaker 1: live at Bloomberg Steve Rappaport at Steve good Morning, Good morning, Karen,
Speaker 1: and Nathan. The plot thickens as prosecutors turn their attention
Speaker 1: to another associative, Bankman Freed. They're investigating former ft X
Speaker 1: engineering director ni Shot Singh and what role, if any,
Speaker 1: he played in the crypto company's demise. Singh has not
Speaker 1: been accused of wrongdoing, and it's unclear if he's cooperating.
Speaker 1: Prosecutors already have two people from SPFS Orbit in their corner,
Speaker 1: Caroline Ellison and Gary Wang, pled guilty to fraud and
Speaker 1: are working with the government. The question now, will sing
Speaker 1: also sing live in New York. I'm Steve Rappaport, Bloomberg Daybreak. Okay, Steve,
Speaker 1: thank you. Turning to earnings now, we've got a downbeat
Speaker 1: assessment from Samsung Electronics. Overnight profit fell by the most
Speaker 1: and more than a decade, in the sign that the
Speaker 1: economic slowdown maybe hurting electronics demand more than expected. Samsung's
Speaker 1: operating profit plunged sixty cent thanks to week demand for
Speaker 1: memory ships, smartphones and displays, and that holiday travel meltdown
Speaker 1: is prompting Southwest Airlines to revive its financial outlook before
Speaker 1: reporting earnings. The airline canceling almost sixteen thousand flights over
Speaker 1: eight days around the holidays. Now, Southwest says it is
Speaker 1: assessing the cost of flight disruptions and compensation to passengers
Speaker 1: for hotels and meals. Local headlines straight ahead, and this
Speaker 1: is Bloomberg, thanksparing its forty three degrees in Central Park.
Speaker 1: Can have some scattered showers this morning, but they should
Speaker 1: end by this afternoon. We'll top out near fifty degrees
Speaker 1: mid thirties tonight ahead of a cooler but nice weekend.
Speaker 1: It's time to look at some of the other stories
Speaker 1: making news in New York and around the world. For
Speaker 1: that we bring in Bloomberg's and Michael bar Happy Friday, Michael,
Speaker 1: Happy Friday to you, Nathan. Thousands of New York City
Speaker 1: nurses are poised to strike on Monday. They are protesting
Speaker 1: staffing levels they say create unsafe conditions for patients. Five institutions,
Speaker 1: including Mount Sinai Health Systems, are still in talks toward
Speaker 1: a resolution, but about ten thousand members of the New
Speaker 1: York State Nurses Association three others have reached tentative agreements.
Speaker 1: Today it marks two years since the January six attack
Speaker 1: on the US Capitol. Among the victims as Capitol police
Speaker 1: officer Brian Sicknik, his longtime partner is suing former President
Speaker 1: Trump and two people in the crowd that day for
Speaker 1: his death. Today and award will also be presented to
Speaker 1: Sicknecks family. Another officer who was at the Capitol that
Speaker 1: day was Harry Dunn, who says he suffers from PTSD.
Speaker 1: Dunn says, all eyes are on the Justice Department. They're
Speaker 1: the ones who can bring forth accountability. There were criminal
Speaker 1: things that the former president has done. I don't see
Speaker 1: how you cannot hold him accountable for that day. Officer
Speaker 1: Dun's full interview while their Sunday on ABC's This Week
Speaker 1: Heard on Bloomberg, Attorney General Mary Garland says over four
Speaker 1: people pleaded guilty the federal charges and the riot. New
Speaker 1: evidence in the killings of four University of Idaho students
Speaker 1: has come to light. A newly released half of David
Speaker 1: reveals police identify the suspect, twenty eight year old Brian Coburger,
Speaker 1: by tracking his car on surveillance cameras. Coburger made his
Speaker 1: first court appearance in Idaho yesterday to face four charges
Speaker 1: a first degree murder. He did not inter aptly and
Speaker 1: was ordered hell without bail. Russian President Vladimir Putin's proposed
Speaker 1: thirty six hours cease fire drawn a cold shoulder from
Speaker 1: the US and Ukraine, Bloomberg said Baxter as the story,
Speaker 1: President Joe Biden says hypocrisy. I'm reluctant respond anything. Prutin says,
Speaker 1: I found it interesting. He was ready to um bomb
Speaker 1: hospitals and nurseries and hum churches, and he says Plutin
Speaker 1: is just trying to find some oxygen. Biden also says
Speaker 1: the US, Germany and France are sending some heavy artillery
Speaker 1: Ukraine that will arrive within months, in addition to the
Speaker 1: Patriot missiles in San Francisco. I'm at Baxter. Bloomberg Daybreak
Speaker 1: Global emes twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven
Speaker 1: hundred journalists and analysts more than a hundred twenty countries.
Speaker 1: I'm Michael Barr. This is Bloomberg Naked. Thank you, Michael.
Speaker 1: Time now for our Bloomberg Sports Update. Fortify twice stay
Speaker 1: downey for that, we bring in John stash Our. Good morning, John,
Speaker 1: Your morning, Nathan. Three nights after the Bills and Bengals
Speaker 1: stopped playing in Cincinnati due to Tomorrow Hamlin going into
Speaker 1: cardiac arrest, the NFL made the decision not to resume
Speaker 1: the game. Both teams will play Sunday. Finished the regular
Speaker 1: season playing sixteen games, with everyone else having played seventeen.
Speaker 1: Both teams are going to the playoffs. Both had a
Speaker 1: chance to earn the one seed and the first round
Speaker 1: by If Kansas City wins tomorrow, the Chiefs are assured
Speaker 1: of finishing with the best win percentage. There are reports
Speaker 1: the NFL may announced today measures to diminish the significance
Speaker 1: of that. Meanwhile, we heard yesterday for the first time
Speaker 1: from Hamlin's doctor in Cincinnati, and the news from Timothy
Speaker 1: Pritz was terrific. We would like to share that there
Speaker 1: has been substantial improvement and is conditioned over the past
Speaker 1: twenty four hours. We had significant concern um about him
Speaker 1: after the injury, after the event that happened on the field,
Speaker 1: but he is making substantial progress, Pritz said. The first
Speaker 1: question Hamlin asked was whether the Bills had won the game.
Speaker 1: Local hockey Rangers won four one at Montreal. The Islanders
Speaker 1: lost for two. In Edmonton, Devils lost to St. Louis
Speaker 1: five three. NHL named some of the All Stars for
Speaker 1: the game next month, one from each team in the
Speaker 1: range of rep goalie Egorsister Can also named the Aisles
Speaker 1: Brock Nelson and the Devil's Jack Use College James Ruptors
Speaker 1: was coming off that when at top rank produced Scarlet
Speaker 1: Knights came home and beat Maryland sixty four to fifty,
Speaker 1: held the terms the seventeen first half points. NBA to
Speaker 1: Night Nixon. Toronto next visit New Orleans second time. This week.
Speaker 1: Yankees divided a veteran baseball front office exact to assist
Speaker 1: GM Brian Cashman first was Brian Stabing and now former
Speaker 1: mex gm omar Maniah John Stashward Bloomberg Sports. Nathan, Thank
Speaker 1: you John, and the Bloomberg Sports Report was brought to
Speaker 1: you by Audie. Don't let someone else drive off in
Speaker 1: the outie model you've always wanted. Visit your local tri
Speaker 1: state autie dealer to get behind the wheel of yours today,
Speaker 1: or visit autie Offers dot com for more information. The
Speaker 1: latest on the speakership fight on Capitol Hill. Just to
Speaker 1: head first, futures trading flat, SMP futures up a point down,
Speaker 1: futures up twenty two, NASTAC futures down fourteen points ten.
Speaker 1: Your treasury yield right now three point seven three percent.
Speaker 1: Live from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, d C. Nationwide on Syrius examp of
Speaker 1: Bloomberg Business app and Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 1: Good morning, I'm Nathan Hagarn. While we wait for the
Speaker 1: December payrolls report on this job's Friday, there is still
Speaker 1: one key position on Capitol Hill that has yet to
Speaker 1: be filled that would be Speaker of the House. We're
Speaker 1: heading into a fourth day of the D eight Congress,
Speaker 1: and at this point it is still tough to say
Speaker 1: whether lawmakers can resolve the mismatch between Kevin McCarthy, the
Speaker 1: House GLP leader, and those twenty or so Republicans standing
Speaker 1: in the way of his gavel. Once again, we're joined
Speaker 1: by Greg Valier Live this morning, chief US policy strategist
Speaker 1: at a GF Investments. Uh. Is it starting to feel
Speaker 1: like Groundhog Day? Where you said, Greg, you bet, Mason,
Speaker 1: it's sort of like the inmates have taken over the asylum,
Speaker 1: and unfortunately this could drag on for many, many more days.
Speaker 1: I think you wrote a note earlier this week talking
Speaker 1: about the extraordinary concessions that Kevin McCarthy has made to
Speaker 1: try to hold on to actually get the gavel. Are
Speaker 1: there any other concessions he can make at this point? No,
Speaker 1: there's not much else. I mean, he's agreed to humiliating
Speaker 1: restraints on the role of a speaker, and the irony here, Nathan,
Speaker 1: is that moderate Republicans in the House are a guest
Speaker 1: and they may turn against McCarthy. A lot of moderates
Speaker 1: we're saying late yesterday that they could never accept this
Speaker 1: kind of concession. The other irony is that even with
Speaker 1: this concession, there's a hardcore of four or five very
Speaker 1: adamant House Conservatives who would not vote for McCarthy under
Speaker 1: any circumstances. So I don't see where the concession gets
Speaker 1: him other than diminished support among moderates. Well, let's get
Speaker 1: to your first point there about moderate Republicans potentially providing
Speaker 1: a backlash against McCarthy for the concessions he's made. Uh,
Speaker 1: let me pin you down a little bit on that.
Speaker 1: Are you actually hearing from certain moderates who are saying
Speaker 1: that they may withhold or withdraw their support for McCarthy
Speaker 1: as this process plays out. I'm not sure they're there yet.
Speaker 1: I think they would like to get some assurance that, uh,
Speaker 1: this isn't as radical as it looks. But to answer
Speaker 1: your question, yes, there are some who are willing to
Speaker 1: withhold their support if one vote, if one lone House
Speaker 1: member says I want to try to remove the speaker,
Speaker 1: that's that's just no way to run a railroad. And
Speaker 1: when it comes to those four or five seeming members
Speaker 1: who just aren't going to vote for McCarthy under any circumstance,
Speaker 1: does that lead to an opening for someone else's potential
Speaker 1: alternative to step forward. Well, A good point. There's been
Speaker 1: a lot of other names outed this week, as you know,
Speaker 1: including Jim Jordan's and especially Steve Scalise, but Skalis, who
Speaker 1: is quite popular in the House, is part of the leadership,
Speaker 1: and I think those four or five holdouts probably would
Speaker 1: would hold it against him. There are all sorts of
Speaker 1: other rumors about maybe a bipartisan deal with the Democrats,
Speaker 1: which I think is quite unlikely, maybe floating the name
Speaker 1: of another possible Canada, maybe changing the rule you need
Speaker 1: two hundred eighteen votes, maybe reducing that by having some
Speaker 1: members stay off the floor, all sorts of hail Mary's.
Speaker 1: But I think the bottom line is that they're still
Speaker 1: not there, and I don't think they'll get a deal today.
Speaker 1: And we've talked before about what the potential this could
Speaker 1: mean for the debt ceiling fight later on this year,
Speaker 1: getting appropriations passed later on this year as well, if
Speaker 1: we continue to see this kind of fractiousness. We're starting
Speaker 1: to hear as well from some lawmakers who are saying
Speaker 1: this stalemate could potentially risk US national security because Congress
Speaker 1: can't move till they get this matter resolved is is
Speaker 1: that taking things too far? Is there something to that? No,
Speaker 1: there's something to that. I mean it's easy to say
Speaker 1: Congress doesn't matter, but no, there are things that are
Speaker 1: really important. In the short term. What if there's a
Speaker 1: foreign policy crisis that needs immediate funding. What if the
Speaker 1: flooding continues in California it's quite severe as you know,
Speaker 1: maybe there's a need for aid to California. And the
Speaker 1: long term, the issue is going to be budget stuff.
Speaker 1: It will be the death ceiling, it'll be a possible
Speaker 1: default crisis. These are serious issues and if the if
Speaker 1: the House is this NEWTD, it's going to be difficult
Speaker 1: to deal with those issues. Does this have any implications
Speaker 1: for in terms of the politics, the way the parties
Speaker 1: are viewed after this fight, It will be interesting to
Speaker 1: see the polls. I haven't seen any of this week.
Speaker 1: I suspect will be sort of a pox on both
Speaker 1: your houses mentality, but in in to be you're realistic,
Speaker 1: I mean, this will blow up on Republicans. I think
Speaker 1: they are looking pretty bad, especially compared to Nancy Pelosi,
Speaker 1: who did a pretty good job as House Speaker. So no,
Speaker 1: I think as we go into the election, it would
Speaker 1: hurt Republicans in the House. The Senate is different. Of
Speaker 1: the seats up in the Senate favor the Republicans in
Speaker 1: this cycle, but I think the House could get a
Speaker 1: major pushback from voters if this is not resolved. And
Speaker 1: we'll see if We'll be checking back with you next
Speaker 1: week if this isn't resolved. Thanks as always for your time,
Speaker 1: Greg Valier, Chief US policy strategist at a GF Investments.
Speaker 1: The House gets back in session once again. Noon Wall
Speaker 1: Street time for day four, round twelve of voting for
Speaker 1: the Speaker of the House. SMP futures right now up
Speaker 1: three points, SOUND futures up thirty nine. NAS Deck futures
Speaker 1: down four points as investors await December payrolls. This is
Speaker 1: Bloomberg Markets headlines and breaking news twenty four hours a
Speaker 1: day at Bloomberg dot Com, the Bloomberg Business Outland at
Speaker 1: Bloomberg Quick Tape. This is a Bloomberg Business Flash and
Speaker 1: I'm Karen Moscow and US knock Index futures are little
Speaker 1: change as traders race for US jobs numbers do later
Speaker 1: that will help shart the path forward for Federal Reserve
Speaker 1: monetary tightening. We checked the markets all day long here
Speaker 1: on Bloomberg SMP futures are a little change down, futures
Speaker 1: up a tenth of a percent or thirty one points,
Speaker 1: and NASDAG future is now little change ten. Your treasury
Speaker 1: down four thirty seconds. You have three point seven three
Speaker 1: percent they yield on the two year four point four
Speaker 1: seven percent. NIMEX screwed oil is up one percent or
Speaker 1: seventy four cents at seventy four dollars forty one cents
Speaker 1: of barrel, and the euro one point oh five one
Speaker 1: two against the dollar. And that's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with Moore on what's going on
Speaker 1: around the world. Michael, good morning, Good morning, Karen dou
Speaker 1: His house reconvenes later today. As the speaker fight drags
Speaker 1: into a fourth day, Kevin McCarthy is trying to strike
Speaker 1: an agreement with GOP dissidents. A major storm that slammed
Speaker 1: into California has led to flooding down the trees and
Speaker 1: power outages across the state. Doctors say the mar Hamlin
Speaker 1: is beginning to awaken and is showing substantial improvement. The
Speaker 1: Buffalo Bill Safety went into Carniac arrest during Monday Night
Speaker 1: football doctor Say Hamblin's first question was did we win? Meanwhile,
Speaker 1: the NFL canceled the game between the Bills and Bengals.
Speaker 1: In hockey, Devils and Islanders lost, Ranges Bruins and Capitols
Speaker 1: one in the NBA, the Celtics one. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than a hundred twenty countries. Michael Barr and this
Speaker 1: is Bloomberg. Nathan love to hear that from mar Hamlin.
Speaker 1: Did we win? What a great partnersis? Thank you, Michael.
Speaker 1: It's on Wall Street, Nathan Hagar and this is Bloomberg Daybreak.
Speaker 1: When you hear someone say things are moving toward an
Speaker 1: iceberg usually doesn't mean anything good. And Carlisle, head of
Speaker 1: Global Research, Jason Thomas says that's where he thinks the
Speaker 1: US economy is headed. Thomas expects corporations to remain under
Speaker 1: pressure as the Federal Reserve keeps hiking interest rates. It's
Speaker 1: got the details from Jason Thomas. Now he spoke with
Speaker 1: Bloomberg's David and Glass and Evon Man. Can they use
Speaker 1: economy of void to recession. What do you think? Maybe,
Speaker 1: but but it does seem unlikely. And that's really because
Speaker 1: of the the the economy seems to be heading for
Speaker 1: an iceberg in the form of higher interest rates. Those
Speaker 1: higher interest rates have really not taken effect as yet
Speaker 1: for most borrowers. It's really the December nineteen reference date.
Speaker 1: So as of Q one floating rate, corporate borrowers are
Speaker 1: going to face UH debt service costs that are about
Speaker 1: fifty to six higher than they experience just six months ago.
Speaker 1: So I do think we're going to see increased levels
Speaker 1: of financial distress. Um, I'm speculative, great barrow. And of
Speaker 1: course that's going to cause a lot of management teams
Speaker 1: to change their behavior. Rather than a growth orientation, they're
Speaker 1: going to start to think about cost cutting and and
Speaker 1: this seems to me precisely how a recession gets propagated.
Speaker 1: And then, you know, you still have the likes of
Speaker 1: some FED speakers like Estra George, you know, speaking and saying,
Speaker 1: you know, she aspects the FED fundraise to be over
Speaker 1: five percent and stay there for much of four What
Speaker 1: with forced the FED to pivot? Then do you think, Jason,
Speaker 1: you know, all this talk of a pivot really seems
Speaker 1: so premature. As you alluded, I think that the FED
Speaker 1: right now is very concerned that inflation is going to
Speaker 1: remain stuck above four percent. Inflation has come down, obviously,
Speaker 1: price pressures have eased, the supply chain crisis is effectively over,
Speaker 1: but you still have lots of reasons to again fear
Speaker 1: that that inflation is going to remain elevated relative to
Speaker 1: the two percent target. First, you have wage growth at
Speaker 1: low skill levels. There there is still significant labor shortages
Speaker 1: low skill levels, earnings are growing at about a seven
Speaker 1: percent annualized rate overall wage growth, again consistent with roughly
Speaker 1: four percent inflation. And then, I think most consequentially, you
Speaker 1: still have management teams that got a taste for pushing
Speaker 1: price through over the past couple of years and are
Speaker 1: still looking to increase prices where possible, And I think
Speaker 1: really the only way for the FED to deter those
Speaker 1: additional rounds of price increases is to impress upon management
Speaker 1: teams that those price increases are going to result in
Speaker 1: lost sales or lost market share. And and again the
Speaker 1: only way to do that is to further restraint demand.
Speaker 1: So on the whole yes, I do expect another basis
Speaker 1: points at the February first meeting, perhaps another basis points thereafter,
Speaker 1: but that policy rate five five and a quarter percent
Speaker 1: perhaps is going to be sustained into and I think
Speaker 1: that's where markets are going to be very surprised that
Speaker 1: that could mean some additional upside for the dollar in
Speaker 1: the new term, but then also again more financial distress
Speaker 1: among speculative grade borrowers as they're forced to pay these
Speaker 1: higher floating rate interest costs for for a longer period
Speaker 1: than they anticipate. And that's the head of Global Research
Speaker 1: at the Carlisle Group, Jason Thomas, speaking with Bloomberg's David
Speaker 1: Englais and Avon Man. You can catch that full conversation
Speaker 1: on Bloomberg dot com and always on the Bloomberg terminal.
Speaker 1: SMP Future is right now up one point ahead of
Speaker 1: December Jobs, Dow futures up twenty one, nanastack futures down
Speaker 1: nine points ten, your treasuries down five thirty seconds, the
Speaker 1: yield three point seven three percent, yield on the two
Speaker 1: year four point four seven percent, name X cruise up
Speaker 1: nine percent at seventy four dollars thirty five cents of
Speaker 1: Barrel Comics gold is little change, down ninety cents eighteen
Speaker 1: thirty nine seventy announced. Up next, the latest on Kevin
Speaker 1: McCarthy's seemingly unending bid to be House speaker, plus what
Speaker 1: to expect from the December payrolls report that's coming up
Speaker 1: in thirty seconds. First, I'll look at your Bloomberg weather forecast.
Speaker 1: Scattered showers across the Tri State area today, They'll be
Speaker 1: tapering off this afternoon. We'll find temperatures between forty five
Speaker 1: and fifty Later today, it'll become partly cloudy. Overnight low
Speaker 1: thirty five downtown, twenties in the suburbs, partial sunshine for
Speaker 1: tomorrow heiste forty five. It will be clear thirty to
Speaker 1: thirty five Tomorrow night. Sunday morning sun afternoon clouds in
Speaker 1: higher forty to forty five. I'm Rob Carolyn with your
Speaker 1: three day forecast. I'm Bloomberg eleven three oh broadcasting live
Speaker 1: from the Bloomberg Interactive Broker Studio in New York. Bloomberg
Speaker 1: elving three to Washington, d C. Bloomberg to Boston, Bloomberg
Speaker 1: one oh six one to San Francisco, Bloomberg nine sixty
Speaker 1: to the country Sirius XM H one nine and around
Speaker 1: the globe, the Bloomberg Business and Bloomberg Radio dot com.
Speaker 1: This is Bloomberg Daybreak and it's coming up to five
Speaker 1: thirty on Wall Street. Good morning. I'm Karen Moscow, I'm
Speaker 1: Nathan hey Ger in Blueberg Daybreak is brought to you
Speaker 1: by Innovation Refunds to see if your small or medium
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Speaker 1: date on the news you need to know at this hour.
Speaker 1: We begin in Washington, where eleven rounds of voting have
Speaker 1: failed to elect a House speaker. Republican Leader Kevin McCarthy
Speaker 1: is still shy of the votes he needs. Former New
Speaker 1: York Congressman and Democratic Concuss chair Joe Crowley says the
Speaker 1: process is reflecting poorly on Republicans. What it really is
Speaker 1: demonstrating is that the functionality of the Republican Conference the
Speaker 1: end up second anniversary of January six. Do you now
Speaker 1: have members of the Republican Conference who actually supported that event.
Speaker 1: I don't think it's a visual that the Republicans really one,
Speaker 1: but it seems it's when they're gonna get farmer. Congressman
Speaker 1: Joe Crowley was a guest on Bloomberg. Sound On with Joe.
Speaker 1: Matthew catched the show weekdays at five pm Eastern on
Speaker 1: Bloomberg Radio. Well, Karen, Investors have their eyes on DC
Speaker 1: this morning. With the Labor Department set to release December
Speaker 1: Jobs Report about three hours from now, stay with us
Speaker 1: for complete coverage of the report, followed by an interview
Speaker 1: with Labor Secretary Marty Walsh that's coming up around nine
Speaker 1: am Wall Street Time. Well, Nathan, A. Job's report won't
Speaker 1: fully reveal how interest rates are impacting the labor market,
Speaker 1: but Carlyle, head of Global Research, Jason Thomas says investors
Speaker 1: need to gear up for some economic pain on the
Speaker 1: horizon fire. Interest rates have really not taken effect as yet.
Speaker 1: We're going to see increased levels of financial distress and
Speaker 1: of course, that's going to cause a lot of management
Speaker 1: teams to change their behavior. They're going to start to
Speaker 1: think about cost cutting. Car Lyles. Jason Thomas says he
Speaker 1: expects the FED to raise rates twenty five basis boys
Speaker 1: at each of its next two meetings, and as rates
Speaker 1: climbcarent St. Louis FED President James Bullard says they're approaching
Speaker 1: a well that could reduce inflation. Speaking yesterday, Bullard stopped
Speaker 1: short of it decating how high he wants rates to
Speaker 1: go right now, market surprising in a peak FED funds
Speaker 1: rate of five percent this summer. Let's turn to the
Speaker 1: f t X saga now, Nathan, US authorities are ramping
Speaker 1: up pressure on the inner circle of FTX co founder
Speaker 1: Sam Bankman, Freed, and Bloombergy. Steve Rappaport joins US Live
Speaker 1: with that story. Good morning Steve, Good morning Karen and Nathan.
Speaker 1: A new name emerges in the case against f B SPF.
Speaker 1: Prosecutors are focusing on former ft X engineering director Nishad Singh.
Speaker 1: He's not accused of wrongdoing at this time, but if
Speaker 1: authorities determined Singh played a role in the collapse of
Speaker 1: the company, a person familiar with the matter, says he
Speaker 1: could be charged later this month. Prosecutors already secured plea
Speaker 1: deals with two other associates of bankman Freed. He pled
Speaker 1: guilty this week two or not guilty rather to eight
Speaker 1: federal counts and will stand trial in October. Live in
Speaker 1: New York, I'm Steve Rappaport Bloomberg Daybreak. All right, Steve,
Speaker 1: thank you, and again, futures are little change this morning.
Speaker 1: Straight ahead, your latest local headlines, plus a check of sports.
Speaker 1: And this is Bloomberg in Science five thirty one on
Speaker 1: Wall Street and Michael Bars here with Laura on what's
Speaker 1: going on in New York and around the world. Michael,
Speaker 1: thank you very much. Nathan. Time is running out to
Speaker 1: avoid a possible nurses strink at several New York City hospitals.
Speaker 1: Members of the New York State Nurses Association say about
Speaker 1: ten thousand members are ready to walk out on Monday.
Speaker 1: Nurses say staffing levels have created unsafe conditions for patients.
Speaker 1: Five institutions, including Mount Sinai Health System, are still in
Speaker 1: talks toward a resolution. Three others have reached tentative agreements.
Speaker 1: President Biden will mark the second anniversary of the January
Speaker 1: sixth insurrection. With the ceremony today at the White House,
Speaker 1: Biden will present the Presidential Civilian Award to police officers
Speaker 1: who served on that day. One of those officers as
Speaker 1: Capitol Police officer Harry Dunn, who says he suffers from PTSD. Man.
Speaker 1: I thought I had this under control, I beat this,
Speaker 1: but no, it literally just came out of nowhere and
Speaker 1: it broke me. Officer Dunn's full interview will their Sunday
Speaker 1: on ABC's This Week Heard on Bloomberg. Meanwhile, former President
Speaker 1: Donald Trump is being blamed for the death of Capitol
Speaker 1: Police officer Brian sick Nik, who was assaulted during the
Speaker 1: Capitol riot. It's in a lawsuit from Sickneck's longtime partner
Speaker 1: that claims Trump is responsible because he riled up his
Speaker 1: supporters with false election claims and calls to take action.
Speaker 1: Vladimir Putin's proposed thirty six hours cease fire in Ukraine
Speaker 1: has drawn a cold shoulder from the US President. Biden
Speaker 1: calls it hypocrisy. I'm reluctant respond to anything. Prutent says,
Speaker 1: I found it interesting he was ready to um bomb
Speaker 1: hospitals and nurseries and um churches and on the twenty
Speaker 1: five and New Year's and I mean I think he's
Speaker 1: trying to find some oxygen. President Biden spoke after delivering
Speaker 1: remarks on immigration yesterday. Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Take, powered by
Speaker 1: more than journalists and analysts more than a hundred twenty countries.
Speaker 1: Michael Barr, this is Bloomberg Nathing. Thank you, Michael. Five
Speaker 1: thirty three on Wall Street Time for the Bloomberg Sports Update,
Speaker 1: brought to you by Trice State out of Here's John Stadshow.
Speaker 1: Thanks Nathan. Great news from Damar Hamlin's doctors in Cincinnati.
Speaker 1: The Buffalo Bill safety showing quote remarkable ahead of schedule improvement,
Speaker 1: said to be neurologically intact and responsive. Bill's quarterback Josh
Speaker 1: Allen met the media in Buffalo, and for the first time,
Speaker 1: I was asked what it was like being on the
Speaker 1: field this past Monday. You can never put yourself in
Speaker 1: that situation until it happens. Um. I want to think,
Speaker 1: are the coach mentioned it earlier? But our training staff
Speaker 1: for going out there not knowing what's going on, but
Speaker 1: going through a checklist, working as a single sales Synbia
Speaker 1: like saving his life. Hamlin's doctors said his first question
Speaker 1: was whether the Bills had won the game. As it
Speaker 1: turns out no one did. The game was of course stopped,
Speaker 1: and the NFL and out did will not be resumed.
Speaker 1: The game add significance and a f see playoffs seeding.
Speaker 1: There are reports the NFL is considering some changes in
Speaker 1: light of that regular season and Sunday last game for
Speaker 1: the Jets, limping to the finish with a five game
Speaker 1: wising spink. They visit Miami, who has also lost five
Speaker 1: in a row, but the Dolphins can make the playoffs
Speaker 1: with a win. And in New England lost in Buffalo.
Speaker 1: The Giants locked into the six scenes, so they're game
Speaker 1: in Philadelphia meaningless for them. Coach Brian day Ball has
Speaker 1: refused to say whether that means he'll sit out guys
Speaker 1: like Daniel Jones and say Kwan Barkley. It's a huge
Speaker 1: game for the Eagles. They've lost their last two. They
Speaker 1: need a win to gain the NFC's one seed, or
Speaker 1: they could be the five seed. Rangers won four one
Speaker 1: at Montreal. Losses for both the Devils and Islanders. John
Speaker 1: stash Award Bloomberg Sports all Right, John thank you, and
Speaker 1: the Bloomberg Sports Report was brought to you by Audie.
Speaker 1: Don't let someone else drive off and the outie model
Speaker 1: you've always wanted. Visit your local price state autie dealer
Speaker 1: to get behind the wheel of yours today, or visit
Speaker 1: autie offers dot com for more information. SMP futures up
Speaker 1: a point right now down futures up nineteen NASTAC features
Speaker 1: are lower by twelve points. Tenure treasure yield three point
Speaker 1: seven three percent three five thirty five. I should say
Speaker 1: on Wall Street it's time for the Tri State Business Report.
Speaker 1: For that, we bring in Bloomberg's that Cory New Jersey
Speaker 1: has taken in thirty one billion dollars in sports bets
Speaker 1: just four years after it became legal. The Post reports
Speaker 1: that's the most of any state in the country for
Speaker 1: that time period, but Jersey's lead is dwindling fast. New
Speaker 1: Yorkers are showing interest in sports gambling. In two more
Speaker 1: than fourteen billion dollars in bets were made in that state.
Speaker 1: The new two billion dollar terminal A at New Work
Speaker 1: Liberty Airport opens next Thursday. The new terminal was originally
Speaker 1: supposed to welcome flyers December eight but the opening was
Speaker 1: delayed last month due to last minute issues identified in
Speaker 1: the facility's fire alarm and security systems. New York Governor
Speaker 1: Kathy Hokele has signed a bill into law that would
Speaker 1: ban p FASS in clothing by the end of the year.
Speaker 1: The chemicals are a known andocrine disruptor prevalent in clothing
Speaker 1: and other everyday aspects of life, from takeout containers to
Speaker 1: nonstick cookware. That your Bloomberg Try State Business Report mym
Speaker 1: Ed Corey, Thank you. Edit's five thirty six on Wall Street.
Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial
Speaker 1: was written by the Bloomberg Editorial Board. Say this for
Speaker 1: the new Republicans in Congress. They made history. Now they
Speaker 1: need to start making an agenda. This week, a handful
Speaker 1: of far right House Republicans revolted against the party's leading
Speaker 1: candidate for Speaker, Kevin McCarthy, denying him the majority he
Speaker 1: needed to win. It was the first time in a
Speaker 1: century that House lawmakers failed to elect a speaker on
Speaker 1: the first ballot. The House can't take up business without
Speaker 1: a speaker, which means a small group of right wing
Speaker 1: extremists is holding Congress hostage. This is what happens when
Speaker 1: a political party effectively ignores public policy. After a campaign
Speaker 1: that emphasized cultural war issues over an actual governing agenda,
Speaker 1: House Republicans have found themselves in power without a plan.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Boomberg dot com, slash
Speaker 1: opinion or OPI n go on the Bloomberg Terminal. These
Speaker 1: has been Bloomberg Opinion and you can hear Bloomberg opinion
Speaker 1: editorials every weekday. At this time, terminal customers can read
Speaker 1: more at O P I n go. In corporate news
Speaker 1: this morning, Tesla has made another round of price cuts
Speaker 1: on its Model three and Model Y electric vehicles in China.
Speaker 1: Starting price for a locally built Model Y SUV has
Speaker 1: been slashed to thirty eight thousand dollars. That is forty
Speaker 1: three percent cheaper that you can find it in the US.
Speaker 1: Tesla has been cutting prices as it faces renewed competition
Speaker 1: in China. Stay with us, we'll get you a preview
Speaker 1: of the December payrolls report what it could mean for
Speaker 1: the path ahead for federal reserve policy. Drew Madis, chief
Speaker 1: investment strategist at Medlife Investment Management, joins us on this
Speaker 1: job's Friday. In the minutes ahead, you're listening to Bloomberg
Speaker 1: day Break, good morning markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com. A Bloomberg
Speaker 1: business at hand. At Bloomberg Quick Tape, this is a
Speaker 1: Bloomberg business lash and I'm parent Moscow. European shares and
Speaker 1: Wall Street futures are struggling to maintain gains as traders
Speaker 1: of race for US jobs numbers that are due later
Speaker 1: this morning that will help chart the path forward for
Speaker 1: Federal Reserve monetary tightening. We check the markets all day
Speaker 1: long here on Bloomberg. SNP futures that will change now
Speaker 1: Future is up tenth of a percent or thirty three points,
Speaker 1: and nedsday futures are little change when the decks in
Speaker 1: Germany also little change. Ten your treasury down three thirty seconds.
Speaker 1: You have three point seven two percent the yield on
Speaker 1: the two year four point four seven percent. Nimex screwed
Speaker 1: oil is up seven tenths per cent, or fifty three
Speaker 1: cents at seventy one cents a barrel. Comex School that
Speaker 1: will change in eighteen forty seventy announce the euro one
Speaker 1: point oh five one two against the dollar, British on
Speaker 1: one five six and one thirty four point to nine,
Speaker 1: and bitcoins down three tens of percent. It said about
Speaker 1: sixteen thousand, seven ninety dollars and that's a Bloomberg business flash.
Speaker 1: Now here's Michael Barr with more on what's going on
Speaker 1: around the world. Michael Karen. The House which turns today
Speaker 1: to try again to end the stalemate over choosing to
Speaker 1: speak here after days of voting with no conclusion. Party
Speaker 1: leader Kevin McCarthy is determined to win over enough of
Speaker 1: hello Republicans and has offered the Conservative holdouts rule changes
Speaker 1: to give them more power. Several days after he went
Speaker 1: into cardiac arrest. Doctors say Bills safety to Marrow Hamlin
Speaker 1: is beginning to awaken and is showing substantial improvement. Dr
Speaker 1: say Hamlin's first question was did we win? Meanwhile, the
Speaker 1: NFL canceled the game between the Bills and Bengals. In hockey,
Speaker 1: the Devils and Islanders lost, the Rangers, Bruins and Capitol's
Speaker 1: one in the NBA, the Celtics one. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalist and analyst
Speaker 1: more than a hund twenty countries. Michael Bard, this is
Speaker 1: Bloomberg Naked all right, Michael, thank you. It is five
Speaker 1: forty two on Wall Street. This is Bloomberg Daybreak. I'm
Speaker 1: Nathan Hagar along with Karen Moscow taking a look at
Speaker 1: some other stories making news this morning, including a development
Speaker 1: in the world of professional wrestling. Vince McMahon, controlling shareholder
Speaker 1: a World Wrestling Entertainment, is looking back or to get
Speaker 1: back into the day to day running of the company.
Speaker 1: Mcmanhn's proposing to put himself and to other executives back
Speaker 1: on the w w E board, and Bloomberg's Charlie Pellett
Speaker 1: has more. In a statement, McMahon, who retired last year
Speaker 1: amid allegations of sexual misconduct, is seeking to return to
Speaker 1: w w E as chairman. He's also nominating former executives
Speaker 1: George Barrios and Michelle Wilson to the board and is
Speaker 1: seeking a strategic review of the business. The executive who
Speaker 1: ran the wrestling Giant for decades, said that with its
Speaker 1: TV rights coming up for renewal. It's a good time
Speaker 1: to review the company options in New York. Charlie Pellette
Speaker 1: bloom Bird Daybreak, Thank you Well, here's an ominous sign
Speaker 1: for consumers. More Americans are turning to credit cards to
Speaker 1: pay everyday expenses. According to the Census Bureau, more than
Speaker 1: thirty five of households use credit cards or loans in
Speaker 1: December to cover spending needs. That's up from reading just
Speaker 1: eighteen months ago. It's a sign that households hit hard
Speaker 1: by inflation or finding their regular income is not enough
Speaker 1: to make ends meet. Meanwhile, while we wait for the
Speaker 1: December jobs report, it turns out a typical nine to
Speaker 1: five job is not so typical anymore. New data from
Speaker 1: the International Labor Organization shows more than half the global
Speaker 1: workforce either works too much or too little. The report
Speaker 1: shows the average work week runs about forty three point
Speaker 1: nine hours. At the same time, about a third of
Speaker 1: employees have a work week of more than forty eight hours.
Speaker 1: Well a fifth work part time or less than thirty
Speaker 1: five hours a week. Nathan a very nicely for what
Speaker 1: we're going to get when it comes to the health
Speaker 1: of the overall labor market. We're about to get our
Speaker 1: final glimpse at what jobs look like in two and
Speaker 1: the Labor Department releases December payrolls in just about oh
Speaker 1: two hours and forty five minutes now springing. Drew Maddis,
Speaker 1: chief market strategist at Medlife Investment Management, Drew, good morning.
Speaker 1: What's the trajectory you see for job growth? Well, I'm
Speaker 1: not too far off from where the consensus is for
Speaker 1: this month's job growth numbers, but I think you know
Speaker 1: the most that story is the perfect story for where
Speaker 1: I think the important area to look at lies, which
Speaker 1: is how much are these people who are hired being
Speaker 1: being worked? Right? Um, what we really what I'm really
Speaker 1: cautious about looking at is that hours work number because
Speaker 1: I think what may be happening is firms are hiring
Speaker 1: people that maybe they don't necessarily need because it's been
Speaker 1: so difficult to hire people for such a long period
Speaker 1: of time. So when someone becomes available, they hire them, uh,
Speaker 1: and then they don't work them as much as as
Speaker 1: maybe they would work other workers, and that work week
Speaker 1: number begins to decline. And I think that's what we're
Speaker 1: likely to see this this month, is that we'll get
Speaker 1: a pretty good jobs number, but maybe the work week
Speaker 1: is a little on the soft side. Not At the
Speaker 1: same time, we keep hearing drew about pretty high profile
Speaker 1: job cuts in the financial sector the tech sector as well,
Speaker 1: and it's starting to raise the question about whether some
Speaker 1: of those laid off workers are going to be matched
Speaker 1: into the jobs that are still available. Are we still
Speaker 1: expecting to see uh, something of a mismatch there when
Speaker 1: it comes to job openings and labor force participation. Well,
Speaker 1: I think you might. And I also think that, you know,
Speaker 1: one of the things to look at, particularly in a
Speaker 1: December payroll number, is you don't really want to look
Speaker 1: too hard at retail and you don't really want to
Speaker 1: look too hard at things like struction, right because there's
Speaker 1: not a lot of construction going on in the winter.
Speaker 1: Um And so you you really I mean, not that
Speaker 1: there's got to be a core to every economics report
Speaker 1: out there, but you do want to exclude the ones
Speaker 1: that are that are more likely to be a seasonal
Speaker 1: factor adjustment rather than kind of a true job gain,
Speaker 1: um And and look beyond that to kind of things
Speaker 1: like the manufacturing sector and likewise to see what the
Speaker 1: job growth looks like. And I think they're the job
Speaker 1: growth will be okay. Um, where I think it will
Speaker 1: turn is actually next next quarter, because a lot of
Speaker 1: companies do planning processes in the fourth quarter and then
Speaker 1: execute on them in the first quarter. And that includes
Speaker 1: planning for things like jobs. It sounds like we may
Speaker 1: have lost you their jury. You still with us? I
Speaker 1: am okay, can you hear me? It includes planning for
Speaker 1: things like jobs, job cuts, whether or not they're going
Speaker 1: to hire people. Um. You know. So the plan that
Speaker 1: they're going to execute their putting in place now the
Speaker 1: x acute or they put in place in the fourth quarter,
Speaker 1: and they'll executed over the course of the next year.
Speaker 1: And that means if there's gonna be a turn in
Speaker 1: the jobs numbers, it's gonna come with the reports out
Speaker 1: and let's say March and April that come out for
Speaker 1: February and March. Okay, So when we start start to
Speaker 1: see that execution take place, what's the implication on what
Speaker 1: we could see in terms of wage growth? Are we
Speaker 1: still expecting that we're going to see the kind of
Speaker 1: wage pressures that the FED doesn't want to see and
Speaker 1: they could potentially keep rates moving higher. Well, yes, I
Speaker 1: think you know that the prospects for decent wage games
Speaker 1: are likely, but you know, they are heavily concentrated in
Speaker 1: kind of lower wage industry. So you know, as we
Speaker 1: start the new year, we're gonna see things like new
Speaker 1: minimum wages going you know, minimum wages going up in
Speaker 1: a number of states. That will have an effect on things.
Speaker 1: And we also have to bear in mind, you know,
Speaker 1: once again, a lot of the wage games are not
Speaker 1: coming from kind of like the middle upper middle class,
Speaker 1: are coming from workers who are working closer to the
Speaker 1: minimum wage boundary. Uh. And while that may be a
Speaker 1: good thing from a societal standpoint, um, it's important to
Speaker 1: bear in mind it's not really doing a lot for
Speaker 1: kind of the higher income tears that are also struggling
Speaker 1: with inflation in order to maintain their center of living.
Speaker 1: Is there a point that the unemployment rate needs to
Speaker 1: get to an order for the FED to consider pivoting.
Speaker 1: Is there a correlation there. I'm not sure if there's
Speaker 1: a correlation, but they basically pointed to it in their
Speaker 1: last set of economic projections. Um, well, let let me
Speaker 1: turn it around. There's a level of inflation they'll tolerate
Speaker 1: before they start cutting interest rates. Um, And that level
Speaker 1: was not two percent you know, in the summary of
Speaker 1: economic projections, they're cutting interest rates when inflation is still
Speaker 1: well above two percent UM, and so that tells you
Speaker 1: that the toleration level, given their unemployment forecasts in the
Speaker 1: mid fours, is probably more predicated on how fast unemployment
Speaker 1: moves rather than a than a point level. Our last
Speaker 1: thirty seconds here, Drew, is the December report a pivot
Speaker 1: point for the Fed when it comes to deciding what
Speaker 1: level of an interest rate hike we could see next month.
Speaker 1: It's one of the last data points, So it's gonna
Speaker 1: be this and the inflation numbers UM and uh, you know,
Speaker 1: maybe even the retail sales numbers, because you know, we
Speaker 1: keep waiting for the consumer to drop off. Data dependence
Speaker 1: always the way for this Federal Reserve. Thank you as always.
Speaker 1: Drew maddis joining us on this Job's Friday, chief market
Speaker 1: strategist at MetLife Investment Management. Again, will the numbers come out?
Speaker 1: Eight thirty Wall Street time. We'll have full coverage for
Speaker 1: you ahead of a conversation with Labor Secretary Marty Wall.
Speaker 1: She'll be joining us on Bloomberg Radio and television. Tune
Speaker 1: back in for that conversation. It's set for around ninety
Speaker 1: five Wall Street time, about an hour after the payrolls
Speaker 1: print comes out. SMP futures right now up three points,
Speaker 1: staff futures up forty NASTAC futures down eight points. This
Speaker 1: is Bloomberg Markets, headlines and breaking news, twenty four hours
Speaker 1: a day at Bloomberg dot Com, the Bloomberg Business at
Speaker 1: Land at Bloomberg Quicktape. He's a Bloomberg business flash and
Speaker 1: I'm Karen Moscow. Isn't P futures It will changed on
Speaker 1: this job's day. And we checked the markets all day
Speaker 1: long here on Bloomberg again us in P futures, it
Speaker 1: will change down futures up a tenth of upper cent
Speaker 1: or thirty three points, and as day futures down two
Speaker 1: tens of uppercent or twenty points. In the ten year
Speaker 1: treasury down four thirty seconds, you'll three point seven three percent.
Speaker 1: They yield on the two year four point four seven percent.
Speaker 1: Nine X screwed oils up seven tenths percent, or forty
Speaker 1: nine cents at seventy four dollars sixteen cents of barrel
Speaker 1: and comx s called up a tenth of a percent
Speaker 1: of a dollar seventy and eighteen forty two thirty announced,
Speaker 1: and that's a Bloomberg Business Flash. Nathan Karen, thank you.
Speaker 1: We're coming up on five fifty six on Wall Street
Speaker 1: timed down for our daily Bloomberg Labrief, exploring legal issues
Speaker 1: in the news, and today we focus on the big
Speaker 1: name elite law firm Prostcauer Rose Company is suing its
Speaker 1: former chief operating officer, Jonathan O'Brien, accusing him of swiping
Speaker 1: more than thirty four gigabytes of sensitive confidential documents, including
Speaker 1: electronic files related to the firm's financials, practice information and
Speaker 1: billing rates. A federal judge in Manhattan's given O'Brien till
Speaker 1: five o'clock this afternoon to return any proprietary or confidential information.
Speaker 1: O'Brien denies the allegations through his attorney. For more on
Speaker 1: the case, Bloomberg's June Grosso speaks with attorney Jeff Lewis
Speaker 1: of Jeff Lewis Law. Proscauer, which is nearing it's a
Speaker 1: hundred and fifty anniversary, said the firm is unaware of
Speaker 1: any employee, much less an officer, ever acting in such
Speaker 1: a corrupt, debased, and illegal manner. Have you heard of
Speaker 1: anything like this at any other law firm. No, I've
Speaker 1: handled trade secrets litigation cases, not in the law firm
Speaker 1: context with this kind of thing happened, uh to scruntled
Speaker 1: employee goes to work for a competitor, But I've never
Speaker 1: read such a high level employee of a big offer
Speaker 1: of doing this. In the complaint, Proskauer calls him a
Speaker 1: crafty plotter and describes his steel list. From your look
Speaker 1: at it, has he allegedly taken information that's very important
Speaker 1: to the firm. That would be something considered like trade secrets. Absolutely,
Speaker 1: it's one thing for an employee to leave one firm
Speaker 1: and work for another. Things that reside in an employee's
Speaker 1: head stay in his head, and that's not a protectable
Speaker 1: trade secret. But when you take a thumb drive and
Speaker 1: you bypass security and you download compensation of various partners
Speaker 1: or how various practice areas are doing within a firm,
Speaker 1: you're giving a playbook to a competitor who could use
Speaker 1: that to strategize how to pick off or take practice
Speaker 1: areas clients or partners or associates from a competing offer.
Speaker 1: Can you tell from the papers if any client information
Speaker 1: was accessed. It's pretty clear that client information was not access.
Speaker 1: But I'll tell you one thing that I found interesting.
Speaker 1: There's a suggestion there are an accusation that he lifted
Speaker 1: a litigation hold and caused thousands of his emails to
Speaker 1: be deleted, and if true, there may be some loss
Speaker 1: there of client related data. So forgetting what he put
Speaker 1: in his pocket, in terms of what the firm lost
Speaker 1: access to, there's a lot of the emails with pending
Speaker 1: litigation that will never see the light of day because
Speaker 1: of what this guy did. Prostauer is this billion dollar
Speaker 1: law firm, and you know it's got a great name,
Speaker 1: and what kind of a hit does it take to
Speaker 1: its reputation from something like this. Well, think about this,
Speaker 1: if you're a client and your rely on this law
Speaker 1: firm to protect your secrets. If they can't keep their
Speaker 1: own house in order and keep their own secret secret,
Speaker 1: and one major security measure can be overturned with one
Speaker 1: person directive to an I T person, claients might become
Speaker 1: doubtful that firm's ability to safegard client data, and employees
Speaker 1: and partners of that firm may have concerned about the
Speaker 1: leadership and security of their files and whether or not
Speaker 1: their houses being under an appropriate Fashion. That's attorney Jeff
Speaker 1: Lewis speaking with Bloomberg's June Gross. Help catch more of
Speaker 1: that interview, plus analysis of the latest legal news by
Speaker 1: subscribing to the Bloomberg Law Podcast. You can download the
Speaker 1: show by going over to Bloomberg dot com, Slash podcasts,
Speaker 1: and attorneys can find exceptional legal research and business development
Speaker 1: tools at Bloomberg Law dot com and on the Bloomberg
Speaker 1: terminal at b Law. Go futures flat on this Job's
Speaker 1: Friday Up. Next, we head to Day four, Kevin McCarthy
Speaker 1: Speakership Fight, and count down to December. Pay rolls Our
Speaker 1: two of Bloomberg Daybreak starts right now.