WEBVTT - Bloomberg Daybreak: December 23, 2022 - Hour 1 (Radio) 0:00:02.200 --> 0:00:05.400 Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg 0:00:05.519 --> 0:00:08.959 Day Right for Friday, December twenty two. Coming up, the 0:00:09.039 --> 0:00:11.840 tower markets look for gains ahead of the holidays and 0:00:11.920 --> 0:00:15.520 make concerns over fed tightening. A January six committee releases 0:00:15.520 --> 0:00:19.120 a scathing report with blame focusing on former President Trump, 0:00:19.440 --> 0:00:22.880 Sam Bankman freed released on a massive bail payment and 0:00:22.960 --> 0:00:26.960 starring COVID cases threatened China's economy. People taking planes, trains, 0:00:26.960 --> 0:00:29.880 and automobiles are hoping a window storm does not play 0:00:29.960 --> 0:00:33.000 Gridge with holiday travel plans, plus a fire on a 0:00:33.040 --> 0:00:36.200 New York ferry. I'm Michael bar More Ahead, I'm John 0:00:36.200 --> 0:00:39.400 stash Shower, That jets Lutheran Street continued to struggling offense 0:00:39.440 --> 0:00:42.159 and a home lost to Jacksonville. The Rangers beat the Islander. 0:00:44.560 --> 0:00:48.519 That's all Train ahead on Bloomberg Daybreak on Bloomberg eleven 0:00:48.560 --> 0:00:53.080 three on New York, Bloomberg one, Washington, d C, Bloomberg 0:00:53.080 --> 0:00:56.800 one oh six one, Boston, Bloomberg nine sixties and Francisco 0:00:57.280 --> 0:01:00.240 Syrius x M one nineteen and around the world Old 0:01:00.240 --> 0:01:03.760 on Bloomberg Radio dot Com and via the Bloombird Business Up. 0:01:07.800 --> 0:01:10.680 Good morning, I'm Nathan Hagar and I'm Karen Moscow, and 0:01:10.800 --> 0:01:13.840 US stock index futures are little change this morning. We 0:01:14.000 --> 0:01:16.560 checked the markets all day long here on Bloomberg Radio 0:01:16.640 --> 0:01:19.600 with SNP futures that will change down. Future is higher 0:01:19.640 --> 0:01:22.480 up to tens of upper center sixty points and nowsday 0:01:22.560 --> 0:01:25.040 futures down about a tenth of upper center nine points. 0:01:25.040 --> 0:01:28.080 Tenure Treasury down five thirties seconds. He had three point 0:01:28.120 --> 0:01:30.520 six nine percent and a yield on the two year 0:01:30.800 --> 0:01:34.000 at four point to seven per cent. Nathan Karen, So 0:01:34.000 --> 0:01:36.840 we're kind of treading water this morning. After stock snapped 0:01:36.880 --> 0:01:40.679 a three day wind streak yesterday. The latest strong economic 0:01:40.760 --> 0:01:43.800 data are validating the case of the Federal Reserve can 0:01:43.880 --> 0:01:47.000 keep tightening monetary policy. That's set a down beat tone 0:01:47.040 --> 0:01:50.120 for the week. Tech stocks in particular, on course for 0:01:50.160 --> 0:01:54.160 their worst December since the dot com bubble burst. Namura's 0:01:54.200 --> 0:01:56.800 head of cross At Strategies, Matthew Rose, says, it's a 0:01:56.880 --> 0:02:06.760 sign of a broader market trend, getting of that addiction 0:02:06.840 --> 0:02:10.280 to zero interest rate, free ride on risk, and that's 0:02:10.280 --> 0:02:12.800 why I think is going to be the year of credit, 0:02:13.160 --> 0:02:17.320 because most investors haven't had to contemplate rising implied in 0:02:17.400 --> 0:02:21.280 actual default rates, you know, eroding credit markets, widening credit spreads. 0:02:21.520 --> 0:02:24.440 So it's gonna be an interesting education and path for investors. 0:02:24.720 --> 0:02:27.000 Matthew Row with Namura says growth stocks will be the 0:02:27.000 --> 0:02:31.240 biggest pain trade in Well Nathan Investors get more data 0:02:31.280 --> 0:02:34.079 to digest today, just ahead of the holiday weekend, and 0:02:34.080 --> 0:02:37.480 Bloomberg has any down to Judas has a preview. In October, 0:02:37.520 --> 0:02:41.680 consumer spending adjusted for inflation posted the largest increase since 0:02:41.760 --> 0:02:44.440 the start of the year. Today's rape board could tell 0:02:44.440 --> 0:02:48.919 a different stories. Inflation chips away at household finances. Preliminary 0:02:49.040 --> 0:02:51.800 data show November retail sales dropped by the most in 0:02:52.080 --> 0:02:56.160 nearly a year. Also on today's data agenda, new home sales, 0:02:56.639 --> 0:02:59.480 Nat Del Judace Bloomberg Day breaks right, Vinnie, thank you. 0:02:59.480 --> 0:03:02.240 I'm really get one more notable data point at ten am, 0:03:02.280 --> 0:03:06.320 Wall Street time with the University of Michigan Consumer Sentiment Index. 0:03:06.400 --> 0:03:08.640 That report has proved to be a market mover in 0:03:08.680 --> 0:03:11.560 recent months. Let's turn to markets in Asia, now, Karen, 0:03:11.600 --> 0:03:15.040 we saw weakness across several markets. They're ahead of the weekend. 0:03:15.120 --> 0:03:18.760 Bloomberg's Brian Curtis has more on that story. Asian equities 0:03:18.800 --> 0:03:22.520 tracked lower after a slump in US technology stocks. Strong 0:03:22.639 --> 0:03:25.519 US economic data strengthened the case for the Fed to 0:03:25.639 --> 0:03:29.360 continue raising interest rates as tech index led the falls, 0:03:29.639 --> 0:03:34.200 but weakness was also seen in Japan, Australia and South Korea. Elsewhere, 0:03:34.240 --> 0:03:37.360 oil headed for a big weekly gain. Has China shift 0:03:37.400 --> 0:03:41.640 away from COVID zero bolster the outlook for demand? Brian Curtis, 0:03:41.680 --> 0:03:44.760 Bloomberg Daybreak Right, Brian, thank you. Meanwhile, in China, a 0:03:44.760 --> 0:03:48.400 complete reversal in COVID policy is not having the effect 0:03:48.400 --> 0:03:52.760 officials initially intended. COVID infections are soaring and keeping people 0:03:52.800 --> 0:03:55.880 at home, causing US slump and travel and economic activity. 0:03:56.200 --> 0:03:58.960 People in Beijing and other major Chinese cities have been 0:03:59.080 --> 0:04:01.840 hit by an exit wave of infections that they're being 0:04:01.920 --> 0:04:04.720 encouraged to return to work even if they're sick. Now, 0:04:04.800 --> 0:04:08.360 let's turn to a major note in politics in this country. Karen. 0:04:08.720 --> 0:04:11.520 The House committee investigating the January sixth attack on the 0:04:11.560 --> 0:04:14.800 US capital has released its final report on the insurrection, 0:04:14.840 --> 0:04:17.680 and it cast the blame on former President Donald Trump, 0:04:17.800 --> 0:04:21.159 specifically for inciting violence to try to hold onto power. 0:04:21.520 --> 0:04:24.720 The eight hundred fourteen page report details Trump's efforts to 0:04:24.760 --> 0:04:28.839 pressure state officials and the Justice Department overturned the election. 0:04:29.200 --> 0:04:32.159 The committee also recommends that Congress establish a mechanism that 0:04:32.160 --> 0:04:35.160 would formally bar Trump and others identified in the report 0:04:35.360 --> 0:04:39.279 from holding any government or military office under the fourteenth Amendment. 0:04:39.760 --> 0:04:42.720 Well turning to Tesla, now, Nathan, after offloading a massive 0:04:42.760 --> 0:04:46.119 sum of Tesla's shares this here, CEO Elon Musk says 0:04:46.160 --> 0:04:49.159 he will not be selling shares for a while. Bloomberg 0:04:49.160 --> 0:04:52.239 Steve Rappaport joins US Live. But that story Steve, good morning, 0:04:52.320 --> 0:04:55.400 Good morning, Karen. And Nathan. Musk sold almost forty million 0:04:55.440 --> 0:04:58.360 dollars of Testla shares, mostly to fund his purchase of Twitter. 0:04:58.520 --> 0:05:00.679 Now he's ready to take a break. I'm not selling 0:05:00.680 --> 0:05:04.840 any stock for I don't know, but quote a minimum 0:05:04.960 --> 0:05:07.240 eight seens or twenty four months, so you can count 0:05:07.240 --> 0:05:09.880 on me. Like most no stock sales will probably out 0:05:09.920 --> 0:05:13.400 of twenty five or something. Musk's declaration was in response 0:05:13.440 --> 0:05:16.400 to a question from longtime investor Ross Gerber, who challenged 0:05:16.440 --> 0:05:20.000 the CEO's leadership of the electric vehicle maker. Shareholders seemed 0:05:20.000 --> 0:05:22.279 pleased with the announcement, with test Less stock rising as 0:05:22.360 --> 0:05:24.680 much as three and a half percent in pre market trading. 0:05:24.880 --> 0:05:28.200 Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks, 0:05:28.279 --> 0:05:30.039 Let's turn to Crypto now. In the latest on f 0:05:30.080 --> 0:05:33.240 t X and Sam Bankman Freed, the Crypto Exchanges former 0:05:33.320 --> 0:05:35.960 CEO was released on a massive bail package after he 0:05:35.960 --> 0:05:38.360 made his first U S court appearance yesterday. That deal 0:05:38.400 --> 0:05:41.560 includes a twodred fifty million dollar personal or cognizance bond 0:05:41.600 --> 0:05:44.360 that was secured by his parents home in California. One 0:05:44.400 --> 0:05:47.200 federal prosecutor called it one of the largest pre trial 0:05:47.279 --> 0:05:50.880 bonds in US history. Sam Bankman Freed is facing fraud 0:05:50.960 --> 0:05:53.080 charges over the collapse of f t X. His next 0:05:53.120 --> 0:05:56.599 court appearance is scheduled for January three, well as the 0:05:56.640 --> 0:06:00.360 ft X saga plays out. Nathan SEC chair Gary Bnsler 0:06:00.480 --> 0:06:03.480 is saying the agency's patients is wearing thin for digital 0:06:03.520 --> 0:06:07.200 asset exchanges and other firms that shir gets regulations. Don 0:06:07.279 --> 0:06:10.240 Krisner joins US with that story. In an interview yesterday, 0:06:10.520 --> 0:06:14.000 SEC chair Gary Gensler said the agency's patients is wearing 0:06:14.080 --> 0:06:17.760 thin for digital asset exchanges and other firms that shirt 0:06:17.800 --> 0:06:21.400 gets regulations. Gensler said the runway is getting shorter to 0:06:21.520 --> 0:06:24.760 start following rules and register with the agency. He also 0:06:24.800 --> 0:06:29.520 said the casinos in this wild West are non compliant intermediaries. 0:06:29.720 --> 0:06:33.880 Gensler also declined to identify firms facing scrutiny or common 0:06:34.000 --> 0:06:36.480 on where the probe of ft X may go next. 0:06:36.839 --> 0:06:39.640 In New York, I'm Doug Prisoner Bloomberg daybreak. All right, Doug, 0:06:39.680 --> 0:06:42.200 thank you. Finally oil has headed for a substantial weekly 0:06:42.240 --> 0:06:44.960 gain as Russia says it may cut crude production in 0:06:45.000 --> 0:06:47.560 response to the price cap imposed by the G seven 0:06:47.560 --> 0:06:50.240 on its exports. Right now, nimex s crudes up two 0:06:50.320 --> 0:06:53.440 point one percent at seventy nine dollars fourteen cents of barrel. 0:06:53.760 --> 0:06:57.240 Straight ahead, your latest local headlines span the check of Sports. 0:06:57.279 --> 0:07:04.960 This is Bloomberg. It's fifty five degrees right now in 0:07:05.080 --> 0:07:08.120 Central Park, raining, but rain is gonna end early, and 0:07:08.160 --> 0:07:11.560 then temperatures are gonna sink like a stone this afternoon, 0:07:11.600 --> 0:07:15.080 down to the low teens. Tonight, let's gonna look at 0:07:15.080 --> 0:07:16.880 some of the other stories making news in New York 0:07:16.920 --> 0:07:20.400 and around the world with Bloomberg's Michael Barre. You're ready 0:07:20.400 --> 0:07:24.200 for this deep freeze. Michael h No, but yeah, but 0:07:24.320 --> 0:07:27.480 neither are two million Americans. But it's going to affect 0:07:27.640 --> 0:07:31.679 many people because of this massive winners storm rolling across 0:07:31.720 --> 0:07:34.720 the country. Here in the Try State area, temperatures the 0:07:34.840 --> 0:07:39.320 forecast to plummet around thirty degrees in just hours, freezing 0:07:39.360 --> 0:07:42.640 any rain already on the roads. Strong winds, snow, and 0:07:42.720 --> 0:07:45.760 flooding are also part of the storm. This woman lives 0:07:45.840 --> 0:07:48.120 in lynden Hurst, New York, where she says there was 0:07:48.160 --> 0:07:50.960 flooding from heavy rain just last week. I do get 0:07:51.000 --> 0:07:53.280 nervous as far as losing power and just trying to 0:07:53.320 --> 0:07:55.240 manage what we're gonna do, as far as eating and 0:07:55.280 --> 0:07:57.520 just making sure we have the heat on. Hundreds of 0:07:57.560 --> 0:07:59.800 flights have already been canceled or delayed in the Tri 0:08:00.000 --> 0:08:03.680 State area. Meanwhile, President Biden more Americans to take the 0:08:03.720 --> 0:08:09.360 storm seriously. It goes from Oklahoma all the way to Wyoming, 0:08:09.400 --> 0:08:12.600 and Wyoming the main and it's a real consequence. So 0:08:12.640 --> 0:08:17.760 I encourage everyone everyone please heat the local warning, the 0:08:17.800 --> 0:08:20.280 President says, it's not like a snow day when you 0:08:20.320 --> 0:08:23.480 were a kid. This is serious stuff. Hundreds of New 0:08:23.560 --> 0:08:26.160 York City commuters had to be evacuated from a Staten 0:08:26.200 --> 0:08:29.480 Island Ferry after a fire broke out on board last evening. 0:08:29.840 --> 0:08:32.600 Officials say there were no major injuries, but at least 0:08:32.600 --> 0:08:36.120 five people are being treated for smoke inhalation. Officials say 0:08:36.120 --> 0:08:40.680 workers quickly detected the fire, activated a high texaspression system, 0:08:40.960 --> 0:08:44.400 and sealed the flames behind air tight doors. F D 0:08:44.520 --> 0:08:47.920 n Y Deputy Chief Frank Lee praised the crew members 0:08:47.920 --> 0:08:50.760 for their response. This is the way the system is 0:08:50.760 --> 0:08:55.199 supposed to happen. When is it June fire? Just supposed 0:08:55.200 --> 0:08:57.280 to notify the coast guard and then you're supposed to 0:08:57.320 --> 0:08:59.040 make sure that you seal it and get the people 0:08:59.040 --> 0:09:01.360 out of the way. So everybody acted the way that 0:09:01.640 --> 0:09:03.719 the way I would expect him to. The f D 0:09:03.840 --> 0:09:08.280 mmise Frank leaps as passengers filed downstairs and evacuated onto 0:09:08.320 --> 0:09:11.880 other ferries which had race to help. A Connecticut judge 0:09:11.880 --> 0:09:15.680 denied Info Wars host Alex Jones's motion seeking a new 0:09:15.720 --> 0:09:19.080 trial and the overturning of a jury verdict requiring him 0:09:19.080 --> 0:09:21.439 to pay hundreds of millions of dollars to families of 0:09:21.520 --> 0:09:25.000 victims of the Sandy Hook Elementary School shooting for years. 0:09:25.080 --> 0:09:29.400 Jones described the twenty twelve shootings in Newtown as a hoax. 0:09:30.040 --> 0:09:32.680 Global News twenty four hours a day on air and 0:09:32.880 --> 0:09:36.000 on Bloomberg Quicktake, powered by more than twenty seven hundred 0:09:36.040 --> 0:09:38.959 journalists and analysts more than a hundred twenty countries. Michael 0:09:39.000 --> 0:09:42.439 Barr and this is Bloomberg. Nathan. All right, Michael, thank you. 0:09:47.120 --> 0:09:48.920 Coming up to five ten on Wall Street time for 0:09:48.920 --> 0:09:52.560 the Bloomberg Sports Update. Good morning, John Stash, Good morning, Nathan. 0:09:52.559 --> 0:09:54.719 Didn't seem as if this was possible, but things have 0:09:54.880 --> 0:09:57.439 gone from bad the worst for the Jets. Young quarterback 0:09:57.559 --> 0:10:00.240 Zach Wilson lost his job to Mike White, got it 0:10:00.280 --> 0:10:03.200 back when White got hurt, lost his job again last night, 0:10:03.240 --> 0:10:06.400 got bench late third quarter, and the fans who brave 0:10:06.520 --> 0:10:09.640 the weather when wild when Wilson was removed in favor 0:10:09.679 --> 0:10:12.599 of Chris Straveler. Wilson was the second pick of the 0:10:12.679 --> 0:10:16.000 draft s. Traveler is the former Winnipeg Blue Bomber who 0:10:16.040 --> 0:10:18.760 wasn't drafted at all. Jacksonville one in the rain at 0:10:18.760 --> 0:10:21.320 MetLife nineteen to three, and both teams are now seven 0:10:21.360 --> 0:10:23.040 and eight, But the Jaguars are read on. If they 0:10:23.080 --> 0:10:25.280 win their last two games, they're going to the playoffs. 0:10:25.320 --> 0:10:27.520 The Jets fading fast. They've lost four in a row. 0:10:27.880 --> 0:10:30.680 Their season, which was going so well earlier, will almost 0:10:30.679 --> 0:10:32.640 certainly ended a couple of weeks, and then the Jets 0:10:32.640 --> 0:10:35.720 will have to side what to do with Wilson. Giants 0:10:35.720 --> 0:10:38.800 play tomorrow in Minnesota. Philadelphia brings its thirteen and one 0:10:38.840 --> 0:10:41.880 record into Dallas. Gardner Minshew will quarterback the Eagles for 0:10:41.920 --> 0:10:44.280 the injured Jalen Hurts. Lamar Jackson's gonna miss a third 0:10:44.320 --> 0:10:47.480 straight game for Baltimore. At the Garden, Rangers and Islander 0:10:48.880 --> 0:10:52.480 goes back at the York point for tro Check at 0:10:52.520 --> 0:10:55.679 the circle, back up top for Fox. Straight away, Fox 0:10:55.760 --> 0:10:58.200 drive to the far circle. Fox still with it, passes 0:10:58.240 --> 0:11:06.440 the Spanah Jack quickly Panero frelay in New York. They call. 0:11:06.480 --> 0:11:08.480 They were also tied at two and then three, and 0:11:08.480 --> 0:11:11.160 that's when Kapocaco scored within a three minutes left. Rangers 0:11:11.200 --> 0:11:14.000 won five to three. They held the Islanders only eighteen shots, 0:11:14.280 --> 0:11:16.400 and the Rangers were won eight of their last nine, 0:11:16.440 --> 0:11:18.480 while the Isles have lost five of the six, nix 0:11:18.600 --> 0:11:21.520 of one, eight of nine. Host Chicago tonight, Nets go 0:11:21.640 --> 0:11:23.520 for an eighth win in a row home game with 0:11:23.559 --> 0:11:27.640 first place Milwaukee. John Stashieller Bloomberg Sports name. All right, John, 0:11:27.679 --> 0:11:30.000 thank you. The Bloomberg Sports Report was brought to you 0:11:30.080 --> 0:11:32.440 by Audie. Don't let someone else drive off in the 0:11:32.480 --> 0:11:36.000 autie model you've always wanted. Visit your local tri state 0:11:36.040 --> 0:11:38.200 autie dealer to get behind the wheel of yours today, 0:11:38.559 --> 0:11:42.440 or visit outie Offers dot com for more information. Not 0:11:42.480 --> 0:11:45.559 a whole lot of movement in the stock market this morning. 0:11:45.679 --> 0:11:49.000 SMP futures are up one point down futures up fifty eight, 0:11:49.080 --> 0:11:52.400 NASTACK futures are down ten points. A little bit of 0:11:52.440 --> 0:11:55.319 activity in the bond space, though, with the tenure Treasury 0:11:55.360 --> 0:11:58.480 down six thirty seconds, the yield three point seven zero percent. 0:12:02.679 --> 0:12:06.120 Live from coast to coast, from New York to San Francisco, 0:12:06.320 --> 0:12:10.160 Boston to Washington, d C. Nationwide on Sirius, XAMP, the 0:12:10.240 --> 0:12:14.840 Bloomberg Business app, and Bloomberg dot com. This is Bloomberg Daybreak. 0:12:16.400 --> 0:12:19.880 Good morning. I'm Nathan Hagar. Futures are holding steady this 0:12:19.920 --> 0:12:24.240 morning as we await inflation data later today. There is 0:12:24.320 --> 0:12:27.040 concern in this market. It could be yet another reason 0:12:27.200 --> 0:12:30.760 for the Federal Reserve to harden its resolve to continue 0:12:30.840 --> 0:12:34.240 pursuing aggressive policy. That's sort of the sentiment that we 0:12:34.320 --> 0:12:39.240 got from the latest economic data just yesterday, with the 0:12:39.360 --> 0:12:42.160 making the case that the FED could keep hiking interest 0:12:42.240 --> 0:12:45.240 rates without breaking the back of the economy. That put 0:12:45.280 --> 0:12:48.760 text stocks on course for their worst December since the 0:12:48.800 --> 0:12:52.360 bursting of the dot com bubble two decades ago. Investors 0:12:52.360 --> 0:12:55.760 will be focused today on the core PCE deflator. That 0:12:55.880 --> 0:12:58.840 is a key inflation measure tracked by the FED, and 0:12:58.880 --> 0:13:03.160 of course fighting inflation is the focus for this central 0:13:03.200 --> 0:13:05.960 bank and central banks around the world. Really as we 0:13:06.040 --> 0:13:09.800 head into three of just about every central bank that 0:13:09.840 --> 0:13:12.760 we track has been making the case that they will 0:13:12.840 --> 0:13:16.480 continue raising interest rates and keeping them higher for longer 0:13:17.080 --> 0:13:20.839 to get inflation under control. Let tsake a look at 0:13:20.880 --> 0:13:24.720 some other stories we're following this morning. The State Department, 0:13:24.760 --> 0:13:28.000 says US Treasury Secretary of State, I should say Anthony 0:13:28.040 --> 0:13:32.120 Blincoln discussed COVID transparency in a recent call with China's 0:13:32.160 --> 0:13:35.360 foreign minister. He stressed the importance of Beijing being forthright 0:13:35.400 --> 0:13:40.319 about a growing COVID nineteen outbreak in the country, invest 0:13:40.440 --> 0:13:43.240 in the foundations of our strength at home, align with 0:13:43.280 --> 0:13:46.600 our partners and allies, compete with China, so that we 0:13:46.640 --> 0:13:50.000 can defend our interests and realize our vision for the future. 0:13:51.440 --> 0:13:54.600 Secretary of State Anthony B. Lincoln also discussed the war 0:13:54.679 --> 0:13:59.400 in Ukraine in a call with China yesterday. And now 0:13:59.480 --> 0:14:01.960 let's head oh Ver to Jeff, you senior E. M. 0:14:01.960 --> 0:14:05.439 E a strategist at b N Y Melon to take 0:14:05.480 --> 0:14:07.920 a look at this market this morning and I get 0:14:07.960 --> 0:14:11.400 a look at the path ahead in three Jeff, good morning. 0:14:11.760 --> 0:14:16.400 It seems like every data point that comes across the tape, Uh, 0:14:16.640 --> 0:14:19.600 just adds to the volatility. Is that kind of what 0:14:19.640 --> 0:14:22.480 you're looking for as we limp our way to the 0:14:22.520 --> 0:14:26.080 rest of this year, So we have to bear in 0:14:26.120 --> 0:14:28.360 mind other year end conditions as well. You know these 0:14:28.440 --> 0:14:31.800 sometimes however, you know, just often no quite volatile. But 0:14:31.840 --> 0:14:35.640 at the same time, Uh, there's been quite a that's 0:14:35.680 --> 0:14:37.640 being quite a lot going on, you know, heading into 0:14:37.760 --> 0:14:40.800 a year, and as well in the policy surprises, and 0:14:40.880 --> 0:14:42.880 I think the market just needs to reassess, you know, 0:14:43.000 --> 0:14:47.240 how easy or how loose that local central banks are 0:14:47.280 --> 0:14:49.560 going to be. And I think the question is, while 0:14:49.600 --> 0:14:51.920 the answer is unquestionably um, it's not going to be 0:14:52.000 --> 0:14:55.600 asked to do his market hope, Well, what is your 0:14:55.640 --> 0:14:59.040 assessment of how things go. It seems like the latest 0:14:59.120 --> 0:15:03.160 economic data that we're getting here does seem to bolster 0:15:03.320 --> 0:15:07.200 the case that the Federal Reserve can continue tightening, although 0:15:07.360 --> 0:15:10.440 some of the data have been mixed. What's your take 0:15:10.560 --> 0:15:14.080 on where the data could go from here? Well, the 0:15:14.200 --> 0:15:16.160 question is that where does the growth data go from here? 0:15:16.160 --> 0:15:18.200 Where does the housing data go from here? Versus where 0:15:18.200 --> 0:15:20.040 does the inflation data go from here? And these two 0:15:20.080 --> 0:15:22.320 could be very different things, right, So, I think that's 0:15:22.360 --> 0:15:25.640 what the markets are concerned about. Yes, something activity numbers 0:15:25.680 --> 0:15:28.440 are slowing, and the housing markets and clearly uh you 0:15:28.480 --> 0:15:31.440 know slashing you know, the amer or if not a 0:15:31.560 --> 0:15:34.160 bit more. At the same time, if we are look 0:15:34.200 --> 0:15:36.240 forward to call PPE today, you know, these are good 0:15:36.280 --> 0:15:39.240 indicators for inflation underlying demand if they come in in 0:15:39.360 --> 0:15:42.160 line with expectations, are slightly hard than expectations, you know, 0:15:42.280 --> 0:15:44.320 then I said, we'll just say we still have an 0:15:44.320 --> 0:15:46.960 inflation mandate and heading into next year, prices are using 0:15:47.040 --> 0:15:48.880 but not using at the paste that they'd like. So 0:15:49.560 --> 0:15:52.040 we reaffirm our view that I'm not going to hike 0:15:52.080 --> 0:15:54.880 aggressively further beyond five them, but they probably may need 0:15:54.960 --> 0:15:57.200 to stay at five for longer than expected. Do you 0:15:57.280 --> 0:16:00.280 expect that the PC the flator that we get today 0:16:00.440 --> 0:16:02.720 is going to bolster that case further. I mean, we 0:16:02.840 --> 0:16:06.240 have seen signs in this economy that it looks like 0:16:06.440 --> 0:16:08.960 the FED is winning the battle. I mean it's not 0:16:09.080 --> 0:16:10.880 where it needs to be, where it wants to be, 0:16:11.600 --> 0:16:15.640 but the trend is moving steadily downward. When it comes 0:16:15.640 --> 0:16:18.920 to inflation, well, I think you am just going to 0:16:19.000 --> 0:16:20.400 hit the nail on the head there, you know, winning 0:16:20.400 --> 0:16:22.360 the battle, and that you need to, you know, win 0:16:22.440 --> 0:16:24.720 the war against inflation, right, and that is a global 0:16:24.800 --> 0:16:27.520 circumstances and there could be the furthest things in the 0:16:27.600 --> 0:16:29.600 tail you know when when it comes inflation as well learned. 0:16:29.640 --> 0:16:31.960 But the other guests in the point of volatility is 0:16:32.040 --> 0:16:34.760 a look at what's happened to ECB pricing yesterday. We're 0:16:34.840 --> 0:16:37.040 up at three and a half percent already tightening in 0:16:37.160 --> 0:16:38.880 Europe and if you look at what the bo J 0:16:39.000 --> 0:16:42.200 didn't a surprisingly speaking that this is still in one 0:16:42.240 --> 0:16:45.280 world to artist economies, you tightening as well. So even 0:16:45.360 --> 0:16:48.240 if the FED stands still um then markets need to 0:16:48.280 --> 0:16:51.000 take into acount global conditions. And the fact is Europe 0:16:51.040 --> 0:16:54.880 and Japan are tightening more than expected right Only China 0:16:54.960 --> 0:16:56.480 is probably on the other side, you know, right now, 0:16:56.600 --> 0:16:59.280 but due to growth concerns that to worry too. So 0:16:59.520 --> 0:17:02.040 you've got China growth on the one hand and global 0:17:02.120 --> 0:17:04.480 tightening on the other. Then there's a small wonder that 0:17:05.520 --> 0:17:08.480 risk appetitis a bit soggy right now in our last 0:17:08.520 --> 0:17:11.200 thirty seconds here where do you look for opportunity against 0:17:11.240 --> 0:17:14.720 tighter central banks? So it's still a real rate in 0:17:14.800 --> 0:17:16.959 emerging markets, you know, we look at the flows them 0:17:16.960 --> 0:17:20.159 into like Brazil, Mexico and Indonesia. Indonesia and the had 0:17:20.240 --> 0:17:22.600 a central bank decision in a yesterday probably the only 0:17:22.680 --> 0:17:25.280 place in Asia right now which is already above the 0:17:25.320 --> 0:17:27.720 head of the FED. And we'll stay comfortably above the Fed. 0:17:27.840 --> 0:17:30.680 We're seeing a lot of external and players having their 0:17:30.720 --> 0:17:32.760 exposures to the bond market, things like that. I think 0:17:32.760 --> 0:17:35.479 they will continue have positive real rates. I think that's 0:17:35.520 --> 0:17:38.520 the bottom line. Thanks so much, jeff Happy holidays. We 0:17:38.560 --> 0:17:42.720 don't speak again, Jeffrey. You senior strategists at b n 0:17:42.880 --> 0:17:46.119 Y melon with us this morning. Right now, SMP futures 0:17:46.119 --> 0:17:48.280 are of four point staff futures of seventy three and 0:17:48.320 --> 0:17:53.040 nastaic futures trimming their declines now down still but only 0:17:53.119 --> 0:18:02.520 by two points. Stay with us. You're listening to Bloomberg, Gaming, markets, 0:18:02.640 --> 0:18:05.679 headlines and breaking news twenty four hours a day at 0:18:05.720 --> 0:18:09.119 Bloomberg dot com. The Bloomberg Business at Hand at Bloomberg 0:18:09.200 --> 0:18:18.280 Quick Take. This is a Bloomberg Business flash and I'm 0:18:18.359 --> 0:18:21.399 Karen Moscow. US stock index futures aren't steady ahead of 0:18:21.440 --> 0:18:24.040 inflation data. Do out later this morning. We checked the 0:18:24.080 --> 0:18:26.720 markets all day long here on Bloomberg, but SNP future 0:18:26.760 --> 0:18:29.000 is up six points, or about two tens of uppercent. 0:18:29.359 --> 0:18:32.160 Down futures have eighty nine points or three tens of uppercent, 0:18:32.240 --> 0:18:35.160 and NASTACK future is little change. The decks in Germany's 0:18:35.200 --> 0:18:38.240 have half percent. Ten year treasury down six thirty seconds, 0:18:38.280 --> 0:18:40.400 you have three point seven zero percent, and they yield 0:18:40.440 --> 0:18:43.120 in the two year four point to seven percent. Nine 0:18:43.280 --> 0:18:45.280 x Screwed oil is up two point four percent of 0:18:45.320 --> 0:18:48.160 a dollar eighty three at seventy nine thirty one cents 0:18:48.200 --> 0:18:50.679 of barrel comics gold up six tens percent or ten 0:18:50.720 --> 0:18:53.120 dollars ninety cents at eighteen o six twenty an ounce. 0:18:53.480 --> 0:18:55.920 The Euro one point six one three against the dollar, 0:18:55.960 --> 0:18:58.399 British pound one point two zero five six and the 0:18:58.560 --> 0:19:01.000 end is at one thirty two points six and bitcoin 0:19:01.119 --> 0:19:04.280 is up for tensive upper cent at about sixteen thousand, 0:19:04.400 --> 0:19:06.679 nine hundred dollars, and investors are going to be focused 0:19:06.720 --> 0:19:09.680 on the core PCE deflator, which is a key inflation 0:19:09.720 --> 0:19:12.000 measure track by the Fed. It's how to eat thirty 0:19:12.040 --> 0:19:14.720 Wall Street time, and that's a Bloomberg business flash. Now 0:19:14.800 --> 0:19:17.040 here's Michael bar with more on what's going on around 0:19:17.080 --> 0:19:19.560 the world. Michael, good morning, Good morning, Karen. A winter 0:19:19.680 --> 0:19:23.360 storm has cost thousands of flight cancelations and homeless shelters 0:19:23.400 --> 0:19:26.720 are overflowing amid one of the most treacherous holiday travel 0:19:26.840 --> 0:19:30.120 seasons the nation has seen in decades. The House committee 0:19:30.119 --> 0:19:33.600 investigating the January sixth attack on the US Capitol delivered 0:19:33.600 --> 0:19:37.280 a scathing report and it's released yesterday. It blamed one man, 0:19:37.520 --> 0:19:41.080 former President Donald Trump, for inciting violence to try and 0:19:41.160 --> 0:19:44.240 hold onto power. The Senate passed the one point seven 0:19:44.320 --> 0:19:46.960 trillion dollars spending bill in an effort to stop a 0:19:47.040 --> 0:19:50.359 government shutdown. In the NFL, the Jets lost to the 0:19:50.480 --> 0:19:54.359 Jaguars nineteen three. In the NHL, the Islanders beat the 0:19:54.440 --> 0:19:57.200 Rangers five three. The Bruins one in the NBA. The 0:19:57.200 --> 0:20:00.240 Wizards lost. Global News twenty four hours a day on 0:20:00.480 --> 0:20:03.880 air and on Bloomberg Quick Take, powered by more than 0:20:04.000 --> 0:20:07.800 twenty seven hundred journalist and analysts and more than twenty countries. 0:20:07.840 --> 0:20:10.960 I'm Michael bar and this is Bloomberg. Nathan all right, Michael, thanks, 0:20:11.000 --> 0:20:13.680 It's three on Wall Street. I'm Nathan Hagar. This is 0:20:13.760 --> 0:20:16.239 Bloomberg Daybreak. Let's get more on that spending bill one 0:20:16.280 --> 0:20:18.760 point seven trillion dollars actually passed the Senate, where a 0:20:18.800 --> 0:20:23.719 bipartisan vote after an impass on immigration policy was broken. 0:20:24.240 --> 0:20:27.840 Today the House gets its vote, probably gonna happen pretty quick, 0:20:27.880 --> 0:20:31.000 so lawmakers had beat it out of the town get 0:20:31.040 --> 0:20:34.200 ahead of a winter storm. Bloomberg's Joe Matthews spoke with 0:20:34.240 --> 0:20:37.640 Congressman Henry Quay Are Democratic Texas about whether he thinks 0:20:37.720 --> 0:20:40.680 the measure passes. Absolutely, we are going to go ahead 0:20:40.720 --> 0:20:44.200 and pass said, and look, every bill is is put 0:20:44.280 --> 0:20:48.359 together and there are different opinions. It's not the way 0:20:49.000 --> 0:20:51.480 I wanted or somebody else might want it, but it's 0:20:51.560 --> 0:20:54.760 it's combined together and we are going to pass it. 0:20:55.040 --> 0:20:58.159 And there is money for homeland. You know. I'm very 0:20:58.200 --> 0:21:01.320 interested on that. I said in three committed homeland defense 0:21:01.400 --> 0:21:04.320 and of course egg but talking about the border, there 0:21:04.440 --> 0:21:08.679 is money for border security here. This wouldn't have come 0:21:08.720 --> 0:21:14.080 about unless Mike Lee's amendment was was struck down or 0:21:14.280 --> 0:21:16.280 or allowed on the floor. It was struck down, and 0:21:16.520 --> 0:21:18.760 there I could get into a lot of sort of 0:21:18.840 --> 0:21:21.680 politics here about what that might have meant for the House. 0:21:22.280 --> 0:21:24.680 But knowing that that is not there, and knowing that 0:21:24.800 --> 0:21:28.320 Title forty two is bound up in court, what is 0:21:28.359 --> 0:21:31.359 your thought right now on the status of security on 0:21:31.480 --> 0:21:37.200 the border in your district? Well, surely, uh, Title forty 0:21:37.240 --> 0:21:40.480 two looks like it's gonna go away. It's a health order, 0:21:40.600 --> 0:21:44.080 it's not an immigration order. I want that to happen. 0:21:44.840 --> 0:21:49.159 But I wanted to extend to the administration comes up 0:21:49.200 --> 0:21:52.119 with a new policy, a policy that will allow this 0:21:52.600 --> 0:21:56.760 migrant seekers to go in in an early pathway through 0:21:56.800 --> 0:21:59.920 the ports of entry or online and asked for aside 0:22:00.040 --> 0:22:02.600