Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is Bloomberg
Speaker 1: Day Right for Friday, December twenty two. Coming up, the
Speaker 1: tower markets look for gains ahead of the holidays and
Speaker 1: make concerns over fed tightening. A January six committee releases
Speaker 1: a scathing report with blame focusing on former President Trump,
Speaker 1: Sam Bankman freed released on a massive bail payment and
Speaker 1: starring COVID cases threatened China's economy. People taking planes, trains,
Speaker 1: and automobiles are hoping a window storm does not play
Speaker 1: Gridge with holiday travel plans, plus a fire on a
Speaker 1: New York ferry. I'm Michael bar More Ahead, I'm John
Speaker 1: stash Shower, That jets Lutheran Street continued to struggling offense
Speaker 1: and a home lost to Jacksonville. The Rangers beat the Islander.
Speaker 1: That's all Train ahead on Bloomberg Daybreak on Bloomberg eleven
Speaker 1: three on New York, Bloomberg one, Washington, d C, Bloomberg
Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco
Speaker 1: Syrius x M one nineteen and around the world Old
Speaker 1: on Bloomberg Radio dot Com and via the Bloombird Business Up.
Speaker 1: Good morning, I'm Nathan Hagar and I'm Karen Moscow, and
Speaker 1: US stock index futures are little change this morning. We
Speaker 1: checked the markets all day long here on Bloomberg Radio
Speaker 1: with SNP futures that will change down. Future is higher
Speaker 1: up to tens of upper center sixty points and nowsday
Speaker 1: futures down about a tenth of upper center nine points.
Speaker 1: Tenure Treasury down five thirties seconds. He had three point
Speaker 1: six nine percent and a yield on the two year
Speaker 1: at four point to seven per cent. Nathan Karen, So
Speaker 1: we're kind of treading water this morning. After stock snapped
Speaker 1: a three day wind streak yesterday. The latest strong economic
Speaker 1: data are validating the case of the Federal Reserve can
Speaker 1: keep tightening monetary policy. That's set a down beat tone
Speaker 1: for the week. Tech stocks in particular, on course for
Speaker 1: their worst December since the dot com bubble burst. Namura's
Speaker 1: head of cross At Strategies, Matthew Rose, says, it's a
Speaker 1: sign of a broader market trend, getting of that addiction
Speaker 1: to zero interest rate, free ride on risk, and that's
Speaker 1: why I think is going to be the year of credit,
Speaker 1: because most investors haven't had to contemplate rising implied in
Speaker 1: actual default rates, you know, eroding credit markets, widening credit spreads.
Speaker 1: So it's gonna be an interesting education and path for investors.
Speaker 1: Matthew Row with Namura says growth stocks will be the
Speaker 1: biggest pain trade in Well Nathan Investors get more data
Speaker 1: to digest today, just ahead of the holiday weekend, and
Speaker 1: Bloomberg has any down to Judas has a preview. In October,
Speaker 1: consumer spending adjusted for inflation posted the largest increase since
Speaker 1: the start of the year. Today's rape board could tell
Speaker 1: a different stories. Inflation chips away at household finances. Preliminary
Speaker 1: data show November retail sales dropped by the most in
Speaker 1: nearly a year. Also on today's data agenda, new home sales,
Speaker 1: Nat Del Judace Bloomberg Day breaks right, Vinnie, thank you.
Speaker 1: I'm really get one more notable data point at ten am,
Speaker 1: Wall Street time with the University of Michigan Consumer Sentiment Index.
Speaker 1: That report has proved to be a market mover in
Speaker 1: recent months. Let's turn to markets in Asia, now, Karen,
Speaker 1: we saw weakness across several markets. They're ahead of the weekend.
Speaker 1: Bloomberg's Brian Curtis has more on that story. Asian equities
Speaker 1: tracked lower after a slump in US technology stocks. Strong
Speaker 1: US economic data strengthened the case for the Fed to
Speaker 1: continue raising interest rates as tech index led the falls,
Speaker 1: but weakness was also seen in Japan, Australia and South Korea. Elsewhere,
Speaker 1: oil headed for a big weekly gain. Has China shift
Speaker 1: away from COVID zero bolster the outlook for demand? Brian Curtis,
Speaker 1: Bloomberg Daybreak Right, Brian, thank you. Meanwhile, in China, a
Speaker 1: complete reversal in COVID policy is not having the effect
Speaker 1: officials initially intended. COVID infections are soaring and keeping people
Speaker 1: at home, causing US slump and travel and economic activity.
Speaker 1: People in Beijing and other major Chinese cities have been
Speaker 1: hit by an exit wave of infections that they're being
Speaker 1: encouraged to return to work even if they're sick. Now,
Speaker 1: let's turn to a major note in politics in this country. Karen.
Speaker 1: The House committee investigating the January sixth attack on the
Speaker 1: US capital has released its final report on the insurrection,
Speaker 1: and it cast the blame on former President Donald Trump,
Speaker 1: specifically for inciting violence to try to hold onto power.
Speaker 1: The eight hundred fourteen page report details Trump's efforts to
Speaker 1: pressure state officials and the Justice Department overturned the election.
Speaker 1: The committee also recommends that Congress establish a mechanism that
Speaker 1: would formally bar Trump and others identified in the report
Speaker 1: from holding any government or military office under the fourteenth Amendment.
Speaker 1: Well turning to Tesla, now, Nathan, after offloading a massive
Speaker 1: sum of Tesla's shares this here, CEO Elon Musk says
Speaker 1: he will not be selling shares for a while. Bloomberg
Speaker 1: Steve Rappaport joins US Live. But that story Steve, good morning,
Speaker 1: Good morning, Karen. And Nathan. Musk sold almost forty million
Speaker 1: dollars of Testla shares, mostly to fund his purchase of Twitter.
Speaker 1: Now he's ready to take a break. I'm not selling
Speaker 1: any stock for I don't know, but quote a minimum
Speaker 1: eight seens or twenty four months, so you can count
Speaker 1: on me. Like most no stock sales will probably out
Speaker 1: of twenty five or something. Musk's declaration was in response
Speaker 1: to a question from longtime investor Ross Gerber, who challenged
Speaker 1: the CEO's leadership of the electric vehicle maker. Shareholders seemed
Speaker 1: pleased with the announcement, with test Less stock rising as
Speaker 1: much as three and a half percent in pre market trading.
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks,
Speaker 1: Let's turn to Crypto now. In the latest on f
Speaker 1: t X and Sam Bankman Freed, the Crypto Exchanges former
Speaker 1: CEO was released on a massive bail package after he
Speaker 1: made his first U S court appearance yesterday. That deal
Speaker 1: includes a twodred fifty million dollar personal or cognizance bond
Speaker 1: that was secured by his parents home in California. One
Speaker 1: federal prosecutor called it one of the largest pre trial
Speaker 1: bonds in US history. Sam Bankman Freed is facing fraud
Speaker 1: charges over the collapse of f t X. His next
Speaker 1: court appearance is scheduled for January three, well as the
Speaker 1: ft X saga plays out. Nathan SEC chair Gary Bnsler
Speaker 1: is saying the agency's patients is wearing thin for digital
Speaker 1: asset exchanges and other firms that shir gets regulations. Don
Speaker 1: Krisner joins US with that story. In an interview yesterday,
Speaker 1: SEC chair Gary Gensler said the agency's patients is wearing
Speaker 1: thin for digital asset exchanges and other firms that shirt
Speaker 1: gets regulations. Gensler said the runway is getting shorter to
Speaker 1: start following rules and register with the agency. He also
Speaker 1: said the casinos in this wild West are non compliant intermediaries.
Speaker 1: Gensler also declined to identify firms facing scrutiny or common
Speaker 1: on where the probe of ft X may go next.
Speaker 1: In New York, I'm Doug Prisoner Bloomberg daybreak. All right, Doug,
Speaker 1: thank you. Finally oil has headed for a substantial weekly
Speaker 1: gain as Russia says it may cut crude production in
Speaker 1: response to the price cap imposed by the G seven
Speaker 1: on its exports. Right now, nimex s crudes up two
Speaker 1: point one percent at seventy nine dollars fourteen cents of barrel.
Speaker 1: Straight ahead, your latest local headlines span the check of Sports.
Speaker 1: This is Bloomberg. It's fifty five degrees right now in
Speaker 1: Central Park, raining, but rain is gonna end early, and
Speaker 1: then temperatures are gonna sink like a stone this afternoon,
Speaker 1: down to the low teens. Tonight, let's gonna look at
Speaker 1: some of the other stories making news in New York
Speaker 1: and around the world with Bloomberg's Michael Barre. You're ready
Speaker 1: for this deep freeze. Michael h No, but yeah, but
Speaker 1: neither are two million Americans. But it's going to affect
Speaker 1: many people because of this massive winners storm rolling across
Speaker 1: the country. Here in the Try State area, temperatures the
Speaker 1: forecast to plummet around thirty degrees in just hours, freezing
Speaker 1: any rain already on the roads. Strong winds, snow, and
Speaker 1: flooding are also part of the storm. This woman lives
Speaker 1: in lynden Hurst, New York, where she says there was
Speaker 1: flooding from heavy rain just last week. I do get
Speaker 1: nervous as far as losing power and just trying to
Speaker 1: manage what we're gonna do, as far as eating and
Speaker 1: just making sure we have the heat on. Hundreds of
Speaker 1: flights have already been canceled or delayed in the Tri
Speaker 1: State area. Meanwhile, President Biden more Americans to take the
Speaker 1: storm seriously. It goes from Oklahoma all the way to Wyoming,
Speaker 1: and Wyoming the main and it's a real consequence. So
Speaker 1: I encourage everyone everyone please heat the local warning, the
Speaker 1: President says, it's not like a snow day when you
Speaker 1: were a kid. This is serious stuff. Hundreds of New
Speaker 1: York City commuters had to be evacuated from a Staten
Speaker 1: Island Ferry after a fire broke out on board last evening.
Speaker 1: Officials say there were no major injuries, but at least
Speaker 1: five people are being treated for smoke inhalation. Officials say
Speaker 1: workers quickly detected the fire, activated a high texaspression system,
Speaker 1: and sealed the flames behind air tight doors. F D
Speaker 1: n Y Deputy Chief Frank Lee praised the crew members
Speaker 1: for their response. This is the way the system is
Speaker 1: supposed to happen. When is it June fire? Just supposed
Speaker 1: to notify the coast guard and then you're supposed to
Speaker 1: make sure that you seal it and get the people
Speaker 1: out of the way. So everybody acted the way that
Speaker 1: the way I would expect him to. The f D
Speaker 1: mmise Frank leaps as passengers filed downstairs and evacuated onto
Speaker 1: other ferries which had race to help. A Connecticut judge
Speaker 1: denied Info Wars host Alex Jones's motion seeking a new
Speaker 1: trial and the overturning of a jury verdict requiring him
Speaker 1: to pay hundreds of millions of dollars to families of
Speaker 1: victims of the Sandy Hook Elementary School shooting for years.
Speaker 1: Jones described the twenty twelve shootings in Newtown as a hoax.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalists and analysts more than a hundred twenty countries. Michael
Speaker 1: Barr and this is Bloomberg. Nathan. All right, Michael, thank you.
Speaker 1: Coming up to five ten on Wall Street time for
Speaker 1: the Bloomberg Sports Update. Good morning, John Stash, Good morning, Nathan.
Speaker 1: Didn't seem as if this was possible, but things have
Speaker 1: gone from bad the worst for the Jets. Young quarterback
Speaker 1: Zach Wilson lost his job to Mike White, got it
Speaker 1: back when White got hurt, lost his job again last night,
Speaker 1: got bench late third quarter, and the fans who brave
Speaker 1: the weather when wild when Wilson was removed in favor
Speaker 1: of Chris Straveler. Wilson was the second pick of the
Speaker 1: draft s. Traveler is the former Winnipeg Blue Bomber who
Speaker 1: wasn't drafted at all. Jacksonville one in the rain at
Speaker 1: MetLife nineteen to three, and both teams are now seven
Speaker 1: and eight, But the Jaguars are read on. If they
Speaker 1: win their last two games, they're going to the playoffs.
Speaker 1: The Jets fading fast. They've lost four in a row.
Speaker 1: Their season, which was going so well earlier, will almost
Speaker 1: certainly ended a couple of weeks, and then the Jets
Speaker 1: will have to side what to do with Wilson. Giants
Speaker 1: play tomorrow in Minnesota. Philadelphia brings its thirteen and one
Speaker 1: record into Dallas. Gardner Minshew will quarterback the Eagles for
Speaker 1: the injured Jalen Hurts. Lamar Jackson's gonna miss a third
Speaker 1: straight game for Baltimore. At the Garden, Rangers and Islander
Speaker 1: goes back at the York point for tro Check at
Speaker 1: the circle, back up top for Fox. Straight away, Fox
Speaker 1: drive to the far circle. Fox still with it, passes
Speaker 1: the Spanah Jack quickly Panero frelay in New York. They call.
Speaker 1: They were also tied at two and then three, and
Speaker 1: that's when Kapocaco scored within a three minutes left. Rangers
Speaker 1: won five to three. They held the Islanders only eighteen shots,
Speaker 1: and the Rangers were won eight of their last nine,
Speaker 1: while the Isles have lost five of the six, nix
Speaker 1: of one, eight of nine. Host Chicago tonight, Nets go
Speaker 1: for an eighth win in a row home game with
Speaker 1: first place Milwaukee. John Stashieller Bloomberg Sports name. All right, John,
Speaker 1: thank you. The Bloomberg Sports Report was brought to you
Speaker 1: by Audie. Don't let someone else drive off in the
Speaker 1: autie model you've always wanted. Visit your local tri state
Speaker 1: autie dealer to get behind the wheel of yours today,
Speaker 1: or visit outie Offers dot com for more information. Not
Speaker 1: a whole lot of movement in the stock market this morning.
Speaker 1: SMP futures are up one point down futures up fifty eight,
Speaker 1: NASTACK futures are down ten points. A little bit of
Speaker 1: activity in the bond space, though, with the tenure Treasury
Speaker 1: down six thirty seconds, the yield three point seven zero percent.
Speaker 1: Live from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, d C. Nationwide on Sirius, XAMP, the
Speaker 1: Bloomberg Business app, and Bloomberg dot com. This is Bloomberg Daybreak.
Speaker 1: Good morning. I'm Nathan Hagar. Futures are holding steady this
Speaker 1: morning as we await inflation data later today. There is
Speaker 1: concern in this market. It could be yet another reason
Speaker 1: for the Federal Reserve to harden its resolve to continue
Speaker 1: pursuing aggressive policy. That's sort of the sentiment that we
Speaker 1: got from the latest economic data just yesterday, with the
Speaker 1: making the case that the FED could keep hiking interest
Speaker 1: rates without breaking the back of the economy. That put
Speaker 1: text stocks on course for their worst December since the
Speaker 1: bursting of the dot com bubble two decades ago. Investors
Speaker 1: will be focused today on the core PCE deflator. That
Speaker 1: is a key inflation measure tracked by the FED, and
Speaker 1: of course fighting inflation is the focus for this central
Speaker 1: bank and central banks around the world. Really as we
Speaker 1: head into three of just about every central bank that
Speaker 1: we track has been making the case that they will
Speaker 1: continue raising interest rates and keeping them higher for longer
Speaker 1: to get inflation under control. Let tsake a look at
Speaker 1: some other stories we're following this morning. The State Department,
Speaker 1: says US Treasury Secretary of State, I should say Anthony
Speaker 1: Blincoln discussed COVID transparency in a recent call with China's
Speaker 1: foreign minister. He stressed the importance of Beijing being forthright
Speaker 1: about a growing COVID nineteen outbreak in the country, invest
Speaker 1: in the foundations of our strength at home, align with
Speaker 1: our partners and allies, compete with China, so that we
Speaker 1: can defend our interests and realize our vision for the future.
Speaker 1: Secretary of State Anthony B. Lincoln also discussed the war
Speaker 1: in Ukraine in a call with China yesterday. And now
Speaker 1: let's head oh Ver to Jeff, you senior E. M.
Speaker 1: E a strategist at b N Y Melon to take
Speaker 1: a look at this market this morning and I get
Speaker 1: a look at the path ahead in three Jeff, good morning.
Speaker 1: It seems like every data point that comes across the tape, Uh,
Speaker 1: just adds to the volatility. Is that kind of what
Speaker 1: you're looking for as we limp our way to the
Speaker 1: rest of this year, So we have to bear in
Speaker 1: mind other year end conditions as well. You know these
Speaker 1: sometimes however, you know, just often no quite volatile. But
Speaker 1: at the same time, Uh, there's been quite a that's
Speaker 1: being quite a lot going on, you know, heading into
Speaker 1: a year, and as well in the policy surprises, and
Speaker 1: I think the market just needs to reassess, you know,
Speaker 1: how easy or how loose that local central banks are
Speaker 1: going to be. And I think the question is, while
Speaker 1: the answer is unquestionably um, it's not going to be
Speaker 1: asked to do his market hope, Well, what is your
Speaker 1: assessment of how things go. It seems like the latest
Speaker 1: economic data that we're getting here does seem to bolster
Speaker 1: the case that the Federal Reserve can continue tightening, although
Speaker 1: some of the data have been mixed. What's your take
Speaker 1: on where the data could go from here? Well, the
Speaker 1: question is that where does the growth data go from here?
Speaker 1: Where does the housing data go from here? Versus where
Speaker 1: does the inflation data go from here? And these two
Speaker 1: could be very different things, right, So, I think that's
Speaker 1: what the markets are concerned about. Yes, something activity numbers
Speaker 1: are slowing, and the housing markets and clearly uh you
Speaker 1: know slashing you know, the amer or if not a
Speaker 1: bit more. At the same time, if we are look
Speaker 1: forward to call PPE today, you know, these are good
Speaker 1: indicators for inflation underlying demand if they come in in
Speaker 1: line with expectations, are slightly hard than expectations, you know,
Speaker 1: then I said, we'll just say we still have an
Speaker 1: inflation mandate and heading into next year, prices are using
Speaker 1: but not using at the paste that they'd like. So
Speaker 1: we reaffirm our view that I'm not going to hike
Speaker 1: aggressively further beyond five them, but they probably may need
Speaker 1: to stay at five for longer than expected. Do you
Speaker 1: expect that the PC the flator that we get today
Speaker 1: is going to bolster that case further. I mean, we
Speaker 1: have seen signs in this economy that it looks like
Speaker 1: the FED is winning the battle. I mean it's not
Speaker 1: where it needs to be, where it wants to be,
Speaker 1: but the trend is moving steadily downward. When it comes
Speaker 1: to inflation, well, I think you am just going to
Speaker 1: hit the nail on the head there, you know, winning
Speaker 1: the battle, and that you need to, you know, win
Speaker 1: the war against inflation, right, and that is a global
Speaker 1: circumstances and there could be the furthest things in the
Speaker 1: tail you know when when it comes inflation as well learned.
Speaker 1: But the other guests in the point of volatility is
Speaker 1: a look at what's happened to ECB pricing yesterday. We're
Speaker 1: up at three and a half percent already tightening in
Speaker 1: Europe and if you look at what the bo J
Speaker 1: didn't a surprisingly speaking that this is still in one
Speaker 1: world to artist economies, you tightening as well. So even
Speaker 1: if the FED stands still um then markets need to
Speaker 1: take into acount global conditions. And the fact is Europe
Speaker 1: and Japan are tightening more than expected right Only China
Speaker 1: is probably on the other side, you know, right now,
Speaker 1: but due to growth concerns that to worry too. So
Speaker 1: you've got China growth on the one hand and global
Speaker 1: tightening on the other. Then there's a small wonder that
Speaker 1: risk appetitis a bit soggy right now in our last
Speaker 1: thirty seconds here where do you look for opportunity against
Speaker 1: tighter central banks? So it's still a real rate in
Speaker 1: emerging markets, you know, we look at the flows them
Speaker 1: into like Brazil, Mexico and Indonesia. Indonesia and the had
Speaker 1: a central bank decision in a yesterday probably the only
Speaker 1: place in Asia right now which is already above the
Speaker 1: head of the FED. And we'll stay comfortably above the Fed.
Speaker 1: We're seeing a lot of external and players having their
Speaker 1: exposures to the bond market, things like that. I think
Speaker 1: they will continue have positive real rates. I think that's
Speaker 1: the bottom line. Thanks so much, jeff Happy holidays. We
Speaker 1: don't speak again, Jeffrey. You senior strategists at b n
Speaker 1: Y melon with us this morning. Right now, SMP futures
Speaker 1: are of four point staff futures of seventy three and
Speaker 1: nastaic futures trimming their declines now down still but only
Speaker 1: by two points. Stay with us. You're listening to Bloomberg, Gaming, markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com. The Bloomberg Business at Hand at Bloomberg
Speaker 1: Quick Take. This is a Bloomberg Business flash and I'm
Speaker 1: Karen Moscow. US stock index futures aren't steady ahead of
Speaker 1: inflation data. Do out later this morning. We checked the
Speaker 1: markets all day long here on Bloomberg, but SNP future
Speaker 1: is up six points, or about two tens of uppercent.
Speaker 1: Down futures have eighty nine points or three tens of uppercent,
Speaker 1: and NASTACK future is little change. The decks in Germany's
Speaker 1: have half percent. Ten year treasury down six thirty seconds,
Speaker 1: you have three point seven zero percent, and they yield
Speaker 1: in the two year four point to seven percent. Nine
Speaker 1: x Screwed oil is up two point four percent of
Speaker 1: a dollar eighty three at seventy nine thirty one cents
Speaker 1: of barrel comics gold up six tens percent or ten
Speaker 1: dollars ninety cents at eighteen o six twenty an ounce.
Speaker 1: The Euro one point six one three against the dollar,
Speaker 1: British pound one point two zero five six and the
Speaker 1: end is at one thirty two points six and bitcoin
Speaker 1: is up for tensive upper cent at about sixteen thousand,
Speaker 1: nine hundred dollars, and investors are going to be focused
Speaker 1: on the core PCE deflator, which is a key inflation
Speaker 1: measure track by the Fed. It's how to eat thirty
Speaker 1: Wall Street time, and that's a Bloomberg business flash. Now
Speaker 1: here's Michael bar with more on what's going on around
Speaker 1: the world. Michael, good morning, Good morning, Karen. A winter
Speaker 1: storm has cost thousands of flight cancelations and homeless shelters
Speaker 1: are overflowing amid one of the most treacherous holiday travel
Speaker 1: seasons the nation has seen in decades. The House committee
Speaker 1: investigating the January sixth attack on the US Capitol delivered
Speaker 1: a scathing report and it's released yesterday. It blamed one man,
Speaker 1: former President Donald Trump, for inciting violence to try and
Speaker 1: hold onto power. The Senate passed the one point seven
Speaker 1: trillion dollars spending bill in an effort to stop a
Speaker 1: government shutdown. In the NFL, the Jets lost to the
Speaker 1: Jaguars nineteen three. In the NHL, the Islanders beat the
Speaker 1: Rangers five three. The Bruins one in the NBA. The
Speaker 1: Wizards lost. Global News twenty four hours a day on
Speaker 1: air and on Bloomberg Quick Take, powered by more than
Speaker 1: twenty seven hundred journalist and analysts and more than twenty countries.
Speaker 1: I'm Michael bar and this is Bloomberg. Nathan all right, Michael, thanks,
Speaker 1: It's three on Wall Street. I'm Nathan Hagar. This is
Speaker 1: Bloomberg Daybreak. Let's get more on that spending bill one
Speaker 1: point seven trillion dollars actually passed the Senate, where a
Speaker 1: bipartisan vote after an impass on immigration policy was broken.
Speaker 1: Today the House gets its vote, probably gonna happen pretty quick,
Speaker 1: so lawmakers had beat it out of the town get
Speaker 1: ahead of a winter storm. Bloomberg's Joe Matthews spoke with
Speaker 1: Congressman Henry Quay Are Democratic Texas about whether he thinks
Speaker 1: the measure passes. Absolutely, we are going to go ahead
Speaker 1: and pass said, and look, every bill is is put
Speaker 1: together and there are different opinions. It's not the way
Speaker 1: I wanted or somebody else might want it, but it's
Speaker 1: it's combined together and we are going to pass it.
Speaker 1: And there is money for homeland. You know. I'm very
Speaker 1: interested on that. I said in three committed homeland defense
Speaker 1: and of course egg but talking about the border, there
Speaker 1: is money for border security here. This wouldn't have come
Speaker 1: about unless Mike Lee's amendment was was struck down or
Speaker 1: or allowed on the floor. It was struck down, and
Speaker 1: there I could get into a lot of sort of
Speaker 1: politics here about what that might have meant for the House.
Speaker 1: But knowing that that is not there, and knowing that
Speaker 1: Title forty two is bound up in court, what is
Speaker 1: your thought right now on the status of security on
Speaker 1: the border in your district? Well, surely, uh, Title forty
Speaker 1: two looks like it's gonna go away. It's a health order,
Speaker 1: it's not an immigration order. I want that to happen.
Speaker 1: But I wanted to extend to the administration comes up
Speaker 1: with a new policy, a policy that will allow this
Speaker 1: migrant seekers to go in in an early pathway through
Speaker 1: the ports of entry or online and asked for aside
Speaker 1: them and if they come in between parts of entries
Speaker 1: like they're doing right now, either they will be asked
Speaker 1: to go voluntarily return themselves or they're going to be
Speaker 1: deported with some sort of penalty where they cannot apply
Speaker 1: for the next five years or so for asylum. We
Speaker 1: gotta have consequences. The problem is there are no consequences.
Speaker 1: We can add technology, we can add personnel, but you've
Speaker 1: got to have the right policy with the mixture of
Speaker 1: personnel and technology at the White House on that, well,
Speaker 1: I've always from the very beginning, and I can tell
Speaker 1: you December tenth, Uh, December tenth is when I call
Speaker 1: the transition team, the buying transistent team, and I said, hey, look,
Speaker 1: I want to offer my services. My understanding is December.
Speaker 1: I was already telling them that people were lining up
Speaker 1: to come across. Uh. And I kept on trying to
Speaker 1: talk to them. But they have a different mindset. And unfortunately,
Speaker 1: without due respect, a lot of the people they have
Speaker 1: the White House have immigration background, which is okay, But
Speaker 1: who's listening to the men and women in green who's
Speaker 1: listening to the border community. Somebody's got to listen to
Speaker 1: my border communities. Well, this is a tough spot here,
Speaker 1: knowing that this is going to be a court decision
Speaker 1: and not likely a legislative one. Do you have any
Speaker 1: sense of timing on when the Supreme Court comes back
Speaker 1: around on Title forty two. Uh? No, we don't you know,
Speaker 1: they ask for those briefs pretty quickly, and we'll wait
Speaker 1: for what happens. But I'm hoping that the that the
Speaker 1: administration will come up with a policy that will have
Speaker 1: an orderly pathway for asylum speakers and consequence of debate,
Speaker 1: don't Let's Democrat Henry kay Are of Texas speaking with
Speaker 1: Joe Matthew on Bloomberg Sound On. Catch the program weeknights
Speaker 1: five pm Wall Street Time on Bloomberg Radio. Listen anytime
Speaker 1: you can download the show wherever you get your podcasts.
Speaker 1: You've got your top stories, local headlines, and checker markets. Next, first,
Speaker 1: brace yourself for this weekend weather forecast. A tri state
Speaker 1: area under a wind advisory through ten pm tonight, the
Speaker 1: rain will taper off. Temperatures will fall from the fifties
Speaker 1: through the forties into the thirties by late today. We're
Speaker 1: partly cloudy, brees and much colder Tonight those ten of fifteen,
Speaker 1: a mixture of clouds and sun breese. For tomorrow, he's
Speaker 1: only twenty to twenty five. Christmas Day, abundant sunshine but
Speaker 1: still cold. He's only five to thirty. I'm Rob Carolyn
Speaker 1: with your three day forecast on Bloomberg eleven three oh
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York,
Speaker 1: Bloomberg Elving free to Washington, d C. Bloomberg one to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine
Speaker 1: sixty to the country, Sirius XM Chad A one nineteen
Speaker 1: and around the globe the Bloomberg Business and Bloomberg Radio
Speaker 1: dot com. This is Bloomberg Daybreak and it's coming up
Speaker 1: to five thirty on Wall Street. Good morning. I'm Karen Moscow,
Speaker 1: I'm Nathan Hagar. You're listening to Bloomberg Daybreak, and this
Speaker 1: is your daily reminder from Innovation Refunds to apply for
Speaker 1: a payroll tax refund if you're small to medium sized
Speaker 1: business was impacted by COVID nineteen Innovation Refunds clients have
Speaker 1: already claimed over two billion dollars in payroll refunds. Get
Speaker 1: started and get refunds dot com And Nathan, we're nearly
Speaker 1: four hours away from the open of US trading. Let's
Speaker 1: get you up to date on the news you need
Speaker 1: to know at this hour. US futures they're higher after
Speaker 1: stocks snapped a three day winning streaky yesterday, Anticipation of
Speaker 1: future of FED tightening is set a downbeat tone for
Speaker 1: the week, and tech stocks in particular are on course
Speaker 1: for their worst assembersons the dot com bubble burst Nowmora's
Speaker 1: head of process at Strategies, Matthew Roe, believes there'll be
Speaker 1: one trade in particular that will cause investors some pain
Speaker 1: next year. I think it's growth stocks. I mean, I
Speaker 1: think when you look at you know, with interest rates
Speaker 1: and zero, the present value of anything is equal to
Speaker 1: what it will be in the future. Um as a
Speaker 1: discounting function. When you start to take rates up, especially
Speaker 1: for nonprofitable companies, that pretty ugly from a fundamental perspective.
Speaker 1: And Matthew Rowe and Nomura said the broader take down
Speaker 1: turn is a sign of a market trend that could
Speaker 1: continue into three The investors have some more data to
Speaker 1: the jest Karen. Before the holiday weekend, we get the
Speaker 1: latest read on consumer spending at a thirty Wall Street time.
Speaker 1: Two hours after that we'll get the universe. Actually, I
Speaker 1: think it's about an hour and a half, isn't it, Karen,
Speaker 1: that we get the University of Michigan Consumer Sentiment Index.
Speaker 1: Oh yes, and Meanwhile, in China, reversal and COVID policy
Speaker 1: is not having the effect officials initially intended. Infections are
Speaker 1: soaring and keeping people at home, causing a slump and
Speaker 1: travel and economic activity. Let's turn to Tesla now. After
Speaker 1: offloading a massive sum of shares in the company this year,
Speaker 1: the CEO, Elon Musk, says he won't be doing that again,
Speaker 1: at least for a while. Bloomberg Steve Rappaport joins us Live.
Speaker 1: Good Morning, State, Good Morning, Nathan, and Karen. Shares of
Speaker 1: Tesla climbed as much as three and a half percent
Speaker 1: in pre market trading after Elon Musk said he's done
Speaker 1: offloading for now. I'm not selling any stock for I
Speaker 1: don't know a quote a minimum eighteens and twenty four months,
Speaker 1: so you can count on me. Like most most stock
Speaker 1: sales will probably on or something. Musk has made such
Speaker 1: declarations before only to sell more stock. Much of the
Speaker 1: forty billion dollars of shares he sold this year were
Speaker 1: to fund his acquisition of Twitter Live in New York.
Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you.
Speaker 1: Turning to Crypto Now and the latest on ft X
Speaker 1: and Sam Bankman Free The Exchange is former CEO was
Speaker 1: released on a massive bail package after making his first
Speaker 1: US court appearance yesterday, and includes a two fifty million
Speaker 1: dollar person over cognizance bond secured by his parents house
Speaker 1: in California, which one federal prosecutor called one of the
Speaker 1: largest pre trial bonds in US history. And the House
Speaker 1: committee investigating the January six attack on the US Capital
Speaker 1: has released its final report hearing, and it casts the
Speaker 1: blame on former President Donald Trump, specifically for inciting violence
Speaker 1: to try to hold onto power. Futures this morning are
Speaker 1: higher straight ahead, your latest local headlines plus the check
Speaker 1: of sports, and this is Bloomberg. Thank you, cart One
Speaker 1: on Wall Street. Let's bring in Michael bar for look
Speaker 1: at what's going on in New York and around the world. Michael,
Speaker 1: thank you very much. Nathan. A nasty winter storm has
Speaker 1: caused thousands of flight cancelations looting here in the New
Speaker 1: York area. Bloomberg meteorologist Rob Carollin has more, Michael, powerful
Speaker 1: winter storm continues to develop over the eastern Great Lakes
Speaker 1: this morning. This system is going to be driving a
Speaker 1: cold front through much of the eastern part of the
Speaker 1: country this morning, where we're seeing temperatures in the fifties
Speaker 1: and sixties out ahead of the front, generally in the
Speaker 1: teens across the Ohio River Valley behind the front, and
Speaker 1: then it's in the single digits below zero across the
Speaker 1: western Ohio River Valley. All this are now going to
Speaker 1: work its way into the southeastern United States, date, the
Speaker 1: mid Atlantic States, and the Northeast. It's also going to
Speaker 1: set up some very potent lake effects snows outside of
Speaker 1: Buffalo today, they could see anywhere from one to three
Speaker 1: ft of snowfall from today through Christmas Day. And it's
Speaker 1: also going to be accompanied by winds that are gonna
Speaker 1: be gusting in times over sixty miles an hour. This
Speaker 1: is gonna be one of the coldest Christmas is for
Speaker 1: the tree nited States, probably since coldest Christmas in the
Speaker 1: Northeast since at least Michael, Thank you, Rob. But trip
Speaker 1: on a Staten Island ferries turned out to be anything
Speaker 1: but a normal ride. Last night. We received the nine
Speaker 1: one one call reporting a fire in the engine room
Speaker 1: of one of the Staten Island ferries. Frankly with the
Speaker 1: f d n Y says more than eight hundred passengers
Speaker 1: had to be evacuated. The Senate passed at one point
Speaker 1: seven trillion dollars spending bill in an effort to stop
Speaker 1: a government shutdown. Democratic Senator Patrick Langhey. Most of what's
Speaker 1: in here has been put together in a by Paris
Speaker 1: in fashion funding things that we all say we agree with.
Speaker 1: Republican Senator Richard Shelby this bill. We know what it is,
Speaker 1: we know it's us. We know it's not perfect. Uh,
Speaker 1: but it's got a lot of stuff in it, a
Speaker 1: lot of good stuff. The bill includes forty billion dollars
Speaker 1: in disaster relief aid. Global News twenty four hours a
Speaker 1: day on airand on Bloomberg Quickday, powered by more than
Speaker 1: seven hundred journalis An analysts more than twenty countries. Michael Barr,
Speaker 1: this is Bloomberg, Nathan, Michael. Thanks thirty three on Wall
Speaker 1: Street Time for the Bloomberg Sports update. Here's John stan Jauer.
Speaker 1: Thanks Nathan. Hard to believe now, but the Jets, not
Speaker 1: that long ago, we're flirting with the idea of winning
Speaker 1: the a f C East. Their season's pretty much gone
Speaker 1: down to two was four straight losses, just two wins
Speaker 1: in their last eight games, and they're in the last
Speaker 1: place again. Last night in the Jets home finale, pretty
Speaker 1: good effort by the defense allowed Jacksonville the score, only
Speaker 1: one touchdown, but virtually no offense. Jets got an early
Speaker 1: field goal only because of the Jaguars fumble. First half,
Speaker 1: they had three first down sixties six yards, Zack Wilson
Speaker 1: through an interception, and late third quarter Wilson Monster, the
Speaker 1: delight of the fans, got benched again, this time in
Speaker 1: favor of the undrafted former Winnipeg Blue bomber Chris Stradler,
Speaker 1: who did look good for the Jets in the preseason,
Speaker 1: and he outplayed Wilson. He ran for fifty four yards
Speaker 1: and just over a quarter Jaguars one in the rain
Speaker 1: nineteen to three, and Wilson was asked about losing his
Speaker 1: job again. We're not doing anything offensively, and you know,
Speaker 1: I'm trying to figure it out, trying to help get
Speaker 1: the guys going. I'm trying to, you know, get myself
Speaker 1: in a little bit of rhythm, and and you know,
Speaker 1: we had nothing there, and so you know, you can't
Speaker 1: blame him in that situation. You know, you put Chris
Speaker 1: out there, and he's obviously great with his legs and
Speaker 1: his arm and and he was able to give us
Speaker 1: a little bit of the Sparkner. Jets have now use
Speaker 1: four different quarterbacks this season. Giants played tomorrow at Minnesota.
Speaker 1: The Giants win and they get two or three teams
Speaker 1: to lose between Seattle, Detroit and Washington. Giants went to playoff.
Speaker 1: Berth that the Garden Rangers pick Dowagers five to three.
Speaker 1: A goal to assist with Barkley good Rowe Capo Cacos
Speaker 1: whore the go ahead goal with under three minutes left.
Speaker 1: Home games with the Knicks and Nets. Tonight, Nicks against Chicago.
Speaker 1: The Nets Welcome in Milwaukee, John Stactually where Bloomberg Sports,
Speaker 1: Nathan and Bloomberg Sports is brought to you by Audie.
Speaker 1: Don't let someone else drive off in the Audi model
Speaker 1: you've always wanted. Visit your local Frice State autie dealer
Speaker 1: to get behind the wheel of yours today, or visit
Speaker 1: Outie Offers dot com for more information on Wall Street.
Speaker 1: That's time for the Tri State Business Report. Let's check
Speaker 1: in with Bloomberg's head Cory. New York has outlawed the
Speaker 1: manufacture and sale of cosmetics that involve new animal testing.
Speaker 1: The new law takes effect on January first. Violators will
Speaker 1: be fined up to five thousand dollars plus another thousand
Speaker 1: a day if violations continue. Governor Kathy Hokels signed the
Speaker 1: measuring to law Thursday evening. Empire State Building owner Empire
Speaker 1: State Realty Trust has purchased a rental apartments building and
Speaker 1: no hoe, funded partly by the sale of two office
Speaker 1: buildings in the area. Cranes reports Empire State Realty closed
Speaker 1: on the purchase of a full service or rental apartment
Speaker 1: asset on Mulberry for one fifteen million dollars. Google is
Speaker 1: leveraging its partnership with Samsung to launch its first three
Speaker 1: D AD in New York's Times Square. The tech giant
Speaker 1: wants to appeal to young millennials and gen z by
Speaker 1: showcasing the ad on a three D billboard. It's part
Speaker 1: of Google's ongoing The Future Is Unfolding campaign with Samsung,
Speaker 1: which began in threw Bloomberg Trying State Business Report. I'm Ed, Corey,
Speaker 1: Thank you Ed. It is on Wall Street. The following
Speaker 1: is an editorial from Bloomberg Opinion. This editorial was written
Speaker 1: by the Bloomberg Editorial Board. As the demise of the
Speaker 1: ft X crypto empire unfolds. Lawmakers and regulators are grappling
Speaker 1: with a question, what, if anything, should they try to
Speaker 1: do to civilize a market so rife with abuse. Some
Speaker 1: might be tempted to sit back and hope the crypto
Speaker 1: market will simply burn out, putting an end to the
Speaker 1: whole bizarre episode, but that would be wishful thinking. Officials
Speaker 1: need to act on the lessons of fiascos from the
Speaker 1: collapse of the terrorist stable coin to f t X
Speaker 1: to ensure that renewed speculation never threatens the broader financial system.
Speaker 1: To ensure that renewed speculation never threatens the broader financial system,
Speaker 1: clear rules would provide authorities with the framework they need
Speaker 1: to crack down on bad actors, a category into which
Speaker 1: ft X would have fallen. A few regulatory fixes should
Speaker 1: prevent crypto from becoming a systemic threat to seditorial was
Speaker 1: written by the Bloomberg Editorial Board. For more Bloomberg opinion,
Speaker 1: please go to Bloomberg dot com, slash opinion or opi
Speaker 1: and go on the Bloomberg terminal. This has been Bloomberg opinion,
Speaker 1: and you can hear Bloomberg opinion editorials every weekday. At
Speaker 1: this time, terminal customers can read more at O P
Speaker 1: I n Go, and terminal customers may have seen this
Speaker 1: red headline just cross the Bloomberg terminal. Nearly thirty seven
Speaker 1: million people in China may have been infected with COVID
Speaker 1: nineteen on a single day this week. That is according
Speaker 1: to estimates from the Chinese government's top health authority. Minutes
Speaker 1: from an internal meeting of the Chinese National Health Commission
Speaker 1: say as many as two hundred forty eight million people
Speaker 1: nearly eighteen percent of the Chinese population likely contracted the
Speaker 1: virus in the first twenty days of this month. If
Speaker 1: that's accurate, the infection rate would dwarf the previous daily
Speaker 1: record of about four million infections set in January two.
Speaker 1: But again, the new estimate nearly thirty seven million people
Speaker 1: infected with COVID in just one day in China, according
Speaker 1: to the Chinese government. This is Bloomberg Markets, Headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business at and at Bloomberg Quick Take. This
Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow us
Speaker 1: not Index Future as they're higher ahead of inflation data
Speaker 1: that's du out later this morning, amid concerned and maybe
Speaker 1: yet another reason for the Fed to heart and its
Speaker 1: resolve to pursue aggressive policy. And we check the markets
Speaker 1: all day long here on bloomberg S and P future
Speaker 1: is up about twelve points or three tens of upper cent.
Speaker 1: Down futures up almost four tenths of upper center a
Speaker 1: hundred twenty four points, and as dack futures have three
Speaker 1: tents of upper cent or thirty two points. The decks
Speaker 1: in Germany's up half percent. Ten year treasury down five
Speaker 1: thirty seconds, you have three point six nine percent, and
Speaker 1: they yield on a two year four point to seven percent.
Speaker 1: Nimex screwed oils up two point one percent of a
Speaker 1: dollar sixty six at seventy nine dollars thirteen cents of
Speaker 1: barrel comics gold up six ten percent or ten dollars
Speaker 1: ninety cents at eighteen oh six ten anounced the euro
Speaker 1: one six one seven against the dollar, British found one
Speaker 1: point two zero six seven, then one two point six one,
Speaker 1: and bitcoin it's up half percent at about sixteen thousand,
Speaker 1: nine hundred dollars. And that's a Bloomberg business flash now
Speaker 1: here's Michael Barr with more on what's going on around
Speaker 1: the world. Michael, Karen, thank you very much. Frigid air
Speaker 1: making its way east across the United States, with several
Speaker 1: states issuing blizzard warnings. Meteorologists of warning the conditions could
Speaker 1: create bomb cyclone conditions and spots. The weather is also
Speaker 1: caused widespread travel disruptions. The Senate passed the one point
Speaker 1: seven trillion dollars spending bill yesterday and an effort to
Speaker 1: stop a government shut down. The bill now heads to
Speaker 1: the House, where it is expected to pass. In the NFL,
Speaker 1: the Jets lost to the Jaguars three. In the NHL,
Speaker 1: the Islanders beat the Rangers five three the Bruins one.
Speaker 1: In the NBA, the Wizards lost. Global news twenty four
Speaker 1: hours a day, all on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: more than a hundred twenty un Michael bar This is Bloomberg, Nathan, Michael,
Speaker 1: thank you. It is five forty two on Wall Street.
Speaker 1: This is Bloomberg day Break. I'm Nathan Hagar alongside Karen
Speaker 1: Moscow with some other stories making news this morning. The
Speaker 1: State Department says Treasury. I'm sorry the State Department, says
Speaker 1: Secretary of State Antony. I don't know why I keep
Speaker 1: trying to say Treasury, but at any rate, Secretary of
Speaker 1: State Antony Blincoln discussed COVID transparency in a recent call
Speaker 1: with China's foreign minister and stress the importance of Beijing
Speaker 1: being forthright about a growing COVID outbreak in the country.
Speaker 1: Blancoln held the news conference yesterday running through many of
Speaker 1: his department's accomplishments and covering continuing goals. Invest in the
Speaker 1: foundations of our smith at Hall, aligne with our partners
Speaker 1: and allies, compete with China so that we can defend
Speaker 1: our interests and realize our vision for the future. And
Speaker 1: in that call with China, Secretary of State Anthony Blincoln
Speaker 1: also discussed the war in Ukraine. Well, we'rely gonna corporate
Speaker 1: news now, Nathan, and it's more trouble at Tesla. The
Speaker 1: federal government is going to investigate another accident in all
Speaker 1: think Tesla's driver assistance programs. And we get more in
Speaker 1: that story with Bloomberg's at Baxter, the driver at the
Speaker 1: heart of last month's Thanksgiving pile up in the Bay
Speaker 1: Area on the Bay Bridge is blaming Tesla's self driving software.
Speaker 1: Nine people suffered minor injuries in an eight car collision,
Speaker 1: which also caused major traffic glaze. The driver says his
Speaker 1: Tesla s was engaged in full self driving mode from
Speaker 1: software that he had just recently installed. He says the
Speaker 1: car suddenly came to a stop, causing a chain reaction
Speaker 1: collision in San Francisco. I'm at Baxter Bloomberg daybreak, Okay
Speaker 1: and thanks. And there's legal trouble at another tech giant
Speaker 1: this morning. Meta Platforms, the owner of Facebook, has agreed
Speaker 1: to pay seven hundred twenty five million dollars. That's to
Speaker 1: settle a long running lawsuit to claim Facebook illegally shared
Speaker 1: user data with the research firm Cambridge Analytica. This lawsuit
Speaker 1: dates back to eighteen had followed revelations that the UK
Speaker 1: research from tied to former President Donald Trump's seen campaign,
Speaker 1: gained access to Facebook data on as many as eighty
Speaker 1: seven million subscribers. Well with video games are probably on
Speaker 1: the top of most people's minds, considering it's a holiday
Speaker 1: season of ours to oh my gosh, the same n
Speaker 1: b A, you name it, well, Microsoft, you might be
Speaker 1: interested in this then, Microsoft is fighting back against allegations
Speaker 1: from the FTC that it's proposed sixty nine billion dollar
Speaker 1: acquisition of Activision with harm competition in the video game industry,
Speaker 1: and a filing with the FDC yesterday. Microsoft said the
Speaker 1: tie up would create more choices for gamers and game developers.
Speaker 1: The FDC earlier this month voted to suit to block
Speaker 1: the merger between the Xbox Maker and Activision Blizzard, which
Speaker 1: produces popular video games including Call of Duty. We'll have
Speaker 1: to get our kids together to play against each other, Nathan. Yeah,
Speaker 1: they're definitely not gonna be playing with me. I'm still
Speaker 1: stuck on Wortle and I still miss Super Mario Brothers. Oh,
Speaker 1: I love Super Mario. I'm right there with you. Yeah.
Speaker 1: Maybe they'll put one of those uh classic Eddie s
Speaker 1: s under my tree this year. But we got to
Speaker 1: get back to Tesla this morning as well. The EV
Speaker 1: shares EV car makers shares are on the rise this morning. Uh.
Speaker 1: That's after that promise from CEO Elon Musk that he's
Speaker 1: gonna stop selling his shares for at least, in his words,
Speaker 1: the next eighteen to twenty four months. Let's bring in
Speaker 1: alex Web are Bloomberg Quick Take correspondent, go to guy
Speaker 1: at least these days when it comes to Elon Musk
Speaker 1: and Tesla, and nice to talk with you again. Alex
Speaker 1: Um is Elon Musk finally getting on board the idea
Speaker 1: that you buy low and sell high. I mean, it's
Speaker 1: hard to know what what what is driving any of
Speaker 1: his decision making it times beyond. You know, when he
Speaker 1: was selling, it was clear that he had a need
Speaker 1: for capital. He says that he's not going to sell
Speaker 1: any more for now, but stuff changes in the course
Speaker 1: of next year. Then I wouldn't put it past him.
Speaker 1: Still decided to sell some more. He at every junk
Speaker 1: shore when he's sold, I think almost every junk train
Speaker 1: area when he has sold down his as mistake, he said,
Speaker 1: that's it. That's it, Like this time, definitely, that's it.
Speaker 1: You know. So he has covered essentially much the cost
Speaker 1: of his Twitter acquisition. Twitter has capital requirements. It's probably
Speaker 1: covered them for a while. Next year and of next year,
Speaker 1: who knows. He says he won't be sold, but yeah,
Speaker 1: until he does. Yeah, in the meantime, I mean, we've
Speaker 1: seen the plummet in Tesla shares this year, and we've
Speaker 1: heard the pretty scathing commentary from people with or at
Speaker 1: least want to get board seats on Tesla, likes of
Speaker 1: ros Gerbert Gerber Kawasaki, and then this, Uh, I don't
Speaker 1: know if you saw this note from Dan Ives at
Speaker 1: web Bush overnight. He's been bullish on Tesla, and I
Speaker 1: guess still is. He's still saying it's gonna outperform, but
Speaker 1: he's lowered his price target and says Tesla needs a leader,
Speaker 1: not a Ted Striker. Uh. Setting aside the eighties reference,
Speaker 1: is this airplane crashing when it comes to Elon Musk's
Speaker 1: leadership at Tesla. I mean if when you see Dan
Speaker 1: Ives being more critical about so that certainly says Rosscoeber
Speaker 1: of course colossal Tesla bull that both those guys now
Speaker 1: seem to be turning again against Master. That is something
Speaker 1: certainly to write home about. I think that you know,
Speaker 1: ultimately he's a He's someone who was already the CEO
Speaker 1: of several companies Twitter. You know, the even given the
Speaker 1: overvaluation in terms of what he paid for Twitter is
Speaker 1: a company with less than ten percent of the market
Speaker 1: cap of a significantly depressed Tesla stock. I think if
Speaker 1: you're a Tesla investor. You are understandably concerned about the
Speaker 1: amount of time that Musk is spending at Twitter. And
Speaker 1: then you add on top of that, you know a
Speaker 1: lot of these comments about whether he's going to sell
Speaker 1: Tessa sort they came in a Twitter space that that
Speaker 1: Elon must joined late yesterday. Well, he spent an hour
Speaker 1: on that Twitter space. He was on a Twitter space
Speaker 1: that I heard the day before about six am UK time,
Speaker 1: so it was quite late into the evening on the
Speaker 1: West coast. You know, if he's spending an hour a
Speaker 1: day joining Twitter spaces, that's an hour day he's not
Speaker 1: spending on either running Tesla or Twitter. You know, there
Speaker 1: are some massive questions about his time management given the
Speaker 1: now almost half dozen companies, of which is the CEO. Yeah,
Speaker 1: at one point that Elon Musk has made on his
Speaker 1: Twitter feed when it comes to the trajectory for Tesla stock,
Speaker 1: he's been putting some of the blame on the FED
Speaker 1: higher interest rates and the way that that puts on
Speaker 1: tech stocks. Is that part of the story here for Tesla,
Speaker 1: the the central bank policy story? I mean, yes, certainly,
Speaker 1: it is certainly part of the story. It is absolutely
Speaker 1: not the whole story, you know, Tesla was, by a
Speaker 1: lot of estimation significantly overvalued. You know, even now it
Speaker 1: trades at something in the twenty something times multiple in
Speaker 1: terms of forward earnings. You compare that to other car makers,
Speaker 1: you typically traded around five to six times forward earnings.
Speaker 1: And you know, Tesla might have some some you know,
Speaker 1: some good software, some you know, very good electric technology,
Speaker 1: but ultimately it's a car maker, and the underlying economics
Speaker 1: of that are the same as they are for other
Speaker 1: luxury car makers such as BMW or PORTION. So um,
Speaker 1: you know, he has exacerbated what has um been a
Speaker 1: consequence of rising interest rates by the way that he
Speaker 1: has managed and frankly in recent months appears to have
Speaker 1: maybe mismanaged the company. Well, we'll see whether he holds
Speaker 1: true to that word about eighteen to twenty four months
Speaker 1: at least not moving Tesla stuck on his own with
Speaker 1: even more share sales. As always, Alex, great to get
Speaker 1: your take on what's happening in Tesla's the The saga
Speaker 1: really does continue, Alex web Bloomberg quick take correspondent with
Speaker 1: us this morning and looking at Tesla shares in the
Speaker 1: pre market, they are higher by nearly two percent, futures
Speaker 1: are moving higher as well, kind of building on their
Speaker 1: gains this Friday before Christmas. This is Bloomberg Markets headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg Quick Tape.
Speaker 1: This is a Bloomburn business flash. I'm Karen Moscow futures
Speaker 1: are higher this morning. SMP futures up fourteen points. You're
Speaker 1: up a third of up percent. AW future is up
Speaker 1: a third of percent or a hundred twenty six points,
Speaker 1: and NASDACK futures up four tens of uppercent or forty
Speaker 1: four points. The decks in Germany's a half percent ten
Speaker 1: year treasury down five thirty seconds, held three point six
Speaker 1: nine percent. They yield on the two year four point
Speaker 1: to seven percent. Nine excret oil is up two percent,
Speaker 1: up a dollar fifty five at seventy nine dollars four
Speaker 1: cents of Barrel. Comic School is at six ten percent
Speaker 1: or ten dollars ninety cents at eighteen o six twenty announced.
Speaker 1: The euro one point six one seven against the dollar,
Speaker 1: British pound one point two zero seven two and the
Speaker 1: end one thirty two point six too and bitcoin is
Speaker 1: up four ten percent at about sixteen thousand, eight hundred
Speaker 1: d dollars. And that's a Bloomberg Business Flash. Nathan Hagar,
Speaker 1: Karen Moscow, thank you so much. At is five fifty
Speaker 1: six on Wall Street, and it's time for our daily
Speaker 1: Bloomberg Law Brief, exploring legal issues in the news, and
Speaker 1: we keep our focus on Elon Musk this morning, who's
Speaker 1: been at the helm of Twitter for just a couple
Speaker 1: of months now, but piled on controversy after controversy during
Speaker 1: that short tenure. Lately, it's been suspending journalists for questionable reasons.
Speaker 1: This week, after his own Twitter poll showed almost fifty
Speaker 1: eight percent of respondents wanted him to step down, Elon
Speaker 1: Musk says he will find someone else to run the
Speaker 1: social media company. For more, Bloomberg's June Grosso speaks with
Speaker 1: Columbia Law School professor Eric Tally. Musk plans to resign
Speaker 1: as CEO as soon as I find someone foolish enough
Speaker 1: to take the job. Who would be foolish enough to
Speaker 1: take the job when they'll be CEO in name only.
Speaker 1: It's an interesting job advertisement, to be sure, I think
Speaker 1: we have the one person who is foolish enough to
Speaker 1: take the job in that elon Buck, but it makes
Speaker 1: it even hard. Or when he said, yes, I'm gonna
Speaker 1: find a CEO, but I'm still going to be in
Speaker 1: charge of a subsidiary part of Twitter. So how does
Speaker 1: that CEO even operate when you're controlling shareholder is also
Speaker 1: running one of your division. Can the CEO discipline Mr
Speaker 1: Bosk for failure to perform? It's it's a very very
Speaker 1: precarious situation. You know, Managing Twitter is already a pretty
Speaker 1: big ask. Managing it when you are the boss to
Speaker 1: the person who is your boss is going to be
Speaker 1: an even bigger lift. So for the extent that he
Speaker 1: does find takers, they are largely going to be sort
Speaker 1: of lieutenant to him. That's quite frankly doesn't help with
Speaker 1: some of the other challenges that Mr Bosk is facing,
Speaker 1: particularly from his shareholders and investors at other companies and
Speaker 1: notably Tesla. Here, you know, they have become much more
Speaker 1: audibly uppity about you know, his travails over at Twitter. Uh,
Speaker 1: and whether that that entire enterprises not only to astracting him,
Speaker 1: but may also be you know, sort of contrary to
Speaker 1: the better interests of Tesla in terms of developing its
Speaker 1: markets and make sure its products are reliable and coming
Speaker 1: off the production line, you know, heading into a very
Speaker 1: very challenging period of time, and some have urged the
Speaker 1: board to replace must But is that board ever going
Speaker 1: to do anything like that. Possibly it would be quite
Speaker 1: a challenge to do so, given what a central role
Speaker 1: he has and continues to play at Tesla. It's important
Speaker 1: to realize that that Mr mu compared to Twitter, Mr Muskie,
Speaker 1: is only about shareholder at Tesla, and that's declining, you know,
Speaker 1: every time I pick up the newspaper, So he's you know,
Speaker 1: selling off more and more shares of Tesla. So it's
Speaker 1: not completely out of the realm of possibility. On that
Speaker 1: score as well, it's probably worth noting that Senator Warren
Speaker 1: herself has come out of the chick the tires not
Speaker 1: on musk stewardship of Twitter, but on whether he's breaching
Speaker 1: his duties to Tesla and Testla's shareholders. On some level,
Speaker 1: it speaks to the complexity of the situation that he's in.
Speaker 1: You know, when you are so heavily connected to two
Speaker 1: companies that are not in the same industry that maybe
Speaker 1: in some cases working a cross purposes, it's going to
Speaker 1: be hard to stay out of regulator site. And that's
Speaker 1: Columbia Law School professor Eric Tally speaking with Bloomberg's June Grosso.
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