1 00:00:01,680 --> 00:00:04,960 Speaker 1: Live from the Bloomberg Interactive Burgers Studios. Is that Bloomberg 2 00:00:05,040 --> 00:00:08,959 Speaker 1: Day Right for Thursday, January three? Coming up this hour, 3 00:00:09,320 --> 00:00:12,119 Speaker 1: More setbacks for Kevin McCarthy and his quest to be 4 00:00:12,200 --> 00:00:15,360 Speaker 1: Speaker of the House. Amazon is cutting more than eighteen 5 00:00:15,480 --> 00:00:19,120 Speaker 1: thousand jobs. The Fed pushes back against rape cut bets 6 00:00:19,160 --> 00:00:22,079 Speaker 1: as it tries to tackle inflation, and investors away. Two 7 00:00:22,079 --> 00:00:24,720 Speaker 1: more key readings on the labor market ahead of tomorrow's 8 00:00:24,800 --> 00:00:27,960 Speaker 1: jobs report. Mourners pay their respects at the funeral for 9 00:00:27,960 --> 00:00:31,160 Speaker 1: former Pope Benedict Blost. President Biden says he intends to 10 00:00:31,240 --> 00:00:34,680 Speaker 1: visit the US Mexico border. Michael Barr more ahead, I'm 11 00:00:34,760 --> 00:00:36,720 Speaker 1: John stash Our. In sports, the Knicks pulled out a 12 00:00:36,800 --> 00:00:39,520 Speaker 1: narrow home win over the Spurs. The Nets win streak 13 00:00:39,600 --> 00:00:44,760 Speaker 1: ended at Chicago. The Devil's one in Detroitano. That's all 14 00:00:44,920 --> 00:00:48,640 Speaker 1: training ahead on Bloomberg Daybreak on Bloomberg eleven, Free on 15 00:00:48,720 --> 00:00:53,159 Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh 16 00:00:53,159 --> 00:00:57,720 Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius x 17 00:00:57,920 --> 00:01:01,080 Speaker 1: M one nineteen and around the world on Bloomberg Radio 18 00:01:01,200 --> 00:01:07,960 Speaker 1: dot Com and via the Bloomberg Business. Good morning. I'm 19 00:01:08,040 --> 00:01:11,080 Speaker 1: Nathan Hager and I'm Karen Moscow. When US DOT index 20 00:01:11,200 --> 00:01:13,640 Speaker 1: futures they are a little changed to lower this morning. 21 00:01:13,680 --> 00:01:16,000 Speaker 1: We check the markets all day long here on Bloomberg 22 00:01:16,000 --> 00:01:19,120 Speaker 1: with S and P futures. That will change. Down futures also, 23 00:01:19,240 --> 00:01:21,640 Speaker 1: that'll change now. And nasdeck features down about tenth of 24 00:01:21,720 --> 00:01:24,959 Speaker 1: upper cent or about fifteen points. The decks in Germany's 25 00:01:25,000 --> 00:01:27,440 Speaker 1: down two tenths of upper cent. Ten year treasury down 26 00:01:27,480 --> 00:01:30,320 Speaker 1: seven thirty seconds. You have three point seven zero percent 27 00:01:30,680 --> 00:01:33,679 Speaker 1: yield on the two year four point three eight percent. Nathan, 28 00:01:33,840 --> 00:01:35,560 Speaker 1: all right, Karen, We'll have more on the markets in 29 00:01:35,600 --> 00:01:38,720 Speaker 1: a minute, but first, the latest on the political turmoil 30 00:01:38,800 --> 00:01:42,640 Speaker 1: in Washington. The House has adjourned once again without electing 31 00:01:42,680 --> 00:01:45,280 Speaker 1: a speaker. Let's get the latest from Amy Morris in 32 00:01:45,280 --> 00:01:50,200 Speaker 1: our Bloomberg newsroom. In Washington, twenty hardline conservatives are blocking 33 00:01:50,280 --> 00:01:52,960 Speaker 1: g o P leader Kevin McCarthy's ascension to howse speaker, 34 00:01:53,040 --> 00:01:55,960 Speaker 1: and Pennsylvania's Scott Perry is one of them. Because we 35 00:01:56,080 --> 00:02:00,440 Speaker 1: all acknowledge and we all know that Washington is for oen. 36 00:02:00,680 --> 00:02:03,680 Speaker 1: We must take a new path. Laurida's Cat Camot called 37 00:02:03,720 --> 00:02:06,880 Speaker 1: on the GOP to support McCarthy. He has proven that 38 00:02:06,960 --> 00:02:08,560 Speaker 1: he is willing to stand up in the face of 39 00:02:08,600 --> 00:02:12,160 Speaker 1: critics and not only prove them wrong, but work with them. 40 00:02:12,320 --> 00:02:15,040 Speaker 1: How's Republican leaders held a meeting late yesterday to hammer 41 00:02:15,040 --> 00:02:19,120 Speaker 1: out a deal, Still no resolution. Lawmakers reconvene at noon 42 00:02:19,160 --> 00:02:22,360 Speaker 1: today to begin a seventh round of votes in Washington. 43 00:02:22,440 --> 00:02:25,040 Speaker 1: I'm Amy Morris Bloomberg Daybreak. All right, Amy, thank you 44 00:02:25,040 --> 00:02:27,640 Speaker 1: about the standoff on Capitol Hill. Is getting attention from 45 00:02:27,720 --> 00:02:30,600 Speaker 1: the White House. President Biden says he hopes Congress can 46 00:02:30,720 --> 00:02:36,480 Speaker 1: quote get their act together. Congress for caen function. It's 47 00:02:36,560 --> 00:02:39,680 Speaker 1: just an embarrassing the greatest nation in the world. How 48 00:02:39,760 --> 00:02:43,200 Speaker 1: can that be? President Biden says, dysfunction within the GOP 49 00:02:43,560 --> 00:02:45,480 Speaker 1: is not a good look to the rest of the world. 50 00:02:45,600 --> 00:02:48,480 Speaker 1: Now we're getting reaction from former members of Congress as well, 51 00:02:48,560 --> 00:02:51,960 Speaker 1: Karen Democrat. Tim Romer is a former representative from Indiana. 52 00:02:52,280 --> 00:02:55,680 Speaker 1: He says Republicans voting against McCarthy seemed determined to take 53 00:02:55,760 --> 00:02:58,480 Speaker 1: him down, and Democrats have little reason to come to 54 00:02:58,520 --> 00:03:01,200 Speaker 1: his rescue. The Democrat so are in a very good 55 00:03:01,200 --> 00:03:05,400 Speaker 1: position right now. There is no incentive for them to 56 00:03:05,440 --> 00:03:09,960 Speaker 1: help Kevin McCarthy out of this deep dark well at 57 00:03:09,960 --> 00:03:13,040 Speaker 1: a hole that he has done for himself. Former Congressman 58 00:03:13,080 --> 00:03:15,280 Speaker 1: Tim Rohmer was a guest on Bloomberg Sound On with 59 00:03:15,360 --> 00:03:17,920 Speaker 1: Joe Matthew. You can catch the program weekdays at five 60 00:03:17,919 --> 00:03:20,480 Speaker 1: pm Eastern on Bloomberg Radio and listen to the show 61 00:03:20,520 --> 00:03:23,480 Speaker 1: on demand wherever you get your podcasts. Well, Nathan, Another 62 00:03:23,520 --> 00:03:26,680 Speaker 1: major story we're following this morning brings us to Amazon. 63 00:03:26,800 --> 00:03:29,280 Speaker 1: We're learning job cuts at the company will be greater 64 00:03:29,360 --> 00:03:33,600 Speaker 1: than initially anticipated, with Amazon planning to eliminate over eighteen 65 00:03:33,760 --> 00:03:37,680 Speaker 1: thousand rules. Bloomberg's Dog Kristner has the details. The figure 66 00:03:37,680 --> 00:03:40,720 Speaker 1: includes cuts announced back in November, when about ten thousand 67 00:03:40,800 --> 00:03:44,600 Speaker 1: workers lost their jobs. Uncertainty over the outlook caused Amazon 68 00:03:44,640 --> 00:03:48,960 Speaker 1: to accelerate layoffs. CEO Andy Jesse told employees the company 69 00:03:49,000 --> 00:03:53,000 Speaker 1: typically waits to communicate these outcomes until it speaks with 70 00:03:53,040 --> 00:03:56,120 Speaker 1: those directly impacted, but the information was leaked to the 71 00:03:56,160 --> 00:03:58,760 Speaker 1: Wall Street Journal, so the news was shared earlier and 72 00:03:58,840 --> 00:04:02,080 Speaker 1: directly from Jesse. Most of the cuts are in Amazon's 73 00:04:02,080 --> 00:04:06,480 Speaker 1: retail division and human resources. Jesse is already eliminated or 74 00:04:06,560 --> 00:04:11,480 Speaker 1: curtailed experimental and unprofitable businesses in New York. I'm Doug Prisoner, 75 00:04:11,520 --> 00:04:13,920 Speaker 1: Bloomberg Daybreak. All right, Doug, thank you. In those Amazon 76 00:04:14,000 --> 00:04:16,279 Speaker 1: cuts come as we await two key readings on the 77 00:04:16,360 --> 00:04:19,320 Speaker 1: labor market today ahead of tomorrow's jobs report. We're got 78 00:04:19,360 --> 00:04:22,159 Speaker 1: a preview from Bloomberg's Mike McKee. The Fed is focused 79 00:04:22,160 --> 00:04:24,960 Speaker 1: on employment as they raise rates to slow the economy. 80 00:04:25,040 --> 00:04:28,840 Speaker 1: Unemployment should rise, So far it hasn't. Jobless claims have 81 00:04:28,880 --> 00:04:31,880 Speaker 1: remained low and steady, although econdists say it's difficult to 82 00:04:31,920 --> 00:04:34,760 Speaker 1: get a clear read on layoffs during the holidays, so 83 00:04:35,000 --> 00:04:38,440 Speaker 1: don't expect a big change in claims yet. ADP measures 84 00:04:38,440 --> 00:04:41,679 Speaker 1: the number of people on payrolls, in theory that should 85 00:04:41,760 --> 00:04:45,200 Speaker 1: point to the direction of the overall labor market. ADP, however, 86 00:04:45,279 --> 00:04:48,240 Speaker 1: has diverged from the government's payroll report, coming in weaker 87 00:04:48,320 --> 00:04:51,919 Speaker 1: for the past five months. Bottom Line markets are likely 88 00:04:51,960 --> 00:04:55,680 Speaker 1: to look past today's data to Friday's numbers, figuring that's 89 00:04:55,680 --> 00:04:59,599 Speaker 1: what the Fed will be doing. Michael McKee, Bloomberg Daybreak, Hey, Michael, 90 00:04:59,640 --> 00:05:02,080 Speaker 1: thank you. Meantime, the Fed is standing firm and it's 91 00:05:02,160 --> 00:05:04,440 Speaker 1: resolved to bring down inflation. And we get the latest 92 00:05:04,480 --> 00:05:07,520 Speaker 1: live at the Bloomberg. Steve Rappaport, Good morning, Steve, Good morning, 93 00:05:07,600 --> 00:05:10,840 Speaker 1: Karen and Nathan. With that resolve comes a delicate balancing 94 00:05:10,839 --> 00:05:13,880 Speaker 1: act for the Federal Reserve. In a blunt morning to investors, 95 00:05:13,920 --> 00:05:16,400 Speaker 1: minutes from the last policy meetings show the central Bank 96 00:05:16,480 --> 00:05:19,240 Speaker 1: will not cave to public pressure to lower interest rates. 97 00:05:19,360 --> 00:05:22,479 Speaker 1: The Feed is attempting to cut inflation without triggering a recession, 98 00:05:22,640 --> 00:05:25,880 Speaker 1: but JP Morgan Chip US economist Michael Faroli tells Bloomberg 99 00:05:25,880 --> 00:05:28,320 Speaker 1: gets likely too late to achieve that goal. We are 100 00:05:28,360 --> 00:05:30,920 Speaker 1: expecting the economy to slip into recession by the end 101 00:05:30,920 --> 00:05:33,680 Speaker 1: of the year, just due to the lagged effects of 102 00:05:33,240 --> 00:05:35,960 Speaker 1: the of the tightening and financial conditions that the Fed 103 00:05:36,080 --> 00:05:39,040 Speaker 1: is engineered here, as well as the additional great height 104 00:05:39,080 --> 00:05:42,159 Speaker 1: set their their signaling today. The notes also highlight the 105 00:05:42,160 --> 00:05:46,040 Speaker 1: Fed's rate projections being quote notably above market expectations from 106 00:05:46,080 --> 00:05:49,000 Speaker 1: a policy standpoint, Live in New York. I'm Steve Rappaport, 107 00:05:49,080 --> 00:05:51,960 Speaker 1: Bloomberg daybreak. All right, Steve, thanks those conscious comments from 108 00:05:51,960 --> 00:05:55,200 Speaker 1: the Federal helping fuel some caution in stocks this morning. Yesterday, 109 00:05:55,200 --> 00:05:57,520 Speaker 1: both the SMP five hundred and the NASTAC one hundred 110 00:05:57,600 --> 00:06:00,920 Speaker 1: snap two days of losses. Morgan stand chief US equity 111 00:06:00,960 --> 00:06:04,400 Speaker 1: strategist Mike Wilson, who correctly predicted last year's dismal market, 112 00:06:04,480 --> 00:06:07,520 Speaker 1: says stocks are heading even lower that we think three 113 00:06:07,560 --> 00:06:12,359 Speaker 1: thousand is a very achievable number given our confidence on 114 00:06:12,360 --> 00:06:15,839 Speaker 1: our earnings forecast. Ironically, I would say any absence of, 115 00:06:15,920 --> 00:06:20,680 Speaker 1: you know, a recession, meaning companies decide to not off aggressively, 116 00:06:20,920 --> 00:06:25,599 Speaker 1: that target looks more achievable. That may sound counterintuitive, but 117 00:06:25,839 --> 00:06:28,080 Speaker 1: that's the way we're not modeling it today. So our 118 00:06:28,080 --> 00:06:30,560 Speaker 1: bear case is actually kind of we avoid a recession, 119 00:06:30,600 --> 00:06:33,680 Speaker 1: but not to slowdown. If Morgan Stanley chief US equity 120 00:06:33,680 --> 00:06:36,920 Speaker 1: strategist Mike Wilson's prediction comes true, stocks would decline more 121 00:06:36,960 --> 00:06:40,360 Speaker 1: than from current levels, and Wilson is not the only 122 00:06:40,440 --> 00:06:43,239 Speaker 1: big bear on Wall Street. On this morning. Piper Sandler 123 00:06:43,279 --> 00:06:46,520 Speaker 1: strategist Michael Kantrowitz, ranked number three in the last year's 124 00:06:46,600 --> 00:06:49,680 Speaker 1: Institutional Investors survey, predicts the S and P five hundred 125 00:06:49,680 --> 00:06:53,880 Speaker 1: will fall to just above thirty two hundred and again 126 00:06:53,920 --> 00:06:56,359 Speaker 1: futures it will change. This morning, straight ahead, your latest 127 00:06:56,400 --> 00:06:59,680 Speaker 1: local headlines, plus a check of sports, and this is Bloomberg. 128 00:07:03,120 --> 00:07:05,239 Speaker 1: Thank you hearing its forty nine degrees in Central parkot 129 00:07:05,279 --> 00:07:08,040 Speaker 1: Sympatchie Follock this morning. It's gonna stay cloudy and cooler 130 00:07:08,040 --> 00:07:10,680 Speaker 1: today in the low fifties. Might see a shower tonight 131 00:07:10,720 --> 00:07:12,080 Speaker 1: as we get down to the low forties in the 132 00:07:12,120 --> 00:07:14,000 Speaker 1: overnight hours. Time now for a look at some of 133 00:07:14,000 --> 00:07:16,080 Speaker 1: the other stories making news in New York and around 134 00:07:16,120 --> 00:07:18,200 Speaker 1: the world. For that, we are joined by Bloomberg's Michael 135 00:07:18,200 --> 00:07:21,280 Speaker 1: bar Good morning, Michael, Good morning, Nathan. Pope Francis delivered 136 00:07:21,280 --> 00:07:24,440 Speaker 1: the homia at the funeral mass for former Pope Benedict 137 00:07:24,720 --> 00:07:31,960 Speaker 1: Benedetto in Italian. Pope Francis says, Benedict, faithful friend of 138 00:07:32,000 --> 00:07:34,440 Speaker 1: the bridegroom. May you enjoy be complete as you hear 139 00:07:34,560 --> 00:07:38,040 Speaker 1: his voice. Mourners gathered in St. Peter Square outside the 140 00:07:38,080 --> 00:07:41,440 Speaker 1: Vatican today where Benedict is being laid to rest. George 141 00:07:41,440 --> 00:07:46,400 Speaker 1: Mason University professor Helen Alvary spoke about Benedict's legacy. I 142 00:07:46,440 --> 00:07:50,080 Speaker 1: think he's a model of humility and modesty. He was 143 00:07:50,200 --> 00:07:54,200 Speaker 1: definitely a servant of the church. He didn't want to 144 00:07:54,240 --> 00:07:56,880 Speaker 1: come to Rome. He wanted to stay in Germany and 145 00:07:57,480 --> 00:08:00,280 Speaker 1: remain at Theologian. He didn't want to be out of 146 00:08:00,320 --> 00:08:03,160 Speaker 1: the office of Doctrine. But John Paul too really twisted 147 00:08:03,160 --> 00:08:06,120 Speaker 1: his arm, and he really did not want to be pope. 148 00:08:06,640 --> 00:08:09,280 Speaker 1: Ah he he thought, you know, he was not great 149 00:08:09,400 --> 00:08:12,280 Speaker 1: enough for it. Benedict will be buried in the crypt 150 00:08:12,440 --> 00:08:16,320 Speaker 1: under St. Peter's Basilica. President Joe Biden says he intends 151 00:08:16,360 --> 00:08:19,120 Speaker 1: to visit the US Mexico Boarder next week for a 152 00:08:19,160 --> 00:08:23,640 Speaker 1: firsthand look at conditions as his administration contends with surgeon migration. 153 00:08:24,080 --> 00:08:27,160 Speaker 1: Biden is already scheduled to travel to Mexico next week 154 00:08:27,400 --> 00:08:30,720 Speaker 1: to meet with the presidents of Mexico and Canada. President 155 00:08:30,760 --> 00:08:34,600 Speaker 1: Biden's administration urged the U. S. Supreme Court to uphold 156 00:08:34,640 --> 00:08:37,880 Speaker 1: his embattled student debt relief plan. The High Court is 157 00:08:37,920 --> 00:08:41,960 Speaker 1: scheduled to hear arguments February. It's a war of words 158 00:08:42,000 --> 00:08:45,000 Speaker 1: between New York City Mayor Eric Adams and former Mayor 159 00:08:45,040 --> 00:08:49,120 Speaker 1: Bill de Blasio's administration. Adams is calling on his predecessor 160 00:08:49,200 --> 00:08:53,080 Speaker 1: to stop his team from criticizing the current administration. It's 161 00:08:53,080 --> 00:08:55,200 Speaker 1: not called Bill. The other day I said, Bill, what's 162 00:08:55,200 --> 00:08:59,880 Speaker 1: going on? You know what's going on? And then the 163 00:09:00,600 --> 00:09:04,520 Speaker 1: Bill's coms guy who's probably the roast coms guy in 164 00:09:04,559 --> 00:09:10,080 Speaker 1: the History of Communication. Adams is talking about the blosil's 165 00:09:10,120 --> 00:09:14,080 Speaker 1: former spokesperson Bill Ninehard, who has been increasingly critical about 166 00:09:14,120 --> 00:09:17,000 Speaker 1: Dams on Twitter. Adams said they had eight years to 167 00:09:17,000 --> 00:09:19,800 Speaker 1: do their job. Once they're gone, their experts on everything. 168 00:09:20,440 --> 00:09:23,320 Speaker 1: Heavy rains and strong winds. At California overnight it has 169 00:09:23,360 --> 00:09:27,800 Speaker 1: a powerful bomb cyclone washed ashore knocking out power storm. 170 00:09:27,920 --> 00:09:30,840 Speaker 1: Is the third so called atmospheric river storm to impact 171 00:09:30,840 --> 00:09:34,240 Speaker 1: California in the last two weeks. Global News twenty four 172 00:09:34,240 --> 00:09:36,760 Speaker 1: hours a day on air and on Bloomberg Quick Take, 173 00:09:37,000 --> 00:09:40,120 Speaker 1: powered by more than journalist and analysts more than a 174 00:09:40,200 --> 00:09:43,880 Speaker 1: hundred twenty countries at Michael Barr, this is Bloomberg. Nathan Okay, Michael, 175 00:09:43,920 --> 00:09:50,640 Speaker 1: Thanks down Alf of the Bloomberg Sports Update, brought to 176 00:09:50,679 --> 00:09:53,200 Speaker 1: you by Tri State Audi. Good morning, John, Sasha, Good 177 00:09:53,240 --> 00:09:55,720 Speaker 1: morning Nathan. The next lost to the lowly Spurs a 178 00:09:55,760 --> 00:09:58,040 Speaker 1: week ago in San Antonio. Jelly runs and didn't play 179 00:09:58,080 --> 00:09:59,920 Speaker 1: that game. He did play last night at the Guard 180 00:10:00,080 --> 00:10:02,400 Speaker 1: and he scored thirty eight points, career high in the 181 00:10:02,440 --> 00:10:05,680 Speaker 1: regular season. Nicks pulled out the win one seventeen one fourteen. 182 00:10:05,720 --> 00:10:08,640 Speaker 1: The Spurs were coming off at thirty six point loss 183 00:10:08,640 --> 00:10:11,160 Speaker 1: in Brooklyn. The Nets brought that twelve game winning strengt 184 00:10:11,200 --> 00:10:15,320 Speaker 1: to Chicago. It ended the Bulls won one twelve despite 185 00:10:15,360 --> 00:10:17,880 Speaker 1: forty four points by Kevin durand the Nets first loss 186 00:10:17,880 --> 00:10:20,560 Speaker 1: in a month. Devil's won five one at Detroit. They're 187 00:10:20,559 --> 00:10:23,200 Speaker 1: back home tonight. Road games tonight for the Rangers and Islanders. 188 00:10:23,240 --> 00:10:26,040 Speaker 1: Fordam lost a tight one at Rhode Island eight two 189 00:10:26,080 --> 00:10:28,440 Speaker 1: seventy nine, and the Big East Providence beat Yukon. The 190 00:10:28,480 --> 00:10:31,960 Speaker 1: Huskies were fourteen now they've lost their last two. Georgetown, 191 00:10:32,040 --> 00:10:35,080 Speaker 1: with a home loss to Villanova, has now lost twenty 192 00:10:35,160 --> 00:10:38,840 Speaker 1: five consecutive Big East games under coach Patrick Ewing. Red 193 00:10:38,840 --> 00:10:41,600 Speaker 1: Sox having allowed shortstov Xander Bogart's has become a free agent, 194 00:10:41,679 --> 00:10:44,600 Speaker 1: losing him to San Diego, holding on to all star 195 00:10:44,720 --> 00:10:48,800 Speaker 1: third baseman Raphael Dever's new contract eleven years, three hundred 196 00:10:48,800 --> 00:10:51,480 Speaker 1: and thirty one million. The Jets closed after season Sunday 197 00:10:51,520 --> 00:10:54,360 Speaker 1: in Miami. It seems as if every press conference for 198 00:10:54,440 --> 00:10:57,240 Speaker 1: Jets coach Robert Salah is a discussion of where things 199 00:10:57,280 --> 00:11:01,400 Speaker 1: stand with the bench quarterback Zach Wilson. Zack has got 200 00:11:01,480 --> 00:11:03,320 Speaker 1: all the talent in the world, and we have all 201 00:11:03,320 --> 00:11:05,000 Speaker 1: the confidence in the world. And and and it's just like 202 00:11:05,040 --> 00:11:07,360 Speaker 1: I said, from this reset, and we're gonna we're gonna 203 00:11:07,400 --> 00:11:10,520 Speaker 1: grind with him. We are and uh and through hell 204 00:11:10,520 --> 00:11:12,319 Speaker 1: Ohio water. We're going to figure out how to how 205 00:11:12,320 --> 00:11:13,839 Speaker 1: to get into what we know he can do. Mike 206 00:11:13,840 --> 00:11:16,480 Speaker 1: White will be Stalla's starter. On Sunday, the Dolphins are 207 00:11:16,520 --> 00:11:19,880 Speaker 1: likely to start rookie QB. Skyler Thompson Miami, who liked 208 00:11:19,920 --> 00:11:22,000 Speaker 1: the Jets, has lost five and Row can still make 209 00:11:22,000 --> 00:11:24,280 Speaker 1: the playoffs with a win and a New England lost 210 00:11:24,400 --> 00:11:28,120 Speaker 1: in Buffalo. John Stash, Now we're Bloomberg Sports. Nathan, all right, John, 211 00:11:28,120 --> 00:11:30,079 Speaker 1: thank you. In the Bloomberg Sports Report was brought to 212 00:11:30,120 --> 00:11:32,040 Speaker 1: you by Audie. Don't let someone else drive off in 213 00:11:32,080 --> 00:11:34,600 Speaker 1: the Audi model you've always wanted. Visit your local Tri 214 00:11:34,760 --> 00:11:37,760 Speaker 1: state Audie dealer to get behind the wheel of yours today, 215 00:11:37,880 --> 00:11:41,840 Speaker 1: or visit Autie Offers dot com for more information. Coming up, 216 00:11:41,840 --> 00:11:44,760 Speaker 1: we'll look at what could break the standoff on Capitol 217 00:11:44,840 --> 00:11:49,440 Speaker 1: Hill for House leader Kevin McCarthy. First futures are trading flat, 218 00:11:49,600 --> 00:11:52,199 Speaker 1: SMP futures right now down to point, DOW futures down 219 00:11:52,240 --> 00:11:55,079 Speaker 1: eighteen and NASDAC futures a lower by eight points ten. 220 00:11:55,160 --> 00:11:57,520 Speaker 1: Your treasury is down seven thirty seconds. The yield on 221 00:11:57,520 --> 00:12:04,160 Speaker 1: the benchmark three point seven. Live from coast to coast, 222 00:12:04,280 --> 00:12:07,640 Speaker 1: from New York to San Francisco, Boston to Washington, d C. 223 00:12:08,080 --> 00:12:11,920 Speaker 1: Nationwide on Sirius Examp, the Bloomberg Business app, and Bloomberg 224 00:12:12,000 --> 00:12:16,880 Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar, 225 00:12:16,880 --> 00:12:20,000 Speaker 1: and the focus this morning once again remains on Washington, 226 00:12:20,080 --> 00:12:24,000 Speaker 1: d C. The stair down continues between House Republican leader 227 00:12:24,080 --> 00:12:27,480 Speaker 1: Kevin McCarthy and those twenty and now twenty or so 228 00:12:27,920 --> 00:12:32,320 Speaker 1: GOP members who seemed determined to block McCarthy's bid to 229 00:12:32,360 --> 00:12:34,600 Speaker 1: become the next Speaker of the House. Terry Haynes is 230 00:12:34,600 --> 00:12:37,640 Speaker 1: with us this morning now, the founder of Pangea Policy. Terry, 231 00:12:37,679 --> 00:12:40,480 Speaker 1: Good morning. I know we've talked before many times about 232 00:12:40,480 --> 00:12:43,800 Speaker 1: the four factions you see in Washington, d C and 233 00:12:43,880 --> 00:12:46,440 Speaker 1: the two party system, and we're certainly seeing two of 234 00:12:46,480 --> 00:12:51,520 Speaker 1: those factions butt heads this week. What's it gonna take 235 00:12:51,960 --> 00:12:57,320 Speaker 1: for Republicans to get along? Good morning, Nathan, Happy new year, 236 00:12:57,320 --> 00:13:00,840 Speaker 1: and everybody on the program, Thanks for and thank you 237 00:13:00,880 --> 00:13:06,280 Speaker 1: for remembering the four factions so very important. The what's 238 00:13:06,280 --> 00:13:08,880 Speaker 1: that gonna take? Uh? You know, I don't see this 239 00:13:08,960 --> 00:13:13,199 Speaker 1: as as close to ending as we begin today. I'll 240 00:13:13,200 --> 00:13:16,319 Speaker 1: tell you for two reasons. One is kind of a 241 00:13:16,400 --> 00:13:21,280 Speaker 1: lucy in the football program. Uh, the twenty or so dissidence. Uh. 242 00:13:21,840 --> 00:13:26,840 Speaker 1: Uh have a bunch of demands. The demands constantly shift. Uh. 243 00:13:27,360 --> 00:13:29,240 Speaker 1: You can't get to the end of the demands. So 244 00:13:29,360 --> 00:13:31,880 Speaker 1: that's number one. Number two is what I think of 245 00:13:31,920 --> 00:13:34,880 Speaker 1: as a super size problem. What they continue to want 246 00:13:34,880 --> 00:13:37,640 Speaker 1: to what they talk about is, you know, kind of 247 00:13:37,640 --> 00:13:41,120 Speaker 1: the lack of what i'll call kind of conservative focus 248 00:13:41,200 --> 00:13:45,640 Speaker 1: off in the in the broader Republican conference on lots 249 00:13:45,679 --> 00:13:49,040 Speaker 1: of different issues, spending issues, cultural issues, all kinds of 250 00:13:49,040 --> 00:13:51,360 Speaker 1: other things. And what they really say they want when 251 00:13:51,360 --> 00:13:55,199 Speaker 1: it comes down to it, is outside and outside influence 252 00:13:55,240 --> 00:13:58,720 Speaker 1: on policy, on committees, on you know, kind of the 253 00:13:58,840 --> 00:14:02,719 Speaker 1: levers that make things work. That's not an attack on McCarthy, 254 00:14:02,880 --> 00:14:05,280 Speaker 1: that's an attack on the entire conference. In other words, 255 00:14:05,280 --> 00:14:09,520 Speaker 1: they're directly attacking the other, their fellow members who who 256 00:14:09,559 --> 00:14:11,880 Speaker 1: think that, you know, things can be worked out the 257 00:14:11,920 --> 00:14:14,600 Speaker 1: way they are. Uh. So, you know, I don't see 258 00:14:14,600 --> 00:14:19,720 Speaker 1: this as uh as as ending real soon. Um, you 259 00:14:19,760 --> 00:14:22,640 Speaker 1: know there. You know, I think they're into backing themselves 260 00:14:22,680 --> 00:14:27,360 Speaker 1: into the corner because what they're doing with their of 261 00:14:27,400 --> 00:14:29,520 Speaker 1: the conference that they need in order to help make 262 00:14:29,520 --> 00:14:34,360 Speaker 1: a deal is make is make the case that if 263 00:14:34,360 --> 00:14:38,200 Speaker 1: we give in, then the House becomes ungovernable. So, you know, 264 00:14:38,320 --> 00:14:39,920 Speaker 1: I think this is going to take a while, and 265 00:14:39,960 --> 00:14:43,160 Speaker 1: I think increasingly what what folks ought to do is 266 00:14:43,480 --> 00:14:47,840 Speaker 1: be looking past McCarthy and towards either a more consensus 267 00:14:47,880 --> 00:14:50,760 Speaker 1: conservative or a more consensus centrist within the on the 268 00:14:50,800 --> 00:14:53,440 Speaker 1: Republican side. Well, even if there is a consensus to 269 00:14:53,520 --> 00:14:57,200 Speaker 1: come forward, Terry, would a consensus candidate be able to 270 00:14:57,280 --> 00:15:01,000 Speaker 1: meet the demands that those twenty Republicans have? I mean, 271 00:15:01,200 --> 00:15:03,480 Speaker 1: does it make a difference whether they're making the demands 272 00:15:03,480 --> 00:15:07,080 Speaker 1: of McCarthy or anybody else. Yeah, well, a very good question. 273 00:15:07,080 --> 00:15:08,440 Speaker 1: And part of the reason I think this is going 274 00:15:08,480 --> 00:15:12,800 Speaker 1: to take a while is because I think the what 275 00:15:12,960 --> 00:15:17,800 Speaker 1: the conference is is coming to the conclusion, uh, is 276 00:15:17,920 --> 00:15:22,160 Speaker 1: that is that, you know, we just can't continue to 277 00:15:22,160 --> 00:15:25,400 Speaker 1: to focus on the drift drift drip here. These fits 278 00:15:25,480 --> 00:15:28,000 Speaker 1: never gonna be enough for these folks, uh. And what 279 00:15:28,080 --> 00:15:30,000 Speaker 1: I think is gonna end up happening is if you 280 00:15:30,080 --> 00:15:32,800 Speaker 1: end up with somebody other than McCarthy. Because it's very 281 00:15:32,800 --> 00:15:36,880 Speaker 1: clear this isn't really about all the the rearranging the 282 00:15:36,920 --> 00:15:39,400 Speaker 1: deck chairs on the Titanic stuff. This is a personal 283 00:15:39,480 --> 00:15:42,960 Speaker 1: vendetta against McCarthy. Uh. If McCarthy goes away, a lot 284 00:15:42,960 --> 00:15:46,400 Speaker 1: of these issues, a lot of these problems go away. So, uh, 285 00:15:46,480 --> 00:15:49,520 Speaker 1: there's one reason why I think increasingly the Republican Conference 286 00:15:49,560 --> 00:15:52,000 Speaker 1: is gonna look look to somebody else to be the 287 00:15:52,040 --> 00:15:54,440 Speaker 1: speaker in this Congress. So are you saying that they're 288 00:15:54,480 --> 00:15:57,400 Speaker 1: gonna just gonna drop their demands if McCarthy steps aside? 289 00:15:58,280 --> 00:15:59,960 Speaker 1: But yeah, I think a lot of the problems will 290 00:16:00,080 --> 00:16:03,120 Speaker 1: be considered to go away if there's another personality in 291 00:16:03,160 --> 00:16:06,880 Speaker 1: the speaker's chair. Yes, Okay, what what is the possibility 292 00:16:06,960 --> 00:16:10,000 Speaker 1: that we could see some kind of deal made with Democrats? 293 00:16:10,160 --> 00:16:13,320 Speaker 1: I mean that's something that McCarthy had warned could be 294 00:16:13,320 --> 00:16:15,560 Speaker 1: a scenario if this continues to play out. Could we 295 00:16:15,600 --> 00:16:17,560 Speaker 1: could we see a situation where we have some kind 296 00:16:17,600 --> 00:16:21,840 Speaker 1: of I guess American version of a coalition government come 297 00:16:21,880 --> 00:16:25,560 Speaker 1: forward in Congress. Yeah, it's a very smart question. I 298 00:16:25,560 --> 00:16:28,200 Speaker 1: think you know you you played a clip from former 299 00:16:28,200 --> 00:16:33,240 Speaker 1: Congressman Tim Romer, very savvy former Democrats from Indiana. UH, 300 00:16:33,320 --> 00:16:37,120 Speaker 1: and Tim Tim's point was very simple that you know, 301 00:16:37,120 --> 00:16:39,600 Speaker 1: there's actually no incentive for Democrats don't want to work 302 00:16:39,640 --> 00:16:42,600 Speaker 1: on this. Number one UH Number two UH. I know 303 00:16:42,680 --> 00:16:46,720 Speaker 1: what's one thing that's getting play at least on on 304 00:16:46,760 --> 00:16:50,400 Speaker 1: the Bloomberg site is a proposal by for a current 305 00:16:50,440 --> 00:16:54,480 Speaker 1: Congressman Brad Sherman of California that they could probably work 306 00:16:54,560 --> 00:16:59,520 Speaker 1: with UH with Republicans if they'd agree to UH TO 307 00:17:00,000 --> 00:17:04,280 Speaker 1: and increase the debt ceiling deal on spending, you know, 308 00:17:04,320 --> 00:17:08,040 Speaker 1: not shut the government down that sort of thing. UH. 309 00:17:08,400 --> 00:17:11,800 Speaker 1: Congressman Sherman is always a bit of a freelancer, so 310 00:17:11,840 --> 00:17:13,960 Speaker 1: I wouldn't take this as it wouldn't take his view 311 00:17:14,000 --> 00:17:18,800 Speaker 1: as some sort of official Democratic position at all. Secondly, UM, 312 00:17:18,840 --> 00:17:21,159 Speaker 1: you know that doesn't work with the vast majority of 313 00:17:21,160 --> 00:17:24,560 Speaker 1: the conference. The idea that they give up effective control 314 00:17:24,640 --> 00:17:28,360 Speaker 1: on spending in debt limit UH is something that the 315 00:17:28,400 --> 00:17:32,320 Speaker 1: Republicans wouldn't accept. So that's a nonstarter, all right. Terry Haynes, 316 00:17:32,560 --> 00:17:35,840 Speaker 1: founder of Pangia Policy. We'll see how things unfold today 317 00:17:35,880 --> 00:17:39,479 Speaker 1: as we get ready for round seven voting for the 318 00:17:39,520 --> 00:17:42,760 Speaker 1: next Speaker of the House. As we've been saying all week, 319 00:17:42,840 --> 00:17:44,399 Speaker 1: it's been a hundred years since we've been in a 320 00:17:44,400 --> 00:17:47,960 Speaker 1: position like this, and it continues to unfold. In Washington, 321 00:17:48,040 --> 00:17:50,360 Speaker 1: d C. Terry Haynes, founder of Pangia Policy, with us 322 00:17:50,680 --> 00:17:54,199 Speaker 1: this morning. Future is flat. SMP futures little changed to 323 00:17:54,200 --> 00:17:57,320 Speaker 1: the upside down. Futures down three points, NAZAC futures down 324 00:17:57,480 --> 00:18:04,520 Speaker 1: one point. This Bloomberg Markets Headlines and breaking news twenty 325 00:18:04,520 --> 00:18:07,399 Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg 326 00:18:07,400 --> 00:18:17,240 Speaker 1: Business and at Bloomberg Quicktake. She's a Bloomberg Business Flash 327 00:18:17,640 --> 00:18:20,480 Speaker 1: and I'm Karen Moscow US not Index. Futures are little 328 00:18:20,560 --> 00:18:23,960 Speaker 1: change this morning. As investors balanced further signs of China's 329 00:18:24,000 --> 00:18:27,600 Speaker 1: reopening with conscious commentary from the Federal Reserve's latest meeting. 330 00:18:27,920 --> 00:18:31,200 Speaker 1: European shares paired their declines with the report showing Euro 331 00:18:31,280 --> 00:18:34,320 Speaker 1: Area producer prices film more than expected in November. We 332 00:18:34,440 --> 00:18:36,440 Speaker 1: checked the markets all day long here on Bloomberg again, 333 00:18:36,520 --> 00:18:38,920 Speaker 1: futures are little change. The ten year treasury down six 334 00:18:38,960 --> 00:18:41,600 Speaker 1: thirty seconds. He had three point seven zero percent, and 335 00:18:41,680 --> 00:18:44,200 Speaker 1: they yield in the two year four point three eight percent. 336 00:18:44,520 --> 00:18:46,920 Speaker 1: And that's a Bloomberg Business Flash. Now, here's Michael Barr 337 00:18:47,000 --> 00:18:49,119 Speaker 1: with Moore on what's going on around the world. Uncle, 338 00:18:49,119 --> 00:18:51,400 Speaker 1: good morning, Good morning, Karen. The U S House will 339 00:18:51,440 --> 00:18:55,520 Speaker 1: resume session later today after Kevin McCarthy and GOP dissidents 340 00:18:55,840 --> 00:18:59,000 Speaker 1: failed to reach a deal on the California Republicans bid 341 00:18:59,000 --> 00:19:02,400 Speaker 1: to become speaker. Today is day three of the standoff 342 00:19:02,440 --> 00:19:06,359 Speaker 1: between McCarthy and twenty colleagues withholding the support he needs 343 00:19:06,359 --> 00:19:09,520 Speaker 1: for the job. Six votes have failed to elect a speaker. 344 00:19:09,920 --> 00:19:14,879 Speaker 1: Pulpe frances is honoring his predecessor, Benedict. St. Francis is 345 00:19:14,920 --> 00:19:18,240 Speaker 1: presiding over a mass for Benedict before thousands of mourners 346 00:19:18,240 --> 00:19:21,400 Speaker 1: in St. Peter's Square in the NBA. The next one, 347 00:19:21,520 --> 00:19:24,920 Speaker 1: the Nets and Warriors lost in hockey. The Devil's won. 348 00:19:25,359 --> 00:19:27,879 Speaker 1: Global news twenty four hours a day on air and 349 00:19:28,040 --> 00:19:31,399 Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred 350 00:19:31,440 --> 00:19:33,920 Speaker 1: journalists and analysts, are more than a hundred twenty countries. 351 00:19:34,320 --> 00:19:37,000 Speaker 1: Michael Barn, this is Bloomberg, Nathan. Thanks Michael. It's five 352 00:19:37,080 --> 00:19:39,199 Speaker 1: twenty three on Wall Street. I'm Nathan Hagar. This is 353 00:19:39,320 --> 00:19:42,320 Speaker 1: Bloomberg Daybreak. We're watching shares of Amazon this morning, they 354 00:19:42,400 --> 00:19:44,719 Speaker 1: have two and a half percent in the pre market 355 00:19:44,920 --> 00:19:47,840 Speaker 1: on we're now confirmed from CEO Andy Jesse that the 356 00:19:47,840 --> 00:19:51,160 Speaker 1: e commerce giant will lay off more than eighteen thousand employees. 357 00:19:51,160 --> 00:19:55,200 Speaker 1: That's nearly twice as many as previously expected. Potential signed 358 00:19:55,240 --> 00:19:59,160 Speaker 1: the tech industry slump maybe getting worse. Joining us now 359 00:19:59,200 --> 00:20:01,320 Speaker 1: for more on this is a quick take. Corres Fund 360 00:20:01,320 --> 00:20:04,840 Speaker 1: and Alex Webb Alex so, we knew Amazon was tightening 361 00:20:04,840 --> 00:20:07,879 Speaker 1: its belt. Should this even bigger round of job cuts 362 00:20:08,000 --> 00:20:11,200 Speaker 1: come as a surprise for investors? Well, it clearly has 363 00:20:11,520 --> 00:20:14,160 Speaker 1: come as a bit of a surprise, given the share reaction. 364 00:20:14,240 --> 00:20:16,320 Speaker 1: They had telegraphed that would have been reported there was 365 00:20:16,359 --> 00:20:18,000 Speaker 1: going to be something in the order of ten thousand 366 00:20:18,040 --> 00:20:21,359 Speaker 1: DROB cuts, so it's almost double that. Let's not forget though, 367 00:20:21,400 --> 00:20:23,880 Speaker 1: that you know, Amazon has in the order of one 368 00:20:23,920 --> 00:20:28,400 Speaker 1: and a half million employees globally. It added between twenty 369 00:20:28,440 --> 00:20:32,080 Speaker 1: two a million additional head count that's equivalent to the 370 00:20:32,200 --> 00:20:34,720 Speaker 1: entire U S Army, So you know, compared to that, 371 00:20:34,880 --> 00:20:38,240 Speaker 1: eighteen thousand is still a relatively small percentage to people 372 00:20:38,320 --> 00:20:40,800 Speaker 1: being affected by the job cuts. It's not small deal 373 00:20:40,840 --> 00:20:44,439 Speaker 1: for them, but it means that the share price reaction 374 00:20:44,480 --> 00:20:46,960 Speaker 1: two and a half percent when it's eight thousand of 375 00:20:47,040 --> 00:20:49,520 Speaker 1: the one and a half one a half million, seems 376 00:20:49,520 --> 00:20:52,080 Speaker 1: maybe a little bit overplayed. Don't forget, of course, they're 377 00:20:52,080 --> 00:20:56,119 Speaker 1: also talking about some real estate pair backs. Amazon's expansion 378 00:20:56,200 --> 00:20:58,840 Speaker 1: during the lockdowns wasn't just headcount. They also added a 379 00:20:58,880 --> 00:21:01,560 Speaker 1: huge amount of warehousing, and the general consensus being that 380 00:21:01,560 --> 00:21:05,160 Speaker 1: they expanded too quickly. Now so it seems as though 381 00:21:05,359 --> 00:21:09,320 Speaker 1: this is just a reshuffle of sort of a return 382 00:21:10,200 --> 00:21:13,360 Speaker 1: back to a pre pandemic sort of normal for Amazon. 383 00:21:13,800 --> 00:21:16,440 Speaker 1: Is that how we should be looking at it. That's 384 00:21:16,440 --> 00:21:19,399 Speaker 1: half of it. Look, what happened was with that expansion 385 00:21:19,480 --> 00:21:21,600 Speaker 1: is if you look at the revenue per employee, so 386 00:21:21,680 --> 00:21:24,000 Speaker 1: you average out the total revenue by the total head count, 387 00:21:24,240 --> 00:21:27,560 Speaker 1: revenue per employee had actually declined over the past few years, 388 00:21:27,600 --> 00:21:30,840 Speaker 1: which kind of shows how they had expanded too quickly. 389 00:21:31,240 --> 00:21:34,560 Speaker 1: But don't forget. We also then have the broader interest 390 00:21:34,640 --> 00:21:37,480 Speaker 1: rate story, which has helped bring the Amazon share price down. 391 00:21:37,480 --> 00:21:41,000 Speaker 1: It's lost trillion dollars in market cap over the past 392 00:21:41,000 --> 00:21:45,040 Speaker 1: few months. That means that management probably feels the need 393 00:21:45,080 --> 00:21:47,520 Speaker 1: to do something. It's not entirely Amazon's fault that partly 394 00:21:47,720 --> 00:21:50,440 Speaker 1: to do with the recovery post pandemic, but it's also 395 00:21:50,480 --> 00:21:52,160 Speaker 1: to do with, you know, investors being able to find 396 00:21:52,400 --> 00:21:57,080 Speaker 1: good returns or more reliable returns elsewhere. So you look 397 00:21:57,080 --> 00:21:59,560 Speaker 1: at those two factors, the operational impact and then the 398 00:21:59,600 --> 00:22:03,840 Speaker 1: broader stock market performance, and management probably then feels on 399 00:22:03,920 --> 00:22:05,600 Speaker 1: the one had the need to do something, but also 400 00:22:05,640 --> 00:22:08,439 Speaker 1: the opportunity to right size what they would see as 401 00:22:08,520 --> 00:22:11,000 Speaker 1: right sizing their business because you know, they kind of 402 00:22:11,040 --> 00:22:13,000 Speaker 1: have the air cover to do it. Yeah, good point 403 00:22:13,000 --> 00:22:15,919 Speaker 1: about the FED picture as well, but it's coming out 404 00:22:15,920 --> 00:22:19,600 Speaker 1: on the heels this this confirmed news from Amazon of 405 00:22:19,880 --> 00:22:24,399 Speaker 1: Salesforce announcing a ten percent staff layoff. What is that 406 00:22:24,480 --> 00:22:28,680 Speaker 1: to say about the tech sector overall, Well, let's let's 407 00:22:28,680 --> 00:22:30,240 Speaker 1: not forget that a lot of these companies, what we 408 00:22:30,480 --> 00:22:34,040 Speaker 1: call the tech sector, they are enabling up businesses in 409 00:22:34,080 --> 00:22:36,479 Speaker 1: other sectors. And Salesforce, you know, a lot of that 410 00:22:36,640 --> 00:22:40,359 Speaker 1: is sort of the advertising business, right and advertising is, 411 00:22:40,640 --> 00:22:44,320 Speaker 1: as we know, something that gets hit hard by economic slowdowns. 412 00:22:44,400 --> 00:22:47,160 Speaker 1: The first thing that companies tend to slash from their budgets. 413 00:22:48,880 --> 00:22:51,920 Speaker 1: Online sales, of course have been growing, and Salesforce is 414 00:22:51,920 --> 00:22:55,159 Speaker 1: a company that enables that. Um But the pace of 415 00:22:55,160 --> 00:22:57,199 Speaker 1: that growth has slowed down a bit, so you know, 416 00:22:57,240 --> 00:23:02,639 Speaker 1: we're seeing salesforce h you know, probably pre emptying some 417 00:23:02,720 --> 00:23:04,960 Speaker 1: of the some of the broader impacts on its business 418 00:23:04,960 --> 00:23:08,919 Speaker 1: and and trying to get ahead of these effects. All right, 419 00:23:08,960 --> 00:23:12,520 Speaker 1: Alex Web Bloomberg Quick Take correspondent with us this morning 420 00:23:12,560 --> 00:23:16,240 Speaker 1: to talk all things tech once again, and on the 421 00:23:16,280 --> 00:23:20,080 Speaker 1: word official now from CEO Andy Jesse that Amazon will 422 00:23:20,080 --> 00:23:23,920 Speaker 1: be laying off more than eighteen thousand of its more 423 00:23:23,960 --> 00:23:27,760 Speaker 1: than million plus workforce. The shares this morning are higher 424 00:23:28,000 --> 00:23:30,560 Speaker 1: by two and a half percent in the pre market. 425 00:23:30,760 --> 00:23:34,000 Speaker 1: The futures as a whole are trading flat. SMP futures 426 00:23:34,040 --> 00:23:38,040 Speaker 1: little changed, uh DAL futures are down three points, Nasdaq 427 00:23:38,119 --> 00:23:41,520 Speaker 1: futures little changed to the downside as well. Ten Your 428 00:23:41,520 --> 00:23:44,480 Speaker 1: treasury is down five thirty seconds, yield three point seven 429 00:23:44,560 --> 00:23:47,119 Speaker 1: zero percent, and the yield on the two year right 430 00:23:47,160 --> 00:23:50,880 Speaker 1: now is at four point three eight percent. Coming out next, 431 00:23:50,920 --> 00:23:53,520 Speaker 1: your top stories of the morning, local headlines, and a 432 00:23:53,560 --> 00:23:56,160 Speaker 1: fuller check of markets. First, we check in with Rob 433 00:23:56,200 --> 00:24:01,760 Speaker 1: Carolin for today's Bloomberg weather forecast. So, Mary's apache fog 434 00:24:01,800 --> 00:24:04,240 Speaker 1: around the Tristate area this morning looks like kind of 435 00:24:04,240 --> 00:24:06,679 Speaker 1: a cloudy day, shaping up once the fog lifts fifty 436 00:24:06,680 --> 00:24:09,280 Speaker 1: to fifty five. Today, clouds night may be a straight 437 00:24:09,280 --> 00:24:11,359 Speaker 1: shower of forty to forty five. It will turn partly 438 00:24:11,400 --> 00:24:14,400 Speaker 1: sunny in cooler Tomorrow, highs forty five to fifty. Saturday 439 00:24:14,480 --> 00:24:17,840 Speaker 1: partial sun near forty five. Sunday looks partly sunny as well. 440 00:24:17,920 --> 00:24:20,959 Speaker 1: Highest there will be around forty degrees. I'm Rob Carolyn 441 00:24:21,040 --> 00:24:27,720 Speaker 1: with your weekend forecast. I'm Bloomberg eleven three oh broadcasting 442 00:24:28,000 --> 00:24:31,480 Speaker 1: ve from the Bloomberg Interactive Broker Studio in New York, 443 00:24:31,600 --> 00:24:35,360 Speaker 1: Bloomberg Elving three to Washington, d C. Bloomberg ninety nine 444 00:24:35,400 --> 00:24:38,920 Speaker 1: one to Boston, Bloomberg on six. What does San Francisco 445 00:24:39,000 --> 00:24:42,200 Speaker 1: Bloomberg nomes sixty to the country Sirius XM ch A 446 00:24:42,280 --> 00:24:45,440 Speaker 1: one nineteen and around the globe the Bloomberg Business apt 447 00:24:45,560 --> 00:24:54,760 Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak, and 448 00:24:54,840 --> 00:24:57,720 Speaker 1: we're coming up to five thirty on Wall Street. Good morning. 449 00:24:57,760 --> 00:25:00,840 Speaker 1: I'm caerin Moscow, and I'm Nathan Hagar. Bloomberg Daybreak is 450 00:25:00,880 --> 00:25:03,879 Speaker 1: brought to you by Innovation Refunds that small business is 451 00:25:03,920 --> 00:25:07,240 Speaker 1: impacted by the COVID nineteen pandemic may qualify for the 452 00:25:07,320 --> 00:25:11,240 Speaker 1: Employee Retention Credit Let Innovation Refunds. Do the work to 453 00:25:11,280 --> 00:25:13,879 Speaker 1: find out now if your organization qualifies for e r 454 00:25:13,920 --> 00:25:17,520 Speaker 1: C assistance. They've already held businesses claim over two billion 455 00:25:17,560 --> 00:25:21,639 Speaker 1: dollars in payroll tax refunds. Learn more at get refunds 456 00:25:21,720 --> 00:25:24,480 Speaker 1: dot com. And we're nearly four hours away from the 457 00:25:24,480 --> 00:25:26,280 Speaker 1: open of US trading. Let's get you up to date 458 00:25:26,280 --> 00:25:27,840 Speaker 1: on the news you need to know at this hour. 459 00:25:27,920 --> 00:25:31,000 Speaker 1: We begin with the political turmoil in Washington. The House 460 00:25:31,040 --> 00:25:34,520 Speaker 1: has adjourned once again after six rounds of voting without 461 00:25:34,640 --> 00:25:38,480 Speaker 1: electing a speaker. Twenty Conservatives are blocking Kevin McCarthy's path 462 00:25:38,480 --> 00:25:41,800 Speaker 1: to this speakership. Now, the standoff is drawing negative attention 463 00:25:41,840 --> 00:25:45,680 Speaker 1: from President Biden. It's embarrassing for the country, I mean 464 00:25:45,880 --> 00:25:50,119 Speaker 1: literally making a part of their reality. And President Biden 465 00:25:50,200 --> 00:25:53,000 Speaker 1: says that GOP does function is not a good look 466 00:25:53,040 --> 00:25:55,560 Speaker 1: to the rest of the world. Lawmakers reconvene at noon 467 00:25:55,600 --> 00:25:58,679 Speaker 1: today for a seventh round of votes. Ahead of that, 468 00:25:58,800 --> 00:26:01,640 Speaker 1: Karen dissenting republic Kins don't appear to have a specific 469 00:26:01,640 --> 00:26:04,520 Speaker 1: candidate in mind for the speakership. That's according to former 470 00:26:04,520 --> 00:26:08,200 Speaker 1: Indiana Democratic Congressman Tim Romer. He tells this gop TO 471 00:26:08,280 --> 00:26:11,280 Speaker 1: centers just want to oppose McCarthy. These four or five 472 00:26:11,400 --> 00:26:13,679 Speaker 1: or twenty We'll see this as a real victory, just 473 00:26:13,800 --> 00:26:17,240 Speaker 1: taking McCarthy down. Former Congressman Tim Rohmer spoke on Bloomberg 474 00:26:17,320 --> 00:26:19,480 Speaker 1: Sound On with Joe Matthew. You can catch a weekday's 475 00:26:19,520 --> 00:26:23,040 Speaker 1: five pm Eastern on Bloomberg Radio. Well, another major story 476 00:26:23,080 --> 00:26:26,720 Speaker 1: we're following this morning, Nathan, involves those job cuts at Amazon. 477 00:26:26,800 --> 00:26:30,560 Speaker 1: The company plans to eliminate just over eighteen thousand roles, 478 00:26:30,560 --> 00:26:33,159 Speaker 1: more than was initially announced in November. Most of the 479 00:26:33,200 --> 00:26:36,720 Speaker 1: const will come in Amazon's retail division and human resources department. 480 00:26:36,920 --> 00:26:39,119 Speaker 1: As for the broader economy, Karen, all eyes are on 481 00:26:39,160 --> 00:26:41,679 Speaker 1: the Fed and the Central Bank is affirming its resolve 482 00:26:41,760 --> 00:26:45,440 Speaker 1: to bring down inflation. At Bloomberg, Steve Rappaport joins us Live. 483 00:26:45,480 --> 00:26:48,000 Speaker 1: Good morning, Steve, you, good morning, Nathan and Karen. Despite 484 00:26:48,000 --> 00:26:51,280 Speaker 1: that resolve, policymakers say they're not afraid to keep interest 485 00:26:51,359 --> 00:26:53,639 Speaker 1: rates high, at least in the short term. Minutes from 486 00:26:53,640 --> 00:26:57,159 Speaker 1: their last meeting, note in unwarranted easing and financial conditions, 487 00:26:57,280 --> 00:26:59,840 Speaker 1: especially if driven by a misperception by the public of 488 00:26:59,840 --> 00:27:03,680 Speaker 1: the comittee's reaction function would complicate efforts to restore price stability. 489 00:27:03,960 --> 00:27:06,800 Speaker 1: The Central Bank's goal is to eventually bring down inflation 490 00:27:06,840 --> 00:27:09,199 Speaker 1: by two percent or to two percent, while keeping the 491 00:27:09,240 --> 00:27:11,640 Speaker 1: economy out of a recession. Live in New York Time, 492 00:27:11,640 --> 00:27:14,520 Speaker 1: Steve Rapp Report Bloomberg Daybreak, Great Steve, thank you. While 493 00:27:14,520 --> 00:27:18,160 Speaker 1: the SNP and NASDACS shook off fed caution yesterday, snapping 494 00:27:18,160 --> 00:27:21,119 Speaker 1: two days of losses. But Morgan Stanley chief US equity 495 00:27:21,200 --> 00:27:24,879 Speaker 1: strategist Mike Wilson says, with earnings around the corner, investors 496 00:27:24,920 --> 00:27:27,680 Speaker 1: need to gear up for rough days ahead. We're gonna 497 00:27:27,680 --> 00:27:30,080 Speaker 1: get a nasty earnings recession, and so the companies that 498 00:27:30,119 --> 00:27:32,800 Speaker 1: can deliver on the cost deficiency are the ones that 499 00:27:32,840 --> 00:27:35,720 Speaker 1: are going to continue to perform until you fully price 500 00:27:35,960 --> 00:27:38,240 Speaker 1: you know, whatever this downturn on earnings are going to be. 501 00:27:38,680 --> 00:27:41,800 Speaker 1: And Morgan Stanley's Mike Wilson thanks, stocks could decline more 502 00:27:41,800 --> 00:27:45,879 Speaker 1: than twenty percent from current levels. Again, futurists this morning, 503 00:27:45,880 --> 00:27:48,440 Speaker 1: they are little changed. The ten year treasury down six 504 00:27:48,480 --> 00:27:51,800 Speaker 1: thirties seconds, you know, three point seven zero percent yield 505 00:27:51,840 --> 00:27:54,639 Speaker 1: on the two year four point three eight percent, straight ahead, 506 00:27:54,840 --> 00:27:57,960 Speaker 1: your latest local headlines, plus a check of sports, and 507 00:27:58,119 --> 00:28:04,919 Speaker 1: this is Bloomberg. Thanks Karen. It's high thirty one on 508 00:28:04,960 --> 00:28:08,080 Speaker 1: Wall Street and Michael Barr has those New York headlines 509 00:28:08,119 --> 00:28:10,040 Speaker 1: and look at what's going on around the world as well. 510 00:28:10,040 --> 00:28:12,760 Speaker 1: Good morning Michael, Good morning Nathan. Mourners poured into St. 511 00:28:12,760 --> 00:28:15,800 Speaker 1: Peter Square for the funeral of former press a, former Pope, 512 00:28:15,800 --> 00:28:20,000 Speaker 1: Benedict Bell's told and the crowd applauded as Paul bearers 513 00:28:20,080 --> 00:28:24,119 Speaker 1: carried Benedict's cypress coffin out of the basilica and rested 514 00:28:24,119 --> 00:28:27,879 Speaker 1: it before the altar. Helena Alvary is a George Mason 515 00:28:28,000 --> 00:28:31,399 Speaker 1: University professor. He's going to be remembered as one of 516 00:28:31,400 --> 00:28:34,160 Speaker 1: the greatest intellects in the history of the church, which 517 00:28:34,200 --> 00:28:37,480 Speaker 1: is saying something in two thousand years. Uh. He is 518 00:28:37,520 --> 00:28:41,080 Speaker 1: going to be the person who pursued all the great 519 00:28:41,200 --> 00:28:44,400 Speaker 1: questions in you know, more than sixty five books and 520 00:28:44,480 --> 00:28:48,680 Speaker 1: probably hundreds of articles. Heads of state, royalty and clergy 521 00:28:48,720 --> 00:28:51,480 Speaker 1: from around the world flocked to the Vannikan. It is 522 00:28:51,520 --> 00:28:54,600 Speaker 1: a war of words between New York City Mayor Eric 523 00:28:54,640 --> 00:28:59,000 Speaker 1: Adams and former Mayor Bill de Blasio's administration. Adams is 524 00:28:59,080 --> 00:29:01,960 Speaker 1: calling on his predace ester to stop his team from 525 00:29:02,000 --> 00:29:06,400 Speaker 1: criticizing the current administration. I am so tied of the 526 00:29:06,480 --> 00:29:12,240 Speaker 1: previous administration and the antics, Adams slammed de Blasil's former spokesperson, 527 00:29:12,280 --> 00:29:16,000 Speaker 1: who has been increasingly critical of Adams on Twitter. Adams 528 00:29:16,000 --> 00:29:18,320 Speaker 1: said they had eight years to do their job. Once 529 00:29:18,360 --> 00:29:21,880 Speaker 1: they're gone, their experts on everything. President Joe Biden says 530 00:29:21,920 --> 00:29:24,600 Speaker 1: he intends to visit the US Mexico Board next week 531 00:29:24,920 --> 00:29:27,840 Speaker 1: for a firsthand look at the conditions as his administration 532 00:29:27,920 --> 00:29:32,000 Speaker 1: contends with a surge in migration. President Joe Biden said 533 00:29:32,080 --> 00:29:35,920 Speaker 1: he is considering sending Ukraine American Bradley fighting vehicles to 534 00:29:36,040 --> 00:29:39,880 Speaker 1: aid the country's defense against Russia's invasion. That Bradley is 535 00:29:39,880 --> 00:29:43,120 Speaker 1: an armored vehicle capable of transporting soldiers to the front 536 00:29:43,200 --> 00:29:46,800 Speaker 1: lines while attacking targets with cannon and anti tank missiles. 537 00:29:47,160 --> 00:29:50,520 Speaker 1: Rick Singer, the mastermind of the nationwide college admissions bribery 538 00:29:50,600 --> 00:29:54,600 Speaker 1: scheme that instead celebrities and prominent people, was sentenced the 539 00:29:54,680 --> 00:29:57,320 Speaker 1: three and a half years in prison. Global News twenty 540 00:29:57,320 --> 00:29:59,640 Speaker 1: four hours a day on air and on Bloomberg Quick 541 00:29:59,680 --> 00:30:02,280 Speaker 1: Take word by more than twenty seven hundred journalists analysts 542 00:30:02,440 --> 00:30:04,560 Speaker 1: more than a hundred twenty countries. I'm Michael bar this 543 00:30:04,600 --> 00:30:11,920 Speaker 1: is Bloomberg. Nathan all right, Michael, thanks three on Wall 544 00:30:11,920 --> 00:30:13,920 Speaker 1: Street time for the Bloomberg Sports update. Front you by 545 00:30:13,960 --> 00:30:16,240 Speaker 1: tri State out of yours, John stet Show, Thanks Nathan 546 00:30:16,320 --> 00:30:19,040 Speaker 1: san Antonio. Spurs came to New York, lost by thirty 547 00:30:19,160 --> 00:30:22,160 Speaker 1: six at Brooklyn, much closer at the Garden. Spurs had 548 00:30:22,160 --> 00:30:23,600 Speaker 1: a chance to tie the game at the end, but 549 00:30:23,680 --> 00:30:27,240 Speaker 1: the Knicks held on one seventeen one fourteen. Jalen Brunson 550 00:30:27,280 --> 00:30:29,840 Speaker 1: scored thirty eight. Knicks played tomorrow in Toronto. The next 551 00:30:29,920 --> 00:30:34,440 Speaker 1: twelve game win streak ended at Chicago, the Bulls on twelve. 552 00:30:34,480 --> 00:30:37,680 Speaker 1: In the lost, Kevin Rant forty four points, Kyrie every 553 00:30:37,760 --> 00:30:41,040 Speaker 1: had five, Seth Curry two. The rest of the team 554 00:30:41,120 --> 00:30:44,080 Speaker 1: combined for only twenty one. Donovan Mitchell's first game since 555 00:30:44,080 --> 00:30:47,280 Speaker 1: he scored seventy one points held at twenty, but the 556 00:30:47,360 --> 00:30:49,920 Speaker 1: Cavs beat Phoenix. Jana's son to the Comfort was coming 557 00:30:49,960 --> 00:30:53,120 Speaker 1: off a Queer high fifty five points, settled for thirty 558 00:30:53,200 --> 00:30:56,719 Speaker 1: at twenty one rebounds. Tennis has Milwaukee waned Toronto. Lakers 559 00:30:56,800 --> 00:30:59,040 Speaker 1: played with Lebron without Lebron James, who was out sick. 560 00:30:59,080 --> 00:31:01,360 Speaker 1: They still beat in Miami and Detroit hit a shot 561 00:31:01,400 --> 00:31:03,360 Speaker 1: at the buzzer for an upset when at Golden State, 562 00:31:03,400 --> 00:31:06,000 Speaker 1: who would only lost twice all year at home, Devil's 563 00:31:06,040 --> 00:31:08,600 Speaker 1: a five one win at Detroit tomorrow. Hamlet said to 564 00:31:08,680 --> 00:31:12,120 Speaker 1: be showing signs of improvement from this cardiac arrest one 565 00:31:12,160 --> 00:31:15,360 Speaker 1: day in Cincinnati. Quarterback news going to week eighteen, Washington 566 00:31:15,440 --> 00:31:17,959 Speaker 1: will have its third different QB in three weeks, now 567 00:31:18,040 --> 00:31:21,720 Speaker 1: going to rookie Sam Howell. Chicago starts Nathan Peterman for 568 00:31:21,760 --> 00:31:24,120 Speaker 1: the injured Justin Fields, who was trying to set the 569 00:31:24,200 --> 00:31:26,760 Speaker 1: record for most rushing yards by a QB. Miami will 570 00:31:26,800 --> 00:31:30,760 Speaker 1: likely start rookie Skyler Thompson against the Jets. Not known 571 00:31:30,880 --> 00:31:34,080 Speaker 1: yet of Jalen Hurtful return from injury for Philadelphia. The 572 00:31:34,200 --> 00:31:37,480 Speaker 1: Eagles hosted giant Jim Harbaugh Spolk with the Carolina Panthers, 573 00:31:37,560 --> 00:31:40,640 Speaker 1: but said he expects to remain as the coach at Michigan. 574 00:31:41,000 --> 00:31:44,360 Speaker 1: John Stasheller Bloomberg Sports. All right, John, thank you for that, 575 00:31:44,560 --> 00:31:47,480 Speaker 1: and the Bloomberg Sports Report was brought to you by Audie. 576 00:31:47,760 --> 00:31:50,240 Speaker 1: Don't let someone else drive off in the Audi model 577 00:31:50,800 --> 00:31:54,440 Speaker 1: you've always wanted. Visit your local Tri State Audie dealer 578 00:31:54,560 --> 00:31:57,280 Speaker 1: to get behind the wheel of yours today, or visit 579 00:31:57,360 --> 00:32:02,360 Speaker 1: Audie Offers dot com for more information on Wall Street. 580 00:32:02,440 --> 00:32:05,520 Speaker 1: Time for the Tri State Business Report with Bloomberg's ed Corey. 581 00:32:05,960 --> 00:32:10,520 Speaker 1: Rupert Murdoch's Media Empire is recommitting to Manhattan office space 582 00:32:11,000 --> 00:32:14,040 Speaker 1: after News Corps and Fox signed leases that will keep 583 00:32:14,080 --> 00:32:17,520 Speaker 1: the companies in Midtown for another twenty years. New York 584 00:32:17,600 --> 00:32:20,560 Speaker 1: City will begin to replace nearly nine hundred twenty five 585 00:32:20,640 --> 00:32:23,560 Speaker 1: of its fleet vehicles with electric ones thanks to a 586 00:32:23,680 --> 00:32:26,680 Speaker 1: ten million dollar federal grant. The funds will be used 587 00:32:26,720 --> 00:32:29,400 Speaker 1: to buy three hundred eighty two Chevy Bolts, three hundred 588 00:32:29,440 --> 00:32:33,520 Speaker 1: sixty Ford transit vans, and one hundred fifty Ford F 589 00:32:33,680 --> 00:32:37,400 Speaker 1: one fifty E lightning pickups. The Department of Sanitation will 590 00:32:37,400 --> 00:32:41,520 Speaker 1: get twenty five hybrid street sweepers. New Jersey has extended 591 00:32:41,560 --> 00:32:44,840 Speaker 1: its health benefits contract with Horizon Blue Cross Blue Shield 592 00:32:45,160 --> 00:32:48,080 Speaker 1: for another year, even after the state officials alleged the 593 00:32:48,120 --> 00:32:51,560 Speaker 1: health insurer failed to meet terms of the deal. The 594 00:32:51,640 --> 00:32:54,240 Speaker 1: state will pay lower fees in exchange for reducing the 595 00:32:54,360 --> 00:32:58,640 Speaker 1: scope of some services. Horizon was originally hired to provide 596 00:32:59,280 --> 00:33:02,600 Speaker 1: that your Bloomberg dry fake business report. I did Corey alright, 597 00:33:02,840 --> 00:33:06,000 Speaker 1: thank you? It is five on Wall Street. The following 598 00:33:06,120 --> 00:33:10,000 Speaker 1: is an editorial from Bloomberg Opinion. This editorial was written 599 00:33:10,040 --> 00:33:13,600 Speaker 1: by the Bloomberg Editorial Board. Starting this week, travelers on 600 00:33:13,760 --> 00:33:16,120 Speaker 1: US bound flights from China will have to be tested 601 00:33:16,160 --> 00:33:20,360 Speaker 1: for COVID nineteen. Other countries are implementing similar new restrictions. 602 00:33:20,680 --> 00:33:23,640 Speaker 1: Given the scale of the outbreak currently ravaging China, such 603 00:33:23,760 --> 00:33:26,680 Speaker 1: moves make sense, but on their own they aren't enough 604 00:33:26,760 --> 00:33:30,160 Speaker 1: to manage the global risk posed by the virus. The US, 605 00:33:30,240 --> 00:33:33,320 Speaker 1: for its part, should maintain its efforts to supply China 606 00:33:33,560 --> 00:33:37,560 Speaker 1: with more potent mr NA vaccines. It should also lead 607 00:33:37,600 --> 00:33:41,400 Speaker 1: a swift, coordinated global effort to boost genetic sequencing, which 608 00:33:41,440 --> 00:33:45,080 Speaker 1: can help track variants. Critics of testing before travel are right. 609 00:33:45,600 --> 00:33:49,400 Speaker 1: It won't prevent all transmission, but combined with common sense precautions, 610 00:33:49,680 --> 00:33:52,960 Speaker 1: better surveillance, and more vaccines, it should help keep the 611 00:33:53,000 --> 00:33:56,160 Speaker 1: worst effects of the virus at bay. This editorial was 612 00:33:56,200 --> 00:33:59,240 Speaker 1: written by the Bloomberg Editorial Board. For more Bloomberg Opinion, 613 00:33:59,320 --> 00:34:01,840 Speaker 1: please go to Blue Bomberg dot com, slash Opinion or 614 00:34:01,880 --> 00:34:04,760 Speaker 1: OPI and go on the Bloomberg terminal. This has been 615 00:34:04,840 --> 00:34:08,680 Speaker 1: Bloomberg Opinion, and you can hear Bloomberg opinion editorials every weekday. 616 00:34:08,760 --> 00:34:11,759 Speaker 1: At this time, terminal customers can read more at O, 617 00:34:11,960 --> 00:34:15,360 Speaker 1: P I N GO. Now, another story we're following this morning. 618 00:34:15,560 --> 00:34:19,040 Speaker 1: Dell reportedly wants to phase out semiconductors made in China 619 00:34:19,200 --> 00:34:23,440 Speaker 1: by four according to Japan's NIEK news service. The computer 620 00:34:23,560 --> 00:34:26,880 Speaker 1: maker is also telling its suppliers to significantly reduce the 621 00:34:26,920 --> 00:34:30,200 Speaker 1: amount of other components produced in China. Delt reportedly wants 622 00:34:30,239 --> 00:34:34,200 Speaker 1: to diversify its supply chain because of concerns about US 623 00:34:34,440 --> 00:34:38,120 Speaker 1: China tensions. S ANDP futures right now are highed by 624 00:34:38,360 --> 00:34:41,920 Speaker 1: one point, Dow futures are down one point, and NASAC 625 00:34:41,960 --> 00:34:45,160 Speaker 1: futures are higher by six points. Now send your treasury 626 00:34:45,200 --> 00:34:47,759 Speaker 1: is down five thirty seconds. Heal three point seven zero 627 00:34:47,840 --> 00:34:51,440 Speaker 1: percent yield on the two year four point three eight percent. 628 00:34:51,960 --> 00:34:54,520 Speaker 1: Stay with us, We'll get an outlook on this market 629 00:34:54,640 --> 00:34:57,879 Speaker 1: from Eric Friedman of US Bank Asset Management. He joins 630 00:34:57,960 --> 00:35:04,320 Speaker 1: us shortly. This is Bloomberg Markets, headlines and breaking news 631 00:35:04,400 --> 00:35:07,000 Speaker 1: twenty four hours a day at Bloomberg dot Com. Of 632 00:35:07,080 --> 00:35:10,480 Speaker 1: Bloomberg Business at and at Bloomberg Quick Take, this is 633 00:35:10,520 --> 00:35:20,080 Speaker 1: a Bloomberg Business lash and I'm Karen. Moscow futures this 634 00:35:20,360 --> 00:35:24,000 Speaker 1: morning they're little changed to higher SNP futures and down 635 00:35:24,040 --> 00:35:26,440 Speaker 1: future is both pretty much little change. NaSTA Future is 636 00:35:26,480 --> 00:35:28,680 Speaker 1: up a tenth of a percent, about eleven points right now. 637 00:35:29,040 --> 00:35:30,840 Speaker 1: The decks in Germany is down about a tenth of 638 00:35:30,920 --> 00:35:33,560 Speaker 1: uppercent ten year treasury down five thirties seconds. You have 639 00:35:33,640 --> 00:35:36,200 Speaker 1: three point seven zero percent yield on the two year 640 00:35:36,280 --> 00:35:39,160 Speaker 1: four point three eight percent. Nine X for oil is 641 00:35:39,239 --> 00:35:41,520 Speaker 1: up two point seven percent of a dollar ninety six 642 00:35:41,600 --> 00:35:44,480 Speaker 1: at seventy four dollars eighties cents of barrel comes golled 643 00:35:44,480 --> 00:35:46,520 Speaker 1: down two tenths of a percent, or three dollars thirty 644 00:35:46,600 --> 00:35:49,640 Speaker 1: cents at eighteen fifty five seventy announced the euro one 645 00:35:49,680 --> 00:35:51,880 Speaker 1: point six one eight against the dollar. British found one 646 00:35:51,920 --> 00:35:54,480 Speaker 1: point two zero to seven the one thirty two point 647 00:35:54,560 --> 00:35:57,960 Speaker 1: four five and bitcoin this morning it's little change. It's 648 00:35:58,000 --> 00:36:01,080 Speaker 1: had about sixteen thousand, eight hundred dollars. As a Bloomberg 649 00:36:01,120 --> 00:36:03,440 Speaker 1: Business flash, how here's Michael Barr with more on les's 650 00:36:03,480 --> 00:36:06,040 Speaker 1: going on around the world. Michael, Karen, thank you very much. 651 00:36:06,080 --> 00:36:08,759 Speaker 1: The House of Representatives will try now for a third 652 00:36:08,880 --> 00:36:12,879 Speaker 1: day to lock in a speaker. Disagreements among Republicans lad 653 00:36:12,960 --> 00:36:16,480 Speaker 1: to Kevin McCarthy, losing now a total of six ballots. 654 00:36:16,960 --> 00:36:21,840 Speaker 1: Pope Frances is honoring his predecessor, Benedict sixteenth. Frances is 655 00:36:21,920 --> 00:36:25,000 Speaker 1: presiding over a mass for Benedict before thousands of mourners 656 00:36:25,040 --> 00:36:28,800 Speaker 1: in St. Peter's Square. Officials in California ordered evacuations in 657 00:36:28,880 --> 00:36:32,080 Speaker 1: high risk coastal areas as a huge storm barreled into 658 00:36:32,120 --> 00:36:34,759 Speaker 1: the state. It is bringing high winds and rain that 659 00:36:35,040 --> 00:36:38,040 Speaker 1: threatened widespread flooding and knocked out power to more than 660 00:36:38,080 --> 00:36:40,799 Speaker 1: a hundred thousand people in the NBA. The next one 661 00:36:40,920 --> 00:36:43,359 Speaker 1: the Nets and Warriors lost in hockey. The Devil's One 662 00:36:43,680 --> 00:36:45,920 Speaker 1: Global news twenty four hours a day on air and 663 00:36:46,120 --> 00:36:49,040 Speaker 1: on Bloomberg Quick Tank, powered by more than twenty seven 664 00:36:49,120 --> 00:36:51,680 Speaker 1: hundred journalists and analysts more than a hundred twenty countries. 665 00:36:52,040 --> 00:36:54,800 Speaker 1: Michael bar this is Bloomberg. Nathan, Okay, Michael, thank you. 666 00:36:54,840 --> 00:36:57,120 Speaker 1: We're coming up to forty two on Wall Street. This 667 00:36:57,280 --> 00:37:00,400 Speaker 1: is Bloomberg Daybreak. I'm Nathan Hagar along with Karen Moscow. 668 00:37:00,880 --> 00:37:02,400 Speaker 1: Let's take a look at some of the other stories 669 00:37:02,560 --> 00:37:05,760 Speaker 1: we're watching this morning. Strikes on the British rail network 670 00:37:05,800 --> 00:37:09,160 Speaker 1: reach a critical peak today. Some of London's biggest rail 671 00:37:09,200 --> 00:37:12,000 Speaker 1: stations will be closed, while some airports will also be 672 00:37:12,120 --> 00:37:15,319 Speaker 1: deprived of train service. Union train drivers are walking out 673 00:37:15,760 --> 00:37:19,040 Speaker 1: following a long dispute over pay go back. Here in 674 00:37:19,080 --> 00:37:22,240 Speaker 1: the US, Nathan, the labor market is also front and center, 675 00:37:22,320 --> 00:37:25,279 Speaker 1: but this time a focus on jobs. Payroll Process or 676 00:37:25,320 --> 00:37:28,640 Speaker 1: a DP, issues its employment report for December this morning. 677 00:37:28,880 --> 00:37:31,960 Speaker 1: Economists are predicting a gain of around one hundred fifty thousand, 678 00:37:32,040 --> 00:37:35,640 Speaker 1: and Bloomberg's Minnie down Judas has more. November's ADP data 679 00:37:35,680 --> 00:37:38,360 Speaker 1: showed the gain of one hundred twenty seven thousand jobs, 680 00:37:38,440 --> 00:37:44,120 Speaker 1: the weakest showing since January. Some industries, notorably technology and finance, 681 00:37:44,160 --> 00:37:47,480 Speaker 1: are cutting jobs, are freezing hiring, and yet is Bloomberg 682 00:37:47,520 --> 00:37:51,280 Speaker 1: Economics notes almost half of small businesses report difficulty finding 683 00:37:51,360 --> 00:37:55,320 Speaker 1: qualified workers. The government issues official employment data Friday, and 684 00:37:55,400 --> 00:37:58,680 Speaker 1: economists anticipate a modest showing in that report as well. 685 00:37:59,040 --> 00:38:02,239 Speaker 1: Beneath Dealt, Jude I Sploomberg Daybreak Alright, thanks Manny, turning 686 00:38:02,239 --> 00:38:05,440 Speaker 1: to corporate news now. Yesterday's equity session saw shares a 687 00:38:05,520 --> 00:38:09,600 Speaker 1: Jeffrey's Financial Group jump thirteen percent. That comes after a 688 00:38:09,640 --> 00:38:13,560 Speaker 1: report that Japan's Sumitomo Mitsui Financial Group is considering raising 689 00:38:13,640 --> 00:38:16,640 Speaker 1: its steak in the US investment bank. That story now 690 00:38:16,680 --> 00:38:21,320 Speaker 1: from Bloomberg's Charlie Pellett. Summatomo's CEO says he hopes to 691 00:38:21,400 --> 00:38:25,240 Speaker 1: make Jeffreys an equity method affiliate, and that could involve 692 00:38:25,320 --> 00:38:28,640 Speaker 1: an interest of twenty to fifty percent, according to Nikai, 693 00:38:29,160 --> 00:38:31,799 Speaker 1: The CEO did not say when his firm might make 694 00:38:31,880 --> 00:38:36,359 Speaker 1: an additional investment, and indicated that such decisions would come 695 00:38:36,480 --> 00:38:39,880 Speaker 1: once his company holds discussions with New York based Jeffreys 696 00:38:40,120 --> 00:38:44,080 Speaker 1: and US regulators. The Japanese company already has a stake 697 00:38:44,160 --> 00:38:47,480 Speaker 1: of almost five percent in Jeffrey's, part of a strategic 698 00:38:47,520 --> 00:38:52,240 Speaker 1: alliance reached last year in New York. Charlie Pellett Bloomberg Daybreak. 699 00:38:52,400 --> 00:38:54,600 Speaker 1: All right, Charlie, thank you well. One of Wall Street's 700 00:38:54,640 --> 00:38:57,360 Speaker 1: top bears. He's another down year for the stock market. 701 00:38:57,440 --> 00:39:01,160 Speaker 1: Piper Sandler strategist Michael Kantrowitz ranked number three, and the 702 00:39:01,320 --> 00:39:04,960 Speaker 1: last year's Institutional Investors survey predicts that the S and 703 00:39:05,000 --> 00:39:08,239 Speaker 1: P five hundred bill fall this year to a level 704 00:39:08,360 --> 00:39:12,239 Speaker 1: just above the price target is the lowest among Wall 705 00:39:12,280 --> 00:39:15,360 Speaker 1: Street analyst track by Bloomberg. Should that come true, it 706 00:39:15,400 --> 00:39:17,760 Speaker 1: will be only the fifth time in nearly a century 707 00:39:17,880 --> 00:39:21,279 Speaker 1: that the benchmark index suffered at two consecutive years of 708 00:39:21,360 --> 00:39:24,960 Speaker 1: double digit declines. Let sets us up very nicely for 709 00:39:25,080 --> 00:39:28,360 Speaker 1: the conversation we're about to have right now with Eric Friedman, 710 00:39:28,440 --> 00:39:32,560 Speaker 1: chief investment officer at US Bank Asset Management. Ericod Mourning. 711 00:39:32,600 --> 00:39:34,759 Speaker 1: It's nice to speak with you as the SMP five 712 00:39:34,840 --> 00:39:38,160 Speaker 1: hundred sits around a thirty eight hundred fifty level right now, 713 00:39:38,280 --> 00:39:42,239 Speaker 1: but we do keep hearing the Breyers roar should the 714 00:39:42,320 --> 00:39:45,839 Speaker 1: bear case be the base case for this market? Nathan, 715 00:39:45,880 --> 00:39:48,120 Speaker 1: good morning, and to be with you, we do think 716 00:39:48,280 --> 00:39:51,880 Speaker 1: that downsize is the more likely outcome. Let's go over 717 00:39:51,920 --> 00:39:55,440 Speaker 1: the next three to four months. And and so the 718 00:39:55,800 --> 00:39:58,640 Speaker 1: really rationale behind that we think you're hearing across the 719 00:39:58,880 --> 00:40:02,719 Speaker 1: street is number one, unconcerned about earn investimates, the need 720 00:40:02,800 --> 00:40:04,960 Speaker 1: for those to come down, and then secondly just the 721 00:40:05,080 --> 00:40:10,279 Speaker 1: persistency of of inflation and the and they likely that 722 00:40:10,360 --> 00:40:13,600 Speaker 1: we'll see interest rates probably remain a bit higher. I 723 00:40:13,640 --> 00:40:16,200 Speaker 1: think that one of the big reconciliations that has to happen. 724 00:40:17,200 --> 00:40:21,120 Speaker 1: Is the Fed's view on rates and the markets view 725 00:40:21,160 --> 00:40:23,400 Speaker 1: on rates really diverge right now, Nathan. That's something that 726 00:40:23,520 --> 00:40:25,640 Speaker 1: does cause us a little bit of anxiety of the 727 00:40:25,719 --> 00:40:27,960 Speaker 1: next couple of months. Yeah, I guess we're kind of 728 00:40:28,000 --> 00:40:30,480 Speaker 1: seeing that play out with the action and the futures 729 00:40:30,560 --> 00:40:32,799 Speaker 1: this morning. Kind of a note of caution coming off 730 00:40:32,840 --> 00:40:36,320 Speaker 1: the back of the FED minutes yesterday and that warning 731 00:40:36,400 --> 00:40:42,600 Speaker 1: about unwarranted easing of financial conditions potentially causing the FED 732 00:40:42,680 --> 00:40:45,160 Speaker 1: to act here. Does that change your case on what 733 00:40:45,320 --> 00:40:47,120 Speaker 1: the FEDS policy path is going to be over the 734 00:40:47,160 --> 00:40:52,080 Speaker 1: next few months. Yeah, we that that reconciliation that has 735 00:40:52,120 --> 00:40:55,440 Speaker 1: to happen, and really centers around the idea that the 736 00:40:55,520 --> 00:41:00,640 Speaker 1: FED will likely stay more hawkished for longer. And if 737 00:41:00,680 --> 00:41:04,000 Speaker 1: you look at the divergence in in FED futures in 738 00:41:04,160 --> 00:41:06,520 Speaker 1: terms of what the Fed has said and then what 739 00:41:06,640 --> 00:41:10,120 Speaker 1: the market has said, there's about a percent difference between 740 00:41:10,200 --> 00:41:12,759 Speaker 1: now the next year, and that's that's material. Doesn't sound 741 00:41:12,800 --> 00:41:16,320 Speaker 1: like a lot, but if you look at the levels 742 00:41:16,360 --> 00:41:19,920 Speaker 1: of concerns in sort of just discounting future earnings, when 743 00:41:19,960 --> 00:41:21,880 Speaker 1: you have a percent difference in the FED says, Look, 744 00:41:21,920 --> 00:41:24,200 Speaker 1: we think race will be higher. The market says, no, 745 00:41:24,400 --> 00:41:26,600 Speaker 1: we actually think there'll be a bit lower. That's that's 746 00:41:26,600 --> 00:41:29,160 Speaker 1: where we We do think that more information the FED, 747 00:41:29,280 --> 00:41:32,520 Speaker 1: both in terms of their upcoming meeting in February as 748 00:41:32,560 --> 00:41:34,640 Speaker 1: well as more of the speaker series that will start 749 00:41:34,680 --> 00:41:36,640 Speaker 1: hearing more about we do think there's a chance to 750 00:41:36,960 --> 00:41:40,640 Speaker 1: the FED reinforces this idea of longer, of higher rates 751 00:41:40,680 --> 00:41:44,040 Speaker 1: for longer. You said that you think there's gonna be 752 00:41:44,120 --> 00:41:46,480 Speaker 1: more downside over the next few months. Let you find 753 00:41:46,520 --> 00:41:48,040 Speaker 1: you down a little bit on that. How much more 754 00:41:48,239 --> 00:41:51,520 Speaker 1: downside do you think there's gonna be And does that 755 00:41:51,840 --> 00:41:54,640 Speaker 1: imply that you think stocks are going to bounce back 756 00:41:55,440 --> 00:41:57,200 Speaker 1: either there the second quarter or the second half of 757 00:41:57,280 --> 00:42:02,080 Speaker 1: this year. Yeah, we know. We we've put the downside 758 00:42:02,239 --> 00:42:05,120 Speaker 1: risk levels. You know, we do think that the possibility 759 00:42:05,120 --> 00:42:07,920 Speaker 1: of retesting where we came out and the lows of 760 00:42:08,000 --> 00:42:12,359 Speaker 1: of last year is it is probably a likely battleground, 761 00:42:12,440 --> 00:42:14,839 Speaker 1: if you will, So let's call it SMBT hundred as 762 00:42:14,880 --> 00:42:18,000 Speaker 1: a key level. The fact that we couldn't Nathan reach 763 00:42:18,120 --> 00:42:22,080 Speaker 1: thirty nine hundred earlier in the week, we think is 764 00:42:22,360 --> 00:42:24,600 Speaker 1: is something to pay attention to. That's of course, where 765 00:42:24,640 --> 00:42:26,719 Speaker 1: a couple of big moving averages converged. So we do 766 00:42:26,880 --> 00:42:29,839 Speaker 1: think that that, you know, a test of that sub 767 00:42:29,960 --> 00:42:32,520 Speaker 1: thirty level is something that market will is going to 768 00:42:32,600 --> 00:42:35,480 Speaker 1: happen to deal with. Now, we do expect there to 769 00:42:35,600 --> 00:42:40,200 Speaker 1: be a more shallow economic recession, and so our viewpoint, 770 00:42:40,239 --> 00:42:42,960 Speaker 1: our base case right now is that we likely have 771 00:42:43,440 --> 00:42:47,000 Speaker 1: a lower trop of activity. But we do think that 772 00:42:47,200 --> 00:42:49,400 Speaker 1: the duration of that trap, in other words, not so 773 00:42:49,480 --> 00:42:51,600 Speaker 1: much the Y axis but the X acts, which really 774 00:42:51,640 --> 00:42:54,880 Speaker 1: how long that trop lasts, will be key. So we 775 00:42:55,000 --> 00:42:57,440 Speaker 1: do think that that the back half of the year 776 00:42:57,520 --> 00:42:59,560 Speaker 1: isn't going to magically get better, but we do think 777 00:42:59,600 --> 00:43:02,840 Speaker 1: that there's going to be a shallow uh, a shallow 778 00:43:02,920 --> 00:43:06,320 Speaker 1: down that's gonna allow companies that probably recalibrate, And we 779 00:43:06,360 --> 00:43:08,399 Speaker 1: think that the tail this year, in the early part 780 00:43:08,440 --> 00:43:14,080 Speaker 1: of will be a better opportunity for particularly technology and 781 00:43:14,200 --> 00:43:17,120 Speaker 1: some of the longer duration, longer earning cycle types of those. 782 00:43:17,640 --> 00:43:19,839 Speaker 1: All right, you mentioned technology, Do you see any other 783 00:43:20,120 --> 00:43:26,000 Speaker 1: pockets for opportunity on that path into four where we 784 00:43:26,160 --> 00:43:28,759 Speaker 1: could see some upside. We've got about a minute left here, 785 00:43:28,840 --> 00:43:32,080 Speaker 1: Eric Nathon, Probably the playbook for us would be to 786 00:43:32,160 --> 00:43:35,440 Speaker 1: focus on cash flows first, So we like utilities, We 787 00:43:35,560 --> 00:43:39,120 Speaker 1: like infrastructure. We think that energy slad a decent fundamental 788 00:43:39,200 --> 00:43:41,440 Speaker 1: case as well. That's the playbook that we'd be involved 789 00:43:41,560 --> 00:43:45,320 Speaker 1: with as the market really wrestles with with this this 790 00:43:45,480 --> 00:43:47,680 Speaker 1: interest rate phenomenon. So, I mean the first part, we 791 00:43:47,719 --> 00:43:50,920 Speaker 1: do think it's too early on technology. We think cyclicals 792 00:43:50,960 --> 00:43:53,480 Speaker 1: and value are probably a place that the people can 793 00:43:53,680 --> 00:43:56,520 Speaker 1: again hide out in. But this is probably more of 794 00:43:56,680 --> 00:44:00,360 Speaker 1: a of a relative opportunity than an absolute opportunity until 795 00:44:00,400 --> 00:44:04,480 Speaker 1: we can see more stability with both you know, caex 796 00:44:04,560 --> 00:44:06,960 Speaker 1: four pasts as well as what's gonna happen with injured trades. 797 00:44:07,600 --> 00:44:10,480 Speaker 1: Really appreciate getting your insights this morning, Eric, thanks so 798 00:44:10,600 --> 00:44:13,200 Speaker 1: much for being with us this morning. Eric Friedman, chief 799 00:44:13,280 --> 00:44:18,240 Speaker 1: investment officer at us Bank Asset Management. Futures this morning 800 00:44:18,800 --> 00:44:22,080 Speaker 1: trading flat after those fed minutes. We've got SMP futures 801 00:44:22,160 --> 00:44:25,000 Speaker 1: hired by two points right now. It's been a swing 802 00:44:25,120 --> 00:44:29,759 Speaker 1: between gains and losses just incrementally on the session this morning. 803 00:44:29,800 --> 00:44:32,319 Speaker 1: Down futures are hired by five points and a sore 804 00:44:32,400 --> 00:44:35,919 Speaker 1: NASTAC futures actually and the tenure treasury right now down 805 00:44:36,000 --> 00:44:38,600 Speaker 1: three thirty seconds. You'ld three point six nine percent, and 806 00:44:38,719 --> 00:44:40,839 Speaker 1: the yield on the two year is at four point 807 00:44:40,920 --> 00:44:44,120 Speaker 1: three seven percent. I'm ex Scrooge moment higher two and 808 00:44:44,200 --> 00:44:46,319 Speaker 1: a half percent, or a dollar eighty one seventy four 809 00:44:46,400 --> 00:44:49,839 Speaker 1: dollars sixty five cents. Baryl Comex golds down two tenths 810 00:44:49,920 --> 00:44:53,799 Speaker 1: percent at eighteen fifty four seventy announced and right now 811 00:44:53,880 --> 00:44:57,000 Speaker 1: the Euro slightly stronger against the dollar, trading at one 812 00:44:57,040 --> 00:45:03,120 Speaker 1: point zero six one four. This is Bloomberg Markets, headlines 813 00:45:03,200 --> 00:45:06,160 Speaker 1: and breaking news twenty four hours a day at Bloomberg 814 00:45:06,239 --> 00:45:09,560 Speaker 1: dot Com, the Bloomberg Business at Land at Bloomberg Quicktake. 815 00:45:09,800 --> 00:45:19,520 Speaker 1: This's a Bloomberg Business flash, and I'm Karen Moscow. Futures 816 00:45:19,520 --> 00:45:22,480 Speaker 1: are little change this morning. The decks in Germany's down 817 00:45:22,520 --> 00:45:24,680 Speaker 1: a tenth of upper cent and the tenure treasury down 818 00:45:24,719 --> 00:45:27,320 Speaker 1: three thirty seconds you at three point six nine percent. 819 00:45:27,400 --> 00:45:30,160 Speaker 1: They yield on the two year four point three seven percent. 820 00:45:30,680 --> 00:45:33,759 Speaker 1: Nimex screwed oil is down is up rather up two 821 00:45:33,760 --> 00:45:36,400 Speaker 1: point six percent, up a dollar eighty nine It's seventy 822 00:45:36,440 --> 00:45:39,680 Speaker 1: four dollars seventy three cents. A barrel comes Gold is 823 00:45:39,800 --> 00:45:42,080 Speaker 1: down a quarter percent or five dollars twenty cents at 824 00:45:42,120 --> 00:45:45,319 Speaker 1: eighteen fifty three eighty announced the euro this morning one 825 00:45:45,360 --> 00:45:48,279 Speaker 1: point six one four against the dollar, the yen one 826 00:45:48,360 --> 00:45:51,840 Speaker 1: thirty two point for eight and as a Bloomberg Business Flash, 827 00:45:52,080 --> 00:45:55,279 Speaker 1: Nathan all right, Karen, Thanks, it's almost fifty six on 828 00:45:55,360 --> 00:45:58,160 Speaker 1: Wall Street. It's time for our daily Bloomberg lob Brief, 829 00:45:58,200 --> 00:46:01,040 Speaker 1: exploring legal issues in the news. Today we look at 830 00:46:01,080 --> 00:46:04,640 Speaker 1: one of the most controversial terms in Supreme Court history. 831 00:46:05,000 --> 00:46:08,000 Speaker 1: Two saw the leak of a draft opinion that would 832 00:46:08,000 --> 00:46:12,000 Speaker 1: eventually overturn abortion rights. There were ethics scandals, a man 833 00:46:12,160 --> 00:46:15,560 Speaker 1: charged with the attempted murder of Justice Brett Kavanaugh, and 834 00:46:15,800 --> 00:46:19,040 Speaker 1: public confidence in the Court at an all time low. 835 00:46:19,360 --> 00:46:22,680 Speaker 1: But you never know any of that. Reading Chief Justice 836 00:46:22,800 --> 00:46:26,359 Speaker 1: John Roberts year end report on the Judiciary for more, 837 00:46:26,560 --> 00:46:30,760 Speaker 1: Bloomberg's June Grosso speaks with constitutional law professor Stephen Vladdock 838 00:46:30,960 --> 00:46:34,040 Speaker 1: of the University of Texas Law School. His report was 839 00:46:34,160 --> 00:46:39,120 Speaker 1: most remarkable for what it didn't say about two being 840 00:46:39,200 --> 00:46:42,560 Speaker 1: this tumultuous year at the Court. Yeah, I think that's right, 841 00:46:42,600 --> 00:46:44,680 Speaker 1: and I think the you know, the year end report, 842 00:46:44,840 --> 00:46:48,440 Speaker 1: at least as it was originally conceigued by two Cutice 843 00:46:48,520 --> 00:46:51,279 Speaker 1: War and Burger was meant to be a bit more 844 00:46:51,360 --> 00:46:56,720 Speaker 1: of a sober and transparent reflection on not necessarily individual 845 00:46:56,800 --> 00:46:59,320 Speaker 1: decision June, but on the work of the Court and 846 00:46:59,480 --> 00:47:02,800 Speaker 1: on play is where the Court, specifically in the federal 847 00:47:02,880 --> 00:47:07,200 Speaker 1: courts in general, could benefit from potential legislative reforms, and 848 00:47:07,280 --> 00:47:10,000 Speaker 1: I think what we saw in this year's report is 849 00:47:10,040 --> 00:47:12,640 Speaker 1: really very little of that. No reflection on where the 850 00:47:12,719 --> 00:47:16,360 Speaker 1: Court is as an institution, no reflection on potential places 851 00:47:16,440 --> 00:47:20,560 Speaker 1: where changes might benefit the judiciary. Really just not much 852 00:47:20,600 --> 00:47:23,719 Speaker 1: more than an anecdote, and thank you to Congress for 853 00:47:23,880 --> 00:47:27,920 Speaker 1: legislation that already passed about judicial security. What was glaringly 854 00:47:28,320 --> 00:47:31,960 Speaker 1: missing there was no mention of the leak of the 855 00:47:32,080 --> 00:47:36,279 Speaker 1: draft opinion in the Job's case and the investigation that 856 00:47:36,520 --> 00:47:39,719 Speaker 1: Roberts had ordered into the leak more than seven months ago. 857 00:47:40,320 --> 00:47:43,000 Speaker 1: I'm not supprised there's no mention of it in the report. 858 00:47:43,080 --> 00:47:45,520 Speaker 1: I'm a little suppised in the mention of it anywhere else, 859 00:47:45,680 --> 00:47:48,400 Speaker 1: But I think so it's a symptom of this broader disease, 860 00:47:48,520 --> 00:47:52,520 Speaker 1: which is that there are pretty significant issues affecting the 861 00:47:52,600 --> 00:47:56,440 Speaker 1: Supreme Court that are unrelated to the substance of specific 862 00:47:56,520 --> 00:48:00,120 Speaker 1: decisions and by not addressing those issues. What did our 863 00:48:00,120 --> 00:48:02,160 Speaker 1: own report does is it says one of two things. 864 00:48:02,280 --> 00:48:05,640 Speaker 1: It's truth. Either the Chief Justice doesn't agree that these 865 00:48:05,680 --> 00:48:09,560 Speaker 1: are serious issues worthy of conversation and studies, or you know, 866 00:48:09,680 --> 00:48:11,640 Speaker 1: he agrees that they're serious issues, but he doesn't think 867 00:48:11,680 --> 00:48:14,680 Speaker 1: that the political branches should have any role in discussing 868 00:48:14,920 --> 00:48:17,279 Speaker 1: or responding to them. And you know, dude, I don't 869 00:48:17,320 --> 00:48:20,200 Speaker 1: know which of those two things it's an accurate description 870 00:48:20,480 --> 00:48:22,719 Speaker 1: of where the Chief Justice is. I think they're both 871 00:48:22,800 --> 00:48:27,279 Speaker 1: problematic in separate, but you know, equally important respects. See, 872 00:48:27,400 --> 00:48:30,640 Speaker 1: I'm beginning to think we are not going to find 873 00:48:30,719 --> 00:48:34,320 Speaker 1: out where the lead came from, not because they haven't 874 00:48:34,360 --> 00:48:36,520 Speaker 1: found out, but that they're just not going to tell us. 875 00:48:36,800 --> 00:48:40,000 Speaker 1: You would ask me, gosh, last July, I think I 876 00:48:40,000 --> 00:48:42,359 Speaker 1: would have predicted this exact in neumb right. I mean, 877 00:48:42,680 --> 00:48:46,560 Speaker 1: this always had all of the hallmarks of a you know, 878 00:48:46,800 --> 00:48:49,640 Speaker 1: don't worry, trust us, We've got us under control, and 879 00:48:49,920 --> 00:48:52,440 Speaker 1: we can think of reasons why we're never going to 880 00:48:52,520 --> 00:48:54,960 Speaker 1: find out. Perhaps the Chief Justice did not like the 881 00:48:55,040 --> 00:48:57,560 Speaker 1: answer when they figured out who the leaker was. Perhaps 882 00:48:57,600 --> 00:48:59,880 Speaker 1: they really haven't figured out where the leaker was, and 883 00:49:00,120 --> 00:49:02,440 Speaker 1: whatever it is. Yeah. I think anyone who thought this 884 00:49:02,560 --> 00:49:06,160 Speaker 1: was going to be some big public thing, I think 885 00:49:06,360 --> 00:49:09,400 Speaker 1: didn't fully appreciate how little it is in the Supreme 886 00:49:09,480 --> 00:49:13,239 Speaker 1: Court interest to perpetuate the conversation about leaks and its 887 00:49:13,360 --> 00:49:17,000 Speaker 1: internal decision making processies. And that was Stephen Vladdock of 888 00:49:17,040 --> 00:49:20,560 Speaker 1: the University of Texas Law School speaking with Bloomberg's June Grosso. 889 00:49:20,719 --> 00:49:23,279 Speaker 1: You can catch more of that interview, plus analysis of 890 00:49:23,360 --> 00:49:27,040 Speaker 1: the latest legal news by subscribing to the Bloomberg Law Podcast. 891 00:49:27,160 --> 00:49:30,360 Speaker 1: You can download the show at Bloomberg dot com slash podcast, 892 00:49:30,800 --> 00:49:34,560 Speaker 1: and attorneys can find exceptional legal research and business development 893 00:49:34,600 --> 00:49:37,680 Speaker 1: tools at Bloomberg Law dot com and on the Bloomberg 894 00:49:37,840 --> 00:49:42,560 Speaker 1: terminal at b law. Go Futures flat will check the 895 00:49:42,640 --> 00:49:45,120 Speaker 1: business headlines, all the news you need to start your 896 00:49:45,280 --> 00:49:48,359 Speaker 1: day hour two if Bloomberg Daybreak starts right now,