Speaker 1: Live from the Bloomberg Interactive Burgers Studios. Is that Bloomberg
Speaker 1: Day Right for Thursday, January three? Coming up this hour,
Speaker 1: More setbacks for Kevin McCarthy and his quest to be
Speaker 1: Speaker of the House. Amazon is cutting more than eighteen
Speaker 1: thousand jobs. The Fed pushes back against rape cut bets
Speaker 1: as it tries to tackle inflation, and investors away. Two
Speaker 1: more key readings on the labor market ahead of tomorrow's
Speaker 1: jobs report. Mourners pay their respects at the funeral for
Speaker 1: former Pope Benedict Blost. President Biden says he intends to
Speaker 1: visit the US Mexico border. Michael Barr more ahead, I'm
Speaker 1: John stash Our. In sports, the Knicks pulled out a
Speaker 1: narrow home win over the Spurs. The Nets win streak
Speaker 1: ended at Chicago. The Devil's one in Detroitano. That's all
Speaker 1: training ahead on Bloomberg Daybreak on Bloomberg eleven, Free on
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh
Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius x
Speaker 1: M one nineteen and around the world on Bloomberg Radio
Speaker 1: dot Com and via the Bloomberg Business. Good morning. I'm
Speaker 1: Nathan Hager and I'm Karen Moscow. When US DOT index
Speaker 1: futures they are a little changed to lower this morning.
Speaker 1: We check the markets all day long here on Bloomberg
Speaker 1: with S and P futures. That will change. Down futures also,
Speaker 1: that'll change now. And nasdeck features down about tenth of
Speaker 1: upper cent or about fifteen points. The decks in Germany's
Speaker 1: down two tenths of upper cent. Ten year treasury down
Speaker 1: seven thirty seconds. You have three point seven zero percent
Speaker 1: yield on the two year four point three eight percent. Nathan,
Speaker 1: all right, Karen, We'll have more on the markets in
Speaker 1: a minute, but first, the latest on the political turmoil
Speaker 1: in Washington. The House has adjourned once again without electing
Speaker 1: a speaker. Let's get the latest from Amy Morris in
Speaker 1: our Bloomberg newsroom. In Washington, twenty hardline conservatives are blocking
Speaker 1: g o P leader Kevin McCarthy's ascension to howse speaker,
Speaker 1: and Pennsylvania's Scott Perry is one of them. Because we
Speaker 1: all acknowledge and we all know that Washington is for oen.
Speaker 1: We must take a new path. Laurida's Cat Camot called
Speaker 1: on the GOP to support McCarthy. He has proven that
Speaker 1: he is willing to stand up in the face of
Speaker 1: critics and not only prove them wrong, but work with them.
Speaker 1: How's Republican leaders held a meeting late yesterday to hammer
Speaker 1: out a deal, Still no resolution. Lawmakers reconvene at noon
Speaker 1: today to begin a seventh round of votes in Washington.
Speaker 1: I'm Amy Morris Bloomberg Daybreak. All right, Amy, thank you
Speaker 1: about the standoff on Capitol Hill. Is getting attention from
Speaker 1: the White House. President Biden says he hopes Congress can
Speaker 1: quote get their act together. Congress for caen function. It's
Speaker 1: just an embarrassing the greatest nation in the world. How
Speaker 1: can that be? President Biden says, dysfunction within the GOP
Speaker 1: is not a good look to the rest of the world.
Speaker 1: Now we're getting reaction from former members of Congress as well,
Speaker 1: Karen Democrat. Tim Romer is a former representative from Indiana.
Speaker 1: He says Republicans voting against McCarthy seemed determined to take
Speaker 1: him down, and Democrats have little reason to come to
Speaker 1: his rescue. The Democrat so are in a very good
Speaker 1: position right now. There is no incentive for them to
Speaker 1: help Kevin McCarthy out of this deep dark well at
Speaker 1: a hole that he has done for himself. Former Congressman
Speaker 1: Tim Rohmer was a guest on Bloomberg Sound On with
Speaker 1: Joe Matthew. You can catch the program weekdays at five
Speaker 1: pm Eastern on Bloomberg Radio and listen to the show
Speaker 1: on demand wherever you get your podcasts. Well, Nathan, Another
Speaker 1: major story we're following this morning brings us to Amazon.
Speaker 1: We're learning job cuts at the company will be greater
Speaker 1: than initially anticipated, with Amazon planning to eliminate over eighteen
Speaker 1: thousand rules. Bloomberg's Dog Kristner has the details. The figure
Speaker 1: includes cuts announced back in November, when about ten thousand
Speaker 1: workers lost their jobs. Uncertainty over the outlook caused Amazon
Speaker 1: to accelerate layoffs. CEO Andy Jesse told employees the company
Speaker 1: typically waits to communicate these outcomes until it speaks with
Speaker 1: those directly impacted, but the information was leaked to the
Speaker 1: Wall Street Journal, so the news was shared earlier and
Speaker 1: directly from Jesse. Most of the cuts are in Amazon's
Speaker 1: retail division and human resources. Jesse is already eliminated or
Speaker 1: curtailed experimental and unprofitable businesses in New York. I'm Doug Prisoner,
Speaker 1: Bloomberg Daybreak. All right, Doug, thank you. In those Amazon
Speaker 1: cuts come as we await two key readings on the
Speaker 1: labor market today ahead of tomorrow's jobs report. We're got
Speaker 1: a preview from Bloomberg's Mike McKee. The Fed is focused
Speaker 1: on employment as they raise rates to slow the economy.
Speaker 1: Unemployment should rise, So far it hasn't. Jobless claims have
Speaker 1: remained low and steady, although econdists say it's difficult to
Speaker 1: get a clear read on layoffs during the holidays, so
Speaker 1: don't expect a big change in claims yet. ADP measures
Speaker 1: the number of people on payrolls, in theory that should
Speaker 1: point to the direction of the overall labor market. ADP, however,
Speaker 1: has diverged from the government's payroll report, coming in weaker
Speaker 1: for the past five months. Bottom Line markets are likely
Speaker 1: to look past today's data to Friday's numbers, figuring that's
Speaker 1: what the Fed will be doing. Michael McKee, Bloomberg Daybreak, Hey, Michael,
Speaker 1: thank you. Meantime, the Fed is standing firm and it's
Speaker 1: resolved to bring down inflation. And we get the latest
Speaker 1: live at the Bloomberg. Steve Rappaport, Good morning, Steve, Good morning,
Speaker 1: Karen and Nathan. With that resolve comes a delicate balancing
Speaker 1: act for the Federal Reserve. In a blunt morning to investors,
Speaker 1: minutes from the last policy meetings show the central Bank
Speaker 1: will not cave to public pressure to lower interest rates.
Speaker 1: The Feed is attempting to cut inflation without triggering a recession,
Speaker 1: but JP Morgan Chip US economist Michael Faroli tells Bloomberg
Speaker 1: gets likely too late to achieve that goal. We are
Speaker 1: expecting the economy to slip into recession by the end
Speaker 1: of the year, just due to the lagged effects of
Speaker 1: the of the tightening and financial conditions that the Fed
Speaker 1: is engineered here, as well as the additional great height
Speaker 1: set their their signaling today. The notes also highlight the
Speaker 1: Fed's rate projections being quote notably above market expectations from
Speaker 1: a policy standpoint, Live in New York. I'm Steve Rappaport,
Speaker 1: Bloomberg daybreak. All right, Steve, thanks those conscious comments from
Speaker 1: the Federal helping fuel some caution in stocks this morning. Yesterday,
Speaker 1: both the SMP five hundred and the NASTAC one hundred
Speaker 1: snap two days of losses. Morgan stand chief US equity
Speaker 1: strategist Mike Wilson, who correctly predicted last year's dismal market,
Speaker 1: says stocks are heading even lower that we think three
Speaker 1: thousand is a very achievable number given our confidence on
Speaker 1: our earnings forecast. Ironically, I would say any absence of,
Speaker 1: you know, a recession, meaning companies decide to not off aggressively,
Speaker 1: that target looks more achievable. That may sound counterintuitive, but
Speaker 1: that's the way we're not modeling it today. So our
Speaker 1: bear case is actually kind of we avoid a recession,
Speaker 1: but not to slowdown. If Morgan Stanley chief US equity
Speaker 1: strategist Mike Wilson's prediction comes true, stocks would decline more
Speaker 1: than from current levels, and Wilson is not the only
Speaker 1: big bear on Wall Street. On this morning. Piper Sandler
Speaker 1: strategist Michael Kantrowitz, ranked number three in the last year's
Speaker 1: Institutional Investors survey, predicts the S and P five hundred
Speaker 1: will fall to just above thirty two hundred and again
Speaker 1: futures it will change. This morning, straight ahead, your latest
Speaker 1: local headlines, plus a check of sports, and this is Bloomberg.
Speaker 1: Thank you hearing its forty nine degrees in Central parkot
Speaker 1: Sympatchie Follock this morning. It's gonna stay cloudy and cooler
Speaker 1: today in the low fifties. Might see a shower tonight
Speaker 1: as we get down to the low forties in the
Speaker 1: overnight hours. Time now for a look at some of
Speaker 1: the other stories making news in New York and around
Speaker 1: the world. For that, we are joined by Bloomberg's Michael
Speaker 1: bar Good morning, Michael, Good morning, Nathan. Pope Francis delivered
Speaker 1: the homia at the funeral mass for former Pope Benedict
Speaker 1: Benedetto in Italian. Pope Francis says, Benedict, faithful friend of
Speaker 1: the bridegroom. May you enjoy be complete as you hear
Speaker 1: his voice. Mourners gathered in St. Peter Square outside the
Speaker 1: Vatican today where Benedict is being laid to rest. George
Speaker 1: Mason University professor Helen Alvary spoke about Benedict's legacy. I
Speaker 1: think he's a model of humility and modesty. He was
Speaker 1: definitely a servant of the church. He didn't want to
Speaker 1: come to Rome. He wanted to stay in Germany and
Speaker 1: remain at Theologian. He didn't want to be out of
Speaker 1: the office of Doctrine. But John Paul too really twisted
Speaker 1: his arm, and he really did not want to be pope.
Speaker 1: Ah he he thought, you know, he was not great
Speaker 1: enough for it. Benedict will be buried in the crypt
Speaker 1: under St. Peter's Basilica. President Joe Biden says he intends
Speaker 1: to visit the US Mexico Boarder next week for a
Speaker 1: firsthand look at conditions as his administration contends with surgeon migration.
Speaker 1: Biden is already scheduled to travel to Mexico next week
Speaker 1: to meet with the presidents of Mexico and Canada. President
Speaker 1: Biden's administration urged the U. S. Supreme Court to uphold
Speaker 1: his embattled student debt relief plan. The High Court is
Speaker 1: scheduled to hear arguments February. It's a war of words
Speaker 1: between New York City Mayor Eric Adams and former Mayor
Speaker 1: Bill de Blasio's administration. Adams is calling on his predecessor
Speaker 1: to stop his team from criticizing the current administration. It's
Speaker 1: not called Bill. The other day I said, Bill, what's
Speaker 1: going on? You know what's going on? And then the
Speaker 1: Bill's coms guy who's probably the roast coms guy in
Speaker 1: the History of Communication. Adams is talking about the blosil's
Speaker 1: former spokesperson Bill Ninehard, who has been increasingly critical about
Speaker 1: Dams on Twitter. Adams said they had eight years to
Speaker 1: do their job. Once they're gone, their experts on everything.
Speaker 1: Heavy rains and strong winds. At California overnight it has
Speaker 1: a powerful bomb cyclone washed ashore knocking out power storm.
Speaker 1: Is the third so called atmospheric river storm to impact
Speaker 1: California in the last two weeks. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quick Take,
Speaker 1: powered by more than journalist and analysts more than a
Speaker 1: hundred twenty countries at Michael Barr, this is Bloomberg. Nathan Okay, Michael,
Speaker 1: Thanks down Alf of the Bloomberg Sports Update, brought to
Speaker 1: you by Tri State Audi. Good morning, John, Sasha, Good
Speaker 1: morning Nathan. The next lost to the lowly Spurs a
Speaker 1: week ago in San Antonio. Jelly runs and didn't play
Speaker 1: that game. He did play last night at the Guard
Speaker 1: and he scored thirty eight points, career high in the
Speaker 1: regular season. Nicks pulled out the win one seventeen one fourteen.
Speaker 1: The Spurs were coming off at thirty six point loss
Speaker 1: in Brooklyn. The Nets brought that twelve game winning strengt
Speaker 1: to Chicago. It ended the Bulls won one twelve despite
Speaker 1: forty four points by Kevin durand the Nets first loss
Speaker 1: in a month. Devil's won five one at Detroit. They're
Speaker 1: back home tonight. Road games tonight for the Rangers and Islanders.
Speaker 1: Fordam lost a tight one at Rhode Island eight two
Speaker 1: seventy nine, and the Big East Providence beat Yukon. The
Speaker 1: Huskies were fourteen now they've lost their last two. Georgetown,
Speaker 1: with a home loss to Villanova, has now lost twenty
Speaker 1: five consecutive Big East games under coach Patrick Ewing. Red
Speaker 1: Sox having allowed shortstov Xander Bogart's has become a free agent,
Speaker 1: losing him to San Diego, holding on to all star
Speaker 1: third baseman Raphael Dever's new contract eleven years, three hundred
Speaker 1: and thirty one million. The Jets closed after season Sunday
Speaker 1: in Miami. It seems as if every press conference for
Speaker 1: Jets coach Robert Salah is a discussion of where things
Speaker 1: stand with the bench quarterback Zach Wilson. Zack has got
Speaker 1: all the talent in the world, and we have all
Speaker 1: the confidence in the world. And and and it's just like
Speaker 1: I said, from this reset, and we're gonna we're gonna
Speaker 1: grind with him. We are and uh and through hell
Speaker 1: Ohio water. We're going to figure out how to how
Speaker 1: to get into what we know he can do. Mike
Speaker 1: White will be Stalla's starter. On Sunday, the Dolphins are
Speaker 1: likely to start rookie QB. Skyler Thompson Miami, who liked
Speaker 1: the Jets, has lost five and Row can still make
Speaker 1: the playoffs with a win and a New England lost
Speaker 1: in Buffalo. John Stash, Now we're Bloomberg Sports. Nathan, all right, John,
Speaker 1: thank you. In the Bloomberg Sports Report was brought to
Speaker 1: you by Audie. Don't let someone else drive off in
Speaker 1: the Audi model you've always wanted. Visit your local Tri
Speaker 1: state Audie dealer to get behind the wheel of yours today,
Speaker 1: or visit Autie Offers dot com for more information. Coming up,
Speaker 1: we'll look at what could break the standoff on Capitol
Speaker 1: Hill for House leader Kevin McCarthy. First futures are trading flat,
Speaker 1: SMP futures right now down to point, DOW futures down
Speaker 1: eighteen and NASDAC futures a lower by eight points ten.
Speaker 1: Your treasury is down seven thirty seconds. The yield on
Speaker 1: the benchmark three point seven. Live from coast to coast,
Speaker 1: from New York to San Francisco, Boston to Washington, d C.
Speaker 1: Nationwide on Sirius Examp, the Bloomberg Business app, and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar,
Speaker 1: and the focus this morning once again remains on Washington,
Speaker 1: d C. The stair down continues between House Republican leader
Speaker 1: Kevin McCarthy and those twenty and now twenty or so
Speaker 1: GOP members who seemed determined to block McCarthy's bid to
Speaker 1: become the next Speaker of the House. Terry Haynes is
Speaker 1: with us this morning now, the founder of Pangea Policy. Terry,
Speaker 1: Good morning. I know we've talked before many times about
Speaker 1: the four factions you see in Washington, d C and
Speaker 1: the two party system, and we're certainly seeing two of
Speaker 1: those factions butt heads this week. What's it gonna take
Speaker 1: for Republicans to get along? Good morning, Nathan, Happy new year,
Speaker 1: and everybody on the program, Thanks for and thank you
Speaker 1: for remembering the four factions so very important. The what's
Speaker 1: that gonna take? Uh? You know, I don't see this
Speaker 1: as as close to ending as we begin today. I'll
Speaker 1: tell you for two reasons. One is kind of a
Speaker 1: lucy in the football program. Uh, the twenty or so dissidence. Uh.
Speaker 1: Uh have a bunch of demands. The demands constantly shift. Uh.
Speaker 1: You can't get to the end of the demands. So
Speaker 1: that's number one. Number two is what I think of
Speaker 1: as a super size problem. What they continue to want
Speaker 1: to what they talk about is, you know, kind of
Speaker 1: the lack of what i'll call kind of conservative focus
Speaker 1: off in the in the broader Republican conference on lots
Speaker 1: of different issues, spending issues, cultural issues, all kinds of
Speaker 1: other things. And what they really say they want when
Speaker 1: it comes down to it, is outside and outside influence
Speaker 1: on policy, on committees, on you know, kind of the
Speaker 1: levers that make things work. That's not an attack on McCarthy,
Speaker 1: that's an attack on the entire conference. In other words,
Speaker 1: they're directly attacking the other, their fellow members who who
Speaker 1: think that, you know, things can be worked out the
Speaker 1: way they are. Uh. So, you know, I don't see
Speaker 1: this as uh as as ending real soon. Um, you
Speaker 1: know there. You know, I think they're into backing themselves
Speaker 1: into the corner because what they're doing with their of
Speaker 1: the conference that they need in order to help make
Speaker 1: a deal is make is make the case that if
Speaker 1: we give in, then the House becomes ungovernable. So, you know,
Speaker 1: I think this is going to take a while, and
Speaker 1: I think increasingly what what folks ought to do is
Speaker 1: be looking past McCarthy and towards either a more consensus
Speaker 1: conservative or a more consensus centrist within the on the
Speaker 1: Republican side. Well, even if there is a consensus to
Speaker 1: come forward, Terry, would a consensus candidate be able to
Speaker 1: meet the demands that those twenty Republicans have? I mean,
Speaker 1: does it make a difference whether they're making the demands
Speaker 1: of McCarthy or anybody else. Yeah, well, a very good question.
Speaker 1: And part of the reason I think this is going
Speaker 1: to take a while is because I think the what
Speaker 1: the conference is is coming to the conclusion, uh, is
Speaker 1: that is that, you know, we just can't continue to
Speaker 1: to focus on the drift drift drip here. These fits
Speaker 1: never gonna be enough for these folks, uh. And what
Speaker 1: I think is gonna end up happening is if you
Speaker 1: end up with somebody other than McCarthy. Because it's very
Speaker 1: clear this isn't really about all the the rearranging the
Speaker 1: deck chairs on the Titanic stuff. This is a personal
Speaker 1: vendetta against McCarthy. Uh. If McCarthy goes away, a lot
Speaker 1: of these issues, a lot of these problems go away. So, uh,
Speaker 1: there's one reason why I think increasingly the Republican Conference
Speaker 1: is gonna look look to somebody else to be the
Speaker 1: speaker in this Congress. So are you saying that they're
Speaker 1: gonna just gonna drop their demands if McCarthy steps aside?
Speaker 1: But yeah, I think a lot of the problems will
Speaker 1: be considered to go away if there's another personality in
Speaker 1: the speaker's chair. Yes, Okay, what what is the possibility
Speaker 1: that we could see some kind of deal made with Democrats?
Speaker 1: I mean that's something that McCarthy had warned could be
Speaker 1: a scenario if this continues to play out. Could we
Speaker 1: could we see a situation where we have some kind
Speaker 1: of I guess American version of a coalition government come
Speaker 1: forward in Congress. Yeah, it's a very smart question. I
Speaker 1: think you know you you played a clip from former
Speaker 1: Congressman Tim Romer, very savvy former Democrats from Indiana. UH,
Speaker 1: and Tim Tim's point was very simple that you know,
Speaker 1: there's actually no incentive for Democrats don't want to work
Speaker 1: on this. Number one UH Number two UH. I know
Speaker 1: what's one thing that's getting play at least on on
Speaker 1: the Bloomberg site is a proposal by for a current
Speaker 1: Congressman Brad Sherman of California that they could probably work
Speaker 1: with UH with Republicans if they'd agree to UH TO
Speaker 1: and increase the debt ceiling deal on spending, you know,
Speaker 1: not shut the government down that sort of thing. UH.
Speaker 1: Congressman Sherman is always a bit of a freelancer, so
Speaker 1: I wouldn't take this as it wouldn't take his view
Speaker 1: as some sort of official Democratic position at all. Secondly, UM,
Speaker 1: you know that doesn't work with the vast majority of
Speaker 1: the conference. The idea that they give up effective control
Speaker 1: on spending in debt limit UH is something that the
Speaker 1: Republicans wouldn't accept. So that's a nonstarter, all right. Terry Haynes,
Speaker 1: founder of Pangia Policy. We'll see how things unfold today
Speaker 1: as we get ready for round seven voting for the
Speaker 1: next Speaker of the House. As we've been saying all week,
Speaker 1: it's been a hundred years since we've been in a
Speaker 1: position like this, and it continues to unfold. In Washington,
Speaker 1: d C. Terry Haynes, founder of Pangia Policy, with us
Speaker 1: this morning. Future is flat. SMP futures little changed to
Speaker 1: the upside down. Futures down three points, NAZAC futures down
Speaker 1: one point. This Bloomberg Markets Headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business and at Bloomberg Quicktake. She's a Bloomberg Business Flash
Speaker 1: and I'm Karen Moscow US not Index. Futures are little
Speaker 1: change this morning. As investors balanced further signs of China's
Speaker 1: reopening with conscious commentary from the Federal Reserve's latest meeting.
Speaker 1: European shares paired their declines with the report showing Euro
Speaker 1: Area producer prices film more than expected in November. We
Speaker 1: checked the markets all day long here on Bloomberg again,
Speaker 1: futures are little change. The ten year treasury down six
Speaker 1: thirty seconds. He had three point seven zero percent, and
Speaker 1: they yield in the two year four point three eight percent.
Speaker 1: And that's a Bloomberg Business Flash. Now, here's Michael Barr
Speaker 1: with Moore on what's going on around the world. Uncle,
Speaker 1: good morning, Good morning, Karen. The U S House will
Speaker 1: resume session later today after Kevin McCarthy and GOP dissidents
Speaker 1: failed to reach a deal on the California Republicans bid
Speaker 1: to become speaker. Today is day three of the standoff
Speaker 1: between McCarthy and twenty colleagues withholding the support he needs
Speaker 1: for the job. Six votes have failed to elect a speaker.
Speaker 1: Pulpe frances is honoring his predecessor, Benedict. St. Francis is
Speaker 1: presiding over a mass for Benedict before thousands of mourners
Speaker 1: in St. Peter's Square in the NBA. The next one,
Speaker 1: the Nets and Warriors lost in hockey. The Devil's won.
Speaker 1: Global news twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalists and analysts, are more than a hundred twenty countries.
Speaker 1: Michael Barn, this is Bloomberg, Nathan. Thanks Michael. It's five
Speaker 1: twenty three on Wall Street. I'm Nathan Hagar. This is
Speaker 1: Bloomberg Daybreak. We're watching shares of Amazon this morning, they
Speaker 1: have two and a half percent in the pre market
Speaker 1: on we're now confirmed from CEO Andy Jesse that the
Speaker 1: e commerce giant will lay off more than eighteen thousand employees.
Speaker 1: That's nearly twice as many as previously expected. Potential signed
Speaker 1: the tech industry slump maybe getting worse. Joining us now
Speaker 1: for more on this is a quick take. Corres Fund
Speaker 1: and Alex Webb Alex so, we knew Amazon was tightening
Speaker 1: its belt. Should this even bigger round of job cuts
Speaker 1: come as a surprise for investors? Well, it clearly has
Speaker 1: come as a bit of a surprise, given the share reaction.
Speaker 1: They had telegraphed that would have been reported there was
Speaker 1: going to be something in the order of ten thousand
Speaker 1: DROB cuts, so it's almost double that. Let's not forget though,
Speaker 1: that you know, Amazon has in the order of one
Speaker 1: and a half million employees globally. It added between twenty
Speaker 1: two a million additional head count that's equivalent to the
Speaker 1: entire U S Army, So you know, compared to that,
Speaker 1: eighteen thousand is still a relatively small percentage to people
Speaker 1: being affected by the job cuts. It's not small deal
Speaker 1: for them, but it means that the share price reaction
Speaker 1: two and a half percent when it's eight thousand of
Speaker 1: the one and a half one a half million, seems
Speaker 1: maybe a little bit overplayed. Don't forget, of course, they're
Speaker 1: also talking about some real estate pair backs. Amazon's expansion
Speaker 1: during the lockdowns wasn't just headcount. They also added a
Speaker 1: huge amount of warehousing, and the general consensus being that
Speaker 1: they expanded too quickly. Now so it seems as though
Speaker 1: this is just a reshuffle of sort of a return
Speaker 1: back to a pre pandemic sort of normal for Amazon.
Speaker 1: Is that how we should be looking at it. That's
Speaker 1: half of it. Look, what happened was with that expansion
Speaker 1: is if you look at the revenue per employee, so
Speaker 1: you average out the total revenue by the total head count,
Speaker 1: revenue per employee had actually declined over the past few years,
Speaker 1: which kind of shows how they had expanded too quickly.
Speaker 1: But don't forget. We also then have the broader interest
Speaker 1: rate story, which has helped bring the Amazon share price down.
Speaker 1: It's lost trillion dollars in market cap over the past
Speaker 1: few months. That means that management probably feels the need
Speaker 1: to do something. It's not entirely Amazon's fault that partly
Speaker 1: to do with the recovery post pandemic, but it's also
Speaker 1: to do with, you know, investors being able to find
Speaker 1: good returns or more reliable returns elsewhere. So you look
Speaker 1: at those two factors, the operational impact and then the
Speaker 1: broader stock market performance, and management probably then feels on
Speaker 1: the one had the need to do something, but also
Speaker 1: the opportunity to right size what they would see as
Speaker 1: right sizing their business because you know, they kind of
Speaker 1: have the air cover to do it. Yeah, good point
Speaker 1: about the FED picture as well, but it's coming out
Speaker 1: on the heels this this confirmed news from Amazon of
Speaker 1: Salesforce announcing a ten percent staff layoff. What is that
Speaker 1: to say about the tech sector overall, Well, let's let's
Speaker 1: not forget that a lot of these companies, what we
Speaker 1: call the tech sector, they are enabling up businesses in
Speaker 1: other sectors. And Salesforce, you know, a lot of that
Speaker 1: is sort of the advertising business, right and advertising is,
Speaker 1: as we know, something that gets hit hard by economic slowdowns.
Speaker 1: The first thing that companies tend to slash from their budgets.
Speaker 1: Online sales, of course have been growing, and Salesforce is
Speaker 1: a company that enables that. Um But the pace of
Speaker 1: that growth has slowed down a bit, so you know,
Speaker 1: we're seeing salesforce h you know, probably pre emptying some
Speaker 1: of the some of the broader impacts on its business
Speaker 1: and and trying to get ahead of these effects. All right,
Speaker 1: Alex Web Bloomberg Quick Take correspondent with us this morning
Speaker 1: to talk all things tech once again, and on the
Speaker 1: word official now from CEO Andy Jesse that Amazon will
Speaker 1: be laying off more than eighteen thousand of its more
Speaker 1: than million plus workforce. The shares this morning are higher
Speaker 1: by two and a half percent in the pre market.
Speaker 1: The futures as a whole are trading flat. SMP futures
Speaker 1: little changed, uh DAL futures are down three points, Nasdaq
Speaker 1: futures little changed to the downside as well. Ten Your
Speaker 1: treasury is down five thirty seconds, yield three point seven
Speaker 1: zero percent, and the yield on the two year right
Speaker 1: now is at four point three eight percent. Coming out next,
Speaker 1: your top stories of the morning, local headlines, and a
Speaker 1: fuller check of markets. First, we check in with Rob
Speaker 1: Carolin for today's Bloomberg weather forecast. So, Mary's apache fog
Speaker 1: around the Tristate area this morning looks like kind of
Speaker 1: a cloudy day, shaping up once the fog lifts fifty
Speaker 1: to fifty five. Today, clouds night may be a straight
Speaker 1: shower of forty to forty five. It will turn partly
Speaker 1: sunny in cooler Tomorrow, highs forty five to fifty. Saturday
Speaker 1: partial sun near forty five. Sunday looks partly sunny as well.
Speaker 1: Highest there will be around forty degrees. I'm Rob Carolyn
Speaker 1: with your weekend forecast. I'm Bloomberg eleven three oh broadcasting
Speaker 1: ve from the Bloomberg Interactive Broker Studio in New York,
Speaker 1: Bloomberg Elving three to Washington, d C. Bloomberg ninety nine
Speaker 1: one to Boston, Bloomberg on six. What does San Francisco
Speaker 1: Bloomberg nomes sixty to the country Sirius XM ch A
Speaker 1: one nineteen and around the globe the Bloomberg Business apt
Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak, and
Speaker 1: we're coming up to five thirty on Wall Street. Good morning.
Speaker 1: I'm caerin Moscow, and I'm Nathan Hagar. Bloomberg Daybreak is
Speaker 1: brought to you by Innovation Refunds that small business is
Speaker 1: impacted by the COVID nineteen pandemic may qualify for the
Speaker 1: Employee Retention Credit Let Innovation Refunds. Do the work to
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Speaker 1: dot com. And we're nearly four hours away from the
Speaker 1: open of US trading. Let's get you up to date
Speaker 1: on the news you need to know at this hour.
Speaker 1: We begin with the political turmoil in Washington. The House
Speaker 1: has adjourned once again after six rounds of voting without
Speaker 1: electing a speaker. Twenty Conservatives are blocking Kevin McCarthy's path
Speaker 1: to this speakership. Now, the standoff is drawing negative attention
Speaker 1: from President Biden. It's embarrassing for the country, I mean
Speaker 1: literally making a part of their reality. And President Biden
Speaker 1: says that GOP does function is not a good look
Speaker 1: to the rest of the world. Lawmakers reconvene at noon
Speaker 1: today for a seventh round of votes. Ahead of that,
Speaker 1: Karen dissenting republic Kins don't appear to have a specific
Speaker 1: candidate in mind for the speakership. That's according to former
Speaker 1: Indiana Democratic Congressman Tim Romer. He tells this gop TO
Speaker 1: centers just want to oppose McCarthy. These four or five
Speaker 1: or twenty We'll see this as a real victory, just
Speaker 1: taking McCarthy down. Former Congressman Tim Rohmer spoke on Bloomberg
Speaker 1: Sound On with Joe Matthew. You can catch a weekday's
Speaker 1: five pm Eastern on Bloomberg Radio. Well, another major story
Speaker 1: we're following this morning, Nathan, involves those job cuts at Amazon.
Speaker 1: The company plans to eliminate just over eighteen thousand roles,
Speaker 1: more than was initially announced in November. Most of the
Speaker 1: const will come in Amazon's retail division and human resources department.
Speaker 1: As for the broader economy, Karen, all eyes are on
Speaker 1: the Fed and the Central Bank is affirming its resolve
Speaker 1: to bring down inflation. At Bloomberg, Steve Rappaport joins us Live.
Speaker 1: Good morning, Steve, you, good morning, Nathan and Karen. Despite
Speaker 1: that resolve, policymakers say they're not afraid to keep interest
Speaker 1: rates high, at least in the short term. Minutes from
Speaker 1: their last meeting, note in unwarranted easing and financial conditions,
Speaker 1: especially if driven by a misperception by the public of
Speaker 1: the comittee's reaction function would complicate efforts to restore price stability.
Speaker 1: The Central Bank's goal is to eventually bring down inflation
Speaker 1: by two percent or to two percent, while keeping the
Speaker 1: economy out of a recession. Live in New York Time,
Speaker 1: Steve Rapp Report Bloomberg Daybreak, Great Steve, thank you. While
Speaker 1: the SNP and NASDACS shook off fed caution yesterday, snapping
Speaker 1: two days of losses. But Morgan Stanley chief US equity
Speaker 1: strategist Mike Wilson says, with earnings around the corner, investors
Speaker 1: need to gear up for rough days ahead. We're gonna
Speaker 1: get a nasty earnings recession, and so the companies that
Speaker 1: can deliver on the cost deficiency are the ones that
Speaker 1: are going to continue to perform until you fully price
Speaker 1: you know, whatever this downturn on earnings are going to be.
Speaker 1: And Morgan Stanley's Mike Wilson thanks, stocks could decline more
Speaker 1: than twenty percent from current levels. Again, futurists this morning,
Speaker 1: they are little changed. The ten year treasury down six
Speaker 1: thirties seconds, you know, three point seven zero percent yield
Speaker 1: on the two year four point three eight percent, straight ahead,
Speaker 1: your latest local headlines, plus a check of sports, and
Speaker 1: this is Bloomberg. Thanks Karen. It's high thirty one on
Speaker 1: Wall Street and Michael Barr has those New York headlines
Speaker 1: and look at what's going on around the world as well.
Speaker 1: Good morning Michael, Good morning Nathan. Mourners poured into St.
Speaker 1: Peter Square for the funeral of former press a, former Pope,
Speaker 1: Benedict Bell's told and the crowd applauded as Paul bearers
Speaker 1: carried Benedict's cypress coffin out of the basilica and rested
Speaker 1: it before the altar. Helena Alvary is a George Mason
Speaker 1: University professor. He's going to be remembered as one of
Speaker 1: the greatest intellects in the history of the church, which
Speaker 1: is saying something in two thousand years. Uh. He is
Speaker 1: going to be the person who pursued all the great
Speaker 1: questions in you know, more than sixty five books and
Speaker 1: probably hundreds of articles. Heads of state, royalty and clergy
Speaker 1: from around the world flocked to the Vannikan. It is
Speaker 1: a war of words between New York City Mayor Eric
Speaker 1: Adams and former Mayor Bill de Blasio's administration. Adams is
Speaker 1: calling on his predace ester to stop his team from
Speaker 1: criticizing the current administration. I am so tied of the
Speaker 1: previous administration and the antics, Adams slammed de Blasil's former spokesperson,
Speaker 1: who has been increasingly critical of Adams on Twitter. Adams
Speaker 1: said they had eight years to do their job. Once
Speaker 1: they're gone, their experts on everything. President Joe Biden says
Speaker 1: he intends to visit the US Mexico Board next week
Speaker 1: for a firsthand look at the conditions as his administration
Speaker 1: contends with a surge in migration. President Joe Biden said
Speaker 1: he is considering sending Ukraine American Bradley fighting vehicles to
Speaker 1: aid the country's defense against Russia's invasion. That Bradley is
Speaker 1: an armored vehicle capable of transporting soldiers to the front
Speaker 1: lines while attacking targets with cannon and anti tank missiles.
Speaker 1: Rick Singer, the mastermind of the nationwide college admissions bribery
Speaker 1: scheme that instead celebrities and prominent people, was sentenced the
Speaker 1: three and a half years in prison. Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quick
Speaker 1: Take word by more than twenty seven hundred journalists analysts
Speaker 1: more than a hundred twenty countries. I'm Michael bar this
Speaker 1: is Bloomberg. Nathan all right, Michael, thanks three on Wall
Speaker 1: Street time for the Bloomberg Sports update. Front you by
Speaker 1: tri State out of yours, John stet Show, Thanks Nathan
Speaker 1: san Antonio. Spurs came to New York, lost by thirty
Speaker 1: six at Brooklyn, much closer at the Garden. Spurs had
Speaker 1: a chance to tie the game at the end, but
Speaker 1: the Knicks held on one seventeen one fourteen. Jalen Brunson
Speaker 1: scored thirty eight. Knicks played tomorrow in Toronto. The next
Speaker 1: twelve game win streak ended at Chicago, the Bulls on twelve.
Speaker 1: In the lost, Kevin Rant forty four points, Kyrie every
Speaker 1: had five, Seth Curry two. The rest of the team
Speaker 1: combined for only twenty one. Donovan Mitchell's first game since
Speaker 1: he scored seventy one points held at twenty, but the
Speaker 1: Cavs beat Phoenix. Jana's son to the Comfort was coming
Speaker 1: off a Queer high fifty five points, settled for thirty
Speaker 1: at twenty one rebounds. Tennis has Milwaukee waned Toronto. Lakers
Speaker 1: played with Lebron without Lebron James, who was out sick.
Speaker 1: They still beat in Miami and Detroit hit a shot
Speaker 1: at the buzzer for an upset when at Golden State,
Speaker 1: who would only lost twice all year at home, Devil's
Speaker 1: a five one win at Detroit tomorrow. Hamlet said to
Speaker 1: be showing signs of improvement from this cardiac arrest one
Speaker 1: day in Cincinnati. Quarterback news going to week eighteen, Washington
Speaker 1: will have its third different QB in three weeks, now
Speaker 1: going to rookie Sam Howell. Chicago starts Nathan Peterman for
Speaker 1: the injured Justin Fields, who was trying to set the
Speaker 1: record for most rushing yards by a QB. Miami will
Speaker 1: likely start rookie Skyler Thompson against the Jets. Not known
Speaker 1: yet of Jalen Hurtful return from injury for Philadelphia. The
Speaker 1: Eagles hosted giant Jim Harbaugh Spolk with the Carolina Panthers,
Speaker 1: but said he expects to remain as the coach at Michigan.
Speaker 1: John Stasheller Bloomberg Sports. All right, John, thank you for that,
Speaker 1: and the Bloomberg Sports Report was brought to you by Audie.
Speaker 1: Don't let someone else drive off in the Audi model
Speaker 1: you've always wanted. Visit your local Tri State Audie dealer
Speaker 1: to get behind the wheel of yours today, or visit
Speaker 1: Audie Offers dot com for more information on Wall Street.
Speaker 1: Time for the Tri State Business Report with Bloomberg's ed Corey.
Speaker 1: Rupert Murdoch's Media Empire is recommitting to Manhattan office space
Speaker 1: after News Corps and Fox signed leases that will keep
Speaker 1: the companies in Midtown for another twenty years. New York
Speaker 1: City will begin to replace nearly nine hundred twenty five
Speaker 1: of its fleet vehicles with electric ones thanks to a
Speaker 1: ten million dollar federal grant. The funds will be used
Speaker 1: to buy three hundred eighty two Chevy Bolts, three hundred
Speaker 1: sixty Ford transit vans, and one hundred fifty Ford F
Speaker 1: one fifty E lightning pickups. The Department of Sanitation will
Speaker 1: get twenty five hybrid street sweepers. New Jersey has extended
Speaker 1: its health benefits contract with Horizon Blue Cross Blue Shield
Speaker 1: for another year, even after the state officials alleged the
Speaker 1: health insurer failed to meet terms of the deal. The
Speaker 1: state will pay lower fees in exchange for reducing the
Speaker 1: scope of some services. Horizon was originally hired to provide
Speaker 1: that your Bloomberg dry fake business report. I did Corey alright,
Speaker 1: thank you? It is five on Wall Street. The following
Speaker 1: is an editorial from Bloomberg Opinion. This editorial was written
Speaker 1: by the Bloomberg Editorial Board. Starting this week, travelers on
Speaker 1: US bound flights from China will have to be tested
Speaker 1: for COVID nineteen. Other countries are implementing similar new restrictions.
Speaker 1: Given the scale of the outbreak currently ravaging China, such
Speaker 1: moves make sense, but on their own they aren't enough
Speaker 1: to manage the global risk posed by the virus. The US,
Speaker 1: for its part, should maintain its efforts to supply China
Speaker 1: with more potent mr NA vaccines. It should also lead
Speaker 1: a swift, coordinated global effort to boost genetic sequencing, which
Speaker 1: can help track variants. Critics of testing before travel are right.
Speaker 1: It won't prevent all transmission, but combined with common sense precautions,
Speaker 1: better surveillance, and more vaccines, it should help keep the
Speaker 1: worst effects of the virus at bay. This editorial was
Speaker 1: written by the Bloomberg Editorial Board. For more Bloomberg Opinion,
Speaker 1: please go to Blue Bomberg dot com, slash Opinion or
Speaker 1: OPI and go on the Bloomberg terminal. This has been
Speaker 1: Bloomberg Opinion, and you can hear Bloomberg opinion editorials every weekday.
Speaker 1: At this time, terminal customers can read more at O,
Speaker 1: P I N GO. Now, another story we're following this morning.
Speaker 1: Dell reportedly wants to phase out semiconductors made in China
Speaker 1: by four according to Japan's NIEK news service. The computer
Speaker 1: maker is also telling its suppliers to significantly reduce the
Speaker 1: amount of other components produced in China. Delt reportedly wants
Speaker 1: to diversify its supply chain because of concerns about US
Speaker 1: China tensions. S ANDP futures right now are highed by
Speaker 1: one point, Dow futures are down one point, and NASAC
Speaker 1: futures are higher by six points. Now send your treasury
Speaker 1: is down five thirty seconds. Heal three point seven zero
Speaker 1: percent yield on the two year four point three eight percent.
Speaker 1: Stay with us, We'll get an outlook on this market
Speaker 1: from Eric Friedman of US Bank Asset Management. He joins
Speaker 1: us shortly. This is Bloomberg Markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com. Of
Speaker 1: Bloomberg Business at and at Bloomberg Quick Take, this is
Speaker 1: a Bloomberg Business lash and I'm Karen. Moscow futures this
Speaker 1: morning they're little changed to higher SNP futures and down
Speaker 1: future is both pretty much little change. NaSTA Future is
Speaker 1: up a tenth of a percent, about eleven points right now.
Speaker 1: The decks in Germany is down about a tenth of
Speaker 1: uppercent ten year treasury down five thirties seconds. You have
Speaker 1: three point seven zero percent yield on the two year
Speaker 1: four point three eight percent. Nine X for oil is
Speaker 1: up two point seven percent of a dollar ninety six
Speaker 1: at seventy four dollars eighties cents of barrel comes golled
Speaker 1: down two tenths of a percent, or three dollars thirty
Speaker 1: cents at eighteen fifty five seventy announced the euro one
Speaker 1: point six one eight against the dollar. British found one
Speaker 1: point two zero to seven the one thirty two point
Speaker 1: four five and bitcoin this morning it's little change. It's
Speaker 1: had about sixteen thousand, eight hundred dollars. As a Bloomberg
Speaker 1: Business flash, how here's Michael Barr with more on les's
Speaker 1: going on around the world. Michael, Karen, thank you very much.
Speaker 1: The House of Representatives will try now for a third
Speaker 1: day to lock in a speaker. Disagreements among Republicans lad
Speaker 1: to Kevin McCarthy, losing now a total of six ballots.
Speaker 1: Pope Frances is honoring his predecessor, Benedict sixteenth. Frances is
Speaker 1: presiding over a mass for Benedict before thousands of mourners
Speaker 1: in St. Peter's Square. Officials in California ordered evacuations in
Speaker 1: high risk coastal areas as a huge storm barreled into
Speaker 1: the state. It is bringing high winds and rain that
Speaker 1: threatened widespread flooding and knocked out power to more than
Speaker 1: a hundred thousand people in the NBA. The next one
Speaker 1: the Nets and Warriors lost in hockey. The Devil's One
Speaker 1: Global news twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Tank, powered by more than twenty seven
Speaker 1: hundred journalists and analysts more than a hundred twenty countries.
Speaker 1: Michael bar this is Bloomberg. Nathan, Okay, Michael, thank you.
Speaker 1: We're coming up to forty two on Wall Street. This
Speaker 1: is Bloomberg Daybreak. I'm Nathan Hagar along with Karen Moscow.
Speaker 1: Let's take a look at some of the other stories
Speaker 1: we're watching this morning. Strikes on the British rail network
Speaker 1: reach a critical peak today. Some of London's biggest rail
Speaker 1: stations will be closed, while some airports will also be
Speaker 1: deprived of train service. Union train drivers are walking out
Speaker 1: following a long dispute over pay go back. Here in
Speaker 1: the US, Nathan, the labor market is also front and center,
Speaker 1: but this time a focus on jobs. Payroll Process or
Speaker 1: a DP, issues its employment report for December this morning.
Speaker 1: Economists are predicting a gain of around one hundred fifty thousand,
Speaker 1: and Bloomberg's Minnie down Judas has more. November's ADP data
Speaker 1: showed the gain of one hundred twenty seven thousand jobs,
Speaker 1: the weakest showing since January. Some industries, notorably technology and finance,
Speaker 1: are cutting jobs, are freezing hiring, and yet is Bloomberg
Speaker 1: Economics notes almost half of small businesses report difficulty finding
Speaker 1: qualified workers. The government issues official employment data Friday, and
Speaker 1: economists anticipate a modest showing in that report as well.
Speaker 1: Beneath Dealt, Jude I Sploomberg Daybreak Alright, thanks Manny, turning
Speaker 1: to corporate news now. Yesterday's equity session saw shares a
Speaker 1: Jeffrey's Financial Group jump thirteen percent. That comes after a
Speaker 1: report that Japan's Sumitomo Mitsui Financial Group is considering raising
Speaker 1: its steak in the US investment bank. That story now
Speaker 1: from Bloomberg's Charlie Pellett. Summatomo's CEO says he hopes to
Speaker 1: make Jeffreys an equity method affiliate, and that could involve
Speaker 1: an interest of twenty to fifty percent, according to Nikai,
Speaker 1: The CEO did not say when his firm might make
Speaker 1: an additional investment, and indicated that such decisions would come
Speaker 1: once his company holds discussions with New York based Jeffreys
Speaker 1: and US regulators. The Japanese company already has a stake
Speaker 1: of almost five percent in Jeffrey's, part of a strategic
Speaker 1: alliance reached last year in New York. Charlie Pellett Bloomberg Daybreak.
Speaker 1: All right, Charlie, thank you well. One of Wall Street's
Speaker 1: top bears. He's another down year for the stock market.
Speaker 1: Piper Sandler strategist Michael Kantrowitz ranked number three, and the
Speaker 1: last year's Institutional Investors survey predicts that the S and
Speaker 1: P five hundred bill fall this year to a level
Speaker 1: just above the price target is the lowest among Wall
Speaker 1: Street analyst track by Bloomberg. Should that come true, it
Speaker 1: will be only the fifth time in nearly a century
Speaker 1: that the benchmark index suffered at two consecutive years of
Speaker 1: double digit declines. Let sets us up very nicely for
Speaker 1: the conversation we're about to have right now with Eric Friedman,
Speaker 1: chief investment officer at US Bank Asset Management. Ericod Mourning.
Speaker 1: It's nice to speak with you as the SMP five
Speaker 1: hundred sits around a thirty eight hundred fifty level right now,
Speaker 1: but we do keep hearing the Breyers roar should the
Speaker 1: bear case be the base case for this market? Nathan,
Speaker 1: good morning, and to be with you, we do think
Speaker 1: that downsize is the more likely outcome. Let's go over
Speaker 1: the next three to four months. And and so the
Speaker 1: really rationale behind that we think you're hearing across the
Speaker 1: street is number one, unconcerned about earn investimates, the need
Speaker 1: for those to come down, and then secondly just the
Speaker 1: persistency of of inflation and the and they likely that
Speaker 1: we'll see interest rates probably remain a bit higher. I
Speaker 1: think that one of the big reconciliations that has to happen.
Speaker 1: Is the Fed's view on rates and the markets view
Speaker 1: on rates really diverge right now, Nathan. That's something that
Speaker 1: does cause us a little bit of anxiety of the
Speaker 1: next couple of months. Yeah, I guess we're kind of
Speaker 1: seeing that play out with the action and the futures
Speaker 1: this morning. Kind of a note of caution coming off
Speaker 1: the back of the FED minutes yesterday and that warning
Speaker 1: about unwarranted easing of financial conditions potentially causing the FED
Speaker 1: to act here. Does that change your case on what
Speaker 1: the FEDS policy path is going to be over the
Speaker 1: next few months. Yeah, we that that reconciliation that has
Speaker 1: to happen, and really centers around the idea that the
Speaker 1: FED will likely stay more hawkished for longer. And if
Speaker 1: you look at the divergence in in FED futures in
Speaker 1: terms of what the Fed has said and then what
Speaker 1: the market has said, there's about a percent difference between
Speaker 1: now the next year, and that's that's material. Doesn't sound
Speaker 1: like a lot, but if you look at the levels
Speaker 1: of concerns in sort of just discounting future earnings, when
Speaker 1: you have a percent difference in the FED says, Look,
Speaker 1: we think race will be higher. The market says, no,
Speaker 1: we actually think there'll be a bit lower. That's that's
Speaker 1: where we We do think that more information the FED,
Speaker 1: both in terms of their upcoming meeting in February as
Speaker 1: well as more of the speaker series that will start
Speaker 1: hearing more about we do think there's a chance to
Speaker 1: the FED reinforces this idea of longer, of higher rates
Speaker 1: for longer. You said that you think there's gonna be
Speaker 1: more downside over the next few months. Let you find
Speaker 1: you down a little bit on that. How much more
Speaker 1: downside do you think there's gonna be And does that
Speaker 1: imply that you think stocks are going to bounce back
Speaker 1: either there the second quarter or the second half of
Speaker 1: this year. Yeah, we know. We we've put the downside
Speaker 1: risk levels. You know, we do think that the possibility
Speaker 1: of retesting where we came out and the lows of
Speaker 1: of last year is it is probably a likely battleground,
Speaker 1: if you will, So let's call it SMBT hundred as
Speaker 1: a key level. The fact that we couldn't Nathan reach
Speaker 1: thirty nine hundred earlier in the week, we think is
Speaker 1: is something to pay attention to. That's of course, where
Speaker 1: a couple of big moving averages converged. So we do
Speaker 1: think that that, you know, a test of that sub
Speaker 1: thirty level is something that market will is going to
Speaker 1: happen to deal with. Now, we do expect there to
Speaker 1: be a more shallow economic recession, and so our viewpoint,
Speaker 1: our base case right now is that we likely have
Speaker 1: a lower trop of activity. But we do think that
Speaker 1: the duration of that trap, in other words, not so
Speaker 1: much the Y axis but the X acts, which really
Speaker 1: how long that trop lasts, will be key. So we
Speaker 1: do think that that the back half of the year
Speaker 1: isn't going to magically get better, but we do think
Speaker 1: that there's going to be a shallow uh, a shallow
Speaker 1: down that's gonna allow companies that probably recalibrate, And we
Speaker 1: think that the tail this year, in the early part
Speaker 1: of will be a better opportunity for particularly technology and
Speaker 1: some of the longer duration, longer earning cycle types of those.
Speaker 1: All right, you mentioned technology, Do you see any other
Speaker 1: pockets for opportunity on that path into four where we
Speaker 1: could see some upside. We've got about a minute left here,
Speaker 1: Eric Nathon, Probably the playbook for us would be to
Speaker 1: focus on cash flows first, So we like utilities, We
Speaker 1: like infrastructure. We think that energy slad a decent fundamental
Speaker 1: case as well. That's the playbook that we'd be involved
Speaker 1: with as the market really wrestles with with this this
Speaker 1: interest rate phenomenon. So, I mean the first part, we
Speaker 1: do think it's too early on technology. We think cyclicals
Speaker 1: and value are probably a place that the people can
Speaker 1: again hide out in. But this is probably more of
Speaker 1: a of a relative opportunity than an absolute opportunity until
Speaker 1: we can see more stability with both you know, caex
Speaker 1: four pasts as well as what's gonna happen with injured trades.
Speaker 1: Really appreciate getting your insights this morning, Eric, thanks so
Speaker 1: much for being with us this morning. Eric Friedman, chief
Speaker 1: investment officer at us Bank Asset Management. Futures this morning
Speaker 1: trading flat after those fed minutes. We've got SMP futures
Speaker 1: hired by two points right now. It's been a swing
Speaker 1: between gains and losses just incrementally on the session this morning.
Speaker 1: Down futures are hired by five points and a sore
Speaker 1: NASTAC futures actually and the tenure treasury right now down
Speaker 1: three thirty seconds. You'ld three point six nine percent, and
Speaker 1: the yield on the two year is at four point
Speaker 1: three seven percent. I'm ex Scrooge moment higher two and
Speaker 1: a half percent, or a dollar eighty one seventy four
Speaker 1: dollars sixty five cents. Baryl Comex golds down two tenths
Speaker 1: percent at eighteen fifty four seventy announced and right now
Speaker 1: the Euro slightly stronger against the dollar, trading at one
Speaker 1: point zero six one four. This is Bloomberg Markets, headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business at Land at Bloomberg Quicktake.
Speaker 1: This's a Bloomberg Business flash, and I'm Karen Moscow. Futures
Speaker 1: are little change this morning. The decks in Germany's down
Speaker 1: a tenth of upper cent and the tenure treasury down
Speaker 1: three thirty seconds you at three point six nine percent.
Speaker 1: They yield on the two year four point three seven percent.
Speaker 1: Nimex screwed oil is down is up rather up two
Speaker 1: point six percent, up a dollar eighty nine It's seventy
Speaker 1: four dollars seventy three cents. A barrel comes Gold is
Speaker 1: down a quarter percent or five dollars twenty cents at
Speaker 1: eighteen fifty three eighty announced the euro this morning one
Speaker 1: point six one four against the dollar, the yen one
Speaker 1: thirty two point for eight and as a Bloomberg Business Flash,
Speaker 1: Nathan all right, Karen, Thanks, it's almost fifty six on
Speaker 1: Wall Street. It's time for our daily Bloomberg lob Brief,
Speaker 1: exploring legal issues in the news. Today we look at
Speaker 1: one of the most controversial terms in Supreme Court history.
Speaker 1: Two saw the leak of a draft opinion that would
Speaker 1: eventually overturn abortion rights. There were ethics scandals, a man
Speaker 1: charged with the attempted murder of Justice Brett Kavanaugh, and
Speaker 1: public confidence in the Court at an all time low.
Speaker 1: But you never know any of that. Reading Chief Justice
Speaker 1: John Roberts year end report on the Judiciary for more,
Speaker 1: Bloomberg's June Grosso speaks with constitutional law professor Stephen Vladdock
Speaker 1: of the University of Texas Law School. His report was
Speaker 1: most remarkable for what it didn't say about two being
Speaker 1: this tumultuous year at the Court. Yeah, I think that's right,
Speaker 1: and I think the you know, the year end report,
Speaker 1: at least as it was originally conceigued by two Cutice
Speaker 1: War and Burger was meant to be a bit more
Speaker 1: of a sober and transparent reflection on not necessarily individual
Speaker 1: decision June, but on the work of the Court and
Speaker 1: on play is where the Court, specifically in the federal
Speaker 1: courts in general, could benefit from potential legislative reforms, and
Speaker 1: I think what we saw in this year's report is
Speaker 1: really very little of that. No reflection on where the
Speaker 1: Court is as an institution, no reflection on potential places
Speaker 1: where changes might benefit the judiciary. Really just not much
Speaker 1: more than an anecdote, and thank you to Congress for
Speaker 1: legislation that already passed about judicial security. What was glaringly
Speaker 1: missing there was no mention of the leak of the
Speaker 1: draft opinion in the Job's case and the investigation that
Speaker 1: Roberts had ordered into the leak more than seven months ago.
Speaker 1: I'm not supprised there's no mention of it in the report.
Speaker 1: I'm a little suppised in the mention of it anywhere else,
Speaker 1: But I think so it's a symptom of this broader disease,
Speaker 1: which is that there are pretty significant issues affecting the
Speaker 1: Supreme Court that are unrelated to the substance of specific
Speaker 1: decisions and by not addressing those issues. What did our
Speaker 1: own report does is it says one of two things.
Speaker 1: It's truth. Either the Chief Justice doesn't agree that these
Speaker 1: are serious issues worthy of conversation and studies, or you know,
Speaker 1: he agrees that they're serious issues, but he doesn't think
Speaker 1: that the political branches should have any role in discussing
Speaker 1: or responding to them. And you know, dude, I don't
Speaker 1: know which of those two things it's an accurate description
Speaker 1: of where the Chief Justice is. I think they're both
Speaker 1: problematic in separate, but you know, equally important respects. See,
Speaker 1: I'm beginning to think we are not going to find
Speaker 1: out where the lead came from, not because they haven't
Speaker 1: found out, but that they're just not going to tell us.
Speaker 1: You would ask me, gosh, last July, I think I
Speaker 1: would have predicted this exact in neumb right. I mean,
Speaker 1: this always had all of the hallmarks of a you know,
Speaker 1: don't worry, trust us, We've got us under control, and
Speaker 1: we can think of reasons why we're never going to
Speaker 1: find out. Perhaps the Chief Justice did not like the
Speaker 1: answer when they figured out who the leaker was. Perhaps
Speaker 1: they really haven't figured out where the leaker was, and
Speaker 1: whatever it is. Yeah. I think anyone who thought this
Speaker 1: was going to be some big public thing, I think
Speaker 1: didn't fully appreciate how little it is in the Supreme
Speaker 1: Court interest to perpetuate the conversation about leaks and its
Speaker 1: internal decision making processies. And that was Stephen Vladdock of
Speaker 1: the University of Texas Law School speaking with Bloomberg's June Grosso.
Speaker 1: You can catch more of that interview, plus analysis of
Speaker 1: the latest legal news by subscribing to the Bloomberg Law Podcast.
Speaker 1: You can download the show at Bloomberg dot com slash podcast,
Speaker 1: and attorneys can find exceptional legal research and business development
Speaker 1: tools at Bloomberg Law dot com and on the Bloomberg
Speaker 1: terminal at b law. Go Futures flat will check the
Speaker 1: business headlines, all the news you need to start your
Speaker 1: day hour two if Bloomberg Daybreak starts right now,