WEBVTT - Bloomberg Daybreak: November 15, 2022 - Hour 2 (Radio) 0:00:02.840 --> 0:00:06.240 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:06.320 --> 0:00:10.440 Daybreak for Tuesday, November two. Coming up this hour, a 0:00:10.520 --> 0:00:13.720 majority of G twenty nations are set to condemn Russia's 0:00:13.720 --> 0:00:17.120 war in Ukraine. Democrat Katie Hobbs, when's the governor's race 0:00:17.160 --> 0:00:20.919 in Arizona? Former President Trump prepares to announce another run 0:00:20.960 --> 0:00:23.040 for the White House. And we'll tell you which chip 0:00:23.040 --> 0:00:25.800 company we're in. Buffett is taking a stink in New York, 0:00:25.800 --> 0:00:28.159 Mayor Adams announce as a plan to provide housing for 0:00:28.200 --> 0:00:31.400 the homeless. Plus federal prosecutors say Rudy Giuliani when not 0:00:31.520 --> 0:00:35.000 face criminal charges over Ukraine. By Michael blarn Moore Ahead, 0:00:35.320 --> 0:00:38.080 I'm John Stash Hour and Sports Washington, Upset Philadelphia and 0:00:38.080 --> 0:00:40.319 Monday Night Football. I'll win for the Islanders. The nick 0:00:40.360 --> 0:00:45.520 Zonets are on the road tonight. That's all Strady Ahead 0:00:45.560 --> 0:00:49.160 on Bloomberg Daybreak on Bloomberg e Living Free on New York, 0:00:49.320 --> 0:00:54.000 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.320 --> 0:00:59.040 Bloomberg nine sixties and Francisco Syrius XAM one nineteen and 0:00:59.120 --> 0:01:02.200 around the world on Bloomberg Radio dot Com and via 0:01:02.240 --> 0:01:09.160 the Bloomberg Business and good morning up Nathan Hagar and 0:01:09.200 --> 0:01:11.760 I'm Karen Moscow, u s NO Index, Futures on the 0:01:11.880 --> 0:01:13.800 rise this morning. We're coming up to six o one 0:01:13.800 --> 0:01:15.800 on Wall Street, and we check the markets every fifteen 0:01:15.840 --> 0:01:19.160 minutes throughout the trading day. On Bloomberg. SNP Future is 0:01:19.240 --> 0:01:21.480 up thirty points this morning. Down futures up a hundred 0:01:21.560 --> 0:01:24.679 seventy one nasday futures up one D forty ten year 0:01:24.680 --> 0:01:27.640 Treasury up thirteen thirty seconds, the three point eight to 0:01:27.760 --> 0:01:30.400 zero percent. Nathan, Okay, Karen. We'll get more on the 0:01:30.440 --> 0:01:32.440 markets in a minute, but we begin this morning with 0:01:32.480 --> 0:01:35.240 the G twenty summit. A majority of nations is set 0:01:35.240 --> 0:01:37.840 to condemn Russia's war in Ukraine. That is, according to 0:01:37.880 --> 0:01:41.160 a draft statement seen by Bloomberg News. It represents a 0:01:41.240 --> 0:01:44.679 compromise design to get as many signatures as possible. We 0:01:44.760 --> 0:01:47.920 spoke with former UK Ambassador to Russia Tony Brenton about 0:01:47.960 --> 0:01:51.960 the statement. It doesn't directly Russia. It criticizes the war, 0:01:52.120 --> 0:01:57.560 but doesn't blame Russia for it. It's implicitly criticizes Western sanctions. 0:01:57.560 --> 0:01:59.200 If you look at the economic bits of it, it's 0:01:59.240 --> 0:02:02.639 all about disrupt of supply chains and hitting the global 0:02:02.680 --> 0:02:05.040 energy markets and so on, which war has something to 0:02:05.080 --> 0:02:07.320 do with it, But the real source of that disruption 0:02:07.480 --> 0:02:10.760 is of course Western sanctions, so it stays around various 0:02:10.840 --> 0:02:14.200 delicate points. Former UK Ambassador to Russia Tony Brenton says 0:02:14.240 --> 0:02:16.359 the statement is expertly crafted to get as many G 0:02:16.520 --> 0:02:19.920 twenty leader signatures as possible, well, Nathan. The agreement comes 0:02:19.919 --> 0:02:22.520 just hours after President Biden sat face to face with 0:02:22.600 --> 0:02:25.040 shej and Ping and an effort to ease tensions between 0:02:25.040 --> 0:02:28.440 the two countries. US Trade Chief Katherine Tye says the 0:02:28.480 --> 0:02:31.119 meeting sends a powerful message. You can see that there 0:02:31.200 --> 0:02:34.720 is a familiarity between them, a comfort between them in 0:02:34.800 --> 0:02:38.160 terms of relating to each other, and I think that 0:02:38.240 --> 0:02:41.120 that's a really powerful signal to the rest of the world. 0:02:41.680 --> 0:02:44.760 And US Trade Chief Katherine Tye says further discussions will 0:02:44.800 --> 0:02:48.240 continue meantime. Former Secretary of State Henry Kissinger is praising 0:02:48.240 --> 0:02:51.600 the talks as a step to ease tensions. I would say, 0:02:51.960 --> 0:02:59.880 at the picketting of a bridge building effort, which its passive, 0:03:00.160 --> 0:03:05.120 so long as we remember that if the bridge doesn't 0:03:05.160 --> 0:03:11.160 get billed, the precipiety both former Secretary Kissinger and US 0:03:11.200 --> 0:03:13.720 Trade Representative Time made the comments, said the Bloomberg New 0:03:13.720 --> 0:03:16.400 Economy Forum in Singapore, well back here in the US, 0:03:16.520 --> 0:03:19.760 Karen politics is the focus. It's another big win for 0:03:19.919 --> 0:03:23.440 Democrats as Arizona becomes the latest battleground to reject a 0:03:23.520 --> 0:03:27.160 prominent election to nine candidate. Amy Morris has the details 0:03:27.160 --> 0:03:31.320 from our Bloomberg newsroom. In Washington, Democrat Katie Hobbs was 0:03:31.360 --> 0:03:35.240 elected governor of Arizona, defeating Republican Kerry Lake, who embraced 0:03:35.280 --> 0:03:40.160 former President Trump's baseless claims of widespread fraud in the election. 0:03:40.480 --> 0:03:43.240 The race was called with about percent of the ballots 0:03:43.280 --> 0:03:46.280 counted and Hobbs leading Lake fifty point four percent to 0:03:46.400 --> 0:03:49.600 forty nine point six percent, less than twenty one tho votes. 0:03:49.840 --> 0:03:53.200 It is the latest instance of midterm election voters rejecting 0:03:53.240 --> 0:03:58.800 election deniers in battleground states including Michigan, Pennsylvania, Nevada, and Wisconsin. 0:03:59.160 --> 0:04:02.640 In Washington maybe more as Bloomberg Daybreak, Amy, thank you well. 0:04:02.720 --> 0:04:05.640 Kerry lakes loss in Arizona is unlikely to stop a 0:04:05.720 --> 0:04:09.360 quote very big announcement in Florida tonight. Former President Trump 0:04:09.440 --> 0:04:11.240 is said to kick off a third run for the 0:04:11.240 --> 0:04:14.240 White House at nine pm Wall Street time. That's despite 0:04:14.240 --> 0:04:17.840 a growing number of Republicans and donors urging him to reconsider. 0:04:18.120 --> 0:04:21.640 Among those the billionaire founder of Citadel, Ken Griffin. He lost. 0:04:23.600 --> 0:04:27.120 We lost Georgia because of his behavior in the Senate race. 0:04:27.160 --> 0:04:30.520 In that's a second loss. And then this year the 0:04:30.520 --> 0:04:34.159 Republicans lost the Senate because the Trump back Candidston Senate 0:04:34.240 --> 0:04:38.120 races were rejected by American voters. That's a three time loser. 0:04:38.400 --> 0:04:41.080 Ken Griffin made those comments, said the Bloomberg New Economy 0:04:41.120 --> 0:04:43.760 Forum in Singapore. Here more of the Citadel founders are 0:04:43.760 --> 0:04:47.200 marks coming up later in our program. Turning to the economy, now, Karen, 0:04:47.200 --> 0:04:50.000 we're getting more signs on policy from the FED. Another 0:04:50.040 --> 0:04:52.680 central bank official says it could start slowing the pace 0:04:52.720 --> 0:04:54.880 of rate hikes. We caught up with FED Vice chair 0:04:55.040 --> 0:05:00.000 while Brainerd, I think it will probably be appropriate um 0:05:00.240 --> 0:05:04.760 uh soon um to move to a flower pace of increases. 0:05:04.800 --> 0:05:08.800 But I think what's really important to emphasize we've done 0:05:08.839 --> 0:05:12.159 a lot, but we have additional work to do, both 0:05:12.200 --> 0:05:17.719 on raising rates and sustaining restraint to bring inflation down 0:05:17.760 --> 0:05:20.920 to two percent. Advice chir Law Brandon made those comments 0:05:20.920 --> 0:05:23.720 in an interview with Bloomberg News in Washington. Markets are 0:05:23.720 --> 0:05:27.520 currently pricing in a fifty basis point rate hike in December. Well, Nathan, 0:05:27.520 --> 0:05:29.960 the Fed and Wall Street get another inflation report to 0:05:30.000 --> 0:05:32.880 digest this morning. The producer price in next for October 0:05:33.000 --> 0:05:35.599 comes out before the opening bell on Bloomberg's Michael McKee 0:05:35.600 --> 0:05:38.800 has a preview. There's no direct link between CPI and 0:05:38.920 --> 0:05:43.120 PPI producer prices. There are middlemen in between. Nevertheless, the 0:05:43.160 --> 0:05:46.560 big drop in consumer prices suggests downside risk to pp 0:05:46.720 --> 0:05:49.440 I as well. In particular, economists are looking for a 0:05:49.520 --> 0:05:53.840 drop in the trade services category. Essentially, it reflects wholesaler 0:05:53.880 --> 0:05:57.520 and retailer margins. The huge pandemic demand for goods led 0:05:57.560 --> 0:06:01.599 to big margin expansions. Now the goods demand is coming down, 0:06:02.040 --> 0:06:06.200 margins should compress. Michael McKee, Bloomberg, Gabrie, all right, Mike, 0:06:06.240 --> 0:06:08.599 thanks for also getting earning from big retail this morning. 0:06:08.640 --> 0:06:11.320 Just got earning from Home Depot crossing the Bloomberg terminal 0:06:11.320 --> 0:06:14.840 with third quarter comparable sales beating the average analyst estimate. 0:06:15.120 --> 0:06:18.720 Later this morning we hear from Walmart. Meantime, Nathan, chip 0:06:18.800 --> 0:06:21.719 stocks are getting a liftist Morning on News, Berkshire Hathaway 0:06:21.800 --> 0:06:25.240 has taken a stake in Taiwan semiconductor manufacturing. We get 0:06:25.240 --> 0:06:28.560 more from Bloomberg's done Christner. For a long while, Berkshire 0:06:28.640 --> 0:06:31.599 chairman Warren Buffett shied away from the tech industry. He 0:06:31.640 --> 0:06:34.720 has spoken about not wanting to invest in businesses he 0:06:34.760 --> 0:06:38.760 didn't fully understand. In recent years, though, the stance has changed, 0:06:38.880 --> 0:06:42.720 and now a filing shows Berkshire acquired about sixty million 0:06:42.839 --> 0:06:45.479 a d r S and t SMC in the third quarter. 0:06:45.760 --> 0:06:48.719 Assuming the average quarterly price, the stake would have cost 0:06:48.760 --> 0:06:53.160 Buffett five point one billion dollars. T SMC has overtaken 0:06:53.200 --> 0:06:56.119 Intel in the cutting edge of chip making. It's also 0:06:56.160 --> 0:06:58.479 emerged as a vital player as the U. S and 0:06:58.560 --> 0:07:02.760 China clash over leadership in global technology industries. In New 0:07:02.839 --> 0:07:05.200 York on Dug Prisoner Bloomberg Daybreak, Thank you, Doug and 0:07:05.200 --> 0:07:07.440 Bloomberg Daybreaks brought to you by b n y Melon's 0:07:07.480 --> 0:07:10.360 Pershing learned why the world's most sophisticated wealth management and 0:07:10.400 --> 0:07:13.760 institutional firms rely on Pershing to help them improve profitability, 0:07:13.760 --> 0:07:18.720 create efficiency, attract talent, and manage risk At Pershing dot Com. 0:07:18.760 --> 0:07:24.280 This is Bloomberg and at six though seven on Wall 0:07:24.320 --> 0:07:26.960 Street where thirty six degrees in Central Park. It's a 0:07:27.000 --> 0:07:29.680 half hour getting in through the hall and tunnel. This morning, 0:07:30.240 --> 0:07:32.360 Michael Bars here with more on what's going on once 0:07:32.400 --> 0:07:35.080 you get into New York and around the world. Good morning, Michael, 0:07:35.160 --> 0:07:37.920 Good morning Nathan. New York City officials unveiled a new 0:07:37.960 --> 0:07:41.240 plan to find homes for the homeless. Mayor Eric Adams 0:07:41.360 --> 0:07:44.000 as the new options include cutting down on the red 0:07:44.040 --> 0:07:48.200 tape and reducing requirements for vouchers and other programs. We 0:07:48.320 --> 0:07:52.560 are changing the city FIPPS UH rental assistance programs so 0:07:52.640 --> 0:07:55.520 that we can give vouchers to more families and make 0:07:55.560 --> 0:07:59.680 them easier to use. We're reducing the number of ours 0:07:59.720 --> 0:08:03.920 family these are required to work to become eligible, from 0:08:03.960 --> 0:08:08.080 thirty to fourteen hours per week. Mayor Adams went on 0:08:08.120 --> 0:08:10.520 to say it doesn't make sense for a person making 0:08:10.560 --> 0:08:13.239 minimum wage to be told they make too much money 0:08:13.240 --> 0:08:17.400 for city assistance. Federal prosecutors in Manhattan have declined to 0:08:17.440 --> 0:08:21.840 file criminal charges against Rudy Giuliani over his lobbying activities 0:08:21.840 --> 0:08:25.640 in Ukraine. Prosecutors had been investigating whether the former New 0:08:25.720 --> 0:08:29.040 York mayor should have registered as a foreign agent over 0:08:29.120 --> 0:08:32.440 his lobbying of the Trump administration to house then US 0:08:32.480 --> 0:08:36.720 Ambassador Marie Ivanovitch from Ukraine. Giuliani maintained he had done 0:08:36.720 --> 0:08:40.800 nothing wrong. Tech entrepreneur Brandon Williams has been elected to 0:08:40.800 --> 0:08:44.200 Congress in a district in central New York, becoming the 0:08:44.240 --> 0:08:47.720 eleventh Republican to win a house race this fall. AP 0:08:47.960 --> 0:08:51.960 finally called it late last night. Williams defeated Democrat Francis 0:08:52.120 --> 0:08:55.680 Canole in the contest to pick a successor to US 0:08:55.760 --> 0:09:00.000 Representative John Katko, a Republican who is retiring from office. 0:09:00.640 --> 0:09:03.480 Doctors in New Mexico are warning of what they are 0:09:03.520 --> 0:09:07.720 calling the threat of a triple Demmick Bloomberg's and Maxter 0:09:07.840 --> 0:09:11.199 reports that is the convergence of the flu rs V 0:09:11.480 --> 0:09:14.599 and COVID at the same time. Dr John Peterson is 0:09:14.600 --> 0:09:17.960 a pediatric specialist in Albuquerque. Is not uncommon for us 0:09:18.000 --> 0:09:23.439 to have a very significant respiratory viral season for for children. 0:09:23.679 --> 0:09:27.760 What's different about about this is that it's occurring very early. 0:09:27.920 --> 0:09:31.360 Peterson says. Hospitals nationwide are already seeing a large number 0:09:31.360 --> 0:09:35.520 of cases and infants with RSV and fear a very 0:09:35.520 --> 0:09:39.520 serious season overall. In San Francisco, I'm at Baxter, Bloomberg, 0:09:39.520 --> 0:09:42.800 Gay Break, President Joe Biden and Indonesian President Joco Widotto 0:09:42.840 --> 0:09:46.640 will announce the Climate Finance Deal, providing twenty billion dollars 0:09:46.840 --> 0:09:50.240 to help Indonesia pivot away from coal power. The deal 0:09:50.320 --> 0:09:53.360 broke it between the U S, Indonesia, and Japan, came 0:09:53.400 --> 0:09:55.800 on the sidelines of the G twenty summit in Belling. 0:09:56.200 --> 0:09:58.599 Global News twenty four hours a day on air and 0:09:58.720 --> 0:10:02.000 on Bloomberg Quicktake, houred by more than twenty seven hundred 0:10:02.040 --> 0:10:04.840 journalists and analysts more than a hundred twenty countries. Michael Barr, 0:10:04.920 --> 0:10:11.720 this is Bloomberg, Nathan, Michael, thank you almost sixth ten 0:10:11.760 --> 0:10:13.600 on Wall Street time for the Bloomberg Sports Up. They 0:10:13.600 --> 0:10:16.080 brought to you by Tri State OUTI. There's John Stanshaw, 0:10:16.240 --> 0:10:19.480 all right, Nathan, fifty years ago. Miami Dolphins last NFL 0:10:19.480 --> 0:10:22.000 team to go an entire season undefeated. Nobody expected the 0:10:22.040 --> 0:10:24.959 Eagles to go twenty and oh. Last night didn't figured 0:10:25.040 --> 0:10:27.000 to be their first lost. An eleven point favorite at 0:10:27.040 --> 0:10:29.560 home with Washington has got all kinds of issues with 0:10:29.559 --> 0:10:32.839 their ownership, but the Commanders, after falling behind early dominated 0:10:32.920 --> 0:10:35.520 had the ball for more than forty minutes, forced four 0:10:35.640 --> 0:10:38.400 Philly turnovers, three of the fourth quarter, one right at 0:10:38.440 --> 0:10:41.559 the end after hurts Washington brigs three. He steps up, 0:10:41.800 --> 0:10:45.079 throws underneath, caught by Walker, thrown to Smith. You try 0:10:45.120 --> 0:10:47.040 to throw it backwards. He's hit my camp pearl that 0:10:47.120 --> 0:10:49.480 has picked up by Katy too Hill in the end zone. 0:10:49.600 --> 0:10:54.040 It's a defensive touchdown to end the game. Point Tendon 0:10:54.160 --> 0:10:58.959 undefeated season of the Eagles b I G Washington Philadelphia 0:10:59.040 --> 0:11:00.800 twenty one to the Commander. Now five and five, the 0:11:00.840 --> 0:11:02.840 Eagles are eight and one, the Giants only one game behind. 0:11:03.240 --> 0:11:05.319 Giants still left two games left with Philly also to 0:11:05.440 --> 0:11:08.400 with Washington Islanders four to one at Ottawa the Isles 0:11:08.440 --> 0:11:10.320 of one nine to the last eleven. The Devils have 0:11:10.360 --> 0:11:12.520 won all of their last night, and they played tonight 0:11:12.520 --> 0:11:14.600 in Montreal. Started a five game road trip for the 0:11:14.640 --> 0:11:18.160 next first up Utah. The Jazz surprisingly with ten wins, 0:11:18.200 --> 0:11:20.720 most in the West. Then that's still without Kyrie irving 0:11:20.760 --> 0:11:23.559 their trip to Todos tonight in Sacramento. Tragedy at the 0:11:23.640 --> 0:11:26.360 University of Virginia. Three members of the football team murdered 0:11:26.360 --> 0:11:28.400 on campus Sunday night, they had just played a game 0:11:28.440 --> 0:11:30.680 on Saturday. They had just returned home from a bus 0:11:30.720 --> 0:11:32.839 trip to Washington, d C. A one time member of 0:11:32.840 --> 0:11:35.400 the football team has been arrested. Parrots twenty one year 0:11:35.440 --> 0:11:38.280 old outfielders named rookies of the Year, Seattle's Julio Rodriguez, 0:11:38.320 --> 0:11:41.360 Atlanta's Michael Harris. They'll name the managers of the Year today. 0:11:41.400 --> 0:11:43.520 The Mets Bucks show Walter favored in the n album. 0:11:43.520 --> 0:11:46.440 Miami Marlins already have a female g M. They promoted 0:11:46.440 --> 0:11:49.320 New Jersey native Caroline O'Connor to be their team president. 0:11:49.559 --> 0:11:53.200 John stash Award, Blomberg spalls Nathan John Thank you. SMP 0:11:53.320 --> 0:11:55.319 Future is now up thirty points, South Futures up a 0:11:55.360 --> 0:11:58.600 hundred forty six and sert NASTAC futures actually ten year 0:11:58.640 --> 0:12:02.480 treasuries up sixteen thirty seconds. The yield three point seven 0:12:02.559 --> 0:12:08.360 nine percent. This is Bloomberg. Bloomberg Sports was brought to 0:12:08.360 --> 0:12:10.280 you by Audie. Don't let someone else drive off in 0:12:10.320 --> 0:12:12.760 the autie model. You've always wanted to visit your local 0:12:12.800 --> 0:12:14.760 price state autie dealer to get behind the wheel of 0:12:14.760 --> 0:12:18.440 yours today, or visit autie Offers dot com for more information. 0:12:21.960 --> 0:12:25.360 Markets headlines and breaking news twenty four hours a day 0:12:25.480 --> 0:12:28.480 at Bloomberg dot Com, the Bloomberg Business at and at 0:12:28.480 --> 0:12:38.000 Bloomberg Quick Tape. He's a Bloomberg Business Flash and I'm 0:12:38.080 --> 0:12:40.760 Cameron Moscow watching shares of Home Depot. They're down more 0:12:40.800 --> 0:12:43.560 than two percent in early trading. It did report same 0:12:43.640 --> 0:12:45.960 store sales for the third quarter that beat the average 0:12:45.960 --> 0:12:49.560 analysts estimate and maintained its forecast for the year, though 0:12:49.600 --> 0:12:52.719 and that missed estimates. Futures are higher. S and P 0:12:52.880 --> 0:12:55.240 futures up twenty eight points down features of a hundred 0:12:55.240 --> 0:12:57.520 four and NAS day futures up one hundred thirties seven. 0:12:57.760 --> 0:12:59.760 The Hank Sing in Hong Kong jump four point one 0:12:59.800 --> 0:13:02.400 for sent the ten year treasury up fifteen thirty seconds. 0:13:02.559 --> 0:13:04.760 He had three point seven nine and a yield on 0:13:04.840 --> 0:13:07.880 the two year four point three. And as a Bloomberg 0:13:07.880 --> 0:13:10.240 Business Flash. Now here's Michael Barr with more on what's 0:13:10.280 --> 0:13:12.920 going on around the world. Michael Karen, thank you very much. 0:13:12.960 --> 0:13:15.440 Former President Donald Trump has said to be preparing to 0:13:15.520 --> 0:13:19.120 launch another campaign for the White House with an announcement tonight. 0:13:19.679 --> 0:13:23.240 Some Republicans are urging him to delay the announcement, blaming 0:13:23.280 --> 0:13:26.319 Trump for far right candidates losing in the mid term elections, 0:13:26.720 --> 0:13:31.240 Democrat Katie Hobbs was elected governor of Arizona. Hobbs defeated 0:13:31.280 --> 0:13:35.320 Republican Kerry Lake, who embraced former President Trump's claims of 0:13:35.400 --> 0:13:40.640 widespread fraud in the election. In the NFL, Undefeated no More. 0:13:40.720 --> 0:13:43.680 The Eagles lost to the Commander's thirty two twenty one 0:13:44.000 --> 0:13:46.280 in the NBA, and the Celtics have won seventh straight, 0:13:46.320 --> 0:13:49.760 beating the Thunder one twenty two. The Warriors won in 0:13:49.800 --> 0:13:53.160 the NHL. The Islanders won Global news twenty four hours 0:13:53.200 --> 0:13:56.400 a day on air and on Bloomberg Quicktake, powered by 0:13:56.440 --> 0:13:59.080 more than twenty seven hundred journalists and analysts more than 0:13:59.120 --> 0:14:02.400 a hundred twenty trees. Michael var and this is Bloomberg. 0:14:02.840 --> 0:14:05.440 Thanks Michael. It's six nineteen on Wall Street Live from 0:14:05.440 --> 0:14:08.840 the Bloomberg Interactive Broker Studios. This is Bloomberg Daybreak, and 0:14:08.880 --> 0:14:11.439 we want to bring you some conversation from the Bloomberg 0:14:11.480 --> 0:14:15.600 New Economy Forum in Singapore, this time with Citadel founder 0:14:15.679 --> 0:14:19.320 Ken Griffin. In an interview with Bloomberg's Eric Shatzker, Griffin 0:14:19.360 --> 0:14:22.080 said he is skeptical the US can avoid a recession 0:14:22.200 --> 0:14:24.200 next year, though he also said it would be a 0:14:24.240 --> 0:14:27.040 dire error for the Federal Reserve to change course on 0:14:27.120 --> 0:14:30.920 monetary policy at this point. The Republican donor also discussed 0:14:30.960 --> 0:14:34.480 President Trump's potential third run for the White House. Let's 0:14:34.520 --> 0:14:38.560 listen in to that conversation. Now. The question the Republican 0:14:38.600 --> 0:14:42.000 Party is wrestling with is should it unify, unite if 0:14:42.000 --> 0:14:44.600 you will behind the Santis now or should it let 0:14:44.600 --> 0:14:49.960 the Trump the Santis rival lee play out, possibly, you know, 0:14:50.080 --> 0:14:52.840 in in a battle for the soul of the party 0:14:52.920 --> 0:14:56.920 that potentially puts it at a disadvantage relative to the 0:14:56.960 --> 0:14:59.600 Democrats two years from now. So there's we all had 0:14:59.600 --> 0:15:02.040 to sort of fantasy that these decisions are made by 0:15:02.080 --> 0:15:06.480 people in his back rooms. I haven't found that room, 0:15:06.560 --> 0:15:12.080 and I don't know those people. So in the United States, 0:15:12.120 --> 0:15:15.040 in both parties, the people that are running for the 0:15:15.080 --> 0:15:17.920 office the president, they're on a mission on their own 0:15:18.320 --> 0:15:20.360 and they're gonna do what they're gonna do. The process 0:15:20.400 --> 0:15:22.640 has to play out. The process has to play out now. 0:15:22.600 --> 0:15:25.920 I really do hope that President Trump sees the ready 0:15:26.000 --> 0:15:31.920 on the wall. He lost, we lost Georgia because of 0:15:31.960 --> 0:15:35.480 his behavior in the Senate race. In that's the second loss. 0:15:36.120 --> 0:15:38.800 And then this year the Republicans lost the Senate because 0:15:38.880 --> 0:15:42.200 the Trump backed candidates in the Senate races were rejected 0:15:42.200 --> 0:15:45.680 by American voters. That's a three time loser. And I'd 0:15:45.720 --> 0:15:48.040 like to think that the Republican Party is ready to 0:15:48.040 --> 0:15:50.480 move on from somebody who has been for this party 0:15:50.520 --> 0:15:53.760 a three time loser. And of course it's so important 0:15:53.800 --> 0:15:57.720 to talk about the Federal Reserve. It sets the risk 0:15:57.760 --> 0:15:59.280 free rate for the rest of the world. And of 0:15:59.280 --> 0:16:03.000 course his career add unbelievable complications with the strength of 0:16:03.040 --> 0:16:06.640 the dollar for emerging markets. Some fit officials can say 0:16:06.680 --> 0:16:12.880 the time has already come to back off. I could 0:16:12.880 --> 0:16:18.080 cite Charles Evans, I could cite Leo Branard, who didn't 0:16:18.080 --> 0:16:20.600 say it's time now, but it will be time soon. 0:16:22.040 --> 0:16:25.240 Are we there yet? It's sort of like saying you 0:16:25.280 --> 0:16:27.640 go to your doctor you've got a bacterial infection, and 0:16:27.680 --> 0:16:31.120 he gives you ten pills to take, and you stopped 0:16:31.160 --> 0:16:34.400 taking him after pill number seven, and then you relapse 0:16:34.800 --> 0:16:39.040 a few days later, Like it's not yet time for 0:16:39.160 --> 0:16:42.640 us to change course on our monetary policy. We want 0:16:42.680 --> 0:16:44.920 to see that we put the inflation genie back in 0:16:44.960 --> 0:16:48.120 the bottle we could. We've endured a ton of pain 0:16:48.200 --> 0:16:51.200 in getting to this point. The housing market is definitely 0:16:51.240 --> 0:16:56.000 under duress, Durable good sales are under duress. High ticket 0:16:56.040 --> 0:16:58.640 items are just out of reach consumers today. But we 0:16:58.720 --> 0:17:01.840 haven't gotten a job done. And to take the foot 0:17:01.880 --> 0:17:04.879 off the break right now and not finish the job, 0:17:05.440 --> 0:17:07.960 I think it's the absolute worst mistake the FED could 0:17:08.000 --> 0:17:14.480 possibly make. Why what what happens if they again back 0:17:14.520 --> 0:17:18.200 off too early? If if if you take only seven 0:17:18.240 --> 0:17:20.359 pills instead of ten, what are the consequences for the 0:17:20.440 --> 0:17:22.879 U s economy and for the global economy. Furthermore, so, 0:17:22.960 --> 0:17:27.280 the biggest concern is you on anchor inflation expectations. So 0:17:27.600 --> 0:17:32.160 right now the American public believes, and not as much 0:17:32.160 --> 0:17:34.360 as we'd like, but the American public believes the FED 0:17:34.440 --> 0:17:37.359 is going to get the job done. If we take 0:17:37.480 --> 0:17:39.359 the foot off the break, we don't finish the course 0:17:39.359 --> 0:17:45.240 of antibiotics, and inflation starts to flare back up, the 0:17:45.280 --> 0:17:49.240 FED will have lost credibility. If a FED loses credibility 0:17:49.320 --> 0:17:53.840 and inflation expectations on anchor, then the amount by which 0:17:53.840 --> 0:17:56.720 will need to raise rates and deter economic growth will 0:17:56.760 --> 0:17:59.520 be a much bigger bill to pay, and we just 0:17:59.800 --> 0:18:02.200 we shouldn't put ourselves a position to pay that bill. 0:18:02.359 --> 0:18:04.439 We should get the job done. Now, we think that 0:18:04.480 --> 0:18:07.440 the one of the biggest drivers of consumer prices, which 0:18:07.480 --> 0:18:12.600 is rent, has reached near term peak. The shift from 0:18:12.600 --> 0:18:15.920 a goods based economy to a service based economies going 0:18:15.960 --> 0:18:19.880 to create this this depreciation and pricing of goods, which 0:18:19.920 --> 0:18:22.520 of course will will help bring inflation down. So we 0:18:22.560 --> 0:18:25.720 think the inflationary path is pete. We think by the 0:18:25.800 --> 0:18:30.200 end of our our our central view as inflation will 0:18:30.240 --> 0:18:33.439 be back to roughly a load of mid twos range, 0:18:33.920 --> 0:18:36.720 which is a dramatic change from where we are today. 0:18:37.040 --> 0:18:38.679 What I want to know from you, Ken is what 0:18:38.720 --> 0:18:42.360 do you make of the spectacular collapse of Sam Bankman 0:18:42.480 --> 0:18:46.960 Freed's f t X. Okay, so big picture, the crypto 0:18:47.000 --> 0:18:48.879 market cap today is a fraction of what it was 0:18:48.880 --> 0:18:51.879 when we first started talking about it. So crypto is 0:18:51.920 --> 0:18:54.080 not It was three trillion and now it's well under 0:18:54.080 --> 0:18:59.080 a billions, which a big part of that stable coins, right, 0:18:59.119 --> 0:19:01.480 So you you really moved back into world of Bitcoin 0:19:01.600 --> 0:19:05.960 and ethereum is the two dominant cryptocurrencies, both which actually 0:19:05.960 --> 0:19:09.240 happened to be c c regulated. Look, f t X 0:19:09.880 --> 0:19:14.080 is one of these absolute travesties in the history of 0:19:14.119 --> 0:19:17.640 financial markets. I mean people will lose billions of dollars. People, 0:19:18.200 --> 0:19:22.520 people are gonna lose billions of dollars, and that undermines 0:19:22.840 --> 0:19:28.800 trust in all financial markets. And that was Citadel founder 0:19:28.880 --> 0:19:32.360 Ken Griffin speaking at the Bloomberg New Economy Forum in Singapore. 0:19:32.400 --> 0:19:35.160 You can catch the full interview on Bloomberg dot com 0:19:35.240 --> 0:19:38.160 and on the Bloomberg terminal. Looking ahead to the market, 0:19:38.200 --> 0:19:41.439 open futures are pointed higher. We've got SMP futures right 0:19:41.480 --> 0:19:44.160 now up twenty six points. Now futures up eight seven 0:19:44.600 --> 0:19:47.479 and NASTACK futures are higher by a hundred thirty one 0:19:47.520 --> 0:19:50.720 points ten. Your treasuries up fourteen thirty seconds. The yield 0:19:50.760 --> 0:19:53.680 three point zero percent. Yield on the two year four 0:19:53.880 --> 0:19:57.560 point three four Quick check a bitcoin, it's up two 0:19:57.560 --> 0:20:01.520 point two on the session at sixteen thousand, seven forty dollars. 0:20:02.600 --> 0:20:08.600 You're listening to Bloomberg Day b Bloomberg eleven three oh Weather. 0:20:08.720 --> 0:20:11.560 Late day showers today with a high in the upper forties, 0:20:11.680 --> 0:20:14.840 rain of land early tomorrow, turn partly sunny, low fifties 0:20:14.840 --> 0:20:18.119 for highs upper forties again Thursday, Right now thirty six 0:20:18.320 --> 0:20:25.399 in Central Park, broadcasting live from the Bloomberg Interactive Broker 0:20:25.520 --> 0:20:28.920 Studio in New York, Bloomberg E Living Freedom to Washington, 0:20:29.000 --> 0:20:33.120 d C, Bloomberg to Boston, Bloomberg one oh six one 0:20:33.200 --> 0:20:36.680 does San Francisco, Bloomberg M sixty to the Country, Sirius 0:20:36.840 --> 0:20:39.439 xm Cho one nine team, and around the globe the 0:20:39.440 --> 0:20:43.959 Bloomberg business in Bloomberg Radio dot com. This is Bloomberg 0:20:44.040 --> 0:20:51.679 Day Break six thirty on Wall Street. Good morning, I'm 0:20:51.760 --> 0:20:54.879 Nathan Hager and I'm Karen Moscow. We are just about 0:20:55.160 --> 0:20:57.520 three hours away from the open of US trade. Ain't 0:20:57.560 --> 0:20:59.120 time for the five things that you need to notice? 0:20:59.160 --> 0:21:02.119 Start your day? To you by Interactive Brokers I b 0:21:02.240 --> 0:21:04.639 k R. Event Trader offers a new way to trade 0:21:04.640 --> 0:21:07.520 futures US event contracts. To trade your opinion on or 0:21:07.560 --> 0:21:11.000 no questions in KECME futures markets. Learn more an event 0:21:11.040 --> 0:21:15.240 Trader dot Interactive Brokers dot com. At first, a majority 0:21:15.240 --> 0:21:18.000 of nations are sent to condemn Russia's war in Ukraine 0:21:18.000 --> 0:21:20.639 at the G twenty summit in Indonesia, according to a 0:21:20.720 --> 0:21:24.040 draft to joint statements seen by Bloomberg News. We talked 0:21:24.080 --> 0:21:27.119 about it with former UK Ambassador to Russia Tony Brennon. 0:21:27.440 --> 0:21:30.320 What I've seen is is actually been rather expertly drafted 0:21:30.359 --> 0:21:34.040 to share a dedicate way around all sorts of people's obstacles. 0:21:34.400 --> 0:21:37.800 It doesn't directly criticize Russia. It criticizes the war, but 0:21:37.880 --> 0:21:41.560 not doesn't blame Russia for it. Former UK Ambassador to 0:21:41.640 --> 0:21:45.080 Russia Tony Brennon said the draft represents a compromise to 0:21:45.119 --> 0:21:47.720 get as many signatures as possible. Also at the G 0:21:47.920 --> 0:21:52.520 twenty Karen, President Biden announced the Pact of Global Infrastructure Investments. 0:21:53.160 --> 0:21:56.720 We're at an inflection point. Investments we make today will 0:21:56.760 --> 0:21:59.920 have far reaching impact on the world for generations to 0:22:00.480 --> 0:22:03.320 President Biden spoke after yesterday's face to face meeting with 0:22:03.400 --> 0:22:06.200 Chinese leader Shi Jin Paying. US Trade Chief Katherine Tye 0:22:06.240 --> 0:22:09.160 says it was an open discussion designed to ease tensions 0:22:09.240 --> 0:22:13.159 between the nations. He raised with President She something that 0:22:13.880 --> 0:22:19.000 we have raised consistently US concerns about the negative economic 0:22:19.080 --> 0:22:23.200 impacts of China's non market economic policies. US Trade Chief 0:22:23.280 --> 0:22:25.920 Katherine Tye spoke from the Bloomberg New Economy Forum in 0:22:26.040 --> 0:22:29.119 Singapore to Politics at Home now Nathan another blow to 0:22:29.240 --> 0:22:33.200 former President Trump. Trump ally and election denier carry Lake 0:22:33.400 --> 0:22:36.920 lost the Arizona governor's race to Democrat Katie Hobbs. The 0:22:37.000 --> 0:22:39.520 former president is making a very big announcement in nine 0:22:39.560 --> 0:22:42.640 PM tonight, likely a third White House bid, but many 0:22:42.720 --> 0:22:46.080 Republicans and donors are asking him to reconsider, including Citadel 0:22:46.160 --> 0:22:49.320 founder Ken Griffin. I'd like to think that the Republican 0:22:49.359 --> 0:22:51.679 Party is ready to move on from somebody who's been 0:22:51.760 --> 0:22:54.479 for this party, a three time loser. Ken Griffin made 0:22:54.520 --> 0:22:57.320 the comments at the Bloomberg New Economy Forum in Singapore 0:22:57.560 --> 0:22:59.920