WEBVTT - Bloomberg Daybreak: December 30, 2022 - Hour 1 (Radio) 0:00:01.840 --> 0:00:05.200 Markets, headlines and breaking news twenty four hours a day 0:00:05.320 --> 0:00:08.320 at Bloomberg dot Com, The Bloomberg Business at Land at 0:00:08.320 --> 0:00:18.240 Bloomberg Quicktake, this is a Bloomberg business lives and I'm Karen. 0:00:18.280 --> 0:00:21.200 Moscow futures are lower this morning. We checked the markets 0:00:21.239 --> 0:00:23.880 all day long here on Bloomberg with SMP down and 0:00:23.960 --> 0:00:26.279 NASDAG future is on down more than three tenths of 0:00:26.360 --> 0:00:29.360 upper cent. SMP futures down about thirteen points and down 0:00:29.360 --> 0:00:32.320 features down a hundred and NASDAG futures down thirty three. 0:00:32.400 --> 0:00:34.680 The decks in Germany's down three quarters of a percent. 0:00:34.960 --> 0:00:37.760 Ten year treasury down eight thirty seconds, yield three point 0:00:37.840 --> 0:00:40.120 eight four percent. That yield on the two year four 0:00:40.159 --> 0:00:42.879 point three eight percent. Nine mex screwed oil is down 0:00:42.920 --> 0:00:45.400 a quarter percent, or nineteen cents at seventy eight dollars 0:00:45.400 --> 0:00:47.960 twenty one cents a barrel. Comex school down two tenths 0:00:47.960 --> 0:00:50.240 per cent or three dollars fifty cents at eighteen twenty 0:00:50.280 --> 0:00:53.200 two seventy announced. The euro one point oh six seven 0:00:53.280 --> 0:00:55.720 zero against the dollar, British pound one point to zero 0:00:55.800 --> 0:00:58.840 four or five the end one thirty one point eight five. 0:00:59.200 --> 0:01:02.160 And that's a Bloomberg Business Flash John all right, Karen, Thanks. 0:01:02.280 --> 0:01:04.640 It is now fifties six on Wall Street. Time for 0:01:04.640 --> 0:01:08.760 our Bloomberg Law Brief, exploring legal issues in the news. Today, 0:01:08.800 --> 0:01:12.880 we're looking at the legalization of recreational marijuana. New York 0:01:12.959 --> 0:01:16.600 has opened its first legal retail weed shop in Manhattan. 0:01:16.880 --> 0:01:20.480 A Bloomberg's Caroline Hynd spoke with Ken Shay, cannabis analysts 0:01:20.520 --> 0:01:24.200 for Bloomberg Intelligence about what this means for the New 0:01:24.280 --> 0:01:27.640 York area and the country overall. It is really a 0:01:27.680 --> 0:01:29.800 big deal. I mean New York, it's a huge market. 0:01:29.800 --> 0:01:31.760 It's a highly visible market, and I think a lot 0:01:31.800 --> 0:01:34.880 of other populous areas in the United States that haven't 0:01:34.920 --> 0:01:37.040 legalized are gonna be watching this closely to see how 0:01:37.080 --> 0:01:40.440 it pulls it off. How it does. Um, New York's 0:01:40.440 --> 0:01:42.720 a large market and it has high hopes and no 0:01:42.840 --> 0:01:46.200 pun attended. It looks to its neighbor New Jersey. New Jersey, 0:01:46.520 --> 0:01:50.120 you know, legalized recreational only back in April. It's already 0:01:50.160 --> 0:01:52.480 up to a one billion dollar run rate in sales. 0:01:52.960 --> 0:01:55.840 New York's are twice the population. So if you put 0:01:55.840 --> 0:01:58.800 the mass together and you have a really big industry 0:01:59.040 --> 0:02:00.840 out of the gate that and is going to be there. 0:02:01.240 --> 0:02:04.680 Products been around a long time, um, and so yeah, 0:02:04.680 --> 0:02:07.080 all eyes around New York. It's well, the VIMO is 0:02:07.080 --> 0:02:09.359 a visible market to really get a sense of what's 0:02:09.400 --> 0:02:11.440 going on. You do some great analysis for us, and 0:02:11.480 --> 0:02:13.520 we always love it that sort of bringing together some 0:02:13.560 --> 0:02:16.840 of the issues that perhaps still the spending bill didn't 0:02:16.840 --> 0:02:19.360 have the marijuana banking element to it, and we saw 0:02:19.400 --> 0:02:20.800 a lot of potstocks fall in the back of that. 0:02:20.800 --> 0:02:22.960 That many still say to really grow this industry, they 0:02:22.960 --> 0:02:24.320 need to be able to get bank climbs, They need 0:02:24.360 --> 0:02:26.760 to be able to get a more easier access to capital. 0:02:26.800 --> 0:02:29.079 But I'm interested in your perspective of why we've already 0:02:29.080 --> 0:02:31.440 seen the ability when I walk outside of Bloomberg to 0:02:31.480 --> 0:02:33.840 cross the street and I can go and get edibles, 0:02:33.840 --> 0:02:37.200 I can go and buy sat marijuana related food and consumption. 0:02:37.600 --> 0:02:40.680 What is that still doing now and why has it 0:02:40.720 --> 0:02:43.160 been able to do that ahead of this sort of legalization. Well, 0:02:43.280 --> 0:02:46.400 New York has taken a different approach, put it that 0:02:46.440 --> 0:02:50.200 way than many markets and allowing, you know, the social 0:02:50.240 --> 0:02:53.440 justice theme to allow some flexibility and put it that 0:02:53.520 --> 0:02:57.040 way to some operators that won't exist in many other markets. 0:02:57.600 --> 0:03:01.160 And that's gonna at the consternation of the legal operators 0:03:01.200 --> 0:03:03.440 and the legal operators. And look, we're paying all these taxes, 0:03:03.520 --> 0:03:05.560 we're going jumping through all these hoops. We're doing a 0:03:05.600 --> 0:03:08.560 lot of things here. Help us out by enforcing the 0:03:08.800 --> 0:03:11.280 laws on the books that you know, you can't have 0:03:11.320 --> 0:03:14.079 someone down the street selling it legally and avoiding taxes. 0:03:14.160 --> 0:03:18.000 If you're going if they're regulated, I'm going to compete. Well, 0:03:18.720 --> 0:03:21.400 So that's that's really gonna be a key issue going forward. 0:03:21.440 --> 0:03:25.359 And it also made uh, you know, also discourage some 0:03:25.520 --> 0:03:27.720 other big entities from getting into the New York, New 0:03:27.800 --> 0:03:32.040 York market until they enforce those rules. And that's Bloomberg 0:03:32.080 --> 0:03:36.080 Intelligence sandalist Kench speaking with Caroline Hyde. Catch Caroline and 0:03:36.120 --> 0:03:39.680 Paul Sweeney for a special signulcast Bloomberg Markets Today that 0:03:39.760 --> 0:03:41.640 starts at ten am Wall Street time. Right here on 0:03:41.680 --> 0:03:46.120 Bloomberg Radio. Attorneys can find exceptional legal research and business 0:03:46.120 --> 0:03:50.840 development tools Bloomberg Law dot com and the Bloomberg terminal 0:03:51.120 --> 0:03:54.640 at b Law. Go Karen well John, here's another legal 0:03:54.640 --> 0:03:58.360 story we're watching. Canada's merger court ruled in favor of 0:03:58.440 --> 0:04:02.760 Roger's Communications and Shawn Communications and a key antitrust case 0:04:03.120 --> 0:04:05.120 that clears one of the final hurdles to the union 0:04:05.120 --> 0:04:08.520 of two of the nation's largest telecommunications firms. The Federal 0:04:08.520 --> 0:04:11.480 Antitrust Commissioner failed to prove that the deal would cause 0:04:11.520 --> 0:04:15.680 significant harm to competition in the industry. Where are watching 0:04:15.720 --> 0:04:18.680 futures this morning? They're lower, with S and P futures 0:04:18.720 --> 0:04:21.920 down twelve points or three tenths of up percent now 0:04:22.080 --> 0:04:24.680 and NASDAG futures don't both down about three tents of 0:04:24.760 --> 0:04:27.359 uppercent as well, with DOWN futures down ninety four points 0:04:27.400 --> 0:04:30.320 and NASDAG futures down thirty and the tenure treasury down 0:04:30.400 --> 0:04:32.880 nine thirty seconds, you know, three point eight five percent, 0:04:32.960 --> 0:04:35.279 and they yield on the two year four point three 0:04:35.560 --> 0:04:39.000 nine percent. Straight ahead, we have a check on the 0:04:39.040 --> 0:04:42.200 business headlines and all the news you need to start 0:04:42.279 --> 0:04:44.760 your day again on a day when futures are lower. 0:04:45.320 --> 0:04:52.440 This as our to a Bloomberg daybreak begins right now, markets, 0:04:52.520 --> 0:04:55.600 headlines and breaking news twenty four hours a day at 0:04:55.600 --> 0:04:59.040 Bloomberg dot com, the Bloomberg Business at Land at Bloomberg 0:04:59.080 --> 0:05:07.960 Quick taples three. He's a Bloomberg Business Flash, and I'm 0:05:08.000 --> 0:05:11.480 Karen Moscow European stocks declining along with US stock index. 0:05:11.520 --> 0:05:13.560 Future is on the final trading day of the year, 0:05:13.560 --> 0:05:15.279 and we checked the markets all day long here on 0:05:15.320 --> 0:05:18.320 Bloomberg with SNP Future is down eleven points down, Future 0:05:18.360 --> 0:05:21.320 is down eighty and NASDAG futures down to thirty two. 0:05:21.880 --> 0:05:23.960 The decks in Germany is down about six tenths of 0:05:24.000 --> 0:05:26.640 a percent. Ten year treasury down ten thirty seconds. You 0:05:26.720 --> 0:05:28.560 have three point eight five percent the yield on the 0:05:28.600 --> 0:05:31.480 two year four point three nine percent. Nine X Screwed 0:05:31.520 --> 0:05:33.240 oil is down a tenth of a percent or ten 0:05:33.320 --> 0:05:36.080 cents at seventy eight dollars thirty cents of Barrel comic 0:05:36.080 --> 0:05:38.400 school down a quarter percent or four dollars twenty cents 0:05:38.400 --> 0:05:41.760 at eighteen eighty announced. The euro one point oh six 0:05:41.760 --> 0:05:44.240 seven zero against the dollar. British found one point two 0:05:44.279 --> 0:05:46.559 zero four or five. The end is at one thirty 0:05:46.560 --> 0:05:49.920 one point nine four and Bitcoin this morning down half 0:05:49.960 --> 0:05:53.320 percent at about sixteen thousand, five hundred dollars U s 0:05:53.360 --> 0:05:56.120 n P five hundred down more than nineteen percent. This year, 0:05:56.160 --> 0:05:58.440 the NASDAC has lost about a third of its value. 0:05:58.640 --> 0:06:01.080 That's a Bloomberg business flash. Now here's Nuchael Bar with 0:06:01.120 --> 0:06:03.599 more on les's going on around the world. Michael Karen. 0:06:03.640 --> 0:06:05.800 A House committee is set to release six years of 0:06:05.880 --> 0:06:09.400 Donald Trump's tax returns today, holding back the curtain on 0:06:09.480 --> 0:06:12.520 financial records that the former president fought for years to 0:06:12.600 --> 0:06:15.880 keep secret. Southwest Airlines says it expects to return to 0:06:15.920 --> 0:06:19.920 her normal flight schedule today. The declaration comes after nearly 0:06:19.960 --> 0:06:23.760 a week of cancelations and delays for travelers. Thursday Night football, 0:06:23.839 --> 0:06:27.880 the Cowboys be the Titans thirteen in the NBA. The 0:06:27.880 --> 0:06:31.080 next loss the Celtics won. In the NHL. The Rangers 0:06:31.080 --> 0:06:33.640 lost in a shootout to the Lightning to one. The 0:06:33.760 --> 0:06:36.920 Islanders won, the Capitals lost in overtime to the Senators 0:06:36.960 --> 0:06:40.200 for three, and soccer legend Pale has died after a 0:06:40.240 --> 0:06:43.480 battle with cancer. He was eighty two Global news twenty 0:06:43.480 --> 0:06:46.080 four hours a day on air and on Bloomberg Quicktake, 0:06:46.240 --> 0:06:49.080 powered by more than twenty seven hundred journalists analysts more 0:06:49.080 --> 0:06:52.920 than a hundred twenty countries. Michael Barr, this is Bloomberg, John, Michael, 0:06:52.920 --> 0:06:54.880 thank you. It is now five forty two on the 0:06:54.920 --> 0:06:59.000 Wall Street. This is Bloomberg Daybreak. I'm John Tucker alongside 0:06:59.040 --> 0:07:00.880 Karen Bosco. Le's take a look at some of the 0:07:00.880 --> 0:07:05.040 other stories that are making news this morning. TC Energy 0:07:05.200 --> 0:07:09.160 says it's restarted the ruptured segment of its Keystone oil pipeline, 0:07:09.520 --> 0:07:12.360 as follows a spill that forced a conduits shot for 0:07:12.400 --> 0:07:15.040 more than three weeks. Let's get the story from Bloomberg's 0:07:15.080 --> 0:07:17.800 Charlie Pillett. The company put out a statement saying the 0:07:17.880 --> 0:07:22.520 Keystone pipeline is now operational to all delivery points. The 0:07:22.640 --> 0:07:26.240 massive crude pipeline, which can carry more than six hundred 0:07:26.240 --> 0:07:29.640 thousand barrels a day, is a major conduit linking oil 0:07:29.680 --> 0:07:33.320 fields in Canada to refiners in the Gulf Coast. A 0:07:33.400 --> 0:07:36.000 leak on a section of the pipeline that extends to 0:07:36.040 --> 0:07:40.280 the Cushing, Oklahoma storage hub spilled fourteen thousand barrels of 0:07:40.280 --> 0:07:43.400 oil in Kansas in early December, becoming one of the 0:07:43.520 --> 0:07:48.080 largest onshore US oil spills since two thousand ten, according 0:07:48.120 --> 0:07:52.760 to government data. In New York, Charlie Pellet Bloomberg Daybreak, Great, Charlie, 0:07:52.760 --> 0:07:55.280 thank you well. Let's stick with energy. Oil is set 0:07:55.320 --> 0:07:59.080 to end a volatile year modestly higher as investors expect 0:07:59.120 --> 0:08:01.520 a rebound in sh on ease demand and race for 0:08:01.720 --> 0:08:05.239 less Russian crewde demand for oil and China is in question, 0:08:05.280 --> 0:08:08.360 and traders are racing for more reaction from Russia to 0:08:08.480 --> 0:08:11.080 sanctions on its energy exports. We take a look at 0:08:11.080 --> 0:08:13.280 oil right now and nine night screwed is down about 0:08:13.280 --> 0:08:15.400 two tents of a percent, down twelve cents. It's it's 0:08:15.440 --> 0:08:18.640 seventy eight dollars twenty eight cents a barrel. And taking 0:08:18.640 --> 0:08:22.080 a closer look at China, new data reveals economic activity 0:08:22.560 --> 0:08:26.600 rebounding in several cities where COVID infections likely already peaked. 0:08:27.000 --> 0:08:29.360 That's in spite of many parts of the country grappling 0:08:29.400 --> 0:08:33.240 with staring cases. The number of passengers using subways in 0:08:33.320 --> 0:08:37.800 major cities like Beijing, Wuhan, and shane Do rose sharply 0:08:38.000 --> 0:08:41.280 in the week through Wednesday. That's assigned residents are returning 0:08:41.320 --> 0:08:44.520 to work, shopping and eating at restaurants, a measure of 0:08:44.520 --> 0:08:48.200 traffic congestion that also increased significantly with the same period 0:08:48.679 --> 0:08:51.360 well John meantime, China could see as many as twenty 0:08:51.360 --> 0:08:54.520 five thousand deaths a day from COVID nineteen next month. 0:08:54.520 --> 0:08:57.560 As according to Air Affinity, which expects deaths to peak 0:08:57.600 --> 0:09:00.320 around January twenty three. It says daily infect into all 0:09:00.440 --> 0:09:03.360 likely peaked ten days before that had around three point 0:09:03.480 --> 0:09:06.959 seven million cases. Yeah. Right, now, let's turn to the 0:09:07.000 --> 0:09:10.280 crypto space and talk digital tokens. In the wake of 0:09:10.360 --> 0:09:13.320 the ft X collapse of the past year has seen 0:09:13.320 --> 0:09:17.360 crypto prices drown in the sludge of an extended crypto 0:09:17.400 --> 0:09:20.000 winter and the fd X to baccle that is for 0:09:20.120 --> 0:09:23.800 the future of the space maybe in question. So what's next? 0:09:23.880 --> 0:09:26.880 We are joined by our execuest Everett Millman, the chief 0:09:26.920 --> 0:09:30.280 market analyst at Gainesville Coins, has that for an introduction 0:09:30.360 --> 0:09:33.719 the Everett Um. After the fraud and bankruptcies, is there 0:09:34.480 --> 0:09:39.240 light at the end of the tunnel? Well will almost 0:09:39.280 --> 0:09:42.160 certainly go down as the worst year on record for 0:09:42.200 --> 0:09:45.320 crypto um and I think in the wake of the 0:09:45.440 --> 0:09:49.160 fd X fallout, we have seen that major institutions are 0:09:49.200 --> 0:09:52.600 beginning to dip their toe back into the crypto space. 0:09:53.080 --> 0:09:57.040 Fidelity has opened crypto trading, Goldman Sacks have been buying 0:09:57.120 --> 0:10:00.240 up some of those distressed with the currency companies, and 0:10:00.559 --> 0:10:04.720 both HSBC and JP Morgan have trademarked UM their own 0:10:04.800 --> 0:10:09.200 crypto wallets or crypto exchanges. So we are seeing institutions 0:10:09.559 --> 0:10:12.640 at least come back into the fold as the sell 0:10:12.720 --> 0:10:16.439 off has continued, And also governments both Russia and Japan 0:10:16.880 --> 0:10:20.680 are exploring removing their bands on crypto, and the Bank 0:10:20.760 --> 0:10:25.160 for International Settlements is finalizing a regulation that banks can 0:10:25.160 --> 0:10:28.400 now hold two percent of their reserves in bitcoin. So 0:10:28.520 --> 0:10:31.200 I don't think, even with all of the fear and 0:10:31.280 --> 0:10:34.600 uncertainty and doubt um, that cryptocurrency is going to be 0:10:35.200 --> 0:10:37.480 completely wiped off the face of the earth anytime soon. 0:10:37.720 --> 0:10:40.920 I can you separate the space between the actual tokens 0:10:41.000 --> 0:10:46.080 and the coins and the platforms. Oh, that's a fascinating 0:10:46.160 --> 0:10:48.920 question because as is now, we've still see that the 0:10:49.040 --> 0:10:52.679 major use cases for a lot of these tokens is 0:10:52.720 --> 0:10:56.439 simply for speculative trading vehicles, you know, trading back and forth. 0:10:56.840 --> 0:10:59.720 But the on Shaine data for bitcoin in particular shows 0:10:59.800 --> 0:11:04.079 that the majority of wallets have been holding lately. Um 0:11:04.120 --> 0:11:06.439 It's been at least six months since any bitcoin is 0:11:06.520 --> 0:11:09.200 mood in or out of those wallets. So that does 0:11:09.400 --> 0:11:13.640 somewhat lend credence to the idea that perhaps bitcoin good 0:11:13.640 --> 0:11:17.199 operate as a store of value if this lack of 0:11:17.280 --> 0:11:20.240 volatility that we've seen at the bitcoin price continues. But 0:11:20.280 --> 0:11:23.680 there's still a major problem, obviously a major political issue 0:11:24.040 --> 0:11:27.040 with how to regulate these exchanges UM and kind of 0:11:27.120 --> 0:11:30.560 unlock the value of this new technology and innovation in 0:11:30.600 --> 0:11:34.120 a way that does not promote kind of these black 0:11:34.240 --> 0:11:37.600 box operations like we're happening at at fd X and 0:11:37.679 --> 0:11:40.920 and perhaps at finance. Well, you mentioned bitcoin and the 0:11:41.840 --> 0:11:45.480 h I would argue that there's a degree of stability 0:11:45.600 --> 0:11:50.800 with with that particular token relatively to the others. Um, 0:11:51.080 --> 0:11:54.920 why is that so relatively stable? And how many of 0:11:54.960 --> 0:12:00.880 those other coins are total bologna? Well, Um, there's certainly 0:12:00.920 --> 0:12:04.440 some bologne out there, to be sure. UM. And bitcoin 0:12:04.520 --> 0:12:09.240 does distinguish itself by having some underlying fundamental to the 0:12:09.280 --> 0:12:13.760 fact that it does convert electricity and energy into a 0:12:13.880 --> 0:12:16.559 type of currency. UM. And the fact that there's only 0:12:16.559 --> 0:12:19.319 going to be twenty million total bitcoin, so that that 0:12:19.440 --> 0:12:21.800 sort of digital scarcity gives it a bit of a 0:12:21.920 --> 0:12:26.199 leg up on other less mature crypto projects. But again, 0:12:26.240 --> 0:12:29.760 I do think that regulation is going to be key here. UM. 0:12:29.840 --> 0:12:32.439 Bitcoin is a bit of a tricky case because it 0:12:32.559 --> 0:12:37.000 sort of operates under its own sovereignty. UM. But if 0:12:37.040 --> 0:12:41.040 governments decide that they'd like to take a harsher um 0:12:41.080 --> 0:12:46.320 approach to regulating bitcoin and other other tokens. Um, it's 0:12:46.320 --> 0:12:50.199 simply going to push that activity and that innovation into 0:12:50.400 --> 0:12:53.640 safer jurisdictions, um to push it into a black market. 0:12:53.960 --> 0:12:56.600 And so I don't think that exactly solves the problem, 0:12:56.679 --> 0:12:59.480 but it is obviously something that policymakers are going to 0:12:59.520 --> 0:13:03.160 continued to look at. Um. It's not simply going away 0:13:03.280 --> 0:13:07.199 all right. Advocates of the space have argued certainly against regulation. 0:13:07.280 --> 0:13:09.800 That's that's out the window at this point. What's the 0:13:09.840 --> 0:13:14.959 regulatory landscape ahead? Well, there has to be some sort 0:13:15.000 --> 0:13:20.439 of oversight akin to what already goes on in financial markets. Um. 0:13:20.520 --> 0:13:23.679 We've seen with the fd X the bottle that a 0:13:23.720 --> 0:13:27.800 lot of what was going on was not particularly crypto 0:13:27.920 --> 0:13:32.360 specific fraud. It was just sort of simply plane vanilla fraud, 0:13:32.720 --> 0:13:35.240 if there is such a thing. UM. So obviously the 0:13:35.280 --> 0:13:38.360 failures there is because of the lack of regulation, I 0:13:38.640 --> 0:13:41.440 would argue, UM. And so again it raises this question, 0:13:41.840 --> 0:13:45.160 do we simply want to push all the activity into 0:13:45.400 --> 0:13:49.439 other countries or into kind of black markets where regulators 0:13:49.480 --> 0:13:52.360 don't have a clear view of what's going on, or 0:13:52.440 --> 0:13:57.000 will the cryptocurrency community UM accept some level of regulation 0:13:57.120 --> 0:14:02.040 that will engender more confident because clear that trust and 0:14:02.080 --> 0:14:05.160 confidence in this space has been decimated UM and even 0:14:05.200 --> 0:14:09.160 with some of the UH the major institutions coming back in, 0:14:09.400 --> 0:14:12.680 it's going to take months and perhaps years to build 0:14:12.760 --> 0:14:16.559 back that trust UM and I think allowing regulation or 0:14:16.800 --> 0:14:20.080 embracing regulations would be probably the biggest step for doing that. 0:14:21.600 --> 0:14:24.040 And Everett thanks a lot for joining us this morning. 0:14:24.040 --> 0:14:28.440 Everett Milma, the chief market analyst at Gainesville Coins. As 0:14:28.480 --> 0:14:31.120 look at the price of bitcoin this morning, down about 0:14:31.160 --> 0:14:34.560 six tenths of a percent to sixteen thousand, four hundred 0:14:34.920 --> 0:14:38.320 eight and down. Future is right now down seventy three 0:14:38.560 --> 0:14:42.240 smp E many futures they're down ten, but AzaC futures 0:14:42.240 --> 0:14:54.880 down twenty six Markets headlines and breaking news twenty four 0:14:54.920 --> 0:14:57.920 hours a day at Bloomberg dot Com, the Bloomberg Business 0:14:58.000 --> 0:15:07.600 apt and at Bloomberg Quicktape. He's a Bloomberg Business Flash 0:15:08.040 --> 0:15:11.320 and I'm Karen Moscow. European stocks declining along with US 0:15:11.320 --> 0:15:14.520 stock index futures on the final trading day of the year, 0:15:14.600 --> 0:15:16.680 which again would close out the worst year in more 0:15:16.720 --> 0:15:19.280 than a decade for global equities and bonds, and We 0:15:19.360 --> 0:15:21.640 checked the markets all day long year on Bloomberg SMP 0:15:21.800 --> 0:15:25.080 futures down fifteen points or four tents of uppercent, Down, 0:15:25.120 --> 0:15:27.320 futures down three tens of upper cent or a hundred 0:15:27.320 --> 0:15:30.160 five points, and NASDAG futures down four tens of uppercent 0:15:30.440 --> 0:15:32.880 for forty three points. The decks in Germany's down six 0:15:32.880 --> 0:15:35.880 tenths of uppercent ten. Your treasury down nine thirty seconds, 0:15:35.960 --> 0:15:37.880 yield three point eight four percent, the yield on the 0:15:37.920 --> 0:15:40.800 two year four point three nine percent. Nine Next, Screwed 0:15:40.840 --> 0:15:42.880 oil is down three tens of upper cent or twenty 0:15:42.880 --> 0:15:45.240 two cents, and seventy eight dollars eighteen cents of barrel 0:15:45.440 --> 0:15:48.120 comic school down a quarter percent or four dollars forty cents. 0:15:48.120 --> 0:15:51.120 At eighteen twenty one, sixty announced the euro one point 0:15:51.280 --> 0:15:53.640 six six five against the dollar, British pound one point 0:15:53.680 --> 0:15:56.320 to zero four one, they had one thirty two point 0:15:56.320 --> 0:15:59.840 oh three and bitcoins down half percent at sixteen thousand, 0:16:00.040 --> 0:16:02.920 five hundred dollars. And that's a Bloomberg business flash. Now 0:16:02.960 --> 0:16:05.520 here's Michael Barr with more on what's going on around 0:16:05.520 --> 0:16:08.200 the world. Michael did Morning, Good Morning Karen. A House 0:16:08.240 --> 0:16:11.920 committee will release six years of Donald Trump's tax returns today. 0:16:12.400 --> 0:16:14.960 The Ways and Means COMMITTEEVO did last week to release 0:16:15.040 --> 0:16:18.960 the returns with some redactions of sensitive and information. Southwest 0:16:18.960 --> 0:16:21.760 Airline says it expects to return to her normal flight 0:16:21.840 --> 0:16:25.360 schedule today. The declaration comes after nearly a week of 0:16:25.400 --> 0:16:29.160 cancelations and delanyees for travelers and Thursday night football, the 0:16:29.160 --> 0:16:32.880 Cowboys beat the Titans twenty seven thirteen in the NBA. 0:16:33.000 --> 0:16:35.480 The Knicks lost the Celtics one in the NHL, the 0:16:35.600 --> 0:16:37.960 Rangers lost in a shootout to the Lightning to one. 0:16:38.280 --> 0:16:40.800 The Islanders won the Capitals lost in overtime to the 0:16:40.840 --> 0:16:44.440 Senators for three, and soccer legend Pelee has died after 0:16:44.480 --> 0:16:47.480 a battle with cancer. He was eighty two Global News 0:16:47.480 --> 0:16:49.960 twenty four hours a day on air and on Bloomberg 0:16:50.040 --> 0:16:53.080 Quick Take, powered by more than twenty seven hundred journalists 0:16:53.080 --> 0:16:55.880 and analysts and more than a hundred twenty countries. Michael 0:16:55.880 --> 0:16:58.920 Barr and this is Bloomberg, John Michael twenty three on 0:16:59.000 --> 0:17:01.720 Wall Street on Johnson Record, This is Bloomberg Day Break. 0:17:01.960 --> 0:17:05.240 Let's turn to politics now, where Democrats turn over control 0:17:05.359 --> 0:17:08.199 of the House to Republicans in the new year. That 0:17:08.359 --> 0:17:11.760 raises another of questions about Ukraine funding and who will 0:17:11.800 --> 0:17:16.000 be Majority Leader of the House. US Representative Brendan Boyle, 0:17:16.320 --> 0:17:19.879 a Democrat from Pennsylvania, Vania. He is addressing those questions 0:17:20.240 --> 0:17:24.840 and the controversy surrounding Representative elected George Santos. He spoke 0:17:24.880 --> 0:17:28.119 with Bloomberg's Madison Mills. I do want to talk about 0:17:28.640 --> 0:17:33.000 Ukraine Fundane. I wonder is is there potentially a danger 0:17:33.160 --> 0:17:37.120 of US draining funding and investment for something like Ukraine. 0:17:37.640 --> 0:17:39.439 Are you concerned about that or do you think that 0:17:39.480 --> 0:17:44.640 potentially Zelenski's visit, you know, mitigated any concerns from Republicans 0:17:44.680 --> 0:17:49.040 about diving deep into that funding was President Lensky said 0:17:49.200 --> 0:17:51.960 in his speech, and I was present for it in 0:17:52.000 --> 0:17:54.359 the House chamber. This is not charity. This is in 0:17:54.480 --> 0:17:58.280 American interests that we are aiding Ukraine in this fight. 0:17:59.040 --> 0:18:02.840 The United States has proudly led the free world ever 0:18:02.920 --> 0:18:05.800 since the end of World War Two in standing up 0:18:05.840 --> 0:18:09.560 to first Soviet and now Russian aggression. UM. I'm very 0:18:09.600 --> 0:18:13.000 proud of the fact that so far support for helping 0:18:13.080 --> 0:18:16.720 Ukraine has been bipartisan, especially in the Senate. Obviously on 0:18:16.760 --> 0:18:20.320 the House side, you do have a vocal minority of 0:18:20.359 --> 0:18:24.400 House Republicans that have been against supporting aid to Ukraine. 0:18:24.840 --> 0:18:27.879 My concern is as we get into next year, that 0:18:27.960 --> 0:18:32.080 if Kevin McCarthy somehow holds on by his fingernails being speaker, 0:18:32.600 --> 0:18:36.600 he will be so beholden to the ultra magic extremists 0:18:36.640 --> 0:18:40.240 like Marjorie Taylor Green Um that in fact he may 0:18:40.359 --> 0:18:43.959 be looking at a way out in terms of supporting Ukraine. 0:18:44.080 --> 0:18:47.520 Are you planning to object to seating George Santos on 0:18:47.640 --> 0:18:51.040 January three? Um? I think the real question here is 0:18:51.240 --> 0:18:55.520 what will Republican Conference leader Kevin McCarthy do. He has 0:18:55.560 --> 0:18:59.200 been totally silent typically when although there is not really 0:18:59.240 --> 0:19:02.520 been a situation as dramatic as Santos, but in other 0:19:03.080 --> 0:19:06.200 instances in which you've had members of the House they misbehaving, 0:19:06.440 --> 0:19:10.000 it's typically disciplined on your own side. Um, you have 0:19:10.160 --> 0:19:13.879 seen a few Congressional Republicans speak out stating the obvious 0:19:13.880 --> 0:19:17.040 that this is beyond the pail. It demands an investigation. 0:19:17.480 --> 0:19:21.200 Kevin McCarthy has been totally silent. Is he so desperate 0:19:21.240 --> 0:19:24.639 and craven to become speaker that he will just silently 0:19:24.680 --> 0:19:28.840 accept Santos's vote and really not say anything about this 0:19:28.960 --> 0:19:32.679 complete fraud. If you had degrade Kevin McCarthy's response to 0:19:32.720 --> 0:19:35.080 this so far, what what letter of grade would you 0:19:35.080 --> 0:19:37.760 give him? Well, it's either an incomplete or an s 0:19:37.880 --> 0:19:41.480 It's been completely nothing. He hasn't said one word. Uh, 0:19:41.720 --> 0:19:45.040 it's quite embarrassing actually. And you know, when you look 0:19:45.040 --> 0:19:48.159 at the Republican majority, it's it's very thin. It's the 0:19:48.200 --> 0:19:51.600 exact same slim majority that we Democrats after the last 0:19:51.600 --> 0:19:54.880 two years. As you look into know, as you look 0:19:54.920 --> 0:19:57.920 ahead two years and you consider so many Republicans will 0:19:57.920 --> 0:20:02.000 be running, especially his first term members and challenging districts, 0:20:02.480 --> 0:20:04.720 I can't imagine they feel great about the fact that 0:20:04.760 --> 0:20:07.479 they have a Republican leader who can't even do the 0:20:07.560 --> 0:20:11.040 right thing and stand up and speak out against Santas. 0:20:11.520 --> 0:20:14.760 I gotta wonder on Santas to whether and what his 0:20:14.800 --> 0:20:17.800 committee assignments might look like. What do you think about that? 0:20:18.440 --> 0:20:20.760 I think Mr Santos probably should worry a little bit 0:20:20.840 --> 0:20:24.480 more about the criminal investigations that are happening now in 0:20:24.520 --> 0:20:29.280 New York into him, as well as potential further investigations. 0:20:29.520 --> 0:20:33.000 I'm very curious to find out how exactly his campaign 0:20:33.040 --> 0:20:35.920 was funded. He has a lot of questions to answer. 0:20:37.720 --> 0:20:42.399 And uh. That was Democratic Congress from Brendan Boyle speaking 0:20:42.440 --> 0:20:44.960 with Madison Mills on Bloomberg South on Catch of the 0:20:44.960 --> 0:20:48.600 program weekdays, five pm Eastern on Bloomberg Radio, and here 0:20:48.640 --> 0:20:51.400 the full interview on the daily high pressure off shore 0:20:51.440 --> 0:20:54.360 should result in some sunshine developing across the Tristate area 0:20:54.400 --> 0:20:56.280 today and that will lead to temperatures climbing up to 0:20:56.320 --> 0:20:58.760 about fifty fifty five this afternoon as we go well 0:20:58.800 --> 0:21:03.600 above normal, increasingly Cloudie tonight, Cloudie tomorrow, with rain late 0:21:03.640 --> 0:21:06.040 to day fifty to fifty five. Unfortunately, rains in the 0:21:06.080 --> 0:21:08.960 forecast for New Year's evelos forty five to fifty clearing 0:21:08.960 --> 0:21:11.760 though on New Year's Day. I'm Rob Carolvin with your 0:21:11.760 --> 0:21:18.639 three day forecast on Bloomberg eleven three oh broadcasting live 0:21:18.800 --> 0:21:22.760 from the Bloomberg Interactive Broker Studio in New York, Bloomberg 0:21:22.760 --> 0:21:26.840 eleving free to Washington, d C. Bloomberg one to Boston, 0:21:26.960 --> 0:21:30.400 Bloomberg one oh six, one to San Francisco, Bloomberg nine 0:21:30.440 --> 0:21:33.240 sixty to the Country, Sirius XM Chad A one nine 0:21:33.640 --> 0:21:36.800 and around the globe. The Bloomberg Business at and Bloomberg 0:21:36.880 --> 0:21:46.399 Radio dot com. This is Bloomberg Daybreak and good morning. 0:21:46.440 --> 0:21:48.639 We are coming up to five thirty on Wall Street. 0:21:48.680 --> 0:21:51.600 I'm Karen Moscow ant I'm John Tucker. Were brought to 0:21:51.600 --> 0:21:54.960 you by your daily reminder from Innovation Refunds to apply 0:21:55.040 --> 0:21:58.400 for a payroll tax refund if you're a smaller medium 0:21:58.480 --> 0:22:02.720 sized business was impact to by COVID nineteen Innovation Refunds. 0:22:02.720 --> 0:22:06.440 Clients already claimed over two billion dollars in payroll tax refunds. 0:22:06.640 --> 0:22:09.879 Get started at get refunds dot com. And we are 0:22:09.960 --> 0:22:12.359 just about four hours away from the open of US trading. 0:22:12.440 --> 0:22:13.760 Let's geet you up to date on the news you 0:22:13.800 --> 0:22:16.320 need to know at this hour. US futures are lower 0:22:16.359 --> 0:22:18.600 this morning as we enter the final trading day of 0:22:18.640 --> 0:22:22.119 the year, mark the worst year in more than a 0:22:22.200 --> 0:22:25.680 decade for global equities and bonds. Fed tightening and hot 0:22:25.720 --> 0:22:30.200 inflation weight on sentiment. David Bohnson, chief investment officer at 0:22:30.200 --> 0:22:32.720 the Bohnson Group, says to heat to look for some 0:22:33.000 --> 0:22:35.600 gains in the new year, even if there is a recession. 0:22:36.160 --> 0:22:38.480 You can have a recession, you can have a bear 0:22:38.600 --> 0:22:41.560 market and still have some things in the market do well. 0:22:41.920 --> 0:22:44.640 When other things are not that's really what I expect 0:22:44.640 --> 0:22:47.840