1 00:00:01,760 --> 00:00:05,039 Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 2 00:00:05,120 --> 00:00:09,000 Speaker 1: day Break for Wednesday, December fourteen two. Coming up this hour, 3 00:00:09,160 --> 00:00:11,840 Speaker 1: the FED makes its final policy decision of the year 4 00:00:11,880 --> 00:00:14,800 Speaker 1: with a fifty basis point hike, expecting the UK inflation 5 00:00:14,840 --> 00:00:16,720 Speaker 1: dips from a forty one year high. You head of 6 00:00:16,800 --> 00:00:19,640 Speaker 1: tomorrow's Bank of England decision. F t X co founder 7 00:00:19,680 --> 00:00:22,880 Speaker 1: Sam Bankman Freed plans to fight extradition to the US, 8 00:00:23,000 --> 00:00:25,560 Speaker 1: and the US plans to add more than thirty Chinese 9 00:00:25,560 --> 00:00:28,680 Speaker 1: companies to its trade blacklist. I'm Amy Morris. A three 10 00:00:28,680 --> 00:00:32,040 Speaker 1: alarm fire at a police evidence warehouse could burn for days, 11 00:00:32,240 --> 00:00:34,760 Speaker 1: and our area is buckling up for more winter weather 12 00:00:34,840 --> 00:00:37,559 Speaker 1: this week. I'm John stash Ourn sports another big baseball 13 00:00:37,640 --> 00:00:40,600 Speaker 1: free agent signing. The Islanders and Devils both lost the 14 00:00:40,600 --> 00:00:45,720 Speaker 1: World Cup semifinals, and today that's all s trended ahead 15 00:00:45,800 --> 00:00:49,360 Speaker 1: on Bloomberg day Break on Bloomberg eleven, Free on New York, 16 00:00:49,560 --> 00:00:53,240 Speaker 1: Bloomberg nine nine one, Washington d C, Bloomberg one O 17 00:00:53,360 --> 00:00:57,960 Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius x 18 00:00:57,960 --> 00:01:00,960 Speaker 1: AM one nineteen and around the World Old on Bloomberg 19 00:01:01,000 --> 00:01:08,199 Speaker 1: Radio dot Com and via the Bloomberg Business App. Good morning, 20 00:01:08,200 --> 00:01:11,080 Speaker 1: I'm Nathan Hagar and I'm Karen Moscow. In US stock 21 00:01:11,120 --> 00:01:14,200 Speaker 1: index futures are little change this morning. It is five 22 00:01:14,240 --> 00:01:16,080 Speaker 1: the one on Wall Street, and we check the markets 23 00:01:16,080 --> 00:01:18,400 Speaker 1: all day long here at Bloomberg Radio. Again, U s 24 00:01:18,480 --> 00:01:20,720 Speaker 1: and P futures are a little change, so are down 25 00:01:20,760 --> 00:01:24,160 Speaker 1: in NASDAG futures. The decks in Germany lower down six 26 00:01:24,200 --> 00:01:27,040 Speaker 1: tents of a percent. The ten year treasury of three 27 00:01:27,040 --> 00:01:29,399 Speaker 1: thirty seconds heel three point four eight percent, and they 28 00:01:29,480 --> 00:01:33,759 Speaker 1: yield on the two year four point one eight percent. Nathan, Karen. 29 00:01:34,000 --> 00:01:37,680 Speaker 1: It is a big week for critical economic events and 30 00:01:37,800 --> 00:01:42,240 Speaker 1: it continues today with the Federal Reserves final policy decision 31 00:01:42,319 --> 00:01:45,520 Speaker 1: of two. Let's get our coverage started with a preview 32 00:01:45,560 --> 00:01:49,640 Speaker 1: now from Bloomberg Economics correspondent Michael McKee. Beneficials are going 33 00:01:49,680 --> 00:01:52,240 Speaker 1: to raise the nation's benchmark lending rate by half a 34 00:01:52,280 --> 00:01:55,840 Speaker 1: percentage point today. The question is what will they do next? 35 00:01:56,280 --> 00:02:00,240 Speaker 1: After two consecutive soft CPI reports, investors are lower their 36 00:02:00,280 --> 00:02:03,080 Speaker 1: bets on how high the Fed goes and for how long. 37 00:02:03,640 --> 00:02:06,800 Speaker 1: That puts the focus on policymakers. New economic and interest 38 00:02:06,880 --> 00:02:10,320 Speaker 1: rate forecasts and the so called dot plot that shows 39 00:02:10,360 --> 00:02:12,480 Speaker 1: where they think rates will need to be at the 40 00:02:12,600 --> 00:02:15,679 Speaker 1: end of next year. In September, the median dot was 41 00:02:15,720 --> 00:02:18,919 Speaker 1: at four point six markets now see them at four 42 00:02:18,960 --> 00:02:23,280 Speaker 1: point three percent after rate cuts beginning in July. Investors 43 00:02:23,280 --> 00:02:25,840 Speaker 1: will also focus on how chair j Pal sees the 44 00:02:25,919 --> 00:02:29,280 Speaker 1: data and the outlook. Will he again warn against over 45 00:02:29,320 --> 00:02:33,079 Speaker 1: confidence on Wall Street? Michael McKee Bloomberg Daybreak, All right, Mike, 46 00:02:33,080 --> 00:02:35,840 Speaker 1: thank you well after today. The Feds and next steps 47 00:02:35,880 --> 00:02:39,200 Speaker 1: depend on the path of economic data, so says influential 48 00:02:39,200 --> 00:02:43,280 Speaker 1: economist and Stanford University professor John Taylor. If it's fifty 49 00:02:43,280 --> 00:02:47,280 Speaker 1: basis points uh at this decision, then don't lead on 50 00:02:47,320 --> 00:02:51,399 Speaker 1: a twenty five or seventy five or another fifty. It depends, 51 00:02:51,639 --> 00:02:54,160 Speaker 1: you know, the idea of Monterrey policies. It depends on 52 00:02:54,240 --> 00:02:57,440 Speaker 1: what's happened to inflation, what's happened to real o'connorwey. We 53 00:02:57,520 --> 00:03:01,079 Speaker 1: hope we don't have another downturn and and we can 54 00:03:01,120 --> 00:03:04,639 Speaker 1: avoid that if in fact, that says, look, if inflation 55 00:03:04,680 --> 00:03:08,560 Speaker 1: picks up, we will take action. Stanford professor John Taylor 56 00:03:08,600 --> 00:03:11,280 Speaker 1: may have a comments in an interview with Bloomberg's Kathleen Hey. 57 00:03:11,400 --> 00:03:14,120 Speaker 1: Stay tuned for complete coverage of today's FED decision on 58 00:03:14,160 --> 00:03:17,240 Speaker 1: a special edition of Bloomberg Surveillance. It all begins at 59 00:03:17,280 --> 00:03:20,680 Speaker 1: one thirty pm Wall Street Time on Bloomberg Radio and Television. 60 00:03:20,760 --> 00:03:23,160 Speaker 1: We're caring that FED decision comes after a key gauge 61 00:03:23,200 --> 00:03:26,040 Speaker 1: of consumer prices posted its smallest gain in more than 62 00:03:26,080 --> 00:03:29,000 Speaker 1: a year, and that fueled a surge in stocks. At 63 00:03:29,080 --> 00:03:32,440 Speaker 1: yesterday's opening bell, the SMP five hundred rows as much 64 00:03:32,440 --> 00:03:35,120 Speaker 1: as two point eight percent before pairing those games to 65 00:03:35,200 --> 00:03:38,760 Speaker 1: close higher by three quarters of one percent. Garg Choundry 66 00:03:38,840 --> 00:03:42,200 Speaker 1: is Black Rock's head of I shares investment strategy. Policy 67 00:03:42,360 --> 00:03:45,440 Speaker 1: is looking everything that the FED has been doing, as 68 00:03:45,520 --> 00:03:48,040 Speaker 1: difficult as that has been for the markets. What the 69 00:03:48,080 --> 00:03:51,000 Speaker 1: inflation data today shows us that it is It is 70 00:03:51,040 --> 00:03:54,000 Speaker 1: going in the right direction bike rocks. Garge Choundry notes 71 00:03:54,040 --> 00:03:56,920 Speaker 1: that overall CPI increased one tenth of a percent from 72 00:03:56,960 --> 00:03:59,240 Speaker 1: the prior month, bringing inflation to an annual rate of 73 00:03:59,280 --> 00:04:02,560 Speaker 1: seven point and percent. Nathan Inflation is also a front 74 00:04:02,640 --> 00:04:05,040 Speaker 1: end center in the UK with fresh data, I head 75 00:04:05,080 --> 00:04:07,600 Speaker 1: up tomorrow's Bank of England decision and let's go alive 76 00:04:07,640 --> 00:04:10,120 Speaker 1: to London and get the latest with Bloomberg's un Parts 77 00:04:10,200 --> 00:04:13,080 Speaker 1: you and good morning, Good morning Karen, Nathan. Another of 78 00:04:13,080 --> 00:04:16,640 Speaker 1: the world's biggest economies is seeing a softening of inflation. 79 00:04:16,680 --> 00:04:19,599 Speaker 1: Consumer prices in the UK rose ten points seven percent 80 00:04:19,720 --> 00:04:22,719 Speaker 1: in November from a year earlier. That was down from 81 00:04:22,839 --> 00:04:25,839 Speaker 1: eleven point one percent in the previous month and lower 82 00:04:25,839 --> 00:04:28,360 Speaker 1: than forecasts. The data will be studied by the Bank 83 00:04:28,400 --> 00:04:31,080 Speaker 1: of England ahead of their rate decision tomorrow, but with 84 00:04:31,160 --> 00:04:34,640 Speaker 1: inflation more than five times over targets, no one is 85 00:04:34,720 --> 00:04:37,880 Speaker 1: yet calling victory in this particular battle in London. I'm 86 00:04:37,880 --> 00:04:40,080 Speaker 1: you and parts Bom Big day Break, Okay you and thanks. 87 00:04:40,160 --> 00:04:43,040 Speaker 1: Let's turn down to the latest developments on Sam Bankman free, 88 00:04:43,160 --> 00:04:46,479 Speaker 1: the FTX co founder, he plans to fight extradition to 89 00:04:46,520 --> 00:04:50,040 Speaker 1: the US. Bloomberg Steve Rappaport joins US Live with the details. 90 00:04:50,040 --> 00:04:53,000 Speaker 1: Good morning Steve, Good morning Nathan and Karen. Bringing Sam 91 00:04:53,000 --> 00:04:55,960 Speaker 1: Bankman freed home from the Caribbean might require help from 92 00:04:56,000 --> 00:04:59,160 Speaker 1: across the pond. The Bahamas is a British Commonwealth country, 93 00:04:59,200 --> 00:05:01,880 Speaker 1: and final appe us on extradition are handled by London's 94 00:05:01,920 --> 00:05:04,920 Speaker 1: Privy Council, a formal body of advisors to the Sovereign 95 00:05:04,920 --> 00:05:08,400 Speaker 1: of the UK. While announcing the charges, Federal Prosecutor Damien 96 00:05:08,440 --> 00:05:10,719 Speaker 1: Williams had a warning for anyone who may have helped 97 00:05:10,720 --> 00:05:14,479 Speaker 1: bankman Freed, I would strongly encourage you to come see 98 00:05:14,560 --> 00:05:17,159 Speaker 1: us before we come see you. If history is an indicator, 99 00:05:17,200 --> 00:05:20,200 Speaker 1: Bankman Freed may have bought plenty of time. Eight men 100 00:05:20,200 --> 00:05:23,000 Speaker 1: facing drug charges in the US fought extradition from the 101 00:05:23,040 --> 00:05:25,520 Speaker 1: Bahamas for more than a decade. Live in New York. 102 00:05:25,520 --> 00:05:28,560 Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks well. 103 00:05:28,560 --> 00:05:31,160 Speaker 1: Another round of hearings on the ft X collapse is 104 00:05:31,200 --> 00:05:33,960 Speaker 1: coming up today in the Senate. New fd X CEO 105 00:05:34,080 --> 00:05:37,600 Speaker 1: John Ray testified yesterday before the House Financial Services Committee. 106 00:05:37,680 --> 00:05:40,400 Speaker 1: Republican Committee member Andy Barr joined us to give his 107 00:05:40,480 --> 00:05:44,640 Speaker 1: takeaway on the hearing. There was absolute concentration of control 108 00:05:45,680 --> 00:05:48,880 Speaker 1: of this business, in these various businesses, in the hands 109 00:05:48,920 --> 00:05:52,080 Speaker 1: of a very small group of in his in his words, 110 00:05:52,480 --> 00:05:57,240 Speaker 1: grossly inexperienced and unsophisticated individuals. We also spoke with the 111 00:05:57,240 --> 00:06:00,719 Speaker 1: Democratic Committee member Brad Sherman, who says Sam Bankman Phrad's 112 00:06:00,839 --> 00:06:04,760 Speaker 1: downfall points to a need for more crypto regulation. When 113 00:06:05,720 --> 00:06:09,440 Speaker 1: you're dealing with an enterprise the whole purpose of which 114 00:06:09,880 --> 00:06:14,120 Speaker 1: is to come up with a currency system that allows 115 00:06:14,160 --> 00:06:18,800 Speaker 1: you to evade American financial law. Congressman Brad's going to 116 00:06:18,880 --> 00:06:21,440 Speaker 1: be dealing with people who are going to evade American 117 00:06:21,480 --> 00:06:25,239 Speaker 1: financial law. Congressman Brad Sherman and Andy Barr were guests 118 00:06:25,279 --> 00:06:28,279 Speaker 1: on Bloomberg Sound Alma Joe Matthew. Catch the program weekdays 119 00:06:28,279 --> 00:06:31,120 Speaker 1: at five pm Eastern on Bloomberg Radio. Right, let's turn 120 00:06:31,160 --> 00:06:34,080 Speaker 1: to geopolitical news this morning, Karen, we are seeing rising 121 00:06:34,120 --> 00:06:38,400 Speaker 1: tensions between the world's two economic superpowers. The Biden administration 122 00:06:38,400 --> 00:06:41,200 Speaker 1: will put China's leading maker of memory chips and more 123 00:06:41,279 --> 00:06:45,000 Speaker 1: than thirty other Chinese companies on its trade blacklist that 124 00:06:45,040 --> 00:06:49,520 Speaker 1: would prevent them from buying certain American technology. SMP futures 125 00:06:49,600 --> 00:06:52,880 Speaker 1: down to point, Dow futures up a point, Nastack futures 126 00:06:52,880 --> 00:06:55,440 Speaker 1: are lower by eight points ahead of the Fed decision. Today, 127 00:06:55,680 --> 00:06:59,840 Speaker 1: local headlines and a check of sports. Next, This is Bloomberg. 128 00:07:03,480 --> 00:07:05,640 Speaker 1: It's a five oh seven on Wall Street where thirty 129 00:07:05,640 --> 00:07:08,000 Speaker 1: one degrees in Central Park is gonna stay sunny, and 130 00:07:08,120 --> 00:07:10,840 Speaker 1: Chile again today has only near forty down to the 131 00:07:10,880 --> 00:07:13,520 Speaker 1: low thirties. Tonight, Amy Morris is here with more on 132 00:07:13,600 --> 00:07:15,600 Speaker 1: what's going on in New York and around the world. 133 00:07:15,720 --> 00:07:18,800 Speaker 1: Good morning Amy, Good morning Nathan. A three alarm fire 134 00:07:18,880 --> 00:07:21,880 Speaker 1: has led the partial collapse of a New York Police 135 00:07:21,920 --> 00:07:25,400 Speaker 1: Department evidence center in Brooklyn. The fire was first reported 136 00:07:25,400 --> 00:07:29,200 Speaker 1: by Police Department contractors working inside the Auto Pound. Acting 137 00:07:29,280 --> 00:07:32,280 Speaker 1: Chief Jeffrey Maddery says the workers saw the flames on 138 00:07:32,280 --> 00:07:34,560 Speaker 1: one of the evidence shelves and called for help. They 139 00:07:35,280 --> 00:07:39,520 Speaker 1: they alerted the Police Department personnel inside. Everyone backed out. 140 00:07:39,680 --> 00:07:43,120 Speaker 1: FD was alerted. Fire officials say everything inside the facility 141 00:07:43,160 --> 00:07:45,520 Speaker 1: has either been lost or damaged, and that fire is 142 00:07:45,560 --> 00:07:49,440 Speaker 1: expected to continue burning for days. President Biden has signed 143 00:07:49,480 --> 00:07:53,120 Speaker 1: the Historic Respect for Marriage Act, cementing federal protections for 144 00:07:53,240 --> 00:07:56,640 Speaker 1: same sex and inter racial marriages into law. Who do 145 00:07:56,760 --> 00:07:59,840 Speaker 1: you love and would you be loyal with that first 146 00:08:00,080 --> 00:08:04,800 Speaker 1: you love? It's not more complicated than that. The law 147 00:08:04,960 --> 00:08:08,520 Speaker 1: recognized that everyone should have the right to answer those 148 00:08:08,600 --> 00:08:15,280 Speaker 1: questions for themselves without the government interference. President Biden says 149 00:08:15,360 --> 00:08:18,680 Speaker 1: the law requires interracial marriage and same sex marriage be 150 00:08:18,760 --> 00:08:23,000 Speaker 1: recognized as legal in every state. Now we told you yesterday. 151 00:08:23,040 --> 00:08:25,760 Speaker 1: New York is encouraging people to mask up, but New 152 00:08:25,840 --> 00:08:28,520 Speaker 1: Jersey won't be putting a mask mad aid in place. Well, 153 00:08:28,520 --> 00:08:31,880 Speaker 1: now we're learning kinectic. Governor Ned Lamont also says there's 154 00:08:31,880 --> 00:08:34,360 Speaker 1: no need at this point for a mandate. The Hartford 155 00:08:34,360 --> 00:08:37,679 Speaker 1: Current reports. Lamont says he sees no immediate concerns, but 156 00:08:37,880 --> 00:08:40,600 Speaker 1: he says you should wear a mask if you're showing 157 00:08:40,640 --> 00:08:43,000 Speaker 1: any symptoms, and you should get a booster if you 158 00:08:43,040 --> 00:08:46,600 Speaker 1: haven't yet. The chief epidemiologist at Hartford health Care, however, 159 00:08:46,640 --> 00:08:48,920 Speaker 1: says you should wear a mask indoors as flu and 160 00:08:49,000 --> 00:08:51,760 Speaker 1: COVID cases rise. Looks like we are going to get 161 00:08:51,800 --> 00:08:54,760 Speaker 1: some more snow later in the week, mostly rain, with 162 00:08:54,880 --> 00:08:58,000 Speaker 1: light snow in some areas. Most of that well Dland. 163 00:08:58,000 --> 00:09:00,320 Speaker 1: It's going to be kind of gusty wind too. That 164 00:09:00,360 --> 00:09:03,560 Speaker 1: could make for a nasty Friday morning commute. Global News 165 00:09:03,600 --> 00:09:05,920 Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake, 166 00:09:06,080 --> 00:09:09,280 Speaker 1: powered by more than twenty seven hundred journalists and analysts 167 00:09:09,320 --> 00:09:12,400 Speaker 1: in more than one d twenty countries. I'm Amy Morris. 168 00:09:12,440 --> 00:09:19,800 Speaker 1: This is Bloomberg, Nathan al Amy Morris. Thank you five 169 00:09:19,840 --> 00:09:22,640 Speaker 1: oh nine on Wall Street Time for the Bloomberg Sports Update, 170 00:09:22,679 --> 00:09:25,480 Speaker 1: brought to you by Trice Stay Downey, Good morning, John 171 00:09:25,520 --> 00:09:28,640 Speaker 1: Stash Hour, Morning Nathan. Another example of a baseball player 172 00:09:28,679 --> 00:09:32,080 Speaker 1: who turned down a contract offer, hit free agency and 173 00:09:32,200 --> 00:09:35,320 Speaker 1: made a ton more money. That happened with Aaron Judge, 174 00:09:35,400 --> 00:09:39,000 Speaker 1: Andrew Bogarts and now Carlos. Korea used and offered him 175 00:09:39,040 --> 00:09:41,920 Speaker 1: five years a hundred and sixty million dollars. Korea just 176 00:09:41,960 --> 00:09:46,400 Speaker 1: signed with San Francisco thirteen years, three hundred and fifty million. 177 00:09:46,480 --> 00:09:50,640 Speaker 1: Between Korea, Bogarts and Trade Turner. Three shortstops just signed 178 00:09:50,640 --> 00:09:53,640 Speaker 1: contracts worth nine hundred and thirty million. The Devil's the 179 00:09:53,679 --> 00:09:56,160 Speaker 1: last month had that thirteen game winning Streek have now 180 00:09:56,200 --> 00:09:58,600 Speaker 1: lost their last three, beaten home by Dallas for to one. 181 00:09:58,640 --> 00:10:01,200 Speaker 1: The Islanders lost in Boston four three in a shootout, 182 00:10:01,240 --> 00:10:05,240 Speaker 1: Washington in Chicago and a milestone goal turn over in 183 00:10:05,400 --> 00:10:13,800 Speaker 1: fraud and Manfustavus shots a store and its sala. It's 184 00:10:13,840 --> 00:10:19,280 Speaker 1: a hundred goals in the National Hockey LEAGUEFK the call 185 00:10:19,440 --> 00:10:22,400 Speaker 1: two more goals in Ovechkin passes Gordy how for second 186 00:10:22,400 --> 00:10:25,480 Speaker 1: all time. He's still going strong at age thirty seven. 187 00:10:25,520 --> 00:10:27,120 Speaker 1: He had a hat trick last night. We'll see if 188 00:10:27,600 --> 00:10:30,400 Speaker 1: vescan can break a record that most felt was unreachable 189 00:10:30,480 --> 00:10:34,200 Speaker 1: Wayne Gretzky's eight hundred and ninety four career goals. NBA 190 00:10:34,320 --> 00:10:37,280 Speaker 1: Celtics beat the Lakers in overtime Utah in the New 191 00:10:37,360 --> 00:10:39,959 Speaker 1: Orleans seven game winning streak battle to the last two champs. 192 00:10:40,040 --> 00:10:42,440 Speaker 1: Milwaukee beat Golden State. That Nick's play tonight in Chicago. 193 00:10:42,559 --> 00:10:46,440 Speaker 1: The World Cup. It's Defendie Champ France and Cinderella Morocco. 194 00:10:46,559 --> 00:10:50,280 Speaker 1: The winner plays Argentina in Sunday's final. Mississippi State is 195 00:10:50,320 --> 00:10:53,000 Speaker 1: going to play its bowl game, the school saying that's 196 00:10:53,040 --> 00:10:56,160 Speaker 1: what coach Mike Leach would have wanted. Leech just passed 197 00:10:56,160 --> 00:10:59,360 Speaker 1: away at sixty one. Leech was a true football innovator 198 00:10:59,520 --> 00:11:03,760 Speaker 1: and a true character. John Bloomberg Sports, Thank you, John 199 00:11:03,800 --> 00:11:06,240 Speaker 1: Bloomberg Sports was brought to you by Audie. Don't let 200 00:11:06,320 --> 00:11:09,720 Speaker 1: someone else drive off in the Audi model you've always wanted. 201 00:11:09,880 --> 00:11:12,680 Speaker 1: Visit your local Try State Audie dealer to get behind 202 00:11:12,720 --> 00:11:15,800 Speaker 1: the wheel of yours today, or visit Autie Offers dot 203 00:11:15,880 --> 00:11:19,480 Speaker 1: Com for more information. Markets in a kind of wait 204 00:11:19,559 --> 00:11:22,600 Speaker 1: in C mode ahead of the Federal Reserve decision later 205 00:11:22,720 --> 00:11:25,800 Speaker 1: on this afternoon, we have SMP futures right now down 206 00:11:26,080 --> 00:11:30,120 Speaker 1: one point down, futures down three, NASAC futures lower by 207 00:11:30,200 --> 00:11:32,640 Speaker 1: eight points. That is a little changed to the downside 208 00:11:32,679 --> 00:11:36,000 Speaker 1: across the board. Tenure treasury is little changed as well. 209 00:11:36,080 --> 00:11:38,319 Speaker 1: The yield on the benchmark ten year not three point 210 00:11:38,400 --> 00:11:40,480 Speaker 1: five percent, and the yield on the two year is 211 00:11:40,559 --> 00:11:43,920 Speaker 1: four point one eight percent. Nimex screwed up seven tenths 212 00:11:44,000 --> 00:11:47,840 Speaker 1: percent seventy five nine cents a barrel. Comics gold down 213 00:11:48,080 --> 00:11:52,600 Speaker 1: three tenths percent eighteen announced. The euro one point zero 214 00:11:52,720 --> 00:11:55,200 Speaker 1: six six seven against the dollar, the end trading at 215 00:11:55,200 --> 00:11:58,640 Speaker 1: the moment at one thirty five point zero three. This 216 00:11:59,080 --> 00:12:03,400 Speaker 1: is Bloomberg. It's sound five twelve on Wall Street. You're 217 00:12:03,440 --> 00:12:06,680 Speaker 1: listening to Bloomberg daybreak on Fed decision Day. The final 218 00:12:06,880 --> 00:12:12,200 Speaker 1: policy move of two comes our way two pm, Wall 219 00:12:12,240 --> 00:12:14,240 Speaker 1: Street time ahead of it. We are very pleased to 220 00:12:14,280 --> 00:12:18,520 Speaker 1: be joined by Jennifer Lee, senior economist at BMO Capital Markets. 221 00:12:18,679 --> 00:12:21,640 Speaker 1: Jen are we going to get anything other than fifty 222 00:12:21,640 --> 00:12:24,560 Speaker 1: basis points? It seems like that's pretty well baked into 223 00:12:24,600 --> 00:12:27,400 Speaker 1: this market. Oh, good morning. You know what um we 224 00:12:27,600 --> 00:12:30,120 Speaker 1: have been. We're sticking with our fifty basis point move 225 00:12:30,320 --> 00:12:34,160 Speaker 1: and our our call, and certainly yesterday's a CPI report, 226 00:12:34,200 --> 00:12:37,599 Speaker 1: which um, wow, like that was when we were I 227 00:12:37,600 --> 00:12:39,400 Speaker 1: can think of was wow after that's I've seen the 228 00:12:39,480 --> 00:12:43,600 Speaker 1: headline increase much better than expected. I will certainly help 229 00:12:43,800 --> 00:12:46,120 Speaker 1: solidify what he hinted at a couple of weeks ago. 230 00:12:46,280 --> 00:12:48,240 Speaker 1: So I think we should all get ready to hear 231 00:12:48,280 --> 00:12:50,760 Speaker 1: an updated version of that phrase. It's time to start 232 00:12:51,280 --> 00:12:53,400 Speaker 1: moderating the pace of great heights. And that's not probably 233 00:12:53,440 --> 00:12:55,679 Speaker 1: what he's going to say again this afternoon, but I 234 00:12:55,720 --> 00:12:59,880 Speaker 1: would be very cautious to know, to to expect any 235 00:13:00,040 --> 00:13:02,920 Speaker 1: think to doublish. You know, it would be very much 236 00:13:02,920 --> 00:13:06,839 Speaker 1: of an abrupt shift if he changes his his his 237 00:13:07,040 --> 00:13:10,040 Speaker 1: views on this one number. So you're not expecting that 238 00:13:10,240 --> 00:13:12,520 Speaker 1: the FED chairman is going to say wow the way 239 00:13:12,600 --> 00:13:15,400 Speaker 1: you did to that CPI reported. Is that what I'm 240 00:13:15,400 --> 00:13:19,080 Speaker 1: hearing from you, I think he will, you know, be optimistic. 241 00:13:19,280 --> 00:13:21,240 Speaker 1: You know, you know they they already said that about 242 00:13:21,240 --> 00:13:24,360 Speaker 1: the October on CPI and hearing too. You know, having 243 00:13:24,440 --> 00:13:28,800 Speaker 1: to modest UH increases in a row is encouraging. But 244 00:13:29,800 --> 00:13:33,120 Speaker 1: his key freeze was UH was that he needed substantially 245 00:13:33,160 --> 00:13:36,160 Speaker 1: more evidence, because you remember he said that that that 246 00:13:36,960 --> 00:13:39,880 Speaker 1: November three, This was that he would take substantially more 247 00:13:39,960 --> 00:13:43,040 Speaker 1: evidence to give them comfort that inslation that is actually declining. Now. 248 00:13:43,080 --> 00:13:46,040 Speaker 1: Whether two or two months is enough, um, I highly 249 00:13:46,200 --> 00:13:48,640 Speaker 1: highly doubt it, um, But you know, certainly this is 250 00:13:48,679 --> 00:13:50,719 Speaker 1: a step in the right direction. Are you expecting any 251 00:13:50,760 --> 00:13:52,839 Speaker 1: major changes then to the language in the f O 252 00:13:52,960 --> 00:13:56,800 Speaker 1: m C statement, Any idea that we could see a 253 00:13:57,000 --> 00:14:00,240 Speaker 1: little bit more explicit thought from the Fed on whether 254 00:14:00,240 --> 00:14:02,960 Speaker 1: they're gonna take their foot off the gas even further 255 00:14:03,200 --> 00:14:06,839 Speaker 1: from policy tightening. I think they're going to continue, you know, 256 00:14:07,000 --> 00:14:10,319 Speaker 1: to to be cautious because it's it's just again, I 257 00:14:10,400 --> 00:14:13,360 Speaker 1: still think it's too early to call the all clear 258 00:14:13,880 --> 00:14:17,200 Speaker 1: on inflation. But at least he will he'll probably emphasize 259 00:14:17,240 --> 00:14:19,320 Speaker 1: the point that rates will still need to be higher, 260 00:14:20,280 --> 00:14:23,080 Speaker 1: higher than they expecting, you know, sometime ago. So even 261 00:14:23,120 --> 00:14:25,320 Speaker 1: though they're going to be moderating the pace of rate heights, 262 00:14:25,560 --> 00:14:27,240 Speaker 1: you know, instead of Sunday five, you know, word of 263 00:14:27,640 --> 00:14:29,800 Speaker 1: getting fifty, and we have to remember fifty is still 264 00:14:29,920 --> 00:14:32,600 Speaker 1: quite a bit as well. Um. But at least the 265 00:14:33,000 --> 00:14:35,840 Speaker 1: pace is starting to modest to moderately uh slow, But 266 00:14:36,040 --> 00:14:38,600 Speaker 1: they probably stay higher for longer be and then they 267 00:14:38,640 --> 00:14:41,160 Speaker 1: would need a lot more evidence before they're comfortable, and 268 00:14:41,400 --> 00:14:44,280 Speaker 1: she starts to at least stop raising rates and then 269 00:14:44,320 --> 00:14:46,880 Speaker 1: at some point um cutting rates. But us I don't 270 00:14:46,880 --> 00:14:48,880 Speaker 1: think that's gonna be part of the language or part 271 00:14:48,920 --> 00:14:51,480 Speaker 1: of the vocabulary just yet. What do you think we'll 272 00:14:51,520 --> 00:14:55,640 Speaker 1: get from the fens of economic projections? And how much 273 00:14:55,680 --> 00:14:58,520 Speaker 1: stock do you put in those projections given how difficult 274 00:14:58,600 --> 00:15:02,360 Speaker 1: it really has been to forecast this economy this year. Oh, 275 00:15:02,480 --> 00:15:04,760 Speaker 1: I'll take it with a huge fistical assault. I mean, 276 00:15:05,080 --> 00:15:07,120 Speaker 1: and you know it's it's it's not a crisi of criticism. 277 00:15:07,200 --> 00:15:08,920 Speaker 1: It's just as he's just pointed out. I mean, it's 278 00:15:08,960 --> 00:15:12,120 Speaker 1: so difficult to make accurate calls these days. And you know, 279 00:15:12,240 --> 00:15:14,560 Speaker 1: I don't think anyone was calling for such a modest 280 00:15:14,560 --> 00:15:16,840 Speaker 1: CPO number, for example, But I think they're going to 281 00:15:16,960 --> 00:15:20,880 Speaker 1: probably um, you know, um um lower the I want 282 00:15:20,880 --> 00:15:23,320 Speaker 1: to be staries that they lower the the GP forecast 283 00:15:23,440 --> 00:15:26,080 Speaker 1: a little bit as well, But certainly I will I 284 00:15:26,160 --> 00:15:28,880 Speaker 1: will see this, you know, that soft landing, sort of 285 00:15:28,960 --> 00:15:31,680 Speaker 1: shallow downturn call. You know, it is looking better and better, 286 00:15:31,800 --> 00:15:34,120 Speaker 1: and we might see some of that playing out in 287 00:15:34,240 --> 00:15:38,120 Speaker 1: the forecast um this afternoon. Of course, one big vexing 288 00:15:38,280 --> 00:15:41,040 Speaker 1: issue for this FED has been the ongoing tightness in 289 00:15:41,120 --> 00:15:44,560 Speaker 1: the labor market and the concern that wage pressures will 290 00:15:44,640 --> 00:15:47,120 Speaker 1: continue to feed into inflation. What do you think the 291 00:15:47,160 --> 00:15:50,160 Speaker 1: FED is going to say about where unemployment needs to 292 00:15:50,280 --> 00:15:53,960 Speaker 1: go to really tackle price pressures. So that is one 293 00:15:54,040 --> 00:15:56,400 Speaker 1: area of which he hasn't really changed his tune too much. 294 00:15:56,760 --> 00:15:59,760 Speaker 1: He continues to call the labor market very, very tight. 295 00:15:59,840 --> 00:16:02,360 Speaker 1: And of this, you know, we're still seeing various very 296 00:16:02,480 --> 00:16:05,600 Speaker 1: solid job increases on a month to month basis. But 297 00:16:05,680 --> 00:16:08,120 Speaker 1: the fact that job vacancies have have have been taking 298 00:16:08,240 --> 00:16:10,760 Speaker 1: lower UM is good news for them. And this is 299 00:16:10,800 --> 00:16:13,640 Speaker 1: all going back to the whole how I've been saying that, 300 00:16:13,960 --> 00:16:16,040 Speaker 1: you know, good is bad and bad is good. You know, 301 00:16:16,200 --> 00:16:18,440 Speaker 1: so they will continue to to point to the labor 302 00:16:18,480 --> 00:16:20,760 Speaker 1: market and they you know, and he's actually been sort 303 00:16:20,800 --> 00:16:23,440 Speaker 1: of tweaking it, actually have a standing corrected. He teaches 304 00:16:23,440 --> 00:16:25,480 Speaker 1: a little bit by saying that you know, it's um 305 00:16:25,800 --> 00:16:28,480 Speaker 1: that it needs to come down a lot more and uh, 306 00:16:28,720 --> 00:16:30,800 Speaker 1: you know before they can start up breathing a little 307 00:16:30,840 --> 00:16:33,280 Speaker 1: bit easier as well, And so far we're not seeing 308 00:16:33,360 --> 00:16:35,400 Speaker 1: that and it's going to be sometime I think before 309 00:16:35,960 --> 00:16:38,360 Speaker 1: UM you know, we we see, um, some of the 310 00:16:38,440 --> 00:16:40,720 Speaker 1: wage pressures ease a little bit now the the the 311 00:16:41,160 --> 00:16:44,640 Speaker 1: NFIB survey I think earlier this uh this week did 312 00:16:44,760 --> 00:16:48,040 Speaker 1: show that there was a smaller share of firms planning 313 00:16:48,120 --> 00:16:49,960 Speaker 1: to raise work or compa the next a few months. 314 00:16:50,000 --> 00:16:51,760 Speaker 1: So that's you know, that is a step also in 315 00:16:51,800 --> 00:16:55,280 Speaker 1: the right inflationary direction. Our last thirty seconds here, I'll 316 00:16:55,280 --> 00:16:56,920 Speaker 1: put you on the spot a little bit. When you 317 00:16:57,000 --> 00:16:59,680 Speaker 1: see inflation getting back to target. Oh, it's going to 318 00:16:59,760 --> 00:17:01,720 Speaker 1: take a few years, I think. You know, we we 319 00:17:01,840 --> 00:17:05,159 Speaker 1: still have you know, uh ss demand, I guess. And 320 00:17:05,280 --> 00:17:07,760 Speaker 1: of course this whole labor market tightness is not going 321 00:17:07,840 --> 00:17:10,760 Speaker 1: to play out. Uh, this is not helping the inflation story. 322 00:17:11,000 --> 00:17:14,800 Speaker 1: Uh um um handles, I guess. But we're gonna see 323 00:17:14,880 --> 00:17:17,560 Speaker 1: we're starting to see obviously inflation coming down, but getting 324 00:17:17,680 --> 00:17:20,760 Speaker 1: back towards the two ish range is probably something in 325 00:17:20,960 --> 00:17:26,399 Speaker 1: in a late story. Thanks as always, Jen, great getting 326 00:17:26,440 --> 00:17:30,480 Speaker 1: your thoughts. Jennifer Lee, Senior economist, BMO Capital Markets. Ahead 327 00:17:30,520 --> 00:17:32,960 Speaker 1: of the final FED decision of the year two pm, 328 00:17:33,119 --> 00:17:35,920 Speaker 1: Wall Street Time will find out where the Fed puts raids, 329 00:17:36,000 --> 00:17:38,360 Speaker 1: and of course the news conference from Chairman Powell coming 330 00:17:38,440 --> 00:17:40,879 Speaker 1: up at two thirty. We will have it all covered 331 00:17:41,040 --> 00:17:44,720 Speaker 1: for you on a special edition of Bloomberg. Surveillance begins 332 00:17:44,760 --> 00:17:47,880 Speaker 1: at one thirty pm Wall Street Time. You can catch 333 00:17:47,960 --> 00:17:52,399 Speaker 1: it all on both Bloomberg Radio and Bloomberg Television. Ahead 334 00:17:52,440 --> 00:17:55,639 Speaker 1: of it, SMP. Future is little change down, Futures up 335 00:17:55,760 --> 00:18:03,080 Speaker 1: five points, nastax, futures downten. This is Bloomberg Markets, headlines 336 00:18:03,160 --> 00:18:06,119 Speaker 1: and breaking news twenty four hours a day at Bloomberg 337 00:18:06,200 --> 00:18:09,520 Speaker 1: dot Com, the Bloomberg Business Outland at Bloomberg Quick Take. 338 00:18:10,119 --> 00:18:18,840 Speaker 1: He's a Bloomberg Business Flash and I'm kared Moscow and 339 00:18:18,960 --> 00:18:21,800 Speaker 1: futures are little change this morning as we await the 340 00:18:21,840 --> 00:18:24,800 Speaker 1: Federal Reserve interest rate decision. At a ten year treasury 341 00:18:24,920 --> 00:18:26,840 Speaker 1: is up three thirty seconds. You have three point four 342 00:18:27,000 --> 00:18:29,120 Speaker 1: nine percent. The yield on the two year four point 343 00:18:29,200 --> 00:18:31,800 Speaker 1: one eight percent, and I'm ex scret oil is of 344 00:18:31,880 --> 00:18:34,119 Speaker 1: three quarters of a percent, or fifty seven cents at 345 00:18:34,160 --> 00:18:37,200 Speaker 1: seventy five dollars ninety six cents a barrel. That's a 346 00:18:37,200 --> 00:18:40,240 Speaker 1: Bloomberg Business Flash. Now here's Amy Morris with Moore on 347 00:18:40,320 --> 00:18:42,800 Speaker 1: what's going on around the world. Amy, thank you, Careen. 348 00:18:42,880 --> 00:18:45,119 Speaker 1: Lawmakers have hammered out a deal on a framework to 349 00:18:45,200 --> 00:18:47,879 Speaker 1: fund the government this fiscal year, put in Congress on 350 00:18:48,040 --> 00:18:51,639 Speaker 1: track to avert a shutdown. The House Select Committee investigating 351 00:18:51,720 --> 00:18:53,720 Speaker 1: last year's attack on the U S Capitol will hold 352 00:18:53,720 --> 00:18:56,119 Speaker 1: its final session on Monday. They plan to vote on 353 00:18:56,160 --> 00:18:59,960 Speaker 1: criminal referrals and sports. In the NHL, Alex Ovechkin reaches 354 00:19:00,000 --> 00:19:03,720 Speaker 1: eight hundred career goals, Caps win, Devil's lose, Islanders beat 355 00:19:03,760 --> 00:19:05,840 Speaker 1: the Bruins, and in the NBA the Celtics when the 356 00:19:05,880 --> 00:19:08,320 Speaker 1: Warriors lost. Global News twenty four hours a day on 357 00:19:08,520 --> 00:19:11,040 Speaker 1: Erin on Bloomberg quick Take, powered by more than twenty 358 00:19:11,520 --> 00:19:14,600 Speaker 1: d journalists and analysts and more than one hundred twenty countries. 359 00:19:14,760 --> 00:19:17,680 Speaker 1: I'm Amy Morris, this is Bloomberg. Nathan Okay, Amy, thank 360 00:19:17,720 --> 00:19:20,080 Speaker 1: you for coming up to five twenty three on Wall Street. 361 00:19:20,080 --> 00:19:23,800 Speaker 1: I'm Nathan Hagar. This is Bloomberg Daybreak. The collapse of 362 00:19:23,920 --> 00:19:26,399 Speaker 1: f t X and the arrest of its co founder 363 00:19:26,480 --> 00:19:29,560 Speaker 1: Sam bankman Fried have raised questions about what comes next 364 00:19:29,720 --> 00:19:33,159 Speaker 1: for crypto regulation. The new CEO of f t X, 365 00:19:33,320 --> 00:19:36,040 Speaker 1: John Ray, test to find before the House Financial Services 366 00:19:36,080 --> 00:19:39,720 Speaker 1: Committee yesterday on the company's finances. After that hearing, our 367 00:19:39,800 --> 00:19:43,080 Speaker 1: Washington correspondent Joe Matthew spoke with one of the members 368 00:19:43,160 --> 00:19:46,080 Speaker 1: of the committee, Republican Andy Barr. Let's listen in to 369 00:19:46,160 --> 00:19:50,800 Speaker 1: that conversation. Now, pretty remarkable testimony today from John Ray. 370 00:19:51,240 --> 00:19:54,639 Speaker 1: Did you learn anything new? I think we did. We 371 00:19:54,720 --> 00:19:56,960 Speaker 1: knew this was a huge scandal. We knew that this 372 00:19:57,200 --> 00:20:01,560 Speaker 1: was one of the greatest frauds in America and investment history. 373 00:20:02,200 --> 00:20:05,480 Speaker 1: But what we learned was that this was a total 374 00:20:05,560 --> 00:20:10,880 Speaker 1: and complete failure of all internal controls and governance. As 375 00:20:11,160 --> 00:20:16,040 Speaker 1: uh the new CEO, Mr Ray pointed out, there was 376 00:20:16,400 --> 00:20:22,080 Speaker 1: absolute concentration of control of this business, in these various businesses, 377 00:20:22,200 --> 00:20:24,680 Speaker 1: in the hands of a very small group of in 378 00:20:24,840 --> 00:20:30,680 Speaker 1: his in his words, grossly inexperienced and unsophisticated individuals, who 379 00:20:30,920 --> 00:20:34,080 Speaker 1: who failed to implement virtually any of the systems or 380 00:20:34,119 --> 00:20:37,480 Speaker 1: control is necessary for a company that is entrusted with 381 00:20:37,600 --> 00:20:41,720 Speaker 1: other people's assets. And um, you know, the result is 382 00:20:41,960 --> 00:20:44,920 Speaker 1: a million creditors. And if you think of some of 383 00:20:45,000 --> 00:20:48,760 Speaker 1: the other scandals in American business history and Ron the 384 00:20:48,800 --> 00:20:53,440 Speaker 1: accounting scandal, or the Bernie made Off scandal, you know, 385 00:20:53,600 --> 00:20:57,359 Speaker 1: you you had a number of individuals hurt, but the 386 00:20:57,560 --> 00:21:03,360 Speaker 1: size and scale of the victims of this fraud are 387 00:21:03,600 --> 00:21:07,000 Speaker 1: enormous and really overshadow those those other scandals. Well, you 388 00:21:07,119 --> 00:21:09,560 Speaker 1: brought up this lack of accounting if if I can 389 00:21:09,760 --> 00:21:13,440 Speaker 1: even use that term in your exchange with John Ray today. Left. Listen, 390 00:21:13,520 --> 00:21:17,360 Speaker 1: there's a whole lot of uh, financial statements that are 391 00:21:17,720 --> 00:21:21,719 Speaker 1: either not audited or not available. Is that fair to say? That's? Um? 392 00:21:21,760 --> 00:21:24,080 Speaker 1: In your declaration, you stated that you did not believe 393 00:21:24,119 --> 00:21:27,440 Speaker 1: that those audited financial statements were reliable. Can you elaborate 394 00:21:27,480 --> 00:21:30,040 Speaker 1: on why you believe that to be the case. Well, 395 00:21:30,119 --> 00:21:33,280 Speaker 1: we've lost a billion dollars right of customer money, So 396 00:21:33,840 --> 00:21:37,000 Speaker 1: by definition, I don't trust a single piece of paper 397 00:21:37,040 --> 00:21:39,680 Speaker 1: in this organization. Are you surprised, Congressman, by how little 398 00:21:39,760 --> 00:21:43,080 Speaker 1: John Ray knows after a couple of weeks of of investigating, 399 00:21:43,119 --> 00:21:45,920 Speaker 1: and how little he trusts still at this point, Well, no, 400 00:21:46,119 --> 00:21:50,040 Speaker 1: because this was an unprecedented case of mismanagement and fraud 401 00:21:50,080 --> 00:21:54,680 Speaker 1: where there was a gross lack of documentation. UM. But 402 00:21:54,880 --> 00:21:57,120 Speaker 1: both in terms of you know, a lack of financial 403 00:21:57,200 --> 00:22:00,679 Speaker 1: statements to begin with, and and then the nancial statements 404 00:22:00,720 --> 00:22:04,919 Speaker 1: that are available and the word audited, Uh, he doesn't 405 00:22:04,960 --> 00:22:09,920 Speaker 1: have confidence that they are reliable. UM. And so I 406 00:22:10,040 --> 00:22:14,119 Speaker 1: think The major point that he was making was that 407 00:22:15,040 --> 00:22:19,159 Speaker 1: there's there's simply a lack of documentation, utter lack of 408 00:22:19,280 --> 00:22:22,560 Speaker 1: record keeping was what he said. And and no internal 409 00:22:22,640 --> 00:22:25,639 Speaker 1: controls UM and and the fact that there was so 410 00:22:25,800 --> 00:22:29,879 Speaker 1: much commingling of assets UH and use of customer funds 411 00:22:30,480 --> 00:22:35,840 Speaker 1: for UM risky trading UH and also UM for you know, 412 00:22:36,000 --> 00:22:40,440 Speaker 1: diversion to things like the f t X Foundation, which 413 00:22:40,560 --> 00:22:43,680 Speaker 1: was not core to the business, the various affiliates of 414 00:22:43,720 --> 00:22:47,240 Speaker 1: the f t X Foundation. There Again, this was a 415 00:22:47,320 --> 00:22:52,440 Speaker 1: man Sam Bankman Freed who basically stole money from unwinning 416 00:22:52,480 --> 00:22:56,840 Speaker 1: investors and diverted it into risky trading or other of 417 00:22:57,720 --> 00:23:01,480 Speaker 1: political or charitable causes. The resulted in massive losses for 418 00:23:01,560 --> 00:23:04,960 Speaker 1: those investors. And that was Republican House Financial Services Committee 419 00:23:05,000 --> 00:23:08,119 Speaker 1: Member Andy Barr speaking with our Washington correspondent Joe Matthew 420 00:23:08,200 --> 00:23:10,600 Speaker 1: on Bloomberg Sound On. You can catch the show weekdays 421 00:23:10,640 --> 00:23:13,520 Speaker 1: at five pm Wall Street time on Bloomberg Radio. Stick 422 00:23:13,560 --> 00:23:15,640 Speaker 1: with us for more on the hearing. Next hour, we'll 423 00:23:15,640 --> 00:23:19,719 Speaker 1: bring you Joe's conversation with Democratic Congressman Brad Sherman, who 424 00:23:19,840 --> 00:23:23,040 Speaker 1: also sits on the Financial Services Committee. Bloomberg Day Break 425 00:23:23,080 --> 00:23:25,320 Speaker 1: is brought to you by se I. Imagine your asset 426 00:23:25,400 --> 00:23:29,760 Speaker 1: management firms operational infrastructure as a competitive advantage. Let se 427 00:23:29,960 --> 00:23:32,920 Speaker 1: I show you how at se I c dot com 428 00:23:33,480 --> 00:23:36,800 Speaker 1: slash i MS. Looking ahead to the FED decision and 429 00:23:36,920 --> 00:23:40,320 Speaker 1: the market open this morning, futures aren't showing a whole 430 00:23:40,359 --> 00:23:42,600 Speaker 1: lot of movement. SMP futures are higher, but by just 431 00:23:42,720 --> 00:23:46,080 Speaker 1: two points now, futures up twenty two. Nastic futures on 432 00:23:46,160 --> 00:23:48,399 Speaker 1: the rise by three points ten. Your treasuries up to 433 00:23:48,640 --> 00:23:51,600 Speaker 1: thirty seconds now the yield three point four nine percent. 434 00:23:51,640 --> 00:23:54,639 Speaker 1: We'll get you your top stories and local headlines coming 435 00:23:54,720 --> 00:23:58,960 Speaker 1: up first. Bloomberg Meteorologist Rob Carolyn with the weather forecast. 436 00:24:00,200 --> 00:24:03,040 Speaker 1: I pressure has control. The patterns for today. Will have sunshine. 437 00:24:03,080 --> 00:24:05,119 Speaker 1: This morning, we'll load to some high cloudiness moving in 438 00:24:05,200 --> 00:24:07,879 Speaker 1: from the west and southwest. This afternoon. Highs will be 439 00:24:08,000 --> 00:24:11,080 Speaker 1: up around forty. It'll become cloudy overnight flows thirty to 440 00:24:11,200 --> 00:24:14,320 Speaker 1: thirty five. Rain arrives tomorrow afternoon. Well inland. It may 441 00:24:14,320 --> 00:24:17,240 Speaker 1: start us some wet snow heighs near forty five, rainy, 442 00:24:17,280 --> 00:24:20,600 Speaker 1: breezy Friday forty five to fifty for the high. Rob 443 00:24:20,680 --> 00:24:23,800 Speaker 1: Carolyn with your three day forecast on Bloomberg eleven three 444 00:24:23,880 --> 00:24:31,520 Speaker 1: oh broadcasting live from the Bloomberg Interactive Broker's studio in 445 00:24:31,640 --> 00:24:34,639 Speaker 1: New York. Bloomberg E Living Freedom to Washington, d C, 446 00:24:34,840 --> 00:24:38,800 Speaker 1: Bloomberg one to Boston, Bloomberg one oh six one does 447 00:24:38,800 --> 00:24:42,840 Speaker 1: San Francisco, Bloomberg sixty to the Country, Sirius XM chto 448 00:24:42,920 --> 00:24:45,800 Speaker 1: one nine team, and around the globe the Bloomberg Business 449 00:24:46,200 --> 00:24:55,720 Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. We're 450 00:24:55,720 --> 00:24:57,720 Speaker 1: coming up to five thirty on Wall Street. Good morning. 451 00:24:57,760 --> 00:25:00,560 Speaker 1: I'm Nathan Hager and I'm Karen Moskee, and we're just 452 00:25:00,640 --> 00:25:03,240 Speaker 1: about four hours away from the open of US trading. 453 00:25:03,320 --> 00:25:04,720 Speaker 1: Let's get you up to day on the news you 454 00:25:04,800 --> 00:25:06,840 Speaker 1: need to know at this hour. A big week for 455 00:25:07,000 --> 00:25:11,280 Speaker 1: critical economic events continues today with the Federal Reserve's final 456 00:25:11,400 --> 00:25:15,280 Speaker 1: interest rate decision of the year. Influential economist and Stanford 457 00:25:15,359 --> 00:25:19,199 Speaker 1: University professor John Taylor says the Central Bank cannot afford 458 00:25:19,280 --> 00:25:22,440 Speaker 1: to pause hikes too quickly. The Fed got well behind 459 00:25:22,480 --> 00:25:24,800 Speaker 1: the curve in the seventies, and we don't want to 460 00:25:24,840 --> 00:25:27,920 Speaker 1: have that situation. The inflation rate increase has been over 461 00:25:28,000 --> 00:25:31,000 Speaker 1: a shorter period of time is maybe eighteen months, So 462 00:25:31,119 --> 00:25:33,640 Speaker 1: we can do this if the Fed is determined, if 463 00:25:33,720 --> 00:25:36,120 Speaker 1: the people are supportive of the Fed, if they'd realize 464 00:25:36,160 --> 00:25:38,440 Speaker 1: this is the best way to get the inflation down. 465 00:25:38,720 --> 00:25:41,720 Speaker 1: It's not by waiting and dilly dally, and it's really 466 00:25:41,800 --> 00:25:45,080 Speaker 1: by taking the action right now. Stanford professor John Taylor 467 00:25:45,160 --> 00:25:47,360 Speaker 1: says the central banks next steps depend on the path 468 00:25:47,440 --> 00:25:50,600 Speaker 1: of economic data. Stay tuned for complete coverage today's FED 469 00:25:50,680 --> 00:25:53,359 Speaker 1: decision on a special edition of Bloomberg Surveillance. It all 470 00:25:53,400 --> 00:25:56,160 Speaker 1: begins at one thirty pm Wall Street Time on Bloomberg 471 00:25:56,280 --> 00:25:59,120 Speaker 1: Radio and television. Well, that Fed decision, Karen, comes after 472 00:25:59,200 --> 00:26:02,200 Speaker 1: Stock's got a booth. From yesterday's consumer price reading, a 473 00:26:02,320 --> 00:26:06,480 Speaker 1: key gauge of inflation posted its smallest monthly advance in 474 00:26:06,560 --> 00:26:10,000 Speaker 1: more than a year. But Kathryn Kaminski, chief researched strategist 475 00:26:10,080 --> 00:26:13,280 Speaker 1: with Alpha Simplex, says traders should expect more bumps ahead. 476 00:26:13,800 --> 00:26:16,840 Speaker 1: People are really anticipating that this will disappear a lot 477 00:26:17,000 --> 00:26:19,920 Speaker 1: quicker than say the Fed is really willing to act. 478 00:26:20,480 --> 00:26:23,159 Speaker 1: They still have to figure out how to deal with 479 00:26:23,320 --> 00:26:26,560 Speaker 1: such a big difference between their desired inflation number and 480 00:26:26,680 --> 00:26:30,320 Speaker 1: where we already are. Kathryn Kovinsky with Alpha Simplex, says 481 00:26:30,359 --> 00:26:33,080 Speaker 1: she is closely watching next steps. J Powell outlines in 482 00:26:33,200 --> 00:26:35,920 Speaker 1: today's news conference, Well now, Nathan, we moved to the 483 00:26:36,000 --> 00:26:39,680 Speaker 1: latest on disgraced FTX co founder Sam Bankman Freed. We're 484 00:26:39,800 --> 00:26:42,560 Speaker 1: learning he plans to find extradition to the US and Bloomberg. 485 00:26:42,600 --> 00:26:45,359 Speaker 1: Steve Rappaport joins US Live with Moore. Steve, good morning, 486 00:26:45,480 --> 00:26:48,359 Speaker 1: Good morning, Karen and Nathan. US authorities can lobby the 487 00:26:48,400 --> 00:26:51,320 Speaker 1: Bahamian government all they want to hand Bankman Freed over, 488 00:26:51,520 --> 00:26:54,240 Speaker 1: but a group of advisors in London has the final say. 489 00:26:54,560 --> 00:26:57,520 Speaker 1: That's because the island is a British Commonwealth, potentially tying 490 00:26:57,600 --> 00:26:59,840 Speaker 1: up the case for years if Bankman Freed takes his 491 00:27:00,000 --> 00:27:02,359 Speaker 1: fight all the way to the Privy Council. Meantime, of 492 00:27:02,400 --> 00:27:05,359 Speaker 1: Bahamian judge denied bankt Free's request for bail, deeming him 493 00:27:05,359 --> 00:27:08,880 Speaker 1: a flight risk. An extradition hearing is scheduled for February eighth, 494 00:27:09,119 --> 00:27:11,920 Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Day Break. 495 00:27:11,960 --> 00:27:13,960 Speaker 1: All right, Steve, thank you. On a political note this morning, 496 00:27:14,000 --> 00:27:17,399 Speaker 1: the Biden administration's ramping up tensions with China, planning to 497 00:27:17,480 --> 00:27:20,399 Speaker 1: put China's leading maker of memory chips, and more than 498 00:27:20,480 --> 00:27:24,119 Speaker 1: thirty other companies on its trade blacklist that would prevent 499 00:27:24,200 --> 00:27:27,479 Speaker 1: them from buying certain American technology. All right, let's get 500 00:27:27,520 --> 00:27:29,359 Speaker 1: you have to date on how stocks are faring this 501 00:27:29,680 --> 00:27:32,240 Speaker 1: morning is and P futures are higher up a tenth 502 00:27:32,280 --> 00:27:35,280 Speaker 1: of a percent. They're up three points, and our future 503 00:27:35,400 --> 00:27:37,359 Speaker 1: is also up almost a tenth of upper cent, or 504 00:27:37,359 --> 00:27:40,280 Speaker 1: twenty nine points, and ASDAG futures up about the same 505 00:27:40,320 --> 00:27:42,760 Speaker 1: of nine points ten. Your treasury of three thirty seconds, 506 00:27:42,800 --> 00:27:45,000 Speaker 1: the three point four nine percent in the yield on 507 00:27:45,040 --> 00:27:47,639 Speaker 1: the two year four point one seven percent, and n 508 00:27:47,640 --> 00:27:49,760 Speaker 1: i'm ex scrud oil is at one point one percent 509 00:27:49,840 --> 00:27:52,159 Speaker 1: of eighty two cents at seventy six dollars twenty one 510 00:27:52,240 --> 00:27:55,160 Speaker 1: cents of barrel. Try to head your latest local headlines 511 00:27:55,280 --> 00:28:04,080 Speaker 1: plus a check of sports. And this is Bloomberg. All right, Karen, Thanks, 512 00:28:04,119 --> 00:28:06,200 Speaker 1: It's five thirty one on Wall Street and Amy Morris 513 00:28:06,359 --> 00:28:07,520 Speaker 1: is here with a look at what's going on in 514 00:28:07,600 --> 00:28:11,040 Speaker 1: New York and around the world. Amy, good morning, Good morning, Nathan. 515 00:28:11,080 --> 00:28:13,800 Speaker 1: A New York Police Department evidence center in a warehouse 516 00:28:13,960 --> 00:28:17,320 Speaker 1: in Brooklyn has partially collapsed after a three alarm fire 517 00:28:17,440 --> 00:28:21,520 Speaker 1: broke out yesterday. Fire chief John Hodgens says everything inside 518 00:28:21,560 --> 00:28:24,359 Speaker 1: the facility has either lost or damage. This building is 519 00:28:24,440 --> 00:28:27,720 Speaker 1: not really a very sturdy type of building. It's a 520 00:28:28,240 --> 00:28:33,120 Speaker 1: metal building with trust construction, which has a launched collapse potential, 521 00:28:33,200 --> 00:28:35,679 Speaker 1: which is why we fact on thembers out of the building. 522 00:28:35,920 --> 00:28:39,080 Speaker 1: The fire is expected to keep earning for days. Lawmakers 523 00:28:39,120 --> 00:28:40,960 Speaker 1: have hammered out a deal in a framework to fund 524 00:28:41,000 --> 00:28:43,760 Speaker 1: the government this fiscal years, and a Republican leader, Mitch 525 00:28:43,840 --> 00:28:46,720 Speaker 1: McConnell says they have to be done by December two, 526 00:28:47,000 --> 00:28:49,680 Speaker 1: intend not to be back here between Christmas and New 527 00:28:49,760 --> 00:28:53,040 Speaker 1: Year's and if we can't meet that deadline, would be 528 00:28:53,160 --> 00:28:57,800 Speaker 1: happy to pass a short term cr in two early 529 00:28:57,880 --> 00:29:00,160 Speaker 1: next year. McConnell says a short term bill is the 530 00:29:00,280 --> 00:29:03,120 Speaker 1: most likely solution and that lawmakers will likely take up 531 00:29:03,160 --> 00:29:06,520 Speaker 1: an omnibus spending bill in the new year. Advocates calling 532 00:29:06,520 --> 00:29:09,040 Speaker 1: on a federal judge to immediately pause New York City's 533 00:29:09,080 --> 00:29:13,880 Speaker 1: initiative to involuntarily hospitalize those suffering from mental health episodes. 534 00:29:14,200 --> 00:29:17,280 Speaker 1: Miranda Van Dalen with New York Lawyers for Public Interests 535 00:29:17,320 --> 00:29:20,760 Speaker 1: says the mayor's plan is unconstitutional and violates the Americans 536 00:29:20,800 --> 00:29:23,520 Speaker 1: with disabilities that people are now scared to leave their 537 00:29:23,640 --> 00:29:26,880 Speaker 1: homes because they think that they may get picked up 538 00:29:26,920 --> 00:29:30,880 Speaker 1: by the police and involuntarily transported to a hospital for 539 00:29:30,920 --> 00:29:34,040 Speaker 1: psychiatric evaluation. New York Mayor Adams says it's not a 540 00:29:34,080 --> 00:29:36,600 Speaker 1: police let initiative and officers are being trained on who 541 00:29:36,640 --> 00:29:39,760 Speaker 1: would meet the criteria. Sandy Hook School massacre took place 542 00:29:39,800 --> 00:29:42,200 Speaker 1: ten years ago to day. Twenty children and six adults 543 00:29:42,240 --> 00:29:45,640 Speaker 1: were killed. In June, President Biden signed a law into 544 00:29:45,840 --> 00:29:50,400 Speaker 1: into law, a landmark gun legislation package bolstering mental health programs. 545 00:29:50,920 --> 00:29:53,200 Speaker 1: Global News twenty four hours a day on airand on 546 00:29:53,320 --> 00:29:56,440 Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred 547 00:29:56,520 --> 00:29:59,400 Speaker 1: journalists and analysts and more than one hundred twenty countries. 548 00:30:00,120 --> 00:30:08,080 Speaker 1: Any Morris, this is Bloomberg, Nathan. Thanks Amy three on 549 00:30:08,120 --> 00:30:10,200 Speaker 1: Wall Street time for the Bloomberg Sports Update, brought to 550 00:30:10,240 --> 00:30:13,120 Speaker 1: you by tri State out He here's John Stenshower. All right, Nathan, 551 00:30:13,200 --> 00:30:15,640 Speaker 1: it's great to be a free agent shortstop. Three of 552 00:30:15,720 --> 00:30:19,440 Speaker 1: them just signed contracts worth nine hundred and thirty million dollars. 553 00:30:19,520 --> 00:30:21,640 Speaker 1: First it was Trade Turner to the Phillies, and then 554 00:30:21,720 --> 00:30:25,040 Speaker 1: Xander Bogars to San Diego. Carlos Carea headed to the 555 00:30:25,120 --> 00:30:28,840 Speaker 1: San Francisco Giants thirteen years, three hundred and fifty million, 556 00:30:28,920 --> 00:30:31,680 Speaker 1: the Giants using money they had originally hoped to use 557 00:30:31,760 --> 00:30:34,920 Speaker 1: on Aaron Judge. The Yankees remained quiet other than keeping 558 00:30:35,040 --> 00:30:37,480 Speaker 1: Judge on the ice. Devil's cooling off lost at home 559 00:30:37,560 --> 00:30:40,479 Speaker 1: to Dallas four one, their third straight lost. Islanders in Boston, 560 00:30:40,520 --> 00:30:42,880 Speaker 1: with the Bruins have only lost once all season. The 561 00:30:42,920 --> 00:30:45,560 Speaker 1: Bruins won for three in a shootout hat trick for 562 00:30:45,640 --> 00:30:48,400 Speaker 1: Alex Ovechkin and Washington's win. The last of the three 563 00:30:48,800 --> 00:30:51,160 Speaker 1: was career goal number eight hundred. Nicks go for a 564 00:30:51,200 --> 00:30:54,400 Speaker 1: fifth straight win tonight in Chicago. Marocco has made it 565 00:30:54,440 --> 00:30:56,920 Speaker 1: to the World Cup semifinals by allowing only one goal 566 00:30:57,000 --> 00:30:59,320 Speaker 1: in five games. That was an own goal put in 567 00:30:59,440 --> 00:31:02,440 Speaker 1: by their own player. They've already upset Spain in Portugal. 568 00:31:02,520 --> 00:31:06,360 Speaker 1: Today Morocco takes on defending champion France. The winner faces 569 00:31:06,480 --> 00:31:09,880 Speaker 1: Argentina in Sunday's final. Sunday Night, huge game for the 570 00:31:09,960 --> 00:31:13,520 Speaker 1: Giants in Washington. They just had that tie with the Commanders, 571 00:31:13,560 --> 00:31:15,800 Speaker 1: so the two teams were tied in the standings. Brian 572 00:31:15,880 --> 00:31:18,640 Speaker 1: Day Boles team winless in the last four games. It's 573 00:31:18,640 --> 00:31:21,520 Speaker 1: a long season. There's quite a bit of adversity throughout it. 574 00:31:21,600 --> 00:31:23,680 Speaker 1: Maybe it's you know, for some teams, it's in the beginning, 575 00:31:23,760 --> 00:31:26,120 Speaker 1: for some teams, it's the middle, for other teams at 576 00:31:26,160 --> 00:31:27,840 Speaker 1: the end. You know, we're going through a little bit 577 00:31:27,880 --> 00:31:30,240 Speaker 1: of it right now, and I think it's important to 578 00:31:30,560 --> 00:31:34,760 Speaker 1: stay consistent um do the things that you need to 579 00:31:34,800 --> 00:31:37,400 Speaker 1: do to try to win games. Washington only one loss 580 00:31:37,440 --> 00:31:39,840 Speaker 1: in the last eight games. Jet Sunday host Detroit. The 581 00:31:39,920 --> 00:31:42,040 Speaker 1: Lions have won five of the last six. John Stash 582 00:31:42,480 --> 00:31:45,760 Speaker 1: Bloomberg Sports Nathan. Thanks John Bloomberg Sports Spot to you 583 00:31:45,880 --> 00:31:48,200 Speaker 1: by Audie. Don't let someone else drive off in the 584 00:31:48,280 --> 00:31:52,120 Speaker 1: Audi model you've always wanted. Visit your local Tri State 585 00:31:52,200 --> 00:31:55,520 Speaker 1: Audie dealer to get behind the wheel of yours today, 586 00:31:55,800 --> 00:32:02,040 Speaker 1: or visit Autie Offers dot com for more information on 587 00:32:02,120 --> 00:32:04,520 Speaker 1: Wall Street time for the Tri State Business Report. Here 588 00:32:04,560 --> 00:32:09,440 Speaker 1: with that Bloomberg's Cory Commuters are spending more time on buses, trains, 589 00:32:09,520 --> 00:32:13,080 Speaker 1: and metros as people travel longer distances between work and 590 00:32:13,160 --> 00:32:15,760 Speaker 1: home and continue to avoid rush hour crowds in the 591 00:32:15,840 --> 00:32:18,880 Speaker 1: wake of the pandemic. The average commute increased by four 592 00:32:19,000 --> 00:32:21,640 Speaker 1: minutes in New York City as well as Toronto and 593 00:32:21,760 --> 00:32:26,800 Speaker 1: Milan this year compared to Bowshalth investors lost a legal 594 00:32:26,920 --> 00:32:29,800 Speaker 1: fight to block the planned spinoff of its eye care business, 595 00:32:30,040 --> 00:32:32,920 Speaker 1: which they alleged was an improper shifting of assets to 596 00:32:33,040 --> 00:32:36,440 Speaker 1: protect the company from lawsuits. Of Superior court judge in 597 00:32:36,520 --> 00:32:39,640 Speaker 1: Somerset County, New Jersey, ruled it would not be proper 598 00:32:39,720 --> 00:32:43,080 Speaker 1: to intervene because the spinoff was not imminent. New York 599 00:32:43,240 --> 00:32:46,320 Speaker 1: is getting closer to welcoming a new high end skyscraper. 600 00:32:46,520 --> 00:32:50,200 Speaker 1: Co Star reports One Madison Avenue, from Manhattan's biggest office 601 00:32:50,320 --> 00:32:54,560 Speaker 1: landlord sl Green Realty, celebrated its topping out on Tuesday. 602 00:32:54,840 --> 00:32:57,720 Speaker 1: The building which broke ground back in two thousand twenty 603 00:32:57,800 --> 00:33:01,880 Speaker 1: has landed tech giants IBM as anchored tenant, Magrew Bloomberg, 604 00:33:01,920 --> 00:33:05,240 Speaker 1: Trying State Business Reboard, IMD Corey, Thank you ed. It 605 00:33:05,400 --> 00:33:09,400 Speaker 1: is six on Wall Street. The following is an editorial 606 00:33:09,560 --> 00:33:13,040 Speaker 1: from Bloomberg Opinion. This editorial was written by the Bloomberg 607 00:33:13,160 --> 00:33:16,959 Speaker 1: Editorial Board. Is the age of nuclear fusion finally dawning? 608 00:33:17,400 --> 00:33:21,000 Speaker 1: After decades of research, scientists have been making serious progress. 609 00:33:21,400 --> 00:33:24,640 Speaker 1: This week came news of the latest milestone. Scientists in 610 00:33:24,720 --> 00:33:28,040 Speaker 1: California recently induced a fusion reaction that produced a net 611 00:33:28,200 --> 00:33:31,440 Speaker 1: energy gain. In other words, it generated more power than 612 00:33:31,520 --> 00:33:34,920 Speaker 1: it consumed. Net gain has been the elusive loadstar of 613 00:33:35,000 --> 00:33:38,320 Speaker 1: fusion research since the nineteen fifties. Realizing it should give 614 00:33:38,360 --> 00:33:41,080 Speaker 1: a major boost to global research efforts and offer a 615 00:33:41,160 --> 00:33:46,200 Speaker 1: tantilizing glimpse of fusion's real world possibilities. As the science advances, 616 00:33:46,440 --> 00:33:50,720 Speaker 1: global cooperation will be essential, and above all, governments must 617 00:33:50,720 --> 00:33:53,280 Speaker 1: avoid the sort of red tape that has needlessly held 618 00:33:53,360 --> 00:33:57,000 Speaker 1: up traditional fission projects. Unlocking the power of the stars 619 00:33:57,240 --> 00:34:00,120 Speaker 1: will be no easy feat. This editorial was written the 620 00:34:00,160 --> 00:34:03,480 Speaker 1: Bloomberg editorial board. For more Bloomberg opinion, please go to 621 00:34:03,520 --> 00:34:06,160 Speaker 1: Bloomberg dot com, slash opinion or O P I N 622 00:34:06,240 --> 00:34:09,640 Speaker 1: go on the Bloomberg terminal. This has been Bloomberg opinion, 623 00:34:09,920 --> 00:34:12,880 Speaker 1: and you can hear Bloomberg opinion editorials every weekday at 624 00:34:12,960 --> 00:34:16,239 Speaker 1: this time. Terminal customers can read more at O P 625 00:34:16,440 --> 00:34:19,279 Speaker 1: I N go. It is seven on Wall Street. We've 626 00:34:19,320 --> 00:34:21,560 Speaker 1: been telling you about the US adding more than thirty 627 00:34:21,719 --> 00:34:25,239 Speaker 1: Chinese companies to its trade blacklist, where Bloomberg News has 628 00:34:25,239 --> 00:34:28,880 Speaker 1: also learned that Chinese leaders are planning to proceed with 629 00:34:29,040 --> 00:34:32,920 Speaker 1: a closely watched economic policy meeting in Beijing tomorrow That 630 00:34:33,080 --> 00:34:37,840 Speaker 1: comes as COVID infections continue to surge across the Chinese capital. 631 00:34:38,200 --> 00:34:41,680 Speaker 1: Senior Chinese officials meet every December to plot out economic 632 00:34:41,760 --> 00:34:45,400 Speaker 1: policy for the coming year. It's not five thirty eight 633 00:34:45,440 --> 00:34:47,480 Speaker 1: on Wall Street. Straight ahead. On daybreak, we'll get to 634 00:34:47,640 --> 00:34:50,400 Speaker 1: the latest on the ft X saga as Sam Bankman 635 00:34:50,440 --> 00:34:53,800 Speaker 1: Freed apparently plans to fight extradition from the Bahamas. We 636 00:34:53,840 --> 00:34:56,000 Speaker 1: will get the update for you next from Bloomberg Cross 637 00:34:56,040 --> 00:35:03,400 Speaker 1: Asset editor Joanna Ostnger. This is Bloomberg Markets, headlines and 638 00:35:03,560 --> 00:35:06,719 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 639 00:35:06,920 --> 00:35:10,560 Speaker 1: at Bloomberg Business at Land, at Bloomberg Quicktape. She's a 640 00:35:10,600 --> 00:35:19,560 Speaker 1: Bloomberg Business Flash and I'm Karen Moscow. This update brought 641 00:35:19,600 --> 00:35:22,400 Speaker 1: to you by Sei Ya said. Managers don't get results 642 00:35:22,440 --> 00:35:24,279 Speaker 1: that are off the charts from their solutions are off 643 00:35:24,360 --> 00:35:27,480 Speaker 1: the shelf. Learn how sci is operating platform can turn 644 00:35:27,600 --> 00:35:31,080 Speaker 1: infrastructure into a competitive advantage At s c i C 645 00:35:31,280 --> 00:35:35,280 Speaker 1: dot Com, slash Tech US dot Index futures are little 646 00:35:35,400 --> 00:35:39,080 Speaker 1: change this morning, Investors, debating whether inflation has eased enough 647 00:35:39,160 --> 00:35:42,160 Speaker 1: to encourage the federal reserved to slow monetary tightening. We 648 00:35:42,280 --> 00:35:44,640 Speaker 1: checked the markets all day long right here on Bloomberg 649 00:35:44,960 --> 00:35:47,320 Speaker 1: SMP futures Again little change and so are down in 650 00:35:47,440 --> 00:35:50,600 Speaker 1: NOWNSDAG futures. The decks in Germany's down seven tenths of 651 00:35:50,680 --> 00:35:53,399 Speaker 1: upper set ten. Your treasury up three thirty seconds. You're 652 00:35:53,440 --> 00:35:55,920 Speaker 1: three point four nine percent. They yield on the two 653 00:35:56,000 --> 00:35:59,239 Speaker 1: year four point one seven percent. Dimex Screwed oil is 654 00:35:59,280 --> 00:36:01,440 Speaker 1: at one point one percent of seventy seven cents at 655 00:36:01,480 --> 00:36:04,560 Speaker 1: seventy six dollars sixteen cents of Arrol Comic School down 656 00:36:04,640 --> 00:36:06,759 Speaker 1: three tenths per cent or five dollars seventy cents at 657 00:36:06,800 --> 00:36:10,400 Speaker 1: eighteen nineteen seventy announced the euro one point six five 658 00:36:10,440 --> 00:36:12,719 Speaker 1: eight against the dollar, British pound one point to three 659 00:36:12,880 --> 00:36:16,279 Speaker 1: nine two then one thirty four point seven five and 660 00:36:16,360 --> 00:36:18,560 Speaker 1: Bitcoin this morning at a third of a percent at 661 00:36:18,760 --> 00:36:22,320 Speaker 1: seventeen thousand, eight hundred dollars. And as a Bloomberg business flash, 662 00:36:22,360 --> 00:36:24,480 Speaker 1: now here's Amy Morris with Moore on what's going on 663 00:36:24,600 --> 00:36:27,160 Speaker 1: around the world. Amy think you care in the White 664 00:36:27,200 --> 00:36:30,400 Speaker 1: House asking Congress for resources to help mitigate an influx 665 00:36:30,440 --> 00:36:33,880 Speaker 1: of migrants crossing the US Mexico border. Democrats want to 666 00:36:33,920 --> 00:36:37,359 Speaker 1: work with Republicans on bipartisan immigration reform as the title 667 00:36:37,440 --> 00:36:39,439 Speaker 1: forty two policy is set to end in a week. 668 00:36:39,800 --> 00:36:42,840 Speaker 1: A new report from the CDC says long COVID played 669 00:36:42,840 --> 00:36:45,080 Speaker 1: a part in more than thirty five hundred deaths in 670 00:36:45,120 --> 00:36:48,320 Speaker 1: the US. Most who died from long COVID were older, 671 00:36:48,400 --> 00:36:52,120 Speaker 1: white men and sports. In the NHL, Al Jovetchkin reaches 672 00:36:52,239 --> 00:36:55,719 Speaker 1: eight hundred career goals as the Caps one the Doubl's lost, 673 00:36:55,960 --> 00:36:59,080 Speaker 1: The Bruins beat the Islanders. In the NBA, the Celtics 674 00:36:59,160 --> 00:37:02,080 Speaker 1: win in the Warriors Slopes global names twenty four hours 675 00:37:02,120 --> 00:37:04,719 Speaker 1: a day on errand on Bloomberg Quick Take, bowered by 676 00:37:04,800 --> 00:37:07,360 Speaker 1: more than twenty seven hundred journalists and analysts in more 677 00:37:07,440 --> 00:37:11,200 Speaker 1: than one hundred twenty countries. I'm anymore is this is Bloomberg, Nathan, 678 00:37:11,400 --> 00:37:14,120 Speaker 1: Thank you Amy. It is forty two on Wall Street. 679 00:37:14,200 --> 00:37:17,759 Speaker 1: This is Bloomberg Daybreak. I'm Nathan Hagar alongside Karen Moscow. So, 680 00:37:17,760 --> 00:37:20,400 Speaker 1: like some of the other stories making news this morning, 681 00:37:20,560 --> 00:37:24,319 Speaker 1: Apple is preparing to allow alternative app stores on its 682 00:37:24,400 --> 00:37:28,280 Speaker 1: iPhones and iPads. We get that story from Bloomberg's Charlie Cellett. 683 00:37:28,600 --> 00:37:31,840 Speaker 1: It is part of a sweeping overhaul aimed at complying 684 00:37:31,960 --> 00:37:35,960 Speaker 1: with strict European Union requirements coming in twenty twenty four. 685 00:37:36,440 --> 00:37:40,759 Speaker 1: Sources say software engineering and services employees are engaged in 686 00:37:40,840 --> 00:37:44,839 Speaker 1: a major push to open up key elements of Apple's platforms. 687 00:37:45,200 --> 00:37:49,000 Speaker 1: As part of the changes, customers could ultimately download third 688 00:37:49,080 --> 00:37:52,719 Speaker 1: party software to their iPhones and iPads without using the 689 00:37:52,800 --> 00:37:57,520 Speaker 1: company's app store, sidestepping Apple's restrictions and the up to 690 00:37:57,920 --> 00:38:02,560 Speaker 1: thirty percent commission it imposed is on payments in New York. 691 00:38:02,680 --> 00:38:06,040 Speaker 1: Charlie Pellic Bloombird, day break Right, Charlie Thanks Well. Elon 692 00:38:06,200 --> 00:38:10,280 Speaker 1: Musk reportedly is taking drastic steps to cut costs of Twitter. 693 00:38:10,560 --> 00:38:13,280 Speaker 1: According to The New York Times, Twitter has not paid 694 00:38:13,360 --> 00:38:16,279 Speaker 1: rent for its San Francisco headquarters or any of its 695 00:38:16,320 --> 00:38:20,640 Speaker 1: global offices for weeks. It's also considering not paying severance packages, 696 00:38:20,920 --> 00:38:23,440 Speaker 1: and has refused to pay an almost two hundred thousand 697 00:38:23,520 --> 00:38:26,640 Speaker 1: bill for charter flights the week of Musk's takeover. Well, 698 00:38:26,719 --> 00:38:29,000 Speaker 1: this isn't the kind of cut that Elon Musk might 699 00:38:29,120 --> 00:38:31,400 Speaker 1: like to see. Karen. He is no longer the world's 700 00:38:31,520 --> 00:38:35,719 Speaker 1: richest person on the Bloomberg Billionaires Index, Elon Musk has 701 00:38:35,719 --> 00:38:39,040 Speaker 1: been displaced by Bernard on No who owns almost fifty 702 00:38:39,120 --> 00:38:43,120 Speaker 1: percent of the French luxury giant LVMH. According to the 703 00:38:43,160 --> 00:38:45,880 Speaker 1: Billionaires Index, Musk has seen his fortune tumble by more 704 00:38:45,920 --> 00:38:50,200 Speaker 1: than a hundred billion dollars since January. The Tesla, Twitter 705 00:38:50,320 --> 00:38:53,880 Speaker 1: and space X boss is now worth just under one 706 00:38:54,360 --> 00:38:57,080 Speaker 1: sixty four billion dollars, enough to put him in second 707 00:38:57,120 --> 00:39:00,880 Speaker 1: place now, and Tesla's stock is down more than fifty 708 00:39:01,120 --> 00:39:05,000 Speaker 1: percent this year. Now to another story we're watching this morning, 709 00:39:05,040 --> 00:39:08,239 Speaker 1: the case against Sam Bankman Freed, a story where no 710 00:39:08,360 --> 00:39:10,520 Speaker 1: doubt going to be following for weeks, if not months 711 00:39:10,560 --> 00:39:14,240 Speaker 1: to come. Federal prosecutors and regulators are laying out fraud 712 00:39:14,280 --> 00:39:17,760 Speaker 1: allegations against the ft X founder, as Bankman Freed indicates 713 00:39:17,800 --> 00:39:21,320 Speaker 1: he will fight extradition from the Bahamas. Let's get the 714 00:39:21,400 --> 00:39:24,880 Speaker 1: latest live now from Bloomberg News Cross Asset editor Joanna Ostinger, 715 00:39:24,880 --> 00:39:27,800 Speaker 1: who's been following from the get go. Joanna, Good morning. 716 00:39:28,320 --> 00:39:30,280 Speaker 1: Since last we spoke. We got the eight count indictment 717 00:39:30,320 --> 00:39:32,960 Speaker 1: from federal prosecutors. What more does it tell us about 718 00:39:33,040 --> 00:39:38,280 Speaker 1: the scheme Sam Bankman Freed is accused of running. Well, Nathan, 719 00:39:38,360 --> 00:39:40,520 Speaker 1: it tells us that this is pretty wide ranging. I 720 00:39:40,560 --> 00:39:43,360 Speaker 1: mean we have the civil charges from the Securities and 721 00:39:43,440 --> 00:39:48,480 Speaker 1: Exchange Commission, the Federal The criminal charges are now wire fraud, 722 00:39:48,760 --> 00:39:51,879 Speaker 1: conspiracy to commit securities fraud, and then there are other 723 00:39:51,920 --> 00:39:55,920 Speaker 1: accounts for allegedly misappropriating billions of dollars and customer funds 724 00:39:55,960 --> 00:39:58,640 Speaker 1: for personal use and risky best by elan to research. 725 00:39:59,160 --> 00:40:02,200 Speaker 1: So this is a pretty wide ranging case. Again, it 726 00:40:02,600 --> 00:40:05,800 Speaker 1: looks like it's been done with such a speed that 727 00:40:06,040 --> 00:40:08,680 Speaker 1: they may feel like they are very strong evidence. And 728 00:40:08,719 --> 00:40:11,120 Speaker 1: then of course there are even the Commodity Futures Trading 729 00:40:11,160 --> 00:40:14,840 Speaker 1: Commission charges as well. So there's a lot coming at 730 00:40:14,920 --> 00:40:19,000 Speaker 1: them Bank and Freed right now. And it's um, it's 731 00:40:19,040 --> 00:40:21,960 Speaker 1: on a variety of fronts. Well, I have a prosecutors 732 00:40:22,360 --> 00:40:25,560 Speaker 1: alleged that the arrangement worked between f t X and 733 00:40:25,800 --> 00:40:30,440 Speaker 1: the Alameda Research Trading Arm. What's the what's the potential 734 00:40:30,520 --> 00:40:35,319 Speaker 1: for criminality that prosecutors are looking at here? Well, they're 735 00:40:35,360 --> 00:40:39,360 Speaker 1: looking at a lot of things just regarding favored status 736 00:40:39,800 --> 00:40:43,360 Speaker 1: and where the money flows went, where they might not 737 00:40:43,600 --> 00:40:46,200 Speaker 1: have really where it might not have been legal, like 738 00:40:46,719 --> 00:40:51,080 Speaker 1: with money used for Alameda that should have been squirreled 739 00:40:51,080 --> 00:40:53,880 Speaker 1: away for f t X, for instance. There's also a 740 00:40:53,960 --> 00:40:59,000 Speaker 1: little interesting factoids that Alameda was getting uh split second 741 00:40:59,120 --> 00:41:02,520 Speaker 1: advantage in trading on f t X, which some people 742 00:41:02,600 --> 00:41:06,560 Speaker 1: had suspected but f t X had long denied. So 743 00:41:07,239 --> 00:41:09,440 Speaker 1: there are a number of things coming out about just 744 00:41:09,719 --> 00:41:13,600 Speaker 1: this close relationship and the use of funds and the 745 00:41:13,760 --> 00:41:18,319 Speaker 1: use of this the whole apparatus that may be uh 746 00:41:18,560 --> 00:41:21,000 Speaker 1: that may have been illegal. Now when you think about 747 00:41:21,400 --> 00:41:27,480 Speaker 1: the implications for algorithmic trading, when you think about milliseconds 748 00:41:27,880 --> 00:41:30,920 Speaker 1: being like years for that kind of trading, I mean, 749 00:41:30,960 --> 00:41:34,759 Speaker 1: what does that say about the the the kind of 750 00:41:34,840 --> 00:41:39,839 Speaker 1: scheme that Sam bankman Fried was accused of doing here. Yeah, well, 751 00:41:40,320 --> 00:41:43,239 Speaker 1: as you say, it's every little bit counts, And so 752 00:41:43,520 --> 00:41:46,440 Speaker 1: if you have an edge, even if milliseconds there, if 753 00:41:46,480 --> 00:41:50,600 Speaker 1: there's some little thing in the operations or an algorithms 754 00:41:50,640 --> 00:41:52,880 Speaker 1: that could give an advantage in one way or the 755 00:41:52,920 --> 00:41:57,080 Speaker 1: other to Alameda, that could have given them a huge 756 00:41:57,080 --> 00:42:01,280 Speaker 1: advantage as opposed to the other participants in the system. 757 00:42:01,840 --> 00:42:04,920 Speaker 1: And that does seem like it's what people are looking at, 758 00:42:05,040 --> 00:42:08,040 Speaker 1: what prosecutors are looking at now on top of the prosecutions, 759 00:42:08,080 --> 00:42:14,279 Speaker 1: the potential regulatory complaints as well. We've got hearings still 760 00:42:14,400 --> 00:42:17,239 Speaker 1: going on on Capitol Hill in Washington, d C. And 761 00:42:17,360 --> 00:42:22,000 Speaker 1: some really blunt testimony from the new CEO of f 762 00:42:22,160 --> 00:42:24,360 Speaker 1: t X. What were some of your takeaways from what 763 00:42:24,520 --> 00:42:28,640 Speaker 1: John Ray had to say. Well, a lot of it 764 00:42:28,800 --> 00:42:32,279 Speaker 1: isn't too surprising, Nathan, right, he's saying that probably they 765 00:42:32,320 --> 00:42:35,120 Speaker 1: won't be able to recoup all the customer funds. But 766 00:42:35,239 --> 00:42:37,239 Speaker 1: I did think it was interesting too that he said 767 00:42:37,400 --> 00:42:40,440 Speaker 1: they might be able to get more from the US ARM. 768 00:42:40,840 --> 00:42:44,440 Speaker 1: There has been some speculation about exactly how much f 769 00:42:44,560 --> 00:42:48,920 Speaker 1: t X US customers might get versus f t X overall, 770 00:42:49,560 --> 00:42:51,440 Speaker 1: but it looks like f t X U s might 771 00:42:51,480 --> 00:42:54,640 Speaker 1: be able to find some money here there, so I 772 00:42:54,760 --> 00:42:57,239 Speaker 1: might do a little bit better. But in general, it 773 00:42:57,320 --> 00:43:01,480 Speaker 1: seems like he's still saying, look, there's there won't necessarily 774 00:43:01,560 --> 00:43:04,240 Speaker 1: be a lot if you're a customer or an investor. 775 00:43:04,920 --> 00:43:07,640 Speaker 1: For at the end of this now we have a 776 00:43:07,760 --> 00:43:10,920 Speaker 1: Sam bankman. Freed is still in custody in the Bahamas 777 00:43:10,920 --> 00:43:13,640 Speaker 1: awaiting his next sex tradition hearing. I guess in a 778 00:43:13,719 --> 00:43:17,640 Speaker 1: couple of months here. Uh, it seems as though he's 779 00:43:17,680 --> 00:43:21,520 Speaker 1: going to be uh fighting extradition. In our last minute here, 780 00:43:22,080 --> 00:43:25,800 Speaker 1: what are the chances that Sam Bankman Freed returns to 781 00:43:25,880 --> 00:43:31,200 Speaker 1: the US anytime soon? Well, it's touching no chances, right, 782 00:43:31,239 --> 00:43:34,239 Speaker 1: because there are so many variables from you know, the 783 00:43:34,840 --> 00:43:38,320 Speaker 1: the judge and hearing to what the different countries decide 784 00:43:38,360 --> 00:43:43,400 Speaker 1: to choose or their strategy. But he is fighting it, 785 00:43:43,520 --> 00:43:46,360 Speaker 1: which is interesting because from comments he had made before, 786 00:43:47,120 --> 00:43:49,160 Speaker 1: he had said, you wanted to help out and everything. 787 00:43:49,719 --> 00:43:52,560 Speaker 1: But it could be months now, it could be years, 788 00:43:53,120 --> 00:43:55,560 Speaker 1: and some of that may depend on what the Bahamas 789 00:43:55,600 --> 00:43:57,640 Speaker 1: want to do. The US does appear to want to 790 00:43:57,680 --> 00:44:00,759 Speaker 1: get him back as soon as possible, but it's looking like, 791 00:44:00,880 --> 00:44:02,279 Speaker 1: as you said, it will be at least a couple 792 00:44:02,280 --> 00:44:05,160 Speaker 1: of months until that initial hearing, and then um could 793 00:44:05,200 --> 00:44:08,600 Speaker 1: be much longer from there, so I could take a while. Yeah, 794 00:44:08,600 --> 00:44:11,759 Speaker 1: we've seen some other high profile figures fight extradition from 795 00:44:12,680 --> 00:44:18,240 Speaker 1: UK itself and it's a Commonwealth I think of Julian 796 00:44:18,280 --> 00:44:22,560 Speaker 1: Osange in particular. That's an extradition process that literally took years. 797 00:44:22,640 --> 00:44:26,160 Speaker 1: So the possibility we could be following this really for 798 00:44:26,320 --> 00:44:29,600 Speaker 1: quite some time. Thanks as always, Bloomberg News cross s 799 00:44:29,680 --> 00:44:33,240 Speaker 1: at Editor Joanna Ostinger following the f t X, SAGA 800 00:44:33,320 --> 00:44:37,200 Speaker 1: and Sam Bankman freed forests. This morning, SFP futures right 801 00:44:37,280 --> 00:44:39,719 Speaker 1: now down one point down, Future is down six and 802 00:44:39,760 --> 00:44:43,279 Speaker 1: Danstack futures are lower by thirteen points Tenure Treasury is 803 00:44:43,360 --> 00:44:46,640 Speaker 1: up one thirty second, the yield three point four nine percent. 804 00:44:47,120 --> 00:44:50,560 Speaker 1: Bitcoins trading higher by three tenths percent right now, right 805 00:44:50,600 --> 00:44:54,200 Speaker 1: around seventeen thousand, eight hundred, All this ahead of a 806 00:44:54,480 --> 00:45:02,600 Speaker 1: FED decision this afternoon. You're listening to Bloomberg day Break, markets, 807 00:45:02,719 --> 00:45:05,759 Speaker 1: headlines and breaking news twenty four hours a day at 808 00:45:05,840 --> 00:45:09,800 Speaker 1: Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Victaque. 809 00:45:10,000 --> 00:45:19,040 Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow 810 00:45:19,160 --> 00:45:22,560 Speaker 1: and US Dock Index futures they are little change this morning. 811 00:45:22,640 --> 00:45:25,920 Speaker 1: Investors debating whether inflation has eased enough to encourage the 812 00:45:26,000 --> 00:45:28,680 Speaker 1: Fed to slow monetary tightening. The check the markets all 813 00:45:28,760 --> 00:45:31,560 Speaker 1: day long. Yere at Bloomberg and SNP and Dow futures 814 00:45:31,600 --> 00:45:34,200 Speaker 1: are a little change, So were nasdack futures. The decks 815 00:45:34,239 --> 00:45:36,520 Speaker 1: in Germany is down about three quarters of a percent. 816 00:45:36,840 --> 00:45:39,239 Speaker 1: Ten Your Treasury up one thirty second, deal three point 817 00:45:39,280 --> 00:45:41,440 Speaker 1: four nine percent. They yield on the two year four 818 00:45:41,480 --> 00:45:43,920 Speaker 1: point one eight percent, and nim X screwed oil is 819 00:45:44,000 --> 00:45:45,880 Speaker 1: up nine tenths per cent, or sixty six cents at 820 00:45:45,920 --> 00:45:48,400 Speaker 1: seventy six dollars five cents of barrel. And that's a 821 00:45:48,440 --> 00:45:51,640 Speaker 1: Bloomberg business flash. Nathan Okay, Karen, thanks for coming up 822 00:45:51,680 --> 00:45:54,160 Speaker 1: to five fifty six on Wall Street. It's time for 823 00:45:54,280 --> 00:45:57,719 Speaker 1: our daily Bloomberg Law Brief, exploring legal issues in the news. 824 00:45:58,160 --> 00:46:01,560 Speaker 1: Today we look at Indiana, which has filed two novel 825 00:46:01,680 --> 00:46:06,000 Speaker 1: lawsuits against TikTok. They claimed the Chinese own social media 826 00:46:06,080 --> 00:46:11,160 Speaker 1: platform misleads consumers by exposing children to inappropriate content and 827 00:46:11,400 --> 00:46:14,320 Speaker 1: allowing China access to their data. Now, this is the 828 00:46:14,400 --> 00:46:17,560 Speaker 1: first time a state has sued TikTok, even though the 829 00:46:17,640 --> 00:46:20,000 Speaker 1: federal government has been fighting to ban the app or 830 00:46:20,520 --> 00:46:24,720 Speaker 1: reduce its affiliations with China. For more, Bloomberg's June Grosso 831 00:46:24,880 --> 00:46:27,759 Speaker 1: speaks with Fred Tate. He as a law professor at 832 00:46:27,800 --> 00:46:32,480 Speaker 1: Indiana University who just so happens to specialize in information privacy. 833 00:46:33,320 --> 00:46:39,240 Speaker 1: The Indiana Attorney General is claiming that TikTok misleads consumers 834 00:46:39,440 --> 00:46:44,359 Speaker 1: parents about the age appropriateness of its content. Right. One 835 00:46:44,520 --> 00:46:47,520 Speaker 1: lawsuit is claiming exactly what you said, and what they're 836 00:46:47,520 --> 00:46:51,279 Speaker 1: really saying is that TikTok is not behaving consistent with 837 00:46:51,640 --> 00:46:55,440 Speaker 1: the requirements of the Apple Store and the Androids Store, 838 00:46:55,800 --> 00:46:58,640 Speaker 1: so that they're labeling of their app in terms of 839 00:46:58,680 --> 00:47:02,240 Speaker 1: the age appropriateness is not accurate. And so the legal 840 00:47:02,360 --> 00:47:05,680 Speaker 1: claim there is that they're misleading Apple and Androids, but 841 00:47:05,800 --> 00:47:08,680 Speaker 1: at the effect is to mislead parents and you know, 842 00:47:08,800 --> 00:47:12,160 Speaker 1: people in Indiana. And then the other claim is that 843 00:47:12,480 --> 00:47:16,480 Speaker 1: TikTok is claiming that it does not share data customer 844 00:47:16,600 --> 00:47:20,440 Speaker 1: data with the Chinese government, and the Attorney General is 845 00:47:20,440 --> 00:47:23,600 Speaker 1: alleging that they do. Now, that's not illegal to share 846 00:47:23,640 --> 00:47:26,640 Speaker 1: information with the government. Lots of social media site share 847 00:47:26,800 --> 00:47:29,400 Speaker 1: information with the government, including with the US government. The 848 00:47:29,680 --> 00:47:32,440 Speaker 1: argument would be that it's a fraud to say you're 849 00:47:32,520 --> 00:47:35,160 Speaker 1: not sharing when in fact you are sharing. Is it 850 00:47:35,280 --> 00:47:37,840 Speaker 1: going to be difficult to prove that TikTok is not 851 00:47:38,200 --> 00:47:44,760 Speaker 1: describing accurately the appropriateness of its app for children, because 852 00:47:45,080 --> 00:47:50,440 Speaker 1: whether there's enough notification or whether it's misleading, could that 853 00:47:50,520 --> 00:47:52,600 Speaker 1: be in the eye of the beholder. It will be 854 00:47:52,920 --> 00:47:56,160 Speaker 1: very complicated to prove because it's not enough to just 855 00:47:56,280 --> 00:47:59,200 Speaker 1: say it's misleading, but generally you would have to show 856 00:47:59,280 --> 00:48:03,640 Speaker 1: that it's misleading and that it's material, that it's misleading 857 00:48:03,680 --> 00:48:06,960 Speaker 1: in a way that consumers would care about, and then 858 00:48:07,520 --> 00:48:11,360 Speaker 1: that it's either not easily detected or not easily avoided, 859 00:48:11,560 --> 00:48:14,200 Speaker 1: because you know, sometimes if you're misled about something, but 860 00:48:14,239 --> 00:48:16,000 Speaker 1: if you just open your eyes you can see that 861 00:48:16,120 --> 00:48:17,920 Speaker 1: it's not the way it was laid out to be, 862 00:48:18,520 --> 00:48:20,960 Speaker 1: then it's okay. So they're gonna have to show a 863 00:48:21,040 --> 00:48:23,840 Speaker 1: lot of things. And a related issue is is it 864 00:48:24,000 --> 00:48:27,279 Speaker 1: a pattern of this or I mean, really, all filters 865 00:48:27,400 --> 00:48:32,160 Speaker 1: let something through that somebody doesn't like, and so that's 866 00:48:32,160 --> 00:48:34,600 Speaker 1: not going to be enough to just show, hey, you know, 867 00:48:34,719 --> 00:48:37,239 Speaker 1: my ten year old son got something on TikTok that 868 00:48:37,360 --> 00:48:40,080 Speaker 1: was inappropriate. You're going to have to show that this 869 00:48:40,239 --> 00:48:43,320 Speaker 1: is a regular pattern and that TikTok knows about it 870 00:48:43,520 --> 00:48:46,880 Speaker 1: or isn't acting reasonably to prevent it. And I think 871 00:48:46,920 --> 00:48:49,960 Speaker 1: that will actually be very hard to show, because you know, 872 00:48:50,040 --> 00:48:53,000 Speaker 1: anyone who uses the Internet knows first of all that 873 00:48:53,239 --> 00:48:55,360 Speaker 1: a sense is often in the eye of the beholder, 874 00:48:55,880 --> 00:48:58,320 Speaker 1: and second of all that even the best filters, the 875 00:48:58,360 --> 00:49:02,680 Speaker 1: best design filters, are usually evated. That's Indiana University law 876 00:49:02,760 --> 00:49:06,239 Speaker 1: professor Fred Kate speaking with Bloomberg's June Grosso. You can 877 00:49:06,280 --> 00:49:09,160 Speaker 1: catch more of that interview, plus analysis of the latest 878 00:49:09,239 --> 00:49:12,360 Speaker 1: legal news, by subscribing to the Bloomberg Law podcast or 879 00:49:12,440 --> 00:49:16,440 Speaker 1: downloading the show at Bloomberg dot com. Slash podcasts, and 880 00:49:16,560 --> 00:49:20,960 Speaker 1: attorneys can find exceptional legal research and business development tools 881 00:49:21,200 --> 00:49:24,520 Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal 882 00:49:24,960 --> 00:49:28,200 Speaker 1: at b Law Go. Looking ahead to the market open 883 00:49:28,360 --> 00:49:32,440 Speaker 1: and this afternoon's FED decision, the final policy decision of 884 00:49:34,160 --> 00:49:37,759 Speaker 1: futures are little change. Sp futures unchanged right now down 885 00:49:37,800 --> 00:49:41,399 Speaker 1: futures up nine points, NASTAC futures down five ten, your 886 00:49:41,400 --> 00:49:44,080 Speaker 1: treasury up one thirty second yield three point four nine 887 00:49:44,160 --> 00:49:46,480 Speaker 1: per cent. We checked the business headlines, all the news 888 00:49:46,560 --> 00:49:48,640 Speaker 1: you need to start your day. Hour two of Bloomberg 889 00:49:48,719 --> 00:49:50,120 Speaker 1: Daybreak starts now.