Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg
Speaker 1: day Break for Wednesday, December fourteen two. Coming up this hour,
Speaker 1: the FED makes its final policy decision of the year
Speaker 1: with a fifty basis point hike, expecting the UK inflation
Speaker 1: dips from a forty one year high. You head of
Speaker 1: tomorrow's Bank of England decision. F t X co founder
Speaker 1: Sam Bankman Freed plans to fight extradition to the US,
Speaker 1: and the US plans to add more than thirty Chinese
Speaker 1: companies to its trade blacklist. I'm Amy Morris. A three
Speaker 1: alarm fire at a police evidence warehouse could burn for days,
Speaker 1: and our area is buckling up for more winter weather
Speaker 1: this week. I'm John stash Ourn sports another big baseball
Speaker 1: free agent signing. The Islanders and Devils both lost the
Speaker 1: World Cup semifinals, and today that's all s trended ahead
Speaker 1: on Bloomberg day Break on Bloomberg eleven, Free on New York,
Speaker 1: Bloomberg nine nine one, Washington d C, Bloomberg one O
Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Sirius x
Speaker 1: AM one nineteen and around the World Old on Bloomberg
Speaker 1: Radio dot Com and via the Bloomberg Business App. Good morning,
Speaker 1: I'm Nathan Hagar and I'm Karen Moscow. In US stock
Speaker 1: index futures are little change this morning. It is five
Speaker 1: the one on Wall Street, and we check the markets
Speaker 1: all day long here at Bloomberg Radio. Again, U s
Speaker 1: and P futures are a little change, so are down
Speaker 1: in NASDAG futures. The decks in Germany lower down six
Speaker 1: tents of a percent. The ten year treasury of three
Speaker 1: thirty seconds heel three point four eight percent, and they
Speaker 1: yield on the two year four point one eight percent. Nathan, Karen.
Speaker 1: It is a big week for critical economic events and
Speaker 1: it continues today with the Federal Reserves final policy decision
Speaker 1: of two. Let's get our coverage started with a preview
Speaker 1: now from Bloomberg Economics correspondent Michael McKee. Beneficials are going
Speaker 1: to raise the nation's benchmark lending rate by half a
Speaker 1: percentage point today. The question is what will they do next?
Speaker 1: After two consecutive soft CPI reports, investors are lower their
Speaker 1: bets on how high the Fed goes and for how long.
Speaker 1: That puts the focus on policymakers. New economic and interest
Speaker 1: rate forecasts and the so called dot plot that shows
Speaker 1: where they think rates will need to be at the
Speaker 1: end of next year. In September, the median dot was
Speaker 1: at four point six markets now see them at four
Speaker 1: point three percent after rate cuts beginning in July. Investors
Speaker 1: will also focus on how chair j Pal sees the
Speaker 1: data and the outlook. Will he again warn against over
Speaker 1: confidence on Wall Street? Michael McKee Bloomberg Daybreak, All right, Mike,
Speaker 1: thank you well after today. The Feds and next steps
Speaker 1: depend on the path of economic data, so says influential
Speaker 1: economist and Stanford University professor John Taylor. If it's fifty
Speaker 1: basis points uh at this decision, then don't lead on
Speaker 1: a twenty five or seventy five or another fifty. It depends,
Speaker 1: you know, the idea of Monterrey policies. It depends on
Speaker 1: what's happened to inflation, what's happened to real o'connorwey. We
Speaker 1: hope we don't have another downturn and and we can
Speaker 1: avoid that if in fact, that says, look, if inflation
Speaker 1: picks up, we will take action. Stanford professor John Taylor
Speaker 1: may have a comments in an interview with Bloomberg's Kathleen Hey.
Speaker 1: Stay tuned for complete coverage of today's FED decision on
Speaker 1: a special edition of Bloomberg Surveillance. It all begins at
Speaker 1: one thirty pm Wall Street Time on Bloomberg Radio and Television.
Speaker 1: We're caring that FED decision comes after a key gauge
Speaker 1: of consumer prices posted its smallest gain in more than
Speaker 1: a year, and that fueled a surge in stocks. At
Speaker 1: yesterday's opening bell, the SMP five hundred rows as much
Speaker 1: as two point eight percent before pairing those games to
Speaker 1: close higher by three quarters of one percent. Garg Choundry
Speaker 1: is Black Rock's head of I shares investment strategy. Policy
Speaker 1: is looking everything that the FED has been doing, as
Speaker 1: difficult as that has been for the markets. What the
Speaker 1: inflation data today shows us that it is It is
Speaker 1: going in the right direction bike rocks. Garge Choundry notes
Speaker 1: that overall CPI increased one tenth of a percent from
Speaker 1: the prior month, bringing inflation to an annual rate of
Speaker 1: seven point and percent. Nathan Inflation is also a front
Speaker 1: end center in the UK with fresh data, I head
Speaker 1: up tomorrow's Bank of England decision and let's go alive
Speaker 1: to London and get the latest with Bloomberg's un Parts
Speaker 1: you and good morning, Good morning Karen, Nathan. Another of
Speaker 1: the world's biggest economies is seeing a softening of inflation.
Speaker 1: Consumer prices in the UK rose ten points seven percent
Speaker 1: in November from a year earlier. That was down from
Speaker 1: eleven point one percent in the previous month and lower
Speaker 1: than forecasts. The data will be studied by the Bank
Speaker 1: of England ahead of their rate decision tomorrow, but with
Speaker 1: inflation more than five times over targets, no one is
Speaker 1: yet calling victory in this particular battle in London. I'm
Speaker 1: you and parts Bom Big day Break, Okay you and thanks.
Speaker 1: Let's turn down to the latest developments on Sam Bankman free,
Speaker 1: the FTX co founder, he plans to fight extradition to
Speaker 1: the US. Bloomberg Steve Rappaport joins US Live with the details.
Speaker 1: Good morning Steve, Good morning Nathan and Karen. Bringing Sam
Speaker 1: Bankman freed home from the Caribbean might require help from
Speaker 1: across the pond. The Bahamas is a British Commonwealth country,
Speaker 1: and final appe us on extradition are handled by London's
Speaker 1: Privy Council, a formal body of advisors to the Sovereign
Speaker 1: of the UK. While announcing the charges, Federal Prosecutor Damien
Speaker 1: Williams had a warning for anyone who may have helped
Speaker 1: bankman Freed, I would strongly encourage you to come see
Speaker 1: us before we come see you. If history is an indicator,
Speaker 1: Bankman Freed may have bought plenty of time. Eight men
Speaker 1: facing drug charges in the US fought extradition from the
Speaker 1: Bahamas for more than a decade. Live in New York.
Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks well.
Speaker 1: Another round of hearings on the ft X collapse is
Speaker 1: coming up today in the Senate. New fd X CEO
Speaker 1: John Ray testified yesterday before the House Financial Services Committee.
Speaker 1: Republican Committee member Andy Barr joined us to give his
Speaker 1: takeaway on the hearing. There was absolute concentration of control
Speaker 1: of this business, in these various businesses, in the hands
Speaker 1: of a very small group of in his in his words,
Speaker 1: grossly inexperienced and unsophisticated individuals. We also spoke with the
Speaker 1: Democratic Committee member Brad Sherman, who says Sam Bankman Phrad's
Speaker 1: downfall points to a need for more crypto regulation. When
Speaker 1: you're dealing with an enterprise the whole purpose of which
Speaker 1: is to come up with a currency system that allows
Speaker 1: you to evade American financial law. Congressman Brad's going to
Speaker 1: be dealing with people who are going to evade American
Speaker 1: financial law. Congressman Brad Sherman and Andy Barr were guests
Speaker 1: on Bloomberg Sound Alma Joe Matthew. Catch the program weekdays
Speaker 1: at five pm Eastern on Bloomberg Radio. Right, let's turn
Speaker 1: to geopolitical news this morning, Karen, we are seeing rising
Speaker 1: tensions between the world's two economic superpowers. The Biden administration
Speaker 1: will put China's leading maker of memory chips and more
Speaker 1: than thirty other Chinese companies on its trade blacklist that
Speaker 1: would prevent them from buying certain American technology. SMP futures
Speaker 1: down to point, Dow futures up a point, Nastack futures
Speaker 1: are lower by eight points ahead of the Fed decision. Today,
Speaker 1: local headlines and a check of sports. Next, This is Bloomberg.
Speaker 1: It's a five oh seven on Wall Street where thirty
Speaker 1: one degrees in Central Park is gonna stay sunny, and
Speaker 1: Chile again today has only near forty down to the
Speaker 1: low thirties. Tonight, Amy Morris is here with more on
Speaker 1: what's going on in New York and around the world.
Speaker 1: Good morning Amy, Good morning Nathan. A three alarm fire
Speaker 1: has led the partial collapse of a New York Police
Speaker 1: Department evidence center in Brooklyn. The fire was first reported
Speaker 1: by Police Department contractors working inside the Auto Pound. Acting
Speaker 1: Chief Jeffrey Maddery says the workers saw the flames on
Speaker 1: one of the evidence shelves and called for help. They
Speaker 1: they alerted the Police Department personnel inside. Everyone backed out.
Speaker 1: FD was alerted. Fire officials say everything inside the facility
Speaker 1: has either been lost or damaged, and that fire is
Speaker 1: expected to continue burning for days. President Biden has signed
Speaker 1: the Historic Respect for Marriage Act, cementing federal protections for
Speaker 1: same sex and inter racial marriages into law. Who do
Speaker 1: you love and would you be loyal with that first
Speaker 1: you love? It's not more complicated than that. The law
Speaker 1: recognized that everyone should have the right to answer those
Speaker 1: questions for themselves without the government interference. President Biden says
Speaker 1: the law requires interracial marriage and same sex marriage be
Speaker 1: recognized as legal in every state. Now we told you yesterday.
Speaker 1: New York is encouraging people to mask up, but New
Speaker 1: Jersey won't be putting a mask mad aid in place. Well,
Speaker 1: now we're learning kinectic. Governor Ned Lamont also says there's
Speaker 1: no need at this point for a mandate. The Hartford
Speaker 1: Current reports. Lamont says he sees no immediate concerns, but
Speaker 1: he says you should wear a mask if you're showing
Speaker 1: any symptoms, and you should get a booster if you
Speaker 1: haven't yet. The chief epidemiologist at Hartford health Care, however,
Speaker 1: says you should wear a mask indoors as flu and
Speaker 1: COVID cases rise. Looks like we are going to get
Speaker 1: some more snow later in the week, mostly rain, with
Speaker 1: light snow in some areas. Most of that well Dland.
Speaker 1: It's going to be kind of gusty wind too. That
Speaker 1: could make for a nasty Friday morning commute. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: in more than one d twenty countries. I'm Amy Morris.
Speaker 1: This is Bloomberg, Nathan al Amy Morris. Thank you five
Speaker 1: oh nine on Wall Street Time for the Bloomberg Sports Update,
Speaker 1: brought to you by Trice Stay Downey, Good morning, John
Speaker 1: Stash Hour, Morning Nathan. Another example of a baseball player
Speaker 1: who turned down a contract offer, hit free agency and
Speaker 1: made a ton more money. That happened with Aaron Judge,
Speaker 1: Andrew Bogarts and now Carlos. Korea used and offered him
Speaker 1: five years a hundred and sixty million dollars. Korea just
Speaker 1: signed with San Francisco thirteen years, three hundred and fifty million.
Speaker 1: Between Korea, Bogarts and Trade Turner. Three shortstops just signed
Speaker 1: contracts worth nine hundred and thirty million. The Devil's the
Speaker 1: last month had that thirteen game winning Streek have now
Speaker 1: lost their last three, beaten home by Dallas for to one.
Speaker 1: The Islanders lost in Boston four three in a shootout,
Speaker 1: Washington in Chicago and a milestone goal turn over in
Speaker 1: fraud and Manfustavus shots a store and its sala. It's
Speaker 1: a hundred goals in the National Hockey LEAGUEFK the call
Speaker 1: two more goals in Ovechkin passes Gordy how for second
Speaker 1: all time. He's still going strong at age thirty seven.
Speaker 1: He had a hat trick last night. We'll see if
Speaker 1: vescan can break a record that most felt was unreachable
Speaker 1: Wayne Gretzky's eight hundred and ninety four career goals. NBA
Speaker 1: Celtics beat the Lakers in overtime Utah in the New
Speaker 1: Orleans seven game winning streak battle to the last two champs.
Speaker 1: Milwaukee beat Golden State. That Nick's play tonight in Chicago.
Speaker 1: The World Cup. It's Defendie Champ France and Cinderella Morocco.
Speaker 1: The winner plays Argentina in Sunday's final. Mississippi State is
Speaker 1: going to play its bowl game, the school saying that's
Speaker 1: what coach Mike Leach would have wanted. Leech just passed
Speaker 1: away at sixty one. Leech was a true football innovator
Speaker 1: and a true character. John Bloomberg Sports, Thank you, John
Speaker 1: Bloomberg Sports was brought to you by Audie. Don't let
Speaker 1: someone else drive off in the Audi model you've always wanted.
Speaker 1: Visit your local Try State Audie dealer to get behind
Speaker 1: the wheel of yours today, or visit Autie Offers dot
Speaker 1: Com for more information. Markets in a kind of wait
Speaker 1: in C mode ahead of the Federal Reserve decision later
Speaker 1: on this afternoon, we have SMP futures right now down
Speaker 1: one point down, futures down three, NASAC futures lower by
Speaker 1: eight points. That is a little changed to the downside
Speaker 1: across the board. Tenure treasury is little changed as well.
Speaker 1: The yield on the benchmark ten year not three point
Speaker 1: five percent, and the yield on the two year is
Speaker 1: four point one eight percent. Nimex screwed up seven tenths
Speaker 1: percent seventy five nine cents a barrel. Comics gold down
Speaker 1: three tenths percent eighteen announced. The euro one point zero
Speaker 1: six six seven against the dollar, the end trading at
Speaker 1: the moment at one thirty five point zero three. This
Speaker 1: is Bloomberg. It's sound five twelve on Wall Street. You're
Speaker 1: listening to Bloomberg daybreak on Fed decision Day. The final
Speaker 1: policy move of two comes our way two pm, Wall
Speaker 1: Street time ahead of it. We are very pleased to
Speaker 1: be joined by Jennifer Lee, senior economist at BMO Capital Markets.
Speaker 1: Jen are we going to get anything other than fifty
Speaker 1: basis points? It seems like that's pretty well baked into
Speaker 1: this market. Oh, good morning. You know what um we
Speaker 1: have been. We're sticking with our fifty basis point move
Speaker 1: and our our call, and certainly yesterday's a CPI report,
Speaker 1: which um, wow, like that was when we were I
Speaker 1: can think of was wow after that's I've seen the
Speaker 1: headline increase much better than expected. I will certainly help
Speaker 1: solidify what he hinted at a couple of weeks ago.
Speaker 1: So I think we should all get ready to hear
Speaker 1: an updated version of that phrase. It's time to start
Speaker 1: moderating the pace of great heights. And that's not probably
Speaker 1: what he's going to say again this afternoon, but I
Speaker 1: would be very cautious to know, to to expect any
Speaker 1: think to doublish. You know, it would be very much
Speaker 1: of an abrupt shift if he changes his his his
Speaker 1: views on this one number. So you're not expecting that
Speaker 1: the FED chairman is going to say wow the way
Speaker 1: you did to that CPI reported. Is that what I'm
Speaker 1: hearing from you, I think he will, you know, be optimistic.
Speaker 1: You know, you know they they already said that about
Speaker 1: the October on CPI and hearing too. You know, having
Speaker 1: to modest UH increases in a row is encouraging. But
Speaker 1: his key freeze was UH was that he needed substantially
Speaker 1: more evidence, because you remember he said that that that
Speaker 1: November three, This was that he would take substantially more
Speaker 1: evidence to give them comfort that inslation that is actually declining. Now.
Speaker 1: Whether two or two months is enough, um, I highly
Speaker 1: highly doubt it, um, But you know, certainly this is
Speaker 1: a step in the right direction. Are you expecting any
Speaker 1: major changes then to the language in the f O
Speaker 1: m C statement, Any idea that we could see a
Speaker 1: little bit more explicit thought from the Fed on whether
Speaker 1: they're gonna take their foot off the gas even further
Speaker 1: from policy tightening. I think they're going to continue, you know,
Speaker 1: to to be cautious because it's it's just again, I
Speaker 1: still think it's too early to call the all clear
Speaker 1: on inflation. But at least he will he'll probably emphasize
Speaker 1: the point that rates will still need to be higher,
Speaker 1: higher than they expecting, you know, sometime ago. So even
Speaker 1: though they're going to be moderating the pace of rate heights,
Speaker 1: you know, instead of Sunday five, you know, word of
Speaker 1: getting fifty, and we have to remember fifty is still
Speaker 1: quite a bit as well. Um. But at least the
Speaker 1: pace is starting to modest to moderately uh slow, But
Speaker 1: they probably stay higher for longer be and then they
Speaker 1: would need a lot more evidence before they're comfortable, and
Speaker 1: she starts to at least stop raising rates and then
Speaker 1: at some point um cutting rates. But us I don't
Speaker 1: think that's gonna be part of the language or part
Speaker 1: of the vocabulary just yet. What do you think we'll
Speaker 1: get from the fens of economic projections? And how much
Speaker 1: stock do you put in those projections given how difficult
Speaker 1: it really has been to forecast this economy this year. Oh,
Speaker 1: I'll take it with a huge fistical assault. I mean,
Speaker 1: and you know it's it's it's not a crisi of criticism.
Speaker 1: It's just as he's just pointed out. I mean, it's
Speaker 1: so difficult to make accurate calls these days. And you know,
Speaker 1: I don't think anyone was calling for such a modest
Speaker 1: CPO number, for example, But I think they're going to
Speaker 1: probably um, you know, um um lower the I want
Speaker 1: to be staries that they lower the the GP forecast
Speaker 1: a little bit as well, But certainly I will I
Speaker 1: will see this, you know, that soft landing, sort of
Speaker 1: shallow downturn call. You know, it is looking better and better,
Speaker 1: and we might see some of that playing out in
Speaker 1: the forecast um this afternoon. Of course, one big vexing
Speaker 1: issue for this FED has been the ongoing tightness in
Speaker 1: the labor market and the concern that wage pressures will
Speaker 1: continue to feed into inflation. What do you think the
Speaker 1: FED is going to say about where unemployment needs to
Speaker 1: go to really tackle price pressures. So that is one
Speaker 1: area of which he hasn't really changed his tune too much.
Speaker 1: He continues to call the labor market very, very tight.
Speaker 1: And of this, you know, we're still seeing various very
Speaker 1: solid job increases on a month to month basis. But
Speaker 1: the fact that job vacancies have have have been taking
Speaker 1: lower UM is good news for them. And this is
Speaker 1: all going back to the whole how I've been saying that,
Speaker 1: you know, good is bad and bad is good. You know,
Speaker 1: so they will continue to to point to the labor
Speaker 1: market and they you know, and he's actually been sort
Speaker 1: of tweaking it, actually have a standing corrected. He teaches
Speaker 1: a little bit by saying that you know, it's um
Speaker 1: that it needs to come down a lot more and uh,
Speaker 1: you know before they can start up breathing a little
Speaker 1: bit easier as well, And so far we're not seeing
Speaker 1: that and it's going to be sometime I think before
Speaker 1: UM you know, we we see, um, some of the
Speaker 1: wage pressures ease a little bit now the the the
Speaker 1: NFIB survey I think earlier this uh this week did
Speaker 1: show that there was a smaller share of firms planning
Speaker 1: to raise work or compa the next a few months.
Speaker 1: So that's you know, that is a step also in
Speaker 1: the right inflationary direction. Our last thirty seconds here, I'll
Speaker 1: put you on the spot a little bit. When you
Speaker 1: see inflation getting back to target. Oh, it's going to
Speaker 1: take a few years, I think. You know, we we
Speaker 1: still have you know, uh ss demand, I guess. And
Speaker 1: of course this whole labor market tightness is not going
Speaker 1: to play out. Uh, this is not helping the inflation story.
Speaker 1: Uh um um handles, I guess. But we're gonna see
Speaker 1: we're starting to see obviously inflation coming down, but getting
Speaker 1: back towards the two ish range is probably something in
Speaker 1: in a late story. Thanks as always, Jen, great getting
Speaker 1: your thoughts. Jennifer Lee, Senior economist, BMO Capital Markets. Ahead
Speaker 1: of the final FED decision of the year two pm,
Speaker 1: Wall Street Time will find out where the Fed puts raids,
Speaker 1: and of course the news conference from Chairman Powell coming
Speaker 1: up at two thirty. We will have it all covered
Speaker 1: for you on a special edition of Bloomberg. Surveillance begins
Speaker 1: at one thirty pm Wall Street Time. You can catch
Speaker 1: it all on both Bloomberg Radio and Bloomberg Television. Ahead
Speaker 1: of it, SMP. Future is little change down, Futures up
Speaker 1: five points, nastax, futures downten. This is Bloomberg Markets, headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business Outland at Bloomberg Quick Take.
Speaker 1: He's a Bloomberg Business Flash and I'm kared Moscow and
Speaker 1: futures are little change this morning as we await the
Speaker 1: Federal Reserve interest rate decision. At a ten year treasury
Speaker 1: is up three thirty seconds. You have three point four
Speaker 1: nine percent. The yield on the two year four point
Speaker 1: one eight percent, and I'm ex scret oil is of
Speaker 1: three quarters of a percent, or fifty seven cents at
Speaker 1: seventy five dollars ninety six cents a barrel. That's a
Speaker 1: Bloomberg Business Flash. Now here's Amy Morris with Moore on
Speaker 1: what's going on around the world. Amy, thank you, Careen.
Speaker 1: Lawmakers have hammered out a deal on a framework to
Speaker 1: fund the government this fiscal year, put in Congress on
Speaker 1: track to avert a shutdown. The House Select Committee investigating
Speaker 1: last year's attack on the U S Capitol will hold
Speaker 1: its final session on Monday. They plan to vote on
Speaker 1: criminal referrals and sports. In the NHL, Alex Ovechkin reaches
Speaker 1: eight hundred career goals, Caps win, Devil's lose, Islanders beat
Speaker 1: the Bruins, and in the NBA the Celtics when the
Speaker 1: Warriors lost. Global News twenty four hours a day on
Speaker 1: Erin on Bloomberg quick Take, powered by more than twenty
Speaker 1: d journalists and analysts and more than one hundred twenty countries.
Speaker 1: I'm Amy Morris, this is Bloomberg. Nathan Okay, Amy, thank
Speaker 1: you for coming up to five twenty three on Wall Street.
Speaker 1: I'm Nathan Hagar. This is Bloomberg Daybreak. The collapse of
Speaker 1: f t X and the arrest of its co founder
Speaker 1: Sam bankman Fried have raised questions about what comes next
Speaker 1: for crypto regulation. The new CEO of f t X,
Speaker 1: John Ray, test to find before the House Financial Services
Speaker 1: Committee yesterday on the company's finances. After that hearing, our
Speaker 1: Washington correspondent Joe Matthew spoke with one of the members
Speaker 1: of the committee, Republican Andy Barr. Let's listen in to
Speaker 1: that conversation. Now, pretty remarkable testimony today from John Ray.
Speaker 1: Did you learn anything new? I think we did. We
Speaker 1: knew this was a huge scandal. We knew that this
Speaker 1: was one of the greatest frauds in America and investment history.
Speaker 1: But what we learned was that this was a total
Speaker 1: and complete failure of all internal controls and governance. As
Speaker 1: uh the new CEO, Mr Ray pointed out, there was
Speaker 1: absolute concentration of control of this business, in these various businesses,
Speaker 1: in the hands of a very small group of in
Speaker 1: his in his words, grossly inexperienced and unsophisticated individuals, who
Speaker 1: who failed to implement virtually any of the systems or
Speaker 1: control is necessary for a company that is entrusted with
Speaker 1: other people's assets. And um, you know, the result is
Speaker 1: a million creditors. And if you think of some of
Speaker 1: the other scandals in American business history and Ron the
Speaker 1: accounting scandal, or the Bernie made Off scandal, you know,
Speaker 1: you you had a number of individuals hurt, but the
Speaker 1: size and scale of the victims of this fraud are
Speaker 1: enormous and really overshadow those those other scandals. Well, you
Speaker 1: brought up this lack of accounting if if I can
Speaker 1: even use that term in your exchange with John Ray today. Left. Listen,
Speaker 1: there's a whole lot of uh, financial statements that are
Speaker 1: either not audited or not available. Is that fair to say? That's? Um?
Speaker 1: In your declaration, you stated that you did not believe
Speaker 1: that those audited financial statements were reliable. Can you elaborate
Speaker 1: on why you believe that to be the case. Well,
Speaker 1: we've lost a billion dollars right of customer money, So
Speaker 1: by definition, I don't trust a single piece of paper
Speaker 1: in this organization. Are you surprised, Congressman, by how little
Speaker 1: John Ray knows after a couple of weeks of of investigating,
Speaker 1: and how little he trusts still at this point, Well, no,
Speaker 1: because this was an unprecedented case of mismanagement and fraud
Speaker 1: where there was a gross lack of documentation. UM. But
Speaker 1: both in terms of you know, a lack of financial
Speaker 1: statements to begin with, and and then the nancial statements
Speaker 1: that are available and the word audited, Uh, he doesn't
Speaker 1: have confidence that they are reliable. UM. And so I
Speaker 1: think The major point that he was making was that
Speaker 1: there's there's simply a lack of documentation, utter lack of
Speaker 1: record keeping was what he said. And and no internal
Speaker 1: controls UM and and the fact that there was so
Speaker 1: much commingling of assets UH and use of customer funds
Speaker 1: for UM risky trading UH and also UM for you know,
Speaker 1: diversion to things like the f t X Foundation, which
Speaker 1: was not core to the business, the various affiliates of
Speaker 1: the f t X Foundation. There Again, this was a
Speaker 1: man Sam Bankman Freed who basically stole money from unwinning
Speaker 1: investors and diverted it into risky trading or other of
Speaker 1: political or charitable causes. The resulted in massive losses for
Speaker 1: those investors. And that was Republican House Financial Services Committee
Speaker 1: Member Andy Barr speaking with our Washington correspondent Joe Matthew
Speaker 1: on Bloomberg Sound On. You can catch the show weekdays
Speaker 1: at five pm Wall Street time on Bloomberg Radio. Stick
Speaker 1: with us for more on the hearing. Next hour, we'll
Speaker 1: bring you Joe's conversation with Democratic Congressman Brad Sherman, who
Speaker 1: also sits on the Financial Services Committee. Bloomberg Day Break
Speaker 1: is brought to you by se I. Imagine your asset
Speaker 1: management firms operational infrastructure as a competitive advantage. Let se
Speaker 1: I show you how at se I c dot com
Speaker 1: slash i MS. Looking ahead to the FED decision and
Speaker 1: the market open this morning, futures aren't showing a whole
Speaker 1: lot of movement. SMP futures are higher, but by just
Speaker 1: two points now, futures up twenty two. Nastic futures on
Speaker 1: the rise by three points ten. Your treasuries up to
Speaker 1: thirty seconds now the yield three point four nine percent.
Speaker 1: We'll get you your top stories and local headlines coming
Speaker 1: up first. Bloomberg Meteorologist Rob Carolyn with the weather forecast.
Speaker 1: I pressure has control. The patterns for today. Will have sunshine.
Speaker 1: This morning, we'll load to some high cloudiness moving in
Speaker 1: from the west and southwest. This afternoon. Highs will be
Speaker 1: up around forty. It'll become cloudy overnight flows thirty to
Speaker 1: thirty five. Rain arrives tomorrow afternoon. Well inland. It may
Speaker 1: start us some wet snow heighs near forty five, rainy,
Speaker 1: breezy Friday forty five to fifty for the high. Rob
Speaker 1: Carolyn with your three day forecast on Bloomberg eleven three
Speaker 1: oh broadcasting live from the Bloomberg Interactive Broker's studio in
Speaker 1: New York. Bloomberg E Living Freedom to Washington, d C,
Speaker 1: Bloomberg one to Boston, Bloomberg one oh six one does
Speaker 1: San Francisco, Bloomberg sixty to the Country, Sirius XM chto
Speaker 1: one nine team, and around the globe the Bloomberg Business
Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak. We're
Speaker 1: coming up to five thirty on Wall Street. Good morning.
Speaker 1: I'm Nathan Hager and I'm Karen Moskee, and we're just
Speaker 1: about four hours away from the open of US trading.
Speaker 1: Let's get you up to day on the news you
Speaker 1: need to know at this hour. A big week for
Speaker 1: critical economic events continues today with the Federal Reserve's final
Speaker 1: interest rate decision of the year. Influential economist and Stanford
Speaker 1: University professor John Taylor says the Central Bank cannot afford
Speaker 1: to pause hikes too quickly. The Fed got well behind
Speaker 1: the curve in the seventies, and we don't want to
Speaker 1: have that situation. The inflation rate increase has been over
Speaker 1: a shorter period of time is maybe eighteen months, So
Speaker 1: we can do this if the Fed is determined, if
Speaker 1: the people are supportive of the Fed, if they'd realize
Speaker 1: this is the best way to get the inflation down.
Speaker 1: It's not by waiting and dilly dally, and it's really
Speaker 1: by taking the action right now. Stanford professor John Taylor
Speaker 1: says the central banks next steps depend on the path
Speaker 1: of economic data. Stay tuned for complete coverage today's FED
Speaker 1: decision on a special edition of Bloomberg Surveillance. It all
Speaker 1: begins at one thirty pm Wall Street Time on Bloomberg
Speaker 1: Radio and television. Well, that Fed decision, Karen, comes after
Speaker 1: Stock's got a booth. From yesterday's consumer price reading, a
Speaker 1: key gauge of inflation posted its smallest monthly advance in
Speaker 1: more than a year. But Kathryn Kaminski, chief researched strategist
Speaker 1: with Alpha Simplex, says traders should expect more bumps ahead.
Speaker 1: People are really anticipating that this will disappear a lot
Speaker 1: quicker than say the Fed is really willing to act.
Speaker 1: They still have to figure out how to deal with
Speaker 1: such a big difference between their desired inflation number and
Speaker 1: where we already are. Kathryn Kovinsky with Alpha Simplex, says
Speaker 1: she is closely watching next steps. J Powell outlines in
Speaker 1: today's news conference, Well now, Nathan, we moved to the
Speaker 1: latest on disgraced FTX co founder Sam Bankman Freed. We're
Speaker 1: learning he plans to find extradition to the US and Bloomberg.
Speaker 1: Steve Rappaport joins US Live with Moore. Steve, good morning,
Speaker 1: Good morning, Karen and Nathan. US authorities can lobby the
Speaker 1: Bahamian government all they want to hand Bankman Freed over,
Speaker 1: but a group of advisors in London has the final say.
Speaker 1: That's because the island is a British Commonwealth, potentially tying
Speaker 1: up the case for years if Bankman Freed takes his
Speaker 1: fight all the way to the Privy Council. Meantime, of
Speaker 1: Bahamian judge denied bankt Free's request for bail, deeming him
Speaker 1: a flight risk. An extradition hearing is scheduled for February eighth,
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Day Break.
Speaker 1: All right, Steve, thank you. On a political note this morning,
Speaker 1: the Biden administration's ramping up tensions with China, planning to
Speaker 1: put China's leading maker of memory chips, and more than
Speaker 1: thirty other companies on its trade blacklist that would prevent
Speaker 1: them from buying certain American technology. All right, let's get
Speaker 1: you have to date on how stocks are faring this
Speaker 1: morning is and P futures are higher up a tenth
Speaker 1: of a percent. They're up three points, and our future
Speaker 1: is also up almost a tenth of upper cent, or
Speaker 1: twenty nine points, and ASDAG futures up about the same
Speaker 1: of nine points ten. Your treasury of three thirty seconds,
Speaker 1: the three point four nine percent in the yield on
Speaker 1: the two year four point one seven percent, and n
Speaker 1: i'm ex scrud oil is at one point one percent
Speaker 1: of eighty two cents at seventy six dollars twenty one
Speaker 1: cents of barrel. Try to head your latest local headlines
Speaker 1: plus a check of sports. And this is Bloomberg. All right, Karen, Thanks,
Speaker 1: It's five thirty one on Wall Street and Amy Morris
Speaker 1: is here with a look at what's going on in
Speaker 1: New York and around the world. Amy, good morning, Good morning, Nathan.
Speaker 1: A New York Police Department evidence center in a warehouse
Speaker 1: in Brooklyn has partially collapsed after a three alarm fire
Speaker 1: broke out yesterday. Fire chief John Hodgens says everything inside
Speaker 1: the facility has either lost or damage. This building is
Speaker 1: not really a very sturdy type of building. It's a
Speaker 1: metal building with trust construction, which has a launched collapse potential,
Speaker 1: which is why we fact on thembers out of the building.
Speaker 1: The fire is expected to keep earning for days. Lawmakers
Speaker 1: have hammered out a deal in a framework to fund
Speaker 1: the government this fiscal years, and a Republican leader, Mitch
Speaker 1: McConnell says they have to be done by December two,
Speaker 1: intend not to be back here between Christmas and New
Speaker 1: Year's and if we can't meet that deadline, would be
Speaker 1: happy to pass a short term cr in two early
Speaker 1: next year. McConnell says a short term bill is the
Speaker 1: most likely solution and that lawmakers will likely take up
Speaker 1: an omnibus spending bill in the new year. Advocates calling
Speaker 1: on a federal judge to immediately pause New York City's
Speaker 1: initiative to involuntarily hospitalize those suffering from mental health episodes.
Speaker 1: Miranda Van Dalen with New York Lawyers for Public Interests
Speaker 1: says the mayor's plan is unconstitutional and violates the Americans
Speaker 1: with disabilities that people are now scared to leave their
Speaker 1: homes because they think that they may get picked up
Speaker 1: by the police and involuntarily transported to a hospital for
Speaker 1: psychiatric evaluation. New York Mayor Adams says it's not a
Speaker 1: police let initiative and officers are being trained on who
Speaker 1: would meet the criteria. Sandy Hook School massacre took place
Speaker 1: ten years ago to day. Twenty children and six adults
Speaker 1: were killed. In June, President Biden signed a law into
Speaker 1: into law, a landmark gun legislation package bolstering mental health programs.
Speaker 1: Global News twenty four hours a day on airand on
Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred
Speaker 1: journalists and analysts and more than one hundred twenty countries.
Speaker 1: Any Morris, this is Bloomberg, Nathan. Thanks Amy three on
Speaker 1: Wall Street time for the Bloomberg Sports Update, brought to
Speaker 1: you by tri State out He here's John Stenshower. All right, Nathan,
Speaker 1: it's great to be a free agent shortstop. Three of
Speaker 1: them just signed contracts worth nine hundred and thirty million dollars.
Speaker 1: First it was Trade Turner to the Phillies, and then
Speaker 1: Xander Bogars to San Diego. Carlos Carea headed to the
Speaker 1: San Francisco Giants thirteen years, three hundred and fifty million,
Speaker 1: the Giants using money they had originally hoped to use
Speaker 1: on Aaron Judge. The Yankees remained quiet other than keeping
Speaker 1: Judge on the ice. Devil's cooling off lost at home
Speaker 1: to Dallas four one, their third straight lost. Islanders in Boston,
Speaker 1: with the Bruins have only lost once all season. The
Speaker 1: Bruins won for three in a shootout hat trick for
Speaker 1: Alex Ovechkin and Washington's win. The last of the three
Speaker 1: was career goal number eight hundred. Nicks go for a
Speaker 1: fifth straight win tonight in Chicago. Marocco has made it
Speaker 1: to the World Cup semifinals by allowing only one goal
Speaker 1: in five games. That was an own goal put in
Speaker 1: by their own player. They've already upset Spain in Portugal.
Speaker 1: Today Morocco takes on defending champion France. The winner faces
Speaker 1: Argentina in Sunday's final. Sunday Night, huge game for the
Speaker 1: Giants in Washington. They just had that tie with the Commanders,
Speaker 1: so the two teams were tied in the standings. Brian
Speaker 1: Day Boles team winless in the last four games. It's
Speaker 1: a long season. There's quite a bit of adversity throughout it.
Speaker 1: Maybe it's you know, for some teams, it's in the beginning,
Speaker 1: for some teams, it's the middle, for other teams at
Speaker 1: the end. You know, we're going through a little bit
Speaker 1: of it right now, and I think it's important to
Speaker 1: stay consistent um do the things that you need to
Speaker 1: do to try to win games. Washington only one loss
Speaker 1: in the last eight games. Jet Sunday host Detroit. The
Speaker 1: Lions have won five of the last six. John Stash
Speaker 1: Bloomberg Sports Nathan. Thanks John Bloomberg Sports Spot to you
Speaker 1: by Audie. Don't let someone else drive off in the
Speaker 1: Audi model you've always wanted. Visit your local Tri State
Speaker 1: Audie dealer to get behind the wheel of yours today,
Speaker 1: or visit Autie Offers dot com for more information on
Speaker 1: Wall Street time for the Tri State Business Report. Here
Speaker 1: with that Bloomberg's Cory Commuters are spending more time on buses, trains,
Speaker 1: and metros as people travel longer distances between work and
Speaker 1: home and continue to avoid rush hour crowds in the
Speaker 1: wake of the pandemic. The average commute increased by four
Speaker 1: minutes in New York City as well as Toronto and
Speaker 1: Milan this year compared to Bowshalth investors lost a legal
Speaker 1: fight to block the planned spinoff of its eye care business,
Speaker 1: which they alleged was an improper shifting of assets to
Speaker 1: protect the company from lawsuits. Of Superior court judge in
Speaker 1: Somerset County, New Jersey, ruled it would not be proper
Speaker 1: to intervene because the spinoff was not imminent. New York
Speaker 1: is getting closer to welcoming a new high end skyscraper.
Speaker 1: Co Star reports One Madison Avenue, from Manhattan's biggest office
Speaker 1: landlord sl Green Realty, celebrated its topping out on Tuesday.
Speaker 1: The building which broke ground back in two thousand twenty
Speaker 1: has landed tech giants IBM as anchored tenant, Magrew Bloomberg,
Speaker 1: Trying State Business Reboard, IMD Corey, Thank you ed. It
Speaker 1: is six on Wall Street. The following is an editorial
Speaker 1: from Bloomberg Opinion. This editorial was written by the Bloomberg
Speaker 1: Editorial Board. Is the age of nuclear fusion finally dawning?
Speaker 1: After decades of research, scientists have been making serious progress.
Speaker 1: This week came news of the latest milestone. Scientists in
Speaker 1: California recently induced a fusion reaction that produced a net
Speaker 1: energy gain. In other words, it generated more power than
Speaker 1: it consumed. Net gain has been the elusive loadstar of
Speaker 1: fusion research since the nineteen fifties. Realizing it should give
Speaker 1: a major boost to global research efforts and offer a
Speaker 1: tantilizing glimpse of fusion's real world possibilities. As the science advances,
Speaker 1: global cooperation will be essential, and above all, governments must
Speaker 1: avoid the sort of red tape that has needlessly held
Speaker 1: up traditional fission projects. Unlocking the power of the stars
Speaker 1: will be no easy feat. This editorial was written the
Speaker 1: Bloomberg editorial board. For more Bloomberg opinion, please go to
Speaker 1: Bloomberg dot com, slash opinion or O P I N
Speaker 1: go on the Bloomberg terminal. This has been Bloomberg opinion,
Speaker 1: and you can hear Bloomberg opinion editorials every weekday at
Speaker 1: this time. Terminal customers can read more at O P
Speaker 1: I N go. It is seven on Wall Street. We've
Speaker 1: been telling you about the US adding more than thirty
Speaker 1: Chinese companies to its trade blacklist, where Bloomberg News has
Speaker 1: also learned that Chinese leaders are planning to proceed with
Speaker 1: a closely watched economic policy meeting in Beijing tomorrow That
Speaker 1: comes as COVID infections continue to surge across the Chinese capital.
Speaker 1: Senior Chinese officials meet every December to plot out economic
Speaker 1: policy for the coming year. It's not five thirty eight
Speaker 1: on Wall Street. Straight ahead. On daybreak, we'll get to
Speaker 1: the latest on the ft X saga as Sam Bankman
Speaker 1: Freed apparently plans to fight extradition from the Bahamas. We
Speaker 1: will get the update for you next from Bloomberg Cross
Speaker 1: Asset editor Joanna Ostnger. This is Bloomberg Markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: at Bloomberg Business at Land, at Bloomberg Quicktape. She's a
Speaker 1: Bloomberg Business Flash and I'm Karen Moscow. This update brought
Speaker 1: to you by Sei Ya said. Managers don't get results
Speaker 1: that are off the charts from their solutions are off
Speaker 1: the shelf. Learn how sci is operating platform can turn
Speaker 1: infrastructure into a competitive advantage At s c i C
Speaker 1: dot Com, slash Tech US dot Index futures are little
Speaker 1: change this morning, Investors, debating whether inflation has eased enough
Speaker 1: to encourage the federal reserved to slow monetary tightening. We
Speaker 1: checked the markets all day long right here on Bloomberg
Speaker 1: SMP futures Again little change and so are down in
Speaker 1: NOWNSDAG futures. The decks in Germany's down seven tenths of
Speaker 1: upper set ten. Your treasury up three thirty seconds. You're
Speaker 1: three point four nine percent. They yield on the two
Speaker 1: year four point one seven percent. Dimex Screwed oil is
Speaker 1: at one point one percent of seventy seven cents at
Speaker 1: seventy six dollars sixteen cents of Arrol Comic School down
Speaker 1: three tenths per cent or five dollars seventy cents at
Speaker 1: eighteen nineteen seventy announced the euro one point six five
Speaker 1: eight against the dollar, British pound one point to three
Speaker 1: nine two then one thirty four point seven five and
Speaker 1: Bitcoin this morning at a third of a percent at
Speaker 1: seventeen thousand, eight hundred dollars. And as a Bloomberg business flash,
Speaker 1: now here's Amy Morris with Moore on what's going on
Speaker 1: around the world. Amy think you care in the White
Speaker 1: House asking Congress for resources to help mitigate an influx
Speaker 1: of migrants crossing the US Mexico border. Democrats want to
Speaker 1: work with Republicans on bipartisan immigration reform as the title
Speaker 1: forty two policy is set to end in a week.
Speaker 1: A new report from the CDC says long COVID played
Speaker 1: a part in more than thirty five hundred deaths in
Speaker 1: the US. Most who died from long COVID were older,
Speaker 1: white men and sports. In the NHL, Al Jovetchkin reaches
Speaker 1: eight hundred career goals as the Caps one the Doubl's lost,
Speaker 1: The Bruins beat the Islanders. In the NBA, the Celtics
Speaker 1: win in the Warriors Slopes global names twenty four hours
Speaker 1: a day on errand on Bloomberg Quick Take, bowered by
Speaker 1: more than twenty seven hundred journalists and analysts in more
Speaker 1: than one hundred twenty countries. I'm anymore is this is Bloomberg, Nathan,
Speaker 1: Thank you Amy. It is forty two on Wall Street.
Speaker 1: This is Bloomberg Daybreak. I'm Nathan Hagar alongside Karen Moscow. So,
Speaker 1: like some of the other stories making news this morning,
Speaker 1: Apple is preparing to allow alternative app stores on its
Speaker 1: iPhones and iPads. We get that story from Bloomberg's Charlie Cellett.
Speaker 1: It is part of a sweeping overhaul aimed at complying
Speaker 1: with strict European Union requirements coming in twenty twenty four.
Speaker 1: Sources say software engineering and services employees are engaged in
Speaker 1: a major push to open up key elements of Apple's platforms.
Speaker 1: As part of the changes, customers could ultimately download third
Speaker 1: party software to their iPhones and iPads without using the
Speaker 1: company's app store, sidestepping Apple's restrictions and the up to
Speaker 1: thirty percent commission it imposed is on payments in New York.
Speaker 1: Charlie Pellic Bloombird, day break Right, Charlie Thanks Well. Elon
Speaker 1: Musk reportedly is taking drastic steps to cut costs of Twitter.
Speaker 1: According to The New York Times, Twitter has not paid
Speaker 1: rent for its San Francisco headquarters or any of its
Speaker 1: global offices for weeks. It's also considering not paying severance packages,
Speaker 1: and has refused to pay an almost two hundred thousand
Speaker 1: bill for charter flights the week of Musk's takeover. Well,
Speaker 1: this isn't the kind of cut that Elon Musk might
Speaker 1: like to see. Karen. He is no longer the world's
Speaker 1: richest person on the Bloomberg Billionaires Index, Elon Musk has
Speaker 1: been displaced by Bernard on No who owns almost fifty
Speaker 1: percent of the French luxury giant LVMH. According to the
Speaker 1: Billionaires Index, Musk has seen his fortune tumble by more
Speaker 1: than a hundred billion dollars since January. The Tesla, Twitter
Speaker 1: and space X boss is now worth just under one
Speaker 1: sixty four billion dollars, enough to put him in second
Speaker 1: place now, and Tesla's stock is down more than fifty
Speaker 1: percent this year. Now to another story we're watching this morning,
Speaker 1: the case against Sam Bankman Freed, a story where no
Speaker 1: doubt going to be following for weeks, if not months
Speaker 1: to come. Federal prosecutors and regulators are laying out fraud
Speaker 1: allegations against the ft X founder, as Bankman Freed indicates
Speaker 1: he will fight extradition from the Bahamas. Let's get the
Speaker 1: latest live now from Bloomberg News Cross Asset editor Joanna Ostinger,
Speaker 1: who's been following from the get go. Joanna, Good morning.
Speaker 1: Since last we spoke. We got the eight count indictment
Speaker 1: from federal prosecutors. What more does it tell us about
Speaker 1: the scheme Sam Bankman Freed is accused of running. Well, Nathan,
Speaker 1: it tells us that this is pretty wide ranging. I
Speaker 1: mean we have the civil charges from the Securities and
Speaker 1: Exchange Commission, the Federal The criminal charges are now wire fraud,
Speaker 1: conspiracy to commit securities fraud, and then there are other
Speaker 1: accounts for allegedly misappropriating billions of dollars and customer funds
Speaker 1: for personal use and risky best by elan to research.
Speaker 1: So this is a pretty wide ranging case. Again, it
Speaker 1: looks like it's been done with such a speed that
Speaker 1: they may feel like they are very strong evidence. And
Speaker 1: then of course there are even the Commodity Futures Trading
Speaker 1: Commission charges as well. So there's a lot coming at
Speaker 1: them Bank and Freed right now. And it's um, it's
Speaker 1: on a variety of fronts. Well, I have a prosecutors
Speaker 1: alleged that the arrangement worked between f t X and
Speaker 1: the Alameda Research Trading Arm. What's the what's the potential
Speaker 1: for criminality that prosecutors are looking at here? Well, they're
Speaker 1: looking at a lot of things just regarding favored status
Speaker 1: and where the money flows went, where they might not
Speaker 1: have really where it might not have been legal, like
Speaker 1: with money used for Alameda that should have been squirreled
Speaker 1: away for f t X, for instance. There's also a
Speaker 1: little interesting factoids that Alameda was getting uh split second
Speaker 1: advantage in trading on f t X, which some people
Speaker 1: had suspected but f t X had long denied. So
Speaker 1: there are a number of things coming out about just
Speaker 1: this close relationship and the use of funds and the
Speaker 1: use of this the whole apparatus that may be uh
Speaker 1: that may have been illegal. Now when you think about
Speaker 1: the implications for algorithmic trading, when you think about milliseconds
Speaker 1: being like years for that kind of trading, I mean,
Speaker 1: what does that say about the the the kind of
Speaker 1: scheme that Sam bankman Fried was accused of doing here. Yeah, well,
Speaker 1: as you say, it's every little bit counts, And so
Speaker 1: if you have an edge, even if milliseconds there, if
Speaker 1: there's some little thing in the operations or an algorithms
Speaker 1: that could give an advantage in one way or the
Speaker 1: other to Alameda, that could have given them a huge
Speaker 1: advantage as opposed to the other participants in the system.
Speaker 1: And that does seem like it's what people are looking at,
Speaker 1: what prosecutors are looking at now on top of the prosecutions,
Speaker 1: the potential regulatory complaints as well. We've got hearings still
Speaker 1: going on on Capitol Hill in Washington, d C. And
Speaker 1: some really blunt testimony from the new CEO of f
Speaker 1: t X. What were some of your takeaways from what
Speaker 1: John Ray had to say. Well, a lot of it
Speaker 1: isn't too surprising, Nathan, right, he's saying that probably they
Speaker 1: won't be able to recoup all the customer funds. But
Speaker 1: I did think it was interesting too that he said
Speaker 1: they might be able to get more from the US ARM.
Speaker 1: There has been some speculation about exactly how much f
Speaker 1: t X US customers might get versus f t X overall,
Speaker 1: but it looks like f t X U s might
Speaker 1: be able to find some money here there, so I
Speaker 1: might do a little bit better. But in general, it
Speaker 1: seems like he's still saying, look, there's there won't necessarily
Speaker 1: be a lot if you're a customer or an investor.
Speaker 1: For at the end of this now we have a
Speaker 1: Sam bankman. Freed is still in custody in the Bahamas
Speaker 1: awaiting his next sex tradition hearing. I guess in a
Speaker 1: couple of months here. Uh, it seems as though he's
Speaker 1: going to be uh fighting extradition. In our last minute here,
Speaker 1: what are the chances that Sam Bankman Freed returns to
Speaker 1: the US anytime soon? Well, it's touching no chances, right,
Speaker 1: because there are so many variables from you know, the
Speaker 1: the judge and hearing to what the different countries decide
Speaker 1: to choose or their strategy. But he is fighting it,
Speaker 1: which is interesting because from comments he had made before,
Speaker 1: he had said, you wanted to help out and everything.
Speaker 1: But it could be months now, it could be years,
Speaker 1: and some of that may depend on what the Bahamas
Speaker 1: want to do. The US does appear to want to
Speaker 1: get him back as soon as possible, but it's looking like,
Speaker 1: as you said, it will be at least a couple
Speaker 1: of months until that initial hearing, and then um could
Speaker 1: be much longer from there, so I could take a while. Yeah,
Speaker 1: we've seen some other high profile figures fight extradition from
Speaker 1: UK itself and it's a Commonwealth I think of Julian
Speaker 1: Osange in particular. That's an extradition process that literally took years.
Speaker 1: So the possibility we could be following this really for
Speaker 1: quite some time. Thanks as always, Bloomberg News cross s
Speaker 1: at Editor Joanna Ostinger following the f t X, SAGA
Speaker 1: and Sam Bankman freed forests. This morning, SFP futures right
Speaker 1: now down one point down, Future is down six and
Speaker 1: Danstack futures are lower by thirteen points Tenure Treasury is
Speaker 1: up one thirty second, the yield three point four nine percent.
Speaker 1: Bitcoins trading higher by three tenths percent right now, right
Speaker 1: around seventeen thousand, eight hundred, All this ahead of a
Speaker 1: FED decision this afternoon. You're listening to Bloomberg day Break, markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com, the Bloomberg Business Outland at Bloomberg Victaque.
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow
Speaker 1: and US Dock Index futures they are little change this morning.
Speaker 1: Investors debating whether inflation has eased enough to encourage the
Speaker 1: Fed to slow monetary tightening. The check the markets all
Speaker 1: day long. Yere at Bloomberg and SNP and Dow futures
Speaker 1: are a little change, So were nasdack futures. The decks
Speaker 1: in Germany is down about three quarters of a percent.
Speaker 1: Ten Your Treasury up one thirty second, deal three point
Speaker 1: four nine percent. They yield on the two year four
Speaker 1: point one eight percent, and nim X screwed oil is
Speaker 1: up nine tenths per cent, or sixty six cents at
Speaker 1: seventy six dollars five cents of barrel. And that's a
Speaker 1: Bloomberg business flash. Nathan Okay, Karen, thanks for coming up
Speaker 1: to five fifty six on Wall Street. It's time for
Speaker 1: our daily Bloomberg Law Brief, exploring legal issues in the news.
Speaker 1: Today we look at Indiana, which has filed two novel
Speaker 1: lawsuits against TikTok. They claimed the Chinese own social media
Speaker 1: platform misleads consumers by exposing children to inappropriate content and
Speaker 1: allowing China access to their data. Now, this is the
Speaker 1: first time a state has sued TikTok, even though the
Speaker 1: federal government has been fighting to ban the app or
Speaker 1: reduce its affiliations with China. For more, Bloomberg's June Grosso
Speaker 1: speaks with Fred Tate. He as a law professor at
Speaker 1: Indiana University who just so happens to specialize in information privacy.
Speaker 1: The Indiana Attorney General is claiming that TikTok misleads consumers
Speaker 1: parents about the age appropriateness of its content. Right. One
Speaker 1: lawsuit is claiming exactly what you said, and what they're
Speaker 1: really saying is that TikTok is not behaving consistent with
Speaker 1: the requirements of the Apple Store and the Androids Store,
Speaker 1: so that they're labeling of their app in terms of
Speaker 1: the age appropriateness is not accurate. And so the legal
Speaker 1: claim there is that they're misleading Apple and Androids, but
Speaker 1: at the effect is to mislead parents and you know,
Speaker 1: people in Indiana. And then the other claim is that
Speaker 1: TikTok is claiming that it does not share data customer
Speaker 1: data with the Chinese government, and the Attorney General is
Speaker 1: alleging that they do. Now, that's not illegal to share
Speaker 1: information with the government. Lots of social media site share
Speaker 1: information with the government, including with the US government. The
Speaker 1: argument would be that it's a fraud to say you're
Speaker 1: not sharing when in fact you are sharing. Is it
Speaker 1: going to be difficult to prove that TikTok is not
Speaker 1: describing accurately the appropriateness of its app for children, because
Speaker 1: whether there's enough notification or whether it's misleading, could that
Speaker 1: be in the eye of the beholder. It will be
Speaker 1: very complicated to prove because it's not enough to just
Speaker 1: say it's misleading, but generally you would have to show
Speaker 1: that it's misleading and that it's material, that it's misleading
Speaker 1: in a way that consumers would care about, and then
Speaker 1: that it's either not easily detected or not easily avoided,
Speaker 1: because you know, sometimes if you're misled about something, but
Speaker 1: if you just open your eyes you can see that
Speaker 1: it's not the way it was laid out to be,
Speaker 1: then it's okay. So they're gonna have to show a
Speaker 1: lot of things. And a related issue is is it
Speaker 1: a pattern of this or I mean, really, all filters
Speaker 1: let something through that somebody doesn't like, and so that's
Speaker 1: not going to be enough to just show, hey, you know,
Speaker 1: my ten year old son got something on TikTok that
Speaker 1: was inappropriate. You're going to have to show that this
Speaker 1: is a regular pattern and that TikTok knows about it
Speaker 1: or isn't acting reasonably to prevent it. And I think
Speaker 1: that will actually be very hard to show, because you know,
Speaker 1: anyone who uses the Internet knows first of all that
Speaker 1: a sense is often in the eye of the beholder,
Speaker 1: and second of all that even the best filters, the
Speaker 1: best design filters, are usually evated. That's Indiana University law
Speaker 1: professor Fred Kate speaking with Bloomberg's June Grosso. You can
Speaker 1: catch more of that interview, plus analysis of the latest
Speaker 1: legal news, by subscribing to the Bloomberg Law podcast or
Speaker 1: downloading the show at Bloomberg dot com. Slash podcasts, and
Speaker 1: attorneys can find exceptional legal research and business development tools
Speaker 1: at Bloomberg Law dot com and on the Bloomberg terminal
Speaker 1: at b Law Go. Looking ahead to the market open
Speaker 1: and this afternoon's FED decision, the final policy decision of
Speaker 1: futures are little change. Sp futures unchanged right now down
Speaker 1: futures up nine points, NASTAC futures down five ten, your
Speaker 1: treasury up one thirty second yield three point four nine
Speaker 1: per cent. We checked the business headlines, all the news
Speaker 1: you need to start your day. Hour two of Bloomberg
Speaker 1: Daybreak starts now.