WEBVTT - Bloomberg Daybreak: December 14, 2022 - Hour 1 (Radio) 0:00:01.760 --> 0:00:05.039 Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg 0:00:05.120 --> 0:00:09.000 day Break for Wednesday, December fourteen two. Coming up this hour, 0:00:09.160 --> 0:00:11.840 the FED makes its final policy decision of the year 0:00:11.880 --> 0:00:14.800 with a fifty basis point hike, expecting the UK inflation 0:00:14.840 --> 0:00:16.720 dips from a forty one year high. You head of 0:00:16.800 --> 0:00:19.640 tomorrow's Bank of England decision. F t X co founder 0:00:19.680 --> 0:00:22.880 Sam Bankman Freed plans to fight extradition to the US, 0:00:23.000 --> 0:00:25.560 and the US plans to add more than thirty Chinese 0:00:25.560 --> 0:00:28.680 companies to its trade blacklist. I'm Amy Morris. A three 0:00:28.680 --> 0:00:32.040 alarm fire at a police evidence warehouse could burn for days, 0:00:32.240 --> 0:00:34.760 and our area is buckling up for more winter weather 0:00:34.840 --> 0:00:37.559 this week. I'm John stash Ourn sports another big baseball 0:00:37.640 --> 0:00:40.600 free agent signing. The Islanders and Devils both lost the 0:00:40.600 --> 0:00:45.720 World Cup semifinals, and today that's all s trended ahead 0:00:45.800 --> 0:00:49.360 on Bloomberg day Break on Bloomberg eleven, Free on New York, 0:00:49.560 --> 0:00:53.240 Bloomberg nine nine one, Washington d C, Bloomberg one O 0:00:53.360 --> 0:00:57.960 six one, Boston, Bloomberg nine sixties and Francisco Sirius x 0:00:57.960 --> 0:01:00.960 AM one nineteen and around the World Old on Bloomberg 0:01:01.000 --> 0:01:08.199 Radio dot Com and via the Bloomberg Business App. Good morning, 0:01:08.200 --> 0:01:11.080 I'm Nathan Hagar and I'm Karen Moscow. In US stock 0:01:11.120 --> 0:01:14.200 index futures are little change this morning. It is five 0:01:14.240 --> 0:01:16.080 the one on Wall Street, and we check the markets 0:01:16.080 --> 0:01:18.400 all day long here at Bloomberg Radio. Again, U s 0:01:18.480 --> 0:01:20.720 and P futures are a little change, so are down 0:01:20.760 --> 0:01:24.160 in NASDAG futures. The decks in Germany lower down six 0:01:24.200 --> 0:01:27.040 tents of a percent. The ten year treasury of three 0:01:27.040 --> 0:01:29.399 thirty seconds heel three point four eight percent, and they 0:01:29.480 --> 0:01:33.759 yield on the two year four point one eight percent. Nathan, Karen. 0:01:34.000 --> 0:01:37.680 It is a big week for critical economic events and 0:01:37.800 --> 0:01:42.240 it continues today with the Federal Reserves final policy decision 0:01:42.319 --> 0:01:45.520 of two. Let's get our coverage started with a preview 0:01:45.560 --> 0:01:49.640 now from Bloomberg Economics correspondent Michael McKee. Beneficials are going 0:01:49.680 --> 0:01:52.240 to raise the nation's benchmark lending rate by half a 0:01:52.280 --> 0:01:55.840 percentage point today. The question is what will they do next? 0:01:56.280 --> 0:02:00.240 After two consecutive soft CPI reports, investors are lower their 0:02:00.280 --> 0:02:03.080 bets on how high the Fed goes and for how long. 0:02:03.640 --> 0:02:06.800 That puts the focus on policymakers. New economic and interest 0:02:06.880 --> 0:02:10.320 rate forecasts and the so called dot plot that shows 0:02:10.360 --> 0:02:12.480 where they think rates will need to be at the 0:02:12.600 --> 0:02:15.679 end of next year. In September, the median dot was 0:02:15.720 --> 0:02:18.919 at four point six markets now see them at four 0:02:18.960 --> 0:02:23.280 point three percent after rate cuts beginning in July. Investors 0:02:23.280 --> 0:02:25.840 will also focus on how chair j Pal sees the 0:02:25.919 --> 0:02:29.280 data and the outlook. Will he again warn against over 0:02:29.320 --> 0:02:33.079 confidence on Wall Street? Michael McKee Bloomberg Daybreak, All right, Mike, 0:02:33.080 --> 0:02:35.840 thank you well after today. The Feds and next steps 0:02:35.880 --> 0:02:39.200 depend on the path of economic data, so says influential 0:02:39.200 --> 0:02:43.280 economist and Stanford University professor John Taylor. If it's fifty 0:02:43.280 --> 0:02:47.280 basis points uh at this decision, then don't lead on 0:02:47.320 --> 0:02:51.399 a twenty five or seventy five or another fifty. It depends, 0:02:51.639 --> 0:02:54.160 you know, the idea of Monterrey policies. It depends on 0:02:54.240 --> 0:02:57.440 what's happened to inflation, what's happened to real o'connorwey. We 0:02:57.520 --> 0:03:01.079 hope we don't have another downturn and and we can 0:03:01.120 --> 0:03:04.639 avoid that if in fact, that says, look, if inflation 0:03:04.680 --> 0:03:08.560 picks up, we will take action. Stanford professor John Taylor 0:03:08.600 --> 0:03:11.280 may have a comments in an interview with Bloomberg's Kathleen Hey. 0:03:11.400 --> 0:03:14.120 Stay tuned for complete coverage of today's FED decision on 0:03:14.160 --> 0:03:17.240 a special edition of Bloomberg Surveillance. It all begins at 0:03:17.280 --> 0:03:20.680 one thirty pm Wall Street Time on Bloomberg Radio and Television. 0:03:20.760 --> 0:03:23.160 We're caring that FED decision comes after a key gauge 0:03:23.200 --> 0:03:26.040 of consumer prices posted its smallest gain in more than 0:03:26.080 --> 0:03:29.000 a year, and that fueled a surge in stocks. At 0:03:29.080 --> 0:03:32.440 yesterday's opening bell, the SMP five hundred rows as much 0:03:32.440 --> 0:03:35.120 as two point eight percent before pairing those games to 0:03:35.200 --> 0:03:38.760 close higher by three quarters of one percent. Garg Choundry 0:03:38.840 --> 0:03:42.200 is Black Rock's head of I shares investment strategy. Policy 0:03:42.360 --> 0:03:45.440 is looking everything that the FED has been doing, as 0:03:45.520 --> 0:03:48.040 difficult as that has been for the markets. What the 0:03:48.080 --> 0:03:51.000 inflation data today shows us that it is It is 0:03:51.040 --> 0:03:54.000 going in the right direction bike rocks. Garge Choundry notes 0:03:54.040 --> 0:03:56.920 that overall CPI increased one tenth of a percent from 0:03:56.960 --> 0:03:59.240 the prior month, bringing inflation to an annual rate of 0:03:59.280 --> 0:04:02.560 seven point and percent. Nathan Inflation is also a front 0:04:02.640 --> 0:04:05.040 end center in the UK with fresh data, I head 0:04:05.080 --> 0:04:07.600 up tomorrow's Bank of England decision and let's go alive 0:04:07.640 --> 0:04:10.120 to London and get the latest with Bloomberg's un Parts 0:04:10.200 --> 0:04:13.080 you and good morning, Good morning Karen, Nathan. Another of 0:04:13.080 --> 0:04:16.640 the world's biggest economies is seeing a softening of inflation. 0:04:16.680 --> 0:04:19.599 Consumer prices in the UK rose ten points seven percent 0:04:19.720 --> 0:04:22.719 in November from a year earlier. That was down from 0:04:22.839 --> 0:04:25.839 eleven point one percent in the previous month and lower 0:04:25.839 --> 0:04:28.360 than forecasts. The data will be studied by the Bank 0:04:28.400 --> 0:04:31.080 of England ahead of their rate decision tomorrow, but with 0:04:31.160 --> 0:04:34.640 inflation more than five times over targets, no one is 0:04:34.720 --> 0:04:37.880 yet calling victory in this particular battle in London. I'm 0:04:37.880 --> 0:04:40.080 you and parts Bom Big day Break, Okay you and thanks. 0:04:40.160 --> 0:04:43.040 Let's turn down to the latest developments on Sam Bankman free, 0:04:43.160 --> 0:04:46.479 the FTX co founder, he plans to fight extradition to 0:04:46.520 --> 0:04:50.040 the US. Bloomberg Steve Rappaport joins US Live with the details. 0:04:50.040 --> 0:04:53.000 Good morning Steve, Good morning Nathan and Karen. Bringing Sam 0:04:53.000 --> 0:04:55.960 Bankman freed home from the Caribbean might require help from 0:04:56.000 --> 0:04:59.160 across the pond. The Bahamas is a British Commonwealth country, 0:04:59.200 --> 0:05:01.880 and final appe us on extradition are handled by London's 0:05:01.920 --> 0:05:04.920 Privy Council, a formal body of advisors to the Sovereign 0:05:04.920 --> 0:05:08.400 of the UK. While announcing the charges, Federal Prosecutor Damien 0:05:08.440 --> 0:05:10.719 Williams had a warning for anyone who may have helped 0:05:10.720 --> 0:05:14.479 bankman Freed, I would strongly encourage you to come see 0:05:14.560 --> 0:05:17.159 us before we come see you. If history is an indicator, 0:05:17.200 --> 0:05:20.200 Bankman Freed may have bought plenty of time. Eight men 0:05:20.200 --> 0:05:23.000 facing drug charges in the US fought extradition from the 0:05:23.040 --> 0:05:25.520 Bahamas for more than a decade. Live in New York. 0:05:25.520 --> 0:05:28.560 I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks well. 0:05:28.560 --> 0:05:31.160 Another round of hearings on the ft X collapse is 0:05:31.200 --> 0:05:33.960 coming up today in the Senate. New fd X CEO 0:05:34.080 --> 0:05:37.600 John Ray testified yesterday before the House Financial Services Committee. 0:05:37.680 --> 0:05:40.400 Republican Committee member Andy Barr joined us to give his 0:05:40.480 --> 0:05:44.640 takeaway on the hearing. There was absolute concentration of control 0:05:45.680 --> 0:05:48.880 of this business, in these various businesses, in the hands 0:05:48.920 --> 0:05:52.080 of a very small group of in his in his words, 0:05:52.480 --> 0:05:57.240 grossly inexperienced and unsophisticated individuals. We also spoke with the 0:05:57.240 --> 0:06:00.719 Democratic Committee member Brad Sherman, who says Sam Bankman Phrad's 0:06:00.839 --> 0:06:04.760 downfall points to a need for more crypto regulation. When 0:06:05.720 --> 0:06:09.440 you're dealing with an enterprise the whole purpose of which 0:06:09.880 --> 0:06:14.120 is to come up with a currency system that allows 0:06:14.160 --> 0:06:18.800 you to evade American financial law. Congressman Brad's going to 0:06:18.880 --> 0:06:21.440 be dealing with people who are going to evade American 0:06:21.480 --> 0:06:25.239 financial law. Congressman Brad Sherman and Andy Barr were guests 0:06:25.279 --> 0:06:28.279 on Bloomberg Sound Alma Joe Matthew. Catch the program weekdays 0:06:28.279 --> 0:06:31.120 at five pm Eastern on Bloomberg Radio. Right, let's turn 0:06:31.160 --> 0:06:34.080 to geopolitical news this morning, Karen, we are seeing rising 0:06:34.120 --> 0:06:38.400 tensions between the world's two economic superpowers. The Biden administration 0:06:38.400 --> 0:06:41.200 will put China's leading maker of memory chips and more 0:06:41.279 --> 0:06:45.000 than thirty other Chinese companies on its trade blacklist that 0:06:45.040 --> 0:06:49.520 would prevent them from buying certain American technology. SMP futures 0:06:49.600 --> 0:06:52.880 down to point, Dow futures up a point, Nastack futures 0:06:52.880 --> 0:06:55.440 are lower by eight points ahead of the Fed decision. Today, 0:06:55.680 --> 0:06:59.840 local headlines and a check of sports. Next, This is Bloomberg. 0:07:03.480 --> 0:07:05.640 It's a five oh seven on Wall Street where thirty 0:07:05.640 --> 0:07:08.000 one degrees in Central Park is gonna stay sunny, and 0:07:08.120 --> 0:07:10.840 Chile again today has only near forty down to the 0:07:10.880 --> 0:07:13.520 low thirties. Tonight, Amy Morris is here with more on 0:07:13.600 --> 0:07:15.600 what's going on in New York and around the world. 0:07:15.720 --> 0:07:18.800 Good morning Amy, Good morning Nathan. A three alarm fire 0:07:18.880 --> 0:07:21.880 has led the partial collapse of a New York Police 0:07:21.920 --> 0:07:25.400 Department evidence center in Brooklyn. The fire was first reported 0:07:25.400 --> 0:07:29.200 by Police Department contractors working inside the Auto Pound. Acting 0:07:29.280 --> 0:07:32.280 Chief Jeffrey Maddery says the workers saw the flames on 0:07:32.280 --> 0:07:34.560 one of the evidence shelves and called for help. They 0:07:35.280 --> 0:07:39.520 they alerted the Police Department personnel inside. Everyone backed out. 0:07:39.680 --> 0:07:43.120 FD was alerted. Fire officials say everything inside the facility 0:07:43.160 --> 0:07:45.520 has either been lost or damaged, and that fire is 0:07:45.560 --> 0:07:49.440 expected to continue burning for days. President Biden has signed 0:07:49.480 --> 0:07:53.120 the Historic Respect for Marriage Act, cementing federal protections for 0:07:53.240 --> 0:07:56.640 same sex and inter racial marriages into law. Who do 0:07:56.760 --> 0:07:59.840 you love and would you be loyal with that first 0:08:00.080 --> 0:08:04.800 you love? It's not more complicated than that. The law 0:08:04.960 --> 0:08:08.520 recognized that everyone should have the right to answer those 0:08:08.600 --> 0:08:15.280 questions for themselves without the government interference. President Biden says 0:08:15.360 --> 0:08:18.680 the law requires interracial marriage and same sex marriage be 0:08:18.760 --> 0:08:23.000 recognized as legal in every state. Now we told you yesterday. 0:08:23.040 --> 0:08:25.760 New York is encouraging people to mask up, but New 0:08:25.840 --> 0:08:28.520 Jersey won't be putting a mask mad aid in place. Well, 0:08:28.520 --> 0:08:31.880 now we're learning kinectic. Governor Ned Lamont also says there's 0:08:31.880 --> 0:08:34.360 no need at this point for a mandate. The Hartford 0:08:34.360 --> 0:08:37.679 Current reports. Lamont says he sees no immediate concerns, but 0:08:37.880 --> 0:08:40.600 he says you should wear a mask if you're showing 0:08:40.640 --> 0:08:43.000 any symptoms, and you should get a booster if you 0:08:43.040 --> 0:08:46.600 haven't yet. The chief epidemiologist at Hartford health Care, however, 0:08:46.640 --> 0:08:48.920 says you should wear a mask indoors as flu and 0:08:49.000 --> 0:08:51.760 COVID cases rise. Looks like we are going to get 0:08:51.800 --> 0:08:54.760 some more snow later in the week, mostly rain, with 0:08:54.880 --> 0:08:58.000 light snow in some areas. Most of that well Dland. 0:08:58.000 --> 0:09:00.320 It's going to be kind of gusty wind too. That 0:09:00.360 --> 0:09:03.560 could make for a nasty Friday morning commute. Global News 0:09:03.600 --> 0:09:05.920 twenty four hours a day on air and on Bloomberg Quicktake, 0:09:06.080 --> 0:09:09.280 powered by more than twenty seven hundred journalists and analysts 0:09:09.320 --> 0:09:12.400 in more than one d twenty countries. I'm Amy Morris. 0:09:12.440 --> 0:09:19.800 This is Bloomberg, Nathan al Amy Morris. Thank you five 0:09:19.840 --> 0:09:22.640 oh nine on Wall Street Time for the Bloomberg Sports Update, 0:09:22.679 --> 0:09:25.480 brought to you by Trice Stay Downey, Good morning, John 0:09:25.520 --> 0:09:28.640 Stash Hour, Morning Nathan. Another example of a baseball player 0:09:28.679 --> 0:09:32.080 who turned down a contract offer, hit free agency and 0:09:32.200 --> 0:09:35.320 made a ton more money. That happened with Aaron Judge, 0:09:35.400 --> 0:09:39.000 Andrew Bogarts and now Carlos. Korea used and offered him 0:09:39.040 --> 0:09:41.920 five years a hundred and sixty million dollars. Korea just 0:09:41.960 --> 0:09:46.400 signed with San Francisco thirteen years, three hundred and fifty million. 0:09:46.480 --> 0:09:50.640 Between Korea, Bogarts and Trade Turner. Three shortstops just signed 0:09:50.640 --> 0:09:53.640 contracts worth nine hundred and thirty million. The Devil's the 0:09:53.679 --> 0:09:56.160 last month had that thirteen game winning Streek have now 0:09:56.200 --> 0:09:58.600 lost their last three, beaten home by Dallas for to one. 0:09:58.640 --> 0:10:01.200 The Islanders lost in Boston four three in a shootout, 0:10:01.240 --> 0:10:05.240 Washington in Chicago and a milestone goal turn over in 0:10:05.400 --> 0:10:13.800 fraud and Manfustavus shots a store and its sala. It's 0:10:13.840 --> 0:10:19.280 a hundred goals in the National Hockey LEAGUEFK the call 0:10:19.440 --> 0:10:22.400 two more goals in Ovechkin passes Gordy how for second 0:10:22.400 --> 0:10:25.480 all time. He's still going strong at age thirty seven. 0:10:25.520 --> 0:10:27.120 He had a hat trick last night. We'll see if 0:10:27.600 --> 0:10:30.400 vescan can break a record that most felt was unreachable 0:10:30.480 --> 0:10:34.200 Wayne Gretzky's eight hundred and ninety four career goals. NBA 0:10:34.320 --> 0:10:37.280 Celtics beat the Lakers in overtime Utah in the New 0:10:37.360 --> 0:10:39.959 Orleans seven game winning streak battle to the last two champs. 0:10:40.040 --> 0:10:42.440 Milwaukee beat Golden State. That Nick's play tonight in Chicago. 0:10:42.559 --> 0:10:46.440 The World Cup. It's Defendie Champ France and Cinderella Morocco. 0:10:46.559 --> 0:10:50.280 The winner plays Argentina in Sunday's final. Mississippi State is 0:10:50.320 --> 0:10:53.000 going to play its bowl game, the school saying that's 0:10:53.040 --> 0:10:56.160 what coach Mike Leach would have wanted. Leech just passed 0:10:56.160 --> 0:10:59.360 away at sixty one. Leech was a true football innovator 0:10:59.520 --> 0:11:03.760 and a true character. John Bloomberg Sports, Thank you, John 0:11:03.800 --> 0:11:06.240 Bloomberg Sports was brought to you by Audie. Don't let 0:11:06.320 --> 0:11:09.720 someone else drive off in the Audi model you've always wanted. 0:11:09.880 --> 0:11:12.680 Visit your local Try State Audie dealer to get behind 0:11:12.720 --> 0:11:15.800 the wheel of yours today, or visit Autie Offers dot 0:11:15.880 --> 0:11:19.480 Com for more information. Markets in a kind of wait 0:11:19.559 --> 0:11:22.600 in C mode ahead of the Federal Reserve decision later 0:11:22.720 --> 0:11:25.800 on this afternoon, we have SMP futures right now down 0:11:26.080 --> 0:11:30.120 one point down, futures down three, NASAC futures lower by 0:11:30.200 --> 0:11:32.640 eight points. That is a little changed to the downside 0:11:32.679 --> 0:11:36.000 across the board. Tenure treasury is little changed as well. 0:11:36.080 --> 0:11:38.319 The yield on the benchmark ten year not three point 0:11:38.400 --> 0:11:40.480 five percent, and the yield on the two year is 0:11:40.559 --> 0:11:43.920 four point one eight percent. Nimex screwed up seven tenths 0:11:44.000 --> 0:11:47.840 percent seventy five nine cents a barrel. Comics gold down 0:11:48.080 --> 0:11:52.600 three tenths percent eighteen announced. The euro one point zero 0:11:52.720 --> 0:11:55.200 six six seven against the dollar, the end trading at 0:11:55.200 --> 0:11:58.640 the moment at one thirty five point zero three. This 0:11:59.080 --> 0:12:03.400 is Bloomberg. It's sound five twelve on Wall Street. You're 0:12:03.440 --> 0:12:06.680 listening to Bloomberg daybreak on Fed decision Day. The final 0:12:06.880 --> 0:12:12.200 policy move of two comes our way two pm, Wall 0:12:12.240 --> 0:12:14.240 Street time ahead of it. We are very pleased to 0:12:14.280 --> 0:12:18.520 be joined by Jennifer Lee, senior economist at BMO Capital Markets. 0:12:18.679 --> 0:12:21.640 Jen are we going to get anything other than fifty 0:12:21.640 --> 0:12:24.560 basis points? It seems like that's pretty well baked into 0:12:24.600 --> 0:12:27.400 this market. Oh, good morning. You know what um we 0:12:27.600 --> 0:12:30.120 have been. We're sticking with our fifty basis point move 0:12:30.320 --> 0:12:34.160 and our our call, and certainly yesterday's a CPI report, 0:12:34.200 --> 0:12:37.599 which um, wow, like that was when we were I 0:12:37.600 --> 0:12:39.400 can think of was wow after that's I've seen the 0:12:39.480 --> 0:12:43.600 headline increase much better than expected. I will certainly help 0:12:43.800 --> 0:12:46.120 solidify what he hinted at a couple of weeks ago. 0:12:46.280 --> 0:12:48.240 So I think we should all get ready to hear 0:12:48.280 --> 0:12:50.760 an updated version of that phrase. It's time to start 0:12:51.280 --> 0:12:53.400 moderating the pace of great heights. And that's not probably 0:12:53.440 --> 0:12:55.679 what he's going to say again this afternoon, but I 0:12:55.720 --> 0:12:59.880 would be very cautious to know, to to expect any 0:13:00.040 --> 0:13:02.920 think to doublish. You know, it would be very much 0:13:02.920 --> 0:13:06.839 of an abrupt shift if he changes his his his 0:13:07.040 --> 0:13:10.040 views on this one number. So you're not expecting that 0:13:10.240 --> 0:13:12.520 the FED chairman is going to say wow the way 0:13:12.600 --> 0:13:15.400 you did to that CPI reported. Is that what I'm 0:13:15.400 --> 0:13:19.080 hearing from you, I think he will, you know, be optimistic. 0:13:19.280 --> 0:13:21.240 You know, you know they they already said that about 0:13:21.240 --> 0:13:24.360 the October on CPI and hearing too. You know, having 0:13:24.440 --> 0:13:28.800 to modest UH increases in a row is encouraging. But 0:13:29.800 --> 0:13:33.120 his key freeze was UH was that he needed substantially 0:13:33.160 --> 0:13:36.160 more evidence, because you remember he said that that that 0:13:36.960 --> 0:13:39.880 November three, This was that he would take substantially more 0:13:39.960 --> 0:13:43.040 evidence to give them comfort that inslation that is actually declining. Now. 0:13:43.080 --> 0:13:46.040 Whether two or two months is enough, um, I highly 0:13:46.200 --> 0:13:48.640 highly doubt it, um, But you know, certainly this is 0:13:48.679 --> 0:13:50.719 a step in the right direction. Are you expecting any 0:13:50.760 --> 0:13:52.839 major changes then to the language in the f O 0:13:52.960 --> 0:13:56.800 m C statement, Any idea that we could see a 0:13:57.000 --> 0:14:00.240 little bit more explicit thought from the Fed on whether 0:14:00.240 --> 0:14:02.960 they're gonna take their foot off the gas even further 0:14:03.200 --> 0:14:06.839 from policy tightening. I think they're going to continue, you know, 0:14:07.000 --> 0:14:10.319 to to be cautious because it's it's just again, I 0:14:10.400 --> 0:14:13.360 still think it's too early to call the all clear 0:14:13.880 --> 0:14:17.200 on inflation. But at least he will he'll probably emphasize 0:14:17.240 --> 0:14:19.320 the point that rates will still need to be higher, 0:14:20.280 --> 0:14:23.080 higher than they expecting, you know, sometime ago. So even 0:14:23.120 --> 0:14:25.320 though they're going to be moderating the pace of rate heights, 0:14:25.560 --> 0:14:27.240 you know, instead of Sunday five, you know, word of 0:14:27.640 --> 0:14:29.800 getting fifty, and we have to remember fifty is still 0:14:29.920 --> 0:14:32.600 quite a bit as well. Um. But at least the 0:14:33.000 --> 0:14:35.840 pace is starting to modest to moderately uh slow, But 0:14:36.040 --> 0:14:38.600 they probably stay higher for longer be and then they 0:14:38.640 --> 0:14:41.160 would need a lot more evidence before they're comfortable, and 0:14:41.400 --> 0:14:44.280 she starts to at least stop raising rates and then 0:14:44.320 --> 0:14:46.880 at some point um cutting rates. But us I don't 0:14:46.880 --> 0:14:48.880 think that's gonna be part of the language or part 0:14:48.920 --> 0:14:51.480 of the vocabulary just yet. What do you think we'll 0:14:51.520 --> 0:14:55.640 get from the fens of economic projections? And how much 0:14:55.680 --> 0:14:58.520 stock do you put in those projections given how difficult 0:14:58.600 --> 0:15:02.360 it really has been to forecast this economy this year. Oh, 0:15:02.480 --> 0:15:04.760 I'll take it with a huge fistical assault. I mean, 0:15:05.080 --> 0:15:07.120 and you know it's it's it's not a crisi of criticism. 0:15:07.200 --> 0:15:08.920 It's just as he's just pointed out. I mean, it's 0:15:08.960 --> 0:15:12.120 so difficult to make accurate calls these days. And you know, 0:15:12.240 --> 0:15:14.560 I don't think anyone was calling for such a modest 0:15:14.560 --> 0:15:16.840 CPO number, for example, But I think they're going to 0:15:16.960 --> 0:15:20.880 probably um, you know, um um lower the I want 0:15:20.880 --> 0:15:23.320 to be staries that they lower the the GP forecast 0:15:23.440 --> 0:15:26.080 a little bit as well, But certainly I will I 0:15:26.160 --> 0:15:28.880 will see this, you know, that soft landing, sort of 0:15:28.960 --> 0:15:31.680 shallow downturn call. You know, it is looking better and better, 0:15:31.800 --> 0:15:34.120 and we might see some of that playing out in 0:15:34.240 --> 0:15:38.120 the forecast um this afternoon. Of course, one big vexing 0:15:38.280 --> 0:15:41.040 issue for this FED has been the ongoing tightness in 0:15:41.120 --> 0:15:44.560 the labor market and the concern that wage pressures will 0:15:44.640 --> 0:15:47.120 continue to feed into inflation. What do you think the 0:15:47.160 --> 0:15:50.160 FED is going to say about where unemployment needs to 0:15:50.280 --> 0:15:53.960 go to really tackle price pressures. So that is one 0:15:54.040 --> 0:15:56.400 area of which he hasn't really changed his tune too much. 0:15:56.760 --> 0:15:59.760 He continues to call the labor market very, very tight. 0:15:59.840 --> 0:16:02.360 And of this, you know, we're still seeing various very 0:16:02.480 --> 0:16:05.600 solid job increases on a month to month basis. But 0:16:05.680 --> 0:16:08.120 the fact that job vacancies have have have been taking 0:16:08.240 --> 0:16:10.760 lower UM is good news for them. And this is 0:16:10.800 --> 0:16:13.640 all going back to the whole how I've been saying that, 0:16:13.960 --> 0:16:16.040 you know, good is bad and bad is good. You know, 0:16:16.200 --> 0:16:18.440 so they will continue to to point to the labor 0:16:18.480 --> 0:16:20.760 market and they you know, and he's actually been sort 0:16:20.800 --> 0:16:23.440 of tweaking it, actually have a standing corrected. He teaches 0:16:23.440 --> 0:16:25.480 a little bit by saying that you know, it's um 0:16:25.800 --> 0:16:28.480 that it needs to come down a lot more and uh, 0:16:28.720 --> 0:16:30.800 you know before they can start up breathing a little 0:16:30.840 --> 0:16:33.280 bit easier as well, And so far we're not seeing 0:16:33.360 --> 0:16:35.400 that and it's going to be sometime I think before 0:16:35.960 --> 0:16:38.360 UM you know, we we see, um, some of the 0:16:38.440 --> 0:16:40.720 wage pressures ease a little bit now the the the 0:16:41.160 --> 0:16:44.640 NFIB survey I think earlier this uh this week did 0:16:44.760 --> 0:16:48.040 show that there was a smaller share of firms planning 0:16:48.120 --> 0:16:49.960 to raise work or compa the next a few months. 0:16:50.000 --> 0:16:51.760 So that's you know, that is a step also in 0:16:51.800 --> 0:16:55.280 the right inflationary direction. Our last thirty seconds here, I'll 0:16:55.280 --> 0:16:56.920 put you on the spot a little bit. When you 0:16:57.000 --> 0:16:59.680 see inflation getting back to target. Oh, it's going to 0:16:59.760 --> 0:17:01.720 take a few years, I think. You know, we we 0:17:01.840 --> 0:17:05.159 still have you know, uh ss demand, I guess. And 0:17:05.280 --> 0:17:07.760 of course this whole labor market tightness is not going 0:17:07.840 --> 0:17:10.760 to play out. Uh, this is not helping the inflation story. 0:17:11.000 --> 0:17:14.800 Uh um um handles, I guess. But we're gonna see 0:17:14.880 --> 0:17:17.560 we're starting to see obviously inflation coming down, but getting 0:17:17.680 --> 0:17:20.760 back towards the two ish range is probably something in 0:17:20.960 --> 0:17:26.399 in a late story. Thanks as always, Jen, great getting 0:17:26.440 --> 0:17:30.480 your thoughts. Jennifer Lee, Senior economist, BMO Capital Markets. Ahead 0:17:30.520 --> 0:17:32.960 of the final FED decision of the year two pm, 0:17:33.119 --> 0:17:35.920 Wall Street Time will find out where the Fed puts raids, 0:17:36.000 --> 0:17:38.360 and of course the news conference from Chairman Powell coming 0:17:38.440 --> 0:17:40.879 up at two thirty. We will have it all covered 0:17:41.040 --> 0:17:44.720 for you on a special edition of Bloomberg. Surveillance begins 0:17:44.760 --> 0:17:47.880 at one thirty pm Wall Street Time. You can catch 0:17:47.960 --> 0:17:52.399 it all on both Bloomberg Radio and Bloomberg Television. Ahead 0:17:52.440 --> 0:17:55.639 of it, SMP. Future is little change down, Futures up 0:17:55.760 --> 0:18:03.080 five points, nastax, futures downten. This is Bloomberg Markets, headlines 0:18:03.160 --> 0:18:06.119 and breaking news twenty four hours a day at Bloomberg 0:18:06.200 --> 0:18:09.520 dot Com, the Bloomberg Business Outland at Bloomberg Quick Take. 0:18:10.119 --> 0:18:18.840 He's a Bloomberg Business Flash and I'm kared Moscow and 0:18:18.960 --> 0:18:21.800 futures are little change this morning as we await the 0:18:21.840 --> 0:18:24.800 Federal Reserve interest rate decision. At a ten year treasury 0:18:24.920 --> 0:18:26.840 is up three thirty seconds. You have three point four 0:18:27.000 --> 0:18:29.120 nine percent. The yield on the two year four point 0:18:29.200 --> 0:18:31.800 one eight percent, and I'm ex scret oil is of 0:18:31.880 --> 0:18:34.119 three quarters of a percent, or fifty seven cents at 0:18:34.160 --> 0:18:37.200 seventy five dollars ninety six cents a barrel. That's a 0:18:37.200 --> 0:18:40.240 Bloomberg Business Flash. Now here's Amy Morris with Moore on 0:18:40.320 --> 0:18:42.800 what's going on around the world. Amy, thank you, Careen. 0:18:42.880 --> 0:18:45.119 Lawmakers have hammered out a deal on a framework to 0:18:45.200 --> 0:18:47.879 fund the government this fiscal year, put in Congress on 0:18:48.040 --> 0:18:51.639 track to avert a shutdown. The House Select Committee investigating 0:18:51.720 --> 0:18:53.720 last year's attack on the U S Capitol will hold 0:18:53.720 --> 0:18:56.119 its final session on Monday. They plan to vote on 0:18:56.160 --> 0:18:59.960 criminal referrals and sports. In the NHL, Alex Ovechkin reaches 0:19:00.000 --> 0:19:03.720 eight hundred career goals, Caps win, Devil's lose, Islanders beat 0:19:03.760 --> 0:19:05.840 the Bruins, and in the NBA the Celtics when the 0:19:05.880 --> 0:19:08.320 Warriors lost. Global News twenty four hours a day on 0:19:08.520 --> 0:19:11.040 Erin on Bloomberg quick Take, powered by more than twenty 0:19:11.520 --> 0:19:14.600 d journalists and analysts and more than one hundred twenty countries. 0:19:14.760 --> 0:19:17.680 I'm Amy Morris, this is Bloomberg. Nathan Okay, Amy, thank 0:19:17.720 --> 0:19:20.080 you for coming up to five twenty three on Wall Street. 0:19:20.080 --> 0:19:23.800 I'm Nathan Hagar. This is Bloomberg Daybreak. The collapse of 0:19:23.920 --> 0:19:26.399 f t X and the arrest of its co founder 0:19:26.480 --> 0:19:29.560 Sam bankman Fried have raised questions about what comes next 0:19:29.720 --> 0:19:33.159 for crypto regulation. The new CEO of f t X, 0:19:33.320 --> 0:19:36.040 John Ray, test to find before the House Financial Services 0:19:36.080 --> 0:19:39.720 Committee yesterday on the company's finances. After that hearing, our 0:19:39.800 --> 0:19:43.080 Washington correspondent Joe Matthew spoke with one of the members 0:19:43.160 --> 0:19:46.080 of the committee, Republican Andy Barr. Let's listen in to 0:19:46.160 --> 0:19:50.800 that conversation. Now, pretty remarkable testimony today from John Ray. 0:19:51.240 --> 0:19:54.639 Did you learn anything new? I think we did. We 0:19:54.720 --> 0:19:56.960 knew this was a huge scandal. We knew that this 0:19:57.200 --> 0:20:01.560 was one of the greatest frauds in America and investment history. 0:20:02.200 --> 0:20:05.480 But what we learned was that this was a total 0:20:05.560 --> 0:20:10.880 and complete failure of all internal controls and governance. As 0:20:11.160 --> 0:20:16.040 uh the new CEO, Mr Ray pointed out, there was 0:20:16.400 --> 0:20:22.080 absolute concentration of control of this business, in these various businesses, 0:20:22.200 --> 0:20:24.680 in the hands of a very small group of in 0:20:24.840 --> 0:20:30.680 his in his words, grossly inexperienced and unsophisticated individuals, who 0:20:30.920 --> 0:20:34.080 who failed to implement virtually any of the systems or 0:20:34.119 --> 0:20:37.480 control is necessary for a company that is entrusted with 0:20:37.600 --> 0:20:41.720 other people's assets. And um, you know, the result is 0:20:41.960 --> 0:20:44.920 a million creditors. And if you think of some of 0:20:45.000 --> 0:20:48.760 the other scandals in American business history and Ron the 0:20:48.800 --> 0:20:53.440 accounting scandal, or the Bernie made Off scandal, you know, 0:20:53.600 --> 0:20:57.359 you you had a number of individuals hurt, but the 0:20:57.560 --> 0:21:03.360 size and scale of the victims of this fraud are 0:21:03.600 --> 0:21:07.000 enormous and really overshadow those those other scandals. Well, you 0:21:07.119 --> 0:21:09.560 brought up this lack of accounting if if I can 0:21:09.760 --> 0:21:13.440 even use that term in your exchange with John Ray today. Left. Listen, 0:21:13.520 --> 0:21:17.360 there's a whole lot of uh, financial statements that are 0:21:17.720 --> 0:21:21.719 either not audited or not available. Is that fair to say? That's? Um? 0:21:21.760 --> 0:21:24.080 In your declaration, you stated that you did not believe 0:21:24.119 --> 0:21:27.440 that those audited financial statements were reliable. Can you elaborate 0:21:27.480 --> 0:21:30.040 on why you believe that to be the case. Well, 0:21:30.119 --> 0:21:33.280 we've lost a billion dollars right of customer money, So 0:21:33.840 --> 0:21:37.000 by definition, I don't trust a single piece of paper 0:21:37.040 --> 0:21:39.680 in this organization. Are you surprised, Congressman, by how little 0:21:39.760 --> 0:21:43.080 John Ray knows after a couple of weeks of of investigating, 0:21:43.119 --> 0:21:45.920 and how little he trusts still at this point, Well, no, 0:21:46.119 --> 0:21:50.040 because this was an unprecedented case of mismanagement and fraud 0:21:50.080 --> 0:21:54.680