WEBVTT - Bloomberg Daybreak: December 6, 2022 - Hour 2 (Radio) 0:00:02.279 --> 0:00:06.200 Live from the Bloomberg Interactive Berger Studios is Bloomberg Daybreak 0:00:06.200 --> 0:00:10.200 for Tuesday, December six two. Coming up this hour. Georgia 0:00:10.280 --> 0:00:13.520 voters decide between Raphael Warnock and Herschel Walker in a 0:00:13.640 --> 0:00:16.799 seventh runoff race. President vied In plans an announcement on 0:00:16.920 --> 0:00:19.560 his future in the Oval Office. The US and Europe 0:00:19.600 --> 0:00:23.040 considered new tariffs on China to fight carbon emissions, and 0:00:23.160 --> 0:00:26.320 Pepsi becomes the latest company to cut jobs. The n 0:00:26.440 --> 0:00:29.520 y p D says crime is down, but hate crimes 0:00:29.600 --> 0:00:33.320 have skyrocketed. Plus Mayor Adams push for New Yorkers to 0:00:33.360 --> 0:00:36.400 get healthier. I'm Michael blarn Moore Ahead, I'm John Stash 0:00:36.600 --> 0:00:38.879 and sports. The Rangers rallied to beat the Blues, the 0:00:38.960 --> 0:00:41.960 Bucks top the Saints, and Justin Verlanders signed with the 0:00:42.000 --> 0:00:48.040 Meth That's all straining Ahead on Bloomberg Daybreak on Bloomberg. 0:00:48.120 --> 0:00:51.000 He Living Free on New York Bloomberg nineteen nine one, 0:00:51.120 --> 0:00:55.080 Washington d C, Bloomberg one oh six one, Boston Bloomberg 0:00:55.160 --> 0:00:58.960 nine sixties and Francisco Sirius x M one nine team 0:00:59.160 --> 0:01:01.920 and around the world Old on Bloomberg Radio dot Com 0:01:02.000 --> 0:01:08.800 and via the Bloomberg Business app. Good morning. I'm Nathan 0:01:08.840 --> 0:01:11.840 Hager and I'm Karen Moscow. In the US DOT Index 0:01:11.880 --> 0:01:15.040 futures have been struggling for direction this morning, six one 0:01:15.080 --> 0:01:17.039 on Wall Street, and we check the markets every fifteen 0:01:17.080 --> 0:01:20.080 minutes throughout the trading day on Bloomberg. Right now, S 0:01:20.120 --> 0:01:22.800 and P futures and down futures are both little changed. 0:01:23.080 --> 0:01:25.440 Nowsday futures are up a tenth of a percent of 0:01:25.480 --> 0:01:28.240 about twelve points. The decks in Germany's down about a 0:01:28.319 --> 0:01:31.479 quarter of a percent. Ten year treasury up three thirty seconds, 0:01:31.520 --> 0:01:33.640 you know, three point five six percent they yield on 0:01:33.680 --> 0:01:36.839 the two year four point three six percent. NIMEX screwed 0:01:36.840 --> 0:01:39.120 oil is down nine tenths per cent, or seventy two 0:01:39.120 --> 0:01:42.360 cents at seventy six dollars twenty one cents a barrel. 0:01:42.520 --> 0:01:44.960 Nathan Karen will have more on the markets in a minute, 0:01:44.959 --> 0:01:47.520 but we begin this morning with a key political runoff 0:01:47.560 --> 0:01:51.120 that could have market implications. Today Georgia voters decide the 0:01:51.200 --> 0:01:54.440 final US Senate seat, and Amy Morris has details from 0:01:54.440 --> 0:01:58.960 our Bloomberg newsroom in Washington. The four week runoff blitz 0:01:59.040 --> 0:02:01.600 has drawn a flood of outside spending, but it all 0:02:01.720 --> 0:02:05.640 ends today. Democratic Senator Raphael Warnock urging his supporters to 0:02:05.680 --> 0:02:10.200 get out the votes. The issues are urgent, and the 0:02:10.240 --> 0:02:13.840 differences between me and my opponent a two one for 0:02:13.919 --> 0:02:18.040 US Republican candidate Herschel Walker, a Heisman Trophy winner from 0:02:18.040 --> 0:02:21.440 the University of Georgia, used football analogies to urge his 0:02:21.520 --> 0:02:25.160 supporters to vote. This is about turnout, and now that 0:02:25.240 --> 0:02:28.280 meaning that we gotta get into game and we can't 0:02:28.280 --> 0:02:31.400 sit on the sideline anymore. Today's race will determine whether 0:02:31.440 --> 0:02:34.400 Democrats have an outright majority in the Senate or control 0:02:34.440 --> 0:02:37.600 of fifty fifty chamber. Donald Trump held a rally yesterday 0:02:37.600 --> 0:02:40.480 for Walker by telephone, not in person, to avoid any 0:02:40.520 --> 0:02:43.960 blame for hurting the GOP's midterm election efforts in Washington. 0:02:44.040 --> 0:02:46.760 I'm Aymy Moore as Bloomberg daybreak, All right, Amy, thank you. 0:02:46.800 --> 0:02:50.360 About one point nine million Georgia voters cost early ballots 0:02:50.360 --> 0:02:52.920 in this race, but Republicans are hoping for a strong 0:02:53.000 --> 0:02:56.920 in person turnout today. GOP Georgia Congressman Buddy Carter says 0:02:56.919 --> 0:02:59.720 it's important for his party to keep the Senate fifty fifty. 0:03:00.280 --> 0:03:03.079 If we have fifty fifty, it means that will have 0:03:03.240 --> 0:03:06.200 fifty fifty in the committee process, and that's extremely important. 0:03:06.280 --> 0:03:09.880 It also means that instead of Chuck Schumer being in 0:03:09.960 --> 0:03:13.560 charge with League, that we've got fifty fifty and at 0:03:13.639 --> 0:03:17.040 least we can count on Joe Mansion sometimes. Georgia Republican 0:03:17.120 --> 0:03:20.360 Congressman Buddy Carter spoke with Our Washington corresponded Joe Matthew 0:03:20.400 --> 0:03:23.160 on Bloomberg sound on Catch the Show weekdays at five 0:03:23.160 --> 0:03:26.280 pm Eastern on Bloomberg Radio. And one other political note 0:03:26.280 --> 0:03:29.160 this morning, Karen President Biden is likely to announce he's 0:03:29.200 --> 0:03:32.560 running for re election after the Christmas and New Year's holidays. 0:03:32.600 --> 0:03:35.040 That's according to White House Chief of Staff Ron Klaine. 0:03:35.440 --> 0:03:38.560 President turned a last month. He's already the oldest person 0:03:38.600 --> 0:03:41.960 ever to occupy the Oval office. Meantime, Nathan Republicans are 0:03:42.000 --> 0:03:46.280 warning the Biden administration not to prioritize green energy goals 0:03:46.360 --> 0:03:50.320 over enforcing federal import restrictions meant to discourage alleged human 0:03:50.400 --> 0:03:54.000 rights abuses in China. The directive and Republican representatives Mike 0:03:54.040 --> 0:03:57.680 Gallagher and Chris Smith, plus Senators Marco Rubio and Tom Cotton, 0:03:58.000 --> 0:04:00.760 signals tough oversight of the issue. After the geop takes 0:04:00.800 --> 0:04:03.440 control of the House in January, and China is also 0:04:03.480 --> 0:04:06.280 in focus Karen. When it comes to US and European relations. 0:04:06.320 --> 0:04:09.160 The US and EU are mulling new tariffs against China 0:04:09.400 --> 0:04:11.920 as part of a bid to fight carbon emissions. Let's 0:04:11.960 --> 0:04:14.160 go to London get the latest with Bloomberg's U and Parts. 0:04:14.160 --> 0:04:16.760 Good morning and good morning, Nathan and Karen. Bloomberg has 0:04:16.839 --> 0:04:19.600 learned that the Chinese steel and aluminum could be hit 0:04:19.640 --> 0:04:22.720 by new Western tariffs. The move would be a novel 0:04:22.760 --> 0:04:26.080 approach using levies normally employed in trade disputes in an 0:04:26.120 --> 0:04:29.440 effort to cut carbon emissions. Sources say the idea, originated 0:04:29.480 --> 0:04:32.119 by the White's House and under discussion with the European Union, 0:04:32.279 --> 0:04:35.120 is still in its early phase and hasn't yet been 0:04:35.160 --> 0:04:38.159 formally put forward. China is both the world's biggest carbon 0:04:38.200 --> 0:04:41.640 emission and the biggest producer of industrial metals. In London, 0:04:41.680 --> 0:04:44.320 immun Parts, spin Bog, daybreak, rank you and thank you well. 0:04:44.360 --> 0:04:47.120 As it has been every day this month, COVID is 0:04:47.160 --> 0:04:49.760 once again in focus in China. COVID outbreak in the 0:04:49.760 --> 0:04:52.440 country that began last month appears to be tailing off. 0:04:52.720 --> 0:04:55.480 Infections have fallen each of the last eight days. At 0:04:55.520 --> 0:04:57.560 the same time, there continues to be a pullback in 0:04:57.640 --> 0:05:00.800 Beijing sweeping testing regime across the kind tree. Right here 0:05:00.839 --> 0:05:03.520 in the US, Karen, futures are a little changed. So 0:05:03.600 --> 0:05:06.400 that's after stocks kicked off this week with losses as 0:05:06.400 --> 0:05:10.200 the U S Services Gauge unexpectedly rose. That good news 0:05:10.480 --> 0:05:13.120 was bad news from markets. It's fueling speculation that the 0:05:13.120 --> 0:05:16.040 FED will keep its policy tights at tame inflation. Rick 0:05:16.120 --> 0:05:19.400 Pitcaren is chief investment officer at Pitcairn Family Office. I 0:05:19.440 --> 0:05:22.640 think the FED has a preference for, you know, controlling 0:05:22.680 --> 0:05:26.200 inflation by whatever means they have to to to get 0:05:26.200 --> 0:05:29.280 that under control. And if that means a recession, uh, 0:05:29.760 --> 0:05:32.080 in their minds, they would hope it would be shallow 0:05:32.240 --> 0:05:34.719 and en shored. Rick pit Karen says he thinks stocks 0:05:34.720 --> 0:05:38.239 are currently training at or near their bottom. Meantime, Nathan 0:05:38.279 --> 0:05:41.320 may continue to see layoffs coming to big companies across 0:05:41.360 --> 0:05:44.039 the country. Now another big name is announcing cuts, and 0:05:44.080 --> 0:05:46.560 we get the latest live at the Bloomberg Steve Rappaport, 0:05:46.640 --> 0:05:49.240 Good morning, Steve, Good morning Karen and Nathan. The job 0:05:49.279 --> 0:05:51.800 cuts in the tech and media sectors have spilled over 0:05:51.880 --> 0:05:55.240 to Big Soda. Pepsi Company is laying off one hundreds 0:05:55.240 --> 0:05:57.839 of workers at the headquarters of its North American snacks 0:05:57.839 --> 0:06:00.800 and beverage units, according to an internal memo viewed by 0:06:00.800 --> 0:06:03.160 The Wall Street Journal. The company says the layoffs are 0:06:03.160 --> 0:06:07.080 intended to simplify the organization and operate more efficiently. Pepsi 0:06:07.120 --> 0:06:10.440 says demand remains strong despite raising prices to offset higher 0:06:10.480 --> 0:06:14.320 costs for ingredients, delivery, and labor. Back in October, Pepsi 0:06:14.320 --> 0:06:17.320 announced cost cutting measures to east pressure on profit margins. 0:06:17.480 --> 0:06:20.880 Live in New York, I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, 0:06:20.880 --> 0:06:23.200 thanks for also watching the crypto space this morning. The 0:06:23.200 --> 0:06:27.120 Federal Trade Commissions investigating several crypto firms over allegations their 0:06:27.160 --> 0:06:31.120 advertisements were deceptive or misleading. The agency enforces laws that 0:06:31.160 --> 0:06:35.080 require truth in advertising, including rules that individuals disclose when 0:06:35.080 --> 0:06:38.080 they've been paid for endorsements or reviews. The FTC is 0:06:38.120 --> 0:06:41.360 not releasing any details. Kind of programming note, Nathan, We're 0:06:41.440 --> 0:06:44.800 live at the Goldman Sachs Financial Services Conference today. Tune 0:06:44.839 --> 0:06:48.240 in for exclusive interviews of Goldman Sachs CEO David Solomon. 0:06:48.480 --> 0:06:50.120 That interview will be coming up at eight a m. 0:06:50.160 --> 0:06:53.479 All Street time right here on both Bloomberg Radio and television. 0:06:53.760 --> 0:06:56.320 Try to head your latest local headlines plus a check 0:06:56.360 --> 0:07:04.040 of sports. And this is Bloomberg A right, Karen, thank you. 0:07:04.080 --> 0:07:07.279 It is six oh seven on Wall Street, about forty 0:07:07.279 --> 0:07:10.120 five degrees midtown. Rain comes to the area this afternoon. 0:07:10.120 --> 0:07:11.840 We'll get up to the mid fifties and the rain 0:07:11.880 --> 0:07:14.760 will continue tonight as we get down to around fifty. 0:07:14.800 --> 0:07:16.920 Now it's bringing Michael Barr with more on what's going 0:07:16.920 --> 0:07:18.560 on in New York and around the world. Good morning, 0:07:18.560 --> 0:07:21.280 you might call Good morning Nathan. The NYPD says there 0:07:21.280 --> 0:07:23.960 has been a monthly decrease in crime, with the seven 0:07:23.960 --> 0:07:29.200 major crimes down one in November. Meanwhile, hate crime surged 0:07:29.320 --> 0:07:33.360 by sevent since last month, within high Semitic hate crime 0:07:33.440 --> 0:07:37.520 soaring by a hundred. Mayor Eric Adams says that's why 0:07:37.560 --> 0:07:41.480 he attended the conference on Anti Semitism in Athens last week. 0:07:41.960 --> 0:07:46.080 That is why I was in Greece, you know, and 0:07:46.560 --> 0:07:48.640 despite people were saying why are you going to Greece 0:07:48.760 --> 0:07:53.280 because there's an anti Semitism problem globally and may is 0:07:53.320 --> 0:07:56.560 from across the globe, we we all met there to 0:07:56.680 --> 0:08:00.920 engage in this conversation. Mayor Adams all also says hate 0:08:01.000 --> 0:08:04.800 crimes are being normalized on social media. It comes as 0:08:04.800 --> 0:08:07.360 a nine year old man in a wheelchair was an 0:08:07.360 --> 0:08:10.320 innocent buying standard when police say he was shot in Brooklyn. 0:08:10.600 --> 0:08:12.840 Police said the man was wounded in the ankle while 0:08:12.880 --> 0:08:17.320 the suspect was robbing another person. The NYPD says the suspect, 0:08:17.440 --> 0:08:20.360 twenty eight year old Sundance Oliver, is also wanted for 0:08:20.440 --> 0:08:24.000 a deadly shooting in Manhattan. Mayor Adams also talked about 0:08:24.080 --> 0:08:28.080 New Yorkers getting healthier. Adam says the new forty four 0:08:28.280 --> 0:08:33.400 million dollar campaign dubbed Lifestyle Medicine involves diet, exercise, hand 0:08:33.480 --> 0:08:37.000 medical care. People often talk about my primary focus being 0:08:37.040 --> 0:08:40.680 public safety, but trust me, health is just as important 0:08:41.040 --> 0:08:43.680 because in order to live in a safe city, you 0:08:43.800 --> 0:08:47.400 must live in a safe city, and that's the goal 0:08:47.520 --> 0:08:50.480 that we are accomplishing. Beor Adams has also pushed for 0:08:50.640 --> 0:08:54.800 plant based food options and schools and at hospitals. The 0:08:54.880 --> 0:08:58.040 suspect accused of shooting up in Colorado Springs gay nightclub 0:08:58.120 --> 0:09:01.160 last month, killing five people and wounding seventeen others, is 0:09:01.160 --> 0:09:04.520 set to appear in court again today, Anderson Lee Aldrich 0:09:04.679 --> 0:09:08.679 will learn what charges prosecutors will pursue, including possible hate crimes. 0:09:09.120 --> 0:09:13.360 Lawyer Michael Avanetti, who represented porn stars Stormy Daniels against 0:09:13.360 --> 0:09:16.800 Donald Trump, was sentenced in California the fourteen years in 0:09:16.880 --> 0:09:20.720 prison for cheating clients out of millions of dollars. Avanetti's 0:09:20.760 --> 0:09:23.280 sentence will be served after he finishes a five year 0:09:23.400 --> 0:09:27.120 term for separate convictions in New York. Kirsty Alley has 0:09:27.160 --> 0:09:29.839 died at age seventy one. According to her family, the 0:09:29.920 --> 0:09:33.000 cheers start dying after a short battle with cancer. Global 0:09:33.040 --> 0:09:35.120 News twenty four hours a day on air and on 0:09:35.160 --> 0:09:38.120 Bloomberg Quick Take, powered by more than twenty seven hundred 0:09:38.160 --> 0:09:40.480 journalists and analysts more than a hundred twenty countries. I'm 0:09:40.520 --> 0:09:48.079 Michael Barrow. This is Bloomberg, Nathan. Thank you, Michael. It's 0:09:48.080 --> 0:09:49.840 a six ten on Wall Street. Time for the Bloomberg 0:09:49.840 --> 0:09:51.560 Sports that date brought to you by twice State Out 0:09:51.559 --> 0:09:53.920 of here's John stash Allen, Thanks Davan. Matt Scher's or 0:09:53.960 --> 0:09:56.240 thirty eight years old but no longer the oldest picture 0:09:56.280 --> 0:09:58.720 on the Matthews also no longer the only picture making 0:09:58.840 --> 0:10:02.839 forty three million dollars a year. Justin Verlander, who soon 0:10:03.000 --> 0:10:05.640 turns forty and who was Suzer's teammate for six years 0:10:05.679 --> 0:10:08.600 in Detroit, coming to New York taking Jacob de Graham's 0:10:08.640 --> 0:10:11.360 spot of the Mets rotation, two year deal eighties six 0:10:11.400 --> 0:10:14.080 million Erlander just won the Cy Young Award with Houston. 0:10:14.120 --> 0:10:17.040 Another shocking contract is what Tray Turner got from the 0:10:17.040 --> 0:10:19.719 Phillies and eleven year deal for three hundred million. As 0:10:19.720 --> 0:10:22.560 for Aaron Judge, Yankee gentle manager Brian Cashman, who just 0:10:22.600 --> 0:10:25.800 got a new contract himself, says they will not rush 0:10:25.920 --> 0:10:28.680 Judge into making a decision. Judge was at the Monday 0:10:28.760 --> 0:10:31.280 night game at Tampa Bay. Quite a finish. The Bucks 0:10:31.320 --> 0:10:34.520 trailed the Saints. Final secretors, the staff, Brady dropping looking, 0:10:34.600 --> 0:10:40.720 Brady throws football, Let's talksh White, Shan White touch stop 0:10:43.840 --> 0:10:46.840 six radio. The extra point gave them the victory. Tampa 0:10:46.840 --> 0:10:49.160 Bay trailed by thirteen with three minutes to go there 0:10:49.200 --> 0:10:52.720 six and six good for first place. Carolina Panthers released 0:10:52.720 --> 0:10:55.920 Baker Mayfield, who was their Week one starting quarterback. Forty 0:10:56.000 --> 0:10:59.560 Niners coach Kyle Shanahan says he doubts they'll sign Mayfield. 0:10:59.559 --> 0:11:02.280 The Niners just lost Jimmy Garoppolo for the season. At 0:11:02.280 --> 0:11:05.000 the Garden, Rangers rallied past the Blues. They won six four, 0:11:05.080 --> 0:11:08.360 with three goals in the third period. Six different Ranger 0:11:08.400 --> 0:11:11.120 of goals scores. Four quarterbacks are coming to New York 0:11:11.120 --> 0:11:15.720 for Saturday's Heisman Trophy announcement. USC's Caleb Williams, tc US, 0:11:15.800 --> 0:11:20.280 Max Duggan, George's Stetson Bennett, and Ohio States See Jay's trap. 0:11:20.360 --> 0:11:23.640 John actually were Bloomberg Sports. Nathan all right, John, thank you. 0:11:23.720 --> 0:11:26.320 Bloomberg Sports is brought to you by Audie. Don't let 0:11:26.320 --> 0:11:28.640 someone else drive off in the outie model. You've always 0:11:28.640 --> 0:11:31.040 wanted to visit your local price state autie dealer to 0:11:31.120 --> 0:11:33.760 get behind the wheel of yours today, or visit outie 0:11:33.760 --> 0:11:36.640 Offers dot com for more information. Up next to look 0:11:36.679 --> 0:11:39.480 ahead to the Georgia's Senate runoff and what's to come 0:11:39.520 --> 0:11:43.880 in the lame duck session on Capitol Hill. First, SMP 0:11:44.040 --> 0:11:47.760 futures are little changed, down two points right now. Dow 0:11:47.880 --> 0:11:51.400 Future is down twenty five, NASDAC futures still clinging to 0:11:51.559 --> 0:11:55.240 a very slight gain of four points. Tenure Treasury is 0:11:55.280 --> 0:11:57.800 up to thirty seconds yield on the benchmark ten year 0:11:57.880 --> 0:12:02.960 note three point five six percent, six twelve on Wall Street. 0:12:02.960 --> 0:12:07.720 This is Bloomberg Daybreak on Election Day, Part two. In Georgia, 0:12:07.800 --> 0:12:12.800 the runoff between Democrat Raphael Warnock and Republican Herschel Walker 0:12:12.880 --> 0:12:16.640 will be decided tonight. Let's bring in Greg Valier, or 0:12:16.720 --> 0:12:19.720 chief US policy strategists at a GF Investments, for a 0:12:19.720 --> 0:12:23.839 look at the implications of this final race of the 0:12:24.640 --> 0:12:27.600 two mid terms. Greg, good morning. We already know how 0:12:27.679 --> 0:12:32.040 the balance of power on Capitol Hill. Democrats nominally have 0:12:32.160 --> 0:12:35.160 control of the Senate. The House is back in Republican hands. 0:12:35.160 --> 0:12:40.040 So why should we be watching this runoff in Georgia today? Well, 0:12:40.080 --> 0:12:42.600 good morning, Nathan. It's it's important for two or three 0:12:42.600 --> 0:12:46.200 reasons quickly. Number one, uh, it negates a lot of 0:12:46.240 --> 0:12:49.400 the power that Joe Mansion had to disrupt things he 0:12:49.520 --> 0:12:52.960 and Christian Cinema. If it does wind up fifty one 0:12:53.080 --> 0:12:55.439 forty nine, which I think is likely, makes it a 0:12:55.480 --> 0:12:59.679 little tougher for Mansion. Secondly, it helps committee organizing. It's 0:12:59.720 --> 0:13:03.200 pretty r kane, but things can move through committees. Third, 0:13:03.240 --> 0:13:05.599 I think it gives the Democrats a leg up for 0:13:06.559 --> 0:13:11.040 four and gives them the opportunity to further mock Donald 0:13:11.040 --> 0:13:15.439 Trump has somebody who endorsed candidates who almost uniformly lost. 0:13:16.840 --> 0:13:19.000 What are you expecting in terms of turnout today? We've 0:13:19.000 --> 0:13:22.959 already had close to two million early votes cast in 0:13:22.960 --> 0:13:27.520 this race. Are expecting long lines down in Georgia? Well, 0:13:27.559 --> 0:13:29.280 as you know, there have been long lives for the 0:13:29.360 --> 0:13:31.600 last few days, and I think there will be today 0:13:31.640 --> 0:13:35.600 as well. An extraordinary turnout. I think that helps warnock. 0:13:35.960 --> 0:13:38.240 I think the momentum has all been with him in 0:13:38.280 --> 0:13:42.600 the last seven to ten days. What are the implications 0:13:42.640 --> 0:13:46.439 for former President Trump? Of course, we know that many 0:13:46.600 --> 0:13:50.080 of the candidates that he endorsed in this mid term 0:13:50.440 --> 0:13:53.920 did not do too well. Herschel Walker has managed to 0:13:54.200 --> 0:13:57.319 get to this point to force a runoff. What does 0:13:57.360 --> 0:13:59.839 this mean for the former president's hold on the g 0:14:00.040 --> 0:14:03.880 o P? Nothing good. If you look at the races 0:14:03.920 --> 0:14:07.800 around the country where Trump's candidates almost all lost, you 0:14:07.840 --> 0:14:10.680 look at this disastrous comment he made a few days 0:14:10.679 --> 0:14:14.520 ago about cheering up the Constitution. To go back and 0:14:14.559 --> 0:14:17.959 look at why he really did win in I mean, 0:14:17.960 --> 0:14:21.800 even Republicans just shook their heads in the last couple 0:14:21.840 --> 0:14:26.520 of days. I think that Trump's campaign for presidents so 0:14:26.600 --> 0:14:31.400 far has been an absolute disaster. And on the Democratic side, 0:14:31.480 --> 0:14:34.840 we saw President Biden sort of keep his distance in 0:14:34.920 --> 0:14:38.240 this race. He supported Raphael Warnock from Afar, and we 0:14:38.360 --> 0:14:40.880 got a lot of in person support from the likes 0:14:40.880 --> 0:14:44.640 of former President Barack Obama, not just in this runoff, 0:14:44.680 --> 0:14:49.360 but on even before official election day. What kind of 0:14:49.400 --> 0:14:53.280 momentum could this race potentially give to President Biden as 0:14:53.320 --> 0:14:58.280 he considers making his own announcement for re election. Yeah, Biden, 0:14:58.320 --> 0:15:00.560 you have to say, has had a very good stretch 0:15:00.640 --> 0:15:03.360 the last six to eight months. He's got a lot done. 0:15:03.680 --> 0:15:06.200 There's even a chance in this lane duck session of 0:15:06.280 --> 0:15:11.360 Congress before Christmas forgetting immigration reform, which would be an 0:15:11.400 --> 0:15:14.880 extraordinary development. So I would say that Biden is on 0:15:14.920 --> 0:15:18.160 a roll, and to have the Georgia race turn the 0:15:18.200 --> 0:15:21.320 Democrats way would help him as well. I don't think 0:15:21.320 --> 0:15:24.480 he's going to announce until after the first of the year, 0:15:24.560 --> 0:15:27.040 and I am not certain that he will announce. He's 0:15:27.120 --> 0:15:29.880 running for a second term for the simple reason that 0:15:29.960 --> 0:15:32.600 if he won the second term, he would be leaving 0:15:32.640 --> 0:15:35.840 the White House theoretically at the age of eighties six. 0:15:36.880 --> 0:15:39.480 And we are expecting some kind of announcement. We heard 0:15:39.520 --> 0:15:41.800 from a White House Chief of staff. Ron claimed that 0:15:42.080 --> 0:15:45.280 we'd get word from the President after the New Year's holiday, 0:15:45.280 --> 0:15:47.360 so we're definitely going to be watching that as well. 0:15:47.840 --> 0:15:50.640 As far as this lane Duck session goes, Greg, there 0:15:50.760 --> 0:15:54.200 is a lot to get done before either Warnock or 0:15:54.480 --> 0:15:59.560 a Walker, no matter who comes out victorious, is finally 0:15:59.720 --> 0:16:02.040 see did I mean we've got the defense, build a pass, 0:16:02.120 --> 0:16:06.200 must pass government spending. What do you have looking ahead 0:16:06.240 --> 0:16:10.440 to the lame duck session to be watching for. Well, 0:16:10.480 --> 0:16:12.760 it's always a mess. It's always a train wreck, and 0:16:12.840 --> 0:16:16.240 this year will be no exception. I think that you know, 0:16:16.280 --> 0:16:18.840 the deadline of December sixt for a budget will be 0:16:18.880 --> 0:16:21.680 missed and they'll have to have another deadline right up 0:16:21.760 --> 0:16:25.080 until Christmas Eve. I don't see a government shutdown. The 0:16:25.360 --> 0:16:28.800 odds favor getting a budget bill done right at the 0:16:28.880 --> 0:16:32.160 end of the year. It's possible little drag onto next year. 0:16:32.360 --> 0:16:34.840 But you're right, there's a lot of big issues, Nathan. 0:16:34.960 --> 0:16:39.240 At the main ones our defense, the entire spending package, 0:16:39.440 --> 0:16:42.520 and all of a sudden now immigration out of nowhere 0:16:42.760 --> 0:16:45.920 is back on the table. In the last thirty seconds 0:16:45.920 --> 0:16:50.640 here Greg focusing finally on the Georgia runoff. Given all 0:16:50.640 --> 0:16:53.480 the early votes that would have been cast and the 0:16:53.480 --> 0:16:58.000 potential for some turnout later today, what are the chances 0:16:58.080 --> 0:17:02.280 we actually know who the winner is after tonight. Well 0:17:02.280 --> 0:17:04.919 that's a good point, Nathan. I I cringe at the 0:17:04.920 --> 0:17:07.520 thought that this could happen, But I don't rule out 0:17:07.840 --> 0:17:10.560 the possibility that we won't know tonight, that it might 0:17:10.600 --> 0:17:13.359 take a day or two to recount all the votes 0:17:13.400 --> 0:17:16.680 and you'll have, you know, charges of voter fraud, things 0:17:16.760 --> 0:17:19.400 like that. I think the safest bet is it will 0:17:19.400 --> 0:17:22.840 probably about twenty four hours from now, will probably know 0:17:22.920 --> 0:17:26.280 who won, but we might not know until well after midnight. No, 0:17:26.680 --> 0:17:29.879 but the call is at least maybe this week. Thanks 0:17:29.880 --> 0:17:32.879 for this break as always great to get your thoughts 0:17:32.920 --> 0:17:36.680 on this election day in Georgia. Gregg Valiere, chief US 0:17:36.720 --> 0:17:40.040 policy Strategists at a GF Investments, and stay with us 0:17:40.080 --> 0:17:42.520 on Bloomberg Daybreak. Coming up, we're gonna get a live 0:17:42.560 --> 0:17:47.199 report from Atlanta. Bloomberg's Joe Matthew, leading our team of 0:17:47.240 --> 0:17:52.280 correspondence covering today's runoff for the US Senate in Georgia, 0:17:52.320 --> 0:17:55.080 will be hosting a special edition of sound on this 0:17:55.200 --> 0:18:03.240 afternoon from Atlanta. This is Bloomberg Daybreak, Markets, headlines and 0:18:03.359 --> 0:18:06.680 breaking news twenty four hours a day at Bloomberg dot Com, 0:18:06.760 --> 0:18:10.320 the Bloomberg Business Outland at Bloomberg Quick Take. This is 0:18:10.320 --> 0:18:19.320 a Bloomberg Business Flash and I'm Karen Moscow. This updates 0:18:19.359 --> 0:18:21.600 brought to you by the Jewish Communal Fund j CF 0:18:21.760 --> 0:18:24.399 donor Advised Fund is a smart, tax efficient way to 0:18:24.440 --> 0:18:27.080 manage your philanthropy. Hopen to j c F fund now 0:18:27.119 --> 0:18:30.200 to lock it at two tax deduction, visit j c 0:18:30.400 --> 0:18:33.520 F n Y dot org. And futures continue to struggle 0:18:33.600 --> 0:18:37.239 for direction this morning, SNP, NAZDAC and down. Futures are 0:18:37.240 --> 0:18:39.640 all little change. The decks in Germany is down three 0:18:39.680 --> 0:18:42.000 tenths of a per cent. Can your treasury up one 0:18:42.000 --> 0:18:44.600 thirty second deal three point five six percent? And they 0:18:44.680 --> 0:18:47.400 yelled him a two year four point three six percent. 0:18:47.680 --> 0:18:50.080 And that's a Bloomberg Business Flash. Now here's Michael bar 0:18:50.240 --> 0:18:53.119 with Moore on what's going on around the world. Michael, Karen, 0:18:53.160 --> 0:18:55.960 thank you very much. Eyes are on Georgia today for 0:18:56.040 --> 0:18:59.680 its Senate runoff election. Georgia voters would choose whether to 0:19:00.119 --> 0:19:04.760 elect Democratic senator Raphael Warnock or his Republican challenger football 0:19:04.840 --> 0:19:08.760 legend Herschel Walker. Kirsty Ali, best known for TVs. Cheers, 0:19:08.800 --> 0:19:11.800 has died at age seventy one. In the NBA, the 0:19:11.840 --> 0:19:15.160 Celtics one, the Warriors lost. In the NHL, the Rangers won. 0:19:15.240 --> 0:19:17.520 The Bruins lost in a shootout to the Golden Night, 0:19:17.800 --> 0:19:20.359 the Capitol's one Monday Night football. The Bucks pulled on 0:19:20.480 --> 0:19:23.639 the last second win over the st seventeen sixteen World 0:19:23.640 --> 0:19:26.600 Cup action. It's the final day of the Round of sixteen. 0:19:26.680 --> 0:19:31.520 Morocco play Spain, Portugal play Switzerland. Global News twenty four 0:19:31.520 --> 0:19:34.359 hours a day on air and on Bloomberg Quicktake, powered 0:19:34.359 --> 0:19:36.960 by more than twenty journalists and analysts more than a 0:19:37.000 --> 0:19:40.040 hundred twenty countries. I'm Michael bar This is Bloomberg. Nathan 0:19:40.160 --> 0:19:42.199 all right, Michael, thank you. At six twenty three on 0:19:42.240 --> 0:19:45.399 Wall Street, I'm Nathan Hagar and this is Bloomberg Daybreak, 0:19:45.440 --> 0:19:48.240 brought to you by See. I'm asset. Managers don't get 0:19:48.280 --> 0:19:51.000 results that are off the charts when their solutions are 0:19:51.080 --> 0:19:53.520 off the shelf. Learn how s e i is operating 0:19:53.560 --> 0:19:57.800 platform can turn infrastructure into a competitive advantage. At se 0:19:57.840 --> 0:20:01.239 I C dot Com slash back, and now we want 0:20:01.280 --> 0:20:04.359 to bring you a conversation with economists and Yale Senior 0:20:04.400 --> 0:20:07.800 fellow Stephen Roach. He spoke with Tom Keene and Jonathan 0:20:07.800 --> 0:20:11.400 Ferry yesterday on Bloomberg Surveillance. They talked about the outlook 0:20:11.400 --> 0:20:15.159 for inflation and tensions between the US and China. Do 0:20:15.320 --> 0:20:17.840 we hearken back to the fears of the sixties and 0:20:17.880 --> 0:20:22.240 the seventies and a wage price spiral, Well, the wage 0:20:22.280 --> 0:20:26.480 price spiral back then, Tom was heavily impacted by cost 0:20:26.560 --> 0:20:33.720 of living UH indexation clauses in I labor union contracts, 0:20:33.880 --> 0:20:37.119 And two things have happened. Uh, labor unions are a 0:20:37.200 --> 0:20:41.080 much smaller share of the workforce, and these coal adjustment 0:20:41.960 --> 0:20:46.400 clauses are less prevalent than they were back then. And nevertheless, 0:20:46.440 --> 0:20:51.640 you know, wages are labors and a very important segment 0:20:51.680 --> 0:20:56.600 of overall business costs, and tight labor markets are certainly 0:20:56.640 --> 0:21:02.359 boosting the compensation piece of that, and weak productivity is 0:21:02.400 --> 0:21:05.840 reinforcing it. So it's it's important to stay focused on 0:21:05.880 --> 0:21:09.840 this issue. Steven Roch to China, Sir Howard Davies, mentions 0:21:09.880 --> 0:21:12.920 of your book that it is is is a way 0:21:12.960 --> 0:21:17.560 to a new framework a new discussion of both parties. 0:21:17.600 --> 0:21:21.960 We need goodwill among the United States and China. How 0:21:22.000 --> 0:21:25.320 do we find that goodwill? Number One, we have to 0:21:25.320 --> 0:21:29.520 recognize that the current approach that we've both been wedded 0:21:29.560 --> 0:21:33.280 to over the past twenty years is an abysmal failure. 0:21:33.280 --> 0:21:37.000 In the last five years, we've had the beginnings of 0:21:37.240 --> 0:21:39.880 a trade war, tech war, and now the early stages 0:21:40.520 --> 0:21:43.919 of a new Cold war, so an accidental conflict. I 0:21:44.040 --> 0:21:49.720 propose a a new approach based on three key pillars. 0:21:50.920 --> 0:21:55.160 One rebuilding trust by going after the low hanging fruits 0:21:55.160 --> 0:22:01.200 of reopening consulates and restarting exchange programs to king pressure 0:22:01.240 --> 0:22:10.520 off of NGO's. Secondly, abandoning the zero sum bilateral trade framework, 0:22:10.600 --> 0:22:13.160 which makes no sense and has not worked at all, 0:22:13.840 --> 0:22:19.359 embracing a market opening pro growth initiative framed around a 0:22:19.400 --> 0:22:24.720 bilateral investment treaty, And thirdly, making an effort to establish 0:22:24.800 --> 0:22:29.280 a new architecture for engagement. These summits like the one 0:22:29.320 --> 0:22:33.640 that Hi Jimping and Joe Biden had November four, uh, 0:22:33.680 --> 0:22:36.680 they're long on the photo ops, but they accomplished nothing. 0:22:37.080 --> 0:22:40.679 I'm in favor of a new full time organization that 0:22:40.720 --> 0:22:44.040 I call a u S China Secretariat, which is detailed 0:22:44.040 --> 0:22:47.320 in the book. But after the Party Congress and what 0:22:47.440 --> 0:22:51.640 we see from the leadership in Beijing, a leadership perhaps 0:22:51.680 --> 0:22:54.480 forever is the idea, as you mentioned in one of 0:22:54.520 --> 0:22:59.040 your chapters of China with American characteristics. There seems to 0:22:59.080 --> 0:23:03.840 be zero desire for that out of Beijing. Well, China 0:23:03.880 --> 0:23:05.879 wants to do it its way, and that's been an 0:23:05.880 --> 0:23:09.480 affront to us. We had this rather naive presumption that 0:23:09.600 --> 0:23:12.680