WEBVTT - Bloomberg Daybreak: November 29, 2022 - Hour 2 (Radio) 0:00:02.080 --> 0:00:05.359 Live from the Bloomberg Interactive Burger Studios is a Bloomberg 0:00:05.440 --> 0:00:08.799 day Break for a Tuesday, November twenty nine. Coming up 0:00:08.840 --> 0:00:12.600 this hour. Markets react as the turmoil in China eases, 0:00:12.920 --> 0:00:15.640 Fed officials stress more rate hikes around the way. The 0:00:15.640 --> 0:00:19.000 Biden administration asked Congress to force a rail deal despite 0:00:19.079 --> 0:00:22.200 union objections, and Elon Musk has a public spad with 0:00:22.360 --> 0:00:27.000 Twitter's top advertiser Apple. The NYPD buses a multi million 0:00:27.040 --> 0:00:30.600 dollar operation of counterfeit goods. Plus the Senate bill protecting 0:00:30.720 --> 0:00:33.800 same sex marriage is set to pass today. On Michael 0:00:33.800 --> 0:00:37.400 ware More, John Stashwar Sports, the Red Hot Devils beat 0:00:37.440 --> 0:00:39.839 the Rangers, Nets beat the Magic in its winner go 0:00:40.000 --> 0:00:44.720 home for the US today at the World Cup. That's 0:00:44.720 --> 0:00:48.680 all trading ahead on Bloomberg day Break on Bloomberg elevent Tree, 0:00:48.680 --> 0:00:52.960 on New York, Bloomberg N one, Washington, d C, Bloomberg 0:00:52.960 --> 0:00:56.680 one oh six one, Boston, Bloomberg nine sixties and Francisco 0:00:57.160 --> 0:01:00.880 Sirius XM one nineteen and around the world on Bloomberg 0:01:00.960 --> 0:01:08.200 Radio Dot Carmen via The Bloomberg Business. Good Morning, I'm 0:01:08.280 --> 0:01:11.399 Nathan Hagar and I'm Karen Moscow. When US dock index 0:01:11.480 --> 0:01:13.800 futures are on the rise this morning. We're coming up 0:01:13.800 --> 0:01:15.360 to six and one on Wall Street, and we checked 0:01:15.360 --> 0:01:17.840 the markets every fifteen minutes throughout the trading day. On 0:01:17.880 --> 0:01:21.399 bloomberg S and P futures up ten boys Dow futures 0:01:21.440 --> 0:01:24.560 that will change nowsday futures of fifty five. The decks 0:01:24.560 --> 0:01:26.600 in Germany is little changed as well. The ten year 0:01:26.640 --> 0:01:29.640 treasury up eight thirty seconds you three point six four percent, 0:01:30.000 --> 0:01:32.120 and the yield on the two year four point four 0:01:32.200 --> 0:01:34.759 two per cent, Nathan Karen, We'll get back to markets 0:01:34.760 --> 0:01:36.320 in a minute, but first you want to update you 0:01:36.400 --> 0:01:39.200 on the unrest in China. Health officials have held their 0:01:39.240 --> 0:01:43.240 first briefing since protests over COVID restrictions began last week. 0:01:43.440 --> 0:01:46.520 Bloomberg's Rebecca Chung Wilkins has the latest from Hong Kong. 0:01:46.800 --> 0:01:51.840 We saw quite muted, if any activity overnight. UM we 0:01:51.920 --> 0:01:54.240 saw a very heavy police present in a lot of 0:01:54.320 --> 0:01:58.520 major Chinese cities like Beijing and Shanghai, um and in 0:01:58.720 --> 0:02:03.160 pot that disneyd to quite a reduced effort. Um the briefing, 0:02:03.280 --> 0:02:06.880 quite frankly say've are has steered away from really covertly 0:02:07.080 --> 0:02:09.799 talking about the protest but there did seem to be 0:02:10.000 --> 0:02:14.400 a somewhat sort of softening in tone from authorities, acknowledging 0:02:14.440 --> 0:02:17.959 that some of the implementation of COVID controls has been 0:02:18.160 --> 0:02:22.040 relatively strict. MERGERA Chen Wilkins reports China plans to speed 0:02:22.120 --> 0:02:24.920 up vaccinations for the elderly, but it's stopping short of 0:02:25.000 --> 0:02:28.800 enacting mandates well. Nathan Starks in Asia surge as unrest 0:02:28.880 --> 0:02:32.000 over COVID curbs ease. Hong Kong's Hang Sang Index rally 0:02:32.040 --> 0:02:34.520 more than five percent, while Starks in China game three 0:02:34.520 --> 0:02:37.320 percent to get the recount from Bloomberg's JULIETT. Sally in 0:02:37.400 --> 0:02:40.560 Singapore Good Morning, Juliet, Good Morning Nathan and Karen Shares 0:02:40.639 --> 0:02:42.800 rallied in Hong Kong and on the mainland, as some 0:02:42.880 --> 0:02:46.000 investors speculated that the protests may hasten has shift away 0:02:46.040 --> 0:02:49.040 from COVID zero policies. Traders also took hard from the 0:02:49.080 --> 0:02:52.359 lifting of China's multi year ban on share sales by builders. 0:02:52.680 --> 0:02:55.200 China's tend Your Government bondy or advanced to its highest 0:02:55.240 --> 0:02:57.440 level in a year, as support measures announced for the 0:02:57.440 --> 0:03:01.240 property sector dented hopes of further monetary policy easing, and 0:03:01.280 --> 0:03:03.959 the Japanese end rose, as did an index of emerging 0:03:04.000 --> 0:03:08.679 market currencies in Singapore. Juliette Sally Bloomberg Daybreak. Thanks Juliette. 0:03:08.720 --> 0:03:11.280 Let's take a look at US China relations now or 0:03:11.320 --> 0:03:14.600 the response to Beijing's crackdown on protests so far has 0:03:14.639 --> 0:03:17.840 been muted. Bloomberg's Ed Baxter has the story. The US 0:03:17.919 --> 0:03:20.720 has spoken very strongly in the past about human rights, 0:03:21.040 --> 0:03:24.400 and now National Security Council spokesman John Kirby says, a 0:03:24.480 --> 0:03:27.560 watchful eye here. We're watching this closely as you might 0:03:27.560 --> 0:03:31.040 expect we would, and again we continue to stand up 0:03:31.080 --> 0:03:33.680 and support the right of peaceful protests. Um and I 0:03:33.720 --> 0:03:35.600 think we're going to watch this closely and we'll see 0:03:35.600 --> 0:03:38.680 where things go. Kirby says, the Biden administration does not 0:03:38.880 --> 0:03:42.560 expect the protest to affect the supply chain or global economy. 0:03:42.880 --> 0:03:45.880 In San Francisco, I'm at Baxter Bloomberg Daybreak, all right, 0:03:45.960 --> 0:03:49.280 and thanks Meantime, President Biden and House figure Nancy Pelosi 0:03:49.320 --> 0:03:51.480 are moving to prevent a shutdown to the US freight 0:03:51.560 --> 0:03:55.720 railroad system. Sammy Morris has details from our Bloomberg newsroom 0:03:55.760 --> 0:03:59.280 made Washington. President Biden asked Congress to intervene to block 0:03:59.320 --> 0:04:01.760 a strike. VOWS is preparing to take up a bill 0:04:01.840 --> 0:04:05.600 to impose a labor settlement despite some union's objections. Belosi 0:04:05.680 --> 0:04:08.680 says they're making the move reluctantly, but they have to 0:04:08.760 --> 0:04:12.600 avoid what she calls a catastrophic nationwide strike, which could 0:04:12.680 --> 0:04:16.000 hurt the economy by crippling supply chains. A coalition of 0:04:16.040 --> 0:04:18.480 more than four hundred business groups sent a letter to 0:04:18.520 --> 0:04:21.960 congressional leaders urging them to step in. The strike deadline 0:04:22.040 --> 0:04:25.160 is December nine in Washington. I maybe more as Bloomberg 0:04:25.200 --> 0:04:28.120 Daybreak thanks Amy. Another major impact on the economy in 0:04:28.160 --> 0:04:30.720 recent months has been higher interest rates, and now FED 0:04:30.760 --> 0:04:33.839 officials are stressed in the Central Bank is not done hiking. 0:04:33.880 --> 0:04:37.200 Here's New York Fed President John Williams further tightening ente 0:04:37.240 --> 0:04:40.160 policy should help her still balance between demand and supply 0:04:40.400 --> 0:04:42.719 and bring inflation back to two percent over the next 0:04:42.720 --> 0:04:45.560 few years. It will take some time about fully confident 0:04:45.600 --> 0:04:48.040 that will return to a sustaining period of Prince will 0:04:48.360 --> 0:04:50.640 New York FED President John Williams spoke at a virtual 0:04:50.680 --> 0:04:53.240 event hosted by the Economic Club of New York. At 0:04:53.279 --> 0:04:56.000 the same time St. Louis Fed President James Bullard says 0:04:56.000 --> 0:04:59.479 financial markets are underestimating the chance of more aggressive policy 0:04:59.520 --> 0:05:03.120 next year. They're counting the first two fifty basis points 0:05:03.120 --> 0:05:05.760 as if that was a tightening of monetary policy, but 0:05:05.880 --> 0:05:08.640 really that's just getting up to the long run neutral 0:05:08.760 --> 0:05:11.960 level of the policy rate. We've only recently moved into 0:05:11.960 --> 0:05:14.800 restrictive territory, and we're going to have to move farther 0:05:14.960 --> 0:05:17.599 in order to keep inflation under control. St. Louis FED 0:05:17.640 --> 0:05:20.239 President Jim Bullard and other officials have signaled they planned 0:05:20.240 --> 0:05:23.559 to raise rates by fifty basis points next month. Well, Nathan, 0:05:23.560 --> 0:05:26.640 they're more scientists morning. The aggressive FED tightening could lead 0:05:26.640 --> 0:05:29.400 to a recession. The gauge of global bonds measuring the 0:05:29.440 --> 0:05:32.080 worldwide yield curve, has inverted for the first time in 0:05:32.120 --> 0:05:34.720 at least two decades. The inversion of the yield curve 0:05:34.760 --> 0:05:37.800 is typically seen as a prediction for a recession as 0:05:37.839 --> 0:05:41.200 investors switch money to longer term bonds due to pessimism 0:05:41.240 --> 0:05:44.440 over the short term outlook. Well, let's turn to crypto now, Karen. 0:05:44.480 --> 0:05:47.680 The fallout from f t X continues. Block five is 0:05:47.720 --> 0:05:50.760 the latest crypto firm to collapse. The digital asset lender 0:05:50.800 --> 0:05:53.280 says it will use Chapter eleven to recover everything it's 0:05:53.279 --> 0:05:56.640 owned by counterparties, including f t X, but Block five 0:05:56.680 --> 0:05:59.880 acknowledges recoveries are likely to be delayed by the bankrupt 0:06:00.160 --> 0:06:02.880 of f t X, and Elon Musk is on the 0:06:02.920 --> 0:06:07.279 spotlight again This morning. Nathan, a billionaire, is publicly attacking Apple, 0:06:07.440 --> 0:06:11.200 which is one of Twitter's top advertisers. Must said Apple 0:06:11.240 --> 0:06:14.000 has cut its Twitter advertising and threatened to block this 0:06:14.120 --> 0:06:17.560 social network from its app store. Kurt Wagner has more 0:06:17.600 --> 0:06:21.120 from our Bloomberg nine sixty newsroom in San Francisco. The 0:06:21.160 --> 0:06:24.640 app store is is probably the main way or one 0:06:24.720 --> 0:06:27.159 of the main ways that most of its users get 0:06:27.160 --> 0:06:29.920 the app get app updates. So you know, for example, 0:06:29.920 --> 0:06:31.719 I believe the app would still work on my phone, 0:06:31.720 --> 0:06:34.040 but in order to you know, get an updated version 0:06:34.400 --> 0:06:36.280 I have an iPhone, I might have to you know, 0:06:36.320 --> 0:06:37.880 figure out a way to download that from the web. 0:06:37.920 --> 0:06:39.840 It's the kind of thing that's going to erode over 0:06:39.880 --> 0:06:42.200 time and causes a lot of people to either stop 0:06:42.279 --> 0:06:45.080 using Twitter or or you know, possibly have to move 0:06:45.080 --> 0:06:47.839 to a different device. And so that's a huge issue. 0:06:47.839 --> 0:06:49.599 And one of the reasons I tweeted that I think 0:06:49.680 --> 0:06:53.040 Twitter needs Apple a lot more than Apple needs Twitter here, 0:06:53.080 --> 0:06:55.720 and that's because Apple has the distribution that it's at 0:06:55.720 --> 0:06:59.840 its fingertips. Bloomberg Technology reporter Kurt Wagner says Elon Musk 0:06:59.880 --> 0:07:03.120 is firing back at Apple, asking whether it hates free speech. 0:07:03.560 --> 0:07:05.640 Futures are higher, but giving back some of their gains. 0:07:05.680 --> 0:07:08.239 Careeness and P futures are up seven point Stout futures 0:07:08.240 --> 0:07:11.840 now little change that NASTAC futures are higher by forty 0:07:12.040 --> 0:07:16.080 five points. Straight ahead your latest local headlines plus a 0:07:16.160 --> 0:07:23.720 check of sports. You're listening to Bloomberg Daybreak six oh 0:07:23.720 --> 0:07:26.160 seven on Wall Street, thirty seven degrees in Central Park. 0:07:26.320 --> 0:07:29.640 Still got that closure westbound cross Bronx Jerome Avenue to 0:07:29.680 --> 0:07:32.000 the Deacon Michael Bars here with what else is going 0:07:32.040 --> 0:07:34.000 on in New York and around the world. Michael, thank 0:07:34.040 --> 0:07:36.280 you very much. Nathan, the nyp D made a big 0:07:36.280 --> 0:07:40.400 bus stopping at Counterfeit Goods Operation Police seized over ten 0:07:40.440 --> 0:07:43.960 million dollars in knockoff merchandise from vendors on Canal Street. 0:07:44.400 --> 0:07:47.640 During a news conference, officials set authorities had gotten several 0:07:47.680 --> 0:07:50.960 complaints in Lower Manhattan about the fake purses, sneakers, and 0:07:51.000 --> 0:07:53.760 other items being sold on the streets. M I p D. 0:07:53.920 --> 0:07:57.800 Chief of Patrol Jeffrey Madrey, spoke to ABC seven sidewalks 0:07:57.800 --> 0:08:02.000 were blocked. There was property everywhere, merchandise everywhere, and this 0:08:02.160 --> 0:08:05.880 really impacts local businesses in a negative manner. Chief Madre 0:08:06.080 --> 0:08:09.760 says seventeen people were arrested and three truckloads of counterfeit 0:08:09.840 --> 0:08:13.800 items received. Five new Haven, Connecticut police officers were charged 0:08:13.880 --> 0:08:16.360 yesterday and a June incident that left a thirty six 0:08:16.440 --> 0:08:20.600 year old man paralyzed. Prosecuted say Randy Cox was handcuffed 0:08:20.600 --> 0:08:22.920 and not wearing a seat belt when he flew head 0:08:22.920 --> 0:08:25.480 first into the back of a police transport van when 0:08:25.520 --> 0:08:29.840 the driver suddenly stopped. New Haven Mayor Justin Ellicker new 0:08:29.840 --> 0:08:33.959 Haven is committed to accountability for all individuals involved in 0:08:34.000 --> 0:08:37.439 this traffic incident. Mayor Elkers says the officers were charged 0:08:37.440 --> 0:08:41.120 with reckless endangerment and cruelty. Meanwhile, Cox's family has followed 0:08:41.160 --> 0:08:44.160 a one hundred million dollars civil suit against the officers 0:08:44.240 --> 0:08:47.760 and the city. A Senate bill protecting same sex marriage 0:08:47.760 --> 0:08:51.160 cleared another procedural hurdle last night. At amendment to the 0:08:51.240 --> 0:08:54.840 Respect from Marriage Act would ensure it does not infringe 0:08:55.120 --> 0:08:59.080 on religious rights and protections. Passage of the legislation is 0:08:59.120 --> 0:09:03.000 expected today. Former Vice President Mike Penn said Donald Trump 0:09:03.040 --> 0:09:06.439 showed poor judgment for dining last week at his Maralago 0:09:06.520 --> 0:09:10.560 resort with rapper Ya and well known white nationalist Nick Fluentis. 0:09:10.720 --> 0:09:13.920 Pence says his former boss should denounce their hateful rhetoric 0:09:13.960 --> 0:09:18.880 without qualification. President Trump was wrong, uh to give a 0:09:19.840 --> 0:09:24.199 white nationalist u um an anti semid and Holocaust Denierre 0:09:24.240 --> 0:09:27.200 a seat at the table, and I think you should apologize. 0:09:27.559 --> 0:09:31.600 Pennce spoke to News Nation Global News twenty four hours 0:09:31.600 --> 0:09:34.679 a day on air and on Bloomberg Quicktake, powered by 0:09:34.679 --> 0:09:37.640 more than twenty seven hundred journalist and analysts more than 0:09:37.640 --> 0:09:41.439 one twenty countries. I'm Michael Barr, and this is Bloomberg 0:09:41.559 --> 0:09:49.000 nither Okay, Michael, thanks six o nine on Wall Street 0:09:49.000 --> 0:09:52.439 time for the Bloomberg Sports update Frontify Try state outis 0:09:52.480 --> 0:09:54.840 John stash Our? All right, Nathan. First meeting of the 0:09:54.920 --> 0:09:57.439 season between the Devils and Rangers, who are in the 0:09:57.520 --> 0:09:59.880 NHL's Final four. Last season, Devils have not even been 0:10:00.040 --> 0:10:01.840 the playoffs since two thousand and eight. Team, but no 0:10:01.960 --> 0:10:04.960 doubt who the better team has been so far this season, 0:10:05.000 --> 0:10:08.200 Devils are nineteen and four. They've won sixteen of seventeen. 0:10:08.200 --> 0:10:10.640 They won five three at the Garden, coming back from 0:10:10.640 --> 0:10:13.520 an early to nothing deficit at Barkley's forty five point 0:10:13.559 --> 0:10:16.679 for Kevin Durambas only five shots nets Pete Orlando one 0:10:16.679 --> 0:10:18.480 O nine one O two to get to five hundred. 0:10:18.559 --> 0:10:20.720 Kyrie Irving had at twenty. VN Simmons, who has finally 0:10:20.760 --> 0:10:23.439 been starting to play like he did with Philadelphia, heard 0:10:23.440 --> 0:10:25.920 his knee. Day to day. Kembo Walker, the New York 0:10:26.000 --> 0:10:28.280 native whose homecomings with the Knicks last season did not 0:10:28.400 --> 0:10:30.760 go well, has signed with Dallas. The Man's hoping he 0:10:30.760 --> 0:10:34.120 can fill the role Jalen Brunson had with them last season. 0:10:34.120 --> 0:10:37.480 Brunson now course with the Knicks Yankee offseason goal try 0:10:37.480 --> 0:10:39.959 and get better than Houston. But the Astros, who took 0:10:40.000 --> 0:10:42.760 the Yankees out and won the World Series to sign 0:10:42.840 --> 0:10:45.120 a free agent slugger jose A. Bray, who spent nine 0:10:45.160 --> 0:10:46.480 years of the White Sox. He was the a l 0:10:46.600 --> 0:10:48.560 m v P just a couple of years ago. Monday 0:10:48.600 --> 0:10:53.040 Night Football, Pittsburgh one at Indianapolis to seventeen. The US 0:10:53.080 --> 0:10:56.240 World Cup team played well in gaining that scoreless draw 0:10:56.320 --> 0:10:59.160 with England, but in reality their situation would likely be 0:10:59.240 --> 0:11:01.720 the same as it is now had they lost that game, 0:11:01.760 --> 0:11:05.000 beat a Ran today Advans Blues or have a third 0:11:05.000 --> 0:11:07.680 strade tie and they are leaving guitar. The U S 0:11:07.720 --> 0:11:10.560 coach is Greg Burrholter. Make no mistake about it. This 0:11:10.640 --> 0:11:13.480 is a knockout game for both teams. So it's gonna 0:11:13.520 --> 0:11:16.360 be a high level intensity. Um. You know, I love 0:11:16.400 --> 0:11:19.680 what are Rands done um so far, especially the last game. 0:11:19.720 --> 0:11:24.360 A lot of commitment, Um, really good counterattacking and um, 0:11:24.400 --> 0:11:27.080 you know, we expected to be a hotly contested game 0:11:27.559 --> 0:11:30.600 and we'll be ready for game starts today two o'clock. 0:11:30.679 --> 0:11:34.040 John todash Our, bloom Bird Sports. All right, John, thank you. 0:11:34.120 --> 0:11:36.839 Right now, SMP futures are still higher, but by just 0:11:37.000 --> 0:11:39.480 six points. Staff futures have moved just a little bit 0:11:39.520 --> 0:11:43.079 lower down six points have been moving between games and 0:11:43.160 --> 0:11:46.240 losses this morning. NASDAC futures still on the rise, but 0:11:46.600 --> 0:11:48.720 not as high as they've been in the session, higher 0:11:48.720 --> 0:11:51.679 by forty points. Right now ten your treasury is up 0:11:51.720 --> 0:11:55.040 six thirty seconds. The three point six yield on the 0:11:55.080 --> 0:11:58.000 two year close to four point four three per cent. 0:11:58.600 --> 0:12:08.560 You're listening to bloom Burg Daybreak. Bloomberg Sports was brought 0:12:08.600 --> 0:12:10.680 to you by Audie. Don't let someone else drive off 0:12:10.679 --> 0:12:13.079 in the outie model you've always wanted. Visit your local 0:12:13.120 --> 0:12:15.120 Tri state autie dealers to get behind the wheel of 0:12:15.120 --> 0:12:22.560 yours today, or visit autie Offers dot com for more information, markets, 0:12:22.640 --> 0:12:25.720 headlines and breaking news twenty four hours a day at 0:12:25.760 --> 0:12:29.160 Bloomberg dot com, The Bloomberg Business at Hand at Bloomberg 0:12:29.240 --> 0:12:38.800 Quick Tape, He's a Bloomberg business flash and I'm ter 0:12:38.880 --> 0:12:41.160 at Moscow and US Dock Index futures are pointing to 0:12:41.200 --> 0:12:44.280 a moderately stronger open as speculation mounts set. Unrest in 0:12:44.400 --> 0:12:47.640 Chinese cities over COVID restrictions would force authorities to move 0:12:47.679 --> 0:12:50.520 faster and loosening the curbs. We checked the markets every 0:12:50.559 --> 0:12:53.839 fifteen minutes throughout the trading day on Bloomberg s and 0:12:53.920 --> 0:12:57.080 P futures up seven points this morning. Down futures are 0:12:57.120 --> 0:13:00.439 little change and nasday futures of forty five. The decks 0:13:00.440 --> 0:13:02.719 in Germany's up a tenth of a percent now ten, 0:13:02.760 --> 0:13:05.080 Your treasury up six thirty seconds. You have three point 0:13:05.120 --> 0:13:07.360 six five percent they yield on the two year four 0:13:07.400 --> 0:13:10.400 point four two percent. Nine x screwed oil on the rise, 0:13:10.520 --> 0:13:12.480 up about two and a half percent, up a dollar 0:13:12.559 --> 0:13:15.120 ninety nine at seventy nine dollars twenty three cents of barrel. 0:13:15.320 --> 0:13:17.320 Called meg school that three quarters of a percent, or 0:13:17.360 --> 0:13:20.640 thirteen dollars forty cents at seventeen sixty eight seventy announced. 0:13:21.000 --> 0:13:23.520 The Euro one point oh three seven two against the dollar, 0:13:23.559 --> 0:13:26.360 British pound one point too, and the yen is at 0:13:26.360 --> 0:13:29.600 one thirty eight point oh four and bitcoin this morning 0:13:29.679 --> 0:13:32.720 up one point nine percent. It's at just over sixteen thousand, 0:13:32.800 --> 0:13:35.800 five hundred dollars. That's a Bloomberg business flash. Now here's 0:13:35.840 --> 0:13:38.240 Michael Barr with more on what's going on around the world. 0:13:38.320 --> 0:13:41.400 Michael Karen, thank you very much. Chinese University as they're 0:13:41.400 --> 0:13:44.600 sending students home. As the ruling Communist party titans anti 0:13:44.679 --> 0:13:49.160 virus controls and tries to prevent more protests, crowds angered 0:13:49.200 --> 0:13:52.360 by its severe zero COVID restrictions have called for President 0:13:52.400 --> 0:13:54.640 shi Jing Ping to resign. More in the story. In 0:13:54.679 --> 0:13:57.920 the minute, President Biden is asking Congress to intervene and 0:13:57.960 --> 0:14:01.000 block a railroad strike before next month. Deadline at the 0:14:01.000 --> 0:14:04.440 World Cup later today. The US faces Iran in the NFL, 0:14:04.520 --> 0:14:07.079 the Steelers beat the Colts in the NBA, and the Nets, 0:14:07.080 --> 0:14:09.679 Wizards and Celtics one in the NHL. The Devil's beat 0:14:09.720 --> 0:14:12.080 the Rangers. Global News twenty four hours a day on 0:14:12.240 --> 0:14:15.120 here and on Bloomberg Quick Take, powered by more than 0:14:15.200 --> 0:14:18.240 twenty seven under journalist and analysts more than dwenty countries. 0:14:18.400 --> 0:14:20.880 I'm Michael Barr. This is Bloomberg. Nathan all right, Michael. 0:14:20.880 --> 0:14:23.440 Thanks six nineteen on Wall Street Live from the Bloomberg 0:14:23.480 --> 0:14:26.960 Interactive Brokers Studios. This is Bloomberg Daybreak, and as promised, 0:14:26.960 --> 0:14:29.680 we do have more on the situation in China. Live 0:14:29.800 --> 0:14:33.600 from Hong Kong. We go to Bloomberg political correspondent Rebecca 0:14:33.760 --> 0:14:38.120 Chung Wilkins. Rebecca, good morning. The reporting from what we 0:14:38.240 --> 0:14:42.080 understand is that we've seen somewhat dampening of the protests 0:14:42.120 --> 0:14:43.760 that have been going on for days and a bit 0:14:43.800 --> 0:14:47.360 more conciliatory tone from the Chinese government. What more can 0:14:47.400 --> 0:14:50.880 you tell us about what's happening there. Yes, we saw 0:14:51.000 --> 0:14:54.600 really significant police present in many of the major Chinese 0:14:54.600 --> 0:14:58.440 cities last night, and we're expecting that again to be 0:14:58.560 --> 0:15:04.160 here President en Um so Pitty like Beijing, Shanghai Hanjo 0:15:04.280 --> 0:15:08.560 will likely have that significantly presence, so dampening and muting 0:15:08.640 --> 0:15:11.280 some of the activity that we've seen. On the other hand, 0:15:11.320 --> 0:15:14.600 we are also hearing from the health authorities this sort 0:15:14.640 --> 0:15:18.400 of conciliatory and more reasonable tone, and I think we 0:15:18.440 --> 0:15:21.920 haven't seen any sort of acknowledgement so far of the protest, 0:15:21.960 --> 0:15:25.880 but we did hear authorities saying that local government do 0:15:26.120 --> 0:15:30.800 need to treat reasonable requests around COVID in a timely manner. 0:15:30.960 --> 0:15:33.560 And it's really the closest that we've seen to some 0:15:33.640 --> 0:15:37.000 kind of attempt to recognize what so many Chinese people 0:15:37.160 --> 0:15:40.880 are deeply frustrated about. So it's a recognition. Can it 0:15:40.960 --> 0:15:44.520 be seen as a move away, at least a tentative 0:15:44.600 --> 0:15:48.360 move away from the strict COVID zero policies that sort 0:15:48.360 --> 0:15:53.680 of sparked these massive protests. Well, one big positive sign 0:15:53.720 --> 0:15:55.880 I think on that front is this push to get 0:15:56.000 --> 0:16:00.200 China's elderly population vaccinated. That although overall that and aation 0:16:00.280 --> 0:16:03.200 levels are relatively high in China, that's a real weak spot. 0:16:03.640 --> 0:16:06.480 So only about forty percent of china population over a 0:16:06.600 --> 0:16:09.200 t have had a booster vaccine for example. UM, and 0:16:09.280 --> 0:16:12.440 most experts think there's no way that China can start 0:16:12.480 --> 0:16:15.280 to reopen unless they tackle this problem. So that is 0:16:15.280 --> 0:16:17.680 providing quite a lot of optimism in the markets that 0:16:17.720 --> 0:16:20.400 you mentioned today. UM. The other thing is that we've 0:16:20.400 --> 0:16:23.640 heard this phrase repeated again and again since the protest again, 0:16:23.920 --> 0:16:28.120 and that is that China is constantly adjusting its COVID protocols. 0:16:28.160 --> 0:16:31.120 That just allows as narrative to crack the door open. 0:16:31.400 --> 0:16:33.960 Even when we start to see more concrete moves by 0:16:34.000 --> 0:16:36.840 local government again, they will be able to sort of 0:16:36.840 --> 0:16:39.440 frame it under that narrative. But it is important to 0:16:39.480 --> 0:16:42.080 remember that while central government is sort of directing the 0:16:42.080 --> 0:16:45.800 problem the sort of big line here, ultimately it's local 0:16:45.880 --> 0:16:48.800 governments that are going to have to really reinforce and 0:16:48.840 --> 0:16:52.560 decide just what risks they're willing to take, particularly for 0:16:52.680 --> 0:16:55.880 each province's health care system. Healthcare very very sort of difficult, 0:16:55.960 --> 0:17:00.560 differently administered UM, and differently with different effects of rush China. 0:17:01.000 --> 0:17:06.320 Other than the push to get more elderly population vaccinated, 0:17:06.359 --> 0:17:11.880 what other concessions are we hearing from the Chinese government, Well, 0:17:11.880 --> 0:17:14.200 those are the two big things. Is problem to promise 0:17:14.280 --> 0:17:17.520 to respond timely in a timely way to to request 0:17:17.600 --> 0:17:20.639 as well as that vaccine push. Um, there is also 0:17:20.680 --> 0:17:24.560 a movement to sort of potentially moderate and follow these 0:17:24.560 --> 0:17:29.360 twenty principles for COVID management, which authorities laid out about 0:17:29.400 --> 0:17:32.639 a couple of weeks ago, just before, just before we 0:17:32.720 --> 0:17:36.560 started these protests started to emerge. It really remains to 0:17:36.640 --> 0:17:40.880 be seen whether or not governments actually take that up. Um. 0:17:41.160 --> 0:17:44.160 Jersey and province also um, and we did. Is again 0:17:44.280 --> 0:17:47.320 just one province in China, but also saying that the 0:17:47.320 --> 0:17:49.760 most important thing there is not controlling the virus but 0:17:49.800 --> 0:17:53.600 payl think people first. Now that's quite a different message 0:17:53.600 --> 0:17:57.040 than we've heard elsewhere. Of course, all this is coming 0:17:57.280 --> 0:18:00.480 just a few weeks after Chinese President She jen Ping 0:18:00.560 --> 0:18:04.640 solidified his unprecedented third term. What kind of a risk 0:18:04.960 --> 0:18:11.840 is there are these protests putting on President She's leadership here? Yes, indeed, 0:18:11.880 --> 0:18:15.560 I mean there was immense worry back then that as 0:18:15.680 --> 0:18:19.160 She sort of moved to fill all those top positions 0:18:19.160 --> 0:18:22.040 in his party with allies, that there wouldn't be anyone 0:18:22.160 --> 0:18:25.600 to guide him or give pushed back when something went wrong. 0:18:25.800 --> 0:18:29.040 And I think there is again that concern. Now you 0:18:29.080 --> 0:18:31.840 know who are the sort of diverse voices are offering 0:18:31.880 --> 0:18:34.920 alternate points of views here. Um, it is a really 0:18:34.960 --> 0:18:37.160 critical point for his leadership, although of course no one 0:18:37.200 --> 0:18:40.639 really expects there to be any real existential threat to 0:18:40.680 --> 0:18:43.080 the party or to see at this moment, but it 0:18:43.200 --> 0:18:46.400 certainly is. The most vocal protests aren't that rare in China. 0:18:46.480 --> 0:18:49.000 They do happen, but it's very rare to see them 0:18:49.080 --> 0:18:53.159 directly criticizing Season Ping and the Chinese Communist Party in 0:18:53.200 --> 0:18:56.159 this way. And of course if this sort of speaks 0:18:56.160 --> 0:19:00.240 of this broader melaid and this broader discontent after two 0:19:00.320 --> 0:19:03.280 years not just very strict COVID controls, but wheels wort 0:19:03.280 --> 0:19:06.040 have drag on the economy that's seen at itues like 0:19:06.080 --> 0:19:09.000 some of those property policies and the property crackdown that 0:19:09.040 --> 0:19:12.719 we've seen too. Thanks as always for keeping us updated 0:19:12.760 --> 0:19:14.639 on what's happening, and I will be checking back in 0:19:14.720 --> 0:19:17.240 with you in the days to come here as well. 0:19:17.240 --> 0:19:21.120 That's Bloomberg Political correspondent Rebecca Chung Wilkins joining us live 0:19:21.280 --> 0:19:23.680 this morning from Hong Kong. As we're seeing a little 0:19:23.720 --> 0:19:27.560 bit more calm following the days of protests over strict 0:19:27.600 --> 0:19:30.720 COVID restrictions, and again a little bit more of a 0:19:30.760 --> 0:19:35.400 conciliatory tone. Some concessions we're hearing from Chinese health authorities 0:19:35.960 --> 0:19:38.560 as the unrest continues to play out. Looking ahead to 0:19:38.600 --> 0:19:41.800 the market open this morning on Wall Street, still on 0:19:41.840 --> 0:19:44.639 the green, but we'll call it light green. With SMP 0:19:44.760 --> 0:19:47.960 futures up eight points, Staff futures up six. That's a 0:19:48.000 --> 0:19:51.800 little changed. NASAC futures are higher by fifty points ten. 0:19:51.880 --> 0:19:54.440 Your treasury is moving higher by seven thirty seconds. The 0:19:54.520 --> 0:19:56.960 yield down down to three point six five on the 0:19:57.000 --> 0:19:59.320 benchmark tenure. Note the yield on the two year four 0:19:59.440 --> 0:20:03.360 point four or two. And you're listening to Bloomberg Daybreak, 0:20:07.640 --> 0:20:10.600 Bloomberg eleven three oh weather. Sunshine today, upper forties, will 0:20:10.600 --> 0:20:13.840 have rain tomorrow to breeze, milder upper fifties for highs. 0:20:13.880 --> 0:20:15.959 We'll be back in the mid forties, sunny and breezy 0:20:16.040 --> 0:20:23.000 for Thursday. Right now thirty seven in Central Park, broadcasting 0:20:23.080 --> 0:20:26.800 live from the Bloomberg Interacted Broker's studio in New York. 0:20:26.920 --> 0:20:30.040 Bloomberg e living free on to Washington, d C. Bloomberg 0:20:30.119 --> 0:20:33.200 ninety nine one to Boston, Bloomberg one oh six one 0:20:33.320 --> 0:20:36.240 to San Francisco, Bloomberg and No. Sixty to the country 0:20:36.320 --> 0:20:38.960 Sirius XM to the one nine T and around the 0:20:39.000 --> 0:20:42.800 globe the Bloomberg Business app in Bloomberg Radio dot com. 0:20:42.840 --> 0:20:51.440 This is Bloomberg day Break six thirty on Wall Street. 0:20:51.440 --> 0:20:54.159 Good morning. I'm Nathan Hagar and I'm Karen Moscow, and 0:20:54.200 --> 0:20:56.439 we're just about three hours away from the open of 0:20:56.520 --> 0:20:58.439 us training kind to the fine things that you need 0:20:58.480 --> 0:21:00.959 to notice start your day. Brought to you by Interactive 0:21:00.960 --> 0:21:03.600 Brokers i dk R. Event Trader offers a new way 0:21:03.600 --> 0:21:06.040 to trade futures. Use e vent contracts to trade your 0:21:06.080 --> 0:21:09.800 opinion on yes orday questions and KEYCME futures. Marcus learn 0:21:09.800 --> 0:21:13.720 more at event trader dot Interactive Brokers dot com. First 0:21:13.720 --> 0:21:16.119 officials in China say they're looking to speed up COVID 0:21:16.160 --> 0:21:20.080 vaccinations for senior citizens, but they're stopping short of mandates. 0:21:20.320 --> 0:21:22.800 It comes on the heels of protests to China's strict 0:21:22.800 --> 0:21:26.320 COVID policies. Craig Singleton, a senior China fellow at the 0:21:26.320 --> 0:21:30.200 Foundation for Defensive Democracies, says President she Juan Paing might 0:21:30.240 --> 0:21:34.399 not have many options for easing restrictions. I suspects going forward. 0:21:34.440 --> 0:21:36.160 The big problem that's going to be that the CCP 0:21:36.240 --> 0:21:39.199 has not articulated a clear path out of zero COVID. 0:21:39.480 --> 0:21:41.919 Ching Ping has so closely staked his legacy on the 0:21:41.960 --> 0:21:45.280 notion that China's pandemic response has been better than the West, 0:21:45.600 --> 0:21:49.200 that narrative would be really damaged if China lifted these controls. 0:21:49.480 --> 0:21:52.560 Craig Singleton with the Foundation for the Defensive Democracies, there's 0:21:52.560 --> 0:21:55.560 a guest on Bloomberg Sound on Catch the show weekdays 0:21:55.560 --> 0:21:58.640 at five pm Eastern on Bloomberg Radio I meantime caring. 0:21:58.680 --> 0:22:01.560 The US is taking note of China's response to the protest. 0:22:01.640 --> 0:22:05.040 National Security Council spokesman John Kirby talked about it yesterday. 0:22:05.400 --> 0:22:07.639