Speaker 1: Markets, headlines and breaking news twenty four hours a day
Speaker 1: at Bloomberg dot Com, at Bloomberg Business Outland, at Bloomberg Picktape.
Speaker 1: This is a Bloomberg Business Flash. But I'm Karen Moscow.
Speaker 1: You must not indise future is lower this morning along
Speaker 1: with European shares and the concerned. The resolve at central
Speaker 1: banks and continue their fine against inflation will tip the
Speaker 1: economy into recession. And we check the markets all day
Speaker 1: long here on Bloomberg SMP futures down more than one percent,
Speaker 1: down fifty four points, Dow and NASDACK future is also
Speaker 1: down more than one percent, with Dow futures down four
Speaker 1: hundred twelve points and nastack futures down a hundred twenty one.
Speaker 1: Can your treasury down twelve thirty seconds? He on three
Speaker 1: point four nine percent and they yield on the two
Speaker 1: year at four point to five percent, And that's a
Speaker 1: Bloomberg Business flash. Nathan all right, Karen, thanks for coming
Speaker 1: up to five fifty six on Wall Street's side for
Speaker 1: our daily Bloomberg lob Brief exploring legal issues in the news,
Speaker 1: and today we focus on a New York aw that
Speaker 1: temporarily lifts the statute of limitations on civil sexual abuse
Speaker 1: and harassment claims, and it is expected to lead to
Speaker 1: a flood of lawsuits. Hundreds of alleged victims of sought
Speaker 1: legal advice in recent days, and companies are calling outside
Speaker 1: attorneys to prepare for potential claims. That's according to interviews
Speaker 1: with lawyers from across the country. Lawsuits have already been
Speaker 1: filed against former president Donald Trump, comedian Bill Cosby, and
Speaker 1: billionaire Leon Black over allegations they assaulted women decades ago,
Speaker 1: which their lawyers deny. For more, Bloomberg's June Grosso speaks
Speaker 1: with legal reporter Eric Larson kind of plaintiff sua company
Speaker 1: to hold them accountable for alleged abuse even if the
Speaker 1: alleged abuser is deceased. Yes, in fact, that has already happened.
Speaker 1: In the case of Atlantic Records, part of Warner Music Group.
Speaker 1: Warner Music is being dued because the Atlantic Record founder
Speaker 1: allegedly decades ago, more than forty years ago, sexually abused women.
Speaker 1: So now the company, you know, saying that they're looking
Speaker 1: into these allegations, interviewing people who may have been around
Speaker 1: back then, saying that many of the individuals who would
Speaker 1: have been witnessing our deceased or in their eighties or nineties.
Speaker 1: So clearly this case there's a good illustration of how
Speaker 1: difficult it might be for some of these defendants to
Speaker 1: defend themselves. Notably the suit against Bill Cosby. You know,
Speaker 1: it also named NBC Universal Media as a defendant because
Speaker 1: it aired the Cosby Show in a different World, you know,
Speaker 1: to Echather the cousby starting. So NBC Universal is accused
Speaker 1: of especially turning a blind eye to cause these conducts
Speaker 1: for years. A similar claim made against one of the
Speaker 1: music groups. Of course, both companies are expected to fit
Speaker 1: those very strongly in court, and a lot of these
Speaker 1: claims are expected to be settled before a lawsuit is
Speaker 1: even filed, to avoid the publicity associated with it. So
Speaker 1: plaintiff lawyers best chance is before they even filed the suit,
Speaker 1: That's right. That's why a few of the lawyers, I
Speaker 1: suppose to you said that what we end up seeing
Speaker 1: in court, actual lawsuits that are filed are really just
Speaker 1: going to be the tip of the iceberg, and that
Speaker 1: a lot of these claims are are going to be
Speaker 1: resolved before anything becomes public, and that as these plane
Speaker 1: emplawyers know, you know, some of these claims may be
Speaker 1: so serious that a company will simply want to settle
Speaker 1: them just to keep them from becoming public. That they
Speaker 1: can use that as part of their settlement strategy. So
Speaker 1: I'm not sure if that increases the amount of money
Speaker 1: that they get paid or whatnot. I'm sure that every
Speaker 1: settlement is going to be handled a little bit differently,
Speaker 1: but clearly the reputational damage is potentially significant for some
Speaker 1: of these employers. If you can imagine as Bloomberg Legal
Speaker 1: reporter Eric Larson speaking with our June Grosso on this
Speaker 1: new New York law that temporarily lifts the statue of
Speaker 1: limitations on civil sexual abuse claims. You can catch more
Speaker 1: of that interview, plus analysis of the latest legal news,
Speaker 1: by subscribing to the Bloomberg Law Podcast or downloading the
Speaker 1: show at Bloomberg dot com slash podcast. Attorneys can find
Speaker 1: exceptional legal research and business development tools at Bloomberg Law
Speaker 1: dot com and on the Bloomberg terminal b law Go.
Speaker 1: Looking ahead to the market open looks like more losses
Speaker 1: for Friday, SMP futures down fifty one points, Stown futures
Speaker 1: down three in Nastack futures are lower by a hundred
Speaker 1: thirteen points the ten. Your treasury is down thirteen thirty
Speaker 1: seconds deal three point four nine percent, yield on the
Speaker 1: two year four point to five percent, and I'm ex
Speaker 1: Scrooge down two and a half percent now down a
Speaker 1: buck one barrel comex Scold up two tenths per center,
Speaker 1: three dollars higher at seventy nine eighty per ounce. Euro
Speaker 1: one point zero six to five against the dollar. The
Speaker 1: end one thirty seven point one two. We'll get a
Speaker 1: check of the business headlines, all the news you need
Speaker 1: to start your day. Our two of Bloomberg day Break
Speaker 1: starts right now. Markets, headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, bloo Bloomberg Business
Speaker 1: apt and at Bloomberg Quick Take three. He's a Bloomberg
Speaker 1: Business Flash and I'm Karen Moscow US not Index futures
Speaker 1: are lower this morning, along with European shares and the
Speaker 1: concerned the resolve of central banks to continue their fight
Speaker 1: against inflation will tip the economy into recession. You check
Speaker 1: the markets all day long year at Bloomberg S and P.
Speaker 1: Future is down forty eight points or one at a
Speaker 1: quarter percent down. Futures down three hundred sixty seven points
Speaker 1: or one point one percent, and NAZDAC futures down a
Speaker 1: hundred twelve points or one percent. The decks in Germany's
Speaker 1: down about eight tents of a percent. Ten year treasury
Speaker 1: down thirteen thirty seconds, heel three point four nine percent,
Speaker 1: the yield on the two year four point to five percent.
Speaker 1: Nine X screwed oil is down two points seven percent,
Speaker 1: down two dollars six cents at seventy four dollars five
Speaker 1: cents of barrel comics called up two tens percent or
Speaker 1: three dollars thirty cents at seventeen ninety one ten an ounce.
Speaker 1: The euro one point oh six to four against the dollar,
Speaker 1: British found one point to one six five and the
Speaker 1: ends one thirty seven point oh six. And bitcoin is
Speaker 1: down to in a quarter percent at seventy thousand dollars.
Speaker 1: And that's a bloomberg business flash. Now here's Amy Morris
Speaker 1: with Moore on what's going on around the world. Amy,
Speaker 1: thank you, Karen. Ukrainian authorities say Russia has launched a
Speaker 1: major missile attack on energy of facilities and infrastructure are
Speaker 1: Ukrainian Air Force spokesman says Russia today fired more than
Speaker 1: sixty missiles. A huge aquarium in the center of Berlin
Speaker 1: has burst, spilling more than two hundred sixty four thousand
Speaker 1: gallons of water and debris, causing a wave of destruction
Speaker 1: at the sea life tourist attraction. They're looking into the cause,
Speaker 1: but for now they're blaming freezing temperatures. In sports, the Caps,
Speaker 1: Bruins and Devils lose. The Rangers win. The World Cup
Speaker 1: final between Argentina and France. Is Sunday Global News twenty
Speaker 1: four hours a day on errand on Bloomberg Quick Take,
Speaker 1: powered by more than twenty hundred journalists and analysts in
Speaker 1: more than one hundred twenty countries. I'm Amy Morris. This
Speaker 1: is Bloomberg. Nathan all right, Amy, Thanks, it's two now
Speaker 1: on Wall Street. This is Bloomberg Daybreak. I'm Nathan Hagar.
Speaker 1: That's Karen Moscow. And we've got some other stories making
Speaker 1: news this morning. So let's get right to the Beijing's
Speaker 1: rapidly spreading COVID outbreak has turned the Chinese capital into
Speaker 1: a virtual ghost town. We've seen stores close, restaurants turn empty,
Speaker 1: residents staying home either because they have COVID or afraid
Speaker 1: they'll catch it. While officials have abandoned efforts to track
Speaker 1: case numbers. Anecdotal evidence suggest entire families and offices in
Speaker 1: Beijing have become infected in the span of just days.
Speaker 1: Safe to say, it could prove a difficult issue, to
Speaker 1: say the very least for China's less developed healthcare system.
Speaker 1: Real issues, they're Karen, Oh, indeed, all right, Nathan, While
Speaker 1: we turn to the markets now and Bank of America,
Speaker 1: which is saying that global equity funds saw big inflows
Speaker 1: ahead of this week's f O, m C and ECB
Speaker 1: rate hikes, then hawkish comments triggered a sharp sell off
Speaker 1: in equities. Strategist led by Michael Hartnett say a policy
Speaker 1: mistake by central banks could result in a hard economic
Speaker 1: landing next year. Well. Meantime, the largest U. S steelmaker
Speaker 1: is warning its shareholder as the recession concerns could affect demand.
Speaker 1: New Core says it's steel mills business will report considerably
Speaker 1: lower earnings in the fourth quarter due to lower shipments,
Speaker 1: and it also notes average selling prices are down well, Nathan.
Speaker 1: Amazon is making more moves in the premium video space.
Speaker 1: It's partnering with Games Workshop Group to develop film and
Speaker 1: television productions, with initial work focusing on the Warhammer forty
Speaker 1: universe Warhammer for e K, as it's known by fans.
Speaker 1: It's a franchise that already includes popular tabletop games, over
Speaker 1: three hundred novels, and has licenses content for several successful
Speaker 1: video games. Warhammer forty K Navan. Yeah, I guess I'm
Speaker 1: gonna have to catch up with see if my kids
Speaker 1: know anything about that. I am lost when it comes
Speaker 1: to video games. All right, let's get right back to
Speaker 1: this market check in now with Tracy mcmillion, head of
Speaker 1: Global Asset Allocations Strategy of Wells Fargo. This is no game, Tracy,
Speaker 1: as we watch this sell off continue on the back
Speaker 1: of really hawkish rhetoric from central banks, what is this
Speaker 1: market getting set for? Yeah, so definitely markets are keying
Speaker 1: off the said latest policy decision, and you know, add
Speaker 1: to that the the CBS hawkish comments yesterday, and you know,
Speaker 1: markets are are really starting to, um, I guess recognize
Speaker 1: the reality of a recession, a recession probably here in
Speaker 1: the US and a global recession and what that means.
Speaker 1: And you know the unemployment, the earnings contraction that comes
Speaker 1: with that. So you know what what markets are now
Speaker 1: looking at is that reality, and they don't typically bottom
Speaker 1: until the central banks are are finished tightening, so you know,
Speaker 1: we won't necessarily see a recovery as long as we're
Speaker 1: we're um, we have restrictive monetary policy, so you know, UM,
Speaker 1: we think that markets are probably in for more choppiness, UM,
Speaker 1: for a difficult ride as we move into three more
Speaker 1: chopping us or a downward trajectory. You say that the
Speaker 1: market doesn't hit bottom until after a recession. What kind
Speaker 1: of bottom can we be looking for here? Yeah, so, um,
Speaker 1: today we have a price target at the end of
Speaker 1: three of forty four hundred on the SMP five hundred,
Speaker 1: and so you know, from where we are today, that's
Speaker 1: about fourteen percent higher. But we think that markets could
Speaker 1: go down to the mid to lower three thousands, and
Speaker 1: that's where we think that the risk reward tradeoff is
Speaker 1: going to be much more attractive. At thirty five hundred,
Speaker 1: for example, to our rand target, that's about any five
Speaker 1: percent upside, So we'd be looking for those opportunities around
Speaker 1: the mid three thousands. If we get down to the
Speaker 1: lower three thousands, that's probably another good opportunity to put
Speaker 1: cash to work. And we're just shy of on the
Speaker 1: SMP five hundred right now, for those keeping score, where
Speaker 1: do you see those potentials, those pockets for opportunity heading
Speaker 1: into the new year, Tracy, Yes, And heading into the
Speaker 1: new year, we're going to continue to be defensive, So
Speaker 1: that means US sets that are international assets, and we
Speaker 1: like large tap companies over mid tap companies UH and
Speaker 1: small cap companies. And we also like UM the sectors
Speaker 1: that have higher quality earnings. So that's for US UM, UH,
Speaker 1: information technology, energy, we like healthcare. We'd stay away from
Speaker 1: consumer discretionary and reads that are more economically sensitive and
Speaker 1: within fixed income UM. We like the short term part
Speaker 1: of the curve because of those higher rates and the
Speaker 1: optionality that it provides UM, and we like long term
Speaker 1: because we are seeing these rates that are higher than
Speaker 1: they've been over the course of the last decade. Are
Speaker 1: you looking for further earnings revision? Setting into this conversation,
Speaker 1: we just noted the new core is UH predicting considerably
Speaker 1: lower earnings, and we've had this sort of parade of
Speaker 1: companies forecasting further downward revisions for earnings. Is that something
Speaker 1: that's part of the theme for you in Yeah, I
Speaker 1: definitely is we're looking for earnings estimates to come down
Speaker 1: quite a bit from from where they are today. UM
Speaker 1: Our earnings estimate on the SMP five hundred is two
Speaker 1: oh five, and so that is significantly below the two
Speaker 1: it's keen that is the top line estimate for analysts,
Speaker 1: and significantly below the bottoms up estimates which are still
Speaker 1: around two. So in our last minute here, Tracy, what's
Speaker 1: the possibility that we could see a Santa rally at
Speaker 1: the end of this year? Is is that just out
Speaker 1: the window at this point? Well, I guess anything's possible,
Speaker 1: especially with very thin trading here at the end of
Speaker 1: the year. UM. Any directionality can push markets UM significantly
Speaker 1: higher or significantly lower UM. But I'd say that, you know,
Speaker 1: given the news that we've gotten over the past couple
Speaker 1: of days, we just really have gotten nothing to support
Speaker 1: a bulk case, so UM a Santa rally is probably
Speaker 1: unlikely this year. All right, Thanks as always Tracy McMillian.
Speaker 1: See how things go. And we do have the possibility
Speaker 1: for yet more of vlatility, especially today as a lot
Speaker 1: of these options contracts come doing Triple Witch and Tracy McMillian,
Speaker 1: head of Global Asset Allocations Strategy, at Wells Fargo with
Speaker 1: us this morning as we watch the selling continue around
Speaker 1: the world. SMP futures right now are down fifty three point,
Speaker 1: STAFF futures down four or five, NASTAC futures are lower
Speaker 1: by a hundred twenty five points. The decks in Germany
Speaker 1: down just about one percent. The CACK in Paris is
Speaker 1: lower by one and a quarter percent. So it's a
Speaker 1: sell off across the board. In risk assets, tenure treasuries
Speaker 1: down thirteen thirty seconds, the old three point four nine
Speaker 1: percent yield on the two year right now four point
Speaker 1: to five percent, and nime X screwed as lower as well,
Speaker 1: down two point six percent, trading at seventy four dollars
Speaker 1: sixteen cents of barrel. Much more to come. Stay with us.
Speaker 1: You're listening to Bloomberg Daybreak, Markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com, the
Speaker 1: Bloomberg Business At and a Bloomberg Quick Take. She's a
Speaker 1: Bloomberg Business Flash. Hey, good morning. I'm Karen Moscow, and
Speaker 1: futures are falling this morning. We check the markets all
Speaker 1: day long here on Bloomberg Radio with SMP futures UH
Speaker 1: down one point three percent on fifty one points this morning.
Speaker 1: Down futures down one point two percent or three hundred
Speaker 1: eighty seven points, and NASDAG futures are falling one point
Speaker 1: one percent or hundred twenty seven points. Tenure treasury down
Speaker 1: twelve thirty seconds. He on three point four nine percent.
Speaker 1: They yield on the two year four point to five percent.
Speaker 1: Nine X. Screwed oil is down two points seven percent
Speaker 1: or two dollars two cents at seventy four dollars nine
Speaker 1: cents of barrel. And that's a Bloomberg business flash. Now
Speaker 1: here's Amy Morris with Moore on what's going on around
Speaker 1: the world. Any good morning, Thank you, Karen, good morning.
Speaker 1: The White House is encouraging Americans to get their updated
Speaker 1: COVID nineteen backs seem to prevent the spread of the
Speaker 1: virus over the winter. White House COVID nineteen Response Coordinator
Speaker 1: doctor As she Jas says COVID cases and hospitalizations are
Speaker 1: on the rye across the country. Confidential data of about
Speaker 1: a hundred twelve thousand taxpayers inadvertently published by the I
Speaker 1: r S over the summer was mistakenly published again in
Speaker 1: late November, including names and contact information and sports the Caps,
Speaker 1: Bruins and Devils lose. The Rangers win. The World Cup
Speaker 1: final between Argentina and Frances Set for Sunday. Global News
Speaker 1: twenty four hours a day on errand on Bloomberg Quick Take,
Speaker 1: powered by more than twenty seven hundred journalists and analysts
Speaker 1: in more than one hundred twenty countries. I maybe Morris.
Speaker 1: This is Bloomberg, Nathan, Thanks Amy. It's five twenty three
Speaker 1: on Wall Street. Good morning. I'm Nathan Hagar. This is
Speaker 1: Bloomberg Daybreak on the morning. We're talking markets. It has
Speaker 1: been quite the week for the SMP five, sharp gains
Speaker 1: and losses tied to inflation data and the FED decision. Now,
Speaker 1: let's look at the path ahead with Bridgewater Associates co
Speaker 1: Chief investment officer Greg Jensen. He says to expect the
Speaker 1: downturn in the US and that it will last longer
Speaker 1: than previous recessions. Greg Jensen's worried the Fed maybe over
Speaker 1: tie name's he already had to say in a conversation
Speaker 1: with Bloomberg's Guy Johnson and Alex Steele. If China reopens successfully,
Speaker 1: how much of accounts weights is that to the down
Speaker 1: draft you're talking about in Weston markets. Well, in some
Speaker 1: ways it's helpful into certain countries, it will certainly be
Speaker 1: helpful UM and and we do think while the timing
Speaker 1: on that's unknown, it'll it'll be beneficial. Although it's worth
Speaker 1: noting that China did not do the type of balance
Speaker 1: sheet actions that US European policymakers did in the sense
Speaker 1: that UM Chinese small and medium businesses are coming out
Speaker 1: of this with much worse balance sheets than they had
Speaker 1: shut down these businesses. You've allowed them not to default
Speaker 1: on their debt, but you haven't forgiven the debt that's
Speaker 1: been piled up just to live while these business have
Speaker 1: been shut down. So you come out with much bigger
Speaker 1: overhanging China. But the other point I make is as
Speaker 1: China opens, this is not a great thing for the
Speaker 1: U For the U S and Europe. China has been
Speaker 1: a blessing in a sense to the U S and
Speaker 1: European and me because it's been such a disinflationary force
Speaker 1: into a global inflation. China opening and the effect that's
Speaker 1: gonna have on commodity prices and competing for a raw
Speaker 1: materials in the world while the US and Europe are
Speaker 1: entering recession will probably make the central banking dilemma worse
Speaker 1: and potentially draw down, particularly the countries that don't benefit
Speaker 1: as much from Chinese growth, um draw down those economies
Speaker 1: while China picks up. So this is not a great
Speaker 1: thing for the European and US economies, particularly the countries
Speaker 1: that don't have a tremendous amount of exports to China
Speaker 1: and and have monetary policy that is you know, has
Speaker 1: very significant inflation problems to begin with. You're seriously bumming
Speaker 1: me out. I want to go into my bed with
Speaker 1: suit cans and gold bars. So tell me what I'm
Speaker 1: supposed to go hide out in this? Why sit in
Speaker 1: cash for the next few years? Well, I think, first off,
Speaker 1: cash at you know, at these levels are is is competitive.
Speaker 1: You know that's gonna be one of the dilemmas, right,
Speaker 1: So this year you saw it as the interest rate
Speaker 1: has changed a lot, that the change had a big effect.
Speaker 1: Now the bigger deal is going to be the level difference. Right,
Speaker 1: The yield on cash is competitive with the yield and
Speaker 1: equity markets, with obviously the yielded bond markets. So I
Speaker 1: do think you're gonna see more people draw into cash,
Speaker 1: and it's not terrible at at those levels, it's a
Speaker 1: it's a pretty reasonable choice. Secondly, um, I do think
Speaker 1: we're at a turning point where the growth story is
Speaker 1: going to be the bigger deal. So while we do
Speaker 1: think inflation for a variety of reasons will lag and
Speaker 1: be staker and more of a problem than While the
Speaker 1: recent inflation reports are no big surprise, you're gonna get
Speaker 1: probably a mix of inflation reports going forward, and and
Speaker 1: so where do you hide. I mean, we do think
Speaker 1: inflation next bonds are attractive long term inflation has not
Speaker 1: been priced into markets, and if the economy we gets
Speaker 1: a lot, real yields will need to fall. So we
Speaker 1: think that's an area that's that's reasonable. And some of
Speaker 1: the emerging markets that haven't had the inflation problem, particularly
Speaker 1: that can benefit from the tail wind from China's they reopen.
Speaker 1: Those are the types of things where they're decent opportunities.
Speaker 1: But overall, it's not great out there, and cash is
Speaker 1: not a terrible seeing assets don't always go up. Even
Speaker 1: though we've had that, um, you know, we've had that
Speaker 1: feeling over the last decade. That's Bridgewater Associates co Chief
Speaker 1: investment Officer Greg Jensen speaking with Bloomberg's Guy Johnson and
Speaker 1: Alex Steel. You can catch more of that interview on
Speaker 1: Bloomberg dot com and on the Bloomberg Terminal. Assets are
Speaker 1: moving lower this morning. We have SMP futures down to
Speaker 1: fifty one points are one in the third percent down.
Speaker 1: Futures are lower by three undred ninety five points. That's
Speaker 1: a decline of one point two percent. NASTAC futures are
Speaker 1: lower by one point one percent or a hundred twenty
Speaker 1: five points. The tenure treasury is down thirteen thirty seconds,
Speaker 1: yield three point four nine percent. We've got this morning's
Speaker 1: top stories, local headlines, and a fuller check of markets
Speaker 1: straight ahead. First, let's get you your Bloomberg weekend weather forecast. Ramy,
Speaker 1: breezy day across the Tri State area will have temperatures
Speaker 1: between forty five and fifty the safternoon. The rain ends
Speaker 1: as a few showers during the evening. It'll start the
Speaker 1: clear overnight lows near thirty live in town, twenties for
Speaker 1: the suburbs. Sunshine and breezy Tomorrow, highest ranging from forty five.
Speaker 1: It will be mostly sunny colder Sunday, with a high
Speaker 1: of thirty five to your forty. I'm Rob Carolyn with
Speaker 1: your three day forecast on Bloomberg eleven three oh broadcasting
Speaker 1: live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg E Living Free to Washington, d C, Bloomberg one
Speaker 1: to Boston, Bloomberg one O six one to San Francisco,
Speaker 1: Bloomberg No. Six to the country, Sirius XM Cho one
Speaker 1: nine team, and around the globe, the Bloomberg Business app
Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Daybreak and
Speaker 1: it is coming up to five thirty on Wall Street.
Speaker 1: Good morning. I'm Karen Moscow, I'm Nathan Hagar. Bloomberg day
Speaker 1: Break is brought to you by se I. Imagine your
Speaker 1: asset management firms operational infrastructure as a competitive advantage. Let
Speaker 1: se I show you how at se I C dot
Speaker 1: M slash I M S. And we are nearly four
Speaker 1: hours away from the open of US trading. Let's get
Speaker 1: you up to date on the news you need to know.
Speaker 1: At this hour. US futures are lower as concerns and
Speaker 1: linger over Central Bank tightening. Only home builders, healthcare, and
Speaker 1: oil and gas companies posted gains in yesterday's session, and
Speaker 1: the energy sector could be poised for more outsized returns
Speaker 1: in the coming year. And as of you from Goldman
Speaker 1: Sacks headed a commodity research Jeff Curry returns, you know,
Speaker 1: so far we're headed towards somewhere around twenty three returns
Speaker 1: and in two. So this is a continuation of the
Speaker 1: strong returns that we've been seen over the last several years.
Speaker 1: Jeff Curry with Goldman Sacks believes commodities could be the
Speaker 1: best performing asset class next year. Well, global stocks, Karen,
Speaker 1: are headed for a weekly slide as the FED, the
Speaker 1: Bank of England, and the European Central Bank all dash
Speaker 1: hopes for more devilish policy. Megan Green, Global Chief economistic
Speaker 1: Crowle Institute says, despite the hawkish tone, inflation could prove sticky.
Speaker 1: I think the Fed is really considered that it will
Speaker 1: be stickier than the market seemed to be pricing in
Speaker 1: and I think that's reasonable. The big question is why
Speaker 1: the Fed didn't think that three months ago with their
Speaker 1: previous economic projections, And the Fed doesn't really clarify that.
Speaker 1: Megan Green with Cole Institute spoke on Bloomberg's Balance of
Speaker 1: Power with David Weston. You can catch a weekday's noon
Speaker 1: Eastern on Bloomberg Radio and Television. Well, turning to politics now,
Speaker 1: Nathan how, Speaker Nancy Pelosi and Senate Majority Leader Chuck
Speaker 1: Schumer are saying President Biden should run for re election
Speaker 1: in four The support pushes back against some Democrats, urging
Speaker 1: the party to elevate a younger generation of leaders, saying
Speaker 1: in d C. Congress is working on two bills to
Speaker 1: limit or ban the use of TikTok. Florida Senator Marco
Speaker 1: Rubio's bill would totally ban the social media app. He
Speaker 1: is very concerned about China's access to users private information. Well,
Speaker 1: turning to Twitter now, Nathan Elon Muski is making moves
Speaker 1: again to regulate content on the platform. Twitter is is
Speaker 1: spending me accounts as several journalists Bloomberg Steve Rappaport joins
Speaker 1: US Live with that story. Steve, good Morning, Good Morning, Karen,
Speaker 1: and Nathan Elon Musk suspended reporters from several outlets for
Speaker 1: posting real time locations of his private jet. Though tracking
Speaker 1: planes is available through public flight data. Musk says the
Speaker 1: accounts violated Twitter's policy on doxing, a term used for
Speaker 1: exposing private information. About someone to subject them to harassment.
Speaker 1: Musk tweeted reporters received a seven day time out, adding
Speaker 1: some time away from Twitter is good for the soul.
Speaker 1: Live in New York. I'm Steve Rapp report Bloomberg Bay Break. Okay, Steve, thanks.
Speaker 1: SMP futures down fifty two points, Style futures down three
Speaker 1: ninety nine. Now NASZAC futures are lower by a hundred
Speaker 1: twenty five points. The tenure treasury is down thirteen thirty seconds.
Speaker 1: You know three point four nine. I'm x scrudges down
Speaker 1: two point six percent at barrel. The euro is at
Speaker 1: one point zero six to five against the dollar. Local
Speaker 1: headlines and a check off sports up next. This is Bloomberg.
Speaker 1: It's five thirty one on Wall Street, and Amy Morris
Speaker 1: has more on what's going on in New York and
Speaker 1: around the world. Amy, Good morning. Nathan Annetiquette reporting its
Speaker 1: first pediatric death of the flu. Seasoned health officials say
Speaker 1: a child under the age of nine has passed away
Speaker 1: in New Haven County. Officials are urging everyone over the
Speaker 1: age of six months old to get a flu shot
Speaker 1: as soon as possible. This as health officials are worried
Speaker 1: about a COVID surge emerging in New York City. Epidemiologist
Speaker 1: Eric Fiegelding tells ABC masking is really only part of it.
Speaker 1: Masking is only one element of the total strategy to
Speaker 1: mitigate against COVID. There's also testing, which the White House
Speaker 1: has just announced UM free testing UM kids mailed to
Speaker 1: every address in America. Cases and hospitalizations are on the rise.
Speaker 1: After the Thanksgiving gatherings, the Senate passed a funding bill
Speaker 1: to keep the federal government operating for one more week.
Speaker 1: Senate Majority Leader Chuck Schumer says this gives lawmakers a
Speaker 1: little more time to pass a year long spending bill
Speaker 1: before they have to leave for their holiday break next week.
Speaker 1: Hopefully we'll finish the job passing a package that will
Speaker 1: keep the government been fully funded into next fall. The
Speaker 1: new deadline is December. A woman from Medicine, New Jersey,
Speaker 1: is among four people charged with providing financial assistance to
Speaker 1: Islamic State. Seema Rahman is charged with providing material support
Speaker 1: to a foreign terrorist organization. Authorities say she and three
Speaker 1: others used cryptocurrency, go fund me and PayPal to raise
Speaker 1: what they call blood money. Legislation prompted by Gabby Petito's
Speaker 1: murder is waiting for President Biden's signature. Parents of the
Speaker 1: New York Native are backing the Help Find the Missing Act,
Speaker 1: which requires information on missing people to be entered into
Speaker 1: the FBI's internal database then shared with the Department of Justice.
Speaker 1: Under state law in New York is already required to
Speaker 1: share information on the missing, but New Jersey and Connecticut
Speaker 1: or not. Global News twenty four hours a day on
Speaker 1: errand on Bloomberg quick Take, powered by more than twenty
Speaker 1: seven hundred journalists and analysts and more than one hundred
Speaker 1: twenty countries. I'm anymore is this is Bloomberg? Nathan? Thanks
Speaker 1: five three on Wall Street time for the Bloomberg Sports Update,
Speaker 1: brought to you by Try State Out. He Here's John's
Speaker 1: all right, Nathan. So many teams have been shelling out
Speaker 1: so much money, and the Yankees did commit three hundred
Speaker 1: and sixty million dollars, but they already had Aaron Judge.
Speaker 1: The Yanks had not added any one of real significance,
Speaker 1: and now they had Carlos rodon Z r. A. Each
Speaker 1: of the last two seasons was under three thirty year
Speaker 1: old left. He comes to the Yanks with a six
Speaker 1: year hundred and sixty two million dollar deal. Radon, once
Speaker 1: the fourth overall pick of the two thousand fourteen draft
Speaker 1: by the White Sox, spent this past season with the Giants.
Speaker 1: He could be facing them in his Yankee debut. That's
Speaker 1: who the Yanks open three season against. Nixon. Rangers have
Speaker 1: both now won five games in a row. Nick's bring
Speaker 1: that streak into a game tonight in Chicago, where they
Speaker 1: won it overtime just two nights ago. Rangers last night
Speaker 1: beat Toronto three one at the Garden, and three of
Speaker 1: the five wins in the Street, Rangers allowed only one goal.
Speaker 1: As for the Devils, they went a span of over
Speaker 1: seven weeks, losing only three times. They've now dropped four
Speaker 1: games in the past week, beaten by Philadelphia to to
Speaker 1: one Eve, though the Devil's outshot the Flyers forty nine
Speaker 1: the four. Brock Purdy, the NFL's only undefeated quarterback, last
Speaker 1: player taking in the draft. He's gone from third string
Speaker 1: to first his first ever road game to thirteen victory
Speaker 1: at Seattle. That's the niners seventh win in a row.
Speaker 1: They clinched the NFC West during the wind streak. They're
Speaker 1: allowing only eleven points a games. Seahawks slump continues. That
Speaker 1: helps the Giants in their quest to make the playoffs.
Speaker 1: There's an NFL triple header tomorrow and then Sunday Jets
Speaker 1: home for Red Hot Detroit. Sunday Night, the Giants visit Washington.
Speaker 1: John Stasher, Bloomberg Sports, Nathan Okay, John stash Our, thank
Speaker 1: you for that. The Bloomberg Sports Report was brought to
Speaker 1: you by Autie. Don't let someone else drive off in
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Speaker 1: Wall Street. Want to keep you up to date on
Speaker 1: what's happening on the roads. There's a bad crash north
Speaker 1: found New Jersey Turnpike ahead of exit thirteen. Several lanes closed.
Speaker 1: This is because there was a deadly accident involving a
Speaker 1: tanker fuel truck, so expect significant delays again northbound Turnpike
Speaker 1: before exit thirteen. It's now time for the Tri State
Speaker 1: Business Report. Here's Bloomberg's a cory. The state of New
Speaker 1: York is banning pet stores from selling dogs, cats, and rabbits.
Speaker 1: A new law taking effect at the end of four
Speaker 1: is meant to prevent the sale of animals raised by
Speaker 1: commercial breeders accused of keeping them in inhumane conditions. A
Speaker 1: group of apartments at Mercedes House, a luxury residential and
Speaker 1: retail complex on Manhattan's West Side, is in contract to
Speaker 1: sell for a little more than one hundred million dollars,
Speaker 1: sources tell Bloomberg. Empire Capital Holdings is buying the one
Speaker 1: hundred sixty two rental units. Investco acquire the units years
Speaker 1: ago for one hundred seventy million dollars. A New York
Speaker 1: based developer known for a luxury apartment complexes and formerly
Speaker 1: owning the hotel Chelsea is betting on Miami's recent boom.
Speaker 1: Should Treat Group is expanding it's Miami Presidents is The
Speaker 1: company seeks to start sales next year or to three
Speaker 1: hundred seventy eight unit condominium tower in that city. That
Speaker 1: your Bloomberg drs Dague business report. I'm d Corey. Thanks
Speaker 1: said it's coming up to five thirty seven on Wall Street.
Speaker 1: The following is an editorial from Bloomberg Opinion. This editorial
Speaker 1: was written by the Bloomberg Editorial Board for all the
Speaker 1: acrimonies surrounding immigration. Americans generally support two goals, giving undocumented
Speaker 1: immigrants brought to the US as children a pathway to
Speaker 1: legal status and securing the border. With only days left
Speaker 1: in the current Congress, lawmakers have an opportunity to deliver
Speaker 1: a breakthrough on both priorities. A proposal by Senators Tom
Speaker 1: Tillis and Kirsen Cinema would provide a path to citizenship
Speaker 1: for some two million undocumented immigrants known as dreamers, who
Speaker 1: have lived in the US for much of their lives.
Speaker 1: It would also extend a rule that allows for the
Speaker 1: expedited removal of border crossers for at least a year.
Speaker 1: The framework produces solid winds for each party at the
Speaker 1: same time. Either side gets everything it wants. That's the
Speaker 1: sign of a good compromise, and Congress should get it done.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. For
Speaker 1: more Bloomberg opinion, please go to Bloomberg dot com, slash
Speaker 1: opinion or O P I N go on the Bloomberg terminal.
Speaker 1: This has been Bloomberg opinion, and you can hear Bloomberg
Speaker 1: opinion editorials every weekday. At this time, terminal customers can
Speaker 1: read more at O P I N GO. We're coming
Speaker 1: up to on Wall Street now. SMP futures are down
Speaker 1: forty eight points, Stown futures down three seventy one and
Speaker 1: Nasdaq futures on the decline by a hundred thirteen points.
Speaker 1: We're gonna get much more on this market. Sell off
Speaker 1: straight ahead. Our investors pricing in a threat of recession.
Speaker 1: Tracy McMillian, head of Global Asset at Wells Fargo, joins us. Next,
Speaker 1: this is Bloomberg Live from the Bloomberg Interactive Burger Studios.
Speaker 1: This is Bloomberg day Break for Friday, December six. Coming
Speaker 1: up this hour, Uncertainty in markets over fed, tightening concerns.
Speaker 1: Democratic leaders track a Biden run in a crackdown on
Speaker 1: TikTok games, steam in congress, and Twitter suspends some accounts
Speaker 1: covering Elon Musk. I'm Amy Morris. New York City is
Speaker 1: cracking down on unlicensed cannabis products, while the state is
Speaker 1: prohibiting pet stores from selling cats and dogs. I'm John
Speaker 1: stash Hour Sports. The Yankees have signed free agent picture
Speaker 1: Carlos Braddon the Rangers, one of the Devil's Lost One
Speaker 1: in Seattle. That's all s Train ahead on Bloomberg Daybreak
Speaker 1: on Bloomberg eleven Free on New York, Bloomberg nine one,
Speaker 1: Washington d C, Bloomberg one oh six one, Boston, Bloomberg
Speaker 1: nine sixties, San Francisco, Sirius x M one nine team,
Speaker 1: and around the world on Bloomberg Radio dot com and
Speaker 1: via the Bloomberg Business App. Good morning, I'm Nathan Hagar
Speaker 1: and I'm Karen Moscow, US knock Indise. Futures are following
Speaker 1: this morning. We checked the markets all day long here
Speaker 1: on Bloomberg Radio and SMP. Futures are down about four
Speaker 1: e two points this morning. Down futures down three fifteen.
Speaker 1: That's down about nine tenths of uppercent. NASDAG future is
Speaker 1: down about one percent or one hundred nine points. The
Speaker 1: decks in Germany's down seven tenths of upper cent ten.
Speaker 1: Your treasury down ten thirty seconds, you know, three point
Speaker 1: for eight percent and a yield on the two year
Speaker 1: four point to five percent. Nathan Karin. This morning's drop
Speaker 1: in futures comes with concern over Central Bank tightening. The
Speaker 1: SNP slid two and a half percent yesterday. Only home builders, healthcare,
Speaker 1: and oil and gas companies posted gains. The commodity space
Speaker 1: could be set up for more gains in the new year.
Speaker 1: That's the view from Goldman Sachs, head of Commodity Research
Speaker 1: Jeff Curry. What happens when China, the largest commodity consumer
Speaker 1: in the world, the largest oil and border in the world,
Speaker 1: begins to rebound significantly in the first part of next year,
Speaker 1: It's going to tighten all these markets tremendously and put
Speaker 1: a lot of upward pressure on prices in Jeff Kerry,
Speaker 1: Goldman Sachs thinks commodities will be the best performing asset
Speaker 1: class of global stocks. Meantime, nathan are headed for a
Speaker 1: weekly slide. Is the FED, Bank of England and European
Speaker 1: Central Bank dash hopes for more devish policy making. Green
Speaker 1: Global chief Economistic Cruel Institute says central banks and markets
Speaker 1: seem to be working against each other. The Fed is
Speaker 1: effectively saying we're really serious guys to the markets, and
Speaker 1: the markets keep trying to call their bluff. I think
Speaker 1: both hoping that infletion will come down faster, but also
Speaker 1: expecting a recession at some point in the middle of
Speaker 1: the year, and questioning how strong the feds res al
Speaker 1: really is to continue keeping policy tight making Grain with
Speaker 1: Cruel Institute made a comments on Bloomberg's balance of power
Speaker 1: with David weston Catch the Show weekdays at noon Eastern
Speaker 1: on Bloomberg Radio and Television. Well in Asia overnight care
Speaker 1: in the market sentiment was risk off as well in
Speaker 1: reaction to the week central bank moves. Bloomberg Daybreak Asia
Speaker 1: anchor Brian Curtis has more from Hong Kong. Asian stocks
Speaker 1: traded mixed to lower as investors wrestled with Hawkey Central Banks.
Speaker 1: Shares in Hong Kong and Maitland. China reversed early losses
Speaker 1: while US futures were relatively stable. The threat of US
Speaker 1: delisting ease for about two hundred companies from Hong Kong
Speaker 1: and China, and that aided sentiment, and China pledge to
Speaker 1: implement new measures for the property sector. Brian Curtis Spoomberg
Speaker 1: Radio Right, Brian, thanks so. Turning to politics now, top
Speaker 1: Democrats and Congress are backing Joe Biden and four How's figger.
Speaker 1: Nancy Pelosi and sent A Majority leader Chuck Schumer both
Speaker 1: tell CNN that President Biden should run for re election,
Speaker 1: even as some Democrats urged the party to elevate a
Speaker 1: younger generation of leaders. Is a person with a great
Speaker 1: vision for our country. He's been involved for a long time,
Speaker 1: so his great knowledge of the issues and the challenges
Speaker 1: we face. In an interview on CNN, Pelosi said Biden
Speaker 1: has been a great president, and Schumer added heat support
Speaker 1: Biden all the way. Staying indec Karen, Congress appears to
Speaker 1: be getting impatient with security concerns over China's influence on TikTok.
Speaker 1: Bloomberg said Baxter has more on that story. Congress is
Speaker 1: working on two bills that would limit or ban the
Speaker 1: use of TikTok in the US. The first is the
Speaker 1: one that passed the Senate this week, banning the use
Speaker 1: of the platform on government owned mobile phones. House Speaker
Speaker 1: Nancy Pelosi says she doesn't know if the House can
Speaker 1: get to it this session. The second is Marco Rubio's
Speaker 1: bill that would totally ban the website. Rubio says he
Speaker 1: is very concerned about China's control and access to users
Speaker 1: private information. The move to do something is definitely picked
Speaker 1: up steam in San Francisco. I'm at Baxter Bloomberg Daybreak
Speaker 1: alreat and thanks so returning to Twitter now Elon Musk
Speaker 1: is making moves again to regulate content on the platform.
Speaker 1: Twitter is now suspending the accounts of several journalists Bloomberg
Speaker 1: Steve Rappaport joins us live at that story. See good morning,
Speaker 1: Good morning, Karen and Nathan. People in the news business
Speaker 1: made the news when Twitter blocked accounts of reporters from
Speaker 1: The New York Times, The Washington Post, then other outlets.
Speaker 1: Elon Musk says they were denied access for tracking private jets,
Speaker 1: including his must describe sharing that information as basically assassination coordinates,
Speaker 1: even though his jet can be tracked by using publicly
Speaker 1: available flight data. The Twitter boss then conducted a poll
Speaker 1: asking users when he should reinstate those accounts who disclosed
Speaker 1: his exact location, the majority voting to remove the bands immediately,
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve. Thanks.
Speaker 1: We have more news from one of Elon Musk's other companies, Tesla.
Speaker 1: A day after he sold more shares, Tesla announced it's
Speaker 1: ramping up suv production at its factory in Austin, Texas.
Speaker 1: That story from Bloomberg's Charlie Pellett. It's a sign that
Speaker 1: the electric carmaker is making up for lost time at
Speaker 1: the money losing plant. Tesla shared the new production number
Speaker 1: in a tweet. The milestone comes a week after Bloomberg
Speaker 1: News report of the CEO Elon Musk, had asked the
Speaker 1: head of the company's China division to get the Austin
Speaker 1: factory up to speed. Extrapolated out over a year, that
Speaker 1: production rate would get Tesla to about one hundred fifty
Speaker 1: six thousand vehicles, which is still short of the annual
Speaker 1: target of two hundred fifty thousand, but the company promoted
Speaker 1: in its third quarter letter to shareholders in New York.
Speaker 1: Charlie Pellott Bloomberg day Break, All right, Charlie, thank you.
Speaker 1: A more news out of the Bahamas on disgraced ft
Speaker 1: X founder Sam Bank been freed after a judge denied
Speaker 1: a request for bail. The former CEO made a new
Speaker 1: bail application before the Bahamas Supreme Court, as according to Reuter's.
Speaker 1: Local media reports say the bail application is said to
Speaker 1: be heard in mid January, and futures are following this morning.
Speaker 1: S and P futures down one percent down forty one
Speaker 1: points down. Futures are down three hundred points or nine
Speaker 1: tenths of a percent, and NASDAC futures down a hundred
Speaker 1: three points are also nine tenths of a percent. Straight
Speaker 1: ahead your latest local headlines, plus a check of sports,
Speaker 1: and this is Bloomberg. I think you, Karen. It is
Speaker 1: uh forty two degrees rainy in Central Park. We expect
Speaker 1: the rain to continue through the day. It's going to
Speaker 1: breezy with high sneer fifty degrees. It will turn partly
Speaker 1: cloudy overnight though as the rain ends, as showers flows
Speaker 1: in the mid thirties. Time not it will take a
Speaker 1: look at some of the other stories making news in
Speaker 1: New York and around the world. For that way, You're
Speaker 1: joined by Bloomberg's Amy Morris. Good morning, Amy, Good morning, Nathan.
Speaker 1: New York City cracking down on illegal, unlicensed cannabis products.
Speaker 1: Authorities have seized more than one hundred thousand items worth
Speaker 1: more than four million dollars in an effort to clear
Speaker 1: the way for licensed vendors as the state tries to
Speaker 1: legalize and tax the marijuana market. COVID cases, hospitalizations, and
Speaker 1: deaths are all on the rise after Thanksgiving gatherings. Epidemiologist
Speaker 1: Eric Fengel Dane tells ABC that the biggest jump is
Speaker 1: in New York City. New York City is seeing the
Speaker 1: fastest surge of cases. They're not just high transmission, but
Speaker 1: they're all UH. They're also at high community levels and
Speaker 1: wastewater surging. Also in New York City. Dr Figel Dane
Speaker 1: recommends you wear a mask on public transit or when
Speaker 1: you're in public. The Senate has past a one week
Speaker 1: government funding bill intended to avert a Saturday shutdown. Senate
Speaker 1: Majority Leader Chuck Schumer says the extension will let lawmakers
Speaker 1: finish negotiations for next year's spending. No drama, no gridlock,
Speaker 1: no government shutdown this week. It's a win for the
Speaker 1: American people. The bill gives negotiators until December twenty three
Speaker 1: to hash out agreements on the roughly one point seven
Speaker 1: trillion dollar fiscal spending package. The state of New York
Speaker 1: is banning pet stores from selling dogs, cats, and rabbits.
Speaker 1: Pet stores fought against this bill, arguing it would effectively
Speaker 1: put them out of business. The New York Times reports
Speaker 1: the aim is to stop these so called puppy mill pipeline.
Speaker 1: The band takes effect at the end of as the
Speaker 1: U S Africa Leaders Summit comes to a close. Secretary
Speaker 1: of State Anthony B. Lincoln reaffirmed the US commitment to
Speaker 1: providing aid for African nations impacted by famine and war.
Speaker 1: Much of this assistance has gone to African countries which
Speaker 1: have been disproportionately impacted by the drivers of hunger, COVID
Speaker 1: climate and conflicts, and by President Putin's warren Ukraine, which
Speaker 1: has made a serious crisis much worse. Lincoln says the
Speaker 1: United States has provided more than eleven billion dollars in
Speaker 1: the past year to address global hunger and improve nutrition.
Speaker 1: Global News twenty four hours a day on air end
Speaker 1: on Bloomberg Quickdake, powered by more than twenty seven hundred
Speaker 1: journalists and analysts in more than one hundred twenty countries.
Speaker 1: I'm Amy Morris. This is Bloomberg Nathan. Okay, Amy, Thanks.
Speaker 1: I'm now for a Bloomberg Sports update, brought to you
Speaker 1: by Tri stayed Out. A good morning, John stennshop your morning, Nathan.
Speaker 1: The Yankees have now checked off the first two items
Speaker 1: on their off season to do list. Number one, keep
Speaker 1: Aaron Judge. Number two was at a quality starting pitcher,
Speaker 1: and they've now done that with the edition of Carlos
Speaker 1: raddan thirty year old left He gets a six year
Speaker 1: deal hundred and sixty two million. He's been at All
Speaker 1: Star twice the last two seasons, first with the White
Speaker 1: Sox in this passion with the Giants, his e r
Speaker 1: A was under three. Next on the Yankee shopping list,
Speaker 1: could be an outfielder at the Garden. Rangers scored once
Speaker 1: in each period, the last two by Jimmy VC. They
Speaker 1: made it five wins in a row, three one over
Speaker 1: Toronto and Newark. The Devil's gonna early go from jack
Speaker 1: Us to his sixteenth, but Philadelphia got forty eight season.
Speaker 1: Carter Hart and the Flyers won two to one, and
Speaker 1: that's the Devil's fourth loss in a row. The Nicks,
Speaker 1: who one Wednesday at Chicago, play there again tonight. Nicks
Speaker 1: have won their last five nets are winners, are four straight,
Speaker 1: eight of nine, and they're in Toronto. Steph Curry won't
Speaker 1: play for Golden State in Philadelphia. He's gonna miss a
Speaker 1: few weeks with an injured shoulder, and with him, the
Speaker 1: Warriors are under five hundred forty. Niners stay red hot.
Speaker 1: Their seventh win in a row. It came in Seattle
Speaker 1: comes lap throws down the sideline wide at George Kettle,
Speaker 1: thirty twenty cuts, sit side, ten cut, sit side again,
Speaker 1: tops down. Said sisters came to our fifty four yard
Speaker 1: or second of two touchdown hookups between the rookie Brock
Speaker 1: Purdy and George Kittle. The Niners one one, thirteen, they've
Speaker 1: clinched the NFC West Seahawks have lost four or five.
Speaker 1: That helps the Giants who are in contention with Seattle
Speaker 1: to the last two NFC playoff spots. Washington part of
Speaker 1: that battle. Giants go there on Sunday night. Jos the
Speaker 1: actual our Bloomberg Sports. All right, John, thank you. Bloomberg
Speaker 1: Sports was brought to you by Audie. Don't let someone
Speaker 1: else drive off in the Audi model you've always wanted.
Speaker 1: Visit your local price state Audi dealer to get behind
Speaker 1: the wheel of yours today, or visit Autie offers dot
Speaker 1: com for more information. On the road this morning, be
Speaker 1: on the lookout for a bad crash northbound New Jersey
Speaker 1: Turnpike just before exit thirteen. We're hearing his number of
Speaker 1: lanes are closed. It's because of a deadly accident involving
Speaker 1: a tanker fuel truck so if you're headed that way,
Speaker 1: expect significant delays. Again. It's on the northbound Turnpike ahead
Speaker 1: of exit thirteen in New Jersey. Live from coast to coast,
Speaker 1: from New York to San Francisco, Boston to Washington, d C.
Speaker 1: Nationwide on Sirius, SIMP, the Bloomberg Business app, and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hagar.
Speaker 1: Want to get right to this market now as we
Speaker 1: end a very volatile week following some hawkish rhetoric from
Speaker 1: central banks around the world. We are joined live this
Speaker 1: morning by Jeffrey You, senior strategist at b n y Melon. Jeff,
Speaker 1: it's good to speak with you this morning. Is this
Speaker 1: a market that's starting to come to grips with the
Speaker 1: idea that central banks mean what they say when they
Speaker 1: say that rates are going to stay higher for longer, Well,
Speaker 1: it's about time to right now. This has been within
Speaker 1: our expectations, you know, throughout you know, in our Year Ahead,
Speaker 1: we are highlighted that that said the part would be high,
Speaker 1: not extremely high, but high as in five percent at
Speaker 1: least some bucks for longer and stressing up a longer
Speaker 1: side of things. Because I'm the FED. Once real rates higher, uh,
Speaker 1: and if inflation is going to be stubborn, you know,
Speaker 1: than rates the real rates and cannot come off and
Speaker 1: with just relying on the non moordinar side and alone, right,
Speaker 1: so you need to to push the envelope on the
Speaker 1: non north side. And were with the ECB and and
Speaker 1: I was saying, they say the economy is in a
Speaker 1: better place, so you know, demanded them. They're both on
Speaker 1: domestic side of things. And you know from the international
Speaker 1: you know, push especially of China, the opening in that
Speaker 1: benefits to the Eurozone as well. So if the inflation
Speaker 1: risks to the upside, then you know, why not keep
Speaker 1: great them higher for longer? And I think the ECB
Speaker 1: markets adjusting higher terminal rates as well. You know, that
Speaker 1: was something that's unexpected and would also highlight way three
Speaker 1: months or four months, and the POJ might join the
Speaker 1: fray as well. So is recession fear replacing inflation fear
Speaker 1: as the bigger risk for this market? On the contrary, right,
Speaker 1: And at this point is really really clear here, I
Speaker 1: think central banks are actually more hawkish because they are
Speaker 1: less worried about recession. Markets need to get their sequencing right.
Speaker 1: It's because economies have been so resilient such as that
Speaker 1: central banks are willing to push the envelopes a bit. Right.
Speaker 1: The central banks have said and in the past now
Speaker 1: that some pain is needed, of course, but you know,
Speaker 1: they're not going to destroy the economy or anything, you know,
Speaker 1: and like that. It's just in short, there's a lid
Speaker 1: on demand. That because in the U S side the
Speaker 1: labor market strong and in Eurozone we've had strong fiscal
Speaker 1: support um that demand um easing has not come at
Speaker 1: strong enopper pace. So in the central banks feel comfortable
Speaker 1: pushing things forward a bit, I mean evenly a Bank
Speaker 1: of England for example, and I think they're making a
Speaker 1: policy area here, and they're pointing to the fact that
Speaker 1: demand has been a bit more resilient than expected, and
Speaker 1: looking at the data today, you know, probably does less
Speaker 1: the case in the UK compares to the Eurozone and
Speaker 1: in the US. But it's the fact that economies are
Speaker 1: stronger than expected which is allowing central banks to do
Speaker 1: what they're doing, rather than suddenly thinking, oh, central banks
Speaker 1: are pushing for a recession. You know, those sequence is
Speaker 1: completely wrong. So how do you read the new Summary
Speaker 1: of Economic Predictions? From the Federal Reserve. Then they're calling
Speaker 1: for higher unemployment into the next year or so it is.
Speaker 1: Is that more of a rhetorical move by the Federal
Speaker 1: Reserve or could we see the labor market start to crack? Um. So,
Speaker 1: I don't want to be over dramatic about this, but
Speaker 1: the labor market growth is going to slow, right, So
Speaker 1: we need to look at the first derivative universities the
Speaker 1: second derivative, right, because standards are so high right now,
Speaker 1: because the labor market has been hot in many economies
Speaker 1: around the world. Right when things begin to slow, that's
Speaker 1: what we're looking for, that inflection point when growth starts
Speaker 1: to slow, not cracking, not suddenly unemployment and rising aggressively
Speaker 1: or anything like that. So first you go employment, so um,
Speaker 1: employment growth slows and then maybe unemployment is going to
Speaker 1: start to rise. The maps and natural progression of the
Speaker 1: slowdown that's needed, that is part of the cycle. So
Speaker 1: again going back to my first point, now that so
Speaker 1: some pain so to speak, in the which in share
Speaker 1: Powell and others than have them highlighted. Governor Bailias highlighted
Speaker 1: as well that natural parts of the process where the
Speaker 1: labor market is less hot and then inflation comes back
Speaker 1: to target. But as the dot plots have them indicated,
Speaker 1: and you need to be consistent here. Once we get
Speaker 1: labor market down towards of normalized levels, then you no
Speaker 1: longer need restrictive rates, right, then rates can start to
Speaker 1: come down. Right. It's just we're not there yet. Uh.
Speaker 1: And this new regime we're in, I just still think
Speaker 1: the markets are still getting used to when you know,
Speaker 1: after over a decade of in a relatively use monetary policy.
Speaker 1: So in our last minute here, Jeff, what is the
Speaker 1: trajectory for markets into the new year with more central
Speaker 1: bank tightening to come? Um So, in the market are
Speaker 1: going to be mixed? Um So, a lot of will
Speaker 1: the hinge on? So you know where central banks and
Speaker 1: end up of course, so you know that's where we
Speaker 1: start on the defensive. No, No, the war is going
Speaker 1: to play a role, but also in a China reopening
Speaker 1: is going to play a role as well. And I
Speaker 1: think on that note, a lot of experty markets globally,
Speaker 1: you know, could benefit in Asia, you know, in Europe
Speaker 1: and of the service detector, and also in the industrial
Speaker 1: sector in the US on the margins in a mine,
Speaker 1: as for example, you know they start in competitive We've
Speaker 1: had reports today of China starting to purchase something the
Speaker 1: iron ale and bolt them as well. So those things
Speaker 1: that could be positive at Central banks will start lean
Speaker 1: against it. But I don't think they're going to crack
Speaker 1: the Columny or Crashlade markets or anything like that. So difficult,
Speaker 1: but because position is so light, there will be opportunities happen.
Speaker 1: Thanks so much for this, Jeff great as always to
Speaker 1: get your thoughts Jeffrey Mellon or Jeffrey you, I should
Speaker 1: say it works for b n Y Melon as the
Speaker 1: senior strategist again. Thanks Jeffer. Joining us here this morning
Speaker 1: on Bloomberg Daybreak, as we continue to watch markets move lower,
Speaker 1: SMP futures now down one point two percent to drop
Speaker 1: a forty seven points. STOW futures are lower by three
Speaker 1: hundred fifty six points. That's the decline of one point
Speaker 1: one percent. NASDAC futures down one percent or a hundred
Speaker 1: fifteen points. This is Bloomberg