WEBVTT - Bloomberg Daybreak: December 20, 2022 - Hour 1 (Radio) 0:00:01.280 --> 0:00:04.560 Live from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:04.640 --> 0:00:08.360 day Break for Tuesday, December two. Coming up this hour, 0:00:08.560 --> 0:00:12.080 the Bank of Japan shocks markets with a big policy pivot. 0:00:12.119 --> 0:00:16.320 In January six, committee recommends severe punishment for former President Trump. 0:00:16.400 --> 0:00:18.919 F t X co founder Sam Bankman Freed could be 0:00:19.000 --> 0:00:21.840 on his way home from the Bahamas, and Twitter turmoil 0:00:21.920 --> 0:00:25.280 continues after Elon must stay silent over his role at 0:00:25.280 --> 0:00:28.880 the company. Los Angeles jury finds disgraced movie mogul Harvey 0:00:28.880 --> 0:00:32.279 Weinstein guilty of break plus protesters target a New York 0:00:32.320 --> 0:00:36.320 councilman for supporting drag Story Hour. I'm Michael laugh More Ahead, 0:00:36.360 --> 0:00:38.920 I'm John stash Our Sports. The Factors beat the Rams. 0:00:38.920 --> 0:00:41.199 The Islanders got shot out the Red Hot Necks. So 0:00:41.280 --> 0:00:46.520 it's Golden State tonight. That's all's training. Ahead on Bloomberg 0:00:46.560 --> 0:00:51.680 day Break on Bloomberg eleven, Free on New York, Bloomberg one, Washington, 0:00:51.760 --> 0:00:55.920 d C, Bloomberg one, O six one, Boston, Bloomberg nine sixties, 0:00:55.920 --> 0:00:59.680 San Francisco, Sirius x M one nine Team, and around 0:00:59.680 --> 0:01:02.400 the world. Old on Bloomberg Radio dot Com and via 0:01:02.480 --> 0:01:09.480 the Bloomberg Business op Good morning. I'm Nathan Hagar and 0:01:09.520 --> 0:01:12.360 I'm Karen Moscow. Any US dock index futures are a 0:01:12.400 --> 0:01:14.800 little change this morning. We checked the markets all day 0:01:14.840 --> 0:01:17.760 long here on Bloomberg Radio. Right now, SNP futures are 0:01:17.840 --> 0:01:20.679 again little change. Down futures are as well, and as 0:01:20.760 --> 0:01:23.000 DAG futures are lower, down a quarter per cent or 0:01:23.080 --> 0:01:26.319 twenty nine points. That Dacks in Germany's down a third percent. 0:01:26.640 --> 0:01:29.240 Ten year treasury down twenty thirty seconds, you know, three 0:01:29.240 --> 0:01:32.000 point six five percent. Nathan here, and we begin this 0:01:32.040 --> 0:01:34.920 morning overseas with the banka je of Hans sparking big 0:01:34.959 --> 0:01:37.880 market moves. This morning. In a hawk is shift bo 0:01:37.959 --> 0:01:41.480 j Governor Harohico Corona doubled a camp on tenure yields, 0:01:41.720 --> 0:01:45.720 paving the way for possible policy normalization under a new governor. 0:01:46.040 --> 0:01:49.680 The yen has strengthened sharply in response, while government bonds 0:01:49.680 --> 0:01:52.160 are slumping. The Bank of Japan is building the move 0:01:52.200 --> 0:01:55.520 as a way to enhance monetary easing, but Blue Bay 0:01:55.520 --> 0:01:58.880 Asset Management portfolio manager Russell Matthew says it could be 0:01:58.960 --> 0:02:01.960 the start of an exit it from stimulus policy. Do 0:02:02.000 --> 0:02:04.400 you think that this is just an isolated move? Absolutely 0:02:04.400 --> 0:02:08.280 not this is the beginning of normalization. They've been increasingly 0:02:08.960 --> 0:02:12.679 struggling to hold um uh, you know, the the the 0:02:13.080 --> 0:02:16.799 the their hard policy mix, the emergency policy mix that 0:02:16.800 --> 0:02:19.600 that that's now sort of changed and we're on the 0:02:19.760 --> 0:02:22.919 we're on the pathway to normalization um and the market 0:02:23.000 --> 0:02:24.960 is going to be pretty volatile as we progress along 0:02:25.000 --> 0:02:27.600 that path. Russell Matthews along with others at Blue they 0:02:27.639 --> 0:02:29.919 have long predicted the b o j's hockey is shift 0:02:29.919 --> 0:02:31.440 and taking a look at the end right now it 0:02:31.560 --> 0:02:33.600 is stronger by three and a half percent against the 0:02:33.639 --> 0:02:37.040 dollar at one thirty two point to four. While Nathan 0:02:37.040 --> 0:02:40.000 Trading in Asia Pacific overnight was dominated by the bo 0:02:40.120 --> 0:02:42.800 J news and we get the recount from Bloomberg's Annabel 0:02:43.000 --> 0:02:45.480 Rulers in Sydney. What policy makers are now going to 0:02:45.520 --> 0:02:48.240 allow is the ten year yield to reach point five 0:02:48.320 --> 0:02:51.160 percent on its trading band that had previously been set 0:02:51.160 --> 0:02:53.840 the upper limited point to five percent. So a huge 0:02:53.960 --> 0:02:58.000 change for US yields moving higher. Stocks slumping across the board, 0:02:58.000 --> 0:03:00.560 particular in these sectors that are more sensitive two rising 0:03:00.639 --> 0:03:04.840 yields like property tex stalks. Financials though absolutely jumping with 0:03:04.880 --> 0:03:07.519 the likes of Mitsubishi UFJ. That's a huge lender there 0:03:07.520 --> 0:03:10.960 in Japan, rising by the most in six years. Otherwise, 0:03:10.960 --> 0:03:13.320 the major story markets today is what's happening in China. 0:03:13.400 --> 0:03:16.240 We are continuing to monitor that COVID outbreak there. We 0:03:16.280 --> 0:03:18.400 did see the c s I three hundred trading in 0:03:18.440 --> 0:03:23.160 the red in Sydney. I'm Annabel Druler's Wimbo daybreak. All right, Annabel, thanks, 0:03:23.240 --> 0:03:26.120 Let's stay overseas for another story out of Asia. Social 0:03:26.160 --> 0:03:29.480 media posts in China signal COVID deaths may be much 0:03:29.560 --> 0:03:33.400 higher than Beijing's official count, and now Beijing is confirming 0:03:33.440 --> 0:03:37.200 it has changed the method for counting COVID fatalities, narrowing 0:03:37.280 --> 0:03:41.920 the definition. China reported just five deaths tied to COVID today, 0:03:42.320 --> 0:03:45.200 but bonn yeelds across the globe are rising this morning, Nathan, 0:03:45.200 --> 0:03:47.640 thanks to that policy shift from the Bank of Japan. 0:03:47.800 --> 0:03:50.760 US stock indix futures are a little changed after four days. 0:03:50.760 --> 0:03:54.520 A loss is initially propelled by hawkish rhetoric from the FED. 0:03:54.800 --> 0:03:57.880 Optimism about a policy pivot could finally be waning, but 0:03:57.960 --> 0:04:00.880 if not, in stocks push higher. Former New York Fan 0:04:00.960 --> 0:04:03.880 president Bill Dudley says that could lead to more tightening. 0:04:04.280 --> 0:04:06.600 The market thinks that the Federal blank, what's the unemployer 0:04:06.680 --> 0:04:09.240 rates starts going up to the market is basically saying 0:04:09.240 --> 0:04:11.000 that the FIT doesn't mean what it says. That they're 0:04:11.000 --> 0:04:13.160 saying this to try to talk tough, but when the 0:04:13.440 --> 0:04:16.360 going gets difficult, the Fed will fold. I don't believe that. 0:04:16.400 --> 0:04:18.320 I think Paul's going to do what he says. And 0:04:18.400 --> 0:04:21.520 former New York Fed governor and Bloomberg opinion columnist Bill 0:04:21.600 --> 0:04:24.719 Dudley made the comments on Bloomberg Surveillance. Catch the program 0:04:24.720 --> 0:04:28.159 weekday morning jan Bloomberg Radio and Television, or subscribe to 0:04:28.200 --> 0:04:32.200 the Daily Bloomberg Surveillance podcast on Apples, Spotify, and anywhere 0:04:32.200 --> 0:04:35.280 else you get your podcasts. Let's start to politics now, Karen, 0:04:35.320 --> 0:04:38.000 because we have some major developments in the US centered 0:04:38.040 --> 0:04:40.760 on Donald Trump. A House committee has recommended the former 0:04:40.800 --> 0:04:44.280 president be prosecuted for his role in the January six 0:04:44.320 --> 0:04:47.040 assault on the US capital. Now. This marks the first 0:04:47.160 --> 0:04:50.279 ever such referral for a former president after a seventeen 0:04:50.279 --> 0:04:54.880 month investigation. Democratic Maryland Congressman Jamie Raskin says the former 0:04:54.920 --> 0:04:58.760 president would be disqualified from holding office if convicted. The 0:04:58.800 --> 0:05:03.320 committee has developed significant evidence that President Trump intended to 0:05:03.560 --> 0:05:09.040 disrupt the peaceful transfer transition of power under our constitution. 0:05:09.240 --> 0:05:12.800 Marilyn Congressman Jamie Raskin says former President Trump failed in 0:05:12.920 --> 0:05:17.320 his constitutional duty while turning from politics to crypto Now Nathan, 0:05:17.320 --> 0:05:19.719 it was a wild day in court for former ft 0:05:19.920 --> 0:05:23.159 X CEO Sam Bankman Freed, who could now be headed 0:05:23.160 --> 0:05:26.040 back to the US sooner than we thought. Bloomberg. Steve 0:05:26.120 --> 0:05:28.719 Rappaport joins US Live with that story. Stave, good morning, 0:05:28.839 --> 0:05:31.640 Good morning, Karen, and Nathan. Mixed messages were the order 0:05:31.680 --> 0:05:33.919 of the day, with Bankman Freed and his attorney not 0:05:34.120 --> 0:05:36.920 exactly on the same page. SPF said in court he 0:05:36.960 --> 0:05:39.000 was ready to face the music in the US, but 0:05:39.040 --> 0:05:41.240 at the same hearing, his local lawyer said he was 0:05:41.279 --> 0:05:43.840 unaware of the plan. Later in the day, Jeron Roberts 0:05:43.839 --> 0:05:47.040 appear to reverse himself, telling reporters Bankman Freed would not 0:05:47.120 --> 0:05:49.760 fight extradition to the US, where he faces charges of 0:05:49.760 --> 0:05:52.760 fraud over the sudden collapse of f t X. Last week, 0:05:52.800 --> 0:05:55.600 Bankman Freed said he planned to fight extradition. Sources tell 0:05:55.640 --> 0:05:58.080 Bloomberg the change of heart is in part motivated by 0:05:58.080 --> 0:06:00.320 the expectation that he will be able to get bail 0:06:00.400 --> 0:06:02.960 here in the US. Live in New York. I'm Steve Rappaport, 0:06:03.040 --> 0:06:05.560 Bloomberg Daybreak. All right, Steve, Thanks, And it wouldn't be 0:06:05.600 --> 0:06:07.559 a day in December if we didn't have more news 0:06:07.680 --> 0:06:10.640 on Twitter. The latest development has Elon Musk saying the 0:06:10.680 --> 0:06:14.360 company will now vote on Twitter policy matters and leave 0:06:14.360 --> 0:06:18.599 it only to Blue members. Bloomberg said Baxter has the story. 0:06:18.960 --> 0:06:22.240 This coming after fifty seven percent of the respondence to 0:06:22.320 --> 0:06:25.200 his poll about whether he should step down said yes. 0:06:25.880 --> 0:06:28.679 Musk does say that this was in response to somebody 0:06:28.680 --> 0:06:32.080 who had messaged him earlier in the day. Now there 0:06:32.080 --> 0:06:35.599 were more than ten million votes saying that he should 0:06:35.640 --> 0:06:39.440 relinquish his role. Musk also tweeted that nobody wanted his 0:06:39.560 --> 0:06:43.440 job and that it would be impossible to find a successor, 0:06:43.560 --> 0:06:47.479 although he didn't directly address whether he was going to 0:06:47.800 --> 0:06:53.960 step down. In San Francisco, I'm at Baxter Bloomberg Daybreak, Okay, ed, thanks, futures, 0:06:54.000 --> 0:06:56.960 little change this morning, straight ahead, your latest local headlines 0:06:56.960 --> 0:07:03.520 in the check of sports. This is Bloomberg and it 0:07:03.680 --> 0:07:07.039 is now thirty two degrees in Central Park. We have 0:07:07.120 --> 0:07:09.080 a look at some of the other stories making news 0:07:09.120 --> 0:07:11.800 in New York and around the world. Now with bloomberg 0:07:11.880 --> 0:07:14.520 S Michael bar Good Morning, Michael, Good Morning, Nathan. Los 0:07:14.560 --> 0:07:18.640 Angeles jurors found disgrace movie mogul Harvey Weinstein guilty of 0:07:18.760 --> 0:07:22.280 rape and sexual assault of one of the four accusers 0:07:22.320 --> 0:07:26.120 he was charged with abusing. Weinstein was found guilty involving 0:07:26.120 --> 0:07:29.600 a woman who said he appeared uninvited at her hotel 0:07:29.720 --> 0:07:34.440 room door during a Los Angeles film festival in Weinstein, 0:07:34.520 --> 0:07:37.560 who was two years into a twenty three year sentence 0:07:37.640 --> 0:07:40.720 for a rape and sexual assault conviction in New York, 0:07:41.040 --> 0:07:43.720 to get up to twenty four years in prison in California. 0:07:43.760 --> 0:07:47.240 When he sentenced. New York Council member Eric Bacher was 0:07:47.360 --> 0:07:51.440 targeted by a group that calls itself Gaze against Groomer's. 0:07:51.840 --> 0:07:55.400 Bacher says, over the weekend they protested outside the Drag 0:07:55.560 --> 0:07:59.080 Story Hour, in which a person in drag reads children's 0:07:59.120 --> 0:08:02.880 books to kids at public library. It's a very successful 0:08:02.920 --> 0:08:07.920 and popular program around the country. Unfortunately, on the Internet 0:08:08.400 --> 0:08:14.520 there are these very dark and unhinged of memes that 0:08:15.040 --> 0:08:17.880 really have convinced some of these people that children are 0:08:17.920 --> 0:08:22.560 being sexually groomed, says. Two of the protesters made it 0:08:22.600 --> 0:08:25.880 as far as the lobby inside his apartment building after 0:08:25.920 --> 0:08:29.320 scrolling anti gay slurs on the sidewalk in front. They 0:08:29.360 --> 0:08:33.040 were arrested for trespassing. The NYPD says a thirty year 0:08:33.040 --> 0:08:36.160 old woman is under arrest after police say she broke 0:08:36.200 --> 0:08:39.479 into actor Robert de Niro's home while he was inside. 0:08:40.000 --> 0:08:43.480 Police say she was stealing his Christmas gifts. The suspect, 0:08:43.679 --> 0:08:48.000 Shanie Amlis, has twenty six prior arrests and was known 0:08:48.040 --> 0:08:51.160 to police so much so they spotted her in the 0:08:51.280 --> 0:08:55.040 area on Manhattan's Upper east Side and began to follow her, 0:08:55.080 --> 0:08:58.920 allegedly trying to break into other homes. A dedication ceremony 0:08:59.000 --> 0:09:01.280 was held in Central Park for a group of black 0:09:01.280 --> 0:09:04.840 and Hispanic men who became known as the Central Park Five. 0:09:05.440 --> 0:09:08.240 An entrance to the park was renamed as the Gate 0:09:08.520 --> 0:09:11.480 of the Exhonerated in honor of the five men wrongly 0:09:11.520 --> 0:09:15.000 convicted for attack and a rave in the park. New 0:09:15.080 --> 0:09:17.599 York Mayor Eric Adams said the location will be a 0:09:17.720 --> 0:09:21.320 landmark in civil rights history. We should be haveing school 0:09:21.360 --> 0:09:24.920 trips to talk about this story. The men were cleared 0:09:24.920 --> 0:09:27.120 in two thousand two and received a forty one million 0:09:27.120 --> 0:09:30.199 dollars settlement from the city. Globally is twenty four hours 0:09:30.200 --> 0:09:33.000 a day on air and on Bloomberg Quick Take, powered 0:09:33.040 --> 0:09:35.800 by more than twenty seven hundred journalists and analysts more 0:09:35.800 --> 0:09:39.280 than a hundred twenty countries. Michael Barr and this is Bloomberg. Nathan. 0:09:39.320 --> 0:09:46.480 All right, Michael, thanks the time of the Bloomberg Sports Utday, 0:09:46.480 --> 0:09:48.160 brought to you by Tri State Outing. For that, we 0:09:48.240 --> 0:09:50.720 bring in John's stash our. Good morning, John, Good morning, 0:09:50.760 --> 0:09:53.600 Nathan Nixon. Rangers have both won seven in a row. 0:09:53.720 --> 0:09:56.000 Look to keep the streets going tonight at the Garden. 0:09:56.040 --> 0:09:58.440 It's the Knicks and the Warriors, always a hot ticket 0:09:58.480 --> 0:10:00.920 when Golden State comes in. Although no Steph Curry and 0:10:00.920 --> 0:10:04.199 the Warriors are under five hundred. The Rangers play in Pittsburgh. 0:10:04.240 --> 0:10:07.240 Islanders were in Colorado, scoreless through sixty five minutes and 0:10:07.240 --> 0:10:09.679 then only one goal scoring in the shootout. The Ads 0:10:09.720 --> 0:10:13.360 won one nothing. Isles got forties six days from Helios Rokin, 0:10:13.400 --> 0:10:15.560 but they've now lost four of their last five. Rams 0:10:15.559 --> 0:10:17.599 and Packers figured to be two of the best of 0:10:17.640 --> 0:10:20.440 the NFC this year. They are certainly not Green Bay 0:10:20.440 --> 0:10:23.280 and fifteen degree weather one of four to twelve, and 0:10:23.320 --> 0:10:25.800 the Rams with their tent lost Hie the record for 0:10:25.880 --> 0:10:29.280 most defeats by defending Super Bowl champions. Short work week 0:10:29.320 --> 0:10:32.040 for the Jets. They host Jacksonville on Thursday. Of Mike 0:10:32.040 --> 0:10:35.320 White can play hill be Zack Wilson against the Jaguars 0:10:35.320 --> 0:10:38.240 Trevor Lawrence. They were the first two picks of draft. 0:10:38.320 --> 0:10:42.120 Lawrence has been playing great for Jacksonville. Wilson returned Sunday 0:10:42.200 --> 0:10:44.440 due to whites injury. He wasn't quite as bad as 0:10:44.440 --> 0:10:46.800 he was before he got bens, but certainly made some mistakes. 0:10:47.240 --> 0:10:50.120 His coaches Robert Salah, this kid's gonna be a good quarterback. 0:10:50.600 --> 0:10:54.400 Um there the the NFL and this this new instant 0:10:54.440 --> 0:10:56.560 coffee world that we're in just does not want to 0:10:56.559 --> 0:11:00.000 give people time and uh and so we look at 0:11:00.120 --> 0:11:03.160 him and he is just nitpicked with it and just 0:11:03.480 --> 0:11:05.600 with a fine tooth column. Everything that he does pretty 0:11:05.640 --> 0:11:07.520 much must win for the Jets Thursday if they hope 0:11:07.559 --> 0:11:09.760 to make the playoffs and City FI, the Mets introduced 0:11:09.800 --> 0:11:13.320 their new Japanese import code I singa set Lugo puts 0:11:13.360 --> 0:11:15.240 out of the Mets bullpen in the past seven years. 0:11:15.240 --> 0:11:17.800 He has signed with San Diego, Tom Brownie and pitch 0:11:17.880 --> 0:11:20.200 for Cincinnati for eleven years. Once through, a perfect game 0:11:20.520 --> 0:11:23.800 has passed away at sixty two, John Stashward, Bloomberg Sports. 0:11:24.320 --> 0:11:26.360 All right, John, Thanks, Bloomberg Sports is brought to you 0:11:26.360 --> 0:11:28.400 by Autie. Don't let someone else drive off in the 0:11:28.400 --> 0:11:31.200 outye model you've always wanted. Visit your local tri state 0:11:31.240 --> 0:11:33.800 autie dealer to get behind the wheel of yours today, 0:11:33.920 --> 0:11:37.360 or visit autie Offers dot com for more information. Expecting 0:11:37.400 --> 0:11:40.439 sunshine today with hr forty degrees cleared, a partly cloudy 0:11:40.520 --> 0:11:42.319 to night, up for twenties for overnight lows, and we'll 0:11:42.320 --> 0:11:46.480 be back near forty in the sunshine tomorrow. Right now 0:11:46.679 --> 0:11:50.440 in Central Park, it is clear and thirty two degrees. 0:11:51.080 --> 0:11:53.880 SMP futures down four points, Staff futures up for and 0:11:53.960 --> 0:11:57.199 Nasdaq futures are lower by thirty points ten. Your treasury 0:11:57.240 --> 0:12:03.680 yield right now three point six five percent. Live from 0:12:03.760 --> 0:12:07.000 coast to coast, from New York to San Francisco, Boston 0:12:07.080 --> 0:12:10.439 to Washington, d C. Nationwide on Sirius, x amp, the 0:12:10.520 --> 0:12:15.120 Bloomberg Business App, and Bloomberg dot Com. This is Bloomberg Daybreak. 0:12:16.559 --> 0:12:19.560 Good morning. I'm Nathan Hagar. We continue to watch the 0:12:19.720 --> 0:12:24.080 yen this morning, surging by three point three percent against 0:12:24.080 --> 0:12:27.800 the dollar one thirty two point five three as markets 0:12:27.880 --> 0:12:31.520 continue to assess this surprise move by outgoing Bank of 0:12:31.600 --> 0:12:36.000 Japan Governor Harohiko Coroda to adjust the yield curve control 0:12:36.120 --> 0:12:40.280 policy for the Central Bank in Japan, doubling the cap 0:12:40.360 --> 0:12:44.240 on tenure yields from a quarter percent to a half percent. 0:12:44.720 --> 0:12:48.520 Joining us now with more analysis is Kit Jukes, the 0:12:48.679 --> 0:12:53.319 chief Effex strategist associate A general. Kit. It's great to 0:12:53.360 --> 0:12:57.320 speak with you this morning. What was your reaction to 0:12:57.480 --> 0:13:00.839 this move and should the market b as surprised as 0:13:00.840 --> 0:13:04.360 it seems to be. I'm going to go with wow 0:13:04.600 --> 0:13:07.640 was my reaction? I think to be honest, Um, yeah, 0:13:07.640 --> 0:13:08.959 I think that we thought they were going to do 0:13:09.040 --> 0:13:12.680 something like this in April at the end of Mr 0:13:12.760 --> 0:13:16.280 Coroda's terms, So yeah, four months early, just before Christmas. 0:13:16.320 --> 0:13:20.440 Quite markets, it's got to move. Um So yeah, And 0:13:21.559 --> 0:13:24.640 you know, I think you have to at least, you know, 0:13:24.760 --> 0:13:27.360 put it in the context that that they've been completely 0:13:27.400 --> 0:13:31.240 alone really in their in their monetary policy stance through 0:13:31.400 --> 0:13:35.520 through this crisis or through this year. The widening interest 0:13:35.600 --> 0:13:37.959 rate differential with the United States. The rise in usc 0:13:38.040 --> 0:13:41.120 els has seen dolly Yan rise from hundred and ten 0:13:41.200 --> 0:13:43.679 to a hundred and fifty UM. There's a long way 0:13:43.720 --> 0:13:45.840 to go about the other way, you know, if you 0:13:45.880 --> 0:13:48.439 signal that that's all going to slowly start to unwind. Now, 0:13:48.640 --> 0:13:51.240 of course it wasn't all unwind. But but if we 0:13:51.280 --> 0:13:53.120 look through at the future from here and we say 0:13:53.240 --> 0:13:56.480 normalization of Japanese policy, you know, the end of the 0:13:56.480 --> 0:13:59.040 FED hiking cycle, not a million miles away from where 0:13:59.080 --> 0:14:01.679 we are, you can look at dolly in and think, yeah, 0:14:02.200 --> 0:14:04.520 it could go down a lot lower than this over 0:14:05.400 --> 0:14:08.520 the medium longer term, and and yeah, so we're going 0:14:08.559 --> 0:14:10.400 to do too much on the first day, And the 0:14:10.720 --> 0:14:12.920 Bank of Japan will will stress the fact that this 0:14:13.000 --> 0:14:15.720 is being done for the orderly function of the bond market, 0:14:15.760 --> 0:14:18.480 which doesn't function in an orderly fashion at all at 0:14:18.480 --> 0:14:21.280 the moment, and isn't really intended to be an easier 0:14:21.280 --> 0:14:24.400 tightening in monetary policy. But I'm not sure we'll hear 0:14:24.400 --> 0:14:26.800 any of that. I wouldn't be surprised if it if 0:14:26.800 --> 0:14:29.680 it goes further than this. Yeah, as you say, Corona 0:14:29.760 --> 0:14:32.560 did say that this was about improving bond market functioning. 0:14:32.720 --> 0:14:35.680 Not necessarily a policy pivot, but do you see this 0:14:36.040 --> 0:14:38.880 as a first step toward a policy normalization from the 0:14:38.880 --> 0:14:41.960 BOJ Not in a quick step, but I see there's 0:14:41.960 --> 0:14:44.760 a tightening in monetary conditions, and I think that's what matters. 0:14:44.840 --> 0:14:49.600 I don't think that it's um you know, it's not 0:14:49.720 --> 0:14:52.120 certainly not, you know, I think if let's bring this way, 0:14:52.320 --> 0:14:53.760 if I thought that we were going to see this 0:14:53.800 --> 0:14:55.520 in April, I don't think this means I'm going to 0:14:55.560 --> 0:14:57.400 see another one in April. I think this is April's 0:14:57.440 --> 0:14:59.520 one now, if you like. In terms of a policy mood, 0:14:59.560 --> 0:15:01.400 so it's not part of a chain. But I think 0:15:01.440 --> 0:15:03.920 it's the monetary conditions that do matter. You're tightening those 0:15:03.960 --> 0:15:06.960 and and you're raising interest rate levels that people can 0:15:07.000 --> 0:15:10.560 earn um. So you know, the sectors of the sectors 0:15:10.560 --> 0:15:12.480 of the economy that don't like higher interest threads are 0:15:12.480 --> 0:15:13.840 going to feel it in the same way as they 0:15:13.880 --> 0:15:16.480 would here. You know, it's sort of it smells and 0:15:16.520 --> 0:15:18.320 sounds like you know, like like like a like a 0:15:18.360 --> 0:15:20.120 red height wood in the United States or the UK, 0:15:20.280 --> 0:15:22.560 and so i'll call it that in Japan, I think 0:15:22.720 --> 0:15:27.120 for now it's also a catalyst for me. It's important 0:15:27.160 --> 0:15:31.640 for the currency market because, um, you know, the Japanese 0:15:31.640 --> 0:15:33.680 are the biggest holders of foreign assets in the world, 0:15:33.800 --> 0:15:35.760 and so they hold any enormal number of foreign assets 0:15:35.840 --> 0:15:38.120 and they've made very done, very well out of them 0:15:38.120 --> 0:15:41.520 in this period of yen weakness. It's very hard not 0:15:41.600 --> 0:15:44.560 to see this as a signal to them hedge that 0:15:44.800 --> 0:15:47.680 fex risk and if they're heading that effets risk there 0:15:48.000 --> 0:15:52.120 de facto buying yen and they'll make it get stronger. 0:15:52.200 --> 0:15:54.680 So you know that that to me is the bit. 0:15:54.760 --> 0:15:57.320 This smells and sounds and feels and looks like monetary 0:15:57.320 --> 0:15:59.760 tightening whatever you want to call it. It tightens finale 0:15:59.760 --> 0:16:03.120 a mount conditions. Um. And it's probably you know, yen 0:16:03.240 --> 0:16:06.480 positive for the medium term, not just for today. Does 0:16:06.720 --> 0:16:11.600 that add further two dollar negative then yeah, it feeds 0:16:11.600 --> 0:16:14.600 into the whole pattern. I mean, I think again when 0:16:14.600 --> 0:16:18.120 the last standout puts raises not in policy rates, but 0:16:18.120 --> 0:16:20.520 but it's it's yield, it's yield target at which it 0:16:20.520 --> 0:16:23.160 will intervene in the bond market. Um. And the Fed 0:16:23.360 --> 0:16:25.920 you know, is going to slow in February. We most 0:16:26.080 --> 0:16:28.320 people expect at twenty five basis point hike and then 0:16:28.320 --> 0:16:31.840 we'll see how many of those we get. Very very 0:16:31.920 --> 0:16:35.840 hard not to see that, as you know, further nail 0:16:35.840 --> 0:16:38.760 in the coffin of the of this really incredible period 0:16:38.800 --> 0:16:41.640 of dollars strains, the second biggest or or the biggest 0:16:41.720 --> 0:16:46.160 dollar rally since the one that ended in February. So 0:16:46.200 --> 0:16:48.560 we got about thirty seconds left here, Kit, we're staring 0:16:48.600 --> 0:16:51.680 at one two for the end right now. How much 0:16:51.720 --> 0:16:55.400 further does the end go down? It came from one ten. 0:16:55.880 --> 0:16:57.480 I mean I think you know, I think you can 0:16:57.480 --> 0:17:00.200 get some one and twenty in six months time. Ways 0:17:00.240 --> 0:17:03.480 that the end has form of overshooting targets that I 0:17:03.520 --> 0:17:06.840 put down as forecasts when it has these most this 0:17:06.880 --> 0:17:09.880 is the fifth one it's done since the mid nineties, 0:17:09.960 --> 0:17:12.880 and they were all bigger than this. The Christians great 0:17:12.880 --> 0:17:14.720 to have you on with this, kid, especially after a 0:17:14.720 --> 0:17:18.160 move like this. Really appreciate your insights, Kid Jukes, Chief 0:17:18.200 --> 0:17:21.880 f X strategist associate A general. I imagine we're gonna 0:17:21.880 --> 0:17:24.320 be keeping it our on the end for some time 0:17:24.400 --> 0:17:27.560 here right now, stronger against the dollar by just about 0:17:27.600 --> 0:17:30.840 three point three percent, training at one thirty two point 0:17:30.840 --> 0:17:35.080 five seven. As for other g ten currencies. The Euro 0:17:35.240 --> 0:17:37.600 right now at one point zero six to seven against 0:17:37.640 --> 0:17:41.280 the dollar, British pound one point to one three eight 0:17:42.000 --> 0:17:46.040 futures little change to lower right now. SMP futures are 0:17:46.080 --> 0:17:50.080 down seven points, Staff futures down seventeen and NASDAC futures 0:17:50.080 --> 0:17:53.880 are lower by thirty nine points. Tenure treasury down twenty 0:17:53.960 --> 0:17:56.639 one thirty seconds. Yield on the tenure in the US 0:17:56.720 --> 0:18:03.159 three point six six percent. This is Bloomberg Markets, headlines 0:18:03.200 --> 0:18:06.160 and breaking news twenty four hours a day at Bloomberg 0:18:06.240 --> 0:18:09.560 dot Com, the Bloomberg Business and at Bloomberg Quick Take. 0:18:09.840 --> 0:18:19.080 This is a Bloomberg Business lash and I'm Karen Moscow 0:18:19.080 --> 0:18:22.520 Treasury yields rising, Global equities falling after the Bank of 0:18:22.600 --> 0:18:25.960 Japan emulated as central bank piers with a hankish move 0:18:26.000 --> 0:18:28.000 that lifted the end to its highest in more than 0:18:28.000 --> 0:18:31.760 four months and sent domestic bonn yields twenty basis points higher. 0:18:31.960 --> 0:18:34.080 We check the markets all day long here on Bloomberg. 0:18:34.160 --> 0:18:37.200 SMP futures there are down five points now down about 0:18:37.200 --> 0:18:39.400 a tenth of uppercent. Down futures are a little changed. 0:18:39.720 --> 0:18:42.240 NASTACK futures down three tenths of upper cent or thirty 0:18:42.240 --> 0:18:44.960 three points. The decks in Germany's down a half pert 0:18:45.240 --> 0:18:47.479 down about a quarter percent. I should say ten your 0:18:47.520 --> 0:18:49.919 treasury down twenty one thirty seconds. Heel three point six 0:18:49.960 --> 0:18:52.000 six percent. They yield on the two year four point 0:18:52.000 --> 0:18:54.679 to seven percent. NI Max Screwed oil is at one 0:18:54.720 --> 0:18:56.879 point one percent of seventy nine cents at seventy five 0:18:57.640 --> 0:19:00.280 cents of barrel comic school of one percent or eighteen 0:19:00.280 --> 0:19:03.639 dollar sixty cents at eighteen sixteen thirty announced the euro 0:19:03.760 --> 0:19:06.119 one point six to eight against the dollar, British found 0:19:06.119 --> 0:19:08.920 one point one four one, the yen one thirty two 0:19:08.960 --> 0:19:12.600 point four seven and bitcoin this morning at one it's 0:19:12.640 --> 0:19:15.760 at sixteen thousand, eight hundred dollars. And as a Bloomberg 0:19:15.760 --> 0:19:18.320 Business flash, now here's Michael bar with Moore on what's 0:19:18.320 --> 0:19:21.000 going on around the world. Muncale, good morning, Good morning, Karen. 0:19:21.000 --> 0:19:24.119 A House committee recommended that Donald Trump he prosecuted for 0:19:24.240 --> 0:19:27.400 his role in the January sixth assault on the US capital, 0:19:27.680 --> 0:19:31.600 the first ever such referral of a former president. Representative 0:19:31.720 --> 0:19:34.600 Jamie Raskin said it would disqualify Trump from holding off 0:19:34.640 --> 0:19:38.200 as if convicted. The Supreme Court granted a temporary stay 0:19:38.280 --> 0:19:41.760 on the immigration restriction known as Title forty two. It 0:19:42.000 --> 0:19:46.480 was expiring tomorrow. The nineteen Republican led States filed an appeal. 0:19:47.000 --> 0:19:50.639 Monday night football, the Packers beat the Rams twelve in 0:19:50.680 --> 0:19:53.399 the NHL. The Islanders lost in a shootout to the 0:19:53.440 --> 0:19:57.240 Avalanche one ZIP. The Capitols and Bruins were winners. Global 0:19:57.280 --> 0:19:59.760 News twenty four hours a day on air and on 0:20:00.000 --> 0:20:03.160 Boomberg Quick Tank, powered by more than twenty seven under 0:20:03.200 --> 0:20:05.960 journalists and analyst more than a hundred twenty countries. I'm 0:20:06.000 --> 0:20:08.920 Michael Barr, and this is Bloomberg. Nathan him Michael. Thanks. 0:20:08.920 --> 0:20:11.280 It's five twenty three on Wall Street. I'm Nathan Hagar. 0:20:11.400 --> 0:20:14.639 This is Bloomberg Daybreak, and our focus this morning is 0:20:14.680 --> 0:20:17.320 sharply on the Bank of Japan. But that doesn't mean 0:20:17.359 --> 0:20:20.800 we're taking our eyes off the Federal Reserve. FED policy 0:20:20.840 --> 0:20:24.479 and conjecture about future policy have largely shaped the direction 0:20:24.520 --> 0:20:26.879 of markets over this past week. Now, let's get the 0:20:26.960 --> 0:20:29.960 view from a former Central Bank member. Bill Dudley served 0:20:30.000 --> 0:20:33.280 as president of the New York Fed for nearly a decade. Now, 0:20:33.320 --> 0:20:36.520 he's a professor at Princeton and a columnist for Bloomberg Opinion. 0:20:36.720 --> 0:20:40.360 Dudley sat down with Bloomberg's Tom Keene and Lisa Abramowitz 0:20:40.400 --> 0:20:43.240 on Bloomberg Surveillance to take stock of the Fed's latest 0:20:43.240 --> 0:20:46.040 move and what's ahead for the new year. Let's listen 0:20:46.040 --> 0:20:49.720 in what does the data point of January twelve, the 0:20:49.800 --> 0:20:54.320 inflation reports signal to the Fed where possibly they will 0:20:54.359 --> 0:20:59.320 have three data points lined up marking some form of disinflation. 0:21:00.400 --> 0:21:03.000 All have been very clear that to chief success he 0:21:03.080 --> 0:21:06.520 needs to see moderation of goods prices, which he is seeing, 0:21:07.280 --> 0:21:11.720 moderation of services prices excluding housing, which he's not seeing, 0:21:12.240 --> 0:21:14.600 and more slack in the labor market which he's not seeing. 0:21:14.640 --> 0:21:17.479 So the only achieved one of the three goals. So 0:21:17.520 --> 0:21:19.480 the thing to focus on is what's happening to the 0:21:19.520 --> 0:21:22.480 services inflation excluding housing that we know housing is going 0:21:22.560 --> 0:21:24.800 to come down with a lag, And what's happening in 0:21:24.800 --> 0:21:27.000 the labor market. You know we have you know, less 0:21:27.000 --> 0:21:31.119 player employment increase. We need to see payeral games of 0:21:31.440 --> 0:21:34.600 fifty thousand, seventy five a month. We need to see 0:21:34.760 --> 0:21:37.280