Speaker 1: Live from the Bloomberg Interactive Burgers Studios. This is Bloomberg
Speaker 1: day Break for Wednesday, December fourteen, twenty two. Coming up
Speaker 1: this hour, the FED makes its final policy decision of
Speaker 1: the year, with a fifty basis point hike expected UK
Speaker 1: inflation dips from out forty one year high you head
Speaker 1: of tomorrow's Bank of England decision. F t X co
Speaker 1: founder Sam Bankman Freed plans to fight extradition to the US,
Speaker 1: and the US plans to add more than thirty Chinese
Speaker 1: companies to its trade blacklist Hi maybe more as a
Speaker 1: three alarm fire at a police evidence warehouse may burn
Speaker 1: for days. Flags or half staff. Remembering Sandy Hook ten
Speaker 1: years ago, I'm John stashtown Swards, another big baseball free
Speaker 1: agent signing. The Islanders and Devil's both lost the World
Speaker 1: Cup semifinals in today. That's alls Training ahead on Bloomberg
Speaker 1: day Break on Bloomberg eleven three on New York, Bloomberg
Speaker 1: N one, Washington, d C, Bloomberg one O six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius XM one nine team
Speaker 1: and around the world Old on Bloomberg Radio dot Com
Speaker 1: and via the Bloomberg Business app. Good morning, I'm Nathan
Speaker 1: Hagar and I'm Karen Moscow, US not Index futures are
Speaker 1: a little change this morning six o one on Wall Street,
Speaker 1: and we check the markets all day long year on
Speaker 1: Bloomberg Radio. S and P futures that will change. So
Speaker 1: are down futures now. Zack Future is moving lower now
Speaker 1: down about a tenth of upper cent or seventeen points.
Speaker 1: The decks in Germany is down three quarters of a percent.
Speaker 1: The ten year treasury up one thirty second deal three
Speaker 1: point four and nine percent, and they yield on the
Speaker 1: two year four point one eight percent, Nathan Karen. A
Speaker 1: big week for critical economic events continues today with the
Speaker 1: Federal Reserve's final policy decision of the year. Let's get
Speaker 1: our coverage started with a preview from Bloomberg Economics correspondent
Speaker 1: Michael McKee. Fed officials are going to raise the nation's
Speaker 1: bench park lending rate by half a percentage point today.
Speaker 1: The question is what will they do next? After two
Speaker 1: consecutive soft CPI reports, investors are lowering their bets on
Speaker 1: how high the Fed goes and for how long. That
Speaker 1: puts the focus on policymakers. New economic and interest rate forecasts,
Speaker 1: and the so called dot plot that shows where they
Speaker 1: think rates will need to be at the end of
Speaker 1: next year. In September, the media dot was at four
Speaker 1: point six markets now see them at four point three
Speaker 1: percent after rate cuts beginning in July. Investors will also
Speaker 1: focus on how Chair j. Pal sees the data and
Speaker 1: the outlook. Will he again warn against overconfidence on Wall Street?
Speaker 1: Michael McKee Bloomberg Daybreak. All right, Mike, thank you well
Speaker 1: after today. The feds next steps depend on the path
Speaker 1: of economic data, so says influential economist and Stanford University
Speaker 1: professor John Taylor. If it's fifty basis points uh at
Speaker 1: this decision, then don't lead on a twenty five or
Speaker 1: seventy five or another fifty. It depends, you know, the
Speaker 1: idea of Monterrey policies. It depends on what's happening to inflation.
Speaker 1: What's happened to real h o'connory. We hope we don't
Speaker 1: have another downturn and and we can avoid that if
Speaker 1: in fact, that says, look, if inflation picks up, we
Speaker 1: will take action. Stanford professor John Taylor made the comments
Speaker 1: in an interview with Bloomberg's Kathleen Hey. Stay tuned for
Speaker 1: complete coverage of today's fan decision on a special edition
Speaker 1: of Bloomberg Surveillance. It all begins at one thir pm
Speaker 1: All Street time on Bloomberg Radio and Television, Karen. The
Speaker 1: FED decision comes after a key gauge of consumer prices
Speaker 1: posted its smallest gain in more than a year, and
Speaker 1: that fueled the surgeon stocks. At yesterday's opening bell, the
Speaker 1: SMP five hundred rows as much as two point eight
Speaker 1: percent before pairing those gains to close higher by three
Speaker 1: quarters of a percent. Garge Chowdry is Black Rock's head
Speaker 1: of Ice Shares investment strategy. Policy is working everything that
Speaker 1: the FED has been doing, as difficult as that has
Speaker 1: been for the markets. What the inflation data today shows
Speaker 1: us that it is it is going in the right
Speaker 1: direction black Rocks. Garg Choudry notes, overall CPI increased one
Speaker 1: percent from the prior month, bringing inflation to an annual
Speaker 1: rate of seven point one percent. Well, inflation is also
Speaker 1: a front end center in the UK, Nathan, with fresh
Speaker 1: data out of tomorrow us a Bank of England decision
Speaker 1: and we go to London and get the latest or
Speaker 1: the Bloomberg's Human Parts. Good morning Huan, Good morning Karen Nathan.
Speaker 1: Another of the world's biggest economies is seeing a softening
Speaker 1: of inflation. Consumer prices in the UK rose ten point
Speaker 1: seven percent in November from a year earlier. That was
Speaker 1: down from eleven point one percent in the previous month
Speaker 1: and lower than forecasts. The data will be studied by
Speaker 1: the Bank of England ahead of their rate decision tomorrow,
Speaker 1: but with inflation more than five times over targets, no
Speaker 1: one is yet calling victory in this particular battle in London.
Speaker 1: I'm you and parts in Big Daybreak, are you in Thanks.
Speaker 1: Let's turn now to the latest developments on Sam Bankman free.
Speaker 1: The FTX co founder apparently plans to fight extradition to
Speaker 1: the US and Bloomberg Steve Rappaport is live with the details.
Speaker 1: Good morning Steve, Good morning Nathan and Karen. Bringing Sam
Speaker 1: Bankman freed home from the Caribbean might require help from
Speaker 1: across the pond. The Bahamas is a British Commonwealth country
Speaker 1: and final appeals on extradition are handled by London's Privy Council,
Speaker 1: a formal body of advisors to the Sovereign of the UK.
Speaker 1: While announcing the charges, Federal Process cuter Damian Williams had
Speaker 1: a warning for anyone who may have helped Bankman Freed.
Speaker 1: I would strongly encourage you to come see us before
Speaker 1: we come see you. And if history is an indicator,
Speaker 1: Bankmn Freed may have bought plenty of time. Eight men
Speaker 1: facing drug charges in the US fought extradition from the
Speaker 1: Bahamas for more than a decade. Live in New York,
Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thanks well.
Speaker 1: Another run of hearings on the ft X collapse is
Speaker 1: coming up today in the Senate. New f t X
Speaker 1: CEO John Ray testified yesterday before the House Financial Services Committee.
Speaker 1: Republican Committee member Andy Barr joined us to give his
Speaker 1: takeaway on the hearing. There was absolute concentration of control
Speaker 1: of this business, in these various businesses, in the hands
Speaker 1: of a very small group of in his in his words,
Speaker 1: grossly inexperienced and unsophisticated individuals. We also spoke by Democratic
Speaker 1: Committee member Brad Sherman, who says Sam Bankman Freed's downfall
Speaker 1: points to a need for more crypto regulation. When you're
Speaker 1: dealing with an enterprise, purpose of which is to come
Speaker 1: up with a currency system that allows you to evade
Speaker 1: American financial law. Then you're going to be dealing with
Speaker 1: people who are going to evade American financial law. Corgresson,
Speaker 1: Brad Sherman, and Andy Barr both were guests on Bloomberg
Speaker 1: Sound On with Joe Matthew. Catch the program Like Davis
Speaker 1: at five pm Eastern on Bloomberg Radio. Now, let's turn
Speaker 1: to some geopolitical news this morning. Karen, we're seeing rising
Speaker 1: tensions again between the world's two economic superpowers, the Biden
Speaker 1: administrations putting China's leading maker of memory chips and more
Speaker 1: than thirty other companies on its trade blacklist that would
Speaker 1: prevent them from buying certain American technology. And another note
Speaker 1: on China, Nathan, Bloomberg News has learned Chinese leaders are
Speaker 1: planning to proceed with a closely watched economic policy meeting
Speaker 1: in Beijing tomorrow. The decision comes as COVID infections surge
Speaker 1: across the capitol. Senior Chinese officials meet every December topplot
Speaker 1: out economic policy for the coming year. Straight ahead, your
Speaker 1: latest local headlines, plus a check of sports. And this
Speaker 1: is Bloomberg in teren six O seven on Wall Street.
Speaker 1: Thirty two degrees in central parts. Gonna be sunny, but
Speaker 1: continued chili today with highs only near forty degrees, back
Speaker 1: down to the low thirties tonight. Amy Morris is here
Speaker 1: with more on what's going on in New York and
Speaker 1: around the world. Morning Amy, Good Morning Nathan. A three
Speaker 1: alarm fire has led to the partial collapse of a
Speaker 1: New York Police Department evidence center in Brooklyn. The fire
Speaker 1: was first reported by Police Department contractors working inside the
Speaker 1: Auto Pound. Acting Chief Jeffrey Madri says the workers saw
Speaker 1: flames that appeared to have started on one of the
Speaker 1: evidence shelves, and they called for help. They saw a fire,
Speaker 1: They alerted the police Department personnel inside. Everyone backed out
Speaker 1: was alerted. Fire officials say everything inside the facility was
Speaker 1: either lost or damaged. The fire is expected to burn
Speaker 1: for days. President Biden has signed the Historic Respect for
Speaker 1: Marriage Act, cementing federal protection for same sex and interracial
Speaker 1: marriages into law. Who do you love and would you
Speaker 1: be loyal that person you love? It's more complicated than that.
Speaker 1: The law recognized that everyone should have the right to
Speaker 1: answer those questions. For themselves without the government interference. President
Speaker 1: Biden says the law requires it a racial marriage and
Speaker 1: same sex marriage be recognized as legal in every state.
Speaker 1: A New Wall Street Journal polls shows Florida Governor Rhnde
Speaker 1: Santis now holds an early lead over Donald Trump among
Speaker 1: GOP primary voters fifty two to thirty eight percent. In
Speaker 1: a hypothetical contest, we told you yesterday in New York
Speaker 1: is encouraging people to mask up. New Jersey won't be
Speaker 1: putting a mandate in place. Well, now we're learning. Connecticut
Speaker 1: Governor Ned Lamont also says there's no need at this
Speaker 1: point for a mandate. The Hartford Current reports. Lamont says
Speaker 1: he sees no immediate concerns, but that you should wear
Speaker 1: a mask if you show any symptoms, and you need
Speaker 1: to get boosted if you haven't yet. The chief epidemiologist
Speaker 1: at Hartford Healthcare, however, says you really do need to
Speaker 1: wear a mask indoors as flu and COVID cases rise,
Speaker 1: and Governor Lamont has ordered all US and state flag
Speaker 1: it's to half staff today in remembrance of the victims
Speaker 1: of the Sandy Hook Elementary School killings. It was ten
Speaker 1: years ago today Adam Lanza opened fire at the school,
Speaker 1: killing twenty children and six adults. Global News twenty four
Speaker 1: hours a day on errand on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven hundred journalists and analysts in more
Speaker 1: than one hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan.
Speaker 1: Thanks six o nine on Wall Street Time for the
Speaker 1: Bloomberg Sports up they brought to you by Tri State
Speaker 1: out of your John Sanshwer, Thanks Dathan. Another example of
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Speaker 1: the World Cup Today's defending champion France and Cinderella Morocco.
Speaker 1: The winner plays Argentina in Sunday's final. Mississippi State is
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Speaker 1: the market open, ahead of the Fed decision, the final
Speaker 1: policy decision of two futures are moving just a touch
Speaker 1: lower now. We have SMP futures down six points, a
Speaker 1: decline of about a tenth percent. NAZAC or futures are
Speaker 1: down twenty four points, that's a drop of two tenths percent,
Speaker 1: and the Dow futures right now down a tenth percent
Speaker 1: or thirty seven points ten. Your treasury is up to
Speaker 1: thirty seconds yield three point four nine percent yield on
Speaker 1: the two year four point one seven percent. Looking at
Speaker 1: the thirty year yield right now, that's at three point
Speaker 1: five four percent six twelve on Wall Street. This is
Speaker 1: Bloomberg Daybreak, as we are now just hours away from
Speaker 1: the final policy decision from the Federal Reserve of twenty
Speaker 1: twenty two. Bloomberg Economics and Policy correspondent Michael McKee is
Speaker 1: in Washington, d c for the FEDS move on rates
Speaker 1: and the news conference, of course from chair j Powell
Speaker 1: and Mike is with us now live from our Bloomberg
Speaker 1: studios in Washington, d C. Welcome back, Mike. The wide
Speaker 1: expectation is that this is gonna be the day the
Speaker 1: Fed starts to ease up on the gas. You know,
Speaker 1: it's kind of funny. I was talking about this earlier.
Speaker 1: It's like we're all going to a show, but members
Speaker 1: of the cast have been out telling us the plot
Speaker 1: for quite some time. The FEDS decision to go fifty
Speaker 1: basis points well telegraphed, and nothing in the CPI report
Speaker 1: yesterday changed that. I think they also are going to
Speaker 1: make the case that there are going to be additional
Speaker 1: rate increases, and they will have new economic forecast and
Speaker 1: the new dot plot out. So even though we know
Speaker 1: what the rate move is going to be, there's gonna
Speaker 1: be plenty for the market to digest after j Pal
Speaker 1: is done. And I guess there's a little bit of
Speaker 1: a question, isn't there going into this meeting about whether
Speaker 1: the data we've seen on inflation, the ease from the
Speaker 1: peak back in June, is going to be enough for
Speaker 1: Chairman Powell to start to at least hint at UH
Speaker 1: more long term easing up later on in three, or
Speaker 1: whether Chairman pal is going to keep up that hawk
Speaker 1: ish message and sort of fight this market that's looking
Speaker 1: for that pivot. I would likely come down on the
Speaker 1: side of fight the market, because the Fed can always
Speaker 1: change its mind. But if you let the market start
Speaker 1: to believe you're going to cut rate sometime in three,
Speaker 1: then there's a lot of people are gonna figure, well,
Speaker 1: i'll just price that in now, and then that takes
Speaker 1: away the monetary policy impact on inflation that they're trying
Speaker 1: to have. So I think he'll be as ambiguous as
Speaker 1: possible and say something like we're going to leave rates
Speaker 1: for an extended period um to try to convince people
Speaker 1: that there's no there's nothing on the horizon right now
Speaker 1: in terms of rate cuts. That's something that they will
Speaker 1: decide as the year goes along. So it doesn't sound
Speaker 1: then like you're expecting that we're going to get much
Speaker 1: in the way of changes to the language in the
Speaker 1: final f y MC statement. I don't think. So there's
Speaker 1: not a lot of percentage change for UH for gain
Speaker 1: for them in doing that. They will adjust the economic
Speaker 1: outlook economic analysis a little bit to reflect the latest data.
Speaker 1: It will be interesting to see what they say about
Speaker 1: inflation after the CPI report, Probably something along the lines
Speaker 1: of inflation improved, but there are still pressures out there,
Speaker 1: something something like that. But the rest of it is
Speaker 1: probably going to be pretty much word for word what
Speaker 1: we have seen in the past several statements. What are
Speaker 1: you looking for, Mike, in terms of the projections on unemployment,
Speaker 1: the tightness in the labor market that's been so vexing
Speaker 1: for this FED over the last few months. That'll be
Speaker 1: an interesting thing to look at it when we get
Speaker 1: the summary of economic projections, because of course the FIT
Speaker 1: had been forecasting that we would get to four and
Speaker 1: a half percent or so on unemployment by the time
Speaker 1: they were finished. Well, they're almost finished, probably raising rates,
Speaker 1: and unemployment really hasn't moved significantly. So do they expect
Speaker 1: still expect a big move in unemployment? And uh? If so,
Speaker 1: then the question would be why, you know, given that
Speaker 1: this is the last policy decision of the year, it's
Speaker 1: kind of interesting to sort of think about what the
Speaker 1: effect of this really aggressive rate tightening over this last
Speaker 1: year has done. In two I mean we haven't really
Speaker 1: experienced uh, this kind of rapid increase in interest rates
Speaker 1: in decades. Mike. Yeah. The old saying is that the
Speaker 1: policy works with long and variable lags. And that's true
Speaker 1: because many of the decisions that you make based on
Speaker 1: buying UM costs are borrowing costs rather are things that
Speaker 1: are are more expensive and take longer to to decide on,
Speaker 1: say moving house or buying a car, buying appliances, that
Speaker 1: sort of thing. So it does take a while for
Speaker 1: the borrowing costs to reach the end consumer of it,
Speaker 1: even though they get priced into the markets right away.
Speaker 1: And so, uh, the ft isn't sure yet how much
Speaker 1: of an impact it has had, and most of that
Speaker 1: will probably come first second quarter of next year, and
Speaker 1: so we'll see, uh, we we will see this caution
Speaker 1: from them about how high they need to go because
Speaker 1: they don't know yet what they've already done. Our last
Speaker 1: thirty seconds here, Mike, what's the main point you're looking
Speaker 1: to hear from Chairman Powell today? Well, I think everybody
Speaker 1: kind of wants to know where we are in a timeline.
Speaker 1: Do we continue to raise rates at every meeting? Uh?
Speaker 1: Does does that slow down? Um? And then I think
Speaker 1: everybody wants to know whether he is going to support
Speaker 1: Morocco or France playing in the World Cup at exactly
Speaker 1: the time the FED is meeting. So so a lot
Speaker 1: of people are gonna be torn between flipping between those
Speaker 1: two things. On Toll, Well, we know that there isn't
Speaker 1: gonna be any lag to your productivity today Bloomberg's Michael, Yeah,
Speaker 1: you're probably gonna be watching it. You're gonna have like
Speaker 1: two eyes, one on Pal, one on the game. Thanks
Speaker 1: as always, Mike with us this morning from Washington ahead
Speaker 1: of the FED decision and the j Pal news conference
Speaker 1: that Mike will be watching with the game on his smartphone.
Speaker 1: Bloomberg Radio and Television hasn't for you covered a special
Speaker 1: edition to Bloomberg Surveillance. Starting at one thirty Wall Street time.
Speaker 1: You're listening to Bloomberg Daybreak this morning, markets headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business at Hand at Bloomberg Cricktake. This is
Speaker 1: a Bloomberg Business Flash and I'm Karen Moscow. US Dog
Speaker 1: index futures have turned lower as investors debate weather inflation
Speaker 1: has east enough to encourage the fed to slow monetary tightening.
Speaker 1: We checked the markets all day long here on Bloomberg Radio.
Speaker 1: S and P futures they're done about nine points right now,
Speaker 1: down to tens of upper cent. DAL futures down to
Speaker 1: tens of upper cent or sixty three points, and NASDAC
Speaker 1: features down three tons percent or thirty six points. The
Speaker 1: decks in Germany's down eight tenths of upper cent ten.
Speaker 1: Your treasury, little change, you'll three point four nine percent
Speaker 1: they yield on a two year four point one eight percent.
Speaker 1: Nine X screwt oil is up one percent or seventy
Speaker 1: three cents at seventy six dollars, twelve cents of Barrel
Speaker 1: comic school down four tens per cent or six dollars
Speaker 1: ninety cents in eighteen eighteen sixty announced. And that's a
Speaker 1: bloom Burg business flash. Now here's Amy Morris with Moore
Speaker 1: on what's going on around the world. Amy, thank you, Karen.
Speaker 1: Lawmakers have hammered out a deal in a framework to
Speaker 1: fund the government this fiscal year, helping to avert a shutdown.
Speaker 1: The House luct committee investigating last year's attack on the
Speaker 1: US Capitol will hold its final session on Monday, and
Speaker 1: in sports. In the NHL, Alex of Etchkin reaches eight
Speaker 1: hundred career goals, the Caps won, the Devil's lost, the
Speaker 1: Bruins beat the Islanders, and in the NBA the Celtics
Speaker 1: one of the Warriors lost. Global News twenty four hours
Speaker 1: a day, powered by more than twenty journalists and analysts
Speaker 1: in more than one hundred twenty countries. I'm Amy Morris.
Speaker 1: This is Bloomberg, Nathan. Thanks Amy. It's six twenty three
Speaker 1: on Wall Street. I'm Nathan Hager. This is Bloomberg Daybreak,
Speaker 1: and we want to bring you more of our coverage
Speaker 1: of the collapse of a f t X and the
Speaker 1: arrest of its co founder, Sam Bankman Freed. Bloomberg Washington
Speaker 1: correspondent Joe Matthew spoke with Democratic Congressman Brad Sherman about
Speaker 1: what we learned yesterday when ft X is current CEO
Speaker 1: testified before the House Financial Services Committee and the kind
Speaker 1: of punishment Sam Bankman Freed could face. What do you
Speaker 1: think of John Ray. I think he's doing a good job.
Speaker 1: But the the barn door was open, the horses left,
Speaker 1: and the we'll see what he what he can do.
Speaker 1: Do you have an allergy to crypto just in general.
Speaker 1: And there's no wrong answers here. This isn't like a
Speaker 1: crypto show on Bloomberg or anything. But I can see
Speaker 1: you're not a fan. No, the I've been trying for
Speaker 1: five years to either banned American investment in crypto or
Speaker 1: to force the entire crypto ecosystem to follow them know
Speaker 1: your Customer rules. They won't do that because the whole
Speaker 1: purpose of crypto, the business plan, is to be a
Speaker 1: secret currency, hence the term cryptocurrency, and to compete with
Speaker 1: the US dollar by having one advantage over the US dollar,
Speaker 1: and that is that it's a currency. They can be
Speaker 1: better used by those who engage in sanctions, evasion, tax evasion.
Speaker 1: Um based in bankman Freed will tell you about bankruptcy,
Speaker 1: court evasion, drug dealing, etcetera. Is this the moment here?
Speaker 1: Is ft X a crypto story that is this sort
Speaker 1: of the the hook that leads to the regulation or
Speaker 1: is this just an old fashioned offshore robbery story. Um
Speaker 1: My fear is that it will be regarded as the latter.
Speaker 1: And the fact is, though, when you're dealing with an enterprise,
Speaker 1: the whole purpose of which is to come up with
Speaker 1: a currency, system that allows you to evade American financial law.
Speaker 1: Then you're going to be dealing with people who are
Speaker 1: going to evade American financial law. Talk to us about
Speaker 1: the donation's Congressman, are you concerned the Democrats who took
Speaker 1: money from Sam Bank and Freed could bring credibility issues
Speaker 1: to this story. Are the two parties prepared to tackle
Speaker 1: this together? Well? Uh, the fact is Sam bankman Freed
Speaker 1: uh did interview last month in which he said he
Speaker 1: gave as much money to Republicans as Democrats, but the
Speaker 1: Republican money he gave the dark money organizations. And he
Speaker 1: explained why, and it made perfect sense. He says, the
Speaker 1: press is liberal, probably is, and they would have beaten
Speaker 1: him up for giving money two Republicans. So he gives
Speaker 1: the Republican money under the table, gives the Democratic money
Speaker 1: over the table. He's an equal opportunity influence purchasers. And
Speaker 1: then uh uh Ryan Slom, the co CEO of one
Speaker 1: of the FDx enterprises, did another million dollars exclusively to Republicans.
Speaker 1: So uh, they they had one thing, keep the sec
Speaker 1: out of the crypto world. And the point, the point
Speaker 1: I made to my colleagues today is don't come here
Speaker 1: and trash. Sam Bankman freed and then passes bill. His
Speaker 1: bill is designed to provide a little patina of regulation
Speaker 1: to crypto uh, to give authority to the CFTC, a
Speaker 1: much weaker regulatory organization, and then make people feel safe.
Speaker 1: That was Democratic Congressman Brad Sherman speaking with Bloomberg's Joe
Speaker 1: Matthew on sound On. You can catch the show weeknights
Speaker 1: five pm Wall Street Time on Bloomberg Radio, or download
Speaker 1: the sound on podcast wherever you get your podcasts. Let's
Speaker 1: look a bitcoin right now, trading four tenths of a
Speaker 1: percent higher this morning, right around seventeen thousand, eight hundred
Speaker 1: SMP futures are down six points, Stayle futures down forty two,
Speaker 1: and Nasdaq futures are lower by twenty seven points ten.
Speaker 1: Your treasury yield three point four nine percent. We've got
Speaker 1: your top stories, local headlines, and the full check of
Speaker 1: markets just ahead. First, let's check in with Bloomberg meteorologist
Speaker 1: Rob Carolin for your weather forecast. High pressure is in
Speaker 1: control today. We'll see sunshine, but we'll also notice that
Speaker 1: sun getting a little dimmer this afternoon. Is some high
Speaker 1: clouds move in from the west and south. Temperatures today
Speaker 1: at the forty It will become cloudy overnight thirty to
Speaker 1: thirty five. Low pressure is headed towards the region tomorrow
Speaker 1: that will result in rain tomorrow afternoon. Element may start
Speaker 1: as wet snow forty five, rainy, breezy Friday forty five
Speaker 1: to fift eight. I'm Rob Carolyn with your three and
Speaker 1: a forecast on Bloomberg eleven three oh broadcasting live from
Speaker 1: the Bloomberg Interacted Broker's studio in New York, Bloomberg E
Speaker 1: Living Free on to Washington, d C, Bloomberg nine one
Speaker 1: to Boston, Bloomberg one O six one does San Francisco,
Speaker 1: Bloomberg nine sixty to the country, Sirius XM T one
Speaker 1: ninet and around the globe the Bloomberg Business and Bloomberg
Speaker 1: Radio dot Com. This is Bloomberg Daybreak, coming up to
Speaker 1: six thirty on Wall Street. Good morning, I'm Nathan Hagar
Speaker 1: and I'm Karen Moscow or just a three hours away
Speaker 1: from the open of US training time for the five
Speaker 1: things you need to know to start your day. Brought
Speaker 1: to you by Interactive Brokers. Interactive Broker's clients are an
Speaker 1: interest of up to three point three three on the
Speaker 1: idle cash and their brokerage accounts. Visit ibyk r dot
Speaker 1: com slash interest rates to learn more. At first, the
Speaker 1: Federal Reserve is set to decide on interest rates for
Speaker 1: the final time this year. Influential economist at Stanford University,
Speaker 1: Professor John Taylor says the Central Bank cannot afford to
Speaker 1: pause hikes too quickly. The Fed got well behind the
Speaker 1: curve in the seventies and we don't want to have
Speaker 1: that situation. The inflation rate increase has been over a
Speaker 1: shorter period of time, is maybe eighteen months. So we
Speaker 1: can do this if the fetish determined, if the people
Speaker 1: are supportive of the Fed, if they realized this is
Speaker 1: the best way to get the inflation down. It's not
Speaker 1: by waiting and dilly dally, and it's really by taking
Speaker 1: the action right now. Stanford. John Taylor spoke with Bloomberg's
Speaker 1: Kathleen Hayes. Stay tuned for coverage of today's FED decision
Speaker 1: at one thirty pm Wall Street Time on bloom Burg
Speaker 1: Radio and television. Well the Fed decision comes, Karen after
Speaker 1: Stock's got a boost from yesterday's CPI reading the key
Speaker 1: gauge of consumer prices posted its smallest monthly advance in
Speaker 1: more than a year. But Kathryn Kaminsky, she researched strategist
Speaker 1: with Alpha Simplex, says traders should expect more bumps ahead.
Speaker 1: People are really anticipating that this will disappear a lot
Speaker 1: quicker than say the Fed is really willing to act.
Speaker 1: They still have to figure out how to deal with
Speaker 1: such a big difference between their desired inflation number and
Speaker 1: where we already are. Kathryn Kaminsky with Alpha Simplex says
Speaker 1: she's closely watching the next steps. Jade Powell outlines in
Speaker 1: today's news conference, Well now, Nathan, we moved to the
Speaker 1: latest on disgraced ftx go founder Sam Bankman Freed. We're
Speaker 1: learning he plans to fight extradition to the US and Bloomberg.
Speaker 1: Steve Rappaport joins US Live with more. Steve, good morning,
Speaker 1: Good morning, Karen, and Nathan. U s authorities can lobby
Speaker 1: the Bohemian government all they want to hand Bankman Freed over,
Speaker 1: but a group of advisors in London has the final say.
Speaker 1: That's because the island is a British commonwealth, potentially up
Speaker 1: the case for years if Bankman Free takes his fight
Speaker 1: all the way to the Privy Council meantime of Bahamian
Speaker 1: judge denied Bankman Freed's request for bail, deeming him a
Speaker 1: flight risk, and extradition hearing is scheduled for February eighth,
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,
Speaker 1: think we have a political note this morning as well,
Speaker 1: the Biden administration's ramping up tensions with China as it
Speaker 1: plans to put China's leading maker of memory chips and
Speaker 1: more than thirty other companies on the US trade blacklist
Speaker 1: that would prevent them from buying certain American technology. And
Speaker 1: that's the five things that you need to notice start
Speaker 1: your day. Brought to you by Interactive Brokers. Again, futures
Speaker 1: are moving lower this morning. S and P Future is
Speaker 1: now down five points or about a tenth of upper
Speaker 1: cent DAL Future is down almost a tenth of upper
Speaker 1: cent or twenty nine points, and NASDAC features down two
Speaker 1: tenths per cent er twenty one points. Ten year Treasury
Speaker 1: up one thirty second deal three point four and nine percent,
Speaker 1: and they yield on the two year four point one
Speaker 1: eight percent straight ahead, your latest local headlines, plus the
Speaker 1: check of sports. Sam. This is Bloomberg. Thanks Karen sixty
Speaker 1: one on Wall Street. Amy Morris is here now with
Speaker 1: a look at what's going on in New York and
Speaker 1: around the world. Amy, Good morning, Good morning Nathan. A
Speaker 1: New York Police Department evidence center in a warehouse in
Speaker 1: Brooklyn has partially collapsed after a three alarm fire broke
Speaker 1: out yesterday. Fire Chief John Hodgen says everything inside the
Speaker 1: facility is either lost or damage. This building is not
Speaker 1: really a very sturdy type of building. It's a metal
Speaker 1: building with trust construction, which has a large collapse potential,
Speaker 1: which is why we backed on members out of the building.
Speaker 1: Fire is expected to keep burning for days. Lawmakers have
Speaker 1: hammered out a deal in a framework to fund the
Speaker 1: government for the fiscal years. Senate Republican leader Mitch McConnell
Speaker 1: says they have to be done with this by December
Speaker 1: twenty two, not to be back here between Christmas and
Speaker 1: New Year's and if we can't meet that deadline, would
Speaker 1: be happy to pass a short term cr into early
Speaker 1: next year. McConnell's has a short term bill is the
Speaker 1: most likely solution and and that lawmakers will likely take
Speaker 1: up an omnibus bill in the new year. Republicans seem
Speaker 1: to be leading toward Florida Governor Ronda Santis. A New
Speaker 1: Wall Street Journal poll shows to Santis now leading up,
Speaker 1: holding an early lead over Donald Trump among GOP primary
Speaker 1: voters fifty two to thirty eight percent, and a hypothetical contest.
Speaker 1: Advocates are calling on a federal judge to immediately pause
Speaker 1: New York City's initiative to involuntarily hospitalize those suffering from
Speaker 1: mental health episodes. Miranda von Dalen with New York Lawyers
Speaker 1: for Public Interest says the Mayor's plan is unconstitutional and
Speaker 1: violates the Americans with disabilities at People are now scared
Speaker 1: to leave their homes because they think that they may
Speaker 1: get picked up by the police for psychiatric evaluation. New
Speaker 1: York Mayor Adams says this is not a police let initiative.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quick Take, powered by more than twenty seven
Speaker 1: hundred journalists and analysts in more than one hundred twenty countries.
Speaker 1: I'm Amy Morris, this is Bloomberg. Nathan six thirty three
Speaker 1: on Wall Street time for the Bloomberg Sports that day,
Speaker 1: proxy by Fries state, out of your stunts, Okay, Nathan,
Speaker 1: It's great to be a free agent shortstop. Three of
Speaker 1: them just signed contracts worth a total of nine hundred
Speaker 1: and thirty million dollars. Trade Turner to the Phillies, Andrew
Speaker 1: Bogart's to San Diego, and now Carlos Correa headed to
Speaker 1: the San Francisco Giants thirteen years, three hundred and fifty million,
Speaker 1: the Giants using money they had originally hoped to use
Speaker 1: on Aaron Judge on the ice. Devils are cooling off,
Speaker 1: lost at home to Dallas four to one, their third
Speaker 1: straight lost. Islanders in Boston, where the Bruins only lost
Speaker 1: once all season. The Bruins won for three you know,
Speaker 1: shootout a hat trick for alex O Vets get in
Speaker 1: Washington's win. The last of the three was career goal
Speaker 1: number eight hundred. Nicks go for a fifth grade win tonight.
Speaker 1: They're in Chicago. Morocco has made it to the World
Speaker 1: Cuffs Semifinals by allowing only one goal in five games
Speaker 1: that was an own goal. They've already upset Spain and Portugal,
Speaker 1: and today Morocco takes on defending champion France and the
Speaker 1: winner faces is Argentina in Sunday's World Cup Finals Sunday Night,
Speaker 1: huge game for the Giants in Washington. They had that
Speaker 1: tie with the commanders of the two teams are tied
Speaker 1: in the standings. Brian day Balls team winless in the
Speaker 1: last four games. A long season. There's quite a bit
Speaker 1: of adversity throughout it. Maybe it's you know, for some teams,
Speaker 1: it's in the beginning, for some teams it's in the middle,
Speaker 1: for other teams at the end. You know, we're going
Speaker 1: through a little bit of it right now, and I
Speaker 1: think it's important to stay consistent um do the things
Speaker 1: that you need to do to try to win games.
Speaker 1: Washington only one loss in its last eight games that
Speaker 1: Jets Sunday host Detroit and the Lions have won five
Speaker 1: of the last six. John Stash went Bloomberg Sports. Nathan
Speaker 1: all right, John, thank you, and Bloomberg Sports was brought
Speaker 1: to you by Audie. Don't let someone else drive off
Speaker 1: in the Audi model you've always wanted. Visit your local
Speaker 1: Try and State Autie dealer to get behind the wheel
Speaker 1: of yours today, or visit Autie offers dot Com for
Speaker 1: more information. Sp futures down down seven point, stuff futures down,
Speaker 1: and NASTAC futures are lower by twenty nine points six
Speaker 1: thirty five on Wall Street. Bloomberg Radio is on the
Speaker 1: air from San Francisco to New York, London to Hong Kong.
Speaker 1: Let's check in with our global news team for some
Speaker 1: of the top stories heard on our three hundred affiliate
Speaker 1: radio stations around the world. I'm Steve Potisk on wf
Speaker 1: L A Tampa Bay. We're talking about a possible two
Speaker 1: billion dollar sail of a St. Petersburg software company. I'm
Speaker 1: Corny Tanaho on ktr H in Houston. The cost of
Speaker 1: dessert keeps on surging ahead of holidays. I'm Kimberly Adams
Speaker 1: and on KYW in Philadelphia. I'll be reporting on one
Speaker 1: of the world's largest banking organizations sending out recruitment emails
Speaker 1: to rival bankers facing cuts. I'm Stephen Carol and Bloomberg
Speaker 1: d a B Radio in London. We've been reporting on
Speaker 1: UK consumer price inflation slowing more than had been expected
Speaker 1: in November, but staying close to a forty one year high.
Speaker 1: I'm d Cory on w w J in Detroit. I'm
Speaker 1: reporting GM wants to make sure it has the minerals
Speaker 1: it needs to be a major player in electric vehicle
Speaker 1: Those are some of the stories our hundred Bloomberg journalists
Speaker 1: and analysts are working on this morning around the world.
Speaker 1: It's six thirty six on Wall Street. The following is
Speaker 1: an editorial from Bloomberg Opinion. This editorial was written by
Speaker 1: the Bloomberg Editorial Board. Is the age of nuclear fusion
Speaker 1: finally dawning? After decades of research, scientists have been making
Speaker 1: serious progress. This week came news of the latest milestone.
Speaker 1: Scientists in California recently induced a fusion reaction that produced
Speaker 1: a net energy gain. In other words, it generated more
Speaker 1: power than it consumed. Net gain has been the elusive
Speaker 1: loadstar of fusion research since the nineteen fifties. Realizing it
Speaker 1: should give a major boost to global research efforts and
Speaker 1: offer a tantalizing glimpse of fusion's real world possibilities. As
Speaker 1: the science advances, global cooperation will be essential, and above all,
Speaker 1: governments must avoid the sort of red tape that has
Speaker 1: needlessly held up traditional fission projects. Unlocking the power of
Speaker 1: the stars will be no easy feet This editorial was
Speaker 1: written by the Bloomberg Editorial Board. For more Bloomberg opinion,
Speaker 1: please go to Bloomberg dot com slash Opinion or O
Speaker 1: P I n go on the Bloomberg Terminal. This has
Speaker 1: been Bloomberg opinion and you can hear Bloomberg opinion commentaries
Speaker 1: every weekday at this time, terminal customers can read more
Speaker 1: at O P I n go. As we look ahead
Speaker 1: to the market open and the final Federal Reserve decision
Speaker 1: of twenty twenty two, futures are taking a leg lower.
Speaker 1: We have SMP futures right now down eight points down,
Speaker 1: futures are down fifty five and NASDAC futures are lower
Speaker 1: now by thirty three points ten. Your treasury is little
Speaker 1: changed now, the yield just shy of three point five
Speaker 1: percent yield on the two year four point one eight
Speaker 1: nim X scrudgs moving higher. That's on one percent or
Speaker 1: seventy six cents at seventy thirteen of barrel for West
Speaker 1: Texas Intermediate Comx skolled down four tenths percent at eighteen
Speaker 1: eighteen fifty announced straight ahead on daybreak, we head to
Speaker 1: the nation's capital. The f t X fallout new tensions
Speaker 1: with China and our Republicans fading former President Trump. This
Speaker 1: is Bloomberg Markets, headlines and breaking news twenty four hours
Speaker 1: a day at Bloomberg dot com, the Bloomberg Business at
Speaker 1: and at Bloomberg Quicktake. This is a Bloomberg Business clash
Speaker 1: and I'm Karen Moscow, and futures are lower this morning.
Speaker 1: We go to the first word breaking news dash for
Speaker 1: today's morning call, and here's Bill Maloney. Bill, good morning,
Speaker 1: and good morning, Karen. That's right. Modest losses in the
Speaker 1: US futures right now at down futures down forty six
Speaker 1: point says to be dropped seven and and as the
Speaker 1: futures are lower by twenty nine, the US ten yield
Speaker 1: at three point five percent, Gold is down six, Oil
Speaker 1: is trading in the green, and bitcoin is a little changed.
Speaker 1: Japan rose point seven percent overnight, while your pre markets
Speaker 1: are in the red this morning, and back in the US.
Speaker 1: On the economic Frontay thirty, the import price in next
Speaker 1: and at two o'clock the eff MC rate decision. In
Speaker 1: other news, the i e A said that oil prices
Speaker 1: may rally next year as sanctions squeeze Ussian supplies and
Speaker 1: wrapping things up Hilton was cut to neutral over at
Speaker 1: C Group, Martin mary And was cut the equate at
Speaker 1: Morgan Stanley, and Liberty Global was cut to neutral over
Speaker 1: at Goldman Sachs. Live from the First Breaking News doscom
Speaker 1: do maloney care? All right, Phil, thank you to hear
Speaker 1: live breaking news over your Bloomberg type squawk on your terminal.
Speaker 1: Sc you a w K and that's a Bloomberg business flash.
Speaker 1: Now here's Amy Morris with Moore on what's going on
Speaker 1: around the world. Amy, all right, thank you. Care and
Speaker 1: the White House asking Congress for resources to help mitigate
Speaker 1: an influx of migrants crossing the US Mexico border. Democrats
Speaker 1: want to work with Republicans on bipartisan immigration reform as
Speaker 1: the Title forty two policy is set to end in
Speaker 1: one week. A new report from the CDC says long
Speaker 1: COVID played a part in more than thirty deaths in
Speaker 1: the US. Most who died from long COVID were older
Speaker 1: white men and sports. In the NHL, alex Ovechkin reaches
Speaker 1: eight hundred career goals as the Caps one the Devil's lost,
Speaker 1: the Bruins beat the Islanders. In the NBA, the Celtics
Speaker 1: one of the Warriors lost Global news twenty four hours
Speaker 1: a day on errand on Bloomberg Quicktake, powered by more
Speaker 1: than twenty hundred journalists and analysts in more than one
Speaker 1: hundred twenty countries. I'm Amy Morris. This is Bloomberg, Karen right, Amy,
Speaker 1: thank you. It is sixty two on Wall Street and
Speaker 1: we turned to news and science and technology now with
Speaker 1: the Bloomberg n j i T STEM Report. It has
Speaker 1: brought to you buy New Jersey Institute of Technology and
Speaker 1: j i T offers New Jersey's first undergraduate degree in
Speaker 1: fintech tech driven finance focused. What will you make at
Speaker 1: n j I T. Learn more at n j I
Speaker 1: T dot edu slash fintech. Now, here's just making news
Speaker 1: and science, technology, engineering and maths. A dust devil sound
Speaker 1: like on Mars Will announcer Rover by chance had its
Speaker 1: microsphone microphone on when a whirling tower of red dust
Speaker 1: passed directly overhead. Recording the racket, scientists yesterday released the
Speaker 1: first of its kind audio. It's about ten seconds of
Speaker 1: not only rumbling gossip up to twenty five miles per hour,
Speaker 1: but the pinning of hundreds of dust particles against the
Speaker 1: rover perseverance. Bloomberg News has learned that Apple is preparing
Speaker 1: to allow alternative app stores on its iPhones and iPads
Speaker 1: in the coming months. The historic pivot is a response
Speaker 1: to EU laws set to take effect in four aimed
Speaker 1: at leveling the playing field for third party developers. Regulators
Speaker 1: have accused Apple and Google of wielding too much power
Speaker 1: as gatekeepers are the biggest mobile app stores. And Elon
Speaker 1: Musk is no longer the richest person in the world.
Speaker 1: He's been displaced by Bernard are No, who owns almost
Speaker 1: fifty percent of French luxury giant LVMH. According to the
Speaker 1: Bloomberg Billionaires and Dex, Musk has seen his fortune tumble
Speaker 1: by more than one hundred billion dollars since January. The Tesla,
Speaker 1: Twitter and space X boss is now worth just under
Speaker 1: a hundred sixty four billion dollars. And that's a Bloomberg
Speaker 1: and j I t Stem report. Nathan, Now, that's a
Speaker 1: lot of money to dry your tears on. Thank you, Karen.
Speaker 1: We're coming into on Wall Street time now to check
Speaker 1: what's going on in d C. Some of the top
Speaker 1: stories in our nation's capital included second round of hearing
Speaker 1: is coming up today on the collapse of f t
Speaker 1: X and co founder Sam Bankman freed, the US adding
Speaker 1: more than thirty Chinese companies to its trade blacklist, President
Speaker 1: Biden welcoming African leaders in a bid to undo an
Speaker 1: image of US neglect of the continent, and a polling
Speaker 1: shift for Republicans ahead of presidential race. Let's bring in
Speaker 1: Bloomberg Government reporter Emily Wilkins to take a look at
Speaker 1: some of these stories. Emily, I'm sure you were following
Speaker 1: the ft X hearing at the House Financial Services Committee
Speaker 1: very closely yesterday. What were your takeaways from that? Um,
Speaker 1: it was definitely an interesting hearing. I mean, certainly it
Speaker 1: the I think one of the more notable things was
Speaker 1: that the night before Sam Bateman Freed was supposed to appear,
Speaker 1: he was arrested. Chair of the committee, Maxim Waters, was
Speaker 1: not particularly thrilled about that. She said that Americans do
Speaker 1: need to hear from SPF on exactly what happened. But
Speaker 1: they did wind up speaking with John Ray, who was
Speaker 1: handling the company's restructuring. And the big thing that I
Speaker 1: think he said there, I don't think it comes as
Speaker 1: a surprise was the first time you've really heard it
Speaker 1: is that folks who used f t X will likely
Speaker 1: not be able to get their money back, and he
Speaker 1: expects international consumer is to fare far worse than ones
Speaker 1: in the US. Certainly, a lot of what was happening yesterday,
Speaker 1: I think a lot of what the committee is trying
Speaker 1: to get at here is just sort of understanding what
Speaker 1: went wrong, because now the big question Washington is how
Speaker 1: does Washington need to regulate the space? How can they
Speaker 1: regulate this space? There's certainly a bipartisan interest in it.
Speaker 1: We've seen bipartisan legislation already come out looking at digital assets.
Speaker 1: And I asked Kevin McCarthy, who's going to be the
Speaker 1: likely speaker of that House next year, about it yesterday
Speaker 1: and he said, yes, there definitely is a spot for regulation,
Speaker 1: and and certainly there's a sense that that they that
Speaker 1: they do need to move on this particular issue. Uh.
Speaker 1: And so I think that's sort of what all these
Speaker 1: hearings are just laying the groundwork for, is for eventual
Speaker 1: action on in some sort of legislation, probably of course
Speaker 1: not this year, but but in the next year. And
Speaker 1: of course we're going to see more of those hearings
Speaker 1: coming up later today at the Senate Banking Committee. So
Speaker 1: we'll see if there's any further development there. In the meantime, Emily,
Speaker 1: we've got yet more evidence that trade tensions between the
Speaker 1: US and China aren't going away anytime soon. Uh. No,
Speaker 1: Bloomber is reporting that the Biden administration is going to
Speaker 1: add another thirty Chinese companies to a blacklist trade preventing
Speaker 1: them from buying certain American components. These are companies that
Speaker 1: the U says that they cannot prove that aren't supporting
Speaker 1: the Chinese military, So that is part of the concern there.
Speaker 1: And this includes the makers of memory chips, including Youngstering
Speaker 1: Memory Strategies. They are a major major chip maker UM
Speaker 1: and this could potentially have serious impacts on their business. Uh.
Speaker 1: Putting companies on this list really decimated Huawei Technologies consumer
Speaker 1: smartphone business, and it's harmed others as well. And this
Speaker 1: comes after Biden and build a really sweeping set of
Speaker 1: restrictions on China's ability to buy semi conductors and chip
Speaker 1: making equipment in October. So it seems like the US
Speaker 1: and China we've had Biden and she talked a little
Speaker 1: more of a bit more base to base, have that
Speaker 1: one meeting, but it still seems like on the issues
Speaker 1: of tips, on the issues of semi conductors, uh, the
Speaker 1: two of them still you know, they're not seeing eye
Speaker 1: to eye on the U S I think is really
Speaker 1: trying to move to make sure that their own industries
Speaker 1: are protected as well as some national security concerns. Yeah,
Speaker 1: it's interesting to see this latest evidence of a US
Speaker 1: Chinese trade tensions unfolding as President Biden gets ready to
Speaker 1: host a summit with Africa leaders. As you know, Emily,
Speaker 1: China has been investing very heavily in the African continent
Speaker 1: for years. Yeah, and what the US is trying to do,
Speaker 1: no a little bit, is to catch up with that,
Speaker 1: to invite these delegations from really fifty African countries as
Speaker 1: well as the African Union and say, hey, you know
Speaker 1: you want to still be an ally, We still want
Speaker 1: to make sure the US is helping this. This this
Speaker 1: summit that we're seeing today is the person that's kind
Speaker 1: in eight years and Biden is gonna make several announcements
Speaker 1: announcing a bid for the African Union to join the
Speaker 1: Group of twenty four is a permanent member, and for
Speaker 1: the continent al to permanent member. See on the U
Speaker 1: S Security Council. The US is also set to announce
Speaker 1: about fifty five billion dollar investment in infrastructure, but to
Speaker 1: me and then again, that just pales in comparison to
Speaker 1: the seven hundred billion infrastructure loans that China has already made.
Speaker 1: And so there's I think a lot of sense that
Speaker 1: there does the US does need to be active in Africa.
Speaker 1: It's it's sort of another area where the US has
Speaker 1: sort of set back while China has gone invested, um
Speaker 1: built up. It's it's it's ability to help in the continent.
Speaker 1: And I think now you're you're seeing the Biden administration
Speaker 1: they tried to focus so much on China and Beijing,
Speaker 1: and certainly they see Africa is a larger part of
Speaker 1: that relation. Yeah, so we'll be watching for developments from
Speaker 1: that summit with African leaders at President Bid will be
Speaker 1: hosting later on this afternoon over at the White House.
Speaker 1: Bloomberg Government reporter Emily Wilkins, thank you as always keeping
Speaker 1: us on top of what's happening in d C. Read
Speaker 1: more at Bloomberg dot com or on the Bloomberg Terminal.
Speaker 1: Listen to Bloomberg Radio in Washington. Bloomberg and one oh
Speaker 1: five point seven fm h D two SMP futures right
Speaker 1: now down five points, Staff futures down thirty four. NASTAC
Speaker 1: futures are lower by twenty one points. Looking at the
Speaker 1: bond space ten your treasury is little changed right now.
Speaker 1: Yield just shy of three and a half percent yield
Speaker 1: on the two year fourteent nim X scrudge moving higher
Speaker 1: right now at one point two percent, or eighty nine
Speaker 1: cents at seventy six dollars twenty cents a barrel head
Speaker 1: of a FED decision coming up at two pm Wall
Speaker 1: Street time. Of course, we will have full coverage for
Speaker 1: you throughout the day. This is Bloomberg Markets headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot
Speaker 1: Com and Bloomberg Business Out and at Bloomberg Quicktake. This
Speaker 1: is a Bloomburn business flash, and I'm Karen Moscow. We're
Speaker 1: watching shares of Delta this morning of three and a
Speaker 1: half percent in early training after it updated its guide
Speaker 1: ence and Bloomberg's creating Goopta will have details in just
Speaker 1: a moment. Futures are little change this morning. All SMP,
Speaker 1: NASDAC and DOW futures are all little change check markets
Speaker 1: all day long. Here on Bloomberg Tenure Treasury up one
Speaker 1: thirty second, you have three point four nine percent. They
Speaker 1: yield on the two year four point one eight percent.
Speaker 1: Nim X Scrude oil is up one point one percent,
Speaker 1: up seventy eight cents at seventy six dollars seventeen cents
Speaker 1: of barrel COMEX School down half percent or eight dollars
Speaker 1: ninety cents at eighteen sixteen seventy announced, the Euro one
Speaker 1: point six four seven against the dollar, British bound one
Speaker 1: point to three seven four the end one thirty four
Speaker 1: point nine nine, and big going up a third of
Speaker 1: a percent at seventeen thousand, eight hundred dollars. And that's
Speaker 1: a Bloomberg business flash. Nathan, all right, Karen, thanks six
Speaker 1: fifty six on Wall Street. Let's bring in Bloomberg Radio
Speaker 1: TV Markets correspondent Crety Gupta right now to take a
Speaker 1: look at Delta Airlines and some of the other names
Speaker 1: moving in the pre market. Let's talk about those earnings creating.
Speaker 1: Let's talk about those earnings. You know, we were coming
Speaker 1: into this morning with this background of weakening demand. The
Speaker 1: idea here being that a lot of these companies. Jet Blue,
Speaker 1: for example, yesterday warning that there is going to be
Speaker 1: slowdown in travel that is coming. You're gonna start to
Speaker 1: seal all these recessionary calls kind of catch up with
Speaker 1: the airline industry. On the other hand, yesterday you heard
Speaker 1: that United was putting in a big order with Bow
Speaker 1: and essentially indicating their long haul investment. Well, Delta coming
Speaker 1: out and saying, well, you know what, we're gonna take
Speaker 1: a little bit out of both other airlines playbook. We're
Speaker 1: gonna say that there's going to be some weakening demand.
Speaker 1: But they are still raising their profit outlook, and that's
Speaker 1: really what's moving the shares this morning. D a L
Speaker 1: is your ticker for Delta. Shares are about three point
Speaker 1: eight percent in the pre market. Now, this is important.
Speaker 1: They did boost their fourth quarter earnings, but their revenue
Speaker 1: forecast was trimmed a little bit, so this is important
Speaker 1: when it comes to the short term kind of travel
Speaker 1: window looks to be pretty bullish, but it's still starting
Speaker 1: to say in the long term maybe things could kind
Speaker 1: of waiver. So some interesting numbers coming out of Delta.
Speaker 1: I want to talk about some of the big analyst
Speaker 1: moves as well, though, Nathan, because Tesla is coming out
Speaker 1: t s l A is your ticker, and of course
Speaker 1: we know this is a stock that's been under a
Speaker 1: lot of pressure. Yesterday it was responsible for almost fifteen
Speaker 1: percent of the market. Declined this morning under pressure once again,
Speaker 1: about nine tenths of one percent, this time thanks to
Speaker 1: Goldman Sachs slashing its price target on the EV maker
Speaker 1: by almost a quarter, the broker lowing their estmis to
Speaker 1: reflect quote software supply and demand. And this is crucial
Speaker 1: when we talk about the affordability question of Tesla, but
Speaker 1: also are people buying cars in general, and of course
Speaker 1: Tesla is going to be extra exposed to that given
Speaker 1: the type of car that they offer in the EV infrastructure.
Speaker 1: Let's talk about Marriott as well, m A R as
Speaker 1: your ticker, down one point three percent, City coming in
Speaker 1: cutting its recommendation on the stocks, and Neutral from by
Speaker 1: and downgrading a few other names in the reeds and
Speaker 1: lodgings sector. So not thrilled again about the travel sector,
Speaker 1: a similar theme that we're hearing out of Delta and
Speaker 1: again Jet Blue from yesterday. Nathan, I want to leave
Speaker 1: you with one more Lennard L E. N Now we
Speaker 1: love to look at this company for kind of its
Speaker 1: correlation with the home building sector. If you're really bullish
Speaker 1: on the American housing market, you're going to be bullish
Speaker 1: on the stock. By extension, l e N up one
Speaker 1: point three percent this time is actually up because Barkley's
Speaker 1: is upgrading not just Leonard but Polti Group as well.
Speaker 1: PHM is the ticker there and those shares are also
Speaker 1: higher by about one and a half percent. But Barkley's
Speaker 1: upgraded both stocks overnight, turning positive on the home builder
Speaker 1: subsector broadly, So you can really see it's a little
Speaker 1: bit of a turnaround. A lot of that pullback post.
Speaker 1: It looks like Barkley saying there's in favor again. Yeah,
Speaker 1: lots going on in the analyst recommendation area. Will the
Speaker 1: broader market looks like it's waiting to see what the
Speaker 1: Fed does later on today. Thanks as always, Bloomberg Gradi
Speaker 1: on TV Markets correspondent Creedy Gupta SMP futures little change
Speaker 1: right now, DAL futures up five points, NASTAC futures down
Speaker 1: four points ahead of that Fed decision. Two pm. Wall
Speaker 1: Street Time. This is Bloomberg Daybreak. I'm Nathan Hagar along
Speaker 1: with Karen Moscow, six fifty nine on Wall Street, Bloomberg
Speaker 1: Surveillance starts right now, live from the financial capital of
Speaker 1: the world, broadcasting across the globe. This is w b
Speaker 1: b R New York, Bloomberg Living Frio. We're looking at
Speaker 1: twenty three is a big transition, yet three is opening
Speaker 1: the