1 00:00:01,680 --> 00:00:05,040 Speaker 1: Markets, headlines and breaking news twenty four hours a day 2 00:00:05,160 --> 00:00:08,720 Speaker 1: at Bloomberg dot com, the Bloomberg Business Outland at Bloomberg 3 00:00:08,800 --> 00:00:18,960 Speaker 1: Quick Tape, She's a Bloomberg business flash and I'm Karen Moscow. 4 00:00:19,040 --> 00:00:22,000 Speaker 1: And futures are higher led by technology shares. We checked 5 00:00:22,040 --> 00:00:24,760 Speaker 1: the markets all day long year on Bloomberg SMP futures 6 00:00:24,800 --> 00:00:27,760 Speaker 1: up half percent of seventeen points down, features up two 7 00:00:27,800 --> 00:00:30,320 Speaker 1: tens of a percent or seventy four points, and nosday 8 00:00:30,360 --> 00:00:33,600 Speaker 1: futures up seven tenths of a percent or seventy five points. 9 00:00:33,600 --> 00:00:36,159 Speaker 1: The decks in Germany's up about two tenths of a percent. 10 00:00:36,479 --> 00:00:38,800 Speaker 1: Ten year treasury up one thirty second deal three point 11 00:00:38,800 --> 00:00:40,919 Speaker 1: eight seven percent. That yield on the two year four 12 00:00:40,960 --> 00:00:44,040 Speaker 1: point three six percent. NIMEX screwed oil is down one 13 00:00:44,080 --> 00:00:46,840 Speaker 1: percent on ninety four cents at seventy eight dollars two 14 00:00:46,840 --> 00:00:48,960 Speaker 1: cents of Barrel Comic School down a tenth of a 15 00:00:49,040 --> 00:00:52,680 Speaker 1: percent or two dollars fifty cents at eighteen thirteen thirty announced. 16 00:00:53,040 --> 00:00:55,520 Speaker 1: The euro one point oh six three nine against the dollar, 17 00:00:55,560 --> 00:00:58,120 Speaker 1: British pound one point two zero two six, the yen 18 00:00:58,200 --> 00:01:00,800 Speaker 1: one thirty three point seven three and bit growing up 19 00:01:00,840 --> 00:01:04,160 Speaker 1: about half percent and about sixteen thousand, six hundred dollars. 20 00:01:04,560 --> 00:01:07,480 Speaker 1: And as a Bloomberg Business flash, John all right, Karen, 21 00:01:07,520 --> 00:01:09,720 Speaker 1: thanks very much. Is now all six fifty six on 22 00:01:09,880 --> 00:01:11,880 Speaker 1: Wall Street. Time to take a look at stocks, some 23 00:01:11,959 --> 00:01:13,520 Speaker 1: of the names that are moving in the pre market. 24 00:01:13,640 --> 00:01:15,560 Speaker 1: And for that we're joined by Bloomberg Radio and TV 25 00:01:15,680 --> 00:01:20,800 Speaker 1: Markets correspondent Kritty Gupta. Here's a quiz. What stock brought 26 00:01:20,840 --> 00:01:25,560 Speaker 1: a windfall of seventeen billion dollars for shorts last year 27 00:01:25,720 --> 00:01:30,039 Speaker 1: or this year? You know it's your first stock, it 28 00:01:30,120 --> 00:01:31,720 Speaker 1: is my first stock. I just wanted to make sure 29 00:01:31,880 --> 00:01:38,360 Speaker 1: that I was right. I'm just I'm just staring at stump. 30 00:01:38,440 --> 00:01:42,560 Speaker 1: The reporter Tesla is the first doc C s L 31 00:01:42,640 --> 00:01:45,479 Speaker 1: a day win the pop quiz series about four point 32 00:01:45,480 --> 00:01:47,560 Speaker 1: four percent this morning. Let's come back to you after 33 00:01:47,560 --> 00:01:52,200 Speaker 1: an analyst kind of I will say standpard approval reconfirmation. 34 00:01:52,240 --> 00:01:55,360 Speaker 1: I would say Morgan Stanley of Adam Jonas over there, 35 00:01:55,360 --> 00:01:58,320 Speaker 1: the analyst saying that he d rating in the ev 36 00:01:58,480 --> 00:02:01,840 Speaker 1: company stock has created did an opportunity. He did lower 37 00:02:01,880 --> 00:02:05,120 Speaker 1: his private price target to two fifty dollars from three 38 00:02:05,200 --> 00:02:07,920 Speaker 1: hundred and thirty, but he is sticking to his overweight rating. 39 00:02:07,960 --> 00:02:10,760 Speaker 1: Tesla shares now training about a hundred and seventeen dollars. 40 00:02:10,919 --> 00:02:13,600 Speaker 1: So basically, he's saying that those wave of analysts downgrades 41 00:02:13,600 --> 00:02:15,280 Speaker 1: that I had pressured the stock in the last couple 42 00:02:15,280 --> 00:02:18,320 Speaker 1: of days and arguably weeks, He's sticking to his guns 43 00:02:18,360 --> 00:02:20,680 Speaker 1: here and saying, well, look that is actually making it 44 00:02:21,040 --> 00:02:24,000 Speaker 1: a little bit cheaper to hop into. So nevertheless, Tesla 45 00:02:24,080 --> 00:02:26,360 Speaker 1: shares t s l A up four point four percent, 46 00:02:26,639 --> 00:02:29,880 Speaker 1: down a hundred and seventeen or excuse me, um training 47 00:02:29,919 --> 00:02:31,639 Speaker 1: around a hundred and seventeen a share. And this is 48 00:02:31,680 --> 00:02:36,560 Speaker 1: also important because it's coming after about seven days of losses. 49 00:02:36,800 --> 00:02:38,840 Speaker 1: Yesterday was its first positive day. Let see if it 50 00:02:38,919 --> 00:02:41,839 Speaker 1: holds into today. Maybe in a Tesla and a peer 51 00:02:41,960 --> 00:02:45,480 Speaker 1: to peer car sharing marketplace. I have a car sharing 52 00:02:45,720 --> 00:02:49,520 Speaker 1: um program at my house with a teenager. It doesn't work. 53 00:02:50,280 --> 00:02:53,519 Speaker 1: What's this next stock? Let's talk about the stock called 54 00:02:53,600 --> 00:02:56,320 Speaker 1: Get Around g E. T R shares are up. While 55 00:02:56,320 --> 00:02:58,360 Speaker 1: they were about three point three percent, they are now 56 00:02:58,440 --> 00:03:00,240 Speaker 1: up about one percent. This is a stock that was 57 00:03:00,280 --> 00:03:04,080 Speaker 1: initiated with an overweight rating and just a one dollar 58 00:03:04,240 --> 00:03:06,760 Speaker 1: fifty cent price target. One of those really tiny stocks 59 00:03:06,800 --> 00:03:09,800 Speaker 1: but worth remembering because it's one of the only movers 60 00:03:09,800 --> 00:03:12,120 Speaker 1: out there this morning over a Piper Sandler, they're saying 61 00:03:12,200 --> 00:03:14,720 Speaker 1: that the platform looks well positioned to provide, to your point, 62 00:03:14,720 --> 00:03:18,120 Speaker 1: pier to pier car sharing marketplace. Um. The other one 63 00:03:18,120 --> 00:03:20,280 Speaker 1: I really want to point out here is the oil story, 64 00:03:20,320 --> 00:03:22,600 Speaker 1: because you are seeing oil come down a little bit 65 00:03:22,840 --> 00:03:24,920 Speaker 1: uh this morning, and that is having a ripple effect 66 00:03:24,960 --> 00:03:27,600 Speaker 1: into Exxon and Chevron as well. X O M is 67 00:03:27,639 --> 00:03:30,320 Speaker 1: your taker DWN about seven tenths of one percent and 68 00:03:30,440 --> 00:03:33,080 Speaker 1: Chevron not far behind a cv X down eight tenths 69 00:03:33,080 --> 00:03:34,600 Speaker 1: of one percent. A lot of this has to do 70 00:03:34,960 --> 00:03:39,880 Speaker 1: with this idea of is a Chinese reopening inflationary or disinflationary? Yeah, 71 00:03:39,920 --> 00:03:42,080 Speaker 1: I mean it's interestion. We were talking about that today 72 00:03:42,120 --> 00:03:44,960 Speaker 1: because it's like, I'm kind of kind of confused. Second 73 00:03:45,000 --> 00:03:49,360 Speaker 1: largest economy reopens, good, right, you know, oil run, But 74 00:03:49,440 --> 00:03:52,880 Speaker 1: then you have the well we hadn't COVID spread possibly 75 00:03:53,040 --> 00:03:55,280 Speaker 1: we had an oil analyst on early edition this morning 76 00:03:55,520 --> 00:04:00,000 Speaker 1: bloomber Television actually talking about, well, look, China's domestic demand 77 00:04:00,040 --> 00:04:02,680 Speaker 1: and is going in domestic tourism is going to wrap 78 00:04:02,800 --> 00:04:04,600 Speaker 1: up from reopening, which is of course a bullish river. 79 00:04:04,720 --> 00:04:06,880 Speaker 1: But the spread of COVID, to your point, could be 80 00:04:06,920 --> 00:04:09,560 Speaker 1: a bearish one. All right, Bloomberg Radio and TV Markets 81 00:04:09,600 --> 00:04:12,760 Speaker 1: correspondent crittic Group to thank you, appreciated Critty and looking 82 00:04:12,800 --> 00:04:15,120 Speaker 1: at stocks as the whole ahead of the open SMP 83 00:04:15,320 --> 00:04:18,679 Speaker 1: futures of seventeen right now down future is up seventy 84 00:04:18,720 --> 00:04:21,760 Speaker 1: four and the state futures up seventy four. And for 85 00:04:21,960 --> 00:04:25,520 Speaker 1: Karen Moscow, I'm John Tucker. To stay with Just ahead, 86 00:04:25,600 --> 00:04:32,000 Speaker 1: you can hear Bloomberg Surveillance live from the financial capital 87 00:04:32,000 --> 00:04:35,880 Speaker 1: of the world broadcasting across below. This is w VBR 88 00:04:36,000 --> 00:04:45,440 Speaker 1: New York Bloomberg he limon Frio. I don't see any 89 00:04:45,480 --> 00:04:48,120 Speaker 1: reason for the Fed to be moving that two percent target. 90 00:04:48,279 --> 00:04:53,440 Speaker 1: We finally have come to grips with markets, headlines and 91 00:04:53,520 --> 00:04:56,800 Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com, 92 00:04:56,920 --> 00:05:00,480 Speaker 1: the Bloomberg Business at and at Bloomberg Quick Take, She's 93 00:05:00,480 --> 00:05:09,400 Speaker 1: a bloom Burn Business Lash and I'm Karen Monstcaw and 94 00:05:09,520 --> 00:05:12,880 Speaker 1: futures are on the rise. This morning, led by tech Shares, 95 00:05:12,960 --> 00:05:15,240 Speaker 1: we get the first word breaking news dance for today's 96 00:05:15,279 --> 00:05:20,880 Speaker 1: morning call. And here's Tatiana Darry Tatiana, good morning, Good morning, Karen, 97 00:05:20,960 --> 00:05:24,040 Speaker 1: futures are holding around the highs, with the dull contracts 98 00:05:24,080 --> 00:05:26,400 Speaker 1: up sixty two points, S and P s up sixteen 99 00:05:26,760 --> 00:05:29,640 Speaker 1: and nastacap seventy two. The U S tenure yield is 100 00:05:29,720 --> 00:05:32,360 Speaker 1: lower by one basis point to a three spot eight 101 00:05:32,480 --> 00:05:35,520 Speaker 1: seven percent. This morning. Oil is down to and the 102 00:05:35,600 --> 00:05:38,919 Speaker 1: dollar is weak or by about two tenths. Elsewhere. European 103 00:05:38,960 --> 00:05:42,080 Speaker 1: stocks are slightly higher at this hour, while Asian markets 104 00:05:42,120 --> 00:05:45,280 Speaker 1: fell overnight. Back in the US on the economic front, 105 00:05:45,279 --> 00:05:48,679 Speaker 1: today we have jobless claims at eight thirty. In early 106 00:05:48,760 --> 00:05:51,800 Speaker 1: trading this morning, Tesla on the move again, shares up 107 00:05:51,839 --> 00:05:55,320 Speaker 1: five percent after Morgan Stanley said hears are more attractive 108 00:05:55,440 --> 00:05:58,760 Speaker 1: after the recent decline, and Netflix is up one after 109 00:05:58,800 --> 00:06:02,839 Speaker 1: an upgrade at CFR eight. In other news, Get Around 110 00:06:02,920 --> 00:06:06,160 Speaker 1: was initiated with an overweight at Piper Sandler and keep 111 00:06:06,200 --> 00:06:08,680 Speaker 1: an Eye of Sketcher shares after Piper gave it a 112 00:06:08,720 --> 00:06:12,880 Speaker 1: neutral rating, calling its valuation fair. Live from the first 113 00:06:12,880 --> 00:06:16,760 Speaker 1: and breaking news task, I'm Tatiana, Daria Karen very Tatiana, 114 00:06:16,800 --> 00:06:19,000 Speaker 1: thank you and here live breaking news of your Bloomberg 115 00:06:19,040 --> 00:06:21,920 Speaker 1: type squawk on your terminal ascue you a w K 116 00:06:22,080 --> 00:06:24,440 Speaker 1: and as a Bloomberg Business Flash. Now here's Michael Barr 117 00:06:24,520 --> 00:06:26,760 Speaker 1: with more on what's going on around the world. Michael, 118 00:06:26,839 --> 00:06:29,000 Speaker 1: paren thank you very much. More than twenty three hundred 119 00:06:29,040 --> 00:06:32,480 Speaker 1: Southwest flights are already canceled today, marking the fourth strade 120 00:06:32,520 --> 00:06:35,840 Speaker 1: day of the airline has canceled more than fifty percent 121 00:06:36,120 --> 00:06:39,440 Speaker 1: of its scheduled flights, and all more than thirteen thousand 122 00:06:39,520 --> 00:06:42,599 Speaker 1: Southwest flights of the past week been canceled. The U 123 00:06:42,720 --> 00:06:46,599 Speaker 1: S is reinstating mandatory COVID nineteen testing for airline travelers 124 00:06:46,680 --> 00:06:49,960 Speaker 1: arriving from China. The CDC says the new measures follow 125 00:06:49,960 --> 00:06:53,440 Speaker 1: a surgeon infections in China and a lack of transparency 126 00:06:53,480 --> 00:06:57,520 Speaker 1: from Chinese officials. A massive fire at a Cambodian hotel 127 00:06:57,640 --> 00:07:01,400 Speaker 1: casino has killed about a dozen people. In the NBA, 128 00:07:01,600 --> 00:07:04,640 Speaker 1: the Nets won their tenth straight, the Wizards and Warriors one. 129 00:07:05,000 --> 00:07:08,240 Speaker 1: In the NHL, the Bruins Devils three one. Global news 130 00:07:08,320 --> 00:07:10,800 Speaker 1: twenty four hours a day on air and on Bloomberg 131 00:07:10,840 --> 00:07:14,640 Speaker 1: Quick Take, powered by more than journalists analysts in more 132 00:07:14,680 --> 00:07:17,720 Speaker 1: than a d twenty countries. I'm Michael Barr, and this 133 00:07:18,120 --> 00:07:21,840 Speaker 1: is Bloomberg. Karen you. It is six forty two on 134 00:07:21,880 --> 00:07:24,000 Speaker 1: Wall Street, and we turned to news and science and 135 00:07:24,000 --> 00:07:27,200 Speaker 1: technology now at the Bloomberg and j I. T. Stem Report, 136 00:07:27,320 --> 00:07:30,440 Speaker 1: and here's just making news and science, technology, engineering and math. 137 00:07:30,880 --> 00:07:33,960 Speaker 1: South Korea's semiconductor production in November felt by the most 138 00:07:34,000 --> 00:07:37,080 Speaker 1: since the global financial crisis, pointing to a further cooling 139 00:07:37,080 --> 00:07:40,600 Speaker 1: of overseas demand for tech components. Chip production shrank for 140 00:07:40,640 --> 00:07:43,760 Speaker 1: a fourth straight month, following fift from a year earlier, 141 00:07:44,040 --> 00:07:46,920 Speaker 1: for the largest drops ince two thousand nine. According to 142 00:07:47,000 --> 00:07:50,840 Speaker 1: data from the National Statistics Office, Lithium will get less 143 00:07:50,840 --> 00:07:54,400 Speaker 1: expensive in this according to a Chinese supplier or the 144 00:07:54,400 --> 00:07:58,360 Speaker 1: battery metal, potentially offering some relief to electric vehicle makers 145 00:07:58,360 --> 00:08:02,200 Speaker 1: sweezed by soaring costs. More supplies emerged to trim abnormally 146 00:08:02,280 --> 00:08:05,320 Speaker 1: high margins for lithium producers, according to the chairman of 147 00:08:05,360 --> 00:08:08,480 Speaker 1: Sina Mine Resource Group and the value of I P O, 148 00:08:08,600 --> 00:08:10,840 Speaker 1: S C M and as in Israel's tech industry this 149 00:08:10,920 --> 00:08:15,240 Speaker 1: year fell substantially from one levels. Rising interest rates and 150 00:08:15,320 --> 00:08:18,880 Speaker 1: economic uncertainty forced a reckoning. According to our report by 151 00:08:18,960 --> 00:08:21,880 Speaker 1: p w C found they were seventy two deals in 152 00:08:22,600 --> 00:08:26,160 Speaker 1: two down from one the previous year, with most of 153 00:08:26,240 --> 00:08:29,240 Speaker 1: transactions taking place in the first half of the year, 154 00:08:29,640 --> 00:08:32,480 Speaker 1: and as the Bloomberg and J. I. T. Stem Report, John, 155 00:08:32,520 --> 00:08:34,640 Speaker 1: all right, Karen, thanks a lot, appreciated the e is 156 00:08:34,800 --> 00:08:37,160 Speaker 1: sixty four Ound Wall Street. Time to check what's going 157 00:08:37,200 --> 00:08:39,559 Speaker 1: on in d C. Some of the top stories in 158 00:08:39,640 --> 00:08:44,320 Speaker 1: the nation's capital include what political prognosticators are facing A 159 00:08:44,440 --> 00:08:48,480 Speaker 1: mountain of unknowns for the coming year, starting with whether 160 00:08:48,520 --> 00:08:50,839 Speaker 1: President Joe Biden is going to seek a second term? 161 00:08:51,080 --> 00:08:54,840 Speaker 1: A great piece from Bloomberg Opinion. It raises all sorts 162 00:08:54,960 --> 00:08:58,160 Speaker 1: of questions for the new year. And who better to 163 00:08:58,200 --> 00:09:01,920 Speaker 1: explore these questions with this morning? Joining us is Wendy Shiller, 164 00:09:02,000 --> 00:09:05,959 Speaker 1: director of the Center for American Politics and Policy at 165 00:09:06,000 --> 00:09:09,400 Speaker 1: Brown University. Always a pleasure, Professor, Thanks for being with us. 166 00:09:10,320 --> 00:09:15,479 Speaker 1: President Biden, will you seek another term? There are other cliffhangers, 167 00:09:15,520 --> 00:09:19,800 Speaker 1: including whether former President Donald Trump will be indicted, whether 168 00:09:19,840 --> 00:09:23,800 Speaker 1: Kevin McCarthy's going to succeed in getting elected Speaker of 169 00:09:23,880 --> 00:09:27,400 Speaker 1: the House. Let's start with Joe Biden. Um, how do 170 00:09:27,480 --> 00:09:32,160 Speaker 1: we divine what his plans might be? Well, he's I mean, 171 00:09:32,160 --> 00:09:34,080 Speaker 1: he's a leader of the Democratic Party, as a leader 172 00:09:34,120 --> 00:09:38,240 Speaker 1: of quote unquote the free world. Uh, it seems you know, 173 00:09:38,920 --> 00:09:41,760 Speaker 1: very very likely that he will aside to announce that 174 00:09:41,800 --> 00:09:47,120 Speaker 1: he is seeking the presidency again, if only as a placeholder. 175 00:09:47,120 --> 00:09:49,240 Speaker 1: In other words, you know, the Democrats feel like they 176 00:09:49,240 --> 00:09:51,680 Speaker 1: came off a good year productivity and they sort of 177 00:09:51,800 --> 00:09:55,760 Speaker 1: narrowly escaped somewhat of a glooming disaster in the mid terms. 178 00:09:55,800 --> 00:09:58,559 Speaker 1: They did much better than people think. Uh, and things 179 00:09:58,559 --> 00:10:02,280 Speaker 1: in the economy seem to be dire going to three 180 00:10:02,360 --> 00:10:04,360 Speaker 1: then people saw a couple of months ago. So it 181 00:10:04,400 --> 00:10:07,120 Speaker 1: doesn't make any sense not to run. Uh, you know, 182 00:10:07,400 --> 00:10:10,280 Speaker 1: you have a whole technically a whole year file, but obviously, 183 00:10:10,559 --> 00:10:12,440 Speaker 1: you know, you want people to believe that you're still 184 00:10:12,480 --> 00:10:16,319 Speaker 1: going to be there after for anything that you want 185 00:10:16,360 --> 00:10:18,280 Speaker 1: to get done in the next two years, So it 186 00:10:18,320 --> 00:10:20,600 Speaker 1: makes sense to announce. I mean, you can always change 187 00:10:20,600 --> 00:10:22,360 Speaker 1: your mind, you can always drop out, you can always 188 00:10:22,280 --> 00:10:25,000 Speaker 1: with draw. There doesn't seem to be a very solid 189 00:10:25,120 --> 00:10:29,600 Speaker 1: Democratic backbencher that could take his place easily to lead 190 00:10:29,640 --> 00:10:31,640 Speaker 1: the party in twenty four so it makes no sense 191 00:10:31,679 --> 00:10:35,560 Speaker 1: not to run. We know he's running for president Donald Trump. 192 00:10:36,000 --> 00:10:39,679 Speaker 1: Is it going to be indicted anytime soon? You know, 193 00:10:39,720 --> 00:10:43,720 Speaker 1: I think there are two very strong looming issues for 194 00:10:43,800 --> 00:10:48,040 Speaker 1: the country in terms of literally stability in the system. Uh. 195 00:10:48,160 --> 00:10:49,880 Speaker 1: You know, we've kind of gone through the elections. We 196 00:10:49,960 --> 00:10:52,240 Speaker 1: made it through the elections, and elections seem to work 197 00:10:52,280 --> 00:10:54,920 Speaker 1: for the most part, so that element of our democracy 198 00:10:54,960 --> 00:10:57,080 Speaker 1: seems to be stable. But if you do not have 199 00:10:57,080 --> 00:10:59,280 Speaker 1: a stable speaker at the House, you can't run the 200 00:10:59,320 --> 00:11:01,360 Speaker 1: set whole coming it. If you don't have a stable 201 00:11:01,400 --> 00:11:04,560 Speaker 1: majority party, you can't run the federal government. So this 202 00:11:04,640 --> 00:11:07,280 Speaker 1: is really really important that Kevin McCarthy, if he's going 203 00:11:07,320 --> 00:11:10,120 Speaker 1: to be speaker, gets elected smoothly and that he can 204 00:11:10,200 --> 00:11:13,360 Speaker 1: can control his party. Not to mention the debt ceiling 205 00:11:13,400 --> 00:11:16,640 Speaker 1: coming up, but just for functionality, you need a functional 206 00:11:16,679 --> 00:11:19,559 Speaker 1: majority party in the House. Uh. And if you indict 207 00:11:19,640 --> 00:11:22,920 Speaker 1: Donald Trump, um, that may actually push the party to 208 00:11:23,000 --> 00:11:27,440 Speaker 1: more unity. Republican Party against that effort. So it's sort 209 00:11:27,480 --> 00:11:30,120 Speaker 1: of ironic that the thing that might destabilize one part 210 00:11:30,160 --> 00:11:33,800 Speaker 1: of the sector of the country Trump supporters might actually 211 00:11:33,880 --> 00:11:37,360 Speaker 1: stabilize the leadership and the Republican Party in the House. Well, 212 00:11:37,600 --> 00:11:39,240 Speaker 1: these are the two things that I'm looking at most 213 00:11:39,240 --> 00:11:41,520 Speaker 1: of all. Uh. You also alluded to at the federal 214 00:11:41,520 --> 00:11:45,439 Speaker 1: government set to hit the borrowing limits sometime next year, 215 00:11:46,040 --> 00:11:50,080 Speaker 1: with Republicans taking control of the House. Uh, will we 216 00:11:50,280 --> 00:11:54,640 Speaker 1: default on our debt? Well, that is just an extraordinarily 217 00:11:54,679 --> 00:11:58,240 Speaker 1: important concern. Uh. You know, if McCarthy can bring which 218 00:11:58,280 --> 00:12:00,720 Speaker 1: the Speaker can do if he points to write people 219 00:12:00,720 --> 00:12:03,120 Speaker 1: to the quote unquote Rules Committee, that's the committee that 220 00:12:03,120 --> 00:12:05,800 Speaker 1: determines typically which bills can get to the House floor. 221 00:12:05,840 --> 00:12:07,840 Speaker 1: If you can get the debt ceiling to the House floor, 222 00:12:08,120 --> 00:12:11,000 Speaker 1: it'll pass because some Democrats will vote for it. They'll 223 00:12:11,000 --> 00:12:12,760 Speaker 1: have to vote for it because they don't want Biden 224 00:12:12,760 --> 00:12:15,400 Speaker 1: administration to have to deal with the default. So the 225 00:12:15,400 --> 00:12:18,240 Speaker 1: Republicans know that McCarthy knows that he can lose a 226 00:12:18,280 --> 00:12:20,760 Speaker 1: good portion of his caucus if he can get the 227 00:12:20,800 --> 00:12:23,040 Speaker 1: bill and the rule approved to get get the debt 228 00:12:23,080 --> 00:12:24,640 Speaker 1: seiling to the floor of the House, he can have 229 00:12:24,720 --> 00:12:26,960 Speaker 1: most of his party vote against it, where the Democrats 230 00:12:26,960 --> 00:12:29,160 Speaker 1: are gonna face enormous pressure to vote order it just 231 00:12:29,280 --> 00:12:32,680 Speaker 1: because they want to support the Biden administration economically. And 232 00:12:33,440 --> 00:12:36,560 Speaker 1: the next question that's that's raised with the Republican House 233 00:12:36,679 --> 00:12:41,360 Speaker 1: impeached Joe Biden. See to me, I think that's an overreach. 234 00:12:41,480 --> 00:12:43,319 Speaker 1: And I think if you've if you've been watching politics 235 00:12:43,360 --> 00:12:45,840 Speaker 1: long enough, you know that new Gingridge. Eventually when he 236 00:12:45,920 --> 00:12:48,800 Speaker 1: ran the House, he overreached and it costs the Republicans 237 00:12:48,840 --> 00:12:51,040 Speaker 1: called him in particular, but it cost the Republicans. And 238 00:12:51,120 --> 00:12:54,120 Speaker 1: I think, um, I think this is something that McCarthy 239 00:12:54,120 --> 00:12:56,760 Speaker 1: has to think about. You know, will the House Republicans 240 00:12:56,840 --> 00:12:59,440 Speaker 1: care about the twenty four presidential race or they just 241 00:12:59,600 --> 00:13:01,120 Speaker 1: decide thing that they you know, they want to be 242 00:13:01,120 --> 00:13:02,760 Speaker 1: in the majority and want to stay in the majority, 243 00:13:03,040 --> 00:13:06,520 Speaker 1: and impeaching will mobilize their local base in the constituencies 244 00:13:06,559 --> 00:13:08,920 Speaker 1: that they won. But think about the conference people from 245 00:13:09,040 --> 00:13:12,640 Speaker 1: New York in particular and California, the new Republicans elected there, 246 00:13:12,840 --> 00:13:15,600 Speaker 1: I'm not sure they are constituencies have the stomach to 247 00:13:15,640 --> 00:13:17,920 Speaker 1: go through an impeachment of Joe Biden. And if those 248 00:13:17,960 --> 00:13:20,040 Speaker 1: are the seats that gave you the majority, then you 249 00:13:20,040 --> 00:13:22,040 Speaker 1: have to wear about holding onto them. And that's going 250 00:13:22,120 --> 00:13:24,079 Speaker 1: to be the calculation Macarti is gonna have to make 251 00:13:24,800 --> 00:13:27,840 Speaker 1: odd number years when you are when the bulk of 252 00:13:27,920 --> 00:13:32,880 Speaker 1: candidate recruitment happens for a Senate and gubernatorial candidates. So 253 00:13:32,920 --> 00:13:35,640 Speaker 1: the question arises in the next minute that we have 254 00:13:35,720 --> 00:13:39,360 Speaker 1: will Republican recruitment for these races go better than they 255 00:13:39,360 --> 00:13:43,760 Speaker 1: did this year well in trem And the big, big 256 00:13:43,760 --> 00:13:45,800 Speaker 1: problem in the Senate races, what are the people who 257 00:13:45,800 --> 00:13:48,440 Speaker 1: were endorsed by Trump, who are election deniers, who are 258 00:13:48,440 --> 00:13:50,640 Speaker 1: sort of quote unquote living in the past. There seems 259 00:13:50,640 --> 00:13:53,200 Speaker 1: to be a lot of rhetoric coming out of Republican 260 00:13:53,240 --> 00:13:55,840 Speaker 1: Party people saying we're gonna move forward and move forward, 261 00:13:55,880 --> 00:13:58,120 Speaker 1: looking to the future. This is what positions were onto 262 00:13:58,160 --> 00:14:01,640 Speaker 1: santas governor of governor elect to being reelected in Florida. 263 00:14:02,080 --> 00:14:04,720 Speaker 1: Uh so, well going into the twenty four races, so 264 00:14:04,800 --> 00:14:07,240 Speaker 1: we'll see how that goes. That you've got George Santos 265 00:14:07,320 --> 00:14:10,200 Speaker 1: and New York who lied pretty much about everything it 266 00:14:10,240 --> 00:14:12,520 Speaker 1: seems in his background, and now you've got a real 267 00:14:12,559 --> 00:14:15,079 Speaker 1: problem again, they've got a credibility problem. Is this the 268 00:14:15,240 --> 00:14:18,640 Speaker 1: kind of Republican party that Independence will support in congressional 269 00:14:18,720 --> 00:14:21,480 Speaker 1: races and the presidential race? And so far we saw 270 00:14:21,480 --> 00:14:24,600 Speaker 1: Independence go slightly for the Democrats in two And the 271 00:14:24,640 --> 00:14:27,080 Speaker 1: only way the Republicans hold on the majority is if 272 00:14:27,120 --> 00:14:31,200 Speaker 1: they can moderate some of these uh these rhetorical issues 273 00:14:31,200 --> 00:14:35,400 Speaker 1: and also truthful issues um and hold onto those seats 274 00:14:35,400 --> 00:14:37,840 Speaker 1: they picked up. And that's the big challenge for them 275 00:14:37,960 --> 00:14:40,800 Speaker 1: and right now. You know, we have no idea how 276 00:14:40,760 --> 00:14:43,200 Speaker 1: they gonna to do that. When do you always a pleasure? 277 00:14:43,200 --> 00:14:45,840 Speaker 1: When doy Show a Director's Center for American Politics and 278 00:14:45,960 --> 00:14:53,240 Speaker 1: Policy at Brown University. You're listening to Bloomberg Markets, headlines 279 00:14:53,280 --> 00:14:56,280 Speaker 1: and breaking news twenty four hours a day at Bloomberg 280 00:14:56,360 --> 00:14:59,640 Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg Quicktake, 281 00:15:00,280 --> 00:15:09,280 Speaker 1: He's a Bloomburn business flash and I'm kared Moscow. You 282 00:15:09,320 --> 00:15:11,800 Speaker 1: guys knock into X futures on their rise this morning, 283 00:15:11,840 --> 00:15:14,440 Speaker 1: led by technology shares, and we check the markets all 284 00:15:14,520 --> 00:15:17,040 Speaker 1: day long here on Bloomberg s and P futures up 285 00:15:17,360 --> 00:15:19,760 Speaker 1: four tens of up percent of seventeen points and down 286 00:15:19,760 --> 00:15:22,360 Speaker 1: futures of two tens of upper cent or sixty eight points. 287 00:15:22,680 --> 00:15:25,160 Speaker 1: NASAIC future is up seven tenths of a percent, or 288 00:15:25,200 --> 00:15:28,200 Speaker 1: seventy eight points. The decks in Germany's of a tenth 289 00:15:28,240 --> 00:15:30,760 Speaker 1: of upper cent and your treasury up three thirty seconds. 290 00:15:30,760 --> 00:15:32,800 Speaker 1: You have three point eight seven percent They yield on 291 00:15:32,880 --> 00:15:35,960 Speaker 1: the two year four point three five percent. Nine excret 292 00:15:36,000 --> 00:15:38,280 Speaker 1: oil is down one point four percent out of dollar 293 00:15:38,320 --> 00:15:40,760 Speaker 1: ten at seventy seven dollars eighty five cents of barrel 294 00:15:41,040 --> 00:15:43,560 Speaker 1: comex school down two tenths percent or three dollars ten 295 00:15:43,600 --> 00:15:46,840 Speaker 1: cents at eighteen twelve seventy announced the euro one point 296 00:15:46,840 --> 00:15:49,320 Speaker 1: oh six three three against the dollar, British found one 297 00:15:49,320 --> 00:15:51,960 Speaker 1: point two zero to eight, then one thirty three point 298 00:15:52,040 --> 00:15:55,080 Speaker 1: seven five and Bitcoin this morning up half percent at 299 00:15:55,120 --> 00:15:58,800 Speaker 1: about sixteen thousand, five hundred ninety dollars. And that's a 300 00:15:58,840 --> 00:16:01,760 Speaker 1: Bloomberg business flag show. Here's Michael Barr with more. I'm 301 00:16:01,800 --> 00:16:04,120 Speaker 1: what's going on around the world, Michael Karen, thank you 302 00:16:04,200 --> 00:16:06,440 Speaker 1: very much. Southwest is trying to recover from one of 303 00:16:06,480 --> 00:16:10,400 Speaker 1: the worst airline meltdowns in US history. Passengers are still 304 00:16:10,440 --> 00:16:14,160 Speaker 1: stranded all over the country. Another twenty three hundred Southwest 305 00:16:14,160 --> 00:16:17,600 Speaker 1: flights have been canceled for today. The US and Italy 306 00:16:17,720 --> 00:16:21,360 Speaker 1: joined an increasing number of nations requiring COVID tests for 307 00:16:21,480 --> 00:16:24,840 Speaker 1: travelers from China. Concerns are mounting over the risk of 308 00:16:24,880 --> 00:16:28,320 Speaker 1: any new variants emerging from the surgeon infections in the country. 309 00:16:28,800 --> 00:16:31,560 Speaker 1: In the NBA, the Nets one their tenth straight, the 310 00:16:31,640 --> 00:16:34,920 Speaker 1: Wizards and Warriors one. In the NHL, the Bruins beat 311 00:16:34,960 --> 00:16:37,720 Speaker 1: the Devil's three one. Global news twenty four hours a 312 00:16:37,800 --> 00:16:40,440 Speaker 1: day on here and on Bloomberg Quick Take powered by 313 00:16:40,440 --> 00:16:44,040 Speaker 1: more than twenty seven under journalist and analyists more than 314 00:16:44,440 --> 00:16:47,760 Speaker 1: twenty countries. I'm Michael bar This is Bloomberg. Michael, thank you, 315 00:16:47,880 --> 00:16:50,320 Speaker 1: six twenty three on Wall Street. I'm John Tucker. You're 316 00:16:50,360 --> 00:16:53,720 Speaker 1: listening to Bloomberg day Break. Overnight, Russia ramped up attacks 317 00:16:53,720 --> 00:16:56,640 Speaker 1: on major cities in Ukraine. It comes as the Russian 318 00:16:56,720 --> 00:16:59,840 Speaker 1: Foreign Minister Sergei Lavrov ruled out peace talks to in 319 00:17:00,000 --> 00:17:02,960 Speaker 1: the war, that's in spite of major losses and sent 320 00:17:03,040 --> 00:17:06,399 Speaker 1: backs on the battlefield for Russia. The former US Defense 321 00:17:06,440 --> 00:17:09,440 Speaker 1: Secretary Market Aspert, weighing in on the conflict, he sent 322 00:17:09,520 --> 00:17:13,520 Speaker 1: down to discuss the war with Bloomberg's David Weston. Let's 323 00:17:13,560 --> 00:17:15,640 Speaker 1: turn to Ukraine, which we've talked about in the past. 324 00:17:15,680 --> 00:17:18,359 Speaker 1: As you say, there was that dramatic speech from President 325 00:17:18,400 --> 00:17:22,399 Speaker 1: Zelinsky before the Joint Meeting of Congress UH and I 326 00:17:22,440 --> 00:17:24,639 Speaker 1: wonder what you took away from that and whether, in 327 00:17:24,720 --> 00:17:28,439 Speaker 1: fact the United States should be perhaps changing its attitude 328 00:17:28,560 --> 00:17:31,480 Speaker 1: toward Ukraine, because certainly President Lensky was not shy but 329 00:17:31,640 --> 00:17:34,000 Speaker 1: saying he really appreciates what he's gotten, but he needed 330 00:17:34,080 --> 00:17:36,760 Speaker 1: leads an a lot more things like fixed wing aircraft, 331 00:17:36,920 --> 00:17:40,360 Speaker 1: things like longer range missiles. His visit was very important, 332 00:17:40,400 --> 00:17:43,359 Speaker 1: His speech was very impressive. It sent a message to 333 00:17:43,440 --> 00:17:46,040 Speaker 1: the Russians, of course, that the United States was standing 334 00:17:46,320 --> 00:17:48,480 Speaker 1: behind them, particularly as we head into the winter months 335 00:17:48,600 --> 00:17:51,000 Speaker 1: right now. And it was a chance for Biden President 336 00:17:51,000 --> 00:17:53,040 Speaker 1: buying a message the American people and for us to 337 00:17:53,040 --> 00:17:55,639 Speaker 1: message the allies. And look, I think we've done a 338 00:17:55,680 --> 00:17:57,440 Speaker 1: good job, but we could be doing so much more. 339 00:17:57,800 --> 00:18:01,160 Speaker 1: They do need fixed wing aircraft, they do need tanks. Uh, 340 00:18:01,200 --> 00:18:03,760 Speaker 1: they do need the means to conduct an offensive campaign, 341 00:18:03,840 --> 00:18:06,760 Speaker 1: to do a counter offensive. That's how you break a 342 00:18:06,800 --> 00:18:09,359 Speaker 1: trench warfare type stalemate that we're kind of seeing now. 343 00:18:10,080 --> 00:18:13,280 Speaker 1: That's at the operational level. At the strategic level, they 344 00:18:13,320 --> 00:18:16,320 Speaker 1: need far more and greater air defenses. And look, the 345 00:18:16,400 --> 00:18:18,199 Speaker 1: United States has done a lot, but we need our 346 00:18:18,240 --> 00:18:20,520 Speaker 1: allies to do a whole lot more. Most of our 347 00:18:20,560 --> 00:18:23,240 Speaker 1: allies have contributed less than six hundred million dollars or 348 00:18:23,280 --> 00:18:26,240 Speaker 1: so in military aid. The United States tens of billions 349 00:18:26,240 --> 00:18:28,919 Speaker 1: of dollars. So if we can get more of our 350 00:18:28,960 --> 00:18:31,360 Speaker 1: allies to do more of that, to provide those critical 351 00:18:31,680 --> 00:18:33,879 Speaker 1: arms and pieces of equipment that I just mentioned, we 352 00:18:33,880 --> 00:18:35,840 Speaker 1: can allow the Ukrainians to get on the offensive, to 353 00:18:35,840 --> 00:18:38,119 Speaker 1: push the Russians out and bring this war to a 354 00:18:38,200 --> 00:18:40,639 Speaker 1: quicker conclusion than than the path that looks to be 355 00:18:40,680 --> 00:18:42,240 Speaker 1: on right now. Well, that's just what I want to 356 00:18:42,240 --> 00:18:44,440 Speaker 1: ask about going on the offensive, as you just said, 357 00:18:44,560 --> 00:18:46,760 Speaker 1: because I think in some quarters that might be thought, well, 358 00:18:46,800 --> 00:18:48,760 Speaker 1: this is turning sort of into a stalemate and this 359 00:18:48,800 --> 00:18:50,840 Speaker 1: will go on for a long time, become chronic. It 360 00:18:50,880 --> 00:18:53,040 Speaker 1: looks like perhaps that's what letter of Putin wants. If 361 00:18:53,080 --> 00:18:55,439 Speaker 1: the Ukrainies are not winning this war, are they losing 362 00:18:55,440 --> 00:19:00,840 Speaker 1: it ultimately? Now not necessarily, but again the country would 363 00:19:00,880 --> 00:19:03,119 Speaker 1: remain occupied. And what we don't want is another frozen 364 00:19:03,160 --> 00:19:06,720 Speaker 1: conflict like we have in Georgia or Moldova. So the 365 00:19:06,800 --> 00:19:08,919 Speaker 1: Ukrainians have the momentum right now. We need to supply them. 366 00:19:08,960 --> 00:19:11,240 Speaker 1: And you're right, put And strategy is to weait us out. 367 00:19:11,280 --> 00:19:14,800 Speaker 1: I mean, that's why he is. He is hammering uh 368 00:19:15,280 --> 00:19:20,280 Speaker 1: Ukrainian cities, infrastructure, energy resources with ballistic missiles and drones. 369 00:19:20,320 --> 00:19:22,600 Speaker 1: He wants to break the back, break the will of 370 00:19:22,680 --> 00:19:25,399 Speaker 1: the Ukrainian people. We now see he's putting in barbo 371 00:19:25,480 --> 00:19:27,480 Speaker 1: if you will, on countries that put a price cap 372 00:19:27,520 --> 00:19:29,919 Speaker 1: on oil. He wants to freeze them out, frees us 373 00:19:29,920 --> 00:19:32,359 Speaker 1: out a little bit. Also, he is playing for time, 374 00:19:32,400 --> 00:19:34,720 Speaker 1: thinking that we will we will wobble, we will weaken, 375 00:19:35,000 --> 00:19:36,560 Speaker 1: and look, there's some truth to that in the past, 376 00:19:36,680 --> 00:19:38,840 Speaker 1: we've seen that. So it's important that we hold on. 377 00:19:38,920 --> 00:19:41,520 Speaker 1: But at the same time give Ukraine what they need 378 00:19:41,560 --> 00:19:43,320 Speaker 1: to win. They have the will, they have, the courage, 379 00:19:43,359 --> 00:19:46,000 Speaker 1: they had the resolve. They've been showing a great deal 380 00:19:46,040 --> 00:19:48,000 Speaker 1: of grit and success on the battle field. We need 381 00:19:48,040 --> 00:19:50,520 Speaker 1: to help enable that. How important our drones in this 382 00:19:50,600 --> 00:19:53,320 Speaker 1: ca battle on both sides, the drone technology and of 383 00:19:53,359 --> 00:19:56,080 Speaker 1: course counter drone technology as well, critically important. But you 384 00:19:56,119 --> 00:19:58,440 Speaker 1: see the Ukrainians not using them to conduct long range 385 00:19:58,480 --> 00:20:02,159 Speaker 1: strikes hundreds of miles in the Russian territory to attack 386 00:20:02,240 --> 00:20:05,960 Speaker 1: air fields from which Russians are launching bombers, so they're 387 00:20:06,040 --> 00:20:08,239 Speaker 1: using the great skill. And of course the Russians are 388 00:20:08,280 --> 00:20:12,280 Speaker 1: using the Iranian drones at the pummel uh Ukrainian infrastructure, 389 00:20:12,320 --> 00:20:14,560 Speaker 1: so we need to give them the means to provide 390 00:20:15,119 --> 00:20:18,159 Speaker 1: adequate air defenses against those so that again we can 391 00:20:18,200 --> 00:20:23,160 Speaker 1: protect the Sivellans in Ukraine and Silvellian infrastructure and that's 392 00:20:23,160 --> 00:20:26,200 Speaker 1: form a defense secretary market Askeper is speaking to David 393 00:20:26,240 --> 00:20:29,640 Speaker 1: weston Bloomberg's Balance of Power. You can catch that show 394 00:20:29,680 --> 00:20:33,280 Speaker 1: weekdays at neon Bloomberg Radio and Television. Come I up 395 00:20:33,280 --> 00:20:37,320 Speaker 1: next this morning's top stories, plus your local headlines, and 396 00:20:37,800 --> 00:20:40,760 Speaker 1: check on the markets right now ahead of the cash 397 00:20:40,800 --> 00:20:44,800 Speaker 1: open down Futures sixties six points higher. First, let's get 398 00:20:44,800 --> 00:20:47,359 Speaker 1: a look at today's Bloomberg weather for a cast, and 399 00:20:47,520 --> 00:20:50,879 Speaker 1: to do that for us, here's Rob Caroline. Some clowning. 400 00:20:50,920 --> 00:20:53,080 Speaker 1: This will be drifting down from the north and west today, 401 00:20:53,119 --> 00:20:55,600 Speaker 1: but we should see some sunshine through those clouds. Temperatures 402 00:20:55,640 --> 00:20:59,120 Speaker 1: up to fifty this afternoon, apparently cloudy over night thirty 403 00:20:59,160 --> 00:21:01,240 Speaker 1: to thirty five and the city twenties in the suburbs 404 00:21:01,640 --> 00:21:04,520 Speaker 1: partial sun close to fifty tomorrow. The outlook for Saturday 405 00:21:04,560 --> 00:21:06,840 Speaker 1: cloudy with rain late today fifty to fifty five. It 406 00:21:06,880 --> 00:21:09,160 Speaker 1: looks rainy for New Year's Eve that rain. Who's out 407 00:21:09,160 --> 00:21:12,159 Speaker 1: Sunday we turned partly sunny. I'm Rob Carolyn with your 408 00:21:12,160 --> 00:21:18,600 Speaker 1: weekend forecast on Bloomberg eleven three oh broadcasting live from 409 00:21:18,600 --> 00:21:22,399 Speaker 1: the Bloomberg Interactive Broker Studio in New York Bloomberg in 410 00:21:22,480 --> 00:21:26,440 Speaker 1: Living Free On to Washington, d C, Bloomberg one to Boston, 411 00:21:26,560 --> 00:21:30,359 Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg sixty 412 00:21:30,480 --> 00:21:33,320 Speaker 1: to the country, Sirius XM H one nine ten, and 413 00:21:33,359 --> 00:21:37,719 Speaker 1: around the globe, the Bloomberg Business and Bloomberg Radio dot com. 414 00:21:37,720 --> 00:21:46,200 Speaker 1: This is Bloomberg Daybreak. It's coming up on six thirty 415 00:21:46,320 --> 00:21:49,520 Speaker 1: Wall Street. Good morning. I'm John Tucker and I'm Karen Moscow. 416 00:21:49,640 --> 00:21:52,119 Speaker 1: We are nearly three hours away from the open of 417 00:21:52,240 --> 00:21:54,280 Speaker 1: US trading. Time for the five Things that you need 418 00:21:54,320 --> 00:21:56,200 Speaker 1: to know to start your day, brought to you by 419 00:21:56,280 --> 00:22:00,119 Speaker 1: Innovation Refunds. Your business may be eligible to receive a 420 00:22:00,200 --> 00:22:04,240 Speaker 1: payroll tax refund. The application takes around eight minutes eight 421 00:22:04,280 --> 00:22:07,000 Speaker 1: minutes or less to see if you're small to medium 422 00:22:07,000 --> 00:22:09,919 Speaker 1: sized business may be eligible for a refund of up 423 00:22:09,920 --> 00:22:13,240 Speaker 1: to twenty six thousand dollars per employee kept on the 424 00:22:13,240 --> 00:22:16,640 Speaker 1: payroll during the pandemic. Find out it get refunds dot 425 00:22:16,680 --> 00:22:20,080 Speaker 1: com first. As COVID cases climbed in China, the US 426 00:22:20,119 --> 00:22:23,360 Speaker 1: plans to require COVID testing for travelers from the country. 427 00:22:23,640 --> 00:22:26,679 Speaker 1: Officials are concerned about new variants in China's lack of 428 00:22:26,680 --> 00:22:31,000 Speaker 1: transparency with COVID data. Italy will also begin testing arrivals 429 00:22:31,000 --> 00:22:33,760 Speaker 1: from China and wants other European countries to do the same. 430 00:22:33,840 --> 00:22:35,960 Speaker 1: And we have news on the war in Ukraine this morning. 431 00:22:35,960 --> 00:22:39,240 Speaker 1: The Russian Foreign Ministers Sergey lam Roth says Moscow will 432 00:22:39,320 --> 00:22:42,520 Speaker 1: not enter into negotiations to end the war. This comes 433 00:22:42,560 --> 00:22:46,080 Speaker 1: as Russia launched another missile barrage of major cities in Ukraine. 434 00:22:46,480 --> 00:22:50,200 Speaker 1: The former Defense Secretary Mark Asper says the US can 435 00:22:50,280 --> 00:22:53,879 Speaker 1: and should provide further support for Ukraine. It's important that 436 00:22:53,880 --> 00:22:56,480 Speaker 1: we hold off at the same time give Ukraine what 437 00:22:56,560 --> 00:22:58,240 Speaker 1: they need to win. They have the will, they have, 438 00:22:58,280 --> 00:23:00,760 Speaker 1: the courage, they had, the resolved they and showing a 439 00:23:00,840 --> 00:23:03,000 Speaker 1: great deal of grit and success on the battlefield. We 440 00:23:03,040 --> 00:23:06,119 Speaker 1: need to help enable that. Former Defense Secretary Market Asper 441 00:23:06,200 --> 00:23:09,360 Speaker 1: speaking with David Weston on Bloomberg's Balance of Power. Catch 442 00:23:09,480 --> 00:23:12,399 Speaker 1: the show weekdays at noon on Bloomberg Radio and Television. 443 00:23:12,720 --> 00:23:15,000 Speaker 1: Well to Ball Street Now John where layoffs are front 444 00:23:15,000 --> 00:23:17,480 Speaker 1: and center. Goldman Sax is working on a fresh round 445 00:23:17,480 --> 00:23:20,720 Speaker 1: of staff cuts. CEO David Solomon made the announcement and 446 00:23:20,800 --> 00:23:23,360 Speaker 1: as you're on message to staff, saying the cuts will 447 00:23:23,359 --> 00:23:25,520 Speaker 1: be unveiled in a matter of weeks and looking at 448 00:23:25,560 --> 00:23:28,760 Speaker 1: markets right now, US futures they are higher following two 449 00:23:28,800 --> 00:23:32,320 Speaker 1: days of losses. COVID concerns out of China weighing on 450 00:23:32,359 --> 00:23:34,840 Speaker 1: some of the sentiment, but Jonathan Gollub, head of US 451 00:23:34,880 --> 00:23:38,760 Speaker 1: equity strategy at Credit sweets so steady wages can provide 452 00:23:38,840 --> 00:23:42,160 Speaker 1: some stability next year. Wages don't look like they're gonna 453 00:23:42,200 --> 00:23:44,800 Speaker 1: fall as much for the average consumer. They're going to 454 00:23:44,880 --> 00:23:48,280 Speaker 1: get a stronger wage increase. The things they buy are 455 00:23:48,320 --> 00:23:49,960 Speaker 1: and we are going to go off as much as 456 00:23:50,000 --> 00:23:54,639 Speaker 1: their wages, and yet jobs are really plentiful. Jonathan Gollub 457 00:23:54,720 --> 00:23:57,400 Speaker 1: with Credit sweet says he thinks there will be positive 458 00:23:57,400 --> 00:24:01,280 Speaker 1: market movement early next year. And travel meltdown has stranded 459 00:24:01,320 --> 00:24:04,120 Speaker 1: thousands of passengers has led to more flight cancelations. John 460 00:24:04,119 --> 00:24:07,359 Speaker 1: Bloomberg Steve Rappaport joins US Live with more. Steve, good Morning, 461 00:24:07,400 --> 00:24:10,560 Speaker 1: Good Morning, Karen, and John's Southwest blames bad weather for 462 00:24:10,600 --> 00:24:13,480 Speaker 1: its problems, but aviation experts say snow was only one 463 00:24:13,520 --> 00:24:16,080 Speaker 1: of the elements that created the perfect storm. They point 464 00:24:16,080 --> 00:24:18,840 Speaker 1: to issues like tight turnaround times, faulty phone systems, and 465 00:24:18,840 --> 00:24:22,760 Speaker 1: outdated software. Analysts and unions warned for years that Southwest 466 00:24:22,800 --> 00:24:26,040 Speaker 1: needed to invest in new technology. Those warnings proved costly, 467 00:24:26,240 --> 00:24:28,960 Speaker 1: as Southwest Ground did more than twenty three dred additional 468 00:24:29,000 --> 00:24:31,840 Speaker 1: flights today, But Grace guys look to be clearing up 469 00:24:31,840 --> 00:24:34,560 Speaker 1: for the carrier. So far, Southwest only canceled a few 470 00:24:34,600 --> 00:24:37,280 Speaker 1: dozen flights for tomorrow. That's according to the flight tracking 471 00:24:37,280 --> 00:24:39,760 Speaker 1: site flight Aware Live in New York. I'm Steve Rappaport 472 00:24:39,800 --> 00:24:42,040 Speaker 1: Bloomberg Day Break. All right, Steve, thank you. That's the 473 00:24:42,119 --> 00:24:44,440 Speaker 1: five things you need to notice start your day. Brought 474 00:24:44,480 --> 00:24:54,320 Speaker 1: to you Vy Innovation refunds and this is Bloomberg. Thanks, 475 00:24:54,960 --> 00:24:57,160 Speaker 1: Wall Streets. Time to bring in Michael Barr with more 476 00:24:57,400 --> 00:24:59,639 Speaker 1: what else is going on in New York and a 477 00:25:00,000 --> 00:25:02,000 Speaker 1: on the world, John, Thank you very much. Sarah. The 478 00:25:02,080 --> 00:25:05,120 Speaker 1: National Guard went door to door in parts of Buffalo 479 00:25:05,200 --> 00:25:07,760 Speaker 1: to check on people who lost power during the area 480 00:25:07,760 --> 00:25:11,560 Speaker 1: as deadly as winter storm in decades. Already, about three 481 00:25:11,560 --> 00:25:14,000 Speaker 1: dozen deaths have been reported in western New York from 482 00:25:14,000 --> 00:25:17,639 Speaker 1: the blizzard. Buffalo Mayor Byron Brown again, as you know, 483 00:25:17,840 --> 00:25:23,080 Speaker 1: this was a historic storm, probably the worst storm that 484 00:25:23,160 --> 00:25:27,480 Speaker 1: the city has seen in over fifty years, and perhaps 485 00:25:28,440 --> 00:25:33,920 Speaker 1: maybe the worst storm in recorded history. UH. Since these 486 00:25:33,960 --> 00:25:37,560 Speaker 1: storms have been tracked, Mayor Brown says a travel ban 487 00:25:37,720 --> 00:25:41,320 Speaker 1: has been lifted. Congressman elect George Santos of New York 488 00:25:41,400 --> 00:25:45,639 Speaker 1: is under investigation by Long Island prosecutors. Revelation surface that 489 00:25:45,720 --> 00:25:49,679 Speaker 1: the now embattled Republican line about his heritage, education, and 490 00:25:49,800 --> 00:25:54,040 Speaker 1: professional pedigree as he campaigned for office. Nassau County District 491 00:25:54,040 --> 00:25:57,879 Speaker 1: Attorney and Donnelly, also a Republicans, said the fabrications and 492 00:25:57,960 --> 00:26:02,360 Speaker 1: inconsistencies were nothing sort of stunning. The US State Department 493 00:26:02,359 --> 00:26:05,920 Speaker 1: has approved a possible military sale to Taipei for anti 494 00:26:06,000 --> 00:26:10,719 Speaker 1: tank munition laying systems and related equipment. It's for an 495 00:26:10,800 --> 00:26:14,000 Speaker 1: estimated cost of a hundred eighty million dollars. It's opening 496 00:26:14,040 --> 00:26:16,840 Speaker 1: day to sell legal pot in New York. The first 497 00:26:16,880 --> 00:26:20,119 Speaker 1: dispensary is in Manhattan at a housing works Kinnabis company 498 00:26:20,160 --> 00:26:23,199 Speaker 1: in Greenwich Village. Attorney Michael Bass is co chair of 499 00:26:23,200 --> 00:26:27,120 Speaker 1: the Cannabis Law Group at Abram's instrument. This is the 500 00:26:27,200 --> 00:26:32,359 Speaker 1: first dispenser of a program that is still in its infancy, 501 00:26:32,720 --> 00:26:35,679 Speaker 1: and I suspect the lines are going to be pretty 502 00:26:35,680 --> 00:26:40,800 Speaker 1: long for some time to come. UH as this program 503 00:26:40,840 --> 00:26:44,120 Speaker 1: grows and grows attorney Michael Bass says there are limitations 504 00:26:44,119 --> 00:26:46,840 Speaker 1: in terms of grams announces to what you can purchase 505 00:26:47,119 --> 00:26:49,320 Speaker 1: Global News twenty four hours a day on air and 506 00:26:49,400 --> 00:26:52,920 Speaker 1: on Bloomber Quick Take, powered by more than journalist analysts, 507 00:26:52,920 --> 00:26:56,560 Speaker 1: more than a d twenty countries. Michael bar this is Bloomberg, John, Michael, 508 00:26:56,560 --> 00:27:02,080 Speaker 1: thank you. You guys have six third three all Wall Street. Yea, 509 00:27:02,240 --> 00:27:04,760 Speaker 1: that is time for the Bloomberg Sports Report. Big brought 510 00:27:04,800 --> 00:27:09,920 Speaker 1: you by your TRN State Counties Heelers. Yeah. Thanks John. 511 00:27:09,920 --> 00:27:12,720 Speaker 1: That's the first NBA team this season to real off 512 00:27:12,800 --> 00:27:15,440 Speaker 1: ten consecutive wins. They held on in Atlanta, one of eight, 513 00:27:15,480 --> 00:27:17,200 Speaker 1: one of seven. The Hops MR game when he shot 514 00:27:17,200 --> 00:27:19,919 Speaker 1: at the Nkyrie irving twenty eight points. Kevin ran at 515 00:27:19,960 --> 00:27:22,960 Speaker 1: twenty six with sixteen rebounds. It's the Nets longest win 516 00:27:23,040 --> 00:27:26,560 Speaker 1: streak since two thousand six. Nicks are in San Antonio 517 00:27:26,680 --> 00:27:29,399 Speaker 1: tonight the Rangers visit Tampa Bay. The Devil's just lost 518 00:27:29,400 --> 00:27:32,320 Speaker 1: at home to the NHL leading Bruins three to one. 519 00:27:32,359 --> 00:27:34,679 Speaker 1: College Troops St. John's lost to the Big East Xavier 520 00:27:34,800 --> 00:27:38,560 Speaker 1: Fordham's Atlantic ten opener a home lost to Davidson. Yukon 521 00:27:39,080 --> 00:27:41,560 Speaker 1: beat Villanova. The Huskies are fourteen and oh they are 522 00:27:41,640 --> 00:27:44,840 Speaker 1: ranked second in the country. Quarterback news Derek Carr benched 523 00:27:44,880 --> 00:27:47,359 Speaker 1: by the Raiders. He's been their starter for nine years 524 00:27:47,359 --> 00:27:51,400 Speaker 1: with fourteen interceptions this season. Jared Stidham will replace him, 525 00:27:51,400 --> 00:27:53,840 Speaker 1: and this figures the lead to Las Vegas moving car 526 00:27:53,920 --> 00:27:56,359 Speaker 1: in the off season and Jets could be looking for QUB. 527 00:27:56,920 --> 00:28:00,159 Speaker 1: Washington is going back to Carson Wins replacing too or 528 00:28:00,160 --> 00:28:02,760 Speaker 1: Heina Key Wentz hasn't started since Week six, and the 529 00:28:02,760 --> 00:28:05,240 Speaker 1: Commanders are part of that battle for the last two 530 00:28:05,320 --> 00:28:07,680 Speaker 1: NFC wild card spots. Miami and New England in it 531 00:28:07,840 --> 00:28:09,840 Speaker 1: for one wild card in the a f C. They 532 00:28:09,840 --> 00:28:12,800 Speaker 1: placed Sunday in Foxboro. The Dolphins QB will be Teddy 533 00:28:12,840 --> 00:28:16,600 Speaker 1: Bridgewater to a Tamabaloa has his second concussion of the season. 534 00:28:16,600 --> 00:28:18,800 Speaker 1: They'll play the Pin Stripe Bowl at Yankee Stadium this 535 00:28:18,880 --> 00:28:22,760 Speaker 1: afternoon Syracuse against Minnesota. The Red Sox of st seven 536 00:28:22,840 --> 00:28:25,760 Speaker 1: year old Corey Cloobury want to Cy Young's with Cleveland. 537 00:28:26,000 --> 00:28:28,080 Speaker 1: He spent this past season with Tampa Bay through a 538 00:28:28,119 --> 00:28:32,320 Speaker 1: no hitter in the Yankees. John stash Award Sports John, 539 00:28:32,440 --> 00:28:34,720 Speaker 1: all Right, thanks John. The Bloomberg Sports Report. Brown you 540 00:28:34,800 --> 00:28:37,359 Speaker 1: buy Audie, don't let someone else drive off in the 541 00:28:37,359 --> 00:28:40,400 Speaker 1: Audi model you've always wanted. Visit your local Tri state 542 00:28:40,440 --> 00:28:43,280 Speaker 1: Audi dealer to get behind the wheel of yours today, 543 00:28:43,400 --> 00:28:47,480 Speaker 1: or visit Audie Offers dot com for more information. Right now, 544 00:28:47,600 --> 00:28:52,800 Speaker 1: SMP futures up seventeen. It's now six thirty fives on 545 00:28:52,920 --> 00:28:55,440 Speaker 1: Wall Street. Bloomberg Radio is on the year from San 546 00:28:55,480 --> 00:28:59,040 Speaker 1: Francisco to New York, London to Hong Kong. Let's check 547 00:28:59,080 --> 00:29:00,920 Speaker 1: in now with our global news team for some of 548 00:29:00,960 --> 00:29:03,640 Speaker 1: the top stories heard on our three hundred at Philliget 549 00:29:03,800 --> 00:29:10,600 Speaker 1: radio stations around the world. I'm Steve Potosk. On w 550 00:29:11,000 --> 00:29:14,480 Speaker 1: h S and Louisville, We're talking about some negative online 551 00:29:14,480 --> 00:29:17,760 Speaker 1: reactions to a test run of Taco Bell's plans for 552 00:29:17,920 --> 00:29:22,040 Speaker 1: new burritos. I'm Jeff Bellinger. And on Cogo in San Diego, 553 00:29:22,120 --> 00:29:25,680 Speaker 1: I'll be talking about how Starbucks customers from California and 554 00:29:25,760 --> 00:29:30,040 Speaker 1: New York accused the coffee chain of deceptively advertising its 555 00:29:30,040 --> 00:29:33,440 Speaker 1: sprouted grain bagel and Kimberly Adams. And on w DZ 556 00:29:33,560 --> 00:29:36,760 Speaker 1: in Boston, I'll be reporting on Goldman Sachs employees facing 557 00:29:36,760 --> 00:29:39,680 Speaker 1: a new year with new job cuts. I'm Stephen Carol 558 00:29:39,720 --> 00:29:42,360 Speaker 1: and Bloomberg DAB Radio in London. We've been reporting on 559 00:29:42,400 --> 00:29:46,200 Speaker 1: the European countries considering more restrictions on travelers from China 560 00:29:46,440 --> 00:29:51,120 Speaker 1: as Beijing's as its COVID rules, and those are some 561 00:29:51,240 --> 00:29:53,840 Speaker 1: of these stories are twenty seven hundred Bloomberg journalists and 562 00:29:53,920 --> 00:29:58,160 Speaker 1: analysts are working on this morning around the world. It 563 00:29:58,480 --> 00:30:00,880 Speaker 1: is now six thirty seven on Wall Street. That's time 564 00:30:00,880 --> 00:30:03,840 Speaker 1: for daily Bloomberg Real Estate Report. And here with that 565 00:30:03,920 --> 00:30:08,320 Speaker 1: it's bloombergs Denys Fella Greeny. Inflation is usually pretty good 566 00:30:08,360 --> 00:30:11,400 Speaker 1: for real estate investments, but Rich Hill, head of real 567 00:30:11,520 --> 00:30:15,360 Speaker 1: estate strategy and Research at count and Steers Capital Management, says, 568 00:30:15,400 --> 00:30:18,440 Speaker 1: not this time. What is challenging for real estate stagflation. 569 00:30:18,520 --> 00:30:21,160 Speaker 1: So what is stagflation? It's it's an environment where interest 570 00:30:21,240 --> 00:30:24,080 Speaker 1: rates are rising and growth is slowing. That's exactly what 571 00:30:24,200 --> 00:30:26,600 Speaker 1: played out for most of two thousand and twenty two, 572 00:30:26,800 --> 00:30:29,960 Speaker 1: where the Fed had to raise interest rates to combat 573 00:30:30,000 --> 00:30:32,520 Speaker 1: inflation that was at its highest level since in nten eight. 574 00:30:32,680 --> 00:30:35,040 Speaker 1: On the other hand, Hill says things are looking up 575 00:30:35,040 --> 00:30:39,160 Speaker 1: for real estate returns in three because we see a 576 00:30:39,160 --> 00:30:42,440 Speaker 1: backdrop where growth is slowing still in two thousand twenty three, 577 00:30:42,480 --> 00:30:44,800 Speaker 1: but rache are beginning to come down, so we would 578 00:30:44,800 --> 00:30:48,120 Speaker 1: call that a stagnationary backdrop. As you transition from stagflation 579 00:30:48,160 --> 00:30:51,240 Speaker 1: to stagnation, that's a much better backdrop for for for 580 00:30:51,320 --> 00:30:54,479 Speaker 1: real estate in general. Economist way survey'd say housing starts 581 00:30:54,520 --> 00:30:57,920 Speaker 1: and building permits probably continue to fall in December, and 582 00:30:57,960 --> 00:31:00,760 Speaker 1: that's the Bloomberg real estate port. I'm to these pelogreny 583 00:31:01,680 --> 00:31:05,480 Speaker 1: and investors betting against Tesla are getting a big bonanza 584 00:31:05,640 --> 00:31:08,680 Speaker 1: they've been waiting for, with the electric vehicle maker center 585 00:31:08,680 --> 00:31:13,160 Speaker 1: recording its worst annual performance on record. Short sellers in 586 00:31:13,200 --> 00:31:16,520 Speaker 1: the company these are parish investors that stand again when 587 00:31:16,600 --> 00:31:19,480 Speaker 1: the price of an asset falls. Their poised to rate 588 00:31:19,640 --> 00:31:24,000 Speaker 1: market to market profits of about seventeen billion dollars, making 589 00:31:24,000 --> 00:31:28,000 Speaker 1: Tesla the most profitable short trade of the year. This 590 00:31:28,040 --> 00:31:32,040 Speaker 1: is all according to data from S three Partners. Tesla 591 00:31:32,120 --> 00:31:36,280 Speaker 1: has a tumbled more than forty two percent in December alone, 592 00:31:36,440 --> 00:31:40,280 Speaker 1: driving into a loss of sixty eight percent this year. Well, 593 00:31:40,280 --> 00:31:43,280 Speaker 1: this morning, ahead of the market opened Tesla in the 594 00:31:43,320 --> 00:31:47,160 Speaker 1: pre market right now up four point eight percent. You're 595 00:31:47,200 --> 00:31:54,640 Speaker 1: listening to Bloomberg Daybreak Live from the Bloomberg in directed 596 00:31:54,680 --> 00:31:57,840 Speaker 1: Berger Studios. Is this Bloomberg Daybreak for a Thursday, December 597 00:31:57,880 --> 00:32:02,160 Speaker 1: twenty nine coming up a shur new restrictions of travelers 598 00:32:02,200 --> 00:32:05,800 Speaker 1: from China and the country scales back COVID policies. Gullman 599 00:32:05,880 --> 00:32:08,200 Speaker 1: Ready for a fresh round of layoffs in the new year. 600 00:32:08,480 --> 00:32:11,040 Speaker 1: Markets look for a Santa Claus rally. It's a closed 601 00:32:11,040 --> 00:32:15,960 Speaker 1: two and Russia rules out peace talks with Ukraine. Prosecutors 602 00:32:15,960 --> 00:32:19,640 Speaker 1: are investigating New York Congressman elect Santos after false claims 603 00:32:19,680 --> 00:32:22,880 Speaker 1: about his background. Plus the dig out continues in Buffalo. 604 00:32:23,200 --> 00:32:26,280 Speaker 1: I'm Michael Blarr More Ahead, I'm John Stash Howard Sports 605 00:32:26,280 --> 00:32:28,280 Speaker 1: make it ten straight for the Nets at one point 606 00:32:28,280 --> 00:32:31,080 Speaker 1: when Atlanta the Devil's lost to the Bruins of Big East. 607 00:32:31,120 --> 00:32:36,720 Speaker 1: Loss for st John. That's all strady Ahead on Bloomberg 608 00:32:36,760 --> 00:32:41,840 Speaker 1: Daybreak on Bloomberg eleven three, on New York, Bloomberg nine one, Washington, 609 00:32:41,960 --> 00:32:46,120 Speaker 1: d C Bloomberg one oh six one, Boston, Bloomberg nine sixties, 610 00:32:46,120 --> 00:32:50,320 Speaker 1: San Francisco, Syrius Exam one nineteen, and around the world 611 00:32:50,400 --> 00:32:57,560 Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business app. Heay, 612 00:32:57,560 --> 00:33:00,320 Speaker 1: Good morning, I'm John Tucker and I'm Karen Moss. Scale 613 00:33:00,400 --> 00:33:02,800 Speaker 1: US DO index futures on the rise this morning. We 614 00:33:02,880 --> 00:33:04,840 Speaker 1: check the markets all day long here on Bloomberg with 615 00:33:05,000 --> 00:33:08,080 Speaker 1: SNP futures have four tens of upper cent or sixteen points. 616 00:33:08,120 --> 00:33:10,360 Speaker 1: Down futures have two tens of upper cent or sixty 617 00:33:10,400 --> 00:33:13,160 Speaker 1: nine points, and NAS day futures have seven tens of 618 00:33:13,280 --> 00:33:16,600 Speaker 1: upper cent or seventy six points. John and Carol, Let's 619 00:33:16,600 --> 00:33:20,400 Speaker 1: begin with new travel restrictions targeting China as COVID cases 620 00:33:20,400 --> 00:33:23,120 Speaker 1: climb of the country. The US plans to require COVID 621 00:33:23,120 --> 00:33:26,760 Speaker 1: testing for travelers coming from China. Let's get the update 622 00:33:26,800 --> 00:33:29,920 Speaker 1: in this report this morning from Bloomberg's and Baxter. The 623 00:33:30,000 --> 00:33:33,160 Speaker 1: concern comes as cases spiral upward in China and with 624 00:33:33,240 --> 00:33:37,600 Speaker 1: China not releasing data the US as transparency has disappeared. 625 00:33:37,920 --> 00:33:40,680 Speaker 1: Health officials say they are concerned about the emergence of 626 00:33:40,720 --> 00:33:44,200 Speaker 1: new variants, which tend to thrive with so many new cases. 627 00:33:44,440 --> 00:33:47,480 Speaker 1: The US announcement came after news reports of two flights 628 00:33:47,520 --> 00:33:50,680 Speaker 1: from China into Milan, Italy, where more than half the 629 00:33:50,720 --> 00:33:55,000 Speaker 1: passengers tested positive. The passengers will be required to test 630 00:33:55,040 --> 00:33:58,160 Speaker 1: two days before making their flight. The requirement goes into 631 00:33:58,160 --> 00:34:02,320 Speaker 1: effect January five, in San Francisco. I'm at Baxter Bloomberg 632 00:34:02,320 --> 00:34:04,160 Speaker 1: Gay Break. All right, and thank you well. We have 633 00:34:04,240 --> 00:34:07,120 Speaker 1: news on the war in Ukraine. This morning, Russian Foreign 634 00:34:07,120 --> 00:34:10,960 Speaker 1: Minister Sergei lav Rov says Moscow will not enter into 635 00:34:11,000 --> 00:34:14,080 Speaker 1: negotiations to end the war. The hard line stance comes 636 00:34:14,080 --> 00:34:17,840 Speaker 1: as Russia launched another missile barrage on major cities in Ukraine. 637 00:34:18,120 --> 00:34:21,440 Speaker 1: Former Defense Secretary Mark Esper tells us Moscow is digging 638 00:34:21,480 --> 00:34:24,000 Speaker 1: in for the long haul boot and strategies to wait 639 00:34:24,080 --> 00:34:26,480 Speaker 1: us out. I mean, that's why he is hammering uh 640 00:34:26,840 --> 00:34:31,880 Speaker 1: Ukrainian cities, infrastructure, energy resources with ballistic missiles and drones. 641 00:34:31,920 --> 00:34:34,239 Speaker 1: He wants to break the back, break the will of 642 00:34:34,280 --> 00:34:36,600 Speaker 1: the Ukrainian people. We now see he's putting up in 643 00:34:36,719 --> 00:34:38,799 Speaker 1: barbo if you will, on countries that put a price 644 00:34:38,840 --> 00:34:41,239 Speaker 1: cap on oil. He wants to freeze them out, free 645 00:34:41,400 --> 00:34:43,879 Speaker 1: us out a little bit. Also, he is playing for Todd, 646 00:34:44,000 --> 00:34:46,800 Speaker 1: thinking that we will wobble, we will weaken. Former Defense 647 00:34:46,800 --> 00:34:50,120 Speaker 1: Secretary Mark Esper spoke with David Weston on Bloomberg's Valance 648 00:34:50,160 --> 00:34:52,480 Speaker 1: of Power. Catch the show week days at noon on 649 00:34:52,520 --> 00:34:55,560 Speaker 1: Bloomberg Radio and Television. Yeah, let's turn to Wall Street 650 00:34:55,600 --> 00:34:58,640 Speaker 1: Now another sign of maybe an economic slowdown, Glook Golden 651 00:34:58,719 --> 00:35:02,040 Speaker 1: Sacks is work on a fresh round of staff cuts 652 00:35:02,320 --> 00:35:05,480 Speaker 1: at Bloomberg's. Charlie Pellett reports they're likely to come in 653 00:35:05,560 --> 00:35:09,280 Speaker 1: a matter of weeks. That word from CEO David Solomon 654 00:35:09,400 --> 00:35:13,480 Speaker 1: in his traditional year end message to staff, Solomon said, quote, 655 00:35:13,520 --> 00:35:17,560 Speaker 1: we are conducting a careful review, and while discussions are 656 00:35:17,560 --> 00:35:21,120 Speaker 1: still ongoing, we anticipate our head count reduction will take 657 00:35:21,160 --> 00:35:24,480 Speaker 1: place in the first half of January. He says there 658 00:35:24,520 --> 00:35:28,759 Speaker 1: are a variety of factors impacting the business landscape, including 659 00:35:28,960 --> 00:35:33,600 Speaker 1: tightening monetary conditions that are slowing down economic activity. Earlier 660 00:35:33,640 --> 00:35:36,280 Speaker 1: this month, sources said the firm may seek to eliminate 661 00:35:36,320 --> 00:35:39,239 Speaker 1: as much as eight percent of its workforce, or up 662 00:35:39,239 --> 00:35:42,880 Speaker 1: to four thousand jobs, to contain a slump in profit 663 00:35:43,040 --> 00:35:47,600 Speaker 1: and revenue in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie, 664 00:35:47,600 --> 00:35:50,120 Speaker 1: thank you about the markets. Now, US futures are higher, 665 00:35:50,200 --> 00:35:53,440 Speaker 1: led by technology shares following two days of losses. Concerns 666 00:35:53,440 --> 00:35:56,239 Speaker 1: are servicing over the end of Chinese COVID zero policies, 667 00:35:56,440 --> 00:35:59,240 Speaker 1: But Jonathan Golub, head of US Equity strategy at Credits 668 00:35:59,239 --> 00:36:02,440 Speaker 1: Suite sees positive signs for the new year. The market 669 00:36:02,520 --> 00:36:05,240 Speaker 1: is of the belief that no matter what the FED says, 670 00:36:05,280 --> 00:36:08,280 Speaker 1: the likelihood is that the FED is going to ultimately 671 00:36:08,280 --> 00:36:11,960 Speaker 1: get closer to their inflation target. And that's a positive, 672 00:36:11,960 --> 00:36:15,000 Speaker 1: and that's what the market is ultimately fixated on. And 673 00:36:15,040 --> 00:36:17,680 Speaker 1: I think that's why stocks are gonna do pretty pretty 674 00:36:17,680 --> 00:36:20,640 Speaker 1: well over the next several months. Trying to thank Gala, 675 00:36:20,680 --> 00:36:23,840 Speaker 1: but Credit Sue says steady wages can provide some stability 676 00:36:23,840 --> 00:36:29,000 Speaker 1: in three to overseas. Stocks in Asia dropped in unison overnight. 677 00:36:29,280 --> 00:36:31,759 Speaker 1: Let's get the recap now from Bloomberg Day Breck Asia 678 00:36:31,800 --> 00:36:35,400 Speaker 1: anchor Brian Curtis. In Hong Kong, stocks in Asia tumbled 679 00:36:35,400 --> 00:36:38,920 Speaker 1: on new concerns that China's reopening would spread COVID cases 680 00:36:38,960 --> 00:36:41,640 Speaker 1: around the world. There may be a day that investors 681 00:36:41,640 --> 00:36:45,040 Speaker 1: embraced the reopening, but today was not that day. Equity 682 00:36:45,040 --> 00:36:48,640 Speaker 1: benchmarks in Japan, Hong Kong, Australia, and South Korea all 683 00:36:48,719 --> 00:36:52,919 Speaker 1: falling around one percent. Australian tenure government bond yields rose, 684 00:36:53,400 --> 00:36:56,320 Speaker 1: that Donna was weaker, and the yen put on games. 685 00:36:56,680 --> 00:36:59,760 Speaker 1: You know, Hong Kong. Brian Curtis Sploomberg day Break. All right, Brian, 686 00:36:59,840 --> 00:37:01,560 Speaker 1: thank you, But we also have news out of the 687 00:37:01,560 --> 00:37:04,000 Speaker 1: Bank of Japan this morning, the b o J announcing 688 00:37:04,000 --> 00:37:08,040 Speaker 1: two additional rounds of unscheduled bond purchase operations. The move 689 00:37:08,160 --> 00:37:10,399 Speaker 1: fights back against traders betting the b o J will 690 00:37:10,440 --> 00:37:13,600 Speaker 1: further relax it's yield curve control policy. While taking a 691 00:37:13,600 --> 00:37:15,640 Speaker 1: look at the end right now still rising against the 692 00:37:15,680 --> 00:37:18,480 Speaker 1: dollar at one thirty three point eight two I. Meanwhile, 693 00:37:18,520 --> 00:37:21,919 Speaker 1: oil is lower this morning, being time to concerns over 694 00:37:22,040 --> 00:37:25,279 Speaker 1: COVID cases surgeon in China. As we look at Brent 695 00:37:25,320 --> 00:37:29,160 Speaker 1: crew the international benchmark right now down a dollar seven 696 00:37:29,200 --> 00:37:33,360 Speaker 1: of barrel at eight two nine. Well. Travel turmoil continues 697 00:37:33,440 --> 00:37:36,680 Speaker 1: again this morning, John. The travel miltdown that's stranded thousands 698 00:37:36,680 --> 00:37:40,680 Speaker 1: of passengers has led to more flight cancelations at Southwest Ploomberg. 699 00:37:40,719 --> 00:37:43,720 Speaker 1: Steve Rappaport joins US Live with more. Steve, good morning, 700 00:37:43,880 --> 00:37:47,160 Speaker 1: Good morning, Karen and John. As Southwest grounds more than 701 00:37:47,200 --> 00:37:50,880 Speaker 1: twenty dred additional flights today, analysts and unions say this 702 00:37:51,040 --> 00:37:53,799 Speaker 1: nightmare could have been prevented. They warned for years the 703 00:37:53,800 --> 00:37:56,279 Speaker 1: carrier was playing a dangerous game by not investing in 704 00:37:56,320 --> 00:38:00,120 Speaker 1: new technology. Those prophecies proved a disaster for Southwest as 705 00:38:00,120 --> 00:38:03,160 Speaker 1: it struggles to recover from last week's storm. Rival airlines 706 00:38:03,200 --> 00:38:05,640 Speaker 1: are mostly back to normal operations. The White House and 707 00:38:05,719 --> 00:38:08,359 Speaker 1: lawmakers want to know why Southwest can't pick up the pace. 708 00:38:08,719 --> 00:38:11,200 Speaker 1: Live in New York, I'm Steve Rapp, report Bloomberg Day Break. 709 00:38:11,239 --> 00:38:13,200 Speaker 1: All right, thanks Steve, and we have a couple of 710 00:38:13,200 --> 00:38:16,080 Speaker 1: notes this morning on Elon buss companies. Let's start with Twitter, 711 00:38:16,239 --> 00:38:21,560 Speaker 1: which is restored service hours after thousands of users reported glitches. 712 00:38:21,600 --> 00:38:24,319 Speaker 1: More than nine thousand users from San Francisco to Hong 713 00:38:24,400 --> 00:38:30,080 Speaker 1: Kong reported problems accessing the service, and Elon mus telling 714 00:38:30,120 --> 00:38:33,840 Speaker 1: Tesla employees to ignore it. Stock market craziness, as he 715 00:38:33,920 --> 00:38:37,200 Speaker 1: puts it. His comments come as analysts turned bullish on 716 00:38:37,320 --> 00:38:40,760 Speaker 1: the stock. Morgan Stanley this morning says d rating um 717 00:38:40,840 --> 00:38:45,040 Speaker 1: in the company stock has created a buying opportunity. Most 718 00:38:45,120 --> 00:38:47,759 Speaker 1: active in the pre market right now Tesla at four 719 00:38:47,800 --> 00:38:54,520 Speaker 1: point eight percent. This is Bloomberg and it brings us 720 00:38:54,560 --> 00:38:57,799 Speaker 1: to six or seven of Wall Street. And let's get 721 00:38:57,800 --> 00:39:00,600 Speaker 1: the news from around the world and in New York. 722 00:39:00,640 --> 00:39:02,760 Speaker 1: And for that we see good morning to Bloomberg's Michael 723 00:39:02,760 --> 00:39:05,600 Speaker 1: Barr John, thank you very much. Buffalo lifted a travel 724 00:39:05,680 --> 00:39:08,440 Speaker 1: ban just after midnight. It was put in place in 725 00:39:08,480 --> 00:39:11,120 Speaker 1: the aftermath of the Christmas weekend blizzard that left the 726 00:39:11,120 --> 00:39:14,240 Speaker 1: city buried under more than four feet of snow. Mayor 727 00:39:14,320 --> 00:39:18,720 Speaker 1: Byron Brown conditions are such that the driving band can 728 00:39:18,760 --> 00:39:23,640 Speaker 1: be lifted. We're going to keep a travel advisory in 729 00:39:23,760 --> 00:39:27,880 Speaker 1: place because there will still be heavy equipment doing work. 730 00:39:28,400 --> 00:39:31,960 Speaker 1: Dozens of Buffalo area residents died in the storm. New 731 00:39:32,040 --> 00:39:36,719 Speaker 1: York Congressman elect George Santos is under increasing scrutiny. Prosecutors 732 00:39:36,760 --> 00:39:39,400 Speaker 1: at the federal and state levels are taking a closer 733 00:39:39,400 --> 00:39:42,319 Speaker 1: look at the Republican. His lies about his past have 734 00:39:42,520 --> 00:39:45,880 Speaker 1: reportedly led to a federal probe into his finances, with 735 00:39:46,000 --> 00:39:49,480 Speaker 1: questions now servicing about seven hundred thousand dollars used to 736 00:39:49,520 --> 00:39:53,160 Speaker 1: fund his campaign. The prosecutor in Nassau County says she 737 00:39:53,400 --> 00:39:58,880 Speaker 1: is looking into numerous fabrications and inconsistencies. Nearly two years 738 00:39:58,920 --> 00:40:02,480 Speaker 1: after New York legal ees recreational marijuana, New York City's 739 00:40:02,560 --> 00:40:06,080 Speaker 1: first dispensary is opening against doors to the public today. 740 00:40:06,440 --> 00:40:09,560 Speaker 1: The Housing Works Cannabis Company in Lower Manhattan is a 741 00:40:09,600 --> 00:40:13,279 Speaker 1: nonprofit that supports the homeless. Attorney Michael Bass says to 742 00:40:13,360 --> 00:40:16,120 Speaker 1: be aware of certain restrictions under the new laws. It's 743 00:40:16,120 --> 00:40:19,680 Speaker 1: gonna be very long lives. And my concern is people 744 00:40:20,440 --> 00:40:23,759 Speaker 1: may lose patients in these lines and just go over 745 00:40:23,800 --> 00:40:27,400 Speaker 1: to New Jersey to buy cannabis products and bring it 746 00:40:27,440 --> 00:40:30,040 Speaker 1: back to New York. Well, if you do that, you've 747 00:40:30,040 --> 00:40:34,239 Speaker 1: committed a federal cry trafficking the cannabis across state lives. 748 00:40:34,280 --> 00:40:38,000 Speaker 1: So I urged folks, please don't do that. Attorney Bass 749 00:40:38,040 --> 00:40:41,279 Speaker 1: also says there are limitations in terms of Grahams Announces 750 00:40:41,320 --> 00:40:44,320 Speaker 1: to what you can purchase in New York. The fallout 751 00:40:44,320 --> 00:40:46,880 Speaker 1: continues over the crisis at the southern border. After the 752 00:40:46,920 --> 00:40:49,879 Speaker 1: Supreme Court led Title forty two stay in place for now. 753 00:40:50,360 --> 00:40:54,120 Speaker 1: People in El Paso, Texas are protesting the extension of 754 00:40:54,160 --> 00:40:57,799 Speaker 1: Title forty two. The Pandemic era policy allows the US 755 00:40:57,840 --> 00:41:01,400 Speaker 1: to expel migrants back across the order without an asylum hearing. 756 00:41:02,080 --> 00:41:05,879 Speaker 1: Bye Bye twenty twenty two. Ahead of the Big Ball 757 00:41:06,000 --> 00:41:09,680 Speaker 1: drop in New Year's Eve, Good Written's Day was held 758 00:41:09,680 --> 00:41:12,800 Speaker 1: in Times Square. Visitors could write down what they want 759 00:41:12,880 --> 00:41:15,560 Speaker 1: to leave in the past. This man is a cancer 760 00:41:15,560 --> 00:41:20,560 Speaker 1: survivor five nosed in January this year and went through 761 00:41:20,640 --> 00:41:25,840 Speaker 1: chemo radiation surgery, and many others retired of COVID Global 762 00:41:25,880 --> 00:41:27,800 Speaker 1: News twenty four hours a day on air end on 763 00:41:27,920 --> 00:41:30,600 Speaker 1: Bloomberg Quick Take power by more than twenty seven under 764 00:41:30,680 --> 00:41:33,759 Speaker 1: journalist and analyists more than a hundred twenty countries. Michael Barr, 765 00:41:33,800 --> 00:41:36,399 Speaker 1: this is Bloomberg, John, Michael, thank you. It is now 766 00:41:36,600 --> 00:41:39,960 Speaker 1: six ten uh Wolves free. Yeah. I signed out for 767 00:41:39,960 --> 00:41:42,439 Speaker 1: the Bloomberg Sports Report being brought you by your Try 768 00:41:42,520 --> 00:41:45,200 Speaker 1: State autie dealers. Let's get the ump date from John 769 00:41:45,200 --> 00:41:47,840 Speaker 1: Stashire Morning John, Good morning John, and Nets and Hawks. 770 00:41:47,880 --> 00:41:50,800 Speaker 1: We're in Atlanta Hops with without three injured starters, Nets 771 00:41:50,920 --> 00:41:53,439 Speaker 1: riding along wind streak. They had a double digit lead, 772 00:41:53,520 --> 00:41:58,760 Speaker 1: but then the Hopps rallied five the gate one four 773 00:42:00,760 --> 00:42:04,439 Speaker 1: the rand uptime moving left stop for the time head 774 00:42:04,480 --> 00:42:09,520 Speaker 1: away called for th D one O six four w 775 00:42:09,760 --> 00:42:12,160 Speaker 1: f a n Atlanta Mr shot to win it at 776 00:42:12,200 --> 00:42:14,400 Speaker 1: the buzzer and the Nets made it ten wins in 777 00:42:14,400 --> 00:42:17,120 Speaker 1: a row. It's their longest win streak in sixteen years. 778 00:42:17,640 --> 00:42:20,760 Speaker 1: One oh eight one oh seven Kyrie every twenty eight points. 779 00:42:20,800 --> 00:42:22,680 Speaker 1: Fifteen of those came in the fourth quarter for Kevin 780 00:42:22,719 --> 00:42:27,239 Speaker 1: Duran twenty six point sixteen rebounds, eight assists, Nets look 781 00:42:27,280 --> 00:42:30,080 Speaker 1: to keep the street going. Saturday at Charlotte. Knicks, coming 782 00:42:30,120 --> 00:42:33,799 Speaker 1: off that overtime lost in Dallas, played tonight in San Antonio, 783 00:42:33,880 --> 00:42:36,440 Speaker 1: and since winning seven row, the Knicks have lost their 784 00:42:36,520 --> 00:42:38,800 Speaker 1: last four. Devils beating the New Work by the NHL 785 00:42:38,920 --> 00:42:42,080 Speaker 1: leading Bruins three to one. Rangers visit Tampa Bay tonight. 786 00:42:42,120 --> 00:42:44,560 Speaker 1: The Islanders are home for Columbus St. John's hostin Xavier. 787 00:42:44,640 --> 00:42:47,319 Speaker 1: Trailed by eleventh a half, the Red Storm lost eighty 788 00:42:47,400 --> 00:42:49,839 Speaker 1: four to seventy nine and now eleven and three, one 789 00:42:49,880 --> 00:42:53,080 Speaker 1: and two in the Big East. Fordham was twelve and one, 790 00:42:53,160 --> 00:42:55,279 Speaker 1: but the Rams lost their Atlantic Tin opener at Rose 791 00:42:55,360 --> 00:42:59,160 Speaker 1: Hilda Davidson fifty seven to forty three, to only fourteen 792 00:42:59,200 --> 00:43:01,440 Speaker 1: points in the first half. There's college football in New 793 00:43:01,520 --> 00:43:05,160 Speaker 1: York this afternoon. Syracuse and Minnesota. The pin Strike Ball 794 00:43:05,160 --> 00:43:07,799 Speaker 1: at Yankee Stadium. Last night's Liberty Bowl in Memphis went 795 00:43:07,880 --> 00:43:13,080 Speaker 1: triple overtime. Kansas rally from down, but Arkansas one fifty 796 00:43:13,160 --> 00:43:17,600 Speaker 1: three National Semifinals. Saturday, Michigan TCU and Phoenix, Georgia takes 797 00:43:17,640 --> 00:43:20,600 Speaker 1: on Ohio State in Atlanta. Winners played January nine and 798 00:43:20,760 --> 00:43:23,480 Speaker 1: l A John Statar Bloomberg Sports. John all right, John, 799 00:43:23,560 --> 00:43:26,520 Speaker 1: thanks very much. The Bloomberg Sports Report brought to you 800 00:43:26,560 --> 00:43:28,880 Speaker 1: by Audie. Don't let somebody else drive off on the 801 00:43:28,920 --> 00:43:31,520 Speaker 1: Audi model that you've always wanted. Visit your local Tri 802 00:43:31,640 --> 00:43:35,040 Speaker 1: state Audie dealer, or get behind the wheel of yours today, 803 00:43:35,120 --> 00:43:39,440 Speaker 1: or visit Audi Offers dot com for more information. Head 804 00:43:39,480 --> 00:43:41,799 Speaker 1: of the cash open on Wall Street futures right now, 805 00:43:42,120 --> 00:43:45,080 Speaker 1: point to uh A higher open, Dow futures up eight, 806 00:43:46,040 --> 00:43:49,520 Speaker 1: SMP Evenate futures up twenty. This is Bloomberg Dame Break 807 00:43:52,920 --> 00:43:56,319 Speaker 1: live from coast to coast, from New York to San Francisco, 808 00:43:56,520 --> 00:44:00,200 Speaker 1: Boston to Washington, d C. Nationwide on Sirius X, then 809 00:44:00,320 --> 00:44:03,920 Speaker 1: the Bloomberg Business app and Bloomberg dot Com. This is 810 00:44:04,000 --> 00:44:08,080 Speaker 1: Bloomberg Daybreak and good morning. I'm John Tucker. Well, we 811 00:44:08,120 --> 00:44:11,080 Speaker 1: had concerns about the spread of COVID nineteen from China, 812 00:44:11,280 --> 00:44:13,160 Speaker 1: weakening some of the risk afford site. In one of 813 00:44:13,200 --> 00:44:16,440 Speaker 1: the final trading days of the year, yesterday's session, SMP 814 00:44:16,480 --> 00:44:20,200 Speaker 1: five hundred lost one point two percent. Right now, let's 815 00:44:20,239 --> 00:44:22,560 Speaker 1: get you set up for the trading day Ahead. We 816 00:44:22,600 --> 00:44:27,520 Speaker 1: are joined by uh mak wod New Ronnie, the CEO 817 00:44:27,680 --> 00:44:32,000 Speaker 1: and co founder at quant Insight. UM. With the COVID 818 00:44:32,080 --> 00:44:34,359 Speaker 1: risk in the markets, you have a sense of well, 819 00:44:34,520 --> 00:44:39,160 Speaker 1: here we go again with with COVID HI. Good morning 820 00:44:39,200 --> 00:44:42,680 Speaker 1: from London, John. As far as COVID in in China 821 00:44:42,760 --> 00:44:45,520 Speaker 1: is concerned, all eyes are on that. But it is 822 00:44:45,640 --> 00:44:48,160 Speaker 1: really a bit of a wild card um. You know, 823 00:44:48,280 --> 00:44:51,759 Speaker 1: on the one hand you have opening up and some 824 00:44:51,880 --> 00:44:55,279 Speaker 1: sort of resumption of economic activity. On the other hand, 825 00:44:55,320 --> 00:44:59,279 Speaker 1: it's really hard to get a handle on UM you know, 826 00:44:59,360 --> 00:45:02,480 Speaker 1: the impact that it's going to have on on economic activity. 827 00:45:02,920 --> 00:45:05,480 Speaker 1: So a real wild card and that really adds to 828 00:45:05,520 --> 00:45:09,000 Speaker 1: the uncertainty going into two thousand and twenty three, and 829 00:45:09,000 --> 00:45:12,160 Speaker 1: there's a lot of it. What can you pick up 830 00:45:12,160 --> 00:45:17,440 Speaker 1: for the ashes of if anything, with the risk assets 831 00:45:17,440 --> 00:45:20,520 Speaker 1: and beyond Yeah, absolutely. I mean what we do at 832 00:45:20,560 --> 00:45:23,160 Speaker 1: quantu inside is we like looking at the data, and 833 00:45:23,239 --> 00:45:26,279 Speaker 1: we gather millions of data points today and have this 834 00:45:26,360 --> 00:45:30,319 Speaker 1: big machine that basically processes it all. Looks at all 835 00:45:30,360 --> 00:45:34,960 Speaker 1: the daily little variations we see in information on GDP 836 00:45:35,120 --> 00:45:38,520 Speaker 1: and inflation and what the Fed's expected to do and 837 00:45:38,520 --> 00:45:41,600 Speaker 1: and sort of relate that asset prices to help us 838 00:45:41,680 --> 00:45:45,160 Speaker 1: understand what's really going on. And the two thousand two 839 00:45:45,200 --> 00:45:48,200 Speaker 1: story was very clear, and that was really that the 840 00:45:48,239 --> 00:45:51,040 Speaker 1: only game in town was the FED and where they 841 00:45:51,040 --> 00:45:53,839 Speaker 1: were going to stop. But what we started to see 842 00:45:53,840 --> 00:45:57,520 Speaker 1: in the last few weeks is that all the indicators 843 00:45:57,600 --> 00:46:01,839 Speaker 1: are showing that the importance of the FED is diminishing 844 00:46:02,520 --> 00:46:05,360 Speaker 1: and the importance of the real economy and the credit 845 00:46:05,440 --> 00:46:09,240 Speaker 1: cycle is increasing. Now we sort of have this weird 846 00:46:09,880 --> 00:46:13,760 Speaker 1: six month period where although the FED has been tightening 847 00:46:13,840 --> 00:46:17,600 Speaker 1: a lot and very quickly, US real GDP growth has 848 00:46:17,640 --> 00:46:21,960 Speaker 1: actually been positive. So we've we've got positive GDP growth 849 00:46:22,040 --> 00:46:25,680 Speaker 1: into three, and it looks like Q four will be positive. Uh. 850 00:46:25,680 --> 00:46:29,800 Speaker 1: And I noted with interest that Goldman's chief economists yesterday 851 00:46:29,880 --> 00:46:34,160 Speaker 1: was on LinkedIn talking about their forecast for three for 852 00:46:34,360 --> 00:46:37,320 Speaker 1: US real GDP growth and he had that as positive 853 00:46:37,400 --> 00:46:41,759 Speaker 1: one percent. In the other corner, you have, of course, 854 00:46:41,800 --> 00:46:44,960 Speaker 1: everyone talking about the inverted yield curve and how that's 855 00:46:44,960 --> 00:46:49,239 Speaker 1: a very reliable predictor of recession. Uh. And so what 856 00:46:49,360 --> 00:46:52,880 Speaker 1: it boils down to three is how's the real economy 857 00:46:52,920 --> 00:46:55,839 Speaker 1: going to do? And how is the credit cycle going 858 00:46:55,880 --> 00:46:59,200 Speaker 1: to do? And is all this tightening we've seen from 859 00:46:59,200 --> 00:47:02,960 Speaker 1: the Fed fine lead going to bite when it comes 860 00:47:03,000 --> 00:47:07,080 Speaker 1: to real GDP growth. Are we going to see unemployment rise? 861 00:47:07,640 --> 00:47:10,080 Speaker 1: That's the big question, and where we are right now 862 00:47:10,920 --> 00:47:12,879 Speaker 1: is very unclear. I mean, if you look at US 863 00:47:12,960 --> 00:47:17,040 Speaker 1: corporate bankruptcies in two thousand and twenty two, they are 864 00:47:17,080 --> 00:47:20,480 Speaker 1: at a ten year low. Um, you know, the consumer 865 00:47:20,760 --> 00:47:24,160 Speaker 1: has done way better than expected. Whether that's because they've 866 00:47:24,160 --> 00:47:28,480 Speaker 1: been spending on credit cards is an open question. Corporate 867 00:47:28,480 --> 00:47:30,880 Speaker 1: credit spreads, which give you an idea of sort of 868 00:47:30,960 --> 00:47:34,960 Speaker 1: the market expected default rate for corporate and how much 869 00:47:35,000 --> 00:47:39,320 Speaker 1: pain they see next year, is not really flashing any 870 00:47:39,480 --> 00:47:42,839 Speaker 1: red signs as yet. And so the net result is 871 00:47:42,880 --> 00:47:45,920 Speaker 1: you've got the equity market stuff between this sort of 872 00:47:46,000 --> 00:47:49,800 Speaker 1: thirty six hundred and four thousand, four thousand, one hundred 873 00:47:49,880 --> 00:47:53,799 Speaker 1: sort of zone while we see what the economy does. 874 00:47:54,040 --> 00:47:57,160 Speaker 1: And so what we're doing at QI is watching the 875 00:47:57,200 --> 00:48:02,279 Speaker 1: real economy data very very closely as enter where did 876 00:48:02,280 --> 00:48:07,560 Speaker 1: the earnings expectations fit into all of this? Well, you know, 877 00:48:07,719 --> 00:48:13,719 Speaker 1: the current earnings expectations are moderates, kind of small positive 878 00:48:14,080 --> 00:48:16,520 Speaker 1: and you have a bit of a disagreement out there 879 00:48:16,640 --> 00:48:20,480 Speaker 1: because a lot of the equity market bears are expecting 880 00:48:20,520 --> 00:48:25,439 Speaker 1: an earnings recession in three but that is based on 881 00:48:25,840 --> 00:48:29,040 Speaker 1: the view that the US economy is going to go 882 00:48:29,200 --> 00:48:35,080 Speaker 1: into recession. So again, you know, if we do get 883 00:48:35,080 --> 00:48:38,640 Speaker 1: this soft landing, and some of the pundits are right 884 00:48:39,600 --> 00:48:42,880 Speaker 1: that you get one percent positive real GDP growth in 885 00:48:44,320 --> 00:48:48,359 Speaker 1: the Fed engineers this kind of amazing soft landing where 886 00:48:48,360 --> 00:48:51,640 Speaker 1: they've managed to slow the economy down and inflation comes 887 00:48:51,680 --> 00:48:56,600 Speaker 1: down and you're still growing it around one percent. Again, 888 00:48:56,680 --> 00:48:59,840 Speaker 1: that speaks to more of a sideways type of equity 889 00:49:00,000 --> 00:49:03,120 Speaker 1: pocket and no sort of huge type of back market 890 00:49:03,200 --> 00:49:06,719 Speaker 1: that we saw this year. All right, we'll leave it there. 891 00:49:06,880 --> 00:49:11,120 Speaker 1: Mamo the Nearani, the CEO and co founder of Quanda Insight, 892 00:49:11,239 --> 00:49:14,720 Speaker 1: joining us from London this morning, appreciate your time. Ahead 893 00:49:14,719 --> 00:49:16,640 Speaker 1: of the cash open on Wall Street this morning. We 894 00:49:16,719 --> 00:49:19,680 Speaker 1: have futures for now in the green, the down futures 895 00:49:19,920 --> 00:49:22,279 Speaker 1: there's seventy points higher, that's a rise of about two 896 00:49:22,280 --> 00:49:24,840 Speaker 1: tenths of a percent. S and P evening futures of 897 00:49:24,920 --> 00:49:27,279 Speaker 1: seventeen that's up four tenths of a percent right now, 898 00:49:27,600 --> 00:49:31,160 Speaker 1: and Tech Cavy NAZAC futures seventy nine points higher. That 899 00:49:31,480 --> 00:49:35,760 Speaker 1: is a three quarters of eight percent. And look at 900 00:49:35,840 --> 00:49:38,759 Speaker 1: Nimex crewed right now. This is West Texas Intermediate, down 901 00:49:38,920 --> 00:49:41,960 Speaker 1: one and a half percent off the session laws right now, 902 00:49:42,160 --> 00:49:46,239 Speaker 1: down a dollar three a barrel at seventy seven seventy eight. 903 00:49:46,480 --> 00:49:48,400 Speaker 1: You're listening to Bloomberg Daybreak