WEBVTT - Bloomberg Daybreak: December 29, 2022 - Hour 2 (Radio) 0:00:01.680 --> 0:00:05.040 Markets, headlines and breaking news twenty four hours a day 0:00:05.160 --> 0:00:08.720 at Bloomberg dot com, the Bloomberg Business Outland at Bloomberg 0:00:08.800 --> 0:00:18.960 Quick Tape, She's a Bloomberg business flash and I'm Karen Moscow. 0:00:19.040 --> 0:00:22.000 And futures are higher led by technology shares. We checked 0:00:22.040 --> 0:00:24.760 the markets all day long year on Bloomberg SMP futures 0:00:24.800 --> 0:00:27.760 up half percent of seventeen points down, features up two 0:00:27.800 --> 0:00:30.320 tens of a percent or seventy four points, and nosday 0:00:30.360 --> 0:00:33.600 futures up seven tenths of a percent or seventy five points. 0:00:33.600 --> 0:00:36.159 The decks in Germany's up about two tenths of a percent. 0:00:36.479 --> 0:00:38.800 Ten year treasury up one thirty second deal three point 0:00:38.800 --> 0:00:40.919 eight seven percent. That yield on the two year four 0:00:40.960 --> 0:00:44.040 point three six percent. NIMEX screwed oil is down one 0:00:44.080 --> 0:00:46.840 percent on ninety four cents at seventy eight dollars two 0:00:46.840 --> 0:00:48.960 cents of Barrel Comic School down a tenth of a 0:00:49.040 --> 0:00:52.680 percent or two dollars fifty cents at eighteen thirteen thirty announced. 0:00:53.040 --> 0:00:55.520 The euro one point oh six three nine against the dollar, 0:00:55.560 --> 0:00:58.120 British pound one point two zero two six, the yen 0:00:58.200 --> 0:01:00.800 one thirty three point seven three and bit growing up 0:01:00.840 --> 0:01:04.160 about half percent and about sixteen thousand, six hundred dollars. 0:01:04.560 --> 0:01:07.480 And as a Bloomberg Business flash, John all right, Karen, 0:01:07.520 --> 0:01:09.720 thanks very much. Is now all six fifty six on 0:01:09.880 --> 0:01:11.880 Wall Street. Time to take a look at stocks, some 0:01:11.959 --> 0:01:13.520 of the names that are moving in the pre market. 0:01:13.640 --> 0:01:15.560 And for that we're joined by Bloomberg Radio and TV 0:01:15.680 --> 0:01:20.800 Markets correspondent Kritty Gupta. Here's a quiz. What stock brought 0:01:20.840 --> 0:01:25.560 a windfall of seventeen billion dollars for shorts last year 0:01:25.720 --> 0:01:30.039 or this year? You know it's your first stock, it 0:01:30.120 --> 0:01:31.720 is my first stock. I just wanted to make sure 0:01:31.880 --> 0:01:38.360 that I was right. I'm just I'm just staring at stump. 0:01:38.440 --> 0:01:42.560 The reporter Tesla is the first doc C s L 0:01:42.640 --> 0:01:45.479 a day win the pop quiz series about four point 0:01:45.480 --> 0:01:47.560 four percent this morning. Let's come back to you after 0:01:47.560 --> 0:01:52.200 an analyst kind of I will say standpard approval reconfirmation. 0:01:52.240 --> 0:01:55.360 I would say Morgan Stanley of Adam Jonas over there, 0:01:55.360 --> 0:01:58.320 the analyst saying that he d rating in the ev 0:01:58.480 --> 0:02:01.840 company stock has created did an opportunity. He did lower 0:02:01.880 --> 0:02:05.120 his private price target to two fifty dollars from three 0:02:05.200 --> 0:02:07.920 hundred and thirty, but he is sticking to his overweight rating. 0:02:07.960 --> 0:02:10.760 Tesla shares now training about a hundred and seventeen dollars. 0:02:10.919 --> 0:02:13.600 So basically, he's saying that those wave of analysts downgrades 0:02:13.600 --> 0:02:15.280 that I had pressured the stock in the last couple 0:02:15.280 --> 0:02:18.320 of days and arguably weeks, He's sticking to his guns 0:02:18.360 --> 0:02:20.680 here and saying, well, look that is actually making it 0:02:21.040 --> 0:02:24.000 a little bit cheaper to hop into. So nevertheless, Tesla 0:02:24.080 --> 0:02:26.360 shares t s l A up four point four percent, 0:02:26.639 --> 0:02:29.880 down a hundred and seventeen or excuse me, um training 0:02:29.919 --> 0:02:31.639 around a hundred and seventeen a share. And this is 0:02:31.680 --> 0:02:36.560 also important because it's coming after about seven days of losses. 0:02:36.800 --> 0:02:38.840 Yesterday was its first positive day. Let see if it 0:02:38.919 --> 0:02:41.839 holds into today. Maybe in a Tesla and a peer 0:02:41.960 --> 0:02:45.480 to peer car sharing marketplace. I have a car sharing 0:02:45.720 --> 0:02:49.520 um program at my house with a teenager. It doesn't work. 0:02:50.280 --> 0:02:53.519 What's this next stock? Let's talk about the stock called 0:02:53.600 --> 0:02:56.320 Get Around g E. T R shares are up. While 0:02:56.320 --> 0:02:58.360 they were about three point three percent, they are now 0:02:58.440 --> 0:03:00.240 up about one percent. This is a stock that was 0:03:00.280 --> 0:03:04.080 initiated with an overweight rating and just a one dollar 0:03:04.240 --> 0:03:06.760 fifty cent price target. One of those really tiny stocks 0:03:06.800 --> 0:03:09.800 but worth remembering because it's one of the only movers 0:03:09.800 --> 0:03:12.120 out there this morning over a Piper Sandler, they're saying 0:03:12.200 --> 0:03:14.720 that the platform looks well positioned to provide, to your point, 0:03:14.720 --> 0:03:18.120 pier to pier car sharing marketplace. Um. The other one 0:03:18.120 --> 0:03:20.280 I really want to point out here is the oil story, 0:03:20.320 --> 0:03:22.600 because you are seeing oil come down a little bit 0:03:22.840 --> 0:03:24.920 uh this morning, and that is having a ripple effect 0:03:24.960 --> 0:03:27.600 into Exxon and Chevron as well. X O M is 0:03:27.639 --> 0:03:30.320 your taker DWN about seven tenths of one percent and 0:03:30.440 --> 0:03:33.080 Chevron not far behind a cv X down eight tenths 0:03:33.080 --> 0:03:34.600 of one percent. A lot of this has to do 0:03:34.960 --> 0:03:39.880 with this idea of is a Chinese reopening inflationary or disinflationary? Yeah, 0:03:39.920 --> 0:03:42.080 I mean it's interestion. We were talking about that today 0:03:42.120 --> 0:03:44.960 because it's like, I'm kind of kind of confused. Second 0:03:45.000 --> 0:03:49.360 largest economy reopens, good, right, you know, oil run, But 0:03:49.440 --> 0:03:52.880 then you have the well we hadn't COVID spread possibly 0:03:53.040 --> 0:03:55.280 we had an oil analyst on early edition this morning 0:03:55.520 --> 0:04:00.000 bloomber Television actually talking about, well, look, China's domestic demand 0:04:00.040 --> 0:04:02.680 and is going in domestic tourism is going to wrap 0:04:02.800 --> 0:04:04.600 up from reopening, which is of course a bullish river. 0:04:04.720 --> 0:04:06.880 But the spread of COVID, to your point, could be 0:04:06.920 --> 0:04:09.560 a bearish one. All right, Bloomberg Radio and TV Markets 0:04:09.600 --> 0:04:12.760 correspondent crittic Group to thank you, appreciated Critty and looking 0:04:12.800 --> 0:04:15.120 at stocks as the whole ahead of the open SMP 0:04:15.320 --> 0:04:18.679 futures of seventeen right now down future is up seventy 0:04:18.720 --> 0:04:21.760 four and the state futures up seventy four. And for 0:04:21.960 --> 0:04:25.520 Karen Moscow, I'm John Tucker. To stay with Just ahead, 0:04:25.600 --> 0:04:32.000 you can hear Bloomberg Surveillance live from the financial capital 0:04:32.000 --> 0:04:35.880 of the world broadcasting across below. This is w VBR 0:04:36.000 --> 0:04:45.440 New York Bloomberg he limon Frio. I don't see any 0:04:45.480 --> 0:04:48.120 reason for the Fed to be moving that two percent target. 0:04:48.279 --> 0:04:53.440 We finally have come to grips with markets, headlines and 0:04:53.520 --> 0:04:56.800 breaking news twenty four hours a day at Bloomberg dot Com, 0:04:56.920 --> 0:05:00.480 the Bloomberg Business at and at Bloomberg Quick Take, She's 0:05:00.480 --> 0:05:09.400 a bloom Burn Business Lash and I'm Karen Monstcaw and 0:05:09.520 --> 0:05:12.880 futures are on the rise. This morning, led by tech Shares, 0:05:12.960 --> 0:05:15.240 we get the first word breaking news dance for today's 0:05:15.279 --> 0:05:20.880 morning call. And here's Tatiana Darry Tatiana, good morning, Good morning, Karen, 0:05:20.960 --> 0:05:24.040 futures are holding around the highs, with the dull contracts 0:05:24.080 --> 0:05:26.400 up sixty two points, S and P s up sixteen 0:05:26.760 --> 0:05:29.640 and nastacap seventy two. The U S tenure yield is 0:05:29.720 --> 0:05:32.360 lower by one basis point to a three spot eight 0:05:32.480 --> 0:05:35.520 seven percent. This morning. Oil is down to and the 0:05:35.600 --> 0:05:38.919 dollar is weak or by about two tenths. Elsewhere. European 0:05:38.960 --> 0:05:42.080 stocks are slightly higher at this hour, while Asian markets 0:05:42.120 --> 0:05:45.280 fell overnight. Back in the US on the economic front, 0:05:45.279 --> 0:05:48.679 today we have jobless claims at eight thirty. In early 0:05:48.760 --> 0:05:51.800 trading this morning, Tesla on the move again, shares up 0:05:51.839 --> 0:05:55.320 five percent after Morgan Stanley said hears are more attractive 0:05:55.440 --> 0:05:58.760 after the recent decline, and Netflix is up one after 0:05:58.800 --> 0:06:02.839 an upgrade at CFR eight. In other news, Get Around 0:06:02.920 --> 0:06:06.160 was initiated with an overweight at Piper Sandler and keep 0:06:06.200 --> 0:06:08.680 an Eye of Sketcher shares after Piper gave it a 0:06:08.720 --> 0:06:12.880 neutral rating, calling its valuation fair. Live from the first 0:06:12.880 --> 0:06:16.760 and breaking news task, I'm Tatiana, Daria Karen very Tatiana, 0:06:16.800 --> 0:06:19.000 thank you and here live breaking news of your Bloomberg 0:06:19.040 --> 0:06:21.920 type squawk on your terminal ascue you a w K 0:06:22.080 --> 0:06:24.440 and as a Bloomberg Business Flash. Now here's Michael Barr 0:06:24.520 --> 0:06:26.760 with more on what's going on around the world. Michael, 0:06:26.839 --> 0:06:29.000 paren thank you very much. More than twenty three hundred 0:06:29.040 --> 0:06:32.480 Southwest flights are already canceled today, marking the fourth strade 0:06:32.520 --> 0:06:35.840 day of the airline has canceled more than fifty percent 0:06:36.120 --> 0:06:39.440 of its scheduled flights, and all more than thirteen thousand 0:06:39.520 --> 0:06:42.599 Southwest flights of the past week been canceled. The U 0:06:42.720 --> 0:06:46.599 S is reinstating mandatory COVID nineteen testing for airline travelers 0:06:46.680 --> 0:06:49.960 arriving from China. The CDC says the new measures follow 0:06:49.960 --> 0:06:53.440 a surgeon infections in China and a lack of transparency 0:06:53.480 --> 0:06:57.520 from Chinese officials. A massive fire at a Cambodian hotel 0:06:57.640 --> 0:07:01.400 casino has killed about a dozen people. In the NBA, 0:07:01.600 --> 0:07:04.640 the Nets won their tenth straight, the Wizards and Warriors one. 0:07:05.000 --> 0:07:08.240 In the NHL, the Bruins Devils three one. Global news 0:07:08.320 --> 0:07:10.800 twenty four hours a day on air and on Bloomberg 0:07:10.840 --> 0:07:14.640 Quick Take, powered by more than journalists analysts in more 0:07:14.680 --> 0:07:17.720 than a d twenty countries. I'm Michael Barr, and this 0:07:18.120 --> 0:07:21.840 is Bloomberg. Karen you. It is six forty two on 0:07:21.880 --> 0:07:24.000 Wall Street, and we turned to news and science and 0:07:24.000 --> 0:07:27.200 technology now at the Bloomberg and j I. T. Stem Report, 0:07:27.320 --> 0:07:30.440 and here's just making news and science, technology, engineering and math. 0:07:30.880 --> 0:07:33.960 South Korea's semiconductor production in November felt by the most 0:07:34.000 --> 0:07:37.080 since the global financial crisis, pointing to a further cooling 0:07:37.080 --> 0:07:40.600 of overseas demand for tech components. Chip production shrank for 0:07:40.640 --> 0:07:43.760 a fourth straight month, following fift from a year earlier, 0:07:44.040 --> 0:07:46.920 for the largest drops ince two thousand nine. According to 0:07:47.000 --> 0:07:50.840 data from the National Statistics Office, Lithium will get less 0:07:50.840 --> 0:07:54.400 expensive in this according to a Chinese supplier or the 0:07:54.400 --> 0:07:58.360 battery metal, potentially offering some relief to electric vehicle makers 0:07:58.360 --> 0:08:02.200 sweezed by soaring costs. More supplies emerged to trim abnormally 0:08:02.280 --> 0:08:05.320 high margins for lithium producers, according to the chairman of 0:08:05.360 --> 0:08:08.480 Sina Mine Resource Group and the value of I P O, 0:08:08.600 --> 0:08:10.840 S C M and as in Israel's tech industry this 0:08:10.920 --> 0:08:15.240 year fell substantially from one levels. Rising interest rates and 0:08:15.320 --> 0:08:18.880 economic uncertainty forced a reckoning. According to our report by 0:08:18.960 --> 0:08:21.880 p w C found they were seventy two deals in 0:08:22.600 --> 0:08:26.160 two down from one the previous year, with most of 0:08:26.240 --> 0:08:29.240 transactions taking place in the first half of the year, 0:08:29.640 --> 0:08:32.480 and as the Bloomberg and J. I. T. Stem Report, John, 0:08:32.520 --> 0:08:34.640 all right, Karen, thanks a lot, appreciated the e is 0:08:34.800 --> 0:08:37.160 sixty four Ound Wall Street. Time to check what's going 0:08:37.200 --> 0:08:39.559 on in d C. Some of the top stories in 0:08:39.640 --> 0:08:44.320 the nation's capital include what political prognosticators are facing A 0:08:44.440 --> 0:08:48.480 mountain of unknowns for the coming year, starting with whether 0:08:48.520 --> 0:08:50.839 President Joe Biden is going to seek a second term? 0:08:51.080 --> 0:08:54.840 A great piece from Bloomberg Opinion. It raises all sorts 0:08:54.960 --> 0:08:58.160 of questions for the new year. And who better to 0:08:58.200 --> 0:09:01.920 explore these questions with this morning? Joining us is Wendy Shiller, 0:09:02.000 --> 0:09:05.959 director of the Center for American Politics and Policy at 0:09:06.000 --> 0:09:09.400 Brown University. Always a pleasure, Professor, Thanks for being with us. 0:09:10.320 --> 0:09:15.479 President Biden, will you seek another term? There are other cliffhangers, 0:09:15.520 --> 0:09:19.800 including whether former President Donald Trump will be indicted, whether 0:09:19.840 --> 0:09:23.800 Kevin McCarthy's going to succeed in getting elected Speaker of 0:09:23.880 --> 0:09:27.400 the House. Let's start with Joe Biden. Um, how do 0:09:27.480 --> 0:09:32.160 we divine what his plans might be? Well, he's I mean, 0:09:32.160 --> 0:09:34.080 he's a leader of the Democratic Party, as a leader 0:09:34.120 --> 0:09:38.240 of quote unquote the free world. Uh, it seems you know, 0:09:38.920 --> 0:09:41.760 very very likely that he will aside to announce that 0:09:41.800 --> 0:09:47.120 he is seeking the presidency again, if only as a placeholder. 0:09:47.120 --> 0:09:49.240 In other words, you know, the Democrats feel like they 0:09:49.240 --> 0:09:51.680 came off a good year productivity and they sort of 0:09:51.800 --> 0:09:55.760 narrowly escaped somewhat of a glooming disaster in the mid terms. 0:09:55.800 --> 0:09:58.559 They did much better than people think. Uh, and things 0:09:58.559 --> 0:10:02.280 in the economy seem to be dire going to three 0:10:02.360 --> 0:10:04.360 then people saw a couple of months ago. So it 0:10:04.400 --> 0:10:07.120 doesn't make any sense not to run. Uh, you know, 0:10:07.400 --> 0:10:10.280 you have a whole technically a whole year file, but obviously, 0:10:10.559 --> 0:10:12.440 you know, you want people to believe that you're still 0:10:12.480 --> 0:10:16.319 going to be there after for anything that you want 0:10:16.360 --> 0:10:18.280 to get done in the next two years, So it 0:10:18.320 --> 0:10:20.600 makes sense to announce. I mean, you can always change 0:10:20.600 --> 0:10:22.360 your mind, you can always drop out, you can always 0:10:22.280 --> 0:10:25.000 with draw. There doesn't seem to be a very solid 0:10:25.120 --> 0:10:29.600 Democratic backbencher that could take his place easily to lead 0:10:29.640 --> 0:10:31.640 the party in twenty four so it makes no sense 0:10:31.679 --> 0:10:35.560 not to run. We know he's running for president Donald Trump. 0:10:36.000 --> 0:10:39.679 Is it going to be indicted anytime soon? You know, 0:10:39.720 --> 0:10:43.720 I think there are two very strong looming issues for 0:10:43.800 --> 0:10:48.040 the country in terms of literally stability in the system. Uh. 0:10:48.160 --> 0:10:49.880 You know, we've kind of gone through the elections. We 0:10:49.960 --> 0:10:52.240 made it through the elections, and elections seem to work 0:10:52.280 --> 0:10:54.920 for the most part, so that element of our democracy 0:10:54.960 --> 0:10:57.080 seems to be stable. But if you do not have 0:10:57.080 --> 0:10:59.280 a stable speaker at the House, you can't run the 0:10:59.320 --> 0:11:01.360 set whole coming it. If you don't have a stable 0:11:01.400 --> 0:11:04.560 majority party, you can't run the federal government. So this 0:11:04.640 --> 0:11:07.280 is really really important that Kevin McCarthy, if he's going 0:11:07.320 --> 0:11:10.120 to be speaker, gets elected smoothly and that he can 0:11:10.200 --> 0:11:13.360 can control his party. Not to mention the debt ceiling 0:11:13.400 --> 0:11:16.640 coming up, but just for functionality, you need a functional 0:11:16.679 --> 0:11:19.559 majority party in the House. Uh. And if you indict 0:11:19.640 --> 0:11:22.920 Donald Trump, um, that may actually push the party to 0:11:23.000 --> 0:11:27.440 more unity. Republican Party against that effort. So it's sort 0:11:27.480 --> 0:11:30.120 of ironic that the thing that might destabilize one part 0:11:30.160 --> 0:11:33.800 of the sector of the country Trump supporters might actually 0:11:33.880 --> 0:11:37.360 stabilize the leadership and the Republican Party in the House. Well, 0:11:37.600 --> 0:11:39.240 these are the two things that I'm looking at most 0:11:39.240 --> 0:11:41.520 of all. Uh. You also alluded to at the federal 0:11:41.520 --> 0:11:45.439 government set to hit the borrowing limits sometime next year, 0:11:46.040 --> 0:11:50.080 with Republicans taking control of the House. Uh, will we 0:11:50.280 --> 0:11:54.640 default on our debt? Well, that is just an extraordinarily 0:11:54.679 --> 0:11:58.240 important concern. Uh. You know, if McCarthy can bring which 0:11:58.280 --> 0:12:00.720 the Speaker can do if he points to write people 0:12:00.720 --> 0:12:03.120 to the quote unquote Rules Committee, that's the committee that 0:12:03.120 --> 0:12:05.800 determines typically which bills can get to the House floor. 0:12:05.840 --> 0:12:07.840 If you can get the debt ceiling to the House floor, 0:12:08.120 --> 0:12:11.000 it'll pass because some Democrats will vote for it. They'll 0:12:11.000 --> 0:12:12.760 have to vote for it because they don't want Biden 0:12:12.760 --> 0:12:15.400 administration to have to deal with the default. So the 0:12:15.400 --> 0:12:18.240 Republicans know that McCarthy knows that he can lose a 0:12:18.280 --> 0:12:20.760 good portion of his caucus if he can get the 0:12:20.800 --> 0:12:23.040 bill and the rule approved to get get the debt 0:12:23.080 --> 0:12:24.640 seiling to the floor of the House, he can have 0:12:24.720 --> 0:12:26.960 most of his party vote against it, where the Democrats 0:12:26.960 --> 0:12:29.160 are gonna face enormous pressure to vote order it just 0:12:29.280 --> 0:12:32.680 because they want to support the Biden administration economically. And 0:12:33.440 --> 0:12:36.560 the next question that's that's raised with the Republican House 0:12:36.679 --> 0:12:41.360 impeached Joe Biden. See to me, I think that's an overreach. 0:12:41.480 --> 0:12:43.319 And I think if you've if you've been watching politics 0:12:43.360 --> 0:12:45.840 long enough, you know that new Gingridge. Eventually when he 0:12:45.920 --> 0:12:48.800 ran the House, he overreached and it costs the Republicans 0:12:48.840 --> 0:12:51.040 called him in particular, but it cost the Republicans. And 0:12:51.120 --> 0:12:54.120 I think, um, I think this is something that McCarthy 0:12:54.120 --> 0:12:56.760 has to think about. You know, will the House Republicans 0:12:56.840 --> 0:12:59.440 care about the twenty four presidential race or they just 0:12:59.600 --> 0:13:01.120 decide thing that they you know, they want to be 0:13:01.120 --> 0:13:02.760 in the majority and want to stay in the majority, 0:13:03.040 --> 0:13:06.520 and impeaching will mobilize their local base in the constituencies 0:13:06.559 --> 0:13:08.920 that they won. But think about the conference people from 0:13:09.040 --> 0:13:12.640 New York in particular and California, the new Republicans elected there, 0:13:12.840 --> 0:13:15.600 I'm not sure they are constituencies have the stomach to 0:13:15.640 --> 0:13:17.920 go through an impeachment of Joe Biden. And if those 0:13:17.960 --> 0:13:20.040 are the seats that gave you the majority, then you 0:13:20.040 --> 0:13:22.040 have to wear about holding onto them. And that's going 0:13:22.120 --> 0:13:24.079 to be the calculation Macarti is gonna have to make 0:13:24.800 --> 0:13:27.840 odd number years when you are when the bulk of 0:13:27.920 --> 0:13:32.880 candidate recruitment happens for a Senate and gubernatorial candidates. So 0:13:32.920 --> 0:13:35.640 the question arises in the next minute that we have 0:13:35.720 --> 0:13:39.360 will Republican recruitment for these races go better than they 0:13:39.360 --> 0:13:43.760 did this year well in trem And the big, big 0:13:43.760 --> 0:13:45.800 problem in the Senate races, what are the people who 0:13:45.800 --> 0:13:48.440 were endorsed by Trump, who are election deniers, who are 0:13:48.440 --> 0:13:50.640 sort of quote unquote living in the past. There seems 0:13:50.640 --> 0:13:53.200 to be a lot of rhetoric coming out of Republican 0:13:53.240 --> 0:13:55.840 Party people saying we're gonna move forward and move forward, 0:13:55.880 --> 0:13:58.120 looking to the future. This is what positions were onto 0:13:58.160 --> 0:14:01.640 santas governor of governor elect to being reelected in Florida. 0:14:02.080 --> 0:14:04.720 Uh so, well going into the twenty four races, so 0:14:04.800 --> 0:14:07.240 we'll see how that goes. That you've got George Santos 0:14:07.320 --> 0:14:10.200 and New York who lied pretty much about everything it 0:14:10.240 --> 0:14:12.520 seems in his background, and now you've got a real 0:14:12.559 --> 0:14:15.079 problem again, they've got a credibility problem. Is this the 0:14:15.240 --> 0:14:18.640 kind of Republican party that Independence will support in congressional 0:14:18.720 --> 0:14:21.480 races and the presidential race? And so far we saw 0:14:21.480 --> 0:14:24.600 Independence go slightly for the Democrats in two And the 0:14:24.640 --> 0:14:27.080 only way the Republicans hold on the majority is if 0:14:27.120 --> 0:14:31.200 they can moderate some of these uh these rhetorical issues 0:14:31.200 --> 0:14:35.400 and also truthful issues um and hold onto those seats 0:14:35.400 --> 0:14:37.840 they picked up. And that's the big challenge for them 0:14:37.960 --> 0:14:40.800 and right now. You know, we have no idea how 0:14:40.760 --> 0:14:43.200 they gonna to do that. When do you always a pleasure? 0:14:43.200 --> 0:14:45.840 When doy Show a Director's Center for American Politics and 0:14:45.960 --> 0:14:53.240 Policy at Brown University. You're listening to Bloomberg Markets, headlines 0:14:53.280 --> 0:14:56.280 and breaking news twenty four hours a day at Bloomberg 0:14:56.360 --> 0:14:59.640 dot Com, the Bloomberg Business at and at Bloomberg Quicktake, 0:15:00.280 --> 0:15:09.280 He's a Bloomburn business flash and I'm kared Moscow. You 0:15:09.320 --> 0:15:11.800 guys knock into X futures on their rise this morning, 0:15:11.840 --> 0:15:14.440 led by technology shares, and we check the markets all 0:15:14.520 --> 0:15:17.040 day long here on Bloomberg s and P futures up 0:15:17.360 --> 0:15:19.760 four tens of up percent of seventeen points and down 0:15:19.760 --> 0:15:22.360 futures of two tens of upper cent or sixty eight points. 0:15:22.680 --> 0:15:25.160 NASAIC future is up seven tenths of a percent, or 0:15:25.200 --> 0:15:28.200 seventy eight points. The decks in Germany's of a tenth 0:15:28.240 --> 0:15:30.760 of upper cent and your treasury up three thirty seconds. 0:15:30.760 --> 0:15:32.800 You have three point eight seven percent They yield on 0:15:32.880 --> 0:15:35.960 the two year four point three five percent. Nine excret 0:15:36.000 --> 0:15:38.280 oil is down one point four percent out of dollar 0:15:38.320 --> 0:15:40.760 ten at seventy seven dollars eighty five cents of barrel 0:15:41.040 --> 0:15:43.560 comex school down two tenths percent or three dollars ten 0:15:43.600 --> 0:15:46.840 cents at eighteen twelve seventy announced the euro one point 0:15:46.840 --> 0:15:49.320 oh six three three against the dollar, British found one 0:15:49.320 --> 0:15:51.960 point two zero to eight, then one thirty three point 0:15:52.040 --> 0:15:55.080 seven five and Bitcoin this morning up half percent at 0:15:55.120 --> 0:15:58.800 about sixteen thousand, five hundred ninety dollars. And that's a 0:15:58.840 --> 0:16:01.760 Bloomberg business flag show. Here's Michael Barr with more. I'm 0:16:01.800 --> 0:16:04.120 what's going on around the world, Michael Karen, thank you 0:16:04.200 --> 0:16:06.440 very much. Southwest is trying to recover from one of 0:16:06.480 --> 0:16:10.400 the worst airline meltdowns in US history. Passengers are still 0:16:10.440 --> 0:16:14.160 stranded all over the country. Another twenty three hundred Southwest 0:16:14.160 --> 0:16:17.600 flights have been canceled for today. The US and Italy 0:16:17.720 --> 0:16:21.360 joined an increasing number of nations requiring COVID tests for 0:16:21.480 --> 0:16:24.840 travelers from China. Concerns are mounting over the risk of 0:16:24.880 --> 0:16:28.320 any new variants emerging from the surgeon infections in the country. 0:16:28.800 --> 0:16:31.560 In the NBA, the Nets one their tenth straight, the 0:16:31.640 --> 0:16:34.920 Wizards and Warriors one. In the NHL, the Bruins beat 0:16:34.960 --> 0:16:37.720 the Devil's three one. Global news twenty four hours a 0:16:37.800 --> 0:16:40.440 day on here and on Bloomberg Quick Take powered by 0:16:40.440 --> 0:16:44.040 more than twenty seven under journalist and analyists more than 0:16:44.440 --> 0:16:47.760 twenty countries. I'm Michael bar This is Bloomberg. Michael, thank you, 0:16:47.880 --> 0:16:50.320 six twenty three on Wall Street. I'm John Tucker. You're 0:16:50.360 --> 0:16:53.720 listening to Bloomberg day Break. Overnight, Russia ramped up attacks 0:16:53.720 --> 0:16:56.640 on major cities in Ukraine. It comes as the Russian 0:16:56.720 --> 0:16:59.840 Foreign Minister Sergei Lavrov ruled out peace talks to in 0:17:00.000 --> 0:17:02.960 the war, that's in spite of major losses and sent 0:17:03.040 --> 0:17:06.399 backs on the battlefield for Russia. The former US Defense 0:17:06.440 --> 0:17:09.440 Secretary Market Aspert, weighing in on the conflict, he sent 0:17:09.520 --> 0:17:13.520 down to discuss the war with Bloomberg's David Weston. Let's 0:17:13.560 --> 0:17:15.640 turn to Ukraine, which we've talked about in the past. 0:17:15.680 --> 0:17:18.359 As you say, there was that dramatic speech from President 0:17:18.400 --> 0:17:22.399 Zelinsky before the Joint Meeting of Congress UH and I 0:17:22.440 --> 0:17:24.639 wonder what you took away from that and whether, in 0:17:24.720 --> 0:17:28.439 fact the United States should be perhaps changing its attitude 0:17:28.560 --> 0:17:31.480 toward Ukraine, because certainly President Lensky was not shy but 0:17:31.640 --> 0:17:34.000 saying he really appreciates what he's gotten, but he needed 0:17:34.080 --> 0:17:36.760 leads an a lot more things like fixed wing aircraft, 0:17:36.920 --> 0:17:40.360 things like longer range missiles. His visit was very important, 0:17:40.400 --> 0:17:43.359 His speech was very impressive. It sent a message to 0:17:43.440 --> 0:17:46.040 the Russians, of course, that the United States was standing 0:17:46.320 --> 0:17:48.480 behind them, particularly as we head into the winter months 0:17:48.600 --> 0:17:51.000 right now. And it was a chance for Biden President 0:17:51.000 --> 0:17:53.040 buying a message the American people and for us to 0:17:53.040 --> 0:17:55.639 message the allies. And look, I think we've done a 0:17:55.680 --> 0:17:57.440 good job, but we could be doing so much more. 0:17:57.800 --> 0:18:01.160 They do need fixed wing aircraft, they do need tanks. Uh, 0:18:01.200 --> 0:18:03.760 they do need the means to conduct an offensive campaign, 0:18:03.840 --> 0:18:06.760 to do a counter offensive. That's how you break a 0:18:06.800 --> 0:18:09.359 trench warfare type stalemate that we're kind of seeing now. 0:18:10.080 --> 0:18:13.280 That's at the operational level. At the strategic level, they 0:18:13.320 --> 0:18:16.320 need far more and greater air defenses. And look, the 0:18:16.400 --> 0:18:18.199 United States has done a lot, but we need our 0:18:18.240 --> 0:18:20.520 allies to do a whole lot more. Most of our 0:18:20.560 --> 0:18:23.240 allies have contributed less than six hundred million dollars or 0:18:23.280 --> 0:18:26.240 so in military aid. The United States tens of billions 0:18:26.240 --> 0:18:28.919 of dollars. So if we can get more of our 0:18:28.960 --> 0:18:31.360 allies to do more of that, to provide those critical 0:18:31.680 --> 0:18:33.879 arms and pieces of equipment that I just mentioned, we 0:18:33.880 --> 0:18:35.840 can allow the Ukrainians to get on the offensive, to 0:18:35.840 --> 0:18:38.119 push the Russians out and bring this war to a 0:18:38.200 --> 0:18:40.639 quicker conclusion than than the path that looks to be 0:18:40.680 --> 0:18:42.240 on right now. Well, that's just what I want to 0:18:42.240 --> 0:18:44.440 ask about going on the offensive, as you just said, 0:18:44.560 --> 0:18:46.760 because I think in some quarters that might be thought, well, 0:18:46.800 --> 0:18:48.760 this is turning sort of into a stalemate and this 0:18:48.800 --> 0:18:50.840 will go on for a long time, become chronic. It 0:18:50.880 --> 0:18:53.040 looks like perhaps that's what letter of Putin wants. If 0:18:53.080 --> 0:18:55.439 the Ukrainies are not winning this war, are they losing 0:18:55.440 --> 0:19:00.840 it ultimately? Now not necessarily, but again the country would 0:19:00.880 --> 0:19:03.119 remain occupied. And what we don't want is another frozen 0:19:03.160 --> 0:19:06.720 conflict like we have in Georgia or Moldova. So the 0:19:06.800 --> 0:19:08.919 Ukrainians have the momentum right now. We need to supply them. 0:19:08.960 --> 0:19:11.240 And you're right, put And strategy is to weait us out. 0:19:11.280 --> 0:19:14.800 I mean, that's why he is. He is hammering uh 0:19:15.280 --> 0:19:20.280 Ukrainian cities, infrastructure, energy resources with ballistic missiles and drones. 0:19:20.320 --> 0:19:22.600 He wants to break the back, break the will of 0:19:22.680 --> 0:19:25.399 the Ukrainian people. We now see he's putting in barbo 0:19:25.480 --> 0:19:27.480 if you will, on countries that put a price cap 0:19:27.520 --> 0:19:29.919 on oil. He wants to freeze them out, frees us 0:19:29.920 --> 0:19:32.359 out a little bit. Also, he is playing for time, 0:19:32.400 --> 0:19:34.720 thinking that we will we will wobble, we will weaken, 0:19:35.000 --> 0:19:36.560 and look, there's some truth to that in the past, 0:19:36.680 --> 0:19:38.840 we've seen that. So it's important that we hold on. 0:19:38.920 --> 0:19:41.520 But at the same time give Ukraine what they need 0:19:41.560 --> 0:19:43.320 to win. They have the will, they have, the courage, 0:19:43.359 --> 0:19:46.000 they had the resolve. They've been showing a great deal 0:19:46.040 --> 0:19:48.000 of grit and success on the battle field. We need 0:19:48.040 --> 0:19:50.520 to help enable that. How important our drones in this 0:19:50.600 --> 0:19:53.320 ca battle on both sides, the drone technology and of 0:19:53.359 --> 0:19:56.080 course counter drone technology as well, critically important. But you 0:19:56.119 --> 0:19:58.440 see the Ukrainians not using them to conduct long range 0:19:58.480 --> 0:20:02.159 strikes hundreds of miles in the Russian territory to attack 0:20:02.240 --> 0:20:05.960 air fields from which Russians are launching bombers, so they're 0:20:06.040 --> 0:20:08.239 using the great skill. And of course the Russians are 0:20:08.280 --> 0:20:12.280 using the Iranian drones at the pummel uh Ukrainian infrastructure, 0:20:12.320 --> 0:20:14.560 so we need to give them the means to provide 0:20:15.119 --> 0:20:18.159 adequate air defenses against those so that again we can 0:20:18.200 --> 0:20:23.160 protect the Sivellans in Ukraine and Silvellian infrastructure and that's 0:20:23.160 --> 0:20:26.200 form a defense secretary market Askeper is speaking to David 0:20:26.240 --> 0:20:29.640 weston Bloomberg's Balance of Power. You can catch that show 0:20:29.680 --> 0:20:33.280 weekdays at neon Bloomberg Radio and Television. Come I up 0:20:33.280 --> 0:20:37.320 next this morning's top stories, plus your local headlines, and 0:20:37.800 --> 0:20:40.760 check on the markets right now ahead of the cash 0:20:40.800 --> 0:20:44.800 open down Futures sixties six points higher. First, let's get 0:20:44.800 --> 0:20:47.359 a look at today's Bloomberg weather for a cast, and 0:20:47.520 --> 0:20:50.879 to do that for us, here's Rob Caroline. Some clowning. 0:20:50.920 --> 0:20:53.080 This will be drifting down from the north and west today, 0:20:53.119 --> 0:20:55.600