Speaker 1: Markets, headlines and breaking news twenty four hours a day
Speaker 1: at Bloomberg dot com, the Bloomberg Business Outland at Bloomberg
Speaker 1: Quick Tape, She's a Bloomberg business flash and I'm Karen Moscow.
Speaker 1: And futures are higher led by technology shares. We checked
Speaker 1: the markets all day long year on Bloomberg SMP futures
Speaker 1: up half percent of seventeen points down, features up two
Speaker 1: tens of a percent or seventy four points, and nosday
Speaker 1: futures up seven tenths of a percent or seventy five points.
Speaker 1: The decks in Germany's up about two tenths of a percent.
Speaker 1: Ten year treasury up one thirty second deal three point
Speaker 1: eight seven percent. That yield on the two year four
Speaker 1: point three six percent. NIMEX screwed oil is down one
Speaker 1: percent on ninety four cents at seventy eight dollars two
Speaker 1: cents of Barrel Comic School down a tenth of a
Speaker 1: percent or two dollars fifty cents at eighteen thirteen thirty announced.
Speaker 1: The euro one point oh six three nine against the dollar,
Speaker 1: British pound one point two zero two six, the yen
Speaker 1: one thirty three point seven three and bit growing up
Speaker 1: about half percent and about sixteen thousand, six hundred dollars.
Speaker 1: And as a Bloomberg Business flash, John all right, Karen,
Speaker 1: thanks very much. Is now all six fifty six on
Speaker 1: Wall Street. Time to take a look at stocks, some
Speaker 1: of the names that are moving in the pre market.
Speaker 1: And for that we're joined by Bloomberg Radio and TV
Speaker 1: Markets correspondent Kritty Gupta. Here's a quiz. What stock brought
Speaker 1: a windfall of seventeen billion dollars for shorts last year
Speaker 1: or this year? You know it's your first stock, it
Speaker 1: is my first stock. I just wanted to make sure
Speaker 1: that I was right. I'm just I'm just staring at stump.
Speaker 1: The reporter Tesla is the first doc C s L
Speaker 1: a day win the pop quiz series about four point
Speaker 1: four percent this morning. Let's come back to you after
Speaker 1: an analyst kind of I will say standpard approval reconfirmation.
Speaker 1: I would say Morgan Stanley of Adam Jonas over there,
Speaker 1: the analyst saying that he d rating in the ev
Speaker 1: company stock has created did an opportunity. He did lower
Speaker 1: his private price target to two fifty dollars from three
Speaker 1: hundred and thirty, but he is sticking to his overweight rating.
Speaker 1: Tesla shares now training about a hundred and seventeen dollars.
Speaker 1: So basically, he's saying that those wave of analysts downgrades
Speaker 1: that I had pressured the stock in the last couple
Speaker 1: of days and arguably weeks, He's sticking to his guns
Speaker 1: here and saying, well, look that is actually making it
Speaker 1: a little bit cheaper to hop into. So nevertheless, Tesla
Speaker 1: shares t s l A up four point four percent,
Speaker 1: down a hundred and seventeen or excuse me, um training
Speaker 1: around a hundred and seventeen a share. And this is
Speaker 1: also important because it's coming after about seven days of losses.
Speaker 1: Yesterday was its first positive day. Let see if it
Speaker 1: holds into today. Maybe in a Tesla and a peer
Speaker 1: to peer car sharing marketplace. I have a car sharing
Speaker 1: um program at my house with a teenager. It doesn't work.
Speaker 1: What's this next stock? Let's talk about the stock called
Speaker 1: Get Around g E. T R shares are up. While
Speaker 1: they were about three point three percent, they are now
Speaker 1: up about one percent. This is a stock that was
Speaker 1: initiated with an overweight rating and just a one dollar
Speaker 1: fifty cent price target. One of those really tiny stocks
Speaker 1: but worth remembering because it's one of the only movers
Speaker 1: out there this morning over a Piper Sandler, they're saying
Speaker 1: that the platform looks well positioned to provide, to your point,
Speaker 1: pier to pier car sharing marketplace. Um. The other one
Speaker 1: I really want to point out here is the oil story,
Speaker 1: because you are seeing oil come down a little bit
Speaker 1: uh this morning, and that is having a ripple effect
Speaker 1: into Exxon and Chevron as well. X O M is
Speaker 1: your taker DWN about seven tenths of one percent and
Speaker 1: Chevron not far behind a cv X down eight tenths
Speaker 1: of one percent. A lot of this has to do
Speaker 1: with this idea of is a Chinese reopening inflationary or disinflationary? Yeah,
Speaker 1: I mean it's interestion. We were talking about that today
Speaker 1: because it's like, I'm kind of kind of confused. Second
Speaker 1: largest economy reopens, good, right, you know, oil run, But
Speaker 1: then you have the well we hadn't COVID spread possibly
Speaker 1: we had an oil analyst on early edition this morning
Speaker 1: bloomber Television actually talking about, well, look, China's domestic demand
Speaker 1: and is going in domestic tourism is going to wrap
Speaker 1: up from reopening, which is of course a bullish river.
Speaker 1: But the spread of COVID, to your point, could be
Speaker 1: a bearish one. All right, Bloomberg Radio and TV Markets
Speaker 1: correspondent crittic Group to thank you, appreciated Critty and looking
Speaker 1: at stocks as the whole ahead of the open SMP
Speaker 1: futures of seventeen right now down future is up seventy
Speaker 1: four and the state futures up seventy four. And for
Speaker 1: Karen Moscow, I'm John Tucker. To stay with Just ahead,
Speaker 1: you can hear Bloomberg Surveillance live from the financial capital
Speaker 1: of the world broadcasting across below. This is w VBR
Speaker 1: New York Bloomberg he limon Frio. I don't see any
Speaker 1: reason for the Fed to be moving that two percent target.
Speaker 1: We finally have come to grips with markets, headlines and
Speaker 1: breaking news twenty four hours a day at Bloomberg dot Com,
Speaker 1: the Bloomberg Business at and at Bloomberg Quick Take, She's
Speaker 1: a bloom Burn Business Lash and I'm Karen Monstcaw and
Speaker 1: futures are on the rise. This morning, led by tech Shares,
Speaker 1: we get the first word breaking news dance for today's
Speaker 1: morning call. And here's Tatiana Darry Tatiana, good morning, Good morning, Karen,
Speaker 1: futures are holding around the highs, with the dull contracts
Speaker 1: up sixty two points, S and P s up sixteen
Speaker 1: and nastacap seventy two. The U S tenure yield is
Speaker 1: lower by one basis point to a three spot eight
Speaker 1: seven percent. This morning. Oil is down to and the
Speaker 1: dollar is weak or by about two tenths. Elsewhere. European
Speaker 1: stocks are slightly higher at this hour, while Asian markets
Speaker 1: fell overnight. Back in the US on the economic front,
Speaker 1: today we have jobless claims at eight thirty. In early
Speaker 1: trading this morning, Tesla on the move again, shares up
Speaker 1: five percent after Morgan Stanley said hears are more attractive
Speaker 1: after the recent decline, and Netflix is up one after
Speaker 1: an upgrade at CFR eight. In other news, Get Around
Speaker 1: was initiated with an overweight at Piper Sandler and keep
Speaker 1: an Eye of Sketcher shares after Piper gave it a
Speaker 1: neutral rating, calling its valuation fair. Live from the first
Speaker 1: and breaking news task, I'm Tatiana, Daria Karen very Tatiana,
Speaker 1: thank you and here live breaking news of your Bloomberg
Speaker 1: type squawk on your terminal ascue you a w K
Speaker 1: and as a Bloomberg Business Flash. Now here's Michael Barr
Speaker 1: with more on what's going on around the world. Michael,
Speaker 1: paren thank you very much. More than twenty three hundred
Speaker 1: Southwest flights are already canceled today, marking the fourth strade
Speaker 1: day of the airline has canceled more than fifty percent
Speaker 1: of its scheduled flights, and all more than thirteen thousand
Speaker 1: Southwest flights of the past week been canceled. The U
Speaker 1: S is reinstating mandatory COVID nineteen testing for airline travelers
Speaker 1: arriving from China. The CDC says the new measures follow
Speaker 1: a surgeon infections in China and a lack of transparency
Speaker 1: from Chinese officials. A massive fire at a Cambodian hotel
Speaker 1: casino has killed about a dozen people. In the NBA,
Speaker 1: the Nets won their tenth straight, the Wizards and Warriors one.
Speaker 1: In the NHL, the Bruins Devils three one. Global news
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Take, powered by more than journalists analysts in more
Speaker 1: than a d twenty countries. I'm Michael Barr, and this
Speaker 1: is Bloomberg. Karen you. It is six forty two on
Speaker 1: Wall Street, and we turned to news and science and
Speaker 1: technology now at the Bloomberg and j I. T. Stem Report,
Speaker 1: and here's just making news and science, technology, engineering and math.
Speaker 1: South Korea's semiconductor production in November felt by the most
Speaker 1: since the global financial crisis, pointing to a further cooling
Speaker 1: of overseas demand for tech components. Chip production shrank for
Speaker 1: a fourth straight month, following fift from a year earlier,
Speaker 1: for the largest drops ince two thousand nine. According to
Speaker 1: data from the National Statistics Office, Lithium will get less
Speaker 1: expensive in this according to a Chinese supplier or the
Speaker 1: battery metal, potentially offering some relief to electric vehicle makers
Speaker 1: sweezed by soaring costs. More supplies emerged to trim abnormally
Speaker 1: high margins for lithium producers, according to the chairman of
Speaker 1: Sina Mine Resource Group and the value of I P O,
Speaker 1: S C M and as in Israel's tech industry this
Speaker 1: year fell substantially from one levels. Rising interest rates and
Speaker 1: economic uncertainty forced a reckoning. According to our report by
Speaker 1: p w C found they were seventy two deals in
Speaker 1: two down from one the previous year, with most of
Speaker 1: transactions taking place in the first half of the year,
Speaker 1: and as the Bloomberg and J. I. T. Stem Report, John,
Speaker 1: all right, Karen, thanks a lot, appreciated the e is
Speaker 1: sixty four Ound Wall Street. Time to check what's going
Speaker 1: on in d C. Some of the top stories in
Speaker 1: the nation's capital include what political prognosticators are facing A
Speaker 1: mountain of unknowns for the coming year, starting with whether
Speaker 1: President Joe Biden is going to seek a second term?
Speaker 1: A great piece from Bloomberg Opinion. It raises all sorts
Speaker 1: of questions for the new year. And who better to
Speaker 1: explore these questions with this morning? Joining us is Wendy Shiller,
Speaker 1: director of the Center for American Politics and Policy at
Speaker 1: Brown University. Always a pleasure, Professor, Thanks for being with us.
Speaker 1: President Biden, will you seek another term? There are other cliffhangers,
Speaker 1: including whether former President Donald Trump will be indicted, whether
Speaker 1: Kevin McCarthy's going to succeed in getting elected Speaker of
Speaker 1: the House. Let's start with Joe Biden. Um, how do
Speaker 1: we divine what his plans might be? Well, he's I mean,
Speaker 1: he's a leader of the Democratic Party, as a leader
Speaker 1: of quote unquote the free world. Uh, it seems you know,
Speaker 1: very very likely that he will aside to announce that
Speaker 1: he is seeking the presidency again, if only as a placeholder.
Speaker 1: In other words, you know, the Democrats feel like they
Speaker 1: came off a good year productivity and they sort of
Speaker 1: narrowly escaped somewhat of a glooming disaster in the mid terms.
Speaker 1: They did much better than people think. Uh, and things
Speaker 1: in the economy seem to be dire going to three
Speaker 1: then people saw a couple of months ago. So it
Speaker 1: doesn't make any sense not to run. Uh, you know,
Speaker 1: you have a whole technically a whole year file, but obviously,
Speaker 1: you know, you want people to believe that you're still
Speaker 1: going to be there after for anything that you want
Speaker 1: to get done in the next two years, So it
Speaker 1: makes sense to announce. I mean, you can always change
Speaker 1: your mind, you can always drop out, you can always
Speaker 1: with draw. There doesn't seem to be a very solid
Speaker 1: Democratic backbencher that could take his place easily to lead
Speaker 1: the party in twenty four so it makes no sense
Speaker 1: not to run. We know he's running for president Donald Trump.
Speaker 1: Is it going to be indicted anytime soon? You know,
Speaker 1: I think there are two very strong looming issues for
Speaker 1: the country in terms of literally stability in the system. Uh.
Speaker 1: You know, we've kind of gone through the elections. We
Speaker 1: made it through the elections, and elections seem to work
Speaker 1: for the most part, so that element of our democracy
Speaker 1: seems to be stable. But if you do not have
Speaker 1: a stable speaker at the House, you can't run the
Speaker 1: set whole coming it. If you don't have a stable
Speaker 1: majority party, you can't run the federal government. So this
Speaker 1: is really really important that Kevin McCarthy, if he's going
Speaker 1: to be speaker, gets elected smoothly and that he can
Speaker 1: can control his party. Not to mention the debt ceiling
Speaker 1: coming up, but just for functionality, you need a functional
Speaker 1: majority party in the House. Uh. And if you indict
Speaker 1: Donald Trump, um, that may actually push the party to
Speaker 1: more unity. Republican Party against that effort. So it's sort
Speaker 1: of ironic that the thing that might destabilize one part
Speaker 1: of the sector of the country Trump supporters might actually
Speaker 1: stabilize the leadership and the Republican Party in the House. Well,
Speaker 1: these are the two things that I'm looking at most
Speaker 1: of all. Uh. You also alluded to at the federal
Speaker 1: government set to hit the borrowing limits sometime next year,
Speaker 1: with Republicans taking control of the House. Uh, will we
Speaker 1: default on our debt? Well, that is just an extraordinarily
Speaker 1: important concern. Uh. You know, if McCarthy can bring which
Speaker 1: the Speaker can do if he points to write people
Speaker 1: to the quote unquote Rules Committee, that's the committee that
Speaker 1: determines typically which bills can get to the House floor.
Speaker 1: If you can get the debt ceiling to the House floor,
Speaker 1: it'll pass because some Democrats will vote for it. They'll
Speaker 1: have to vote for it because they don't want Biden
Speaker 1: administration to have to deal with the default. So the
Speaker 1: Republicans know that McCarthy knows that he can lose a
Speaker 1: good portion of his caucus if he can get the
Speaker 1: bill and the rule approved to get get the debt
Speaker 1: seiling to the floor of the House, he can have
Speaker 1: most of his party vote against it, where the Democrats
Speaker 1: are gonna face enormous pressure to vote order it just
Speaker 1: because they want to support the Biden administration economically. And
Speaker 1: the next question that's that's raised with the Republican House
Speaker 1: impeached Joe Biden. See to me, I think that's an overreach.
Speaker 1: And I think if you've if you've been watching politics
Speaker 1: long enough, you know that new Gingridge. Eventually when he
Speaker 1: ran the House, he overreached and it costs the Republicans
Speaker 1: called him in particular, but it cost the Republicans. And
Speaker 1: I think, um, I think this is something that McCarthy
Speaker 1: has to think about. You know, will the House Republicans
Speaker 1: care about the twenty four presidential race or they just
Speaker 1: decide thing that they you know, they want to be
Speaker 1: in the majority and want to stay in the majority,
Speaker 1: and impeaching will mobilize their local base in the constituencies
Speaker 1: that they won. But think about the conference people from
Speaker 1: New York in particular and California, the new Republicans elected there,
Speaker 1: I'm not sure they are constituencies have the stomach to
Speaker 1: go through an impeachment of Joe Biden. And if those
Speaker 1: are the seats that gave you the majority, then you
Speaker 1: have to wear about holding onto them. And that's going
Speaker 1: to be the calculation Macarti is gonna have to make
Speaker 1: odd number years when you are when the bulk of
Speaker 1: candidate recruitment happens for a Senate and gubernatorial candidates. So
Speaker 1: the question arises in the next minute that we have
Speaker 1: will Republican recruitment for these races go better than they
Speaker 1: did this year well in trem And the big, big
Speaker 1: problem in the Senate races, what are the people who
Speaker 1: were endorsed by Trump, who are election deniers, who are
Speaker 1: sort of quote unquote living in the past. There seems
Speaker 1: to be a lot of rhetoric coming out of Republican
Speaker 1: Party people saying we're gonna move forward and move forward,
Speaker 1: looking to the future. This is what positions were onto
Speaker 1: santas governor of governor elect to being reelected in Florida.
Speaker 1: Uh so, well going into the twenty four races, so
Speaker 1: we'll see how that goes. That you've got George Santos
Speaker 1: and New York who lied pretty much about everything it
Speaker 1: seems in his background, and now you've got a real
Speaker 1: problem again, they've got a credibility problem. Is this the
Speaker 1: kind of Republican party that Independence will support in congressional
Speaker 1: races and the presidential race? And so far we saw
Speaker 1: Independence go slightly for the Democrats in two And the
Speaker 1: only way the Republicans hold on the majority is if
Speaker 1: they can moderate some of these uh these rhetorical issues
Speaker 1: and also truthful issues um and hold onto those seats
Speaker 1: they picked up. And that's the big challenge for them
Speaker 1: and right now. You know, we have no idea how
Speaker 1: they gonna to do that. When do you always a pleasure?
Speaker 1: When doy Show a Director's Center for American Politics and
Speaker 1: Policy at Brown University. You're listening to Bloomberg Markets, headlines
Speaker 1: and breaking news twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business at and at Bloomberg Quicktake,
Speaker 1: He's a Bloomburn business flash and I'm kared Moscow. You
Speaker 1: guys knock into X futures on their rise this morning,
Speaker 1: led by technology shares, and we check the markets all
Speaker 1: day long here on Bloomberg s and P futures up
Speaker 1: four tens of up percent of seventeen points and down
Speaker 1: futures of two tens of upper cent or sixty eight points.
Speaker 1: NASAIC future is up seven tenths of a percent, or
Speaker 1: seventy eight points. The decks in Germany's of a tenth
Speaker 1: of upper cent and your treasury up three thirty seconds.
Speaker 1: You have three point eight seven percent They yield on
Speaker 1: the two year four point three five percent. Nine excret
Speaker 1: oil is down one point four percent out of dollar
Speaker 1: ten at seventy seven dollars eighty five cents of barrel
Speaker 1: comex school down two tenths percent or three dollars ten
Speaker 1: cents at eighteen twelve seventy announced the euro one point
Speaker 1: oh six three three against the dollar, British found one
Speaker 1: point two zero to eight, then one thirty three point
Speaker 1: seven five and Bitcoin this morning up half percent at
Speaker 1: about sixteen thousand, five hundred ninety dollars. And that's a
Speaker 1: Bloomberg business flag show. Here's Michael Barr with more. I'm
Speaker 1: what's going on around the world, Michael Karen, thank you
Speaker 1: very much. Southwest is trying to recover from one of
Speaker 1: the worst airline meltdowns in US history. Passengers are still
Speaker 1: stranded all over the country. Another twenty three hundred Southwest
Speaker 1: flights have been canceled for today. The US and Italy
Speaker 1: joined an increasing number of nations requiring COVID tests for
Speaker 1: travelers from China. Concerns are mounting over the risk of
Speaker 1: any new variants emerging from the surgeon infections in the country.
Speaker 1: In the NBA, the Nets one their tenth straight, the
Speaker 1: Wizards and Warriors one. In the NHL, the Bruins beat
Speaker 1: the Devil's three one. Global news twenty four hours a
Speaker 1: day on here and on Bloomberg Quick Take powered by
Speaker 1: more than twenty seven under journalist and analyists more than
Speaker 1: twenty countries. I'm Michael bar This is Bloomberg. Michael, thank you,
Speaker 1: six twenty three on Wall Street. I'm John Tucker. You're
Speaker 1: listening to Bloomberg day Break. Overnight, Russia ramped up attacks
Speaker 1: on major cities in Ukraine. It comes as the Russian
Speaker 1: Foreign Minister Sergei Lavrov ruled out peace talks to in
Speaker 1: the war, that's in spite of major losses and sent
Speaker 1: backs on the battlefield for Russia. The former US Defense
Speaker 1: Secretary Market Aspert, weighing in on the conflict, he sent
Speaker 1: down to discuss the war with Bloomberg's David Weston. Let's
Speaker 1: turn to Ukraine, which we've talked about in the past.
Speaker 1: As you say, there was that dramatic speech from President
Speaker 1: Zelinsky before the Joint Meeting of Congress UH and I
Speaker 1: wonder what you took away from that and whether, in
Speaker 1: fact the United States should be perhaps changing its attitude
Speaker 1: toward Ukraine, because certainly President Lensky was not shy but
Speaker 1: saying he really appreciates what he's gotten, but he needed
Speaker 1: leads an a lot more things like fixed wing aircraft,
Speaker 1: things like longer range missiles. His visit was very important,
Speaker 1: His speech was very impressive. It sent a message to
Speaker 1: the Russians, of course, that the United States was standing
Speaker 1: behind them, particularly as we head into the winter months
Speaker 1: right now. And it was a chance for Biden President
Speaker 1: buying a message the American people and for us to
Speaker 1: message the allies. And look, I think we've done a
Speaker 1: good job, but we could be doing so much more.
Speaker 1: They do need fixed wing aircraft, they do need tanks. Uh,
Speaker 1: they do need the means to conduct an offensive campaign,
Speaker 1: to do a counter offensive. That's how you break a
Speaker 1: trench warfare type stalemate that we're kind of seeing now.
Speaker 1: That's at the operational level. At the strategic level, they
Speaker 1: need far more and greater air defenses. And look, the
Speaker 1: United States has done a lot, but we need our
Speaker 1: allies to do a whole lot more. Most of our
Speaker 1: allies have contributed less than six hundred million dollars or
Speaker 1: so in military aid. The United States tens of billions
Speaker 1: of dollars. So if we can get more of our
Speaker 1: allies to do more of that, to provide those critical
Speaker 1: arms and pieces of equipment that I just mentioned, we
Speaker 1: can allow the Ukrainians to get on the offensive, to
Speaker 1: push the Russians out and bring this war to a
Speaker 1: quicker conclusion than than the path that looks to be
Speaker 1: on right now. Well, that's just what I want to
Speaker 1: ask about going on the offensive, as you just said,
Speaker 1: because I think in some quarters that might be thought, well,
Speaker 1: this is turning sort of into a stalemate and this
Speaker 1: will go on for a long time, become chronic. It
Speaker 1: looks like perhaps that's what letter of Putin wants. If
Speaker 1: the Ukrainies are not winning this war, are they losing
Speaker 1: it ultimately? Now not necessarily, but again the country would
Speaker 1: remain occupied. And what we don't want is another frozen
Speaker 1: conflict like we have in Georgia or Moldova. So the
Speaker 1: Ukrainians have the momentum right now. We need to supply them.
Speaker 1: And you're right, put And strategy is to weait us out.
Speaker 1: I mean, that's why he is. He is hammering uh
Speaker 1: Ukrainian cities, infrastructure, energy resources with ballistic missiles and drones.
Speaker 1: He wants to break the back, break the will of
Speaker 1: the Ukrainian people. We now see he's putting in barbo
Speaker 1: if you will, on countries that put a price cap
Speaker 1: on oil. He wants to freeze them out, frees us
Speaker 1: out a little bit. Also, he is playing for time,
Speaker 1: thinking that we will we will wobble, we will weaken,
Speaker 1: and look, there's some truth to that in the past,
Speaker 1: we've seen that. So it's important that we hold on.
Speaker 1: But at the same time give Ukraine what they need
Speaker 1: to win. They have the will, they have, the courage,
Speaker 1: they had the resolve. They've been showing a great deal
Speaker 1: of grit and success on the battle field. We need
Speaker 1: to help enable that. How important our drones in this
Speaker 1: ca battle on both sides, the drone technology and of
Speaker 1: course counter drone technology as well, critically important. But you
Speaker 1: see the Ukrainians not using them to conduct long range
Speaker 1: strikes hundreds of miles in the Russian territory to attack
Speaker 1: air fields from which Russians are launching bombers, so they're
Speaker 1: using the great skill. And of course the Russians are
Speaker 1: using the Iranian drones at the pummel uh Ukrainian infrastructure,
Speaker 1: so we need to give them the means to provide
Speaker 1: adequate air defenses against those so that again we can
Speaker 1: protect the Sivellans in Ukraine and Silvellian infrastructure and that's
Speaker 1: form a defense secretary market Askeper is speaking to David
Speaker 1: weston Bloomberg's Balance of Power. You can catch that show
Speaker 1: weekdays at neon Bloomberg Radio and Television. Come I up
Speaker 1: next this morning's top stories, plus your local headlines, and
Speaker 1: check on the markets right now ahead of the cash
Speaker 1: open down Futures sixties six points higher. First, let's get
Speaker 1: a look at today's Bloomberg weather for a cast, and
Speaker 1: to do that for us, here's Rob Caroline. Some clowning.
Speaker 1: This will be drifting down from the north and west today,
Speaker 1: but we should see some sunshine through those clouds. Temperatures
Speaker 1: up to fifty this afternoon, apparently cloudy over night thirty
Speaker 1: to thirty five and the city twenties in the suburbs
Speaker 1: partial sun close to fifty tomorrow. The outlook for Saturday
Speaker 1: cloudy with rain late today fifty to fifty five. It
Speaker 1: looks rainy for New Year's Eve that rain. Who's out
Speaker 1: Sunday we turned partly sunny. I'm Rob Carolyn with your
Speaker 1: weekend forecast on Bloomberg eleven three oh broadcasting live from
Speaker 1: the Bloomberg Interactive Broker Studio in New York Bloomberg in
Speaker 1: Living Free On to Washington, d C, Bloomberg one to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg sixty
Speaker 1: to the country, Sirius XM H one nine ten, and
Speaker 1: around the globe, the Bloomberg Business and Bloomberg Radio dot com.
Speaker 1: This is Bloomberg Daybreak. It's coming up on six thirty
Speaker 1: Wall Street. Good morning. I'm John Tucker and I'm Karen Moscow.
Speaker 1: We are nearly three hours away from the open of
Speaker 1: US trading. Time for the five Things that you need
Speaker 1: to know to start your day, brought to you by
Speaker 1: Innovation Refunds. Your business may be eligible to receive a
Speaker 1: payroll tax refund. The application takes around eight minutes eight
Speaker 1: minutes or less to see if you're small to medium
Speaker 1: sized business may be eligible for a refund of up
Speaker 1: to twenty six thousand dollars per employee kept on the
Speaker 1: payroll during the pandemic. Find out it get refunds dot
Speaker 1: com first. As COVID cases climbed in China, the US
Speaker 1: plans to require COVID testing for travelers from the country.
Speaker 1: Officials are concerned about new variants in China's lack of
Speaker 1: transparency with COVID data. Italy will also begin testing arrivals
Speaker 1: from China and wants other European countries to do the same.
Speaker 1: And we have news on the war in Ukraine this morning.
Speaker 1: The Russian Foreign Ministers Sergey lam Roth says Moscow will
Speaker 1: not enter into negotiations to end the war. This comes
Speaker 1: as Russia launched another missile barrage of major cities in Ukraine.
Speaker 1: The former Defense Secretary Mark Asper says the US can
Speaker 1: and should provide further support for Ukraine. It's important that
Speaker 1: we hold off at the same time give Ukraine what
Speaker 1: they need to win. They have the will, they have,
Speaker 1: the courage, they had, the resolved they and showing a
Speaker 1: great deal of grit and success on the battlefield. We
Speaker 1: need to help enable that. Former Defense Secretary Market Asper
Speaker 1: speaking with David Weston on Bloomberg's Balance of Power. Catch
Speaker 1: the show weekdays at noon on Bloomberg Radio and Television.
Speaker 1: Well to Ball Street Now John where layoffs are front
Speaker 1: and center. Goldman Sax is working on a fresh round
Speaker 1: of staff cuts. CEO David Solomon made the announcement and
Speaker 1: as you're on message to staff, saying the cuts will
Speaker 1: be unveiled in a matter of weeks and looking at
Speaker 1: markets right now, US futures they are higher following two
Speaker 1: days of losses. COVID concerns out of China weighing on
Speaker 1: some of the sentiment, but Jonathan Gollub, head of US
Speaker 1: equity strategy at Credit sweets so steady wages can provide
Speaker 1: some stability next year. Wages don't look like they're gonna
Speaker 1: fall as much for the average consumer. They're going to
Speaker 1: get a stronger wage increase. The things they buy are
Speaker 1: and we are going to go off as much as
Speaker 1: their wages, and yet jobs are really plentiful. Jonathan Gollub
Speaker 1: with Credit sweet says he thinks there will be positive
Speaker 1: market movement early next year. And travel meltdown has stranded
Speaker 1: thousands of passengers has led to more flight cancelations. John
Speaker 1: Bloomberg Steve Rappaport joins US Live with more. Steve, good Morning,
Speaker 1: Good Morning, Karen, and John's Southwest blames bad weather for
Speaker 1: its problems, but aviation experts say snow was only one
Speaker 1: of the elements that created the perfect storm. They point
Speaker 1: to issues like tight turnaround times, faulty phone systems, and
Speaker 1: outdated software. Analysts and unions warned for years that Southwest
Speaker 1: needed to invest in new technology. Those warnings proved costly,
Speaker 1: as Southwest Ground did more than twenty three dred additional
Speaker 1: flights today, But Grace guys look to be clearing up
Speaker 1: for the carrier. So far, Southwest only canceled a few
Speaker 1: dozen flights for tomorrow. That's according to the flight tracking
Speaker 1: site flight Aware Live in New York. I'm Steve Rappaport
Speaker 1: Bloomberg Day Break. All right, Steve, thank you. That's the
Speaker 1: five things you need to notice start your day. Brought
Speaker 1: to you Vy Innovation refunds and this is Bloomberg. Thanks,
Speaker 1: Wall Streets. Time to bring in Michael Barr with more
Speaker 1: what else is going on in New York and a
Speaker 1: on the world, John, Thank you very much. Sarah. The
Speaker 1: National Guard went door to door in parts of Buffalo
Speaker 1: to check on people who lost power during the area
Speaker 1: as deadly as winter storm in decades. Already, about three
Speaker 1: dozen deaths have been reported in western New York from
Speaker 1: the blizzard. Buffalo Mayor Byron Brown again, as you know,
Speaker 1: this was a historic storm, probably the worst storm that
Speaker 1: the city has seen in over fifty years, and perhaps
Speaker 1: maybe the worst storm in recorded history. UH. Since these
Speaker 1: storms have been tracked, Mayor Brown says a travel ban
Speaker 1: has been lifted. Congressman elect George Santos of New York
Speaker 1: is under investigation by Long Island prosecutors. Revelation surface that
Speaker 1: the now embattled Republican line about his heritage, education, and
Speaker 1: professional pedigree as he campaigned for office. Nassau County District
Speaker 1: Attorney and Donnelly, also a Republicans, said the fabrications and
Speaker 1: inconsistencies were nothing sort of stunning. The US State Department
Speaker 1: has approved a possible military sale to Taipei for anti
Speaker 1: tank munition laying systems and related equipment. It's for an
Speaker 1: estimated cost of a hundred eighty million dollars. It's opening
Speaker 1: day to sell legal pot in New York. The first
Speaker 1: dispensary is in Manhattan at a housing works Kinnabis company
Speaker 1: in Greenwich Village. Attorney Michael Bass is co chair of
Speaker 1: the Cannabis Law Group at Abram's instrument. This is the
Speaker 1: first dispenser of a program that is still in its infancy,
Speaker 1: and I suspect the lines are going to be pretty
Speaker 1: long for some time to come. UH as this program
Speaker 1: grows and grows attorney Michael Bass says there are limitations
Speaker 1: in terms of grams announces to what you can purchase
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomber Quick Take, powered by more than journalist analysts,
Speaker 1: more than a d twenty countries. Michael bar this is Bloomberg, John, Michael,
Speaker 1: thank you. You guys have six third three all Wall Street. Yea,
Speaker 1: that is time for the Bloomberg Sports Report. Big brought
Speaker 1: you by your TRN State Counties Heelers. Yeah. Thanks John.
Speaker 1: That's the first NBA team this season to real off
Speaker 1: ten consecutive wins. They held on in Atlanta, one of eight,
Speaker 1: one of seven. The Hops MR game when he shot
Speaker 1: at the Nkyrie irving twenty eight points. Kevin ran at
Speaker 1: twenty six with sixteen rebounds. It's the Nets longest win
Speaker 1: streak since two thousand six. Nicks are in San Antonio
Speaker 1: tonight the Rangers visit Tampa Bay. The Devil's just lost
Speaker 1: at home to the NHL leading Bruins three to one.
Speaker 1: College Troops St. John's lost to the Big East Xavier
Speaker 1: Fordham's Atlantic ten opener a home lost to Davidson. Yukon
Speaker 1: beat Villanova. The Huskies are fourteen and oh they are
Speaker 1: ranked second in the country. Quarterback news Derek Carr benched
Speaker 1: by the Raiders. He's been their starter for nine years
Speaker 1: with fourteen interceptions this season. Jared Stidham will replace him,
Speaker 1: and this figures the lead to Las Vegas moving car
Speaker 1: in the off season and Jets could be looking for QUB.
Speaker 1: Washington is going back to Carson Wins replacing too or
Speaker 1: Heina Key Wentz hasn't started since Week six, and the
Speaker 1: Commanders are part of that battle for the last two
Speaker 1: NFC wild card spots. Miami and New England in it
Speaker 1: for one wild card in the a f C. They
Speaker 1: placed Sunday in Foxboro. The Dolphins QB will be Teddy
Speaker 1: Bridgewater to a Tamabaloa has his second concussion of the season.
Speaker 1: They'll play the Pin Stripe Bowl at Yankee Stadium this
Speaker 1: afternoon Syracuse against Minnesota. The Red Sox of st seven
Speaker 1: year old Corey Cloobury want to Cy Young's with Cleveland.
Speaker 1: He spent this past season with Tampa Bay through a
Speaker 1: no hitter in the Yankees. John stash Award Sports John,
Speaker 1: all Right, thanks John. The Bloomberg Sports Report. Brown you
Speaker 1: buy Audie, don't let someone else drive off in the
Speaker 1: Audi model you've always wanted. Visit your local Tri state
Speaker 1: Audi dealer to get behind the wheel of yours today,
Speaker 1: or visit Audie Offers dot com for more information. Right now,
Speaker 1: SMP futures up seventeen. It's now six thirty fives on
Speaker 1: Wall Street. Bloomberg Radio is on the year from San
Speaker 1: Francisco to New York, London to Hong Kong. Let's check
Speaker 1: in now with our global news team for some of
Speaker 1: the top stories heard on our three hundred at Philliget
Speaker 1: radio stations around the world. I'm Steve Potosk. On w
Speaker 1: h S and Louisville, We're talking about some negative online
Speaker 1: reactions to a test run of Taco Bell's plans for
Speaker 1: new burritos. I'm Jeff Bellinger. And on Cogo in San Diego,
Speaker 1: I'll be talking about how Starbucks customers from California and
Speaker 1: New York accused the coffee chain of deceptively advertising its
Speaker 1: sprouted grain bagel and Kimberly Adams. And on w DZ
Speaker 1: in Boston, I'll be reporting on Goldman Sachs employees facing
Speaker 1: a new year with new job cuts. I'm Stephen Carol
Speaker 1: and Bloomberg DAB Radio in London. We've been reporting on
Speaker 1: the European countries considering more restrictions on travelers from China
Speaker 1: as Beijing's as its COVID rules, and those are some
Speaker 1: of these stories are twenty seven hundred Bloomberg journalists and
Speaker 1: analysts are working on this morning around the world. It
Speaker 1: is now six thirty seven on Wall Street. That's time
Speaker 1: for daily Bloomberg Real Estate Report. And here with that
Speaker 1: it's bloombergs Denys Fella Greeny. Inflation is usually pretty good
Speaker 1: for real estate investments, but Rich Hill, head of real
Speaker 1: estate strategy and Research at count and Steers Capital Management, says,
Speaker 1: not this time. What is challenging for real estate stagflation.
Speaker 1: So what is stagflation? It's it's an environment where interest
Speaker 1: rates are rising and growth is slowing. That's exactly what
Speaker 1: played out for most of two thousand and twenty two,
Speaker 1: where the Fed had to raise interest rates to combat
Speaker 1: inflation that was at its highest level since in nten eight.
Speaker 1: On the other hand, Hill says things are looking up
Speaker 1: for real estate returns in three because we see a
Speaker 1: backdrop where growth is slowing still in two thousand twenty three,
Speaker 1: but rache are beginning to come down, so we would
Speaker 1: call that a stagnationary backdrop. As you transition from stagflation
Speaker 1: to stagnation, that's a much better backdrop for for for
Speaker 1: real estate in general. Economist way survey'd say housing starts
Speaker 1: and building permits probably continue to fall in December, and
Speaker 1: that's the Bloomberg real estate port. I'm to these pelogreny
Speaker 1: and investors betting against Tesla are getting a big bonanza
Speaker 1: they've been waiting for, with the electric vehicle maker center
Speaker 1: recording its worst annual performance on record. Short sellers in
Speaker 1: the company these are parish investors that stand again when
Speaker 1: the price of an asset falls. Their poised to rate
Speaker 1: market to market profits of about seventeen billion dollars, making
Speaker 1: Tesla the most profitable short trade of the year. This
Speaker 1: is all according to data from S three Partners. Tesla
Speaker 1: has a tumbled more than forty two percent in December alone,
Speaker 1: driving into a loss of sixty eight percent this year. Well,
Speaker 1: this morning, ahead of the market opened Tesla in the
Speaker 1: pre market right now up four point eight percent. You're
Speaker 1: listening to Bloomberg Daybreak Live from the Bloomberg in directed
Speaker 1: Berger Studios. Is this Bloomberg Daybreak for a Thursday, December
Speaker 1: twenty nine coming up a shur new restrictions of travelers
Speaker 1: from China and the country scales back COVID policies. Gullman
Speaker 1: Ready for a fresh round of layoffs in the new year.
Speaker 1: Markets look for a Santa Claus rally. It's a closed
Speaker 1: two and Russia rules out peace talks with Ukraine. Prosecutors
Speaker 1: are investigating New York Congressman elect Santos after false claims
Speaker 1: about his background. Plus the dig out continues in Buffalo.
Speaker 1: I'm Michael Blarr More Ahead, I'm John Stash Howard Sports
Speaker 1: make it ten straight for the Nets at one point
Speaker 1: when Atlanta the Devil's lost to the Bruins of Big East.
Speaker 1: Loss for st John. That's all strady Ahead on Bloomberg
Speaker 1: Daybreak on Bloomberg eleven three, on New York, Bloomberg nine one, Washington,
Speaker 1: d C Bloomberg one oh six one, Boston, Bloomberg nine sixties,
Speaker 1: San Francisco, Syrius Exam one nineteen, and around the world
Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg Business app. Heay,
Speaker 1: Good morning, I'm John Tucker and I'm Karen Moss. Scale
Speaker 1: US DO index futures on the rise this morning. We
Speaker 1: check the markets all day long here on Bloomberg with
Speaker 1: SNP futures have four tens of upper cent or sixteen points.
Speaker 1: Down futures have two tens of upper cent or sixty
Speaker 1: nine points, and NAS day futures have seven tens of
Speaker 1: upper cent or seventy six points. John and Carol, Let's
Speaker 1: begin with new travel restrictions targeting China as COVID cases
Speaker 1: climb of the country. The US plans to require COVID
Speaker 1: testing for travelers coming from China. Let's get the update
Speaker 1: in this report this morning from Bloomberg's and Baxter. The
Speaker 1: concern comes as cases spiral upward in China and with
Speaker 1: China not releasing data the US as transparency has disappeared.
Speaker 1: Health officials say they are concerned about the emergence of
Speaker 1: new variants, which tend to thrive with so many new cases.
Speaker 1: The US announcement came after news reports of two flights
Speaker 1: from China into Milan, Italy, where more than half the
Speaker 1: passengers tested positive. The passengers will be required to test
Speaker 1: two days before making their flight. The requirement goes into
Speaker 1: effect January five, in San Francisco. I'm at Baxter Bloomberg
Speaker 1: Gay Break. All right, and thank you well. We have
Speaker 1: news on the war in Ukraine. This morning, Russian Foreign
Speaker 1: Minister Sergei lav Rov says Moscow will not enter into
Speaker 1: negotiations to end the war. The hard line stance comes
Speaker 1: as Russia launched another missile barrage on major cities in Ukraine.
Speaker 1: Former Defense Secretary Mark Esper tells us Moscow is digging
Speaker 1: in for the long haul boot and strategies to wait
Speaker 1: us out. I mean, that's why he is hammering uh
Speaker 1: Ukrainian cities, infrastructure, energy resources with ballistic missiles and drones.
Speaker 1: He wants to break the back, break the will of
Speaker 1: the Ukrainian people. We now see he's putting up in
Speaker 1: barbo if you will, on countries that put a price
Speaker 1: cap on oil. He wants to freeze them out, free
Speaker 1: us out a little bit. Also, he is playing for Todd,
Speaker 1: thinking that we will wobble, we will weaken. Former Defense
Speaker 1: Secretary Mark Esper spoke with David Weston on Bloomberg's Valance
Speaker 1: of Power. Catch the show week days at noon on
Speaker 1: Bloomberg Radio and Television. Yeah, let's turn to Wall Street
Speaker 1: Now another sign of maybe an economic slowdown, Glook Golden
Speaker 1: Sacks is work on a fresh round of staff cuts
Speaker 1: at Bloomberg's. Charlie Pellett reports they're likely to come in
Speaker 1: a matter of weeks. That word from CEO David Solomon
Speaker 1: in his traditional year end message to staff, Solomon said, quote,
Speaker 1: we are conducting a careful review, and while discussions are
Speaker 1: still ongoing, we anticipate our head count reduction will take
Speaker 1: place in the first half of January. He says there
Speaker 1: are a variety of factors impacting the business landscape, including
Speaker 1: tightening monetary conditions that are slowing down economic activity. Earlier
Speaker 1: this month, sources said the firm may seek to eliminate
Speaker 1: as much as eight percent of its workforce, or up
Speaker 1: to four thousand jobs, to contain a slump in profit
Speaker 1: and revenue in New York. Charlie Pellett Bloomberg Daybreak. All right, Charlie,
Speaker 1: thank you about the markets. Now, US futures are higher,
Speaker 1: led by technology shares following two days of losses. Concerns
Speaker 1: are servicing over the end of Chinese COVID zero policies,
Speaker 1: But Jonathan Golub, head of US Equity strategy at Credits
Speaker 1: Suite sees positive signs for the new year. The market
Speaker 1: is of the belief that no matter what the FED says,
Speaker 1: the likelihood is that the FED is going to ultimately
Speaker 1: get closer to their inflation target. And that's a positive,
Speaker 1: and that's what the market is ultimately fixated on. And
Speaker 1: I think that's why stocks are gonna do pretty pretty
Speaker 1: well over the next several months. Trying to thank Gala,
Speaker 1: but Credit Sue says steady wages can provide some stability
Speaker 1: in three to overseas. Stocks in Asia dropped in unison overnight.
Speaker 1: Let's get the recap now from Bloomberg Day Breck Asia
Speaker 1: anchor Brian Curtis. In Hong Kong, stocks in Asia tumbled
Speaker 1: on new concerns that China's reopening would spread COVID cases
Speaker 1: around the world. There may be a day that investors
Speaker 1: embraced the reopening, but today was not that day. Equity
Speaker 1: benchmarks in Japan, Hong Kong, Australia, and South Korea all
Speaker 1: falling around one percent. Australian tenure government bond yields rose,
Speaker 1: that Donna was weaker, and the yen put on games.
Speaker 1: You know, Hong Kong. Brian Curtis Sploomberg day Break. All right, Brian,
Speaker 1: thank you, But we also have news out of the
Speaker 1: Bank of Japan this morning, the b o J announcing
Speaker 1: two additional rounds of unscheduled bond purchase operations. The move
Speaker 1: fights back against traders betting the b o J will
Speaker 1: further relax it's yield curve control policy. While taking a
Speaker 1: look at the end right now still rising against the
Speaker 1: dollar at one thirty three point eight two I. Meanwhile,
Speaker 1: oil is lower this morning, being time to concerns over
Speaker 1: COVID cases surgeon in China. As we look at Brent
Speaker 1: crew the international benchmark right now down a dollar seven
Speaker 1: of barrel at eight two nine. Well. Travel turmoil continues
Speaker 1: again this morning, John. The travel miltdown that's stranded thousands
Speaker 1: of passengers has led to more flight cancelations at Southwest Ploomberg.
Speaker 1: Steve Rappaport joins US Live with more. Steve, good morning,
Speaker 1: Good morning, Karen and John. As Southwest grounds more than
Speaker 1: twenty dred additional flights today, analysts and unions say this
Speaker 1: nightmare could have been prevented. They warned for years the
Speaker 1: carrier was playing a dangerous game by not investing in
Speaker 1: new technology. Those prophecies proved a disaster for Southwest as
Speaker 1: it struggles to recover from last week's storm. Rival airlines
Speaker 1: are mostly back to normal operations. The White House and
Speaker 1: lawmakers want to know why Southwest can't pick up the pace.
Speaker 1: Live in New York, I'm Steve Rapp, report Bloomberg Day Break.
Speaker 1: All right, thanks Steve, and we have a couple of
Speaker 1: notes this morning on Elon buss companies. Let's start with Twitter,
Speaker 1: which is restored service hours after thousands of users reported glitches.
Speaker 1: More than nine thousand users from San Francisco to Hong
Speaker 1: Kong reported problems accessing the service, and Elon mus telling
Speaker 1: Tesla employees to ignore it. Stock market craziness, as he
Speaker 1: puts it. His comments come as analysts turned bullish on
Speaker 1: the stock. Morgan Stanley this morning says d rating um
Speaker 1: in the company stock has created a buying opportunity. Most
Speaker 1: active in the pre market right now Tesla at four
Speaker 1: point eight percent. This is Bloomberg and it brings us
Speaker 1: to six or seven of Wall Street. And let's get
Speaker 1: the news from around the world and in New York.
Speaker 1: And for that we see good morning to Bloomberg's Michael
Speaker 1: Barr John, thank you very much. Buffalo lifted a travel
Speaker 1: ban just after midnight. It was put in place in
Speaker 1: the aftermath of the Christmas weekend blizzard that left the
Speaker 1: city buried under more than four feet of snow. Mayor
Speaker 1: Byron Brown conditions are such that the driving band can
Speaker 1: be lifted. We're going to keep a travel advisory in
Speaker 1: place because there will still be heavy equipment doing work.
Speaker 1: Dozens of Buffalo area residents died in the storm. New
Speaker 1: York Congressman elect George Santos is under increasing scrutiny. Prosecutors
Speaker 1: at the federal and state levels are taking a closer
Speaker 1: look at the Republican. His lies about his past have
Speaker 1: reportedly led to a federal probe into his finances, with
Speaker 1: questions now servicing about seven hundred thousand dollars used to
Speaker 1: fund his campaign. The prosecutor in Nassau County says she
Speaker 1: is looking into numerous fabrications and inconsistencies. Nearly two years
Speaker 1: after New York legal ees recreational marijuana, New York City's
Speaker 1: first dispensary is opening against doors to the public today.
Speaker 1: The Housing Works Cannabis Company in Lower Manhattan is a
Speaker 1: nonprofit that supports the homeless. Attorney Michael Bass says to
Speaker 1: be aware of certain restrictions under the new laws. It's
Speaker 1: gonna be very long lives. And my concern is people
Speaker 1: may lose patients in these lines and just go over
Speaker 1: to New Jersey to buy cannabis products and bring it
Speaker 1: back to New York. Well, if you do that, you've
Speaker 1: committed a federal cry trafficking the cannabis across state lives.
Speaker 1: So I urged folks, please don't do that. Attorney Bass
Speaker 1: also says there are limitations in terms of Grahams Announces
Speaker 1: to what you can purchase in New York. The fallout
Speaker 1: continues over the crisis at the southern border. After the
Speaker 1: Supreme Court led Title forty two stay in place for now.
Speaker 1: People in El Paso, Texas are protesting the extension of
Speaker 1: Title forty two. The Pandemic era policy allows the US
Speaker 1: to expel migrants back across the order without an asylum hearing.
Speaker 1: Bye Bye twenty twenty two. Ahead of the Big Ball
Speaker 1: drop in New Year's Eve, Good Written's Day was held
Speaker 1: in Times Square. Visitors could write down what they want
Speaker 1: to leave in the past. This man is a cancer
Speaker 1: survivor five nosed in January this year and went through
Speaker 1: chemo radiation surgery, and many others retired of COVID Global
Speaker 1: News twenty four hours a day on air end on
Speaker 1: Bloomberg Quick Take power by more than twenty seven under
Speaker 1: journalist and analyists more than a hundred twenty countries. Michael Barr,
Speaker 1: this is Bloomberg, John, Michael, thank you. It is now
Speaker 1: six ten uh Wolves free. Yeah. I signed out for
Speaker 1: the Bloomberg Sports Report being brought you by your Try
Speaker 1: State autie dealers. Let's get the ump date from John
Speaker 1: Stashire Morning John, Good morning John, and Nets and Hawks.
Speaker 1: We're in Atlanta Hops with without three injured starters, Nets
Speaker 1: riding along wind streak. They had a double digit lead,
Speaker 1: but then the Hopps rallied five the gate one four
Speaker 1: the rand uptime moving left stop for the time head
Speaker 1: away called for th D one O six four w
Speaker 1: f a n Atlanta Mr shot to win it at
Speaker 1: the buzzer and the Nets made it ten wins in
Speaker 1: a row. It's their longest win streak in sixteen years.
Speaker 1: One oh eight one oh seven Kyrie every twenty eight points.
Speaker 1: Fifteen of those came in the fourth quarter for Kevin
Speaker 1: Duran twenty six point sixteen rebounds, eight assists, Nets look
Speaker 1: to keep the street going. Saturday at Charlotte. Knicks, coming
Speaker 1: off that overtime lost in Dallas, played tonight in San Antonio,
Speaker 1: and since winning seven row, the Knicks have lost their
Speaker 1: last four. Devils beating the New Work by the NHL
Speaker 1: leading Bruins three to one. Rangers visit Tampa Bay tonight.
Speaker 1: The Islanders are home for Columbus St. John's hostin Xavier.
Speaker 1: Trailed by eleventh a half, the Red Storm lost eighty
Speaker 1: four to seventy nine and now eleven and three, one
Speaker 1: and two in the Big East. Fordham was twelve and one,
Speaker 1: but the Rams lost their Atlantic Tin opener at Rose
Speaker 1: Hilda Davidson fifty seven to forty three, to only fourteen
Speaker 1: points in the first half. There's college football in New
Speaker 1: York this afternoon. Syracuse and Minnesota. The pin Strike Ball
Speaker 1: at Yankee Stadium. Last night's Liberty Bowl in Memphis went
Speaker 1: triple overtime. Kansas rally from down, but Arkansas one fifty
Speaker 1: three National Semifinals. Saturday, Michigan TCU and Phoenix, Georgia takes
Speaker 1: on Ohio State in Atlanta. Winners played January nine and
Speaker 1: l A John Statar Bloomberg Sports. John all right, John,
Speaker 1: thanks very much. The Bloomberg Sports Report brought to you
Speaker 1: by Audie. Don't let somebody else drive off on the
Speaker 1: Audi model that you've always wanted. Visit your local Tri
Speaker 1: state Audie dealer, or get behind the wheel of yours today,
Speaker 1: or visit Audi Offers dot com for more information. Head
Speaker 1: of the cash open on Wall Street futures right now,
Speaker 1: point to uh A higher open, Dow futures up eight,
Speaker 1: SMP Evenate futures up twenty. This is Bloomberg Dame Break
Speaker 1: live from coast to coast, from New York to San Francisco,
Speaker 1: Boston to Washington, d C. Nationwide on Sirius X, then
Speaker 1: the Bloomberg Business app and Bloomberg dot Com. This is
Speaker 1: Bloomberg Daybreak and good morning. I'm John Tucker. Well, we
Speaker 1: had concerns about the spread of COVID nineteen from China,
Speaker 1: weakening some of the risk afford site. In one of
Speaker 1: the final trading days of the year, yesterday's session, SMP
Speaker 1: five hundred lost one point two percent. Right now, let's
Speaker 1: get you set up for the trading day Ahead. We
Speaker 1: are joined by uh mak wod New Ronnie, the CEO
Speaker 1: and co founder at quant Insight. UM. With the COVID
Speaker 1: risk in the markets, you have a sense of well,
Speaker 1: here we go again with with COVID HI. Good morning
Speaker 1: from London, John. As far as COVID in in China
Speaker 1: is concerned, all eyes are on that. But it is
Speaker 1: really a bit of a wild card um. You know,
Speaker 1: on the one hand you have opening up and some
Speaker 1: sort of resumption of economic activity. On the other hand,
Speaker 1: it's really hard to get a handle on UM you know,
Speaker 1: the impact that it's going to have on on economic activity.
Speaker 1: So a real wild card and that really adds to
Speaker 1: the uncertainty going into two thousand and twenty three, and
Speaker 1: there's a lot of it. What can you pick up
Speaker 1: for the ashes of if anything, with the risk assets
Speaker 1: and beyond Yeah, absolutely. I mean what we do at
Speaker 1: quantu inside is we like looking at the data, and
Speaker 1: we gather millions of data points today and have this
Speaker 1: big machine that basically processes it all. Looks at all
Speaker 1: the daily little variations we see in information on GDP
Speaker 1: and inflation and what the Fed's expected to do and
Speaker 1: and sort of relate that asset prices to help us
Speaker 1: understand what's really going on. And the two thousand two
Speaker 1: story was very clear, and that was really that the
Speaker 1: only game in town was the FED and where they
Speaker 1: were going to stop. But what we started to see
Speaker 1: in the last few weeks is that all the indicators
Speaker 1: are showing that the importance of the FED is diminishing
Speaker 1: and the importance of the real economy and the credit
Speaker 1: cycle is increasing. Now we sort of have this weird
Speaker 1: six month period where although the FED has been tightening
Speaker 1: a lot and very quickly, US real GDP growth has
Speaker 1: actually been positive. So we've we've got positive GDP growth
Speaker 1: into three, and it looks like Q four will be positive. Uh.
Speaker 1: And I noted with interest that Goldman's chief economists yesterday
Speaker 1: was on LinkedIn talking about their forecast for three for
Speaker 1: US real GDP growth and he had that as positive
Speaker 1: one percent. In the other corner, you have, of course,
Speaker 1: everyone talking about the inverted yield curve and how that's
Speaker 1: a very reliable predictor of recession. Uh. And so what
Speaker 1: it boils down to three is how's the real economy
Speaker 1: going to do? And how is the credit cycle going
Speaker 1: to do? And is all this tightening we've seen from
Speaker 1: the Fed fine lead going to bite when it comes
Speaker 1: to real GDP growth. Are we going to see unemployment rise?
Speaker 1: That's the big question, and where we are right now
Speaker 1: is very unclear. I mean, if you look at US
Speaker 1: corporate bankruptcies in two thousand and twenty two, they are
Speaker 1: at a ten year low. Um, you know, the consumer
Speaker 1: has done way better than expected. Whether that's because they've
Speaker 1: been spending on credit cards is an open question. Corporate
Speaker 1: credit spreads, which give you an idea of sort of
Speaker 1: the market expected default rate for corporate and how much
Speaker 1: pain they see next year, is not really flashing any
Speaker 1: red signs as yet. And so the net result is
Speaker 1: you've got the equity market stuff between this sort of
Speaker 1: thirty six hundred and four thousand, four thousand, one hundred
Speaker 1: sort of zone while we see what the economy does.
Speaker 1: And so what we're doing at QI is watching the
Speaker 1: real economy data very very closely as enter where did
Speaker 1: the earnings expectations fit into all of this? Well, you know,
Speaker 1: the current earnings expectations are moderates, kind of small positive
Speaker 1: and you have a bit of a disagreement out there
Speaker 1: because a lot of the equity market bears are expecting
Speaker 1: an earnings recession in three but that is based on
Speaker 1: the view that the US economy is going to go
Speaker 1: into recession. So again, you know, if we do get
Speaker 1: this soft landing, and some of the pundits are right
Speaker 1: that you get one percent positive real GDP growth in
Speaker 1: the Fed engineers this kind of amazing soft landing where
Speaker 1: they've managed to slow the economy down and inflation comes
Speaker 1: down and you're still growing it around one percent. Again,
Speaker 1: that speaks to more of a sideways type of equity
Speaker 1: pocket and no sort of huge type of back market
Speaker 1: that we saw this year. All right, we'll leave it there.
Speaker 1: Mamo the Nearani, the CEO and co founder of Quanda Insight,
Speaker 1: joining us from London this morning, appreciate your time. Ahead
Speaker 1: of the cash open on Wall Street this morning. We
Speaker 1: have futures for now in the green, the down futures
Speaker 1: there's seventy points higher, that's a rise of about two
Speaker 1: tenths of a percent. S and P evening futures of
Speaker 1: seventeen that's up four tenths of a percent right now,
Speaker 1: and Tech Cavy NAZAC futures seventy nine points higher. That
Speaker 1: is a three quarters of eight percent. And look at
Speaker 1: Nimex crewed right now. This is West Texas Intermediate, down
Speaker 1: one and a half percent off the session laws right now,
Speaker 1: down a dollar three a barrel at seventy seven seventy eight.
Speaker 1: You're listening to Bloomberg Daybreak