WEBVTT - Bloomberg Daybreak: December 7, 2022 - Hour 2 (Radio) 0:00:02.000 --> 0:00:05.359 Live from the Bloomberg Interacted Berger Studios. This is Bloomberg 0:00:05.440 --> 0:00:09.119 day Break for Wednesday, December seven two. Coming up this hour, 0:00:09.440 --> 0:00:15.840 the people have spoken Democrat Rockfield Warnock. When's the Senate 0:00:15.920 --> 0:00:19.160 runoff race in Georgia? Two of Donald Trump's companies are 0:00:19.200 --> 0:00:23.040 convicted in a criminal tax fraud trial, and Morgan Stanley 0:00:23.160 --> 0:00:25.959 is the latest company to slash jobs. New York Mayor 0:00:26.120 --> 0:00:29.920 Eric Adams welcome's new top appointees in his administration, plus 0:00:30.120 --> 0:00:33.479 an iconic New York City comedy club will close its doors. 0:00:33.760 --> 0:00:36.920 I'm Michael bar More ahead, I'm John Stashower in sports 0:00:36.920 --> 0:00:39.320 to shut out, win for the Devil's, the Islanders lost, 0:00:39.440 --> 0:00:44.760 met and Yankee free agent pictures are moving on. That's 0:00:44.760 --> 0:00:48.720 all's trendy head on Bloomberg day Break on Bloomberg eleven three, 0:00:48.720 --> 0:00:53.159 on New York, Bloomberg one, Washington, d C, Bloomberg one 0:00:53.200 --> 0:00:57.680 oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 0:00:57.840 --> 0:01:00.920 XM one nineteen and around the world Old on Bloomberg 0:01:01.000 --> 0:01:08.160 Radio dot Com and via the Bloomberg Business Ship. Good 0:01:08.160 --> 0:01:11.280 Wednesday morning, I'm Any Morris and I'm Karen Moscow and 0:01:11.400 --> 0:01:14.720 US dot Index futures are lower this morning at six 0:01:14.720 --> 0:01:16.679 oh one on Wall Street. And we check the markets 0:01:16.720 --> 0:01:19.360 all day here at Bloomberg Radio. Right now, S and 0:01:19.400 --> 0:01:22.080 P futures down eight points or two tenths of a percent. 0:01:22.160 --> 0:01:24.240 Down Future is down thirty eight or one tenth of 0:01:24.240 --> 0:01:28.000 a percent, and NASDACK futures down thirty four points or 0:01:28.040 --> 0:01:30.760 three tenths of a percent. The decks in Germany is 0:01:30.800 --> 0:01:32.559 down a third of a percent right now, And attend 0:01:32.560 --> 0:01:35.160 your treasury down one thirty second you have three point 0:01:35.200 --> 0:01:38.480 five three percent. Amy Karen will have more on the 0:01:38.480 --> 0:01:41.120 markets in just a minute. But first, Democrats have one 0:01:41.200 --> 0:01:44.520 control of the Senate after a victory in Georgia's runoff 0:01:44.520 --> 0:01:49.200 election in Combent, Democrat Raphael Warnock defeated Republican challenger Herschel 0:01:49.280 --> 0:01:53.080 Walker fifty one percent to forty eight point six percent. 0:01:53.440 --> 0:02:00.120 Why do you voted, famire? Not that every single day. 0:02:01.720 --> 0:02:07.240 I am going to keep working for you. Walker has 0:02:07.280 --> 0:02:10.800 conceded to war Knock, encouraging his supporters to stay engaged 0:02:10.880 --> 0:02:13.760 in politics. I'm not gonna make any excuses now because 0:02:13.800 --> 0:02:16.400 we put a one hick of a fight and I do. 0:02:16.560 --> 0:02:20.280 That's what That's what we gotta do because this is 0:02:20.360 --> 0:02:23.840 much bigger. This is much bigger than herschel Walker to 0:02:23.919 --> 0:02:26.399 win for war Knock means Democrats have a fifty one 0:02:26.440 --> 0:02:30.920 to forty nine Senate majority. There will be divided government. However, Republicans, 0:02:30.919 --> 0:02:35.640 having narrowly gained House control, belamy with war Knock's decisive victory. 0:02:35.800 --> 0:02:39.680 Georgia Secretary of State Brad Raevensberger defended the integrity of 0:02:39.720 --> 0:02:43.560 this race, calling it honest and fair. You remember, Raethensberger 0:02:43.680 --> 0:02:47.520 was pressured by former President Trump after the election. We 0:02:47.560 --> 0:02:50.160 want everyone to know at your vote counts, it's gonna 0:02:50.200 --> 0:02:52.720 be safe, it's gonna be secure, it's gonna be accurate, 0:02:52.840 --> 0:02:55.360 and we're gonna actually audit this race. Whatever you wist 0:02:56.040 --> 0:02:58.360 of this race, so we can verify the voters. Here's 0:02:58.400 --> 0:03:00.800 what the results were on the machine. Here's what they 0:03:00.840 --> 0:03:03.680 are afterward. Did the hand help audit? Secretary of st 0:03:03.720 --> 0:03:07.040 Raethensberger spoke with our Washington corresponded Joe Matthew, who's on 0:03:07.080 --> 0:03:10.120 the ground in Georgia, catches show sound on weeknights at 0:03:10.200 --> 0:03:13.600 five pm Eastern on Bloomberg Radio. Karen, it was not 0:03:13.680 --> 0:03:15.919 a good day for Donald Trump. He was a prominent 0:03:15.960 --> 0:03:18.800 backer rehearsal Walker and at the same time there's news 0:03:19.040 --> 0:03:22.000 the former president suffered another defeat in court. We get 0:03:22.040 --> 0:03:25.160 the story from Bloomberg's at Baxter. Donald Trump's company has 0:03:25.200 --> 0:03:28.280 been found guilty of engaging in tax fraud for more 0:03:28.360 --> 0:03:31.200 than a decade. This is the first time a Trump 0:03:31.240 --> 0:03:35.960 business has been convicted of criminal conduct. Executives, including Allen Wiselberg, 0:03:36.000 --> 0:03:39.680 convicted of evading taxes on company paid perks, including free 0:03:39.720 --> 0:03:44.400 apartments and luxury cars. The conviction may make it harder 0:03:44.520 --> 0:03:47.880 for the Trump companies to do business. Trump himself was 0:03:47.920 --> 0:03:51.680 not charged in San Francisco. I'm at Baxter Bloomberg Daybreak, 0:03:51.880 --> 0:03:54.240 Great and thanks. Will have more reaction on the political 0:03:54.280 --> 0:03:56.600 news coming up in a few minutes. But first let's 0:03:56.640 --> 0:03:58.880 turn to Wall Street, where the view on the economy 0:03:59.040 --> 0:04:02.560 is yetting gloomy. Now Morgan Stanley is cutting jobs. To 0:04:02.640 --> 0:04:05.960 get the details live at Bloombergy Steve Rappaport, Good morning, Steve, 0:04:06.040 --> 0:04:08.880 Good morning, Karen, and Amy. Morgan Stanley will reduce about 0:04:08.880 --> 0:04:11.720 two percent of its global workforce as the bank braces 0:04:11.800 --> 0:04:15.480 for a possible recession. Sources tell Bloomberg roughly six hundred 0:04:15.560 --> 0:04:18.479 jobs are on the chopping block. CEO James Gorman hinted 0:04:18.520 --> 0:04:21.480 layoffs were coming when the bank reported earnings in October, 0:04:21.600 --> 0:04:25.200 saying they learned some things during COVID about operating more efficiently, 0:04:25.440 --> 0:04:27.680 and that's something the management team is working on for 0:04:27.720 --> 0:04:30.600 the rest of the year. Morgan's move comes as Goldman 0:04:30.640 --> 0:04:33.279 Sacks and Bank of America Warren Dell slow hiring as well. 0:04:33.480 --> 0:04:37.039 Live in New York, I'm Steve Rappaport Bloomberg Daybreak. All right, 0:04:37.120 --> 0:04:40.240 thanks Steven. Goldman Sachs is out with a downbeat view 0:04:40.279 --> 0:04:43.360 on the economy. We spoke with CEO David Solomon at 0:04:43.360 --> 0:04:47.320 Goldman's Financial Services conference. He says smaller bonuses and job 0:04:47.360 --> 0:04:50.680 cuts shouldn't come as a surprise. We always look at 0:04:50.720 --> 0:04:53.080 the environment, and we always sized the firm to the environment. 0:04:53.080 --> 0:04:56.240 If the environment gets tougher, we will obviously make decisions 0:04:56.240 --> 0:04:58.720 to size the footpront of the firm appropriately. That can 0:04:58.760 --> 0:05:01.760 come from slowing down firing, which we've already done considerably 0:05:01.800 --> 0:05:03.600 in the second half of the year um and that 0:05:03.760 --> 0:05:07.200 might also come from pruning in certain areas. Goldman Sachs 0:05:07.200 --> 0:05:11.240 CEO David Solomon spoke with Bloomberg's Channelly Basset, another Well 0:05:11.279 --> 0:05:14.120 Street CEO, is also weighing in on the economy amy 0:05:14.160 --> 0:05:17.000 and its impact on his firm. Bank of America's Brian 0:05:17.040 --> 0:05:20.600 moynahan says there are signs of consumer weakness. Was spending 0:05:20.800 --> 0:05:23.520 starting to slow. The evidence shows it. Yes, the economy 0:05:23.720 --> 0:05:26.520 is being slowed by the higher indust rates, by the 0:05:26.560 --> 0:05:30.039 fact that the inflation is eating up more of a 0:05:30.040 --> 0:05:32.000 person savings. They need to get down under control. That 0:05:32.040 --> 0:05:33.680 means higher interest rates. On the other hand, you've seen 0:05:33.680 --> 0:05:35.520 them slow down, which ought to put less price pressure. 0:05:35.720 --> 0:05:37.400 That means they could slow down. So that's going to 0:05:37.480 --> 0:05:39.000 be a debate. I think we need a few more 0:05:39.000 --> 0:05:40.880 months to see whether it's just a trend or not. 0:05:41.400 --> 0:05:44.520 And Bank of America's Brian moynahan says consumers spending at 0:05:44.520 --> 0:05:47.120 the bank rose five percent in November, and that's a 0:05:47.200 --> 0:05:51.599 lower rate than prior periods. In Asia, China continues to 0:05:51.680 --> 0:05:55.680 relax COVID restrictions. Today brought another round of announcements from 0:05:55.680 --> 0:05:59.240 the government. Bloomberg's John Lou reports from Beijing. New measures 0:05:59.240 --> 0:06:01.760 were announced today that allow people infected with COVID to 0:06:01.880 --> 0:06:05.560 quarantined at home. As a nationwide policy authorities are also 0:06:05.640 --> 0:06:09.039 trying to rein it unnecessary PCR testing by scrapping the 0:06:09.120 --> 0:06:12.440 need to show a negative test result for most public venues. 0:06:12.480 --> 0:06:14.440 Those moves are the latest sign that the government is 0:06:14.440 --> 0:06:17.200 trying to ease its zero tolerance COVID strategy and that 0:06:17.360 --> 0:06:20.960 growing public discontent. The actions also suggest that China's most 0:06:20.960 --> 0:06:24.000 senior leaders are willing to tolerate higher case numbers to 0:06:24.080 --> 0:06:27.440 avoid more social and economic term win in Beijing. On 0:06:27.560 --> 0:06:30.080 John lou bloom Break, Day Break, Great John, Thanks well. 0:06:30.080 --> 0:06:32.440 Back here in the US, we have an ominous forecast 0:06:32.520 --> 0:06:34.920 from an iPhone supplier in Asia. I'm you're out of 0:06:35.120 --> 0:06:39.520 manufacturing expects Apple to further reduced iPhone fourteen production plans. 0:06:39.839 --> 0:06:42.760 It cites weak demand. The Japanese company is a lynch 0:06:42.839 --> 0:06:46.919 pin of the smartphone industry, providing components to Apple, Samsung, 0:06:47.040 --> 0:06:51.120 and many others. Futures this morning are a little bit lower. 0:06:51.279 --> 0:06:54.160 SMP futures down six points, down about two tents of 0:06:54.279 --> 0:06:57.000 upper cent. Straight ahead your latest local headlines plus the 0:06:57.080 --> 0:07:03.880 check of sports. This is Bloomberg. Thank you. Karen. Five 0:07:03.920 --> 0:07:06.760 oh seven on Wall Street, fifty seven degrees now in 0:07:06.839 --> 0:07:10.080 New York with scattered showers for the day. Mild temperatures too. 0:07:10.120 --> 0:07:12.680 We're going up to sixty today. Let's bring in Michael 0:07:12.720 --> 0:07:14.400 Barr with more on what else is going on in 0:07:14.440 --> 0:07:17.000 New York and around the world. Good morning, Michael, Good 0:07:17.040 --> 0:07:19.960 morning Amy. New York Mayor Eric Adams will fill two 0:07:20.080 --> 0:07:23.040 top appointed posts at City Hall with two women from 0:07:23.040 --> 0:07:27.400 inside his administration. Camille Varlac, senior advisor to the Mayor, 0:07:27.480 --> 0:07:31.200 will become Chief of Staff, replace from retiring Frank Corone. 0:07:31.600 --> 0:07:35.239 Gina right now Jeoputy Mayor of Strategic Initiatives will become 0:07:35.320 --> 0:07:39.960 first Deputy Mayor, replacing retiring Lorraine Grillo. Mayor Adams says 0:07:40.080 --> 0:07:44.160 they will have big shoes to fill. Shea Camille all 0:07:44.200 --> 0:07:50.280 continue to tradition a strong women in this administration, especially 0:07:50.960 --> 0:07:56.320 strong women of color. The appointments will be effective January. 0:07:56.840 --> 0:08:00.760 Former Broome County, New York District Attorney Steve Even Cornwell 0:08:00.840 --> 0:08:04.480 has pleaded guilty to grand larceny. Cornwell admitted to stealing 0:08:04.480 --> 0:08:08.400 felony case records of his prior criminal conviction. Current d 0:08:08.560 --> 0:08:13.160 A Michael Cornchack says that Cornwell stole case files and 0:08:13.240 --> 0:08:17.160 county records that documented his conviction, including for d U 0:08:17.320 --> 0:08:20.360 I an assault on an officer. He also went into 0:08:20.360 --> 0:08:24.560 the computer files of the district attorney and altered his 0:08:24.680 --> 0:08:28.040 name and deleted his day of birth from that prior 0:08:28.080 --> 0:08:32.120 criminal conviction. D A. Corn Chack says that Cornwell was 0:08:32.160 --> 0:08:35.200 sentenced to a three year conditional discharge and find five 0:08:35.240 --> 0:08:38.520 thousand dollars. Today, America marks any one years after the 0:08:38.559 --> 0:08:42.239 Pearl Harbor attack. The number of World War Two survivors 0:08:42.280 --> 0:08:45.240 from that day are dwindling. One one year old Lou 0:08:45.360 --> 0:08:49.120 Counter in Grass Valley, California, regrets, due to his age, 0:08:49.160 --> 0:08:50.800 that he will not be able to attend today his 0:08:50.880 --> 0:08:53.600 remembrance events. He was a sailor on board the ill 0:08:53.679 --> 0:08:57.640 fated USS Arizona. I'd love to be there because there's 0:08:57.640 --> 0:09:02.319 only two of us still living there. More than two 0:09:02.440 --> 0:09:06.439 hundred Americans were killed in the surprise Japanese attack, and 0:09:06.400 --> 0:09:10.560 an iconic New York City comedy club is closing up shop, 0:09:10.960 --> 0:09:13.960 Caroline's on Broadway to close its doors after forty years. 0:09:13.960 --> 0:09:17.280 The final day will be on December thirty one. Global 0:09:17.320 --> 0:09:19.480 News twenty four hours a day on air and on 0:09:19.520 --> 0:09:22.400 Bloomberg quick Take, powered by more than twenty seven hundred 0:09:22.440 --> 0:09:25.480 journalists and analysts, and more than one hundred twenty countries. 0:09:25.720 --> 0:09:29.760 Michael Barr and this is Bloomberg Amy. All right, thank you, Michael. 0:09:32.600 --> 0:09:34.520 It's so nine on the Wall Street. Time now for 0:09:34.559 --> 0:09:36.880 the sports report, brought to you by Try stand OUTI. 0:09:37.080 --> 0:09:39.920 Here's John's Tash hour. Okay, Jacob de Graham was not 0:09:40.000 --> 0:09:42.880 the Mets only free agent pitcher Taiwan Walker, All Star 0:09:42.960 --> 0:09:45.800 in one then had a solid season, going twelve and 0:09:45.880 --> 0:09:47.560 five three and a half the r A. Walker not 0:09:47.640 --> 0:09:51.080 only leaving the Mets, he's joining the Phillies, who continue 0:09:51.120 --> 0:09:54.079 to spend, having already added trade turner Javison Tayone leaving 0:09:54.080 --> 0:09:56.480 the Yankees heading to the Cubs. Dione came to New 0:09:56.520 --> 0:09:59.160 York for the history of injuries and illness, but he 0:09:59.240 --> 0:10:02.280 was dependable this fast season, making thirty two starts, led 0:10:02.320 --> 0:10:05.160 the team and wins with fourteen. The Cubs also signed 0:10:05.200 --> 0:10:07.600 Cody Bellinger the two thousand nineteen n l m v 0:10:07.679 --> 0:10:10.520 P with the Dodgers. Yanks have signed free agent reliever 0:10:10.679 --> 0:10:13.640 Tommy Keenley. He was with them before. As for Aaron Judge, 0:10:13.800 --> 0:10:16.960 thank you, gentle. Manager Brian Cashman was on the Yes Network. 0:10:17.280 --> 0:10:21.959 Certainly hopeful, but we're not driving this bus obviously, Mr Judges, 0:10:22.080 --> 0:10:23.960 and um, you know, he put himself in a great 0:10:23.960 --> 0:10:26.480 position clearly with a historic season, and he's had an 0:10:26.480 --> 0:10:28.920 amazing career thus far. And you know one that if 0:10:28.920 --> 0:10:31.040 he continues to take him all the way to Cooper's Town. 0:10:31.040 --> 0:10:33.839 But we want every stop along the way between now 0:10:33.880 --> 0:10:36.400 and and hopefully that final destination to be here in 0:10:36.440 --> 0:10:38.360 the Brocks for us Kashman and Mets. He has to 0:10:38.400 --> 0:10:41.280 wait for, as he says the judge, Domino to fall 0:10:41.559 --> 0:10:43.440 before he knows what to do next. On the ice, 0:10:43.480 --> 0:10:46.600 Devils three Nothings shut out of Chicago defenseman Dougee Hamilton's 0:10:46.600 --> 0:10:49.560 in on all three goals. Islanders lost at home to St. 0:10:49.559 --> 0:10:52.440 Louis seven to four. Locals matt College hoops that Rose 0:10:52.520 --> 0:10:55.199 Hill Fordham beat Wagner and the Lambs are nine and one. 0:10:55.280 --> 0:10:58.640 Double hetter at the Garden, Duke beat Iowa after Illinois 0:10:58.679 --> 0:11:01.680 beat second rank Texas in overtime. Two days off at 0:11:01.679 --> 0:11:04.920 the World Cup after Portugal routed Switzerland six to one 0:11:04.960 --> 0:11:09.520 and Morocco upset Spain on penalty kicks. Quarterfinals Friday and Saturday. 0:11:09.559 --> 0:11:12.800 In guitar forty Niners, quarterback Jimmy Garoppolo may not miss 0:11:12.800 --> 0:11:14.880 the rest of the season, does not need surgery on 0:11:14.960 --> 0:11:17.120 his injured for if he does return, with not being 0:11:17.160 --> 0:11:20.320 until the playoffs. Another TB. Baker Mayfield released by Carolina 0:11:20.400 --> 0:11:24.320 claimed on waivers. Buddy L. A. Vans, John Stashwer Bloomberg Sportsman. 0:11:25.040 --> 0:11:27.720 All right, thank you, John. The Bloomberg Sports Report was 0:11:27.760 --> 0:11:30.559 brought to you by Audie. Don't let someone else drive 0:11:30.559 --> 0:11:33.720 off in the Audi model you've always wanted. Visit your 0:11:33.760 --> 0:11:36.199 local try state Audie dealer to get behind the wheel 0:11:36.240 --> 0:11:39.440 of yours today, or visit Autie Offers dot com for 0:11:39.600 --> 0:11:43.640 more information. Futures are lower s and P down seven 0:11:43.640 --> 0:11:47.600 point STAF futures down twenty three points, NASDAC features down 0:11:47.600 --> 0:11:51.040 thirty two points. Ten year treasury unchanged at three point 0:11:51.040 --> 0:11:53.839 five three percent. They yield a two year yield at 0:11:54.000 --> 0:11:58.760 four point three four percent, and Nimex crude now trading 0:11:58.760 --> 0:12:02.440 at seventy three dollars a bar. A good Wednesday morning 0:12:02.480 --> 0:12:05.120 at six twelve on Wall Strength. This is Bloomberg Daybreak. 0:12:05.120 --> 0:12:07.839 Democrats have one outright control of the Senate after a 0:12:07.960 --> 0:12:10.679 victory in the runoff election in Georgia last night. We're 0:12:10.720 --> 0:12:13.520 joined now by Wendy Schiller, director of the Talfman Center 0:12:13.559 --> 0:12:17.560 for American Politics and Policy at Brown University. Thank you 0:12:17.600 --> 0:12:19.880 so much, Professor Schiller for joining us this morning. We 0:12:20.040 --> 0:12:22.960 got those results much sooner than expected. A lot of 0:12:23.000 --> 0:12:26.240 folks we're saying it could take days before we really 0:12:26.320 --> 0:12:29.640 knew who won this runoff, but no, it only took hours. 0:12:29.679 --> 0:12:33.640 What's that tell you, well, Gorning Amy, I mean, what's 0:12:33.720 --> 0:12:36.160 interesting is that there's sort of a big debate about 0:12:36.160 --> 0:12:39.200 early voting, bail and voting and then day of voting. 0:12:39.760 --> 0:12:42.760 Republicans tend to vote in bigger numbers on day of voting, 0:12:42.800 --> 0:12:45.760 although in some states, uh in the mid terms, they 0:12:45.760 --> 0:12:48.240 get out in person and the early voting stages as well. 0:12:48.400 --> 0:12:52.000 But Democrats wrapped up really big numbers in early voting 0:12:52.000 --> 0:12:54.680 in what in multiple forms, and that means that Republicans 0:12:54.720 --> 0:12:57.280 have to play catch up on election day and get 0:12:57.280 --> 0:12:59.600 all these votes out the door and make sure all 0:12:59.640 --> 0:13:01.240 these people who said they were going to vote get 0:13:01.240 --> 0:13:03.559 out the door. And without a governor's race at the 0:13:03.600 --> 0:13:05.760 top of the ticket and a relatively popular governor in 0:13:05.840 --> 0:13:08.280 Brian Kemp, you know, I think that heart visual Walker, 0:13:08.320 --> 0:13:12.439 and particularly in some of these very red very rural 0:13:12.440 --> 0:13:15.720 Republican counties. He just missed the mark. He lost by 0:13:15.720 --> 0:13:19.480 a copper or percentage points um in terms of his turnout, 0:13:19.760 --> 0:13:21.760 and he didn't get enough of a victory in some 0:13:21.800 --> 0:13:24.719 of those Republican areas to counter or an ex tremendous 0:13:25.160 --> 0:13:29.880 advantage in very highly populous Democratic counties. Still a divided 0:13:29.920 --> 0:13:32.600 government though Republicans have the majority in the House. It's slim, 0:13:32.640 --> 0:13:34.920 but they have it. Democrats also have a majority in 0:13:34.920 --> 0:13:38.560 the Senate, also very slim. So do you expect more gridlock? 0:13:38.679 --> 0:13:42.360 Can they find a way to cooperate? Well, there are 0:13:42.360 --> 0:13:45.400 two big, huge, woming questions. I think what immediate is 0:13:45.400 --> 0:13:48.119 whether the government shuts down, which won't happen. The Democrats, 0:13:48.400 --> 0:13:50.319 you know, are running things in the lame duck session. 0:13:50.520 --> 0:13:52.480 They still have control of the chamber. They'll find a 0:13:52.480 --> 0:13:55.440 way to pass a funding bill. How long that funding 0:13:55.440 --> 0:13:57.640 bill goes for that's the question mark. Then there's the 0:13:57.679 --> 0:14:00.920 debt ceiling and what we don't even though sort of 0:14:00.960 --> 0:14:03.240 I think people who are the Democrats side are watching 0:14:03.240 --> 0:14:06.560 with glee as as McCarthy has challenged with the speakership 0:14:06.600 --> 0:14:09.199 and there's such a majority for the Republicans, they seem 0:14:09.200 --> 0:14:12.079 a little bit in disarray. That's a problem for getting 0:14:12.080 --> 0:14:14.880 the dead ceiling past. I mean, you need functional government. 0:14:14.920 --> 0:14:16.800 You can have polarization, but you need to get some 0:14:16.840 --> 0:14:19.480 of these things actually and you know, passed. So I 0:14:19.560 --> 0:14:21.880 think that's the looming question is will to be enough 0:14:21.960 --> 0:14:25.400 functionality on the Republican side to pass a debt limit 0:14:25.480 --> 0:14:28.200 extension and so that that's a big question mark, and 0:14:28.240 --> 0:14:30.960 whether the Democrats try to do it now because they're worried. 0:14:31.240 --> 0:14:33.480 That may be good for policy, but it will take 0:14:33.520 --> 0:14:36.560 the pressure off the Republicans will stay some control in 0:14:36.600 --> 0:14:39.840 the House after January three. Now, let me ask you 0:14:39.880 --> 0:14:42.040 about something in the Senate, because we have seen in 0:14:42.080 --> 0:14:46.000 the past Senator's mansion and Cinema not really telling the 0:14:46.040 --> 0:14:48.880 Democratic party line all of the time, sometime throwing up 0:14:49.120 --> 0:14:52.280 those speed bumps and keeping some pieces of legislation from 0:14:52.320 --> 0:14:54.360 passing as long as they were able to get their 0:14:54.440 --> 0:14:57.960 their mandates in So my question for you is does 0:14:58.160 --> 0:15:05.320 this little bit breathing room effectively buffer that impact that effect? Um, 0:15:05.360 --> 0:15:07.360 I don't think so. I mean, I think fifty one. 0:15:07.480 --> 0:15:09.960 You know, anything can happen any time in terms of 0:15:09.960 --> 0:15:12.520 the Democrat Party, in terms of the health of Democratic senators. 0:15:12.560 --> 0:15:16.240 We've seen this most recently. Um uh. You know where 0:15:16.280 --> 0:15:18.960 people become ill and then they they're not there for votes, 0:15:19.000 --> 0:15:21.480 and then you're stuck Tamla Harris. You get a little 0:15:21.480 --> 0:15:24.520 breathing room. But I think also politically, you can't afford 0:15:24.600 --> 0:15:27.720 to alien Arizona for the Democrat Party. Uh and West 0:15:27.800 --> 0:15:30.760 Virginia that doesn't vote Democrat in that presidential race. But 0:15:30.840 --> 0:15:34.320 Manchion is still a kind of barometer for the Democrat Party. Uh. 0:15:34.360 --> 0:15:36.560 And it's it's managed to push the party a little 0:15:36.560 --> 0:15:39.600 bit back to the center, which we've seen in two 0:15:39.880 --> 0:15:43.320 probably protected the Democrats that's on the Senate side in particular, 0:15:43.680 --> 0:15:45.800 more than they would have been if they didn't have 0:15:45.840 --> 0:15:48.840 these particular senators pushing them back to the middle. I 0:15:48.920 --> 0:15:53.480 also wonder if this somehow improves Democrats chances in hear 0:15:53.520 --> 0:15:57.280 me out. It just seems as though it may be 0:15:57.360 --> 0:16:00.640 not a blue wave, not a red wave, but pendulum 0:16:00.720 --> 0:16:04.400 swinging away from that Trump effect that we've been seeing 0:16:04.440 --> 0:16:08.080 for the past few years. Amy I said, all depends. 0:16:08.160 --> 0:16:10.280 I've been trying to find do my homework on the 0:16:10.280 --> 0:16:13.320 Republican Nominating Convention rules, because you know, the Democrats are 0:16:13.320 --> 0:16:15.280 not talking about how they're going to structure their primaries. 0:16:15.480 --> 0:16:17.680 You know, are they going to keep proportional representation which 0:16:17.760 --> 0:16:20.240 kept Trump alive In the first part of the of 0:16:20.320 --> 0:16:23.360 the Republican nominating process, they split it up between win 0:16:23.440 --> 0:16:25.960 or take all proportional representation. These things are gonna matter. 0:16:26.040 --> 0:16:28.720 People don't pay much attention, but it certainly matters. You know, 0:16:29.000 --> 0:16:31.760 a more fringe E candidate can stay alive under that circumstance, 0:16:31.880 --> 0:16:33.960 winner take all, they can't really stay alive is easily. 0:16:34.080 --> 0:16:36.320 Are you gonna look for Glenn Young Kin, Ron de Santas, 0:16:36.320 --> 0:16:39.280 Brian Kemp, for example, to lead the party going forward? 0:16:39.600 --> 0:16:41.440 Or or will the wing of the party that loves 0:16:41.440 --> 0:16:44.760 Trump still control that? And I think clearly in two 0:16:44.800 --> 0:16:47.760 Trump was an electoral liability. So the Republicans have to 0:16:47.800 --> 0:16:50.720 decide that. But Democrats talk other pressures. Voting Rights Act, 0:16:50.760 --> 0:16:52.960 for example, John Lewis Voting Rights Act couldn't get it 0:16:52.960 --> 0:16:55.360 done because of the filibuster. Will they get rid of 0:16:55.400 --> 0:16:58.400 the filibuster legislated filibuster meaning will they lower the threshold 0:16:58.480 --> 0:17:01.880 the fifty one votes to get something past? That's legislation 0:17:01.920 --> 0:17:05.040 they've already done up for executive nominations, judicial nominations. Will 0:17:05.080 --> 0:17:07.520 they do it for legislation, but chicularly since we saw 0:17:07.760 --> 0:17:10.960 some states adopt more voter suppression laws. Although Tronaut was 0:17:11.040 --> 0:17:13.159 very high in Georgia. Warnock made a point of that 0:17:13.240 --> 0:17:16.760 in his acceptance each very interesting. Don't ignore voter suppression 0:17:16.800 --> 0:17:19.200 just because we all turned out to vote and overcame 0:17:19.240 --> 0:17:22.000 those obstacles. That's gonna be a big pressure points, particularly 0:17:22.040 --> 0:17:24.639 going into twenty four for the Democrats. And how are 0:17:24.640 --> 0:17:26.240 they going to handle that now that they have a 0:17:26.240 --> 0:17:28.280 little more breathing room what you say, and they're more 0:17:28.400 --> 0:17:32.560 key race um Warnock won anyone in the end, pretty big, 0:17:34.000 --> 0:17:36.560 all right. Wendy Schiller, director of the Talibman Center for 0:17:36.640 --> 0:17:39.520 American Politics and Policy at Brown University. We're gonna have 0:17:39.520 --> 0:17:41.840 more on this with Wendy Schiller later at this hour. 0:17:42.280 --> 0:17:44.960 As MP futures down nine, Death Futures down thirty eight, 0:17:45.000 --> 0:17:48.000 Nasdaq features down at thirty nine. Bloomberg Day Break is 0:17:48.000 --> 0:17:50.600 brought to you by the Jewish Communal Fund. For fifty years, 0:17:50.600 --> 0:17:52.720 philanthropists at all levels have turned to j c F 0:17:52.840 --> 0:17:55.720 donor advised funds to streamline their charitable giving. Is that 0:17:55.840 --> 0:18:03.240 j c F n y dot org, Markets headlines and 0:18:03.400 --> 0:18:06.760 breaking news twenty four hours a day at Bloomberg dot com, 0:18:06.760 --> 0:18:10.320 a Bloomberg Business outland at Bloomberg Quick Take this She's 0:18:10.320 --> 0:18:19.080 a Bloomberg Business flash and I'm Karen Moscow. And this 0:18:19.160 --> 0:18:21.480 update brought to you by the Jewish Communal Fund. For 0:18:21.560 --> 0:18:25.440 fifty years, JCFS donor advice funds have been helping families 0:18:25.440 --> 0:18:28.520 create charitable legacies. Start now and open at j c 0:18:28.720 --> 0:18:31.680 F fund before year end. Visit j c F n 0:18:31.880 --> 0:18:35.440 y dot org. U stock index futures are dropping this 0:18:35.520 --> 0:18:38.960 morning as week Chinese trade data adds to concerns about 0:18:38.960 --> 0:18:41.000 the health of the global economy. We check the markets 0:18:41.000 --> 0:18:43.639 all day here on Bloomberg radios and p future is 0:18:43.720 --> 0:18:46.200 down about nine points or two tens of upper sent. 0:18:46.280 --> 0:18:48.720 Dow futures down forty one or a ten of upper cent, 0:18:49.080 --> 0:18:51.600 NASA futures down three tens of upper cent or about 0:18:51.640 --> 0:18:54.280 thirty seven points. The decks in Germany's down a third 0:18:54.280 --> 0:18:57.120 of up percent ten Your treasury little change. You'll three 0:18:57.119 --> 0:18:58.960 point five three percent in the yield on the two 0:18:59.040 --> 0:19:02.800 year four point three four percent. That's a Bloomberg Business flash. 0:19:02.800 --> 0:19:04.879 Now here's Michael Barr with more on what's going on 0:19:04.920 --> 0:19:07.560 around the world, Michael Karen, thank you very much. Senator 0:19:07.640 --> 0:19:11.600 Raphael Warnock defeated Republican challenge Herschel Walker in their runoff 0:19:11.680 --> 0:19:15.639 for Georgia's Senate seat, giving Democrats a fifty one forty 0:19:15.720 --> 0:19:18.879 nine edge in the Upper Chamber. Warnock beat Walker with 0:19:19.000 --> 0:19:21.119 fifty one point four percent of the vote. More on 0:19:21.160 --> 0:19:23.840 the Georgia race in a minute. In a sharp reversal, 0:19:23.920 --> 0:19:27.359 China has announced a series of measures rolling back some 0:19:27.520 --> 0:19:31.920 of its most draconian anti COVID nineteen restrictions. The National 0:19:31.920 --> 0:19:34.920 Health Commission announced that COVID nineteen test and a clean 0:19:34.960 --> 0:19:38.560 bill of health displayed on a smartphone app would no 0:19:38.640 --> 0:19:41.919 longer be required in the NHL. The Devil's won, the 0:19:41.920 --> 0:19:44.840 Islanders lost. Global news twenty four hours a day on 0:19:44.960 --> 0:19:47.399 here and on Bloomberg quick Take, powered by more than 0:19:47.480 --> 0:19:50.199 twenty seven hundred journalists an analyst in more than one 0:19:50.520 --> 0:19:54.160 twenty countries. I'm Michael Barr. This is Bloomberg Gaming all right, 0:19:54.160 --> 0:19:57.520 Thank you, Michael. It is on Wall Street. I'm Amy Morris. 0:19:57.520 --> 0:20:00.840 This is Bloomberg Daybreak. Democratic Senator f L. Warneck As 0:20:00.920 --> 0:20:03.360 Unchaeld was just telling you one re election in Georgia, 0:20:03.680 --> 0:20:06.920 defeating challenger Republican herschel Walker. We want to continue our 0:20:06.960 --> 0:20:09.520 conversation about this with Wendy Schiller, the director of the 0:20:09.520 --> 0:20:13.200 Talban Center for American Politics and Policy at Brown University, 0:20:13.280 --> 0:20:15.800 and Wendy. We were talking earlier this morning with Terry 0:20:15.840 --> 0:20:19.680 Haynes of PANGEA Policy, and he believes this could mean 0:20:19.680 --> 0:20:22.560 the end of Donald Trump in the GOP. The task 0:20:22.600 --> 0:20:25.720 for the Republican Party over the past two years has 0:20:25.800 --> 0:20:28.439 been that, you know, how do we get channel we 0:20:28.520 --> 0:20:31.600 how do we get past this particular speed bump. And 0:20:31.680 --> 0:20:34.720 you know that process I think has greatly accelerated since 0:20:34.800 --> 0:20:38.240 the UH, since the mid terms. But between the mid 0:20:38.359 --> 0:20:42.960 term results, Trump's tone deaf announcement and UH, and then 0:20:43.280 --> 0:20:46.680 the whole business about suspending the Constitution, which is UH, 0:20:46.800 --> 0:20:49.720 I really think is beyond the pale for h For 0:20:49.760 --> 0:20:52.240 a great number of the party leaders. They're gonna look 0:20:52.240 --> 0:20:55.160 now to try to make sure he's fenced out. Now 0:20:55.240 --> 0:20:58.800 does he have a point there? Well? I mean, you know, 0:20:58.840 --> 0:21:01.840 the question is do you get you sort of allowed 0:21:01.880 --> 0:21:04.200 Donald Trump or pushed down Trump to fade into the background. 0:21:04.320 --> 0:21:06.359 But what about Trump? Is um? You know that the 0:21:06.480 --> 0:21:09.560 issues that Trump raised and and one on in sixteen 0:21:09.640 --> 0:21:13.280 have not gone away. And we've seen a consistent loyalty 0:21:13.560 --> 0:21:17.520 two Republicans among people who are less than college educated, 0:21:17.600 --> 0:21:21.000 let's say, um or high school educated and consider themselves 0:21:21.000 --> 0:21:24.200 a quote unquote working class that used to be fodder 0:21:24.200 --> 0:21:27.760 for the Democrats. Now it's been consistently uh fodder for 0:21:27.760 --> 0:21:30.800