WEBVTT - Bloomberg Daybreak: December 16, 2022 - Hour 2 (Radio) 0:00:01.960 --> 0:00:05.360 Markets, headlines and breaking news twenty four hours a day 0:00:05.440 --> 0:00:08.440 at Bloomberg dot Com, The Bloomberg Business at and at 0:00:08.440 --> 0:00:17.919 Bloomberg Quick Take. This is a Bloomberg Business lash and 0:00:17.960 --> 0:00:21.800 I'm Karen Moscow. And futures this morning are following. SMP 0:00:21.960 --> 0:00:24.720 Future is down one point one percent, down forty four points. 0:00:24.760 --> 0:00:27.000 NOWN futures down one point one percent or three hundred 0:00:27.000 --> 0:00:30.000 sixty seven points at Nasdack futures down three quarters of 0:00:30.040 --> 0:00:32.120 a percent, or eighty seven points this morning. And we 0:00:32.200 --> 0:00:34.640 check the markets all day long here on Bloomberg Radio. 0:00:34.960 --> 0:00:37.120 The decks in Germany's down eight tens of upper cent. 0:00:37.240 --> 0:00:40.120 The tenure Treasury down twelve thirty seconds l three point 0:00:40.120 --> 0:00:42.279 four nine percent. They yield on the two year four 0:00:42.320 --> 0:00:45.239 point to five percent. Nine neck Screwed oil is down 0:00:45.280 --> 0:00:47.879 one percent on a dollar thirty nine at seventy four 0:00:47.920 --> 0:00:50.440 dollar seventy two cents a barrel. Comics gold up a 0:00:50.479 --> 0:00:54.160 quarter percent or four dollar sixty cents at seventeen fifty announced. 0:00:54.520 --> 0:00:57.200 The euro one point oh six three three against the dollar, 0:00:57.280 --> 0:00:59.680 British found one point one eight nine. The end is 0:00:59.720 --> 0:01:02.600 at one thirty seven point oh four and Bitcoin is 0:01:02.640 --> 0:01:05.800 down two at about seventeen thousand dollars, and that's a 0:01:05.840 --> 0:01:09.160 Bloomberg business flash. Nathan. All right, Karen, thank you. It 0:01:09.200 --> 0:01:11.800 is six fifty six on Wall Street. Bloomberg Surveillance is 0:01:11.880 --> 0:01:13.399 up next, but first we take a look at some 0:01:13.400 --> 0:01:15.959 of the names moving in the pre market. Bloomberg Radio 0:01:15.959 --> 0:01:19.440 and TV Markets correspondent Credy Gupta is with us now, Crety, 0:01:19.440 --> 0:01:22.080 I don't know what your most active security screen looks like, 0:01:22.120 --> 0:01:23.679 but I'm not seeing a whole lot of green out 0:01:23.680 --> 0:01:26.399 there this morning. Now. A lot of pain across the board, 0:01:26.400 --> 0:01:28.360 and I would argue it's almost worse because there's some 0:01:28.480 --> 0:01:30.840 real pain in those big tech names. Surprise, surprise, and 0:01:30.840 --> 0:01:34.040 now remember very big sustainable kind of turnaround that we're 0:01:34.040 --> 0:01:36.000 looking for in the stock more or even the Santa Rally. 0:01:36.040 --> 0:01:37.760 You want your games to be pretty big, and that 0:01:37.840 --> 0:01:40.040 includes a lot of the big tech names. Of course, 0:01:40.040 --> 0:01:41.520 we are not seeing that this morning. Let me give 0:01:41.520 --> 0:01:44.959 you an example. Your Amazon shares a m z N. 0:01:45.360 --> 0:01:47.880 This morning, it is dropping by about seven tenths of 0:01:47.880 --> 0:01:49.640 one percent. Now with the good news here is that 0:01:49.680 --> 0:01:51.880 it was much much lower, was down almost two percent 0:01:51.960 --> 0:01:54.400 earlier in the session. Some of those losses are getting paired, 0:01:54.440 --> 0:01:57.360 But this comes after JP Morgan cut its price target 0:01:57.360 --> 0:01:59.360 on the stock to a hundred and thirty dollars from 0:01:59.360 --> 0:02:02.840 a hundred and forty five, primarily due to the AWS 0:02:02.920 --> 0:02:06.920 revenue their cloud business, basically saying that that revenue is decelerating. 0:02:06.920 --> 0:02:12.000 They're also expecting margin compression and challenging macro conditions. Sound familiar, 0:02:12.040 --> 0:02:14.959 we've kind of before quite a bit, but look, they're 0:02:14.960 --> 0:02:17.200 talking their price, talking about a hundred and thirty dollars 0:02:17.200 --> 0:02:19.440 on the stock and right now it's trading about eighty seven. 0:02:19.480 --> 0:02:22.200 So they are still bullish, just not as bullish as 0:02:22.240 --> 0:02:24.800 they used to be. Although it's interesting Creedy. We're seeing 0:02:24.800 --> 0:02:27.920 one other tech names start to move higher on a 0:02:28.040 --> 0:02:32.480 change in an analyst recommendation. Sort of a fundamental story 0:02:32.600 --> 0:02:36.080 for meta platforms and really being rewarded in the stock market. 0:02:36.280 --> 0:02:38.680 M E t A is your ticker up about two 0:02:38.720 --> 0:02:41.560 point one percent in the pre market. Show's trading around 0:02:41.600 --> 0:02:45.120 one eighteen sixty four This morning. JP Morgan raising the 0:02:45.120 --> 0:02:48.280 recommendation on the stock once again. JP Morgan moving markets 0:02:48.280 --> 0:02:51.200 this morning, king the recommendation on the stock to overweight 0:02:51.280 --> 0:02:54.600 from neutral. Uh. Their reasoning is increased cost discipline and 0:02:54.639 --> 0:02:57.200 a more favorable revenue outlook. Now this is really important 0:02:57.200 --> 0:02:59.560 because one of the issues that Metal Platforms has had 0:02:59.560 --> 0:03:01.799 and really when punished for from the stock, has been 0:03:01.840 --> 0:03:05.600 this idea that the metaverse and the investment that's going 0:03:05.639 --> 0:03:08.519 to take to really not just rebrand, but to really 0:03:08.520 --> 0:03:11.160 actively invest in that business model. It's going to take 0:03:11.200 --> 0:03:13.359 a lot, and they don't actually have that kind of money, 0:03:13.639 --> 0:03:16.160 uh to to really spend, given that they are still 0:03:16.240 --> 0:03:18.799 working on essentially their social media business. But what's that 0:03:19.000 --> 0:03:22.440 the facebooks, the Instagram. Um. Nevertheless, they are saying that, look, 0:03:22.480 --> 0:03:25.359 they can make this work, and that is a good thing, 0:03:25.440 --> 0:03:27.920 especially in this environment. So meta, like I said, really 0:03:27.919 --> 0:03:30.320 getting rewarded. And remember it's in the backdrop of features 0:03:30.360 --> 0:03:32.680 down one point one percent, so this is an extra 0:03:32.720 --> 0:03:36.360 boost to see it higher by two. And just quickly, Creedy, 0:03:36.520 --> 0:03:38.880 what's going on with land Vin? That's like right up 0:03:38.920 --> 0:03:41.520 top of the biggest gamers this morning. I'm so glad 0:03:41.560 --> 0:03:43.000 you said it, and I didn't have to because I 0:03:43.040 --> 0:03:44.960 google the French pronunciation. I was like, I can't say 0:03:45.000 --> 0:03:49.240 that like that that I'm just not even but A 0:03:49.520 --> 0:03:52.000 L A n V is your taker and actually just 0:03:52.040 --> 0:03:54.520 went public yesterday now this is really important. The shares 0:03:54.560 --> 0:03:57.480 are up forty six percent, seeing a lot of autility there. 0:03:57.560 --> 0:04:00.720 Yesterday the best stock bounces as much as fifty two 0:04:00.880 --> 0:04:04.000 hundred and so really keep an eye on these shares. 0:04:04.440 --> 0:04:08.120 MALC Bloomberg Grady on TV Markets correspondent Creaty Good Down 0:04:08.560 --> 0:04:11.200 Future is moving lower. SMP futures down forty four down 0:04:11.240 --> 0:04:14.560 futures down three sixty eight. Nanastack futures are lower by 0:04:14.800 --> 0:04:18.320 ninety points this morning. This is Bloomberg Daybreak. I'm Nathan 0:04:18.360 --> 0:04:22.320 Hagar along with Karen Moscow. It is six fifty nine 0:04:22.520 --> 0:04:26.240 on Wall Street. Bloomberg Surveillance with Jonathan Farrell and Elisa 0:04:26.320 --> 0:04:32.200 Abramowitz starts right now by from the financial capital of 0:04:32.240 --> 0:04:35.680 the world, broadcasting across the globe. This is w b 0:04:35.760 --> 0:04:46.200 b R, New York, Bloomberg. He living three old infrenational, 0:04:47.400 --> 0:04:54.600 but there these EUSt markets headlines and breaking news twenty 0:04:54.600 --> 0:04:57.400 four hours a day at Bloomberg dot Com, the Bloomberg 0:04:57.480 --> 0:05:00.480 Business apt and at Bloomberg Quick Tape three. He's a 0:05:00.520 --> 0:05:09.360 bloom Burn Business Lash and I'm Camrad Moscow. And futures 0:05:09.360 --> 0:05:12.240 are following this morning, but they are off the loads 0:05:12.360 --> 0:05:14.320 of this session. We get to the first word, breaking 0:05:14.360 --> 0:05:18.080 news dance for today's morning call, and here's Tatiana Darier. Tatiana, 0:05:18.120 --> 0:05:20.839 good morning, Good morning, Karen. Like you said, it's still 0:05:20.880 --> 0:05:23.560 a risk off on Wall Street with down SMP features 0:05:23.600 --> 0:05:26.560 down one percent, while NAS jack is lower by six tents. 0:05:26.880 --> 0:05:29.799 The tenor Treasury yield is higher by five basis points 0:05:29.839 --> 0:05:33.159 to three spot for this morning. Oil is down to 0:05:33.400 --> 0:05:37.680 and Bitcoin also under pressure, hovering just above seventeen thousand. 0:05:38.080 --> 0:05:40.800 Else Where, European stocks are lower at this hour, while 0:05:40.920 --> 0:05:43.680 Asian stocks were mixed overnight. Back in the US. On 0:05:43.720 --> 0:05:46.480 the economic front, today, we have SMP Global p M 0:05:46.640 --> 0:05:50.480 s AT in early trading this morning. Meta is up 0:05:50.520 --> 0:05:54.520 two percent after an upgrade from JP Morgan siting increased 0:05:54.560 --> 0:05:57.720 cost discipline and a better revenue outlook, and Adobe is 0:05:57.800 --> 0:06:01.200 up four after earning speat estimates last night. Also in 0:06:01.279 --> 0:06:04.240 deal news, private equity firm at An International agreed to 0:06:04.279 --> 0:06:08.039 buy max Our Technology for four billion dollars. And wrapping 0:06:08.080 --> 0:06:11.600 things up here, Delta Airlines and American Air both upgraded. 0:06:11.680 --> 0:06:14.440 At Goldman Live from the First and Breaking news desk, 0:06:14.560 --> 0:06:18.560 I'm Tatianataria, Karen, Tatiana, thank you, and here live breaking 0:06:18.560 --> 0:06:21.360 news of your bloombergy cap squawk on your terminal scue. 0:06:21.400 --> 0:06:24.120 You a w u K and that's a Bloomberg business flash. 0:06:24.160 --> 0:06:26.800 Now here's Amy Morrish with Moore on what's going on 0:06:26.839 --> 0:06:29.600 around the world. Amy, all right, thank you, Kieren. Ukrainian 0:06:29.640 --> 0:06:33.200 authorities have reported explosions in at least three cities, saying 0:06:33.279 --> 0:06:37.200 Russia has launched a major missile attack on energy facilities 0:06:37.240 --> 0:06:40.800 and to infrastructure. One Ukrainian Air Force spokesman says Russia 0:06:40.800 --> 0:06:44.599 has now fired more than sixty missiles. The annual number 0:06:44.640 --> 0:06:47.920 of new Parkinson's disease cases in the US is likely 0:06:48.000 --> 0:06:51.360 fifty percent higher than estimated. A new study predicts the 0:06:51.440 --> 0:06:55.239 number of Americans diagnosed with Parkinson's will reach ninety thousand 0:06:55.360 --> 0:06:58.360 this year. And sports, the Caps, Ruins and Devils lose, 0:06:58.440 --> 0:07:01.840 the Rangers win. The World Cup final between Argentina and 0:07:01.880 --> 0:07:04.919 France is set for Sunday. Global News twenty four hours 0:07:04.920 --> 0:07:07.720 a day on airand on Bloomberg Quick Take, powered by 0:07:07.800 --> 0:07:11.120 more than twenty journalists and analysts in more than one 0:07:11.160 --> 0:07:15.120 hundred twenty countries. On Amy Moore, is this is Bloomberg art? Right? Yeah? 0:07:15.120 --> 0:07:17.040 Looking forward to back game? Maybe alright? Thank you at 0:07:17.040 --> 0:07:19.040 A sixty two on Wall Street, and we turned to 0:07:19.120 --> 0:07:21.760 news and science and technology Now with a Bloomberg n 0:07:21.840 --> 0:07:24.320 j I T Stemmer Report, and it's brought to you 0:07:24.400 --> 0:07:27.000 buy New Jersey Institute of Technology n j a i 0:07:27.080 --> 0:07:30.560 T offers New Jersey's first undergraduate degree in fintech tech 0:07:30.640 --> 0:07:33.320 driven finance focused. What will you make at n j 0:07:33.480 --> 0:07:35.880 I T. Learn more at nj I T dot E 0:07:35.960 --> 0:07:40.320 d U slash fintech Now. Here's just making news and science, technology, engineering, 0:07:40.360 --> 0:07:44.400 and math. Fusion power plants are possible on the electricity 0:07:44.440 --> 0:07:47.280 grid within the next decade, which could supply a limitless 0:07:47.280 --> 0:07:50.480 amount of carbon free power, according to former U S 0:07:50.600 --> 0:07:54.600 Energy Secretary Ernest Monies. The comments come after scientists in 0:07:54.640 --> 0:07:57.480 California managed for the first time to generate more energy 0:07:57.560 --> 0:08:00.400 from a fusion reaction than they needed to treat grit. 0:08:00.760 --> 0:08:04.440 The UK has begun talks on a scientific cooperation deal 0:08:04.520 --> 0:08:07.240 with Japan it hopes to sign in May. The UK 0:08:07.440 --> 0:08:11.120 Science and Technology Minister said as the country remains blocked 0:08:11.160 --> 0:08:14.640 from Horizon, the EU S key research funding program post 0:08:14.720 --> 0:08:18.480 breaks it and trade groups representing Meta and Alphabet say 0:08:18.480 --> 0:08:21.400 they asked the Supreme Court to overturn a Texas law 0:08:21.760 --> 0:08:25.960 that would sharply restrict the editorial discretion of social media companies. 0:08:26.200 --> 0:08:29.160 The appeal contends the law violates the First Amendment by 0:08:29.200 --> 0:08:32.840 forcing social media companies to disseminate what they see as 0:08:32.880 --> 0:08:36.439 harmful speech and putting platforms at risk of being overrun 0:08:36.440 --> 0:08:39.439 by spam and bullying. And that's the Bloomberg n j 0:08:39.600 --> 0:08:42.360 I t STEM report, Nathan. That could be a case 0:08:42.400 --> 0:08:44.280 to watch for sure. Thank you, Karen, and we're coming 0:08:44.320 --> 0:08:46.679 up to sixty four on Wall Street. Now it's time 0:08:46.720 --> 0:08:48.439 to check what's going on in d See. Some of 0:08:48.480 --> 0:08:50.920 the top stories in our nation's capital include the Pentagon 0:08:51.000 --> 0:08:55.280 revving up Ukraine weapons aid as Russian missile barrages continue, 0:08:55.720 --> 0:08:58.320 the Senate passing a one week spending bill to avert 0:08:58.400 --> 0:09:01.679 a Saturday shut down. President Biden is saying he will 0:09:01.720 --> 0:09:05.160 visit Africa to extend US influence on the continent, and 0:09:05.400 --> 0:09:09.800 a big vote of confidence for the president from Democratic 0:09:10.000 --> 0:09:14.000 congressional leadership. Let's bring in Bloomberg government reporter Emily Wilkins 0:09:14.160 --> 0:09:16.640 for more on some of these stories. Emily, good morning. 0:09:16.679 --> 0:09:20.439 It seems as though the bombardments from Russia on Ukraine's 0:09:20.520 --> 0:09:24.200 energy infrastructure aren't letting up, and now we are seeing 0:09:24.240 --> 0:09:29.600 movement from the Pentagon to really ramp up defenses. Yes, Nathan, 0:09:29.640 --> 0:09:31.840 I mean remember that Biden has said that the US 0:09:31.960 --> 0:09:34.440 is going to continue to supply Ukraine with weapons to 0:09:34.480 --> 0:09:37.440 fight brush up for as long as it takes. There 0:09:37.559 --> 0:09:40.960 is still a high level of bipartisan support in Washington 0:09:41.000 --> 0:09:44.679 to continue supporting Ukraine. We expect to see that continue 0:09:45.080 --> 0:09:47.600 into the next Congress, even with some shifts and leadership. 0:09:47.960 --> 0:09:50.400 But part of the equation here is, of course, just 0:09:50.480 --> 0:09:52.839 simply the supply side of things. We've heard so much 0:09:52.840 --> 0:09:55.880 about supply chain demands and back blogs, and that is 0:09:55.920 --> 0:09:59.880 something that still affects the defense industry. And so you're 0:10:00.000 --> 0:10:03.400 seeing the Pentagon really look at its procurement process and 0:10:03.440 --> 0:10:07.160 how it's making its acquisition offers. And they're actually Bloomberg 0:10:07.240 --> 0:10:10.000 reporting that the Pentagon is finding ways to sort of 0:10:10.000 --> 0:10:13.199 do some shortcuts to standard contracting procedures just to make 0:10:13.240 --> 0:10:17.320 sure that the US weapons supply still remains strong, UH, 0:10:17.520 --> 0:10:20.600 even as they continue to supply Ukraine with the more 0:10:20.640 --> 0:10:23.920 weapons they need. Clearly, this this fight is continuing on 0:10:24.000 --> 0:10:27.520 in Ukraine. UH, that there's not a foreseeable end date 0:10:27.640 --> 0:10:31.720 at this point, um. And it's just you know, very notable, 0:10:32.080 --> 0:10:34.400 um that to make sure that both Ukraine and the 0:10:34.520 --> 0:10:37.319 US are having its defense needs met a the Pentagon 0:10:37.440 --> 0:10:41.400 is now doing things like having some parts delivered via 0:10:41.480 --> 0:10:45.839 contracts before the contracts terms and prices are really finalized. 0:10:46.080 --> 0:10:48.319 And this is just being done in in the light 0:10:48.360 --> 0:10:50.920 of the fact that this contract, the conflict of Ukraine 0:10:51.000 --> 0:10:53.360 might last for some time, but but the US wants 0:10:53.360 --> 0:10:57.200 to continue to be there and be supportive of Ukraine. 0:10:57.559 --> 0:11:00.280 And of course, as you know, Emily, defense spending every 0:11:00.360 --> 0:11:04.080 year is a major part of the negotiations, the debate 0:11:04.160 --> 0:11:08.240 that goes on in Washington over full year spending for 0:11:08.320 --> 0:11:12.880 the federal government. And now it looks like officially lawmakers 0:11:12.880 --> 0:11:15.680 are giving themselves just a little bit more time to 0:11:16.440 --> 0:11:21.040 iron out their differences here. Yeah, this initial temporary spending 0:11:21.040 --> 0:11:23.400 bill was going to end today, but we're not going 0:11:23.480 --> 0:11:25.800 to have a shutdown. The House and the Senate have 0:11:26.040 --> 0:11:29.000 both passed a temporary stop gap that will lead us 0:11:29.040 --> 0:11:32.360 to December twenty three, getting a little coast closed to Christmas. There, 0:11:32.960 --> 0:11:36.560 the lawmakers say that they have come up with an agreement. 0:11:36.840 --> 0:11:39.640 We are expecting to learn more details this weekend and 0:11:39.679 --> 0:11:42.200 see it voted on next week. So there is still 0:11:42.240 --> 0:11:44.520 potential that we are going to be seen the government 0:11:44.679 --> 0:11:48.160 fully funded just in time for Christmas Eve? Is there 0:11:48.200 --> 0:11:50.040 going to be full funding? I mean, there was some 0:11:50.120 --> 0:11:53.360 of that debate, particularly on the Republican side, that they 0:11:53.360 --> 0:11:55.880 want an even longer stop gaps so that they can 0:11:55.960 --> 0:11:59.079 take control of Congress at least in the House and 0:11:59.440 --> 0:12:02.040 put forward their own full year spending bill. Is that 0:12:02.240 --> 0:12:05.920 still part of the debate. There are certainly Republicans who 0:12:05.960 --> 0:12:08.160 want to see that happen. And let's be clear, in 0:12:08.200 --> 0:12:11.680 the House, you have Republican leader Kevin McCarthy who has said, 0:12:11.720 --> 0:12:14.440 you know that he does not support that this this 0:12:14.520 --> 0:12:17.600 year long spending bill. He's whipping against it. He's urging 0:12:17.640 --> 0:12:20.040 his colleagues to vote, know many of them are. But 0:12:20.080 --> 0:12:22.560 it's a completely different story over in the Senate, where 0:12:22.559 --> 0:12:25.480 Mitch McConnell has said that he has a deadline of 0:12:25.600 --> 0:12:30.800 passing this funding package by next Thursday, and so he's 0:12:30.840 --> 0:12:33.920 basically leaving the door open, and a number of lawmakers, 0:12:34.080 --> 0:12:37.360 Democrats and Republicans alike, who work very closely on this 0:12:37.440 --> 0:12:39.679 package say that they want to get it done. I mean, 0:12:39.720 --> 0:12:44.160 for certain folks like Richard Shelby, Republican Senator. He's retiring 0:12:44.240 --> 0:12:47.640 and the you know, appropriations funding the government. It's been 0:12:47.679 --> 0:12:49.959 a lot of his work in Congress and he wants 0:12:50.000 --> 0:12:52.880 to leave with a mission complete on his end. Now, 0:12:52.960 --> 0:12:55.400 last minute here, Emily, of course, we know that President 0:12:55.440 --> 0:12:58.959 Biden is planning on formally announcing a decision on re 0:12:59.120 --> 0:13:02.959 election after the holidays. It looks like he's getting even 0:13:03.160 --> 0:13:06.880 more support ahead of that decision. Yeah, you had a 0:13:06.960 --> 0:13:09.160 number of lawmakers come out and say that they will 0:13:09.200 --> 0:13:12.840 continue to support Biden. He got two very big endorsements 0:13:12.840 --> 0:13:15.800 in his corner, how Speaker Nancy Pelosi and Senate Majority 0:13:15.840 --> 0:13:18.960 Leader Chuck Schumer. Of course, Pelosi will be stepping down 0:13:19.080 --> 0:13:22.880 as Speaker next year and stepping down from Democratic leadership, 0:13:22.960 --> 0:13:27.079 but she's still a very strong voice within the Democratic Party. 0:13:27.160 --> 0:13:31.000 Is certainly an incredibly prolific fundraiser. That's always important when 0:13:31.040 --> 0:13:34.000 it comes to politics. Um and both of them have 0:13:34.160 --> 0:13:37.680 said recently that they would support Biden, that he did, 0:13:37.679 --> 0:13:40.120 They think he's done an excellent job, and that they 0:13:40.120 --> 0:13:43.079 hope that he does run for reelection. It's about thirty 0:13:43.080 --> 0:13:45.400 seconds left here, Emily is there's still that the same 0:13:45.520 --> 0:13:48.679 level of support from the younger generation that Pelosi is 0:13:48.800 --> 0:13:54.360 moving aside to bring forward either. Definitely are some younger 0:13:54.440 --> 0:13:56.920 lawmakers who have said that they think that Biden has 0:13:56.920 --> 0:13:59.600 done a good job and should continue to run. You 0:13:59.679 --> 0:14:02.400 have other lawmakers who have spoken up and said, you 0:14:02.440 --> 0:14:04.400 know that they think that it is time for a 0:14:04.520 --> 0:14:08.040 younger person or Democrats to look at potential other candidates. 0:14:08.440 --> 0:14:10.040 I think at this point a lot of them have 0:14:10.120 --> 0:14:12.520 been able to serve decline being on the record just 0:14:12.640 --> 0:14:15.440 because it's still a hypothetical. At this point, Biden has 0:14:15.480 --> 0:14:19.680 not yet formally announced for even though he has alluded 0:14:19.760 --> 0:14:22.760 to multiple times that he will continue to run and 0:14:23.040 --> 0:14:25.320 that he plans to campaign for a second term. I'm 0:14:25.320 --> 0:14:27.520 sure're gonna be a door stopping on Capitol Hill to 0:14:27.520 --> 0:14:31.920 get some of those younger lawmakers on the record. Thank you, Emily, 0:14:32.040 --> 0:14:35.760 as always, Bloomberg Government Congressional reporter Emily Wilkins with us 0:14:35.880 --> 0:14:38.600 from the nation's capital. Read more at Bloomberg dot com, 0:14:38.680 --> 0:14:41.640 ra on the Bloomberg terminal, Listen to Bloomberg Radio in Washington. 0:14:41.720 --> 0:14:44.480 Bloomberg Thank you, nine one and one oh five point 0:14:44.520 --> 0:14:47.640 seven F M H D two futures moving lower. This 0:14:48.400 --> 0:14:55.200 is Bloomberg Markets, headlines and breaking news twenty four hours 0:14:55.200 --> 0:14:58.200 a day at Bloomberg dot Com, the Bloomberg Business at 0:14:58.240 --> 0:15:07.880 and at Bloomberg Ritake. She's a Bloomburn Business Flash and 0:15:07.920 --> 0:15:10.080 I'm Karen Moscow. This update is brought to you by 0:15:10.120 --> 0:15:13.440 the Jewish Communal Fund j c F. Donor advised fund 0:15:13.560 --> 0:15:16.600 is the smart, tax efficient way to manage your philanthropy. 0:15:16.920 --> 0:15:19.360 Open a j c F fund now to lock in 0:15:19.400 --> 0:15:23.320 a two tax deduction, visit j c F n y 0:15:23.520 --> 0:15:27.080 dot org. And US stock index futures are falling this morning, 0:15:27.080 --> 0:15:29.680 with SNP futures down forty three points or one point 0:15:29.720 --> 0:15:32.840 one percent, Dow futures down one percent or three forty 0:15:32.920 --> 0:15:35.040 six points, and NASDAC futures down eight tens of a 0:15:35.160 --> 0:15:37.880 percent or ninety one points. At ten year Treasury down 0:15:37.880 --> 0:15:40.360 thirteen thirty seconds. He on three point four nine percent 0:15:40.640 --> 0:15:43.120 and as a Bloomberg Business Flash. Now, here's Amy Morris 0:15:43.120 --> 0:15:45.320 with Moore on what's going on around the world. Amy, 0:15:45.800 --> 0:15:48.560 thank you, Karen. The White House is encouraging Americans to 0:15:48.600 --> 0:15:52.200 get their updated COVID nineteen vaccine to prevent the spread 0:15:52.280 --> 0:15:55.240 of the virus. Over the winter. White House COVID nineteen 0:15:55.280 --> 0:16:00.000 Response Coordinator Dr jah says COVID cases and hospitalizations are 0:16:00.000 --> 0:16:03.120 are on the rise across the country. Confidential data of 0:16:03.120 --> 0:16:06.440 about a hundred twelve thousand taxpayers inadvertently published by the 0:16:06.480 --> 0:16:10.160 i R S over the summer was mistakenly published again 0:16:10.480 --> 0:16:14.600 in late November, including names in contact information and sports, 0:16:14.600 --> 0:16:17.440 the Caps, the Bruins, the Devils, I'll lose, Rangers win 0:16:17.760 --> 0:16:20.360 the World Cup final between Argentina and Brandt. Set for 0:16:20.440 --> 0:16:22.960 Sunday Global News twenty four hours a day on errand 0:16:22.960 --> 0:16:25.600 on Bloomberg Quick Take, powered by more than twenty seven 0:16:25.680 --> 0:16:28.840 hundred journalists and analysts and more than one hundred twenty countries. 0:16:29.240 --> 0:16:32.280 I'm anymore as this is Bloomberg, Nathan, Thanks Amy. It's 0:16:32.320 --> 0:16:34.680 six twenty three on Wall Street. I'm Nathan Hagar. This 0:16:34.840 --> 0:16:38.280 is Bloomberg Daybreak. Let's move to commodities now. It's been 0:16:38.320 --> 0:16:41.960 a tumultuous year for the asset class, marked by surging prices, 0:16:42.000 --> 0:16:45.360 tied in parts of the war in Ukraine, and set 0:16:45.440 --> 0:16:48.720 to be another banner year. That's the view from Jeff Curry, 0:16:48.800 --> 0:16:52.160 head of Commodities Research at Goldman Sachs. He expects commodities 0:16:52.160 --> 0:16:55.640 in fact, to be the best performing asset class next year. 0:16:56.000 --> 0:16:59.360 Curry sat down with Bloomberg's Alex Steel and Guy Johnson 0:16:59.440 --> 0:17:02.720 to explain, let's listen in, Yeah, is a pretty awesomely 0:17:02.840 --> 0:17:05.960 bold call. Um, where are we in the cycle that 0:17:06.080 --> 0:17:09.479 leads you to such bullishness? Old call? Let's remember oils 0:17:09.520 --> 0:17:12.879 treating with a fifty ball, So is not even a 0:17:12.920 --> 0:17:16.879 one standard deviation. Let's just you know, I remember we 0:17:16.920 --> 0:17:19.399 just did twelve bucks to the downside last week and 0:17:19.480 --> 0:17:22.720 rebounded six and down another two today. So um, And 0:17:22.760 --> 0:17:24.679 if I think, you know, when we look at go 0:17:24.840 --> 0:17:28.359 back to our call for a supercycle back in October, 0:17:29.400 --> 0:17:34.320 you haveent returns, you know, so far we're headed towards 0:17:34.359 --> 0:17:39.879 somewhere around twenty three percent returns and in two So 0:17:40.119 --> 0:17:43.840 this is a continuation of the strong returns that we've 0:17:43.840 --> 0:17:46.200 been seen over the last several years. I think the 0:17:46.240 --> 0:17:49.679 bottom line, when we think about what a supercycle really is, 0:17:50.040 --> 0:17:53.240 it's not this big upward trend in prices that we 0:17:53.359 --> 0:17:56.560 have envisioned in our heads. It's a sequence of spikes. 0:17:56.680 --> 0:18:01.120 And because commodity prices perform and eken make function, they 0:18:01.119 --> 0:18:04.680 have to rebalance supply demand bring them back in a line. 0:18:04.720 --> 0:18:06.480 When they get out of line like they did at 0:18:06.480 --> 0:18:09.760 the end of one and the early part of this year. Well, 0:18:10.080 --> 0:18:14.679 market to rebalanced right now today. Why because China is 0:18:14.760 --> 0:18:17.520 being locked down, So demand came back down on top 0:18:17.560 --> 0:18:20.560 of supply. Prices class back down. But we have not 0:18:20.680 --> 0:18:24.439 been investing in supply. Supply is stagnant. So I have 0:18:24.520 --> 0:18:27.639 to just simply ask what happens when China, the largest 0:18:27.680 --> 0:18:31.119 commodity consumer in the world, the largest oil importer in 0:18:31.160 --> 0:18:34.560 the world, begins to rebound significantly in the first part 0:18:34.560 --> 0:18:36.880 of next year. It's going to tighten all of these 0:18:36.920 --> 0:18:40.400 markets tremendously and put a lot of upward pressure on prices. 0:18:40.440 --> 0:18:42.879 And I think the key point is, you know, you 0:18:43.000 --> 0:18:46.199 basically have the largest you know, commodity consumer in the 0:18:46.240 --> 0:18:49.840 world essentially hibernating over the course of the last year, 0:18:49.880 --> 0:18:52.640 and that's been hiding a lot of this under investment. 0:18:52.720 --> 0:18:57.119 So really the core point here under investment, we demand today, 0:18:57.160 --> 0:19:01.240 but we see sequential growth in three it begins to 0:19:01.280 --> 0:19:05.600 tighten these markets. One last point, inventorres have been exhausted, Jeff, 0:19:05.640 --> 0:19:09.000 Let's talk about that China China narrative. We are seeing 0:19:09.040 --> 0:19:12.520 a huge one eight they are reopening, but what comes 0:19:12.560 --> 0:19:15.000 with that is likely to be a huge pickup in cases, 0:19:15.080 --> 0:19:17.639 We're starting to see data being crunched on that and 0:19:17.680 --> 0:19:20.080 the numbers look pretty bad. How should we be thinking 0:19:20.080 --> 0:19:22.439 about the China reopening therefore? Isn't going to be similar 0:19:22.480 --> 0:19:25.159 to the one that we experienced. I stop start, stop, starts, 0:19:25.800 --> 0:19:28.159 and kind of how does that work? How does that 0:19:28.200 --> 0:19:31.480 impact the commodity price? Um? I think oil is it 0:19:31.560 --> 0:19:33.879 a testament to it. It's gonna be a really rough, 0:19:34.000 --> 0:19:37.359 bumpy start at the very beginning. But when so oil 0:19:37.440 --> 0:19:40.159 is doing like this, you know each week big violent 0:19:40.200 --> 0:19:42.879 moves because you know you're gonna have your fits and start, 0:19:42.960 --> 0:19:47.280 stops and stops. But when you take markets like oil 0:19:47.440 --> 0:19:51.480 equities are copper, they're more forward looking. They're looking into 0:19:51.840 --> 0:19:55.640 March April of next year. As a result, they don't 0:19:55.680 --> 0:19:58.240 have that same kind of noise. And that's Jeff Curry, 0:19:58.240 --> 0:20:01.080 ahead of Commodities Research at Goldman Acts, speaking with Bloomberg's 0:20:01.080 --> 0:20:03.720 Alex Steel and Guy Johnson. You can catch more of 0:20:03.760 --> 0:20:07.440 that conversation on Bloomberg dot com and on the Bloomberg 0:20:07.560 --> 0:20:11.040 terminal this morning. Concern about rising interest rates and the 0:20:11.119 --> 0:20:15.439 outlook for policy is putting pressure on energy commodities. Looking 0:20:15.440 --> 0:20:18.880 at NIMEX, crude West Texas Intermediate is down two point 0:20:18.960 --> 0:20:21.320 one percent or a dollar fifty nine, trading at seventy 0:20:21.359 --> 0:20:25.160 four fifty two barrel Brant. The international benchmark is down 0:20:25.200 --> 0:20:27.439 two point one percent as well, down to dollar seventy 0:20:27.440 --> 0:20:31.679 four training at seventy nine seven Future is moving lower 0:20:31.720 --> 0:20:35.359 as well. SMP futures down forty three points down, futures 0:20:35.359 --> 0:20:38.240 down three fifty two, and Nasdaq futures are lower by 0:20:38.320 --> 0:20:41.080 ninety two points ten. Your treasury yield three point four 0:20:41.200 --> 0:20:44.399 nine percent. We'll check your top stories, local headlines, and 0:20:44.520 --> 0:20:47.960 a full check of markets straight ahead. First look at 0:20:47.960 --> 0:20:51.760 your Bloomberg weekend weather forecast. Low pressure developing south of 0:20:51.800 --> 0:20:54.879 the region responsible for the rainy, breezy weather today, are 0:20:54.880 --> 0:20:57.720 gonna reach forty five to fifty this afternoon. The rain ends, 0:20:57.720 --> 0:21:00.600 the showers during the evening actually starts the year later tonight. 0:21:00.680 --> 0:21:03.280 Loose near thirty five I pressure has headed our way 0:21:03.280 --> 0:21:05.760 for the upcoming weekend. We're partly to mostly sending breezy 0:21:05.800 --> 0:21:10.520 Tomorrow forty sunshine, Sunday highswee thirty five to forty um 0:21:10.640 --> 0:21:13.800 Rob Carolyn with your three day forecast on Bloomberg eleven 0:21:13.920 --> 0:21:21.040 three oh broadcasting live from the Bloomberg Interactive Broker Studio 0:21:21.160 --> 0:21:24.040 in New York, Bloomberg E Living Free on to Washington, 0:21:24.119 --> 0:21:27.560 d C, Bloomberg N one to Boston, Bloomberg one O 0:21:27.760 --> 0:21:31.240 six one to San Francisco, Bloomberg No. Sixty to the Country, 0:21:31.359 --> 0:21:33.960 Serrius XM to the one nine team, and around the 0:21:34.000 --> 0:21:38.119 globe the Bloomberg Business and Bloomberg Radio dot Com. This 0:21:38.400 --> 0:21:46.680 is Bloomberg Daybreak. It's coming up on six thirty on 0:21:46.800 --> 0:21:49.840 Wall Street. Good morning, I'm Nathan Hager and I'm Karen Moscow. 0:21:49.960 --> 0:21:52.400 We are just about three hours away from the open 0:21:52.400 --> 0:21:54.399 of US training. It's time for the five things that 0:21:54.480 --> 0:21:56.480 you need to notice start your day. Brought to you 0:21:56.560 --> 0:21:59.919