Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: Daybreak for Wednesday, November two. Coming up this hour, Wall
Speaker 1: Street awaits a highly anticipated speech from J. Powell. China
Speaker 1: appears to be taking a softer public stance against COVID restrictions,
Speaker 1: Congress moves to prevent a possible rail strike, and Disney
Speaker 1: says management and strategy changes had come at a cost.
Speaker 1: The suspicious powder was found in the New York Midtown hotel,
Speaker 1: whilst the same sex marriage bill had to the House
Speaker 1: after Senate passage. I'm Michael Barr. More ahead, I'm John
Speaker 1: Stans Went Sports. Easy win for the Knicks. Islanders lost
Speaker 1: St John's one in the US advances at the World Cup.
Speaker 1: That's all s train Ahead on Bloomberg Daybreak on Bloomberg
Speaker 1: Element three on New York, Bloomberg one, Washington, d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and
Speaker 1: Francisco Sirius x M one nineteen and around the world.
Speaker 1: Old on Bloomberg Radio Dot Carmen via the Bloombird Business app.
Speaker 1: Good morning, I'm John Tucker. I'm Nathan Hagar. Futures are
Speaker 1: moving higher this morning, we're coming up to five oh
Speaker 1: one on Wall Street, and we checked the markets every
Speaker 1: fifteen minutes throughout the trading day. On Bloomberg SMP futures
Speaker 1: are up eight points, Staff futures up forty four. Nastack
Speaker 1: futures are higher by thirty six points ten. Your treasury
Speaker 1: is up three thirty seconds the old three point seven
Speaker 1: three percent yield on the two year four point four
Speaker 1: seven percent. NIMEX Screwed is hired by two and a
Speaker 1: quarter percent, or a dollar seventy five at seventy nine
Speaker 1: dollars nine cents in barrel, and comic gold is up
Speaker 1: seven cents percent at seventeen seventounce Jehan and Nathan, we
Speaker 1: begin with a highly anticipated speech by the FED chair J. Powell.
Speaker 1: It takes place right in the middle of today's trading.
Speaker 1: Let's get a preview from Bloomberg Economics correspondent Michael McKee.
Speaker 1: When the FED chairman speaks, he usually moves markets, probably
Speaker 1: not this time, though investors have firmly priced in a
Speaker 1: half percentage point increase in the Fed's target rate, and
Speaker 1: none of the FED speakers in recent weeks has taken
Speaker 1: issue with that. What J Powell may want to do
Speaker 1: is set some guidelines for the new Fed guidance on
Speaker 1: rates coming December fourteen. There's general agreement among policymakers the
Speaker 1: ultimate level of the target rate will be higher than
Speaker 1: their last forecast of four point six percent. Markets now
Speaker 1: see it at five. Paul could offer guidance on whether
Speaker 1: that's about right and about how long it would take
Speaker 1: the Fed to get there. Michael McKee, Bloomberg Daybreak. All right,
Speaker 1: thanks Mike, and Bloomberg Radio and Television will bring you
Speaker 1: live coverage of pale speech this afternoon. You can catch
Speaker 1: that around one thirty pm. Ball Street Time. We'll have
Speaker 1: that speech. John. We continue to hear tough talk on
Speaker 1: interest rates from Fed officials. Let's get the latest live
Speaker 1: with Bloomberg. Steve Rappaport, Good morning, Steve, Good morning, Nathan,
Speaker 1: and John. St. Louis. Fed President Jim Bullard estimates an
Speaker 1: interest rate of at least four point nine percent would
Speaker 1: be needed to bring inflation down next year, but former
Speaker 1: New York Fed president and Bloomberg columnists Bill Dudley predicts
Speaker 1: an even higher rate in the short term. But I
Speaker 1: think once we get you know, five and a quarter,
Speaker 1: five and a half I think felt the relent. They'll
Speaker 1: just stid sit there and wait for that restrictive Madre
Speaker 1: policy to slow the commy down generate more slack in
Speaker 1: the layer market. The FETE is expected to announce another
Speaker 1: rate hike next month. Live in New York. I'm Steve Rappaport,
Speaker 1: Bloomberg day Break. All right, thanks Steven, and let's turn
Speaker 1: to the economic news out of Asia. Now. Data show
Speaker 1: COVID restrictions are continuing to hamper growth for the Chinese economy.
Speaker 1: Bloomberg Daybreak, Asia anchor Brian Curtis is more from Hong Kong.
Speaker 1: Tough COVID restrictions on consumers and businesses. Weight on activity.
Speaker 1: The official p m I felt to forty eight this month.
Speaker 1: That's the lowest reading since April and worst than the
Speaker 1: estimate of forty nine in a Bloomberg survey. The Non
Speaker 1: Manufacturing Index declined to forty six point seven from forty
Speaker 1: eight point seven in October. That was also lower than estimated.
Speaker 1: About a quarter of China's total GDP is said to
Speaker 1: be affected by COVID lockdowns. Brian Curtis, Bloomberg day Break, Brian, thanks,
Speaker 1: and we may see China starting to enact as softer
Speaker 1: stance on COVID restrictions. Stories of people who survived infections
Speaker 1: are popping up in state run media, something that had
Speaker 1: not been published previously. Local governments are now vowing to
Speaker 1: prioritize the public over COVID control. The People's Daily, a
Speaker 1: mouthpiece for the Communist Party, is urging citizens to take
Speaker 1: responsibility for their own health. It's the last training day
Speaker 1: of the month, and November was a good month for
Speaker 1: Chinese stocks listed in the US. There were up If
Speaker 1: that level holds today, it would be the best month ever.
Speaker 1: It's also been a good run for global bonds. They
Speaker 1: added a record two point a trillion dollars in market
Speaker 1: value in November. All right, let's turn to politics now.
Speaker 1: John Congress is moving fast to prevent a possible strike
Speaker 1: by rail workers. We get the details from Amy Morris
Speaker 1: in our Bloomberg newsroom in Washington. There will be two
Speaker 1: votes in the House today. The first vote is on
Speaker 1: a bill to avert the strike by passing the tentative agreement.
Speaker 1: The second would be an up or down vote on
Speaker 1: whether to add seven days of paid sickly railroads. Lawmakers
Speaker 1: are reluctantly intervening to avoid what would be a devastating
Speaker 1: blow to the nation's economy if the supply chain of fuel, food,
Speaker 1: and other critical goods were disrupted. Once it passes the House,
Speaker 1: the bill heads to the Senate for consideration. The deadline
Speaker 1: foreign agreement is December nine. In Washington, I'm any Morris,
Speaker 1: Bloomberg Daybreak, Yeah, thanks Samy. Also in Washington today, lawmakers
Speaker 1: are getting a visit from Apple's CEO, Tim Cook. Utility
Speaker 1: plans to meet with top Republican lawmakers, and Bloomberg's Ad
Speaker 1: Baxter has the story. The aim, according to Bloomberg sources,
Speaker 1: is to forge ties with GOP leadership ahead of the
Speaker 1: party's take over the House next year. He has scheduled
Speaker 1: sessions with Republican representatives Jim Jordan, darryl Issa and Kathy
Speaker 1: McMorris Rogers. Jordan and McMorris Rodgers are likely to share
Speaker 1: top committees overseeing the tech industry when the GOP does
Speaker 1: take over. The meetings were likely scheduled before the exchange
Speaker 1: of messages between Cook and Elon Musk a Twitter. Several
Speaker 1: conservative Republicans, including Jordan's, have been very critical of Apple,
Speaker 1: and Jordan has become a Musk supporter in San Francisco.
Speaker 1: I'm at Baxter Bloomberg Daybreak, all right, and thank you.
Speaker 1: And the shake up continues at Disney, with Bob Iger
Speaker 1: reinstated as CEO. The company now says changes to its
Speaker 1: management and strategy could come at a cost. We get
Speaker 1: that story from bloomberg S Doug Prisoner. Returning CEO, Bob
Speaker 1: Iger recently told staff he's considering changes to the company's
Speaker 1: management structure, and a regulatory filing shows plans may include
Speaker 1: modifying the way Disney releases and exhibits movies and TV shows,
Speaker 1: including the platforms for initial distribution. As a result, Disney says,
Speaker 1: once determined that changes could result in impairment charges, changes
Speaker 1: in consumer behavior favor online platforms. However, streaming services are
Speaker 1: struggling to turn a profit. Last year, Disney lost four
Speaker 1: billion dollars on its online TV businesses. In New York,
Speaker 1: I'm do Prisoner Bloomberg Daybreak, a right, thanks and ahead
Speaker 1: of the cashows on the Wall Street futures for now
Speaker 1: they are in the green, but also comes ahead of
Speaker 1: course of a Palace speech at one thirty Wall Street
Speaker 1: time down futures right now thirty two points higher SMP
Speaker 1: EMNI futures they're up about seven points, that's a rise
Speaker 1: of two tents of a percent, and the Nasdaq futures
Speaker 1: right now up thirty five points, that is up three
Speaker 1: tents of a percent. You're listening to Bloomberg Daybreak five
Speaker 1: Steven on Wall Street. Time to bring in Michael barrt
Speaker 1: with what else is going on to New York and
Speaker 1: around the world. John, thank you very much, sirah. New
Speaker 1: York City Mayor Eric Adams is directing police and city
Speaker 1: medics to be more aggressive about getting severely mentally ill
Speaker 1: people off the streets and subways and into treatment. Adams says,
Speaker 1: that's the case, even if it means involuntarily hospitalizing some
Speaker 1: people who refuse care. We can no longer deny the
Speaker 1: reality that untreated psychosis can be a cruel and all
Speaker 1: consuming condition that often eyes involuntary intervention. The mayor's announcement
Speaker 1: was condemned as wrongheaded by some civil rights groups and
Speaker 1: advocates for the homeless. The NYPD is searching for a
Speaker 1: man who snuck into the Park Hyat hotel in Manhattan
Speaker 1: and left behind a suspicious white powdery substance. Police say
Speaker 1: the parting guests dropped a hotel room key on the street,
Speaker 1: and someone snuck into the unoccupied hotel room and spent
Speaker 1: the night. A cleaning worker reported being sickened by what
Speaker 1: was described as a suspicious white substance left behind in
Speaker 1: the room. Assistant Chief James McCarthy of the NYPD Fighter
Speaker 1: Problems swapped various surfaces of the room, which initially indicated
Speaker 1: that it was there was a possible trace of amount
Speaker 1: of explosive substance. Assistant Chief McCarthy says the powder tested negative.
Speaker 1: The Senate has passed landmark bipartisan legislation to protect same
Speaker 1: sex marriages. The Respect for Marriage Act would ensure that
Speaker 1: same sex and interracial marriages are enshrined in federal law.
Speaker 1: Senate majority leader Chuck Schumer, What a great day. What
Speaker 1: a great day. The bill now goes to the House
Speaker 1: where it's expected to pass. A jury is convicted the
Speaker 1: head of a far right group of plotting the January
Speaker 1: sixth attack on the Capitol. Stewart Rhodes, leader of the
Speaker 1: right wing oath Keepers group, and one of the defendants,
Speaker 1: were convicted of seditious conspiracy. History was made in Jersey
Speaker 1: City as the first female deputy chief is now New
Speaker 1: Jersey's highest ranking professional female firefighter. Constance Cepela and three
Speaker 1: other deputy chiefs on the Jersey City Fire Department were
Speaker 1: promoted at a city Hall ceremony yesterday. The Christmas Tree
Speaker 1: lighting is tonight and Rockefeller Center last night, members of
Speaker 1: Congress gathered to light the Capital Christmas Tree. Global names
Speaker 1: twenty four hours a day on air and on Bloomberg Quicktake,
Speaker 1: powered by more than seven hundred journalist and analysts more
Speaker 1: than a hund twenty countries. And Michael barn this is
Speaker 1: Bloomberg jop. Michael, thank you. It's now five ten the
Speaker 1: wolfsbree timed out for the sports reporting broady by your
Speaker 1: Tri State outie Dealers. And here's John. Thanks John rare
Speaker 1: Laugher for the Knicks in Detroit forty point first quarter
Speaker 1: scored at least thirty and the other three they won
Speaker 1: by thirty one forty one ten. Julius Randall led the
Speaker 1: way thirty six points. They only played thirty one minutes
Speaker 1: in Dallas. Luca Donson's forty one point triple double massby
Speaker 1: Golden State depending NBA Champs just to and ten on
Speaker 1: the road. Islanders lost in Philadelphia three to one. St.
Speaker 1: John's easy win over l i U in the Red Storm.
Speaker 1: Now eight and oh looks like a long season. At
Speaker 1: Syracuse the Orange of three and four, they lost by
Speaker 1: twenty nine at Illinois. It's last weekend of the college
Speaker 1: football regular season. Georgia, Michigan, TCU, and USC are all
Speaker 1: playing conference championship games and if they win, they'll be
Speaker 1: the four teams in the playoff. Ohio State after the
Speaker 1: loss of Michigan drop from second to fifth. Giants getting
Speaker 1: healthy at the right time big games if they want
Speaker 1: to make the play out. Starting Sunday against Red Hot Wash.
Speaker 1: He did, and the Giants could be getting several starters
Speaker 1: back from injury and including rookie tackle Even Deal and
Speaker 1: rookie tight end Daniel Bellinger. As the US World Cup
Speaker 1: team gets ready for its games Saturday morning against the Netherlands,
Speaker 1: all eyes on Christian Pulistics. Pelvis suffered a contusion and
Speaker 1: a collision with the Iranian goalie as he scored the
Speaker 1: only goal in the win over on polistic post. Don't
Speaker 1: be don't worry, I'll be ready. As US teammate is
Speaker 1: unite must he brings a load to the team great
Speaker 1: guy off the field, very good, nice guy. And then
Speaker 1: on the field everyone everyone sees his brilliance. Um, he's
Speaker 1: the right time, in the right space. So I mean,
Speaker 1: um no, very very happy that he's my teammate. It's
Speaker 1: a young US team. Used to is the youngest. He
Speaker 1: was born in the Bronx. Yesterday was his twentieth birthday.
Speaker 1: John Stashward, Bloomberg Sports, John all right, John, thanks very much.
Speaker 1: Ahead of the camp shows on Wall Street, Dal Futures
Speaker 1: of forty one s and P Futures of eight the
Speaker 1: Nastic Future sporty points higher. You're listening to Bloomberg day Break.
Speaker 1: You have the sports workport brought to buy Audie. Don't
Speaker 1: let someone else drive off of the Audi model you've
Speaker 1: always wanted. Visit your local Tri state Audie dealer to
Speaker 1: get behind the wheel of years today, or visit Audie
Speaker 1: Offers dot com for more information. This is Bloomberg Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com, The Bloomberg Business at and at Bloomberg
Speaker 1: Quick Take. This is a Bloomberg Business lash. I'm Nathan Hagar.
Speaker 1: Future is redging higher. The dollar is slipping For a second,
Speaker 1: day as investors away to speech by Federal Reserve charman
Speaker 1: Jerome Powell for signals about the path of interest rate
Speaker 1: increases and assess prospects for China's economic reopening. We checked
Speaker 1: the markets for you every fifteen minutes during the trading
Speaker 1: day on Bloomberg. S and P futures right now are
Speaker 1: up seven points. Staff futures up thirty four Nasact futures
Speaker 1: are higher by thirty X points. Send your treasury is
Speaker 1: little change. The yield three point seven four percent yield
Speaker 1: on the two year four point four seven percent. Nim
Speaker 1: X screwed is up two percent or a dollar fifty
Speaker 1: nine at seven to nine dollars seventy nine cents of
Speaker 1: barrel comex gold is up six tenths per cent, or
Speaker 1: eleven dollars fifty cents at seventeen seventy ounced. The Euro
Speaker 1: one point zero three seven two against the dollar British
Speaker 1: pound one point two zero two five. The end is
Speaker 1: at one thirty eight point seven nine. That speech from
Speaker 1: Fed chairman Palace at one thirty Wall Street time. We
Speaker 1: will bring it to you live here on Bloomberg Radio.
Speaker 1: That's Bloomberg Business Flash. And now here's Michael Barner with
Speaker 1: more on what's going on around the world. What are you, Michael,
Speaker 1: Good morning, Nathan. China's ruling Communist party has vowed to
Speaker 1: resolutely crack down on infiltration and sabotage activities by hostile forces.
Speaker 1: The statement follows the largest street demonstrations in decades over
Speaker 1: strict anti virus restrictions. The House will vote next week
Speaker 1: on the same sex marriage bill. The Senate passed it
Speaker 1: yesterday with bipartisan support. In the NBA. The next one,
Speaker 1: the Warriors lost in the nh TELL, the Islanders lost
Speaker 1: the Bruins and Camp doubles one at the World Cup.
Speaker 1: The US now faces the Netherlands Saturday. After beating around
Speaker 1: one nil Global news twenty four hours a day on
Speaker 1: air and on Bloomberg Quickdake, powered by more than seven
Speaker 1: hundred journalist and analysts more than a hundred twenty countries.
Speaker 1: Michael bar this is Bloomberg, John, Michael, thank you. It
Speaker 1: is now five nineteen on Wall Street and we were
Speaker 1: lying for the Bloomberg Interact of Brokers Studios. This is
Speaker 1: Bloomberg Daybreak. But after years of a tough COVID zero policy,
Speaker 1: China seems to be softening its rhetoric. The seeming moderation
Speaker 1: comes after the zero tolerance policy sparked widespread social unrest.
Speaker 1: And for the latest let's hit the Beijing, we're joined
Speaker 1: by Bloomberg China government reporter Lucy lou Lucy, what is
Speaker 1: the official line from Beijing and the government? Hi, John, Yes,
Speaker 1: So we've seen definitely some easing in the rhetoric. They've
Speaker 1: been mentioning the dynamic COVID deero out less, especially during
Speaker 1: press conferences and even on some official readouts, and of
Speaker 1: course we've seen some some official media, state media put
Speaker 1: out these stories on how people have gone COVID and
Speaker 1: then recovered from it. So we're definitely seeing some sort
Speaker 1: of laying the path for a potential walk away from
Speaker 1: from this policy. And what has prompted that? Is it
Speaker 1: the slowdown in the Chinese economy or is it the protests? Yeah,
Speaker 1: that's a good question. It seems certainly to be, you know,
Speaker 1: everything all at once. But certainly we solved these sort
Speaker 1: of unprecedented protests this weekend. We've been out both nights
Speaker 1: on Monday and Tuesday and basically just solved very heavy
Speaker 1: police presents, but no protests. And and so we're waiting
Speaker 1: to see what will happen this weekend. But certainly that's
Speaker 1: been a huge catalyst. Um. I think you know, these
Speaker 1: protests have really come out spontaneously, and you know, many
Speaker 1: analysts are saying that they showed kind of a pensive
Speaker 1: anger that the party has potentially underestimated. Yeah, there raises
Speaker 1: another question though, are the protests you say it seems
Speaker 1: to have settled down a bit. Is that a response
Speaker 1: to a softer, potentially softer COVID policy or because of
Speaker 1: the show of forced by the government. Yeah. We also
Speaker 1: wonder if it's just because it's so cold right now.
Speaker 1: That's also a possibility. It's Yeah, it's been mineus eight
Speaker 1: minus tend both nights recently, um, and when we've gone
Speaker 1: out you can barely take your hands kind of out
Speaker 1: out of your pockets and type on the phone. So,
Speaker 1: but certainly the police presidents from what we've been hearing
Speaker 1: from protesters at the top of the list, Um, yesterday
Speaker 1: we saw sort of you know, fifty police cars, fyve
Speaker 1: buses station somewhere close to where people were discussing, and
Speaker 1: then a telegram group without a potential meeting place. So
Speaker 1: it's just been a extremely strong reaction from the governments,
Speaker 1: and uh, you know, protesters are quite quite anxious. Uh
Speaker 1: you know, what will happen if you know it's so
Speaker 1: called into the police station or what what? Yeah, what
Speaker 1: may happen next? Does a potentially softer COVID policy by
Speaker 1: the Chinese government mean a softer stance against protesters in
Speaker 1: the future in STA, Yeah, it definitely the crux of
Speaker 1: a lot of what the protesters are demanding from their
Speaker 1: chance is centered around COVID policies. Um. And so certainly
Speaker 1: seeing this easy and as some investors are saying, seeing
Speaker 1: this almost sort of at least there's an open dialogue,
Speaker 1: although um, you know that may be optimistic, but um,
Speaker 1: you seeing some of this easing is definitely going to soften, um,
Speaker 1: the impetus for the protests. Um. But of course we
Speaker 1: now also have sort of breaking news and with previous
Speaker 1: leader Jnathaning passing away, are wondering if perhaps, uh you know,
Speaker 1: any morning for him could be another reason that people
Speaker 1: may gather and um. So it's yeah, we're really watching
Speaker 1: to see what's going to happen because there's a lot
Speaker 1: of um, there's a lot of uncertainties right now. Yeah,
Speaker 1: as far as the current premier Sujing Ping. Has he
Speaker 1: lost faith or has he been weakened in any way
Speaker 1: by as a result of all this? Yeah, So I
Speaker 1: mean this going into his third term where he really
Speaker 1: just you know, had this incredible show of power and
Speaker 1: all of the people on the you know, the s
Speaker 1: Politar Standing Committee, the most powerful group of people were
Speaker 1: seen as his allies. Um, and then suddenly his signature
Speaker 1: policy really being you know tested in the streets and
Speaker 1: you know, in some very uh in some specific cases,
Speaker 1: people were calling for him to step down. So it's
Speaker 1: certainly a huge challenge for his third term. And um, yeah,
Speaker 1: and where we've already seen some strong reactions and authorities.
Speaker 1: So we'll see if this escalates or if people will
Speaker 1: be satisfied with sort of some easing back on COVID policies.
Speaker 1: And what's the you mentioned the death of man? What
Speaker 1: is his legacy? And I only thought about thirty seconds
Speaker 1: for you. Yes, so he uh, he of course is
Speaker 1: represented this era of a more open China. You know,
Speaker 1: he's this guy who he's danced with, you know, Laura Bush.
Speaker 1: He uh, you know slam the Hawaii and you know,
Speaker 1: played played all sorts of instruments. So, uh, there's a
Speaker 1: lot on social media now sort of just you know,
Speaker 1: remembering this era and comparing that to China today, which
Speaker 1: has gone down quite a different path, and so he
Speaker 1: has seen a lot of people being quite nostalgic. Yeah,
Speaker 1: Bloomberg China Government reporter Lucia Loup reporting from Beijing this morning,
Speaker 1: the latest on China. You're listening to Bloomberg Daybreak and
Speaker 1: ahead of the open on Wall Street this morning. Futures
Speaker 1: for now in the green, the down futures of thirty one,
Speaker 1: SMP futures of seven, and the nastack mmunion futures thirty
Speaker 1: eight points higher. You're listening to Bloomberg day Break, broadcasting
Speaker 1: live from the Bloomberg Interactive Broker Studio in New York,
Speaker 1: Bloomberg in Living Freedom, to Washington, d C, Bloomberg to Boston,
Speaker 1: Bloomberg one oh six one to San Francisco, Bloomberg nine
Speaker 1: six to the Country, Sirius XM TOO one nine and
Speaker 1: around the globe, the Bloomberg Business and Bloomberg Radio dot Com.
Speaker 1: This is Bloomberg Daybreak. Yeah, it's fine thirty on Wall Street.
Speaker 1: Good morning. I'm John Tucker, Nathan Hager Bloomberg Daybreak is
Speaker 1: brought to you by SEI Asset managers don't get results
Speaker 1: that are off the charts when their solutions are off
Speaker 1: the shelf. Learn how SEI is operating platform can turn
Speaker 1: infrastructure into a competitive advantage at se i C, dot Com,
Speaker 1: slash Tech. And we're awaiting remarks from fedg here J Pale.
Speaker 1: He speaks right in the middle of the trading day
Speaker 1: with remarks on the U S economy. Bloomberg's Michael McKee
Speaker 1: has more on what to expect which J. Powell. Do
Speaker 1: the markets get, Do they get the one who came
Speaker 1: out on November two at the end of the last
Speaker 1: FED meeting and was hawkish at least that's how his
Speaker 1: remarks were interpreted, Or do we get kind of the
Speaker 1: Fed speak that we got out of the minutes last week.
Speaker 1: Probably he's going to lay the predicate for a fifty
Speaker 1: basis point move. Bloomberg's Michael McKee says Pal will also
Speaker 1: discuss the labor market ahead of Friday's jobs report, and
Speaker 1: Bloomberg Radio and TV will bring you J. Pal's full
Speaker 1: speech live that's around one thirty pm Wall Street time.
Speaker 1: At the same time, John, we continue to hear hawks
Speaker 1: remarks coming out of the Fed. Bloomberg Steve Rappaport joins
Speaker 1: US Live with that good morning, Good morning, Nathan and
Speaker 1: John St. Louis. FED President Jim Bullard says even higher
Speaker 1: rates are to further combat inflation, and he estimates a
Speaker 1: rate of at least four point nine percent in the
Speaker 1: short term. But a former FED colleague thinks that's not enough.
Speaker 1: Former New York Fed president and Bloomberg opinion columnist Bill
Speaker 1: Dudley predicts the Central Bank will pause and assess the
Speaker 1: situation once interest rates reached five and a quarter to
Speaker 1: five and a half percent. Live in New York, I'm
Speaker 1: Steve Rappaport, Bloomberg Day Break, a right Steve, Thanks and
Speaker 1: turning overseas now, we may start to see a softening
Speaker 1: of the COVID stance by the Chinese government. Stories of
Speaker 1: people who survived in factions are popping up in state
Speaker 1: run media, and local governments are vowing to prioritize the
Speaker 1: public over COVID control. Let's been one of the best
Speaker 1: months ever for Chinese stocks listed in the US, but
Speaker 1: virus restrictions continue to hurt the Chinese economy. The latest
Speaker 1: pm I data came in at their lowest reading since April.
Speaker 1: The Non Manufacturing index also dipped. It's believed about a
Speaker 1: quarter of China's total GDP is affected by COVID lockdown.
Speaker 1: Stand back here in the US Congress moving to prevent
Speaker 1: a possible rail workers strike, Let send up Minority whip,
Speaker 1: John Tune of out the coda discussed President Biden urging
Speaker 1: Congress to intervene. It's something that the president needs to own.
Speaker 1: The Presidential Emergency Board, which he created, came up with
Speaker 1: a series of recommendations, and that is what everybody sort
Speaker 1: has agreed upon, with the exception of one union. So
Speaker 1: we would like to see them resolve it without having
Speaker 1: Congress have to act. That sentim Minority with John thud
Speaker 1: He make the comments on Bloomberg Sound Dot, which you
Speaker 1: can get week days at five pm Wall Street Time
Speaker 1: on Bloomberg Radio. Futures moving higher, John SMP futures are
Speaker 1: up nine points, straight ahead, your latest local headlines and
Speaker 1: a check of sports. This is Bloomberg. Thanks Nathan, five
Speaker 1: thirty three on Wall Street and it's time to bring
Speaker 1: in Michael Barr with more on what else is going
Speaker 1: on to New York and around the world. John thank
Speaker 1: you very much, sir. New York City plans to hospitalize
Speaker 1: more mentally old people, even involuntarily. Mayor Eric Adams says
Speaker 1: it is a push to remove them from the streets
Speaker 1: and subways. If their mental illnesses cousin someone to be
Speaker 1: unsheltered and a danger to themselves, we have a moral
Speaker 1: obligation to help them get the treatment and care they need.
Speaker 1: Mayor Adams says they will focus on action, care and prevention. However,
Speaker 1: the mayor's announcement was condemned as wrongheaded by some civil
Speaker 1: rights groups and advocates for the homeless. There was a
Speaker 1: strange hotel bomb scare in New York City yesterday. Police
Speaker 1: say someone snuck into an unoccupied hotel room at the
Speaker 1: Park Hyat and spent the night. Then a cleaning worker
Speaker 1: reported being sickened by what was described as a suspicious
Speaker 1: white substance left behind in the room. In my p
Speaker 1: D Assistant Chief James McCarthy, the family had five keys
Speaker 1: and they believed one of them must have dropped and
Speaker 1: he picked it up them. Assistant Chief McCarthy says there
Speaker 1: was a brief evacuation of a floor of the hotel. However,
Speaker 1: the NYPD says all tests were negative of the powder.
Speaker 1: Police now searching for the hotel intruder. The Senate pass
Speaker 1: legislation to enshrined federal protection for same sex marriages with
Speaker 1: a bipartisan vote. Senate majority leader Chuck Schumer said the
Speaker 1: issue is personal for him, as his daughter and her
Speaker 1: wife are expecting her baby. That child will now grow
Speaker 1: up in a more accepting, inclusive, and loving world, a
Speaker 1: world that will honor their mother's marriage and give it
Speaker 1: the dignity it deserves. The bill heads back to the
Speaker 1: House where it is expected to pass. Both Keepers founder
Speaker 1: Stuart Rhodes has been convicted of seditious conspiracy for a
Speaker 1: violent plot to overturn President Joe Biden's election during the
Speaker 1: January sixth Capital Ryan Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Take, powered by
Speaker 1: more than seven hundred journalist and analysts are more than
Speaker 1: a hundred twenty countries, and Michael Barr and this is Bloomberg. John, Michael,
Speaker 1: thank you. It's now a thirty five of Wall Street
Speaker 1: and time for the Bloomberg Sports Report, being brought you
Speaker 1: by Audi. Here's John. Thanks John, just with a knicks
Speaker 1: needed after a couple of tough losses at home a
Speaker 1: trip to play one of the NBA's worst teams, Pest
Speaker 1: Pistons are five and eighteen. Nicks had an easy time
Speaker 1: in Detroit one forty two one ten. Julius Randall scored
Speaker 1: thirty six. Nicks continue to be better on the road
Speaker 1: than at the guard. Islanders lost in Philadelphia three to
Speaker 1: once St. John's bat l i U by twenty seven.
Speaker 1: The Red Storm off to an eight and oh start.
Speaker 1: The College Football Playoff Committee has its top four as Georgia, Michigan, TCU,
Speaker 1: and USC all four play Conferdence Championship games this weekend.
Speaker 1: Encouraging news on the Giants injury front. As many as
Speaker 1: six Giants who've been out could be returning first Sunday's
Speaker 1: home game with Washington. The US advancing at the World
Speaker 1: Cup and three games only allowed one goal that was
Speaker 1: a penalty kig one nil over on on the Christian
Speaker 1: Polistic goal where he got injured in a collision with
Speaker 1: the goal. He didn't play the second half. It's a
Speaker 1: pelvic contusion. Pallistic post said that he'll be ready to
Speaker 1: play Saturday's Round of sixteen game against the Netherlands. US
Speaker 1: has only reached the quarterfinals once since nineteen thirty. As
Speaker 1: Tiger Woods withdrew from this weekend's World Zero Golf in
Speaker 1: the Bahamas with a foot injury, he detailed his plans
Speaker 1: for the rest of his golfing career. Goal is to
Speaker 1: play just to make your championships and maybe one or
Speaker 1: two more. That's it. I mean, that's physically, that's all
Speaker 1: I can do. And I told you that guy's you know,
Speaker 1: the beginning of this year too. I mean that's I
Speaker 1: don't have much left in this leg, so um garrel
Speaker 1: for the biggest ones and hopefully, you know, lightning catches
Speaker 1: on the bottle and I'm up there in contention with
Speaker 1: chance to win, and hopefully I remember how to do that.
Speaker 1: Tiger was able to play in three of the four majors.
Speaker 1: In two John Stashal were Bloomberg Sports John all right, John,
Speaker 1: thanks very much, five thirties seven on Wall Street, and
Speaker 1: that means it's time for the Trying State Business Report.
Speaker 1: Here with that Bloomberg's Jones Dohaker. New York City is
Speaker 1: the US city hosting the most visitors as the world
Speaker 1: recovers from the pandemic. City monitor sites an American Express
Speaker 1: count of tourists last year as seeing New York host
Speaker 1: four point six million international tourists and nearly thirty nine
Speaker 1: and a half million domestic ones. Golden Goose is opening
Speaker 1: an unusual store, and soho It's circular women's where Daily
Speaker 1: says it will be the first Forward store in New York.
Speaker 1: Forward represents the company's long term sustainability plan, and New
Speaker 1: Jersey is getting ready for a major American milestone, the
Speaker 1: two hundred fiftieth anniversary of the signing of the Declaration
Speaker 1: of Independence in the state is planning to restore ten
Speaker 1: revolutionary war sites. The Federal American Rescue Plan is kicking
Speaker 1: in twenty five million dollars for the improvements, and j
Speaker 1: Spotlight says among the ten sites Washington Crossing State Park
Speaker 1: and the Proprietary House in perth Amboy. That's the Bloomberg
Speaker 1: Try State Business Report on Joan Donneger. All right, thanks Joan,
Speaker 1: five thirty eight on Wall Street. Bloomberg Radio is on
Speaker 1: the air from San Francisco to New York, London to
Speaker 1: Hong Kong. Hand let's teck in now with their global
Speaker 1: news team for some of the top stories heard on
Speaker 1: Earth three hundred affiliate radio stations around the world. I'm
Speaker 1: Steve Podas kN K and X in Los Angeles. We're
Speaker 1: talking about the city about to enact retail workers scheduling liards.
Speaker 1: I'm Corny Donahoe on ktr H in Houston. Deep discounts
Speaker 1: drive a record number of holiday weekend shoppers. I'm Gina
Speaker 1: Servettian for w e B b M in Chicago. I'm
Speaker 1: talking about US lawmakers discussing a compromise that would allow
Speaker 1: Boeling to certify its final two seven thirty seven Max
Speaker 1: models without an expensive redesign. I'm Jeff Bullinger and on
Speaker 1: wy O D in Miami. I'm reporting on cruise lines
Speaker 1: rolling out their typical New Year deals a month earlier
Speaker 1: than usual. I'm John Donneker telling w w J listeners
Speaker 1: in Detroit how GM could be test lit to an
Speaker 1: electric vehicle's future. And those are some of the stories
Speaker 1: are twenty seven hundred Bloomberg journalists and analysts are working
Speaker 1: on this morning around the world. It's five thirty nine
Speaker 1: on Wall Street. The following is an editorial from Bloomberg Opinion.
Speaker 1: This editorial was written by the Bloomberg Editorial Board. This
Speaker 1: past weekend, protesters across China took to the streets to
Speaker 1: demand an end to the government's straconian COVID zero policies. Remarkably,
Speaker 1: some called for President shi jing Ping himself to step down,
Speaker 1: Although heavy policing has discouraged further demonstrations. The fact that
Speaker 1: factory workers, students and urban professionals united around a single
Speaker 1: demand should worry authorities. Chinese leader's top priority right now
Speaker 1: should be reopening safely. That means officials must present a
Speaker 1: more realistic picture of the coronavirus's risks, and she will
Speaker 1: need to set the tone if the shift is to
Speaker 1: be convincing. At last month's Communist Party Congress, she was
Speaker 1: hailed as the country's new helmsman, an honorific previously reserved
Speaker 1: for mouse dung. He should now show that he knows
Speaker 1: how to change course. This editorial was written by the
Speaker 1: Bloomberg Editorial Board. For more Bloomberg opinion, plea has got
Speaker 1: a Bloomberg dot Com slash opinion or O P I
Speaker 1: N go on the Bloomberg terminal. This has been Bloomberg
Speaker 1: Opinion and Bloomberg Opinion editorials can be heard every weekday
Speaker 1: at this time terminal constomers can read more at O
Speaker 1: p I n GO DAL futures of forty eight points.
Speaker 1: You're listening to Bloomberg Daybreak, the sports report brought to
Speaker 1: buy out of you. Don't let someone else drive off
Speaker 1: of the autie model you've always wanted. Visit your local
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Speaker 1: yours today, or visit autie Offers dot com for more information, markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com, The Bloomberg Business at and at Bloomberg Victake,
Speaker 1: this is a Bloomberg business lash Nathan Hagar. Futures are
Speaker 1: moving higher as investors await remarks this afternoon from Federal
Speaker 1: Reserve Chairman Jerome Powell, just a couple of weeks before
Speaker 1: the Central Bank's latest policy decision. We check the markets
Speaker 1: every fifteen minutes during the trading day on Bloomberg. Right now,
Speaker 1: SMP futures are up seven points, STAFF futures up thirty,
Speaker 1: NASTIC futures are higher by forty two points. Docks in
Speaker 1: Germany is up a half percent, the cat in Paris
Speaker 1: is higher by seven tenths percent, and the footscen in
Speaker 1: London is up six tenths percent ten. Your treasury is
Speaker 1: up for thirty seconds, the yield three point seven two percent,
Speaker 1: yield on the two year four point four seven percent.
Speaker 1: Nim X screws moving higher, up two point one percent,
Speaker 1: or a dollar sixty five at seventy nine dollars eighty
Speaker 1: five cents a barrel. Comic gold is up a half
Speaker 1: percent or nine dollar sixty cents at seventeen seventy three
Speaker 1: thirty announced. The euro one point zero three six five
Speaker 1: against the dollar, and the end is at one thirty
Speaker 1: eight point nine eight. That's a Bloomberg business flash. Now
Speaker 1: here's Michael Bark with Laura on what's going on around
Speaker 1: the world. Michael Nathan, thank you very much. The Senate
Speaker 1: passed legislation providing federal protection for same sex marriages. All Democrats,
Speaker 1: President and twelve Republicans supported the measure. Congress is moving
Speaker 1: swiftly to prevent a looming US rail workers strike that
Speaker 1: would be a devastating blow to the nation's economy of
Speaker 1: transportation of food, fuel, and other critical goods are disrupted.
Speaker 1: The House is expected to act first today. In the
Speaker 1: NBA the next one, the Warriors lost in the NHL,
Speaker 1: The Islanders lost the Bruins and Capitol's one at the
Speaker 1: World Cup. The US now faces the Netherlands Saturday, after
Speaker 1: beating around one nil Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Tank, powered by
Speaker 1: more than twenty seven hundred journalist and analysted more than
Speaker 1: a hundred twenty countries. I'm Michael bar This is Bloomberg,
Speaker 1: John Michael, thank you. It is five forty eight on
Speaker 1: Wall Street and we are live for the Bloomberg e
Speaker 1: inter ant to brokers, studios, well investors of course, waiting
Speaker 1: for the speech by the Fenderal Reserve chairs, your own Powell,
Speaker 1: for any signals about the half of interest rate increases.
Speaker 1: Let's get you set up for the trading day head
Speaker 1: right now, and I'm happy to say we're joined by
Speaker 1: Ben Laidler, the global market strategist at Eat tour O.
Speaker 1: Thanks for being here, Ben, Hey, would you be very
Speaker 1: surprised if it's a devilsh speech by Pal today, Yes,
Speaker 1: the world, I'm fully expecting the opposite. I think he's
Speaker 1: going to try and deliver a reality check to markets
Speaker 1: that rate heights are you know, there's still a lot
Speaker 1: more to come and the rates aren't coming down anytime soon,
Speaker 1: but I think markets are expecting that, and it's a
Speaker 1: real question as where the markets are sort of listening right,
Speaker 1: I mean, over the last I guess since October, markets
Speaker 1: have really been fighting the Fed. Here. We've got higher
Speaker 1: stock markets, lower bond yields a week or dollar. The
Speaker 1: FED doesn't like that, but it's a question of what
Speaker 1: they can really do to stop it at this point.
Speaker 1: Why is there such a disconnect between the Fed speak
Speaker 1: that we've heard and what the market is anticipating. I
Speaker 1: think the market is just looking ahead here. We're all
Speaker 1: looking at the same data. The FED clearly won't like
Speaker 1: sort of markets prematurely in their thinking. I'm doing a
Speaker 1: lot of the work they've done by tightening finance, your
Speaker 1: conditions to cool inflation. But remember what all data depending
Speaker 1: at this point investors and the FED and markets have
Speaker 1: Ever since the October inflation numbers sort of started coming down.
Speaker 1: Markets have been looking at this date, and not only
Speaker 1: in the US but globally. I mean, just today we
Speaker 1: had a peak in European inflation. We had downside surprise
Speaker 1: in Australia overnight. This is not just in the US.
Speaker 1: This is very much I think a global narrative that
Speaker 1: inflation has peaked and central banks are beginning to ease
Speaker 1: off on on the right high pickccelerator. Does j Pow
Speaker 1: today have to put the risk assets in his target?
Speaker 1: I think he's certainly going to try, and this is
Speaker 1: his last chance, remember, because the FED goes into a
Speaker 1: blackout period on Saturday right the way through to the
Speaker 1: December fourteen meetings. He's going to try. But remember also
Speaker 1: the caveat here. We have a quite a lot of
Speaker 1: data coming out between now and then which will really
Speaker 1: help decide what happens on December fourteen. We've got the
Speaker 1: JAW number today, We've got non fun payrolls on on Friday,
Speaker 1: and we have funny enough to the inflation number, you know,
Speaker 1: the day before the FED has to announce the next decision.
Speaker 1: So um as to say, we're all data dependent at
Speaker 1: this point, and you know a lot could change to
Speaker 1: me now and then given all that, what do you
Speaker 1: tell clients to do? I think the lower markets is
Speaker 1: in I think this is going to be a gradual,
Speaker 1: sort of U shaped recovery. Um I think you know
Speaker 1: those sort of sticky bits of inflation that the FED
Speaker 1: is most worried about housing on wages are going to
Speaker 1: take some time to sort of ease here. So I
Speaker 1: think there's this sort of two steps forward once they're back.
Speaker 1: But again, I do think we've seen the low we're getting,
Speaker 1: We've seen the higher inflation we're getting, visibility on the
Speaker 1: top of the Fed interest rate cycle. I think these
Speaker 1: are all positives. But again, you know, it's it's it's
Speaker 1: fairly early in the game. Be invested, but be reasonably
Speaker 1: defensive given that in particular sectors, would technology be a
Speaker 1: place to be, given the fact that you think that
Speaker 1: the rate cycle may have turned. So I think some
Speaker 1: of these sort of classic defensive sort of high dividend yields, UM,
Speaker 1: you know, consumer study palls, healthcare are the things that
Speaker 1: have really worked this year. I think those remain pretty
Speaker 1: good places, uh, you know, to be I mean there's
Speaker 1: still a lot of risks out there. Again, we're still
Speaker 1: very early I think in this um move towards you know,
Speaker 1: the peak of the FED cycle and lower inflation. But
Speaker 1: you know, the further this goes on, the more inflation
Speaker 1: comes down and begins to de risk um some of
Speaker 1: these issues. I think the more you look to you know, technology,
Speaker 1: small cap some of these more sort of interest rate
Speaker 1: sensitive and economic sensitive assets being always a pleasure. We
Speaker 1: appreciate it. Ben Leasler, Global market strategist, joining us this
Speaker 1: morning at Each two or A Nathan John, Thank you.
Speaker 1: It's fifty three on Wall Street and now it's time
Speaker 1: for a Bloomberg Law report. Let's get to the legal
Speaker 1: stories we're watching this morning. From Bloomberg's Jeff Balinger, New
Speaker 1: gags from the Hurdle Revenue Service gives the clean energy
Speaker 1: industry more details on how developers and investors can meet
Speaker 1: some of the requirements of the Tax and Climate law.
Speaker 1: Proposed class action accuses Kraft Hims of deceptively labeling its
Speaker 1: Caprice Son juice drinks as all natural when they contain
Speaker 1: undisclosed harmful substances. A Texas company is suing Sam's Club
Speaker 1: for allegedly infringing on patented technology for issuing email receipts
Speaker 1: on retail purchases. Bloomberg Law everything you need, all on
Speaker 1: one legal research platform, including guidance analysis and Bloomberg Market Intelligence.
Speaker 1: Find out more at Bloomberg Law dot com. Now to
Speaker 1: another legal story we're watching at Oral Arguments the Supreme
Speaker 1: Court appeared divided over President Joe Biden's efforts to shift
Speaker 1: the government's deportation priorities to the most dangerous undocumented immigrants,
Speaker 1: in those who had recently crossed the border. Texas and
Speaker 1: Louisiana contend that the Biden administration's approach violates federal immigration law,
Speaker 1: but the Department of Homeland Security says it does not
Speaker 1: have the resources to detain and deport all eleven million
Speaker 1: undocumented people estimated to be in the country. This is
Speaker 1: the twenty nine federal lawsuit brought by Texas to challenge
Speaker 1: Biden administration policies. For more, Bloomberg's June Grosso speaks to
Speaker 1: immigration law expert le On Fresco of Partner at Holland
Speaker 1: and Night. Another issue, perhaps the issue, is that the
Speaker 1: law says that some immigrants quote shall be taken into
Speaker 1: custody or removed. Correct. There's a law called iron a
Speaker 1: fiction to that says that there's a specific type of
Speaker 1: foreign national if you commit certain types of crime, you
Speaker 1: have to be detained mandatorily and removed from the country.
Speaker 1: And Baby Coney Baron and Neil Morrison tours saying to
Speaker 1: the Department of Justice. Well, look, maybe you have this
Speaker 1: broad power for undocumented person that overstayed their visa or
Speaker 1: that crossed the border unlawfully ten years ago, but that's
Speaker 1: different than when you literally know of somebody who's one
Speaker 1: of the foreign nationals who has a criminal conviction. What
Speaker 1: gives you the authority to have a memo that the
Speaker 1: prioritizes within that category when Congress clearly said prioritize people
Speaker 1: in that category. And so there I can see a
Speaker 1: compromise decision, which strikes maybe that's part of the memo,
Speaker 1: but says that the administration has broad dis present with
Speaker 1: regards to people for the border crossers and visa overspace
Speaker 1: to figure out what groups of those people to prioritize.
Speaker 1: Because it seemed that particularly Chief Justice Roberts was saying that,
Speaker 1: you know, we should follow the law. We don't decide
Speaker 1: how the law is going to be implemented, but then
Speaker 1: brought up the fact that Congress has never provided the
Speaker 1: funds to arrest and deport the estimated eleven million undocumented immigrants.
Speaker 1: I think there was a very interesting philosophical debate that
Speaker 1: Justice Roberts was saying, which is, look, at the end
Speaker 1: of the day, there isn't probably funding to enforce any law.
Speaker 1: But the point is that's a different question than whether
Speaker 1: the government can exempt people. So you know, you say
Speaker 1: we're gonna exempt this group of offenders from past prosecution
Speaker 1: or this group of labor law offenders from labor law prosectents.
Speaker 1: Sure you don't have enough on each to prosecute every
Speaker 1: labor law by later, but that's a different thing than
Speaker 1: writing a memo for people. And so what Justice Roberts
Speaker 1: says is, look and we just say there's a world
Speaker 1: where you can't write a memo, but you just do
Speaker 1: your best within the limited constraints that you have. And
Speaker 1: I think that is an important discussion. But then it
Speaker 1: gets balanced with the question of Okay, let's say that's true.
Speaker 1: What now what does the agency do? Now? Do you
Speaker 1: actually let it sort of run as this rudderless agency
Speaker 1: without any priority? And I think that's where the thing
Speaker 1: falls apart. That's Leon Fresco, partner in Holland and Knight,
Speaker 1: speaking with Bloomberg's June Grosso. Catch more of that interview,
Speaker 1: plus analysis of the latest legal news, by subscribing to
Speaker 1: the Bloomberg Law podcast or downloading the show at Bloomberg
Speaker 1: dot com slash podcasts. Attorneys can find exceptional legal research
Speaker 1: and business development tools at Bloomberg Law dot com and
Speaker 1: on the Bloomberg terminal at b law go. Futures are
Speaker 1: moving a little bit higher ahead of the open and
Speaker 1: ahead of a Chairman Powell speech this afternoon. SMP futures
Speaker 1: are up six points down futures up twelve. Danace deck
Speaker 1: futures higher by thirty nine points. The tenure treasuries of
Speaker 1: five thirty seconds, the yield three point seven two percent.
Speaker 1: Yield on the two year four point four six percent.
Speaker 1: Imex screwed up two point three percent at seventy nine
Speaker 1: dollars n cents of barrel. Bloomberg day Break continues. This
Speaker 1: is Bloomberg