WEBVTT - Bloomberg Daybreak: November 30, 2022 - Hour 1 (Radio) 0:00:03.840 --> 0:00:07.160 Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 0:00:07.200 --> 0:00:11.440 Daybreak for Wednesday, November two. Coming up this hour, Wall 0:00:11.480 --> 0:00:15.000 Street awaits a highly anticipated speech from J. Powell. China 0:00:15.040 --> 0:00:18.640 appears to be taking a softer public stance against COVID restrictions, 0:00:18.760 --> 0:00:22.400 Congress moves to prevent a possible rail strike, and Disney 0:00:22.440 --> 0:00:25.440 says management and strategy changes had come at a cost. 0:00:25.840 --> 0:00:28.960 The suspicious powder was found in the New York Midtown hotel, 0:00:29.280 --> 0:00:31.640 whilst the same sex marriage bill had to the House 0:00:31.680 --> 0:00:35.680 after Senate passage. I'm Michael Barr. More ahead, I'm John 0:00:35.720 --> 0:00:38.600 Stans Went Sports. Easy win for the Knicks. Islanders lost 0:00:38.640 --> 0:00:41.720 St John's one in the US advances at the World Cup. 0:00:44.520 --> 0:00:48.080 That's all s train Ahead on Bloomberg Daybreak on Bloomberg 0:00:48.080 --> 0:00:51.960 Element three on New York, Bloomberg one, Washington, d C, 0:00:52.440 --> 0:00:56.000 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.120 --> 0:01:00.000 Francisco Sirius x M one nineteen and around the world. 0:01:00.000 --> 0:01:03.680 Old on Bloomberg Radio Dot Carmen via the Bloombird Business app. 0:01:07.920 --> 0:01:10.680 Good morning, I'm John Tucker. I'm Nathan Hagar. Futures are 0:01:10.680 --> 0:01:12.720 moving higher this morning, we're coming up to five oh 0:01:12.760 --> 0:01:14.880 one on Wall Street, and we checked the markets every 0:01:14.880 --> 0:01:18.440 fifteen minutes throughout the trading day. On Bloomberg SMP futures 0:01:18.440 --> 0:01:21.120 are up eight points, Staff futures up forty four. Nastack 0:01:21.160 --> 0:01:24.240 futures are higher by thirty six points ten. Your treasury 0:01:24.280 --> 0:01:26.560 is up three thirty seconds the old three point seven 0:01:26.600 --> 0:01:29.160 three percent yield on the two year four point four 0:01:29.280 --> 0:01:31.840 seven percent. NIMEX Screwed is hired by two and a 0:01:31.920 --> 0:01:34.319 quarter percent, or a dollar seventy five at seventy nine 0:01:34.360 --> 0:01:37.320 dollars nine cents in barrel, and comic gold is up 0:01:37.319 --> 0:01:41.280 seven cents percent at seventeen seventounce Jehan and Nathan, we 0:01:41.400 --> 0:01:44.959 begin with a highly anticipated speech by the FED chair J. Powell. 0:01:45.360 --> 0:01:48.120 It takes place right in the middle of today's trading. 0:01:48.560 --> 0:01:52.360 Let's get a preview from Bloomberg Economics correspondent Michael McKee. 0:01:52.800 --> 0:01:56.280 When the FED chairman speaks, he usually moves markets, probably 0:01:56.320 --> 0:01:59.080 not this time, though investors have firmly priced in a 0:01:59.080 --> 0:02:01.840 half percentage point increase in the Fed's target rate, and 0:02:01.880 --> 0:02:04.440 none of the FED speakers in recent weeks has taken 0:02:04.440 --> 0:02:07.440 issue with that. What J Powell may want to do 0:02:07.520 --> 0:02:10.120 is set some guidelines for the new Fed guidance on 0:02:10.320 --> 0:02:15.000 rates coming December fourteen. There's general agreement among policymakers the 0:02:15.080 --> 0:02:17.520 ultimate level of the target rate will be higher than 0:02:17.520 --> 0:02:21.440 their last forecast of four point six percent. Markets now 0:02:21.480 --> 0:02:25.240 see it at five. Paul could offer guidance on whether 0:02:25.320 --> 0:02:27.760 that's about right and about how long it would take 0:02:27.840 --> 0:02:31.240 the Fed to get there. Michael McKee, Bloomberg Daybreak. All right, 0:02:31.280 --> 0:02:33.799 thanks Mike, and Bloomberg Radio and Television will bring you 0:02:33.880 --> 0:02:36.400 live coverage of pale speech this afternoon. You can catch 0:02:36.480 --> 0:02:39.040 that around one thirty pm. Ball Street Time. We'll have 0:02:39.160 --> 0:02:41.320 that speech. John. We continue to hear tough talk on 0:02:41.360 --> 0:02:44.079 interest rates from Fed officials. Let's get the latest live 0:02:44.080 --> 0:02:47.160 with Bloomberg. Steve Rappaport, Good morning, Steve, Good morning, Nathan, 0:02:47.200 --> 0:02:50.240 and John. St. Louis. Fed President Jim Bullard estimates an 0:02:50.240 --> 0:02:52.799 interest rate of at least four point nine percent would 0:02:52.840 --> 0:02:55.560 be needed to bring inflation down next year, but former 0:02:55.560 --> 0:02:58.680 New York Fed president and Bloomberg columnists Bill Dudley predicts 0:02:58.720 --> 0:03:00.880 an even higher rate in the short term. But I 0:03:00.880 --> 0:03:02.680 think once we get you know, five and a quarter, 0:03:02.720 --> 0:03:05.320 five and a half I think felt the relent. They'll 0:03:05.320 --> 0:03:08.120 just stid sit there and wait for that restrictive Madre 0:03:08.240 --> 0:03:12.000 policy to slow the commy down generate more slack in 0:03:12.000 --> 0:03:14.760 the layer market. The FETE is expected to announce another 0:03:14.840 --> 0:03:17.720 rate hike next month. Live in New York. I'm Steve Rappaport, 0:03:17.720 --> 0:03:20.000 Bloomberg day Break. All right, thanks Steven, and let's turn 0:03:20.000 --> 0:03:23.040 to the economic news out of Asia. Now. Data show 0:03:23.120 --> 0:03:27.040 COVID restrictions are continuing to hamper growth for the Chinese economy. 0:03:27.440 --> 0:03:31.280 Bloomberg Daybreak, Asia anchor Brian Curtis is more from Hong Kong. 0:03:31.680 --> 0:03:35.680 Tough COVID restrictions on consumers and businesses. Weight on activity. 0:03:35.840 --> 0:03:38.360 The official p m I felt to forty eight this month. 0:03:38.600 --> 0:03:41.160 That's the lowest reading since April and worst than the 0:03:41.280 --> 0:03:44.080 estimate of forty nine in a Bloomberg survey. The Non 0:03:44.080 --> 0:03:47.800 Manufacturing Index declined to forty six point seven from forty 0:03:47.840 --> 0:03:52.000 eight point seven in October. That was also lower than estimated. 0:03:52.280 --> 0:03:55.080 About a quarter of China's total GDP is said to 0:03:55.080 --> 0:04:00.000 be affected by COVID lockdowns. Brian Curtis, Bloomberg day Break, Brian, thanks, 0:04:00.080 --> 0:04:02.680 and we may see China starting to enact as softer 0:04:02.920 --> 0:04:06.960 stance on COVID restrictions. Stories of people who survived infections 0:04:06.960 --> 0:04:09.520 are popping up in state run media, something that had 0:04:09.560 --> 0:04:12.800 not been published previously. Local governments are now vowing to 0:04:12.880 --> 0:04:16.479 prioritize the public over COVID control. The People's Daily, a 0:04:16.480 --> 0:04:19.360 mouthpiece for the Communist Party, is urging citizens to take 0:04:19.400 --> 0:04:22.880 responsibility for their own health. It's the last training day 0:04:22.920 --> 0:04:25.240 of the month, and November was a good month for 0:04:25.400 --> 0:04:29.160 Chinese stocks listed in the US. There were up If 0:04:29.160 --> 0:04:32.280 that level holds today, it would be the best month ever. 0:04:32.680 --> 0:04:35.160 It's also been a good run for global bonds. They 0:04:35.200 --> 0:04:37.839 added a record two point a trillion dollars in market 0:04:37.880 --> 0:04:40.360 value in November. All right, let's turn to politics now. 0:04:40.480 --> 0:04:43.720 John Congress is moving fast to prevent a possible strike 0:04:43.800 --> 0:04:46.760 by rail workers. We get the details from Amy Morris 0:04:46.760 --> 0:04:50.240 in our Bloomberg newsroom in Washington. There will be two 0:04:50.320 --> 0:04:52.400 votes in the House today. The first vote is on 0:04:52.440 --> 0:04:55.560 a bill to avert the strike by passing the tentative agreement. 0:04:55.800 --> 0:04:57.800 The second would be an up or down vote on 0:04:57.839 --> 0:05:01.560 whether to add seven days of paid sickly railroads. Lawmakers 0:05:01.640 --> 0:05:04.880 are reluctantly intervening to avoid what would be a devastating 0:05:04.880 --> 0:05:08.440 blow to the nation's economy if the supply chain of fuel, food, 0:05:08.480 --> 0:05:12.039 and other critical goods were disrupted. Once it passes the House, 0:05:12.080 --> 0:05:15.000 the bill heads to the Senate for consideration. The deadline 0:05:15.000 --> 0:05:18.400 foreign agreement is December nine. In Washington, I'm any Morris, 0:05:18.440 --> 0:05:22.480 Bloomberg Daybreak, Yeah, thanks Samy. Also in Washington today, lawmakers 0:05:22.480 --> 0:05:26.480 are getting a visit from Apple's CEO, Tim Cook. Utility 0:05:26.560 --> 0:05:30.080 plans to meet with top Republican lawmakers, and Bloomberg's Ad 0:05:30.080 --> 0:05:33.520 Baxter has the story. The aim, according to Bloomberg sources, 0:05:33.720 --> 0:05:37.080 is to forge ties with GOP leadership ahead of the 0:05:37.080 --> 0:05:39.800 party's take over the House next year. He has scheduled 0:05:39.839 --> 0:05:43.839 sessions with Republican representatives Jim Jordan, darryl Issa and Kathy 0:05:43.880 --> 0:05:47.440 McMorris Rogers. Jordan and McMorris Rodgers are likely to share 0:05:47.520 --> 0:05:50.720 top committees overseeing the tech industry when the GOP does 0:05:50.800 --> 0:05:53.839 take over. The meetings were likely scheduled before the exchange 0:05:53.839 --> 0:05:57.080 of messages between Cook and Elon Musk a Twitter. Several 0:05:57.080 --> 0:06:01.159 conservative Republicans, including Jordan's, have been very critical of Apple, 0:06:01.279 --> 0:06:04.880 and Jordan has become a Musk supporter in San Francisco. 0:06:04.920 --> 0:06:07.480 I'm at Baxter Bloomberg Daybreak, all right, and thank you. 0:06:07.480 --> 0:06:10.520 And the shake up continues at Disney, with Bob Iger 0:06:10.600 --> 0:06:14.039 reinstated as CEO. The company now says changes to its 0:06:14.040 --> 0:06:16.800 management and strategy could come at a cost. We get 0:06:16.839 --> 0:06:20.080 that story from bloomberg S Doug Prisoner. Returning CEO, Bob 0:06:20.120 --> 0:06:23.600 Iger recently told staff he's considering changes to the company's 0:06:23.640 --> 0:06:27.400 management structure, and a regulatory filing shows plans may include 0:06:27.600 --> 0:06:31.680 modifying the way Disney releases and exhibits movies and TV shows, 0:06:31.880 --> 0:06:36.080 including the platforms for initial distribution. As a result, Disney says, 0:06:36.200 --> 0:06:40.320 once determined that changes could result in impairment charges, changes 0:06:40.320 --> 0:06:44.640 in consumer behavior favor online platforms. However, streaming services are 0:06:44.640 --> 0:06:47.680 struggling to turn a profit. Last year, Disney lost four 0:06:47.720 --> 0:06:50.960 billion dollars on its online TV businesses. In New York, 0:06:50.960 --> 0:06:53.919 I'm do Prisoner Bloomberg Daybreak, a right, thanks and ahead 0:06:53.920 --> 0:06:56.360 of the cashows on the Wall Street futures for now 0:06:56.480 --> 0:06:59.279 they are in the green, but also comes ahead of 0:06:59.320 --> 0:07:02.040 course of a Palace speech at one thirty Wall Street 0:07:02.080 --> 0:07:05.840 time down futures right now thirty two points higher SMP 0:07:05.920 --> 0:07:09.120 EMNI futures they're up about seven points, that's a rise 0:07:09.120 --> 0:07:12.000 of two tents of a percent, and the Nasdaq futures 0:07:12.080 --> 0:07:14.680 right now up thirty five points, that is up three 0:07:14.680 --> 0:07:24.080 tents of a percent. You're listening to Bloomberg Daybreak five 0:07:24.280 --> 0:07:26.400 Steven on Wall Street. Time to bring in Michael barrt 0:07:26.440 --> 0:07:28.240 with what else is going on to New York and 0:07:28.880 --> 0:07:31.280 around the world. John, thank you very much, sirah. New 0:07:31.360 --> 0:07:34.560 York City Mayor Eric Adams is directing police and city 0:07:34.600 --> 0:07:38.120 medics to be more aggressive about getting severely mentally ill 0:07:38.240 --> 0:07:42.600 people off the streets and subways and into treatment. Adams says, 0:07:43.000 --> 0:07:47.040 that's the case, even if it means involuntarily hospitalizing some 0:07:47.120 --> 0:07:51.080 people who refuse care. We can no longer deny the 0:07:51.160 --> 0:07:57.160 reality that untreated psychosis can be a cruel and all 0:07:57.360 --> 0:08:04.200 consuming condition that often eyes involuntary intervention. The mayor's announcement 0:08:04.280 --> 0:08:08.240 was condemned as wrongheaded by some civil rights groups and 0:08:08.280 --> 0:08:11.560 advocates for the homeless. The NYPD is searching for a 0:08:11.600 --> 0:08:14.800 man who snuck into the Park Hyat hotel in Manhattan 0:08:15.200 --> 0:08:19.440 and left behind a suspicious white powdery substance. Police say 0:08:19.480 --> 0:08:22.640 the parting guests dropped a hotel room key on the street, 0:08:22.920 --> 0:08:27.200 and someone snuck into the unoccupied hotel room and spent 0:08:27.280 --> 0:08:30.440 the night. A cleaning worker reported being sickened by what 0:08:30.600 --> 0:08:34.000 was described as a suspicious white substance left behind in 0:08:34.040 --> 0:08:38.679 the room. Assistant Chief James McCarthy of the NYPD Fighter 0:08:38.760 --> 0:08:42.479 Problems swapped various surfaces of the room, which initially indicated 0:08:42.720 --> 0:08:45.360 that it was there was a possible trace of amount 0:08:45.360 --> 0:08:50.920 of explosive substance. Assistant Chief McCarthy says the powder tested negative. 0:08:51.520 --> 0:08:55.400 The Senate has passed landmark bipartisan legislation to protect same 0:08:55.440 --> 0:08:58.880 sex marriages. The Respect for Marriage Act would ensure that 0:08:59.080 --> 0:09:03.000 same sex and interracial marriages are enshrined in federal law. 0:09:03.440 --> 0:09:06.800 Senate majority leader Chuck Schumer, What a great day. What 0:09:07.000 --> 0:09:11.160 a great day. The bill now goes to the House 0:09:11.200 --> 0:09:14.400 where it's expected to pass. A jury is convicted the 0:09:14.440 --> 0:09:17.640 head of a far right group of plotting the January 0:09:17.800 --> 0:09:21.080 sixth attack on the Capitol. Stewart Rhodes, leader of the 0:09:21.160 --> 0:09:24.240 right wing oath Keepers group, and one of the defendants, 0:09:24.240 --> 0:09:28.640 were convicted of seditious conspiracy. History was made in Jersey 0:09:28.760 --> 0:09:32.280 City as the first female deputy chief is now New 0:09:32.360 --> 0:09:37.640 Jersey's highest ranking professional female firefighter. Constance Cepela and three 0:09:37.679 --> 0:09:40.600 other deputy chiefs on the Jersey City Fire Department were 0:09:40.600 --> 0:09:45.720 promoted at a city Hall ceremony yesterday. The Christmas Tree 0:09:45.800 --> 0:09:48.520 lighting is tonight and Rockefeller Center last night, members of 0:09:48.520 --> 0:09:51.520 Congress gathered to light the Capital Christmas Tree. Global names 0:09:51.559 --> 0:09:54.439 twenty four hours a day on air and on Bloomberg Quicktake, 0:09:54.720 --> 0:09:57.800 powered by more than seven hundred journalist and analysts more 0:09:57.840 --> 0:10:00.079 than a hund twenty countries. And Michael barn this is 0:10:00.120 --> 0:10:06.559 Bloomberg jop. Michael, thank you. It's now five ten the 0:10:06.880 --> 0:10:09.959 wolfsbree timed out for the sports reporting broady by your 0:10:09.960 --> 0:10:13.960 Tri State outie Dealers. And here's John. Thanks John rare 0:10:14.040 --> 0:10:17.160 Laugher for the Knicks in Detroit forty point first quarter 0:10:17.240 --> 0:10:19.079 scored at least thirty and the other three they won 0:10:19.120 --> 0:10:22.079 by thirty one forty one ten. Julius Randall led the 0:10:22.080 --> 0:10:25.040 way thirty six points. They only played thirty one minutes 0:10:25.080 --> 0:10:28.840 in Dallas. Luca Donson's forty one point triple double massby 0:10:28.920 --> 0:10:31.240 Golden State depending NBA Champs just to and ten on 0:10:31.280 --> 0:10:34.160 the road. Islanders lost in Philadelphia three to one. St. 0:10:34.200 --> 0:10:36.600 John's easy win over l i U in the Red Storm. 0:10:36.640 --> 0:10:39.080 Now eight and oh looks like a long season. At 0:10:39.120 --> 0:10:41.400 Syracuse the Orange of three and four, they lost by 0:10:41.400 --> 0:10:44.360 twenty nine at Illinois. It's last weekend of the college 0:10:44.360 --> 0:10:48.880 football regular season. Georgia, Michigan, TCU, and USC are all 0:10:48.880 --> 0:10:51.920 playing conference championship games and if they win, they'll be 0:10:51.960 --> 0:10:54.040 the four teams in the playoff. Ohio State after the 0:10:54.120 --> 0:10:57.560 loss of Michigan drop from second to fifth. Giants getting 0:10:57.559 --> 0:10:59.480 healthy at the right time big games if they want 0:10:59.480 --> 0:11:02.040 to make the play out. Starting Sunday against Red Hot Wash. 0:11:02.120 --> 0:11:04.160 He did, and the Giants could be getting several starters 0:11:04.200 --> 0:11:07.400 back from injury and including rookie tackle Even Deal and 0:11:07.480 --> 0:11:10.720 rookie tight end Daniel Bellinger. As the US World Cup 0:11:10.720 --> 0:11:14.360 team gets ready for its games Saturday morning against the Netherlands, 0:11:14.360 --> 0:11:18.480 all eyes on Christian Pulistics. Pelvis suffered a contusion and 0:11:18.559 --> 0:11:20.840 a collision with the Iranian goalie as he scored the 0:11:20.840 --> 0:11:24.000 only goal in the win over on polistic post. Don't 0:11:24.000 --> 0:11:26.640 be don't worry, I'll be ready. As US teammate is 0:11:26.840 --> 0:11:29.480 unite must he brings a load to the team great 0:11:29.480 --> 0:11:31.880 guy off the field, very good, nice guy. And then 0:11:31.920 --> 0:11:35.280 on the field everyone everyone sees his brilliance. Um, he's 0:11:35.320 --> 0:11:38.480 the right time, in the right space. So I mean, 0:11:39.120 --> 0:11:42.360 um no, very very happy that he's my teammate. It's 0:11:42.400 --> 0:11:44.840 a young US team. Used to is the youngest. He 0:11:44.880 --> 0:11:47.880 was born in the Bronx. Yesterday was his twentieth birthday. 0:11:48.160 --> 0:11:51.160 John Stashward, Bloomberg Sports, John all right, John, thanks very much. 0:11:51.280 --> 0:11:53.679 Ahead of the camp shows on Wall Street, Dal Futures 0:11:53.679 --> 0:11:56.320 of forty one s and P Futures of eight the 0:11:56.400 --> 0:12:02.560 Nastic Future sporty points higher. You're listening to Bloomberg day Break. 0:12:05.960 --> 0:12:08.160 You have the sports workport brought to buy Audie. Don't 0:12:08.240 --> 0:12:10.319 let someone else drive off of the Audi model you've 0:12:10.320 --> 0:12:12.840 always wanted. Visit your local Tri state Audie dealer to 0:12:12.880 --> 0:12:15.400 get behind the wheel of years today, or visit Audie 0:12:15.400 --> 0:12:22.640 Offers dot com for more information. This is Bloomberg Markets, 0:12:22.720 --> 0:12:25.800 headlines and breaking news twenty four hours a day at 0:12:25.800 --> 0:12:29.199 Bloomberg dot com, The Bloomberg Business at and at Bloomberg 0:12:29.280 --> 0:12:38.600 Quick Take. This is a Bloomberg Business lash. I'm Nathan Hagar. 0:12:38.679 --> 0:12:41.280 Future is redging higher. The dollar is slipping For a second, 0:12:41.360 --> 0:12:43.959 day as investors away to speech by Federal Reserve charman 0:12:44.040 --> 0:12:46.200 Jerome Powell for signals about the path of interest rate 0:12:46.240 --> 0:12:50.680 increases and assess prospects for China's economic reopening. We checked 0:12:50.720 --> 0:12:52.880 the markets for you every fifteen minutes during the trading 0:12:52.960 --> 0:12:55.480 day on Bloomberg. S and P futures right now are 0:12:55.559 --> 0:12:58.760 up seven points. Staff futures up thirty four Nasact futures 0:12:58.760 --> 0:13:01.520 are higher by thirty X points. Send your treasury is 0:13:01.559 --> 0:13:03.960 little change. The yield three point seven four percent yield 0:13:03.960 --> 0:13:06.760 on the two year four point four seven percent. Nim 0:13:06.880 --> 0:13:08.680 X screwed is up two percent or a dollar fifty 0:13:08.760 --> 0:13:10.880 nine at seven to nine dollars seventy nine cents of 0:13:10.920 --> 0:13:13.319 barrel comex gold is up six tenths per cent, or 0:13:13.360 --> 0:13:16.920 eleven dollars fifty cents at seventeen seventy ounced. The Euro 0:13:17.040 --> 0:13:19.360 one point zero three seven two against the dollar British 0:13:19.360 --> 0:13:21.760 pound one point two zero two five. The end is 0:13:21.760 --> 0:13:24.440 at one thirty eight point seven nine. That speech from 0:13:24.480 --> 0:13:27.120 Fed chairman Palace at one thirty Wall Street time. We 0:13:27.160 --> 0:13:29.920 will bring it to you live here on Bloomberg Radio. 0:13:29.960 --> 0:13:32.840 That's Bloomberg Business Flash. And now here's Michael Barner with 0:13:32.920 --> 0:13:34.880 more on what's going on around the world. What are you, Michael, 0:13:35.080 --> 0:13:38.240 Good morning, Nathan. China's ruling Communist party has vowed to 0:13:38.440 --> 0:13:43.840 resolutely crack down on infiltration and sabotage activities by hostile forces. 0:13:44.280 --> 0:13:48.000 The statement follows the largest street demonstrations in decades over 0:13:48.080 --> 0:13:51.840 strict anti virus restrictions. The House will vote next week 0:13:51.880 --> 0:13:54.640 on the same sex marriage bill. The Senate passed it 0:13:54.760 --> 0:13:58.360 yesterday with bipartisan support. In the NBA. The next one, 0:13:58.400 --> 0:14:01.400 the Warriors lost in the nh TELL, the Islanders lost 0:14:01.600 --> 0:14:04.400 the Bruins and Camp doubles one at the World Cup. 0:14:04.440 --> 0:14:07.679 The US now faces the Netherlands Saturday. After beating around 0:14:08.040 --> 0:14:10.920 one nil Global news twenty four hours a day on 0:14:11.080 --> 0:14:14.800 air and on Bloomberg Quickdake, powered by more than seven 0:14:14.840 --> 0:14:17.480 hundred journalist and analysts more than a hundred twenty countries. 0:14:17.840 --> 0:14:20.560 Michael bar this is Bloomberg, John, Michael, thank you. It 0:14:20.840 --> 0:14:23.480 is now five nineteen on Wall Street and we were 0:14:23.560 --> 0:14:26.440 lying for the Bloomberg Interact of Brokers Studios. This is 0:14:26.440 --> 0:14:30.600 Bloomberg Daybreak. But after years of a tough COVID zero policy, 0:14:30.880 --> 0:14:34.920 China seems to be softening its rhetoric. The seeming moderation 0:14:35.000 --> 0:14:39.200 comes after the zero tolerance policy sparked widespread social unrest. 0:14:39.600 --> 0:14:42.240 And for the latest let's hit the Beijing, we're joined 0:14:42.240 --> 0:14:46.760 by Bloomberg China government reporter Lucy lou Lucy, what is 0:14:46.840 --> 0:14:53.040 the official line from Beijing and the government? Hi, John, Yes, 0:14:53.160 --> 0:14:57.600 So we've seen definitely some easing in the rhetoric. They've 0:14:57.640 --> 0:15:01.040 been mentioning the dynamic COVID deero out less, especially during 0:15:01.040 --> 0:15:05.080 press conferences and even on some official readouts, and of 0:15:05.120 --> 0:15:09.880 course we've seen some some official media, state media put 0:15:09.920 --> 0:15:12.280 out these stories on how people have gone COVID and 0:15:12.280 --> 0:15:15.600 then recovered from it. So we're definitely seeing some sort 0:15:15.640 --> 0:15:20.240 of laying the path for a potential walk away from 0:15:20.240 --> 0:15:23.840 from this policy. And what has prompted that? Is it 0:15:23.920 --> 0:15:29.680 the slowdown in the Chinese economy or is it the protests? Yeah, 0:15:29.680 --> 0:15:32.920 that's a good question. It seems certainly to be, you know, 0:15:33.000 --> 0:15:35.800 everything all at once. But certainly we solved these sort 0:15:35.800 --> 0:15:40.280 of unprecedented protests this weekend. We've been out both nights 0:15:40.280 --> 0:15:42.840 on Monday and Tuesday and basically just solved very heavy 0:15:42.840 --> 0:15:47.200 police presents, but no protests. And and so we're waiting 0:15:47.200 --> 0:15:49.600 to see what will happen this weekend. But certainly that's 0:15:49.600 --> 0:15:52.520 been a huge catalyst. Um. I think you know, these 0:15:52.520 --> 0:15:55.760 protests have really come out spontaneously, and you know, many 0:15:55.800 --> 0:15:59.480 analysts are saying that they showed kind of a pensive 0:15:59.520 --> 0:16:03.280 anger that the party has potentially underestimated. Yeah, there raises 0:16:03.320 --> 0:16:06.280 another question though, are the protests you say it seems 0:16:06.320 --> 0:16:09.200 to have settled down a bit. Is that a response 0:16:09.240 --> 0:16:13.840 to a softer, potentially softer COVID policy or because of 0:16:13.920 --> 0:16:18.480 the show of forced by the government. Yeah. We also 0:16:18.560 --> 0:16:21.000 wonder if it's just because it's so cold right now. 0:16:21.920 --> 0:16:25.880 That's also a possibility. It's Yeah, it's been mineus eight 0:16:25.960 --> 0:16:29.520 minus tend both nights recently, um, and when we've gone 0:16:29.520 --> 0:16:33.120 out you can barely take your hands kind of out 0:16:33.240 --> 0:16:36.320 out of your pockets and type on the phone. So, 0:16:36.880 --> 0:16:40.880 but certainly the police presidents from what we've been hearing 0:16:40.920 --> 0:16:44.160 from protesters at the top of the list, Um, yesterday 0:16:44.200 --> 0:16:47.240 we saw sort of you know, fifty police cars, fyve 0:16:47.320 --> 0:16:51.480 buses station somewhere close to where people were discussing, and 0:16:51.560 --> 0:16:55.520 then a telegram group without a potential meeting place. So 0:16:55.840 --> 0:17:00.600 it's just been a extremely strong reaction from the governments, 0:17:00.680 --> 0:17:05.199 and uh, you know, protesters are quite quite anxious. Uh 0:17:05.680 --> 0:17:08.440 you know, what will happen if you know it's so 0:17:08.600 --> 0:17:11.600 called into the police station or what what? Yeah, what 0:17:11.680 --> 0:17:15.640 may happen next? Does a potentially softer COVID policy by 0:17:15.640 --> 0:17:20.720 the Chinese government mean a softer stance against protesters in 0:17:20.800 --> 0:17:26.399 the future in STA, Yeah, it definitely the crux of 0:17:26.440 --> 0:17:29.080 a lot of what the protesters are demanding from their 0:17:29.160 --> 0:17:33.359 chance is centered around COVID policies. Um. And so certainly 0:17:33.400 --> 0:17:37.000 seeing this easy and as some investors are saying, seeing 0:17:37.040 --> 0:17:40.560 this almost sort of at least there's an open dialogue, 0:17:40.720 --> 0:17:44.760 although um, you know that may be optimistic, but um, 0:17:45.200 --> 0:17:49.119 you seeing some of this easing is definitely going to soften, um, 0:17:49.240 --> 0:17:52.560 the impetus for the protests. Um. But of course we 0:17:52.680 --> 0:17:57.800 now also have sort of breaking news and with previous 0:17:57.840 --> 0:18:02.879 leader Jnathaning passing away, are wondering if perhaps, uh you know, 0:18:02.920 --> 0:18:05.320 any morning for him could be another reason that people 0:18:05.359 --> 0:18:09.199 may gather and um. So it's yeah, we're really watching 0:18:09.240 --> 0:18:11.640 to see what's going to happen because there's a lot 0:18:11.680 --> 0:18:15.000 of um, there's a lot of uncertainties right now. Yeah, 0:18:15.000 --> 0:18:17.879 as far as the current premier Sujing Ping. Has he 0:18:18.080 --> 0:18:21.440 lost faith or has he been weakened in any way 0:18:21.480 --> 0:18:26.199 by as a result of all this? Yeah, So I 0:18:26.240 --> 0:18:29.080 mean this going into his third term where he really 0:18:29.160 --> 0:18:33.240 just you know, had this incredible show of power and 0:18:33.480 --> 0:18:35.879 all of the people on the you know, the s 0:18:36.119 --> 0:18:40.080 Politar Standing Committee, the most powerful group of people were 0:18:40.080 --> 0:18:44.160 seen as his allies. Um, and then suddenly his signature 0:18:44.200 --> 0:18:48.879 policy really being you know tested in the streets and 0:18:49.520 --> 0:18:53.520 you know, in some very uh in some specific cases, 0:18:53.560 --> 0:18:56.800 people were calling for him to step down. So it's 0:18:56.840 --> 0:19:02.640 certainly a huge challenge for his third term. And um, yeah, 0:19:02.680 --> 0:19:06.600 and where we've already seen some strong reactions and authorities. 0:19:06.600 --> 0:19:10.360 So we'll see if this escalates or if people will 0:19:10.400 --> 0:19:13.720 be satisfied with sort of some easing back on COVID policies. 0:19:13.960 --> 0:19:16.960 And what's the you mentioned the death of man? What 0:19:17.119 --> 0:19:19.879 is his legacy? And I only thought about thirty seconds 0:19:19.920 --> 0:19:25.040 for you. Yes, so he uh, he of course is 0:19:25.680 --> 0:19:28.560 represented this era of a more open China. You know, 0:19:28.680 --> 0:19:32.240 he's this guy who he's danced with, you know, Laura Bush. 0:19:32.640 --> 0:19:36.359 He uh, you know slam the Hawaii and you know, 0:19:36.520 --> 0:19:39.840 played played all sorts of instruments. So, uh, there's a 0:19:39.840 --> 0:19:42.159 lot on social media now sort of just you know, 0:19:42.359 --> 0:19:45.880 remembering this era and comparing that to China today, which 0:19:45.920 --> 0:19:49.080 has gone down quite a different path, and so he 0:19:49.200 --> 0:19:51.880 has seen a lot of people being quite nostalgic. Yeah, 0:19:52.160 --> 0:19:57.359 Bloomberg China Government reporter Lucia Loup reporting from Beijing this morning, 0:19:57.480 --> 0:20:06.960 the latest on China. You're listening to Bloomberg Daybreak and 0:20:07.080 --> 0:20:09.320 ahead of the open on Wall Street this morning. Futures 0:20:09.320 --> 0:20:11.680 for now in the green, the down futures of thirty one, 0:20:11.840 --> 0:20:15.560 SMP futures of seven, and the nastack mmunion futures thirty 0:20:15.600 --> 0:20:22.920 eight points higher. You're listening to Bloomberg day Break, broadcasting 0:20:23.000 --> 0:20:26.720 live from the Bloomberg Interactive Broker Studio in New York, 0:20:26.800 --> 0:20:31.480 Bloomberg in Living Freedom, to Washington, d C, Bloomberg to Boston, 0:20:31.600 --> 0:20:35.000 Bloomberg one oh six one to San Francisco, Bloomberg nine 0:20:35.080 --> 0:20:38.359 six to the Country, Sirius XM TOO one nine and 0:20:38.400 --> 0:20:42.680 around the globe, the Bloomberg Business and Bloomberg Radio dot Com. 0:20:42.760 --> 0:20:51.760 This is Bloomberg Daybreak. Yeah, it's fine thirty on Wall Street. 0:20:51.760 --> 0:20:54.800 Good morning. I'm John Tucker, Nathan Hager Bloomberg Daybreak is 0:20:54.840 --> 0:20:57.560 brought to you by SEI Asset managers don't get results 0:20:57.560 --> 0:20:59.360 that are off the charts when their solutions are off 0:20:59.359 --> 0:21:02.120 the shelf. Learn how SEI is operating platform can turn 0:21:02.160 --> 0:21:05.840 infrastructure into a competitive advantage at se i C, dot Com, 0:21:06.160 --> 0:21:11.240 slash Tech. And we're awaiting remarks from fedg here J Pale. 0:21:11.359 --> 0:21:13.560 He speaks right in the middle of the trading day 0:21:13.600 --> 0:21:16.680 with remarks on the U S economy. Bloomberg's Michael McKee 0:21:16.680 --> 0:21:20.240 has more on what to expect which J. Powell. Do 0:21:20.400 --> 0:21:22.480 the markets get, Do they get the one who came 0:21:22.520 --> 0:21:24.720 out on November two at the end of the last 0:21:24.720 --> 0:21:27.040 FED meeting and was hawkish at least that's how his 0:21:27.119 --> 0:21:29.800 remarks were interpreted, Or do we get kind of the 0:21:29.800 --> 0:21:32.720 Fed speak that we got out of the minutes last week. 0:21:32.840 --> 0:21:35.080 Probably he's going to lay the predicate for a fifty 0:21:35.119 --> 0:21:38.280 basis point move. Bloomberg's Michael McKee says Pal will also 0:21:38.359 --> 0:21:41.480 discuss the labor market ahead of Friday's jobs report, and 0:21:41.560 --> 0:21:44.399 Bloomberg Radio and TV will bring you J. Pal's full 0:21:44.480 --> 0:21:47.480 speech live that's around one thirty pm Wall Street time. 0:21:47.720 --> 0:21:49.679 At the same time, John, we continue to hear hawks 0:21:49.760 --> 0:21:52.880 remarks coming out of the Fed. Bloomberg Steve Rappaport joins 0:21:52.920 --> 0:21:55.399 US Live with that good morning, Good morning, Nathan and 0:21:55.520 --> 0:21:58.919 John St. Louis. FED President Jim Bullard says even higher 0:21:59.040 --> 0:22:02.320 rates are to further combat inflation, and he estimates a 0:22:02.400 --> 0:22:04.399 rate of at least four point nine percent in the 0:22:04.440 --> 0:22:07.440 short term. But a former FED colleague thinks that's not enough. 0:22:07.680 --> 0:22:10.760 Former New York Fed president and Bloomberg opinion columnist Bill 0:22:10.800 --> 0:22:13.240 Dudley predicts the Central Bank will pause and assess the 0:22:13.280 --> 0:22:16.320 situation once interest rates reached five and a quarter to 0:22:16.400 --> 0:22:18.600 five and a half percent. Live in New York, I'm 0:22:18.640 --> 0:22:21.240 Steve Rappaport, Bloomberg Day Break, a right Steve, Thanks and 0:22:21.280 --> 0:22:24.840 turning overseas now, we may start to see a softening 0:22:24.920 --> 0:22:28.080 of the COVID stance by the Chinese government. Stories of 0:22:28.119 --> 0:22:30.640 people who survived in factions are popping up in state 0:22:30.720 --> 0:22:34.040 run media, and local governments are vowing to prioritize the 0:22:34.119 --> 0:22:36.960 public over COVID control. Let's been one of the best 0:22:36.960 --> 0:22:39.760 months ever for Chinese stocks listed in the US, but 0:22:39.920 --> 0:22:43.240 virus restrictions continue to hurt the Chinese economy. The latest 0:22:43.240 --> 0:22:46.320 pm I data came in at their lowest reading since April. 0:22:46.359 --> 0:22:49.600 The Non Manufacturing index also dipped. It's believed about a 0:22:49.680 --> 0:22:53.080 quarter of China's total GDP is affected by COVID lockdown. 0:22:53.119 --> 0:22:55.560 Stand back here in the US Congress moving to prevent 0:22:55.640 --> 0:22:59.200 a possible rail workers strike, Let send up Minority whip, 0:22:59.280 --> 0:23:02.520 John Tune of out the coda discussed President Biden urging 0:23:02.600 --> 0:23:06.200 Congress to intervene. It's something that the president needs to own. 0:23:06.240 --> 0:23:08.320 The Presidential Emergency Board, which he created, came up with 0:23:08.320 --> 0:23:12.040 a series of recommendations, and that is what everybody sort 0:23:12.040 --> 0:23:14.479