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Speaker 1: Live from the Bloomberg Interactive Berger Studios. This is Bloomberg

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Speaker 1: day Break for Tuesday, December seven two. Coming up, the

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Speaker 1: shower stocks and China gain as the country continues to

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Speaker 1: roll back COVID measures. That's something to lift us futures

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Speaker 1: as we close out the last trading week of the year,

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Speaker 1: and President Biden declares an emergency in the state of

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Speaker 1: New York because of the winter storm. New York GOP

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Speaker 1: representative Alex Santos admits he lied about its job experience.

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Speaker 1: Plus Democrats called Texas Governor Rabbits actions on migrants of

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Speaker 1: dangerous stunt. I'm Michael Barr more ahead, I'm John stash

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Speaker 1: Our in sports Red Hot, and that's been at nine

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Speaker 1: wins in a row with a win in Cleveland. Mike

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Speaker 1: White is back as the Jets starting quarterback. That's all's

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Speaker 1: trendyhead on Bloomberg Daybreak on Bloomberg Eliving Free on New York,

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Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,

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Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nine

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Speaker 1: team and around the world. Then Bloomberg Radio dot Com

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Speaker 1: and via the Bloomberg Business app. Good morning. I'm John

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Speaker 1: Tucker and I'm Karen Moscow and US stock index futures

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Speaker 1: are on the rise this morning, and we checked the

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Speaker 1: markets all day long here on bloomberg SMP futures up

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Speaker 1: twenty seven points or seven tenths of upper cent, DEAF

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Speaker 1: futures up six tens of upper cent or two hundred

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Speaker 1: eleven points. And as the futures up six tensive upper

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Speaker 1: cent er seventy points ten, your treasury up one thirty second.

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Speaker 1: You have three point seven four percent. They yield on

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Speaker 1: the two year at four point three three percent. NIMEX

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Speaker 1: screwed oil is up six ten percent or forty nine

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Speaker 1: cents at eighty dollars five cents of barrel comex s

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Speaker 1: called up seven tens per cent or eleven dollars seventy

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Speaker 1: cents at eighteen fifteen eighty announced. The euro one point

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Speaker 1: oh six five two against the dollar, the yen one

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Speaker 1: thirty three point one nine, John and Karen, As we

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Speaker 1: wait for stocks to begin trading here in the US

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Speaker 1: on this short and trading week, Equities in Asia are higher.

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Speaker 1: China continues to roll back COVID measures and that is

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Speaker 1: boosting sentiment in the region. Let's get the recap from

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Speaker 1: Bloomberg Daybreak Asia anchor Brian Curtis. In Hong Kong, Asian

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Speaker 1: stocks powered higher on the China news of ditching quarantine rules.

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Speaker 1: Traveling consumer good stocks jumped. It was a risk on day,

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Speaker 1: with US and European equity futures also higher and the

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Speaker 1: dollar lower. Investors also embraced the cooling of a key

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Speaker 1: inflation measure in the United States. Oil and gold also bounced.

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Speaker 1: Indexes of US, Asian and global stocks still remained down

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Speaker 1: about this year. It's the worst annual performance since two

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Speaker 1: thousand and eight. In Hong Kong, Brian Turtis Bloomberg day Break,

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Speaker 1: Ry Brian, thank you all. And geopolitical news. US China

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Speaker 1: tensions are in focus again. The US is criticizing Beijing's

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Speaker 1: military drills near Taiwan this week. The National Security Council

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Speaker 1: called the exercises provocative and said it will continue to

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Speaker 1: help Taiwan defend itself. Last week, US lawmakers agree to

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Speaker 1: a spending bill that included two billion dollars and weapons

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Speaker 1: funding for Taiwan. And back here in New York, Karen

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Speaker 1: nasty bout of winter weather has resulted in twenty eight

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Speaker 1: deaths and crippled parts of the state, and now President

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Speaker 1: Biden has approved a disaster declaration in New York. Let's

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Speaker 1: get the story this morning from Bloomberg's Michael Barr. The

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Speaker 1: Buffalo area got at least four ft of snow, and

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Speaker 1: moore is expected today. New York Governor Kathy Hukel, we

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Speaker 1: have been to a lot of wars together, and this

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Speaker 1: blizzard is the one for the ages. Certainly, it is

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Speaker 1: the blizzard of the century. Those who died around Buffalo

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Speaker 1: were found in cars, homes, and snow banks. Some died

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Speaker 1: while shoveling snow. Buffalo Mayor Byron Brown says they are

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Speaker 1: also dealing with power outages and lack of heat. I'm

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Speaker 1: myself and my family were without power. I can tell

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Speaker 1: you at one point the temperature in our home got

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Speaker 1: down to about forty degrees. It was very uncomfortable. We

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Speaker 1: had to layer up. Mayor Brown says some people have

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Speaker 1: been without power since Friday in New York. Michael Barr,

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Speaker 1: Bloomberg Daybreak. All right, Michael, thank you are The bad

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Speaker 1: weather across the country is also hitting air travel hard,

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Speaker 1: and we get that part of the story. Live with

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Speaker 1: the Bloomberry. Steve Rappaport, it's Steve, good morning, Good morning,

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Speaker 1: Karen and John. Airlines are scrambling to catch up after

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Speaker 1: a winter storm canceled thousands of flights during the Christmas

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Speaker 1: travel rush. The flight tracking website flight of Where shows

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Speaker 1: more than twenty hundred flights grounded today. Southwest was the

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Speaker 1: worst hit yesterday, accounting for nearly seventy of the cancelations nationwide.

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Speaker 1: Southwest Senior director Jim McVeigh, as the storm continued to

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Speaker 1: sweep across the country, the cancelations just compiled one after another,

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Speaker 1: and as a results, we end up with flight cruise

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Speaker 1: and airplanes that are out of place and not in

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Speaker 1: the cities that they need to be in to continue

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Speaker 1: to run our operations. McVeigh says the airline is doing

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Speaker 1: everything it can to write the current challenges. Southwest stock

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Speaker 1: is down about three percent in pre market trading Live

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Speaker 1: in New York. I'm Steve Rappaport, Bloomberg Daybreak, Steve, Thanks

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Speaker 1: and turning back to the markets were closing out the

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Speaker 1: last trading week of a dismal year for equities. SMP

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Speaker 1: is down more than harder hit. His been the tech

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Speaker 1: heavy NASDAG, which has lost a third of its value.

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Speaker 1: Jonathan Gallab is the chief US equity strategist at Credit Sweeze.

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Speaker 1: I think that this problem that we've had in tech

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Speaker 1: is not a sentiment problem. It's an earnings problem, and

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Speaker 1: it doesn't last for three or four quarters. It last

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Speaker 1: for six or eight quarters. And a lot of these

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Speaker 1: big tech companies that two or three years ago we

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Speaker 1: said they have modes, they're impenetrable, and we talked in

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Speaker 1: those terms. Um, a lot of those companies are are

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Speaker 1: getting closer to total addressable market, whether that's in handsets

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Speaker 1: or advertising or other things like that. Jonathan gallabat Credit

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Speaker 1: Swiss thinks the resilient consumer will keep the U s

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Speaker 1: out of recession. Well, John once a pandemic Darling. Peloton

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Speaker 1: disappointed investors last month with the holiday forecast that missed estimates.

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Speaker 1: Now it has a plan to help recoup some of

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Speaker 1: those losses. We get the details TROUM Bloomberg's Erika Herschowitz

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Speaker 1: Peloton at least the statement Monday's saying it will begin

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Speaker 1: offering refurbished bikes at discounts of up to five hundred

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Speaker 1: dollars below new model prices. The price tag on a

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Speaker 1: certified refurbished model will range from eleven forty five dollars.

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Speaker 1: That's three hundred to five hundred dollars below current prices.

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Speaker 1: The refurbished bikes come with the same twelve month limited

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Speaker 1: warranty as the new ones and include delivery and set up.

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Speaker 1: The company's All Access membership is sold separately. Shares a

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Speaker 1: peloton or down this year, Erica Hurwitz, Bloomberg Radio thanks

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Speaker 1: Erica Shares of AMC Entertainment. They're continuing their slide. This

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Speaker 1: morning they were down another seven percent, enter falling sevent

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Speaker 1: percent on Thursday and Friday. The company is proposing to

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Speaker 1: convert preferred equity units into common shares, along with a

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Speaker 1: ten to one reverse stock split. Well, the price of

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Speaker 1: oil also on the rise this morning. John China has

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Speaker 1: taken more steps to unwind it's COVID zero policy, which

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Speaker 1: could increase demand. Straight ahead, we have your latest local headlines,

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Speaker 1: plus a check of sports, and this is Bloomberg the

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Speaker 1: Boomberg Weather for it today becoming partly study the high

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Speaker 1: temperature topic out at about thirty five degrees time. Down

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Speaker 1: for a look at some of the other stories making

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Speaker 1: news in New York adds around the world, and for

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Speaker 1: that we're joined by Bloomberg's Michael Barr Michael, good Morning,

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Speaker 1: Good Morning John. Representative Elec George Santos of New York

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Speaker 1: admitted that he lied about his job experience and college

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Speaker 1: education during his successful campaign for a seat in the

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Speaker 1: US House. In an interview with The New York Post

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Speaker 1: in w ABC radio, the Long Island Republicans said, my

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Speaker 1: sins here are embellishing my resume. I'm sorry. A lot

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Speaker 1: of people overstayed in their resumes or um twist a

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Speaker 1: little bit, or ingrandjate themselves. I'm not saying I'm not

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Speaker 1: guilty of that. I'm just saying I've done so much

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Speaker 1: good work in my career. The New York Times raised

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Speaker 1: questions last week about the life story that Santos had

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Speaker 1: presented during his campaign, including that he had worked for

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Speaker 1: City Group and Goldman Sachs. Neither company could find any

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Speaker 1: records verifying that. In Connecticut, the twenty two year veteran

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Speaker 1: of the North Haven Fire Department has died from injuries

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Speaker 1: he sustained while working ablaze at a four family home.

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Speaker 1: The department identified the firefighter is forty six year old

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Speaker 1: mattheist Wortz. The Connecticut State Police are investigating the cause

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Speaker 1: of the blaze, which displaced thirteen residents on Christmas night.

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Speaker 1: The Biden administration is accusing Texas Governor Gregg Abbot of

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Speaker 1: endangering lives all in the name of politics. Three buses

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Speaker 1: of migrants traveled from Texas and were left in the

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Speaker 1: bitter cold outside Vice Presidents Kamala Harris's official residence. Ukraine's

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Speaker 1: foreign minister has said that his nation wants a summit

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Speaker 1: to end the war, but he doesn't anticipate Russia taking part.

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Speaker 1: The Metro Kuleba says that his government wants a peace

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Speaker 1: summit within two months at the United Nations with the

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Speaker 1: Secretary General Antonio Gutera as mediator. Every war ends as

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Speaker 1: a result of uh the actions taking at the battlefield

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Speaker 1: and at the negotiating table. But the balance of what

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Speaker 1: will be one on the battlefield and what will be

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Speaker 1: one at the table it remains to be seen. Foreign

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Speaker 1: Minister Calai But also told the Associated Press that Russia

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Speaker 1: must face a war crimes tribunal. Global News twenty four

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Speaker 1: hours a day on air and on Bloomberg Quicktake, powered

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Speaker 1: by more than hundred journalists, analysts more than a D

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Speaker 1: twenty countries. Michael Barr and this is Bloomberg, John, Michael,

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Speaker 1: thank you, And it's a five a way to Wall

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Speaker 1: Street time. But the sports were court being brought to

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Speaker 1: you by your trime state. How do you dealer a

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Speaker 1: good morning? John Stashour, Good morning, John. The Jets have

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Speaker 1: four quarterbacks. They've used all four. They started three. Zack

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Speaker 1: Wilson's gone from first string, down to third and up

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Speaker 1: to second, back to first. Now he's back to third

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Speaker 1: string or maybe fourth, and he'll be inactive for the

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Speaker 1: Jets Sunday in Seattle. Mike White has recovered from his

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Speaker 1: injured ribs. He'll start with Joe Flacco, the backup Jets got.

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Speaker 1: Robert Sala asked where things stand with Wilson. I still

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Speaker 1: think he's got a future here. I still think he's

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Speaker 1: gonna be a really good quarterback. Uh. He just he

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Speaker 1: needs time to just kind of sit back and continue

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Speaker 1: the development that we're trying to rekick start, if you will,

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Speaker 1: after the New England game. But I still have him

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Speaker 1: in our future, in our in our plans. This runs

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Speaker 1: contrary to report on Fox that the Jets have decided

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Speaker 1: to move on from Wilson after this season. The Colts

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Speaker 1: with their third different starting QB and one time Super

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Speaker 1: Bowl hero Nick Bole through three interceptions, the Chargers won

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Speaker 1: twenty to three. That clinches a NSC wild card for

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Speaker 1: the Chargers. So there's one a FC spot remaining with

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Speaker 1: Miami leading the Jets, Patriots, and Steelers by one game.

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Speaker 1: Dolphins QB two A ton of alowas and concussion protocol

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Speaker 1: as he was earlier this season, the Giants were walking

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Speaker 1: last night. They host Indianapolis on Sunday. A Giants win

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Speaker 1: and they're in the playoffs. Denver four and eleven just

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Speaker 1: lost by thirty seven. The Broncos fired coach na Fandel Hacket.

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Speaker 1: Ninth straight win for the Red Hot Nets. Both Kevin

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Speaker 1: Durant and Kyrie Irving scored thirty two and seventeen win

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Speaker 1: at Cleveland that has the Nets only two games out

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Speaker 1: of first place in the East. Nick looked in the

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Speaker 1: three games lusing streak. Tonight there in Dallas, the Rangers

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Speaker 1: home for Washington. The Islanders host Pittsburgh and Seaton Hall

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Speaker 1: is a big East game at Marquette. John stashually were

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Speaker 1: Bloomberg Sports, John, all right, thanks so lun John and

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Speaker 1: the Bloomberg Sports Report, brought to you by Audie. Don't

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Speaker 1: let someone else drive off of the Audi model you've

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Speaker 1: always wanted to visit your local try state Audi dealer

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Speaker 1: to get behind the wheel of yours today, or visit

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Speaker 1: Autie Offers dot com for more information. Ahead of the

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Speaker 1: market opened on Wall Street Dow futures right now there

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Speaker 1: are up two D fourteen points, the ruse of about

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Speaker 1: seven tenths of a percent, smp emanate futures twenty seven

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Speaker 1: points higher, and that as that e many futures are

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Speaker 1: seventy points higher. Volatility index the VIX slightly elevated at six.

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Speaker 1: You're listening to Bloomberg Game Break live from coast to coast,

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Speaker 1: from New York to San Francisco, Boston to Washington, d C.

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Speaker 1: Nationwide on Sirius examp of Bloomberg Business app and Bloomberg

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Speaker 1: dot Com. This is Bloomberg Daybreak and good morning. I'm

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Speaker 1: John Tucker. Let's take a moment now to look at

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Speaker 1: the outlook for European banks in the New Year. Two

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Speaker 1: was a year dominated by central bank policy impacting financial

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Speaker 1: services companies all across Europe and the world, and it

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Speaker 1: looks like we could see more of the same in

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Speaker 1: the new year. Inflation and energy dominate the debate in Europe,

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Speaker 1: and both our top mine for the CEO of a

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Speaker 1: sock Jen Bloomberg, Dandy Burger, sat down with a conversation

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Speaker 1: with fred De Kudea to discuss the outlook for sock

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Speaker 1: Jen and the banking industry as a whole. So let's

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Speaker 1: listen in now to that conversation. Are you concerns that

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Speaker 1: as we look at the likelihood of a European recession,

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Speaker 1: that this is a reap eat of two thousand, repeat

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Speaker 1: of Fuche where they're going to have to hike into

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Speaker 1: a recession and then quickly turn around. And I'm more positive,

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Speaker 1: and our central scenario is a kind of yes, slow

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Speaker 1: economy because of the increase of interest rate, but not

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Speaker 1: a recession like the one we experienced into thousand and nine.

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Speaker 1: First of all, for the starting point is pretty good.

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Speaker 1: The we just see no deterioration of the cost of risk.

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Speaker 1: The financial sector is in good shape able to finance

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Speaker 1: the economy. So yes, the central banks want to fight

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Speaker 1: against inflation, it makes sense, But I think we are

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Speaker 1: seeing at this stage some signs of slow down of

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Speaker 1: the pace of inflation. I'm sure that the central banks

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Speaker 1: will carry on monitoring all the parameters and the economies

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Speaker 1: to to caliber rightly their monetary policy. What is being

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Speaker 1: done is needed. But again I don't think that we

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Speaker 1: are facing the same kind of singer. There's a lot

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Speaker 1: of uncertainty. External shocks can create the problem, let's face it.

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Speaker 1: But in the absence of an external shock we are having,

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Speaker 1: mind a slowdown. But which is that we can absorb?

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Speaker 1: So what sort of shock are you concerned about? What

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Speaker 1: we hit the level of changing things for you to

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Speaker 1: erase that optimism, you know, geopolitical crisis, an evolution of

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Speaker 1: the conflict in Ukraine. Just if you wish the way

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Speaker 1: we will fare the winter and effectively with perhaps hope

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Speaker 1: free temperatures which are okay, which we mean reserves, gas

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Speaker 1: reserves being preserved as much as possible will help for

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Speaker 1: the next twelve months in terms of gas prices. So

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Speaker 1: there are many parameters which can play a role in

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Speaker 1: the in the invlation. Wage evolution. Also at this stage

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Speaker 1: I see also companies which are trying to avoid entering

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Speaker 1: into a cycle where wages are increasing too much, so

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Speaker 1: they want to preserve the future. So again every every

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Speaker 1: month where we'll see how it goes. What about corporate Europe,

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Speaker 1: do they have the strength to sustain again the wage pressure,

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Speaker 1: these cost pressures. But at the same time, as we're

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Speaker 1: discussing an e CV which continues to hike interest rates

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Speaker 1: so higher the cost of capital becomes higher. In corporate Europe,

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Speaker 1: we stand that overall, yes, I think so. Of course

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Speaker 1: there will be differences. Some companies will not make it,

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Speaker 1: depending on their leverage, their competitive position. But so farward

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Speaker 1: I'm is seeing is actually companies on one end which

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Speaker 1: have been able to adapt. Look at the evolution of

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Speaker 1: the consumption of electricity or even gas. They are making

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Speaker 1: progress under the pressure to reduce their they are the

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Speaker 1: usage of facite energy, they improve their efficiency. Most of

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Speaker 1: them also, I think, have been able to pass in

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Speaker 1: their prices the increase of the cost of and j wages.

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Speaker 1: So again, that's where it's very important in my mind

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Speaker 1: to see whether we are entering and cycled and normally

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Speaker 1: progressing normalization of inflation, and I think it should be

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Speaker 1: fine or unfortunately, yes, inflation stays, and then it might

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Speaker 1: be more difficult because at some point the consumer will

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Speaker 1: not be able to absorb the price increase. So jury

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Speaker 1: is out. The coming months will be critical, but there

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Speaker 1: is a path for something which is manageable. I think

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Speaker 1: these coming months are also going to be some of

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Speaker 1: your last at sock Gen. I mean you've now seen

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Speaker 1: the longest tenure of of any banking chief in Europe.

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Speaker 1: As you prepare for this economic environment, You've had to

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Speaker 1: prepare the bank for a lot. What does preparation look

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Speaker 1: like this time around it? As you get ready to

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Speaker 1: step down from the from the helm, well, I must say,

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Speaker 1: my short term agenda is precisely to ensure that that

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Speaker 1: we live a bank in good shape to my success,

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Speaker 1: what does that mean? Complete the job in terms of

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Speaker 1: strategic project. Because this product jacks the merger of our

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Speaker 1: two French networks, The acquisition of this plan will bring

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Speaker 1: benefits which are independent on the economy. On the economic

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Speaker 1: cat look, we will bring the Scenergy's revenues in cost

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Speaker 1: whatever the environment is. It's a way to of course

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Speaker 1: reinforce the business model. The second element, of course, is

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Speaker 1: to ensure that we are entering this and certain environment

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Speaker 1: with the maximum of provision. We will end up to

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Speaker 1: and twenty two with a level of excente provision within

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Speaker 1: our jargon you know as one as two higher than

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Speaker 1: the peak of the covet. It's a scient A general

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Speaker 1: CEO Frederick o'deo speaking with Bloomberg Stanley Burger is not

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Speaker 1: looked for the new year. You can cage the full

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Speaker 1: conversation online at Bloomberg dot com. Five eighteen of law

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Speaker 1: Street and still in a Bloomberg daybreak, we check on

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Speaker 1: markets and bring you the latest the business, economics and finance.

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Speaker 1: I'm John Tucker. This is Bloomberg Markets headlines and breaking

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Speaker 1: news twenty four hours a day at Bloomberg dot com,

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Speaker 1: the Bloomberg Business Outland at Bloomberg Quick Tape. This is

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Speaker 1: a Bloomberg Business lash And I'm Karen Moscow along with

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Speaker 1: John Tucker. And equities are arising with a dollar declines,

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Speaker 1: a maid positive sentiment from China's rollback of COVID isolation

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Speaker 1: measures and the cooling of a key inflation gauge in

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Speaker 1: the US. And we checked the markets all day long

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Speaker 1: here on Bloomberg with SMP futures up about twenty eight

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Speaker 1: points or seven tenths of uppercent. Down future is up

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Speaker 1: about seven tenths of upper cent or two hundred nineteen

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Speaker 1: points and Nasdack futures up six tents of uppercent or

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Speaker 1: seventy one points. The decks in Germany's up sixtents of

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Speaker 1: uppercent ten. Your treasury up one thirty second. You have

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Speaker 1: three point seven four percent. They yield on the two

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Speaker 1: year four point three three percent. Nimex screwed oil is

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Speaker 1: up about nine tenths of upper cent or sixty eight

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Speaker 1: cents at eighty dollars twenty four cents of barrel comics

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Speaker 1: gold up seven tents of upper cent or eleven dollars

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Speaker 1: seventy cents. Eighteen fifteen eighty announced the euro one point

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Speaker 1: six six one against the dollar. British found one point

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Speaker 1: to zero six three, and that's a bloomberg business flash

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Speaker 1: Shall Here's Michael Barr with more on what's going on

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Speaker 1: around the world. Unchael, Good morning, Good morning, Karen. President

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Speaker 1: Biden has approved New York's emergency electoration as the death

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Speaker 1: toll from a pre Christmas blizzard that paralyzed the Buffalo

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Speaker 1: area and much of the country has risen to twenty eight.

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Speaker 1: The dead have been found in their cars, homes, and

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Speaker 1: in snow banks. Meanwhile, thousands of flights were canceled or delayed,

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Speaker 1: and more are scrapped for today. South Korea sent drones

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Speaker 1: across the border into North Korea. It's an unprecedented tit

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Speaker 1: for tat military move after Kim joan UN's regime dispatched

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Speaker 1: five unmanned aerial vehicles into its air space. Monday night football,

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Speaker 1: the Chargers beat the Colts twenty three in the NBA.

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Speaker 1: The nets one Global News twenty four hours a day

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Speaker 1: on air hand on Bloomberg Quick Take, powered by more

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Speaker 1: than twenty seven hundred journalists and analysts more than twenty countries.

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Speaker 1: Michael Barr, this is Bloomberg, John, Michael, thank you. It

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Speaker 1: is now five twenty three on Wall Street. I'm John Tucker.

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Speaker 1: This is Bloomberg Daybreak. The stocks are getting a boost

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Speaker 1: this morning, and where that China is removing its last

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Speaker 1: COVID restrictions. Let's take a deeper dive into this story

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Speaker 1: this morning with Bloomberg reporter Alan Juan, who joins us

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Speaker 1: this morning from Shanghai. Alan, thanks for being with us,

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Speaker 1: appreciate it. What can you tell us about what China

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Speaker 1: is doing? From January eight, China is no longer going

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Speaker 1: to require inbound visitors to quarantine at the hotels anymore.

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Speaker 1: I mean, basically, it's getting rid of policy that's curb travel,

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Speaker 1: hurt economy, and left the country actually from the rest

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Speaker 1: of the world that's said, it's still going to require

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Speaker 1: travel arrivals to to show negative PCR test results taken

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Speaker 1: within forty hours of departure. But you know something that's

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Speaker 1: nothing competible we have right now. I mean, right now

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Speaker 1: it's like about five days of the whole took quarantine

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Speaker 1: and another three days at a home monitoring. UM. I myself,

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Speaker 1: I've done two long quarantines after leaving China coming Act

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Speaker 1: one for fourteen days and one for ten days, and

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Speaker 1: I tell you it's it's pretty brutal. So I'm actually

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Speaker 1: looking forward to this change in policy. This mean COVID,

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Speaker 1: uh the outbreak has gotten better in China or the

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Speaker 1: government's just throwing in the towel. Now the COVID is

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Speaker 1: not getting better, um and maybe Peaking and Beijing, Shanghai,

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Speaker 1: we're still in the midst of it. Uh So right

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Speaker 1: now we're giving about three or four thousand, officially three

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Speaker 1: or four cases of the day, which sort of flies

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Speaker 1: in the face of everything we're seeing on the ground

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Speaker 1: and what some of the provinces of reporting like, for example,

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Speaker 1: Judge and Province, which is actually Shanghai, reported one million

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Speaker 1: cases and expects another million more before it peaks. And

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Speaker 1: what we do. What we also know is that about

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Speaker 1: the eighteen percent almost two and fifteen million people have

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Speaker 1: already been infected and acts according to the China's National

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Speaker 1: Health Commission. UH this was for the minutes of one

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Speaker 1: of their meetings. Have they given in any indication that

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Speaker 1: they could go back to the restrict of COVID policies? No,

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Speaker 1: I I think it's over. I did. China has dismantle

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Speaker 1: the whole apparatus right now, you know, there's I'm just

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Speaker 1: I'm stunning how fast everything has occurred. Right now, there's

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Speaker 1: no there's no longer a need to get any kind

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Speaker 1: of PC artists, and even if you want to want

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Speaker 1: to get one, it's kind of hard to find. I

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Speaker 1: think we've gone in the other direction, which is basically, UM,

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Speaker 1: you know, let it fly. Yeah, Well, what next at

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Speaker 1: this point? I mean, they're still doing monitoring, are they not? UM?

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Speaker 1: You know, China is UM. You know, they're they're trying

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Speaker 1: to mitigate some of these UM. Illnesses and deaths right

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Speaker 1: right now, they're they're downgrading the management of COVID zero

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Speaker 1: from highest level to the second highest, meaning that they're

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Speaker 1: they're they're saying that COVID isn't as bad as people

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Speaker 1: think people initially thought as being treated now more like

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Speaker 1: the flu or some of some kind of cold. But

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Speaker 1: they're also pledging into increase I see you beds, increase

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Speaker 1: the supply of a life saving equipment like ventilators, and

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Speaker 1: also they're going to retrofit some of these quarantine for

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Speaker 1: quaranty of facilities. It's the hospitles that can handle COVID patients. Hey,

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Speaker 1: what has been the the overall impact on the Chinese economy?

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Speaker 1: Only get like twenty seconds left, Okay, it's been it's

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Speaker 1: been horrendous. I mean, right this year, a lot of

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Speaker 1: economists estimated growth roughly, which is like on the lowest

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Speaker 1: in decades, and normally you get about you know, five

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Speaker 1: six five percent every year, and that's what they're predicting.

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Speaker 1: Connection or more so, it's been devastating for the economy.

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Speaker 1: It's been devastating for a lot of businesses that had

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Speaker 1: to sort of impose these closed loops in order to

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Speaker 1: come up business and most importantly you know it's it's

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Speaker 1: it's her summer sentiment. Okay, Alan, We're gonna have to

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Speaker 1: leave it there, Bloomberg's Alan wand thanks for joining us

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Speaker 1: from Shanghai just to hand top stories. But first a

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Speaker 1: look at the Bloomberg weather for like cloudy, this will

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Speaker 1: be drifting through the Tristead area for while this morning,

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Speaker 1: but eventually it moves out him will see sunshine developed

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Speaker 1: later in the day. Temperatures will be close to thirty

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Speaker 1: five tonight, generally clear, sky slows overnight thirty Tomorrow we

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Speaker 1: should be mostly sunny. Hi's reaching partly cloudy thirty to

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Speaker 1: thirty five tomorrow night, turning mile their Thursday, but sunshine

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Speaker 1: has a reach forty five to fifty. I'm Rob Carolyn

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00:24:22,359 --> 00:24:26,440
Speaker 1: with your three day forecast on Bloomberg eleven three oh

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00:24:27,040 --> 00:24:31,560
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.

431
00:24:31,680 --> 00:24:35,120
Speaker 1: Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety

432
00:24:35,440 --> 00:24:39,000
Speaker 1: one to Boston, Bloomberg one O six one does San Francisco,

433
00:24:39,040 --> 00:24:42,520
Speaker 1: Bloomberg sixty to the Country Sirius xm ch A one

434
00:24:42,600 --> 00:24:45,680
Speaker 1: nineteen and around the globe. The Bloomberg Business app and

435
00:24:45,760 --> 00:24:55,399
Speaker 1: Bloomberg Radio dot com. This is Bloomberg Daybreak and we

436
00:24:55,440 --> 00:24:58,280
Speaker 1: are coming up to five thirty on Wall Street. Good morning,

437
00:24:58,320 --> 00:25:01,320
Speaker 1: I'm Ter in Moscow and John Tucker. We're being brought

438
00:25:01,359 --> 00:25:05,199
Speaker 1: to you by your daily reminder from Innovation Refunds to

439
00:25:05,240 --> 00:25:08,399
Speaker 1: apply for a payroll tax refund if you're smaller and

440
00:25:08,480 --> 00:25:12,760
Speaker 1: medium sized business was impacted by COVID. Nineteen Innovation Refunds

441
00:25:12,800 --> 00:25:16,919
Speaker 1: clients already claimed over two billion dollars in payroll tax refunds.

442
00:25:17,119 --> 00:25:20,639
Speaker 1: Get started at Get Refunds dot com. And we're just

443
00:25:20,720 --> 00:25:23,280
Speaker 1: about four hours away from the open of US trading.

444
00:25:23,320 --> 00:25:24,720
Speaker 1: Let's get you have to date on the news you

445
00:25:24,760 --> 00:25:27,199
Speaker 1: need to know at this hour. US features and stocks

446
00:25:27,240 --> 00:25:30,760
Speaker 1: overseas are higher this morning. The boost and sentiment comes

447
00:25:30,760 --> 00:25:34,199
Speaker 1: as China scraps more COVID rules now, Beijane plans to

448
00:25:34,200 --> 00:25:37,760
Speaker 1: and it's quarantine rules early next month. Bloomberg Daybreak Asia

449
00:25:37,760 --> 00:25:41,000
Speaker 1: anchor Brian Curtis has more from Hong Kong. This marks

450
00:25:41,040 --> 00:25:44,399
Speaker 1: the end of China's three years of COVID isolation. People

451
00:25:44,480 --> 00:25:47,160
Speaker 1: arriving in China will only need a negative COVID test

452
00:25:47,200 --> 00:25:50,720
Speaker 1: within forty eight hours. Of departure. Up until now, arrivals

453
00:25:50,760 --> 00:25:53,600
Speaker 1: had to quarantine for eight days. The government said it

454
00:25:53,600 --> 00:25:57,160
Speaker 1: would handle visa applications for foreigners for everything from business

455
00:25:57,160 --> 00:26:01,000
Speaker 1: and study to family reunions, and outbound tourism will also

456
00:26:01,040 --> 00:26:03,800
Speaker 1: resume quickly. This could be very good for Europe and

457
00:26:03,880 --> 00:26:08,480
Speaker 1: other destinations. Travel and consumer good stocks jumped in Hong Kong.

458
00:26:08,560 --> 00:26:11,800
Speaker 1: Brian Curtis Bloomberg Gay Break thanks Brian Stocks and Shanna

459
00:26:11,880 --> 00:26:14,680
Speaker 1: Game more than one percent overnight. That's giving a lift

460
00:26:14,680 --> 00:26:17,320
Speaker 1: to US futures as we closed out the last trading

461
00:26:17,400 --> 00:26:21,560
Speaker 1: week of the year. It's been a dismal two for

462
00:26:21,640 --> 00:26:25,719
Speaker 1: bowls with the SMP nive hundred downboard. But Credit Squeez,

463
00:26:25,720 --> 00:26:28,640
Speaker 1: the US equity strategist out that gallup seems a rebound

464
00:26:28,680 --> 00:26:31,680
Speaker 1: for next year. If you do have oil lift off

465
00:26:31,720 --> 00:26:34,080
Speaker 1: and then you actually get some upside in the more

466
00:26:34,200 --> 00:26:37,680
Speaker 1: commodity sensitive stuff like the MP name and the service names,

467
00:26:37,960 --> 00:26:39,800
Speaker 1: the sector is going to be a really big surprise.

468
00:26:39,840 --> 00:26:43,119
Speaker 1: It's absolutely topic. That's Jonathan Gallub at Credit Sweez. He

469
00:26:43,160 --> 00:26:47,719
Speaker 1: predicts the SP five will close ATTI next year. Well,

470
00:26:47,760 --> 00:26:51,160
Speaker 1: another major story we're following this morning, John the bad

471
00:26:51,240 --> 00:26:54,480
Speaker 1: weather continuing to hamper air travel across the country. We

472
00:26:54,480 --> 00:26:57,160
Speaker 1: get the latest live at the Bloombergy Steve Rappapore. It's Steve,

473
00:26:57,200 --> 00:26:59,520
Speaker 1: good morning, Good morning, Karen and John. It's a good

474
00:26:59,520 --> 00:27:02,480
Speaker 1: thing Sam it doesn't fly Southwest, Otherwise he may have

475
00:27:02,560 --> 00:27:05,280
Speaker 1: never left the North Pole. The account the airline accounts

476
00:27:05,280 --> 00:27:09,760
Speaker 1: for roughly sevent of cancelations nationwide yesterday. Southwest stock is

477
00:27:09,800 --> 00:27:12,680
Speaker 1: down about three percent in pre market trading. Senior director

478
00:27:12,760 --> 00:27:15,640
Speaker 1: Jim McVeigh explains the storm caused a ripple effect, leaving

479
00:27:15,640 --> 00:27:18,320
Speaker 1: the airline to play catch up. As the storm continued

480
00:27:18,359 --> 00:27:22,000
Speaker 1: to sweep across the country, the cancelations just compiled one

481
00:27:22,119 --> 00:27:24,280
Speaker 1: after another, and as a results, we end up with

482
00:27:24,320 --> 00:27:26,320
Speaker 1: flight crews and airplanes that are out of place and

483
00:27:26,440 --> 00:27:28,119
Speaker 1: not in the cities that they need to be in

484
00:27:28,480 --> 00:27:31,280
Speaker 1: to continue to run our operations. McVeigh says Southwest is

485
00:27:31,320 --> 00:27:33,919
Speaker 1: doing everything it can to write the challenges it faces.

486
00:27:34,040 --> 00:27:39,760
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,

487
00:27:39,760 --> 00:27:41,560
Speaker 1: thank you. The price of oil is on the rise

488
00:27:41,600 --> 00:27:44,200
Speaker 1: this morning. China has taken more steps to unwine it's

489
00:27:44,240 --> 00:27:47,720
Speaker 1: COVID zero policy, which could increase demand and freezing weather

490
00:27:47,760 --> 00:27:50,280
Speaker 1: across the US has led to refinery closures in the

491
00:27:50,320 --> 00:27:53,280
Speaker 1: Texas Gulf Coast area. Checking oil right now and I'm

492
00:27:53,320 --> 00:27:56,480
Speaker 1: nex screwed. Is up one straight ahead your latest local

493
00:27:56,480 --> 00:28:00,240
Speaker 1: headlines plus a check of sports and this is bloom work.

494
00:28:03,440 --> 00:28:07,159
Speaker 1: Thanks scaring one wall streets. Time to bring in Michael

495
00:28:07,160 --> 00:28:09,120
Speaker 1: Barr with more. What else is going on in New

496
00:28:09,200 --> 00:28:12,160
Speaker 1: York cans around the world, Ton, Thank you very much, Sarah.

497
00:28:12,200 --> 00:28:14,960
Speaker 1: President Biden has approved a state of emergency as a

498
00:28:15,040 --> 00:28:19,159
Speaker 1: winter nightmare continues in western New York. At least twenty

499
00:28:19,200 --> 00:28:21,960
Speaker 1: eight people have died in the Buffalo area. New York.

500
00:28:21,960 --> 00:28:27,159
Speaker 1: Governor we still have scores and scores of vehicles that

501
00:28:27,240 --> 00:28:30,919
Speaker 1: were abandoned when people left during the storm. Governor Cathy

502
00:28:30,960 --> 00:28:34,480
Speaker 1: Hoco called it the blizzard of the century. Representative elect

503
00:28:34,480 --> 00:28:37,879
Speaker 1: George Santos admitted he did not tell the truth about

504
00:28:37,880 --> 00:28:42,320
Speaker 1: his job experience and college education during his successful campaign

505
00:28:42,360 --> 00:28:45,280
Speaker 1: for her House seat. The Long Island Republicans spoke in

506
00:28:45,360 --> 00:28:48,400
Speaker 1: an interview with City and State airing on ABC seven

507
00:28:48,440 --> 00:28:52,160
Speaker 1: about questions on his campaign website that he was Jewish.

508
00:28:52,480 --> 00:28:56,600
Speaker 1: I owe his joke. I'm Catholic, but I'm also Jewish.

509
00:28:58,600 --> 00:29:01,080
Speaker 1: Uh and I've made that joke is growing up. I

510
00:29:01,120 --> 00:29:05,480
Speaker 1: grew up fully aware that my grandparents were Jewish, came

511
00:29:05,520 --> 00:29:09,160
Speaker 1: from from a Jewish family, and they were refugees to Brazil,

512
00:29:09,520 --> 00:29:11,680
Speaker 1: and that was always the story I grew up with,

513
00:29:11,720 --> 00:29:14,440
Speaker 1: and I've always known it very well. Santos says he

514
00:29:14,600 --> 00:29:18,120
Speaker 1: campaigned talking about the people's concerns, not his resume. The

515
00:29:18,160 --> 00:29:21,160
Speaker 1: Biden administration is calling out the governor of Texas, saying

516
00:29:21,160 --> 00:29:24,240
Speaker 1: it was a cruel and dangerous stunt. Bus load the

517
00:29:24,320 --> 00:29:27,600
Speaker 1: migrants arrived in Washington, d C. On Christmas even sixteen

518
00:29:27,640 --> 00:29:31,320
Speaker 1: degree weather without warning, at the official residents of Vice

519
00:29:31,320 --> 00:29:34,920
Speaker 1: President Kamala Harris. Ukraine's foreign minister is calling for a

520
00:29:35,000 --> 00:29:37,320
Speaker 1: peace sumone at the u N to end the war.

521
00:29:37,720 --> 00:29:41,000
Speaker 1: Dmitro Culeba, speaking to the Associated Press, as the summit

522
00:29:41,280 --> 00:29:44,160
Speaker 1: should be with the u N Secretary General as mediator.

523
00:29:44,480 --> 00:29:47,360
Speaker 1: We think that the best the United Nations could be

524
00:29:47,400 --> 00:29:51,400
Speaker 1: the best venue for holding this uh this summit, because

525
00:29:51,440 --> 00:29:54,400
Speaker 1: this is not about making a favor to a certain country.

526
00:29:54,560 --> 00:29:57,440
Speaker 1: This is really about bringing everyone on board. Foreign Minister

527
00:29:57,520 --> 00:29:59,840
Speaker 1: Kalamba Global News twenty four hours a day on a

528
00:30:00,040 --> 00:30:03,760
Speaker 1: rand on Bloomberg Quittake powered by more hundred journalists and

529
00:30:03,760 --> 00:30:08,400
Speaker 1: analysts more than twenty countries. Michael bar this is Bloomberg, John, Michael,

530
00:30:08,520 --> 00:30:14,640
Speaker 1: thank you. It's now four of Wall Street time for

531
00:30:14,720 --> 00:30:17,600
Speaker 1: the Sports Report being brought to you by a tri

532
00:30:17,800 --> 00:30:20,600
Speaker 1: state out of the Hank Morning once again to John Stashower.

533
00:30:20,680 --> 00:30:23,240
Speaker 1: Good morning John. Earlier this season than nets where I

534
00:30:23,320 --> 00:30:26,080
Speaker 1: mast started one in five, nine and eleven, they fired

535
00:30:26,120 --> 00:30:28,120
Speaker 1: the coach, that was the whole, Kyrie Irving solo with

536
00:30:28,160 --> 00:30:32,000
Speaker 1: the that's just one of Cleveland one seventeen, both Kyrie

537
00:30:32,080 --> 00:30:34,320
Speaker 1: and Kevin Durant scored thirty two points. They combined to

538
00:30:34,360 --> 00:30:37,160
Speaker 1: make twelve of nineteen three pointers of the nets of

539
00:30:37,160 --> 00:30:39,960
Speaker 1: one nine in a row thirteen and fourteen. Their coach,

540
00:30:40,400 --> 00:30:43,600
Speaker 1: Jacques Vaughn. We came back as a group, we kind

541
00:30:43,600 --> 00:30:45,600
Speaker 1: of classed to each other that it was going to

542
00:30:45,680 --> 00:30:50,240
Speaker 1: be about basketball and um, hopefully not let anything interfere

543
00:30:50,400 --> 00:30:53,880
Speaker 1: any outside noise, uh interfere with that. And our guys

544
00:30:53,880 --> 00:30:57,320
Speaker 1: have done an unbelievable job of protecting each other and

545
00:30:57,640 --> 00:31:00,920
Speaker 1: making this thing about basketball. That's way tomorrow. Atlanta Nixer

546
00:31:00,960 --> 00:31:03,719
Speaker 1: in Dallas Tonight Monday night, football Chargers beat the Colts

547
00:31:04,080 --> 00:31:06,440
Speaker 1: twenty to three. L as in the playoffs. One spot

548
00:31:06,560 --> 00:31:09,320
Speaker 1: left in the a f C was slumping Miami, leading

549
00:31:09,320 --> 00:31:12,120
Speaker 1: the Jets, Patriots, and Steelers by one game. The Dolphins

550
00:31:12,200 --> 00:31:14,960
Speaker 1: visit the Path Sunday, Miami QB two A ton of

551
00:31:15,000 --> 00:31:18,560
Speaker 1: below is back in concussion protocol. The Jets Sunday visit Seattle.

552
00:31:18,680 --> 00:31:22,480
Speaker 1: Mike White returns as starting QB is injured, ribs having hell.

553
00:31:22,560 --> 00:31:24,400
Speaker 1: That's also a big game for the Seahawks. We're trying

554
00:31:24,440 --> 00:31:27,280
Speaker 1: to make the NFC playoffs, as are the Giants. They

555
00:31:27,360 --> 00:31:31,240
Speaker 1: are in where the home win Sunday over Indianapolis. Daniel Hackett,

556
00:31:31,320 --> 00:31:33,800
Speaker 1: unable to complete his first season as coach in Denver,

557
00:31:33,960 --> 00:31:36,640
Speaker 1: fired with the Broncos four and eleven. The hold up

558
00:31:36,640 --> 00:31:39,280
Speaker 1: in the Carlos Korea contract is an injured ankle that

559
00:31:39,400 --> 00:31:41,640
Speaker 1: dates back to two thousand and fourteen. The mettre said

560
00:31:41,640 --> 00:31:44,040
Speaker 1: to be trying to restructure the deal make it not

561
00:31:44,240 --> 00:31:47,040
Speaker 1: all guarantee. The feeling is Korea will still become a

562
00:31:47,680 --> 00:31:50,520
Speaker 1: John Stashward Bloomberg Sports done all right, Thanks so Lane

563
00:31:50,800 --> 00:31:53,800
Speaker 1: right now. DALLA futures up two hundred twenty eight points,

564
00:31:54,280 --> 00:31:58,840
Speaker 1: SMP futures up eight, but NAK futures seventy two points higher.

565
00:31:59,040 --> 00:32:03,360
Speaker 1: This is Bloomberg. The Bloomberg Sports Report was brought to

566
00:32:03,400 --> 00:32:05,560
Speaker 1: you by Audie. You don't let someone else drive off

567
00:32:05,560 --> 00:32:07,640
Speaker 1: of the Audi model. You've always want to visit your

568
00:32:07,640 --> 00:32:09,800
Speaker 1: local Try and State Audie dealer to get behind the

569
00:32:09,800 --> 00:32:12,960
Speaker 1: wheel of yours today, or visit Autie Offers dot com

570
00:32:13,080 --> 00:32:16,440
Speaker 1: for more information. It is now five thirty six down

571
00:32:16,480 --> 00:32:19,520
Speaker 1: Wall Street, time for the Bloomberg Tri State Business Report.

572
00:32:19,800 --> 00:32:23,280
Speaker 1: Here with that is Gina Servetti. The former Wellington Hotel

573
00:32:23,360 --> 00:32:26,320
Speaker 1: is reportedly changing hands. The New York Post reports that

574
00:32:26,600 --> 00:32:29,280
Speaker 1: Xtel is paying more than ninety four million dollars to

575
00:32:29,320 --> 00:32:32,640
Speaker 1: buy the leasehold of the former Wellington from b D Hotels,

576
00:32:32,720 --> 00:32:35,840
Speaker 1: and that plans might include a significantly larger building for

577
00:32:35,880 --> 00:32:39,160
Speaker 1: the site at Seventh Avenue and West fifty five in Manhattan.

578
00:32:39,320 --> 00:32:43,560
Speaker 1: Lions Gates new million dollar production studio for Newark could

579
00:32:43,600 --> 00:32:45,480
Speaker 1: be in line for as much as a hundred million

580
00:32:45,520 --> 00:32:48,840
Speaker 1: in state subsidies. That's what the Asbury Park Presses reporting,

581
00:32:48,920 --> 00:32:51,480
Speaker 1: saying the incentives are part of a development deal approved

582
00:32:51,560 --> 00:32:54,320
Speaker 1: last week. It's New Jersey's second major movie and TV

583
00:32:54,440 --> 00:32:57,920
Speaker 1: production project getting the green light this year, following Netflix,

584
00:32:57,960 --> 00:32:59,920
Speaker 1: which plans to build a new studio at the form

585
00:33:00,080 --> 00:33:02,600
Speaker 1: or side of Fort Monmouth, and New Jersey based Harbor

586
00:33:02,600 --> 00:33:06,040
Speaker 1: Freight Tools already has more than th hundred locations around

587
00:33:06,040 --> 00:33:08,680
Speaker 1: the country. Now it's expanding further in its home state.

588
00:33:08,800 --> 00:33:11,560
Speaker 1: And j dot com reports the family owned hardware chain

589
00:33:11,600 --> 00:33:13,960
Speaker 1: will open a new store in Deptford, bringing its New

590
00:33:14,000 --> 00:33:17,560
Speaker 1: Jersey store count to almost thirty locations. That's the Bloomberg

591
00:33:17,600 --> 00:33:21,640
Speaker 1: Tri State Business Report on Genus Servetti. All right, thanks

592
00:33:21,840 --> 00:33:24,600
Speaker 1: seven on Wall Street Time down for the Bloomberg Green Report,

593
00:33:24,680 --> 00:33:28,120
Speaker 1: and well that here's Bloomberg's Jeff Bellinger. The days of

594
00:33:28,160 --> 00:33:32,160
Speaker 1: so called forever chemicals, or PIFAs are numbered at three M.

595
00:33:32,200 --> 00:33:35,920
Speaker 1: The big conglomerate is dealing with regulatory pressure and lawsuits

596
00:33:35,920 --> 00:33:39,040
Speaker 1: over the substances. It announced last week that it will

597
00:33:39,040 --> 00:33:42,480
Speaker 1: stop making the chemicals and discontinue their use in products

598
00:33:42,520 --> 00:33:46,560
Speaker 1: by the end of the move by three marks historic

599
00:33:46,600 --> 00:33:49,520
Speaker 1: break with an entire class of chemicals that were first

600
00:33:49,560 --> 00:33:52,960
Speaker 1: created in researching the atomic bomb during World War Two.

601
00:33:53,320 --> 00:33:56,320
Speaker 1: They helped three M develop hundreds of different products over

602
00:33:56,360 --> 00:33:59,560
Speaker 1: more than seventy years. Now, things such as Scotch guard,

603
00:33:59,640 --> 00:34:03,240
Speaker 1: fire fighting foam and other products are potential liabilities for

604
00:34:03,280 --> 00:34:07,560
Speaker 1: the company. Three M CEO Mike Roman acknowledges increased customer

605
00:34:07,720 --> 00:34:10,440
Speaker 1: unease over p fos and says the company does not

606
00:34:10,560 --> 00:34:13,400
Speaker 1: see a viable business in the future. He says the

607
00:34:13,480 --> 00:34:16,520
Speaker 1: decision will allow three M to move into other higher

608
00:34:16,560 --> 00:34:20,000
Speaker 1: growth opportunities. He says it is too early to discuss

609
00:34:20,000 --> 00:34:24,200
Speaker 1: whether plans that manufacture p fos will be repurposed. Jeff Bullinger,

610
00:34:24,320 --> 00:34:26,840
Speaker 1: Bloomberg Radio. All right, thanks a lot, Jeff, and we

611
00:34:26,960 --> 00:34:29,440
Speaker 1: have green on the screen ahead of the cash open

612
00:34:29,920 --> 00:34:34,560
Speaker 1: on this Tuesday morning. Down futures right now two points

613
00:34:34,920 --> 00:34:36,920
Speaker 1: that's a rise of about seven tenths of a percent

614
00:34:37,000 --> 00:34:40,560
Speaker 1: this morning. And the SMP emniate futures twenty eight points higher,

615
00:34:40,600 --> 00:34:44,160
Speaker 1: that's up seven tenths of a percent. The NASAK futures

616
00:34:44,239 --> 00:34:47,000
Speaker 1: right now seventy one points higher, that is up six

617
00:34:47,120 --> 00:34:50,680
Speaker 1: tenths of a percent. And stay with us. Just ahead,

618
00:34:50,840 --> 00:34:53,319
Speaker 1: we'll get a preview of the trading day ahead with

619
00:34:53,360 --> 00:34:57,279
Speaker 1: Sam Stovall, the chief investment strategist at c f r A.

620
00:34:57,960 --> 00:35:04,799
Speaker 1: This is Bloomberg Markets, headlines and breaking news twenty four

621
00:35:04,800 --> 00:35:07,840
Speaker 1: hours a day at Bloomberg dot com. The Bloomberg Business

622
00:35:07,880 --> 00:35:11,560
Speaker 1: at and at Bloomberg quicktape, this is a Bloomberg business

623
00:35:11,600 --> 00:35:20,360
Speaker 1: lash and I'm Karen Moscow at US not Index Futures

624
00:35:20,440 --> 00:35:23,480
Speaker 1: on the rise this morning amid optimism that China's reopening

625
00:35:23,520 --> 00:35:26,520
Speaker 1: will boost global growth next year, providing support for Marcus.

626
00:35:26,760 --> 00:35:28,400
Speaker 1: And we check the markets all day long here on

627
00:35:28,400 --> 00:35:30,799
Speaker 1: Bloomberg S and P Future is up about twenty eight

628
00:35:30,800 --> 00:35:33,280
Speaker 1: points or seven tenths of a percent, and down features

629
00:35:33,360 --> 00:35:35,479
Speaker 1: up about seven tenths of upper cent or two hundred

630
00:35:35,520 --> 00:35:38,080
Speaker 1: twenty four points, and now as day futures up six

631
00:35:38,080 --> 00:35:40,840
Speaker 1: tenths of upper cent or sixty eight points. The decks

632
00:35:40,840 --> 00:35:43,239
Speaker 1: in Germany's up seven tenths of upper cent. Ten year

633
00:35:43,280 --> 00:35:46,480
Speaker 1: treasury up one thirty second, held three point seven four percent.

634
00:35:46,520 --> 00:35:48,840
Speaker 1: They yield on the two year four point three three percent.

635
00:35:49,280 --> 00:35:51,640
Speaker 1: Nimex screwed oils up one point one percent of eighty

636
00:35:51,719 --> 00:35:53,920
Speaker 1: six cents at eighty dollars, forty two cents of barrel

637
00:35:54,160 --> 00:35:56,520
Speaker 1: Comics gold up seven tenths of upper cent or twelve

638
00:35:56,560 --> 00:35:59,640
Speaker 1: dollars at eighteen sixteen announced the euro one point oh

639
00:35:59,719 --> 00:36:02,080
Speaker 1: six x three against the dollar. British found one point

640
00:36:02,120 --> 00:36:04,440
Speaker 1: two zero six two The gains at one thirty three

641
00:36:04,520 --> 00:36:07,960
Speaker 1: point three too. And bitcoin this morning is a tenth

642
00:36:08,000 --> 00:36:11,359
Speaker 1: of a percent. It's at sixteen thousand, eight hundred fifty

643
00:36:11,400 --> 00:36:13,719
Speaker 1: six dollars. And that's a Bloomberg Business flash. Now here's

644
00:36:13,760 --> 00:36:16,200
Speaker 1: Michael Barr with Moore on what's going on around the world.

645
00:36:16,480 --> 00:36:18,719
Speaker 1: Call Karen, thank you very much. The death soul from

646
00:36:18,719 --> 00:36:22,000
Speaker 1: a pre Christmas blizzard that paralyzed the Buffalo area and

647
00:36:22,200 --> 00:36:24,120
Speaker 1: much of the country has risen to twenty eight in

648
00:36:24,200 --> 00:36:28,080
Speaker 1: Western New York. The dead have been found in their cars, homes,

649
00:36:28,160 --> 00:36:32,319
Speaker 1: and in snowbanks. Meanwhile, President Biden approved an emergency doctloration

650
00:36:32,400 --> 00:36:36,440
Speaker 1: for Western New York. The Biden administration criticized Beijing's military

651
00:36:36,560 --> 00:36:40,560
Speaker 1: drills near Taiwan this week as provocative. It insists it

652
00:36:40,600 --> 00:36:43,600
Speaker 1: will continue, hoping the government in tai Paid defend itself.

653
00:36:44,080 --> 00:36:47,560
Speaker 1: Monday Night football, the Chargers beat the Colts three in

654
00:36:47,600 --> 00:36:50,719
Speaker 1: the NBA. The NETS one Global News twenty four hours

655
00:36:50,760 --> 00:36:54,000
Speaker 1: a day on air and on Bloomberg Quicktake, powered by

656
00:36:54,080 --> 00:36:56,840
Speaker 1: more than twenty seven journalists and analysts more than a

657
00:36:56,920 --> 00:37:00,600
Speaker 1: hundred twenty countries. Michael bar this is Bloomberg, John, Michael,

658
00:37:00,640 --> 00:37:02,560
Speaker 1: thank you. Or the smp F I've had. It is

659
00:37:02,600 --> 00:37:06,200
Speaker 1: on track for its worst annual performance since two thousand

660
00:37:06,239 --> 00:37:09,399
Speaker 1: and eight. It's the last trading week of the year.

661
00:37:09,560 --> 00:37:12,239
Speaker 1: Futures right now are climbing, and let's get you set

662
00:37:12,280 --> 00:37:14,440
Speaker 1: up for the trading day head now with Sam Stowball,

663
00:37:14,800 --> 00:37:18,200
Speaker 1: the chief of investment Strategist at c f R. A

664
00:37:18,520 --> 00:37:21,640
Speaker 1: honor to have you Sam. Good morning, Um, Good morning John.

665
00:37:21,920 --> 00:37:24,799
Speaker 1: With history as our guide, is uh Santa Rally still

666
00:37:24,840 --> 00:37:29,319
Speaker 1: in the currents? Sure, the Santa Rally has come into

667
00:37:29,400 --> 00:37:34,080
Speaker 1: existing of all years since World War Two, causing the

668
00:37:34,239 --> 00:37:37,160
Speaker 1: SMP to go up by about one point three percent.

669
00:37:37,360 --> 00:37:40,640
Speaker 1: So I would tend to say that, based on Friday's action,

670
00:37:40,719 --> 00:37:43,640
Speaker 1: based on today's futures, that we have a very good

671
00:37:43,760 --> 00:37:48,400
Speaker 1: chance of if Santa Claus Rally. Where do you suppose

672
00:37:48,440 --> 00:37:51,000
Speaker 1: we're going to end the year in terms of percentage

673
00:37:51,520 --> 00:37:56,719
Speaker 1: gains or I should say percentage losses for the broader index? Well,

674
00:37:56,840 --> 00:38:01,360
Speaker 1: it's still gonna be UH one of the ten negative

675
00:38:01,520 --> 00:38:06,239
Speaker 1: years going back to I looked to because that's when

676
00:38:06,400 --> 00:38:10,919
Speaker 1: SMP started computing its sector level indices. So it will

677
00:38:11,080 --> 00:38:15,280
Speaker 1: end up being most likely the third worst year behind

678
00:38:15,400 --> 00:38:18,319
Speaker 1: two thousand and two and two thousand and eight. Uh.

679
00:38:18,440 --> 00:38:22,080
Speaker 1: And interesting, this is the only year since two thousand

680
00:38:22,160 --> 00:38:24,279
Speaker 1: and two in which we had one sector that was

681
00:38:24,360 --> 00:38:29,600
Speaker 1: positive and everybody else negative. What sector was that? That

682
00:38:29,760 --> 00:38:32,480
Speaker 1: was real estate back in O two of four point one,

683
00:38:33,719 --> 00:38:37,200
Speaker 1: very different from energy of more than fifty percent so

684
00:38:37,400 --> 00:38:39,879
Speaker 1: far this year with every other sector in the red.

685
00:38:40,320 --> 00:38:42,839
Speaker 1: And if there's a positive that can be taken from

686
00:38:42,920 --> 00:38:45,440
Speaker 1: this is that the S and P was up nearly

687
00:38:45,520 --> 00:38:50,440
Speaker 1: twent in two thousand and three. Um. Does negative sentiment

688
00:38:50,719 --> 00:38:55,399
Speaker 1: change simply because we turned the calendar to a new year? Well,

689
00:38:55,480 --> 00:38:58,680
Speaker 1: I think you you do get some return to a

690
00:38:58,760 --> 00:39:01,960
Speaker 1: more positive sentiment because in a negative year, you're going

691
00:39:02,000 --> 00:39:04,680
Speaker 1: to have a lot of tax loss selling, and so

692
00:39:05,040 --> 00:39:08,080
Speaker 1: if you continue to see a lot of red, then

693
00:39:08,120 --> 00:39:12,600
Speaker 1: I think that adds to the dampening effect of market performances,

694
00:39:12,960 --> 00:39:16,680
Speaker 1: which then adversary effects his confidence. So I would tend

695
00:39:16,719 --> 00:39:18,920
Speaker 1: to say that, you know, if we start two thousand

696
00:39:18,960 --> 00:39:22,120
Speaker 1: and twenty three on an up note, then I would

697
00:39:22,160 --> 00:39:25,840
Speaker 1: tend to think that that could help to buoy the sentiment.

698
00:39:26,560 --> 00:39:32,080
Speaker 1: Will earnings be better than feared? Well, good question. I

699
00:39:32,160 --> 00:39:35,560
Speaker 1: think the number is Uh. The SMP has in the

700
00:39:35,680 --> 00:39:39,240
Speaker 1: last fifty two out of fifty three quarters has posted

701
00:39:39,440 --> 00:39:44,080
Speaker 1: actual returns that exceeded end of quarter estimates. The only

702
00:39:44,200 --> 00:39:47,640
Speaker 1: difference this time is that we are looking for an

703
00:39:47,800 --> 00:39:51,680
Speaker 1: earnings recession, because the fourth quarter of two thousand and

704
00:39:51,760 --> 00:39:55,600
Speaker 1: twenty two, as well as the first two quarters of three,

705
00:39:56,000 --> 00:39:59,880
Speaker 1: are expected to post year on year declines, and historic

706
00:40:00,280 --> 00:40:04,160
Speaker 1: looking at operating earnings, they have been coincident with the

707
00:40:04,280 --> 00:40:07,960
Speaker 1: start of recessions, whereas with gap earnings they've been a

708
00:40:08,040 --> 00:40:10,960
Speaker 1: bit of a lag. So an earnings recession, can you

709
00:40:11,040 --> 00:40:16,200
Speaker 1: still have a positive year? Yes? Actually, a lot of

710
00:40:16,280 --> 00:40:21,440
Speaker 1: studies have shown that when earnings zag, the market tends

711
00:40:21,480 --> 00:40:25,800
Speaker 1: to zig. The recent being that investors are forward looking

712
00:40:26,200 --> 00:40:30,600
Speaker 1: uh and they are looking across the valley. Expectations are

713
00:40:30,680 --> 00:40:33,480
Speaker 1: we could see earnings up by ten point three percent

714
00:40:33,600 --> 00:40:36,600
Speaker 1: in the fourth quarter of two thousand and twenty three,

715
00:40:36,719 --> 00:40:38,799
Speaker 1: and then up by more than ten percent for all

716
00:40:39,200 --> 00:40:42,440
Speaker 1: of two thousand and twenty four. So I think there

717
00:40:42,640 --> 00:40:45,000
Speaker 1: is a good possibility that once we get past the

718
00:40:45,440 --> 00:40:48,640
Speaker 1: undulations of the first half, that we do end up

719
00:40:49,080 --> 00:40:51,880
Speaker 1: with a positive two thousand and twenty three. Can you

720
00:40:51,960 --> 00:40:54,880
Speaker 1: further break down some of the sectors and the expected

721
00:40:54,960 --> 00:41:00,719
Speaker 1: performance that you're looking for, Well, looking for pretty good

722
00:41:00,800 --> 00:41:06,160
Speaker 1: earnings growth for the consumer discretionary category, one of the

723
00:41:06,760 --> 00:41:10,160
Speaker 1: areas in which we're expecting to see double digit games,

724
00:41:11,000 --> 00:41:15,320
Speaker 1: whereas energy, not surprisingly is expected to post double digit losses.

725
00:41:15,920 --> 00:41:18,920
Speaker 1: UM or I should say, really year on your declines,

726
00:41:19,000 --> 00:41:22,560
Speaker 1: they're still going to post earnings, but the percentage change

727
00:41:23,200 --> 00:41:27,520
Speaker 1: year on year is expected to be down, primarily because

728
00:41:27,680 --> 00:41:31,399
Speaker 1: they're up by about a hundred and six in two

729
00:41:31,480 --> 00:41:35,879
Speaker 1: thousand and twenty two. So really sort of a hodgepodge

730
00:41:35,920 --> 00:41:38,719
Speaker 1: of of where the earnings growth is likely to be seen.

731
00:41:39,120 --> 00:41:41,239
Speaker 1: And we all know the mess that we saw with

732
00:41:41,480 --> 00:41:44,399
Speaker 1: tech this year. Have the moats around some of those

733
00:41:44,640 --> 00:41:50,920
Speaker 1: stronger tech names have they been removed? Well, maybe not removed,

734
00:41:50,960 --> 00:41:54,200
Speaker 1: but certainly drained a little bit. UM. I think it's

735
00:41:54,280 --> 00:41:58,439
Speaker 1: more a question of the enthusiasm, not necessarily the moat

736
00:41:58,560 --> 00:42:00,799
Speaker 1: that has been drained. A lot of these companies still,

737
00:42:01,360 --> 00:42:04,920
Speaker 1: um are very strong in what they do. Uh. The

738
00:42:05,040 --> 00:42:07,960
Speaker 1: question is how much are investors willing to pay for them?

739
00:42:08,239 --> 00:42:11,880
Speaker 1: I mean, this wasn't like two thousand in which investors

740
00:42:11,960 --> 00:42:17,000
Speaker 1: thought that trading at sixty times forward earnings was still attractive. UM.

741
00:42:17,239 --> 00:42:19,759
Speaker 1: I mean we're looking at technology, which is trading in

742
00:42:19,840 --> 00:42:23,840
Speaker 1: the mid to low twenty multiple area. Now, UM, so

743
00:42:24,400 --> 00:42:27,239
Speaker 1: in two thousand and twenty three, tech is expected to

744
00:42:27,400 --> 00:42:31,120
Speaker 1: post only about a three percent earnings increase versus a

745
00:42:31,239 --> 00:42:34,360
Speaker 1: similar number for the SMP five hundred. It says, I

746
00:42:34,440 --> 00:42:39,560
Speaker 1: mentioned before discretionary financials and industrials that are expected to

747
00:42:39,600 --> 00:42:44,640
Speaker 1: post double digit advances. Hey, Sanford, your perspective was sort

748
00:42:44,680 --> 00:42:50,680
Speaker 1: of the poster child for active management. Well, poster child

749
00:42:52,160 --> 00:42:54,840
Speaker 1: maybe in a negative way. UM. If you go to

750
00:42:55,400 --> 00:42:59,480
Speaker 1: uh sp d j I dot com that's the SMP

751
00:42:59,719 --> 00:43:05,040
Speaker 1: Dow Jones indices, you'll see their SPIVA report SMP index

752
00:43:05,280 --> 00:43:11,200
Speaker 1: versus active UH and find that the indexes consistently outperform

753
00:43:11,800 --> 00:43:15,760
Speaker 1: UH the active managers UH, certainly on a large cap basis,

754
00:43:15,800 --> 00:43:18,799
Speaker 1: but also mid and small cap as well. So it's

755
00:43:19,080 --> 00:43:23,000
Speaker 1: it's certainly been a very challenging period for the active managers.

756
00:43:23,320 --> 00:43:26,120
Speaker 1: And just about the minute left, UH, I want you

757
00:43:26,200 --> 00:43:27,759
Speaker 1: to put your account of his head on among the

758
00:43:27,880 --> 00:43:32,279
Speaker 1: data this week, initial jobless claims Thursday, Waiting for the Fed, Um,

759
00:43:33,000 --> 00:43:35,560
Speaker 1: are they going to have to torpedo the jobs market

760
00:43:35,719 --> 00:43:40,879
Speaker 1: until we can signal all clear for for risk assets? Well,

761
00:43:40,960 --> 00:43:44,080
Speaker 1: I think we're gonna see the SMP K Schiller Index

762
00:43:44,160 --> 00:43:47,640
Speaker 1: come in UM lower than last time. I think that

763
00:43:47,680 --> 00:43:50,400
Speaker 1: we're we are going to be UM looking at jobless

764
00:43:50,520 --> 00:43:54,040
Speaker 1: claims UM come up a bit more. I think the

765
00:43:54,120 --> 00:43:57,040
Speaker 1: Fed is going to be looking at two pronged primarily

766
00:43:57,280 --> 00:44:02,839
Speaker 1: looking at the PCE core, the personal consumption expenditure ex.

767
00:44:03,320 --> 00:44:06,520
Speaker 1: Food and energy, because that's their primary read on inflation,

768
00:44:07,040 --> 00:44:09,160
Speaker 1: and at the same time hoping that they don't do

769
00:44:09,239 --> 00:44:13,200
Speaker 1: too much damage to the employment picture at the same time,

770
00:44:13,360 --> 00:44:16,840
Speaker 1: so their focus is inflation, but they hope there's not

771
00:44:16,920 --> 00:44:22,000
Speaker 1: a lot of collateral damage. Where does SMP five hundred

772
00:44:22,480 --> 00:44:30,400
Speaker 1: and the spot here? Yeah, is our estimate UM based

773
00:44:30,520 --> 00:44:34,520
Speaker 1: on c fr A analysts, target price differentials and some

774
00:44:35,120 --> 00:44:40,640
Speaker 1: technical considerations. UM. Tough first half and a better second half. Sam,

775
00:44:40,719 --> 00:44:42,800
Speaker 1: always a pleasure. Thanks very much for joining us this

776
00:44:42,880 --> 00:44:46,759
Speaker 1: Tuesday morning. Sam stove All the chief investment strategist at

777
00:44:46,800 --> 00:44:50,040
Speaker 1: c f r A, And right now I had a

778
00:44:50,760 --> 00:44:55,120
Speaker 1: market open down futures of two SMP five hundred futures

779
00:44:55,280 --> 00:45:02,600
Speaker 1: right now. Up, you're listening to Bloomberg Day break, Markets,

780
00:45:02,719 --> 00:45:05,759
Speaker 1: headlines and breaking news twenty four hours a day at

781
00:45:05,800 --> 00:45:09,719
Speaker 1: Bloomberg dot Com and Bloomberg Business Outland at Bloomberg Quick tap.

782
00:45:09,960 --> 00:45:19,000
Speaker 1: This is a Bloomburn business lass and I'm Karen Moscow

783
00:45:19,120 --> 00:45:21,840
Speaker 1: along with John Tucker, and futures are higher this morning.

784
00:45:21,880 --> 00:45:24,040
Speaker 1: We checked the markets all day long here on Bloomberg

785
00:45:24,080 --> 00:45:26,960
Speaker 1: with SMP futures up about twenty seven points or seven

786
00:45:27,040 --> 00:45:29,759
Speaker 1: tenths of upper cent. Futures up about seven tents of

787
00:45:29,880 --> 00:45:32,680
Speaker 1: upper cent or two hundred twenty four points, and NASDAG

788
00:45:32,719 --> 00:45:34,840
Speaker 1: future is up six tents of upper cent or sixty

789
00:45:34,920 --> 00:45:37,680
Speaker 1: two points ten. Your treasury up one thirty second. You

790
00:45:37,719 --> 00:45:40,040
Speaker 1: have three point seven four percent and they yield on

791
00:45:40,120 --> 00:45:42,920
Speaker 1: the two year four point three three percent. Nine X

792
00:45:42,960 --> 00:45:45,480
Speaker 1: screwed oil is up nine ten percent or seventy cents,

793
00:45:45,520 --> 00:45:48,399
Speaker 1: and eighty dollars twenty five cents of barrel comex gold

794
00:45:48,440 --> 00:45:50,799
Speaker 1: up seven ten percent or two dollars thirty cents. At

795
00:45:50,840 --> 00:45:54,640
Speaker 1: eighteen sixteen fifty announced the euro one point six six

796
00:45:54,760 --> 00:45:57,399
Speaker 1: four against the dollar, the en one thirty three point

797
00:45:57,600 --> 00:46:01,040
Speaker 1: three zero, and that's a Bloomberg bus this flash John

798
00:46:01,400 --> 00:46:03,480
Speaker 1: all right, Karen, thanks a lot five fifties six on

799
00:46:03,560 --> 00:46:07,320
Speaker 1: Well and Street time for our daily Bloomberg Lawbrief, exploring

800
00:46:07,440 --> 00:46:09,960
Speaker 1: legal issues in the news today we're looking at the

801
00:46:10,040 --> 00:46:13,640
Speaker 1: Supreme Court when justice has returned to the bench in January,

802
00:46:13,640 --> 00:46:15,760
Speaker 1: if they're going to hear a case involving a Turkish

803
00:46:15,880 --> 00:46:20,360
Speaker 1: bank owned and controlled by the Turkish government, that maybe

804
00:46:20,520 --> 00:46:24,600
Speaker 1: President Setting Turkey's hoalk Bank is asking the justices to

805
00:46:24,719 --> 00:46:28,680
Speaker 1: dismiss criminal charges against it stemming from an Alige scheme

806
00:46:28,760 --> 00:46:33,040
Speaker 1: to help Iran evade economic sanctions by diverting billions of

807
00:46:33,080 --> 00:46:35,960
Speaker 1: dollars in oil and gas revenue. Ever More, in the

808
00:46:36,000 --> 00:46:39,799
Speaker 1: case Bloomberge June Grasso speaks to Harold Crante, professor at

809
00:46:39,840 --> 00:46:43,759
Speaker 1: the Chicago Kent College of Law. I'll explain why this

810
00:46:43,880 --> 00:46:47,200
Speaker 1: case could be precedent setting. So the turkys Pake evidently

811
00:46:47,600 --> 00:46:52,560
Speaker 1: helped launder somewhere close to twenty billion dollars of Iranian

812
00:46:52,600 --> 00:46:57,040
Speaker 1: oil assets in contravention of our laws against doing business

813
00:46:57,120 --> 00:47:01,040
Speaker 1: with Iran, and so criminal charging robotic. It's the bank

814
00:47:01,160 --> 00:47:03,160
Speaker 1: here in the United States because some of the laundring

815
00:47:03,280 --> 00:47:07,279
Speaker 1: took place within the US financial system. There has never

816
00:47:07,480 --> 00:47:10,879
Speaker 1: been a criminal action brought against a foreign state owned

817
00:47:11,080 --> 00:47:14,120
Speaker 1: enterprise in our history, and this was really the first one,

818
00:47:14,360 --> 00:47:18,160
Speaker 1: and the second Circuit held that there's no law immunizing

819
00:47:18,320 --> 00:47:21,600
Speaker 1: a state owned bank for its commercial activities. The way

820
00:47:21,680 --> 00:47:24,040
Speaker 1: there would be to protect the state diplomat, and so

821
00:47:24,120 --> 00:47:27,000
Speaker 1: the criminal charges could go forward. So this is really

822
00:47:27,120 --> 00:47:30,560
Speaker 1: unprecedented and it's a major change which we have ripple

823
00:47:30,600 --> 00:47:34,920
Speaker 1: effect around the world because usually we treats foreign governments,

824
00:47:35,040 --> 00:47:37,600
Speaker 1: whether they're doing commercial activities or not, in a very

825
00:47:37,719 --> 00:47:40,160
Speaker 1: special way. We have a whole statute of the Federal

826
00:47:40,200 --> 00:47:43,880
Speaker 1: Sovereign Immunities Act which limits when you can even sue

827
00:47:43,920 --> 00:47:47,000
Speaker 1: state owned enterprises. But this would be saying that, well,

828
00:47:47,200 --> 00:47:50,400
Speaker 1: Congress didn't say you can't have a criminal action against

829
00:47:50,480 --> 00:47:52,600
Speaker 1: a state owned enterprise, and so now we have the

830
00:47:52,680 --> 00:47:55,399
Speaker 1: first one and we'll see if the Supreme Court, let's

831
00:47:55,440 --> 00:47:58,080
Speaker 1: just stand. My guess is that it will. But who

832
00:47:58,160 --> 00:48:02,759
Speaker 1: knows what's turkeys argument for why the bank shouldn't be prosecuted.

833
00:48:03,000 --> 00:48:05,520
Speaker 1: First of all, it's unprecedented that there has never been

834
00:48:05,719 --> 00:48:09,640
Speaker 1: this kind of action, and they're extrapolating from the diplomatic

835
00:48:09,800 --> 00:48:14,520
Speaker 1: precedents would suggest that there is diplomatic immunity for its officers,

836
00:48:14,840 --> 00:48:18,200
Speaker 1: and Congress has seen to fit that we cannot prosecute

837
00:48:18,440 --> 00:48:22,200
Speaker 1: diplomats for ordinary crimes, and so they're suggesting that the

838
00:48:22,320 --> 00:48:25,560
Speaker 1: danger would be that the state owned enterprise. You basically

839
00:48:25,800 --> 00:48:29,160
Speaker 1: end up limiting the kind of functional immunity that's given

840
00:48:29,239 --> 00:48:33,800
Speaker 1: to the members of different countries who may be directors

841
00:48:33,840 --> 00:48:37,200
Speaker 1: on the bank or maybe their relatives are working in

842
00:48:37,280 --> 00:48:40,200
Speaker 1: the bank, and so this would chip away at that

843
00:48:40,360 --> 00:48:43,160
Speaker 1: kind of immunity. Why do you think the Supreme Court

844
00:48:43,680 --> 00:48:47,640
Speaker 1: is going to allow the prosecution to go forward? Congress

845
00:48:47,880 --> 00:48:52,600
Speaker 1: didn't precruited, and in the absence of Congressional statute from

846
00:48:52,680 --> 00:48:55,399
Speaker 1: the court, we have to rely upon some other kind

847
00:48:55,440 --> 00:48:59,719
Speaker 1: of analogy, such as diplomatic community to stop the prosecution

848
00:48:59,840 --> 00:49:03,200
Speaker 1: and and to stop the prosecution of a bank for

849
00:49:03,320 --> 00:49:07,759
Speaker 1: its commercial activities seems pretty far stretch from stopping a

850
00:49:07,880 --> 00:49:10,960
Speaker 1: prosecution from a dimple match who has been accused of

851
00:49:11,040 --> 00:49:14,359
Speaker 1: a hidden run or some other criminal offense. And that's

852
00:49:14,440 --> 00:49:18,200
Speaker 1: Harold Crant, a professor at the Chicago Kent College of Law,

853
00:49:18,719 --> 00:49:21,480
Speaker 1: speaking with Bloomberg's June Grasso. He can catch more of

854
00:49:21,560 --> 00:49:24,600
Speaker 1: that interview, plus analysis of the latest legal news by

855
00:49:24,680 --> 00:49:28,879
Speaker 1: subscribing to the Bloomberg Law podcast or downloading the show

856
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Speaker 1: at Bloomberg dot com. Slash Podcasts and attorneys can find

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Speaker 1: go SMP futures twenty six points higher, and that our

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Speaker 1: futures up two hundred twenty. You're listening to Bloomberg day Break.