Speaker 1: Live from the Bloomberg Interactive Berger Studios. This is Bloomberg
Speaker 1: day Break for Tuesday, December seven two. Coming up, the
Speaker 1: shower stocks and China gain as the country continues to
Speaker 1: roll back COVID measures. That's something to lift us futures
Speaker 1: as we close out the last trading week of the year,
Speaker 1: and President Biden declares an emergency in the state of
Speaker 1: New York because of the winter storm. New York GOP
Speaker 1: representative Alex Santos admits he lied about its job experience.
Speaker 1: Plus Democrats called Texas Governor Rabbits actions on migrants of
Speaker 1: dangerous stunt. I'm Michael Barr more ahead, I'm John stash
Speaker 1: Our in sports Red Hot, and that's been at nine
Speaker 1: wins in a row with a win in Cleveland. Mike
Speaker 1: White is back as the Jets starting quarterback. That's all's
Speaker 1: trendyhead on Bloomberg Daybreak on Bloomberg Eliving Free on New York,
Speaker 1: Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston,
Speaker 1: Bloomberg nine sixties and Francisco Sirius x M one nine
Speaker 1: team and around the world. Then Bloomberg Radio dot Com
Speaker 1: and via the Bloomberg Business app. Good morning. I'm John
Speaker 1: Tucker and I'm Karen Moscow and US stock index futures
Speaker 1: are on the rise this morning, and we checked the
Speaker 1: markets all day long here on bloomberg SMP futures up
Speaker 1: twenty seven points or seven tenths of upper cent, DEAF
Speaker 1: futures up six tens of upper cent or two hundred
Speaker 1: eleven points. And as the futures up six tensive upper
Speaker 1: cent er seventy points ten, your treasury up one thirty second.
Speaker 1: You have three point seven four percent. They yield on
Speaker 1: the two year at four point three three percent. NIMEX
Speaker 1: screwed oil is up six ten percent or forty nine
Speaker 1: cents at eighty dollars five cents of barrel comex s
Speaker 1: called up seven tens per cent or eleven dollars seventy
Speaker 1: cents at eighteen fifteen eighty announced. The euro one point
Speaker 1: oh six five two against the dollar, the yen one
Speaker 1: thirty three point one nine, John and Karen, As we
Speaker 1: wait for stocks to begin trading here in the US
Speaker 1: on this short and trading week, Equities in Asia are higher.
Speaker 1: China continues to roll back COVID measures and that is
Speaker 1: boosting sentiment in the region. Let's get the recap from
Speaker 1: Bloomberg Daybreak Asia anchor Brian Curtis. In Hong Kong, Asian
Speaker 1: stocks powered higher on the China news of ditching quarantine rules.
Speaker 1: Traveling consumer good stocks jumped. It was a risk on day,
Speaker 1: with US and European equity futures also higher and the
Speaker 1: dollar lower. Investors also embraced the cooling of a key
Speaker 1: inflation measure in the United States. Oil and gold also bounced.
Speaker 1: Indexes of US, Asian and global stocks still remained down
Speaker 1: about this year. It's the worst annual performance since two
Speaker 1: thousand and eight. In Hong Kong, Brian Turtis Bloomberg day Break,
Speaker 1: Ry Brian, thank you all. And geopolitical news. US China
Speaker 1: tensions are in focus again. The US is criticizing Beijing's
Speaker 1: military drills near Taiwan this week. The National Security Council
Speaker 1: called the exercises provocative and said it will continue to
Speaker 1: help Taiwan defend itself. Last week, US lawmakers agree to
Speaker 1: a spending bill that included two billion dollars and weapons
Speaker 1: funding for Taiwan. And back here in New York, Karen
Speaker 1: nasty bout of winter weather has resulted in twenty eight
Speaker 1: deaths and crippled parts of the state, and now President
Speaker 1: Biden has approved a disaster declaration in New York. Let's
Speaker 1: get the story this morning from Bloomberg's Michael Barr. The
Speaker 1: Buffalo area got at least four ft of snow, and
Speaker 1: moore is expected today. New York Governor Kathy Hukel, we
Speaker 1: have been to a lot of wars together, and this
Speaker 1: blizzard is the one for the ages. Certainly, it is
Speaker 1: the blizzard of the century. Those who died around Buffalo
Speaker 1: were found in cars, homes, and snow banks. Some died
Speaker 1: while shoveling snow. Buffalo Mayor Byron Brown says they are
Speaker 1: also dealing with power outages and lack of heat. I'm
Speaker 1: myself and my family were without power. I can tell
Speaker 1: you at one point the temperature in our home got
Speaker 1: down to about forty degrees. It was very uncomfortable. We
Speaker 1: had to layer up. Mayor Brown says some people have
Speaker 1: been without power since Friday in New York. Michael Barr,
Speaker 1: Bloomberg Daybreak. All right, Michael, thank you are The bad
Speaker 1: weather across the country is also hitting air travel hard,
Speaker 1: and we get that part of the story. Live with
Speaker 1: the Bloomberry. Steve Rappaport, it's Steve, good morning, Good morning,
Speaker 1: Karen and John. Airlines are scrambling to catch up after
Speaker 1: a winter storm canceled thousands of flights during the Christmas
Speaker 1: travel rush. The flight tracking website flight of Where shows
Speaker 1: more than twenty hundred flights grounded today. Southwest was the
Speaker 1: worst hit yesterday, accounting for nearly seventy of the cancelations nationwide.
Speaker 1: Southwest Senior director Jim McVeigh, as the storm continued to
Speaker 1: sweep across the country, the cancelations just compiled one after another,
Speaker 1: and as a results, we end up with flight cruise
Speaker 1: and airplanes that are out of place and not in
Speaker 1: the cities that they need to be in to continue
Speaker 1: to run our operations. McVeigh says the airline is doing
Speaker 1: everything it can to write the current challenges. Southwest stock
Speaker 1: is down about three percent in pre market trading Live
Speaker 1: in New York. I'm Steve Rappaport, Bloomberg Daybreak, Steve, Thanks
Speaker 1: and turning back to the markets were closing out the
Speaker 1: last trading week of a dismal year for equities. SMP
Speaker 1: is down more than harder hit. His been the tech
Speaker 1: heavy NASDAG, which has lost a third of its value.
Speaker 1: Jonathan Gallab is the chief US equity strategist at Credit Sweeze.
Speaker 1: I think that this problem that we've had in tech
Speaker 1: is not a sentiment problem. It's an earnings problem, and
Speaker 1: it doesn't last for three or four quarters. It last
Speaker 1: for six or eight quarters. And a lot of these
Speaker 1: big tech companies that two or three years ago we
Speaker 1: said they have modes, they're impenetrable, and we talked in
Speaker 1: those terms. Um, a lot of those companies are are
Speaker 1: getting closer to total addressable market, whether that's in handsets
Speaker 1: or advertising or other things like that. Jonathan gallabat Credit
Speaker 1: Swiss thinks the resilient consumer will keep the U s
Speaker 1: out of recession. Well, John once a pandemic Darling. Peloton
Speaker 1: disappointed investors last month with the holiday forecast that missed estimates.
Speaker 1: Now it has a plan to help recoup some of
Speaker 1: those losses. We get the details TROUM Bloomberg's Erika Herschowitz
Speaker 1: Peloton at least the statement Monday's saying it will begin
Speaker 1: offering refurbished bikes at discounts of up to five hundred
Speaker 1: dollars below new model prices. The price tag on a
Speaker 1: certified refurbished model will range from eleven forty five dollars.
Speaker 1: That's three hundred to five hundred dollars below current prices.
Speaker 1: The refurbished bikes come with the same twelve month limited
Speaker 1: warranty as the new ones and include delivery and set up.
Speaker 1: The company's All Access membership is sold separately. Shares a
Speaker 1: peloton or down this year, Erica Hurwitz, Bloomberg Radio thanks
Speaker 1: Erica Shares of AMC Entertainment. They're continuing their slide. This
Speaker 1: morning they were down another seven percent, enter falling sevent
Speaker 1: percent on Thursday and Friday. The company is proposing to
Speaker 1: convert preferred equity units into common shares, along with a
Speaker 1: ten to one reverse stock split. Well, the price of
Speaker 1: oil also on the rise this morning. John China has
Speaker 1: taken more steps to unwind it's COVID zero policy, which
Speaker 1: could increase demand. Straight ahead, we have your latest local headlines,
Speaker 1: plus a check of sports, and this is Bloomberg the
Speaker 1: Boomberg Weather for it today becoming partly study the high
Speaker 1: temperature topic out at about thirty five degrees time. Down
Speaker 1: for a look at some of the other stories making
Speaker 1: news in New York adds around the world, and for
Speaker 1: that we're joined by Bloomberg's Michael Barr Michael, good Morning,
Speaker 1: Good Morning John. Representative Elec George Santos of New York
Speaker 1: admitted that he lied about his job experience and college
Speaker 1: education during his successful campaign for a seat in the
Speaker 1: US House. In an interview with The New York Post
Speaker 1: in w ABC radio, the Long Island Republicans said, my
Speaker 1: sins here are embellishing my resume. I'm sorry. A lot
Speaker 1: of people overstayed in their resumes or um twist a
Speaker 1: little bit, or ingrandjate themselves. I'm not saying I'm not
Speaker 1: guilty of that. I'm just saying I've done so much
Speaker 1: good work in my career. The New York Times raised
Speaker 1: questions last week about the life story that Santos had
Speaker 1: presented during his campaign, including that he had worked for
Speaker 1: City Group and Goldman Sachs. Neither company could find any
Speaker 1: records verifying that. In Connecticut, the twenty two year veteran
Speaker 1: of the North Haven Fire Department has died from injuries
Speaker 1: he sustained while working ablaze at a four family home.
Speaker 1: The department identified the firefighter is forty six year old
Speaker 1: mattheist Wortz. The Connecticut State Police are investigating the cause
Speaker 1: of the blaze, which displaced thirteen residents on Christmas night.
Speaker 1: The Biden administration is accusing Texas Governor Gregg Abbot of
Speaker 1: endangering lives all in the name of politics. Three buses
Speaker 1: of migrants traveled from Texas and were left in the
Speaker 1: bitter cold outside Vice Presidents Kamala Harris's official residence. Ukraine's
Speaker 1: foreign minister has said that his nation wants a summit
Speaker 1: to end the war, but he doesn't anticipate Russia taking part.
Speaker 1: The Metro Kuleba says that his government wants a peace
Speaker 1: summit within two months at the United Nations with the
Speaker 1: Secretary General Antonio Gutera as mediator. Every war ends as
Speaker 1: a result of uh the actions taking at the battlefield
Speaker 1: and at the negotiating table. But the balance of what
Speaker 1: will be one on the battlefield and what will be
Speaker 1: one at the table it remains to be seen. Foreign
Speaker 1: Minister Calai But also told the Associated Press that Russia
Speaker 1: must face a war crimes tribunal. Global News twenty four
Speaker 1: hours a day on air and on Bloomberg Quicktake, powered
Speaker 1: by more than hundred journalists, analysts more than a D
Speaker 1: twenty countries. Michael Barr and this is Bloomberg, John, Michael,
Speaker 1: thank you, And it's a five a way to Wall
Speaker 1: Street time. But the sports were court being brought to
Speaker 1: you by your trime state. How do you dealer a
Speaker 1: good morning? John Stashour, Good morning, John. The Jets have
Speaker 1: four quarterbacks. They've used all four. They started three. Zack
Speaker 1: Wilson's gone from first string, down to third and up
Speaker 1: to second, back to first. Now he's back to third
Speaker 1: string or maybe fourth, and he'll be inactive for the
Speaker 1: Jets Sunday in Seattle. Mike White has recovered from his
Speaker 1: injured ribs. He'll start with Joe Flacco, the backup Jets got.
Speaker 1: Robert Sala asked where things stand with Wilson. I still
Speaker 1: think he's got a future here. I still think he's
Speaker 1: gonna be a really good quarterback. Uh. He just he
Speaker 1: needs time to just kind of sit back and continue
Speaker 1: the development that we're trying to rekick start, if you will,
Speaker 1: after the New England game. But I still have him
Speaker 1: in our future, in our in our plans. This runs
Speaker 1: contrary to report on Fox that the Jets have decided
Speaker 1: to move on from Wilson after this season. The Colts
Speaker 1: with their third different starting QB and one time Super
Speaker 1: Bowl hero Nick Bole through three interceptions, the Chargers won
Speaker 1: twenty to three. That clinches a NSC wild card for
Speaker 1: the Chargers. So there's one a FC spot remaining with
Speaker 1: Miami leading the Jets, Patriots, and Steelers by one game.
Speaker 1: Dolphins QB two A ton of alowas and concussion protocol
Speaker 1: as he was earlier this season, the Giants were walking
Speaker 1: last night. They host Indianapolis on Sunday. A Giants win
Speaker 1: and they're in the playoffs. Denver four and eleven just
Speaker 1: lost by thirty seven. The Broncos fired coach na Fandel Hacket.
Speaker 1: Ninth straight win for the Red Hot Nets. Both Kevin
Speaker 1: Durant and Kyrie Irving scored thirty two and seventeen win
Speaker 1: at Cleveland that has the Nets only two games out
Speaker 1: of first place in the East. Nick looked in the
Speaker 1: three games lusing streak. Tonight there in Dallas, the Rangers
Speaker 1: home for Washington. The Islanders host Pittsburgh and Seaton Hall
Speaker 1: is a big East game at Marquette. John stashually were
Speaker 1: Bloomberg Sports, John, all right, thanks so lun John and
Speaker 1: the Bloomberg Sports Report, brought to you by Audie. Don't
Speaker 1: let someone else drive off of the Audi model you've
Speaker 1: always wanted to visit your local try state Audi dealer
Speaker 1: to get behind the wheel of yours today, or visit
Speaker 1: Autie Offers dot com for more information. Ahead of the
Speaker 1: market opened on Wall Street Dow futures right now there
Speaker 1: are up two D fourteen points, the ruse of about
Speaker 1: seven tenths of a percent, smp emanate futures twenty seven
Speaker 1: points higher, and that as that e many futures are
Speaker 1: seventy points higher. Volatility index the VIX slightly elevated at six.
Speaker 1: You're listening to Bloomberg Game Break live from coast to coast,
Speaker 1: from New York to San Francisco, Boston to Washington, d C.
Speaker 1: Nationwide on Sirius examp of Bloomberg Business app and Bloomberg
Speaker 1: dot Com. This is Bloomberg Daybreak and good morning. I'm
Speaker 1: John Tucker. Let's take a moment now to look at
Speaker 1: the outlook for European banks in the New Year. Two
Speaker 1: was a year dominated by central bank policy impacting financial
Speaker 1: services companies all across Europe and the world, and it
Speaker 1: looks like we could see more of the same in
Speaker 1: the new year. Inflation and energy dominate the debate in Europe,
Speaker 1: and both our top mine for the CEO of a
Speaker 1: sock Jen Bloomberg, Dandy Burger, sat down with a conversation
Speaker 1: with fred De Kudea to discuss the outlook for sock
Speaker 1: Jen and the banking industry as a whole. So let's
Speaker 1: listen in now to that conversation. Are you concerns that
Speaker 1: as we look at the likelihood of a European recession,
Speaker 1: that this is a reap eat of two thousand, repeat
Speaker 1: of Fuche where they're going to have to hike into
Speaker 1: a recession and then quickly turn around. And I'm more positive,
Speaker 1: and our central scenario is a kind of yes, slow
Speaker 1: economy because of the increase of interest rate, but not
Speaker 1: a recession like the one we experienced into thousand and nine.
Speaker 1: First of all, for the starting point is pretty good.
Speaker 1: The we just see no deterioration of the cost of risk.
Speaker 1: The financial sector is in good shape able to finance
Speaker 1: the economy. So yes, the central banks want to fight
Speaker 1: against inflation, it makes sense, But I think we are
Speaker 1: seeing at this stage some signs of slow down of
Speaker 1: the pace of inflation. I'm sure that the central banks
Speaker 1: will carry on monitoring all the parameters and the economies
Speaker 1: to to caliber rightly their monetary policy. What is being
Speaker 1: done is needed. But again I don't think that we
Speaker 1: are facing the same kind of singer. There's a lot
Speaker 1: of uncertainty. External shocks can create the problem, let's face it.
Speaker 1: But in the absence of an external shock we are having,
Speaker 1: mind a slowdown. But which is that we can absorb?
Speaker 1: So what sort of shock are you concerned about? What
Speaker 1: we hit the level of changing things for you to
Speaker 1: erase that optimism, you know, geopolitical crisis, an evolution of
Speaker 1: the conflict in Ukraine. Just if you wish the way
Speaker 1: we will fare the winter and effectively with perhaps hope
Speaker 1: free temperatures which are okay, which we mean reserves, gas
Speaker 1: reserves being preserved as much as possible will help for
Speaker 1: the next twelve months in terms of gas prices. So
Speaker 1: there are many parameters which can play a role in
Speaker 1: the in the invlation. Wage evolution. Also at this stage
Speaker 1: I see also companies which are trying to avoid entering
Speaker 1: into a cycle where wages are increasing too much, so
Speaker 1: they want to preserve the future. So again every every
Speaker 1: month where we'll see how it goes. What about corporate Europe,
Speaker 1: do they have the strength to sustain again the wage pressure,
Speaker 1: these cost pressures. But at the same time, as we're
Speaker 1: discussing an e CV which continues to hike interest rates
Speaker 1: so higher the cost of capital becomes higher. In corporate Europe,
Speaker 1: we stand that overall, yes, I think so. Of course
Speaker 1: there will be differences. Some companies will not make it,
Speaker 1: depending on their leverage, their competitive position. But so farward
Speaker 1: I'm is seeing is actually companies on one end which
Speaker 1: have been able to adapt. Look at the evolution of
Speaker 1: the consumption of electricity or even gas. They are making
Speaker 1: progress under the pressure to reduce their they are the
Speaker 1: usage of facite energy, they improve their efficiency. Most of
Speaker 1: them also, I think, have been able to pass in
Speaker 1: their prices the increase of the cost of and j wages.
Speaker 1: So again, that's where it's very important in my mind
Speaker 1: to see whether we are entering and cycled and normally
Speaker 1: progressing normalization of inflation, and I think it should be
Speaker 1: fine or unfortunately, yes, inflation stays, and then it might
Speaker 1: be more difficult because at some point the consumer will
Speaker 1: not be able to absorb the price increase. So jury
Speaker 1: is out. The coming months will be critical, but there
Speaker 1: is a path for something which is manageable. I think
Speaker 1: these coming months are also going to be some of
Speaker 1: your last at sock Gen. I mean you've now seen
Speaker 1: the longest tenure of of any banking chief in Europe.
Speaker 1: As you prepare for this economic environment, You've had to
Speaker 1: prepare the bank for a lot. What does preparation look
Speaker 1: like this time around it? As you get ready to
Speaker 1: step down from the from the helm, well, I must say,
Speaker 1: my short term agenda is precisely to ensure that that
Speaker 1: we live a bank in good shape to my success,
Speaker 1: what does that mean? Complete the job in terms of
Speaker 1: strategic project. Because this product jacks the merger of our
Speaker 1: two French networks, The acquisition of this plan will bring
Speaker 1: benefits which are independent on the economy. On the economic
Speaker 1: cat look, we will bring the Scenergy's revenues in cost
Speaker 1: whatever the environment is. It's a way to of course
Speaker 1: reinforce the business model. The second element, of course, is
Speaker 1: to ensure that we are entering this and certain environment
Speaker 1: with the maximum of provision. We will end up to
Speaker 1: and twenty two with a level of excente provision within
Speaker 1: our jargon you know as one as two higher than
Speaker 1: the peak of the covet. It's a scient A general
Speaker 1: CEO Frederick o'deo speaking with Bloomberg Stanley Burger is not
Speaker 1: looked for the new year. You can cage the full
Speaker 1: conversation online at Bloomberg dot com. Five eighteen of law
Speaker 1: Street and still in a Bloomberg daybreak, we check on
Speaker 1: markets and bring you the latest the business, economics and finance.
Speaker 1: I'm John Tucker. This is Bloomberg Markets headlines and breaking
Speaker 1: news twenty four hours a day at Bloomberg dot com,
Speaker 1: the Bloomberg Business Outland at Bloomberg Quick Tape. This is
Speaker 1: a Bloomberg Business lash And I'm Karen Moscow along with
Speaker 1: John Tucker. And equities are arising with a dollar declines,
Speaker 1: a maid positive sentiment from China's rollback of COVID isolation
Speaker 1: measures and the cooling of a key inflation gauge in
Speaker 1: the US. And we checked the markets all day long
Speaker 1: here on Bloomberg with SMP futures up about twenty eight
Speaker 1: points or seven tenths of uppercent. Down future is up
Speaker 1: about seven tenths of upper cent or two hundred nineteen
Speaker 1: points and Nasdack futures up six tents of uppercent or
Speaker 1: seventy one points. The decks in Germany's up sixtents of
Speaker 1: uppercent ten. Your treasury up one thirty second. You have
Speaker 1: three point seven four percent. They yield on the two
Speaker 1: year four point three three percent. Nimex screwed oil is
Speaker 1: up about nine tenths of upper cent or sixty eight
Speaker 1: cents at eighty dollars twenty four cents of barrel comics
Speaker 1: gold up seven tents of upper cent or eleven dollars
Speaker 1: seventy cents. Eighteen fifteen eighty announced the euro one point
Speaker 1: six six one against the dollar. British found one point
Speaker 1: to zero six three, and that's a bloomberg business flash
Speaker 1: Shall Here's Michael Barr with more on what's going on
Speaker 1: around the world. Unchael, Good morning, Good morning, Karen. President
Speaker 1: Biden has approved New York's emergency electoration as the death
Speaker 1: toll from a pre Christmas blizzard that paralyzed the Buffalo
Speaker 1: area and much of the country has risen to twenty eight.
Speaker 1: The dead have been found in their cars, homes, and
Speaker 1: in snow banks. Meanwhile, thousands of flights were canceled or delayed,
Speaker 1: and more are scrapped for today. South Korea sent drones
Speaker 1: across the border into North Korea. It's an unprecedented tit
Speaker 1: for tat military move after Kim joan UN's regime dispatched
Speaker 1: five unmanned aerial vehicles into its air space. Monday night football,
Speaker 1: the Chargers beat the Colts twenty three in the NBA.
Speaker 1: The nets one Global News twenty four hours a day
Speaker 1: on air hand on Bloomberg Quick Take, powered by more
Speaker 1: than twenty seven hundred journalists and analysts more than twenty countries.
Speaker 1: Michael Barr, this is Bloomberg, John, Michael, thank you. It
Speaker 1: is now five twenty three on Wall Street. I'm John Tucker.
Speaker 1: This is Bloomberg Daybreak. The stocks are getting a boost
Speaker 1: this morning, and where that China is removing its last
Speaker 1: COVID restrictions. Let's take a deeper dive into this story
Speaker 1: this morning with Bloomberg reporter Alan Juan, who joins us
Speaker 1: this morning from Shanghai. Alan, thanks for being with us,
Speaker 1: appreciate it. What can you tell us about what China
Speaker 1: is doing? From January eight, China is no longer going
Speaker 1: to require inbound visitors to quarantine at the hotels anymore.
Speaker 1: I mean, basically, it's getting rid of policy that's curb travel,
Speaker 1: hurt economy, and left the country actually from the rest
Speaker 1: of the world that's said, it's still going to require
Speaker 1: travel arrivals to to show negative PCR test results taken
Speaker 1: within forty hours of departure. But you know something that's
Speaker 1: nothing competible we have right now. I mean, right now
Speaker 1: it's like about five days of the whole took quarantine
Speaker 1: and another three days at a home monitoring. UM. I myself,
Speaker 1: I've done two long quarantines after leaving China coming Act
Speaker 1: one for fourteen days and one for ten days, and
Speaker 1: I tell you it's it's pretty brutal. So I'm actually
Speaker 1: looking forward to this change in policy. This mean COVID,
Speaker 1: uh the outbreak has gotten better in China or the
Speaker 1: government's just throwing in the towel. Now the COVID is
Speaker 1: not getting better, um and maybe Peaking and Beijing, Shanghai,
Speaker 1: we're still in the midst of it. Uh So right
Speaker 1: now we're giving about three or four thousand, officially three
Speaker 1: or four cases of the day, which sort of flies
Speaker 1: in the face of everything we're seeing on the ground
Speaker 1: and what some of the provinces of reporting like, for example,
Speaker 1: Judge and Province, which is actually Shanghai, reported one million
Speaker 1: cases and expects another million more before it peaks. And
Speaker 1: what we do. What we also know is that about
Speaker 1: the eighteen percent almost two and fifteen million people have
Speaker 1: already been infected and acts according to the China's National
Speaker 1: Health Commission. UH this was for the minutes of one
Speaker 1: of their meetings. Have they given in any indication that
Speaker 1: they could go back to the restrict of COVID policies? No,
Speaker 1: I I think it's over. I did. China has dismantle
Speaker 1: the whole apparatus right now, you know, there's I'm just
Speaker 1: I'm stunning how fast everything has occurred. Right now, there's
Speaker 1: no there's no longer a need to get any kind
Speaker 1: of PC artists, and even if you want to want
Speaker 1: to get one, it's kind of hard to find. I
Speaker 1: think we've gone in the other direction, which is basically, UM,
Speaker 1: you know, let it fly. Yeah, Well, what next at
Speaker 1: this point? I mean, they're still doing monitoring, are they not? UM?
Speaker 1: You know, China is UM. You know, they're they're trying
Speaker 1: to mitigate some of these UM. Illnesses and deaths right
Speaker 1: right now, they're they're downgrading the management of COVID zero
Speaker 1: from highest level to the second highest, meaning that they're
Speaker 1: they're they're saying that COVID isn't as bad as people
Speaker 1: think people initially thought as being treated now more like
Speaker 1: the flu or some of some kind of cold. But
Speaker 1: they're also pledging into increase I see you beds, increase
Speaker 1: the supply of a life saving equipment like ventilators, and
Speaker 1: also they're going to retrofit some of these quarantine for
Speaker 1: quaranty of facilities. It's the hospitles that can handle COVID patients. Hey,
Speaker 1: what has been the the overall impact on the Chinese economy?
Speaker 1: Only get like twenty seconds left, Okay, it's been it's
Speaker 1: been horrendous. I mean, right this year, a lot of
Speaker 1: economists estimated growth roughly, which is like on the lowest
Speaker 1: in decades, and normally you get about you know, five
Speaker 1: six five percent every year, and that's what they're predicting.
Speaker 1: Connection or more so, it's been devastating for the economy.
Speaker 1: It's been devastating for a lot of businesses that had
Speaker 1: to sort of impose these closed loops in order to
Speaker 1: come up business and most importantly you know it's it's
Speaker 1: it's her summer sentiment. Okay, Alan, We're gonna have to
Speaker 1: leave it there, Bloomberg's Alan wand thanks for joining us
Speaker 1: from Shanghai just to hand top stories. But first a
Speaker 1: look at the Bloomberg weather for like cloudy, this will
Speaker 1: be drifting through the Tristead area for while this morning,
Speaker 1: but eventually it moves out him will see sunshine developed
Speaker 1: later in the day. Temperatures will be close to thirty
Speaker 1: five tonight, generally clear, sky slows overnight thirty Tomorrow we
Speaker 1: should be mostly sunny. Hi's reaching partly cloudy thirty to
Speaker 1: thirty five tomorrow night, turning mile their Thursday, but sunshine
Speaker 1: has a reach forty five to fifty. I'm Rob Carolyn
Speaker 1: with your three day forecast on Bloomberg eleven three oh
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York.
Speaker 1: Bloomberg E Living Freedom to Washington, d C, Bloomberg ninety
Speaker 1: one to Boston, Bloomberg one O six one does San Francisco,
Speaker 1: Bloomberg sixty to the Country Sirius xm ch A one
Speaker 1: nineteen and around the globe. The Bloomberg Business app and
Speaker 1: Bloomberg Radio dot com. This is Bloomberg Daybreak and we
Speaker 1: are coming up to five thirty on Wall Street. Good morning,
Speaker 1: I'm Ter in Moscow and John Tucker. We're being brought
Speaker 1: to you by your daily reminder from Innovation Refunds to
Speaker 1: apply for a payroll tax refund if you're smaller and
Speaker 1: medium sized business was impacted by COVID. Nineteen Innovation Refunds
Speaker 1: clients already claimed over two billion dollars in payroll tax refunds.
Speaker 1: Get started at Get Refunds dot com. And we're just
Speaker 1: about four hours away from the open of US trading.
Speaker 1: Let's get you have to date on the news you
Speaker 1: need to know at this hour. US features and stocks
Speaker 1: overseas are higher this morning. The boost and sentiment comes
Speaker 1: as China scraps more COVID rules now, Beijane plans to
Speaker 1: and it's quarantine rules early next month. Bloomberg Daybreak Asia
Speaker 1: anchor Brian Curtis has more from Hong Kong. This marks
Speaker 1: the end of China's three years of COVID isolation. People
Speaker 1: arriving in China will only need a negative COVID test
Speaker 1: within forty eight hours. Of departure. Up until now, arrivals
Speaker 1: had to quarantine for eight days. The government said it
Speaker 1: would handle visa applications for foreigners for everything from business
Speaker 1: and study to family reunions, and outbound tourism will also
Speaker 1: resume quickly. This could be very good for Europe and
Speaker 1: other destinations. Travel and consumer good stocks jumped in Hong Kong.
Speaker 1: Brian Curtis Bloomberg Gay Break thanks Brian Stocks and Shanna
Speaker 1: Game more than one percent overnight. That's giving a lift
Speaker 1: to US futures as we closed out the last trading
Speaker 1: week of the year. It's been a dismal two for
Speaker 1: bowls with the SMP nive hundred downboard. But Credit Squeez,
Speaker 1: the US equity strategist out that gallup seems a rebound
Speaker 1: for next year. If you do have oil lift off
Speaker 1: and then you actually get some upside in the more
Speaker 1: commodity sensitive stuff like the MP name and the service names,
Speaker 1: the sector is going to be a really big surprise.
Speaker 1: It's absolutely topic. That's Jonathan Gallub at Credit Sweez. He
Speaker 1: predicts the SP five will close ATTI next year. Well,
Speaker 1: another major story we're following this morning, John the bad
Speaker 1: weather continuing to hamper air travel across the country. We
Speaker 1: get the latest live at the Bloombergy Steve Rappapore. It's Steve,
Speaker 1: good morning, Good morning, Karen and John. It's a good
Speaker 1: thing Sam it doesn't fly Southwest, Otherwise he may have
Speaker 1: never left the North Pole. The account the airline accounts
Speaker 1: for roughly sevent of cancelations nationwide yesterday. Southwest stock is
Speaker 1: down about three percent in pre market trading. Senior director
Speaker 1: Jim McVeigh explains the storm caused a ripple effect, leaving
Speaker 1: the airline to play catch up. As the storm continued
Speaker 1: to sweep across the country, the cancelations just compiled one
Speaker 1: after another, and as a results, we end up with
Speaker 1: flight crews and airplanes that are out of place and
Speaker 1: not in the cities that they need to be in
Speaker 1: to continue to run our operations. McVeigh says Southwest is
Speaker 1: doing everything it can to write the challenges it faces.
Speaker 1: Live in New York. I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve,
Speaker 1: thank you. The price of oil is on the rise
Speaker 1: this morning. China has taken more steps to unwine it's
Speaker 1: COVID zero policy, which could increase demand and freezing weather
Speaker 1: across the US has led to refinery closures in the
Speaker 1: Texas Gulf Coast area. Checking oil right now and I'm
Speaker 1: nex screwed. Is up one straight ahead your latest local
Speaker 1: headlines plus a check of sports and this is bloom work.
Speaker 1: Thanks scaring one wall streets. Time to bring in Michael
Speaker 1: Barr with more. What else is going on in New
Speaker 1: York cans around the world, Ton, Thank you very much, Sarah.
Speaker 1: President Biden has approved a state of emergency as a
Speaker 1: winter nightmare continues in western New York. At least twenty
Speaker 1: eight people have died in the Buffalo area. New York.
Speaker 1: Governor we still have scores and scores of vehicles that
Speaker 1: were abandoned when people left during the storm. Governor Cathy
Speaker 1: Hoco called it the blizzard of the century. Representative elect
Speaker 1: George Santos admitted he did not tell the truth about
Speaker 1: his job experience and college education during his successful campaign
Speaker 1: for her House seat. The Long Island Republicans spoke in
Speaker 1: an interview with City and State airing on ABC seven
Speaker 1: about questions on his campaign website that he was Jewish.
Speaker 1: I owe his joke. I'm Catholic, but I'm also Jewish.
Speaker 1: Uh and I've made that joke is growing up. I
Speaker 1: grew up fully aware that my grandparents were Jewish, came
Speaker 1: from from a Jewish family, and they were refugees to Brazil,
Speaker 1: and that was always the story I grew up with,
Speaker 1: and I've always known it very well. Santos says he
Speaker 1: campaigned talking about the people's concerns, not his resume. The
Speaker 1: Biden administration is calling out the governor of Texas, saying
Speaker 1: it was a cruel and dangerous stunt. Bus load the
Speaker 1: migrants arrived in Washington, d C. On Christmas even sixteen
Speaker 1: degree weather without warning, at the official residents of Vice
Speaker 1: President Kamala Harris. Ukraine's foreign minister is calling for a
Speaker 1: peace sumone at the u N to end the war.
Speaker 1: Dmitro Culeba, speaking to the Associated Press, as the summit
Speaker 1: should be with the u N Secretary General as mediator.
Speaker 1: We think that the best the United Nations could be
Speaker 1: the best venue for holding this uh this summit, because
Speaker 1: this is not about making a favor to a certain country.
Speaker 1: This is really about bringing everyone on board. Foreign Minister
Speaker 1: Kalamba Global News twenty four hours a day on a
Speaker 1: rand on Bloomberg Quittake powered by more hundred journalists and
Speaker 1: analysts more than twenty countries. Michael bar this is Bloomberg, John, Michael,
Speaker 1: thank you. It's now four of Wall Street time for
Speaker 1: the Sports Report being brought to you by a tri
Speaker 1: state out of the Hank Morning once again to John Stashower.
Speaker 1: Good morning John. Earlier this season than nets where I
Speaker 1: mast started one in five, nine and eleven, they fired
Speaker 1: the coach, that was the whole, Kyrie Irving solo with
Speaker 1: the that's just one of Cleveland one seventeen, both Kyrie
Speaker 1: and Kevin Durant scored thirty two points. They combined to
Speaker 1: make twelve of nineteen three pointers of the nets of
Speaker 1: one nine in a row thirteen and fourteen. Their coach,
Speaker 1: Jacques Vaughn. We came back as a group, we kind
Speaker 1: of classed to each other that it was going to
Speaker 1: be about basketball and um, hopefully not let anything interfere
Speaker 1: any outside noise, uh interfere with that. And our guys
Speaker 1: have done an unbelievable job of protecting each other and
Speaker 1: making this thing about basketball. That's way tomorrow. Atlanta Nixer
Speaker 1: in Dallas Tonight Monday night, football Chargers beat the Colts
Speaker 1: twenty to three. L as in the playoffs. One spot
Speaker 1: left in the a f C was slumping Miami, leading
Speaker 1: the Jets, Patriots, and Steelers by one game. The Dolphins
Speaker 1: visit the Path Sunday, Miami QB two A ton of
Speaker 1: below is back in concussion protocol. The Jets Sunday visit Seattle.
Speaker 1: Mike White returns as starting QB is injured, ribs having hell.
Speaker 1: That's also a big game for the Seahawks. We're trying
Speaker 1: to make the NFC playoffs, as are the Giants. They
Speaker 1: are in where the home win Sunday over Indianapolis. Daniel Hackett,
Speaker 1: unable to complete his first season as coach in Denver,
Speaker 1: fired with the Broncos four and eleven. The hold up
Speaker 1: in the Carlos Korea contract is an injured ankle that
Speaker 1: dates back to two thousand and fourteen. The mettre said
Speaker 1: to be trying to restructure the deal make it not
Speaker 1: all guarantee. The feeling is Korea will still become a
Speaker 1: John Stashward Bloomberg Sports done all right, Thanks so Lane
Speaker 1: right now. DALLA futures up two hundred twenty eight points,
Speaker 1: SMP futures up eight, but NAK futures seventy two points higher.
Speaker 1: This is Bloomberg. The Bloomberg Sports Report was brought to
Speaker 1: you by Audie. You don't let someone else drive off
Speaker 1: of the Audi model. You've always want to visit your
Speaker 1: local Try and State Audie dealer to get behind the
Speaker 1: wheel of yours today, or visit Autie Offers dot com
Speaker 1: for more information. It is now five thirty six down
Speaker 1: Wall Street, time for the Bloomberg Tri State Business Report.
Speaker 1: Here with that is Gina Servetti. The former Wellington Hotel
Speaker 1: is reportedly changing hands. The New York Post reports that
Speaker 1: Xtel is paying more than ninety four million dollars to
Speaker 1: buy the leasehold of the former Wellington from b D Hotels,
Speaker 1: and that plans might include a significantly larger building for
Speaker 1: the site at Seventh Avenue and West fifty five in Manhattan.
Speaker 1: Lions Gates new million dollar production studio for Newark could
Speaker 1: be in line for as much as a hundred million
Speaker 1: in state subsidies. That's what the Asbury Park Presses reporting,
Speaker 1: saying the incentives are part of a development deal approved
Speaker 1: last week. It's New Jersey's second major movie and TV
Speaker 1: production project getting the green light this year, following Netflix,
Speaker 1: which plans to build a new studio at the form
Speaker 1: or side of Fort Monmouth, and New Jersey based Harbor
Speaker 1: Freight Tools already has more than th hundred locations around
Speaker 1: the country. Now it's expanding further in its home state.
Speaker 1: And j dot com reports the family owned hardware chain
Speaker 1: will open a new store in Deptford, bringing its New
Speaker 1: Jersey store count to almost thirty locations. That's the Bloomberg
Speaker 1: Tri State Business Report on Genus Servetti. All right, thanks
Speaker 1: seven on Wall Street Time down for the Bloomberg Green Report,
Speaker 1: and well that here's Bloomberg's Jeff Bellinger. The days of
Speaker 1: so called forever chemicals, or PIFAs are numbered at three M.
Speaker 1: The big conglomerate is dealing with regulatory pressure and lawsuits
Speaker 1: over the substances. It announced last week that it will
Speaker 1: stop making the chemicals and discontinue their use in products
Speaker 1: by the end of the move by three marks historic
Speaker 1: break with an entire class of chemicals that were first
Speaker 1: created in researching the atomic bomb during World War Two.
Speaker 1: They helped three M develop hundreds of different products over
Speaker 1: more than seventy years. Now, things such as Scotch guard,
Speaker 1: fire fighting foam and other products are potential liabilities for
Speaker 1: the company. Three M CEO Mike Roman acknowledges increased customer
Speaker 1: unease over p fos and says the company does not
Speaker 1: see a viable business in the future. He says the
Speaker 1: decision will allow three M to move into other higher
Speaker 1: growth opportunities. He says it is too early to discuss
Speaker 1: whether plans that manufacture p fos will be repurposed. Jeff Bullinger,
Speaker 1: Bloomberg Radio. All right, thanks a lot, Jeff, and we
Speaker 1: have green on the screen ahead of the cash open
Speaker 1: on this Tuesday morning. Down futures right now two points
Speaker 1: that's a rise of about seven tenths of a percent
Speaker 1: this morning. And the SMP emniate futures twenty eight points higher,
Speaker 1: that's up seven tenths of a percent. The NASAK futures
Speaker 1: right now seventy one points higher, that is up six
Speaker 1: tenths of a percent. And stay with us. Just ahead,
Speaker 1: we'll get a preview of the trading day ahead with
Speaker 1: Sam Stovall, the chief investment strategist at c f r A.
Speaker 1: This is Bloomberg Markets, headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot com. The Bloomberg Business
Speaker 1: at and at Bloomberg quicktape, this is a Bloomberg business
Speaker 1: lash and I'm Karen Moscow at US not Index Futures
Speaker 1: on the rise this morning amid optimism that China's reopening
Speaker 1: will boost global growth next year, providing support for Marcus.
Speaker 1: And we check the markets all day long here on
Speaker 1: Bloomberg S and P Future is up about twenty eight
Speaker 1: points or seven tenths of a percent, and down features
Speaker 1: up about seven tenths of upper cent or two hundred
Speaker 1: twenty four points, and now as day futures up six
Speaker 1: tenths of upper cent or sixty eight points. The decks
Speaker 1: in Germany's up seven tenths of upper cent. Ten year
Speaker 1: treasury up one thirty second, held three point seven four percent.
Speaker 1: They yield on the two year four point three three percent.
Speaker 1: Nimex screwed oils up one point one percent of eighty
Speaker 1: six cents at eighty dollars, forty two cents of barrel
Speaker 1: Comics gold up seven tenths of upper cent or twelve
Speaker 1: dollars at eighteen sixteen announced the euro one point oh
Speaker 1: six x three against the dollar. British found one point
Speaker 1: two zero six two The gains at one thirty three
Speaker 1: point three too. And bitcoin this morning is a tenth
Speaker 1: of a percent. It's at sixteen thousand, eight hundred fifty
Speaker 1: six dollars. And that's a Bloomberg Business flash. Now here's
Speaker 1: Michael Barr with Moore on what's going on around the world.
Speaker 1: Call Karen, thank you very much. The death soul from
Speaker 1: a pre Christmas blizzard that paralyzed the Buffalo area and
Speaker 1: much of the country has risen to twenty eight in
Speaker 1: Western New York. The dead have been found in their cars, homes,
Speaker 1: and in snowbanks. Meanwhile, President Biden approved an emergency doctloration
Speaker 1: for Western New York. The Biden administration criticized Beijing's military
Speaker 1: drills near Taiwan this week as provocative. It insists it
Speaker 1: will continue, hoping the government in tai Paid defend itself.
Speaker 1: Monday Night football, the Chargers beat the Colts three in
Speaker 1: the NBA. The NETS one Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven journalists and analysts more than a
Speaker 1: hundred twenty countries. Michael bar this is Bloomberg, John, Michael,
Speaker 1: thank you. Or the smp F I've had. It is
Speaker 1: on track for its worst annual performance since two thousand
Speaker 1: and eight. It's the last trading week of the year.
Speaker 1: Futures right now are climbing, and let's get you set
Speaker 1: up for the trading day head now with Sam Stowball,
Speaker 1: the chief of investment Strategist at c f R. A
Speaker 1: honor to have you Sam. Good morning, Um, Good morning John.
Speaker 1: With history as our guide, is uh Santa Rally still
Speaker 1: in the currents? Sure, the Santa Rally has come into
Speaker 1: existing of all years since World War Two, causing the
Speaker 1: SMP to go up by about one point three percent.
Speaker 1: So I would tend to say that, based on Friday's action,
Speaker 1: based on today's futures, that we have a very good
Speaker 1: chance of if Santa Claus Rally. Where do you suppose
Speaker 1: we're going to end the year in terms of percentage
Speaker 1: gains or I should say percentage losses for the broader index? Well,
Speaker 1: it's still gonna be UH one of the ten negative
Speaker 1: years going back to I looked to because that's when
Speaker 1: SMP started computing its sector level indices. So it will
Speaker 1: end up being most likely the third worst year behind
Speaker 1: two thousand and two and two thousand and eight. Uh.
Speaker 1: And interesting, this is the only year since two thousand
Speaker 1: and two in which we had one sector that was
Speaker 1: positive and everybody else negative. What sector was that? That
Speaker 1: was real estate back in O two of four point one,
Speaker 1: very different from energy of more than fifty percent so
Speaker 1: far this year with every other sector in the red.
Speaker 1: And if there's a positive that can be taken from
Speaker 1: this is that the S and P was up nearly
Speaker 1: twent in two thousand and three. Um. Does negative sentiment
Speaker 1: change simply because we turned the calendar to a new year? Well,
Speaker 1: I think you you do get some return to a
Speaker 1: more positive sentiment because in a negative year, you're going
Speaker 1: to have a lot of tax loss selling, and so
Speaker 1: if you continue to see a lot of red, then
Speaker 1: I think that adds to the dampening effect of market performances,
Speaker 1: which then adversary effects his confidence. So I would tend
Speaker 1: to say that, you know, if we start two thousand
Speaker 1: and twenty three on an up note, then I would
Speaker 1: tend to think that that could help to buoy the sentiment.
Speaker 1: Will earnings be better than feared? Well, good question. I
Speaker 1: think the number is Uh. The SMP has in the
Speaker 1: last fifty two out of fifty three quarters has posted
Speaker 1: actual returns that exceeded end of quarter estimates. The only
Speaker 1: difference this time is that we are looking for an
Speaker 1: earnings recession, because the fourth quarter of two thousand and
Speaker 1: twenty two, as well as the first two quarters of three,
Speaker 1: are expected to post year on year declines, and historic
Speaker 1: looking at operating earnings, they have been coincident with the
Speaker 1: start of recessions, whereas with gap earnings they've been a
Speaker 1: bit of a lag. So an earnings recession, can you
Speaker 1: still have a positive year? Yes? Actually, a lot of
Speaker 1: studies have shown that when earnings zag, the market tends
Speaker 1: to zig. The recent being that investors are forward looking
Speaker 1: uh and they are looking across the valley. Expectations are
Speaker 1: we could see earnings up by ten point three percent
Speaker 1: in the fourth quarter of two thousand and twenty three,
Speaker 1: and then up by more than ten percent for all
Speaker 1: of two thousand and twenty four. So I think there
Speaker 1: is a good possibility that once we get past the
Speaker 1: undulations of the first half, that we do end up
Speaker 1: with a positive two thousand and twenty three. Can you
Speaker 1: further break down some of the sectors and the expected
Speaker 1: performance that you're looking for, Well, looking for pretty good
Speaker 1: earnings growth for the consumer discretionary category, one of the
Speaker 1: areas in which we're expecting to see double digit games,
Speaker 1: whereas energy, not surprisingly is expected to post double digit losses.
Speaker 1: UM or I should say, really year on your declines,
Speaker 1: they're still going to post earnings, but the percentage change
Speaker 1: year on year is expected to be down, primarily because
Speaker 1: they're up by about a hundred and six in two
Speaker 1: thousand and twenty two. So really sort of a hodgepodge
Speaker 1: of of where the earnings growth is likely to be seen.
Speaker 1: And we all know the mess that we saw with
Speaker 1: tech this year. Have the moats around some of those
Speaker 1: stronger tech names have they been removed? Well, maybe not removed,
Speaker 1: but certainly drained a little bit. UM. I think it's
Speaker 1: more a question of the enthusiasm, not necessarily the moat
Speaker 1: that has been drained. A lot of these companies still,
Speaker 1: um are very strong in what they do. Uh. The
Speaker 1: question is how much are investors willing to pay for them?
Speaker 1: I mean, this wasn't like two thousand in which investors
Speaker 1: thought that trading at sixty times forward earnings was still attractive. UM.
Speaker 1: I mean we're looking at technology, which is trading in
Speaker 1: the mid to low twenty multiple area. Now, UM, so
Speaker 1: in two thousand and twenty three, tech is expected to
Speaker 1: post only about a three percent earnings increase versus a
Speaker 1: similar number for the SMP five hundred. It says, I
Speaker 1: mentioned before discretionary financials and industrials that are expected to
Speaker 1: post double digit advances. Hey, Sanford, your perspective was sort
Speaker 1: of the poster child for active management. Well, poster child
Speaker 1: maybe in a negative way. UM. If you go to
Speaker 1: uh sp d j I dot com that's the SMP
Speaker 1: Dow Jones indices, you'll see their SPIVA report SMP index
Speaker 1: versus active UH and find that the indexes consistently outperform
Speaker 1: UH the active managers UH, certainly on a large cap basis,
Speaker 1: but also mid and small cap as well. So it's
Speaker 1: it's certainly been a very challenging period for the active managers.
Speaker 1: And just about the minute left, UH, I want you
Speaker 1: to put your account of his head on among the
Speaker 1: data this week, initial jobless claims Thursday, Waiting for the Fed, Um,
Speaker 1: are they going to have to torpedo the jobs market
Speaker 1: until we can signal all clear for for risk assets? Well,
Speaker 1: I think we're gonna see the SMP K Schiller Index
Speaker 1: come in UM lower than last time. I think that
Speaker 1: we're we are going to be UM looking at jobless
Speaker 1: claims UM come up a bit more. I think the
Speaker 1: Fed is going to be looking at two pronged primarily
Speaker 1: looking at the PCE core, the personal consumption expenditure ex.
Speaker 1: Food and energy, because that's their primary read on inflation,
Speaker 1: and at the same time hoping that they don't do
Speaker 1: too much damage to the employment picture at the same time,
Speaker 1: so their focus is inflation, but they hope there's not
Speaker 1: a lot of collateral damage. Where does SMP five hundred
Speaker 1: and the spot here? Yeah, is our estimate UM based
Speaker 1: on c fr A analysts, target price differentials and some
Speaker 1: technical considerations. UM. Tough first half and a better second half. Sam,
Speaker 1: always a pleasure. Thanks very much for joining us this
Speaker 1: Tuesday morning. Sam stove All the chief investment strategist at
Speaker 1: c f r A, And right now I had a
Speaker 1: market open down futures of two SMP five hundred futures
Speaker 1: right now. Up, you're listening to Bloomberg Day break, Markets,
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com and Bloomberg Business Outland at Bloomberg Quick tap.
Speaker 1: This is a Bloomburn business lass and I'm Karen Moscow
Speaker 1: along with John Tucker, and futures are higher this morning.
Speaker 1: We checked the markets all day long here on Bloomberg
Speaker 1: with SMP futures up about twenty seven points or seven
Speaker 1: tenths of upper cent. Futures up about seven tents of
Speaker 1: upper cent or two hundred twenty four points, and NASDAG
Speaker 1: future is up six tents of upper cent or sixty
Speaker 1: two points ten. Your treasury up one thirty second. You
Speaker 1: have three point seven four percent and they yield on
Speaker 1: the two year four point three three percent. Nine X
Speaker 1: screwed oil is up nine ten percent or seventy cents,
Speaker 1: and eighty dollars twenty five cents of barrel comex gold
Speaker 1: up seven ten percent or two dollars thirty cents. At
Speaker 1: eighteen sixteen fifty announced the euro one point six six
Speaker 1: four against the dollar, the en one thirty three point
Speaker 1: three zero, and that's a Bloomberg bus this flash John
Speaker 1: all right, Karen, thanks a lot five fifties six on
Speaker 1: Well and Street time for our daily Bloomberg Lawbrief, exploring
Speaker 1: legal issues in the news today we're looking at the
Speaker 1: Supreme Court when justice has returned to the bench in January,
Speaker 1: if they're going to hear a case involving a Turkish
Speaker 1: bank owned and controlled by the Turkish government, that maybe
Speaker 1: President Setting Turkey's hoalk Bank is asking the justices to
Speaker 1: dismiss criminal charges against it stemming from an Alige scheme
Speaker 1: to help Iran evade economic sanctions by diverting billions of
Speaker 1: dollars in oil and gas revenue. Ever More, in the
Speaker 1: case Bloomberge June Grasso speaks to Harold Crante, professor at
Speaker 1: the Chicago Kent College of Law. I'll explain why this
Speaker 1: case could be precedent setting. So the turkys Pake evidently
Speaker 1: helped launder somewhere close to twenty billion dollars of Iranian
Speaker 1: oil assets in contravention of our laws against doing business
Speaker 1: with Iran, and so criminal charging robotic. It's the bank
Speaker 1: here in the United States because some of the laundring
Speaker 1: took place within the US financial system. There has never
Speaker 1: been a criminal action brought against a foreign state owned
Speaker 1: enterprise in our history, and this was really the first one,
Speaker 1: and the second Circuit held that there's no law immunizing
Speaker 1: a state owned bank for its commercial activities. The way
Speaker 1: there would be to protect the state diplomat, and so
Speaker 1: the criminal charges could go forward. So this is really
Speaker 1: unprecedented and it's a major change which we have ripple
Speaker 1: effect around the world because usually we treats foreign governments,
Speaker 1: whether they're doing commercial activities or not, in a very
Speaker 1: special way. We have a whole statute of the Federal
Speaker 1: Sovereign Immunities Act which limits when you can even sue
Speaker 1: state owned enterprises. But this would be saying that, well,
Speaker 1: Congress didn't say you can't have a criminal action against
Speaker 1: a state owned enterprise, and so now we have the
Speaker 1: first one and we'll see if the Supreme Court, let's
Speaker 1: just stand. My guess is that it will. But who
Speaker 1: knows what's turkeys argument for why the bank shouldn't be prosecuted.
Speaker 1: First of all, it's unprecedented that there has never been
Speaker 1: this kind of action, and they're extrapolating from the diplomatic
Speaker 1: precedents would suggest that there is diplomatic immunity for its officers,
Speaker 1: and Congress has seen to fit that we cannot prosecute
Speaker 1: diplomats for ordinary crimes, and so they're suggesting that the
Speaker 1: danger would be that the state owned enterprise. You basically
Speaker 1: end up limiting the kind of functional immunity that's given
Speaker 1: to the members of different countries who may be directors
Speaker 1: on the bank or maybe their relatives are working in
Speaker 1: the bank, and so this would chip away at that
Speaker 1: kind of immunity. Why do you think the Supreme Court
Speaker 1: is going to allow the prosecution to go forward? Congress
Speaker 1: didn't precruited, and in the absence of Congressional statute from
Speaker 1: the court, we have to rely upon some other kind
Speaker 1: of analogy, such as diplomatic community to stop the prosecution
Speaker 1: and and to stop the prosecution of a bank for
Speaker 1: its commercial activities seems pretty far stretch from stopping a
Speaker 1: prosecution from a dimple match who has been accused of
Speaker 1: a hidden run or some other criminal offense. And that's
Speaker 1: Harold Crant, a professor at the Chicago Kent College of Law,
Speaker 1: speaking with Bloomberg's June Grasso. He can catch more of
Speaker 1: that interview, plus analysis of the latest legal news by
Speaker 1: subscribing to the Bloomberg Law podcast or downloading the show
Speaker 1: at Bloomberg dot com. Slash Podcasts and attorneys can find
Speaker 1: exceptional legal research and business development tools at Bloomberg law
Speaker 1: dot com and on the Bloomberg terminal at b law
Speaker 1: go SMP futures twenty six points higher, and that our
Speaker 1: futures up two hundred twenty. You're listening to Bloomberg day Break.