WEBVTT - Bloomberg Daybreak: December 27, 2022 - Hour 1 (Radio) 0:00:03.279 --> 0:00:06.680 Live from the Bloomberg Interactive Berger Studios. This is Bloomberg 0:00:06.760 --> 0:00:10.520 day Break for Tuesday, December seven two. Coming up, the 0:00:10.600 --> 0:00:13.880 shower stocks and China gain as the country continues to 0:00:14.000 --> 0:00:17.200 roll back COVID measures. That's something to lift us futures 0:00:17.239 --> 0:00:19.360 as we close out the last trading week of the year, 0:00:19.720 --> 0:00:22.720 and President Biden declares an emergency in the state of 0:00:22.760 --> 0:00:25.800 New York because of the winter storm. New York GOP 0:00:26.000 --> 0:00:29.520 representative Alex Santos admits he lied about its job experience. 0:00:29.600 --> 0:00:32.800 Plus Democrats called Texas Governor Rabbits actions on migrants of 0:00:32.880 --> 0:00:36.280 dangerous stunt. I'm Michael Barr more ahead, I'm John stash 0:00:36.320 --> 0:00:38.040 Our in sports Red Hot, and that's been at nine 0:00:38.040 --> 0:00:39.879 wins in a row with a win in Cleveland. Mike 0:00:39.920 --> 0:00:44.960 White is back as the Jets starting quarterback. That's all's 0:00:45.000 --> 0:00:49.240 trendyhead on Bloomberg Daybreak on Bloomberg Eliving Free on New York, 0:00:49.440 --> 0:00:54.120 Bloomberg one, Washington, d C, Bloomberg one oh six one, Boston, 0:00:54.400 --> 0:00:58.560 Bloomberg nine sixties and Francisco Sirius x M one nine 0:00:58.600 --> 0:01:01.840 team and around the world. Then Bloomberg Radio dot Com 0:01:01.920 --> 0:01:08.760 and via the Bloomberg Business app. Good morning. I'm John 0:01:08.760 --> 0:01:12.160 Tucker and I'm Karen Moscow and US stock index futures 0:01:12.160 --> 0:01:14.200 are on the rise this morning, and we checked the 0:01:14.200 --> 0:01:17.560 markets all day long here on bloomberg SMP futures up 0:01:17.600 --> 0:01:20.360 twenty seven points or seven tenths of upper cent, DEAF 0:01:20.360 --> 0:01:22.640 futures up six tens of upper cent or two hundred 0:01:22.680 --> 0:01:25.800 eleven points. And as the futures up six tensive upper 0:01:25.800 --> 0:01:29.200 cent er seventy points ten, your treasury up one thirty second. 0:01:29.240 --> 0:01:31.679 You have three point seven four percent. They yield on 0:01:31.720 --> 0:01:34.720 the two year at four point three three percent. NIMEX 0:01:34.760 --> 0:01:37.080 screwed oil is up six ten percent or forty nine 0:01:37.080 --> 0:01:39.680 cents at eighty dollars five cents of barrel comex s 0:01:39.720 --> 0:01:42.080 called up seven tens per cent or eleven dollars seventy 0:01:42.120 --> 0:01:45.600 cents at eighteen fifteen eighty announced. The euro one point 0:01:45.600 --> 0:01:48.400 oh six five two against the dollar, the yen one 0:01:48.440 --> 0:01:51.880 thirty three point one nine, John and Karen, As we 0:01:51.920 --> 0:01:54.000 wait for stocks to begin trading here in the US 0:01:54.080 --> 0:01:57.960 on this short and trading week, Equities in Asia are higher. 0:01:58.320 --> 0:02:01.360 China continues to roll back COVID measures and that is 0:02:01.360 --> 0:02:04.200 boosting sentiment in the region. Let's get the recap from 0:02:04.280 --> 0:02:07.960 Bloomberg Daybreak Asia anchor Brian Curtis. In Hong Kong, Asian 0:02:07.960 --> 0:02:11.840 stocks powered higher on the China news of ditching quarantine rules. 0:02:12.080 --> 0:02:15.720 Traveling consumer good stocks jumped. It was a risk on day, 0:02:15.760 --> 0:02:19.080 with US and European equity futures also higher and the 0:02:19.160 --> 0:02:22.560 dollar lower. Investors also embraced the cooling of a key 0:02:22.600 --> 0:02:26.960 inflation measure in the United States. Oil and gold also bounced. 0:02:27.200 --> 0:02:30.160 Indexes of US, Asian and global stocks still remained down 0:02:30.200 --> 0:02:34.119 about this year. It's the worst annual performance since two 0:02:34.120 --> 0:02:37.600 thousand and eight. In Hong Kong, Brian Turtis Bloomberg day Break, 0:02:37.840 --> 0:02:41.120 Ry Brian, thank you all. And geopolitical news. US China 0:02:41.280 --> 0:02:44.760 tensions are in focus again. The US is criticizing Beijing's 0:02:44.840 --> 0:02:49.040 military drills near Taiwan this week. The National Security Council 0:02:49.120 --> 0:02:52.560 called the exercises provocative and said it will continue to 0:02:52.639 --> 0:02:56.480 help Taiwan defend itself. Last week, US lawmakers agree to 0:02:56.520 --> 0:02:59.480 a spending bill that included two billion dollars and weapons 0:02:59.520 --> 0:03:02.360 funding for Taiwan. And back here in New York, Karen 0:03:02.639 --> 0:03:06.119 nasty bout of winter weather has resulted in twenty eight 0:03:06.160 --> 0:03:09.160 deaths and crippled parts of the state, and now President 0:03:09.240 --> 0:03:12.720 Biden has approved a disaster declaration in New York. Let's 0:03:12.760 --> 0:03:15.760 get the story this morning from Bloomberg's Michael Barr. The 0:03:15.760 --> 0:03:18.760 Buffalo area got at least four ft of snow, and 0:03:18.919 --> 0:03:22.360 moore is expected today. New York Governor Kathy Hukel, we 0:03:22.480 --> 0:03:25.280 have been to a lot of wars together, and this 0:03:25.440 --> 0:03:27.760 blizzard is the one for the ages. Certainly, it is 0:03:27.800 --> 0:03:31.000 the blizzard of the century. Those who died around Buffalo 0:03:31.080 --> 0:03:34.480 were found in cars, homes, and snow banks. Some died 0:03:34.520 --> 0:03:38.400 while shoveling snow. Buffalo Mayor Byron Brown says they are 0:03:38.440 --> 0:03:41.960 also dealing with power outages and lack of heat. I'm 0:03:42.040 --> 0:03:47.320 myself and my family were without power. I can tell 0:03:47.360 --> 0:03:50.880 you at one point the temperature in our home got 0:03:50.920 --> 0:03:55.160 down to about forty degrees. It was very uncomfortable. We 0:03:55.240 --> 0:03:58.320 had to layer up. Mayor Brown says some people have 0:03:58.480 --> 0:04:01.720 been without power since Friday in New York. Michael Barr, 0:04:01.760 --> 0:04:04.360 Bloomberg Daybreak. All right, Michael, thank you are The bad 0:04:04.400 --> 0:04:07.320 weather across the country is also hitting air travel hard, 0:04:07.360 --> 0:04:09.160 and we get that part of the story. Live with 0:04:09.200 --> 0:04:12.320 the Bloomberry. Steve Rappaport, it's Steve, good morning, Good morning, 0:04:12.480 --> 0:04:15.480 Karen and John. Airlines are scrambling to catch up after 0:04:15.520 --> 0:04:18.359 a winter storm canceled thousands of flights during the Christmas 0:04:18.400 --> 0:04:21.200 travel rush. The flight tracking website flight of Where shows 0:04:21.200 --> 0:04:24.760 more than twenty hundred flights grounded today. Southwest was the 0:04:24.800 --> 0:04:29.440 worst hit yesterday, accounting for nearly seventy of the cancelations nationwide. 0:04:29.600 --> 0:04:32.920 Southwest Senior director Jim McVeigh, as the storm continued to 0:04:32.960 --> 0:04:37.240 sweep across the country, the cancelations just compiled one after another, 0:04:37.400 --> 0:04:39.359 and as a results, we end up with flight cruise 0:04:39.360 --> 0:04:41.240 and airplanes that are out of place and not in 0:04:41.240 --> 0:04:43.560 the cities that they need to be in to continue 0:04:43.560 --> 0:04:46.200 to run our operations. McVeigh says the airline is doing 0:04:46.240 --> 0:04:49.359 everything it can to write the current challenges. Southwest stock 0:04:49.400 --> 0:04:51.640 is down about three percent in pre market trading Live 0:04:51.680 --> 0:04:54.599 in New York. I'm Steve Rappaport, Bloomberg Daybreak, Steve, Thanks 0:04:54.680 --> 0:04:56.880 and turning back to the markets were closing out the 0:04:56.960 --> 0:05:00.400 last trading week of a dismal year for equities. SMP 0:05:01.200 --> 0:05:05.400 is down more than harder hit. His been the tech 0:05:05.440 --> 0:05:08.279 heavy NASDAG, which has lost a third of its value. 0:05:08.720 --> 0:05:12.720 Jonathan Gallab is the chief US equity strategist at Credit Sweeze. 0:05:13.040 --> 0:05:15.200 I think that this problem that we've had in tech 0:05:15.600 --> 0:05:18.760 is not a sentiment problem. It's an earnings problem, and 0:05:18.800 --> 0:05:21.200 it doesn't last for three or four quarters. It last 0:05:21.279 --> 0:05:23.680 for six or eight quarters. And a lot of these 0:05:23.680 --> 0:05:26.039 big tech companies that two or three years ago we 0:05:26.120 --> 0:05:28.919 said they have modes, they're impenetrable, and we talked in 0:05:28.960 --> 0:05:31.960 those terms. Um, a lot of those companies are are 0:05:31.960 --> 0:05:36.800 getting closer to total addressable market, whether that's in handsets 0:05:36.920 --> 0:05:40.479 or advertising or other things like that. Jonathan gallabat Credit 0:05:40.480 --> 0:05:43.280 Swiss thinks the resilient consumer will keep the U s 0:05:43.360 --> 0:05:47.560 out of recession. Well, John once a pandemic Darling. Peloton 0:05:47.720 --> 0:05:52.240 disappointed investors last month with the holiday forecast that missed estimates. 0:05:52.279 --> 0:05:54.479 Now it has a plan to help recoup some of 0:05:54.480 --> 0:05:58.000 those losses. We get the details TROUM Bloomberg's Erika Herschowitz 0:05:58.279 --> 0:06:00.720 Peloton at least the statement Monday's saying it will begin 0:06:00.839 --> 0:06:04.200 offering refurbished bikes at discounts of up to five hundred 0:06:04.200 --> 0:06:07.120 dollars below new model prices. The price tag on a 0:06:07.160 --> 0:06:10.800 certified refurbished model will range from eleven forty five dollars. 0:06:12.320 --> 0:06:15.360 That's three hundred to five hundred dollars below current prices. 0:06:15.640 --> 0:06:18.160 The refurbished bikes come with the same twelve month limited 0:06:18.160 --> 0:06:20.880 warranty as the new ones and include delivery and set up. 0:06:21.160 --> 0:06:24.520 The company's All Access membership is sold separately. Shares a 0:06:24.600 --> 0:06:29.479 peloton or down this year, Erica Hurwitz, Bloomberg Radio thanks 0:06:29.600 --> 0:06:33.040 Erica Shares of AMC Entertainment. They're continuing their slide. This 0:06:33.080 --> 0:06:36.640 morning they were down another seven percent, enter falling sevent 0:06:36.960 --> 0:06:40.200 percent on Thursday and Friday. The company is proposing to 0:06:40.240 --> 0:06:43.640 convert preferred equity units into common shares, along with a 0:06:43.760 --> 0:06:46.719 ten to one reverse stock split. Well, the price of 0:06:46.720 --> 0:06:49.120 oil also on the rise this morning. John China has 0:06:49.160 --> 0:06:52.280 taken more steps to unwind it's COVID zero policy, which 0:06:52.279 --> 0:06:55.960 could increase demand. Straight ahead, we have your latest local headlines, 0:06:56.080 --> 0:07:06.680 plus a check of sports, and this is Bloomberg the 0:07:06.680 --> 0:07:09.120 Boomberg Weather for it today becoming partly study the high 0:07:09.160 --> 0:07:12.560 temperature topic out at about thirty five degrees time. Down 0:07:12.560 --> 0:07:14.240 for a look at some of the other stories making 0:07:14.240 --> 0:07:16.880 news in New York adds around the world, and for 0:07:16.960 --> 0:07:20.040 that we're joined by Bloomberg's Michael Barr Michael, good Morning, 0:07:20.120 --> 0:07:23.440 Good Morning John. Representative Elec George Santos of New York 0:07:23.480 --> 0:07:26.720 admitted that he lied about his job experience and college 0:07:26.800 --> 0:07:30.440 education during his successful campaign for a seat in the 0:07:30.560 --> 0:07:33.200 US House. In an interview with The New York Post 0:07:33.240 --> 0:07:36.320 in w ABC radio, the Long Island Republicans said, my 0:07:36.520 --> 0:07:40.760 sins here are embellishing my resume. I'm sorry. A lot 0:07:40.760 --> 0:07:44.680 of people overstayed in their resumes or um twist a 0:07:44.720 --> 0:07:48.160 little bit, or ingrandjate themselves. I'm not saying I'm not 0:07:48.360 --> 0:07:51.680 guilty of that. I'm just saying I've done so much 0:07:51.720 --> 0:07:55.120 good work in my career. The New York Times raised 0:07:55.200 --> 0:07:58.160 questions last week about the life story that Santos had 0:07:58.200 --> 0:08:01.560 presented during his campaign, including that he had worked for 0:08:01.640 --> 0:08:05.440 City Group and Goldman Sachs. Neither company could find any 0:08:05.480 --> 0:08:09.240 records verifying that. In Connecticut, the twenty two year veteran 0:08:09.520 --> 0:08:12.720 of the North Haven Fire Department has died from injuries 0:08:12.760 --> 0:08:15.520 he sustained while working ablaze at a four family home. 0:08:16.040 --> 0:08:19.080 The department identified the firefighter is forty six year old 0:08:19.360 --> 0:08:24.160 mattheist Wortz. The Connecticut State Police are investigating the cause 0:08:24.280 --> 0:08:27.680 of the blaze, which displaced thirteen residents on Christmas night. 0:08:28.200 --> 0:08:31.560 The Biden administration is accusing Texas Governor Gregg Abbot of 0:08:31.680 --> 0:08:35.960 endangering lives all in the name of politics. Three buses 0:08:35.960 --> 0:08:38.680 of migrants traveled from Texas and were left in the 0:08:38.679 --> 0:08:44.559 bitter cold outside Vice Presidents Kamala Harris's official residence. Ukraine's 0:08:44.600 --> 0:08:47.800 foreign minister has said that his nation wants a summit 0:08:47.840 --> 0:08:51.320 to end the war, but he doesn't anticipate Russia taking part. 0:08:51.760 --> 0:08:54.720 The Metro Kuleba says that his government wants a peace 0:08:54.760 --> 0:08:57.839 summit within two months at the United Nations with the 0:08:57.880 --> 0:09:03.280 Secretary General Antonio Gutera as mediator. Every war ends as 0:09:03.280 --> 0:09:10.199 a result of uh the actions taking at the battlefield 0:09:10.480 --> 0:09:14.200 and at the negotiating table. But the balance of what 0:09:14.360 --> 0:09:17.320 will be one on the battlefield and what will be 0:09:17.360 --> 0:09:21.040 one at the table it remains to be seen. Foreign 0:09:21.040 --> 0:09:24.160 Minister Calai But also told the Associated Press that Russia 0:09:24.320 --> 0:09:28.160 must face a war crimes tribunal. Global News twenty four 0:09:28.200 --> 0:09:31.600 hours a day on air and on Bloomberg Quicktake, powered 0:09:31.600 --> 0:09:34.520 by more than hundred journalists, analysts more than a D 0:09:34.679 --> 0:09:37.800 twenty countries. Michael Barr and this is Bloomberg, John, Michael, 0:09:37.800 --> 0:09:43.559 thank you, And it's a five a way to Wall 0:09:43.640 --> 0:09:45.520 Street time. But the sports were court being brought to 0:09:45.520 --> 0:09:47.360 you by your trime state. How do you dealer a 0:09:47.440 --> 0:09:49.880 good morning? John Stashour, Good morning, John. The Jets have 0:09:50.040 --> 0:09:53.080 four quarterbacks. They've used all four. They started three. Zack 0:09:53.160 --> 0:09:56.000 Wilson's gone from first string, down to third and up 0:09:56.040 --> 0:09:58.880 to second, back to first. Now he's back to third 0:09:58.880 --> 0:10:01.160 string or maybe fourth, and he'll be inactive for the 0:10:01.240 --> 0:10:03.520 Jets Sunday in Seattle. Mike White has recovered from his 0:10:03.600 --> 0:10:07.040 injured ribs. He'll start with Joe Flacco, the backup Jets got. 0:10:07.160 --> 0:10:10.000 Robert Sala asked where things stand with Wilson. I still 0:10:10.000 --> 0:10:11.640 think he's got a future here. I still think he's 0:10:11.679 --> 0:10:14.240 gonna be a really good quarterback. Uh. He just he 0:10:14.520 --> 0:10:16.439 needs time to just kind of sit back and continue 0:10:16.440 --> 0:10:19.200 the development that we're trying to rekick start, if you will, 0:10:19.679 --> 0:10:23.079 after the New England game. But I still have him 0:10:23.080 --> 0:10:25.000 in our future, in our in our plans. This runs 0:10:25.040 --> 0:10:27.680 contrary to report on Fox that the Jets have decided 0:10:27.720 --> 0:10:30.040 to move on from Wilson after this season. The Colts 0:10:30.040 --> 0:10:33.040 with their third different starting QB and one time Super 0:10:33.040 --> 0:10:35.679 Bowl hero Nick Bole through three interceptions, the Chargers won 0:10:35.760 --> 0:10:38.680 twenty to three. That clinches a NSC wild card for 0:10:38.679 --> 0:10:41.520 the Chargers. So there's one a FC spot remaining with 0:10:41.600 --> 0:10:45.240 Miami leading the Jets, Patriots, and Steelers by one game. 0:10:45.280 --> 0:10:48.080 Dolphins QB two A ton of alowas and concussion protocol 0:10:48.120 --> 0:10:51.000 as he was earlier this season, the Giants were walking 0:10:51.080 --> 0:10:54.000 last night. They host Indianapolis on Sunday. A Giants win 0:10:54.520 --> 0:10:56.960 and they're in the playoffs. Denver four and eleven just 0:10:57.040 --> 0:11:00.480 lost by thirty seven. The Broncos fired coach na Fandel Hacket. 0:11:00.840 --> 0:11:03.080 Ninth straight win for the Red Hot Nets. Both Kevin 0:11:03.160 --> 0:11:07.199 Durant and Kyrie Irving scored thirty two and seventeen win 0:11:07.280 --> 0:11:09.520 at Cleveland that has the Nets only two games out 0:11:09.520 --> 0:11:11.760 of first place in the East. Nick looked in the 0:11:11.800 --> 0:11:14.240 three games lusing streak. Tonight there in Dallas, the Rangers 0:11:14.240 --> 0:11:17.199 home for Washington. The Islanders host Pittsburgh and Seaton Hall 0:11:17.280 --> 0:11:19.960 is a big East game at Marquette. John stashually were 0:11:20.000 --> 0:11:22.720 Bloomberg Sports, John, all right, thanks so lun John and 0:11:22.760 --> 0:11:25.600 the Bloomberg Sports Report, brought to you by Audie. Don't 0:11:25.679 --> 0:11:27.760 let someone else drive off of the Audi model you've 0:11:27.760 --> 0:11:30.360 always wanted to visit your local try state Audi dealer 0:11:30.400 --> 0:11:32.960 to get behind the wheel of yours today, or visit 0:11:33.000 --> 0:11:37.520 Autie Offers dot com for more information. Ahead of the 0:11:37.600 --> 0:11:41.240 market opened on Wall Street Dow futures right now there 0:11:41.240 --> 0:11:43.760 are up two D fourteen points, the ruse of about 0:11:43.800 --> 0:11:47.520 seven tenths of a percent, smp emanate futures twenty seven 0:11:47.559 --> 0:11:50.319 points higher, and that as that e many futures are 0:11:50.480 --> 0:11:56.680 seventy points higher. Volatility index the VIX slightly elevated at six. 0:11:57.000 --> 0:12:04.320 You're listening to Bloomberg Game Break live from coast to coast, 0:12:04.480 --> 0:12:07.800 from New York to San Francisco, Boston to Washington, d C. 0:12:08.240 --> 0:12:12.119 Nationwide on Sirius examp of Bloomberg Business app and Bloomberg 0:12:12.160 --> 0:12:17.199 dot Com. This is Bloomberg Daybreak and good morning. I'm 0:12:17.280 --> 0:12:19.560 John Tucker. Let's take a moment now to look at 0:12:19.559 --> 0:12:24.120 the outlook for European banks in the New Year. Two 0:12:24.160 --> 0:12:27.880 was a year dominated by central bank policy impacting financial 0:12:27.880 --> 0:12:31.200 services companies all across Europe and the world, and it 0:12:31.200 --> 0:12:33.480 looks like we could see more of the same in 0:12:33.600 --> 0:12:38.520 the new year. Inflation and energy dominate the debate in Europe, 0:12:38.800 --> 0:12:41.520 and both our top mine for the CEO of a 0:12:41.679 --> 0:12:45.040 sock Jen Bloomberg, Dandy Burger, sat down with a conversation 0:12:45.160 --> 0:12:48.280 with fred De Kudea to discuss the outlook for sock 0:12:48.360 --> 0:12:51.520 Jen and the banking industry as a whole. So let's 0:12:51.600 --> 0:12:54.959 listen in now to that conversation. Are you concerns that 0:12:55.120 --> 0:12:58.520 as we look at the likelihood of a European recession, 0:12:59.040 --> 0:13:01.480 that this is a reap eat of two thousand, repeat 0:13:01.480 --> 0:13:03.880 of Fuche where they're going to have to hike into 0:13:03.920 --> 0:13:07.439 a recession and then quickly turn around. And I'm more positive, 0:13:08.040 --> 0:13:11.640 and our central scenario is a kind of yes, slow 0:13:12.120 --> 0:13:16.520 economy because of the increase of interest rate, but not 0:13:16.600 --> 0:13:20.839 a recession like the one we experienced into thousand and nine. 0:13:21.840 --> 0:13:24.600 First of all, for the starting point is pretty good. 0:13:24.679 --> 0:13:27.960 The we just see no deterioration of the cost of risk. 0:13:28.480 --> 0:13:32.040 The financial sector is in good shape able to finance 0:13:32.080 --> 0:13:36.680 the economy. So yes, the central banks want to fight 0:13:36.760 --> 0:13:40.640 against inflation, it makes sense, But I think we are 0:13:40.679 --> 0:13:44.000 seeing at this stage some signs of slow down of 0:13:44.040 --> 0:13:47.400 the pace of inflation. I'm sure that the central banks 0:13:47.400 --> 0:13:50.319 will carry on monitoring all the parameters and the economies 0:13:50.360 --> 0:13:55.280 to to caliber rightly their monetary policy. What is being 0:13:55.320 --> 0:13:58.480 done is needed. But again I don't think that we 0:13:58.520 --> 0:14:00.719 are facing the same kind of singer. There's a lot 0:14:00.720 --> 0:14:06.040 of uncertainty. External shocks can create the problem, let's face it. 0:14:06.800 --> 0:14:09.839 But in the absence of an external shock we are having, 0:14:09.960 --> 0:14:13.720 mind a slowdown. But which is that we can absorb? 0:14:14.000 --> 0:14:15.960 So what sort of shock are you concerned about? What 0:14:15.960 --> 0:14:18.600 we hit the level of changing things for you to 0:14:18.640 --> 0:14:23.600 erase that optimism, you know, geopolitical crisis, an evolution of 0:14:23.680 --> 0:14:26.800 the conflict in Ukraine. Just if you wish the way 0:14:26.800 --> 0:14:31.800 we will fare the winter and effectively with perhaps hope 0:14:31.800 --> 0:14:36.960 free temperatures which are okay, which we mean reserves, gas 0:14:37.000 --> 0:14:40.560 reserves being preserved as much as possible will help for 0:14:40.640 --> 0:14:42.800 the next twelve months in terms of gas prices. So 0:14:43.000 --> 0:14:45.520 there are many parameters which can play a role in 0:14:45.560 --> 0:14:50.520 the in the invlation. Wage evolution. Also at this stage 0:14:50.560 --> 0:14:55.040 I see also companies which are trying to avoid entering 0:14:55.120 --> 0:15:00.160 into a cycle where wages are increasing too much, so 0:15:00.240 --> 0:15:04.320 they want to preserve the future. So again every every 0:15:04.480 --> 0:15:07.920 month where we'll see how it goes. What about corporate Europe, 0:15:08.000 --> 0:15:11.800 do they have the strength to sustain again the wage pressure, 0:15:12.240 --> 0:15:14.560 these cost pressures. But at the same time, as we're 0:15:14.600 --> 0:15:17.720 discussing an e CV which continues to hike interest rates 0:15:17.720 --> 0:15:21.400 so higher the cost of capital becomes higher. In corporate Europe, 0:15:21.600 --> 0:15:24.360 we stand that overall, yes, I think so. Of course 0:15:24.360 --> 0:15:27.800 there will be differences. Some companies will not make it, 0:15:28.360 --> 0:15:32.120 depending on their leverage, their competitive position. But so farward 0:15:32.160 --> 0:15:35.000 I'm is seeing is actually companies on one end which 0:15:35.000 --> 0:15:37.480 have been able to adapt. Look at the evolution of 0:15:37.560 --> 0:15:41.480 the consumption of electricity or even gas. They are making 0:15:41.640 --> 0:15:47.520 progress under the pressure to reduce their they are the 0:15:47.720 --> 0:15:52.200 usage of facite energy, they improve their efficiency. Most of 0:15:52.240 --> 0:15:55.840 them also, I think, have been able to pass in 0:15:55.880 --> 0:16:00.640 their prices the increase of the cost of and j wages. 0:16:00.720 --> 0:16:04.000 So again, that's where it's very important in my mind 0:16:04.040 --> 0:16:07.200 to see whether we are entering and cycled and normally 0:16:07.240 --> 0:16:10.040 progressing normalization of inflation, and I think it should be 0:16:10.080 --> 0:16:14.320 fine or unfortunately, yes, inflation stays, and then it might 0:16:14.360 --> 0:16:17.200 be more difficult because at some point the consumer will 0:16:17.240 --> 0:16:20.560 not be able to absorb the price increase. So jury 0:16:20.640 --> 0:16:24.080 is out. The coming months will be critical, but there 0:16:24.160 --> 0:16:26.960 is a path for something which is manageable. I think 0:16:27.400 --> 0:16:29.160 these coming months are also going to be some of 0:16:29.360 --> 0:16:32.920 your last at sock Gen. I mean you've now seen 0:16:33.000 --> 0:16:37.000 the longest tenure of of any banking chief in Europe. 0:16:37.440 --> 0:16:40.920 As you prepare for this economic environment, You've had to 0:16:40.920 --> 0:16:43.960 prepare the bank for a lot. What does preparation look 0:16:44.040 --> 0:16:46.440 like this time around it? As you get ready to 0:16:46.520 --> 0:16:49.800 step down from the from the helm, well, I must say, 0:16:49.840 --> 0:16:52.440 my short term agenda is precisely to ensure that that 0:16:52.520 --> 0:16:56.120 we live a bank in good shape to my success, 0:16:56.240 --> 0:16:58.280 what does that mean? Complete the job in terms of 0:16:58.320 --> 0:17:01.200 strategic project. Because this product jacks the merger of our 0:17:01.200 --> 0:17:05.000 two French networks, The acquisition of this plan will bring 0:17:05.119 --> 0:17:09.600 benefits which are independent on the economy. On the economic 0:17:09.640 --> 0:17:13.800 cat look, we will bring the Scenergy's revenues in cost 0:17:13.960 --> 0:17:16.399 whatever the environment is. It's a way to of course 0:17:16.760 --> 0:17:20.520 reinforce the business model. The second element, of course, is 0:17:20.560 --> 0:17:24.680 to ensure that we are entering this and certain environment 0:17:24.800 --> 0:17:27.840 with the maximum of provision. We will end up to 0:17:28.119 --> 0:17:31.760 and twenty two with a level of excente provision within 0:17:31.880 --> 0:17:35.440 our jargon you know as one as two higher than 0:17:35.480 --> 0:17:38.439 the peak of the covet. It's a scient A general 0:17:38.520 --> 0:17:42.359 CEO Frederick o'deo speaking with Bloomberg Stanley Burger is not 0:17:42.440 --> 0:17:44.520 looked for the new year. You can cage the full 0:17:44.560 --> 0:17:49.119 conversation online at Bloomberg dot com. Five eighteen of law 0:17:49.160 --> 0:17:51.800 Street and still in a Bloomberg daybreak, we check on 0:17:51.960 --> 0:17:56.240 markets and bring you the latest the business, economics and finance. 0:17:56.560 --> 0:18:03.760 I'm John Tucker. This is Bloomberg Markets headlines and breaking 0:18:03.800 --> 0:18:06.680 news twenty four hours a day at Bloomberg dot com, 0:18:06.800 --> 0:18:10.359 the Bloomberg Business Outland at Bloomberg Quick Tape. This is 0:18:10.359 --> 0:18:19.199 a Bloomberg Business lash And I'm Karen Moscow along with 0:18:19.320 --> 0:18:22.120 John Tucker. And equities are arising with a dollar declines, 0:18:22.160 --> 0:18:25.600 a maid positive sentiment from China's rollback of COVID isolation 0:18:25.640 --> 0:18:28.000 measures and the cooling of a key inflation gauge in 0:18:28.040 --> 0:18:30.320 the US. And we checked the markets all day long 0:18:30.359 --> 0:18:33.080 here on Bloomberg with SMP futures up about twenty eight 0:18:33.080 --> 0:18:35.840 points or seven tenths of uppercent. Down future is up 0:18:35.840 --> 0:18:38.240 about seven tenths of upper cent or two hundred nineteen 0:18:38.240 --> 0:18:41.200 points and Nasdack futures up six tents of uppercent or 0:18:41.240 --> 0:18:43.920 seventy one points. The decks in Germany's up sixtents of 0:18:44.040 --> 0:18:46.760 uppercent ten. Your treasury up one thirty second. You have 0:18:46.800 --> 0:18:48.920 three point seven four percent. They yield on the two 0:18:49.000 --> 0:18:52.080 year four point three three percent. Nimex screwed oil is 0:18:52.119 --> 0:18:54.159 up about nine tenths of upper cent or sixty eight 0:18:54.280 --> 0:18:57.040 cents at eighty dollars twenty four cents of barrel comics 0:18:57.040 --> 0:18:59.320 gold up seven tents of upper cent or eleven dollars 0:18:59.320 --> 0:19:03.000 seventy cents. Eighteen fifteen eighty announced the euro one point 0:19:03.200 --> 0:19:05.600 six six one against the dollar. British found one point 0:19:05.600 --> 0:19:08.639 to zero six three, and that's a bloomberg business flash 0:19:08.640 --> 0:19:11.000 Shall Here's Michael Barr with more on what's going on 0:19:11.040 --> 0:19:13.960 around the world. Unchael, Good morning, Good morning, Karen. President 0:19:14.040 --> 0:19:17.440 Biden has approved New York's emergency electoration as the death 0:19:17.480 --> 0:19:20.800 toll from a pre Christmas blizzard that paralyzed the Buffalo 0:19:20.920 --> 0:19:23.560 area and much of the country has risen to twenty eight. 0:19:23.920 --> 0:19:26.000 The dead have been found in their cars, homes, and 0:19:26.080 --> 0:19:29.840 in snow banks. Meanwhile, thousands of flights were canceled or delayed, 0:19:29.880 --> 0:19:33.639 and more are scrapped for today. South Korea sent drones 0:19:33.680 --> 0:19:36.960 across the border into North Korea. It's an unprecedented tit 0:19:37.160 --> 0:19:41.320 for tat military move after Kim joan UN's regime dispatched 0:19:41.359 --> 0:19:45.600 five unmanned aerial vehicles into its air space. Monday night football, 0:19:45.640 --> 0:19:48.880 the Chargers beat the Colts twenty three in the NBA. 0:19:49.119 --> 0:19:51.800 The nets one Global News twenty four hours a day 0:19:51.840 --> 0:19:54.680 on air hand on Bloomberg Quick Take, powered by more 0:19:55.000 --> 0:19:58.520 than twenty seven hundred journalists and analysts more than twenty countries. 0:19:58.760 --> 0:20:01.240 Michael Barr, this is Bloomberg, John, Michael, thank you. It 0:20:01.400 --> 0:20:04.480 is now five twenty three on Wall Street. I'm John Tucker. 0:20:04.640 --> 0:20:07.840 This is Bloomberg Daybreak. The stocks are getting a boost 0:20:07.840 --> 0:20:10.880 this morning, and where that China is removing its last 0:20:10.920 --> 0:20:14.280 COVID restrictions. Let's take a deeper dive into this story 0:20:14.400 --> 0:20:17.639 this morning with Bloomberg reporter Alan Juan, who joins us 0:20:17.680 --> 0:20:20.760 this morning from Shanghai. Alan, thanks for being with us, 0:20:20.760 --> 0:20:22.920 appreciate it. What can you tell us about what China 0:20:23.040 --> 0:20:27.000 is doing? From January eight, China is no longer going 0:20:27.000 --> 0:20:30.360 to require inbound visitors to quarantine at the hotels anymore. 0:20:30.800 --> 0:20:33.600 I mean, basically, it's getting rid of policy that's curb travel, 0:20:33.720 --> 0:20:37.000 hurt economy, and left the country actually from the rest 0:20:37.040 --> 0:20:39.760 of the world that's said, it's still going to require 0:20:40.240 --> 0:20:44.720 travel arrivals to to show negative PCR test results taken 0:20:44.720 --> 0:20:47.960 within forty hours of departure. But you know something that's 0:20:48.040 --> 0:20:50.240 nothing competible we have right now. I mean, right now 0:20:50.240 --> 0:20:52.560 it's like about five days of the whole took quarantine 0:20:53.119 --> 0:20:56.480 and another three days at a home monitoring. UM. I myself, 0:20:56.480 --> 0:21:00.359 I've done two long quarantines after leaving China coming Act 0:21:00.359 --> 0:21:03.280 one for fourteen days and one for ten days, and 0:21:03.320 --> 0:21:06.119 I tell you it's it's pretty brutal. So I'm actually 0:21:06.119 --> 0:21:09.760 looking forward to this change in policy. This mean COVID, 0:21:10.119 --> 0:21:12.840 uh the outbreak has gotten better in China or the 0:21:12.880 --> 0:21:17.280 government's just throwing in the towel. Now the COVID is 0:21:17.280 --> 0:21:21.440 not getting better, um and maybe Peaking and Beijing, Shanghai, 0:21:21.520 --> 0:21:24.479 we're still in the midst of it. Uh So right 0:21:24.480 --> 0:21:28.040 now we're giving about three or four thousand, officially three 0:21:28.119 --> 0:21:30.600 or four cases of the day, which sort of flies 0:21:30.600 --> 0:21:33.240 in the face of everything we're seeing on the ground 0:21:33.320 --> 0:21:36.560 and what some of the provinces of reporting like, for example, 0:21:36.880 --> 0:21:40.639 Judge and Province, which is actually Shanghai, reported one million 0:21:40.680 --> 0:21:45.119 cases and expects another million more before it peaks. And 0:21:45.160 --> 0:21:47.639 what we do. What we also know is that about 0:21:47.760 --> 0:21:50.760 the eighteen percent almost two and fifteen million people have 0:21:50.920 --> 0:21:54.520 already been infected and acts according to the China's National 0:21:54.520 --> 0:21:57.040 Health Commission. UH this was for the minutes of one 0:21:57.080 --> 0:22:00.600 of their meetings. Have they given in any indication that 0:22:00.680 --> 0:22:04.680 they could go back to the restrict of COVID policies? No, 0:22:04.800 --> 0:22:08.080 I I think it's over. I did. China has dismantle 0:22:08.400 --> 0:22:11.600 the whole apparatus right now, you know, there's I'm just 0:22:11.600 --> 0:22:14.600 I'm stunning how fast everything has occurred. Right now, there's 0:22:14.600 --> 0:22:16.679 no there's no longer a need to get any kind 0:22:16.680 --> 0:22:18.720 of PC artists, and even if you want to want 0:22:18.760 --> 0:22:21.119 to get one, it's kind of hard to find. I 0:22:21.520 --> 0:22:24.720 think we've gone in the other direction, which is basically, UM, 0:22:24.800 --> 0:22:29.080 you know, let it fly. Yeah, Well, what next at 0:22:29.520 --> 0:22:34.119 this point? I mean, they're still doing monitoring, are they not? UM? 0:22:34.160 --> 0:22:37.960 You know, China is UM. You know, they're they're trying 0:22:37.960 --> 0:22:42.320 to mitigate some of these UM. Illnesses and deaths right 0:22:42.400 --> 0:22:45.440 right now, they're they're downgrading the management of COVID zero 0:22:45.560 --> 0:22:49.240 from highest level to the second highest, meaning that they're 0:22:49.240 --> 0:22:52.520