1 00:00:02,440 --> 00:00:05,880 Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg 2 00:00:05,920 --> 00:00:09,720 Speaker 1: day Break for Thursday, December one, two. Coming up this hour, 3 00:00:10,240 --> 00:00:12,920 Speaker 1: j Palell moves markets as he signals the pace of 4 00:00:13,000 --> 00:00:16,760 Speaker 1: rate hikes will slow more signs China is softening its 5 00:00:16,800 --> 00:00:20,720 Speaker 1: stands on COVID restrictions. Sam bankman Fried speaks out about 6 00:00:20,720 --> 00:00:23,680 Speaker 1: the collapse of ft X, and a standoff between Elon 7 00:00:23,760 --> 00:00:27,720 Speaker 1: Musk and Tim Cook appears to ease New York subway 8 00:00:27,720 --> 00:00:30,240 Speaker 1: writers may see fears go up next year. Plus, a 9 00:00:30,280 --> 00:00:33,880 Speaker 1: House committee now has President Trump's tax returns. On Michael 10 00:00:33,920 --> 00:00:37,680 Speaker 1: blarm More Ahead, I'm John Standstoward. Sports another home loss 11 00:00:37,720 --> 00:00:40,080 Speaker 1: for the Knicks, beaten by the Bucks, the Nets beat 12 00:00:40,120 --> 00:00:45,320 Speaker 1: the Wizards, the Rangers one in Ottawa. That's all trended 13 00:00:45,360 --> 00:00:48,680 Speaker 1: ahead on Bloomberg day Break on Bloomberg. He Living Free 14 00:00:48,680 --> 00:00:53,120 Speaker 1: on New York Bloomberg one, Washington, d C, Bloomberg one 15 00:00:53,120 --> 00:00:57,600 Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Sirius 16 00:00:57,800 --> 00:01:01,160 Speaker 1: x M one nineteen and around the world Bloombird Radio 17 00:01:01,280 --> 00:01:08,720 Speaker 1: dot Com and via the Bloombird Business app the Thursday Morning. 18 00:01:08,760 --> 00:01:12,160 Speaker 1: I'm Amy Morris, I'm Nathan Hagar futures are moving lower 19 00:01:12,200 --> 00:01:14,160 Speaker 1: this morning. We're coming up to six o one on 20 00:01:14,240 --> 00:01:16,600 Speaker 1: Wall Street, and we check the markets every fifteen minutes 21 00:01:16,600 --> 00:01:19,520 Speaker 1: starting the trading day. On bloomberg SMP futures are down 22 00:01:19,600 --> 00:01:23,040 Speaker 1: down five points, Stown features down sixty nine, NASTAC futures 23 00:01:23,040 --> 00:01:26,360 Speaker 1: are lower by thirty seven points ten. Your treasury is 24 00:01:26,360 --> 00:01:28,440 Speaker 1: a little changed now. The yield three point six zero 25 00:01:28,480 --> 00:01:31,119 Speaker 1: percent yield on the two year four point three two percent. 26 00:01:31,600 --> 00:01:34,319 Speaker 1: Nimex screws up six tenths per center forty five cents 27 00:01:34,319 --> 00:01:36,920 Speaker 1: at eighty one dollars A barrel comes gold is up 28 00:01:36,920 --> 00:01:39,360 Speaker 1: one point seven percent, up thirty dollars fifty cents. It's 29 00:01:39,360 --> 00:01:43,039 Speaker 1: seventy announced. The euro one point zero four two two 30 00:01:43,040 --> 00:01:45,400 Speaker 1: against the dollar, the yen one thirty six point four 31 00:01:45,440 --> 00:01:49,680 Speaker 1: four Amy Nathan, we begin with market moving remarks from JPL, 32 00:01:49,840 --> 00:01:52,640 Speaker 1: the FED chair signaling the Central Bank will back off 33 00:01:52,720 --> 00:01:55,600 Speaker 1: its aggressive base of interest rate hikes as soon as 34 00:01:55,720 --> 00:01:58,360 Speaker 1: this month. The time for moderating the pace of rate 35 00:01:58,400 --> 00:02:01,200 Speaker 1: increases may come as soon as the December meeting. Given 36 00:02:01,200 --> 00:02:04,400 Speaker 1: our our progress in tightening policy, the timing of that 37 00:02:04,480 --> 00:02:07,080 Speaker 1: moderation is far less significant than the questions of how 38 00:02:07,160 --> 00:02:10,480 Speaker 1: much further we will need to raise grades to control inflation. 39 00:02:10,880 --> 00:02:14,160 Speaker 1: Powell's remarks solidified bets the Fed will downshift to a 40 00:02:14,200 --> 00:02:17,880 Speaker 1: fifty basis point rate hike on December four, after delivering 41 00:02:17,919 --> 00:02:21,280 Speaker 1: four straight seventy five basis point moves. Like what, the 42 00:02:21,360 --> 00:02:24,799 Speaker 1: markets surged on Powell's comments. Say. The SMP five hundred 43 00:02:24,880 --> 00:02:27,280 Speaker 1: rallied more than three percent to close it a two 44 00:02:27,280 --> 00:02:30,840 Speaker 1: month high. The NASTAC one hundred jumped four point four percent, 45 00:02:31,160 --> 00:02:34,040 Speaker 1: and with the Dow's seven hundred thirty seven point advanced, 46 00:02:34,080 --> 00:02:37,880 Speaker 1: that index is now up from its September low. That 47 00:02:37,960 --> 00:02:41,160 Speaker 1: meets the definition of a bull market. Sobadra ra Joppa's 48 00:02:41,200 --> 00:02:44,040 Speaker 1: head of US rate strategy associate a general, So, I 49 00:02:44,040 --> 00:02:46,799 Speaker 1: think if you have a picture where inflation is starting 50 00:02:46,840 --> 00:02:49,360 Speaker 1: to moderate, then they might be willing to kind of 51 00:02:49,400 --> 00:02:52,440 Speaker 1: be patient, keep rates steady for the domainder of next 52 00:02:52,520 --> 00:02:55,840 Speaker 1: year UH and then start to orchestrate a soft landing. 53 00:02:56,120 --> 00:03:00,240 Speaker 1: Sbadra Japa expects rates to stay elevated not only next year, 54 00:03:00,280 --> 00:03:03,840 Speaker 1: but into and we saw the Wall Street rally spill 55 00:03:03,960 --> 00:03:06,919 Speaker 1: into markets overseas. Stocks in Europe are up about a 56 00:03:06,919 --> 00:03:11,320 Speaker 1: half percent. Equities in Asia advanced overnight extending gains after 57 00:03:11,320 --> 00:03:14,680 Speaker 1: their best monthly rally in twenty four years. Let's get 58 00:03:14,720 --> 00:03:18,399 Speaker 1: the recap from Bloomberg's Juliet Sally in Singapore. Good morning, Juliette, 59 00:03:18,440 --> 00:03:21,040 Speaker 1: Good morning, Nathan and Amy. After capping a fifteen percent 60 00:03:21,080 --> 00:03:23,520 Speaker 1: gain in November, the m s ci Asia Pacific Index 61 00:03:23,600 --> 00:03:25,680 Speaker 1: jumped as much as two and a half percent Thursday 62 00:03:25,720 --> 00:03:28,600 Speaker 1: to in August high and is inching closer towards a 63 00:03:28,639 --> 00:03:31,560 Speaker 1: bull market. Gauges in China, Hong Kong and Taiwan led 64 00:03:31,600 --> 00:03:34,440 Speaker 1: gains after a top Chinese officials said efforts to combat 65 00:03:34,440 --> 00:03:37,480 Speaker 1: the virus entering a new phase, with the omicron variant 66 00:03:37,520 --> 00:03:42,440 Speaker 1: weakening and vaccination rates rising. Meanwhile, Beijing some restrictions, lifting 67 00:03:42,480 --> 00:03:45,040 Speaker 1: the on and the yen traded at a three month 68 00:03:45,120 --> 00:03:49,040 Speaker 1: high in Singapore. Juliette Sally Bloomberg Day Break, Juliet Thanks. 69 00:03:49,080 --> 00:03:52,000 Speaker 1: COVID policies remained front and center in China, and we're 70 00:03:52,000 --> 00:03:54,680 Speaker 1: seeing more signs Beijing may be willing to soften its 71 00:03:54,680 --> 00:03:58,520 Speaker 1: stance on virus restrictions. Bloomberg Executive editor Paul Dobson has 72 00:03:58,560 --> 00:04:01,880 Speaker 1: more from our Singapore bureau today. We learned that in Beijing, 73 00:04:01,960 --> 00:04:04,760 Speaker 1: some people may be allowed to quarantine at home instead 74 00:04:04,760 --> 00:04:07,280 Speaker 1: of going to quarantine camps, which is obviously good news 75 00:04:07,280 --> 00:04:09,080 Speaker 1: because people would much rather be in the comfort of 76 00:04:09,120 --> 00:04:11,600 Speaker 1: their own homes given the choice a lot of the time. 77 00:04:12,160 --> 00:04:14,400 Speaker 1: Um and and it might give them a little bit 78 00:04:14,440 --> 00:04:16,760 Speaker 1: more confidence to go out at about when when COVID 79 00:04:16,839 --> 00:04:20,479 Speaker 1: isn't around incremensity, that's good news. But directionally that's very 80 00:04:20,520 --> 00:04:23,360 Speaker 1: good news because you know, the market is waiting for 81 00:04:23,880 --> 00:04:27,640 Speaker 1: China to take these decisive steps, you know, the vaccinations 82 00:04:27,640 --> 00:04:30,960 Speaker 1: that are needed for the elderly, the increase in hospital 83 00:04:31,040 --> 00:04:34,440 Speaker 1: beds to be able to start that process of opening up, 84 00:04:34,440 --> 00:04:36,279 Speaker 1: which the rest of the world has already, you know, 85 00:04:36,320 --> 00:04:39,440 Speaker 1: way ahead of Bloomberg's Paul Dobson says, it's been three 86 00:04:39,520 --> 00:04:43,440 Speaker 1: years since the world's first documented coronavirus patient emerged in China, 87 00:04:43,800 --> 00:04:46,039 Speaker 1: and Nathan back here in the US, we are hearing 88 00:04:46,120 --> 00:04:49,400 Speaker 1: public comments now from Sam Bankman freed for the first time, 89 00:04:49,720 --> 00:04:53,080 Speaker 1: the disgraced founder and CEO of the bankrupt FDx crypto 90 00:04:53,120 --> 00:04:57,840 Speaker 1: Empire is denying fraud while admitting to grievous errors in management. 91 00:04:58,200 --> 00:05:00,719 Speaker 1: Whatever happened, why ever it happened, I had a duty 92 00:05:00,720 --> 00:05:03,800 Speaker 1: added duty to all of our stakeholders, to our customers, 93 00:05:04,400 --> 00:05:07,160 Speaker 1: our frederors, a head of duty for employees, for investors, 94 00:05:07,320 --> 00:05:10,840 Speaker 1: and to the regulators in the world to do right 95 00:05:10,880 --> 00:05:12,640 Speaker 1: by them, to make sure the right things happened to 96 00:05:12,720 --> 00:05:15,240 Speaker 1: the company. And uh, they're the I'd do a good 97 00:05:15,279 --> 00:05:17,919 Speaker 1: job of that. I was shocked by what happened this month, 98 00:05:18,760 --> 00:05:21,400 Speaker 1: Sam Bankman. Freed made the comments by video link at 99 00:05:21,400 --> 00:05:24,000 Speaker 1: the New York Times Deal Book Summit. There are still 100 00:05:24,080 --> 00:05:27,120 Speaker 1: unanswered questions about how FTX ended up with an eight 101 00:05:27,200 --> 00:05:29,880 Speaker 1: billion dollar hole in its balance sheet and whether it 102 00:05:30,000 --> 00:05:33,560 Speaker 1: mishandled customer funds well. Meantime, amy has standoff between two 103 00:05:33,560 --> 00:05:36,640 Speaker 1: of the world's most powerful tech leaders appears to be easy. 104 00:05:36,839 --> 00:05:39,800 Speaker 1: Let's get the details live from Bloomberg. Steve Rappaport, Good 105 00:05:39,839 --> 00:05:42,719 Speaker 1: Morning State, Good morning making a namy Elon. Musk is 106 00:05:42,760 --> 00:05:45,680 Speaker 1: burying the hatchet with Apple CEO Tim Cook, saying the 107 00:05:45,720 --> 00:05:48,520 Speaker 1: tip between the tech giants was a misunderstanding that has 108 00:05:48,560 --> 00:05:51,960 Speaker 1: been resolved. The Twitter boss claimed without explanation that Apple 109 00:05:51,960 --> 00:05:54,400 Speaker 1: threatened to block the platform from its app store, but 110 00:05:54,520 --> 00:05:57,440 Speaker 1: yesterday Musk's confirmed he spoke with Cook and says Cook 111 00:05:57,520 --> 00:06:00,839 Speaker 1: assured him Apple never even considered doing so, a number 112 00:06:00,839 --> 00:06:03,960 Speaker 1: of businesses paused advertising on Twitter because of concerns about 113 00:06:04,040 --> 00:06:06,960 Speaker 1: Musk's approach to moderating content. Live in New York, I'm 114 00:06:07,000 --> 00:06:10,080 Speaker 1: Steve Rappaport, Bloomberg Daybreak. All right, thank you, Steve. Now, 115 00:06:10,160 --> 00:06:12,360 Speaker 1: let's get the latest on efforts to avert a crippling 116 00:06:12,440 --> 00:06:15,880 Speaker 1: freight rail strike. The House has passed legislation to block 117 00:06:15,920 --> 00:06:18,240 Speaker 1: a strike, sending it to the Senate, which could take 118 00:06:18,240 --> 00:06:20,920 Speaker 1: action as soon as this week. The House also passed 119 00:06:20,920 --> 00:06:23,159 Speaker 1: a related bill that would add seven days of paid 120 00:06:23,200 --> 00:06:26,520 Speaker 1: sickly to the rail contract. Bloomberg's Joe Matthew spoke about 121 00:06:26,520 --> 00:06:29,320 Speaker 1: that with Art Wheaton, director of Labor Studies at Cornell 122 00:06:29,440 --> 00:06:33,800 Speaker 1: University's School of Industrial and Labor Relations. I agree that 123 00:06:33,960 --> 00:06:36,880 Speaker 1: the workers deserve the seven days off, but they need 124 00:06:36,920 --> 00:06:39,919 Speaker 1: to get enough votes in the Senate for it to pass. 125 00:06:40,000 --> 00:06:42,840 Speaker 1: Otherwise we have a strike. I would guess they're not 126 00:06:42,920 --> 00:06:45,560 Speaker 1: going to add the seven days in the Senate. Art 127 00:06:45,560 --> 00:06:48,440 Speaker 1: Wheaton is director of Labor Studies at Cornell University. He 128 00:06:48,520 --> 00:06:50,839 Speaker 1: was a guest on Sound on Herd weekdays at five 129 00:06:50,880 --> 00:06:54,000 Speaker 1: pm Wall Street Time here on Bloomberg Radio. Finally, Amy 130 00:06:54,040 --> 00:06:57,200 Speaker 1: as inflation pressures remain high. A new survey says New 131 00:06:57,279 --> 00:07:00,560 Speaker 1: York City and Singapore are the most expensive of cities 132 00:07:00,600 --> 00:07:03,800 Speaker 1: to live in. The report comes from the Economist Intelligence 133 00:07:03,880 --> 00:07:07,200 Speaker 1: Unit Tel Aviv, Hong Kong, and Los Angeles round out 134 00:07:07,200 --> 00:07:09,920 Speaker 1: the top five. The survey says the cost of living 135 00:07:09,960 --> 00:07:12,880 Speaker 1: in the world's largest cities rose more than eight percent 136 00:07:13,080 --> 00:07:15,880 Speaker 1: over the past year. Straight ahead, we'll bring your latest 137 00:07:15,960 --> 00:07:19,040 Speaker 1: local headlines and a check of sports. This is Bloomberg. 138 00:07:23,120 --> 00:07:25,320 Speaker 1: Thank you, Nathan, six oh seven on Wall Street. Now, 139 00:07:25,400 --> 00:07:27,560 Speaker 1: let's bringing Michael Barr to find out what else is 140 00:07:27,600 --> 00:07:29,720 Speaker 1: going on in New York and around the world. Good 141 00:07:29,760 --> 00:07:32,840 Speaker 1: morning Michael, Good morning Amy. New York's mt A may 142 00:07:32,880 --> 00:07:37,000 Speaker 1: boost fares on subways, buses, and commuter rail lines by 143 00:07:37,040 --> 00:07:40,160 Speaker 1: five point five percent next year. It is the first 144 00:07:40,200 --> 00:07:43,200 Speaker 1: time the transit provider has implemented such a hike since 145 00:07:44,680 --> 00:07:48,480 Speaker 1: the MTA faces a potential three billion dollar budget deficit 146 00:07:49,880 --> 00:07:54,080 Speaker 1: as weekday ridership has plantawed to about six a pre 147 00:07:54,240 --> 00:07:57,680 Speaker 1: pandemic levels. The m t A tends to increase fares 148 00:07:57,720 --> 00:08:00,920 Speaker 1: by four percent every two years, but Governor Kathy Hoco 149 00:08:01,000 --> 00:08:04,200 Speaker 1: postpone tho science during the pandemic. The house ways and 150 00:08:04,280 --> 00:08:07,600 Speaker 1: means committee will get to look through Donald Trump's tax returns, 151 00:08:07,800 --> 00:08:10,760 Speaker 1: Bloomberg said Baxter as the story the i R s 152 00:08:10,800 --> 00:08:13,040 Speaker 1: as it is complied with the Supreme Court and making 153 00:08:13,040 --> 00:08:16,240 Speaker 1: the returns available, did not confirm whether members of the 154 00:08:16,280 --> 00:08:19,720 Speaker 1: panel have accessed them. The committee reportedly will meet today 155 00:08:19,760 --> 00:08:22,720 Speaker 1: to decide what to do with the returns. This has 156 00:08:22,720 --> 00:08:24,960 Speaker 1: been a long journey, as a committee has been seeking 157 00:08:24,960 --> 00:08:29,080 Speaker 1: the documents since twenty Trump had repeatedly said during the 158 00:08:29,120 --> 00:08:31,960 Speaker 1: campaign that he would make the returns public, but then 159 00:08:32,080 --> 00:08:34,760 Speaker 1: fought all the way to the Supreme Court. The committee 160 00:08:34,800 --> 00:08:37,360 Speaker 1: has argued it needs to see the returns to draft 161 00:08:37,440 --> 00:08:41,959 Speaker 1: legislation on presidential compliance with tax law. In San Francisco, 162 00:08:42,000 --> 00:08:45,240 Speaker 1: I'm at Baxter Bloomberg Daybreak. The US Appeals Court rejected 163 00:08:45,280 --> 00:08:48,840 Speaker 1: the Biden administration's request to reinstate the student debt relief plan. 164 00:08:49,400 --> 00:08:52,400 Speaker 1: President Biden announced in August that the government would forgive 165 00:08:52,520 --> 00:08:55,520 Speaker 1: up to ten thousand dollars in student loan debt for 166 00:08:55,679 --> 00:08:59,760 Speaker 1: borrowers making less than one twenty five thousand dollars a year. 167 00:09:00,200 --> 00:09:03,959 Speaker 1: About twenty six million Americans have applied for student loan forgiveness. 168 00:09:04,200 --> 00:09:08,720 Speaker 1: Loyola Law University Professor Lorie Levinson. These loans are supposed 169 00:09:08,720 --> 00:09:12,720 Speaker 1: to be repaid starting in January, and unless a court 170 00:09:12,920 --> 00:09:16,840 Speaker 1: uphold surfieding plan, then these people who thought they would 171 00:09:16,880 --> 00:09:20,160 Speaker 1: have their loans forgiven will have to start paying. Professor 172 00:09:20,240 --> 00:09:23,319 Speaker 1: Lorie Levinson says the next stop is likely the Supreme Court. 173 00:09:23,800 --> 00:09:27,600 Speaker 1: The New York Grid Operator warned that electricity supplies will 174 00:09:27,640 --> 00:09:29,920 Speaker 1: be tied as early as twenty three as the man 175 00:09:30,040 --> 00:09:34,400 Speaker 1: grows and old generators shut down, increasing the risk of blackouts. 176 00:09:34,800 --> 00:09:38,000 Speaker 1: The New York Independent System Operators says the availability of 177 00:09:38,040 --> 00:09:41,520 Speaker 1: power supplies will then over the next decade as more 178 00:09:41,559 --> 00:09:44,920 Speaker 1: power plants fueled by natural gas shut down and the 179 00:09:44,960 --> 00:09:48,839 Speaker 1: man grows for electric vehicles and home heating. Global News 180 00:09:48,840 --> 00:09:51,400 Speaker 1: twenty four hours a day on air and on Bloomberg 181 00:09:51,480 --> 00:09:54,439 Speaker 1: Quick Tank, powered by more than twenty seven under journalist 182 00:09:54,440 --> 00:09:57,280 Speaker 1: and analysts more than a hundred twenty countries. Michael Barr 183 00:09:57,280 --> 00:10:03,240 Speaker 1: and this is Bloombergaining. All right, thank you make for 184 00:10:03,320 --> 00:10:05,559 Speaker 1: the sports report, brought to you by Try State Outy. 185 00:10:05,679 --> 00:10:07,959 Speaker 1: Here's john s dash Our all right, thanks Amy. The 186 00:10:08,040 --> 00:10:10,160 Speaker 1: Knicks one of their first three home games this season. 187 00:10:10,240 --> 00:10:13,000 Speaker 1: Since then at the Garden, they've gone one and six 188 00:10:13,440 --> 00:10:15,199 Speaker 1: beaten by the Bucks one oh nine, one oh three 189 00:10:15,240 --> 00:10:17,800 Speaker 1: too much. Jana's sons in the compo thirty seven points. 190 00:10:17,920 --> 00:10:20,520 Speaker 1: R J. Barrett of the Knicks with twenty six. Julius 191 00:10:20,600 --> 00:10:23,400 Speaker 1: Randalls had only eight of twenty four, Jalen Brunson eight 192 00:10:23,440 --> 00:10:25,840 Speaker 1: of twenty two. Together, they were just one of twelve 193 00:10:25,920 --> 00:10:29,280 Speaker 1: on three pointers the nets in Brooklyn Pete, Washington one 194 00:10:29,400 --> 00:10:31,800 Speaker 1: one oh seven. That's three straight wins to move over 195 00:10:31,840 --> 00:10:35,360 Speaker 1: five hundred. Kevin Durant continues his terrific season, averaging thirty 196 00:10:35,360 --> 00:10:39,319 Speaker 1: per game, shooting fifty five. Durant scored thirty nine Kyrie 197 00:10:39,360 --> 00:10:42,520 Speaker 1: Irving at its twenty seven. Rangers in Ottawa had the lead, 198 00:10:42,600 --> 00:10:44,520 Speaker 1: looking for more of the Rangers control of the draw, 199 00:10:44,640 --> 00:10:46,960 Speaker 1: send it back up with Savannah Jat up the middle, 200 00:10:47,040 --> 00:10:49,280 Speaker 1: leaves the back into the far wing for VC spins 201 00:10:49,320 --> 00:10:51,880 Speaker 1: to his forehead and backhands upon and at the Savannah Jat. 202 00:10:52,120 --> 00:10:54,680 Speaker 1: Savannah Jat slings it to the newer point and lingery 203 00:10:54,720 --> 00:10:57,800 Speaker 1: with a and they store Prider was in front. I 204 00:10:57,840 --> 00:11:00,000 Speaker 1: think he deflected it and the Rangers take up three 205 00:11:00,520 --> 00:11:02,559 Speaker 1: ESPN New York CALLI it was Grider is eleven goal 206 00:11:02,600 --> 00:11:04,600 Speaker 1: he at fifty two. Last year, the Rangers beat the 207 00:11:04,679 --> 00:11:09,160 Speaker 1: Senators three to one. College Jus Rutgers lost in Miami 208 00:11:09,040 --> 00:11:11,719 Speaker 1: s one Big ten a c C Challenge. The two 209 00:11:11,760 --> 00:11:15,440 Speaker 1: conferences split six games Tuesday and split six more last night, 210 00:11:15,480 --> 00:11:18,240 Speaker 1: Indiana beating North Carolina, who began the season right number 211 00:11:18,240 --> 00:11:21,080 Speaker 1: one Tario's and now lost three in a row. Australia, 212 00:11:21,200 --> 00:11:24,120 Speaker 1: Argentina and Poland all earned their way into the World 213 00:11:24,120 --> 00:11:27,000 Speaker 1: Cup knockout round. France had already flints and four more 214 00:11:27,080 --> 00:11:30,520 Speaker 1: spots up for grabs today. In guitar, the Giants will 215 00:11:30,559 --> 00:11:32,800 Speaker 1: have a visitor at the facility today and old fred 216 00:11:32,840 --> 00:11:35,640 Speaker 1: O'Dell Beckham, the ex Giant, has not played this season, 217 00:11:36,000 --> 00:11:38,040 Speaker 1: now said to have recovered from the torn a c 218 00:11:38,200 --> 00:11:40,040 Speaker 1: l suffered in the Super Bowl while he was with 219 00:11:40,120 --> 00:11:43,840 Speaker 1: the Rams. The Cowboys also very much interested in signing Jack. 220 00:11:44,280 --> 00:11:47,720 Speaker 1: That's Stashward Bloomberg Sports Team. All right, thank you, John. 221 00:11:47,880 --> 00:11:51,240 Speaker 1: Futures are lower s and P features down one, pot 222 00:11:51,559 --> 00:11:55,640 Speaker 1: Dal futures down forty seven, NAZAC features down twenty four points. 223 00:11:56,000 --> 00:11:58,480 Speaker 1: Much more to come on this Thursday morning edition of 224 00:11:58,480 --> 00:12:07,720 Speaker 1: Bloomberg Daybreak. Stay with us. This is Bloomberg, The Bloomberg 225 00:12:07,760 --> 00:12:09,959 Speaker 1: Sports Report was brought to you by Audie. Don't let 226 00:12:09,960 --> 00:12:12,880 Speaker 1: someone else drive off and the Audi model you've always wanted. 227 00:12:12,960 --> 00:12:15,360 Speaker 1: Visit your local Tri state autie dealer to get behind 228 00:12:15,400 --> 00:12:17,760 Speaker 1: the wheel of yours today, or visit Autie Offers dot 229 00:12:17,760 --> 00:12:24,480 Speaker 1: com for more information, markets, headlines and breaking news twenty 230 00:12:24,480 --> 00:12:27,359 Speaker 1: four hours a day at Bloomberg dot com, the Bloomberg 231 00:12:27,360 --> 00:12:37,000 Speaker 1: Business Outland at Bloomberg Quick Tape, She's a Bloomberg Business Lash. 232 00:12:37,440 --> 00:12:40,000 Speaker 1: I'm Nathan Hagar. Futures are moving just to touch lower 233 00:12:40,000 --> 00:12:43,760 Speaker 1: after Yesterday's surge following FED Chair Powell's remarks at the 234 00:12:43,760 --> 00:12:47,640 Speaker 1: Brookings Institution confirming the pace of interest rate hikes will slow. 235 00:12:47,800 --> 00:12:50,199 Speaker 1: We checked the markets every fifteen minutes during the trading 236 00:12:50,280 --> 00:12:53,680 Speaker 1: day on Bloomberg SMP futures right now are down four points, 237 00:12:53,679 --> 00:12:56,839 Speaker 1: STOW futures down six five. Nasty futures are lower by 238 00:12:56,840 --> 00:12:59,200 Speaker 1: thirty four points. The tenure Treasury is up one thirty 239 00:12:59,240 --> 00:13:02,080 Speaker 1: second deal three point six zero percent build on the 240 00:13:02,080 --> 00:13:04,760 Speaker 1: two year four point three two percent. IMAX Screwed is 241 00:13:04,840 --> 00:13:07,400 Speaker 1: up eight tenths percent, up sixty three cents eighty one 242 00:13:07,400 --> 00:13:10,559 Speaker 1: dollar nineteen cents for a barrel of West Texas Intermediate 243 00:13:10,559 --> 00:13:13,200 Speaker 1: Comex gold is up one eight percent, up thirty one 244 00:13:15,480 --> 00:13:17,760 Speaker 1: an ounce, the euro one point zero four two one 245 00:13:17,800 --> 00:13:20,040 Speaker 1: against the dollar. The end is at one thirty six 246 00:13:20,080 --> 00:13:23,200 Speaker 1: point four two. Bitcoins down almost a ten percent, just 247 00:13:23,240 --> 00:13:26,319 Speaker 1: shy of seventeen thousand, one hundred. That's a Bloomberg business flash. 248 00:13:26,360 --> 00:13:28,880 Speaker 1: And now here's Michael Barr McK more on let's going 249 00:13:28,960 --> 00:13:31,400 Speaker 1: on around the world. Michael Nathan, thank you very much. 250 00:13:31,440 --> 00:13:33,440 Speaker 1: A House committee can now get a look at six 251 00:13:33,520 --> 00:13:36,480 Speaker 1: years of Donald Trump's tax returns. It comes a week 252 00:13:36,520 --> 00:13:39,040 Speaker 1: after the Supreme Court cleared the way for their release. 253 00:13:39,480 --> 00:13:43,120 Speaker 1: More Chinese cities are easing some anti virus restrictions as 254 00:13:43,160 --> 00:13:47,160 Speaker 1: police patrol their streets to head off protests demonstrators, and 255 00:13:47,200 --> 00:13:50,360 Speaker 1: several cities demanded an end to controls that can find 256 00:13:50,440 --> 00:13:53,160 Speaker 1: millions of people to their homes. In the NBA, the 257 00:13:53,240 --> 00:13:56,000 Speaker 1: next lost, the Nets beat the Wizards the Celtics one. 258 00:13:56,280 --> 00:13:59,160 Speaker 1: In the NHL, the Rangers won at the World Cup 259 00:13:59,200 --> 00:14:03,079 Speaker 1: four games to including Germany against Costa Rica. Global News 260 00:14:03,080 --> 00:14:05,800 Speaker 1: twenty four hours a day on air and on Bloomberg 261 00:14:05,840 --> 00:14:08,440 Speaker 1: Quick Tank, powered by more than twenty seven un your 262 00:14:08,520 --> 00:14:12,200 Speaker 1: journalist and analysts, more than twenty countries Michael Laren, this 263 00:14:12,400 --> 00:14:15,360 Speaker 1: is Bloomberg Amy. All right, thank you, Michael. It's six 264 00:14:15,480 --> 00:14:19,160 Speaker 1: nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios. 265 00:14:19,200 --> 00:14:22,640 Speaker 1: This is Bloomberg Daybreak. FED Jair J. Powell signaled the 266 00:14:22,680 --> 00:14:26,080 Speaker 1: Federal Reserve will slow the pace of interest rate increases 267 00:14:26,160 --> 00:14:29,080 Speaker 1: next month, while stressing borrowing costs will need to keep 268 00:14:29,160 --> 00:14:32,640 Speaker 1: rising for some time to beat inflation. We welcome global 269 00:14:32,680 --> 00:14:36,880 Speaker 1: market strategist Brian Leavitt with Investco. He joins us now. Brian, 270 00:14:36,960 --> 00:14:39,520 Speaker 1: good morning to you. What's your takeaway from Fed chair 271 00:14:39,600 --> 00:14:43,320 Speaker 1: Powell's speech. You know, it's funny the market loved it. 272 00:14:43,600 --> 00:14:46,760 Speaker 1: Um to your rates came down pretty significantly. I'm not 273 00:14:46,880 --> 00:14:50,480 Speaker 1: sure that the said I'm not sure J. Powell intended 274 00:14:50,880 --> 00:14:53,800 Speaker 1: for that type of reaction from the market, but it 275 00:14:53,880 --> 00:14:56,520 Speaker 1: does suggest to me that we are getting closer to 276 00:14:56,600 --> 00:15:01,360 Speaker 1: the end of the tightening cycle and markets aren't gonna 277 00:15:01,360 --> 00:15:04,680 Speaker 1: wait till the actual pause. Markets will start to sniff 278 00:15:04,720 --> 00:15:07,920 Speaker 1: out a change in policy, and and that's how a 279 00:15:08,000 --> 00:15:11,680 Speaker 1: recovery will commence. So it may already be taking place again. 280 00:15:11,720 --> 00:15:14,760 Speaker 1: I don't think the Fed wanted that type of reaction, um, 281 00:15:14,760 --> 00:15:17,280 Speaker 1: but it's a process that we're we're moving through and 282 00:15:17,440 --> 00:15:21,160 Speaker 1: and should set the stage for a recovery in so 283 00:15:21,320 --> 00:15:25,120 Speaker 1: you don't expect a recession, then well you may have 284 00:15:25,160 --> 00:15:30,040 Speaker 1: a recession. Um. I liken it to nineteen eighty one, 285 00:15:30,040 --> 00:15:34,800 Speaker 1: where inflation did peak in nineteen eighty Volker raised rates 286 00:15:34,840 --> 00:15:36,400 Speaker 1: through the end of the year. You still had a 287 00:15:36,440 --> 00:15:40,640 Speaker 1: recession in eighty one, but the markets had already priced 288 00:15:40,680 --> 00:15:42,760 Speaker 1: in a lot of it, had already been down twenty 289 00:15:42,800 --> 00:15:46,440 Speaker 1: seven percent and started to sniff out the recovery. So 290 00:15:47,040 --> 00:15:49,760 Speaker 1: actually in that recession, markets were positive. So you may 291 00:15:49,920 --> 00:15:53,440 Speaker 1: still have a recession, but the markets are going to 292 00:15:53,640 --> 00:15:57,160 Speaker 1: lead it, lead us out of it. And so the 293 00:15:57,200 --> 00:16:02,440 Speaker 1: markets are already looking towards what that recovery maybe rather 294 00:16:02,480 --> 00:16:05,320 Speaker 1: than focus on a recession which is likely already priced in. 295 00:16:05,720 --> 00:16:07,400 Speaker 1: You know, of like the big story has been the 296 00:16:07,400 --> 00:16:10,320 Speaker 1: protests in China. How much of an impact has that had? 297 00:16:10,360 --> 00:16:14,160 Speaker 1: Can you speak to that? Well, for right now the 298 00:16:14,240 --> 00:16:17,640 Speaker 1: US markets, it's it's largely about the FED. I I 299 00:16:17,720 --> 00:16:20,400 Speaker 1: don't believe that, um, you know, the two year rate 300 00:16:20,520 --> 00:16:22,520 Speaker 1: or what the SMP five hundred has done has been 301 00:16:22,520 --> 00:16:25,880 Speaker 1: focused on Shina because I think the expectation is the 302 00:16:25,960 --> 00:16:32,000 Speaker 1: Chinese authorities will will slowly implement changes UM and and 303 00:16:32,000 --> 00:16:35,160 Speaker 1: and um placate the protesters. But I think there is 304 00:16:35,200 --> 00:16:39,680 Speaker 1: a positive in that you're starting to see in cities 305 00:16:39,800 --> 00:16:43,680 Speaker 1: in China as some of the restrictions ease and and 306 00:16:43,680 --> 00:16:46,320 Speaker 1: that of course would be a positive sign both for 307 00:16:46,360 --> 00:16:50,560 Speaker 1: global demand but also ease concerns that supply chain challenges 308 00:16:50,600 --> 00:16:53,400 Speaker 1: could re emerge. Let's bring it closer to home now 309 00:16:53,440 --> 00:16:56,160 Speaker 1: and talk about holiday shopping season. Have you seen any 310 00:16:56,200 --> 00:16:59,880 Speaker 1: indicators from this season, even though it's fairly early on, 311 00:17:00,200 --> 00:17:02,160 Speaker 1: about how what that will and how that will have 312 00:17:02,200 --> 00:17:05,560 Speaker 1: an impact. I think the most interesting thing we hear 313 00:17:05,600 --> 00:17:08,240 Speaker 1: from the holiday season is from the retail saying that 314 00:17:08,440 --> 00:17:11,240 Speaker 1: UM they're going to be aggressive with some markdowns in 315 00:17:11,320 --> 00:17:13,600 Speaker 1: order to make sure that they're not oversupplied. I mean, 316 00:17:13,640 --> 00:17:18,280 Speaker 1: that's what's interesting, is that businesses cut inventory too late 317 00:17:18,800 --> 00:17:21,640 Speaker 1: during the early days of covid UM, and now they've 318 00:17:21,680 --> 00:17:24,800 Speaker 1: been frantically trying to rebuild while the consumer is slowing. 319 00:17:25,000 --> 00:17:27,879 Speaker 1: So what I'm seeing from the holiday season is a 320 00:17:27,880 --> 00:17:32,840 Speaker 1: consumer that's hanging in there, but signs that clear signs 321 00:17:32,920 --> 00:17:36,399 Speaker 1: to me that the inflation story on goods UM is 322 00:17:36,720 --> 00:17:41,560 Speaker 1: beyond us. That's past a that's story, UM. I mean, 323 00:17:41,600 --> 00:17:45,000 Speaker 1: I'm sorry it two story. We've we've moved beyond the 324 00:17:45,040 --> 00:17:48,879 Speaker 1: inflation and goods UM and that's a positive for for 325 00:17:49,280 --> 00:17:52,000 Speaker 1: the market because it suggests again that the pause and 326 00:17:52,080 --> 00:17:55,720 Speaker 1: tightening is is probably near. Now. The NAVDAC has lost 327 00:17:55,760 --> 00:17:57,879 Speaker 1: more than a quarter of its value this year. What 328 00:17:57,920 --> 00:18:03,240 Speaker 1: do you see for the coming year? Rate? I think 329 00:18:03,280 --> 00:18:08,600 Speaker 1: that rates and inflation are still going to remain higher 330 00:18:08,680 --> 00:18:10,800 Speaker 1: than they were in the last cycle, so that's still 331 00:18:10,840 --> 00:18:14,680 Speaker 1: a bit of a headwind for longer duration assets UM. 332 00:18:14,720 --> 00:18:18,840 Speaker 1: I think that in a recovery, value stocks tend to outperform. 333 00:18:18,880 --> 00:18:22,280 Speaker 1: Now that doesn't mean growth won't make up UM or 334 00:18:22,359 --> 00:18:25,160 Speaker 1: tech stocks won't make up some of what had been lost. 335 00:18:25,200 --> 00:18:28,360 Speaker 1: But we're certainly very unlikely to go back to anywhere 336 00:18:28,440 --> 00:18:32,080 Speaker 1: near the loft evaluations that we had in the prior cycle, 337 00:18:32,160 --> 00:18:34,320 Speaker 1: because you would need to get back to a much 338 00:18:34,400 --> 00:18:37,359 Speaker 1: lower inflation in rate environment and that just doesn't seem 339 00:18:37,440 --> 00:18:40,240 Speaker 1: to be in the cards in three So from a 340 00:18:40,400 --> 00:18:45,600 Speaker 1: style perspective, I would favor the more value oriented UM 341 00:18:45,640 --> 00:18:49,000 Speaker 1: and heavily cyclical parts of the market. Again, assuming met 342 00:18:49,000 --> 00:18:52,639 Speaker 1: a recovery as we expect plays out, and just about 343 00:18:52,640 --> 00:18:54,800 Speaker 1: thirty seconds here, Brian, can you give us a little 344 00:18:54,840 --> 00:18:59,719 Speaker 1: guidance for the coming weeks and months. So my guidance 345 00:18:59,760 --> 00:19:03,600 Speaker 1: would be that you're going to enter a recovery phase 346 00:19:04,000 --> 00:19:08,040 Speaker 1: of the cycle. That seems the most likely next step. 347 00:19:08,160 --> 00:19:12,919 Speaker 1: Most investors miss it because they tend to be focusing 348 00:19:12,960 --> 00:19:16,080 Speaker 1: on the world not being good, when instead the market 349 00:19:16,119 --> 00:19:19,360 Speaker 1: cares about whether things are getting better relative to expectations. 350 00:19:19,840 --> 00:19:24,560 Speaker 1: My expectation as things will get better relative to expectations, 351 00:19:24,600 --> 00:19:27,800 Speaker 1: producing a good backdrop for risk assets. All right, Brian, 352 00:19:27,880 --> 00:19:29,720 Speaker 1: thank you very much for taking the time with us 353 00:19:29,720 --> 00:19:32,960 Speaker 1: this morning. Ending on an optimistic note. Global market strategist 354 00:19:33,240 --> 00:19:37,119 Speaker 1: Brian Levitt with Investco now checking the futures markets. S 355 00:19:37,160 --> 00:19:40,960 Speaker 1: ANDP futures are five points lower, delve futures sixties, seven 356 00:19:41,000 --> 00:19:45,440 Speaker 1: points lower, NASDAT futures down thirty seven points. Ten year 357 00:19:45,480 --> 00:19:49,040 Speaker 1: treasury unchanged, the yield at three point six percent, the 358 00:19:49,080 --> 00:19:53,080 Speaker 1: two year yield at four point three. Now I'm ex 359 00:19:53,200 --> 00:19:57,480 Speaker 1: crude now nine tenths of a percent higher. That's seventy 360 00:19:57,520 --> 00:20:01,040 Speaker 1: nine cents trading at eight thirty three sensor barrel. Much 361 00:20:01,080 --> 00:20:07,399 Speaker 1: more to come on Bloomberg daybreak. This is Bloomberg the 362 00:20:07,400 --> 00:20:10,240 Speaker 1: Bloomberg eleven three oh forecast study and breezy going up 363 00:20:10,280 --> 00:20:13,119 Speaker 1: to forty five degrees, going up to fifty tomorrow A 364 00:20:13,200 --> 00:20:15,840 Speaker 1: little mile They're showers return on Saturday, going up to 365 00:20:15,920 --> 00:20:25,920 Speaker 1: sixty degrees. Broadcasting live from the Bloomberg Interactive Broker Studio 366 00:20:26,040 --> 00:20:29,200 Speaker 1: in New York. Bloomberg in Living free to Washington, d C, 367 00:20:29,400 --> 00:20:33,120 Speaker 1: Bloomberg nine one to Boston, Bloomberg one O six one 368 00:20:33,200 --> 00:20:36,680 Speaker 1: to San Francisco, Bloomberg now sixty to the country, sirius 369 00:20:36,840 --> 00:20:39,439 Speaker 1: XM to A one nine and around the globe the 370 00:20:39,440 --> 00:20:44,480 Speaker 1: Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak. 371 00:20:50,280 --> 00:20:52,800 Speaker 1: It's six thirty on Wall Street. Good Thursday morning. I'm 372 00:20:52,840 --> 00:20:55,520 Speaker 1: Amy Morris and I'm Nathan Hager. We're about three hours 373 00:20:55,560 --> 00:20:57,439 Speaker 1: away from the open of US trading. Time for the 374 00:20:57,480 --> 00:20:59,560 Speaker 1: five things you need to know to start your day. 375 00:21:00,000 --> 00:21:03,320 Speaker 1: Out to you by Interactive Brokers. Interactive Brokers charges margin 376 00:21:03,400 --> 00:21:05,600 Speaker 1: loan rates from four point three three to five point 377 00:21:05,680 --> 00:21:09,479 Speaker 1: three rates subject to change. Learn more at ib kr 378 00:21:09,600 --> 00:21:13,480 Speaker 1: dot com. Slash compare first fed Share. J Powell is 379 00:21:13,560 --> 00:21:16,119 Speaker 1: signaling the Central Bank will ease its aggressive pace of 380 00:21:16,160 --> 00:21:18,800 Speaker 1: interest rate hikes as soon as this month. The time 381 00:21:18,800 --> 00:21:21,320 Speaker 1: for moderating the pace of rate increases may come as 382 00:21:21,359 --> 00:21:24,719 Speaker 1: soon as the December meeting. Given our our progress in 383 00:21:24,840 --> 00:21:28,240 Speaker 1: tightening policy, the timing of that moderation is far less significant. 384 00:21:28,520 --> 00:21:30,960 Speaker 1: J Pal's remarks indicate the Fed is likely to shift 385 00:21:31,000 --> 00:21:33,640 Speaker 1: down to a fifty basis point hike at its next decision. 386 00:21:33,840 --> 00:21:37,200 Speaker 1: Equity markets advanced sharply on Pal's comments. David could Love, 387 00:21:37,240 --> 00:21:40,520 Speaker 1: founder of Mainstay Capital Management, says the more dovish tone 388 00:21:40,600 --> 00:21:43,960 Speaker 1: was appropriate for current economic conditions. I think it's a 389 00:21:44,040 --> 00:21:46,600 Speaker 1: recognition too of looking at the data p M E 390 00:21:46,760 --> 00:21:50,520 Speaker 1: s or in contraction territory pending home sales down thirty 391 00:21:51,200 --> 00:21:54,639 Speaker 1: year over year, and we haven't felt the full impact 392 00:21:54,840 --> 00:21:57,960 Speaker 1: of these rate hikes we've had. David Cutler with Mainstay 393 00:21:58,000 --> 00:22:01,560 Speaker 1: Capital Management, believes Pal's calm. It's also indicate he's mindful 394 00:22:01,560 --> 00:22:03,639 Speaker 1: of the Fed going too far with great hikes. Well. 395 00:22:03,680 --> 00:22:06,320 Speaker 1: The SP five hundred closed up three per cent after 396 00:22:06,359 --> 00:22:09,840 Speaker 1: Powell's remarks. The rally extended overseas, as well as stocks 397 00:22:09,880 --> 00:22:12,760 Speaker 1: in Europe and Asia advancing. In China, there is also 398 00:22:12,760 --> 00:22:15,920 Speaker 1: optimism on COVID, with authorities now downplaying the severity of 399 00:22:15,960 --> 00:22:18,479 Speaker 1: the virus. China's COVID czar says the country's in a 400 00:22:18,480 --> 00:22:20,919 Speaker 1: new phase of the pandemic. Back in the U S. 401 00:22:20,960 --> 00:22:24,800 Speaker 1: Desgrised fd X founder Sam Bankman Freed spoke publicly yesterday 402 00:22:24,840 --> 00:22:28,320 Speaker 1: denying fraud while admitting to management errors. At a duty 403 00:22:28,520 --> 00:22:31,439 Speaker 1: to all of our stakeholders, to our customers, our freeditor 404 00:22:31,520 --> 00:22:33,639 Speaker 1: is a head of duty to our employees, to our investors, 405 00:22:33,760 --> 00:22:36,320 Speaker 1: to the regulators of the world to do right by them, 406 00:22:36,359 --> 00:22:38,280 Speaker 1: to make sure the rate things happened to the company, 407 00:22:38,280 --> 00:22:41,080 Speaker 1: and and do a good job of that. Sam Bankman 408 00:22:41,119 --> 00:22:43,320 Speaker 1: Freed spoke at the New York Times deal Books Sunne 409 00:22:43,520 --> 00:22:46,399 Speaker 1: Let's check Big Tech now Amy as standoff between two 410 00:22:46,400 --> 00:22:50,560 Speaker 1: powerful CEOs appears to be easing Bloomberg. Steve Rappaport joins 411 00:22:50,640 --> 00:22:52,640 Speaker 1: US Live with that story. Good morning Steve, Good morning 412 00:22:52,720 --> 00:22:55,840 Speaker 1: Nathan and Amy. It was all a misunderstanding. That's how 413 00:22:55,840 --> 00:22:58,920 Speaker 1: Elon Musk described his tip with Apple CEO Tim Cook. 414 00:22:59,359 --> 00:23:01,720 Speaker 1: The Twitter chief, accused Apple of threatening to boot the 415 00:23:01,760 --> 00:23:04,400 Speaker 1: platform from its app store, but on Wednesday, Musk said 416 00:23:04,440 --> 00:23:06,880 Speaker 1: the tech bosses spoke and the matter has been resolved, 417 00:23:06,960 --> 00:23:09,800 Speaker 1: with Cook reassuring him that Apple never intended to cut 418 00:23:09,800 --> 00:23:12,480 Speaker 1: ties with Twitter live in New York. I'm Steve Rappaport 419 00:23:12,520 --> 00:23:14,800 Speaker 1: Bloomberg day Break. All right, Steve. Thanks, That's the five 420 00:23:14,840 --> 00:23:16,600 Speaker 1: things you need to know to start your day, brought 421 00:23:16,640 --> 00:23:19,920 Speaker 1: to you by Interactive Brokers. SMP futures are now down 422 00:23:19,920 --> 00:23:22,800 Speaker 1: to point down. Futures down forty eight, Nasdaq futures down 423 00:23:22,920 --> 00:23:26,120 Speaker 1: twenty four points ten. Your treasuries little change, the yield 424 00:23:26,160 --> 00:23:28,200 Speaker 1: three point six zero percent. You'ld on the two year 425 00:23:28,240 --> 00:23:31,200 Speaker 1: four point three two percent. Straight ahead, your latest local 426 00:23:31,200 --> 00:23:38,520 Speaker 1: headlines and the check off sports. This is Bloomberg. It's 427 00:23:38,560 --> 00:23:40,920 Speaker 1: sixty three on Wall Street. Let's bring in Michael bar 428 00:23:41,040 --> 00:23:42,720 Speaker 1: with more on what else is going on in New 429 00:23:42,760 --> 00:23:45,639 Speaker 1: York and around the world. Good morning, Michael, Good morning Amy. 430 00:23:45,720 --> 00:23:49,440 Speaker 1: Fairs may rise next year for New York mt A writers. 431 00:23:49,760 --> 00:23:53,000 Speaker 1: Fairs on subways, buses, and commuter real lines could go 432 00:23:53,119 --> 00:23:56,159 Speaker 1: up by five point five percent next year. M t 433 00:23:56,359 --> 00:24:00,160 Speaker 1: A Chief Financial Officer Kevin Willins on ABC seven. Has 434 00:24:00,200 --> 00:24:02,959 Speaker 1: not been a fair increase, as you know, since April 435 00:24:03,000 --> 00:24:10,919 Speaker 1: of Since then, the labor wages have increased cumulatively by 436 00:24:11,160 --> 00:24:15,399 Speaker 1: seven point four percent. M t A CFO Willens says 437 00:24:15,480 --> 00:24:18,879 Speaker 1: the potential increase would push the two seventy five cost 438 00:24:18,920 --> 00:24:22,160 Speaker 1: of a single subway or bus ride to two dollars 439 00:24:22,359 --> 00:24:26,760 Speaker 1: ninety cents next year and three oh five in It 440 00:24:26,840 --> 00:24:29,879 Speaker 1: comes as the agency is seeking additional federal, state, or 441 00:24:29,960 --> 00:24:33,719 Speaker 1: city funding to help fill budget deficits. The Biden administration 442 00:24:33,880 --> 00:24:37,280 Speaker 1: student loan forgiveness plan remains on hold. The Fifth U 443 00:24:37,359 --> 00:24:39,639 Speaker 1: s Circuit Court of Appeals denied a request from the 444 00:24:39,680 --> 00:24:43,280 Speaker 1: federal government to temporarily reverse the lower court order that 445 00:24:43,440 --> 00:24:47,720 Speaker 1: blocked rollout of the plan. Loyola Law University professor Lori 446 00:24:47,880 --> 00:24:50,960 Speaker 1: Levinson says the next stop is likely the Supreme Court. 447 00:24:51,359 --> 00:24:55,560 Speaker 1: The Fifth Circuit delta blow President Biden's plan to have 448 00:24:55,680 --> 00:24:59,800 Speaker 1: a loan forgiveness program for student loans, but the courts 449 00:24:59,800 --> 00:25:02,639 Speaker 1: have been saying that in fact, Biden did not have 450 00:25:02,840 --> 00:25:07,000 Speaker 1: the power to move forward on this. Loyola Law University 451 00:25:07,040 --> 00:25:10,560 Speaker 1: Professor Lori Levinson. President Biden announced in August that the 452 00:25:10,600 --> 00:25:14,240 Speaker 1: government would forgive up to ten thousand dollars in student 453 00:25:14,280 --> 00:25:17,800 Speaker 1: loan debt. Closing statements are set to begin today in 454 00:25:17,840 --> 00:25:20,639 Speaker 1: New York and the criminal tax evasion trial of former 455 00:25:20,680 --> 00:25:24,359 Speaker 1: President Trump's family real estate business. The Trump Organization is 456 00:25:24,400 --> 00:25:28,680 Speaker 1: accused of compensating certain executives through fringe benefits that were 457 00:25:28,680 --> 00:25:32,480 Speaker 1: never declared on income taxes. The Treasury Department turned over 458 00:25:32,480 --> 00:25:35,040 Speaker 1: six years of Donald Trump's tax returns to a House 459 00:25:35,040 --> 00:25:37,959 Speaker 1: committee after the Supreme Court cleared the way for the release. 460 00:25:38,400 --> 00:25:41,160 Speaker 1: The Ways and Means Committee has been seeking the return 461 00:25:41,280 --> 00:25:45,120 Speaker 1: saying it needs them to consider potential legislation on presidential 462 00:25:45,160 --> 00:25:48,600 Speaker 1: compliance with tax rules and mandatory I R. S Audit 463 00:25:48,640 --> 00:25:53,280 Speaker 1: policy for presidents. The Rockefeller Center Christmas Tree was officially 464 00:25:53,320 --> 00:26:01,280 Speaker 1: lit up last night in New York City. Fifty thousand 465 00:26:01,520 --> 00:26:04,920 Speaker 1: led lights are on the eight two foot tall Norway 466 00:26:05,040 --> 00:26:13,280 Speaker 1: Spruce in Midtown Manhattan. Christine McVeigh has died. Mcve sang 467 00:26:13,400 --> 00:26:15,720 Speaker 1: lead on many of Fleetwood Mac's biggest hits, and Like 468 00:26:15,920 --> 00:26:19,160 Speaker 1: Little Lies, McVeigh wrote many of the group's songs. Christine 469 00:26:19,200 --> 00:26:22,119 Speaker 1: McVeigh was seventy nine Global News twenty four hours a 470 00:26:22,200 --> 00:26:24,639 Speaker 1: day on air and on Bloomberg Quick Take, powered by 471 00:26:24,640 --> 00:26:26,760 Speaker 1: more than twenty seven hundred journalists analysts more than a 472 00:26:26,800 --> 00:26:29,320 Speaker 1: hundred twenty countries. At Michael Barr, this is Bloomberg Gaming, 473 00:26:29,720 --> 00:26:34,240 Speaker 1: all right. Thank you, Michael John now for the sports 474 00:26:34,240 --> 00:26:36,200 Speaker 1: report brought to you by Price Day out. He Here's 475 00:26:36,240 --> 00:26:38,560 Speaker 1: John's dash our alright, Amy. The next continue to have 476 00:26:38,600 --> 00:26:41,320 Speaker 1: their struggles at home. Just one win at the Garden 477 00:26:41,320 --> 00:26:43,520 Speaker 1: in the past month. We were beaten by Milwaukee one 478 00:26:43,560 --> 00:26:45,760 Speaker 1: o nine one oh three honest as the Compo led 479 00:26:45,800 --> 00:26:48,560 Speaker 1: the Bucks with thirty seven points, Kevin Duran led the 480 00:26:48,640 --> 00:26:51,400 Speaker 1: Nets with thirty nine. They made Washington at Barkley's one 481 00:26:51,440 --> 00:26:53,719 Speaker 1: thirteen one oh seven nets with three straight wins move 482 00:26:53,800 --> 00:26:56,359 Speaker 1: over five hundred. Rangers had lost their last three, but 483 00:26:56,440 --> 00:26:58,800 Speaker 1: in Ottawa goal in each period, all three assisted by 484 00:26:58,880 --> 00:27:01,200 Speaker 1: Ryan Linger in the ring. Just beat the Senators three 485 00:27:01,200 --> 00:27:04,080 Speaker 1: to one with backup Jaraslav Halaki in goal. It's his 486 00:27:04,160 --> 00:27:06,600 Speaker 1: first win as a Ranger. A long time Pittsburgh Penguins 487 00:27:06,600 --> 00:27:09,800 Speaker 1: All Star defenseman Christah Tang just suffered a stroke for 488 00:27:09,880 --> 00:27:11,920 Speaker 1: the second time. Also happened back in two thousand and 489 00:27:11,960 --> 00:27:14,960 Speaker 1: fourteen when he missed two months, and Latang is expected 490 00:27:15,000 --> 00:27:17,880 Speaker 1: to return at some point. The NFL game tonight Buffalo 491 00:27:17,920 --> 00:27:19,720 Speaker 1: at New England. That's a game the Jets will have 492 00:27:19,720 --> 00:27:21,600 Speaker 1: an interest in. The a f C East has the 493 00:27:21,680 --> 00:27:23,680 Speaker 1: Bills and Dolphins at top at eight and three of 494 00:27:23,680 --> 00:27:26,160 Speaker 1: the Jets are seven and four in the Patriots are 495 00:27:26,160 --> 00:27:28,920 Speaker 1: six and five. The Jets on Sunday visit the nine 496 00:27:28,960 --> 00:27:31,720 Speaker 1: and two Vikings. The Jets coach Rob Salon, there's a 497 00:27:31,720 --> 00:27:35,000 Speaker 1: reason why they're the record they have. They've been everybody 498 00:27:35,040 --> 00:27:37,959 Speaker 1: in under vision. UM. They'd beat Miami, they'd be Buffalo, 499 00:27:38,000 --> 00:27:41,719 Speaker 1: they'd be New England. They're they're very talented. UM. Offensively, 500 00:27:41,760 --> 00:27:45,600 Speaker 1: they've got skill players, are very well coached. UM. Defensively, 501 00:27:45,640 --> 00:27:48,880 Speaker 1: they're very veteran, very smart. They play smart sala football. 502 00:27:49,000 --> 00:27:54,240 Speaker 1: So um challenge and a big one for the Giants. Sunday, 503 00:27:54,320 --> 00:27:56,840 Speaker 1: Washington comes in having won six of the last seven. 504 00:27:56,840 --> 00:27:59,560 Speaker 1: The Giants just lost twice and the sixth Days fan 505 00:27:59,680 --> 00:28:02,080 Speaker 1: Don Addingly has a new job. The ext Yankee grade 506 00:28:02,080 --> 00:28:04,440 Speaker 1: no longer the manager in Miami. He's now the bench 507 00:28:04,520 --> 00:28:08,439 Speaker 1: coach in Toronto. ESPN reports the Yankees offered to Aaron 508 00:28:08,520 --> 00:28:11,440 Speaker 1: Judges eight years, three hundred million. It's believe Judge will 509 00:28:11,440 --> 00:28:14,040 Speaker 1: either stay in New York or signed with San Francisco. 510 00:28:14,440 --> 00:28:17,800 Speaker 1: John Stash were Bloomberg Sports in all right, Thank you, John. 511 00:28:17,840 --> 00:28:20,119 Speaker 1: It is six thirty eight on Wall Street. Time to 512 00:28:20,160 --> 00:28:22,040 Speaker 1: take a look at stocks and some of the names 513 00:28:22,080 --> 00:28:24,160 Speaker 1: that are moving in the pre market for that We're 514 00:28:24,240 --> 00:28:28,520 Speaker 1: joined by Bloomberg Radio and TV Markets corresponded Crety Goopta Creaty, 515 00:28:28,560 --> 00:28:30,520 Speaker 1: Good morning to you, Good morning Amy. We'll start off 516 00:28:30,560 --> 00:28:32,960 Speaker 1: with a Dow heavyweight if we can even utter the 517 00:28:33,000 --> 00:28:36,879 Speaker 1: Dow around here of the salesforce. C RM is your ticker, 518 00:28:36,920 --> 00:28:39,360 Speaker 1: and shares are down about six percent in the pre market. 519 00:28:39,560 --> 00:28:42,920 Speaker 1: This comes after a pretty grim forecast that fourth quarter 520 00:28:43,000 --> 00:28:46,040 Speaker 1: revenue forecast of seven point nine three billion dollars to 521 00:28:46,120 --> 00:28:49,360 Speaker 1: eight three billion the analyst estimate though with eight point 522 00:28:49,440 --> 00:28:51,760 Speaker 1: zero three so they're falling slightly short of that. Remember, 523 00:28:51,800 --> 00:28:56,320 Speaker 1: anytime someone a company, I should say, decide to kind 524 00:28:56,320 --> 00:28:58,800 Speaker 1: of decrease or forecast or cut their forecast or and 525 00:28:58,920 --> 00:29:00,920 Speaker 1: sort of guidance for the future, you're it is going 526 00:29:01,000 --> 00:29:02,560 Speaker 1: to weigh on the stocks. And you've seen them really 527 00:29:02,600 --> 00:29:06,360 Speaker 1: get punished lately. Um about extra margin as you start 528 00:29:06,400 --> 00:29:10,080 Speaker 1: to see the slowdown. Investors very sensitive to the macroeconomic picture. 529 00:29:10,120 --> 00:29:12,040 Speaker 1: But it's not just that. They also said the company's 530 00:29:12,360 --> 00:29:15,720 Speaker 1: co CEO, Brett Taylor, would also step down. Nevertheless, you 531 00:29:15,760 --> 00:29:19,040 Speaker 1: didn't actually have some decent numbers on the on on 532 00:29:19,080 --> 00:29:21,200 Speaker 1: the balance sheet there, but it was enough to, like 533 00:29:21,200 --> 00:29:23,120 Speaker 1: you said, send the shares lower and something you want 534 00:29:23,120 --> 00:29:25,080 Speaker 1: to watch with the Dow because features are about flat 535 00:29:25,200 --> 00:29:28,680 Speaker 1: right now. But as given Salesforce is one of the heavyweights, 536 00:29:28,920 --> 00:29:30,800 Speaker 1: it could have a little bit of ripple effect to 537 00:29:31,000 --> 00:29:34,080 Speaker 1: that index. We should also look at Snowflake for example. 538 00:29:34,160 --> 00:29:36,640 Speaker 1: Really stick with this the tech theme. S n o 539 00:29:36,920 --> 00:29:39,800 Speaker 1: W also down by about six percent, and this is 540 00:29:39,840 --> 00:29:41,960 Speaker 1: important because Snowflake was really kind of on a roll. 541 00:29:42,000 --> 00:29:44,440 Speaker 1: It was really rallying with a lot of the cloud companies, 542 00:29:44,440 --> 00:29:48,080 Speaker 1: a lot of cybersecurity companies. But their story this morning 543 00:29:48,080 --> 00:29:50,400 Speaker 1: is quite similar to that of Salesforce, which they're dropping 544 00:29:50,720 --> 00:29:53,880 Speaker 1: after their forecast signals a massive slowdown in tech spending. 545 00:29:53,880 --> 00:29:56,600 Speaker 1: And remember we heard this from crowd Strike yesterday. This 546 00:29:56,680 --> 00:29:59,880 Speaker 1: idea that the big boom and big kind of chain 547 00:30:00,160 --> 00:30:03,640 Speaker 1: in cloud infrastructure broadly first kind of initiated, and I 548 00:30:03,640 --> 00:30:05,800 Speaker 1: would say UM gained a lot of momentum during the 549 00:30:05,800 --> 00:30:09,120 Speaker 1: pandemic and then another leg of momentum after the war Ukraine. 550 00:30:09,160 --> 00:30:11,000 Speaker 1: All of that is slowing down now, so you're almost 551 00:30:11,000 --> 00:30:12,800 Speaker 1: seeing a little bit of a reset and spending. As 552 00:30:12,800 --> 00:30:15,760 Speaker 1: of course, a lot of companies are far more cautious 553 00:30:15,800 --> 00:30:19,000 Speaker 1: of where they put their money, so Snowflake shares snow 554 00:30:19,120 --> 00:30:22,800 Speaker 1: down about six percent, and remember fell down by ten 555 00:30:22,880 --> 00:30:25,600 Speaker 1: percent after the bell yesterday, so you're starting to see 556 00:30:25,960 --> 00:30:28,080 Speaker 1: a lot of pain for those shares. Emai, I'll wrap 557 00:30:28,120 --> 00:30:30,960 Speaker 1: it up with one more here, Victoria's Secret. V s 558 00:30:31,000 --> 00:30:33,960 Speaker 1: c O shares were down as much as one percent earlier. 559 00:30:33,960 --> 00:30:36,000 Speaker 1: They are now about flat in the session. But keep 560 00:30:36,000 --> 00:30:38,200 Speaker 1: an eye on this one because this is really important. 561 00:30:38,200 --> 00:30:40,760 Speaker 1: Their profit outlook is also trailing estimates, so you're not 562 00:30:40,800 --> 00:30:43,400 Speaker 1: actually seeing this become just a tax story. It looks 563 00:30:43,400 --> 00:30:45,400 Speaker 1: like in the consumer spending world, the idea of the 564 00:30:45,400 --> 00:30:48,120 Speaker 1: strength of the consumer. If Victoria's Secret is your gauge, 565 00:30:48,400 --> 00:30:51,400 Speaker 1: not sending a great sign alright, Bloomberg Radio and TV 566 00:30:51,480 --> 00:30:54,520 Speaker 1: Markets correspondent Creedy Gupta, thank you for that inside, Thanks 567 00:30:54,560 --> 00:30:57,320 Speaker 1: for joining us and looking at stocks as a whole. 568 00:30:57,360 --> 00:31:01,000 Speaker 1: Ahead of the open, futures are lower. SMP futures down 569 00:31:01,000 --> 00:31:04,680 Speaker 1: three points, DAL futures down fifty seven, Nasdaq futures down 570 00:31:04,720 --> 00:31:08,120 Speaker 1: twenty six points. Ten year treasury up one thirty second, 571 00:31:08,200 --> 00:31:11,280 Speaker 1: the yield at three point six, the two year yield 572 00:31:11,440 --> 00:31:14,320 Speaker 1: at four point three. We continue to watch the markets 573 00:31:14,360 --> 00:31:17,000 Speaker 1: for you here on Bloomberg Daybreak. Stay with us this 574 00:31:17,040 --> 00:31:23,920 Speaker 1: is Bloomberg. The Bloomberg Sports Report was brought to you 575 00:31:24,000 --> 00:31:26,160 Speaker 1: by Audie. Don't let someone else drive off in the 576 00:31:26,200 --> 00:31:29,120 Speaker 1: Outie model you've always wanted. Visit your local try state 577 00:31:29,160 --> 00:31:31,360 Speaker 1: autie dealer to get behind the wheel of yours today, 578 00:31:31,440 --> 00:31:37,720 Speaker 1: or visit Outie Offers dot com for more information, markets, 579 00:31:37,800 --> 00:31:40,880 Speaker 1: headlines and breaking news twenty four hours a day at 580 00:31:40,920 --> 00:31:44,560 Speaker 1: Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quick 581 00:31:44,640 --> 00:31:55,040 Speaker 1: takes a Bloomberg Business Flash. I'm Nathan Hagar. After yesterday's searche, 582 00:31:55,160 --> 00:31:57,240 Speaker 1: futures are taking a bit of a breather this morning, 583 00:31:57,320 --> 00:31:59,040 Speaker 1: Let's head right over to the First Bird breaking news 584 00:31:59,080 --> 00:32:01,560 Speaker 1: desk for today's morning call. Here's Bill Maloney. Good morning, Bill, 585 00:32:02,400 --> 00:32:05,080 Speaker 1: Good morning Nathan. That's right modest laws in the futures 586 00:32:05,080 --> 00:32:07,960 Speaker 1: after yesterday's jump. With down futures down sixty three points, 587 00:32:07,920 --> 00:32:10,160 Speaker 1: subs dropped three and a half and as the futures 588 00:32:10,160 --> 00:32:13,800 Speaker 1: fall by seven, the US ten year at three point 589 00:32:13,920 --> 00:32:16,360 Speaker 1: six percent, Gold is up twelve, Oil is in the green, 590 00:32:16,440 --> 00:32:20,280 Speaker 1: and bitcoin is trading little change. Japan rose point nine 591 00:32:20,280 --> 00:32:22,720 Speaker 1: percent over tonight, while up markets are also trading in 592 00:32:22,760 --> 00:32:24,800 Speaker 1: the green this morning and back in the US on 593 00:32:24,840 --> 00:32:28,960 Speaker 1: the economic Frinday dirty PC and initial jobs claims at 594 00:32:29,240 --> 00:32:31,680 Speaker 1: Manufacturing p M I and at ten o'clock I s 595 00:32:31,800 --> 00:32:35,280 Speaker 1: M Manufacturing After the bells Night's salesforce reported shares it 596 00:32:35,320 --> 00:32:38,240 Speaker 1: down six percent in the pre market, and Snowflake Q 597 00:32:38,400 --> 00:32:42,360 Speaker 1: four product revenue forecast missed estimates. In deal news, HP 598 00:32:42,720 --> 00:32:45,600 Speaker 1: is said to have expressed interest in cloud from New Tannics, 599 00:32:46,080 --> 00:32:48,320 Speaker 1: and in other news, JP Morgan said US stocks to 600 00:32:48,520 --> 00:32:51,920 Speaker 1: sink in the first half of three and Taiwan semi 601 00:32:51,920 --> 00:32:54,760 Speaker 1: plans to make more advanced chips in the US at 602 00:32:54,800 --> 00:32:57,880 Speaker 1: the urging of Apple wrapping things up. Otis Worldwide was 603 00:32:57,880 --> 00:33:01,040 Speaker 1: cut to equate at Barkley's Capital one cut underweight over 604 00:33:01,120 --> 00:33:04,440 Speaker 1: at Morgan Stanley Live from the first breaking News descon 605 00:33:04,480 --> 00:33:07,080 Speaker 1: Boom Maloney, Nathan, thanks Phil to get live breaking news 606 00:33:07,080 --> 00:33:10,040 Speaker 1: over your Bloomberg type squawk on your terminal s Q. 607 00:33:10,240 --> 00:33:12,880 Speaker 1: You a go, that's the Bloomberg business Flash. Now here's 608 00:33:12,880 --> 00:33:15,720 Speaker 1: Michael Barr with more on what's going on around the world. Michael, 609 00:33:15,960 --> 00:33:18,120 Speaker 1: thank you very much, Nathan. The House voted to block 610 00:33:18,200 --> 00:33:21,280 Speaker 1: a strike by the nation's railway workers, and a separate 611 00:33:21,360 --> 00:33:25,120 Speaker 1: vote also adding seven days have paid sick leave. To 612 00:33:25,160 --> 00:33:29,160 Speaker 1: the agreement, both bills now head to the Senate. President 613 00:33:29,240 --> 00:33:32,200 Speaker 1: Joe Biden has set to welcome French President Emmanuel mccrawl 614 00:33:32,320 --> 00:33:35,160 Speaker 1: to the White House today. The visit will conclude with 615 00:33:35,200 --> 00:33:38,320 Speaker 1: the first state dinner of the Biden administration. In the NBA, 616 00:33:38,400 --> 00:33:40,920 Speaker 1: at the next loss, the Nets beat the Wizards the 617 00:33:41,000 --> 00:33:44,160 Speaker 1: Celtics one. In the NHL, the Rangers won at the 618 00:33:44,200 --> 00:33:48,320 Speaker 1: World Cup four games today, including Germany against Costa Rica. 619 00:33:48,760 --> 00:33:51,360 Speaker 1: Global News twenty four hours a day on air and 620 00:33:51,520 --> 00:33:54,840 Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred 621 00:33:54,880 --> 00:33:58,080 Speaker 1: journalist analyists more than a hundred twenty countries. Michael Barr 622 00:33:58,080 --> 00:34:01,440 Speaker 1: and this is Bloomberg, Nathan Michael. Thanks at six forty 623 00:34:01,480 --> 00:34:03,560 Speaker 1: nine on Wall Street. Let's turn the news and science 624 00:34:03,560 --> 00:34:06,120 Speaker 1: and technology now. The Bloomberg n j I T STEM 625 00:34:06,160 --> 00:34:09,000 Speaker 1: Report is brought to you by New Jersey Institute of Technology, 626 00:34:09,239 --> 00:34:11,920 Speaker 1: ranked the top hundred national university by US News and 627 00:34:11,920 --> 00:34:14,560 Speaker 1: World Report and the number one public university in New 628 00:34:14,640 --> 00:34:17,080 Speaker 1: Jersey by Forbes. What will You Make It? Nj I T. 629 00:34:17,760 --> 00:34:19,759 Speaker 1: Learn more at nj I T dot E d um 630 00:34:19,840 --> 00:34:23,520 Speaker 1: now what it is making news in science, Technology, Engineering 631 00:34:23,600 --> 00:34:27,360 Speaker 1: and Math. Three years since the world's first documented coronavirus 632 00:34:27,440 --> 00:34:30,360 Speaker 1: patient in China, the country's finally pivoting from efforts to 633 00:34:30,440 --> 00:34:33,600 Speaker 1: quash the pandemic. China's covid zar says the fight has 634 00:34:33,719 --> 00:34:36,880 Speaker 1: entered a new phase and the government is making some concessions, 635 00:34:36,920 --> 00:34:39,600 Speaker 1: like allowing some low risk patients to isolate at home 636 00:34:39,680 --> 00:34:45,080 Speaker 1: instead of in controversial quarantine camps. The European Union's Executive 637 00:34:45,160 --> 00:34:48,800 Speaker 1: arm will conduct a stress test at Twitter's headquarters earlier 638 00:34:48,840 --> 00:34:51,919 Speaker 1: next early next year, as the block's digital chief, Warren 639 00:34:51,960 --> 00:34:55,560 Speaker 1: Delon Musk he was had quote huge work ahead to 640 00:34:55,640 --> 00:34:59,399 Speaker 1: comply with content moderation laws. The European warning also came 641 00:34:59,440 --> 00:35:02,720 Speaker 1: as Treasury Secretary Janet Yelling said Musk's purchase of Twitter 642 00:35:02,760 --> 00:35:05,920 Speaker 1: would warrant a government review if themed to raise national 643 00:35:05,960 --> 00:35:09,800 Speaker 1: security concerns, and another one of Musk's companies is making news. 644 00:35:09,960 --> 00:35:13,080 Speaker 1: Neurallink says it aims to start putting its coin sized 645 00:35:13,120 --> 00:35:18,960 Speaker 1: computing brain implant into human patients within six months. The 646 00:35:18,960 --> 00:35:22,880 Speaker 1: product consists of a tiny device and electrode laced wires, 647 00:35:22,920 --> 00:35:25,040 Speaker 1: along with a robot that carves out a piece of 648 00:35:25,080 --> 00:35:29,319 Speaker 1: a person's skull and implants it into the brain. That's 649 00:35:29,320 --> 00:35:32,319 Speaker 1: the Bloomberg J I T Stem Report. Amy. All right, 650 00:35:32,320 --> 00:35:34,840 Speaker 1: thank you, Nathan, and we're live from the Bloomberg Interactive 651 00:35:34,840 --> 00:35:37,800 Speaker 1: Broker Studios, where it is six fifty one on Wall 652 00:35:37,840 --> 00:35:40,360 Speaker 1: Street Time now to check what's going on in d C. 653 00:35:40,719 --> 00:35:43,920 Speaker 1: Some of the top stories in our nation's capital include 654 00:35:44,000 --> 00:35:46,719 Speaker 1: the House voting to avert a potential rail strike by 655 00:35:46,719 --> 00:35:49,800 Speaker 1: passing a bill to make union workers accept a contract 656 00:35:49,800 --> 00:35:52,560 Speaker 1: with rail companies. A House panel can now get a 657 00:35:52,560 --> 00:35:55,960 Speaker 1: look at Donald Trump's tax returns, Republicans are going to 658 00:35:56,000 --> 00:35:59,799 Speaker 1: continue spending earmarks next year, and the first White House 659 00:35:59,840 --> 00:36:02,360 Speaker 1: to dinner in three years is set for tonight. We 660 00:36:02,440 --> 00:36:06,919 Speaker 1: welcome Bloomberg Government reporter Jack Fitzpatrick. A lot to unpack here, Jack. 661 00:36:06,960 --> 00:36:09,600 Speaker 1: The House passing legislation to a vert of railroad strike. 662 00:36:10,200 --> 00:36:12,279 Speaker 1: How now it's going to the Senate now. But what 663 00:36:12,400 --> 00:36:15,719 Speaker 1: happens next, Well, that's the big question. And as a 664 00:36:15,840 --> 00:36:18,680 Speaker 1: question of timing and what exactly they can pass. The 665 00:36:18,760 --> 00:36:23,160 Speaker 1: House actually took two votes. They passed quite easily, with 666 00:36:23,200 --> 00:36:29,000 Speaker 1: two votes in favor a standard measure to require the 667 00:36:29,480 --> 00:36:32,440 Speaker 1: unions essentially to accept the offer that has been made. 668 00:36:32,760 --> 00:36:36,080 Speaker 1: There was then a separate vote much closer that only 669 00:36:36,120 --> 00:36:40,000 Speaker 1: got three Republicans to vote in favor that would add 670 00:36:40,239 --> 00:36:43,760 Speaker 1: seven days of paid sick leave to that contract. Now 671 00:36:43,800 --> 00:36:46,960 Speaker 1: in the Senate, we're hearing a lot from Bernie Sanders 672 00:36:47,000 --> 00:36:50,840 Speaker 1: saying he was going to demand an amendment, demanded a 673 00:36:50,880 --> 00:36:53,759 Speaker 1: measure to add those seven days of paid sick leave. 674 00:36:54,080 --> 00:36:58,080 Speaker 1: Otherwise he wasn't going to allow a quick vote, And 675 00:36:58,120 --> 00:37:00,600 Speaker 1: that's very important in the Senate, where things drag on. 676 00:37:00,719 --> 00:37:03,280 Speaker 1: It can take a week or so to pass something 677 00:37:03,320 --> 00:37:07,080 Speaker 1: if you don't get unanimous consent to speed things up. Uh, 678 00:37:07,120 --> 00:37:10,360 Speaker 1: he is trying to get as much support as possible 679 00:37:10,400 --> 00:37:13,759 Speaker 1: for that more generous version with seven days of paid 680 00:37:13,800 --> 00:37:16,719 Speaker 1: sick leave. John Thune, the Republican whip, is that he 681 00:37:16,760 --> 00:37:19,160 Speaker 1: doesn't think there would be sixty votes for that. So 682 00:37:19,239 --> 00:37:22,520 Speaker 1: there's a question of how quickly they can take this up, 683 00:37:22,560 --> 00:37:26,440 Speaker 1: how quickly they can get a unanimous time agreement to 684 00:37:26,600 --> 00:37:29,640 Speaker 1: try to quickly get something to the President's desk, and 685 00:37:29,800 --> 00:37:34,480 Speaker 1: if it's possible for Sanders to rally enough people around 686 00:37:34,560 --> 00:37:37,799 Speaker 1: the sick leave or if he has to settle for 687 00:37:37,960 --> 00:37:41,400 Speaker 1: the the standard agreement that nine out of the thirteen 688 00:37:41,560 --> 00:37:45,200 Speaker 1: unions have accepted but four have not if they don't 689 00:37:45,280 --> 00:37:49,120 Speaker 1: pass that sick leave part of the legislation, will there 690 00:37:49,120 --> 00:37:53,759 Speaker 1: be a strike? Uh? It's well, there wouldn't be a 691 00:37:53,760 --> 00:37:57,040 Speaker 1: strike if Congress demands that this be put into place. 692 00:37:57,160 --> 00:38:01,840 Speaker 1: This is how they avoid a strike is by saying, okay, 693 00:38:01,880 --> 00:38:05,440 Speaker 1: the the unions have not all unanimously voted yes, but 694 00:38:05,560 --> 00:38:08,960 Speaker 1: Congress acting is the thing that avoids a strike. At 695 00:38:08,960 --> 00:38:12,120 Speaker 1: this point, the negotiations aren't taking care of it. And 696 00:38:12,160 --> 00:38:16,759 Speaker 1: that's why President Biden, in a very significant move, has 697 00:38:16,800 --> 00:38:20,120 Speaker 1: said Congress needs to step in and legally require some 698 00:38:20,200 --> 00:38:22,560 Speaker 1: sort of deal to be put into place. And the 699 00:38:22,640 --> 00:38:25,400 Speaker 1: question now is if they can act quickly enough before 700 00:38:25,760 --> 00:38:29,520 Speaker 1: it disrupts the freight lines, and if they choose to 701 00:38:29,600 --> 00:38:32,719 Speaker 1: do the the offer that already stands or add that 702 00:38:32,840 --> 00:38:36,240 Speaker 1: sick leave. Okay, let's shift gears now, Jack, the Housewives 703 00:38:36,280 --> 00:38:39,520 Speaker 1: and Means Committee has Donald Trump's tax returns for the 704 00:38:39,520 --> 00:38:42,799 Speaker 1: past six years. Now, what happens, Well, it's not a 705 00:38:42,840 --> 00:38:45,520 Speaker 1: moment too soon, because it's just about the end of 706 00:38:45,520 --> 00:38:47,840 Speaker 1: the Congress. This the Congress ends at the end of 707 00:38:47,880 --> 00:38:52,560 Speaker 1: the year or the next one begins at very early January. Uh. 708 00:38:52,600 --> 00:38:55,600 Speaker 1: They essentially want to find out if he has been 709 00:38:55,600 --> 00:38:58,399 Speaker 1: following the lawn to what extent he's been following the law. 710 00:38:58,440 --> 00:39:00,360 Speaker 1: You probably remember the New York Times or Boarding a 711 00:39:00,440 --> 00:39:03,680 Speaker 1: couple of years ago of the very low amounts that 712 00:39:03,760 --> 00:39:06,960 Speaker 1: he paid down to zero in some years of personal 713 00:39:07,000 --> 00:39:10,360 Speaker 1: income tax. Uh. They made the case in court that 714 00:39:10,400 --> 00:39:14,879 Speaker 1: they needed this for legislating on the the issue of 715 00:39:15,120 --> 00:39:18,840 Speaker 1: holding the president accountable and making sure the president follows 716 00:39:18,960 --> 00:39:21,800 Speaker 1: I R. S Law. Uh. So they're they're going to 717 00:39:21,880 --> 00:39:24,680 Speaker 1: have to have a conversation about what they do. It's 718 00:39:25,200 --> 00:39:28,080 Speaker 1: very late to try to pass a bill, but this 719 00:39:28,160 --> 00:39:31,479 Speaker 1: is a really a matter of the public interest. Uh. 720 00:39:31,760 --> 00:39:34,719 Speaker 1: And and so they're going to meet today. Lawmakers are 721 00:39:34,719 --> 00:39:37,960 Speaker 1: going to meet today to discuss what they've got. And Uh. 722 00:39:38,120 --> 00:39:40,919 Speaker 1: It's again, it's a bit of a race against time 723 00:39:40,960 --> 00:39:45,279 Speaker 1: to ask what a democratically controlled House is going to 724 00:39:45,400 --> 00:39:47,840 Speaker 1: do when they're about to hand over the majority to 725 00:39:47,880 --> 00:39:51,640 Speaker 1: the Republicans in early January. And you have a story 726 00:39:51,719 --> 00:39:54,319 Speaker 1: Jack on the Bloomberg Terminal about how House Republicans plan 727 00:39:54,440 --> 00:39:57,319 Speaker 1: to keep spending earmarks in place for the next year. 728 00:39:57,400 --> 00:40:00,719 Speaker 1: That's actually a significant move. Yeah. You know, there was 729 00:40:00,800 --> 00:40:04,040 Speaker 1: so much Republican opposition to earmarks, which had gotten a 730 00:40:04,080 --> 00:40:07,239 Speaker 1: really bad reputation. Uh. You know, a significant portion of 731 00:40:07,280 --> 00:40:13,040 Speaker 1: the Tea Party wave of Conservatives was against ear marks, 732 00:40:13,080 --> 00:40:16,880 Speaker 1: but the Democrats brought it back and got Republicans to 733 00:40:16,880 --> 00:40:19,959 Speaker 1: to go along with it and and participate at least 734 00:40:19,960 --> 00:40:22,640 Speaker 1: many of them over the last couple of years. Uh. 735 00:40:22,760 --> 00:40:25,200 Speaker 1: And there have not been scandals, it has not been 736 00:40:25,360 --> 00:40:28,200 Speaker 1: very much money in the context of federal spending. They 737 00:40:28,480 --> 00:40:33,200 Speaker 1: added nine point seven billion dollars in local projects specifically 738 00:40:33,840 --> 00:40:36,880 Speaker 1: requested by lawmakers in the in the last omnibus that 739 00:40:36,960 --> 00:40:39,680 Speaker 1: was enacted in March. And so the Republicans in the 740 00:40:39,719 --> 00:40:42,720 Speaker 1: House actually voted a hundred fifty eight to fifty two, 741 00:40:43,120 --> 00:40:45,719 Speaker 1: according to my colleagues Eric Kasson and Emily Wilkins in 742 00:40:45,800 --> 00:40:49,719 Speaker 1: a closed door vote. Uh so that's a very strong majority. 743 00:40:49,800 --> 00:40:54,879 Speaker 1: As you saw leadership and leadership aligned Republicans pointing out 744 00:40:54,920 --> 00:40:58,480 Speaker 1: that this is not quite the scandal ridden kind of 745 00:40:58,560 --> 00:41:01,320 Speaker 1: bridge to nowhere process us that had been panned in 746 00:41:01,719 --> 00:41:06,200 Speaker 1: the past years. And finally, jack President Biden welcoming French 747 00:41:06,200 --> 00:41:08,960 Speaker 1: President Emmanuel mccron for the first White House state dinner 748 00:41:09,000 --> 00:41:11,080 Speaker 1: and more than three years, what are you going to 749 00:41:11,160 --> 00:41:15,799 Speaker 1: be watching for? Well, mccron comes with some complaints. The 750 00:41:15,840 --> 00:41:20,840 Speaker 1: French don't really like some of the the electric vehicle 751 00:41:20,920 --> 00:41:27,240 Speaker 1: manufacturing measures meant to spur American production of electric vehicle 752 00:41:27,400 --> 00:41:31,840 Speaker 1: parts that were put in place in the major reconciliation 753 00:41:31,920 --> 00:41:35,960 Speaker 1: bills enacted earlier this year that Democrats got through Congress. Uh, 754 00:41:36,000 --> 00:41:39,719 Speaker 1: they're still not very happy also about the us UK 755 00:41:40,080 --> 00:41:45,800 Speaker 1: deal with Australia on nuclear submarines that the that France 756 00:41:45,840 --> 00:41:49,640 Speaker 1: had wanted to uh be part of or really wanted 757 00:41:49,680 --> 00:41:53,960 Speaker 1: to supply the Australians with nuclear submarines. Uh. So, you know, 758 00:41:54,000 --> 00:41:57,880 Speaker 1: it's overall not a terribly negative relationship with President Biden, 759 00:41:57,920 --> 00:42:00,560 Speaker 1: but there are a couple key complaints that mccron brings 760 00:42:01,440 --> 00:42:04,200 Speaker 1: at a time when otherwise Biden is kind of riding 761 00:42:04,280 --> 00:42:09,440 Speaker 1: high given Democrats over performance compared to expectations in the 762 00:42:09,680 --> 00:42:14,400 Speaker 1: November midterms. Alright, Bloomberg Government reporter Jack Fitzpatrick, always a 763 00:42:14,400 --> 00:42:16,160 Speaker 1: pleasure to talk to you. Thank you very much for 764 00:42:16,200 --> 00:42:18,920 Speaker 1: taking the time this morning. You can read more about 765 00:42:18,960 --> 00:42:22,160 Speaker 1: these stories on Bloomberg dot com or on the Bloomberg terminal. 766 00:42:22,440 --> 00:42:24,720 Speaker 1: And a reminder, you can follow all of the latest 767 00:42:24,760 --> 00:42:28,640 Speaker 1: on Bloomberg Radio in Washington, Bloomberg nine one and one 768 00:42:28,680 --> 00:42:32,480 Speaker 1: oh five point seven. Fm h D two futures are lower. 769 00:42:32,680 --> 00:42:35,880 Speaker 1: S and P futures down three points, DAL futures down 770 00:42:35,920 --> 00:42:40,560 Speaker 1: fifty seven, NASTAC futures down twenty two. Bloomberg Surveillance with 771 00:42:40,719 --> 00:42:44,280 Speaker 1: Tom Keene, Lisa Bramowitz, and Jonathan Farrow coming up next, 772 00:42:44,360 --> 00:42:47,880 Speaker 1: along with Nathan Hagar. I'm Amy Morris, and this is Bloomberg.