Speaker 1: Live from the Bloomberg Interactive Broker Studios. This is Bloomberg
Speaker 1: day Break for Thursday, December one, two. Coming up this hour,
Speaker 1: j Palell moves markets as he signals the pace of
Speaker 1: rate hikes will slow more signs China is softening its
Speaker 1: stands on COVID restrictions. Sam bankman Fried speaks out about
Speaker 1: the collapse of ft X, and a standoff between Elon
Speaker 1: Musk and Tim Cook appears to ease New York subway
Speaker 1: writers may see fears go up next year. Plus, a
Speaker 1: House committee now has President Trump's tax returns. On Michael
Speaker 1: blarm More Ahead, I'm John Standstoward. Sports another home loss
Speaker 1: for the Knicks, beaten by the Bucks, the Nets beat
Speaker 1: the Wizards, the Rangers one in Ottawa. That's all trended
Speaker 1: ahead on Bloomberg day Break on Bloomberg. He Living Free
Speaker 1: on New York Bloomberg one, Washington, d C, Bloomberg one
Speaker 1: oh six one, Boston, Bloomberg nine sixties and Francisco Sirius
Speaker 1: x M one nineteen and around the world Bloombird Radio
Speaker 1: dot Com and via the Bloombird Business app the Thursday Morning.
Speaker 1: I'm Amy Morris, I'm Nathan Hagar futures are moving lower
Speaker 1: this morning. We're coming up to six o one on
Speaker 1: Wall Street, and we check the markets every fifteen minutes
Speaker 1: starting the trading day. On bloomberg SMP futures are down
Speaker 1: down five points, Stown features down sixty nine, NASTAC futures
Speaker 1: are lower by thirty seven points ten. Your treasury is
Speaker 1: a little changed now. The yield three point six zero
Speaker 1: percent yield on the two year four point three two percent.
Speaker 1: Nimex screws up six tenths per center forty five cents
Speaker 1: at eighty one dollars A barrel comes gold is up
Speaker 1: one point seven percent, up thirty dollars fifty cents. It's
Speaker 1: seventy announced. The euro one point zero four two two
Speaker 1: against the dollar, the yen one thirty six point four
Speaker 1: four Amy Nathan, we begin with market moving remarks from JPL,
Speaker 1: the FED chair signaling the Central Bank will back off
Speaker 1: its aggressive base of interest rate hikes as soon as
Speaker 1: this month. The time for moderating the pace of rate
Speaker 1: increases may come as soon as the December meeting. Given
Speaker 1: our our progress in tightening policy, the timing of that
Speaker 1: moderation is far less significant than the questions of how
Speaker 1: much further we will need to raise grades to control inflation.
Speaker 1: Powell's remarks solidified bets the Fed will downshift to a
Speaker 1: fifty basis point rate hike on December four, after delivering
Speaker 1: four straight seventy five basis point moves. Like what, the
Speaker 1: markets surged on Powell's comments. Say. The SMP five hundred
Speaker 1: rallied more than three percent to close it a two
Speaker 1: month high. The NASTAC one hundred jumped four point four percent,
Speaker 1: and with the Dow's seven hundred thirty seven point advanced,
Speaker 1: that index is now up from its September low. That
Speaker 1: meets the definition of a bull market. Sobadra ra Joppa's
Speaker 1: head of US rate strategy associate a general, So, I
Speaker 1: think if you have a picture where inflation is starting
Speaker 1: to moderate, then they might be willing to kind of
Speaker 1: be patient, keep rates steady for the domainder of next
Speaker 1: year UH and then start to orchestrate a soft landing.
Speaker 1: Sbadra Japa expects rates to stay elevated not only next year,
Speaker 1: but into and we saw the Wall Street rally spill
Speaker 1: into markets overseas. Stocks in Europe are up about a
Speaker 1: half percent. Equities in Asia advanced overnight extending gains after
Speaker 1: their best monthly rally in twenty four years. Let's get
Speaker 1: the recap from Bloomberg's Juliet Sally in Singapore. Good morning, Juliette,
Speaker 1: Good morning, Nathan and Amy. After capping a fifteen percent
Speaker 1: gain in November, the m s ci Asia Pacific Index
Speaker 1: jumped as much as two and a half percent Thursday
Speaker 1: to in August high and is inching closer towards a
Speaker 1: bull market. Gauges in China, Hong Kong and Taiwan led
Speaker 1: gains after a top Chinese officials said efforts to combat
Speaker 1: the virus entering a new phase, with the omicron variant
Speaker 1: weakening and vaccination rates rising. Meanwhile, Beijing some restrictions, lifting
Speaker 1: the on and the yen traded at a three month
Speaker 1: high in Singapore. Juliette Sally Bloomberg Day Break, Juliet Thanks.
Speaker 1: COVID policies remained front and center in China, and we're
Speaker 1: seeing more signs Beijing may be willing to soften its
Speaker 1: stance on virus restrictions. Bloomberg Executive editor Paul Dobson has
Speaker 1: more from our Singapore bureau today. We learned that in Beijing,
Speaker 1: some people may be allowed to quarantine at home instead
Speaker 1: of going to quarantine camps, which is obviously good news
Speaker 1: because people would much rather be in the comfort of
Speaker 1: their own homes given the choice a lot of the time.
Speaker 1: Um and and it might give them a little bit
Speaker 1: more confidence to go out at about when when COVID
Speaker 1: isn't around incremensity, that's good news. But directionally that's very
Speaker 1: good news because you know, the market is waiting for
Speaker 1: China to take these decisive steps, you know, the vaccinations
Speaker 1: that are needed for the elderly, the increase in hospital
Speaker 1: beds to be able to start that process of opening up,
Speaker 1: which the rest of the world has already, you know,
Speaker 1: way ahead of Bloomberg's Paul Dobson says, it's been three
Speaker 1: years since the world's first documented coronavirus patient emerged in China,
Speaker 1: and Nathan back here in the US, we are hearing
Speaker 1: public comments now from Sam Bankman freed for the first time,
Speaker 1: the disgraced founder and CEO of the bankrupt FDx crypto
Speaker 1: Empire is denying fraud while admitting to grievous errors in management.
Speaker 1: Whatever happened, why ever it happened, I had a duty
Speaker 1: added duty to all of our stakeholders, to our customers,
Speaker 1: our frederors, a head of duty for employees, for investors,
Speaker 1: and to the regulators in the world to do right
Speaker 1: by them, to make sure the right things happened to
Speaker 1: the company. And uh, they're the I'd do a good
Speaker 1: job of that. I was shocked by what happened this month,
Speaker 1: Sam Bankman. Freed made the comments by video link at
Speaker 1: the New York Times Deal Book Summit. There are still
Speaker 1: unanswered questions about how FTX ended up with an eight
Speaker 1: billion dollar hole in its balance sheet and whether it
Speaker 1: mishandled customer funds well. Meantime, amy has standoff between two
Speaker 1: of the world's most powerful tech leaders appears to be easy.
Speaker 1: Let's get the details live from Bloomberg. Steve Rappaport, Good
Speaker 1: Morning State, Good morning making a namy Elon. Musk is
Speaker 1: burying the hatchet with Apple CEO Tim Cook, saying the
Speaker 1: tip between the tech giants was a misunderstanding that has
Speaker 1: been resolved. The Twitter boss claimed without explanation that Apple
Speaker 1: threatened to block the platform from its app store, but
Speaker 1: yesterday Musk's confirmed he spoke with Cook and says Cook
Speaker 1: assured him Apple never even considered doing so, a number
Speaker 1: of businesses paused advertising on Twitter because of concerns about
Speaker 1: Musk's approach to moderating content. Live in New York, I'm
Speaker 1: Steve Rappaport, Bloomberg Daybreak. All right, thank you, Steve. Now,
Speaker 1: let's get the latest on efforts to avert a crippling
Speaker 1: freight rail strike. The House has passed legislation to block
Speaker 1: a strike, sending it to the Senate, which could take
Speaker 1: action as soon as this week. The House also passed
Speaker 1: a related bill that would add seven days of paid
Speaker 1: sickly to the rail contract. Bloomberg's Joe Matthew spoke about
Speaker 1: that with Art Wheaton, director of Labor Studies at Cornell
Speaker 1: University's School of Industrial and Labor Relations. I agree that
Speaker 1: the workers deserve the seven days off, but they need
Speaker 1: to get enough votes in the Senate for it to pass.
Speaker 1: Otherwise we have a strike. I would guess they're not
Speaker 1: going to add the seven days in the Senate. Art
Speaker 1: Wheaton is director of Labor Studies at Cornell University. He
Speaker 1: was a guest on Sound on Herd weekdays at five
Speaker 1: pm Wall Street Time here on Bloomberg Radio. Finally, Amy
Speaker 1: as inflation pressures remain high. A new survey says New
Speaker 1: York City and Singapore are the most expensive of cities
Speaker 1: to live in. The report comes from the Economist Intelligence
Speaker 1: Unit Tel Aviv, Hong Kong, and Los Angeles round out
Speaker 1: the top five. The survey says the cost of living
Speaker 1: in the world's largest cities rose more than eight percent
Speaker 1: over the past year. Straight ahead, we'll bring your latest
Speaker 1: local headlines and a check of sports. This is Bloomberg.
Speaker 1: Thank you, Nathan, six oh seven on Wall Street. Now,
Speaker 1: let's bringing Michael Barr to find out what else is
Speaker 1: going on in New York and around the world. Good
Speaker 1: morning Michael, Good morning Amy. New York's mt A may
Speaker 1: boost fares on subways, buses, and commuter rail lines by
Speaker 1: five point five percent next year. It is the first
Speaker 1: time the transit provider has implemented such a hike since
Speaker 1: the MTA faces a potential three billion dollar budget deficit
Speaker 1: as weekday ridership has plantawed to about six a pre
Speaker 1: pandemic levels. The m t A tends to increase fares
Speaker 1: by four percent every two years, but Governor Kathy Hoco
Speaker 1: postpone tho science during the pandemic. The house ways and
Speaker 1: means committee will get to look through Donald Trump's tax returns,
Speaker 1: Bloomberg said Baxter as the story the i R s
Speaker 1: as it is complied with the Supreme Court and making
Speaker 1: the returns available, did not confirm whether members of the
Speaker 1: panel have accessed them. The committee reportedly will meet today
Speaker 1: to decide what to do with the returns. This has
Speaker 1: been a long journey, as a committee has been seeking
Speaker 1: the documents since twenty Trump had repeatedly said during the
Speaker 1: campaign that he would make the returns public, but then
Speaker 1: fought all the way to the Supreme Court. The committee
Speaker 1: has argued it needs to see the returns to draft
Speaker 1: legislation on presidential compliance with tax law. In San Francisco,
Speaker 1: I'm at Baxter Bloomberg Daybreak. The US Appeals Court rejected
Speaker 1: the Biden administration's request to reinstate the student debt relief plan.
Speaker 1: President Biden announced in August that the government would forgive
Speaker 1: up to ten thousand dollars in student loan debt for
Speaker 1: borrowers making less than one twenty five thousand dollars a year.
Speaker 1: About twenty six million Americans have applied for student loan forgiveness.
Speaker 1: Loyola Law University Professor Lorie Levinson. These loans are supposed
Speaker 1: to be repaid starting in January, and unless a court
Speaker 1: uphold surfieding plan, then these people who thought they would
Speaker 1: have their loans forgiven will have to start paying. Professor
Speaker 1: Lorie Levinson says the next stop is likely the Supreme Court.
Speaker 1: The New York Grid Operator warned that electricity supplies will
Speaker 1: be tied as early as twenty three as the man
Speaker 1: grows and old generators shut down, increasing the risk of blackouts.
Speaker 1: The New York Independent System Operators says the availability of
Speaker 1: power supplies will then over the next decade as more
Speaker 1: power plants fueled by natural gas shut down and the
Speaker 1: man grows for electric vehicles and home heating. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Tank, powered by more than twenty seven under journalist
Speaker 1: and analysts more than a hundred twenty countries. Michael Barr
Speaker 1: and this is Bloombergaining. All right, thank you make for
Speaker 1: the sports report, brought to you by Try State Outy.
Speaker 1: Here's john s dash Our all right, thanks Amy. The
Speaker 1: Knicks one of their first three home games this season.
Speaker 1: Since then at the Garden, they've gone one and six
Speaker 1: beaten by the Bucks one oh nine, one oh three
Speaker 1: too much. Jana's sons in the compo thirty seven points.
Speaker 1: R J. Barrett of the Knicks with twenty six. Julius
Speaker 1: Randalls had only eight of twenty four, Jalen Brunson eight
Speaker 1: of twenty two. Together, they were just one of twelve
Speaker 1: on three pointers the nets in Brooklyn Pete, Washington one
Speaker 1: one oh seven. That's three straight wins to move over
Speaker 1: five hundred. Kevin Durant continues his terrific season, averaging thirty
Speaker 1: per game, shooting fifty five. Durant scored thirty nine Kyrie
Speaker 1: Irving at its twenty seven. Rangers in Ottawa had the lead,
Speaker 1: looking for more of the Rangers control of the draw,
Speaker 1: send it back up with Savannah Jat up the middle,
Speaker 1: leaves the back into the far wing for VC spins
Speaker 1: to his forehead and backhands upon and at the Savannah Jat.
Speaker 1: Savannah Jat slings it to the newer point and lingery
Speaker 1: with a and they store Prider was in front. I
Speaker 1: think he deflected it and the Rangers take up three
Speaker 1: ESPN New York CALLI it was Grider is eleven goal
Speaker 1: he at fifty two. Last year, the Rangers beat the
Speaker 1: Senators three to one. College Jus Rutgers lost in Miami
Speaker 1: s one Big ten a c C Challenge. The two
Speaker 1: conferences split six games Tuesday and split six more last night,
Speaker 1: Indiana beating North Carolina, who began the season right number
Speaker 1: one Tario's and now lost three in a row. Australia,
Speaker 1: Argentina and Poland all earned their way into the World
Speaker 1: Cup knockout round. France had already flints and four more
Speaker 1: spots up for grabs today. In guitar, the Giants will
Speaker 1: have a visitor at the facility today and old fred
Speaker 1: O'Dell Beckham, the ex Giant, has not played this season,
Speaker 1: now said to have recovered from the torn a c
Speaker 1: l suffered in the Super Bowl while he was with
Speaker 1: the Rams. The Cowboys also very much interested in signing Jack.
Speaker 1: That's Stashward Bloomberg Sports Team. All right, thank you, John.
Speaker 1: Futures are lower s and P features down one, pot
Speaker 1: Dal futures down forty seven, NAZAC features down twenty four points.
Speaker 1: Much more to come on this Thursday morning edition of
Speaker 1: Bloomberg Daybreak. Stay with us. This is Bloomberg, The Bloomberg
Speaker 1: Sports Report was brought to you by Audie. Don't let
Speaker 1: someone else drive off and the Audi model you've always wanted.
Speaker 1: Visit your local Tri state autie dealer to get behind
Speaker 1: the wheel of yours today, or visit Autie Offers dot
Speaker 1: com for more information, markets, headlines and breaking news twenty
Speaker 1: four hours a day at Bloomberg dot com, the Bloomberg
Speaker 1: Business Outland at Bloomberg Quick Tape, She's a Bloomberg Business Lash.
Speaker 1: I'm Nathan Hagar. Futures are moving just to touch lower
Speaker 1: after Yesterday's surge following FED Chair Powell's remarks at the
Speaker 1: Brookings Institution confirming the pace of interest rate hikes will slow.
Speaker 1: We checked the markets every fifteen minutes during the trading
Speaker 1: day on Bloomberg SMP futures right now are down four points,
Speaker 1: STOW futures down six five. Nasty futures are lower by
Speaker 1: thirty four points. The tenure Treasury is up one thirty
Speaker 1: second deal three point six zero percent build on the
Speaker 1: two year four point three two percent. IMAX Screwed is
Speaker 1: up eight tenths percent, up sixty three cents eighty one
Speaker 1: dollar nineteen cents for a barrel of West Texas Intermediate
Speaker 1: Comex gold is up one eight percent, up thirty one
Speaker 1: an ounce, the euro one point zero four two one
Speaker 1: against the dollar. The end is at one thirty six
Speaker 1: point four two. Bitcoins down almost a ten percent, just
Speaker 1: shy of seventeen thousand, one hundred. That's a Bloomberg business flash.
Speaker 1: And now here's Michael Barr McK more on let's going
Speaker 1: on around the world. Michael Nathan, thank you very much.
Speaker 1: A House committee can now get a look at six
Speaker 1: years of Donald Trump's tax returns. It comes a week
Speaker 1: after the Supreme Court cleared the way for their release.
Speaker 1: More Chinese cities are easing some anti virus restrictions as
Speaker 1: police patrol their streets to head off protests demonstrators, and
Speaker 1: several cities demanded an end to controls that can find
Speaker 1: millions of people to their homes. In the NBA, the
Speaker 1: next lost, the Nets beat the Wizards the Celtics one.
Speaker 1: In the NHL, the Rangers won at the World Cup
Speaker 1: four games to including Germany against Costa Rica. Global News
Speaker 1: twenty four hours a day on air and on Bloomberg
Speaker 1: Quick Tank, powered by more than twenty seven un your
Speaker 1: journalist and analysts, more than twenty countries Michael Laren, this
Speaker 1: is Bloomberg Amy. All right, thank you, Michael. It's six
Speaker 1: nineteen on Wall Street Live from the Bloomberg Interactive Broker Studios.
Speaker 1: This is Bloomberg Daybreak. FED Jair J. Powell signaled the
Speaker 1: Federal Reserve will slow the pace of interest rate increases
Speaker 1: next month, while stressing borrowing costs will need to keep
Speaker 1: rising for some time to beat inflation. We welcome global
Speaker 1: market strategist Brian Leavitt with Investco. He joins us now. Brian,
Speaker 1: good morning to you. What's your takeaway from Fed chair
Speaker 1: Powell's speech. You know, it's funny the market loved it.
Speaker 1: Um to your rates came down pretty significantly. I'm not
Speaker 1: sure that the said I'm not sure J. Powell intended
Speaker 1: for that type of reaction from the market, but it
Speaker 1: does suggest to me that we are getting closer to
Speaker 1: the end of the tightening cycle and markets aren't gonna
Speaker 1: wait till the actual pause. Markets will start to sniff
Speaker 1: out a change in policy, and and that's how a
Speaker 1: recovery will commence. So it may already be taking place again.
Speaker 1: I don't think the Fed wanted that type of reaction, um,
Speaker 1: but it's a process that we're we're moving through and
Speaker 1: and should set the stage for a recovery in so
Speaker 1: you don't expect a recession, then well you may have
Speaker 1: a recession. Um. I liken it to nineteen eighty one,
Speaker 1: where inflation did peak in nineteen eighty Volker raised rates
Speaker 1: through the end of the year. You still had a
Speaker 1: recession in eighty one, but the markets had already priced
Speaker 1: in a lot of it, had already been down twenty
Speaker 1: seven percent and started to sniff out the recovery. So
Speaker 1: actually in that recession, markets were positive. So you may
Speaker 1: still have a recession, but the markets are going to
Speaker 1: lead it, lead us out of it. And so the
Speaker 1: markets are already looking towards what that recovery maybe rather
Speaker 1: than focus on a recession which is likely already priced in.
Speaker 1: You know, of like the big story has been the
Speaker 1: protests in China. How much of an impact has that had?
Speaker 1: Can you speak to that? Well, for right now the
Speaker 1: US markets, it's it's largely about the FED. I I
Speaker 1: don't believe that, um, you know, the two year rate
Speaker 1: or what the SMP five hundred has done has been
Speaker 1: focused on Shina because I think the expectation is the
Speaker 1: Chinese authorities will will slowly implement changes UM and and
Speaker 1: and um placate the protesters. But I think there is
Speaker 1: a positive in that you're starting to see in cities
Speaker 1: in China as some of the restrictions ease and and
Speaker 1: that of course would be a positive sign both for
Speaker 1: global demand but also ease concerns that supply chain challenges
Speaker 1: could re emerge. Let's bring it closer to home now
Speaker 1: and talk about holiday shopping season. Have you seen any
Speaker 1: indicators from this season, even though it's fairly early on,
Speaker 1: about how what that will and how that will have
Speaker 1: an impact. I think the most interesting thing we hear
Speaker 1: from the holiday season is from the retail saying that
Speaker 1: UM they're going to be aggressive with some markdowns in
Speaker 1: order to make sure that they're not oversupplied. I mean,
Speaker 1: that's what's interesting, is that businesses cut inventory too late
Speaker 1: during the early days of covid UM, and now they've
Speaker 1: been frantically trying to rebuild while the consumer is slowing.
Speaker 1: So what I'm seeing from the holiday season is a
Speaker 1: consumer that's hanging in there, but signs that clear signs
Speaker 1: to me that the inflation story on goods UM is
Speaker 1: beyond us. That's past a that's story, UM. I mean,
Speaker 1: I'm sorry it two story. We've we've moved beyond the
Speaker 1: inflation and goods UM and that's a positive for for
Speaker 1: the market because it suggests again that the pause and
Speaker 1: tightening is is probably near. Now. The NAVDAC has lost
Speaker 1: more than a quarter of its value this year. What
Speaker 1: do you see for the coming year? Rate? I think
Speaker 1: that rates and inflation are still going to remain higher
Speaker 1: than they were in the last cycle, so that's still
Speaker 1: a bit of a headwind for longer duration assets UM.
Speaker 1: I think that in a recovery, value stocks tend to outperform.
Speaker 1: Now that doesn't mean growth won't make up UM or
Speaker 1: tech stocks won't make up some of what had been lost.
Speaker 1: But we're certainly very unlikely to go back to anywhere
Speaker 1: near the loft evaluations that we had in the prior cycle,
Speaker 1: because you would need to get back to a much
Speaker 1: lower inflation in rate environment and that just doesn't seem
Speaker 1: to be in the cards in three So from a
Speaker 1: style perspective, I would favor the more value oriented UM
Speaker 1: and heavily cyclical parts of the market. Again, assuming met
Speaker 1: a recovery as we expect plays out, and just about
Speaker 1: thirty seconds here, Brian, can you give us a little
Speaker 1: guidance for the coming weeks and months. So my guidance
Speaker 1: would be that you're going to enter a recovery phase
Speaker 1: of the cycle. That seems the most likely next step.
Speaker 1: Most investors miss it because they tend to be focusing
Speaker 1: on the world not being good, when instead the market
Speaker 1: cares about whether things are getting better relative to expectations.
Speaker 1: My expectation as things will get better relative to expectations,
Speaker 1: producing a good backdrop for risk assets. All right, Brian,
Speaker 1: thank you very much for taking the time with us
Speaker 1: this morning. Ending on an optimistic note. Global market strategist
Speaker 1: Brian Levitt with Investco now checking the futures markets. S
Speaker 1: ANDP futures are five points lower, delve futures sixties, seven
Speaker 1: points lower, NASDAT futures down thirty seven points. Ten year
Speaker 1: treasury unchanged, the yield at three point six percent, the
Speaker 1: two year yield at four point three. Now I'm ex
Speaker 1: crude now nine tenths of a percent higher. That's seventy
Speaker 1: nine cents trading at eight thirty three sensor barrel. Much
Speaker 1: more to come on Bloomberg daybreak. This is Bloomberg the
Speaker 1: Bloomberg eleven three oh forecast study and breezy going up
Speaker 1: to forty five degrees, going up to fifty tomorrow A
Speaker 1: little mile They're showers return on Saturday, going up to
Speaker 1: sixty degrees. Broadcasting live from the Bloomberg Interactive Broker Studio
Speaker 1: in New York. Bloomberg in Living free to Washington, d C,
Speaker 1: Bloomberg nine one to Boston, Bloomberg one O six one
Speaker 1: to San Francisco, Bloomberg now sixty to the country, sirius
Speaker 1: XM to A one nine and around the globe the
Speaker 1: Bloomberg Business and Bloomberg Radio dot com. This is Bloomberg Daybreak.
Speaker 1: It's six thirty on Wall Street. Good Thursday morning. I'm
Speaker 1: Amy Morris and I'm Nathan Hager. We're about three hours
Speaker 1: away from the open of US trading. Time for the
Speaker 1: five things you need to know to start your day.
Speaker 1: Out to you by Interactive Brokers. Interactive Brokers charges margin
Speaker 1: loan rates from four point three three to five point
Speaker 1: three rates subject to change. Learn more at ib kr
Speaker 1: dot com. Slash compare first fed Share. J Powell is
Speaker 1: signaling the Central Bank will ease its aggressive pace of
Speaker 1: interest rate hikes as soon as this month. The time
Speaker 1: for moderating the pace of rate increases may come as
Speaker 1: soon as the December meeting. Given our our progress in
Speaker 1: tightening policy, the timing of that moderation is far less significant.
Speaker 1: J Pal's remarks indicate the Fed is likely to shift
Speaker 1: down to a fifty basis point hike at its next decision.
Speaker 1: Equity markets advanced sharply on Pal's comments. David could Love,
Speaker 1: founder of Mainstay Capital Management, says the more dovish tone
Speaker 1: was appropriate for current economic conditions. I think it's a
Speaker 1: recognition too of looking at the data p M E
Speaker 1: s or in contraction territory pending home sales down thirty
Speaker 1: year over year, and we haven't felt the full impact
Speaker 1: of these rate hikes we've had. David Cutler with Mainstay
Speaker 1: Capital Management, believes Pal's calm. It's also indicate he's mindful
Speaker 1: of the Fed going too far with great hikes. Well.
Speaker 1: The SP five hundred closed up three per cent after
Speaker 1: Powell's remarks. The rally extended overseas, as well as stocks
Speaker 1: in Europe and Asia advancing. In China, there is also
Speaker 1: optimism on COVID, with authorities now downplaying the severity of
Speaker 1: the virus. China's COVID czar says the country's in a
Speaker 1: new phase of the pandemic. Back in the U S.
Speaker 1: Desgrised fd X founder Sam Bankman Freed spoke publicly yesterday
Speaker 1: denying fraud while admitting to management errors. At a duty
Speaker 1: to all of our stakeholders, to our customers, our freeditor
Speaker 1: is a head of duty to our employees, to our investors,
Speaker 1: to the regulators of the world to do right by them,
Speaker 1: to make sure the rate things happened to the company,
Speaker 1: and and do a good job of that. Sam Bankman
Speaker 1: Freed spoke at the New York Times deal Books Sunne
Speaker 1: Let's check Big Tech now Amy as standoff between two
Speaker 1: powerful CEOs appears to be easing Bloomberg. Steve Rappaport joins
Speaker 1: US Live with that story. Good morning Steve, Good morning
Speaker 1: Nathan and Amy. It was all a misunderstanding. That's how
Speaker 1: Elon Musk described his tip with Apple CEO Tim Cook.
Speaker 1: The Twitter chief, accused Apple of threatening to boot the
Speaker 1: platform from its app store, but on Wednesday, Musk said
Speaker 1: the tech bosses spoke and the matter has been resolved,
Speaker 1: with Cook reassuring him that Apple never intended to cut
Speaker 1: ties with Twitter live in New York. I'm Steve Rappaport
Speaker 1: Bloomberg day Break. All right, Steve. Thanks, That's the five
Speaker 1: things you need to know to start your day, brought
Speaker 1: to you by Interactive Brokers. SMP futures are now down
Speaker 1: to point down. Futures down forty eight, Nasdaq futures down
Speaker 1: twenty four points ten. Your treasuries little change, the yield
Speaker 1: three point six zero percent. You'ld on the two year
Speaker 1: four point three two percent. Straight ahead, your latest local
Speaker 1: headlines and the check off sports. This is Bloomberg. It's
Speaker 1: sixty three on Wall Street. Let's bring in Michael bar
Speaker 1: with more on what else is going on in New
Speaker 1: York and around the world. Good morning, Michael, Good morning Amy.
Speaker 1: Fairs may rise next year for New York mt A writers.
Speaker 1: Fairs on subways, buses, and commuter real lines could go
Speaker 1: up by five point five percent next year. M t
Speaker 1: A Chief Financial Officer Kevin Willins on ABC seven. Has
Speaker 1: not been a fair increase, as you know, since April
Speaker 1: of Since then, the labor wages have increased cumulatively by
Speaker 1: seven point four percent. M t A CFO Willens says
Speaker 1: the potential increase would push the two seventy five cost
Speaker 1: of a single subway or bus ride to two dollars
Speaker 1: ninety cents next year and three oh five in It
Speaker 1: comes as the agency is seeking additional federal, state, or
Speaker 1: city funding to help fill budget deficits. The Biden administration
Speaker 1: student loan forgiveness plan remains on hold. The Fifth U
Speaker 1: s Circuit Court of Appeals denied a request from the
Speaker 1: federal government to temporarily reverse the lower court order that
Speaker 1: blocked rollout of the plan. Loyola Law University professor Lori
Speaker 1: Levinson says the next stop is likely the Supreme Court.
Speaker 1: The Fifth Circuit delta blow President Biden's plan to have
Speaker 1: a loan forgiveness program for student loans, but the courts
Speaker 1: have been saying that in fact, Biden did not have
Speaker 1: the power to move forward on this. Loyola Law University
Speaker 1: Professor Lori Levinson. President Biden announced in August that the
Speaker 1: government would forgive up to ten thousand dollars in student
Speaker 1: loan debt. Closing statements are set to begin today in
Speaker 1: New York and the criminal tax evasion trial of former
Speaker 1: President Trump's family real estate business. The Trump Organization is
Speaker 1: accused of compensating certain executives through fringe benefits that were
Speaker 1: never declared on income taxes. The Treasury Department turned over
Speaker 1: six years of Donald Trump's tax returns to a House
Speaker 1: committee after the Supreme Court cleared the way for the release.
Speaker 1: The Ways and Means Committee has been seeking the return
Speaker 1: saying it needs them to consider potential legislation on presidential
Speaker 1: compliance with tax rules and mandatory I R. S Audit
Speaker 1: policy for presidents. The Rockefeller Center Christmas Tree was officially
Speaker 1: lit up last night in New York City. Fifty thousand
Speaker 1: led lights are on the eight two foot tall Norway
Speaker 1: Spruce in Midtown Manhattan. Christine McVeigh has died. Mcve sang
Speaker 1: lead on many of Fleetwood Mac's biggest hits, and Like
Speaker 1: Little Lies, McVeigh wrote many of the group's songs. Christine
Speaker 1: McVeigh was seventy nine Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Take, powered by
Speaker 1: more than twenty seven hundred journalists analysts more than a
Speaker 1: hundred twenty countries. At Michael Barr, this is Bloomberg Gaming,
Speaker 1: all right. Thank you, Michael John now for the sports
Speaker 1: report brought to you by Price Day out. He Here's
Speaker 1: John's dash our alright, Amy. The next continue to have
Speaker 1: their struggles at home. Just one win at the Garden
Speaker 1: in the past month. We were beaten by Milwaukee one
Speaker 1: o nine one oh three honest as the Compo led
Speaker 1: the Bucks with thirty seven points, Kevin Duran led the
Speaker 1: Nets with thirty nine. They made Washington at Barkley's one
Speaker 1: thirteen one oh seven nets with three straight wins move
Speaker 1: over five hundred. Rangers had lost their last three, but
Speaker 1: in Ottawa goal in each period, all three assisted by
Speaker 1: Ryan Linger in the ring. Just beat the Senators three
Speaker 1: to one with backup Jaraslav Halaki in goal. It's his
Speaker 1: first win as a Ranger. A long time Pittsburgh Penguins
Speaker 1: All Star defenseman Christah Tang just suffered a stroke for
Speaker 1: the second time. Also happened back in two thousand and
Speaker 1: fourteen when he missed two months, and Latang is expected
Speaker 1: to return at some point. The NFL game tonight Buffalo
Speaker 1: at New England. That's a game the Jets will have
Speaker 1: an interest in. The a f C East has the
Speaker 1: Bills and Dolphins at top at eight and three of
Speaker 1: the Jets are seven and four in the Patriots are
Speaker 1: six and five. The Jets on Sunday visit the nine
Speaker 1: and two Vikings. The Jets coach Rob Salon, there's a
Speaker 1: reason why they're the record they have. They've been everybody
Speaker 1: in under vision. UM. They'd beat Miami, they'd be Buffalo,
Speaker 1: they'd be New England. They're they're very talented. UM. Offensively,
Speaker 1: they've got skill players, are very well coached. UM. Defensively,
Speaker 1: they're very veteran, very smart. They play smart sala football.
Speaker 1: So um challenge and a big one for the Giants. Sunday,
Speaker 1: Washington comes in having won six of the last seven.
Speaker 1: The Giants just lost twice and the sixth Days fan
Speaker 1: Don Addingly has a new job. The ext Yankee grade
Speaker 1: no longer the manager in Miami. He's now the bench
Speaker 1: coach in Toronto. ESPN reports the Yankees offered to Aaron
Speaker 1: Judges eight years, three hundred million. It's believe Judge will
Speaker 1: either stay in New York or signed with San Francisco.
Speaker 1: John Stash were Bloomberg Sports in all right, Thank you, John.
Speaker 1: It is six thirty eight on Wall Street. Time to
Speaker 1: take a look at stocks and some of the names
Speaker 1: that are moving in the pre market for that We're
Speaker 1: joined by Bloomberg Radio and TV Markets corresponded Crety Goopta Creaty,
Speaker 1: Good morning to you, Good morning Amy. We'll start off
Speaker 1: with a Dow heavyweight if we can even utter the
Speaker 1: Dow around here of the salesforce. C RM is your ticker,
Speaker 1: and shares are down about six percent in the pre market.
Speaker 1: This comes after a pretty grim forecast that fourth quarter
Speaker 1: revenue forecast of seven point nine three billion dollars to
Speaker 1: eight three billion the analyst estimate though with eight point
Speaker 1: zero three so they're falling slightly short of that. Remember,
Speaker 1: anytime someone a company, I should say, decide to kind
Speaker 1: of decrease or forecast or cut their forecast or and
Speaker 1: sort of guidance for the future, you're it is going
Speaker 1: to weigh on the stocks. And you've seen them really
Speaker 1: get punished lately. Um about extra margin as you start
Speaker 1: to see the slowdown. Investors very sensitive to the macroeconomic picture.
Speaker 1: But it's not just that. They also said the company's
Speaker 1: co CEO, Brett Taylor, would also step down. Nevertheless, you
Speaker 1: didn't actually have some decent numbers on the on on
Speaker 1: the balance sheet there, but it was enough to, like
Speaker 1: you said, send the shares lower and something you want
Speaker 1: to watch with the Dow because features are about flat
Speaker 1: right now. But as given Salesforce is one of the heavyweights,
Speaker 1: it could have a little bit of ripple effect to
Speaker 1: that index. We should also look at Snowflake for example.
Speaker 1: Really stick with this the tech theme. S n o
Speaker 1: W also down by about six percent, and this is
Speaker 1: important because Snowflake was really kind of on a roll.
Speaker 1: It was really rallying with a lot of the cloud companies,
Speaker 1: a lot of cybersecurity companies. But their story this morning
Speaker 1: is quite similar to that of Salesforce, which they're dropping
Speaker 1: after their forecast signals a massive slowdown in tech spending.
Speaker 1: And remember we heard this from crowd Strike yesterday. This
Speaker 1: idea that the big boom and big kind of chain
Speaker 1: in cloud infrastructure broadly first kind of initiated, and I
Speaker 1: would say UM gained a lot of momentum during the
Speaker 1: pandemic and then another leg of momentum after the war Ukraine.
Speaker 1: All of that is slowing down now, so you're almost
Speaker 1: seeing a little bit of a reset and spending. As
Speaker 1: of course, a lot of companies are far more cautious
Speaker 1: of where they put their money, so Snowflake shares snow
Speaker 1: down about six percent, and remember fell down by ten
Speaker 1: percent after the bell yesterday, so you're starting to see
Speaker 1: a lot of pain for those shares. Emai, I'll wrap
Speaker 1: it up with one more here, Victoria's Secret. V s
Speaker 1: c O shares were down as much as one percent earlier.
Speaker 1: They are now about flat in the session. But keep
Speaker 1: an eye on this one because this is really important.
Speaker 1: Their profit outlook is also trailing estimates, so you're not
Speaker 1: actually seeing this become just a tax story. It looks
Speaker 1: like in the consumer spending world, the idea of the
Speaker 1: strength of the consumer. If Victoria's Secret is your gauge,
Speaker 1: not sending a great sign alright, Bloomberg Radio and TV
Speaker 1: Markets correspondent Creedy Gupta, thank you for that inside, Thanks
Speaker 1: for joining us and looking at stocks as a whole.
Speaker 1: Ahead of the open, futures are lower. SMP futures down
Speaker 1: three points, DAL futures down fifty seven, Nasdaq futures down
Speaker 1: twenty six points. Ten year treasury up one thirty second,
Speaker 1: the yield at three point six, the two year yield
Speaker 1: at four point three. We continue to watch the markets
Speaker 1: for you here on Bloomberg Daybreak. Stay with us this
Speaker 1: is Bloomberg. The Bloomberg Sports Report was brought to you
Speaker 1: by Audie. Don't let someone else drive off in the
Speaker 1: Outie model you've always wanted. Visit your local try state
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Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot com, the Bloomberg Business Outland at Bloomberg Quick
Speaker 1: takes a Bloomberg Business Flash. I'm Nathan Hagar. After yesterday's searche,
Speaker 1: futures are taking a bit of a breather this morning,
Speaker 1: Let's head right over to the First Bird breaking news
Speaker 1: desk for today's morning call. Here's Bill Maloney. Good morning, Bill,
Speaker 1: Good morning Nathan. That's right modest laws in the futures
Speaker 1: after yesterday's jump. With down futures down sixty three points,
Speaker 1: subs dropped three and a half and as the futures
Speaker 1: fall by seven, the US ten year at three point
Speaker 1: six percent, Gold is up twelve, Oil is in the green,
Speaker 1: and bitcoin is trading little change. Japan rose point nine
Speaker 1: percent over tonight, while up markets are also trading in
Speaker 1: the green this morning and back in the US on
Speaker 1: the economic Frinday dirty PC and initial jobs claims at
Speaker 1: Manufacturing p M I and at ten o'clock I s
Speaker 1: M Manufacturing After the bells Night's salesforce reported shares it
Speaker 1: down six percent in the pre market, and Snowflake Q
Speaker 1: four product revenue forecast missed estimates. In deal news, HP
Speaker 1: is said to have expressed interest in cloud from New Tannics,
Speaker 1: and in other news, JP Morgan said US stocks to
Speaker 1: sink in the first half of three and Taiwan semi
Speaker 1: plans to make more advanced chips in the US at
Speaker 1: the urging of Apple wrapping things up. Otis Worldwide was
Speaker 1: cut to equate at Barkley's Capital one cut underweight over
Speaker 1: at Morgan Stanley Live from the first breaking News descon
Speaker 1: Boom Maloney, Nathan, thanks Phil to get live breaking news
Speaker 1: over your Bloomberg type squawk on your terminal s Q.
Speaker 1: You a go, that's the Bloomberg business Flash. Now here's
Speaker 1: Michael Barr with more on what's going on around the world. Michael,
Speaker 1: thank you very much, Nathan. The House voted to block
Speaker 1: a strike by the nation's railway workers, and a separate
Speaker 1: vote also adding seven days have paid sick leave. To
Speaker 1: the agreement, both bills now head to the Senate. President
Speaker 1: Joe Biden has set to welcome French President Emmanuel mccrawl
Speaker 1: to the White House today. The visit will conclude with
Speaker 1: the first state dinner of the Biden administration. In the NBA,
Speaker 1: at the next loss, the Nets beat the Wizards the
Speaker 1: Celtics one. In the NHL, the Rangers won at the
Speaker 1: World Cup four games today, including Germany against Costa Rica.
Speaker 1: Global News twenty four hours a day on air and
Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred
Speaker 1: journalist analyists more than a hundred twenty countries. Michael Barr
Speaker 1: and this is Bloomberg, Nathan Michael. Thanks at six forty
Speaker 1: nine on Wall Street. Let's turn the news and science
Speaker 1: and technology now. The Bloomberg n j I T STEM
Speaker 1: Report is brought to you by New Jersey Institute of Technology,
Speaker 1: ranked the top hundred national university by US News and
Speaker 1: World Report and the number one public university in New
Speaker 1: Jersey by Forbes. What will You Make It? Nj I T.
Speaker 1: Learn more at nj I T dot E d um
Speaker 1: now what it is making news in science, Technology, Engineering
Speaker 1: and Math. Three years since the world's first documented coronavirus
Speaker 1: patient in China, the country's finally pivoting from efforts to
Speaker 1: quash the pandemic. China's covid zar says the fight has
Speaker 1: entered a new phase and the government is making some concessions,
Speaker 1: like allowing some low risk patients to isolate at home
Speaker 1: instead of in controversial quarantine camps. The European Union's Executive
Speaker 1: arm will conduct a stress test at Twitter's headquarters earlier
Speaker 1: next early next year, as the block's digital chief, Warren
Speaker 1: Delon Musk he was had quote huge work ahead to
Speaker 1: comply with content moderation laws. The European warning also came
Speaker 1: as Treasury Secretary Janet Yelling said Musk's purchase of Twitter
Speaker 1: would warrant a government review if themed to raise national
Speaker 1: security concerns, and another one of Musk's companies is making news.
Speaker 1: Neurallink says it aims to start putting its coin sized
Speaker 1: computing brain implant into human patients within six months. The
Speaker 1: product consists of a tiny device and electrode laced wires,
Speaker 1: along with a robot that carves out a piece of
Speaker 1: a person's skull and implants it into the brain. That's
Speaker 1: the Bloomberg J I T Stem Report. Amy. All right,
Speaker 1: thank you, Nathan, and we're live from the Bloomberg Interactive
Speaker 1: Broker Studios, where it is six fifty one on Wall
Speaker 1: Street Time now to check what's going on in d C.
Speaker 1: Some of the top stories in our nation's capital include
Speaker 1: the House voting to avert a potential rail strike by
Speaker 1: passing a bill to make union workers accept a contract
Speaker 1: with rail companies. A House panel can now get a
Speaker 1: look at Donald Trump's tax returns, Republicans are going to
Speaker 1: continue spending earmarks next year, and the first White House
Speaker 1: to dinner in three years is set for tonight. We
Speaker 1: welcome Bloomberg Government reporter Jack Fitzpatrick. A lot to unpack here, Jack.
Speaker 1: The House passing legislation to a vert of railroad strike.
Speaker 1: How now it's going to the Senate now. But what
Speaker 1: happens next, Well, that's the big question. And as a
Speaker 1: question of timing and what exactly they can pass. The
Speaker 1: House actually took two votes. They passed quite easily, with
Speaker 1: two votes in favor a standard measure to require the
Speaker 1: unions essentially to accept the offer that has been made.
Speaker 1: There was then a separate vote much closer that only
Speaker 1: got three Republicans to vote in favor that would add
Speaker 1: seven days of paid sick leave to that contract. Now
Speaker 1: in the Senate, we're hearing a lot from Bernie Sanders
Speaker 1: saying he was going to demand an amendment, demanded a
Speaker 1: measure to add those seven days of paid sick leave.
Speaker 1: Otherwise he wasn't going to allow a quick vote, And
Speaker 1: that's very important in the Senate, where things drag on.
Speaker 1: It can take a week or so to pass something
Speaker 1: if you don't get unanimous consent to speed things up. Uh,
Speaker 1: he is trying to get as much support as possible
Speaker 1: for that more generous version with seven days of paid
Speaker 1: sick leave. John Thune, the Republican whip, is that he
Speaker 1: doesn't think there would be sixty votes for that. So
Speaker 1: there's a question of how quickly they can take this up,
Speaker 1: how quickly they can get a unanimous time agreement to
Speaker 1: try to quickly get something to the President's desk, and
Speaker 1: if it's possible for Sanders to rally enough people around
Speaker 1: the sick leave or if he has to settle for
Speaker 1: the the standard agreement that nine out of the thirteen
Speaker 1: unions have accepted but four have not if they don't
Speaker 1: pass that sick leave part of the legislation, will there
Speaker 1: be a strike? Uh? It's well, there wouldn't be a
Speaker 1: strike if Congress demands that this be put into place.
Speaker 1: This is how they avoid a strike is by saying, okay,
Speaker 1: the the unions have not all unanimously voted yes, but
Speaker 1: Congress acting is the thing that avoids a strike. At
Speaker 1: this point, the negotiations aren't taking care of it. And
Speaker 1: that's why President Biden, in a very significant move, has
Speaker 1: said Congress needs to step in and legally require some
Speaker 1: sort of deal to be put into place. And the
Speaker 1: question now is if they can act quickly enough before
Speaker 1: it disrupts the freight lines, and if they choose to
Speaker 1: do the the offer that already stands or add that
Speaker 1: sick leave. Okay, let's shift gears now, Jack, the Housewives
Speaker 1: and Means Committee has Donald Trump's tax returns for the
Speaker 1: past six years. Now, what happens, Well, it's not a
Speaker 1: moment too soon, because it's just about the end of
Speaker 1: the Congress. This the Congress ends at the end of
Speaker 1: the year or the next one begins at very early January. Uh.
Speaker 1: They essentially want to find out if he has been
Speaker 1: following the lawn to what extent he's been following the law.
Speaker 1: You probably remember the New York Times or Boarding a
Speaker 1: couple of years ago of the very low amounts that
Speaker 1: he paid down to zero in some years of personal
Speaker 1: income tax. Uh. They made the case in court that
Speaker 1: they needed this for legislating on the the issue of
Speaker 1: holding the president accountable and making sure the president follows
Speaker 1: I R. S Law. Uh. So they're they're going to
Speaker 1: have to have a conversation about what they do. It's
Speaker 1: very late to try to pass a bill, but this
Speaker 1: is a really a matter of the public interest. Uh.
Speaker 1: And and so they're going to meet today. Lawmakers are
Speaker 1: going to meet today to discuss what they've got. And Uh.
Speaker 1: It's again, it's a bit of a race against time
Speaker 1: to ask what a democratically controlled House is going to
Speaker 1: do when they're about to hand over the majority to
Speaker 1: the Republicans in early January. And you have a story
Speaker 1: Jack on the Bloomberg Terminal about how House Republicans plan
Speaker 1: to keep spending earmarks in place for the next year.
Speaker 1: That's actually a significant move. Yeah. You know, there was
Speaker 1: so much Republican opposition to earmarks, which had gotten a
Speaker 1: really bad reputation. Uh. You know, a significant portion of
Speaker 1: the Tea Party wave of Conservatives was against ear marks,
Speaker 1: but the Democrats brought it back and got Republicans to
Speaker 1: to go along with it and and participate at least
Speaker 1: many of them over the last couple of years. Uh.
Speaker 1: And there have not been scandals, it has not been
Speaker 1: very much money in the context of federal spending. They
Speaker 1: added nine point seven billion dollars in local projects specifically
Speaker 1: requested by lawmakers in the in the last omnibus that
Speaker 1: was enacted in March. And so the Republicans in the
Speaker 1: House actually voted a hundred fifty eight to fifty two,
Speaker 1: according to my colleagues Eric Kasson and Emily Wilkins in
Speaker 1: a closed door vote. Uh so that's a very strong majority.
Speaker 1: As you saw leadership and leadership aligned Republicans pointing out
Speaker 1: that this is not quite the scandal ridden kind of
Speaker 1: bridge to nowhere process us that had been panned in
Speaker 1: the past years. And finally, jack President Biden welcoming French
Speaker 1: President Emmanuel mccron for the first White House state dinner
Speaker 1: and more than three years, what are you going to
Speaker 1: be watching for? Well, mccron comes with some complaints. The
Speaker 1: French don't really like some of the the electric vehicle
Speaker 1: manufacturing measures meant to spur American production of electric vehicle
Speaker 1: parts that were put in place in the major reconciliation
Speaker 1: bills enacted earlier this year that Democrats got through Congress. Uh,
Speaker 1: they're still not very happy also about the us UK
Speaker 1: deal with Australia on nuclear submarines that the that France
Speaker 1: had wanted to uh be part of or really wanted
Speaker 1: to supply the Australians with nuclear submarines. Uh. So, you know,
Speaker 1: it's overall not a terribly negative relationship with President Biden,
Speaker 1: but there are a couple key complaints that mccron brings
Speaker 1: at a time when otherwise Biden is kind of riding
Speaker 1: high given Democrats over performance compared to expectations in the
Speaker 1: November midterms. Alright, Bloomberg Government reporter Jack Fitzpatrick, always a
Speaker 1: pleasure to talk to you. Thank you very much for
Speaker 1: taking the time this morning. You can read more about
Speaker 1: these stories on Bloomberg dot com or on the Bloomberg terminal.
Speaker 1: And a reminder, you can follow all of the latest
Speaker 1: on Bloomberg Radio in Washington, Bloomberg nine one and one
Speaker 1: oh five point seven. Fm h D two futures are lower.
Speaker 1: S and P futures down three points, DAL futures down
Speaker 1: fifty seven, NASTAC futures down twenty two. Bloomberg Surveillance with
Speaker 1: Tom Keene, Lisa Bramowitz, and Jonathan Farrow coming up next,
Speaker 1: along with Nathan Hagar. I'm Amy Morris, and this is Bloomberg.