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

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Speaker 1: day Break for Thursday, December eighty two. Coming up to shower,

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Speaker 1: Wall Street looks to snap a five day losing streak

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Speaker 1: as recession fears pile up. Socks in Hong Kong rally

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Speaker 1: under course at mask wearing requirements maybe scraped. Elon Musk's

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Speaker 1: bankers consider new margin lungs to cut risky Twitter debt

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Speaker 1: and disgrace. Crypto founder Sam Bankman Freed may soon appear

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Speaker 1: on Capitol Hill. Governor hokel announces her plans for New

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Speaker 1: Yorkers to avoid the Triple Demick. Plus, New Jersey Governor

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Speaker 1: Murphy is out of the hospital, left of surgery. I'm

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Speaker 1: Michael bar More ahead, I'm John Stas shown sports Aaron

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Speaker 1: Judge resigned with the Yankees, the Mets at a picture

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Speaker 1: wins for the Knicks, Nets, Rangers, and St. John. That's

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Speaker 1: all trendy ahead on Bloomberg day Break on Bloomberg eleven

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Speaker 1: three on New York, Bloomberg nine one, Washington, d C,

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Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and

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Speaker 1: Francisco Sirius x M one nineteen and around the world.

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Speaker 1: Old on Bloomberg Radio Dot Carmen via The Bloomberg Business.

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Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow. Any

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Speaker 1: West Dock Index futures are higher this morning. It is

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Speaker 1: five o one on Wall Street. We checked the markets

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Speaker 1: all day long at Bloomberg Radio. Right now, SNP futures

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Speaker 1: are up five points, or a tenth of upper cent.

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Speaker 1: DAL futures are little change. NOWSDACK futures up two tents

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Speaker 1: of upper cent or twenty three points. The decks in

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Speaker 1: Germany little changed. Ten Your treasury down eight thirty seconds,

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Speaker 1: held three point four or four percent. The yield on

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Speaker 1: the two year is at four point to seven percent.

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Speaker 1: Nathan Well Karen. Stocks are coming off five straight days

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Speaker 1: of losses, and the biggest moves have been in the

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Speaker 1: bond market. The spread between the two and tenure yields,

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Speaker 1: a gauge often used to predict recessions, is it's most

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Speaker 1: inverted since the nineteen seventies. David Harden, his chief investment

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Speaker 1: officer at Summit Global Investments, Well, I think people are

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Speaker 1: still a little bit focused on the possibility of this

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Speaker 1: uh PAL pivot. I think that's in people's minds and hope,

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Speaker 1: I think maybe they're wanting that under their Christmas tree,

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Speaker 1: if you will. And and so I think this stats

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Speaker 1: a little bit more focused on him playing Santa Claus

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Speaker 1: for us, But in all reality, the bond market might

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Speaker 1: have it right. They seem to get it right a

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Speaker 1: lot more often, so we have to pay attention to

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Speaker 1: that move some global investments, David Harden says the main

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Speaker 1: focus for traders remains sharply on the FED well in

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Speaker 1: Asia overnight, Nathan Hong Kong was the top performer in

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Speaker 1: the region. The Hang Sang game more than three percent

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Speaker 1: in today's session, and we get the recap from Bloomberg

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Speaker 1: tivon Man in Hong Kong, Karen and Nathan. The region

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Speaker 1: really only being lifted by one story in Hong Kong

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Speaker 1: after reports the city is looking at scrapping rules that

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Speaker 1: require masks at public venues, also cutting quarantine times from

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Speaker 1: seven to five days. The reopening trade was once again

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Speaker 1: on fire from a Calcasino's airlines to retail all up

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Speaker 1: on the news. This clear preference on Chinese equities and

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Speaker 1: M and B is quite clear now, with sources telling

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Speaker 1: us Chinese regulators have asked the nation biggest insurers to

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Speaker 1: buy bonds after retail investors offloaded cash from their fixed

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Speaker 1: income investments in Hong Kong. I'm Von Man Bloomberg Daybreak.

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Speaker 1: Al righty Von, thank you. Meantime in China, senior health

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Speaker 1: advisors warning the vast majority of the population may eventually

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Speaker 1: contract COVID. The government is now taking steps toward reversing

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Speaker 1: its zero tolerance policy. The former deputy chief of China's

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Speaker 1: disease control agency says six of the population could get

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Speaker 1: infected in the first wave. Back here in the US,

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Speaker 1: Nathan Tesla and Twitter are the names where watching bankers

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Speaker 1: for Elon Musk are considering providing the billionaire with new

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Speaker 1: margin loans tied to the companies, and we get the

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Speaker 1: details live with Bloomberg Steve Rabbitport, Steve, good morning, Good morning, Karen,

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Speaker 1: and Nathan. The margin loans are one of several options

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Speaker 1: for Musk's backers to ease the burden of the thirteen

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Speaker 1: billion dollars Twitter took on as part of his acquisition

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Speaker 1: of the platform. The banks, led by Morgan Stanley, put

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Speaker 1: up their own cash to supply the entire debt package.

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Speaker 1: Because of a decline in credit markets. Musk's tumultuous start

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Speaker 1: at the helm of Twitter didn't help the cause either.

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Speaker 1: The company is estimated to face annual interest costs of

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Speaker 1: about one point two billion dollars if the current debt

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Speaker 1: structure remains in place. Live in New York, I'm Steve

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Speaker 1: Rappaport Bloomberg Daybreak. Thanks Steve, turning to the crypto space.

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Speaker 1: We could soon get more information on the epic collapse

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Speaker 1: of f t X. Disgraced founder Sam Bankman Freed may

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Speaker 1: appear on Capitol Hill as soon as next week. Details

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Speaker 1: from Bloomberg's Amy Morris in our newsroom in Washington. The

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Speaker 1: Senate Banking Committee has asked Bankman Freed to appear on

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Speaker 1: Capitol Hill December four. Lawmakers want more information about the

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Speaker 1: collapse of fd X, and they want to know quote,

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Speaker 1: how client funds were misappropriated, how clients were blocked from

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Speaker 1: withdrawing their own money, and how you orchestrated a cover up.

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Speaker 1: The House Financial Services Committee hearing is set for the thirteen.

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Speaker 1: Bank Man Freed had said he might not be ready

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Speaker 1: to testify by then. Chair Maxine Water says a subpoena

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Speaker 1: is quote definitely on the table in Washington. I'm maybe

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Speaker 1: more as Bloomberg Daybreak, right, Amy, thank you. That's not

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Speaker 1: the only news on disgraced former ecuatives this morning. Late yesterday,

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Speaker 1: former Theonis President in chief operating officer Ramish Sunny Balwani

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Speaker 1: was sentenced to prison, and Bloomberg said, Baxter has that story.

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Speaker 1: The sentence coming from US District Judge Edward Davola and

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Speaker 1: San Jose thirteen years for defrauding investors and patients of

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Speaker 1: Pharaonis Bwana ran the blood testing startup alongside its founder

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Speaker 1: and chief executive officer, Elizabeth Holmes. The sentence is very

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Speaker 1: close to what prosecutors had asked for a term of

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Speaker 1: fifteen years. The judge said he'll decide later how much

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Speaker 1: restitution must be paid. The government has asked for both

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Speaker 1: to be ordered to pay about eight hundred million dollars.

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Speaker 1: In San Francisco, I'm at Baxter Bloomberg daybreak, all right,

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Speaker 1: and thank you. In the labor market, inflation plus a

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Speaker 1: battle for talent and now cost cutting efforts are making

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Speaker 1: for an interesting picture of corporate America. Now we're learning

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Speaker 1: ex On Mobile is awarding its US employees pay increases

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Speaker 1: above inflation. Just weeks after posting record profit. Bloomberg's Charlie

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Speaker 1: Pellett reports it underscores just how strong two has been

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Speaker 1: for the fossil fuel industry, while other sectors like technology

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Speaker 1: and finance are cutting jobs. Sources tell Bloomberg workers will

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Speaker 1: receive an average salary bump of nine on. Those who

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Speaker 1: got promoted will see an additional five percent increase. A

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Speaker 1: spokeswoman four X on Mobile says in aggregate it is

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Speaker 1: Exxon's biggest salary award in fifteen years. In New York,

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Speaker 1: Charlie Penalty Bloomberg daybreak. All right, Charlie, thanks, and it's

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Speaker 1: a different labor story at the New York Times. More

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Speaker 1: than a thousand employees are preparing to stage a one

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Speaker 1: day walk out today. It escalates a standoff with management

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Speaker 1: over a stalled contract. A New York Times spokesperson said

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Speaker 1: the company was disappointed that the news guild was threatening

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Speaker 1: to strike again. Futures are higher this morning, with S

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Speaker 1: and P futures up seven points. Straight ahead, your latest

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Speaker 1: of local headlines, plus a check of sports. And this

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Speaker 1: is Bloomberg. Thanks hearing. It's five oh seven on Wall Street.

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Speaker 1: We're fifty one degrees in central Park should be nice today, Sonny,

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Speaker 1: and mild highs in the low fifties. I'm gonna get

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Speaker 1: down to the mid thirties tonight. It's gonna be a

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Speaker 1: little cooler as we head into the weekend. Now, let's

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Speaker 1: bringing Michael bar with a look at what else is

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Speaker 1: going on in New York and around the world. Good morning, Michael,

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Speaker 1: Good morning Nathan. Governor Kathy Hocle is pushing efforts to

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Speaker 1: keep New Yorkers healthy with winter in the holidays just ahead.

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Speaker 1: Hocal says people need to take precautions because COVID cases

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Speaker 1: are ticking up alongside R s V and children and

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Speaker 1: influenza are not all the woods. The threat is real

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Speaker 1: and we have cases. I remember this. We're watching this intensely.

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Speaker 1: The winter is often a tough time for the most vulnerable,

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Speaker 1: but Hocal promises New York will be ready. Complacency is

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Speaker 1: our enemy. That is my biggest fear, that people are

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Speaker 1: so desensitized and feeling that well, it is the norm. Yes,

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Speaker 1: it has become our norm, but it does not have

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Speaker 1: to be the norm that everybody gets sick. Governor Hocal

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Speaker 1: says the state will provide to sting vaccines and nearly

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Speaker 1: eight thousand ventilators said to be sent to hospitals that

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Speaker 1: need them. Mayor Eric Adams says the system to provide

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Speaker 1: affordable housing is broken, not just in New York City

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Speaker 1: but all over the country. Adam, speaking at a faith

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Speaker 1: based summit in New York, says, we all just need

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Speaker 1: to stop kicking the can down the road. There's no

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Speaker 1: desire to come and bring you together and say you

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Speaker 1: have all of this property, why don't you come with

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Speaker 1: a real housing plan. There's no desire to fix it.

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Speaker 1: People are making money up the dysfunctionality of our cities

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Speaker 1: across the America. A frustrated Adam says, we know at

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Speaker 1: the beginning of the year we are going to fail

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Speaker 1: a large number of people, and they're primarily black and

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Speaker 1: brown and immigrants. The White House as President Joe Biden

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Speaker 1: will announced a thirties six billion dollar bailout for the

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Speaker 1: Central States Pension Fund, helping to show up one of

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Speaker 1: the nation's biggest multi employer plans. The President angered some

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Speaker 1: of his labor allies last week by signing legislation imposing

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Speaker 1: a contract he personally helped to negotiate between freight railroads

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Speaker 1: and their union's averting a possible strike that threatened to

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Speaker 1: cripple the economy. However, four of the twelve unions involved

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Speaker 1: rejected the contract. New Jersey Governor Phil Murphy had minor

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Speaker 1: surgery yesterday and is recuperating at home. The Governor's office

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Speaker 1: did not specify what the surgery was for, but said

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Speaker 1: it was a medical procedure. Officials also said it was

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Speaker 1: not related to the cancer. It's tumor. Murphy had removed

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Speaker 1: from Miss Kidney. In Global News twenty four hours a

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Speaker 1: day on air and on Bloomberg Quicktake, powered by more

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Speaker 1: than twenty seven hundred journalist and analysts more than a

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Speaker 1: hundred twenty countries. Michael barrb this is Bloomberg. Ne alright, Michael,

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Speaker 1: thank you almost five ten on Wall Street time for

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Speaker 1: the Bloomberg Sports Update, brought to you by twice State Out.

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Speaker 1: Good morning, John Stosh hour, Good morning Nathan. After the

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Speaker 1: news that Aaron Judge had resigned with the Yankees, some

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Speaker 1: details and merge about how it all went down. Believed

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Speaker 1: to be a two horse raised between the Yanks and Giants,

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Speaker 1: the San Diego Padres swooped in at the eleventh hour

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Speaker 1: offered Judge are reported ten years, four hundred million dollars

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Speaker 1: that got the attention of Yankee owner house Kleinebrenner, who

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Speaker 1: was vacationing in Italy. He got on the phone with

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Speaker 1: Judge up to his offer to the nine years, three

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Speaker 1: hundred and sixty million that got the deal done. Yankee

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Speaker 1: GM Brian Cashman said Steinbrenner was the Marianna Rivera of

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Speaker 1: the negotiations. The Padres then used some of that money

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Speaker 1: last night to sign Xander Bogart's away from the Red

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Speaker 1: Sox for eleven years, two hundred and eighty million Winter

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Speaker 1: meetings and with eighteen players having signed contracts worth a

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Speaker 1: total of one point six billion, the Mets out of

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Speaker 1: the picture of veteran Jose Quintana. This will be his

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Speaker 1: seventh teen He pits to an e r A under three.

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Speaker 1: Last season, Nick's all of a sudden playing defense. They

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Speaker 1: had allowed over a hundred points at each of the

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Speaker 1: first twenty three games, they allowed under ninety in the

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Speaker 1: last two. They've beat Atlanta at the Garden one thirteen

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Speaker 1: to eighty nine. Big game for Julius Randall thirty four points,

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Speaker 1: seventy rebounds, five assists at Barkley's nets made it five.

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Speaker 1: The last six beat Charlotte one two to one, sixteen

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Speaker 1: Pymrie irving thirty three points, Kevin Durant had twenty nine

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Speaker 1: and Seth Prairie twenty and the three of them together

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Speaker 1: had twenty three assists. Big third period for the Rangers,

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Speaker 1: they scored four times and a span of less than

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Speaker 1: six minutes, and they beat Vegas, the top team in

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Speaker 1: the West, five to one. Big East opener for St.

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Speaker 1: John's and eighty six sixty seven win over De Paul

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Speaker 1: John stash Award Bloomberg Sports Nathan, Thank you John, and

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Speaker 1: Bloomberg Sports was brought to you by Audie. Don't let

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Speaker 1: someone else drive off and the OUTI model you've always wanted.

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Speaker 1: Visit your local Tri state Audie dealer to get behind

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Speaker 1: the wheel of yours today, or visit Outie Offers dot

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Speaker 1: com for more information. Five eleven on Wall Street. Just

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Speaker 1: ahead on Bloomberg Daybreak, we'll get more on China's moves

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Speaker 1: away from COVID zero. First SMP futures are up four points,

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Speaker 1: staff futures up nine NASTAC futures are higher by twenty

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Speaker 1: four points. The tenure treasury is down seven thirty seconds

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Speaker 1: deal three point four or four percent yield on the

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Speaker 1: two year four point to seven percent. That is an

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Speaker 1: inversion of eighty three basis points. It's five twelve on

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Speaker 1: Wall Street. This is Bloomberg Daybreak, and we want to

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Speaker 1: turn out to what's happening in China and the optimism

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Speaker 1: we're seeing in markets there, with even more signs that

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Speaker 1: the government in Beijing is putting COVID zero in the past.

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Speaker 1: We're joined now live from Hong Kong by Bloomberg's Rebecca

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Speaker 1: Chung Wilkins. Rebecca, it's good to have you back with

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Speaker 1: us this morning. I guess the latest we're hearing from

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Speaker 1: top health officials in China is a warning about potentially

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Speaker 1: the vast majority of the country getting infected. It sounds

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Speaker 1: like a pretty significant, at least rhetorical change from what

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Speaker 1: we've been hearing from the Chinese government in the past. Absolutely,

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Speaker 1: it's a very very significant shift, and it's really the

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Speaker 1: first time that we've seen very high level officials in

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Speaker 1: this case that a former deputy chief of China's CDC

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Speaker 1: talking about the potentials of RESTful ramifications and and his

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Speaker 1: estimates are quite strikingly high. So He's saying, just in

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Speaker 1: the first wave of infections, which essentially sort of we

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Speaker 1: are entering right now, about six percent of the population

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Speaker 1: is going to be infected with some variant of COVID.

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Speaker 1: And just to put that into context, um in the

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Speaker 1: US that that the estimate is currently for all of

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Speaker 1: the waves is estimated around fifty So it is very,

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Speaker 1: very high. And it really does underscore the challenge for

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Speaker 1: China here, which is whether or not it's health care

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Speaker 1: system can really support the spread of the virus so

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Speaker 1: quickly through its population. Well, what could this new stance

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Speaker 1: potentially mean for China's economy. I mean, we're getting some

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Speaker 1: pretty strong warnings from some of the biggest firms on

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Speaker 1: Wall Street about what a move away from COVID zero

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Speaker 1: could mean in terms of the potential for you know,

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Speaker 1: temporary shutdowns of businesses that sort of thing. Yes, indeed,

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Speaker 1: I mean disruption from COVID outbreak, particularly knockdowns. We already

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Speaker 1: sort of soared through the very weak import export data,

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Speaker 1: both of which was was weaker than expect did UM

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Speaker 1: and and that really is going to continue longer term accord,

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Speaker 1: The hope is that it will offset the sort of

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Speaker 1: longer consequences of COVID and HATS ex center which it

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Speaker 1: will be weighed on the Chinese economy, particularly on consumer

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Speaker 1: demand and production as well. Um the one sort of

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Speaker 1: bright spot here is that if China does effectively move

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Speaker 1: has a sort of styy need production, when that hit

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Speaker 1: certain factories that could actually eventually sort of lead to

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Speaker 1: us sustained um sustained level of production and level out,

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Speaker 1: which we haven't really seen China trying to do at

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Speaker 1: a sort of countrywide level so far. Notwithstanding the macroeconomic

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Speaker 1: potential here, it was really interesting overnight to see the

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Speaker 1: reaction in the market, particularly with the Hang Sing in

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Speaker 1: Hong Kong jumping three point four per cent. Guess that's

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Speaker 1: related as well to some restrictions being used in the

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Speaker 1: city right, yes, indeed, so Hong Kong. Although most of

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Speaker 1: the restrictions can be lifted, we still have a masked

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Speaker 1: mandate both indoors and outdoors. So there is this speculation

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Speaker 1: local media as reported citing one one source, that we

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Speaker 1: may be seeing a lifting of the mask mandates outside

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Speaker 1: and some of the testing regulations may be lifted, but

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Speaker 1: there's still quite rigorous testing when you re enter Hong Kong.

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Speaker 1: Um there's still mandatory testing when you arrived, for example,

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Speaker 1: and you have to continue to go to these centers

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Speaker 1: to test. So that is how driving these moves. I

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Speaker 1: will say that as much as we're seeing kind of

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Speaker 1: Chinese assets in Hong Kong assets rippling of boring, they

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Speaker 1: tend to be trading on the rumors. So we're having

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Speaker 1: rumors of ripping through the market that this is going

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Speaker 1: to be listed or that's going to be lifted, and

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Speaker 1: then when we actually see the announcement, it's somehow not

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Speaker 1: quite meeting those expectations, so then we saw a bit

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Speaker 1: of a pull back in the sell off. So that's

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Speaker 1: so far has sort of been the characteristics of trading

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Speaker 1: over the last couple of days, I'd say, But in

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Speaker 1: terms of the announcements that we're hearing from the Chinese

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Speaker 1: mainland and the warnings from the health officials here, I

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Speaker 1: mean that sort of highlights how far behind I think

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Speaker 1: China is in terms of the way they're going about

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Speaker 1: this virus compared to the rest of the world, which

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Speaker 1: has been warning their populations about the potential for people

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Speaker 1: being infected. Majorities being infected for quite some time. Yeah,

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Speaker 1: isn't it remarkable? I mean, it is the thing that

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Speaker 1: always comes up when I when I talk to people

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Speaker 1: or even you know, this year was the first year

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Speaker 1: I visited overseas in two years after really strict quarantine

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Speaker 1: measures in Hong Kong, and it's such a different reality

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Speaker 1: that people are living in, particularly in mainland China, and

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Speaker 1: whether it has been such stringent restrictions on daily life.

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Speaker 1: It was just a few months ago that Shanghai City

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Speaker 1: twenty six million would locked down for really two months

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Speaker 1: and sometimes for longer for some people. So you know,

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Speaker 1: the sort of speak to some of that frustration we

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Speaker 1: saw with the protest, where a lot of visit of

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Speaker 1: anger over these policies have bubbled over, and not just

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Speaker 1: sort of in Beijing or Shanghai, but really in these

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Speaker 1: sort of major cities across China. So it is there

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Speaker 1: is this also a social unrest element where that China

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Speaker 1: is a lengthy, protracted experience of COVID restriction measures is

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Speaker 1: now starting also to weigh on morale. All right, Rebecca

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Speaker 1: Chung Wilkins with us live from Hong Kong from Bloomberg News.

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Speaker 1: Thank you, as always for keeping US up to date

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Speaker 1: on what's happening in China. Of course, we continue to

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Speaker 1: watch the world's second largest economy very closely in the

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Speaker 1: implications of what their China or what their COVID stance

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Speaker 1: could mean, not just for the domestic economy in China,

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Speaker 1: but more broadly around the world. Looking ahead to the

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Speaker 1: market open this morning, SMP futures are up three points now,

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Speaker 1: Future is down one now and DASTACK futures are higher

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Speaker 1: by nineteen points, so pretty much little changed across the board.

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Speaker 1: You're listening to Bloomberg Daybreak, markets, headlines and breaking news

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Speaker 1: twenty four hours a day at Bloomberg dot Com, the

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Speaker 1: Bloomberg Business Land, at Bloomberg Victap. This is a Bloomberg

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Speaker 1: Business Flash and I'm Karen Moscow. US dot Index futures

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Speaker 1: are higher this morning. European equities meanwhile, they're stending up

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Speaker 1: four days slide is optimism over a potential downshift in

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Speaker 1: Federal reserve rate hikes deflates in the face of economic headwinds.

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Speaker 1: Who check the markets all day long here at Bloomberg

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Speaker 1: Radio and U S and P futures, they're up about

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Speaker 1: three points, up about a tenth of upper cent. Dow

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Speaker 1: futures are little changed, and NASDAC futures up two tenths

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Speaker 1: per cent or nineteen points ten. Your treasury down eight

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Speaker 1: thirty seconds. You have three point four or four percent.

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Speaker 1: They yield on the two year four point to seven percent,

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Speaker 1: And I'm ex screwed. Oil is up one percent or

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Speaker 1: seventy one cents at seventy two seventies three cents of barrel.

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Speaker 1: And that's a Bloomberg business flash. Now here's Michael Barr

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Speaker 1: with Moore on what's going on around the world. Michael,

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Speaker 1: good morning, Good morning Karen. At least two more classified

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Speaker 1: documents have been found in possession of former President Donald Trump.

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Speaker 1: His lawyers say they discovered the material while searching a

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Speaker 1: storage unit in West Palm Beach, Florida. The House is

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Speaker 1: set to take a final vote on protections for same

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Speaker 1: sex marriages. Today's vote will send the legislation to President

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Speaker 1: Joe Biden. In the NBA, the Nets, Knicks and Celtics

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Speaker 1: were winners, the Wizards and Warriors lost. In the NHL,

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Speaker 1: the Rangers, Bruins and Capitals All one Global News twenty

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Speaker 1: four hours a day on air and on Bloomberg Quicktake

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Speaker 1: powered by more than twenty seven under journalists and analysts

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Speaker 1: more than a hundred twenty countries. Michael Barr and this

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Speaker 1: is Bloomberg. Nathan. Thanks Michael. It's five three on Wall Street.

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Speaker 1: I'm Nathan Hagar. This is Bloomberg Daybreak and we're watching

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Speaker 1: shares of biopharmaceutical company Prometheus Biosciences this morning. They're up

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Speaker 1: about six percent in the pre market that they surged

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Speaker 1: yesterday by an enter day record of more than two

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Speaker 1: hundred percent. That's after the company announced two midstage studies

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Speaker 1: and it's a experimental drug for inflammatory bowel disease. CEO

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Speaker 1: Mark McKenna joined Paul Sweeney and Matt Miller on Bloomberg

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Speaker 1: Radio yesterday to discuss the news. Let's listen to that conversation. Now,

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Speaker 1: what a story. Talk to us first about the breakthrough.

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Speaker 1: Today is a momentous day for patients who are suffering

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Speaker 1: from IBD. This is a chronic disease where they wax

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Speaker 1: in wayne to switching from drug to drug trying to

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Speaker 1: find relief, and the upens this point. Most of the

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Speaker 1: drugs in the category only provide ten to remission um.

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Speaker 1: So we can do better for these patients and today,

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Speaker 1: the data that we showcased was um uh you know,

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Speaker 1: set a new high water march four drugs in this

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Speaker 1: category across efficacy and safety. Can you give us the

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Speaker 1: layman's version of how it works? There's three ways to

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Speaker 1: to bring innovation to this category. Number one is UM

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Speaker 1: novel targets where there's actually a genetic assot ciation to

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Speaker 1: the disease. UM. You know, you everyone on the audience

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Speaker 1: probably understand how important this is in other disease areas

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Speaker 1: like oncology. UM. Number two with precision medicine being able

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Speaker 1: to use the diagnostic to identify the right patient for

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Speaker 1: the right drug. And the third is rational combinations being

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Speaker 1: able like in oncology, being able to combine two different

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Speaker 1: agents to get superior efficacy. What we showcase today is

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Speaker 1: that on a mono therapy so meaning that the TL

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Speaker 1: want a drug by itself, showed superior clinical remission the

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Speaker 1: current UM standard of care UM most analysts were looking

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Speaker 1: at TENDI fifteen percent clinical remission and we deliver twenty.

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Speaker 1: This is a global for super control trial. And what

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Speaker 1: we're doing is we're taking the playbook out of oncology

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Speaker 1: and we have a diagnostic. So in addition to having

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Speaker 1: a really great drug, we have a diagnostic that helps

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Speaker 1: predict who's likely to respond to this drug. So you

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Speaker 1: can just imagine. Um, you know, healthcare costs is always

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Speaker 1: a focus, right, how do you actually bring down cost

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Speaker 1: while to getting best the best patient care. So with

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Speaker 1: with data in hand, we are moving forward to engage

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Speaker 1: with the FDA and other regulatory bodies outside the US

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Speaker 1: and we'll initiate phase three studies UM and next year. UM.

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Speaker 1: So we need to conduct phase three studies and you

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Speaker 1: see in crowns and we look, we look to activate

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Speaker 1: those next year. What's the next step for a company

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Speaker 1: like yours when you have this kind of breakthrough time

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Speaker 1: to market, path to market? How does that all work

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Speaker 1: for a company like yours? Yeah, so we haven't guided

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Speaker 1: this specific time to market, but what I would say

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Speaker 1: is that most analysts have us UH commercializing the drug

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Speaker 1: in the second half of twenty six the first half

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Speaker 1: of twenty seven. UM. Look, we we set all along

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Speaker 1: UM that we have two objectives. Number one is we

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Speaker 1: want to get these drugs to patients as fast as possible. UM.

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Speaker 1: We believe that we are the potentially the best hope

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Speaker 1: to bring meaningful clinical omission to these patients. Number two

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Speaker 1: is we want to maximize shareholder value, and we have

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Speaker 1: a a very strong balance sheet. We are well positioned

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Speaker 1: to be able to execute on the phase three independently.

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Speaker 1: With this data in hand, it really sets us apart

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Speaker 1: from other t O one A programs as well as

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Speaker 1: the rest of quite frankly, the rest of the class.

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Speaker 1: And that was Prometheus Biosciences CEO Mark McKennis speaking with

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Speaker 1: Bloomberg's Paul Sweeney and Matt Miller. You can catch that

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Speaker 1: full interview on the tape podcast as well as on

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Speaker 1: Bloomberg dot com and always on the Bloomberg terminal. Again.

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Speaker 1: Shares of Prometheus Biosciences up six percent in early trading.

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Speaker 1: Bloomberg Daybreak is brought to you by SEI. Built on

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Speaker 1: managers a comprehensive and flexible operations outsourcing platform. Go to

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00:23:44,920 --> 00:23:49,239
Speaker 1: se i C dot com slash managers straight ahead. Here

432
00:23:49,240 --> 00:23:51,880
Speaker 1: on Bloomberg Daybreak, we'll get you this morning's top stories,

433
00:23:51,920 --> 00:23:54,879
Speaker 1: plus your local headlines and a check of markets. But

434
00:23:55,040 --> 00:23:59,120
Speaker 1: first let's bring in Bloomberg meteorologist Bob Carolin for Rob

435
00:23:59,160 --> 00:24:01,120
Speaker 1: Carolyn for a look at the high pressure is pushed

436
00:24:01,119 --> 00:24:03,200
Speaker 1: close enough to the area that will turn partly sunny.

437
00:24:03,240 --> 00:24:05,960
Speaker 1: Today will find temperatures between fifty and fifty five. It

438
00:24:05,960 --> 00:24:08,040
Speaker 1: will be partly cloudy close to thirty five over night

439
00:24:08,080 --> 00:24:10,920
Speaker 1: twenties in the suburbs. Tomorrow partial sun of locol or

440
00:24:11,000 --> 00:24:13,760
Speaker 1: high forty five clouds, a few peaks of sunshine on

441
00:24:13,840 --> 00:24:16,080
Speaker 1: Saturday for the clouds went out, hies near forty five

442
00:24:16,440 --> 00:24:19,640
Speaker 1: and rain or wet snow possible times on Sunday forty five.

443
00:24:20,200 --> 00:24:23,640
Speaker 1: I'm Rob Carolyn with your weekend forecast on Bloomberg eleven

444
00:24:23,760 --> 00:24:30,840
Speaker 1: three oh broadcasting live from the Bloomberg Interactive Broker's studio

445
00:24:30,960 --> 00:24:34,119
Speaker 1: in New York. Bloomberg E living free to Washington, d C,

446
00:24:34,320 --> 00:24:37,800
Speaker 1: Bloomberg nine nine one to Boston, Bloomberg one O six

447
00:24:37,840 --> 00:24:41,040
Speaker 1: one to San Francisco, Bloomberg N sixty to the country,

448
00:24:41,160 --> 00:24:44,359
Speaker 1: Sirius XM Chado one nineteen and around the globe the

449
00:24:44,359 --> 00:24:48,240
Speaker 1: Bloomberg Business app and Bloomberg Radio dot Com. This is

450
00:24:48,280 --> 00:24:57,320
Speaker 1: Bloomberg Daybreak. It's on Wall Street. Good Morning. I'm Nathan

451
00:24:57,320 --> 00:25:00,600
Speaker 1: Hagar and I'm Karen Moscow, and we're about four hours

452
00:25:00,640 --> 00:25:02,919
Speaker 1: away from the open of US trading. Let's get you

453
00:25:02,920 --> 00:25:04,199
Speaker 1: have to date on the news. You need to know

454
00:25:04,280 --> 00:25:07,040
Speaker 1: what this sour u s Dock index future is little

455
00:25:07,119 --> 00:25:10,240
Speaker 1: change to hire this morning. Stocks coming off five straight

456
00:25:10,359 --> 00:25:12,680
Speaker 1: days of losses and the spread between the two year

457
00:25:12,720 --> 00:25:15,439
Speaker 1: and ten year yields is the most inverted since the

458
00:25:15,520 --> 00:25:19,720
Speaker 1: nineties seventies. PGM Chief investment strategist in head of Global Bonds,

459
00:25:19,800 --> 00:25:23,719
Speaker 1: Robert Tipps says he sees moderate Arnie's risk on the horizon,

460
00:25:23,960 --> 00:25:27,880
Speaker 1: which is skewing the balance away from equities. Normally, you'd

461
00:25:27,880 --> 00:25:30,800
Speaker 1: have equity returns expected to be much higher than bonds.

462
00:25:30,840 --> 00:25:33,919
Speaker 1: The bonds have really been rerated here. The Fed is

463
00:25:33,920 --> 00:25:36,400
Speaker 1: going to need to be careful not to torpedo the economy,

464
00:25:36,640 --> 00:25:40,200
Speaker 1: but they know that. PGMs Robert Tipps says he expects

465
00:25:40,200 --> 00:25:42,800
Speaker 1: the bond market to continue performing well as the Fed

466
00:25:42,960 --> 00:25:45,600
Speaker 1: raises rates well in age overnight care in Hong Kong

467
00:25:45,680 --> 00:25:47,920
Speaker 1: was the top performer in the region. The Hang Sang

468
00:25:47,960 --> 00:25:50,600
Speaker 1: Game more than three percent in the session. That's after

469
00:25:50,680 --> 00:25:54,280
Speaker 1: local media reported Hong Kong's considering scrapping its outdoor mask

470
00:25:54,359 --> 00:25:57,520
Speaker 1: mandate and easing testing requirements. Well Nathan back here in

471
00:25:57,520 --> 00:26:00,200
Speaker 1: the US, Twitter and Tesla are back in the news.

472
00:26:00,280 --> 00:26:03,320
Speaker 1: Bankers for Elon Musk are considering providing the billionaire with

473
00:26:03,359 --> 00:26:06,879
Speaker 1: new margin loans Bloomberg. Steve Rappaport joins US Live with

474
00:26:07,040 --> 00:26:09,560
Speaker 1: more on that story, and good morning, Steve, Good morning,

475
00:26:09,600 --> 00:26:12,560
Speaker 1: Karen and Nathan. Margin loans backed by Tesla stock is

476
00:26:12,600 --> 00:26:14,800
Speaker 1: one option for banks to ease the high interest debt

477
00:26:14,800 --> 00:26:17,919
Speaker 1: Twitter took on when Musk acquired the company. Dwindling credit

478
00:26:17,960 --> 00:26:21,080
Speaker 1: markets combined with Musk's bumpy start as Twitter CEO, forced

479
00:26:21,080 --> 00:26:23,760
Speaker 1: bankers to cover the thirteen billion dollar debt with their

480
00:26:23,760 --> 00:26:26,960
Speaker 1: own cash, sources tell Bloomberg. Talks are focused on ways

481
00:26:26,960 --> 00:26:29,719
Speaker 1: to replace the three billion dollars of unsecured debt, on

482
00:26:29,720 --> 00:26:33,080
Speaker 1: which Twitter pays nearly twelve percent interest. Live in New York,

483
00:26:33,119 --> 00:26:35,840
Speaker 1: I'm Steve Rappaport, Bloomberg Day Break. All right, Steve, thank you.

484
00:26:35,880 --> 00:26:38,880
Speaker 1: Another corporate note this morning. Former Tharonos President and Chief

485
00:26:38,920 --> 00:26:42,639
Speaker 1: operating officer Remesh Sonny Baldwani has been sentenced to thirteen

486
00:26:42,720 --> 00:26:45,760
Speaker 1: years in present. It comes after the company's founder, Elizabeth

487
00:26:45,760 --> 00:26:48,800
Speaker 1: Holmes was sentenced to eleven years for fraud. Will turning

488
00:26:48,800 --> 00:26:51,719
Speaker 1: to another disgraced venture here Nathan f t X founder

489
00:26:51,760 --> 00:26:55,680
Speaker 1: Sam Bankman freed maybe appearing on Capitol Hill next week.

490
00:26:55,720 --> 00:27:00,000
Speaker 1: Republican Arkansas Representative french Hill says having Sam Bankman free

491
00:27:00,040 --> 00:27:03,480
Speaker 1: to speak with lawmakers is a priority for the next Congress.

492
00:27:03,720 --> 00:27:07,360
Speaker 1: Patrick McKendry, the ranking Republican, and Maxine Waters, the chair

493
00:27:07,400 --> 00:27:10,280
Speaker 1: of the committee. They want him here personally. If he's

494
00:27:10,280 --> 00:27:14,119
Speaker 1: got time to interview a deal book with Andrew Rawls

495
00:27:14,160 --> 00:27:17,679
Speaker 1: Sorkin and make all these Twitter appearances, he can appear

496
00:27:17,720 --> 00:27:19,960
Speaker 1: before our committee. And we'll bring you more of our

497
00:27:20,000 --> 00:27:23,600
Speaker 1: interview with Arkansas Congressman french Hill later in the program.

498
00:27:23,640 --> 00:27:26,639
Speaker 1: And again. Futures this morning they are high er s

499
00:27:26,680 --> 00:27:28,560
Speaker 1: and p future is a tenth of a percent of

500
00:27:28,600 --> 00:27:31,680
Speaker 1: five points this morning down. Futures that will change. Nasdaq

501
00:27:31,800 --> 00:27:34,800
Speaker 1: futures have a quarter percent, or about twenty seven points.

502
00:27:35,040 --> 00:27:37,119
Speaker 1: The decks in Germany's down the most two tenths of

503
00:27:37,160 --> 00:27:40,200
Speaker 1: a percent ten Your treasury down seven thirty seconds, you know,

504
00:27:40,240 --> 00:27:42,359
Speaker 1: three point four or four percent, and they yield on

505
00:27:42,400 --> 00:27:45,320
Speaker 1: the two year four point to seven percent. Nine X

506
00:27:45,359 --> 00:27:47,440
Speaker 1: Screwed oil is a three quarters of a percent of

507
00:27:47,480 --> 00:27:50,080
Speaker 1: fifty four cents at seventy two fifty five cents of

508
00:27:50,160 --> 00:27:53,080
Speaker 1: barrel and comex go down two tenths of a percent.

509
00:27:53,440 --> 00:27:56,000
Speaker 1: Straight ahead, we have your latest local headlines plus the

510
00:27:56,119 --> 00:28:04,480
Speaker 1: check of sports, and this is Bloomberg. I'm scaring one

511
00:28:04,480 --> 00:28:06,439
Speaker 1: on Wall Street. Let's bring in Michael bar for some

512
00:28:06,480 --> 00:28:08,520
Speaker 1: of those local headlines in New York and what's going

513
00:28:08,560 --> 00:28:11,480
Speaker 1: on around the world. Michael Nathan. New York Governor Kathy

514
00:28:11,520 --> 00:28:14,359
Speaker 1: hokels as complacency is our enemy when it comes to

515
00:28:14,400 --> 00:28:18,280
Speaker 1: fighting COVID, the flu, and RSV. Step up this time,

516
00:28:18,320 --> 00:28:20,960
Speaker 1: Step up in December and January, get us through February,

517
00:28:20,960 --> 00:28:22,879
Speaker 1: Get us through the worst times by just you can

518
00:28:22,960 --> 00:28:26,479
Speaker 1: kind of see somebody that's in a vulnerable situation. Just

519
00:28:26,600 --> 00:28:29,639
Speaker 1: get tested. Governor HOCl says New York will be ready

520
00:28:29,680 --> 00:28:33,560
Speaker 1: with testing, vaccines and ventilators. New Jersey Governor Phil Murphy

521
00:28:33,600 --> 00:28:36,560
Speaker 1: is recovering at home after his office said that he

522
00:28:36,680 --> 00:28:40,000
Speaker 1: had minor surgery yesterday. The governor's office would not say

523
00:28:40,000 --> 00:28:42,600
Speaker 1: what the procedure was, except that the surgery was not

524
00:28:42,720 --> 00:28:47,000
Speaker 1: related to a cancers tumor he had removed. In Mayor

525
00:28:47,120 --> 00:28:50,720
Speaker 1: Eric Adams says the system to provide affordable housing is broken.

526
00:28:51,000 --> 00:28:53,680
Speaker 1: Not just in New York City but all over. Adams

527
00:28:53,680 --> 00:28:56,480
Speaker 1: spoke at a faith based summit in New York and

528
00:28:56,520 --> 00:28:58,600
Speaker 1: all we do is kick the can down the road.

529
00:28:59,520 --> 00:29:01,960
Speaker 1: We know at the beginning of the year we want

530
00:29:01,960 --> 00:29:06,200
Speaker 1: to fail his a large number of people, and they're

531
00:29:06,240 --> 00:29:09,240
Speaker 1: primarily black and brown and immigrants, and we know it.

532
00:29:09,600 --> 00:29:13,280
Speaker 1: A frustrated Adams says, we spend billions of taxpayer dollars

533
00:29:13,360 --> 00:29:17,000
Speaker 1: for the broken issues we created. Months after the FBI

534
00:29:17,120 --> 00:29:21,240
Speaker 1: seized records marked classified from Mara Lago, more sensitive documents

535
00:29:21,280 --> 00:29:23,920
Speaker 1: is surfacing, this time in a storage unit said to

536
00:29:23,920 --> 00:29:27,520
Speaker 1: be used by former President Trump in Florida. Loyola Law

537
00:29:27,640 --> 00:29:31,880
Speaker 1: University professor Lorie Levinson it is clear that the judges

538
00:29:32,280 --> 00:29:36,120
Speaker 1: have gone to Trump and his lawyers and said search again,

539
00:29:36,640 --> 00:29:40,680
Speaker 1: look harder because National Archives does believe that there are

540
00:29:40,680 --> 00:29:44,840
Speaker 1: more documents out there. Searches were reportedly conducted around Thanksgiving.

541
00:29:45,120 --> 00:29:50,240
Speaker 1: The House Ethics Committee is investigating Democratic Representative Alexandria Ocassio Cortes.

542
00:29:50,360 --> 00:29:53,120
Speaker 1: They did not say, though, for what alleged, if any,

543
00:29:53,200 --> 00:29:56,560
Speaker 1: violations of Congressional rules. Globally used twenty four hours a

544
00:29:56,640 --> 00:29:58,920
Speaker 1: day on air and on Bloomberg Quick Take powered by

545
00:29:58,920 --> 00:30:01,840
Speaker 1: more than journalist and analysts in more than a hundred

546
00:30:01,840 --> 00:30:05,000
Speaker 1: twenty countries. I'm Michael Barrt. This is Bloomberg, Nathan. Thanks Michael,

547
00:30:09,640 --> 00:30:11,560
Speaker 1: by thirty three on Wall Street Time for the Bloomberg

548
00:30:11,600 --> 00:30:13,440
Speaker 1: Sports Update, brought to you by Try State. How do

549
00:30:13,440 --> 00:30:15,680
Speaker 1: you Here's John Stas show. All right avon. Yankee fans

550
00:30:15,720 --> 00:30:18,400
Speaker 1: obviously relieve with the news of Aaron Judges staying in

551
00:30:18,400 --> 00:30:20,080
Speaker 1: New York, and now they want to know who might

552
00:30:20,160 --> 00:30:22,600
Speaker 1: the Yanks add. They need a left fielder where it

553
00:30:22,680 --> 00:30:24,840
Speaker 1: is that might be the Pirates, Brian Reynolds or a

554
00:30:24,880 --> 00:30:27,520
Speaker 1: return of Andrew Benn and Tendy. They'd like to add

555
00:30:27,520 --> 00:30:29,880
Speaker 1: a starting pitcher. Carlos Rodon has been mentioned, but he's

556
00:30:29,920 --> 00:30:32,840
Speaker 1: looking for a lot. Six years, hundred eighty million. The

557
00:30:32,920 --> 00:30:36,400
Speaker 1: money being thrown around is stagger and much was made

558
00:30:36,400 --> 00:30:39,600
Speaker 1: of Judge being the poster boy for betting on yourself

559
00:30:39,640 --> 00:30:41,800
Speaker 1: by turning the Yanks down last spring. He ended up

560
00:30:41,800 --> 00:30:44,280
Speaker 1: with almost a hundred fifty million dollars. More, how about

561
00:30:44,360 --> 00:30:48,160
Speaker 1: Xander Bogart's The Red Sox last spring offered him six years,

562
00:30:48,200 --> 00:30:50,760
Speaker 1: a hundred and twenty million, and like Judge, he passed

563
00:30:51,040 --> 00:30:53,680
Speaker 1: had a strong season. Boguards signed last night with San

564
00:30:53,720 --> 00:30:58,040
Speaker 1: Diego eleven years, two hundred and eighty million. Red Sox

565
00:30:58,120 --> 00:31:00,440
Speaker 1: lost Boguards, but they signed veteran to lead or Kenley

566
00:31:00,520 --> 00:31:04,840
Speaker 1: Jansen and Japanese outfielder Massa Taka Yoshida. The Mets signed

567
00:31:04,880 --> 00:31:08,240
Speaker 1: veteran pitcher pose A Kintana for two years. He's about

568
00:31:08,280 --> 00:31:11,360
Speaker 1: to turn thirty four. Last season, Quintana had the lowest

569
00:31:11,400 --> 00:31:14,280
Speaker 1: home run aloud rate in the National League. Nix and

570
00:31:14,360 --> 00:31:17,040
Speaker 1: Nets both one at home. Knix over Atlanta one thirteen

571
00:31:17,040 --> 00:31:19,360
Speaker 1: to eighty nine. They held the Hawks to thirty eight

572
00:31:19,400 --> 00:31:23,080
Speaker 1: percent shooting for Julius Randall thirty four points seventeen rebounds.

573
00:31:23,400 --> 00:31:25,640
Speaker 1: The Nets got thirty three from Kyrie Irving and twenty

574
00:31:25,720 --> 00:31:29,440
Speaker 1: nine for Kevin Duran. They beat Charlotte one sixteen Rangers

575
00:31:29,440 --> 00:31:32,360
Speaker 1: in Vegas one one third period. Rangers scored four times

576
00:31:32,440 --> 00:31:34,360
Speaker 1: because the Banda Dad the first and last, both on

577
00:31:34,360 --> 00:31:36,760
Speaker 1: the power play, three goals in a span of under

578
00:31:36,800 --> 00:31:39,360
Speaker 1: two minutes. The Rangers won five to one. St. John's

579
00:31:39,360 --> 00:31:43,600
Speaker 1: beat De Paul eight six sixty seven. John Stashower, Bloomberg Sports,

580
00:31:43,680 --> 00:31:46,240
Speaker 1: Nathan all Right, John, thank you, Bloomberg Sports. Is brought

581
00:31:46,240 --> 00:31:48,320
Speaker 1: to you by Audie. Don't let someone else drive off

582
00:31:48,360 --> 00:31:51,600
Speaker 1: in the Audi model you've always wanted. Visit your local

583
00:31:51,720 --> 00:31:54,440
Speaker 1: Try State Audie dealer to get behind the wheel of

584
00:31:54,520 --> 00:31:59,720
Speaker 1: yours today, or visit Autie Offers dot com for more information.

585
00:32:01,640 --> 00:32:04,160
Speaker 1: It's five on Wall Street time for the Tri State

586
00:32:04,200 --> 00:32:08,440
Speaker 1: Business Report with Bloomberg's ed Corey Hudson Yards, Developer Related

587
00:32:08,480 --> 00:32:12,320
Speaker 1: Companies is proposing a resort with guest rooms. The plan

588
00:32:12,480 --> 00:32:14,080
Speaker 1: is part of a bid for one of New York's

589
00:32:14,120 --> 00:32:18,600
Speaker 1: gaming licenses. Plans also call for about twenty restaurants, a nightclub, theater,

590
00:32:18,680 --> 00:32:21,160
Speaker 1: and casino with the second phase of the project on

591
00:32:21,240 --> 00:32:25,240
Speaker 1: Manhattan's far West Side. Manhattan apartment rants went up a

592
00:32:25,280 --> 00:32:27,920
Speaker 1: little in November after three months of declines, but the

593
00:32:28,000 --> 00:32:31,000
Speaker 1: market is not returning to the hyper competitive heights of

594
00:32:31,040 --> 00:32:34,520
Speaker 1: the summer. Median rent rose about two percent from October

595
00:32:34,600 --> 00:32:38,000
Speaker 1: to four thousand and ninety five dollars, third highest level

596
00:32:38,040 --> 00:32:41,360
Speaker 1: ever recorded by Biller, Samuel and Douglas Eleman. Real Estate

597
00:32:41,920 --> 00:32:46,479
Speaker 1: India's Tata Consultancy is accused of bias against workers who

598
00:32:46,520 --> 00:32:50,040
Speaker 1: were not South Asian or are US born. The lawsuit

599
00:32:50,120 --> 00:32:52,440
Speaker 1: was filed Wednesday in the U S district cord for

600
00:32:52,480 --> 00:32:56,040
Speaker 1: the District of New Jersey by a former Tata employee.

601
00:32:56,360 --> 00:33:00,320
Speaker 1: It's similar to prior cases against the I T Services Giant.

602
00:33:01,040 --> 00:33:04,240
Speaker 1: Back you, Bloomberg Tri State Business Report. I did, Corey

603
00:33:04,440 --> 00:33:07,680
Speaker 1: alright ed? Thank you now for update on small businesses.

604
00:33:07,880 --> 00:33:11,000
Speaker 1: Let's go to Bloomberg. Slee Sa Mateo with the Bloomberg

605
00:33:11,040 --> 00:33:14,400
Speaker 1: Small Business Report, brought to you by Dell. I'm Lisa Mateo.

606
00:33:14,760 --> 00:33:18,760
Speaker 1: Some relief for businesses affected by natural disasters. The US

607
00:33:18,840 --> 00:33:22,200
Speaker 1: Small Business Administration says it will waive the interest rate

608
00:33:22,280 --> 00:33:25,320
Speaker 1: for the first year on new disaster loans and extend

609
00:33:25,360 --> 00:33:29,440
Speaker 1: the initial payment deferment period automatically to twelve months. That

610
00:33:29,520 --> 00:33:33,000
Speaker 1: change covers all approved disaster loans declared on or after

611
00:33:33,120 --> 00:33:39,920
Speaker 1: September one through September. Hiring is on the rise. The

612
00:33:40,000 --> 00:33:43,960
Speaker 1: Sea Biz Small Business Employment Index increased just over half

613
00:33:43,960 --> 00:33:47,000
Speaker 1: a percent in November, reversing a downward trend for the

614
00:33:47,040 --> 00:33:50,240
Speaker 1: previous three months. The company credits the growth to strength

615
00:33:50,280 --> 00:33:54,120
Speaker 1: and consumer spending and small business owners in Florida are

616
00:33:54,200 --> 00:33:57,920
Speaker 1: looking forward to the Formula one Grand Prix and Miami Gardens.

617
00:33:58,160 --> 00:34:00,640
Speaker 1: Last year, the event proved a helpful boost to their

618
00:34:00,640 --> 00:34:02,800
Speaker 1: profits as it drew in more than two hundred and

619
00:34:02,840 --> 00:34:06,080
Speaker 1: forty thousand visitors this year. It will take place at

620
00:34:06,080 --> 00:34:09,240
Speaker 1: hard Rock Stadium in May. And that's the Bloomberg Small

621
00:34:09,239 --> 00:34:12,560
Speaker 1: Business Report. Okay, Lisa, thank you for that. Let's take

622
00:34:12,600 --> 00:34:16,360
Speaker 1: a look at these markets now. Futures kind of quiet

623
00:34:16,480 --> 00:34:19,200
Speaker 1: this morning. The action remains in the bond space, with

624
00:34:19,400 --> 00:34:22,600
Speaker 1: SMP futures right now up five points, Stown futures up eleven.

625
00:34:22,640 --> 00:34:26,040
Speaker 1: That's little changed. In NASDAC futures getting just a little

626
00:34:26,080 --> 00:34:28,200
Speaker 1: bit of ground right now, they're up twenty seven points.

627
00:34:28,200 --> 00:34:31,000
Speaker 1: That's a gain of almost a quarter percent. Tenure Treasury

628
00:34:31,040 --> 00:34:33,719
Speaker 1: is down eight thirty seconds. The three point for four

629
00:34:33,760 --> 00:34:36,359
Speaker 1: percent on the benchmark yield on the two year four

630
00:34:36,400 --> 00:34:40,000
Speaker 1: point to seven percent two ten spread inverted by eighty

631
00:34:40,040 --> 00:34:44,040
Speaker 1: three and a half basis points. Name Excrudes up eight

632
00:34:44,040 --> 00:34:46,400
Speaker 1: tenths percent at seventy two fifty six of barrel and

633
00:34:46,440 --> 00:34:51,600
Speaker 1: Comics Gold is down almost two tenths percent at seventy announced.

634
00:34:51,600 --> 00:34:54,160
Speaker 1: We'll get a fuller look at this market next. S D. Dwack,

635
00:34:54,280 --> 00:34:57,799
Speaker 1: the chief investment officer at Flow Bank, joins us. Next

636
00:34:57,840 --> 00:35:04,680
Speaker 1: to this is Bloomberg Markets headlines and breaking news. Twenty

637
00:35:04,680 --> 00:35:07,520
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg

638
00:35:07,520 --> 00:35:11,120
Speaker 1: Business Outland at Bloomberg Quick Take, this is a Bloomberg

639
00:35:11,200 --> 00:35:19,920
Speaker 1: business lash and I'm Karen Moscow and us on the index.

640
00:35:20,000 --> 00:35:23,840
Speaker 1: Futures are higher this morning. European equities, meanwhile, are extending

641
00:35:23,840 --> 00:35:27,320
Speaker 1: a four days slide as optimism over a potential downshift

642
00:35:27,320 --> 00:35:29,719
Speaker 1: in federal reserve rate hikes deflates in the face of

643
00:35:29,760 --> 00:35:32,719
Speaker 1: some economic headwinds. You check the markets all day long

644
00:35:32,760 --> 00:35:35,879
Speaker 1: on Bloomberg Radio. Right now, SMP futures are up four

645
00:35:35,920 --> 00:35:38,239
Speaker 1: points at the tenth of upper cent. DAL futures are

646
00:35:38,239 --> 00:35:40,920
Speaker 1: a little changed. NASDACK future is up two tenths per

647
00:35:40,920 --> 00:35:43,840
Speaker 1: center twenty five points. The decks in Germany's down almost

648
00:35:43,880 --> 00:35:46,480
Speaker 1: two tenths of upper sent ten. Your treasury down eight

649
00:35:46,480 --> 00:35:48,799
Speaker 1: thirty seconds. He'll three point four or four percent. They

650
00:35:48,840 --> 00:35:51,440
Speaker 1: yield on the two year four point to seven percent.

651
00:35:51,880 --> 00:35:54,120
Speaker 1: Nimex screwed oil is up nine tenths per cent, or

652
00:35:54,160 --> 00:35:56,640
Speaker 1: sixty four cents at seventy two dollars sixty four cents

653
00:35:56,640 --> 00:35:59,160
Speaker 1: of barrel. Comex school down two tenths per cent or

654
00:35:59,200 --> 00:36:02,960
Speaker 1: three dollars. That's ounce. The euro one point oh five

655
00:36:03,040 --> 00:36:06,280
Speaker 1: oh two against the dollar. British found one point one zero,

656
00:36:06,560 --> 00:36:09,040
Speaker 1: the unis at one thirty six point nine zero, and

657
00:36:09,080 --> 00:36:13,280
Speaker 1: Bitcoin it's little changed at sixteen thousand, eight hundred dollars.

658
00:36:13,280 --> 00:36:15,760
Speaker 1: And that's a Bloomberg business flash. Now here's Michael Barr

659
00:36:15,840 --> 00:36:18,640
Speaker 1: with more on what's going on around the world. Michael Karen,

660
00:36:18,680 --> 00:36:20,520
Speaker 1: thank you very much. The House is set to take

661
00:36:20,560 --> 00:36:23,960
Speaker 1: a final vote on pretensions for same sex marriages. Today's

662
00:36:24,040 --> 00:36:27,840
Speaker 1: vote will send the legislation to President Joe Biden. Members

663
00:36:27,960 --> 00:36:31,640
Speaker 1: of former President Donald Trump's team notified the FBI they

664
00:36:31,680 --> 00:36:35,440
Speaker 1: had found additional documents marked it's classified in a Florida's

665
00:36:35,440 --> 00:36:38,799
Speaker 1: storage facility near Palm Beach. The chair of the House

666
00:36:38,800 --> 00:36:42,560
Speaker 1: committee investigating last year's January six attack on the Capitol

667
00:36:42,760 --> 00:36:45,759
Speaker 1: says the panel's report will be released December twenty one.

668
00:36:46,200 --> 00:36:49,000
Speaker 1: In the NBA, the Nets, Knicks and Celtics were winners,

669
00:36:49,000 --> 00:36:51,960
Speaker 1: the Wizards and Warriors lost. In the NHL, the Rangers,

670
00:36:52,000 --> 00:36:55,360
Speaker 1: Bruins and Capitals all one Global News twenty four hours

671
00:36:55,360 --> 00:36:58,239
Speaker 1: a day on air and on Bloomberg Quicktake, powered by

672
00:36:58,280 --> 00:37:00,759
Speaker 1: more than twenty seven hundred journal fin analysts, more than

673
00:37:01,120 --> 00:37:05,040
Speaker 1: twenty countries Michael Barrett. This is Bloomberg. Nick. Okay, Michael. Thanks.

674
00:37:05,040 --> 00:37:07,799
Speaker 1: It's five forty two on Wall Street. This is Bloomberg

675
00:37:07,880 --> 00:37:10,560
Speaker 1: day Break. Good morning. I'm Nathan Hagar along with Karen Moscow.

676
00:37:10,800 --> 00:37:12,400
Speaker 1: Let's take a look at some of the other stories

677
00:37:12,440 --> 00:37:15,640
Speaker 1: making news this morning. After the epic collapse of f

678
00:37:15,760 --> 00:37:18,359
Speaker 1: t X, we are now learning the Crypto Exchange was

679
00:37:18,440 --> 00:37:23,040
Speaker 1: holding talks to sponsor English Premier League teams Manchester United

680
00:37:23,120 --> 00:37:26,920
Speaker 1: and Liverpool earlier this year. Let's get that story from

681
00:37:26,960 --> 00:37:31,920
Speaker 1: Bloomberg's Charlie Pellett. The discussions underscore the now bankrupt company's

682
00:37:31,960 --> 00:37:35,440
Speaker 1: ambitions to expand its global reach and its willingness to

683
00:37:35,480 --> 00:37:39,600
Speaker 1: spend significant sums of money to do so. Federal prosecutors

684
00:37:39,600 --> 00:37:43,560
Speaker 1: in Manhattan have begun investigating ft x's collapse, a decline

685
00:37:43,600 --> 00:37:47,960
Speaker 1: that included an unexplained eight billion dollar shortfall in funds,

686
00:37:48,320 --> 00:37:52,719
Speaker 1: and the US Justice Department's bankruptcy watchdog has called for

687
00:37:52,840 --> 00:37:56,640
Speaker 1: an independent probe. The sources say the numbers associated with

688
00:37:56,719 --> 00:37:59,800
Speaker 1: each of the potential multi year deals ranged from close

689
00:37:59,840 --> 00:38:03,680
Speaker 1: to one hundred million dollars to north of that. FDx

690
00:38:03,760 --> 00:38:08,200
Speaker 1: ultimately decided against sponsoring either team. In New York. Charlie

691
00:38:08,239 --> 00:38:10,880
Speaker 1: Pellette Bloomberg day Break. All right, Charlie, thanks well. On

692
00:38:10,880 --> 00:38:13,440
Speaker 1: the economic front, this morning, we get the latest reading

693
00:38:13,480 --> 00:38:16,200
Speaker 1: on the labor market, with the US weekly jobless claims

694
00:38:16,239 --> 00:38:18,759
Speaker 1: is at an eight thirty Wall Street time economists stay

695
00:38:18,760 --> 00:38:22,640
Speaker 1: claims probably edged higher last week businesses have started shrimming

696
00:38:22,680 --> 00:38:26,080
Speaker 1: payrolls and anticipation of an economic slowdown, and Bloomberg's Vinydale

697
00:38:26,160 --> 00:38:29,960
Speaker 1: Juda says more initial jobless claims retreated in the government's

698
00:38:30,000 --> 00:38:33,320
Speaker 1: prior weekly report, falling to two hundred twenty five thousand

699
00:38:33,360 --> 00:38:36,160
Speaker 1: from a three month high of two hundred forty one thousand.

700
00:38:36,360 --> 00:38:40,680
Speaker 1: Bloomberg Economics as layoffs aren't yet pervasive, but could accelerate,

701
00:38:40,680 --> 00:38:45,040
Speaker 1: pushing the unemployment rate to five percent by four In November,

702
00:38:45,040 --> 00:38:47,800
Speaker 1: the unemployment rate he steady at three point seven percent

703
00:38:47,800 --> 00:38:51,640
Speaker 1: and near a half century low. Judas Bloomberg day Break. Okay, Vinny,

704
00:38:51,719 --> 00:38:53,319
Speaker 1: thank you. Now let's get more on what could move

705
00:38:53,360 --> 00:38:55,879
Speaker 1: markets today. For that, we're joined live by s D. J. Wack,

706
00:38:55,960 --> 00:38:59,360
Speaker 1: the chief investment officer at Flow Bank. S D. Good morning.

707
00:38:59,400 --> 00:39:01,600
Speaker 1: I guess all out of the focus for folks like

708
00:39:01,680 --> 00:39:03,880
Speaker 1: you has to be on the data. We're seeing in

709
00:39:03,920 --> 00:39:07,880
Speaker 1: this economy, we've had signs of continued strength in the

710
00:39:07,960 --> 00:39:10,400
Speaker 1: labor market. Do you think that's going to hold up

711
00:39:11,160 --> 00:39:13,920
Speaker 1: with the claims that are due out later on this morning?

712
00:39:15,640 --> 00:39:19,040
Speaker 1: Good morning. Well, we've seen that the claims numbers have

713
00:39:19,239 --> 00:39:22,799
Speaker 1: held up quite well and have stayed much lower than

714
00:39:22,920 --> 00:39:25,440
Speaker 1: the probably than the FED would like to see. But

715
00:39:26,000 --> 00:39:30,120
Speaker 1: we're getting more and more anecdotal evidence that the labor

716
00:39:30,160 --> 00:39:33,520
Speaker 1: market is maybe not quite as tight as some of

717
00:39:33,520 --> 00:39:36,920
Speaker 1: those headline numbers make it seem. And I think that's

718
00:39:36,920 --> 00:39:39,640
Speaker 1: going to be comforting to the FED ahead of next

719
00:39:39,680 --> 00:39:42,479
Speaker 1: week's CPI and of course the next FED meeting. Yeah,

720
00:39:42,520 --> 00:39:46,600
Speaker 1: we do have that final read on inflation before that

721
00:39:46,719 --> 00:39:51,959
Speaker 1: meeting coming up. We've got some pretty mixed economic data

722
00:39:52,080 --> 00:39:55,440
Speaker 1: ahead of all that, the continued strength of the labor market.

723
00:39:55,520 --> 00:39:59,120
Speaker 1: At the same time, we're seeing some strength in the

724
00:39:59,120 --> 00:40:03,160
Speaker 1: services set as well. How does that potentially complicate things

725
00:40:03,160 --> 00:40:07,080
Speaker 1: for this fan? Well, the services numbers earlier in the

726
00:40:07,120 --> 00:40:11,440
Speaker 1: weeks certainly didn't help and in part led to the

727
00:40:11,520 --> 00:40:15,120
Speaker 1: ongoing sell off that we're still seeing. Um well, we've

728
00:40:15,160 --> 00:40:19,239
Speaker 1: seen up until yesterday. We'll see how that, um, how

729
00:40:19,320 --> 00:40:21,759
Speaker 1: that turns out today. If futures are starting to point

730
00:40:21,880 --> 00:40:27,360
Speaker 1: up a little bit UM. I think today markets are

731
00:40:27,400 --> 00:40:31,800
Speaker 1: worried that uh, this underlying strength is not going to last,

732
00:40:31,800 --> 00:40:35,799
Speaker 1: that we're getting more and more indicators that UM will

733
00:40:35,840 --> 00:40:39,359
Speaker 1: have lagged effects in this economy, and that things will

734
00:40:39,400 --> 00:40:42,960
Speaker 1: deteriorate next year. I think the market has been a

735
00:40:43,000 --> 00:40:47,240
Speaker 1: little overly negative in the last couple of days. But UM,

736
00:40:47,800 --> 00:40:52,440
Speaker 1: certainly we know the services are the area that stay strong.

737
00:40:52,600 --> 00:40:55,920
Speaker 1: That's also the area where we're seeing the wage pressures

738
00:40:55,960 --> 00:40:59,120
Speaker 1: and the tighter labor market UM. So all of those

739
00:40:59,160 --> 00:41:03,439
Speaker 1: are just one extra headache for the FED because other

740
00:41:03,520 --> 00:41:06,880
Speaker 1: indicators are certainly pointing in the right direction for what

741
00:41:06,960 --> 00:41:09,160
Speaker 1: the FED has been trying to achieve. Interesting that you

742
00:41:09,239 --> 00:41:11,680
Speaker 1: say that you're seeing maybe a bit of an overreaction

743
00:41:11,840 --> 00:41:14,920
Speaker 1: in the markets. Of course, we've gotten all the commentary

744
00:41:15,040 --> 00:41:18,280
Speaker 1: this week from the big Wall Street bank chief's warning

745
00:41:18,280 --> 00:41:20,840
Speaker 1: about recession, and of course now with the twos and

746
00:41:20,960 --> 00:41:25,880
Speaker 1: tens at this forty plus year inversion, what are you

747
00:41:26,120 --> 00:41:29,520
Speaker 1: seeing that makes you think that this could potentially be

748
00:41:29,600 --> 00:41:33,880
Speaker 1: something of an overreaction. Well, the the Yale curb in

749
00:41:33,960 --> 00:41:36,640
Speaker 1: version isn't new. We've had that for a while. Yes,

750
00:41:36,680 --> 00:41:39,000
Speaker 1: it's become a little more extreme, but it's certainly been

751
00:41:39,080 --> 00:41:42,240
Speaker 1: inverted for quite some time. And if you look below

752
00:41:42,280 --> 00:41:46,240
Speaker 1: the headline of some of those bank bank chief commentaries,

753
00:41:46,560 --> 00:41:49,680
Speaker 1: they weren't as negative as some of the headlines made

754
00:41:49,680 --> 00:41:53,440
Speaker 1: it to be. There's certainly a concern, and I think everyone,

755
00:41:53,560 --> 00:41:56,239
Speaker 1: especially in the US economy, you have that sort of

756
00:41:56,320 --> 00:41:59,920
Speaker 1: preemptive firing that happens that trying to cut the call.

757
00:42:00,200 --> 00:42:03,080
Speaker 1: That's always something that we see banks do, and so

758
00:42:03,120 --> 00:42:06,640
Speaker 1: they have u not an excuse, but at least a

759
00:42:06,680 --> 00:42:09,960
Speaker 1: reason for it. Um. But as we're saying earlier, some

760
00:42:10,000 --> 00:42:12,560
Speaker 1: of these services numbers and some of this other economic

761
00:42:12,640 --> 00:42:16,080
Speaker 1: data is holding up, so the FED is closer to

762
00:42:16,120 --> 00:42:20,240
Speaker 1: the end um of its tightening cycle. Then it doesn't

763
00:42:20,280 --> 00:42:23,399
Speaker 1: mean that the recession has to be as serious as

764
00:42:23,560 --> 00:42:27,239
Speaker 1: what the markets are reacting to um this week, even

765
00:42:27,280 --> 00:42:30,000
Speaker 1: though we haven't seen that many data points in that direction.

766
00:42:30,719 --> 00:42:33,920
Speaker 1: So are you looking at certain sectors or certain styles

767
00:42:34,239 --> 00:42:37,920
Speaker 1: for opportunity in this type of environment where if if

768
00:42:37,960 --> 00:42:39,960
Speaker 1: things pan out the way I think I hear you

769
00:42:40,080 --> 00:42:43,279
Speaker 1: saying that they might, that the FED might start to

770
00:42:43,440 --> 00:42:46,160
Speaker 1: move towards slower interest rate hikes sooner than the market

771
00:42:46,239 --> 00:42:50,160
Speaker 1: might be expecting. I think the market is expecting fifty

772
00:42:50,200 --> 00:42:52,560
Speaker 1: basis points next week, and I think that's what we're

773
00:42:52,560 --> 00:42:55,720
Speaker 1: going to get. Whether we get another twenty five early

774
00:42:55,800 --> 00:43:00,600
Speaker 1: next year is is a possibility. But we are certainly

775
00:43:00,640 --> 00:43:02,560
Speaker 1: getting towards the end of the aggressive part of the

776
00:43:02,560 --> 00:43:05,560
Speaker 1: typnic cycle and potentially the tight nic cycle. The FED

777
00:43:05,640 --> 00:43:07,239
Speaker 1: is going to spend a lot of time talking to

778
00:43:07,320 --> 00:43:09,839
Speaker 1: us about higher for longer, and I think they're going

779
00:43:09,880 --> 00:43:13,560
Speaker 1: to try to keep working to price out those rates

780
00:43:13,560 --> 00:43:18,080
Speaker 1: cuts rate cuts that the market has in their numbers

781
00:43:18,239 --> 00:43:20,480
Speaker 1: for the end of next year, So there's going to

782
00:43:20,560 --> 00:43:25,120
Speaker 1: be work over there. But the slowdown, we haven't seen

783
00:43:25,200 --> 00:43:29,560
Speaker 1: any real catalyst for the sharp correction in markets of

784
00:43:29,600 --> 00:43:33,080
Speaker 1: the last couple of days. We know that positioning got

785
00:43:33,160 --> 00:43:35,279
Speaker 1: lighter again, so people just maybe got they had a

786
00:43:35,320 --> 00:43:37,960
Speaker 1: couple bad days and then they figured out this was

787
00:43:38,000 --> 00:43:41,240
Speaker 1: another bare market rally, let's get out. That's certainly not helping.

788
00:43:41,800 --> 00:43:44,799
Speaker 1: But the picture for the FED hasn't changed so much

789
00:43:44,800 --> 00:43:46,800
Speaker 1: in the last two days, and the picture for growth

790
00:43:46,840 --> 00:43:50,160
Speaker 1: hasn't either. Got about thirty seconds left here ask you.

791
00:43:50,200 --> 00:43:52,440
Speaker 1: Of course, we saw that big surge in Hong Kong

792
00:43:52,560 --> 00:43:56,040
Speaker 1: shares overnight on signs that there could be even further

793
00:43:56,120 --> 00:43:59,240
Speaker 1: easing away from the strictest COVID zero policies. Does China

794
00:43:59,280 --> 00:44:02,879
Speaker 1: look more invest well to you? Now? China does look

795
00:44:02,880 --> 00:44:07,040
Speaker 1: more investable. Um, We're seeing a couple of different actions

796
00:44:07,160 --> 00:44:11,200
Speaker 1: from the Chinese policymakers, one mentioning that focus on growth

797
00:44:11,239 --> 00:44:15,120
Speaker 1: to of course the reopening measures that we're seeing, although

798
00:44:15,120 --> 00:44:17,680
Speaker 1: it might not be quite as simple as as the

799
00:44:17,680 --> 00:44:19,720
Speaker 1: way we're looking at it right now, and of course

800
00:44:19,760 --> 00:44:22,200
Speaker 1: the support for the real estate market and when you

801
00:44:22,239 --> 00:44:26,799
Speaker 1: put those together is certainly looking better if they look

802
00:44:26,920 --> 00:44:29,440
Speaker 1: at they kind of ease off on the regulation as

803
00:44:29,440 --> 00:44:32,319
Speaker 1: well for some of the big tech it certainly makes

804
00:44:32,320 --> 00:44:35,760
Speaker 1: it a more interesting investment in environment. Thanks as always

805
00:44:35,760 --> 00:44:38,120
Speaker 1: as the great getting your thoughts. Sd J. Wag, chief

806
00:44:38,160 --> 00:44:41,839
Speaker 1: investment officer at Flow Bank with us this morning. STP

807
00:44:42,000 --> 00:44:45,480
Speaker 1: futures right now up one point. The future is now

808
00:44:45,520 --> 00:44:49,840
Speaker 1: down twenty one points. NASTACK futures higher by sixteen points.

809
00:44:49,840 --> 00:44:52,960
Speaker 1: The tenure Treasury is down eight thirty seconds. The yield

810
00:44:53,080 --> 00:44:55,719
Speaker 1: three point four four percent, yield on the two year

811
00:44:55,800 --> 00:45:03,360
Speaker 1: four point to seven percent. This is Bloomberg Markets Headlines

812
00:45:03,400 --> 00:45:06,400
Speaker 1: and Breaking News twenty four hours a day at Bloomberg

813
00:45:06,440 --> 00:45:09,759
Speaker 1: dot Com, the Bloomberg Business Outland at Bloomberg Quick Take,

814
00:45:10,040 --> 00:45:19,240
Speaker 1: this is a Bloomberg Business lash and I'm Karen Moscow.

815
00:45:19,280 --> 00:45:22,160
Speaker 1: A US DOCK Index futures are mostly higher, with SMP

816
00:45:22,360 --> 00:45:24,720
Speaker 1: futures of four points or a tenth of a percent.

817
00:45:25,080 --> 00:45:27,920
Speaker 1: NASDACK futures have two tens per cent or twenty four points.

818
00:45:27,960 --> 00:45:30,360
Speaker 1: Will down futures are a little change this morning. The

819
00:45:30,480 --> 00:45:32,920
Speaker 1: decks in Germany is down about a third of a percent.

820
00:45:33,200 --> 00:45:35,560
Speaker 1: Ten year treasury down eight thirty seconds, you know, three

821
00:45:35,600 --> 00:45:37,480
Speaker 1: point four or four percent, and a yield on the

822
00:45:37,480 --> 00:45:40,520
Speaker 1: two year at four point to seven percent. Nine X

823
00:45:40,520 --> 00:45:42,799
Speaker 1: screwed oil is up one percent or seventy two cents

824
00:45:42,840 --> 00:45:45,840
Speaker 1: at seventy two seventy three cents a barrel comic school

825
00:45:45,880 --> 00:45:47,920
Speaker 1: down a tenth of upper cent or two dollars sixty

826
00:45:48,000 --> 00:45:52,600
Speaker 1: cents at seventeen. The euro one point oh five oh

827
00:45:52,640 --> 00:45:55,640
Speaker 1: six against the dollar, British pound one point two one

828
00:45:55,800 --> 00:45:58,280
Speaker 1: six one, and the yennis at one thirty six point

829
00:45:58,440 --> 00:46:02,240
Speaker 1: nine three bitcoy this morning, lit'll change at sixteen thousand,

830
00:46:02,360 --> 00:46:05,520
Speaker 1: eight hundred dollars, and sources telling Bloomberg that Unilever is

831
00:46:05,560 --> 00:46:08,160
Speaker 1: weighing the sale of a portfolio of US ice cream

832
00:46:08,200 --> 00:46:10,879
Speaker 1: brands that could be valued at as much as three

833
00:46:10,960 --> 00:46:15,439
Speaker 1: billion dollars, and as a Bloomberg Business flash, Nathan, all right, Karen,

834
00:46:15,480 --> 00:46:17,760
Speaker 1: thank you. It's now five fifty six on Wall Street.

835
00:46:17,760 --> 00:46:20,720
Speaker 1: It's time for our daily Bloomberg Law Brief, exploring legal

836
00:46:20,760 --> 00:46:23,440
Speaker 1: issues in the news. Today, we're looking at a Trump

837
00:46:23,520 --> 00:46:26,880
Speaker 1: business that's been convicted of criminal conduct for the first time.

838
00:46:27,000 --> 00:46:29,160
Speaker 1: After a month long trial, a jury in New York

839
00:46:29,200 --> 00:46:34,160
Speaker 1: has convicted to Trump organization companies Trump Corporation and Trump

840
00:46:34,239 --> 00:46:38,840
Speaker 1: Payroll Corporation of all seventeen counts against them, including a

841
00:46:38,920 --> 00:46:43,200
Speaker 1: scheme to the fraud, conspiracy, criminal tax fraud, and falsifying

842
00:46:43,280 --> 00:46:46,960
Speaker 1: business records. Former President Donald Trump was not charged in

843
00:46:46,960 --> 00:46:50,360
Speaker 1: this case. For more, Bloomberg's June Grosso speaks with Bloomberg

844
00:46:50,480 --> 00:46:54,400
Speaker 1: Legal reporter Patricia Hurtado, who covered the trial. What's the

845
00:46:54,520 --> 00:46:58,680
Speaker 1: likely sentence for this verdict? Well, both of the companies

846
00:46:58,760 --> 00:47:02,120
Speaker 1: now what is estimated to be a grand total of

847
00:47:02,239 --> 00:47:06,279
Speaker 1: one point six million dollars and fine for not having

848
00:47:06,280 --> 00:47:09,960
Speaker 1: the employees paying taxes and for being convicted. Some may say, well,

849
00:47:10,160 --> 00:47:13,480
Speaker 1: that's paltry for a company like Trump Ort. Why does

850
00:47:13,520 --> 00:47:16,279
Speaker 1: it matter? But it's a huge taint on the good

851
00:47:16,400 --> 00:47:19,880
Speaker 1: name and goodwill of the company that is belongs to

852
00:47:19,920 --> 00:47:23,400
Speaker 1: the former president. He obviously was tweeting about it and

853
00:47:23,600 --> 00:47:26,720
Speaker 1: complaining that he knew nothing of this fraud. Some people

854
00:47:26,760 --> 00:47:29,759
Speaker 1: are suggesting to us that it may make it more

855
00:47:29,800 --> 00:47:34,120
Speaker 1: difficult for the company to do business because some lenders

856
00:47:34,160 --> 00:47:37,520
Speaker 1: and possibly partners may not want to do any business

857
00:47:37,560 --> 00:47:41,600
Speaker 1: anymore with such Trump Org and its entities because of

858
00:47:41,640 --> 00:47:44,160
Speaker 1: this conviction, Because why would you want to do business

859
00:47:44,160 --> 00:47:48,359
Speaker 1: with a salon? There's nothing regulatory about state law. It's

860
00:47:48,480 --> 00:47:51,239
Speaker 1: it's not as rigorous as one would hope to get,

861
00:47:51,440 --> 00:47:54,440
Speaker 1: and yet you know it's got a reputational harm to it.

862
00:47:54,840 --> 00:47:58,160
Speaker 1: There's part of Trump's response. The case was about Alan

863
00:47:58,239 --> 00:48:02,600
Speaker 1: Wisselberg committing tax for a on his personal tax returns, etcetera.

864
00:48:03,160 --> 00:48:07,680
Speaker 1: Every witness repeatedly testified that President Trump and the Trump

865
00:48:07,760 --> 00:48:11,799
Speaker 1: family knew nothing about his actions. But wasn't there testimony

866
00:48:11,800 --> 00:48:16,840
Speaker 1: about Trump approving these transactions and signing checks. They showed

867
00:48:17,040 --> 00:48:22,520
Speaker 1: ledgers or memos where Trump was personally okay certain bonus payments,

868
00:48:22,719 --> 00:48:26,520
Speaker 1: and you saw his you know, signature and initials with

869
00:48:26,600 --> 00:48:31,480
Speaker 1: the Black sharky Okaine. These payments. You saw him approving

870
00:48:31,760 --> 00:48:36,680
Speaker 1: certain executive getting car leases. There were three employees that

871
00:48:37,040 --> 00:48:42,480
Speaker 1: testified for the prosecutors, and the testimony showed that basically

872
00:48:42,840 --> 00:48:47,760
Speaker 1: Donald Trump had to and did approve and sign every

873
00:48:47,880 --> 00:48:51,279
Speaker 1: check over. And when you start thinking about what wou

874
00:48:51,320 --> 00:48:53,760
Speaker 1: did Donald Trump see and what came across his death,

875
00:48:53,960 --> 00:48:57,400
Speaker 1: that's obviously many of these payments, like including car payments

876
00:48:57,400 --> 00:49:00,799
Speaker 1: to these leases for these Mercedes ben were approved by

877
00:49:00,920 --> 00:49:04,560
Speaker 1: Donald Trump. There was also evidence that show he had

878
00:49:04,600 --> 00:49:09,399
Speaker 1: had conversation with Weifelberg about getting an impartment for him

879
00:49:09,520 --> 00:49:11,040
Speaker 1: that it was going to be paid for by the

880
00:49:11,040 --> 00:49:14,920
Speaker 1: Trump corporation. So there were many indications that Trump knew.

881
00:49:17,200 --> 00:49:21,160
Speaker 1: That's Bloomberg Legal reporter Patricia Hurtado speaking with Bloomberg June Grosso.

882
00:49:21,440 --> 00:49:23,680
Speaker 1: You can catch more of that interview plus analysis of

883
00:49:23,719 --> 00:49:26,399
Speaker 1: the latest legal news by subscribing to the Bloomberg Law

884
00:49:26,480 --> 00:49:31,200
Speaker 1: podcast or downloading the show at Bloomberg dot com, Slash podcasts,

885
00:49:31,239 --> 00:49:34,360
Speaker 1: and attorneys can find exceptional legal research and business development

886
00:49:34,360 --> 00:49:37,240
Speaker 1: tools at Bloomberg law dot com and on the Bloomberg

887
00:49:37,320 --> 00:49:40,440
Speaker 1: terminal at the Law Go straight ahead. We'll get a

888
00:49:40,520 --> 00:49:43,200
Speaker 1: check out of your latest business headlines, all the news

889
00:49:43,360 --> 00:49:46,640
Speaker 1: you need to start your day. Our two of Bloomberg

890
00:49:46,719 --> 00:49:48,560
Speaker 1: Daybreak starts right now