WEBVTT - Bloomberg Daybreak: December 8, 2022 - Hour 1 (Radio) 0:00:00.640 --> 0:00:04.000 Live from the Bloomberg Interactive Brooker Studios. This is is Bloomberg 0:00:04.080 --> 0:00:07.680 day Break for Thursday, December eighty two. Coming up to shower, 0:00:07.760 --> 0:00:10.440 Wall Street looks to snap a five day losing streak 0:00:10.480 --> 0:00:13.520 as recession fears pile up. Socks in Hong Kong rally 0:00:13.600 --> 0:00:17.320 under course at mask wearing requirements maybe scraped. Elon Musk's 0:00:17.320 --> 0:00:20.680 bankers consider new margin lungs to cut risky Twitter debt 0:00:20.800 --> 0:00:24.439 and disgrace. Crypto founder Sam Bankman Freed may soon appear 0:00:24.520 --> 0:00:27.480 on Capitol Hill. Governor hokel announces her plans for New 0:00:27.560 --> 0:00:31.040 Yorkers to avoid the Triple Demick. Plus, New Jersey Governor 0:00:31.080 --> 0:00:33.559 Murphy is out of the hospital, left of surgery. I'm 0:00:33.600 --> 0:00:36.600 Michael bar More ahead, I'm John Stas shown sports Aaron 0:00:36.680 --> 0:00:39.320 Judge resigned with the Yankees, the Mets at a picture 0:00:39.400 --> 0:00:44.760 wins for the Knicks, Nets, Rangers, and St. John. That's 0:00:44.800 --> 0:00:48.479 all trendy ahead on Bloomberg day Break on Bloomberg eleven 0:00:48.560 --> 0:00:52.000 three on New York, Bloomberg nine one, Washington, d C, 0:00:52.479 --> 0:00:56.040 Bloomberg one oh six one, Boston, Bloomberg nine sixties and 0:00:56.120 --> 0:01:00.000 Francisco Sirius x M one nineteen and around the world. 0:01:00.000 --> 0:01:03.440 Old on Bloomberg Radio Dot Carmen via The Bloomberg Business. 0:01:07.600 --> 0:01:10.640 Good morning. I'm Nathan Hagar and I'm Karen Moscow. Any 0:01:10.680 --> 0:01:14.040 West Dock Index futures are higher this morning. It is 0:01:14.120 --> 0:01:16.200 five o one on Wall Street. We checked the markets 0:01:16.240 --> 0:01:19.440 all day long at Bloomberg Radio. Right now, SNP futures 0:01:19.440 --> 0:01:21.640 are up five points, or a tenth of upper cent. 0:01:22.000 --> 0:01:25.119 DAL futures are little change. NOWSDACK futures up two tents 0:01:25.200 --> 0:01:27.800 of upper cent or twenty three points. The decks in 0:01:27.840 --> 0:01:31.360 Germany little changed. Ten Your treasury down eight thirty seconds, 0:01:31.400 --> 0:01:33.840 held three point four or four percent. The yield on 0:01:33.880 --> 0:01:36.520 the two year is at four point to seven percent. 0:01:36.640 --> 0:01:39.040 Nathan Well Karen. Stocks are coming off five straight days 0:01:39.080 --> 0:01:41.240 of losses, and the biggest moves have been in the 0:01:41.240 --> 0:01:44.440 bond market. The spread between the two and tenure yields, 0:01:44.440 --> 0:01:47.320 a gauge often used to predict recessions, is it's most 0:01:47.400 --> 0:01:51.120 inverted since the nineteen seventies. David Harden, his chief investment 0:01:51.120 --> 0:01:54.400 officer at Summit Global Investments, Well, I think people are 0:01:54.440 --> 0:01:57.040 still a little bit focused on the possibility of this 0:01:57.400 --> 0:02:01.800 uh PAL pivot. I think that's in people's minds and hope, 0:02:02.080 --> 0:02:05.000 I think maybe they're wanting that under their Christmas tree, 0:02:05.040 --> 0:02:07.240 if you will. And and so I think this stats 0:02:07.280 --> 0:02:10.640 a little bit more focused on him playing Santa Claus 0:02:10.760 --> 0:02:13.600 for us, But in all reality, the bond market might 0:02:13.639 --> 0:02:15.160 have it right. They seem to get it right a 0:02:15.160 --> 0:02:17.400 lot more often, so we have to pay attention to 0:02:17.440 --> 0:02:20.440 that move some global investments, David Harden says the main 0:02:20.520 --> 0:02:23.440 focus for traders remains sharply on the FED well in 0:02:23.520 --> 0:02:26.040 Asia overnight, Nathan Hong Kong was the top performer in 0:02:26.040 --> 0:02:28.480 the region. The Hang Sang game more than three percent 0:02:28.520 --> 0:02:30.880 in today's session, and we get the recap from Bloomberg 0:02:30.960 --> 0:02:33.959 tivon Man in Hong Kong, Karen and Nathan. The region 0:02:34.080 --> 0:02:36.280 really only being lifted by one story in Hong Kong 0:02:36.320 --> 0:02:39.240 after reports the city is looking at scrapping rules that 0:02:39.320 --> 0:02:43.560 require masks at public venues, also cutting quarantine times from 0:02:43.600 --> 0:02:46.800 seven to five days. The reopening trade was once again 0:02:46.919 --> 0:02:51.400 on fire from a Calcasino's airlines to retail all up 0:02:51.400 --> 0:02:54.239 on the news. This clear preference on Chinese equities and 0:02:54.440 --> 0:02:57.600 M and B is quite clear now, with sources telling 0:02:57.680 --> 0:03:01.200 us Chinese regulators have asked the nation biggest insurers to 0:03:01.280 --> 0:03:05.239 buy bonds after retail investors offloaded cash from their fixed 0:03:05.240 --> 0:03:09.320 income investments in Hong Kong. I'm Von Man Bloomberg Daybreak. 0:03:09.360 --> 0:03:12.000 Al righty Von, thank you. Meantime in China, senior health 0:03:12.040 --> 0:03:15.560 advisors warning the vast majority of the population may eventually 0:03:15.560 --> 0:03:18.880 contract COVID. The government is now taking steps toward reversing 0:03:18.880 --> 0:03:22.200 its zero tolerance policy. The former deputy chief of China's 0:03:22.200 --> 0:03:25.639 disease control agency says six of the population could get 0:03:25.680 --> 0:03:29.320 infected in the first wave. Back here in the US, 0:03:29.440 --> 0:03:32.440 Nathan Tesla and Twitter are the names where watching bankers 0:03:32.480 --> 0:03:35.520 for Elon Musk are considering providing the billionaire with new 0:03:35.560 --> 0:03:37.680 margin loans tied to the companies, and we get the 0:03:37.680 --> 0:03:41.760 details live with Bloomberg Steve Rabbitport, Steve, good morning, Good morning, Karen, 0:03:41.800 --> 0:03:44.360 and Nathan. The margin loans are one of several options 0:03:44.360 --> 0:03:47.000 for Musk's backers to ease the burden of the thirteen 0:03:47.040 --> 0:03:50.480 billion dollars Twitter took on as part of his acquisition 0:03:50.480 --> 0:03:53.120 of the platform. The banks, led by Morgan Stanley, put 0:03:53.160 --> 0:03:55.640 up their own cash to supply the entire debt package. 0:03:55.680 --> 0:03:58.760 Because of a decline in credit markets. Musk's tumultuous start 0:03:58.800 --> 0:04:00.800 at the helm of Twitter didn't help the cause either. 0:04:01.200 --> 0:04:03.960 The company is estimated to face annual interest costs of 0:04:03.960 --> 0:04:06.720 about one point two billion dollars if the current debt 0:04:06.760 --> 0:04:09.520 structure remains in place. Live in New York, I'm Steve 0:04:09.600 --> 0:04:13.080 Rappaport Bloomberg Daybreak. Thanks Steve, turning to the crypto space. 0:04:13.120 --> 0:04:15.560 We could soon get more information on the epic collapse 0:04:15.600 --> 0:04:18.479 of f t X. Disgraced founder Sam Bankman Freed may 0:04:18.520 --> 0:04:21.320 appear on Capitol Hill as soon as next week. Details 0:04:21.320 --> 0:04:25.200 from Bloomberg's Amy Morris in our newsroom in Washington. The 0:04:25.279 --> 0:04:28.279 Senate Banking Committee has asked Bankman Freed to appear on 0:04:28.360 --> 0:04:32.320 Capitol Hill December four. Lawmakers want more information about the 0:04:32.360 --> 0:04:34.960 collapse of fd X, and they want to know quote, 0:04:35.120 --> 0:04:38.640 how client funds were misappropriated, how clients were blocked from 0:04:38.680 --> 0:04:42.120 withdrawing their own money, and how you orchestrated a cover up. 0:04:42.520 --> 0:04:45.720 The House Financial Services Committee hearing is set for the thirteen. 0:04:46.000 --> 0:04:48.400 Bank Man Freed had said he might not be ready 0:04:48.440 --> 0:04:52.000 to testify by then. Chair Maxine Water says a subpoena 0:04:52.160 --> 0:04:55.480 is quote definitely on the table in Washington. I'm maybe 0:04:55.520 --> 0:04:58.039 more as Bloomberg Daybreak, right, Amy, thank you. That's not 0:04:58.120 --> 0:05:01.880 the only news on disgraced former ecuatives this morning. Late yesterday, 0:05:01.960 --> 0:05:06.039 former Theonis President in chief operating officer Ramish Sunny Balwani 0:05:06.440 --> 0:05:09.440 was sentenced to prison, and Bloomberg said, Baxter has that story. 0:05:09.800 --> 0:05:13.000 The sentence coming from US District Judge Edward Davola and 0:05:13.000 --> 0:05:17.440 San Jose thirteen years for defrauding investors and patients of 0:05:17.560 --> 0:05:21.799 Pharaonis Bwana ran the blood testing startup alongside its founder 0:05:21.800 --> 0:05:25.560 and chief executive officer, Elizabeth Holmes. The sentence is very 0:05:25.560 --> 0:05:27.919 close to what prosecutors had asked for a term of 0:05:28.000 --> 0:05:31.479 fifteen years. The judge said he'll decide later how much 0:05:31.560 --> 0:05:35.520 restitution must be paid. The government has asked for both 0:05:35.560 --> 0:05:38.720 to be ordered to pay about eight hundred million dollars. 0:05:39.279 --> 0:05:42.400 In San Francisco, I'm at Baxter Bloomberg daybreak, all right, 0:05:42.480 --> 0:05:45.360 and thank you. In the labor market, inflation plus a 0:05:45.360 --> 0:05:48.200 battle for talent and now cost cutting efforts are making 0:05:48.200 --> 0:05:51.360 for an interesting picture of corporate America. Now we're learning 0:05:51.360 --> 0:05:54.560 ex On Mobile is awarding its US employees pay increases 0:05:54.600 --> 0:05:58.920 above inflation. Just weeks after posting record profit. Bloomberg's Charlie 0:05:58.920 --> 0:06:03.360 Pellett reports it underscores just how strong two has been 0:06:03.440 --> 0:06:07.520 for the fossil fuel industry, while other sectors like technology 0:06:07.560 --> 0:06:12.000 and finance are cutting jobs. Sources tell Bloomberg workers will 0:06:12.040 --> 0:06:16.200 receive an average salary bump of nine on. Those who 0:06:16.240 --> 0:06:20.560 got promoted will see an additional five percent increase. A 0:06:20.640 --> 0:06:24.039 spokeswoman four X on Mobile says in aggregate it is 0:06:24.120 --> 0:06:29.080 Exxon's biggest salary award in fifteen years. In New York, 0:06:29.160 --> 0:06:32.120 Charlie Penalty Bloomberg daybreak. All right, Charlie, thanks, and it's 0:06:32.120 --> 0:06:34.720 a different labor story at the New York Times. More 0:06:34.720 --> 0:06:37.320 than a thousand employees are preparing to stage a one 0:06:37.400 --> 0:06:40.840 day walk out today. It escalates a standoff with management 0:06:40.880 --> 0:06:44.120 over a stalled contract. A New York Times spokesperson said 0:06:44.120 --> 0:06:47.240 the company was disappointed that the news guild was threatening 0:06:47.279 --> 0:06:50.760 to strike again. Futures are higher this morning, with S 0:06:50.800 --> 0:06:54.560 and P futures up seven points. Straight ahead, your latest 0:06:54.440 --> 0:06:58.000 of local headlines, plus a check of sports. And this 0:06:58.360 --> 0:07:04.880 is Bloomberg. Thanks hearing. It's five oh seven on Wall Street. 0:07:04.880 --> 0:07:08.360 We're fifty one degrees in central Park should be nice today, Sonny, 0:07:08.400 --> 0:07:10.880 and mild highs in the low fifties. I'm gonna get 0:07:10.920 --> 0:07:12.560 down to the mid thirties tonight. It's gonna be a 0:07:12.560 --> 0:07:15.360 little cooler as we head into the weekend. Now, let's 0:07:15.360 --> 0:07:17.160 bringing Michael bar with a look at what else is 0:07:17.160 --> 0:07:19.520 going on in New York and around the world. Good morning, Michael, 0:07:19.720 --> 0:07:22.640 Good morning Nathan. Governor Kathy Hocle is pushing efforts to 0:07:22.720 --> 0:07:26.320 keep New Yorkers healthy with winter in the holidays just ahead. 0:07:26.600 --> 0:07:30.080 Hocal says people need to take precautions because COVID cases 0:07:30.080 --> 0:07:33.800 are ticking up alongside R s V and children and 0:07:33.920 --> 0:07:36.680 influenza are not all the woods. The threat is real 0:07:37.080 --> 0:07:40.480 and we have cases. I remember this. We're watching this intensely. 0:07:41.000 --> 0:07:44.000 The winter is often a tough time for the most vulnerable, 0:07:44.040 --> 0:07:47.280 but Hocal promises New York will be ready. Complacency is 0:07:47.280 --> 0:07:49.960 our enemy. That is my biggest fear, that people are 0:07:50.000 --> 0:07:53.640 so desensitized and feeling that well, it is the norm. Yes, 0:07:53.680 --> 0:07:55.960 it has become our norm, but it does not have 0:07:56.040 --> 0:07:58.480 to be the norm that everybody gets sick. Governor Hocal 0:07:58.520 --> 0:08:01.160 says the state will provide to sting vaccines and nearly 0:08:01.200 --> 0:08:03.920 eight thousand ventilators said to be sent to hospitals that 0:08:04.000 --> 0:08:07.320 need them. Mayor Eric Adams says the system to provide 0:08:07.320 --> 0:08:10.160 affordable housing is broken, not just in New York City 0:08:10.200 --> 0:08:12.960 but all over the country. Adam, speaking at a faith 0:08:12.960 --> 0:08:16.280 based summit in New York, says, we all just need 0:08:16.360 --> 0:08:19.680 to stop kicking the can down the road. There's no 0:08:19.800 --> 0:08:22.440 desire to come and bring you together and say you 0:08:22.560 --> 0:08:25.640 have all of this property, why don't you come with 0:08:25.680 --> 0:08:28.200 a real housing plan. There's no desire to fix it. 0:08:28.320 --> 0:08:31.480 People are making money up the dysfunctionality of our cities 0:08:31.600 --> 0:08:34.920 across the America. A frustrated Adam says, we know at 0:08:34.920 --> 0:08:36.880 the beginning of the year we are going to fail 0:08:36.920 --> 0:08:40.240 a large number of people, and they're primarily black and 0:08:40.400 --> 0:08:43.720 brown and immigrants. The White House as President Joe Biden 0:08:43.760 --> 0:08:47.080 will announced a thirties six billion dollar bailout for the 0:08:47.120 --> 0:08:50.040 Central States Pension Fund, helping to show up one of 0:08:50.080 --> 0:08:54.240 the nation's biggest multi employer plans. The President angered some 0:08:54.320 --> 0:08:58.280 of his labor allies last week by signing legislation imposing 0:08:58.280 --> 0:09:02.520 a contract he personally helped to negotiate between freight railroads 0:09:02.600 --> 0:09:05.800 and their union's averting a possible strike that threatened to 0:09:05.800 --> 0:09:09.480 cripple the economy. However, four of the twelve unions involved 0:09:09.520 --> 0:09:12.880 rejected the contract. New Jersey Governor Phil Murphy had minor 0:09:12.920 --> 0:09:16.680 surgery yesterday and is recuperating at home. The Governor's office 0:09:16.720 --> 0:09:19.560 did not specify what the surgery was for, but said 0:09:19.600 --> 0:09:22.600 it was a medical procedure. Officials also said it was 0:09:22.640 --> 0:09:25.360 not related to the cancer. It's tumor. Murphy had removed 0:09:25.520 --> 0:09:29.040 from Miss Kidney. In Global News twenty four hours a 0:09:29.120 --> 0:09:32.199 day on air and on Bloomberg Quicktake, powered by more 0:09:32.240 --> 0:09:34.640 than twenty seven hundred journalist and analysts more than a 0:09:34.720 --> 0:09:38.600 hundred twenty countries. Michael barrb this is Bloomberg. Ne alright, Michael, 0:09:38.640 --> 0:09:45.040 thank you almost five ten on Wall Street time for 0:09:45.040 --> 0:09:47.319 the Bloomberg Sports Update, brought to you by twice State Out. 0:09:47.400 --> 0:09:49.680 Good morning, John Stosh hour, Good morning Nathan. After the 0:09:49.679 --> 0:09:52.280 news that Aaron Judge had resigned with the Yankees, some 0:09:52.440 --> 0:09:55.400 details and merge about how it all went down. Believed 0:09:55.400 --> 0:09:58.040 to be a two horse raised between the Yanks and Giants, 0:09:58.360 --> 0:10:01.400 the San Diego Padres swooped in at the eleventh hour 0:10:01.480 --> 0:10:05.199 offered Judge are reported ten years, four hundred million dollars 0:10:05.200 --> 0:10:07.960 that got the attention of Yankee owner house Kleinebrenner, who 0:10:08.000 --> 0:10:10.599 was vacationing in Italy. He got on the phone with 0:10:10.720 --> 0:10:13.000 Judge up to his offer to the nine years, three 0:10:13.040 --> 0:10:16.040 hundred and sixty million that got the deal done. Yankee 0:10:16.080 --> 0:10:20.000 GM Brian Cashman said Steinbrenner was the Marianna Rivera of 0:10:20.040 --> 0:10:22.800 the negotiations. The Padres then used some of that money 0:10:22.880 --> 0:10:25.880 last night to sign Xander Bogart's away from the Red 0:10:25.880 --> 0:10:29.480 Sox for eleven years, two hundred and eighty million Winter 0:10:29.559 --> 0:10:32.719 meetings and with eighteen players having signed contracts worth a 0:10:32.760 --> 0:10:35.760 total of one point six billion, the Mets out of 0:10:35.800 --> 0:10:38.200 the picture of veteran Jose Quintana. This will be his 0:10:38.320 --> 0:10:40.439 seventh teen He pits to an e r A under three. 0:10:40.880 --> 0:10:43.600 Last season, Nick's all of a sudden playing defense. They 0:10:43.640 --> 0:10:45.679 had allowed over a hundred points at each of the 0:10:45.720 --> 0:10:48.440 first twenty three games, they allowed under ninety in the 0:10:48.520 --> 0:10:50.840 last two. They've beat Atlanta at the Garden one thirteen 0:10:50.840 --> 0:10:54.040 to eighty nine. Big game for Julius Randall thirty four points, 0:10:54.040 --> 0:10:57.520 seventy rebounds, five assists at Barkley's nets made it five. 0:10:57.559 --> 0:11:00.480 The last six beat Charlotte one two to one, sixteen 0:11:00.520 --> 0:11:03.719 Pymrie irving thirty three points, Kevin Durant had twenty nine 0:11:03.720 --> 0:11:06.240 and Seth Prairie twenty and the three of them together 0:11:06.640 --> 0:11:09.640 had twenty three assists. Big third period for the Rangers, 0:11:09.640 --> 0:11:12.280 they scored four times and a span of less than 0:11:12.320 --> 0:11:14.360 six minutes, and they beat Vegas, the top team in 0:11:14.400 --> 0:11:17.080 the West, five to one. Big East opener for St. 0:11:17.120 --> 0:11:20.240 John's and eighty six sixty seven win over De Paul 0:11:20.559 --> 0:11:23.520 John stash Award Bloomberg Sports Nathan, Thank you John, and 0:11:23.520 --> 0:11:26.160 Bloomberg Sports was brought to you by Audie. Don't let 0:11:26.160 --> 0:11:28.600 someone else drive off and the OUTI model you've always wanted. 0:11:28.679 --> 0:11:31.120 Visit your local Tri state Audie dealer to get behind 0:11:31.160 --> 0:11:33.960 the wheel of yours today, or visit Outie Offers dot 0:11:34.000 --> 0:11:37.440 com for more information. Five eleven on Wall Street. Just 0:11:37.480 --> 0:11:40.280 ahead on Bloomberg Daybreak, we'll get more on China's moves 0:11:40.320 --> 0:11:44.319 away from COVID zero. First SMP futures are up four points, 0:11:44.320 --> 0:11:47.680 staff futures up nine NASTAC futures are higher by twenty 0:11:47.679 --> 0:11:51.080 four points. The tenure treasury is down seven thirty seconds 0:11:51.080 --> 0:11:53.240 deal three point four or four percent yield on the 0:11:53.280 --> 0:11:56.360 two year four point to seven percent. That is an 0:11:56.360 --> 0:12:02.720 inversion of eighty three basis points. It's five twelve on 0:12:02.840 --> 0:12:05.200 Wall Street. This is Bloomberg Daybreak, and we want to 0:12:05.240 --> 0:12:07.679 turn out to what's happening in China and the optimism 0:12:07.720 --> 0:12:10.319 we're seeing in markets there, with even more signs that 0:12:10.400 --> 0:12:13.199 the government in Beijing is putting COVID zero in the past. 0:12:13.240 --> 0:12:15.960 We're joined now live from Hong Kong by Bloomberg's Rebecca 0:12:16.120 --> 0:12:18.160 Chung Wilkins. Rebecca, it's good to have you back with 0:12:18.240 --> 0:12:20.719 us this morning. I guess the latest we're hearing from 0:12:20.720 --> 0:12:25.480 top health officials in China is a warning about potentially 0:12:25.480 --> 0:12:29.040 the vast majority of the country getting infected. It sounds 0:12:29.080 --> 0:12:31.840 like a pretty significant, at least rhetorical change from what 0:12:31.880 --> 0:12:36.360 we've been hearing from the Chinese government in the past. Absolutely, 0:12:36.400 --> 0:12:38.920 it's a very very significant shift, and it's really the 0:12:38.960 --> 0:12:42.040 first time that we've seen very high level officials in 0:12:42.040 --> 0:12:44.880 this case that a former deputy chief of China's CDC 0:12:45.840 --> 0:12:50.280 talking about the potentials of RESTful ramifications and and his 0:12:50.440 --> 0:12:54.120 estimates are quite strikingly high. So He's saying, just in 0:12:54.240 --> 0:12:57.440 the first wave of infections, which essentially sort of we 0:12:57.520 --> 0:13:01.520 are entering right now, about six percent of the population 0:13:01.600 --> 0:13:04.679 is going to be infected with some variant of COVID. 0:13:04.760 --> 0:13:07.200 And just to put that into context, um in the 0:13:07.320 --> 0:13:10.280 US that that the estimate is currently for all of 0:13:10.320 --> 0:13:13.520 the waves is estimated around fifty So it is very, 0:13:13.600 --> 0:13:16.920 very high. And it really does underscore the challenge for 0:13:17.040 --> 0:13:19.840 China here, which is whether or not it's health care 0:13:19.880 --> 0:13:24.640 system can really support the spread of the virus so 0:13:24.720 --> 0:13:28.280 quickly through its population. Well, what could this new stance 0:13:28.360 --> 0:13:31.480 potentially mean for China's economy. I mean, we're getting some 0:13:31.520 --> 0:13:35.760 pretty strong warnings from some of the biggest firms on 0:13:35.840 --> 0:13:39.280 Wall Street about what a move away from COVID zero 0:13:39.640 --> 0:13:43.440 could mean in terms of the potential for you know, 0:13:43.720 --> 0:13:48.560 temporary shutdowns of businesses that sort of thing. Yes, indeed, 0:13:48.600 --> 0:13:54.600 I mean disruption from COVID outbreak, particularly knockdowns. We already 0:13:54.640 --> 0:13:57.920 sort of soared through the very weak import export data, 0:13:58.000 --> 0:14:01.000 both of which was was weaker than expect did UM 0:14:01.080 --> 0:14:05.560 and and that really is going to continue longer term accord, 0:14:05.679 --> 0:14:09.000 The hope is that it will offset the sort of 0:14:09.360 --> 0:14:13.599 longer consequences of COVID and HATS ex center which it 0:14:13.679 --> 0:14:17.560 will be weighed on the Chinese economy, particularly on consumer 0:14:17.640 --> 0:14:21.600 demand and production as well. Um the one sort of 0:14:21.680 --> 0:14:25.400 bright spot here is that if China does effectively move 0:14:25.440 --> 0:14:29.200 away from lockdown, which has been the thing that really 0:14:29.240 --> 0:14:32.360 has a sort of styy need production, when that hit 0:14:32.480 --> 0:14:36.800 certain factories that could actually eventually sort of lead to 0:14:36.920 --> 0:14:41.120 us sustained um sustained level of production and level out, 0:14:41.720 --> 0:14:45.480 which we haven't really seen China trying to do at 0:14:45.560 --> 0:14:51.240 a sort of countrywide level so far. Notwithstanding the macroeconomic 0:14:51.280 --> 0:14:54.200 potential here, it was really interesting overnight to see the 0:14:54.240 --> 0:14:56.840 reaction in the market, particularly with the Hang Sing in 0:14:56.920 --> 0:15:00.160 Hong Kong jumping three point four per cent. Guess that's 0:15:00.160 --> 0:15:03.920 related as well to some restrictions being used in the 0:15:04.040 --> 0:15:09.200 city right, yes, indeed, so Hong Kong. Although most of 0:15:09.240 --> 0:15:11.920 the restrictions can be lifted, we still have a masked 0:15:12.080 --> 0:15:15.720 mandate both indoors and outdoors. So there is this speculation 0:15:15.800 --> 0:15:19.640 local media as reported citing one one source, that we 0:15:19.760 --> 0:15:22.840 may be seeing a lifting of the mask mandates outside 0:15:23.200 --> 0:15:26.240 and some of the testing regulations may be lifted, but 0:15:26.240 --> 0:15:29.760 there's still quite rigorous testing when you re enter Hong Kong. 0:15:30.160 --> 0:15:33.080 Um there's still mandatory testing when you arrived, for example, 0:15:33.120 --> 0:15:35.000 and you have to continue to go to these centers 0:15:35.040 --> 0:15:37.760 to test. So that is how driving these moves. I 0:15:37.880 --> 0:15:39.880 will say that as much as we're seeing kind of 0:15:39.960 --> 0:15:42.680 Chinese assets in Hong Kong assets rippling of boring, they 0:15:42.720 --> 0:15:44.920 tend to be trading on the rumors. So we're having 0:15:45.000 --> 0:15:47.400 rumors of ripping through the market that this is going 0:15:47.440 --> 0:15:49.160 to be listed or that's going to be lifted, and 0:15:49.160 --> 0:15:52.600 then when we actually see the announcement, it's somehow not 0:15:52.680 --> 0:15:54.800 quite meeting those expectations, so then we saw a bit 0:15:54.800 --> 0:15:56.680 of a pull back in the sell off. So that's 0:15:56.720 --> 0:15:59.240 so far has sort of been the characteristics of trading 0:15:59.280 --> 0:16:01.320 over the last couple of days, I'd say, But in 0:16:01.400 --> 0:16:04.640 terms of the announcements that we're hearing from the Chinese 0:16:04.680 --> 0:16:07.720 mainland and the warnings from the health officials here, I 0:16:07.720 --> 0:16:11.080 mean that sort of highlights how far behind I think 0:16:11.240 --> 0:16:14.600 China is in terms of the way they're going about 0:16:14.720 --> 0:16:17.040 this virus compared to the rest of the world, which 0:16:17.080 --> 0:16:20.800 has been warning their populations about the potential for people 0:16:20.840 --> 0:16:25.480 being infected. Majorities being infected for quite some time. Yeah, 0:16:25.600 --> 0:16:27.760 isn't it remarkable? I mean, it is the thing that 0:16:28.000 --> 0:16:30.520 always comes up when I when I talk to people 0:16:30.680 --> 0:16:32.440 or even you know, this year was the first year 0:16:32.480 --> 0:16:36.280 I visited overseas in two years after really strict quarantine 0:16:37.000 --> 0:16:40.560 measures in Hong Kong, and it's such a different reality 0:16:40.640 --> 0:16:43.880 that people are living in, particularly in mainland China, and 0:16:43.920 --> 0:16:47.080 whether it has been such stringent restrictions on daily life. 0:16:47.240 --> 0:16:50.040 It was just a few months ago that Shanghai City 0:16:50.160 --> 0:16:54.120 twenty six million would locked down for really two months 0:16:54.120 --> 0:16:57.040 and sometimes for longer for some people. So you know, 0:16:57.320 --> 0:16:59.400 the sort of speak to some of that frustration we 0:16:59.480 --> 0:17:02.080 saw with the protest, where a lot of visit of 0:17:02.200 --> 0:17:05.760 anger over these policies have bubbled over, and not just 0:17:05.800 --> 0:17:08.040 sort of in Beijing or Shanghai, but really in these 0:17:08.080 --> 0:17:10.840 sort of major cities across China. So it is there 0:17:10.920 --> 0:17:14.080 is this also a social unrest element where that China 0:17:14.160 --> 0:17:18.879 is a lengthy, protracted experience of COVID restriction measures is 0:17:18.920 --> 0:17:24.440 now starting also to weigh on morale. All right, Rebecca 0:17:24.560 --> 0:17:27.360 Chung Wilkins with us live from Hong Kong from Bloomberg News. 0:17:27.680 --> 0:17:30.320 Thank you, as always for keeping US up to date 0:17:30.359 --> 0:17:32.600 on what's happening in China. Of course, we continue to 0:17:32.640 --> 0:17:35.560 watch the world's second largest economy very closely in the 0:17:35.560 --> 0:17:39.280 implications of what their China or what their COVID stance 0:17:39.600 --> 0:17:42.840 could mean, not just for the domestic economy in China, 0:17:42.920 --> 0:17:45.679 but more broadly around the world. Looking ahead to the 0:17:45.680 --> 0:17:49.199 market open this morning, SMP futures are up three points now, 0:17:49.320 --> 0:17:52.880 Future is down one now and DASTACK futures are higher 0:17:52.920 --> 0:17:56.359 by nineteen points, so pretty much little changed across the board. 0:17:56.400 --> 0:18:04.159 You're listening to Bloomberg Daybreak, markets, headlines and breaking news 0:18:04.280 --> 0:18:06.879 twenty four hours a day at Bloomberg dot Com, the 0:18:06.920 --> 0:18:11.040 Bloomberg Business Land, at Bloomberg Victap. This is a Bloomberg 0:18:11.119 --> 0:18:20.200 Business Flash and I'm Karen Moscow. US dot Index futures 0:18:20.240 --> 0:18:23.600 are higher this morning. European equities meanwhile, they're stending up 0:18:23.640 --> 0:18:26.560 four days slide is optimism over a potential downshift in 0:18:26.600 --> 0:18:30.080 Federal reserve rate hikes deflates in the face of economic headwinds. 0:18:30.240 --> 0:18:32.480 Who check the markets all day long here at Bloomberg 0:18:32.560 --> 0:18:34.879 Radio and U S and P futures, they're up about 0:18:34.920 --> 0:18:36.959 three points, up about a tenth of upper cent. Dow 0:18:37.080 --> 0:18:39.880 futures are little changed, and NASDAC futures up two tenths 0:18:39.920 --> 0:18:42.760 per cent or nineteen points ten. Your treasury down eight 0:18:42.760 --> 0:18:44.879 thirty seconds. You have three point four or four percent. 0:18:44.920 --> 0:18:47.399 They yield on the two year four point to seven percent, 0:18:47.800 --> 0:18:49.879 And I'm ex screwed. Oil is up one percent or 0:18:49.920 --> 0:18:53.040 seventy one cents at seventy two seventies three cents of barrel. 0:18:53.440 --> 0:18:55.920 And that's a Bloomberg business flash. Now here's Michael Barr 0:18:56.040 --> 0:18:58.240 with Moore on what's going on around the world. Michael, 0:18:58.240 --> 0:19:01.360 good morning, Good morning Karen. At least two more classified 0:19:01.400 --> 0:19:05.159 documents have been found in possession of former President Donald Trump. 0:19:05.560 --> 0:19:08.399 His lawyers say they discovered the material while searching a 0:19:08.480 --> 0:19:11.600 storage unit in West Palm Beach, Florida. The House is 0:19:11.640 --> 0:19:14.120 set to take a final vote on protections for same 0:19:14.160 --> 0:19:17.760 sex marriages. Today's vote will send the legislation to President 0:19:17.840 --> 0:19:21.240 Joe Biden. In the NBA, the Nets, Knicks and Celtics 0:19:21.240 --> 0:19:24.960 were winners, the Wizards and Warriors lost. In the NHL, 0:19:25.000 --> 0:19:28.879 the Rangers, Bruins and Capitals All one Global News twenty 0:19:28.880 --> 0:19:32.160 four hours a day on air and on Bloomberg Quicktake 0:19:32.440 --> 0:19:35.320 powered by more than twenty seven under journalists and analysts 0:19:35.400 --> 0:19:38.359 more than a hundred twenty countries. Michael Barr and this 0:19:38.560 --> 0:19:41.879 is Bloomberg. Nathan. Thanks Michael. It's five three on Wall Street. 0:19:41.880 --> 0:19:44.919 I'm Nathan Hagar. This is Bloomberg Daybreak and we're watching 0:19:44.960 --> 0:19:49.520 shares of biopharmaceutical company Prometheus Biosciences this morning. They're up 0:19:49.520 --> 0:19:52.280 about six percent in the pre market that they surged 0:19:52.440 --> 0:19:55.200 yesterday by an enter day record of more than two 0:19:55.320 --> 0:19:59.560 hundred percent. That's after the company announced two midstage studies 0:19:59.560 --> 0:20:03.520 and it's a experimental drug for inflammatory bowel disease. CEO 0:20:03.560 --> 0:20:06.520 Mark McKenna joined Paul Sweeney and Matt Miller on Bloomberg 0:20:06.600 --> 0:20:09.880 Radio yesterday to discuss the news. Let's listen to that conversation. Now, 0:20:10.359 --> 0:20:13.160 what a story. Talk to us first about the breakthrough. 0:20:13.560 --> 0:20:16.760 Today is a momentous day for patients who are suffering 0:20:16.800 --> 0:20:20.720 from IBD. This is a chronic disease where they wax 0:20:20.800 --> 0:20:24.240 in wayne to switching from drug to drug trying to 0:20:24.280 --> 0:20:29.119 find relief, and the upens this point. Most of the 0:20:29.200 --> 0:20:36.520 drugs in the category only provide ten to remission um. 0:20:36.600 --> 0:20:39.159 So we can do better for these patients and today, 0:20:39.160 --> 0:20:43.040 the data that we showcased was um uh you know, 0:20:43.960 --> 0:20:46.879 set a new high water march four drugs in this 0:20:46.960 --> 0:20:49.840 category across efficacy and safety. Can you give us the 0:20:49.920 --> 0:20:52.680 layman's version of how it works? There's three ways to 0:20:53.200 --> 0:20:57.600 to bring innovation to this category. Number one is UM 0:20:57.760 --> 0:21:00.560 novel targets where there's actually a genetic assot ciation to 0:21:00.600 --> 0:21:03.879 the disease. UM. You know, you everyone on the audience 0:21:03.880 --> 0:21:06.560 probably understand how important this is in other disease areas 0:21:06.560 --> 0:21:10.760 like oncology. UM. Number two with precision medicine being able 0:21:10.800 --> 0:21:13.199 to use the diagnostic to identify the right patient for 0:21:13.240 --> 0:21:16.640 the right drug. And the third is rational combinations being 0:21:16.640 --> 0:21:19.760 able like in oncology, being able to combine two different 0:21:19.760 --> 0:21:23.760 agents to get superior efficacy. What we showcase today is 0:21:23.800 --> 0:21:26.359 that on a mono therapy so meaning that the TL 0:21:26.440 --> 0:21:30.359 want a drug by itself, showed superior clinical remission the 0:21:30.400 --> 0:21:34.080 current UM standard of care UM most analysts were looking 0:21:34.119 --> 0:21:37.439 at TENDI fifteen percent clinical remission and we deliver twenty. 0:21:38.600 --> 0:21:41.360 This is a global for super control trial. And what 0:21:41.359 --> 0:21:44.080 we're doing is we're taking the playbook out of oncology 0:21:44.119 --> 0:21:46.440 and we have a diagnostic. So in addition to having 0:21:46.680 --> 0:21:49.720 a really great drug, we have a diagnostic that helps 0:21:49.760 --> 0:21:52.879 predict who's likely to respond to this drug. So you 0:21:52.880 --> 0:21:56.439 can just imagine. Um, you know, healthcare costs is always 0:21:56.440 --> 0:21:59.359 a focus, right, how do you actually bring down cost 0:21:59.680 --> 0:22:02.639 while to getting best the best patient care. So with 0:22:02.640 --> 0:22:05.000 with data in hand, we are moving forward to engage 0:22:05.040 --> 0:22:08.000