Speaker 1: Live from the Bloomberg Interactive Brooker Studios. This is is Bloomberg
Speaker 1: day Break for Thursday, December eighty two. Coming up to shower,
Speaker 1: Wall Street looks to snap a five day losing streak
Speaker 1: as recession fears pile up. Socks in Hong Kong rally
Speaker 1: under course at mask wearing requirements maybe scraped. Elon Musk's
Speaker 1: bankers consider new margin lungs to cut risky Twitter debt
Speaker 1: and disgrace. Crypto founder Sam Bankman Freed may soon appear
Speaker 1: on Capitol Hill. Governor hokel announces her plans for New
Speaker 1: Yorkers to avoid the Triple Demick. Plus, New Jersey Governor
Speaker 1: Murphy is out of the hospital, left of surgery. I'm
Speaker 1: Michael bar More ahead, I'm John Stas shown sports Aaron
Speaker 1: Judge resigned with the Yankees, the Mets at a picture
Speaker 1: wins for the Knicks, Nets, Rangers, and St. John. That's
Speaker 1: all trendy ahead on Bloomberg day Break on Bloomberg eleven
Speaker 1: three on New York, Bloomberg nine one, Washington, d C,
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and
Speaker 1: Francisco Sirius x M one nineteen and around the world.
Speaker 1: Old on Bloomberg Radio Dot Carmen via The Bloomberg Business.
Speaker 1: Good morning. I'm Nathan Hagar and I'm Karen Moscow. Any
Speaker 1: West Dock Index futures are higher this morning. It is
Speaker 1: five o one on Wall Street. We checked the markets
Speaker 1: all day long at Bloomberg Radio. Right now, SNP futures
Speaker 1: are up five points, or a tenth of upper cent.
Speaker 1: DAL futures are little change. NOWSDACK futures up two tents
Speaker 1: of upper cent or twenty three points. The decks in
Speaker 1: Germany little changed. Ten Your treasury down eight thirty seconds,
Speaker 1: held three point four or four percent. The yield on
Speaker 1: the two year is at four point to seven percent.
Speaker 1: Nathan Well Karen. Stocks are coming off five straight days
Speaker 1: of losses, and the biggest moves have been in the
Speaker 1: bond market. The spread between the two and tenure yields,
Speaker 1: a gauge often used to predict recessions, is it's most
Speaker 1: inverted since the nineteen seventies. David Harden, his chief investment
Speaker 1: officer at Summit Global Investments, Well, I think people are
Speaker 1: still a little bit focused on the possibility of this
Speaker 1: uh PAL pivot. I think that's in people's minds and hope,
Speaker 1: I think maybe they're wanting that under their Christmas tree,
Speaker 1: if you will. And and so I think this stats
Speaker 1: a little bit more focused on him playing Santa Claus
Speaker 1: for us, But in all reality, the bond market might
Speaker 1: have it right. They seem to get it right a
Speaker 1: lot more often, so we have to pay attention to
Speaker 1: that move some global investments, David Harden says the main
Speaker 1: focus for traders remains sharply on the FED well in
Speaker 1: Asia overnight, Nathan Hong Kong was the top performer in
Speaker 1: the region. The Hang Sang game more than three percent
Speaker 1: in today's session, and we get the recap from Bloomberg
Speaker 1: tivon Man in Hong Kong, Karen and Nathan. The region
Speaker 1: really only being lifted by one story in Hong Kong
Speaker 1: after reports the city is looking at scrapping rules that
Speaker 1: require masks at public venues, also cutting quarantine times from
Speaker 1: seven to five days. The reopening trade was once again
Speaker 1: on fire from a Calcasino's airlines to retail all up
Speaker 1: on the news. This clear preference on Chinese equities and
Speaker 1: M and B is quite clear now, with sources telling
Speaker 1: us Chinese regulators have asked the nation biggest insurers to
Speaker 1: buy bonds after retail investors offloaded cash from their fixed
Speaker 1: income investments in Hong Kong. I'm Von Man Bloomberg Daybreak.
Speaker 1: Al righty Von, thank you. Meantime in China, senior health
Speaker 1: advisors warning the vast majority of the population may eventually
Speaker 1: contract COVID. The government is now taking steps toward reversing
Speaker 1: its zero tolerance policy. The former deputy chief of China's
Speaker 1: disease control agency says six of the population could get
Speaker 1: infected in the first wave. Back here in the US,
Speaker 1: Nathan Tesla and Twitter are the names where watching bankers
Speaker 1: for Elon Musk are considering providing the billionaire with new
Speaker 1: margin loans tied to the companies, and we get the
Speaker 1: details live with Bloomberg Steve Rabbitport, Steve, good morning, Good morning, Karen,
Speaker 1: and Nathan. The margin loans are one of several options
Speaker 1: for Musk's backers to ease the burden of the thirteen
Speaker 1: billion dollars Twitter took on as part of his acquisition
Speaker 1: of the platform. The banks, led by Morgan Stanley, put
Speaker 1: up their own cash to supply the entire debt package.
Speaker 1: Because of a decline in credit markets. Musk's tumultuous start
Speaker 1: at the helm of Twitter didn't help the cause either.
Speaker 1: The company is estimated to face annual interest costs of
Speaker 1: about one point two billion dollars if the current debt
Speaker 1: structure remains in place. Live in New York, I'm Steve
Speaker 1: Rappaport Bloomberg Daybreak. Thanks Steve, turning to the crypto space.
Speaker 1: We could soon get more information on the epic collapse
Speaker 1: of f t X. Disgraced founder Sam Bankman Freed may
Speaker 1: appear on Capitol Hill as soon as next week. Details
Speaker 1: from Bloomberg's Amy Morris in our newsroom in Washington. The
Speaker 1: Senate Banking Committee has asked Bankman Freed to appear on
Speaker 1: Capitol Hill December four. Lawmakers want more information about the
Speaker 1: collapse of fd X, and they want to know quote,
Speaker 1: how client funds were misappropriated, how clients were blocked from
Speaker 1: withdrawing their own money, and how you orchestrated a cover up.
Speaker 1: The House Financial Services Committee hearing is set for the thirteen.
Speaker 1: Bank Man Freed had said he might not be ready
Speaker 1: to testify by then. Chair Maxine Water says a subpoena
Speaker 1: is quote definitely on the table in Washington. I'm maybe
Speaker 1: more as Bloomberg Daybreak, right, Amy, thank you. That's not
Speaker 1: the only news on disgraced former ecuatives this morning. Late yesterday,
Speaker 1: former Theonis President in chief operating officer Ramish Sunny Balwani
Speaker 1: was sentenced to prison, and Bloomberg said, Baxter has that story.
Speaker 1: The sentence coming from US District Judge Edward Davola and
Speaker 1: San Jose thirteen years for defrauding investors and patients of
Speaker 1: Pharaonis Bwana ran the blood testing startup alongside its founder
Speaker 1: and chief executive officer, Elizabeth Holmes. The sentence is very
Speaker 1: close to what prosecutors had asked for a term of
Speaker 1: fifteen years. The judge said he'll decide later how much
Speaker 1: restitution must be paid. The government has asked for both
Speaker 1: to be ordered to pay about eight hundred million dollars.
Speaker 1: In San Francisco, I'm at Baxter Bloomberg daybreak, all right,
Speaker 1: and thank you. In the labor market, inflation plus a
Speaker 1: battle for talent and now cost cutting efforts are making
Speaker 1: for an interesting picture of corporate America. Now we're learning
Speaker 1: ex On Mobile is awarding its US employees pay increases
Speaker 1: above inflation. Just weeks after posting record profit. Bloomberg's Charlie
Speaker 1: Pellett reports it underscores just how strong two has been
Speaker 1: for the fossil fuel industry, while other sectors like technology
Speaker 1: and finance are cutting jobs. Sources tell Bloomberg workers will
Speaker 1: receive an average salary bump of nine on. Those who
Speaker 1: got promoted will see an additional five percent increase. A
Speaker 1: spokeswoman four X on Mobile says in aggregate it is
Speaker 1: Exxon's biggest salary award in fifteen years. In New York,
Speaker 1: Charlie Penalty Bloomberg daybreak. All right, Charlie, thanks, and it's
Speaker 1: a different labor story at the New York Times. More
Speaker 1: than a thousand employees are preparing to stage a one
Speaker 1: day walk out today. It escalates a standoff with management
Speaker 1: over a stalled contract. A New York Times spokesperson said
Speaker 1: the company was disappointed that the news guild was threatening
Speaker 1: to strike again. Futures are higher this morning, with S
Speaker 1: and P futures up seven points. Straight ahead, your latest
Speaker 1: of local headlines, plus a check of sports. And this
Speaker 1: is Bloomberg. Thanks hearing. It's five oh seven on Wall Street.
Speaker 1: We're fifty one degrees in central Park should be nice today, Sonny,
Speaker 1: and mild highs in the low fifties. I'm gonna get
Speaker 1: down to the mid thirties tonight. It's gonna be a
Speaker 1: little cooler as we head into the weekend. Now, let's
Speaker 1: bringing Michael bar with a look at what else is
Speaker 1: going on in New York and around the world. Good morning, Michael,
Speaker 1: Good morning Nathan. Governor Kathy Hocle is pushing efforts to
Speaker 1: keep New Yorkers healthy with winter in the holidays just ahead.
Speaker 1: Hocal says people need to take precautions because COVID cases
Speaker 1: are ticking up alongside R s V and children and
Speaker 1: influenza are not all the woods. The threat is real
Speaker 1: and we have cases. I remember this. We're watching this intensely.
Speaker 1: The winter is often a tough time for the most vulnerable,
Speaker 1: but Hocal promises New York will be ready. Complacency is
Speaker 1: our enemy. That is my biggest fear, that people are
Speaker 1: so desensitized and feeling that well, it is the norm. Yes,
Speaker 1: it has become our norm, but it does not have
Speaker 1: to be the norm that everybody gets sick. Governor Hocal
Speaker 1: says the state will provide to sting vaccines and nearly
Speaker 1: eight thousand ventilators said to be sent to hospitals that
Speaker 1: need them. Mayor Eric Adams says the system to provide
Speaker 1: affordable housing is broken, not just in New York City
Speaker 1: but all over the country. Adam, speaking at a faith
Speaker 1: based summit in New York, says, we all just need
Speaker 1: to stop kicking the can down the road. There's no
Speaker 1: desire to come and bring you together and say you
Speaker 1: have all of this property, why don't you come with
Speaker 1: a real housing plan. There's no desire to fix it.
Speaker 1: People are making money up the dysfunctionality of our cities
Speaker 1: across the America. A frustrated Adam says, we know at
Speaker 1: the beginning of the year we are going to fail
Speaker 1: a large number of people, and they're primarily black and
Speaker 1: brown and immigrants. The White House as President Joe Biden
Speaker 1: will announced a thirties six billion dollar bailout for the
Speaker 1: Central States Pension Fund, helping to show up one of
Speaker 1: the nation's biggest multi employer plans. The President angered some
Speaker 1: of his labor allies last week by signing legislation imposing
Speaker 1: a contract he personally helped to negotiate between freight railroads
Speaker 1: and their union's averting a possible strike that threatened to
Speaker 1: cripple the economy. However, four of the twelve unions involved
Speaker 1: rejected the contract. New Jersey Governor Phil Murphy had minor
Speaker 1: surgery yesterday and is recuperating at home. The Governor's office
Speaker 1: did not specify what the surgery was for, but said
Speaker 1: it was a medical procedure. Officials also said it was
Speaker 1: not related to the cancer. It's tumor. Murphy had removed
Speaker 1: from Miss Kidney. In Global News twenty four hours a
Speaker 1: day on air and on Bloomberg Quicktake, powered by more
Speaker 1: than twenty seven hundred journalist and analysts more than a
Speaker 1: hundred twenty countries. Michael barrb this is Bloomberg. Ne alright, Michael,
Speaker 1: thank you almost five ten on Wall Street time for
Speaker 1: the Bloomberg Sports Update, brought to you by twice State Out.
Speaker 1: Good morning, John Stosh hour, Good morning Nathan. After the
Speaker 1: news that Aaron Judge had resigned with the Yankees, some
Speaker 1: details and merge about how it all went down. Believed
Speaker 1: to be a two horse raised between the Yanks and Giants,
Speaker 1: the San Diego Padres swooped in at the eleventh hour
Speaker 1: offered Judge are reported ten years, four hundred million dollars
Speaker 1: that got the attention of Yankee owner house Kleinebrenner, who
Speaker 1: was vacationing in Italy. He got on the phone with
Speaker 1: Judge up to his offer to the nine years, three
Speaker 1: hundred and sixty million that got the deal done. Yankee
Speaker 1: GM Brian Cashman said Steinbrenner was the Marianna Rivera of
Speaker 1: the negotiations. The Padres then used some of that money
Speaker 1: last night to sign Xander Bogart's away from the Red
Speaker 1: Sox for eleven years, two hundred and eighty million Winter
Speaker 1: meetings and with eighteen players having signed contracts worth a
Speaker 1: total of one point six billion, the Mets out of
Speaker 1: the picture of veteran Jose Quintana. This will be his
Speaker 1: seventh teen He pits to an e r A under three.
Speaker 1: Last season, Nick's all of a sudden playing defense. They
Speaker 1: had allowed over a hundred points at each of the
Speaker 1: first twenty three games, they allowed under ninety in the
Speaker 1: last two. They've beat Atlanta at the Garden one thirteen
Speaker 1: to eighty nine. Big game for Julius Randall thirty four points,
Speaker 1: seventy rebounds, five assists at Barkley's nets made it five.
Speaker 1: The last six beat Charlotte one two to one, sixteen
Speaker 1: Pymrie irving thirty three points, Kevin Durant had twenty nine
Speaker 1: and Seth Prairie twenty and the three of them together
Speaker 1: had twenty three assists. Big third period for the Rangers,
Speaker 1: they scored four times and a span of less than
Speaker 1: six minutes, and they beat Vegas, the top team in
Speaker 1: the West, five to one. Big East opener for St.
Speaker 1: John's and eighty six sixty seven win over De Paul
Speaker 1: John stash Award Bloomberg Sports Nathan, Thank you John, and
Speaker 1: Bloomberg Sports was brought to you by Audie. Don't let
Speaker 1: someone else drive off and the OUTI model you've always wanted.
Speaker 1: Visit your local Tri state Audie dealer to get behind
Speaker 1: the wheel of yours today, or visit Outie Offers dot
Speaker 1: com for more information. Five eleven on Wall Street. Just
Speaker 1: ahead on Bloomberg Daybreak, we'll get more on China's moves
Speaker 1: away from COVID zero. First SMP futures are up four points,
Speaker 1: staff futures up nine NASTAC futures are higher by twenty
Speaker 1: four points. The tenure treasury is down seven thirty seconds
Speaker 1: deal three point four or four percent yield on the
Speaker 1: two year four point to seven percent. That is an
Speaker 1: inversion of eighty three basis points. It's five twelve on
Speaker 1: Wall Street. This is Bloomberg Daybreak, and we want to
Speaker 1: turn out to what's happening in China and the optimism
Speaker 1: we're seeing in markets there, with even more signs that
Speaker 1: the government in Beijing is putting COVID zero in the past.
Speaker 1: We're joined now live from Hong Kong by Bloomberg's Rebecca
Speaker 1: Chung Wilkins. Rebecca, it's good to have you back with
Speaker 1: us this morning. I guess the latest we're hearing from
Speaker 1: top health officials in China is a warning about potentially
Speaker 1: the vast majority of the country getting infected. It sounds
Speaker 1: like a pretty significant, at least rhetorical change from what
Speaker 1: we've been hearing from the Chinese government in the past. Absolutely,
Speaker 1: it's a very very significant shift, and it's really the
Speaker 1: first time that we've seen very high level officials in
Speaker 1: this case that a former deputy chief of China's CDC
Speaker 1: talking about the potentials of RESTful ramifications and and his
Speaker 1: estimates are quite strikingly high. So He's saying, just in
Speaker 1: the first wave of infections, which essentially sort of we
Speaker 1: are entering right now, about six percent of the population
Speaker 1: is going to be infected with some variant of COVID.
Speaker 1: And just to put that into context, um in the
Speaker 1: US that that the estimate is currently for all of
Speaker 1: the waves is estimated around fifty So it is very,
Speaker 1: very high. And it really does underscore the challenge for
Speaker 1: China here, which is whether or not it's health care
Speaker 1: system can really support the spread of the virus so
Speaker 1: quickly through its population. Well, what could this new stance
Speaker 1: potentially mean for China's economy. I mean, we're getting some
Speaker 1: pretty strong warnings from some of the biggest firms on
Speaker 1: Wall Street about what a move away from COVID zero
Speaker 1: could mean in terms of the potential for you know,
Speaker 1: temporary shutdowns of businesses that sort of thing. Yes, indeed,
Speaker 1: I mean disruption from COVID outbreak, particularly knockdowns. We already
Speaker 1: sort of soared through the very weak import export data,
Speaker 1: both of which was was weaker than expect did UM
Speaker 1: and and that really is going to continue longer term accord,
Speaker 1: The hope is that it will offset the sort of
Speaker 1: longer consequences of COVID and HATS ex center which it
Speaker 1: will be weighed on the Chinese economy, particularly on consumer
Speaker 1: demand and production as well. Um the one sort of
Speaker 1: bright spot here is that if China does effectively move
Speaker 1: away from lockdown, which has been the thing that really
Speaker 1: has a sort of styy need production, when that hit
Speaker 1: certain factories that could actually eventually sort of lead to
Speaker 1: us sustained um sustained level of production and level out,
Speaker 1: which we haven't really seen China trying to do at
Speaker 1: a sort of countrywide level so far. Notwithstanding the macroeconomic
Speaker 1: potential here, it was really interesting overnight to see the
Speaker 1: reaction in the market, particularly with the Hang Sing in
Speaker 1: Hong Kong jumping three point four per cent. Guess that's
Speaker 1: related as well to some restrictions being used in the
Speaker 1: city right, yes, indeed, so Hong Kong. Although most of
Speaker 1: the restrictions can be lifted, we still have a masked
Speaker 1: mandate both indoors and outdoors. So there is this speculation
Speaker 1: local media as reported citing one one source, that we
Speaker 1: may be seeing a lifting of the mask mandates outside
Speaker 1: and some of the testing regulations may be lifted, but
Speaker 1: there's still quite rigorous testing when you re enter Hong Kong.
Speaker 1: Um there's still mandatory testing when you arrived, for example,
Speaker 1: and you have to continue to go to these centers
Speaker 1: to test. So that is how driving these moves. I
Speaker 1: will say that as much as we're seeing kind of
Speaker 1: Chinese assets in Hong Kong assets rippling of boring, they
Speaker 1: tend to be trading on the rumors. So we're having
Speaker 1: rumors of ripping through the market that this is going
Speaker 1: to be listed or that's going to be lifted, and
Speaker 1: then when we actually see the announcement, it's somehow not
Speaker 1: quite meeting those expectations, so then we saw a bit
Speaker 1: of a pull back in the sell off. So that's
Speaker 1: so far has sort of been the characteristics of trading
Speaker 1: over the last couple of days, I'd say, But in
Speaker 1: terms of the announcements that we're hearing from the Chinese
Speaker 1: mainland and the warnings from the health officials here, I
Speaker 1: mean that sort of highlights how far behind I think
Speaker 1: China is in terms of the way they're going about
Speaker 1: this virus compared to the rest of the world, which
Speaker 1: has been warning their populations about the potential for people
Speaker 1: being infected. Majorities being infected for quite some time. Yeah,
Speaker 1: isn't it remarkable? I mean, it is the thing that
Speaker 1: always comes up when I when I talk to people
Speaker 1: or even you know, this year was the first year
Speaker 1: I visited overseas in two years after really strict quarantine
Speaker 1: measures in Hong Kong, and it's such a different reality
Speaker 1: that people are living in, particularly in mainland China, and
Speaker 1: whether it has been such stringent restrictions on daily life.
Speaker 1: It was just a few months ago that Shanghai City
Speaker 1: twenty six million would locked down for really two months
Speaker 1: and sometimes for longer for some people. So you know,
Speaker 1: the sort of speak to some of that frustration we
Speaker 1: saw with the protest, where a lot of visit of
Speaker 1: anger over these policies have bubbled over, and not just
Speaker 1: sort of in Beijing or Shanghai, but really in these
Speaker 1: sort of major cities across China. So it is there
Speaker 1: is this also a social unrest element where that China
Speaker 1: is a lengthy, protracted experience of COVID restriction measures is
Speaker 1: now starting also to weigh on morale. All right, Rebecca
Speaker 1: Chung Wilkins with us live from Hong Kong from Bloomberg News.
Speaker 1: Thank you, as always for keeping US up to date
Speaker 1: on what's happening in China. Of course, we continue to
Speaker 1: watch the world's second largest economy very closely in the
Speaker 1: implications of what their China or what their COVID stance
Speaker 1: could mean, not just for the domestic economy in China,
Speaker 1: but more broadly around the world. Looking ahead to the
Speaker 1: market open this morning, SMP futures are up three points now,
Speaker 1: Future is down one now and DASTACK futures are higher
Speaker 1: by nineteen points, so pretty much little changed across the board.
Speaker 1: You're listening to Bloomberg Daybreak, markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com, the
Speaker 1: Bloomberg Business Land, at Bloomberg Victap. This is a Bloomberg
Speaker 1: Business Flash and I'm Karen Moscow. US dot Index futures
Speaker 1: are higher this morning. European equities meanwhile, they're stending up
Speaker 1: four days slide is optimism over a potential downshift in
Speaker 1: Federal reserve rate hikes deflates in the face of economic headwinds.
Speaker 1: Who check the markets all day long here at Bloomberg
Speaker 1: Radio and U S and P futures, they're up about
Speaker 1: three points, up about a tenth of upper cent. Dow
Speaker 1: futures are little changed, and NASDAC futures up two tenths
Speaker 1: per cent or nineteen points ten. Your treasury down eight
Speaker 1: thirty seconds. You have three point four or four percent.
Speaker 1: They yield on the two year four point to seven percent,
Speaker 1: And I'm ex screwed. Oil is up one percent or
Speaker 1: seventy one cents at seventy two seventies three cents of barrel.
Speaker 1: And that's a Bloomberg business flash. Now here's Michael Barr
Speaker 1: with Moore on what's going on around the world. Michael,
Speaker 1: good morning, Good morning Karen. At least two more classified
Speaker 1: documents have been found in possession of former President Donald Trump.
Speaker 1: His lawyers say they discovered the material while searching a
Speaker 1: storage unit in West Palm Beach, Florida. The House is
Speaker 1: set to take a final vote on protections for same
Speaker 1: sex marriages. Today's vote will send the legislation to President
Speaker 1: Joe Biden. In the NBA, the Nets, Knicks and Celtics
Speaker 1: were winners, the Wizards and Warriors lost. In the NHL,
Speaker 1: the Rangers, Bruins and Capitals All one Global News twenty
Speaker 1: four hours a day on air and on Bloomberg Quicktake
Speaker 1: powered by more than twenty seven under journalists and analysts
Speaker 1: more than a hundred twenty countries. Michael Barr and this
Speaker 1: is Bloomberg. Nathan. Thanks Michael. It's five three on Wall Street.
Speaker 1: I'm Nathan Hagar. This is Bloomberg Daybreak and we're watching
Speaker 1: shares of biopharmaceutical company Prometheus Biosciences this morning. They're up
Speaker 1: about six percent in the pre market that they surged
Speaker 1: yesterday by an enter day record of more than two
Speaker 1: hundred percent. That's after the company announced two midstage studies
Speaker 1: and it's a experimental drug for inflammatory bowel disease. CEO
Speaker 1: Mark McKenna joined Paul Sweeney and Matt Miller on Bloomberg
Speaker 1: Radio yesterday to discuss the news. Let's listen to that conversation. Now,
Speaker 1: what a story. Talk to us first about the breakthrough.
Speaker 1: Today is a momentous day for patients who are suffering
Speaker 1: from IBD. This is a chronic disease where they wax
Speaker 1: in wayne to switching from drug to drug trying to
Speaker 1: find relief, and the upens this point. Most of the
Speaker 1: drugs in the category only provide ten to remission um.
Speaker 1: So we can do better for these patients and today,
Speaker 1: the data that we showcased was um uh you know,
Speaker 1: set a new high water march four drugs in this
Speaker 1: category across efficacy and safety. Can you give us the
Speaker 1: layman's version of how it works? There's three ways to
Speaker 1: to bring innovation to this category. Number one is UM
Speaker 1: novel targets where there's actually a genetic assot ciation to
Speaker 1: the disease. UM. You know, you everyone on the audience
Speaker 1: probably understand how important this is in other disease areas
Speaker 1: like oncology. UM. Number two with precision medicine being able
Speaker 1: to use the diagnostic to identify the right patient for
Speaker 1: the right drug. And the third is rational combinations being
Speaker 1: able like in oncology, being able to combine two different
Speaker 1: agents to get superior efficacy. What we showcase today is
Speaker 1: that on a mono therapy so meaning that the TL
Speaker 1: want a drug by itself, showed superior clinical remission the
Speaker 1: current UM standard of care UM most analysts were looking
Speaker 1: at TENDI fifteen percent clinical remission and we deliver twenty.
Speaker 1: This is a global for super control trial. And what
Speaker 1: we're doing is we're taking the playbook out of oncology
Speaker 1: and we have a diagnostic. So in addition to having
Speaker 1: a really great drug, we have a diagnostic that helps
Speaker 1: predict who's likely to respond to this drug. So you
Speaker 1: can just imagine. Um, you know, healthcare costs is always
Speaker 1: a focus, right, how do you actually bring down cost
Speaker 1: while to getting best the best patient care. So with
Speaker 1: with data in hand, we are moving forward to engage
Speaker 1: with the FDA and other regulatory bodies outside the US
Speaker 1: and we'll initiate phase three studies UM and next year. UM.
Speaker 1: So we need to conduct phase three studies and you
Speaker 1: see in crowns and we look, we look to activate
Speaker 1: those next year. What's the next step for a company
Speaker 1: like yours when you have this kind of breakthrough time
Speaker 1: to market, path to market? How does that all work
Speaker 1: for a company like yours? Yeah, so we haven't guided
Speaker 1: this specific time to market, but what I would say
Speaker 1: is that most analysts have us UH commercializing the drug
Speaker 1: in the second half of twenty six the first half
Speaker 1: of twenty seven. UM. Look, we we set all along
Speaker 1: UM that we have two objectives. Number one is we
Speaker 1: want to get these drugs to patients as fast as possible. UM.
Speaker 1: We believe that we are the potentially the best hope
Speaker 1: to bring meaningful clinical omission to these patients. Number two
Speaker 1: is we want to maximize shareholder value, and we have
Speaker 1: a a very strong balance sheet. We are well positioned
Speaker 1: to be able to execute on the phase three independently.
Speaker 1: With this data in hand, it really sets us apart
Speaker 1: from other t O one A programs as well as
Speaker 1: the rest of quite frankly, the rest of the class.
Speaker 1: And that was Prometheus Biosciences CEO Mark McKennis speaking with
Speaker 1: Bloomberg's Paul Sweeney and Matt Miller. You can catch that
Speaker 1: full interview on the tape podcast as well as on
Speaker 1: Bloomberg dot com and always on the Bloomberg terminal. Again.
Speaker 1: Shares of Prometheus Biosciences up six percent in early trading.
Speaker 1: Bloomberg Daybreak is brought to you by SEI. Built on
Speaker 1: advanced technologies and fifty years of innovation, SEI offers asset
Speaker 1: managers a comprehensive and flexible operations outsourcing platform. Go to
Speaker 1: se i C dot com slash managers straight ahead. Here
Speaker 1: on Bloomberg Daybreak, we'll get you this morning's top stories,
Speaker 1: plus your local headlines and a check of markets. But
Speaker 1: first let's bring in Bloomberg meteorologist Bob Carolin for Rob
Speaker 1: Carolyn for a look at the high pressure is pushed
Speaker 1: close enough to the area that will turn partly sunny.
Speaker 1: Today will find temperatures between fifty and fifty five. It
Speaker 1: will be partly cloudy close to thirty five over night
Speaker 1: twenties in the suburbs. Tomorrow partial sun of locol or
Speaker 1: high forty five clouds, a few peaks of sunshine on
Speaker 1: Saturday for the clouds went out, hies near forty five
Speaker 1: and rain or wet snow possible times on Sunday forty five.
Speaker 1: I'm Rob Carolyn with your weekend forecast on Bloomberg eleven
Speaker 1: three oh broadcasting live from the Bloomberg Interactive Broker's studio
Speaker 1: in New York. Bloomberg E living free to Washington, d C,
Speaker 1: Bloomberg nine nine one to Boston, Bloomberg one O six
Speaker 1: one to San Francisco, Bloomberg N sixty to the country,
Speaker 1: Sirius XM Chado one nineteen and around the globe the
Speaker 1: Bloomberg Business app and Bloomberg Radio dot Com. This is
Speaker 1: Bloomberg Daybreak. It's on Wall Street. Good Morning. I'm Nathan
Speaker 1: Hagar and I'm Karen Moscow, and we're about four hours
Speaker 1: away from the open of US trading. Let's get you
Speaker 1: have to date on the news. You need to know
Speaker 1: what this sour u s Dock index future is little
Speaker 1: change to hire this morning. Stocks coming off five straight
Speaker 1: days of losses and the spread between the two year
Speaker 1: and ten year yields is the most inverted since the
Speaker 1: nineties seventies. PGM Chief investment strategist in head of Global Bonds,
Speaker 1: Robert Tipps says he sees moderate Arnie's risk on the horizon,
Speaker 1: which is skewing the balance away from equities. Normally, you'd
Speaker 1: have equity returns expected to be much higher than bonds.
Speaker 1: The bonds have really been rerated here. The Fed is
Speaker 1: going to need to be careful not to torpedo the economy,
Speaker 1: but they know that. PGMs Robert Tipps says he expects
Speaker 1: the bond market to continue performing well as the Fed
Speaker 1: raises rates well in age overnight care in Hong Kong
Speaker 1: was the top performer in the region. The Hang Sang
Speaker 1: Game more than three percent in the session. That's after
Speaker 1: local media reported Hong Kong's considering scrapping its outdoor mask
Speaker 1: mandate and easing testing requirements. Well Nathan back here in
Speaker 1: the US, Twitter and Tesla are back in the news.
Speaker 1: Bankers for Elon Musk are considering providing the billionaire with
Speaker 1: new margin loans Bloomberg. Steve Rappaport joins US Live with
Speaker 1: more on that story, and good morning, Steve, Good morning,
Speaker 1: Karen and Nathan. Margin loans backed by Tesla stock is
Speaker 1: one option for banks to ease the high interest debt
Speaker 1: Twitter took on when Musk acquired the company. Dwindling credit
Speaker 1: markets combined with Musk's bumpy start as Twitter CEO, forced
Speaker 1: bankers to cover the thirteen billion dollar debt with their
Speaker 1: own cash, sources tell Bloomberg. Talks are focused on ways
Speaker 1: to replace the three billion dollars of unsecured debt, on
Speaker 1: which Twitter pays nearly twelve percent interest. Live in New York,
Speaker 1: I'm Steve Rappaport, Bloomberg Day Break. All right, Steve, thank you.
Speaker 1: Another corporate note this morning. Former Tharonos President and Chief
Speaker 1: operating officer Remesh Sonny Baldwani has been sentenced to thirteen
Speaker 1: years in present. It comes after the company's founder, Elizabeth
Speaker 1: Holmes was sentenced to eleven years for fraud. Will turning
Speaker 1: to another disgraced venture here Nathan f t X founder
Speaker 1: Sam Bankman freed maybe appearing on Capitol Hill next week.
Speaker 1: Republican Arkansas Representative french Hill says having Sam Bankman free
Speaker 1: to speak with lawmakers is a priority for the next Congress.
Speaker 1: Patrick McKendry, the ranking Republican, and Maxine Waters, the chair
Speaker 1: of the committee. They want him here personally. If he's
Speaker 1: got time to interview a deal book with Andrew Rawls
Speaker 1: Sorkin and make all these Twitter appearances, he can appear
Speaker 1: before our committee. And we'll bring you more of our
Speaker 1: interview with Arkansas Congressman french Hill later in the program.
Speaker 1: And again. Futures this morning they are high er s
Speaker 1: and p future is a tenth of a percent of
Speaker 1: five points this morning down. Futures that will change. Nasdaq
Speaker 1: futures have a quarter percent, or about twenty seven points.
Speaker 1: The decks in Germany's down the most two tenths of
Speaker 1: a percent ten Your treasury down seven thirty seconds, you know,
Speaker 1: three point four or four percent, and they yield on
Speaker 1: the two year four point to seven percent. Nine X
Speaker 1: Screwed oil is a three quarters of a percent of
Speaker 1: fifty four cents at seventy two fifty five cents of
Speaker 1: barrel and comex go down two tenths of a percent.
Speaker 1: Straight ahead, we have your latest local headlines plus the
Speaker 1: check of sports, and this is Bloomberg. I'm scaring one
Speaker 1: on Wall Street. Let's bring in Michael bar for some
Speaker 1: of those local headlines in New York and what's going
Speaker 1: on around the world. Michael Nathan. New York Governor Kathy
Speaker 1: hokels as complacency is our enemy when it comes to
Speaker 1: fighting COVID, the flu, and RSV. Step up this time,
Speaker 1: Step up in December and January, get us through February,
Speaker 1: Get us through the worst times by just you can
Speaker 1: kind of see somebody that's in a vulnerable situation. Just
Speaker 1: get tested. Governor HOCl says New York will be ready
Speaker 1: with testing, vaccines and ventilators. New Jersey Governor Phil Murphy
Speaker 1: is recovering at home after his office said that he
Speaker 1: had minor surgery yesterday. The governor's office would not say
Speaker 1: what the procedure was, except that the surgery was not
Speaker 1: related to a cancers tumor he had removed. In Mayor
Speaker 1: Eric Adams says the system to provide affordable housing is broken.
Speaker 1: Not just in New York City but all over. Adams
Speaker 1: spoke at a faith based summit in New York and
Speaker 1: all we do is kick the can down the road.
Speaker 1: We know at the beginning of the year we want
Speaker 1: to fail his a large number of people, and they're
Speaker 1: primarily black and brown and immigrants, and we know it.
Speaker 1: A frustrated Adams says, we spend billions of taxpayer dollars
Speaker 1: for the broken issues we created. Months after the FBI
Speaker 1: seized records marked classified from Mara Lago, more sensitive documents
Speaker 1: is surfacing, this time in a storage unit said to
Speaker 1: be used by former President Trump in Florida. Loyola Law
Speaker 1: University professor Lorie Levinson it is clear that the judges
Speaker 1: have gone to Trump and his lawyers and said search again,
Speaker 1: look harder because National Archives does believe that there are
Speaker 1: more documents out there. Searches were reportedly conducted around Thanksgiving.
Speaker 1: The House Ethics Committee is investigating Democratic Representative Alexandria Ocassio Cortes.
Speaker 1: They did not say, though, for what alleged, if any,
Speaker 1: violations of Congressional rules. Globally used twenty four hours a
Speaker 1: day on air and on Bloomberg Quick Take powered by
Speaker 1: more than journalist and analysts in more than a hundred
Speaker 1: twenty countries. I'm Michael Barrt. This is Bloomberg, Nathan. Thanks Michael,
Speaker 1: by thirty three on Wall Street Time for the Bloomberg
Speaker 1: Sports Update, brought to you by Try State. How do
Speaker 1: you Here's John Stas show. All right avon. Yankee fans
Speaker 1: obviously relieve with the news of Aaron Judges staying in
Speaker 1: New York, and now they want to know who might
Speaker 1: the Yanks add. They need a left fielder where it
Speaker 1: is that might be the Pirates, Brian Reynolds or a
Speaker 1: return of Andrew Benn and Tendy. They'd like to add
Speaker 1: a starting pitcher. Carlos Rodon has been mentioned, but he's
Speaker 1: looking for a lot. Six years, hundred eighty million. The
Speaker 1: money being thrown around is stagger and much was made
Speaker 1: of Judge being the poster boy for betting on yourself
Speaker 1: by turning the Yanks down last spring. He ended up
Speaker 1: with almost a hundred fifty million dollars. More, how about
Speaker 1: Xander Bogart's The Red Sox last spring offered him six years,
Speaker 1: a hundred and twenty million, and like Judge, he passed
Speaker 1: had a strong season. Boguards signed last night with San
Speaker 1: Diego eleven years, two hundred and eighty million. Red Sox
Speaker 1: lost Boguards, but they signed veteran to lead or Kenley
Speaker 1: Jansen and Japanese outfielder Massa Taka Yoshida. The Mets signed
Speaker 1: veteran pitcher pose A Kintana for two years. He's about
Speaker 1: to turn thirty four. Last season, Quintana had the lowest
Speaker 1: home run aloud rate in the National League. Nix and
Speaker 1: Nets both one at home. Knix over Atlanta one thirteen
Speaker 1: to eighty nine. They held the Hawks to thirty eight
Speaker 1: percent shooting for Julius Randall thirty four points seventeen rebounds.
Speaker 1: The Nets got thirty three from Kyrie Irving and twenty
Speaker 1: nine for Kevin Duran. They beat Charlotte one sixteen Rangers
Speaker 1: in Vegas one one third period. Rangers scored four times
Speaker 1: because the Banda Dad the first and last, both on
Speaker 1: the power play, three goals in a span of under
Speaker 1: two minutes. The Rangers won five to one. St. John's
Speaker 1: beat De Paul eight six sixty seven. John Stashower, Bloomberg Sports,
Speaker 1: Nathan all Right, John, thank you, Bloomberg Sports. Is brought
Speaker 1: to you by Audie. Don't let someone else drive off
Speaker 1: in the Audi model you've always wanted. Visit your local
Speaker 1: Try State Audie dealer to get behind the wheel of
Speaker 1: yours today, or visit Autie Offers dot com for more information.
Speaker 1: It's five on Wall Street time for the Tri State
Speaker 1: Business Report with Bloomberg's ed Corey Hudson Yards, Developer Related
Speaker 1: Companies is proposing a resort with guest rooms. The plan
Speaker 1: is part of a bid for one of New York's
Speaker 1: gaming licenses. Plans also call for about twenty restaurants, a nightclub, theater,
Speaker 1: and casino with the second phase of the project on
Speaker 1: Manhattan's far West Side. Manhattan apartment rants went up a
Speaker 1: little in November after three months of declines, but the
Speaker 1: market is not returning to the hyper competitive heights of
Speaker 1: the summer. Median rent rose about two percent from October
Speaker 1: to four thousand and ninety five dollars, third highest level
Speaker 1: ever recorded by Biller, Samuel and Douglas Eleman. Real Estate
Speaker 1: India's Tata Consultancy is accused of bias against workers who
Speaker 1: were not South Asian or are US born. The lawsuit
Speaker 1: was filed Wednesday in the U S district cord for
Speaker 1: the District of New Jersey by a former Tata employee.
Speaker 1: It's similar to prior cases against the I T Services Giant.
Speaker 1: Back you, Bloomberg Tri State Business Report. I did, Corey
Speaker 1: alright ed? Thank you now for update on small businesses.
Speaker 1: Let's go to Bloomberg. Slee Sa Mateo with the Bloomberg
Speaker 1: Small Business Report, brought to you by Dell. I'm Lisa Mateo.
Speaker 1: Some relief for businesses affected by natural disasters. The US
Speaker 1: Small Business Administration says it will waive the interest rate
Speaker 1: for the first year on new disaster loans and extend
Speaker 1: the initial payment deferment period automatically to twelve months. That
Speaker 1: change covers all approved disaster loans declared on or after
Speaker 1: September one through September. Hiring is on the rise. The
Speaker 1: Sea Biz Small Business Employment Index increased just over half
Speaker 1: a percent in November, reversing a downward trend for the
Speaker 1: previous three months. The company credits the growth to strength
Speaker 1: and consumer spending and small business owners in Florida are
Speaker 1: looking forward to the Formula one Grand Prix and Miami Gardens.
Speaker 1: Last year, the event proved a helpful boost to their
Speaker 1: profits as it drew in more than two hundred and
Speaker 1: forty thousand visitors this year. It will take place at
Speaker 1: hard Rock Stadium in May. And that's the Bloomberg Small
Speaker 1: Business Report. Okay, Lisa, thank you for that. Let's take
Speaker 1: a look at these markets now. Futures kind of quiet
Speaker 1: this morning. The action remains in the bond space, with
Speaker 1: SMP futures right now up five points, Stown futures up eleven.
Speaker 1: That's little changed. In NASDAC futures getting just a little
Speaker 1: bit of ground right now, they're up twenty seven points.
Speaker 1: That's a gain of almost a quarter percent. Tenure Treasury
Speaker 1: is down eight thirty seconds. The three point for four
Speaker 1: percent on the benchmark yield on the two year four
Speaker 1: point to seven percent two ten spread inverted by eighty
Speaker 1: three and a half basis points. Name Excrudes up eight
Speaker 1: tenths percent at seventy two fifty six of barrel and
Speaker 1: Comics Gold is down almost two tenths percent at seventy announced.
Speaker 1: We'll get a fuller look at this market next. S D. Dwack,
Speaker 1: the chief investment officer at Flow Bank, joins us. Next
Speaker 1: to this is Bloomberg Markets headlines and breaking news. Twenty
Speaker 1: four hours a day at Bloomberg dot Com, the Bloomberg
Speaker 1: Business Outland at Bloomberg Quick Take, this is a Bloomberg
Speaker 1: business lash and I'm Karen Moscow and us on the index.
Speaker 1: Futures are higher this morning. European equities, meanwhile, are extending
Speaker 1: a four days slide as optimism over a potential downshift
Speaker 1: in federal reserve rate hikes deflates in the face of
Speaker 1: some economic headwinds. You check the markets all day long
Speaker 1: on Bloomberg Radio. Right now, SMP futures are up four
Speaker 1: points at the tenth of upper cent. DAL futures are
Speaker 1: a little changed. NASDACK future is up two tenths per
Speaker 1: center twenty five points. The decks in Germany's down almost
Speaker 1: two tenths of upper sent ten. Your treasury down eight
Speaker 1: thirty seconds. He'll three point four or four percent. They
Speaker 1: yield on the two year four point to seven percent.
Speaker 1: Nimex screwed oil is up nine tenths per cent, or
Speaker 1: sixty four cents at seventy two dollars sixty four cents
Speaker 1: of barrel. Comex school down two tenths per cent or
Speaker 1: three dollars. That's ounce. The euro one point oh five
Speaker 1: oh two against the dollar. British found one point one zero,
Speaker 1: the unis at one thirty six point nine zero, and
Speaker 1: Bitcoin it's little changed at sixteen thousand, eight hundred dollars.
Speaker 1: And that's a Bloomberg business flash. Now here's Michael Barr
Speaker 1: with more on what's going on around the world. Michael Karen,
Speaker 1: thank you very much. The House is set to take
Speaker 1: a final vote on pretensions for same sex marriages. Today's
Speaker 1: vote will send the legislation to President Joe Biden. Members
Speaker 1: of former President Donald Trump's team notified the FBI they
Speaker 1: had found additional documents marked it's classified in a Florida's
Speaker 1: storage facility near Palm Beach. The chair of the House
Speaker 1: committee investigating last year's January six attack on the Capitol
Speaker 1: says the panel's report will be released December twenty one.
Speaker 1: In the NBA, the Nets, Knicks and Celtics were winners,
Speaker 1: the Wizards and Warriors lost. In the NHL, the Rangers,
Speaker 1: Bruins and Capitals all one Global News twenty four hours
Speaker 1: a day on air and on Bloomberg Quicktake, powered by
Speaker 1: more than twenty seven hundred journal fin analysts, more than
Speaker 1: twenty countries Michael Barrett. This is Bloomberg. Nick. Okay, Michael. Thanks.
Speaker 1: It's five forty two on Wall Street. This is Bloomberg
Speaker 1: day Break. Good morning. I'm Nathan Hagar along with Karen Moscow.
Speaker 1: Let's take a look at some of the other stories
Speaker 1: making news this morning. After the epic collapse of f
Speaker 1: t X, we are now learning the Crypto Exchange was
Speaker 1: holding talks to sponsor English Premier League teams Manchester United
Speaker 1: and Liverpool earlier this year. Let's get that story from
Speaker 1: Bloomberg's Charlie Pellett. The discussions underscore the now bankrupt company's
Speaker 1: ambitions to expand its global reach and its willingness to
Speaker 1: spend significant sums of money to do so. Federal prosecutors
Speaker 1: in Manhattan have begun investigating ft x's collapse, a decline
Speaker 1: that included an unexplained eight billion dollar shortfall in funds,
Speaker 1: and the US Justice Department's bankruptcy watchdog has called for
Speaker 1: an independent probe. The sources say the numbers associated with
Speaker 1: each of the potential multi year deals ranged from close
Speaker 1: to one hundred million dollars to north of that. FDx
Speaker 1: ultimately decided against sponsoring either team. In New York. Charlie
Speaker 1: Pellette Bloomberg day Break. All right, Charlie, thanks well. On
Speaker 1: the economic front, this morning, we get the latest reading
Speaker 1: on the labor market, with the US weekly jobless claims
Speaker 1: is at an eight thirty Wall Street time economists stay
Speaker 1: claims probably edged higher last week businesses have started shrimming
Speaker 1: payrolls and anticipation of an economic slowdown, and Bloomberg's Vinydale
Speaker 1: Juda says more initial jobless claims retreated in the government's
Speaker 1: prior weekly report, falling to two hundred twenty five thousand
Speaker 1: from a three month high of two hundred forty one thousand.
Speaker 1: Bloomberg Economics as layoffs aren't yet pervasive, but could accelerate,
Speaker 1: pushing the unemployment rate to five percent by four In November,
Speaker 1: the unemployment rate he steady at three point seven percent
Speaker 1: and near a half century low. Judas Bloomberg day Break. Okay, Vinny,
Speaker 1: thank you. Now let's get more on what could move
Speaker 1: markets today. For that, we're joined live by s D. J. Wack,
Speaker 1: the chief investment officer at Flow Bank. S D. Good morning.
Speaker 1: I guess all out of the focus for folks like
Speaker 1: you has to be on the data. We're seeing in
Speaker 1: this economy, we've had signs of continued strength in the
Speaker 1: labor market. Do you think that's going to hold up
Speaker 1: with the claims that are due out later on this morning?
Speaker 1: Good morning. Well, we've seen that the claims numbers have
Speaker 1: held up quite well and have stayed much lower than
Speaker 1: the probably than the FED would like to see. But
Speaker 1: we're getting more and more anecdotal evidence that the labor
Speaker 1: market is maybe not quite as tight as some of
Speaker 1: those headline numbers make it seem. And I think that's
Speaker 1: going to be comforting to the FED ahead of next
Speaker 1: week's CPI and of course the next FED meeting. Yeah,
Speaker 1: we do have that final read on inflation before that
Speaker 1: meeting coming up. We've got some pretty mixed economic data
Speaker 1: ahead of all that, the continued strength of the labor market.
Speaker 1: At the same time, we're seeing some strength in the
Speaker 1: services set as well. How does that potentially complicate things
Speaker 1: for this fan? Well, the services numbers earlier in the
Speaker 1: weeks certainly didn't help and in part led to the
Speaker 1: ongoing sell off that we're still seeing. Um well, we've
Speaker 1: seen up until yesterday. We'll see how that, um, how
Speaker 1: that turns out today. If futures are starting to point
Speaker 1: up a little bit UM. I think today markets are
Speaker 1: worried that uh, this underlying strength is not going to last,
Speaker 1: that we're getting more and more indicators that UM will
Speaker 1: have lagged effects in this economy, and that things will
Speaker 1: deteriorate next year. I think the market has been a
Speaker 1: little overly negative in the last couple of days. But UM,
Speaker 1: certainly we know the services are the area that stay strong.
Speaker 1: That's also the area where we're seeing the wage pressures
Speaker 1: and the tighter labor market UM. So all of those
Speaker 1: are just one extra headache for the FED because other
Speaker 1: indicators are certainly pointing in the right direction for what
Speaker 1: the FED has been trying to achieve. Interesting that you
Speaker 1: say that you're seeing maybe a bit of an overreaction
Speaker 1: in the markets. Of course, we've gotten all the commentary
Speaker 1: this week from the big Wall Street bank chief's warning
Speaker 1: about recession, and of course now with the twos and
Speaker 1: tens at this forty plus year inversion, what are you
Speaker 1: seeing that makes you think that this could potentially be
Speaker 1: something of an overreaction. Well, the the Yale curb in
Speaker 1: version isn't new. We've had that for a while. Yes,
Speaker 1: it's become a little more extreme, but it's certainly been
Speaker 1: inverted for quite some time. And if you look below
Speaker 1: the headline of some of those bank bank chief commentaries,
Speaker 1: they weren't as negative as some of the headlines made
Speaker 1: it to be. There's certainly a concern, and I think everyone,
Speaker 1: especially in the US economy, you have that sort of
Speaker 1: preemptive firing that happens that trying to cut the call.
Speaker 1: That's always something that we see banks do, and so
Speaker 1: they have u not an excuse, but at least a
Speaker 1: reason for it. Um. But as we're saying earlier, some
Speaker 1: of these services numbers and some of this other economic
Speaker 1: data is holding up, so the FED is closer to
Speaker 1: the end um of its tightening cycle. Then it doesn't
Speaker 1: mean that the recession has to be as serious as
Speaker 1: what the markets are reacting to um this week, even
Speaker 1: though we haven't seen that many data points in that direction.
Speaker 1: So are you looking at certain sectors or certain styles
Speaker 1: for opportunity in this type of environment where if if
Speaker 1: things pan out the way I think I hear you
Speaker 1: saying that they might, that the FED might start to
Speaker 1: move towards slower interest rate hikes sooner than the market
Speaker 1: might be expecting. I think the market is expecting fifty
Speaker 1: basis points next week, and I think that's what we're
Speaker 1: going to get. Whether we get another twenty five early
Speaker 1: next year is is a possibility. But we are certainly
Speaker 1: getting towards the end of the aggressive part of the
Speaker 1: typnic cycle and potentially the tight nic cycle. The FED
Speaker 1: is going to spend a lot of time talking to
Speaker 1: us about higher for longer, and I think they're going
Speaker 1: to try to keep working to price out those rates
Speaker 1: cuts rate cuts that the market has in their numbers
Speaker 1: for the end of next year, So there's going to
Speaker 1: be work over there. But the slowdown, we haven't seen
Speaker 1: any real catalyst for the sharp correction in markets of
Speaker 1: the last couple of days. We know that positioning got
Speaker 1: lighter again, so people just maybe got they had a
Speaker 1: couple bad days and then they figured out this was
Speaker 1: another bare market rally, let's get out. That's certainly not helping.
Speaker 1: But the picture for the FED hasn't changed so much
Speaker 1: in the last two days, and the picture for growth
Speaker 1: hasn't either. Got about thirty seconds left here ask you.
Speaker 1: Of course, we saw that big surge in Hong Kong
Speaker 1: shares overnight on signs that there could be even further
Speaker 1: easing away from the strictest COVID zero policies. Does China
Speaker 1: look more invest well to you? Now? China does look
Speaker 1: more investable. Um, We're seeing a couple of different actions
Speaker 1: from the Chinese policymakers, one mentioning that focus on growth
Speaker 1: to of course the reopening measures that we're seeing, although
Speaker 1: it might not be quite as simple as as the
Speaker 1: way we're looking at it right now, and of course
Speaker 1: the support for the real estate market and when you
Speaker 1: put those together is certainly looking better if they look
Speaker 1: at they kind of ease off on the regulation as
Speaker 1: well for some of the big tech it certainly makes
Speaker 1: it a more interesting investment in environment. Thanks as always
Speaker 1: as the great getting your thoughts. Sd J. Wag, chief
Speaker 1: investment officer at Flow Bank with us this morning. STP
Speaker 1: futures right now up one point. The future is now
Speaker 1: down twenty one points. NASTACK futures higher by sixteen points.
Speaker 1: The tenure Treasury is down eight thirty seconds. The yield
Speaker 1: three point four four percent, yield on the two year
Speaker 1: four point to seven percent. This is Bloomberg Markets Headlines
Speaker 1: and Breaking News twenty four hours a day at Bloomberg
Speaker 1: dot Com, the Bloomberg Business Outland at Bloomberg Quick Take,
Speaker 1: this is a Bloomberg Business lash and I'm Karen Moscow.
Speaker 1: A US DOCK Index futures are mostly higher, with SMP
Speaker 1: futures of four points or a tenth of a percent.
Speaker 1: NASDACK futures have two tens per cent or twenty four points.
Speaker 1: Will down futures are a little change this morning. The
Speaker 1: decks in Germany is down about a third of a percent.
Speaker 1: Ten year treasury down eight thirty seconds, you know, three
Speaker 1: point four or four percent, and a yield on the
Speaker 1: two year at four point to seven percent. Nine X
Speaker 1: screwed oil is up one percent or seventy two cents
Speaker 1: at seventy two seventy three cents a barrel comic school
Speaker 1: down a tenth of upper cent or two dollars sixty
Speaker 1: cents at seventeen. The euro one point oh five oh
Speaker 1: six against the dollar, British pound one point two one
Speaker 1: six one, and the yennis at one thirty six point
Speaker 1: nine three bitcoy this morning, lit'll change at sixteen thousand,
Speaker 1: eight hundred dollars, and sources telling Bloomberg that Unilever is
Speaker 1: weighing the sale of a portfolio of US ice cream
Speaker 1: brands that could be valued at as much as three
Speaker 1: billion dollars, and as a Bloomberg Business flash, Nathan, all right, Karen,
Speaker 1: thank you. It's now five fifty six on Wall Street.
Speaker 1: It's time for our daily Bloomberg Law Brief, exploring legal
Speaker 1: issues in the news. Today, we're looking at a Trump
Speaker 1: business that's been convicted of criminal conduct for the first time.
Speaker 1: After a month long trial, a jury in New York
Speaker 1: has convicted to Trump organization companies Trump Corporation and Trump
Speaker 1: Payroll Corporation of all seventeen counts against them, including a
Speaker 1: scheme to the fraud, conspiracy, criminal tax fraud, and falsifying
Speaker 1: business records. Former President Donald Trump was not charged in
Speaker 1: this case. For more, Bloomberg's June Grosso speaks with Bloomberg
Speaker 1: Legal reporter Patricia Hurtado, who covered the trial. What's the
Speaker 1: likely sentence for this verdict? Well, both of the companies
Speaker 1: now what is estimated to be a grand total of
Speaker 1: one point six million dollars and fine for not having
Speaker 1: the employees paying taxes and for being convicted. Some may say, well,
Speaker 1: that's paltry for a company like Trump Ort. Why does
Speaker 1: it matter? But it's a huge taint on the good
Speaker 1: name and goodwill of the company that is belongs to
Speaker 1: the former president. He obviously was tweeting about it and
Speaker 1: complaining that he knew nothing of this fraud. Some people
Speaker 1: are suggesting to us that it may make it more
Speaker 1: difficult for the company to do business because some lenders
Speaker 1: and possibly partners may not want to do any business
Speaker 1: anymore with such Trump Org and its entities because of
Speaker 1: this conviction, Because why would you want to do business
Speaker 1: with a salon? There's nothing regulatory about state law. It's
Speaker 1: it's not as rigorous as one would hope to get,
Speaker 1: and yet you know it's got a reputational harm to it.
Speaker 1: There's part of Trump's response. The case was about Alan
Speaker 1: Wisselberg committing tax for a on his personal tax returns, etcetera.
Speaker 1: Every witness repeatedly testified that President Trump and the Trump
Speaker 1: family knew nothing about his actions. But wasn't there testimony
Speaker 1: about Trump approving these transactions and signing checks. They showed
Speaker 1: ledgers or memos where Trump was personally okay certain bonus payments,
Speaker 1: and you saw his you know, signature and initials with
Speaker 1: the Black sharky Okaine. These payments. You saw him approving
Speaker 1: certain executive getting car leases. There were three employees that
Speaker 1: testified for the prosecutors, and the testimony showed that basically
Speaker 1: Donald Trump had to and did approve and sign every
Speaker 1: check over. And when you start thinking about what wou
Speaker 1: did Donald Trump see and what came across his death,
Speaker 1: that's obviously many of these payments, like including car payments
Speaker 1: to these leases for these Mercedes ben were approved by
Speaker 1: Donald Trump. There was also evidence that show he had
Speaker 1: had conversation with Weifelberg about getting an impartment for him
Speaker 1: that it was going to be paid for by the
Speaker 1: Trump corporation. So there were many indications that Trump knew.
Speaker 1: That's Bloomberg Legal reporter Patricia Hurtado speaking with Bloomberg June Grosso.
Speaker 1: You can catch more of that interview plus analysis of
Speaker 1: the latest legal news by subscribing to the Bloomberg Law
Speaker 1: podcast or downloading the show at Bloomberg dot com, Slash podcasts,
Speaker 1: and attorneys can find exceptional legal research and business development
Speaker 1: tools at Bloomberg law dot com and on the Bloomberg
Speaker 1: terminal at the Law Go straight ahead. We'll get a
Speaker 1: check out of your latest business headlines, all the news
Speaker 1: you need to start your day. Our two of Bloomberg
Speaker 1: Daybreak starts right now