1
00:00:03,320 --> 00:00:06,680
Speaker 1: Live from the Bloomberg Interactive Burgers studios. This is is Bloomberg

2
00:00:06,800 --> 00:00:10,160
Speaker 1: day Break for Tuesday, December thirteen, twenty twenty two. Coming

3
00:00:10,240 --> 00:00:12,760
Speaker 1: up this hour, the disgrace founder of f t X

4
00:00:12,840 --> 00:00:17,000
Speaker 1: Sam Bankman Freed is arrested. Team coverage straight had Inflation

5
00:00:17,079 --> 00:00:20,200
Speaker 1: isn't focused as well. Street braces for the latest CPI reading.

6
00:00:20,480 --> 00:00:24,000
Speaker 1: Another big investor forecasts a recession for next year, and

7
00:00:24,120 --> 00:00:27,680
Speaker 1: elon must SpaceX HiT's a valuation of one hundred forty

8
00:00:27,720 --> 00:00:31,000
Speaker 1: billion dollars. I'm Amy Morris. New York's gun law remains

9
00:00:31,040 --> 00:00:33,680
Speaker 1: intact for now, and the city plans to honor the

10
00:00:33,760 --> 00:00:36,880
Speaker 1: Central Park five. I'm John Stashwar and sports the Rangers

11
00:00:36,880 --> 00:00:38,960
Speaker 1: with the Devils and overtime. I win for the Nets.

12
00:00:39,000 --> 00:00:43,840
Speaker 1: The Patriots one in the World Cup semifinals begin today.

13
00:00:44,560 --> 00:00:48,479
Speaker 1: That's all straining ahead on Bloomberg Daybreak on Bloomberg Eleving

14
00:00:48,520 --> 00:00:52,000
Speaker 1: Free on New York, Bloomberg nine one, Washington, d C,

15
00:00:52,479 --> 00:00:56,080
Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties and

16
00:00:56,120 --> 00:00:59,720
Speaker 1: Francisco Sirius x M one nine Team and around the

17
00:00:59,760 --> 00:01:02,520
Speaker 1: world Old on Bloomberg Radio dot Com and via the

18
00:01:02,560 --> 00:01:09,880
Speaker 1: Bloomberg Business Up. Good morning. I'm Nathan Hagar and I'm

19
00:01:09,959 --> 00:01:12,640
Speaker 1: Karen Moscow and US dot in next. Futures are on

20
00:01:12,720 --> 00:01:14,840
Speaker 1: the rise this morning. It is five oh one on

21
00:01:14,880 --> 00:01:16,880
Speaker 1: Wall Street, and we checked the markets all day long

22
00:01:16,880 --> 00:01:19,840
Speaker 1: here at Bloomberg. Right now, SMP futures are up about

23
00:01:19,880 --> 00:01:22,680
Speaker 1: seven points, up almost two tenths of upper cent. DAL

24
00:01:22,800 --> 00:01:25,279
Speaker 1: futures up almost two tenths of upper cent or fifty

25
00:01:25,280 --> 00:01:28,119
Speaker 1: five points, and now Stack futures of twenty three points

26
00:01:28,160 --> 00:01:30,840
Speaker 1: or two tenths of U percent. Ten year Treasury up

27
00:01:30,840 --> 00:01:33,600
Speaker 1: to thirties seconds held three point six zero percent, and

28
00:01:34,000 --> 00:01:36,880
Speaker 1: yield on the two years at four point three seven percent,

29
00:01:37,200 --> 00:01:40,880
Speaker 1: and NIMEX screwed oil is up nine tenths of upper cent. Nathan, Karen.

30
00:01:40,920 --> 00:01:42,960
Speaker 1: We'll have more on the markets in just a minute,

31
00:01:42,959 --> 00:01:45,720
Speaker 1: but first we begin with the arrest of disgraced f

32
00:01:45,880 --> 00:01:48,960
Speaker 1: t X founder Sam Bankman Freed. Let's get the latest

33
00:01:49,000 --> 00:01:51,920
Speaker 1: live with Bloomberg. Steve Rappaport. Good morning, Steve, Good morning,

34
00:01:52,000 --> 00:01:54,920
Speaker 1: Nathan and Karen. Authorities in the Bahamas took Bankman Freed

35
00:01:54,960 --> 00:01:58,720
Speaker 1: into custody after the US government filed criminal charges. Prosecutors

36
00:01:58,760 --> 00:02:01,000
Speaker 1: planned to unseal their case against him this morning. The

37
00:02:01,040 --> 00:02:04,279
Speaker 1: New York Times reports charges include wire fraud, securities fraud,

38
00:02:04,320 --> 00:02:07,720
Speaker 1: and money wandering. Ballot Crypto founder and CEO Bobby leech

39
00:02:07,760 --> 00:02:10,080
Speaker 1: Chunk tells US Bankman Freed's arrest is a sigh of

40
00:02:10,080 --> 00:02:13,200
Speaker 1: relief for the crypto business. There's other perspective that he's

41
00:02:13,200 --> 00:02:17,639
Speaker 1: been successfully lobbying the governments, the politicians, and he's been

42
00:02:17,760 --> 00:02:22,000
Speaker 1: having good media treatment over the last few weeks. So

43
00:02:22,040 --> 00:02:24,799
Speaker 1: there's been a lot of hate and anger that why

44
00:02:24,840 --> 00:02:27,680
Speaker 1: aren't they arresting him sooner. Bankman Freed was scheduled to

45
00:02:27,720 --> 00:02:31,400
Speaker 1: testify remotely before the House Financial Services Committee today. Instead,

46
00:02:31,520 --> 00:02:34,200
Speaker 1: he's expected to appear in court as the US seeks

47
00:02:34,200 --> 00:02:37,600
Speaker 1: his extradition. Live in New York, I'm Steve Rappaport Bloomberg Daybreak.

48
00:02:37,639 --> 00:02:40,000
Speaker 1: All right, Steve, thank you all. Reaction is pouring in

49
00:02:40,040 --> 00:02:43,560
Speaker 1: this morning to Sam Bankman Freed's arrest. Token Bay Capital

50
00:02:43,600 --> 00:02:47,600
Speaker 1: founder Lucy Gasmarian says it's good news for the crypto industry.

51
00:02:48,040 --> 00:02:51,200
Speaker 1: Justice seems to be, you know, in process, which I

52
00:02:51,200 --> 00:02:53,960
Speaker 1: think is welcomed by those in the in the crypto industry.

53
00:02:54,000 --> 00:02:56,440
Speaker 1: It's actually moved very swiftly. I mean that this is

54
00:02:56,480 --> 00:02:58,840
Speaker 1: actually all happening in just over a month, so they've

55
00:02:58,880 --> 00:03:03,280
Speaker 1: definitely moved very quickly. Lucy Gasmarrian also says this case

56
00:03:03,320 --> 00:03:07,320
Speaker 1: could define regulations for crypto exchanges going forward. Now we're

57
00:03:07,360 --> 00:03:09,680
Speaker 1: gonna have much more on the arrest of Sam Bankman

58
00:03:09,760 --> 00:03:11,880
Speaker 1: freed coming up in just a few minutes here, Karen.

59
00:03:11,919 --> 00:03:13,920
Speaker 1: But first we want to turn to the economy and

60
00:03:13,960 --> 00:03:16,640
Speaker 1: the outlook for inflation. We are just about three and

61
00:03:16,639 --> 00:03:19,280
Speaker 1: a half hours away from the week's first important data point,

62
00:03:19,680 --> 00:03:22,880
Speaker 1: consumer prices for November, and it comes just one day

63
00:03:22,919 --> 00:03:26,600
Speaker 1: before the FEDS policy decision. Bloomberg's Michael McKee begins our

64
00:03:26,720 --> 00:03:30,600
Speaker 1: team coverage. Inflation may have peaked, but November CPI report

65
00:03:30,600 --> 00:03:32,919
Speaker 1: will show it's still running about three times it's pre

66
00:03:32,960 --> 00:03:36,480
Speaker 1: pandemic Pace shelter the cost of housing will remain a

67
00:03:36,560 --> 00:03:40,480
Speaker 1: big driver. Although private reports show rents and home prices declining,

68
00:03:40,600 --> 00:03:42,760
Speaker 1: it takes a long time for that to be reflected

69
00:03:42,840 --> 00:03:46,360
Speaker 1: in the CPI data. Service industries are still raising prices,

70
00:03:46,440 --> 00:03:49,760
Speaker 1: driven by a shortage of workers pushing up wages. Prices

71
00:03:49,760 --> 00:03:53,280
Speaker 1: of used cars and medical care services are expected to decline.

72
00:03:53,520 --> 00:03:56,520
Speaker 1: Apparel prices will also likely drop for a third month

73
00:03:56,560 --> 00:04:00,280
Speaker 1: amid high inventory at heavy discounting heading into the holidays easy.

74
00:04:00,560 --> 00:04:03,320
Speaker 1: Anything short of a massive surprise will defect the feds

75
00:04:03,360 --> 00:04:07,080
Speaker 1: Wednesday decision on interest rates, but it will offer policymakers

76
00:04:07,120 --> 00:04:11,000
Speaker 1: clues to the trajectory of inflation next year. Michael McKee,

77
00:04:11,040 --> 00:04:14,880
Speaker 1: Bloomberg Daybreak Right, Mike, thanks well. If history is any indication,

78
00:04:14,960 --> 00:04:18,680
Speaker 1: today's CPI report will move markets, and we continue our

79
00:04:18,720 --> 00:04:23,200
Speaker 1: team carverage with Bloomberg Markets reporter Valerie Title taping organistrating

80
00:04:23,240 --> 00:04:25,599
Speaker 1: DUSKS had a note saying they could see ten percent

81
00:04:25,720 --> 00:04:29,160
Speaker 1: SMP rally if the CPI comes in soft and when

82
00:04:29,160 --> 00:04:30,800
Speaker 1: you look at that, you know that's not too surprising.

83
00:04:30,920 --> 00:04:33,880
Speaker 1: Last month's soft print saw five point five percent jump

84
00:04:33,920 --> 00:04:36,960
Speaker 1: in the SMP. The last six prints and CPI have

85
00:04:37,120 --> 00:04:40,080
Speaker 1: all had a three percent swing in the SMP index.

86
00:04:40,279 --> 00:04:43,120
Speaker 1: So the volatility around the data today it's huge, if

87
00:04:43,160 --> 00:04:46,120
Speaker 1: not maybe larger than the actual rate decision tomorrow. And

88
00:04:46,160 --> 00:04:49,400
Speaker 1: Bloomberry's Valier Right Title says markets continue to expect a

89
00:04:49,440 --> 00:04:52,560
Speaker 1: fifty basis point hike from the Fed tomorrow, and many

90
00:04:52,600 --> 00:04:55,440
Speaker 1: on the street predict a rally if inflation cools Karen

91
00:04:55,520 --> 00:04:58,880
Speaker 1: but not Jeffrey gun Black, the double Line Capital CEO

92
00:04:58,960 --> 00:05:01,760
Speaker 1: predicts any rally likely won't last. We're probably going to

93
00:05:01,800 --> 00:05:05,440
Speaker 1: see a bounce in markets between now and maybe a

94
00:05:05,480 --> 00:05:08,080
Speaker 1: month from now as as money as rotated. There's been

95
00:05:08,080 --> 00:05:12,000
Speaker 1: a lot of tax loss selling that's going on in

96
00:05:12,040 --> 00:05:14,839
Speaker 1: recent weeks, and I think that may reverse, but I

97
00:05:14,880 --> 00:05:17,240
Speaker 1: think that that's going to be short lived. And then

98
00:05:17,279 --> 00:05:20,360
Speaker 1: I think we do see a renewed bear market. Uh

99
00:05:20,400 --> 00:05:23,440
Speaker 1: in at least in risk asset's not so much in bonds.

100
00:05:23,600 --> 00:05:26,320
Speaker 1: Double Line CEO Jeffrey Gunlikes has rate hikes from the

101
00:05:26,320 --> 00:05:30,120
Speaker 1: Fed will likely make three a recessionary year. Well, Nathan,

102
00:05:30,160 --> 00:05:32,719
Speaker 1: we're watching shares of Oracle this morning of too and

103
00:05:32,800 --> 00:05:36,080
Speaker 1: a third percent in early training. This software company reported

104
00:05:36,160 --> 00:05:40,520
Speaker 1: quarterly sales at top analysts estimates. The company's Cerner digital

105
00:05:40,520 --> 00:05:44,599
Speaker 1: health records unit outperformed, and that helped Oracle overcome softer

106
00:05:44,720 --> 00:05:48,600
Speaker 1: demand for its information technology services. And speaking of technology,

107
00:05:48,680 --> 00:05:51,160
Speaker 1: Karen Elon Musk is making news this morning with two

108
00:05:51,160 --> 00:05:55,240
Speaker 1: of his companies. The Washington Post reports Twitter has dissolved

109
00:05:55,279 --> 00:05:58,360
Speaker 1: its Trust and Safety Council. Paper says Musk is undone

110
00:05:58,440 --> 00:06:00,839
Speaker 1: years of investments in trust and safetya Twitter in the

111
00:06:00,880 --> 00:06:03,680
Speaker 1: two months he's owned the company, and Bloomberg News has

112
00:06:03,760 --> 00:06:07,480
Speaker 1: learned must SpaceX is offering to sell insider shares at

113
00:06:07,480 --> 00:06:10,360
Speaker 1: a price that would raise the company's valuation to about

114
00:06:10,400 --> 00:06:15,440
Speaker 1: one forty billion dollars. SpaceX, based in California, currently dominates

115
00:06:15,480 --> 00:06:18,560
Speaker 1: the market for commercial space launches. And we have a

116
00:06:18,600 --> 00:06:21,680
Speaker 1: note from Asia this morning, Hong Kong is scrapping some

117
00:06:21,800 --> 00:06:25,520
Speaker 1: of its last remaining COVID restrictions that follows China's rapid

118
00:06:25,560 --> 00:06:28,360
Speaker 1: shift away from its zero tolerance approach to the virus.

119
00:06:28,680 --> 00:06:31,800
Speaker 1: Hong Kong will lift a ban on international arrivals going

120
00:06:31,839 --> 00:06:34,640
Speaker 1: to bars or restaurants, and will also stop requiring people

121
00:06:34,640 --> 00:06:38,279
Speaker 1: to scan QR codes on their phones to intervenues. And again,

122
00:06:38,320 --> 00:06:40,720
Speaker 1: futures are higher this morning. S and P Future is

123
00:06:40,800 --> 00:06:43,400
Speaker 1: up seven points, Staff Future is up sixty one and

124
00:06:43,480 --> 00:06:46,520
Speaker 1: as Day Future is up twenty five. Ten year Treasury

125
00:06:46,560 --> 00:06:49,240
Speaker 1: up three thirty seconds, you know, three point five nine percent,

126
00:06:49,320 --> 00:06:51,880
Speaker 1: and they yield on the two year four point three

127
00:06:52,000 --> 00:06:56,039
Speaker 1: seven percent straight to head your latest local headlines plus

128
00:06:56,040 --> 00:07:03,880
Speaker 1: the check of sports, and this is Bloomberg expern five

129
00:07:03,880 --> 00:07:06,640
Speaker 1: oh seven on Wall Street, twenties six degrees. This morning

130
00:07:06,640 --> 00:07:08,400
Speaker 1: in Central Park is gonna be sunny with stay in

131
00:07:08,440 --> 00:07:10,800
Speaker 1: Chili today with heis only near forty and getting back

132
00:07:10,800 --> 00:07:13,480
Speaker 1: down to the upper twenties tonight. Amy Morris is here

133
00:07:13,520 --> 00:07:15,360
Speaker 1: now with more on what's going on in New York

134
00:07:15,400 --> 00:07:17,800
Speaker 1: and around the world. Good morning, Amy, Good morning Nathan.

135
00:07:17,840 --> 00:07:20,360
Speaker 1: New York's gun law remains intact for now. The New

136
00:07:20,440 --> 00:07:23,360
Speaker 1: York Times Reports and Appeals Court has temporarily halted a

137
00:07:23,400 --> 00:07:26,120
Speaker 1: lower court's ruling that blocked part of the law, which

138
00:07:26,160 --> 00:07:29,840
Speaker 1: bans firearms and parks public transit systems and on private

139
00:07:29,880 --> 00:07:32,920
Speaker 1: property without the property owner's permission. The stay is the

140
00:07:32,960 --> 00:07:36,040
Speaker 1: third such order issued this month as the panel considers

141
00:07:36,200 --> 00:07:39,280
Speaker 1: constitutional challenges to the law, which New York enacted this

142
00:07:39,360 --> 00:07:42,000
Speaker 1: year after the Supreme Court struck down the state's limits

143
00:07:42,080 --> 00:07:45,320
Speaker 1: on carrying handguns in public. While the number of felony

144
00:07:45,360 --> 00:07:47,760
Speaker 1: crimes on the New York subway system is way up

145
00:07:47,840 --> 00:07:49,840
Speaker 1: for the year, the head of the New York City

146
00:07:49,880 --> 00:07:53,800
Speaker 1: Transit Richard Davey, testified on the Council hearing on Public Safety,

147
00:07:54,080 --> 00:07:58,080
Speaker 1: saying that transit crime is actually down more than the

148
00:07:58,080 --> 00:08:00,520
Speaker 1: month of November if you compare it to November of

149
00:08:00,640 --> 00:08:03,600
Speaker 1: last year. It's way too early to celebrate, but I

150
00:08:03,640 --> 00:08:05,960
Speaker 1: believe there is real progress that we can trace back

151
00:08:05,960 --> 00:08:07,920
Speaker 1: to the actions by the mayor and the governor. Now

152
00:08:07,920 --> 00:08:10,000
Speaker 1: we're to Davy. They're referring to a plan from late

153
00:08:10,040 --> 00:08:12,880
Speaker 1: October that put a heavier police presence in place in

154
00:08:12,920 --> 00:08:16,320
Speaker 1: the subway system. He also testified the transit officials will

155
00:08:16,320 --> 00:08:19,160
Speaker 1: push for judges to ban people from the transit system

156
00:08:19,200 --> 00:08:22,520
Speaker 1: when they commit certain crimes. Tomorrow marks a decade since

157
00:08:22,560 --> 00:08:25,360
Speaker 1: twenty children and six educators were shot dead at Sandy

158
00:08:25,360 --> 00:08:29,040
Speaker 1: Hook Elementary School. Connecticut Governor Ned Lamont says more needs

159
00:08:29,080 --> 00:08:31,160
Speaker 1: to be done on the state and federal level. Now.

160
00:08:31,160 --> 00:08:34,160
Speaker 1: Back in October, the governor said something more needs to

161
00:08:34,160 --> 00:08:37,160
Speaker 1: be done out there are too many illegal guns. Lamont

162
00:08:37,200 --> 00:08:40,319
Speaker 1: says he will be proposing measures to close the assault

163
00:08:40,320 --> 00:08:43,280
Speaker 1: weapons ban loopholes and help take ghost guns off the

164
00:08:43,320 --> 00:08:47,319
Speaker 1: street in the upcoming state legislative session. New York City

165
00:08:47,360 --> 00:08:49,840
Speaker 1: is naming a gate in Central Park in honor of

166
00:08:49,880 --> 00:08:53,360
Speaker 1: the five men who, as teenagers were wrongfully convicted of

167
00:08:53,360 --> 00:08:56,320
Speaker 1: the nineteen nine rape of a jogger and spent years

168
00:08:56,440 --> 00:08:59,520
Speaker 1: in prison before they were exonerated. The city's Public Design

169
00:08:59,520 --> 00:09:03,520
Speaker 1: Commission unanimously approved the project. The Gate of the exonerated

170
00:09:03,520 --> 00:09:06,200
Speaker 1: will be inscribed in sandstone at the northern end of

171
00:09:06,200 --> 00:09:08,960
Speaker 1: the park. Mayor Eric Adams called the project a moment

172
00:09:09,000 --> 00:09:12,680
Speaker 1: of truth and reconciliation for the city. Global News twenty

173
00:09:12,679 --> 00:09:15,320
Speaker 1: four hours a day on air and on Bloomberg Quick Take,

174
00:09:15,400 --> 00:09:18,480
Speaker 1: powered by more than twenty seven hundred journalists and analysts

175
00:09:18,520 --> 00:09:21,600
Speaker 1: in more than one d twenty countries. I'm Amy Morris.

176
00:09:21,640 --> 00:09:28,920
Speaker 1: This is Bloomberg. Nathan all right, Amy, thank you five

177
00:09:28,920 --> 00:09:31,120
Speaker 1: oh nine on Wall Street time for the Bloomberg Sports Up.

178
00:09:31,120 --> 00:09:33,080
Speaker 1: They brought to you by Trice stayed Out. Good morning,

179
00:09:33,160 --> 00:09:36,880
Speaker 1: john stonhaw Good morning, Nathan. It was October when the

180
00:09:36,920 --> 00:09:39,520
Speaker 1: Devils began their season with a loss in Philadelphia. They

181
00:09:39,520 --> 00:09:42,080
Speaker 1: had not lost a road game since, and at the

182
00:09:42,120 --> 00:09:44,559
Speaker 1: Garden they led the Rangers to nothing. Five minutes in.

183
00:09:44,640 --> 00:09:47,880
Speaker 1: They were up three one midway through, Rangers rallied the tie.

184
00:09:47,920 --> 00:10:01,000
Speaker 1: The game went to overtime. Rangers shut up after a

185
00:10:01,120 --> 00:10:05,360
Speaker 1: bit saved by horses Perkin. The rateers wint at four

186
00:10:05,440 --> 00:10:09,120
Speaker 1: to three at overtime, and in the Devil's eleven game

187
00:10:09,280 --> 00:10:12,280
Speaker 1: road which rates the rates play there fourth in the

188
00:10:12,360 --> 00:10:14,920
Speaker 1: role ESPN New York. The Devils are coming off a

189
00:10:14,960 --> 00:10:17,160
Speaker 1: home loss to the Islanders. This is their first two

190
00:10:17,240 --> 00:10:19,920
Speaker 1: game losing streaks since the first two games of the season.

191
00:10:20,360 --> 00:10:22,280
Speaker 1: Nets been while made at four wins in a row.

192
00:10:22,320 --> 00:10:24,480
Speaker 1: Eight of the last night one twelve to one hundred

193
00:10:24,520 --> 00:10:27,720
Speaker 1: of Washington, Kevin Durant, in his hometown, scored thirty points.

194
00:10:27,760 --> 00:10:31,080
Speaker 1: Kyrie I had both had been given the previous game

195
00:10:31,120 --> 00:10:34,880
Speaker 1: off Monday Night football, so Arizona losing star quarterback Kyler

196
00:10:35,000 --> 00:10:37,360
Speaker 1: Murray to an apparent torn a c l happened on

197
00:10:37,400 --> 00:10:39,800
Speaker 1: the third play of the night. New England scored the

198
00:10:39,840 --> 00:10:42,199
Speaker 1: last twenty points, took the lead on a fumble return.

199
00:10:42,280 --> 00:10:46,000
Speaker 1: The Patriots beat the Cardinals seven to thirteen, So the Pats,

200
00:10:46,040 --> 00:10:49,120
Speaker 1: the Jets, and the Chargers are all seven and six,

201
00:10:49,200 --> 00:10:51,959
Speaker 1: three way tie for the last a f C playoff spot.

202
00:10:52,280 --> 00:10:55,320
Speaker 1: Sixty one year old Mississippi State coach Mike Leach is

203
00:10:55,320 --> 00:10:58,760
Speaker 1: in critical condition after suffering a massive heart attack. Texas

204
00:10:58,800 --> 00:11:02,480
Speaker 1: suspended basketball coach Chris Beard after his arrest for felony

205
00:11:02,559 --> 00:11:05,640
Speaker 1: domestic violence. Chris Baskett pitched this past season for the Mets.

206
00:11:05,640 --> 00:11:08,959
Speaker 1: Signed with Toronto Argentina stuff for that shocking loss to

207
00:11:09,040 --> 00:11:12,440
Speaker 1: Saudi Arabia, but as one fourth grade. Since today in Qatar,

208
00:11:12,600 --> 00:11:16,920
Speaker 1: it's Argentina versus Croatia in the World Cup semifinals. John

209
00:11:16,960 --> 00:11:20,040
Speaker 1: Stashward Bloomberg Sports, Nathan, Thank you John and Bloomberg Sports

210
00:11:20,080 --> 00:11:21,880
Speaker 1: is brought to you by Audie. Don't let someone else

211
00:11:21,960 --> 00:11:24,079
Speaker 1: drive off and the outie model. You've always wanted to

212
00:11:24,160 --> 00:11:26,920
Speaker 1: visit your local Tri state autie dealer to get behind

213
00:11:26,920 --> 00:11:29,720
Speaker 1: the wheel of yours today, or visit autie Offers dot

214
00:11:29,760 --> 00:11:32,360
Speaker 1: com for more information. Up next, you're gonna get the

215
00:11:32,400 --> 00:11:37,760
Speaker 1: latest on the arrest of disgraced FTX founder Sam Bankman freed.

216
00:11:38,280 --> 00:11:41,480
Speaker 1: First SMP futures are higher by five points ahead of

217
00:11:41,960 --> 00:11:45,080
Speaker 1: CPI data later this morning. Dal future is up fifty

218
00:11:45,120 --> 00:11:48,280
Speaker 1: two and a. NASTAC futures are higher by twenty one

219
00:11:48,320 --> 00:11:50,560
Speaker 1: points A ten. Your treasury is up one thirty second,

220
00:11:50,640 --> 00:11:53,120
Speaker 1: Yeld three point six zero percent yield on the two

221
00:11:53,240 --> 00:11:56,600
Speaker 1: year four point three eight percent. Bitcoins trading one point

222
00:11:56,600 --> 00:11:59,760
Speaker 1: four percent higher right now at seventeen thousand, four hundred.

223
00:12:01,960 --> 00:12:05,240
Speaker 1: It's five twelve on Wall Street. I'm Nathan Hagar. This

224
00:12:05,280 --> 00:12:07,280
Speaker 1: is Bloomberg Day Break. Let's get back to our top

225
00:12:07,320 --> 00:12:09,520
Speaker 1: story of the morning. F t X founder Sam Bankman

226
00:12:09,559 --> 00:12:13,000
Speaker 1: fried under arrest in the Bahamas, awaiting extradition to the

227
00:12:13,080 --> 00:12:17,360
Speaker 1: US now only weeks after the stunning collapse of his

228
00:12:17,480 --> 00:12:20,640
Speaker 1: crypto exchange. For more, we're joined Life from Washington, d

229
00:12:20,679 --> 00:12:24,600
Speaker 1: C this morning by Bloomberg Global Financial correspondent Shannali Bassic Shenali,

230
00:12:24,760 --> 00:12:28,160
Speaker 1: Good morning. I've expect this is making your trip to

231
00:12:28,240 --> 00:12:31,760
Speaker 1: d C for the f t X hearings much different now.

232
00:12:31,800 --> 00:12:34,400
Speaker 1: But what do we know so far about what led

233
00:12:34,800 --> 00:12:39,720
Speaker 1: to SPF's arrest overnight? Yeah, so we know that the

234
00:12:39,880 --> 00:12:44,680
Speaker 1: US UM Attorney General here has said that they expect

235
00:12:44,720 --> 00:12:48,160
Speaker 1: to unseal an indictment later this morning, and they'll have

236
00:12:48,200 --> 00:12:50,240
Speaker 1: more to say at that time about the charges that

237
00:12:50,280 --> 00:12:54,360
Speaker 1: he is um facing in the United States. But the Bahamas, remember,

238
00:12:54,400 --> 00:12:57,839
Speaker 1: had said that they also had um you know, been

239
00:12:57,840 --> 00:12:59,920
Speaker 1: working with the United States and working through the actual

240
00:13:00,000 --> 00:13:03,120
Speaker 1: issue process, the process that could take some time, as

241
00:13:03,120 --> 00:13:05,720
Speaker 1: we know. So it's both of Bahamas in the United

242
00:13:05,720 --> 00:13:10,000
Speaker 1: States working together here. Remember, the US charges are criminal, indeed,

243
00:13:10,000 --> 00:13:13,080
Speaker 1: we're there, he's also facing separate simple charges from the

244
00:13:13,080 --> 00:13:16,880
Speaker 1: Securities an Exchange Commission in the United States and that

245
00:13:16,960 --> 00:13:21,280
Speaker 1: those charges are expected to be filed on Tuesday in Manhattan.

246
00:13:21,480 --> 00:13:24,040
Speaker 1: So we'll get a lot more detail today on the

247
00:13:24,160 --> 00:13:27,520
Speaker 1: charges he's facing and what the authorities have to say

248
00:13:27,600 --> 00:13:29,680
Speaker 1: about him. Magman freed in the United States as well

249
00:13:29,720 --> 00:13:33,400
Speaker 1: as behold us. Yeah, so obviously he's under a multiple

250
00:13:33,520 --> 00:13:39,000
Speaker 1: investigations here and facing scrutiny as you know from lawmakers

251
00:13:39,120 --> 00:13:42,280
Speaker 1: in Washington, d C. With two days of hearings getting

252
00:13:42,360 --> 00:13:46,360
Speaker 1: under way, uh just today, and with this arrest coming,

253
00:13:46,840 --> 00:13:49,680
Speaker 1: you know, hours before those hearings are set to begin.

254
00:13:50,120 --> 00:13:52,840
Speaker 1: What does this mean for these hearings that are that

255
00:13:52,880 --> 00:13:56,520
Speaker 1: are due to start. Correct? So the this morning, we

256
00:13:56,600 --> 00:13:59,000
Speaker 1: know at about ten o'clock we all hear from the

257
00:13:59,040 --> 00:14:02,199
Speaker 1: new f TFCO John Ray and he was the former

258
00:14:02,280 --> 00:14:05,240
Speaker 1: n RUN Liquid Data as well, and he's already posted

259
00:14:05,280 --> 00:14:07,360
Speaker 1: his testimony. I'm sure he'll get asked a lot of

260
00:14:07,440 --> 00:14:11,079
Speaker 1: questions about what happened to ft X, how customer funds

261
00:14:11,080 --> 00:14:13,680
Speaker 1: can be recouped, and then also you know changes in

262
00:14:13,679 --> 00:14:16,040
Speaker 1: the industry going forward. Remember when it comes to the

263
00:14:16,040 --> 00:14:19,640
Speaker 1: House and the Senate, they also have um effectively overseted

264
00:14:19,640 --> 00:14:22,280
Speaker 1: the SEC as well. And remember this is a time

265
00:14:22,320 --> 00:14:25,520
Speaker 1: where lawmakers are considering what new laws to pass to

266
00:14:25,680 --> 00:14:29,400
Speaker 1: protect consumers in an event like this. There's remember Sam

267
00:14:29,400 --> 00:14:32,160
Speaker 1: bang Winfried himself was supposed to speak virtually at the

268
00:14:32,200 --> 00:14:37,120
Speaker 1: House hearing and is no longer doing so according to

269
00:14:37,160 --> 00:14:40,200
Speaker 1: our knowledge. And you did see chairman of the committee

270
00:14:40,160 --> 00:14:43,120
Speaker 1: at Maxine Waters come out with a statement saying, really

271
00:14:43,160 --> 00:14:47,200
Speaker 1: that Americans deserve answers here. And you know, while she,

272
00:14:47,920 --> 00:14:51,600
Speaker 1: you know, applauded authorities for doing your job, is doing

273
00:14:51,640 --> 00:14:56,120
Speaker 1: so right before the hearing, maybe didn't allow here customers

274
00:14:56,120 --> 00:14:59,200
Speaker 1: to hear a full story from Saint Mankind freed under oath,

275
00:14:59,360 --> 00:15:02,960
Speaker 1: as he testified to the House. But even without being

276
00:15:03,040 --> 00:15:05,480
Speaker 1: under oath, as you know, Sam bankman Fried has been

277
00:15:05,560 --> 00:15:10,640
Speaker 1: speaking volubly outside of hearings in the general public, in

278
00:15:10,760 --> 00:15:13,880
Speaker 1: Twitter spaces, in interviews. I mean, how could that potentially

279
00:15:13,920 --> 00:15:19,560
Speaker 1: affect the prosecutions against him. I'm sure that authorities are

280
00:15:19,600 --> 00:15:23,120
Speaker 1: picking up everything he said. I know, even as a reporter,

281
00:15:23,480 --> 00:15:27,560
Speaker 1: I have transcripts of as many of the interviews as

282
00:15:27,600 --> 00:15:32,440
Speaker 1: possible that he has made recently, including yesterday, uh, you know,

283
00:15:32,520 --> 00:15:34,880
Speaker 1: hours before he was arrested, he was speaking on a

284
00:15:34,920 --> 00:15:38,880
Speaker 1: Twitter spaces trying to get retail traders a sense of

285
00:15:38,960 --> 00:15:42,520
Speaker 1: what had happened here. The other thing, remember, an elite

286
00:15:42,560 --> 00:15:46,000
Speaker 1: testimony that he was supposed to deliver today at the

287
00:15:46,040 --> 00:15:49,160
Speaker 1: Senate at the House. I'm sorry he never had a

288
00:15:49,160 --> 00:15:53,400
Speaker 1: greed necessarily to speak at the Senate. He had said

289
00:15:53,560 --> 00:15:55,880
Speaker 1: that he doesn't have the data he needs, and he

290
00:15:55,920 --> 00:15:59,000
Speaker 1: put a lot of blame on the Chapter eleven committee

291
00:15:59,040 --> 00:16:01,680
Speaker 1: here and the that are dealing with the Chapter eleven

292
00:16:01,680 --> 00:16:04,160
Speaker 1: of f t X, which I know are completely new

293
00:16:04,200 --> 00:16:07,720
Speaker 1: management about t X, about t X okay in our

294
00:16:07,760 --> 00:16:10,760
Speaker 1: last minute here Shannali. With these hearings s getting underway

295
00:16:10,800 --> 00:16:15,000
Speaker 1: here now with Sam Bankman freed facing prosecution, what's the

296
00:16:15,080 --> 00:16:20,040
Speaker 1: sense of the appetite for crypto regulation coming out of Washington,

297
00:16:20,120 --> 00:16:24,360
Speaker 1: d C. Is it turning to or bipartisan consensus that

298
00:16:24,440 --> 00:16:28,680
Speaker 1: there need to be more guardrails around crypto There has

299
00:16:28,800 --> 00:16:32,520
Speaker 1: always been that demand in the last couple of years,

300
00:16:32,560 --> 00:16:35,800
Speaker 1: especially as more retail traders have gotten into the industry,

301
00:16:36,120 --> 00:16:38,840
Speaker 1: and as the industry is pushed for for a one

302
00:16:38,960 --> 00:16:42,600
Speaker 1: K inclusion or sc E t s that are tied

303
00:16:42,640 --> 00:16:46,800
Speaker 1: to cryptocurrencies. So the question then becomes, does the SEC

304
00:16:47,160 --> 00:16:49,840
Speaker 1: and the c f t C feel more empowered here

305
00:16:50,120 --> 00:16:53,640
Speaker 1: to be tougher on the industry because a lot of

306
00:16:53,640 --> 00:16:56,040
Speaker 1: people in the industry are starting to Europe for a fight,

307
00:16:56,360 --> 00:16:59,440
Speaker 1: recognizing that because of f t X regulation might get

308
00:16:59,560 --> 00:17:02,840
Speaker 1: much later and just quickly. What further fall o are

309
00:17:02,880 --> 00:17:05,719
Speaker 1: you expecting for crypto as an asset itself. I mean,

310
00:17:05,760 --> 00:17:08,280
Speaker 1: obviously it took a big dive after the bankruptcy of

311
00:17:08,320 --> 00:17:10,399
Speaker 1: f t X. Could there be more fallout in terms

312
00:17:10,400 --> 00:17:14,240
Speaker 1: of evaluations for crypto which is quickly? You know, Wall

313
00:17:14,240 --> 00:17:17,040
Speaker 1: Street is nothing but opportunistic. There's plenty of people here

314
00:17:17,119 --> 00:17:19,719
Speaker 1: that say that this is an opportunity for the big

315
00:17:19,800 --> 00:17:22,000
Speaker 1: kids to come in. You do have crypto hovering above

316
00:17:22,040 --> 00:17:26,880
Speaker 1: seventeen thousand, four hundred, so it hasn't seen a bigger

317
00:17:26,960 --> 00:17:30,560
Speaker 1: drop off in recent weeks since we've seen the f

318
00:17:30,640 --> 00:17:33,600
Speaker 1: t X to baccle. But again, you know, if anyone's guest,

319
00:17:33,640 --> 00:17:36,160
Speaker 1: it depends on what happens to other companies move forward,

320
00:17:36,200 --> 00:17:39,080
Speaker 1: as you know, many effacing bankruptcies. Yeah. Absolutely, thanks for

321
00:17:39,119 --> 00:17:41,639
Speaker 1: the Shanali, great having you with us. Bloomberg Global Financial

322
00:17:41,680 --> 00:17:45,640
Speaker 1: correspondent Channelli Boss joining us live this morning from Washington,

323
00:17:45,720 --> 00:17:48,280
Speaker 1: d C. Ahead of the House Financial Services hearing on

324
00:17:48,320 --> 00:17:52,360
Speaker 1: the f t X collapse, now apparently without the testimony

325
00:17:52,760 --> 00:17:56,159
Speaker 1: of Sam Bankman freed following his arrest in the Bahamas.

326
00:17:56,240 --> 00:18:02,400
Speaker 1: Much more to come. You're listening to Bloomberg dating markets,

327
00:18:02,520 --> 00:18:05,560
Speaker 1: headlines and breaking news twenty four hours a day at

328
00:18:05,600 --> 00:18:09,520
Speaker 1: Bloomberg dot Com, the Bloomberg Business at and at Bloomberg Quicktake.

329
00:18:09,720 --> 00:18:18,720
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

330
00:18:18,880 --> 00:18:22,359
Speaker 1: US Dock Index futures and European equities are rising amid

331
00:18:22,400 --> 00:18:25,359
Speaker 1: forecast inflation in the world's largest economy will post the

332
00:18:25,359 --> 00:18:28,720
Speaker 1: lowest figure this year, warranting a less hawkish federal Reserve.

333
00:18:29,000 --> 00:18:31,359
Speaker 1: We checked the markets all day long here at Bloomberg

334
00:18:31,480 --> 00:18:33,960
Speaker 1: s and P futures they're up about ten points or

335
00:18:34,000 --> 00:18:36,280
Speaker 1: a quarter percent. Of future is also up a quarter

336
00:18:36,320 --> 00:18:38,920
Speaker 1: percent or eighty three points, and NASTAG futures up three

337
00:18:38,960 --> 00:18:41,920
Speaker 1: ten percent or thirty five points. The decks in Germany

338
00:18:42,000 --> 00:18:43,920
Speaker 1: is up half percent. Of the ten year treasury of

339
00:18:44,000 --> 00:18:47,080
Speaker 1: three thirty seconds you three point five nine percent yield

340
00:18:47,080 --> 00:18:49,960
Speaker 1: on the two year four point three seven percent. And

341
00:18:50,000 --> 00:18:52,639
Speaker 1: that's a Bloomberg Business Flash. Now here's Amy Morris with

342
00:18:52,760 --> 00:18:55,199
Speaker 1: Moore on what's going on around the world. Amy, all right,

343
00:18:55,200 --> 00:18:58,480
Speaker 1: thank you. Karen, White House National Security Adviser Jake Sullivan's

344
00:18:58,480 --> 00:19:00,879
Speaker 1: as the US is in talks with Russia to come

345
00:19:00,920 --> 00:19:03,360
Speaker 1: up with a deal to free former Marine Paul Whalen.

346
00:19:03,400 --> 00:19:06,680
Speaker 1: He's been held in Russia since eighteen. President Biden is

347
00:19:06,720 --> 00:19:09,679
Speaker 1: expected to sign the Respect for Marriage Act into law today.

348
00:19:09,760 --> 00:19:13,240
Speaker 1: The bipartisan bill aims to protect marriage for lgbt Q

349
00:19:13,480 --> 00:19:16,359
Speaker 1: and ed A racial couples, and requires all states to

350
00:19:16,400 --> 00:19:20,359
Speaker 1: recognize marriages legally performed in other states. And sports, Monday

351
00:19:20,440 --> 00:19:23,240
Speaker 1: Night Football, the New England Patriots beat the Cardinals in

352
00:19:23,280 --> 00:19:26,360
Speaker 1: the NBA, the Nets beat the Wizards, the Celtics win

353
00:19:26,640 --> 00:19:30,120
Speaker 1: in hockey, the Rangers beat the Devil's and World Cup semifinals.

354
00:19:30,119 --> 00:19:33,120
Speaker 1: Get Underweight Today. Global News twenty four hours a day

355
00:19:33,119 --> 00:19:35,760
Speaker 1: on errand on Bloomberg Quick Take, powered by more than

356
00:19:35,760 --> 00:19:38,399
Speaker 1: twenty seven hundred journalists and analysts in more than one

357
00:19:38,480 --> 00:19:42,119
Speaker 1: hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan,

358
00:19:42,240 --> 00:19:44,600
Speaker 1: Amy Morris, thank you. It is five twenty three on

359
00:19:44,680 --> 00:19:47,840
Speaker 1: Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak. As

360
00:19:47,880 --> 00:19:50,240
Speaker 1: we wait the last piece of data before the Federal

361
00:19:50,280 --> 00:19:53,080
Speaker 1: Reserve puts out its last policy decision of the year.

362
00:19:53,119 --> 00:19:56,560
Speaker 1: The November Consumer Price Index is due out in just

363
00:19:56,760 --> 00:19:58,840
Speaker 1: a bit more than three hours time, and ahead of it,

364
00:19:58,840 --> 00:20:02,040
Speaker 1: we welcome in Nika Gufta, director of economic research at

365
00:20:02,080 --> 00:20:04,199
Speaker 1: Wisdom Tree. I think it's great to speak with you

366
00:20:04,240 --> 00:20:06,200
Speaker 1: this morning. That was some interesting framing we just heard

367
00:20:06,240 --> 00:20:11,439
Speaker 1: from Karen Moscow the possibility that cooler inflation print signs

368
00:20:11,440 --> 00:20:15,720
Speaker 1: of continued cooling could mean a more or a less

369
00:20:15,880 --> 00:20:18,680
Speaker 1: hawkish message from the Fed. Is that what you're expecting.

370
00:20:20,359 --> 00:20:23,359
Speaker 1: A very good morning, Nathan. You know that messaging is

371
00:20:23,440 --> 00:20:27,200
Speaker 1: quite apt. I would say, you know, the market, today's

372
00:20:27,200 --> 00:20:29,679
Speaker 1: event is is definitely going to be quite pivotal for

373
00:20:29,720 --> 00:20:32,240
Speaker 1: the markets, but it's important to keep in mind that,

374
00:20:32,280 --> 00:20:34,640
Speaker 1: you know, CPI is one of the most backward looking

375
00:20:34,720 --> 00:20:38,359
Speaker 1: data series and it tells us little about where inflation

376
00:20:38,440 --> 00:20:41,720
Speaker 1: is really heading. Our view for today is um you know,

377
00:20:42,040 --> 00:20:46,399
Speaker 1: the key focus is going to be on the services

378
00:20:46,440 --> 00:20:50,000
Speaker 1: side of inflation, as it accounts for nearly sixty overall inflation,

379
00:20:50,520 --> 00:20:53,040
Speaker 1: and we are expecting at least a point three percent

380
00:20:53,320 --> 00:20:57,320
Speaker 1: month or month um you know fall in core CPI

381
00:20:57,440 --> 00:21:01,600
Speaker 1: for November and clearly that would mark the second consecutive

382
00:21:01,600 --> 00:21:06,520
Speaker 1: decline since September, so that would be quite an important

383
00:21:06,640 --> 00:21:09,200
Speaker 1: change um. But you know, as far as the FED

384
00:21:09,280 --> 00:21:11,919
Speaker 1: is concerned, I think they've you know, most of their

385
00:21:11,960 --> 00:21:14,679
Speaker 1: messaging has been pretty well telegraphed. I don't think the

386
00:21:14,680 --> 00:21:18,679
Speaker 1: CPR report could change this the Fed's decision that we're

387
00:21:18,680 --> 00:21:21,720
Speaker 1: going to get this week of raising rates by fifty

388
00:21:21,720 --> 00:21:25,320
Speaker 1: basis points. Um. But I think the messaging will will

389
00:21:25,520 --> 00:21:29,000
Speaker 1: allow markets, um, you know, to see some of those

390
00:21:29,040 --> 00:21:34,160
Speaker 1: financial conditions ease further as we move ahead. Apart from

391
00:21:34,160 --> 00:21:36,920
Speaker 1: cp I, what are you looking at for signs that

392
00:21:36,960 --> 00:21:41,199
Speaker 1: we are seeing the trajectory for inflation move in the

393
00:21:41,200 --> 00:21:44,960
Speaker 1: direction that the FED wants it to go? Well in

394
00:21:45,000 --> 00:21:47,320
Speaker 1: the US? I think, you know, if you look at growth,

395
00:21:47,320 --> 00:21:50,560
Speaker 1: we're still at below potential growth. And what we're really

396
00:21:50,600 --> 00:21:55,800
Speaker 1: looking at is that supply and demand balance in how um,

397
00:21:56,040 --> 00:22:00,000
Speaker 1: you know, we're we were continuing continuingly tracking the continue

398
00:22:00,119 --> 00:22:02,880
Speaker 1: in claims and we see them, uh you know, we

399
00:22:03,760 --> 00:22:06,760
Speaker 1: on a on a weekly basis rise. So that is

400
00:22:06,800 --> 00:22:08,760
Speaker 1: telling us we are going to get some cooling in

401
00:22:08,760 --> 00:22:11,240
Speaker 1: the labor market. And I think that is is a

402
00:22:11,320 --> 00:22:13,280
Speaker 1: data point that the FED has been looking at quite

403
00:22:13,280 --> 00:22:16,840
Speaker 1: closely as to when we begin to see a bit

404
00:22:16,920 --> 00:22:20,120
Speaker 1: more cooling in the labor market. That's when we'll start

405
00:22:20,160 --> 00:22:23,040
Speaker 1: to see that feed on uh you know, to lower

406
00:22:23,040 --> 00:22:26,199
Speaker 1: inflation prints. And that's when you see that services side

407
00:22:26,200 --> 00:22:29,320
Speaker 1: of inflation, which has been quite sicky on the on

408
00:22:29,359 --> 00:22:33,480
Speaker 1: the upside, uh you know, begin to loosen in terms

409
00:22:33,520 --> 00:22:37,280
Speaker 1: of its momentum going forward. Sounds like you're putting more

410
00:22:37,359 --> 00:22:42,320
Speaker 1: stock on the labor side of the of the Federal

411
00:22:42,400 --> 00:22:47,320
Speaker 1: reserves mandate rather necessarily than the inflation side of the mandate.

412
00:22:47,359 --> 00:22:50,920
Speaker 1: What's it going to take for the Fed to see

413
00:22:51,400 --> 00:22:54,159
Speaker 1: that labor is getting to where it wants it to be.

414
00:22:54,200 --> 00:22:57,080
Speaker 1: And we've got about thirty seconds left here, sure. I mean,

415
00:22:57,119 --> 00:22:59,840
Speaker 1: the last you know print that we got for PA

416
00:23:00,119 --> 00:23:02,879
Speaker 1: rules was very strong, about two D sixty three K,

417
00:23:03,520 --> 00:23:06,119
Speaker 1: and clearly that's not pointing in the direction of a

418
00:23:06,160 --> 00:23:09,280
Speaker 1: loosening labor market. Now, we're continuing to hear quite a

419
00:23:09,280 --> 00:23:12,760
Speaker 1: few announcements on uh, you know, cuts in in uh

420
00:23:12,760 --> 00:23:15,439
Speaker 1: in the employment rate for a number of firms, you know,

421
00:23:15,680 --> 00:23:20,840
Speaker 1: very very important firms across tech, across a number of sectors.

422
00:23:20,880 --> 00:23:23,760
Speaker 1: And I think that will slowly begin to feed into

423
00:23:23,800 --> 00:23:26,879
Speaker 1: the data um which will allow for a cooling of

424
00:23:27,040 --> 00:23:29,960
Speaker 1: the labor market. And that's I think that that pivotal

425
00:23:29,960 --> 00:23:32,800
Speaker 1: moment when the FED will relies that you know they've

426
00:23:32,840 --> 00:23:36,040
Speaker 1: they've now got to handle on the markets. UM for now,

427
00:23:36,080 --> 00:23:38,640
Speaker 1: I think inflation is going to trend on the much

428
00:23:38,720 --> 00:23:41,720
Speaker 1: higher level versus where you know the FED is targeting,

429
00:23:41,760 --> 00:23:44,320
Speaker 1: and hence it's going to make it difficult for UM

430
00:23:44,359 --> 00:23:47,840
Speaker 1: equity investors to just expect to pivot in a natural

431
00:23:47,920 --> 00:23:51,440
Speaker 1: tilt towards equities moving higher. Thanks for the Seneca great

432
00:23:51,480 --> 00:23:53,159
Speaker 1: having it with a Seneca group, to a a director of

433
00:23:53,200 --> 00:23:57,359
Speaker 1: economic research at Wisdom Trade. Now, let's skill check of

434
00:23:57,480 --> 00:24:01,359
Speaker 1: today's Bloomberg weather forecast. High pressure will move in from

435
00:24:01,359 --> 00:24:03,159
Speaker 1: the western part of the state today and that's going

436
00:24:03,200 --> 00:24:05,840
Speaker 1: to result in lots of sunshine across the Tri State area.

437
00:24:06,040 --> 00:24:08,920
Speaker 1: Temperatures today, they should top out pretty close to forty degrees.

438
00:24:09,280 --> 00:24:12,200
Speaker 1: It's generally clear over night thirty, temperatures in the teens,

439
00:24:12,280 --> 00:24:15,320
Speaker 1: near twenty in the suburbs. Overnight lots of sunshine. For tomorrow,

440
00:24:15,320 --> 00:24:18,040
Speaker 1: we're gonna be close to forty. Rain develops on Thursday,

441
00:24:18,200 --> 00:24:19,760
Speaker 1: may be mixed with wet snow at the start a

442
00:24:19,840 --> 00:24:22,720
Speaker 1: high of forty five. I'm Rob Carolyn with your three

443
00:24:22,760 --> 00:24:28,640
Speaker 1: day forecast on Bloomberg eleven three oh broadcasting live from

444
00:24:28,640 --> 00:24:32,480
Speaker 1: the Bloomberg Interactive Brokers Studio in New York, Bloomberg E

445
00:24:32,520 --> 00:24:36,480
Speaker 1: Living Free to Washington, d C, Bloomberg one to Boston,

446
00:24:36,600 --> 00:24:39,800
Speaker 1: Bloomberg one, O six one does San Francisco, Bloomberg and

447
00:24:39,800 --> 00:24:42,880
Speaker 1: I'm sixty to the country Sirius XM T one nine

448
00:24:43,280 --> 00:24:46,800
Speaker 1: and around the globe the Bloomberg Business and Bloomberg Radio

449
00:24:46,880 --> 00:24:56,199
Speaker 1: dot Com. This is Bloomberg Daybreak. It's five twenty eight

450
00:24:56,240 --> 00:24:58,760
Speaker 1: on Wall Street. Good morning. I'm Nathan Hagar and I'm

451
00:24:58,840 --> 00:25:01,640
Speaker 1: Karen Moscow and where just about four hours away from

452
00:25:01,680 --> 00:25:03,440
Speaker 1: the open of US trading. Let's get you up to

453
00:25:03,480 --> 00:25:05,520
Speaker 1: date on the news you need to know at this hour.

454
00:25:05,920 --> 00:25:08,439
Speaker 1: They begin with the arrest of Sam Bankman Free. The

455
00:25:08,520 --> 00:25:13,359
Speaker 1: US government has criminally indicted the disgraced FTX co founder Bloomberg.

456
00:25:13,400 --> 00:25:16,639
Speaker 1: Steve Rappaport joins US Live with the latest. Steve, Good morning,

457
00:25:16,720 --> 00:25:19,800
Speaker 1: Good morning, Karen, and Nathan. Sam Bankman Freed was supposed

458
00:25:19,840 --> 00:25:22,560
Speaker 1: to testify today before a House committee about his stunning

459
00:25:22,560 --> 00:25:25,639
Speaker 1: collapse of the crypto firm. Instead, he will stand before

460
00:25:25,680 --> 00:25:29,520
Speaker 1: a judge as US prosecutors begin efforts to have him extradited. Ballot.

461
00:25:29,520 --> 00:25:32,359
Speaker 1: Crypto founder and CEO Bobby Lee Chunk tells us the

462
00:25:32,440 --> 00:25:35,280
Speaker 1: arrest shows a need for greater oversight of the industry.

463
00:25:35,480 --> 00:25:38,480
Speaker 1: We need to flesh out the bad actors really need

464
00:25:39,440 --> 00:25:43,560
Speaker 1: regulation and to show that rule law is important and

465
00:25:43,560 --> 00:25:45,919
Speaker 1: that people can't just do willie nilly. The government is

466
00:25:45,960 --> 00:25:48,919
Speaker 1: expected to unseal the charges against Bankman Freed this morning

467
00:25:49,040 --> 00:25:52,680
Speaker 1: Live in New York. I'm Steve Rappaport Bloomberg Daybreak. All right, Steve, thanks.

468
00:25:52,680 --> 00:25:55,280
Speaker 1: The reaction is pouring in this morning to the arrest

469
00:25:55,320 --> 00:25:58,600
Speaker 1: of Sam Bankman Freed. Bloomberg's Joanna Ostinger says senior leaders

470
00:25:58,600 --> 00:26:01,440
Speaker 1: in crypto are wondering what's X for the industry. There's

471
00:26:01,480 --> 00:26:04,600
Speaker 1: still a lot of nervousness and the attitude of if

472
00:26:04,640 --> 00:26:07,440
Speaker 1: this can happen to something like FTX that seems so solid,

473
00:26:07,640 --> 00:26:09,800
Speaker 1: People are starting to poke around and say, well, where

474
00:26:09,800 --> 00:26:13,240
Speaker 1: else could there be issues? Bloomberg John Austiner says crypto

475
00:26:13,320 --> 00:26:15,960
Speaker 1: prices are still stabilizing and taking a look at bitcoin

476
00:26:16,119 --> 00:26:18,240
Speaker 1: right now, it's up one and a half percent on

477
00:26:18,280 --> 00:26:21,560
Speaker 1: the session, trading around seventeen thousand, four hundred. Well, turning

478
00:26:21,600 --> 00:26:24,119
Speaker 1: to the economy now, Nathan traders have their eyes on

479
00:26:24,160 --> 00:26:26,800
Speaker 1: the November Consumer Price Index is due out of a

480
00:26:26,960 --> 00:26:30,479
Speaker 1: thirty am Wall Street time Jetted Movie, head of market

481
00:26:30,480 --> 00:26:33,879
Speaker 1: analysis with Brewin Dolphins, says it's not all about the

482
00:26:33,880 --> 00:26:37,560
Speaker 1: headline number today. The important thing is observing the trends. Also,

483
00:26:37,680 --> 00:26:39,840
Speaker 1: all the trainings have it patty into the right direction

484
00:26:39,880 --> 00:26:43,040
Speaker 1: in terms of the headline CPI. Important will be the

485
00:26:43,160 --> 00:26:45,840
Speaker 1: core data, of course, and that could still remain at

486
00:26:45,880 --> 00:26:49,120
Speaker 1: this second. Janet Movie with Bruin Dolphin believes it will

487
00:26:49,160 --> 00:26:52,080
Speaker 1: take some time for core CPI to come down in

488
00:26:52,160 --> 00:26:55,040
Speaker 1: today's inflation data come just a day before the feds

489
00:26:55,080 --> 00:26:58,080
Speaker 1: next policy decision. Consensus calls for the Central Bank to

490
00:26:58,200 --> 00:27:00,800
Speaker 1: raise rates another fifty basis points tomorrow, no matter what

491
00:27:00,960 --> 00:27:04,040
Speaker 1: comes from the CPI print well. In corporate news this morning,

492
00:27:04,119 --> 00:27:06,800
Speaker 1: Nathan shares of Oracle are up to in a third percent.

493
00:27:07,160 --> 00:27:10,920
Speaker 1: The software company reported quarterly sales that beat estimates thanks

494
00:27:10,920 --> 00:27:14,040
Speaker 1: to strong performance from its digital health records unit, and

495
00:27:14,119 --> 00:27:17,040
Speaker 1: two of Elon Musk's companies are making headlines today. Care

496
00:27:17,040 --> 00:27:19,800
Speaker 1: in The Washington Post reports Twitter has dissolved its Trust

497
00:27:19,880 --> 00:27:23,440
Speaker 1: and Safety Council and SpaceX is offering to sell insider

498
00:27:23,480 --> 00:27:26,440
Speaker 1: shares at a price that would raise that company's valuation

499
00:27:26,480 --> 00:27:29,040
Speaker 1: to about a hundred forty billion dollars. I don't know

500
00:27:29,160 --> 00:27:32,320
Speaker 1: from Asia. Today, Nathan, Hong Kong is scrapping some of

501
00:27:32,359 --> 00:27:36,000
Speaker 1: its last remaining COVID restrictions. The city will lift a

502
00:27:36,040 --> 00:27:39,880
Speaker 1: ban on international arrivals going to bars or restaurants and

503
00:27:40,000 --> 00:27:44,040
Speaker 1: stop requiring people to scan a QR code to enter venues.

504
00:27:44,359 --> 00:27:47,240
Speaker 1: Futures this morning are on the rise. SMP Future is

505
00:27:47,320 --> 00:27:50,080
Speaker 1: up about thirteen points down, futures up a hundred three,

506
00:27:50,400 --> 00:27:54,119
Speaker 1: and Nasday futures up forty five. Straight ahead your latest

507
00:27:54,200 --> 00:27:58,760
Speaker 1: local headlines, plus a check of sports. And this is Bloomberg.

508
00:28:03,359 --> 00:28:06,080
Speaker 1: Thank you carrying. It is thirty one on Wall Street.

509
00:28:06,080 --> 00:28:08,280
Speaker 1: Amy Morris is here with more on what's going on

510
00:28:08,320 --> 00:28:10,359
Speaker 1: in New York and around the world. Good morning, Amy,

511
00:28:10,520 --> 00:28:13,040
Speaker 1: Good morning Nathan. New York City health officials are once

512
00:28:13,080 --> 00:28:17,040
Speaker 1: again urging residents to wear masks. New York City's Health Commissioner,

513
00:28:17,160 --> 00:28:21,080
Speaker 1: Dr Ashwyn Vasson is warning there is currently a triedmic threat.

514
00:28:21,160 --> 00:28:27,360
Speaker 1: We are facing unprecedented levels of flu, We're facing unprecedented

515
00:28:27,480 --> 00:28:31,080
Speaker 1: levels of r s FE, and we're seeing an increase

516
00:28:31,240 --> 00:28:34,600
Speaker 1: in COVID cases. How experts now recommending getting a flu

517
00:28:34,720 --> 00:28:38,160
Speaker 1: shot of booster and wearing a mask indoors in crowded settings.

518
00:28:38,480 --> 00:28:40,840
Speaker 1: To find a COVID booster or flu vaccine, you can

519
00:28:40,880 --> 00:28:44,600
Speaker 1: go to Vaccine finder dot NYC dot gov. Brooklyn hospitals

520
00:28:44,640 --> 00:28:46,880
Speaker 1: are still dealing with the after effects of a cyber

521
00:28:46,920 --> 00:28:49,600
Speaker 1: attack that hit them last month. The New York Times

522
00:28:49,600 --> 00:28:52,680
Speaker 1: reports one Brooklyn Health continues to serve patients and some

523
00:28:52,800 --> 00:28:56,160
Speaker 1: of New York's poorest neighborhoods after a cyber attack forced

524
00:28:56,200 --> 00:28:59,760
Speaker 1: some critical services offline. Cyber security experts are working to

525
00:28:59,800 --> 00:29:04,280
Speaker 1: get three hospitals, Interfaith Medical Center, Brookdale Hospital Medical Center,

526
00:29:04,480 --> 00:29:08,120
Speaker 1: and Kingsbrook Jewish Medical Center fully back online. New York

527
00:29:08,120 --> 00:29:11,360
Speaker 1: Transit officials told city lawmakers there are about four hundred

528
00:29:11,400 --> 00:29:14,760
Speaker 1: cameras operating on subway cars throughout the city, part of

529
00:29:14,760 --> 00:29:17,800
Speaker 1: a push to increase safety and ease passenger fears. The

530
00:29:17,840 --> 00:29:22,000
Speaker 1: Metropolitan Transportation Authority is also paying a million dollars every

531
00:29:22,040 --> 00:29:26,000
Speaker 1: month for private security guards to roam subway platforms. In

532
00:29:26,040 --> 00:29:29,840
Speaker 1: addition to city police officers, Mayor Eric Adams and Governor

533
00:29:29,920 --> 00:29:32,400
Speaker 1: Kathy Hocoll have been trying to make the trains feel

534
00:29:32,400 --> 00:29:35,400
Speaker 1: more safe for passengers in a system that's recovered only

535
00:29:35,400 --> 00:29:40,040
Speaker 1: about of pre pandemic ridership and New Jersey allocating more

536
00:29:40,080 --> 00:29:42,720
Speaker 1: than twenty four million dollars for improvements in and around

537
00:29:42,720 --> 00:29:46,120
Speaker 1: public transit facilities. The Safe Streets to Transit Program and

538
00:29:46,120 --> 00:29:49,680
Speaker 1: the Transit Village Program will help fund access to public transportation.

539
00:29:49,960 --> 00:29:52,240
Speaker 1: Global News twenty four hours a day on airand on

540
00:29:52,360 --> 00:29:55,200
Speaker 1: Bloomberg Quick Take, powered by more than twenty seven hundred

541
00:29:55,280 --> 00:29:58,560
Speaker 1: journalists and analysts in more than one hundred twenty countries.

542
00:29:58,720 --> 00:30:06,720
Speaker 1: I'm Amy Morris, and this Bloomberg Nathan. Thank you Amy,

543
00:30:06,840 --> 00:30:09,160
Speaker 1: thirty three on Wall Street Time for the Bloomberg Sports Update,

544
00:30:09,200 --> 00:30:11,120
Speaker 1: brought to you by tri State Out You. Here's John

545
00:30:11,160 --> 00:30:13,680
Speaker 1: Stones shown all right. Nathan wins for the Rangers and

546
00:30:13,720 --> 00:30:15,600
Speaker 1: the Nets, and both of now won four games in

547
00:30:15,600 --> 00:30:17,680
Speaker 1: a row at the Garden, thrilling win for the Rangers.

548
00:30:17,680 --> 00:30:20,000
Speaker 1: They trailed the Devils to nothing early on rally to

549
00:30:20,080 --> 00:30:22,800
Speaker 1: tie one four three on a Philip he Will goal

550
00:30:22,800 --> 00:30:25,320
Speaker 1: at two fifteen of overtime hands the Devil's their first

551
00:30:25,560 --> 00:30:27,640
Speaker 1: two game losing space since the first two games of

552
00:30:27,680 --> 00:30:30,960
Speaker 1: the season. It ends their eleven game road win straight.

553
00:30:31,000 --> 00:30:33,360
Speaker 1: The Nets one in Washington one twelve to one hundred

554
00:30:33,360 --> 00:30:36,479
Speaker 1: for Kevin Durant thirty points, nine rebounds, six assists. Mother

555
00:30:36,560 --> 00:30:39,000
Speaker 1: Day Football at Arizona. Third play of the game, Arizona

556
00:30:39,040 --> 00:30:42,240
Speaker 1: quarterback Kyler Murray carded off of the parent torn A

557
00:30:42,320 --> 00:30:45,440
Speaker 1: c l The Patriots and Cardinals were tied. Third quarter,

558
00:30:45,640 --> 00:30:47,440
Speaker 1: toy On the quarterbacks left play because he takes the

559
00:30:47,440 --> 00:30:50,160
Speaker 1: shot fo staff, he dropped back contra Crowstown. The copy

560
00:30:50,200 --> 00:30:55,360
Speaker 1: hop kicks closing year side books loss down the right side,

561
00:30:55,520 --> 00:30:59,800
Speaker 1: what are you gonna be? Side puts out how scoop

562
00:31:02,360 --> 00:31:04,760
Speaker 1: and the A five Sports tub with the call. Pats

563
00:31:04,800 --> 00:31:07,920
Speaker 1: went on to win to thirteen. That's not the outcome.

564
00:31:08,000 --> 00:31:10,920
Speaker 1: The Jets wanted. The Jets and Pats both seven and six,

565
00:31:11,000 --> 00:31:13,880
Speaker 1: but New England has the tiebreaker, having beaten the Jets twice.

566
00:31:13,920 --> 00:31:17,440
Speaker 1: The Chargers also seven and six. Three way tie right

567
00:31:17,480 --> 00:31:19,760
Speaker 1: now for the last a SE playoff spot. The Jets

568
00:31:19,840 --> 00:31:23,000
Speaker 1: on Sunday come home to play the red hot Detroit Lions,

569
00:31:23,040 --> 00:31:25,600
Speaker 1: and it sounds like Jets quarterback Mike White will be

570
00:31:25,720 --> 00:31:28,280
Speaker 1: able to play after tests on his injured ribs. Ken

571
00:31:28,360 --> 00:31:31,440
Speaker 1: Croatia pull out another victory. They've won only once in

572
00:31:31,600 --> 00:31:34,640
Speaker 1: regulation with a couple of penalty kick victories just like

573
00:31:34,840 --> 00:31:38,240
Speaker 1: four years ago and today and guitar. It's Croatia against

574
00:31:38,360 --> 00:31:41,080
Speaker 1: Argentina in the winner plays in Sunday's World Cup final.

575
00:31:41,360 --> 00:31:44,600
Speaker 1: John Stashiellar Bloomberg Sports, Nathan all Right, John, thank you

576
00:31:44,680 --> 00:31:47,760
Speaker 1: Bloomberg Sports. Spot to you by Audie. Don't let someone

577
00:31:47,840 --> 00:31:51,000
Speaker 1: else drive off in the outie model you've always wanted.

578
00:31:51,280 --> 00:31:53,880
Speaker 1: Visit your local try state autie dealer to get behind

579
00:31:53,920 --> 00:31:57,760
Speaker 1: the wheel of yours today, or visit autie Offers dot

580
00:31:57,840 --> 00:32:03,360
Speaker 1: com for more information on Wall Street, It's time for

581
00:32:03,400 --> 00:32:05,800
Speaker 1: the Tri State Business Report. Here with that is Bloomberg's

582
00:32:05,840 --> 00:32:09,120
Speaker 1: at Quarry. Food delivery companies are backing a bill in

583
00:32:09,200 --> 00:32:11,840
Speaker 1: New York City that would amend the city's camp on

584
00:32:11,920 --> 00:32:15,160
Speaker 1: the fees they can charge restaurants. The bill would require

585
00:32:15,200 --> 00:32:19,560
Speaker 1: companies to offer basic delivery services at the capped fiftent commission,

586
00:32:19,960 --> 00:32:23,040
Speaker 1: but let them charge restaurants a premium for things like marketing.

587
00:32:23,640 --> 00:32:26,880
Speaker 1: New York regulators and law enforcement are starting to crack

588
00:32:26,960 --> 00:32:30,520
Speaker 1: down on an onslaught of illicit pot sellers. Scores of

589
00:32:30,640 --> 00:32:34,120
Speaker 1: so called weed bodegas have popped up in storefronts across

590
00:32:34,200 --> 00:32:38,520
Speaker 1: the city. Hawking, pre rolled joints, edibles, and other things.

591
00:32:38,960 --> 00:32:41,920
Speaker 1: The Port Authority of New York and New Jersey had

592
00:32:41,960 --> 00:32:45,320
Speaker 1: its raining race to double a minus by Fitch Ratings

593
00:32:45,440 --> 00:32:50,160
Speaker 1: because of the transportation hubs economic recovery after the pandemic downturn.

594
00:32:50,680 --> 00:32:55,120
Speaker 1: Fitch says the authorities bridges, tunnels, aviation and port facilities

595
00:32:55,480 --> 00:32:59,360
Speaker 1: are approaching or have achieved a full traffic volume. At

596
00:32:59,400 --> 00:33:03,040
Speaker 1: your Bloomberg Dry State Business report, I mid corey okay ed,

597
00:33:03,120 --> 00:33:06,080
Speaker 1: thank you. It's five thirty six on Wall Street. The

598
00:33:06,240 --> 00:33:10,240
Speaker 1: following is an editorial from Bloomberg Opinion. This editorial was

599
00:33:10,280 --> 00:33:13,320
Speaker 1: written by the Bloomberg Editorial Board. Have you heard of

600
00:33:13,400 --> 00:33:18,400
Speaker 1: chat GPT yet? It's a thrilling, fixing, ontologically mesmerizing new

601
00:33:18,480 --> 00:33:22,480
Speaker 1: technology created by the research group Open Ai. In essence,

602
00:33:22,880 --> 00:33:26,480
Speaker 1: chat GPT is a bot trained to generate humanlike responses

603
00:33:26,520 --> 00:33:30,400
Speaker 1: to user inputs on request. It can produce basic software code,

604
00:33:30,680 --> 00:33:35,040
Speaker 1: rudimentary financial analysis, amusing poems and songs, and more. Chat

605
00:33:35,160 --> 00:33:39,600
Speaker 1: GPT exemplifies a widening array of artificial intelligence tools that

606
00:33:39,760 --> 00:33:44,400
Speaker 1: may soon transform entire industries. As yet, policymakers seem largely

607
00:33:44,480 --> 00:33:47,320
Speaker 1: unaware of this revolution, let alone prepared for it, They

608
00:33:47,320 --> 00:33:49,920
Speaker 1: should greet it in a spirit of optimism while being

609
00:33:49,960 --> 00:33:53,480
Speaker 1: attentive to its potential risks for better and worse. Chat

610
00:33:53,640 --> 00:33:56,760
Speaker 1: GPT heralds a very different world in the making. This

611
00:33:56,960 --> 00:33:59,920
Speaker 1: editorial was written by the Bloomberg Editorial Board. For more

612
00:34:00,000 --> 00:34:03,080
Speaker 1: Bloomberg opinion, please go to Bloomberg dot com, slash Opinion

613
00:34:03,320 --> 00:34:05,520
Speaker 1: or O P I n go on the Bloomberg Terminal.

614
00:34:05,800 --> 00:34:09,040
Speaker 1: This has been Bloomberg Opinion, and you can hear Bloomberg

615
00:34:09,080 --> 00:34:12,880
Speaker 1: opinion editorials every weekday at this time. Terminal customers can

616
00:34:12,960 --> 00:34:16,160
Speaker 1: read more at O P I n go. Another story

617
00:34:16,280 --> 00:34:19,800
Speaker 1: we're watching this morning, China is delaying a closely watched

618
00:34:19,840 --> 00:34:22,840
Speaker 1: economic policy meeting due to start this week after a

619
00:34:23,000 --> 00:34:27,680
Speaker 1: surge of COVID infections in Beijing. The Central Economic Work

620
00:34:27,760 --> 00:34:31,800
Speaker 1: Conference was supposed to begin on Thursday. It's usually attended

621
00:34:31,840 --> 00:34:36,120
Speaker 1: by President Shi Jinping. Sources tell Bloomberg News there is

622
00:34:36,200 --> 00:34:40,239
Speaker 1: no set timetable for when that conference is going to

623
00:34:40,360 --> 00:34:44,280
Speaker 1: be rescheduled. It's now five thirty eight on Wall Street.

624
00:34:44,440 --> 00:34:47,440
Speaker 1: Up next on Bloomberg Daybreak, we continue to preview the

625
00:34:47,640 --> 00:34:50,640
Speaker 1: latest inflation data November c p I and what it

626
00:34:50,680 --> 00:34:53,560
Speaker 1: will mean for the Fed Tom poor Sully, the chief

627
00:34:53,680 --> 00:34:58,120
Speaker 1: US economist at RBC Capital Markets, joins us straight ahead.

628
00:34:58,280 --> 00:35:04,839
Speaker 1: This is Bloomberg Markets headlines and breaking news twenty four

629
00:35:04,880 --> 00:35:07,920
Speaker 1: hours a day at Bloomberg dot com, the Bloomberg Business

630
00:35:07,960 --> 00:35:11,120
Speaker 1: at and at Bloomberg Quick Take, this is a Bloomberg

631
00:35:11,239 --> 00:35:19,600
Speaker 1: Business lash and I'm Karen Moscow and this updates brought

632
00:35:19,640 --> 00:35:22,840
Speaker 1: to you by SEI. Built on advanced technologies and fifty

633
00:35:22,920 --> 00:35:26,520
Speaker 1: years of innovation, SEI offers asset managers a comprehensive and

634
00:35:26,600 --> 00:35:30,680
Speaker 1: flexible operations outsourcing platform. Go to c i C dot com,

635
00:35:30,880 --> 00:35:34,960
Speaker 1: slash Managers us AT. Index futures and European equities on

636
00:35:35,000 --> 00:35:38,040
Speaker 1: the rise this morning as we await the latest reading

637
00:35:38,160 --> 00:35:40,919
Speaker 1: on inflation. The CPI is out at eight thirty wells

638
00:35:40,960 --> 00:35:44,680
Speaker 1: Street time right now, futures again higher SMP futures of

639
00:35:44,760 --> 00:35:47,719
Speaker 1: fifteen points and down futures of a hundred nineteen. They're

640
00:35:47,760 --> 00:35:49,600
Speaker 1: both up about a third of upper cent, and NAS

641
00:35:49,680 --> 00:35:52,080
Speaker 1: day futures are up fifty two points, or four tenths

642
00:35:52,160 --> 00:35:54,919
Speaker 1: of upper cent. The decks in Germany's up seven tenths

643
00:35:54,960 --> 00:35:57,000
Speaker 1: of upper cent. The ten your treasury up four third

644
00:35:57,040 --> 00:35:59,560
Speaker 1: day seconds, you know, three point five nine percent. They

645
00:35:59,640 --> 00:36:02,600
Speaker 1: yield the two year four point three seven percent nine

646
00:36:02,680 --> 00:36:05,560
Speaker 1: excret oil is up one percent of eighty five cents

647
00:36:05,600 --> 00:36:08,439
Speaker 1: at seventy four dollars two cents of barrel comics gold

648
00:36:08,520 --> 00:36:10,560
Speaker 1: up three tenths per cent, or five dollars ten cents

649
00:36:10,600 --> 00:36:14,279
Speaker 1: at seventeen ninety announced. The euro one point oh five

650
00:36:14,360 --> 00:36:16,640
Speaker 1: three two against the dollar, British found one point to

651
00:36:16,800 --> 00:36:19,759
Speaker 1: two eight to the and one thirty seven point six zero,

652
00:36:20,120 --> 00:36:23,400
Speaker 1: and bitcoin is up one point four percent at seventeen thousand,

653
00:36:23,480 --> 00:36:26,640
Speaker 1: four hundred dollars. That's a Bloomberg business flash. Now here's

654
00:36:26,640 --> 00:36:29,560
Speaker 1: Amy Morris with more unless going on around the world. Amy,

655
00:36:29,880 --> 00:36:32,520
Speaker 1: all right, thank you, Karen. President Biden forming an inter

656
00:36:32,640 --> 00:36:36,480
Speaker 1: agency group to bide anti Semitism and other forms of discrimination.

657
00:36:36,840 --> 00:36:40,560
Speaker 1: The group will work to quote counter anti Semitism, Islamophobia,

658
00:36:40,680 --> 00:36:44,319
Speaker 1: and related forms of bias. Commuters are spending more time

659
00:36:44,400 --> 00:36:47,279
Speaker 1: in transit. Data from the research firm move It show

660
00:36:47,360 --> 00:36:50,560
Speaker 1: the average post pandemic commute increased by four minutes in

661
00:36:50,640 --> 00:36:54,600
Speaker 1: New York City, Toronto and Milan. And sports Monday Night football,

662
00:36:54,640 --> 00:36:57,440
Speaker 1: the New England Paytriot's beat the Cardinals in the NBA,

663
00:36:57,600 --> 00:37:00,320
Speaker 1: the Nets beat the Wizards, the Celtics win, and in hockey,

664
00:37:00,600 --> 00:37:03,520
Speaker 1: the Rangers beat the Devil's World Cup semifinals get underway.

665
00:37:03,560 --> 00:37:06,160
Speaker 1: Today globally was twenty four hours a day on errand

666
00:37:06,200 --> 00:37:09,200
Speaker 1: on Bloomberg Quick Take, powered by more than twenty d

667
00:37:09,360 --> 00:37:12,240
Speaker 1: journalists and analysts and more than one D twenty countries.

668
00:37:12,560 --> 00:37:15,600
Speaker 1: I'm anymore is this is Bloomberg? Nathan okay, Amy, thank you.

669
00:37:15,680 --> 00:37:18,920
Speaker 1: It's five forty two on Wall Street. This is Bloomberg Daybreak.

670
00:37:18,960 --> 00:37:21,640
Speaker 1: I'm Nathan Hagar along with Karen Moscow, taking a look

671
00:37:21,680 --> 00:37:24,080
Speaker 1: at some of the other stories making news this morning.

672
00:37:24,520 --> 00:37:27,960
Speaker 1: In a pre market trading, we're watching shares of Oracle.

673
00:37:28,080 --> 00:37:31,400
Speaker 1: The company reported quarterly sales that beat estimates thanks to

674
00:37:31,480 --> 00:37:33,920
Speaker 1: a strong effort from its digital health records unit. We

675
00:37:34,000 --> 00:37:38,200
Speaker 1: get more from Bloomberg's Charlie Pellett. Oracle overcame softer demand

676
00:37:38,360 --> 00:37:43,360
Speaker 1: for information technology services and a choppy economy. Sales increased

677
00:37:43,400 --> 00:37:46,960
Speaker 1: eighteen percent to twelve point three billion dollars in the

678
00:37:47,080 --> 00:37:52,040
Speaker 1: period ended November, compared with analysts average ustament of twelve

679
00:37:52,160 --> 00:37:56,440
Speaker 1: billion dollars, According to data compiled by Bloomberg. Cloud revenue,

680
00:37:56,520 --> 00:37:59,360
Speaker 1: the highly watched segment that Oracle has been trying to

681
00:37:59,480 --> 00:38:03,799
Speaker 1: expand rose to forty three percent to three point eight

682
00:38:03,880 --> 00:38:07,640
Speaker 1: billion dollars in the fiscal second quarter. The segment produced

683
00:38:07,800 --> 00:38:11,560
Speaker 1: forty five percent year over year growth in the prior quarter.

684
00:38:12,040 --> 00:38:15,840
Speaker 1: In New York, Charlie Pellett Bloomberg deybreak all right, Charlie, Thanks,

685
00:38:15,960 --> 00:38:18,399
Speaker 1: and shares of Oracle right now are higher by more

686
00:38:18,520 --> 00:38:21,520
Speaker 1: than two percent in pre market trading. Well, Nathan. Another

687
00:38:21,640 --> 00:38:24,920
Speaker 1: story from Corporate America that we're watching this morning Sears

688
00:38:25,000 --> 00:38:28,320
Speaker 1: hometown stores as foul for Chapter eleven bankruptcy. It's a

689
00:38:28,400 --> 00:38:31,520
Speaker 1: branch of the retailer that focuses on selling appliances, hardware,

690
00:38:31,560 --> 00:38:34,719
Speaker 1: and garden equipment. Sears spun off the hometown business in

691
00:38:35,640 --> 00:38:39,000
Speaker 1: to raise cash where it's struggling parent company on Wall Street.

692
00:38:39,040 --> 00:38:41,400
Speaker 1: More job cuts around the way, Karen, We're learning Goldman

693
00:38:41,440 --> 00:38:43,680
Speaker 1: Sachs is looking to slash at least a few hundred

694
00:38:43,760 --> 00:38:47,200
Speaker 1: more positions as it restructures its consumer business. More on

695
00:38:47,280 --> 00:38:50,640
Speaker 1: that from Bloomberg's shre not Ragin. There's obviously been a

696
00:38:50,760 --> 00:38:54,160
Speaker 1: lot of scrutiny on Goldman's retail banking operations. Remember that

697
00:38:54,320 --> 00:38:57,080
Speaker 1: is not the core of the bank's business. It obviously

698
00:38:57,160 --> 00:38:59,840
Speaker 1: made A four into that space, trying to court me

699
00:39:00,040 --> 00:39:02,960
Speaker 1: Street consumers, but it hasn't quite gone according to plan.

700
00:39:03,120 --> 00:39:06,360
Speaker 1: And this year in particular, that have been mounting losses

701
00:39:06,719 --> 00:39:10,239
Speaker 1: in that division, losses that have accelerated even beyond their

702
00:39:10,320 --> 00:39:13,359
Speaker 1: early projections. Bloomberg Street not roj And says the latest

703
00:39:13,400 --> 00:39:16,560
Speaker 1: cut show Goldman moving beyond its annual exercise of weeding

704
00:39:16,600 --> 00:39:19,680
Speaker 1: out under performing staff. Now let's move on to the

705
00:39:20,040 --> 00:39:23,640
Speaker 1: big economic data we're all waiting for this morning. The

706
00:39:23,760 --> 00:39:27,040
Speaker 1: latest read on inflation consumer prices for the month of

707
00:39:27,080 --> 00:39:30,400
Speaker 1: November come out at eight thirty Wall Street time this morning,

708
00:39:30,880 --> 00:39:34,600
Speaker 1: just one day ahead of the FEDS latest policy decision.

709
00:39:35,120 --> 00:39:38,560
Speaker 1: We're joined now by Tom Porcelli, Managing Director, chief US

710
00:39:38,600 --> 00:39:42,960
Speaker 1: economist at RBC Capital Markets. Tom, Good morning. What are

711
00:39:43,000 --> 00:39:46,640
Speaker 1: we going to get from the data this morning? Good morning? UM? Yeah, Look,

712
00:39:46,680 --> 00:39:49,160
Speaker 1: I think it's probably I think consented is probably right. Um.

713
00:39:49,239 --> 00:39:51,120
Speaker 1: I think it's gonna be around a three tenths on

714
00:39:51,239 --> 00:39:54,759
Speaker 1: both headline and core. Um that that that outcome will

715
00:39:54,800 --> 00:39:57,319
Speaker 1: push down the year and year pace we're both um.

716
00:39:57,440 --> 00:39:59,000
Speaker 1: So I think it will be you know, sort of

717
00:39:59,080 --> 00:40:02,160
Speaker 1: more of of of what we um saw last month,

718
00:40:02,200 --> 00:40:04,040
Speaker 1: which is to say, you know, the year and year

719
00:40:04,080 --> 00:40:08,160
Speaker 1: pace moving in the right direction. What does this particular

720
00:40:08,239 --> 00:40:12,319
Speaker 1: print tell us about the general direction for inflation moving

721
00:40:12,360 --> 00:40:15,840
Speaker 1: into three? Does it say anything? I mean, look, I

722
00:40:15,960 --> 00:40:18,960
Speaker 1: think we have to be mindful that CPI in particular

723
00:40:19,120 --> 00:40:22,360
Speaker 1: is really a lacking indicator. I mean that that that

724
00:40:22,520 --> 00:40:25,080
Speaker 1: is just reality. So there's things that feed into in

725
00:40:25,600 --> 00:40:27,880
Speaker 1: this CPI report that suggests that we're moving in the

726
00:40:27,960 --> 00:40:29,560
Speaker 1: right direction. I think that there are elements of the

727
00:40:29,640 --> 00:40:32,320
Speaker 1: t p I UM in particular that really sort of

728
00:40:32,680 --> 00:40:35,520
Speaker 1: drive home that that we're moving in the right direction there. UM.

729
00:40:35,680 --> 00:40:37,520
Speaker 1: But I think you even have to look at other factors,

730
00:40:37,600 --> 00:40:39,880
Speaker 1: like you know, sort of all the inventory build that

731
00:40:39,960 --> 00:40:42,000
Speaker 1: we've seen over the you know, sort of the prior

732
00:40:42,160 --> 00:40:46,080
Speaker 1: year UM really sort of coming back now UM to uh,

733
00:40:46,280 --> 00:40:49,480
Speaker 1: you know, sort of drive home that goods prices in particular,

734
00:40:49,600 --> 00:40:52,880
Speaker 1: core goods prices UM, you know, are are going to

735
00:40:52,960 --> 00:40:56,239
Speaker 1: continue to decelerate into twenty three. I mean that has

736
00:40:56,280 --> 00:40:59,600
Speaker 1: been a pretty pretty um high conviction call for us

737
00:41:00,360 --> 00:41:02,640
Speaker 1: UM for for a while now, and so I think

738
00:41:02,680 --> 00:41:04,680
Speaker 1: by the end of you know, in one year from now,

739
00:41:04,719 --> 00:41:07,279
Speaker 1: I think we're gonna be a very different place, UM,

740
00:41:07,320 --> 00:41:09,840
Speaker 1: a much better place from an inflation perspective. Well, that

741
00:41:09,960 --> 00:41:12,600
Speaker 1: has a lot more to do with supply chains. Ironing

742
00:41:12,680 --> 00:41:16,320
Speaker 1: out the federal reserve tightening policy doesn't have much effect

743
00:41:16,360 --> 00:41:18,560
Speaker 1: on that, doesn't. No, I think that's right. In fact

744
00:41:18,600 --> 00:41:20,640
Speaker 1: that you know, look we said this many times. You know,

745
00:41:20,800 --> 00:41:23,640
Speaker 1: the FED in in a lot of ways, UM is

746
00:41:23,719 --> 00:41:27,160
Speaker 1: fighting yesterday's war on on inflation UM with with this

747
00:41:27,239 --> 00:41:30,520
Speaker 1: aggressive um um hiking cycle that they have in place.

748
00:41:30,880 --> 00:41:32,000
Speaker 1: You know. The other thing I think is sort of

749
00:41:32,080 --> 00:41:35,120
Speaker 1: interesting from UM from a FED perspective is, you know,

750
00:41:35,160 --> 00:41:37,600
Speaker 1: in so many ways um pal gave us an off

751
00:41:37,680 --> 00:41:41,239
Speaker 1: ramp um to UM sort of on from the from

752
00:41:41,280 --> 00:41:44,000
Speaker 1: the inflation from an inflation perspective. Basically, you know, during

753
00:41:44,040 --> 00:41:46,400
Speaker 1: that last speech UM, you know he was he was

754
00:41:46,440 --> 00:41:48,640
Speaker 1: pretty clear that you know, there's a there's a real

755
00:41:48,719 --> 00:41:53,200
Speaker 1: case be made for excluding UM shelter prices from the

756
00:41:53,840 --> 00:41:56,759
Speaker 1: from the calculation. UM. If if if that's true, which

757
00:41:56,800 --> 00:41:58,640
Speaker 1: by the way, we would agree with because I think

758
00:41:58,680 --> 00:42:01,680
Speaker 1: we all get that the component UM the way that

759
00:42:01,760 --> 00:42:05,680
Speaker 1: that's constructed UM, it works with a pretty meaningful lags UM.

760
00:42:05,800 --> 00:42:07,680
Speaker 1: But but if but if that's true, that you know

761
00:42:07,760 --> 00:42:10,719
Speaker 1: he's building an off ramp UM, then I think that,

762
00:42:10,840 --> 00:42:14,040
Speaker 1: you know, he's he's basically giving us a lower hurdle

763
00:42:14,600 --> 00:42:17,200
Speaker 1: um to to sort of for them to not necessarily

764
00:42:17,239 --> 00:42:18,799
Speaker 1: clean victory. I don't think they're ever going to really

765
00:42:18,840 --> 00:42:21,400
Speaker 1: do that in any meaningful way. But I think for

766
00:42:21,600 --> 00:42:23,080
Speaker 1: for them to say, hey, look, we think that we

767
00:42:23,160 --> 00:42:26,360
Speaker 1: have the right policy in place, um and uh and

768
00:42:26,840 --> 00:42:28,800
Speaker 1: and we're moving in the right direction, and that should

769
00:42:28,800 --> 00:42:30,440
Speaker 1: be enough for them. UM. So I think that that

770
00:42:30,600 --> 00:42:32,759
Speaker 1: was the groundwork that was laid by them. So is

771
00:42:32,800 --> 00:42:36,000
Speaker 1: there a possibility then that this CPI print could give

772
00:42:36,320 --> 00:42:40,480
Speaker 1: the FED the impetus to actually use that off ramp

773
00:42:40,560 --> 00:42:43,520
Speaker 1: as opposed to just signaling it. Yeah, no, not today. UM.

774
00:42:43,600 --> 00:42:45,319
Speaker 1: I don't think that's for I don't think that's for today.

775
00:42:45,360 --> 00:42:47,439
Speaker 1: I think that's for sort of, you know, slightly down

776
00:42:47,480 --> 00:42:49,920
Speaker 1: the road, you know, into twenty three. UM. But I

777
00:42:50,040 --> 00:42:51,800
Speaker 1: do think that, you know, the the idea that we

778
00:42:51,840 --> 00:42:54,560
Speaker 1: can we can you know, in at least in theory,

779
00:42:54,680 --> 00:42:57,320
Speaker 1: exclude the shelter component. I mean, look, it's it's a

780
00:42:57,400 --> 00:43:00,640
Speaker 1: massive wave, right, it's the way to core. Um. And

781
00:43:00,880 --> 00:43:04,160
Speaker 1: while you know, we saw some good um a good

782
00:43:04,200 --> 00:43:09,160
Speaker 1: development last month with the owner's equivalent rent in particular,

783
00:43:09,239 --> 00:43:10,800
Speaker 1: slowing down a little bit. We still think it's a

784
00:43:10,880 --> 00:43:13,960
Speaker 1: little bit early, UM for that kind of slowing to

785
00:43:14,200 --> 00:43:18,719
Speaker 1: sort of really sort of be be um very much

786
00:43:18,760 --> 00:43:21,520
Speaker 1: in place. UM. But we think in the coming months, um,

787
00:43:21,960 --> 00:43:24,520
Speaker 1: that that will continue to slow down. So so even

788
00:43:24,560 --> 00:43:27,200
Speaker 1: if they didn't want to exclude it, UM, we still

789
00:43:27,280 --> 00:43:29,439
Speaker 1: think that, you know, over the sort of the early

790
00:43:29,520 --> 00:43:32,000
Speaker 1: part of the coming year, UM, inflation will still get

791
00:43:32,040 --> 00:43:35,520
Speaker 1: into a pretty good place because it will start slowing down. Well,

792
00:43:35,560 --> 00:43:36,960
Speaker 1: what is it going to take do you think our

793
00:43:37,080 --> 00:43:40,560
Speaker 1: last minute here tom, for FED to be satisfied and

794
00:43:40,800 --> 00:43:43,400
Speaker 1: to if not just take the foot off the gas

795
00:43:43,680 --> 00:43:47,239
Speaker 1: of a jumbo rate hikes, to actually pivot away, to

796
00:43:47,520 --> 00:43:50,160
Speaker 1: to start a cutting cycle here you know, Well, well,

797
00:43:50,360 --> 00:43:53,800
Speaker 1: well I think to stop the hiking cycle for starters.

798
00:43:53,880 --> 00:43:56,560
Speaker 1: I think we're there, right, I mean, you know, we're

799
00:43:56,800 --> 00:43:59,799
Speaker 1: only a few more hikes away um from the FED

800
00:44:00,040 --> 00:44:03,640
Speaker 1: the finishing this up, um and so uh so, so

801
00:44:03,800 --> 00:44:06,319
Speaker 1: we think, you know, terminal is is upon us. UM.

802
00:44:06,600 --> 00:44:08,960
Speaker 1: You know, we think our view has been that you'll

803
00:44:09,000 --> 00:44:11,160
Speaker 1: get to five or five and a quarter will be

804
00:44:11,239 --> 00:44:14,000
Speaker 1: your range. Um. We do think cuts are going to

805
00:44:14,080 --> 00:44:16,200
Speaker 1: happen in the coming year. UM. We think they'll happen

806
00:44:16,239 --> 00:44:17,680
Speaker 1: in the second half of the year, and what it

807
00:44:17,760 --> 00:44:21,600
Speaker 1: takes to get there, um is obviously inflation will have

808
00:44:21,760 --> 00:44:24,080
Speaker 1: to have continued to move in the right direction. Um,

809
00:44:24,200 --> 00:44:25,920
Speaker 1: you obviously need to check that box off. But I

810
00:44:26,000 --> 00:44:28,040
Speaker 1: think you know, to get to cut um, you're really

811
00:44:28,080 --> 00:44:30,080
Speaker 1: gonna see uh, you know, you're gonna need to see

812
00:44:30,520 --> 00:44:33,680
Speaker 1: more labor market deterioration, and we do expect that in

813
00:44:33,760 --> 00:44:36,160
Speaker 1: the coming year. Thanks so much, Tom, great having on

814
00:44:36,280 --> 00:44:39,279
Speaker 1: with us once again. Tom Porcelli, Managing Director, Chief US

815
00:44:39,320 --> 00:44:43,080
Speaker 1: Economists at RBC Capital Markets. As we await the November

816
00:44:43,160 --> 00:44:46,320
Speaker 1: consumer price data the cp I do out eight thirty

817
00:44:46,400 --> 00:44:48,680
Speaker 1: am Wall Street Time, we will have full coverage for

818
00:44:48,800 --> 00:44:52,200
Speaker 1: you throughout the day right here on Bloomberg Radio ahead

819
00:44:52,239 --> 00:44:55,520
Speaker 1: of the Fed policy decision coming up tomorrow. Much more

820
00:44:55,680 --> 00:45:02,520
Speaker 1: still to come. Stay with us. This is Bloomberg Markets,

821
00:45:02,640 --> 00:45:05,680
Speaker 1: Headlines and breaking news twenty four hours a day at

822
00:45:05,719 --> 00:45:09,120
Speaker 1: Bloomberg dot Com and Bloomberg Business at End at Bloomberg

823
00:45:09,200 --> 00:45:18,160
Speaker 1: Quick Take this. She's a Bloomberg Business lash and I'm

824
00:45:18,239 --> 00:45:21,000
Speaker 1: Karen Moscow. And futures are rising as we in a

825
00:45:21,080 --> 00:45:23,799
Speaker 1: wait inflation data, and we checked the markets all day

826
00:45:23,840 --> 00:45:26,680
Speaker 1: long year at Bloomberg. But SNP futures up about eighteen

827
00:45:26,760 --> 00:45:29,160
Speaker 1: points or four tens of upper cent. DAL futures have

828
00:45:29,280 --> 00:45:31,560
Speaker 1: four tens of upper cent or a hundred thirty nine points.

829
00:45:31,920 --> 00:45:34,160
Speaker 1: And as the ACT futures up half percent or sixty

830
00:45:34,239 --> 00:45:37,000
Speaker 1: points ten your treasury of four thirty seconds, he'll three

831
00:45:37,040 --> 00:45:39,279
Speaker 1: point five nine percent yield on the two year four

832
00:45:39,360 --> 00:45:42,400
Speaker 1: point three seven percent nine max. Screwed oil is at

833
00:45:42,440 --> 00:45:45,080
Speaker 1: one point two percent of eighty nine cents at seventy

834
00:45:45,120 --> 00:45:48,040
Speaker 1: four dollars six cents of barrel comexs goal, there's up

835
00:45:48,080 --> 00:45:50,360
Speaker 1: three tents per cent or five dollars twenty cents at

836
00:45:50,400 --> 00:45:54,239
Speaker 1: seventeen ninety seven fifty announced the euro this morning one

837
00:45:54,320 --> 00:45:57,839
Speaker 1: point oh five three three against the dollar. That's little

838
00:45:57,920 --> 00:46:00,359
Speaker 1: changed against the dollar. British found one point you two

839
00:46:00,440 --> 00:46:03,319
Speaker 1: eight one and the end one thirty seven point six three.

840
00:46:03,840 --> 00:46:05,520
Speaker 1: And I'm looking at a bitcoin it's at one point

841
00:46:05,600 --> 00:46:09,480
Speaker 1: four percent at about seventeen thousand, four hundred dollars. And

842
00:46:09,560 --> 00:46:12,920
Speaker 1: that's a Bloomberg business flash. Nathan, Okay, Karen, thank you.

843
00:46:13,000 --> 00:46:15,440
Speaker 1: It's five fifty six on Wall Street time for our

844
00:46:15,520 --> 00:46:19,160
Speaker 1: daily Bloomberg Law Brief, exploring legal issues in the news. Today,

845
00:46:19,239 --> 00:46:21,799
Speaker 1: we look at the Federal Trade Commission suing to stop

846
00:46:21,920 --> 00:46:26,040
Speaker 1: Meta platforms from buying Within Unlimited, that's a virtual reality

847
00:46:26,160 --> 00:46:29,279
Speaker 1: fitness app. The FTC says Meta is trying to create

848
00:46:29,320 --> 00:46:31,840
Speaker 1: a monopoly in virtual reality in the same way it

849
00:46:31,880 --> 00:46:34,920
Speaker 1: says Facebook did when it bought Instagram and WhatsApp to

850
00:46:35,000 --> 00:46:39,279
Speaker 1: extend its dominance in social networking. Meta denies the allegation,

851
00:46:39,480 --> 00:46:42,000
Speaker 1: but a judge is going to decide whether to stop

852
00:46:42,080 --> 00:46:46,400
Speaker 1: the acquisition after a federal trial in San Jose, California.

853
00:46:46,520 --> 00:46:49,240
Speaker 1: For more on the matter, June Grosso speaks with Bloomberg

854
00:46:49,280 --> 00:46:53,640
Speaker 1: Intelligence senior litigation analyst Jennifer Ree. Why is the FTC

855
00:46:53,960 --> 00:46:58,120
Speaker 1: trying to stop Meta from buying Within What they're trying

856
00:46:58,160 --> 00:47:00,759
Speaker 1: to do? I think it's not makes same mistake that

857
00:47:00,880 --> 00:47:03,120
Speaker 1: they believe they made in the past when they cleared

858
00:47:03,400 --> 00:47:07,720
Speaker 1: FTCs acquisitions of Instagram and WhatsApp. They're looking at Meta

859
00:47:08,080 --> 00:47:10,719
Speaker 1: as a company that's trying to sort of take over

860
00:47:10,880 --> 00:47:14,600
Speaker 1: this burgeoning virtual reality space, and they see this acquisition

861
00:47:14,680 --> 00:47:18,200
Speaker 1: as part of that. Within makes virtual reality apps. It

862
00:47:18,280 --> 00:47:21,560
Speaker 1: has a very popular one for fitness called Supernatural, And

863
00:47:21,680 --> 00:47:24,919
Speaker 1: what the FTC claims is that if Meta didn't buy within,

864
00:47:25,360 --> 00:47:27,719
Speaker 1: they would be competing on their own because they have

865
00:47:27,880 --> 00:47:30,600
Speaker 1: the resources, and they have the wherewithal and the interest

866
00:47:30,960 --> 00:47:33,400
Speaker 1: in developing their own fitness app that would compete, and

867
00:47:33,440 --> 00:47:35,239
Speaker 1: it would be better for them to compete than to

868
00:47:35,400 --> 00:47:39,359
Speaker 1: buy within and go forward in virtual reality fitness that way.

869
00:47:39,640 --> 00:47:43,040
Speaker 1: So the allegations here is a potential competition that if

870
00:47:43,080 --> 00:47:45,640
Speaker 1: it didn't buy within, Meta would compete with them in

871
00:47:45,680 --> 00:47:48,400
Speaker 1: the future, even though it doesn't today. Is this a

872
00:47:48,520 --> 00:47:52,960
Speaker 1: test case for the FTC for its more aggressive strategy

873
00:47:53,160 --> 00:47:57,640
Speaker 1: on mergers, especially by the Silicon Valley giants. I think

874
00:47:57,680 --> 00:47:59,800
Speaker 1: it can be thought of that way, absolutely not just

875
00:48:00,000 --> 00:48:03,120
Speaker 1: a test case to try to expand the boundaries of

876
00:48:03,160 --> 00:48:06,080
Speaker 1: antitrust law and try to push some of these novel

877
00:48:06,160 --> 00:48:08,960
Speaker 1: theories and have some success in court with novel theories

878
00:48:09,000 --> 00:48:11,840
Speaker 1: that might open the way open the road in the

879
00:48:11,960 --> 00:48:14,839
Speaker 1: future to more easily challenge other deals. And I think

880
00:48:14,880 --> 00:48:18,200
Speaker 1: it's also part of trying to prevent big tech platforms

881
00:48:18,360 --> 00:48:21,520
Speaker 1: from continually growing through acquisition. You know, there's nothing wrong

882
00:48:21,600 --> 00:48:24,800
Speaker 1: with growing organically, but just trying to prevent this growth

883
00:48:24,920 --> 00:48:27,920
Speaker 1: that's happened over the last ten years through acquisition. So

884
00:48:28,239 --> 00:48:30,920
Speaker 1: it's sort of twofold, and you think it's an uphill

885
00:48:31,000 --> 00:48:33,840
Speaker 1: battle for the FTC. I think it's difficult because I

886
00:48:33,880 --> 00:48:37,239
Speaker 1: think it's very speculative. Again, if the documents show that

887
00:48:37,320 --> 00:48:40,959
Speaker 1: there were no plans to develop a virtual reality fitness app,

888
00:48:41,120 --> 00:48:43,279
Speaker 1: or there might have been plans that were nixed, but

889
00:48:43,440 --> 00:48:45,719
Speaker 1: nixed not because of the purchase of within but for

890
00:48:45,840 --> 00:48:49,400
Speaker 1: other reasons, you know, that kind of neutralizes this argument

891
00:48:49,440 --> 00:48:51,440
Speaker 1: that they would have been a potential competitor. And I

892
00:48:51,520 --> 00:48:54,200
Speaker 1: think that it's really hard to say, Hey, this company

893
00:48:54,400 --> 00:48:56,399
Speaker 1: was going to enter and you know what, if they had,

894
00:48:56,520 --> 00:48:59,720
Speaker 1: they would have been a vibrant competitor within very popular

895
00:48:59,760 --> 00:49:02,120
Speaker 1: fit us up. I think that's difficult to prove in court.

896
00:49:02,440 --> 00:49:04,320
Speaker 1: And I also think there could be some problems with

897
00:49:04,600 --> 00:49:07,719
Speaker 1: the defined relevant market here on limiting it to just

898
00:49:07,960 --> 00:49:12,720
Speaker 1: these virtual reality fitness up that's Bloomberg Intelligence Senior litigation

899
00:49:12,719 --> 00:49:15,759
Speaker 1: analyst Jennifer Rees speaking with Bloomberg's June Grosso. You can

900
00:49:15,800 --> 00:49:18,200
Speaker 1: catch more of that interview plus analysis of the latest

901
00:49:18,280 --> 00:49:21,480
Speaker 1: legal news by subscribing to the Bloomberg Law podcast or

902
00:49:21,560 --> 00:49:25,480
Speaker 1: downloading the show at Bloomberg dot com. Slash Podcasts and

903
00:49:25,520 --> 00:49:29,280
Speaker 1: attorneys can find exceptional legal research and business development tools

904
00:49:29,719 --> 00:49:32,640
Speaker 1: at Bloomberg law dot com and on the Bloomberg terminal

905
00:49:33,000 --> 00:49:36,680
Speaker 1: at b law go. SMB futures hired by seventeen points,

906
00:49:36,800 --> 00:49:38,920
Speaker 1: right now down Futures up a hundred thirty five and

907
00:49:39,000 --> 00:49:42,200
Speaker 1: NASTAC futures on the rise by sixty points. We check

908
00:49:42,280 --> 00:49:45,439
Speaker 1: your business headlines all the news you need to start

909
00:49:45,560 --> 00:49:49,279
Speaker 1: your day. Hour two of Bloomberg Day Break starts right now.