1
00:00:03,000 --> 00:00:06,320
Speaker 1: Live from the Bloomberg Interactive Brooker Studios is his Bloomberg

2
00:00:06,400 --> 00:00:10,000
Speaker 1: Daybreak for a Monday, December twelve coming up this hour.

3
00:00:10,440 --> 00:00:13,400
Speaker 1: A huge week for central banks, with the Fed, ECB

4
00:00:13,640 --> 00:00:17,360
Speaker 1: and Bank of England all making policy decisions. Treasury Secretary

5
00:00:17,440 --> 00:00:20,239
Speaker 1: Janet Yellen says inflation will be much lower by the

6
00:00:20,280 --> 00:00:24,160
Speaker 1: end of next year. Am JEN makes its biggest acquisition ever,

7
00:00:24,600 --> 00:00:27,200
Speaker 1: and the January six Committee gets a step closer to

8
00:00:27,240 --> 00:00:30,560
Speaker 1: its final report. I'm Amy Morris. New York subway officials

9
00:00:30,560 --> 00:00:33,239
Speaker 1: are looking at hiking fairs, and the area is bracing

10
00:00:33,280 --> 00:00:36,640
Speaker 1: for its first major snow event this season. John stash

11
00:00:36,640 --> 00:00:39,280
Speaker 1: Allard swards the Giants got blown out by Philadelphia, the

12
00:00:39,360 --> 00:00:44,959
Speaker 1: Jets lost in Buffalo, the Nicks sacrament them. That's all

13
00:00:45,120 --> 00:00:48,800
Speaker 1: trading ahead on Bloomberg Daybreak on Bloomberg eleven three on

14
00:00:48,920 --> 00:00:53,320
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh

15
00:00:53,400 --> 00:00:58,160
Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Syrius XM

16
00:00:58,200 --> 00:01:00,960
Speaker 1: one nine team and around the world Old on Bloomberg

17
00:01:01,040 --> 00:01:08,440
Speaker 1: Radio dot Com and via the Bloomberg Business app. Good Morning,

18
00:01:08,440 --> 00:01:11,440
Speaker 1: I'm Nathan Hagar, and I'm Karen Moscow and US DOT

19
00:01:11,520 --> 00:01:14,200
Speaker 1: index futures are on the rise this morning. It is

20
00:01:14,240 --> 00:01:15,960
Speaker 1: five oh one on Wall Street, and we check the

21
00:01:15,959 --> 00:01:18,320
Speaker 1: markets all day long year at bloomberg S and P

22
00:01:18,560 --> 00:01:21,360
Speaker 1: futures up seven points or two tenths of a percent,

23
00:01:21,560 --> 00:01:24,240
Speaker 1: Dow futures up forty one points or a tenth of

24
00:01:24,280 --> 00:01:26,959
Speaker 1: a percent, and NASDAIC futures are up twenty eight points

25
00:01:27,040 --> 00:01:30,119
Speaker 1: or a quarter percent. The decks in Germany is down

26
00:01:30,160 --> 00:01:33,280
Speaker 1: at tenth of a percent, and the tenure Treasury is

27
00:01:33,360 --> 00:01:36,240
Speaker 1: up ten thirty seconds here three point five four percent,

28
00:01:36,600 --> 00:01:39,040
Speaker 1: yield on the two year four point three two percent.

29
00:01:39,280 --> 00:01:42,119
Speaker 1: Nathan Karen, we begin this morning with a big week

30
00:01:42,160 --> 00:01:45,240
Speaker 1: for central bank decisions, both here and abroad. Let's get

31
00:01:45,240 --> 00:01:48,720
Speaker 1: a preview from Bloomberg's Michael McKee. Are you ready for risk?

32
00:01:48,840 --> 00:01:52,320
Speaker 1: We have a host of major market moving events this week. Tuesday,

33
00:01:52,520 --> 00:01:54,880
Speaker 1: us c P I will weigh on investors views of

34
00:01:54,920 --> 00:01:58,160
Speaker 1: what the Fed will and has to do. Wednesday, the

35
00:01:58,160 --> 00:02:00,360
Speaker 1: Fed will tell us not just a rate move, but

36
00:02:00,440 --> 00:02:03,720
Speaker 1: new economic forecasts and a new dot plot. How high

37
00:02:03,800 --> 00:02:06,440
Speaker 1: do they think US interest rates have to go? How

38
00:02:06,520 --> 00:02:08,840
Speaker 1: high will they have to go in Europe? Well, Thursday,

39
00:02:08,840 --> 00:02:11,680
Speaker 1: all eyes turned to the ECB, which will also be

40
00:02:11,720 --> 00:02:15,080
Speaker 1: moving rates up and offering new forecasts. What kind of

41
00:02:15,240 --> 00:02:18,640
Speaker 1: recession will they see? The Bank of England has already

42
00:02:18,680 --> 00:02:22,160
Speaker 1: forecast contraction, but with inflation high, they are expected to

43
00:02:22,240 --> 00:02:25,480
Speaker 1: raise rates again on Thursday. The question on thread Needle Street,

44
00:02:25,840 --> 00:02:29,440
Speaker 1: when do they stop? Michael McKie blue Berg Daybreak A

45
00:02:29,560 --> 00:02:31,639
Speaker 1: ry Michael, thank you well so far the juries out

46
00:02:31,639 --> 00:02:34,440
Speaker 1: and whether central banks are winning the war on inflation?

47
00:02:34,520 --> 00:02:38,600
Speaker 1: But Treasury Secretary Janet Yellen is optimistic. She says prices

48
00:02:38,600 --> 00:02:41,200
Speaker 1: should be much lower by the end of next year.

49
00:02:41,560 --> 00:02:44,760
Speaker 1: As long as there aren't any unexpected shocks to the economy,

50
00:02:45,080 --> 00:02:48,919
Speaker 1: I believe inflation will be lower. Um. I am very

51
00:02:49,040 --> 00:02:55,440
Speaker 1: hopeful that the labor market will remain quite healthy so

52
00:02:55,600 --> 00:03:00,200
Speaker 1: that people can feel good about their finances. In an

53
00:03:00,240 --> 00:03:03,880
Speaker 1: interview with CBS IS sixty minutes, Secretary Yellen said ending

54
00:03:03,960 --> 00:03:06,799
Speaker 1: Russia's war in Ukraine would be the single best thing

55
00:03:06,840 --> 00:03:10,040
Speaker 1: for the global economy. She says US support for Ukraine

56
00:03:10,080 --> 00:03:13,360
Speaker 1: will continue, quote as long as it takes. We're doing

57
00:03:13,400 --> 00:03:16,760
Speaker 1: everything we can to bring this war to a conclusion.

58
00:03:17,440 --> 00:03:23,600
Speaker 1: Of course, we're providing considerable help um to Ukraine, both

59
00:03:23,720 --> 00:03:28,040
Speaker 1: military and economic, and listeners in Washington can hear sixty

60
00:03:28,080 --> 00:03:32,720
Speaker 1: minutes from CBS Sunday nights at ten on Bloomberg. Support

61
00:03:32,760 --> 00:03:35,200
Speaker 1: for Ukraine will be high on the agenda, Karen, when

62
00:03:35,200 --> 00:03:38,360
Speaker 1: Group of seven leaders meet virtually today. The White House

63
00:03:38,360 --> 00:03:42,000
Speaker 1: says President Biden spoke with Ukrainian President vladimir's Lensky last

64
00:03:42,080 --> 00:03:45,080
Speaker 1: night to underscore his support. The US has promised thirty

65
00:03:45,080 --> 00:03:48,280
Speaker 1: eight billion dollars in military aid and delivered thirteen billion

66
00:03:48,320 --> 00:03:51,520
Speaker 1: in direct aid to Ukraine so far. Meantime, Nathan, the

67
00:03:51,600 --> 00:03:54,600
Speaker 1: US will send a delegation to China on the coming days.

68
00:03:54,720 --> 00:03:57,640
Speaker 1: The move follows up on President Biden's meeting with Chinese

69
00:03:57,680 --> 00:04:01,080
Speaker 1: President Sheijin, paying last month that at the G twenty,

70
00:04:01,200 --> 00:04:04,320
Speaker 1: the two countries have plenty of disagreements, including over Taiwan

71
00:04:04,440 --> 00:04:08,160
Speaker 1: and US moves to limit China's economic and technological influence.

72
00:04:08,440 --> 00:04:11,080
Speaker 1: We have moves on a Capitol Hills response to last

73
00:04:11,160 --> 00:04:15,000
Speaker 1: year's insurrection, Karen. The January six Committee has taken another

74
00:04:15,040 --> 00:04:17,719
Speaker 1: step on its way to producing its final report, with

75
00:04:17,800 --> 00:04:22,360
Speaker 1: a new subcommittee meeting. Bloomberg's Backster reports. The stated purpose

76
00:04:22,400 --> 00:04:25,600
Speaker 1: of the meeting possible prosecution on criminal charges coming out

77
00:04:25,600 --> 00:04:28,960
Speaker 1: of the insurrection. Congressman Adam Schiff on CBS has heard

78
00:04:29,000 --> 00:04:31,120
Speaker 1: here on Bloomberg. I think we're all certainly an agreement

79
00:04:31,320 --> 00:04:34,480
Speaker 1: that there is evidence of criminality here shifts as a

80
00:04:34,520 --> 00:04:37,040
Speaker 1: committee has been able to provide very important information to

81
00:04:37,120 --> 00:04:39,440
Speaker 1: the d o J. But just as important, I think

82
00:04:39,440 --> 00:04:42,560
Speaker 1: it makes an important statement, not a political one, but

83
00:04:42,760 --> 00:04:46,839
Speaker 1: a statement about the evidence of an attack on the

84
00:04:46,920 --> 00:04:50,200
Speaker 1: institutions for democracy and the peaceful transfer of power. Less

85
00:04:50,200 --> 00:04:53,880
Speaker 1: than two weeks until the curtain comes down in San Francisco.

86
00:04:53,920 --> 00:04:56,240
Speaker 1: I'm at Baxter Bloomberg Gay Break, all right, and thank

87
00:04:56,279 --> 00:04:58,039
Speaker 1: you all. Turning to the markets now, we have a

88
00:04:58,080 --> 00:05:00,080
Speaker 1: couple of deals to kick off the week in at

89
00:05:00,279 --> 00:05:02,719
Speaker 1: one in the biotech industry. Let me get the latest

90
00:05:02,760 --> 00:05:05,600
Speaker 1: live with the Bloomberg Steve Rappaport, Good morning, Steve, the

91
00:05:05,600 --> 00:05:08,640
Speaker 1: Good morning, Karen and Nathan Mgen plans to buy Horizon

92
00:05:08,680 --> 00:05:11,919
Speaker 1: Therapeutics at a valuation of twenty six billion dollars in

93
00:05:11,960 --> 00:05:15,039
Speaker 1: what would be its largest acquisition to date, sources telling

94
00:05:15,040 --> 00:05:18,640
Speaker 1: Bloomberg News, the biotech giant offered about one sixteen dollars

95
00:05:18,640 --> 00:05:22,080
Speaker 1: for each Horizon share. Horizon stock closing Friday at ninety

96
00:05:22,120 --> 00:05:25,280
Speaker 1: seven dollars and twenty seven cents shares jumping more than

97
00:05:25,320 --> 00:05:28,080
Speaker 1: eleven percent this morning in pre market trading. It's not

98
00:05:28,160 --> 00:05:30,400
Speaker 1: a done deal yet, though people familiar with the matters

99
00:05:30,400 --> 00:05:33,600
Speaker 1: say negotiations could still fall apart. Live to New York.

100
00:05:33,600 --> 00:05:36,560
Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you,

101
00:05:36,600 --> 00:05:39,480
Speaker 1: And we also have an acquisition involving Microsoft. The company

102
00:05:39,480 --> 00:05:41,599
Speaker 1: has agreed to buy a steak in the London Stock

103
00:05:41,680 --> 00:05:45,000
Speaker 1: Exchange Group. The deal gives Microsoft a four percent equity

104
00:05:45,040 --> 00:05:47,720
Speaker 1: holding as part of a new long term strategic partnership

105
00:05:47,960 --> 00:05:50,599
Speaker 1: stakes part of a broader tenure agreement to help the

106
00:05:50,640 --> 00:05:54,600
Speaker 1: London Stock Exchange owner developed data, analytics and cloud infrastructure

107
00:05:54,680 --> 00:05:58,200
Speaker 1: using Microsoft's products. We'll staying in London now, Nathan. We

108
00:05:58,240 --> 00:06:00,960
Speaker 1: have a couple of major storage that this morning centered

109
00:06:00,960 --> 00:06:03,680
Speaker 1: on the UK economy. There's fresh growth data from the

110
00:06:03,760 --> 00:06:07,200
Speaker 1: UK as the country grapples with widespread strikes. Let's go

111
00:06:07,240 --> 00:06:09,560
Speaker 1: to London and get the latest, Live with Bloomberg's James

112
00:06:09,600 --> 00:06:13,240
Speaker 1: wild Clock. Good morning, James, Good morning from a frosty UK. Karen.

113
00:06:13,320 --> 00:06:15,960
Speaker 1: The economy here expanded north point five percent in October

114
00:06:16,000 --> 00:06:18,800
Speaker 1: as business recovered output loft in public holidays after the

115
00:06:18,839 --> 00:06:21,360
Speaker 1: death of the Queen. But with strikes across the country

116
00:06:21,360 --> 00:06:25,160
Speaker 1: affecting health, transport and education, the outlook is much grimmer.

117
00:06:25,320 --> 00:06:27,599
Speaker 1: You can already see that in hospitality, with pubs and

118
00:06:27,640 --> 00:06:30,120
Speaker 1: restaurants saying Christmas party bookings are as bad as they

119
00:06:30,120 --> 00:06:33,359
Speaker 1: were during COVID as people canceled due to rail strikes.

120
00:06:33,600 --> 00:06:35,880
Speaker 1: The UK government is meeting this morning to discuss sending

121
00:06:35,880 --> 00:06:38,360
Speaker 1: in the army to fill in for workers walking out

122
00:06:38,560 --> 00:06:41,480
Speaker 1: in London. James Wilcock, Bloomberg, day break, All right, James,

123
00:06:41,480 --> 00:06:43,840
Speaker 1: thank you. And in banking news this morning, Reuter's is

124
00:06:43,880 --> 00:06:47,160
Speaker 1: reporting the Morgan Stanley plans to cut investment bankers annual

125
00:06:47,200 --> 00:06:50,320
Speaker 1: bonuses in Asia by as much as fifty percent this year.

126
00:06:50,680 --> 00:06:54,040
Speaker 1: Scale the cuts and its Asia business could possibly reuplicated

127
00:06:54,040 --> 00:06:57,039
Speaker 1: in the US and Europe, according to this report. Local

128
00:06:57,080 --> 00:06:59,880
Speaker 1: headlines in the check of Sports. Next, this is Bloomberg.

129
00:07:03,320 --> 00:07:05,440
Speaker 1: So five oh seven on Wall Street, we had thirty

130
00:07:05,480 --> 00:07:08,640
Speaker 1: two degrees in central parks. It's gonna stay Shuly today

131
00:07:08,640 --> 00:07:11,240
Speaker 1: in the sunshine, highs only near forty degrees, and we're

132
00:07:11,240 --> 00:07:13,400
Speaker 1: gonna get down to the upper twenties tonight. Welcome to

133
00:07:13,440 --> 00:07:16,440
Speaker 1: winter's bringing. Amy Morris for look what else is going

134
00:07:16,480 --> 00:07:18,440
Speaker 1: on in New York and around the world. Good morning Amy,

135
00:07:18,760 --> 00:07:21,320
Speaker 1: Good morning Nathan. More than thirty years after the bombing

136
00:07:21,360 --> 00:07:23,960
Speaker 1: of pan amp Like one oh three over lockerby Scotland

137
00:07:23,960 --> 00:07:27,280
Speaker 1: that killed two hundred seventy people, including thirty eight New

138
00:07:27,360 --> 00:07:31,280
Speaker 1: Jersey residents, a suspect is in US custody. Bert Ammerman's

139
00:07:31,360 --> 00:07:34,560
Speaker 1: brother Tom from New Jersey, says there's just no closure.

140
00:07:34,360 --> 00:07:37,560
Speaker 1: The two daughters at the Times six and four wife.

141
00:07:37,960 --> 00:07:40,640
Speaker 1: He was thirty six young. He didn't get to live

142
00:07:40,680 --> 00:07:42,880
Speaker 1: his life. The suspect is expected to make a court

143
00:07:42,880 --> 00:07:46,440
Speaker 1: appearance in Washington, d c. On criminal federal charges. New

144
00:07:46,480 --> 00:07:49,880
Speaker 1: York subway officials are looking to avoid a budget disaster.

145
00:07:50,080 --> 00:07:53,680
Speaker 1: The Metropolitan Transportation Authority says it could face a budget

146
00:07:53,680 --> 00:07:57,360
Speaker 1: gap of nearly three billion dollars by The New York

147
00:07:57,360 --> 00:08:01,080
Speaker 1: Times reports they're considering raising the transit systems base fair

148
00:08:01,120 --> 00:08:05,360
Speaker 1: a couple of times by just over three dollars. It

149
00:08:05,400 --> 00:08:07,760
Speaker 1: would be the first time they've talked about raising fairs

150
00:08:07,920 --> 00:08:12,320
Speaker 1: since the pandemic began. Forecasters say up to five inches

151
00:08:12,360 --> 00:08:15,760
Speaker 1: of snow could fall on parts of northwestern New Jersey today.

152
00:08:16,120 --> 00:08:18,440
Speaker 1: It is the first major snow event of the season.

153
00:08:18,800 --> 00:08:22,120
Speaker 1: Governor Phil Murphy cautioned motorists to be careful when driving

154
00:08:22,240 --> 00:08:25,680
Speaker 1: north of It's, where a wintry mix of snow and

155
00:08:25,720 --> 00:08:29,560
Speaker 1: ice is expected. It is the largest oil spill in

156
00:08:29,680 --> 00:08:33,920
Speaker 1: Keystone Pipeline history, more than five eighty eight thousand gallons

157
00:08:33,920 --> 00:08:37,360
Speaker 1: of crude. Officials say they've got the spill contained for now.

158
00:08:37,679 --> 00:08:41,120
Speaker 1: Warren Martin is the executive director of Kansas Strong, a

159
00:08:41,200 --> 00:08:45,560
Speaker 1: nonprofit organization that educates people about the oil and gas industry.

160
00:08:45,960 --> 00:08:47,680
Speaker 1: Spill is a little bit different than some of the

161
00:08:47,679 --> 00:08:50,480
Speaker 1: past pipeline spills because it involves a body of water,

162
00:08:51,120 --> 00:08:53,800
Speaker 1: and so it's not real certain how the e p

163
00:08:53,920 --> 00:08:55,920
Speaker 1: A Is going to respond to that. They have to

164
00:08:56,280 --> 00:08:59,520
Speaker 1: approve starting back up the pipeline, and so there's a

165
00:08:59,600 --> 00:09:02,160
Speaker 1: remediing Asian process that takes place to clean up all

166
00:09:02,160 --> 00:09:06,040
Speaker 1: the oil to analyze the pipeline. Industry insiders believe the

167
00:09:06,040 --> 00:09:09,280
Speaker 1: pipe will be up and running around December twentie. NASA's

168
00:09:09,280 --> 00:09:12,320
Speaker 1: Orion spacecraft splashed down in the Pacific Ocean off the

169
00:09:12,360 --> 00:09:15,560
Speaker 1: coast of Mexico yesterday, bringing a successful and to a

170
00:09:15,640 --> 00:09:18,920
Speaker 1: twenty five day test flight that sent the uncrewed vehicle

171
00:09:18,960 --> 00:09:21,720
Speaker 1: around the Moon and back to Earth. Artimist one helps

172
00:09:21,760 --> 00:09:24,640
Speaker 1: pave the way for NASA's program to return humans to

173
00:09:24,679 --> 00:09:27,720
Speaker 1: the surface of the Moon. Global News twenty four hours

174
00:09:27,720 --> 00:09:30,520
Speaker 1: a day on airand on Bloomberg Quick Take, powered by

175
00:09:30,600 --> 00:09:33,679
Speaker 1: more than twenty d journalists and analysts in more than

176
00:09:33,679 --> 00:09:37,160
Speaker 1: one hundred twenty countries. I'm Amy Morris. This is Bloomberg,

177
00:09:37,240 --> 00:09:44,320
Speaker 1: Nathan Okay, Amy, thank you. Grown up to five ten

178
00:09:44,400 --> 00:09:46,640
Speaker 1: on Wall Street time for the Bloomberg Sports Update, brought

179
00:09:46,640 --> 00:09:48,720
Speaker 1: to you by Trice State OUTI. Good morning, John Stowns,

180
00:09:49,000 --> 00:09:50,920
Speaker 1: Good morning Nathan. Everyone knew it was going to be

181
00:09:50,960 --> 00:09:52,920
Speaker 1: a tough Sunday for the Jets and Giants, and sure

182
00:09:53,000 --> 00:09:55,640
Speaker 1: enough both teams lost. Jets were in it in Buffalo.

183
00:09:55,760 --> 00:09:58,240
Speaker 1: Defense again played well, but for the second straight week,

184
00:09:58,280 --> 00:10:01,319
Speaker 1: the offense pouced only one touchdown the Bills one twenty

185
00:10:01,360 --> 00:10:04,679
Speaker 1: to twelve. Mike White in defeat seven of forty four.

186
00:10:04,800 --> 00:10:07,720
Speaker 1: He took a beating twice said to leave after the game.

187
00:10:07,800 --> 00:10:10,320
Speaker 1: White went to the hospital for for crostionary measures with

188
00:10:10,360 --> 00:10:13,800
Speaker 1: injured ribs. Jet bright Spot was rookie running Backsnovan ninety

189
00:10:13,840 --> 00:10:16,800
Speaker 1: games seventy one yard scored the Jets only touchdown as

190
00:10:16,880 --> 00:10:20,280
Speaker 1: for the Giants never ended at MetLife Philadelphia, with touchdowns

191
00:10:20,320 --> 00:10:23,240
Speaker 1: on the first three possessions and a Giant's illegal punt

192
00:10:23,320 --> 00:10:26,160
Speaker 1: didn't help things. Final was forty eight to twenty two,

193
00:10:26,280 --> 00:10:28,120
Speaker 1: most points the Eagles have scored in a road game

194
00:10:28,160 --> 00:10:31,120
Speaker 1: against the Giants since nineteen seventy one. Philly now in

195
00:10:31,280 --> 00:10:34,199
Speaker 1: NFL best twelve and one, six and oh on the road,

196
00:10:34,240 --> 00:10:37,679
Speaker 1: while Brian Dabele's Giants winless in their last four games.

197
00:10:39,800 --> 00:10:42,640
Speaker 1: You're winning, it's five. When you're losing this humbling. Um

198
00:10:43,040 --> 00:10:45,240
Speaker 1: lose like this, you own it it. Don't make any excuses.

199
00:10:45,240 --> 00:10:48,160
Speaker 1: They played well. Um, when we get to you know,

200
00:10:48,600 --> 00:10:50,920
Speaker 1: have an opportunity to get ready and and play a

201
00:10:50,960 --> 00:10:53,719
Speaker 1: big game on Sunday night. Yeah, that's a game in Washington.

202
00:10:53,840 --> 00:10:58,040
Speaker 1: Those two teams are tied, vying with Seattle for two

203
00:10:58,120 --> 00:11:01,560
Speaker 1: wild card spots, getting some help yesterday when Seattle lost

204
00:11:01,640 --> 00:11:05,200
Speaker 1: at home to Carolina. Next day, Hot their fourth win

205
00:11:05,240 --> 00:11:07,320
Speaker 1: in a row. They've played great defense and all four

206
00:11:07,400 --> 00:11:09,520
Speaker 1: at the Garden they beat. Sacramento is a good team

207
00:11:09,600 --> 00:11:12,400
Speaker 1: this year. One nine nine R J Barrett, Julius Randall

208
00:11:12,440 --> 00:11:15,120
Speaker 1: both with twenty seven points, all of those for Randall

209
00:11:15,200 --> 00:11:17,400
Speaker 1: coming the first half. He got ejected in the second half,

210
00:11:17,440 --> 00:11:20,000
Speaker 1: picking up a couple of technicals. Low scoring Battle of

211
00:11:20,040 --> 00:11:23,360
Speaker 1: New Jersey seating All forty five Rutgers forty three. No

212
00:11:23,440 --> 00:11:25,600
Speaker 1: one either team scored more than ten points. Both teams

213
00:11:25,600 --> 00:11:28,080
Speaker 1: are six and four. Paul Silas has passed away at

214
00:11:28,080 --> 00:11:30,679
Speaker 1: the age of seventy nine. Played sixteen NBA seasons, won

215
00:11:30,920 --> 00:11:33,520
Speaker 1: two championships in Boston. Was later a long time NBA

216
00:11:33,640 --> 00:11:37,040
Speaker 1: coach John stash Were Bloomberg Sports Nathan all Right, John,

217
00:11:37,080 --> 00:11:39,320
Speaker 1: thank you. Bloomberg Sports is brought to you. Buy OUTI

218
00:11:39,400 --> 00:11:41,480
Speaker 1: don't let someone else drive off in the Outye model

219
00:11:41,559 --> 00:11:44,560
Speaker 1: you've always wanted. Visit your local Tri state autie dealer

220
00:11:44,880 --> 00:11:46,960
Speaker 1: to get behind the wheel of yours today, or visit

221
00:11:47,000 --> 00:11:50,920
Speaker 1: outie Offers dot com for more information, s andp futures

222
00:11:51,000 --> 00:11:53,520
Speaker 1: right now up seven points down, futures up forty eight

223
00:11:53,600 --> 00:11:56,160
Speaker 1: and nastac futures are hired by twenty six points. The

224
00:11:56,240 --> 00:11:59,040
Speaker 1: tenure treasury up eleven thirty seconds yield three point five

225
00:11:59,120 --> 00:12:03,439
Speaker 1: three percent. It's five twelve on Wall Street. This is

226
00:12:03,600 --> 00:12:07,160
Speaker 1: Bloomberg Daybreak. At the start of a very busy week

227
00:12:07,240 --> 00:12:11,200
Speaker 1: for investors and for central banks. We are joined live

228
00:12:11,320 --> 00:12:14,440
Speaker 1: this morning by Lori Calvacina, the head of US equity

229
00:12:14,480 --> 00:12:18,520
Speaker 1: strategy at RBC Capital Markets. Lori, it's great to speak

230
00:12:18,559 --> 00:12:21,880
Speaker 1: with you this morning ahead of a very busy week

231
00:12:22,040 --> 00:12:24,599
Speaker 1: for central banks. You've got the FED on Wednesday and

232
00:12:24,600 --> 00:12:28,160
Speaker 1: then a bunch of other decisions on Thursday. What kind

233
00:12:28,240 --> 00:12:31,920
Speaker 1: of market reaction are you expecting from what we could

234
00:12:32,000 --> 00:12:35,000
Speaker 1: see from the central bankers this week? All right, well,

235
00:12:35,040 --> 00:12:37,199
Speaker 1: thanks for having me as always naked. Um. Look, I

236
00:12:37,280 --> 00:12:38,760
Speaker 1: think you know, the sort of the decision by the

237
00:12:38,800 --> 00:12:41,000
Speaker 1: FED is pretty well understood at this point, but I

238
00:12:41,120 --> 00:12:44,240
Speaker 1: think there's always equity investors are a tune to what

239
00:12:44,400 --> 00:12:47,640
Speaker 1: the commentary is and sort of the color on where

240
00:12:47,720 --> 00:12:50,599
Speaker 1: things are going forward. And as I talked to investors,

241
00:12:51,080 --> 00:12:53,439
Speaker 1: you know, I really do sense that they would like

242
00:12:53,520 --> 00:12:55,319
Speaker 1: to be talking about something other than the FED in

243
00:12:56,120 --> 00:12:58,600
Speaker 1: three so they would like to know I really kind

244
00:12:58,640 --> 00:13:00,720
Speaker 1: of you know that we're we're still silt set on set,

245
00:13:01,040 --> 00:13:04,480
Speaker 1: closer to the end than the beginning of this hiking cycle. Um.

246
00:13:04,559 --> 00:13:07,200
Speaker 1: I think if you get anything less, any advocation otherwise,

247
00:13:07,280 --> 00:13:08,960
Speaker 1: I think that we are going to see rocky markets,

248
00:13:09,000 --> 00:13:11,040
Speaker 1: and I do worry that, you know, we we do

249
00:13:11,160 --> 00:13:13,959
Speaker 1: see a federal reserve that doesn't like having seen equity

250
00:13:14,000 --> 00:13:16,040
Speaker 1: markets recovered as much as they have, and so there's

251
00:13:16,080 --> 00:13:17,880
Speaker 1: always the risk in my mind that the FED could

252
00:13:17,880 --> 00:13:19,800
Speaker 1: try to talk things down a bit. Well, a lot

253
00:13:19,840 --> 00:13:21,400
Speaker 1: of the talk we've been hearing from the FED up

254
00:13:21,440 --> 00:13:23,040
Speaker 1: two now is that rates are going to have to

255
00:13:23,120 --> 00:13:26,040
Speaker 1: stay higher for longer. Do you think the market has

256
00:13:26,120 --> 00:13:30,040
Speaker 1: gotten that message. I think the market has gotten that message,

257
00:13:30,080 --> 00:13:32,320
Speaker 1: but it is still a debate of exactly how high

258
00:13:32,400 --> 00:13:35,240
Speaker 1: and exactly how long. Um So I think, you know,

259
00:13:35,320 --> 00:13:38,240
Speaker 1: there is still some uncertainty in investors mind at exactly

260
00:13:38,320 --> 00:13:39,800
Speaker 1: what the right level is. And I'll just give you

261
00:13:39,840 --> 00:13:41,840
Speaker 1: a good, you know, good example, and this is more

262
00:13:41,880 --> 00:13:43,559
Speaker 1: on inflation than rates. But I was not talking to

263
00:13:43,640 --> 00:13:46,439
Speaker 1: investors in Europe last week, and I found generally that

264
00:13:46,520 --> 00:13:48,719
Speaker 1: most people are thinking of an inflation rate that's stay

265
00:13:48,840 --> 00:13:51,760
Speaker 1: sticky in the US and around four percent, which seems

266
00:13:51,800 --> 00:13:53,640
Speaker 1: a bit higher than what I've heard from talking to

267
00:13:53,800 --> 00:13:55,960
Speaker 1: US based investors. So I do think there is still

268
00:13:56,040 --> 00:13:58,199
Speaker 1: some room for debate and room for the market to

269
00:13:58,280 --> 00:14:00,439
Speaker 1: really try to figure out some of those issues in

270
00:14:00,559 --> 00:14:03,360
Speaker 1: terms of specific levels going forward. So that is interesting

271
00:14:03,440 --> 00:14:06,640
Speaker 1: because we did get the commentary just last night broadcast

272
00:14:06,720 --> 00:14:10,000
Speaker 1: on sixty minutes from Treasury Secretary Janet Yelling with her

273
00:14:10,120 --> 00:14:14,400
Speaker 1: expectation that inflation could drop pretty significantly by the end

274
00:14:14,440 --> 00:14:17,319
Speaker 1: of next year. What's it gonna take for that to

275
00:14:17,720 --> 00:14:21,520
Speaker 1: filter into this market? You know, I think that that

276
00:14:21,720 --> 00:14:24,280
Speaker 1: is something that equity markets would very much like to see.

277
00:14:24,400 --> 00:14:26,480
Speaker 1: And I think that, you know, I I sort of

278
00:14:26,520 --> 00:14:28,400
Speaker 1: told the investors I spoke with last week. I've talked

279
00:14:28,440 --> 00:14:30,320
Speaker 1: to plenty of investors in the US have been doing

280
00:14:30,360 --> 00:14:32,720
Speaker 1: the work on different inputs of inflation, different things that

281
00:14:32,760 --> 00:14:36,320
Speaker 1: are associated with inflation, different leading indicators of inflation, trying

282
00:14:36,360 --> 00:14:38,360
Speaker 1: to make the taste that things have been peaking and

283
00:14:38,480 --> 00:14:41,120
Speaker 1: that things are set to moderate. Um. So again, I

284
00:14:41,200 --> 00:14:43,040
Speaker 1: think it's it's starting to get there. But I think

285
00:14:43,080 --> 00:14:45,160
Speaker 1: it really is just a question of getting into the

286
00:14:45,240 --> 00:14:48,280
Speaker 1: new year and really seeing that said rhetorics start to

287
00:14:48,360 --> 00:14:50,440
Speaker 1: shift in a more significant way. Of course, we're going

288
00:14:50,480 --> 00:14:53,040
Speaker 1: to get one last read on inflation tomorrow and the

289
00:14:53,120 --> 00:14:56,400
Speaker 1: consumer price index before the FED decision. You're expecting any

290
00:14:56,680 --> 00:15:00,280
Speaker 1: market volatility off the back of the CPI print. I

291
00:15:00,360 --> 00:15:04,320
Speaker 1: think unfortunately. UM, there's always some market volatility, either heading

292
00:15:04,440 --> 00:15:06,840
Speaker 1: in or coming after. And I will tell you, Nathan,

293
00:15:06,880 --> 00:15:08,200
Speaker 1: I think that we're just at a time in the

294
00:15:08,320 --> 00:15:11,320
Speaker 1: year when nerves are really thin, people are a little

295
00:15:11,360 --> 00:15:14,200
Speaker 1: bit on edge, and there's tremendous amount concerned about the

296
00:15:14,240 --> 00:15:17,200
Speaker 1: outlook for three. So in general, when I'm looking at

297
00:15:17,280 --> 00:15:19,440
Speaker 1: kind of these bigger, you know, sort of news events,

298
00:15:19,480 --> 00:15:21,520
Speaker 1: I'm looking at them, you know, it's more of potential

299
00:15:21,600 --> 00:15:24,880
Speaker 1: sources of reasons for investors to take profits and things

300
00:15:24,920 --> 00:15:28,640
Speaker 1: to sell off. In terms of twenty three, you mentioned

301
00:15:28,680 --> 00:15:31,640
Speaker 1: earlier that markets would like to be speaking about anything

302
00:15:31,800 --> 00:15:34,800
Speaker 1: other than the FED in three. What are you looking

303
00:15:34,880 --> 00:15:38,640
Speaker 1: at in terms of other catalysts that they could move

304
00:15:38,720 --> 00:15:43,200
Speaker 1: markets and affect your outlook into the next year. Well,

305
00:15:43,320 --> 00:15:45,120
Speaker 1: you know what was really interesting May than last week

306
00:15:45,160 --> 00:15:47,400
Speaker 1: I heard a lot about recent dollar weakness, and again

307
00:15:47,520 --> 00:15:50,360
Speaker 1: I was talking about for the European based investors UM,

308
00:15:50,600 --> 00:15:52,720
Speaker 1: and then I was also hearing you know, a fair

309
00:15:52,760 --> 00:15:56,000
Speaker 1: amount about China reopening that story UM, and also just

310
00:15:56,160 --> 00:15:58,640
Speaker 1: the idea that Europe has been out performing the US.

311
00:15:59,200 --> 00:16:01,360
Speaker 1: So I think those are potentially you know, sort of

312
00:16:01,440 --> 00:16:04,600
Speaker 1: new themes that investors could continue to gravitate towards next year.

313
00:16:04,640 --> 00:16:05,880
Speaker 1: But I have to tell you, if you think about

314
00:16:05,920 --> 00:16:09,760
Speaker 1: the US versus Europe, the US still looks extremely expensive. UM.

315
00:16:09,840 --> 00:16:12,320
Speaker 1: So we're basically looking for a flat market next year.

316
00:16:12,400 --> 00:16:16,200
Speaker 1: And I view that issue of expensive US valuations versus

317
00:16:16,240 --> 00:16:19,640
Speaker 1: Europe is just another overhang at headwinds that you excualies

318
00:16:19,680 --> 00:16:22,120
Speaker 1: have to contend with. What are you looking for in

319
00:16:22,320 --> 00:16:25,080
Speaker 1: terms of earnings for next year? We got a couple

320
00:16:25,160 --> 00:16:29,800
Speaker 1: of notes just overnight, UH with the idea that earnings

321
00:16:29,880 --> 00:16:32,880
Speaker 1: revisions may need to come down even further next year.

322
00:16:32,960 --> 00:16:37,080
Speaker 1: Could that be a potential headwind for stocks? I think so.

323
00:16:37,280 --> 00:16:39,360
Speaker 1: I think it is a complicated matter. We are at

324
00:16:39,440 --> 00:16:42,400
Speaker 1: one which is well below the bottom up insensus, which

325
00:16:42,400 --> 00:16:44,520
Speaker 1: has still been tracking up round two thirty to thirty

326
00:16:44,560 --> 00:16:47,400
Speaker 1: one UM, and we have seen some strategists are down

327
00:16:47,440 --> 00:16:50,880
Speaker 1: in our neighborhood. Others are looking for more flattish type earnings. UM.

328
00:16:51,000 --> 00:16:53,640
Speaker 1: I do think that that is a headwind simply because

329
00:16:54,240 --> 00:16:57,760
Speaker 1: it creates volatility and individual stocks investors need certainty on

330
00:16:57,880 --> 00:17:01,360
Speaker 1: multiples before they're comfortable coming into By that being said,

331
00:17:01,400 --> 00:17:04,400
Speaker 1: we do typically see that most cuts and percentage terms

332
00:17:04,440 --> 00:17:07,600
Speaker 1: are completed by April in most years of earning downgrades.

333
00:17:07,600 --> 00:17:09,520
Speaker 1: And additionally, if you look at the rate of revisions

334
00:17:09,560 --> 00:17:11,920
Speaker 1: to the upside, we typically see that the SMP five

335
00:17:12,000 --> 00:17:16,160
Speaker 1: hundred bottoms three to six months before estimates on individual

336
00:17:16,240 --> 00:17:19,520
Speaker 1: companies stopped going down. So I think it's something that

337
00:17:19,600 --> 00:17:22,040
Speaker 1: adds to volatility that need to reduce forecast. But I

338
00:17:22,160 --> 00:17:24,399
Speaker 1: don't think it necessarily tells us we have to make

339
00:17:24,440 --> 00:17:25,960
Speaker 1: a new low in the first half of the year.

340
00:17:26,400 --> 00:17:29,400
Speaker 1: I want to get more on what's affecting your outlook

341
00:17:29,520 --> 00:17:31,680
Speaker 1: for the next year. Of course, it's something that a

342
00:17:31,760 --> 00:17:34,960
Speaker 1: lot of analysts are talking about the expectation for what

343
00:17:35,160 --> 00:17:38,720
Speaker 1: investments could do in three So we're going to continue

344
00:17:38,800 --> 00:17:42,560
Speaker 1: this conversation with Lori Calvacina, the Ahead of US Equity

345
00:17:42,600 --> 00:17:46,119
Speaker 1: strategy at RBC Capital Markets, in just the next few minutes.

346
00:17:46,160 --> 00:17:48,600
Speaker 1: So stay with us here on Bloomberg day Break. Right now,

347
00:17:48,800 --> 00:17:51,879
Speaker 1: SMP futures are higher by seven points, down futures of

348
00:17:52,000 --> 00:17:55,600
Speaker 1: forty Nasdaq futures on the rise by twenty six points

349
00:17:55,680 --> 00:18:02,320
Speaker 1: this morning, and you're listening to Bloomberg day Break, markets

350
00:18:02,440 --> 00:18:05,480
Speaker 1: headlines and breaking news twenty four hours a day at

351
00:18:05,560 --> 00:18:09,520
Speaker 1: Bloomberg dot Com. The Bloomberg business outland at Bloomberg quick tape.

352
00:18:09,720 --> 00:18:18,719
Speaker 1: This is a Bloomberg business lash and I'm Karen Moscow

353
00:18:18,800 --> 00:18:21,440
Speaker 1: and US DOT index futures are higher this morning. The

354
00:18:21,520 --> 00:18:23,600
Speaker 1: dollar are racing in advance at the start of a

355
00:18:23,720 --> 00:18:27,320
Speaker 1: pivotal week for monetary policy decisions from the Federal Reserve,

356
00:18:27,400 --> 00:18:30,320
Speaker 1: European Central Bank and a host of their peers. We

357
00:18:30,440 --> 00:18:33,080
Speaker 1: checked the markets all day long on Bloomberg radios and

358
00:18:33,119 --> 00:18:35,920
Speaker 1: P futures up about seven points of almost two tens

359
00:18:35,960 --> 00:18:38,760
Speaker 1: of upper Cental futures up forty two points or a

360
00:18:38,800 --> 00:18:41,320
Speaker 1: tenth of upper cent, and nasday futures of twenty three

361
00:18:41,359 --> 00:18:43,920
Speaker 1: points or two tenths of upper cent. The decks in

362
00:18:44,000 --> 00:18:46,520
Speaker 1: Germany's down the most, two tenths of uppercent. Ten year

363
00:18:46,560 --> 00:18:48,840
Speaker 1: treasury up twelve thirty seconds. You have three point five

364
00:18:48,880 --> 00:18:51,080
Speaker 1: three percent, and they yield on the two year four

365
00:18:51,160 --> 00:18:54,040
Speaker 1: point three two percent. Nine next, Screwed oil is down

366
00:18:54,080 --> 00:18:56,320
Speaker 1: six tenths per cent or forty cents, and seventy dollars

367
00:18:56,359 --> 00:18:58,560
Speaker 1: sixty two cents of arrol coll Max School there is

368
00:18:58,600 --> 00:19:00,639
Speaker 1: down four tenths per cent or seven oll There's fifty

369
00:19:00,680 --> 00:19:03,760
Speaker 1: cents and eighteen o three thirty announced the euro one

370
00:19:03,840 --> 00:19:06,359
Speaker 1: point oh five five nine against the dollar. British found

371
00:19:06,400 --> 00:19:08,840
Speaker 1: one point two two seven too. He had one thirty

372
00:19:08,920 --> 00:19:11,960
Speaker 1: six point seven zero and bitcoins down a tensive a

373
00:19:12,080 --> 00:19:15,359
Speaker 1: percent at about sixteen thousand, nine hundred dollars. And that's

374
00:19:15,400 --> 00:19:18,240
Speaker 1: a Bloomberg business flash. Now here's Amy Morris with Moore

375
00:19:18,320 --> 00:19:20,560
Speaker 1: on what's going on around the world. Any good morning,

376
00:19:20,880 --> 00:19:22,840
Speaker 1: all right, thank you, Karen. Good morning to you. Some

377
00:19:22,960 --> 00:19:25,160
Speaker 1: other news you'll need from around the world. O Libyan

378
00:19:25,200 --> 00:19:28,840
Speaker 1: man suspected in the ninety eight bombing a fan amp

379
00:19:28,960 --> 00:19:31,800
Speaker 1: like one oh three over Scotland is now in US custody.

380
00:19:32,119 --> 00:19:35,919
Speaker 1: A Department of Justice spokesperson says the alleged operative expected

381
00:19:35,960 --> 00:19:38,200
Speaker 1: to make an initial appearance in the U. S District

382
00:19:38,240 --> 00:19:41,080
Speaker 1: Court for the District of Columbia. The operator of the

383
00:19:41,200 --> 00:19:45,160
Speaker 1: Keystone Pipeline system says they've finally gotten that breach under

384
00:19:45,240 --> 00:19:48,480
Speaker 1: control for now after spilling more than five d eighty

385
00:19:48,520 --> 00:19:52,480
Speaker 1: eight thousand gallons of crude into Mill Creek in Kansas.

386
00:19:52,760 --> 00:19:55,639
Speaker 1: And sports, the NFL Bills beat the Jets, Ravens and

387
00:19:55,720 --> 00:19:58,280
Speaker 1: forty Niners win, and in hockey the Caps and Bruins

388
00:19:58,359 --> 00:20:00,719
Speaker 1: both win. Global news to win four hours a Day

389
00:20:00,760 --> 00:20:03,320
Speaker 1: on errand on Bloomberg Quick Take, powered by more than

390
00:20:03,359 --> 00:20:05,879
Speaker 1: twenty seven hundred journalists and analysts in more than one

391
00:20:05,960 --> 00:20:10,200
Speaker 1: hundred twenty countries. I'm anymore is this is Bloomberg Nathan okay, Amy,

392
00:20:10,280 --> 00:20:11,960
Speaker 1: thank you for coming up to five twenty four on

393
00:20:12,040 --> 00:20:15,399
Speaker 1: Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak, and

394
00:20:15,440 --> 00:20:18,480
Speaker 1: Lorie Calvacina is back with us as promised head of

395
00:20:18,560 --> 00:20:22,560
Speaker 1: US Equity Strategy at RBC Capital Markets. Laurie, I want

396
00:20:22,600 --> 00:20:26,399
Speaker 1: to get more on your view into three. We did

397
00:20:26,480 --> 00:20:29,520
Speaker 1: a survey here Bloomberg News just a few days ago

398
00:20:29,840 --> 00:20:34,159
Speaker 1: on the outlook, and seventy one percent of respondents you

399
00:20:34,200 --> 00:20:38,360
Speaker 1: got back to us said they see stocks rising in three,

400
00:20:38,520 --> 00:20:41,879
Speaker 1: the average around ten percent. They're thinking most of that

401
00:20:42,000 --> 00:20:45,080
Speaker 1: gain is going to happen in the second half. Is

402
00:20:45,200 --> 00:20:48,960
Speaker 1: that of you? You share? Hi? So, so listen. I

403
00:20:49,000 --> 00:20:52,000
Speaker 1: think it's a fantastic question. I think your survey respondents

404
00:20:52,000 --> 00:20:54,040
Speaker 1: are probably a little bit more optimistic from the south

405
00:20:54,080 --> 00:20:56,879
Speaker 1: side strategy community. I've been one of the more constructive

406
00:20:56,960 --> 00:21:00,359
Speaker 1: ones on the next one. Outlooks with her aready one

407
00:21:00,400 --> 00:21:02,399
Speaker 1: hundred target, which at the time we priced it was

408
00:21:02,480 --> 00:21:04,560
Speaker 1: about a three percent game, so that was against late

409
00:21:04,640 --> 00:21:07,960
Speaker 1: November levels. But I will say the sort of view

410
00:21:08,160 --> 00:21:09,920
Speaker 1: that markets are going to have a rocky start to

411
00:21:10,000 --> 00:21:11,680
Speaker 1: the year and do better in the second half of

412
00:21:11,720 --> 00:21:13,720
Speaker 1: the year, that is a view I share, um But

413
00:21:13,840 --> 00:21:16,000
Speaker 1: one risk to that view is, frankly, that that is

414
00:21:16,040 --> 00:21:19,120
Speaker 1: also a pretty consensus view, not just among your survey respondents,

415
00:21:19,160 --> 00:21:22,200
Speaker 1: but among the south side strategy community right now. Um. So,

416
00:21:22,240 --> 00:21:23,840
Speaker 1: I think we have to see how much of this

417
00:21:23,960 --> 00:21:26,639
Speaker 1: gets priced in in December. That's always something that happens

418
00:21:26,920 --> 00:21:28,600
Speaker 1: when we roll over into in the year, and of

419
00:21:28,680 --> 00:21:30,320
Speaker 1: course we have to see what the new stories are

420
00:21:30,440 --> 00:21:31,959
Speaker 1: for the next year. But I do think we've got,

421
00:21:32,359 --> 00:21:34,920
Speaker 1: you know, some issues to work through. Ultimately, I do

422
00:21:35,000 --> 00:21:36,960
Speaker 1: think markets will be on stronger footing at the end

423
00:21:37,000 --> 00:21:38,119
Speaker 1: of the year, but we've got a little bit of

424
00:21:38,119 --> 00:21:39,920
Speaker 1: work to do to get there. I guess some of

425
00:21:40,000 --> 00:21:42,000
Speaker 1: the issues I can think of to work through would

426
00:21:42,040 --> 00:21:44,800
Speaker 1: include the war in Ukraine and how the reopening in

427
00:21:45,040 --> 00:21:47,120
Speaker 1: China is going to work out. What are some other

428
00:21:47,520 --> 00:21:51,160
Speaker 1: potential head wins. Do you see those as major headwinds

429
00:21:51,240 --> 00:21:54,280
Speaker 1: for this market? You know, I do see a Russia

430
00:21:54,359 --> 00:21:56,760
Speaker 1: Ukraine is a major overhanging you know, I think I'm

431
00:21:56,800 --> 00:21:59,480
Speaker 1: still digesting what's going on in China in terms of

432
00:21:59,520 --> 00:22:03,440
Speaker 1: how that that impacts US equity markets. But the reality

433
00:22:03,560 --> 00:22:05,760
Speaker 1: is that if you put those political issues aside, we've

434
00:22:05,800 --> 00:22:07,680
Speaker 1: got plenty of other issues. Um. I think you know,

435
00:22:07,720 --> 00:22:10,159
Speaker 1: as I mentioned in the last segment, the US doesn't

436
00:22:10,240 --> 00:22:13,880
Speaker 1: look cheap right now, um, not just versus European equities,

437
00:22:13,920 --> 00:22:15,879
Speaker 1: but also we don't really look that appealing in the

438
00:22:15,960 --> 00:22:18,560
Speaker 1: US equity market relative to bonds. And I will say

439
00:22:18,600 --> 00:22:20,840
Speaker 1: that is something you know that just about any sort

440
00:22:20,880 --> 00:22:23,800
Speaker 1: of crocess that indicator that I can run, I simply

441
00:22:23,840 --> 00:22:25,920
Speaker 1: don't see a compelling case through US equities at this

442
00:22:26,040 --> 00:22:28,040
Speaker 1: moment in time. And we've seen that in the past

443
00:22:28,160 --> 00:22:32,119
Speaker 1: that has impacted money clothed into the respect about st classes. Um.

444
00:22:32,160 --> 00:22:33,879
Speaker 1: So I think that's one big issue we've got. I

445
00:22:33,960 --> 00:22:37,080
Speaker 1: think another issue, you know, sort of related to earnings.

446
00:22:37,119 --> 00:22:39,160
Speaker 1: But I think just the onsete of a more challenging

447
00:22:39,200 --> 00:22:42,639
Speaker 1: economy is something that equity investors are going to have

448
00:22:42,800 --> 00:22:45,639
Speaker 1: difficulty dealing with. Because we have been talking about the

449
00:22:45,720 --> 00:22:49,119
Speaker 1: idea of consumer and corporate resilience for so long. I

450
00:22:49,200 --> 00:22:51,720
Speaker 1: think that's going to engender discussions about whether or not.

451
00:22:51,840 --> 00:22:54,399
Speaker 1: We're on the precess of a deeper, longer, more lasting,

452
00:22:55,240 --> 00:22:59,159
Speaker 1: durable type recession. And I'll just give you one sat Nathan. Historically,

453
00:22:59,280 --> 00:23:01,920
Speaker 1: when you're in at you know, sort of GDP environments

454
00:23:02,000 --> 00:23:05,200
Speaker 1: or zero to two percent in real terms on average

455
00:23:05,359 --> 00:23:08,040
Speaker 1: and on a medium basis, the pop market is flat.

456
00:23:08,160 --> 00:23:12,000
Speaker 1: So markets don't like that sort of very sluggish type

457
00:23:12,040 --> 00:23:14,439
Speaker 1: growth environment that's anticipated right now if you look at

458
00:23:14,480 --> 00:23:17,360
Speaker 1: consensus forecasts. No, it is going to be very interesting

459
00:23:17,480 --> 00:23:20,280
Speaker 1: to see how the federal reserve outlook for next year

460
00:23:20,920 --> 00:23:25,080
Speaker 1: plays into what sell side and buy side strategists are thinking.

461
00:23:25,119 --> 00:23:29,159
Speaker 1: When it comes to Lori Calvacina as always great to

462
00:23:29,200 --> 00:23:32,119
Speaker 1: get your thoughts, Thanks again for being with us. Lori Calvacina,

463
00:23:32,240 --> 00:23:37,320
Speaker 1: head of US Equity Strategy at RBC Capital Markets. Right now,

464
00:23:37,800 --> 00:23:41,040
Speaker 1: SMP futures are up six points, down futures up forty five,

465
00:23:41,200 --> 00:23:44,320
Speaker 1: and NASTAC futures are higher by twenty one points. The

466
00:23:44,440 --> 00:23:48,760
Speaker 1: tenure Treasury is up thirteen thirty seconds the three point

467
00:23:48,840 --> 00:23:51,520
Speaker 1: five three percent Ahead of this week's FED decision and

468
00:23:51,920 --> 00:23:55,040
Speaker 1: the inflation data. We'll get this morning's top stories and

469
00:23:55,119 --> 00:23:58,960
Speaker 1: local headlines straight ahead. First, a look at today's Bloomberg

470
00:23:59,040 --> 00:24:01,880
Speaker 1: Weather Forecast. Watch out for some slippery spots this morning,

471
00:24:01,920 --> 00:24:03,840
Speaker 1: well north and west of the city. It looks like

472
00:24:04,000 --> 00:24:06,320
Speaker 1: drier weather's headed our way and cloudiness will be giving

473
00:24:06,359 --> 00:24:08,760
Speaker 1: way to sunshine. We'll climb up to about forty today,

474
00:24:09,160 --> 00:24:12,320
Speaker 1: clear skies Tonight the thirty downtown will be in the teens.

475
00:24:12,320 --> 00:24:15,400
Speaker 1: In the suburbs, sunshine Tomorrow, We're close to forty, clear

476
00:24:15,440 --> 00:24:18,320
Speaker 1: skies the thirty tomorrow night. High pressure will keep it

477
00:24:18,359 --> 00:24:21,760
Speaker 1: sunny through Wednesday, with heights around forty. I'm Rob Caroline

478
00:24:21,800 --> 00:24:24,320
Speaker 1: with your three day forecast on Bloomberg eleven three oh

479
00:24:27,440 --> 00:24:31,960
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York,

480
00:24:32,119 --> 00:24:36,719
Speaker 1: Bloomberg Elving Free to Washington, d C. Bloomberg nine to Boston,

481
00:24:36,880 --> 00:24:40,240
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine

482
00:24:40,359 --> 00:24:43,160
Speaker 1: six to the country, Sirius XM to A one nine

483
00:24:43,200 --> 00:24:46,080
Speaker 1: te and around the globe, the Bloomberg Business apt and

484
00:24:46,200 --> 00:24:56,000
Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's live

485
00:24:56,080 --> 00:24:58,320
Speaker 1: twenty eight on Wall Street. Good morning on Nathan Hagar

486
00:24:58,600 --> 00:25:00,840
Speaker 1: and I'm Karen Moscow and We're are just about four

487
00:25:00,920 --> 00:25:03,520
Speaker 1: hours away from the open of US trading. Let's get

488
00:25:03,560 --> 00:25:04,760
Speaker 1: you up to date on the news you need to

489
00:25:04,800 --> 00:25:07,600
Speaker 1: know at this hour. US futures are higher this morning

490
00:25:07,640 --> 00:25:10,800
Speaker 1: as we enter a big week for central banks. The Fed,

491
00:25:10,960 --> 00:25:13,159
Speaker 1: ECB and Bank of England are is set to make

492
00:25:13,240 --> 00:25:16,240
Speaker 1: policy decisions Wednesday and Thursday, and when it comes to

493
00:25:16,280 --> 00:25:18,639
Speaker 1: the Fed, the Central Bank could be poised to shift

494
00:25:18,760 --> 00:25:21,359
Speaker 1: gears at least a little. And Bloomberg's Minny Deal Judais

495
00:25:21,400 --> 00:25:23,840
Speaker 1: has more. The Fed has been tightening in a big way,

496
00:25:23,920 --> 00:25:27,159
Speaker 1: winding up the last four meetings with jumbo seventy basis

497
00:25:27,240 --> 00:25:31,200
Speaker 1: point rate hikes to fight inflation. Higher rates risk of recession, though,

498
00:25:31,480 --> 00:25:34,560
Speaker 1: and economists see the Fed opting for smaller half point hikes,

499
00:25:34,840 --> 00:25:37,560
Speaker 1: mindful that efforts to steer the US economy could drive

500
00:25:37,600 --> 00:25:39,800
Speaker 1: it off the road. There's room for the Fed to

501
00:25:39,880 --> 00:25:43,440
Speaker 1: keep tightening. Data Friday showed November's producer price and BIXS

502
00:25:43,480 --> 00:25:47,359
Speaker 1: top forecast. Moreover, Wall Street anticipates this week's date on

503
00:25:47,560 --> 00:25:50,560
Speaker 1: US consumer prices will show no significant let up. An

504
00:25:50,560 --> 00:25:53,040
Speaker 1: eat del Judais, Bloomberg day break, all right, Vinny, thank you,

505
00:25:53,119 --> 00:25:55,200
Speaker 1: And the Treasury is weighing in on the inflation fight.

506
00:25:55,320 --> 00:25:58,439
Speaker 1: Secretary Janet Yellen is cautiously optimistic that the Fed can

507
00:25:58,520 --> 00:26:01,199
Speaker 1: win its battle against HIE. Prior says, I believed by

508
00:26:01,280 --> 00:26:03,480
Speaker 1: the end of next year, you will see which lower

509
00:26:03,560 --> 00:26:09,679
Speaker 1: inflation if there's not an anticipated shock. Treasury Secretary Janet

510
00:26:09,720 --> 00:26:13,320
Speaker 1: Yell until sixty minutes on CBS that she's seen positive signs,

511
00:26:13,400 --> 00:26:16,960
Speaker 1: including lower shipping costs and reduced lag times for deliveries.

512
00:26:17,280 --> 00:26:20,320
Speaker 1: Our listeners in Washington can hear sixty minutes Sunday nights

513
00:26:20,359 --> 00:26:24,000
Speaker 1: at ten on Bloomberg Well and Deal News. This morning,

514
00:26:24,119 --> 00:26:26,439
Speaker 1: Nathan am Jen is on the verge of making its

515
00:26:26,560 --> 00:26:29,200
Speaker 1: biggest deal ever. Let's get the latest live at the

516
00:26:29,200 --> 00:26:32,560
Speaker 1: Bloomberg Steve rapp Aboard, Good morning, Steve, Good morning, Karen,

517
00:26:32,640 --> 00:26:35,640
Speaker 1: and Nathan m Jen has reportedly agreed to buy Horizon

518
00:26:35,720 --> 00:26:39,200
Speaker 1: Therapeutics at evaluation of twenty six billion dollars. Assuming the

519
00:26:39,280 --> 00:26:42,640
Speaker 1: deal goes through, sources tell Bloomberg Nurse negotiations could still

520
00:26:42,720 --> 00:26:46,000
Speaker 1: fall apart. The biotech giant offered about one hundred sixteen

521
00:26:46,040 --> 00:26:48,960
Speaker 1: dollars for each year of Horizon, roughly twenty bucks higher

522
00:26:48,960 --> 00:26:52,040
Speaker 1: than the stocks closing price on Friday. Horizon chairs continue

523
00:26:52,080 --> 00:26:54,399
Speaker 1: to climb this morning in pre market trading now up

524
00:26:54,480 --> 00:26:58,320
Speaker 1: thirteen percent. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak.

525
00:26:58,400 --> 00:27:00,159
Speaker 1: All right, Steve, thanks for that. And we also have

526
00:27:00,240 --> 00:27:03,840
Speaker 1: an acquisition this morning involving Microsoft, that companies agreed to

527
00:27:03,920 --> 00:27:07,240
Speaker 1: purchase a stake in the London Stock Exchange Group. The

528
00:27:07,320 --> 00:27:10,480
Speaker 1: deal gives Microsoft a four percent equity holding as part

529
00:27:10,520 --> 00:27:13,760
Speaker 1: of a new long term strategic partnership between the firms

530
00:27:14,240 --> 00:27:16,960
Speaker 1: and G and GEO Political news here Nathan, the US

531
00:27:17,040 --> 00:27:19,600
Speaker 1: will send a delegation to Shine on the coming days.

532
00:27:19,720 --> 00:27:22,399
Speaker 1: The move follows up on President Biden's meeting with Chinese

533
00:27:22,480 --> 00:27:25,760
Speaker 1: President Chi Jin Ping last month. At the G twenty

534
00:27:26,000 --> 00:27:27,960
Speaker 1: futures this morning are in the rise s and P

535
00:27:28,160 --> 00:27:30,960
Speaker 1: futures up seven points, up about two tenths of upper

536
00:27:31,000 --> 00:27:33,720
Speaker 1: sent DAL future is a forty seven or a tenth

537
00:27:33,800 --> 00:27:36,200
Speaker 1: of upper cent, and nasday future is of twenty five

538
00:27:36,320 --> 00:27:39,000
Speaker 1: or two tenths of upper cent. Ten. Your treasury up

539
00:27:39,000 --> 00:27:41,439
Speaker 1: twelve thirty seconds. You know, three point five three percent

540
00:27:41,760 --> 00:27:44,440
Speaker 1: they yield on the two year four point three two percent.

541
00:27:44,880 --> 00:27:47,200
Speaker 1: Nine x Screwed oil is falling down six tents of

542
00:27:47,280 --> 00:27:49,960
Speaker 1: upper cent or forty one cents at seventy sixty one

543
00:27:50,080 --> 00:27:52,480
Speaker 1: cents a barrel and comax s goold is down about

544
00:27:52,520 --> 00:27:56,080
Speaker 1: half percent. Straight to hand your latest local headlines plus

545
00:27:56,240 --> 00:28:04,200
Speaker 1: a check of sports, and this is Bloomberg. All right, Karen,

546
00:28:04,280 --> 00:28:06,560
Speaker 1: thank you. It is five thirty one on Wall Street,

547
00:28:06,640 --> 00:28:08,520
Speaker 1: and Amy Morris is here with a look at what's

548
00:28:08,520 --> 00:28:10,800
Speaker 1: going on in New York and around the world. Amy,

549
00:28:11,640 --> 00:28:15,000
Speaker 1: thank you. Nathan, President Biden and Treasury Secretary Janet Yellen.

550
00:28:15,040 --> 00:28:19,040
Speaker 1: Affirming US support for Ukraine, Yellin tells CBS is sixty minutes.

551
00:28:19,080 --> 00:28:22,240
Speaker 1: American support will continue, quote as long as it takes

552
00:28:22,960 --> 00:28:26,000
Speaker 1: thing we can to bring this war to a conclusion.

553
00:28:26,680 --> 00:28:32,840
Speaker 1: Of course, we're providing considerable help um to Ukraine, both

554
00:28:32,960 --> 00:28:37,159
Speaker 1: military and economic. USS promised thirty eight billion dollars in

555
00:28:37,200 --> 00:28:40,280
Speaker 1: military aid and delivered thirteen billion dollars in direct aid

556
00:28:40,320 --> 00:28:43,280
Speaker 1: to Ukraine. Already, New York officials a broken ground on

557
00:28:43,360 --> 00:28:46,000
Speaker 1: a new Metro North line. Some are making way for

558
00:28:46,160 --> 00:28:49,880
Speaker 1: other projects. After announcing Penn Station Access will provide direct

559
00:28:49,920 --> 00:28:53,120
Speaker 1: train service from the Bronx to Manhattan's West Side, Senator

560
00:28:53,200 --> 00:28:56,000
Speaker 1: Chuck Schumer says he's still fighting to fund other major

561
00:28:56,120 --> 00:28:59,880
Speaker 1: infrastructure initiatives. New York is building the next generation of

562
00:29:00,040 --> 00:29:02,960
Speaker 1: our public transit system that is going to help keep

563
00:29:03,000 --> 00:29:05,400
Speaker 1: our city growing and includes the second phase of the

564
00:29:05,480 --> 00:29:08,280
Speaker 1: Second Avenue subway line to extend into Harlem and the

565
00:29:08,320 --> 00:29:12,160
Speaker 1: Gateway Project, which connects underground rail tunnels between New York

566
00:29:12,240 --> 00:29:16,800
Speaker 1: and New Jersey. New Haven's first adult used recreational marijuana

567
00:29:16,880 --> 00:29:21,120
Speaker 1: store is scheduled to open January. Affinity Health and Wellness

568
00:29:21,200 --> 00:29:24,920
Speaker 1: already operates a medicinal marijuana shop in Amity. The vast

569
00:29:25,160 --> 00:29:28,880
Speaker 1: majority of customers are expected to pre order marijuana products

570
00:29:29,120 --> 00:29:31,520
Speaker 1: then pick up the orders as they would at a pharmacy.

571
00:29:32,080 --> 00:29:35,640
Speaker 1: Members of the Marine Mammal Stranding Center yesterday buried the

572
00:29:35,760 --> 00:29:39,240
Speaker 1: carcass of a thirty foot humpback whale that washed ashore

573
00:29:39,320 --> 00:29:41,640
Speaker 1: on a New Jersey beach over the weekend. Because of

574
00:29:41,720 --> 00:29:44,160
Speaker 1: the state of decomposition, they were not able to determine

575
00:29:44,200 --> 00:29:46,120
Speaker 1: the cause of death. It was believed to have been

576
00:29:46,680 --> 00:29:50,000
Speaker 1: younger than ten years old. Global News twenty four hours

577
00:29:50,040 --> 00:29:52,520
Speaker 1: a day on air and on Bloomberg quick Take, powered

578
00:29:52,560 --> 00:29:55,520
Speaker 1: by more than twenty seven hundred journalists and analysts in

579
00:29:55,600 --> 00:29:58,640
Speaker 1: more than one hundred twenty countries. I'm Amy Morris, This

580
00:29:58,920 --> 00:30:06,800
Speaker 1: is Bloomberg. Nathan thanks Amy five thirty three on Wall

581
00:30:06,840 --> 00:30:08,840
Speaker 1: Street time for the Bloomberg Sports up they brought to

582
00:30:08,880 --> 00:30:11,840
Speaker 1: you by Trice State outa John Steen show. All right, Nathan,

583
00:30:11,880 --> 00:30:15,720
Speaker 1: Jets and Giants pretty much same boat. Exceeded expectations much

584
00:30:15,760 --> 00:30:19,000
Speaker 1: of this season, but both now stuck on seven wins

585
00:30:19,080 --> 00:30:20,720
Speaker 1: and now very much in the battle for a wild

586
00:30:20,800 --> 00:30:22,880
Speaker 1: card playoff spot. The Jets and Buffalo trying to beat

587
00:30:22,920 --> 00:30:25,480
Speaker 1: the Bills for the second time. They won the stats,

588
00:30:25,560 --> 00:30:28,440
Speaker 1: more first downs, more possession time, They gained eighty seven

589
00:30:28,480 --> 00:30:31,400
Speaker 1: more yard but the Bills won twenty to twelve to

590
00:30:31,640 --> 00:30:35,440
Speaker 1: costly second half fumbles. For Robert Sala's team, defensive are

591
00:30:35,440 --> 00:30:38,440
Speaker 1: really nice job in both situations minimizing the damage, but

592
00:30:40,080 --> 00:30:44,320
Speaker 1: two turnovers are always gonna bey. When you lose turnover battle,

593
00:30:44,320 --> 00:30:46,160
Speaker 1: you're you're you're not giving yourself a chance to win

594
00:30:46,200 --> 00:30:48,320
Speaker 1: of for Polon, Jets have now lost three to last four,

595
00:30:48,360 --> 00:30:50,360
Speaker 1: all on the road. The next two games all right

596
00:30:50,360 --> 00:30:53,600
Speaker 1: against Detroit and Jacksonville, and those teams are much improved.

597
00:30:53,640 --> 00:30:56,280
Speaker 1: The Lions just beat the Vikings. Detroit's won five the

598
00:30:56,400 --> 00:30:59,280
Speaker 1: last six. The Jaguars just beat Tennessee by two touchdowns.

599
00:30:59,560 --> 00:31:02,080
Speaker 1: That John It's next Day next Sunday night in Washington.

600
00:31:02,160 --> 00:31:04,720
Speaker 1: That game, although a long way in determining whether they

601
00:31:04,760 --> 00:31:07,000
Speaker 1: make the flowoffs. The Giants winless in their last four

602
00:31:07,200 --> 00:31:10,880
Speaker 1: crushed at MetLife by Legally in Philadelphia forty eight to

603
00:31:11,040 --> 00:31:14,880
Speaker 1: twenty two. The Eagles scored six touchdowns kicked two field goals.

604
00:31:14,920 --> 00:31:17,880
Speaker 1: Big days for Jalen Hurds and Miles Sanders. The Eagles

605
00:31:17,920 --> 00:31:20,320
Speaker 1: are now twelve and one. The Cowboys are ten and three.

606
00:31:20,400 --> 00:31:23,479
Speaker 1: They nearly lost in what would have been a massive upset,

607
00:31:23,520 --> 00:31:26,560
Speaker 1: but Dallas scored late to beat Houston. Forty Niners stay

608
00:31:26,600 --> 00:31:29,440
Speaker 1: Hot blowout went over Tampa Bay. Tom Brady beaten by

609
00:31:29,760 --> 00:31:32,880
Speaker 1: Brock Purdy was making his first NFL start at the Garden.

610
00:31:33,240 --> 00:31:35,680
Speaker 1: Next Day Hot one or fourth Row one twelve ninety

611
00:31:35,760 --> 00:31:39,040
Speaker 1: nine over Sacramento. Rangers host The Devil's Tonight. John Stash

612
00:31:39,280 --> 00:31:41,960
Speaker 1: or Bloomberg Sports Nathan, Thank you, John and Bloomberg Sports

613
00:31:42,000 --> 00:31:43,880
Speaker 1: has brought to you by Autia. Don't let someone else

614
00:31:44,000 --> 00:31:46,600
Speaker 1: drive off in the outy model you've always wanted. Visit

615
00:31:46,640 --> 00:31:48,960
Speaker 1: your local Tri state autie dealer to get behind the

616
00:31:49,000 --> 00:31:51,760
Speaker 1: wheel of yours today, or visit outi Offers dot com

617
00:31:52,160 --> 00:31:55,480
Speaker 1: for more information. SMP futures right now up seven points down,

618
00:31:55,560 --> 00:31:58,120
Speaker 1: futures hired by fifty two and NASDAC futures on the

619
00:31:58,200 --> 00:32:03,080
Speaker 1: rise by twenty six points five on Wall Street time

620
00:32:03,120 --> 00:32:06,000
Speaker 1: for the Tri State Business report with Bloomberg's ed Corey

621
00:32:06,520 --> 00:32:09,480
Speaker 1: Barnberg is laid off about ten employees in New York,

622
00:32:09,800 --> 00:32:13,640
Speaker 1: the German investment banks grappling with the quiet deals market

623
00:32:13,720 --> 00:32:16,920
Speaker 1: these days. The staff work for Barrenberg's US unit, which

624
00:32:16,920 --> 00:32:20,200
Speaker 1: employs about eighty five people. In an emailed statement, as

625
00:32:20,240 --> 00:32:23,560
Speaker 1: spokesperson said most of them worked in support functions for

626
00:32:23,680 --> 00:32:26,960
Speaker 1: the four hundred thirty year old firm. G City, in

627
00:32:27,120 --> 00:32:30,640
Speaker 1: Israel based commercial real estate company has agreed to sell

628
00:32:30,720 --> 00:32:33,720
Speaker 1: Bridge Tower of building on Manhattan's Upper east Side for

629
00:32:33,760 --> 00:32:36,280
Speaker 1: about one hundred fifty three million dollars. It's part of

630
00:32:36,280 --> 00:32:39,520
Speaker 1: the group's strategic plan to sell non core assets. The

631
00:32:39,560 --> 00:32:42,160
Speaker 1: transaction price is similar to the value of the building

632
00:32:42,200 --> 00:32:45,480
Speaker 1: in the company's books. Cannabis licensees will no longer be

633
00:32:45,640 --> 00:32:49,000
Speaker 1: required to accept storefronts leased by the state, a move

634
00:32:49,080 --> 00:32:52,160
Speaker 1: applicants who want more control over their retail locations will like.

635
00:32:52,400 --> 00:32:55,600
Speaker 1: According to The Times, cannabis regulators have scrapped a rule

636
00:32:55,720 --> 00:32:59,280
Speaker 1: requiring the state's first retail operators to accept storefronts as

637
00:32:59,320 --> 00:33:02,520
Speaker 1: signed by the government. That your Bloomberg Dry State Business Report.

638
00:33:02,600 --> 00:33:05,000
Speaker 1: I'm Ed Corey, alright, ed, thank you. It is five

639
00:33:05,120 --> 00:33:08,959
Speaker 1: thirty six on Wall Street. The following commentary is from

640
00:33:09,040 --> 00:33:14,080
Speaker 1: Bloomberg Opinion. How Republicans lost their House edge in mid terms.

641
00:33:14,440 --> 00:33:18,760
Speaker 1: I'm Justin Fox, the columnist for Bloomberg Opinion. Republican candidates

642
00:33:18,840 --> 00:33:21,200
Speaker 1: got about fifty one percent of the votes cast for

643
00:33:21,240 --> 00:33:23,920
Speaker 1: the House of Representatives in November and ended up with

644
00:33:24,000 --> 00:33:27,200
Speaker 1: about fifty one percent of House seats. Seems fair. No,

645
00:33:27,760 --> 00:33:30,120
Speaker 1: this is not how things worked from two thousand ten

646
00:33:30,240 --> 00:33:34,160
Speaker 1: through two thousand sixteen, when Republicans won much larger shares

647
00:33:34,240 --> 00:33:37,680
Speaker 1: of House seats than votes. The disconnect was most pronounced

648
00:33:37,720 --> 00:33:41,440
Speaker 1: in two thousand twelve, when democrats one point one percentage

649
00:33:41,480 --> 00:33:45,120
Speaker 1: point winning vote margin resulted in a seven point six

650
00:33:45,240 --> 00:33:49,600
Speaker 1: point loss in terms of seats. Jerrymandering after the two

651
00:33:49,680 --> 00:33:52,600
Speaker 1: thousand ten censes played a role in this, but political

652
00:33:52,720 --> 00:33:56,880
Speaker 1: scientists pointed out that Democrats were also just inefficiently distributed,

653
00:33:57,440 --> 00:34:01,040
Speaker 1: dominant in big cities but present in large if ultimately

654
00:34:01,160 --> 00:34:03,480
Speaker 1: losing minorities and much of the rest of the country.

655
00:34:04,280 --> 00:34:07,600
Speaker 1: Since Donald Trump was elected president in two thousand and sixteen,

656
00:34:07,960 --> 00:34:11,800
Speaker 1: this distribution is shifted and the Republican edge has dwindled.

657
00:34:12,400 --> 00:34:15,640
Speaker 1: I'm justin Fox. For more opinion, please go to Bloomberg

658
00:34:15,719 --> 00:34:18,480
Speaker 1: dot com, Slash Opinion or O P I n go

659
00:34:18,800 --> 00:34:22,600
Speaker 1: on the Bloomberg Terminal. This has been Bloomberg Opinion. Listen

660
00:34:22,640 --> 00:34:26,400
Speaker 1: for Bloomberg opinion editorials every weekday. At this time, terminal

661
00:34:26,480 --> 00:34:29,640
Speaker 1: customers can read more at O P I n go.

662
00:34:30,239 --> 00:34:32,719
Speaker 1: It's now five thirty eight on Wall Street. Stay with

663
00:34:32,880 --> 00:34:36,799
Speaker 1: us here on Bloomberg Daybreak for a conversation with Bloomberg's

664
00:34:36,880 --> 00:34:40,040
Speaker 1: read Stevenson. He's got the big Take story on the

665
00:34:40,080 --> 00:34:45,200
Speaker 1: Bloomberg Terminal this morning on Carlos Gone and the extraction

666
00:34:45,400 --> 00:34:48,279
Speaker 1: crew that just made its way out of custody in

667
00:34:48,400 --> 00:34:51,719
Speaker 1: Japan and is now looking for their due. Stay with

668
00:34:51,880 --> 00:34:54,640
Speaker 1: us for that ahead of it. SMP futures are up

669
00:34:54,680 --> 00:34:57,520
Speaker 1: seven points, staff futures up fifty five, Nasty futures up

670
00:34:57,520 --> 00:35:04,160
Speaker 1: twenty eight. This is Bloomberg Markets, headlines and breaking news

671
00:35:04,320 --> 00:35:06,920
Speaker 1: twenty four hours a day at Bloomberg dot Com, the

672
00:35:06,960 --> 00:35:11,080
Speaker 1: Bloomberg Business Outland at Bloomberg quicktake. This is a Bloomberg

673
00:35:11,200 --> 00:35:20,160
Speaker 1: business lash and I'm Karen Moscow. US not Index futures

674
00:35:20,200 --> 00:35:23,200
Speaker 1: moving higher this morning. The dollar are racing in advance

675
00:35:23,280 --> 00:35:25,800
Speaker 1: at the start of a pivotal week for monetary policy

676
00:35:25,880 --> 00:35:28,840
Speaker 1: decisions from the FED, the European Central Bank and a

677
00:35:28,920 --> 00:35:31,279
Speaker 1: host of their peers. We checked the markets all day long.

678
00:35:31,360 --> 00:35:34,520
Speaker 1: Here at Bloomberg SNP futures of eight points or two

679
00:35:34,600 --> 00:35:37,439
Speaker 1: tents of uppercent. Down futures are up about the same

680
00:35:37,480 --> 00:35:39,759
Speaker 1: of fifty eight points, and nastack futures have a quarter

681
00:35:39,840 --> 00:35:42,600
Speaker 1: percent or twenty nine points. The decks in Germany is

682
00:35:42,640 --> 00:35:45,280
Speaker 1: down about two tents of upper cent. Can your treasury

683
00:35:45,360 --> 00:35:47,680
Speaker 1: up twelve thirty seconds held three point five three percent.

684
00:35:47,760 --> 00:35:50,080
Speaker 1: They yield on the two year four point three two percent.

685
00:35:50,520 --> 00:35:52,759
Speaker 1: Nine x Scrude oil is down six tents percent or

686
00:35:52,800 --> 00:35:55,000
Speaker 1: forty three cents at seventy dollars fifty nine cents of

687
00:35:55,080 --> 00:35:57,760
Speaker 1: barrel comics gold is down half percent or nine dollars

688
00:35:57,800 --> 00:36:00,680
Speaker 1: thirty cents at eighteen o one fifty announced. The euro

689
00:36:00,840 --> 00:36:03,200
Speaker 1: one point oh five five nine against the dollar. British

690
00:36:03,239 --> 00:36:05,400
Speaker 1: found one point to two eight six the yen one

691
00:36:05,480 --> 00:36:08,880
Speaker 1: thirty six point seven three and that's a Bloomberg Business Flash.

692
00:36:08,920 --> 00:36:11,000
Speaker 1: Now here's Amy Morris with Moore on what's going on

693
00:36:11,120 --> 00:36:15,200
Speaker 1: around the world. Amy, thank you, Karen. Florida Governor rond

694
00:36:15,200 --> 00:36:17,840
Speaker 1: De Santis thanked some of his South Florida donors at

695
00:36:17,880 --> 00:36:20,680
Speaker 1: a closed door meeting. This was in Miami yesterday, where

696
00:36:20,719 --> 00:36:24,200
Speaker 1: sources tell Bloomberg News to Santis noted how his victory

697
00:36:24,520 --> 00:36:27,960
Speaker 1: could be a blueprint for Republicans in the future. Scientists

698
00:36:28,000 --> 00:36:31,200
Speaker 1: in California now say they've made a breakthrough in nuclear

699
00:36:31,360 --> 00:36:35,440
Speaker 1: fusion technology, producing more energy than consumed in a reaction

700
00:36:35,560 --> 00:36:37,960
Speaker 1: for the very first time. The achievement was made at

701
00:36:37,960 --> 00:36:41,480
Speaker 1: the U S Department of Energies Lawrence Livermore National Laboratory

702
00:36:41,600 --> 00:36:45,000
Speaker 1: near San Francisco. In sports, in the NFL, the Bills

703
00:36:45,040 --> 00:36:47,719
Speaker 1: beat the Jets, Giants lost to the Eagles, Ravens and

704
00:36:47,800 --> 00:36:50,399
Speaker 1: forty Niners win. And hockey the Caps and Bruins win,

705
00:36:50,480 --> 00:36:53,399
Speaker 1: and the NBA the Knicks beat The King's Global News

706
00:36:53,480 --> 00:36:55,960
Speaker 1: twenty four hours a day on errand on Bloomberg Quicktake,

707
00:36:56,200 --> 00:36:59,120
Speaker 1: powered by more than twenty seven journalists and analysts in

708
00:36:59,160 --> 00:37:01,960
Speaker 1: more than one hundred money countries. I'm Amy Morris, and

709
00:37:02,160 --> 00:37:04,759
Speaker 1: this is Bloomberg. Nathan alright, Amy, thank you. It is

710
00:37:04,800 --> 00:37:08,040
Speaker 1: five forty two on Wall Street. This is Bloomberg Daybreak.

711
00:37:08,080 --> 00:37:11,080
Speaker 1: I'm Nathan Hagar alongside Karen Moscow. Take a look at

712
00:37:11,120 --> 00:37:13,919
Speaker 1: some of the other stories making news this morning. Wall

713
00:37:14,000 --> 00:37:16,600
Speaker 1: Streets focus this week will be on inflation data and

714
00:37:16,719 --> 00:37:19,840
Speaker 1: the Fed, but there are still a smattering of earnings

715
00:37:19,920 --> 00:37:23,440
Speaker 1: reports ahead. Let's get the details now from Bloomberg's Charlie p. Fellott.

716
00:37:23,640 --> 00:37:27,120
Speaker 1: Worries about how far central bankers will go to rain

717
00:37:27,239 --> 00:37:30,440
Speaker 1: in inflation have kept investors on edge, and there is

718
00:37:30,520 --> 00:37:34,480
Speaker 1: a great deal of uncertainty surrounding the earnings outlook. Kate

719
00:37:34,560 --> 00:37:37,640
Speaker 1: Moore's head of thematic strategy at black Rock. Really, no

720
00:37:37,800 --> 00:37:41,360
Speaker 1: one knows what earnings are gonna look like in I

721
00:37:41,440 --> 00:37:43,200
Speaker 1: feel bad for the analysts that have to put out

722
00:37:43,239 --> 00:37:46,800
Speaker 1: forecast when the uncertainty factor is so incredibly high and

723
00:37:47,239 --> 00:37:50,760
Speaker 1: you can't make either evaluation or at earnings argument. Among

724
00:37:50,840 --> 00:37:55,400
Speaker 1: this week's earnings reports are Accenture, Adobe, and Oracle in

725
00:37:55,600 --> 00:37:59,759
Speaker 1: New York. Charlie Pellot Bloomberg Daybreak. All right, Charlie, thank you.

726
00:37:59,800 --> 00:38:03,759
Speaker 1: A two prominent strategists are warning about future profit downgrades.

727
00:38:03,840 --> 00:38:06,719
Speaker 1: Morgan Samley's Mike Wilson and David Coston at Goleman SAX

728
00:38:06,800 --> 00:38:10,400
Speaker 1: say earnings could contract more than expected next year. They

729
00:38:10,440 --> 00:38:13,200
Speaker 1: say emergens could come under increased pressure and provide a

730
00:38:13,200 --> 00:38:16,680
Speaker 1: difficult backdrop for equities. Both Wilson and cost and see

731
00:38:16,680 --> 00:38:20,200
Speaker 1: a tough start for stocks I meantime, across the pond,

732
00:38:20,280 --> 00:38:23,480
Speaker 1: Care and Fresh data show the UK economy expanded in October.

733
00:38:23,600 --> 00:38:26,560
Speaker 1: Businesses managed to recover output lost following the death of

734
00:38:26,640 --> 00:38:29,880
Speaker 1: Queen Elizabeth. The second Gross domestic product rows five tenths

735
00:38:29,920 --> 00:38:33,120
Speaker 1: percent from September, which included an extra public holiday for

736
00:38:33,160 --> 00:38:35,560
Speaker 1: the Queen's funeral and a period of national morning. But

737
00:38:35,640 --> 00:38:39,000
Speaker 1: when you look on a quarterly basis, GDP shrank three

738
00:38:39,120 --> 00:38:42,400
Speaker 1: tenths per cent. UK Chancellor Jeremy Hunt weighed in on

739
00:38:42,480 --> 00:38:45,640
Speaker 1: the downbeat data, well, these figures confirm that this is

740
00:38:45,719 --> 00:38:49,720
Speaker 1: a very challenging economic situation here and across the world,

741
00:38:50,560 --> 00:38:53,320
Speaker 1: and it will get worse before it gets better. But

742
00:38:53,480 --> 00:38:56,360
Speaker 1: we have a plan that will more than half inflation

743
00:38:56,520 --> 00:38:58,760
Speaker 1: over the next year and if we stay the course,

744
00:38:59,239 --> 00:39:02,160
Speaker 1: we can get back to the strong economic growth that

745
00:39:02,320 --> 00:39:05,560
Speaker 1: we need. Chancellor Jeremy Hunt spoke earlier this morning. The

746
00:39:05,640 --> 00:39:08,400
Speaker 1: outlook could leave the Bank of England deeply divided this

747
00:39:08,560 --> 00:39:12,080
Speaker 1: week over how much to raise interest rates to fight inflation. Well.

748
00:39:12,120 --> 00:39:14,400
Speaker 1: Staying in the UK, Nathan, the government is planning for

749
00:39:14,560 --> 00:39:18,360
Speaker 1: military staff and civil servants to cover for striking rail, health,

750
00:39:18,480 --> 00:39:21,400
Speaker 1: postal and other workers in the coming weeks. Strikes your

751
00:39:21,440 --> 00:39:23,879
Speaker 1: plan for almost every day through the rest of the month.

752
00:39:24,160 --> 00:39:26,960
Speaker 1: Workers are demanding pay hikes that keep up with inflation,

753
00:39:27,120 --> 00:39:29,880
Speaker 1: resulting in the biggest weave of industrial strife in the

754
00:39:30,040 --> 00:39:34,360
Speaker 1: UK since the eighties. This is the Big Take, the

755
00:39:34,520 --> 00:39:38,600
Speaker 1: best of Bloomberg's in depth original reporting from around the globe.

756
00:39:38,640 --> 00:39:41,520
Speaker 1: This is a really fast moving story that caused a

757
00:39:41,560 --> 00:39:45,360
Speaker 1: lot of outrage among investors. This is so fascinating market

758
00:39:45,480 --> 00:39:47,959
Speaker 1: shutdown in a way it's never done before. That's gonna

759
00:39:47,960 --> 00:39:51,239
Speaker 1: have consequences for years to come. The Big Take on

760
00:39:51,520 --> 00:39:56,680
Speaker 1: Bloomberg Radio coming up to five on Wall Street and

761
00:39:56,800 --> 00:40:00,279
Speaker 1: this morning's Bloomberg Big Take is on Carlo Scone, former

762
00:40:00,360 --> 00:40:04,320
Speaker 1: Nissan chairman, and the price paid by the American father

763
00:40:04,480 --> 00:40:09,400
Speaker 1: and son extraction team that facilitated his daring escape from Japan.

764
00:40:10,040 --> 00:40:12,640
Speaker 1: Joining us now with is the author of the Big

765
00:40:12,719 --> 00:40:15,919
Speaker 1: Take story this morning Bloomberg's read Stevenson read, it's good

766
00:40:15,960 --> 00:40:17,520
Speaker 1: to have you with us. Thanks so much for this.

767
00:40:18,000 --> 00:40:20,360
Speaker 1: Of course, a lot of us are familiar with the

768
00:40:20,440 --> 00:40:24,480
Speaker 1: Carlos Gones story, but maybe not so familiar about Michael

769
00:40:24,560 --> 00:40:27,600
Speaker 1: and Peter Taylor, the father and son who helped in

770
00:40:27,800 --> 00:40:32,360
Speaker 1: his extraction. Tell us more about them, well, Nathan, it

771
00:40:32,520 --> 00:40:36,279
Speaker 1: was about three years ago, almost to the same month

772
00:40:36,480 --> 00:40:41,040
Speaker 1: that Carlos gone. Stage is dramatic to escape out of Japan.

773
00:40:41,880 --> 00:40:43,880
Speaker 1: You know, it's one of those stories that you almost

774
00:40:44,000 --> 00:40:47,240
Speaker 1: never hear about in business news, and so it captured

775
00:40:47,280 --> 00:40:50,879
Speaker 1: the world's attention, and uh to a certain extent, it's

776
00:40:50,880 --> 00:40:53,480
Speaker 1: been forgotten since then. You know, Going is now in

777
00:40:53,600 --> 00:40:58,520
Speaker 1: Lebanon fighting to restore his reputation, although it's unlikely he'llever

778
00:40:58,640 --> 00:41:02,320
Speaker 1: be facing a judge in a court anytime soon. But

779
00:41:02,480 --> 00:41:06,800
Speaker 1: the other forgotten part of the story is the cost

780
00:41:07,040 --> 00:41:10,760
Speaker 1: that you know, others have paid four Carlo Stone's freedom,

781
00:41:10,840 --> 00:41:16,560
Speaker 1: namely Michael Taylor and Peter Taylor, who were unexpectedly extradited

782
00:41:16,680 --> 00:41:22,160
Speaker 1: from the US to Japan last year and then spent

783
00:41:22,320 --> 00:41:27,840
Speaker 1: sixteen months in um the Japanese prison system, which you know,

784
00:41:28,000 --> 00:41:33,080
Speaker 1: some say is much harsher than you might imagine compared

785
00:41:33,160 --> 00:41:36,360
Speaker 1: to the US. And now they're out, they're back in

786
00:41:36,440 --> 00:41:39,680
Speaker 1: the US and also back in by route, and they're

787
00:41:39,719 --> 00:41:45,319
Speaker 1: telling their story both in terms of the sacrifices they made,

788
00:41:46,560 --> 00:41:50,239
Speaker 1: what they think they are owed for their ordeal, and

789
00:41:50,360 --> 00:41:52,759
Speaker 1: as well as some you know, new details about the

790
00:41:52,920 --> 00:41:55,400
Speaker 1: escape that have never been made public. Yeah, it's a

791
00:41:55,480 --> 00:41:59,000
Speaker 1: really interesting story, particularly coming after the news last week

792
00:41:59,040 --> 00:42:01,920
Speaker 1: about Brittney grind Or in the negotiation for her release

793
00:42:02,000 --> 00:42:05,719
Speaker 1: from Russia. Michael and Peter Taylor from your reporting, don't

794
00:42:05,800 --> 00:42:08,720
Speaker 1: mince words when it comes to how they feel about

795
00:42:08,920 --> 00:42:13,759
Speaker 1: the Trump and Biden administrations. Essentially, they feel like they

796
00:42:13,840 --> 00:42:18,480
Speaker 1: were forgotten, weren't they by those administrations in terms of

797
00:42:18,960 --> 00:42:23,839
Speaker 1: their captivity. Indeed, Um, I think, you know, it's easy

798
00:42:23,920 --> 00:42:26,560
Speaker 1: to sort of maybe speculate as to why, but the

799
00:42:26,680 --> 00:42:30,680
Speaker 1: fact remains that, uh, you know, nobody really stepped in

800
00:42:31,880 --> 00:42:35,120
Speaker 1: when the extradition process was happening under the Trump administration.

801
00:42:35,200 --> 00:42:39,440
Speaker 1: In fact, it happened unusually quickly, and then of course,

802
00:42:39,719 --> 00:42:43,600
Speaker 1: once a new administration and was in place, Um, the

803
00:42:43,680 --> 00:42:47,520
Speaker 1: Biden administration also had a chance possibly to put a

804
00:42:48,280 --> 00:42:52,240
Speaker 1: stop to proceedings, but that didn't happen either, and so therefore,

805
00:42:53,120 --> 00:42:57,000
Speaker 1: you know, father and son were promptly shifted Japan where

806
00:42:57,120 --> 00:43:01,040
Speaker 1: they pleaded guilty in a bid for leniency. Who knows

807
00:43:01,120 --> 00:43:03,520
Speaker 1: whether they actually got the leniency or not, but some

808
00:43:03,680 --> 00:43:06,400
Speaker 1: of the conditions they had to go through were pretty harsh.

809
00:43:07,320 --> 00:43:12,040
Speaker 1: Nineties straight days and solitary. And uh. I also heard

810
00:43:12,080 --> 00:43:14,040
Speaker 1: from Michael Taylor that you know, he tried to call

811
00:43:14,160 --> 00:43:17,479
Speaker 1: his dying father and never got a chance to do so. Wow.

812
00:43:17,640 --> 00:43:21,520
Speaker 1: And now they are finally out of the Japanese legal

813
00:43:21,680 --> 00:43:25,759
Speaker 1: system and as you say, looking to get what they

814
00:43:25,840 --> 00:43:29,080
Speaker 1: see as their due from Carlo Stone, as the former

815
00:43:29,160 --> 00:43:33,360
Speaker 1: Nissan chairman tries to rebolster his reputation. What are they

816
00:43:33,480 --> 00:43:36,680
Speaker 1: looking for from Carlos Stone? You've got about a minute

817
00:43:36,719 --> 00:43:42,000
Speaker 1: left here. Indeed, Um, Michael Taylor never did this for profit.

818
00:43:42,600 --> 00:43:45,760
Speaker 1: He has a history of going and helping objective children

819
00:43:46,239 --> 00:43:49,439
Speaker 1: other people in trouble. So at the moment, what they're

820
00:43:49,480 --> 00:43:52,120
Speaker 1: really just looking for is to be made whole. Um.

821
00:43:53,080 --> 00:43:56,040
Speaker 1: The escape itself costs about one point three million dollars,

822
00:43:56,239 --> 00:43:59,319
Speaker 1: I'd say about a two thirds of that had been paid,

823
00:43:59,440 --> 00:44:01,680
Speaker 1: so they're looking for the remainder. But then of course

824
00:44:02,200 --> 00:44:05,160
Speaker 1: there are some astronomical legal costs involved in fighting the

825
00:44:05,239 --> 00:44:09,640
Speaker 1: extradition and navigating the Japanese legal system. Those amount to

826
00:44:09,880 --> 00:44:12,520
Speaker 1: roughly three million dollars. So at the moment, what they're

827
00:44:12,520 --> 00:44:16,400
Speaker 1: really looking for is to be made whole. And perhaps,

828
00:44:16,880 --> 00:44:20,000
Speaker 1: you know, there may be a discussion about something on

829
00:44:20,160 --> 00:44:23,120
Speaker 1: top of that, but that's another chapter to be written

830
00:44:23,160 --> 00:44:26,400
Speaker 1: in this crazy story. Yeah, and it's a story that

831
00:44:26,600 --> 00:44:31,360
Speaker 1: is really fascinating to get more details on, as you mentioned,

832
00:44:31,400 --> 00:44:36,520
Speaker 1: one of those forgotten sidebars from the Carlos Going saga.

833
00:44:36,719 --> 00:44:39,839
Speaker 1: Thanks for this read great having gone with us once again.

834
00:44:39,880 --> 00:44:42,840
Speaker 1: Read Stevenson and Bloomberg News, the author of this morning's

835
00:44:42,920 --> 00:44:47,080
Speaker 1: Big Take on Carlos Gone and his extraction crew. You

836
00:44:47,120 --> 00:44:49,920
Speaker 1: can read much more about it at Ani Big Take

837
00:44:50,000 --> 00:44:54,080
Speaker 1: Go on the Bloomberg Terminal or Bloomberg dot com slash

838
00:44:54,320 --> 00:44:58,000
Speaker 1: Big Take. Future is moving higher this morning. You're listening

839
00:44:58,080 --> 00:45:04,920
Speaker 1: to Bloomberg Daybreak, Markets, headlines and breaking news twenty four

840
00:45:04,960 --> 00:45:07,960
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business

841
00:45:08,040 --> 00:45:11,680
Speaker 1: at and at Bloomberg Quicktake. This is a Bloomberg Business

842
00:45:11,719 --> 00:45:20,400
Speaker 1: Flash and I'm Karen Moscow. You must knock index futures

843
00:45:20,480 --> 00:45:23,600
Speaker 1: higher this morning the dollar are racing on advance. We

844
00:45:23,719 --> 00:45:26,200
Speaker 1: check the markets everything. We check the markets all day

845
00:45:26,239 --> 00:45:28,480
Speaker 1: long here at Bloomberg Radio with S and P futures

846
00:45:28,520 --> 00:45:31,360
Speaker 1: of eleven points or about three tens of Uppercental futures

847
00:45:31,440 --> 00:45:33,440
Speaker 1: up seventy eight points or two tents of upper cent,

848
00:45:33,840 --> 00:45:36,239
Speaker 1: and as deck futures have forty three points are about

849
00:45:36,280 --> 00:45:38,920
Speaker 1: a third of up percent to your treasury of fifteen

850
00:45:38,960 --> 00:45:41,000
Speaker 1: thirty seconds, you have three point five two percent, and

851
00:45:41,040 --> 00:45:43,760
Speaker 1: they yield on the two year four point three two percent.

852
00:45:44,239 --> 00:45:46,640
Speaker 1: Nine max Screwed oil is lower down nine tenths of

853
00:45:46,719 --> 00:45:49,240
Speaker 1: upper cent or sixty one cents at seventy dollars, forty

854
00:45:49,280 --> 00:45:52,279
Speaker 1: one cents of barrel comes. Gold is down four tenths

855
00:45:52,360 --> 00:45:55,280
Speaker 1: of uppercent, down seven dollars ten cents, and one thousand,

856
00:45:55,360 --> 00:45:58,200
Speaker 1: eight hundred three dollars sixty cents. Announced the euro this

857
00:45:58,400 --> 00:46:01,000
Speaker 1: morning one point oh five six were against the dollar,

858
00:46:01,080 --> 00:46:04,160
Speaker 1: British pound one point to to eight five, the yannas

859
00:46:04,160 --> 00:46:06,919
Speaker 1: at one thirties six point six eight, and bitcoins lower

860
00:46:07,000 --> 00:46:11,160
Speaker 1: down seven tenths of upper cent at almost seventeen thousand dollars.

861
00:46:11,400 --> 00:46:14,960
Speaker 1: And that's a Bloomberg business flash. Nathan Karen Thank you.

862
00:46:15,160 --> 00:46:17,520
Speaker 1: It's fifty six on Wall Street Time for our daily

863
00:46:17,560 --> 00:46:20,600
Speaker 1: Bloomberg Lab Brief, exploring legal issues in the news. Today,

864
00:46:20,640 --> 00:46:23,319
Speaker 1: we look at a case involving Harvard's former fencing coach

865
00:46:23,440 --> 00:46:27,440
Speaker 1: and a telecom ceo. They're facing a jury over charges

866
00:46:27,480 --> 00:46:30,360
Speaker 1: that they corrupted the admissions process at Harvard. In a

867
00:46:30,440 --> 00:46:34,839
Speaker 1: case with echoes of the Varsity Blues admission scandal, Jack Joo,

868
00:46:35,080 --> 00:46:38,600
Speaker 1: ceo of I Talk Global Communications, is accused of bribing

869
00:46:38,719 --> 00:46:40,920
Speaker 1: coach Peter Brand to the tune of more than one

870
00:46:40,960 --> 00:46:43,480
Speaker 1: and a half million dollars to help get his two

871
00:46:43,560 --> 00:46:47,719
Speaker 1: sons into Harvard by having them designated fencing recruits. Key

872
00:46:47,800 --> 00:46:50,280
Speaker 1: point at trial is going to be whether the defendant's

873
00:46:50,320 --> 00:46:53,839
Speaker 1: actions harmed Harvard. For more on the case, Bloomberg's June

874
00:46:53,880 --> 00:46:58,360
Speaker 1: Grosso speaks with our legal reporter Laurel Culkins and what's

875
00:46:58,400 --> 00:47:02,919
Speaker 1: the defense the explin nation for all that money? Generosity?

876
00:47:03,520 --> 00:47:06,640
Speaker 1: Defense says, you know, it's the cultural thing. The Zals

877
00:47:06,680 --> 00:47:09,480
Speaker 1: are wealthy and from the Chinese tradition of being generous

878
00:47:09,520 --> 00:47:12,200
Speaker 1: with their friends. And by the way, they say now,

879
00:47:12,400 --> 00:47:13,920
Speaker 1: and they did not say this in any of the

880
00:47:14,000 --> 00:47:17,000
Speaker 1: pre trial filings, but they told the jury on opening day.

881
00:47:17,480 --> 00:47:20,799
Speaker 1: This was all alone that Peter Brand got an inheritance

882
00:47:20,880 --> 00:47:24,520
Speaker 1: from his mom recently and paid everything off with interest.

883
00:47:24,760 --> 00:47:27,360
Speaker 1: Of course, that also happened after he was indicted, and

884
00:47:27,440 --> 00:47:29,400
Speaker 1: of course the prosecutors are going nuts, what do you

885
00:47:29,440 --> 00:47:31,920
Speaker 1: mean there's no evidence that it was ever repaid. So

886
00:47:32,520 --> 00:47:34,840
Speaker 1: the prosecution is actually trying to get the judge to

887
00:47:34,880 --> 00:47:37,000
Speaker 1: say they have to take all that back. And they

888
00:47:37,040 --> 00:47:38,520
Speaker 1: can't tell any of that to the jury because it

889
00:47:38,600 --> 00:47:41,399
Speaker 1: doesn't matter what happened after the indictments. So what's gonna

890
00:47:41,400 --> 00:47:44,240
Speaker 1: be interesting to see what happened now. The defense says

891
00:47:44,520 --> 00:47:49,319
Speaker 1: Joos sons were nationally ranked fencers, outstanding athletes, and good

892
00:47:49,480 --> 00:47:52,800
Speaker 1: students who were admitted on their own merit, but you

893
00:47:52,960 --> 00:47:56,680
Speaker 1: never know with college admissions, and the prosecution says that

894
00:47:57,080 --> 00:47:59,800
Speaker 1: Jaw didn't want to take any chances that is, some

895
00:48:00,000 --> 00:48:03,759
Speaker 1: would be rejected, exactly. And you also have to recognize

896
00:48:03,800 --> 00:48:06,600
Speaker 1: that the two sons are not exactly equal. They both

897
00:48:06,640 --> 00:48:10,359
Speaker 1: had outstanding academics which qualified under Harvard's admissions, and then

898
00:48:10,400 --> 00:48:14,480
Speaker 1: they both were competitive fencers. Shall we say the elder

899
00:48:14,600 --> 00:48:18,080
Speaker 1: son actually went on to become co captain of Harvard's

900
00:48:18,120 --> 00:48:20,800
Speaker 1: fencing team and was second strain all Ivy, so he

901
00:48:20,880 --> 00:48:24,440
Speaker 1: clearly was talented. The younger son also competed for Harvard.

902
00:48:24,560 --> 00:48:26,840
Speaker 1: He racked up, you know, some honors, but not as

903
00:48:26,920 --> 00:48:29,720
Speaker 1: much as his brother. But the other thing is with Harvard,

904
00:48:29,880 --> 00:48:32,560
Speaker 1: unlike some of the other colleges, the coach can't just

905
00:48:32,640 --> 00:48:34,880
Speaker 1: say this is my recruit and they automatically get in.

906
00:48:35,080 --> 00:48:38,680
Speaker 1: Harvard has a kind of a whole student evaluation process,

907
00:48:38,760 --> 00:48:42,120
Speaker 1: and there's an interview and a committee process, so it

908
00:48:42,160 --> 00:48:44,680
Speaker 1: will very much tips the scale in your favor, but

909
00:48:44,800 --> 00:48:47,719
Speaker 1: it's not a deadlock. So I think Zoo was trying

910
00:48:47,800 --> 00:48:49,959
Speaker 1: to tilt that scale as much in his son's favor

911
00:48:50,040 --> 00:48:52,840
Speaker 1: as possible. But a big point in the trial is

912
00:48:52,880 --> 00:48:57,160
Speaker 1: going to be was Harvard harmed? Because the zo's technically

913
00:48:57,239 --> 00:49:00,960
Speaker 1: qualified for admissions on their own merit. They competitively for

914
00:49:01,080 --> 00:49:03,840
Speaker 1: Harvard all four years that each boy was there, and

915
00:49:04,000 --> 00:49:06,759
Speaker 1: they both paid full tuition. They didn't get any scholarships,

916
00:49:06,880 --> 00:49:10,040
Speaker 1: so it's a question did Harvard get harm who's the victim? Here?

917
00:49:10,800 --> 00:49:14,040
Speaker 1: That's Bloomberg Legal reporter Laura Culkins speaking with June Grosso,

918
00:49:14,120 --> 00:49:16,320
Speaker 1: and you can catch more of that interview plus analysis

919
00:49:16,400 --> 00:49:18,960
Speaker 1: of the latest legal news by subscribing to the Bloomberg

920
00:49:19,040 --> 00:49:22,000
Speaker 1: Law podcast or downloading the show at Bloomberg dot com.

921
00:49:22,120 --> 00:49:26,000
Speaker 1: Slash podcasts and attorneys can find exceptional legal research and

922
00:49:26,200 --> 00:49:29,719
Speaker 1: business development tools at Bloomberg law dot com and on

923
00:49:29,760 --> 00:49:33,960
Speaker 1: the Bloomberg terminal at b Law go right now. S

924
00:49:34,000 --> 00:49:36,440
Speaker 1: and b Futures up ten points, stole Futures up seventy one,

925
00:49:36,520 --> 00:49:39,239
Speaker 1: nastac Future is hired by forty one points. Tend your

926
00:49:39,239 --> 00:49:42,160
Speaker 1: treasuries up fourteen thirty seconds of the yield three point

927
00:49:42,200 --> 00:49:44,200
Speaker 1: five two per cent, straight ahead and check of the

928
00:49:44,280 --> 00:49:46,520
Speaker 1: latest business headlines. All the news you need to start

929
00:49:46,560 --> 00:49:50,080
Speaker 1: your day. Our two of Bloomberg Daybreak starts right now.