Speaker 1: Live from the Bloomberg Interactive Brooker Studios is his Bloomberg
Speaker 1: Daybreak for a Monday, December twelve coming up this hour.
Speaker 1: A huge week for central banks, with the Fed, ECB
Speaker 1: and Bank of England all making policy decisions. Treasury Secretary
Speaker 1: Janet Yellen says inflation will be much lower by the
Speaker 1: end of next year. Am JEN makes its biggest acquisition ever,
Speaker 1: and the January six Committee gets a step closer to
Speaker 1: its final report. I'm Amy Morris. New York subway officials
Speaker 1: are looking at hiking fairs, and the area is bracing
Speaker 1: for its first major snow event this season. John stash
Speaker 1: Allard swards the Giants got blown out by Philadelphia, the
Speaker 1: Jets lost in Buffalo, the Nicks sacrament them. That's all
Speaker 1: trading ahead on Bloomberg Daybreak on Bloomberg eleven three on
Speaker 1: New York, Bloomberg one, Washington, d C, Bloomberg one oh
Speaker 1: six one, Boston, Bloomberg nine sixties and Francisco Syrius XM
Speaker 1: one nine team and around the world Old on Bloomberg
Speaker 1: Radio dot Com and via the Bloomberg Business app. Good Morning,
Speaker 1: I'm Nathan Hagar, and I'm Karen Moscow and US DOT
Speaker 1: index futures are on the rise this morning. It is
Speaker 1: five oh one on Wall Street, and we check the
Speaker 1: markets all day long year at bloomberg S and P
Speaker 1: futures up seven points or two tenths of a percent,
Speaker 1: Dow futures up forty one points or a tenth of
Speaker 1: a percent, and NASDAIC futures are up twenty eight points
Speaker 1: or a quarter percent. The decks in Germany is down
Speaker 1: at tenth of a percent, and the tenure Treasury is
Speaker 1: up ten thirty seconds here three point five four percent,
Speaker 1: yield on the two year four point three two percent.
Speaker 1: Nathan Karen, we begin this morning with a big week
Speaker 1: for central bank decisions, both here and abroad. Let's get
Speaker 1: a preview from Bloomberg's Michael McKee. Are you ready for risk?
Speaker 1: We have a host of major market moving events this week. Tuesday,
Speaker 1: us c P I will weigh on investors views of
Speaker 1: what the Fed will and has to do. Wednesday, the
Speaker 1: Fed will tell us not just a rate move, but
Speaker 1: new economic forecasts and a new dot plot. How high
Speaker 1: do they think US interest rates have to go? How
Speaker 1: high will they have to go in Europe? Well, Thursday,
Speaker 1: all eyes turned to the ECB, which will also be
Speaker 1: moving rates up and offering new forecasts. What kind of
Speaker 1: recession will they see? The Bank of England has already
Speaker 1: forecast contraction, but with inflation high, they are expected to
Speaker 1: raise rates again on Thursday. The question on thread Needle Street,
Speaker 1: when do they stop? Michael McKie blue Berg Daybreak A
Speaker 1: ry Michael, thank you well so far the juries out
Speaker 1: and whether central banks are winning the war on inflation?
Speaker 1: But Treasury Secretary Janet Yellen is optimistic. She says prices
Speaker 1: should be much lower by the end of next year.
Speaker 1: As long as there aren't any unexpected shocks to the economy,
Speaker 1: I believe inflation will be lower. Um. I am very
Speaker 1: hopeful that the labor market will remain quite healthy so
Speaker 1: that people can feel good about their finances. In an
Speaker 1: interview with CBS IS sixty minutes, Secretary Yellen said ending
Speaker 1: Russia's war in Ukraine would be the single best thing
Speaker 1: for the global economy. She says US support for Ukraine
Speaker 1: will continue, quote as long as it takes. We're doing
Speaker 1: everything we can to bring this war to a conclusion.
Speaker 1: Of course, we're providing considerable help um to Ukraine, both
Speaker 1: military and economic, and listeners in Washington can hear sixty
Speaker 1: minutes from CBS Sunday nights at ten on Bloomberg. Support
Speaker 1: for Ukraine will be high on the agenda, Karen, when
Speaker 1: Group of seven leaders meet virtually today. The White House
Speaker 1: says President Biden spoke with Ukrainian President vladimir's Lensky last
Speaker 1: night to underscore his support. The US has promised thirty
Speaker 1: eight billion dollars in military aid and delivered thirteen billion
Speaker 1: in direct aid to Ukraine so far. Meantime, Nathan, the
Speaker 1: US will send a delegation to China on the coming days.
Speaker 1: The move follows up on President Biden's meeting with Chinese
Speaker 1: President Sheijin, paying last month that at the G twenty,
Speaker 1: the two countries have plenty of disagreements, including over Taiwan
Speaker 1: and US moves to limit China's economic and technological influence.
Speaker 1: We have moves on a Capitol Hills response to last
Speaker 1: year's insurrection, Karen. The January six Committee has taken another
Speaker 1: step on its way to producing its final report, with
Speaker 1: a new subcommittee meeting. Bloomberg's Backster reports. The stated purpose
Speaker 1: of the meeting possible prosecution on criminal charges coming out
Speaker 1: of the insurrection. Congressman Adam Schiff on CBS has heard
Speaker 1: here on Bloomberg. I think we're all certainly an agreement
Speaker 1: that there is evidence of criminality here shifts as a
Speaker 1: committee has been able to provide very important information to
Speaker 1: the d o J. But just as important, I think
Speaker 1: it makes an important statement, not a political one, but
Speaker 1: a statement about the evidence of an attack on the
Speaker 1: institutions for democracy and the peaceful transfer of power. Less
Speaker 1: than two weeks until the curtain comes down in San Francisco.
Speaker 1: I'm at Baxter Bloomberg Gay Break, all right, and thank
Speaker 1: you all. Turning to the markets now, we have a
Speaker 1: couple of deals to kick off the week in at
Speaker 1: one in the biotech industry. Let me get the latest
Speaker 1: live with the Bloomberg Steve Rappaport, Good morning, Steve, the
Speaker 1: Good morning, Karen and Nathan Mgen plans to buy Horizon
Speaker 1: Therapeutics at a valuation of twenty six billion dollars in
Speaker 1: what would be its largest acquisition to date, sources telling
Speaker 1: Bloomberg News, the biotech giant offered about one sixteen dollars
Speaker 1: for each Horizon share. Horizon stock closing Friday at ninety
Speaker 1: seven dollars and twenty seven cents shares jumping more than
Speaker 1: eleven percent this morning in pre market trading. It's not
Speaker 1: a done deal yet, though people familiar with the matters
Speaker 1: say negotiations could still fall apart. Live to New York.
Speaker 1: I'm Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you,
Speaker 1: And we also have an acquisition involving Microsoft. The company
Speaker 1: has agreed to buy a steak in the London Stock
Speaker 1: Exchange Group. The deal gives Microsoft a four percent equity
Speaker 1: holding as part of a new long term strategic partnership
Speaker 1: stakes part of a broader tenure agreement to help the
Speaker 1: London Stock Exchange owner developed data, analytics and cloud infrastructure
Speaker 1: using Microsoft's products. We'll staying in London now, Nathan. We
Speaker 1: have a couple of major storage that this morning centered
Speaker 1: on the UK economy. There's fresh growth data from the
Speaker 1: UK as the country grapples with widespread strikes. Let's go
Speaker 1: to London and get the latest, Live with Bloomberg's James
Speaker 1: wild Clock. Good morning, James, Good morning from a frosty UK. Karen.
Speaker 1: The economy here expanded north point five percent in October
Speaker 1: as business recovered output loft in public holidays after the
Speaker 1: death of the Queen. But with strikes across the country
Speaker 1: affecting health, transport and education, the outlook is much grimmer.
Speaker 1: You can already see that in hospitality, with pubs and
Speaker 1: restaurants saying Christmas party bookings are as bad as they
Speaker 1: were during COVID as people canceled due to rail strikes.
Speaker 1: The UK government is meeting this morning to discuss sending
Speaker 1: in the army to fill in for workers walking out
Speaker 1: in London. James Wilcock, Bloomberg, day break, All right, James,
Speaker 1: thank you. And in banking news this morning, Reuter's is
Speaker 1: reporting the Morgan Stanley plans to cut investment bankers annual
Speaker 1: bonuses in Asia by as much as fifty percent this year.
Speaker 1: Scale the cuts and its Asia business could possibly reuplicated
Speaker 1: in the US and Europe, according to this report. Local
Speaker 1: headlines in the check of Sports. Next, this is Bloomberg.
Speaker 1: So five oh seven on Wall Street, we had thirty
Speaker 1: two degrees in central parks. It's gonna stay Shuly today
Speaker 1: in the sunshine, highs only near forty degrees, and we're
Speaker 1: gonna get down to the upper twenties tonight. Welcome to
Speaker 1: winter's bringing. Amy Morris for look what else is going
Speaker 1: on in New York and around the world. Good morning Amy,
Speaker 1: Good morning Nathan. More than thirty years after the bombing
Speaker 1: of pan amp Like one oh three over lockerby Scotland
Speaker 1: that killed two hundred seventy people, including thirty eight New
Speaker 1: Jersey residents, a suspect is in US custody. Bert Ammerman's
Speaker 1: brother Tom from New Jersey, says there's just no closure.
Speaker 1: The two daughters at the Times six and four wife.
Speaker 1: He was thirty six young. He didn't get to live
Speaker 1: his life. The suspect is expected to make a court
Speaker 1: appearance in Washington, d c. On criminal federal charges. New
Speaker 1: York subway officials are looking to avoid a budget disaster.
Speaker 1: The Metropolitan Transportation Authority says it could face a budget
Speaker 1: gap of nearly three billion dollars by The New York
Speaker 1: Times reports they're considering raising the transit systems base fair
Speaker 1: a couple of times by just over three dollars. It
Speaker 1: would be the first time they've talked about raising fairs
Speaker 1: since the pandemic began. Forecasters say up to five inches
Speaker 1: of snow could fall on parts of northwestern New Jersey today.
Speaker 1: It is the first major snow event of the season.
Speaker 1: Governor Phil Murphy cautioned motorists to be careful when driving
Speaker 1: north of It's, where a wintry mix of snow and
Speaker 1: ice is expected. It is the largest oil spill in
Speaker 1: Keystone Pipeline history, more than five eighty eight thousand gallons
Speaker 1: of crude. Officials say they've got the spill contained for now.
Speaker 1: Warren Martin is the executive director of Kansas Strong, a
Speaker 1: nonprofit organization that educates people about the oil and gas industry.
Speaker 1: Spill is a little bit different than some of the
Speaker 1: past pipeline spills because it involves a body of water,
Speaker 1: and so it's not real certain how the e p
Speaker 1: A Is going to respond to that. They have to
Speaker 1: approve starting back up the pipeline, and so there's a
Speaker 1: remediing Asian process that takes place to clean up all
Speaker 1: the oil to analyze the pipeline. Industry insiders believe the
Speaker 1: pipe will be up and running around December twentie. NASA's
Speaker 1: Orion spacecraft splashed down in the Pacific Ocean off the
Speaker 1: coast of Mexico yesterday, bringing a successful and to a
Speaker 1: twenty five day test flight that sent the uncrewed vehicle
Speaker 1: around the Moon and back to Earth. Artimist one helps
Speaker 1: pave the way for NASA's program to return humans to
Speaker 1: the surface of the Moon. Global News twenty four hours
Speaker 1: a day on airand on Bloomberg Quick Take, powered by
Speaker 1: more than twenty d journalists and analysts in more than
Speaker 1: one hundred twenty countries. I'm Amy Morris. This is Bloomberg,
Speaker 1: Nathan Okay, Amy, thank you. Grown up to five ten
Speaker 1: on Wall Street time for the Bloomberg Sports Update, brought
Speaker 1: to you by Trice State OUTI. Good morning, John Stowns,
Speaker 1: Good morning Nathan. Everyone knew it was going to be
Speaker 1: a tough Sunday for the Jets and Giants, and sure
Speaker 1: enough both teams lost. Jets were in it in Buffalo.
Speaker 1: Defense again played well, but for the second straight week,
Speaker 1: the offense pouced only one touchdown the Bills one twenty
Speaker 1: to twelve. Mike White in defeat seven of forty four.
Speaker 1: He took a beating twice said to leave after the game.
Speaker 1: White went to the hospital for for crostionary measures with
Speaker 1: injured ribs. Jet bright Spot was rookie running Backsnovan ninety
Speaker 1: games seventy one yard scored the Jets only touchdown as
Speaker 1: for the Giants never ended at MetLife Philadelphia, with touchdowns
Speaker 1: on the first three possessions and a Giant's illegal punt
Speaker 1: didn't help things. Final was forty eight to twenty two,
Speaker 1: most points the Eagles have scored in a road game
Speaker 1: against the Giants since nineteen seventy one. Philly now in
Speaker 1: NFL best twelve and one, six and oh on the road,
Speaker 1: while Brian Dabele's Giants winless in their last four games.
Speaker 1: You're winning, it's five. When you're losing this humbling. Um
Speaker 1: lose like this, you own it it. Don't make any excuses.
Speaker 1: They played well. Um, when we get to you know,
Speaker 1: have an opportunity to get ready and and play a
Speaker 1: big game on Sunday night. Yeah, that's a game in Washington.
Speaker 1: Those two teams are tied, vying with Seattle for two
Speaker 1: wild card spots, getting some help yesterday when Seattle lost
Speaker 1: at home to Carolina. Next day, Hot their fourth win
Speaker 1: in a row. They've played great defense and all four
Speaker 1: at the Garden they beat. Sacramento is a good team
Speaker 1: this year. One nine nine R J Barrett, Julius Randall
Speaker 1: both with twenty seven points, all of those for Randall
Speaker 1: coming the first half. He got ejected in the second half,
Speaker 1: picking up a couple of technicals. Low scoring Battle of
Speaker 1: New Jersey seating All forty five Rutgers forty three. No
Speaker 1: one either team scored more than ten points. Both teams
Speaker 1: are six and four. Paul Silas has passed away at
Speaker 1: the age of seventy nine. Played sixteen NBA seasons, won
Speaker 1: two championships in Boston. Was later a long time NBA
Speaker 1: coach John stash Were Bloomberg Sports Nathan all Right, John,
Speaker 1: thank you. Bloomberg Sports is brought to you. Buy OUTI
Speaker 1: don't let someone else drive off in the Outye model
Speaker 1: you've always wanted. Visit your local Tri state autie dealer
Speaker 1: to get behind the wheel of yours today, or visit
Speaker 1: outie Offers dot com for more information, s andp futures
Speaker 1: right now up seven points down, futures up forty eight
Speaker 1: and nastac futures are hired by twenty six points. The
Speaker 1: tenure treasury up eleven thirty seconds yield three point five
Speaker 1: three percent. It's five twelve on Wall Street. This is
Speaker 1: Bloomberg Daybreak. At the start of a very busy week
Speaker 1: for investors and for central banks. We are joined live
Speaker 1: this morning by Lori Calvacina, the head of US equity
Speaker 1: strategy at RBC Capital Markets. Lori, it's great to speak
Speaker 1: with you this morning ahead of a very busy week
Speaker 1: for central banks. You've got the FED on Wednesday and
Speaker 1: then a bunch of other decisions on Thursday. What kind
Speaker 1: of market reaction are you expecting from what we could
Speaker 1: see from the central bankers this week? All right, well,
Speaker 1: thanks for having me as always naked. Um. Look, I
Speaker 1: think you know, the sort of the decision by the
Speaker 1: FED is pretty well understood at this point, but I
Speaker 1: think there's always equity investors are a tune to what
Speaker 1: the commentary is and sort of the color on where
Speaker 1: things are going forward. And as I talked to investors,
Speaker 1: you know, I really do sense that they would like
Speaker 1: to be talking about something other than the FED in
Speaker 1: three so they would like to know I really kind
Speaker 1: of you know that we're we're still silt set on set,
Speaker 1: closer to the end than the beginning of this hiking cycle. Um.
Speaker 1: I think if you get anything less, any advocation otherwise,
Speaker 1: I think that we are going to see rocky markets,
Speaker 1: and I do worry that, you know, we we do
Speaker 1: see a federal reserve that doesn't like having seen equity
Speaker 1: markets recovered as much as they have, and so there's
Speaker 1: always the risk in my mind that the FED could
Speaker 1: try to talk things down a bit. Well, a lot
Speaker 1: of the talk we've been hearing from the FED up
Speaker 1: two now is that rates are going to have to
Speaker 1: stay higher for longer. Do you think the market has
Speaker 1: gotten that message. I think the market has gotten that message,
Speaker 1: but it is still a debate of exactly how high
Speaker 1: and exactly how long. Um So I think, you know,
Speaker 1: there is still some uncertainty in investors mind at exactly
Speaker 1: what the right level is. And I'll just give you
Speaker 1: a good, you know, good example, and this is more
Speaker 1: on inflation than rates. But I was not talking to
Speaker 1: investors in Europe last week, and I found generally that
Speaker 1: most people are thinking of an inflation rate that's stay
Speaker 1: sticky in the US and around four percent, which seems
Speaker 1: a bit higher than what I've heard from talking to
Speaker 1: US based investors. So I do think there is still
Speaker 1: some room for debate and room for the market to
Speaker 1: really try to figure out some of those issues in
Speaker 1: terms of specific levels going forward. So that is interesting
Speaker 1: because we did get the commentary just last night broadcast
Speaker 1: on sixty minutes from Treasury Secretary Janet Yelling with her
Speaker 1: expectation that inflation could drop pretty significantly by the end
Speaker 1: of next year. What's it gonna take for that to
Speaker 1: filter into this market? You know, I think that that
Speaker 1: is something that equity markets would very much like to see.
Speaker 1: And I think that, you know, I I sort of
Speaker 1: told the investors I spoke with last week. I've talked
Speaker 1: to plenty of investors in the US have been doing
Speaker 1: the work on different inputs of inflation, different things that
Speaker 1: are associated with inflation, different leading indicators of inflation, trying
Speaker 1: to make the taste that things have been peaking and
Speaker 1: that things are set to moderate. Um. So again, I
Speaker 1: think it's it's starting to get there. But I think
Speaker 1: it really is just a question of getting into the
Speaker 1: new year and really seeing that said rhetorics start to
Speaker 1: shift in a more significant way. Of course, we're going
Speaker 1: to get one last read on inflation tomorrow and the
Speaker 1: consumer price index before the FED decision. You're expecting any
Speaker 1: market volatility off the back of the CPI print. I
Speaker 1: think unfortunately. UM, there's always some market volatility, either heading
Speaker 1: in or coming after. And I will tell you, Nathan,
Speaker 1: I think that we're just at a time in the
Speaker 1: year when nerves are really thin, people are a little
Speaker 1: bit on edge, and there's tremendous amount concerned about the
Speaker 1: outlook for three. So in general, when I'm looking at
Speaker 1: kind of these bigger, you know, sort of news events,
Speaker 1: I'm looking at them, you know, it's more of potential
Speaker 1: sources of reasons for investors to take profits and things
Speaker 1: to sell off. In terms of twenty three, you mentioned
Speaker 1: earlier that markets would like to be speaking about anything
Speaker 1: other than the FED in three. What are you looking
Speaker 1: at in terms of other catalysts that they could move
Speaker 1: markets and affect your outlook into the next year. Well,
Speaker 1: you know what was really interesting May than last week
Speaker 1: I heard a lot about recent dollar weakness, and again
Speaker 1: I was talking about for the European based investors UM,
Speaker 1: and then I was also hearing you know, a fair
Speaker 1: amount about China reopening that story UM, and also just
Speaker 1: the idea that Europe has been out performing the US.
Speaker 1: So I think those are potentially you know, sort of
Speaker 1: new themes that investors could continue to gravitate towards next year.
Speaker 1: But I have to tell you, if you think about
Speaker 1: the US versus Europe, the US still looks extremely expensive. UM.
Speaker 1: So we're basically looking for a flat market next year.
Speaker 1: And I view that issue of expensive US valuations versus
Speaker 1: Europe is just another overhang at headwinds that you excualies
Speaker 1: have to contend with. What are you looking for in
Speaker 1: terms of earnings for next year? We got a couple
Speaker 1: of notes just overnight, UH with the idea that earnings
Speaker 1: revisions may need to come down even further next year.
Speaker 1: Could that be a potential headwind for stocks? I think so.
Speaker 1: I think it is a complicated matter. We are at
Speaker 1: one which is well below the bottom up insensus, which
Speaker 1: has still been tracking up round two thirty to thirty
Speaker 1: one UM, and we have seen some strategists are down
Speaker 1: in our neighborhood. Others are looking for more flattish type earnings. UM.
Speaker 1: I do think that that is a headwind simply because
Speaker 1: it creates volatility and individual stocks investors need certainty on
Speaker 1: multiples before they're comfortable coming into By that being said,
Speaker 1: we do typically see that most cuts and percentage terms
Speaker 1: are completed by April in most years of earning downgrades.
Speaker 1: And additionally, if you look at the rate of revisions
Speaker 1: to the upside, we typically see that the SMP five
Speaker 1: hundred bottoms three to six months before estimates on individual
Speaker 1: companies stopped going down. So I think it's something that
Speaker 1: adds to volatility that need to reduce forecast. But I
Speaker 1: don't think it necessarily tells us we have to make
Speaker 1: a new low in the first half of the year.
Speaker 1: I want to get more on what's affecting your outlook
Speaker 1: for the next year. Of course, it's something that a
Speaker 1: lot of analysts are talking about the expectation for what
Speaker 1: investments could do in three So we're going to continue
Speaker 1: this conversation with Lori Calvacina, the Ahead of US Equity
Speaker 1: strategy at RBC Capital Markets, in just the next few minutes.
Speaker 1: So stay with us here on Bloomberg day Break. Right now,
Speaker 1: SMP futures are higher by seven points, down futures of
Speaker 1: forty Nasdaq futures on the rise by twenty six points
Speaker 1: this morning, and you're listening to Bloomberg day Break, markets
Speaker 1: headlines and breaking news twenty four hours a day at
Speaker 1: Bloomberg dot Com. The Bloomberg business outland at Bloomberg quick tape.
Speaker 1: This is a Bloomberg business lash and I'm Karen Moscow
Speaker 1: and US DOT index futures are higher this morning. The
Speaker 1: dollar are racing in advance at the start of a
Speaker 1: pivotal week for monetary policy decisions from the Federal Reserve,
Speaker 1: European Central Bank and a host of their peers. We
Speaker 1: checked the markets all day long on Bloomberg radios and
Speaker 1: P futures up about seven points of almost two tens
Speaker 1: of upper Cental futures up forty two points or a
Speaker 1: tenth of upper cent, and nasday futures of twenty three
Speaker 1: points or two tenths of upper cent. The decks in
Speaker 1: Germany's down the most, two tenths of uppercent. Ten year
Speaker 1: treasury up twelve thirty seconds. You have three point five
Speaker 1: three percent, and they yield on the two year four
Speaker 1: point three two percent. Nine next, Screwed oil is down
Speaker 1: six tenths per cent or forty cents, and seventy dollars
Speaker 1: sixty two cents of arrol coll Max School there is
Speaker 1: down four tenths per cent or seven oll There's fifty
Speaker 1: cents and eighteen o three thirty announced the euro one
Speaker 1: point oh five five nine against the dollar. British found
Speaker 1: one point two two seven too. He had one thirty
Speaker 1: six point seven zero and bitcoins down a tensive a
Speaker 1: percent at about sixteen thousand, nine hundred dollars. And that's
Speaker 1: a Bloomberg business flash. Now here's Amy Morris with Moore
Speaker 1: on what's going on around the world. Any good morning,
Speaker 1: all right, thank you, Karen. Good morning to you. Some
Speaker 1: other news you'll need from around the world. O Libyan
Speaker 1: man suspected in the ninety eight bombing a fan amp
Speaker 1: like one oh three over Scotland is now in US custody.
Speaker 1: A Department of Justice spokesperson says the alleged operative expected
Speaker 1: to make an initial appearance in the U. S District
Speaker 1: Court for the District of Columbia. The operator of the
Speaker 1: Keystone Pipeline system says they've finally gotten that breach under
Speaker 1: control for now after spilling more than five d eighty
Speaker 1: eight thousand gallons of crude into Mill Creek in Kansas.
Speaker 1: And sports, the NFL Bills beat the Jets, Ravens and
Speaker 1: forty Niners win, and in hockey the Caps and Bruins
Speaker 1: both win. Global news to win four hours a Day
Speaker 1: on errand on Bloomberg Quick Take, powered by more than
Speaker 1: twenty seven hundred journalists and analysts in more than one
Speaker 1: hundred twenty countries. I'm anymore is this is Bloomberg Nathan okay, Amy,
Speaker 1: thank you for coming up to five twenty four on
Speaker 1: Wall Street. I'm Nathan Hagar. This is Bloomberg Daybreak, and
Speaker 1: Lorie Calvacina is back with us as promised head of
Speaker 1: US Equity Strategy at RBC Capital Markets. Laurie, I want
Speaker 1: to get more on your view into three. We did
Speaker 1: a survey here Bloomberg News just a few days ago
Speaker 1: on the outlook, and seventy one percent of respondents you
Speaker 1: got back to us said they see stocks rising in three,
Speaker 1: the average around ten percent. They're thinking most of that
Speaker 1: gain is going to happen in the second half. Is
Speaker 1: that of you? You share? Hi? So, so listen. I
Speaker 1: think it's a fantastic question. I think your survey respondents
Speaker 1: are probably a little bit more optimistic from the south
Speaker 1: side strategy community. I've been one of the more constructive
Speaker 1: ones on the next one. Outlooks with her aready one
Speaker 1: hundred target, which at the time we priced it was
Speaker 1: about a three percent game, so that was against late
Speaker 1: November levels. But I will say the sort of view
Speaker 1: that markets are going to have a rocky start to
Speaker 1: the year and do better in the second half of
Speaker 1: the year, that is a view I share, um But
Speaker 1: one risk to that view is, frankly, that that is
Speaker 1: also a pretty consensus view, not just among your survey respondents,
Speaker 1: but among the south side strategy community right now. Um. So,
Speaker 1: I think we have to see how much of this
Speaker 1: gets priced in in December. That's always something that happens
Speaker 1: when we roll over into in the year, and of
Speaker 1: course we have to see what the new stories are
Speaker 1: for the next year. But I do think we've got,
Speaker 1: you know, some issues to work through. Ultimately, I do
Speaker 1: think markets will be on stronger footing at the end
Speaker 1: of the year, but we've got a little bit of
Speaker 1: work to do to get there. I guess some of
Speaker 1: the issues I can think of to work through would
Speaker 1: include the war in Ukraine and how the reopening in
Speaker 1: China is going to work out. What are some other
Speaker 1: potential head wins. Do you see those as major headwinds
Speaker 1: for this market? You know, I do see a Russia
Speaker 1: Ukraine is a major overhanging you know, I think I'm
Speaker 1: still digesting what's going on in China in terms of
Speaker 1: how that that impacts US equity markets. But the reality
Speaker 1: is that if you put those political issues aside, we've
Speaker 1: got plenty of other issues. Um. I think you know,
Speaker 1: as I mentioned in the last segment, the US doesn't
Speaker 1: look cheap right now, um, not just versus European equities,
Speaker 1: but also we don't really look that appealing in the
Speaker 1: US equity market relative to bonds. And I will say
Speaker 1: that is something you know that just about any sort
Speaker 1: of crocess that indicator that I can run, I simply
Speaker 1: don't see a compelling case through US equities at this
Speaker 1: moment in time. And we've seen that in the past
Speaker 1: that has impacted money clothed into the respect about st classes. Um.
Speaker 1: So I think that's one big issue we've got. I
Speaker 1: think another issue, you know, sort of related to earnings.
Speaker 1: But I think just the onsete of a more challenging
Speaker 1: economy is something that equity investors are going to have
Speaker 1: difficulty dealing with. Because we have been talking about the
Speaker 1: idea of consumer and corporate resilience for so long. I
Speaker 1: think that's going to engender discussions about whether or not.
Speaker 1: We're on the precess of a deeper, longer, more lasting,
Speaker 1: durable type recession. And I'll just give you one sat Nathan. Historically,
Speaker 1: when you're in at you know, sort of GDP environments
Speaker 1: or zero to two percent in real terms on average
Speaker 1: and on a medium basis, the pop market is flat.
Speaker 1: So markets don't like that sort of very sluggish type
Speaker 1: growth environment that's anticipated right now if you look at
Speaker 1: consensus forecasts. No, it is going to be very interesting
Speaker 1: to see how the federal reserve outlook for next year
Speaker 1: plays into what sell side and buy side strategists are thinking.
Speaker 1: When it comes to Lori Calvacina as always great to
Speaker 1: get your thoughts, Thanks again for being with us. Lori Calvacina,
Speaker 1: head of US Equity Strategy at RBC Capital Markets. Right now,
Speaker 1: SMP futures are up six points, down futures up forty five,
Speaker 1: and NASTAC futures are higher by twenty one points. The
Speaker 1: tenure Treasury is up thirteen thirty seconds the three point
Speaker 1: five three percent Ahead of this week's FED decision and
Speaker 1: the inflation data. We'll get this morning's top stories and
Speaker 1: local headlines straight ahead. First, a look at today's Bloomberg
Speaker 1: Weather Forecast. Watch out for some slippery spots this morning,
Speaker 1: well north and west of the city. It looks like
Speaker 1: drier weather's headed our way and cloudiness will be giving
Speaker 1: way to sunshine. We'll climb up to about forty today,
Speaker 1: clear skies Tonight the thirty downtown will be in the teens.
Speaker 1: In the suburbs, sunshine Tomorrow, We're close to forty, clear
Speaker 1: skies the thirty tomorrow night. High pressure will keep it
Speaker 1: sunny through Wednesday, with heights around forty. I'm Rob Caroline
Speaker 1: with your three day forecast on Bloomberg eleven three oh
Speaker 1: broadcasting live from the Bloomberg Interactive Broker Studio in New York,
Speaker 1: Bloomberg Elving Free to Washington, d C. Bloomberg nine to Boston,
Speaker 1: Bloomberg one O six one to San Francisco, Bloomberg nine
Speaker 1: six to the country, Sirius XM to A one nine
Speaker 1: te and around the globe, the Bloomberg Business apt and
Speaker 1: Bloomberg Radio dot Com. This is Bloomberg Daybreak. It's live
Speaker 1: twenty eight on Wall Street. Good morning on Nathan Hagar
Speaker 1: and I'm Karen Moscow and We're are just about four
Speaker 1: hours away from the open of US trading. Let's get
Speaker 1: you up to date on the news you need to
Speaker 1: know at this hour. US futures are higher this morning
Speaker 1: as we enter a big week for central banks. The Fed,
Speaker 1: ECB and Bank of England are is set to make
Speaker 1: policy decisions Wednesday and Thursday, and when it comes to
Speaker 1: the Fed, the Central Bank could be poised to shift
Speaker 1: gears at least a little. And Bloomberg's Minny Deal Judais
Speaker 1: has more. The Fed has been tightening in a big way,
Speaker 1: winding up the last four meetings with jumbo seventy basis
Speaker 1: point rate hikes to fight inflation. Higher rates risk of recession, though,
Speaker 1: and economists see the Fed opting for smaller half point hikes,
Speaker 1: mindful that efforts to steer the US economy could drive
Speaker 1: it off the road. There's room for the Fed to
Speaker 1: keep tightening. Data Friday showed November's producer price and BIXS
Speaker 1: top forecast. Moreover, Wall Street anticipates this week's date on
Speaker 1: US consumer prices will show no significant let up. An
Speaker 1: eat del Judais, Bloomberg day break, all right, Vinny, thank you,
Speaker 1: And the Treasury is weighing in on the inflation fight.
Speaker 1: Secretary Janet Yellen is cautiously optimistic that the Fed can
Speaker 1: win its battle against HIE. Prior says, I believed by
Speaker 1: the end of next year, you will see which lower
Speaker 1: inflation if there's not an anticipated shock. Treasury Secretary Janet
Speaker 1: Yell until sixty minutes on CBS that she's seen positive signs,
Speaker 1: including lower shipping costs and reduced lag times for deliveries.
Speaker 1: Our listeners in Washington can hear sixty minutes Sunday nights
Speaker 1: at ten on Bloomberg Well and Deal News. This morning,
Speaker 1: Nathan am Jen is on the verge of making its
Speaker 1: biggest deal ever. Let's get the latest live at the
Speaker 1: Bloomberg Steve rapp Aboard, Good morning, Steve, Good morning, Karen,
Speaker 1: and Nathan m Jen has reportedly agreed to buy Horizon
Speaker 1: Therapeutics at evaluation of twenty six billion dollars. Assuming the
Speaker 1: deal goes through, sources tell Bloomberg Nurse negotiations could still
Speaker 1: fall apart. The biotech giant offered about one hundred sixteen
Speaker 1: dollars for each year of Horizon, roughly twenty bucks higher
Speaker 1: than the stocks closing price on Friday. Horizon chairs continue
Speaker 1: to climb this morning in pre market trading now up
Speaker 1: thirteen percent. Live in New York. I'm Steve Rappaport, Bloomberg Daybreak.
Speaker 1: All right, Steve, thanks for that. And we also have
Speaker 1: an acquisition this morning involving Microsoft, that companies agreed to
Speaker 1: purchase a stake in the London Stock Exchange Group. The
Speaker 1: deal gives Microsoft a four percent equity holding as part
Speaker 1: of a new long term strategic partnership between the firms
Speaker 1: and G and GEO Political news here Nathan, the US
Speaker 1: will send a delegation to Shine on the coming days.
Speaker 1: The move follows up on President Biden's meeting with Chinese
Speaker 1: President Chi Jin Ping last month. At the G twenty
Speaker 1: futures this morning are in the rise s and P
Speaker 1: futures up seven points, up about two tenths of upper
Speaker 1: sent DAL future is a forty seven or a tenth
Speaker 1: of upper cent, and nasday future is of twenty five
Speaker 1: or two tenths of upper cent. Ten. Your treasury up
Speaker 1: twelve thirty seconds. You know, three point five three percent
Speaker 1: they yield on the two year four point three two percent.
Speaker 1: Nine x Screwed oil is falling down six tents of
Speaker 1: upper cent or forty one cents at seventy sixty one
Speaker 1: cents a barrel and comax s goold is down about
Speaker 1: half percent. Straight to hand your latest local headlines plus
Speaker 1: a check of sports, and this is Bloomberg. All right, Karen,
Speaker 1: thank you. It is five thirty one on Wall Street,
Speaker 1: and Amy Morris is here with a look at what's
Speaker 1: going on in New York and around the world. Amy,
Speaker 1: thank you. Nathan, President Biden and Treasury Secretary Janet Yellen.
Speaker 1: Affirming US support for Ukraine, Yellin tells CBS is sixty minutes.
Speaker 1: American support will continue, quote as long as it takes
Speaker 1: thing we can to bring this war to a conclusion.
Speaker 1: Of course, we're providing considerable help um to Ukraine, both
Speaker 1: military and economic. USS promised thirty eight billion dollars in
Speaker 1: military aid and delivered thirteen billion dollars in direct aid
Speaker 1: to Ukraine. Already, New York officials a broken ground on
Speaker 1: a new Metro North line. Some are making way for
Speaker 1: other projects. After announcing Penn Station Access will provide direct
Speaker 1: train service from the Bronx to Manhattan's West Side, Senator
Speaker 1: Chuck Schumer says he's still fighting to fund other major
Speaker 1: infrastructure initiatives. New York is building the next generation of
Speaker 1: our public transit system that is going to help keep
Speaker 1: our city growing and includes the second phase of the
Speaker 1: Second Avenue subway line to extend into Harlem and the
Speaker 1: Gateway Project, which connects underground rail tunnels between New York
Speaker 1: and New Jersey. New Haven's first adult used recreational marijuana
Speaker 1: store is scheduled to open January. Affinity Health and Wellness
Speaker 1: already operates a medicinal marijuana shop in Amity. The vast
Speaker 1: majority of customers are expected to pre order marijuana products
Speaker 1: then pick up the orders as they would at a pharmacy.
Speaker 1: Members of the Marine Mammal Stranding Center yesterday buried the
Speaker 1: carcass of a thirty foot humpback whale that washed ashore
Speaker 1: on a New Jersey beach over the weekend. Because of
Speaker 1: the state of decomposition, they were not able to determine
Speaker 1: the cause of death. It was believed to have been
Speaker 1: younger than ten years old. Global News twenty four hours
Speaker 1: a day on air and on Bloomberg quick Take, powered
Speaker 1: by more than twenty seven hundred journalists and analysts in
Speaker 1: more than one hundred twenty countries. I'm Amy Morris, This
Speaker 1: is Bloomberg. Nathan thanks Amy five thirty three on Wall
Speaker 1: Street time for the Bloomberg Sports up they brought to
Speaker 1: you by Trice State outa John Steen show. All right, Nathan,
Speaker 1: Jets and Giants pretty much same boat. Exceeded expectations much
Speaker 1: of this season, but both now stuck on seven wins
Speaker 1: and now very much in the battle for a wild
Speaker 1: card playoff spot. The Jets and Buffalo trying to beat
Speaker 1: the Bills for the second time. They won the stats,
Speaker 1: more first downs, more possession time, They gained eighty seven
Speaker 1: more yard but the Bills won twenty to twelve to
Speaker 1: costly second half fumbles. For Robert Sala's team, defensive are
Speaker 1: really nice job in both situations minimizing the damage, but
Speaker 1: two turnovers are always gonna bey. When you lose turnover battle,
Speaker 1: you're you're you're not giving yourself a chance to win
Speaker 1: of for Polon, Jets have now lost three to last four,
Speaker 1: all on the road. The next two games all right
Speaker 1: against Detroit and Jacksonville, and those teams are much improved.
Speaker 1: The Lions just beat the Vikings. Detroit's won five the
Speaker 1: last six. The Jaguars just beat Tennessee by two touchdowns.
Speaker 1: That John It's next Day next Sunday night in Washington.
Speaker 1: That game, although a long way in determining whether they
Speaker 1: make the flowoffs. The Giants winless in their last four
Speaker 1: crushed at MetLife by Legally in Philadelphia forty eight to
Speaker 1: twenty two. The Eagles scored six touchdowns kicked two field goals.
Speaker 1: Big days for Jalen Hurds and Miles Sanders. The Eagles
Speaker 1: are now twelve and one. The Cowboys are ten and three.
Speaker 1: They nearly lost in what would have been a massive upset,
Speaker 1: but Dallas scored late to beat Houston. Forty Niners stay
Speaker 1: Hot blowout went over Tampa Bay. Tom Brady beaten by
Speaker 1: Brock Purdy was making his first NFL start at the Garden.
Speaker 1: Next Day Hot one or fourth Row one twelve ninety
Speaker 1: nine over Sacramento. Rangers host The Devil's Tonight. John Stash
Speaker 1: or Bloomberg Sports Nathan, Thank you, John and Bloomberg Sports
Speaker 1: has brought to you by Autia. Don't let someone else
Speaker 1: drive off in the outy model you've always wanted. Visit
Speaker 1: your local Tri state autie dealer to get behind the
Speaker 1: wheel of yours today, or visit outi Offers dot com
Speaker 1: for more information. SMP futures right now up seven points down,
Speaker 1: futures hired by fifty two and NASDAC futures on the
Speaker 1: rise by twenty six points five on Wall Street time
Speaker 1: for the Tri State Business report with Bloomberg's ed Corey
Speaker 1: Barnberg is laid off about ten employees in New York,
Speaker 1: the German investment banks grappling with the quiet deals market
Speaker 1: these days. The staff work for Barrenberg's US unit, which
Speaker 1: employs about eighty five people. In an emailed statement, as
Speaker 1: spokesperson said most of them worked in support functions for
Speaker 1: the four hundred thirty year old firm. G City, in
Speaker 1: Israel based commercial real estate company has agreed to sell
Speaker 1: Bridge Tower of building on Manhattan's Upper east Side for
Speaker 1: about one hundred fifty three million dollars. It's part of
Speaker 1: the group's strategic plan to sell non core assets. The
Speaker 1: transaction price is similar to the value of the building
Speaker 1: in the company's books. Cannabis licensees will no longer be
Speaker 1: required to accept storefronts leased by the state, a move
Speaker 1: applicants who want more control over their retail locations will like.
Speaker 1: According to The Times, cannabis regulators have scrapped a rule
Speaker 1: requiring the state's first retail operators to accept storefronts as
Speaker 1: signed by the government. That your Bloomberg Dry State Business Report.
Speaker 1: I'm Ed Corey, alright, ed, thank you. It is five
Speaker 1: thirty six on Wall Street. The following commentary is from
Speaker 1: Bloomberg Opinion. How Republicans lost their House edge in mid terms.
Speaker 1: I'm Justin Fox, the columnist for Bloomberg Opinion. Republican candidates
Speaker 1: got about fifty one percent of the votes cast for
Speaker 1: the House of Representatives in November and ended up with
Speaker 1: about fifty one percent of House seats. Seems fair. No,
Speaker 1: this is not how things worked from two thousand ten
Speaker 1: through two thousand sixteen, when Republicans won much larger shares
Speaker 1: of House seats than votes. The disconnect was most pronounced
Speaker 1: in two thousand twelve, when democrats one point one percentage
Speaker 1: point winning vote margin resulted in a seven point six
Speaker 1: point loss in terms of seats. Jerrymandering after the two
Speaker 1: thousand ten censes played a role in this, but political
Speaker 1: scientists pointed out that Democrats were also just inefficiently distributed,
Speaker 1: dominant in big cities but present in large if ultimately
Speaker 1: losing minorities and much of the rest of the country.
Speaker 1: Since Donald Trump was elected president in two thousand and sixteen,
Speaker 1: this distribution is shifted and the Republican edge has dwindled.
Speaker 1: I'm justin Fox. For more opinion, please go to Bloomberg
Speaker 1: dot com, Slash Opinion or O P I n go
Speaker 1: on the Bloomberg Terminal. This has been Bloomberg Opinion. Listen
Speaker 1: for Bloomberg opinion editorials every weekday. At this time, terminal
Speaker 1: customers can read more at O P I n go.
Speaker 1: It's now five thirty eight on Wall Street. Stay with
Speaker 1: us here on Bloomberg Daybreak for a conversation with Bloomberg's
Speaker 1: read Stevenson. He's got the big Take story on the
Speaker 1: Bloomberg Terminal this morning on Carlos Gone and the extraction
Speaker 1: crew that just made its way out of custody in
Speaker 1: Japan and is now looking for their due. Stay with
Speaker 1: us for that ahead of it. SMP futures are up
Speaker 1: seven points, staff futures up fifty five, Nasty futures up
Speaker 1: twenty eight. This is Bloomberg Markets, headlines and breaking news
Speaker 1: twenty four hours a day at Bloomberg dot Com, the
Speaker 1: Bloomberg Business Outland at Bloomberg quicktake. This is a Bloomberg
Speaker 1: business lash and I'm Karen Moscow. US not Index futures
Speaker 1: moving higher this morning. The dollar are racing in advance
Speaker 1: at the start of a pivotal week for monetary policy
Speaker 1: decisions from the FED, the European Central Bank and a
Speaker 1: host of their peers. We checked the markets all day long.
Speaker 1: Here at Bloomberg SNP futures of eight points or two
Speaker 1: tents of uppercent. Down futures are up about the same
Speaker 1: of fifty eight points, and nastack futures have a quarter
Speaker 1: percent or twenty nine points. The decks in Germany is
Speaker 1: down about two tents of upper cent. Can your treasury
Speaker 1: up twelve thirty seconds held three point five three percent.
Speaker 1: They yield on the two year four point three two percent.
Speaker 1: Nine x Scrude oil is down six tents percent or
Speaker 1: forty three cents at seventy dollars fifty nine cents of
Speaker 1: barrel comics gold is down half percent or nine dollars
Speaker 1: thirty cents at eighteen o one fifty announced. The euro
Speaker 1: one point oh five five nine against the dollar. British
Speaker 1: found one point to two eight six the yen one
Speaker 1: thirty six point seven three and that's a Bloomberg Business Flash.
Speaker 1: Now here's Amy Morris with Moore on what's going on
Speaker 1: around the world. Amy, thank you, Karen. Florida Governor rond
Speaker 1: De Santis thanked some of his South Florida donors at
Speaker 1: a closed door meeting. This was in Miami yesterday, where
Speaker 1: sources tell Bloomberg News to Santis noted how his victory
Speaker 1: could be a blueprint for Republicans in the future. Scientists
Speaker 1: in California now say they've made a breakthrough in nuclear
Speaker 1: fusion technology, producing more energy than consumed in a reaction
Speaker 1: for the very first time. The achievement was made at
Speaker 1: the U S Department of Energies Lawrence Livermore National Laboratory
Speaker 1: near San Francisco. In sports, in the NFL, the Bills
Speaker 1: beat the Jets, Giants lost to the Eagles, Ravens and
Speaker 1: forty Niners win. And hockey the Caps and Bruins win,
Speaker 1: and the NBA the Knicks beat The King's Global News
Speaker 1: twenty four hours a day on errand on Bloomberg Quicktake,
Speaker 1: powered by more than twenty seven journalists and analysts in
Speaker 1: more than one hundred money countries. I'm Amy Morris, and
Speaker 1: this is Bloomberg. Nathan alright, Amy, thank you. It is
Speaker 1: five forty two on Wall Street. This is Bloomberg Daybreak.
Speaker 1: I'm Nathan Hagar alongside Karen Moscow. Take a look at
Speaker 1: some of the other stories making news this morning. Wall
Speaker 1: Streets focus this week will be on inflation data and
Speaker 1: the Fed, but there are still a smattering of earnings
Speaker 1: reports ahead. Let's get the details now from Bloomberg's Charlie p. Fellott.
Speaker 1: Worries about how far central bankers will go to rain
Speaker 1: in inflation have kept investors on edge, and there is
Speaker 1: a great deal of uncertainty surrounding the earnings outlook. Kate
Speaker 1: Moore's head of thematic strategy at black Rock. Really, no
Speaker 1: one knows what earnings are gonna look like in I
Speaker 1: feel bad for the analysts that have to put out
Speaker 1: forecast when the uncertainty factor is so incredibly high and
Speaker 1: you can't make either evaluation or at earnings argument. Among
Speaker 1: this week's earnings reports are Accenture, Adobe, and Oracle in
Speaker 1: New York. Charlie Pellot Bloomberg Daybreak. All right, Charlie, thank you.
Speaker 1: A two prominent strategists are warning about future profit downgrades.
Speaker 1: Morgan Samley's Mike Wilson and David Coston at Goleman SAX
Speaker 1: say earnings could contract more than expected next year. They
Speaker 1: say emergens could come under increased pressure and provide a
Speaker 1: difficult backdrop for equities. Both Wilson and cost and see
Speaker 1: a tough start for stocks I meantime, across the pond,
Speaker 1: Care and Fresh data show the UK economy expanded in October.
Speaker 1: Businesses managed to recover output lost following the death of
Speaker 1: Queen Elizabeth. The second Gross domestic product rows five tenths
Speaker 1: percent from September, which included an extra public holiday for
Speaker 1: the Queen's funeral and a period of national morning. But
Speaker 1: when you look on a quarterly basis, GDP shrank three
Speaker 1: tenths per cent. UK Chancellor Jeremy Hunt weighed in on
Speaker 1: the downbeat data, well, these figures confirm that this is
Speaker 1: a very challenging economic situation here and across the world,
Speaker 1: and it will get worse before it gets better. But
Speaker 1: we have a plan that will more than half inflation
Speaker 1: over the next year and if we stay the course,
Speaker 1: we can get back to the strong economic growth that
Speaker 1: we need. Chancellor Jeremy Hunt spoke earlier this morning. The
Speaker 1: outlook could leave the Bank of England deeply divided this
Speaker 1: week over how much to raise interest rates to fight inflation. Well.
Speaker 1: Staying in the UK, Nathan, the government is planning for
Speaker 1: military staff and civil servants to cover for striking rail, health,
Speaker 1: postal and other workers in the coming weeks. Strikes your
Speaker 1: plan for almost every day through the rest of the month.
Speaker 1: Workers are demanding pay hikes that keep up with inflation,
Speaker 1: resulting in the biggest weave of industrial strife in the
Speaker 1: UK since the eighties. This is the Big Take, the
Speaker 1: best of Bloomberg's in depth original reporting from around the globe.
Speaker 1: This is a really fast moving story that caused a
Speaker 1: lot of outrage among investors. This is so fascinating market
Speaker 1: shutdown in a way it's never done before. That's gonna
Speaker 1: have consequences for years to come. The Big Take on
Speaker 1: Bloomberg Radio coming up to five on Wall Street and
Speaker 1: this morning's Bloomberg Big Take is on Carlo Scone, former
Speaker 1: Nissan chairman, and the price paid by the American father
Speaker 1: and son extraction team that facilitated his daring escape from Japan.
Speaker 1: Joining us now with is the author of the Big
Speaker 1: Take story this morning Bloomberg's read Stevenson read, it's good
Speaker 1: to have you with us. Thanks so much for this.
Speaker 1: Of course, a lot of us are familiar with the
Speaker 1: Carlos Gones story, but maybe not so familiar about Michael
Speaker 1: and Peter Taylor, the father and son who helped in
Speaker 1: his extraction. Tell us more about them, well, Nathan, it
Speaker 1: was about three years ago, almost to the same month
Speaker 1: that Carlos gone. Stage is dramatic to escape out of Japan.
Speaker 1: You know, it's one of those stories that you almost
Speaker 1: never hear about in business news, and so it captured
Speaker 1: the world's attention, and uh to a certain extent, it's
Speaker 1: been forgotten since then. You know, Going is now in
Speaker 1: Lebanon fighting to restore his reputation, although it's unlikely he'llever
Speaker 1: be facing a judge in a court anytime soon. But
Speaker 1: the other forgotten part of the story is the cost
Speaker 1: that you know, others have paid four Carlo Stone's freedom,
Speaker 1: namely Michael Taylor and Peter Taylor, who were unexpectedly extradited
Speaker 1: from the US to Japan last year and then spent
Speaker 1: sixteen months in um the Japanese prison system, which you know,
Speaker 1: some say is much harsher than you might imagine compared
Speaker 1: to the US. And now they're out, they're back in
Speaker 1: the US and also back in by route, and they're
Speaker 1: telling their story both in terms of the sacrifices they made,
Speaker 1: what they think they are owed for their ordeal, and
Speaker 1: as well as some you know, new details about the
Speaker 1: escape that have never been made public. Yeah, it's a
Speaker 1: really interesting story, particularly coming after the news last week
Speaker 1: about Brittney grind Or in the negotiation for her release
Speaker 1: from Russia. Michael and Peter Taylor from your reporting, don't
Speaker 1: mince words when it comes to how they feel about
Speaker 1: the Trump and Biden administrations. Essentially, they feel like they
Speaker 1: were forgotten, weren't they by those administrations in terms of
Speaker 1: their captivity. Indeed, Um, I think, you know, it's easy
Speaker 1: to sort of maybe speculate as to why, but the
Speaker 1: fact remains that, uh, you know, nobody really stepped in
Speaker 1: when the extradition process was happening under the Trump administration.
Speaker 1: In fact, it happened unusually quickly, and then of course,
Speaker 1: once a new administration and was in place, Um, the
Speaker 1: Biden administration also had a chance possibly to put a
Speaker 1: stop to proceedings, but that didn't happen either, and so therefore,
Speaker 1: you know, father and son were promptly shifted Japan where
Speaker 1: they pleaded guilty in a bid for leniency. Who knows
Speaker 1: whether they actually got the leniency or not, but some
Speaker 1: of the conditions they had to go through were pretty harsh.
Speaker 1: Nineties straight days and solitary. And uh. I also heard
Speaker 1: from Michael Taylor that you know, he tried to call
Speaker 1: his dying father and never got a chance to do so. Wow.
Speaker 1: And now they are finally out of the Japanese legal
Speaker 1: system and as you say, looking to get what they
Speaker 1: see as their due from Carlo Stone, as the former
Speaker 1: Nissan chairman tries to rebolster his reputation. What are they
Speaker 1: looking for from Carlos Stone? You've got about a minute
Speaker 1: left here. Indeed, Um, Michael Taylor never did this for profit.
Speaker 1: He has a history of going and helping objective children
Speaker 1: other people in trouble. So at the moment, what they're
Speaker 1: really just looking for is to be made whole. Um.
Speaker 1: The escape itself costs about one point three million dollars,
Speaker 1: I'd say about a two thirds of that had been paid,
Speaker 1: so they're looking for the remainder. But then of course
Speaker 1: there are some astronomical legal costs involved in fighting the
Speaker 1: extradition and navigating the Japanese legal system. Those amount to
Speaker 1: roughly three million dollars. So at the moment, what they're
Speaker 1: really looking for is to be made whole. And perhaps,
Speaker 1: you know, there may be a discussion about something on
Speaker 1: top of that, but that's another chapter to be written
Speaker 1: in this crazy story. Yeah, and it's a story that
Speaker 1: is really fascinating to get more details on, as you mentioned,
Speaker 1: one of those forgotten sidebars from the Carlos Going saga.
Speaker 1: Thanks for this read great having gone with us once again.
Speaker 1: Read Stevenson and Bloomberg News, the author of this morning's
Speaker 1: Big Take on Carlos Gone and his extraction crew. You
Speaker 1: can read much more about it at Ani Big Take
Speaker 1: Go on the Bloomberg Terminal or Bloomberg dot com slash
Speaker 1: Big Take. Future is moving higher this morning. You're listening
Speaker 1: to Bloomberg Daybreak, Markets, headlines and breaking news twenty four
Speaker 1: hours a day at Bloomberg dot Com, the Bloomberg Business
Speaker 1: at and at Bloomberg Quicktake. This is a Bloomberg Business
Speaker 1: Flash and I'm Karen Moscow. You must knock index futures
Speaker 1: higher this morning the dollar are racing on advance. We
Speaker 1: check the markets everything. We check the markets all day
Speaker 1: long here at Bloomberg Radio with S and P futures
Speaker 1: of eleven points or about three tens of Uppercental futures
Speaker 1: up seventy eight points or two tents of upper cent,
Speaker 1: and as deck futures have forty three points are about
Speaker 1: a third of up percent to your treasury of fifteen
Speaker 1: thirty seconds, you have three point five two percent, and
Speaker 1: they yield on the two year four point three two percent.
Speaker 1: Nine max Screwed oil is lower down nine tenths of
Speaker 1: upper cent or sixty one cents at seventy dollars, forty
Speaker 1: one cents of barrel comes. Gold is down four tenths
Speaker 1: of uppercent, down seven dollars ten cents, and one thousand,
Speaker 1: eight hundred three dollars sixty cents. Announced the euro this
Speaker 1: morning one point oh five six were against the dollar,
Speaker 1: British pound one point to to eight five, the yannas
Speaker 1: at one thirties six point six eight, and bitcoins lower
Speaker 1: down seven tenths of upper cent at almost seventeen thousand dollars.
Speaker 1: And that's a Bloomberg business flash. Nathan Karen Thank you.
Speaker 1: It's fifty six on Wall Street Time for our daily
Speaker 1: Bloomberg Lab Brief, exploring legal issues in the news. Today,
Speaker 1: we look at a case involving Harvard's former fencing coach
Speaker 1: and a telecom ceo. They're facing a jury over charges
Speaker 1: that they corrupted the admissions process at Harvard. In a
Speaker 1: case with echoes of the Varsity Blues admission scandal, Jack Joo,
Speaker 1: ceo of I Talk Global Communications, is accused of bribing
Speaker 1: coach Peter Brand to the tune of more than one
Speaker 1: and a half million dollars to help get his two
Speaker 1: sons into Harvard by having them designated fencing recruits. Key
Speaker 1: point at trial is going to be whether the defendant's
Speaker 1: actions harmed Harvard. For more on the case, Bloomberg's June
Speaker 1: Grosso speaks with our legal reporter Laurel Culkins and what's
Speaker 1: the defense the explin nation for all that money? Generosity?
Speaker 1: Defense says, you know, it's the cultural thing. The Zals
Speaker 1: are wealthy and from the Chinese tradition of being generous
Speaker 1: with their friends. And by the way, they say now,
Speaker 1: and they did not say this in any of the
Speaker 1: pre trial filings, but they told the jury on opening day.
Speaker 1: This was all alone that Peter Brand got an inheritance
Speaker 1: from his mom recently and paid everything off with interest.
Speaker 1: Of course, that also happened after he was indicted, and
Speaker 1: of course the prosecutors are going nuts, what do you
Speaker 1: mean there's no evidence that it was ever repaid. So
Speaker 1: the prosecution is actually trying to get the judge to
Speaker 1: say they have to take all that back. And they
Speaker 1: can't tell any of that to the jury because it
Speaker 1: doesn't matter what happened after the indictments. So what's gonna
Speaker 1: be interesting to see what happened now. The defense says
Speaker 1: Joos sons were nationally ranked fencers, outstanding athletes, and good
Speaker 1: students who were admitted on their own merit, but you
Speaker 1: never know with college admissions, and the prosecution says that
Speaker 1: Jaw didn't want to take any chances that is, some
Speaker 1: would be rejected, exactly. And you also have to recognize
Speaker 1: that the two sons are not exactly equal. They both
Speaker 1: had outstanding academics which qualified under Harvard's admissions, and then
Speaker 1: they both were competitive fencers. Shall we say the elder
Speaker 1: son actually went on to become co captain of Harvard's
Speaker 1: fencing team and was second strain all Ivy, so he
Speaker 1: clearly was talented. The younger son also competed for Harvard.
Speaker 1: He racked up, you know, some honors, but not as
Speaker 1: much as his brother. But the other thing is with Harvard,
Speaker 1: unlike some of the other colleges, the coach can't just
Speaker 1: say this is my recruit and they automatically get in.
Speaker 1: Harvard has a kind of a whole student evaluation process,
Speaker 1: and there's an interview and a committee process, so it
Speaker 1: will very much tips the scale in your favor, but
Speaker 1: it's not a deadlock. So I think Zoo was trying
Speaker 1: to tilt that scale as much in his son's favor
Speaker 1: as possible. But a big point in the trial is
Speaker 1: going to be was Harvard harmed? Because the zo's technically
Speaker 1: qualified for admissions on their own merit. They competitively for
Speaker 1: Harvard all four years that each boy was there, and
Speaker 1: they both paid full tuition. They didn't get any scholarships,
Speaker 1: so it's a question did Harvard get harm who's the victim? Here?
Speaker 1: That's Bloomberg Legal reporter Laura Culkins speaking with June Grosso,
Speaker 1: and you can catch more of that interview plus analysis
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